Loading...
HomeMy WebLinkAbout09-18-2018 Agenda PacketTuesday, September 18, 2018 5:30 PM REGULAR MEETING Council Hearing Room 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson and Mayor Heidi Harmon PUBLIC COMMENT ON CLOSED SESSION ITEM CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: No. of potential cases: One. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: A July 20, 2018 letter from Orcutt Associates, LLC’s attorney threatening litigation regarding the City’s compliance with Reimbursement Agreement dated November 20, 2007 and amended in July 22, 2011. A copy of the July 20, 2018 letter is on file with the City Clerk’s office. Adjourn to the Regular Meeting of Tuesday, September 18, 2018 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California. Tuesday, September 18, 2018 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 2 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Council Member Rivoire CITY ATTORNEY REPORT ON CLOSED SESSION PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15 minutes total) The Council welcomes your input. You may addr ess the Council by completing a speaker slip and giving it to the City C lerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. 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. 1.REVIEW MINUTES OF THE SEPTEMBER 4, 2018 CITY COUNCIL MEETING (PURRINGTON) Recommendation Approve the minutes of the City Council meeting held on September 4, 2018. San Luis Obispo City Council Agenda September 18, 2018 Page 3 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation Waive reading of all resolutions and ordinances as appropriate. 3. AWARD CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES CONTRACT, WATER RESOURCE RECOVERY FACILITY PROJECT (MATTINGLY / HIX) Recommendation Award a contract to Carollo Engineers, Inc. in the amount of $8,285,452 for Construction Management and Inspection Services for the Water Resource Recovery Facility Project, Specification No. 91363CM and authorize the City Manager to execute the agreement. 4. ADOPTION OF ORDINANCES APPROVING THE COMPREHENSIVE UPDATE TO THE CITY’S ZONING REGULATIONS (TITLE 17) OF THE MUNICIPAL CODE AND ASSOCIATED ZONING AMENDMENTS (CODRON / DAVIDSON) Recommendation: Adopt Ordinance 1650, entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California repealing and replacing Title 17 of the Municipal Code (Zoning Regulations) to implement the Land Use and Circulation Element (LUCE), clarify and advance City goals and policies, provide internal consistency, and to re -organize the Zoning Code, including the adoption of a Negative Declaration of Environmental Review, as represented in the staff report and attachments dated August 21, 2018 (Zoning Regulations, GENP-0327-2017);” and Adopt Ordinance 1651, entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Ordinance No. 1130 (1989 Series), modifying the design criteria, Section 5 (Code-1630-2018; south side of Monterey Street between 103 and 2223 Monterey, inclusive);” and Adopt Ordinance 1652, entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the City’s Zoning Map to designate approximately 20.2 acres within the R-1 and C/Os-20 zones on the West Side of Broad Street, south of Serrano Drive, as R-1-S, Low-Density Residential Zone and C/Os-S-20, Conservation/Open Space with a Special Considerations Overlay (RZ-1629-2018; 159 & 161 Broad Street and 141 Bressi Place).” San Luis Obispo City Council Agenda September 18, 2018 Page 4 5. BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF INTEREST CODE (HERMANN / PURRINGTON) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s conflict of interest code.” 6. EMERGENCY SERVICES AGREEMENT WITH CALIFORNIA POLYTECHNIC STATE UNIVERSITY (OLSON / BLATTLER) Recommendation: Authorize the Mayor to execut e a succession Agreement with California Polytechnic State University, in a form subject to the approval of the City Attorney, for emergency response services to Cal Poly. 7. APPROVAL OF THE FINAL MAP FOR TRACT 3083 WEST CREEK, 1299 ORCUTT ROAD (SBDV-1769-2015) (CODRON / DOSTALEK) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the final map for Tract 3083 West Creek (1299 Orcutt Road, SBDV-1769-2015).” 8. STORM EVENT REIMBURSEMENT PROCESSING (ELKE) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, designating its agents for disaster reimbursement.” 9. ADOPTION OF AN ORDINANCE ESTABLISHING CANNABIS BUSINESS OVERLAY ZONES WHERE CANNABIS BUSINESS ACTIVITY MAY BE PERMITTED WITHIN THE CITY (CODRON) Recommendation: Adopt Ordinance 1653, entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the City’s Zoning Code and Zoning Map to designate seven areas of the city as Cannabis Business Overlay Zones where cannabis businesses may be located as may be allowed or conditionally allowed by the underlying zoning district and the rules and regulations established in t he City’s Municipal Code (CODE-1058-2017).” San Luis Obispo City Council Agenda September 18, 2018 Page 5 10. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO, CITY OF SAN LUIS OBISPO POLICE DEPARTMENT, AND RISE (CANTRELL) Recommendation: Authorize the City Manager to sign the Memorandum of Underst anding between the City of San Luis Obispo, City of San Luis Obispo Police Department and RISE (Respect Inspire Support Empower). 11. A PUBLIC HEARING TO ADD PROPERTIES TO THE MASTER LIST OF HISTORIC RESOURCES AND TO THE CONTRIBUTING PROPERTIES LIST OF HISTORIC RESOURCES (CODRON / OETZELL) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California adding the property located at 1568 Higuera Street to the Master List of Historic Resources as “The Miles Fitzgerald Home” and adding the property located at 1582 & 1592 Higuera Street and 1061 Grove Street to the Contributing Properties List of Historic Resources (HIST-1458-2018)” PUBLIC HEARING AND BUSINESS ITEMS 12. RESOLUTION OPPOSING STATE PROPOSITION 6 TO REPEAL THE GAS TAX INCREASE, THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 AS APPROVED IN SB 1 BY THE STATE LEGISLATURE (GRIGSBY – 10 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of S an Luis Obispo, California, opposing Proposition 6 – SB 1 Repeal,” to support ongoing allocation of state funds to maintain and repair state, county, and city transportation infrastructure. 13. CLIMATE ACTION PLAN UPDATE STATUS REPORT, GREENHOUSE GAS EMISSIONS INVENTORY UPDATE, AND DIRECTION ON GREENHOUSE GAS REDUCTION TARGETS (CODRON / FOWLER / HILL / READ – 60 MINUTES) Recommendation: 1. Receive and file the 2018 provisional community greenhouse gas emissions inventory report and presentation; and 2. Provide direction to staff regarding updated greenhouse gas targets. San Luis Obispo City Council Agenda September 18, 2018 Page 6 14. PUBLIC HEARING TO INTRODUCE AN ORDINANCE AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM AND TO ADOPT AND IMPLEMENT RELATED PROCESSES (HERMANN / HILL / READ – 75 MINUTES) Recommendation 1. Receive the CCE Technical Study and presentation; and 2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, authorizing the implementation of a community choice aggregation program”; and 3. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the joint powers agreement establishing Central Coast Community Energy on behalf of the City of San Luis Obispo”; and 4. Appoint two Council members to serve as the City’s representatives on Central Coast Community Energy’s Board of Directors; and 5. Direct staff to continue to support Central Coast Community Energy implementation and program launch until such time that the new agency has hired staff and transitioned to an operational, independent agency. 15. MIOSSI BROTHERS LA CUESTA RANCH OPEN SPACE ACQUISITION (JOHNSON / HILL – 30 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California authorizing the acquisition of a portion of the Miossi Brothers La Cuesta Ranch property identified as Assessor Parcel Nos. 070-241-013; 073-231-008; 073-271-013; and 073-341-003 (Portion) totaling approximately 266 acres in unincorporated San Luis Obispo County.” San Luis Obispo City Council Agenda September 18, 2018 Page 7 LIAISON REPORTS AND COMMUNICATIONS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, October 2, 2018 at 6 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meet ings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participat e in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781 -7100. Page intentionally left blank. San Luis Obispo Page 1 Tuesday, September 4, 2018 Regular Meeting of the City Council CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 4, 2018 at 4:00 p.m. in the Council Chambers Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. MAYOR REPORT ON CLOSED SESSION Mayor Heidi Harmon stated that there was no reportable action for Closed Session held on August 28, 2018 PUBLIC HEARING ITEMS AND BUSINESS ITEMS 1.PUBLIC HEARING TO INTRODUCE AN ORDINANCE ESTABLISHING LOCATIONS WHERE CANNABIS BUSINESS ACTIVITY MAY BE PERMITTED WITHIN THE CITY Community Development Director Michael Codron and Associate Planner Rachel Cohen provided the staff report and responded to Council questions. Public Comments: Sean Donahoe Don Hedrick Matt Quaglino Keith Sweeney Packet Pg. 9 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 2 ---End of Public Comment --- ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0-0 to Adopt a Resolution No. 1653 (2018 Series) entitled: “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the City’s Zoning Co de and Zoning Map to designate seven areas of the City as Cannabis Business Overlay Zones where cannabis businesses may be located as may be allowed or conditionally allowed by the underlying zoning district and the rules and regulations established in the City’s Municipal Code (Code-1058-2017)” STUDY SESSION ITEMS 2.STUDY SESSION TO RECEIVE A COMMUNITY CHOICE ENERGY STATUS REPORT AND PROVIDE DIRECTION ON KEY COMMUNITY CHOICE ENERGY ISSUES Deputy Director, Office of Sustainability Bob Hill, Sustainability Manager Chris Read and Shawn Marshall, Lean Energy provided an in-depth staff report and responded to Council questions. Public Comments: Don Hedrick Eric Veium ---End of Public Comment --- ACTION: Receive and file the community choice energy reports and presentation. ADJOURN AT 5:34 PM TO THE REGULAR MEETING OF SEPTEMBER 4, 2018 TO BEGIN AT 6:00 P.M., IN THE COUNCIL CHAMBER Packet Pg. 10 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 3 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, September 4, 2018 at 6:00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Council Member Aaron Gomez led the Pledge of Allegiance. PROCLAMATIONS AND APPOINTMENT 3.PROCLAMATION - RECOGNITION OF SERVICE - RON DECARLI Mayor Harmon present ed a proclamation to Ron DeCarli, Executive Director of the San Luis Obispo Council of Governments, who is retiring after over 40 years of service in Transportation Planning, Coordination, and Programming in San Luis Obispo County. 4.PROCLAMATION FOR DRIVE ELECTRIC WEEK Mayor Harmon presented a proclamation to Barry Rands and Eric Veium declaring September 8- 16, 2018 as National Drive Electric Week. 5.APPOINTMENT TO THE HUMAN RELATIONS COMMISSION, PLANNING COMMISSION AND TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD City Clerk Teresa Purrington presented the staff report. Public Comment None --End Public Comment — Packet Pg. 11 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 4 ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0 to approve to: 1.Confirm the appointment of William (Bill) Crewe to the Human Relations Commission, to complete an unexpired term through March 31, 2019; 2.Confirm the appointment of Nicholas Quincey to the Planning Commission, to complete an unexpired term through March 31, 2021; and 3.Confirm the appointment of Dean Hutton to the Tourism Busine ss Improvement District Board, to complete an unexpired term through March 31, 2021. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Rick London, United Way of San Luis Obispo Don Hedrick Louise Justice Jim Duenow Jeffery Specht David Brodie Debbie Anthony Logan Hunter T. Keith Gurnee Sandra Marshall Linda White Garrett Otto David Orszag Bob Shanbrom Cheryl McLean Anne Hoges Kim Bisheff --End Public Comment -- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 6 - 8 and 10 - 14. Item 9 pulled by Council Member Pease. ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER GOMEZ, CARRIED 5-0 to approve Consent Item #9. 6.REVIEW MINUTES OF THE AUGUST 21, 2018 MEETING CARRIED 5 – 0 to: Approve the minutes of the City Council meeting held on August 21, 2018. 7.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5 – 0 to: Waive reading of all resolutions and ordinances as appropriate. Packet Pg. 12 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 5 8.2018 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT APPLICATION CARRIED 5 – 0 to: 1.Authorize staff to submit an application for a 2018 Edward Byrne Memorial Justice Assistance Grant in the amount of $15,227. 2.If the grant is awarded, authorize the City Manager to execute necessary grant documents and direct the appropriation of monies into the accounts required to administer the grant. 9.AUTHORIZE A SOLAR POWER PURCHASE AGREEMENT WITH FOREFRONT POWER FOR CITY FACILITIES CARRIED 5 – 0 to: 1.Authorize staff t o negotiate a solar power purchase agreement with ForeFront Power for the design and potential development, operation, and maintenance of solar energy systems at and for city facilities; and 2.Adopt a Resolution No. XXXX (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, making findings on energy savings and determining other matters in connection with energy service agreements;” and 3.Authorize the City Manager to enter into a solar power purchase agreement with ForeFront Power in a form subject to the approval of the City Attorney; and 4.Authorize the City Manager to enter into Interconnection Agreements to maintain “time of use” rates for City facilities in a form subject to the approval of the City Attorney. Public Comment Eric Veium Jesse Elliott 10.ELIMINATE THE SPECIFIED HOURS OF OPERATION FOR ALL PUBLIC PARKING STRUCTURES TO ALLOW THE PARKING STRUCTURES TO BE OPERATIONAL ON A 24/7/365 BASIS CARRIED 5 – 0 to adopt Resolution No. XXX (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, to eliminate hours of operation at public parking structures” 11.REVIEW OF A MILLS ACT HISTORIC PRESERVATION AGREEMENT FOR THE MASTER LIST HISTORIC HARRY E. LYMAN HOUSE CARRIED 5 – 0 to adopt Resolution No. XXXX (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a historic property preservation agreement between The City and the owner of the Harry E. Lyman House at 868 Upham Street” 12.REVIEW OF A MILLS ACT HISTORIC PRESERVATION AGREEMENT FOR THE MASTER LIST HISTORIC TEASS HOUSE Packet Pg. 13 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 6 CARRIED 5 – 0 to adopt Resolution No. XXXX (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owner of the Teass House at 890 Osos Street.” 13.APPROVAL OF SOLE SOURCE ELECTRIC VEHICLE CHARGING STATION CONTRACT WITH CHARGEPOINT, APPROPRIATE ADDITIONAL FUNDS FROM PARKING FUND, AUTHORIZE CITY MANAGER TO ESTABLISH ELECTRIC VEHICLE CHARGING RATES AND TO SIGN MASTER SERVICES AND SUBSCRIPTION AGREEMENTS CARRIED 5 – 0 to: 1.Approve the award of a sole source contract to ChargePoint for the purchase of Electric Vehicle charging stations; and 2.Appropriate $150,000 in additional funds from the Parking unreserved working capital to cover additional costs for expanding the project to include the Marsh Street Structure and two floors in the 919 Palm Street Structure; and 3.Authorize the City Manager, or his designee, to establish and modify the EV charging rates for each location; and 4.Authorize the City Manager, or his designee, to sign the Master Services and Subscription Agreement with ChargePoint. Public Comment Don Hedrick Eric Veium PUBLIC HEARING AND BUSINESS ITEMS 14.WATER RESOURCE RECOVERY FACILITY PROJECT UPDATE Utilities Director Carrie Mattingly. Deputy Director Dave Hix and City Attorney Christine Dietrick provided the staff report and responded to Council questions. Public Comments: None ---End of Public Comment --- ACTION: Receive and file the update on the Water Resource Recovery Facility Project and associated Project Labor Agreement negotiations. Packet Pg. 14 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 7 15.ANHOLM BIKEWAY AND GENERAL PLAN AMENDMENTS Public Works Director Daryl Grigsby, Transportation Manager Jake Hudson, and Adam Fukushima Active Transportation Manager, please present the report . RECESS Council recessed at 8:00 p.m. and reconvened at 8:15 p.m., with all Council Members present. Public Comments: Zoe Oliver Wesley Hugo Rippens Owen Rippens Rilo Rippens Keith Miller Chris McBride Sara DellaRipa Emily McBride Craig Lindaman Gary Havas Ken Kienow Kevin Lindaman Stephen Morrow Jacob Lewis Kather yn Hicks Raquel Smith Scott Bisheff Pete Evans Charles Weir Bonnie Mello Lisa Jouet Clint Slaughter Louis Zimmerman Wendy Knight Melissa Godsey Saundra Carscaden Tea Ester Higgins Claire Swenson Meri Kay Gurnee Kate Murray Pete Schwartz Scott Mann Tony Skapinsky Rich Graziano Erika Wolfr am Michael Mulvihill Lea Brooks Doug Wood Jan Marx T. Keith Gurnee Debbie Anthony Dave Romero Jesse Englert Jonathan Roberts Karen Aydelott Barry Rands Charles Birdsong Chenin Otto Kim Bisheff Alice Donatello Megan Linder Corliss Campbell Tim Wilkinson Richard Schmidt Tom Boyle Genevieve Czech Greg Wynn Charles Feltman Miles Gary Bob Shanbrom James Lopes Mila Vulovich LaBarre Odile Aryal Melanie Mills Don Hedrick Ryan Lawrence Hemalata Dandekar Garrett Otto ---End of Public Comment--- RECESS Council recessed at 10:30 p.m. and reconvened at 10:40 p.m., with all Council Members present. ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY COUNCIL MEMBER GOMEZ, CARRIED 3-2 (VICE MAYOR CHRISTIANSON AND COUNCIL MEMBER PEASE VOTING NO) to approve Resolution No. XXX (2018 Series) entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, TO APPROVE AN AMENDMENT TO THE ANHOLM BIKEWAY PLAN” Packet Pg. 15 Item 1 San Luis Obispo City Council Minutes of September 4, 2018 Page 8 With the following: •Removal of on-street parking on one-side of the street of Broad St (Mission to Ramona) in order to accommodate a Class IV buffered / protected bike lane in the southbound direction and a Class III shared lane in the northbound direction •Removal of on-street parking on one side of the street of Chorro St (Mission to Ramona) to install two-way protected bikeways on Chorro St (Lincoln to Mission) COUNCIL COMMUNICATIONS AND LIAISON REPORTS Mayor Harmon indicated she met with Human Relations Commission subcommittee on Diversity. She also attended the Queenie Warden dedication and spent the night in the overflow shelter. Council Member Pease attended Community Affair Council event working on better communication in combatting prejudice. ADJOURNMENT The meeting was adjourned at 11:20 p.m. The next Regular City Council Meeting is scheduled for September 18, 2018 at 5:30 and 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2018 Packet Pg. 16 Item  Meeting Date: 9/18/2018 FROM: Carrie Mattingly, Director of Utilities Prepared By: Dave Hix, Deputy Director – Wastewater Jennifer Metz, Utilities Projects Manager SUBJECT: AWARD CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES CONTRACT, WATER RESOURCE RECOVERY FACILITY PROJECT , SPECIFICATION NO. 91363CM RECOMMENDATION Award a contract to Carollo Engineers, Inc. in the amount of $8,285,452 for Construction Management and Inspection Services for the Water Resource Recovery Facility Project, Specification No. 91363CM and authorize the City Manager to execute the agreement . DISCUSSION On May 15, 2018, the City Council approved the Request for Proposals (RFP) for Construction Management and Inspection Services for the Water Resource Recovery Facility (WRRF) Project and authorized staff to advertise the RFP (Attachment A). Staff advertised the RFP on May 19, 2018 (Attachment A). On June 6, 2018, staff held a pre-proposal meeting and representatives from eleven construction management and inspection firms were in attendance. On July 13, 2018 staff received three proposals for construction management and inspection services. Because staff did not receive direction from the City Council to initiate negotiation of a Project Labor Agreement (PLA) for the WRRF Project until July 10, 2018, the RFP for construction management services did not include any provisions related to consultant or subconsultant obligations regarding a PLA and the implications of such an agreement were not addressed by any of the proposing consultants. The written proposals were evaluated by a selection panel which consisted of staff from the Utilities Department, members of the WRRF Program Management Team (Water Systems Consulting, Inc.), the project manager from the design engineer (Jacobs), and staff from the Public Works Department. Evaluation criteria included project understanding, team qualifications and experience, local knowledge, references, and level of effort. Upon review of the written proposals, the selection panel convened to finalize the scores for ea ch proposal. All three teams moved to the next round and interview invitations were sent to each team on August 1, 2018. Teams were provided with key topics to be included in a prepared presentation, along with specific questions and issues identified by the selection panel to be addressed in a question and answer session. Interviews were held on August 15, 2018. Teams were allotted 30 minutes to give a prepared presentation, followed by a 60-minute question and answer session. Discussion topics included t he firm’s approach to integrating with City staff and the Program Management Team, approach to partnering with the construction contractor to foster a collaborative working relationship, division of responsibilities among field office staff, commitment of proposed personnel for duration of the project, construction schedule, approach to maintaining operation of the facility through construction, and approach to start -up and commissioning. Packet Pg. 17 Item 3 Following the interviews, the selection panel deliberated and ident ified Carollo Engineers, Inc. (Carollo) as the preferred firm. The Carollo team included highly qualified construction management staff with extensive membrane bioreactor (MBR) experience, experience working within active treatment facilities, and ultravio let (UV) disinfection system expertise. The Carollo team recently managed the construction of a $200M upgrade to the City of Riverside’s Regional Water Quality Control Plant, which included the installation of a 26 -million gallon per day MBR process within an active treatment facility. In addition, the Carollo team included start -up and commissioning experts and project controls professionals to manage the project schedule and budget. Carollo received strong recommendations from each of the references conta cted by Utilities staff and the Program Management Team. The Program Management Team met with Carollo on August 17, 2018, to begin negotiating the final scope of work and fee. Based on feedback from City staff and the Program Management Team, Carollo supplemented the hours for field office and inspection staff to more effectively manage construction administration tasks and construction observation. In addition, budget was included to provide additional scope for Carollo’s UV subject matter expert. Negotiat ions of the scope of services resulted in a final negotiated fee of $8,285,452. Within the final negotiated fee is an allowance for materials testing and specialty inspection services. Carollo will defer retaining the services of a materials testing and specialty inspection services firm until the conclusion of the Project Labor Agreement negotiations. If the Council ultimately approves a PLA, the services of a testing and specialty inspection subconsultant could be implicated, depending on the finally nego tiated terms of the PLA, and further negotiation with Carollo may be necessary to address any cost or subconsultant availability issues arising from PLA requirements. Staff recommends awarding the contract for Construction Management and Inspection Service s for the Water Resource Recovery Facility Project, Specification No. 91363CM, to Carollo Engineers, Inc. (Attachment B). CONCURRENCES The Public Works Department concurs with the recommendation in this report. ENVIRONMENTAL REVIEW The City Council ado pted Resolution 10740 (2016 Series) certifying the environmental impact report (EIR) for the WRRF Project (SCH #2015101044) on August 16, 2016. Recommendations described here are for requesting proposals and hiring Construction Management and Inspection Services for construction of the WRRF Project analyzed under that EIR. These actions do not trigger the need for additional environmental review. Packet Pg. 18 Item 3 FISCAL IMPACT Approval of the financing agreement between the State Water Resources Control Board and the City will be presented to City Council for its consideration on November 13, 2018 . Once executed, WRRF project costs retroactive to July 20, 2018 are eligible for reimbursement. Repayment of the State loan commences one year after project completion; expected to be Summer 2023. The cost of the proposed Construction Management and Inspection Services contract is $8,285,452 and will be paid for through the loan proceeds. ALTERNATIVE Reject proposals and direct staff to re-advertise the Request for Proposals. The City Council may choose to reject all proposals and direct staff to re -advertise for these services. This action will delay the ability of the construction manager to add value to the project through assisting in the bidding, bid review, and other aspects of project pre-construction. Attachments: a - 05-15-2018 CAR b - Agreement and Scope Packet Pg. 19 Item 3 Meeting Date: 5/15/2018 FROM: Carrie Mattingly, Director of Utilities Prepared By: David Hix, Deputy Director Utilities – Wastewater Jennifer Metz, Utilities Projects Manager Miguel Barcenas, Utilities Engineer SUBJECT: REQUEST FOR PROPOSALS – CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES, WATER RESOURCE RECOVERY FACILITY PROJECT RECOMMENDATION Approve the Request for Proposals Construction Management and Inspection Services, Water Resource Recovery Facility Project, Specification No. 91363CM and authorize staff to advertise the Request for Proposals. DISCUSSION The Water Resource Recovery Facility (WRRF) project is presently in 95 percent design with construction bidding scheduled in November 2018, leading to the WRRF being under construction in early 2019. The WRRF project will require skillful construction management. Request for Proposals (RFP) Construction management for the WRRF will require a team with specialized skills, that has a thorough knowledge of construction inspection and the required administrative and legal experience to deliver a successful project. The construction manager must have a comprehensive understanding of the project’s scope, and ability to keep the project on schedule while meeting important milestones and assisting in managing costs. This RFP asks for the proposer to prove experience and competence in the construction management field. Listed below are some of the key requirements from the RFP (Attachment A): Demonstrate the required experience in project construction equivalent to t he cost, complexity, and schedule requirements of the WRRF project. Provide a multi-disciplinary team of professionals. Understand and assist the City in complying with the requirements of the State Revolving Fund and other grants or funding sources. Knowledge of critical sequencing and schedule requirements to ensure the timely construction of key processes for regulatory compliance timelines. Possess a thorough knowledge in construction scheduling. Demonstrated ability to work closely with the City, designer, and contactor on schedule development, project review and changes. Packet Page 261 Item 12 Packet Pg. 20 Item 3 Ensure the construction activities comply with the WRRF environmental impact report’s Mitigation Monitoring and Reporting Program. Identify potential problems, work collaboratively with the City, designer, contractor, and program manager to resolve conflicts, negotiate change orders, and analyze and approve pay estimates. NEXT STEPS Upon authorization from Council, staff will release the RFP for construction management and inspection services. Staff will evaluate proposals and negotiate costs to provide a recommendation of the most qualified consultant. Staff will return to Council to seek authorization to award an agreement to the Construction Management firm that best meets City’s requirements and needs. Staff expects to finalize this process in August and return to Council in early September. ENVIRONMENTAL REVIEW The City Council adopted Resolution 10740 (2016 Series) certifying the environmental impact report (EIR) for the WRRF Project (SCH #2015101044) on August 16, 2016. Recommendations described here are for requesting proposals and hiring Construction Management and Inspection Services for construction of the WRRF Project analyzed under that EIR. These actions do not trigger the need for additional environmental review. FISCAL IMPACT The City performed extensive outreach to other municipalities and districts who had recently completed comparable projects to get an estimate of costs for these professional services. What staff found was these services varied widely in scope and complexity. Many projects required just Construction Management or Inspection services, while others incorporated their own staff for portions of the services. Other projects were design-build or another construction delivery method that changes how Construction Management and Inspection Services are utilized. Because of these factors staff is hesitant to provide a range o f anticipated costs at this time. The total $140 million project cost for the WRRF includes construction management and inspection services. Staff will bring Council a recommendation for these services that best fits the total budget, conveys the intent of the project charter , and will deliver a successful project. Staff will seek reimbursement for these services from the WRRF project’s State Revolving Fund SRF) loan. On December 13, 2016 the City Council adopted a resolution to allow reimbursement of advanced monies related to the construction of the WRRF. This resolution will enable the City to seek reimbursement, if needed, for these services after the final agreement for the SRF loan has been finalized, sometime later this year. Packet Page 262 Item 12 Packet Pg. 21 Item 3 ALTERNATIVE Elect not to approve an RFP of construction management services. The City Council may elect not to approve the RFP at this time. Staff does not recommend this alternative due to complicated nature of the project and lack of City staff resource to perform the work. Bringing a construction manager on-board early may also allow assisting the City in the bidding, bid review and other aspects of project pre-construction. Attachments: a - Council Reading File - WRRF CM RFP Spec No. 91363CM Packet Page 263 Item 12 Packet Pg. 22 Item 3 Page intentionally left blank. Packet Page 264 Item 12 Packet Pg. 23 Item 3 Water Resource Recovery Facility Project Spec. No. 91363 CM, Construction Management & Inspection Services 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 CAROLLIO ENGINEERS, INC., hereinafter rereferred to as Contractor. W I T N E S S E T H: WHEREAS, on May 15, 2018, City requested proposals for Construction Management and Inspection Services for the City of San Luis Obispo Water Resource Recovery Facility (WRRF) Project per Specification No. 91363CM. WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services. 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 services. 2. INCORPORATION BY REFERENCE. City Specification No. 91363CM and Contractor’s proposal dated July 13, 2018, are hereby incorporated in and made a part of this Agreement. 3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefor compensation in a total sum not to exceed $8,285,452. City shall furnish Contractor with available studies, reports and other data pertinent to the Contractor’s services; obtain or authorize the Contractor to obtain or provide additional reports and data as required for the performance of the Contractor’s services hereunder, and the Contractor shall be entitled to use and rely upon all such information and services provided by the City or others in performing the Contractor’s services hereunder. 4. CONTRACTOR’S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees to perform the work set forth in Exhibit A, City Specification No. 91363CM and Contractor’s proposal. In the event there is a conflict between Exhibit A, City Specification No. 91363CM and Contractor’s proposal, then the following order of precedence shall control: (1) Exhibit A; (2) City Specification No. 91363CM; and (3) Contractor’s proposal. The Contractor shall complete the work and services required herein in accordance with the prevailing standard of care by exercising the skill and ability ordinarily required of consultants performing the same or similar services, under the same or similar circumstances in the State of California. 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 Engineer. 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 City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Packet Pg. 24 Item 3 Water Resource Recovery Facility Project Spec. No. 91363 CM, Construction Management & Inspection Services Contractor [ ] [ ] [ ] [ ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor 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. 9. THIRD PARTIES. The services to be performed by the Contractor are intended solely for the benefit of the City. No person or entity not a signatory to the contract shall be entitled to rely on the Contractor’s performance of its services hereunder, and no right to assert a claim against the Contractor by assignment of indemnity rights or otherwise shall accrue to a third party as a result of the contract or the performance of the Contractor’s services hereunder. 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: City Clerk City Manager APPROVED AS TO FORM: CONTRACTOR By: City Attorney Packet Pg. 25 Item 3 Packet Pg. 26 Item 3 Packet Pg. 27 Item 3 Packet Pg. 28 Item 3 Packet Pg. 29 Item 3 Packet Pg. 30 Item 3 Packet Pg. 31 Item 3 Packet Pg. 32 Item 3 Packet Pg. 33 Item 3 Packet Pg. 34 Item 3 Packet Pg. 35 Item 3 Packet Pg. 36 Item 3 Packet Pg. 37 Item 3 Packet Pg. 38 Item 3 Packet Pg. 39 Item 3 Packet Pg. 40 Item 3 Packet Pg. 41 Item 3 Packet Pg. 42 Item 3 Packet Pg. 43 Item 3 Packet Pg. 44 Item 3 Packet Pg. 45 Item 3 Packet Pg. 46 Item 3 Packet Pg. 47 Item 3 Packet Pg. 48 Item 3 Packet Pg. 49 Item 3 Packet Pg. 50 Item 3 Packet Pg. 51 Item 3 Packet Pg. 52 Item 3 Packet Pg. 53 Item 3 Packet Pg. 54 Item 3 Packet Pg. 55 Item 3 Packet Pg. 56 Item 3 Packet Pg. 57 Item 3 Packet Pg. 58 Item 3 Packet Pg. 59 Item 3 Packet Pg. 60 Item 3 Packet Pg. 61 Item 3 Packet Pg. 62 Item 3 Packet Pg. 63 Item 3 Packet Pg. 64 Item 3 Packet Pg. 65 Item 3 Packet Pg. 66 Item 3 Packet Pg. 67 Item 3 Packet Pg. 68 Item 3 Packet Pg. 69 Item 3 Packet Pg. 70 Item 3 Packet Pg. 71 Item 3 Packet Pg. 72 Item 3 Packet Pg. 73 Item 3 Packet Pg. 74 Item 3 Packet Pg. 75 Item 3 Packet Pg. 76 Item 3 Packet Pg. 77 Item 3 Packet Pg. 78 Item 3 Packet Pg. 79 Item 3 Packet Pg. 80 Item 3 Packet Pg. 81 Item 3 Packet Pg. 82 Item 3 Packet Pg. 83 Item 3 Packet Pg. 84 Item 3 Packet Pg. 85 Item 3 Packet Pg. 86 Item 3 Packet Pg. 87 Item 3 Packet Pg. 88 Item 3 Packet Pg. 89 Item 3 Packet Pg. 90 Item 3 Packet Pg. 91 Item 3 Packet Pg. 92 Item 3 City of San Luis Obispo Water Resource Recovery Facility Project Construction Management and Inspection Services (Specification No. 91363CM) Scope of Work Task No. 1 – Bidding Phase Services: The Design Engineer is the primary party responsible for providing technical assistance during the bidding phase except for Contractor Selection Assistance. The Construction Manager (CM) is responsible for supporting the construction bidding process and shall perform the following tasks during the bidding phase for the construction contract: 1. Review Bid Documents: Review the Front End Documents and the Contract Documents that specify: • Construction sequence and constraints (01 31 13). • Language specific to construction administration, including notice requirements, conflict resolution, and claim procedures (00 72 00 & 00 73 00). • Requirements and procedures for maintenance of plant operations, including access during the course of construction. • Requirements for taking existing facilities out of service, including responsibility for removal and disposal of tank contents, cleaning of facilities, and purging of digesters. • Scheduling (01 32 00) • Payment (01 29 00). • Submittal requirements (01 33 00). • Commissioning and Startup (01 91 00 & 01 91 14). • Temporary Facilities (01 50 00). • Contractor work areas, laydown areas and access. 2. Chair the Pre-Bid Conference: Lead the Pre-Bid Conference and prepare a PowerPoint presentation for prospective bidders describing the Project scope of work, bid proposal requirements, and key project issues. Assist in answering questions from proposers on Divisions 00 and 01 in the Bid Documents. Provide a draft copy of the PowerPoint presentation to the City a minimum of five (5) business days in advance. Provide minutes detailing questions raised and discussions during meeting a minimum of three (3) business days after the meeting. 3. Addenda to Bid Documents: Review addenda, prepared by Design Engineer, and all correspondence as needed to address issues identified during the bid process. Prepare addenda items specific to Division 00 and 01 in the Bid Documents. 4. Contractor Selection Assistance: Assist the City in evaluating bids on the construction project and recommending award. Construction Manager will prepare a Bid Tabulation, and submit a report with recommendations. 5. Bid Alternate Selection Assistance: Assist the City and the Design Engineer in evaluating bid alternates and recommending selection. 6. Conformed Contract Document Review: Review conformed contract documents prepared by Design Engineer and provide comments to Design Engineer to incorporate. 7. Meetings Allowance: Include an allowance for 60 hours of the Construction Manager’s time to participate in miscellaneous pre-construction and bidding phase activities including, but not limited to, design progress meetings, risk workshops, startup and commissioning planning meetings, and maintenance of plant operation meetings. The allowance shall not be utilized without express written direction from the City. Packet Pg. 93 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 2 Task No. 2 – Project Management: The CM Team is responsible for providing a Construction Manager (CM) that will be responsible for the following general tasks and services. The CM shall ensure appropriate staff, including Resident Engineers and Field Inspectors, are available to perform the services indicated herein. The CM is responsible for maintaining ongoing interaction and communication with the City, the City Program Manager, the General Contractor, and the Design Engineer. Task 2.1 – Construction Management Plan Construction Manager shall prepare a Construction Management Plan (CMP), which shall include at a minimum the following items: 1. Organizational Structure: Provide the Construction Manager’s project organization, individual assignments, duties and responsibilities, phone numbers, lines of authority, and methods for interfacing with the City, the General Contractor, City Program Manager, and the Design Engineer. 2. Project Control System: Establish document control systems and procedures for documenting communications and correspondence using Procore. Provide new forms and utilize standard forms included in the specifications that the Construction Manager and General Contractor will be using to transmit and formalize all Requests for Information (RFI), clarifications, submittals, inspector’s daily reports, progress payments, and other official project documents. 3. Meeting and Occurrence Procedures: Establish schedules, notices, agendas, meetings, reporting procedures, documentation requirements, and acceptance processes in a timely manner. 4. Contract Compliance Procedures: Describe procedures for expediting and processing submittal reviews, clarifications, change orders, and contract close out activities. 5. Submit a draft CMP to the City within fifteen (15) business days from the Construction Manager’s notice to proceed (NTP) for review and approval by the City. 6. Construction Manager shall incorporate the City’s comments and revise the CMP within five (5) business days from receipt of the comments. Task 2.2 – Project Meetings Construction Manager shall prepare agenda and other meeting documentation (i.e., submittal log, RFI log, decisions log, etc.), conduct, and prepare/distribute meeting minutes for the subsequent project meeting related to: 1. Kickoff Meeting: Assume a maximum two (2) hour kickoff meeting to be held at the construction trailers, Corporation Yard, or other city facility. 2. Pre-Construction Conference: Construction Manager shall schedule and notify appropriate parties, and conduct the Pre-construction Conference with the General Contractor. The meeting shall cover the overall project objectives, responsibilities of key personnel and agencies, schedules, schedule of values (bid breakdown), procedures for handling submittals, correspondence, local agency permit requirements, requests for Packet Pg. 94 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 3 clarification, progress payments, change orders and other pertinent topics. Provide opportunities to have the Contractor’s questions answered. The meeting shall emphasize the project’s philosophy of teamwork and cooperation as goals to achieve a safely constructed project, built on schedule and in accordance with all quality requirements. The Construction Manager will be responsible for preparing comprehensive meeting minutes. 3. Weekly Progress Meetings: Construction Manager is assumed to be present and meet with City staff for the duration of the project at the construction site. The purpose of the weekly meeting is to review the contract status and issues, construction status and issues, schedules, status of Requests for Information (RFIs), change order proposals, submittals and other documentation, and any other issues that need to be resolved. 4. Monthly Progress Meetings: Assume a two (2) hour meeting each month for the duration of the Project to be held at the construction site. The purpose of the monthly progress meeting is similar to the weekly progress meetings but with a broader attendance, including the Design Engineer. 5. Partnering: The CM Team shall participate in regular partnering meetings with the City, Design Engineer, Program Manager, General Contractor, key subcontractors, and other key staff and Project stakeholders. Partnering is anticipated to include an initial 8-hour workshop followed by quarterly 8-hour partnering sessions through the course of construction. The CM Team’s principal, construction manager, assistant/deputy construction manager(s), resident engineers/resident project representatives, startup manager, lead inspectors, and field inspectors shall attend each partnering meeting.. 6. Pre-Construction Scheduling Meeting: The CM shall chair a Pre-Construction Scheduling Meeting with the City and the General Contractor. The scheduling specification requirements and format of the construction schedule will be discussed in detail at the meeting. The objective of the Pre-Construction Scheduling Meeting is to facilitate timely submittal, review and approval of the General Contractor’s Baseline Schedule with as few resubmittals as possible. The CM shall prepare an agenda five (5) business days in advance of the meeting and submit it to the City for review and comment. The CM shall transmit meeting minutes to all attendees within three (3) business days of the meeting. The CM shall assume two (2) hours for the Pre- Construction Scheduling Meeting. 7. Miscellaneous Project Meetings: The CM shall chair additional meetings as required to facilitate the Project work. Additional meetings shall include, at a minimum, shutdown work plan reviews, maintenance of plant operation (MOPO) plan reviews, pre- installation meetings, process instrumentation and control systems (PICS) coordination meetings, and pre-submittal coordination meetings. The CM shall prepare agendas for each meeting three (3) business days in advance for the City’s review and shall record and transmit meeting minutes to all attendees within three (3) business days of each meeting. Packet Pg. 95 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 4 Task 2.3 – Progress Reporting 1. Construction Progress Report: A monthly progress report shall be prepared and submitted to the City and shall include the following elements: a. A summary of the prior month’s main accomplishments and current construction activities. b. Overall contractor’s conformance to contract schedule and quality requirements. c. Identification of key problems, action items, and issues along with recommendation for solutions. d. Summary of progress payments, change orders, disputes, submittals, RFI’s, and notices of noncompliance. e. Photographs of representative project activities. 2. Construction Schedule: The CM shall be principally responsible for reviewing, analyzing, commenting on, and approving the General Contractor’s preliminary schedule, Baseline Schedule, weekly look-ahead schedules, monthly schedule updates, and time impact analyses (TIAs). The CM shall closely monitor the General Contractor’s activities and confirm that the field activities and the duration of those activities match the information presented in the Baseline Schedule. Any deviations must be accurately reflected in the General Contractor’s subsequent monthly update. The CM’s review shall include an analysis of near critical activities and multiple float paths through the schedule to monitor activities that could potentially fall on the critical path and impact Project milestones. The CM’s schedule review procedures shall be described in detail in the CMP. 3. Cost Control System: Establish a cost control system for monitoring and updating the status of the project costs and budget throughout the project. The cost control system shall be computerized and shall integrate cost and schedule. Report no less than once per month on the status of the project cost and budget. The Construction Manager shall coordinate with the City on any variances of the actual cost and budget. Task 2.4 – Project Correspondence Construction Manager shall document all relevant project communications and promptly distribute to the City and applicable parties using Procore. Accurate records and documentation must be maintained and updated by the Construction Manager. All original project documents and final project reports shall be furnished to the City within sixty (60) calendar days following filing of the Notice of Completion. These documents and reports shall also be furnished in electronic format on flash drives. Construction Manager shall maintain field memoranda, transmittals, updated schedules, logs of shop drawings and other submittals, logs of RFIs, change orders, progress payment requests, progress meeting reports, daily inspection reports and all other project correspondence. Packet Pg. 96 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 5 Task 2.5 – Web-Based Document Control System Construction Manager shall utilize the project’s construction management system Procore, and at a minimum, incorporate the following type of information: 1. Project Calendar (Interactive) 2. Document Management: a. Correspondence format that allows the quick generation, recording, and printing of letters to any contact at any company in the database. b. Daily Reports that allow project members to enter information directly from the remote site. Daily reports track construction activities, equipment, field labor, material deliveries, site visitors, safety issues and weather. c. RFI’s can be entered into the system by users and tracked through an approval/response process. d. Transmittal forms shall be customized for the project in a manner acceptable to the City. e. Project meeting notes shall be stored in the system and shall have the ability to be sent electronically to project members. f. Submittals shall have the ability to be transmitted electronically between project members and tracked in a log. g. Drawings shall be stored or uploaded so the most current versions are accessible. Drawings shall be able to be attached for distribution and viewing as well as non-destructive markup using a browser. h. Photos and scanned images from a variety of sources can be displayed on the photo pages or in the reports. i. Punch lists shall be created to allow tracking, sorting, and displaying all punch list items in each project. Task 2.6 – Quality Assurance and Quality Control Plan The CM shall develop a Quality Assurance/Quality Control (QA/QC) Plan with a comprehensive, systematic approach to ensure and document that all elements of the Project are constructed in accordance with the contract documents. The Plan shall include QA/QC policies and procedures for all definable features of work and shall include onsite construction, offsite fabrication of equipment and materials, and startup and commissioning activities. The QA/QC plan shall include forms and checklists to be completed by the CM’s inspection staff to verify conformance with the contract documents and applicable codes. The QA/QC plan shall also include procedures to coordinate with the City’s Community Development Department for inspection of habitable structures and other features of the Project within the jurisdiction of the Community Development Department, procedures to coordinate with the Design Engineer for structural observations, procedures to coordinate with the Geotechnical Engineer of Record for subgrade inspections, and procedures to coordinate with specialty inspectors and materials testing firms to satisfy the requirements of the contract documents. The CM shall include provisions in its proposal to submit a draft and final QA/QC Plan and the final accepted Plan shall be updated as the Project progresses. Packet Pg. 97 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 6 Task No. 3 – Construction Contract Administration: The Construction Manager shall perform the following construction contract administration activities through the City: Task 3.1 – Submittals and Requests for Information (RFI’s) 1. Construction Manager shall receive and create a log for all Contractor RFI’s and submittals. Construction Manager shall review and respond to RFI’s and submittals involving Divisions 0 and 1 in the construction documents and other general items encountered in the field. For the RFI’s and submittals associated with Divisions 2 through 49, the CM shall review them for clarity, completeness, conformance to contract guidelines, and consistency of titling conventions. If additional information is needed, the CM shall coordinate with the Contractor to get the information. Once they pass the QC tests, they shall immediately be transmitted to the Design Engineer. The Construction Manager shall then monitor the Design Engineer review time to ensure it does not exceed the contractual time limits. The Construction Manager shall review the response from the Design Engineer for clarity, completeness, and possible changes in scope and transmit the information to the General Contractor. 2. Construction Manager shall implement a program to ensure the contractor will provide concise RFI’s. 3. Construction Manager and City Program Manager shall review vendor training lesson plans and instruction manuals. 4. Construction Manager shall lead resolution of day-to-day construction issues raised. Coordinate with inspectors, Design Engineer, General Contractor, City Program Manager, and the City as required to reach resolution. Task 3.2 - Contractor’s Change Orders and Disputes Construction Manager shall: 1. Identify, prepare, log, and monitor all contract potential change orders, extra work, change orders, and disputes. 2. Resolve scope of extra work and changes to the contract with the General Contractor and obtain the City’s approval. 3. Prepare written justification, independent schedule impact, and independent cost estimates for each change order and negotiate costs with the General Contractor. Justification shall include: a statement of the extra work or change, detailed description of the extra work or change, independent review of change order cost broken down by labor-equipment-materials, background leading to the issue, a confirmation from Design Engineer that the proposed change order is needed, resolution alternatives and resolution recommendation for action by the City Program Manager. The Construction Manager must submit change orders to the City for approval within five (5) business days of the finalization of negotiations. 4. Assist and support the City in analyzing, responding to, negotiating, and resolving any disputes. The Construction Manager shall report all verbal and written disputes immediately to the City Program Manager and coordinate all disputes with him/her as well. Packet Pg. 98 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 7 5. Coordinate with the Design Engineer, as necessary, regarding their review and analysis of change order requests. The Design Engineer may perform special design services, as necessary, for the analysis of change order requests. Be aware that some Change Orders may require City Council approval. City Council meets the first and third Tuesdays of each month. Items for the agenda must be submitted five (5) weeks earlier. Task 3.3 – Design Clarifications Construction Manager shall identify the need for design clarifications through Information Bulletins, and request preparation of design clarification to be performed by Design Engineer. Construction Manager shall log and monitor all design clarifications. Task 3.4 – Progress Payments Construction Manager shall review General Contractor’s monthly payment request and make a written recommendation for payment to be made by the City. The Construction Manager shall ensure that the payment request meets the requirements of all project funding sources. The Construction Manager shall develop a system to forecast the City’s cash flow needs based on invoices processed for payments to Contractor, and invoices processed for reimbursement from funding source(s) to the City. The Construction Manager must process progress payments using the City’s standard format, or amended as needed based on the project funding source. Task 3.5 – Record Drawings Construction Manager shall coordinate the development of record drawings. The General Contractor’s record drawings shall be reviewed on a weekly basis, and ensure that the record drawings identify RFI’s, shop drawing revisions, change order modifications, etc. The CM shall review the contractor’s record drawings at the end of each month prior to approving the contractor’s monthly progress payment request. The Construction Manager shall review, approve, and submit record drawings to the Design Engineer at 100 percent construction completion for the Design Engineer to develop reproducible record drawings. Task 3.6 – Operations and Maintenance Manuals Construction Manager shall coordinate the preparation of Operation and Maintenance Manuals (OMMs) as provided by the Design Engineer and the General Contractor. Construction Manager shall verify the number and content of the manuals to be complete and accurate based on the completed work. The Design Engineer will submit a draft OMM (outline form only) when the construction work is approximately 50 percent complete, and a draft OMM will be submitted approximately one month prior to Substantial Completion. Each OMM prepared by the Design Engineer is planned to include, but not be limited to: Catalog cuts on equipment, factory test reports, recommended list of spare parts, maintenance schedules, list of suppliers and phone numbers, electrical wiring diagrams and programming ladder logic printouts, and a list of special equipment requirements and precautions. Packet Pg. 99 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 8 Task 3.7 - Project Start-up and Commissioning Construction Manager shall provide all efforts required to inspect and monitor the Contractor’s work for commissioning and start-up of all individual systems, as well as overall plant start-up. The Construction Manager will coordinate and lead the efforts of the Joint Test Group (JTG). The Design Engineer will review the testing and start-up plan provided by the Contractor and coordinate the start-up and testing of the facilities. The Design Engineer will provide field assistance to the City and Construction Manager during the following start up and testing activities: Factory Demonstration Testing; Vendor/Manufacturer Testing of Equipment; 8-hour equipment Functional Testing; Operational Testing (unit process or system testing); Membrane testing and start-up; and 7-day clean water testing; or as amended in the final plans and specifications. In addition to the Design Engineer, the CM shall perform a comprehensive review of the General Contractor’s start-up and commissioning plan and provide review comments. The CM shall lead the Joint Test Group (JTG) meetings with representatives from the City, Design Engineer, General Contractor, Program Manager, key subcontractors, and key equipment suppliers. Task 3.8 - Project Closeout Construction Manager shall prepare detailed project punch lists at substantial completion of the project. Coordinate the correction of deficiencies, schedule, coordinate, and conduct a final walk-through with the Design Engineer, City Program Manager, and the City prior to the acceptance of work. The following task must be completed during project closeout: 1.File the Notice of Completion. 2.Check and submit final payment requests from the Contractor following filing of Notice of Completion. 3.Review and certify that the Contractor’s project record drawings are complete and accurate. 4.Compile and submit operation manuals, maintenance manuals, instruction manuals, parts lists, spare parts, and warranties for equipment procured as required by the contract documents. 5.Prepare a Warranty Expiration spreadsheet for the project. This spreadsheet should contain major equipment items and be broken down into specific process areas and include a Product Name, Manufacturer, Serial Number, Warranty Period and Warranty Expiration Date for each piece of equipment. Provide the spreadsheet data in an electronic format. 6.Coordinate operator training for use of any specialty equipment. 7.Prepare a final executive summary report which provides a complete overview of the contract, Contractor’s performance, accomplishments, a comparison of preliminary and final project costs, cash flows, schedules, and recommendations for alleviating design, construction management, and construction problems experienced on the project, within sixty (60) calendar days following the filing of the Notice of Completion. Packet Pg. 100 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 9 8. Furnish all original project documents and final project reports to the City within sixty (60) calendar days following filing of the Notice of Completion. Provide the City support for processing final paperwork following Notice of Completion. Project documents shall be delivered to the City in form and fashion acceptable to the City. Deliver the original project documents to the City in storage boxes with all documents labeled in accordance with the project filing system and in standard file folders developed by Construction Manager and approved by City. Files are to be placed in boxes by sequential file number. Prepare a sheet for each box listing the contents. Deliver the electronic files and documents created during the project on flash drives labeled with the project name. Task 3.9 – Risk Management The CM shall develop a risk management strategy and shall develop and maintain a comprehensive Project Risk Registry. The Project Risk Registry shall include a description of each risk, potential cost and schedule impacts, probability of occurrence, responsible party, mitigation measures, and current status. The Project Risk Registry shall be updated on a weekly basis and shall be reviewed in each monthly progress meeting. Task 3.10 – Safety The CM shall promote safety awareness and culture of safe work practices on the project. The Consultant shall review the construction contractor’s Injury and Illness Prevention Plan (IIPP) and Job Hazard Analyses (JHAs) for content and completeness. The CM shall implement a comprehensive IIPP for its own staff and shall comply with the contractor’s safety requirements when present in the contractor’s work areas. The CM shall coordinate with the Contractor to provide safe access for the City staff to conduct their various duties. Task 3.11 – Mitigation Monitoring and Reporting Program (MMRP) The Construction Manager will serve as the Project Mitigation Monitoring and Reporting Coordinator and shall be responsible for ensuring that the mitigation measures detailed in the MMRP are complied with during implementation of the Project. In addition, the Construction Manager shall be responsible for ensuring compliance with the air quality mitigation measures and conditions of approval detailed in the MMRP. The CM shall coordinate with the City, the Program Manager, and third-party consultants to facilitate compliance with the worker training, monitoring, and mitigation requirements in the MMRP. Task No. 4 – Inspection Services and Materials Testing: Construction Manager shall provide inspection services and materials testing including but not necessarily limited to the following: Task 4.1 - Construction Inspection 1. Provide inspection by qualified inspectors (including civil, mechanical, electrical, instrumentation and controls disciplines) to ensure that the Contractor’s work follows the contract documents. Special inspection must be provided for special items, and the inspectors must be fully certified and qualified to perform work pursuant to Code and regulatory requirements. Perform technical inspection at the jobsite or off-site of materials and workmanship in accordance with the Contract Documents. The inspectors shall not authorize extra work or approve of work that deviates from the Contract Packet Pg. 101 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 10 Documents. 2.Review Contractor’s three week “look ahead” schedules and coordinate inspection staffing needs. 3.The CM Team will be responsible for all required reporting for the project as described in the Mitigation Monitoring and Reporting Plan (MMRP) and will be required to delegate responsibilities to contractor where appropriate through the contract specifications; see Appendix 4 for MMRP. 4.The CM Team shall coordinate with the City’s Community Development Department to satisfy the inspection requirements included in the contract documents. The CM Team shall coordinate with the Design Engineer to perform structural observations at the specified stages of construction. The CM Team shall coordinate with the Geotechnical Engineer to perform subgrade inspections and other inspections required in the contract documents. Task 4.2 – Daily Construction Photos Electronically photo-document ongoing construction daily. Prepare written description for each digital photo and provide documentation. Save all daily photos electronically in Procore with all photos identified by a detailed and descriptive file name in a manner to only be accessed by City staff or authorized agent. This database shall be turned over to the City at the completion of the construction contract. Task 4.3 - Inspection Reports Prepare and submit inspector’s daily reports, and review the format and content prior to submitting to Procore in a manner to only be accessed by City staff or authorized agent. Prepare daily reports of the construction activities including weather conditions, General Contractor’s equipment and labor, work performed, materials used, site visitors, note delays in work and reasons for the delays, and deficiencies. Prepare daily reports of deviations and non- conformance to specifications and provide a timely response. Task 4.4 – Materials Testing and Specialty Inspection The Construction Manager will be responsible for material and soil sampling, field analysis, laboratory testing, and all specialty field inspections (i.e., welding, roofing, structural steel, coatings, high strength bolting, etc). The Construction Manager will coordinate these services, review testing results, and transmit the testing or inspection reports, findings or other related information to the various project stakeholders. The Construction Manager shall include an allowance in its fee proposal for the provision of materials testing and specialty inspection services. Coordination of factory testing is the responsibility of the Construction Manager. The Construction Manager will coordinate these activities with the Design Engineer and General Contractor, and review results prior to transmitting test results to the various Project members. Task 5 – Ultraviolet (UV) Disinfection System Oversight and Advisory Services (Allowance) The Construction Manager will provide UV disinfection system oversight and advisory services during the pre-construction, construction, and startup and commissioning phases on an as- needed basis. Services shall include, at a minimum, the following: Packet Pg. 102 Item 3 Water Resource Recovery Facility Project Construction Management and Inspection Services Scope of Work Specification No. 91363CM Page 11 1. UV System Design Review – The Construction Manager’s UV specialist will review the specifications and drawings related to the UV system and provide comments and recommendations for inclusion in the final bid package. The review will include, at a minimum, the UV system specification, influent hydraulics, control strategies, startup and testing requirements, instrumentation and controls. The Construction Manager shall will prepare a draft and final memorandum detailing the results of its review. Comments received from the City and the Program Manager will be reviewed and incorporated into the final memorandum. 2. UV System Submittal Review – The Construction Manager’s UV specialist will review the initial UV system submittal and subsequent resubmittals and provide review comments. 3. Factory Acceptance Testing – The Construction Manager’s UV specialist will review the factory acceptance test (FAT) procedures proposed by the manufacturer and provide review comments. Upon request by the City, the UV specialist shall attend and participate in the FAT. The UV specialist will review the equipment supplied to ensure it is compliant with the specifications and drawings as well as review the control functionality that is programmed into the master control panel that controls the entire UV system. The UV specialist will prepare a report detailing the findings and results during the FAT and any observed deficiencies that must be corrected prior to the equipment being shipped to site or prior to startup. 4. UV System Startup and Commissioning a. Startup Plan – The Construction Manager’s UV specialist will participate in the Joint Test Group (JTG) meetings and assist in the development of the startup, commissioning, and validation plan for the UV system. b. UV System Startup – Upon request by the City, the Construction Manager’s UV specialist will participate in the UV system field startup and commissioning to ensure the system is in compliance with the plans and specifications and that testing is performed in accordance with the approved test plan. Field services will include a review of the control system to ensure the system responds properly to normal and abnormal operating conditions. c. Checkpoint Bioassay – The Construction Manager’s UV specialist will oversee the Checkpoint Bioassay. The Construction Manager’s UV specialist will review the Checkpoint Bioassay protocol and the draft report to ensure it complies with the Ultraviolet Disinfection Guidelines for Drinking Water and Water Reuse, 3rd edition, published by the National Water Research Institute (NWRI) in collaboration with the Water Research Foundation (NWRI and WRF, 2012). The Construction Manager’s UV specialist will provide written comments to the Checkpoint Bioassay protocol, the draft report, and the final report. 5. Meetings – The Construction Manager’s UV specialist shall participate in meetings with the City, the Program Manager, the UV system manufacturer, the contractor, and the Construction Manager upon request by the City. The allowance shall not be used without express written direction from the City in advance of performing any work billable to this task. Exhibit A – Organization Chart Packet Pg. 103 Item 3 Packet Pg. 104 Item 3 CITY OF SAN LUIS OBISPO WATER RESOURCE RECOVERY PROJECT COST PROPOSAL ALL FACILITIES INCLUDED PI C Mi c h a e l W a r r i n e r Co n s t r u c t i o n Ma n a g e r ( C M ) St e v e E a r p As s i s t . C M Ro b e r t N o c o n Ci v i l / m e c h a n i c a l In s p e c t o r 1 Ti m V a n d a m m e Ci v i l / m e c h a n i c a l In s p e c t o r 2 Ro b e r t C a r l o n El e c t r i c a l a n d I & C In s p e c t o r Jo h n B e n u s i k Ca r o l l o L a b o r Ho u r s Ca r o l l o L a b o r F e e Ex p e n s e s Ca r o l l o F e e Re s i d e n t En g i n e e r Ka t h y R o b i n s o n (M E G ) St a r t u p a n d Co m m i s s i o n i n g Ca r o l o S a n c h e z (M E G ) Fi e l d C l e r k Ca l P o l y I n t e r n (M E G ) Rate 265$ $ 199 $ 183 $ 170 $ 155 $ 159 $ 150 $ 178 $ 57 Task 1 Pre-Construction Services Subtotal 50 190 130 0 0 0 370 74,850$ 15,074$ 89,924$ 0 0 35 Task 2 Project Management Subtotal 225 1330 810 460 170 270 3265 620,005$ 111,418$ 731,423$ 940 0 228 Task 3 Construction Contract Administration Subtotal 380 4070 5120 855 585 615 11625 2,181,400$ 363,864$ 2,545,264$ 3940 1600 137 Task 4 Inspection Services and Materials Testing Subtotal 0 710 180 4765 1805 4395 11855 1,962,860$ 327,410$ 2,290,270$ 1240 0 0 Task 5 UV Support and Consulting Services Subtotal 40,000$ Totals 655 6300 6240 6080 2560 5280 27115 4,839,115$ 817,766$ 5,696,881$ 6120 1600 400 Carollo Budget 5,696,881$ Notes: Subconsultants 1,520,300$ 1. Budget is based upon a 36 month effort construction schedule starting in March 2019. Preconstruction support is included. Mark-up on subconsultants 82,119$ 2. Construction field offices, utilities, and field equipment to be supplied by others Material Testing Services 400,000$ 3. Budget assumes no special inspections other than those shown on drawings. Work is based on 8 hr days, 40 hr weeks. Markup on Material Testing Services 40,000$ 4. Other Direct Costs (ODCs) are billed at Cost plus 10% markup. Travel and Subsistence is billed as actual cost only. Escalation (3 years at 3% per year starting January 2019)546,152$ 6. Material testing costs are provided as an estimate only. Final costs will be based upon contractor's actual work and producivity. TOTAL FEE 8,285,452$ xacket xgP REi Item 3 CITY OF SAN LUIS OBISPO WATER RESOURCE RECOVERY PROJECT COST PROPOSAL ALL FACILITIES INCLUDED Mi m i a g a En g i n e e r i n g Gr o u p H o u r s Mi m i a g a En g i n e e r i n g Gr o u p L a b o r F e e E x p e n s e s Mi m i a g a En g i n e e r i n g Gr o u p F e e Ma r k u p Co s t e s t i m a t o r Ro b M i y a j i m a Sc h e d u l e r Ro b S p r i n g e r CM S o l u t i o n s Ho u r s CM S o l u t i o n s La b o r F e e Ex p e n s e s CM S o l u t i o n s F e e Ma r k u p To t a l H o u r s p e r Ta s k $ 155 $ 155 35 1,995$ 188$ 2,183$ 120$ 0 0 0 -$ -$ -$ $0 405 1168 153,996$ 633$ 154,629$ 9,645$ 82 64 146 22,630$ 606$ 23,236$ $1,268 4579 $0 5677 883,609$ 3,869$ 887,478$ 46,374$ 818 856 1674 259,470$ 6,954$ 266,424$ $14,392 18976 $0 1240 186,000$ 350$ 186,350$ 10,320$ 0 0 0 -$ -$ $0 13095 8,120$ 1,225,600$ 5,040$ 1,230,640$ 66,459$ 900 920 1820 282,100$ 7,560$ 289,660$ 15,660$ 37055 xacket xgP REc Item 3 Meeting Date: 9/18/2018 FROM: Michael Codron, Community Development Director Prepared By: Doug Davidson, Deputy Director SUBJECT: ADOPTION OF AN ORDINANCE APPROVING THE COMPREHENSIVE UPDATE TO THE CITY’S ZONING REGULATIONS (TITLE 17) OF THE MUNICIPAL CODE AND ASSOCIATED ZONING AMENDMENTS RECOMMENDATIONS 1. Adopt an ordinance repealing and replacing Title 17 of the Municipal Code (Zoning) to implement the Land Use and Circulation Element (LUCE), including the adoption of an Initial Study/Negative Declaration, GENP-1327-2017 (Attachment A); and 2. Adopt an ordinance approving amendments to Ordinance 1130 (1989 Series) modifying the design criteria, Section 5, south side of Monterey Street between 1603 and 2223 Monterey Street, CODE-1630-2018 (Attachment D); and 3. Adopt an ordinance ame nding the City’s Zoning Map to designate an approximately 20.2- acre portion of the R-1/C/OS Zone on the west side of Broad Street, south of Serrano Drive as R-1/C/OS-S, Low Density Residential/Conservation and Open Space Zone with a Special Considerations Overlay Zone, 159/161 Broad Street and 141 Bressi Place, RZ-1629-2018 (Attachment E). DISCUSSION Comprehensive Zoning Update On August 21, 2018, the City Council voted 5-0 to introduce an ordinance which comprehensively updates the City’s Zoning Regulat ions, Title 17 of the City’s Municipal Code. In addition to this action, the Council provided direction that the following items be further reviewed and brought back to Council after the Planning Commission has provided a recommendation: 1) Tiny Homes – Reduce the size from 450 sq. ft. (possibly 300 sq. ft. without counting the loft), requiring a Director’s action for design review. 2) Accessory Dwelling Unit (ADU) Lot Coverage Requirement – Consider reducing the lot coverage exemption for an ADU from 450 sq. ft. to 300 sq. ft. (consistent with the size of a Tiny Home). 3) Owner Occupancy - Consider excluding the owner occupancy requirement for ADUs in the R-3 and R-4 zones. 4) Child Care Facilities - Implement new State law to provide the ability to include child care facilities in affordable housing projects. 5) Climate Action Plan (CAP) - Further implement the (CAP) by requiring installation of EV-capable parking spaces in new developments or significant remodels/additions. Packet Pg. 107 Item 4 The Zoning Regulations Ordinance will become effective 30 days after its adoption. Modifications to Ordinance 1130 On August 21, 2018, the City Council voted 5-0 to introduce an ordinance which revises Ordinance 1130 to implement Land Use Element policy 8.3. The modifications to the ordinance will become effective 30 days after its adoption. Rezone North Broad Street (Bressi) S-Overlay On August 21, 2018, the City Council voted 5-0 to introduce an Ordinance for the rezone of property located along North Broad street to include a Special Considerations (S) Overlay. The ordinance will become effective 30 days after its adoption. Downtown Overlay Zone (CR Zone of Downtown Core from Santa Rosa to Pepper St.) On August 21, 2018, the City Council voted 5-0 to direct staff to take this proposed Overlay zone back to the Planning Commission for further review, specifically to include a requirement for approval of a Development Agreement (DA) for any project proposing to take advantage of increased height (above 45 feet). The Council’s motio n included the provision that additional workforce and affordable housing opportunities in the project be incorporated into the DA. This will be packaged together with the items noted above for further review by the Planning Commission, tentatively schedu led for October 10, 2018, with the Council meeting following on November 27, 2018. ALTERNATIVE Modify the Proposed Ordinances – The Council may make minor, non-substantive changes to the proposed Ordinances for staff to incorporate into the final docume nts. Any material changes to the Final Ordinances would require further review by staff and the Planning Commission followed by re-introduction of the Ordinance(s) by the Council. Attachments: a - Draft Ordinance - GENP-0327-1027 (Zoning) b - Council Reading File - Exhibit A to Attachment a (Initial Study) c - Council Reading File - Exhibit B to Attachment a (Zoning Regs) d - Draft Ordinance - CODE-1630-2018 (Ordinance 1130 Modifications) e - Draft Ordinance - RZ-1629-2018 (Bressi Rezone S-Overlay) f - Exhibit A to Attachment e (Map) Packet Pg. 108 Item 4 ORDINANCE NO. 1650 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA REPEALING AND REPLACING TITLE 17 OF THE MUNICIPAL CODE (ZONING REGULATIONS) TO IMPLEMENT THE LAND USE AND CIRCULATION ELEMENT (LUCE), CLARIFY AND ADVANCE CITY GOALS AND POLICIES, PROVIDE INTERNAL CONSISTENCY, AND TO RE-ORGANIZE THE ZONING CODE, INCLUDING THE ADOPTION OF A NEGATIVE DECLARATION OF ENVIRONMENTAL REVIEW, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED AUGUST 21, 2018 (ZONING REGULATIONS, GENP-0327-2017) WHEREAS, the City Council of the City of San Luis Obispo conducted a series of public hearings in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on October 21, 2014, December 2, 2014, and December 9, 2014, for the purpose of final adoption of the Land Use and Circulation Element update project (LUCE) Resolution No. 10586 (2014 Series); and WHEREAS, on July 5, 2016, the City Council reviewed the Zoning Regulations Update scope of work, approved the project budget, and authorized issuance of a Request for Proposals (RFP) for consultant services; and WHEREAS, the City Council and Planning Commission of the City of San Luis Obispo conducted a joint public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on April 12, 2017, for the purpose of providing direction to the Community Development staff on particular issues to address during the Zoning Regulations Update process; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on April 10, 2018, for the purpose of providing policy direction regarding key issues; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a series of regular public hearings in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California from August 23, 2017, through May 23, 2018 and final hearings on June 13, 2018, June 14, 2018, and June 27, 2018, for the purpose of recommending amendments to Title 17 of the Municipal Code to implement the LUCE; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on August 21, 2018, for the purpose of introducing an Ordinance for the comprehensive update to the Zoning Regulations; and WHEREAS, City staff has conducted extensive public outreach in the form of news releases, stakeholder interviews, regular ly scheduled public hearings with the Planning Commission, and two community workshops held on June 3, 2017 and May 3, 2018; and Packet Pg. 109 Item 4 Ordinance No. _____ (2018 Series) Page 2 O ______ WHEREAS, after review of the information gathered by staff during public outreach and public hearings, staff recommends the draft amendments to Tile 17 of the Municipal Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the Commission makes the following finding: 1. The Zoning Regulations Update comprehensively implements many policies and programs of the LUCE. As represented in the staff report, additional follow up actions are needed in order to further implement LUCE policies and programs not addressed by this Zoning Code Update. 2. The proposed amendments to Title 17 will not cause significant health, safety, or welfare concerns, since the amendments are consistent with the General Plan and directly implement City goals and polices. SECTION 2. Environmental Review. Pursuant to CEQA, the City prepared an Initial Study/Negative Declaration (IS/ND) to evaluate the potential environmental effects of the proposed Zoning Regulations Update, as set forth in Exhibit A. This IS/ND addresses all environmental issues listed in Appendix G of the State CEQA Guidelines. As the Zoning Regulations Update is consistent with the 2014 LUCE, the IS/ND tiers with and incorporates, by reference, the City’s previously certified Program Environmental Impact Report [EIR] (September 2014) prepared for the LUCE pursuant to State CEQA Guidelines Sections 15150 (Incorporation by Reference),15152 (Tiering), and 15168 (Program EIR). The 30-day public review period for the IS/ND ran from June 20, 2018 to July 19, 2018 and no public or agency comments were received. Based on the analysis provided within the IS/ND, the City has concluded that adoption of the Zoning Regulations Update would not result in new significant impacts on the environment that have not been previously examined or adequately addressed in the LUCE EIR. No new mitigation measures would be required, and mitigation measures that were adopted for the LUCE EIR continue to remain applicable, as such measures were incorporated into the General Plan following City Council’s adoption of the LUCE. SECTION 3. Action. The City Council hereby repeals and replaces, in its entirety, Title 17 (Zoning) of the San Luis Obispo Municipal Code as set forth in Exhibit B attached hereto and incorporated herein. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions , paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable Packet Pg. 110 Item 4 Ordinance No. _____ (2018 Series) Page 3 O ______ SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at t he expiration of thirty (30) days after its final passage. INTRODUCED on the ___ day of ___, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ___, 2018, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 111 Item 4 O ______ ORDINANCE NO. 1651 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING ORDINANCE NO. 1130 (1989 SERIES), MODIFYING THE DESIGN CRITERIA, SECTION 5 (CODE- 1630-2018; SOUTH SIDE OF MONTEREY STREET BETWEEN 103 AND 2223 MONTEREY, INCLUSIVE) WHEREAS, on February 7, 1989, the City Council of the City of San Luis Obispo adopted Ordinance 1130, amending the official zoning map from C-T to C-T-S for properties on the south side of Monterey Street between 1603 and 2223 and amending the official zoning map to expand the C/OS-5 zone along San Luis Creek Drive between Monterey Street and San Luis Drive ; and WHEREAS, Ordinance 1130 (1989 Series) established design criteria for any new development or use or expansion of any existing development or use within the C -T-S zone; and WHEREAS, the Land Use Element of the City’s General Plan, Program 8.3, calls for the City to review and update Ordinance 1130 and involve residents to ensure tha t neighborhood concerns are addressed ; and WHEREAS, City staff has coordinated review of possible changes to Ordinance 1130 with residents of the adjacent San Luis Drive neighborhood ; and WHEREAS, the Planning Commission of the City of San Luis Obispo co nducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on June 27, 2018 for the purpose of considering amendments to ordinance NO. 1130; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on August 21, 2018, for the purpose of introducing an Ordinance for the amendment to Ordinance No. 1130; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Review. Based upon all the evidence, the Planning Commission recommends that the City Council adopt the Initial Study / Negative Declaration as prepared for the comprehensive Zoning Regulations Update (GENP-0327-2018). The initial study addresses all environmental issues listed in Appendix G of the State CEQA Guidelines, and tiers with and incorporates, by reference, the Land Use and Circulation Element Final Program Environmental Impact Report pursuant to State CEQA Guidelines Sections 15150 (Incorporation by Reference), 15152 (Tiering), and 15168 (Program EIR). SECTION 2. Action. The City Council of San Luis Obispo herby amends the Ordinance 1130 to replace the design criteria (previously referred to as Section 5) with following criteria described below. Packet Pg. 112 Item 4 Ordinance No. _____ (2018 Series) Page 2 O ______ SECTION 3. Land Use and Design Criteria. That any new development or use or expansion of any existing development or use approved after the effective date of this ordinance shall be subject to the following design criteria: 1. All new structures approved after adoption of this ordinance shall be setback a minimum 20 feet from the existing top of creek bank o r edge of riparian vegetation, whichever is farther from the creek flow line (subsequently called the “creek setback reference line”). The setback area may be occupied by landscaping and fencing. No new facilities for parking, active recreation or noise generating equipment may occupy the creek setback area. 2. The number and size of building openings facing the creek shall be minimized. Windows shall be no larger than the minimum required by public safety. Glazing shall not reflect sunlight toward the creek nor allow internal lighting to shine toward the creek. Balconies and/or attendant doors are prohibited. 3. Screening shall be provided between the buildings and the creek which may include fencing, decorative walls and landscaped berms, said screening shall at a minimum include restoration and enhancement of the creekside vegetation, and shall also be designed and built so as to block view corridors of the building visible from residential neighbors. 4. Lighting between the buildings and the creek shall be limited in intensity and scale to the minimum necessary for security and identification and shall be designed so as not to shine offsite. 5. The expansion or redevelopment of properties shall make maximum use of common driveways. 6. All new uses must be found by the Planning Commission to be compatible with the riparian habitat and adjacent residential uses, considering such variables as light and glare, privacy, noise and traffic. In all cases, uses shall be adequately buffered from the creek and adjacent residences in a manner which mitigates potential offsite impacts. 7. Noise generating uses such as parking and active outdoor recreation uses, such as swimming pools, outdoor bars, and gathering areas shall be located on the interior of the site, using buildings as a buffer. 8. All drainage to the creek shall be directed in a manner which does not erode the creekba nk, harm the creekside vegetation or degrade the quality of the creek and its riparian habitat. Appropriate systems may include the use of debris and rubbish screens, oil and grease traps and erosion control/energy dissipaters subject to the approval of t he City Engineer and the State Department of Fish and Wildlife. 9. Building height shall be restricted as follows: a) Between 20 and 50 feet, of the creek setback reference line, maximum height shall be 25 feet. Packet Pg. 113 Item 4 Ordinance No. _____ (2018 Series) Page 3 O ______ b) Between 50 and 80 feet of the creek setback reference line, maximum height shall be 35 feet. c) Beyond 80 feet from the creek setback reference line, maximum height shall be 45 feet. 10. Grading within the creek setback area shall be limited to that necessary to stabilize the creekbank and to accommodate landscaping, and shall be done in a manner which does not increase erosion of the creekbank or result in the removal of or significant damage to creekside vegetation. 11. As a condition of every new use established or expansion of existing use, that portion of a commercial lot which lies within the C/OS-5 zone shall be dedicated as a perpetual open space easement. 12. In special circumstances, the Planning Commission may lower the height and/or increase the setback standards established by this ordinance . 13. The revised C/OS-5 boundary and design criteria contained in this ordinance shall be recorded and referenced on the title of all affected parcels. 14. The creekside setback area and/or the area beneath the high berm on the creekside shall not be used for a public or urban trail. 15. Any structure that functions primarily as a conference or convention center shall not be allowed. Meeting and conference rooms ancillary to other approved uses are allowed. Rooms whose primary use is for social gatherings (ballrooms, etc.) shall not be located creekside. 16. Openings associated with and resulting from underground, ground, or above ground parking, oriented toward the creek or that occur on the sides of the structures within 100 feet of the creek setback reference line are prohibited. 17. During all stages of planning and building, design and engineering plans and over -the- counter- changes to the approved plans and permit shall be a matter of public record (as defined in California Government Code Section 6520), shall be noted on the official packet of material, and shall be readily available to the public upon demand. 18. Any new proposal or significant alteration to an existing development shall be subject to a use permit approved by the Planning Commission. In approving a use permit, the Planning Commission shall find that the proposed conforms to all the criteria listed in Section 3. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted Packet Pg. 114 Item 4 Ordinance No. _____ (2018 Series) Page 4 O ______ irrespective of the fact that any one or more subdivisions , paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ___ day of ___, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ___, 2018, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 115 Item 4 O ______ ORDINANCE NO. 1652 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S ZONING MAP TO DESIGNATE APPROXIMATELY 20.2 ACRES WITHIN THE R-1 AND C/OS-20 ZONES ON THE WEST SIDE OF BROAD STREET, SOUTH OF SERRANO DRIVE, AS R-1-S, LOW-DENSITY RESIDENTIAL ZONE AND C/OS-S-20, CONSERVATION/OPEN SPACE WITH A SPECIAL CONSIDERATIONS OVERLAY (RZ-1629-2018; 159 & 161 BROAD STREET AND 141 BRESSI PLACE) WHEREAS, the Planning Commission of the City of San Luis Obispo, conducted a public hearing on September 23, 2015, to review of Minor Subdivision 32 -14 and identified concerns related to possible future development on the remainder parcel of the subdivision, the property known as 159 & 161 Broad Street and associated adjacent properties previously known as Bressi Ranch; and WHEREAS, the Planning Commission requested that staff evaluate the possibility of designated the area as a sensitive site and adding a special consideration overlay to the properties, to ensure impacts related to hillside development, identified wildlife corridor, and creek protection are properly evaluated for any proposed new development; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on June 27, 2018; continuing the project to July 11, 2018 to revise the project to include the C/OS-20 portions of the property; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on Ju ly 11, 2018 for the purpose of considering amendments to the City’s Zoning Map to designate approximately 20.2 acres within the R-1 and C/OS-20 zones on the west side of Broad street, south of serrano Drive, as R-1-S, Low-Density Residential zone with a Special Considerations Overlay and C/OS-S-20, Conservation/Open Space with a Special Considerations Overlay, and making recommendations to the City Council regarding such amendments; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on August 21, 2018, for the purpose of introducing an ordinance for the rezone of the prop erty; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Review. Based upon all the evidence, City Council adopt s the Initial Study / Negative Declaration as prepared for the comprehensive Zoning Regulations Update (GENP-0327-2018). The Initial Study addresses all environmental issues listed in Appendix G of the State CEQA Guidelines, and tiers with and incorporates, by reference, the Land Packet Pg. 116 Item 4 Ordinance No. _____ (2018 Series) Page 2 O ______ Use and Circulation Element Final Program Environmental Impact Report pursuant to State CEQA Guidelines Sections 15150 (Incorporation by Reference), 15152 (Tiering), and 15168 (Program EIR). SECTION 2. Findings. Based upon all the evidence, the Council makes the following findings: 1. The proposed “S” overlay zoning will assure that any new development or use of the site will be subject to a Conditional Use Permit to be reviewed by the Planning Commission to address the special considerations for the site which are: protection of the wildlife habitat and corridors, preservation of hillside open space, geological constraints including slope stability and grading, aesthetic concerns of visually prominent sites, creek protection, and fire protection issues. SECTION 3. Action. The City Council of San Luis Obispo herby amends the City’s Zoning Map to designate the property as depicted in Exhibit A attached hereto and incorporated herein, to be R-1-S, Low-Density Residential, and C/OS-S-20, Conservation/Open Space with a Special Considerations Overlay. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions , paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ___ day of ___, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ___, 2018, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: Packet Pg. 117 Item 4 Ordinance No. _____ (2018 Series) Page 3 O ______ ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 118 Item 4 BR O A D SERRANO M I S S I O N B R E S S I PA L O M A R MURRAY MISSION R-1 C/OS-20 R-1 R-1 R-1 R-1 R-1-PD R-1 R-1 R-1 R-1 R-1 Exhibit - A RZ-1629-2018 Rezone from R-1 to R-1-S &C/OS-20 to C/OS-S-20 ¯ Packet Pg. 119 Item 4 Page intentionally left blank. Packet Pg. 120 Item 4 Meeting Date: 9/18/2018 FROM: Greg Hermann, Interim Deputy City Manager and Christine Dietrick, City Attorney Prepared By: Teresa Purrington, City Clerk SUBJECT: BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF INTEREST CODE RECOMMENDATION Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California amending the City’s Conflict of Interest Code.” DISCUSSION The Political Reform Act (PRA) of 1974 contains a general prohibition that “no public official or employee at any level of state or local government shall make, participate in making or in any way attempt to use his/her official position to influence a governmental decision in which s/he knows or has reason to know s/he has a financial interest.” The PRA requires that local agencies adopt a formal Conflict of Interest Code, review its Code biennially, and make amendments, if needed. The Conflict of Interest Code was last review by the City Council in December 2016. A Conflict of Interest Code requires certain employees, who are most likely to be involved in government decision-making and where potential conflicts may be present, to file an annual disclosure form. The purpose of this form is to inform the employee and the public of potential conflicts of interest and situ ations where disqualification is mandated. The only change to the Conflict of Interest Code since the last review in 2016 was the increase in the total value of gifts from any single source from $460 to $470. Proposed amendments to the Code are reflected in the attached Resolution (Attachment A) Terms of the Code The FPPC advises that agencies are required to incorporate the provisions of California Code of Regulation §18730 by reference, along with appendices providing disclosure categories and listing of designated positions, to constitute the formation and promulgation of a conflict of interest code. Regulation §18730 outlines the references to statutes and regulations that govern designated positions, disclosure categories, time of filing, contents of, period covered, manner of reporting, how interests are to be reported, definition of terms, disqualification as well as prohibition on receipt of honoraria, gifts, loans, and travel payments. The incorporation of Regulation §18730 provides the legal basis for the code to be a document that has force and effect. The Commission notes that the responsibility for determining if a code meets the specifications of Gov’t Code §89309 rests with the code reviewing body (i.e. City Council). Packet Pg. 121 Item 5 Proposed Disclosure Categories The Fair Political Practices Commission (FPPC), the agency assigned to administer and interpret the PRA, has provided guidance, instructions and “model” disclosure categories to assist in the review of the conflict of interest codes. Disclosur e categories have been drafted with the intent to narrowly tailor categories toward an employee’s duties and area of authority (Attachment B). The FPPC has provided advice related to the development of disclosure categories and the need for “striking an appropriate balance between heading off potential conflicts of interest and an individual’s right to privacy.” The Commission notes that the most common problem in local codes is the requirement that employees disclose financial interests that are not relat ed to the employee’s duties and area of authority. Utilizing the FPPC’s “model” disclosure categories and examples from other agencies, proposed disclosure categories 2 -4 specify that employees need only disclose financial interests related to their job assignments or areas of authority. There have been no changes to the Disclosure Categories since the last review which was done in December 2016. Proposed Designated Positions The FPPC advises that local codes should enumerate positions that “make or part icipate in the making” of government decisions, acting within the authority of his or her position, votes on a matter, obligates, or commits the agency to any course of action which may foreseeably have a material financial effect on any financial interest . Additionally, it further defines that employees “participate in governmental decisions” when - acting within the authority of his or her position and without significant and substantive or intervening review - the official negotiates, advises, or makes recommendations to the decision-maker regarding the governmental decision. The FPPC advises that local codes that require disclosure of economic interests have been found to be appropriate when they are narrowly tailored, noting that manual, clerical, or m inisterial positions should not be designated. A staff level review of the current list of designated positions has been completed and a summary of positions to be added, removed, or have substitute titles are identified in Attachment C. The List of Designated Positions has been revised and positions have been assigned disclosure categories to match job assignments and areas of authority (Attachment D). Regardless of whether a position is designated, all City employees are mandated to disqualify him/herself from participation in a decision, when acting in the authority of the position, if there would be a financial interest. Council Members and appointed officials (including the City Manager, City Attorney and members of the Planning Commission) are not des ignated employees under this conflict of interest code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”). The conflicts of interest code supplements those statutory requirements as to employees and members of City advisory bodies who are not 87200 filers. It is important to note that the list of filers includes members of the San Luis Obispo Parking Authority and the San Luis Obispo Public Financing Authority. Because the City Co uncil also serves as both authorities, members of the Council are reminded to include these positions on their Assuming, Annual and Leaving Statements of Economic Interest. Packet Pg. 122 Item 5 New Positions With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties. Determinations shall be made in writing and provided to the City Clerk and the Human Resources Department. Such written determination shall include a description of the newly created position's duties and, based upon that description, a statement of the extent of disclosure requirements appropriate given the range of duties. All such determinations are public records and shall be retained for public inspection in the same manner and location as this conflict -of- interest code. (Gov. Code§ 81008.) The City Clerk's office shall promptly enter the actual position title of the newly created position into its electronic Form 700 record management system and ensure that the name of any individual(s) holding the newly created position is entered under that position title in the record management system. Additionally, within 90 days of the creation of a newly created position that must file statements of economic interests, the City shall update this conflict -of-interest code to add the actual position title in its list of designated positions. (Gov. Code§ 87306.) CONCURRENCES The Human Resources Department and Department Directors provided input on the revised list of designated filers. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15278. FISCAL IMPACT There is no fiscal impact to adopting the Code. ALTERNATIVE The City Council may make additional or other changes to the City’s Conflict of Interest Code. Attachments: a - Conflict of Interest Code Resolution 2018 b - Conflict of Interest Code Review 2018 changes c - Summary of Amendment to List of Designated Positions d - Revised List of Designated Positions Packet Pg. 123 Item 5 RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S CONFLICT OF INTEREST CODE WHEREAS, the Political Reform Act (Government Code Section 81000 et seq.) requires local government agencies to promulgate and adopt conflict of interest codes; and WHEREAS, Resolution No. 10758 (2016 Series) adopted on December 13, 2016 amended the City’s Conflict of Interest Code by updating the List of Designated Positions and Disclosure Categories (Exhibit A); and WHEREAS, the Political Reform Act requires that the City Council review its Conflict of Interest Code biennially to determine whether amendments are required; and WHEREAS, Council Members and appointed officials are not designated employees under this conflict of interest code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”) and this conflicts code is intended to supplement those statutory requirements as to employees and members of certain advisory bodies who are not 87200 filers. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo does hereby resolve as follows: SECTION 1. Resolution No. 10758 (2016 Series) is hereby rescinded. SECTION 2. Pursuant to the Political Reform Act of 1974, Government Code Section 87300 et seq., and Section 18730 of Title 2 of the California Code of Regulations, the City Council adopts the model conflict of interest code promulgated by the Fair Political Practices Commission of the State of California as set forth in Section 18730 of Title 2 of the Ca lifornia Code of Regulations, which model conflict of interest code is incorporated herein by reference, and which, together with the City’s Disclosure Categories and List of Designated Positions collectively constitutes the City of San Luis Obispo’s Conflict of Interest Code, as set forth in Exhibit A and Appendices 1 and 2 of this Resolution. As the model conflict of interest code set forth in Section 18730 of Title 2 of the California Code of Regulations is amended from time to time by State law, regulatory action of the Fair Political Practices Commission, or judicial determina tion, the portion of the City’s Conflict of Interest Code comprising the model conflict of interest code shall be deemed automatically amended without further action to inco rporate by reference all such amendments to the model conflict of interest code. Packet Pg. 124 Item 5 Resolution No. ____ (2018 Series) Page 2 Upon motion of _____, seconded by ____, and on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: The foregoing resolution was adopted this __ day of ________ 2018. Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 125 Item 5 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA CONFLICT OF INTEREST CODE ............................................................................................2 Section 1. Authority ....................................................................................................................2 Section 2. Purpose .......................................................................................................................2 Section 3. Code Reviewing Body ................................................................................................2 Section 4. Filing Officer ..............................................................................................................2 Section 5. Code Administrator ....................................................................................................2 Section 6. Section 18730 of the California Code of Regulations ..................................................2 Section 7. Disclosure CateGories ................................................................................................3 Section 8. Designated Positions ...................................................................................................3 EXHIBIT A Incorporation of California Code of Regulations by Reference ................................4 Section 1. Definitions. .................................................................................................................4 Section 2. Designated Employees. ...............................................................................................4 Section 3. Disclosure Categories. ................................................................................................4 Section 4. Statements of Economic Interests: Place of Filing. ......................................................5 Section 5. Statements of Economic Interests: Time of Filing. ......................................................5 Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. ................................5 Section 6. Contents of and Period Covered by Statements of Economic Interests. .......................6 Section 7. Manner of Reporting. ..................................................................................................6 Section 8. Prohibition on Receipt of Honoraria. ...........................................................................8 Section 8.1 Prohibition on Receipt of Gifts in Excess of $470. ....................................................8 Section 8.2. Loans to Public Officials. .........................................................................................8 Section 8.3. Loan Terms. ......................................................................................................... 910 Section 8.4. Personal Loans. .................................................................................................. 1011 Section 9. Disqualification. ................................................................................................... 1011 Section 9.3. Legally Required Participation. .......................................................................... 1112 Section 9.5. Disqualification of State Officers and Employees............................................... 1112 Section 10. Disclosure of Disqualifying Interest. ................................................................... 1112 Section 11. Assistance of the Commission and Counsel. ....................................................... 1112 Section 12. Violations. .......................................................................................................... 1113 APPENDIX 1 Disclosure Categories ..................................................................................... 1314 APPENDIX 2 List of Designated Positions ........................................................................... 1416 Packet Pg. 126 Item 5 San Luis Obispo Conflict of Interest Code Page 2 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA SECTION 1. AUTHORITY Government Code Section 87300 requires the City of San Luis Obispo to adopt a Conflict of Interest Code. SECTION 2. PURPOSE The purpose of the City of San Luis Obispo Conflict of Interest Code is to incorporate by reference the terms of Section 18730 of the California Code of Regulations pertaining to Conflict of Interest Codes. SECTION 3. CODE REVIEWING BODY The City Council of the City of San Luis Obispo shall be the Code Reviewing Body for the City of San Luis Obispo Conflict of Interest Code. SECTION 4. FILING OFFICER The City Clerk of the City of San Luis Obispo shall be the Filing Officer for the City of San Luis Obispo Conflict of Interest Code. All persons occupying designated positions shall file Statements of Economic Interests with the City Clerk. The City Clerk shall make statements available for public inspection and reproduction, shall retain all statements pursuant to State Law, and shall perform all other duties and responsibilities of the Filing Officer pursuant to State Law. SECTION 5. CODE ADMINISTRATOR The City Manager, or his/her designee, shall be the Code Administrator for the City of San Luis Obispo Conflict of Interest Code. The Code Administrator may promulgate further rules and regulations, which are not inconsistent with the Code, the Political Reform Act, or any regulation of the Fair Political Practices Commission; to administer the Conflict of Interest Code, including non-substantive alterations to the Code. Non-substantive alterations shall be limited to the following: (A) The reclassification or renaming of previously designated positions. (B) The deletion of a position for which the classification has been abolished. (C) Definitional or operational provisions in conformity to a statutory amendment, a regulation of the Fair Political Practices Commission, or a decision of a Court of competent jurisdiction. SECTION 6. SECTION 18730 OF THE CALIFORNIA CODE OF REGULATIONS Section 18730 of Title 2, Division 6, of the California Code of Regulations, as set forth in Exhibit A, and any amendment to it duly adopted by the Fair Political Practices Commission, along with any Appendices, are hereby incorporated by reference and constitutes the Conflict of Interest Code of the City of San Luis Obispo. Packet Pg. 127 Item 5 San Luis Obispo Conflict of Interest Code Page 3 SECTION 7. DISCLOSURE CATEGORIES Such persons holding designated positions shall report economic interests as set forth in Appendix 1. SECTION 8. DESIGNATED POSITIONS The positions listed in Appendix 2 are Designated Positions. Officers and employees holding those positions are Designated Positions and are deemed to make, or participate in the making of, decisions, which may foreseeably have a material effect on a financial interest. Consultants may be Designated Positions, as determined by the Code Administrator. The Members of the City Council, Mayor, City Manager, City Attorney, City Treasurer, Members of the Planning Commission, other public officials who manage public investments, and candidates for any offices at election, are required to file Statements of Economic Interest pursuant to Government Code Section 87200 et seq. Packet Pg. 128 Item 5 San Luis Obispo Conflict of Interest Code Page 4 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA EXHIBIT A INCORPORATION OF CALIFORNIA CODE OF REGULATIONS BY REFERENCE Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against co nflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest. The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: SECTION 1. DEFINITIONS. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by re ference into this conflict of interest code. SECTION 2. DESIGNATED EMPLOYEES. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests. SECTION 3. DISCLOSURE CATEGORIES. This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; Packet Pg. 129 Item 5 San Luis Obispo Conflict of Interest Code Page 5 (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Po litical Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies.1 Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee’s disclosure categories are the kinds of economic interests which he or she foreseeably can affect materially through the conduct of his or her office. SECTION 4. STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING. The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency’s conflict of interest code.2 SECTION 5. STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. SECTION 5.1. STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: Packet Pg. 130 Item 5 San Luis Obispo Conflict of Interest Code Page 6 (1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. SECTION 6. CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of t he code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions he ld on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively. (C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Government Code Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to 2 Cal. Code Regs. Section 18754. (D) Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. SECTION 7. MANNER OF REPORTING. Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure. When an investment or an interest in real property3 is required to be reported,4 the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise locat ion of the real property; Packet Pg. 131 Item 5 San Luis Obispo Conflict of Interest Code Page 7 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure. When personal income is required to be reported,5 the statement shall contain: 1. The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the hig hest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the considerat ion, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported,6 the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the per iod covered by the statement, the statement shall contain the date of acquisition or disposal. Packet Pg. 132 Item 5 San Luis Obispo Conflict of Interest Code Page 8 SECTION 8. PROHIBITION ON RECEIPT OF HONORARIA. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506. SECTION 8.1 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF $460 470 (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $470460 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an e lected official. Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section. SECTION 8.2. LOANS TO PUBLIC OFFICIALS. (A) No elected officer of a state or local government agency shall, from the date of h is or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. (B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. Packet Pg. 133 Item 5 San Luis Obispo Conflict of Interest Code Page 9 (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. SECTION 8.3. LOAN TERMS. (A) Except as set forth in subdivision (B), no elected officer of a st ate or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. Packet Pg. 134 Item 5 San Luis Obispo Conflict of Interest Code Page 10 SECTION 8.4. PERSONAL LOANS. (A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. (B) This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has t aken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. SECTION 9. DISQUALIFICATION. No designated employee shall make, participat e in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its e ffect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth two thousand dollars ($2,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000) or more; Packet Pg. 135 Item 5 San Luis Obispo Conflict of Interest Code Page 11 (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $470 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. SECTION 9.1. LEGALLY REQUIRED PARTICIPATION. No designated employee shall be prevented from making or participating in t he making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. SECTION 9.2. DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES. In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transact ions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more. SECTION 10. DISCLOSURE OF DISQUALIFYING INTEREST. When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. SECTION 11. ASSISTANCE OF THE COMMISSION AND COUNSEL. Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 Cal. Code Regs. Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue an y formal or informal opinion. Section 12. Violations. This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91014. In addition, a decision in relation to which Packet Pg. 136 Item 5 San Luis Obispo Conflict of Interest Code Page 12 a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. NOTE: Authority cited: Section 83113, Government Code. Reference Sections 87103(e), 87300, 87302, 89501, 89502 and 89503, Government Code. 1 Designated employees who are required to file statements of economic interests under any other agency’s conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu o f filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original statement is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 2 See Government Code Section 81010 and 2 Ca. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 3 For purposes of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in t he income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. Packet Pg. 137 Item 5 San Luis Obispo Conflict of Interest Code Page 13 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA APPENDIX 1 DISCLOSURE CATEGORIES CATEGORY 1 (Broad Disclosure) All investments, business positions, and sources of income, including gifts, loans, and travel payments from sources doing business in the jurisdiction of the City. All interests in real property within the jurisdiction, including property located within a two -mile radius of any property owned or used by the City. CATEGORY 2 (Disclosure Related to Contracting/Purchasing) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type associated with the employee’s job assignment . CATEGORY 3 (Disclosure Related to Licensing/Permitting) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that are subject to the regulatory, permit, or licensing authority of, or have an application for a license or permit pending before the City, and is subject the employee’s area of authority. CATEGORY 4 (Disclosure Related to Grants/Service Providers) All investments, business positions, a nd income, including gifts, loans, and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants and other monies from or through the City, and subject to the employee’s area of authority. CATEGORY 5 (Consultant Disclosure) Must report investments, business positions, and income from business entities located in, planning to do business in, or doing business with the City of San Luis Obispo subject to the following: No financial interest need be reported unless it is from a source which provides services, supplies, material, machinery, or equipment of the type utilized by or which is subject to the regulatory permit or licensing authority of the department by which the consultant is employed. Department Directors shall determine, based upon the description of the consultant’s duties outlined in the contract, whether or not a consultant will make or participate in making a governmental decision, and if so the consultant shall file a Statement of Economic Interest. NEWLY CREATED/TEMPORARY POSITIONS With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties. Determinations shall be made in writing on an FPPC Form 804 and provided to the City Clerk and the Human Resources Department. Packet Pg. 138 Item 5 San Luis Obispo Conflict of Interest Code Page 14 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA APPENDIX 2 LIST OF DESIGNATED POSITIONS DRAFT CHANGES – 2016 CODE REVIEW DESIGNATED POSITIONS DISCLOSURE CATEGORY Committees/Commissions/Authorities: Members of the Architectural Review Commission 3 Members of the Administrative Review Board 1 Members of the Construction Board of Appeals 1 Members of the Cultural Heritage Committee 3 Members of the Housing Authority 1 Members of the Human Relations Committee 4 Members of the Investment Oversight Committee 1 Members of the Parking Authority 1 Members of the Promotional Coordinating Committee 2, 4 Members of the Public Financing Authority 1 Administration Department Assistant City Manager 1 Assistant City Clerk 2 Assistant to the City Manager 2 City Clerk 2 Economic Development Manager 2 Natural Resources Manager 2 Interim Deputy City Manager 1 Interim Deputy Director – Office of Sustainability 2 Information Technology Director 1 Information Technology Manager 2 Special Projects Manager 2, 3 Sustainability Manager 2 Tourism Manager 2, 4 City Attorney’s Office Administrative Citation Hearing Officer 1 Assistant City Attorney 1 Community Development Department Building and Safety Supervisor 2, 3 Chief Building Official 2, 3 Code Enforcement Supervisor 2, 3 Deputy Director of Community Development 1 Director of Community Development 1 Housing Program Manager 2, 3 Principal Planner 2, 3 Senior Planner 2, 3 Packet Pg. 139 Item 5 San Luis Obispo Conflict of Interest Code Page 15 DESIGNATED POSITIONS DISCLOSURE CATEGORY Finance Department Accounting Manager 2, 3 Budget Manager 2 Director of Finance 1 Purchasing Analyst 2, 3 Fire Department Deputy Fire Chief 2, 3 Fire Chief 1 Fire Marshal 2, 3 Human Resources Department Director of Human Resources 2, 4 Human Resources Manager 2, 4 Information Technology Department Information Technology Director 1 Information Technology Manager 2 Parks & Recreation Department Director of Parks and Recreation 1 Recreation Manager 2 Recreation Supervisor (Aquatics & Facilities) 2 Police Department Chief of Police 1 Communication and Records Manager 2 Neighborhood Outreach Manager 2 Police Captain 2, 3 Public Works Department Active Transportation Manager 2 Construction Engineering Manager 2 Deputy Director of Public Works 2, 3 Director of Public Works 1 Fleet Maintenance Supervisor 2 Parking Services Manager 2, 3 Senior Civil Engineer 2, 3 Supervising Civil Engineer 2, 3 Transit Manager 2, 3 Transportation Manager 2, 3 Urban Forest Supervisor/City Arborist 2, 3 Packet Pg. 140 Item 5 San Luis Obispo Conflict of Interest Code Page 16 DESIGNATED POSITIONS DISCLOSURE CATEGORY Utilities Department Deputy Director of Utilities 2, 3 Director of Utilities 1 Environmental Programs Manager 2, 3 Laboratory Manager 2 Utilities Business Manager 2 Utilities Projects Manager 2 Wastewater Collection System Supervisor 2 Wastewater Treatment Plant Supervisor 2 Water Distribution Chief Operator 2 Water Distribution System Supervisor 2 Water Resources Program Manager 2 Water Resources Recovery Facility Supervisor 2 Water Treatment Plant Supervisor 2 Whale Rock Reservoir Supervisor 2 Other Positions: Housing Authority Executive Director 1 Consultants 5 Packet Pg. 141 Item 5 SUMMARY OF AMENDMENTS TO THE LIST OF DESIGNATED POSITIONS Position Title Substitutions: Former Title: New Title/s: Communication and Records Manager Communications Manager New Positions Added: Assistant to the City Manager Interim Deputy City Manager Interim Deputy Director – Office of Sustainability Sustainability Manager Active Transportation Manager Water Distribution Chief Operator Positions to be Deleted: None Positions moved from Information Technology Department to Administration Department Information Technology Director Information Technology Manager Packet Pg. 142 Item 5 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA APPENDIX 2 LIST OF DESIGNATED POSITIONS DRAFT CHANGES – 2018 CODE REVIEW DESIGNATED POSITIONS DISCLOSURE CATEGORY Committees/Commissions/Authorities: Members of the Architectural Review Commission 3 Members of the Administrative Review Board 1 Members of the Construction Board of Appeals 1 Members of the Cultural Heritage Committee 3 Members of the Housing Authority 1 Members of the Human Relations Committee 4 Members of the Investment Oversight Committee 1 Members of the Parking Authority 1 Members of the Promotional Coordinating Committee 2, 4 Members of the Public Financing Authority 1 Administration Department Assistant City Manager 1 Assistant City Clerk 2 Assistant to the City Manager 2 City Clerk 2 Economic Development Manager 2 Natural Resources Manager 2 Interim Deputy City Manager 1 Interim Deputy Director – Office of Sustainability 2 Information Technology Director 1 Information Technology Manager 2 Special Projects Manager 2, 3 Sustainability Manager 2 Tourism Manager 2, 4 City Attorney’s Office Administrative Citation Hearing Officer 1 Assistant City Attorney 1 Community Development Department Building and Safety Supervisor 2, 3 Chief Building Official 2, 3 Code Enforcement Supervisor 2, 3 Deputy Director of Community Development 1 Director of Community Development 1 Housing Program Manager 2, 3 Principal Planner 2, 3 Senior Planner 2, 3 Packet Pg. 143 Item 5 San Luis Obispo Conflict of Interest Code Page 2 DESIGNATED POSITIONS DISCLOSURE CATEGORY Finance Department Accounting Manager 2, 3 Budget Manager 2 Director of Finance 1 Purchasing Analyst 2, 3 Fire Department Deputy Fire Chief 2, 3 Fire Chief 1 Fire Marshal 2, 3 Human Resources Department Director of Human Resources 2, 4 Human Resources Manager 2, 4 Information Technology Department (moved into Administration Information Technology Director 1 Information Technology Manager 2 Parks & Recreation Department Director of Parks and Recreation 1 Recreation Manager 2 Recreation Supervisor (Aquatics & Facilities) 2 Police Department Chief of Police 1 Communication and Records Manager 2 Neighborhood Outreach Manager 2 Police Captain 2, 3 Public Works Department Active Transportation Manager 2 Construction Engineering Manager 2 Deputy Director of Public Works 2, 3 Director of Public Works 1 Fleet Maintenance Supervisor 2 Parking Services Manager 2, 3 Senior Civil Engineer 2, 3 Supervising Civil Engineer 2, 3 Transit Manager 2, 3 Transportation Manager 2, 3 Urban Forest Supervisor/City Arborist 2, 3 Packet Pg. 144 Item 5 San Luis Obispo Conflict of Interest Code Page 3 DESIGNATED POSITIONS DISCLOSURE CATEGORY Utilities Department Deputy Director of Utilities 2, 3 Director of Utilities 1 Environmental Programs Manager 2, 3 Laboratory Manager 2 Utilities Business Manager 2 Utilities Projects Manager 2 Wastewater Collection System Supervisor 2 Wastewater Treatment Plant Supervisor 2 Water Distribution Chief Operator 2 Water Distribution System Supervisor 2 Water Resources Program Manager 2 Water Resources Recovery Facility Supervisor 2 Water Treatment Plant Supervisor 2 Whale Rock Reservoir Supervisor 2 Other Positions: Housing Authority Executive Director 1 Consultants 5 Packet Pg. 145 Item 5 Page intentionally left blank. Packet Pg. 146 Item 5 Meeting Date: 9/18/2018 FROM: Garret Olson, Fire Chief Prepared By: James Blattler, Administrative Analyst SUBJECT: EMERGENCY SERVICES AGREEMENT WITH CALIFORNIA POLYTECHNIC STATE UNIVERSITY (CAL POLY) RECOMMENDATION Authorize the Mayor to execute a succession Agreement with California Polytechnic State University (Cal Poly), in a form subject to the approval of the City Attorney, for emergency response services to Cal Poly. DISCUSSION Background The City has a long history of providing fire, rescue, and emergency medical services to Cal Poly. Since 1993, the contract between Cal Poly and the City of San Luis Obispo has been in effect and mutually beneficial. Through the contract, Cal Poly receives a high level of fire and emergency medical response and the City receives comp ensation for services rendered. Current Situation The City and Cal Poly have been in negotiations for the past nine months, collaborating to develop a fee-for-services contract model that anticipates and supports the service level impacts that may result from the projects and initiatives of Cal Poly’s future Master Plan implementation. Due to delays from Cal Poly legal review, the current 2013 -2018 emergency response services contract (Attachment A) was extended through an amendment agreement (Attachment B) until September 30, 2018. This agreement included a static base fee and an annual adjustment to address inflation, which has been the model for several contract periods. Contract Modifications The succession agreement (Attachment C) has an initial ter m of five years and provides a newly developed fee model, which is based on the population of the campus. Rates, as shown in the chart located in the “FISCAL IMPACT” section, will be dependent on the population type, for example, on-campus residents will be charged a higher rate than students that reside off-campus. For the purposes of the succession agreement, the fall semester adjusted census information will be used, which is reported by the University approximately three to four weeks after the start o f the fall semester. To smooth reimbursement rates and allow for the University to properly prepare for potentially significant changes in the annual service fee, this census population will be based on the prior year’s data. Packet Pg. 147 Item 6 As outlined in the amendment agreement, the succession agreement will be retroactive to the effective date of July 1, 2018 and fees to Cal Poly will be adjusted based on the newly agreed upon rates. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15278. FISCAL IMPACT Responding to Cal Poly will have associated costs such as fuel and disposal supplies, which will be reimbursed through the service agreement. In Fiscal Year 2018-19, the City will receive a total of $296,090 for services provided and based on Cal Poly’s 2017-18 campus population. If Cal Poly’s population levels remain static throughout the term of the agreement, the City would receive revenue in excess of $1.4M over the five-year contract term. Contract Year 1 (2018/19) Contract Year 2 (2019/20) Contract Year 3 (2020/21) Contract Year 4 (2021/22) Contract Year 5 (2022/23) Fee per University housed student, faculty, staff population $25.00 Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjust Fall Census 7,667 TBD TBD TBD TBD Subtotal $191,675 TBD TBD TBD TBD Fee per Non-University housed student population $7.95 Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted Fall Census 13,134 TBD TBD TBD TBD Subtotal $104,415 TBD TBD TBD TBD TOTAL $296,090 TBD TBD TBD TBD ALTERNATIVE The Council could choose to discontinue contracting for services to Cal Poly. This is not recommended because of the mutual benefits of the contract for both Cal Poly and the City and would be counter to the City’s Fiscal Health Response Plan. Attachments: a - 2013-18 Cal Poly Fire and EMS Service Agreement b - 2013-18 Agreement Amendment 1 c - 2018-23 Emergency Services Agreement Packet Pg. 148 Item 6 AGREEMENT FOR EMERGENCY SERVICES BETWEEN CALIFORNIA POLYTECHNIC STATE UNIVERSITY AND THE CITY OF SAN LUIS OBISPO THIS AGREEMENT is entered into on July 1, 2013, by and between California Polytechnic State University (hereafter referred to as "University") and the City of San Luis Obispo (hereafter referred to as "City"). The County of San Luis Obispo, a political subdivision of the State of California (hereinafter referred to as "County") is hereby made a party to this Agreement for the limited purposes set forth below. WITNESSETH: WHEREAS, prior to 1996, University operated an institutional fire department. As a result of dire fiscal circumstances, University sought a more cost-effective solution to its fire protection and emergency medical service requirements. Unlike every other campus in the California State University system, University is situated in an unincorporated area and has more than one-third of its students living on campus. The unincorporated areas of San Luis Obispo County are served by Cal Fire for delivery of fire protection. Upon investigation, it was determined that University required an increased level of fire protection service for the main campus which is characterized by dense development including high-rise academic buildings and residence halls housing nearly 7,000 full-time residents that could not be provided to the level of service available from Cal Fire. As a result, University negotiated an agreement directly with the City of San Luis Obispo to provide these crucial services to campus on a fee-for-service basis. Since 1996, the City has tailored its services to best meet University's unique demands through purchase of specialized equipment, on-campus training and inclusion of University in its overall strategic fire service planning. The necessity and value of this Agreement have increased in proportion to University's growing student population and facilities. WHEREAS, the University is desirous to maintain a nearly 20-year relationship and have the City continue to provide personnel, equipment, materials, and supervision required to respond to structure and other hostile fires (a hostile fire differs from a friendly fire, which bums in a place where it was intended to bum, such as one confined to a fireplace or furnace), medical emergencies, disaster response, and other agreed upon incidents on the main campus of the University; and WHEREAS, the San Lu is Obispo City Council has authorized staff to negotiate the terms of an agreement to provide such services to the University. WHEREAS, the interests of the City and the University would be served by entering into this Agreement. WHEREAS, the County consents to the City's continued provlSlon of increased fire protection services to the University which is situated within the County's local responsibility area, upon the terms and conditions agreed to by the City and the University as set forth herein. Page 1 of 23 Packet Pg. 149 Item 6 NOW, THEREFORE, IT IS AGREED AS FOLLOWS : 1. Services Components. The City agrees to provide personnel, equipment, materials, and supervision required to respond to structure and other hostile fires, medical emergencies, disaster response, and other agreed upon incidents in the Service Area, which is the main campus of the University. The specific services shall be more thoroughly outlined as follows: Exhibit A Exhibit B Exhibit C Exhibit D Services Performed Scope of Service Service Area San Luis Obispo City and Cal-Fire Response to Incidents within University Contract Service Area All services shall be provided in compliance with applicable federal and state laws and regulations, or in the absence of such laws or regulations, in compliance with recognized performance standards for similar services. The City shall respond, within its capacity, to provide services upon being notified by the University. Nothing in this Agreement shall be construed to waive, limit, or impair any defenses or immunities available to the parties by statute, at law or in equity, or otherwise in the performance of fire protection and emergency services activities. 2 . Difference in Conditions The University and City recognize differences in design, building and fire code application in the City and on the campus. California State Fire Marshal has jurisdiction over State property and is responsible for the compliance of facilities and operations with applicable fire and safety codes as well fire safety design of facilities and supporting infrastructure. The City of San Luis Obispo fire and emergency response resources have been designed to operate within the City. Operations on the campus may be at a disadvantage when conditions such as but not limited to accessibility, fire flows, hydrant locations, fixed fire protection systems, and alarms systems are different than conditions within the City of San Luis Obispo. 3. Administration. a. Contact Personnel. The City designates the Fire Chief or his/her designee as a single point of contact for coordination of service to the University. The University designates the University Police Chief or his/her designee as a single point of contact for the coordination of services from the City. b. University. Herein "University" shall include the State of California, the Trustees of the California State University, California Polytechnic State University, San Luis Obispo, all Auxiliary Organizations, each of their officers, officials, employees, authorized representatives, agents, directors, and volunteers. c. Unified Command. In general, emergency operations on the University campus shall be conducted through unified command between the City and the University. Page 2 of23 Packet Pg. 150 Item 6 d. Cooperation. To facilitate the performance of the services components (above), it is hereby agreed that the City and University shall fully cooperate with each other, including but not limited to the following : (1) The University will cooperate with the City in assisting with the training of City personnel for familiarization of, and access to, all facilities of the University. (2) University employees, equipment, and supplies (such as trade persons , police, hazardous materials technicians, heavy equipment, etc.) shall be available for assistance to the City in mitigating emergencies. (3) City personnel shall, upon identification of a life safety and/or fire hazard within the service area, notify the designated University contact and/or University Police Watch Commander. The City's Battalion Chief shall maintain close contact with the University when the City is operating (emergency or non-emergency) on campus. (4) The University will make every effort to notify City Dispatch (781-7312) of changes in the following areas: access points, road conditions and closures (major thoroughfares only), new buildings or changes in building use, major events and significant changes in hazardous materials storage or use as soon as possible and will confirm in writing. (5) The City will continue to conduct training, provide advice and assistance to the University with issues, such as fire prevention, water system, and hydrant maintenance. The City, when requested by the University, will act as a Technical Specialist on hazardous materials and fire prevention concerns. e. Personnel Status. While involved in the execution of this Agreement, regularly employed personnel of the City and the University shall remain employees of their respective agencies, and shall remain subject to the rules and regulations of their own agency in all matters of employment, including but not limited to benefits, medical and life insurance, and worker's compensation insurance. 4. Compensation. University will pay City in accordance with the below schedule. These annual sums will be paid in four equal installments in advance each quarter beginning July 1 for the duration of the Agreement. In addition, the University will pay City at the end of each contract year for additional services as defined in Attachment A section 7, for services requested and received by the University. Page 3 of23 Packet Pg. 151 Item 6 Payment Schedule 1 2 3 4 5 2013/14 2014/15 2015/16 2016/17 2017/18 $270,684 $270,684 $273,391 $276,125 $284,408 5. Term It is the desire of the University to form a long-term relationship with the City for fire related emergencies. The term for this agreement shall be five years, commencing July 1, 2013 and expiring June 30, 2018. Prior to the expiration of this contract, the parties agree to meet and discuss renewal of this Agreement, if not sooner terminated as provided herein. 6. Reports The City will provide a copy of all reports dealing with emergency response to the campus, and will provide quarterly reports of service provided to the University. 7. Termination. Either party, upon the giving of six (6) months advance written notice, may terminate this agreement. 8. Indemnification. City shall defend, indemnify, hold harmless and protect the State of California, the Trustees of the California State University, California Polytechnic State University, San Luis Obispo, all Auxiliary Organizations, and each of their officers, officials, employees, authorized representatives, agents, and volunteers (the "University") from and against any and all cost, damage, expense, liability, loss (including without limitation to costs and fees of litigation) of every nature arising out of or in connection with City's (includ ing any subcontractor, anyone directly or indirectly employed by anyone for whose acts any of them may be liable) performance of work hereunder or failure to comply with any of its obligations contained in the agreement, except s uch loss or damage which was caused by the sole negligence or willful misconduct of the University . Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this contract or affect the legal liability of either party by imposing any standard of care respecting emergency services different from the standard of care imposed by law. It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be Page 4 of23 Packet Pg. 152 Item 6 done by the University under or in connection with any work, authority or jurisdiction delegated to the University under this Agreement. It is also understood and agreed that University shall defend, indemnify and save harmless the City, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the University under or in connection with any work, authority or jurisdiction delegated to the University under this Agreement except as otherwise provided by statute. University shall defend, indemnify, hold harmless and protect the City, and its officers, employees, representatives, agents and volunteers from and against any and all cost, damage, expense, liability, loss (including without limitation to costs and fees of litigation) of every nature arising out of or in connection with University's performance of work hereunder or failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City. 9. Insurance City shall provide financing for losses related to the performance of this contract to support the City's obligation to defend, indemnify, and protect the University from losses including claims for bodily injuries, personal injury, property damage and/or contractual liability which may arise from or in connection with the products, performance of the work, and/or completed operations of the work hereunder by or for the City. City's financing for losses related to the performance of this contract shall be primary to any financing of losses related to the City's performance of this contract by the State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents, and volunteers, the "University". City agrees to look solely to its loss financing for recovery in the event of any losses for which the City is held liable. City agrees that any loss financing maintained by the University shall be excess and shall not contribute to City's loss financing. City shall at its expense purchase and maintain in full force and effect insurance coverage as required by this section. City's obligations to obtain and maintain all required msurance are non-delegable duties under this contract. City provided insurance shall be primary to any insurance of the State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents, and volunteers, the "University". If excess, the insurance shall stand in an unbroken chain of coverage excess of the City's scheduled underlying primary coverage. Page 5 of23 Packet Pg. 153 Item 6 In either event, any other insurance maintained by the University shall be excess of the City's insurance and shall not be called upon to contribute with it. Insurance is to be placed with insurer(s) authorized to issue such insurance in the State of California with current A.M. Best's rating of no less than A: VII, unless otherwise approved by the University. City shall submit to the University, certificates of insurance, original amendatory endorsements and other documentation as required by this contract. The University shall not by reason of inclusion as additional insured incur liability to the insurance carriers for payment of premiums for such insurance. Required insurance and/or its successor policy must be in effect for the duration of the project or lease and for extended reporting period(s) as required by this contract. Insurance policy renewal documentation (endorsement and policy) shall be received by the University a minimum of ten (10) working days in advance of the expiration date shown on the current policy. Failure of the City to maintain or renew coverage or to provide evidence of renewal or successor policy may be treated by the University as a material breach of contract. If the University is damaged by the failure of the City to provide or maintain the required insurance, the City shall pay the University for all such damages. The University reserves the right to review and approve of insurance provided by the City. Approval of City provided insurance shall not limit the extent to which the City may be held responsible for payment for losses including claims for bodily injury, personal injury, property damage and/or contractual liability which may arise from or in connection with the products, performance of the work, and/or completed operations of the work hereunder by or for the City. The University reserves the right to approve of any deductible/self insured retention (SIR). Any deductible or self insured retention (SIR) under any policy of insurance required shall be City's liability. At the discretion of the University, City shall submit proof of ability to fund deductible/SIR and/or City shall reduce or eliminate such deductibles or self insured retentions that may apply to the University. City shall waive and cause to be waived the rights of subrogation against the University by the City, subcontractors, insurance company or loss financing program which may assume subrogation rights. City shall ensure that its subcontractors are covered by insurance in the amount and type required by this article. Page 6 of23 Packet Pg. 154 Item 6 City shall include all subcontractors as insureds under its policies or shall require separate certificates and endorsements for each subcontractor. Acceptance and review of subcontractor insurance documents IS the responsibility of the City. City shall supply the University with a list of all subcontractors showing whether they have individual insurance policies or are covered by the City's insurance. City shall certify that subcontractors are either covered by City's insurance or that Subcontractor's individual insurance meets the requirements of this article. Any deficiencies in compliance with the requirements of this article found m any subcontractor insurance shall be covered by the City's financing for losses. Contract shall not be executed and no work shall commence until City has obtained all insurance required and provided the required documentation that the insurance is in effect and the University has approved such insurance. No subcontractors shall commence work on its subcontract until the insurance required of the Subcontractor has been obtained and proof of insurance is accepted by the University. The University reserves the right to require complete, certified copies of all msurance policies , including endorsements affecting the coverage specified. The University reserves the right to modify these specifications for the benefit of the University. In the event the C ity does not comply with these insurance requirements, the University may, at its option, provide insurance coverage to protect the University. The cost of the insurance shall be paid by the City and, if prompt payment is not received, may be deducted from contract sums otherwise due the City. Required coverage shall not extend to any indemnity coverage for the active negligence of the University in any case where an agreement to indemnify the University insured would be solely invalid under Subdivision (b) of Section 2782 of the Civil Code for construction contracts (construction contracts with public agencies). Forms University provided forms are preferred. Alternate documents submitted must comply with all requirements, prov iding equivalent or better coverage as specified in this article. to: All insurance certificates, endorsements, policies and claim forms required shall be submitted California Polytechnic State University San Luis Obispo, CA 93407 Page 7 of23 Packet Pg. 155 Item 6 Attn: Contract and Procurement Services Certificates City shall furnish University with original certificates evidencing required coverage. Certificates shall include the following: Name and Address of Agent/Broker Named and Address of Insured Name of insurance company issuing each policy A.M. Best's Rating and Financial Size for each company Type of Insurance Comprehensive or Commercial General Liability Claims Made or Occurrence Business Automobile Liability Categories of autos covered and any additional coverage Workers Compensation & Employer Liability Partners, proprietor, executive ex/included Excess or Umbrella Liability Policy Number Policy Period (start and end date) Limits (Occurrence, Claim, Accident, Event, Injury, Disease, Aggregate) Deductibles I Self Insured Retention Description and Location of Operations and/or Property Covered Agreement or Contract Number Identification of interest(s) in property Certificates shall state: ''The State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, all auxiliary organizations, and each of their officers, officials, employees, authorized representatives, agents, directors, and volunteers, the "University" are designated as Additional Insured". The Insurers named above agree that the insurance described above shall be primary as respects the University, or if excess shall stand in an unbroken chain of coverage excess of the City's underlying primary coverage. In either event, any other insurance maintained by the University shall be excess of this insurance and shall not be called upon to contribute with it. The Insurers named above waive any right of recovery the Insurers may have against the University when the insured has agreed to such waiver in writing prior to loss . "Coverage described herein shall not be modified, changed or cancelled without thirty (30) days advance written notice or cancelled for non payment without ten (10) days' advance written notice to the University." Certificate Holder: California Polytechnic State University Page 8 of 23 Packet Pg. 156 Item 6 San Luis Obispo, CA 93407 Attn: Contract and Procurement Services" Certificates shall be signed by an authorized representative of the insurer and indicate date of issue . Endorsements City shall furnish original amendatory endorsements as required by the insurance specifications in this article. In general , all endorsements shall include the following: Name of Insurer Policy Number Endorsement Number Type of Insurance Modified Schedule: "The State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, all auxiliary organizations, and each of their officers , officials, employees, authorized representatives, agents, directors , and volunteers, the "University" are designated as Additional Insured". Signature of authorized representative Address Form Number, if any The City shall provide the following General Liability coverage: Primary insurance coverage against claims for injuries to persons or damages to property which may arise from or in connection with the products and materials supplied to the University. Minimum limits-$5 million occurrence, $10 million aggregate Coverage provided shall be at least as broad as: ISO Commercial General Liability, Occurrence Form, CG 00 0 1. Policy shall be endorsed to provide coverage at least as broad as ISO CG 20 10 11 85. Endorsement shall designate : The State of California, Trustees of the California State University, California Polytechnic State University San Luis Obispo , and each of their officers, officials, employees, authorized representatives, agents and volunteers, the "University" as an Additional Insured. Page 9 of 23 Packet Pg. 157 Item 6 Endorsement shall state this insurance shall be primary as respects the University, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by the University scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it. Endorsement shall state that Insurer named above waives any right of recovery the Insurer may have against the University when the Insured has agreed to such waiver in writing prior to loss. Endorsement shall state that coverage shall not be cancelled, changed, or modified except after thirty (30) days' advance written notice has been given to the University. (10 days advance written notice for non-payment) Endorsement shall state that coverage shall not extend to any indemnity coverage for the active negligence of the University in any case where an agreement to indemnify the University would be invalid under Subdivision (b) of Section 2782 of the Civil Code (construction contracts with public agencies). City to submit: University provided certificate and endorsements, or equivalent forms acceptable to the University effecting required coverage. The City shall provide the following Automobile Liability coverage: Primary insurance coverage against claims with respect to liability arising out of automobiles owned, hired or non-owned by or on behalf of the City. Coverage shall include bodily injury, property damage, contractual liability, and uninsured/underinsured motorist . Minimum $ 5 mill ion combined single limit Policy shall be endorsed to provide coverage at least as broad as ISO Business Auto Coverage Form CA 00 01 (owned, scheduled, non-owned, and hired autos) including coverage for uninsured and underinsured motorists and contractual liability. Endorsement shall designate: "The State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, all auxiliary organizations, and each of their officers, officials, employees, authorized representatives, agents, directors, and volunteers, the "University" are designated as Additional Insured". As Additional Insured Endorsement shall state that this insurance shall be primary as respects the University, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured's schedu led underlying primary coverage. In either event, any other insurance maintained by the University Page 10 of23 Packet Pg. 158 Item 6 scheduled above shall be in excess of this insur;:mce and shall not be called upon to contribute with it. Endorsement shall state that Insurer named above waives any right of recovery the Insurer may have against the University when the Insured has agreed to such waiver in writing prior to loss. Endorsement shall state that coverage shall not be cancelled, changed, or modified except after thirty (30) days' advance written notice has been given to the University. (10 days advance written notice for non-payment) City to submit: University provided certificate and endorsement or equivalent forms acceptable to the University effecting required coverage. The City shall provide thefollowing Workers Compensation and Employer's Liability Coverage: Primary insurance coverage against claims with respect to obligations imposed on the City and subcontractor's by State workers compensation statutes and damages that the City becomes legally obligated to pay because of bodily injury by accident or disease to an employee. Minimum limits: amount proscribed by California law for Workers Compensation, $1,000,000 for Employer's Liability. Policy shall be endorsement to state that Insurer named above waives any right of recovery the Insurer may have against the University when the Insured has agreed to such waiver in writing prior to loss. Endorsement shall state that coverage shall not be cancelled, changed, or modified except after thirty (30) days' advance written notice has been given to the University. (10 days advance written notice for non-payment) City to submit: University provided certificate and endorsement or equivalent forms acceptable to the University effecting required coverage. 10. Priorities The University recognizes there will be priorities that will dictate the City's capabilities. Subsequent to prioritizing emergencies based on life safety, the City will deliver available resources to assist the University in its mitigation efforts. If additional emergency response resources are needed, they will be accessed through the Mutual Aid system already in place. 11. Notices. Any notice required to be given pursuant to the terms and provisions hereof shall be in writing and shall be sent by certified or registered mail to the University at: City at: Page 11 of 23 Packet Pg. 159 Item 6 George Hughes Police Chief California Po lytechnic State University San Luis Obispo, CA 93407 12. Agreement Contains all Understandings. Charlie Hines Fire Chief San Luis Obispo City Fire Department 2160 Santa Barbara Ave. San Luis Obispo, CA 93401-5240 This document represents the entire and integrated Agreement between the City and the University, and supersedes all prior negotiations, representations, or Agreements, either written or oral. The Agreement may be amended only by written instrument, signed by both City and University. All provisions of this Agreement are expressly made conditions. This Agreement shall be governed by the laws of the State of California. IN WITNESS THEREOF, City and University have executed this Agreement the day and year first above written. [SIGNATURES ON FOLLOWING PAGE] Page 12 of23 Packet Pg. 160 Item 6 ATTEST: RITA L. NEAL County Counsel • I .. BY :V .. ---~ •.. -. Chief Deputy County Counsel CALIFORNIA POLYTECHNIC STATE UNIVERSITY c:)~ By : ________________________________ ___ Dru Zachmeyer Director Contracts & Procurement CITY OF SAN LUIS OBISPO By ~~ Jan Ho I Marx, Mayor APPROVED AS TO CONTENT: 7<:u.tLa_8~ County Board of Supervisors By: ____________________ _ Its: ____________________ _ ATTEST: Julie l. Rodewald, County cterk-Reoorder and Ex-Offtcio Clerk of the Board of Supervisors Page 13 of 23 Packet Pg. 161 Item 6 1. Fire Suppression ATTACHMENT A SERVICES PERFORMED City shall provide personnel, equipment, materials and supervision for suppression of structure and other hostile fires on the main campus (Service Area) of the University, as available. Fire suppression shall include those universally accepted activities, which bring a hostile fire under control and render the property safe from further damage. Fires to be suppressed shall include (but are not limited to): structure, rubbish, trash container, automobile, vegetation adjacent to structure and other such fires which are evaluated from the initial report to be of significance or beyond the capabilities of the University's response. 2. Extrication/Rescue Emergencies City shall provide personnel, materials, equipment and supervision for emergency extrication of students , faculty, staff, guests, and visitors on the main campus (Service Area) of the University, as available. Rescue includes: extrication of trapped persons from vehicles, machinery, cave-ins, structure collapses, confined spaces, fire, and other significant situations, which may require assistance. The City will provide emergency medical treatment for rescue situations, as it is available . The City's response to elevator problems will be limited to situations where the University has determined that an emergency exists . 3. Fire Alarms The University shall maintain all campus alarm systems. University personnel will evaluate a reporting alarm prior to notifying City dispatch . The City shall respond one engine "Code 3" and one engine "Code 2" to water flow alarms in buildings with sprinkler systems. The University will screen all other alarms and will notify the City when confirmation is made that a fire or other emergency is in progress or likely. 4. Pre-Hospital Emergency Care University has established an Emergency Medical Dispatch (EMD) program that will determine the priority of a medical emergency and provide pre-arrival instructions to the caller. The City agrees to provide emergency medical support to the University for Priority One (ALS) type calls as outlined in the EMD Program . 5. Hazardous Materials City shall provide trained personnel as indicated by the Code of Federal Regulations 29 "First Responder Capabilities" to the University, as available. It is the intent that the City will share in a unified command of any hazardous materials incidents based on the availability of responding University personnel . Page 14 of 23 Packet Pg. 162 Item 6 Response to the threat of or release of hazardous materials shall include: evacuation of affected area, identification of substances, containment of substances, protective actions for people, environment and property. The University will provide te c hnical support of qualified staff (within the University's capacity and to the extent available) to assist the City with hazardous materials response. The City will provide supplies and materials normally associated with first response. The University will arrange for hazardous materials response beyond the capability of the City including the removal and disposal of the hazardous material(s). The City shall act, when required, as the University's representative on the San Luis Obispo County Regional Hazardous Materials Response Team. The University will continue to participate on the team during the term of the agreement. The City and the University will operate a unified command on any hazardous materials emergency that should occur on the campus. 6. Disaster Preparedness The University has developed and maintains at a high state of readiness, a multi-hazard disaster response plan. Included in this plan is the e stablishment and operation of a University Emergency Operations Center as well as annexes addressing the roles of operational units of the University. The Fire Department agrees to work cooperatively with the University in following , the University's disaster plans as resources allow. The University s hall provide to the City one copy of the University's disaster response plan and annual updates. 7. Additional Services Special non-emergency situations, not specifically covered in this Agreement, may arise that are determined by the University to requ ire resources beyond their capabilities. When requested by the University, the City may provide, at its sole discretion, resources if available. The University will compensate the City in accordance with the City Council adopted cost of services study, which is annually adjusted by the Consumer Price Index. The following are examples of Fire Department additional services that may be available : • flooding/storm response • smoke removal • electrical hazard • bomb threats (not including Bomb Task Force) • pipeline ruptures/water control • animal rescues • s pecial events/crowd control/civil disturbances • non-emergency stand-by Page 15 of 23 Packet Pg. 163 Item 6 ATTACHMENT B SCOPE OF SERVICE The San Luis Obispo City Fire Department will respond to the University as outlined below. The San Luis Obispo Fire Department agrees that 90% of the time it will initiate response within 60 seconds of the request during day-time hours (0800-2000) and 90 seconds at night-time (2000-0800). 1. First Alarm Assignment for the University A standard "First Alarm" assignment for the University shall consist of 2 engines, 1 ladder truck and 1 Battalion Chief code 3 from the City and 1 engine code 3 from Cal-Fire. The use of a move-up company to cover Fire Station One is required. 2. Reduced Assignment for the University The incident being reported may not require a first alarm assignment and may, therefore, require the dispatcher to send a reduced assignment to the emergency. Anything less than a first alarm assignment is considered to be a reduced assignment. 3. Greater Alarm Assignments for the University When an Incident Commander determines that the resources at hand may not be sufficient to both alleviate the threat presented at the University and provide adequate coverage to the City, s/he has an obligation to call for additional resources in a timely manner. This is especially critical with "working" incidents on the campus and will typically require moving quickly to greater alarm assignments immediately upon confirmation of a "working" incident. To facilitate efficiency in assigning additional resources, this department has established pre- planned greater alarm assignments and procedures. 4. Second Alarm Assignment for the University A standard "Second Alarm" shall consist of: • Notification of the Fire Chief. • Call back of all off duty suppression personnel. • Dispatch a University public works representative to the Command Post. • Review the next alarm level in anticipation of a request by the Incident Commander. • Notification of Cal-Fire to alert the area coordinator; in anticipation of a request for additional resources (Do no t have them respond unless/until their assistance is actually requested by the Incident Commander). • Notification of San Luis Ambulance Company and reques t a stand-by ambulance. Page 16 of23 Packet Pg. 164 Item 6 5. Third Alarm Assignment for the University If the emergency on the campus exceeds the capabilities of a second alarm assignment as most large working structures fires will do, the Incident Commander shall request a third alarm assignment. The third alarm assignment draws upon the resources of various fire departments throughout the County. Pre-arranged Mutual Aid agreements exist to provide assistance to the requesting agency. The Incident Commander should consider how quickly s/he needs the additional resources. If the first strike team is needed immediately, because of their close proximity to the University (e.g. E21, E12, C.M.C., etc.), they should be requested to respond to the incident's staging area and form up as a strike team upon their arrival. Due to longer travel distances of the second and third strike teams, it is best to request the mutual aid companies as a group and have them respond as a task force or strike team. A task force or strike team will automatically have a task force or strike team leader. Truck companies are always a special request, as are any specialized equipment. A standard "Third Alarm" assignment consists of: • • • • 6. All items inclusive of a "Second Alarm Assignment" . Call back of all Fire Department staff personnel. One or more in-county strike team(s) . All requested mutual aid companies will respond with minimal delay and operate on the specified radio frequency (normally County Net until on scene). Special-Call Assignment for the University Once a First Alarm Assignment has been committed to an emergency at the University, the Incident Commander may request additional companies in the following manner: • • Request a Second or Third Alarm Assignment . Request a "Special-Call Assignment" Some incidents require specialized apparatus or personnel, either in place of, or in addition to , a First, Second or Third Alarm assignment. Examples might be the need for additional ladder trucks, a Hazardous Materials Response unit or a Mass Casualty Response unit. An Incident Commander requiring such specialized resources will access them through City Dispatch. Resources outside of the City will be drawn from the County Emergency Command Center (E.C.C). Once the City Fire Dispatcher receives a request for a special call assignment from the Incident Commander for a non-city resource the following procedure shall be followed: a. San Luis Obispo City Fire Dispatcher will call Cal-Fire via phone and have them notify the Area Coordinator of a mutual aid request for an incident on University's campus . b. Give nature of incident and location of incident. c . List type of assistance required and quantity of units (do not request OES or local government resources specifically-Area Coordinator will decide). d. Give the name of the requesting Incident Commander. Page 17 of23 Packet Pg. 165 Item 6 e. State the urgency of the request; is it immediate need or planned need? f. Request an ETA (Estimated T ime of Arrival) of responding mutual aid units. g. Give staging area location for the mutual aid units. h. Request radio frequency for mutual aid resources and City resources to operate on the incident (usually White 2 unles s Incident Commander specifies otherwise). 7. Principles of Operation for the University The on-duty Battalion Chief or a University Police Officer should be the only person(s) responsible for reducing an initial assignment prior to Fire Department arrival. The first arriving Engine Company Officer may reduce an assignment after their arrival and they have determined it safe to do so. The Fire Chief, Battalion Chief, Company Officer or Dispatcher may increase an initial response a ssignment if there might be a need for additional companies immediately. If the description of the call does not meet the criteria in the response guide and it is not clear as to what should be sent initially, a first alarm assignment should be dispatched immediately. Departure from the standard response assignment is not recommended. When dispatching engine companies the general rule should be: Send the engine company assigned to the University (Engine-2). If another engine company is closer or the first- due company is delayed, the closest engine should be sent. 8. Response Levels Specific to the University University 1st Alarm Assignment = 2 Engines, 1 Ladder Truck, 1 Battalion Chief from City all code 3 1 Engine from Cal-Fire all code 3 CODE TYPE OF INCIDENT 8 8A 8AF 8F 8H 8I 80 8P 8R 8S 8W 8X 8Z 12 Fire, unknown type Fire Alarm (heat, smoke, pull) Fire Alarm, Water Flow Fire, false alarm (not to be used with fire alarms) Fire, electrical hazard Fire, illegal bum Fire, Refuseffrash thr eatening Fire, vehicle Fire, Refuseffrash n on-threatening Fire, structure Fire, wildland (inside or outside core) Fire, train/railcar Fire, aircraft Emergency, not elsewhere classified RESPONSE PLAN 1 st Alarm Assignment 1 eng. code 3 1 eng. code 3, 1 eng. code 2 After incident # 1 st Alarm 1 eng. code 2 1 st Alarm 1 eng. code 3 1 eng. code 3 1 st Alarm 1 eng, 1 B/C code 3 Cal-Fire Response 1st Alarm 1 st Alarm 1 st Alarm or Special call out Page 18 of 23 Packet Pg. 166 Item 6 14 14B 14T 14T 48 48S 53S 57 Fire 83 84M Medical emergency Medical assistance, non-emergency Traffic accident, injuries (in Core area) Traffic accident injuries (outside Core area) Natural Gas leak out side Natural Gas leak inside Smoke check inside Fire reported out Explosion Hazardous materials threatening (State reportable) 1 eng . code 3 1 eng. code 2 1 eng. code 3 1 eng. code 3 1 eng. Cal-Fire code 3 1 eng. code 3 1 eng. code 3, 1 eng. code 2 1 eng. code 3, 1 eng . code 2 1 eng . code 2, Notify Cal- 1 st Alarm 1 st Alarm Page 19 of 23 Packet Pg. 167 Item 6 ATTACHMENT C SERVICE AREA The area of service of this Agreement is described as the area bounded on the south by the City of San Luis Obispo (Slack Street, Longview Avenue, Via Carta, Foothill Blvd.); bounded on the west by the City of San Luis Obispo; out Highway 1 to the Cheda Ranch Complex (included); to the north from the Cheda Ranch Complex to the Union Pacific Railroad right-of-way to the Tartaglia Ranch southern boundary, along the base of the foothills to Poly Canyon Road; and bounded on the east so as to include the facilities at the base of the foothills (Poly Canyon Road, Klamath Road, Deer Road and Grand Avenue-including all structures and parking areas) and also including those areas known as Cerro Vista Housing, Poly Canyon Village and the faculty/staff housing known as Bella Montana which is bordered on the east by Highway 1, on the south by Westmont Street and on the north and west by City jurisdiction. University properties not included in this agreement are outlying structures of the University and wildlands non-contiguous to the main campus of the University. For example: Chorro Creek Ranch, Serrano Ranch, Peterson Ranch and the structures up Poly Canyon. • Refer to Attachment C map of the Service Area including the "core area" to have a visual understanding of how the Service Area is divided. • Refer to Attachment D for definition of the University "core area". • Refer to Attachment D for those areas that are identified to be outside the "core area". Page 20 of23 Packet Pg. 168 Item 6 0 0 .125 0 .25 0.5 0 .75 1 --==--===------==========-----Miles ''\ '·<'·, '·<'-.., '-->----, ~--.. '>.... • .'"· ................ ... ...,........._ ''·....,_ "·,...__ :: :·, .. ,! • N I E w '0 \, ____ _ s ..... CHEDA RANCH TARTAGLIA PROPERTY '-fr:<-> •o~~ ~J.;.s~ .... os.., ~'\_· c:J Service Area I>~< ;,1 Core Area '-..... ~'ft!J~, .. .r" _.-/ Page 21 of 23 Packet Pg. 169 Item 6 ATTACHMENTD SAN LIDS OBISPO CITY AND CAL FIRE RESPONSE TO INCIDENTS WITIDN UNIVERSITY CONTRACT SERVICE AREA 1. Definitions University "Core Area" Please see map in Attachment C • Includes student and faculty housing • East of city limits includ ing Bella Montana • North of city limits from Highland Drive cross of Hwy. 1 to Grand A venue cross of Slack Street • West of Poly Canyon gate including Cerro Vista Housing • South of Highland Drive and Via Carta, including Poly Canyon Village Outside "Core Area" -Please see map in Attachment C • • North of Highland, and University "Core Area" East of city limits • South of San Luis Obispo Treatment Plant, and Tartaglia property including the San Luis Obispo Treatment Plant and Cheda Ranch • West of Via Carta SLO City-San Luis Obispo City Fire Department Cal-Fire-California Department of Forestry and Fire Protection and San Luis Obispo County Fire Department ECC-Cal-Fire/San Luis Obispo County Fire Department Emergency Command Center 2. Response Inside and Outside of "Core Area" Structure Response Inside Core Area SLO City 1 Truck, 2 Engines & Battalion Chief Cal-Fire 1 Engine Structure Response Outside of Core Area SLO City 1 Truck , 2 Engines & Battalion Chief Cal-Fire l Engine & Battalion Chief Wildland Response Inside of Core Area SLO City 1 Engine & Battalion Chief Cal-Fire 1 Engine Wildland Response Outside of Core Area SLO City 1 Engine & Battalion Chief Cal-Fire Appropriate Response per ECC Note: Cal-Fire has jurisdiction by statute on all State Responsibility Areas as defined in PRC 4126 & 4127 . Cal-Fire does not give up any jurisdictional responsibilities for fire s in SRA Medical Aid & Traffic Collision Response SLO City I Engine Inside Core Area Ca l-Fire No Response Medical Aid & Traffic Colli sion Respon se SLO City l Engine Page 22 of23 Packet Pg. 170 Item 6 Outside of Core Area Cal-Fire 1 Engine Vehicle Traffic Collision on Highway I in SLO City 1 Engine Cal-Fire Response Area A36 (Highway l Cal-Fire Response per Cal-Fire Response Plan from Highland to Stenner Creek Road) Haz. Mat. Response Inside and Outside of SLO City l Engine or as appropriate per SLO Core City Response Card Area Cal-Fire l Engine or as Requested 3. Fires on State Property Cal-Fire Investigator or engine mu s t respond to all fires on state property per Health and Safety Code Section 13107. 4. Frequencies Command Inside Core Area -City Net Outside Core Area-Wildland-As Determined by the ECC All Other Incidents-City Net Tactical Inside Core Area -City Tactical Outside Core Area-White 2 or 3 as Determined by ECC 5. Incident Command Responsibility Inside Core Area - Outside Core Area- SLO City Unified Command on All Incidents Page 23 of23 Packet Pg. 171 Item 6 AMENDMENT #1 AGREEMENT FOR EMERGENCY SERVICES BETWEEN CALIFORNIA POLYTECHNIC STATE UNIVERSITY, SAN LUIS OBISPO,THE CITY OF SAN LUIS OBISPO,AND THE COUNTY OF SAN LUIS OBISPO This Amendment #1 to the Agreement for Emergency Services (Agreement)which was originally made and entered into on July 1,2013 by and between California Polytechnic State University, San Luis Obispo (Cal Poly),the City of San Luis Obispo (City),and the County of San Luis Obispo (County),provides for the following change: 5.Term The original term for this Agreement is five years,commencing July 1,2013 and expiring June 30,2018.Prior to the expiration of the Agreement,the parties agreed to meet and discuss renewal of the Agreement,if not sooner terminated as provided in the Agreement.The parties are currently in the process of finalizing the terms for recommended renewal of the Agreement.In order to provide all parties sufficient time to complete review and any further negotiations of the terms and conditions of a new agreement that may be required following review,as well fmalize a new written agreement,the parties agree to extend the expiration date of the Agreement to September 30,2018.Should the parties be unable to negotiate and finalize a new agreement,the Agreement shall expire on September 30,2018,if not sooner terminated as provided in the Agreement.As consideration for this Amendment #1,the parties agree that any financial terms and conditions finally agreed upon by the parties as part of a new agreement shall be retroactive to July 1,2018, the date on which a new agreement was anticipated to be effective prior to this Amendment #1. This Amendment #1 effects no other changes in the terms and conditions of the original Agreement and all provisions shall apply. N WITNESS WHEREOF,Cal Poly,the City and the County have executed this Amendment #1 to the Agreement as of the dates entered below. BOARD Of TRUSTEES OF THE CALIFORNIA STATE UNVIERSITY By:(_Date: Dru Zachmeyer Asst.Vice President,Strategic Business Services, Administration and Finance,California Polytechnic State University,San Luis Obispo 1 of2 Packet Pg. 172 Item 6 Packet Pg. 173 Item 6 1 AGREEMENT FOR ENHANCED EMERGENCY SERVICES BETWEEN THE BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, THE CITY OF SAN LUIS OBISPO, THE COUNTY OF SAN LUIS OBISPO, AND THE STATE OF CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION THIS AGREEMENT is effective July 1, 2018 between the Board of Trustees of the California State University on behalf of California Polytechnic State University, San Luis Obispo (Cal Poly), one of 23 campuses in the California State University system (collectively CSU or the University), the City of San Luis Obispo (City), the County of San Luis Obispo, a political subdivision of the State of California (County), and the State of California Department of Forestry and Fire Protection (Cal Fire). RECITALS WHEREAS, in 1996, Cal Poly discontinued its on-campus fire department and entered into a written agreement with the City for emergency and fire services on a fee-for-service basis whereby the City provided service to the central part of campus, including the campus core, and all on-campus housing structures. The most recent fire and emergency services agreement with the City covers the term July 1, 2013 to June 30, 2018. Because of these agreements, the City has tailored its services to best meet Cal Poly’s needs through purchase of specialized equipment, on-campus training, and inclusion of the Cal Poly campus in its overall strategic emergency service planning. The value of this Agreement has and will continue to increase in proportion to growth of Cal Poly’s academic and extra-curricular programs, activities, facilities, and future student enrollment. WHEREAS, Cal Poly is situated in an unincorporated area of the County, immediately adjacent to the City, with approximately one-third of its students currently living on campus. Cal Poly is within the jurisdiction and service area of the County Fire Department (County Fire) and Cal Fire for fire services. Cal Fire’s response obligations extends to wildland and watershed fire protection, and does not cover structure protection, rescue or emergency services. County Fire is responsible for the protection of buildings and improvements in unincorporated County areas. WHEREAS, under the laws of the State of California, only the State and incorporated cities are obligated to provide fire protection services. The State provides wildland and watershed fire protection within State Responsibility Areas; it does not provide structure protection, rescue and emergency service and hazardous materials response. Counties provide fire services at their discretion, and service levels vary from county to county. WHEREAS, in 1930, the County chose to protect residents and property within its jurisdiction by creating the San Luis Obispo County Fire Department in partnership with Cal Fire. The partnering and consolidation is documented through contractual agreements that direct Cal Fire/County Fire to provide fire protection and emergency response services and shared funding for the provision of such services. As a result, Cal Fire/County Fire share multiple resources, including a fire chief, stations and equipment, command center and firefighters. Cal Fire/County Fire emergency services Packet Pg. 174 Item 6 2 are predominantly focused on semi-rural and rural fire and emergency service needs. Because Cal Poly is located in an unincorporated County area and a State Responsibility Area, Cal Fire and County Fire have jurisdictional fire protection obligations over the campus. The closest Cal Fire/County Fire station is Station 12, which is located on Cal Poly property at 635 N. Santa Rosa Street and across Highway 1 from the campus. This station also serves as Cal Fire’s command center for the County and region. WHEREAS, the City has a robust fire department which is designed to address fire, rescue, and emergency services needed for the predominantly urban/sub-urban land use patterns within the City limits, and to Cal Poly (pursuant to previous written agreements with the City). The City has four fire stations staffed with 45 firefighters. The fire station closest to Cal Poly’s campus is Fire Station 2, located at 132 North Chorro Street. This station currently serves Cal Poly and the north section of the City. WHEREAS, the City and Cal Fire/County Fire have adopted an “automatic mutual aid” doctrine which provides for the closest fire engine to respond to a new emergency regardless of jurisdictional lines. This allows for enhanced service without increasing the number of fire stations or firefighters by utilizing existing resources regionally, rather than just within jurisdictional boundaries. The City and Cal Fire/County Fire have documented their automatic mutual aid agreement through an Operational Plan and Agreement for Automatic Aid dated January 30, 2012 (“Automatic Aid Agreement”) (attached as EXHIBIT E). Through the Automatic Aid Agreement, the City serves as the primary first responder to the Cal Poly campus core (see attached EXIBIT E), with support from Cal Fire/County Fire as needed. The Automatic Aid Agreement exists independent of any agreement between Cal Poly and the City, and obligates the City Fire Department to provide fire and emergency response services to Cal Poly. In exchange, the City receives support from Cal Fire/County Fire for its more rural locations and/or where Cal Fire/County Fire is the closest responder. WHEREAS, the provision of emergency services on the Cal Poly campus is led and coordinated by the University Police Department (UPD) at Cal Poly and is the subject of multiple mutual aid and shared service agreements between Cal Poly, the City, Cal Fire and/or County Fire. With this Agreement, the University desires enhanced fire protection and emergency services for the Cal Poly campus which includes multi-story academic buildings, residence/housing facilities, and dining facilities. WHEREAS , the parties want to continue their Agreement for enhanced emergency services and have the City continue to provide personnel, equipment, materials, and supervision required to respond to structure and other hostile fires (a hostile fire differs from a friendly fire, which burns in a place where it was intended to burn, such as one confined to a fireplace or furnace), medical emergencies, disaster response, and other agreed upon incidents on the main campus of the University; and WHEREAS, the best interests of the City and the University would be served by entering into this Agreement. WHEREAS , the County and Cal Fire consent to the City's continued provision of increased and enhanced fire protection, emergency medical services and specialty rescue services to the University, which is situated within the County's and Cal Fire’s local responsibility area, upon the terms and conditions agreed to by the City and the University as set forth herein. Packet Pg. 175 Item 6 3 NOW, THEREFORE, IT IS AGREED: 1.Services Components The City agrees to provide personnel, equipment, materials, and supervision required to respond to structure and other hostile fires, medical emergencies, disaster response, and other agreed upon incidents in the Service Area, which is the campus core of the University. The specific services shall be more thoroughly outlined as follows: Attachment A Services Performed Attachment B Scope of Service Attachment C Service area Attachment D San Luis Obispo City and Cal-Fire Response to Incidents within University Contract Service Area Attachment E Operational Plan and Agreement for Automatic Aid All services shall be provided in compliance with applicable federal and state laws and regulations, or in the absence of such laws or regulations, in compliance with recognized performance standards for similar services. The City shall respond, within its capacity, to provide services upon being notified by the University. Nothing in this Agreement shall be construed to waive, limit, or impair any defenses, rights, duties, obligations or immunities available to the parties by statute, at law or in equity, or otherwise, in the performance or provision of fire protection and emergency services activities, including under the California Environmental Quality Act (CEQA). 2.Difference in Conditions The University and City recognize differences in design, building and fire code application in the City and on the Cal Poly campus. The California State Fire Marshal has jurisdiction over State property and is responsible for the compliance of facilities and operations with applicable fire and safety codes as well as fire safety design of facilities and supporting infrastructure. The City of San Luis Obispo fire and emergency response resources have been designed to operate within the City. Operations on the campus may be at a disadvantage when conditions such as, but not limited to, accessibility, fire flows, hydrant locations, fixed fire protection systems, and alarms systems are different than conditions within the City of San Luis Obispo. The City and University seek opportunities to collaborate to minimize operational disadvantages when possible; however, neither the University nor the California State Fire Marshal relinquishes their rights and privileges to the City regarding fire and safety codes that apply to the University. 3.Administration a.University The term "University" shall include the State of California, the Board of Trustees of the California State University, California Polytechnic State University, San Luis Obispo, all Auxiliary Organizations, each of their officers, officials, employees, authorized representatives, agents, directors, and volunteers. b.Unified Command In general, emergency operations on the University campus shall be Packet Pg. 176 Item 6 4 conducted through unified command between the City and the University. c.Cooperation To facilitate the performance of the services components (above), it is agreed that the City and University shall fully cooperate with each other, including but not limited to the following: (1) The University will cooperate with the City in assisting with the training of City personnel for familiarization of, and access to, all facilities of the University. (2) University employees, equipment, and supplies (such as trade persons, police, hazardous materials technicians, heavy equipment, emergency management personnel etc.) shall be available for assistance to the City in mitigating emergencies. (3) City personnel shall, upon identification of a life safety and/or fire hazard within the service area not already known to the University, notify the designated University contact and/or University Police Watch Commander. The City's Battalion Chief shall maintain close contact with the University when the City is operating (emergency or non-emergency) on campus. (4) The University will make every effort to notify the agency providing Dispatch services for the City Fire Department of changes in the following areas: access points, road conditions and closures (major thoroughfares only), new buildings or changes in building use, major events and significant changes in hazardous materials storage or use as soon as possible and will confirm in writing. (5) The City will continue to conduct training, provide advice and assistance to the University with issues, such as fire prevention, water system, and hydrant maintenance. The City, when requested by the University, will act as a Technical Specialist on hazardous materials and fire prevention concerns. d.Personnel Status While involved in the execution of this Agreement, regularly employed personnel of the City and the University shall remain employees of their respective agencies, and shall remain subject to the rules and regulations of their own agency in all matters of employment, including but not limited to benefits, medical and life insurance, and worker's compensation insurance. 4.Compensation Compensation for services is calculated based on the primary factor that influences fire, medical and rescue service delivery: campus population. The University will compensate the City for students that reside on-campus in University housing at a different rate than for students that do not reside on campus according to the schedule below. For purposes of this Agreement, the final fall quarter adjusted census information will be used. This census information is reported by the University approximately three to four weeks after the start of the fall quarter. The Fall 2017 adjusted census population as reported by the University was 7,667 University campus residents and 20,801 total full-time equivalent students (FTEs). To smooth reimbursement rates, this census population will lag one year. Packet Pg. 177 Item 6 5 Additionally, the fee will be adjusted annually, starting July 1, 2019, based upon the regional Consumer Price Index (CPI) by averaging the CPIs of Los Angeles and San Francisco. For 2017 the average 2016-17 CPI between the Los Angeles and San Francisco is 3.01% as areas as shown in Attachment F. Campus Population Per Capita Payment Schedule Contract Year 1 (2018/19) Contract Year 2 (2019/20) Contract Year 3 (2020/21) Contract Year 4 (2021/22) Contract Year 5 (2022/23) Fee per University student residing on- campus $25.00 Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted Fall census 7,667 (2017) As reported in 2018 As reported in 2019 As reported in 2020 As reported in 2021 Subtotal $191,675 Fee per University student population not residing on campus $7.95 Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted per CPI Adjusted Fall census 13,134 (2017) As reported in 2018 As reported in 2019 As reported in 2020 As reported in 2021 Subtotal $104,415 TOTAL $296,090 The University will pay City in accordance with the above schedule. These annual sums will be paid in four equal installments in advance each quarter beginning July 1 for the duration of the Agreement. In addition, the University will pay the City at the end of each contract year for additional services as defined in Attachment A section 7, for services requested and received by the University. 5.Term The term for this Agreement shall be five years, commencing July 1, 2018 and expiring June 30, 2023, and will include an option for up to two three-year contract extension periods. Prior to the expiration of this Agreement, the parties agree to meet and discuss renewal of this Agreement, if not sooner terminated as provided herein. 6.Reports The City will provide a monthly written report to the University identifying emergency response activities to the Cal Poly campus in accordance with all applicable local, state, and federal privacy laws. 7.Termination Packet Pg. 178 Item 6 6 Either party, upon six (6) months advance written notice, may terminate this agreement. 8.Indemnification The City shall defend, indemnify, hold harmless and protect the State of California, the Trustees of the California State University, California Polytechnic State University, San Luis Obispo, all Auxiliary Organizations, and each of their officers, officials, employees, authorized representatives , agents, and volunteers from and against any and all costs, damages, expenses, liability, losses of every nature arising out of or in connection with City's (including any subcontractor, anyone directly or indirectly employed by anyone for whose acts any of them may be liable) performance hereunder or failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the University. Nothing in this Agreement is intended to create duties or obligations to or rights in third parties not parties to this contract or affect the legal liability of either party by imposing any standard of care respecting emergency services different from the standard of care imposed by law. It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the University under or in connection with any work, authority or jurisdiction delegated to the University under this Agreement. It is also understood and agreed that University shall defend, indemnify and save harmless the City, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the University under or in connection with any work, authority or jurisdiction delegated to the University under this Agreement except as otherwise provided by statute. The University shall defend, indemnify, hold harmless and protect the City, and its officers, employees, representatives, agents and volunteers from and against any and all cost, damage, expense, liability, loss of every nature arising out of or in connection with University's performance hereunder or failure to comply with any of its obligations contained in this Agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City. 9.Insurance Requirements The City shall not commence Work until it has obtained all the insurance required in this Contract, and such insurance has been approved by the CSU. a.Policies and Coverage (1) The City shall obtain and maintain the following policies and coverage: (i) Comprehensive or Commercial Form General Liability Insurance, on an occurrence basis, covering Work done or to be done by or on behalf of the City and providing insurance for bodily injury, personal injury, and property damage (2) The City also may be required to obtain and maintain the following policies and coverage: Packet Pg. 179 Item 6 7 (i) Other Insurance by agreement between the Trustees and the City. b.Verification of Coverage The City shall submit original certificates of insurance and endorsements to the policies of insurance required by the Contract to the Trustees as evidence of the insurance coverage. The Trustees reserve the right to require the City to furnish the Trustees complete, certified copies of all required insurance policies. c.Insurance Provisions Nothing in these insurance provisions shall be deemed to alter the indemnification provisions in this Agreement. The insurance policies shall contain, or be endorsed to contain, the following provisions. (1) For the general and automobile liability policies, the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents are to be covered as additional insureds. (3) Each insurance policy required by this section shall state that coverage shall not be canceled by either the City or the insurance carrier, except after thirty (30) Days prior written notice by certified mail, return receipt requested, has been given to the Trustees. (4) The State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents shall not by reason of their inclusion as additional insureds incur liability to the insurance carriers for payment of premiums for suchinsurance. d.Amount of Insurance (2) For any claims related to the Work, the City’s insurance coverage shall be primary insurance as respects the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents. Any insurance or self-insurance maintained by the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents shall be in excess of the City’s insurance and shall not contribute with it. (1) The City of San Luis Obispo has elected to be self-insured for its general liability, vehicle liability, workers’ compensation and property exposures through the California Joint Powers Insurance Authority. As a member of the California Joint Powers Insurance Authority, the City of San Luis Obispo is included in this self-insured program. And shall provide coverage in amounts not less than the following: (i) Comprehensive or Commercial FormGeneral Liability Insurance--Limits of Liability $2,000,000 General Aggregate $1,000,000 Each Occurrence--combined single limit for bodily injury and property damage. Packet Pg. 180 Item 6 8 Police Chief California Polytechnic State University San Luis Obispo, CA 93407 City: Fire Chief San Luis Obispo City Fire Department 2160 Santa Barbara Ave. San Luis Obispo, CA 93401-5240 University: Any notice required to be given pursuant to the terms and provisions of this Agreement shall be in writing and shall be sent by certified or registered mail to the: The University recognizes there will be priorities that will dictate the City's capabilities. Subsequent to prioritizing emergencies based on life safety, the City will deliver available resources to assist the University in its mitigation efforts. If additional emergency response resources are needed, they will be accessed through the Mutual Aid system already in place. 11. Notices 10. Priorities e.Miscellaneous (1) Any deductible under any policy of insurance required in this Contract shall be City’s liability. (2) Acceptance of certificates of insurance by the Trustees shall not limit the City’s liability under the Contract. (3) In the event the City does not comply with these insurance requirements, the Trustees may, atitsoption, provide insurance coverage to protect the Trustees. The cost of the insurance shallbepaidbythe City and, if prompt payment is not received, may be deducted from Contract sums otherwise due the City. (4) If the Trustees are damaged by the failure of City to provide or maintain the required insurance, the City shall pay the Trustees for all such damages. (5) The City’s obligations to obtain and maintain all required insurance are non-delegable duties under this Contract. (ii) Workers’ Compensation limits as required by law with Employers Liability limits of $1,000,000. Packet Pg. 181 Item 6 9 CAL FIRE By:___________________________ Scott Jalbert, Chief SAN LUIS OBISPO COUNTY By:__________________________ County Board of Supervisors Heidi Harmon, Mayor By: CITY OF SAN LUIS OBISPO Dru Zachmeyer Administration & Finance By: BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY IN WITNESS THEREOF, City, County, Cal Fire, and University have executed this Agreement as follows: This Agreement represents the entire Agreement between the City and the University, and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by written instrument, signed by both City and University. All provisions of this Agreement are expressly made conditions. This Agreement shall be governed by the laws of the State of California. 12. Entire Agreement County Administrative Officer 1055 Monterey Street San Luis Obispo, CA 93408 Fire Chief 635 N. Santa Rosa Street San Luis Obispo, 93405 Cal Fire: County: Packet Pg. 182 Item 6 10 ATTACHMENT A SERVICES PERFORMED 1.Fire Suppression City shall provide personnel, equipment, materials and supervision for suppression of structure and other hostile fires on the campus core (Service Area) of the University, as available. Fire suppression shall include those universally accepted activities, which bring a hostile fire under control and render the property safe from further damage. Fires to be suppressed shall include (but are not limited to): structure, rubbish, trash container, automobile, vegetation adjacent to structure and other such fires which are evaluated from the initial report to be of significance or beyond the capabilities of the University's response. 2.Extrication/Rescue Emergencies City shall provide personnel, materials, equipment and supervision for emergency extrication of students, faculty, staff, guests, and visitors on the campus core (Service Area) of the University, as available. Rescue includes: extrication of trapped persons from vehicles, machinery, cave-ins, structure collapses, confined spaces, fire, and other significant situations, which may require assistance. The City will provide emergency medical treatment for rescue situations, as it is available. The City's response to elevator problems will be limited to situations where the University has determined that an emergency exists. 3.Fire Alarms The University shall maintain all campus alarm systems. University personnel will evaluate a reporting alarm prior to notifying City dispatch. The City shall respond one engine "Code 3" and one engine "Code 2" to water flow alarms in buildings with sprinkler systems. The University will screen all other alarms and will notify the City when confirmation is made that a fire or other emergency is in progress or likely. 4.Pre-Hospital Emergency Care University has established an Emergency Medical Dispatch (EMD) program that will determine the priority' of a medical emergency and provide pre-arrival instructions to the caller. The City agrees to provide emergency medical support to the University for Priority One (ALS) type calls as outlined in the EMD Program. 5.Hazardous Materials City shall provide trained personnel as indicated by the Code of Federal Regulations 29 Packet Pg. 183 Item 6 11 "First Responder Capabilities" to the University, as available. It is the intent that the City will share in a unified command of any hazardous materials incidents based on the availability of responding University personnel. Response to the threat of or release of hazardous materials shall include: evacuation of affected area, identification of substances, containment of substances, protective actions for people, environment and property. The University will provide technical support of qualified staff (within the University's capacity and to the extent available) to assist the City with hazardous materials response. The City will provide supplies and materials normally associated with first response. The University will arrange for hazardous materials response beyond the capability of the City including the removal and disposal of the hazardous material(s). The City shall act, when required, as the University's representative on the San Luis Obispo County Regional Hazardous Materials Response Team. The University will continue to participate on the team during the term of the agreement. The City and the University will operate a unified command on any hazardous materials emergency that should occur on the campus. The University will maintain its status as a participating agency/region in the San Luis Obispo Regional Hazardous Materials Response Team. 6. Disaster Preparedness The University has developed and maintains at a high state of readiness, a multi-hazard disaster response plan. Included in this plan is the establishment and operation of a University Emergency Operations Center as well as annexes addressing the roles of operational units of the University. The Fire Department agrees to work cooperatively with the University in following, the University's disaster plans as resources allow. The University shall provide to the City one copy of the University's disaster response plan and annual updates. 7. Additional Services Special non-emergency situations, not specifically covered in this Agreement, may arise that are determined by the University to require resources beyond their capabilities. When requested by the University, the City may provide, at its sole discretion, resources if available. The University will compensate the City in accordance with the City Council adopted cost of services study, which is annually adjusted by the Consumer Price Index as referenced in section 4, “Compensation”, of the agreement. The following are examples of Fire Department additional services that may be available: • flooding/storm response • smoke removal • electrical hazard • bomb threats (not including Bomb Task Force) • pipeline ruptures/water control • animal rescues • special events/crowd control/civil disturbances • non-emergency stand-by Packet Pg. 184 Item 6 12 ATTACHMENT B SCOPE OF SERVICE The San Luis Obispo City Fire Department will respond to the University as outlined below. The San Luis Obispo Fire Department agrees that 90% of the time it will initiate response within 60 seconds of the request during day-time hours (0800-2000) and 90 seconds at night-time (2000- 0800). The Fire Chief and the Fire Department leadership staff are dedicated to continuing to partner with University and student leadership to positively impact safety and safe decision making by students, including but not limited to engagement opportunities during new student orientation, Week of Welcome, and graduation. 1. First Alarm Assignment for the University A standard "First Alarm" assignment for the University shall consist of 2 engines, 1 ladder truck and 1 Battalion Chief code 3 from the City and 1 engine code 3 from Cal-Fire. The use of a move-up company to cover Fire Station One is required. 2. Reduced Assignment for the University The incident being reported may not require a first alarm assignment and may, therefore, require the dispatcher to send a reduced assignment to the emergency. Anything less than a first alarm assignment is considered to be a reduced assignment. 3. Greater Alarm Assignments for the University When an Incident Commander determines that the resources at hand may not be sufficient to both alleviate the threat presented at the University and provide adequate coverage to the City, s/he has an obligation to call for additional resources in a timely manner. This is especially critical with "working" incidents on the campus and will typically require moving quickly to greater alarm assignments immediately upon confirmation of a "working" incident. To facilitate efficiency in assigning additional resources , this department has established pre- planned greater alarm assignments and procedure s. 4. Second Alarm Assignment for the University A standard "Second Alarm" shall consist of: • Notification of the Fire Chief. • Call back of all off duty suppression personnel. • Dispatch a University public works representative to the Command Post. • Review the next alarm level in anticipation of a request by the Incident Commander. • Notification of Cal-Fire to alert the area coordinator; in anticipation of a request for additional resources (Do not have them respond unless/until their assistance is actually requested by the Incident Commander). • Notification of San Luis Ambulance Company and request a stand-by ambulance. Packet Pg. 185 Item 6 13 5.Third Alarm Assignment for the University If the emergency on the campus exceeds the capabilities of a second alarm assignment as most large working structures fires will do, the Incident Commander shall request a third alarm assignment. The third alarm assignment draws upon the resources of various fire departments throughout the County. Pre-arranged Mutual Aid agreements exist to provide assistance to the requesting agency. The Incident Commander should consider how quickly s/he needs the additional resources. If the first strike team is needed immediately, because of their close proximity to the University (e.g. E21, El2, C.M.C ., etc.), they should be requested to respond to the incident's staging area and form up as a strike team upon their arrival. Due to longer travel distances of the second and third strike teams, it is best to request the mutual aid companies as a group and have them respond as a task force or strike team. A task force or strike team will automatically have a task force or strike team leader. Truck companies are always a special request, as are any specialized equipment. A standard ''Third Alarm" assignment consists of: •All items inclusive of a "Second Alarm Assignment ".•Call back of all Fire Department staff personnel.•One or more in-county strike team(s).•All requested mutual aid companies will respond with minimal delay and operate on the specified radio frequency (normally County Net until on scene). 6.Special-Call Assignment for the University Once a First Alarm Assignment has been committed to an emergency at the University, the Incident Commander may request additional companies in the following manner: •Request a Second or Third Alarm Assignment. •Request a "Special-Call Assignment " Some incidents require specialized apparatus or personnel, either in place of, or in addition to, a First, Second or Third Alarm assignment. Examples might be the need for additional ladder trucks, a Hazardous Materials Response unit or a Mass Casualty Response unit. An Incident Commander requiring such specialized resources will access them through City Dispatch . Resources outside of the City will be drawn from the County Emergency Command Center (E.C.C). Once the City Fire Dispatcher receives a request for a special call assignment from the Incident Commander for a non-city resource the following procedure shall be followed: a.San Luis Obispo City Fire Dispatcher will call Cal-Fire via phone and have them notify the Area Coordinator of a mutual aid request for an incident on University's campus. b.Give nature of incident and location of incident. c.List type of assistance required and quantity of units (do not request OES or local government resources specifically - Area Coordinator will decide). d.Give the name of the requesting Incident Commander. Packet Pg. 186 Item 6 14 e.State the urgency of the request; is it immediate need or planned need? f.Request an ETA (Estimated Time of Arrival) of responding mutual aid units. g.Give staging area location for the mutual aid units. h.Request radio frequency for mutual aid resources and City resources to operate on the incident (usually White 2 unless Incident Commander specifies otherwise). 7.Principles of Operation for the University The on-duty Battalion Chief or a University Police Officer should be the only person(s) responsible for reducing an initial assignment prior to Fire Department arrival. The first arriving Engine Company Officer may reduce an assignment after their arrival and they have determined it safe to do so. The Fire Chief, Battalion Chief, Company Officer or Dispatcher may increase an initial response assignment if there might be a need for additional companies immediately. If the description of the call does not meet the criteria in the response guide and it is not clear as to what should be sent initially, a first alarm assignment should be dispatched immediately. Departure from the standard response assignment is not recommended. When dispatching engine companies the general rule should be: Send the engine company assigned to the University (Engine-2). If another engine company is closer or the first- due company is delayed, the closest engine should be sent. 8.Response Levels Specific to the University University 1st Alarm Assignment = 2 Engines, 1 Ladder Truck, 1 Battalion Chief from City all code 3 1 Engine from Cal-Fire all code 3 CODE TYPE OF INCIDENT RESPONSE PLAN 8 8A 8AF 8F 8H 81 80 8P 8R 8S 8W 8X 8Z 12 Fire, unknown type Fire Alarm (heat, smoke, pull) Fire Alarm, Water Flow Fire, false alarm (not to be used with fire alarms) Fire, electrical hazard Fire, illegal burn Fire, Refuse/T rash threatening Fire, vehicle Fire, Refuse/Trash non-threatening Fire, structure Fire, wildland (inside or outside core) Fire, train/railcar Fire, aircraft Emergency, not elsewhere classified 1st Alarm Assignment 1 eng. code 3 1 eng. code 3, 1 eng. code 2 After incident # 1st Alarm 1 eng. code 2 1st Alarm 1 eng. code 3 1 eng. code 3 1st Alarm 1 eng., 1 B/C code 3 Cal-Fire Response 1st Alarm 1st Alarm 1st Alarm or Special call out Packet Pg. 187 Item 6 15 14 Medical emergency 14B Medical assistance, non-emergency 14T Traffic accident, injuries (in Core area) 14T Traffic accident injuries (outside Core area) 48 Natural Gas leak outside 48S Natural Gas leak inside 53S Smoke check inside 57 Fire reported out 1 eng. code 3 1 eng. code 2 1 eng. code 3 1 eng. code 3 1 eng. Cal-Fire code 3 1 eng. code 3 1 eng. code 3, 1eng. code 2 1 eng. code 3, 1eng.code 2 1 eng. code 2, Notify Cal-Fire 83 Expl osion 1st Alarm 84M Hazar dous materials threatening (State reportable) 1st Alarm Packet Pg. 188 Item 6 16 ATTACHMENT C SERVICE AREA The area of service of this Agreement is described as the area bounded on the south by the City of San Luis Obispo (Slack Street, Longview Avenue, Via Carta, Foothill Blvd.); bounded on the west by the City of San Luis Obispo; out Highway 1 to the Cheda Ranch Complex (included); to the north from the Cheda Ranch Complex to the Union Pacific Railroad right-of-way to the Tartaglia Ranch southern boundary, along the base of the foothills to Poly Canyon Road; and bounded on the east so as to include the facilities at the base of the foothills (Poly Canyon Road, Klamath Road, Deer Road and Grand Avenue - including all structures and parking areas) and also including those areas known as Cerro Vista Housing, Poly Canyon Village and the faculty/staff housing known as Bella Montana which is bordered on the east by Highway 1, on the south by Westmont Street and on the north and west by City jurisdiction. University properties not included in this agreement are outlying structures of the University and wildlands non-contiguous to the campus core of the University. For example: Chorro Creek Ranch, Serrano Ranch, Peterson Ranch and the structures up Poly Canyon. • Refer to Attachment C map of the Service Area including the "core area" to have a visual understanding of how the Service Area is divided. • Refer to Attachment D for definition of the University "core area". • Refer to Attachment D for those areas that are identified to be outside the "core area". Packet Pg. 189 Item 6 X X CHEDA RANCH TARTAGLIA PROPERTY Service Area Core Area HIG H L A N D S A N T A R O S A G R A N D SLACK MT. BISHOP ST E N N E R C R E E K Facility Services Facilities Planning and Capital Projects O: \ P l a n r o o m \ P l a n r o o m P r o j e c t s \ _ m a p s - o - r a m a \ B a s e m a p P S _ S p e c i a l . d w g 8.21.2018 ServiceMap_Letter Peter F Weber BasemapPS_Special.dwg Service Map Service Map 1"=1500'17 Packet Pg. 190 Item 6 18 ATTACHMENT D SAN LUIS OBISPO CITY AND CAL FIRE RESPONSE TO INCIDENTS WITHIN UNIVERSITY CONTRACT SERVICE AREA 1. Definitions University " Core Area" Please see map in Attachment C • Includes student and faculty housing • East of city limits including Bella Montana • North of city limits from Highland Drive cross of Hwy. 1 to Grand Avenue cross of Slack Street • West of Poly Canyon gate including Cerro Vista Housing • South of Highland Drive and Via Carta, including Poly Canyon Village Outside "Core Area" - Please see map in Attachment C • North of Highland, and University "Core Area" • East of city limits • South of San Luis Obispo Treatment Plant, and Tartaglia property including the San Luis Obispo Treatment Plant and Cheda Ranch • West of Via Carta SLO City - San Luis Obispo City Fire Department Cal-Fire- California Department of Forestry and Fire Protection and San Luis Obispo County Fire Department ECC - Cal-Fire/San Luis Obispo County Fire Department Emergency Command Center 2. Response Inside and Outside of "Core Area" Structure Response Inside Core Area SLO City Cal-Fire 1 Truck, 2 Engines & Battalion Chief 1 Engine Structure Response Outside of Core Area SLO City Cal-Fire 1 Truck, 2 Engines & Battalion Chief 1 Engine & Battalion Chief Wildland Response Inside of Core Area SLO City Cal-Fire 1 Engine & Battalion Chief 1 Engine Wildland Response Outside of Core Area SLO City Cal-Fire 1 Engine & Battalion Chief Appropriate Response per ECC Note: Cal-Fire has jurisdiction by statute on all State Responsibility Areas as defined in PRC 4126 & 4127. Cal-Fire does not give up any jurisdictional responsibilities for fires in SRA Medical Aid & Traffic Collision Response Inside Core Area SLO City Cal-Fire 1 Engine No Response Medical Aid & Traffic Collision Response SLO City 1 Engine Packet Pg. 191 Item 6 19 Outside of Core Area Cal-Fire 1 Engine Vehicle Traffic Collision on Highway l in Cal-Fire Response Area A36 (Highway l from Highland to Stenner Creek Road) SLO City Cal-Fire 1 Engine Response per Cal-Fire Response Plan Haz. Mat. Response Inside and Outside of Core Area SLO City Cal-Fire 1 Engine or as appropriate per SLO City Response Card l Engine or as Requested 3. Fires on State Property Cal-Fire Investigator or engine must respond to all fires on state property per Health and Safety Code Section 13107. 4. Frequencies Command Inside Core Area: City Net Outside Core Area: Wildland -As Determined by the ECC All Other Incidents -City Net Tactical Inside Core Area: City Tactical Outside Core Area: White 2 or 3 as Determined by ECC 5. Incident Command Responsibility Inside Core Area: SLO City Outside Core Area: Unified Command on All Incidents Packet Pg. 192 Item 6 OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID BETWEEN SAN LUIS OBISPO CITY FIRE DEPARTMENT AND CAL FIRE/SAN LUIS OBISPO COUNTY FIRE DEPARTMENT PURPOSE This Operational Plan and Agreement for Automatic Aid is made and entered into by and between the San Luis Obispo City Fire Department (SLO) and CAL FIRE/San Luis Obispo County Fire Department (CALFIRE/Co. Fire). This Operation Plan and Agreement includes the following items: • Jurisdictional Responsibility • Guidelines Governing Response to an Emergency • Release of Resources • Types of Responses Covered • Response Area Dispatching Specifics • Standard Response Area Matrix • Communications/Dispatch • Resource Availability • Joint Training • Terms of Agreement • Authorized Agreement Signatures JURISDICTIONAL RESPONSIBILITY Each agency shall retain all authority and responsibility for all incidents occurring within their jurisdiction. All emergency equipment responding to the same emergencies as part of this agreement shall work under the direction of the Incident Commander assigned by the agency having jurisdiction of the Incident upon arrival to the incident. GUIDELINES GOVERNING RESPONSE: The purpose of this agreement is to most efficiently use resources that are closest to the incident regardless of jurisdictional lines. The assistance provided through this agreement shall be above and beyond those resources sent by the agency having jurisdiction. Page 1 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 20 Packet Pg. 193 Item 6 RELEASE OF RESOURCES The Incident Commander should make every attempt to release other agency resources as soon as possible. If that is not practical due to the commitment of resources at the emergency scene, then the Incident Commander will notify the on scene officer from the other agency of the time extension. TYPES OF RESPONSES COVERED Only emergencies that would normally require immediate response by responding emergency vehicles are intended to be covered by this Agreement. These can typically be categorized as calls where life or property is in danger. Calls for public service, permit inspections, post fire investigations, and responses which do not require immediate response by the responding fire vehicles shall not be a part of this Agreement. The specific types of emergencies involved and resources assigned shall be identified for the response area. The base premise of this plan assumes that any specific resources identified by this plan to be dispatched are available and in their respective normally assigned response area. Should this not be the case at the time of the dispatch, the resources dispatched by either agency will be the closest available resources. RESPONSE AREA DISPATCHING SPECIFICS 1. SLO City Fire shall respond automatically to assist CAL FIRE/SLO Co. Fire with the closest engine or truck, and chief officer as needed, in response areas A4, A 8, A 12, A 17, A 20, A21, A22, A33, A-34, A35, A 36, A37, and A 38 shown on attached map for all emergency incidents. 2. SLO City Fire shall respond automatically to assist CAL FIRE/SLO Co. Fire with the closest engine or truck, and chief officer as needed in response areas A2, A4, A5, A5A A5S, A 8, A9, A10,A 10A, A 10B, A 12, A 14, A 17, A 20A21 , A22, A 23, A 24, A 28, A 33, A-34, A35, A 36, A37, and A 38 shown on attached map for all emergency incidents with the exception of medical aid incidents. 3. CAL FIRE/SLO Co Fire shall respond automatically to assist SLO, one engine, and one chief officer as needed anywhere in the city of San Luis Obispo or on Cal Poly campus, closest available for Structure Fires or other incidents as requested. 4. CAL FIRE/SLO Co will respond one emergency response unit from Station 21-San Luis Obispo County Airport Fire Station automatically to assist SLO for all emergency incidents, in areas identified as the Tank Farm Road Response Area identified by SLO City. Page 2 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 21 Packet Pg. 194 Item 6 The Tank Farm Road Response Area is identified as: • South of the intersection of Broad Street and Industrial Way, including address accessed off of Industrial Way • South of San Luis Obispo portion of Tank Farm Road including address accessed off of Tank Farm Road, west to South Higuera • East of South Higuera from Tank Farm Road to the San Luis Obispo City limits (includes any address on S. Higuera-South of Tank Farm Road) • West or San Luis Obispo City Limits along Orcutt Road including The Arbors subdivision. • North of the San Luis Obispo City Limits between South Higuera and Orcutt Road 5. The Bishop Peak Natural Reserve Area is within the jurisdiction of both CAL FIRE/SLO Co. and SLO City. Upon notification of an emergency, the receiving command center will initiate a dispatch and then notify the other command center immediately. As soon as possible, the command center and/or responding officer will determine: • Jurisdiction of the Incident • Determine the appropriate command structure (unified or single command) • ICS facilities (ICP, Staging Areas and Operational Structure) • Unified Ordering Point (SLO or SLU ECC) • Command/Tac Frequencies (Repeatable). • Objectives, Strategic and Tactical Plan This information will be broadcast on the appropriate Command Frequency and transmitted to the cooperating command center and incoming resources. Please see Standard Response Area Matrix below for specific call type and standard response Page 3 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 22 Packet Pg. 195 Item 6 I. STANDARD RESPONSE AREA MATRIX -INCLUDES MEDICAL AIDS CAL FIRE/Co Fire A4, A8,A12,A17, A20,A21, Jurisdiction A22. A·34 A35 A 36 A37 A 38 IN ""':NT TYPE SLO RESPONSE cAL FIRE/CoFireBESPQNS~ ResQonse area Chief Eng Sqd Trk Batt Engine Water Squad Other Off. Or Chief Tender Trk FSR 1 1 1 3 1 1 BSU, INV R Fire FSC 1 1 1 3 1 1 BSU, DUTY, Commercial Structure Fire Type INV II FSM 1 1 1 3 1 BSU Multi Family Structure Fire i FSO 1 1 2 INV Fke, ,m : Other FSRW 1 1 1 5 1 1 1 AIR Fire, Res Structure Wildland (3 type DUTY 3) INV FOO 1 1 INV Fire, Other FVP 1 2 P"....nu..r Vehicle Fire FVC 1 1 1 3 1 1 INV Commercial Vehicle Fire FVCT 1 1 1 3 1 1 1 AIR Train FirefDerail 1 Truck 1 LEHelo TRT DUTY I INV FWLL 1 1 3 1 AIR,INV Wildland Fire, Low Dispatch (2 type 3) FWLM 1 1 1 5 1 1 AIR, Wildland Fire, Medium (4 type 2TANKER Dispatch 3) 1 COPTER lDozer, 2Hand Crew DUTY INV FWLH 1 1 1 7 1 1 AIR, Wildland Fire, High Dispatch (5 type 3TANKER 3) I COPTER 2Dozer, 3Hand Crew DUTY INV Page 4 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 23 Packet Pg. 196 Item 6 MED 1 1 Code 3 Medical Aid MEDC2 1 Code 2 Medical Aid MRECLF 1 1 2 1 TRT Cliff Res()ue DUTY MTC 1 2 1 Tratf~Col1~on MTX 1 1 2 1 EMSl Traffic ('nl1kinn .".,. MTCV 1 1 1 2 1 EMSl Traffic Collision DUTY wi Mllltinl", Ve_hic1es MTCM 1 1 1 2 1 EMS} Traffic Collision DUTY w/U' I.;· Casualty MEDM 1 1 1 3 1 Mass ('~.I1"ltv Incident MRESWF 1 1 2 2 TRT Swift Water Rescue DUTY MRECS 1 1 2 2 BSU Confined Space Rescue 1 Handcrew DECONor USAR TRT DUTY MRETCH 1 1 2 2 BSU Trench Rescue 1 Handcrew DCON I or USAR TRT DUTY MREUSR 1 1 3 2 DUTY Urban Search & Rescue TRT MEDCTI 1 1 1 1 1 1 CRASH Med. CAT 1 Aircraft IAMB Airport Mgr l)UTY MEDCT2 1 1 1 2 1 1 1 CRASH CAT 2 Aircraft IAMB AirportMgr DUTY MEDCT3 1 1 1 1 4 1 1 } CRASH CAT 3 Aircraft 1 AMB Airport Mgr DUTY MEDCT4 1 1 3 1 1 DUTY Single Engine Aircraft, off- site MEDCT5 1 1 1 1 3 1 1 DUTY Multi Engine Aircraft, off-site TRT INV Page 5 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 24 Packet Pg. 197 Item 6 II. STANDARD RESPONSE AREA MATRIX -EXCLUDES MEDICAL AIDS CAL FIRE/Co Fire Jurisdiction A2, A4, A5, A5A A5B, A 8, A9, A10,A 10A, A 10B, A 12, A 14, A 17, A 20 A21, A22, A 23, A 24, A 28 A 33 A-34 A35, A 36 A37 A 38 IN :11 ,....:NT TYPE SLO ~:spuNSE -CALFIR.EiCo -pire RESPONSE Res120nse ilrea Chief Off. Eng or Trk Sqd Trk Batt . Chief Engine Water Tender Squad Other FSR R <:;tn."tnr'l Fire 1 1 1 3 1 1 BSU, lNV FSC Commercial Structure Fire 1 1 1 3 1 1 Type II BSU, DUTY, lNV FSM Mlilii Family , Fire 1 1 1 3 1 BSU FSO Fire, ", Other 1 1 2 lNV FSRW Fire, Res Structure Wildland 1 1 1 5 (3 type 3) 1 1 1 AIR DUTY lNV FOO Fire, Other 1 1 lNV FVP I Vehicle Fire 1 2 FVC r, ,1 Vehicle Fire 1 1 1 3 1 1 lNV FVCT Train FirelDeraii 1 1 1 3 1 1 1 AIR I Truck 1 LE Helo TRT DUTY INV FWLL Wildland Fire, Low Dispatch 1 1 3 (2 type 3) 1 AIR, INV FWLM Wildland Fire, Medium Dispatch 1 1 1 5 (4 type 3) 1 1 AIR, 2TANKER 1 COPTER IDozer, 2Hand Crew DUTY INV FWLH Wildland Fire, High Dispatch 1 1 1 7 (5 type 3) 1 1 AIR, 3TANKER 1 COPTER 2Dozer,3Hand Crew DUTY INV Page 6 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 25 Packet Pg. 198 Item 6 MED 1 Code 3 Medical Aid MEDC2 1 Code 2 Medical Aid MRECLF 1 1 2 1 TRT Cliff Rescue I DUTY MTC 1 2 1 Traffic Collision MTX 1 1 2 1 EMS I Traffic Collision ,~ MTCV 1 1 1 2 1 EMS} Traffic Collision DUTY w/l\,f..h;~IA Vehicles MTCM 1 1 I 2 I EMS I Traffic Collision DUTY wI MultlPle rMll"hv MEDM 1 1 1 3 1 Mass ~ _L Incident MRESWF 1 1 2 2 TRT Swift Water Rescue DUTY MRECS 1 1 2 2 BSU Confined Space Rescue 1 Handcrew DECONor USAR TRT DUTY MRETCH 1 1 2 2 BSU Trench Rescue 1 Handcrew DCON lor USAR TRT DUTY MREUSR 1 1 3 2 DUTY Urban Search & Rescue TRT MEDCTl 1 1 1 1 1 1 CRASH Med. CAT I Aircraft IAMB AirportMgr DUTY MEDCT2 1 1 1 2 1 1 1 CRASH CAT 2 Aircraft 1 AMB AirportMgr DUTY MEDCT3 1 1 1 1 4 1 1 1 CRASH CAT 3 Aircraft 1 AMB AirportMgr DUn MEDCT4 1 1 3 1 1 DUTY Single Engine Aircraft, off- site MEDCT5 1 1 1 1 3 1 1 DUTY Multi Engine Aircraft, off-site TRT INV Page 7 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 26 Packet Pg. 199 Item 6 III. STANDARD RESPONSE AREA MATRIX -ALL CITY SLOCity In all Dispatch Areas of SLO City Jurisdiction mCI uENTTYPE SL<21<bS_PONSE CAL FIRE/Co Fire RESPONSE ResI!ons~ area g~~f Eng Sqd Trk Batt Engine ie::~r Squad Other Chief FSR 1 3 1 1 1 R, <" Fire FSC 1 3 1 1 1 L II Structure Fire FSM 1 3 1 1 1 Multi Family Structure Fire FSO 1 3 1 1 1 Fire, Structure Other FSRW 1 3 1 1 1 Fire, Res Wihm,uu FOD 1 Debris Fire, unless otherwise defined FOO 1 Fire, Qther FVP 1 P"Q~nrr"'r Veh~Fire FVC 1 Commercial Vehicle Fire FVCT 1 3 1 Train '7irelDerail FWLCD 1 Fire, Center Div~ant ~ FAA 1 3 1 Aircraft Fire FWLL 1 3 1 1 Wildland Fire, Low FWLM 1 3 1 1 Wildland Fire, Medium FWLH 1 3 1 2 Wildland Fire, High Dispatch MED 1 Code 3 Medical Aid MEDC2 1 Cod~2 Medical Aid MRECLF 1 1 1 Cliff Rescue MTC 1 Traffic Collision Page 8 of 13 January 3D, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 27 Packet Pg. 200 Item 6 Search & Rescue 3 1 3 3 off-site MTX 1 2 Traffic Collision wlExtrication MTCV 21 Traffic Collision wI Vehicles MTCM 3 Traffic Collision wi MEDM 3 Mass Incident MRESWF 2 1 MRETCH Trench Rescue MREUSR Page 9 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 28 Packet Pg. 201 Item 6 IV. STANDARD RESPONSE AREA MATRIX -TANK FARM RESPONSE AREA SLO City Jurisdiction Tank Farm Response Area Only INClDb:NT TYPE SLO RESPONSE CAL FIRE/Co Fire RESPON:SC Res.Qons~ area Chief Off. Eng Sqd . Trk Batt Chief Engine Water Tender Squad Other FSR Residential Fire 1 3 1 1 1 FSC Commercial Structure Fire 1 3 1 1 1 FSM Multi Family Structure Fire 1 3 1 1 1 FSO Fire, Structure Other 1 3 1 1 I 1 FSRW Fire, Re~."uu..,u,,;; Wildland 1 3 1 1 1 FOD Debris Fire, unless otherwise defilled 1 1* FOO Bre, Other 1 1* FVP D. . Vehicle Fire 1 1* FVC ,... Vehicle Fire 1 1 FVCT Train FirelDerail 1 3 1 1 1 FWLCD Fire, Center DivNacant Lot 1 3 1* FAA _Aircraft Fire 1 3 1 1 FWLL Wildland Fire, Low ni.o"t"h 1 3 1 1 FWLM Wildland Fire, Medium ~ 1 3 I 1 1 i FWLH Wildland Fire, High ~ 1 3 I 1 2 MED Code 3 Medical Aili 1 1* MEDC2 Code 2 Medical Aid 1 MRECLF Cliff Rescue 1 1 1 1 Page 10 of 13 January 30 1 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 29 Packet Pg. 202 Item 6 MTC 1 Traffic Collision MTX 1 12 Traffic Collision wlExtrication MTCV 1 2 1 Traffic Collision wi Mllltinle Vehicles MTCM 1 13 Traffic Collision wI Multiple Casualty MEDM 11 3 Mass Casualty Incident MRESWF 1 2 Swift Water Rescue MRECS 11 1 Confined Space Rescue MRETCH 1 11 T~hRescue I 1MREUSR 11 Urban Search & Rescue HZM 1 3 1 HazMat Incident MEDCT4 1 3 1 Single Engine Aircraft, off- site MEDCT5 1 3 1 Multi Engine Aircraft, off-site Note - * equals one umt from Station 21 ­ COMMUNICATIONS/DISPATCH Dispatch to Incidents Reports of emergencies shall be directed to the agency having jurisdiction's dispatch center. If the incident jurisdiction can not be immediately determined, the receiving dispatch center shall respond the appropriate initial attack response and request an appropriate response from the other agency dispatch center. Automatic response shall be initiated by each agency dispatch center when appropriate. Requests for resources will be dispatched via normal dispatch channels. The Incident Commander shall make every effort to utilize common radio nets and a single unified ordering point. Command and Tactical nets will be identified for all incidents by the agency having jurisdiction's dispatch center. The Incident Commander may request a specific frequency with approval. 1* 1 1 I 1 1 1 1 1 1 1 1 Crash 21 or ARFF 1 Crash 21 or ARFF Airport only and no Paid Call Firefighters Page 11 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 30 Packet Pg. 203 Item 6 RADIO CHANNEL PRIMARY COMMAND SECONDARY COMMAND PRIMARY TACTICAL SECONDARY TACTICAL CAL FIRE­ SLO County SLU Local Tone 11 CAL FIRE Command 1 Please see below for information regarding CAL FIRE/SLO County Tactical Frequencies 151.3250 Rx 159.3150 Tx Tone 11: 114.8 151.3550 Rx 159.300 Tx Tone 1: 110.9 SLO City Fire Dept. SLO City Net SLO City Common Net SLO City Tac 1 SLO City Tac 2 155.1450 Rx 154.2050 Tx Tone 7: 167.9 155.9550 Rx 159.0750 Tone 15: 162.2 154.3100 Rx and Tx Tone: 82.5 155.0250 RX and Tx Tone: 127.3 RADIO CHANNEL PRIMARY WILDLAND TAC SECONDARY WILDLAND TAC NON WILDLAND FIRE TACs PRIMARY MEDICAL AID TAC CAL FIRE­ SLO County CAL FIRE TAC2 CAL FIRE TAC7 CAL EMA WHITE TACs CAL CORD 151.1600 Rx and Tx ! 151.2950 Rx and Tx WHITE 2 154.2650 Rx and Tx WHITE 3 154.2950 156.0750 Rx and Tx Page 12 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 31 Packet Pg. 204 Item 6 RESOURCE AVAILABILITY Agencies are not obligated to send resources to an incident if it depletes resources below an acceptable level as determined by their duty chief. If resources are unable to respond, immediate notification shall be made directly to appropriate Dispatch Center. JOINT TRAINING All parties to this Agreement shall schedule and participate in joint training exercises at mutually agreed upon times and locations in order to insure that optimum performance levels are maintained. TERMS OF AGREEMENT Agencies agree to implement this Operational Plan and Agreement as of the date of the last signature and is effective until either party requests an update, revision or cancelation. Both parties agree to meet periodically to review the plan. AUTHORIZED AGREEMENT SIGNATURES By signature below each Agency certifies that the individual listed is authorized to execute this agreement. -..~c..-;:.-.-_,-I..~:.-.-___.___ Date: 2--Z. t -I Z- Robert Lewin, Chief CAL FIRE/San Luis Obispo County Fire Department _~""""'-~==.:::.< p..t.""'""'~__..e=::..__"--",,,¥:il..,<.o:..,' Date: Z-21-IZ­( Charles Hines, ~hief San Luis Obispo Fire Department Page 13 of 13 January 30, 2012 Version ATTACHMENT E OPERATIONAL PLAN AND AGREEMENT FOR AUTOMATIC AID 32 Packet Pg. 205 Item 6 STATE OF CALIFORNIA OFFICE OF THE DIRECTOR - RESEARCH UNIT DEPARTMENT OF INDUSTRIAL RELATIONS P.O. Box 420603, San Francisco, California 94142 http://www.dir.ca.gov/OPRL CONSUMER PRICE INDEX - CALIFORNIA Los Angeles-Riverside-Orange Co., San Francisco-Oakland-San Jose, San Diego United States City Average, 2016-2017 All Items 1982 - 1984 = 100 Year & Month All Urban Consumers Urban Wage Earners and Clerical Workers Californiaa Los Angelesb San Franciscob San Diegob U.S. Cityb Californiaa Los Angelesb San Franciscob San Diegob U.S. Cityb Riverside Oakland Average Riverside Oakland Average Orange Co. San Jose Orange Co. San Jose 2016 January - 247.155 b 236.916 - 238.609 b 231.061 February 252.649 247.113 262.600 237.111 243.748 238.262 257.141 230.972 March - 247.873 b 238.132 - 239.146 b 232.209 April 254.134 248.368 264.565 239.261 245.321 239.536 259.386 233.438 May R/249.554 b R/240.229 R/240.320 b R/234.436 June R/255.576 R/249.789 266.041 272.628 R/241.018 R/246.505 R/240.522 261.017 256.287 R/235.289 July R/249.784 b R/240.628 R/240.580 b R/234.771 August R/256.097 R/249.700 R/267.853 R/240.849 R/246.735 R/240.267 R/262.326 R/234.904 September - 250.145 b 241.428 - 240.851 b 235.495 October 257.836 251.098 270.306 241.729 248.408 241.932 264.026 235.732 November - 250.185 b 241.353 - 240.809 b 235.215 December 256.953 250.189 269.483 276.837 241.432 247.411 240.846 263.222 259.893 235.390 Annual Average 255.303 249.246 266.344 274.732 240.007 246.184 240.140 260.830 258.090 234.076 2017 January - 252.373 b 242.839 - 242.735 b 236.854 February 260.111 253.815 271.626 243.603 250.485 244.254 265.569 237.477 March - 254.525 b 243.801 - 244.932 b 237.656 April 261.850 254.971 274.589 244.524 252.316 245.417 268.896 238.432 May - 255.674 b 244.733 - 246.153 b 238.609 June 262.286 255.275 275.304 281.561 244.955 252.839 245.900 269.508 264.456 238.813 July - 256.023 b 244.786 - 246.681 b 238.617 August 263.473 256.739 275.893 245.519 253.874 247.260 269.827 239.448 September - 257.890 b 246.819 - 248.550 b 240.939 October 265.472 258.883 277.570 246.663 255.682 249.234 271.272 240.573 November - 259.135 b 246.669 - 249.680 b 240.666 December 265.652 259.220 277.414 284.464 246.524 256.131 249.854 271.342 267.226 240.526 Annual Average 262.802 256.210 274.924 283.012 245.120 253.244 246.721 268.990 265.841 239.051 1/22/2018 a Weighted average of the consumer price indexes for Los Angeles-Anaheim-Riverside and San Francisco-Oakland-San Jose. A conversion factor has been included for comparability of 1987 data with 1986 and prior years. Computed by the Department of Industrial Relations, Office of the Director - Research Unit from indexes issued by the U.S. Department of Labor. b Source: U.S. Department of Labor, Bureau of Labor Statistics. Beginning with January 1998 data, indices for San Francisco-Oakland-San Jose will be published bi-monthly on even months only (February, April, June, etc.). Beginning with the January 2007 data, indices published by the Bureau of Labor Statistics will be rounded to three decimal places (see http://www.bls.gov/cpi/cpithreedec.htm). The California indices conform to this change. R/ - Revised, See Explanation by the Bureau of Labor Statistics at http://www.bls.gov/bls/errata/cpi-price-corrections-10182016.htm ATTACHMENT F Consumer Price Index Packet Pg. 206 Item 6 Meeting Date: 9/18/2018 FROM: Michael Codron, Community Development Director Prepared By: Diane Dostalek, Senior Civil Engineer SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3083 WEST CREEK, 1299 ORCUTT ROAD (SBDV-1769-2015) RECOMMENDATION Adopt a resolution approving the Final Map for Tract 3083 West Creek, 1299 Orcutt Road, and authorize the Mayor to execute a Subdivision Agreement. DISCUSSION Background Tract 3083 West Creek (SBDV-1769-2015) is located at 1299 Orcutt Road (Attachment A, Vicinity Map). A vesting tentative map for Tract 3083 was originally approved by the City Council on May 17, 2016, by Resolution No. 10715 (2016 Series) (Attachment F, Reading File). The tentative map (Attachment G, Reading File) contained a total of 77 lots consisting of 67 single-family lots, one multi-family lot for up to 105 residential condominiums, and 9 park and open space lots. The lot numbering and configuration of the park and open space lots have changed slightly from the tentative map to the final map to better define the lot boundaries in relation to their uses (drainage basin, park, creek, creek trail), but the general design and quantity of lots and buildable lots has not changed. Affordable Housing Pursuant to an Affordable Housing agreement required by Condition #106 of Reso lution No. 10715 (2016 Series), ten of the condominium units will be designated as low- or moderate- income affordable units. Park Improvement Fee Credits Although the park and recreation amenities within Tract 3083 will be privately-owned and maintained, the Subdivider proposes to allow public use of the park and trails in exchange for the City grant ing park improvement fee credits. Condition #109 of Resolution No. 10715 (2016 Series) states that the subdivider is eligible for a park improvement fee credit in an amount up to one-half of the park improvement fee. The current Orcutt Area Specific Plan (OASP) Park Improvement fee is $6,717 for single-family units and $4,997 for multi-family units, which would generate approximately $975,000 in fees for park improvements. On April 5, 2017, the Parks and Recreation Commission (PRC) reviewed a park proposal and construction estimate from the Subdivider. The proposed park improvements included ADA accessible walkways, benches, trash receptacles, artificial turf play areas, walls with seating, a kids’ climbing wall, safety play surface, boulder scramble, pedestrian and bicycle trails , and Packet Pg. 207 Item 7 landscaping and irrigation improvements at four locations – creek trail, creek park, and two linear parks (Attachment B). The PRC supported the Subdivider retaining maintenance responsibilities for all these improvements. The PRC discussed the amenities being proposed, including if they rose to the level of improvements that would be used by the public or just the residents of this new development. The improvements’ costs at that time were estimated at $980,000. If the Subdivider received the full 50% credit , only about $440,000 of park improvement fees from Tract 3083 would remain for development of other park facilities in the OASP, particularly the central neighborhood park. The land for that central neighborhood park was dedicated in fee to the City with Righetti Tract 3063 . Amenities proposed for the central neighborhood park are on a scale similar to other nearby neighborhood parks such as Islay Park and French Park. The PRC discussed the Subdivider providing some park amenities within its subdivision but expressed concern that the proposed fee credits would impact funding to develop the central neighborhood park. Further, the PRC did not believe that all the amenities proposed would be used by the public, in particular the drainage areas and internal trails. Therefore, the PRC recommended to Council that only up to 50% of the fee be potentially applied to the cost of improvements within the creek park and one linear park (the one that connects to the creek trail). The PRC specifically recommended that the final design for the amenities eligible for credit return to the PRC for final review and approval (as a lot can change in the design process). The improvements planned for the creek park include landscaping, irrigation, benches, synthetic turf play slope, boulder scramble, and a slide. The improvements planned for the internal linear park include landscape, irrigation, walkways, benches, table tennis, synthetic turf play slope with a slide, boulder scramble, and a small synthetic turf area for free play. These revised improvements are estimated at $287,000, with 50% of that cost equivalent to $143,500. The resolution appro ving the final map (Attachment E) also approves the PRC recommendation of limiting the improvements available for fee credit to the creek park and the one linear park and authorizes the PRC and City staff to determine the extent that these amenities compare to typical City park amenities which would be eligible for fee credit. Prior to construction, the subdivider will need to present a final park design to PRC for review and approval. Storm Drain Infrastructure Due to the single-family housing product being located on small lots, the ability to achieve positive drainage from the back yards and roof drains to the street via surface drainage swales was compromised. Therefore, rather than having each lot drain to the City street through an underwalk drain, the subdivider proposed to tie each lot into an underground storm drain line located in the public street. Because of the numerous private connections to the storm drain line, the subdivider agreed to have the Homeowner’s Association (HOA) take on maintenanc e of these lines and the main within the public street. Maintenance of these lines and other storm drain lines and stormwater treatment facilities by the HOA is addressed in the CC&R’s and the specific lines to be maintained by the HOA are shown on Sheet 3 8 (Composite Utility Plan) of the approved Public Improvement Plans for Tract 3083. Packet Pg. 208 Item 7 Parking Condition #41 said that the proposed perpendicular parking along Street A-2 (Cerro Cabrillo Lane) is to be maintained by the Homeowner’s Association (HOA). It was determined that the subdivision’s parking needs could be satisfied with typical on-street parallel parking in lieu of the perpendicular parking and the street was redesigned accordingly. The parallel parking is located within the street right -of-way and will be maintained by the City as part of their typical road maintenance duties. Approving the Final Map The tentative map has an initial two -year life per Municipal Code Section 16.10.150. The developer requested and was granted a one-year time extension. Therefore, this vesting tentative map has an expiration date of May 17, 2019. The final map must be completed prior to expiration of the tentative map. Additional time extensions are allowed. The final map for Tract 3083 (Attachment C) is ready to be approved. There are a few minor revisions still required for technical accuracy, but those changes will be completed before the map records. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map and approved modifications thereof. Section 66474.1 of the Subdivision Map Act states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” The approval of a final map is considered a ministerial action. Appropriate securities will be submitted prio r to map recordation to guarantee completion of the required subdivision improvements as shown in the Subdivision Agreement (Attachment D). The resolution approving the final map (Attachment E) also authorizes the Mayor to sign the Subdivision Agreement requiring the Subdivider to complete the subdivision improvements. CONCURRENCES The Director of Public Works and the Director of Parks and Recreation concur with the recommended action. ENVIRONMENTAL REVIEW The Orcutt Area Specific Plan and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. The West Creek Tract 3083 Tentative Tract Map (VTM) was analyzed in a project -specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FE IR. The VTM was approved and the IS/MND was adopted on May 17, 2016. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project. Packet Pg. 209 Item 7 Approval of the final map is statutorily exempt under the California Envir onmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. FISCAL IMPACT There is no significant financial impact to the City associated with approving the final map for Tract 3083. However, the public improvements that will be constructed with this phase will result in an increase in maintenance costs for the public streets, public water and sewer, and other infrastructure upon acceptance of the improvements by the City. These costs will be shown in future Financial Plans as the facilities are accepted and begin to require standard maintenance. Storm drain lines are a mix of publicly- and privately-maintained as shown on the Public Improvement Plans for Tract 3083. The creek trail, as well as the creek park on Lot 73 and the linear park on Lot 69, will be open to the public but will be privately-maintained by the HOA. Any park improvement fee credits given to Tract 3083 would reduce the amount of park improvement fees that are intended to fund the OASP central neighborhood park. Any shortfalls to that funding would have to be made up by General Fund contributions or the improvements scaled back to match available funding. ALTERNATIVE Deny approval of the final map. Denying approval of the final map can apply if findings are made that the requirements or conditions of the tentative map have not been met or performed (Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in substantial compliance with the previously approved tentative map (Section 66474.1 of the Subdivision Map Act). Because the final map is in substantial compliance with the tentative map and all of the conditions of the map will be met or securities deposited prior to map recordation, Sections 66474.1 and 66473 of the Subdivision Map Act require that City Council approve the map. Therefore, denying approval of the final map is not a recommended alternative unless the required findings are made. Attachments: a - Vicinity Map b - Proposed Park Improvements c - Final Map d - Subdivision Agreement e - Draft Resolution Approving Final Map f - Resolution No. 10715 (2016 Series) g - Tentative Map Packet Pg. 210 Item 7 Packet Pg. 211 Item 7 West Creek VTM#3083 Park Proposals (1299 Orcutt Road) Orcutt Area Specific Plan Page 3 Looking at the details of each park area, the applicant proposes the following features: Linear Parks 1 (closest to “A” Street) and 2 (connected directly to the Creek Trail) 1. ADA accessible walkway 2. Bench Terrace with rockery wall 3. Artificial Turf play slopes (open areas and bean bag toss and/or putting greens) 4. Seating Terrace with rockery wall 5. Active Terrace with Ping Pong Table and rockery wall Creek Park 1. Connection to the Creek Trail 2. Artificial Turf Play Mounds, incorporating a.Crawl tube b. Slide c. Bridge 3. Climbing Wall 4. Safety Play Surface 5. Boulder Scramble 6. Internal paths and benches 7.“Meadow” landscape treatments with unmown grasses and drought-tolerant groundcover Creek Trail 1.Decomposed Granite Trail running between Orcutt Road and “A” Street 2. Kiosk near the Orcutt Road trail intersection 3. Benches along the trail WEST CREEK Tract 3083 1299 Orcutt Road Park Proposals 2-3Packet Pg. 212 Item 7 SITE (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 213 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 214 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 215 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 216 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 217 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 218 Item 7 (N O T E : P L O T S T A M P T O B E R E M O V E D W H E N P L O T T E D O N M Y L A R ) Packet Pg. 219 Item 7 1 SUBDIVISION AGREEMENT THIS AGREEMENT is dated this ______ day of ___________201___ by and between West Creek LLC, a California limited liability company, and West Creek SFR LLC, a Delaware limited liability company, herein collectively referred to as "Subdivider," and the CITY OF SAN LUIS OBISPO, herein referred to as the "City." RECITALS REFERENCE IS HEREBY MADE to that certain proposed subdivision of real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, a description of which is shown on the Final Map of Tract 3083 City of San Luis Obispo, California, as approved by the City Council on the ____ day of ___________, 201___. The Subdivider desires that said Tract 3083 be accepted and approved as a Final Map pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the San Luis Obispo Municipal Code), and It is a condition of said regulations that the Subdivider agree to install the improvements as set forth on the plans therefore. TERMS AND CONDITIONS: In consideration of the foregoing, the Subdivider does hereby agree to construct and install the following subdivision improvements in accordance with said subdivision regulations, and in accordance with approved plans and specifications on file in the office of the City Engineer, City of San Luis Obispo, to wit: 1. CURB, GUTTERS AND SIDEWALKS 2. STREET BASE AND SURFACING Packet Pg. 220 Item 7 2 3. WATER MAINS and SEWER MAINS, including sewer laterals to the property line and water services to the curb stop. 4. LANDSCAPING 5. DRAINAGE STRUCTURES 6. STREET LIGHTS 7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the inspection and approval of such facilities by the City, each public utility shall be required to file a letter stating that the developer has properly installed all facilities to be provided by him, and that the said utility is prepared to provide service to residents upon request. 8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project approvals. All of the above facilities shall be installed in the locations designated and to the plans and specifications on file and approved by said City Engineer. The lines and grades for all of said improvements shall be established by the Subdivider in accordance with said approved plans and specifications. The Subdivider agrees that the work of installing the above improvements shall begin within thirty (30) days from the date of recording of the final map, and that the work shall be completed within twelve (12) months of said recording date, unless an extension has been granted by the City, provided that if completion of said work is delayed by acts of God or labor disputes resulting in strike action, the Subdivider shall have an additional period of time equivalent to such period of delay in which to complete such work. Any extension of time hereunder shall not operate to release the surety on the Improvement Security filed pursuant to this agreement. In this connection, the surety waives the provisions of Section 2819 of the Civil Code of the State of California. Packet Pg. 221 Item 7 3 No building permits will be issued nor occupancy granted after the expiration date of the agreement until completion and acceptance of all subdivision improvements unless specifically approved by the City. The Subdivider does also agree to comply with the conditions established by the City Council and has paid the necessary fees and submitted the required securities as indicated on the attached Exhibits 1 and 2. Setting of new survey monuments or resetting of disturbed monuments shall be in accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors Act, Chapter 15 of the Business and Professions Code of the State of California. The Subdivider attaches hereto, as an integral part hereof, and as security for the performance of this agreement, an instrument of credit or bond approved by and in favor of the City of San Luis Obispo, and conditional upon the faithful performance of this agreement. Said instrument of credit or bond is in the amount of $7,279,500 which is the amount of the estimated cost of said improvements that remain to be completed from the original $13,541,700 of required improvements. Per Sec. 66499.7(d) of the Government Code of the State of California, a reduction in the performance security, is not, and shall not be deemed to be, an acceptance by the City of the completed improvements, and the risk of loss or damage to the improvements and the obligation to maintain the improvements shall remain the sole responsibility of the subdivider until all required public improvements have been accepted by the local agency and all other required improvements have been fully completed in accordance with the plans and specifications for the improvements. Packet Pg. 222 Item 7 4 Subdivider agrees to remedy any defects in the improvements arising from faulty workmanship or materials or defective construction of said improvements occurring within twelve (12) months after final completion and acceptance thereof. In accordance with Sections 66499.7 and 66499.9 of the Government Code of the State of California, upon final completion and acceptance of the work, City will retain a security in the amount of $1,354,170 which is 10% of the total estimated cost of subdivision improvements. That amount being deemed sufficient to guarantee faithful performance by the Subdivider of his obligation to remedy any defects in the improvements arising within a period of one year following the completion and acceptance thereof. Completion of the work shall be deemed to have occurred on the date which the City Council shall, by resolution duly passed and adopted, accept said improvements according to said plans and specifications, and any approved modifications thereto. Neither periodic nor progress inspections or approvals shall bind the City to accept said improvements or waive any defects in the same or any breach of this agreement. “AS-BUILT” record drawings are to be submitted within four weeks of completion of construction and prior to City acceptance of the public improvements. If the Subdivider fails to complete the work within the prescribed time, the Subdivider agrees that City may, at its option, declare the instrument of credit or bond which has been posted by Subdivider to guarantee faithful performance, forfeited and utilize the proceeds to complete said improvements, or city may complete said improvements and recover the full cost and expense thereof from the Subdivider or his surety. Packet Pg. 223 Item 7 5 The Subdivider has deposited with the City a labor and materials surety in the amount of 50% of the above described subdivision improvements ($6,770,850) in accordance with State law. Said Subdivider shall pay an inspection fee for City to inspect the installation of said subdivision improvements, and to verify that they have been completed in accordance with the plans and specifications. If off-site dedication of property is necessary to facilitate the construction of the required subdivision improvements, the Subdivider shall exhaust all avenues available to acquire said off-site dedication and shall provide proof that a reasonable written offer to purchase the property at fair market value was made, in accordance with an appraisal conducted by an MAI appraiser. In the event the Subdivider is unable to acquire said property, the City Council may consider lending the Subdivider its powers of condemnation to acquire the off-site dedication, including any necessary construction, slope, and drainage easements. The Subdivider shall pay all costs associated with such acquisition or condemnation proceedings including but not limited to all attorney’s fees, court costs, expert witness fees, and jury awards of any kinds. Prior to proceeding with the condemnation process, the Subdivider shall deposit with the City all or a portion of the anticipated costs of the condemnation proceedings, as determined by the City Attorney. The City does not and cannot guarantee that the necessary property rights can be acquired or will, in fact, be acquired. All necessary procedures of law would apply and would have to be followed. Without limiting the foregoing, the Subdivider shall indemnify, defend and hold City harmless from and against any and all such claims, liabilities, and Packet Pg. 224 Item 7 6 causes of action of any kind, associated with City’s acquisition or condemnation of such real property interests. Title 16 of the San Luis Obispo Municipal Code, entitled "Subdivision," all plans and specifications on file with said City Engineer as a part of said Subdivision Map, and all other documents filed with the City by the Subdivider and approved by the City Engineer are hereby referred to for further particulars in interpreting and defining the obligations of the Subdivider under this agreement. Pursuant to Government Code Section 66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the subdivider of any Indemnified Clai m upon being presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim. It is understood and agreed by and between the Subdivider and the City hereto that this agreement shall bind the heirs, executors, administrators, successors and assigns of the respective Parties to this agreement. It is agreed that the Subdivider will furnish copies of the successful bidder's contract unit prices and total bid prices for all of the improvements herein referred to, if requested by the City. Packet Pg. 225 Item 7 7 IN WITNESS WHEREOF, this agreement has been executed by: SUBDIVIDER West Creek, LLC, a California Limited Liability Company By: SLO Management, LLC, a California Limited Liability Company Its: Manager By: West Creek Management, LLC, a California Limited Liability Company Its: Manager By:_____________________________________________________ Richard. G. Nelson, Manager West Creek SFR, LLC, a Delaware limited liability company By: Robbins Reed, Incorporated a California corporation Its: Managing Member By:_____________________________________________________ Aaryn Abbott, Vice President CITY OF SAN LUIS OBISPO MAYOR Heidi Harmon ATTEST: CITY CLERK Teresa Purrington APPROVED AS TO FORM: CITY ATTORNEY Christine Dietrick Packet Pg. 226 Item 7 8 EXHIBIT 1 TRACT 3083 SUBDIVISION AGREEMENT 1. The Subdivider has deposited a monumentation security in the amount of $50,450 to guarantee the installation of survey monuments in accordance with the approved map and payment for same. Said guarantee will be released once the installation of monuments has been verified and that existing monuments have not been disturbed, and upon receipt by the City of a letter from the Surveyor indicating that they have completed the work and have been paid. Subdivider shall adhere to the requirements of California Business and Professions Code Section 8771 with regards to monument preservation. The monumenation security also guarantees the replacement of any monuments that were disturbed during construction, along with filing of Records of Survey or Corner Records required by said Section 8771. 2. Park-in-lieu fees shall be paid at time of issuance of building permit per the fee schedule listed in the most current Orcutt Area Specific Plan (OASP) Public Facilities Financing Plan (PFFP). Credit may be available to the subdivider per Condition #109 of Council Resolution No. 10715 (2016 Series). 3. Water and sewer impact fees shall be paid at time of building permits per the fee schedule in effect at the time the Vesting Tentative Tract Map was approved (adjusted for CPI increases), unless the vesting rights have expired as set forth in Government Code Section 66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect at time of building permits. 4. Citywide Transportation Impact Fees shall be paid at time of building permits per the fee schedule in effect at the time the Vesting Tentative Map was approved (adjusted for CPI increases), unless the vesting rights have expired as set forth in Government Code Section 66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect at time of building permits. 5. Orcutt Area Transportation Impact Add-On Fee shall be paid at time of building permit per the fee schedule listed in the most current OASP PFFP in effect at time of building permits. 6. The Subdivider has elected to pay a roadway maintenance fee to satisfy Condition #37. The fee of $_______ was approved by the City Engineer in accordance with City Engineering Standards and guidelines and satisfies the requirements of Condition #37. 7. The Subdivider has submitted a bond in the amount of $225,436 guaranteeing payment to Righetti Ranch LP for their fair share of costs of constructing off-site water main and recycled water main extensions as shown in a reimbursement agreement with Righetti Ranch LP approved by Council Resolution No. 10812 (2017 Series) on 6/20/2017. These improvements are a requirement of Tract 3083 to satisfy Mitigation Measures USS-VTM3083-1 and USS- VTM3083-2. Once Righetti Ranch LP constructs the improvements and they are accepted by the City, Tract 3083 shall pay their fair share as determined by the reimbursement agreement. The $225,436 bond will be released once payment to Righetti Ranch LP is made, otherwise the City Packet Pg. 227 Item 7 9 reserves the right to use the bond to make said payment. If Righetti Ranch LP fails to construct the improvements, then Tract 3083 shall bond for and construct the improvements prior to occupancy, if needed to satisfy the mitigation measures. If Tract 3083 constructs the improvements, payment to Righetti Ranch LP will not be required and the $225,436 bond can be released. 8. The Subdivider has submitted a bond in the amount of $287,000 guaranteeing completion of park improvements that are eligible for park improvement fee credits per Condition #109 of Council Resolution No. 10715 (2016 Series). Subdivider is eligible for park improvement fee credits up to one-half the construction costs of approved improvements. The park improvement bond can be released once the park improvements are constructed and the improvements are deemed complete by the City Council. 9. Pursuant to Condition #21 of Council Resolution No. 10715 (2016 Series), the Subdivider has deposited a faithful performance security in the amount of $100,000 to retain a qualified traffic consultant to conduct neighborhood speed surveys one year after final occupancy at locations approved by the Director of Public Works. If the 85th percentile speeds exceed current City Neighborhood Traffic Management (NTM) thresholds, additional traffic calming measures shall be installed. The $100,000 security will be retained by the City to guarantee that Subdivider installs additional City-approved traffic calming measures to reduce the speeds to comply with City NTM thresholds. The additional measures shall be installed within six (6) months following notice from the City to install said measures. Additional speed surveys shall be conducted twelve (12) months after completion of construction of the additional traffic calming measures. The $100,000 security will be released to the Subdivider once City-approved speed surveys demonstrate that traffic speeds comply with City NTM thresholds. 10. The subdivider shall comply with all requirements of Council Resolution No. 10715 (2016 Series) approving the tentative map. Packet Pg. 228 Item 7 10 EXHIBIT 2 TRACT 3083 - FEE AND BOND LIST 1299 ORCUTT Amount Form Date Received Bond Release Status Bonds and Guarantees: Faithful Performance for Subdivision Improvements $7,279,500 xxx xxx Can be released upon City acceptance of improvements, deposit of one-year warranty surety, and approval of record drawings. Labor & Materials (50% of total cost of improvements) $6,770,850 xxx xxx Can be released 90 days after acceptance of improvements, if no claims. (Civil Code Section 8412) Monument Guarantee $50,450 CD or Letter of Credit xxx Can be released upon verification that monuments have been set and surveyor has been paid. 10% Warranty $1,354,170 To be collected prior to release of Faithful Performance Bond Can be released one-year after acceptance of improvements, if no defects, and approval of record drawings. Righetti Reimbursement Agreement $225,436 xxx xxx Park Improvement $287,000 xxx xxx Traffic Calming and Speed Surveys $100,000 xxx xxx Off-Site Water and Recycled Water Mains Bond submitted by Righetti Phase 1 Tract 3063. See Exhibit 1 for additional information. Fees: Map Check Fee $41,766.23 Check 10/17/17 Early Grading Plan Check Fee Plan Check Fee Deposit Plan Check Fee Remainder Total $27,567.71 +$2,215.00 +$45,787.33 $75,570.04 Check Check 2/21/17 5/3/18 Early Grading Inspection Fee Construction Inspection Fee Total $65,293.56 +$134,332.82 $199,626.38 Check 5/3/18 Roadway Maintenance Fee $xxx xxx xxx To be deposited in Acct # 40050300- 90346953 Streets Reconstruction and Resurfacing Master per Matt Horn Park In-Lieu Fee1 To be collected with building permit. Credit may be available for park improvements per Condition #109. Affordable Housing Requirements See Affordable Housing Agreement Water Impact Fee1 To be collected with building permit Wastewater Impact Fee1 To be collected with building permit Transportation Impact Fee1 To be collected with building permit 1 All Impact Fees are adjusted annually (July 1) based on CPI. Credit given for demolished units. Packet Pg. 229 Item 7 R _____ RESOLUTION NO. (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3083 WEST CREEK (1299 ORCUTT ROAD, SBDV-1769-2015) WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3083, as prescribed in Resolution No. 10715 (2016 Series); and WHEREAS, the subdivider has requested that the Council approve the final map for Tract 3083; and WHEREAS, the subdivider will submit appropriate securities to guarantee installation of the required subdivision improvements as shown on the approved plans prior to map recordation, and the required fees will be received prior to map recordation, as prescribed in the Subdivision Agreement; and WHEREAS, all requirements, conditions and mitigation measures required per said Resolution No. 10715 (2016 Series) have been completed or appropriate securities will be in place to guarantee their completion prior to map recordation; and WHEREAS, on April 5, 2017, the Parks and Recreation Commission (PRC) reviewed a proposal and construction estimate for improvements within the linear and creek trail parks for Tract 3083 and recommended approval of a credit up to 50% of the park improvement fee for the cost of the improvements that would be accessible and used by the public and were associated with the creek park and one linear park (the one that connects to the creek trail); and WHEREAS, the Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. The West Creek Tract 3083 Tentative Tract Map (VTM) was analyzed in a project-specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FEIR. The VTM was approved and the IS/MND was adopted on May 17, 2016; and WHEREAS, approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Minist erial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The final map for Tract 3083 is found to be in substantial conformance with the tentative map. SECTION 2. The Subdivision Agreement for Tract 3083 is approved, and the Mayor is authorized to approve minor revisions to the agreement and execute the document. Packet Pg. 230 Item 7 Resolution No. (2018 Series) Page 2 SECTION 3. Approval of the final map for Tract 3083 is hereby granted, and the Public Works Director is authorized to approve minor changes to the final map for technical accuracy. SECTION 4. A park improvement fee credit for Tract 3083 is authorized for improvements within the creek park and one linear park (the one that connects to the creek trail). The PRC, Parks and Recreation Director, and Public Works Director are authorized to determine the fee credit in an amount not to exceed 50% of the total park improvement fee for Tract 3083, with consideration being given to whether the amenities are consistent with typical City park amenities and whether sufficient funding will remain for improvements to the OASP central neighborhood park. The subdivider shall present a final design to the Parks & Recreation Commission prior to construction for review and approval. SECTION 5. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution. Packet Pg. 231 Item 7 Resolution No. (2018 Series) Page 2 SECTION 6. Environmental Review. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project. Approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. Upon motion of _______________________, seconded by ________________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______ day of _______________ 2018. ________________________________ Mayor Heidi Harmon ATTEST: ______________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 232 Item 7 RESOLUTION NO. 10715 (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING VESTING TENTATIVE TRACT MAP NO. 3083 CREATING 77 LOTS FOR PROPERTY LOCATED AT 1299 ORCUTT ROAD (SBDV-1769-2015, TRACT #3083 a.k.a. "WEST CREEK") WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on April 13, 2016, and recommended approval of the project; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted public meetings on December 1, 2014 and October 18, 2015, and recommended approval of the project; and WHEREAS, the Parks and Recreation Commission of the City of San Luis Obispo conducted public meetings on March 4, 2015 and November 4, 2015, and recommended approval of the project; and WHEREAS, notices of said public hearing and advisory meetings were made at the time and in the manner required by law; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on May 3, 2016; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE BE IT RESOLVED, by the Council of the City of San Luis Obispo that Vesting Tentative Tract Map #3083 (SBDV-1769-2015) is hereby approved based on the certified 2010 OASP EIR and 2016 West Creek project -specific Initial Study -Mitigated Negative Declaration, the findings below and subject to the following conditions: SECTION 1. Environmental Review. The City Council hereby determines that the potential environmental effects of the VTM#3483 subdivision project were adequately examined by the initial Study -Mitigated Negative Declaration that was adopted on May 17, 2016 and that all potentially significant environmental effects were identified but mitigation measures to be included and incorporated into the project avoid or reduce the effects to a point where clearly no significant effect on the environmental would occur. SECTION 2.'Vesting Tract Mgppproval with Findings & Conditions. The City Council does hereby approve application SBDV-1769-2015 (VTM#3083, "West Creek"), a tentative tract map to create up to 77 lots comprising 6 7 single family residential lots, 1 multi -family condominium lot for 105 residential units, and 8 parks and open space lots, and 1 lot for future street extension based on the following Findings, and subject to the following conditions being incorporated into the project: R 10715 Packet Pg. 233 Item 7 Resolution No. 10715 (2016 Series) Page 2 Findin s: 1. As conditioned, the design of the Vesting Tentative Tract Map is consistent with the General Plan because the proposed subdivision respects existing site constraints, will incrementally add to the City's residential housing inventory, results in parcels that meet minimum density standards, and will be consistent with the density, lot sizes and project amenities established by the Orcutt Area Specific Plan (OASP). 2. The site is physically suited for the type and density of development allowed in the R -2 -SP and R -4 -SP zoning districts. 3. The design of the vesting tentative tract map and the proposed improvements are not likely to cause serious health problems, substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat, since further development or redevelopment of the proposed parcels will occur consistent with VTM #3083 and the required architectural review process, which will allow for detailed review of development plans to assure compliance with City plans, policies, and standards. 4. As conditioned, the design of the subdivision will not conflict with easements for access through (or use of property within) the proposed subdivision, and the project is consistent with the pattern of development prescribed in the Orcutt Area Specific Plan. 5. The proposed project will provide affordable housing consistent with the intent of California Government Code §65915, and in compliance with City policies and the Housing Element. 6. The tentative map, as conditioned, will comply with all environmental mitigation measures prescribed herein, and therefore is consistent with the California Environmental Quality Act, the GASP Final EIR, and the Initial Study -Mitigated Negative Declaration (IS - MND). 7. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities. R 10715 Packet Pg. 234 Item 7 Resolution No. 10715 (2016 Series) Conditions: Page 3 Dedications and basements 1. Any easements including but not limited to provisions for all public and private utilities, access, grading, drainage, open space, slope banks, construction, public and private streets, pedestrian and bicycle facilities, common driveways, and maintenance of the same shall be shown on the final map and/or shall be recorded separately prior to or concurrent with the first phase of the map, unless a deferral is requested by the subdivider and granted by the City. Said easements may be provided for in part or in total as blanket easements. 2. The final map and improvement plans shall show the extent of all on-site and off-site offers of dedication. Subdivision improvement plans and or preliminary designs may be required for any deferred improvements so that dedication limits can be established. These improvements may include but are not limited to road construction and widening, grading and drainage improvements, utility easements, bridges, bike bridges, transit stops, bikeways, pedestrian paths, signalized intersections, traffic circles, and roundabouts. 3. The subdivider shall dedicate a 10' wide street tree easement and 6' public utility easement P.U.E.) across the frontage of each lot. Said easements shall be adjacent to and contiguous with all public right-of-way lines bordering each lot. A 10' wide street tree easement and 6' P.U.E. shall be provided along the frontage for all private streets. A 10' street tree easement and 15' P.U.E. shall be provided along the Orcutt Road frontage (tract boundary). 4. The subdivider shall include a separate offer of dedication for any sections of the Orcutt Area Specific Plan (OASP) Streets A, B, and/or C located outside the tract boundary if needed for circulation, access, and/or utility extensions. The developer shall include the offers of dedication for the Orcutt Road widening improvements in conjunction with or prior to the map recordation. The developer shall include any other out -of -tract offers of dedication related to the need for public utility extensions related to orderly development of the OASP where not otherwise located within a public street. 5. All private improvements shall be owned and maintained by the individual property owners or the Homeowner's Association (HOA) as applicable. Private improvements include but are not limited to streets, sidewalks, private pedestrian/bike paths, sewer mains, water services, drainage systems, detention basin(s), street lighting, landscape, landscape irrigation, common areas, pocket parks, and linear park improvements. 6. A notice of requirements or other agreement acceptable to the City of San Luis Obispo may need to be recorded in conjunction with the Final Map to clarify development restrictions, fee payments, conditions of development, and references to any pertinent conditions of approval related to this map, off-site requirements, and/or the interaction of this development to the remainder of the OASP. R 10715 Packet Pg. 235 Item 7 Resolution No. 10715 (2016 Series) Page 4 7. Off-site easements and/or dedications may be required to facilitate through street access and public water and sewer main extensions beyond the tract boundary and in accordance with the GASP. Looped water mains may be required in accordance with the tentative map, development phasing, and the City water model to provide adequate service and compliance with adopted codes and standards. 8. Off-site dedication/acquisition of property for this public right-of-way purpose may be necessary to facilitate orderly development and the anticipated OASP improvements. The subdivider shall work with the City and the land owner(s) to acquire the necessary rights-of-way. In the event the subdivider is unable to acquire said rights-of-way, the City Council may consider lending the subdivider its powers of condemnation to acquire the off- site right-of-way dedication, including any necessary slope and drainage easements. If condemnation is required, the subdivider shall agree to pay all costs associated with the off- site right-of-way acquisition (including attorney fees and court costs). 9. With respect to all off-site improvements, prior to filing of the Final Map, the subdivider shall either: a. Clearly demonstrate their right to construct the improvements by showing title or interest in the property in a form acceptable to the City Engineer; or, b. Demonstrate, in writing, that the subdivider has exhausted all reasonable efforts to acquire interest to the subject property and request that the City assist in acquiring the property required for the construction of such improvements and exercise its power of eminent domain in accordance with Government Code Section 66462 .5 to do so, if necessary. Subdivider shall also enter into an agreement with the City to pay all costs of such acquisition including, but not limited to, all costs associated with condemnation. Said agreement shall be in a form acceptable to the City Engineer and the City Attorney. If condemnation proceedings are required, the subdivider shall submit, in a form acceptable to the City Engineer, the following documents regarding the property to be acquired: i. Property legal description and sketch stamped and signed by a Licensed Land Surveyor or Civil Engineer authorized to practice land surveying in the State of California; ii. Preliminary title report including chain of title and litigation guarantee; iii. Appraisal of the property by a City approved appraiser. In the course of obtaining such appraisal, the property owner(s) must be given an opportunity to accompany the appraiser during any inspection of the property or acknowledge in writing that they knowingly waived the right to do so; iv. Copies of all written correspondence with off-site property owners including purchase summary of formal offers and counter offers to purchase at the appraised price. R 10715 Packet Pg. 236 Item 7 Resolution No. 10715 (2016 Series) Page 5 v. Prior to submittal of the aforementioned documents for City Engineer approval, the Subdivider shall deposit with the City all or a portion of the anticipated costs, as determined by the City Attorney, of the condemnation proceedings. The City does not and cannot guarantee that the necessary property rights can be acquired or will, in fact, be acquired. All necessary procedures of law would apply and would have to be followed. 10. Fire Department access shall be provided for each construction phase to the satisfaction of the Fire Chief. Phased street construction shall consider and provide suitable Fire Department hydrant access, circulation routes, passing lanes, and turn -around areas in accordance with current codes and standards. 11. All public streets shall conform to City Engineering Standards and OASP including curb, gutter, and sidewalk, driveway approaches, and curb ramps as approved by the City Engineer. Where conflicts occur between the City Engineering Standards and concepts identified in the GASP, final determination of shall design shall be provided by the City Engineer. Traffic calming improvements may be required at select locations within the subdivision. Improvements may include bulb -outs, elevated sidewalks/speed tables, or alternate paving materials to the satisfaction of the Public Works Department and Fire Department. 12. Final roadway alignment shall be consistent with the City Engineering Standards except where the applicant has requested and been granted a formal exception. 13. Final roundabout geometry shall be consistent with applicable engineering standards and design guidelines. 14. As part of public improvement plans review conversion of alleys / private road access points from a street type entrance to a driveway style entrance. Make revisions as necessary to the satisfaction of the Public Works Dept. 15. The developer shall record a Notice of Requirements with the map regarding the designed and installed traffic calming devices and that the subdivision is not eligible for future Residential Parking District or Neighborhood Traffic Management program processing. 16. The improvement plans shall include all final line -of -sight analysis at applicable intersections to the satisfaction of the Public Works Department. Fence heights and plantings in the areas of control shall be reviewed in conjunction with the analysis. A separate recorded agreement or Notice of Requirements for private property owner or HOA maintenance of sight lines may be required. 17. The final map and improvement plans shall include the required right-of-way, transit stop easements, and all details and furniture of the required bus turnout to accommodate the proposed new Type 1 bus stop along Orcutt Road per City Engineering Standards, ADA requirements, the GASP, and current Short Range Transit plan. The final details and length of the Orcutt Road bus turn-out/stop shall be approved to the satisfaction of the City Transit R 10715 Packet Pg. 237 Item 7 Resolution No. 10715 (2016 Series) Page 6 Manager and Public Works Director. The sidewalk width and path of travel shall be amended to comply with the ADA for transit stops. The turn -out length and geometry shall be revised to accommodate the proposed recycled water truck hydrant. The space shall be designed to accommodate a minimum 30' long, 5,000 gallon water truck. 18. The public improvement plans shall include full frontage improvements on Orcutt Road. The plans shall show, at a minimum, all improvements including concrete curb, gutter, and sidewalk per City Engineering Standards on the south side of Orcutt. The final street section shall include; 6' integral sidewalk, 8' parking lane, 6' bike lane, 12' travel lane, and a 14" two-way left turn lane, 12' travel lane, 6' bike lane, and a 5' detached sidewalk and parkways in accordance with the tentative map, OASP, City Engineering Standards, and the Cal Trans Highway Design Manual; the alternate street sections at the transitions, bridge(s), bus turn -out, and roundabout shall be approved by the City; undergrounding of the overhead utilities on the south (tract boundary) side; and any off -sites related to utility undergrounding, utility relocations, or new appurtenances. 19. The roundabout at A Street and Orcutt shall comply with all pertinent City Engineering Standards and The Highway Design Manual. Off-site traffic, pedestrian, and/or utility improvements related to the design of the round -a -bout shall be clearly shown and noted in the public improvement plans. 20. Any jurisdictional permits from the Army Corp, Fish and Wildlife, or Regional Water Quality Control Board required for the street and road improvements shall be issued prior to plan approval and/or commencing with work within the respective waterways. 21. The applicant shall conduct neighborhood speed surveys one year after occupancy of each construction phase at locations approved by the Director of Public Works. If 85th percentile speeds exceed current City NTM thresholds additional traffic calming measures shall be installed. The applicant shall bond for these potential additional traffic calming measures. 22. All mitigation measures (MM) specific to Transportation requirements shall be provided as detailed under Resolution No. XXXX (Approval of the MND), to the satisfaction of the City Engineer. 23. The subdivider may present financing and reimbursement programs for transportation improvements to be considered with approval and recordation of the initial final map for VTM#3083. Any such program(s) will be subject to approval by the City Council. 24. The subdivider shall be responsible for securing any off-site right-of-way needs for VTM#3083, and dedicating that right-of-way to the city as a condition of final map approval. 25. The final map and improvement plans shall include the required right-of-way and all construction details of the required improvements per City Engineering Standards and the OASP. R 10715 Packet Pg. 238 Item 7 Resolution No. 10715 (2016 Series) Page 7 26. Access rights shall be dedicated to the City along Orcutt Road and Street A except at approved driveway locations as shown on the tentative map. 27. The subdivider shall install public street lighting and all associated facilities including but not limited to conduits, sidewalk vaults, fusing, wiring, and luminaires along all public streets including Orcutt Road per City Engineering Standards. 28. Private street lighting may be provided along the private streets per City Engineering Standards and/or as approved in conjunction with the final ARC approvals. 29. Final street sections shall be approved in conjunction with the review and approval of the final project drainage report. The final design shall consider drainage, transitions, and accessibility. 30. All future public streets shall conform to City Engineering Standards including curb, gutter, and sidewalk, driveway approaches, and curb ramps. Traffic calming improvements may be required at select locations within in the subdivision. Improvements may include bulb -outs, elevated sidewalks/speed tables, or alternate paving materials to the satisfaction of the Public Works Department and Fire Department. The vertical and horizontal controls for A Street, streets A-2, A-3, and A-4 shall be shown to conform to the tentative map for neighboring Tract 3044 (Wingate) unless an alternate design is otherwise approved by the City. 31. Street trees are required as a condition of development. Street trees shall generally be planted at the rate of one 15 -gallon street tree for each 35 lineal feet of property frontage. Landscape plans may include grouping of trees to vary this standard, to achieve visual variety or to honor line -of -sight corridors within the subdivision. 32. The public improvement plans shall provide a final analysis of the trees to be removed and trees to be retained. The existing significant trees located along or across the tract boundary shall be specifically addressed and approved for removal by the City. A tree preservation plan shall be provided by a Certified Arborist for any trees to remain or to be relocated. 33. Improvement plans for the entire subdivision, including any off-site improvements shall be approved to the satisfaction of the Public Works Department, Utilities Department, and Fire Department prior to map recordation. Off-site improvements may include but are not limited to roadways, sewer mains, water mains, recycled water mains, and storm drain improvements. Off-site improvements may include off-site access roadways and utility system improvements. 34. A separate demolition permit will be required from the Building Division for the removal of any existing structures and related infrastructure. Building removals are subject to the Building Demolition Regulations including the additional notification and timing requirements for any structure over 50 -years old. The developer shall clarify any approvals necessary to remove the existing miscellaneous structures that are shown to straddle the easterly property line/tract boundary. R 10715 Packet Pg. 239 Item 7 Resolution No. 10715 (2016 Series) Page 8 35. The improvement plans shall clearly show all existing structures, site improvements, utilities, water wells, septic tanks, leach fields, gas and wire services, etc. The plan shall include any pertinent off-site water well and private waste disposal systems that are located within regulated distances to the proposed drainage and utility improvements. The plan shall include the proposed disposition of the improvements and any proposed phasing of the removal and demolition. All structures and utilities affected by the proposed lot lines shall be removed and receive final inspection approvals prior to map recordation. 36. If construction phasing of the new street pavement is proposed, the phasing shall provide for the ultimate structural street section and pavement life (per the City's Pavement Management Plan) prior to acceptance by the City. The engineer of record shall detail this requirement in the public improvement plans, to the satisfaction of the Public Works Director. 37. The improvement plan submittal shall include a complete construction phasing plan in accordance with the conditions of approval, City codes, and standards. A truck circulation plan and construction management and staging plan shall be included with the improvement plan submittal. General truck routes shall be submitted for review and acceptance by the City. The engineer of record shall provide a summary of the extent of cut and fill with estimates on the yards of import and export material. The summary shall include rough grading, utility trench construction, road construction, AC paving, concrete delivery, and vertical construction loading estimates on the existing public roadways. The developer shall either; 1) complete roadway deflection testing before and after construction to the satisfaction of the City Engineer and shall complete repairs to the pre -construction condition, or 2) shall pay a roadway maintenance fee in accordance with City Engineering Standards and guidelines, or 3) shall propose a pavement repair/replacement program to the satisfaction of the City Engineer prior to acceptance of the subdivision improvements. 38. Retaining wall and/or retaining wall/fence combinations along property lines shall be approved to the satisfaction of the Planning Division and shall conform with the zoning regulations for allowed combined heights or shall be approved through the ARC or separate fence height exception process. 39. The ARC plans and public improvement plans shall show the location of the proposed mail receptacles or mail box units (MBU's) to the satisfaction of the Post Master and the City Engineer. Provide a mailbox unit or multiple units to serve all dwelling units within this development as required by the Post Master. MBU's shall not be located along A Street, Orcutt Road, or within the public right-of-way or public sidewalk area unless specifically approved by the City Engineer. Contact the Post Master at 543-2605 to establish any recommendations regarding the number, size, location, and placement for any MBU's to serve the R-4 and R-2 neighborhoods. 40. Separate plans shall be submitted for the public park improvements and for any deferred private site development. Parking lot designs shall comply with the parking and driveway standards and Engineering Standard 2010. All parking spaces must be designed so that vehicles can enter in one maneuver. Furthermore, all spaces shall be designed so that vehicles can exit to the adjoining street in a forward direction in not more than two maneuvers. R 10715 Packet Pg. 240 Item 7 Resolution No. 10715 (2016 Series) Page 9 41. The proposed perpendicular parking along Street A-2 shall be owned and maintained by the Homeowners Association. The final street section, right-of-way, and easements shall be approved by the City. Any public easements or private encroachment agreements required in conjunction with the parking area shall be recorded in conjunction with the map. The parking area shall comply with the Parking and Driveway Standards unless other designs are approved by the Community Development Department. 42. The use of porous concrete or porous pavers shall be used for private parking areas, V - gutters, private curb and gutter, etc. to the extent feasible within the over-all drainage design for water quality treatment in accordance with the OASP. 43. Unless otherwise approved by the Public Works Department, the private alley connection to streets A-2 and A-4 shall be completed with driveway approaches per City Engineering Standards. 44. The subdivision improvement plans shall show that accessibility to all common areas within the R-2 and R-4 neighborhoods and off-site park area is achieved per ADA and the CBC to the satisfaction of the Building Division. Show access to BBQ and picnic tables, linear park elements, mailbox units, etc. Utilities 45. Separate utilities, including water, sewer, gas, electricity, telephone, and cable TV shall be served to each lot to the satisfaction of the Public Works Department and serving utility companies. All public and private sewer mains shall be shown on the public improvement plans and shall be constructed per City Engineering Standards unless a waiver or alternate standard is otherwise approved by the City. The plans shall clearly delineate and distinguish the difference between public and private improvements. 46. Specialized street pavement in the area of public storm drains, water and/or sewer mains may create maintenance/replacement concerns and additional costs. The final pavement sections shall be reviewed and approved in conjunction with ARC approvals and public improvement plan review. A separate agreement and/or CC&R provision shall be required to clarify that the West Creek Master HOA will have final street maintenance responsibility in areas of specialized pavement where said pavement is damaged or removed in conjunction with public improvements or maintenance of said public infrastructure. 47. Recycled water mains shall be installed in public streets in order to serve recycled water to the city park, HOA maintained landscaped areas, temporary irrigation for mitigation areas, and detention basins. The applicant shall work with the Water Division of the City's Utilities Department to determine the appropriate size of all proposed recycled water mains. 48. City recycled water or another non -potable water source, shall be used for construction water (dust control, soil compaction, etc.). An annual Construction Water Permit is available from the City's Utilities Department. Recycled water is readily available near the intersection of Tank Farm Road and Orcutt Road. R 10715 Packet Pg. 241 Item 7 Resolution No. 10715 (2016 Series) Page 10 49. Final grades and alignments of all public and/or private water, sewer and storm drains shall be approved to the satisfaction of the Public Works Director and Utilities Department. The final location, configuration, and sizing of service laterals and meters shall be approved in conjunction with the review of the building plans, fire sprinkler plans, and/or public improvement plans. 50. The gas main may need to be located into a joint trench in accordance with PUC and utility company standards to provide additional clearances within the pavement section of all streets to accommodate the several City public utility mains. 51. The proposed public storm drain lines located within A-2, A-3, and A-4 streets shall be relocated into the street pavement areas unless specific areas are specifically accepted by the Public Works Department. Otherwise, storm drain lines located under parkways, curb, gutter, and/or sidewalk shall be private for maintenance by the Homeowners Association. 52. The required extension of the existing public storm drains, culverts, or bridges for the street improvements and widening on Orcutt shall be approved to the satisfaction of the Public Works Department. The existing downstream outlets and creek corridors shall be cleared of existing trash, debris, deadwood, failed infrastructure, and obstructions to the satisfaction of the City. 53. The flowline for the outlet for the crossing at Fernwood shall be lowered to provide for free flow and to minimize maintenance concerns from backwater, ponding, or sedimentation. The culvert/bridge crossing at Lawnwood shall be evaluated for any material defects prior to extending or abandonment. The existing CMP culvert in disrepair may need to be replaced or lined to the satisfaction of the Public Works Department. The existing bridge and headwall structural system shall be abandoned and backfilled in favor of a conventional City Engineering Standard storm drain pipe to the satisfaction of the Public Works Department. 54. The improvement plans shall show the location of all domestic and landscape water meters. The plan shall include service lateral sizes and meter sizes. Sizing calculations may be required to justify service and meter sizing. Water impact fees related to the irrigation water meter(s) shall be paid prior to approval of the subdivision improvement plans for each pertinent map and/or construction phase. 55. Off-site utility improvements shall include water, sewer and recycled water as provided by Mitigation Measures USS-VTM3083-1, -2 and -3, to the satisfaction of the Utilities Director. 56. A reimbursement request, if proposed for the off-site water main upgrade, shall include all pertinent details and analysis in accordance with City and State codes and ordinances and shall be presented separately to the City Council. R 10715 Packet Pg. 242 Item 7 Resolution No. 10715 (2016 Series) Page 11 57. The City will not be responsible for replacement of any specialty street pavement within private streets. City trench repairs within private streets will be backfilled and finished per City Engineering Standards. 58. A final sewer report and supporting documentation for the OASP public sewer main design shall be approved by the Utilities Department prior to approval of the public improvement plans. The final sewer report shall discuss and present additional information and assumptions on the system elevations and grades that will allow other OASP parcels to utilize the proposed public sewer main in accordance with the OASP Wastewater Plan. The applicant shall submit an analysis of a backbone system that shows the elevations and grades that serve the adjacent parcels described in the study. The City will have the final discretion on the extent and limits of the study if additional properties could reasonably benefit from the proposed alignment. 59. The depth of the off-site and on-site sewer mains shall be approved to the satisfaction of the Utilities Director. The depth analysis shall consider the balance between the possible extent of the gravity sewer basin needed to serve the other OASP properties and the long- term public maintenance requirements related to sewer depth. 60. The public improvement plan submittal shall show all existing and proposed overhead wire utilities. Any existing overhead wiring within the tract boundary and adjoining Orcutt Road shall be undergrounded in conjunction with the subdivision improvements. Unless otherwise specifically approved, pole relocation in lieu of undergrounding is not supported. 61. Terminal end utility poles shall be located off-site unless otherwise approved by the City. 62. Preliminary undergrounding plans for the entire subdivision shall be processed through PG&E and any respective wire utility companies in conjunction with public improvement plan submittal. The undergrounding improvements shall be completed with each construction phase unless otherwise required earlier for orderly development, or specifically deferred to the satisfaction of the City. 63. Lighting fixtures, including public streetlights shall not exceed 16' in height in accordance with the OASP unless otherwise required for traffic safety. The developer shall submit a streetlight proposal for approval by the City Engineer for any public streetlights. Street lights associated with the Orcutt Road improvements, signalized intersections, or round -a- bouts. Street lighting shall comply with the OASP, Highway Design Manual and City Engineering Standards. 64. The Applicant shall provide easements and all-weather access for proposed sewer connection from the project's proposed "A" Street to Willow Circle. No trees shall be permitted in the sewer easement. R 10715 Packet Pg. 243 Item 7 Resolution No. 10715 (2016 Series) Page 12 65. The existing sewer main located within the UPRR right of way at the Bullock Lane/Capitolio crossing shall be upgraded/replaced from Bullock Lane to the manhole in Capitolio as a condition of development. The applicant and engineer of record shall coordinate a field meeting with Utilities Department staffprior to development of the plan and submittals to the respective agencies. 66. The developer shall submit an application and design for the new sewer to the City and UPRR in conjunction with the first phase of development and initial public improvement plan submittal. The installation shall be completed and final inspection approvals granted prior to the issuance of the building permit for the 301h residential unit. 67. Off-site utility improvements shall include the water main upgrade/replacement and extension from the High Pressure/Bishop Pressure zone at the intersection of Tanglewood/Johnson Avenue to serve the subdivision and replacement of the water main in Orcutt Road from the Orcutt/Johnson intersection to A Street. Pipe sizing is contingent upon the modeling for the proposed development phases and looping of the main. Pressure regulating valves (including connection with the City's SCADA system), control valves, or other appurtenances may be required by the Utilities Department as a part of the required water system improvements to be certain that the new area interacts properly with the existing water system. 68.Recycled water mains shall be extended from Tank Farm Road in coordination with other development in the OASP for irrigation of common area landscaping, streetscape, and any irrigated park or open space areas. A metered recycled water filling station shall be provided on Orcutt Road. Applicant shall work with the Water Division of the City's Utilities Department to determine the appropriate size of all proposed recycled water mains. 69. Irrigation systems using recycled water shall be designed and operated as described consistent with the City's Procedures for Recycled Water Use, including the requirement that sites utilizing recycled water require backflow protection on all potable service connections. Three sets of irrigation plans shall be submitted to the Building Department for review during the City's building permit review process. 70. Potable city water shall not be used for major construction activities, such as grading and dust control, as required under Prohibited Water Uses; Chapter 17.07.070.0 of the City's Municipal Code. Recycled water is available through the City's Construction Water Permit program. Information on the program is available at: http://www.slocity.org/home/showdocument?id=5909 71. Final alignment of all water and sewer mains to be approved by the Utilities Department. 72. The project's Landscape Plan shall be consistent with provisions of the City's declared drought emergency (estimated total water use (ETWU) cannot exceed 50 percent of maximum applied water allowance or (MAWA)). R 10715 Packet Pg. 244 Item 7 Resolution No. 10715 (2016 Series) Gradine, Drainage & Storm Water Page 13 73. Any permit approvals required from the Army Corp of Engineers, Californian Fish and Wildlife, or the Regional Water Control Board shall be secured and presented to the City prior to the approval of any subdivision grading and/or improvements related to the proposed phase of construction. The engineer of record shall review the permit approvals and any specific permit conditions for compliance with the plans, subdivision improvement designs, drainage system design/report, and soils report. The engineer of record shall forward the permits to the City with a notation that the permits have been reviewed and are in general conformance with the design of the improvements. 74. The public improvement plans submittal shall clarify how any wetlands, creek corridors, and riparian habitat areas will be preserved to the satisfaction of the Natural Resources Manager. Include any specific details for the proposed creek crossings in accordance with any preservation strategies, mitigation measures, and higher governmental authority agency permits. Sensitive areas shall be staked, fenced, or otherwise delineated and protected prior to commencing with construction, grading, or grubbing. 75. The developer shall exhaust reasonable efforts to eradicate and control the expansion of any known non-native and invasive species including but not limited to the Tree of Heaven and Castor Bean plants to the satisfaction of the Natural Resources Manager. These plants may require treatment in advance and prior to commencing with ground disturbing activities and grading. 76. Expansion index testing or other soils analysis may be required on a lot -by -lot basis for all graded pads and for in-situ soils on natural lots in accordance with the current Building Codes or where deemed necessary by the City Engineer or Building Official. 77. Final pad certifications shall include the certification of pad construction and elevations. The soils engineer shall certify all grading prior to acceptance of the public improvements and/or prior to building permit issuance. The certification shall indicate that the graded pads are suitable for their intended use. 78. Cut and fill slopes shall be protected as recommended by the soils engineer. Brow ditches, drainage collection devices, and drainage piping may be required. The public improvement plans and final map shall reflect any additional improvements and private easements necessary for slope protection and maintenance. Unless otherwise approved for public maintenance by the City Engineer, brow ditches and drainage collection devices upslope of building sites shall be maintained by the HOA. 79. The subdivision improvement plans shall include a complete grading plan to show site accessibility in accordance with State and Federal regulations for all public and/or private roads, transit stops, trails, paths, walks, bikeways, parks, and bridges where applicable. The submittal shall provide additional analysis if site accessibility will not be provided and for any feature or element where accessibility is purportedly not required. The accessibility regulations or guidelines in effect at the time of subdivision improvement construction will be applied. R 10715 Packet Pg. 245 Item 7 Resolution No. 10715 (2016 Series) Page 14 80. Unless updated by subsequent regulations or guidelines, the sidewalks within the private streets shall be widened to 5' or shall provide a 4' clear width with 5' passing lanes in accordance with the current ADA regulations. 81. The subdivision improvement plans, grading plans, drainage plans, and drainage reports shall show and note compliance with City Codes, Standards and Ordinances, Floodplain Management Regulations, OASP stormwater provisions, Waterways Management Plan Drainage Design Manual, and the Post Construction Stormwater Regulations as promulgated by the Regional Water Quality Control Board, whichever pertinent sections are more restrictive. 82. The improvement plan submittal shall include a complete grading, drainage, and erosion control plan. The proposed grading shall consider the proposed construction phasing. Historic off-site and upslope watersheds tributary to the area of phased construction shall be considered. Run-off from adjoining developed or undeveloped parcels shall be considered. 83. The calculated 100 -year flood limits shall be shown and noted on the improvement plans and an additional final map sheet for reference. The drainage report and final plans shall clarify the 100 -year flood elevations, clearances, and freeboard at all new vehicle bridge, pedestrian bridge, and pipe bridge crossings of the creek corridors. 84. The engineer of record shall provide a digital copy of the final HEC -RAS modeling to the City in accordance with Section 4.0 of the Waterways Management Plan Drainage Design Manual. 85. The developer shall prepare an Operations and Maintenance Manual for review and approval by the City in conjunction with the development of any stormwater BMP's that will be maintained by the HOA or by the respective private property owner. A Private Stormwater Conveyance Agreement shall be recorded in a format provided by the City prior to final inspection approvals and acceptance of subdivision improvements. 86. The subdivider/developer shall provide notification to private property owners regarding any individual maintenance responsibility of any parkway or backyard stormwater BMP's in accordance with Section E.2 of the RQWCB Resolution R3-2013-0032. The notification may be by Notice of Requirements or other method acceptable to the City. 87. The stormwater improvements other than City Standard public storm drain infrastructure shall be maintained by the HOA. A separate encroachment/hold harmless agreement may be required in conjunction with certain improvements proposed for location within the public rights-of-way 88. The final details for the proposed bioretention facilities located within the public right -of- way shall be approved to the satisfaction of the City Engineer. The project soils engineer shall review and provide recommendations on the proposed site constructed and/or proprietary retention systems. Analysis of impacts to the public improvements, protection of utilities, and methods to minimize piping and protection of private properties shall be addressed in the final analysis. R 10715 Packet Pg. 246 Item 7 Resolution No. 10715 (2016 Series) Page 15 89. The proposed detention basins and any pre -basin shall be designed in accordance with the OASP requirements and the Waterways Management Plan Drainage Design Manual. The proposed surface runoff and drainage from the detention basin(s) shall include a non- erosive outlet to an approved point of disposal. The outlet(s) design and location should replicate the historic drainage where feasible. Any off-site detention basin, temporary basin, or other drainage improvements shall be approved by the City. Any required or proposed off-site grading or drainage improvements shall be completed within recorded easements or under an appropriate license or other private agreement. 90. The subdivider shall submit CC&R's with the Final Map that establishes a Homeowner's Association (HOA). The HOA shall provide for the optional automatic annexation of all other tracts in the OASP as it relates to the shared regional detention basin. The subsequent tracts may, at their sole discretion, annex to the HOA, or demonstrate to the city's satisfaction how they will provide storm drainage mitigation through their own subdivision design and HOA. The HOA shall provide for maintenance of all private common area drainage channels, on-site and/or sub -regional drainage basins, water quality treatment and conveyance improvements. The CC&R's shall be approved by the City and shall be recorded prior to or concurrent with recordation of the Final Map. A Notice of Annexation or other appropriate mechanism to annex other subdivisions into the HOA, including but not limited to the shared regional detention basin, shall be recorded concurrently with the map. 91. The naming of the local creeks and drainages shall comply with the appropriate and pertinent creek naming standards and justifications. The inclusion of the naming on the final map and/or improvement plans shall be approved by the City prior to map and/or plan approval as applicable. 92. All bridging, culverting and modifications to the existing creek channels along with any necessary clearing of existing creek and drainage channels, including tree pruning or removals, and any necessary erosion repairs shall be in compliance with the OASP, city standards and policies, the Waterways Management Plan and shall be approved by the Natural Resources Manager, Public Works Department, Army Corp of Engineers, the Regional Water Quality Control Board, and California Fish & Wildlife. 93. Any existing areas of swale, creek and/or channel erosion shall be stabilized to the satisfaction of the City Engineer, Natural Resources Manager, and other permitting agencies. 94. The project soils engineer shall review the final grading and drainage plans and Low Impact Development (LID) improvements. The soils report shall include specific recommendations related to public improvements, site development, utility, and building pad/foundation construction related to the proposed LID improvements. The project soils engineering report shall be referenced on the final map in accordance with the Subdivision Regulations and City Engineering Standards. 95. The final plans and drainage report shall show and note compliance with City Engineering Standard 1010.13 for spring or perched groundwater management and for water quality treatment of run-off from impervious streets, drive aisles, parking areas, and trash enclosure. R 10715 Packet Pg. 247 Item 7 Resolution No. 10715 (2016 Series) Page 16 96. A SWPPP is required in accordance with State and local regulations. A hard copy of the SWPPP shall be provided to the City in conjunction with the Public Improvement Plan submittal and subsequent building plan submittals. The WDID number shall be included by reference on all construction plans sets. An erosion control plan shall be included with the improvement plans and all building plan submittals for demolitions, grading, and new construction. 97. The project development and grading shall comply with all air quality standards and mitigation measures. The developer shall provide written notification from the County Air Pollution Control District (APCD) regarding compliance with all local, state, and federal regulations including but not limited to the National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations related to Naturally Occuring Asbestos (NOA). Fire 98. All streets that are less than 28 feet in width shall be posted "No Parking — Fire Lane" on both sides. Streets less than 36 feet in width shall be posted on one side only. 99. The project shall provide water mains and city -standard fire hydrants to provide a minimum needed fire flow of 1500 GPM for 2 hours to within 300 feet of the exterior walls of all proposed structures. Fire hydrant spacing shall not exceed 500 feet. Homeowners'Association 100. Subdivider shall prepare conditions, covenants, and restrictions (CC& R's) to be approved by the City Attorney and Community Development Director prior to final map approval that establishes a "Master Homeowner's Association" (Master HOA). To the extent desired by the subdivider, individual phases of the project may include sub- associations. CC&R's shall minimally contain the following provisions that pertain to all lots: a. The initial set of CC&R's provided for the VTM#3083 final map shall provide for automatic annexation of subsequent phases to the Master HOA. A graphic or other exhibit describing all properties to be annexed to the West Creek Master HOA shall be included with any CC&R's for VTM#3083. b. All private improvements shall be owned and maintained by the individual property owners, sub -associations or the Master Homeowner's Association as applicable. Private improvements include but are not limited to streets, sidewalks, pedestrian and bike paths, sewer mains, drainage systems, detention basin(s), street lighting, landscape, landscape irrigation, and common area improvements. c. Grant to the city the right to maintain common areas if the HOA fails to perform, and to assess the HOA for expenses incurred, and the right of the city to inspect the site at mutually agreed times to assure conditions of CC&R's and final map are being met. d. No parking except in approved, designated spaces. R 10715 Packet Pg. 248 Item 7 Resolution No. 10715 (2016 Series) Page 17 e. No outdoor storage of boats, campers, motorhomes, or trailers nor long-term storage of inoperable vehicles. f. No outdoor storage by individual units except in designated storage areas. g. The responsibility for the placement of the trash and recycling containers at the street on collection days will be the responsibility of the property owner's association. The property owner's association shall coordinate with San Luis Garbage Company regarding the collection time and preferred location for the placement of trash and recycling containers to minimize the obstruction of project streets. h. No changes in city -required provisions of the CC&R's will be considered valid and in effect without prior City Council approval. i. Provision for all of the maintenance responsibilities outlined in various conditions. Pianninu Requirements 101. At the time of submittal of a request for a final map, the subdivider shall provide a written report detailing the methods and techniques employed for complying with all required environmental mitigation measures as adopted herein. 102. In order to be consistent with the requirements of the Orcutt Area Specific Plan and County Airport Land Use Plan, the property owner shall grant an avigation easement for the benefit and protection of the City of San Luis Obispo, the County of San Luis Obispo and the San Luis Obispo County Airport via an avigation easement document prior to the recordation of the final map. 103. All owners, potential purchasers, occupants (whether as owners or renters), and potential occupants (whether as owners or renters) shall receive full and accurate disclosure concerning the noise, safety, or overflight impacts associated with airport operations prior to entering any contractual obligation to purchase, lease, rent, or otherwise occupy any property or properties within the airport area. 104. Provisions for trash, recycle, and green waste containment, screening, and collection shall be approved to the satisfaction of the City and San Luis Obispo Garbage Company. Proposed refuse storage area(s) and on-site conveyance shall consider convenience, aesthetics, safety, and functionality. Ownership boundaries and/or easements shall be considered in the final design. Any common storage areas shall be maintained by the HOA and shall be included in the CCR's or other property maintenance agreement accordingly. The solid waste solutions shall be shown and noted on the submittal(s) for Architectural Review Commission (ARC) approvals. 105. Prior to the issuance of building permits for residential units, the Architectural Review Commission shall review the residential building program, including building and landscape improvements, and provide comments and recommendations to the Community Development Director. Final architectural design approval authority shall be vested in the Community Development Director. Director decisions may be appealed pursuant to standard city policies. R 10715 Packet Pg. 249 Item 7 Resolution No. 10715 (2016 Series) Page 18 106. Prior to the recording of any phase of the final map, the applicant shall enter into an Affordable Housing Agreement with the City Council that details the timing of construction of affordable units on-site and contains guarantees for failure to complete any or all of the affordable housing units (such as collecting affordable housing in -lieu fees, cash guarantees for the completion of the affordable units, providing a letter of credit, bond or other financial guarantee to assure compliance). 107. A construction phasing plan shall be submitted to the Community Development Director prior to the issuance of the first building permit. 108. The subdivider shall develop a Construction Management Plan for review and approval by the Public Works and Community Development Directors. The plan shall be submitted prior to the issuance of a building permit for proposed project buildings and/or a phase of buildings. In addition, the contractor or builder shall designate a person or persons to monitor the Construction Management Plan components and provide their contact names and phone numbers. The Construction Management Plan shall include at least the following items and requirements: a. A set of comprehensive traffic control measures, including scheduling of major truck trips and deliveries to avoid peak traffic and pedestrian hours, detour signs if required, directional signs for construction vehicles, and designated construction access routes. b. Notification procedures for adjacent property owners and public safety personnel regarding when major deliveries and more intensive site work may be occurring. b. Location of construction staging areas which shall be located on the project site, for materials, equipment, and vehicles. d. Identification of haul routes for movement of construction vehicles that would minimize impacts on vehicular and pedestrian traffic, circulation and safety, and noise impacts to surrounding neighbors. e. The applicant shall ensure that the construction contractor employs the following noise reducing measures: i. Standard construction activities shall be limited to between 7:00 a.m. and 7:00 p.m. Monday through Saturday. U. All equipment shall have sound -control devices no less effective than those provided by the manufacturer. No equipment shall have un -muffled exhaust pipes; and iii. Stationary noise sources shall be located as far from sensitive receptors as possible, and they shall be muffled and enclosed within temporary sheds, or insulation barriers or other measures shall be incorporated to the extent possible. R 10715 Packet Pg. 250 Item 7 Resolution No. 10715 (2016 Series) Page 19 f. Temporary construction fences to contain debris and material and to secure the site. g. Provisions for removal of trash generated by project construction activity. h. A process for responding to, and tracking, complaints pertaining to construction activity. i. Provisions for monitoring surface streets used for truck routes so that any damage and debris attributable to the trucks can be identified and corrected. j. Designated location(s) for construction worker parking. 109. Parklands Development Fee Credit. In exchange for development of the "West Creek neighborhood parks" (described as Lots 68, 69, 71, 72) or such other configuration of lots as finally agreed upon by the city, the subdivider shall be entitled to a parklands development fee credit of up to the allowed one-half of the overall parkland fee for improving and maintaining the referenced lots for public city use. The credit amount shall be considered by the Parks and Recreation Commission, with their recommendation to the City Council prior to recordation of a final map. The Parks and Recreation Commission shall be responsible for Final Design Review of the referenced parks prior to construction. 110. Pursuant to Government Code §66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review. 111. Conditions relating to phasing and timing of infrastructure are approved as contained herein, or as approved by the Community Development and Public Works Directors during review of public improvement plans and final maps. 112. Financing and "fair share" contribution plans may be submitted for City Council review with any final map application. The City Council will have sole discretion as to any reimbursement and/or fee credit programs implemented with said final maps. Upon motion of Council Member Christianson, seconded by Council Member Rivoire, and on the following roll call vote: AYES: Council Members Ashbaugh, Christianson and Rivoire, and Vice Mayor Carpenter NOES: None ABSENT: None RECUSED Mayor Marx R 10715 Packet Pg. 251 Item 7 Resolution No. 10715 (2016 Series) The foregoing resolution was adopted this 17` h day of May, 2016. ATTEST: Lee Price, MMC Interim City Clerk APPROVED AS TO FORM: Of J.hristine Dietrick City Attorney Page 20 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this — day of Lee Price, MMC Interim City Clerk R 10715 Packet Pg. 252 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 253 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 x x x Packet Pg. 254 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 255 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 256 Item 7 = = = = = = = = = = = = = = = = = = = = = = = = 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 257 Item 7 = = = = = = = = = = = == == = = = = = = = = = = = = = 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 258 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 259 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 260 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 261 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 262 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 263 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 264 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 265 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 266 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 267 Item 7 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Packet Pg. 268 Item 7 Meeting Date: 9/18/2018 FROM: Brigitte Elke, Interim Finance Director SUBJECT: STORM EVENT REIMBURSEMENT PROCESSING RECOMMENDATIONS 1. Adopt a resolution naming the City’s representatives to work with the California Governor’s Office of Emergency Services (CalOES) to receive grant funding for the tree damage caused in the February 2017 storm event. 2. Authorize the use of the funding to augment the Urban Forest’s 2018-19 budget for tree pruning and tree planting in the Downtown corridor. DISCUSSION Background In February 2017, the City of San Luis Obispo experienced a forceful storm event that fell three trees in Santa Rosa Park, a large Cypress in Laguna Lake Park, and another mature Cypress on Suburban Road. The Federal Emergency Management Agency (FEMA) recognized the event and grant funds became available to reimburse jurisdictions for expenditure related to clean -up of storm debris. CalOES, administering the funds for FEMA, has approved the City’s expenditure and the funds are being held by the Grants Processing Unit pending receipt of the Designation of Applicants Agent Resolution (OES 130 – Attachment b) and the Project Application for Federal Assistance (OES 89 – Attachment d). Once received, the funds in the amount of $19,559 will be released to the City. The resolution will authorize designated staff to proceed with submitting the requested forms as listed below: • Designation of Applicant’s Agent Resolution for Non-State Agencies (Attachment b): CalOES 130 Between the City and State of California – Governor’s Office of Emergency Services • CalOES Notification of Obligation (Attachment c): Obligates CalOES to pay the City for Public Assistance and SDAA Grant Programs, FEMA-4308-DR-CA, Cal OES ID: 079- 68154 in the amount of $19,559. • CalOES Form 89 (Attachment d): This form works with form CalOES 130 to attach the Authorized Agent to the Notification of Obligation package. CONCURRENCE The Public Works department has been consulted and is supportive of the recommended action. Packet Pg. 269 Item 8 ENVIRONMENTAL IMPACT The California Environmental Quality Act does not apply to the recommended actions in this report because the actions do not constitute a “project” under CEQA guidelines sec. 15378. FISCAL IMPACT The FEMA funds will reimburse the City for work related to the clean-up of tree debris from the 2017 storm event. $19,559 in expenditure were approved and will be released once the resolution has been approved and the appropriate forms filed. Since the storm damaged several mature trees in the City’s urban forest, staff recommends using the funds to augment the Urban Forest’s 2018- 19 budget for tree pruning and tree planting. ALTERNATIVE The City Council could refuse acceptance of the approved reimbursement. This is not recommended as it could assist in replacing trees in the City and provide for additional tree pruning budget. Attachments: a - Resolution b - CalOES 130 8.3.18 c - CalOES Notification of Obligation - FEMA-4308-DR-CA 6.4.2018 d - CalOES 89 8.21.18 Packet Pg. 270 Item 8 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DESIGNATING ITS AGENTS FOR DISASTER REIMBURSEMENT WHEREAS, in February 2017, the City of San Luis Obispo experienced a forceful storm event that was recognized by the Federal Emergency Management Agency (FEMA); and WHEREAS, funds were made available to jurisdictions to assist with clean-up of the debris caused by the storm event: and WHEREAS, the City of San Luis Obispo, as an eligible agency under the FEMA guidelines, sought reimbursement of the cost to clean-up several mature trees that had fallen: and WHEREAS, in order to access the approved funds, the City of San Luis Obispo needs to authorize agents to act on its behalf as required by FEMA and the State Office of Emergency Services (CalOES) to receive the financial assistance. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Finance Director, the Accounting Manager/Controller, and the Senior Accountant are hereby designated as the City’s agents to provide CalOES for all matters pertaining to such federal and state disaster assistance, the assurance, and agreements required. Furthermore, the Finance Director is hereby authorized to execute any and all documents forms, and agreements in order to implement FEMA and CalOES required forms. Packet Pg. 271 Item 8 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 2. The Mayor is hereby authorized to execute CalOES Form 130 – Designation of applicant’s agent resolution for non-sate agencies. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 272 Item 8 STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES Cal OES ID No: ______________________ Cal OES 130 DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES BE IT RESOLVED BY THE OF THE (Governing Body) (Name of Applicant) THAT , OR (Title of Authorized Agent) , OR (Title of Authorized Agent) (Title of Authorized Agent) is hereby authorized to execute for and on behalf of the , a public entity (Name of Applicant) established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. THAT the ________________________________________________, a public entity established under the laws of the State of California, (Name of Applicant) hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required. Please check the appropriate box below: This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below. This is a disaster specific resolution and is effective for only disaster number(s) ________________________ Passed and approved this day of , 20 (Name and Title of Governing Body Representative) (Name and Title of Governing Body Representative) (Name and Title of Governing Body Representative) CERTIFICATION I, , duly appointed and of (Name) (Title) , do hereby certify that the above is a true and correct copy of a (Name of Applicant) Resolution passed and approved by the of the (Governing Body) (Name of Applicant) on the day of , 20 . (Signature) (Title) Cal OES 130 (Rev.9/13) Page 1 Packet Pg. 273 Item 8 STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES Cal OES 130 - Instructions Cal OES Form 130 Instructions A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted Resolution is older than three (3) years from the last date of approval, is invalid or has not been submitted. When completing the Cal OES Form 130, Applicants should fill in the blanks on page 1. The blanks are to be filled in as follows: Resolution Section: Governing Body: This is the group responsible for appointing and approving the Authorized Agents. Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc. Name of Applicant: The public entity established under the laws of the State of California. Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California. Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the Governor’s Office of Emergency Services regarding grants applied for by the Applicant. There are two ways of completing this section: 1. Titles Only: If the Governing Body so chooses, the titles of the Authorized Agents would be entered here, not their names. This allows the document to remain valid (for 3 years) if an Authorized Agent leaves the position and is replaced by another individual in the same title. If “Titles Only” is the chosen method, this document must be accompanied by a cover letter naming the Authorized Agents by name and title. This cover letter can be completed by any authorized person within the agency and does not require the Governing Body’s signature. 2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document or their title changes. Governing Body Representative: These are the names and titles of the approving Board Members. Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents, and a minimum of two or more approving board members need to be listed. Certification Section: Name and Title: This is the individual that was in attendance and recorded the Resolution creation and approval. Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member (if a person holds two positions such as City Manager and Secretary to the Board and the City Manager is to be listed as an Authorized Agent, then the same person holding the Secretary position would sign the document as Secretary to the Board (not City Manager) to eliminate “Self Certification.” Cal OES 130 (Rev.9/13) Page 2 Packet Pg. 274 Item 8 Packet Pg. 275 Item 8 Packet Pg. 276 Item 8 Packet Pg. 277 Item 8 Packet Pg. 278 Item 8 Packet Pg. 279 Item 8 Packet Pg. 280 Item 8 Packet Pg. 281 Item 8 Packet Pg. 282 Item 8 Packet Pg. 283 Item 8 Packet Pg. 284 Item 8 Packet Pg. 285 Item 8 Packet Pg. 286 Item 8 Packet Pg. 287 Item 8 Packet Pg. 288 Item 8 Packet Pg. 289 Item 8 Packet Pg. 290 Item 8 Packet Pg. 291 Item 8 Packet Pg. 292 Item 8 Packet Pg. 293 Item 8 Cal OES 89 (Rev.02/17) (Page 1 of 3) STATE OF CALIFORNIA Disaster No: GOVERNOR’S OFFICE OF EMERGENCY SERVICES Cal OES 89 Cal OES ID No: DUNS No: PROJECT ASSURANCES FOR FEDERAL ASSISTANCE SUBRECIPIENT’S NAME: (Name of Organization) ADDRESS: CIT Y: STATE: ZIP CODE: TELEPHONE: FAX NUMBER: AUTHORIZED AGENT: TITLE: EMAIL ADDRESS: ASSURANCES – CONSTRUCTION PROGRAMS Note: Certain of these assurances may not be applicable to all of your projects. If you have questions, please contact the California Governor’s Office of Emergency Services. Further, certain federal assistance awarding agencies may require applicants to certify to additional assurances. If such is the case, you will be notified. As the duly authorized representative of the applicant, I certify that the subrecipient named above: 1. Has the legal authority to apply for federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-federal share of project costs) to ensure proper planning, management, and completion of the project described in this application. 2. Will give the awarding agency, the Comptroller General of the Unites States, Federal Office of Inspector General 2 CFR 200.336, and if appropriate, the state, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the assistance; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will not dispose of, modify the use of, or change the terms of the real property title, or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the federal interest in the title of real property in accordance with awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with federal assistance funds to assure nondiscrimination during the useful life of the project. 4. Will comply with the requirements of the assistance-awarding agency with regard to the drafting, review and approval of construction plans and specifications. 5. Will provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progress reports and such other information as may be required by the assistance awarding agency or state. 6. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 7. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gains. 8. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§ 4801 et seq.), which prohibits the use of lead based pain in construction or rehabilitation of residence structures. Packet Pg. 294 Item 8 Cal OES 89 (Rev.02/17) (Page 2 of 3) 9. Will comply with all federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L 88-352) which prohibits discrimination on the basis of race, color, or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C §§ 1681-1683 and 1685-1686) which prohibits discrimination on the basis of sex; (c) Section 504 of the rehabilitation Act of 1973, as amended (29 U.S.C. § 794) which prohibit discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101- 6107) which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 93- 255) as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616) as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§ 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd- 3 and 290 ee-3) as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to nondiscrimination in the sale, rental, or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) which may apply to the application. 10. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provides for fair and equitable treatment of persons displaced or whose property is acquired as a result of federal and federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of federal participation in purchases. 11. Will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $5,000 or more. 12. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.O 91-190) and Executive Order (E0) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§ 1451 et seq.); (f) conformity of federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. § 7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended, (P.L. 93-523); and (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.O. 93-205). 13. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§ 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 14. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO 11593 (identification and preservation of historic properties), and the Archeological and Historic Preservation Act of 1974 (16 U.S.C. 469a-1 et seq.). 15. Will comply with Standardized Emergency Management (SEMS) requirements as stated in the California Emergency Services Act, Government Code, Chapter 7 of Division 1 of Title 2, Section 8607.1(e) and CCR Title 19, Sections 2445, 2446, 2447, and 2448. 16. Subrecipients expending $750,000 or more in federal grant funds annually are required to secure an audit pursuant to OMB Uniform Guidance 2 CFR Part 200, Subpart F. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996. 17. Will disclose in writing any potential conflict of interest to the Federal awarding agency or pass-through entity in accordance with §200.112. 18. Will comply with all applicable requirements of all other federal laws, Executive Orders, regulations and policies governing this program. 19. Has requested through the State of California, federal financial assistance to be used to perform eligible work approved in the subrecipient application for federal assistance. Will, after the receipt of federal financial assistance, through the State of California, agree to the following: a. The state warrant covering federal financial assistance will be deposited in a special and separate account, and will be used to pay only eligible costs for projects described above; b. To return to the State of California such part of the funds so reimbursed pursuant to the above numbered application, which are excess to the approved actual expenditures as accepted by final audit of the federal or state government. c. In the event the approved amount of the above numbered project application is reduced, the reimbursement applicable to the amount of the reduction will be promptly refunded to the State of California. Packet Pg. 295 Item 8 Cal OES 89 (Rev.02/17) (Page 3 of 3) 20. The non-Federal entity for a Federal award must disclose, in a timely manner, in writing to the Federal awarding agency or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award §200.113. Failure to make required disclosures can result in any of the remedies described in §200.338 Remedies for noncompliance, including suspension or debarment. 21. Will not make any award or permit any award (subaward or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549 and 12689, “Debarment and Suspension.” “I, the official named below, CERTIFY UNDER P ENALTY OF P ERJURY that I am duly authorized by the above named subrecipient to enter into this agreement for and on behalf of the said subrecipient, and by my signature do bind the subrecipient to the terms thereof.” PRINTED NAME SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE DATE Packet Pg. 296 Item 8 Meeting Date: 9/18/2018 FROM: Michael Codron, Community Development Director Prepared By: Rachel Cohen, Associate Planner SUBJECT: SECOND READING TO ADOPT AN ORDINANCE ESTABLISHING CANNABIS BUSINESS OVERLAY ZONES WHERE CANNABIS BUSINESS ACTIVITY MAY BE PERMITTED WITHIN THE CITY RECOMMENDATION Adopt an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the City’s Zoning Code and Zoning Map to designate seven areas of the City as Cannabis Business Overlay Zones where cannabis businesses may be located as may be allowed or conditionally allowed by the underlying zoning district and the rules and regulations established in the City’s Municipal Code” (Attachment A and B ). DISCUSSION On September 4, 2018, the City Council vot ed 5:0 to introduce Ordinance No. 1653 (2018 Series) to rezone land within seven areas of the City as Cannabis Business Overlay Zones (CBZs). The City’s official zoning map will be updated to reflect the CBZ locations. The CBZs identify the areas within the City of San Luis Obispo where a cannabis business may be located, provided that the proposed business type is also allowed or conditionally allowed by the underlying zoning of the property. The seven areas include land in the Mid-Higuera Area, South Higuera Area, Broad Street Area, Duncan-McMillan Area, Sacramento Drive Area, Margarita Area, and Airport Area. According to the City’s Municipal Code, a cannabis business must first go through an application process to determine eligibility to operate within the City of San Luis Obispo. Once eligibility is determined, an application for a land use permit and business license may follow. The City’s ordinance provides for up to three retail stores, and 10,000 square feet of canopy for indoor cultivation as cumulative maximums throughout the City. Other uses that are allowed with the appropriate land use approval include Manufacturing, Testing, Non-Storefront Retail, and Distribution. A revenue measure has been placed on the November 2018 election ballot. The City’s cannabis regulations will not go into effect unless the residents of the City vote affirmatively to approve the revenue measure. ALTERNATIVES 1. Continue the proposed ordinance. The City Council may continue action if more information is needed to adopt the final ordinance. Direction should be provided to staff so that additional information can be prepared, and a final action can be scheduled for a future meeting. 2. Reject the proposed ordinance. The City Council may reject the proposed ordinance if addit ional changes are desired. Direction should be provided to staff to make changes to the ordinance, and to return to the Council to introduce the new ordinance at a future public hearing. Packet Pg. 297 Item 9 Attachments: a - Council Ordinance b - Exhibit A Cannabis Overlay Zone Maps Packet Pg. 298 Item 9 R ______ ORDINANCE NO. 1653 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S ZONING CODE AND ZONING MAP TO DESIGNATE SEVEN AREAS OF THE CITY AS CANNABIS BUSINESS OVERLAY ZONES WHERE CANNABIS BUSINESSES MAY BE LOCATED AS MAY BE ALLOWED OR CONDITIONALLY ALLOWED BY THE UNDERLYING ZONING DISTRICT AND THE RULES AND REGULATIONS ESTABLISHED IN THE CITY’S MUNICIPAL CODE (CODE-1058-2017) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on July 25, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of considering amendments to the zoning code and the zoning map to establish Cannabis Overlay Zones and making recommendations to the City Council regarding such amendments; WHEREAS, overlay zones are recommended as a more precise way to establish the locations in the City where cannabis business activities may be appropriate; and WHEREAS, the proposed Cannabis Overlay Zones are sufficient in size to allow for a variety of cannabis business activities to occur in various locations of the City; and WHEREAS, the locations of the zones have been established in consideration of adjacent uses, and, all new cannabis businesses are subject to a requirement to obta in a land use permit, which is a process that provides for notification of neighboring property owners, businesses, and residents, and ensures compatibility of uses through the imposition of conditions of approval; and WHEREAS, on September 4, 2018, the City Council considered such amendment in a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California ; and WHEREAS, the City Council has duly considered all evidence, including the testimony interested parties, and the evaluation and recommendations of staff presented at said hearing. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Finding. The proposed “CBZ” overlay zoning is intended to more precisely implement the rules and regulations associated with cannabis business activity in the City, as detailed in Chapter 17 and Chapter 9 of the City’s Municipal Code. SECTION 2. Environmental Review. The project is exempt from environmental review per the Business and Professions Code (Section 26055(h)) because the project includes the adoption of ordinances, rules, or regulations for the purpose of regulating cannabis business activity in the City. The City’s cannabis business regulations require discretionary review and Packet Pg. 299 Item 9 Ordinance No. 1653 (2018 Series) Page 2 approval of permits, licenses, or other authorizations to engage in commercial cannabis activity. Future applications for commercial cannabis business activities in the City will be subject to CEQA, per the normal environmental review process. SECTION 3. Action. The City Council hereby adopts an ordinance: (1) amending the City’s Zoning Map to designate properties that will be included in the CBZ, in se ven separate areas of the City as depicted in Exhibit A which is incorporated herein by this reference; and (2) amending San Luis Obispo Municipal Code Section 17.06.0 10 by adding the “CBZ - Cannabis Business Overlay Zone” as a zoning designation. Packet Pg. 300 Item 9 Ordinance No. 1653 (2018 Series) Page 3 SECTION 4. Severability. If any subdivision, paragraph, sentence, clause or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. INTRODUCED on the 4th day of September 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 18th day of September 2018, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Cit y of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 301 Item 9 PISMO S T C A R M E L S T PACIFI C S T HIGH ST HIGUERA ST M A R S H S T BE E B E E S T SOUTH ST W A L K E R S T A R C H E R S T BR O O K S T BUCHO N S T BIANCHI ST P A CIFIC PIS M O A L L E Y SANDERCOCK ST BRANCH ST PA R K E R S T HWY101 Cannabis Zones Parcels C-R C-S C-T C/OS M R-2 R-3 R-4 Mid-Higuera 0 100 200 300 400 500 FeetO Overlay Area 2018/08/15Packet Pg. 302 Item 9 B R O A D S T MUTSU H I T O A V E ROUNDHOUSE AVE SOUTH ST FE N N E L S T LAWRE N C E D R ORCUTT RD SAN TA BAR BAR A ST MORRISON ST SAN CARLOS DR FRANC I S S T CAUDILL ST GA I L P L BU S H N E L L S T LA W T O N A V E VI C T O R I A A V E VI C T O R I A A V E LEONA AVE CH A N D L E R S T WOODBRIDGE ST FUNSTON AVE ALPHO N S O S T GA R I B A L D I A V E HUMBE R T A V E CAUDIL L S T MITCHELL DR STONERIDGE DR LAWRENCE DR SWEEN E Y L N BRANCH ST PERKIN S L N EM I L Y S T BL V D D E L C A M P O FENNELST DU N C A N R D MC M I L L A N A V E Cannabis Zones Parcels 300' Residential Zone C-C C-N C-R C-S C/OS M O PF R-1 R-2 R-3 R-4 South Broad 0 200 400 600 800 1,000 FeetO Overlay Area 2018/08/15Packet Pg. 303 Item 9 ORCUTT RD MORRISON ST GA R I B A L D I A V E DU N C A N R D MC M I L L A N A V E Cannabis Zones Parcels C-C C-S C/OS M O PF R-3 R-4 Duncan McMillan 0 100 200 300 400 500 FeetO Overlay Area 2018/08/15Packet Pg. 304 Item 9 FE N N E L S T LAVENDER ST TARRAGON LN CORIANDER ST FENNELST BAYLEAF DR VIA ES T E B A N SA C R A M E N T O D R R O B E R T O C T M I G U E L I T O C T BASILLN H O L L Y H O C K W A Y WILLO W CIR B U L L O C K L N INDUSTR I A L W A Y RICAR D O S T C A P I T O L I O W A Y B R O A D S T B O U G A I N V I L L E A S T Cannabis Zones Parcels C-C C-R C-S C/OS M PF R-1 R-2 R-3 R-4 Sacramento Industrial 0 100 200 300 400 500 FeetO Overlay Area 2018/08/15Packet Pg. 305 Item 9 S H I G U E R A S T GRANADA DR PRADORD BONETTI DR HIND LN LON G S T SU E L D O S T EM P R E S A D R EMP L E O S T OL D W I N D M I L L L N TAN K FARM RD ZACA L N FRO N T A G E R D MEISSNER ST PRADO RD Cannabis Zones Parcels BP C-S C/OS M O PF R-2 Higuera Commerce Park 0 100 200 300 400 500 FeetO Overlay Area 2018/08/15Packet Pg. 306 Item 9 SU E L D O S T TANK FARM RD PRADO RD MARGARITA AV E Cannabis Zones Parcels BP C-N C-S C/OS M O PF R-1 R-2 R-3 Margarita 0 200 400 600 800 1,000 FeetO Overlay Area 2018/08/15Packet Pg. 307 Item 9 TANK FARM RD BUCKLEY RD SANTAFE RD HOOVERRD B R O A D S T PRADO RD L O S O S O S V A L L E Y R D HW Y 1 0 1 MARGARITA AV E S H I G U E R A S T Cannabis Zones Parcels 300' Residential Zone BP C-C C-N C-R C-S C-T C/OS M O PF R-1 R-2 R-3 R-4 Airport 0 800 1,600 2,400 3,200 4,000 FeetO Overlay Area 2018/08/23 EXHIBIT A Packet Pg. 308 Item 9 Meeting Date: 9/18/2018 FROM: Deanna Cantrell, Police Chief Prepared by: Chris Staley, Captain SUBJECT: MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO, CITY OF SAN LUIS OBISPO POLICE DEPARTMENT AND RISE RECOMMENDATION Authorize the City Manager to sign the Memorandum of Understanding between the City of San Luis Obispo, City of San Luis Obispo Police Department and RISE (Respect Inspire Support Empower). (Attachment A) DISCUSSION RISE is a local non-profit that provides various services and programs for victims of intimate partner violence and sexual assault/abuse. The City of San Luis Obispo and the San Luis Obispo Police Department have had an excellent professional working relationship with RISE for many years. The Police Department and the City of San Luis Obispo were approached by members of RISE to participate in a Memorandum of Understanding with the intended goal of preventing and reducing instances of sexual violence in the City. RISE is hoping to receive funding through a grant to fund a program calle d Close to Home. Close to Home is a sexual violence prevention program that is evidence -based and designed to empower, educate, and guide members of the community in preventing sexual violence in a way that is unique to that community. RISE would be only one of eight Rape Crisis Centers in California to be implementing this program. Close to Home's goal is to prevent sexual violence before it starts whether it is addressing risk factors that put people in vulnerable positions to experience sexual violence or risk factors that lead to people perpetrating sexual violence. The is accomplished through targeted messaging and increased outreach by RISE staff to specific populations. The goals of Close to Home are aligned with the Police Department mission statement and strategic plan. This partnership will allow the Police Department to assist RISE on reaching the Close to Home goals, while also furthering Police Department goals. The partnership will require very limited City resources to make the program successful and the estimated staff time for the project is minimal. Part of this pro gram also involves the collection of data. Whatever data that is collected from RISE will be available for the City and its departments to utilize in crime prevention efforts. Packet Pg. 309 Item 10 RISE is requesting the City's support by assisting with media/social media promotion of recruitment efforts, workshops, community activities and events in the City that work toward preventing sexual violence. Any requested promotion of activities will be mutually agreed upon prior to any promotion. Additionally, RISE would also like acknowledgment/promotion of the work RISE and the City are doing from City Council and anyone else in a recognized position of authority within the organization. This will be accomplished by using the City’s existing communication channels and resources. If granted, RISE will be provided funding for this project through the California Department of Public Health in Collaboration with California Coalition Against Sexual As sault. RISE has also already secured partnerships in the community with Stand Strong, Cal Poly and GALA for this program. ENVIRONMENTAL REVIEW No environmental review necessary for this request as it is not a project under CEQA. FISCAL IMPACT Staff do es not anticipate any significant fiscal impacts associated with the Memorandum of Understanding. Any additional work is expected to be able to be accomplished through existing resources. ALTERNATIVE Do not approve the Memorandum of Understanding with RISE. Staff recommends against this alternative because of the overall community benefits from this program. The intended goals of the program, to prevent and reduce instances of sexual violence in the Cit y, further enhances the overall safety of the commu nity. Attachments: A - MOU RISE Packet Pg. 310 Item 10 Packet Pg. 311 Item 10 Page intentionally left blank. Packet Pg. 312 Item 10 Meeting Date: 9/18/2018 FROM: Michael Codron, Community Development Director Prepared By: Walter Oetzell, Assistant Planner SUBJECT: ADD THE PROPERTY AT 1568 HIGUERA TO THE MASTER LIST OF HISTORIC RESOURCES AS “THE MILES FITZGERALD HOME” AND ADD THE PROPERTY AT 1582 & 1592 HIGUERA AND 1061 GROVE TO THE CONTRIBUTING PROPERTIES LIST OF HISTORIC RESOURCES RECOMMENDATION As recommended by the Cultural Heritage Committee, adopt a resolution (Attachment A) adding the property at 1568 Higuera Street to the Master List of Historic Resources as “The Miles Fitzgerald Home,” and adding the property at 1582 & 1592 Higuera Street and 1061 Grove Street to the Contributing Properties List of Historic Resources DISCUSSION The owner of the subject properties has requested that they be includ ed in the City’s Master List of Historic Resources. The properties are not currently included in the City’s Inventory of Historic Resources, nor are they located within any historic district. On May 21, 2018 the Cultural Heritage Committee considered this request and found that both properties meet eligibility criteria for historic listing, but that only the property at 1568 Higuera (referred to as the “Miles Fitzgerald Home”) qualified for designation as a Master List Historic Resource. Accordingly, the Committee recommended that the City Council add 1568 Higuera to the Master List of Historic Resources and add the other property (1582 & 1592 Higuera and 1061 Grove) to the Contributing List of Historic Resources. Site and Setting The subject properties are two parcels at the northwest corner of Higuera and Grove Streets, in an Office (O) Zone. The immediate surroundings are characterized by older single-family dwellings of various styles, some converted to office use, and several small-scale commercial buildings. Though many of the residential structures are older buildings with historical character, no properties in these blocks of Higuera or Grove are included in the City’s Inventory of Historic Resources. The property at 1568 Higuera is developed with a single-family residence built in 1925, Figure 1: Fitzgerald Home (1568 Higuera) Packet Pg. 313 Item 11 (hereinafter referred to as the Fitzgerald Home) and a detached garage added a year later.1 The adjacent property has a duplex (1582 & 1592 Higuera) built in 1928 and a single-family residence (1061 Grove) built in 1929 (hereinafter referred to as the Steiner Residences).2 A Historic Resource Evaluation has been prepared for the property by Betsy Bertrando of Bertrando & Bertrando Research Consultants, describing the history of the propert ies (Attachment C), the buildings, and the people associated with them. This report summarizes relevant information from the Bertrando Evaluation. Building Architecture As described in the Historic Resource Evaluation, all three of the buildings are of a Spanish Colonial Revival st yle, stucco with tiled roofs. Thomas Maino, a noted local builder, is identified as the builder of the Steiner Residences, and is presumed to be the builder of the Fitzgerald Home.3 The architectural characteristics of the structures on these properties is more fully discussed in the Historic Resource Evaluation submitted with this application, and summarized in the Evaluation section of this report, below. The Fitzgerald Family 4 Miles Andrew Fitzgerald was the second child (of six) born to Andrew F. Fitzg erald, an Irish immigrant and Mary F. Duff, whose family came to the area in the late 19th century. Andrew Fitzgerald was an insurance and real estate agent, served on the Grand Jury and as City Treasurer, and was active in the community, helping select the location of the City Library and Cal Poly. Miles Fitzgerald was born in San Luis Obispo in 1893. In 1923 he was elected as City Attorney, a post he held for more than forty years,5 and served on various City committees during this period. Echoing the wo rk of his father, he served on the Library Board, finding a new location for the library and arranging the use of the Carnegie Library as a museum. He was a founding member of the San Luis Obispo County Historical Society and was instrumental in the acquisition and preservation of the Dallidet Adobe, a local landmark and Master List Historic 1 Betsy Bertrando, “Historic Resource Evaluation: Miles Fitzgerald Home; Annie Steiner Residences” (February 2018), pg. 15 2 Ibid. 3 Ibid., pg. 22 4 Summarized from Bertrando, beginning from pg. 10 5 Bertrando, pg. 22 Figure 2: Annie Steiner Residences: 1582 & 1592 Higuera (left, center); 1061 Grove (right) Packet Pg. 314 Item 11 Resource. Miles and his wife Emma moved into the house at 1568 Higuera in 1925 after its completion and resided there throughout their lives (Miles died in 1967; Emma in 1982). Anna M. Steiner6 Anna M. Steiner was an immigrant from Switzerland who settled on a ranch in Edna with her husband Karl and, after his death, moved into the recently-completed duplex at 1582 & 1592 Higuera in 1928. She lived in the building, rent ing the adjoining unit and the adjacent single- family dwelling (completed in 1929) until her death in 1943. Among her tenants were health care practitioners associated with Mountain View Hospital and Stover’s Sanitarium (now French Hospital) nearby. Evaluation of Eligibility for Listing For a property to be eligible for listing as an historic or cultural resource, the resource must exhibit a high level of historic integrity, be at least 50 years old, and meet one or more of the eligibility criteria described in § 14.01.070 of the Historic Preservation Ordinance (see Attachment D). As provided in § 14.01.050 of the Ordinance, eligible resources that maintain their original or attained historic and architectural character, and contribute, either by themselves or in conjunction with other structures, to the unique or historic character of a neighborhood, district, or to the City as a whole, may be designated as "Contributing List Resources or Properties." The most unique and important resources and properties in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past may be designated as “Master List Resources.” Architectural Criteria As detailed in the Historic Resource Evaluation prepared for this application, the buildings on both properties satisfy criteria under § 14.01.070 A (1) related to architectural style. Stucco cladding, red clay tile roofs, wood-frame casement and double-hung windows, and arched building features are common t o all the buildings, embodying the distinctive characteristics of the Spanish Colonial Revival style, popular in the early decades of the 20th Century (see Attachment E), with several extant examples throughout the City. The Fitzgerald Home also has a dist inctive corredor, a wide porch under a low roof with exposed rafters, running across the front of the house, and a “U-shaped” layout providing a pleasant courtyard on its east side. The Grove Street house has wrought -iron grillwork at the base of the entry window. All of the buildings are attributed to Thomas Maino, a noted local builder of the time, and exhibit notable attractiveness arising from a high quality of design, detailing, and craftsmanship. Historic Criteria The Fitzgerald Home is closely assoc iated with the Miles A. Fitzgerald, a person important to local history, as summarized in this report and detailed in the Historic Resource Evaluation prepared for this application, satisfying criteria under § 14.01.070 (B) (1) and (B) (3) related to historical persons and context. Mr. Fitzgerald lived at 1568 Higuera for about 45 years, most of his adult life. He was particularly significant to the community as a public servant, with a long period of service as City Attorney and in other important functions in City government, through his involvement in the foundation of the San Luis Obispo County Historical Society, and in community organizations such as Rotary, Knights of Columbus, and the Order of the Elks. 6 Summarized from Bertrando, beginning from pg. 14 Packet Pg. 315 Item 11 Integrity Each of the buildings on the subject properties also exhibits a high level of historical integrity, in satisfaction of criteria set out in § 14.01.070 (C). The buildings remain in their original locations and are unaltered, except for a minor bathroom addition having been made to the Fitzger ald Home in 1933, and subsequent minor alterations to the kitchen. With only two noted exceptions (two replaced windows), the interiors retain original doors, windows, fixtures, hardware, and built -in cabinetry. Conclusion According to the information in the applicant’s narrative documenting the historical significance and architectural character of the houses, both properties are eligible for inclusion in the City’s Inventory of Historic Resources. All of the structures convey a purity of style and exhibit attractiveness through detailing and craftsmanship, and are associated with a notable builder, satisfying the Architectural Criteria for Style, Design, and Architect set out in § 14.01.070 (A) of the City’s Historic Preservation Ordinance. They also occu py their original site, are largely unaltered, and retain their characteristic design and materials, satisfying criteria for Integrity set out in § 14.01.070 (B) of the Ordinance. Notwithstanding the attractiveness and high level of craftsmanship exhibite d by the Steiner Residences, the Spanish Colonial Style is not particularly rare, and while Ms. Steiner was a valued member of the community, the buildings do not exhibit a rare or unique architectural style and do not appear to have association with people or events that would qualify the property for designation as a “Master List Resource.” Thus, it is appropriate to designate the property at 1582 & 1592 Higuera and 1061 Grove Street as a “Contributing List Historic Resource. The Fitzgerald Home is assoc iated with the life of Miles A. Fitzgerald, a person significant to local history as a public servant who made important contributions to the community through his service as City Attorney and through his efforts as a founding member of the San Luis Obispo County Historical Society to preserve important local historic landmarks. This association satisfies Historic Criteria under § 14.01.070 (B) (1) of the Ordinance. The property at 1568 Higuera, therefor, qualifies for designation as a “Master List Resource.” ENVIRONMENTAL REVIEW This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). Inclusion of the subject properties on the City’s Inventory of Historic Resources does not have the potential for causing a significant effect on the environment, and so is covered by the general rule described in § 15061 (b) (3) of the CEQA Guidelines. FISCAL IMPACT Listing of properties as historic resources has no fiscal impact. Packet Pg. 316 Item 11 ALTERNATIVES 1. Do not add the properties to the City’s Inventory of Historic Resources, based on finding that the they do not satisfy the criteria for designation as a listed historic resource. 2. Consider an alternative designation (“Master List” or “Contributing List”) for each property added to the City’s Inventory of Historic Resources, based on findings related to its uniqueness and importance, in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past. 3. Continue the it em for additional information or discussion. Attachments: a - City Council Resolution (Draft) b - Vicinity Map c - Historic Resource Evaluation d - Evaluation Criteria e - Spanish Colonial Revival Style Packet Pg. 317 Item 11 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA ADDING THE PROPERTY LOCATED AT 1568 HIGUERA STREET TO THE MASTER LIST OF HISTORIC RESOURCES AS “THE MILES FITZGERALD HOME” AND ADDING THE PROPERTY LOCATED AT 1582 & 1592 HIGUERA STREET AND 1061 GROVE STREET TO THE CONTRIBUTING PROPERTIES LIST OF HISTORIC RESOURCES (HIST-1458-2018) WHEREAS, the applicant, Thomas Menzie Cliff, filed an application on March 7, 2018, for review of the inclusion of the properties at 1568, 1582, and 1592 Higuera Street, and 1061 Grove Street on the City’s Master List of Historic Resources; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on May 21, 2018, and recommended that the City Council add the property at 1568 Higuera Street to the Master List of Historic Resources, and to add the property at 1582 & 1592 Higuera Street and 1061 Grove to the Contributing List of Historic Resources ; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on September 18, 2018, for the purpose of considering the request to add the properties to the Inventory of Historic Resources; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation, testimony of the applicant and interested parties, and the evaluation and recommendation presented by staff. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: a) The subject properties are eligible for inclusion in the City’s Inventory of Historic Resources because they satisfy at least one of the evaluation criteria for historic resource listing described in the § 14.01.070 of the City’s Historic Preservation Ordinance (HPO), exhibit a high degree of historic integrity, and are more than 50 years old. b) The structures on the subject properties satisfy evaluation criteria related to architectural style (HPO §14.01.070 (A)) because they convey a purity of style and exhibit attractiveness through detailing and craftsmanship, and are associated with Packet Pg. 318 Item 11 Resolution No. _____ (2018 Series) Page 2 R ______ Thomas Maino, a notable local builder. They occupy their original site, are largely unaltered, and retain their characteristic design and materials, satisfying criteria for Integrity (HPO § 14.01.070 (C)). c) The property at 1568 Higuera Street (the Miles Fitzgerald Home) qualifies for designation as a Master List Resource because it has maintained its original historic and architectural character, contributes to the historic character of the City, and is associated with Miles A. Fitzgerald, an important person in the City’s history who served as City Attorney and was a founding member of the San Luis Obispo County Historical Society. The association with the life of a person important to local history also satisfies Historic Criteria set out in HPO § 14.01.070 (B) (1). d) The property at 1582 & 1592 Higuera Street and 1061 Grove Street qualifies for designation as a Contributing List Resource because it has maintained its original historic and architectural character, and contributes to the historic charact er of the City. SECTION 2. Environmental Determination. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). Inclusion of the subject properties on the City’s Inventory of Historic Resources does not have the potential for causing a significant effect on the environment, and so is covered by the general rule described in § 15061(b)(3) of the CEQA Guidelines. Packet Pg. 319 Item 11 Resolution No. _____ (2018 Series) Page 3 R ______ SECTION 3. Action. The City Council of the City of San Luis Obispo does hereby include the property located at 1568 Higuera Street to the Master List of Historic Resources as “The Miles Fitzgerald Home,” and does hereby add the property at 1582 & 1592 Higuera Street and 1061 Grove Street to the Contributing Properties List of Historic Resources. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 18th day of September 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 320 Item 11 O O C-T-S O C-T C-T R-2 O O C-T C/OS-5 PF HIGUE R A G R O V E MON T E R E Y C A L I F O R N I A VICINITY MAP HIST-1458-2018 1568, 1582, 1592 Higuera & 1061 Grove ¯ ATTACHMENT 2 Packet Pg. 321 Item 11 ATTACHMENT 3 Packet Pg. 322 Item 11 ATTACHMENT 3 Packet Pg. 323 Item 11 ATTACHMENT 3 Packet Pg. 324 Item 11 ATTACHMENT 3 Packet Pg. 325 Item 11 ATTACHMENT 3 Packet Pg. 326 Item 11 ATTACHMENT 3 Packet Pg. 327 Item 11 ATTACHMENT 3 Packet Pg. 328 Item 11 ATTACHMENT 3 Packet Pg. 329 Item 11 ATTACHMENT 3 Packet Pg. 330 Item 11 ATTACHMENT 3 Packet Pg. 331 Item 11 ATTACHMENT 3 Packet Pg. 332 Item 11 ATTACHMENT 3 Packet Pg. 333 Item 11 ATTACHMENT 3 Packet Pg. 334 Item 11 ATTACHMENT 3 Packet Pg. 335 Item 11 ATTACHMENT 3 Packet Pg. 336 Item 11 ATTACHMENT 3 Packet Pg. 337 Item 11 ATTACHMENT 3 Packet Pg. 338 Item 11 ATTACHMENT 3 Packet Pg. 339 Item 11 ATTACHMENT 3 Packet Pg. 340 Item 11 ATTACHMENT 3 Packet Pg. 341 Item 11 ATTACHMENT 3 Packet Pg. 342 Item 11 ATTACHMENT 3 Packet Pg. 343 Item 11 ATTACHMENT 3 Packet Pg. 344 Item 11 ATTACHMENT 3 Packet Pg. 345 Item 11 ATTACHMENT 3 Packet Pg. 346 Item 11 ATTACHMENT 3 Packet Pg. 347 Item 11 ATTACHMENT 3 Packet Pg. 348 Item 11 ATTACHMENT 3 Packet Pg. 349 Item 11 ATTACHMENT 3 Packet Pg. 350 Item 11 ATTACHMENT 3 Packet Pg. 351 Item 11 ATTACHMENT 3 Packet Pg. 352 Item 11 ATTACHMENT 3 Packet Pg. 353 Item 11 ATTACHMENT 3 Packet Pg. 354 Item 11 ATTACHMENT 3 Packet Pg. 355 Item 11 ATTACHMENT 3 Packet Pg. 356 Item 11 ATTACHMENT 3 Packet Pg. 357 Item 11 ATTACHMENT 3 Packet Pg. 358 Item 11 12 Zoning, or remove the property from historic listing if the structure on the property no longer meets eligibility criteria for listing, following the process for listing set forth herein. 14.01.070. Evaluation Criteria for Historic Resource Listing When determining if a property should be designated as a listed Historic or Cultural Resource, the CHC and City Council shall consider this ordinance and State Historic Preservation Office (“SHPO”) standards. In order to be eligible for designation, the resource shall exhibit a high level of historic integrity, be at least fifty (50) years old (less than 50 if it can be demonstrated that enough time has passed to understand its historical importance) and satisfy at least one of the following criteria: A. Architectural Criteria: Embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. (1) Style: Describes the form of a building, such as size, structural shape and details within that form (e.g. arrangement of windows and doors, ornamentation, etc.). Building style will be evaluated as a measure of: a. The relative purity of a traditional style; b. Rarity of existence at any time in the locale; and/or current rarity although the structure reflects a once popular style; c. Traditional, vernacular and/or eclectic influences that represent a particular social milieu and period of the community; and/or the uniqueness of hybrid styles and how these styles are put together. (2) Design: Describes the architectural concept of a structure and the quality of artistic merit and craftsmanship of the individual parts. Reflects how well a particular style or combination of styles are expressed through compatibility and detailing of elements. Also, suggests degree to which the designer (e.g., carpenter-builder) accurately interpreted and conveyed the style(s). Building design will be evaluated as a measure of: a. Notable attractiveness with aesthetic appeal because of its artistic merit, details and craftsmanship (even if not necessarily unique); b. An expression of interesting details and eclecticism among carpenter-builders, although the craftsmanship and artistic quality may not be superior. (3) Architect: Describes the professional (an individual or firm) directly responsible for the building design and plans of the structure. The architect will be evaluated as a reference to: UTTU/Z[M]T20 Packet2PgF289( Item 11 13 a. A notable architect (e.g., Wright, Morgan), including architects who made significant contributions to the state or region, or an architect whose work influenced development of the city, state or nation. b. An architect who, in terms of craftsmanship, made significant contributions to San Luis Obispo (e.g., Abrahams who, according to local sources, designed the house at 810 Osos - Frank Avila's father's home - built between 1927 – 30). B. Historic Criteria (1) History – Person: Associated with the lives of persons important to local, California, or national history. Historic person will be evaluated as a measure of the degree to which a person or group was: a. Significant to the community as a public leader (e.g., mayor, congress member, etc.) or for his or her fame and outstanding recognition - locally, regionally, or nationally. b. Significant to the community as a public servant or person who made early, unique, or outstanding contributions to the community, important local affairs or institutions (e.g., council members, educators, medical professionals, clergymen, railroad officials). (2) History – Event: Associated with events that have made a significant contribution to the broad patterns of local or regional history or the cultural heritage of California or the United States. Historic event will be evaluated as a measure of: (i) A landmark, famous, or first-of-its-kind event for the city - regardless of whether the impact of the event spread beyond the city. (ii) A relatively unique, important or interesting contribution to the city (e.g., the Ah Louis Store as the center for Chinese-American cultural activities in early San Luis Obispo history). (3) History-Context: Associated with and also a prime illustration of predominant patterns of political, social, economic, cultural, medical, educational, governmental, military, industrial, or religious history. Historic context will be evaluated as a measure of the degree to which it reflects: a. Early, first, or major patterns of local history, regardless of whether the historic effects go beyond the city level, that are intimately connected with the building (e.g., County Museum). b. Secondary patterns of local history, but closely associated with the building (e.g., Park Hotel). UTTU/Z[M]T20 Packet2PgF28“6 Item 11 14 C. Integrity: Authenticity of an historical resource’s physical identity evidenced by the survival of characteristics that existed during the resource’s period of significance. Integrity will be evaluated by a measure of: (1) Whether or not a structure occupies its original site and/or whether or not the original foundation has been changed, if known. (2) The degree to which the structure has maintained enough of its historic character or appearance to be recognizable as an historic resource and to convey the reason(s) for its significance. (3) The degree to which the resource has retained its design, setting, materials, workmanship, feeling and association. 14.01.080 Historic District Designation, Purpose and Application A. Historic (H) District designation. All properties within historic districts shall be designated by an “H” zoning. Properties zoned “H” shall be subject to the provisions and standards as provided in Ordinance 17.54 (Zoning) of the Municipal Code. B. Purposes of Historic Districts. The purposes of historic districts and H zone designation are to: (1) Implement cultural resource preservation policies of the General Plan, the preservation provisions of adopted area plans, the Historic Preservation and Archaeological Resource Preservation Program Guidelines, and (2) Identify and preserve definable, unified geographical entities that possess a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development; (3) Implement historic preservation provisions of adopted area and neighborhood improvement plans; (4) Enhance and preserve the setting of historic resources so that surrounding land uses and structures do not detract from the historic or architectural integrity of designated historic resources and districts; and (5) Promote the public understanding and appreciation of historic resources. C. Eligibility for incentives. Properties zoned as Historic Preservation (H) shall be eligible for preservation incentive and benefit programs as established herein, in the Guidelines and other local, state and federal programs. UTTU/Z[M]T20 Packet2PgF28“7 Item 11 City of San Luis Obispo Architectural Character Citywide Historic Context Statement HISTORIC RESOURCES GROUP 147 SPANISH COLONIAL REVIVAL Enormously popular in Southern California from the late 1910s through the late 1930s, the Spanish Colonial Revival style emerged from a conscious effort by architects to emulate older Spanish architectural traditions, and break with Eastern colonial influences. At the peak of its popularity, design features of other regions of the Mediterranean were often creatively incorporated, including those of Italy, France, and North Africa. The result was a pan-Mediterranean mélange of eclectic variations on Spanish Revival styles. Character-defining features include:  Asymmetrical facade  Red clay tile hip or side-gable roof, or flat roof with a tile-clad parapet  Stucco exterior cladding, forming uninterrupted wall planes  Wood-frame casement or double-hung windows, typically with divided lights  Arched colonnades, window or door openings  Decorative grilles of wood, wrought iron, or plaster  Balconies, patios or towers  Decorative terra cotta or tile work  M.F. Avila House, 1443 Osos Street. Source: Historic Resources Group. Division of Highways District 5 Office, 50 Higuera Street, 1931. Source: City of San Luis Obispo. U.S. Post Office, 893 Marsh Street, 1925. Source: Historic Resources Group.Mission College Prep Catholic High School, Palm & Broad Streets. Source: Historic Resources Group. ATTACHMENT 5 Packet Pg. 362 Item 11 Meeting Date: 9/18/2018 FROM: Daryl Grigsby, Public Works Director SUBJECT: RESOLUTION OPPOSING STATE PROPOSITION 6 TO REPEAL THE GAS TAX INCREASE, THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 AS APPROVED IN SB 1 BY THE STATE LEGISLATURE RECOMMENDATION Adopt a resolution opposing Proposition 6 (Attachment A) on the State of California November ballot (Attachment B) to support ongoing allocation of state funds to maintain and repair state, county, and city transportation infrastructure, and to include the City of San Luis Obispo as a listed member of the Coalition to Protect Local Transportation Improvements. DISCUSSION For many years, the League of California Cities, California State Association of Counties and other state and regional governmental bodies documented the need for local investments in state, county and city roadways. This work culminated in the Local Roads Needs Assessment published by those organizations. After extensive discussion of the documented funding shortfall to address transportation needs, on April 6, 2017 the State Legislature approved the Road Repair and Accountability Act (SB 1). This legislation provided $5.2 billion per year for repair and maintenance of roads, freeways, bridges, and other transportation infrastructure in California. Specifically, SB 1 provides critical transportation funding to the State, counties and cities in the following categories. Also noted in the chart below are the specific benefits to the City of San Luis Obispo. Investment Category Benefits to the City of San Luis Obispo 1. Local and Regional Allocation (cities) $1.055 M annually beginning 2020, $318 K in Year 1 and $844 K in Year 2 2. Local and Regional Allocation (counties) SLO County $7.1 M annually, potentially impacting corridors connected to SLO or utilized by SLO city residents in the County 3. Transit and Intercity Rail Capital Program Regional annual allocations to SLO Transit $38 k 4. Bicycle and Pedestrian Access Improvements Competitive grants for which SLO could compete 5. Congested Corridors Program Competit ive grants for which SLO could compete 6. SLOCOG Regional Highway Improvements $1.1 M for the SLOCOG region, primarily highway congestion and interchange projects 7. Caltrans Statewide System Maintenance District 5 receives allocations for maintenance projects on state roads and freeways in the region Packet Pg. 363 Item 12 In the 1st and 2nd Year of the SB 1 allocations to the City of San Luis Obispo, those funds have been programed to the following projects. Year 1 (Fiscal Year 2017-18), $318 K 1. Safe Routes to School - Foothill and Ferrini Signalized crossing 2. Broad Street Bike Boulevard safety improvements Year 2 (Fiscal Year 2018-19), $834 K 1. Concrete Paver Sidewalk repair in the Railroad District 2. El Capitan Bridge replacement 3. Broad Street Bike Boulevard safety improvements Annually thereafter, $1.055 M of SB 1 funding will be available to address ongoing needs such as: 1. Neighborhood street paving projects 2. Traffic Safety projects 3. Bridge maintenance projects 4. Complete Streets projects In addition, SLO Transit received $38,821 as reported in the last State Controller’s Office Report , for ongoing transit operations. A critical component of the SB 1 Funding are detailed accountability provisions. There are two primary components of accountability. First, funding must be programmed to eligible transportation projects. These projects must be submitted each year to the California Transportation Commission (CTC) for review. The project list submitted by each agency must include the following: • Project Description • Project Location • Proposed Schedule for Completion • Estimated Useful Life • Complete Streets and Climate Change considerations Packet Pg. 364 Item 12 The second accountability provision is the requirement that prohibits ‘supplanting’ of funding. ‘Supplanting ’ is when an agency receives new revenue for a category of projects and then reduces their prior year local fund ing contributions to that category of projects by the approximate amount of the new revenue. The result of this practice results in no new net investment in that category of projects. SB 1 t herefore contains a ‘Maintenance of Effort’ (MOE) standard. The State Auditor established the City of San Luis Obispo’s MOE last year after reviewing prior year investments in transportation maintenance. The City, and all other agencies, cannot reduce the MOE threshold, i.e., our ongoing local contributions to transportation maintenance, as established by the State Auditor. Currently and projected into the future, the City will be meeting its current MOE as established by the State Auditor. Council opposition to the repeal of SB 1 is based on the following: 1. Fulfilling the Council and public priority on maintaining the existing transportation infrastructure. 2. Fulfilling #71 in the 2018 City Council Legislative Platform (Attachment C): ‘Supporting increased availability of grant funding to replacing aging infrastructure of all types, e.g., streets, bridges, water, sewer, parks and storm water systems, etc.’ 3. Supporting the City’s priority of completing critical projects in the City’s Annual Traffic Safety Report ENVIRONMENTAL REVIEW Passing a resolution in support of repealing the Gas Tax increase is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines Section 15378 (Definitions – Project) FISCAL IMPACT Repeal of SB 1 as proposed by Proposition 6 would reduce annual revenue to the City to support transportation maintenance efforts by $1 million each year. It would also reduce revenue to SLO Transit and reduce funds available for state and regional transportation grants. ALTERNATIVE Council could determine to take no position of Proposition 6 or take a position to support Proposition 6. This action is not recommended since SB 1 funding helps fill a critical gap to both City and Regional funding to address transportation needs. Attachments: a - Proposition 6 language b - SB 1 resolution c - 2018 Legislative Platform Packet Pg. 365 Item 12 Proposition 6 Eliminates Recently Enacted Road Repair and Transportation Funding by Repealing Revenues Dedicated for Those Purposes. Requires Any Measure to Enact Certain Vehicle Fuel Taxes and Vehicle Fees Be Submitted to and Approved by the Electorate. Initiative Constitutional Amendment. Yes/No Statement A YES vote on this measure means: Fuel and vehicle taxes recently passed by the Legislature would be eliminated, which would reduce funding for highway and road maintenance and repairs, as well as transit programs. The Legislature would be required to get a majority of voters to approve new or increased state fuel and vehicle taxes in the future. A NO vote on this measure means: Fuel and vehicle taxes recently passed by the Legislature would continue to be in effect and pay for highway and road maintenance and repairs, as well as transit programs. The Legislature would continue not to need voter approval for new or increased state fuel and vehicle taxes in the future. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact • Reduced ongoing state revenues of $5.1 billion from the elimination of fuel and vehicle taxes passed by the Legislature in 2017. These revenues mainly would have paid for highway and road maintenance and repairs, as well as transit programs. • The requirement that voters approve new or increased fuel and vehicle taxes passed by the Legislature in the future could result in lower revenues from such taxes than otherwise would have been available. Ballot Label Fiscal Impact: Reduced ongoing revenues of $5.1 billion from state fuel and vehicle taxes that mainly would have paid for highway and road maintenance and repairs, as well as transit programs. Packet Pg. 366 Item 12 BACKGROUND Approval of State Taxes Legislative Requirements. Under the State Constitution, the Legislature can only pass a new tax or increase an existing tax with a two-thirds vote. (The Legislature can pass most other types of laws with a simple majority.) Some state charges referred to as fees (such as vehicle license fees) fall under the constitutional definition of a tax. Voter Approval Requirements. The Legislature does not need to get voter approval for new or increased taxes that it passes. The voters—through the initiative process—can pass new taxes or increase existing taxes without the Legislature’s involvement. State Fuel and Vehicle Taxes Fuel Taxes. The state charges excise taxes on gasoline and diesel fuel. These taxes are set on a per-gallon basis. The state also charges sales taxes on gasoline and diesel fuel. These taxes are set as a percent of the price of the fuel. The State Constitution generally requires that the revenues from these fuel taxes be spent on highways, roads, and transit. Vehicle Taxes. State law requires vehicle owners to pay two specific taxes for the privilege of operating a vehicle on public highways. These are (1) vehicle license fees and (2) recently enacted transportation improvement fees, both of which are based on a vehicle’s value. The State Constitution requires that the transportation improvement fee revenues be spent on highways, roads, and transit. Transportation Funding in California Transportation funding in California currently is estimated to total $35 billion. Of this amount, $16 billion comes from local sources, $12 billion from state sources, and $7 billion from federal sources. Local funding mainly comes from sales taxes, transit fares, and city and county Packet Pg. 367 Item 12 general funds, while federal funding mainly comes from federal fuel taxes. State funding mainly comes from state fuel and vehicle taxes. State funding has increased by about three-quarters over the last two years mainly due to recent legislation. Recent State Transportation Funding Legislation. In 2017, the Legislature enacted Senate Bill (SB) 1 to increase annual state funding for transportation through various fuel and vehicle taxes (shown in Figure 1). Specifically, SB 1 increased the base gasoline excise tax (by 12 cents per gallon) and the diesel sales tax (by 4 percent). It also set fixed rates on a second (add-on) gasoline excise tax and the diesel excise tax, both of which previously could change each year based on fuel prices. Further, SB 1 created the transportation improvement fee (which ranges from $25 to $175 per year) and a fee specifically for zero-emission vehicles (set at $100 per year for model years 2020 and later). It also provides for inflation adjustments in the future. This fiscal year, the state expects the taxes to raise $4.4 billion. Two years from now, when all the taxes are in effect and the inflation adjustments have started, the state expects the taxes to raise $5.1 billion. The State Constitution requires that nearly all of these new revenues be spent on transportation purposes. Senate Bill 1 dedicates about two-thirds of the revenues to highway and road repairs, with the remainder going to other programs (such as for mass transit). Packet Pg. 368 Item 12 PROPOSAL Requires Legislature to Get Voter Approval for Fuel and Vehicle Taxes. Proposition 6 amends the State Constitution to require the Legislature to get voter approval for new or increased taxes on the sale, storage, use, or consumption of gasoline or diesel fuel, as well as for taxes paid for the privilege of operating a vehicle on public highways. Thus, the Legislature would need voter approval for such taxes as gasoline and diesel excise and sales taxes, vehicle license fees, and transportation improvement fees. Eliminates Recently Enacted Fuel and Vehicle Taxes. Proposition 6 also eliminates any such fuel and vehicle taxes passed by the Legislature after January 1, 2017 and up to the date that Proposition 6 takes effect in December. This would eliminate the increased fuel taxes and the transportation improvement fees enacted by SB 1. Packet Pg. 369 Item 12 Fiscal Effects Eliminates Tax Revenues From SB 1. In the current fiscal year, Proposition 6 would reduce SB 1 tax revenues from $4.4 billion to $2 billion—a $2.4 billion decrease. (The $2 billion in remaining revenues would be from taxes collected prior to Proposition 6 taking effect in December.) Two years from now, the revenue reduction would total $5.1 billion annually. The funding reductions would mainly affect highway and road maintenance and repair programs, as well as transit programs. Makes Passage of Specified Fuel and Vehicle Taxes More Difficult. Proposition 6 would make it more difficult to enact specified fuel and vehicle taxes because voters also would have to approve them. As a result, there could be less revenue than otherwise would be the case. Any reduction in revenues is unknown, as it would depend on future actions by the Legislature and voters. Packet Pg. 370 Item 12 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, OPPOSING PROPOSITION 6 – SB 1 REPEAL WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transport ation network; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment, which provides critical analysis and information on the local transportation network’s condition and funding needs, indicates that the condition of the lo cal transportation network is deteriorating at an increasing rate; and WHEREAS, cities and counties are facing a funding shortfall of $73 billion over the next 10-years to repair and maintain in a good condition the local streets and roads system and the State Highway System has $57 million worth of deferred maintenance; and WHEREAS, SB 1 – the Road Repair and Accountability Act of 2017 – will raise approximately $5.4 billion annually in long-term, dedicated transportation funding to rehabilitate and maintain local streets, roads, and highways, make critical, life -saving safety improvements, repair and replace aging bridges and culverts, reduce congestion and increase mobility options including bicycle and pedestrian facilities with the revenues split equally between state and local projects; and WHEREAS, SB 1 provides critically-needed funding in the City of San Luis Obispo that will be used for: • Traffic Safety Projects Paving projects in neighborhood streets; • Projects to enhance bicycle and pedestrian safety in City’s transportation network ; and • Bridge Repair projects. WHEREAS, SB 1 contains strong accountability and transparency provisions to ensure the public knows how their tax dollars are being invested and the corre sponding benefits to their community including annual project lists that identify planned investments and annual expenditure reports that detail multi-year and completed projects; and WHEREAS, SB 1 requires the State to cut bureaucratic redundancies and r ed tape to ensure transportation funds are spent efficiently and effectively, and also establishes the independent office of Transportation Inspector General to perform audits, improve efficiency and increase transparency; and Packet Pg. 371 Item 12 Resolution No. _____ (2018 Series) Page 2 R ______ WHEREAS, there is a proposed ballot measure aimed for the November 2018 ballot (Attorney General #17-0033) that would repeal the new transportation revenues provided by SB 1 and make it more difficult to increase funding for state and local transportation improvements in the future; and WHEREAS, this proposed November proposition would eliminate $1.055 million annually dedicated to the City of San Luis Obispo, reduce funding for local transit operations, reduce the pool of state funding for competitive regional and Active Transportat ion projects, and halt critical investments in future transportation improvement projects in our community. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the City of San Luis Obispo hereby opposes the Proposition 6 (Attorney General #17-0033) that would repeal the new transportation funds and make it more difficult to raise state and local transportation funds in the future; and ; that the City of San Luis Obispo supports and can be listed as a member of the Coalition to Protect Local Transportation Improvements, a diverse coalition of local government, business, labor, transportation and other organizations throughout the state, in opposition to the repeal of SB 1. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: Packet Pg. 372 Item 12 Resolution No. _____ (2018 Series) Page 3 R ______ _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 373 Item 12 RESOLUTION NO. 10873 (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ESTABLISHING THE CITY LEGISLATIVE ACTION PLATFORM FOR 2018 AND APPOINTING THE COUNCIL MEMBER AND STAFF PERSON TO ACT AS LIAISON BETWEEN THE CITY OF SAN LUIS OBISPO AND THE LEAGUE OF CALIFORNIA CITIES WHEREAS, a major objective of the City Council is to adopt an aggressive legislative action platform which strengthens local government, promotes City goals and defends the City against legislative actions by State and Federal governments that would weaken local government and/or take away traditional revenue sources; and WHEREAS, it is vital to the fiscal health and the self determination of the City to effectively communicate with State Legislators and Federal representatives in order to favorably influence State and Federal legislation, regulations and grant requests; and WHEREAS, the League of California Cities conducts a legislative analysis and advocacy program on behalf of cities for State issues and major Federal issues; and WHEREAS, the City desires to be proactive and involved in the governmental decision- making processes directly affecting the City legislative priorities identified in Exhibit "A," and other selected issues as may from time to time be recommended by the League of California Cities; and WHEREAS, a key component of the City's Legislative Action Platform is face-to-face meetings between City representatives and elected officials at the Federal, State, and County levels, and coordination with similar efforts made by other local government entities. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo does hereby: SECTION 1. Establish the Legislative Action Platform for 2018 as set forth in the attached Exhibit "A" and authorize the Mayor and designated staff to take positions on legislation generally consistent with the Legislative Action Platform and such other resolutions and recommendations of the League of California Cities as may be from time to time presented to the City; and R 10873 Packet Pg. 374 Item 12 Resolution No. 10873 (2018 Series) Page 2 SECTION 2. Appoint Mayor Heidi Harmon to act as Council Member legislative liaison and City Manager Derek Johnson and City Attorney Christine Dietrick to act as staff legislative liaisons with the League of California Cities. Upon motion of Council Member Rivoire, seconded by Vice Mayor Christianson, and on the following vote: AYES: Council Members Gomez, Pease and Rivoire, Vice Mayor Christianson and Mayor Harmon NOES: None ABSENT: None The foregoing resolution was adopted this 6th day of March 2018. ATTEST: 4Caetallagher City Clerk APPROVED AS TO FORM: City Attorney 14-, - XVI_, - - ay r Heidi Harmo V IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 2Z day of , 201 <? Carrie Gallagher City Clerk R 10873 Packet Pg. 375 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A CITY OF SAN LUIS OBISPO LEGISLATIVE ACTION PLATFORM FOR 2 018 Community Development 1. Promoting reforms of the entire State mandated HCD Regional Housing Need Allocations process to recognize local resource limitations. 2. Providing funding (i.e. through Cap and Trade or other sources) for communities to pay for public infrastructure that meet mandated greenhouse reduction goals. 3. Providing funding to implement programs and related action items contained in Climate Action Plans to quantitatively reduce greenhouse gases. 4. Providing communities broad authority to form and administer Community Choice Energy programs. 5. Promoting funding for the transition to clean technologies and low or zero -carbon energy. 6. Promoting funding sources to accomplish retrofitting of unreinforced masonry buildings. 7. Promoting funding of on -campus housing at Cal Poly for student and faculty housing and University acquisition of single family residences for staff and faculty housing. 8. Preserving local control of planning and zoning matters. 9. Supporting efforts to increase funding for affordable housing and supportive housing services for very low, low and moderate income individuals and/or families for all cities and communities and opposing the erosion of local inclusionary housing and in -lieu fee programs. 10. Supporting continued funding of National Housing Trust Fund and streamlined and efficient implementing regulations at the state level. 11. Promoting additional state funding to implement AB 32 (The California Global Warming Solutions Act of 2006) and SB 375 (The Sustainable Communities and Climate Protection Act of 2008) through local general plan updates that implement the regional sustainable communities plan and alternative planning strategy, if needed. 12. Promoting funding for the identification, acquisition, maintenance and restoration of historic sites and structures. Packet Pg. 376 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 13. Supporting continued or expanded funding for CDBG program. 14. Supporting reinstatement of protections from imposition of additional building or site conditions prior to issuance of a building permit for seismic related improvements to buildings subject to a mitigation program established according to state law (City URM Program) as previously provided in Government Code Section 8875.10 (this section was repealed effective January 1, 2009). 15. Supporting continued local control over mobile home park rent stabilization and the conversion of mobile home parks to other uses. Encourage the amendment of Section 66427.5 of the California Government Code and other relevant law for the purpose of ensuring that mobile home park residents are not involuntarily removed from homes or otherwise economically impacted if parks are subdivided or converted. 16. Resolving and addressing regulatory or financial barriers to implement AB 811 property -assessed clean energy districts. 17. Encouraging continued viability of inclusionary housing provisions and avoidance of conflicts with Costa -Hawkins Act. 18. Encouraging consistency in state legislation dealing with transportation, housing and land use issues and eliminating potential conflicts between regional housing requirements, smart growth mandates and environmental legislation. 19. Enabling the issuance of parking citations on private property. 20. Supporting State funding to achieve state mandated affordable housing programs and an equal and fair distribution to rural and suburban counties and cities. 21. Advocating full funding of authorized programs under the McKinney-Vento Homeless Assistance Act, including providing more flexibility in the use of Federal funds on the local level to address housing for the homeless. 22. Supporting legislation that provides funding sources for appropriate human service agencies that support the mission of the Human Relations Commission. 23. Supporting responsible review and revision of CEQA to ensure sound environmental determinations. 24. Promoting pragmatic and clarifying actions to implement Proposition 64, support for increased funding for education related to that same proposition, and the preservation of local land use decision making related to cannabis regulations. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 4 Packet Pg. 377 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 25. Supporting modern and cost-efficient, thorough and accurate methods for the population to exercise its civic obligation to be counted in the 2020 Census. Economic Develo ment 26. Promoting funding and/or legislation using tax credits or other incentive programs to encourage research and development by businesses in California. 27. Supporting funding and policies for the promotion of California as a place to locate businesses. 28. Supporting funding for the state tourism promotion program. 29. Supporting the effective and efficient use of all communications technologies including voice, video, data, and information services over wired and wireless transmission technologies. 30. Supporting telecommunications reform legislation and other measures that preserve local control over public rights-of-way, protect local resources and guarantee access to, funding for, and local flexibility in utilizing funds for public, educational and government (PEG) access television. 31. Supporting the expansion of public infrastructure financing tools and funding for infrastructure to provide economic development opportunities. 32. Promoting development of green business and head of household jobs. 33. Supporting factual analyses of impacts and associated mitigations for losses of major regional employers that provide significant head of household jobs. 34. Supporting net neutrality. Finance 35. Supporting meaningful fiscal reform that allows each level of government to adequately finance its service responsibilities while continuing to support efforts to protect the City from loss of revenues due to State take-aways and unfunded State or Federal mandates. 36. Advocating against initiatives that unduly burden and/or prohibit local government ability to support essential services to the community. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 5 Packet Pg. 378 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 37. Endorsing legislation that provides local government with a fair share tax on catalog and Internet sales; and opposing legislation that limits state or local authority to tax catalog or Internet sales. 38. Supporting efforts to collect the full amount of local transient occupancy tax from online sales of lodging. 39. Supporting the continuation of California Specialized Training Institute activities within San Luis Obispo County. 40. Opposing legislation that removes the municipal bond tax exemption. 41. Supporting local regulatory control and revenue equity for cities in statewide regulation or permitting process for marijuana establishments or uses. 1.1unian Resources/Employee Relations 42. Supporting additional workers' compensation reforms that lower employers' costs while still protecting workers and opposing legislation that would restrict appropriate cost controls in the workers' compensation system. 43. Supporting pension and retiree health benefits reform efforts, policy changes, and permissible administration decisions aimed at reducing unfunded liabilities, reducing costs, and ensuring the long-term viability of the defined benefit pension system in concert with the League of California Cities and the California Public Employees Retirement System (PERS) Board of Directors. 44. Opposing the expansion of the "Peace Officers' Bill of Rights," "Firefighters' Bill of Rights," or other attempts to curtail management rights. 45. Supporting legislation to protect the City's continued ability to administer its Cafeteria Benefit Plan and maintain comprehensive health care coverage for eligible employees, in a financially sustainable manner. 46. Supporting reforms that limit the financial impacts of joint and several liability on public entities. 47. Supporting the clarification, modification or repeal of AB 646 fact finding requirements and opposing measures that reduces local control over public employee disputes. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 6 Packet Pg. 379 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 48. Opposing the expansion of procedural rights and requirements in administrative disciplinary proceedings that increase costs and expand the timeframe and scope of administrative processes. 49. Opposing measures that impose local government mandated employee benefits that should be directly negotiated between labor groups and employers. 50. Supporting Federal legislation to modify, refine, or eliminate Federal Labor Standards Act (FLSA) requirements on public agencies. 51. Opposing legislation applying joint and several liability to agencies who have entered into Joint Powers Agreements (JPAs). Public Safety 52. Continuing State and Federal funding support for school safety, disaster preparedness, earthquake preparedness, Homeland Security, hazardous material response, State COPS program and other local law enforcement activities. 53. Preserving the City's authority to investigate police misconduct. 54. Supporting efforts to expand the scope of parental responsibility for crimes committed by minors. 55. Preserving the authority of local control on issuance of concealed weapons permits. 56. Supporting legislation to help curb alcohol-related criminal behavior and underage drinking. 57. Opposing new or increased state fees for state provided law enforcement services. 58. Supporting the fair and efficient allocation of radio spectrum that provides quality frequencies, free from interference, for all local public safety communication needs. 59. Supporting efforts to enhance radio and data system(s) stability and interoperability among public safety agencies and jurisdictions. 60. Supporting efforts to reduce retention periods for video monitoring data not related to an identified incident or operation. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 7 Packet Pg. 380 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 61. Preserving the City's right to regulate activities with adverse health and safety impacts on local streets, sidewalks and right-of-ways. 62. Supporting legislation to improve and enhance the safety of cargo transported via rail, including but not limited to: safety enhancements for rail vessel construction with an emphasis on efforts to rapidly improve the safe transport of volatile crude oil and limit the use of older, "grandfathered" containers and vessels; enhancements in remote monitoring and control of railcar speeds; reduction of railcar speeds in populated areas like San Luis Obispo; enhancements in communications, notifications and information dissemination to local governments, especially public safety agencies. 63. Supporting and expanding funding and programs to proactively reduce fire risk attributed to heavy vegetative fuels loads, high tree mortality, drought, and climate change to remove diseased, dead and/or down combustible vegetation, thin forests to improve forest health, and create effective defensible space between the undeveloped and developed environments. 64. Supporting grants and aid to land/property owners with properties one mile or less from natural vegetation, which are threatened by wind -driven fire events, to harden structures again fire impingement and create sustainable defensible spaces. 65. Supporting grants and aid to local governments to develop modern evacuation communications systems to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means. 66. Supporting legislation that would result in the implementation of a statewide modern evacuation communications system to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means, which is available for use by local governments at the discretion of local governments. 67. Supporting legislation to preserve and enhance local control, at the City level, for the provision of public safety services, including the scope and provision of medical and non-medical emergency services. 68. Supporting uniformity of state and federal regulations of drones and the study and adoption of appropriate local airport protections and public safety exemptions. 69. Supporting legislation regarding the safe transport and storage of nuclear waste. 70. Supporting legislation to address the education, funding and treatment of opioid addiction. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 8 Packet Pg. 381 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A Public Works 71. Supporting increased availability of grant funding to replace aging infrastructure of all types, e.g. streets, bridges, water, sewer, parks, and storm sewer systems, etc. 72. Supporting increased funding for projects that improve flood protection for the City. 73. Supporting funding for implementation of clean stormwater / low impact infrastructure replacement. 74. Ensuring cooperation and prompt approval from Federal and State regulatory agencies (such as the Department of Fish & Game, Regional Water Quality Control Board and the Army Corps of Engineers) for necessary projects involving the City's creek system. 75. Supporting monetary incentives or grant funding for alternative fuel vehicles for replacement of municipal fleet equipment. 76. Supporting monetary incentives or grant funding for retrofitting municipal buildings with Energy Management Systems to centrally control all lighting and HVAC systems. 77. Supporting realistic municipal clean stormwater requirements at the State Board or legislative level. 78. Supporting legislation that reduces implementation timeframe for Public Projects in a cost-effective manner. Parks and Recreation and Natural Resources 79. Supporting State and Federal funding and other measures to promote the acquisition, protection, preservation and restoration of natural resources, open space, coastal resources, signature land forms, wetlands and park development, including continued funding for the Land and Water Conservation Grant Program and for the California Conservation Corps. 80. Supporting the expansion of National Marine Sanctuary off the coast of San Luis Obispo County to protect this fragile habitat from offshore oil and gas development. 81. Opposing any development under existing or new offshore oil and gas leases off the Coast of San Luis Obispo County. 82. Supporting measures to prohibit discharge of pollutants into the ocean (e.g. selenium contaminated waters from the San Joaquin valley). LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 9 Packet Pg. 382 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 83. Encouraging the Resources Agency and its departments to expedite the distribution of remaining Proposition 1 bond funds to take advantage of the many favorable opportunities for land and easement acquisition and enhancement project contracting that exist at this time. 84. Seeking legislative exemption from property taxes on lands dedicated to open space purposes which are outside the boundaries of the jurisdiction owning such lands. 85. Protecting funding for vital regional and community services that negatively impact Californian's access to parks, open space, after school programming, senior services, facilities that promote physical activity, protect natural resources, and strengthen safety and security. 86. Promoting policies that recognize the benefits of parks and recreational facilities in the advancement of "sustainable communities" and curbing greenhouse gas emissions, including: strengthening policies that fund parks, open -space, bike lanes and non -motorized trails through the development and implementation of a carbon credit and offset program, and advocating for the strong integration of local and regional park and non -motorized transportation improvements into "Smart Growth Scenarios" pursuant to SB 375. 87. Supporting access to joint use of schools; parks and open space; development of streets and trails that encourage physical activity and healthy living. 88. Supporting extension or permanent legislation at the federal level of enhanced tax deductions for charitable donations of Conservation Easements 89. Supporting legislation to limit the opening of national parks (or other protected public lands, e.g. Carrizo Plain) to fossil fuel extraction. Transportation 90. Supporting changes in gas tax laws that allow local tax for transportation purposes based on a majority vote of the public. 91. Supporting the continuation of, and increased funding sources for street maintenance projects, transportation improvements, transit operations and multimodal facility projects. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 10 Packet Pg. 383 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 92. Supporting clean air transit funding for San Luis Obispo County, in particular fu n d i n g that provides for alternative modes of transportation with clean air benefits. 93. Supporting actions to: (1) promote cooperation and mutual support between metropolitan planning organization (MPO) agencies and local transit providers, and 2) discourage trends toward " MPO agencies/regional "control" of local transit providers. 94. Encouraging private transportation companies (such as Union Pacific Railroad) to reach agreements for sharing of properly secured right of way corridors for other compatible uses such as bicycle and pedestrian facilities. 95. Opposing the proposed diversion of any funding source for transportation that reduces amounts designated for transit operations. 96. Supporting funding for projects to implement adopted complete street plans demonstrated to improve public health and reduce greenhouse gas emissions. 97. Supporting provision of Cap and Trade funding for intercity rail. 98. Supporting increased funding for existing Active Transportation Program (ATP). 99. Preserving funding for existing and future transportation needs. Utilities 100. Supporting clean water funding programs. 101. Supporting recycling and waste diversion programs and enhancing local government's ability to comply with solid waste reduction requirements. 102. Supporting measures that require the State Water Resources Control Board and Regional Water Quality Control Boards establish a process to evaluate, in advance of adoption, the costs of compliance for pending and future regulatory actions on NPDES permittees. 103. Supporting legislation that requires the State's environmental agencies to conduct peer review of proposed regulations to ensure that the proposal is based on sound science. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 11 Packet Pg. 384 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 104. Supporting the elimination of mandatory in i n i in u m penalties for violations of NPDES Requirements and returning discretionary control to the Regional Water Quality Control Board Executive Officers (i.e. repeal SB 709). 105. Supporting measures to ensure reasonableness in the administration of NPDES permit governing City operations, including pursuing a municipal representative on the Regional Water Quality Control Board 106. Promoting the safe, responsible, and cost-effective reuse of Exceptional Quality or better biosolids. 107. Supporting any appropriate streamlining of the state regulatory processes. 108. Supporting sustainable energy programs. 109. Supporting incentives for distributed energy generation projects such as solar power. 110. Supporting legislation allowing cities/agencies to establish fees for the costs of operating mandated water quality programs such as, but not limited to, municipal storm water and total maximum daily loading. 111. Supporting federal legislative action to transfer Salinas Reservoir from Army Corps of Engineers Military Project to Army Corps of Engineers Civil Works Project. 112. Supporting the implementation of the California Urban Water Conservation Council's Best Management Practices regarding urban water conservation and compliance with AB 1420. 113. Supporting amendments to the Urban Water Management Planning Act to recognize past investment in water conservation and the City's ability to comply with SBx7-7 and other water conservation regulations. 114. Opposing legislation that requires recycled water to be included in water conservation regulations. 115. Promoting legislation that expands or encourages the expansion of recycled water production and use. 116. Supporting legislation eliminating departing load charges which discourage the use of alternative energy resources. 117. Allowing the use of Public Goods Funds for the development and installation of energy saving or green energy generating projects to benefit local government. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 12 Packet Pg. 385 Item 12 Resolution No. 10873 (2018 Series) EXHIBIT A 118. Opposing legislation that diminishes the City's existing water rights. 119. Promoting the protection of water resources. 120. Supporting the protection of our natural resources from invasive species. 121. Promoting sustainability of our water resources through the use of recycled water and other best practices. 122. Supporting regional water resiliency initiatives 123. Supporting one water initiatives. CountyIRe Tonal Priorities 124. Supporting legislation and other policy considerations to expand funding for the delivery of case management, drug, alcohol, and detoxification services, mental health services, and the establishment of shelter facilities. 125. Working with the County to assure land use practices that are consistent with the Memorandum of Agreement adopted by the City Council and County Board of Supervisors in 2016 regarding development near the edges of the City. 126. Encouraging participation by County in providing nearby parking for County employees and clients, and alternate transportation and parking demand reduction. 127. Supporting County development of a local ordinance providing additional local oversight and regulation of the land application of Pollutant Concentration (PC) or better biosolids. 128. Working cooperatively with the County to solve City/County flood problems. 129. Supporting the San Luis Obispo County Air Pollution Control District's legislative program, where consistent with the City's adopted policies and platform. 130. Supporting the San Luis Obispo Council of Governments' legislative advocacy activities, where consistent with the City's adopted policies, platform and public project objectives. 131. Supporting efforts to enhance dangerous animal regulation and enforcement. 132. Supporting the streamlining, clarification and simplification of conflict of interest regulations applicable to local officials. LEGISLATIVE ACTION PLATFORM FOR 2 018 Page 13 Packet Pg. 386 Item 12 Meeting Date: 9/18/2018 FROM: Robert Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager Xzandrea Fowler, Deputy Director, Community Development SUBJECT: CLIMATE ACTION PLAN UPDATE STATUS REPORT, GREENHOUSE GAS EMISSIONS INVENTORY UPDATE, AND DIRECTION ON GHG REDUCTION TARGETS STUDY SESSION RECOMMENDATION 1. Receive and file the 2018 provisional community greenhouse gas (GHG) emissions inventory report and presentation; and 2. Provide direction to staff regarding updated GHG targets. REPORT-IN-BRIEF Consistent with the Climate Action Major City Goal identified in the 2017 -19 Financial Plan, staff is currently updating the City’s Climate Action Plan that was adopted in 2012. This report provides a status report of the update process, an overview of the updated community GHG emissions inventory, and options for updated GHG reduction targets. DISCUSSION The California Air Resources Board’s Climate Change Scoping Plan (2017) notes that the evidence of climate change is undeniable. As the body of evidence continues to grow, the scientific record only becomes more definitive – and makes clear the need to take aggressive climate action now. In California, as in the rest of the world, climate change is contributing to an escala tion of serious problems, including wildfires, coastal erosion, disruption of water supply, threats to agriculture and natural ecosystems, spread of insect-borne diseases and invasive species, and continuing health threats from heat and air pollution. Climate change is making events like the recent droughts and the consecutive historic wildfire seasons more frequent, more catastrophic, and more costly. Climate scientists agree that global warming and other shifts in the climate system observed over the past century are caused by human activities. These recorded changes are occurring at an unprecedented rate. Determined local climate action provides an opportunity to proportionally slow the impacts of climate change, create new economic development engines, ensure environmental integrity, address issues of equity and public health, enhance local quality of life and demonstrate climate leadership with actions that can be potentially replicated in other locations. Packet Pg. 387 Item 13 Climate Action Major City Goal In June of 2017, the City Council adopted the 2017-2019 Financial Plan, which identifies Climate Action as a Major City Goal (MCG). The MCG goal statement directs staff to, “Implement the Climate Action Plan, assess requirements to achieve a “net -zero carbon City” target, and implement cost -effective measures, including implementation of a Sustainability Coordinator and formation of a Green Team.” The MCG provides fourteen tasks, most of which are associated with: 1. I mplementing GHG reduction measures (e.g., community choice energy, energy efficiency upgrades to city facilities, electric vehicle chargers, etc.); 2. Establishing capacity for continuing climate action (e.g., creation of the Sustainability Manager position and the Green Team, and signing a memorandum of underst anding with the SLO Climate Coalition Task Force); and 3. Updating the City’s Climate Action Plan (e.g., updating the City’s greenhouse gas (GHG) inventory, benchmarking energy use at City facilities, assessing the requirements to achieve a “net -zero carbon City” target, and evaluating the feasibility or relevance of existing GHG reduction measures). Climate Action Plan Update Status In July 2012, the City Council adopted by resolution the City of San Luis Obispo Climate Action Plan. The Climate Action Plan was the result of a collaborative effort between the City, Cal Poly’s City and Regional Planning Department, and community members. The C limate Action P lan serves as the City’s policy document that sets forth objectives and strategies that the City and co mmunity members can implement to achieve the adopted GHG emissions reduction target of 15 percent below 2005 baseline levels by 2020. Staff have been working on updating the City’s Climate Action Plan since April 2018. The project, which is co -managed by the Administration and the Community Development Department s, consists of three phases: 1. Phase 1) GHG inventory and target setting update for community and municipal operations 1. Phase 1, which is 90 percent complete, is reported on in the remaining sections of this report. This Study Session is focused on the community GHG emissions inventory and target. The municipal operations GHG emissions inventory update will be presented publicly when it is available and will be included as part of the updated Climate Action Plan. 2. Phase 2) Updated, actionable, and cost-effective Climate Action Plan for community and municipal operations emissions. Following this Study Session, staff will shift to Phase 2. The Study Session will inform how Phase 2 is conducted, includ ing the scope and project description that will be articulated in an RFP for Climate Action Plan support services, which is currently scheduled to be considered by Council for authorization to release at the October 16, 2018 City Council meeting. 1 In climate action planning, “community” emissions refer to the GHG emissions generated as the result of activity in a geographic area; in this case, within the City of San Luis Obispo city limits. “Municipal operations” emissions refer to the GHG emissions generated as the result of the City of San Luis Obispo conducting its operations as a n organization. Municipal operations emissions are a subset of community emissions. Packet Pg. 388 Item 13 3. Phase 3) A tool and approach to integrate climate change considerations into the biennial Financial Plan process. Phase 3 will run concurrent with the 2019-21 Financial Plan update process and will report the expected construction and operational GHG emissions of applicable projects included in the Capital Improvement Plan (CIP). Integrating climate action into the Financial Plan will allow for streamlined monitoring and reporting o f climate action implementation. It should be noted that t he recent catastrophic wildfires throughout the state have raised interest in addressing climate change adaptation among staff and the public. The 2017-19 Climate Action MCG is focused almost exclusively on GHG emissions reductions. The City is taking proactive measures to ensure community resiliency and will establish a city-wide strategic approach to climate adaptation when it updates the Safety Element of the General Plan concurrent with the Housing Element of the General Plan in Fall 2019. GHG Emissions Inventory and Target Setting Update GHG Emissions Inventory Introduction A GHG emissions inventory is an accounting and compilation of the GHG emissions that occurs as the result of activity inside a geographic boundary. The City’s first GHG inventory, created in 2009 and adopted as part of the 2012 Climate Action Plan, established 2005 as the baseline inventory year. The provisional community GHG emissions inventory update is provided as Attachment A and includes an updated estimate for the baseline year of 2005, a 2016 invent ory for comparison, and projections for future emissions in 2020, 2030, and 2050. The inventory presented at this Study Session is titled “provisional” for two reasons : 1. The GHG accounting method used to estimate emissions from the transportation sector may be refined prior to the updated Climate Action Plan adoption. The transportation method presented in Attachment A is consistent with the approach taken in the 2012 Climate Action Plan and the vehicle miles travelled (VMT) and GHG emissions estimates are accurate. However, the existing accounting method only accounts for VMT that occurs within the City limits, meaning that pass-through trips are counted, while trips induced by the City from outside areas are not. The City is currently in the process of recalibrating its traffic model, which will be able to exclude pass through trips and account for induced trips by Fall 2018. As this approach would be consistent with industry standard GHG accounting methodology, t he 2005 and 2016 inventories and subsequent forecasts may be updated accordingly. 2. Further analysis of the data as part of Climate Action Plan update may lead to refinements in the inventory, yielding slightly different numbers. The City contracted with the firm Placeworks, which has experience creating over 50 GHG inventories for local governments in California, to peer review staff’s work and complete the community inventory. It is their professional judgment, along with staff’s, that the provisional inventory is sufficient for the purpose of th is Study Session. Packet Pg. 389 Item 13 GHG Emissions Inventory Summary As noted in Table 1, which summarizes the findings of Attachment A, community GHG emissions decreased by approximately 10 percent from 2005 to 2016. This is largely the result of significant decreases in the energy sector, but also includes decreases in nearly every sector with the exception of direct emissions from wastewater processing, which are a small part of the total inventory. Notable findings include: 1. Vehicle miles travelled in the city are estimated to have increased by approximately three percent. However, due to lower carbon content of vehicle fuels and increasing fuel efficiency, transportation sector emissions decreased by six percent. 2. Residential energy dropped steeply as the result of decr eased electricity and natural gas consumption, as well as decreasing carbon intensity of electricity in Pacific Gas and Electric (PG&E) service territory. 3. Solid waste emissions decreased by approximately 11 percent due to decreasing landfilled waste and increased diversion of green waste from landfills to composting facilities. Table 1. Provisional GHG Inventory Summary Results (MTCO2e) Sector 2005 2016 Percent Change Transportation 130,210 122,920 -6% Commercial/Industrial Energy 57,800 53,410 -8% Residential Energy 55,190 43,580 -21% Solid Waste 15,540 13,880 -11% Waste Water 170 190 12% Off-Road 10,810 8,230 -24% TOTAL 269,720 242,210 -10% GHG Reduction Target Updates AB 32 Assembly Bill 32 (AB 32) (Nuñez, Chapter 488, Statutes of 2006) established a target of reducing GHG emissions to 1990 levels by 2020 with maintained and continued reductions post 2020. Given the challenge of estimating 1990 GHG emissions, standard best practice is to use 15 percent reduction of a base line year (2005) as a proxy. The City’s current adopted targets are consistent with AB 32. Using the updated 2005 baseline inventory provided in Table 1, the AB32 consistent target for annual emissions by 2020 is 229,260 MTCO 2e (Table 2 provides the annual MTCO2e figure required to achieve each target discussed in this section). SB 32 Senate Bill 32 (SB 32) (Pavley, Chapter 249, Statutes of 2016) affirms the importance of addressing climate change by codifying into statute the GHG emissions reduction target of at least 40 percent below 1990 levels by 2030. The 2030 target reflects the same science that informs the agreement reached in Paris by the 2015 Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC), aimed at keeping the global tempera ture increase below 2 degrees Celsius (̊C). Using the updated 2005 baseline inventory provided in Packet Pg. 390 Item 13 Table 1, the SB32 consistent target annual emissions by 2030 is 137,560 MTCO 2e. The City does not currently have a SB 32 consistent target. Post -2030 Target s In 2016, 174 nations and the European Union ratified a global agreement on climate change known as the “Paris Agreement ” committing to ambitious efforts to keep global average temperature rise to less than 2 ̊C above pre-industrial levels, and to pursue efforts to limit temperature rise to 1.5 ̊C. 2 ̊C is the warming threshold at which scientists agree there will likely be major irreversible catastrophic climate disruptions. The Paris Agreement target, which is consistent with California’s long-term climate targets, are operationalized as an 80 percent decrease in emissions from 1990 levels by 2050 . Using the updated 2005 baseline inventory provided in Table 1, the Paris Agreement consistent target for annual emissions by 2050 is 45,850 MTCO2e. Table 2. GHG Target Summary Target Annual GHG Emissions Target (MTCO2e) 2005 Baseline Emissions 269,720 AB32 – 1990 levels (15 percent below baseline) by 2020 229,260 SB 32 – 40 percent below 1990 levels by 2030 137,560 Paris Agreement – 80 percent below 1990 levels by 2050 45,850 The City Council may consider the “80 percent below 1990 by 2050” emissions target to ensure the City does it ’s “fair share” in keeping global warming below 2 ̊C. Alternately, City Council may consider more aggressive targets (in terms of reduction, timeframe, or both) as there are important differences in the level of impacts that are anticipated to occur between keeping temperature rise to 1.5 ̊C compared to 2 ̊C, and there is also value to ensuring the City’s leadership has t ime to influence other cities in the central coast region and throughout the country. Over 60 cities throughout the world have adopted post -2030 GHG reduction targets and climate action plans that set a trajectory to achieve those targets. Examples of other North American cities that have adopted post -2030 targets include: 1. City of Davis, CA: Carbon neutral by 2050 2. City of Fort Collins, CO: 80 percent below 2005 by 2030, carbon neutral by 2050 3. City of Iowa City, IA: 80 percent below 2005 by 2050 4. City of Santa Monica, CA: Carbon neutral by 2050 5. City of Berkeley, CA: 80 percent below 2000 by 2050 6. City of Los Angeles, CA: Carbon neutral by 2050 7. City of San Francisco , CA: Carbon neutral by 2050 Packet Pg. 391 Item 13 8. City of Austin, TX: Climate neutrality for municipal operations by 2020, carbon neutral by 2050 9. City of Portland, OR: 80 percent below baseline by 2050 10. City of Vancouver (Canada): 80 percent below baseline by 2050 11. City of Minneapolis, MN: 80 percent below baseline by 2050 Assessment of A Net Zero Carbon City As illust rated by the community GHG inventory, despite the hard work of the City, residents, businesses, and organizations, overall emissions have decreased approximately ten percent since the baseline year of 2005. This means the community will need to reduce another five percent to achieve the adopted 2020 target. In this context, a 2030 target of 40 percent below 1990 levels (SB 32), and more aggressive voluntary targets required to keep global warming 2 ̊C, represent significant undertaking of both policy and investments. State legislation (AB 32 and SB 32) focused on reducing GHG emissions provides authority to the California Air Resources Board to develop the strategy for achieving the state’s targets via the Climate Change Scoping Plan (Scoping Plan). The Sc oping Plan provides an approach to achieve the 2030 targets, while stressing the importance of those targets putting the state on a trajectory to the goal of reducing emissions 80 percent under 1990 levels by 2050. Faced with the incredibly challenging, but essential, task of achieving these deep reductions in greenhouse gas emissions, the State of California has commissioned numerous studies outlining potential paths. Most recently, the California Energy Commission (CEC) released the report, Deep Decarbonization in a High Renewables Future (2018) to describe the most cost -effective approach to reaching the state’s 2030 and 2050 targets. Consistent with numerous other reports studying approaches to achieving deep GHG reduction targets, the CEC report provides four pillars for community decarbonization: 1) energy efficiency and energy conservation, 2) low- carbon fuels, 3) electrification of technology that currently runs on fossil fuels, and 4) a reduction in non-combustion GHGs (e.g., methane generated from decomposing solid waste). Based on these pillars, and supported by additional staff research, staff presents the following principles required to achieve a deep GHG reduction target in the City of San Luis Obispo : 1. Resource Efficiency and Conservation - A commitment to conservation in a net zero community means using as little external energy as possible (e.g., a commitment to walking, biking, and transit, turning lights off when not in use, replacing lawns with drought tolerant landscaping, etc.). A commitment to efficiency means that when an activity requires consumption of energy, water, or other resources, as little is used as possible (e.g., highly efficient buildings, drip irrigation, efficient lighting, fuel efficient vehicles, etc.). 2. Carbon Free Electricity - A commitment to low or zero carbon fuels primarily means a commitment and switch to carbon free renewable electricity (e.g., solar and wind power). Packet Pg. 392 Item 13 3. Electrification – Due to advances in technology, electricity can power highly efficient space heating, space cooling, water heating, and cooking appliances, as well as a significant portion of the transportation sector. This switch to electricity would replace emissions from carbon- based fuels (e.g., natural gas, gasoline, diesel, etc.). 4. Reduced Solid Waste – As waste decomposes in a landfill, it creates methane, which is a powerful greenhouse gas2. At Cold Canyon landfill, where nearly all of the City’s waste is deposited, most of the methane is capture and burned for electricity. However, some of the methane escapes directly to the atmosphere. A move to near-zero waste would reduce this emissions sector and would also indirectly resolve lifecycle emissions issues associated with packaging, plastics, and other harmful wastes. 5. Carbon Sequestration – The City’s Open Space and Urban Forest provide a valuable resource. The City’s Greenbelt serves as a constraint on sprawl and can be actively managed to sequester carbon. Additionally, the City’s Urban Forest serves as another valuable carbon sink that also enhances private property values and provides important shading and cooling benefits. Finally, the City’s existing support to limit fossil fuel extraction locally and to divest from fossil fuel investments underscores the importance of keeping fossil f uel stores in the ground. In addition to the technical requirements to achieve a “net zero City” listed above, staff also identified important qualitative principles for how these actions are implemented. First, a successful approach prioritizes commitment s to innovation, leadership, learning, and sharing. Second, a successful approach makes a commitment to seeing opportunity in the community’s challenges, so that climate action isn’t something that is done instead of other key work, but rather is integrated into organizational, financial and the decision making culture. Third, a successful approach makes a commitment to considering equity and economy in every decision. Taken together, these principles ensure that climate action can be a powerful change agent for economic development, equity, and enhancing quality of life in the city. Timing Considerations Identifying the Council’s direction for long term GHG reduction targets allows staff to properly articulate those targets and provide the appropriate scope of work in the request for proposals (RFP) for the Climate Action Plan update, which will come before this Council for approval at the October 16, 2018 meeting. 2 Methane is roughly 28 times more potent as a heat -trapping gas than CO2. Packet Pg. 393 Item 13 FOCUS QUESTION FOR STUDY SESSION Focus Questions for Study Session 1. Do es Council want to establish a GHG target consistent with SB32 (40 percent below 1990 levels by 2030)? 2. If so, do es Council want to: a) formally establish the target via resolution this year, or b) direct staff to adopt the target upon completion of the Climate Action Plan update (Summer 2019)? 3. Do es Council want to establish a GHG target beyond SB32? 4. If so, does Council want the target to be consistent with California’s Executive Orders and the Paris Agreement (80 percent below 1990 by 2050)? 5. Or, do es Council want to move beyond the low-end requirements identified in the Paris agreement moving the target date earlier, increasing the reduction requirement, or both? 6. If an addition target is desired, does Council want to:a) formally establish the target via resolution this year, or b) direct staff to adopt the target upon completion of the Climate Action Plan update (Summer 2019)? CONCURRENCES Staff from the Community Development Department concurs with this report . ENVIRONMENTAL REVIEW The stud y session does not constitute a Project under CEQA. The updated Climate Action Plan and associated implementing actions will require CEQA review. FISCAL IMPACT The discussion requested as part of this study session does not have any fiscal impact. The Climate Action Plan update RFP scope and project description will be amended based on the discussion held during this study session, but this will not affect the anticipated project budget of $100,000, which was included with the Climate Action Major City Go al 2017-19 and the Administration Department’s operating budget. Attachments: a - DELETE OLD - City of San Luis Obispo Provisional 2018 Community GHG Technical Report Packet Pg. 394 Item 13 Meeting Date: 9/18/2018 FROM: Robert Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager SUBJECT: PUBLIC HEARING – COMMUNITY CHOICE ENERGY TECHNICAL STUDY, APPROVAL OF JPA AGREEMENT AND RESOLUTION, AND FIRST READING OF COMMUNITY CHOICE ENERGY ORDINANCE RECOMMENDATION 1. Receive the CCE Technical Study (Attachment A) and presentation; and 2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, authorizing the implementation of a community choice aggregation program” (Attachment B); and 3. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the joint powers agreement establishing Central Coast Community E nergy on behalf of the City of San Luis Obispo” (Attachment C); and 4. Appoint two Council members to serve as the City’s representatives on Central Coast Community Energy’s Board of Directors; and 5. Direct staff to continue to support Central Coast Community Energy implementation and program launch until such time that the new agency has hired staff and transitioned to an operational, independent agency. REPORT-IN-BRIEF This report provides an overview and high-level explanation of Community Choice Energy (CCE, also known as Community Choice Aggregation), as well as a summary of City Council direction and work completed to date. This meeting provides City Council an opportunity to introduce an implementing ordinance and adopt a resolution to establish a CCE program. If Council decides to proceed, it will need to approve two documents: 1) the implementing CCE Ordinance; and 2) a Resolution approving a Joint Exercise of Powers Agreement which contractually creates the Joint Powers Authority (JPA) that would host and operat e the CCE program. This report describes and provides four attachments to assist with City Council’s decision: 1) the Technical Study assessing program feasibility (Attachment A), 2) the proposed CCE implementing Ordinance (Attachment B), 3) the proposed JPA Agreement (Attachment C), and 4) the proposed JPA resolution (Attachment D). The attachments reflect comments compiled from the September 4, 2018 CCE Council Study Session. Packet Pg. 395 Item 14 DISCUSSION Background About Community Choice Energy CCE, authorized by Assembly Bill 117, is a state law that allows cities, counties and other authorized entities to aggregate electricity demand within their jurisdictions to purchase and/or generate electricity supplies for residents and businesses within their jurisdiction w hile maintaining the existing electricity provider for physical transmission and distribution services. CCEs are typically created to provide a higher percentage of renewable energy electricity, such as wind and solar, at competitive and potentially cheaper rates than existing investor owned utilities, while giving consumers local choices and promoting the development of renewable power sources and local economic development. The City Council has been supportive of the research and development of a viable r egional Community Choice Energy (CCE) program for the City of San Luis Obispo and surrounding communities for the last several years. Previous Council Direction In December of 2013, City staff presented the City Council with a detailed report to educate t he Council and Community about Community Choice Energy (CCE). In March of 2015, the City Council approved Resolution No. 10609 confirming the City of San Luis Obispo’s participation in the exploration of CCE. The Resolution authorized participation in an inter-jurisdictional investigation into CCE feasibility allowing execution of appropriate documents to allow technical consultants to acquire energy usage load data from the electric distribution utility for analysis in a feasibility study. In June of 2017, the City Council adopted the 2017-2019 Financial Plan, which identifies Climate Action as a Major City Goal. The goal includes the following objective: “Assess and report the requirements to achieve the ’net -zero carbon City’ target including feasibility analysis and implementation of a Community Choice Energy program.” Should the City Council decide to move forward with implementation, these actions would surpass the goals and outcomes anticipated in the Major City Goal work program and thus Council would need to be cognizant of the limited resources moving forward to take on other climate related actions. Given the GHG reduction potential of taking this action, staff recommends that this is a worthwhile tradeoff and embodies the principle of focusing sustainability resources on actions that have the highest potential to reduce GHG emissions. In December of 2017, the City Council reviewed results of CCE feasibility studies and held a study session reviewing CCE options. The two CCE feasibility studies (o ne study assessing the feasibility of a program in the counties of Santa Barbara, Ventura, and San Luis Obispo, the other assessing the feasibility of a program including the City and County of San Luis Obispo) provided a range of results, but across the studies, staff interpreted the results to confirm that a CCE program in PG&E service territory could be feasible. As a result, City Council provided staff direction to “pursue forming a new CCE, in conjunction with other interested jurisdictions in San Luis Obispo County and/or in PG&E territory of Santa Barbara County. If that option is not feasible, then staff should pursue joining an existing CCE such as Monterey Bay Clean Packet Pg. 396 Item 14 Power or other comparable alternatives.” In January of 2018, Mayor Harmon sent letters to the County of San Luis Obispo and the Cities of Paso Robles, Atascadero, Morro Bay, Grover Beach, Pismo Beach, and Arroyo Grande. On April 24, 2018, Morro Bay City Council committed to pursuing CCE program formation with the City of San Luis Obispo . In February of 2018, the California Public Utilities Commission (CPUC) issued Resolution E - 4907, which requires new CCE programs to have one full calendar year elapse prior to serving customers. This issue has altered timing considerations and presents the following timelines: 1. If an Implementation Plan is submitted by January 1, 2019, customers can begin service on January 1, 2020 2. If an Implementation Plan is submitted after January 1, 2019, but before January 1, 2020, customers can begin service on Ja nuary 1, 2021 Since March of 2018, staff have met with representatives from operational CCE programs, trade groups, service providers, local experts, and the SLO Climate Coalition Task Force to vet potential approaches and understand timing and cost issue s for each. The City’s preferred approach is to operate the program through a JPA with Morro Bay with the intention of inviting other regional jurisdictions to participate in future years. In May of 2018, the City Council authorized the release of an RFP for a technical and energy services vendor to refresh feasibility assessment assumptions, draft the CPUC required Implementation Plan, provide credit solutions to financing initial power purchases, and provide power procurement -related operational services (e.g., purchasing power on the City’s behalf, interacting with the California Independent System Operator (CAISO), assisting with regulatory findings, etc.). After an extended review process, the City selected The Energy Authority (TEA) as it’s technical and energy service provider. As a requirement of the RFP, TEA agreed to defer incurred costs for all technical work until the program becomes operational in 2020. If the City Council chooses not to proceed with Community Choice Energy at th is time, the Cit y may withdraw from the contract at no cost. Additionally, the negotiated agreement with TEA allows for the full transfer of all contractual liabilities and obligations from the City to the JPA to host the CCE. Under a scenario where the City continues working with TEA to form a single jurisdiction CCE program (instead of the recommended multi-jurisdiction JPA program) and that program fails to launch, the City would be responsible for up to $250,000 in deferred costs to TEA. As a matter of responsible fina ncial planning, staff will propose reserving carryover funds from the 2017-18 budget should the City unexpectedly need to accommodate this contingent liability. On September 4 of 2018, the City Council held a study session to review initial results from the draft Technical Study assessing the feasibility of a CCE program to provide GHG benefits and rate competitiveness, while being a fiscally healthy organization. At the meeting, City Council provided staff with feedback on the individual components of the program, including the draft implementing ordinance, the draft joint powers authority agreement, the draft resolution creating the JPA on the City’s behalf. Council discussion included questions and feedback on the process Packet Pg. 397 Item 14 for other regional partners to join the program, potential for joining an existing program, creation of advisory bodies, and community involvement. Additional discussion touched on the initial Directors from the City Council for the CCE program’s Board of Directors, which is included as part of the recommendation herein. CCE Technical Study The Technical Study provided by TEA evaluates the feasibility of implementing a CCE program in three groupings of the Cities of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach. The finding s presented in this Council Agenda Report focus exclusively on the participation scenario that includes the cities of San Luis Obispo and Morro Bay. The Technical Study evaluates three power supply scenarios. Each scenario contains a different amount of California Renewable Portfolio Standard (RPS) compliant power. RPS compliant power includes power sources such as solar, wind, small-hydroelectric, and bio-mass. Additional power sources exist that do not generate GHG emissions but are not legally defined a s “renewable” in California (e.g., large hydroelectric and nuclear). The Technical Study’s financial pro forma assumes each scenario is 100 percent greenhouse-gas (GHG) free. TEA concludes that under base-case market and regulatory conditions, all three presented supply scenarios would be feasible while offering customers a rate-discount relative to PG&E. Table 1 shows cumulative net revenues in the third year of operations as a total and as a percent of annual operating expenses assuming the CCA offers a 3% rate discount relative to PG&E. The Technical Study is provided as Attachment A. Table 1. Draft Technical Study Summary Findings Metric Supply Scenario 1 Supply Scenario 2 Supply Scenario 3 Renewable Portfolio Standard Percentage RPS-Compliant 50% 75% GHG Free Percentage 100% 100% 100% Average Rate Savings 3% 3% 3% Cumulative Net Revenues at End of Year 3 $12.3 million $11.3 million $9.7 million Cumulative Net Revenues at End of Year 3 as a Percentage of Annual Operating Expenses 68% 61% 51% Packet Pg. 398 Item 14 Generating cumulative net revenues at the levels shown in Table 1 is an indication that adequate funds should be available for the CCE program to meet critical financial needs such as: 1. Self-funding working capital requirements; 2. Establishing a rate st abilization fund; 3. Demonstrating the creditworthiness needed to enter into long -term contracts; and 4. Investing in local programs critical to meeting the goals of the CCE. TEA also conducted a stress-test analysis on the results assuming 75th percentile ener gy market prices (an approximately $5 per MWh increase above current forward prices), a 40 percent increase in the Power Charge Indifference Adjustment (PCIA) rate, and lower than expected generation rates for PG&E. Under these stress-test conditions, all three supply scenarios resulted in negative net revenues year-over-year. Rate premiums would be required to generate a similar level of cumulative net revenues to what is shown in the base case scenario. It is important to note that a four city CCE scenario that also includes Grover Beach and Paso Robles is the most resilient to the stress-test scenario, which is consistent with the greater economies of scale provided by this alternative. The PCIA is one of the most critical variables in projecting future CCE program financial viability. The PCIA is an exit fee charged by investor -owned utilities to customers that switch to another provider of electricity generation service through direct access or community choice aggregation. The fee is designed to cover above-market costs from contracts that the utilities entered into but no longer need and cannot sell in the market for the price they paid. The California Public Utilities Commission has an open proceeding, the PCIA Rulemaking Proceeding R.17-06-026, intended to make changes to how the fee is calculated. The final outcome of this proceeding is expected to be known on September 13, 2018 but may not be known until October. If the CPUC issues a ruling on the PCIA on September 13, 2018, staff will provide an assessment of the ruling’s impact on feasibility via a written addendum to this report and presentation at the September 18, 2018 City Council meeting. TEA advises the City of San Luis Obispo and the City of Morro Bay to view the results of the Technical Study as supportive of continuing to move forward with CCE program development, including preparation of an Implementation Plan; however, CCE viability should continue to be assessed on an ongoing basis at each critical step of program development. CCE Implementing Ordinance and Joint Powers Agreement Section 366.2(c)(12)(B) of the Public Utilities Code expressly contemplates the creation of a JPA so that counties and cities can “participate as a group in a community choice aggregation program.” California cities and counties can exercise this option by doing two things: 1) entering into a Joint Powers Agreement forming a JPA under Section 6500, et seq. of the Government Code; and 2) adopting an Ordinance electing to implement a community choice program within its jurisdiction as required by Section 366.2(c)(12)(A). Packet Pg. 399 Item 14 Implementing Ordinance An Ordinance that complies with the requirements of Section 366.2(c)(12)(A) is included as Attachment B. If approved and introduced, staff will present the Ordinance for a second reading at the October 2, 2018 meeting. JPA Agreement The proposed JPA Agreement and supporting resolution establishing the JPA are provided as Attachment C and Attachment D. The language is recommended by the joint City of Morro Bay and City of San Luis Obispo project team that has been meeting on this topic for several months. The team, with support from the City of San Luis Obispo and City of Morro Bay city attorneys, and outside legal support from Greg Stepanicich of Richards, Watsons, & Ge rshon, drafted the JPA document and ordinance working from discussions with key stakeholders, the SLO Climate Coalition Task Force, and existing documents provided by other jurisdictions that formed similar CCE programs (e.g. Valley Clean Energy Alliance, Peninsula Clean Energy, East Bay Community Energy). The JPA document establishes the framework for operation of the CCE program. Key provisions of the JPA document address: • Governance and Internal Organization (Article 3) • Roles and responsibilities of the Board of Directors and Operations Board (Section 3.1) • Recovery of initial funding by founding cities (Section 5.3) • Addition of new member jurisdictions and withdrawal of existing members (Section 2.5) Adoption of the Resolution approving the JPA Agreeme nt also requires the City to appoint two members to the Board of Directors (Section 3.1). Staff is recommending that the Council appoint two members to the Board of Directors at this meeting to facilitate scheduling of the first JPA Board meeting in November. Proposed Agency Name – Central Coast Community Energy After discussions with the SLO Climate Coalition Task Force, the City of Morro Bay, and internal discussions, staff proposes the name “Central Coast Community Energy.” The name is selected to reso nate with all potential regional growth partners and intentionally focuses on the “community” aspect of community choice energy. Operating Capital and Shared Resource Needs Should the City Council vote to proceed with the CCE program, the JPA will require operating capital support in the amount of approximately $1,100,000 prior to the program launch in 2020. The operating capital requirements for the JPA will vary depending on the level of staffing needed and the capacity for member cities to lend staff, office, and service resources. Packet Pg. 400 Item 14 Many existing CCE JPAs limited pre-launch costs through shared resources with its member agencies. For example, some CCE programs have shared office space, IT support, HR support, meeting space, accounting and back office systems, and JPA management staffing with member agency facilities and staff. Should the cities seek to share resources in this manner with the JPA the costs associated with those resources will be closely tracked and reimbursed in the manner agreed to upo n by all parties through a shared services agreement or cost allocation plan. Any arrangement of this nature would require additional approval by the City Council. Regardless of shared resources, the JPA will need working capital to hire a General Manage r and legal counsel, obtain insurance, and conduct pre-launch activities. The amount, which is estimated at approximately $1,100,000, could be loaned by the participating cities at their preferred interest rate, or could be obtained through a bank loan bac ked by the City’s credit via cash collateral or a credit guarantee agreement between the City or cities and the selected bank partner. Pre-launch working capital in the total of $1,100,000 has been incorporated into TEA’s Technical Study financial pro for ma and is projected to be reimbursed in the first 24 months of operations. City of Morro Bay Coordination and Next Steps Establishment of the JPA and the first meetings to seat the Board of Directors and submit the Implementation Plan are contingent on the City of Morro Bay adopting a CCE implementing ordinance, agreeing to identical JPA language, and adopting the JPA resolution. Staff will be present at the City of Morro Bay CCE study session on September 11, 2018 and will ask Morro Bay’s City Council t o communicate intention of proceeding and to provide any requested changes to the JPA. Due to the potentially dynamic nature of this coordination, staff anticipates supplemental written information to be provided as an addendum after this report has been posted to the public. This information will be made publicly available on the City’s website and presented during the presentation at the City of San Luis Obispo City Council meeting on September 18, 2018. Packet Pg. 401 Item 14 Project Schedule The following is an outline of the project schedule through 2020: Activity Date Public hearing to present Technical Study to City of San Luis Obispo City Council. If Council chooses to proceed, pass resolution to create and join the JPA and conduct first reading of the CCE ordinance 9/18/18 Public hearing to present Technical Study to City of Morro Bay City Council. If Council chooses to proceed, pass resolution to create and join the JPA and conduct first reading of the CCE ordinance 9/25/18 Public hearing to conduct second reading of the CCE ordinance (City of San Luis Obispo) 10/2/18 Public hearing to conduct second reading of the CCE ordinance (City of Morro Bay) 10/9/18 City of San Luis Obispo City Council meeting to authorize operating capital loan or provide backing for a third-party loan. Fall 2018 / Winter 2019 City of Morro Bay City Council meeting to authorize operating capital loan or provide backing for a third-party loan. Fall 2018 / Winter 2019 First JPA Board Meeting to seat the Board of Directors and establish initial policies Week of 11/6/18 Second JPA Board Meeting to adopt Implementation Plan for submittal to the California Public Utilities Commission Week of 11/20/18 Program Implementation and Operations Preparation 2019 Begin CCE Program Operation Early 2020 CONCURRENCES The City Attorney’s Office concurs with the form of this report. The Departments of Finance and Administration concur with the intent of this report. Additionally, the City Manager of the City of Morro bay and the SLO Climate Coalition Task Force also concur with this report. ENVIRONMENTAL REVIEW The establishment of a CCE is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to the CEQA Guidelines, as it is not a “project” as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment because energy will be transported through existing infrastructure (14 Cal. Code Regs. § 15378(a)). Further, establishing a CCE is exempt from CEQA as there is no possibility that this it would have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3)). Further, the establishment of a CCE is also categorically exempt because it is an action taken by a regulatory agency to assume the maintenance, restoration, enhancement or protection of the environment (14 Cal. Code Regs. § 15308). FISCAL IMPACT Staff’s approach has been to establish a program with nearly no net cost to the City and a limited exposure to risk by creating deferred compensation contracts that are transferable to the JPA. Packet Pg. 402 Item 14 Staff has so far been successful in this approach, however fiscal risks exist as described in this report including one-time risk (upfront debt requirements of approximately $1,100,000 for working capital and requ irements to pay up to $250,000 in deferred costs to TEA in the event the program does not launch) and ongoing risk (e.g., energy market and regulatory uncertainty). Potential Community Impact The CCE program seeks to be rate competitive with PG&E and to build reserves to ensure a stable program that can deliver local benefits to ratepayers. The updated Technical Study indicates that GHG free electricity, competitive rates, and a financially healthy organization are possible under base case and forecast market conditions, with the exception of the “stress test” case. Should the City pursue the CCE program, the intended outcomes would be energy related local economic development opportunities and a competitively priced cleaner electricity source. As mentio ned above, under the technical study’s “stress test” case (a scenario including unexpected market volatility, slow PG&E rate growth, and a rapid increase in the Power Charge Indifference Adjustment (described above), the program would not be financially viable. In an ongoing environment with these conditions, or in a worst -case scenario of energy market collapse, severe agency mismanagement, or other unlikely scenarios, the JPA could fail and go bankrupt. In that scenario, customers would be returned to PG&E service without service interruption and the financial obligations of the JPA would be limited exclusively to the JPA and would not affect the community nor the member agencies. Potential Agency Impact Should the unlikely scenario occur where the City “goes it alone”, but fails to launch a program, it would be exposed to up to $250,000 in deferred costs owed to TEA. If the City creates a JPA with Morro Bay, the TEA contract would be transferred to the new agency, which protects the City from monetary o r legal impact associated with failing to launch the program. Consistent with the approach taken by operating CCE programs and noted above, the JPA will require short -term resource sharing and working capital to complete the start -up phase and begin serving customers. Should the program move forward, the participating cities will be asked to consider options to provide credit support for this bridge funding later this Fall/early Winter. Although the required working capital prior to program launch will vary widely as mentioned above, staff expects a need for approximately $1,100,000, based on member city capacity to provide shared resources. This debt is usually short term (e.g. a one to two -year line of credit) and is often provided by a third-party lender, although it can be municipally financed as well. The amount of pre-revenue credit needed to support the program will require a credit guaranty which is usually provided by one or more members of the CCE Agency. The JPA’s guaranty requirement, would be released soon after receiving operational revenues (usually within 12 months or program launch). This basic structure of third party financing (generally a line of credit) with a credit guarantee to support the pre-revenue portion of the credit has been used in successful CCE launches including Valley Clean Energy Alliance, Marin Clean Energy, Sonoma Clean Power, and Silicon Valley Clean Energy. Should the JPA form and receive operating Packet Pg. 403 Item 14 capital, and/or lines of credit from the cities, and should JPA operat ions fail to launch, the cities would not be reimbursed, and/or would be responsible for any remaining debt. ALTERNATIVES 1. The City Council could direct staff to pursue a single-city (City of San Luis Obispo only) municipal program. As identified in Attachment A, this alternative is still financially feasible and would provide a path for the City to achieve its climate action goals. This alternative would require additional organizational support as it would be housed as a department within the City. Specifics around this support would require additional research. A regional approach (e.g., growing to allow regional cities and the County of San Luis Obispo to participate) would be more challenging under this alternative, as future expansion would require the creation of a JPA and a transfer of all the established services and contracts to the JPA. 2. The City Council could direct staff to join an existing CCE program. Monterey Bay Community Power (MBCP), which operates in Monterey, Santa Cruz, and San Benito counties, has supported City staff in the past and could provide an alternative to starting a local/regional program. Joining an existing program would limit initial exposure to financial risk. However, the local economic development, program implementation, and local control components of the program would be constrained. 3. The City Council could request additional information. Staff has been working on an accelerated timeline to ensure program operation can begin in 2020. If the City Council feels significant additional information is required to proceed, it can direct staff to gather that information and return at a later date. This would delay program initiation until 2021. 4. The City Council could elect not to proceed with Community Choice Energy at this t ime. Not developing a CCE program would eliminate financial risk exposure and would free staff time to pursue other sustainability initiatives. However, not having a CCE program would substantially constrain staff’s ability to achieve the City’s greenhouse gas emissions and economic development objectives. Attachments: a - Technical Study b - CCE Implementing Ordinance c - Joint Exercise of Power Agreement d - JPA Resolution Packet Pg. 404 Item 14 1 September 11, 2018 City of San Luis Obispo CCE Technical Study Prepared by: Packet Pg. 405 Item 14 2 CONTENTS 1 EXECUTIVE SUMMARY ............................................................................................. 3 2 INTRODUCTION ....................................................................................................... 4 3 PROSPECTIVE CCE MEMBER COMMUNITIES............................................................ 5 4 INDICATIVE POWER SUPPLY PORTFOLIO SCENARIOS ............................................ 11 5 FINDINGS AND CONCLUSIONS ............................................................................... 16 6 FINANCIAL PROJECTIONS ....................................................................................... 18 7 CCE RISK ANALYSIS ................................................................................................ 24 APPENDIX A: KEY ASSUMPTIONS.................................................................................. 25 Packet Pg. 406 Item 14 3 1 Executive Summary This study evaluates the feasibility of implementing a Community Choice Energy (CCE, also referred to as Community Choice Aggregation, or CCA) program in three groupings of the Cities of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach. For each city participation scenario, the study evaluates three power supply options for a total of nine scenarios. The power supply scenarios are illustrative of potential supply options and should not be considered prescriptive. They vary the amount of California Renewable Portfolio Standard (RPS) compliant power in the CCE’s portfolio while maintaining a 100% greenhouse-gas (GHG) free and non- nuclear power supply in all scenarios. TEA concludes that under base-case market and regulatory conditions, all nine scenarios would be feasible while offering customers a rate-discount relative to PG&E. Table ES1 shows cumulative net revenues in the third year1 of operations as a total and as a percent of annual operating expenses. These scenarios assume the CCE offers a 3% rate discount relative to PG&E, which is the average discount currently being offered by operating CCE programs. Table ES1: Cumulative net revenues in the third year of operations as a total and a percent of annual operating expenses. City Participation Scenario Power Supply Scenario RPS-Compliant, 100% GHG-Free 50% RPS, 100% GHG-Free 75% RPS, 100% GHG-Free San Luis Obispo $.9.9 million 63% of op. exp $9.1 million 57% of op. exp $7.6 million 47% of op. exp San Luis Obispo and Morro Bay $12.3 million 68% of op. exp $11.3 million 61% of op. exp $9.7 million 51% of op. exp San Luis Obispo, Morro Bay, Paso Roble, and Grover Beach* $23.9 million 80% of op. exp $22.4 million 74% of op. exp $20.1 million 64% of op. exp * Paso Robles and Grover Beach are not joining the potential CCE in 2020, but may join in 2021. TEA modeled these cities’ loads ramping up in 2021 in the 4-city scenario, which impacts 3rd year cumulative net revenues as a share of annual revenue requirement. Generating cumulative net revenues at the levels shown is an indication that adequate funds should be available for the CCE to meet critical financial needs such as: • Self-funding working capital requirements; 1 In these scenarios, net revenues are positive in all operating years modeled. Third year cumulative net revenues are presented because it reflects a time point after which the CCE has paid off its startup loan and phased in all loads. Packet Pg. 407 Item 14 4 • Establishing a rate stabilization fund; • Demonstrating the creditworthiness needed to enter into long-term contracts; • Investing in local programs to meet the long-term goals of the CCE. TEA also conducted a sensitivity analysis in which these scenarios were tested under less favorable market and regulatory conditions referred to as the alternative prices scenario. In that scenario, TEA assumed 75th percentile energy market prices (an approximately $5.5 per MWh increase above current forward prices), a 40% increase in the Power Charge Indifference Adjustment (PCIA) rate, and lower than expected generation rates for PG&E.2 Under these conditions, all three city grouping scenarios resulted in negative net revenues year-over-year without a 0%-2% rate premium over PG&E. Even higher rate premiums would be required to generate a similar level of cumulative net revenues to what is shown in the base case scenario. Of the three city-grouping scenarios, the 4-city CCE scenario was the most resilient to the adverse market conditions, which is consistent with the greater economies of scale provided by a program with more customers. It is important to note that the PCIA Rulemaking Proceeding R.17-06-026 is currently underway. The final outcome of this proceeding is expected on September 13th, but could be delayed. TEA has attempted to analyze the possible range of outcomes that may result from this proceeding. While this study ultimately concludes the CCE would be feasible under most market and regulatory conditions, these findings are sensitive to changes in market and regulatory conditions. As such, it will be critical to continually re-evaluate program feasibility throughout the implementation process. TEA advises SLO to view the results of this study as supportive of continuing to move forward with CCE development, including preparation of an Implementation Plan . However, CCE viability should continue to be assessed on an ongoing basis at each critical step. 2 Introduction On December 12, 2017, the City of San Luis Obispo City Council directed staff to “pursue forming a new CCE in conjunction with other interested jurisdictions in San Luis Obispo County and/or in PG&E territory of Santa Barbara County.” On April 24, 2018, the City of Morro Bay City Council expressed formal interest in participating in the creation of a new CCE program. Other jurisdictions, most notably the Cities of Paso Robles and Grover Beach, provided access to their data to understand the potential of joining a CCE program in the future. 2 The PCIA is an exit fee charged by investor-owned utilities (IOUs) to customers that switch to another provider of electricity generation service through direct access or community choice energy programs. The fee is designed to cover above-market costs from contracts that the utilities entered into but no longer need and cannot sell in the market for the price they paid. Packet Pg. 408 Item 14 5 To support the potential for a regional CCE program over time, the preferred governance structure is the development of a new Joint Powers Authority similar to the operational and governance approach of many currently operational CCE programs in California. The purpose of this analysis is to assess the potential benefits and risks associated with forming a CCE program under a few illustrative scenarios considering different configurations of community participation and power supply portfolios. It is important to note that the prospective scenarios evaluated in this study do not obligate an eventual CCE program to implement a particular scenario outlined in this study. Rather, the scenarios evaluated are intended to demonstrate program viability under a range of options and reasonable outcomes. 3 Prospective CCE Member Communities Three alternative levels of community participation were evaluated in this study: • Scenario 1: City of San Luis Obispo only • Scenario 2: Cities of San Luis Obispo and Morro Bay • Scenario 3: Cities of San Luis Obispo, Morro Bay, Paso Robles and Grover Beach In Scenario 3, we model the customers in the Cities of Paso Robles and Grover Beach being migrated in 2021, while customers from the Cities of San Luis Obispo and Morro Bay ramp up in 2020. 3.1 Number of Customers and Retail Load Forecast To create a load forecast for each scenario described above, Item 16 load data provided by PG&E for each city was aggregated by customer type by first shifting the monthly billing data from billing cycles to calendar months. Next, TEA applied PG&E load profiles for each customer class. The resulting hourly historical data set was summed to monthly values and then smoothed to account for weather effects. Growth rates were applied to each customer class using customer class growth forecasts assumed in the California Energy Commission’s California Demand Forecast for 2018 – 20303. Total number of customers and annual load for each scenario are shown in Table 1. Figure 1 summarizes monthly energy and peak demands for each load scenario. 3 https://efiling.energy.ca.gov/getdocument.aspx?tn=223244 Packet Pg. 409 Item 14 6 Table 1a: CCE Scenario 1 Load Forecast: City of San Luis Obispo Only Table 1b: CCE Scenario 2 Load Forecast: Cities of San Luis Obispo and Morro Bay 2016/17 Rate Class 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Avg # of Accts Residential 63,255 62,877 62,806 62,591 62,854 62,739 62,704 62,681 62,659 62,636 16,730 Low Income Res 12,729 12,652 12,637 12,595 12,649 12,624 12,618 12,614 12,610 12,605 2,463 Agriculture 111 110 110 110 110 109 109 109 108 108 10 Small Commercial 59,053 59,350 59,907 60,343 61,209 61,694 62,297 62,896 63,495 64,094 3,628 Med Commercial 50,754 51,015 51,495 51,870 52,614 53,028 53,548 54,062 54,577 55,091 293 Lg Commercial 58,552 58,846 59,397 59,836 60,689 61,178 61,776 62,372 62,968 63,564 127 Industrial - - - - - - - - - - - Street Lighting 653 651 652 653 657 658 659 661 663 664 161 Total Retail Sales 245,107 245,501 247,005 247,998 250,781 252,030 253,713 255,396 257,079 258,763 23,411 Total Wholesale Requirements 257,362 257,776 259,355 260,398 263,320 264,631 266,398 268,166 269,933 271,701 Annual Load Forecast (MWh) 2016/17 Rate Class 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Avg # of Accts Residential 81,336 80,857 80,766 80,488 80,819 80,671 80,625 80,593 80,561 80,529 21,712 Low Income Res 17,293 17,190 17,170 17,113 17,185 17,150 17,142 17,136 17,129 17,123 3,306 Agriculture 132 131 131 130 130 130 130 129 129 129 13 Small Commercial 71,139 71,497 72,168 72,691 73,735 74,320 75,046 75,768 76,489 77,211 4,401 Med Commercial 54,295 54,574 55,088 55,488 56,285 56,727 57,283 57,834 58,384 58,935 329 Lg Commercial 64,850 65,176 65,787 66,273 67,217 67,758 68,420 69,080 69,739 70,399 150 Industrial - - - - - - - - - - - Street Lighting 821 818 820 820 824 826 827 829 831 833 194 Total Retail Sales 289,866 290,243 291,929 293,004 296,196 297,582 299,474 301,369 303,263 305,158 30,105 Total Wholesale Requirements 304,359 304,755 306,526 307,654 311,005 312,461 314,448 316,437 318,427 320,416 Annual Load Forecast (MWh) Packet Pg. 410 Item 14 7 Table 1c: CCE Scenario 3 Load Forecast: Cities of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach 4 4 Note that the loads in 2020 are only for the Cities and San Luis Obispo and Morro Bay because the Cities of Paso Robles and Grover Beach are modeled as joining the CCE in 2021 in this scenario. 2016/17 Rate Class 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Avg # of Accts Residential 81,336 148,354 148,175 147,697 148,244 147,973 147,880 147,811 147,742 147,672 35,088 Low Income Res 17,293 38,488 38,441 38,321 38,463 38,388 38,366 38,349 38,331 38,313 7,617 Agriculture 132 1,424 1,421 1,417 1,416 1,411 1,408 1,405 1,402 1,399 41 Small Commercial 71,139 117,192 118,289 119,165 120,842 121,807 122,994 124,172 125,351 126,529 7,224 Med Commercial 54,295 108,169 109,184 109,989 111,560 112,430 113,536 114,626 115,715 116,805 379 Lg Commercial 64,850 98,080 98,999 99,730 101,148 101,961 102,957 103,948 104,939 105,930 231 Industrial - - - - - - - - - - - Street Lighting 821 1,959 1,962 1,961 1,972 1,974 1,978 1,982 1,986 1,991 278 Total Retail Sales 289,866 513,667 516,469 518,280 523,646 525,943 529,120 532,292 535,465 538,638 50,858 Total Wholesale Requirements 304,359 539,351 542,293 544,194 549,828 552,240 555,576 558,907 562,238 565,570 Annual Load Forecast (MWh) Packet Pg. 411 Item 14 8 Figure 1a: City of San Luis Obispo Monthly Energy and Peak Demand - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mo n t h l y L o a d ( M W h ) Scenario 1 -City of San Luis Obispo Only Residential Low Income Res Agriculture Small Commercial Med Commercial Lg Commercial Industrial Street Lighting 0 20 40 60 80 100 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec No n -Co i n d i e n t P e a k ( M W ) Scenario 1 -City of San Luis Obispo Only Packet Pg. 412 Item 14 9 Figure 1b: City of San Luis Obispo and Morro Bay Monthly Energy and Peak Demand - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mo n t h l y L o a d ( M W h ) Scenario 2 -Cities of San Luis Obispo and Morro Bay Residential Low Income Res Agriculture Small Commercial Med Commercial Lg Commercial Industrial Street Lighting 0 20 40 60 80 100 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec No n -Co i n c i d e n t P e a k ( M W ) Scenario 2 -Cities of San Luis Obispo and Morro Bay Packet Pg. 413 Item 14 10 Figure 1c: City of San Luis Obispo, Morro Bay, Grover Beach, & Paso Robles Monthly Energy and Peak Demand - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mo n t h l y L o a d ( M W h ) Scenario 3 -Cities of San Luis Obispo, Morro Bay, Paso Robles and Grover Beach Residential Low Income Res Agriculture Small Commercial Med Commercial Lg Commercial Industrial Street Lighting 0 20 40 60 80 100 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec No n -Co i n c i d e n t P e a k ( M W ) Scenario 3 -Cities of San Luis Obispo, Morro Bay, Paso Robles and Grover Beach Packet Pg. 414 Item 14 11 4 Indicative Power Supply Portfolio Scenarios Three indicative supply scenarios were created to assess the viability of a CCE program. • Supply Scenario 1: Compliance with California Renewable Portfolio Standard (33% RPS in 2020 increasing to 50% RPS requirement in 2030). • Supply Scenario 2: Constant 50% renewable energy portfolio content throughout the study period. • Supply Scenario 3: Constant 75% renewable energy portfolio content throughout the study period. This study presumes that the new CCE would want to meet, and ideally exceed, the renewable and GHG-free generation component of the PG&E portfolio. However, it is difficult to estimate PG&E’s future renewable energy and GHG-free content given uncertainty in how CCE load migration and retirement of Diablo Canyon generation will impact PG&E’s future renewable procurement and overall GHG-free content. To address this uncertainty, a range of scenarios were evaluated to test financial viability under a likely range of future outcomes that may be implemented to meet CCE program goals, as well as to ensure that a new CCE has a renewable and GHG-free portfolio content equal to, or greater than, that of PG&E. To meet this objective, TEA also included procurement of incremental carbon-free supply in excess of renewable energy to achieve a projected overall 100% GHG-free emissions level in each program year. The scenarios also assume that the CCE will not procure nuclear power as part of its clean power portfolio. Discussion of PG&E’s future portfolio is discussed in greater detail in Section 4.1. It is important to note that the prospective supply scenarios evaluated in this study do not obligate an eventual CCE to implement a particular scenario outlined in this study. Rather, the scenarios evaluated are intended to demonstrate program viability under a range of reasonable outcomes. 4.1 Portfolio Composition 4.1.1 CCE Resource Alternatives The following supply sources were considered in the analysis: • Portfolio Content Category 1 (“Bucket 1”) Renewable Energy : renewable energy produced by generating resources located inside a California Balancing Authority Area or that is directly delivered to a California Balancing Authority Area • Portfolio Content Category 2 (“Bucket 2”) Renewable Energy : renewable energy produced by generating resources located outside the state of California that is “stored and shaped” prior to redelivery to a California Balancing Authority Area. Packet Pg. 415 Item 14 12 • Carbon Free Energy: GHG energy supply, typically large hydroelectric generation, that does not meet the renewable eligibility requirements of California’s RPS program, which caps RPS-eligible hydroelectric generation at 30 MW. 4.1.2 PG&E Power Content Label Table 2 shows PG&E’s proportionate use of various power sources during the two most recent historical years – 2015 and 2016 - for which data Power Content Label data is available. Table 2: PG&E 2015 and 2016 Power Content Labels5 Key takeaways from this data: • Eligible renewable generation supplied 30% and 33%, respectively, of PG&E’s energy requirements in 2015 and 2016; • GHG-free generation supplied 59% and 69%, respectively, of PG&E’s total energy requirements in 2015 and 2016. PG&E’s 2017 Power Content Label will be published in the fall of 2018, but PG&E has publically stated that its 2017 energy requirements were sourced 33% from eligible renewable generation and approximately 79% from GHG free generation6, with 25% of this total coming from nuclear power. The challenge for this study is forecasting future PG&E energy requirements met by eligible renewables and GHG-free generation. Forecasting PG&E’s future portfolio content requires adjustments for load migration to CCEs, the shutdown of Diablo Canyon in 2024-2025 and 5 https://www.energy.ca.gov/pcl/labels/2016_labels/Pacific_Gas__and__Electric.pdf; https://www.energy.ca.gov/pcl/labels/2015_labels/Pacific_G as_and_Electric_(PGandE).pdf;. 6 http://www.pgecurrents.com/2018/02/20/pge-clean-energy-deliveries-already-meet-future-goals/ Energy Resources 2015 PG&E Power Mix 2016 PG&E Power Mix 2016 California Power Mix Eligible Renewable Biomass & biowaste Geothermal Eligible hydroelectric Solar Wind 30% 4% 5% 1% 11% 8% 33% 4% 5% 3% 13% 8% 25% 2% 4% 2% 8% 9% Coal 0% 0% 4% Large Hydroelectric 6% 12% 10% Natural Gas 25% 17% 37% Nuclear 23% 24% 9% Other 0% 0% 0% Unspecified sources of power 17% 14% 15% Total 100% 100% 100% Packet Pg. 416 Item 14 13 potential variability in hydroelectric generation. Each of these adjustments is described in further detail below. 4.1.2.1 CCE Load Migration (2019-2020) Relative to 2017 data , PG&E’s load is expected to decrease by roughly 36% in future years because of load migration to CCEs. Five new CCEs have, or are expected to, launch in 2018. The most notable of these new CCEs are East Bay Community Energy, San Jose Clean Energy, Monterey Bay Community Power, and the addition of Contra Costa County to Marin Clean Energy. The projected amount of CCE load migration is taken from the CEC’s California Demand Forecast for 2018 – 2030. 4.1.2.2 Forecasting PG&E Power Content (2020-2030) There are three components to PG&E’s portfolio that need to be considered to forecast future portfolio content: nuclear, hydro and renewables. • Nuclear: Historically, Diablo Canyon has met between 23% - 24% of PG&E’s demand in the last two years (see Power Content Labels for 2015 and 2016 respectively). Accounting for departing load, and assuming Diablo Canyon will continue to generate around its capacity over the remainder of its life, it could deliver over 40% of PG&E’s needs between 2020 and 2024. Even if PG&E did not replace Diablo Canyon with preferred resources (an unlikely scenario), expected CCE load migration will more than offset the loss of Diablo Canyon in the second half of the evaluation period. • Hydro: 2016 was celebrated at the time as a “wet” water year because it was significantly better than the previous 3 years that were critical or drought years; however, 2016 was actually a below-normal/dry water year. In contrast, 2017 was classified as “wet” according to the California Department of Water Resources report. Strong hydroelectric generation in 2017 helps explain PG&E’s reported 10% increase in GHG-free power in 2017 over 2016. It also suggests that 2016 could be more the norm than the high. Assuming 2015 hydro generation from 2020-2029 (a critical water year), hydro would supply over 10% of PG&E’s annual energy requirements during that time due to departing load. Assuming 2016 hydro generation from 2020-2029, hydro would supply over 20% of PG&E’s demand during that period. Of these, 2016 appears to be closer to the mean as well as the more conservative assumption for evaluation purposes in this study. • Renewables: PG&E’s existing renewable portfolio (based on deliveries in 2017) is large enough to exceed 50% of their total power needs starting in 2019 due to departing load. However, PG&E may continue to procure at least some RPS-eligible resources and exceed the requirements. Accounting for all these factors, it is highly probable that PG&E will be able to serve close to 100% of the energy requirements of bundled customers with GHG-free resources from 2020- 2025. After the retirement of Diablo, the share of GHG-free power may drop as low as 70% in Packet Pg. 417 Item 14 14 the most critical water years and would likely be between 85% and 90% in typical years, assuming PG&E acquired no preferred resources to replace Diablo Canyon, which seems unlikely. 4.1.3 CCE Portfolio Assumptions To be conservative, this study assumes all CCE power supply portfolios will be comprised of 100% GHG-free, non-nuclear power supply throughout all years of the study period to ensure the new CCE meets or exceeds the GHG-free content of PG&E’s portfolio. Table 3 summarizes the portfolios evaluated in this study. Table 3: CCE Portfolio Assumptions RPS Target GHG-Free Target Scenario 1 RPS Compliant: 30% in 2020 ramping up to 50% by 2030 100% Scenario 2 50% 100% Scenario 3 75% 100% 4.1.4 Renewable Energy and Storage Procurement Requirements As the CCE builds its portfolio, it will need to also plan to meet several mandatory requirements, which are described below. • Renewable Portfolio Standard (RPS): current RPS requirements are mandated by Senate Bill 2 (1X) passed in 2011. This bill mandated RPS procurement requirements within multi-year compliance periods. During the current 10-year forecast period, a minimum of 75% of required RPS procurement must be sourced from PCC 1 resources and a maximum of 10% can be sourced from PCC 3 resources. The difference can be sourced from PCC 2. For purposes of this analysis, no PCC3 resources were included. • SB 350: In October 2015, Senate Bill 350 (SB 350) was signed into law establishing new clean energy, clean air and greenhouse gas reduction goals for 2030 and beyond. SB 350 established California’s 2030 GHG reduction target of 40% below 1990 levels. To accomplish this, SB 350 set ambitious targets for renewable energy and energy efficiency. In particular, SB 350 increases California’s RPS goal from 33% by 2020 to 50% by 2030. The corresponding CPUC regulations require that transitions from the previous mandate will be implemented gradually with straight line increases during each year of the compliance regime. Additionally, SB 350 established that CCEs must have at least 65% of their RPS procurement under contracts of 10 years or longer beginning in 2021. Table 4 summarizes the CCE’s annual RPS requirements, as well as the amount of renewable energy that will need to be procured under a 10-year or longer agreement. Packet Pg. 418 Item 14 15 Table 4: Annual RPS Compliance Requirements 7,8 7 In Scenario 3, RPS requirements in 2020 are only for the Cities and San Luis Obispo and Morro Bay because the Cities of Paso Robles and Grover Beach are modeled as joining the CCE in 2021. 8 Long-term RPS refers to contracts for renewable energy of 10-years or longer that contribute to the CCE’s long-term procurement obligation defined in SB350. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Annual RPS Requirements 33.0% 34.8% 36.5% 38.3% 40.0% 41.7% 43.3% 45.0% 46.7% 48.3% Scenario 1 - City of San Luis Obispo Only: Total RPS Requirements (MWh)80,885 85,434 90,157 94,983 100,312 105,096 109,858 114,928 120,056 124,982 Total RPS Requirements (aMW)9.2 9.8 10.3 10.8 11.5 12.0 12.5 13.1 13.7 14.3 Long-Term RPS Requirement (MWh)- 55,532 58,602 61,739 65,203 68,313 71,407 74,703 78,036 81,239 Long-Term RPS Requirement (aMW)- 6.3 6.7 7.0 7.4 7.8 8.2 8.5 8.9 9.3 Scenario 2 - Cities of San Luis Obispo and Morro Bay: Total RPS Requirements (MWh)95,656 101,005 106,554 112,220 118,478 124,092 129,672 135,616 141,624 147,391 Total RPS Requirements (aMW)10.9 11.5 12.2 12.8 13.5 14.2 14.8 15.5 16.2 16.8 Long-Term RPS Requirement (MWh)- 65,653 69,260 72,943 77,011 80,660 84,287 88,150 92,056 95,804 Long-Term RPS Requirement (aMW)- 7.5 7.9 8.3 8.8 9.2 9.6 10.1 10.5 10.9 Scenario 3 - Cities of San Luis Obispo, Morro Bay, Paso Robles and Grover Beach: Total RPS Requirements (MWh)95,656 178,756 188,511 198,501 209,458 219,318 229,109 239,532 250,062 260,162 Total RPS Requirements (aMW)10.9 20.4 21.5 22.7 23.9 25.0 26.2 27.3 28.5 29.7 Long-Term RPS Requirement (MWh)- 116,192 122,532 129,026 136,148 142,557 148,921 155,696 162,540 169,105 Long-Term RPS Requirement (aMW)- 13.3 14.0 14.7 15.5 16.3 17.0 17.8 18.6 19.3 Packet Pg. 419 Item 14 16 • AB 2514: The California Energy Storage Bill, AB 2514, was signed into law in September 2010 and established energy storage targets for IOUs, CCEs, and other LSEs in September 2013. The applicable CPUC decision established an energy storage procurement target for CCEs and other LSEs equal to 1 percent of their forecasted 2020 peak load. The decision requires that contracts be in place by 2020 and projects be installed by 2024. Beginning on January 1, 2018, and every two years thereafter, LSEs must file an advice letter demonstrating progress toward meeting this target and a description of the methodologies for insuring projects are cost effective. Depending on the particular load scenario, the prospective CCE’s storage requirement will be between 0.5 and 1.0 MW. 5 Findings and Conclusions The major findings of this study are summarized in Table 5 below. Table 5a: City of San Luis Obispo Only CCE Program Metric Supply Scenario 1 Supply Scenario 2 Supply Scenario 3 RPS Percentage RPS-Compliant 50% 75% Annual GHG emissions (MT CO2e) 0 0 0 Average Rate Savings: 3% 3% 3% Residential Customers: Average rate savings in 2020 Average 5-yr rate savings $1.10/month $1.15/month $1.10/month $1.15/month $1.10/month $1.15/month Commercial Customers: Average rate savings in 2020 Average 5-yr rate savings $50.00/month $54.88/month $50.00/month $54.88/month $50.00/month $54.88/month Cumulative net revenues at end of year 3: Total $ % of Annual Op. Expenses $.9.9 million 63% of op. exp $9.1 million 57% of op. exp $7.6 million 47% of op. exp Table 5b: Two-City CCE Program (San Luis Obispo and Morro Bay) Metric Supply Scenario 1 Supply Scenario 2 Supply Scenario 3 RPS Percentage RPS-Compliant 50% 75% Annual GHG emissions (MT CO2e) 0 0 0 Average Rate Savings 3% 3% 3% Residential Customers: Packet Pg. 420 Item 14 17 Average rate savings in 2020 Average 5-yr rate savings $1.09/month $1.15/month $1.09/month $1.15/month $1.09/month $1.15/month Commercial Customers: Average rate savings in 2020 Average 5-yr rate savings $47.65/month $52.30/month $47.65/month $52.30/month $47.65/month $52.30/month Cumulative net revenues at end of year 3: Total $ % of Annual Op. Expenses $12.3 million 68% of op. exp $11.3 million 61% of op. exp $9.7 million 51% of op. exp Table 5c: Four-City CCE (San Luis Obispo, Morro Bay, Paso Robles and Grover Beach) Metric Supply Scenario 1 Supply Scenario 2 Supply Scenario 3 RPS Percentage RPS-Compliant 50% 75% Annual GHG emissions (MT CO2e) 0 0 0 Average Rate Savings: 2020 Average Rate Savings: 5-yr 3% 3% 3% 3% 3% 3% Residential Customers: Average rate savings in 2020 Average 5-yr rate savings $1.09/month $1.28/month $1.09/month $1.28/month $1.09/month $1.28/month Commercial Customers: Average rate savings in 2020 Average 5-yr rate savings $47.65/month $62.65/month $47.65/month $62.65/month $47.65/month $62.65/month Cumulative net revenues at end of year 3: Total $ % of Annual Op. Expenses $23.9 million 80% of op. exp $22.4 million 74% of op. exp $20.1 million 64% of op. exp In all nine scenarios, net revenues are positive in all modeled years while offering customers a 3% rate discount relative to PG&E, which is the average discount currently being offered by operating CCE programs. Moreover, all scenarios show that the CCE would be able to accumulate net revenues in excess of 150 days of expenses over three years of operations under these scenarios. Based on these findings, TEA concludes that under base-case market and regulatory conditions, all nine scenarios would be feasible. Packet Pg. 421 Item 14 18 6 Financial Projections A detailed summary of key assumptions is provided in Appendix A. Below are a few key assumptions: • January 2020 launch for customers in the Cities of San Luis Obispo and Morro Bay, and January 2021 launch for customers in the Cities of Paso Robles and Grover Beach • Customer opt-out rate of 10% • CCE electric generation rates are assumed to be set 3% below PG&E, inclusive/net of PCIA exit and franchise fees. • The PCIA charge reflects the existing PCIA rate setting structure using the market-price benchmark mechanism described in both the Administrative Law Judges’ Proposed Decision in the PCIA Rulemaking Proceeding and the Alternative Proposed Decision. 6.1 Projected Results Table 6a: Financial Projections for City of San Luis Obispo assuming Minimum RPS Compliance 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 12,051,583$ 12,943,149$ 13,458,921$ 13,954,627$ 14,555,244$ 15,079,528$ 15,579,292$ 16,114,000$ 16,674,750$ 17,239,420$ Portfolio & Data Management 625,906$ 644,683$ 664,023$ 683,944$ 704,462$ 725,596$ 747,364$ 769,785$ 792,879$ 816,665$ General and Administrative 1,042,628$ 1,150,686$ 1,204,491$ 1,254,843$ 1,319,580$ 1,372,791$ 1,421,860$ 1,475,262$ 1,531,706$ 1,588,011$ Cost of Credit for Procurement 231,626$ 231,999$ 233,420$ 234,358$ 236,988$ -$ -$ -$ -$ -$ PG&E Billing Services 53,121$ 53,652$ 54,189$ 54,731$ 55,278$ 55,831$ 56,389$ 56,953$ 57,523$ 58,098$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 14,701,864$ 15,574,169$ 15,615,044$ 16,182,504$ 16,871,553$ 17,233,747$ 17,804,905$ 18,416,000$ 19,056,858$ 19,702,195$ Revenues 18,352,836$ 18,596,535$ 19,182,468$ 19,293,856$ 19,701,118$ 20,095,001$ 21,096,339$ 22,212,092$ 23,437,774$ 24,696,996$ Net Revenue Annual 3,541,185$ 2,911,120$ 3,452,674$ 2,995,936$ 2,711,712$ 2,741,045$ 3,165,235$ 3,663,218$ 4,240,710$ 4,847,062$ Cumulative ($)3,541,185$ 6,452,305$ 9,904,979$ 12,900,915$ 15,612,627$ 18,353,672$ 21,518,907$ 25,182,125$ 29,422,835$ 34,269,897$ Cumulative (% of Tot. Rev. Req.)24% 41% 63% 80% 93% 106% 121% 137% 154% 174% Packet Pg. 422 Item 14 19 Table 6b: Financial Projections for City of San Luis Obispo assuming 50% RPS Table 6c: Financial Projections for City of San Luis Obispo assuming 75% RPS 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 12,314,092$ 13,188,239$ 13,685,671$ 14,160,472$ 14,739,418$ 15,238,591$ 15,711,010$ 16,216,318$ 16,745,398$ 17,275,932$ Portfolio & Data Management 625,906$ 644,683$ 664,023$ 683,944$ 704,462$ 725,596$ 747,364$ 769,785$ 792,879$ 816,665$ General and Administrative 1,080,129$ 1,185,699$ 1,236,884$ 1,284,250$ 1,345,891$ 1,395,514$ 1,440,677$ 1,489,879$ 1,541,798$ 1,593,227$ Cost of Credit for Procurement 231,626$ 231,999$ 233,420$ 234,358$ 236,988$ -$ -$ -$ -$ -$ PG&E Billing Services 53,121$ 53,652$ 54,189$ 54,731$ 55,278$ 55,831$ 56,389$ 56,953$ 57,523$ 58,098$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 15,001,874$ 15,854,272$ 15,874,187$ 16,417,754$ 17,082,037$ 17,415,532$ 17,955,440$ 18,532,935$ 19,137,598$ 19,743,923$ Revenues 18,352,836$ 18,596,535$ 19,182,468$ 19,293,856$ 19,701,118$ 20,095,001$ 21,096,339$ 22,212,092$ 23,437,774$ 24,696,996$ Net Revenue Annual 3,241,174$ 2,631,017$ 3,193,531$ 2,760,685$ 2,501,228$ 2,559,260$ 3,014,700$ 3,546,283$ 4,159,969$ 4,805,334$ Cumulative ($)3,241,174$ 5,872,191$ 9,065,722$ 11,826,407$ 14,327,635$ 16,886,895$ 19,901,594$ 23,447,877$ 27,607,847$ 32,413,181$ Cumulative (% of Tot. Rev. Req.)22% 37% 57% 72% 84% 97% 111% 127% 144% 164% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 12,700,136$ 13,588,713$ 14,102,493$ 14,592,918$ 15,190,823$ 15,706,421$ 16,195,268$ 16,717,878$ 17,264,869$ 17,812,871$ Portfolio & Data Management 625,906$ 644,683$ 664,023$ 683,944$ 704,462$ 725,596$ 747,364$ 769,785$ 792,879$ 816,665$ General and Administrative 1,135,278$ 1,242,909$ 1,296,429$ 1,346,028$ 1,410,377$ 1,462,347$ 1,509,856$ 1,561,530$ 1,616,009$ 1,669,933$ Cost of Credit for Procurement 231,626$ 231,999$ 233,420$ 234,358$ 236,988$ -$ -$ -$ -$ -$ PG&E Billing Services 53,121$ 53,652$ 54,189$ 54,731$ 55,278$ 55,831$ 56,389$ 56,953$ 57,523$ 58,098$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 15,443,067$ 16,311,956$ 16,350,554$ 16,911,979$ 17,597,929$ 17,950,195$ 18,508,877$ 19,106,146$ 19,731,279$ 20,357,567$ Revenues 18,352,836$ 18,596,535$ 19,182,468$ 19,293,856$ 19,701,118$ 20,095,001$ 21,096,339$ 22,212,092$ 23,437,774$ 24,696,996$ Net Revenue Annual 2,799,982$ 2,173,333$ 2,717,164$ 2,266,461$ 1,985,336$ 2,024,597$ 2,461,262$ 2,973,072$ 3,566,288$ 4,191,690$ Cumulative ($)2,799,982$ 4,973,314$ 7,690,478$ 9,956,939$ 11,942,275$ 13,966,871$ 16,428,134$ 19,401,206$ 22,967,495$ 27,159,185$ Cumulative (% of Tot. Rev. Req.)18% 30% 47% 59% 68% 78% 89% 102% 116% 133% Packet Pg. 423 Item 14 20 Table 6d: Financial Projections for Cities of San Luis Obispo & Morro Bay assuming Minimum RPS Compliance Table 6e: Financial Projections for Cities of San Luis Obispo & Morro Bay assuming 50% RPS 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,039,695$ 15,093,064$ 15,694,712$ 16,271,514$ 16,971,219$ 17,580,921$ 18,160,779$ 18,781,744$ 19,432,229$ 20,087,585$ Portfolio & Data Management 709,199$ 730,475$ 752,390$ 774,961$ 798,210$ 822,157$ 846,821$ 872,226$ 898,393$ 925,344$ General and Administrative 1,228,140$ 1,356,662$ 1,420,007$ 1,479,139$ 1,555,144$ 1,617,587$ 1,675,041$ 1,737,620$ 1,803,647$ 1,869,578$ Cost of Credit for Procurement 273,923$ 274,280$ 275,873$ 276,889$ 279,905$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 69,015$ 69,705$ 70,402$ 71,106$ 71,817$ 72,535$ 73,260$ 73,993$ 74,733$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 17,016,290$ 18,073,496$ 18,212,686$ 18,872,905$ 19,675,583$ 20,092,481$ 20,755,176$ 21,464,850$ 22,208,262$ 22,957,241$ Revenues 21,599,097$ 21,877,993$ 22,566,097$ 22,682,240$ 23,152,444$ 23,607,888$ 24,779,429$ 26,085,643$ 27,517,689$ 28,989,458$ Net Revenue Annual 4,453,601$ 3,673,622$ 4,218,419$ 3,673,648$ 3,338,362$ 3,374,183$ 3,876,020$ 4,464,748$ 5,144,815$ 5,858,801$ Cumulative ($)4,453,601$ 8,127,222$ 12,345,642$ 16,019,290$ 19,357,652$ 22,731,834$ 26,607,855$ 31,072,602$ 36,217,418$ 42,076,218$ Cumulative (% of Tot. Rev. Req.)26% 45% 68% 85% 98% 113% 128% 145% 163% 183% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,350,142$ 15,382,821$ 15,962,702$ 16,514,715$ 17,188,745$ 17,768,733$ 18,316,257$ 18,902,482$ 19,515,568$ 20,130,644$ Portfolio & Data Management 709,199$ 730,475$ 752,390$ 774,961$ 798,210$ 822,157$ 846,821$ 872,226$ 898,393$ 925,344$ General and Administrative 1,272,489$ 1,398,056$ 1,458,292$ 1,513,882$ 1,586,219$ 1,644,417$ 1,697,252$ 1,754,868$ 1,815,553$ 1,875,729$ Cost of Credit for Procurement 273,923$ 274,280$ 275,873$ 276,889$ 279,905$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 69,015$ 69,705$ 70,402$ 71,106$ 71,817$ 72,535$ 73,260$ 73,993$ 74,733$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 17,371,086$ 18,404,646$ 18,518,962$ 19,150,848$ 19,924,185$ 20,307,123$ 20,932,865$ 21,602,837$ 22,303,507$ 23,006,450$ Revenues 21,599,097$ 21,877,993$ 22,566,097$ 22,682,240$ 23,152,444$ 23,607,888$ 24,779,429$ 26,085,643$ 27,517,689$ 28,989,458$ Net Revenue Annual 4,098,805$ 3,342,471$ 3,912,144$ 3,395,705$ 3,089,761$ 3,159,541$ 3,698,332$ 4,326,760$ 5,049,571$ 5,809,591$ Cumulative ($)4,098,805$ 7,441,276$ 11,353,420$ 14,749,125$ 17,838,885$ 20,998,426$ 24,696,758$ 29,023,518$ 34,073,089$ 39,882,680$ Cumulative (% of Tot. Rev. Req.)24% 40% 61% 77% 90% 103% 118% 134% 153% 173% Packet Pg. 424 Item 14 21 Table 6f: Financial Projections for Cities of San Luis Obispo & Morro Bay assuming 75% RPS Table 6g: Financial Projections for Cities of San Luis Obisp o, Morro Bay, Paso Robles, and Grover Beach assuming Minimum RPS Compliance 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,806,681$ 15,856,280$ 16,455,333$ 17,025,640$ 17,721,897$ 18,321,120$ 18,887,864$ 19,494,339$ 20,128,357$ 20,763,851$ Portfolio & Data Management 709,199$ 730,475$ 752,390$ 774,961$ 798,210$ 822,157$ 846,821$ 872,226$ 898,393$ 925,344$ General and Administrative 1,337,709$ 1,465,693$ 1,528,667$ 1,586,871$ 1,662,383$ 1,723,329$ 1,778,910$ 1,839,419$ 1,903,094$ 1,966,187$ Cost of Credit for Procurement 273,923$ 274,280$ 275,873$ 276,889$ 279,905$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 69,015$ 69,705$ 70,402$ 71,106$ 71,817$ 72,535$ 73,260$ 73,993$ 74,733$ Startup Loan Repayment 697,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 17,892,844$ 18,945,742$ 19,081,968$ 19,734,763$ 20,533,501$ 20,938,423$ 21,586,131$ 22,279,245$ 23,003,837$ 23,730,116$ Revenues 21,599,097$ 21,877,993$ 22,566,097$ 22,682,240$ 23,152,444$ 23,607,888$ 24,779,429$ 26,085,643$ 27,517,689$ 28,989,458$ Net Revenue Annual 3,577,046$ 2,801,375$ 3,349,138$ 2,811,790$ 2,480,444$ 2,528,241$ 3,045,066$ 3,650,352$ 4,349,240$ 5,085,925$ Cumulative ($)3,577,046$ 6,378,421$ 9,727,559$ 12,539,349$ 15,019,793$ 17,548,034$ 20,593,100$ 24,243,453$ 28,592,693$ 33,678,618$ Cumulative (% of Tot. Rev. Req.)20% 34% 51% 64% 73% 84% 95% 109% 124% 142% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,018,186$ 25,692,345$ 26,719,867$ 27,707,315$ 28,905,050$ 29,949,112$ 30,943,800$ 32,005,432$ 33,116,933$ 34,235,972$ Portfolio & Data Management 709,199$ 999,287$ 1,029,266$ 1,060,144$ 1,091,948$ 1,124,707$ 1,158,448$ 1,193,201$ 1,228,997$ 1,265,867$ General and Administrative 608,883$ 1,424,565$ 1,495,038$ 1,560,636$ 1,646,094$ 1,715,388$ 1,778,803$ 1,847,815$ 1,920,704$ 1,993,252$ Cost of Credit for Procurement 273,923$ 485,416$ 488,064$ 489,775$ 494,845$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 117,149$ 118,320$ 119,504$ 120,699$ 121,906$ 123,125$ 124,356$ 125,599$ 126,855$ Startup Loan Repayment 847,000$ 700,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 16,525,523$ 29,418,762$ 29,850,555$ 30,937,374$ 32,258,636$ 32,911,112$ 34,004,176$ 35,170,804$ 36,392,234$ 37,621,947$ Revenues 21,599,097$ 38,728,023$ 39,941,554$ 40,129,417$ 40,937,892$ 41,730,837$ 43,800,579$ 46,101,461$ 48,619,664$ 51,206,014$ Net Revenue Annual 4,944,367$ 9,077,588$ 9,852,067$ 8,951,987$ 8,434,363$ 8,570,088$ 9,534,386$ 10,654,875$ 11,936,585$ 13,277,749$ Cumulative ($)4,944,367$ 14,021,955$ 23,874,021$ 32,826,008$ 41,260,371$ 49,830,460$ 59,364,845$ 70,019,720$ 81,956,305$ 95,234,055$ Cumulative (% of Tot. Rev. Req.)30% 48% 80% 106% 128% 151% 175% 199% 225% 253% Packet Pg. 425 Item 14 22 Table 6h: Financial Projections for Cities of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach assuming 50% RPS Table 6i: Financial Projections for Cities of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach assuming 75% RPS 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,328,632$ 26,205,152$ 27,193,986$ 28,137,501$ 29,289,615$ 30,281,048$ 31,218,552$ 32,218,726$ 33,264,109$ 34,311,988$ Portfolio & Data Management 709,199$ 999,287$ 1,029,266$ 1,060,144$ 1,091,948$ 1,124,707$ 1,158,448$ 1,193,201$ 1,228,997$ 1,265,867$ General and Administrative 639,587$ 1,475,282$ 1,541,929$ 1,603,182$ 1,684,128$ 1,748,217$ 1,805,976$ 1,868,910$ 1,935,260$ 2,000,770$ Cost of Credit for Procurement 273,923$ 485,416$ 488,064$ 489,775$ 494,845$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 117,149$ 118,320$ 119,504$ 120,699$ 121,906$ 123,125$ 124,356$ 125,599$ 126,855$ Startup Loan Repayment 847,000$ 700,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 16,866,673$ 29,982,287$ 30,371,564$ 31,410,105$ 32,681,235$ 33,275,877$ 34,306,101$ 35,405,193$ 36,553,966$ 37,705,481$ Revenues 21,599,097$ 38,728,023$ 39,941,554$ 40,129,417$ 40,937,892$ 41,730,837$ 43,800,579$ 46,101,461$ 48,619,664$ 51,206,014$ Net Revenue Annual 4,603,217$ 8,514,063$ 9,331,057$ 8,479,255$ 8,011,764$ 8,205,324$ 9,232,461$ 10,420,486$ 11,774,853$ 13,194,216$ Cumulative ($)4,603,217$ 13,117,281$ 22,448,337$ 30,927,593$ 38,939,356$ 47,144,680$ 56,377,141$ 66,797,627$ 78,572,480$ 91,766,696$ Cumulative (% of Tot. Rev. Req.)27% 44% 74% 98% 119% 142% 164% 189% 215% 243% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Power Supply 14,785,171$ 27,043,072$ 28,065,528$ 29,041,252$ 30,232,177$ 31,257,330$ 32,228,669$ 33,264,284$ 34,346,283$ 35,429,865$ Portfolio & Data Management 709,199$ 999,287$ 1,029,266$ 1,060,144$ 1,091,948$ 1,124,707$ 1,158,448$ 1,193,201$ 1,228,997$ 1,265,867$ General and Administrative 684,739$ 1,558,153$ 1,628,125$ 1,692,564$ 1,777,349$ 1,844,772$ 1,905,878$ 1,972,317$ 2,042,288$ 2,111,330$ Cost of Credit for Procurement 273,923$ 485,416$ 488,064$ 489,775$ 494,845$ -$ -$ -$ -$ -$ PG&E Billing Services 68,331$ 117,149$ 118,320$ 119,504$ 120,699$ 121,906$ 123,125$ 124,356$ 125,599$ 126,855$ Startup Loan Repayment 847,000$ 700,000$ -$ -$ -$ -$ -$ -$ -$ -$ Total Revenue Requirement 17,368,364$ 30,903,078$ 31,329,303$ 32,403,238$ 33,717,018$ 34,348,715$ 35,416,120$ 36,554,158$ 37,743,168$ 38,933,917$ Revenues 21,599,097$ 38,728,023$ 39,941,554$ 40,129,417$ 40,937,892$ 41,730,837$ 43,800,579$ 46,101,461$ 48,619,664$ 51,206,014$ Net Revenue Annual 4,101,526$ 7,593,272$ 8,373,318$ 7,486,123$ 6,975,981$ 7,132,486$ 8,122,442$ 9,271,521$ 10,585,651$ 11,965,780$ Cumulative ($)4,101,526$ 11,694,798$ 20,068,116$ 27,554,239$ 34,530,220$ 41,662,706$ 49,785,148$ 59,056,668$ 69,642,319$ 81,608,099$ Cumulative (% of Tot. Rev. Req.)24% 38% 64% 85% 102% 121% 141% 162% 185% 210% Packet Pg. 426 Item 14 23 6.2 Sensitivity Analysis TEA created an alternative price scenario to test the financial viability of the CCE program. The alternative price scenario modified three key assumptions and was applied to each community participation scenario assuming a 50% RPS power portfolio. The three variables modified in the sensitivity scenario are: 1) Market Prices were increased by an average of $5.57/MWh over base-case forward prices for the study horizon. Based on current market price volatility, there is a 75% chance that market prices will be lower than those assumed in this alternative scenario but a 25% chance that actual market prices will be higher. 2) Power Charge Indifference Adjustment (PCIA) rates were increased 40% relative to the base case. This higher PCIA estimate is representative of the possible impact if the CPUC adopts the Alternative Proposed Decision in Rulemaking Proceeding R.17-06-026. It is difficult to assign a probability to this scenario, but it is important to remember that the Alternative Proposed Decision was proposed by Commissioner Peterman. 3) PG&E Generation Rates were decreased by an average of 10% over the study horizon relative to the base-case scenario – equivalent to PG&E generation rates increasing at 2% annually from 2019 through the study period. This is in contrast to current rate forecasts, which show a significant PG&E rate increase in 2020 due to large departing load. Like the PCIA increase, it is difficult to assign a probability to this decreased generation rate scenario. However, this scenario is consistent with the assumption above regarding a larger PCIA, which would offset some of PG&E’s generation costs. TEA views this alternative price scenario as a plausible outcome that the CCE should be prepared to address. Results of the alternative price scenario are presented in Table 7 below. Table 7: Alternative price scenario results for all three community participation scenarios assuming 50% RPS under two rate discount scenarios Community Participation Scenario Cumulative net revenues at end of year 3: 3% Generation Rate Discount to PG&E 0% Generation Rate Discount to PG&E Total ($ Million) % of Annual Expenses Total ($ Million) % of Annual Expenses City of San Luis Obispo ($3.2M) (18%) ($1.0M) (6%) Cities of San Luis Obispo and Morro Bay ($3.2M) (16%) ($0.6M) (3%) Cities of San Luis Obispo, Morro Bay, Paso Roble, and Grover Beach $0.6M 2% $4.5M 13% Packet Pg. 427 Item 14 24 Under the alternative prices, the 1 and 2-city scenarios result in negative net revenues year- over-year when maintaining the 3% rate discount relative to PG&E, while the 4-city scenario presents slightly positive results. If the rate discount is set at zero, only the 4-city scenario yields positive net revenue, while the 1 and 2-city scenarios require between a 1% and 2% rate premium over PG&E in order to achieve positive net revenues. However, it’s important to note that these scenarios do not take into account some mitigating factors such as the CCE’s ability to make more conservative policy and budgeting decisions than were assumed for this study. These results demonstrate the need for the potential CCE member communities to continue to reevaluate market and regulatory conditions throughout the CCE planning and implementation process. The participating communities will be able to adjust program design if these adverse conditions begin to develop. 7 CCE Risk Analysis While there are many benefits to a CCE, there are also risks that need to be identified, monitored, and mitigated. A detailed risk assessment is beyond the scope of this study, but there are a few primary risks associated with power supply procurement and legal/regulatory changes that need to be considered as part of the decision to launch a CCE program. If the new CCE’s rates become significantly higher than PG&E’s, there is a risk that customers may revert to PG&E service, which could potentially threaten the CCE’s financial viability. It will therefore be important for the CCE to follow industry best practices including: • Financial Reserves – Building financial reserves as a buffer against unexpected cost increases, as well as to serve as a means of demonstrating creditworthiness for long- term contracting. A key measure considered in this study is how quickly the new CCE will build financial reserves to a level equivalent to 150 to 180 days of annual operating expenses. A financial buffer of this magnitude can help mitigate unexpected changes in procurement costs, PG&E rates and/or other unexpected cost shocks. • Risk Management – Implementing an energy risk management program consistent with industry best practices, including spreading procurement over time, across counterparties and among different generation technologies, as well as continually monitoring open positions and the expected cost of the same. • Qualified Staff – Employing competent and experienced staff and third-party service providers that can enable a new CCE to quickly launch and implement best practices. • Regulatory and Legislative Monitoring – Coordinating with Cal-CCE, other CCEs and other interested parties to understand and influence legislative and regulatory decisions, as well as actively monitor proceedings. • Demonstrating Customer and Community Value Beyond Rate Savings – Implementing customer and community-based programs and having a positive reputation in the community will help mitigate customer opt-outs as has been demonstrated by other Packet Pg. 428 Item 14 25 CCE programs that have been through periodic cycles of higher rates than PG&E as a result of fluctuating PCIA charges. 7.1 PCIA Rulemaking Arguably, the single largest risk currently facing a new CCE is the outcome of the current PCIA Rulemaking proceeding. A final ruling in this proceeding is not expected until after completion of this study, sometime in mid/late September. Updates that have material impact on this report’s current analysis will be provided right away. To test financial viability under a range of future possible scenarios, TEA has created a sensitivity scenario that increases the PCIA charge 40% above the base case scenario. The assumed customer class weighted PCIA charge for both base and stressed scenarios is provided in Appendix A: Key Assumptions. Prior to submitting its Implementation Plan, TEA also recommends updating the financial analysis after the final PCIA ruling is available. 7.2 Long-term Contracting A unique challenge facing all CCEs launching in 2020 is the need to immediately enter into long- term contracts to satisfy the requirement to procure 65% of renewable supply under a 10-year or longer contract. While the long-term contract requirement is not unique, having to satisfy the creditworthiness standards of potential generators without the benefit of accumulating financial reserves and establishing an operating track record is a unique challenge. For the purposes of this study, TEA has assumed base PCC1 prices are sufficient to cover the mid-point of expected long-term renewable contracting costs (see Appendix). However, the implied REC premium of long-term contracts must be assessed on a case-by-case basis as these costs can vary widely depending on generation profile and congestion at the point the generator connects with the CAISO grid. Fortunately, the extended timeline prior to implementation in 2020 gives the prospective CCE time to explore with other CCEs, as well as potential generators, the requirements for long-term contracting that a new CCE will face. This inquiry will enable the new CCE to incorporate these requirements into financial and operating plans and policies established at program launch. Possible direct and indirect means of addressing long-term contract requirements may include, but are not limited to: • Contracting with economically-priced local generators that are likely to be have greater interest in establishing a mutually beneficial, long-term, relationship with a local CCE; • Partnering with established CCEs in their procurement activities for a portion of long- term requirements; • Being disciplined in executing rate and financial policies to achieve and maintain a strong liquidity positon and generate the required levels of free cash flow; • Building a strong relationship with the local community to help ensure commitment to the CCE program, even during a period when rates may need to be set above PG&E to meet the procurement goals of the CCE. Packet Pg. 429 Item 14 26 Appendix A: Key Assumptions • Customer Opt-out rate of 10% for all scenarios • Startup costs equal $1.25 million for the 1 and 2-city scenarios and $1.55 million for the 4-city scenario, including the $147,000 CPUC bond. • The $500,000 posting to CAISO needed to satisfy the credit requirements for the CCE to be a Candidate Congestion Revenue Rights (CRR) Holder is not included at this time, nor has the revenue associated with CRRs been included. Historically, CRR revenues have provided $0.50 to $1.50 per MWh. • Accumulated Net Revenues o Target by end of 2024 equal to 5-6 months of operating expenses (including power supply expenses) o Annual target equal to 8.3 to 10% of projected operating expenses in year 5 • Forward Power Supply Costs ($/MWh) Table 8: Forward Power Supply Cost Assumptions Energy (ATC) PCC1 PCC29 CF 2020 $34.16 $17.50 $7.00 $3.00 2021 $37.11 $18.00 $7.25 $3.25 2022 $38.35 $18.50 $7.50 $3.50 2023 $39.54 $19.00 $7.75 $3.75 2024 $40.68 $19.50 $8.00 $4.00 2025 $41.78 $20.00 $8.25 $4.25 2026 $42.87 $20.50 $8.50 $4.50 2027 $43.99 $21.00 $8.75 $4.75 2028 $45.14 $21.50 $9.00 $5.00 2029 $46.32 $22.00 $9.25 $5.25 • Miscellaneous Power Supply Costs o CAISO: $1.44/MWh o Distribution losses: 5% 9 Due to the passage of California Assembly Bill 1110, PCC2 purchases are not considered carbon-free. Accordingly, TEA assumed carbon-free power would need to be purchased in addition to all PCC2 purchases in order to achieve the CCE goal of zero GHG emissi ons. Packet Pg. 430 Item 14 27 o Portfolio Management and Scheduling Coordination consistent with TEA’s proposal • Non-power supply costs o Internal staffing, overhead and administration: $90,000 per month for the City of San Luis Obispo only; $109,000 per month for the City of San Luis Obispo and Morro Bay; and $126,000 for the City of San Luis Obispo, Morro Bay, Paso Robles, and Grover Beach o Data management fees: $1.15 per customer per month in 2020, escalating at 3% per year o PG&E service fees: $0.21 per customer per month • PG&E Generation and PCIA Rate Forecast (Load Weighted Average) Table 9: Forward Power Supply Cost Assumptions PG&E Gen Rate ($/MWh) PG&E PCIA ($/MWh) 2020 $110.92 $24.71 2021 $112.55 $25.18 2022 $113.74 $25.66 2023 $115.64 $26.15 2024 $117.42 $26.65 2025 $119.23 $27.16 2026 $123.72 $27.67 2027 $128.83 $28.20 2028 $134.29 $28.74 2029 $139.99 $29.29 • Uncollected debt equals 0.3% of revenues based on the historic collection rates at public utilities throughout California. Packet Pg. 431 Item 14 O ______ ORDINANCE NO. _____ (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM WHEREAS, on December 12, 2017, the City Council directed staff to investigate the feasibility and formation of a Community Choice Aggregation (CCA) program under the provisions of the Public Utilities Code Section 366.2 (referred to locally as Central Coast Communit y Energy, or CCCE) in order to provide electric service to customers within the City of San Luis Obispo and the San Luis Obispo region with the intent of achieving reduced greenhouse gas emissions, local renewable power development, competitive electric ra tes, and the implementation of energy conservation and other energy programs ; and WHEREAS, the City of San Luis Obispo commissioned a technical study showing that a CCA program serving the City and surrounding communities would provide several benefits, including: ▪ Providing customers a choice of power providers and power supply options; ▪ Increasing local control and involvement in energy rates and other energy-related matters; ▪ Providing stable electric rates that are competitive with those provided by the incumbent utility; ▪ Reducing greenhouse gas emissions arising from electricity use within the City and surrounding region; ▪ Increasing local renewable generation capacity; ▪ Increasing energy conservation and efficiency projects and programs; ▪ Increasing regional energy self-sufficiency; ▪ Improving the local economy resulting from the implementation of a CCA program and local renewable and energy efficiency projects over time; and WHEREAS, the Cities of San Luis Obispo and Morro Bay, formed a Joint Powers Agency creating Central Coast Community Energy (“CCCE.”) Under the Joint Powers Agreement, cities and towns within San Luis Obispo County and adjoining Counties as well as County governments may participate in the Central Coast Community Energy CCA program by adopting the JPA resolution and ordinance required by Public Utilities Code section 366.2. Public entities choosing to participate in the CCA program will have membership on the Board of Directors of CCCE as provided in the Joint Powers Agreement; and WHEREAS, CCCE will enter into Agreements with electric power suppliers and other service providers, and based upon those Agreements CCCE will be able to provide power to residents and businesses at rates that are competitive with those of the incumbent utility (“PG&E”). Once the California Public Utilities Commission certifies the Implementation Plan adopted by CCCE, CCCE will provide service to customers within the City of San Luis Obispo and the jurisdictions of those cities and counties that have chosen to participate in CCCE; and Packet Pg. 432 Item 14 Ordinance No. _____ (2018 Series) Page 2 O ______ WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt - out of a CCA program and continue to receive service from the incumbent utility. Customers who wish to receive service from the incumbe nt utility will be able to do so at any time; and WHEREAS, on September 18 and October 2, the City Council held public hearings on the topic of CCA at which time interested persons had an opportunity to testify either in support of or opposition to the implementation of a CCA program serving the City of San Luis Obispo . NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitations are true and correct and material to this Ordinance. SECTION 2. Authorization to Implement a Community Choice Aggregation Program. Based upon the forgoing, and in order to provide business es and residents within the City of San Luis Obispo with a choice of power providers and with the benefits described abov e, the City Council hereby elects to implement a community choice aggregation program within the jurisdiction of the City by participating as a group in the Community Choice Aggregation Program of Central Coast Community Energy, as generally described in its Joint Powers Agreement. SECTION 3. Environmental Review. This ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines, as it is not a “project” as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. (14 Cal. Code Regs. § 15378(a)). Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant effect on the environment. (14 Cal. Code Regs. § 15061(b)(3)). The ordinance is also categorically exempt because it is an action taken by a regulatory agency to assume the maintenance, restoration, enhancement or protection of the environment. (14 Cal. Code Re gs. § 15308). SECTION 4. Severability. If any section, sub-section, sentence, clause, or phrase of this Ordinance is held by a court of competent jurisdiction to be invalid, such decision shall not affect the remaining portions this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, sub-section, sentence, clause, and phrase hereof, irrespective of the fact that one or more sections, sub-sections, sentences, clauses, and phrases be declared invalid. SECTION 5. A summary of this Ordinance, together with the names of the Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This Ordinance shall be adopted as an un-codified ordinance and shall be in full force and effective 30 days after its adoption. INTRODUCED on the ____ day of ____, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2018, on the following vote: AYES: NOES: Packet Pg. 433 Item 14 Ordinance No. _____ (2018 Series) Page 3 O ______ ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 434 Item 14 Page 1 01181.0001/491349.1 JOINT EXERCISE OF POWER AGREEMENT RELATING TO AND CREATING CENTRAL COAST COMMUNITY ENERGY This Joint Exercise of Powers Agreement , effective as of ____________, 2018 is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the California Government Code among the Parties. RECITALS A. The Parties share various powers under California law, including , but not limited to, the power to purchase, supply, and aggregate electricity for themselves and customers within their jurisdictions. B. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emis sions in 2020 to 1990 levels. In 2016, the State Legislature adopted SB 32, which mandates statewide greenhouse gas emissions be reduced to 40 percent below the 1990 level by 2030. The California Air Resources Board is promulgating regulations to impleme nt the greenhouse gas reduction targets, which will require local governments to develop programs to reduce greenhouse gas emissions. C. The purposes for entering into this Agreement include: a. Reducing greenhouse gas emissions; b. Providing electric power to customers at a competitive cost; c. Carrying out programs to reduce energy consumption; d. Stimulating and sustaining the local economy by developing local jobs in renewable energy and energy efficiency; and e. Promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources. D. It is the mission and purpose of this Agreement to build a strong Community Choice Energy (CCE) program that is locally controlled and delivers greenhouse gas emiss ion reductions, cost-competitive clean electricity, product choice, price stability, and energy efficiency. E. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy efficiency programs, including but not limited to solar, wind, and biomass energy production. The purchase of renewable power and greenhouse gas-free energy sources will decrease regional greenhouse gas emissions and accelerate the State’s transition to clean power resources to the extent feasible. Implementing a CCE program pursuant to this Agreement also will add increasing levels of locally generated renewable resources. Packet Pg. 435 Item 14 Page 2 01181.0001/491349.1 F. The Parties desire to establish a separate public agency, known as Central Coast Community Energy, a California joint powers authority, or CCCE, under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs. G. The Parties have each adopted an ordinance electing to implement , through the CCCE, a common CCE program (also known as a Community Choice Aggregation (CCA) program) hereinafter called the CCE Program, pursuant to California Public Utilit ies Code, sections 331.1(b) and 366.2. The first priority of the CCCE will be the consideration of those actions necessary to implement the CCE Program. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows: ARTICLE 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. Capitalized terms used in this Agreement shall have the meanings specified in Exhibit A, unless the context requires otherwise. 1.2 Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement: Exhibit A: Definitions Exhibit B: List of the Parties Exhibit C: Annual Energy Use Exhibit D: Voting Shares Exhibit E: Signatures ARTICLE 2. FORMATION OF CENTRAL COAST COMMUNITY ENERGY 2.1 Effective Date and Term. This Agreement shall become effective and CCCE shall exist as a separate public agency on [insert date], or when both the cities of San Luis Obispo and Morro Bay have executed this Agreement, whichever occurs later. The CCCE shall provide notice to the Parties of the Effective Date. CCCE shall continue to exist, and this Agreement shall be effective, until this Agreement is terminated in accordance with Section 6.4, subject to the rights of the Parties to withdraw from CCCE. 2.2 Formation. There is formed, as of the Effective Date, a public agency named Central Coast Community Energy. Pursuant to Sections 6506 and 6507 of the Act, CCCE is a public agency separate from the Parties. Pursuant to Sections 6508.1 of the Act, the debts, liabilities or obligations of CCCE shall not be debts, liabilities or obligations of the individual Parties unless the governing Packet Pg. 436 Item 14 Page 3 01181.0001/491349.1 body of a Party agrees in writing to assume any of the debts, liabilities or obligations of CCCE. A Party who has not agreed to assume an CCCE debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of CCCE. Notwithstanding Section 7.4 of this Agreement, this Section 2.2 may not be amended, unless such amendment is approved by the governing body of each Party. 2.3 Name. CCCE may change its name at any time through adoption of a resolution of the Board of Directors. 2.4 Purpose. The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Party to establish and operate a CCE Program that achieves long-term GHG emission reductions by offering clean, cost effective and price stable electricity to residents, businesses, and agricultural producers, while carrying out innovative programs to reduce customer energy use, substantially increase local renewable energy production, and power the local transportation system. To that end, CCCE will study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. Without limiting the generality of the foregoing, the Parties intend for this Agreement to be used as a contractual mechanism by which the Parties are authorized to participat e in the CCE Program, as further described in Section 4.1. The Parties intend other agreements shall define the terms and conditions associated with the implementation of the CCE Program and any other energy programs approved by CCCE. 2.5 Membership in CCCE 2.5.1 The initial members of CCCE are the City of San Luis Obispo and the City of Morro Bay. Additional cities or counties may also become initial members of CCCE by executing this Agreement and delivering an executed copy of this Agreement and a copy of the ado pted ordinance required by Public Utilities Code Section 366.2(c)(12) prior to the Effective Date. 2.5.2 Any city or county that is not an initial member may request to become a member of CCCE by submitting a resolution adopted by its City Council or Board of Supervisors to the Board of CCCE. The Board shall review the request and shall vote to approve or disapprove the request by resolution. The Board may establish conditions, including, but not limited, to financial conditions, under which the city or county may become a member of CCCE. The Board shall notify the existing members of CCCE of that request and the date the request will be on the Board’s meeting agenda for action. The date set for Board action shall be at least forty-five (45) days after the date the notice is mailed to the members. If the request is approved by a two-thirds vote of the entire Board, then the Packet Pg. 437 Item 14 Page 4 01181.0001/491349.1 city or county shall become a member of CCCE under the terms and conditions set forth by the Board and upon the adoption of an ordinance required by Public Utilities Code, section 366.2(c)(12) and the approval and execution of this Agreement by the city or county. 2.6 Powers. CCCE shall have all powers common to the Parties and such additional powers accorded to it by law. CCCE is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following powers, subject to the voting requirements set forth in Section 3.8: 2.6.1 Make and enter into contracts; 2.6.2 Employ agents and employees, including but not limited to an Executive Officer and General Counsel; 2.6.3 Acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property; 2.6.4 Lease any property; 2.6.5 Sue and be sued in its own name; 2.6.6 Incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code, section 53850 et seq. or any legal authority under the Act or other laws; 2.6.7 Form other entities if necessary, to carry out energy supply and energy conservation programs or conduct other programs or activities within the powers of CCCE; 2.6.8 Issue revenue bonds and other forms of indebtedness; 2.6.9 Apply for, accept, and receive all licenses, permits, grants, loans or other assistance from any federal, state, or local public agency; 2.6.10 Submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCE Program and other energy programs; 2.6.11 Adopt policies, rules and regulat ions governing the operation of CCCE ; 2.6.12 Make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCE Program and other energy programs; Packet Pg. 438 Item 14 Page 5 01181.0001/491349.1 2.6.13 Designate another entity authorized to be a community choice aggregator to act as the community choice energy aggregator on behalf of CCCE. 2.7 Limitation on Powers. As required by Government Code, section 6509, the power of CCCE is subject to the restrictions upon the manner of exercising power possessed by City of San Luis Obispo. 2.8 Compliance with Local Zoning and Building Laws . Notwithstanding any other provisions of this Agreement or state law, any facilities, buildings or structures located, constructed o r caused to be constructed by CCCE within the territory of CCCE shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities are constructed . ARTICLE 3. GOVERNANCE AND INTERNAL ORGANIZATION 3.1 Board of Directors. CCCE shall be governed by a legislative body known as the a Board of Directors. The initial Board shall consist of two Directors appointed by the governing body of each of the initial Parties. For example, if the initial Parties are the City of San Luis Obispo and the City of Morro Bay, the Board shall consist of four Directors with two Directors appointed by the City Council of San Luis Obispo and two Directors appointed by the City Council of Morro Bay. Each Director shall serve at the pleasure of the governing body of the Party who m appointed such Director, and may be removed as Director by such governing body at any time. If at any time a vacancy occurs on the Board, then a replacement shall be appointed to fill the position of the previo us Director within 45 days after the date that position becomes vacant. Directors must be members of the City Council or Board of Supervisors of a Party to this Agreement. Each Party shall appoint an alternate(s) to serve in the absence of its Director(s ). Alternates may be members of the City Council or Board of Supervisors of the Party or a staff member of the Party. If additional cities or counties join CCCE, as provided in Section 2.5.2, each city or county that becomes a member of CCCE shall be entitled to two Directors who shall be appointed as set forth above. When the fifth member joins CCCE, the number of Directors per Party shall be reduced to one Director per Party; and each Party shall determine which Director shall continue as that Party’s r epresentative on the Board. 3.2 Quorum. A majority of the appointed Directors shall constitute a quorum, except that less than a quorum may adjourn from time to time in accordance with law. 3.3 Powers and Functions of the Board. The Board shall exercise the general governance and legislative powers of CCCE, consistent with this Agreement and applicable law. The Board shall provide general policy guidance on the CCE Program and other energy programs. This Agreement delegates contracting powers and administrative powers and oversight over the operations and activities Packet Pg. 439 Item 14 Page 6 01181.0001/491349.1 of SLO to the Operations Board as further described in Section 3.5. Board of Director approval shall be required for any of the following actions in addition to any other actions specified by this Agreement or required by law: 3.3.1 The issuance of bonds or any other financing even if program revenues are expected to pay for such financing. 3.3.2 The appointment or termination of the Executive Officer and General Counsel. 3.3.3 The appointment or removal of officers described in Section 3.10. 3.3.4 Any decision to provide retirement or post-retirement benefits. 3.3.5 The adoption of the annual budget. 3.3.6 The adoption of an ordinance. 3.3.7 The initiation or resolution of claims and litigation where CCCE will be the plaintiff, petitioner, cross complainant or cross petitioner, or intervenor; provided, however, that the Executive Officer or General Counsel, on behalf of CCCE, may intervene in, become a party to, or file comments with respect to any proceeding pending at the Califo rnia Public Utilities Commission, the Federal Energy Regulatory Commission, or any other administrative agency, without approval of the Board as long as such action is consistent with any adopted Board policies. 3.3.8 The adoption of the Implementation Plan. 3.3.9 The approval of major capital expenditures, excluding power purchases, as defined by Board resolution. 3.3.10 The setting of rates for power sold by CCCE and the setting of charges for any other category of service provided by CCCE. 3.3.11 The approval of new members pursuant to Section 2.5.2. 3.3.12 Termination of the CCE Program. 3.4 Executive Officer. The Board of Directors shall appoint an Executive Officer for CCCE, who shall be responsible for the day-to-day operation and management of CCCE and the CCE Program. The Executive Officer may be retained under contract with CCCE, be an employee of CCCE, or be an employee of one of the Parties. The Executive Officer shall report directly to the Board of Directors and serve as staff to CCCE. The Executive Officer also shall report to and work with the Operations Board on those matters within the jurisdiction of the Operations Board. Except as otherwise set forth in this Agreement, the Executive Officer may exercise all powers of CCCE, including the power to hire, discipline and Packet Pg. 440 Item 14 Page 7 01181.0001/491349.1 terminate employees, as well as the power to approve any agreement if the total amount payable under the agreement is less than $100,000 in any fiscal year, or such higher amount as established by the Board from time to time, by resolution of the Board, except the powers specifically set forth in Section 3.3 or those powers, which by law, must be exercised by the Board of Directors. The Executive Officer shall be responsible for coordinating the actions of the Board of Directors and the Operations Board. The Executive Officer shall serve at the pleasure of the Board of Directors. 3.5 Operations Board. The Operations Board shall consist of the City Manager of each city Party and the Chief Administrative Office or Chief Executive Officer of each county Party. Each Party also may appoint an alternate Director to the Operations Board who shall be a management level employee of the Party. The Operations Board shall provide direction to the Chief Executive Officer on the day-to-day operations of CCCE and shall have the authority to approve and take action on the following matters: 3.5.1 The approval of all contracts and contract amendments except as provided by Section 3.3.9, including, but not limited to, power purchase agreements. 3.5.2 The adoption of personnel rules and regulations. 3.5.3 The adoption of administrative rules and regulations except as provided otherwise by this Agreement. 3.5.4 Any matters referred to the Operations Board by the Board of Directors for study, review, recommendation or final action. 3.6 Commissions, Boards, and Committees. The Board of Directors may establish commissions, boards or committees, including, but not limited to, a standing executive committee and community advisory committee, as the Board deems appropriate, to advise and assist the Board in carrying out its authority and functions under this Agreement and may delegate aut hority to such commission, board or committee as set forth in a Board resolution. Such delegation may be modified, amended or revoked at any time as the Board may deem appropriate. The Board may establish rules, regulations, policies, bylaws or procedure s to govern any such commissions, boards, or committees, and shall determine whether members shall be compensated or entitled to reimbursement for expenses. Any commission, board or committee established by the Board of Directors shall comply with the app licable requirements of the Ralph M. Brown Act. 3.7 Director Compensation. Directors shall serve without compensation from CCCE. However, Directors may be compensated by their respective appointing authorities. The Board, however, may adopt by resolution a policy relating to the reimbursement by CCCE of expenses incurred by Directors. Packet Pg. 441 Item 14 Page 8 01181.0001/491349.1 3.8 Board Voting. Except when a supermajority vote is required by Section 3.8.4, action by the Board of Directors or the Operations Board shall require a majority vote of the total number of Directors of the entire Board; provided, however, that so long as CCCE consists of three or less members, all actions of the Board shall require the affirmative vote of at least one Director appointed by each Party. In addition, as described below in Section 3.8.3, upon request of two Directors, each from a different Party, a weighted vote by shares also will be conducted. When such a request is made, an action must be approved by both a majority vote of Directors present and a majority of the voting shares of the entire Board. No action may be approved solely by a vote by shares. The voting shares of Directors and the requirements for voting by shares shall be as follows: 3.8.1 Voting Shares. Each Party shall have a voting share as determined by the following formula: (Annual Energy Use/Total Annual Energy) multiplied by 100, where (a) “Annual Energy Use” means, (i) with respect to the first two years following the Effective Date, the annual electricity usage, expressed in kilowatt hours (“kWh”), within the Party’s respective jurisdiction and (ii) with respect to the period after the second anniversary of the Effective Date, the annual electricity usage during the prior Fiscal Year, expressed in kWh, of accounts within a Party’s respective jurisdiction that are served by CCCE; and (b) “Total Annual Energy” means the sum of all Parties’ Annual Energy Use. The initial values for Annual E nergy Use will be designated in Exhibit C, and shall be adjusted annually as soon as reasonably practicable after January 1, but no later than March 1 of each year. Those adjustments shall be approved by the Board of Directors. (c) The combined voting share o f all Directors representing a Party shall be based upon the annual electricity usage within the Party’s jurisdiction; the combined voting share of a county shall be based upon the annual electricity usage within the unincorporated area of the county. For the purposes of weighted voting by shares, if a Party has more than one Director on the Board of Directors present and voting, then the voting shares allocated to the entity shall be equally divided amongst its Directors that are present and voting. 3.8.2 Exhibit Showing Voting Shares. The initial voting shares will be set forth in Exhibit D. Exhibit D shall be revised no less than annually, as necessary to account for changes in the number of Parties and changes in Packet Pg. 442 Item 14 Page 9 01181.0001/491349.1 the Parties’ Annual Energy Use. Adjustments to Exhibit D shall be approved by the Board of Directors. 3.8.3 Option for Approval by Voting Shares. Any two Directors, each appointed fro m a different Party, present at a meeting may demand approval of any matter related to the CCE Program shall be determined on the basis of both voting shares and by the affirmative vote of a majority of Directors present at the meeting. If two Directors, each appointed from a different Party, make such a demand with respect to approval of any such matter, then approval of such matter shall require the affirmative vote of a majority of Directors present at the meeting and the affirmative vote of Directors having a majority of the voting shares of the entire Boardt. In the event any one Party has a voting share that equals or exceeds that which is necessary to disapprove the matter being voted on by the Board, at least one other Party shall be required to vote in the negative in order to disapprove such matter. 3.8.4 Special Voting Requirements for Certain Matters. (a) Two-Thirds and Weighted Voting Approval Requirements Relating to Specified Actions. Action of the Board on the matters set forth in Section 2.5.2 (approval of new members), 6.2 (involuntary termination of a Party), or Section 7.4 (amendment of this Agreement) or the approval of any bonds, loans or other indebtedness shall require the affirmative vote of at least two - thirds of the Directors of the entire Board. Notwithstanding the foregoing, any two Directors present at the meeting, each appointed from a different Party, may demand that the vote be determined on the basis of both voting shares and by the affirmative vote of Directors, and if any two Directors, each appointed from a different Party, makes such a demand, then approval shall require the affirmative vote of both at least two - thirds of the Directors on the entire Board and the affirmative vote of Directors having at least two -thirds of the voting shares of the entire Board, as determined by Section 3.8; but, Directors from at least two Parties must vote against a matter for the vote to fail. On votes to involuntarily terminate a Party under Section 6.2, the Director(s) for the Party subject to involuntary termination may not vote, and the number of Directors constituting two-thirds of all Directors, and the weighted vote of each Party shall be recalculated as if the Party subject to possible termination were not a Party. (b) Seventy-Five Percent Special Voting Requirement for Eminent Domain . (i) A decision to exercise the power of eminent domain on behalf of CCCE to acquire any property interest other than Packet Pg. 443 Item 14 Page 10 01181.0001/491349.1 an easement, right -of-way, or temporary construction easement shall require a vote of at least 75% of all the members of the Board of Directors. (ii) Notwithstanding the foregoing, any two Directors present at the meeting, each appointed by a different Party, may demand a vote under subsection (i) be determined on the basis of voting shares and by the affir mative vote of Directors, and if any two Directors, each appointed from a different Party, makes such a demand, then approval shall require both the affirmative vote of at least 75% of the entire Directors on the Board and the affirmative vote of Directors having at least 75% of the voting shares of the entire Board, but Directors from at least two Parties must vote against a matter for the vote to fail. 3.9 Regular and Special Meetings of the Boards. The Board of Directors and Operations Board shall hold the number of regular meetings provided by resolution of each Board. The date, hour and place of each regular meeting shall be fixed by resolution of each Board. Regular meetings may be adjourned to another meeting time. Special and emergency meetings of the Boards may be called in accordance with the provisions of California Government Code , sections 54956 and 54956.5. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law. All meetings shall be conducted in accordance with the provisions of the Ralph M. Brown Act (California Government Code, sections 54950 et seq.). 3.10 Selection of Board Officers. 3.10.1 Chair and Vice Chair. The Directors shall select, from among themselves, a Chair, who shall be the presiding officer of all Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The Chair and Vice Chair shall each serve for a one-year term at the pleasure of the Board. There shall be no limit on the number of terms held by either the Chair or Vice Chair. The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if: (a) the person serving dies, resigns, or the Party the person represents removes the person as its representative on the Board, or (b) the Party that he or she represents withdraws from CCCE pursuant to the provisions of this Agreement. 3.10.2 Secretary. The Board of Directors shall appoint a Secretary who shall be responsible for keeping the minutes of all meetings of the Board and all other official records of CCCE. Packet Pg. 444 Item 14 Page 11 01181.0001/491349.1 3.10.3 Treasurer and Auditor. The Board of Directors shall appoint a Treasurer who shall function as the combined offices of Treasurer and Auditor pursuant to Government Code section 6505.6 and shall strictly comply with the statutes related to the duties and responsibilities specified in Section 6505.5 of the Act. The Treasurer for CCCE shall be the depository and have custody of all money of CCCE from whatever source and shall draw all warrants and pay demands against CCCE as approved by the Board. The Treasurer shall cause an independent audit(s) of the finances of CCCE to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall report directly to the Board of Directors and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time. The duties and obligations of the Treasurer are further specified in Article 5. The Treasurer shall serve at the pleasure of the Board of Directors. 3.11 Administrative Services Provider. The Operations Board may appoint one or more administrative services providers to serve as CCCE’s agent for planning, implementing, operating and administering the CCE Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. One or more of the Parties may agree to provide all or a portion of the services in the manner set forth in an Administrative Services Agreement. Employees of the Parties utilized to perform such services shall remain employees of the Parties and subject to the employing Party’s control and supervision. An Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all or enumerated tasks necessary for planning, implementing, operating and administering the CCE Program and other approved programs. The Administrative Services Agreement shall set forth the term of this Agreement, the services to be provided, and the circumstances under which the Administrative Services Agreement may be terminated by CCCE. This section shall not in any way be construed to limit the discretion of CCCE to hire its own employees to administer the CCE Program or any other program. ARTICLE 4. IMPLEMENTATION ACTION AND CCCE DOCUMENTS 4.1 Preliminary Implementation of the CCE Program. 4.1.1 Enabling ordinance. To be eligible to participate in the CCE Program, each Party must adopt an ordinance in accordance with Public Utilities Code section 366.2(c)(12) for the purpose of specifying the Party intends to implement a CCE program by and through its participation in CCCE. Packet Pg. 445 Item 14 Page 12 01181.0001/491349.1 4.1.2 Implementation Plan. CCCE shall cause to be prepared an Implementation Plan meeting the requirements of Public Utilities Code , section 366.2 and any applicable Public Utilities Commission regulations, as soon after the Effective Date as reasonably practicable. The Implementation Plan shall not be filed with the Public Utilities Commission until it is approved by the Board of Directors. 4.1.3 Integrated Resource Plan. CCCE shall cause to be prepared an Integrated Resource Plan in accordance with CPUC regulations that will ensure the long-term development and administration of a variety of power resources in compliance with the State Renewable Portfolio Standard and other statutory and regulatory requirements of the State of California. 4.1.4 Termination of CCE Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of CCCE to terminate the implementation or operation of the CCE Program at any time in accordance with any applicable requirements of state law. 4.2 CCCE Documents. The Parties acknowledge and agree the affairs of CCCE will be implemented through various documents duly adopted by the Board of Directors or Operations Board through Board resolution or minute action; provided, that any Operations Board actions must be consistent with the polices established by the Board of Directors. The Parties agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board, subject to the Parties’ right to withdraw from CCCE as described in Article 6. ARTICLE 5. FINANCIAL PROVISIONS 5.1 Fiscal Year. CCCE’s fiscal year shall be 12 months commencing July 1 and ending June 30. The fiscal year may be changed by resolution of the Board of Directors. 5.2 Depository. 5.2.1 All funds of CCCE shall be held in separate accounts in the name of CCCE and not commingled with funds of any Party or any other person or entity. 5.2.2 All funds of CCCE shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of CCCE shall be open to inspection by the Parties at all reasonable times. The Board of Directors shall contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of CCCE, which shall be conducted in accordance with the requirements of Section 6505 of the Act. Packet Pg. 446 Item 14 Page 13 01181.0001/491349.1 5.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its policies, rules and regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board. 5.3 Budget and Recovery of Costs. 5.3.1 Budget. The initial budget shall be approved by the Board of Directors. The Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of CCCE shall be approved by the Board of Directors. 5.3.2 Funding of Initial Costs. In the event the CCE Program becomes operational, any Initial Costs paid by the Parties shall be included in the customer charges for electric services as provided by Sect ion 5.3.3 to the extent recovery of such costs is permitted by law, and the Parties shall be reimbursed from the payment of such charges by customers of CCCE. Prior to such reimbursement, the Parties shall provide such documentation of costs paid as the Board may request. CCCE may establish a reasonable time period over which such costs are recovered. In the event the CCE Program does not become operational, the Parties who had contributed Initial Costs shall not be entitled to any reimbursement fro m CCCE or any other Party. If any Party assists in funding initial costs, then that Party shall also be entitled to reimbursement pursuant to this section. 5.3.3 CCE Program Costs. The Parties desire all costs incurred by CCCE that are directly or indirectly attributable to the provision of electric, conservation, efficiency, incentives, financing, or other services provided under the CCE Program, including, but not limited to, the establishment and maintenance of various reser ves and performance funds and administrative, accounting, legal, consulting, and other similar costs, shall be recovered through charges to CCE customers receiving such electric services, or from revenues from grants or other third-party sources. 5.3.4 Additional Contributions and Advances. Pursuant to Government Code section 6504, the Parties may, in their sole discretion, make financial contributions, loans or advances to CCCE for the purposes of CCCE set forth in this Agreement. The repayment of such contributions, loans or advances will be on the written terms agreed to by the Party making the contribution, loan or advance to the CCCE. ARTICLE 6. WITHDRAWAL AND TERMINATION 6.1 Withdrawal Provisions. Packet Pg. 447 Item 14 Page 14 01181.0001/491349.1 6.1.1 General Right to Withdraw. A Party may withdraw its membership in CCCE, effective as of the beginning of CCCE ’s fiscal year, by giving no less than 6-months’ advance written notice of its election to do so, which notice shall be given to CCCE and each Party. Withdrawal of a Party shall require an affirmative vote of the Party’s governing body. 6.1.2 Right to Withdraw After Amendment . Notwithstanding Section 6.1.1, a Party may withdraw its membership in CCCE following an amendment to this Agreement adopted by the Board of Directors which the Party’s Director(s) voted against ; provided,that such notice is given in writing within thirty (30) days following the date of the vote. Withdrawal of a Party under this section shall require an affirmative vote of the Party’s governing body and shall not be subject to the six-month advance notice provided in Section 6.1.1. In the event of such withdrawal, the Party shall be subject to the provisions of Section 6.3. 6.1.3 The Right to Withdraw Prior to Program Launch. After receiving bids from power suppliers before the CCE Program launch, CCCE shall provide to the Parties a report from the consultant retained by CCCE that compares the total estimated electrical rates that CCCE will be charging to customers as well as the estimated greenhouse gas emissions rat e and the amount of estimated renewable energy used with that of the incumbent utility. If the report finds that any one of the following conditions exists, then a Party may immediately withdraw its membership in CCCE without any financial obligation, as long as the Party provides written notice of its intent to withdraw to CCCE Board of Directors no more than fifteen (15) days after receiving the report. Those conditions include: 1) the CCCE is unable to provide total electrical rates that are equal to o r less than the incumbent utility at time of program launch, 2) the CCCE is unable to provide electricity that has equal or lower greenhouse gas emissions than the incumbent utility, and 3) the CCCE is not able to match or exceed the incumbent utility’s renewable energy performance pursuant to the State Renewable Portfolio Standard. Any Party that withdraws from CCCE pursuant to this section shall not be entitled to any refund of the Initial Costs it has paid to CCCE prior to the date of withdrawal unless CCCE is later terminated pursuant to Section 6.4. In such event, any Initial Costs not expended by CCCE shall be returned to all Parties, including any Party that has withdrawn pursuant to this section, in proportion to the contribution that each made. Notwithstanding anything to the contrary in this Agreement, any Party that withdraws pursuant to this section shall not be responsible for any liabilities or obligations of CCCE after the date of withdrawal, including without limitation any liability arising from power purchase agreements entered into by CCCE. 6.1.4 Withdrawal Documents. Except as provided by Section 6.1.3, a Party that withdraws its participation in the CCE Program may be subject to certain Packet Pg. 448 Item 14 Page 15 01181.0001/491349.1 continuing financial obligations, as described in Sect ion 6.3. Each withdrawing Party and CCCE shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from par ticipation in the CCE Program. 6.2 Involuntary Termination of a Party. Participation of a Party in the CCE Program may be terminated for material non-compliance with provisions of this Agreement or any other agreement relating to the Party’s participation in the CCE Program upon a vote of Board members as provided in Section 3.8.4(a). Prior to any vote to terminate participation with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least thirty (30) days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular prov isions of this Agreement or other agreement that the Party has allegedly violated. The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its participation in the CCE Program terminated shall be subject to in the provisions of Section 6.3. 6.3 Continuing Financial Obligations; Refund. Except as provided by Section 6.1.3, upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or other financial obligations arising from the Party membership or participation in the CCE Program through the date of its withdrawal or involuntary termination, subject to the provisions of Section 2.2. Thereafter, notwithstanding Section 2.2, the withdrawing or terminated Party shall be responsible and liable for any damages, losses or costs incurred by CCCE resulting from the Party’s withdrawal including, but are not limited to, losses from the resale of power contracted for by CCCE to serve the Party’s load. With respect to such financial obligations, upon notice by a Party that it wishes to withdraw from the CCE Program, CCCE shall notify the Party of the minimum waiting period under which the Party would have no costs for withdrawal if the Party agrees to stay in the CCE Program for such period. The waiting period will be set to the minimum duration required so no costs are transferred to remaining ratepayers. If the Party elects to withdraw before the end of the minimum waiting period, then the charge for withdrawal shall be set at a dollar amount that would offset the estimated losses to CCCE and costs to the remaining ratepayers, and may not include punitive charges that exceed actual costs. For the purposes of this section, actual costs shall include not only any financial losses or increased operating costs incurred by CCCE, but also all staff time and consultant costs related to the withdrawal. CCCE may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with CCCE, as reasonably determined by and approved by the Board of Directors, to cover the Party’s financial obligat ions for the costs described above. Any amount of the Party’s funds held on deposit with CCCE above that which is Packet Pg. 449 Item 14 Page 16 01181.0001/491349.1 required to pay any financial obligations shall be returned to the Party. If there is a disagreement related to the charge(s) for withdrawal or exiting, then the Parties shall attempt to settle the amount through mediation or other dispute resolution process as authorized by Section 7.1. If the dispute is not resolved, then the Parties may agree in writing to proceed to arbitration, or any party may seek judicial review. 6.4 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its participation in the CCE Program, as described in Section 6.1. 6.5 Disposition of Property upon Termination of CCCE. Upon termination of this Agreement, any surplus money or assets in possession of CCCE for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Parties in proportion to the contributions made by each. ARTICLE 7. MISCELLANEOUS PROVISIONS 7.1 Dispute Resolution. The Parties and CCCE shall make reasonable efforts to informally settle all disputes arising out of or in connection with this Agreement. Before exercising any remedy provided by law, a Party or Parties and CCCE shall engage in nonbinding mediation or arbitration in the manner agreed upon by the Party or Parties and CCCE. In the event nonbinding mediation or arbitration is not commenced or does not result in the settlement of a dispute within 120 days after the demand for nonbinding mediation or arbitration is made, the Party or Parties and CCCE may pursue any remedy provided by law. 7.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees of CCCE shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee. CCCE shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code section 995 et seq. Nothing in this section shall be construed to limit the defenses and immunities available under the law, to the Parties, CCCE, or its Directors, officers, or employees. 7.3 Indemnification of Parties. CCCE shall acquire such insurance coverage as is necessary to protect the interests of CCCE, the Parties, and the public. CCCE shall defend, indemnify, and hold harmless the Parties and each of their respective Council and Board of Supervisors Members, officers, officials, agents and employees, from any and all claims, losses, damages, costs, injuries, and Packet Pg. 450 Item 14 Page 17 01181.0001/491349.1 liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of CCCE under this Agreement. 7.4 Amendment of this Agreement . This Agreement may not be amended except by a written amendment approved by the Board of Directors as provided in Section 3.8.4(a). CCCE shall provide written notice to all Parties of amendments to this Agreement, including the effective date of such amendments, at least 30 days prior to the date upon which the Board votes on such amendments. 7.5 Assignment . Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section 7.5 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties. This Section 7.5 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regard ing the financing of that Party’s contributions to CCCE, or the disposition of proceeds which that Party receives under this Agreement, so lo ng as such independent agreement does not affect, or purport to affect, the rights and duties of CCCE or the Parties under this Agreement. 7.6 Severability. If one or more clauses, sentences, paragraphs or provisions of this Agreement shall be held to be unlawful, invalid or unenforceable, then it is hereby agreed by the Parties, the remainder of this Agreement shall not be affected thereby. Such clauses, sentences, paragraphs or provision shall be deemed reformed so as to be lawful, valid and enforced to the maximum extent possible. 7.7 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, to effectuate the purposes and intent of this Agreement. 7.8 Execution by Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument . Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having at tached to it one or more signature pages. 7.9 Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given if served in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service. Notices given (a) personally or by courier service shall be conclusively deemed received at the time of delivery and receipt and (b) by mail shall be conclusively deemed given 48 hours after the deposit thereof (excluding Saturdays, Sundays and holidays) if Packet Pg. 451 Item 14 Page 18 01181.0001/491349.1 the sender receives the return receipt. All notices shall be addressed to the office of the clerk or secretary of CCCE or Party, as the case may be, or such other person designated in writing by CCCE or Party. Notices given to one Party shall be copied to all other Parties. Notices given to CCCE shall be copied to all Parties. [Signatures on next page] Packet Pg. 452 Item 14 Page 19 01181.0001/491349.1 CITY OF SAN LUIS OBISPO, a California municipal corporation By: ______________________________ (Insert name), Mayor ATTEST By: ____________________________ (Insert name), City Clerk APPROVED AS TO FORM: By: ____________________________ (Insert name), City Attorney CITY OF MORRO BAY, a California municipal corporation By: ____________________________ (Insert name), Mayor ATTEST _____________________________ (Insert name), City Clerk APPROVED AS TO FORM _____________________________ (Insert Name), City Attorney Packet Pg. 453 Item 14 Page 1 01181.0001/491349.1 EXHIBIT A DEFINITIONS “Act ” means the Joint Exercise of Powers Act of the State of California (Government Code section 6500 et seq.) “Administrative Services Agreement ” means an agreement or agreements entered into after the Effective Date by CCCE with an entity that will perform tasks necessary for planning, implementing, operating and/or administering the CCE Program, or any portion of the CCE Program or any other energy programs adopted by CCCE. “Agreement ” means this Joint Powers Agreement. “Annual Energy Use ” has the meaning given in Section 3.7.1. “Board” means the Board of Directors of CCCE unless the context indicates that the use of the word “Board” also is intended to include the Operations Board . “CCE” or “Community Choice Energy” or “CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCE Program” or “CCA Program” means CCCE ’s program relating to CCE that is principally described in Sections 2.3, 2.4, and 4.1. “Director” means a member of the Board of Directors or the Operations Board representing a Party. “Effective Date” means the date on which this Agreement shall become effective and CCCE shall exist as a separate public agency, as described in Section 2.1. “Implementation Plan” means the plan generally described in Section 4.1.2 of this Agreement that is required under Public Utilities Code section 366.2 to be filed with the California Public Utilities Commission for the purpose of describing a proposed CCE Program. “Initial Costs” means all costs incurred by Parties and/or CCCE relating to the establishment and initial operation of CCCE, such as the hiring of an Executive Officer and any administrative staff, and any required accounting, administrative, technical, or legal services in support of CCCE’s initial activities or in support of the negotiation, preparation, and approval of one or more Administrative Services Agreements, Power Purchase Agreements, or financing transactions. Operations Board means the Board established by Section 3.5. “Parties” or “Members” means, collectively, the City of San Luis Obispo and the City of Morro Bay and any other city or county which timely executes this Agreement pursuant to Section 2.5.1 or is added to this Agreement pursuant to Section 2.5.2 and is listed in Exhibit B . Packet Pg. 454 Item 14 Page 2 01181.0001/491349.1 “Party,” “Member” or “Member Agency” means a signatory to this Agreement. “Total Annual Energy” has the meaning given in Section 3.7.1. “CCCE Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions, and activities of CCCE, including but not limited to the annual budget, rules, regulations, plans and policies. Packet Pg. 455 Item 14 Page 3 01181.0001/491349.1 EXHIBIT B LIST OF PARTIES Packet Pg. 456 Item 14 Page 1 Exhibit C Page 1 of 1 01181.0001/491349.1 EXHIBIT C ANNUAL ENERGY USE/VOTING SHARES City of San Luis Obispo 237,472 MWh City of Morrow Bay 45,882 MWh Packet Pg. 457 Item 14 Page 1 Exhibit D Page 1 of 1 01181.0001/491349.1 EXHIBIT D VOTING SHARES City of San Luis Obispo 84 City of Morrow Bay 16 Packet Pg. 458 Item 14 Page 1 Exhibit E Page 1 of 1 01181.0001/491349.1 EXHIBIT E SIGNATURE PAGES Packet Pg. 459 Item 14 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE JOINT POWERS AGREEMENT ESTABLISHING CENTRAL COAST COMMUNITY ENERGY ON BEHALF OF THE CITY OF SAN LUIS OBISPO. WHEREAS, AB 117, adopted as California state law in 2002, permits cities, counties, or Joint Power Authorities comprised of cities and counties to aggregate residential, commercial, industrial, municipal and institutional electric loads through Community C hoice Aggregation (CCA); and WHEREAS, the City of San Luis Obispo commissioned a technical study to analyze the feasibility of a CCA program serving the City and the San Luis Obispo region; and WHEREAS, the City of San Luis Obispo wishes to be a communit y choice aggregator and has introduced the Ordinance required by Public Utilities Code Section 366.2 in order to do so; and WHEREAS, the City of Morro Bay also wishes to be a community choice aggregator and will also introduce the Ordinance as required by Public Utilities Code Section 366.2; and WHEREAS, pursuant to Section 366.2 two or more entities authorized to be a community choice aggregator may participate as a group in a community choice aggregation program through a joint powers agency established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, if each entity adopts the aforementioned ordinance; and WHEREAS, the City Council has considered the proposed Joint Exercise of Powers Agreement, a draft of which is attached hereto as Exhibit A, under which the City of San Luis Obispo and City of Morro Bay will become the initial members of Central Coast Community Energy (CCCE) Authority; and WHEREAS, once the California Public Utilities Commission certifies the Implementation Plan created by CCCE, it will provide service to customers within the cities and counties that choose to join CCCE and to participate in the CCA program; and WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt - out of the CCE program and continue to receive service from the incumbent utility. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that : SECTION 1. The City Council hereby approves the Joint Exercise of Powers Agreement attached hereto as Exhibit A to form the Central Coast Community Energy (CCCE) Authority. Packet Pg. 460 Item 14 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 2. That_______________ and _______________ are hereby appointed as the initial Directors on the CCCE Board of Directors representing the City of San Luis Obispo. SECTION 3. This resolution and the establishment of the Central Coast Community Energy Authority is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, as it is not a “project” since this action involves organizational and administrative activities of government that will not result in direct or indire ct physical changes in the environment. (14 Cal. Code Regs. § 15378(b)(5)). Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3)). A Notice of Exemption shall be filed as authorized by CEQA and the State CEQA guidelines. SECTION 4. This resolution shall be effective upon the adoption of Ordinance No. ______, an Ordinance of the City of San Luis Obispo authorizing the implementation of a Community Choice Aggregation (CCA) Program. BE IT FURTHER RESOLVED that the Mayor and/or City Manager is hereby authorized and directed to execute the Joint Exercise of Powers Agreement on behalf of the City of San Luis Obispo, which will establish CCCE with the City as a founding member. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: Packet Pg. 461 Item 14 Resolution No. _____ (2018 Series) Page 3 R ______ _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 462 Item 14 Meeting Date: 9/18/2018 FROM: Derek Johnson, City Manager Prepared By: Robert A. Hill, Interim Deputy Director, Office of Sustainability SUBJECT: MIOSSI BROTHERS LA CUESTA RANCH OPEN SPACE ACQUISITION RECOMMENDATION Approve a Resolution (Attachment A): 1. Authorizing the acquisition in fee simple title of approximately 266 acres of unimproved real property that is a portion of the Miossi Brothers La Cuesta Ranch, located in unincorporated San Luis Obispo County, for open space conservation and passive recreation purposes (Attachment B); and 2. Authorizing the expenditure of $1,000,000, plus ancillary closing costs, from the City of San Luis Obispo’s Open Space Acquisition Funds towards the purchase of the property; and 3. Authorizing the use of $200,000 from the City of San Luis Obispo’s Open Space Acquisition Funds, if needed, that will be reimbursed by the State of California’s Habitat Conservation Fund pursuant to the terms of that Grant Agreement; and 4. Authorizing the acceptance of a donation of $100,000 from the Forbes Family via The Community Foundation of San Luis Obispo County in accordance with the City’s Donation Acceptance Policy; and 5. Authorizing the Mayor to execute a Certificate of Acceptance for the real property interest concurrent with the close of escrow for said transaction, and the City Manager to execute any and all documents necessary to consummate the transaction ; and 6. Authorizing the Mayor to execute a Deed Restriction, Access Easement Agreement, Telecommunications Easement Agreement , and a Grazing Lease in forms subject to the approval of the City Attorney. DISCUSSION Background The Miossi family originally immigrated to the United States from the Canton Ticino, Switzerland, from 1864 to 1870 and finally settled in San Luis Obispo County with the establishment o f the La Cuesta Ranch in 1917, among other ranch holdings in the area. The third and fourth generations of the family continue to operate and steward the land, and desire to maintain the agricultural and open space condition of the property. With prior City Council direction, staff has been in continual dialogue with the Miossi family for over five years, resulting in the completion of a purchase and sale agreement in March 2018. Packet Pg. 463 Item 15 The purchase and sale agreement provides for the fee simple acquisition of a 266-acre portion of the Miossi Brothers La Cuesta Ranch, located at the headwaters of San Luis Obispo Creek in the northern portion of the City’s Greenbelt. The purchase and sale agreement also anticipates, through its recitals, the completion of a conservation easement in the future for most of the balance of the nearly 1,400-acre ranch that the City and Miossi family will work on as a subsequent “phase II” project. Conservation Values and Project Benefits The Cuesta Canyon area has been a long-standing priority for the City’s Greenbelt conservation efforts since at least 1995 (e.g. A Vision for Sustainability in San Luis Obispo: Recommendations of the Environmental Quality Task Force and the series of Saving Special Places reports). The subject property represents the keystone piece of the conservation vision set forth for the Cuesta Canyon area to protect this area’s rich biodiversity and the headwaters of San Luis Obispo Creek at a landscape level. Permanent protection of the property would pr ovide recovery benefits to a suite of rare plants and vegetative assemblages, as well as known habitat and migration corridors for steelhead trout, mountain lion, and California black bear. The acquisition will also allow for linking passive recreation trails connecting Poly Canyon to the West Cuesta Ridge area where outstanding views of the Pacific Ocean can be gained and enjoyed. In the time leading up to the City’s purchase agreement, a portion of the land to be acquired by the City had been listed for sale on the open market. A sale to another private buyer could potentially have led to the development of the three legal lots within the subject property, each with recorded certificates of compliance, as rural-ranchettes. General Plan Conformity California Government Code Section 65402 requires that the Planning Commission make a finding that an acquisition of real property for open space purposes, such as contemplated herein, conforms with the City’s General Plan. The Planning Commission met on Augu st 22, 2018 to review and consider this item, and found that the proposed acquisition is consistent with goals, programs, and policies found in the Conservation and Open Space Element (COSE) of the City’s General Plan, including: COSE Goal 8.1: Secure and maintain a healthy and attractive Greenbelt around the urban area, comprised of diverse and connected natural habitats, and productive agricultural land that reflects the City’s watershed and topographic boundaries. COSE Program 8.7.1(D): Protect Open Space Resources. The City will take the following actions to protect open space, and will encourage individuals, organizations, and other agencies to take the same actions within their areas of responsibility and jurisdiction: D. Acquire land and interests in land for open space, pursuant to City Open Space Guidelines and acquisition priorities. COSE Policy 9.1.1 (A): Preserve natural and agricultural landscapes. The City will implement the following policies and will encourage other agencies with jurisdiction to do likewise: A. Natural and agricultural landscapes that the City has not designated for urban use shall be maintained in their current patterns of use. Packet Pg. 464 Item 15 Transaction Details The City has entered into a purchase and sale agreement with Miossi Brot hers La Cuesta Ranch, Inc. for the purchase of the 266-acre property interest. The purchase and sale agreement has a six-month term, and the parties have entered into an escrow that is set to close on or about September 26, 2018, should Council approve the recommendation. The agreed upon purchase price is $1,300,000, which is the appraised value for the property interest. The appraisal was completed for the City by the firm Schenberger, Taylor, McCormick, and Jecker (STM&J) as of February 12, 2018. The City also secured a third-party appraisal review prepared by Hawkes Real Estate Appraisal, which concludes that STM&J’s “…report is complete, consistent, and adequate, meeting all of the relevant standards, and that the opinions of value are valid and re liable.” Additional purchase and sale agreement terms that were considered as part of the appraisal evaluation include the following rights that will be retained by the sellers: 1.) an access easement through the property for emergency and maintenance pur poses consistent with historic uses; 2.) an easement and leasehold rights to an existing cellular telecommunications facility located on a small corner of the property; and, 3.) the lease -back of grazing rights for a period of ten years, with option to renew. The City has also agreed to install new fencing and gates on the south side of the property prior to opening the land to the public to prevent trespass to the remaining portion of the Miossi Brothers La Cuesta Ranch. The layered funding strategy for the project relies on existing City Open Space Acquisition Funds that have attract ed two other funding accommodations, as follows: Project Funding Sources Status Amount City of San Luis Obispo, Open Space Acquisition Funds, Local Revenue Measure Budgeted $1,000,000 State of California, Habitat Conservation Fund, Grant In contract $200,000 Forbes Family, Private Donation Awarded $100,000 TOTAL $1,300,000 The City Council authorized the Habitat Conservation Fund (HCF) grant application and Grant Agreement with the State of California on September 15, 2015 via Resolution No. 10665 (2015 Series). The HCF grant program is administered by the California Department of Parks and Recreation’s Office of Grants and Local Services. An important condition of t he HCF Grant Agreement is that the City shall record a permanent Deed Restriction concurrent with the Grant Deed by which the City will take title to the property that will ensure the conservation purposes of the HCF grant under the California Wildlife Protection Act of 1990. Funds for HCF acquisition projects are typically disbursed directly to escrow in accordance with their published Grant Administration Guidelines (2012), although City staff understands from their program staff that there is a possibility, due to their staffing resources and timing considerations, that the City may need to provide bridge funding in the amount of $200,000 to complete the transaction until reimbursement is received from the State of California as obligated under the Grant Agreement. As an abundance of caution, staff is seeking authority to provide th is bridge funding accommodation as part of the recommendation. Packet Pg. 465 Item 15 The City is also exceptionally fortunate to be receiving a charitable donation of $100,000 from the Forbes Family, which will be facilitated by The Community Foundation of San Luis Obispo County. This level of private philanthropy is considered by staff to be a strong testament to how deeply citizens within the community value and cherish the City’s Greenbelt Pr otection Program. The acceptance of a gift of this size requires City Council approval under the City’s Donation Policy found in the Financial Management Manual, Section 760, and adopted by City Council Resolution No. 8965 (1999 Series); staff is seeking authority to receive this donation as part of the recommendation. The Greenbelt Protection Program has a long history of matching City funds with other grants and private donations for voluntary transactions, as well as dedications of land as conditions of approval associated with land use entitlements. In the past two years since staff has reported to the City Council on the status of the City’s Greenbelt , new additions including the subject are as follows: Property Acreage City Funds Grants / Donations Total Value Waddell Ranch 154 $100,000 $1,000,000 $1,100,000 South Hills, MASP 1 71 - $177,500 $177,500 Righetti Hill, OASP2 40 - $100,000 $100,000 Miossi La Cuesta Ranch 266 $1,000,000 $300,000 $1,300,000 TOTAL 531 $1,100,000 $1,577,500 $2,677,500 Due Diligence and Title Review A Phase I Environmental Site Assessment (ESA) was completed for the City by the firm Haro Environmental as of June 8, 2018. The purpose of seeking a Phase I ESA is conduct due diligence relative to potential liability t o the City as the prospective property owner under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and other applicable environmental law. No “Recognized Environmental Concerns” (RECs) were found, and the report concludes, “Because we have no evidence indicating that the Site has been impacted by hazardous materials or petroleum products, no additional assessment appears warranted at this time.” The City has also received and reviewed a Preliminary Title Report for the property from First American Title as of March 21, 2018 and has determined that there are no liens, judgements, defaults, or exceptions to fee simple title that represent a title defect that would be legally problematic or prior easements that would be deleterious to the conservation values and purposes of the acquisition. Notable prior easements include easements for Stagecoach Road, U.S. 101, telecommunications, and both natural gas and petroleum pipelines. Both the appraisal and the Phase I ESA evaluated and considered these easements in their findings and conclusions. CONCURRENCE The City Attorney’s Office has reviewed the transaction and documentation described herein and concurs with the recommendation. 1 Margarita Area Specific Plan (MASP), Tract 2428. Base donation value of $2,500 per acre. 2 Orcutt Area Specific Plan (OASP), Tract 3063. Base donation value of $2,500 per acre. Packet Pg. 466 Item 15 ENVIRONMENTAL REVIEW Acquisition of the subject property is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) because it involves “acquisition of lands for fish and wildlife conservation purposes including (a) preservation of fish and wildlife hab itat… and (c) preserving access to public lands and waters where the purpose of the acquisition is to preserve the land in its natural condition” (§15313), and because it involves the “acceptance of … fee interests in order to maintain the open space chara cter of the area” (§15317). Once acquired, it is anticipated that Natural Resources Program staff will prepare a Conservation Plan consistent with the Conservation and Open Space Element of the City’s General Plan (2006), the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002), and the City’s Open Space Regulations (San Luis Obispo Municipal Code, chapter 12.22). An environmental review and determination will be conducted prior to any management activities or property improve ments that would constitute a Project under CEQA definitions (§21065). FISCAL IMPACT Sufficient funds for the City’s portion of the transaction in the amount of $1,000,000 are available in the following sources: City Funding Sources Available Remaining Local Revenue Measure – Open Space CIP $427,093 $0 Open Space Protection Fund CIP – Land Acquisition $290,000 $0 Open Space Protection Fund – Fund Balance3 $594,643 $311,736 TOTAL $1,311,736 $311,736 Long-term operating and maintenance costs are expected to be relatively modest, and the property would be incorporated into the City’s existing maintenance regime articulated in the Open Space Maintenance Plan (2015) and implemented by the City’s Ranger Service. As the subject property is located in unincorporated San Luis Obispo County, the City would be subject to annual property tax, albeit at a restricted property tax rate due to the deed restrictions required by the HCF Grant Agreement that will ensure the property remains in open space uses. P roperty taxes for City-owned open space lands located in the County of San Luis Obispo are handled through the Natural Resources Program’s operating budget. Longer -term property improvements and enhancements would be developed in detail through the Conservation Plan process and included in future two -year Financial Plans for City Council consideration. 3 Remaining funds include in -lieu fees collected as part of the Airport Area Specific Plan (AASP) fee program that are designated for that purpose. Packet Pg. 467 Item 15 ALTERNATIVES The City Council could: 1. Request additional information or clarification from staff prior to taking action on the recommendation. 2. Continue the item with specific direction if more information or discussion time is required before taking action, although this is not recommended as the transaction described herein is consistent with prior City Council direction and there are time sensitivities associated with the expected close of escrow on or about September 26, 2018. 3. Deny the recommendation. Attachments: a - City Council Resolution b - Acquisition Maps Packet Pg. 468 Item 15 R ______ RESOLUTION NO. ________ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA AUTHORIZING THE ACQUISITION OF A PORTION OF THE MIOSSI BROTHERS LA CUESTA RANCH PROPERTY IDENTIFIED AS ASSESSOR PARCEL NOS. 070-241-013; 073-231-008; 073-271-013; AND 073-341-003 (PORTION) TOTALING APPROXIMATELY 266 ACRES IN UNINCORPORATED SAN LUIS OBISPO COUNTY WHEREAS, the City of San Luis Obispo has adopted policies for protection, management, and public use of open space lands in the Conservation and Open Space Element of the City of San Luis Obispo’s General Plan, and on August 22, 2018 the City’s Planning Commission made General Plan Consistency Determination pursuant to Government Code Section 65042; and WHEREAS, the City of San Luis Obispo manages twelve open space areas totaling approximately 3,750 acres, and now desires to acquire an approximately 266-acre portion of the Miossi Brothers La Cuesta Ranch for permanent open space conservation and passive recreation purposes; and WHEREAS, the fair market value for the 266-acre property interest as of February 12, 2018 is $1,300,000, as determined by an Appraisal Report prepared by the firm Schenberger, Taylor, McCormick & Jecker; and WHEREAS, the City of San Luis Obispo has reached an agreement to purchase the property from the seller, Miossi Brothers La Cuesta Ranch, who will sell the property to the City of San Luis Obispo for the appraised fair market value; and WHEREAS, the City of San Luis Obispo has Open Space Acquisition Funds in the amount of $1,000,000 and will have successfully received grant funding from the State of California’s Habitat Conservation Fund in the amount of $200,000 and a charitable donation of $100,000 from the Forbes Family in order to consummate the transaction. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: 1. Finds that acquisition of the 266-acre portion of the Miossi Brothers La Cuesta Ranch is exempt from the provisions of the California Environmental Quality Act because it involves “acquisition of lands for fish and wildlife conservation purposes including (a) preservation of fish and wildlife habitat… and (c) preserving access to public lands and waters where the purpose of the acquisition is to preserve the land in its natural condition” (§15313), as well as because it involves the “acceptance of … fee interests in order to maintain the open space character of the area” (§15317); 2. Finds that the subject property possesses high ecological and habitat value; Packet Pg. 469 Item 15 Resolution No. _____ (2018 Series) Page 2 R ______ 3. Finds that the use of referenced City funds, grant funds, and donated funds for acquisition of the subject property is an appropriate expenditure; 4. Adopts the Council Agenda Report and Recommendation for this item; 5. Authorizes the acquisition in fee simple title of approximately 266 acres of unimproved real property that is a portion of the Miossi Brothers La Cuesta Ranch, located in unincorporated San Luis Obispo County, for open space conservation and passive recreation purposes; 6. Authorizes the expenditure of $1,000,000, plus ancillary closing costs, from the City of San Luis Obispo’s Open Space Acquisition Funds towards the purchase of the property; 7. Authorizes the use of $200,000 from the City of San Luis Obispo’s Open Space Acquisition Funds, if needed, that will be reimbursed by the State of California’s Habitat Conservation Fund pursuant to the terms of that Grant Agreement; 8. Authorizes the acceptance of a donation of $100,000 from the Forbes Family via the San Luis Obispo County Community Foundation in accordance with the City’s Donation Acceptance Policy; 9. Authorizes the Mayor to execute a Certificate of Acceptance for the real property interest concurrent with the close of escrow for said transaction, and the City Manager to execute any and all documents necessary to consummate the transaction. 10. Authorizes the Mayor to execute a Deed Restriction, Access Easement Agreement, Telecommunications Easement Agreement and a Grazing Lease for the subject property consistent with the terms of the Purchase and Sale Agreement and in forms subject to the approval of the City Attorney. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 18th day of September 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk Packet Pg. 470 Item 15 Resolution No. _____ (2018 Series) Page 3 R ______ APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg. 471 Item 15 Subject – 266 ac. Packet Pg. 472 Item 15 Packet Pg. 473 Item 15