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Home My WebLink About03-17-2020 Agenda Packet - Revision #1 San Luis Obispo Page 1 Tuesday, March 17, 2020 4:30 PM REVISED REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon This portion of the meeting has been Cancelled due to escalating concerns with the COVID-19 Coronavirus outbreak. PRESENTATION ADVISORY BODY RECOGNITION EVENT (MAYOR / COUNCIL - 60 MINUTES) The Mayor and City Council will recognize Advisory Body members for their service, followed by a short reception in the Council Hearing Room. ADJOURNMENT Tuesday, March 17, 2020 5:30 5:00 PM REVISED* REGULAR MEETING Administration Collaboration Space Council Hearing Room 990 Palm Street * Revised for Time and Location San Luis Obispo Page 2 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PUBLIC COMMENT ON CLOSED SESSION ITEM CLOSED SESSION A. 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: Two. 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: On September 3, 2019, the City Council adopted the Clean Energy Choice Program with the second reading of the related ordinances planned for the September 17, 2019, Council meeting. On September 13, 2019, the City received correspondence from legal counsel representing the Utility Workers Union of America Local 132 alleging violations of conflict- of-interest rules related to the ordinances, which was followed by notification of a formal complaint being filed with the California Fair Political Practices Commission (“FPPC”) against Councilmember Pease. The September 13, 2019, letter is on file with the City Clerk. On September 20, 2019, the City requested formal advice from the FPPC on behalf of Councilmember Pease and a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On October 12, 2019, the City was notified that the FPPC would not be providing advice as requested. San Luis Obispo City Council Agenda March 17, 2020 Page 3 On October 28, 2019, the City requested formal advice from the FPPC on behalf of just a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On November 14, 2019, the FPPC issued a formal letter declining to provide advice as requested. That November 14, 2019, letter is on file with the City Clerk. Additionally, the City has received correspondence dated October 1, 2019, from Saro G. Rizzo, Attorney at Law, expressing concerns with the City’s Clean Energy Choice Program ordinances. The October 1, 2019 letter is on file with the City Clerk. All letters on file are available for review in the City Clerk’s Office located at 990 Palm Street. B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: Bonnie Kessner et al v. City of Santa Clara et al; Santa Clara Superior Court Case No. 20CV364054 ADJOURNMENT Adjourn to the next Regular City Council Meeting scheduled for Tuesday, March 17, 2020 at 6:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo, California. Tuesday, March 17, 2020 6:00 PM REVISED* REGULAR MEETING Council Chamber 990 Palm Street * Revised to Add Business Item B1(following Agenda Item 12) San Luis Obispo Page 4 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Vice Chair Gomez CITY ATTORNEY REPORT ON CLOSED SESSION APPOINTMENTS 1. 2020 APPOINTMENTS TO CITY ADVISORY BODIES (HERMANN / PURRINGTON / CHRISTIAN – 5 MINUTES) Recommendation: As recommended by the Council Liaison Subcommittees, make appointments to the City of San Luis Obispo's Advisory Bodies as set forth in the staff report and direct the City Clerk to continue to recruit for any unfilled vacant positions. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. San Luis Obispo City Council Agenda March 17, 2020 Page 5 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. 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 3. MINUTES REVIEW - MARCH 3, 2020 CITY COUNCIL MEETING (PURRINGTON) Recommendation: Approve the minutes of the City Council meeting held on March 3, 2020. 4. ADDITION OF THE PROPERTY AT 858 TORO STREET TO THE MASTER LIST OF HISTORIC RESOURCES AS “THE VIRGINIA LEVERING LATIMER HOUSE” (CODRON / OETZELL) Recommendation: As recommended by the Cultural Heritage Committee, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 858 Toro Street to the Master List of Historic Resources as “The Virginia Levering Latimer House” (Hist-0701-2019).” 5. AUTHORIZATION TO ADVERTISE ROADWAY SEALING PROJECT 2020, SPECIFICATION NO. 1000114 (STANWYCK / BANKER-HIX) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the Bicycle Transportation Plan (Amended 2019) to update the alignment of the Beach/King Neighborhood Bicycle Boulevard;” and 2. Approve the project plans and specifications for the Annual Slurry Sealing Project 2020, Specification No. 1000114; and 3. Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $1,822,000. San Luis Obispo City Council Agenda March 17, 2020 Page 6 6. REQUEST TO ADVERTISE FOR BROAD STREET/WOODBRIDGE PEDESTRIAN HYBRID BEACON, SPECIFICATION NUMBER 91609 (STANWYCK / RICE) Recommendation: 1. Approve plans and specifications for the Broad Street/Woodbridge Pedestrian Hybrid Beacon (PHB), Specification No. 91609; and 2. Authorize staff to formally advertise for bids; and 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount of $406,436. 7. AUTHORIZATION TO ADVERTISE AND AWARD RAILROAD SAFETY TRAIL TAFT TO PEPPER PROJECT, SPECIFICATION NO. 91375 (STANWYCK / WHEELER) Recommendation: 1. Approve plans and specifications for the Railroad Safety Trail Taft to Pepper Project (Project), Specification No. 91375, and authorize staff to formally advertise for bids; and 2. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount of $5,070,600; and 3. Authorize the City Manager to award the construction management contract if the lowest responsible bid is within the publicly disclosed funding amount of $603,750; and 4. Authorize the City Manager to award the railroad services contracts for flagging and permitting, not to exceed the publicly disclosed funding amount of $110,000. 8. AWARD OF ISLAY HILL PARK PLAYGROUND RENOVATION, SPECIFICATION NO. 91654 (STANWYCK / KLOEPPER) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California, approving an Amendment to the Islay Hill Park Playground Renovation Project and related budgetary appropriations;” and 2. Award a construction contract to R.E. Schultz Construction, Inc. in the amount of $334,705 for the Islay Hill Park Playground Renovation Project; and 3. Appropriate $38,521 from the Local Revenue Measure Fund balance to the project account and approve a budget transfer of $500,000 from the Playground Equipment Annual Asset Maintenance account to the project account. San Luis Obispo City Council Agenda March 17, 2020 Page 7 9. AWARD CONTRACT FOR THE MARSH STREET BRIDGE REPLACEMENT, SPECIFICATION NO. 90480 (STANWYCK / McGUIRE) Recommendation: 1. Award a contract to Souza Construction Inc. in the amount of $4,335,572 for the “Marsh Street Bridge Replacement, Specification No. 90480;” and 2. Authorize the City Manager to issue construction contract change orders in excess of $100,000 if within available budget; and 3. Authorize the City Manager to amend the Construction Management Services Agreement in excess of $50,000 if within available budget. 10. DISINFECTION BYPRODUCT REDUCTION AND PIPE GALLERY IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000044, CONSTRUCTION CONTINGENCY (FLOYD / MEEKS / METZ) Recommendation: Approve a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Water Fund Unreserved Working Capital to increase Construction Contingencies for the Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project, Specification No. 1000044.” 11. DEPARTMENT OF JUSTICE LIVESCAN ACCESS FOR EMPLOYMENT PURPOSES (IRONS / ROLTGEN) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Human Resource’s staff to access State and Federal level summary Criminal History for Employee Background Information through the Department of Justice.” 12. AUTHORIZE A PROPOSITION 64 PUBLIC HEALTH & SAFETY GRANT APPLICATION FOR NON-COMPLIANT CANNABIS DELIVERY ENFORCEMENT (HERMANN / BAILEY) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing submittal of the City’s Cannabis Mobile Delivery Enforcement Proposal for the Proposition 64 Public Health & Safety Grant administered by the Board of State and Community Corrections;” and authorize the City Manager, or their designee, to execute any required grant administration related documentation. San Luis Obispo City Council Agenda March 17, 2020 Page 8 PUBLIC HEARING AND BUSINESS ITEMS B1. CONSIDERATION OF DECLARING A LOCAL EMERGENCY WITHIN THE CITY OF SAN LUIS OBISPO (JOHNSON/DIETRICK - 10 MINUTES) Recommendation: Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, proclaiming a Local Emergency within the City of San Luis Obispo related to the Pandemic of Virus Known as COVID-19. 13. REGIONAL INFRASTRUCTURE AND AFFORDABLE HOUSING STRATEGIC ACTION PLAN COUNTYWIDE COMPACT (JOHNSON – 20 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, endorsing and authorizing the mayor or designee to sign the San Luis Obispo Countywide Regional Compact.” 14. ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT, SINGLE AUDIT REPORT, AND ANNUAL AUDIT OF TRANSPORTATION DEVELOPMENT ACT FUNDS FOR 2018-19 (ELKE – 20 MINUTES) Recommendation: Review and accept the Comprehensive Annual Financial Report for Fiscal Year 2018-19. 15. AUTHORIZE THE USE OF FY2018-19 UNDESIGNATED FUND BALANCE FOR ONE-TIME BUDGET ALLOCATIONS AND FORMALLY ADOPT THE FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT PROCEDURES (JOHNSON / ELKE – 30 MINUTES) Recommendation: 1. Adopt a Resolution entitled, “Resolution of the City Council of the City of San Luis Obispo, California, approving amendments to the 2019-20 budget allocation for the General, Water, Sewer, Parking, Transit and Public Art Funds;” and 2. Approve one full-time equivalent position in support of the reorganization of Community Service departments; and 3. Review recommended changes to the Capital Improvement Plan; and 4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Federal Emergency and Federal Grant Procurement Procedures.” San Luis Obispo City Council Agenda March 17, 2020 Page 9 16. REVIEW OF THE PROPOSED “EAST AIRPORT” ANNEXATION OF APPROXIMATELY 58 ACRES OF PROPERTY (33 PARCELS) ALONG BROAD STREET AT FARM HOUSE LANE, KENDALL ROAD, PROSPECT STREET AND ASSOCIATED INFRASTRUCTURE IMPROVEMENTS, INCLUDING APPROVAL OF A PLAN FOR SERVICES, PRE-ANNEXATION AGREEMENT, AND APPLICATION TO THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) REGARDING THE PROPOSED ANNEXATION, AND ADOPTION OF AN INITIAL STUDY/MITIGATED NEGATIVE DECLARATION (SCH#2000051062) (PL-ANNX-2030-2018; EID-0006-2020) (CODRON / McCLISH – 60 MINUTES) Recommendation: 1. As recommended by the Planning Commission, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the annexation of the East Airport Annexation Area properties (East Airport Commerce Park Association, Senn-Glick) to the City of San Luis Obispo (PL-ANNX-2030-2018, EID- 0006-2020).” 2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, adopting amendments to Chapter 17.94 of Title 17 (Zoning Ordinance) establishing provisions for the continuance of Non-Conforming Uses existing at the time of annexation within the East Airport Area (PL-ANNX-2030-2018, EID-0006-2020).” 17. MEMORANDUM OF UNDERSTANDING WITH CAL POLY REGARDING IMPLEMENTATION OF MITIGATION MEASURES IDENTIFIED IN THE CAL POLY MASTER PLAN ENVIRONMENTAL IMPACT REPORT (CODRON / 90 MINUTES) Recommendation: Authorize the City Manager to execute the proposed memorandum of understanding with Cal Poly to ensure that impacts on City services and infrastructure associated with build-out of the Master Plan are properly identified and mitigated. 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) San Luis Obispo City Council Agenda March 17, 2020 Page 10 ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, April 7, 2020, Closed Session at 5:30 p.m. in the Council Hearing Room, Regular Session at 6:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo, California. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100. Department Name: Administration Cost Center:1021 For Agenda of:March 17, 2020 Placement:Appointment Estimated Time:10 Minutes FROM: Greg Hermann, Deputy City Manager Prepared By:Teresa Purrington, City Clerk Kevin Christian, Deputy City Clerk SUBJECT:2020 APPOINTMENTS TO CITY ADVISORY BODIES RECOMMENDATION As recommended by the Council Liaison Subcommittees, make appointments to the City of San Luis Obispo's (City) Advisory Bodies as set forth below and direct the City Clerk to continue to recruit for any unfilled vacant positions. DISCUSSION The City has a long history of involving its residents in the business of City government. Holding a position on an advisory committee or commission provides an opportunity for interested residents to participate in the governing of their community under guidelines and procedures established by Council. The City recruits annually to fill scheduled vacancies, making new appointments each March to fill terms that typically commence on April 1st of each year (exceptions noted in recommendations). Recruitment for unscheduled vacancies is done as needed but is consolidated with the annual recruitment when possible. This year the City recruited to fill 30 scheduled and unscheduled Advisory Body positions. The recruitment was conducted between mid-November 2019 and January 17, 2020. A total of 54 qualified applications were received. Council Liaison Subcommittees conducted interviews during the months of February and March 2020. The following recommendations will fill 23 of these vacancies. Recruitment for the remaining vacancies continues. No vacancies currently exist on the Investment Oversight Committee, the Jack House Committee, the Tree Committee, and the Zone 9 Advisory Committee.Therefore, no recruitment was held for these Advisory Bodies. Council Liaison Subcommittee Recommendations Area Agency on Aging Robert Spector to a two-year term commencing July 1, 2020 and expiring June 30, 2022 Packet Page 13 Item 1 Active Transportation Committee Jonathan Roberts to a four-year term commencing April 1, 2020, and expiring March 31, 2024. Russell Mills to immediately fill an unscheduled vacancy with a term expiring March 31, 2021. Administrative Review Board Earl Conaway to a two-year term commencing April 1, 2020, and expiring March 31, 2022. Alex Karlin to a two-year term commencing April 1, 2020, and expiring March 31, 2022. Continue to recruit for one unfilled vacancy with a term expiration of March 31, 2021. Architectural Review Commission Continue to recruit for one unfilled vacancy with a term expiration of March 31, 2024. Citizens Transportation Advisory Committee John Osumi to a four-year term commencing April 1, 2020, expiring March 31, 2024. Construction Board of Appeals Continue to recruit for one unfilled vacancy with a term expiration of March 31, 2022, and one unfilled vacancy with a term expiration of March 31, 2024. Cultural Heritage Committee Continue to recruit for one unfilled vacancy with a term expiration of March 31, 2023, and one unfilled vacancy with a term expiring March 31, 2024. Housing Authority Ashlea Boyer to a four-year term commencing April 1, 2020, expiring March 31, 2024. Human Relations Commission Nancy Welts to a four-year term commencing April 1, 2020, expiring March 31, 2024. Drew Littlejohns to a two-year term commencing April 1, 2020, expiring March 31, 2022.(This appointment is to fill an un-scheduled vacancy that will occur if Michael Hopkins is appointed to the Planning Commission as recommended. The Advisory Body Bylaws don’t allow an individual to hold two positions at the same time.) Mass Transportation Committee John Osumi to a four-year term commencing April 1, 2020, expiring March 31, 2024. Trevor Freeman, to a two-year term as an Alternate Representative commencing April 1, 2020, expiring March 31, 2022. Parks and Recreation Commission Rick Blair to a four-year term expiring March 31, 2024. Sommer Sheffield to a four-year term expiring March 31, 2024. Personnel Board Interviews to be conducted in April for a current vacancy with a term expiring March 31, 2021. Packet Page 14 Item 1 Planning Commission Michael Hopkins to a four-year term commencing April 1, 2020, expiring March 31, 2024. Michelle Shoresman to a four-year term commencing April 1, 2020, expiring March 31, 2024. Promotional Coordinating Committee Samantha Welch to a four-year term commencing April 1, 2020, expiring March 31, 2024. Stephanie Stackhouse to a one-year term commencing April 1, 2020, expiring March 31, 2021. Revenue Enhancement Oversight Commission Jeannette McClure to a three-year term commencing July 1, 2020, expiring June 30, 2023. Steven Skapinsky to a three-year term commencing July 1, 2020, expiring June 30, 2023. Christopher Ellwood to a three-year term commencing July 1, 2020, expiring June 30, 2023. Jim Hamari to a two-year term commencing July 1, 2020, expiring June 30, 2022. Tourism Business Improvement District Board John Conner to a four-year term commencing April 1, 2020, expiring March 31, 2024. Clint Pearce to a one-year term commencing April 1, 2020, expiring March 31, 2021. Continue to recruit for one unfilled vacancy to a term expiring March 31, 2024. Applications of those who were unsuccessful in this process will be kept on file for the next year and will be notified of any subsequent vacancies. However, advertisement of any unscheduled vacancy will be made in accordance with statutory requirements and all applicants will be considered for the vacancy. Policy Context The Advisory Body Handbook, last adopted by City Council in February 2018, outlines the recruitment procedures, membership requirements, and term limits. Also contained in the Advisory Body Handbook are the bylaws for all advisory bodies, some of which include additional membership requirements. Additionally, the City Council Policies and Procedures Manual, last adopted in August 2019, describes the “Appointment Procedure” and “Process” for Advisory Body appointments. Recruitment and appointment recommendations were performed in conformance with all recruitment procedures, processes, and bylaws found in these resources. Public Engagement Notices that the City was accepting applications for the above listed Advisory Bodies were placed in The New Times, on the City’s website and “e-notification” service,City social media outlets, and City utility bill inserts. Packet Page 15 Item 1 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: FY 2019-20 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total There is no additional impact for the appointment of the above Advisory Body members. Compensation for Architectural Review Commission (ARC) and Planning Commission (PC) is included in the adopted budget for the Community Development Department. ALTERNATIVES Council could recommend changes to the recommended appointments. AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE All applications are available in the City Council reading file and for public review in the Office of the City Clerk. Packet Page 16 Item 1 Tuesday, March 3, 2020 Regular Meeting of the City Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, March 3, 2020 at time 6:02 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 Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, 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 Pease led the Pledge of Allegiance. PROCLAMATIONS 1. PROCLAMATION CONDEMNING ALL FORMS OF HATRED AND BIGOTRY Mayor Harmon presented a Proclamation to Bend the Arc, People of Faith For Justice, R.A.C.E MATTERS, GALA, JCC Federation, Diversity Coalition-San Luis Obispo County declaring that the City Council of the City of San Luis Obispo condemns all forms of hatred and bigotry. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Dr. Joe Morris Allen Root Jeffery Specht ---End of Public Comment--- Packet Page 17 Item 3 San Luis Obispo City Council Minutes of March 3, 2020 Page 2 CONSENT AGENDA ACTION:MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 3 thru 10. 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 3. MINUTES REVIEW - FEBRUARY 18, 2020 CITY COUNCIL MEETING CARRIED 5-0, to approve the minutes of the City Council meeting held on February 18, 2020. 4. FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 1 –A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA (TOSCANO) CARRIED 5-0, to adopt Resolution No. 11089 (2020 Series)entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the Public Improvements, certifying completion of the Private Improvements, and authorizing release of the Securities for Tract 2428 – Phase 1 (3000 Calle Malva).” 5. EXERCISE THE FIRST EXTENSION OF THE 2015 TRANSIT OPERATIONS & MAINTENANCE AGREEMENT WITH FIRST TRANSIT INC. CARRIED 5-0, to authorize the City Manager to exercise the first of three possible extensions of the 2016 Transit Operations & Maintenance Agreement with First Transit Inc. 6. CALLE JOAQUIN LIFT STATION REPLACEMENT PROJECT, SPEC. NO. 91118 - EASEMENT PURCHASE CARRIED 5-0, to: 1. Approve an Easement Deed for the purchase of real property from G6 Hospitality Property, LLC for construction of the Calle Joaquin Lift Station Replacement Project and authorize the Mayor to execute the Deed; and 2. Approve a Right of Way Agreement with G6 Hospitality Property, LLC in the amount of $95,000 and authorize the Mayor to execute the Agreement; and 3. Authorize the City Manager to execute any necessary supplemental escrow paperwork to complete the transaction. 7. AUTHORIZE APPLICATION FOR THE CALIFORNIA RESILIENCY CHALLENGE GRANT CARRIED 5-0, to: 1. Approve of Utility Staff’s preparation and submission of a grant application for the California Resiliency Challenge Grant Project; and 2. Authorize the City Manager, or their designee, to execute the required grant application documentation and, should grant funds be awarded, make the necessary budget adjustments. Packet Page 18 Item 3 San Luis Obispo City Council Minutes of March 3, 2020 Page 3 8. AWARD CONTRACT TO ALEXANDER'S CONTRACT SERVICES FOR METER READING SERVICES CARRIED 5-0, to award a three-year contract to Alexander’s Contract Services for contract utilities meter reading in an amount not to exceed $195,000 per year. 9. SECOND READING OF ORDINANCE NO. 1679 (2020 SERIES) TO AMEND TITLE 17 OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS CARRIED 5-0, to adopt Ordinance No. 1679 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code associated with Accessory Dwelling Units and Introducing Junior Accessory Dwelling Units.” 10. SANTA ROSA AT MONTEREY REIMBURSEMENT AGREEMENT WITH 1144 HIGUERA STREET, LLC CARRIED 5-0, to: 1. Adopt Resolution No. 11090 (2020 Series) entitled, “A Resolution of The City Council of the City of San Luis Obispo, California, approving a Reimbursement Agreement with 1144 Higuera Street, LLC for Oversized Public Improvements and Related Budgetary Appropriations”for the construction of specific public improvements by 1144 Higuera Street, LLC that both maintain and improve the downtown, and authorize the City Manager to execute this Agreement; and 2. Advance Infrastructure Investment Funds in the amount of $500,000 from Fiscal Year 2020-21 to 2019-20; and 3. Defer Fiscal Year 2020-21 Downtown Renewal Project to support the cost associated with the Reimbursement Agreement. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 11. POLICE DEPARTMENT 2019 CRIME REPORT COMPARISON AND UPDATE Chief of Police Deanna Cantrell and Operations Captain Brian Amoroso provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION:By consensus the Council moved receive and file the 2019 Police Department Crime Report. Packet Page 19 Item 3 San Luis Obispo City Council Minutes of March 3, 2020 Page 4 12. CONSIDERATION OF THE 2020 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING RECOMMENDATIONS Community Development Director Michael Codron and Housing Coordinator Cara Vereschagin provided an in-depth staff report and responded to Council questions. Public Comments: Morgen Benevedo Grace McIntosh ---End of Public Comment--- ACTION:MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR GOMEZ, CARRIED 5-0 to adopt Resolution No. 11091 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2020 Community Development Block Grant (CDBG) Program,”to approve funding allocations for an estimated $496,355 of CDBG funds for the 2020 Program Year: 13. INTRODUCE AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Human Resources Director Monica Irons and Human Resources Analyst Brittani Roltgen provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION:MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to: 1. Introduce Ordinance No. 1680 (2020 Series)entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, authorizing an amendment to the Contract between the City Council of the City of San Luis Obispo and the Board of Administration of the California Public Employees’ Retirement System;” and 2. Adopt Resolution No. 11092 (2020 Series)entitled, “A Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of San Luis Obispo.” COUNCIL COMMUNICATIONS AND LIAISON REPORTS Council Member Pease updated the Council on the Nacimiento Commission meeting. Vice Mayor Gomez updated the Council on the Global Waste Management Symposium he attended in Indian Wells, CA. Council Member Stewart updated the Council on the CAPSLO meeting. Packet Page 20 Item 3 San Luis Obispo City Council Minutes of March 3, 2020 Page 5 ADJOURNMENT The meeting was adjourned at 8:09 P.m. The next Regular City Council Meeting is scheduled for Tuesday, March 17, 2020 at 4:30 p.m. and 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2020 Packet Page 21 Item 3 Page intentionally left blank. Packet Page 22 Item 3 Department Name: Community Development Cost Center:4003 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Michael Codron, Community Development Director Prepared By:Walter Oetzell, Assistant Planner SUBJECT:ADDITION OF THE PROPERTY AT 858 TORO STREET TO THE MASTER LIST OF HISTORIC RESOURCES AS “THE VIRGINIA LEVERING LATIMER HOUSE” RECOMMENDATION As recommended by the Cultural Heritage Committee, adopt a Resolution (Attachment A) adding the property at 858 Toro Street to the Master List of Historic Resources as “The Virginia Levering Latimer House.” DISCUSSION Background Eric and Jaqueline Blair (Applicants) have requested that the property at 858 Toro Street be designated as a Master List Resource in the City of San Luis Obispo’s (City) Inventory of Historic Resources, as “The Virginia Levering Latimer House” (Property). The Property is currently designated as a Contributing List Resource and is located within the Mill Street Historic District. On January 27, 2019 the Cultural Heritage Committee considered this request and found that the property meets eligibility criteria for historical listing to a degree that qualifies it for designation as a Master List Resource, and recommended that the City Council designate the Property as a Master List Resource in the City’s Inventory of Historic resources. Site and Setting The Property is at the southeast corner of Toro and Mill Streets, within the Mill Street Historic District (Attachment B). The district was developed at the turn of the 20th Century and has a high concentration of historic structures. The majority of the historic resources date from the early 20th Century, the district’s primary period of historical and architectural significance, though several resources also date from the late 19 th Century (see Attachment C). Figure 1: 858 Toro Street Packet Page 23 Item 4 The site is developed with a single-family dwelling (see Figure 2 below). Though no construction date is noted in City records,1 the footprint of the dwelling first appears in a Sanborn Map of the area published in 1891. In 1983 the Property was designated as a Contributing List Resource. The Applicants have provided an evaluation of the Property and its eligibility for historic listing, prepared by James Papp of Historicities, LLC (Papp) (Attachment D). Building Architecture As described in the Papp evaluation, the dwelling embodies the Italianate style.2 The City’s Historic Context Statement describes the style as one that began in England as part of the Picturesque Movement, and in the United States followed the informal model of the simple Italian farmhouse, adapted into an indigenous style (see Attachment E). The architect and builder of the dwelling are unknown.3 The architectural characteristics of the building are more fully discussed in the Papp evaluation submitted with this application, and summarized in the Evaluation section of this report, below. The Latimer Family4 The Papp report outlines the history of the Latimer Family who, by 1860, relocated to California from Maryland and Virginia. In 1878 Benjamin Griffith (“B.G.”) Latimer, Jr. moved from Santa Clara County to San Luis Obispo, and by the 1900 census Virginia Levering Latimer, his mother, resided at 858 Toro Street (her husband having died in Santa Clara County in 1886), and lived there until her death in 1907. The dwelling is most closely associated with Virginia Latimer during the building’s period of significance. 1 Historical Information File (“Yellow File”); see Attachment F. 2 James Papp, “Master List Application – Virginia Levering Latimer House” (November 2019), pg. 6 3 Papp, pg. 4 4 Summarized from Papp, pp. 4-5 Figure 1: Virginia Levering Latimer House; 1904 (left) and 2019 (right) Packet Page 24 Item 4 Evaluation of Eligibility for Listing 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 Historic Preservation Ordinance § 14.01.070 (see Attachment G). As provided in § 14.01.050 of the Ordinance, 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 Character-defining features of the Italianate Style are described in the City’s Historic Context Statement to include: Symmetrical façade Low pitched hipped or flat roof Widely overhanging eaves with large decorative brackets Tall narrow windows, commonly arched or curved above Elaborated window crowns One-story entry porch, often supported by square posts with beveled corners Centrally placed square tower or cupola As described and depicted in pages 8-11 of the Papp evaluation, the Latimer House exhibits all of these features, albeit with a “more economical or streamlined feeling” common to later Italianate examples. A hipped roof, overhanging bracketed eaves, tall narrow windows, and a symmetrical façade at the main entry set the primary form of the building. A one-story porch frames the entry, and a parapet recalls the original balustrade on the roof. Historic Criteria The property is, during its period of significance, most closely associated with the Latimer family, as described in pages 4-5 of the Papp evaluation.Though the family’s background and history provide an important glimpse into early California and local history, the evaluation provided does not indicate a relevant association with singular and important historical events and patterns or significance to the community rising to a level that qualifies the property as a “Master List Resource” under Historic Criteria in the Historic Preservation Ordinance § 14.01.070 (B).. Integrity Apart from a 1905 “lean-to” addition at the rear of the house, replacement of the roof balustrade with a parapet, loss of porch column capitals and bases, new sash windows (within the original surrounds), and a limited number of new window openings (on secondary elevations), the building retains a high degree of integrity of its external features.5 Some original features are evident in the building interior, but the interior has been renovated to accommodate continued residential use. The building occupies its original site, in the same location on the property, and has changed very little from its original appearance, and thus to a large degree was found to satisfy the criteria for Integrity set out in the Historic Preservation Ordinance § 14.01.070 (C). 5 Papp, pp. 11-12 Packet Page 25 Item 4 Conclusion The information in the Papp evaluation prepared for this application, documenting the architectural character and integrity of the house, provides a basis for finding that the dwelling satisfies Evaluation Criteria for Architectural Style and Design and for Integrity described in the City’s Historic Preservation Ordinance §§ 14.01.070 (A) & (C) , to a degree that qualifies it for designation of the Property as a Master List Historic Resource. Policy Context The recommended action on this item is supported by historical preservation policies set out in section 3.0 of the Conservation and Open Space Element of the City’s General Plan, and with procedures and standards for listing of historic resources set out in the City’ s Historic Preservation Ordinance §§ 14.01.060 & 14.01.070. Public Engagement Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Public notice was also previously provided for the Cultural Heritage Committee meeting of January 27, 2020. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020 Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $N/A State Federal Fees Other: Total N/A $0 $0 Adding the Property to the Master List of Historic Resources will have no fiscal impacts. Historic designation of the Property itself has no bearing on City fiscal resources. As a Master List Resource, however, the Property would be eligible for historic preservation incentives under the “Mills Act,”which is under consideration by subsequent application (HIST-0048-2020). A separate fiscal analysis would be reviewed by the City Council should the property proposed to be added to the Mills Act list of properties. Packet Page 26 Item 4 ALTERNATIVES 1. Decline to designate the property as a Master List Resource in the Inventory of Historic Resources based on finding that the Property is not considered to be sufficiently unique or important, or found to satisfy Evaluation Criteria for listing to a degree warranting such designation. The Property would remain in the Inventory as a Contributing List Resources. 2. Continue consideration of the request for additional information or discussion. Attachments: a - Draft Resolution b - Vicinity Map c - Mill Street Historic District (Historic Preservation Program Guidelines) d - COUNCIL READING FILE - Latimer House Master List Application e - Italianate Style (Historic Context Statement) f - Historic Property File g - Evaluation Criteria Packet Page 27 Item 4 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADDING THE PROPERTY LOCATED AT 858 TORO STREET TO THE MASTER LIST OF HISTORIC RESOURCES AS “THE VIRGINIA LEVERING LATIMER HOUSE” (HIST-0701-2019) WHEREAS,the applicants, Eric and Jaqueline Blair, filed an application on October 17, 2019, for review of the inclusion of the property at 858 Toro Street on the City of San Luis Obispo’s (City) Master List of Historic Resources; and WHEREAS,the City’s Cultural Heritage Committee conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on January 27, 2020 and recommended that the City Council add the property at 858 Toro Street to the City’s Master List of Historic Resources; and WHEREAS,the City Council conducted a public hearing on March 17, 2020 for the purpose of considering the request to add the 858 Toro Street property to the City’s Master List 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 property is eligible for inclusion in the City’s Inventory of Historic Resources as a Master List Resource because the dwelling on the property satisfies 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), exhibitsa high degree of historic integrity, and is more than 50 years old. b) The dwelling on the subject property satisfies evaluation criteria related to architectural style (HPO §14.01.070 (A)). It conveys a purity of style, exhibits attractiveness through detailing and craftsmanship, and is a rare example within the City of the Italianate Style. The building occupies its original site, with its exterior largely unaltered, and retains its characteristic design and materials, satisfying criteria for Integrity (HPO § 14.01.070 (C)). Packet Page 28 Item 4 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2.Environmental Determination. The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. SECTION 3.Action. The City Council of the City of San Luis Obispo does hereby include the property located at 858 Toro Street to the Master List of Historic Resources as “The Virginia Levering Latimer House.” Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______ day of __________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 29 Item 4 R-2-H O R-2-H R-3-HR-2-H PF R-2 R-2-H MILL TORO VICINITY MAP HIST-0701-2019 858 Toro Street ¯ Packet Page 30 Item 4 47 5.2.4 Mill Street Historic District Setting Established in 1987, the Mill Street Historic District is a residential neighborhood bounded by Pepper and Toro Streets on the east and west, and Peach and Palm Streets on the north and south. The Mill Street District is part of one subdivision, The Town of San Luis Obispo, recorded in 1878, although the area informally has been referred to as Fremont Heights. For its land area, Mill Street Historic District has the highest concentration of historic structures of the City’s five Historic districts. It is a relatively small district, with an area of 20 acres or 0.03125 square miles, and as of January of 2010 had 84 listed historic properties. The Mill Street district was developed at the turn of the 20th century, with the majority of the existing buildings dating from the 1900s to 1920s, the district’s primary period of historical and architectural significance. The district was developed on high ground with originally very wide (100 ft) lots in response to both the seasonal flooding and fires that plagued early development in San Luis Obispo. A few of these wide lots remain in the 1300 block of both Mill Street and Palm Street, but the majority of them were later re-subdivided into 50-60 foot wide lots. Site Features and Characteristics Common site features and characteristics include: A. Trees spaced at regular intervals along the street (especially on Mill Street) B. Distinctive Camphor Trees lining both sides of Mill Street between Johnson and Pepper, a key entry corridor for the district C. Consistent street yard setbacks of 20 feet or more D. Coach barns (garages) recessed into rear yard E. Finish floors raised 2-3 above finish grade F. Front entries oriented toward street, with prominent walk, stairs and entry porches. G. Front building facades oriented parallel to street Architectural Character Developed during a population boom in San Luis Obispo circa 1900s-1920s, the district’s residential architectural styles reflect the prosperity of its residents. While older and more elaborate residences are located on the 1300 block of both Palm and Mill Streets, the majority of 1344 Mill Street, South Elevation Packet Page 31 Item 4 48 historic homes were more modest residences. The close proximity to the court house meant that Mill Street was home to many county employees, including county assessors, attorneys, and county clerks. The Mill Street District encompasses many different architectural styles, including revival styles popular at the turn of the twentieth century. These styles include Neo-classic Row House, Victorian (with elements of Gothic Revival, Queen Anne, Stick and Eastern Shingle), Tudor Revival, Mission Revival, and Craftsman Bungalow, with many homes borrowing architectural details from more than one style. Most buildings in this district were built by local builders, including E.D. Bray and James Maino and were influenced by architectural pattern books of the time period. Predominant architectural features include: A. One- and occasionally two-story houses B. Mostly gable and hip roof types C. Traditional fenestration, such as double-hung, wood sash windows, ornamental front doors, wood screen doors D. Ornamental roof features, including prominent fascias, bargeboards, prominent pediments or cornices E. Painted wood or stucco surface material, including siding and molding Individually Contributing Elements in the Mill Street District Not all historic resources in the Mill Street Historic District were built during the district’s period of significance. Those buildings date from the late 1800s, generally do not exhibit the signature architectural elements described above, but do contribute to the historic character of San Luis Obispo in their own right based on age, architectural style or historical association. By virtue of their significance, these resources also merit preservation. For example, the Buckley House at 777 Johnson Avenue is a converted carriage house built in the 1880s and is significant for its design, specifically the board and batten siding, of which there very few examples are left in the City. The Shipsey House at 1266 Mill Street, a National Register property, is an example of Eastern Stick and significant for both its architectural style and its association with William 1264 and 1270 Palm Street, South Elevation 777 Johnson Avenue, East Elevation Packet Page 32 Item 4 49 Shipsey, attorney and mayor of San Luis Obispo from 1898 to1901. Non-Contributing Elements in the Mill Street District Non -contributing buildings are those that both do not meet the criteria outlined above and have not achieved historical significance. Most of the post—1950 contemporary buildings in the district fall into this latter category. Non-contributing architectural styles, materials or site features include: A. Aluminum sliding windows B. Rectilinear, “boxy” shape C. Metal or other contemporary material siding, or “faux” architectural materials or features. D. Unarticulated wall surfaces E. Non-recessed or offset street entries to buildings 1243 Mill Street, North Elevation Packet Page 33 Item 4 50 *** 1262 Mill Street; 1261 Mill Street; 1143, 1137 and 1127 Peach Street; Righetti House, 1314 Palm Street Packet Page 34 Item 4 City of San Luis Obispo Architectural Character Citywide Historic Context Statement HISTORIC RESOURCES GROUP 145 ITALIANATE The Italianate style began in England as part of the Picturesque Movement. As used in the United States, this style generally followed the informal model of the simple Italian farmhouse, but was adapted into an indigenous style. This style did not enjoy the widespread popularity of other Victorian-era styles, and relatively few Italianate buildings were built. Character-defining features include: x Symmetrical façade x Low pitched hipped or flat roof x Widely overhanging eaves with large decorative brackets x Tall narrow windows, commonly arched or curved above x Elaborated window crowns x One-story entry porch, often supported by square posts with beveled corners x Centrally-placed square tower or cupola Jack House, 536 Marsh Street, 1880. Source: Historic Resources Group. Fitzgerald House, 794 Buchon Street, 1902. Source: Historic Resources Group. 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Packet Page 42 Item 4 Department Name: Public Works Cost Center:5006 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Shelly Stanwyck, Assistant City Manager/Interim Public Works Director Prepared By:Wyatt Banker-Hix, Engineer II SUBJECT:AUTHORIZATION TO ADVERTISE ROADWAY SEALING PROJECT 2020, SPECIFICATION NO. 1000114 RECOMMENDATION 1. As recommended by the Active Transportation Committee, adopt a Resolution (Attachment A) amending the Bicycle Transportation Plan (BTP) changing the alignment of the Beach/King Neighborhood Greenway to the Nipomo/King Neighborhood Greenway; and 2. Approve the project plans (Attachment B) and specifications (Attachment C) for the Annual Slurry Sealing Project 2020, Specification No. 1000114 (Project); and 3. Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $1,822,000. DISCUSSION Report in Brief Following the City of San Luis Obispo’s (City) Pavement Maintenance Plan (Pavement Plan), staff intends to advertise a slurry sealing project and provide maintenance and striping improvement to the streets listed in Attachment D. Also included in this bid package are maintenance and striping plans for Emerson Parking Lot and Bob Jones Bike Path (Additive Alternate A and B). See attachments B and C for Project Plans and Specifications, including additive alternates.Staff does not recommend the addition of “Cool Pavement” toppings to be used in this Project. In coordination with neighborhood and Active Transportation Committee input, designating two new Neighborhood Greenways and re-branding an existing bike boulevard into a Neighborhood Greenway are recommended. Portions of Pismo Street will undergo a “Complete Street” re- striping. This Project will be funded in Fiscal Year 2020-21. Allocated funds for this Project are estimated to be sufficient. Packet Page 43 Item 5 Background On April 14, 1998, the City Council adopted the City’s Pavement Plan. In 2009, the Pavement Plan was updated to provide additional emphasis on arterial streets. A key element of the Pavement Plan is a rotating and methodical approach to ensuring all areas of the City receive regular preventative and/or corrective paving maintenance. The City implements this rotation by performing maintenance in two neighborhood Pavement Areas in one year, and then focusing on arterial street work in the second year, thereby alternating between neighborhood areas and arterials bi-annually. Last summer, streets maintenance funding was used for the rehabilitation of the arterial, South Broad Street, which included asphalt replacement and striping enhancements. Improvements to both pedestrian and cyclist access in the form of curb ramps and buffered bike lanes were also completed. 2020 Roadway Sealing Project (Base Bid) This year, pavement management work is planned for local neighborhood streets in Areas 4 and 5 in the form of roadway sealing. Roads to be Sealed and Striping Area 4 surrounds the downtown core, bounded by Santa Rosa Street, Highway 101 and South street. Core downtown streets between Marsh Street and Pacific Street are generally excluded as these streets are included in Area 9. Area 5 consists of the City’s southern streets, bounded by Madonna Road and stretching east until the end of Prado Road. Packet Page 44 Item 5 In anticipation for this year’s roadway sealing project, the City’s Street Maintenance team has applied crack sealing treatment and spot repairs within Areas 4 and 5. This preparatory work increases the slurry seal’s long-term effectiveness and reduces overall construction costs.Slurry seal is a cost-effective treatment that extends pavement life up to 8 years and prevents more expensive maintenance work in the future. Applied as a thin pavement sealant, it shields the pavement beneath from ultraviolet damage, minimizes water intrusion, and provides a new wearing surface for vehicles. This preventative maintenance treatment is less costly and more environmentally beneficial than street re-paving. Street pavement condition is rated on a scale from 0 to 100, where 100 is the best possible condition of pavement. This rating scale is referred to Pavement Condition Index (PCI). Completion of the Project will allow the City to maintain its established goal of a PCI of at least 70. The current Citywide pavement condition is 74. In addition to roadway maintenance, this Project will also complete roadway striping and bicycle/pedestrian improvements. The striping improvements will make significant improvements to sustainable transportation, a Major City Goal. These “Quick Build”improvements are described in more detail in the below section on Complete Streets Design Elements. Parking Lot and Bicycle Pathway Maintenance (Project Additive Alternative A and B) In addition to the Area 4 and 5 slurry sealing, staff identified cost benefits to incorporating parking lot maintenance and bicycle pathway maintenance projects identified within the 2019-21 Financial Plan. The Emerson Park parking lot adjacent to both Emerson Park and the Parks and Recreation Administration Building were identified as ready for maintenance. Similarly, the Bob Jones Bike Path between Prado Road and Los Osos Valley Road was identified for maintenance in 2020. These maintenance projects would use the same slurry sealing treatment as the neighborhood streets, and economies of scale will be realized through overall lower unit costs for a larger scale maintenance treatment operation. These projects are incorporated as additive alternates and will be recommended for award if costs are within the available budget. Complete Street Design Elements This project includes several Complete Street enhancements as recommended in the City’s Bicycle Transportation Plan and Traffic Safety/Vision Zero program. The annual pavement management program provides excellent opportunities for rapid implementation of other “Quick Build”transportation improvements—smaller projects that can be installed more efficiently and at a lower cost when included as part of a larger paving contract.“Quick Build” projects allow the City to immediately improve safety and mobility for road users of all ages and abilities, often with lower-cost temporary materials, while awaiting funding for more substantial permanent improvements several years from now. Packet Page 45 Item 5 Neighborhood Greenways Neighborhood Greenways within Project Limits The BTP identifies two new Neighborhood Greenways — previously referred to as “Bicycle Boulevards”—within Pavement Area 4: Islay Street Neighborhood Greenway; and, Beach/King Neighborhood Greenway. The Islay Street Neighborhood Greenway is planned from Nipomo to Toro Street. This route provides east-west access to three intersecting neighborhood greenways (existing Morro Street, planned Nipomo Street and planned Toro Street). Existing volumes and speeds along this segment of Islay make it ideal for a neighborhood greenway. Packet Page 46 Item 5 The 2013 BTP identified the Beach/King Neighborhood Greenway in order to provide a low stress north/south through route for bicyclists connecting the downtown core with neighborhoods to the south and west of Broad Street.In 2019, the City’s Active Transportation Committee made a formal recommendation to modify the Beach/King route to an alignment that primarily follows King and Nipomo Streets. The purpose for the amended route is to provide an alignment that better connects to neighborhoods north of downtown (Beach Street does not go further north than Marsh Street). The proposed greenway route also provides improved connectivity to Hawthorne Elementary and crosses High Street at Hutton, an existing school crossing, which provides an opportunity to focus greenway crossing improvements on an existing route to school. Overall, the modified King/Nipomo greenway route will provide a continuous, efficient connection from Meadow Park to north of Downtown. Attachment A includes a resolution formally adopting this modified alignment for the King/Nipomo greenway. Existing traffic volumes along Nipomo/Hutton/King are within comfortable ranges for a neighborhood greenway; however, existing vehicle speeds along Nipomo were found to be slightly higher than the ideal range recommended for a low-stress bikeway where cyclists share travel lanes with vehicles. For this reason, speed humps will be installed as part of this project at various locations along Nipomo to bring motor vehicle speeds to a more appropriate level. Not included in this paving contract, are several unsignalized intersections throughout the City that are currently being designed for pedestrian and bicycle crossing improvements. Each intersection will include the addition of high-visibility crossing markings, signage, and installation of Rapid Rectangular Flashing Beacon (RRFB) systems—push button activated crossing beacons, similar to those already installed at Marsh/Garden and Morro/Hotel SLO. These improvements will be completed under a separate construction contract and will be scheduled in parallel with the summer paving program. These pedestrian and bicycle improvement crossings are planned for the King/Nipomo Greenway (South/King & High/Hutton), two locations along the Islay Greenway (Islay/Broad & Islay/Osos) and several other priority intersections (Tank Farm/Poinsettia, Johnson/Sydney, Monterey/Buena Vista). In addition to the new Islay and King/Nipomo neighborhood greenways, the existing Bill Roalman Bicycle Boulevard on Morro Street will be formally branded as a Neighborhood Greenway. Each of the greenways within 2020 sealing area will include custom signage and pavement markings to convey these as priority streets for cyclists and pedestrians. Stop signs will be reoriented at the Pismo/Morro and Pismo/Nipomo intersections to further prioritize efficient bicycle and pedestrian crossings along each greenway. In an additional effort to improve intersection safety and incorporate placemaking features into these projects, select intersections along each greenway will have painted bulbouts that will be filled in with murals and landscaped planters as part of a planned public art project to be implemented shortly after the summer paving program.In collaboration with the City’s Parks and Recreation Department, a public call to artists will be distributed in the coming months to invite proposals from local artists. The bulbout public art component meets criteria for the Minor Public Art Approval process and will follow the Public Art Program Guidelines for call for artists and jury process for final approvals. The painting of the bulbouts will not commence until completion of the sealing project. Packet Page 47 Item 5 See Attachment E for Examples of Neighborhood Greenway Branding Elements. Implementation of the two new neighborhood greenways will add 1.2 miles to the City’s low- stress bicycle network. Neighborhood Greenway Custom Sign Pismo Street Complete Street Reconfiguration Pismo Street from Johnson Avenue to Higuera Street is a one-way residential collector street consisting of one vehicle lane, a bike lane, and parking on both sides, except for the segment between Santa Rosa and Broad—which consists of two westbound vehicle lanes and parking on both sides. Multilane streets often induce higher travel speeds and exhibit higher collision rates than comparable streets with a single lane in each direction. Pismo Street exemplifies this trend quite clearly; despite a lower posted speed limit, the one-way two-laned segment of Pismo Street experiences twice the collision rate of the nearby one-lane segments. Transportation staff has reviewed existing and projected traffic levels for Pismo Street and have determined that a one-lane configuration would accommodate existing and future auto traffic demands, while offering the potential to reallocate street space in a way that better supports multimodal connectivity and safety. For this reason, staff is proposing to restripe Pismo Street between Santa Rosa and Broad to include one vehicle travel lane, street parking on both sides, and a buffered bike lane. This proposed configuration reduces exposure for pedestrians at intersection crossings and removes an existing gap in the crosstown bike lane network, providing a continuous westbound bike lane from Johnson Avenue (near San Luis Obispo High School) to Higuera Street. Packet Page 48 Item 5 Pismo Street Existing Cross Section Pismo Street Proposed Cross Section Neighborhood Traffic Management There are two neighborhoods located within Pavement Area 4 where Neighborhood Traffic Management (NTM) projects had previously been initiated: High Street and south Chorro Street. In 2018, the formal NTM program was put on hold due to a reprioritization of funding and a planned update to the program’s structure. As a result, both the High Street and Chorro Street NTM efforts were suspended temporarily. This has been particularly frustrating for the High Street neighborhood, where average vehicle speeds continue to exceed the City’s established residential speed targets by more than 10 miles per hour. The Roadway Sealing Project provides an opportunity for lower-cost interim treatments to provide immediate traffic calming relief until permanent solutions can be developed when the NTM program is analyzed for policy improvements and fully funded again. While ultimately, these neighborhoods will remain at the top of the NTM program queue and final improvement recommendations are still expected to be developed in collaboration with neighborhood representatives, speed humps and minor striping improvements along High Street and South Chorro Street are included as part of this Roadway Sealing Project to address excessive vehicle speeds until further improvements can be made. Packet Page 49 Item 5 An informal ballot was distributed to the High Street NTM neighborhood in January 2020 to gauge general support within the neighborhood for the interim NTM improvements proposed as part of roadway sealing project. Ballot responses found that that of the ballot participants, 66% were in support of these interim traffic calming measures. It should be noted that these interim measures do not preclude further adjustments and refinement when the NTM program is funded again in the future. The 2020 Roadway Sealing Project Includes “Quick Build” Elements totaling -- $150,000 Consistent with the Major City Goal for active transportation, and the principles of the Organization of the Future. Transportation staff have included “Quick Build” elements in this project as a cost and construction efficiency. The elements are noted below. When Council considers revisions to its Capital Improvement Project budget for this Financial Plan, on April 7, 2020, all “Quick Build” projects will be noted and at this time are anticipated to include this Paving Project, Bicycle and Pedestrian Crossing Improvements, Advance Planning and Design and Further Traffic Safety/Vision Zero Implementation at a total investment estimated to be over $700,000 at the time of this report’s writing. 1. 2+ miles of new neighborhood greenway installations, with unique pavement markings and signage to convey priority 2. Two-way cycle track to facilitate High Street offset street crossing along King/Nipomo Greenway 3. Hi-vis “ladder style” crosswalk markings at 24 crosswalks 4. Upgrading Chorro Street quick build traffic circles, filling in corner islands with decorative pavers 5. Pismo Street road diet (Santa Rosa to Broad), reduces street from two to one motor vehicle travel lane, providing width for buffered bike lanes 6. Install painted bulbouts along neighborhood greenways, along High Street, and at intersections near Hawthorne Elementary. Bulbouts along neighborhood greenways to include public artwork (Morro, King-Nipomo, Islay) Packet Page 50 Item 5 Cool Pavement Coatings Analysis City staff explored the potential incorporation of “cool” pavement coatings into this Project. The high-albedo coating, typically grey, is placed over the traditional slurry seal, which reflects more sunlight from the roadway surface and decreases the heat island effect found in urban areas. Staff researched cool pavement coatings from sources including the Lawrence Berkeley National Laboratory and federal guidance documents. The research described an increase in cost and greenhouse gas emissions as a result of the manufacture of cool pavement coatings. Further, a 50-year lifecycle analysis considering maintenance and initial cost of application could not provide a financial or environmental savings. Cool pavements were also found to make pedestrians less comfortable on hot days due to light reflection, even though the pavement itself felt cooler to the touch. Crucially, installation of cool pavements was found to be cost prohibitive at approximately $0.85 per square foot, triple the cost of the initial slurry seal application and not achievable within the current available budget for the planned work. Staff recommends the continued monitoring of advancements of cool pavement products and limited testing in the City until the products mature. Staff plans to develop a pilot project to implement cool paving products for Council’s funding consideration in a future financial plan. Previous Council or Advisory Body Action 1. Annual maintenance for public roadways, including streets resurfacing, was identified and included as a Major City Goal 2. On June 4, 2018, City Council approved the Project’s funding for the 2019-21 Financial Plan. 3. On November 21, 2019 the Active Transportation Committee made the recommendation to Council concerning the bikeway improvements described as part of the Annual Slurry Sealing Project and to amend the BTP to include the new alignment of the Nipomo/Hutton/King Neighborhood Greenway. Policy Context Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement 1. On November 13, 2019, an “open house” event (including games and food trucks)was held at Emerson Park informing the public of the project and its scope, focusing largely on the complete street elements proposed within the neighborhoods. Notification of the event consisted of an advertisement in The New Times, a mailer to residents within the project area, flyers posted within the neighborhood and social media posts. Over 70 people attended and actively participated using this new style of public “meeting”. 2.On November 15, 2019, a “pop-up” style outreach event was held at Hathorne Elementary School to inform faculty, staff, families and the neighborhood of the planned improvements. 3. An informational web page (Resealing2020.com) was created to provide background and updates on the different Project elements. The intent is that the webpage can continue to be used as a tool to provide information for the public throughout construction of the Project. Packet Page 51 Item 5 4. Residents along the High Street corridor participated in an informal ballot to gauge support for the interim striping and speed humps proposed along High Street. The results indicated that 66% of those who responded were in support. CONCURRENCE This Project has been reviewed and has concurrence from the Utilities, Fire, and Community Development departments. The Active Transportation Committee has reviewed the proposed pedestrian and cyclist improvements and provided its recommendation to Council. High Street residents participating in the NTM were informally polled in regard to the proposed improvements, which they concurred with by a margin of 66%. ENVIRONMENTAL REVIEW This project is categorically exempt from environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption will be filed through the Community Development Department. The complete street elements are consistent with the Land Use and Circulation Element as well as the Bicycle Transportation Plan, therefore consistent with the environmental review of those documents. While Council is asked to amend the Bicycle Transportation Plan to modify the route of the Beach/King Bicycle Boulevard to the Nipomo/Hutton/King Neighborhood Greenway, this alignment change is not considered substantially different than what was previously approved during environmental review. The route alignment simply shifts the route from one existing street network to a parallel existing street. In addition, the types of complete street improvements proposed as part of this Project would all be considered categorically exempt from CEQA in the category of Existing Facilities, maintenance activities. Therefore, no additional environmental review is triggered. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-21 Funding Identified: Yes Fiscal Analysis: This proposed project is recommended to be awarded prior to the new fiscal year with work not starting before July 1, 2020 when the Fiscal Year 2020-21 funding is available. Current funding is pending the recommended changes in the 2019-21 Capital Improvement Plan appropriations due to the escalating cost of construction. This project’s funding need will be included in a portfolio of projects that require funding revisions and presented to the Revenue Enhancement Oversight Committee on March 18, 2020 and forward to Council for consideration on April 7, 2020. This re-appropriation will augment the project’s available funding as it is considered of high priority. Packet Page 52 Item 5 If funding is not sufficient to support all of this project’s needs, only portions of the contract would be awarded to reflect the work that can be completed with the available budget. In order to allow for project implementation during the summer months, and to lessen impacts to the traveling public, staff is recommending this project be approved for advertisement now. There is currently a balance of $592,165, pending budget transfers from recently completed projects to support this work. Furthermore, the 2019-21 Financial Plan programmed funding of $1,798,567 for Fiscal Year 2020-21. Due to reductions in anticipated revenue from the Road Maintenance and Rehabilitation Act (RMRA), additional funding has been programmed for Council consideration with the request to re-appropriate project funding from the 2019-20 Capital Improvement Plan budget on March 17, 2020. Due to the number of multi-modal transportation improvements proposed in this plan, the Bicycle Facility Improvements Account (90572) will also contribute funding towards this project. This account has a current balance of $142,868 and will receive additional funding of $100,000 in Fiscal Year 2020-21. There are currently no funds in the Pedestrian and Bicycle Pathway Maintenance account (1000032) but it will receive $79,000 in Fiscal Year 2020-21. These funds will be used for the maintenance of the Bob Jones Bike Path identified in this project. The Parking Lot Maintenance account (1000031) possesses a current balance of $18,275. The Emerson Parking Lot maintenance is anticipated to cost $11,000. Sufficient funds exist for this project. Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund: 2,300,300$ State Gas Tax SB 1: Federal: Fees: Other: Total: 2,300,300$ Packet Page 53 Item 5 Street R&R Master Account (90346) Bicycle Facility Improvements (90572) Pedestrian and Bicycle Pathway Maintenance (1000032) Parking Lot Maintenance (1000031)Total Base Bid Estimate 1,595,000$ 150,000$ 1,745,000$ Add Alt A Estimate - Emerson Parking Lot:9,000$9,000$ Add Alt B Estimate - Bob Jones Bikepath:68,000$68,000$ Total Construction Estimate:1,595,000$ 150,000$ 68,000$ 9,000$1,822,000$ Contingency (15%):260,300$ 11,000$ 2,000$273,300$ Const. Managment Services 200,000$ 200,000$ Materials Testing 5,000$5,000$ Printing 500$500$ Total Project Estimate 2,060,300$ 150,000$ 79,000$ 11,000$2,300,300$ Available Project Balance:611,003$ 142,868$-$ 18,275$772,145$ Financial Plan Funding Available after 7/1/2020:1,798,567$ 7,132$ 79,000$ 20,000$1,904,699$ Total Funding after 7/1/2020:2,409,570$ 150,000$ 79,000$ 38,275$2,676,845$ Anticipated Remaining Balance After project:349,270$ -$ -$ 27,275$ 376,545$ Estimated Project Cost by Funding Sources Roadway Sealing, Emerson Parking Lot and Bob Jones Trail Projects ALTERNATIVES 1.Deny Authorization to advertise.The City Council may choose not to authorize project advertisement. Staff does not recommend this alternative because this is the ideal time to advertise paving projects for summer construction. Additionally, advertising the project now will position the City to begin work as early as possible and minimize impacts to the traveling public. 2.Deny adoption of resolution to modify the Bicycle Transportation Plan.The City Council may choose not to amend the Bicycle Transportation Plan. Staff does not recommend this alternative as the Active Transportation Committee has recommended this amendment and that the amended alignment provides better bicycle connectivity in support of the City’s major city goal of sustainable transportation. Packet Page 54 Item 5 Attachments: a - Draft Resolution b - COUNCIL READING FILE - Project Plans c - COUNCIL READING FILE - Project Specifications d - COUNCIL READING FILE - Area 4 and 5 Map e - Examples of Neighborhood Greenway Branding Elements Packet Page 55 Item 5 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE BICYCLE TRANSPORTATION PLAN (AMENDED 2019) TO UPDATE THE ALIGNMENT OF THE BEACH/KING NEIGHBORHOOD BICYCLE BOULEVARD WHEREAS,the City of San Luis Obispo (City) adopted a Vision Zero policy to eliminate all fatal traffic deaths and severe injuries by 2030; and WHEREAS,the Circulation Element to the General Plan has modal split objectives of 20 percent for bicycles and 18 percent for walking, carpool, and other forms of transportation; and WHEREAS,the potential environmental impacts of the 2013 Bicycle Transportation Plan have been evaluated in accordance with the California Environmental Quality Act (CEQA) pursuant to an initial environmental study (ER71 -13) and a Negative Declaration of environmental impact was adopted by the City Council pursuant to Resolution 10471 (2013 Series); and WHEREAS,the Bicycle Transportation Plan currently includes the Beach/King Bicycle Boulevard with an intent to provide a low traffic impact north/south through route for bicyclists that serves the downtown core for neighborhoods south of the downtown core and west of Broad Street; and WHEREAS,the City has determined that the term “neighborhood greenway” is a more fitting term than “bicycle boulevard” in terms of accurately representing the broad scope of elements typically included in bikeway projects that feature traffic calmed shared streets with pedestrian infrastructure, landscaping and aesthetic enhancements; and WHEREAS,the Nipomo/Hutton/King Neighborhood Greenway is the proposed alignment that is not identified in the 2013 Bicycle Transportation Plan; and WHEREAS,on November 21, 2019 the Active Transportation Committee reviewed the proposed alignment on Nipomo/Hutton/King at a public hearing and recommended that the City Council amend the alignment of the Beach/King Bicycle Boulevard in the Bicycle Transportation Plan to the Nipomo/Hutton/King alignment; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1.Findings. This Council, after consideration of the alignment Nipomo/Hutton/King Neighborhood Greenway as recommended by the Active Transportation Committee, staff recommendation, public testimony, and reports thereof, makes the following findings: Packet Page 56 Item 5 Resolution No. _____ (2020 Series) Page 2 R ______ a) The proposed alignment of the Nipomo/Hutton/King Neighborhood Greenway will promote bicycling and walking by making these activities safer, more accessible, and attractive; b) The proposed alignment will further General Plan goals to increase opportunities for bicycling, walking and other forms of sustainable transportation; c) The proposed alignment will provide greater potential to increase active transportation mode share due to a more accessible route to access neighborhoods both north and south of the downtown. SECTION 2.Approval. The 2013 Bicycle Transportation Plan is hereby amended by the City Council to update the Beach/King Bicycle Boulevard to the Nipomo/Hutton/King Neighborhood Greenway as depicted in Exhibit A and Resolution 10471 (2013 Series) approving the 2013 Bicycle Transportation Plan is superseded and the 2013 Bicycle Transportation Plan as amended shall hereafter be the official City’s official plan. Packet Page 57 Item 5 Resolution No. _____ (2020 Series) Page 3 R ______ SECTION 3.CEQA Determination. The City Council finds that the changed alignment from Beach/King is not a substantial change to the project and environmental review previously approved; the realignment will not result in any additional or more significant effects; and that the realignment does not require any new or different mitigations, render any previously infeasible mitigations to be feasible. Thus, the amendments to the Bicycle Transportation Plan do not trigger any of the circumstances set forth in CEQA Guideline Section 15162. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 58 Item 5 Packet Page 59 Item 5 Page intentionally left blank. Packet Page 60 Item 5 Department Name: Public Works Cost Center:5010 For Agenda of: March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Shelly Stanwyck, Assistant City Manager Prepared By:Jennifer Rice, Transportation Planner/Engineer III SUBJECT:REQUEST TO ADVERTISE FOR BROAD STREET/WOODBRIDGE PEDESTRIAN HYBRID BEACON, SPECIFICATION NUMBER 91609 RECOMMENDATION 1. Approve plans and specifications for the Broad Street/Woodbridge Pedestrian Hybrid Beacon (PHB), Specification No. 91609; and 2. Authorize staff to formally advertise for bids; and 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount of $406,436. DISCUSSION Background On December 2, 2014 the City Council adopted the General Plan Land Use and Circulation Element (LUCE) which included the Broad Street Area Plan. The Broad Street Area Plan includes street changes along Broad Street between South Street and Orcutt Road to improve connectivity and public safety for all street users. A recurring theme voiced at public hearings and workshops for the Broad Street Corridor Plan and the past two budget goal-setting processes was the need for safe pedestrian and bicycle crossings along this high traffic volume corridor - since there are currently no protected pedestrian crossings along the 0.7-mile stretch between South Street and Orcutt Road. Packet Page 61 Item 6 The 2017-19 Financial Plan included a new capital improvement project to install a pedestrian/bicycle crossing along the Broad Street corridor. In 2018, staff collected data, prepared studies and analyzed warrants at multiple potential crossing locations along the corridor and ultimately determined that (a) none of the intersections along this stretch of Broad Street met warrants for installation of a full traffic signal at this time, (b) two intersections (Broad/Woodbridge and Broad/Lawrence) currently met warrants for installation of a pedestrian hybrid beacon (PHB), and (c) of these two locations, the Broad/Woodbridge intersection was the preferred location for installation of a new crossing if funding only allows for crossing improvements at one intersection at this time. Broad/Woodbridge High Volume Pedestrian Crossing The intersection of Broad/Woodbridge currently has the highest pedestrian crossing volumes of any of the uncontrolled intersections studied along the Broad Street corridor due to the connectivity to Meadow Park to the west, and the neighborhood retail destinations on the east side of the street. This location also provides good connectivity to the surrounding street network on both sides of Broad Street. The City’s Bicycle Transportation Plan identifies Woodbridge as a future neighborhood greenway, which further supports the value of installing crossing improvements at this location. As future funding becomes available, staff will evaluate additional crossing improvements at Broad/Lawrence and other intersections as recommended in the Broad Street Area Plan. Project Plans and Specifications are provided for reference as Attachment A (Council Reading File). With approval of this request to advertise for bids, construction of this project could potentially begin by fall of 2020 after considering typical lead times for signal poles and equipment (averaging six months from order to delivery). Policy Context South Broad Street Area Plan was adopted by Council along with the approval of the Land Use and Circulation Element Update Project on December 2, 2014. Funding for design and a portion of construction costs of the Broad Street/Woodbridge crossing was approved in the FY2017-19 and FY2019-21 Financial Plans. Public Engagement Following the robust community engagement process for budget setting, a neighborhood meeting was held in July of 2017 where neighbors continued to voice support for pedestrian improvements, particularly a signalized pedestrian crossing. Neighborhood liaisons have had continued communication with City staff. It should also be noted that during the public outreach activities conducted during fall of 2019 for the City’s Active Transportation Plan, one of the most common requests expressed by residents was the need for a controlled crossing point along the south Broad Street corridor. Notice of the planned project and an informational flyer on PHBs were mailed to all owners and tenants within the adjacent neighborhood. Additional communication has been made with property owners directly adjacent to proposed construction, where construction may impact their property. Packet Page 62 Item 6 CONCURRENCE Project plans were reviewed by City Fire Department staff to assess potential concerns to emergency response providers related to the PHB system. The Fire Department did not have any concerns associated with these plans. As part of the FY2019-21 Financial Plan development, the City’s Active Transportation Committee recommended the Broad/Woodbridge crossing as a priority project for this budget cycle. ENVIRONMENTAL REVIEW The Broad and Woodbridge PHB is consistent with the September 2014 LUCE Update EIR, which incorporated the South Broad Street Area Plan, and therefore has been analyzed pursuant to the California Environmental Quality Act (CEQA). This project would not result in new or more severe environmental impacts than were identified in the LUCE Update EIR, nor will it have an effect on mitigation measures previously adopted upon certification of the LUCE Update EIR. FISCAL IMPACT Budgeted: Tentatively Budget Year: 2019-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund (Local Revenue Measure)$33,436 Infrastructure Investment Fund $80,000 State (Urban State Highway Account) $140,000 Federal Transportation Impact Fees (Citywide) $153,000 Other: Total $406,436 Project Costs Construction Estimate $361,500 Contingencies (12%)$44,936 Total Costs $406,436 Project Funding Current Balance $233,000 2019-20 CIP re-appropriation $173,436 Total Funding $406,436 Packet Page 63 Item 6 2019-20 Changes to the Capital Improvement Plan (CIP) Appropriations The 2017-19 and 2019-21 Financial Plans included funding for planning and design of the proposed project but did not fully fund construction. An additional $173,436 is required to fully fund project construction. Due to the escalating cost of construction, this funding need will be included in a portfolio of projects that require funding revisions and presented to the Revenue Enhancement Oversight Committee on March 18, 2020 and forward to Council for consideration on April 7, 2020. Staff is requesting authorization to advertise the project for construction bids ahead of this review; however, award of the contract will be contingent on approval of the changes in the 2019-21 CIP appropriations. If the additional funding is not approved and project bids exceed the publicly disclosed funding amount, other funding strategies will be evaluated, and staff will return to Council for authorization to proceed with alternate funding plans. ALTERNATIVES The Council may choose not to authorize advertising for construction prior to consideration of the 2019-21 CIP appropriations scheduled for Council’s consideration on April 7, 2020. However, this is not recommended because the improvements will provide a much-desired crossing for pedestrians and bicyclists to address a longstanding community need along this high-traffic corridor. Attachments: a - COUNCIL READING FILE - Plans and Specifications Packet Page 64 Item 6 Department Name: Public Works Cost Center:5010 For Agenda of:March 17, 2020 Placement:Consent Item Estimated Time:N/A FROM: Shelly Stanwyck, Assistant City Manager, Community Services Prepared By:Bryan Wheeler, Transportation Planner-Engineer III SUBJECT:AUTHORIZATION TO ADVERTISE AND AWARD RAILROAD SAFETY TRAIL TAFT TO PEPPER PROJECT, SPECIFICATION NO. 91375 RECOMMENDATION 1. Approve plans and specifications for the Railroad Safety Trail Taft to Pepper Project (Project), Specification No. 91375 and authorize staff to formally advertise for bids; and 2. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount of $5,070,600; and 3. Authorize the City Manager to award the construction management contract if the lowest responsible bid is within the publicly disclosed funding amount of $603,750; and 4.Authorize the City Manager to award the railroad services contracts for flagging and permitting, not to exceed the publicly disclosed funding amount of $110,000. DISCUSSION Background The Railroad Safety Trail (RRST) has long been one of the highest-priority multimodal transportation projects in the City of San Luis Obispo (City)—a crosstown, dedicated facility for pedestrians and bicyclists connecting the southern City limits north to California Polytechnic State University (Cal Poly). Over the past two decades, approximately 40 percent of the total four-mile trail has been completed and existing portions of the trail are enjoyed by over 1,000 pedestrians and cyclists per day. This Project proposal includes construction of the next segment of the RRST from Taft Street to Pepper Street. It segment was included in the 2013 Bicycle Transportation Plan (Attachment A) and supports the current Major City Goal to improve Sustainable Transportation in the City. The RRST extension from Taft Street to Pepper Street will encompass about 0.4 miles from the existing trail alignment on the west side of California Boulevard, near Taft Street, south along the existing bridge crossing over Highway 101, then shifting away from California Boulevard behind the California Highway Patrol (CHP) property to a new bicycle/pedestrian bridge crossing over the Union Pacific Railroad (UPRR) and connecting Phillips Lane to Pepper Street. A Project vicinity map and bridge rendering shown below (Figure 1 & 2). Packet Page 65 Item 7 Figure 1: Study Area Map Figure 2: Rendering of Railroad Safety Trail Bridge over UPRR Tracks between Phillips and Pepper Packet Page 66 Item 7 Caltrans Active Transportation Program Grant In 2015, the City applied for a Caltrans Active Transportation Program (ATP) grant for the Project and was awarded $3.24 million in funding towards Project construction. Over the past five plus years, the Project progressed with planning, design, environmental review, permitting and right-of-way acquisition to the current “shovel-ready”stage. After diligent negotiations with UPRR, the State, and a private property owner, all property acquisition necessary to construct the Project were completed in summer of 2019. At this time, staff has completed the Plans, Specifications and Estimates and the Project is ready to be advertised for construction. Project Scope of Work The construction package attached to this Report includes plans and specifications for construction of the RRST between Taft Street and Pepper Street. The designs include the following elements: a.Taft Street to Highway 101 Overcrossing –Separated Class I bicycle/pedestrian trail along the west side of California Boulevard from Taft Street to the Highway 101 overcrossing. b.Highway 101 Overcrossing –On-street Class IV protected two-way bikeway (“cycle track”) along the existing California Boulevard bridge crossing over Highway 101. A metal railing physically separates cyclists from motor vehicles and the existing sidewalk serves pedestrian travel along the bridge. c.Highway 101 Overcrossing to Phillips Lane –Separated Class I bicycle/pedestrian trail shifts behind the CHP headquarters connecting to the Phillips Lane cul-de-sac. d.Phillips Lane to Pepper Street –A new bicycle/pedestrian bridge connects Phillips Lane on the north side of the UPRR tracks south to Pepper Street. e.Other Elements 1. ADA curb ramps and path-of-travel upgrades at the Highway 101 bridge. 2. Widening of the Highway 101 offramp at California Boulevard to provide additional queue storage (a requirement for Caltrans approval) 3. Resurfacing and re-striping along California Boulevard from Taft Street to the Northbound Hwy 101 On- and Off-ramps. 4. Lighting system for the Class I trail. Construction plans, specifications,and engineer’s estimate are provided as City Council Reading Files as Attachment B thru D. Next Phases of the Railroad Safety Trail Project Upon completion of the Project, several gaps will remain along the RRST, totaling approximately 1.5 miles. With completion of planned and pending development within the Orcutt Area, the segment of the RRST between Tank Farm Road and the Jennifer Street Bridge is anticipated to be fully connected within the next few years. This leaves about a one-mile gap between Pepper Street and the Jennifer Street Bridge to complete the four-mile continuous crosstown route. The preferred alignment and type of facility to complete this final RRST gap will be identified in the City’s Active Transportation Plan, which is currently being drafted, and is scheduled for completion later in 2020. Packet Page 67 Item 7 Public Engagement This Project was vetted by the City’s Bicycle Advisory Committee in 2011 and has continued to be identified as a top project priority each year by the Active Transportation Committee (ATC). The project was included in the 2013 Bicycle Transportation Plan and 2014 General Plan Circulation Element, each of which included several public engagement opportunities. During public outreach activities conducted in fall of 2019 for the upcoming Active Transportation Plan, completion of the RRST was commonly expressed as one of the highest priority projects for community members. Policy Consistency This project is identified in the RRST Plan, adopted in 2002, the General Plan Circulation Element, and the City’s Bicycle Transportation Plan (BTP), adopted in 2013. Construction of this RRST segment furthers the adopted 2019-21 Major City Goal: Multi-Modal Transportation - Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range Transit Plan. CONCURRENCE The Project has been reviewed by the ATC and is a top priority for the committee to achieve the City’s Sustainable Transportation Major City Goal. Updates have been provided to the ATC throughout the project process. The project came before City Council on August 20, 2019 to approve the transfer of funds from the Transportation Impact Fee Program to the project. The RRST project was included in the Citywide Transportation Impact Fee (TIF) program, and staff requested the transfer of $2,894,163 in total from the Citywide TIF account to the RRST project account to fund the property acquisition ($496,000) and construction funding shortfall ($2,398,163). ENVIRONMENTAL REVIEW An initial study of this Project was conducted, and a Mitigated Negative Declaration (MND) was filed to the County of San Luis Obispo on May 19, 2017. All construction plans conform to those mitigations found in the MND. FISCAL IMPACT Budgeted: Yes Budget Year: 2017-18 Funding Identified: Yes Packet Page 68 Item 7 Fiscal Analysis: RRST- Taft to Pepper (91375) Project Costs Construction Costs $4,440,600 Construction Contingencies (15%)$630,000 Total Costs for this Construction Contract $5,070,600 Additional Items Outside Construction Contract (UPRR Items)$110,000 Construction Management & Materials Testing $603,750 Total for Construction $5,784,350 Project Funding State Funds (Caltrans ATP Grant & SHA Funds)$3,494,000 Local Funds (Citywide TIF & Local Revenue Measure)$2,516,108 Total Available Funds $6,010,108 Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund (LRM)$117,108 State (ATP Grant)$3,244,000 State (SHA)$250,000 Federal $0 Fees $0 Other: Citywide TIF $2,399,000 Total $6,010,108 The total construction cost for this project is estimated at $5,784,350, which includes construction costs and contingencies related to this bid package ($5,070,600), construction management and materials testing ($603,750) and related railroad flagging and permit review costs, ($110,000). Construction Management support for this project will be procured via a Request for Proposals (RFP) process through the City’s existing on-call construction management contracts. To date, $748,717 has been used or encumbered for property acquisition, environmental review and project design. ALTERNATIVES The Council may choose not to authorize advertising for construction at this time. However, this is not recommended because there is adequate funding for the project, the improvements will provide a much-desired expansion of the Railroad Safety Trail to Cal Poly for bicyclists and pedestrians, and this project will set up a critical link for the Railroad Safety Trail to connect with Downtown San Luis Obispo. Further, if a construction contract is not awarded by June 2020, the City would risk forfeiture of the $3.24 million in Caltrans ATP grant funds. Packet Page 69 Item 7 Attachments: a - Project Page from 2013 Bicycle Transportation Plan b - COUNCIL READING FILE - Project Plans c - COUNCIL READING FILE - Special Provisions d - COUNCIL READING FILE - Project Estimate Packet Page 70 Item 7 A-44 Introduction SanLuisObispo Cityof Appendix A: Implementation Projects - Eastern Area Bicycle Transportation Network14Bicycle Parking and Support Facilities2 Bicycling Education and Promotion3 Implementation and Funding4 Pave. Mgt. Zone 1 Segment: Taft to Phillips Project Description: Primary segment - Class I path from Taft to Phillips. Includes a 250 ft. (approx.) bridge spanning the railroad tracks from behind the Highway Patrol property, to Phillips St. Notes: This project segment is a piece of the trail alignment that was known in previous City of SLO Bike plans as RBP6. The RBP6 alignment ran at grade adjacent to the tracks from Hathway Ave. to Marsh St. This was also represented as a portion of “Phase 4” of RRM Design Group 2001 Railroad Safety Trail Project description. See Appendix H for naming references. *Cost Estimate from the 2011-13 Capital Improvement Plan. School Zones: Hawthorne Bishop Peak Class: I Cal i f o r n i a Philli ps Taft Hwy. 101 Mill Railroad Safety Trail Project Length (feet): 1,450 Estimated Cost: $1,280,000 Packet Page 71 Item 7 Page intentionally left blank. Packet Page 72 Item 7 Department Name: Public Works Cost Center:5002 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Shelly Stanwyck, Assistant City Manager Community Services Prepared By:Shelsie Kloepper, Engineer III SUBJECT:AWARD OF ISLAY HILL PARK PLAYGROUND RENOVATION, SPECIFICATION NO. 91654 RECOMMENDATION 1.Adopt a Resolution entitled “A Resolution of the Council of the City of San Luis Obispo, California, approving an Amendment to the Islay Hill Park Playground Renovation Project and related budgetary appropriations”(Attachment A); and 2. Award a construction contract (Attachment B) to R.E. Schultz Construction, Inc. in the amount of $334,705 for the Islay Hill Park Playground Renovation Project; and 3. Appropriate $38,521 from the Local Revenue Measure Fund balance to the project account and approve a budget transfer of $500,000 from the Playground Equipment Annual Asset Maintenance account to the project account. DISCUSSION Background On November 5, 2019 the City Council authorized inviting bids (Attachment C) for the Islay Hill Park Playground Renovation Project (Project), which is intended to replace playground equipment past its useful life. Three bids were received and publicly opened on January 30, 2020 (Attachment D). All of the bids were over the Engineer’s Estimate of $270,000. Upon review of the bid forms from the low bidder Papich Construction Co., Inc. (Papich) staff determined that the bid from Papich was non- responsive and did not meet the minimum Contractor Qualifications stated within the Notice to Bidders. Papich was notified on February 6, 2020 of the determination of non-responsiveness and provided five days to prepare written materials in response to staff’s determination (Attachment E). Papich did not respond to the City’s February 6, 2020 correspondence, therefore staff recommends rejecting Papich’s bid and awarding to the second low bid R.E. Schultz Construction, Inc. The table below summarizes the bid results. Engineer’s Estimate Papich Construction Co., Inc. R.E. Schultz Construction, Inc. R. Burke Corporation $270,000 $299,667 $334,705 $346,506 Packet Page 73 Item 8 R.E. Schultz Construction, Inc.’s references, license and registration with the Department of Industrial Relations has been verified. Staff therefore recommends awarding a construction contract to R.E. Schultz Construction, Inc. Previous Council or Advisory Body Action This project was approved by City Council on November 5, 2019 and authorized for advertising. Policy Context Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, City Council approval is required for Public Projects that cost over $175,000. Additionally, per the approval of the staff report at City Council on November 5, 2019 the project must be awarded by City Council if the construction contract is higher than the publicly disclosed funding amount of $300,000. Public Engagement Public engagement was done throughout the design of the project. Several public outreach events were conducted to discuss the park design. Additionally, staff reviewed and discussed the layout at two Parks and Recreation Commission Meetings. CONCURRENCE There is concurrence from the Parks and Recreation, Public Works, and Community Development Departments through their review and approval of the design. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15301 Class 1 (existing facilities) of the California Environmental Quality Act (CEQA) Guidelines because the project proposes to replace the existing playground with similar equipment. FISCAL IMPACT Budgeted: Yes Budget Year: 2017-19 Funding Identified: Yes Fiscal Analysis: Funding Sources Current Project Funding Annualized On-going Cost Additional Budget Request Total Project Cost General Fund $580,000 N/A $38,521 $618,521 State Federal Fees Other: Total $580,000 $38,521 $618,521 Packet Page 74 Item 8 Design $68,521 Construction:$334,705 Contingencies(17%):$60,295 Materials Testing and Special Inspection $5,000 City Playground Equipment Purchase $150,000 Total Cost of Project:$618,521 Construction Budget (1000033)$500,000 Design Budget (91654)$80,000 Additional Funding Required $38,521 Islay Hill Park Playground Renovation Project, Specification No. 91654 Project Cost The Islay Hill Park Playground Renovation project was originally identified with funding for design in the 2017-2019 Financial Plan, Section E –Capital Improvement Plan, page E2-10 through E2-11. The 2019-2021 Financial Plan appropriated $500,000 for this project in FY2019 to fund construction. This project is 100% funded by the Local Revenue Measure. There is currently a balance of $500,000 available to the project in the Playground Equipment Replacement account (1000033) and $11,479 remaining from the design phase (project account 91654). An additional $38,521 of project funding is recommended to be allocated from the Local Revenue Measure Fund. The Local Revenue Measure Fund currently has a balance of $1,528,000 that has yet to be encumbered. ALTERNATIVES Deny Award and Fund Allocation.The City Council could choose to deny approval to award and the allocation of additional funds. This is not recommended because this project is critical to provide compliant playground equipment to the park. Attachments: a - Draft Resolution b - Construction Contract with R.E. Schultz Construction, Inc. c - Council Agenda Report from November 5, 2019 d - Bid Results Summary e - Notification of Non-Responsive Bid Letter Packet Page 75 Item 8 R _______ RESOLUTION NO. ________ (2020 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE ISLAY HILL PARK PLAYGROUND RENOVATION PROJECT AND RELATED BUDGETARY APPROPRIATIONS WHEREAS,the City of San Luis Obispo’s (City) 2018-19 Financial and Capital Improvement Plan Supplement designated $80,000 toward the Islay Hill Park Playground Renovation project (“Project”)for design; and WHEREAS,the City’s 2019-21 Financial and Capital Improvement Plan designated an additional $500,000 toward the Project for construction; and WHEREAS,on November 12, 2019, the City Council authorized the invitation for bids based on the Engineer’s Estimate of $270,000 and approved a sole source purchase from GameTime Equipment in an amount not to exceed $150,000 for purchase of playground equipment; and WHEREAS,the lowest responsible bid received for the project was $334,705, bringing the total project budget needed to $618,521 due to the cost of design, construction, materials testing, special inspection, playground equipment purchases and project contingencies and requiring additional funding to proceed, and; WHEREAS,City staff has requested $38,521 in additional budget allocation from the Local Revenue Measure Fund; and WHEREAS, the Project is a high priority project, warranting the use of funding from the Local Revenue Measure Fund. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: Packet Page 76 Item 8 Resolution No. ______ (2020 Series) Page 2 R _______ SECTION 1.The City Council authorizes staff to transfer $38,521 from the Local Revenue Measure Fund to the Project. Upon motion of ___________________, seconded by _______________________, and on the following roll call vote: AYES: NOTE: ABSENT: The foregoing resolution was adopted this _____ day of _____________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED: 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 __________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 77 Item 8 Packet Page 78 Item 8 Packet Page 79 Item 8 Packet Page 80 Item 8 Packet Page 81 Item 8 Packet Page 82 Item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McGuire, Senior Civil Engineer SUBJECT:MARSH STREET BRIDGE REPLACEMENT, SPECIFICATION NO. 90480 RECOMMENDATION 1. Award a contract to Souza Construction Inc. in the amount of $4,335,572 for the “Marsh Street Bridge Replacement, Specification No. 90480”(Attachment A); and 2. Authorize the City Manager to issue construction contract change orders in excess of $100,000 if within available budget; and 3. Authorize the City Manager to amend the Construction Management Services Agreement in excess of $50,000 if within available budget. DISCUSSION Low Bid Qualification and Recommended Award to Souza Construction Inc. On February 20, 2020, bids were opened for the Marsh Street Bridge Replacement project (Project). Only one bid was received and was under the Engineer’s Estimate of $4,480,000. The bid from Souza Construction Inc. of San Luis Obispo, at $4,335,572 is the apparent low bid. Engineer’s Estimate Souza Construction $4,480,000 $4,335,572 Staff reviewed the bid documents, legal requirements, and Disadvantaged Business Enterprise (DBE) goal documentation, and concluded that the apparent low bidder provided the lowest cost responsive bid. Staff therefore recommends awarding the construction contract to Souza Construction Inc. for the Project. Traffic Impacts of Marsh Street Bridge Project and Public Outreach 1.Plan to Address Needed Traffic Disruption For many months, the replacement of the Marsh Street Bridge will result in the temporary disruption to downtown traffic flows –traffic will be detoured around the project site. As noted in the figure below, Marsh Street, from the west side of the bridge (midblock) to the intersection of Santa Rosa Street, will be closed to all forms of through traffic but with access to the businesses located adjacent to the project. Packet Page 89 Item 9 During construction, vehicular, bus, bicycle, and pedestrian traffic on Marsh Street, will follow a detailed traffic detour plan (see below). The plan diverts traffic around the bridge construction site while still providing access and parking to the businesses adjacent to the project. Given the one- way directional flow of Marsh Street, beginning at Marsh Street and Highway 101, directional signage will be placed to alert motorists well in advance of the approaching detour and offer detour routes to “get around the construction”. Modifications to traffic signals, street striping, and the removal of parking on some blocks, will assist in keeping traffic flowing throughout the downtown corridor (including cyclists) and will be closely monitored during construction with adjustments made to address unexpected impacts. Signage will also play an important factor in alerting the public that the businesses adjacent to the Marsh Street Bridge will remain open during construction. The portion of Marsh Street accessible from the intersection of Osos Street to the bridge will be converted to two-way traffic with 30- minute free parking available for customers. Public Outreach & Information With a project that will have a major impact to the residents and visitors of San Luis Obispo, a public outreach campaign is of utmost importance. The Project includes funds for communications and Verdin Marketing, a consultant as part of the Construction Management team, will provide that service. To notify residents, visitors and businesses about the start of this Project, a Fact Sheet has been developed (Attachment C). Further, the City’s Contract Communications Coordinator has posted on social media with general information about the upcoming project with photos and the detour plan from the Fact Sheet. A broader communication plan to effectively disseminate Project status, upcoming impacts, and details is being developed by Verdin. This plan will inform the public of the Project benefits and the impacts and will be distributed via the City’s social media platforms, Downtown SLO and television/radio outlets, among others. Upon Council’s authorization of award, staff will immediately work with the Contractor to set a project start date, and that information will be shared with the public via the communications plan that will be available and regularly updated through the City’s e-notification system and web updates. Packet Page 90 Item 9 Previous Council Action On November 19, 2019, the City Council authorized the execution of extension agreements and temporary construction easements with the property owners adjacent to the Marsh Street Bridge. On September 17, 2019, the City Council approved staff to advertise the Project for construction bids and authorized the City Manager to award a construction contract to the lowest responsible bidder (Attachment B). On July 16, 2019, the City Council approved a Request for Proposals and authorized staff to advertise for Construction Management Services for the Project.Council also delegated contract award authority to the City Manager. On October 16, 2018, the City Council appropriated an additional $1,406,160 in grant funding to match the total Project amount allocated by Caltrans. On August 21, 2018, the City Council approved the Temporary Construction and Permanent Easement Agreements with the property owners adjacent to the Marsh Street Bridge. On January 9, 2018, the City Council, in closed session, authorized staff to enter into property acquisition negotiations with the properties adjacent to the Marsh Street Bridge. On May 2, 2017, the City Council approved adoption of the Final Environmental Impact Report. On January 22, 2013, the City Council approved the replacement of the Marsh Street Bridge. Policy Context As the City Council approved the advertisement for construction of this Project and the bridge replacement continues to be a high City priority, staff requests the Council approve the award of a contract so that construction work can begin in April 2020. Per the 2015 Financial Management Manual, Page 225-2, Council must authorize change orders in excess of $100,000. Staff are recommending that Council delegate this authority to the City Manager to minimize risks of procedural delay to the project. Change Orders would only be authorized if the increases are within available budget. Per the 2015 Financial Management Manual, Page 255-2, Council must authorize amendments to consultant service contracts in excess of $50,000. Staff are also recommending that Council delegate this authority to the City Manager to minimize risks of service gaps to the Project should unforeseen construction delays or extensions occur related to above referenced contract change orders. Amendments would only be authorized if the increases are within available budget. Public Engagement The Project was identified and included in the 2015-17 Financial Plan and identified as a Council Goal. Packet Page 91 Item 9 CONCURRENCE Construction has been approved to proceed by the California Department of Transportation. ENVIRONMENTAL REVIEW The City Council approved adoption of the Final Environmental Impact Report (FEIR) on May 2, 2017. In addition to National Environmental Policy Act (NEPA) approval with the FEIR, environmental permitting was completed in December 2019 with the Department of Fish & Wildlife, the Regional Water Quality Control Board, the Army Corps of Engineers and the State Historic Preservation Office. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 Funding Identified: Yes Fiscal Analysis: Construction: $4,335,572 Construction Contingencies: $448,000 Printing and Advertising: $54 Construction Management Services: $598,991 Temporary Construction Easements: $147,175 Total Estimated Project Cost: $5,529,792 Capital Outlay Fund: $5,572,515 Local Sales Tax Fund: $725,089 Sewer Fund: $261,444 Current Project Budget: $6,559,048 Remaining Funds: $1,029,256 Marsh Street Bridge Replacement, Specification No. 90480 The Project was approved as part of the 2015-17 Financial Plan. Currently, there is $6,559,048 in the project account, enough to fund the construction award and other associated costs of this project identified in the table. This project is 89% funded by the Highway Bridge Program (HBP) grant funding with a 11% City Local Revenue Measure match. Any funding leftover upon the completion of the Project will be returned to Caltrans. Packet Page 92 Item 9 ALTERNATIVES Deny or defer executing the contract.The City Council could choose to not authorize or defer construction. Staff does not recommend this alternative. The City would be unable to proceed with the construction phase. Construction would be delayed until 2021 with additional costs for renewed easements with the adjacent property owners and extension of the contract for Construction Management Services. Due to this significant delay, Caltrans could suspend the project funding and require reimbursement for funds already spent. Attachments: a - Construction Agreement with Souza Engineering Contracting, Inc. b - COUNCIL READING FILE - Council Agenda Report from September 17, 2019 c - Fact Sheet Packet Page 93 Item 9 AGREEMENT THIS AGREEMENT, made on ________________, by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County,California (hereinafter called the Owner) and Souza Engineering Contracting, Inc. dba Souza Construction (hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of MARSH STREET BRIDGE REPLACEMENT352-(&7, SPECIFICATION NO. 90480 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: BID ITEM LIST Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 1 070030 LEAD COMPLIANCE PLAN LS 1 $18,150.00 $18,150.00 2 080050 PROGRESS SCHEDULE (CPM) LS 1 $3,300.00 $3,300.00 3 100100 CONSTRUCTION WATER LS 1 $5,500.00 $5,500.00 4 120090 CONSTRUCTION AREA SIGNS LS 1 $8,520.00 $8,250.00 5 120100 TRAFFIC CONTROL SYSTEM LS 1 $18,000.00 $18,000.00 6 120149 TEMPORARY PAVEMENT MARKING (PAINT) SQFT 376 $7.15 $2688.40 Packet Page 94 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 7 120159 TEMPORARY TRAFFIC STRIPE (PAINT) LF 979 $8.80 $8,615.20 8 120165 CHANNELIZER (SURFACE MOUNTED) EA 16 $55.00 $880.00 9 120185 6" TEMPORARY PIPE BOLLARD EA 4 $1,900.00 $7,600.00 10 128651 PORTABLE CHANGEABLE MESSAGE SIGN EA 3 $8,000.00 $24,000.00 11 129000 TEMPORARY RAILING (TYPE K) LF 40 $86.00 $3,440.00 12 130100 JOB SITE MANAGEMENT LS 1 $80,000.00 $80,000.00 13 130300 PREPARE STORM WATER POLLUTION PREVENTION PLAN AND EXECUTION LS 1 $15,000.00 $15,000.00 14 130401 TEMPORARY CREEK DIVERSION SYSTEM EA 1 $107,000.00 $107,000.00 15 131103 WATER QUALITY SAMPLING AND ANALYSIS DAY EA 20 $2,310.00 $46,200.00 16 131104 WATER QUALITY MONITORING REPORT EA 5 $440.00 $2,200.00 17 131105 WATER QUALITY ANNUAL REPORT EA 1 $1,100.00 $1,100.00 18 160110 TEMPORARY HIGH- VISIBILITY FENCE LF 452 $10.00 $4,520.00 19 162000 RESIDENT ENGINEERS OFFICE LS 1 $32,450.00 $32,450.00 20 170103 CLEARING AND GRUBBING LS 1 $17,000.00 $17,000.00 21 190101 F ROADWAY EXCAVATION CY 355 $110.00 $39,050.00 22 192020 F STRUCTURE EXCAVATION (TYPE D) CY 1,452 $108.00 $156,816.00 23 192049 F STRUCTURE EXCAVATION (SOLDIER PILE WALL) CY 88 $83.00 $7,304.00 24 193003 F STRUCTURE BACKFILL (BRIDGE) CY 784 $253.00 $198,352.00 25 193006 F STRUCTURE BACKFILL (SLURRY CEMENT) CY 18 $419.00 $7,542.00 26 193029 F STRUCTURE BACKFILL (SOLDIER PILE WALL) CY 19 $117.00 $2,223.00 Packet Page 95 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 27 193116 F CONCRETE BACKFILL (SOLDIER PILE WALL) CY 20 $540.00 $10,800.00 28 193119 F LEAN CONCRETE BACKFILL CY 8 $1,107.00 $8,856.00 29 200010 REMOVE AND REPLACE WITH 24-INCH BOX MARINA MADRONE EA 1 $2,310.00 $2,310.00 30 210430 HYDROSEED SQFT 10600 $0.37 $3,922.00 31 260203 CLASS 2 AGGREGATE BASE CY 89 $296.00 $26,344.00 32 390132 HOT MIX ASPHALT (TYPE A) TON 462 $168.00 $77,616.00 33 390135 HOT MIX ASPHALT (LEVELING COURSE) TON 112 $188.00 $21,056.00 34 398001 REMOVE ASPHALT AND CONCRETE PAVEMENT CY 285 $45.00 $12,825.00 35 490326 P STEEL SOLDIER PILE (W 14 X 132) LF 198 $153.00 $30,294.00 36 490400 24" DRILLED HOLE LF 193 $336.22 $64,890.46 37 495000 P MICROPILE EA 83 $8,110.00 $673,130.00 38 510051 F STRUCTURAL CONCRETE, BRIDGE FOOTING CY 142 $562.00 $79,804.00 39 510053 F STRUCTURAL CONCRETE, BRIDGE CY 300 $995.00 $298,500.00 40 510054 F STRUCTURAL CONCRETE, BRIDGE (POLYMER FIBER) CY 308 $1,000.00 $308,000.00 41 510072 F STRUCTURAL CONCRETE, BARRIER SLAB CY 20 $2,014.00 $40,280.00 42 512525 P-F PRECAST CONCRETE LAGGING EA 52 $890.00 $46,280.00 43 520102 P-F BAR REINFORCING STEEL (BRIDGE) LB 143,820 $1.65 $237,303.00 44 520115 P-F BAR REINFORCING STEEL (GALVANIZED) LB 1,598 $4.00 $6,392.00 45 568062 PEDESTRIAN BARRICADE EA 8 $800.00 $6,400.00 46 590120 CLEAN AND PAINT STEEL SOLDIER PILE LS 1 $12,299.10 $12,299.10 47 600097 BRIDGE REMOVAL LS 1 $195,000.00 $195,000.00 Packet Page 96 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 48 602000 VIBRATION MONITORING LS 1 $33,000.00 $33,000.00 49 641107 18" PLASTIC PIPE LF 13 $125.00 $1,625.00 50 700618 CATCH BASIN (TYPE 3355) EA 1 $9,000.00 $9,000.00 51 710136 REMOVE PIPE LF 155 $56.00 $8,680.00 52 710158 REMOVE CATCH BASIN EA 1 $1,300.00 $1,300.00 53 710246 MODIFY CATCH BASIN EA 2 $6,000.00 $12,000.00 54 722020 GABION CY 2 $1,400.00 $2,800.00 55 723060 ROCK SLOPE PROTECTION (300 LB, CLASS IV, METHOD B) (CY) CY 303 $149.00 $45,147.00 56 729011 P ROCK SLOPE PROTECTION FABRIC (CLASS 8) SQYD 548 $11.00 $6,028.00 57 730010 MINOR CONCRETE (CURB) (LF) LF 20 $126.00 $2,520.00 58 731504 MINOR CONCRETE (CURB AND GUTTER) LF 773 $61.00 $47,153.00 59 731516 MINOR CONCRETE (DRIVEWAY RAMP) SF 719 $30.00 $21,570.00 60 731630 MINOR CONCRETE (MISSION STYLE SIDEWALK) LF 353 $303.00 $106,959.00 61 731710 REMOVE CONCRETE CURB LF 20 $10.00 $200.00 62 731840 REMOVE CONCRETE (CURB AND GUTTER) LF 421 $16.00 $6,736.00 63 731860 REMOVE CONCRETE (CURB, GUTTER, AND SIDEWALK) LF 353 $46.00 $16,238.00 64 735000 PARKING BUMPER (PRECAST CONCRETE) EA 3 $101.00 $303.00 65 770000 ABANDON SEWER LS 1 $5,500.00 $5,500.00 66 770002 RELOCATE PARKING METER EA 6 $448.00 $2,688.00 67 77003 RESET BIKE RACK EA 1 $1,000.00 $1,000.00 68 770005 INSTALL SEWER SYPHON (6" PLASTIC PIPE) LF 255 $634.00 $161670.00 Packet Page 97 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 69 770006 10" PLASTIC PIPE (SEWER) LF 19 $880.00 $16,720.00 70 770007 8" DUCTILE IRON PIPE LF 97 $352.00 $34,144.00 71 770010 REPLACE UTILITY COVER EA 1 $2,619.00 $2,619.00 72 770011 REMOVE UTILITY COVER EA 1 $800.00 $800.00 73 770013 15" PLASTIC PIPE (SEWER) LF 17 $229.00 $3,893.00 74 770014 6" PLASTIC PIPE LF 80 $107.00 $8,560.00 75 770015 WATER SERVICE BOX AND COVER EA 3 $433.00 $1,299.00 76 770020 INSTALL UTILITY COVER EA 2 $1,500.00 $3,000.00 77 770040 PIPE SEALANT EA 2 $1,500.00 $3,000.00 78 770060 MANHOLE COVER AND ACCESS BOX EA 1 $1,700.00 $1,700.00 79 770100 TREE WELL EA 4 $3,500.00 $14,000.00 80 770200 RESTRAINT HARNESS EA 24 $1,000.00 $24,000.00 8770210 8" GATE VALVE EA 2 $2,500.00 $5,000.00 8770212 8" TEMPORARY BLOWOFF VALVE EA 2 $6,200.00 $12,400.00 8770410 P MANHOLE FRAME AND COVER EA 4 $1,600.00 $6,400.00 8770411 MANHOLE EA 4 $24,906.72 $99,626.88 8770412 INSTALL WYE AND CONNECT TO SEWER LATERAL EA 2 $1,800.00 $3,600.00 8770415 SEWER BYPASS LS 1 $25,000.00 $25,000.00 8770501 PLACE PARKING METER EA 2 $441.00 $882.00 8774049 MANHOLE COVER AND ACCESS BOX EA 1 $2,500.00 $2,500.00 8774050 ADJUST UTILITY COVER TO GRADE EA 9 $440.00 $3,960.00 780465 NON SACRIFICIAL ANTI- GRAFFITI COATING LS 1 $4,600.00 $4,600.00 9800100 TEMPORARY FENCE (TYPE CL-6) LF 338 $37.95 $12,827.10 9802501 4' CHAIN LINK GATE (TYPE CL-6) EA 2 $660.00 $1,320.00 Packet Page 98 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 9802560 10' CHAIN LINK GATE (TYPE CL-6) EA 4 $962.50 $3,850.00 9803020 REMOVE FENCE LF 20 $33.00 $660.00 9803110 RECONSTRUCT WOOD FENCE LF 20 $55.00 $1,100.00 9810120 REMOVE PAVEMENT MARKER EA 18 $38.50 $693.00 9810230 PAVEMENT MARKER (RETRO REFLECTIVE) EA 39 $44.00 $1,716.00 9820250 REMOVE ROADSIDE SIGN EA 10 $159.50 $1,595.00 9820565 REMOVE FOUNDATION, RESET POLE AND MAST ARM PER ES-7K EA 1 $4,000.00 $4,000.00 820750 FURNISH SINGLE SHEET ALUMINUM SIGN (0.063" UNFRAMED) SF 35 $22.00 $770.00 10820840 ROADSIDE SIGN - ONE POST EA 10 $330.00 $3,300.00 10820860 INSTALL ROADSIDE SIGN (STRAP AND SADDLE BRACKET METHOD) EA 1 $385.00 $385.00 10832005 P MIDWEST GUARDRAIL SYSTEM LF 37.5 $77.00 $2,887.50 10833032 P-F CHAIN LINK RAILING TYPE 7 (MOD) LF 20 $132.00 $2,640.00 10833190 F CONCRETE, SIDEWALK (BRIDGE, MISSION STYLE) LF 111 $282.00 $31,302.00 10833191 F CONCRETE RAILING TYPE C411 LF 98 $910.00 $89,180.00 10839735 F CONCRETE BARRIER (TYPE 742) LF 40 $480.00 $19,200.00 10839800 P BRIDGE PLAQUE LS 1 $4,100.00 $4,100.00 10840504 4" THERMOPLASTIC TRAFFIC STRIPE LF 1084 $5.00 $5,420.00 1840505 6" THERMOPLASTIC TRAFFIC STRIPE LF 750 $6.00 $4,500.00 11840506 8" THERMOPLASTIC TRAFFIC STRIPE LF 255 $7.00 $1,785.00 11840515 THERMOPLASTIC PAVEMENT MARKING SQFT 980 $12.00 $11,760.00 Packet Page 99 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 Item Bid Item P-Item Unit of Estimated Unit Price Item Total No.Code (1)F Description Measure Quantity (in figures)(in figures) 11846030 REMOVE THERMOPLASTIC TRAFFIC STRIPE LF 1071 $8.00 $8,568.00 11846035 REMOVE THERMOPLASTIC PAVEMENT MARKING SQFT 271 $10.00 $2,710.00 11860150 P SIGNAL AND LIGHTING (TEMPORARY) LS 1 $18,000.00 $18,000.00 11860403 P BRIDGE AND STREET LIGHTING LS 1 $102,000.00 $102,000.00 11999990 MOBILIZATION LS 1 $250,000.00 $250,000.00 P=ELIGIBLE FOR PROGRESS PAYMENT F=FINAL PAY ITEM BID TOTAL: $4,335,571.64 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT:The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and Information for Bidders 2. Standard Specifications and Engineering Standards 3. Special Provisions, any Addenda, Plans and Contract Change Orders 4. Caltrans Standard Specifications and Standard Plans 2015 5. Accepted Bid and Bid Bond 6. List of Subcontractors 7. Public Contract Code Sections 10285.1 Statement 8. Public Contract Code Section 10162 Questionnaire 9. Public Contract Code Section 10232 Statement 10.Labor Code Section 1725.5 Statements 11.Bidder Acknowledgements 12.Qualifications 13.Non-collusion Declaration 14.Agreement and Bonds 15.Insurance Requirements and Forms Packet Page 100 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of AGENCY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City. ARTICLE V.It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. Packet Page 101 Item 9 DocuSign Envelope ID: 1D3E0F66-2FC9-4B64-8AF5-9554090D4390 IN WITNESS WHEREOF,the parties to these presents have hereunto set their hands this year and date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation __________________________________ Derek Johnson, City Manager APPROVED AS TO FORM CONTRACTOR: Souza Engineering Contracting Inc. dba Souza Construction ________________________________________________________________ J. Christine Dietrick City Attorney Steve A. Souza President ________________________________ Terry J. 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KWE͊dŚĞƉĂƌŬŝŶŐůŽƚƐĨŽƌDĞƌƌŝůů>ǇŶĐŚ͕EĞǁdŝŵĞƐĂŶĚWĂĐŝĨŝĐtĞƐƚĞƌŶĂŶŬǁŝůůďĞĂĐĐĞƐƐŝďůĞ ĂƐǁĞůůĂƐϯϬͲŵŝŶƵƚĞĨƌĞĞƉĂƌŬŝŶŐĨŽƌ^ƵŶƐĞƚEŽƌƚŚĂƌǁĂƐŚ͕dŚĞWŚŽƚŽ^ŚŽƉĂŶĚdƌƵĞtĞƐƚ dĂƚƚŽŽ͘ƵĞƚŽŝƚƐƉƌŽǆŝŵŝƚǇƚŽƚŚĞďƌŝĚŐĞ͕ƚŚĞĞŶƚƌĂŶĐĞƚŽƚŚĞĂsŝƚĂŝĂůǇƐŝƐĞŶƚĞƌǁŝůůďĞ ĐůŽƐĞĚďƵƚĂĐĐĞƐƐƚŽƚŚĞŝƌƉĂƌŬŝŶŐůŽƚǁŝůůďĞƚĞŵƉŽƌĂƌŝůǇĨƌŽŵWĂĐŝĨŝĐ^ƚƌĞĞƚ͘ŚĞŶŐWĂƌŬǁŝůů ƌĞŵĂŝŶŽƉĞŶĂƐǁĞůů͘ Packet Page 116 Item 9 Department Name: Utilities Cost Center:6001 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Aaron Floyd, Utilities Director Prepared By:Mychal Boerman, Utilities Deputy Director –Water Jennifer Metz, Utilities Projects Manager SUBJECT:DISINFECTION BYPRODUCT REDUCTION AND PIPE GALLERY IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000044, CONSTRUCTION CONTINGENCY RECOMMENDATION Approve a Resolution (Attachment A) authorizing the use of $250,000 from Water Fund Unreserved Working Capital to increase the available construction contingency for the completion of the Disinfection Byproduct Reduction and Pipe Gallery Improvements Project, Specification No. 1000044. DISCUSSION Background –Existing Approved Water Quality Project To enable the City of San Luis Obispo (City) to maintain water quality regulatory compliance related to disinfection byproduct levels and address the corrosion issues within the pipe gallery, the City Council approved advertisement of the Disinfection Byproduct Reduction (DBR) and Water Treatment Plant (WTP) Pipe Gallery Improvements Project (Project) on October 22, 2019 (Attachment B). The Engineer’s Estimate for the project was $1,817,000. The Project contingency was budgeted at 25 percent due to the complexity of the proposed pipe gallery improvements and consequence of failure. Total Project costs were $2,674,250 which included $516,750 for construction and construction management contingencies. The award of the Project was approved by the City Manager Report (Attachment C) on November 18, 2019 with a construction contract totaling $1,990,700. Because the bid exceeded the Engineer’s Estimate, $173,700 of available project contingencies were utilized to make up the difference. Project Site Challenges and Need for Increased Contingencies Construction began on December 7, 2019. Since then, the Project has encountered unforeseen changed site conditions (unexpected rock and concrete removal) and other operational challenges resulting in the construction of a treated water flow bypass required to sustain prolonged WTP shutdowns. To ensure adequate funding is available for the completion of the Project, staff is recommending the City Council approve an increase to the Project construction contingency in the amount of $250,000 from Water Fund, Unreserved Working Capital (Attachment D). Packet Page 117 Item 10 Previous Council or Advisory Body Actions The City Council approved advertisement of the Project on October 22, 2019. Consistent with Council direction, the award of the Project was approved by the City Manager Report on November 18, 2019. Policy Context The U.S. Environmental Protection Agency and the State Water Resources Control Board prescribe regulations that limit certain contaminants in water provided by public water systems, including disinfection byproducts, specifically total trihalomethanes, or TTHMs. Consistent with the General Plan, Water and Wastewater Management Element, Policy A2.2.1, the City utilizes multiple water resources to meet its water supply needs. Operationally, this means the City uses a blend of water sources to meet the community’s water needs –from Salinas, Whale Rock, and Nacimiento Reservoirs. Public Engagement The City posts its Water Quality Consumer Confidence Report (Water Quality Report) annually on the City’s webpage and mails a printed copy to all customers. Public water systems are required by state and federal law to notify users of any exceedance of any water quality standard and any other noncompliance events affecting their water system. CONCURRENCE Public Works staff concurs with this request. ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) per categorical exemption 15301(b), Existing Facilities. The Community Development Department issued a Notice of Exemption on September 9, 2019. FISCAL IMPACT Budgeted: Yes Budget Year: FY 19-20 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Available Budget Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Water Fund $2,674,250 0 $2,924,250 Total $2,674,250 0 $2,924,250 Packet Page 118 Item 10 Staff recommends increasing the construction contingencies for the Project in the amount of $250,000, thereby increasing the total project budget from $2,674,250 to $2,924,250. Water Fund Unreserved Working Capital has an available balance of over $14 million to accommodate the recommendation. ALTERNATIVE Do not approve the Resolution. The Council may elect not to approve the Resolution authorizing additional contingency; however, staff does not recommend this alternative as limited contingency is available for project completion. Attachments: a - Draft Resolution b - Council Agenda Report from October 22, 2019 c - Council Agenda Report from November 15, 2019 d - Budget Amendment Request Form Packet Page 119 Item 10 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER FUND UNRESERVED WORKING CAPITAL TO INCREASE CONSTRUCTION CONTINGENCIES FOR THE DISINFECTION BYPRODUCT REDUCTION AND WATER TREATMENT PLANT PIPE GALLERY IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000044 WHEREAS,to ensure that water is safe to drink, the U.S. Environmental Protection Agency and the State Water Resources Control Board prescribe regulations that limit certain contaminants in water provided by public water systems, including total trihalomethanes, or TTHMs; and WHEREAS,the City’s 2015 Potable Water Distribution System Operations Master Plan was approved by the City Council in 2016. The Master Plan discussed the challenges in meeting Stage 2 disinfection byproducts water quality regulations associated with tank turnover and water age; and WHEREAS,on March 19, 2019, the City Council approved a budget of $1,850,000 for the Water Treatment Plant (WTP) and Water Distribution System Disinfection Byproduct Reduction Project (Project); and WHEREAS,in June 2019, the City Council approved 2019-21 Financial Plan, Capital Improvement Program, identified a total Project budget of $1,850,000; and WHEREAS,on July 8, 2019, the City Manager approved an amendment to the design scope of the Project to include improvements to the WTP pipe gallery in response to severe pipe corrosion and the high consequence of failure; and WHEREAS,on October 22, 2019, the City Council approved a total Project budget of $2,674,250 for Project construction; and WHEREAS,on November 18, 2019 the City Manager approved the award of the Project with a construction contract totaling $1,990,700 utilizing 173,700 of available contingencies; and WHEREAS,to ensure adequate funding is available for completion of the Project, staff is recommending the City Council approve use of $250,000 from Water Fund, Unreserved Working Capital; and WHEREAS,a balance of approximately $14 million is available from Water Fund, Unreserved Working Capital to fund the Project. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Packet Page 120 Item 10 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1.The City Council authorizes staff to transfer $250,000 from the Water Fund, Unreserved Working Capital to the Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project, Specification No. 1000044, as it is a high priority City project as shown in the attached Budget Amendment Request (Exhibit A). SECTION 2.Environmental Review. Construction of this project is exempt from the California Environmental Quality Act (CEQA) per categorical exemption 15301(b), Existing Facilities. The Community Development Department issued a Notice of Exemption on September 9, 2019 Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 121 Item 10 Department Name: Utilities Cost Center:6001 For Agenda of:October 22, 2019 Placement:Consent Estimated Time:N/A FROM: Aaron Floyd, Utilities Director Prepared By:Mychal Boerman, Deputy Director Utilities/Water Jennifer Metz, Utilities Project Manager SUBJECT:AUTHORIZE ADVERTISEMENT OF DISINFECTION BYPRODUCT REDUCTION AND WATER TREATMENT PLANT PIPE GALLERY IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000044 RECOMMENDATION 1. Approve the plans (Attachment A) and specifications (Council Reading File, Attachment B) for the Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project (Project), Specification No. 1000044; and 2. Authorize staff to advertise the Project for bids; and 3. Authorize the City Manager to award the construction contract for the Project if the lowest responsible bid is within available project funding; and 4. Approve a Resolution (Attachment C) authorizing a budget transfer of $1,042,174, from Water Fund, Unreserved Working Capital account to the Project account. DISCUSSION Background Disinfection Byproduct Reduction The City’s Water Treatment Plant (WTP) meets the community’s daily water demands using a combination of surface water sources that include Whale Rock, Salinas (Santa Margarita Lake), and Nacimiento Reservoirs. Following the initial treatment processes, chlorine is added to the water before distribution to the community to prevent any harmful microbial regrowth from occurring. Water systems that use chlorine for this type of disinfection are required by federal and state law to sample for disinfection byproducts on a regular basis at specific locations. Total Trihalomethanes (TTHMs) are a group of substances known as disinfection byproducts which form when chlorine reacts with naturally occurring organic material in water. The highest levels of TTHMs typically occur where water age is the greatest, such as in water tanks with poor mixing. United States Environmental Protection Agency (EPA) regulatory requirements for maximum TTHM contaminant levels became more stringent in 2013 due to elevated concerns that there may be associated health risks with prolonged ingestion. Following the more stringent EPA regulations, the City’s water sample results for the 2nd quarter of 2015 showed TTHMs at levels of 82.1 parts per billion (ppb) which was above the maximum contaminant level (MCL) of 80 ppb. When routine monitoring indicated that TTHM levels were above regulatory standards, the City issued a notice to customers to keep them informed about Packet Page 122 Item 10 water quality. Since that time, WTP staff has been blending water from the various surface water reservoirsto reduce naturally occurring organics andto optimize treatment performance along with making operational adjustments to reduce water age within the City’s water distribution system to minimize TTHM formation. WTP staff also pilot tested different chemicals aimed at reducing TTHM levels without success. The City’s Water Distribution staff also implemented a flushing program to help move the aging water throughout the system. Over the last few years, the City’s third quarter (late summer) TTHM readings are nearing the MCL exceedance levels. This upward trend in TTHMs is exacerbated by the warmer water temperatures in the source water supplies during summer, water conservation which results in longer contact time with chlorine, and the City’s water resiliency supply strategy that requires using minimal water from Whale Rock Reservoir, even though it is the lowest in organic material. In order to permanently address the issue of high TTHMs, mixing, aeration, and ventilation equipment is needed at two of the City’s water storage tanks. Water Treatment Plant Pipe Gallery The City’s existing WTP was constructed at its current Stenner Canyon location in 1963, with major facility upgrades in 1994 and 2009. Upon inspection in early 2019, staff identified portions of the WTP pipe gallery (installed as part of the 1994 upgrade) that exhibited severe corrosion. Specifically, a section of the 30‐inch filter effluent line that delivers treated water to the clearwell tanks where it is stored prior to entering the water distribution system. At this location, chemical treatment is required for fluoride and chlorine addition and pH adjustment. It is assumed that this chemical addition, combined with the presence of standing groundwater, contributed to the severe corrosion of the pipe. Due to the high consequence of failure of the pipeline, staff is recommending the urgent replacement of the corroded piping. Project To enable the City to maintain regulatory compliance related to disinfection byproduct levels and address the corrosion issues at the pipe gallery, staff is recommending the City Council approve the Disinfection Byproduct Reduction (DBR) and WTP Pipe Gallery Improvements Project (Project) and authorize advertisement of the project. The Project includes two components: WTP pipe gallery improvements and disinfection byproduct reduction equipment installation at the WTP (Clearwell 2) and at Edna Saddle Tank. The City completed plans and specifications (Attachments A and B) for the Project and recommends the City Council authorize advertisement of the project for construction. Combining the two components allows the City to achieve construction efficiencies to expedite project completion and minimizes the duration of construction impacts on WTP operations. Packet Page 123 Item 10 The Project includes modifications at two potable water storage tanks (Clearwell #2 at the WTP and Edna Saddle Tank) for the installation of specialty equipment (mixers, aerators, and ventilators) to effectively reduce disinfection byproducts to meet regulatory requirements. As part of the approval on March 19, 2019 (Attachment D), Council authorized the inclusion of the sole-sourced equipment in the Project’s bid documents (PAX Trihalomethane Reduction System by PSI Water Technologies, Inc.). The Project also includes replacement of corroded pipe within the pipe gallery at the WTP, installation of a new effluent line and additional valving to provide a means for improved maintenance flexibility within the pipe gallery, and the abandonment of a portion of the existing buried 30-inch pipeline. This construction will be complex as the existing WTP must continue to operate and serve the community’s water needs, allowing only short duration shutdowns to not interrupt water service. Theproject requires significant excavation work to enable the new pipeline installation, and space is limited. The Project contingency for construction, construction management, and inspection services is budgeted at 25 percent due to the complexity of the proposed pipe gallery improvements and consequence of failure. Construction management and inspection services will be provided by consultants from the City’s on-call service contracts, Capital Plan Construction Management Services, Specification No. 50410.2018CM and Water and Wastewater Engineering Services, Specification No. 91537. Policy Context The U.S. Environmental Protection Agency and the State Water Resources Control Board prescribe regulations that limit certain contaminants in water provided by public water systems, including disinfection byproducts, specifically total trihalomethanes, or TTHMs. Consistent with the General Plan, Water and Wastewater Management Element, Policy A2.2.1, the City utilizes multiple water resources to meet its water supply needs. Operationally, this means the City uses a blend of water sources to meet the community’s water needs –from Salinas, Whale Rock, and Nacimiento Reservoirs. Previous Council Action On March 19, 2019, the City Council approved the budget for the Water Treatment Plant and Water Distribution System DBR project (Attachment D). The City Manager approved an amendment to the design scope of the Project on July 8, 2019 to include improvements to the WTP pipe gallery in response to severe pipe corrosion and the high consequence of failure that could occur from a leak in this pipeline (Attachment E). The City’s 2015 Potable Water Distribution System Operations Master Plan was approved by the City Council in 2016. The Master Plan discussed the challenges in meeting Stage 2 disinfection byproducts water quality regulations associated with tank turnover and water age that this Project City of San Luis Obispo, Stenner Canyon Water Treatment Plant, Clearwell #2. Packet Page 124 Item 10 will address. The Master Plan is available on the Utilities Department’s website at https://www.slocity.org/home/showdocument?id=6439. Public Engagement The City posts its Water Quality Consumer Confidence Report (Water Quality Report) annually on the City’s webpage and mails a printed copy to all customers. Public water systems are required by state and federal law to notify users of any exceedance of any water quality standard and any other noncompliance events affecting their water system. In 2015, when a violation occurred, the City sent out a Public Notice of Violation. The City has not had a violation since the occurrence in 2015. CONCURRENCES Utilities and Public Works Department staff (City Engineer and Construction Manager) met to review delivery options for the Project. Public Works staff concurs with this request. ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) per categorical exemption 15301(b), Existing Facilities. The Community Development Department issued a Notice of Exemption on September 9, 2019 (Attachment F). FISCAL IMPACT Budgeted: No Budget Year: 2019-20 Funding Identified: Yes The DBR improvements were described in the 2019-21 Financial Plan, Capital Improvement Program, on page 397, with a total project budget of $1,850,000. The severity of the corrosion at the WTP pipe gallery was unknown at the time projects were prioritized for the Capital Improvement Program. Of the available budget for the Project, $217,924 was expended for design services (Attachments D and E), and $1,632,076 is remaining for construction, contingencies, and construction management/inspection services. Contingencies are included at 25 percent of the construction and construction management/inspection budget to address potentialchanges in scope that may arise during construction. This is a higher rate of contingency to typical pipeline replacement capital projects due to the complexity of the pipe gallery construction within the WTP. The construction cost estimate for the project is $1,842,000, including the shop drawing cost from PSI Water Technologies. Other project costs are outlined in the table below for a total project cost of $2,674,250. As described in the Resolution (Attachment C), a budget transfer of $1,042,174 is proposed from Water Fund, Unreserved Working Capital which is approximately $20 million (unaudited financials). Since sufficient unreserved working capital is available to support this project, staff does not recommend modifications to the approved 2019-21 capital project program. Packet Page 125 Item 10 Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project (Specification #1000044) Estimated Costs Construction Cost Estimate $1,817,000 Construction Management (CM)/Inspection $250,000 Specialized Coatings Inspection $20,000 Engineering Construction Phase Support $40,000 Shop Drawings $25,000 Materials Testing and Printing $5,500 Construction and CM/Inspection Contingency (25%)$516,750 Total Project Cost1 $2,674,250 Project Funding Total Funding Available $1,632,076 Funding from Water Fund, Unreserved Working Capital $1,042,174 Available Project Funding $2,674,250 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Water Fund $2,674,250 $130,000 $2,804,250 Total $2,804,250 Ongoing annual costs are estimated at $130,000 for the operation of the DBR equipment. Funding for the Project’s on-going operational costs was approved as part of the 2019-2021 Financial Plan in the WTP operating budget. ALTERNATIVES Deny or defer approval to advertise.The City Council may choose to deny or defer the approval to advertise this project. Staff does not recommend this alternative as the City is required to remain in regulatory compliance of the Disinfection Byproduct Rule. Should this be denied or deferred, the existing WTP pipe gallery pipeline will also continue to deteriorate, increasing the likelihood of failure. 1 Excludes operating costs. Packet Page 126 Item 10 City of San Luis Obispo, City Manager Report Final City Manager Approval Approver Name Date Approved ACM –Community Services Shelly 11/18/19 Reviewer Routing List Reviewer Name Date Reviewed City Attorney JCD 11/15/19 City Engineer MH 11/18/19 Finance NH (finance) November 15, 2019 FROM:Aaron Floyd, Utilities Director AAF 11/14/19 PREPARED BY:Mychal Boerman, Deputy Director –Water Jennifer Metz, Utilities Project Manager SUBJECT:Award of Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project, Specification No. 1000044 RECOMMENDATION Award a contract to Cushman ContractingCorporation.the amount of $1,990,700for the construction of the Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project, Specification No. 1000044 (Project). DISCUSSION On October 22, 2019, the City Council approved plans and specifications,authorized staff to advertise for bids, and authorized the City Manager to award the construction contract if the lowest responsible bid is within available Project funding (Attachment 1). The construction cost estimate was $1,817,000 and contingency of $516,750 was identified for a total available budget of $2,333,750. On October 30, staff held a mandatory pre-bid meeting for the Project that was attended by six contractors. Bids were opened on November 14, 2019 and Cushman Contracting Corporation was the low bidder with a proposal of $1,990,700which is lower than the total available budget of $2,333,750. It is recommended that the Project be awarded to Cushman Contracting, Inc. The Contractor’s references, license and registration with the Department of Industrial Relations have been verified. A bid summary is provided in Attachment 2. CONCURRENCES The Public Works Department concurs with the recommended action. Packet Page 127 Item 10 Award of Disinfection Byproduct Reduction and Water Treatment Plant Pipe Gallery Improvements Project, Specification No. 1000044 Page2 FISCAL IMPACT The proposed budget is shown below. After completion, the budget savings will be moved to the Water Fund’s Completed Projects account. Fiscal Impact Summary Costs By Type Item Current Proposed Change Construction Contract N/A 1,990,700$ 1,990,700$ Funding By Source Item Current Proposed Change Available Project Budget, including approved contingency 2,333,750.00$ $343,050.00 $1,990,700.00 Total 2,333,750.00$ 343,050.00$ 1,990,700.00$ ALTERNATIVES Deny award of the contract. The City Manager may choose to not award the contract and reject all bids. Staff does not recommend this alternative. Delay of improvements could result in the Water Treatment Plant being offline for unplanned repairs. ATTACHMENTS 1.Council Agenda Report, October 22, 2019 2.Bid Summary 3. Contract Agreement, Cushman Contracting Corporation Packet Page 128 Item 10 partment ities cal Officer Date Kelley Mattos partment Head Date Aaron Floyd st Center and Account Title Fund Cost Center Account Amou - st Center and Account Title Fund Cost Center Account Amou - oject Title Award Project Task Amou HM Byproduct Reduction Project 1016 1000044 2 250,000.0 250,000.0 count Title Fund Cost Center Account Amou ater Fund, Unreserved Working Capital 601 0000 32001 (250,000.0 (250,000.0 counting Date dget Manager or Finance Director Date sted By Process ID Date Period ANGE TO FUND BALANCE, WORKING CAPITAL OR DESIGNATION OJECTS AND AWARDS PENDITURES AND TRANSFERS OUT VENUES AND TRANSFERS IN RPOSE e of unreserved working capital to increase construction contingencies for the disinfection byproduce reduction and water treatment plant e gallery improvements project, specification no. 10000444. Page intentionally left blank. Packet Page 130 Item 10 Department Name: Human Resources Cost Center:3001 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Monica Irons, Director of Human Resources Prepared By:Brittani Roltgen, Human Resources Analyst SUBJECT:DEPARTMENT OF JUSTICE LIVESCAN RESOLUTIONS -CLETS RECOMMENDATION Adopt a Resolution (Attachment A) authorizing the City of San Luis Obispo (City) to access state and federal summary criminal history information for employment purposes for those positions with potential system or physical access to information from the California Law Enforcement Telecommunications System (CLETS), California Department of Justice (DOJ) “Livescan”, the Department of Motor Vehicles, and Department of Social Services. DISCUSSION In August 2019 the City Council adopted Resolution 11034 (2019 Series) which authorized specific Human Resources’staff to access federal and state summary criminal history information through the DOJ. The final stage of this process is to receive approval of the resolution through the Federal Bureau of Investigation (FBI) to receive this information. When this resolution was sent to the FBI, it was denied due to the language clarifying that the information would be used in employment including “volunteers, supplemental, and contract employees” in the resolution, because supplemental employees are not codified in the Municipal Code. Supplemental is defined in the City Council adopted Supplemental Employee Policy and replaces the use of the term “temporary employee”. Temporary appointments and temporary positions are codified in the Personnel Rules and Regulations; however, the FBI needs the resolution language to be consistent with the Municipal Code. Considering the use of the term “supplemental” was simply to further clarify a type of employment, the clarifying language is not necessary. Therefore, staff is requesting the City Council to approve the Resolution (Attachment A) provided in this staff report, which does not include that clarifying language. Previous Council or Advisory Body Action In October 2002 the City Council adopted Resolution 9371 which authorized specific Human Resources staff to access DOJ federal and state summary criminal history information directly as opposed to receiving the information through the Police Department. In August 2019 the City Council adopted Resolution 11034 (2019 Series) which authorized specific Human Resources’ staff to access federal and state summary criminal history information through the DOJ. Packet Page 131 Item 11 Policy Context California Law Enforcement Telecommunication System (CLETS) Policies, Practices, and Procedures, Section 1.9.2 Section A: “All persons, including non-criminal justice, volunteer personnel, private vendor technical or maintenance personnel with physical or logical access to the CLETS equipment, information from the CLETS or to criminal offender record information, are required to undergo, at a minimum, a background state and federal fingerprint-based criminal information search pursuant to the California Code of Regulations, Title 11, Division 1, Chapter 7, Article 1, subsections 703(d) and 707(b).” Public Engagement This item is on the agenda for the March 17, 2020 City Council meeting and will follow all required postings and notifications. The public may comment on this item at or before the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: N/A Budget Year: FY 2019/20 Funding Identified: N/A Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total Fiscal Analysis: There is no fiscal impact related to this request. The expenditure related to running LiveScan services is already included in budgeted recruiting costs. Packet Page 132 Item 11 ALTERNATIVES The Council could choose to not adopt a resolution authorizing the City to access federal and state summary criminal history information for employment of positions with access to information from the CLETS,California DOJ “Livescan”, the Department of Motor Vehicles, and Department of Social Services record information. This would put the City out of compliance with CLETS requirements. Attachments: a - A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the City to Access State and Federal Summary Criminal History b - Previous Resolution and Report Packet Page 133 Item 11 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY HUMAN RESOURCE’S STAFF TO ACCESS STATE AND FEDERAL LEVEL SUMMARY CRIMINAL HISTORY FOR EMPLOYEE BACKGROUND INFORMATION THROUGH THE DEPARTMENT OF JUSTICE WHEREAS,Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities, counties, districts, and joint powers authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and WHEREAS,Penal Code Sections 11105(b)(11) and 13300(b)(11) authorize cities, counties, districts, and joint powers authorities to access federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation; and WHEREAS,Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of record; and WHEREAS,Penal Code Sections 11105(b)(11) and 13300(b)(11) require the city council, board of supervisors, governing body of a city, county, or district or joint powers authority to specifically authorize access to summary criminal history information for employment, licensing, or certification purposes. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the City of San Luis Obispo is hereby authorized to access state and federal level summary criminal history information for employment purposes and may not disseminate the information to a private entity. Packet Page 134 Item 11 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1.Resolution Number 11034 (2019 Series) is hereby rescinded and superseded to the extent inconsistent herewith. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 135 Item 11 Attachment B Packet Page 136 Item 11 Attachment B Packet Page 137 Item 11 Attachment B Packet Page 138 Item 11 Attachment B Packet Page 139 Item 11 Attachment B Packet Page 140 Item 11 Department Name: Administration Cost Center:1001 For Agenda of:March 17, 2020 Placement:Consent Estimated Time:N/A FROM: Greg Hermann, Deputy City Manager Prepared By:Georgina Bailey, Cannabis Program Coordinator/Management Fellow SUBJECT:AUTHORIZE A PROPOSITION 64 PUBLIC HEALTH & SAFETY GRANT APPLICATION FOR NON-COMPLIANT CANNABIS DELIVERY ENFORCEMENT RECOMMENDATION Adopt a Resolution authorizing staff to prepare and submit a grant application to the Board of State and Community Corrections’ (BSCC) Proposition 64 Public Health & Safety Grant and authorizing the City Manager or designee to execute any other required grant administration related documentation (Attachment A). DISCUSSION The BSCC is accepting applications for its Proposition 64 Public Health & Safety Grant (Attachment B). This grant application is due April 3, 2020 and requires City Council approve a resolution that includes certain standard terms and acknowledgements. Staff has closely evaluated the published grant guidelines and determined this grant to be a strong match for the City’s Mobile Delivery Compliance efforts. Specifically, the City’s Cannabis Program has created a program to bring out of town delivery operators licensed in other cities/counties into compliance with the City’s cannabis regulations and enforce against illicit and unpermitted delivery operators coming into the City. Staff recommends that the City Council authorize the submittal of this grant application for acquisition of funding to go towards the mobile delivery compliance efforts of the City’s Cannabis Program. The proposed grant application would support resource costs associated with bringing cannabis mobile delivery operators into compliance and providing additional enforcement resources for illicit cannabis mobile delivery operators. The grant application, if successful, would allow the City to become one of the only cities/counties in the state to tackle issues with illicit cannabis operators head on and would follow through on City goals to support the success of authorized cannabis operators in the City. Staff has contingencies for administration of the grant if awarded in the form of a resource either built into the grant submittal or through an existing staff resource. Packet Page 141 Item 12 Policy Context The recommended action is consistent with the City’s Cannabis Program and Regulations, which demonstrate a long-term commitment to protect the health, safety, and welfare of the residents of the City from the negative impacts of illegal commercial and noncommercial cannabis activity. This commitment is reflected in the purpose and intent of the Cannabis Regulations established November 27, 2018 by the City Council. Likewise, the City’s Financial Management Manual, Section 740, requires City Council authorization to submit grant applications in excess of $5,000. In particular, section 3(d) states: For grants in excess of $5,000, prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/ benefit analysis. Staff recommends that the Council authorize the submittal of this grant application for additional resources to be added to the City’s Mobile Delivery Compliance program and find that it meets the City’s Grant Management Policy outlined in Section 740 because there is an opportunity to significantly leverage City funds on balance with only modest staff time required to prepare the grant application Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. CONCURRENCE The Police Department concurs with this application in furtherance of the City’s efforts to bring out of town delivery operators into compliance with City regulations, enforce against illicit cannabis markets delivering into the city, and support City licensed cannabis operators combat the effects of black and grey market cannabis operators. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2020-21 Funding Identified: Yes Packet Page 142 Item 12 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A N/A State Federal Fees Other: Total N/A N/A The staff time necessary to prepare and submit the grant application is supported by the City Administration operating budget,as well as through the City’s existing contract for grant writing services with the firm Adrienne Harris Consulting. If the funding is awarded, the subject grant funds would not need to be matched by the City. The staff time required to administer the grant will be accounted for in the submittal of the grant. ALTERNATIVES 1.Request more information.The City Council could request additional information or analysis. This alternative is not recommended as this request is consistent with the City’s Cannabis Program Goals to enforce the City’s Cannabis Regulations, bring eligible operators into compliance, and enforce against illicit cannabis markets in the City. Likewise, this alternative is not recommended as the timeline for the submittal of the Grant Proposal is April 3, 2020 giving staff time a narrow window to apply to the grant. 2.Do not adopt staff recommendation.The City Council could not adopt staff’s recommendation. This alternative is not recommended as this request is consistent with the City’s Cannabis Program Goals to enforce the City’s Cannabis Regulations, bring eligible operators into compliance, and enforce against illicit cannabis markets in the City. Attachments: a - Draft Resolution b - COUNCIL READING FILE - Prop 64 Public Health and Safety Grant Program RFP Packet Page 143 Item 12 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA,AUTHORIZING SUBMITTAL OF THE CITY’S CANNABIS MOBILE DELIVERY ENFORCEMENT PROPOSAL FOR THE PROPOSITION 64 PUBLIC HEALTH & SAFETY GRANT ADMINISTERED BY THE BOARD OF STATE AND COMMUNITY CORRECTIONS WHEREAS,the City of San Luis Obispo (City) desires to participate in the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC); and WHEREAS, the Proposition 64 Public Health & Safety Grant is consistent with the purpose of City’s Municipal Code Section 9.10 Cannabis Regulation, which states that is primary purpose and intent is to protect the health, safety, and welfare of the City’s residents from the negative impacts of illegal commercial and noncommercial cannabis activity; and WHEREAS, the City has not banned the cultivation or retail sale of marijuana or marijuana products and instead has created a cannabis program that worked with the community to create a thoughtful, transparent and fair process for granting permits to cannabis businesses, including retail sales, cultivation, manufacturing, distributing, testing, and delivery; and WHEREAS, the City is eligible as identified under the Medium Sized County definition of the BSSC Request for Proposals (RFP) as a City in the San Luis Obispo County; and WHEREAS,the City will be able to meet Project Purpose Areas 1 Youth Development/Youth Prevention and Intervention by designating a minimum 10% of the proposed grant budget towards this project area; and WHEREAS,the City will be able to meet Project Purpose Area 2 Public Healthbecause resources from the proposed grant would go towards activities that protect the safety and improve the health of communities through inspection and enforcement programs and research; and WHEREAS,the City will be able to meet Project Purpose Area 3 Public Safety because resources from the proposed would go to costs associated with bringing cannabis mobile delivery operators into compliance and eradicating illicit cannabis mobile delivery operators from the City; and WHEREAS,the grant meets the City’s Grant Management Policy outlined in Section 740 because there is an opportunity to significantly leverage City funds on balance with only modest staff time required to prepare the grant application. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows that: Packet Page 144 Item 12 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1.Grant Application. The City Council authorizes the City Manager or their designee to submit a Proposition 64 Public Health and Safety grant application to the BSCC. SECTION 2.Document Execution. The City Council authorizes the City Manager or their designee to conduct all negotiations, execute and submit all documents, including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion and execution of awarded funding. SECTION 3.Eligible Activities. The grant funds received hereunder shall not be used to supplant City expenditures and the City agrees to abide by the terms and conditions of the Grant Agreement as set forth by the BSCC. SECTION 4.Environmental Determination. The City Council has determined that the above actions do not constitute a “Project,”as defined by the California Environmental Quality Act Guidelines 15378. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington, City Clerk Packet Page 145 Item 12 Page intentionally left blank. Packet Page 146 Item 12 Department Name: City Administration Cost Center:1001 For Agenda of:March 17, 2020 Placement:Business Estimated Time:20 Minutes FROM: Derek Johnson, City Manager Prepared By:Ryan Betz, Assistant to the City Manager SUBJECT:RESOLUTION APPROVING AND AUTHORIZING THE MAYOR OR DESIGNEE TO SIGN THE SAN LUIS OBISPO COUNTYWIDE REGIONAL COMPACT RECOMMENDATION Adopt a Resolution approving and authorizing the Mayor or designee to sign the San Luis Obispo Countywide Regional Compact: Regional Infrastructure & Affordable Housing Strategic Action Plan (Attachment A). DISCUSSION Background The San Luis Obispo County region is currently one of the least affordable places to buy a home in the United States –recently reported as the 8th least affordable region in the Nation. According to the National Association of Home Builders, only 20.9 percent of the area’s share of homes are affordable to a family earning the area’s median income.1 As stated in the County’s Housing Element of the General Plan (2014-2019), the chronic undersupply of housing affordable and suitable for locally employed people has economic, social, and environmental impacts. Providing an adequate supply and range of housing choices affordable to residents and working families/individuals is a significant challenge in San Luis Obispo County region, and requires the efforts of public agencies, private industries, residents, and working individuals to overcome it. Pursuant to State law, the State Department of Housing and Community Development (HCD) determines the region’s future housing needs by affordability level and directs the San Luis Obispo Council of Governments (SLOCOG) to assign the required housing units to each of the seven Cities and the County’s unincorporated areas. This is known as the Regional Housing Needs Allocation (RHNA) process. In December 2018, the SLOCOG Board accepted the State HCD’s final determination that the San Luis Obispo County region must plan for 10,810 new housing units by 2028. Subsequently, in October 2019, the SLOCOG Board adopted the 2019 RHNA Plan, allocating the 10,810 new housing units across the eight local land use planning agencies, generally based on each jurisdiction’s proportional share of the region’s population and 1 2019 Third Quarter Housing Opportunities Index. Packet Page 147 Item 13 jobs.2 Each of the seven cities and County are now required to identify adequate sites and plan for its future housing needs as it updates its Housing Element by December 31, 2020. Meeting the current and future RHNA cycles will require our communities to plan for additional growth and prioritize investment in housing and infrastructure. The Governor and State Legislature have enacted numerous bills that encourage local agencies to take actions to streamline housing approvals and accelerate housing production.3 The Governor and numerous legislators have expressed a need for urgent focus on California’s housing affordability crisis. Their decisions continue to prioritize the need for actions to address this complex challenge, such as through their adoption of the FY 2019-20 State Budget that included $1.75 billion investment to increase housing supply and hold local agencies accountable for meeting regional housing goals. Meeting the housing needs of the San Luis Obispo County region is a challenge shared by all eight local land use jurisdictions and SLOCOG and will take collective actions to overcome. With this great challenge also comes an opportunity for regional collaboration. The proposed San Luis Obispo Countywide Regional Compact (Exhibit A to Attachment A) is an aspirational document. It sets the tone and goals for future recommended plans and actions among the local agencies. It establishes a united regional framework to unlock the potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity. It recognizes that people, water, transportation, connectivity, and housing form the foundation of the San Luis Obispo County region’s healthy, livable communities and thriving economic opportunity. The region’s local agencies, building and development community, residents and workforce have an opportunity to unite around six shared regional goals that provide a vision to guide collaborative resolution of the underlying issues. Goal 1. Strengthen Community Quality of Life –We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways. Goal 2. Share Regional Prosperity –We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests. 2 On October 2, 2019, the SLOCOG Board adopted the 2019 RHNA Plan, allocating the overall 10,810 units to each jurisdiction as follows: Arroyo Grande –692 units; Atascadero –843 units; Grover Beach –369 units; Morro Bay – 391 units; Paso Robles –1,446 units; Pismo Beach –459 units; San Luis Obispo - 3,354 units; and unincorporated areas –3,256 units. 3 While numerous other bills and actions were enacted, several key examples include: SB 330 Housing Crisis Act of 2019 aimed at accelerating housing production through various actions such as streamlining permitting and approval processes; Various bills aimed at eliminating barriers to building accessory dwelling units; AB 1486 and AB 1255 related to inventorying and reporting surplus and excess local public lands; AB 72 modifying enforcement actions against agencies that do not comply with RHNA. Packet Page 148 Item 13 Goal 3. Create Balanced Communities –We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community. Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected. Goal 5. Support Equitable Opportunities –We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels. Goal 6. Foster Accelerated Housing Production –We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact. The Regional Compact is recommended for approval by the governing boards of all eight local agencies and SLOCOG. Signatories to the Regional Compact commit to acting as partners in aligning actions with these regional goals. The Regional Compact is an important first step that will help to protect and enhance the region’s communities, build critical infrastructure, protect natural resources and create a forward-thinking future for the region. By taking collaborative actions to further these goals, our region can solve critical issues and become a statewide leader in sustaining vibrant communities. Additionally, given the State’s pro-housing focus, the Regional Compact shows the San Luis Obispo County region’s intent to work collaboratively to plan for our region’s future and its growth. This may make the region more competitive for housing and infrastructure funding opportunities. The City is committed to working with the County, the seven local Cities, SLOCOG and key stakeholders to supporting regional collaboration and development of a plan for action among the region’s local agencies.The County has taken a lead role in fostering collaboration among the stakeholders including the allocation of resources to developing the Regional Infrastructure and Affordable Housing Strategic Action Plan with stakeholders and include interagency coordination and development of the region’s first “regional chapter” common to all eight local agencies’ Housing Elements. County staff will continue to work closely with each agency’s staff and other key stakeholders as it moves both regional planning efforts forward. Packet Page 149 Item 13 Other Agency Involvement/Impact Overcoming the challenges highlighted in this staff report will require a significant focus on increasing regional collaboration related to affordable housing and the critical infrastructure to support it. The following are anticipated dates for all nine local and regional agencies to approve the Regional Compact, and pending approval by all, will culminate in a public signing event (tentatively set for April 3rd). Proposed Regional Compact Signatories Anticipated Date of Regional Compact Approval County of San Luis Obispo February 25, 2020 City of Grover Beach March 2, 2020 City of Paso Robles March 3, 2020 City of Pismo Beach March 3, 2020 City of Arroyo Grande March 10, 2020 City of Atascadero March 10, 2020 City of San Luis Obispo March 17, 2020 City of Morro Bay March 24, 2020 San Luis Obispo Council of Governments April 1, 2020 Policy Context The City’s General Plan includes policies and programs that support regional collaboration. Goal 1 of the Land Use Element discusses not only the City’s growth management policies but encourages regional planning and growth management and the preservation of open space throughout the region (see Attachment B). The Circulation Element identifies ways in which the City is to coordinate with county agencies on establishing county-wide trip reduction goals (Program 2.2.1) and encourage transit throughout San Luis Obispo County to serve a broad range of local and regional transportation needs (Policy 3.1.1). This includes the provision of housing close to job centers. As mentioned in the staff report, the City shares the burden of meeting the State’s RHNA with local cities and the County. The Housing Element is currently being updated to include a new chapter that will outline regional housing goals and policies. Regional collaboration also extends into water management. The Water and Wastewater Element contains several policies and programs regarding the management, operation, maintenance, and water quality of water resources within the region (Programs A 2.3.2, A 2.3.5, A 4.3.1). Program A 6.3.1 states, “Work cooperatively with other San Luis Obispo County water agencies to identify cooperative water efficiency measures that can be implemented in each jurisdiction.” Packet Page 150 Item 13 The following table is one of the most compelling arguments for placing housing and jobs in San Luis Obispo as it helps reduce Vehicle Miles Travelled (VMT) and overall GHG emissions. Public Engagement The City remains committed to engaging with partners including the County, seven local Cities, SLOCOG, and key stakeholders to develop the Regional Infrastructure and Affordable Housing Strategic Action Plan and formulate recommendations for how to collaboratively carry out the goals set forth in the Regional Compact. The public may submit comments prior to and during the City Council meeting regarding this item. CONCURRENCE The Community Development Department concurs with the San Luis Obispo Countywide Regional Compact: Regional Infrastructure & Affordable Housing Strategic Action Plan. Packet Page 151 Item 13 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-20 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total N/A Approval of the recommended resolution and Regional Compact will provide an aspirational vision for local Cities, SLOCOG and the County to develop various planning documents, strategies, and actions, aimed at increasing the affordability and production of housing. Therefore, approving the resolution and recommendations will contribute towards a more healthy, livable, prosperous and well-governed region. Longer term, the City will need to align revenue with services as residential properties under the Master Tax Exchange Agreement do not typically produce enough to cover capital and service costs. ALTERNATIVES Council could choose to not adopt a resolution approving and authorizing the Mayor or designee to sign the San Luis Obispo Countywide Regional Compact: Regional Infrastructure & Affordable Housing Strategic Action Plan. This is not recommended due to the many ways in which this project helps fulfill the Major City Goal of Housing. Attachments: a - Resolution b - LUE policies and programs supporting regional collaboration Packet Page 152 Item 13 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ENDORSING AND AUTHORIZING THE MAYOR OR DESIGNEE TO SIGN THE SAN LUIS OBISPO COUNTYWIDE REGIONAL COMPACT WHEREAS,the San Luis Obispo County region is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies, community organizations, and residents to solve significant regional issues: and WHEREAS,California Government Code Section 65584 requires the San Luis Obispo County region’s local land use agencies to plan for their Regional Housing Needs Allocation (RHNA); and WHEREAS, the San Luis Obispo region’s RHNA identifies 10,820 new housing units, of which 3,354 units are allocated to the City of San Luis Obispo,by 2028 and future allocations as determined by the California Department of Housing and Community Development; and WHEREAS,the San Luis Obispo Countywide Regional Compact, attached hereto as Exhibit A and incorporated herein by this reference and prepared by leaders from each of the region’s local agencies, creates a united regional framework to unlock the potential to develop an adequate supply of housing and resilient infrastructure that support economic prosperity; and WHEREAS,the regional goals set forth therein will help to protect and enhance our communities, build critical infrastructure, protect natural resources, and create a forward-thinking future for local communities in addition to underpinning the future Regional Infrastructure and Affordable Housing Strategic Action Plan, creating compatibility among the eight local land use agencies’ Housing Elements, and driving future recommendations for collaborative actions. Packet Page 153 Item 13 Resolution No. _____ (2020 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED by the Council of theCity of San Luis Obispo as follows: SECTION 1.Endorse the San Luis Obispo Countywide Regional Compact and authorizes the Mayor or designee to sign said Compact. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 154 Item 13 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A Packet Page 155 Item 13 Land Use Element Policies and Programs Supporting Regional Collaboration Policy 1.6: Regional Planning. The City shall encourage regional planning and growth management throughout the county, and in cooperation with neighboring counties and the State. Policy 1.13.12: Regional Growth Management. The City shall advocate a regional growth- management program, which should include: A. Population growth no faster than the statewide average growth rate for the preceding year, and no faster than can be sustained by available resources and services, whichever is less. B. No significant deterioration in air quality, due to development activities for which local government has approval. C. Plans for large residential developments to include a range of housing types to provide opportunities for residents with very low, low, or moderate incomes. D. Voter approval for any significant change from Open Space, Agriculture, or Residential Rural designations to another designation. Program 1.14.2: Regular Coordination Meetings. The City shall advocate and help arrange quarterly coordination meetings among planning directors of local jurisdictions in San Luis Obispo County, SLOCOG, LAFCO, Cal Poly, and APCD to discuss regional issues. Policy 9.1: Sustainability. The City shall take a leadership role in the county in the development of sustainable plans and programs to guide future development in the city and the region. Packet Page 156 Item 13 Department Name: Finance Cost Center: 2001 For Agenda of: March 17, 2020 Placement:Business Estimated Time:20 minutes FROM: Brigitte Elke, Finance Director Prepared By:Debbie Malicoat, Accounting Manager/Controller SUBJECT:ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT, SINGLE AUDIT REPORT, AND ANNUAL AUDIT OF TRANSPORTATION DEVELOPMENT ACT FUNDS FOR 2018-19 RECOMMENDATION Review and accept the Comprehensive Annual Financial Report for Fiscal Year 2018-19. (Attachment A) DISCUSSION The accompanying Comprehensive Annual Financial Report (CAFR) has been prepared as required by the City of San Luis Obispo’s (City) Charter and applicable State laws regarding financial reporting for municipalities. The CAFR provides an audited representation of the City’s financial condition across all funds for the fiscal year that ended June 30, 2019. The CAFR was published on the City’s website on March 10, 2020 and distributed to the City Council through the Council Agenda for the March 17, 2020, public meeting. In accordance with the City Charter1, the City’s financial statements have been audited by independent certified public accountants from Badawi & Associates. The objective of the financial audit is to provide users of the financial reports with reasonable assurance from an independent source that the financial reports are reliable and represent a fair assessment of the City’s financial condition. The independent auditor concluded that the City’s financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2019, the respective changes in financial position, and, where applicable, cash flows therefore for the year then ended in accordance with accounting principles generally accepted in the 1 Section 810. Independent Audits. The Council shall employ, at the beginning of each fiscal year, an independent certified public accountant who, at such time or times as may be specified by the Council, at least annually, shall examine the books, records, inventories, and reports of all officials, employees, departments, and agencies who receive, handle, or disburse public funds. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the Council, one copy thereof to be distributed to each member, one each to the City Clerk, the City Treasurer, the City Manager, and City Attorney respectively, and three (3) additional copies to be placed on file in the office of the City Clerk where they shall be available for inspection by the general public for the period required by the laws of the State of California. Restricted and special assessment district funds shall be segregated in the audit report. Packet Page 157 Item 14 United States of America. The independent auditors’ report is presented as the first component of the financial section of the CAFR. Historically, the City’s audited financial statements have been completed within 180 days of the end of the fiscal year and posted by December 31st. During FY2018-19, the City implemented a new Enterprise Resource Planning (ERP) system, which included accounting and financial reporting functions as well as the implementation of a Human Capital Management module including payroll. The implementation was complex and encountered substantial issues, which delayed staff’s ability to close the year and ensure all transactions were posted and reflected appropriately. The issues encountered during 2018-19 are not expected to recur and staff does not anticipate delayed financial statements in the future. New Government Accounting Standard Board (GASB) Statements Though the GASB issues new statements annually, there are two recent GASB statements that influence government financial statements. Pursuant to GASB Statement No. 68 (GASB 68 implemented in June 2015), Accounting and Financial Reporting for Pensions and GASB Statement No. 75 (GASB 75 implemented in June 2018), Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB), the City reports on the unfunded pension and OPEB liabilities on the full accrual basis of accounting in the government-wide financial statements. Also included are note disclosures and supplementary schedules as required by GASB 68 and GASB 75. The measurement date for fiscal year 2018-19 pension and OPEB liabilities is as of the fiscal year ended June 30, 2018. This date reflects a one-year lag and was used so that the financial statements could be issued in an expedient manner. Activity (i.e. contributions made by the City) occurring during fiscal year 2018-19 are reported as deferred outflows of resources in accordance with GASB Statement No. 71. For FY 2018-19, four new standards went into effect and the City’s audit was conducted in full compliance with those standards listed below: GASB 83 Certain Asset Retirement Obligations GASB 84 Fiduciary Activities GASB 88 Certain Disclosures related to Debt incl. direct borrowings and direct placements GASB 90 Majority Equity Interest After discussions with the independent auditors, the financial statements for FY2018-19 include a prior period adjustment related to recognizing the pension and OPEB liabilities connected to the Whale Rock Fund. The key issue in determining whether these items are liabilities of the City or of the Whale Rock Commission centers around the contractual obligations of the Whale Rock Commission partners and the actuarially determined liability. Fundamentally, the Whale Rock reservoir is operated and maintained by employees of the City assigned to this function. These employees participate in the City’s CalPERS retirement program and are included in the actuarial valuation of the pension liability for all City employees. The Whale Rock Commission does not have its own contract with CalPERS, nor do the other two partners in the commission, California Polytechnic State University (Cal Poly)and the California Men’s Colony, directly pay into the City’s plan. As the Whale Rock Commission was formed in 1959 based on agreements between the partners, no other structure such as a JPA was formed that could hire the employees directly and be Packet Page 158 Item 14 a contributing CalPERS agency. The City has previously assigned pension costs and share of unfunded liability based on a reasonable allocation methodology; however, this methodology does not meet the requirements under GASB Statement Nos. 68 and 75 for recording these liabilities in the Whale Rock Fund. The financials were therefore restated, and the liability is now reflected in the City’s Water Fund.Staff intends on addressing this issue with the Commission and amend the agreement to reflect the liability for the two outside member agencies. Financial Results Highlighted in the CAFR Within the CAFR, the Transmittal Memorandum and Management’s Discussion and Analysis (MD&A) summarize the City’s fiscal performance and provide an analysis of the influencing factors. They also provide information on the City’s fiscal policies, practices and financial results. Key variances from projected ending balances for 2018-19 are highlighted in the Transmittal Memorandum. Both documents allow the reader to gain insight into the City’s audited financials and provide context to the following statements. Financial results for fiscal year 2018-19 compare favorably with budget estimates in virtually all areas of the City’s operations. For the General Fund, financial results for the year exceed final estimates for revenues by $4 million or 5.6%. This is largely due to substantial increases in Development Review related fees as private development activity remained high through 2018- 19. However, the City’s top three key revenue sources, Sales Tax including the City’s Half-Cent Sales Tax Measure, Property Tax, and Transient Occupancy Tax (TOT), all fared well in 2018- 19 ending the fiscal year at above budgeted estimates. These revenue sources account for 50% of all funding sources in the General Fund and are closely monitored through the year. Expenditures and other uses ended slightly above budget amounts by $343,000. The net result of the overall difference leads to the ending fund balance of 30.1 million. This compares to an ending balance of $ 29.6 million in 2017-18. As the chart below outlines, the majority of the ending balance is restricted or assigned and not available for spending in conformance with GASB 54. General Fund 2018-19 Final Budget 2018-19 Actual Positive (Negative) Variance Revenues 71,332,510$ 74,524,795$ 3,192,285$ Expenditures 74,031,470 72,462,957 1,568,513 Other sources (uses) (2,319,511) (1,542,736) 776,775 Beginning fund balance 29,576,440 29,576,440 - Ending fund balance 24,557,969$ 30,095,542$ 5,537,573$ Ending fund balance Nonspendable 51,636 51,636 Restricted - - Committed - - Assigned 23,858,332 23,858,332 Unassigned 6,185,574 6,185,574 Total ending fund balance 24,557,969$ 30,095,542$ 5,537,573$ BUDGET - ACTUAL COMPARISON Packet Page 159 Item 14 Included in the assigned fund balance are committed expenditures (encumbrances), balances related to the City’s Local Revenue Measures, as well as the required 20% operating reserve, the Revenue Stabilization reserve, and $1.4 million for the Section 115 Pension Trust Fund. Previous Council action prioritized any unassigned fund balance above reserve levels to be used to pay down the City’s unfunded pension liability. This agenda item is followed by a report that outlines the recommended payment as well as the use of remaining funds to one-time expenditures in Fiscal Year 2019-20 and 2020-21. Enterprise Funds The City maintains four Enterprise Funds for its Water and Sewer utility, and the Parking and Transit enterprises. Enterprise Funds are business-type activities within government accounting and are reported on separately. The primary sources of revenue for the Water, Sewer, and Parking Funds are fees for sales and services. All funds saw an increase in revenue in 2018-19 which was largely due to substantial increases in impact fees due to high development activities, as well as interest on investment revenues. The Transit fund increased its income from ridership by 13%, continuing a positive upward trend in bus use. The Transit Fund receives revenue from fare collection but is mainly funded through federal and state grants to offset its operating cost for the City’s transit system. Therefore, the City’s single audit is mainly reporting on Transit as the largest source of Federal grant funding. All four funds ended the fiscal year 2018-19 positively with all of them experiencing an increase in net position at year end. (CAFR page 33). CAFR Organization In accordance with generally accepted accounting principles for state and local governments, the City’s CAFR is organized into three major sections: Introduction, Financial Reports and Statistical Tables. The following is a brief summary of the contents of each of these sections. Introduction. The Transmittal Memorandum and other information of general interest are presented in this section, including directory of officials, advisory bodies, and organization chart. Financial Reports. This section includes the City’s primary financial statements in five major parts: 1.Auditors’ opinion regarding the financial statements. 2.Management’s Discussion and Analysis (MD&A) providing a narrative overview of City-wide finances. 3. The basic financial statements presenting the government-wide results combining the activities of the major funds (General, Capital Outlay and all Enterprise Funds) into governmental and business-type categories; the fund financial statements; and the notes to the financial statements. 4. Required supplementary information presenting the General Fund actual results with both the original and final adjusted budgets. 5. Other supplemental schedules and financial statements providing financial information for each of the City’s non-major governmental and agency funds. This includes a financial schedule presenting Half Percent Sales Tax Measure revenues and uses in 2018-19. Packet Page 160 Item 14 Statistical Tables. This section provides demographic and financial tables showing current and historical trend information for the City and is organized into six major parts: 1.Statistical overview.General information about the San Luis Obispo community. 2.General financial trends.Ten-year summary information on net assets, governmental revenues and expenditures and fund balances. 3.Revenue capacity.Ten-year summary information on property and sales tax trends. 4.Debt capacity.Ten-year summary information on debt service requirements. 5.Economic and demographic trends.Ten-year summaries of taxable sales, building permits and valuations, housing, population and other demographic trends. 6.Operating information.Ten-year trend information on operating indicators by function. Recognition for Excellence in Financial Reporting Beginning in fiscal year 1983-84, all of the City’s CAFRs have been awarded the certificate of achievement for excellence in financial reporting from the Government Finance Officers Association of the United States and Canada (GFOA). This is a prestigious national award recognizing the City’s use of the highest standards in preparing its annual financial report.The City received the award for its 2017-18 CAFR and has submitted the award application for the 2018-19 CAFR. Additional Reporting The Federal Single Audit Act requires agencies expending $500,000 or more of Federal assistance funding to undergo organization-wide audits of their internal controls. Accordingly, the Single Audit Report provides a Report on Internal Control Over Financial Reporting and on Compliance and Other Matters. In the findings section of this report, the auditors notes possible deficiencies or suggests improvements. In response to the finding, staff will respond with improvements and changes to address the findings. The Transportation Development Act annual audit is also by the same independent certified public accounting firm and provides information on the City’s compliance with statutes, rules, and regulations of the Transportation Development Act (TDA), the California Code of Regulations, and instructions and resolutions of the San Luis Obispo Council of Government for the period ending on June 30, 2019. Both report and accompanying findings will be submitted to the City Council via Council Correspondence prior to the Council meeting. The independent auditor will also present the findings during the public meeting on March 17, 2020. Policy Context The City’s Charter under Section 810 requires the employment of an independent certified public account to examine the City’s financials. Public Engagement The City’s annual audit and issuance of the comprehensive annual financial report fulfills a legal requirement and does not have a public engagement component. It will be presented to the City Council in open session on March 17, 2020, and the public can comment prior to or during the Packet Page 161 Item 14 meeting. The report will be made available on the City’s website and in the Council Reading File as part of this report. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2018-19 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $75,000 $59,890 $15,110 State Federal Fees Other: Total The City budgets the cost for the auditing firm annually. The cost is appropriated with the annual budget approval. The current fiscal year contains the budget for the previous fiscal year audit. $75,000 were approved to cover the cost. With the change in auditors, the actual cost was reduced to $59,890 for this fiscal year. ALTERNATIVES The City Council could decide to revise or not accept the Comprehensive Annual Financial Report, Single Audit Report, and annual audit of the Transportation Development Act Funds for fiscal year 2018-19. This is not recommended as the reports have been prepared in conformance with a variety of accounting and other reporting requirements and represent the professional evaluation and analysis by the City’s independent auditors. They have rendered clean opinion which means that they are presented fairly and in conformity with generally accepted accounting principles. Attachments: a - Council Reading File - City of San Luis Obispo CAFR 2019 - 20200310-1125-Draft Packet Page 162 Item 14 Department Name: Finance Cost Center:2001 For Agenda of:March 17, 2020 Placement:Business Estimated Time:30 min FROM: Derek Johnson, City Manager Brigitte Elke, Finance Director Prepared By:Natalie Harnett, Principal Budget Analyst Matt Horn, City Engineer SUBJECT:A RESOLUTION AUTHORIZING THE USE OF FY2018-19 UNDESGINATED FUND BALANCE FOR ONE-TIME BUDGET ALLOCATIONS AND A RESOLUTION FORMALLY ADOPTING THE FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT PROCEDURES. RECOMMENDATION 1. Approve Resolution (Attachment A) adopting changes to the FY2019-20 budget which includes 2019-20 budget adjustments for all Funds, authorizes the one-time payment of $4.2 million toward unfunded CalPERS liabilities, $1.4 million to fund a pension trust fund, and restricts $885,270 in fund balance for the FY2020-21 budget, and; 2. Approve one full-time equivalent (FTE) position in support of the reorganization of Community Service departments; and 3. Review recommended changes to the Capital Improvement Plan. 4. Approve a resolution (Attachment C) formally adopting the federal emergency and federal grant procurement procedures in place since February 1, 2019. DISCUSSION On March 17, 2020, the City Council will receive a presentation from its independent auditor regarding the City of San Luis Obispo’s (City) fiscal year (FY) 2018-19 results and reviewed the Comprehensive Annual Financial Report (CAFR) for the same year. Part of this review are the City’s policy reserve levels and any balance above those levels. According to the CAFR, the City ended the last fiscal year with the following fund balance: Packet Page 163 Item 15 Nonspendable 51,636$ Assigned to: Contingency fund (20% Minimum reserve) 13,418,400 General Government 9,908,932 Development services 531,000 Unassigned 6,185,574 Total fund balance 30,095,542$ General Fund - Fund Balance June 30, 2019 The chart illustrates that the City is able to fully fund its 20% operating reserve including the Revenue Stabilization Reserve and the restricted funding for the Section 115 Pension Trust Fund. After accounting for ongoing contractual obligations and the Development Review designation, $6,185,574 remain in unassigned fund balance. However, the City Council has previously directed that available funding will be prioritized to pay-down the City’s pension liability and $4.2 million are earmarked for this purpose. This leaves $1,985,574 for possible appropriation. In accordance with City Charter1, the City Council may amend or supplement the budget at any time after its adoption by the majority vote of the Council members. Additionally, the City’s budget policies allow for excess fund balance above policy reserve levels to be used for one- time, non-recurring expenditures. Accordingly, staff recommends the appropriation of one-time savings above required reserve levels from FY 2018-19 to be allocated to one-time expenditures that were unanticipated at the adoption of the 2019-21 Financial Plan but needed for optimum work program deliverables. Detailed descriptions of the requests are provided in Attachment A (Exhibits A-F). Approval of Positions As part of the 2019-21 Financial Plan Operating Program Enhancements, $225,000 was approved as an ongoing resource to support the Organization of the Future. The reorganization included the creation of an Assistant City Manager Position to manage the Community Services departments (Public Works, Parks & Recreation, Utilities, Transit, and Parking). While the funding was added to the budget for the Assistant City Manager, the FTE was not added. Due to the vacancies in the positions of first the Parks & Recreation Director and subsequently the Public Works Director, the position count was not needed. However, the City has concluded that a Public Works Director is needed and is now trying to fill the position. In order to continue the implemented structure, the approval of an additional FTE is necessary. There is no funding associated with this recommendation as all needed budget allocations were approved with the 2019-21 Financial Plan. 1 Section 804. Adoption of the Budget After the conclusion of the public hearing the Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and thereafter it shall adopt the budget with revisions, if any. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the various departments or activities therein described. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by a majority vote of the Council. Packet Page 164 Item 15 2019-20 Capital Improvement Plan –Recommended changes in appropriation On February 18, 2020, Council received its 2019-20 Mid-Year Budget Review report. The purpose of that report was to update City Council and the community on City work programs, workload and performance measures, and changes in financial positions. An update on the status of the Capital Improvement Plan (CIP) was also provided. Significant progress on CIP has been made for the City’s Utilities Department as well as the 2019 Paving and multiple bridge replacements including El Capitan Pedestrian Bridge and Meadow Park Pedestrian Bridges. A list of completed Capital Projects is included in Attachment B. The City’s Capital budget is prepared over a multi-year period and focuses on maintenance of existing facilities as well as new projects to advance Major City Goals and adopted Plans. Some CIP projects come up quickly as they may have to address failing/failed infrastructure (e.g. El Capitan Bridge) or when new information is obtained, and projects must be accelerated (e.g. safety project due to failing equipment) or deferred to fund other priority projects. The adopted CIP serves as a portfolio of projects for a budgetary cycle. Each individual project prior to construction must go through further Council and/or City Manager (depending upon fiscal impacts) review. This typically involves Council issuing requests to authorize a project for bidding and awarding contracts for construction. During that process further budget and project specification adjustments occur. Unprecedented Escalation in Construction Costs Currently, the construction industry is facing unprecedented uncertainty in costs, labor supply, and conditions.Multiple City projects have come in well above engineers’ estimates and have had to be rebid and/or returned to Council for further funding allocations. The costs of materials are escalating far more rapidly than forecasted cost adjustment indices. Construction labor shortages are unprecedented, and some projects have received no bids. Global uncertainty in the finance markets and the world in general due to stock volatility have created further instability in this industry. The impacts of this instability are that some reprioritization of projects must occur so that the City can have successful capital projects through the end of this two-year Financial Plan and stay within our budget. This results in shortfalls in other project areas and given limited funds deferral to the next cycle. Cost of Construction Escalation and Adjusted Capital Budget Staff is currently completing a comprehensive review of all general fund CIP projects within the context of the uncertainties and volatility noted above. At this time, because the City has experienced over-realized revenues, unprecedented construction costs, and project timing constraints, there are projects that are being considered for reprioritization, deferral, and funding augmentation. The results and recommendations of this analysis will be presented to the Revenue Enhancement Oversight Committee (REOC) on March 18, 2020 and forwarded to Council for consideration on April 7, 2020 as part of the consent calendar. The purpose for including this discussion is to provide the Council with a comprehensive perspective of City finances and the relationship to the CIP. Packet Page 165 Item 15 Fiscal Year 2019-20 and 2020-21 Budget Changes Based on the availability of fund balance above policy reserve levels from FY 18-19, staff recommends allocating one-time resources to expenditure budgets that will span over the remainder of the Financial Plan. Staff recommends allocating the funds for both years because many of the requests are for multi-year staffing contracts or needs and the City’s fiscal health response plan will place further strains on FY2020-21. Staff recommends that Council adopt the following budget amendments needed for this fiscal year and restrict $885,270 of fund balance for appropriation with the FY2020-21 budget. Staff expects few, if any, additional significant operating budget changes to be presented with the supplemental budget as forecasts are highly volatile, particularly within the unknown impacts on consumer spending related to COVID-19. A summary of the requests for funding from fund balance above policy reserve levels for all major funds is provided below: Fund Adopt as budget amendments to Fiscal Year 2019-20 Budget Restrict fund balance for incorporation in the 2020-21 Budget Appropriation Total2 General Fund $1,100,304 $885,270 $1,985,574 Water Fund $238,775 $37,351 $276,126 Sewer Fund $13,775 $37,351 $51,126 Parking Fund $106,175 $16,742 $122,917 Transit Fund $2,375 $6,440 $8,815 Public Art Fund $400,000 (Capital)$400,000 Policy Context The City’s Charter under Section 804 allows City Council to amend or supplement the budget by motion adopted by majority vote of the council. Formal Adoption of Federal Procedures At the beginning of 2019, in relation to the City’s Water Resource Recovery Facility project, changes were drafted for City procurement standards in order to be compliant with federal standards when federal funds are procured. The resolution proposed (Attachment C) outlines the standards required for compliance. The City implemented the changes as of February 1, 2019 and approving the resolution will formally adopt the standards that have been followed since that time. Public Engagement This report is published in advance of the public Council meetings and it will be heard at the Council meeting as a business item. The public will have an opportunity to comment prior and during the hearing on this item. 2 Attachment A provides details of the proposed budget adjustments. Packet Page 166 Item 15 CONCURRENCE The City’s Financial Plan Steering Committee concurs with the recommendations included in this report. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 Funding Identified: Yes Fiscal Analysis: The requests as detailed below will be funded from unassigned fund balance above policy reserve levels for the General Fund and four Enterprise Funds. TABLE 1 –General Fund (Attachment A-Exhibit A) Requests for Appropriation of FY 2018-19 One-Time Savings FY 19-20 FY20-21 1 Youth Services Staffing Crisis $17,000 $68,000 2 Police –Public Events/ Marches $100,000 $150,000 3 CDD Tech Support for All-Electric Building Contractors $50,000 4 Contract Legal Analyst/Office Manager $25,000 $102,000 5 Trash and Recycling Staff (Contract)$40,000 6 2020 Election Costs $67,752 7 MOTION Project Funding $58,900 $159,706 8 Communications & Engagement Manager (1.5 Year Contract)$94,191 $144,854 9 Additional Legal Support $187,194 $102,957 10 Property Tax Allocation Splitting Model $25,000 11 Capital Reserve Replenishment for Security Improvements $380,000 12 Additional Funding to Capital Reserve3 $213,020 TOTAL $1,100,304 $885,270 TABLE 2 –Water Fund (Attachment A-Exhibit B) Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Springbrook Software Version Update $25,000 2 Water Rights Attorney $200,000 3 MOTION Project Funding $13,775 $37,351 TOTAL $238,775 $37,351 3 The 2019-20 Budget has $500,000 allocated to Capital Reserve, assuming available fund balance at FY 19-20 Year End. This request will bring the allocation up to $713,020. Packet Page 167 Item 15 TABLE 3 - Sewer Fund (Attachment A-Exhibit C) Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 MOTION Project Funding $13,775 $37,351 TOTAL $13,775 $37,351 TABLE 4 –Parking Fund (Attachment A-Exhibit D) Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Parking and Access Management Plan Update $100,000 2 MOTION Project Funding $6,175 $16,742 TOTAL $106,175 $16,742 TABLE 5 –Transit Fund (Attachment A-Exhibit E) Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 MOTION Project Funding $2,375 $6,440 TOTAL $2,375 $6,440 TABLE 6 –Public Art Fund (Attachment A-Exhibit F) Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Public Art Allocation to Enhance Garden Alley $200,000 2 Public Art Allocation to Anholm Greenway $200,000 TOTAL $400,000 ALTERNATIVES 1. Do not approve of the one-time budget allocations. This alternative because these one-time allocations are mission critical to helping the City achieve its goals and are afforded through unassigned fund balance above policy reserve levels. The allocations for FY2020-21 will assist with critical work programs without further stress on the budget due to the City’s Fiscal Health Response Plan. 2. Modify the proposed one-time allocations and associated budget adjustments. Attachments: a - Resolution One Time Budget Amendments b - Completed Capital Projects c - Resolution - Fed Emergency and Grant Procurement Procedures Packet Page 168 Item 15 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO THE 2019-20 BUDGET ALLOCATION FOR THE GENERAL, WATER, SEWER, PARKING, TRANSIT AND PUBLIC ART FUNDS WHEREAS,in accordance with the San Luis Obispo City Charter Section 802, the City Manager submitted the 2019-21 Financial Plan to City Council for its review and consideration on June 4, 2019; and WHEREAS,the City Council approved the 2019- 21 Financial Plan and appropriated the 2019-20 budget including operating expenditures, debt service, and capital improvement plan budget; and WHEREAS,in accordance with the San Luis Obispo City Charter Section 804, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by a majority vote of the City Council; and WHEREAS,audited financials show $6.1 million in unassigned general fund balance above required reserve levels from fiscal year 2018-19; and WHEREAS,the current required reserve levels include a 20% operating reserve, $1 million revenue stabilization reserve, and $1.4 million in restricted funding for the Section 115 Pension Trust Fund; and WHEREAS,as outlined in the 2019-21 Financial Plan, $4.2 million is recommended to fund an additional down payment to CalPERS against the oldest outstanding pension liability balances; and WHEREAS,the City Manager is recommending the approval of budget appropriations from the remaining unassigned fund balance for one-time funding as summarized in Exhibits A- F. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1.The Finance Director is authorized to make a one-time payment of $4.2 million toward unfunded liabilities in Fiscal Year 2019-20. SECTION 2.The Finance Director is authorized to make a one-time payment of $1.4 million to fund a pension trust fund in Fiscal Year 2019-20. Packet Page 169 Item 15 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 3.The 2019-20 budget is hereby amended to appropriate $1,100,304 of undesignated General Fund balance to budget, including $213,020 of additional funding to be allocated to Capital Reserve, as specified in Exhibit A. SECTION 4.The 2019-20 budget is hereby amended to appropriate $238,775 of undesignated Water Fund balance to operating budget, as specified in Exhibit B. SECTION 5. The 2019-20 budget is hereby amended to appropriate $13,775 of undesignated Sewer Fund balance to operating budget, as specified in Exhibit C. SECTION 6. The 2019-20 budget is hereby amended to appropriate $106,175 of undesignated Parking Fund balance to operating budget, as specified in Exhibit D. SECTION 7. The 2019-20 budget is hereby amended to appropriate $2,375 of undesignated Transit Fund balance to operating budget, as specified in Exhibit E. SECTION 8. The 2019-20 budget is hereby amended to appropriate $400,000 of undesignated Public Art Fund balance to CIP budget, as specified in Exhibit F. SECTION 9.The 2019-21 Financial Plan is hereby amended to appropriate $885,270 of undesignated General Fund balance to be assigned for one-time budget adjustments during the adoption of the 2020-21 Supplemental Budget, as specified in Exhibit A. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: Packet Page 170 Item 15 Resolution No. _____ (2020 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 ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 171 Item 15 Resolution No. _____ (2020 Series) Page 4 R ______ Exhibits A-F: Budget Amendment Requests Exhibit A - General Fund Requests for Appropriation of FY 2018-19 One-Time Savings FY 19-20 Adoption FY20-21 Appropriation 1 Youth Services Staffing Crisis: Youth Services is facing a staffing recruitment and retention crisis. HR staff has conducted an updated compensation study for Youth Services positions. After analyzing the results of the compensation study, it was found that the San Luis Obispo Youth Services position salaries lag market competitors by roughly 29%. Parks and Rec and HR are proposing to make the 6 Youth Services Site Specialists contract, full-time positions with employee only benefits and increased wages over the next 15 months (for the remainder of the FY 19-21 Financial Plan) and monitor staffing challenges throughout this time. Concurrently, a childcare study will be completed which may contain program recommendations for City staff. This study is expected to be completed by June 30, 2021, which will allow us to take both aspects into consideration for the next Financial Plan. $17,000 $68,000 2 Police –Public Events/ Marches:Police is requesting to increase the Department overtime budget by $100,000 to help offset costs related to political marches, demonstrations (permitted and non- permitted events), Farmer's Market (two officers are required to work 5 hours each week), and Council Meetings (one officer is required to work 4 hours). Staff analyzed overtime data over the past five years and identified recurring events and other specific events (politically related) that have increased over the past three years. Since FY 2016-17, Women's marches and other demonstrations have collectively resulted in about 860 hours in overtime, which averages close to 300 hours annually. $100,000 $150,000 3 CDD Tech Support:Technical Support for builders of all-electric buildings (Clean Energy Choice Program Incentive) $50,000 4 Contract Legal Analyst/Office Manager:Request to add a Contract Legal Analyst/Law Office Manager to support ongoing operational needs, the implementation and support of new technologies and processes to increase office intake, efficiency, tracking and effectiveness, and to assist in development of long term structural sustainability plans for the office. Staff have analyzed existing City positions* (comparing the duties assigned to various levels of City staff and those intended to be assigned to a Legal Analyst/Law Office Manager) and have determined the new position proposed is most closely equivalent to a Senior Administrative/Financial Analyst or Human Resources Analyst II. $25,000 $102,000 5 Trash and Recycling Staff (Contract):The community continues to express a strong interest in the City to begin a formalized trash recycle program in the City's parks system. Currently the City services the parks system with trash service only and this is accomplished using 0.5 FTE. In order to not contaminate recycled material in the park system separate trash pickup and separate $40,000 Packet Page 172 Item 15 Resolution No. _____ (2020 Series) Page 5 R ______ recycled pickup is required. The City can accomplish this need by increase an 0.5 FTE to 1 FTE -contract staff. Additionally, the resource would be able to help coordinate removal of discarded belongings in parks, creeks and open space areas. 6 2020 Election Costs:The City has been notified that the 2020 election will cost approximately 30% more than the 2018 election due to the increased number of registered voters in the City, new regulations related to mailing requirements and the increased cost of mailing. In addition, each ballot measure is expected to cost approximately $40,000. The current budget for the 2020 election is $56,504 and the new expected costs with the increase are $84,256.38. In addition, adding the cost of one ballot measure at $40,000 would bring the total election cost to $124,256. The requested funds would cover the difference between the budgeted and expected actual costs assuming the potential for one ballot measure pending City Council direction. $67,752 7 MOTION Project Funding:These funds are needed for the continued configuration, testing and implementation of the MOTION Project. Phases 1 and 2 of the project are live, however, there is additional investment needed beyond what was originally anticipated to troubleshoot issues remaining after go live. The City is working closely with the software provider (Oracle) and implementer (Sierra Cedar) to resolve these issues at their time and cost first, but through an analysis of root cause there may be a cost to the City for resolution of some of the issues. These funds will be used for additional as-needed services from Oracle and Sierra Cedar, continuation of a full-time Project Manager (currently expected to be reduced to half-time in July 2020) to manage the project and resolution of remaining issues and additional staffing costs (including overtime) associated with the project. The methodology for the General Fund and Enterprise split is based off the originally adopted SOBC in the 16-17 Supplement (Pg D-42). $58,900 $159,706 8 Communications & Engagement Manager (1.5 Year Contract): These funds are needed to hire a contract Communications & Engagement Manager through the end of the 19 -21 Financial Plan to support the City's overall goals of transparency and engagement by serving as a centralized resource ensuring city communication is handled in the most professional, efficient manner possible. Specific duties would include producing written and visual information geared to the local community and other stakeholders, increasing city engagement on social media channels and supporting departments with their specific communication needs. This position would also work with local media to provide factual, timely information and assist city subject matter experts with responding to media inquiries. By bringing this expertise in house, the city is creating an advocate who will help all city staff keep the importance of effective, clear and proactive communication top of mind while partnering with staff on the execution of thoughtful, strategic communication programs. The first task for this position will be to develop and oversee implementation of an updated $94,191 $144,854 Packet Page 173 Item 15 Resolution No. _____ (2020 Series) Page 6 R ______ citywide communication plan that supports the city manager’s operational priorities and City Council’s policy direction and make recommendations on the allocation of communication resources including the potential consolidation of existing contract services. This position will also provide direct support to the Office of Sustainability and assist in related communication efforts. The 2019-20 Request is $24,191 in staffing costs, $70,000 in Non- Staffing Cost. The non-staffing costs are for $50K related to the production of print and other materials to support the City’s sustainability work and other tasks outlined above. Additionally, this request includes $20k related to the costs associated with onboarding a new staff member including training and development, technology, office equipment, etc. through the duration of the contract. The 2020-21 request is $144,853.80 in staffing costs. 9 Additional Legal Support:This funding is needed to support the City's response the recent claims associated with the California Voting Rights Act against the City. This request includes costs related to legal services ($150,000) and staff support ($140,151) to ensure the City has adequate resources to respond to a significant and intense work effort related to the fundamental processes by which City Council Members are elected in the City. The amount of $150,000 was derived to backfill costs already incurred by the City for legal services related to this work effort and anticipates additional costs that the City will incur. Legal services are needed to provide guidance and subject matter expertise in a complex and evolving area of law as well as the potential use of demography experts. Staff support includes a Management/Administrative Analyst position to provide direct support to the Office of the City Attorney and Administration and IT Department who will be leading this effort with project management, public outreach, research and content development. The requested funding for the Management/Administrative Analyst is through June 2021 and the position would also be available to assist with City Council special projects and other initiatives as available. The 2019-20 request is $14,194 in staffing costs, $170,000 in Non- Staffing Cost. The non-staffing costs are for $150K related to legal services. Additionally, this request includes $20k related to the costs associated with onboarding a new staff member including training and development, technology, office equipment, etc. through the duration of the contract.The 2020-21 request is $102.957.40 in staffing costs. $187,194 $102,957 10 Property Tax Allocation Splitting Model: This funding is needed to provide the City’s share in the cost for a shared work effort between the cities of Paso Robles, Atascadero and the County of San Luis Obispo to develop a model for splitting property tax allocations to incentivize housing and economic development in the region. $25,000 Packet Page 174 Item 15 Resolution No. _____ (2020 Series) Page 7 R ______ 11 Capital Reserve Replenishment for Security Improvements: As part of the FY 19-20 Mid-Year Review $380,000 of Capital Reserve funding was used for a mission-critical City Property Security project. Staff recommends using one-time savings from FY 18-19 to replenish the Capital Reserve. $380,000 12 Additional Capital Reserve Funding: Staff is recommending allocating the remaining undesignated fund balance to Capital Reserve. The 2019-20 Budget has $500,000 allocated for Capital Reserve. The additional amount will bring the allocation to $713,020. This funding can be used for unforeseen operating or capital needs. $213,020 TOTAL $1,100,304 $885,270 Exhibit B –Water Fund Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Springbrook Software Version Update:The City has been using Springbrook for utility services billings since January 2010, and the software is configured to perform all of the City's utility billing processes and also communicate field service work orders through a CityWorks integration. Currently, Springbrook software is 2 versions behind, and this system also requires integration with Cityworks, which is also being upgraded. In order to continue optimal functionality and connectivity between the two systems, an upgrade is necessary to Springbrook while Cityworks is dually installing an upgrade at the same time. This is a one- time cost for the upgrade and will be funding will be from Water Fund balance. $25,000 2 Water Rights Attorney:Utilize on-call water rights attorney Brownstein Hyatt Farber Schreck to compile and submit water rights licensing documentation for Whale Rock Reservoir and Salinas Reservoir. For nearly 30 years the City has been discussing moving from permit to license for water rights within Salinas Reservoir and Whale Rock Reservoir. The City’s water rights attorney recommends completing the required paperwork and requesting water rights licenses for Whale Rock and Salinas prior to the completion of the city’s Sustainable Groundwater Management Plan in 2022. This process could take up to three years to complete and it is necessary to begin work immediately to work on securing groundwater resources and surface water resources concurrently. The current year expenses will be covered by Water Fund balance, and ongoing expected costs will be identified and included in the supplemental budget. $200,000 3 MOTION Project Funding:These funds are needed for the continued configuration, testing and implementation of the MOTION Project. Phases 1 and 2 of the project are live, however, there is additional investment needed beyond what was originally anticipated to troubleshoot issues remaining after go live. The City is working closely with the software provider (Oracle) and implementer (Sierra Cedar) to resolve these issues at their time and cost first, but through an analysis of root cause there may be a cost to the City for resolution of some of the issues. These funds will be used for additional as-needed services from Oracle $13,775 $37,351 Packet Page 175 Item 15 Resolution No. _____ (2020 Series) Page 8 R ______ and Sierra Cedar, continuation of a full-time Project Manager (currently expected to be reduced to half-time in July 2020) to manage the project and resolution of remaining issues and additional staffing costs (including overtime) associated with the project. The methodology for the General Fund and Enterprise split is based on the originally adopted SOBC in the 16-17 Supplement (pg D-42). TOTAL $238,775 $37,351 Exhibit C - Sewer Fund Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 MOTION Project Funding:These funds are needed for the continued configuration, testing and implementation of the MOTION Project. Phases 1 and 2 of the project are live, however, there is additional investment needed beyond what was originally anticipated to troubleshoot issues remaining after go live. The City is working closely with the software provider (Oracle) and implementer (Sierra Cedar) to resolve these issues at their time and cost first, but through an analysis of root cause there may be a cost to the City for resolution of some of the issues. These funds will be used for additional as-needed services from Oracle and Sierra Cedar, continuation of a full-time Project Manager (currently expected to be reduced to half-time in July 2020) to manage the project and resolution of remaining issues and additional staffing costs (including overtime) associated with the project. The methodology for the General Fund and Enterprise split is based on the originally adopted SOBC in the 16-17 Supplement (pg D-42). $13,775 $37,351 TOTAL $13,775 $37,351 Exhibit D –Parking Fund Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Parking and Access Management Plan Update $100,000 2 MOTION Project Funding:These funds are needed for the continued configuration, testing and implementation of the MOTION Project. Phases 1 and 2 of the projects are live, however, there is additional investment needed beyond what was originally anticipated to troubleshoot issues remaining after go live. The City is working closely with the software provider (Oracle) and implementer (Sierra Cedar) to resolve these issues at their time and cost first, but through an analysis of root cause there may be a cost to the City for resolution of some of the issues. These funds will be used for additional as-needed services from Oracle and Sierra Cedar, continuation of a full-time Project Manager (currently expected to be reduced to half-time in July 2020) to manage the project and resolution of remaining issues and additional staffing costs (including overtime) associated with the project. The methodology for the General Fund and Enterprise split is based on the originally adopted SOBC in the 16-17 Supplement (pg D-42). $6,175 $16,742 Packet Page 176 Item 15 Resolution No. _____ (2020 Series) Page 9 R ______ TOTAL $106,175 $16,742 Exhibit E –Transit Fund Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 MOTION Project Funding:These funds are needed for the continued configuration, testing and implementation of the MOTION Project. Phases 1 and 2 of the projects are live, however, there is additional investment needed beyond what was originally anticipated to troubleshoot issues remaining after go live. The City is working closely with the software provider (Oracle) and implementer (Sierra Cedar) to resolve these issues at their time and cost first, but through an analysis of root cause there may be a cost to the City for resolution of some of the issues. These funds will be used for additional as-needed services from Oracle and Sierra Cedar, continuation of a full-time Project Manager (currently expected to be reduced to half-time in July 2020) to manage the project and resolution of remaining issues and additional staffing costs (including overtime) associated with the project. The methodology for the General Fund and Enterprise split is based on the originally adopted SOBC in the 16-17 Supplement (pg D-42). $2,375 $6,440 TOTAL $2,375 $6,440 Exhibit F –Public Art Fund Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21 1 Public Art Allocation to Enhance Garden Alley:Garden Alley between Garden Street and Broad Street has recently been improvement with concrete pavers as well as adjacent hotel installation. This alley has historical been used as the "back of shop" for several business fronting along Higuera. This area can easily be transformed into a downtown feature or return to previous use patterns. This funding would be provided by the Public Art Fund to support improvements that could transform this area into a special downtown feature. $200,000 2 Public Art Allocation to Anholm Greenway:The Anholm Greenway Project is a current CIP Project to increase multimodal opportunity between the downtown and Foothill area of the City. During the design development of the project, increased emphasis is planned to be put on public art in order to create an environment where the community comfortable and happy (a sense of place). This request would provide $200,000 from the Public Art Fund to install placemaking enhancements as part of the project at the Chorro Street and US 101 undercrossing. $200,000 TOTAL $400,000 Packet Page 177 Item 15 Attachment B *Indicates project that was delivered using LRM Funds Completed 2019-21 Capital Projects Project Status Approx. Construction Budget 1 *South Broad Street Pavement Improvements Completed in October $2,270,500 2 Casa/Murray Waterline Replacements Ongoing.$2,055,000 3 Stafford-Kentucky-Taft Sewer Replacement Ongoing. Completion targeted November $1,230,000 4 Osos-Leff-Santa Barbara Sewer Replacement Completed in September $1,103,000 5 Sewer Lining 2016 Substantially Completed in August $524,000 6 Foothill Pipe Bursting Completed in November $250,000 7 Sewer Lining 2019 Completed in October $228,000 8 *Meadow Park Pedestrian Bridge Replacements Ongoing.$200,000 9 Council Chamber Audio / Video Replacement Ongoing.$175,000 10 *Pickleball Courts Completed in September $167,000 11 *Dispatch HVAC Replacement Completed in October $151,000 12 Water Treatment Plant Wash Water Tank Recoat Completed in December $138,000 13 El Capitan Pedestrian Bridge Replacement Completed in December $96,000 14 Silt Removal 2019 Completed in October $97,000 15 *Swim Center Therapy Pool Re-Plaster Completed in September $96,000 16 *Fire Station 4 Emergency Backup Generator Completed in September $94,000 17 *City Hall Painting Completed in September $40,000 18 *Fire Station 3 Painting Completed in August $10,000 Total Budget for Complete or Active Projects $8,924,500 Packet Page 178 Item 15 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING THE FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT PROCEDURES WHEREAS,the Office of Management and Budget (OMB) requires the non-Federal entity to use procurement standards that conform to the procurement standards in the Uniform Guidance, codified at 2 CFR Sections 200.317-200.326; and WHEREAS,the City of San Luis Obispo (“City”) prepared and has conducted federally funded procurements in accordance with the San Luis Obispo Federal Grant Procurement Procedures (“Procedures”), attached hereto as Exhibit “A”, including for procurements conducted as of February 1, 2019; and WHEREAS,the City now desires to formalize use of the Procedures through adoption of the Procedures. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1.The recitals set forth above are true and correct and are incorporated into this resolution by this reference. SECTION 2.The City hereby adopts the San Luis Obispo Federal Emergency and Federal Grant Procurement Procedures, attached hereto as Exhibit “A”, effective as of February 1, 2019. Packet Page 179 Item 15 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 3.This resolution shall be effective as of the date of adoption. The City Clerk shall certify the adoption of this resolution. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Page 180 Item 15 Resolution No. _____ (2020 Series) Page 3 R ______ CITY OF SAN LUIS OBISPO FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT PROCEDURES Effective as of February 1, 2019 990 Palm St. San Luis Obispo, CA 93401 Exhibit A Packet Page 181 Item 15 Resolution No. _____ (2020 Series) Page 4 R ______ SAN LUIS OBISPO FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT PROCEDURES 1. Purpose The purpose of these City of San Luis Obispo (“City”) Federal Emergency and Federal Grant Procurement Procedures is to define the practices and policies governing the procurement of public works projects, contractual services, professional services or materials, supplies and equipment (i) in preparation of, during, and after an emergency that may be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence. These Federal Emergency Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 2. Emergency Authority a.“Emergency” is defined under section 2.24.020 of the City’s Municipal Code (“City Code”) as: the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the city caused by such conditions as air pollution, fire, flood, storm, hazardous materials incident, drought, sudden and severe energy shortage, plant or animal infestations or disease, epidemic, riot, nuclear emergency, earthquake or other conditions, including conditions resulting from war, terrorist acts or imminent threat of war, which conditions are, or are likely to be, beyond the control of the services, personnel, equipment and facilities of this city, requiring the combined forces of other political subdivisions to combat. (Ord. 1560 § 1, 2011: prior code § 2430.1) b. In the case of a declared emergency, section 2.24.060(A)(6)(b) of the City Code allows for emergency contracting: To obtain vital supplies, equipment and such other properties found lacking and needed for the protection of life and property and to bind the city for the fair value thereof and, if required immediately, to commandeer the same for public use. 3. Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements Exhibit A Packet Page 182 Item 15 Resolution No. _____ (2020 Series) Page 5 R ______ In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements. These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements contained in the City Code and the City Purchasing Manual. In the case of a conflict between these procedures, the City Code or the City’s Purchasing Manual, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern. a. Conflicts of Interest i. Standards of Conduct for Conflicts of Interest. No employee, officer or agent of the City shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: The employee, officer or agent; any member of his immediate family; his or her partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award.The City’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to subagreements. Such a conflict will not arise where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts. ii. Violations. Disciplinary actions to be applied for violations of the above standards are as follows. 1. The violation of these Standards of Conduct by City employees will subject the violator to any disciplinary proceedings or action deemed appropriate by the City Manager. Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations. Packet Page 183 Item 15 Resolution No. _____ (2020 Series) Page 6 R ______ 2. The violation of any of these Standards of Conduct by City officers will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations. 3. Contractors or subcontractors that violate these Standards of Conduct as relates to an active federally-funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager. 4. Agents of the City that violate these Standards of Conduct as relates to federally-funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager. b. Procurement Standards i. Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. ii. Economical Approach. The City must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. iii. Detailed Records. The City shall maintain records sufficient to detail the history of each procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. iv. Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. Protest procedures or information on obtaining the procedures shall be included in the procurement documents. Exhibit A Packet Page 184 Item 15 Resolution No. _____ (2020 Series) Page 7 R ______ c. Competition i. Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to: 1. Placing unreasonable requirements on firms in order for them to qualify to do business; 2. Requiring unnecessary experience and excessive bonding; 3. Noncompetitive pricing practices between firms or between affiliated companies; 4. Noncompetitive contracts to consultants that are on retainer contracts; 5. Organizational conflicts of interest, as further detailed herein; 6. Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and 7. Any arbitrary action in the procurement process. ii. Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for a City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-by-case basis. iii. Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. iv. Procurement Transactions. The City shall require the following information for procurement transactions: 1. A clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service Exhibit A Packet Page 185 Item 15 Resolution No. _____ (2020 Series) Page 8 R ______ to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and 2. All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. v. Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period. d. Procurement Procedures The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein. i. Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micro-purchases equitably among qualified suppliers. ii. Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $250,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources. iii. Formal, Sealed Bidding. 1. Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101. 2. This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the Exhibit A Packet Page 186 Item 15 Resolution No. _____ (2020 Series) Page 9 R ______ selection of the successful bidder can be made principally on the basis of price. 3. The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation. 4. Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason. iv. Competitive Proposals. 1. When the nature of a procurement does not lend itself to formal, sealed bidding, the City may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or cost- reimbursement type contract is awarded. 2. A request for proposals (RFP) must be publicly advertised, and the City must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed. 3. Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision. a.The City’s procurement officer shall establish a formal evaluation committee, of at least two persons. The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and represented by individuals involved with the procurement and/or affected by the goods or services being procured. b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award. 4. Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or price- related factors. 5. If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered. v. Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E Exhibit A Packet Page 187 Item 15 Resolution No. _____ (2020 Series) Page 10 R ______ procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable. vi. Noncompetitive Procurements. 1. Contracts may be procured through a noncompetitive proposal only when: a. The item is only available from a single source; b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City; or d. Competition is deemed inadequate after the solicitation of a number of sources. vii. Public Projects. Public projects shall be procured by the formal contract bid procedure as set forth Chapter 3.24, Article III, Formal Contract Procedure of the City’s Municipal Code, Section 203 of the City Purchasing Manual, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply. viii. Award. 1. Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. 2. Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award Management (SAM), www.sam.gov, must be performed and documented in the procurement records prior to award. e.Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms i. The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below. The City shall: 1. Place qualified small and minority businesses and women's business enterprises on solicitation lists; 2. Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; Packet Page 188 Item 15 Resolution No. _____ (2020 Series) Page 11 R ______ 3. Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; 4. Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; 5. Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and 6. Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. ii. The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file. f. Cost and Price i. Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City must, at a minimum, make independent estimates before receiving bids or proposals. ii. Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b). iii. Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq. g. Payment Procedures i. Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods. ii. Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought. iii. Time and Materials (“T&M”) Contracts 1. T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the City cannot define a clear scope of work. 2. The City shall only enter into a time and materials contract if all of the following apply: a. The City has determined and documented in the project file that no other contract is suitable; Exhibit A Packet Page 189 Item 15 Resolution No. _____ (2020 Series) Page 12 R ______ b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. 3. The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., non-T&M). iv. Separate Invoicing 1. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases. All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivered. All invoices shall specify the location(s) where the goods or services were used, if possible. Any invoice which fails to properly identify the emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such errors are corrected by the vendor and re-submitted in correct form. v. Auditing of Invoices for Debris Removal. All invoices for debris clearance and removal shall be audited prior to payment to the contractor. Contractors shall be notified of this requirement prior to the award of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide. h. Bonding Requirements i. Bonding. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold (See 2 CFR 200.88), the City shall require at a minimum: 1. A bid guarantee from each bidder equivalent to five percent of the bid price. 2. A performance bond on the part of the contractor for 100 percent of the contract price. 3. A payment bond on the part of the contractor for 100 percent of the contract price. i. Procurement of Recovered Materials i. For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative Exhibit A Packet Page 190 Item 15 Resolution No. _____ (2020 Series) Page 13 R ______ procurement program for procurement of recovered materials identified in the EPA guidelines. ii. This requirement applies to purchases of items when the purchase price of the item exceeds $10,000, or the value of the quantity acquired during the preceding fiscal year exceeded $10,000. j. Contract Provisions i. Contract Provisions. The City’s contracts shall contain the applicable provisions described in Appendix II to Part 200 –Contract Provisions for Non-Federal Entity Contracts Under Federal Awards. k. Pre-Event Contracts i. The City may choose to solicit bids and proposals and award contracts in non-disaster times. This may include, but is not limited to, debris removal contracts and debris monitoring contracts. Exhibit A Packet Page 191 Item 15 Page intentionally left blank. Packet Page 192 Item 15 Department Name: Community Development Cost Center:4003 For Agenda of:March 17, 2020 Placement:Public Hearing Estimated Time:60 minutes FROM: Michael Codron, Community Development Director Prepared By:Teresa McClish, Special Projects Manager Shawna Scott, Senior Planner Dave Watson, Contract Planner SUBJECT:REVIEW OF THE PROPOSED “EAST AIRPORT” ANNEXATION OF APPROXIMATELY 58 ACRES OF PROPERTY (33 PARCELS) ALONG BROAD STREET AT FARM HOUSE LANE KENDALL ROAD-PROSPECT STREET AND ASSOCIATED INFRASTRUCTURE IMPROVEMENTS, INCLUDING APPROVAL OF A PLAN FOR SERVICES, PRE-ANNEXATION AGREEMENT, AND APPLICATION TO THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) REGARDING THE PROPOSED ANNEXATION, AND ADOPTION OF AN INITIAL STUDY/MITIGATED NEGATIVE DECLARATION (SCH#2000051062) (PL-ANNX-2030-2018; EID- 0006-2020) RECOMMENDATION As recommended by the Planning Commission, adopt the Draft Resolution (Attachment A) to: 1. Approve and authorize the Mayor to execute the Pre-Annexation Agreement for the Annexation of the East Airport area as recommended by the Planning Commission (Attachment B, also Exhibit A to Draft Resolution); 2. Approve the filing of an application and request for San Luis Obispo Local Agency Formation Commission (LAFCO) to initiate proceedings for annexation of the East Airport Annexation Area (Attachment C); 3. Adopt the Plan for Services for the East Airport Annexation Area (Attachment D); 4. Introduce an Ordinance addressing non-conforming uses in the East Airport Annexation Area (Attachment E); 5. Direct the Community Development Director to process the annexation application; 6. Authorize the City Manager to execute any documents in a form approved by the City Attorney related to the East Airport Annexation Area to the City of San Luis Obispo; 7. Authorize the City Manager to initiate tax negotiations with the County of San Luis Obispo; 8. Adopt the associated Initial Study/Mitigated Negative Declaration (IS-MND, Attachment F) for the annexation, which tiers off the certified Final Environmental Impact Report for the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans (SCH# 2000051062). Packet Page 193 Item 16 REPORT-IN-BRIEF The East Airport area annexation, proposed by the landowners associated with the East Airport Commerce Park and the Senn-Glick properties (EACP-S/G), includes 33 parcels and 58.31 acres of land located within the Airport Area Specific Plan (AASP) (Attachment C, Annexation Map). Of the 33 parcels within the proposed annexation, 20 parcels are developed with businesses totaling 329,003 SF, along with two improved storm drainage parcels and one site with water facilities serving the area. As outlined in the IS-MND (Attachment F), annexation and buildout of the subject area includes planning for both public and private infrastructure upgrades and improvements, public facility financing, development impact fees and the transition of the properties into the City. The subject area has long been identified as an annexation area, pursuant to the City Council’s adoption of the AASP on August 23, 20051 and Ordinance No. 1481,2 which established pre- zoning within the AASP, including the East Airport Annexation Area. The City’s General Plan3 and AASP4 (and associated Environmental Impact Reports and analyses5,6) have included the proposed annexation area when considering potential future growth and associated demands for public infrastructure and transportation improvements. As the proposed annexation is consistent with these documents, a tiered IS-MND is proposed for Council adoption. The proposed annexation of the East Airport Area would occur under the guidance of a Pre- annexation Agreement (Attachment B) and proposed Plan for Services (Attachment D), which, among other infrastructure improvements, would call for the conversion of the East Airport Area to City wastewater collection, treatment and disposal, and provide for the decommissioning of the FLWC wastewater operations. The Planning Commission considered the proposed annexation and associated IS/MND on January 22, 2020 and recommended the City Council authorize the annexation and adopt the environmental document. A majority of the Commission’s discussion focused on the adequacy of the previous environmental reviews in the context of potential buildout for the East Airport Area. During the hearing, staff explained that major infrastructure needs, such as water supply, available capacity to receive and treat wastewater, increased traffic, recycled water demands and similar public services, are readily available or will be provided under the Plan for Services, as well as contributions to the City’s Traffic Improvement Funds provided for under the Pre- Annexation Agreement. 1 Council Agenda Report adopting the AASP: https://opengov.slocity.org/WebLink/DocView.aspx?id=31312&dbid=0&repo=CityClerk 2 Ordinance No. 1481: https://opengov.slocity.org/WebLink/DocView.aspx?id=50593&dbid=0&repo=CityClerk 3 Land Use Element Policy 1.13.5 Annexation in Airport Area; Policy 7.7 City Annexation and Services; Policy 7.14 Growth Management (see: http://www.slocity.org/home/showdocument?id=6635) 4 AASP Chapter 9.1 (see: http://www.slocity.org/home/showdocument?id=4294) 5 Land Use and Circulation Element Final EIR: https://www.slocity.org/government/department- directory/community-development/planning-zoning/general-plan 6 AASP and MASP Final EIR: https://www.slocity.org/government/department-directory/community- development/documents-online/environmental-review-documents/-folder-719 Packet Page 194 Item 16 Based on the evaluation presented in this report and recommended Pre-Annexation Agreement, the proposed annexation would be consistent with the stated goals of the City’s General Plan, AASP, and long-term interest in bringing this East Airport Area into the City. The planned public and private infrastructure improvements are consistent with the General Plan and AASP and are addressed in the certified Final EIRs for the Land Use and Circulation Element (LUCE) and AASP, and the recommended IS/MND. Timing of improvements and financial contributions by the applicants/property owners are adequate to address a coordinated transition of the land from County control to the City. Following City Council action, if authorized, the City will work with the applicants/property owners on a coordinated annexation application submittal to LAFCO. DISCUSSION Background The East Airport Annexation area, proposed by the applicant/property owners of the EACP-S/G developments, include 33 parcels and 58.31 acres of land located within the AASP boundary, on the east side of Broad Street, bounded by Farmhouse Lane and Kendall Road, including Allene Way, Morabito Place and Prospect Street (Attachment C). The East Airport Annexation area is located within the City’s Sphere of Influence and adopted LAFCO Urban Service Area for the City. The area is developed with a mix of industrial, manufacturing, commercial, and office uses, with an estimated 329,003 square feet of total building area. Figure 1.East Airport Proposed Annexation Area Packet Page 195 Item 16 Approximately 23 of the 33 parcels comprising the East Airport Annexation area are developed. This includes 20 developed businesses, two storm drainage ponds and one site for water facilities serving the area. Several of the 10 remaining vacant parcels are in various stages of the development process with the County, for example the People’s Self-Help Housing (PSHH) sites (currently two sites undergoing a “merger” to a single parcel), which will include its corporate headquarters. PSHH has also secured planning entitlements and is currently moving through the County Building Permit process. According to data provided by the applicant/property owners, a combined total of 329,003 SF of buildings are completed within the East Airport Annexation area; with 25,025 SF currently under construction and 33,448 SF in building permit review by the County, for a total of 387,476 SF. A maximum of 693,367 SF of allowable building area is established under County land use designations and approvals. Environmental analysis and planning for public services for the annexation area has taken these buildout densities into account as noted in the following summary and detailed in the IS-MND for this proposed annexation (Attachment F). Planning Commission Review and Recommendation On January 22, 2020 the Planning Commission conducted a public hearing to consider the proposed annexation and associated IS/MND and provided a recommendation to the City Council (Attachment G). The Planning Commission’s review included consideration of the AASP, a Pre-Annexation Agreement (Attachment B) for the property, the proposed Plan for Services (Attachment D) for the annexation, as well as the progress made in identifying public infrastructure and private improvements necessary to accommodate the East Airport Annexation area and provision of public services to the area. The Commission’s discussion focused on the previous environmental reviews in the context of potential buildout for the property. Approximately 329,000 SF of the area is built out on 20 of the 30 developable parcels (three parcels include storm drainage and water facilities). Under County entitlements for the parcels, up to 693,367 SF of development would be possible in the area. As noted in the Planning Commission staff report and the proposed IS-MND, this County potential threshold of development has been used in the environmental analysis and planning for public services incorporated into the Pre-Annexation Agreement and Plan for Services. However, the environmental review is tiered off of the LUCE EIR and AASP EIR that evaluated build-out of the City, including the East Airport Annexation area based on compliance with the approved pre-zones and General Plan land use designations. The LUCE anticipated build out square footage of 1,791,815 SF of non-residential building area (excluding Avila Ranch), estimated on assumptions of City development standards and conditions. These documents evaluated environmental impacts associated with build-out and identified required improvements to mitigate identified impacts. As noted during Planning Commission discussion, once annexed to the City, the County threshold of 693,367 SF would not be limiting for the area, and any development (or redevelopment) proposed in the East Airport Annexation area would be considered on its own merits and subject to further California Environmental Quality Act (CEQA) review and City Zoning and Specific Plan standards, as such applications are received. Packet Page 196 Item 16 However, given approximately two-thirds of land is developed, and the pattern of existing development, it is reasonably anticipated that the future build out under the City’s AASP will be similar or only slightly higher to what was anticipated under County approvals and may not reach intensities contemplated in the LUCE and AASP EIRs. Major infrastructure needs, such as water supply, available capacity to receive and treat wastewater, increased traffic, recycled water demands and similar public services are readily available or will be provided under the Plan for Services as well as contributions to the City’s Traffic Improvement Funds provided for under the Pre-Annexation Agreement. At public hearing’s conclusion, the Planning Commission voted 6-0 to recommend the following to City Council: 1) Approve the filing of an application for annexation of the East Airport area and direct the Community Development Director to process the application with LAFCO; 2) Authorize the City Manager to execute any documents in a form approved by the City Attorney related to the East Airport Annexation Area to the City of San Luis Obispo; 3) Adopt a Pre-Annexation Agreement and Plan For Services for the subject annexation; 4) Adopt an Ordinance acknowledging non-conforming uses that are located within the annexation area; and 5) Adopt the proposed IS-MND. Annexation Description The applicant is proposing annexation that will result in the continuance of existing uses and future development patterns that reflect manufacturing, offices and construction services. The zoning designation will be C-S-SP, consistent with the pre-zoning designation pursuant to the City Council’s adoption of the AASP on August 23, 2005 and Ordinance No. 1481. This annexation area has historically obtained its water via on-site groundwater wells and is currently receiving wastewater services via the Fiero Lane Water Company (FLWC). The FLWC is the subject of a pending application with LAFCO to be annexed to the City (aka “West Airport Annexation”). The FLWC is currently receiving City water service under an Outside User’s Agreement approved by the San Luis Obispo LAFCO, pursuant to a Memorandum of Agreement (MOA), Municipal Code amendment, and Addendum to the AASP Final EIR approved by the City Council in 2015.7 Under these approvals the FLWC was permitted to continue providing wastewater services to the East Airport Area until such time as annexation of the East Airport Area could be completed. FLWC provides wastewater service to this area via a small private treatment plant and disposal area located within the West Airport Annexation area. Upon annexation of the Fiero Lane-Clarion Court area to the City, wastewater services will be converted to connect to City utility systems. In the case of the FLWC wastewater treatment plant serving the East Airport area, this plant would need to be moved to the EACP/S-G area to continue to provide service pending EACP/S-G annexation to the City. Staff anticipates that the East Airport Area- annexation and conversion to City services can be completed concurrently, eliminating the need to relocate the private treatment plant. The FLWC annexation has been planned to cover either circumstance (relocation and continued private treatment for EACP/S-G or concurrent conversion to City treatment system) depending on the ultimate timing of the East Airport Area annexation. 7 Council Agenda Report addressing the 2015 MOA and Outside User’s Agreement, including Addendum to AASP FEIR:https://opengov.slocity.org/WebLink/DocView.aspx?id=53305&dbid=0&repo=CityClerk Packet Page 197 Item 16 Public Facility Financing and Development Impact Fees As detailed in the Pre-Annexation Agreement and as noted in the Plan for Services for the East Airport Annexation area, annexation of the subject parcels will trigger the need for various capital investments in the existing private systems that will be made public under the terms of the annexation. To complete these improvements, a financing mechanism has been proposed by the applicant/property owners that will allow capital improvements to be engineered, constructed and paid for through the Statewide Community Infrastructure Program (SCIP)8. This financing program will allow plans to be developed, bids to be secured, and then applicant/property owners will have the option of paying their fair share of construction costs upfront or elect to finance the improvements in an approach very similar to assessment district financing. The City Council adopted Resolution No. 10959 (2018 Series) in support of this financing program and it is considered appropriate for this use. The SCIP program also allows development impact fee contributions negotiated in the MOAs to be paid or financed in this fashion. Water Demands and Wastewater Generation from the Proposed Annexation Because of the partially developed nature of the annexation area, information is readily available to use in identifying current demands and can be used to project buildout demands for each service to ensure City resources are readily available to support the annexation areas. Current and projected water and wastewater needs are summarized below. Table 1. Annexation Area Water Demand and Wastewater Generation Developed Parcels Acres Building Area Water Demand (1) Wastewater Generated (1) Projected Total Bldg Area East Airport Park 39.76 ac 309,003 SF 14.62 AFY 4,470 gpd 513,367 SFSenn/Glick 5.08 ac 20,000 SF Undeveloped Parcels 13.47 ac 0 SF 16.19 AFY 4,950 gpd 180,000 SF Totals 58.31 ac 329,003 SF 30.81 AFY 9,420 gpd 693,697 SF Notes: (1) 2017 Fiero Lane Water Mutual Company record data for developed parcels. Existing data used to project buildout demands. Projected remaining buildout 364,364 SF. Pursuant to the City’s 2018 Water and Wastewater Element, which addresses build-out under the City’s Land Use Element (including the subject annexation), and consultation with the City Utilities Department, existing and future water availability and sewer capacity is adequate to serve the East Airport Annexation area. 8 For general information about SCIP, see here: http://cscda.org/Infrastructure-Finance-Programs/Statewide- Community-Infrastructure-Program-(SCIP) Packet Page 198 Item 16 Policy Context General Plan Policy Consistency The 2014 General Plan Land Use Element (LUE) established a number of community goals, policies and programs for annexation and development that relate to the proposed annexation area (refer to additional discussion below), including: 1. SLO County Airport Land Use Plan Consistency 2. Annexations and Growth Management 3. Airport Area Specific Plan Consistency 4. Financing of Fair-Share Infrastructure and Development Impacts SLO County Airport Land Use Plan Consistency.General Plan Chapter 7, Policy 7.7 provides that the subject annexation areas shall be actively pursued by the City provided the annexations are consistent with the Airport Area Specific Plan and LUE Policy 1.13.5 (Annexation in Airport Area). The proposed East Airport Area annexation is consistent with the standards for land uses, infrastructure and fair-share cost contributions of the AASP. The AASP has been determined to be consistent with the County’s Airport Land Use Plan (ALUP), and the uses that exist within the annexation area were approved by the County under findings of consistency with the ALUP. As proposed, the annexation will result in a continuation of the previously permitted uses and any future uses would be subject to AASP standards, the City’s Zoning Regulations, and Community Design Guidelines. There is one note regarding City land use consistency, related to several existing businesses within the area, which include general office and governmental facilities. Some of these office uses also include businesses that are of a non-profit nature. Under the City’s land use and zoning district definitions, stand-alone “office” uses would not be permitted in the proposed “Service Commercial (SC)” designation (aka “non-conforming land uses”). Offices providing support to manufacturing, warehousing and similar uses that are located on the same site as the noted uses within the East Airport Area are consistent with the SC designation. In the case of the proposed annexation, it is not the City’s intent to disrupt or preclude these existing (otherwise “non-conforming”) businesses from continuing, or to restrict replacement uses of a similar nature. To address this, Section 12.1 of the Pre-Annexation Agreement includes a provision that an Ordinance would be considered by City Council to propose allowing the otherwise non-conforming uses to remain and/or be replaced by similar uses, at the discretion of the Community Development Director. The proposed amendments to the Municipal Code would authorize the Community Development Director to (i) waive current municipal code provisions that prohibit re-establishing a previously existing or similar non-conforming use if the prior existing use is ceased for periods of 12 months or more and/or (ii) permit substitution of new non-conforming office-government uses that do not contribute to greater environmental impacts than the previous use. A draft of this proposed Ordinance is provided as Attachment E for City Council consideration and adoption. Packet Page 199 Item 16 Annexations and Growth Management.Noted LUE Policies include: 1.13.3. Annexation Purpose and Timing The City may use annexation as a growth management tool, both to enable appropriate urban development and to protect open space. Areas within the urban reserve line which are to be developed with urban uses should be annexed before urban development occurs. The City may annex an area long before such development is to occur, and the City may annex areas which are to remain permanently as open space. An area may be annexed in phases, consistent with the city-approved specific plan or development plan for the area. Phasing of annexation and development will reflect topography, needed capital facilities and funding, open space objectives, and existing and proposed land uses and roads. 1.13.5. Annexation in Airport Area Properties in the Airport Area Specific Plan may only be annexed if they meet the following criteria: A. The property is contiguous to the existing city limits; and B. The property is within the existing urban reserve line; and C. The property is located near to existing infrastructure; and D. Existing infrastructure capacity is available to serve the proposed development; and E. A development plan for the property belonging to the applicant(s) accompanies the application for annexation; and F. The applicant(s) agree to contribute to the cost of preparing the specific plan and constructing area-wide infrastructure improvements according to a cost - sharing plan maintained by the City. Following the adoption of the City’s 2014 AASP, as noted earlier, planning for the Fiero-Clarion annexation commenced. Since that time additional planning for the East Airport Area annexation has been underway. This simultaneous planning process results in a greater degree of coordination in bringing these annexation areas, which currently share independent private infrastructure in the County, into the City. In this case, the East Airport Annexation area satisfies all the prerequisites under General Plan LUE Policy 1.13.5 and is recommended for annexation. Airport Area Specific Plan Consistency.The AASP includes a series of goals, policies and programs to comprehensively guide development of the Planning Area. Additional guidelines and development standards are included in the AASP, as well as infrastructure requirements and a plan for implementation of the Plan. Overall goals of the AASP include: 1. Provide a framework to move from County developments primarily focused on heavier industrial and manufacturing uses to a blend of these established uses, both inside and outside the City, with new uses focused on lighter industrial and manufacturing uses, professional and business park developments and employment centers. 2. Plan for proposed development, including annexations within the Planning Area, so that public facilities are developed concurrently with new development in a rational and cost- effective fashion. Packet Page 200 Item 16 3. Protect and enhance natural resources within the AASP, including emphasis on maintaining visual qualities of the surrounding hills and open space areas and protection of creek corridors, wetlands and habitat qualities. The uses that exist in the annexation area are consistent with the uses anticipated by the City’s AASP, and the annexation does not include any changes to the pre-zoning previously approved by the City Council. As described herein and in the referenced attachments, the financial and infrastructure planning needed to bring these properties into the City have been completed. In and of itself, the annexation of the subject properties will not change the built environment of the area. Any expansion or modification of existing uses will be subject to City development standards. Future planning and development would be managed under the AASP standards and would result in consistency as new projects are brought forward. Financing of Fair-Share Infrastructure and Development Impacts.General Plan Policies discussed previously focus on new development paying its fair share. The proposed annexation will be responsible under the proposed Pre-Annexation Agreement for financing infrastructure and paying negotiated development impact fees and contributions to assist in addressing project impacts, such as traffic, pedestrian and bicycle paths. These contributions, whether paid up front or financed under the SCIP approach, will ensure adequate contributions are received from the annexation areas. Pre-Annexation Agreement A Pre-Annexation Agreement is proposed to clarify zoning, including uses and standards, and required improvements, easements and fees (Attachment B). Development impact fee and timing of payment are specified for developed and undeveloped properties. The applicant/property owners have agreed to a traffic impact fee payment of $1,000,000 to fulfill the East Airport Annexation area’s participation in the Citywide Transportation Impact Fee program for existing and future buildable development up to the County threshold of 680,000 SF, with any additional development beyond that threshold subject fees applicable at the time of development. Required improvements include utility infrastructure and testing requirements and public works infrastructure improvements. Also included in the agreement are legal descriptions for property being annexed, detailed development information and allocation, and offer of dedications. Plan for Services The proposed annexation area has been analyzed to identify its impact on overall City services. To document this and the recommendations derived from that analysis, a Plan for Services has been developed for the annexation area (Attachment D). A summary of that document is included below. Current Conditions –East Airport Annexation Area.Broad Street/State Route 227 provides vehicular access to the area via Farmhouse Lane and Kendall Road. Internal circulation is supported by Allene Way, Morabito Place and Prospect Street. State Route 227 is maintained and operated by CalTRANS and ownership would remain with the state under the proposed annexation. Packet Page 201 Item 16 Domestic water is delivered to the East Airport Area by on-site wells and private water distribution systems. Wastewater is collected within the annexation area by gravity lines to a location near Broad Street and Farmhouse Lane where a lift station operates, and then is conveyed by force main to the FLWC private treatment plant at the end of Fiero Lane (within the West Airport Annexation area). Treated FLWC wastewater is disposed of in a leach field format in the County to the immediate south (and outside) the West Airport Annexation area. Emergency services are provided by the County, but these areas are also supported by the City under mutual aid agreements between the City and County. General government services are provided by the County. Storm water management, collection and disposal is handled by the private property owners under County-approved plans. Solid waste services are provided by the County via private contract with local waste and recycling providers. Post-Annexation Conditions –East Airport Annexation Area.Roadway rehabilitation and upgrades are planned to bring the roads, sidewalks and signage up to City standards. Following annexation, the roads, curbs, gutters and sidewalks will be maintained by the City under the Pavement Management Plan. Water system upgrades for the annexation area will include connecting to the Terrace Pressure Zone at Broad and Fuller Streets, installation of pressure reducing valves as appropriate and hydrant replacements. Valving and backflow prevention will be installed as directed by City Department staff. City domestic water service will be provided under the annexation proposal. The gravity wastewater system will be converted to interconnect with a gravity collection line in Broad Street, and from there is conveyed to the City’s Wastewater Treatment Plant (WWTP). The force main and lift station currently serving the area will be abandoned. Recycled water supplies are also included in the Plan for Services, with extensions made by the applicant/property owner within the annexation area, to facilitate connection to this supply when it can be made available. Police and Fire emergency services will be provided by the City. It is expected the mutual aid agreements will remain between the City and County. General government services will be assumed by the City. Storm water management and solid waste services will continue as presently exist. Conclusion Based on this summary and the evaluation included in the Planning Commission’s consideration and the January 22, 2020 staff report, the proposed East Airport Area Annexation will be consistent with the stated goals of the City’s General Plan, AASP and long-term interest in bringing this area into the City. Planned public and private infrastructure improvements, and the timing of these improvements and contributions to the City, are consistent with the AASP and Plan for Services and are adequate to address a coordinated transition of the lands from County to City jurisdiction. Packet Page 202 Item 16 Public Engagement Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s Municipal Code, staff noticed this item per the City’s notification requirements. Newspaper legal advertisements were posted in The New Times ten days prior to each meeting (Planning Commission and City Council). Additionally, postcards were sent to both tenants and owners of properties located within 300 feet of the project site ten days before each advisory body hearing. Public comment was provided to the Planning Commission through written correspondence and through public testimony at the January 22, 2020 hearing. CONCURRENCE Staff from the Fire, Utilities, Community Services and City Attorney Departments have provided comments during review of the proposed annexation that are incorporated into the presented evaluations and attached Pre-Annexation Agreement and Plan for Services. ENVIRONMENTAL REVIEW Environmental analysis of the proposed annexation has been guided by previous work in the form of the Airport Area and Margarita Area Specific Plans Final EIR (2005), FEIR Addendum for the Airport Area and Margarita Area Specific Plans (2015), and the City of San Luis Obispo General Plan LUCE FEIR (2014). An Initial Study of environmental impact was prepared to evaluate whether there have been changed circumstances since the referenced FEIRs were completed, to analyze consistency of the annexation with the General Plan and AASP, and to identify any potentially necessary mitigation measures that should be applied to the annexation process, as well as the completion of needed infrastructure (new or rehabilitation) to support City services to the areas. The Notice of Intent to Adopt an IS/MND was advertised in The New Times on January 9, 2020 and filed with the San Luis Obispo County Clerk on January 15, 2020. The IS/MND was also submitted to the State Clearinghouse on January 16, 2020. The 30-day public review period started on January 15, 2020 and ended February 14, 2020 The proposed Pre-Annexation Agreement and Plan for Services were relied on to identify the needed infrastructure that is incorporated into the Project Description for the annexation. The conclusion of the Initial Study completed for the proposed annexation is that by incorporating the needed infrastructure features of the Pre-Annexation Agreement and Plan for Services, in addition to and as a direct result of the analysis of the noted FEIRs, and implementation of mitigation measures identified in the Initial Study, the annexation and provision of infrastructure services to the area would result in less than significant effects on the environment. Therefore, an IS-MND is recommended for adoption in association with the proposed East Airport Area annexation (Attachment F). Packet Page 203 Item 16 FISCAL IMPACT Budgeted: Yes Budget Year: 2019-2021 Funding Identified: Fee supported activity based on 100% cost recovery. Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund NA State Federal Fees Other: Total When the AASP was adopted, it was accompanied by a fiscal impact analysis, which found that annexation of the properties within the AASP boundary would result in positive fiscal impacts for the City; approximately $750,000 net fiscal benefit annually at build- out. The proposed annexation will help the City realize the positive fiscal impact indicated in the fiscal analysis, as anticipated by the AASP. One of the key and critical next steps is to negotiate a tax exchange agreement with the County. Approval of a tax exchange agreement is a precedent requirement before LAFCO can finalize the proposed annexation. Because the proposed area is largely developed, the Master Tax Exchange Agreement provides that the City and the County will negotiate both existing and future tax revenues.9 These negotiations cannot commence until the City Council approves the filing of an application. ALTERNATIVES 1.Continue the item. An action to continue the item should include a detailed list of additional information or analysis needed to make a determination on the project. 2 Deny the proposed annexation based on findings of inconsistency with the AASP and/or General Plan. This action is not recommended because the analysis indicates the project is consistent with the General Plan and AASP. 9 1996 Property Tax Exchange Agreement:For commercial and industrial annexation areas already substantially developed, tax exchange will be negotiated on a case-by-case basis between the annexing city and the County to determine an appropriate property tax sharing arrangement, based upon the principle of fiscal neutrality for the County. Packet Page 204 Item 16 Attachments: a - Draft Resolution b - COUNCIL READING FILE - Pre-annexation Agreement and Exhibits c - Annexation Map d - Plan for Services e - Draft Ordinance f - COUNCIL READING FILE - Initial Study/Draft Mitigated Negative Declaration g - Planning Commission Draft Minutes & Resolution from January 22, 2020 Packet Page 205 Item 16 R _____ RESOLUTION NO. ________ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE ANNEXATION OF THE EAST AIRPORT ANNEXATION AREA PROPERTIES (EAST AIRPORT COMMERCE PARK ASSOCIATION, SENN-GLICK) TO THE CITY OF SAN LUIS OBISPO (PL-ANNX-2030-2018, EID-0006-2020) WHEREAS, the City of San Luis Obispo’s (City) General Plan and Airport Area Specific Plan call for annexation of the area commonly referred to as the East Airport Annexation Area; and WHEREAS, the City is actively working with the applicants and their consultants on detailing the various improvements and implementation of the financing plans to complete said improvements; and WHEREAS, a Pre-Annexation Agreement has been prepared that outlines the responsibilities of the applicants for the improvement of public and private infrastructure to serve the East Airport Annexation Area, and a financing plan to fund those improvements and the payment of fair-share traffic impact fees to the City; and WHEREAS,a“Plan For Services” has been developed that include details on the studies, analysis, scheduling and financing for the consideration of said annexation and the needed public and private infrastructure improvements to be completed as part of any annexation; and WHEREAS, a duly noticed Public Hearing before the Planning Commission was held on January 22, 2020 to consider testimony and input on the proposed annexation, needed public and private infrastructure improvements, development impact fees and charges to be paid to the City, environmental considerations for the annexation, and review of the timing and implementation of said fees and improvements; and WHEREAS,environmental analysis of the proposed annexation has been guided by previous work in the form of the Airport Area and Margarita Area Specific Plans Final EIR (2005), FEIR Addendum for the Airport Area and Margarita Area Specific Plans (2015), and the City of SLO General Plan Land Use and Circulation Elements (LUCE) FEIR (2014); and WHEREAS,an Initial Study of environmental impact was prepared for the proposed annexation, which tiers from the certified FEIR for the Airport Area and Margarita Area Specific Plans, documents whether there have been changed circumstances since those referenced FEIRs were completed, analyzes consistency of the annexation with the General Plan and Airport Area Specific Plan, and identifies mitigation measures that would be required to mitigate potentially significant impacts resulting from the annexation process and the construction of needed infrastructure (new or rehabilitation) to support City services to the areas; and Packet Page 206 Item 16 Resolution No. ________(2020 Series) Page 2 R _____ WHEREAS, the conclusion of the Initial Study of environmental impact was prepared for the proposed annexation, which tiers from the certified FEIR for the Airport Area and Margarita Area Specific Plans, documents whether there have been changed circumstances since those referenced EIRs were completed, analyzes consistency of the annexation with the General Plan and Airport Area Specific Plan, and identifies mitigation measures that would be required to mitigate potentially significant impacts resulting from the annexation process and the construction of needed infrastructure (new or rehabilitation) to support City services to the areas; and WHEREAS,the conclusion of the Initial Study of environmental impact is that by incorporating the needed infrastructure features of the Pre-Annexation Agreement as well as the Plan For Services, in addition to and as a direct result of the analysis of the noted FEIRs, and implementing noted mitigation measures, any significant effects of the annexation and provision of infrastructure services to the area would result in a less than significant effect on the environment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1.CEQA Findings, Mitigation Measures, and Mitigation Monitoring Program. Based upon all the evidence, the Planning Commission recommends that the City Council adopt the following California Environmental Quality Act (CEQA) findings in support of the project: a) The proposed project, as conditioned herein, is consistent with the requirements of the certified Airport Area and Margarita Area Specific Plans and Related Facilities Master PlansFinal Environmental Impact Report (FEIR) (SCH# 2000051062),and City of San Luis Obispo Land Use and Circulation Element (LUCE) Update EIR (2014) (SCH# 2013121019) and this action incorporates those FEIR mitigation measures as detailed herein. b) A supplemental, tiered, initial study has been prepared for the project, which addresses potential environmental impacts resulting from the proposed project, and the Community Development Director has recommended that the results of that additional analysis be incorporated into an Initial Study-Mitigated Negative Declaration (IS- MND) of environmental impacts, and recommends adoption of identified mitigation measures, all of which are incorporated below. c) All potentially significant effects were analyzed adequately in the referenced FEIR and IS-MND, subject to the following mitigation measures being incorporated into the project and the mitigation monitoring program: Packet Page 207 Item 16 Resolution No. ________(2020 Series) Page 3 R _____ Air Quality AQ-1: Naturally Occurring Asbestos. Naturally Occurring Asbestos (NOA) has been identified as a toxic air contaminant by the California Air Resources Board (ARB). Under the ARB Air Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface Mining Operations, prior to any grading activities a geologic evaluation shall be conducted to determine if NOA is present within the area that will be disturbed. If NOA is not present, an exemption request must be filed with the District. If NOA is found at the site, the applicant must comply with all requirements outlined in the Asbestos ATCM. This may include development of an Asbestos Dust Mitigation Plan and an Asbestos Health and Safety Program for approval by the APCD. More information on NOA can be found at http://www.slocleanair.org/business/asbestos.asp. AQ-2: Asbestos Material in Demolition. Demolition activities can have potential negative air quality impacts, including issues surrounding proper handling, demolition, and disposal of asbestos containing material (ACM). Asbestos containing materials could be encountered during demolition or remodeling of existing buildings. Asbestos can also be found in utility pipes/pipelines (transite pipes or insulation on pipes). If utility pipelines are scheduled for removal or relocation or a building(s) is proposed to be removed or renovated, various regulatory requirements may apply, including the requirements stipulated in the National Emission Standard for Hazardous Air Pollutants (40CFR61, Subpart M - asbestos NESHAP). These requirements include but are not limited to: 1) notification to the APCD, 2) an asbestos survey conducted by a Certified Asbestos Inspector, and, 3) applicable removal and disposal requirements of identified ACM. More information on Asbestos can be found at http://www.slocleanair.org/business/asbestos.php. AQ-3: Developmental Burning. APCD regulations prohibit developmental burning of vegetative material within San Luis Obispo County. AQ-4: Permits. Portable equipment and engines 50 horsepower (hp) or greater, used during construction activities will require California statewide portable equipment registration (issued by the ARB) or an Air District permit. The following list is provided as a guide to equipment and operations that may have permitting requirements, but should not be viewed as exclusive: power screens, conveyors, diesel engines, and/or crushers; portable generators and equipment with engines that are 50 hp or greater; internal combustion engines; unconfined abrasive blasting operations; concrete batch plants; rock and pavement crushing; tub grinders; and, trommel screens. AQ-5: Standard Mitigation Measures for Construction Equipment. The standard mitigation measures for reducing nitrogen oxides (NOx), reactive organic gases (ROG), and diesel particulate matter (DPM) emissions from construction equipment are listed below: a.Maintain all construction equipment in proper tune according to manufacturer’s specifications; b. Fuel all off-road and portable diesel-powered equipment with ARB certified motor vehicle diesel fuel (non-taxed version suitable for use off-road); c. Use diesel construction equipment meeting ARB's Tier 2 certified engines or cleaner off-road heavy-duty diesel engines, and comply with the State Off-Road Regulation; Packet Page 208 Item 16 Resolution No. ________(2020 Series) Page 4 R _____ d. Use on-road heavy-duty trucks that meet the ARB’s 2007 or cleaner certification standard for on-road heavy-duty diesel engines, and comply with the State On-Road Regulation; e. Construction or trucking companies with fleets that that do not have engines in their fleet that meet the engine standards identified in the above two measures (e.g. captive or NOx exempt area fleets) may be eligible by proving alternative compliance; f. All on and off-road diesel equipment shall not idle for more than 5 minutes. Signs shall be posted in the designated queuing areas and or job sites to remind drivers and operators of the 5-minute idling limit; g. Diesel idling within 1,000 feet of sensitive receptors is not permitted; h. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors; i. Electrify equipment when feasible; j. Substitute gasoline-powered in place of diesel-powered equipment, where feasible; and, k. Use alternatively fueled construction equipment on-site where feasible, such as compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel. AQ-6: Best Available Control Technology (BACT) for Construction Equipment. If the estimated ozone precursor emissions from the actual fleet for a given construction phase are expected to exceed the APCD threshold of significance after the standard mitigation measures are factored into the estimation, then BACT needs to be implemented to further reduce these impacts. The BACT measures can include: a. Further reducing emissions by expanding use of Tier 3 and Tier 4 off-road and 2010 on-road compliant engines; b. Repowering equipment with the cleanest engines available; and c. Installing California Verified Diesel Emission Control Strategies. These strategies are listed at: http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm AQ-7: Fugitive Dust Mitigation Measures. Projects with grading areas that are less than 4-acres and that are not within 1,000 feet of any sensitive receptor shall implement the following mitigation measures to minimize nuisance impacts and to significantly reduce fugitive dust emissions: a. Reduce the amount of the disturbed area where possible; b. Use of water trucks or sprinkler systems, in sufficient quantities to prevent airborne dust from leaving the site and from exceeding the APCD’s limit of 20% opacity for greater than 3 minutes in any 60-minute period. Increased watering frequency would be required whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water should be used whenever possible. Please note that during drought conditions, water use may be a concern and the contractor or builder shall consider the use of an APCD- approved dust suppressant where feasible to reduce the amount of water used for dust control; c. All dirt stock-pile areas should be sprayed daily as needed; d. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible, and building pads should be laid as soon as possible after grading unless seeding or soil binders are used; Packet Page 209 Item 16 Resolution No. ________(2020 Series) Page 5 R _____ e. All of these fugitive dust mitigation measures shall be shown on grading and building plans; and f. The contractor or builder shall designate a person or persons to monitor the fugitive dust emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below 20% opacity, and to prevent transport of dust offsite. Their duties shall include holidays and weekend periods when work may not be in progress. Air Quality Monitoring Program: These conditions shall be noted on all project grading and building plans. The applicant will also be required to comply with existing regulations and secure necessary permits from the Air Pollution Control District (APCD) before the onset of grading or demolition activities including, but not limited to additional dust control measures, and evaluation for Naturally Occurring and Material Containing Asbestos. The applicant shall present evidence of a plan for complying with these requirements prior to issuance of a grading or building permit from the City. The applicant shall provide the City with the name and telephone number of the person responsible for ensuring compliance with these requirements. The Building Inspector and Community Development and Public Works Inspectors shall conduct field monitoring. Biological Resources BR-1 Prior to installation of the recycled water main on the Broad Street bridge, the project proponent shall prepare and implement a Biological Mitigation Plan that identifies construction related staging and maintenance areas and includes construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland and avoid accidental discharge of fuels and/or materials into the creek. Such BMPs shall include (but not be limited to) the following: a. Prior to construction activities associated with the installation of a recycled water line on the Broad Street bridge, the project proponent shall retain a qualified biologist to ensure implementation of required biological mitigation measures. b. The Plan shall include the use of debris netting to avoid accidental spill of materials into the creek corridor. The debris netting shall be installed prior to installation of the recycled water line on the bridge and shall not be removed until the installation of the recycled water line is complete. c. Prior to construction activities, the project area shall be clearly flagged or fenced so that the contractor is aware of the limits of allowable site access, which shall not include areas within the bed or bank of the creek. d. Prior to the commencement of construction activities, the qualified biologist shall prepare and deliver a worker orientation and training program for all construction staff. This program shall include information on the protection of riparian habitat, special-status aquatic species, and avian species. The training shall also include any applicable regulatory policies and provisions regarding species protection and minimization measures to be implemented. Packet Page 210 Item 16 Resolution No. ________(2020 Series) Page 6 R _____ e. A biological monitor shall be present during the recycled water line installation on the bridge and shall have the authority to stop or redirect work as needed to protect biological resources. Prior to initiation of daily construction activities, and periodically during installation of the recycled water line on the bridge, the biological monitor shall survey the creek within 100 feet of the bridge. In the event any special-status species is present, construction activities shall cease until the biological monitor has determined that the special-status species is no longer present within 100 feet of the project site. If nesting birds are present within 500 feet of the project site, no operation of heavy equipment shall occur until the birds have fledged and left the nest. f. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. g. No storage or fueling of equipment shall occur within 100 feet of the edge of riparian vegetation. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). h. All trash and construction debris shall be picked up and properly disposed at the end of each day. Cultural Resources and Tribal Cultural Resources CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or paleontological resources are unearthed or discovered during any construction activities, the following standards apply: a. Construction activities shall cease, and the Environmental Coordinator and Planning Department shall be notified so that the extent and location of discovered materials may be recorded by a qualified archaeologist, and disposition of artifacts may be accomplished in accordance with state and federal law, and in consultation with local Native American tribal organizations. b. In the event archaeological resources are found to include human remains, or in any other case where human remains are discovered during construction, the County Coroner is to be notified in addition to the Planning Department and Environmental Coordinator so that proper disposition may be accomplished. Cultural Resources and Tribal Cultural Resources Monitoring Program: Requirements for cultural resource mitigation, in the event of unforeseen encounter of materials during the potential relocation of the wastewater treatment facility, shall be clearly noted on all plans for project grading and construction. Compliance will be verified by the Community Development Director. SECTION 2.Findings. Based upon all the evidence, the City Council makes the following findings: Packet Page 211 Item 16 Resolution No. ________(2020 Series) Page 7 R _____ 1. The project area is identified in the Airport Area Specific Plan as a future annexation area. The proposed annexation is consistent with the Airport Area Specific Plan, which was determined to be consistent with the San Luis Obispo County Airport Land Use Plan. 2. The proposed annexation is consistent with the General Plan, including Policies 1.13.3 (Annexation Purpose and Timing) and 1.13.5 (Annexation in Airport Area) because the proposed project satisfies all the prerequisites identified under 1.13.5 and pre-zoning was established upon adoption of the Airport Area Specific Plan, which is a prerequisite for allowing development on the site under the City’s General Plan. 3.The East Airport Annexation Area is within the City’s Sphere of Influence as defined by LAFCO, which is an area designated for eventual annexation provided that City services can be provided, and that annexation is otherwise consistent with LAFCO policies. 4. The Pre-Annexation Agreement and Plan for Services provides a framework for providing the necessary City services to adequately serve the annexation area. SECTION 3. Action. The City Council does hereby authorize the following actions: 1. Approve and authorize the Mayor to execute the Pre-Annexation Agreement for the Annexation of the East Airport Area as recommended by the Planning Commission (Attachment B, also Exhibit A to Resolution), 2. Approve the filing of an application and request for San Luis Obispo Local Agency Formation Commission (LAFCO) to initiate proceedings for annexation of the East Airport Area (Attachments C and D), 3. Adopt the Plan For Services for the East Airport Annexation Area (Attachment E), 4. Direct the Community Development Director to process the application, 5. Authorize the City Manager to execute any documents in a form approved by the City Attorney related to the annexation of the subject lands to the City, 6. Authorize the City Manager to initiate tax negotiations with the County of San Luis Obispo, 7. Adopt the associated IS-MND (Attachment F) for the annexation, which tiers off the certified Final Environmental Impact Report for the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans (SCH# 2000051062), and Packet Page 212 Item 16 Resolution No. ________(2020 Series) Page 8 R _____ Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 _________________, 2020. ______________________________________ Teresa Purrington City Clerk Packet Page 213 Item 16 Proposed East Airport Park Association & Senn/ GlickAnnexation AreaZoning0 300 600 BRO A D ST R E ET S.R. 227Annexation AreaCity of San Luis Obispo CaliforniaZoning MapEast Airport Park Association (EAPA)Senn/Glick AreaSource: SLO City Parcel ViewerA BCNTSRQ POYMLKJIHGFEDBBCCAAZWUVDDXEEFFGGKENDALL ROADPROSPECT STREETMOR A BIT O PL A C E FARMHOUSE LANEALLENE W A Y$WWDFKPHQW&Packet Page 214Item 16 East Airport Commerce Park – Senn/Glick – Annexation Plan for Services January 2020 &RQWHQWV /DZ(QIRUFHPHQW )LUH3URWHFWLRQ,QFOXGLQJ3DUDPHGLFDQG$PEXODQFH 3DUNVDQG5HFUHDWLRQ 3XEOLF)DFLOLWLHV0DLQWHQDQFH 6WUHHWV0DLQWHQDQFHDQG,PSURYHPHQWV 3XEOLF7UDQVLW 6ROLG:DVWHDQG5HF\FOLQJ 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7KHSURSRVHGDQQH[DWLRQDUHDLVFXUUHQWO\GHYHORSHGZLWKFRPPHUFLDOVWUXFWXUHVH[LVWLQJ FRPPHUFLDOXVHVDQGQRQHZGHYHORSPHQWLVSURSRVHGDVSDUWRIWKLVDSSOLFDWLRQ$IIRUGDEOH KRXVLQJZRXOGEHUHTXLUHGLIQHZGHYHORSPHQWLVSURSRVHGLQWKHIXWXUH3HUWKH&LW\¶V ,QFOXVLRQDU\+RXVLQJ5HTXLUHPHQW=RQLQJ5HJXODWLRQV&KDSWHUDQ\QHZFRPPHUFLDO SURMHFWVWKDWLQFOXGHRYHUVTXDUHIHHWRIIORRUDUHDPXVWSURYLGHDIIRUGDEOHKRXVLQJRUSD\ LQOLHXIHHV7KHUHTXLUHPHQWLVWZRDIIRUGDEOHGZHOOLQJXQLWVSHUDFUHRIODQGRUSD\PHQWRIDQ LQOLHXIHHHTXDOWRRIEXLOGLQJYDOXDWLRQ7KH&LW\XVHVWKHIHHVFROOHFWHGIRUDIIRUGDEOH KRXVLQJSURMHFWVWKDWPHHWHOLJLELOLW\FULWHULDDVVSHFLILHGE\&RXQFLOUHVROXWLRQ ATTACHMENT D Packet Page 223 Item 16 ATTACHMENT E O _____ ORDINANCE NO. _________ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING AMENDMENTS TO CHAPTER 17.94 OF TITLE 17 (ZONING ORDINANCE) ESTABLISHING PROVISIONS FOR THE CONTINUANCE OF NON-CONFORMING USES EXISTING AT THE TIME OF ANNEXATION WITHIN THE EAST AIRPORT AREA (PL-ANNX-2030-2018, EID-0006-2020) WHEREAS, on January 22, 2020 the Planning Commission conducted a public hearing to prepare a recommendation to the City Council for the annexation of approximately 58.31 acres of lands to the City commonly referred to as the East Airport Annexation Area (East Airport); and WHERAS,the Planning Commission is recommending the City Council adopt a Resolution to proceed with the annexation, as well as a series of additional steps including establishing a Pre- Annexation Agreement, Land Use and Zoning Designations, a Plan For Services for the annexation area and the adoption of an environmental determination as prescribed in Planning Commission Resolution No. PC-1003-2020 (2020 Series); and WHEREAS,the annexation of the East Airport area would include a zoning designation for “Service - Commercial - Specific Plan (C-S-SP)” for the East Airport Area; and WHEREAS,the Pre-Annexation Agreement for the East Airport Area provides that for existing uses (established under San Luis Obispo County regulations at the time of annexation) that may otherwise be considered “non-conforming” uses under the City’s “Service-Commercial – Specific Plan” zoning district for the annexation area, a process be established that allows flexibility and discretion in continuing to maintain, repair and replace said uses; and WHEREAS, on March 17, 2020 the City Council conducted a duly noticed Public Hearing to consider testimony and input on the proposed annexation, needed public and private infrastructure improvements, development impact fees and charges to be paid to the City, environmental considerations for the annexation, review of the timing and implementation of said fees and improvements, and the issue of non-conforming land uses; and WHEREAS,environmental analysis of the proposed annexation has been guided by previous work in the form of the Airport Area and Margarita Area Specific Plans Final Environmental Impact Report (FEIR)(2005), FEIR Addendum for the Airport Area and Margarita Area Specific Plans (2015), and the City’s General Plan Land Use and Circulation Elements (LUCE) FEIR (2014); and WHEREAS,an Initial Study of environmental impact was prepared for the proposed annexation, which tiers from the certified EIRs noted above, and said Initial Study analyzes and documents whether there have been changed circumstances since those referenced EIRs were completed, analyzesconsistencyof the annexationwith the General Plan and Airport Area Specific Plan, and identifies mitigation measures that would be required to mitigate potentially significant impacts resulting from the annexation process and the construction of needed infrastructure (new or rehabilitation) to support City services to the areas; and Packet Page 224 Item 16 Ordinance No. ______ (2020 Series) Page 2 O _____ WHEREAS, the conclusion of the Initial Study of environmental impact is that by incorporating the needed infrastructure features of the adopted Airport Area Specific Plan and the proposed Plan For Services, in addition to and as a direct result of the analysis of the noted EIRs, and implementing noted mitigation measures, any significant effects of the annexation and provision of infrastructure services to the area would result in a less than significant effect on the environment. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1.CEQA Findings. Based upon all the evidence, the City Council adopts the following California Environmental Quality Act (CEQA) findings in support of the project: a) The proposed project is consistent with the requirements of the 2005 certified Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans FEIR (SCH# 2000051062), and this action incorporates those FEIR mitigation measures as detailed in City Council Resolution ____ (Series 2020). b) The proposed project is consistent with the requirements of the certified 2015 FEIR Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans Final Environmental Impact Report (SCH#2000051062), and this action incorporates those FEIR mitigation measures as detailed in City Council Resolution ____ (Series 2020). c) A supplemental, tiered, Initial Study has been prepared for the project, which addresses potential environmental impacts resulting from the proposed project, and the Community Development Director has recommended that the results of that additional analysis be incorporated into an Initial Study Mitigated Negative Declaration (IS- MND) of environmental impacts, and recommends adoption of identified mitigation measures, as detailed in City Council Resolution ____ (Series 2020). d) All potentially significant effects were adequately analyzed in the referenced FEIRs and IS-MND for the East Airport Annexation project. SECTION 2.Zoning Ordinance and Municipal Code Amendments Concerning “Non- Conforming Uses” as a result of the East Airport Annexation.The City’s Zoning Regulations, Municipal Code Section 17.94.020, are hereby amended to read as follows, concerning the continuation of non-conforming uses within the East Airport Annexation area of the Airport Area Specific Plan: Addition of Subsection D. “D. For uses located in the East Airport Annexation Area of the Airport Area Specific Plan, “Office-Government”uses in existence at the time of annexation will not be subject to the provisions of Sections 17.94.020.B.1 and the Community Development Director may permit a similar non- conforming “Office -Government” to be established even if the prior non- conforming use has ceased for more than 12 months subject to the process and findings set forth in Section 17.94.020.B.2” Packet Page 225 Item 16 Ordinance No. ______ (2020 Series) Page 3 O _____ SECTION 3. 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 and 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 4.Implementation. A summary of this Ordinance, together with the names of City 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 the City. This ordinance shall go into effect at the expiration of thirty (30) days after its passage. INTRODUCED on the 17th day of March 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _____ day of _______, 2020, on the following roll call 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 ____________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 226 Item 16 City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo Minutes - Draft Planning Commission Minutes - Draft Planning Commission Regular Meeting Wednesday, January 22, 2020 CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on Wednesday, January 22, 2020 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Chair Wulkan. ROLL CALL Present:Commissioners Robert Jorgensen, Steve Kahn, John McKenzie, Nicholas Quincey, Charles Stevenson, Vice-Chair Hemalata Dandekar and Chair Mike Wulkan Absent:None Staff:Community Development Director Michael Codron, Principal Planner Tyler Corey, Assistant City Attorney Charles Bell, and Deputy City Clerk Kevin Christian Pledge of Allegiance PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. 1. CONSENT AGENDA –CONSIDERATION OF MINUTES ACTION:MOTION BY COMMISSIONER STEVENSON, SECOND BY COMMISSIONER MCKENZIE, CARRIED 7-0-0 to approve the Planning Commission Minutes of December 11, 2019. Item 1 Packet Page 7Packet Page 227 Item 16 Planning Commission Meeting Minutes January 22, 2020 Page 2 of 3 Prior to introduction of Public Hearing Agenda Item 2, Commissioner Quincey recused himself from the item and left the Chamber. PUBLIC HEARINGS 2. Project Address: Multiple parcels immediately east of Broad Street between Farmhouse Lane and Kendall Road, including Allene Way, Morabito Place and Prospect Streets; Case #: ANNX 2030-2018; Pre-zoning pursuant to the Airport Area Specific Plan: Service Commercial; East Airport Commerce Park / Senn-Glick (representative Carol Florence) owner/applicant. Review of the proposed annexation of approximately 59 acres of property at Farmhouse Lane (East Airport Area) and associated infrastructure improvements; this action includes consideration of an Initial Study/Mitigated Negative Declaration tiered from the Final Program Environmental Impact Report for the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans (SCH#2000051062). Recommendations will be forwarded to the City Council for consideration of the annexation and environmental document. Special Projects Manager Teresa McClish and Contract Planner David Watson presented the staff report and responded to Commission inquiries. Applicant representatives, Carol Florence, Principal Planner with Oasis Associates, and Rob Miller, President Fiero Lane Water Company,provided a brief history of planning and development in the proposed annexation area,commented on the current water supply infrastructure,and addressed questions raised by the Commission. Chair Wulkan opened the public hearing. Public Comments None. Chair Wulkan closed the public hearing. ACTION:MOTION BY COMMISSIONER KAHN, SECOND BY VICE CHAIR DANDEKAR, CARRIED 6-0-1 (COMMISSIONER QUINCEY RECUSED) to adopt a resolution entitled: “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL ADOPT A MITIGATED NEGATIVE DECLARATION, INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE CONCERNING NON- CONFORMING USES, AND APPROVE THE ANNEXATION OF THE EAST AIRPORT ANNEXATION AREA PROPERTIES (EAST AIRPORT COMMERCE PARK ASSOCIATION, SENN-GLICK) TO THE CITY OF SAN LUIS OBISPO (PL-ANNX-2030- 2018, EID-0006-2020).” By Consensus, the Commission directed staff to include assumptions concerning build out estimates and related infrastructure impactsin their future staff reportto City Councilregardingthe annexation. Item 1 Packet Page 8Packet Page 228 Item 16 Planning Commission Meeting Minutes January 22, 2020 Page 3 of 3 COMMENT AND DISCUSSION 3.Agenda Forecast –Principal Planner Tyler Corey provided an update of upcoming projects. ADJOURNMENT The meeting was adjourned at 7:32 p.m. The next Regular Planning Commission meeting is scheduled for Wednesday, February 12, 2020, at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. 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Item 1 Packet Page 10Packet Page 238 Item 16 Department Name: Community Development Cost Center:4001 For Agenda of:March 17, 2020 Placement:Business Estimated Time:90 Minutes FROM: Michael Codron, Community Development Director Prepared By:Brian Leveille, Senior Planner SUBJECT:MEMORANDUM OF UNDERSTANDING (MOU) WITH CAL POLY REGARDING IMPLEMENTATION OF MITIGATION MEASURES IDENTIFIED IN THE CAL POLY MASTER PLAN ENVIRONMENTAL IMPACT REPORT (EIR). RECOMMENDATION Authorize the City Manager to execute the proposed MOU (Attachment A) with Cal Poly and direct staff to continue to engage in the Cal Poly Master Plan process to ensure that impacts on City services and infrastructure associated with build-out of the Master Plan are properly identified and mitigated. REPORT-IN-BRIEF On December 19, 2019, Cal Poly published the Draft EIR for its 2035 Master Plan. The 45-day public review period ended on February 3, 2020, and the City submitted comments identifying its concerns with the potential environmental effects associated with build-out of the Master Plan (Attachment B). The City provides a wide range of services to the campus, including emergency response, water and wastewater treatment, and transit to name a few. Therefore, City review of the Master Plan and Draft EIR is important to ensure that service impacts associated with development of the Master Plan are identified and that agreements are developed as may be needed to address changes in the scope or level of service provided to campus. While developing the Draft EIR for the Master Plan, Cal Poly engaged with City staff to discuss key issues where the City would likely play some role in mitigating identified impacts. For example, Cal Poly lacks sufficient potable and non-potable water supply to complete build-out of the Master Plan. A Memorandum of Understanding (MOU) is now recommended to address mitigation measures in the Draft EIR associated with Water and Wastewater, Transportation, and Housing. Through the normal EIR review process, the City has provided comments on other issue areas such as biological resources, air quality and greenhouse gas emissions, and public services. City staff is seeking direction from the City Council to continue to engage with Cal Poly on all of the issues related to development under the Master Plan to ensure that impacts to the City are appropriately addressed. Packet Page 239 Item 17 DISCUSSION Background On December 19, 2019, Cal Poly published the Draft EIR for Cal Poly’s 2035 Master Plan. The 45-day public review period ended on February 3, 2020, and the City submitted comments identifying its concerns with the potential environmental effects associated with build-out of the Master Plan (Attachment B). The City’s comments were based on direction previously provided by the City Council in the form of “Guiding Principles” (see Attachment C, Council Resolution 10676, 2015 Series). The City has been engaged in the effort of working with Cal Poly on the Master Plan, informed by the Guiding Principles since 2015. The Draft EIR published this past December is the second Draft EIR developed for the Master Plan. The first Draft EIR was published, but the comments provided by the City, the public, and other agencies never received a response. Instead, Cal Poly took the input received, modified its project description to avoid certain environmental impacts, and published a new Draft EIR based on an updated project description. Although not in the City “limits”, the City of San Luis Obispo and Cal Poly are intertwined in social, economic, environmental, and shared infrastructure and services. The City provides a wide range of services to the campus, including emergency response, water and wastewater treatment, and transit to name a few. For its part, Cal Poly is an important economic partner for the City –it is one of the largest employers in the County, generating significant economic activity and benefit for City residents and businesses alike. As Cal Poly is planning to increase enrollment to 25,000 students from the 2019 enrollment figure of 21,242, it must work in concert with the City to ensure the health and safety, and mobility, of its student body and its existing and future staff and faculty. While developing the Draft EIR for the Master Plan, Cal Poly engaged with City staff to discuss key issues where City cooperation would have a role in mitigating identified impacts. Meetings between City staff and Cal Poly staff have focused on the following topics: 1. Water and Wastewater 2. Transportation 3. Housing and Population 4. Public Safety 5. Public Facilities, including Parks and Recreation Purpose of Proposed Memorandum of Understanding (MOU) MOU’s are intended to be an expression of a working relationship between two or more parties. The proposed MOU is not a legally binding document. In short, the proposed MOU expresses both organization’s good faith understanding of how they can work together to accomplish certain mitigation measures identified in the areas of Water and Wastewater, and Transportation. To that end, the MOU contemplates a variety of future agreements and collaborations, which will be necessary to the implementation of the Master Plan, as envisioned. All of these future agreements and activities must be authorized by the City Council in the future; either directly during a public hearing, or through the approval of departmental work programs. In no way does Packet Page 240 Item 17 the MOU bind this or future City Council members to any particular decision as it relates to future negotiated agreements with Cal Poly; it simply formally acknowledges the need for such future efforts. Why is the MOU Limited to Water and Wastewater, Transportation, and Housing? Ultimately, it has been Cal Poly’s assessment that City participation in the implementation of mitigation measures is only required in the areas of Water and Wastewater, and Transportation. Coordination in these areas would facilitate on campus housing production in the future. In discussions with Cal Poly, City staff conveyed the City’s desire to reach agreement to accomplish the following, associated with increased enrollment: 1. Linking enrollment growth to the provision of housing on campus so that implementation of the Master Plan does not contribute to the scarcity of housing opportunities in the City, which drive up housing costs for everyone. 2. Fair share contributions to General Government, Public Safety, and Parks and Recreation facilities that are impacted by increased population. Linking Enrollment Growth and On-Campus Housing Cal Poly has rebuffed attempts to come to agreement on the concept of linking enrollment growth to the provision of housing on campus. In general, two reasons are provided for this. First, that Cal Poly has been making steady progress in its efforts to house all first and second- year students. The following chart is provided to illustrate this trend. Second, Cal Poly and the State University system are unwilling to set a precedent that new housing has to be provided for new students. It should be noted that one of the near-term projects in the Master Plan is a major new student housing project. The construction of up to 2,000 beds is anticipated in the North Campus area adjacent to Brizzolara Creek. The project description for the Master Plan EIR indicates that these beds could be available as soon as 2022. This one project would increase the percentage of all students living on campus from 35% to 44% and would eclipse projected enrollment growth over the same timeframe. As a result, staff’s efforts have been focused on identifying constraints and providing constructive feedback to Cal Poly staff regarding issues that could prevent plan implementation. Packet Page 241 Item 17 Source: Cal Poly University Housing Fair Share Contributions for General Government, Public Safety, and Parks and Recreation Facilities In 2018 the City Council adopted a new Capital Facilities Financing Plan that identified appropriate fees for General Government, Public Safety, and Parks and Recreation facilities that would be assessed on new development. This “nexus study” is compliant with State law (AB 1600), which gives jurisdictions the ability to levy fees on new development that represent the development’s fair share of the costs needed to provide identified services. On several occasions, City staff has discussed this issue with Cal Poly and provided its EIR consultants with a copy of the nexus study. Staff believes that enrollment growth can cause an increase in population in the City, which has costs. In 2017 when there was a spike in enrollment at Cal Poly, the City was able to quantify and document those costs (Attachment B, 2017 letter from Katie Lichtig to Jeffrey Armstrong, dated 9/11/2017). Although Cal Poly is not required to pay into the City’s impact fee programs, the program provides a method to mitigate the impacts of increased population on City facilities. However, this is another area where Cal Poly disagrees that there is an impact on City facilities that requires mitigation. Ultimately, the Master Plan provides for a decrease in the number of students living off campus from 14,113 in 2020 to 9,988 students in 2035. The City staff’s concern is that there is nothing in the Master Plan that links increased enrollment to the provision of housing on campus for students or faculty, or commits Cal Poly to accommodate increased enrollment to mitigate against anticipated impacts in the event that enrollment growth does, in fact, outpace on campus housing production. Moreover, housing production alone does not address other potential impacts in the City of on campus population growth. Therefore, the potential is high for the City to experience increased demand for its facilities along with associated costs. Packet Page 242 Item 17 Highlights of the Proposed MOU Terms Recitals in the Memorandum of Understanding are provided for context and in recognition of the cooperative relationship that exists between the campus and the City on many issue fronts. City Council direction to staff is to work with Cal Poly to ensure that the Master Plan EIR explores the impacts of growth on campus on City services and facilities. Notably, the ability of the City to come to agreement on MOU terms for two issue areas does not mean that the City is otherwise in agreement with all provisions of the Master Plan and the impact analysis contained in the Draft EIR. Significantly, staff will continue to follow up on and work with Cal Poly on all of the issues commented on (Attachment B). It is important to note that the City’s ability to effectively implement MOU terms is dependent on Cal Poly’s response to the City’s EIR comment letter and how issues raised are addressed in the Final EIR and Final 2035 Cal Poly Master Plan. Cal Poly staff has indicated that the Master Plan and Final EIR will be presented to the California State University, Board of Trustees, at their May 2020 meeting.The City will be closely following that process and staff intends to attend the Trustees meeting and will be prepared to address any outstanding issues concurrently through that process. Water and Wastewater Impacts The City provides water distribution and treatment and wastewater collection and treatment services to the Cal Poly campus by agreement (Attachment D). The following impacts are identified in the Draft EIR and will require Cal Poly to reach agreement with the City to implement appropriate mitigation measures. Source: Master Plan Draft EIR Page 3.14-16 Packet Page 243 Item 17 Source: Master Plan Draft EIR Page 3.14-19 Terms Proposed and Subsequent Agreements Necessary to Support Implementation of Related Water and Wastewater Mitigation Measures a)Develop mechanisms to confirm operational resiliency of Cal Poly’s water supply. b) Cal Poly to secure additional, temporary non-potable water supply and wastewater capacity, if needed, to support the development of on-campus housing.1 c) Reach agreement on Cal Poly fair-share financial contribution to support required upgrades of City’s water treatment plant and distribution system. d) Reach agreement on Cal Poly fair-share financial contribution towards required upgrades of City’s water resource recovery facility and wastewater collection system. e) Cal Poly to regularly inform City of progress towards reducing municipal sewer inflow and infiltration. f) Establish protocol and objectives for annual partnership meeting to address items such as anticipated facility upgrades and related fair share contributions, inflow and infiltration reduction projects, smart meters installation to track water supply use/flow rates, adaptive management of water supply storage and other related water and waste water matters. Transportation Impacts The City provides transit services to the campus through an existing contract. The City’s ability to help address the following environmental impacts relates directly to the success of current and future negotiations between the City and Cal Poly to identify and provide appropriate levels of transit service on campus to achieve shared goals. 1 The provision of a temporary non=potable water supply would require City Council approval of a General Plan amendment. Temporary non-potable water from the City could offset Cal Poly’s current use of its Whale Rock water supply used for agriculture irrigation. However, as it would only be provided for a short-term, this would not provide the permanent water source needed for planned enrollment growth and on-campus housing under the Master Plan. Cal Poly would need to acquire a permanent water source to meet this demand. Packet Page 244 Item 17 Cal Poly Draft EIR Page 3.13-12 Cal Poly Draft EIR Page 3.13-14 Cal Poly Draft EIR Page 3.13-16 Cal Poly Draft EIR Page 3.13-18 Terms Proposed and Subsequent Agreements Necessary to Support Implementation of Related Transportation Mitigation Measures a) Ensure the City and regional stakeholder agencies (County, RTA, SLOCOG, APCD) are informed and consulted as Cal Poly develops and implements its Transportation Demand Management Program (TDM). b) Scale and optimize transit services available to the Cal Poly community in accordance with changing population and utilization, with the objective of reducing Vehicle Miles Traveled (VMT). c) Consolidate and/or coordinate active transportation projects to optimize results and avoid conflicts between vehicles, bicycles and pedestrians. d) Collaborate on initiatives to improve mobility safety off campus. Packet Page 245 Item 17 e)Develop procedures for determination of Cal Poly’s fair-share financial contributions towards required upgrades of City’s transportation infrastructure. f) Establish protocol and objectives for annual partnership meeting to address transportation planning, TDM program evaluation issues, and potential transportation enhancement projects, including trip monitoring, ongoing evaluation of VMT reduction, transit service enhancements, and programs/projects to enhance active transportation and mobility safety. Housing Impacts (Population and Housing) The Draft EIR disclosed that it is likely enrollment increases will occur before new housing is available on campus. This additional housing demand will drive down vacancy rates and potentially increase the cost of housing in the City, however, this is not identified as an environmental impact of the Master Plan. Throughout the DEIR impacts to other issue areas are evaluated as less than significant since it is assumed additional housing on campus will have mitigating effects in other issue areas - like Transportation and demand for public services and facilities. As noted in the City letter to Cal Poly (Attachment B), staff is concerned that there will be challenges for Cal Poly to make housing available in phase with enrollment increases due to a variety of factors including needed additional environmental studies, resource agency permitting, and additional water and wastewater capacity requirements. Although MOU terms for Housing are not specific with respect to mitigation measures in the Draft EIR, the terms do highlight Cal Poly and City agreement to remain engaged and work towards the expeditious development of new on-campus housing supply. Terms Proposed and Subsequent Agreements Necessary to avoid impacts to City Housing stock and facilities a) Continued active work by Cal Poly to construct the next student housing project which will provide 1600-2000 new student beds. b) Cal Poly will regularly inform the City of progress towards its construction of on campus housing and provide information on capital projects, occupancy rates, and enrollment targets. c) Establish protocol and objectives for partnership meetings to address issues related to University and City growth and best accomplish transportation, public service and other resource planning. Other Environmental Impacts of Concern As previously discussed, the City submitted a letter (Attachment B) detailing a variety of concerns with the scope, analysis, and conclusions made in the Master Plan Draft EIR. The following issue areas are covered in the letter. 1.Aesthetics –The Draft EIR identifies significant and unavoidable impacts as it relates to development of the Grand/Slack site for faculty/staff housing. The City recommends that Cal Poly incorporate standards for appropriate setbacks and height reductions on the edge of campus to help address this issue. Packet Page 246 Item 17 Air Quality, Energy Consumption and Greenhouse Gas (GHG) Emissions –The City commends Cal Poly’s commitment to using 100% on-site generated renewable energy to support its growth. The renewable energy goal is identified as a requirement in the GHG Analysis, Chapter 3.8, however, the associated mitigation measures do not require all building to be powered by 100% renewable energy. In addition, the EIR does not evaluate any large-scale energy projects that may be needed to actually achieve the goal. 2.Biological Resources –The City expressed concern about the scope of the biological resource evaluation, particularly as it relates to the North Campus housing site, planned for a near-term student housing project. The lack of detailed analysis indicates that plans for delivering new student housing on campus by 2022 will be difficult to achieve, particularly if a habitat conservation plan is required to secure resource agency permits. 3.Hydrology and Water Quality –The Draft EIR does not evaluate impacts that could occur due to flooding. The City and County both use the same standards found in the San Luis Obispo Waterways Management Plan and Drainage Design Manual. If the Master Plan identified compliance with these standards it would address City concerns that future development on campus will be designed to accommodate flood waters appropriately and not create downstream impacts. 4.Noise –Impacts on City residents related to noise from the Spanos Stadium Expansion are not evaluated for considered in the Draft EIR. In addition, there is no analysis of noise generated by construction activities, including construction traffic. It is important that Cal Poly engage with the City to ensure that noise impacts are addressed and having appropriate policies in the Master Plan and mitigation measures identified in the Final EIR for noise is strongly encouraged by the City. 5. Public Services –The City highlights its concern about the impacts of growth on campus to public facilities. As previously discussed, the City’s Capital Facilities Fee Program nexus study identifies the incremental cost of new residents on the public facilities. The Draft EIR lacks a complete evaluation of these impacts on facilities. It should be noted that public safety services are covered by existing agreements and contracts that do adequately address the cost of services for emergency response, fire suppression, and law enforcement. Previous Council or Advisory Body Action The City Council has conducted the following meetings with associated actions as it relates to the Cal Poly 2035 Master Plan: 1. November 17, 2015 –City Council adopts Resolution 10676 (2015 Series) with guiding principles for engagement in the Master Plan process and authorizes the Mayor to send a letter to Cal Poly with associated information about City policies and guidance. 2. March 5, 2019 –City Council reviewed its policy for short-term water supply alternatives for users outside of the City and directed staff to return with a General Plan amendment to clarify that outside users may receive non-potable water and recycled water. A proposed General Plan amendment is necessary for the City to have an agreement with Cal Poly to provide it with a short-term, non-potable water supply. (Attachment D) Packet Page 247 Item 17 Policy Context Council Resolution 10676 (2015 Series) identifies the specific General Plan policies that support City engagement in the Master Plan process across a wide variety of policy areas, including Land Use, Circulation, Housing and Neighborhood Wellness, and Safety. Public Engagement City staff has corresponded with members of the public and regional agency staff on the matter of the Cal Poly Master Plan Draft EIR. Staff has provided notification to interested parties of the City Council meeting for this item. CONCURRENCE The recommendation was developed with concurrence from Utilities, Public Works, Police, Fire, Parks and Recreation, and Administration. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report by general rule, because the action does not constitute a “Project” (CEQA Guidelines Section 15378). The proposed MOU is a non-binding document that describes issue areas that the City and Cal Poly agree to work on for the purpose of implementing mitigation measures identified in the Cal Poly 2035 Master Plan EIR. Any future projects carried out under the MOU will need to be approved along with an environmental determination, however, assumptions made at this time about future impacts would be speculative. Packet Page 248 Item 17 FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Water and Sewer Funds *** Total *Note: Cal Poly pays the City for water and wastewater services by agreement, most recently updated in 2013. An update to the existing rate agreement is planned in 2020 to ensure the City collects adequate revenue to the City’s Water and Sewer Funds, including fair share contributions to infrastructure projects. Increased enrollment on campus includes costs for the City. The cost of increased, unplanned enrollment was evaluated in 2017 when Cal Poly experienced a spike in enrollment that resulted in impacts to the transit system, emergency services, parking, code enforcement, housing (Attachment B, Attachment C, Letter Dated 9/11/2017). City staff’s analysis is that Cal Poly can and should make fair-share contributions to the costs of City services and infrastructure needed to serve it. The Draft EIR and Master Plan fail to take these costs into account. If costs to the City are not adequately addressed, the fiscal impact could be significant, potentially resulting in the delayed implementation of important infrastructure projects or unmitigated safety risks. ALTERNATIVES 1. Continue Consideration of Draft MOU –The City Council could continue consideration of the draft MOU for water and wastewater, and transportation items. Council should provide staff with direction on changes or additional information needed to make a decision on this item. 2. Do Not Authorize the MOU –The City Council could direct staff not to enter into the MOU at this time. Direction should be provided if there are changes to the document that would be sufficient to gain the support of a majority of Council Members. Attachments: a - Draft City-Cal Poly MOU b - Letter on Cal Poly Master Plan Update DEIR with attachments c - Council Resolution 10676 (2015 Series) d - Council Reading File - 03-05-2019 Item 14 Cal Poly Regional Water Supply Alternatives Packet Page 249 Item 17 DRAFT 4.0 MEMORANDUM OF UNDERSTANDING BETWEEN CALIFORNIA POLYTECHNIC STATE UNIVERSITY AND THE CITY OF SAN LUIS OBISPO This Memorandum of Understanding (“MOU”) is by and between California Polytechnic State University (“Cal Poly”) and the City of San Luis Obispo (“City”). I. Background Cal Poly and the City of San Luis Obispo have a long and successful history of working together to achieve shared objectives and solve problems. Evidence of this can be found in various agreements including those addressing transit bus service, fire protection, water and wastewater, as well as cooperative policing. Numerous other points of collaboration large and small are indicative of a strong and growing “town-gown” relationship. In 2016, the City and Cal Poly received a prestigious award for the shared effort of creating the San Luis Obispo Neighborhood Wellness/Community Civility Effort (Civility Report). The Civility Report remains an important guiding document that supports resident quality of life and student success. The City and Cal Poly have been similarly engaged in a process to understand the impacts of the Cal Poly 2035 Master Plan as identified in its Draft Environmental Impact Report, and the infrastructure and service needs, including water, wastewater and transportation, for both Cal Poly and the City. The parties understand that maintaining a high level of partnership will contribute to more effective outcomes as Cal Poly and the City continue to grow. Recognizing the importance of this overarching objective, the purpose of this MOU is limited to documenting certain key objectives identified by the parties as critical to accommodating further development on campus. II. Goals and Principles a. The parties enter this MOU to promote cooperation, and further develop their growing relationship. b. The parties will endeavor to improve communication by sharing information consistently and meeting regularly. c. This MOU is a statement of broad policy objectives and interests of the parties that will inform future discussions and negotiations between Cal Poly and the City and is not intended to create any contractual commitments. d. In the event the parties identify projects or services requiring legal and/or financial commitments between each other, the parties will negotiate in good faith toward written agreements. III. Water and Wastewater The parties have enjoyed a longstanding partnership around water as reflected in various agreements including those addressing water and wastewater treatment as well as shared supply (e.g., Whale Rock Commission). Over the past year, staff from both entities have collaborated Packet Page 250 Item 17 DRAFT 4.0 closely to develop strategies to ensure the availability and reliability of Cal Poly’s water supply and wastewater capacity in support of development planned in the 2035 Master Plan. The following objectives will be addressed via amendment of existing agreements or establishment of new agreements: a. Develop mechanisms to confirm operational resiliency of Cal Poly’s water supply b. Secure additional, temporary non-potable water supply and wastewater capacity for Cal Poly if needed to support the development of on-campus housing c. Reach agreement on Cal Poly fair-share financial contribution to support required upgrades of City’s water treatment plant and distribution system d. Reach agreement on Cal Poly fair-share financial contribution towards required upgrades of City’s water resource recovery facility and wastewater collection system e. Cal Poly to regularly inform City of progress towards reducing municipal sewer inflow and infiltration f. Establish protocol and objectives for annual partnership meeting to address items such as anticipated facility upgrades and related fair share contributions, inflow and infiltration reduction projects, smart meters installation to track water supply use/flow rates, adaptive management of water supply storage and other related water and wastewater matters. IV. Transportation The City and Cal Poly recognize the opportunity to increase their level of partnership around transportation planning and programs. Coordination of effort is essential to adapting and building systems that are responsive to growing populations and evolving transportation trends. The value of collaboration in this area has long been realized with respect to the City’s transit system, which provides excellent service to both the City and Cal Poly populations. Continued efforts to evaluate and, where appropriate, expand transit service and Transportation Demand Management (TDM) policies at the Cal Poly campus will play an essential role in supporting Cal Poly’s robust TDM program and in the City’s overarching climate action and sustainability goals to reduce Vehicle Miles Traveled (VMT) and greenhouse gas emissions. Cal Poly and City agree that continued cooperation is essential to achieve these goals and are deeply engaged in discussions around an expanded form of partnership with the shared objective of building a more dynamic, sustainable, and mutually beneficial transportation program. In addition to transit service, which is critical to the parties’ transportation plans and objectives, other specific areas that would benefit from intentional partnership include traffic safety (on and off campus), regional transit, and increased support for active transportation projects and programs. For example, City and Cal Poly recently initiated a collaborative effort to assess and procure a bike share program to serve the entire community. The parties have identified the following interests and actions for near-term implementation: a. Ensure the City is informed and consulted as Cal Poly develops and implements its TDM Program b. Scale and optimize transit services available to the Cal Poly community in accordance with changing population and utilization, with the objective of reducing VMT Packet Page 251 Item 17 DRAFT 4.0 c. Consolidate and/or coordinate active transportation projects to optimize results and avoid conflicts between vehicles, bicycles and pedestrians d. Collaborate on initiatives to improve mobility and safety off campus e. Identify potential mechanisms for Cal Poly to participate financially towards implementation of transportation safety and mobility improvements that directly benefit university students, staff and visitors. f. Collaborate on strategies to address concerns related to campus spillover parking within adjacent residential neighborhoods g. Establish protocols and objectives to address transportation planning, TDM program evaluation issues, and potential transportation enhancement projects, including trip monitoring, ongoing evaluation of VMT reduction, transit service enhancements, and programs/projects to enhance active transportation and mobility safety. V. Housing Since 2000, Cal Poly has tripled its student occupancy on campus, investing more than half a billion dollars into student housing facilities without the use of any state funds. During that same period, Cal Poly enrollment has grown by just over 4,300 students while the university has added more than 5,100 beds to its housing inventory. Cal Poly has provided additional housing capacity for all student enrollment growth since 2000. Despite Cal Poly’s enrollment increases, there were approximately 658 fewer students living off campus in the fall of 2019, as compared to the fall of 2000, because Cal Poly increased the percentage of students living on campus from 17% to 37%. The Cal Poly 2035 Master Plan sets an even more ambitious goal of housing on-campus more than 60% of anticipated enrollment. As part of the Master Plan, Cal Poly is preparing to provide for California’s critical higher education needs by increasing headcount enrollment by 4,056 students. As it has done over the last two decades, Cal Poly plans to house all of its enrollment growth, as well as significantly reduce the number of students living off campus. With Cal Poly’s planned increase of 7,200 on-campus beds articulated in the 2035 Master Plan, the university is working to reduce the number of students living off campus by more than 3,100 students. Cal Poly has elasticity in its current on-campus bed capacity within residence halls. When necessary and feasible, Cal Poly will evaluate whether increased bed density should be implemented to accommodate enrollment growth. The parties have identified the following interests and actions for near-term implementation: 1. The parties understand the importance of the university’s next student housing project and the related enabling projects (i.e. on-campus WRF to support water/wastewater capacity). The University is actively working on the university’s next student housing project to build 1600-2000 new student beds. 2. Cal Poly to regularly inform the City of progress towards constructing additional housing on campus and share its five-year capital plan, housing occupancy rates, and enrollment targets. Packet Page 252 Item 17 DRAFT 4.0 3. Establish protocol and objectives for annual partnership meeting to address issues related to university and city growth and best accomplish transportation, public service and other resource planning. City and Cal Poly leadership hereby commit to act in good faith in pursuit of these shared objectives. CITY CAL POLY _____________________________ ____________________________ ____________ ____________ Date Date Packet Page 253 Item 17 Packet Page 254 Item 17 Packet Page 255 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Draft EIR Comments Introduction/Project Description The City is concerned about enrollment growth on campus to the extent that it is not planned for and that it is not phased to occur subsequent to the provision of additional housing on campus. A spike in enrollment that occurred in 2017 provided the City with an opportunity to quantify costs associated with unplanned enrollment growth, which resulted in unplanned costs to the City in the areas of emergency response and transit, for example (Katie Lichtig; September 11, 2017, attached). The project description assumes that enrollment will increase at a lower rate over the next two decades than it has during the past two decades, but no evidence is cited to support this assumption. In fact, the data identified in the DEIR of past enrollment growth supports a growth rate of 280 students per year, not the 205 students per year used throughout the DEIR. This is equivalent to a 26.8% decrease in historic enrollment growth. No evidence has been cited or supplied to explain why it was assumed that such a significant decrease will occur, nor does the DEIR include any assurances in the form of enforceable project components or mitigation measures to ensure that the planned rate of enrollment growth will actually occur. The way to remedy this is through enforceable policies in the master plan and/or mitigation measures in the Final EIR that would prevent increases in enrollment beyond what is planned for, or that trigger additional measures to mitigate impacts should increased enrollment occur. Phasing enrollment growth in alignment with the provision of facilities on campus (e.g. water supply, active transportation projects, transit service, housing, etc.) is recommended as a method to address the potential for unmitigated impacts associated with unplanned enrollment growth. Aesthetics Slack and Grand Project The Faculty and Staff Workforce Housing (Slack and Grand) project is identified as a near term project in Table 2-12. The proposed development is up to fi ve stories in height which greatly exceeds that of the adjacent single-family residences along Slack Street. Although the DEIR identifies this as a significant and unavoidable impact, Mitigation Measure 3.1-1 relies only on landscaping to mitigate impacts and would not reduce impacts to the maximum extent feasible. Feasible mitigation could also include detailed architectural design to provide a more compatible transition to the surrounding neighborhoods, consistent with the City’s property development standards for Edge Conditions (SLOMC 17.70.050). The City believes that compliance with its standards for Edge Conditions would be feasible and effective mitigation for the project contemplated on the Slack and Grand site. Packet Page 256 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Air Quality, Energy Consumption and GHG Emissions City comments on these three topic areas are combined to focus comments on specific policy interests of the City with respect to GHG emissions reduction strategies. The City of San Luis Obispo is pursuing a 2035 Carbon Neutral goal and has taken a leadership role across the State and country with respect to programs and standards to help achieve this outcome. Specifically, the City has adopted a policy preference for all-electric new buildings and is pursuing adoption of a Clean Energy Choice Program to incentivize all- electric new development. The City is developing a Carbon Offset Requirement and has negotiated with new housing developers to eliminate the use of natural gas in major new subdivisions. Therefore, the City finds the commitment that all buildings constructed under the Master Plan will be powered by 100% on site renewable energy commendable. The City notes that this renewable energy goal is identified as a requirement in the GHG analysis in Chapter 3.8. However, mitigation measures in Chapter 3.8 concerning GHG emissions do not require that all buildings be powered by 100% renewable energy. For instance, will the WRF be 100% powered by on-site renewable energy? If so, where will the renewable energy be generated? The DEIR does not describe or evaluate any large-scale renewable energy projects to indicate that the requirement can be achieved. Implementation of the Master Plan goals on energy and GHG reduction would benefit greatly by a more detailed discussion of how the on-site renewable energy goals can be feasibly accomplished. The DEIR relies on the VMT model to supply estimates for the Master Plan’s operational GHG emissions. However, the VMT model excluded vehicle miles traveled by vendors and visitors to the campus. As a result, a GHG analysis that relies on that VMT model may not include the full scope of GHG emissions generated by this project. The DEIR states that daily VMT estimates were “adjusted to annual VMT using a conversion factor of 267 days per year, which accounts for Cal Poly’s academic schedule, holidays, and enrollment levels during summer and regular academic quarters.” (DEIR, p. 3.8-15.) Although VMT may be lower when school is not in session, the campus is still in operation and people still visit it during those times (i.e. move in, orientation, summer sessions, construction projects, etc.). As a result, GHG emissions still occur on the days that the annual VMT estimate has excluded with no basis and thus is incomplete and deprives the public from understanding the full GHG emissions of campus operations. By basing its GHG emission estimates on a VMT model that excluded 98 emission producing days per year, the GHG analysis is potentially underreporting the potential GHG impacts associated with this project. In addition, Chapter 3.3 of the DEIR acknowledges that the project will increase trip counts by 7,495 daily trips. The GHG analysis should likewise take these trips into account and fully disclose and evaluate impacts to GHG. Packet Page 257 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Biological Resources Generally, the City is concerned that the EIR and Master Plan fail to provide a program for evaluating impacts to biological resources to guide project designs and streamline subsequent environmental review. The presence of special status plant and animal species is identified, but there is no guidance through Master Plan policies or detailed mitigation measures regarding the scope and scale of future biological studies needed to avoid impacts and secure resource agency approval for projects contemplated in the Master Plan. The need for certain resource agency approvals (an Incidental Take Permit and a Habitat Conservation Plan are both noted as possible requirements) may significantly delay housing and water projects that are relied upon in the DEIR to self- mitigate impacts to housing, transportation, GHG emissions, noise and other issue areas identified throughout the DEIR. Plants The analysis in this section relies on deferral of studies to identify and mitigate impacts at some future point, however, no program for future studies is provided to guide future investigations. Mitigation measure 3.5-1a states surveys should be conducted prior to approval of “specific projects under the 2035 Master Plan.” This mitigation measure is vague as to what projects would trigger this measure (i.e. projects that may otherwise qualify for an infill exemption). The DEIR appears to base analysis of potential impacts to protected plant species on one reconnaissance level survey that was completed in June 2019. As noted in Table 1, Appendix E, there are many protected plant species that may be present on the site that do not flower in June. Mitigation Measure 3.5-1b only provides for avoidance of impacts to special status plants in the area outside of the footprint of structures and site features. Proper evaluation in advance of the approval of building footprints should inform their final location to potentially avoid or minimize impacts to the greatest degree possible and avoid potential delays in Master Plan implementation. Hydrology and Water Quality The DEIR does not evaluate potential impacts that could result from flooding. One way to address this would be for DEIR and Master Plan to include specific references to the regional San Luis Obispo watershed Waterway Management Plan (WMP). The WMP has been adopted by both the City and County as the agreed upon standard for the San Luis Obispo watershed. The impact of not analyzing flooding is that the project may cause an increase in the rate or amount of surface water that would result in flooding both on and off-site, it may impede or redirect flood flows, or it may cause the release of pollutants due to inundation that may occur within the flood plain. CEQA requires a full evaluation of these impacts, as stated in CEQA Guidelines Appendix G. By not including this full evaluation in the DEIR, the project creates potential unmitigated impacts that have not be disclosed to the public or decision makers. Slack and Grand project and Retirement Community The DEIR does not evaluate impacts to City stormwater facilities and potential runoff from the Slack and Grand site that will flow into the City’s stormwater system and into San Luis Packet Page 258 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Obispo Creek. Once water from on-site impervious areas enters the City right’s-of-way, Cal Poly would be subject to the City’s stormwater permits. No analysis is provided demonstrating how the project would comply with City permit requirements. No analysis is provided on how the development of the retirement community may also impact the City’s stormwater system as drainage is likely to be directed to City infrastructure. No evidence is provided of how these projects will comply with City permit requirements or how San Luis Obispo Creek will not be impacted by development. A requirement for WMP compliance would address the concern. Flooding The DEIR does not evaluate potential floodplain impacts. City and County Floodplain Management Regulations should be disclosed and pre- versus post-development impacts should be analyzed. The DEIR states that buildings will be located above the floodplain but there is no analysis or clear mitigation to ensure that floodwaters will not be displaced creating downstream impacts. These are significant issues that could create hazardous conditions and property damage. In particular, the DEIR does not evaluate the extent of construction within the Base Flood Elevation (BFE) and whether it is feasible to locate new construction outside this zone. If flood flows are obstructed or capacity of the floodplain is altered without appropriate mitigation, impacts will result. Noise Spanos Stadium The Master Plan Update includes a 4,000 seat increase in capacity at Spanos Stadium and there is no quantified analysis of existing or anticipated noise levels during events. Absent a noise evaluation, the DEIR and Master Plan could include Mitigation Measures or policies to ensure disclosure of future noise levels and that feasible mitigation is applied. For example, the DEIR and/or Master Plan could provide direction regarding the orientation of speakers away from sensitive receptors, acceptable volume levels, restrictions on hours of events, and clear thresholds to guide the evaluation of future stadium expansion projects. Construction Noise Implementation of the Master Plan Update would include construction of millions of square feet of academic and support buildings, infrastructure improvements, a new Wastewater Reclamation Facility (WRF), expansion of Spanos Stadium, and several housing projects to be constructed over a period of 15 years. These activities will introduce significant new noise sources to the areas surrounding the entrances to campus and have the potential to create long term impacts to the surrounding areas. The DEIR does not include disclosure of potential impacts associated with construction traffic under 3.10-1, Impact 3.1-2, or elsewhere in the DEIR. The DEIR appropriately references City noise thresholds and it would also be appropriate to make use of standard City noise reduction methods as outlined in the City General Plan Noise Element and Noise Standards contained in its Municipal Code. Some of the standard noise reduction measures include: Packet Page 259 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR x Limit the operating times of noise-producing activities and compliance with City Municipal Code requirements for construction hours of operation. x Rerouting traffic and construction truck trips onto streets that can maintain desired levels of service and which do not adjoin noise-sensitive land uses. The DEIR includes a measure for a materials haul routes, but the City should be consulted on these routes since City residents and will be affected and City streets will be used. x Lowering traffic speeds through street or intersection design methods. x Conduct focused noise studies to supplement overall programmatic noise analysis to determine specific measures to avoid or minimize noise impacts. x Best Management Practices (BMP’s) should be established which include measures such as use of sound blankets, mufflers, temporary sound barriers, locating stationary equipment away from residences, neighboring property owner notification and a process to address construction noise complaints. x Lastly, City Streets will be impacted from construction trips and the University should implement a pavement index evaluation before and after construction and cover the incremental costs for impacts related to the degradation of city roads. Population and Housing The City appreciates and supports the Master Plan’s efforts to plan for and provide a significant amount of student housing. The housing goals stated in the Master Plan, if reached, will benefit Cal Poly’s students and, importantly, the surrounding community as well, returning needed housing stock to non-students and decreasing neighborhood compatibility issues. However, the DEIR relies on the housing goals stated in the Master Plan without providing assurances that the housing will actually be built or that it will be built in time to mitigate the impacts of increased enrollment. If the on-campus housing contemplated under the Master Plan is not timely built, impacts to transportation, air quality, noise, and housing will be more significant than evaluated in the DEIR. Table 2-9 sets forth a helpful yearly estimate of enrollment and on-campus housing through the planning horizon of the Master Plan. However, the estimates are based on two assumptions that lack substantial evidence: (1) enrollment will increase at a steady yearly rate of only 205 students; and (2) new housing will actually be constructed consistent with stated goals, with no enforceable accountability measures or mitigations required if goals are not actually met. Because enrollment increases may occur at rates and in amounts that are much greater than have been estimated in the DEIR, and because housing may not be built on campus consistent with the Master Plan’s stated goals, the DEIR’s assumptions lack substantial evidence as a basis for its conclusions about environmental impacts. Packet Page 260 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Affordable Housing The DEIR does not include an analysis regarding potential housing impacts associated with the increased faculty, staff, vendors, and construction personnel necessary to complete the Master Plan and support the increase in enrollment. The 380 units proposed for the Slack and Grand project will not accommodate the 787 new employees anticipated under the Master Plan (when compared to 2015 levels), nor will it address housing needs generated by the 15-year construction period or the additional employees anticipated to use the expanded Technology Park. (See DEIR, p. 2-18.) The DEIR also does not evaluate impacts to housing that will result from the new employees required to support the staff at the new retirement community. If sufficient affordable housing is not available in the City, these employees will be required to commute to the campus and to the retirement community from outside of the area. The DEIR lacks sufficient evidence to show that these constraints were taken into account in the VMT analysis, the estimate of transportation impacts, or in the analysis of impacts on housing contained in this chapter. As the DEIR admits, the City is a high-cost housing market. (DEIR, p. 3.11-15.) Yet the DEIR does not contain any analysis of the potential impacts associated with the increased demand for affordable housing to support the new employees associated with the Master Plan. Both the City and County have Inclusionary Housing policies and ordinances to ensure that new development that creates a demand for affordable housing either directly or indirectly contributes to the construction of affordable housing units. The lack of analysis in the DEIR could be addressed through compliance with City or County inclusionary housing requirements. Off-Campus Housing The DEIR says that enrollment increases are likely to occur before new housing is constructed on-campus, which will require more students to seek housing in the City and County than are already living off-campus. (DEIR, p. 3.11-20.) The DEIR then dismisses impacts to housing in the City and County by arguing that vacancy rates would accommodate this influx of new residents. This conclusion is not supported by substantial evidence. First, vacancy rates in the City are less than 4%, not 6.3% as reported in the DEIR. According to the Census ACS Survey, the rental vacancy rate in 2017 was 3.63%. Moreover, the DEIR does not cite to evidence that a 6.3% vacancy rate equates to enough housing to accommodate at least 416 additional students (the number of additional enrolled students anticipated in the DEIR for the years 2020 and 2021). Nor does the DEIR provide any evidence or analysis of what will occur if new on-campus housing is not constructed by the year 2022, however, delays could occur and there are no mechanisms in the DEIR or Master Plan that link enrollment growth to the provision of new housing supply on campus. Therefore, the DEIR should have evaluated impacts to housing resulting from delays in construction of housing on-campus. The failure to do so results in underreported and unevaluated potentially significant impacts to housing. Public Services In April 2018, the City of San Luis Obispo published a Capital Facilities Development Impact Fee Nexus Study (EPS; April 16, 2018). The Nexus Study provided the City with Packet Page 261 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR the necessary technical documentation to adopt updated fee programs to ensure that new development covers its fair share of the costs of infrastructure and public facilities that benefit the new development. Although the City’s fee programs do not apply to development on campus, the Nexus Study provides a sound methodology under CEQA for the analysis of impacts to public facilities. The City encourages Cal Poly to use this Nexus Study as a basis to determine fair share contributions associated with the provisions of new residential uses on campus (other than student housing), such as the Grand/Slack workforce housing project and the retirement community project located west of Highway 1, near Stenner Creek Road. The City has available mitigation either via agreement or using impact fee methodology in the Nexus Study for each of the following issue areas. Emergency Response The DEIR evaluates potential impacts on fire service based on per capita calls for service to the campus in the year 2017 as well as off-campus calls for service made by students. (DEIR, p. 3.12-15.) These projections do not include any per capita analysis of calls for service to the new residents at the workforce housing (Slack and Grand) project or the retirement community project. In fact, there is no discussion of how fire and police services will be provided to these new communities, which are outside of the core area covered by the current emergency services agreement. In addition, the future population and planned uses at the retirement community are very different from the population and uses planned for the remainder of the campus. Therefore, the student-related calls used to estimate a rate of per capita calls for service cannot be relied upon to estimate impacts to public services associated with these projects. As a result, the DEIR should identify the need to update the current Emergency Services Agreement (July 1, 2018) prior to development and occupancy of either project. Law Enforcement The DEIR does not take into consideration additional demands on SLOPD services that will be generated by the retirement community and Slack and Grand projects. These projects are likely to require SLOPD services as non-student residents seek help from the San Luis Obispo police department in addition to University PD. Moreover, the retirement community’s separation from the main campus makes it even more likely that calls for service will be answered by the Sheriff’s Department as the site is located outside of City limits and across Highway 1 from the main campus. The DEIR does not disclose or evaluate how police services will be provided to these new communities nor how impacts to SLOPD and the Sheriff’s Department will be addressed. Parks and Recreation The DEIR analyzes potential impacts to recreational and park facilities using an estimated total campus population of 28,935 to determine the total acres of recreational facilities needed to serve the population. This estimate excludes the proposed retirement community population, and possibly the Slack and Grand project population as well, which together may add another 1,025 residents and 60 employees to the Master Plan’s Packet Page 262 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR total population. As a result, the DEIR potentially underestimates the recreational needs and impacts of the increase in population contemplated under the Master Plan. Transportation Facility Expansion The Master Plan project description includes expansion of existing sport and special event facilities on campus, including a 4,000-seat expansion of Alex Spanos Stadium. Trip generation from these expansions would generate thousands of additional trips in relatively short time periods and there are no policies or programs that would limit the use of these facilities. While level of service (LOS) or other measures of auto capacity may no longer be required as applicable thresholds of significance for analysis of transportation impacts under CEQA, the magnitude of additional trip generation (auto, bikes, peds, transit) from these expansions should be quantified to guide system planning and traffic handling plans and programs. The DEIR’s transportation analysis should be updated to include an evaluation of the venues and events proposed in the Master Plan and the adequacy of the existing circulation system to accommodate these increased demands. In addition, the Master Plan should be updated with policies and programs that govern the use of these facilities. Enrollment and Housing Linkage The Master Plan provides estimates or forecasts for student enrollment levels and on- campus housing production through a phased development program through 2035. The transportation impact analysis provided in the DEIR considers the increased production of on-campus housing as a significant contributor towards reducing campus-generated VMT by providing opportunities for students to live in a location where most of their daily travel is possible via short trips by foot, bicycle or transit. However, the Master Plan does not include any formal policies, programs or mitigation mechanisms that govern actual enrollment levels or require the timely production of on-campus housing in tandem with, or in advance of, increases in on-campus enrollment or traffic-generating development. To address this, the Master Plan and DEIR should include policies or programs to govern actual enrollment and development to a level that is on pace with actual production of on- campus housing and informed by the actual effectiveness of the proposed Transportation Demand Management (TDM) programs as evaluated by regular trip/VMT monitoring activities. Multimodal Transportation Demand It is understood that auto level of service (LOS) and other measures of traffic congestion were not included to determine transportation impacts under CEQA pursuant to SB 743. In turn, the EIR Transportation section includes no quantitative estimates of auto traffic generation associated with buildout of the Master Plan. While the DEIR may not be required to evaluate auto traffic generation with respect to LOS or other capacity-related significance criteria to determine transportation impacts, complete omission of this information from the Transportation chapter presents significant challenges for entities such as the City with respect to system planning for streets and intersections that provide direct access to the Cal Poly Campus. For purposes of full disclosure, the City request that Packet Page 263 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR the Final EIR include the estimated number of net new daily, AM and PM peak hour vehicle trips expected to be added to City streets within the vicinity of the campus. This information was provided in Appendix G for bicycle and pedestrian trips and should be replicated for auto trips. VMT Impacts and Mitigation The DEIR identifies a potentially significant impact (Impact 3.13-1) due to project- generated VMT that exceeds regional VMT thresholds. The corresponding mitigation measure (Mitigation 3.13-1) requires development and implementation of a Transportation Demand Management (TDM) plan and concludes that this impact would be reduced to a “less-than-significant” level. The adequacy of this mitigation approach is questionable for several reasons. The EIR concludes that the TDM measures outlined in Mitigation Measure 3.13-1 would reduce campus-wide VMT to the level required to mitigate the identified impact—a net reduction of 5.04 VMT per service population (about 21% below the baseline Existing plus Project VTM estimates). However, the document provides no supporting analysis or documentation to verify whether this level of reduction is feasible or whether similar results have been achieved at comparable university campuses. Studies show that the ultimate efficacy of a TDM program can vary significantly from project to project. While there is available data and planning-level models that can be used for estimating TDM reductions—such as the CAPCOA model referenced in the CSU Transportation Impact Study Manual—the DEIR provides no supporting analysis or documentation to support the claims presented. The CSU CEQA Handbook recommends caution regarding use of mitigation measures that could be interpreted as “deferred mitigation.” On pg. 84-85, the Handbook states: The CSU CEQA Handbook recommends caution regarding use of mitigation measures that could be interpreted as “deferred mitigation”. On pg. 84-85, the Handbook states: “Mitigation measures cannot defer to future studies, consultations, or future undefined time. Such measures are called “deferred mitigation” and are easy points for legal challenge. In some situations, it is not known whether there will be an impact without doing additional surveys or studies, especially for large and long-term projects or programs for which a Program EIR is prepared. To avoid improper “deferred mitigation” you must clearly identify what you will do if any future studies identify that there could be an impact. Alternatively, if such information is not yet available, you need to incorporate performance standards or criteria into the measure to ensure that the strategies ultimately selected in fact will reduce the impact as reported in the CEQA document.” The Handbook continues with the following guidance: Packet Page 264 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR “Remember: If some doubt exists as to whether a mitigation measure will fully mitigate the impact, it is good practice to indicate that the impact will remain significant and unavoidable even with the incorporation of mitigation.” As currently presented, the strategies identified under Mitigation Measure 3.13-1 appear to be deferred mitigation. The DEIR recommends development of a TDM plan and identifies potential strategies that could be implemented to reduce vehicle trip generation, including a biennial monitoring program to track the efficacy of the TDM plan. Of particular concern is the fact that this mitigation measure does not describe how VMT will be measured as part of this monitoring program, what performance criteria will be used to evaluate progress towards achieving the targeted VMT reduction, or what specific actions will be taken if monitoring results reveal that TDM strategies have not been sufficiently effective. The City has relayed on several occasions that this was a minimum measure that must be met and its absence is noticeable and does not provide the level of confidence that TDM or monitoring will be an integral part of achieving the University’s projected mode shifts. Furthermore, this mitigation strategy does not require any measurable level of TDM implementation or VMT reduction prior to implementation of potential VMT-increasing activities, such as increases to student enrollment and on-campus employment without corresponding production of on-campus housing, allowing impacts to occur before mitigation would be implemented. This strategy relies on monitoring every two years to verify if required VMT reductions have been achieved, which potentially defers necessary mitigation until after an impact has materialized. Monitoring should be conducted annually, and mitigation measures should be taken immediately if VMT is higher than projected. x It should be noted that a primary component of the TDM plan includes expansion of local and regional public transit services to the campus through coordination and fair-share contributions towards increasing SLO Transit and SLORTA bus services. However, because these transit services are not operated by Cal Poly, the university cannot ensure that these services are expanded as needed to meet the required VMT reduction targets. If VTM increases are not closely monitored and needed fair-share contributions are not provided prior to impacts occurring and/or if the amount of fair- share contributions is inadequate, the City would be put in a position of having to fund the gap to provide the increased service, or the City may not be able to shoulder the increased financial burden depending on the budget priorities at the time. The City of San Luis Obispo is agreeable to negotiating an MOU with the campus for the purpose of implementing this mitigation measure that broadly seeks to bring Cal Poly contributions in line with current and future operational needs. Within the Master Plan, Implementation Program 20 states that “Cal Poly should partner with the City to help develop off-campus bicycle improvements as prescribed in the City’s bike plan and that improve connections between the campus and community.” Further, DEIR Mitigation Measure 3.13-1 outlines a TDM program that includes a general recommendation to “support active transportation projects on and near campus through Packet Page 265 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR infrastructure improvements to enhance safety and efficiency of these travel modes.” The City of San Luis Obispo is agreeable to negotiating an MOU with the campus for the purpose of implementing this mitigation measure. However, the DEIR should identify more specific recommendations or mechanisms for contributing towards active transportation infrastructure improvements within the vicinity of the campus. Potential mechanisms for proportionate contribution may include participation in the City’s Transportation Impact Fee program, which funds citywide bicycle and pedestrian infrastructure improvements, or direct participation in projects near campus, such as the addition of separated/protected bicycle facilities, installation of accessible pedestrian curb ramps, additional street lighting, and intersection crossing enhancements. Traffic Safety The Environmental Setting section of the EIR Transportation Chapter provides a brief summary of existing collision trends for streets within the vicinity of the campus, as referenced from recent editions of the City’s Annual Traffic Safety Report. However, the Impacts and Mitigation Measures section includes virtually no discussion or analysis of potential traffic safety issues outside of the campus boundaries with implementation of the Master Plan. Per the DEIR, build-out of the Master Plan is projected to add approximately 930 new bicycle trips, 850 new pedestrian trips, and 133,000 net new VMT per day to City transportation facilities within the vicinity of the campus. There is no discussion of whether these increases in multimodal traffic demand can be accommodated by existing off-campus infrastructure, or whether this demand has potential to exacerbate existing traffic safety issues within the campus vicinity. Additional analysis of potential traffic safety considerations should be provided as follows: A.Evaluate potential for additional traffic (auto, bike & pedestrian) generated by the campus to increase collision rates at the following high-collision rate locations as identified in recent City Traffic Safety Reports: x California/Taft x California/Monterey x California/US 101 NB Ramps x Grand/Loomis x California/Mill x Foothill/Santa Rosa x Foothill/Casa x Santa Rosa/Boysen x Foothill Boulevard (Tassajara to California) B.While auto traffic capacity analysis may no longer be required to determine impacts to transportation, vehicle queuing analysis should be provided for the abovementioned intersections for the purposes of evaluating potential safety Packet Page 266 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR impacts related to turn pocket queue spillback, or sight distance impacts as a result of project traffic. Parking The project does not include sufficient parking improvements to accommodate the increase in on-campus population contemplated in the Master Plan. It is also unclear if this is a formal aspect of the proposed TDM program. Even if first and second-year students are precluded from parking cars on-campus, the addition of only 174 new parking spaces will not be sufficient for the new faculty, support staff, and employees who will be working on campus, nor has evidence been presented that sufficient parking will be available for vendors, temporary employees, or event attendees, including attendees at the planned expansion of Spanos Stadium and the Technology Park expansion. Moreover, the project description indicates that Cal Poly intends to limit parking for certain students, however, these limitations are stated as intentions and not enforceable restrictions and the DEIR provides no evidence that the lack of parking on campus will actually persuade new students, employees, and visitors to not drive personal automobiles to campus. As the on-campus population increases, it is reasonable to assume that more cars will come with their owners. The DEIR does not describe how Cal Poly intends to ensure that students who live on or off campus do not bring cars to the area and park them off campus. This lack of planning for parking will perpetuate and increase impacts on the neighborhoods surrounding the campus where employees and visitors will be forced to search for parking. This, in turn, will create additional impacts to noise, roadway maintenance, and air quality in these areas. These impacts have not been evaluated properly in the DEIR. The City believes that coordination of specific mitigation measures on the matter of parking is important to ensure that any impacts created by a lack of parking on-campus do not simply spill over to City neighborhoods off-campus. Utilities and Service Systems Utilities Water Supply Resiliency The DEIR is required to evaluate water resiliency to ensure that sufficient water supplies will exist to serve buildout under the Master Plan. The DEIR includes no evidence or information regarding how Cal Poly is planning for water resiliency during times when Whale Rock dam, spillway, pump stations, or pipeline are unavailable due to maintenance needs or construction. Cal Poly worked with the City to identify potential water supply alternatives to improve its water resiliency; however, Cal Poly did not provide this information in the DEIR. The 2007 Memorandum of Understanding (2007 MOU) between City and the University regarding capacity interest in City water and wastewater facilities does not address water supply resiliency. Water Storage/Reservoir Expansion The DEIR does not include an analysis of the impacts associated with the expansion of Cal Poly’s existing reservoir system for recycled water storage necessary to support Cal Poly’s proposed Water Reclamation Facility (WRF) and future water needs contemplated under the Master Plan. Appendix H, page 24, explains that Cal Poly’s “proposed WRF would also require expansion of the existing reservoir system to a maximum (total) of 100 Packet Page 267 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR AF. If the existing reservoir system cannot be expanded then the University may potentially construct two additional reservoirs for recycled water storage from the WRF.” Water storage is also generally described on Project Description on page 2-40 and page 2-47. This expansion, or new construction of additional reservoirs, is not included in the impact analysis. One hundred acre-feet of water storage is nearly 32.6 million gallons - a substantial amount of water. The Master Plan EIR does not identify where this storage will be located, nor does the DEIR analyze the environmental impacts associated with construction and maintenance of these significant new facilities. It is also unclear whether the storage will be sized and under the jurisdiction of the Division of Safety of Dams. If so, the Division of Safety of Dams should be identified as a responsible agency and should be consulted regarding the adequacy, design, and permitting of the storage facilities. Because this information is not provided int the DEIR, impacts associated with providing the water and wastewater services necessary to support buildout of the Master Plan may be understated. The DEIR does not include analysis of daily and monthly non-potable water demands to support its water supply impact analysis. The daily and monthly demand pattern for agricultural and landscape irrigation is relevant to determining whether Cal Poly’s proposed WRF will generate a sufficient and reliable water supply. Based on 2015 and 2019 data, Cal Poly’s non-potable demand was over 850,000 gallons per day in July, when average daily wastewater generation was ~38,000 gallons in 2015 and ~75,000 gallons in 2019 for the entire existing campus. The DEIR does not include information regarding the existing non-potable water storage capacity on-campus, the extent to which existing daily agricultural water demand will be feasibly supplied with water from the WRF, and the availability of sufficient storage to ensure delivery of enough water to meet agricultural demand. In other words, existing daily agricultural water demand is not estimated in the DEIR to support the concept that this demand will be offset with non-potable water from the proposed WRF. This information is necessary to inform the sizing of the needed storage and to illustrate that the planned water sources required to support buildout of the Master Plan are feasible. As a result, the DEIR does not include the information necessary to support its conclusions regarding impacts to agricultural uses and to water demands resulting from buildout of the Master Plan. The DEIR acknowledges that “some adjustments to the system, such as increased pumping to reservoirs or storage tanks may be necessary,” however, no analysis was provided regarding the environmental impacts associated with the siting, construction, and maintenance of these new reservoirs and storage tanks. (DEIR, p. 3.14-14) In fact, neither the DEIR nor the Master Plan identify how many of these storage facilities are needed, where they will be located, or whether it is feasible to locate them in places that will not impact biological, cultural, hydrologic, and other resources. Instead, it is likely that the amount of storage that will be necessary to serve the new development contemplated in the Master Plan will be significant, which will likewise create significant impacts to sensitive resources. As a result, the DEIR fails to identify potentially significant impacts Packet Page 268 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR associated with the infrastructure necessary to provide sufficient water to campus under the Master Plan. The DEIR’s conclusion that the Master Plan will not require or result in the relocation or construction of new or expanded water infrastructure is not consistent with what is proposed by Cal Poly in the Master Plan (100 acre-feet of storage). This is a significant problem for the DEIR, as well as the Master Plan, as new housing and other amenities will not be able to be completed until these necessary improvements are completed and thus potentially creates a cascade of unmitigated impacts if campus population increases through increases in enrollment that does not include concomitant housing. Short-Term Non-Potable Water Supplies Mitigation Measure 3.14-3 relies on the possibility that the City may provide short-term non-potable water supplies to Cal Poly in the event that the WRF is not completed and capable of providing sufficient water supplies for near term projects. A number of important actions by the City would be required in order to enable this to occur. The City’s General Plan will need to be amended to enable it to provide non-potable water to Cal Poly on a short term-basis 1, and an analysis must be completed to ensure that providing this water would not interfere with the City’s existing entitlements and permits. A contract will also be required, which has not been negotiated between the City and Cal Poly. The City is open to discussing this arrangement, but additional time, resources, and City Council action is necessary, which the DEIR should acknowledge. Additionally, this measure defers an analysis of whether the provision of such non-potable water by the City would create its own negative environmental impacts. A provision should be added to Measure 3.14-3 to allow reliance on such temporary non- potable sources only if no negative environmental impacts would occur as a result and for the sole purpose of delivering on campus housing. Finally, this measure does not include specific requirements for measuring and monitoring water demand in conjunction with any arrangement for short-term water supplies from the City and expected completion of the WRF. The measure should be amended to require measuring and monitoring of water demand and supplies in sufficient intervals and using realistic and supported projections of future supply and demand to ensure that enough potable water will truly be available to serve new construction and non-potable water will be available to continue to serve Cal Poly’s existing agricultural uses. The DEIR concludes that the Master Plan will have sufficient water supplies available to serve the project and reasonably foreseeable future development during normal, dry and multiple dry years due to implementation of Measure 3.14-3. However, this measure does not account for the possibility that new housing and other water-dependent construction 1 General Plan Policy 1.13.2. Recycled Water. Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non- potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. Packet Page 269 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR may be built under the Master Plan before the WRF and associated expansion of existing water storage reservoirs, or construction of new water storage reservoirs, are completed or capable of providing sufficient water to offset demand and that short-term non-potable water supplies may be available for some period of time but become unavailable before the WRF is completed. In this event, the new housing and other buildings would be occupied but Cal Poly would not have sufficient potable water available through its Whale Rock entitlement, or through a temporary non-potable supply from the City, to supply all of its demand. It is also possible that problems will occur during the design, construction, and permitting of the WRF and associated expansion of existing water storage reservoirs, or construction of new water storage reservoirs, such that it becomes significantly delayed or rendered infeasible altogether. Because the design of the WRF is not complete and there is currently no plan for sufficient storage capacity, it is questionable that reliance on the WRF is feasible to mitigate the Master Plan’s future water demand. It is highly unlikely that the WRF and associated water storage will be constructed and operational by the year 2022. Design, construction, and permitting of new water reclamation and water storage facilities take significant amounts of time and resources. As a result, it is likely that Cal Poly will require alternative water sources to supply new development under the Master Plan, as contemplated in Mitigation Measure 3.14-3, and additional capacity within the City’s WRRF to accommodate growth until Cal Poly’s WRF is operational. To the extent that a delay in completion of the WRF also delays completion of new on-campus housing to defray housing, transportation, air quality, and GHG impacts caused by increased enrollment, these would be new or substantially increased impacts of the Master Plan that are not evaluated or disclosed in the DEIR. Impacts to the City’s Water Resource Recovery Facility (WRRF) Table 3.14-8 summarizes projected wastewater flows under full buildout of the Master Plan. However, the table does not include an estimate of flows occurring during the years 2015-2020. From 2015 to 2019, flows have increased from 197,557 gallons per day (gpd) in 2015 to 274,795 gpd in 2019, an increase in the annual average 79,480 gpd. The 2007 MOU identifies Cal Poly’s capacity interest as “daily dry weather flow calculated on a monthly average of .471 million gallons daily.”Cal Poly’s monthly average dry weather flow has increased from 302,595 gpd in 2015 to 384,627 gpd in 2019, an increase in 82,032 gpd. By not including the increased flows that have occurred since the year 2015, the DEIR underestimates the total amount of wastewater that will be generated under the Master Plan. This underestimation impacts Cal Poly’s ability to rely on its proposed WRF and the City’s wastewater services to meet total Master Plan demand. The baseline wastewater flows identified in Table 3.14-10 do not identify appropriate flows to accurately measure impacts associated with increased wastewater generated under the Master Plan. Table 3.14-10 identifies an “average annual flow” in 2015. However, as described above, the 2007 MOU for wastewater treatment services uses daily dry weather flow calculated on a monthly average, which is higher. Using Cal Poly’s wastewater flow for 2019 leaves less than an additional 100,000 gpd available for the year 2020. If projected flow increases are correct for the year 2025 as identified in Table 3.14-10 (114,433 gpd), Cal Poly does not have sufficient capacity under the 2007 MOU Packet Page 270 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR regarding capacity interest in City facilities to support Master Plan development planned to be online in 2025. This is a potentially significant impact that is not disclosed, evaluated, or mitigated in the DEIR. Given the likelihood of delays in completion, permitting, and operation of the new WRF, it will be likely that Cal Poly will rely on increased wastewater treatment services the City to support the Master Plan. Mitigation Measure 3.14-4a would preclude operation of new facilities under the Master Plan until the WRF is completed or sufficient wastewater services are available from the City. However, as stated above, based on the trend from 2015 to 2019, Cal Poly is expected to exceed existing capacity at the City’s WRRF in the year 2025 under the 2007 MOU. As a result, it is likely that new on-campus housing projects will be delayed even though enrollment is expected to increase. This will result in new and increased impacts to housing, transportation, air quality, and GHG that have not been analyzed in the DEIR. Impacts to the City’s Wastewater Collection System The DEIR acknowledges that Cal Poly’s existing peak wet weather wastewater flows exceed the 1.2 mgd limitation included in the 2007 MOU between the City and Cal Poly, that flows exceeded the limit in the year 2015, and that even implementation of the WRF and other conservation measures will not adequately address these exceedances. Mitigation Measure 3.14-4b addresses this issue by requiring Cal Poly to implement inflow and infiltration reduction projects to reduce peak wet weather flows, which the City appreciates. However, the measure requires that the inflow and infiltration reduction projects reduce flows to 2018/2019 levels, not to the 1.2 mgd limitation stated in the 2007 MOU which is not adequate mitigation nor consistent with its commitment to the City of San Luis Obispo. The DEIR does not evaluate the environmental effects of peak wet weather flows caused by inflow and infiltration into Cal Poly’s sewer pipes. These peak flows utilize capacity reserved for future development in the City and can lead to sanitary sewer overflows in the City’s wastewater collection system. Sanitary sewer overflows are a public health risk and can result in NPDES (National Pollutant Discharge Elimination System) Permit violations, fines from the Central Coast Water Board, beach closures by the San Luis Obispo County Public Health Department, Clean Water Act third party lawsuits, or a long- term enforcement agreement referred to as a consent decree. Environmental impacts from Cal Poly’s peak wet weather flows must be disclosed and evaluated in the DEIR. Impacts to the City’s Water Treatment Plant and Water Distribution System The Water Supply Assessment, included in DEIR Appendix H, assumes that the portion of Cal Poly’s Whale Rock supply currently used for agricultural uses will be replaced with non-potable water from Cal Poly’s proposed WRF, freeing up all of Cal Poly’s Whale Rock water for potable use to serve new residents, students, and employees on campus. (DEIR, p. 3.14-12.) This will require the City to treat more water than it is currently treating for Cal Poly. Although the DEIR acknowledges that the 2007 MOU provides Cal Poly up to 1,000 AFY of water treatment services (1.44 mgd), peak day projections provided in Table 15 exceed 1.44 mgd. This impact is not identified in Impact 3.14.1. Packet Page 271 Item 17 City of San Luis Obispo Comments Cal Poly 2035 Master Plan Draft EIR Additionally, the impact analysis in section 3.14.1 references the Water Supply Assessment which includes numerous assumptions related to the operation of the City's water distribution system that are not identified in the 2007 MOU and were not validated by the City prior to inclusion in the DEIR. Without a detailed review and understanding of the modeling assumptions, the City does not agree with the conclusion under Impact 3.14.1, on page 3.14-14 that “Modeling indicates that there is adequate conveyance capacity to accommodate anticipated development associated with the 2035 Master Plan under average day demand, peak daily demand, and peak hourly demand.” Also, due to these assumptions, the City does not agree with the determination provided in Section 1.4 (3) that “There is adequate City potable water conveyance capacity under ADD, PDD, PHD, and PDD + City FF for all Cal Poly flow conditions modeled.”i Both Section 3.14 and Appendix H refer to a Cal Poly Utility Master Plan with an anticipated completion date in early 2020. This document has not been made available for City review and may also include invalid assumptions related to the operation of the City's water distribution system. A modification to the MOU between Cal Poly and the City is needed to clarify assumptions related to peaking factors, fire flow, storage, and conveyance capacity to determine whether significant capital improvements are necessary to Cal Poly’s or the City’s water distribution systems for buildout of the Master Plan. Water and Wastewater Service to the Proposed Retirement Community The DEIR does not disclose impacts associated with connecting the planned retirement community located west of Highway 1 from the rest of campus and may rely on the City’s water distribution system for its water service (including fire flow and storage) and/or the City’s wastewater collection system. It is unclear whether any planning or environmental analysis has been conducted to determine that water and wastewater services to these areas is available and can be feasibly provided, or if Cal Poly is intending to rely on the City to provide domestic water, fire flow, and water storage and treat wastewater from this facilities. As identified in the City’s General Plan, the City’s wastewater collection system is capacity constrained during peak wet weather in the service area adjacent to Cal Poly’s proposed retirement community. Average wastewater flow is estimated at 21,129 gpd in Appendix I, Table 1, in 2030. If Cal Poly is proposing to connect to the City for wastewater collection service, mitigation would be required to achieve an adequate, measurable offset of wet weather wastewater flows. i “ADD” is average day demand; “PDD” is peak daily demand; “PHD” is peak hourly demand; City FF is City fire flow. 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