HomeMy WebLinkAbout10-06-2020 Agenda Packet
Tuesday, October 6, 2020
San Luis Obispo Page 1
Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of
the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City
of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the
convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be
holding all public meetings via teleconference. There will be no physical location for the Public to view the
meeting. Below are instructions on how to view the meeting remotely and how to leave public comment.
Additionally, members of the City Council are allowed to attend the meeting via teleconference and to participate
in the meeting to the same extent as if they were present.
Using the most rapid means of communication available at this time, members of the public are encouraged
to participate in Council meetings in the following ways:
1. Remote Viewing - Members of the public who wish to watch the meeting can view:
• View the Webinar (recommended for the best viewing quality):
➢ Registration URL: https://attendee.goto webinar.com/register/67 25008250110056203
➢ Webinar ID: 889-075-619
➢ Telephone Attendee: +1 (562) 247-8422, Audio Access Code: 676-830-365
Note: The City uses Go to Webinar for City Council Meetings please test speakers and mic prior to
joining webinar. You Tube tutorial for Attendees and Audio connections link.
• Televised live on Charter Cable Channel 20
• View a livestream of the meeting on the City’s YouTube channel: http://youtube.slo.city
2. Public Comment - The City Council will still be accepting public comment. Public comment can be
submitted in the following ways:
• Mail or Email Public Comment
➢ Received by 3:00 PM on the day of meeting - Can be submitted via email to
emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA
93401. All emails will be archived/distributed to councilmembers, however, submissions after
3:00 p.m. on the day of the meeting may not be archived/distributed until the following day.
Emails will not be read aloud during the meeting.
• Verbal Public Comment
➢ In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item
number you are calling about and leave your comment. The verbal comments must be limited to 3
minutes. All voicemails will be forwarded to the Council Members and saved as Agenda
Correspondence. Voicemails will not be played during the meeting.
➢ During the meeting – Join the webinar (instructions above). Once the meeting has started, please
put your name and the item # you would like to speak on in the questions box. During public
comment for the item, your name will be called, and your mic will be unmuted. Contact the office
of the City Clerk at cityclerk@slocity.org for more information.
San Luis Obispo City Council Agenda October 6, 2020 Page 2
San Luis Obispo Page 2
6:00 PM
REGULAR MEETING
TELECONFERENCE
Broadcasted via Webinar
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
PRESENTATIONS
1. DOMESTIC VIOLENCE AWARENESS MONTH PROCLAMATION
(HARMON – 5 MINUTES)
Recommendation:
Mayor Harmon will proclaim the month of October as “Domestic Violence Awareness
Month.”
2. FIRE PREVENTION WEEK PROCLAMATION (HARMON / MAGGIO – 5 MINUTES)
Recommendation:
Mayor Harmon will proclaim the week of October 4-10, 2020 as “Fire Prevention Week.”
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
(Not to exceed 15 minutes total)
The Council welcomes your input. State law does not allow the Council to discuss or take
action on issues not on the agenda, except that members of the Council or staff may briefly
respond to statements made or questions posed by persons exercising their public testimony
rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items.
CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three-minute time limit.
San Luis Obispo City Council Agenda October 6, 2020 Page 3
3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
4. MINUTES REVIEW - SEPTEMBER 15, 2020 CITY COUNCIL MINUTES
(PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on September 15, 2020.
5. SECOND READING AND ADOPTION OF ORDINANCE NO. 1689 (2020 SERIES)
ESTABLISHING PRE-ZONING AND AMENDMENT OF THE CITY’S ZONING
MAP TO APPLY UPON ANNEXATION OF PROPERTIES WITHIN THE FROOM
RANCH SPECIFIC PLAN AREA (12165 AND 12393 LOS OSOS VALLEY ROAD)
(CODRON)
Recommendation:
Adopt Ordinance No. 1689 (2020 Series) entitled, “An Ordinance of the City Council of the
City of San Luis Obispo, California, establishing pre-zoning and amendment of the City’s
Zoning Map to apply upon annexation of properties within the Froom Ranch Specific Plan
Area (SPEC-0143-2017, SBDV-0955-2017, GENP-0737-2019, ANNX-0335-2020, EID-
0738-2019; Specific Plan Area 3; 12165 and 12393 Los Osos Valley Road).”
6. ADOPT THE REVISED CITY OF SAN LUIS OBISPO SECTION 125 PLAN
(IRONS / SUTTER)
Recommendation:
Adopt the 2020 City of San Luis Obispo Section 125 Plan Document and delegate authority
to the Human Resources Director to make subsequent administrative changes necessary to
maintain the Plan.
7. FIRE STATION ALERTING SYSTEM SERVICE AGREEMENT
(AGGSON / BLATTLER)
Recommendation:
1. Approve a five-year Fire Station Alerting System Sole Source Service Agreement with
U.S. Digital Designs, Inc. for $149,715; and
2. Authorize the Fire Chief to execute the service agreement.
San Luis Obispo City Council Agenda October 6, 2020 Page 4
8. UPDATE TO THE SAN LUIS OBISPO CLIMATE COALITION MEMORANDUM
OF UNDERSTANDING (HERMANN / READ)
Recommendation:
Approve the updated Memorandum of Understanding between the City of San Luis Obispo
and the San Luis Obispo Climate Coalition to continue a partnership to help achieve the
Climate Action objectives of the 2020 Climate Action Plan for Community Recovery and
related Major City Goal work program tasks.
9. APPROVE A MEMORANDUM OF UNDERSTANDING WITH SAN LUIS
COASTAL UNIFIED SCHOOL DISTRICT TO ACCEPT REIMBURSEM ENT FOR
CHILDCARE DURING DISTANCE LEARNING (AVAKIAN / BURGER)
Recommendation:
Approve the proposed Memorandum of Understanding (MOU) with San Luis Obispo
Coastal Unified School District (SLCUSD) and authorize the City Manager to execute the
MOU implementing action taken at the City Council meeting on August 18, 2020 to accept
SLCUSD funding of up to $100 per student per week for the fall 2020 program (16-week
on-site childcare).
10. SECOND READING AND ADOPTION OF ORDINANCE NO. 1690 (2020 SERIES)
REZONING AND AMENDING THE SPECIFIC PLAN DESIGNATION FOR THE
PROPERTY AT 660 TANK FARM ROAD AND AMENDING THE AIRPORT AREA
SPECIFIC PLAN DESIGNATION FOR 3985 BROAD STREET (CODRON / COREY)
Recommendation:
Adopt Ordinance No. 1690 (2020 Series) rezoning and amending the Specific Plan
Designation for the property at 660 Tank Farm Road and amending the Airport Area
Specific Plan Designation for 3985 Broad Street.
11. APPROVAL OF THE FINAL MAP FOR TRACT 3150, SAN LUIS RANCH, 1035
MADONNA ROAD (FMAP-0309-2020) (CODRON / LA CHAINE)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo,
California, approving the Final Map for Tract 3150 San Luis Ranch (1035 Madonna Road,
FMAP-0309-2020).”
San Luis Obispo City Council Agenda October 6, 2020 Page 5
12. CONSIDERATION OF AN AFFORDABLE HOUSING FUND REQUEST FROM
HASLO FOR ACQUISITION OF AN AT-RISK AFFORDABLE UNIT LOCATED
AT 1664 FOREMAN COURT AND ADMINISTRATIVE AMENDMENT OF THE
2019 ACTION PLAN OF HASLO’S 2019 COMMUNITY DEVELOPMENT BLOCK
GRANT AWARD FOR SPECIAL NEEDS ACQUISITION/AT-RISK OF
HOMELESSNESS CLIENTS PROJECT (CODRON / VERESCHAGIN)
Recommendation:
1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving the reallocation of Affordable Housing Funds upon the
market-value resale of the affordable housing unit located at 1664 Foreman Court to the
Housing Authority of the City of San Luis Obispo to assist with the acquisition of the
existing property;” and
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving a recommendation to the Department of Housing and
Urban Development to approve an Administrative Amendment to the 2019 Action Plan
to expand the Housing Authority of San Luis Obispo’s 2019 Community Development
Block Grant Award for a Special Needs Housing Acquisition Project to include
acquisition of property to house at-risk of homelessness clients.”
13. AUTHORIZATION TO AMEND THE 2020 CITY COUNCIL MEETING
CALENDAR (PURRINGTON)
Recommendation:
Amend the 2020 City Council Meeting Calendar to cancel the rescheduled Regular City
Council Meeting of Tuesday, November 10, 2020 and add a rescheduled Regular Meeting
on Tuesday, December 8, 2020.
14. TAX EXCHANGE AGREEMENT WITH COUNTY OF SAN LUIS OBISPO FOR
THE FIERO LAND AND EAST AIRPORT AREA ANNEXATIONS (CODRON)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting a negotiated exchange of tax revenue and annual tax
increment between the County of San Luis Obispo and the City of San Luis Obispo for
Annexation No. 81 (Fiero Lane and East Airport Areas), as represented in the staff report
and attachments dated October 6, 2020.”
San Luis Obispo City Council Agenda October 6, 2020 Page 6
PUBLIC HEARING AND BUSINESS ITEMS
15. 2020-21 CAPITAL IMPROVEMENT PLAN - KEY PROJECT UPDATE
(HORN / NELSON – 45 MINUTES)
Recommendation:
Receive and file a status report on key projects within the City's currently adopted Capital
Improvement Plan.
16. 2019-20 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT
DISTRICT (TBID) (HERMANN / CANO – 30 MINUTES)
Recommendation:
1. As recommended by the Tourism Business Improvement District (TBID) Board, receive
and approve the Tourism Business Improvement District (TBID) Board’s 2019-20
annual report; and
2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, declaring its intention to continue the San Luis Obispo Tourism
Business Improvement District, to continue the basis for and to levy the assessment for
the district, and to set a date for the public hearing on the district and the assessment for
2020-21” at the same rate as in the fiscal year 2019-20.
LIAISON REPORTS AND COMMUNICATIONS
(Not to exceed 15 minutes)
Council Members report on conferences or other City activities. At this time, any Council
Member or the City Manager may ask a question for clarification, make an announcement, or
report briefly on his or her activities. In addition, subject to Council Policies and Procedures,
they may provide a reference to staff or other resources for factual information, request staff to
report back to the Council at a subsequent meeting concerning any matter, or take action to
direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)
ADJOURNMENT
The next Regular City Council Meeting is scheduled for Tuesday, October 20, 2020 at 6:00 p.m.,
via teleconference.
San Luis Obispo City Council Agenda October 6, 2020 Page 7
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.
RECEIVED
SLO CITY CLERK
1010 Marsh St., San Lui
(805) 546-8208 • FA,
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. 1 am the principal
clerk of the printer of the New Tinges, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
C:V72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit: / II
er /i-
in the year 2020.
1 certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at an Luis Obispo, a 'forma, this
duty of , 2020.
Patricia Horton, New Times Legals
cr
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ORDINANCE NO. 1689 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SAN LUIS OBISPO, CALIFORNIA,
ESTABLISHING PRE -ZONING AND AMENDMENT
OF THE CITY'S ZONING MAP TO APPLY UPON
ANNEXATION OF PROPERTIES WITHIN THE FROOM
RANCH SPECIFIC PLAN AREA (SPEC-0143-2017,
SBDV-0955.2017, GENP-0737-2019, ANNX-0335-
2020, EID-0738-2019; SPECIFIC PLAN AREA 3; 12165
AND 12393 LOS OSOS VALLEY ROAD)
NOTICE IS HEREBY GIVEN that the City Council of the City
of San Luis Obispo, California, at its Regular Meeting of
September 15, 2020, introduced the above titled ordinance
upon a motion by Council Member Christianson, second by
Council Member Pease, and on the following roll call vote:
AYES: Council Member Christianson, Pease,
Stewart, Vice Mayor Gomez, and Mayor
Harmon
NOES: None
Of4inance Ng An Ordinance
establishing pre -zoning and amendment of the City's
Zoning Map to apply upon annexation of properties
within the Froom Ranch Specific Plan area (12165 and
12393 Los Osos Valley Road), consisting of the following
zoning designations: R-3-SP (Medium -High Density
Residential),'R-4-SP (High Density Residential), C-R-SP
(Retail Commercial), PF-SP (Public Facilities), and C/OS-SP
(Conservation/Open Space), consistent with the approved
Froom Ranch Specific Plan.
A full and complete copy ofthe Ordinance will b6 available
for inspection as part of the published agenda packet for
the October 6, 2020 Council Meeting, or you may call (805)
781-7100 for more information.
NOTICE IS HEREBY GIVEN that the City Council of the City
of San Luis Obispo will consider adopting the Ordinance at
its Regular Meeting of October 6, 2020 at 6:00 p.m. While
the Council encourages public participation, growing
concern about the COVID-19 pandemic has required that
public meetings be held via teleconference. Meetings can
be viewed on Government Access Channel 20 or streamed
live from the City's YouTube channel at http://yoLitube.slo.
city. Public comment, prior to the start of the meeting,
may be submitted in writing to the City Clerk's Office, 990
Palm Street, San Luis Obispo, CA 93401 or by email to
emailcouncil®slocity.org.
Teresa Purrington,
City Clerk
October 1, 2020
RECEIVED
0c], 0. 6 2020
SLO CITY CLERIC
Em
1010 Marsh St., San Lui:
(805) 546-8208 • FA)
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STNFE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid, I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Tinies, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit: cc
in the year 2020.
.1 certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dates{ at San Luis Obis al'fnrtlia, this
day -of 6C4 , 2020.
Patricia Horton, New Times Legals
Vcvr wAugK5
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Ad m & Pfl Sollul/`NTMG Admio NTMG Offi,013USINGSSTublic N,t,c /Pr f of Pub
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ORDINANCE NO. 1690 (2020SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO, CALIFORNIA, REZONING AND
AMENDING THE SPECIFIC PLAN DESIGNATION FOR
THE PROPERTY AT 660 TANK FARM ROAD FROM
BUSINESS PARK WITH SPECIFIC PLAN OVERLAY (BP-
SP) TO COMMUNITY COMMERCIAL WITH SPECIFIC
PLAN AND SPECIAL FOCUS OVERLAY (CC-SP-SF)
AND AMENDING THE AIRPORT AREA SPECIFIC
PLAN DESIGNATION FOR 3985 BROAD STREET TO
COMMUNITY COMMERCIAL WITH SPECIAL FOCUS
AREA (C-C-SP-SF) AND MAKING ASSOCIATED
AMENDMENTS TO THE AIRPORT AREA SPECIFIC
PLAN TO BE CONSISTENT WITH THE PROPOSED
NORTHWEST CORNER ASSISTED LIVING PROJECT,
AND WITH THE GENERAL PLAN AS AMENDED
NOTICE IS HEREBY GIVEN that the City Council of the City
of San Luis Obispo, California, at its Regular Meeting of
September 15, 2020, introduced the above titled ordinance
upon a motion by Council Member Christianson, second
by Vice Mayor Gomez, and on the following roll call vote:
AYES: Council Member Christianson, Stewart, Vice
Mayor Gomez, and Mayor Harmon
RECUSED: Council Member Pease
Q,�jirig_nce Na 189012820 Sefiosl — On September 15, 2020,
the City Council voted 4:0:1 (one Council Member recused)
to adopt a Resolution (Resolution No. 11166 (2020 Series))
and to introduce an Ordinance to rezone and amend the
Airport Area Specific plan to approve a subdivision and
development plan for an assisted living facility project
known asthe Northwest Corner project (NWC).This action
is a follow up 2nd reading to adopt Ordinance No. 1690
which rezones and amends Specific Plan designations, as
delineated in the above rezoning and Specific Plan Exhibit,
and as described in the above Ordinance Title.
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A full and complete copy of the Ordinance will be available
for inspection as part of the published agenda packet for
the October 6, 2020 Council Meeting, or you may call (805)
781-7100 for more information.
NOTICE IS HEREBY GIVEN that the City Council of the City
of San Luis Obispo will consider adopting the Ordinance at
its Regular Meeting of October 6, 2020 at 6:00 p.m. While
the Council encourages public participation, growing
concern about the COVID-19 pandemic has required that
public meetings be held via teleconference. Meetings
can be viewed on Government Access Channel 20 or
streamed live from the City's YouTube channel at http://
youtube.slo.city. Public comment, prior to the start of the
meeting, may be submitted in writing to the City Clerk's
Office, 990 Palm Street, San Luis Obispo, CA 93401 or by
email to emailcouncil@slocity.org.
Teresa Purrington,
City Clerk
October 1, 2020
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Tinies, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
in the year 2020.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at Sa Luis Obis O, alif rain, this
day— 2,R , 2020•
pa� "
Patricia Horton, New Times Legals
G 1�t� V1"` K ClV Afi�Y� W 6` ,5
Admiii I'rnonal%•N'I'M(i ndniiNNTMc� (11 PICu•'anSINr:S$AL61K P1elzeYlTwrut 1'al,
Proof of Publication of
nECEIVeD
SEP 3 0 2020
SLC C-ry CLERK
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SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested
persons to participate in a public meeting on Tuesday,
October 6, 2020, at 6:00 p.m. While the Council encourages
public participation, growing concern about the COVID-19
pandemic has required that public meetings be held via
teleconference. Meetings can be viewed on Government
Access Channel 20 or streamed live tram the City's YouTube
Channel at httpJ/youtube.slo.city. Public comment, prior to
the start of the meeting, may be submitted in writing via U.S.
Mail delivered to the City Clerk's office at 990 Palm Street,
San Luis Obispo, CA 93401 or by email to emailcouncil®
slocity.org.
Public Hearing Item:
• A Public Hearing to receive and file the San Luis Obispo
Tourism Business Improvement District (TBID) 2019-20
Annual Report as recommended bythe SLO TBID Board,
and considerthe adoption of a resolution of intentto levy
and collect TBID assessments in fiscal year 2020-21 at
the same rate as 2019-20.
For more information, contact Molly Cano, Tourism
Manager, for the City lsAdministration Department at (805)
781-7165 or by email, mcano®slocityorg
The City Council may also discuss other hearings or
business items before or after the items listed above. If you
challenge the proposed project in court, you may be limited
to raising only those issues you or someone else raised at
the public hearing described in this notice, or in written
correspondence delivered to the City Council at, or prior to,
the public hearing.
Reports forthis meeting will be available for review online at
www.slocitV.org no later than 72 hours prior to the meeting.
Please call the City Clerk's Office at (805) 781-7100 for more
information. The City Council meeting will be televised live
on Charter Cable Channel 20 and live streaming on the City's
YouTube channel httpsj/youtube.slo.city.
Teresa Purrington
City Clerk
City of San Luis Obispo
September 24, 2020
BLANK PAGE
This page is intended to be blank so that you can print double-sided.
San Luis Obispo Page 1
Tuesday, September 15, 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,
September 15, 2020 at time 6:00 p.m. by Mayor Harmon, with all Members present via
teleconference.
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.
PRESENTATIONS
1. PAVEMENT TO PARKS PRESENTATION (HARMON – 5 MINUTES)
Peter Williamson, Employer Outreach Coordinator with SLO Rideshare, presented the
PowerPoint regarding Pavement to Parks Program.
2. NATIONAL DRIVE ELECTRIC WEEK PROCLAMATION (HARMON – 5 MINUTES)
Mayor Harmon presented a Proclamation for National Drive Electric week to Barry Rands,
representing SLO Climate Coalition.
APPOINTMENTS
3. ADVISORY APPOINTMENTS FOR UNSCHEDULED VACANCIES (PURRINGTON)
City Clerk Purrington presented the contents of the report.
Public Comment:
None
---End of Public Comments---
Item 4
San Luis Obispo City Council Minutes of September 15, 2020 Page 2
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE
MAYOR GOMEZ, CARRIED 5-0 to appoint Ashley Mayou to the Architectural Review
Commission, Karen Edwards and Wendy McFarland to the Cultural Heritage Committee and
David Smith to the Tourism Business Improvement District Board.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
None
---End of Public Comment---
CONSENT AGENDA
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER PEASE, CARRIED 5-0 to approve Consent Calendar Items 3 thru 8.
4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
5. MINUTES REVIEW - AUGUST 28, 2020 AND SEPTEMBER 1, 2020 CITY
COUNCIL MINUTES (PURRINGTON)
CARRIED 5-0, to approve the minutes of the City Council meeting held on August 28,
2020 and September 1, 2020.
6. BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF
INTEREST CODE (HERMANN / CHRISTIAN)
CARRIED 5-0, to adopt Resolution No. 11163 (2020 Series) entitled “A Resolution of the
City Council of the City of San Luis Obispo, California amending the City’s Conflict of
Interest Code.”
7. 2019 INTEGRATED REGIONAL WATER MANAGEMENT PLAN
(FLOYD / BOERMAN / METZ)
CARRIED 5-0, to adopt Resolution No. 11164 (2020 Series) entitled “A Resolution of the
City Council of the City of San Luis Obispo, California adopting the 2019 San Luis Obispo
County Integrated Regional Water Management (IRMW) Plan and finding that the project is
statutorily exempt from Section 21000 et seq. of the California Public Resources Code, the
California Environmental Quality Act, pursuant to Section 15262 of the California
Environmental Quality Act Guidelines.”
8. FY 2020 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT
APPLICATION (CANTRELL / ELLSWORTH)
CARRIED 5-0, to:
1. Authorize staff to submit an application for the 2020 Edward Byrne Memorial Justice
Assistance Grant in the amount of $11,761; and
2. If the grant is awarded, authorize the City Manager to execute necessary grant documents
and direct the appropriation of monies into the accounts required to administer the grant.
Item 4
San Luis Obispo City Council Minutes of September 15, 2020 Page 3
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
9. A PUBLIC HEARING TO CONSIDER THE FROOM RANCH PROJECT
ENTITLEMENTS, CERTIFICATION OF THE FINAL ENVIRONMENTAL
IMPACT REPORT, AND INTRODUCTION AN ORDINANCE AMENDING THE
CITY’S ZONING MAP UPON ANNEXATION OF PROPERTIES WITHIN THE
FROOM RANCH SPECIFIC PLAN AREA (CODRON – 90 MINUTES)
Council Members Christianson, Pease, Stewart, and Mayor Harmon noted their Ex Parte
Communications regarding the project. Vice Mayor Gomez reported having no Ex Parte
Communications.
Community Development Director Michael Codron and Contract Planner Emily Creel,
SWCA Consultants provided an in-depth staff report and responded to Council questions.
RECESS
Council recessed at 8:40 p.m. and reconvened at 8:55 p.m., with all Council Members
present.
Victor Montgomery, RRM and Mark DeLotto, Villagio presented a PowerPoint on behalf of
the Applicant.
Public Comments:
Alana Reynolds
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER PEASE, CARRIED 5-0 to:
1. Adopt Resolution No 11165 (2020 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, certifying the Final Environmental Impact
Report (EIR) for the Froom Ranch Specific Plan Project, adopting associated findings
and statement of overriding considerations, and approving the Froom Ranch Specific
Plan, General Plan Amendment, Pre-Zoning, Vesting Tentative Tract Map #3106, and
initiation of the annexation process (SPEC-0143-2017, SBDV-0955-2017, GENP-0737-
2019, ANNX-0335-2020, EID-0738-2019; Specific Plan Area 3; 12165 and 12393 Los
Osos Valley Road);” and
2. Introduce Ordinance 1689 (2020 Series) entitled, “An Ordinance of the City Council of
the City of San Luis Obispo, California, establishing pre-zoning and amendment of the
City’s Zoning Map to apply upon annexation of properties within the Froom Ranch
Specific Plan Area (SPEC-0143-2017, SBDV-0955-2017, GENP-0737-2019, ANNX-
0335-2020, EID-0738-2019; Specific Plan Area 3; 12165 and 12393 Los Osos Valley
Road).”
Item 4
San Luis Obispo City Council Minutes of September 15, 2020 Page 4
With the following Additional Findings added:
Development Above the 150-Foot Elevation
▪ The storage or former quarry area in the northwest corner of the Specific Plan has
been disturbed by mining uses for many years, with numerous changes in elevation
and ground materials due to quarrying activities and use of the site for equipment
and materials storage; and
▪ This use over the years has resulted in the site having very limited habitat value;
and
▪ Re-grading and proper soil compaction of the site, relocating the historic Froom
Ranch buildings, developing a trailhead park which also serves neighborhood
needs, addressing the need for significant landscaping and habitat enhancement,
and other efforts, creates a particular burden on this portion of the Froom Ranch
Specific Plan.
Reconfiguration of the Agriculture/Open Space Easement
▪ The project sponsors are offering a number of public benefits with the project,
including designation and permanent protection of substantial open space in the
sensitive Upper Terrace (Lot 1), restoration of four historic structures, development
of a public trailhead park, amendment and enlargement of an onsite agricultural
conservation easement, and development of a re-established Froom Creek corridor.
Additional Overriding Considerations:
▪ Cultural & Historic Resources: The project avoids impacts to recorded prehistoric
sites and archaeologically sensitive areas within the project site by limiting most
development below the 150-foot contour elevation. The project will retain and
adaptively reuse four existing historic buildings and structures within the project
consistent with Secretary of the Interior’s Standards for the Treatment of Historic
Properties with Guidelines for the Preserving, Rehabilitating, Restoring and
Reconstructing Historic Buildings. These include the following buildings and
structures – the Round-nose Dairy Barn, the Main Residence, the Creamery/House,
and the Granary Building. All historic buildings and structures will be documented
per Historic American Buildings Survey (HABS) Level II documentation prior to
relocation or removal (Refer to FEIR Section 3.5.3.3 and FRSP Section 3.3.1).
▪ Sustainability: The FRSP includes a robust series of goals, polices, and programs
to reduce greenhouse gas emissions, operational mobile-source emissions, and
vehicle miles traveled (VMT) to provide a more sustainable community. Programs
include use of recycled construction materials, water conservation measures,
reliance principally on electricity for most project operations, solar photo-voltaic
systems for new buildings, electric vehicle charging stations, and use of an electric
shuttle for Villaggio. (refer to Final EIR Section 3.3, Table 3.3-9, Air Quality and
Green House Gas Emissions and FRSP Section 4.7).
▪ Economic Public Benefits: The project will provide significant economic benefits
to the public from a variety of one time and continuing revenue sources. One-time
revenue sources include activities such as construction jobs and purchase of
construction materials and supplies. Continuing revenue sources include property
taxes, sales taxes on locally procured materials and supplies and other revenues.
Adding Condition 93
▪ Regarding the inclusion of dedicated bikeway on one or both sides of Local Road A.
Item 4
San Luis Obispo City Council Minutes of September 15, 2020 Page 5
10. A PUBLIC HEARING TO INTRODUCE AN ORDINANCE REZONING AND
AMENDING THE SPECIFIC PLAN DESIGNATION FOR THE PROPERTY AT
660 TANK FARM ROAD AND AMENDING THE AIRPORT AREA SPECIFIC
PLAN DESIGNATION FOR 3985 BROAD STREET; CONSIDERATION OF A
GENERAL PLAN AMENDMENT APPROVING DEVELOPMENT OF AN
ASSISTED LIVING FACILITY AND CONSIDERATION OF A MITIGATED
NEGATIVE DECLARATION ENVIRONMENTAL DETERMINATION (CODRON /
COREY – 60 MINUTES)
Council Member Pease indicated she would be recusing herself as her husband owns
property across the street from the project. Council Member Pease muted her mic and
turned off her camera.
Council Members Christianson, Stewart, Vice Mayor Gomez and Mayor Harmon reported
having no Ex Parte Communications.
Community Development Director Michael Codron and Contract Planner Brandi
Cummings, SWCA Consultants provided an in-depth staff report and responded to Council
questions.
The applicant’s representative, Carol Florence with Oasis Associates, presented a
PowerPoint of the project.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
VICE MAYOR GOMEZ, CARRIED 4-0-1 (COUNCIL MEMBER PEASE RECUSED) to:
1. Adopt Resolution No. 11166 (2020 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, approving the General Plan Amendment for 660
Tank Farm Road, Vesting Tentative Tract Map, Creek Setback Exception, and Major
Development Review approving development of an Assisted Living Facility and adopting
a Mitigated Negative Declaration of Environmental Review as represented in the City
Council agenda report and attachments dated September 15, 2020 (660 Tank Farm Road,
3985 Broad Street; EID-1484-2018, SPEC-1482-2018, SBVD-1483-2018, ARCH-1486-
2018);” and
2. Introduce Ordinance No. 1690 (2020 Series) entitled, “An Ordinance of the City Council
of the City of San Luis Obispo, California, rezoning and amending the Specific Plan
Designation for the property at 660 Tank Farm Road from Business Park with Specific
Plan Overlay (BP-SP) to Community Commercial With Specific Plan And Special Focus
Overlay (CC-SP-SF) and amending the Airport Area Specific Plan Designation for 3985
Broad Street to Community Commercial with Special Focus Area (C -C-SP-SF) and
making associated amendments to the Airport Area Specific Plan to be consistent with
the proposed Northwest Corner Assisted Living Project, and with the General Plan as
amended.”
Item 4
San Luis Obispo City Council Minutes of September 15, 2020 Page 6
With the following revised Condition 46:
46. The project shall make efforts to encourage bicycle and transit users. To this end, the
project shall include the following:
• Transit – The project applicant shall construct a bus turnout per City Engineering
Standard 4920 along Broad Street frontage at a location approved by the City Transit
and Transportation Divisions.immediately north of the new ingress/egress driveway.
Transit stop design and amenities (i.e. flag sign, bench, shelter) shall be provided to
the satisfaction of the City Transit Manager and Public Works Director. The project
applicant shall demonstrate that a good faith effort has been made to coordinate with
SESLOC representatives to confirm that the transit stop placement and design is
acceptable to both parties.
• Bike Racks – the following additional elements shall be installed to attract the use of
bicyclists: a) bike racks shall be located as close to building entrances as is practical;
b) at each bike each location, protective rain/sun canopies shall be installed, as well as
security lighting.
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Council Member Stewart reported out on the CAPSLO board’s virtual tour regarding the energy
and veterans’ programs.
ADJOURNMENT
The meeting was adjourned at 10:40 p.m. The next Regular City Council Meeting is scheduled
for Tuesday, October 6, 2020 at 6:00 p.m., via teleconference.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2020
Item 4
Department Name: Community Development
Cost Center: 4003
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Shawna Scott, Senior Planner
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1689 (2020
SERIES) ESTABLISHING PREZONING AND AMENDMENT OF THE
CITY’S ZONING MAP TO APPLY UPON ANNEXATION OF PROPERTIES
WITHIN THE FROOM RANCH SPECIFIC PLAN AREA (12165 AND 12393
LOS OSOS VALLEY ROAD) CONSISTING OF THE FOLLOWING ZONING
DESIGNATIONS: R-3-SP (MEDIUM-HIGH DENSITY RESIDENTIAL), R-4-
SP (HIGH DENSITY RESIDENTIAL), C-R-SP (RETAIL COMMERCIAL), PF-
SP (PUBLIC FACILITIES), AND C/OS-SP (CONSERVATION OPEN SPACE)
RECOMMENDATION
Adopt Ordinance No. 1689 (2020 Series) (Attachment A) establishing pre-zoning and
amendment of the City’s Zoning Map to apply upon annexation of properties within the Froom
Ranch Specific Plan area consisting of the following zoning designations: R-3-SP (Medium-
High Density Residential), R-4-SP (High Density Residential), C-R-SP (Retail Commercial), PF-
SP (Public Facilities), and C/OS-SP (Conservation/Open Space), consistent with the approved
Froom Ranch Specific Plan.
DISCUSSION
On September 15, 2020, the City Council voted 5:0 to certify the Final Envir onmental Impact
Report (EIR) for the Froom Ranch Specific Plan, approve the Froom Ranch Specific Plan and
associated entitlements including a Vesting Tentative Tract Map and General Plan Amendment,
and introduce Ordinance No. 1689, establishing pre-zoning and amendment of the City’s Zoning
Map to apply upon annexation of subject properties consistent with the approved Froom Ranch
Specific Plan.
Policy Context
As discussed in the Council Agenda Report dated September 15, 2020, the General Plan Land
Use Element identifies the subject parcels as Madonna on LOVR (SP-3, also known as Froom
Ranch). The parcels are located within the City’s Sphere of Influence (SOI), planned for growth
under Land Use Element SP-3, planned for annexation to the City consistent with the General
Plan, and subject to Local Agency Formation Commission (LAFCO) review.
Item 5
The project is based on policy direction included in the General Plan, specifically Land Use
Element Policy 8.1.5, which identifies the Froom Ranch Specific Plan area as SP-3, subject to
policies for the development of a specific plan and certain broad development parameters and
principles. The certified Final EIR identified potential inconsistency with 25 City General Plan
policies, and a detailed analysis of the project’s consistency with these policies is included in the
August 12, 2020 Planning Commission Agenda Report, which was included in the September
15, 2020 Council Agenda Package. In the September 15, 2020 Resolution, the City Council
found that the Froom Ranch project was consistent with the City’s General Plan and related
policies and standards, consistent with the Planning Commission’s recommendation regarding
General Plan consistency and approval of the project.
Public Engagement
Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s
Municipal Code, the project was noticed per the City’s notification requirements for each public
hearing associated with the project. Newspaper legal advertisements were posted in the New
Times ten days prior to the hearing. Additionally, postcards were sent to both tenants and owners
of properties located within 300 feet of the project site ten days before the hearing. The City
maintained an Interested Parties list and provided direct notification of project hearings to
individuals on the list. Notices of availability of the Draft EIR and Final EIR were sent to
Interested Parties and Responsible Agencies. A postcard notification of the September 15, 2020
City Council hearing and August 12, 2020 Planning Commission hearing was provided to every
person, organization, and agency who provided comments on the Draft EIR.
CONCURRENCE
The City’s review of the Froom Ranch Specific Plan has involved all City departments involved
in the development review process. Conditions of approval have been identified and mitigation
measures will be implemented to ensure that the project is carried out in a manner that is
consistent with City standards. In addition to further consultation with the City Public Works
Transportation Division regarding potential options for additional bicycle facilities within the
Specific Plan area (as described in the September 15, 2020 Council agenda packet, pages 68 and
69), key issues evaluated by Engineering, Utilities, Fire and Transport ation are summarized in
the August 12, 2020 Planning Commission agenda packet, on page 44. The Airport Land Use
Commission reviewed the project in July 2020 and determined that the project is consistent with
the Airport Land Use Plan.
CONSISTENCY COVID-19 ORDERS AND CURRENT FISCAL CONTINGENCY PLAN
This activity is presently allowed under the State and Local emergency orders associated with
COVID-19. This project and associated staff work will be reimbursed by the applicant directly or
indirectly through fees and is therefore consistent with the guidance of the City’s Fiscal Health
Contingency Plan.
Item 5
ENVIRONMENTAL REVIEW
On September 15, 2020, the City Council adopted Resolution No. 11165 (2020 Series),
certifying the Final Environmental Impact Report for the project and adopting California
Environmental Quality Act (CEQA) Findings and Statement of Overriding Considerations, and
adopting the Mitigation, Monitoring, and Reporting Program for the project. A Notice of
Determination was filed with the San Luis Obispo Clerk Recorder’s Office on September 16,
2020.
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:
Total N/A
The applicant provided funds for the use of consultant support, including the management,
evaluation, and processing of the Froom Ranch Specific Plan project and preparation of the
associated EIR, Findings, and Statement of Overriding Considerations. Entitlement fees for the
processing of the Vesting Tentative Tract Map were received by the applicant, consistent with
the City’s adopted fee schedule.
In addition, the proposed land uses are mostly consistent with the land uses identified in the Land
Use Element of the City’s General Plan. When the General Plan was adopted, a fiscal analysis
was prepared that concluded that the City’s land use plans are fiscally balanced, meaning that on
balance the costs of development will be offset by revenue from sales tax, property tax, transient
occupancy tax, and other revenues generated by the project. As a result, the approval of the
Froom Ranch Specific Plan is expected to have neutral fiscal impact on the City’s Gener al Fund.
ALTERNATIVES
1. Modify the proposed ordinance. The City Council may make minor, non-substantive
changes to the proposed Ordinance for the staff to incorporate in the final documents. Any
material changes to the Final Ordinance would require further review by staff and the
Planning Commission followed by re-introduction of the Ordinance by the Council.
Item 5
Attachments:
a - Ordinance No. 1689 (2020 Series)
b - COUNCIL READING FILE - Exhibit A to Ordinance No. 1689
Item 5
O 1689
ORDINANCE NO. 1689 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING PRE-ZONING AND
AMENDMENT OF THE CITY’S ZONING MAP TO APPLY UPON
ANNEXATION OF PROPERTIES WITHIN THE FROOM RANCH
SPECIFIC PLAN AREA (SPEC-0143-2017, SBDV-0955-2017, GENP-0737-
2019, ANNX-0335-2020, EID-0738-2019; SPECIFIC PLAN AREA 3; 12165
AND 12393 LOS OSOS VALLEY ROAD)
WHEREAS, City General Plan Land Use Element Policies 1.13.3 (Annexation Purpose
and Timing), 1,13,6 (Required Plans), and 8.1.1 (Specific Plan/General Plan Amendment) require
the preparation of a Specific Plan for the Froom Ranch (Madonna on LOVR) area prior to
annexation and further development; and
WHEREAS, a Draft Specific Plan has been prepared for the Froom Ranch (Madonna of
LOVR) area pursuant to the General Plan and the State Government Code; and
WHEREAS, on August 12, 2020 the Planning Commission held a public hearing to
consider the recommendation of staff and consider the Specific Plan map, text, and necessary
changes to the General Plan Map and Zoning Map to implement the Specific Plan for the purpose
of making a recommendation to the City Council; and
WHEREAS, on August 12, 2020 the Planning Commission recommended that the City
Council certify the Final Environmental Impact Report for the Froom Ranch Specific Plan with
findings of significant environmental effects, mitigation measures, and the statement of overriding
considerations; and
WHEREAS, on September 15, 2020, the City Council held a public hearing to consider
the recommendations of the Planning Commission and staff, and to consider the Specific Plan
map, text, and necessary changes to the General Plan Map and Text and Zoning Map to implement
the Specific Plan; and
WHEREAS, the Specific Plan is consistent with the City’s General Plan, as amended; and
WHEREAS, as a result of its deliberations, the City Council has decided to adopt the
Froom Ranch Specific Plan and an ordinance is required to implement the zoning identified in the
Specific Plan.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Environmental Determination. The City Council has certified the Final
Environmental Impact Report (EIR) for the Froom Ranch Specific Plan and finds that the EIR
adequately addresses the potential significant environmental impacts of the proposed Zoning Map
amendment, and reflects the independent judgement of the City Council.
Item 5
Ordinance No. 1689 (2020 Series) Page 2
O 1689
SECTION 2. Zoning Map Amendment and Pre-zoning. The City Council hereby pre-
zones the properties as shown in “Exhibit A” such that the zoning becomes effective upon
annexation.
SECTION 3. Summary. A summary of this ordinance, approved by the City Attorney,
together with the names of Council members voting for and against, shall be published at least five
(5) days prior to its final passage in a newspaper published and circulated in the City of San Luis
Obispo. This ordinance shall go into effect at the expiration of thirty (30) days after its final
passage.
INTRODUCED on the 15th day of September 2020, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ________, 2020, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ______________________.
______________________________
Teresa Purrington
City Clerk
Item 5
Department Name: Human Resources
Cost Center: 3001
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Monica Irons, Human Resources Director
Prepared By: Nickole Sutter, Human Resources Manager
SUBJECT: ADOPT THE REVISED CITY OF SAN LUIS OBISPO SECTION 125 PLAN
RECOMMENDATION
Adopt the 2020 City of San Luis Obispo Section 125 Plan Document and delegate authority to
the Human Resources Director to make subsequent administrative changes necessary to maintain
the Plan.
DISCUSSION
A Section 125 Plan (“Plan”), also known as a Cafeteria Plan, is a written plan maintained by an
employer for employees that meets the specific requirements and regulations of Section 125 of
the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on
a pre-tax basis. Participants in a Cafeteria Plan must be permitted to choose among at least one
taxable benefit (such as cash) and one qualified benefit. The written plan must specifically
describe all benefits and establish rules for eligibility and elections. In order to allow pre-tax
benefits for employees, it is required to have a Plan established that qualifies as a “Cafeteria
Plan” within the meaning of the Section 125 of the Internal Revenue Code of 1986, as am ended.
The Plan’s benefits1 which an employee elects to receive must also be excludable from the
employee’s income under Section 125(a) and other applicable sections of the Internal Revenue
Code of 1986, as amended. If taken as a benefit, the employee generally receives two tax
advantages: 1) Employee contributions toward Cafeteria Plan benefits are made pre-tax; and 2)
Employer contributions toward an employee's Cafeteria Plan benefits are not taxed.
1 Each Participant may elect any one or more of the following optional Benefits:
• Health Flexible Spending Account
• Dependent Care Flexible Spending Account
• Group Medical Plan
• Group Dental Plan
• Group Vision Plan
• Hospital Indemnity Insurance
• Cancer Insurance
• Voluntary Benefit(s)
• Intensive Care Insurance
• Specified Health Event
Item 6
The last time the City’s Section 125 Plan document was revised was in January 2010
(Attachment A). This year Human Resources staff worked with Igoe, the company the City uses
to administer Section 125 Plan benefits for unreimbursed medical expenses, to review and update
the City’s Section 125 Plan (Attachment B). The revised Plan aligns with City Memorandum of
Agreements for represented employee groups and resolutions around salary and benefits for
unrepresented employee groups. The most substantive change to the Plan clarifies that the
employee’s Health Flex Allowance (the amount the City contributes towards health insurance),
only applies to medical insurance and if the cost of a medical premium is less than the City’s
adopted Health Flex contribution, there is no cash back provided. This is consistent with
negotiated agreements with represented employee groups and resolutions over the last few years.
The changes do not affect the day-to-day administration of the Health Flex Allowance or impact
employees in any way. The updated Plan complies with regulatory requirements and aligns with
benefit plan years that are calendar, not fiscal year, and provides clarity moving into the annual
open enrollment of benefits period.
Previous delegation of authority for maintenance of the Plan was not clear, so st aff requests
Council adopt the City of San Luis Obispo Section 125 Plan and delegate authority to the Human
Resources Director to make future changes to the Section 125 Plan document to align with
benefit changes approved by Council through the negotiation process. This will ensure that the
Section 125 Plan remains accurate without a delay of seeking approval from Council.
Policy Context
The Section 125 Plan aligns with benefits outlined in Memorandum of Agreements for
represented employee groups and resolutions around salary and benefits for unrepresented
employee groups adopted by Council.
Public Engagement
This item is on the agenda for the October 6, 2020 City Council meeting and will follow all
required postings and notifications. The public may have an opportunity to 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 Section 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Item 6
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
The recommended action before Council does not have a fiscal impact. The Plan does provide
tax benefits to the City and its employees and all cost associated with the adopted Health Flex
contributions are included in the annual budget appropriation as specified in the various MOA’s
and/or related employment resolutions.
ALTERNATIVES
The City Council could choose not to adopt the revised Section 125 Plan or not approve
delegating signing authority to the Human Resources Director. This is not recommended as
the previous Plan document is outdated and delegating authority to the Human Resources
Director for maintenance of the Plan is consistent with other benefit plan documents.
Attachments:
a - 2010 Section 125 Plan Document
b - 2020 Section 125 Plan Document
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Item 6
City of San Luis Obispo
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
City of San Luis Obispo Section 125 Plan
Plan Document
Amended and Restated January 01, 2020
Item 6
TABLE OF CONTENTS
I. ARTICLE - PLAN DEFINITIONS
II. ARTICLE - PARTICIPATION
01. ELIGIBILITY
02. EFFECTIVE DATE OF PARTICIPATION
03. APPLICATION TO PARTICIPATE
04. TERMINATION OF PARTICIPATION
05. TERMINATION OF EMPLOYMENT
06. REINSTATEMENT OF A FORMER PARTICIPANT
07. DEATH
III. ARTICLE - CONTRIBUTIONS TO THE PLAN
01. SALARY REDIRECTION
02. APPLICATION OF CONTRIBUTIONS
03. PERIODIC CONTRIBUTIONS
04. EMPLOYER CONTRIBUTIONS
IV. ARTICLE - BENEFITS
01. BENEFIT OPTIONS
02. HEALTH FLEXIBLE SPENDING ACCOUNT BENEFIT
03. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT BENEFIT
04. HEALTH INSURANCE BENEFIT
05. DENTAL INSURANCE BENEFIT
06. VISION INSURANCE BENEFIT
07. CANCER INSURANCE BENEFIT
08. HOSPITAL INDEMNITY INSURANCE BENEFIT
09. VOLUNTARY BENEFIT(S)
10. INTENSIVE CARE INSURANCE
11. SPECIFIED HEALTH EVENT
12. NONDISCRIMINATION REQUIREMENTS
13. NON-TAX DEPENDENT COVERAGE
V. ARTICLE - PARTICIPANT ELECTIONS
01. INITIAL ELECTIONS
02. SUBSEQUENT ANNUAL ELECTIONS
03. FAILURE TO ELECT
04. CHANGE IN STATUS
VI. ARTICLE - HEALTH FLEXIBLE SPENDING ACCOUNT
01. ESTABLISHMENT OF BENEFIT
02. DEFINITIONS
03. FORFEITURES
04. LIMITATION ON ALLOCATIONS
05. NONDISCRIMINATION REQUIREMENTS
06. COORDINATION WITH CAFETERIA PLAN
07. HEALTH FLEXIBLE SPENDING ACCOUNT CLAIMS
08. DEBIT AND CREDIT CARDS
VII. ARTICLE - DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
01. ESTABLISHMENT OF ACCOUNT
02. DEFINITIONS
03. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
04. INCREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
05. DECREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
Item 6
06. ALLOWABLE DEPENDENT CARE REIMBURSEMENT
07. ANNUAL STATEMENT OF BENEFITS
08. FORFEITURES
09. LIMITATION ON PAYMENTS
10. NONDISCRIMINATION REQUIREMENTS
11. COORDINATION WITH CAFETERIA PLAN
12. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT CLAIMS
VIII. ARTICLE - ADMINISTRATION
01. PLAN ADMINISTRATION
02. EXAMINATION OF RECORDS
03. PAYMENT OF EXPENSES
04. INSURANCE CONTROL CLAUSE
05. INDEMNIFICATION OF ADMINISTRATOR
IX. ARTICLE - AMENDMENT OR TERMINATION OF PLAN
01. AMENDMENT
02. TERMINATION
X. ARTICLE - MISCELLANEOUS
01. PLAN INTERPRETATION
02. GENDER AND NUMBER
03. WRITTEN DOCUMENT
04. EXCLUSIVE BENEFIT
05. PARTICIPANT’S RIGHTS
06. ACTION BY THE EMPLOYER
07. EMPLOYER’S PROTECTIVE CLAUSES
08. NO GUARANTEE OF TAX CONSEQUENCES
09. INDEMNIFICATION OF EMPLOYER BY PARTICIPANTS
10. FUNDING
11. GOVERNING LAW
12. SEVERABILITY
13. CAPTIONS
14. CONTINUATION OF COVERAGE (COBRA)
15. FAMILY AND MEDICAL LEAVE ACT (FMLA)
16. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA)
17. QUALIFIED RESERVIST DISTRIBUTIONS
18. COMPLIANCE WITH HIPAA PRIVACY STANDARDS
19. COMPLIANCE WITH HIPAA ELECTRONIC SECURITY STANDARDS
20. MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT
21. GENETIC INFORMATION NONDISCRIMINATION ACT (GINA)
22. WOMEN’S HEALTH AND CANCER RIGHTS ACT
23. NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT
Appendix A
Employees electing medical coverage in the City’s plans shall receive a health flexallowance,as
defined by the Affordable Care Act (“ACA”) and shall purchase such coverage through theCity’s
Cafeteria Plan. If the health flex allowance is less than the cost of the medical plan, the employee
shall have the opportunity to pay the difference between the health flex allowance and the premium
cost on a pre-tax basis through theCity’s Cafeteria Plan. If the premium cost for medical coverage is
less than the health flexallowance, the employee shall not receive any unused health flex in the form
of cash or purchase additional benefits under the Cafeteria Plan.Less than full-time employees shall
receive a prorated share of the City’s contribution.
Item 6
City of San Luis Obispo
City of San Luis Obispo Section 125 Plan
INTRODUCTION
The City amends and restates this Plan as of January 01, 2020 with an original effective date of January 01, 2020. Its purpose is to provide
benefits for those Employees who shall qualify hereunder and their Dependents and beneficiaries. The concept of this Plan is to allow
Employees to elect between cash compensation or certain nontaxable benefit options as they desire. The Plan shall be known as the City of San
Luis Obispo Section 125 Plan (the "Plan").
The intention of the Employer is that the Plan qualify as a "Cafeteria Plan" within the meaning of Section 125 of the Internal Revenue Code of
1986, as amended, and that the benefits which an Employee elects to receive under the Plan be excludable from the Employee's income under
Section 125(a) and other applicable sections of the Internal Revenue Code of 1986, as amended.
01."Administrator" means the Employer, unless another person or entity has been designated by the Employer
pursuant to the Article titled: "Administration" to administer the Plan on behalf of the Employer. If the Employer is
the Administrator, the Employer may appoint any person, including but not limited to the Employees of the
Employer, to perform the duties of the Administrator. Any person so appointed shall signify acceptance by filing
written acceptance with the Employer. Upon the resignation or removal of any individual performing the duties of
the Administrator, the Employer may designate a successor.
02."Benefit" or "Benefit Options" means any of the optional benefit choices available to a Participant as outlined
in the Article titled: "Benefit Information".
03."Cafeteria Plan Benefit Dollars" means the amount available to Participants to purchase Benefit Options as
provided under the Article titled: "Benefit Information". Each dollar contributed to this Plan shall be converted into
one Cafeteria Plan Benefit Dollar.
04."Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time.
05."Compensation" means the amounts received as compensation by the Participant from the Employer during a
Plan Year.
06."Dependent" means any individual who qualifies as a dependent under an Insurance Contract for purposes of
coverage under that Contract only or under Code Section 152 (as modified by Code Section 105(b)). Any child of
a Plan Participant who is determined to be an alternate recipient under a qualified medical child support order
shall be considered a Dependent under this Plan.
"Dependent" shall include any Child of a Participant who is covered under an Insurance Contract, as defined in
the Contract, or under the Health Flexible Spending Account or as allowed by reason of the Affordable Care Act.
For purposes of the Health Flexible Spending Account, a Participant's "Child" includes his or her natural child,
stepchild, foster child, adopted child, or a child placed with the Participant for adoption. A Participant's Child will
be an eligible Dependent until reaching the limiting age of 26, without regard to student status, marital status,
financial dependency or residency status with the Employee or any other person. When the child reaches the
applicable limiting age, coverage will end at the end of the calendar year.
The phrase "placed for adoption" refers to a child whom the Participant intends to adopt, whether or not the
adoption has become final, who has not attained the age of 18 as of the date of such placement for adoption.
The term "placed" means the assumption and retention by such Employee of a legal obligation for total or partial
support of the child in anticipation of adoption of the child. The child must be available for adoption and the legal
process must have commenced.
07."Effective Date" means January 01, 2020.
08."Election Period" means the period, established by the Administrator, immediately preceding the beginning of
each Plan Year, such period to be applied on a uniform and nondiscriminatory basis for all Employees and
Participants. However, an Employee's initial Election Period shall be determined pursuant to the Article titled:
"Participant Elections".
09."Eligible Employee" means any Employee who has satisfied the provisions of the Section titled: "Eligibility".
An individual shall not be an "Eligible Employee" if such individual is not reported on the payroll records of the
Employer as a common law employee. In particular, it is expressly intended that individuals not treated as
common law employees by the Employer on its payroll records are not "Eligible Employees" and are excluded
from Plan participation even if a court or administrative agency determines that such individuals are common law
employees and not independent contractors.
An "Eligible Employee" shall exclude the following:
I. ARTICLE - PLAN DEFINITIONS
Item 6
Non-Resident Aliens
Leased Employees
10. "Employee" means any person who is currently or hereafter employed by the Employer.
11. "Employer" means City of San Luis Obispo and any successor which shall maintain this Plan; and any
predecessor which has maintained this Plan. In addition, where appropriate, the term Employer shall include any
Participating, or Adopting Employer.
12. "Insurance Contract" means any contract issued by an Insurer underwriting a Benefit, or any self-funded
arrangement providing any Benefit offered for health and welfare coverage to Eligible Employees of the
Employer.
13. "Insurance Premium Payment Plan" means the plan of benefits contained in the "Benefit Options" section of
this Plan, which provides for the payment of Premium Expenses.
14. "Insurer" means any insurance company that underwrites a Benefit or any self-funded arrangement under this
Plan.
15. "Key Employee" means an Employee described in Code Section 416(i)(1) and the Treasury regulations
thereunder.
16. "Participant" means any Eligible Employee who elects to become a Participant pursuant to the Section titled:
"Application to Participate" and has not for any reason become ineligible to participate further in the Plan.
17. "Plan" means the flexible benefits plan described in this instrument, including all amendments thereto.
18. "Plan Year" means the 12-month period beginning January 01 and ending December 31. The Plan Year shall
be the coverage period for the Benefits provided for under this Plan. In the event a Participant commences
participation during a Plan Year, then the initial coverage period shall be that portion of the Plan Year
commencing on such Participant's date of entry and ending on the last day of such Plan Year.
19. "Premium Expenses" or "Premiums" means the Participant's cost for the Benefits described in the Section
titled: "Benefit Options".
20. "Premium Expense Reimbursement Account" means the account established for a Participant pursuant to
this Plan to which part of his or her Cafeteria Plan Benefit Dollars may be allocated and from which Premiums of
the Participant shall be paid or reimbursed. If more than one type of insured Benefit is elected, sub-accounts
shall be established for each type of insured Benefit.
21. "Qualified Reservist" means a Participant of the plan who is a member of a reserve component such as: the
Army National Guard; the Air National Guard; the Army Reserve; the Navy Reserve; the Marine Corps Reserve;
the Air Force Reserve; the Coast Guard Reserve; the Reserve Corps of the Public Health Service; or as defined
37 U.S.C Section 101.
22. "Qualified Reservist Distribution" means a distribution to a Participant which includes a portion or the balance
in the Participant's Health Flexible Spending Account as described in the Article titled: "Qualified Reservist
Distribution".
23. "Run-out Period" means the set number of days after the plan year ends that allows you to submit claims for
eligible expenses incurred during the Plan Year.
24. "Salary Redirection" means the contributions made by the Employer on behalf of Participants pursuant to the
Section titled: "Salary Redirection". These contributions shall be converted to Cafeteria Plan Benefit Dollars and
allocated to the funds or accounts established under the Plan pursuant to the Participants' elections made under
the Article titled: "Participant Elections".
25. "Salary Redirection Agreement" means an agreement between the Participant and the Employer under which
the Participant agrees to reduce his or her Compensation or to forego all or part of the increases in such
Compensation and to have such amounts contributed by the Employer to the Plan on the Participant's behalf.
The Salary Redirection Agreement shall apply only to Compensation that has not been actually or constructively
received by the Participant as of the date of the agreement (after taking this Plan and Code Section 125 into
account) and, subsequently does not become currently available to the Participant.
26. "Spouse" means "spouse" as defined in an Insurance Contract, then, for purposes of coverage under that
Insurance Contract only, "spouse" shall have the meaning stated in the Insurance Contract. In all other cases,
"spouse" shall have the meaning stated under applicable federal or state law.
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01. ELIGIBILITY
An individual is eligible to participate in this Plan if the individual:
a. is an Eligible Employee as defined in the Article titled: "Definitions"
b. is working an average of 20 hours or more per week; and
c. is eligible for the group medical plan
02. EFFECTIVE DATE OF PARTICIPATION
An Eligible Employee shall become a Participant when the following condition(s) is/are met:
First of the month following date of hire; Group Term Life waiting period: Date of hire
03. APPLICATION TO PARTICIPATE
An Employee who is eligible to participate in this Plan shall, during the applicable Election Period, complete an
application to participate in a manner set forth by the Administrator. The election shall be irrevocable until the
end of the applicable Plan Year unless the Participant is entitled to change his or her Benefit elections pursuant
to the Section titled: "Change in Status".
An Eligible Employee shall also be required to complete a Salary Redirection Agreement during the Election
Period for the Plan Year during which he wishes to participate in this Plan. Any such Salary Redirection
Agreement shall be effective for the first pay period beginning on or after the Employee's effective date of
participation pursuant to the Section titled: "Effective Date of Participation".
Notwithstanding the foregoing, an Employee who is eligible to participate in this Plan and who is covered by the
Employer's insured Benefits under this Plan shall automatically become a Participant to the extent of the
Premiums for such insurance, unless the Employee elects, during the Election Period, not to participate in the
Plan.
04. TERMINATION OF PARTICIPATION
A Participant shall no longer participate in this Plan upon the occurrence of any of the following events:
a. Termination of employment. The termination of Participant's employment, subject to the provisions of
the Section titled: "Termination of Employment";
b. Death. The Participant's death, subject to the provisions of the Section titled: "Death"; or
c. Termination of the plan. The termination of this Plan, subject to the provisions of the Section titled:
"Termination".
05. TERMINATION OF EMPLOYMENT
If a Participant's employment with the Employer is terminated for any reason other than death, his or her
participation in the Benefit Options provided under the Section titled: "Benefit Options" shall be governed in
accordance with the following:
a. Insurance Benefit. With regard to Benefits which are insured, the Participant's participation in the Plan
shall cease, subject to the Participant's right to continue coverage under any Insurance Contract for which
premiums have already been paid.
b. Dependent Care FSA. With regard to the Dependent Care Flexible Spending Account, the Participant's
participation in the Plan shall cease and no further Salary Redirection contributions shall be made.
However, such Participant may submit claims for employment-related Dependent Care Expense
reimbursements for expenses within 90 days after the end of the Plan Year, limited by the balance in the
Participant's Dependent Care Flexible Spending Account as of the date of termination.
c. Health FSA, COBRA applicability. With regard to the Health Flexible Spending Account, the Participant
may submit claims for expenses that were incurred during the portion of the Plan Year for which
contributions to the Health Flexible Spending Account have already been made. Thereafter, the health
benefits under this Plan including the Health Flexible Spending Account, shall be applied and administered
consistent with such further rights that a Participant and his or her Dependents may be entitled to pursuant
to Code Section 4980B and the Section titled: "Continuation of Coverage" of the Plan.
06. REINSTATEMENT OF A FORMER PARTICIPANT
An Employee whose participation terminates and returns to an eligible status less than thirty days later may re-
enroll within thirty days of returning to an eligible status with a commencement date of the first of the month
following the adjusted eligibility date. An Employee who re-enrolls in a Health Flexible Spending Account or
Dependent Care Account after such time must re-enter the Plan and reinstate their original elections for that Plan
II. ARTICLE - PARTICIPATION
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Year with adjustments to the annual election amount as the Administrator deems necessary to prorate the
annual election amount over the remainder of the Plan Year. Expenses incurred by the employee during the time
that the employee was not a Participant will not be covered expenses unless COBRA was elected pursuant to
the Article titled: "Continuation of Coverage (COBRA)".
Any Employee who terminates employment and is rehired into an eligible status after thirty days from the date of
termination will be treated as a new enrollee under the Plan. If such Employee returns within the same Plan
Year, prior contributions made to the Health Flexible Spending Account and/or the Dependent Care Account will
be taken into consideration so as not to exceed Plan or IRS maximums.
07. DEATH
If a Participant dies, his or her participation in the Plan shall immediately cease. However, such Participant's
spouse or Dependents may submit claims for expenses or benefits for the remainder of the Plan Year or until the
Cafeteria Plan Benefit Dollars allocated to a particular specific benefit are exhausted. In no event may
reimbursements be paid to someone who is not a spouse or Dependent. If the Plan is subject to the provisions of
Code Section 4980B, then those provisions and related regulations shall apply for purposes of the Health
Flexible Spending Account.
Item 6
01. SALARY REDIRECTION
Subject to the provisions of the section titled "Employer Contributions," benefits under the Plan shall be financed
by Salary Redirections sufficient to support the benefits that a Participant has elected hereunder and to pay the
Participant's Premium Expenses. The salary administration program of the Employer shall be revised to allow
each Participant to agree to reduce his or her pay during a Plan Year by an amount determined necessary to
purchase the elected Benefit Options. The amount of such Salary Redirection shall be specified in the Salary
Redirection Agreement and shall be applicable for a Plan Year. Notwithstanding the above, for new Participants,
the Salary Redirection Agreement shall only be applicable from the first day of the pay period following the
Employee's entry date up to and including the last day of the Plan Year. These contributions shall be converted
to Cafeteria Plan Benefit Dollars and allocated to the funds or accounts established under the Plan pursuant to
the Participant's elections made under the Section titled: "Initial Elections".
Any Salary Redirection shall be determined prior to the beginning of a Plan Year (subject to initial elections
pursuant to the Section titled: "Initial Elections") and prior to the end of the Election Period and shall be
irrevocable for such Plan Year. However, a Participant may revoke a Benefit election or a Salary Redirection
Agreement after the Plan Year has commenced and make a new election with respect to the remainder of the
Plan Year, if both the revocation and the new election are on account of and consistent with a change in status
and such other permitted events as determined under the Article titled: "Participant Elections" and are consistent
with the rules and regulations of the Department of the Treasury. Salary Redirection amounts shall be
contributed on a pro rata basis for each pay period during the Plan Year. All individual Salary Redirection
Agreements are deemed to be part of this Plan and incorporated by reference hereunder.
02. APPLICATION OF CONTRIBUTIONS
As soon as reasonably practical after each payroll period, the Employer shall apply the Salary Redirection to
provide the Benefits elected by the affected Participants. Any contribution made or withheld for the Health
Flexible Spending Account or Dependent Care Flexible Spending Account shall be credited to such fund or
account. Amounts designated for the Participant's Premium Expense Reimbursement Account shall likewise be
credited to such account for the purpose of paying Premium Expenses.
03. PERIODIC CONTRIBUTIONS
Notwithstanding the requirement provided above and in other Articles of this Plan that Salary Redirections be
contributed to the Plan by the Employer on behalf of an Employee on a level and pro rata basis for each payroll
period, the Employer and Administrator may implement a procedure in which Salary Redirections are contributed
throughout the Plan Year on a periodic basis that is not pro rata for each payroll period. However, with regard to
the Health Flexible Spending Account, the payment schedule for the required contributions may not be based on
the rate or amount of reimbursements during the Plan Year.
04. EMPLOYER CONTRIBUTIONS
The Employer may provide non-elective contributions in the form of Employer Funding into the Health Flexible
Spending Account and Dependent Care Spending Account to the extent as described in the Section Titled:
"Limitation on Allocations". Such contributions may be prorated for Participants who begin participating in the
middle of the Plan Year. Contributions or matching contributions made to the Health Flexible Spending Account
and Dependent Care Spending Account generally do not count toward the annual contribution limit as described
in the Section Titled: "Limitation on Allocations".
III. ARTICLE - CONTRIBUTIONS TO THE PLAN
Item 6
01. BENEFIT OPTIONS
Each Participant may elect any one or more of the following optional Benefits:
Health Flexible Spending Account
Dependent Care Flexible Spending Account
In addition, each Participant shall have a sufficient portion of his or her Salary Redirections applied to the
following Benefits unless the Participant elects not to receive such Benefits:
Group Medical Plan
Group Dental Plan
Group Vision Plan
Hospital Indemnity Insurance
Cancer Insurance
Voluntary Benefit(s)
Intensive Care Insurance
Specified Health Event
02. HEALTH FLEXIBLE SPENDING ACCOUNT BENEFIT
Each Participant may elect to participate in the Health Flexible Spending Account option, in which case the
Article titled: "Health Flexible Spending Account" shall apply.
03. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT BENEFIT
Each Participant may elect to participate in the Dependent Care Flexible Spending Account option, in which case
the Article titled: "Dependent Care Flexible Spending Account" shall apply.
04. HEALTH INSURANCE BENEFIT
a. Coverage for Participant and Dependents. Each Participant may elect to be covered under a health
Insurance Contract for the Participant, his or her Spouse, and his or her Dependents.
b. Employer selects contracts. The Employer may select suitable health Insurance Contracts for use in
providing this health insurance benefit, which contracts will provide uniform benefits for all Participants
electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such health Insurance Contract shall be determined therefrom, and such Insurance Contract shall be
incorporated herein by reference.
05. DENTAL INSURANCE BENEFIT
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the
Employer's dental Insurance Contract. In addition, the Participant may elect either individual or family
coverage under such Insurance Contract.
b. Employer selects contracts. The Employer may select suitable dental Insurance Contracts for use in
providing this dental insurance benefit, which contracts will provide uniform benefits for all Participants
electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such dental Insurance Contract shall be determined therefrom, and such dental Insurance Contract shall
be incorporated herein by reference.
06. VISION INSURANCE BENEFIT
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the
Employer's vision Insurance Contract. In addition, the Participant may elect either individual or family
coverage.
b. Employer selects contracts. The Employer may select suitable vision Insurance Contracts for use in
providing this vision insurance benefit, which contracts will provide uniform benefits for all Participants
electing this Benefit.
IV. ARTICLE - BENEFITS
Item 6
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such vision Insurance Contract shall be determined therefrom, and such vision Insurance Contract shall be
incorporated herein by reference.
07. CANCER INSURANCE BENEFIT
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the
Employer's cancer Insurance Contract.
b. Employer selects contracts. The Employer may select suitable cancer Insurance Contracts for use in
providing this cancer insurance benefit, which contracts will provide uniform benefits for all Participants
electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such cancer Insurance Contract shall be determined therefrom, and such cancer Insurance Contract shall
be incorporated herein by reference.
08. HOSPITAL INDEMNITY INSURANCE BENEFIT
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the
Employer's hospital indemnity Insurance Contract.
b. Employer selects contracts. The Employer may select suitable hospital indemnity Insurance Contracts
for use in providing this hospital indemnity insurance benefit, which contracts will provide uniform benefits
for all Participants electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such hospital indemnity Insurance Contract shall be determined therefrom, and such hospital indemnity
Insurance Contract shall be incorporated herein by reference.
09. VOLUNTARY BENEFIT(S)
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under a
Voluntary Benefit Contract.
b. Employer selects contracts. The Employer may select suitable voluntary benefit Contracts for use in
providing this voluntary benefit, which contracts will provide uniform benefits for all Participants electing
this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such voluntary benefit Contract shall be determined therefrom, and such voluntary benefit Contract shall
be incorporated herein by reference.
10. INTENSIVE CARE INSURANCE
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under a
Intensive Care Insurance Contract.
b. Employer selects contracts. The Employer may select suitable Intensive Care Insurance Contracts for
use in providing this Intensive Care Insurance benefit, which contracts will provide uniform benefits for all
Participants electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such Intensive Care Insurance Contract shall be determined therefrom, and such Intensive Care Insurance
Contract shall be incorporated herein by reference.
11. SPECIFIED HEALTH EVENT
a. Coverage for Participant and/or Dependents. Each Participant may elect to be covered under a
Specified Health Event Contract.
b. Employer selects contracts. The Employer may select suitable Specified Health Event Contracts for use
in providing this Specified Health Event benefit, which contracts will provide uniform benefits for all
Participants electing this Benefit.
c. Contract incorporated by reference. The rights and conditions with respect to the benefits payable from
such Specified Health Event Contract shall be determined therefrom, and such Specified Health Event
Contract shall be incorporated herein by reference.
12. NONDISCRIMINATION REQUIREMENTS
a. Intent to be nondiscriminatory. It is the intent of this Plan to provide benefits to a classification of
employees which the Secretary of the Treasury finds not to be discriminatory in favor of the group in
whose favor discrimination may not occur under Code Section 125.
b. 25% concentration test. It is the intent of this Plan not to provide qualified benefits as defined under Code
Item 6
Section 125 to Key Employees in amounts that exceed 25% of the aggregate of such Benefits provided for
all Eligible Employees under the Plan. For purposes of the preceding sentence, qualified benefits shall not
include benefits which (without regard to this paragraph) are includible in gross income.
c. Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination or
possible taxation to Key Employees or a group of employees in whose favor discrimination is prohibited by
Code Section 125, it may, but shall not be required to, reduce contributions or non-taxable Benefits in
order to assure compliance with this Section. Any act taken by the Administrator under this Section shall
be carried out in a uniform and nondiscriminatory manner. If the Administrator decides to reduce
contributions or non-taxable Benefits, it shall be done in the following manner. First, the non-taxable
Benefits of the affected Participant (either an employee who is highly compensated or a Key Employee,
whichever is applicable) who has the highest amount of non-taxable Benefits for the Plan Year shall have
his or her non-taxable Benefits reduced until the discrimination tests set forth in this Section are satisfied or
until the amount of his or her non-taxable Benefits equals the non-taxable Benefits of the affected
Participant who has the second highest amount of non-taxable Benefits. This process shall continue until
the nondiscrimination tests set forth in this Section are satisfied. With respect to any affected Participant
who has had Benefits reduced pursuant to this Section, the reduction shall be made proportionately among
Health Flexible Spending Account Benefits and Dependent Care Flexible Spending Account Benefits, and
once all these Benefits are expended, proportionately among insured Benefits. Contributions which are not
utilized to provide Benefits to any Participant by virtue of any administrative act under this paragraph shall
be forfeited and deposited into the benefit plan surplus.
13. NON-TAX DEPENDENT COVERAGE
a. If (i) Employee Salary Redirections are made to fund Benefits under the Plan, and (ii) the Employer allows
a Participant to elect to cover a Non-Tax Dependent through the Participant’s coverage under group
Medical, Dental or Vision benefit(s), a Participant who elects to participate in the Salary Redirection
program may pay on a pre-tax basis through salary reduction contributions the Participant’s portion of the
premium cost of coverage under the Employer’s Medical, Dental or Vision Benefits, provided that the full
fair market value of such Medical, Dental or Vision coverage for any such Non-Tax Dependent shall be
includible in the Participant’s gross income as a taxable benefit in accordance with applicable federal
income tax rules. For purposes of this Plan, the Participant electing coverage for Non-Tax Dependent(s)
shall be treated as receiving, at the time that coverage is received, cash compensation equal to the full fair
market value of such coverage and then as having purchased the coverage with after-tax employee
contributions.
b. Notwithstanding the foregoing, no medical care or dependent care expenses incurred by or with respect to
a Non-Tax Dependent of a Participant shall be eligible for reimbursement as eligible expenses under the
Health Flexible Spending Account or Dependent Care Flexible Spending Account.
Item 6
01. INITIAL ELECTIONS
An Employee who meets the eligibility requirements of the Section titled: "Eligibility" on the first day of, or during,
a Plan Year may elect to participate in this Plan for all or the remainder of such Plan Year, provided he elects to
do so on or before his or her effective date of participation pursuant to the Section titled: "Effective Date of
Participation".
Notwithstanding the foregoing, an Employee who is eligible to participate in this Plan and who is covered by the
Employer's insured benefits under this Plan shall automatically become a Participant to the extent of the
Premiums for such insurance unless the Employee elects, during the Election Period, not to participate in the
Plan.
02. SUBSEQUENT ANNUAL ELECTIONS
During the Election Period prior to each subsequent Plan Year, each Participant shall be given the opportunity to
elect, on an election of benefits form or electronically, as provided by the Administrator, which spending account
Benefit options he wishes to participate in. Any such election shall be effective for any Benefit expenses incurred
during the Plan Year which immediately follows the end of the Election Period. With regard to subsequent annual
elections, the following options shall apply:
a. A Participant or Employee who failed to initially elect to participate may elect different or new Benefits
under the Plan during the Election Period;
b. A Participant may terminate his or her participation in the Plan by notifying the Administrator in writing or by
electronic notification, as determined by the Employer, during the Election Period that he does not want to
participate in the Plan for the next Plan Year;
c. An Employee who elects not to participate for the Plan Year following the Election Period will have to wait
until the next Election Period before again electing to participate in the Plan, except as provided for in the
Section titled: "Change of Status".
03. FAILURE TO ELECT
With regard to Benefits available under the Plan for which no Premium Expenses apply, any Participant who fails
to complete a new benefit election pursuant to the Section titled: "Subsequent Annual Elections" by the end of
the applicable Election Period shall be deemed to have elected not to participate in the Plan for the upcoming
Plan Year. No further Salary Redirections shall therefore be authorized or made for the subsequent Plan Year
for such Benefits, subject to the provisions of the Section titled: "Change in Status" below.
With regard to Benefits available under the Plan for which Premium Expenses apply, any Participant who fails to
complete a new benefit election pursuant to the Section titled: "Subsequent Annual Elections" by the end of the
applicable Election Period shall be deemed to have made the same Benefit elections as are then in effect for the
current Plan Year. The Participant shall also be deemed to have elected Salary Redirection in an amount
necessary to purchase such Benefit options.
04. CHANGE IN STATUS
a. Change in status defined. Any Participant may change a Benefit election after the Plan Year (to which
such election relates) has commenced and make new elections with respect to the remainder of such Plan
Year if, under the facts and circumstances, the changes are necessitated by and are consistent with a
change in status which is acceptable under rules and regulations adopted by the Department of the
Treasury, the provisions of which are incorporated by reference. Notwithstanding anything herein to the
contrary, if the rules and regulations conflict with any of the provisions of this Plan, then such rules and
regulations shall control. See below in this Section for other situations in which changes in Benefit
elections are permitted.
In general, a change in election is not consistent if the change in status is the Participant's divorce,
annulment or legal separation from a Spouse, the death of a Spouse or Dependent, or a Dependent's
ceasing to satisfy the eligibility requirements for coverage, and the Participant's election under the Plan is
to cancel accident or health insurance coverage for any individual other than the one involved in such
event. In addition, if the Participant, Spouse or Dependent gains eligibility for coverage under any other
plan, then a Participant's election under the Plan to cease or decrease coverage for that individual under
the Plan is consistent with that change in status only if coverage for that individual becomes applicable or
is increased under said other plan. Also, if the Participant, Spouse or Dependent loses eligibility for
coverage under any other plan, then a Participant's election under the Plan to start or increase coverage
for that individual under the Plan is consistent with that change in status only if coverage for that individual
ceases or is decreased under said other plan.
Regardless of the consistency requirement, if the individual, or the individual's Spouse or Dependent,
becomes eligible for continuation coverage under the Employer's group health plan as provided in Code
Section 4980B or any similar state law, then the individual may elect to increase payments under this Plan
V. ARTICLE - PARTICIPANT ELECTIONS
Item 6
in order to pay for the continuation coverage. However, this does not apply for COBRA eligibility due to
divorce, annulment or legal separation.
Any new election shall be effective at such time as the Administrator shall prescribe, but not earlier than
the first pay period beginning after the election form is completed and returned to the Administrator. For
the purposes of this subsection, a change in status shall only include the following events or other events
permitted by Treasury regulations:
1. Legal Marital Status: events that change a Participant's legal marital status, including marriage,
divorce, death of a Spouse, legal separation or annulment;
2. Number of Dependents: Events that change a Participant's number of Dependents, including birth,
adoption, placement for adoption, or death of a Dependent;
3. Employment Status: Any of the following events that change the employment status of the
Participant, Spouse, or Dependent: termination or commencement of employment, a strike or
lockout, commencement or return from an unpaid leave of absence, or a change in worksite. In
addition, if the eligibility conditions of this Plan or other employee benefit plan of the Employer of the
Participant, Spouse, or Dependent depend on the employment status of that individual and there is a
change in that individual's employment status with the consequence that the individual becomes (or
ceases to be) eligible under the plan, then that change constitutes a change in employment under
this subsection;
4. Dependent satisfies or ceases to satisfy the eligibility requirements: An event that causes the
Participant's Dependent to satisfy or cease to satisfy the requirements for coverage due to
attainment of age, student status, or any similar circumstance; and
5. Residency: A change in the place of residence of the Participant, Spouse or Dependent, that would
lead to a change in status (such as a loss of HMO coverage).
For the Dependent Care Flexible Spending Account, a Dependent becoming or ceasing to be a "Qualifying
Dependent" as defined under Code Section 21(b) shall also qualify as a change in status.
Notwithstanding anything in this Section to the contrary, the gain of eligibility or change in eligibility of a
child, as allowed under Code Sections 105(b) and 106, and IRS Notice 2010-38, shall qualify as a change
in status.
b. Special enrollment rights. Notwithstanding subsection (a), the Participants may change an election for
accident or health coverage during a Plan Year and make a new election that corresponds with the special
enrollment rights provided in Code Section 9801(f), including those authorized under the provisions of the
Children's Health Insurance Program Reauthorization Act of 2009 (SCHIP), provided that such Participant
meets the sixty (60) day notice requirement imposed by Code Section 9801(f) (or such longer period as
may be permitted by the Plan and communicated to Participants). Such change shall take place on a
prospective basis, unless otherwise required by Code Section 9801(f) to be retroactive.
c. Qualified Medical Support Order. Notwithstanding subsection (a), in the event of a judgment, decree, or
order (including approval of a property settlement) (collectively, an "order") resulting from a divorce, legal
separation, annulment, or change in legal custody (including a qualified medical child support order) that
requires accident or health coverage for a Participant's child (including a foster child who is a Dependent of
the Participant):
1. The Plan may change an election to provide coverage for the child if the order requires coverage
under the Participant's plan; or
2. The Participant shall be permitted to change an election to cancel coverage for the child if the order
requires the former Spouse to provide coverage for such child, under that individual's plan, and such
coverage is actually provided.
d. Medicare or Medicaid. Notwithstanding subsection (a), a Participant may change elections to cancel
accident or health coverage for the Participant or the Participant's Spouse or Dependent if the Participant
or the Participant's Spouse or Dependent is enrolled in the accident or health coverage of the Employer
and becomes entitled to coverage (i.e., enrolled) under Part A or Part B of Title XVIII of the Social Security
Act (Medicare) or Title XIX of the Social Security Act (Medicaid), other than coverage consisting solely of
benefits under Section 1928 of the Social Security Act (the program for distribution of pediatric vaccines). If
the Participant or the Participant's Spouse or Dependent who has been entitled to Medicaid or Medicare
coverage loses eligibility, that individual may prospectively elect coverage under the Plan if a benefit
package option under the Plan provides similar coverage.
e. Cost increase or decrease. Notwithstanding subsection (a), if the cost of a Benefit provided under the
Plan increases or decreases during a Plan Year, then the Plan shall automatically increase or decrease, as
the case may be, the Salary Redirections of all affected Participants for such Benefit. Alternatively, if the
cost of a benefit package option increases significantly, the Administrator shall permit the affected
Participants to either make corresponding changes in their payments or revoke their elections and, in lieu
thereof, receive on a prospective basis coverage under another benefit package option with similar
coverage, or drop coverage prospectively if there is no benefit package option with similar coverage.
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A cost increase or decrease refers to an increase or decrease in the amount of elective contributions
under the Plan, whether resulting from an action taken by the Participants or an action taken by the
Employer.
f. Loss of coverage. Notwithstanding subsection (a), if the coverage under a Benefit is significantly curtailed
or ceases during a Plan Year, affected Participants may revoke their elections of such Benefit and, in lieu
thereof, elect to receive on a prospective basis coverage under another plan with similar coverage, or drop
coverage prospectively if no similar coverage is offered.
g. Addition of a new benefit. Notwithstanding subsection (a), if, during the period of coverage, a new
benefit package option or other coverage option is added, an existing benefit package option is
significantly improved, or an existing benefit package option or other coverage option is eliminated, then
the affected Participants may elect the newly-added option, or elect another option if an option has been
eliminated prospectively and make corresponding election changes with respect to other benefit package
options providing similar coverage. In addition, those Eligible Employees who are not participating in the
Plan may opt to become Participants and elect the new or newly improved benefit package option.
h. Loss of coverage under certain other plans. Notwithstanding subsection (a), a Participant may make a
prospective election change to add group health coverage for the Participant, the Participant's Spouse or
Dependent if such individual loses group health coverage sponsored by a governmental or educational
institution, including a state children's health insurance program under the Social Security Act, the Indian
Health Service or a health program offered by an Indian tribal government, a state health benefits risk pool,
or a foreign government group health plan.
i. Change of coverage due to change under certain other plans. Notwithstanding subsection (a), a
Participant may make a prospective election change that is on account of and corresponds with a change
made under the plan of a Spouse, former Spouse's employer or Dependent's employer if (1) the cafeteria
plan or other benefits plan of the Spouse, former Spouse's employer or Dependent's employer permits its
participants to make a change; or (2) the cafeteria plan permits participants to make an election for a
period of coverage that is different from the period of coverage under the cafeteria plan of a Spouse,
former Spouse's employer or Dependent's employer.
j. Change in dependent care provider. Notwithstanding subsection (a), a Participant may make a
prospective election change that is on account of and corresponds with a change by the Participant in a
dependent care provider. The availability of dependent care services from a new dependent care provider
is similar to a new benefit package option becoming available. A cost change is allowable in the
Dependent Care Flexible Spending Account only if the cost change is imposed by a dependent care
provider who is not related to the Participant, as defined in Code Section 152(a)(1) through (8).
k. Notwithstanding subsection (a), a Participant may prospectively revoke his or her election of group health
plan coverage if (i) the Participant changes from full-time employment (i.e., an average of 30 hours of
service per week) to part-time employment (i.e., an average of less than 30 hours of service per week),
even if the Participant continues to be eligible for coverage under the group health plan, and (ii) the
Participant, and any related individuals whose coverage is also to be revoked, intend to enroll in another
plan that provides minimum essential coverage and is effective no later than the first day of the second
month after the month during which the revocation is effective.
l. Notwithstanding subsection (a), a Participant may prospectively revoke his or her election of group health
plan coverage if (i) the Participant is eligible for a Special Enrollment Period to enroll in a Qualified Health
Plan through a Marketplace, or seeks to enroll in a Qualified Health Plan through a Marketplace during the
Marketplace's annual open enrollment period, and (ii) the Participant, and any related individuals whose
coverage is also to be revoked, intend to enroll in a Qualified Health Plan through a Marketplace that is
effective no later than the day immediately following the effective date of the revocation.
m. Health Flexible Spending Account cannot change due to insurance change. A Participant shall not be
permitted to change an election to the Health Flexible Spending Account as a result of a cost or coverage
change under any health insurance benefits.
n. Allowable mid-year Status Changes for 2020 due to Coronavirus. The above notwithstanding,
pursuant to applicable guidelines under IRS Notice 2020-29, for all Benefit elections made from January 1,
2020 through December 31, 2020, a Participant can make the following changes in existing coverage
elections on a prospective basis (and only make one change in each election):
a. Change in Healthcare Flexible Spending Account and Dependent Care Flexible Spending Account
elections: A Participant may:
1. Elect to enroll in Healthcare Flexible Spending Account coverage for the Participant and their
Dependents, and contribute allowable annual dollar amounts, even if coverage was previously
declined;
2. Change his or her current coverage elections and options for Healthcare Flexible Spending
Account coverage to increase payroll contribution elections previously made, as long as such
elections do not exceed annual contribution limit amounts;
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3. Change his or her current coverage elections and options for Healthcare Flexible Spending
Account coverage to decrease payroll contribution elections previously made;
4. Elect to enroll in Dependent Care Flexible Spending Account coverage for the Participant and
their Dependents, and contribute allowable annual dollar amounts, even if coverage was
previously declined;
5. Change his or her current coverage elections and options for Dependent Care Flexible
Spending Account coverage to increase payroll contribution elections previously made, as
long as such elections do not exceed annual contribution limit amounts;
6. Change his or her current coverage elections and options for Dependent Care Flexible
Spending Account coverage to decrease payroll contribution elections previously made;
7. Flex Credits and Salary Redirection amounts shall be adjusted by the Plan accordingly as of
the next applicable Salary Redirection date.
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01. ESTABLISHMENT OF BENEFIT
This Health Flexible Spending Account is intended to qualify as a medical reimbursement plan under Code
Section 105 and shall be interpreted in a manner consistent with such Code Section and the Treasury
regulations thereunder. Participants who elect to participate in this Health Flexible Spending Account may submit
claims for the reimbursement of allowable Medical Expenses. All amounts reimbursed shall be periodically paid
from amounts allocated to the Participant’s Health Flexible Spending Account. Periodic payments reimbursing
Participants from the Health Flexible Spending Account shall in no event occur less frequently than monthly.
02. DEFINITIONS
For the purposes of this Article and the Plan, the terms below have the following meanings:
a. "Health Flexible Spending Account" means the account established for a Participant pursuant to this
Plan to which part of his or her Cafeteria Plan Benefit Dollars may be allocated and from which all
allowable Medical Expenses incurred by the Participant, his or her Spouse and his or her Dependents may
be reimbursed.
b. "Highly Compensated Participant" means, for the purposes of this Article and determining
discrimination under Code Section 105(h), a participant who is:
1. one of the 5 highest paid officers;
2. a shareholder who owns (or is considered to own, applying the rules of Code Section 318) more than
10 percent in value of the stock of the Employer; or
3. among the highest paid 25 percent of all Employees (other than exclusions permitted by Code
Section 105(h)(3)(B) for those individuals who are not Participants).
c. "Medical Expenses" means any expense for medical care within the meaning of the term "medical care"
as defined in Code Section 213(d) and the rulings and Treasury regulations thereunder, and not otherwise
used by the Participant as a deduction in determining his or her tax liability under the Code. "Medical
Expenses" can be incurred by the Participant, his or her Spouse and his or her Dependents. "Incurred"
means, with regard to Medical Expenses, when the Participant is provided with the medical care that gives
rise to the Medical Expense and not when the Participant is formally billed or charged for, or pays for, the
medical care.
A Participant may not be reimbursed for the cost of other health coverage such as premiums paid under
plans maintained by the employer of the Participant's Spouse or individual policies maintained by the
Participant or his or her Spouse or Dependent.
d. A Participant may not be reimbursed for "qualified long-term care services" as defined in Code Section
7702B(c).
e. The definitions of the Article titled: "Plan Definitions" are hereby incorporated by reference to the extent
necessary to interpret and apply the provisions of this Health Flexible Spending Account.
03. FORFEITURES
A Participant in the Health Care Flexible Spending Account may roll over up to $550.00 of unused funds at the
end of one Plan Year to the next Plan Year. The maximum limit may increase from year-to-year as provided
under IRS Notice 2020-33 and Section 125(i) of the Internal Revenue Code. These funds can be used during the
following Plan Year for expenses incurred in that Plan Year. Amounts carried over do not affect the maximum
amount of salary redirections otherwise permitted for said next Plan Year. Unused amounts are those remaining
after all eligible expenses for the Plan Year have been reimbursed. These amounts may not be cashed out or
converted to any other taxable or nontaxable benefit. Unused amounts in excess of maximum limit will be
forfeited.
04. LIMITATION ON ALLOCATIONS
Notwithstanding any provision contained in this Health Flexible Spending Account to the contrary, the maximum
amount of salary redirections that may be allocated to the Health Flexible Spending Account by a Participant in
any Plan Year is $2,700.00. The maximum limit may increase from year-to-year pursuant to Section 125(i)(2) of
the Internal Revenue Code.
Carryover: A Participant in the Health Care Flexible Spending Account may roll over up to $550.00 of unused
funds at the end of one Plan Year to the next Plan Year. The maximum limit may increase from year-to-year as
provided under IRS Notice 2020-33 and Section 125(i) of the Internal Revenue Code. These funds can be used
during the following Plan Year for expenses incurred in that Plan Year. Amounts carried over do not affect the
maximum amount of salary redirections otherwise permitted for said next Plan Year. Unused amounts are those
remaining after all eligible expenses for the Plan Year have been reimbursed. These amounts may not be
VI. ARTICLE - HEALTH FLEXIBLE SPENDING ACCOUNT
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cashed out or converted to any other taxable or nontaxable benefit. Unused amounts in excess of maximum limit
will be forfeited.
05. NONDISCRIMINATION REQUIREMENTS
a. Intent to be nondiscriminatory. It is the intent of this Health Flexible Spending Account not to
discriminate in violation of the Code and the Treasury regulations thereunder.
b. Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination under
this Health Flexible Spending Account, it may, but shall not be required to, reject any elections or reduce
contributions or Benefits in order to assure compliance with this Section. Any act taken by the
Administrator under this Section shall be carried out in a uniform and nondiscriminatory manner. If the
Administrator decides to reject any elections or reduce contributions or Benefits, it shall be done in the
following manner. First, the Benefits designated for the Health Flexible Spending Account by the member
of the group in whose favor discrimination may not occur pursuant to Code Section 105 that elected to
contribute the highest amount to the fund for the Plan Year shall be reduced until the nondiscrimination
tests set forth in this Section and/or the Code are satisfied, or until the amount designated for the fund
equals the amount designated for the fund by the member of the group in whose favor discrimination may
not occur pursuant to Code Section 105 who has elected the second highest contribution to the Health
Flexible Spending Account for the Plan Year. This process shall continue until the nondiscrimination tests
set forth in this Section or the Code are satisfied. Contributions which are not utilized to provide Benefits to
any Participant by virtue of any administrative act under this paragraph shall be forfeited and credited to
the benefit plan surplus.
06. COORDINATION WITH CAFETERIA PLAN
All Participants under the Plan are eligible to receive Benefits under this Health Flexible Spending Account.
Enrollment under the Cafeteria Plan shall constitute enrollment under this Health Flexible Spending Account. In
addition, other matters concerning contributions, elections and the like shall be governed by the general
provisions of the Cafeteria Plan.
07. HEALTH FLEXIBLE SPENDING ACCOUNT CLAIMS
a. Expenses must be incurred during Plan Year. All eligible Medical Expenses incurred by a Participant,
his or her Spouse and his or her Dependents during the Plan Year shall be reimbursed, subject to the
Section titled: "Termination of Employment", even though the submission of such a claim occurs after his
or her participation hereunder ceases; but provided that the Medical Expenses were incurred during the
applicable Plan Year. Medical Expenses are treated as having been incurred when the Participant is
provided with the medical care that gives rise to the medical expenses, not when the Participant is formally
billed or charged for, or pays for the medical care.
b. Reimbursement available throughout Plan Year. The Administrator shall direct the reimbursement to
each eligible Participant for all allowable Medical Expenses, up to a maximum of the amount designated
by the Participant for the Health Flexible Spending Account for the Plan Year. Reimbursements shall be
made available to the Participant throughout the year without regard to the level of Cafeteria Plan Benefit
Dollars which have been allocated to the fund at any given point in time. Furthermore, a Participant shall
be entitled to reimbursements only for amounts in excess of any payments or other reimbursements under
any health care plan covering the Participant and/or his or her Spouse or Dependents.
c. Payments. Reimbursement payments under this Plan shall be made directly to the Participant. However,
in the Administrator's discretion, payments may be made directly to the service provider. The application
for payment or reimbursement shall be made to the Administrator on an acceptable form within a
reasonable time after incurring the debt or paying for the service. The application shall include a written
statement from an independent third party stating that the Medical Expense has been incurred and the
amount of such expense. Furthermore, the Participant shall provide a written statement that the Medical
Expense has not been reimbursed or is not reimbursable under any other health plan coverage and, if
reimbursed from the Health Flexible Spending Account, such amount will not be claimed as a tax
deduction. The Administrator shall retain a file of all such applications.
d. Claims for reimbursement. Claims for the reimbursement of Medical Expenses incurred in any Plan Year
shall be paid as soon after a claim has been filed as is administratively practicable; provided however, that
if a Participant fails to submit a claim within 90 days after the end of the Plan Year, those Medical Expense
claims shall not be considered for reimbursement by the Administrator. However, if a Participant
terminates employment during the Plan Year, claims for the reimbursement of Medical Expenses must be
submitted within 60 days after the date of termination.
08. DEBIT AND CREDIT CARDS
Participants may, subject to a procedure established by the Administrator and applied in a uniform
nondiscriminatory manner, use debit and/or credit (stored value) cards ("cards") provided by the Administrator
and the Plan for payment of Medical Expenses, subject to the following terms:
a. Card only for medical expenses. Each Participant issued a card shall certify that such card shall only be
used for Medical Expenses. The Participant shall also certify that any Medical Expense paid with the card
has not already been reimbursed by any other plan covering health benefits and that the Participant will not
Item 6
seek reimbursement from any other plan covering health benefits.
b. Card issuance. Such card shall be issued upon the Participant’s Effective Date of Participation and
reissued or remain in effect for each Plan Year the Participant remains a Participant in the Health Flexible
Spending Account. Such card shall be automatically cancelled upon the Participant’s death or termination
of employment, or if such Participant has a change in status that results in the Participant’s withdrawal
from the Health Flexible Spending Account.
c. Maximum dollar amount available. The dollar amount of coverage available on the card shall be the
amount elected by the Participant for the Plan Year. The maximum dollar amount of coverage available
shall be the maximum amount for the Plan Year as set forth in the Section titled: "Limitation on
Allocations".
d. Only available for use with certain service providers. The cards shall only be accepted by such
merchants and service providers as have been approved by the Administrator.
e. Card use. The cards shall only be used for Medical Expense purchases as defined in Code Section 213(d)
and the rulings and Treasury regulations thereunder, including, but not limited to, the following:
1. Co-payments for doctor and other medical care;
2. Purchase of drugs prescribed by a health care provider, including, if permitted by the Administrator,
over-the-counter medications as allowed under IRS regulations;
3. Purchase of medical items such as eyeglasses, syringes, crutches, etc.
f. Substantiation. Such purchases by the cards shall be subject to confirmation by the Administrator,
usually by requiring the Participant to submit a receipt from a service provider describing the service, the
date and the amount. The Administrator shall also follow the requirements set forth in Revenue Ruling
2003-43 and Notice 2006-69. All charges shall be conditional pending confirmation by the Administrator.
g. Correction methods. If such purchase is later determined by the Administrator to not qualify as a Medical
Expense, the Administrator, in its discretion, shall use one of the following correction methods to make the
Plan whole. Until the amount is repaid, the Administrator shall take further action to ensure that further
violations of the terms of the card do not occur, up to and including denial of access to the card.
1. Repayment of the improper amount by the Participant;
2. Withholding the improper payment from the Participant's wages or other compensation to the extent
consistent with applicable federal and state law;
3. Claims substitution or offset of future claims until the amount is repaid; and
4. If subsections (1) through (3) fail to recover the amount, consistent with the Employer's business
practices, the Employer may treat the amount as any other business indebtedness.
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01. ESTABLISHMENT OF ACCOUNT
This Dependent Care Flexible Spending Account is intended to qualify as a program under Code Section 129
and shall be interpreted in a manner consistent with such Code Section. Participants who elect to participate in
this program may submit claims for the reimbursement of Employment-Related Dependent Care Expenses. All
amounts reimbursed shall be paid from amounts allocated to the Participant's Dependent Care Flexible
Spending Account.
02. DEFINITIONS
For the purposes of this Article and the Plan, the terms below shall have the following meaning:
a. "Dependent Care Flexible Spending Account" means the account established for a Participant pursuant
to this Article to which part of his or her Cafeteria Plan Benefit Dollars may be allocated and from which
Employment-Related Dependent Care Expenses of the Participant may be reimbursed for the care of the
Qualifying Dependents of Participants.
b. "Earned Income" means earned income as defined under Code Section 32(c)(2), but excluding such
amounts paid or incurred by the Employer for dependent care assistance to the Participant.
c. "Employment-Related Dependent Care Expenses" means the amounts paid for those expenses of a
Participant that, if paid by the Participant, would be considered employment related expenses under Code
Section 21(b)(2). Generally, they include expenses for household services and for the care of a Qualifying
Dependent, to the extent that such expenses are incurred to enable the Participant to be gainfully
employed for any period during which there are one or more Qualifying Dependents with respect to such
Participant. Employment-Related Dependent Care Expenses are treated as having been incurred when
the Participant's Qualifying Dependents are provided with the dependent care that gives rise to the
Employment-Related Dependent Care Expenses, not when the Participant is formally billed or charged for,
or pays for, the dependent care. The determination of whether an amount qualifies as an Employment-
Related Dependent Care Expense shall be made subject to the following rules:
1. If such amounts are paid for expenses incurred outside the Participant's household, they shall
constitute Employment Related Dependent Care Expenses only if incurred for a Qualifying
Dependent (as defined in the "Definitions" Section of the Article titled: "Dependent Care Flexible
Spending Account") who regularly spends at least eight (8) hours per day in the Participant's
household;
2. If the expense is incurred outside the Participant's home at a facility that provides care for a fee,
payment, or grant for more than six (6) individuals who do not regularly reside at the facility, the
facility must comply with all applicable state and local laws and regulations, including licensing
requirements, if any; and
3. Employment-Related Dependent Care Expenses of a Participant shall not include amounts paid to
or incurred by a child of such Participant who is under the age of 19 or to an individual who is a
Dependent of such Participant or such Participant's Spouse.
d. "Qualifying Dependent" means, for Dependent Care Flexible Spending Account purposes,
1. a Participant's Dependent (as defined in Code Section 152(a)(1)) who has not attained age 13;
2. a Dependent or Spouse of a Participant who is physically or mentally incapable of caring for himself
or herself and has the same principal place of abode as the Participant for more than one-half of
such taxable year; or
3. a child that is deemed to be a Qualifying Dependent described in paragraph (1) or (2) above,
whichever is appropriate, pursuant to Code Section 21(e)(5).
e. The definitions of the Article titled: "Definitions" are hereby incorporated by reference to the extent
necessary to interpret and apply the provisions of this Dependent Care Flexible Spending Account.
03. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
The Administrator shall establish a Dependent Care Flexible Spending Account for each Participant who elects
to apply Cafeteria Plan Benefit Dollars to Dependent Care Flexible Spending Account benefits.
04. INCREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
A Participant's Dependent Care Flexible Spending Account shall be increased each pay period by the amount of
Cafeteria Plan Benefit Dollars that he has elected to apply toward his or her Dependent Care Flexible Spending
Account pursuant to elections made under Article V hereof.
05. DECREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS
VII. ARTICLE - DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
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A Participant's Dependent Care Flexible Spending Account shall be reduced by the amount of any Employment-
Related Dependent Care Expense reimbursements paid or incurred on behalf of the Participant pursuant to the
Section titled: "Dependent Care Flexible Spending Account Claims" hereof.
06. ALLOWABLE DEPENDENT CARE REIMBURSEMENT
Subject to limitations contained in the Section titled: "Limitation on Payments" below, and to the extent of the
amount contained in the Participant's Dependent Care Flexible Spending Account, a Participant who incurs
Employment-Related Dependent Care Expenses shall be entitled to receive from the Employer full
reimbursement for the entire amount of such expenses incurred during the Plan Year or portion thereof during
which he is a Participant.
07. ANNUAL STATEMENT OF BENEFITS
On or before January 31st of each calendar year, the Employer shall furnish to each Employee who was a
Participant and received benefits under the Section titled: "Definitions" during the prior calendar year, a
statement of all such benefits paid to or on behalf of such Participant during the prior calendar year. This
statement is set forth on the Participant's Form W-2.
08. FORFEITURES
The amount in a Participant's Dependent Care Flexible Spending Account as of the end of any Plan Year (and
after the processing of all claims for such Plan Year pursuant to the Section titled: "Dependent Care Flexible
Spending Account Claims" hereof) shall be forfeited and credited to the benefit plan surplus. In such event, the
Participant shall have no further claim to such amount for any reason.
09. LIMITATION ON PAYMENTS
a. Code limits. Notwithstanding any provision contained in this Article to the contrary, amounts paid from a
Participant's Dependent Care Flexible Spending Account in or on account of any tax year of the Participant
shall not exceed the lesser of the Earned Income limitation described in Code Section 129(b) and
$5,000.00 ($2,500 if a separate tax return is filed by a Participant who is married as determined under the
rules of paragraphs (3) and (4) of Code Section 21(e)).
10. NONDISCRIMINATION REQUIREMENTS
a. Intent to be nondiscriminatory. It is the intent of this Dependent Care Flexible Spending Account that
contributions or benefits not discriminate in favor of the group of employees in whose favor discrimination
is prohibited under Code Section 129(d).
b. 25% test for shareholders. It is the intent of this Dependent Care Flexible Spending Account that not
more than 25 percent of the amounts paid by the Employer for dependent care assistance during the Plan
Year will be provided for the class of individuals who are shareholders or owners (or their Spouses or
Dependents), each of whom (on any day of the Plan Year) owns more than 5 percent of (i) the stock of, or
(ii) the capital or profits interest in, the Employer.
c. Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination or
possible taxation to a group of employees in whose favor discrimination is prohibited by Code Section 129,
it may, but shall not be required to, reject any elections or reduce contributions or non-taxable benefits in
order to assure compliance with this Section. Any act taken by the Administrator under this Section shall
be carried out in a uniform and nondiscriminatory manner. If the Administrator decides to reject any
elections or reduce contributions or Benefits, it shall be done in the following manner. First, the Benefits
designated for the Dependent Care Flexible Spending Account by the affected Participant that elected to
contribute the highest amount to such account for the Plan Year shall be reduced until the
nondiscrimination tests set forth in this Section are satisfied, or until the amount designated for the account
equals the amount designated for the account of the affected Participant who has elected the second
highest contribution to the Dependent Care Flexible Spending Account for the Plan Year. This process
shall continue until the nondiscrimination tests set forth in this Section are satisfied. Contributions which
are not utilized to provide Benefits to any Participant by virtue of any administrative act under this
paragraph shall be forfeited.
11. COORDINATION WITH CAFETERIA PLAN
All Participants under the Cafeteria Plan are eligible to receive Benefits under this Dependent Care Flexible
Spending Account. The enrollment and termination of participation under the Cafeteria Plan shall constitute
enrollment and termination of participation under this Dependent Care Flexible Spending Account. In addition,
other matters concerning contributions, elections and the like shall be governed by the general provisions of the
Cafeteria Plan.
12. DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT CLAIMS
The Administrator shall direct the payment of all qualified Dependent Care claims to the Participant upon the
presentation to the Administrator of documentation of such expenses in a form satisfactory to the Administrator.
However, in the Administrator's discretion, payments may be made directly to the service provider. In its
discretion in administering the Plan, the Administrator may utilize forms and require documentation of costs as
Item 6
may be necessary to verify the claims submitted. At a minimum, the form shall include a statement from an
independent third party as proof that the expense has been incurred during the Plan Year and the amount of
such expense. In addition, the Administrator may require that each Participant who desires to receive
reimbursement under this Program for Employment-Related Dependent Care Expenses submit a statement
which may contain some or all of the following information:
a. The Dependent or Dependents for whom the services were performed;
b. The nature of the services performed for the Dependent, the cost of which the Participant wishes
reimbursement;
c. The relationship, if any, of the person performing the services to the Participant;
d. If the services are being performed by a child of the Participant, the age of the child;
e. A statement as to where the services were performed;
f. If any of the services were performed outside the home, a statement as to whether the Dependent for
whom such services were performed spends at least 8 hours a day in the Participant's household;
g. If the services were being performed in a day care center, a statement:
1. that the day care center complies with all applicable laws and regulations of the state of residence,
2. that the day care center provides care for more than 6 individuals (other than individuals residing at
the center), and
3. of the amount of fee paid to the provider.
h. If the Participant is married, a statement containing the following:
1. the Spouse's salary or wages, if he or she is employed, or
2. if the Participant's Spouse is not employed, that
i. he or she is incapacitated, or
ii. he or she is a full-time student attending an educational institution, and the months of the year
during which he or she attends such institution.
i. Claims for reimbursement. If a Participant fails to submit a claim within 90 days after the end of the Plan
Year, those claims shall not be considered for reimbursement by the Administrator.
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01. PLAN ADMINISTRATION
The Employer shall be the Administrator, unless the Employer elects otherwise. The Employer may appoint any
person or persons, including, but not limited to, one or more Employees of the Employer, to perform the duties of
the Administrator. Any person so appointed shall signify acceptance by filing written acceptance with the
Employer. An Administrator may resign by delivering a written resignation to the Employer or may be removed by
the Employer by delivery of written notice of removal, to take effect at a date specified therein, or upon delivery if
no date is specified. Upon the resignation or removal of any individual performing the duties of the Administrator,
the Employer may designate a successor. The Employer shall be empowered to appoint and remove the
Administrator from time to time as it deems necessary for the proper administration of the Plan to ensure that the
Plan is being operated for the exclusive benefit of the Employees entitled to participate in the Plan in accordance
with the terms of the Plan and the Code.
The operation of the Plan shall be under the supervision of the Administrator. It shall be a principal duty of the
Administrator to see that the Plan is carried out in accordance with its terms, and for the exclusive benefit of
Employees entitled to participate in the Plan. The Administrator shall have full power and discretion to administer
the Plan in all of its details and determine all questions arising in connection with the administration,
interpretation, and application of the Plan. The Administrator may establish procedures, correct any defect,
supply any information, or reconciles any inconsistency in such manner and to such extent as shall be deemed
necessary or advisable to carry out the purpose of the Plan. The Administrator shall have all powers necessary
or appropriate to accomplish the Administrator's duties under the Plan. The Administrator shall be charged with
the duties of the general administration of the Plan as set forth under the Plan, including, but not limited to, in
addition to all other powers provided by this Plan:
a. To make and enforce such procedures, rules and regulations as the Administrator deems necessary or
proper for the efficient administration of the Plan;
b. To interpret the provisions of the Plan, the Administrator's interpretations thereof in good faith to be final
and conclusive on all persons claiming benefits by operation of the Plan;
c. To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan and
to receive benefits provided by operation of the Plan;
d. To reject elections or to limit contributions or Benefits for certain highly compensated participants if it
deems such to be desirable in order to avoid discrimination under the Plan in violation of applicable
provisions of the Code;
e. To provide Employees with a reasonable notification of their benefits available by operation of the Plan and
to assist any Participant regarding the Participant's rights, benefits or elections under the Plan;
f. To keep and maintain the Plan documents and all other records pertaining to and necessary for the
administration of the Plan;
g. To review and settle all claims against the Plan, to approve reimbursement requests, and to authorize the
payment of benefits if the Administrator determines such should be paid. This authority specifically permits
the Administrator to settle disputed claims for benefits and any other disputed claims made against the
Plan;
h. To establish and communicate procedures to determine whether a medical child support order is qualified;
and
i. To appoint such agents, counsel, accountants, consultants, and other persons or entities as may be
required to assist in administering the Plan.
Any procedure, discretionary act, interpretation or construction taken by the Administrator shall be done in a
nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the
intent that the Plan shall continue to comply with the terms of Code Section 125 and the Treasury regulations
thereunder.
02. EXAMINATION OF RECORDS
The Administrator shall make available to each Participant, Eligible Employee and any other Employee of the
Employer, for examination at reasonable times during normal business hours, such records as pertain to their
interest under the Plan.
03. PAYMENT OF EXPENSES
Any reasonable administrative expenses shall be paid by the Employer unless the Employer determines that
administrative costs shall be borne by the Participants under the Plan or by any Trust Fund which may be
established hereunder. The Administrator may impose reasonable conditions for payments, provided that such
conditions shall not discriminate in favor of highly compensated employees.
VIII. ARTICLE - ADMINISTRATION
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04. INSURANCE CONTROL CLAUSE
In the event of a conflict between the terms of this Plan and the terms of an Insurance Contract of an
independent third party Insurer or other benefit program that is self-insured whose product is then being used in
conjunction with this Plan, the terms of the Insurance Contract shall control as to those Participants receiving
coverage under such Insurance Contract. For this purpose, the Insurance Contract shall control in defining the
persons eligible for insurance, the dates of their eligibility, the conditions which must be satisfied to become
insured, if any, the benefits Participants are entitled to and the circumstances under which insurance terminates.
05. INDEMNIFICATION OF ADMINISTRATOR
The Employer agrees to indemnify and to defend to the fullest extent permitted by law any Employee serving as
the Administrator or as a member of a committee designated as Administrator (including any Employee or former
Employee who previously served as Administrator or as a member of such committee) against all liabilities,
damages, costs and expenses (including attorney's fees and amounts paid in settlement of any claims approved
by the Employer) occasioned by any act or omission to act in connection with the Plan, if such act or omission is
in good faith.
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01. AMENDMENT
The Employer, at any time or from time to time, may amend any or all of the provisions of the Plan without the
consent of any Employee or Participant. No amendment shall have the effect of modifying any benefit election of
any Participant in effect at the time of such amendment, unless such amendment is made to comply with
Federal, state and local laws, statutes and regulations.
02. TERMINATION
The Employer reserves the right to terminate this Plan, in whole or in part, at any time. In the event the Plan is
terminated, no further contributions shall be made. Benefits under any Insurance Contract shall be paid in
accordance with the terms of the Insurance Contract.
No further additions shall be made to the Health Flexible Spending Account or Dependent Care Flexible
Spending Account, but all payments from such accounts shall continue to be made according to the elections in
effect until 90 days after the termination date of the Plan. Any amounts remaining in any such fund or account as
of the end of such period shall be forfeited and deposited in the benefit plan surplus after the expiration of the
filing period.
IX. ARTICLE - AMENDMENT OR TERMINATION OF PLAN
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01. PLAN INTERPRETATION
All provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory manner. This Plan
shall be read in its entirety and not severed except as provided in the Section titled: "Severability".
02. GENDER AND NUMBER
Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as
though they were also used in another gender in all cases where they would so apply, and whenever any words
are used herein in the singular or plural form, they shall be construed as though they were also used in the other
form in all cases where they would so apply.
03. WRITTEN DOCUMENT
This Plan, in conjunction with any separate written document which may be required by law, is intended to satisfy
the written Plan requirement of Code Section 125 and any Treasury regulations thereunder relating to cafeteria
plans.
04. EXCLUSIVE BENEFIT
This Plan shall be maintained for the exclusive benefit of the Employees who participate in the Plan.
05. PARTICIPANT'S RIGHTS
This Plan shall not be deemed to constitute an employment contract between the Employer and any Participant
or to be a consideration or an inducement for the employment of any Participant or Employee. Nothing contained
in this Plan shall be deemed to give any Participant or Employee the right to be retained in the service of the
Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time
regardless of the effect which such discharge shall have upon him as a Participant of this Plan.
06. ACTION BY THE EMPLOYER
Whenever the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or
thing, it shall be done and performed by a person duly authorized by the Employer.
07. EMPLOYER'S PROTECTIVE CLAUSES
a. Insurance purchase. Upon the failure of either the Participant or the Employer to obtain the insurance
contemplated by this Plan (whether as a result of negligence, gross neglect or otherwise), the Participant's
Benefits shall be limited to the insurance premium(s), if any, that remained unpaid for the period in
question and the actual insurance proceeds, if any, received by the Employer or the Participant as a result
of the Participant's claim.
b. Validity of insurance contract. The Employer shall not be responsible for the validity of any Insurance
Contract issued hereunder or for the failure on the part of the Insurer to make payments provided for under
any Insurance Contract. Once insurance is applied for or obtained, the Employer shall not be liable for any
loss which may result from the failure to pay Premiums to the extent Premium notices are not received by
the Employer.
08. NO GUARANTEE OF TAX CONSEQUENCES
Neither the Administrator nor the Employer makes any commitment or guarantee that any amounts paid to or for
the benefit of a Participant under the Plan will be excludable from the Participant's gross income for federal or
state income tax purposes, or that any other federal or state tax treatment will apply to or be available to any
Participant. It shall be the obligation of each Participant to determine whether each payment under the Plan is
excludable from the Participant's gross income for federal and state income tax purposes, and to notify the
Employer if the Participant has reason to believe that any such payment is not so excludable. Notwithstanding
the foregoing, the rights of Participants under this Plan shall be legally enforceable.
09. INDEMNIFICATION OF EMPLOYER BY PARTICIPANTS
If any Participant receives one or more payments or reimbursements under the Plan that are not for a permitted
Benefit, such Participant shall indemnify and reimburse the Employer for any liability it may incur for failure to
withhold federal or state income tax or Social Security tax from such payments or reimbursements. However,
such indemnification and reimbursement shall not exceed the amount of additional federal and state income tax
(plus any penalties) that the Participant would have owed if the payments or reimbursements had been made to
the Participant as regular cash compensation, plus the Participant's share of any Social Security tax and
Medicare tax that would have been paid on such compensation, less any such additional income tax, Social
Security tax, and Medicare tax actually paid by the Participant.
10. FUNDING
X. ARTICLE - MISCELLANEOUS
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Unless otherwise required by law, contributions to the Plan need not be placed in trust or dedicated to a specific
Benefit, but may instead be considered general assets of the Employer. Furthermore, and unless otherwise
required by law, nothing herein shall be construed to require the Employer or the Administrator to maintain any
fund or segregate any amount for the benefit of any Participant, and no Participant or other person shall have
any claim against, right to, or security or other interest in, any fund, account or asset of the Employer from which
any payment under the Plan may be made.
11. GOVERNING LAW
This Plan is governed by the Code and the Treasury regulations issued thereunder (as they might be amended
from time to time). In no event does the Employer guarantee the favorable tax treatment sought by this Plan. To
the extent not preempted by Federal law, the provisions of this Plan shall be construed, enforced and
administered according to the laws of California.
12. SEVERABILITY
If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any
other provisions of the Plan, and the Plan shall be construed and enforced as if such provision had not been
included herein.
13. CAPTIONS
The captions contained herein are inserted only as a matter of convenience and for reference, and in no way
define, limit, enlarge or describe the scope or intent of the Plan, nor in any way shall affect the Plan or the
construction of any provision thereof.
14. CONTINUATION OF COVERAGE (COBRA)
Notwithstanding anything in the Plan to the contrary, in the event any benefit under this Plan subject to the
continuation coverage requirement of Code Section 4980B becomes unavailable, each Participant will be
entitled to continuation coverage as prescribed in Code Section 4980B, and related regulations. This Section
shall only apply if the Employer employs at least twenty (20) employees on more than 50% of its typical business
days in the previous calendar year.
15. FAMILY AND MEDICAL LEAVE ACT (FMLA)
Notwithstanding anything in the Plan to the contrary, in the event any benefit under this Plan becomes subject to
the requirements of the Family and Medical Leave Act and regulations thereunder, this Plan shall be operated in
accordance with Regulation 1.125-3.
16. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA)
Notwithstanding anything in this Plan to the contrary, this Plan shall be operated in accordance with HIPAA and
regulations thereunder.
17. QUALIFIED RESERVIST DISTRIBUTIONS
Notwithstanding any provision of this Plan to the contrary, a Participant may elect to receive a distribution of
certain funds from his or her Health Flexible Spending Account or Limited Purpose Flexible Spending Account if
the following criteria is met:
1. The Participant is a Qualified Reservist as defined in the Section titled: "Definitions".
2. The Participant is ordered or called to active duty for a period in excess of 180 days or more, or for an
indefinite period. If the period is less than 180 days, a Qualified Reservist Distribution is not allowed unless
there are subsequent orders or calls for duty that increase the total period of active duty to 180 days or
more.
3. The Participant has provided the Plan Administrator with a copy of the order or call to active duty and;
4. The request for distribution is made during the period beginning with the order or call to duty and ending
on the last day of the Plan Year (or Grace Period if applicable) in which the order or call to duty occurred.
The Participant delivers a written election to the Plan Administrator in a form designated or requested by
the Plan Administrator.
The amount of the QRD shall be the amount contributed to the account as of the date of the QRD request minus
reimbursements received as of the date of the QRD request.
18. COMPLIANCE WITH HIPAA PRIVACY STANDARDS
a. Application. If any benefits under this Cafeteria Plan are subject to the Standards for Privacy of
Individually Identifiable Health Information (45 CFR Part 164, the "Privacy Standards"), then this Section
shall apply.
b. Disclosure of PHI. The Plan shall not disclose Protected Health Information to any member of the
Employer's workforce unless each of the conditions set out in this Section are met. "Protected Health
Information" shall have the same definition as set forth in the Privacy Standards but generally shall mean
individually identifiable information about the past, present or future physical or mental health or condition
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of an individual, including information about treatment or payment for treatment.
c. PHI disclosed for administrative purposes. Protected Health Information disclosed to members of the
Employer's workforce shall be used or disclosed by them only for purposes of Plan administrative
functions. The Plan's administrative functions shall include all Plan payment functions and health care
operations. The terms "payment" and "health care operations" shall have the same definitions as set out in
the Privacy Standards, but the term "payment" generally shall mean activities taken to determine or fulfill
Plan responsibilities with respect to eligibility, coverage, provision of benefits, or reimbursement for health
care. Genetic information will not be used or disclosed for underwriting purposes.
d. PHI disclosed to certain workforce members. The Plan shall disclose Protected Health Information only
to members of the Employer's workforce who are authorized to receive such Protected Health Information,
and only to the extent and in the minimum amount necessary for that person to perform his or her duties
with respect to the Plan. "Members of the Employer's workforce" shall refer to all employees and other
persons under the control of the Employer. The Employer shall keep an updated list of those authorized to
receive Protected Health Information.
1. An authorized member of the Employer's workforce who receives Protected Health Information shall
use or disclose the Protected Health Information only to the extent necessary to perform his or her
duties with respect to the Plan.
2. In the event that any member of the Employer's workforce uses or discloses Protected Health
Information other than as permitted by this Section and the Privacy Standards, the incident shall be
reported to the Plan's privacy officer. The privacy officer shall take appropriate action, including:
i. investigation of the incident to determine whether the breach occurred inadvertently, through
negligence or deliberately; whether there is a pattern of breaches; and the degree of harm
caused by the breach;
ii. appropriate sanctions against the persons causing the breach which, depending upon the
nature of the breach, may include oral or written reprimand, additional training, or termination
of employment;
iii. mitigation of any harm caused by the breach, to the extent practicable; and
iv. documentation of the incident and all actions taken to resolve the issue and mitigate any
damages.
e. Certification. The Employer must and hereby does provide certification to the Plan that it agrees to adopt
all required provisions as mandated under HIPAA for all non-exempt group health plans, including the
following:
1. Not use or further disclose the information other than as permitted or required by the Plan documents
or as required by law;
2. Ensure that any agent or subcontractor, to whom it provides Protected Health Information received
from the Plan, agrees to the same restrictions and conditions that apply to the Employer with respect
to such information;
3. Not use or disclose Protected Health Information for employment-related actions and decisions or in
connection with any other benefit or employee benefit plan of the Employer;
4. Report to the Plan any use or disclosure of the Protected Health Information of which it becomes
aware that is inconsistent with the uses or disclosures permitted by this Section, or required by law;
5. Make available Protected Health Information to individual Plan members in accordance with Section
164.524 of the Privacy Standards;
6. Make available Protected Health Information for amendment by individual Plan members and
incorporate any amendments to Protected Health Information in accordance with Section 164.526 of
the Privacy Standards;
7. Make available the Protected Health Information required to provide an accounting of disclosures to
individual Plan members in accordance with Section 164.528 of the Privacy Standards;
8. Make its internal practices, books and records relating to the use and disclosure of Protected Health
Information received from the Plan available to the Department of Health and Human Services for
purposes of determining compliance by the Plan with the Privacy Standards;
9. If feasible, return or destroy all Protected Health Information received from the Plan that the
Employer still maintains in any form, and retain no copies of such information when no longer
needed for the purpose for which disclosure was made, except that, if such return or destruction is
not feasible, limit further uses and disclosures to those purposes that make the return or destruction
of the information infeasible; and
10. Ensure the adequate separation between the Plan and members of the Employer's workforce, as
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required by Section 164.504(f)(2)(iii) of the Privacy Standards.
19. COMPLIANCE WITH HIPAA ELECTRONIC SECURITY STANDARDS
Under the Security Standards for the Protection of Electronic Protected Health Information (45 CFR Part 164.300
et. seq., the "Security Standards"):
a. Implementation. The Employer agrees to implement reasonable and appropriate administrative, physical
and technical safeguards to protect the confidentiality, integrity and availability of Electronic Protected
Health Information that the Employer creates, maintains or transmits on behalf of the Plan. "Electronic
Protected Health Information" shall have the same definition as set out in the Security Standards, but
generally shall mean Protected Health Information that is transmitted by or maintained in electronic media.
b. Agents or subcontractors shall meet security standards. The Employer shall ensure that any agent or
subcontractor to whom it provides Electronic Protected Health Information shall agree, in writing, to
implement reasonable and appropriate security measures to protect the Electronic Protected Health
Information.
c. Employer shall ensure security standards. The Employer shall ensure that reasonable and appropriate
security measures are implemented to comply with the conditions and requirements set forth in the
Section titled: "Compliance with HIPAA Privacy Standards".
20. MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT
Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Mental Health Parity and
Addiction Equity Act and ERISA Section 712.
21. GENETIC INFORMATION NONDISCRIMINATION ACT (GINA)
Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Genetic Information
Nondiscrimination Act.
22. WOMEN'S HEALTH AND CANCER RIGHTS ACT
Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Women's Health and Cancer
Rights Act of 1998.
23. NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT
Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Newborns' and Mothers'
Health Protection Act.
Item 6
By:
Name:
Title:
Execution Agreement
IN WITNESS WHEREOF, City of San Luis Obispo has caused its authorized officer to execute this amended and restated Plan document as of
______________________, the same to be effective January 01, 2020, unless otherwise indicated herein.
City of San Luis Obispo
Item 6
By:
Name:
Title:
CERTIFICATE OF RESOLUTION
The undersigned authorized representative of City of San Luis Obispo (the Employer) hereby certifies that the following resolutions were duly
adopted by the governing body of the Employer on ______________________, and that such resolutions have not been modified or rescinded
as of the date hereof:
RESOLVED, that the form of amended and restated Welfare Benefit Plan, effective January 01, 2020, presented to this meeting (and a copy of
which is attached hereto) is hereby approved and adopted, and that the proper agents of the Employer are hereby authorized and directed to
execute and deliver to the Administrator of said Plan one or more counterparts of the Plan.
RESOLVED, that the Administrator shall be instructed to take such actions that the Administrator deems necessary and proper in order to
implement the Plan, and to set up adequate accounting and administrative procedures for the provision of benefits under the Plan.
RESOLVED, that the proper agents of the Employer shall act as soon as possible to notify the employees of the Employer of the adoption of the
Plan and to deliver to each employee a copy of the Summary Plan Description of the Plan, which Summary Plan Description is attached hereto
and is hereby approved.
The undersigned further certifies that attached hereto as Exhibits, are true copies of City of San Luis Obispo's Benefit Plan Document and
Summary Plan Description approved and adopted at this meeting.
City of San Luis Obispo
Item 6
Department Name: Fire
Cost Center: 8502
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Keith Aggson, Fire Chief
Prepared By: James Blattler, Administrative Analyst
SUBJECT: FIRE STATION ALERTING SYSTEM SERVICE AGREEMENT
RECOMMENDATION
1. Approve a five-year Fire Station Alerting System Sole Source Service Agreement with U.S.
Digital Designs, Inc. for $149,715; and
2. Authorize the Fire Chief to execute the service agreement (Attachment A).
DISCUSSION
The City of San Luis Obispo Fire Department (“Fire Department”) station alerting system was
replaced with a new system in 2010. The current five-year service agreement for this system will
expire October 31, 2020. This station alerting system is utilized 24h/7d/365d and is the main
system that alerts and provides Fire Department personnel with the critical information to get
them out of the station and in route to provide critical public safety services.
The alerting system is comprised of speakers, digital displays and lights and is “always on” to ensure
fire personnel are alerted in case of a health or safety emergency. This “always on” state shortens the
working life of the equipment and requires a service agreement to ensure proper operation. Public
safety equipment must remain highly reliable, as such the Fire Department and Information
Technology staff is recommending a new five-year service agreement that covers software versions
and hardware replacements required to maintain the operational integrity of the system.
Policy Context
Per City of San Luis Obispo Financial Management Manual, Section 202, Exhibit 202-A, it is the
policy of the City of San Luis Obispo (“City”) to require Council Approval on purchases of IT
Systems valued at $100,000 or more.
Additionally, per Section 201, Exhibit 201-B of the Financial Management Manual it is the policy of
the City to solicit quotations or bids for purchases of commodities or services for specified dollar
amounts and to select vendors on a competitive basis. Pursuant to Municipal Code Section 3.24.060,
certain acquisitions in which the products or services may only be obtained from a single source may
be purchased without engaging in bidding procedures. Such Sole Source acquisitions must be
justified in sufficient detail to explain the basis for suspending the usual competitive procurement
process and approved by the approving authority before such a purchase is made.
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Staff is recommending a sole source acquisition due to the contractor being the only vendor that
can service the City’s current fire station alerting system. (See San Luis Obispo Municipal Code
Section § 3.24.060(C)-(D).) Changing the alerting system would require a system wide
replacement of both hardware and software, which would come at a significant unbudgeted
expense. Additional details of the sole source recommendation can be found in the “Sole Source
Justification: US Digital Design” document (Attachment B).
Public Engagement
This item is on the agenda for the October 6, 2020 City Council meeting and will follow all
required postings and notifications. The public will have the opportunity to provide comment on
this item at or before the meeting.
CONCURRENCE
The Information Technology Department was involved in the evaluation of a 5-year renewal
agreement and concur with the recommendation 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: 2021 to 2025
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $29,943.00 $29,943.00 $149,715.00
State $0 $0 $0
Federal $0 $0 $0
Fees $0 $0 $0
Other: $0 $0 $0
Total $29,943.00 $29,943.00 $149,715.00
The department carries the ongoing operating cost of the service agreement in its annual budget.
For the FY2021 budget the Fire Department anticipated and budgeted for a $312 increase in cost
from the FY2020 rate. The expiring 5-year service agreement started with an annual rate of
$28,695 with an annual increase of $312 which resulted in a final annual service fee of $29,943.
During negotiations for the renewal agreement, the department was able to secure a flat annual
rate for the entire 5-year term. This will result in a savings of $312 for FY2021 and a total
agreement savings of $1,560.
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ALTERNATIVE
The City Council could reduce the years of the annual agreement or deny the request. This is
not recommended since this is the system that notifies our emergency response crews of a call
for service and needs to be in good working order at all times.
Attachments:
a - Final USDD Service Agreement
b - Sole Source Justification: US Digital Design
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US Digital Designs – Service Agreement Page 1 of 9
SERVICE AGREEMENT
This Service Agreement (“Agreement”) is made by and between US Digital Designs, Inc.
(“USDD”), with its principal place of business at 1835 East Sixth Street, Suite 27, Tempe,
Arizona 85281, and the following entity (“Customer”):
CITY OF SAN LUIS OBISPO
Fire Department Administration
2160 Santa Barbara Avenue
San Luis Obispo, CA 93401-5240
Attn: James Blatter, Administrative Analyst
Telephone: 805.781.7382
Email: jblatter@slocity.org
1. Recitals. The Customer requires USDD to provide software maintenance and hardware
repair services for its USDD fire station alerting system. USDD has agreed to service the
Customer’s System (as defined below) pursuant to the terms, conditions, and limitations of this
Agreement. In consideration of the foregoing, and for other good and valuable consideration, the
parties hereby agree to the terms set forth in this Agreement.
2. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:
a. “Additional Services” shall have the meaning set forth in Section 7, below;
b. “Application or App” shall mean the Phoenix G2 FSA Mobile Application for iOS
and Android mobile devices.
c. “Commencement Date” shall be November 1, 2020.
d. “Hardware” means a physically tangible electro-mechanical system or sub-system
and associated documentation provided to Customer by USDD, provided
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US Digital Designs – Service Agreement Page 2 of 9
however, Hardware shall not include any televisions or monitors manufactured by
third parties;
e. “Emergency Support” means telephone access for Customer’s “System
Administrator” (as defined below) to USDD’s senior staff and engineers in the
event of a Mission Critical Failure.
f. “Mission Critical Failure” means a failure in the materials, workmanship or
design of the System that causes any fire station served by the System to be
incapable of receiving dispatches through all communications paths, provided
however, that any such failure caused by operator error, internet or telephony
service outages, misuse or neglect of the System or any cause outside of USDD’s
direct control does not constitute a Mission Critical Failure.
g. “Services” shall have the meaning set forth in Section 3, below;
h. “Software” means software programs, including embedded software, firmware,
executable code, linkable object code, and source code, including any updates,
modifications, revisions, customization requested by Customer, copies,
documentation, and design data that are licensed to Customer by USDD;
i. “System” means all Hardware and Software purchased by Customer either
directly from USDD or authorized USDD Reseller under any contract, purchase
order, or arrangement that is used exclusively by Customer as part of its fire
station alerting system, provided however, that the term “System” specifically
excludes any components, hardware, or software provided by third parties,
including without limitation Customer’s computers, lap tops, computer
peripherals, monitors, televisions, routers, switches, operating systems, computer
programs, applications, internet and network connections, and any other parts or
items not provided to Customer directly by USDD;
j. “Term” means the period of time during which this Agreement is in effect,
including the Initial Term and all Additional Terms, as defined in Section 9,
below.
3. USDD Scope of Services. During the Term of this Agreement, USDD agrees to provide
Hardware repair service and Software updates and maintenance for the System (collectively the
“Services”). Subject to all other terms and conditions contained in the Agreement, the Services
shall include the following:
a. Technical phone support Monday through Friday from 08:00 to 17:30 MST,
excluding USDD holidays;
b. Remote access support Monday through Friday from 08:00 to 17:30 MST,
excluding USDD holidays;
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US Digital Designs – Service Agreement Page 3 of 9
c. Emergency Support, available 24 hours per day, for Customer’s System
Administrator in the event of a Mission Critical Failure;
d. Updates for all System Software, as and when released by USDD;
e. Twenty-four (24) App licenses per each ATX Station Controller that is part of the
System and covered under this Agreement. Use of the App shall be strictly
governed by the Mobile Application End User’s Agreement that must be accepted
by each user at the time the software is downloaded.
f. Repair of defective or malfunctioning Hardware (not otherwise covered under the
USDD warranty applicable to the Hardware) at USDD’s principal place of
business; and
g. Ground shipping for the return of repaired Hardware.
4. Hardware Repairs. If a Hardware component requires repair and a valid claim is made
during the Term, at its option, USDD will, at its principal place of business, either (1) repair the
Hardware at no charge, using new parts or parts equivalent to new in performance and reliability
or (2) exchange the Hardware with a product that is new or equivalent to new in performance
and reliability and is at least functionally equivalent to the original Hardware. When a product
or part is exchanged, any replacement item becomes the Customer’s property and the replaced
item becomes the property of USDD. Parts provided by USDD in fulfillment of the Services
must be used in the System to which this Agreement applies. Customer shall be responsible for
and bear all risks and costs of shipping any Hardware to USDD for repair. USDD shall be
responsible for and bear all risks and costs of returning any Hardware to Customer after repair or
replacement. Replacement Hardware will be returned to Customer configured as it was when the
Hardware was originally purchased, subject to applicable updates.
5. Claims. Prior to requesting Services, Customer is encouraged to review USDD’s online
help resources. Thereafter, to make a valid claim hereunder, Customer must contact USDD
technical support and describe the problem or defect with specificity. The first such contact must
occur during the Term. USDD’s technical support contact information can be found on USDD’s
web site: http://stationalerting.com/service-support/. Customer must use its best efforts to assist
in diagnosing defects, follow USDD’s technical instructions, and fully cooperate in the
diagnostic process. Failure to do so shall relieve USDD of any further obligation hereunder.
6. Limitations. The Services specifically and expressly exclude any repair, software
installation, update, or other service that is necessitated by the Customer’s misuse or neglect of
the System, damage arising from Customer’s failure to follow instructions relating to the
product’s use, cosmetic damage, including but not limited to scratches, dents and broken plastic
on ports, alterations or repairs to the System made by any person other than an authorized USDD
representative, failure of environmental controls or improper environmental conditions,
modification to alter functionality or capability without the written permission of USDD, use
with non-USDD products, any damage caused by fire, flood, vandalism, terrorism, riot, storm,
lightning, or other acts of nature or civil unrest. The Services shall not include disassembly or
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re-installation of any Hardware at Customer’s site. The Services shall not include the repair of
any Hardware that is determined to be obsolete or irreparable in USDD’s sole discretion. The
Services shall not include repair or replacement of televisions or monitors manufactured by third
parties. Repair or replacement of such components shall be subject exclusively to the
manufacturer’s warranty, if any. USDD shall not be liable to provide Services at any time when
Customer is in breach of any obligation to USDD under this Agreement or any other contract.
7. Additional Services by USDD. Except for the Services, all other acts or performances
requested or required of USDD by Customer (“Additional Services”) will be charged at USDD’s
then current rates and will be in addition to all other fees and charges payable by Customer under
this Agreement. Additional Services shall include (without limitation) Customer’s use of
Emergency Support in the absence of a Mission Critical Failure and any Services provided by
USDD on a rush basis or during hours not included in the description of the Services set forth
above. Customer shall pay all invoices for Additional Services within 30 days. Invoices
remaining unpaid for more than 30 days shall bear interest at 18% per annum.
8. Authorized Support Contacts. In order to facilitate USDD’s delivery of the Services,
Customer shall appoint a minimum of one and a maximum of three contact people who are each
authorized to make use of the support services (“Authorized Contacts”). The Customer must
ensure that the Authorized Contacts have adequate expertise and experience to make an accurate
description of malfunctions to make it possible for USDD to handle reports efficiently. Customer
is responsible to select those personnel for this task who are suitable for it by means of training
and function, and who have knowledge of Customer’s network, hardware, and software systems.
The Authorized Contacts must also have completed USDD product training.
At least one Authorized Contact should be available to assist USDD as needed during the
support process. Authorized Contacts are responsible for coordinating any actions needed by
Customer’s personnel or contractors including obtaining additional information from field or
dispatch personnel, data network or communications system troubleshooting, and physical
inspection or actions on the System components.
9. Customer Facilitation of Services. Customer will be responsible for providing the
following:
a. The provision of remote access to the System, as more specifically described in
Section 10 below;
b. The procurement and/or provision of all computers, peripherals, and consumables
(collectively “Customer Equipment”), including printer paper, toner and ink
necessary for the operation, testing, troubleshooting, and functionality of the of
the System;
c. Any configuration and regular maintenance that is normally undertaken by the
user or operator as described in the operating manual for the Customer
Equipment, including the replacement of UPS batteries as necessary;
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d. Providing a stable means of data transmission between the System Gateway and
each fire station serviced by the System necessary for the installation, testing and
functionality of the of the System; such means of data transmission may include,
but is not limited to, TCP/IP, data modems, leased lines, radios, etc;
e. The correct use of the System in accordance with USDD’s operating instructions;
and
f. The security and integrity of the System.
10. Remote Access. USDD requires remote network access to the Customer’s System,
including its Communications Gateways, Station Controllers, and other USDD-supplied
equipment through Secure Shell (SSH) to perform implementation and support tasks under this
Agreement. To enable this the Customer will provide USDD support personnel VPN or similar
remote network access to the System for USDD support personnel (“Customer Support”) to
effectively troubleshoot critical or complex problems and to expedite resolution of such issues.
Remote network access is also used to install core System software upgrades and customized
software. USDD will only access Customer’s System with the knowledge and consent of
Customer.
a. Alternative to Network Access. If the Customer elects not to provide remote
network access to the System, then USDD may not be able to perform some
support functions. Customers that elect not to routinely provide network access
may temporarily reinstate this access to allow USDD to perform the above
services. The following services will not be performed without this access:
• System software upgrades
• System software customization
• Network troubleshooting assistance including packet capture and network
monitoring on USDD devices
• Detailed log analysis
• Bulk updates to System database tables
• Troubleshooting that requires low-level system access or large file transfer
b. Timely Access. Customers must ensure that remote access is available prior to
notifying USDD of a support request. In the event that the Customer is unable to
provide remote access, USDD will not be required to provide support outside
those tasks that do not require remote access, and any corresponding resolution
response times will not apply.
c. Physical Security Tokens. USDD has multiple software engineers that provide
after-hours support and these engineers do not typically take security tokens from
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the USDD office. If the customer requires the use of physical security tokens this
may delay after hours service.
11. Ongoing Service Term, Renewal and Termination. The initial term of this Agreement
shall begin on the Commencement Date and shall continue for one year (“Initial Term”). Unless
previously terminated as set forth in this Section, Customer may renew this agreement for four
(4) additional one-year terms (each an “Additional Term”) by giving written notice of
Customer’s intent to renew at least 30 days prior to the expiration of the Initial Term or any
Additional Term, as the case may be, or by timely payment of the “Annual Fee” (as defined
below). This Agreement may be terminated by either party by providing written notice of
termination to the other party at least 30 days prior to the expiration of the Initial Term or any
Additional Term. USDD may terminate this Agreement for any breach hereof upon 30 days
written notice. The notice shall specify the nature of the breach. If Customer fails to cure the
breach within 30 days, this Agreement shall be terminated. Notwithstanding the foregoing,
USDD may terminate this Agreement immediately upon non-payment of any sum due from
Customer under this Agreement or any other contract. Upon termination of this Agreement, all
sums previously paid to USDD shall be nonrefundable.
12. Annual Fees. On or before the first day of the Initial Term and each Additional Term
(each a “Due Date”), Customer shall pay USDD an Annual Fee in advance for the Services and
to be delivered hereunder (the “Annual Fee”). The Annual Fee shall be $29,943.00. Customer
shall pay the Annual Fee on or before the Due Date or 30 days after the date of the invoice,
whichever is later. Invoices remaining unpaid shall bear interest at 18% per annum. Annual
Fees are nonrefundable.
13. Purchase of Additional Hardware and Software. Customer acknowledges that the
Annual Fee covers only the Hardware and Software currently purchased and owned by
Customer. In the event Customer purchases additional Hardware and Software during any Term
of this Agreement, upon expiration of the warranty on such additional Hardware and Software,
Customer and USDD may enter into separate Service Agreements for such Hardware or
Software, or include the annual fee for servicing such additional Hardware and Software to the
Annual Fee, as the parties may mutually agree.
14. Intellectual Property. Customer hereby agrees and acknowledges that USDD owns all
rights, title, and interest in and to the Intellectual Property. Customer agrees to not remove,
obscure, or alter USDD’s or any third-party’s copyright notice, trademarks, or other proprietary
rights notices affixed to or contained within or accessed in conjunction with or through the
Hardware or Software. Nothing herein shall be deemed to give, transfer, or convey to Customer
any rights in the Intellectual Property except as specifically and expressly set forth in this
Agreement or an express written license previously granted to Customer by USDD. All rights in
and to the Intellectual Property not specifically and expressly conveyed to Customer are reserved
and retained by USDD.
15. License. At all times that Customer is in compliance with the terms of this Agreement
and all other agreements between the Parties, Customer shall have a non-exclusive, non-
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transferable, fully paid license to use the Software, but only in conjunction with the Hardware
provided by USDD and only in conjunction with Customer’s fire station alerting system.
16. Reinstatement. If Customer elects not to renew this Agreement for any Additional Term
or otherwise terminates this Agreement, Customer may reinstate this Agreement upon the
following terms:
a. Reinstatement of this Agreement must occur within five (5) years from the Initial
Term or the last Additional Term elected by Customer, whichever occurs later.
USDD reserves the right to reinstate older Systems or not reinstate newer Systems
in its sole discretion.
b. The multiplier for calculation of the Annual Fee shall increase by no more than 3
percentage points from the multiplier stated above. The multiplier for the new
Annual Fee shall be at the sole discretion of USDD.
c. Customer shall pay a Reinstatement Fee along with the Annual Fee prior to the
Commencement Date. The Reinstatement Fee and Annual Fee shall be calculated
using the new multiplier described above. The Reinstatement Fee shall be a sum
equal to two times the new Annual Fee, provided, however, if the System has
been out of service and support for one year or less, the Reinstatement Fee shall
be the amount of the new Annual Fee. The Reinstatement Fee is non-refundable.
d. If Customer reinstates this Agreement and then declines to renew this Agreement
for an Additional Term or otherwise terminate this Agreement, the System shall
be deemed by USDD to have been abandoned by Customer. USDD will not
provide further Services for the System, and Customer will not be allowed to
reinstated service and support of the System through another Service Agreement.
17. Limited Warranty. USDD warrants that the Services performed hereunder will be
carried out with due care and attention by qualified personnel. Defective Hardware subject to
repair hereunder will be repaired to good working order. TO THE EXTENT PERMITTED BY
LAW, THIS WARRANTY AND REMEDIES SET FORTH ABOVE ARE EXCLUSIVE AND
IN LIEU OF ALL OTHER WARRANTIES, REMEDIES AND CONDITIONS, WHETHER
ORAL OR WRITTEN, STATUTORY, EXPRESS OR IMPLIED. AS PERMITTED BY
APPLICABLE LAW, USDD SPECIFICALLY DISCLAIMS ANY AND ALL
STATUTORY OR IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION,
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
AND WARRANTIES AGAINST HIDDEN OR LATENT DEFECTS. If USDD cannot
lawfully disclaim statutory or implied warranties then to the extent permitted by law, all such
warranties shall be limited in duration to the duration of this express warranty and to repair or
replacement service as determined by USDD in its sole discretion. No reseller, agent, or
employee is authorized to make any modification, extension, or addition to this warranty. If any
term is held to be illegal or unenforceable, the legality or enforceability of the remaining terms
shall not be affected or impaired. USDD disclaims any representation that it will be able to repair
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any hardware under this warranty or make a product exchange without risk to or loss of the
programs or data stored thereon.
18. Force Majeure. Except for Customer’s duty to pay sums due hereunder, neither party
will be liable for any act, omission, or failure to fulfill its obligations under this Agreement if
such act, omission or failure arises from any cause beyond its control including acts of nature,
strikes, lockouts, riots, acts of war, acts of terrorism, epidemics, governmental action after the
date of this Agreement, fire communication line failures, power failures, earthquakes or other
disasters. The party unable to fulfill its obligations due to Force Majeure will immediately:
e. Notify the other in writing of the reasons for its failure to fulfill its obligations and
the effect of such failure; and
f. Use all responsible endeavors to avoid or remove the cause and perform its
obligations.
19. Headings and Usage. The headings, captions, and section numbers contained herein are
provided for convenience only and are not part of the terms of this Agreement. When the
context of the words used in this Agreement indicate that such is the intent, words in the singular
shall include the plural, and vice versa, and the references to the masculine, feminine or neuter
shall be construed as the gender of the person, persons, entity or entities actually referred to
require.
20. Waiver. No failure or delay, in any one or more instances, to enforce or require strict
compliance with any term of this Agreement shall be deemed to be a waiver of such term nor
shall such failure or delay be deemed a waiver of any other breach of any other term contained in
this Agreement.
21. Governing Law; Parties in Interest. This Agreement will be governed by and
construed according to the laws of the State of California without regard to conflicts of law
principles and will bind and inure to the benefit of the successors and assigns of the parties.
22. Execution in Counterparts. This Agreement may be executed in counterparts, all of
which taken together shall be deemed one original. The date of this Agreement shall be the latest
date on which any party executes this Agreement.
23. Entire Agreement. This Agreement contains the entire understanding between the
parties, and supersedes any prior understandings and agreements between or among them with
respect to the subject matter hereof. This Agreement may not be amended, altered, or changed
except by the express written agreement of the parties.
24. Joint Effort. This Agreement has been drafted through the joint efforts of the parties and
shall not be construed against any party on the basis that such party is the drafter of this
Agreement or any term thereof.
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Page 9 of 9
25.Savings Clause. In the event any part, provision, or term of this Agreement is deemed to
be illegal or unenforceable, this Agreement shall be construed as if such unenforceable part,
provision, or term had not been included herein. Such illegal or unenforceable part, provision, or
term shall be deemed revised to the extent necessary to cure its defect and such revision and the
remainder of the Agreement shall be and remain in full force and effect.
26.Customer Representative. The undersigned representative of Customer hereby
represents and warrants that s/he has the authority to bind Customer and that the execution,
delivery and performance by Customer under this Agreement will not violate the provisions of
any law, rule, regulation or policy, and will not conflict with or result in the breach or
termination or constitute a default under any agreement or instrument to which Customer is a
party.
27.Customer’s Standard Terms and Conditions. USDD agrees to comply with and be
bound by Customer’s standard terms and conditions attached hereto as Exhibit “A” and
incorporated herein by this reference. In the event there is a conflict between the terms and
conditions in Exhibit “A” and the terms and conditions hereinabove, the term or condition in
Exhibit “A” shall control.
28.Insurance Requirements. USDD agrees to comply with the Customer’s Insurance
requirements attached hereto as Exhibit “B” and incorporated herein by this reference.
US Digital Designs, Inc.:
By _________________________________
DOMINIC MAGNONI, Vice President
City of San Luis Obispo
____________________________
Shelly Stanwyck, Assistant City Manager
Date:_______________________________
Agreed as to form
___________________
Christine Dietrick, City Attorney
US Digital Designs – Service Agreement
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EXHIBIT A
GENERAL TERMS AND CONDITIONS
1.Insurance Requirements. The Contractor shall provide proof of insurance in the form,
coverages and amounts specified in Section E of the City’s Request for Proposal referenced in
paragraph 2 of the Agreement, unless changes are otherwise approved and agreed to in writing
between the parties. If the Agreement is entered into outside of a Request for Proposal,
Contractor shall provide proof of insurance in the form in the form coverages and amounts
specified in Exhibit B
2.Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out
and complete the work hereunder in compliance with all federal, state, county, city, and special
district laws, ordinances, and regulations.
3.Laws to be Observed. The Contractor shall keep itself fully informed of and shall
observe and comply with all applicable state and federal laws and county and City of San Luis
Obispo ordinances, regulations and adopted codes during its performance of the work.
4.Payment of Taxes. The contract prices shall include full compensation for all taxes that
the Contractor is required to pay.
5.Permits and Licenses. The Contractor shall procure all permits and licenses, pay all
charges and fees, and give all notices necessary.
6.Safety Provisions. The Contractor shall conform to the rules and regulations pertaining
to safety established by OSHA and the California Division of Industrial Safety.
7.Public and Employee Safety. Whenever the Contractor’s operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the City,
furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other
devices and take such other protective measures as are necessary to prevent accidents or damage
or injury to the public and employees.
8.Preservation of City Property. The Contractor shall provide and install suitable
safeguards, approved by the City, to protect City property from injury or damage. If City
property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or
restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as
good as when the Contractor began work.
9.Immigration Act of 1986. The Contractor warrants on behalf of itself and all
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subcontractors engaged for the performance of this work that only persons authorized to work in
the United State pursuant to the Immigration Reform and Control Act of 1986 and other
applicable laws shall be employed in the performance of the work hereunder.
10. Contractor Non-Discrimination. In the performance of this work, the Contractor
agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in
discrimination in employment of persons because of age, race, color, sex, national origin or
ancestry, sexual orientation, or religion of such persons.
11. Work Delays. Should the Contractor be obstructed or delayed in the work required to be
done hereunder by changes in the work or by any default, act, or omission of the City, or by
strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials,
equipment, or labor due to federal government restrictions arising out of defense or war
programs, then the time of completion may, at the City’s sole option, be extended for such
periods as may be agreed upon by the City and the Contractor. In the event that there is
insufficient time to grant such extensions prior to the completion date of the contract, the City
may, at the time of acceptance of the work, waive liquidated damages that may have accrued for
failure to complete on time, due to any of the above, after hearing evidence as to the reasons for
such delay, and making a finding as to the causes of same.
12. Payment Terms. The City’s payment terms are 30 days from the receipt of an original
invoice and acceptance by the City of the materials, supplies, equipment, or services provided by
the Contractor (Net 30).
13. Inspection. The Contractor shall furnish City with every reasonable opportunity for City
to ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done, and all materials furnished, if any,
shall be subject to the City’s inspection and approval. The inspection of such work shall not
relieve Contractor of any of its obligations to fulfill its contract requirements.
14. Audit. The City shall have the option of inspecting and/or auditing all records and other
written materials used by Contractor in preparing its invoices to City as a condition precedent to
any payment to Contractor.
15. Interests of Contractor. The Contractor covenants that it presently has no interest, and
shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner
or degree with the performance of the work hereunder. The Contractor further covenants that, in
the performance of this work, no subcontractor or person having such an interest shall be
employed. The Contractor certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that, in
the performance of the work hereunder, the Contractor shall at all times be deemed an
independent contractor and not an agent or employee of the City.
16. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by
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law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant
shall indemnify, defend, and hold harmless the City, and its elected officials, officers,
employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of
action, claims, liabilities, obligations, judgments, or damages, including reasonable legal
counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or
Consultant’s failure to perform its obligations under this Agreement or out of the operations
conducted by Consultant, including the City’s active or passive negligence, except for such loss
or damage arising from the sole negligence or willful misconduct of the City. In the event the
City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising
from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the
City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense,
including reasonable legal fees, incurred in defense of such claims.
(b) Non-design, construction Professional Services: To the extent the Scope of Services
involve a “construction contract” as that phrase is used in Civil Code Section 2783, this
paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including,
but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify,
defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and
agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities,
obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of
litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to
perform its obligations under this Agreement or out of the operations conducted by Consultant,
except for such loss or damage arising from the active negligence, sole negligence or willful
misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit,
or other adversarial proceeding arising from Consultant’s performance of this Agreement, the
Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the
City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of
such claims.
(c) Design Professional Services: In the event Consultant is a “design professional”, and the
Scope of Services require Consultant to provide “design professional services” as those phrases
are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B.
To the fullest extent permitted by law (including, but not limited to California Civil Code
Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its
elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and
against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert
consultant and expert witness fees arising out of, pertaining to or relating to, the negligence,
recklessness or willful misconduct of Consultant, except to the extent caused by the sole
negligence, active negligence or willful misconduct of the City. Negligence, recklessness or
willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed
to be the negligence, recklessness or willful misconduct of Consultant unless adequately
corrected by Consultant. In the event the City Indemnitees are made a party to any action,
lawsuit, or other adversarial proceeding arising from Consultant’s performance of this
Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s
option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees,
incurred in defense of such claims. In no event shall the cost to defend charged to Consultant
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under this paragraph exceed Consultant’s proportionate percentage of fault. However,
notwithstanding the previous sentence, in the event one or more defendants is unable to pay its
share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and
confer with other parties regarding unpaid defense costs.
(d) The review, acceptance or approval of the Consultant’s work or work product by any
indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense
obligations. This Section survives completion of the services or the termination of this contract.
The provisions of this Section are not limited by and do not affect the provisions of this contract
relating to insurance.
17. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise
dispose of the contract, or its right, title or interest, or its power to execute such a contract to any
individual or business entity of any kind without the previous written consent of the City.
18. Termination for Convenience. The City may terminate all or part of this Agreement for
any or no reason at any time by giving 30 days written notice to Contractor. Should the City
terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or
off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total
purchase price; (b) for custom products, the less of a reasonable price for the raw materials,
components work in progress and any finished units on hand or the price per unit reflected on
this Agreement. For termination of any services pursuant to this Agreement, the City’s liability
will be the lesser of a reasonable price for the services rendered prior to termination, or the price
for the services reflected on this Agreement. Upon termination notice from the City, Contractor
must, unless otherwise directed, cease work and follow the City’s directions as to work in
progress and finished goods.
19. Termination. If, during the term of the contract, the City determines that the Contractor
is not faithfully abiding by any term or condition contained herein, the City may notify the
Contractor in writing of such defect or failure to perform. This notice must give the Contractor a
10 (ten) calendar day notice of time thereafter in which to perform said work or cure the
deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days
specified in the notice, such shall constitute a breach of the contract and the City may terminate
the contract immediately by written notice to the Contractor to said effect. Thereafter, neither
party shall have any further duties, obligations, responsibilities, or rights under the contract
except, however, any and all obligations of the Contractor’s surety shall remain in full force and
effect, and shall not be extinguished, reduced, or in any manner waived by the terminations
thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed
from the beginning date in which the breach occurs up to the day it received the City’s Notice of
Termination, minus any offset from such payment representing the City’s damages from such
breach. “Reasonable value” includes fees or charges for goods or services as of the last
milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in
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the Agreement payment schedule; compensation for any other work, services or goods
performed or provided by the Contractor shall be based solely on the City’s assessment of the
value of the work-in-progress in completing the overall work scope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a
full and complete accounting of costs. In no event, however, shall the Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
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Exhibit B – Insurance
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the performance
of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1.Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2.Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3.Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4.Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1.General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2.Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3.Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4.Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared
to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and
volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1.The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2.For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3.The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4.Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
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suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30)days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of
no less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be
subject to all of the requirements stated herein
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City of San Luis Obispo Sole Source Justification Form
US Digital Designs, Inc
It is the policy of the City of San Luis Obispo to solicit quotations or bids for purchases of commodities or services for
specified dollar amounts and to select vendors on a competitive basis (See City of San Luis Obispo Financial
Management Manual, Section 201, Exhibit 201-B).
Pursuant to San Luis Obispo Municipal Code Chapter 3.24.060, certain acquisitions in which the products or services
may only be obtained from a single source may be purchased without engaging in bidding procedures. Such Sole
Source acquisitions must be justified in sufficient detail to explain the basis for suspending the usual competitive
procurement process and approved by the approving authority before such a purchase is made.
1. What product or service is being requested? Why is it necessary?
The Fire Department is requesting the service and maintenance of the Fire Department’s Alerting
System, which is used to notify first responders of a call for service and prompts an emergency
response. It is necessary to ensure firefighters are notified of emergencies requiring their services so
they can promptly respond to the emergency. The current system has been in place since 2010.
2. Is this “brand” of product or services offered the only one that meets the City’s requirements? If
yes, what is unique about the product/services?
While there are many different alerting systems available in the United States that can meet the City’s
requirements, US Digital Design is the only supplier that can service and maintain the system that the
City currently utilizes. Seeking a new vendor would require a system-wide replacement of hardware
and software, which would come at great cost and staff time.
3. Is the product or service proprietary, or is it available from various dealers? Have you verified this?
The product that US Digital Design provides is proprietary and unavailable to other dealers. This has
been verified.
4. Have other products/vendors been considered? If yes, which? And how did they fail to meet the
City’s requirements?
Due to the lack of funding and staff capacity to replace the onsite station alerting system, staff did not
pursue this option. Both the fire department and IT department concur that the current system
operates appropriately and can do so for the next five years. Both departments are beginning the
planning process of a potential replacement and/or significant upgrade at the end of the 5 -year
renewal agreement.
5. Is the purchase an upgrade or addition to an existing system or brand of products adopted citywide?
If so, will purchase of this product avoid “switching” costs as opposed to purchasing another
product or service (e.g., additional training required; data conversion; implementation of a new
system; etc.)?
The purchase is to service the existing system that the Fire Department has in place. This purchase
will avoid the replacement of hardware, software, and significant training to fire department staff, IT
staff, and emergency communication dispatchers. The cost of implementing a new system would be
significantly higher than extending the service agreement currently in place. Considering the financial
impacts of COVID-19 and as part of the City’s Fiscal Health Contingency Plan, the Department is
working limit non-essential expenditures. Because the current system can continue to operate,
replacing the system would be non-essential.
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6. Is this a request for services by a contractor with necessary, unique, and critical knowledge of
established City systems or programs? If so, will the use of the contractor’s services avoid other
costs (e.g., significant staff time in compiling information, data transfers, etc.)?
Yes, the City does not possess the capabilities nor expertise to provide service and maintenance to
the system due to proprietary and technical concerns.
7. What is the quoted price for the product or services, and is it reasonable (based on other products
or services in the same field or based on historical pricing for the City for similar products or
services)?
The quoted price is $29,943, with a flat annual fee for the following four years. The price is
reasonable, based on historical pricing. The quoted rate is equal to the FY2020 rate, and the expiring
agreement included an annual increase of $312. The Fire Department anticipated and budget for an
increase from last year’s rate and will see savings due to the negotiated flat fee. Additionally, the
cost to replace the system would be high and it is reasonable that the service/maintenance fee with
a new system would be similar in cost.
James Blattler, Administrative Analyst, Fire Department
Requester
__________________________________ ________________
Dan Clancy, Purchasing Analyst Date
8/29/2020
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Department Name: Administration
Cost Center: 1005
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: NA
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official
Chris Read, Sustainability Manager
SUBJECT: UPDATE TO THE SLO CLIMATE COALITION MEMORANDUM OF
UNDERSTANDING
RECOMMENDATION
Approve the updated Memorandum of Understanding (Attachment A) between the City of San
Luis Obispo and the SLO Climate Coalition to continue a partnership to help achieve the Climate
Action objectives of the 2020 Climate Action Plan for Community Recovery and related Major
City Goal work program tasks.
DISCUSSION
Background
In January of 2017, the City Council made Climate Action a Major City Goal in the 2017-19
Financial Plan. As a part of the Major City Goal process, a work program was established and
approved by the City Council on June 20, 2017. One of the primary objectives of the work
program is to “Support the establishment of a ‘Community Climate Action Coalition” by
engaging other jurisdictions, professionals, elected officials, and residents to enhance community
education, participation, and advocacy in all City and regional climate action adaptation and
GHG emission reduction efforts.”
The Task Force, which is now called SLO Climate Coalition, is an unincorporated organization
and is a wholly independent group of interested individuals. The SLO Climate Coalition is not
considered a “legislative body” within the meaning of the Brown Act. In October of 2017, the
Council adopted the original MOU to ensure clarity of the Task Force’s intent, roles, scope, and
objectives as the City and the Task Force work toward achieving the City’s Climate Action goals
which are of mutual interest to both groups.
Since that time, a number of things have changed that require the MOU to be updated.
Substantive changes that have occurred since October 2017 include:
1. The organization changed its name from “Climate Change Task Force” to the “SLO
Climate Coalition.”
2. The organization changed its fiscal sponsor from The Community Foundation San Luis
Obispo County to Ecologistics.
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3. Completion of the 2017-19 Climate Action Major City Goal work program, substantive
progress on the 2019-21 Climate Action Major City Goal work program, and re-
organization of City objectives as part of the 2020-21 Major City Meta-Goal.
4. Rapid growth of volunteer participation in the SLO Climate Coalition and subsequent
need to reorganize its governance and work planning approach.
5. An agreement between City staff on SLO Climate Coalition Leadership to have the MOU
focus on process and the Coalition’s annual work plan to focus on the content of the
work.
6. A desire to reaffirm and make explicit the distinction between the work that the SLO
Climate Coalition does consistent with the MOU with the City and the work it does
outside of the MOU.
Memorandum of Understanding
The updated MOU (Attachment A) re-establishes a relationship with the SLO Climate Coalition
and City and provides general requirements and responsibilities for each group. Key features
include the following:
1. The SLO Climate Coalition will function as an independent group working with the City
to support and encourage Climate Action Plan implementation and major city goal work
program objectives by assisting with research, evaluation, public engagement, design,
and implementation of objectives.
2. The SLO Climate Coalition will create an Annual Work Plan which will include their
mission and anticipated scope of activities for the year with a clear delineation of what
work is being done consistent with the MOU.
3. The SLO Climate Coalition will work to be a primary voice in the community to engage
the public and promote the City’s climate action efforts and organize community
education and collaboration to inform residents and businesses about greenhouse gas
reducing opportunities.
4. The SLO Climate Coalition will submit an annual report on their annual work plan that
describes the actions taken during the previous calendar year.
Climate Coalition – 2019 Annual Report and 2020 Work Plan
The previous MOU required that the SLO Climate Coalition submit to staff an Annual Report
and Work Plan. The Work Plan, provided as Attachment B, outlines the work that the Coalition
has committed to for calendar year 2020; the 2019 Annual Report, provided as Attachment C,
provides highlights of SLO Climate Coalition activity in 2019.
Sustainability Manager and Councilmember Representative
The Sustainability Manager has served as staff liaison to the SLO Climate Coalition, with regular
attendance and additional support from the Sustainability and Natural Resources Off icial as
identified in the MOU. The role of the designated Councilmember will be to express the position
of the Council and provide input as a Council representative, keep council aware of SLO Climate
Coalition work, and to maintain familiarity with the membership, work program, and efforts of
the SLO Climate Coalition. The current Council representative is Mayor Harmon.
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Policy Context
Support for the SLO Climate Coalition is considered in the Climate Action Major City Goal and
Meta Goal Work Program. Further, implementation of the Climate Action Plan for Community
Recovery is dependent on the outreach and technical support of the SLO Climate Coalition.
Specific work will be provided by the Climate Coalition in support of the building retrofit
program in the 2020-21 meta-goal (e.g., researching existing building conditions and identifying
existing rebate and financing opportunities) and will provide technical support for electric
vehicle planning that had been included in the 2019-21 Climate Action Major City Goal.
Public Engagement
The City worked with the Climate Coalition to identify portions of the original MOU that
required updating. Regarding the Climate Coalition work program, the Climate Coalition held an
open call for project proposals and continues to accept them on the rolling basis. The City will be
submitting two applications to provide technical support for electric vehicle analysis planned in
2021 and outreach support to better understand local market conditions regarding existing
buildings and rebate and financing opportunities to support local retrofits. These projects will be
added to the project plan once approved and will help the City complete open tasks in the Meta
Goal and in carryover tasks from the 2019-21 Financial Plan.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $10,000 $10,000
State
Federal
Fees
Other:
Total $10,000 $10,000
The City Council has already established funding of $10,000 for 2020-21in Natural Resources
budget (101-1005-61013) to provide support to the SLO Climate Coalition for tasks that
implement the MOU. As identified in the MOU, these funds are to be associated with
objectives/tasks outlined in this agreement and use of funds must be approved by the City. There
is otherwise no direct fiscal impact associated with the recommended action.
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ALTERNATIVES
1. Modify the MOU. The City Council should provide specific direction on what parts of the
MOU should be modified.
2. Do not approve the MOU. This is not recommended as this action would leave in place the
existing MOU.
Attachments:
a - 2020 MOU Update
b - 2020 Climate Coalition Work Plan
c - 2019 Climate Coalition Annual Report
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SLO CLIMATE COALITION
This Memorandum of Understanding (“Agreement”) is entered into on ________________(the “Effective
Date”), by and between the City of San Luis Obispo, a municipal corporation and charter city (herein
referred to as “City”) and the SLO Climate Coalition, an unincorporated association. City and the SLO
Climate Coalition are sometimes referred to herein as “the Parties.”
WITNESSETH
WHEREAS, in January 2017 the City made Climate Action a Major City Goal in the 2017-2019 Financial
Plan with an overall goal of reducing citywide greenhouse gas (GHG) emissions and with a specific work
program to update/implementation of the Climate Action Plan, assess requirements/achieve a net-zero city
target, develop energy efficiency incentives, improve energy efficiency in City facilities, and to
identify/assign resources to perform the work needed to achieve the objectives; and
WHEREAS, the 2017-19 Major City Goal work program indicated that the City would support the
establishment of a community climate action coalition by engaging other jurisdictions, professionals,
elected officials, and residents to enhance community education, participation, and advocacy in all City
and regional climate action adaptation and GHG emission reduction efforts; and
WHEREAS, the support of a community climate coalition was reaffirmed in the 2019-21 Financial Plan
and in the 2020-21 mid-year budget revision; and
WHEREAS, the City Council adopted the Climate Action Plan for Community Recovery (2020 Climate
Action Plan) on August 18, 2020 that adopted a communitywide target of carbon neutrality by 2035; and
WHEREAS, the 2020 Climate Action Plan notes that different organizations are uniquely capable of
certain actions and focuses most directly on government actions while mentioning the importance of
community and non-governmental organization action; and
WHEREAS, the city’s intent in supporting a coalition is to work with community members/leverage
experience in climate action as well as involve, and keep informed, the community’s residents and
businesses in the city’s climate action efforts; and
WHEREAS, the SLO Climate Coalition, a group of community members, has said coalition – to function
as an independent group working with the City to accomplish major city goal work program objectives
by assisting with research, evaluation, public engagement, design, and implementation of objectives; and
WHEREAS, City recognizes that the members of the SLO Climate Coalition will have complimentary
experience and will be able to support the City’s GHG reduction and community outreach goals, and
through this MOU, the Parties wish to work together toward the attainment of mutual goals; and
NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements
herein set forth, City and the SLO Climate Coalition hereby agree as follows:
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TERMS
1. Replacement. Upon execution, this Memorandum of Understanding shall replace any previous
agreements between the SLO Climate Coalition (or any previous names it has had) and the City.
2. Recognition of Mutual Benefit. It is in the interest of the City to explore opportunities for
partnership in achieving the goals of the climate action major city goal – reducing communitywide
greenhouse gas emissions. The City and the SLO Climate Coalition have aligned goals in this regard and
this agreement may serve as a first step for future agreements and a broader scope relative to future climate
action objectives.
a. The SLO Climate Coalition will select a primary point of contact between the SLO Climate
Coalition and the City’s Sustainability Manager.
b. The City’s Sustainability Manager and a Councilmember will be designated as Liaisons to the
SLO Climate Coalition to provide updates on City’s climate related activities, communicate back
to staff and council, and to provide general support to the SLO Climate Coalition on an ongoing
basis
c. Meetings of the SLO Climate Coalition are expected to be open to individuals who are interested
in being involved in climate action efforts and meetings will be as inclusive as possible to those
who want to contribute.
3. Scope and Objectives. The SLO Climate Coalition will support implementation of the City’s
Climate Action Plan with particular attention given to the high impact objectives and will work to enhance
community education, participation, and advocacy in all City and regional climate action adaptation and
GHG emission reduction efforts; and
a. SLO Climate Coalition Annual Work Plan: By Feb 28 of each year, the SLO Climate Coalition
will provide the City with a SLO Climate Coalition Annual Work Plan. The annual work plan will
include the mission of the SLO Climate Coalition and include the anticipated scope of activities
for the year. The work plan will clearly delineate activities and funding in service to this agreement
from other non-MOU related SLO Climate Coalition activities.
b. SLO Climate Coalition Year End Report: By February 28 of each year, the SLO Climate
Coalition will submit an annual report to the City Manager or their designee that describes the
actions the SLO Climate Coalition undertook during the previous calendar year.
c. Outreach and Community Engagement: The SLO Climate Coalition will maintain a positive
presence in the community and work to be a primary voice in the community to engage the public
and promote the City’s climate action efforts and organize community education materials, forums
and events to inform residents and businesses about greenhouse gas reducing opportunities.
d. Technical Support: The SLO Climate Coalition will work to help achieve the objectives/timelines
outlined in the Climate Action Plan, in particular:
i. The SLO Climate Coalition will help with the Climate Action Plan update adoption.
ii. The SLO Climate Coalition will help to implement the climate action plan to support the
City’s 2035 carbon neutrality goal.
iii. The SLO Climate Coalition will assist with research, advocacy to, and ongoing support of
Central Coast Community Energy (previously Monterey Bay Community Power)
including program design and other technical support.
4. Facilities. The City will allow the SLO Climate Coalition to use City facilities, pending
availability, and waive rental fees associated with the use of City facilities such as the Ludwick Center .
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5. Funding. The Climate Action Major City Goal work program identified limited funding to be
available from the City to support a Community Climate Action Coalition. These funds are to be
associated with objectives outlined in this agreement and the SLO Climate Coalition will notify the city
on how it intends to use said funds.
6. Termination of Agreement by City. Either party may terminate this MOU for any reason
whatsoever upon written 90-day notification of such termination.
7. Relationship of Parties. The SLO Climate Coalition shall be considered an independent
organization and not an agent, officer or employee of the City. SLO Climate Coalition officers, members,
affiliates, volunteers, employees and independent contractors shall not be considered agents, officers or
employees of the City.
8. Compliance with Laws. The SLO Climate Coalition shall comply with all applicable statutes,
ordinances, or regulations now or hereafter adopted by any federal, state or county governmental entity,
and with all ordinances, regulations, policies and guidelines now or hereafter adopted by the City. Upon
request by City, the SLO Climate Coalition agrees to have its members execute waivers and releases of
liability for any activities which in City’s opinion warrants such waivers and releases to be executed prior
to participation in such activity.
9. Amendments. The City Manager or designee will consider any proposed amendments to this
MOU. Proposed amendments that do not significantly affect scope, objectives, outcomes or deliverables
that are considered minor in nature may be approved by the City Manager or designee. Other material
amendments shall be reviewed for approval by the City Council.
10. Counterparts. This MOU may be executed in counterparts, each of which shall be deemed an
original and all of which, taken together, shall constitute one and the same instrument, binding on each
signatory thereto.
ATTEST CITY OF SAN LUIS OBISPO
___________________________________ ____________________________________
Teresa Purrington, City Clerk Heidi Harmon, Mayor
APPROVED AS TO FORM: SLO CLIMATE COALITION
___________________________________ ____________________________________
J. Christine Dietrick, City Attorney Eric Veium. Chair of SLO Climate Coalition
ECOLOGISTICS
___________________________________
Stacey Hunt, CEO at Ecologistics, Inc.
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SLO Climate Coalition
2020 Work Plan
Effective Feb 1 2020 to Jan 31 2021
Mission, Vision, Values
Vision
A vibrant, just, and climate-resilient Central Coast.
Mission
The SLO Climate Coalition brings together community expertise, creativity, and resources to
champion high impact regional climate solutions that inspire other communities to do the same.
Core Values
Our commitments are reflected in our core values.
Environmental Justice
We focus on solutions that will support and empower those disproportionately impacted by the
climate crisis. We are committed to everyone having a seat at the table and collectively building
a community driven response to our most pressing climate issues.
High Impact Solutions
We prioritize solutions that will have the biggest positive impact on the climate crisis. The
solutions we advance will dramatically increase our region’s decarbonization, resilience, equity,
and economic vitality. This will look like a future powered by carbon free energy; health ier,
resilient, and more affordable homes; electrified transportation and people -centric communities;
natural spaces and technologies that store carbon; and a circular economy that creates zero
waste.
Economic Vitality
Economic vitality requires stability. Pitting jobs against a stable climate is a false argument. In
fact, we believe addressing the climate crisis is the greatest wealth creation opportunity of our
time. We are committed to partnering with business to innovate, develop career opportunities,
and increase profits while becoming a socially just and climate -resilient Central Coast.
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Organizational Priorities
1. Operational Strategy
Development of the organizational framework and process for identifying, adopting, and
supporting programs and outreach efforts.
2. Recruitment
Identification of roles to support organizational development, communications, programs,
and outreach efforts. Development of job descriptions. Recruitment, selection, and on -
boarding and ongoing support of selected candidates.
3. Fundraising
Education and capacity building within the leadership team. 2 -years and 5-years goal
setting. Development of fundraising strategy. Preparing organization, fundraisers, and
materials for fundraising. Initial fundraising efforts.
4. Communications
Maintain Climate Coalition website. Social media drip messaging of climate -related
news, events, and city actions. Regular newsletters and action alerts. Monthly climate
coalition general meetings. Educational webinars. Year-end celebration.
5. Technology
Select, deploy, manage necessary tools to support an effective distributed organization .
Initiatives
1. Education
Educate about policies and programs consistent with mission, vision, and values.
2. Strategic Coalition Building
Establish partnerships with regional stakeholder groups and organizations to support of
our common mission, vision, and values.
3. Strategic Communications
Inform, educate, and advocate. Normalize a culture of climate leadership.
4. Orientation, Onboarding, or Referral
Create clear and meaningful opportunities for passionate, skilled community members to
contribute to regional climate leadership.
Programs
1. Unite the Central Coast for Action
Leads: John Smigelski, Eric Veium
Leadership Team Liaisons: Same
Timing: Ongoing
Description: 5 counties comprise MBCP. To support positive outcomes and work
together on major issues, it is critical that environmental organizations and
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advocates from the region develop a strong voice by working together on a
regular and continuing basis.
2. Resilient Energy Communities Assessment
Leads: Brian Aunger
Leadership Team Liaison: Eric Veium
Timing: Ongoing
Description: Developing a data set of the opportunities and existing examples of
resilient energy system infrastructure in the jurisdiction of Monterey Bay
Community Power (MBCP), is a foundational step towards establishing
standalone essential service districts connecting renewable electricity generation
capacity with where it is needed. The data set will support decisions on how to
spend electrical sales revenue to capitalize electrical resiliency projects. GIS
data tools have been developed to identify potential projects to make a
sustainable electrical landscape to support emergency resilience for critical
services. SLOCC’s Resilient Energy Assessment Team will mentor the collection
of community data by Cal Poly Masters candidates.
3. Micro-Community Collaborative
Leads: Artemisia Shine, Lauren Bell,
Leadership Team Liaison: Lauren Bell
Timing: Ongoing
Description: The education team will evaluate existing block level engagement
programs. Measuring against a designed criteria such as scalability, capit al cost,
and expected outcomes, the education team will present to the leadership team
the recommendation suited best for our community.
4. Existing Building Electrification Retrofit (in development)*
Leads: Mike Horgan, Jon Griesser
Leadership Team Liaisons: Same
Timing: TBD
Description: Support development of an existing building electrification retrofit
program.
Outreach Efforts
1. Clean Energy Choice for New Buildings
Leads: Mike Horgan, Jon Griesser, Justin Bradshaw
Leadership Team Liaison: Same
Timing: Mid 2020
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Description: This outreach effort will provide education about all electric new
buildings.
2. SLO City Climate Action Plan Adoption
Leads: Eric Veium
Leadership Team Liaison: Same
Timing: Late 2020
Description: This outreach effort will support education about the contents of the
SLO City Climate Action Plan update.
3. Drive Electric Week SLO
Leads: Barry Rands
Leadership Team Liaison: Justin Bradshaw
Timing: Late 2020
Description: Drive Electric Week SLO is part of National Drive Electric Week, "a
nationwide celebration to heighten awareness of today's widespread availability
of plug-in vehicles and highlight the benefits of all-electric and plug-in hybrid-
electric cars, trucks, motorcycles, bicycles, and more. They are fun to drive, are
less expensive and more convenient to fuel than gasoline vehicles, are better for
the environment, promote local jobs, and reduce our dependence on foreign oil.
Are you considering going electric? Come talk to owners who have successfully
done so."
4. Use Renewable Energy for EV Charging
Leads: Barry Rands
Leadership Team Liaison: Eric Veium, John Smigelski
Timing: Ongoing
Description: California is taking the lead in promoting renewable energy and it
has become so successful that there are days when the renewable supply
exceeds demand. The COVID-19 pandemic has exacerbated this trend. The sun
is shining even brighter but bu siness and industry are using less energy. That
could spell bad news for renewable energy providers who need revenue to payoff
construction loans. One way to boost demand during periods of peak renewable
energy is for EV owners to charge during daylight hours. This would also reduce
dependence on fossil fuel powered plants that operate after sundown. This
outreach effort aims to promote daylight EV charging throughout our area of
influence.
* The SLO Climate Coalition accepts program and campaign proposals on an ongoing basis.
Activities adopted after finalizing the work plan will be documented in the following year -end
report.
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Our 2019 Year End Report
This year, the SLO Climate Coalition expanded its membership exponentially and honed in on the vision, mission,
and core values that will most effectively lead to carbon neutrality by 2035.
Vision
A vibrant, just, and climate-resilient Central Coast.
Mission
The SLO Climate Coalition brings together community expertise, creativity, and resources to champion high impact
regional climate solutions that inspire other communities to do the same.
Core Values
Our commitments are reflected in our core values.
Environmental Justice
We focus on solutions that will support and empower those disproportionately impacted by the climate crisis. We
are committed to everyone having a seat at the table and collectively building a community driven response to our
most pressing climate issues.
High Impact Solutions
We prioritize solutions that will have the biggest positive impact on the climate crisis. The solutions we advance will
dramatically increase our region’s decarbonization, resilience, equity, and economic vitality. This will look like a
future powered by carbon free energy; healthier, resilient, and more affordable homes; electrified transportation and
people-centric communities; natural spaces and technologies that store carbon; and a circular economy that
creates zero waste.
Economic Vitality
Economic vitality requires stability. Pitting jobs against a stable climate is a false argument. In fact, we believe
addressing the climate crisis is the greatest wealth creation opportunity of our time. We are committed to partnering
with business to innovate, develop career opportunities, and increase profits while becoming a socially just and
climate-resilient Central Coast.
Principles
Rapid Decarbonization, Equity & Environmental Justice, Clean Economy & Jobs, Resilience, Share & Inspire
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Yearly Summary
In 2019, ten skilled leaders who comprised the Task Force guided issue-focused action teams that accomplished
impactful events and policies. Deputies were added to the teams with the most pressing issues. One of the
strengths of the SLO Climate Coalition is that each member plays a significant role in promoting carbon-free
initiatives as individuals outside of formal Coalition-sponsored action team events. The sum of the parts is greater
than the whole. While members work together to host major events and support collective issues, they also carry
out significant individual activities with the encouragement and support of the various action teams and in line with
the vision, mission, core values, and principles of the SLO Climate Coalition.
Many leaders and members attended a variety of conferences, seminars, symposiums, workshops that were
focused on reducing carbon emissions and participated in interactive digital meetings and webinars. Members
regularly networked and collaborated with local, state, national, and international innovators in carbon reduction.
This year, more of the task force leaders and action team members were selected to train others in relevant fields
and give presentations locally and beyond. Various organizations recognized the depth of knowledge held by many
of our action team members and they were invited to become members of boards and committees locally and
statewide. Also, a number of organizations sent representatives to the SLO Climate Coalition meetings to gain
insights and to network with coalition members. These and other businesses and organizations participated in the
many SLO Climate Coalition events throughout the year.
SLO Climate Solutions Series
Members of the SLO Climate Coalition assisted SLO City staff in designing, organizing, and promoting this series of
climate solutions focused events. They worked on procuring venues, speakers, and food as well as organizing
around making them zero waste events and networked with nonprofits who promoted carbon-reducing actions tied
to the theme of each event.
The series consisted of 5 major events in 2019:
●A “kickoff celebration” for SLO City becoming carbon neutral by 2035
●Climate Solutions That Work with Hal Harvey
●Decarbonizing Our Future With Better Buildings
●National Drive Electric Week
●Tiny Footprint Expo: Sustainability in Action
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Community Choice
One major accomplishment this year for decarbonization was the successful campaign by the Community Choice
Energy (CCE) Action Team to enroll all SLO County cities except Atascadero into Monterey Bay Community Power
(MBCP) within a very short timeline. This was the result of spending hours contacting businesses, residents, and city
council members and attending and speaking at city council meetings. The momentum across the cities in San Luis
Obispo County encouraged neighboring cities in Santa Barbara County and Santa Barbara County to also join
MBCP, uniting the Central Coast. The team created a positive dialogue in print and online media promoting the
benefits of community choice energy ahead of rollout in 2020.
Goals for the upcoming year include developing and supporting programs and policies that influence MBCP to
promote decarbonization, economic development and resiliency across the region working with neighboring cities,
communities and environmental groups and encouraging San Luis Obispo County and Atascadero to join MBCP.
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Decarbonizing Buildings
This action team also had a banner year. The primary and almost-all-encompassing goal this year was supporting
the development and incorporation of the City of San Luis Obispo’s Reach Code encouraging all-electric new
construction.
The Climate Solutions event “Decarbonizing Our Future with Better Buildings” was an all-day event in support of the
City of San Luis Obispo’s Reach Code and revolving around three major aspects:
1.An education session for building professionals hosted by the Tri-County Regional Energy Network in
partnership with the SLO Climate Coalition. This session discussed the significant upcoming changes in
California’s energy code – with a focus on electrification
2.A community panel discussion on electrification with four nationally recognized leaders in building
decarbonization
3.A building expo at the SLO Downtown Farmers Market on Morro St featuring cutting edge appliances,
technologies, and materials presented by vendors themselves.
This event was a massive success in every aspect with hundreds of people across our region and city in
attendance. The effects of the three-part event are still being felt throughout SLO County, as many of the
conversations, which began between participants and attendees from that evening, have permeated into physical
results. Many of the builders who attended are now in regular contact with the manufacturers who presented their
products as they move their home-builds towards better efficiencies and zero-carbon. Despite the city reach codes
being held up in gas company complaints, the two largest developments in town have voluntarily chosen to go
all-electric, proving not just the environmentally-positive aspects of removing fossil-fuels from construction, but
also, just as importantly, proving the financial benefits of removing fossil-fuels from design and construction.
In 2020, this team will continue helping the City of SLO with its implementation of the new Reach Code as well as
the State’s new Building Codes. The team will also turn its attention towards:
1.Educating and training building professionals about the concept and impact of embodied carbon in
construction and various electrification and resiliency technologies and strategies
2.Advocating, in coordination with the CCE Acton Team, for regional and local government policies and
programs that address barriers to building decarbonization, prioritize beneficial electrification, and provide
resources that help residents benefit from electrification and resiliency technologies and strategies.
3.Building strategic coalitions and partnerships that help generate awareness and demand among residents,
homeowners, and consumers about the energy and non-energy benefits of electrification including various
technologies, appliances, and equipment.
Item 8
Decarbonizing Transportation
This action team has focused this year on electric vehicles (EV) and EV infrastructure. This team of experts utilized
major events in order to promote the benefits of EVs including The Green Car Show at Earth Day and the National
Drive Electric Week events comprised of a Ride & Drive event at Madonna Inn and the Electric Vehicle Showcase at
Farmers Market. One of the dealers, Jonathan Crabtree of Alfano Motors, who participated in National Drive Electric
Week said that the event resulted in his best month of sales for 2019. He sold 8 Chevrolet Bolts as a direct result of
contacts made at the event. One team member organized the showing of a new documentary charting the history of
bicycles, “Motherload,” at the Palm Theater.
Primary action team activities included promoting EV adoption through events and an EV focused mailing list,
advocating for increased EV charger installations in public and workplace settings, assisting with EV charger repairs
in the Target and Home Depot parking lots, promoting carbon-free transportation policies and programs with SLO
City Council and city staff, providing information for transportation blogs, and promoting cycling, mass transit and
other forms of clean transportation.
Goals for next year include building upon the same events as last year and joining with Bike SLO County and other
cycling organizations to organize a cycling event during May: Bike Month.
Other goals include
●Assisting staff with the Bike Share Program (prepare RFP, help put together review committee, assist with
rollout and implementation, etc.)
●Developing an EV charger maintenance and repair team
●Encouraging businesses to install their own workplace charging infrastructure with state incentives
●Starting up an Electric Auto Association chapter
●Promoting an accelerated adoption of "neighborhood greenways" in SLO
●Assisting MBCP with transportation related program planning and implementation
●Working with C5 to promote incentive programs
●Setting up a dedicated transportation website
●Collaborating with C5 and MBCP to secure funding and implement a California Electric Vehicle
Infrastructure Project (CALeVIP) program for SLO, Santa Barbara and Ventura Counties.
Item 8
ZERO Waste
This action team centered their efforts around what it would take to achieve the maximum impact regarding waste,
including equity, resilience, inspiration, and political will. To that end, they partnered with HomeShare SLO and
Ecologistics to support the first annual Tiny Footprint Festival, including pre-event promotion, organization, and
volunteer recruitment. At the 2-day festival that attracted over 6,000 attendees, they facilitated hourly sustainability
classes and panel discussions on a variety of sustainability topics including zero waste. Many of the speakers and
panelists were coalition members. They also actively supported the passage of the county-wide styrofoam ban by
writing letters to the Integrated Waste Management Agency (IWMA) and attending and speaking at IWMA Board
meetings.
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Carbon Sequestration/Natural Solutions
This action team assisted in the transfer of the California ReLeaf 2019 Social Equity Forest Improvement Grant to
ECOSLO and in procuring volunteers to find locations and volunteers to plant the 120 trees by April 2020. By the
end of 2019, 64 trees had been planted.
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Outreach and Communications
This action team has assisted all teams with events, communications and planning. They wrote and distributed
press releases to local and national media, sent numerous newsletters to a large and growing email list, designed
posters and flyers for events, did photography and videography to enhance our events, and gave presentations
about our work to several groups of people.
Outreach members have hosted booths at many events and created materials for businesses, developers,
community leaders, and the general public to broaden the coalition and promote SLO City goals. Our email list of
dedicated volunteers and climate concerned citizens has swelled this year along with attendance to our meetings.
Our team is active on social media to engage with the community on Facebook, NextDoor, Twitter and Instagram on
the issues this coalition cares about and to smooth the transition to MBCP and the Clean Energy Choice program.
A sub group of outreach has begun a program to educate children in schools and the community with a block level
neighborhood education program.
The brand recognition we have now built carries with it a strong reputation for our advocacy in the community and
has opened doors when we need to bring in volunteers or discuss issues with business, governmental or nonprofit
leaders.
Organization Development
This action team supported other teams in a variety of ways so they could efficiently focus on their goals and build
off of each other’s work. They also kept up the internal metrics. Since so many new faces appeared at the monthly
meetings, a new feature created and orchestrated by the team was holding orientation sessions during each
coalition meetings for individuals new to the coalition.
As the SLO Climate Coalition looks forward to its work in 2020, its focus will be on IMPACT and ACCESS. The
structure of the organization is transiting into a program/campaign format instead of an action team approach and a
Leadership Team will guide all actions based on the stated vision, mission, core values, and principles listed above.
The three goals of this structure will be 1) shape policy and programs, 2) grow political leadership and community
support, and 3) support individual and group action. Because of the rapid growth of this coalition, one emphasis this
year will be in developing support services for the initiatives that will be undertaken.
The coalition will continue building on the foundation begun in 2018 and 2019 and widen the established climate
coalition that includes business, labor, social, faith, and environmental organizations consistent with tenants of the
Green New Deal and the goal of SLO City to be carbon free by 2035. As one team member wrote in his team’s
year-end report and applies to every member of this coalition, “this team works their butts off, day-in, day-out, and
we love it. We’re focused, determined, smart, and resourceful.” We appreciate the continued support from the city
and elected officials as we attempt to do all that we can in the name of a better future for our younger generations.
Item 8
Item 8
Department Name: Parks & Recreation
Cost Center: 7001
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Greg Avakian, Parks and Recreation Director
Prepared By: Lindsey Stephenson, Recreation Manager
Meghan Burger, Recreation Supervisor
SUBJECT: APPROVE A MEMORANDUM OF UNDERSTANDING WITH SAN LUIS
COASTAL UNIFIED SCHOOL DISTRICT TO ACCEPT REIMBURSEMENT
FOR CHILDCARE DURING DISTANCE LEARNING
RECOMMENDATION
Approve the proposed Memorandum of Understanding (MOU) with San Luis Obispo Coastal
Unified School District (SLCUSD) and authorize the City Manager to execute the MOU
implementing action taken at the City Council meeting on August 18, 2020 to accept SLCUSD
funding of up to $100 per student per week for the fall 2020 program (16-week on-site
childcare).
DISCUSSION
Background
At the August 18, 2020 City Council meeting, Council adopted Resolution No. 11158 (2020
Series) to update the Master Fee schedule, amending the hourly rate for the full day child care
option as a result of SLCUSD’s COVID-19 Distance Learning program extending through the
end of December 2020.
The purpose of this MOU is to facilitate childcare services by the City for community members
located in the District’s attendance area and will terminate with the conclusion of State Mandated
Distanced Learning due to the COVID-19 emergency.
Childcare services are currently provided at Bishop’s Peak, CL Smith, and Sinsheimer
Elementary schools, serving cohorts of 14 children in each room, per Public Health regu lations.
SLCUSD recognizes the benefits of the services provided to the community and desires to assist
the City in providing care at a reduced cost.
The City and SLCUSD will continue to communicate regarding needs, pivot as regulations
change (State Licensing, Public Health and CDC), and adjust programming, as necessary.
City staff has continued to provide City Council with updates on childcare recommendations and
progress during the pandemic, seeking approval for summer childcare programming (Summer
Fun Day Camp and full-time Distanced Learning childcare (The SPARK Program)).
Item 9
Staff is requesting Council approve the proposed MOU (Attachment A) as provided by the
District and authorize the City Manager to execute the MOU. The School District has entered
into a similar MOU with YMCA of San Luis Obispo County and City of Morro Bay. The MOU
does not supercede other agreements with SLCUSD for shared facilities.
Previous Council or Advisory Body Action
Resolution No. 11158 (2020 Series) (Attachment B) was adopted on August 18, 2020 to modify
the hourly childcare rate and accept funds from SLCUSD partners to reduce the costs to families.
CONCURRENCE
The City Attorney’s office concurs with the recommendation and has reviewed, edited, and
approved the proposed MOU.
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/No (reference Financial Plan page# in narrative) Budget Year:
Funding Identified: Yes/No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $
State
Federal
Fees
Other:
Total $
Additional City funds are not being requested. The MOU reflects monies being received from
the District. City staff will bill SLCUSD for children who attend each session at $100/child per
week. Sessions range from 3 to 4 weeks in length.
Per Resolution No. 11158 (2020 Series), the new rate for childcare during a State of Health
Emergency is $200 per week for full-time care. With this MOU, families will only be paying
$100 per week and the SLCUSD will be paying the remaining $100. This MOU helps decrease
the added financial cost on families for having to pay for 45 hours of care per week opposed to
15 per week (on average families were paying for 15 hours of before and after school care during
a typical school year).
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The cost to run the program at the required levels was included in the FY21 budget that the
Council approved on June 2, 2020.
ALTERNATIVES
1. The City Council could request amendments to the MOU. Should Council request
amendments, they would be provided to SLCUSD for consideration and brought back to
Council at a future date.
2. Council could elect to not participate in the MOU. That action would be inconsistent with
the Resolution No. 11158 (2020 Series) approved at the August 18, 2020 Council meeting
and is not recommended.
Attachments:
a - SLCUSD MOU Final September, 2020
b - Resolution No. 11158 adopting new fees and amending the 2020-21 Master Fee Schedule
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MEMORANDUM OF UNDERSTANDING
CHILD CARE PROVIDER
(San Luis Coastal Unified School District)
THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is executed on ________________
(“Execution Date”) by and between the SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT
(“District”) and CITY OF SAN LUIS OBISPO (“Provider”). District and Provider are referred to
individually as a “Party” and collectively as the “Parties.”
RECITALS
A. WHEREAS, on March 4, 2020, Governor of California proclaimed a State of Emergency as a
result of the novel coronavirus (“COVID-19”) outbreak.
B. WHEREAS, on July 17, 2020, the Governor ordered schools in designated counties, including the
County of San Luis Obispo, to commence school with distance instruction only in order to
minimize the further spread of COVID-19, leaving many parents in the community without child
care.
C. WHEREAS, District owns the real property and facilities located at Bishops Peak Elementary
School, CL Smith Elementary School and Sinsheimer Elementary School that are not currently
being used for in person instruction as a result of the Governor’s order.
D. WHEREAS, Provider desires to operate a child care centers at these schools including outdoor
play areas, outdoor eating areas, assigned communal and adult restrooms, and rooms leased to the
City (collectively referred to as the “Premises”) to provide child care services for community
members located in the District’s attendance area (“Services”) during the COVID-19 emergency.
E. WHEREAS, District recognizes the benefits the Services will provide to the community, including
District’s students and their families during this time, and desires to assist Provider in facilitating
the Services as set forth herein.
F. WHEREAS, District is authorized to contract with Provider to carry on any program or activity,
or may otherwise act in any manner not in conflict with or inconsistent with, or preempted by, any
law and is not in conflict with the purposes for which school districts are established.
NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements set forth
herein, the Parties agree as follows:
AGREEMENT
1. Incorporation of Recitals. The Recitals above are true and correct and are incorporated as though
fully set forth herein.
2. Purpose. The purpose of this MOU is to facilitate the Services by Provider in order to provide
childcare services for community members located in the District’s attendance area. Provider
represents and warrants that it is properly skilled and licensed to provide the Services. Provider
further represents that it has consulted with local health officials and agrees to comply with all
applicable public health guidelines regarding COVID-19 in providing the Services. District agrees
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to grant to Provider a license to occupy and use the Premises in order to provide the Services, as
provided herein.
3. Parent/Guardian Waiver. As soon as reasonably practicable after the Execution Date, Prior to
providing the Services, Provider shall require that the parent or guardian of each child sign a waiver
releasing the District from liability containing at least the provisions of the form attached hereto as
Exhibit A. District acknowledges that Provider also requires the parent or guardian of each child
to sign an assumption of the risk and waiver releasing the Provider from liability for any and all
injuries related to the child’s participation in the Services program. Provider shall deliver signed
copies of the District’s waiver for each student who participates in the Services to the District for
file retention purposes.
4. Health Guidelines. In providing the Services set forth in this MOU, Provider agrees to follow all
local, state, and federal public health guidelines regarding human protection from COVID-19,
including, but not limited to, social distancing, face coverings, contact tracing, and health screening
(the “Guidelines”) unless an exception to the face covering or any other applicable guideline applies
to a child receiving the Services. The Guidelines to follow are located at various sites, including,
but not limited to:
a. https://covid19.ca.gov/
b. https://www.cdc.gov/coronavirus/2019-ncov/index.html
c. https://www.emergencyslo.org/en/covid19.aspx
d. https://www.cdss.ca.gov/inforesources/community-care-licensing
To the extent the Guidelines contradict one another, or require additional or different protocols from
one another, the Provider shall adhere to the San Luis Obispo County Public Health Department’s
guidelines in rendering the Services.
5. Cost of Services. District agrees to provide Provider with an amount up to $100 per student per
week for eligible students (students who are enrolled in district schools). The District will pay
Provider on a monthly basis upon receipt of documentation demonstrating student eligibility.
Provider shall be responsible for all other costs associated with operating the Services, including
but not limited to the salary of the child care providers.
6. Term. This MOU shall commence on the Execution Date, and shall continue through the
conclusion of state mandated remote learning due to the COVID-19 emergency, unless earlier
terminated by either party.
7. Termination. This MOU may be immediately terminated by either Party without cause upon seven
(7) days’ notice to the other Party. Additionally, this MOU shall terminate immediately if required
to comply with direction from state or local health officials.
8. Grant of License. The District, as licensor, hereby grants to Provider, as licensee, a non-exclusive
license (the “License”) for the mutual benefit of the community and children and families served
by both the District and Provider. Pursuant to the License, Provider shall have the non-exclusive
right to use the Premises, subject to the terms and conditions herein, for the purpose of providing
the Services. The License is granted in exchange for the covenants expressed in this MOU,
including Provider’s covenant to provide the Services for the benefit of the community and
District’s students, Provider’s promise to indemnify District, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged. Nothing herein shall
limit or otherwise restrict District’s ability use the remainder of the School.
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9. Use of Premises. Provider shall use the Premises for the purpose of providing the Services.
Provider shall not use the Premises for any other purpose, except as provided herein, without the
express written consent of the District. Provider shall comply with all applicable federal, state, and
local laws and regulations with respect to Provider’s use of the Premises, as those laws and
regulations may change from time to time. Provider shall conduct its activities without causing
waste, vandalism, or a nuisance at the Premises. Provider shall be responsible for maintaining the
Premises in a clean and sanitary manner, including by sanitizing the Premises as recommended by
applicable public health guidance and/or directives related to COVID-19. District will provide
Provider with the appropriate keys and Provider shall be responsible to ensure that the Premises
are properly secured, maintained, and kept in good repair.
10. Licensed “As-Is.” The Premises are licensed to Provider, and Provider accepts the Premises, in
its existing “As-Is” condition on the date of this License. Provider also accepts the Premises subject
to all existing easements, licenses, and any other recorded or unrecorded en cumbrances. Provider
shall be responsible to provide any routine maintenance or repairs to the Premises as necessary to
provide the Services.
11. Utilities. District shall provide the following utilities at no cost to Provider: routine janitorial
services, electricity, water, sewer, and trash.
12. Alterations. Provider shall be solely responsible for making any improvements required to comply
with the Guidelines. Such improvements shall be subject to approval by the District. No other
alterations or improvements shall be made to the Premises by Provider without the advance and
express written consent of District, and upon such terms and conditions as District may require.
13. Premises Inspection. During normal business hours, District may enter and inspect the Premises
for compliance under the MOU. Such entry shall not unreasonably interfere with the activities being
conducted by Provider. District shall have keys to unlock all doors in the Premises and the right to
enter by any means necessary in an emergency.
14. Assumption of Risk. Provider recognizes that there is presently a significant element of risk of
COVID-19 transmission when any group of people gathers. Provider has reviewed and understands
the risks reflected in the local, state, and federal alerts and guidelines, including, but not limited to,
the links above. Provider assumes all risks, known and unknown, arising from use and occupancy
of the Premises, including risks from exposure to COVID-19. Provider assumes full responsibility
for any sickness, hospitalization, bodily injury, death, loss of personal property, quarantines, and
all related costs and expenses of any person arising from use and occupancy of the Premises unless
caused by the sole gross negligence, recklessness, intentional torts, or illegal acts by the District
and its agents, officers, contractors, or employees. District acknowledges that Provider requires
the parent or guardian of each child to sign an assumption of t he risk and waiver form assuming
full responsibility and risk for any injury, including transmission of COVID-19, related to the
child’s participation in the Services.
15. Waiver and Release of Claims. To the fullest extent permitted by law, Provider releases District,
its affiliated campuses, and their governing boards, affiliates, subsidiaries, divisions,
administrators, directors, officers, employees, agents, and volunteers (collectively referred to
herein as the “District”), from and against all claims and causes of action, for any injury or harm
of any kind which may arise from or out of the Provider’s use and occupancy of the District facility,
including the risks from exposure to COVID-19. This release is intended to discharge the District
against any and all liability arising out of or connected in any way with the Provider’s use and
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occupancy of the Premises, even though that liability may occur or arise out of the negligence or
carelessness on the part of the District. However, this release is not intended to discharge the
District against liability arising out of or connected in any way to the Provider’s use and occupancy
of the Premises if the liability occurs or arises out of the sole gross negligence, recklessness,
intentional torts, or illegal acts by the District and its agents, officers, contractors, or employees.
No representations, statements, or inducements, oral or written, apart from the foregoing written
statement, have been made.
16. Indemnification. Provider agrees to indemnify, defend, and hold harmless District and its
governing board, members of its governing board, agents, officers, and employees from and against
any and all claims, demands, lawsuits or other proceedings, bodily injury, property damages,
personal injury, and other liabilities and damages, including attorneys’ fees and costs, arising out
of Provider’s alleged or actual omission, act or negligence, in the performance or failure to perform
its obligations under this MOU. The indemnity, defense, and hold harmless obligations set forth
herein shall survive the termination of this MOU for any alleged or actual omission, act or
negligence, in the performance or failure to perform its obligations under this MOU that occurred
during the term of this MOU. The scope of Provider’s duty to indemnify also includes losses
arising from or otherwise related to exposure to the COVID-19.
17. Protecting the Confidentiality of Student Information and Safety of Students. For purposes
of this Section, “Confidential Student Information” shall mean and include any Pupil Records, as
defined by Education Code section 49073.1, personally identifiable information and materials
related to any student, and any other information protected by law, including without limitation the
California Education Code, the Protection of Pupil Rights Amendment (PPRA), Children’s Online
Privacy Protection Act (COPPA), the Family Educational Rights and Privacy Act (FERPA), and
the Student Online Personal Information Protection Act (SOPIPA). Provider shall maintain the
confidentiality of any Confidential Student Information and shall:
a. Not use or further disclose Confidential Student Information except as permitted by this
MOU and applicable law;
b. Use appropriate safeguards to prevent the use or disclosure of Confidential Student
Information;
c. Report to the District any use or disclosure of Confidential Student Information of which
Provider becomes aware that would violate the terms of this MOU; and
d. Ensure that Provider personnel, and any other agents, officers, or employees to whom it
delegates any function, service, or activity performed under this MOU, and to whom it
discloses Confidential Student Information received from, or created or received by
Provider, agree to the restrictions and conditions provided in this Section with respect to
any Confidential Student Information.
e. Provider shall at all times comply with the fingerprinting and criminal background
investigation requirements of the California Education Code section 45125.1 and the
tuberculosis certification requirements of Education Code section 49406.
18. Insurance. Provider shall secure and maintain in force during the term of this MOU liability
insurance including but not limited to (i) comprehensive general liability insurance with limits of
not less than $1,000,000; (ii) commercial automobile liability insurance with limits not less than
$1,000,000; and (iii) worker’s compensation insurance as required by Labor Code section 3200, et
seq. All insurance maintained pursuant to this Section shall provide coverage for organic pathogens
and viruses, including but not limited to claims related to COVID-19. Neither the existence of any
of the insurance coverage required under this MOU nor the minimum coverage limits specified
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herein with respect to any such coverage shall be deemed to limit or restrict in any way Provider’s
liability arising under this MOU.
19. Notice. Whenever under this MOU one Party is required or permitted to give notice to the other,
such notice will be in writing and deemed given upon the earlier of personal delivery, receipt of
email, or five (5) calendar days after such notice is mailed by registered or certified United States
mail, return receipt requested, postage prepaid to the individual at the address identified with the
signatures below.
20. Effect of Termination. Upon termination of the MOU, Provider shall return the Premises to its
original condition, normal wear and tear excepted. Provider shall clean and sanitize the Premises
in accordance with recommended public health directives and/or guidance prior to returning the
Premises to District. All authorized improvements to the Premises shall remain the sole property
of the District. Termination or expiration of this MOU shall not release Provider from any liability
or obligation hereunder, whether of indemnity or otherwise, resulting from any acts, omissions, or
events happening prior to such termination or expiration, or thereafter in case by the terms of this
MOU it is provided that anything shall or may be done after termination or expiration thereof.
21. Integration/Entire Agreement of Parties. This MOU constitutes the entire agreement between
the Parties and supersedes all prior discussions, negotiations, and agreements, whether oral or
written. This MOU may be amended or modified only by a written instrument executed by both
Parties.
22. Severability. If any provision of this MOU is determined by a court or tribunal of competent
jurisdiction to be void, voidable, or unenforceable as a matter of law, then such provision shall be
deemed deleted and all other remaining provisions of this MOU shall otherwise remain in full force
and effect.
23. Waiver. No waiver by either Party of any provision of this MOU shall constitute or be deemed a
waiver of any other provision hereof or of any subsequent breach of the same or any provision
hereof.
24. Interpretation. This MOU shall be construed as a whole, according to its fair meaning, and not
strictly for or against either Party hereto. The captions to the sections in this MOU are included for
convenience only, and are not intended and shall not be deemed to modify or explain any of the
terms contained herein.
25. Relationship of the Parties. The Parties agree that their agents and employees in the performance
of this MOU are not, for any purpose, officers or employees or agents of the other Party.
26. Signature Authority. Each Party has the full power and authority to enter into and perform this
MOU, and the person signing this MOU on behalf of each Party has been properly authorized and
empowered to enter into this MOU.
27. Counterparts. This MOU and all amendments and supplements to it may be executed in
counterparts, and all counterparts together shall be construed as one document. Signatures
transmitted by facsimile and/or electronic signatures shall be deemed original signatures.
28. Governing Law and Venue. This MOU shall be construed and interpreted in accordance with the
laws of the State of California. Venue shall be in the Superior Court of California, County of San
Luis Obispo, or the U.S. District Court, as appropriate.
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IN WITNESS WHEREOF, the Parties hereto have executed this MOU on the date indicated
below.
SAN LUIS COASTAL UNIFIED SCHOOL
DISTRICT
By: ___________________________________
Name: Ryan Pinkerton
Title: Asst. Superintendent of Business Services
Address: 1500 Lizzie Street
San Luis Obispo, CA 93401
Telephone: (805) 549-1331
Email: rpinkerton@slcusd.org
CITY OF SAN LUIS OBISPO
By: ________________________________
Name: Derek Johnson
Title: City Manager
Address: 990 Palm Street
San Luis Obispo, CA 93401
Telephone: (805) 781-7100
Email: djohnson@slocity.org
Item 9
EXHIBIT A
TEMPLATE PARENT WAIVER FORM
Child Name: ____________________________ Date of Birth:____________
Parent/Guardian Name:___________________ Phone Number:_______________________
Emergency Contact:______________________ Phone Number:______________________
Parent/Guardian acknowledges and agrees as follows:
1. Supervised child care services (the “Services”) are offered on a first come, first served basis. If the number
of children participating reaches the permitted capacity, no additional children will be authorized to utilize
these Services.
2. These Services are provided by the City of San Luis Obispo. Although the Services are offered on property
owned by San Luis Coastal Unified School District (“District”), Parent/Guardian acknowledges that the
District is not involved or otherwise responsible for providing the services.
3. Parent/Guardian will, on a daily basis, conduct a wellness check of his/her child and ensure that the child
does not have a temperature and is free of all symptoms of COVID-19, as set forth in Guidance issued by the
California Department of Public Health (“CDPH”). If the child exhibits symptoms of COVID-19 or has a
temperature of 100.4 degrees or higher, the child shall not return within the time recommended by the San
Luis Obispo County Public Health Department.
4. While on District property, Parent/Guardian’s child shall follow all applicable social/physical distancing
protocols, shall wear a face covering in compliance with the CDPH’s July 17, 2020 “Guidance For the Use
of Face Coverings” (and all applicable updates to this CDPH guidance), and must abide by all other COVID-
19 health and safety protocols in place at the worksite.
5. Parent/Guardian releases District from all responsibility and liability related to Parent/Guardian’s child and
agrees to indemnify, defend and hold the District harmless from any claim s, causes of actions, actions,
liabilities, and costs that may arise out of or result from the child care. Parent/Guardian assumes all
obligations for any medical, financial and other costs/liabilities that are sustained by the child related to
utilizing these services.
6. Parent/Guardian has been advised of certain inherent risks that cannot be eliminated regardless of the care
taken to avoid injuries or illness to their child during this public health crisis and Parent/Guardian assumes
the risk of such injury or illness.
7. The provision of Services may be terminated with limited prior notice.
8. Parent/Guardian agrees that this waiver, indemnity, and assumption of risks agreement is intended to be as
broad and inclusive as permitted by the law of the State of California and that if any portion is held invalid,
it is agreed that the remainder of this agreement shall continue in full legal force and effect.
Parent/Guardian’s signature below indicates that Parent/Guardian has read, understands, and agrees to abide by these
conditions at all times. Parent/Guardian understands that they are giving up substantial rights, including their right to
sue. Parent/Guardian acknowledges that they are signing the agreement freely and voluntarily, and intend by the
below signature to be a complete and unconditional release of all liability to the greatest extent allowed by law.
Signature: Date:
Item 9
R 11158
RESOLUTION NO. 11158 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING NEW FEES AND AMENDING THE
2020-21 MASTER FEE SCHEDULE
WHEREAS, Section 2 of the City’s 2019-21 Financial Plan, titled “User Fee Cost
Recovery Goals” defines the level of cost of services for the various City services; and
WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan provides that cost recovery
for Recreation Programs directed to youth and seniors should be relatively low. In those
circumstances where services are similar to those provided in the private sector, cost recovery
levels should be higher; and
WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan set cost recovery goals for
child care services at High-Range Cost Recovery (60%-100%); and
WHEREAS, on June 2, 2020, the City Council approved the City’s Master Fee Schedule
listing all applicable service fee levels for fiscal year 2020-21; and
WHEREAS, San Luis Coastal Unified School District (SLCUSD) announced on July 16,
2020 that Fall 2020 schooling would commence via distance learning due to COVID-19; and
WHEREAS, over 300 working families have requested childcare during the months of
August – December 2020; and
WHEREAS, the City will provide modified childcare programming to kids from 8:00 a.m.
5:00 p.m., an expansion of before and after care; and
WHEREAS, the City has not previously provided a full day childcare program during the
school year and as such a full-time care rate did not exist; and
WHEREAS, the standard school year hourly rate is based off of the program premise of
before and after school care, and families are used to paying for 14 hours of care opposed to 45
hours of care per week; and
WHEREAS, the ability to provide childcare during the SLCUSD distance learning period
supports the economic recovery of the City, supporting the benefit to providing care at a lower
hourly rate while maintaining the cost recovery policy goals approved by Council in the City’s
current Financial Plan; and
WHEREAS, the Master Fee Schedule will be updated to reflect all new fees becoming
effective July 1, 2020.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Item 9
Resolution No. 11158 (2020 Series) Page 2
R 11158
SECTION 1. The Parks and Recreation Department will begin charging fees for
Childcare during a State of Health Emergency as set forth in Exhibit A to this Resolution. These
fees will be adjusted annually between any Cost of Services study with the Consumer Price Index
Los Angeles/Riverside.
Upon motion of Council Member Christianson, seconded by Council Member Stewart, and
on the following roll call vote:
AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 18th day of August 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, on _____________________.
Teresa Purrington
City Clerk
Item 9
Resolution No. 11158 (2020 Series) Page 3
R 11158
Exhibit A
New Fees
Parks and Recreation Fees
Fee Description FY 2020-21 Rate
Youth Services
State of Health Emergency
Childcare Fee
Hourly $4.44
Weekly $200
2-Day Option (Tuesday, Thursday) $80/week
3-Day Option (Monday, Wednesday,
Friday) $120/week
Half Day Option (Mon-Friday 8am -12
pm or 1pm – 5pm) $100/week
Item 9
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Item 9
Department Name: Community Development
Cost Center: 4003
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Brandi Cummings, Contract Planner
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1690 (2020
SERIES) AMENDING ZONING, AND SPECIFIC PLAN DESIGNATIONS OF
660 TANK FARM ROAD FROM BUSINESS PARK (BP-SP) TO
COMMUNITY-COMMERCIAL WITH THE SPECIFIC PLAN AND SPECIAL
FOCUS OVERLAY (C-C-SP-SF), AND CHANGING THE SPECIFIC PLAN
DESIGNATION FOR THE PROPERTY AT 3985 BROAD STREET TO
COMMUNITY-COMMERCIAL WITH SPECIFIC PLAN AND SPECIAL
FOCUS OVERLAY TO BE CONSISTENT WITH THE EXISTING GENERAL
PLAN AND ZONING DESIGNATIONS (C-C-SP-SF)
RECOMMENDATION
Adopt Ordinance No. 1690 (2020 Series) rezoning and amending the Specific Plan Designation
for the property at 660 Tank Farm Road and amending the Airport Area Specific Plan
Designation for the property located at 3985 Broad Street.
DISCUSSION
On September 15, 2020, the City
Council voted 4:0:1 (one Council
Member recused) to adopt a
Resolution and to introduce an
Ordinance to rezone and amend the
Airport Area Specific plan to approve
a subdivision and development plan
for an assisted living facility project
known as the Northwest Corner project
(NWC). This action is a follow up 2nd
reading to adopt Ordinance No. 1690
(Attachment A) which rezones and
amends Specific Plan designations, as
delineated in Figure 1.
Figure 1. Rezoning and Specific Plan Amendment Exhibit
Item 10
Policy Context
As discussed in the Council Agenda Report dated September 15, 2020, The project is consistent
with several community goals, policies and programs for the development that relate to the
project site including Special Focus Area policies, Neighborhood Connections, Mixed-use
Developments and Convenience, and Neighborhood Compatibility.
Public Engagement
Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s
Municipal Code, the project was noticed per the City’s notification requirements for
Development Projects for each public hearing associated with the project. Newspaper legal
advertisements were posted in the New Times ten days prior to the hearing. Additionally,
postcards were sent to both tenants and owners of properties located within 300 feet of the
project site ten days before the hearing. Public comment on the project and the associated
environmental document was provided to the advisory bodies through written correspondence
and through public testimony at the hearing.
CONCURRENCE
The project has been reviewed by various City Departments and divisions including: Planning,
Engineering, Transportation, Building, Utilities, and Fire. Comments have been incorporated
into the presented evaluation and conditions of approval.
CONSISTENCY COVID-19 ORDERS AND CURRENT FISCAL CONTING ENCY PLAN
This activity is presently allowed under the State and Local emergency orders associated with
COVID-19. This Project and associated staff work will be reimbursed by the Developer directly
or indirectly through fees and therefore consistent with the guidance of the City’s Fiscal Health
Contingency Plan.
ENVIRONMENTAL REVIEW
On September 15, 2020, the City Council adopted Resolution No. 11166 (2020 Series) adopting
the Final IS/MND for the development project General Plan Amendment, and rezone an d
Specific Plan amendment, and adopted CEQA findings including a mitigation and monitoring
plan. A Notice of Determination was filed with the San Luis Obispo Clerk Recorder’s Office on
September 18, 2020.
Item 10
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total N/A
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall, the General Plan was fiscally balanced. Accordingly, since the proposed
project is consistent with the General Plan, it has a neutral fiscal impact.
ALTERNATIVE
1. Modify the proposed ordinance. The City Council may make minor, non-substantive
changes to the proposed Ordinance for the staff to incorporate in the final documents. Any
material changed to the Final Ordinance would require further review by staff and the
Planning Commission followed by re-introduction of the Ordinance by the Council.
Attachments:
a - Ordinance No. 1690 (2020 Series)
b - COUNCIL READING FILE - Exhibit A for Ordinance No. 1690 (2020 Series)
Item 10
O 1690
ORDINANCE NO. 1690 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REZONING AND AMENDING THE SPECIFIC
PLAN DESIGNATION FOR THE PROPERTY AT 660 TANK FARM
ROAD FROM BUSINESS PARK WITH SPECIFIC PLAN OVERLAY (BP-
SP) TO COMMUNITY COMMERCIAL WITH SPECIFIC PLAN AND
SPECIAL FOCUS OVERLAY (CC-SP-SF) AND AMENDING THE
AIRPORT AREA SPECIFIC PLAN DESIGNATION FOR 3985 BROAD
STREET TO COMMUNITY COMMERCIAL WITH SPECIAL FOCUS
AREA (C-C-SP-SF) AND MAKING ASSOCIATED AMENDMENTS TO
THE AIRPORT AREA SPECIFIC PLAN TO BE CONSISTENT WITH THE
PROPOSED NORTHWEST CORNER ASSISTED LIVING PROJECT,
AND WITH THE GENERAL PLAN AS AMENDED
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California,
on April 10, 2019, and recommended amendments to the Airport Area Specific Plan (AASP)
including a revision to the City’s Zoning Map and associated text amendments (Exhibits A and B,
attached) consistent with the Northwest Corner Project as part of the entitlement process for the
project (SPEC 1482-2018, SBDV-1483-2018, and ARCH 1486-2018); and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on September 15, 2020 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of considering the Project and associated entitlements and voted to
adopt a resolution approving the project and to introduce an ordinance for the associated rezone
and Specific Plan Amendments; and
WHEREA S, the City Council finds that the proposed amendments are consistent with
the project’s associated General Plan designations as amended (related to the Northwest Corner
project), the purposes of the Zoning Regulations, and other applicable City ordinances; and
WHEREAS, the City Council adopted an Initial Study/Mitigated Negative Declaration
for the project (SCH #2019049030) that addressed impacts related to the AASP amendments
including the rezone at its public hearing of September 15, 2020; 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 testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing.
NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of San
Luis Obispo as follows:
Item 10
Ordinance No. 1690 (2020 Series) Page 2
O 1690
SECTION 1. Environmental Determination. The City Council hereby finds that this action has
been environmentally reviewed pursuant to the provisions of the California Environmental Quality Act
(Public Resources Code Sections 21000, et seq. (“CEQA”), the State CEQA Guidelines (California
Code of Regulations, Title 14, Sections 15000, et seq.) and the City's local standards. The City prepared
an Initial Study/Mitigated Negative Declaration and, based on information contained in the initial study,
concluded that there was not substantial evidence, in light of the whole record, that the project as mitigated
would have a significant impact on the environment. The City adopted the Initial Study-Mitigated
Negative Declaration on September 15, 2020, pursuant to Resolution No. 11166 (2020 Series), made
certain CEQA findings, and adopted a Mitigation and Monitoring Program. A Notice of Determination
was filed with the San Luis Obispo County Clerk Recorder’s Office on September 18, 2020.
SECTION 2. Findings. Based upon all evidence, the City Council makes the following
findings:
1. The proposed amendments to the General Plan, including the rezone, and Airport Area
Specific Plan land use amendments as shown in Exhibit A bring the parcels included in the
project into consistency with existing zoning of the subject parcel which was rezoned to
Community-Commercial with Special Focus Overlay (C-C-SF) when the 2014 Land Use
and Circulation Element update was adopted.
2. The proposed project is consistent with policy objectives of the Broad Street and Tank
Farm Road Special Focus area since it would allow for a mix of uses with a strong
commercial presence at the intersection.
3. The AASP as amended is consistent with policy direction for the area included in the
General Plan and in particular the following General Plan policies:
a. LUE Policies 2.2.4 and 2.2.5 provide for neighborhood connections in new projects,
both internally and externally so as to integrate new projects into the neighborhoods in
which they are proposed, as well as take advantage of opportunities for locating new
development close to major employers, retailing and multi -modal transportation
facilities;
b. LUE Policies 2.3.1, 2.3.6 and 2.3.9, which promote quality neighborhoods and infill
development, because the project is located within walking distance to MindBody
Headquarters, SESLOC, other nearby employers as well as retail uses and other retail
and personal services;
c. LUE Policy 3.4.1 encourages mixed-use projects in Community-Commercial districts
to provide support services near retailing and office facilities;
d. LUE Policy 8.13 establishes the “Special Focus” Area #12 at the subject site to
facilitate improvements to bicyclist and pedestrian facilities in the project area, and by
integrating uses within the larger established Tank Farm-Broad Street neighborhood
reduce vehicle trips and provide additional employment and retailing opportunities to
this part of town; and
e. The AASP as amended is also consistent with all other applicable General Plan
policies, as described and analyzed in the September 15, 2020 staff report to the City
Council for this project.
4. On September 19, 2018, The County of San Luis Obispo Airport Land Use Commission
found the proposed project to be consistent with the Airport Land Use Plan under authority
of Section 2.7 of the ALUP.
Item 10
Ordinance No. 1690 (2020 Series) Page 3
O 1690
SECTION 3 . Action. The City Council of San Luis Obispo hereby 1) approves the
rezone and land use map amendment as shown in attached “Exhibit A,” which is consistent with
the land use designations included in the General Plan as amended, and 2) approves amendments
of the text of the Airport Area Specific Plan attached hereto marked “Exhibit B”.
SECTION 4 . Severability. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any
competent jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each
and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional
without regard to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 5. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the 15th day of September 2020, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on ____ day of __________, 2020, on the following
vote:
AYES:
NOES:
ABSENT:
______________________________
Mayor Heidi Harmon
ATTEST:
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on _________________.
Teresa Purrington, City Clerk
Item 10
Department Name: Community Development
Cost Center: 4003
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Steve LaChaine, Senior Civil Engineer
SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3150, SAN LUIS RANCH,
1035 MADONNA ROAD (FMAP-0309-2020)
RECOMMENDATION
Adopt a Resolution (Attachment A) approving the Final Map for Tract 3150, San Luis Ranch,
1035 Madonna Road, and authorizing the Mayor to execute the easements, and agreements
associated with Tract 3150.
DISCUSSION
Background
Tract 3150 San Luis Ranch (FMAP-0309-2020) is located at 1035 Madonna Road (Attachment
B). A vesting tentative map for Tract 3150 was approved by the City Council on April 7, 2020,
by Resolution No. 11110 (2020 Series) (Attachment C). The tentative map (Attachment D)
contained a total of 12 lots consisting of 296 condominiums and one open space lot.
Minor Corrections to Approved Tentative Map
City Municipal Code Section 16.10.160 grants the Community Development Director the
authority to approve minor corrections to an approved tentative map or conditions of approval if
all the following are true:
1. No lots, units or building sites are added or deleted; and
2. The proposed changes are consistent with the intent and spirit of the original tentative
map approval; and
3. The proposed changes are consistent with the zoning regulations and the building code,
the General Plan, and the Subdivision Map Act.
Under the authority listed above, the Community Development Director has approved the
following changes to the tentative map:
1. Minor modifications in condominium floor plans.
2. Minor modifications in the blanket private access and utility easements being provided
over these lots (providing for access and utilities to serve the lots). These lots will
continue to share a single access to Madonna Road at the location shown on the approved
tentative map and a pedestrian/emergency vehicle access bridge will be provided as
shown on the tentative map connecting to the single-family portion of Tract 3096.
Item 11
Affordable Housing
Tract 3096 and any phase of the final map (Tract 3150). Tract 3150 is a resubdivision of lots 1
and 2 of tract 3096. The new tract 3150 will have affordable units that are not yet determined as
to what units are affordable until the final affordable housing agreement is established for tract
3050. An Affordable Housing Agreement is required to be recorded prior to or concurrent with
the map pursuant to Condition #115 of Council Resolution No. 10822 (2017 Series). The project
is required to provide 68 Inclusionary Housing units that will all be provided on-site. In addition,
the project includes design and development strategies that serve to provide lower cost housing
by providing for a range of housing sizes and types, greater affordability than required by the
City’s standard inclusionary housing requirements with the provision of 26 very low income
units, local preference (preference to those residing or working in the City), owner occupancy
restrictions (owner occupancy first five years after sale), and deed restricted workforce housing
(14 units provided). These are contractual requirements of the Affordable and Workforce
Housing Plan in the Council-adopted Development Agreement pursuant to Ordinance No. 1649
(2018 Series).
This development project was approved by the Planning Commission with the following
provision: “The Base Inclusionary Housing Requirement may be modified by the Community
Development Director in the event that an application for an Affordable Housing Project on the
NC portion of the San Luis Ranch Specific Plan area is approved providing for the development
of at least the same number (26) very-low income units currently proposed for the multi-family
site, in addition to the 34 very-low income affordable housing units already required on the NC
site through previous project entitlements. (Planning Commission Resolution No. PC-1006-20.
Section 3. Condition #15.B.)” There is currently an application pending for an affordable
housing project on the neighboring site within the SLR Specific Plan area. This project is
scheduled to be reviewed by the City Council on November 17, 2020. If the City Council
approves the proposed affordable housing development within the commercial por tion of the
SLR Specific Plan, then the requirement can be removed from Tract 3150.
Parks
The Subdivider will pay in-lieu fees for the Tract 3150 condominium project. There are no parks
proposed on Tract 3150. Park In-Lieu fees for the units shall be collected with the building
permits per Item 3 of the Notice of Requirements agreement recorded with tract 3096 on 9/14/20.
Note: Parkland Credits were given for Tract 3096 (San Luis Ranch) but not for the resubdivision
of lots 1 and 2 of tract 3096 (tract 3150).
Off-Site Transportation Improvements
Transportation Improvements have been covered by Tract 3096 (San Luis Ranch).
Butterfly and Riparian Habitat
For Reference from Tract 3096: A Habitat Mitigation and Monitoring Plan prepared for Tract
3096 (now Lot 10 of Tract 3150) identifies certain biological areas that need to be preserved,
protected, and/or reestablished with this project. These areas include a riparian corridor within
Prefumo Creek and Cerro San Luis Channel, monarch butterfly habitat, and a heron rookery.
Item 11
Easements for these areas are shown on Lots 1 and 3 on the map and a separate Open Space
Conservation Easement (Attachment G) has been recorded concurrently with the final map for
Tract 3096 to address allowed and restricted uses in this area.
Agricultural Land and Historical Preservation
This new tract 3150 which is a resubdivision of lots 1 and 2 of Tract 3096 has no requirement for
Agricultural Land requirement or Historical Preservation requirement, in that it is for
condominium residential purposes. Agricultural Land and Historical Preservation had been
included in Tract 3096 (San Luis Ranch) recorded 9/14/20. The Open Space lot 10 of new Tract
3150 is a byproduct of tract 3096 as already granted open space easement. Based on location
and tentative maps, the Open Space easement becomes a portion of tract 3150. HOA of new
tract 3150 is not required to maintain lot 10, and lot 10 is not meant to be for agricultural
purposes.
Approving the Final Map
Tract 3150 Tentative map which was approved on April 7, 2020 has a two-year life per
Municipal Code Section 16.10.150, therefore, this vesting tentative map has an expiration date of
April 7, 2022. The final map must be completed prior to expiration of the tentative map.
Additional time extensions are allowed.
The final map for Tract 3150 (Attachment E) is ready to be approved. There are a few minor
revisions still required for technical accuracy and condition compliance, but those changes will
be completed before the map records. Pursuant to Section 16.14.080 of the Municipal Code, the
Public Works Director has determined that the final map is in substantial compliance with the
previously approved tentative map and approved modifications thereof. California Government
Code Section 66474.1 states that “a Legislative body shall not deny approval of a final or parcel
map if it has previously approved a tentative map for the proposed subdivision and if it finds that
the final or parcel map is in substantial compliance with the previously appr oved tentative map.”
The approval of a final map is considered a ministerial action.
Appropriate securities will be submitted prior to map recordation to guarantee completion of the
required subdivision improvements as shown in the Subdivision Agreement (Attachment F). The
Subdivision Agreement is still in draft form as some details are still being negotiated with the
Subdivider such as amount and timing of fee payments, bonds, and specific language in the
agreement. The resolution approving the final map also authorizes the Mayor to sign the
Subdivision Agreement requiring the Subdivider to complete the subdivision improvements.
CONCURRENCES
The Director of Public Works, the Director of Parks and Recreation, and the Natural Resources
Manager concur with the recommended action.
Item 11
ENVIRONMENTAL REVIEW
The project is exempt from the provisions of the CEQA under Government Code §65457
because the project consists of a residential development and is consistent with the SLRSP,
which was approved following certification of the SLRSP FEIR in 2017. No supplemental
Environmental Impact Report is required pursuant to Public Resources Code §21166 and State
CEQA Guidelines Section 15162 because: 1) the project does not include or require any
revisions to the certified SLRSP FEIR of FSEIR; 2) no substantial changes would occur with
respect to the circumstances under which the project is being undertaken, and no revisions to the
SLRSP FEIR or FSEIR are required; and 3) no new information of substantial importance is
available that was not already known at the time the SLRSP FEIR and FSEIR were certified.
For reference from Tract 3096: The San Luis Ranch Specific Plan and associated Final
Environmental Impact Report were approved and certified by the City Council on Jul y 18, 2017,
pursuant to Resolution No. 10822 (2017 Series). The City Council also certified a Final
Supplemental EIR on July 17, 2018, for a revised project, pursuant to Resolution No. 10927
(2018 Series). The FEIR and Final Supplemental EIR constitute the complete environmental
determination for Tract 3096.
The final map of Tract 3150 is substantially in conformance with the tentative map of Tract 3096
(San Luis Ranch) evaluated with these prior environmental determinations.
Approval of the final map is statutorily exempt under the California Environmental Quality Act
(CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision
maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no
further environmental review is required.
PUBLIC OUTREACH
Substantial public outreach was completed with the San Luis Ranch project entitlements. The
current project followed a “notify” level of public engagement as described by the City’s Public
Engagement and Notification Manual.
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Item 11
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund n/a
State n/a
Federal n/a
Fees n/a
Other:
Total
There is no new fiscal impact to the City associated with approving the final map for Tract 3150. A
fiscal analysis for Tract 3096 (Tract 3150 being the multi-family portion) showed that if residential
phases precede commercial phases, City expenditures would exceed revenues. At full buildout of
the project, ongoing revenues are projected to exceed ongoing expenditures.
ALTERNATIVE
Deny approval of the final map. Denying approval of the final map can apply if findings are
made that the requirements or conditions of the tentative map have not been met or performed
(Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in
substantial compliance with the previously approved tentative map (Section 66474.1 of the
Subdivision Map Act). Because the final map is in substantial compliance with the tentative map
and all of the conditions of the map will be met or securities deposited prior to map recordation,
Sections 66474.1 and 66473 of the Subdivision Map Act require that City Council approve the
map. Therefore, denying approval of the final map is not a recommended alternative unless the
required findings are made.
Attachments:
a - Draft Resolution
b - Vicinity Map
c - COUNCIL READING FILE - Resolution No. 11110 (2020 Series)
d - COUNCIL READING FILE - Tentative Map Tract 3150
e - COUNCIL READING FILE - Final Map Tract 3150
f - Subdivision Agreement - Tract 3150
g - COUNCIL READING FILE - Lot 10 Open Space Conservation Easement
h - COUNCIL READING FILE - Tract 3096 Resolution No. 10822
i - COUNCIL READING FILE - Tract 3096 Tentative Map
Item 11
R _____
RESOLUTION NO. _______ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3150
SAN LUIS RANCH (1035 MADONNA ROAD, FMAP-0309-2020)
WHEREAS, the City Council made certain findings concerning the vesting tentative map for
Tract 3150, as prescribed in Resolution No. 11110 (2020 Series); and
WHEREAS, the City Council approved a supplemental Final Environmental Impact Report
(FEIR) for Tract 3096 by Resolution No. 10927 (2018 Series); and
WHEREAS, the City Council entered into a Development Agreement with the Subdivider
of Tract 3096 (Includes Lots 1 and 2 multi-family lots, now described as lots 1 thru 12 Tract 3150)
with Ordinance No. 1649 (2018 Series); and
WHEREAS, the Community Development Director approved minor corrections to the
tentative map as allowed by the City Municipal Code and California Government Code; and
WHEREAS, the subdivider has requested that the Council approve the final map for
Tract 3150; and
WHEREAS, the maintenance within Tract 3150 shall be by a Homeowner’s Association, but
will be open to the public for bicycle and pedestrian use in easement areas, as well as emergency
access and maintenance/inspections of utilites; and
WHEREAS, lot 10 within Tract 3150 is reserved for private open space and conservation
easement, originating from Tract 3096; and
WHEREAS, Tract 3150 is required to have adequate access from Madonna Road,
condominium units will be created consistent with the circulation patterns and planned accessways
as envisioned within the San Luis Ranch Specific Plan for which this project is a component of; and
WHEREAS, Tract 3150 has requested construction access from Madonna Road, from
Madonna Road highway 101 on-ramp and off-ramp, Higuera Street, and Los Osos Valley Road; and
WHEREAS, the subdivider will submit appropriate securities to guarantee installation of
the required subdivision improvements as shown on the approved plans prior to map recordation,
and the required fees will be received prior to map recordation, as prescribed in the Subdivision
Agreement; and
Item 11
Resolution No. ______ (2020 Series) Page 2
R ______
WHEREAS, Tract 3096 final map shall record at the county recorders office before Tract
3150 final map, all requirements, conditions and mitigation measures from Tract 3096 required per
said Council Resolution No. 10822 (2017 Series) approving the Tract 3096 tentative map, Council
Resolution No. 10927 (2018 Series) certifying the Final Supplemental Environmental Impact
Report, and Ordinance No. 1649 (2018 Series) approving the Development Agreement.) have been
completed or appropriate securities will be in place to guarantee their completion prior to Tract
3096 map recordation; and
WHEREAS, none of the improvements being constructed by Tract 3150 are off-site and there
are no stand-alone projects that are required to be accepted for maintenance by the City prior to
completion of the remaining subdivision improvements; and
WHEREAS, approval of the final map is statutorily exempt under the California
Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval
of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines).
Therefore, no further environmental review is required.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The final map for Tract 3150 is found to be in substantial conformance with
the tentative map.
SECTION 2. The Mayor is authorized to accept an easements for driveway, parking,
pedestrian, and bicycles on Tract 3150 in a form acceptable to the Public Works Director and the
City Attorney; and
SECTION 11. Approval of the final map for Tract 3150 shown in Attachment A of the staff
report is hereby granted with the understanding that minor changes to the final map for technical
accuracy and condition compliance are still needed. The Public Works Director is authorized to
approve these changes and record the map when it is deemed to be complete and all conditions and
mitigation measures are complied with.
SECTION 12. The Mayor is authorized to approve revisions to the Subdivision Agreement
for Tract 3150 and execute the agreement in a form substantially shown in Attachment F of the staff
report.
SECTION 14. The Mayor and City staff are authorized to take action necessary to carry out
the intent of this resolution.
Item 11
Resolution No. ______ (2020 Series) Page 2
R ______
SECTION 15. Environmental Review. Both the FEIR and Final Supplemental EIR constitute
the complete environmental determination for the project. The final map is substantially in
conformance with the tentative map evaluated with these prior environmental determinations.
Approval of the final map is statutorily exempt under the California Environmental Quality Act
(CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of
Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further
environmental review is required.
Upon motion of Council Member _______________, seconded by Council Member
________________________, 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, on _____________________.
______________________________
Teresa Purrington
City Clerk
Item 11
VICINITY MAP
TRACT
3150
Item 11
1
SUBDIVISION AGREEMENT – TRACT 3150
THIS AGREEMENT is dated this ______ day of ________________2020 by and between
MI SAN LUIS RANCH, LLC, a Delaware limited liability company, herein referred to as
"Subdivider," and the CITY OF SAN LUIS OBISPO, herein referred to as the "City."
RECITALS
REFERENCE IS HEREBY MADE to that certain proposed subdivision of real property in
the City of San Luis Obispo, County of San Luis Obispo, State of California, a description of which
is shown on the Final Map of Tract 3150, City of San Luis Obispo, California, as approved by the
City Council on the _____ day of ______________, 2020.
The Subdivider desires that said Tract 3150 be accepted and approved as a Final Map
pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the San Luis
Obispo Municipal Code), and
It is a condition of said regulations that the Subdivider agree to install the improvements as
set forth on the plans therefore.
TERMS AND CONDITIONS:
In consideration of the foregoing, the Subdivider, or assignee, does hereby agree to construct
and install the following subdivision improvements (collectively, the “Improvements”), in
accordance with said subdivision regulations, and in accordance with approved plans and
specifications on file in the office of the City Engineer, City of San Luis Obispo, to wit:
1. CURB, GUTTERS AND SIDEWALKS
2. STREET BASE AND SURFACING
3. WATER MAINS and SEWER MAINS, including sewer laterals to the property line and
water services to the curb stop.
4. LANDSCAPING
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5. DRAINAGE STRUCTURES
6. STREETLIGHTS
7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the
inspection and approval of such facilities by the City, each public utility shall be required to
file a letter stating that the developer has properly installed all facilities to be provided by
him, and that the said utility is prepared to provide service to residents upon request.
8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project approvals.
All of the Improvements shall be installed in the locations designated and to the plans and
specifications as approved by said City Engineer and any approved modifications (the “Approved
Plans”).
The lines and grades for all of said improvements shall be established by the Subdivider in
accordance with the Approved Plans.
The Subdivider agrees that the work of installing the Improvements shall begin within
ninety (90) days from the date of recording of the final map, and that the work shall be completed
within sixty (60) months of said recording date, unless an extension has been granted by the City;
the grant of any such extension shall not be unreasonably withheld by the City. Subdivider further
agrees to annually renew the securities guaranteeing the Improvements until such time as the
Improvements are complete and accepted by the City. Should Subdivider fail to actively pursue the
Improvements for any twelve (12) consecutive month period, provided City provides thirty (30)
days written notice to Developer of such failure, and Subdivider fails to actively pursue the
Improvements during said thirty (30) day period, the City shall have the ability to call the requisite
Improvement Bonds. It is further provided that if completion of said work is delayed by acts of God
or labor disputes resulting in strike action, the Subdivider shall have an additional period of time
equivalent to such period of delay in which to complete such work. Any extension of time
hereunder shall not operate to release the surety on the Improvement Security filed pursuant to this
Item 11
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agreement. In this connection, the surety waives the provisions of Section 2819 of the Civil Code of
the State of California.
The Subdivider does also agree to comply with the conditions established by the City
Council and has paid the necessary fees as indicated on the attached Exhibits 1 and 2.
The setting of new survey monuments or resetting of disturbed monuments shall be in
accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors Act, Chapter
15 of the Business and Professions Code of the State of California.
The Subdivider attaches hereto, as an integral part hereof, and as security for the faithful
performance of this agreement, instrument(s) of credit or bond approved by and in favor of the City
of San Luis Obispo. Said instrument(s) of credit or bond is/are in the amount(s) shown in Exhibit 2,
which is the amount of the estimated cost of the Improvements.
Subdivider agrees to remedy any defects in the Improvements arising from faulty
workmanship or materials or defective construction of said improvements occurring within twelve
(12) months after the City’s acceptance thereof. In accordance with Sections 66499.7 and 66499.9
of the Government Code of the State of California, upon final completion and acceptance of the
work, City will release all but 10% of the improvement security, that amount being deemed
sufficient to guarantee faithful performance by the Subdivider of his obligation to remedy any
defects in the Improvements arising within a period of one year following the completion and
acceptance thereof.
Completion of the Improvements shall be deemed to have occurred on the date which the
City Council shall, by resolution duly passed and adopted, accept said improvements according to
said plans and specifications, and any approved modifications thereto. Neither periodic nor
progress inspections or approvals shall bind the City to accept The Improvements or waive any
defects in the same or any breach of this agreement.
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“AS-BUILT” record drawings are to be submitted upon completion of construction and
prior to City acceptance of the Improvements.
If the Subdivider fails to complete the Improvements within the prescribed time, the
Subdivider agrees that City may, at its option, declare any instrument of credit or bond which has
been posted by Subdivider to guarantee faithful performance, forfeited and utilize the proceeds to
complete The Improvements, or City may complete said improvements and recover the full cost and
expense thereof from the Subdivider or its surety.
The Subdivider has deposited with the City a labor and materials surety or sureties in the
amount of 50% of the Improvements in accordance with State law.
Said Subdivider shall pay an inspection fee for City to inspect the installation of said
Improvements, and to verify that they have been completed in accordance with the plans and
specifications.
If off-site dedication of property is necessary to facilitate the construction of the required
Improvements, the Subdivider and City shall adhere to the requirements of Section 6.03.1 of the
Development Agreement adopted by the City Council on August 21, 2018 by Ordinance No. 1649
(2018 Series) with regards to acquiring said off-site dedication.
Pursuant to Government Code Section 66474.9(b), the Subdivider shall defend, indemnify
and hold harmless the City and/or its agents, officers and employees from any claim, action or
proceeding against the City and/or its agents, officers or employees to attack, set aside, void or
annul, the approval by the City of this subdivision, and all actions relating thereto, including but not
limited to environmental review (“Indemnified Claims”). The City shall promptly notify the
subdivider of any Indemnified Claim upon being presented with the Indemnified Claim and City
shall fully cooperate in the defense against an Indemnified Claim.
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It is understood and agreed by and between the Subdivider and the City hereto that this
agreement shall bind the heirs, executors, administrators, successors and assigns of the respective
Parties to this agreement.
[signatures on following page]
Item 11
6
IN WITNESS WHEREOF, this agreement has been executed by:
SUBDIVIDER
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: ____________________________
Donald R. Faye
Its Authorized Agent
CITY OF SAN LUIS OBISPO
_
Heidi Harmon, Mayor
ATTEST:
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
__
J. Christine Dietrick, City Attorney
Item 11
7
EXHIBIT 1
TRACT 3150
SUBDIVISION AGREEMENT
1. The Subdivider has deposited/will deposit a monumentation security in the amount of
$6,900 to guarantee the installation of survey monuments in accordance with the approved
map and payment for same. Said guarantee will be released once the installation of
monuments has been verified and that existing monuments have not been disturbed, and
upon receipt by the City of a letter from the Surveyor indicating that they have completed
the work and have been paid. Subdivider shall adhere to the requirements of California
Business and Professions Code Section 8771 with regards to monument preservation. The
monumentation security also guarantees the replacement of any monuments that were
disturbed during construction, along with filing of Records of Survey or Corner Records
required by said Section 8771.
2. Park in-lieu fees for the multi-family Tract 3150 are deferred to time of building permit
issuance per the Subdivision Agreement of Tract 3096.
3. The Subdivider has elected to pay a roadway maintenance fee to satisfy Condition #62 of
Resolution no 10822 (2017 series). The fee of $_________ was approved by the City
Engineer in accordance with City Engineering Standards and guidelines.
4. The subdivider shall comply with all requirements of Council Resolution No. 11110
(2020 Series) and also related Council Resolutions from Tract 3096 approving the
tentative map, approving the Specific Plan, and certifying the Final Environmental
Impact Report; Council Resolution No. 10927 (2018 Series) certifying the Final
Supplemental Environmental Impact Report, and Ordinance No. 1649 (2018 Series)
approving the Development Agreement.
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EXHIBIT 2
TRACT 3150 - FEE AND BOND LIST,
MADONNA ROAD
Amount Form Date
Received
Bond Release Status
Bonds and Guarantees:
Faithful Performance: Can be released upon City Council acceptance of improvements,
deposit of one-year warranty surety, and approval of record drawings.
1 GRADING & SUBDIVISION
IMPROVEMENT @ SAN LUIS
RANCH MULTI-FAMILY
(GRAD-6055-2019)
$5,937,000 Bond Based on August 2020
Engineer’s estimate of probable
cost, may be adjusted based on
actual construction bids.
Off-Site - Faithful Performance: Can be released upon Public Works Director acceptance of
improvements, deposit of one-year warranty surety, and approval of
record drawings.
N/A FOR OFFSITE for Tract
3150.
SEE TRACT 3096 FOR OFF-
SITE.
N/A N/A N/A
Labor & Materials (50% of cost of
each of the above improvements)
Can be released 90 days after
acceptance of improvements, if
no claims. (Civil Code Section
8412)
Amount Form Date
Received
Bond Release Status
1 GRADING & SUBDIVISION
IMPROVEMENT @ SAN LUIS
RANCH MULTI-FAMILY
(GRAD-6055-2019)
$5,937,000 /
2
= $ 2,968,500
Bond
10% Warranty To be collected prior to release of
Faithful Performance Bonds
Can be released one-year after
acceptance of improvements, if
no defects, and approval of
record drawings.
Fees:
Amount Form Date
Received
Status
Map Check Fee (Base Fee)
$15,076.46
Check 7/16/20 Paid
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Map Check Remaining Fee
$48,132.56 $162.61 x 296 units
1.
Improvement Plancheck Fees
GRADING & SUBDIVISION
IMPROVEMENT @ SAN LUIS
RANCH MULTI-FAMILY
(GRAD-6055-2019)
IT Surcharge
$22,846.00
$685.38
Check
Check
Based on construction estimate
for water infostructure
($827,738) + Sewer Manhole
and Tie in ($6,500)
1.
Construction Inspection Fees
GRADING & SUBDIVISION
IMPROVEMENT @ SAN LUIS
RANCH MULTI-FAMILY
(GRAD-6055-2019)
Amount
$47,497.89
Form
Check
Received
Status
Based on construction estimate
for water infostructure
($827,738) + Sewer Manhole
and Tie in ($6,500)
Roadway Maintenance Fee $TBD
To be deposited in Acct #
40050300-90346953 Streets
Reconstruction and Resurfacing
Master per Matt Horn
Park In-Lieu Fees for multi-
family units
To be collected with building
permit
Per Notice of Requirements,
Item 3 of Tract 3096
Amount
Form
Date
Received
Fair Share Traffic Mitigation
Fees:
N/A for Tract
3150
Traffic Mitigation Fees are paid
with Tract 3096 Subdivision
Agreement.
Other Impact Fees:
Affordable Housing
Requirements
See Affordable Housing Agreement
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TRACT
3150
Item 11
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Item 11
Department Name: Community Development
Cost Center: 4007
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Cara Vereschagin, Housing Coordinator
SUBJECT: CONSIDERATION OF AN AFFORDABLE HOUSING FUND REQUEST
FROM HASLO FOR ACQUISITION OF AN AT-RISK AFFORDABLE UNIT
LOCATED AT 1664 FOREMAN COURT AND ADMINISTRATIVE
AMENDMENT OF THE 2019 ACTION PLAN OF HASLO’S 2019
COMMUNITY DEVELOPMENT BLOCK GRANT AWARD FOR SPECIAL
NEEDS ACQUISITION/AT-RISK OF HOMELESSNESS CLIENTS PROJECT
RECOMMENDATION
1. Adopt a Resolution approving the “silent second” City loan amount to be paid back to the
City into the Affordable Housing Fund (AHF), upon the market-value resale of the affordable
housing unit located at 1664 Foreman Court to the Housing Authority of the City of San Luis
Obispo (HASLO), to assist with the acquisition of the existing property (Attachment A); and
2. Adopt a Resolution approving a recommendation to the Department of Housing and Urban
Development (HUD) to approve an Administrative Amendment to the 2019 Action Plan to
expand HASLO’s 2019 Community Development Block Grant (CDBG) award from a
Special Needs Housing Acquisition project to include acquisition of property to house At-
Risk of Homelessness clients (Attachment B).
DISCUSSION
Background of AHF Request
The 3-bedroom duplex located at 1664 Foreman Ct. has been in the City’s Affordable Housing
Program since its construction in 2003. The property is currently at-risk of falling out of the
Program due to today’s current housing market conditions. The current owner has proposed to
sell the unit at current market value, and thus will be required to pay back the City’s “silent
second” mortgage lien on the property. The current Owner has agreed to sell the property to
HASLO, and has in-turn requested the City Council consider awarding the incoming returned
payment from the City’s lien, approximated to be around $55,000, to financially assist with the
property’s acquisition (Attachment C). In turn, HASLO will retain the property as affordable
rental housing for 55 years.
Background of 2019 Action Plan Administrative Amendment
One of the main reasons why this particular property is of interest to HASLO, is that they were
awarded $336,815 of Community Development Block Grant (CDBG) funds from the 2019
Program Year to acquire an existing housing unit within the City to house low-income special
needs clients (Attachment D).
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Because the housing market in San Luis Obispo has remained strong and competitive, HASLO
has experienced challenges acquiring property suited to house special needs clients, because of
the additional amenities that must be provided in special needs-type housing.
HASLO has recently experienced an influx of requests and inquiries on affordable housing
opportunities due to the COVID-19 pandemic. Many of these requests are from families that are
either homeless or at-risk of becoming homeless, due to the pandemic related economic crisis.
Amending the 2019 Action Plan will expand the allowable use of the CDBG funds for HASLO
to not only acquire property to house special needs clients, but also those at-risk of
homelessness. Additionally, HASLO has a deadline of May 2021 to expend these CDBG funds,
otherwise the funding will get absorbed back into the main funding pot of the City’s CDBG
annual allocation and eventually reallocated to a future grant-eligible project (e.g. affordable
housing, public works, or economic development projects).
Policy Context
The recommendations to adopt these two Resolutions to ultimately provide City funding to
preserve at-risk affordable housing units, is supported by several goals, policies, and programs in
the City’s Housing Element and the 2019-21 Housing Major City Goal. For example, Policy
6.21 of the City’s Housing Element states “actively seek new revenue sources, including State,
Federal and private/non-profit sources, and financing mechanisms to assist affordable housing
development for extremely low, very low and low- or moderate-income households and first-
time homebuyers.” These recommendations are consistent with this policy because the returned
payment the City will be receiving as a result of the property sale, as well as the expanded use of
the CDBG funding will be used to financially assist HASLO to provide an affordable place to
live for households at-risk of becoming homeless.
Staff also finds consistency in HASLO’s request of utilizing the incoming silent second loan
payment returning to the City upon the property’s market-rate resale consistent with the AHF
Award Criteria, including eligibility, need, suitability, timing, financial effectiveness, and
readiness.
Public Engagement
As this is a request for City AHFs, the project has a “notify” level of engagement under the
Public Engagement and Notification Manual. Public comment can be provided to the City
Council through written correspondence prior to the meeting and through public testimony at the
meeting.
Public engagement was previously incorporated in every step of the 2019 CDBG award process.
All public hearings were noticed properly, and all outreach was consistent with the City’s public
engagement manual. Additionally, the action to recommend an administrative amendment to the
2019 Action Plan, is consistent and allowable under the 2019 Community Participation Plan
which follows HUD guidelines for public engagement.
Item 12
CONCURRENCE
The City Attorney’s Office has confirmed upon a market-rate resale 1664 Foreman Court, the
City’s current owner-occupancy provisions within the deed of trust recorded on title will become
extinguished, thus allowing HASLO tot operate the unit as a rental property.
City staff also consulted with County Planning and Building staff on HASLO’s interest to
purchase the property. County staff reviewed HASLO’s 2019 CDBG application for Special
Needs Acquisition/At-Risk of Homelessness clients, the project description in the 2019 Action
Plan as “Special Needs Acquisition,” and consulted the Urban County’s Community
Participation Plan (CPP). County staff determined the proposal is consistent with Section II –
Consolidated/Action Plans, Administrative Amendment requirements of the CPP to amend the
2019 Action Plan.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal $336,815
Fees
Other: AHF ~$55,000
Total
The property recently appraised for $600,000, thus the award of the approximate returned
~$55,000, as well as the $336,815 allowance of CDBG funds, leaves a remaining financing gap
of about $208,000. This is a fair price for HASLO to preserve existing affordable housing.
Should this deal successfully close escrow at the end of October, several accomplishments will
have been achieved:
1. The unit will remain in the City’s Affordable Housing Program as an affordable rental
unit for the community’s most vulnerable population.
2. Both the City and HASLO will remain in “good-standing” with HUD on the timely
expenditure of CDBG funding.
3. The current owner of the property will have upward mobility in the housing market,
which is one of the main goals the City’s Affordable Housing Program.
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The City’s AHF currently has a balance of ~$2.3M. Of the available balance, $2M was
previously committed earlier this year to Peoples’ Self -Help Housing for two new 100%
affordable housing developments, Tiburon Place and Broad Street Place; thus there is a
remaining amount of ~$330,000 for new affordable housing projects.
ALTERNATIVES
1. Do not approve the returned payment from the City’s silent second lien to go back into the
property by means of an award to HASLO. This action is not recommended because this is
money the City never expected to gain from this affordable housing unit.
2. Approve the award payment in a different amount. This action is not recommended because
HASLO has carefully considered their need for assistance and this amount reflects what is
needed to successfully finance this acquisition.
3. Continue consideration of the proposed award and amendment. This action is not
recommended because these decisions are on a very strict deadlines in-place by HUD and the
property’s current owner.
Attachments:
a - Draft Resolution - Reallocation of Affordable Housing Funds upon the resale of 1 664
Foreman Ct.
b - Draft Resolution - Administrative Amendment to 2019 Action Plan
c - AHF Request Letter from HASLO for 1664 Foreman Ct.
d - Resolution No. 10984 approving the 2019 CDBG Program
Item 12
R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE REALLOCATION OF
AFFORDABLE HOUSING FUNDS UPON THE MARKET-VALUE
RESALE OF THE AFFORDABLE HOUSING UNIT LOCATED AT 1664
FOREMAN COURT TO THE HOUSING AUTHORITY OF THE CITY OF
SAN LUIS OBISPO TO ASSIST WITH THE ACQUISITION OF THE
EXISTING PROPERTY.
WHEREAS, the City Council of the City of San Luis Obispo convened via teleconference
on October 6, 2020, for the purpose of considering a request for Affordable Housing Fund (AHF)
assistance; and
WHEREAS, the proposed project by the Housing Authority of the City of San Luis Obispo
(HASLO) meet the eligibility criteria established by the City Council; and
WHEREAS, Housing Element policies and programs encourage and support the
preservation of existing affordable housing in the City; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff at the said
meeting.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. AHF Reallocation to HASLO for Acquisition of 1664 Foreman Court. The
City Council does hereby approve a reallocation of AHF in an amount not to exceed the total
amount of payment to be returned back to the City from the market-value resale of 1664 Foreman
Ct., subject to the following condition of approval:
1. Prior to the close of escrow of 1664 Foreman Court, the City and HASLO will enter
into an Affordable Housing Agreement and Declaration of Restricted Covenants
evidencing the AHF award and rental provisions, which will be recorded on title of the
property.
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Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 2. Environmental Determination. 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.
Upon motion of Council Member _____________, seconded by Council Member
____________, 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, on ___________________.
____________________________________
Teresa Purrington
City Clerk
Item 12
R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A RECOMMENDATION TO THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO
APPROVE AN ADMINISTRATIVE AMENDMENT TO THE 2019 ACTION
PLAN TO EXPAND THE HOUSING AUTHORITY OF SAN LUIS
OBISPO’S 2019 COMMUNITY DEVELOPMENT BLOCK GRANT
AWARD FOR A SPECIAL NEEDS HOUSING ACQUISITION PROJECT
TO INCLUDE ACQUISITION OF PROPERTY TO HOUSE AT-RISK OF
HOMELESSNESS CLIENTS
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso
Robles, Pismo Beach, and the County of San Luis Obispo; and
WHEREAS, said cities and County cooperatively administer several federal grant
programs under the provisions of the Cooperative Agreement executed between the City and
County on September 23, 2014, and under applicable U.S. Department of Housing and Urban
Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and
HUD rules, the City Council held a public hearing on February 19, 2019, to consider funding
recommendations by the Human Relations Commission (HRC), to review applications for federal
grant funding, and to consider public comments on community needs and the use of such funds;
and
WHEREAS, the Council considered applications for Community Development Block
Grant (CDBG) funds, public testimony, the Urban County’s proposed One-Year Action Plan, and
the HRC and staff recommendations included in the agenda report and approved the 2019 CDBG
funding recommendations as Resolution No. 10984; and
WHEREAS, the Housing Authority of the City of San Luis Obispo (HASLO) has
requested to expand their awarded project scope to include the acquisition of property for special
needs individuals and at-risk of homelessness clients; and
WHEREAS, County staff reviewed HASLO’s 2019 CDBG application for Special Needs
Acquisition/At-Risk of Homelessness clients, the project description in the 2019 Action Plan as
“Special Needs Acquisition,” and consulted the Urban County’s Community Participation Plan
(CPP). County staff determined the proposal is consistent with Section II – Consolidated/Action
Plans, Administrative Amendment requirements of the CPP to amend the 2019 Action Plan; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Item 12
Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 1. Administrative Amendment to HASLO’s 2019 Community Development
Block Grant Project. The City Council recommends HUD to approve an administrative
amendment to the 2019 Action Plan to expand HASLO’s 2019 CDBG Project to include the
acquisition of property to include real property acquisition to house at-risk of homelessness clients.
SECTION 2. Environmental Determination. The project is exempt from environmental
review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with
certainty that CDBG funding allocations could not have a significant effect on the environment.
SECTION 3. Community Development Director Authority. The Community
Development Director is authorized to act on behalf of the City in executing any other actions
necessary related to this administrative amendment of the 2019 CDBG Program.
Upon motion of Council Member _______________, seconded by Council Member
______________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purington, City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on _____________________.
____________________________________
Teresa Purington, City Clerk
Item 12
Item 12
Item 12
R 10984
RESOLUTION NO. 10984 (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2019 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso
Robles, Pismo Beach, and the County of San Luis Obispo; and
WHEREAS, said cities and County cooperatively administer several federal grant
programs under the provisions of the Cooperative Agreement executed between the City and
County on September 23, 2014, and under applicable U.S. Department of Housing and Urban
Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and
HUD rules, the City Council held a public hearing on February 19, 2019, to consider funding
recommendations by the Human Relations Commission (HRC), to review applications for federal
grant funding, and to consider public comments on community needs and the use of such funds;
and
WHEREAS, the Council has considered applications for Community Development Block
Grant (CDBG) funds, public testimony, the Urban County’s proposed One-Year Action Plan, and
the HRC and staff recommendations included in the agenda report; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Environmental Determination. The project is exempt from environmental
review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with
certainty that CDBG funding allocations could not have a significant effect on the environment.
SECTION 2. 2019 Community Development Block Grant Program Amendments. The
City’s 2019 Community Development Block Grant Program is hereby approved, as shown in
Exhibit A. The Community Development Director is authorized to approve final dollar amounts
once HUD releases allocations with the direction to make up differences in the two amounts. Any
additional increase in funding shall be allocated to HASLO and SLONP’s affordable housing
project once increases for public services (15% of allocation) and program administration (20% of
allocation) have been adjusted.
SECTION 3. Board of Supervisors Consideration. The Council hereby forwards the
above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the
Board’s final action on the Urban County’s 2019 Consolidated Plan.
Item 12
Resolution No. 10984 (2019 Series) Page 2
SECTION 3. Community Development Director Authority. The Community
Development Director is authorized to act on behalf of the City in executing grant agreements and
other actions necessary to implement the approved Consolidated Plan and CDBG Program,
including revisions to funding amounts for the 2019 CDBG Program if the City's actual CDBG
allocation is different than expected.
Upon motion of Vice Mayor Pease, seconded by Council Member Gomez, and on the following
roll call vote:
AYES: Council Members Christianson, Gomez, and Stewart,
Vice Mayor Pease, and Mayor Harmon.
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of February 2019.
ATTEST:
Teresa Purington
City Clerk
AS
Y. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this day of , 2-o ti
Teresa Purington
City Clerk
M,
Item 12
Resolution No. 10984 (2019 Series) Page 3
R 10984
EXHIBIT A
2019 CDBG Preliminary Funding Recommendations
Item 12
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Item 12
Department Name: Administration
Cost Center: 1021
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared by: Teresa Purrington, City Clerk
SUBJECT: AUTHORIZATION TO AMEND THE 2020 CITY COUNCIL MEETING
CALENDAR
RECOMMENDATION
Amend the 2020 City Council Meeting Calendar to cancel the rescheduled Regular City Council
Meeting of Tuesday, November 10, 2020 and add a rescheduled Regular Meeting on Tuesday,
December 8, 2020.
DISCUSSION
The City Council’s 2020 meeting schedule was adopted on November 12, 2019. Past practice
during election years is to reschedule the meeting scheduled for the first Tuesday in November
(November 3, 2020) to the second Tuesday in November (November 10, 2020) to minimize the
potential for conflicts with the General Municipal Election and to consolidate the first and
second meetings in August and December into one meeting for each of those months. There are
currently no items scheduled for the November 10, 2020 meeting and staff is recommending that
the meeting to be cancelled.
In addition, staff is proposing to reschedule the previously cancelled December 15, 2020 meeting
to December 8, 2020. This will allow the December 1, 2020 City Council meeting to be larg ely
ceremonial for the purposes of certifying election results and installing the new Mayor and
Council. The December 8, 2020 will be the first working meeting for the elected City Council
allowing more time for the public hearing and business items. A copy of the approved 2020
meeting schedule is attached. (Attachment A)
Policy Context
Council Policies and Procedures Section 1.1.2.1 establishes the first and third Tuesday of every
month as the regular meetings for the City Council. Section 1.1.2.4 allows for a majority of the
Council to cancel and reschedule a meeting if needed.
Public Engagement
This is an administrative item, so no additional public engagement was conducted. Public
comment regarding this item can be provided to the City Council through written
correspondence and through public testimony at the meeting.
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 IMPACTS
There are no fiscal impacts associated with the recommended action since the request does not
add a new meeting, it only reschedules an existing regular meeting.
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:
Total
There is no fiscal impact associated with this agenda item.
ALTERNATIVES
Do not approve the amendments. Council could choose to not cancel the November 10, 2020
rescheduled regular meeting and add the rescheduled regular December 8, 2020.
Attachments:
a - 2020 Schedule of City Council Meetings
Item 13
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City Council Meeting Schedule
December
July Au gust
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Re-scheduled Regular
January February March
Regular Meetings
Recommend Cancellation
Holidays
September
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Item 13
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Item 13
Department Name: Community Development
Cost Center: 4001
For Agenda of: October 6, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Michael Codron, Community Development Director
SUBJECT: TAX EXCHANGE AGREEMENT WITH COUNTY OF SAN LUIS OBISPO
FOR THE FIERO LAND AND EAST AIRPORT AREA ANNEXATIONS
RECOMMENDATION
Adopt a Resolution accepting a tax exchange agreement with the County of San Luis Obispo
addressing tax transfers from the Fiero Lane and East Airport area annexations (Attachment A).
DISCUSSION
Background
Annexation No. 81 consists of two areas previously approved for annexation by the City
Council. On November 19, 2019, the City Council adopted Resolution No. 11062 appr oving the
Fiero Lane Annexation (Attachment B). On March 17, 2020, the Council adopted Resolution No.
11103 approving the East Airport Annexation (Attachment C). The City Council’s approval of
these annexations authorized staff to submit formal applications to the Local Agency Formation
Commission (LAFCO) to complete the annexation process. In this case, both annexations have
been consolidated under a single LAFCO application, and action on the City’s request is
currently scheduled for action by LAFCO in November. The consolidation of these two
annexations is appropriate due to the physical proximity of the two areas, and the significant
amount of shared utilities infrastructure that will be installed as part of the annexation process.
State law requires that jurisdictions affected by an annexation (in this case, the County and the
City of San Luis Obispo) negotiate an exchange of the taxes paid in the annexation area prior to
LAFCO approval of the jurisdictional change. On July 7, 2020, the County Board of Supervisors
(“the Board”) approved the commencement of tax exchange negotiations with the City. The
Revenue and Taxation Code requires that negotiations be concluded within 60 days, unless
extended by mutual agreement between the involved agencies for an additional 30 days. On
September 4, 2020, LAFCO authorized a 30-day extension of the negotiation period to allow
time for the City and County to conclude the discussions. On Friday, September 11, 2020, the
City and County came to agreement on the recommended tax exchange agreement.
Item 14
Summary of Tax Exchange Agreement
In 1996, the City and County adopted a joint resolution, along with several other cities in the
County, to establish a county-wide policy regarding tax exchanges (Attachment D). The
“master” tax exchange agreement is based on two principles, (1) that the County should not
“profit” from annexations, nor should annexations result in a net fiscal loss to the County, and
(2), that tax exchange practices should not undermine good land use planning by discouraging
cities from pursuing logical and appropriate annexations.
With these principles as the base for discussions, City and County staff have negotiated an
agreement specific to the Fiero Lane and East Airport area annexations. The resolution
recommended for adoption provides for the City to receive all of the sales tax from the
annexation area, and 14% of the property tax increment. The County would retain the existing
property tax base for the area, plus 86% of the property tax increment.
When the City prepared the Airport Area Specific Plan, a fiscal analysis was prepared showing a
net positive benefit associated with annexation and development in the area. This analysis
assumed that the City would not gain any property increment from development of commercial
or industrial land in the specific plan area. In this case, the City is able to retain 14% of the
property tax increment, and pre-annexation agreements were negotiated that include two
important financial benefits in favor of the City – 1) direct payment of $1 million by the East
Airport portion of the annexation to the City’s Transportation Impact Fee program, and 2) major
infrastructure upgrades including curb, gutter and sidewalk repairs, new paving of area streets,
water, recycled water, and wastewater backbone and service lines.
Pre-Annexation Agreements and Infrastructure Financing
Pre-annexation agreements approved for the annexation areas help to ensure that there are no
negative fiscal impacts associated with the annexation. In this case, the City was able to
negotiate with the land owners substantial improvements to existing public facilities within the
annexation area, including sidewalk upgrades, new paving, installation of utilities infrastructure,
and in the case of the East Airport Area, a $1 million dollar contribution to the City’s
Transportation Impact Fee program.
As part of the annexation process, the City will be working with the property owners, the
County, and the Statewide Community Infrastructure Program (SCIP) to allow for the necessary
improvements to be funded through SCIP. Both the City and County are members of SCIP and
this project is expected to be the first that the City will support through the program. Normally,
bond financing of public improvement projects is limited to projects that are large enough to
make all of the financing costs reasonable in light of total project costs. The SCIP program is
beneficial because it makes low cost financing for public improvements available to
communities by pooling together a number of smaller projects under a single bond issuance.
Item 14
Tax Exchange History
Prior to 1996, tax exchange negotiations between the County and cities were more contentious,
with the County “holding most of the cards.” This is because the negotiati on process would not
commence until after the annexation applications had gone through a lengthy and complex city
development review process. According to the State Revenue and Taxation Code (Section 99),
exchange negotiations must be concluded within 60 days or the annexation application would
terminate.
Given this process, our City (like others) was under pressure to agree to high County
expectations for sharing tax revenue. Such expectations were increasing across the state, with
counties demanding not only existing revenue, but major shares of future revenue, including
transient occupancy tax and sales tax.
Counties have a need for revenue to support services to residents - even city residents - because
as cities grow, so does the demand for county services (e.g. court, health care, social services,
etc.). As a result, many cities and counties throughout California have become engaged in very
contentious tax negotiations, to the detriment of all involved.
To address this situation in San Luis Obispo County, the Mayors of the cities in the County
commissioned an extensive study of the added burdens created for our County by development
within the boundaries of cities. As a result, several cities in San Luis Obispo County entered into
a “master” tax exchange agreement with the County in 1996. This agreement greatly reduces the
uncertainty and conflict inherent in the previous annexation process.
Policy Context
The annexations were previously approved by the City Council, consistent with City policy.
Annexation is an implementation of the Airport Area Specific Plan. City land use control of the
area helps to ensure that the objectives of the specific plan are accomplished.
Public Engagement
A “Notify” level of public engagement has been used for this item, consistent with the City’s
Public Engagement and Notification Manual.
CONCURRENCE
After annexation, the City will be responsible for providing services to the newly incorporated
area. As a result, all City departments that provide services to this ar ea have been involved in the
development of plans for the area and concur with the annexation and current recommendation.
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.
Item 14
FISCAL IMPACT
Budgeted: No Budget Year: 2020-2021
Funding Identified: No
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A
State
Federal
Fees
Other:
Total
The “master” tax exchange agreement with the County has been in effect since 1996. The
negotiated agreement for Annexation No. 81 is consistent with the “master” tax exchange
agreement, which requires a case by case negotiation for annexation of developed land.
When the City’s General Plan Land Use Element (LUE) was adopted in 2015, it was determined
to have a neutral fiscal impact. In other words, future expenditures associated with build-out of
the land use plan are supported by future revenues. Because development and annexation within
the Fiero Lane and East Airport areas were considered in the fiscal analysis and are consistent
with the General Plan, Annexation No. 81 is expected to have a neutral fiscal impact on the City.
Incremental costs associated with the annexation associated with ongoing costs for maintenance
of public facilities will be incorporated into future City operational program expenditure budgets.
Normal maintenance costs will not be realized for some time due to the improvements (curb,
gutter, sidewalk repair, street paving, and water/sewer infrastructure) being installed by the
property owners within the annexation area.
ALTERNATIVES
1. If the City Council has specific concerns with the proposed Agreement, direct staff to re -
open negotiations with the County with specific negotiating parameters. This alternative is
not recommended because the negotiated agreement is consistent with the Master Tax
Exchange agreement with the County and provides the City with an appropriate share of the
property tax increment.
2. The City Council may continue consideration of this item if additional information is needed
to for decision making. Direction should be provided to staff on the additional information
necessary to move forward with an agreement. This alternative is not recommended because
the current negotiation period is set to expire and if this alternative is chosen then the Board of
Supervisors will need to act to establish a new 60-day negotiating period.
Item 14
Attachments:
a - Draft Resolution
b - COUNCIL READING FILE - Resolution No. 11062 (2019 Series) - Fiero Lane
Annexation
c - COUNCIL READING FILE - Council Resolution No. 11103 (2020 Series) - East Airport
Annexation
d - Master Tax Exchange Agreement with County
Item 14
R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING A NEGOTIATED EXCHANGE OF
TAX REVENUE AND ANNUAL TAX INCREMENT BETWEEN THE
COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO
FOR ANNEXATION NO. 81 (FIERO LANE AND EAST AIRPORT
AREAS), AS REPRESENTED IN THE STAFF REPORT AND
ATTACHMENTS DATED OCTOBER 6, 2020
WHEREAS, the City of San Luis Obispo, a charter city and municipal corporation, wishes
to move forward with Annexation No. 81 (Fiero Lane and East Airport areas); and
WHEREAS, the Revenue and Taxation Code Section 99(a)(1) requires that the amount of
tax revenue to be exchanged, if any, and the amount of annual tax increment to be exchanged
among the affected local agencies shall be determined by negotiation; and
WHEREAS, the Revenue and Taxation Code Section 99(b)(6) requires that each local
agency, upon completion of negotiations, adopt resolutions whereby said local agencies agree to
accept the negotiated exchange of property tax revenues, if any, and annual tax increment and
requires that each local agency transmit a copy of each such resolution to the Executive Officer of
the Local Agency Formation Commission; and
WHEREAS, no later than the date on which the certificate of completion of the
jurisdictional change is recorded with the County Recorder, the Executive Officer shall notify the
County Auditor of the exchange of tax revenues by transmitting a copy of said resolutions to him
and the County Auditor shall thereafter make the appropriate adjustments as required by law; and
WHEREAS, the negotiations have taken place concerning the transfer of tax revenues and
annual tax increments between the County of San Luis Obispo and the City of San Luis Obispo
pursuant to Section 99(a)(1) for the jurisdictional change designated as Annexation No. 81 to the
City of San Luis Obispo; and
WHEREAS, the negotiating party, to wit: Guy Savage, Assistant County Administrative
Officer and Emily Jackson, Budget Director, County of San Luis Obispo, on behalf of the County
and Shelly Stanwyck, Assistant City Manager for Community Services and Michael Codron,
Community Development Director, City of San Luis Obispo, on behalf of the City have negotiated
the exchange of tax revenue and annual tax increments between such entities as hereinafter set
forth; and
WHEREAS, it is in the public interest that such negotiated exchange of tax revenues and
annual tax increments be consummated.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Item 14
Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 1. Agreement. The City Council agrees to accept the following negotiated
exchange of base tax revenues and annual tax increment:
1. No base property tax revenue shall be transferred from the County of San Luis Obispo to
the City of San Luis Obispo.
2. County will retain 86% of the future property tax increment, after transfers to the
Educational Revenue Augmentation Fund (ERAF), in the Fiscal Year 2021-22 and each
fiscal year thereafter.
SECTION 2. Transmittal. The City Clerk is authorized and directed to transmit a certified
copy of the resolution to the Executive Officer of the San Luis Obispo Local Agency Formation
Commission, who shall then distribute copies in the manner prescribed by law.
Upon motion of Council Member _______________, seconded by Council Member
______________, 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, on ______________________.
____________________________________
Teresa Purrington, City Clerk
Item 14
...
J<., ... T RESOLUTION NO. 01-96
A RESOLUTION OF THE CITIES
OF SAN LUIS OBISPO COUNTY ESTABLISHING A COUNTYWIDE POLICY FOR PROPERTY
·TAX EXCHANGE UPON ANNEXATION
WHEREAS, changing governmental fiscal relationships have required a modification to
the earlier approach to determining property tax exchange between cities and the County
upon annexation; and ·
WHEREAS, ttie extent and nature of this modification has been agreed upon through a
process of negotiation between the cities and the County based upon a shared goal of
producing a countywide tax exchange agreement that is fair to all parties; and
WHEREAS, a fair agreement is one that respects the following two principles: (1) that
the County should not "profit" from annexations, nor should annexations result In a net
fiscal loss to the County; (2) that tax exchange practices should not undermine good
land use planning by discouraging cities from pursuing logical and appropriate
annexations; and
WHEREAS, in order to provide objective data upon which to develop an equitable
agreement, the cities commissioned an independent fiscal study of the impact of
annexation and development of vacant lands around cities on County government; and
WHEREAS, the results of this study assisted in the development of a new countywide
tax exchange. agreement; and
WHEREAS, upon adoption· of the agreement, the County and the cities will continue to
collaborate on related matters of shared importance, including: (a) following adoption by
the Board of Supervisors, reconsidering a countywide development impact fee program, which may include appropriate city impact fees for county development occurring. in the unincorporated fringe of cities for which a clear City impact can be determined; and (b) support existing policies which encourage urban-like development within the boundariesof cities. · · ··
NOW, THEREFORE, BE IT RESOLVED by the City Councils ofthe Cities of San Luis Obispo County:
1.For "raw land" annexations prezoned commercial or industrial, the County. retains the existing proper ty tax base and all of the future property taxincrement. .
2.For annexations prezoned residential, the County retains theexisting property tax base and two-thirds (66%) of the future property taxincrement. ·
B3-6
Item 14
Aftachffentl
3. 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.
4. For annexations prezoned agricultural, the County retains the' existing
property tax base and all of the future property tax increment.
5. The County and the cities agree to re-examine the above policies at five-
year intervals to assure that they remain appropriate and current for all
parties.
PASSED AND ADOPTED by the City Councils of the Cities of San Luis Obispo County
at a special joint meeting thereof held on the 25th day of April, 1996.
MAYOR OF ARROYO G ND
ATTEST:
a
CI CLEAK
MAYOR OF ATASCADERO
ATTEST: Not adopted)
CITY CLERK
MAYOR OF GR VER BEACH
ATTEST:
r ,
CITY CLERK
Item 14
i
nt Z.
Resolution No. J01-96 Macage 3
MAYOR OF MORRO BA
ATTEST:
CITY CLER
MAYOR OF PASO ROBLES
ATTEST:
Not participating)
CITY CLERK
MAYOR OF PISMO BEACH
ATTEST: Not participating)
CITY CLERK
MAYO OF SAN LUIS OBISPO
ATTEST:
CLE
B2 8
Item 14
Department Name: Public Works
Cost Center: 5006
For Agenda of: October 6, 2020
Placement: Business
Estimated Time: 45 Minutes
FROM: Matt Horn, Director of Public Works
Prepared By: Brian Nelson, Supervising Civil Engineer
SUBJECT: 2020-21 CAPITAL IMPROVEMENT PLAN - KEY PROJECT UPDATE
RECOMMENDATION
Receive and file a status report on key projects within the City's currently adopted Capital
Improvement Plan.
DISCUSSION
Background
In “normal” economic times, the City presents budget information to Council quarterly as well as
updates and adjustments to the Capital Improvement Plan (CIP) about every six months, as
follows:
1. Two Year Financial Plan. The City’s two-year financial plan creates the baseline budget for
programs and projects. For budgeting and funding purposes, this includes the majority of the
City's planned Capital Improvement Plan projects for the time period, as well as projections
about future projects in out years three through five.
2. Updates are provided quarterly and adjustments to the Financial Plan occur at about
six-month increments.
a. First quarter reporting providing a status update on revenues and expenditures.
b. Mid-Year (1st fiscal year): This work occurs six months after the two-year financial
plan is approved and typically used to provide status updates on revenues and
expenditures.
c. Third quarter report providing a status update on revenues and expenditures.
d. Budget Supplement: This work occurs 12 months after the two-year financial plan is
approved and typically is used to make small corrections to budgets based upon revenue
and expenditure information and appropriate the next fiscal year funding for both
Operating and Capital Improvement Plan budgets.
e. First quarter report (2nd fiscal year) providing a status update on revenue and
expenditures.
f. Mid-Year (2nd fiscal year): This work occurs 18 months after the two-year financial
plan is approved and typically used to provide status updates on revenues and
expenditures.
g. Third quarter report providing a status update on revenue and expenditures.
Item 15
Capital Budget Process and Delivery Process
The process the City uses to define, review, select and fund CIP Projects is robust and always
demands tradeoffs. The Council defines policy objectives that are informed by Community and
Advisory Body input. Staff define project scope and estimate budget informed by Major City
Goals, General Plan, Specific Plans, Private Development project needs, Maintenance and
Service Program Input, and Best Management Practices for Asset Management. These p rojects
are grouped together and presented to the Revenue Enhancement Oversight Committee, Planning
Commission, and Council for review and approval.
Once the CIP is approved, project management and design oversight responsibilities are assigned
to either the CIP Engineering Program, Utilities Engineering and Project Management Staff,
Transportation Planning and Engineering, or one of the City’s maintenance programs including
Fleet Maintenance Services, Facilities Maintenance Services, and Parks Maintenance Program.
Once the projects’ scope, schedule, and budget have been defined and the construction
documents have been prepared, the project will be presented to the City Manager or Council for
review and approval prior to advertisement for construction bids. The lowest cost responsive bid
submitted by a responsible contractor is selected for contract award consideration by either the
City Manager or Council. If the contract is awarded, the construction management and
inspection duties is typically overseen by either the City’s CIP Engineering Program or Utilities
Engineering and Project Management staff.
After the project work is completed, the day to day oversight of the work is then assigned to the
appropriate maintenance program and the improvements are available for community use and
benefit.
Capital Budget for 2020-21
The most recent two-year Financial Plan, the 2019-21 Financial Plan, was adopted in June 2019.
Since that time, the Capital Budget has required larger budget and scope adjustments than
typical for multiple reasons including dramatic cost of construction escalation, the economic
impacts related to COVID-19 , prioritization of funds to respond to the Fiscal Health
Contingency Plan and reduction in expenditures to address the City’s reduced revenues
associated with the impacts of COVID-19.
This revised CIP was completed in time to be paired up with the 2020-21 Budget Supplement,
requiring the City to focus on one single goal (Meta Goal) of Economic Recovery and
Resiliency. With the adoption of the 2020-21 Budget Supplement Council had to balance
community needs and address emergent issues by:
• Deferring 45 Capital Improvement Plan projects including Laguna Lake Dredging,
Farmers Market Safety Bollards, and various Fleet Replacements. See attachment A for
listing of deferred projects by fund.
• Providing funding for newly identified community priorities focused on the META
Goal particularly economic recovery. Projects included installation of Downtown
parklets, installation of banner arms and signage, enhanced Downtown Cleaning, multi-
space on-street parking pay stations, and funding for quick build active transportation
improvements. See attachment B for listing of newly funded projects.
Item 15
• Continuing to advance projects to further address infrastructure to support housing,
transportation, and sustainability. Pedestrian Safety Improvements were prioritized, and
installation of the Orcutt Road at Tank Farm Roundabout was fully funded that both
addresses housing development and improves safety and traffic congestion.
Project Status Review
With the 2020-21 Budget Supplement, the City continues to advance 243 CIP Projects with an
estimated value of $207.8M. While this valuation is greatly increased by two of the largest
valued CIP Projects in the City’s history at the Water Resource Recovery Facility and Water
Treatment Plant, the 2020-21 Budget Supplement CIP continues the City’s investment into
community infrastructure and services.
The City continues to focus funding and staff resources on Capital Improvement Plan projects.
Many are funded by the General Fund, but most are funded by grants, impact fee funds and
service fees for water and sewer.
Item 15
Attachment C includes a presentation that staff will provide to Council as a focused update on
the following 2020-21 CIP projects:
Private Development Projects
City Public Works inspection staff oversee private development projects throughout the City to
ensure compliance with the approved Public Improvement Plans (PIPs) and conditions of
approval, City Engineering Standards, and Encroachment Permit requirements including traffic
control and safety within the public Right of Way. Each public and private project must have an
approved encroachment permit for work to begin. Schedules for private work are determined by
the developer and generally correlate to the extent of work required; project inspections for work
impacting existing or new public facilities are routinely coordinated with City inspection staff.
Currently, there are 373 active encroachment permits for work with the City, covering the
following permitted work classifications:
• Capital Improvement Projects (Public Projects)
• Easements
• Minor Encroachments
• Parking Meter Bags1
• Public Art
• Right of Way
• Sidewalk Café
• Utility Company (So. Cal Gas, PG&E, etc.)
• Subdivision Work
1 The management of temporary parking stalls that are reserved for construction vehicles or activities and is
managed by Public Works Parking Services Division.
Item 15
Subdivision Work constitutes are large share of private work and subsequent staff time to
monitor the work. The presentation will provide a brief status update on some of the larger
development work, including:
1. Avila Ranch
2. San Luis Ranch
3. Righetti Ranch
4. Westcreek
Potential Funding to Address Unmet Community Priorities and Infrastructure Needs
There is significant and consistent focus and effort made by staff daily to maintain and enhance
the City’s infrastructure. Adopted Council goals and policies guide the prioritization of this
work. Many projects are years in the making - from identification of need to development of
complex engineered plans to actual construction.
Given the age of our City, the bold strategies of the 2020-21 META goal focused on achieving
economic recovery, affordable housing, fiscal sustainability and responsibility, sustainable
transportation, climate action and downtown vitality and climate sustainability will continue to
require dedicated staff resources and funding to achieve meaningful progress. During COVID-
19 the financial gap between community priorities and available funding have grown. In
response to this and other current and future City needs, on July 21st Council placed Measure G-
20 San Luis Obispo’s Community Services and Investment Measure on the November ballot.
Measure G-20 as proposed is a locally controlled extension of the existing sales tax and expected
generate approximately $21 million annual to support San Luis Obispo’s community needs with
a specific focus on resources to maintain the quality of life and by maintaining and building
infrastructure.
Previous Council or Advisory Body Action
On June 4, 2019 Council adopted the 2019-21 Financial plan. On November 19, 2019 Council
received an update on the quarterly financial plan position. On June 2, 2020 Council adopted the
2020-21 Budget Supplement.
Policy Context
There is no policy requiring Council to be updated on the status of key projects although it is a
best practice.
Public Engagement
Public engagement was done during the initial identification of these projects and they were
included in previous financial plan public outreach. Individual projects within this update may
have received enhanced public outreach which is typically completed for parks projects or
roadway projects.
CONCURRENCE
The recommended actions are supported by the Administration, Community Development, Parks
and Recreation, Public Works and Utilities departments.
Item 15
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: 2019-21
Funding Identified: Yes
Funding Sources
Total Budget
Available
Total Budget
Spent
Remaining
Balance
Annual
Ongoing Cost
General Fund: $0
Cost Recovery:
Total $0
There are no financial impacts associated with Council receiving this update. The City’s capital
improvement budget is adopted with the Financial Plan and the funding appropriated
accordingly. Once appropriated, the funding remains in the project account until used or the City
Council takes action to defund the project.
Attachments:
a - Deferred Projects List from the 2020-21 Budget Supplement
b - New Project List from the 2020-21 Budget Supplement
c - COUNCIL READING FILE - Project Review Presentation
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation (Non LRM)
ID# Category Adopted Budget
Current
Costs
Remaining
Budget
1 Defer: No Futher Action this Fiscal Year ‐ Defund 1,887,619$ $114,235 1,773,384$
2 Farmer's Market Bollards (91673)917,000$ $7,192 909,808$
3 Tait Radio System Bknd Up (91691)300,000$ $0 300,000$
4 Green Fleet Vehicle Charging Stations 2017 (91565)105,000$ $0 105,000$
5 Council Hearing Room Tenant Improvements 100,000$ $0 100,000$
6 Major Facilities Maintenance ‐ Annual Asset Maintenance Account 76,790$ 76,790$
7 Bob Jones Prefumo Creek (91374)121,929$ $47,049 74,880$
8 Police Department & Fire Station 3 Painting (91646)71,000$ $0 71,000$
9 Signs Management ‐ Cartegraph (91588)65,000$ $0 65,000$
10 Mission P laza Enhancements ‐ Hydration Stations
11 Hydration Station Installation 55,044$ $21,697 33,346$
12 City to Sea Greenway (90495)25,856$ $6,500 19,356$
13 Corporation Yard Tenant Improvement (91643)50,000$ $31,797 18,204$
14 LOVR Spur of the Bob Jones Bike Path ‐$ $0 ‐$
15 Completed: No Further Action this Fiscal Year ‐ Defund 794,555$ $690,520 104,035$
16 Street Heavy Duty Dump Truck (91589)38,936$ $702 38,234$
17 Rosa Butron Adobe Painting 2017 (91571)20,390$ $6,278 14,112$
18 IT Replacements ‐ Annual Asset Maintenance Account
19 Network Switching Infrastructure Equipment 90,000$ $78,758 11,242$
20 ECC Computer Equipment Replacement (91328) 34,276$ $25,682 8,593$
21 Storage Capacity Repl (91587)22,249$ $14,927 7,321$
22 El Capitan Pedestrian Bridge Replacement 17,645$ $11,524 6,121$
23 Maintenance Work ‐ JOC (91446) 5,360$ $0 5,360$
24 Directional Signs 2016 (90740)46,567$ $42,821 3,746$
25 Ambulance Van (91409)2,760$ $0 2,760$
26 Police Patrol Utility Vehicle (91671)52,300$ $50,276 2,024$
27 Fire Rescue UTV (91622)10,458$ $8,501 1,957$
28 Police Interceptor SUV (91590)2,300$ $395 1,905$
29 Portable Restroom Trailer (91703)315$ $0 315$
30 Utility Crt with Dump Bed (91708)1,200$ $1,005 195$
31 Facilities Master Plan (91502)10,650$ $10,500 150$
Grand Total 2,682,174$ $804,755 1,877,419$
Capital Improvement Plan
129
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
Table F8
ID# Row Labels
Sum of Current
Budget Cost
Sum of Cost
Including
Commitments
Sum of Available
Balance
1 Defer: No Futher Action this Fiscal Year ‐ Defund 3,695,293$ $674,983 3,020,310$
2 Parks Major Maintenance ‐ Annual Asset Maintenance Account 732,462$ $34,904 697,558$
3 Carryover Funds 92,462$ $31,141 61,320$
4 Parks Play Surfacing 30,000$ 30,000$
5 Water Stations and Supply Lines 40,000$ 40,000$
6 Sinsheimer Irrigation & Drainage (91658)570,000$ $0 570,000$
7 Costs to Date ‐$ $3,763 (3,763)$
8 Laguna Lake Dredging and Sediment Management Project Implementation 531,534$ $42,637 488,897$
9 Fleet Replacements ‐ Annual Asset Maintenance 450,000$ 450,000$
10 Police Patrol Truck 75,000$ 75,000$
11 Streets Maintenance Medium Duty Truck with Hooklift Bed 135,000$ 135,000$
12 Streets Maintenance Medium Duty Truck with Utility Bed and Crane 120,000$ 120,000$
13 Stormwater Hydrocleaner 120,000$ 120,000$
14 Bob Jones Calle Joaquin to Ocn (91694)216,000$ $0 216,000$
15 Open Space Acquisition 772,094$ $565,282 206,812$
16 Body Slide In Patcher (91700)205,000$ $0 205,000$
17 Playground Equipment Replacement ‐ Annual Asset Maintenance Account 160,000$ $0 160,000$
18 Emerson Park Fitness Equipment 100,000$ 100,000$
19 Meadow Park Par Course 20,000$ 20,000$
20 Vista Lago Mini Park Playground 40,000$ 40,000$
21 Downtown Renewal ‐ Broad Street 138,950$ $0 138,950$
22 Broad Street ‐ West Side ‐ Higuera to Marsh 138,950$ $0 138,950$
23 Meadow Park Pathways Maintenance 137,090$ $13,540 123,550$
24 Traffic Safety Implementation 100,000$ $0 100,000$
25 Meadow Park Irrigation (91680)90,000$ $0 90,000$
26 Street Lights ‐ Annual Asset Maintenance Account 75,000$ $0 75,000$
27 2015 Traffic Safety Report Improvements (91607)30,000$ 30,000$
28 Major Facilities Maintenance ‐ Annual Asset Maintenance Account 19,663$ 19,663$
29 ADA Transition Plan Implementation 19,663$ 19,663$
30 Elsfor Park Fence (91678)15,000$ $0 15,000$
31 Police Evidence Storage Bldg (91645)5,000$ $0 5,000$
32 Police Department & Fire Station 3 Painting (91646)17,500$ $18,620 (1,120)$
33 Completed: No Further Action this Fiscal Year ‐ Defund 3,316,316$ $3,116,478 199,837$
34 Jack House Facility Shell (91686)57,500$ $15,000 42,500$
35 City Hall Chiller Replacement 2017 (91568)224,924$ $202,884 22,040$
36 Meadow Park Pedestrian Bridges Replacement Project 271,164$ $249,646 21,518$
37 Swim Center Re ‐plaster Therapy Pool (91657) 151,003$ $132,176 18,827$
38 Portable Restroom Trailer (91703)15,874$ $0 15,874$
39 Mission Plaza Railing Upgrade 2019 35,000$ $19,836 15,164$
40 Fire EPCR Records Management (91367)16,730$ $1,796 14,934$
41 EDC DataAire Replacement 157,280$ $142,492 14,788$
42 Police CAD Hardware (91401)15,826$ $4,595 11,232$
43 PG&E Relocation for Meadow Park Pedestrian Bridge 66,000$ $57,417 8,583$
44 Major Facilities Maintenance ‐ Annual Asset Maintenance Account
45 Swim Center Therapy Pool Chemical Pumps 8,000$ 8,000$
46 ECC Blade Computers (91689)4,317$ $0 4,317$
47 RRST Pepper to Train Station (91695)30,000$ $27,852 2,148$
48 Emergency Repair ‐ 54 Highland 15,519$ $14,770 749$
49 Fire Trainining Pickup (91598)6,978$ $6,606 372$
50 Ped & Bike Path Maintenance ‐ Annual Asset Maintenance Account 14,226$ $14,033 193$
51 Ambulance Van (91409)128$ $0 128$
52 Utility Crt with Dump Bed (91707)23,000$ $22,934 66$
53 Railroad District Boardwalk Replacement 1,214$ $1,165 49$
54 Utility Crt with Dump Bed (91708)33,000$ $33,029 (29)$
55 Police Interceptor SUV (91590)55,000$ $56,615 (1,615)$
Grand Total 7,011,609$ $3,791,462 3,220,147$
Capital Improvement Plan
136
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
The FY2019‐21 Financial Plan identified a few CIP projects to be funded through debt financing, backed by
the Citywide TIF program. Because the City ultimately did not choose to proceed with funding these
projects through debt financing, the following project funding allocations were never realized and are
therefore recommended for de‐appropriation.
Remaining Balance by TIF Fund
The following table summarizes the starting balance, current CIP obligations per the FY2020‐21
Supplemental Budget, current developer reimbursement obligations expected in FY2020‐21, and the
remaining fund balance for the Citywide TIF and each subarea TIF. Note that this summary conservatively
assumes includes no new TIF revenues; thus, the remaining balance shown below is a conservative
projection.
ID# Category Adopted Budget
Current
Costs
Remaining
Budget
1 Completed: No Further Actio n this Fiscal Year ‐ Defund 87,148$ $65,773 21,375$
2 Transportatio n Impact Fee Fund ‐ CW 87,148$ $65,773 21,375$
3 2018 Transportation Monitoring (91420)70,878$ $60,445 10,433$
4 WRRF Modeling (91745)8,000$ $393 7,607$
5 Traffic Volume Counts 8,270$ $4,935 3,335$
6 Defer: No Futher Action this Fiscal Year ‐ Defund 2,437,419$ $4,549 2,432,870$
7 Transportation Impact Fee Fund ‐ AASP 45,000$ $0 45,000$
8 Santa Fe at Tank Farm 2018 (91378)45,000$ $0 45,000$
9 Transportatio n Impact Fee Fund ‐ CW 2,392,419$ $4,549 2,387,870$
10 Prado Road Interchange 1,350,000$ $4,549 1,345,451$
11 LOVR Spur of the Bob Jones Bike Path 550,000$ $0 550,000$
12 Prado Road Bridge Widening 342,419$ $0 342,419$
13 Penny Lane Bridge at Union Pacific Railroad 150,000$ $0 150,000$
Grand Total 2,524,566$ 70,322$ 2,454,244$
CW = Citywide Transportation Impact Fee Fund
AASP = Airport Area Specific Plan Transportation Impact Fee Fund
MASP = Margarita Area Specific Plan Transportation Impact Fee Fund
ID# Category Fund
Adopted
Budget
Current
Costs
Remaining
Budget
1 6,360,000$ $0 6,360,000$
2 Prado Road Bridge Widening CW TIF (Debt Financed) 4,060,000$ $0 4,060,000$
3 California Taft Roundabout CW TIF (Debt Financed)2,300,000$ $0 2,300,000$
Grand Total 6,360,000$ $0 6,360,000$
CW = Citywide Transportation Impact Fee Fund
Defer: No Futher Action this Fiscal Year ‐ Defund
Capital Improvement Plan
155
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
ID# Category
Adopted
Budget
Actual
Cost
Remaining
Budget
1 Defer: No Futher Action this Fiscal Year ‐ Defund 1,372,500$ $114,248 1,258,252$
2 Parking Acquisition & Lease 500,000$ $7,000 493,000$
3 Parking Meter Upgrades to Credit Card/Mobile Pay 315,000$ $0 315,000$
4 Parking Meter Replacements of Existing C redit Card Meters 200,000$ $0 200,000$
5 Parking Small Capital Miscellaneous CIP Projects 100,000$ $0 100,000$
6 Telemetry Communications Upgrades ‐ Wayfinding 57,500$ $0 57,500$
7 Managed Parking Expansion (meters, Residential Permit Districts, Mobile 50,000$ $0 50,000$
8 Green Fleet Vehicle Charging Stations 2017 (91565)150,000$ $107,248 42,752$
9 Completed: No Further Action this Fiscal Year ‐ Defund 879,507$ $24,615 854,892$
10 Marsh Parking Structure Maintenance (91605)575,000$ $1,040 573,960$
11 Vehicle License Plate Recognition (91382)145,000$ $268 144,732$
12 Marsh Street Garage Improvements 2016 (91381)73,271$ $0 73,271$
13 Parking Structure Assessment (91380)76,667$ $16,432 60,235$
14 IT Replacements ‐ Annual Asset Maintenance Account
15 Actual Costs to Date ‐$ $6,875 (6,875)$
16 Firewall Replacement 5,033$ 5,033$
17 Virtual Private Network Replace 3,420$ 3,420$
18 Network Switching Infrastructure Equipment 1,116$ 1,116$
Grand Total 2,252,007$ $138,863 2,113,144$
Capital Improvement Plan
139
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
ID# Category
Adopted
Budget
Current
Costs
Remainin
g Budget
1
Completed: No Further Acti on this Fiscal Year ‐
Defund 104,637$ $1,964 102,673$
2
Bus Shelter Replacement (91253) ‐ Partial
Closeout 101,621$ $0 101,621$
3
IT Replacements ‐ Annual Asset Maintenance
Account
4 Costs to Date ‐$ $1,964 (1,964)$
5 Firewall Replacement 1,438$ 1,438$
6 Virtual P rivate N etwork Replace 977$ 977$
7 Network Switching Infrastructure Equipment 601$ 601$
Grand Total 104,637$ $1,964 102,673$
Capital Improvement Plan
142
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
ID# Category
Adopted
Budget
Current
Costs
Remaining
Budget
1 Defer: No Futher Action this Fiscal Year ‐ Defund 1,224,558$ $0 1,224,558$
2 Reservoir No 2 Replacement 949,558$ $0 949,558$
3 Buchon / Santa Rosa Intersection Improvements 150,000$ $0 150,000$
4 Water Utility Trench Repair (91147) 100,000$ $0 100,000$
5 Mid ‐Higuera Bypass 25,000$ $0 25,000$
6 Completed: No Further Action this Fiscal Year ‐ Defund 2,147,451$ $1,935,529 211,922$
7 Water Distribution System Improvements (90227)131,880$ ‐$302 132,182$
8 WTP Water Meter Replacement (91734)70,000$ $22,454 47,546$
9
Street Reconstruction and Resurfacing ‐ Roadway Sealing
2020 58,500$ $46,598 11,902$
10 Water Dist. Pickup No. 0621 Replacement 35,000$ $27,458 7,542$
11 IT Replacements ‐ Annual A sset Maintenance A ccount
12 Costs to Date ‐$ $16,207 (16,207)$
13 Firewall Replacement 11,864$ 11,864$
14 Virtual Private Network Replace 8,063$ 8,063$
15 Network Switching Infrastructure Equipment 3,090$ 3,090$
16 Compact Pickup (91603)7,226$ $2,156 5,070$
17 Compact Pickup (91604)44,000$ $43,129 871$
Grand Total 3,372,009$ $1,935,529 1,436,480$
Capital Improvement Plan
146
Item 15
Listing of Deferred and Completed Projects for De‐Appropriation
ID# Category
Adopted
Budget
Current
Costs
Remainin
g Budget
1 Completed: No Further Action this Fiscal Year ‐ Defund 5,333,245$ $4,530,718 802,527$
2 Osos/Leff/SantaBarbara ‐ 2017 (91438) 1,260,480$ $978,829 281,651$
3 Sewer Lift Station Repairs ‐ Laguna Lake (91628) 245,000$ $77,608 167,392$
4 Sewer Lining Project 2016 (91421) 584,882$ $486,719 98,163$
5 PSPS Emergency Power 200,000$ $117,493 82,507$
6 Foothill Pipe Burst (91640) 303,600$ $252,248 51,352$
7 Walnut, Morro, Albert, Mill, Santa Rosa CIP (91641) 245,457$ $198,739 46,718$
8 Stafford, Taft, Kentucky Sewer Line Replacement (91265) 1,243,457$ $1,203,885 39,571$
9 WRRF Auto Transfer Switch (91725)32,470$ $17,671 14,799$
10 WRRF Drain Gates (91727)30,000$ $18,588 11,412$
11 IT Replacements ‐ Annual Asset Maintenance Account
12 Costs to Date ‐$ $16,697 (16,697)$
13 Firewall Replacement 12,223$ 12,223$
14 Virtual Private Network Replace 8,307$ 8,307$
15 Network Switching Infrastructure Equipment 5,129$ 5,129$
Grand Total 5,333,245$ $4,530,718 802,527$
Capital Improvement Plan
150
Item 15
GENERAL FUND
Staff have identified additional funding for projects necessary to complete within the next fiscal year. A
portion of the defunded project budgets are recommended to be transferred to those projects.
Each subsection is organized by fund and identifies new or existing projects recommended for funding. A
brief description of the Purpose and Need is provided.
Fund Summary Table and New/Supplemental Project Funding
General Funds include Capital Outlay Fund, Fleet Replacement Fund, Information Technology Fund, and
the Major Facility Replacement Fund.
Table F‐4
The following table shows new and supplemental project funding requests for FY20/21.
Table F‐5
ID# Assessment Category
Adopted
Budget
Actual
Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 5,269,516$ $2,969,852 2,299,664$
2 Proceed: Continue Planning/Design Only 1,229,965$ $341,141 888,824$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 916,663$ $354,632 562,030$
4 Proceed Total 3,750,518$
5 Defer: No Futher Action this Fiscal Year ‐ Defund 1,887,619$ $114,235 1,773,384$
6 Completed: No Further Action this Fiscal Year ‐ Defund 794,555$ $690,520 104,035$
7 Defund Total 1,877,419$
8 New and Supplemental Project Funding1 (596,000)$
9 Total Reductions 1,281,419$
1See next table for New a nd Supplemental Funding for FY20/21
ID# New and Supplemental Project Funding New Budget Purpose and Need
Capital Outlay Fund
1 New Project ‐ Banner Arms, Bench Arm Rests, Signs 96,000$
Project provides banner arms,
banners, arm rests and signs in the
downtown ‐ Downtown Vitality
2 Downtown Renewal ‐ Supplemental funding for Curbside Parklets 200,000$
Project will expand outdoor space
for physical distancing within the
public ROW ‐ Downtown Vitality
3
Anholm Neighborhood Greenway Plan ‐ Phase 1B & 2 ‐ Supplemental
Funding 300,000$
construction of the Class I bike path
between Foothill and Ramona.
Transfer $300k for IT Replacement
fund to Capital Outlay
New and Supplemental Project Funding 596,000$
Capital Improvement Plan
126
Item 15
LOCAL REVENUE MEASURE
Fund Summary Table and New/Supplemental Project Funding
The following table lists the total remaining budget of all projects recommended to continue, as well as the
total remaining budget for deferrable and completed projects. The total De‐Appropriation represents the
total deferrable budget, less the new funding requests. This amount can be returned to the Local Revenue
Measure Fund Balance.
Table F‐6
The following table shows new and supplemental project funding requests for FY20/21.
Table F‐7
ID# New and Supplemental Project Funding Budget Purpose and Need
Local Sales Tax Fund
1
New Project ‐ Downtown Cleaning
Equipment $150,000
Increases downtown cleanliness ‐ downtown
vitality
2
New Project ‐ Pedestrian Safety
Improvements on Monterey at Buena
Vista $30,000
Required by litigation to upgrade pedestrian
crossing near Apple Farm – safety issue.
3 New Project ‐ Replace City Hall Breaker $30,000
Project will replace an existing electrical
disconnect that no longer functions
4
New Project ‐ Pedestrian Crosswalk
Beacon on Ramona $50,000
Replace failed hardware with new system that is
easier to maintain and functional – safety issue.
5
New Project ‐ Bike/Ped Quick Build
Projects $140,000
Supports paving projects to integrate ped/bike
improvements – safety issue.
6
Supplemental Funding ‐ Fleet Services
Vehicle Lift $78,000
Replace failed in‐ground vehicle lifts for portable
lifts to address emergent life safety issues.
7
Supplemental Funding – Storm Drain
Replacement at Bullock Lane $250,000
Funding to replace storm drain infrastructure on
Bullock Lane, at critical risk of failure and
collapse
8
Supplemental Funding ‐ Swim Center
Bath House Roof Replacement $60,000
Additional funding to complete roof repairs due
to more extensive damage and costs. Reduces
future costs to City
9
Supplemental Funding ‐Neighborhood
Traffic Improvements $75,000
Supports construction of a traffic circle
improvements on Buchon to reduce vehicle
speeds and enhance neighborhood safety
ID# Assessment Category Adopted Budget Actual Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 12,528,856$ $4,025,579 8,503,278$
2 Proceed: Continue Planning/Design Only 1,897,767$ $348,211 1,549,555$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 829,756$ $323,532 506,224$
4 Proceed Total 10,559,057$
5 Defer: No Futher Action this Fiscal Year ‐ Defund 3,695,293$ $674,983 3,020,310$
6 Completed: No Further Action this Fiscal Year ‐ Defund 3,316,316$ $3,116,478 199,837$
7 Defund Total 3,220,147$
8 New and Supplemental Project Funding1 (1,850,000)$
9 Total Reductions 1,370,147$
1See next table for New and Supplemental Funding for FY20/21
Capital Improvement Plan
130
Item 15
10
Supplemental Funding ‐ Street
Reconstruction and Resurfacing $137,000
Supports ADA improvements and pavement
reconstruction on Nipomo Street from Buchon
to Leff ‐ Sustainable Transportation
11
Street Reconstruction and Resurfacing ‐
Transfer to Orcutt/Tank Farm
Roundabout Construction $(522,048)
Transfer of LRM funding to support construction
of the Orcutt/Tank Farm Roundabout. This
amount is backfilled by SB1 Funds.
12
New Project Orcutt/Tank Farm
Roundabout Construction ‐ Fund
Transfer from Street Reconstruction and
Resurfacing $522,048
Transfer of LRM from Streets R&R funding to
support construction of the Orcutt/Tank Farm
Roundabout.
13
Supplemental Funding Orcutt Tank Farm
Roundabout $550,000
Additional funding to support construction of
the Orcutt Tank Farm Roundabout
14
Supplemental Funding ‐ Tait Radio
System Upgrade $300,000
Additional funding to support radio system
upgrades used by first responders ‐ community
safety
Additional Project Funding: Budget
Transfers $1,850,000
Capital Improvement Plan
131
Item 15
ID# New and Additional Project Funding Fund New Budget Purpose and Need
TIF
Fund Transfer from Defunded Projects 2,700,000$
1 New Project ‐ Orcutt/Tank Farm
Roundabout
CW TIF 2,600,000$ Funds c onstruction of c ritical transportation
infrastructure to support new housing
2 New Project ‐ Transportation Fee
Program Update
CW TIF 100,000$ Update of AB1600 TIF Program to reflect
project cost updates and new private/public
partnership projects
New Appropriation 553,300$
3 Prado Road Bridge Widening MASP TIF 123,300$
4 Prado Road Bridge Widening AASP TIF 230,000$
5 Prado Road Interchange MASP TIF 200,000$ Funds planning and environmental review for
critical transportatio n infrastructure needed to
support housing and circulation goals
Total Additional Project Funding $3,253,300
CW = Citywide Transportation Impact Fee Fund
AASP = Airport Area Specific Plan Transportation Impact Fee Fund
MASP = Margarita Area Specific Plan Transportation Impact Fee Fund
Funds design for critical transportation
infrastructure to replace structurally deficient
Capital Improvement Plan
153
Item 15
PARKING FUND
Fund Summary Table and New/Supplemental Project Funding
The following table lists the total remaining budget of all projects recommended to continue, as well as the
total remaining budget for deferrable and completed projects. The total De‐Appropriation represents the
total deferrable budget, less the new funding requests. This amount can be returned to Fund Balance.
Table F‐9
The following table shows new and supplemental project funding requests for FY20/21.
Table F‐10
ID# Assessment Category
Adopted
Budget Actual Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 3,088,616$ $678,157 2,410,459$
2 Proceed: Continue Planning/Design Only 1,910,861$ $31,859 1,879,002$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 625$ 625$
4 Proceed Total 4,290,086$
5 Defer: No Futher Action this Fiscal Year ‐ Defund 1,372,500$ $114,248 1,258,252$
6 Completed: No Further Action this Fiscal Year ‐ Defund 879,507$ $24,615 854,892$
7 Defund Total 2,113,144$
8 New and Supplemental Projet Funding1 (516,000)$
9 Total Reductions 1,597,144$
1See next table for New and Supplemental Funding for FY20/21
ID# Additional Project Funding New Budget Purpose and Need
Parking Fund
1 New Project ‐ Multispace On‐Street Pay Stations 515,000$
meters with pay stations ‐
operating cost savings
measure
2
Major Facilities Maintenance ‐ Accelerated Funding ‐ Fleet Services
Vehicle Lift 1,000$
Replace failed in‐ground
vehicle lift ‐ safety issue
Additional Project Funding: Budget Transfers 516,000$
Capital Improvement Plan
137
Item 15
TRANSIT FUND
Fund Summary Table and New/Supplemental Project Funding
The following table list the total remaining budget of all projects recommended to continue, as well as the
total remaining budget for deferrable and completed projects. The total De‐Appropriation represents the
total deferrable budget, less the new funding requests. This amount can be returned to Fund Balance.
Table F‐11
The following table shows new project funding requests for FY20/21.
Table F‐12
ID# Assessment Category
Adopted
Budget Actual Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 988,577$ $373,058 615,519$
2 Proceed: Continue Planning/Design Only 103,472$ $42,366 61,106$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 3,500$ 3,500$
4 Proceed Total 680,125$
5 Completed: No Further Action this Fiscal Year ‐ Defund 104,637$ $1,964 102,673$
6 Defund Total 102,673$
7 New and Supplemental Project Funding1 (530,428)$
8 New Appropriation (427,755)$
1See next table for New and Supplemental Funding for FY20/21
ID# New and Supplemental Project Funding New Budget Purpose and Need
Transit Fund
1 Electric Transit Vehicle s Purchase ‐ City Matching Funds 530,428$
New and Supplemental Project Funding 530,428$
pp
Sustainable Transportation Goals.
Advances compliance with the
Innovative Clean Transit (ICT) fleet
regulations
Capital Improvement Plan
140
Item 15
WATER FUND
Fund Summary Table and New/Supplemental Project Funding
The following table list the total remaining budget of all projects recommended to continue, as well as the
total remaining budget for deferrable and completed projects. The total New Appropriation represents
appropriations necessary to fund the new and additional project funding.
Table F‐13
The following table shows new and supplemental project funding requests for FY20/21.
Table F‐14
ID# Assessment Category
Adopted
Budget Actual Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 32,591,254$ $13,030,825 19,560,429$
2 Proceed: Continue Planning/Design Only 414,796$ $82,570 332,226$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 5,900$ $0 5,900$
4 Proceed Total 19,898,555$
5 Defer: No Futher Action this Fiscal Year ‐ Defund 1,224,558$ $0 1,224,558$
6 Completed: No Further Action this Fiscal Year ‐ Defund 2,147,451$ $1,935,529 211,922$
7 Defund Total 1,436,480$
8 New and Supplemental Project Funding1 (1,887,000)$
9 New Appropriations (450,520)$
1See next table for New and Supplemental Funding for FY20/21
ID# New and Supplemental Project Funding New Budget Purpose and Need
Water Fund 1,887,000$
1 Reservoir Maintenance 780,000$
Address deferred maintenance to
water system reservoirs ‐ health /
safety and critical maintenance
issue
2
Major Facilities Maintenance ‐ Accelerated Funding ‐ Fleet
Services Vehicle Lift 7,000$
Replace failed i n‐ground vehicle
lifts for portable lifts to address
emergent life safety issues.
3
Jeffrey / Cerro Romauldo / Westmont ‐ 1000067
Supplemental Funding 1,100,000$
Address deferred maintenance of
water distribution system ‐
health / safety and critical
maintenance issue
Water Fund ‐ Prop 1B SWRCB Grant 1,996,575$
4 Groundwater Well Development Program (91506)1,996,575$
Grant funding (Prop. 1) for well
development programs ‐
community wellbeing
New and Supplemental Project Funding (Not Including Grants) 1,887,000$
Capital Improvement Plan
143
Item 15
SEWER FUND
Fund Summary Table and New/Supplemental Project Funding
The following table list the total remaining budget of all projects recommended to continue, as well as the
total remaining budget for deferrable and completed projects. The total New Appropriation represents
appropriations necessary to fund the new and additional project funding.
Table F‐15
The following table shows new and supplemental project funding requests for FY20/21.
Table F‐16
ID# Assessment Category
Adopted
Budget Actual Cost
Remaining
Budget
1 Proceed: Construct in FY2020‐21 133,368,207$ $71,826,769 61,541,439$
2 Proceed: Continue Planning/Design Only 1,166,001$ $27,702 1,138,299$
3 Hold: Shovel Ready for Future Funding/Stimulus ‐ Do Not Defund 154,275$ $148,370 5,905$
4 Proceed Total 62,685,642$
5 Completed: No Further Action this Fiscal Year ‐ Defund 5,333,245$ $4,530,718 802,527$
6 Defund Total 802,527$
7 New and Supplemental Project Funding1 (976,000)$
8 New Appropriations (173,473)$
1See next table for New and Supplemental Funding for FY20/21
ID# New and Supplemental Project Funding New Budget Purpose and Need
Sewer Fund
1 New Project ‐ Lift Station Repairs 168,000$
Critical maintenance of sewer lift
stations
2 WRRF Major Equipment Maintenance 26,000$
Additional funding for critical
maintenance
3
Major Facilities Maintenance ‐ Accelerated Funding ‐
Fleet Services Vehicle Lift 12,000$
Replace f ailed i n ‐ground v ehicle l ifts
for portable l ifts to address e mergent
life safety issues
4 New Project ‐ California Resiliency Challenge 10,000$
Local match for grant funding ‐
climate action
5
Marsh at Santa Rosa Bridge Replacement 2016 (90480) ‐
Supplemental Funding 110,000$
Supplemental funding to support
sewer siphon replacement under the
Marsh Street Bridge ‐ health and
safety
6 Foothill Sewer Lift Station 650,000$
Advanced funding to support critical
infrastructure ‐ health and safety
New and Supplemental Project Funding 976,000$
Capital Improvement Plan
147
Item 15
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Item 15
Department Name: Administration and IT
Cost Center: 208-1006
For Agenda of: October 6, 2020
Placement: Business Item
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Molly Cano, Tourism Manager
SUBJECT: 2019-20 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT
DISTRICT
RECOMMENDATION
1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and
approve the TBID Board’s annual report for FY 2019-20 (Attachment A); and
2. Adopt a Resolution of intention to levy and collect assessments within the TBID area in
fiscal year 2020-21 at the same rate as in fiscal year 2019-20 (Attachment B).
DISCUSSION
Background
In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business
improvement district as requested by the local lodging industry. The TBID was formed under the
State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets
and Highways Code and codified into the City’s Municipal Code under Chapter 12.42.
Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s
Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an
annual report (Attachment A) that outlines the past year’s efforts and how the funding was used
and to what effect.
Section 36534 further requires that after the approval of the annual report, the Council shall
adopt a resolution of intention to levy an annual assessment for that fiscal year. The resolution
also sets a public hearing in order to receive any written or oral protests against the continuation
of the TBID as required by the applicable statute.
Annual Report
On September 9, 2020, the TBID Board met in a regular monthly meeting to finalize the 2019-20
annual report for recommendation to the Council. Public noticing for the TBID Advisory Board
meeting was performed through the posting of the agenda on the City’s website by 5:00 pm on
September 4, 2020. For convenience, the agenda was also distributed to TBID constituents and
stakeholders via email. The annual report reiterates the use of the TBID funds within the defined
marketing platform that guides the strategy used to deliver on the TBID’s objective and goals.
Item 16
The annual report’s contents include:
1. Impacts Resulting from COVID-19
2. TBID Background and Advisory Body
3. 2019-20 Year by the Numbers
4. Strategic Plan Implementation and Program Approach
5. 2019-20 Summary of Activities
6. 2019-20 Financial Statement
7. Looking Ahead to 2020-21
8. Charts and Graphs showing various results
Next Steps
Should the City Council approve the annual report and adopt the resolution of intention, a public
hearing will be noticed for October 20, 2020. The public hearing will allow hoteliers to submit
comments, voice concerns, and protest the assessment.
As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the
Council has the ability to continue the proposed citywide TBID at this public hearing, unless oral
or written protests are received from City hoteliers that pay 50% or more of the proposed
assessments. In that event, the Council cannot consider continuation of the TBID in the City for
at least one year.
Noticing Schedule
Legal notices regarding the Council’s review and approval of the TBID annual report were sent
to TBID properties on Thursday, September 24, 2020. For convenience, the link to the agenda
was also distributed to TBID constituents and stakeholders via email.
Advisory Body Action
On September 9, 2020, the TBID Board approved the 2019-20 annual report for submission to
Council and recommended the continuation of the TBID for fiscal year 2020-21. (Attachment C)
Policy Context
As referenced in the City’s Municipal Code, 12.42.060 and Sections 36530 and 36533 of the
State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to
submit an annual report that outlines the past year’s efforts and how the funding was used and to
what effect.
Public Engagement
This item is on the agenda for the October 6, 2020 Council meeting and will follow all required
postings and notifications. The public may have an opportunity to comment on this item at or
before the meeting.
All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act
standards.
Item 16
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:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: TBID Fund
Total
The current unaudited year-end TBID Assessment Revenue for 2019-20 is $1,142,523 which is
$8,152 more than the revised budget amount which had been adjusted due to COVID-19.
Prior to COVID-19, the projected revenue for the TBID assessment in 2019-20 was $1.6 million
however the revenue projection was adjusted by $500,000 to $1.1 million in the Spring to
account for the fiscal impacts resulting from COVID-19. The TBID Board reduced expenses in
excess of $230,000 to account for this change, however a deficit between the adjusted revenues
and expenses remained. Due to the fiscal prudence of the TBID Board, the TBID Fund had a
fund balance of $456,000 including the TBID Fund Reserve. The anticipated deficit of $211,000
remaining from 2019-20 expenditures will be covered by the available fund balance.
In 2020-21, the TBID projected revenue is $1,253,400 and is budgeted for program costs
including staffing. Additionally, the City will retain approximately $25,000 of the assessment
revenue- roughly 2% of 2020-21 TBID Assessment Revenue - to cover the City’s administrative
costs associated with collecting, administering, and disbursing the assessment.
ALTERNATIVES
The Council may choose to not approve the report or levy the assessment. This action is not
recommended as the advisory body has fully reviewed the report and recommended the approval
to Council in order to move forward with the Public Hearing for the TBID.
Item 16
Attachments:
a - COUNCIL READING FILE - SLOTBID 2019-20 Annual Report
b - Draft Resolution of Intention
c - TBID Draft Minutes date September 9, 2020
Item 16
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO CONTINUE
THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT
DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE
ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE
PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR
2020-21
WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq.
of the Streets and Highways Code, authorizes cities to establish business improvement districts for
several purposes, one of which is promotion of tourism; and
WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism
Business Improvement District had requested the City of San Luis Obispo establish such a self-
assessment improvement district in 2008; and
WHEREAS, the San Luis Obispo Tourism Business Improvement District was established
in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and
WHEREAS, the assessment went into effect on October 1, 2008; and
WHEREAS, the City Council appointed an advisory board to provide oversight, guidance,
and recommendations regarding the use of the assessment funds; and
WHEREAS, the City Municipal Code and the Parking and Business Improvement Law
require the advisory board to prepare and submit an annual report stating proposed changes,
improvements and activities for the fiscal year; and
WHEREAS, an annual report was prepared pursuant to Section 36533 of the Streets and
Highway Code; and
WHEREAS, notices regarding the approval of the annual report were sent on September
24, 2020 to all assessed properties.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
a) That the Tourism Business Improvement District Annual Report for fiscal year 2019-
20 as filed by the advisory body is hereby approved.
b) The San Luis Obispo City Council proposes to continue the established Tourism
Business Improvement District in the City of San Luis Obispo in accordance with City
Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections
36500 et seq. (Parking and Business Improvement Law of 1989).
Item 16
Resolution No. _____ (2020 Series) Page 2
R ______
c) The assessment levied by the Tourism Business Improvement District shall be used to
promote lodging at the hotels within the district and administer a marketing program
that increases overnight hotel stays pursuant to the set goals.
d) The assessment will be levied and allocated by the City of San Luis Obispo.
e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San
Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of
any structure, which is occupied or intended or designed for occupancy by transients
for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or
house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment
house, dormitory, public or private club, mobile home or house trailer at a fixed
location, or other similar structure or portion thereof.
f) The assessment shall be based on two percent (2%) of gross room rent.
g) New hotels shall not be exempt from immediate assessment.
h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the
Parking and Business Improvement Law of 1989, section 36535 of the Streets and
Highways Code, is to allow for comments on the Tourism Business Improvement
District and proposed assessment, and is hereby set for 6:00 P.M., Tuesday, October
20, 2020, before the City Council of San Luis Obispo via teleconference.
i) At the public hearing, the testimony of all interested persons for or against the
continuation of the Tourism Business Improvement District, the boundaries of the
Tourism Business Improvement District, or the furnishing of specified types of
improvements or activities will be heard.
j) Any protest against the continuation of the Tourism Business Improvement District and
the levying of the assessment, or any aspect thereof, may be made in writing. Any
written protest shall contain a description of the business in which the person signing
the protest is not shown on the official records of the City of San Luis Obispo as the
owner of the business, then the protest shall contain or be accompanied by written
evidence that the person is the owner of the authorized representative of the business.
Any protest as to the regularity or evidence of the proceedings shall be in writing and
clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street,
San Luis Obispo, CA 93401. A protest may be withdrawn at any time before the
conclusion of the public hearing.
k) If, at the conclusion of the public hearing, there are of record, written protests by the
owners of businesses within the proposed Tourism Business Improvement District that
will pay fifty percent (50%) or more of the total assessments of the entire Tourism
Business Improvement District, no further proceedings to continue the Tourism
Business Improvement District shall occur. New proceedings to form the Tourism
Business Improvement District shall not be undertaken again for a period of at least one
(1) year from the date of the finding. If the majority of written protests are only as to
an improvement or activity proposed, then that type of improvement or activity shall
not be included in the Tourism Improvement District.
Item 16
Resolution No. _____ (2020 Series) Page 3
R ______
BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide
notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business
Improvement Law of 1989, section 36534, subpart (a)(7) of the Streets and Highways Code, to
wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to
be published once in a newspaper of general circulation in the City no less than seven days before
the public hearing.
Upon motion of Council Member ______________, seconded by Council Member
_____________, 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, on _____________________.
______________________________
Teresa Purrington
City Clerk
Item 16
DRAFT Minutes – Tourism Business Improvement District Board Meeting of 09/09/2020 Pg. 1
Minutes - DRAFT
TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD
Wednesday, September 9, 2020
Regular Teleconference Meeting of the Tourism Business Improvement District Board
CALL TO ORDER
The regular teleconference meeting of the San Luis Obispo Tourism Business Improvement District Board
was called to order on September 9, 2020 at 10:03 a.m. held via GoToWebinar by Chair John Conner.
ROLL CALL
Present: Chair John Conner and members LeBren Young-Harris, Clint Pearce, Pragna Patel-Mueller,
and John Byrns
Absent: Natalie Ward
Staff: Tourism Manager Molly Cano and Tourism Coordinator Chantal Burns
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
None.
--End of Public Comment--
CONSENT ITEMS
ACTION: MOTION BY COMMITTEE MEMBER PEARCE SECONDED BY COMMITTEE MEMBER
HARRIS, CARRIED 5-0-1, TO APPROVE THE CONSENT AGENDA ITEMS 1 THRU 7.
C.1 Minutes of Meeting on Wednesday, August 12, 2020
C.2 Smith Travel Report
C.3 Transient Occupancy Tax (TOT) Report
C.4 Chamber Public Relations Monthly Report
C.5 Chamber Visitor Center Monthly Report
C.6 Noble Studios & DCI Marketing Monthly Report
C.7 Notice of Unscheduled Vacancy
Public Comment
None.
--End of Public Comment--
Item 16
DRAFT Minutes – Tourism Business Improvement District Board Meeting of 09/09/2020 Pg. 2
PRESENTATIONS
1. New Board Member Introductions
New member John Byrns, the General Manager for the Kinney introduced himself to the Board while other
board members introduced themselves. New members Natalie Ward and upcoming new member David
Smith will join the October meeting.
BUSINESS ITEMS
1. 2019-20 TBID Annual Report
Tourism Manager Cano reviewed the draft FY 2019-20 annual report while highlighting the impacts of
COVID-19 on the TBID and major accomplishments for the fiscal year. Cano then presented the annual
report video. Board members did not have any edits or feedback. The action taken by the TBID Board
recommended the adoption of the 2019-20 annual report and thus endorsed the continuation of the district
for fiscal year 2020-21as communicated through the approved recommended scheduling of the annual
public hearing on October 20, 2020.
Public Comments:
None
---End of Public Comments---
ACTION: MOTION BY COMMITTEE MEMBER PEARCE, SECONDED BY COMMITTEE
MEMBER BYRNS, CARRIED 5-0-1, to approve the 2019-20 SLO TBID Annual Report for
recommendation to City Council.
2. Appointment of the TBID Board Vice Chairperson
Board members reviewed the SLO TBID Bylaws regarding the Vice Chairperson positioned and both
members Patel-Mueller and Pearce expressed interest in the position.
Public Comments:
None
---End of Public Comments---
ACTION: MOTION BY COMMITTEE MEMBER HARRIS, SECONDED BY COMMITTEE
MEMBER BYRNS, CARRIED 4-1-1 (Patel-Mueller abstained), to nominate member Pearce as the current
Vice Chairperson.
3. 2020-21 Board Liaison & Committee Assignments
Chair Conner recommended to the remaining members the below committee assignments for the 2020-21
FY and will fill in on either committee as needed. Board members had no edits or discussion to the
recommended committee assignments or liaison assignments and will move forward with the presented.
TBID Marketing Committee: LeBren Harris, Clint Pearce and Natalie Ward
TBID Management Committee: Pragna Patel-Mueller, John Byrns and new incoming board member
Committee members discussed meeting in person only for the Marketing Committee meetings at physically
distanced meeting spaces.
Public Comments:
None.
---End of Public Comments---
Item 16
DRAFT Minutes – Tourism Business Improvement District Board Meeting of 09/09/2020 Pg. 3
No action was taken on this item.
TBID LIAISON REPORTS AND COMMUNICATION
1. HOTELIER UPDATE – Liaison Reports
a. Member Harris – New property Town Place Suites is planned to open in February 2021
b. Member Byrns – The Kinney has reopened their restaurant and restarted weekly trivia outdoors
c. Tourism Manager Cano – The Apple Farm is under new management; Blu Hotel Investors and Matt
Wilkins, a previous board member, is the new general manager for La Cuesta Inn and has express
interest in a March 2021 board set.
2. MARKETING COMMITTEE UPDATE – Tourism Manager Cano highlighted the social strategy that was
presented by Noble Studios and DCI and was approved by committee members.
3. MANAGEMENT COMMITTEE UPDATE – Chair Conner highlighted the meeting discussions on budget
and CHLA.
4. PCC UPDATE – Chair Conner highlighted the new GIA program that was discussed and reported in the August
12, 2020 minutes.
5. VISIT SLO CAL UPDATE – Liaison Reports by member Pearce and Tourism Manager Cano:
a. Advocacy work for tourism with the County and State mandates.
b. Working with different groups for forecasting data
c. Marketing Committee reviewed marketing, sales and PR activities including Go West Summit leads
web traffic numbers and launching paid search with Visit Ca.
6. TOURISM PROGRAM UPDATE – Staff Report from Tourism Manager Cano and Tourism Coordinator
Burns
a. David Smith from Hotel SLO is scheduled to be appointed by City Council in September and will join
the TBID Board starting in October
b. #SLOready Campaign –
i. Campaign development through video and still photography went well
ii. #SLOready Challenge was a success with 58 qualified entries
ADJOURNMENT
The meeting was adjourned at 11:10 a.m. The next Tourism Business Improvement District Board meeting
is scheduled for Wednesday, October 14, 2020 at 10:00 a.m. held remotely and via teleconference.
APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/XXXX
Item 16