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01-21-2020 Agenda Packet - Closed Session Rescheduled (2)
City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo CLOSED SESSION RESCHEDULED MEETING NOTIFICATION The following Closed Session City Council Meeting has been rescheduled: January 21, 2020 NOTICE is hereby given that the Closed Session Meeting of the City Council scheduled for Tuesday, January 21, 2020 at 5:00 p.m. has been rescheduled for Tuesday, February 4, 2020 at 5:00 p.m.. Page intentionally left blank. Tuesday, January 21, 2020 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Vice Mayor Aaron Gomez PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. CONSENT AGENDA Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. 1.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. San Luis Obispo City Council Agenda January 21, 2020 Page 2 2.2019 OPEN SPACE MAINTENANCE PLAN PROGRESS REPORT (AVAKIAN/BERGAM/CARSCADEN) Recommendation: Receive and file the Parks and Recreation Department’s Open Space Maintenance Plan 2019 Progress Report. 3.2019 ANNUAL PROGRESS REPORT FOR THE 2020 PARKS AND RECREATION STRATEGIC PLAN (AVAKIAN/BERGAM) Recommendation: Receive and file the 2019 Annual Progress Report for the 2020 Parks and Recreation Strategic Plan. 4.ADOPTION OF THE CITY OF SAN LUIS OBISPO TRANSIT’S FEDERAL FISCAL YEAR 2021-23 TITLE VI PLAN (STANKWYCK/ANGUIANO) Recommendation: Adopt the City of San Luis Obispo Transit’s Federal Fiscal Year 2021-23 Title VI Plan. 5.PEOPLES’ SELF-HELP HOUSING CORPORATION’S REQUEST OF AFFORDABLE HOUSING FUNDS FOR TWO NEW AFFORDABLE HOUSING DEVELOPMENTS (CODRON/VERESCHAGIN) Recommendation: 1.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an Affordable Housing Fund award to Peoples’ Self-Help Housing Corporation for Tiburon Place in the amount of $700,000;” and 2.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an Affordable Housing Fund award to Peoples’ Self-Help Housing Corporation for Broad Street Place in the amount of $1,300,000. San Luis Obispo City Council Agenda January 21, 2020 Page 3 6. AUTHORIZATION TO PURSUE STATE AND FEDERAL AFFORDABLE HOUSING, TRANSPORTATION, AND WATER QUALITY GRANT FUNDING (CODRON/VERESCHAGIN/SCHWARTZ) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California: (1) Authorizing the City as a participating entity in the application to be submitted by Peoples’ Self-Help Housing Corporation, under the State of California’s Affordable Housing and Sustainable Communities Program; and (2) to execute certain documents with PSHHC for the submittal of the AHSC Program application; in connection with Tiburon Place, an Affordable Housing Project at 3750 Bullock Ln;” and 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing a proposal for funding to be submitted to the Department of Water Resources and designating a representative to execute the Agreement and any amendments thereto, for the Mid-Higuera Bypass Project; and 3. Authorize staff to prepare and submit State and Federal grant applications for the Pr ado Road Interchange Project and Mid-Higuera Bypass projects and authorize the City Manager or their designee to execute the grant application documentation; and 4. Authorize the City Manager to appropriate grant funds and approve a budget amendment to reflect received grant funds, if awarded. 7. REQUEST TO MODIFY CONDITIONS OF A PREVIOUSLY APPROVED PROJECT AT 774 CAUDILL STREET (CITY FILE NO. MOD-0775-2019) (CODRON/BELL) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the modifications to Council Resolution No. 10734 (2016 Series) of a previously approved project at 774 Caudill Street, to reflect changes in the project design that reduces the requested density bonus from 48 percent to 47.5 percent, resulting in a reduction of the number of affordable units required for the project. The project is categorically exempt from environmental review (Class 32, Infill Development). Review as represented in the City Council Agenda Report and Attachments dated January 21, 2020 (774 Caudill, AFFH-3142-2016/MOD-0775-2019).” San Luis Obispo City Council Agenda January 21, 2020 Page 4 8. PUBLIC DISCLOSURE OF GOOD FAITH ESTIMATES AND PAY OFF OF STATE REVOLVING FUND LOAN AS CONDITIONS OF THE WATER ENERGY EFFICIENCY PROJECT UPGRADE FINANCING (FLOYD/THOMPSON) Recommendation: 1. Review the California Infrastructure and Economic Development Bank (I Bank) good faith estimate in compliance with Government Code Section 5851.2 disclosure requirements; and 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the California Infrastructure and Economic Development Bank Good Faith Estimate;” and 3. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the use of Water Fund Unreserved Working Capital to pay off the State Revolving Fund Water Reuse Project Loan.” 9. AGREEMENT WITH THE LOCAL GOVERNMENT COMMISSION TO SUPPORT THE CALTRANS CLIMATE CHANGE ADAPTATION GRANT (RESILIENT SAN LUIS OBISPO) (CODRON/MCCLISH) Recommendation: Authorize the Community Development Director to enter into an agreement with the Local Government Commission (LGC) in the amount of $147,750 to support a comprehensive vulnerability assessment and update to the Safety Element of the General Plan funded through the Caltrans Climate Change Adaptation Grant, “Resilient SLO.” 10. INTRODUCE AN ORDINANCE AMENDING CHAPTER 5.20 (TAXICABS) OF THE SAN LUIS OBISPO MUNICIPAL CODE (CANTRELL/AMOROSO) Recommendation: Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 5.20 regarding Taxicabs.” San Luis Obispo City Council Agenda January 21, 2020 Page 5 11. FY 2018-19 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600 (ELKE/HARNETT/CANO) Recommendation: 1. Review the 2018-19 Fiscal Year Report on Development Impact Fees in compliance with AB1600 annual disclosure requirements; and 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2018-19 Annual Report on Development Impact Fees, reaffirming the necessity of Development Impact Fees and make findings of Development Impact Fees, and make findings related to Impact Fee Balances and In- Lieu Fees.” 12. APPROVAL OF THE FINAL MAP FOR TRACT 3063 - PHASE 3, 3987 ORCUTT ROAD (FMAP 1959-2018) (CODRON/LACHAINE) 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 3063-Phase 3 (3987 Orcutt Road, FMAP-1959- 2018).” STUDY SESSION ITEM 13. STUDY SESSION: SUMMARY AND UPDATE OF RECENT 2019 HOUSING LEGISLATION (CODRON/VERESCHAGIN – 30 MINUTES) Recommendation: Receive an update on recently passed State housing legislation and discuss action items and anticipated impacts to ensure ongoing compliance with City of San Luis Obispo operations. San Luis Obispo City Council Agenda January 21, 2020 Page 6 PUBLIC HEARING AND BUSINESS ITEMS 14.PUBLIC HEARING: CONSIDERATION OF A PROHIBITION ON THE SALE OF FLAVORED TOBACCO AND/OR ELECTRONIC CIGARETTE PRODUCTS (HERMANN/BETZ/BAILEY – 45 MINUTES) Recommendation: 1.Receive a report on the federal, state and regional approaches prohibiting the sale of flavored tobacco and/or electronic cigarette products; and 2.Review and provide direction on the introduction of an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Health And Safety (Chapter 8.14) Tobacco Retailer License,” prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. 15.AMENDMENT TO PUBLIC ART POLICY AND PROCEDURES MANUAL (AVAKIAN/STEPHENSON – 45 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the Public Art Policy and Procedures Manual.” 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 informat ion, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) San Luis Obispo City Council Agenda January 21, 2020 Page 7 ADJOURNMENT The next Regular City Council Meeting is scheduled for February 4, 2020 at 6:00 p.m.in the Council Chamber, 990 Palm Street, San Luis Obispo, California. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100. 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. 1 am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo. State of California, under the date of February 5, 1993, Case number CV72789 : that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Patricia Horton. New Times Legals Athnin &. Pc rs on11ll•NThfG Admin/NTMG Office/BUSINESS/Puhllc Nolic<;s/Proor of Pub Proof of Publication of SAN LUIS OBISPO CITY COUNCIL NOTICE OF AVAILABILITY OF INFORMATION Notice is hereby given that on December 30, 2019, the City of Sen Luis Obispo made available to the public a draft report entitled: ANNUAL REPORT ON DEVELOPER IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2019 PURSUANT TO GOVERNMENT CODE SECTION 66001 (AB 1600) The notice is provided in accordance with Section 66006 (bl(21 of the California Government Code. The final report shell be considered by the City Council at the following public meeting: Whan: Tuesday, January 21, 2020 at 6:00 p.m. Where: City Council Chamben, 990 Palm Street. San Luis Obispo, California This notice was posted on December30,2019, at 11:00a.m. on th, City's bulletin board, located in front of City Hell, in the lobby of the Finance Department and on the City's website. For further information, interested persons mey contact Brigitte Elke, Finance Director, at (8051781-7125. The draft report may be reviewed during regular business hours at the City Clerk's Office, 990 Palm Street. San Luis Obispo, California. All interested persons are invited to attend said meeting, or to submit written communication, to express their opinion for or against the report The City Council meeting will be televised live on Charter Cable Channel 20 end live streaming on www.slocity.org. Teresa Purrington City Clerk City of San Luis Obispo January 2, 2020 -, I ) Page intentionally left blank. Department Name: Parks and Recreation Cost Center: 7005 & 7001 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Avakian, Parks and Recreation Director Prepared By: Aleah Bergam, Administrative Analyst SUBJECT: 2019 OPEN SPACE MAINTENANCE PLAN PROGRESS REPORT RECOMMENDATION Receive and file the Parks and Recreation Department’s Open Space Maintenance Plan 2019 Progress Report. DISCUSSION Background On December 15, 2015 the City Council adopted the City’s first Open Space Maintenance Plan. Adoption of the Plan identified annual progress reports to the Council; this Agenda Report transmits the Third Annual Progress Report (Attachment A). The adopted Plan is premised on the protection of the City’s natural resources including plants, animals, geologic, and historic features as well as the natural areas themselves. The Plan was written in a manner that affirms existing maintenance practices undertaken by staff, contractors, and volunteers. Those practices are all undertaken in a manner that is consistent with existing City policies, ordinances, and plans regarding open space. The Plan specifically references and integrates as its foundational policy guidance the following existing City policy documents: Conservation and Open Space Element, Conservation Guidelines for Open Space Lands of the City of San Luis Obispo, and the adopted Conservation Plans for each of the City’s open space lands. Overall planning, acquisition, and management is undertaken by the Open Space Team, which meets at least monthly and is comprised of staff from the Natural Resources Program and Parks and Recreation Ranger Service. Day-to-day maintenance, monitoring, education, and patrol is led by Ranger Service. In addition to implementing the Conservation Plans for specific open space and reserve properties, the Plan addresses existing maintenance needs in the City’s open space lands. It articulates the enhancement and maintenance of existing trailheads and trails in a sustainable manner for passive recreation purposes only. It also articulates removal of illicit materials and trails, improvements to user and natural resource safety, land restoration and stewardship projects, invasive species treatment and control, erosion control and stabilization, education of users via patrol and outreach and management of the wildland-urban interface areas. Item 2 Packet Page 1 Plan Focus The Plan is divided in three sections: 1. Maintenance Activities. Maintenance Activities have been ongoing in the City’s open space for years. They are undertaken by staff, as well as contractors and volunteers on a daily, weekly, monthly and annual basis. Maintenance activities fall into six main categories: 1) vegetation, 2) structure, 3) signage, 4) trail/road, 5) drainage, and 6) trail construction. Under each category are specific tasks. Within each of these categories are focused activities that can occur seasonally or year-round. 2. Trailhead Amenities. For the purpose of standardization, the City has three different sized trailheads (small, medium, and large) with differing degrees of enhancement at each. Currently, the City has 24 trailheads throughout its open space system. The Plan identifies for each trailhead amenity its purpose, design specification, location, standard costs, materials, installation, maintenance, and lifespan. 3. Open Space Locations. City Ranger staff presently maintain approximately 4,040 acres of open space lands comprised of 16 properties held in open space, natural reserve, ecological reserve, or agricultural reserve status. The Plan implementation items are numerous and property specific. They include activities such as: trailhead, parking, and emergency access improvements; directional and educational trail signs and kiosks; trail installation, closures, re-routes, and erosion control; invasive species control, fire protection and native habitat restoration; and bridge, fence, and open space infrastructure replacement. Open Space Maintenance Plan Progress Report Highlights The Open Space Maintenance Plan Progress Report covers predominately calendar year 2019. It provides a visual and numerical summary for Council and the community about the work efforts undertaken to address the adopted Plan (Resolution No. 10682). 2019 Open Space Maintenance and Protection efforts addressed new and deferred projects. How those efforts were accomplished is also highlighted in the report. A major accomplishment includes extensive improvements at Johnson Ranch trailhead including the construction of a new parking area, road work, and the construction of new fencing and gates. Significant trailhead improvements were also made to Bishop Peak including bog thistle fencing; construction of a new pedestrian gate and a foot bridge was constructed at Islay Hill. Of particular focus for Ranger staff this past year was fire-fuel reduction. Ranger Staff received California Conservation Corps (CCC) free labor through the Greenhouse Gas Reduction Fund. The CCC crew worked on fuel reduction projects at Bowden Ranch. This is part of ongoing efforts to reduce the fire threat at the Bowden Ranch Wildland Urban Interface (WUI). Over 75 non-native eucalyptus trees were removed in the creek corridor to support the ongoing succession planning efforts established along the creek through protecting the resident native trees and the additional mitigation plantings. Ranger staff began Plan objectives focused on the Waddell Ranch portion, including installation of trail signage, protection of resources and improvement to existing trails. Item 2 Packet Page 2 In response to prior Council discussion and direction, 2019 includes the end of year one of a two- year pilot program at the Cerro San Luis Natural Reserve that allows extended evening hours of use for passive recreational purposes along approximately 4.9 miles of trails during the winter months when daylight savings time is not in effect. Users are required to register for a free permit in order to gain access to the trails. In year one, there were 3,160 permitted trail users (307 Bikers, 2,853 Hikers). The Open Space team installed an EcoCounterTM device that uses infrared technology to track and capture use data at the Marsh Street trailhead location of Cerro San Luis. Data analysis from year one indicates that permits are highest in demand during the month of December when the light tree is set up on top of Cerro San Luis. Looking Ahead to 2020 The City’s Open Space team has planned out its priority projects for 2020. This coming year will see new trails built in the Irish Hills Natural Reserve, as well as other access improvements at Laguna Lake. In addition, the Miossi Open Space Conservation Plan was heard by Council on January 14, 2020, which includes its comprehensive study and planning for public access to this 266-acre property. Ranger staff anticipate contract fence construction to be completed along the southerly property boundary prior to the opening of Miossi Open Space for public access in 2020, as well as other standard specification open space amenities (kiosk, interpretive panels, fencing & gates, etc.). Ranger staff will complete the second year of the two-year pilot program allowing evening hours at Cerro San Luis Natural Reserve and will continue to track usage data surrounding the pilot program to report back to Council. In 2020, staff will be releasing PixOnPeaks 3.0, focusing on challenging residents to hike all trails in the Irish Hills Natural Reserve to earn a bandana with the trail map imprinted. Ranger Service staff will continue contract clean-ups of encampment waste in Open Spaces, specifically located in creeks. Previous Council or Advisory Body Action On February 5, 2019 City Council received and filed the Parks and Recreation Department’s Open Space Maintenance Plan 2018 Progress Report. On January 16, 2018 City Council received and filed the Parks and Recreation Department’s Open Space Maintenance Plan 2017 Progress Report and the Open Space Kiosk Panels. On December 6, 2017 the Parks and Recreation Commission received a presentation on the 2017 Annual Progress of the Open Space Maintenance Plan and concurred with the information provided in the report. On January 3, 2017 City Council received and filed the Parks and Recreation Department’s first Open Space Maintenance Plan 2016 Progress Report. On December 15, 2015 the City Council adopted the City’s first Open Space Maintenance Plan (Resolution No. 10682). Policy Context All activities undertaken in protecting the City’s Open Space by Ranger Services, are done in a manner consistent with all adopted City policies, ordinances, and open space and/or natural preserve conservation plans. Item 2 Packet Page 3 Public Engagement Public engagement was conducted surrounding the initial development and adoption of the Open Space Maintenance Plan. No new public engagement has been done surrounding the development of the 2019 Annual Progress Report on the Open Space Maintenance Plan. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. CONCURRENCE City Administration’s Sustainability & Natural Resources Official, Bob Hill, concurs with this report. ENVIRONMENTAL REVIEW When adopted on December 15, 2015, a Negative Declaration was approved for the Maintenance Plan. In addition, to being compliant with the Plan, all activities undertaken in protecting the City’s Open Space by the Rangers, are done in a manner consistent with all adopted City policies, ordinances, and open space and/or natural preserve conservation plans. The City’s consideration of an Open Space Maintenance Plan 2019 Progress Report is not a project within the meaning of CEQA Guidelines Section 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 Funding Identified: 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 This report on maintenance activities does not have a new fiscal impact. The activities are funded through the adopted 2019-21 Financial Plan and include the Annual Open Space Maintenance CIP and resources from the operational budget for the Ranger Service Program in the Parks and Recreation Department and Natural Resources Protection Program in Administration. Item 2 Packet Page 4 ALTERNATIVES Do not receive and file the 2019 Annual Progress Report for the Open Space Maintenance Plan and direct staff to make revisions to the Report. Attachments: a - COUNCIL READING FILE - Open Space Maintenance Plan 2019 Progress Report Item 2 Packet Page 5 Page intentionally left blank. Item 2 Packet Page 6 Department Name: Parks and Recreation Cost Center: 7001 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Avakian, Parks and Recreation Director Prepared By: Aleah Bergam, Administrative Analyst SUBJECT: 2019 ANNUAL PROGRESS REPORT FOR THE 2020 PARKS AND RECREATION STRATEGIC PLAN RECOMMENDATION Receive and file the 2019 Annual Progress Report for the 2020 Parks and Recreation Strategic Plan. DISCUSSION Background On November 1, 2016, the City Council adopted the 2020 Parks and Recreation Strategic Plan (Strategic Plan). The Strategic Plan outlines the Parks and Recreation Department’s vision, goals, and objectives for four years (2017-2020) with a primary focus on operational and programmatic priorities. 2020 Parks and Recreation Strategic Plan Focus The Strategic Plan is organized into six goals with key objectives followed by actions. It provides guidance for Parks and Recreation operations and programming in support of the Parks and Recreation mission statement: inspiring happiness by creating community through People, Parks, Programs, and Open Space. The six goals are summarized below. 1.Department is well-managed, smart and healthy: Parks and Recreation is a vibrant, thriving department with effective leadership and practices which ensure a sustainable future. 2.Staff is high performing, professional and provides excellent service: Parks and Recreation demonstrates a culture of valuing human capital and expecting the best from all team members. Staff is hired for department compatibility, is set up for professional success in serving the public, contributing to the team, and pursuing advancement in municipal government careers. 3.Programming is directed to diverse users: Parks and Recreation provides high quality programs that are responsive to industry trends and changing community needs. Programming encourages participation and builds community amongst all users. 4.Expand parks and facilities: Parks and facilities are contemporary, desirable to use, and meet the needs of diverse users. Item 3 Packet Page 7 5. Nurture Open Space: The City’s open space is preserved and protected to ensure its health and wellness as well as the community’s continued stewardship while continuing to grow the next generation of land stewards. 6. Maximize community resources and collaborations: Parks and Recreation increases its programming and positive impact, shares resources, and meets needs through community partnerships. Third Annual Progress Report on the 2020 Parks and Recreation Strategic Plan The third Annual Progress Report on the Strategic Plan is provided as Attachment A and is intended to highlight major accomplishments at the objective level. The Strategic Plan is in no way a recitation of all work completed throughout the year but rather is focused on fully completed projects, tangible results, metric based activities, and often group and community activities that were visual in nature and expressive of the diverse work undertaken by all staff in the department. Strategic Plan Subcommittees and Highlights of 2019 2019 was the third year of the Strategic Plan’s implementation and created the opportunity to continue to show progress in accomplishing many of the plan’s objectives. In addition to accomplishing objectives, 2019 included the continual brainstorming and development of new and innovative ideas and plans to accomplish the goals set forth in the Strategic Plan. Staff continued to work collaboratively within their subcommittees to make progress towards each goal objective, in addition to beginning to collaborate with other subcommittees on accomplishing shared goals. The seven Strategic Plan subcommittee groups consisted of 32 full and part-time staff from various divisions throughout the Parks and Recreation. Throughout the year, these subcommittee groups met on a regular monthly basis to work towards accomplishing objectives, as well as bi-annually at the Parks and Recreation Summit events to share information about their progress, receive peer feedback and identify opportunities to align related objectives and maximize positive results. At the end of 2019, subcommittee leads were tasked to select different and new subcommittee members in order to create new subcommittee teams to foster greater collaboration amongst staff members as well as provide the opportunity to utilize the strengths and talents of a diverse team. A brief outline of the 2019 Annual Progress Report highlights is provided in the table below. 2019 Annual Progress Report Highlights: 2020 Parks and Recreation Strategic Plan (See Attachment A for the full report organized into each of the six goal areas.) Item 3 Packet Page 8 Current Park and Facility Projects North Broad Street Neighborhood Park Public Comment was received in advance of the December 6, 2017 Parks and Recreation Commission meeting regarding the exploration of a new park in the North Broad Street neighborhood. Staff continues to work on this action item as part of Goal 4 Objectives. The North Broad Street Neighborhood Park was introduced in the 2018-19 Budget Supplement as a new project for a neighborhood park. In partnership with Public Works, design consultants were selected in Spring 2019, Public Works and Parks and Recreation staff conducted outreach and engagement of the neighborhood to guide the design of the park. Park concept design has been completed with anticipated approval and construction in 2020. Item 3 Packet Page 9 Pickleball Courts at French Park As part of the French Park Improvement Project, the previous basketball court was converted into three dedicated pickleball courts, and the unused sand volleyball court was converted into a 72’ x 40’ basketball area. The grand opening of the new pickleball courts at French park was in September 2019. Looking Ahead to the Final Year of Implementation of the 2020 Parks and Recreation Strategic Plan Staff will complete Strategic Plan objectives and will return to both the Parks and Recreation Commission and the City Council with comprehensive progress completed on the Strategic Plan. In 2020, staff will focus on core areas to help the Parks and Recreation Department maximize limited available resources, provide an array of programming designed to meet the needs of diverse park users, and better define our future relationship with the community; together crafting an exciting future for Parks and Recreation. A sneak peak of coming attractions for 2020 include the following: Previous Council or Advisory Body Action On November 1, 2016, the City Council adopted the 2020 Parks and Recreation Strategic Plan. On December 6, 2017 the Parks and Recreation Commission received a presentation on the 2017 Annual Progress of the 2020 Parks and Recreation Strategic Plan and concurred with the information provided in the first annual report. On January 16, 2018 City Council received and filed the 2017 Annual Progress Report for the 2020 Parks and Recreation Strategic Plan. On February 5, 2019 City Council received and filed the Parks and Recreation Department’s Strategic Plan 2018 Progress Report. Policy Context All activities undertaken as part of the 2020 Parks and Recreation Strategic Plan implementation are done in a manner that is consistent with all adopted City policies, ordinances and open space maintenance and/or natural preserve conservation plans. Item 3 Packet Page 10 Public Engagement Public engagement was done surrounding the initial development and adoption of the 2020 Parks and Recreation Strategic Plan. No new public engagement has been done surrounding the development of the 2019 Annual Progress Report on the Strategic 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: 2019-20 Funding Identified: 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 Receiving and filing the 2019 Annual Progress Report does not result in a direct fiscal impact to the City. The completion of the annual goals and objectives listed in the report were completed in-house by Parks and Recreation staff and within available resources and budget. ALTERNATIVES Do not receive and file the 2019 Annual Progress Report for the 2020 Parks and Recreation Strategic Plan and direct staff to make revisions to the Report. Attachments: a - COUNCIL READING FILE - 2019 Annual Progress Report of the 2020 Parks & Recreation Strategic Plan Item 3 Packet Page 11 Page intentionally left blank. Item 3 Packet Page 12 Department Name: Public Works Cost Center: (5201) Transit For Agenda of: January 21, 2020 Placement: Consent Estimated Time: (N/A) FROM: Shelly Stanwyck, Assistant City Manager - Community Services Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: ADOPTION OF CITY OF SAN LUIS OBISPO TRANSIT’S FEDERAL FISCAL YEAR 2021-23 TITLE VI PLAN RECOMMENDATION Adopt the City of San Luis Obispo Transit’s Federal Fiscal Year 2021-23 Title VI Plan. DISCUSSION Background The US Department of Transportation’s (DOT) Federal Transit Administration (FTA) contributes funding to the City’s transit program (“SLO Transit”). As a result, SLO Transit is subject to the rules, regulations and policies of the FTA. In compliance with FTA regulations, the SLO Transit, must routinely develop and adopt a Title VI Plan (Attachment A) that addresses discrimination including the prohibition of discriminatory actions by the City, its agents, and contractors. Title VI Title VI of the Federal Civil Rights Act, 42 U.S.C. § 2000d et seq., prohibits discrimination by recipients of Federal financial assistance on the basis of race, color, and national origin; including the denial of meaningful access for Limited English Proficient (LEP) persons. This prohibition is a requirement for all programs and activities receiving Federal financial assistance. Under the DOT’s Title VI regulations, recipients of Federal financial assistance are prohibited from using “criteria or methods of administering its program which have the effect of subje cting individuals to discrimination based on their race, color, or national origin.” For example, facially neutral policies or practices that result in discriminatory effects or disparate impacts violate the DOT's Title VI regulations, unless the recipient can show the policies or practices are substantially justified and there is no less discriminatory alternative. A Title VI plan must be developed and adopted to prevent even unintentional practices that could be interpreted as discriminatory. The City last submitted and received approval of its Title VI plan in 2016. The proposed Title VI plan for Council’s consideration is consistent with prior SLO Transit plans and outlines public outreach methods and non-English speaking alternatives for the SLO Transit program. The plan promotes accessible, open-to-the-public, and non- demographic conscious criteria for administrating the SLO Transit program and its services. Item 4 Packet Page 13 Tri-Annual Submission of the Title VI Plan The FTA requires that all funding recipients document their regulatory compliance by submitting a Title VI Plan to its FTA regional civil rights officer once every three years. The Title VI Program must be approved by the direct or primary recipient’s board of directors or appropriate governing entity or official(s) (Council in this instance) responsible for policy decisions prior to submission to FTA. FTA will review and either concur with the submitted work or request the recipient provide additional information or revisions. The City submitted its last Title VI Plan in 2016 (FY 15-16 to 18-19). A revised version thru 2023 is now needed. Staff has reviewed the most recent Federal Circular 4702.1.B regarding Title VI obligations, participated in webinars and coordinated directly with FTA staff before revisiting the SLO Transit program’s Title VI plan. The SLO Transit program’s Title VI plan remains consistent with previously adopted plans but further clarifies and reaffirms SLO Transit’s commitment to Title VI statutes. Policy Context The City Council is the legislative authority which sets the policies under which the City’s programs operate. The City Council has the power to adopt ordinances, resolutions, plans, establish policies, approve programs, establish fees, appropriate funds, adopt budgets and approve contracts. Correspondingly, FTA as the requires that the Title VI program be approved by the direct or primary recipient’s board of directors or appropriate governing entity or official(s) responsible for policy decisions prior to submission to FTA Council’s approval for the Title VI Plan is sought with this Agenda Report. Public Engagement In accordance with Federal requirements, the updated Title VI Plan were brought before the public in a special meeting held on December 5, 2019 and was made available for public review and comment prior to final recommended adoption. All public meetings are held in accordance to the City Public Engagement Manual and SLO Transit’s Public Engagement Policies. CONCURRENCE A draft of the revised plan was shared with FTA’s Civil Rights Officer for initial feedback and review. The revised plan has received tentative approval. 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 4 Packet Page 14 FISCAL IMPACT Budgeted: No Budget Year: Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total There is no impact on the City’s General Fund by submitting the revised Title VI Plan to the Federal Transit Administration. However, Federal funds could be withheld from the Transit Enterprise fund should the City fail in submitting an updated Title VI Plan. There are no impacts to the City’s General fund nor the Transit Fund for developing and adopting a current Title VI plan. The program is a continuation of the Title VI plan currently in effect. The Transit program could however be adversely affected if one is not adopted, as having a Title VI plan is a required for receiving continual federal funding assistance. All operational needs and requirements stemming from Title VI are considered with each Financial Plan and appropriated budget allocations. ALTERNATIVES 1. Deny the adoption of the Title VI but this is not recommended as this would cause the Transit program to lose federal financial assistance. 2. Alter the Title VI plan but any changes should be considered closely with FTA representatives and could require an extension request for submitting a delayed plan. Attachments: a - SLO Transit Title VI Program - FFY 2020-22 Item 4 Packet Page 15 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 1 Title VI Program Federal Fiscal Year (FFY) 2020-22 City of San Luis Obisp o Transit (SLO Transit) 919 Palm Street San Luis Obispo, CA 93401 slotransit.org Date Adopted: January 21, 2020 Item 4 Packet Page 16 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 2 Table of Contents Title VI Program ................................................................................................................................... 1 I. Title VI Policy Statement ................................................................................................................... 4 Applicability.................................................................................................................................................... 4 II. General Requirements and Guidelines ............................................................................................ 5 III. Subcontractors and Vendors .......................................................................................................... 6 IV. Complaint Procedures and Appeals ............................................................................................... 6 How to File a Title VI Complaint with the City of San Luis Obispo Transit ..................................................... 6 What happens to the complaint after it is submitted? ................................................................................. 7 Procedures for Investigating Complaints ....................................................................................................... 7 Appeals Process ............................................................................................................................................. 8 Filing a Title VI Complaint with the FTA Office of Civil Rights ........................................................................ 8 V. Investigations, Complaints or Inquiries ........................................................................................... 9 VI. Record Keeping ............................................................................................................................... 9 VII. Title VI Information Dissemination ................................................................................................ 9 List of Public Locations Title VI Notice Is Posted .......................................................................................... 10 VIII. Public Participation Plan ............................................................................................................. 10 Public Meeting and Comment Period for Major Service Reduction and Fare Increase .............................. 11 Public Noticing Procedure ............................................................................................................................ 11 Scheduling Public Meeting Locations and Times ......................................................................................... 12 Procedures for Conducting Public Meetings ............................................................................................... 13 Documentation of Public Meetings ............................................................................................................. 13 Addressing Public Comments Received ....................................................................................................... 13 Outreach to Engage Minority and Limited English Proficient (LEP) Populations......................................... 13 Mass Transportation Committee (MTC) ...................................................................................................... 14 Membership of Non-Elected Committees and Councils .............................................................................. 15 Summary of Community Outreach Efforts Made Since Last Title VI Program Submission ......................... 15 IX. Limited English Proficiency (LEP) Plan .......................................................................................... 18 Item 4 Packet Page 17 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 3 Four Factor Analysis ..................................................................................................................................... 19 Language Assistance Plan (LAP) ................................................................................................................... 21 1. Identifying LEP Individuals who need Language Assistance....................................... 21 2. Language Assistance Measures .................................................................................. 21 3. Training Staff ............................................................................................................... 23 4. Providing Notice to LEP Persons ................................................................................. 23 5. Monitoring and Updating the LEP Plan ...................................................................... 23 X. Efforts to Ensure Subrecipient Compliance with Title VI ............................................................... 24 XI. Systemwide Service Standards and Policies ................................................................................. 25 Vehicle Load ................................................................................................................................................. 25 Vehicle Headway .......................................................................................................................................... 26 On-Time Performance .................................................................................................................................. 27 Service Availability ....................................................................................................................................... 27 Distribution of Transit Amenities ................................................................................................................. 27 Vehicle Assignment ...................................................................................................................................... 28 XII. Determination of Site or Location of Facilities ............................................................................ 28 APPENDIX A Title VI Notice to Public ........................................................................................... 29 Title VI Notice ............................................................................................................................................... 29 Title VI Notice on City Website .................................................................................................................... 30 Title VI Notice on Buses ............................................................................................................................... 31 Title VI Notice in User Guide ........................................................................................................................ 32 APPENDIX B Employee Annual Education Form ........................................................................... 33 APPENDIX C Acknowledgement of Receipt of Title VI Program ................................................... 34 APPENDIX D Title VI Complaint Form ........................................................................................... 35 APPENDIX E Sample Letter Acknowledging Receipt of Complaint ............................................... 37 APPENDIX F Sample Letter Notifying Complainant that the Complaint Is Substantiated ........... 38 APPENDIX G Sample Letter Notifying Complainant that the Complaint Is Not Substantiated .... 39 Item 4 Packet Page 18 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 4 I. Title VI Policy Statement The City of San Luis Obispo Transit (SLO Transit) is committed to ensuring that no person is excluded from participation in, denied the benefits of, or otherwise subjected to discrimination under any of its programs, activities, or services on the basis of race, color, or national origin, as protected by Title VI of the Civil Rights Act of 1964. Title VI, 42 U.S.C. Section 2000d, of the Civil Rights Act of 1964 states: “No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.” As a Federal Transit Administration (FTA) fund recipient, the City of San Luis Obispo Transit will ensure that its programs, policies, and activities comply with the Department of Transportation (DOT) Title VI Regulations of the Civil Rights Act of 1964. The City of San Luis Obispo Transit will ensure that the level and quality of its transportation service is provided without regard to race, color, or national origin. The City of San Luis Obispo Transit will promote full and fair participation of all affected populations in the transportation decision-making process. The City of San Luis Obispo Transit will ensure that Limited English Proficient (LEP) individuals have access to the City’s transit program, activities, and services. The City of San Luis Obispo Transit, in compliance with Title 49 CFR Section 21.9 (d), will provide information to the public regarding its obligations under the DOT Title VI regulations and apprise members of the public of the protections against discrimination afforded to them by Title VI. The City of San Luis Obispo Transit will not condone retaliation against an individual for his/her involvement in asserting his/her rights pursuant to Title VI or because he/she filed a complaint or participated in an investigation under Title VI, and/or this regulation. Applicability This policy is applicable to all City of San Luis Obispo employees, members of the public , and all contractors hired by the City of San Luis Obispo. Item 4 Packet Page 19 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 5 As of July 1, 2016, the City of San Luis Obispo Transit has an established contract with First Transit, Inc. for operations and maintenance of the City of San Luis Obispo fixed-route public transit system (SLO Transit). The contractor(s), by extension, will also assist and comply with the adopted Title VI policy. Failure of a City of San Luis Obispo Transit employee to follow this policy and procedure may subject such employee to disciplinary action up to and including employment termination. II. General Requirements and Guidelines The City of San Luis Obispo Transit, in ensuring that no person is excluded from participation in, denied the benefits of, or otherwise subjected to discrimination under any of its programs, activities, or services on the basis of race, color, or national origin, will not: Provide any service, financial aid, or benefit that is different from that provided to others; Subject an individual to segregation or separate treatment; Restrict an individual in the enjoyment of any advantage or privilege enjoyed by others; Deny any individual service, financial aid, or benefits under any of the City’s programs, services, or activities; Treat individuals differently in terms of whether they satisfy admission or eligibility requirements ; Deny an individual the opportunity to participate as a member of a planning or advisory body. The City of San Luis Obispo Transit shall evaluate systemwide service and fare changes at the planning and programming stages to determine whether these changes have a discriminatory impact on low-income and Limited English Proficient (LEP) individuals. This applies to major service changes that affect 15 percent or more of systemwide service miles or hours. The City of San Luis Obispo Transit schedules public meetings per the City of San Luis Obispo Major Service Reduction and Fare Increase Policy. The City of San Luis Obispo Transit will keep the public informed of protections against discrimination afforded to them by Title VI and the City’s obligations under Title VI by posting a Title VI Notice to Public (Appendix A) on the City website at slotransit.org, in transit vehicles, and in public areas of the agency’s administrative office. The Title VI Complaint Form (Appendix D) will Item 4 Packet Page 20 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 6 also both be posted on the City website at slotransit.org and is available at the City of San Luis Obispo Public Works Department at 919 Palm Street in San Luis Obispo. The City of San Luis Obispo Transit will provide information, upon request from FTA, in order to investigate complaints of discrimination or to resolve concerns about possible Title VI noncompliance. The City of San Luis Obispo Transit Title VI Program has been prepared in accordance with FTA Circular 4702.1B, dated October 1, 2012. The City of San Luis Obispo Transit will submit its Title VI Program to the FTA Regional Civil Rights Officer every three years to ensure compliance with Title VI Requirements. III. Subcontractors and Vendors All subcontractors and vendors who receive payments from the City of San Luis Obispo Transit where funding originates from any federal assistance are subject to the provisions of Title VI of the Civil Rights Act of 1964 as amended. Written contracts shall contain non-discrimination language, either directly or through the bid specification package which becomes an associated component of the contract. IV. Complaint Procedures and Appeals How to File a Title VI Complaint with the City of San Luis Obispo Transit Any person who believes they have been excluded from participation in, denied the benefits of, or otherwise subjected to discrimination on the basis of race, color, or national origin, may file a signed, written complaint up to one hundred eighty (180) days from the date of the alleged discrimination by contacting the Transit Manager (Title VI Coordinator) by phone, email, or in writing: City of San Luis Obispo Transit Manager (Title VI Coordinator) Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Item 4 Packet Page 21 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 7 The Title VI Complaint Form (Appendix D) may be used to file a Title VI Complaint with the City of San Luis Obispo Transit. The complaint form can be obtained by downloading an electronic form from the City website at slotransit.org or by calling the Title VI Coordinator at (805) 781-7121. The complaint form will be made available in an accessible format upon request. The City of San Luis Obispo Transit encourages all complainants to submit complaint forms by certified mail, return receipt requested, through the U.S. Postal Service. What happens to the complaint after it is submitted? All complaints alleging discrimination on the basis of race, color, or national origin will be directly addressed by the Title VI Coordinator. The City of San Luis Obispo Transit shall provide appropriate assistance to complainants, including those persons with disabilities or limited ability to speak English. A letter acknowledging receipt of complaint will be mailed within thirty (30) working days of receipt of complaint (Appendix E). Please note that in responding to any requests for additional information, a complainant's failure to provide the requested information may result in the administrative closure of the complaint. Procedures for Investigating Complaints Upon receipt of the complaint, the Title VI Coordinator will investigate the complaint and make a determination. Formal investigation of the complaint will be confidential, to the extent allowed by law, and will include, but is not limited to, details of the specific incident, frequency and dates of occurrences, and names of any witnesses. The complainant will be notified of the resolution. How will the complainant be notified of the outcome of the complaint? The City of San Luis Obispo Transit will send a final written response letter to the complainant within sixty (60) working days of receipt of complaint (Appendix F or G). In the letter notifying complainant that the complaint is not substantiated (Appendix G), the complainant is also advised of his or her right to 1) appeal within seven (7) calendar days of receipt of the final written decision from the City of San Luis Obispo Transit, and/or 2) file a complaint externally with the U.S. Department of Transportation (DOT) and/or the Federal Transit Administration (FTA). Item 4 Packet Page 22 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 8 Appeals Process If the complainant is not satisfied with the resolution, an appeal process is availab le. An appeal request for review of a determination of unlawful denial of access or accommodation to the public transportation must be filed, in writing, within seven (7) working days of receipt of the final written decision from the City of San Luis Obispo Transit. The written appeal must include the customer’s name, address, and telephone number. A statement of reason(s) why the complainant believes the denial of the complaint was inappropriate is recommended. The City of San Luis Obispo Public Works Director will set a mutually agreed-upon time and place for the review process with the complainant and/or his/her representatives within thirty (30) working days of the appeals request. The complainant may submit documents or other information to be included with the record and considered in the review process. A record of the review will be kept, as determined by the City of San Luis Obispo Public Works Director. Anyone needing reasonable accommodations may contact the City at (805) 781-7121 for assistance. Filing a Title VI Complaint with the FTA Office of Civil Rights Individuals or organizations can also file a complaint directly with the Federal Transit Administration (FTA) Office of Civil Rights. A complaint must be filed no later than one hundred eighty (180) calendar days after the date of the alleged discrimination, unless the time for filing is extended by FTA. Completed and signed Title VI Complaint forms should be sent to: Federal Transit Administration Office of Civil Rights Attention: Title VI Program Coordinator East Building, 5th Floor – TCR 1200 New Jersey Ave., SE Washington, DC 20590 Phone: 1-866-377-8642 The FTA Title VI Complaint Form can be found at the following link: https://www.transit.dot.gov/regulations-and-guidance/civil-rights-ada/fta-civil-rights-complaint- form Once a complaint has been accepted by FTA for investigation, FTA will go through an investigative process and make determinations based on findings. Investigative process and determination by FTA should be completed within one hundred eighty (180) calendar days of the date the FTA accepts the complaint for investigation. The City of San Luis Obispo Transit will cooperate with FTA, when required, during the investigative process and will take appropriate actions when a violation is determined. Upon completion of the investigation, FTA Office of Civil Rights will Item 4 Packet Page 23 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 9 transmit to the complainant and the grantee a letter of finding and resolution. If either party wishes to appeal the decision, the letter of finding and resolution will provide the opportunity and instructions to do so. V. Investigations, Complaints or Inquiries The City of San Luis Obispo will maintain a list (a minimum of four years in active status) of any Title VI investigations, complaint, or lawsuits filed which allege the City of San Luis Obispo discriminated against a person or group on the basis of race, color, or national origin. The list will include, at a minimum: • The date the investigation, complaint, or lawsuit was filed • A summary of the allegation(s) • The status of investigation, complaint, or lawsuit • Any actions or correction actions taken by the City in response to the investigation, complaint or lawsuit. The City of San Luis Obispo has had no complaints, investigations, or lawsuits which allege discrimination on the basis of race, color, national origin, or any other form of discrimination since the last Title VI Program submission effective December 1, 2016 through November 30, 2019 or active within the last four years. VI. Record Keeping The Title VI Coordinator will maintain permanent records, which include, but are not limited to, signed acknowledgements of receipt from the employees indicating the receipt of the City of San Luis Obispo Title VI Plan, copies of Title VI complaints or lawsuits and related documentation, and records of correspondence to and from complainants, and Title VI investigations. VII. Title VI Information Dissemination Title VI information shall be publicly displayed in the City of San Luis Obispo Transit Facility at 29 Prado Road, the City of San Luis Obispo Transit Center at 990 Palm Street, and on fixed-route revenue vehicles. The plan information, along with contact inf ormation for the City of San Luis Obispo Transit Title VI Coordinator is available on the SLO Transit website at slotransit.org. Additional information relating to nondiscrimination obligation can be obtained from the City of San Luis Obispo Transit Title VI Coordinator. Item 4 Packet Page 24 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 10 Title VI information shall be disseminated to SLO Transit employees annually via the Employee Education form (Appendix B). This form reminds employees of the SLO Transit policy statement and their Title VI responsibilities in their daily work and duties. During New Employee Orientation, new employees shall be informed of the provisions of Title VI and City of San Luis Obispo Transit expectations to perform their duties accordingly. All employees shall be provided a copy of the Title VI Program and are required to sign the Acknowledgement of Receipt (Appendix C). Title VI information shall also be made available in non-English languages, consistent with the City of San Luis Obispo Transit Limited English Proficiency (LEP) plan. List of Public Locations Title VI Notice Is Posted The City of San Luis Obispo Transit Title VI notice to the public is currently posted at the following locations: • City of San Luis Obispo Transit Facility, 29 Prado Road • City of San Luis Obispo Transit Center, 990 Palm Street • California Polytechnic State University, 1 Grand Avenue • San Luis Obispo Amtrak Station, 1011 Railroad Avenue • SLO Promenade, 313 Madonna Road • Fixed-route revenue vehicles (Appendix A) • SLO Transit User Guide (Appendix A) • SLO Transit website, slotransit.org (Appendix A) VIII. Public Participation Plan Per the City of San Luis Obispo Major Service Reduction and Fare Increase Policy, the City of San Luis Obispo shall maintain an open and participative process including the consideration of public comment before any major service reduction or fare increase. I. Purpose 49 U.S.C. section 5307(d)(1)(I) provides that urban grant recipients shall have: “a locally developed process to solicit and consider public comment before raising a fare or carrying out a major reduction of transportation.” Item 4 Packet Page 25 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 11 The City of San Luis Obispo Transit is a recipient of Federal Transit funding and therefore must establish an acceptable public meeting procedure with respect to fare increase and major service reductions as required by Federal law. Public Meeting and Comment Period for Major Service Reduction and Fare Increase II. Definitions a. A major service reduction is defined as a reduction in service of 15 percent of daily revenue miles or hours or a number of indefinite service reductions in any given fiscal year that add up to more than 15 percent of daily revenue miles or hours. b. A fare increase is defined as any increase to a fare per price per unit of service. c. An emergency service change is defined as a service change that is to be in effect for fewer than thirty (30) days and the service change does not meet the criteria as a major service reduction. Examples include but are not limited to those due to power failure, severe weather, major construction, reconstruction, and improvement projects. A public comment period shall be held at least forty-five (45) calendar days prior to implementation of a major service change or fare increase. Public Noticing Procedure III. Procedure a. If a major service reduction or fare increase is determined to be necessary by the City of San Luis Obispo transit staff, a recommendation and supporting materials will be submitted to the City of San Luis Obispo City Council for consideration. b. If City Council determines that a major service reduction or fare increase to be necessary based on staff recommendation and supporting documentation, staff will schedule and advertise no less than two public meetings to be conducted in accordance with the City of San Luis Obispo Public Engagement Manual. One meeting will be held during typical workday hours (before 5 p.m.) and the other after workday hours (after 5 p.m.). At a minimum, public notices for public meetings will be posted or electronically provided to the following, in both English and Spanish: Item 4 Packet Page 26 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 12 • City Hall, 990 Palm Street • Downtown Transit Center, 990 Palm Street • City/County Public Library, 995 Palm Street • On-board fixed-route transit vehicles • Government Access Channel 20 • City of San Luis Obispo Transit (SLO Transit) website • City of San Luis Obispo website • Social Media • Paid and legal notices in local print periodicals • Press releases Scheduling Public Meeting Locations and Times a. To the greatest extent possible, public meetings will be held in a convenient, accessible and diverse location. All facilities used for a public meeting will be accessible to persons with disabilities. • The public meeting location will be along bus routes whenever possible; • The public meeting will be held under the supervision of the City of San Luis Obispo Transit Manager; • The public comments will be recorded and filed; • The public meeting may be held at a regular Mass Transportation Committee meeting; • Spanish speaking assistance availability a. Following the public meeting, staff will give a recommendation for City Council consideration. b. If City Council adopts a plan for Major Service Reduction or Fare Increase, the City of San Luis Obispo Transit Manager shall be authorized and directed to implement the action according to the approved transit schedule. The schedule shall provide a minimum of 45 calendar days public notice of the service or fare changes prior to implementation. IV. Exemptions The following criteria establish certain instances which are exempt from the requirement to solicit public comment: • Annual seasonal variations (i.e. academic service and summer service) • Special events (i.e. marathon, triathlon, etc.) • Changes imposed and under control by private organizations (i.e. Cal Poly) Item 4 Packet Page 27 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 13 • Emergency service change • Experimental service changes for a period of 180 days or less, unless the chang es extend beyond 180 days and meet the criteria • Any fare, ticket or pass rate changes that do not result in increased fares per unit of service • Increases in service • Decreases in fares Procedures for Conducting Public Meetings Public meetings will begin with a welcome and introduction of staff present. The meeting purpose and proposed action will be explained and clarified for attendees. When the explanation of proposed actions is completed, the public will be invited to offer their comments. All pe rsons wishing to comment will have the opportunity to do so. This public comment period will precede the close of the workshop. Documentation of Public Meetings Records of City of San Luis Obispo Transit public meetings on major service reduction or fare increase will be maintained on file for ten (10) years per the City of San Luis Obispo Records Retention Policy and Schedule. Addressing Public Comments Received Public comments received either in writing or verbally during a public meeting or public co mment period will be addressed by the City of San Luis Obispo Transit prior to the established date for City Council decision regarding proposed major service reduction or fare increase. Public comments will be entered into the public record of the comment process. Staff will evaluate and analyze all relevant comments received to determine whether they are reasonable to meet. Outreach to Engage Minority and Limited English Proficient (LEP) Populations The City of San Luis Obispo Transit will continue assessing the language needs of citizens in its service area per the Language Assistance Plan (LAP), which is described in greater detail in the Limited English Proficiency (LEP) Plan section of this Title VI Program. To the greatest extent possible, to elicit public participation from minority and LEP populations, the City will engage in the following outreach activities: Item 4 Packet Page 28 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 14 • Public outreach may include attending already existing community meetings and gatherings in order to invite participation from LEP populations who may not attend hosted public events. • The City of San Luis Obispo Transit will ensure that non-English language interpretation will be available at any public meeting and community event, as deemed necessary. • Public meeting notices will be displayed in both English and Spanish, as deemed necessary. • Event information on the City of San Luis Obispo Transit website will be posted in English and Spanish, as deemed necessary. • The City of San Luis Obispo Transit will distribute event information to community groups and agencies that work with LEP populations, if such contacts exist. • The City of San Luis Obispo Transit will contract to provide language assistance, or interpretations services, for customers and callers that are non-English speaking, as deemed necessary. Mass Transportation Committee (MTC) The City of San Luis Obispo Mass Transportation Committee (MTC) Advisory Body holds meetings bi-monthly to review SLO Transit service and performance. The public is welcome to attend these meetings and share in discussion. All meetings are compliant with the Brown Act of California which guarantees the public the right to attend and participate in meetings of local legislative bodies. Agendas and minutes are available on the City of San Luis Obispo website at slocity.org. The City of San Luis Obispo Mass Transportation Committee (MTC) Advisory Body has nine (9) members: • Cal Poly designated employee • Cal Poly student representative designated by Associated Students, Inc. (ASI) • Senior citizen (62 years of age or older) • Person from the business community • Person with technical transportation planning experience • Disabled person • Member at-large • Alternate members (2) Item 4 Packet Page 29 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 15 Committee vacancies are listed on the City of San Luis Obispo website at slocity.org, as well as on the SLO Transit website at slotransit.org and SLO Transit social media. The City Clerk’s Office and City Council review the submitted applications in fairness and equity, evaluating the necessary qualifications for the vacant position. Public meetings may be held at regular MTC Advisory Body meetings. Spanish speaking assistance is available. Membership of Non-Elected Committees and Councils The City of San Luis Obispo Transit does not select membership of non-elected committees and councils. Summary of Community Outreach Efforts Made Since Last Title VI Program Submission The City of San Luis Obispo Transit has made the following community outreach efforts since the last Title VI Program submission, effective December 1, 2016 through November 30, 2019, summarized below: January 31, 2017 Public Meeting Fare Analysis + Title VI Program (FFY 2017-19) Notice of public meeting posted (English/Spanish) at City Hall, Downtown Transit Center, City/County Public Library, Government Access Channel 20, City website, SLO Transit website, social media, paid notices (Tribune, New Times), press releases, and on- board fixed route public transit vehicles Meeting held in the City/County Library Room, a convenient and accessible location Meeting held at 4:30 PM and 5:30 PM and same content was reviewed at both meeting times Presentation regarding fare analysis and Title VI Program Draft plans available for review on SLO Transit website at slotransit.org, the City of San Luis Obispo Clerks Office at 990 Palm Street, and the City of San Item 4 Packet Page 30 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 16 Luis Obispo Public Works Department at 919 Palm Street Solicited public comment for 45 days April 4, 2017 Public Hearing Transit Fare + Advertising Rates Update Public Hearing for City Council adoption of the transit fare and advertising rate update scheduled more than 45 days prior to implementation Notice of public hearing posted (English/Spanish) at City Hall, Government Access Channel 20, City website, SLO Transit website, social media, paid notice (Tribune, New Times), and on-board fixed route transit vehicles Public Hearing held at City Hall Council Chambers, a convenient and accessible location June 8, 2017 Public Meeting Proposed DBE Goal Notice of public meeting posted (English/Spanish) at City Hall, Downtown Transit Center, City/County Public Library, Government Access Channel 20, City website, SLO Transit website, social media, paid notices (Tribune, New Times), press releases, and on- board fixed route public transit vehicles Meeting held in the City/County Library Room, a convenient and accessible location Meeting held at 4:30 PM and 5:30 PM and same content was reviewed at both meeting times Presentation regarding Proposed DBE Goal Draft plans available for review on SLO Transit website at slotransit.org, the City of San Luis Obispo Clerks Office at 990 Palm Street, and the City of San Luis Obispo Public Works Department at 919 Palm Street Solicited public comment for 45 days Item 4 Packet Page 31 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 17 December 5, 2019 Public Meeting Title VI Program (FFY 2020-22) + Proposed DBE Goal (FFY 2021-23) Notice of public meeting posted (English/Spanish) at City Hall, Downtown Transit Center, City/County Public Library, Government Access Channel 20, City website, SLO Transit website, social media, paid notices (New Times), press releases, and on-board fixed route public transit vehicles Meeting held in the City/County Library Room, a convenient and accessible location Meeting held at 4:30 PM and 5:30 PM and same content was reviewed at both meeting times Presentation regarding Title VI Program and Proposed DBE Goal Draft plans available for review on SLO Transit website at slotransit.org, the City of San Luis Obispo Clerks Office at 990 Palm Street, and the City of San Luis Obispo Public Works Department at 919 Palm Street Solicited public comment for 45 days The City of San Luis Obispo Transit held public meetings regarding the Title VI Program (FFY 2017- 19 and FFY 2020-22), Proposed DBE Goal (FFY 2018-20 and FFY 2021-23), and fare analysis. Public meetings were conducted in accordance with the City of San Luis Obispo Major Service Reduction and Fare Increase Policy and held under the supervision of the City of San Luis Obispo Transit Manager. Public comments were recorded and filed. The City of San Luis Obispo Transit submits to the California Department of Transportation (DOT) and Federal Transit Administration (FTA) annually an application for funding. The application requests funding for both capital and operating assistance. Part of the annual application is a public notice, which includes a 30-day public comment period. Additionally, the City of San Luis Obispo Transit works with the transit agencies and stakeholder organizations in the service area to review and discuss the planning and contribute to the decision-making process. The City of San Luis Obispo Transit from time to time will provide on - board survey handouts to customers for feedback. Item 4 Packet Page 32 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 18 IX. Limited English Proficiency (LEP) Plan Per the United States Department of Justice (U.S. DOJ) Executive Order 13166, Limited English Proficient (LEP) persons are individuals who do not speak English as their primary lan guage and have a limited ability to read, speak, write, or understand English. The City of San Luis Obispo Transit is required to take responsible steps to ensure meaningful access to the benefits, services, information and other important portions of our programs and activities of individuals who are LEP. The City of San Luis Obispo Transit consulted the United States Department of Transportation (U.S. DOT) LEP Guidance and performed a Four Factor Analysis of public engagement to determine the appropriate mix of LEP services to offer. The plan has been prepared in accordance with Title VI of the Civil Rights Act of 1964, FTA Circular 4702.1B, dated October 1, 2012, which states that no person shall be subjected to discrimination on the basis of race, color, or national origin. This plan outlines how to identify a person who may need language assistance, the ways in which assistance may be provided, staff training that may be required, and how to notify LEP persons that assistance is available. In order to prepare this plan, the City utilized the U.S. DOT Four Factor Analysis which considers the following factors: 1. The number or proportion of LEP persons in the service area eligible to be served or likely to be encountered by the City of San Luis Obispo Transit Program; 2. The frequency with which LEP persons come in contact with City of San Luis Obispo Transit programs, activities, or services; 3. The nature and importance of programs, activities or services provided by the City of San Luis Obispo Transit to the LEP population; and 4. The resources available to City of San Luis Obispo Transit and overall costs of providing LEP assistance. A summary of the results of the City of San Luis Obispo Transit Four Factor Analysis is in the following section. Item 4 Packet Page 33 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 19 Four Factor Analysis 1. The number or proportion of LEP persons in the service area eligible to be served or likely to be encountered by the City of San Luis Obispo Transit Program; Data was gathered from the following sources to identify information on persons who do speak languages other than English at home and who speak it less than well or not at all and would be classified as LEP: • 2010 Census Data • Census Bureau American Community Survey and Fact Finder Surveys • Department of Labor LEP Special Tabulation website A review of the census data on the numbers of LEP persons revealed that in San Luis Obispo, California the highest percentage of total population five (5) years old and over that spoke a language other than English at home were Spanish speakers. The total Spanish spea king population was 14.7% of the total population of 45,119 in San Luis Obispo (see U.S. Census Bureau Data). The number of Spanish speaking LEP individuals that spoke English “not well” or “not at all” in San Luis Obispo was 13.9%. Pursuant to the Safe Harbor Provision, an agency is obligated to provide translation of vital documents for eligible LEP language groups that constitute either five percent (5%) or 1,000 persons of the population being served. Documents related to fares, transfers, passes, pass sale locations, days of service, and contact information are available in both English and Spanish translations. The City will provide additional information and interpretation when requested. 2. The frequency with which LEP persons come in contact with City of San Luis Obispo Transit programs, activities, or services; The City of San Luis Obispo Transit serves LEP persons daily via our fixed route transit system that operates 15 peak vehicles from Labor Day to mid-June and reduced service from mid-June to Labor Day. Within the First Transit, Inc. operations and maintenance staff located at 29 Prado Road, there are ten (10) bilingual employees available for Spanish translation, including six (6) drivers, one (1) safety manager, (1) dispatcher, and (2) technicians. Staff translated in person approximately 10 to 15 times a month and over the phone 5 to 10 times a month during the previous 12 months. Within the Public Works Department located at 919 Palm Street, there is one (1) bilingual approved transit employee in addition to four (4) bilingual approved employees available for Spanish translation. No calls or requests for translation were received by City of San Luis Obispo staff during the previous 12 months. Item 4 Packet Page 34 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 20 The City of San Luis Obispo Transit will continue to monitor the following key program areas such as: • Use of bus • Participation in public meetings • Customer service interactions • Ridership surveys • Operator surveys • Purchase of passes and tickets through outlets, and the Rideshare website. 3. The nature and importance of programs, activities or services provided by the City of San Luis Obispo Transit to the LEP population; The City of San Luis Obispo is centrally located in California between Los Angeles and San Francisco. The City has an estimated population of 45,119 (2010 Census Bureau estimate). San Luis Obispo is also home to California Polytechnic State University (Cal Poly), a major source of population, employment, and other overall economic and social impacts. SLO Transit, a program operated out of the Department of Public Works, is the City of San Luis Obispo Transit provider and operates fixed route service throughout the City and trolley service downtown. Other regional and paratransit service providers also offer service to the City. The City of San Luis Obispo Transit has an established contract with First Transit, Inc. for operations and maintenance of the City of San Luis Obispo fixed -route public transit system (SLO Transit) within the City of San Luis Obispo. SLO Transit operates a total of eight (8) regular routes on weekdays, four (4) routes on weekends, as well as a San Luis Drive Tripper (SLT), Laguna Tripper (LT), and Highland Tripper (HT) on academic weekdays, 6 Express on Thursday (September – November), and a Downtown Trolley Thursday year-round, Friday (June – Labor Day), and Saturday (April – October). Four routes operate weekday evenings during the academic year. 4. The resources available to City of San Luis Obispo Transit and overall costs of providing LEP assistance. SLO Transit currently provides some information in Spanish such as surveys, bus routes and fares, public service announcements and information on the buses. Documents related to fares, transfers, passes, pass sale locations, days of service, and contact information are available in both English and Spanish translation. Within the First Transit, Inc. operations and maintenance staff located at 29 Prado Road, there are ten (10) bilingual employees available for Spanish translation, including six (6) drivers, one (1) safety manager, (1) dispatcher, and (2) technicians . Within the Public Works Department located at 919 Palm, there is one (1) bilingual approved transit Item 4 Packet Page 35 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 21 employee in addition to four (4) bilingual approved employees available for Spanish translation. About $2,500/year could be allocated in FY 2020-22 for additional language services. Language Assistance Plan (LAP) Based on the Four Factor Analysis, the City of San Luis Obispo Transit developed the Language Assistance Plan (LAP), comprised of the following five areas: 1. Identifying LEP Individuals who need Language Assistance The City of San Luis Obispo Transit may identify an LEP person who needs language assistance as follows: • Bilingual approved, Spanish speaking translators are available upon request during normal business hours for in person or phone translation • Route and schedule information available on fixed-route vehicles in both English and Spanish. Drivers can assist LEP persons boarding the bus by showing them the Spanish translation in the route and schedule materials or contacting bilingual employees within First Transit located at 29 Prado Road or Public Works Department located at 919 Palm Street • Bilingual assistance will be available at public meetings and community events. By greeting and welcoming attendees upon arrival, staff will be able to determine the need for bilingual assistance • Bilingual assistance requests, either at meetings or over the phone, will be monitored to determine whether language assistance beyond Spanish is needed at future events 2. Language Assistance Measures There are numerous language assistance measures available to LEP persons, including both oral and written language services. There are also various ways in which the City of San Luis Obispo Transit responds to LEP persons, whether in person, by phone, or in writing. The City of San Luis Obispo Transit will assist LEP persons who need language assistance as follows: • Route and schedule information available on fixed-route vehicles in both English and Spanish Item 4 Packet Page 36 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 22 • Route and schedule information available in both English and Spanish on the City of San Luis Obispo Transit Website at slotransit.org • Bilingual approved, Spanish speaking translators are available upon request during normal business hours for in person or phone translation • The City of San Luis Obispo Title VI Notice (Appendix A) is posted in both English and Spanish, per the List of Public Locations Title VI Notice Is Posted • The City of San Luis Obispo Title VI Policy, Title VI Complaint Form (Appendix D), and LEP Plan are posted in English and Spanish on the City of San Luis Obispo Transit website at slotransit.org • Per the Public Participation Plan, the public participation strategy will offer early and continuous opportunities for the public, including LEP persons, to be involved in the identification of social, economic, and environmental impacts of proposed transportation decisions • The City of San Luis Obispo Transit will ensure that non-English language interpretation will be available at any public meeting and community event, as deemed necessary • The City of San Luis Obispo Transit will contract to provide language assistance, or interpretation services, for customers and callers that are non-English speaking, as deemed necessary • The City of San Luis Obispo Transit will provide outreach to the Spanish speaking community in San Luis Obispo, which may include attending already existing community meetings and gatherings in order to invite participation from LEP populations who may not attend hosted public events • Public participation opportunities through means other than written communication, such as personal interviews or use of audio or video recording devices to capture oral comments will be considered by the City of San Luis Obispo Transit • Transit surveys to be conducted by the City of San Luis Obispo Transit and available in both English and Spanish • Radio, television, or newspaper ads on stations and in publications that serve LEP populations to be considered by the City of San Luis Obispo Transit Item 4 Packet Page 37 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 23 3. Training Staff The City of San Luis Obispo Transit will train staff on its roles and responsibilities in providing meaningful access to services for LEP persons: • The City of San Luis Obispo Transit provides contractor staff with the Employee Annual Education Form (Appendix B) and Acknowledgement of Receipt of Title VI Program (Appendix C) for annual review of Title VI LEP requirements for providing meaningful access to services for LEP persons • The City of San Luis Obispo Transit has a list of simple phrases for responding to LEP persons, as well as bilingual approved employees to be referenced for additional translation as needed 4. Providing Notice to LEP Persons The City of San Luis Obispo Transit will provide Notice to LEP persons, both oral and written communications as follows: • Pursuant to the Safe Harbor Provision, vital documents related to fares, transfers, passes, pass sale locations, days of service, and contact information are available in both English and Spanish translations • The City of San Luis Obispo Title VI Notice (Appendix A) is posted in both English and Spanish, per the List of Public Locations Title VI Notice Is Posted • The City of San Luis Obispo Title VI Policy, Title VI Complaint Form (Appendix D), and LEP Plan are posted in English and Spanish on the City of San Luis Obispo Transit website at slotransit.org • Public meeting notices will be displayed in both English and Spanish, as deemed necessary • Additional information and interpretation will be provided as needed 5. Monitoring and Updating the LEP Plan The City of San Luis Obispo Transit will perform the Four Factor Analysis every three years to monitor changes in demographics and identify additional information or activities that might improve non-discriminatory service to LEP persons. The City of San Luis Obispo Transit will Item 4 Packet Page 38 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 24 consider whether new documents and services need to be made accessible for LEP persons . The City will then evaluate the projected financial and personnel needed to provide the requested services and assess which of these can be provided cost-effectively. The City of San Luis Obispo Transit will examine and update the LEP plan as follows: • Record and report on the number of LEP persons encountered annually • Determine how the needs of LEP persons have been addressed • Determine the current LEP population in the service area and whether the need for translation services has changed • Determine whether local language assistance programs have been effective and sufficient to meet the need • Determine whether the City of San Luis Obispo Transit financial resources are sufficient to fund language assistance resources needed • Determine whether the City of San Luis Obispo Transit and its contractor have fully complied with the foals of this LEP Plan • Determine whether complaints have been received concerning the agency’s failure to meet the needs of LEP individuals The City of San Luis Obispo Transit will update the LEP Pl an as required by the U.S. DOT. X. Efforts to Ensure Subrecipient Compliance with Title VI As a primary recipient of FTA funds, the City of San Luis Obispo Transit is required to provide assistance to subrecipients of federal financial assistance to supp ort subrecipient compliance with Title VI regulations. Primary recipients are also required to monitor subrecipients for compliance with regulations. The City of San Luis Obispo Transit currently does not extend FTA financial assistance to subrecipients. Item 4 Packet Page 39 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 25 XI. Systemwide Service Standards and Policies Service standards and policies are designed to encourage and include public participation in the decision-making process in order to deter any discrimination and/or exclusion. To review the strategies and procedures set forth by the City of San Luis Obispo Transit , refer to the Public Participation Plan in this document. In accordance with FTA Circular 4702.1B, Chapter IV, the City of San Luis Obispo Transit is required to set service standards for each specific mode of fixed-route transit provided, and at a minimum must include the following indicators: a. Vehicle Load b. Vehicle Headway c. On-Time Performance d. Service Availability The City of San Luis Obispo Transit is also required, at a minimum, to set services policies for the distribution of transit amenities for each mode and vehicle assignment. The City of San Luis Obispo Transit currently has an active fleet of seventeen (17) buses that are used for the City of San Luis Obispo fixed-route transit service. Only fifteen (15) of these buses are used at peak periods of service. This does not trigger the threshold of additional service standards which transit providers that operate fifty (50) or more fixed-route vehicles in peak service must include as part of their Title VI Program. The following sections outline the City of San Luis Obispo Transit service standards and policies for its fixed-route services. Vehicle Load Vehicle load is expressed as the ratio of passengers to the total number of seats on a vehicle. Vehicle load varies by route, time of day, and season. The City of San Luis Obispo Transit uses fixed-route fleet of buses interchangeably systemwide based on ridership demand, vehicle availability, and roadway constraints. Roadway constraints and passenger loads limit bus interchangeability on certain routes. The table below identified the maximum load factor for the City of San Luis Obispo fleet. Bus Vehicle Type Seated Standing Total Maximum Load Factor 30-ft 2007 Gillig 25 15 40 1.6 35-ft 2008 Gillig 34 20 54 1.6 40-ft 2008 Gillig 38 25 63 1.6 Item 4 Packet Page 40 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 26 40-ft 2009 Alexander Dennis Trolley 83 40 123 1.5 28-ft 2011 El Dorado Cutaway 28 10 38 1.3 40-ft 2012 Gillig 38 25 63 1.6 40-ft 2013 Gillig 38 25 63 1.6 40-ft 2017 Gillig BRT 38 25 63 1.6 Vehicle Headway Vehicle headway is the amount of time between two vehicles traveling in the same direction on a given line or combination of lines. A shorter headway corresponds with more frequent service. Vehicle headways are measured in minutes (e.g. every 15 minutes) and are generally used to determine the level of service provided along a route. SLO Transit operates a total of eight (8) regular routes on weekdays, four (4) routes on weekends, as well as a San Luis Drive Tripper (SLT), Laguna Tripper (LT), and Highland Tripper (HT) on academic weekdays, 6 Express (6X) on Thursday (September – November), and a Downtown Trolley Thursday year-round, Friday (June – Labor Day), and Saturday (April – October). The following tables identify the average headways for each regular route, provided during different periods of the day. Academic Service Routes Morning 6:00 AM - 12:00 PM Afternoon 12:00 PM – 6:00 PM Evening 6:00 PM – 11:00 PM Route 1A 60 minutes 60 minutes 60 minutes Route 1B 60 minutes 60 minutes 60 minutes Route 2A 60 minutes 60 minutes 60 minutes Route 2B 60 minutes 60 minutes 60 minutes Route 3A 20 minutes 60 minutes 60 minutes Route 3B 60 minutes 30 minutes (avg) 60 minutes Route 4A 45 minutes 45 minutes 45 minutes Route 4B 45 minutes 45 minutes 45 minutes Summer Service Routes Morning 6:00 AM - 12:00 PM Afternoon 12:00 PM – 6:00 PM Evening 6:00 PM – 8:00 PM Route 1A 60 minutes 60 minutes 60 minutes Route 1B 60 minutes 60 minutes none Route 2A 60 minutes 60 minutes 60 minutes Item 4 Packet Page 41 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 27 Route 2B 60 minutes 60 minutes none Route 3A 60 minutes 60 minutes 60 minutes Route 3B 60 minutes 60 minutes none Route 4A 45 minutes 45 minutes 45 minutes Route 4B 45 minutes 45 minutes none Weekend Service Routes Morning 8:00 AM - 12:00 PM Afternoon 12:00 PM – 6:00 PM Evening 6:00 PM – 8:00 PM Route 1A 60 minutes 60 minutes 60 minutes Route 2A 60 minutes 60 minutes 60 minutes Route 3A 60 minutes 60 minutes 60 minutes Route 4A 45 minutes 45 minutes 45 minutes On-Time Performance On-time performance is a measure of runs completed as scheduled, which is defined by the transit operator. City of San Luis Obispo Transit routes are considered to be “on time” if the bus departs an established timepoint no later than five (5) minutes as published on the route schedule. Buses are not allowed to depart earlier than the scheduled timepoint. To ensure high quality of service, on-time performance standard for the City’s fixed-route transit services is set at 95%. Service Availability Service availability is a general measure of the distribution of routes within a transit provider’s service area. For the City of San Luis Obispo, transit routes are designed to provide transit access within ¼ mile for 99 percent of residents within the City of San Luis Obispo. Distribution of Transit Amenities Transit amenities refer to the items of comfort, convenience, and safety that are available to the general riding public. For the City of San Luis Obispo Transit, installation of transit amenities along any specific route is based on ridership demand and the number of passenger boardings at stops along these routes. Currently, SLO Transit riders have access to over 165 bus stops. The City of San Luis Obispo Transit is responsible for maintaining bus stops and bus stop amenities. Item 4 Packet Page 42 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 28 Vehicle Assignment As previously stated, fleet vehicles are not route specific or assigned by service mode. Vehicles with the highest seating capacity are assigned to routes with higher passenger ridership. XII. Determination of Site or Location of Facilities Title 49 CFR Section 21.9(b)(3), the City of San Luis Obispo Transit is required to conduct a Title VI equity analysis during the planning stage of any facility in order to ensure that the project’s location is selected without regard to race, color, or national origin. Since the last Title VI Program submission, the City has not planned or constructed any facilities as defined by the circular. Therefore, the City of San Luis Obispo Transit has not completed a Title VI Equity Analysis. An Equity Analysis will be conducted should the City engage in planning for the construction of any facility requiring analysis. Item 4 Packet Page 43 City of San Luis Obispo - Title VI Program | Page 29 APPENDIX A Title VI Notice to Public Identified on the City website at slotransit.org, in transit vehicles, and in public areas of the agency’s administrative office. Title VI Notice Title VI Policy Title VI, 42 U.S.C. Section 2000d, of the Civil Rights Act of 1964 states: “No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.” The City of San Luis Obispo Transit (SLO Transit) respects civil rights and operates its programs and services without regard to race, color or national origin. SLO Transit is committed to complying with Title VI requirements in all of its programs and services. Making a Title VI Complaint Any person who believes he/she has been subjected to discrimination in the delivery of or access to public transportation services on the basis of race, color, or national origin may file a complaint wit h SLO Transit. Such complaint must be filed in writing with SLO Transit no later than 180 days after the alleged discrimination. For a complete list of complaint procedures and the Title VI Complaint Form, please visit the City of San Luis Obispo Transit Website at slotransit.org. For more information on the Title VI transit obligations and how to file a complaint, please contact SLO Transit as listed below: City of San Luis Obispo Transit Manager (Title VI Coordinator) Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Item 4 Packet Page 44 City of San Luis Obispo - Title VI Program | Page 30 Title VI Notice on City Website Item 4 Packet Page 45 City of San Luis Obispo - Title VI Program | Page 31 Title VI Notice on Buses Item 4 Packet Page 46 City of San Luis Obispo - Title VI Program | Page 32 Title VI Notice in User Guide Item 4 Packet Page 47 City of San Luis Obispo - Title VI Program | Page 33 APPENDIX B Employee Annual Education Form Title VI Policy No person shall, on the grounds of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. All employees of San Luis Obispo Transit (currently contracted by First Transit, Inc.) are expected to consider, respect, and observe this policy in their daily work and duties. If a citizen approaches you with a question or complaint, direct him or her to the City of San Luis Obispo Transit Manager (Title VI Coordinator). In all dealings with citizens, use courtesy titles (i.e. Mr., Mrs., Ms., or Miss) to address them without regard to race, color, or national origin. Item 4 Packet Page 48 City of San Luis Obispo - Title VI Program | Page 34 APPENDIX C Acknowledgement of Receipt of Title VI Program I hereby acknowledge the receipt of the San Luis Obispo Transit Title VI Program. I have read the plan and am committed to ensuring that no person is excluded from participation in, or denied the benefits of its transit services on the basis of race, color, or national origin, as protected by Title VI in Federal Transit Administration (FTA) Circular 4702.1.B. _________________________________ Your signature _________________________________ Print your name _________________________________ Date Item 4 Packet Page 49 City of San Luis Obispo - Title VI Program | Page 35 APPENDIX D Title VI Complaint Form City of San Luis Obispo Transit – SLO Transit Name: ____________________________________________________________________________ Address: ___________________________________________________________________________ City: ______________________________________ State: ____________ Zip Code: ______________ Home Telephone No: ( ) ___________________________ Work Telephone No: ( ) ____________________________ Email Address: ______________________________________ What do you believe is the reason for your discrimination?: Race Color National Origin Date of Alleged Incident: ______________________________ Explain as clearly as possible what happened and how you believe you were discriminated against. Indicate who was involved. Be sure to include the names and contact information of any witnesses. If more space is needed please use the back of the form. Have you filed this complaint with any other federal, state, or local agency; or with any federal or state court? Yes No If yes, check all that apply: Item 4 Packet Page 50 City of San Luis Obispo - Title VI Program | Page 36 Federal agency Federal Court State Agency State Court Local Agency Please provide information about a contact person at the agency/court where the complaint was filed: Name: ____________________________________________________________________________ Address: ___________________________________________________________________________ City: ______________________________________ State: ____________ Zip Code: ______________ Telephone Number: _________________________________ Please sign below. You may attach any written materials or other information that you think is relevant to your complaint. Signature: _______________________________________ Date: ____________________________ Please mail this form to: City of San Luis Obispo Transit Manager (Title VI Coordinator) Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Title VI of the Civil Rights Act of 1964 states: “No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.” The City of San Luis Obispo Transit (SLO Transit) respects civil rights and operates its programs and services without regard to race, color or national origin. SLO Transit is committed to complying with Tile VI requirements in all of its programs and services. Any person who believes he/she has been subjected to discrimination in the delivery of or access to public transportation origin, may file a complaint with SLO Transit. Such complaint must be filed in writing with SLO Transit no later than 180 days after the alleged discrimination. A letter acknowledging receipt of complaint will be mailed within 30 days. For more information on the Title VI transit obligations and how to file a complaint, please contact SLO Transit: City of San Luis Obispo Transit Manager (Title VI Coordinator), Public Works Department, 919 Palm Street, San Luis Obispo, CA 93401 Item 4 Packet Page 51 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 37 APPENDIX E Sample Letter Acknowledging Receipt of Complaint Today’s Date Ms. Jo Doe 1234 Main St. San Luis Obispo, California 93401 Dear Ms. Doe: This letter is to acknowledge receipt of your complaint against San Luis Obispo Transit allegin g _____________________________________________________________________________. An investigation will begin shortly. If you have additional information you wish to convey or questions concerning this matter, please feel free to contact this office by telephoning _____ ___________, or write to me at this address. Sincerely, Title VI Coordinator City of San Luis Obispo Transit Manager Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Item 4 Packet Page 52 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 38 APPENDIX F Sample Letter Notifying Complainant that the Complaint Is Substantiated Today’s Date Ms. Jo Doe 1234 Main St. San Luis Obispo, California 93401 Dear Ms. Doe: The matter referenced in your letter of ______________ (date) against San Luis Obispo Transit (SLO Transit) alleging Title VI violation has been investigated. (An/Several) apparent violation(s) of Title VI of the Civil Rights Act of 1964, including those mentioned in your letter (was/were) identified. Efforts are underway to correct these deficiencies. Thank you for calling this important matter to our attention. You were extremely helpful during our review of the program. (If a hearing is requested, the following sentence may be appropriate.) You may be hearing from this office, or from federal authorities, if your services should be needed during the administrative hearing process. Sincerely, City of San Luis Obispo Transit Manager (Title VI Coordinator) Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Item 4 Packet Page 53 City of San Luis Obispo Transit – Title VI Program – FFY 2020-22 | Page 39 APPENDIX G Sample Letter Notifying Complainant that the Complaint Is Not Substantiated Today’s Date Ms. Jo Doe 1234 Main St. San Luis Obispo, California 93401 Dear Ms. Doe: The matter referenced in your complaint of ______________ (date) against San Luis Obispo Transit (SLO Transit) alleging ____________________________ has been investigated. The results of the investigation did not indicate that the provisions of Title VI of the Civil Rights Act of 1964, had in fact been violated. As you know, Title VI prohibits discrimination based on race, color, or national origin in any program receiving federal financial assistance. San Luis Obispo Transit has analyzed the materials and facts pertaining to your case for evidence of the City’s failure to comply with any of the civil rights laws. There was no evidence found that any of these laws have been violated. I therefore advise you that your complaint has not been substantiated, and that I am closing this matter in our files. You have the right to 1) appeal within seven calendar days of receipt of this final written decision from San Luis Obispo Transit, and/or 2) file a complaint externally with the U.S. Department of Transportation and/or the Federal Transit Administration at Federal Transit Administration Office of Civil Rights Attention: Title VI Program Coordinator East Building, 5th Floor - TCR 1200 New Jersey Ave., SE Washington, DC 20590 Thank you for taking the time to contact us. If I can be of assistance to you in the future, do not hesitate to call me. Sincerely, City of San Luis Obispo Transit Manager (Title VI Coordinator) Public Works Department 919 Palm Street San Luis Obispo, CA 93401 (805) 781-7121 slotransit@slocity.org Item 4 Packet Page 54 Department Name: Community Development Cost Center: 4008 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Department Prepared By: Cara Vereschagin, Housing Coordinator SUBJECT: PEOPLES’ SELF-HELP HOUSING CORPORATION’S REQUEST OF AFFORDABLE HOUSING FUNDS FOR TWO NEW AFFORDABLE HOUSING DEVELOPMENTS RECOMMENDATION 1. Adopt a Resolution (Attachment A) approving an Affordable Housing Fund loan in the amount of $700,000 to assist with construction costs for Tiburon Place, a 68-unit affordable housing project located at 3750 Bullock Lane; and 2. Adopt a Resolution (Attachment B) approving an Affordable Housing Fund loan in the amount of $1,300,000 ($1,500,000 requested) to assist with construction costs for Broad Street Place, a 40-unit affordable housing project located at 3720 Broad Street. DISCUSSION Background – City’s Affordable Housing Fund The City’s Affordable Housing Fund (AHF) receives funding from commercial and residential developers to meet the City’s Inclusionary Housing Ordinance “in-lieu” of those developers providing actual housing units within their projects. State planning and zoning law requires the fund to be used only for the purpose that it was established – to support affordable housing in the City of San Luis Obispo. These funds are awarded at the City Council’s sole discretion, based on previously adopted criteria (Attachment C). Requests for AHF support are evaluated by staff and forwarded to the City Council for consideration. The projects requesting funds are described below and are both evaluated for how they meet these criteria and why they are recommended for funding. REQUEST FOR TIBURON PLACE AT 3750 BULLOCK LANE Overview of Request Peoples’ Self-Help Housing Corporation (PSHHC) is requesting an allocation of $700,000 in AHFs for the Tiburon Place Project (Attachment D). The Tiburon Place Project will be located within the City’s Orcutt Area. To comply with the City’s inclusionary housing requirements for Tract #3063 (Righetti Ranch), Tract #3066 (Jones Ranch), Tract #3095 (Imel Tract), and the Pratt Property, 54 units were approved to be dedicated to PSHHC for construction, as referenced in the Affordable Housing Agreement and Declaration Item 5 Packet Page 55 of Restrictive Covenants, recorded on July 28, 2017 as Document No. 2017033670 (Attachment E). The 54 units dedicated to PSHHC initially included 42 units available to 80% Area Median Income (AMI), or a “low” income level of affordability, and 12 units available to 120% AMI or “moderate” income level of affordability. However, PSHHC is developing the Tiburon Place Project with a total of 68 affordable units, which is 14 units beyond the original requirement. Additionally, it is increasing the affordability level of these units, such that the project will provide units available to 30% to 60% AMI, or extremely low, very low, and low-income residents. The number of units and deep affordability proposed warrants the City’s consideration of an Affordable Housing Fund award. The requested amount of $700,000 from the City’s AHF will assist PSHHC to compete with applications for additional funding sources, including to the State’s Affordable Housing Sustainable Communities program, California Tax Credit Committee, and California Debt Limit Allocation Committee. Since Tiburon Place Project proposes 68 affordable housing units, 14 units beyond the 54 originally required by the inclusionary housing requirement for the four residential developments in the Orcutt Area, this AHF allocation will ensure deeper affordability levels for the community. The table below displays this significant added value Tiburon Place proposes, in relation to the original Orcutt Area requirement. Orcutt Area Inclusionary Housing Requirement for Tracts #3063, #3066, #3095, and the Pratt Property Proposed Affordability Level Affordability Level AMI Target Units Provided AMI Target Units Provided Unit Type Distribution Extremely Low Income 30% 30% 15 4 Studios, 5 1- bedrooms, 6 2- bedrooms Very Low Income 45% 45% 8 2 Studios, 3 1- bedrooms, 3 2- bedrooms Very Low Income 50% 50% 6 2 Studios, 2 1- bedrooms, 2 2- bedrooms Low Income 55% 55% 8 2 Studios, 3 1- bedrooms, 3 2- bedrooms Low Income 60% 60% 30 6 Studios, 12 1- bedrooms, 12 2- bedrooms Low Income 80% 42 80% Moderate Income 120% 12 120% Total 54 68 Item 5 Packet Page 56 Award Criteria In making its recommendations to City Council for how AHFs should be allocated, staff considers Council adopted criteria including: eligibility, need, suitability, timing, financial effectiveness, and readiness. The following is an analysis of the request relative to the criteria. Eligibility. Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: The Tiburon Place Project is eligible for AHFs because it increases the City’s affordable housing inventory and implements several General Plan policies regarding housing. The Tiburon Place Project will increase the supply of affordable housing for extremely low, very low, and low-income households with the construction of 68 units, which provides 14 additional units and deeper affordability than City requirements for this project site. Need. There exists a substantial or overarching need for the type of unit to be assisted, as follows: By proposing 68 units, PSHHC is exceeding the required inclusionary units by 14 units - a 25% increase. Housing needs in general are growing along the coastal areas and this is particularly true for lower income households. The City of San Luis Obispo will benefit greatly from this development because of the increased density that comes with the proposal as well as the deeper AMI targeting displayed in the table above. Suitability. The project to be assisted is appropriate for its location both in terms of land use and design, as follows: The Tiburon Place Project is ideally suited for this location, both in terms of land use and design. The Orcutt Area Specific Plan (OASP) has given due attention to meeting the needs of the lower income residents of the City. The rental housing proposed for this funding will serve to implement the goals set by the OASP as well as fulfilling the City’s Regional Housing Needs Allocation (RHNA) goals. Timing. The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: The Tiburon Place Project has received all local approvals and is preparing to submit for building permit applications. PSHHC has also been working closely with the owner of the various Tracts the inclusionary housing requirement is associated with, Righetti Ranch LP, on donating the land and preliminary site planning related to the Tiburon Place Project’s location. Item 5 Packet Page 57 Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: This is a highly effective use of the City's AHFs, as it will leverage additional funding sources as they demonstrate local support and commitment to the development. These funding sources include the Federal Home Loan Bank’s Affordable Housing Program (AHP), federal HOME and CDBG funds, and the State’s Affordable Housing Sustainable Communities grant program. Tiburon Place Project financial feasibility is dependent upon AHFs. Readiness. The project has all necessary City approvals and is ready to proceed, as follows: PSHHC has obtained all the necessary City discretionary approvals for the Tiburon Place Project. Upon the award of City AHFs, PSHHC will be eligible to apply for additional public funding programs and other private activity bond financing. Should the project receive all funding, PSHHC anticipates starting construction in 2020. REQUEST FOR BROAD STREET PLACE AT 3720 BROAD STREET Overview of Request PSHHC is also requesting an allocation of $1,500,000 in AHFs for the construction of its Broad Street Place Project (Attachment F). It will be located on Broad Street, across from Damon- Garcia Sports Fields, and will include both residential and commercial uses. The Broad Street Place Project contains 40 units, that will be affordable to extremely low, very low, and low- income households. The residential units will consist of both 1-bedroom, 2-bedroom, and 3- bedrooms, which is further displayed in the following table. Affordability Level AMI Target Units Provided Unit Size Distribution Extremely Low Income 30% 5 1 1-bedroom, 2 2-bedrooms, 2 3- bedrooms Very Low Income 45- 50% 24 5 1-bedroom, 14 2-bedrooms, 5 3- bedrooms Low Income 60% 10 4 1-bedroom, 3 2-bedrooms, 3 3- bedrooms Manager’s Unit 1 1 3-bedroom Total 40 However, staff is recommending allocating a total of $1,300,000 in AHFs to the construction of Broad Street Place. An award of $1,300,000 is consistent with the City’s historic average AHF awards for affordable housing construction costs. Additionally, an award of $1,300,000 will allow for the City to maintain a healthy buffer of available AHF dollars for future funding requests in the upcoming year. Item 5 Packet Page 58 Award Criteria The following is an analysis of the request relative to the Award Criteria, previously explained above. Eligibility. Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: The Broad Street Place Project is eligible for AHFs because it increases the City’s affordable housing inventory and implements several General Plan policies regarding housing. The project will increase the supply of affordable housing for extremely low, very low, and low-income households with the construction of 40 units. Need. There exists a substantial or overarching need for the type of unit to be assisted, as follows: By proposing 40 units, PSHHC will be significantly contributing to the City’s RHNA allocation for the extremely low, very low, and low-income categories. Housing needs in general are growing along the coastal areas and this particularly true for lower income households. The City of San Luis Obispo will benefit greatly from this development because of the increased density that comes with the proposal as well as the deeper AMI targeting displayed in the table above. Suitability. The project to be assisted is appropriate for its location both in terms of land use and design, as follows: The Broad Street Place Project is designed to be consistent with the character of the neighborhood, taking cues from the adjacent Iron Works affordable housing development as well as other commercial, industrial, and residential buildings in the vicinity. The development of this parcel will improve a vacant and underutilized property in an urbanized area in the City and enhance the Broad Street corridor by creating new mixed- income and affordable rental housing opportunities, as well as new high-quality commercial space for small businesses along the Broad Street frontage. Timing. The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: The Broad Street Place Project has received all local approvals and is preparing to submit for a building permit application. PSHHC is ready to receive local funds to assist in leveraging competitiveness for California low income tax credits, when they apply in July 2020. As PSHHC moves forward with retaining additional funding sources, commitment of local funds enhances the time-value of financing; realizing a project sooner rather than later, with all associated due diligence review and analysis, represents potential cost savings related to the local community investment. Item 5 Packet Page 59 Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: In terms of financial feasibility, early commitment of local affordable housing funds is important. These funds provide basis for attracting additional funding sources as they demonstrate local support and commitment to the development. Along with other forms of shallow subsidies such as, the Federal Home Loan Bank’s Affordable Housing Program (AHP), federal HOME and CDBG funds, and other potential resources, they serve as leverage for significant sources such as tax credit financing. All tax credit funding applications score maximum points with respect to project scoring criteria, the ultimate tiebreaker is the amount of commitment of additional financing from other resources. Tax credit financing often represents upwards of 50% plus of overall project financing and the amount of tax credits awarded a project is underwritten in the context of the “gap” between committed funds and total development costs. To leverage tax credit funding is of great community benefit and in some measure may be up to a 1-to-10 ratio between what local fund and other project financial resources. Thus, the Broad Street Place Project’s financial feasibility is dependent upon City AHFs. Readiness. The project has all necessary City approvals and is ready to proceed, as follows: PSHHC has obtained all the necessary City discretionary approvals for the Broad Street Place Project. Upon the award of a City AHFs, PSHHC will be eligible to apply for additional public funding programs and other private activity bond financing. Should the project receive all funding, PSHHC anticipates starting construction in 2020. 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. ENVIRONMENTAL REVIEW The project to award affordable housing funds is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen with certainty that the proposed action to award grant funding will have no significant effect on the environment. Item 5 Packet Page 60 FISCAL IMPACT Budgeted: No Budget Year: 2019-2020 Funding Identified: Yes Fiscal Analysis: Funding Sources Funding Requested (Tiburon Place) Funding Requested (Broad Street Place) Funding Recommended (Tiburon Place) Funding Recommended (Broad Street Place) General Fund State Federal Fees Other: City AHF $700,000 $1,500,000 $700,000 $1,300,000 Total $2,200,000 $2,000,000 The Affordable Housing Fund has a current balance of $2,421,000 and can support staff’s recommendation, leaving a buffer of funds for additional projects staff anticipates requests for in the coming year. However, given the level of available funding and in consideration of typical award amounts, staff’s recommendation is lower than the original request from PSHHC for Broad Street Place. The decision to award $1,300,000 rather than the request of $1,500,000 is consistent with previous AHF awards for affordable housing construction costs. Subsequent communication with PSHHC lead to the recommendation to fully allocate the requested funding for the Tiburon Place Project and lowering the allocation to Broad Street Place as outlined in the recommendation. If these recommendations are approved by the City Council, the AHF will retain $421,000 of available funds for assistance with future affordable housing projects. Current development activity also indicates that additional impact fees will be collected in the AHF, which will increase the available funding over time. The recommended allocations would be in the form of loans paid out of the AHF, which consists of in-lieu fees collected under the City’s Inclusionary Housing Ordinance. The AHF may only be used for projects or purposes that create or support affordable housing within the City. The project will have no impact on the General Fund. AHF loans typically have a 20 to 30-year term with a rate of 3-4% simple interest. The details of each loan will be finalized prior to release of funds and structured specific to each project’s financing package. Item 5 Packet Page 61 ALTERNATIVES 1. Do not authorize AHF awards for the proposed projects. This action is not recommended because both the projects meet all of the criteria for AHF assistance and are consistent with the Housing Element of the General Plan. 2. Approve AHF awards in different amounts. The City Council can approve awards in different amounts other than the recommendations. This is not recommended as both projects have carefully considered their need for assistance and the amounts requested reflect what is needed for successful financing of the projects. 3. Continue consideration of the proposed awards. The City Council can direct staff to return with additional information regarding the funding request so that a final decision on the different award amounts can be made. Staff does not recommend this action because this delay in time would not allow for PSHHC to include the City’s commitment for funding in their various additional funding applications. Attachments: a - Draft Resolution - Tiburon Place AHF b - Draft Resolution - Broad Street Place AHF c - Affordable Housing Fund Criteria d - Tiburon Place AHF Request Letter e - COUNCIL READING FILE - Affordable Housing Agreement and Declaration of Restrictive Covenant 2017 f - Broad Street Place AHF Request Letter Item 5 Packet Page 62 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING FUND AWARD TO PEOPLES’ SELF-HELP HOUSING CORPORATION FOR TIBURON PLACE IN THE AMOUNT OF $700,000. WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on January 21, 2020, for the purpose of considering a request for Affordable Housing Fund (AHF) assistance; and WHEREAS, the proposed project, Tiburon Place, by Peoples’ Self-Help Housing Corporation (PSHHC) meets the award eligibility criteria established by the City Council; and WHEREAS, Housing Element policies and programs encourage and support the construction of new 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; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council does hereby make the following findings in support of the proposed AHF awards: 1. Eligibility: Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: Tiburon Place is eligible for Affordable Housing Funds because it increases the City’s affordable housing inventory and implements several General Plan policies regarding housing. The project will increase the supply of affordable housing for extremely low, very low, and low-income households with the construction of 68 units. 2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: By proposing 68 units, PSHHC is exceeding the required inclusionary units by 14 units - a 25% increase. Housing needs in general are growing along the coastal areas and this is particularly true for lower income households. San Luis Obispo will benefit greatly from this development because of the increased density that comes with the proposal as well as deeper AMI targeting. Item 5 Packet Page 63 Resolution No. _____ (2020 Series) Page 2 R ______ 3. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: The Tiburon Place is ideally suited for this location, both in terms of land use and design. The Orcutt Area Specific Plan (OASP) has given due attention to meeting the needs of the lower income residents of the City. The rental housing proposed for this funding will serve to implement the goals set by the OASP as well as fulfilling the City’s Regional Housing Needs Allocation (RHNA) goals. 4. Timing: The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: Tiburon Place has received all local approvals and is preparing to submit for building permit applications. PSHHC has also been working closely with the owner of the various Tracts the inclusionary housing requirement is associated with, Righetti Ranch LP, on donating the land and preliminary site planning related to Tiburon Place’s location. 5. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: This is a highly effective use of the City's Affordable Housing Funds, as it will leverage additional funding sources as they demonstrate local support and commitment to the development. These funding sources include the Federal Home Loan Bank’s Affordable Housing Program (AHP), federal HOME and CDBG funds, and the State’s Affordable Housing Sustainable Communities grant program. Project financial feasibility is dependent upon Affordable Housing Funds. 6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: PSHHC has obtained all the necessary City discretionary approvals for Tiburon Place. Upon the award of a City Affordable Housing Fund award, PSHHC will be eligible to apply for additional public funding programs and other private activity bond financing. Should the project receive all funding, PSHHC anticipates starting construction in 2020. SECTION 2. Environmental Determination. The project to award affordable housing funds is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen with certainty that the proposed action to award grant funding will have no significant effect on the environment. Item 5 Packet Page 64 Resolution No. _____ (2020 Series) Page 3 R ______ SECTION 3. AHF Award for Peoples’ Self-Help Housing Corporation. The City Council does hereby approve an AHF award in an amount not to exceed $700,000, subject to the following condition of approval: 1. Prior to release of any portion of the AHF award, the applicant shall enter into an affordability agreement with the City for sixty-eight (68) for-rent affordable housing units located at 3750 Bullock Lane for a term of fifty-five (55) years, which will be recorded against the title of the property. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this __________ day of ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 5 Packet Page 65 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING FUND AWARD TO PEOPLES’ SELF-HELP HOUSING CORPORATION FOR BROAD STREET PLACE IN THE AMOUNT OF $1,300,000. WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on January 21, 2020, for the purpose of considering a request for Affordable Housing Fund (AHF) assistance; and WHEREAS, the proposed project, Broad Street Place, by Peoples’ Self-Help Housing Corporation (PSHHC) meets the award eligibility criteria established by the City Council; and WHEREAS, Housing Element policies and programs encourage and support the construction of new 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; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council does hereby make the following findings in support of the proposed AHF awards: 1. Eligibility: Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: Broad Street Place is eligible for Affordable Housing Funds because it increases the City’s affordable housing inventory and implements several General Plan policies regarding housing. The project will increase the supply of affordable housing for extremely low, very low, and low-income households with the construction of 40 units. 2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: By proposing 40 units, PSHHC will be significantly contributing to the City’s RHNA allocation for the extremely low, very low, and low-income categories. Housing needs in general are growing along the coastal areas and this particularly true for lower income households. San Luis Obispo will benefit greatly from this development because of the increased density that comes with the proposal as well as deeper AMI targeting. Item 5 Packet Page 66 Resolution No. _____ (2020 Series) Page 2 R ______ 3. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: Broad Street Place is designed to be consistent with the character of the neighborhood, taking cues from the adjacent Iron Works affordable housing development as well as other commercial, industrial, and residential buildings in the vicinity. The development of this parcel will improve a vacant and underutilized property in an urbanized area in the City and enhance the Broad Street corridor by creating new mixed-income and affordable rental housing opportunities, as well as new high quality commercial space for small businesses along Broad Street frontage. 4. Timing: The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: Broad Street Place has received all local approvals and is preparing to submit for a building permit application. PSHHC is ready to receive local funds to assist in leveraging competitiveness for California low income tax credits, when they apply in July 2020. As PSHHC moves forward with retaining additional funding sources, commitment of local funds enhances the time-value of financing; realizing a project sooner rather than later, with all associated due diligence review and analysis, represents potential cost savings related to the local community investment. 5. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: In terms of financial feasibility, early commitment of local affordable housing funds is important. These funds provide basis for attracting additional funding sources as they demonstrate local support and commitment to the development. Along with other forms of shallow subsidies such as, the Federal Home Loan Bank’s Affordable Housing Program (AHP), federal HOME and CDBG funds, and other potential resources, they serve as leverage for significant sources such as tax credit financing. All tax credit funding applications score maximum points with respect to project scoring criteria, the ultimate tiebreaker is the amount of commitment of additional financing from other resources. Tax credit financing often represents upwards of 50% plus of overall project financing and the amount of tax credits awarded a project is underwritten in the context of the “gap” between committed funds and total development costs. To leverage tax credit funding is of great community benefit and in some measure may be up to a 1-to- 10 ratio between what local fund and other project financial resources. Thus, the development’s financial feasibility is dependent upon City Affordable Housing Funds. Item 5 Packet Page 67 Resolution No. _____ (2020 Series) Page 3 R ______ 6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: PSHHC has obtained all the necessary City discretionary approvals for Broad Street Place. Upon the award of a City Affordable Housing Fund award, PSHHC will be eligible to apply for additional public funding programs and other private activity bond financing. Should the project receive all funding, PSHHC anticipates starting construction in 2020. SECTION 2. Environmental Determination. The project to award affordable housing funds is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen with certainty that the proposed action to award grant funding will have no significant effect on the environment. Item 5 Packet Page 68 Resolution No. _____ (2020 Series) Page 4 R ______ SECTION 3. AHF Award for Peoples’ Self-Help Housing Corporation. The City Council does hereby approve an AHF award in an amount not to exceed $1,300,000, subject to the following condition of approval: 1. Prior to release of any portion of the AHF award, the applicant shall enter into an affordability agreement with the City for forty (40) for-rent affordable housing units located at 3720 Broad Street for a term of fifty-five (55) years, which will be recorded against the title of the property. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this _________ day of _____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 5 Packet Page 69 Item 5 Packet Page 70 Item 5 Packet Page 71 Item 5 Packet Page 72 Item 5Packet Page 73 Item 5Packet Page 74 Item 5Packet Page 75 Item 5Packet Page 76 3533 Empleo Street, San Luis Obispo, CA 93401 (805) 781-3088 phone • (805) 544-1901 fax info@pshhc.org • www.pshhc.org 26 E. Victoria Street, Santa Barbara, CA 93101 (805) 962-5152 phone • (805) 962-8152 fax info@pshhc.org • www.pshhc.org October 10, 2019, Cara Vereschagin Housing Coordinator 919 Palm Street San Luis Obispo, CA 93401 RE: Peoples’ Self-Help Housing - Broad Street Place Apartments - City In -Lieu Funds Request OVERVIEW Peoples’ Self-Help Housing (PSHH) is proposing a 100% affordable residential apartment project consisting of 40 units. We are submitting this request to assist in developing the parcel and to provide affordable housing options for members of the community. The project site is located at 3720 Broad Street in the City of San Luis Obispo. It is 59,220 sf (1.36 ac) in size, flat (<5% average slope), generally rectangular shaped, and currently vacant and undeveloped. The lot was created as par t of a Minor (4 -lot) Subdivision approved per Resolution 13-02 and recorded on January 31, 2014, and has access via a 40’ wide shared private driveway. The parcel is zoned Service Commercial with a Special Considerations overlay (C -S-S). Residential uses are permitted as part of mixed use projects in this zone at a density up to 24 units per acre. The surrounding area along Broad Street is developed with a wide variety of uses including single- and multi-family residential, neighborhood serving retail, restaurants and services, commercial office and manufacturing uses, and recreational uses. The p roperty immediately north of the site across the shared private driveway is zoned C -S-S and was recently built for the development of the Iron Works. The mixed-use development consists of 46 affordable rental apartments and approximately 4,000 sf of commercial space. The property immediately east of the site is zoned C-S-S and is developed with an existing commercial building occupied by the Plumbers and Steamfitters Union Local 403 offices. Affordability The project will provide 40 units, which will be 100% affordable. The unit mixtures will range from 1- bedroom, 2-bedroom and 3 -bedroom units. The project will target income levels of extremely low, to low income. The Area Medium Income (AMI) targets will range between 30% AMI – 60% AMI. A table providing affordability statics has been provided below. Item 5 Packet Page 77 3533 Empleo Street, San Luis Obispo, CA 93401 (805) 781-3088 phone • (805) 544-1901 fax info@pshhc.org • www.pshhc.org 26 E. Victoria Street, Santa Barbara, CA 93101 (805) 962-5152 phone • (805) 962-8152 fax info@pshhc.org • www.pshhc.org Figure 1: Affordability AMI Target Units provided Unit size Extremely Low Income 30% AMI 1 1 -Bedroom Extremely Low Income 30% AMI 2 2 -Bedroom Extremely Low Income 30% AMI 2 3 -Bedroom Very Low Income 45% AMI 2 1 -Bedroom Very Low Income 45% AMI 4 2 -Bedroom Very Low Income 45% AMI 2 3 -Bedroom Very Low Income 50% AMI 3 1 -Bedroom Very Low Income 50% AMI 10 2 -Bedroom Very Low Income 50% AMI 3 3 -Bedroom Low Income 60% AMI 4 1 -Bedroom Low Income 60% AMI 3 2 -Bedroom Low Income 60% AMI 3 3 -Bedroom Manager`s Unit 1 3 -Bedroom Density and Unit Mix The project proposes 40 affordable apartments in two separate buildings for a density of 24 units per acre. The buildings will be three and two -story structures with a maximum height of approximately 35 feet. The total number, type, and approximate square footage of each unit is outlined in Figure 2 below. Figure 2: Bedrooms Square Feet # of Units 1 544 10 2 764 19 3 976 11 Total 40 Item 5 Packet Page 78 3533 Empleo Street, San Luis Obispo, CA 93401 (805) 781-3088 phone • (805) 544-1901 fax info@pshhc.org • www.pshhc.org 26 E. Victoria Street, Santa Barbara, CA 93101 (805) 962-5152 phone • (805) 962-8152 fax info@pshhc.org • www.pshhc.org FUNDING REQUEST PSHHC requests an allocation of $1,500,000 in city in-lieu funds to lend financial support to the development, representing approximately $38,461/per unit for the 39 units. This local commitment of funding will serve as basis for PSHHC to apply for additional affordable housing resources from state, federal and private entities to complement the overall projected development budget. The local funds will strengthen competitiveness of a future application to the State of California Tax Credit Committee (TCAC). ELIGABILITY Production housing for this project will advance the City`s goals with regard to the General Plan Housing Element Regional Housing Needs Assessment (RHNA). In addition, the following are related policies and goals found in the City of San Luis Obispo 2014-2019 General Plan Housing Element. These policies and goals which the project is consistent with will assist the City achieve its General Plan Housing Element and sustainability goals. • Policy 2.4 - Encourage housing production for all financial strata of the City's population, in the proportions shown in the in the Regional Housing Needs Allocation, for the 2014-2019 planning period. These proportions are: extremely low income, I 2 percent; very low income, 12 percent; low income, 16 percent; moderate income 18 percent; above moderate income, 42 percent. • Goal 4 Mixed Income Housing - Preserve and accommodate existing and new mixed income neighborhoods and seek to prevent neighborhoods or housing types that are segregated by economic status. • Policy 5.4 - In general, housing developments of twenty (20) or m ore units should provide a variety of dwelling types; sizes or forms of tenure. • Policy 6. 19 - Continue to incentivize affordable housing development with density bonuses, parking reductions and other development incentives, including City financial assistance. • Goal I 0: Maximize affordable housing opportunities for those who live or work in San Luis Obispo while seeking to balance job growth and housing supply. The project is consistent with the above General Plan Housing Element goals and policies as it will create 40 critically needed, below market rate housing opportunities for employees of the SLO-based companies. It will help local businesses attract and retain talented employees, help improve the jobshousing imbalance, develop an underutilized vacant lot in an urbanized location in the City, and serve as a model for smart-growth and affordable housing throughout the region. Furthermore, the range of unit types from one-bedroom to three-bedroom units will appeal to people of different ages and with a wide ranges of income levels in an integrated enclave and community. The project will be attractively designed with high-quality buildings and housing units offering private balconies and porches as well as common open courtyards and recreation space. F or these reasons, the project is in conformance with the Housing Element policies and will contribute to achieving the City`s goals. Item 5 Packet Page 79 3533 Empleo Street, San Luis Obispo, CA 93401 (805) 781-3088 phone • (805) 544-1901 fax info@pshhc.org • www.pshhc.org 26 E. Victoria Street, Santa Barbara, CA 93101 (805) 962-5152 phone • (805) 962-8152 fax info@pshhc.org • www.pshhc.org NEED By proposing 40 units, we are contributing to the City of San Luis Obispo`s RHNA allocation. The City of San Luis Obispo’s 2014-2019 Housing Element, demonstrates a RHNA allocation in the aggregate production of 285 new multi-family residences. The proposal of 40 apartment units represents new production of roughly 14% of the RHNA need for extremely low and low -income categories. Housing needs, in general are growing along coastal areas and this is particularly true for lower income households. All but one (managers unit) of the 40 units proposed will be dedicated to serve low or very low income residents, San Luis Obispo will benefit greatly from this development because of the increased density that comes with our proposal as well as the deeper AMI targeting shown in Figure 1 above. PSHH ensures a highly qualified affordable housing provider and case management service provider will oversee these affordable units and establish successful long term operating standards and resident amenities. All affordable rental units are deed restricted for 55 years. SUITABILITY The project is designed to be consistent with the character of the neighborhood, taking cues from the adjacent Iron Works project as well as other commercial, industrial and residential buildings in the vicinity. The development of this parcel will improve a vacant and underutilized p roperty in an urbanized area in the City, and enhance the Broad Street corridor by creating new mixed-income and affordable rental housing opportunities, as well as new high quality commercial space for small businesses along Broad Street frontage. As des igned the project is consistent with the general plan and compatible surroundings. The project will help improve the jobs-housing imbalance, increase vibrancy and walkability along Broad Street, reduce vehicle miles travelled, and help to improve regional sustainability. TIMING With the project having Planning Commission approval, PSHH is awaiting approval from the ARC for the modification submitted on September 24, 2019. PSHH is ready to receive local funds to assist in leveraging competiveness for the projects tax credit application. The project is expected to apply for tax credits in July 2020 if local funds are secured to assist in boosting competiveness scoring and the project receives ARC approval by end of year 2019. As PSHH moves forward with retaining additional funding sources, commitment of local funds supports these applications and enhances the time-value of financing; realizing a project sooner rather than later, with all associated due diligence review and analysis, represents potential cost savings related to the local community investment. Item 5 Packet Page 80 3533 Empleo Street, San Luis Obispo, CA 93401 (805) 781-3088 phone • (805) 544-1901 fax info@pshhc.org • www.pshhc.org 26 E. Victoria Street, Santa Barbara, CA 93101 (805) 962-5152 phone • (805) 962-8152 fax info@pshhc.org • www.pshhc.org FINANCIAL EFFECTIVENESS In terms of financial feasibility, early commitment of local affordable housing funds is important. These funds provide basis for attracting additional funding sources as they demonstrate local support and commitment to the development. Along with other forms of shallow subsidies such as, the Federal Home Loan Bank’s Affordable Housing Program (AHP), federal HOME and CDBG funds, and other potential resources, they serve as leverage for significant sources such as tax credit financing . All tax credit funding applications score maximum points with respect to project scoring criteria, the ultimate tie-breaker is the amount of commitment of additional financing from other resources. Tax credit financing often represents upwards of 50% plus of overall project financing and the amount of tax credits awarded a project is underwritten in the context of the “gap” between committed funds and total development costs. To leverage tax credit funding is of great community benefit and in some measure may be up to a 1-to- 10 ratio between what local fund and other project financial resources. READINESS On October 25, 2017 the Planning Commission approved Use-1094 -2017 based on resolution number PC-1011-17. The project was approved as a mixed use condominium project with a 9% density bonus to be developed at 3720 Broad Street. The project includes 1,288 square feet of commercial space fronting Broad Street, and 40 residential units approved as for sale units. The project satisfied all land use requirements consistence with the City of San Luis Obispo. A CEQA determination has been made for the project through its original entitlements approved on October 25, 2017. On September 24, 2019 PSHH submitted for a modification to the existing land use permit approval to allow for 40 affordable rental units and 1,250 square feet of commercial space. The proposed project is consistent with the previously approved entitlements and does not increase unit counts. The majority of change is the result of for sale units being converted to rental units and building design. The project is subject to ARC review, however the project has already received approval from the planning commission as previously approved on October 25, 2017. The project is ready to receive commitment of in-lieu funds. If you should have any questions or concerns please feel free to contact me. Thank you for your cooperation. Sincerely, Steven Orozco Project Manager 805-234-9504 Item 5 Packet Page 81 Page intentionally left blank. Item 5 Packet Page 82 Department Name: Community Development and Public Works Cost Center: 4007, 5010, 5301 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Shelly Stanwyck, Assistant City Manager – Community Services Prepared By: Cara Vereschagin, Housing Coordinator Brian Nelson, Supervising Civil Engineer Wyatt Banker-Hix, Engineer II SUBJECT: AUTHORIZATION TO PURSUE STATE AND FEDERAL AFFORDABLE HOUSING, TRANSPORTATION, AND WATER QUALITY GRANT FUNDING RECOMMENDATION 1. Adopt a Resolution (Attachment A) authorizing (1) the City as a Participating Entity in the Application to be submitted by Peoples’ Self-Help Housing Corporation (PSHHC) to apply for the Affordable Housing Sustainable Communities (AHSC) grant program to the California Department of Housing and Community Development (HCD) for an estimated $3 million for sustainable transportation infrastructure projects and transportation related amenities; and (2) to execute certain documents with PSHHC for the submittal of the AHSC Program Application, in connection with Tiburon Place, an Affordable Housing Project at 3750 Bullock Lane; and 2. Adopt a Resolution (Attachment B) authorizing a proposal for funding from the Department of Water Resources and authorizing the City Manager to execute the agreement and any amendments thereto; and 3. Authorize staff to prepare and submit State and Federal grant applications for the Prado Road Interchange Project and Mid-Higuera Bypass projects; and 4. Authorize the City Manager or designee to execute grant application documentation; and 5. Authorize the City Manager to appropriate grant funds and approve a budget amendment to reflect received grant funds, if awarded. DISCUSSION Background on Affordable Housing Sustainable Communities Grant Program and Application for Tiburon Place The AHSC Program provides competitive grants and loans to support infill and compact development projects that will achieve greenhouse gas (GHG) reductions through the development of affordable housing and related infrastructure, active transportation infrastructure, capital transit improvements, and related programming. The AHSC Program is administered by the Strategic Growth Council and implemented by the HCD. Funding for the AHSC Program is Item 6 Packet Page 83 provided from the Greenhouse Gas Reduction Fund (GGRF), which is an account established to receive Cap-and-trade auction proceeds. On November 1, 2019, HCD published a Notice of Funding Availability (NOFA), for the 5th Round of the AHSC Program, which indicates the availability of hundreds of millions of dollars for new projects across the State of California. PSHHC, a local non-profit housing developer, intends on applying for Round 5 of the AHSC Program for financial assistance to construct its affordable housing project, titled Tiburon Place, which will provide 68 new affordable housing units in the City’s Orcutt Area. Because the AHSC Program requires integration of housing and transportation-related projects, PSHHC is requesting that City staff collaborate in the grant application by identifying potential sustainable transportation infrastructure projects (STIs) and transportation related amenities (TRAs) that would be eligible for AHSC funds. Potential projects and/or amenities must be located within a mile of the Tiburon Place development in the Orcutt Area and may include investments that support sustainable transportation, such as new bicycle or pedestrian infrastructure, green stormwater treatments, and improved transit service and facilities. Staff has identified the following STI/TRA projects for this grant application, representing a total request for approximately $3 million in funds: • Railroad Safety Trail Gap Closure (Complete pedestrian//bicycle trail connection between Orcutt Road and Tiburon Road) – STI Category • Purchase of two electric transit vehicles (Additional buses to improve SLO Transit service to the Orcutt Area and affordable housing development) – TRA Category Since the AHSC Program encourages partnerships between local munici palities, transit agencies, and housing developers, both PSHHC and City staff are recommending that PSHHC apply as “Lead Applicant” to the AHSC Program, and the City be identified in the Application as a “Participating Entity,” which will (1) strengthen the Application’s overall competitiveness; and (2) allow for ease of the distribution of funds for the transportation-related projects. In order for PSHHC to submit the AHSC Program Application by the February 11, 2020 deadline, the City and PSHHC must execute an Implementation and Mutual Indemnity Agreement, identifying understandings and intentions of the expenditure of AHSC Program Funds, should the Application be awarded funding. A draft form of this Implementation and Mutual Indemnity Agreement is provided in Attachment C, which will be reviewed by the City Attorney’s office prior to execution, along with any other required documentation. Background on Prado Road Interchange and IIG and SB1 Grants The Prado Road Interchange is the proposed connection between the two halves of Prado Road. The project consists of a bridge spanning Prado Road across Highway 101, northbound ramps in the initial phase, and southbound ramps at a later phase of the project. The Prado Road Interchange will provide multimodal connectivity and traffic relief throughout the City and is essential for the development of future housing and business. The City is the lead agency and currently considering interchange types as well as producing environmental documents. Item 6 Packet Page 84 While planning-level construction cost estimates have been developed and a funding program has been established for the project, local construction costs have escalated rapidly in recent years and recent project design refinements indicate that project construction costs are likely to increase between now and the anticipated construction year of 2021-22. In anticipation of a potential future funding gap between programmed allocations and future construction costs, staff has begun exploring grant opportunities to fill that gap. Two grants have thus far been identified: The Infill Infrastructure Grant (IIG) and the Senate Bill 1 Local Partnership Program Competitive Grant (SB1). HCD administers the IIG in order to mitigate the cost of low-income housing developments. The grant provides construction cost relief to both developers and agencies based on the number of low-income units constructed. The Prado Interchange facilitates the development of low-income housing units at the San Luis Ranch development, and staff seeks authorization to pursue a grant application in a future NOFA cycle. SB1 is the omnibus bill passed and signed in 2017 providing additional funding for transportation projects. Part of that bill created a competitive grant program for agencies to fund infrastructure projects and roadway maintenance. The Prado Interchange fits the goals and objectives of this bill and could be a competitive application for grant funding. In addition to the grants above, staff will continue searching for other supplemental funding opportunities and recommend Council authorize staff to prepare and submit other State and Federal grant applications to support funding needs for this project. Background on Mid-Higuera Bypass Project and Coastal Watershed Flood Risk Reduction Grant Program The Mid-Higuera Bypass Project is located along the stretch of the San Luis Obispo Creek between Marsh Street and Madonna Road. The project will increase flood protection within the Mid-Higuera area by removing sediment from the creek, creating pathways for flood waters to return to the creek, removing barriers within the creek channel, and by creating flood bypass channels and graded benches for increased creek capacity. The project also includes the replacement of the Bianchi Lane Bridge as a creek widening component. To date, the City has been developing designs for this project through funding appropriated by the County Zone 9 Advisory Committee. Staff have begun the process of seeking supplemental funding sources to contribute to the construction of the project. This project could be competitive for the Coastal Watershed Flood Risk Reduction Grant Program. This program will fund projects in coastal areas that focus on multi-benefit flood risk reduction projects. The goal of the program is to address flood risk and public safety, enhance coastal ecosystems, including fish and wildlife habitat enhancement, and promote natural resources stewardship and public access corridors. The Mid-Higuera Bypass Project fits these grant program goals and objectives, and the City is an eligible agency to receive these funds. Item 6 Packet Page 85 In addition to the Coastal Watershed Flood Risk Reduction Grant Program, staff continue to seek supplemental funding for this project, and are recommending that Council authorize staff to prepare and submit other State and Federal grant applications to support funding needs for the Mid-Higuera Bypass Project. Policy Context Seeking alternative funding sources and applying to available grant opportunities is a theme commonly referenced throughout the City’s Housing Element. HE Goal 6 is Housing Production, which specifically states “Plan for new housing to meet the full range of community housing needs.” HE Program 6.20 states, “Continue to financially assist in the development of housing affordable to extremely-low, very-low, low or moderate income households during the planning period using State, Federal and local funding sources, with funding priority given to projects that result in the maximum housing benefits for the lowest household income levels.” Additionally, the City has made a commitment to achieving carbon neutrality by 2035 and is working on numerous initiatives including, an update to the Climate Action Plan and developing a Clean Energy Choice Program for new construction. These align with the purpose of the AHSC Program, as it is intended to help facilitate the construction of new affordable housing while providing funding for transportation improvements that encourage walking, bicycling, and transit use which ultimately reduce GHG emissions. The City’s Financial Management Manual, Section 740, requires City Council approval of all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager if delegation is allowed by the grantor agency. In particular, section 3(d) states: “For grants in excess of $5,000, prepare a Council Agenda Report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis.” Staff finds that submittal of grant applications for Mid-Higuera Bypass Project and the Prado Road Interchange Project meets the City’s Grant Management Policy outlined in Section 740 because there is an opportunity to significantly leverage available funding on balance with only modest staff time required to prepare the grant application; the proposed grant applications would result in additional priority work efforts being implemented; and, all grant administration, tracking, and reporting will be conducted in accordance with applicable City policy and any requirements specified in an awarded grant contract. Public Engagement Although this is authorization to apply for grant funding, no public engagement is required; however, public engagement will take place as part of ongoing project work, and as required by these specific grant opportunities. For example, the AHSC Program does require a level of public engagement, which is currently being conducted by PSHHC. Public comment can also be provided to the City Council through written correspondence and public comment at the meeting. Item 6 Packet Page 86 CONCURRENCE Both Community Development and Public Works staff have been collaborating since August 2019 with PSHHC staff on putting together the AHSC grant application, as it is designed to fund affordable housing and sustainable transportation development. ENVIRONMENTAL REVIEW There is no environmental review required for grant submittals. The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-20 Funding Identified: Yes Fiscal Analysis for AHSC Program: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State (AHSC Program Total) $3,000,000 Federal Fees Other: Total $3,000,000 If awarded, the AHSC Grant Program will provide critical funding in the amount of about $3 million for new sustainable transportation infrastructure and transportation related amenities in the Orcutt Area, as well as provide an anticipated $8 million directly to PSHHC for the construction of the affordable housing units. This funding will also reduce the barrier of PSHHC to seek additional major funding sources for the development of Tiburon Place. Currently, PSHHC anticipates financing Tiburon Place with AHSC Program Funds, City Affordable Housing Fund in-lieu fee dollars (only to fund the construction of specific units included that exceed the original inclusionary housing requirement for certain residential development tracts in the Orcutt Area), awards from the California Tax Credit Committee and the California Debt Limit Allocation Committee, and other private entities. Further, awards that are granted for the transportation components of the AHSC Application will be a bonus for the City by backfilling the portion of project costs that would otherwise require funding through the General Fund, Transit Fund or other local funding sources, allowing these limited local funds to be utilized for other high-priority investments in the community. Item 6 Packet Page 87 The Public Works Department has time allocated within its normal work program to prepare and submit grant applications for the Prado Road Interchange and Mid Higuera Bypass projects. If successful, these grant facilities could significantly leverage and augment construction funding. The award funding that could be contributed to each project from the identified grants are affected by factors including total grant program funding, competition for grant funds from other agencies, and project delivery timeframes. The following table lists the total program funding available, which would be divided into grants to awarded agencies. Grant Identified Total Grant Program Funding* Prop 1 Coastal Watershed Flood Risk Reduction Program $26 Million Infrastructure Infill Grant $194 Million SB1 LPP Competitive Grant $100 Million *Note: This is the total funding that other agencies would compete for in grant proposals. ALTERNATIVES 1. Continue the recommendations to a later meeting. This alternative is not recommended as the AHSC grant application is due on February 11, 2020, and this Implementation and Mutual Indemnity Agreement is a required attachment of the application. Additionally, the IIG, SB1, Coastal Watershed Flood Risk Reduction Grant Program grant applications are due at the end of January. 2. The City Council could choose to deny the request to participate, prepare, and/or submit grant applications. This alternative is not recommended because these grants would provide critical supplemental funding sources for projects in the City. Attachments: a - Draft Resolution - AHSC Application b - Draft Resolution - Prop 1 Grant Application c - AHSC Implementation and Mutual Indemnity Agreement Item 6 Packet Page 88 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA: (1) AUTHORIZING THE CITY AS A PARTICIPATING ENTITY IN THE APPLICATION TO BE SUBMITTED BY PEOPLES’ SELF-HELP HOUSING CORPORATION, UNDER THE STATE OF CALIFORNIA’S AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM; AND (2) TO EXECUTE CERTAIN DOCUMENTS WITH PSHHC FOR THE SUBMITTAL OF THE AHSC PROGRAM APPLICATION; IN CONNECTION WITH TIBURON PLACE, AN AFFORDABLE HOUSING PROJECT AT 3750 BULLOCK LANE IN THE CITY WHEREAS, the State of California, the Strategic Growth Council (“SGC”) and the Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability dated November 1, 2019 (the “NOFA”), under the Affordable Housing and Sustainable Communities (“AHSC”) Program established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200; and WHEREAS, Peoples’ Self-Help Housing Corporation (“PSHHC or “Lead Applicant”) desires to apply for AHSC Program funds and submit the Application Package released by HCD for the AHSC Program; and WHEREAS, the SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program guidelines, Application Package, and Standard Agreement. HCD is authorized to administer the approved funding allocations of the AHSC Program; and WHEREAS, PSHHC wishes to receive funding to assist with: (A) the construction of Tiburon Place affordable housing project in San Luis Obispo, California (“Housing Project”); (B) the construction of certain housing related infrastructure (“HRI Improvements”); (C) the construction of certain sustainable transportation infrastructure (“STI Improvements”); (D) the construction of certain transit related amenities (“TRA Improvements”); and (E) certain costs related to program service and implementation (“AHSC Programs”); and WHEREAS, PSHHC will serve as Lead Applicant of the AHSC Program and has requested the City of San Luis Obispo (“City”) to be identified in the AHSC Program Application as a “Participating Entity” in part as required through the NOFA; and WHEREAS, as required by the NOFA, the Lead Applicant and Participating Entity must execute a AHSC Implementation and Mutual Indemnity Agreement (“Agreement”), identifying understandings and intentions of the expenditure of AHSC Program Funds for the approved AHSC Program Application; and Item 6 Packet Page 89 Resolution No. _____ (2020 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. AHSC Program Participation. The Council hereby authorizes the City to be designated as a Participating Entity in the AHSC Program Application and authorizes City staff to work with the Lead Applicant, in order for Lead Applicant to apply for and submit to HCD the AHSC Program Application, as detailed in the NOFA, in an aggregate amount of $13,993,144, for the funding of: (A) the Housing Project; (B) the HRI Improvements; (C) the STI Improvements; (D) the TRA Improvements; and (E) the AHSC Programs. SECTION 2. Execution of Documents. The Council hereby authorizes the Community Development Director, the Public Works Director, or their designees, to execute the Agreement with PSHHC, as well as any other documents required or deemed necessary or appropriate for PSHHC to secure AHSC Program Funds from HCD, and all amendments thereto. SECTION 3. Eligible Activities. If the application for the AHSC Program is approved for funding to Lead Applicant, the City hereby agrees to work with PSHHC to expend the AHSC Program Funds for the eligible activities in the manner agreed upon in the Agreement, also presented in the AHSC Program Application as approved by HCD and in accordance with the AHSC Program guidelines as cited above. Item 6 Packet Page 90 Resolution No. _____ (2020 Series) Page 3 R ______ SECTION 4. Environmental Determination. No environmental review is required for grant submittals, per Section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen with certainty that the proposed action of PSHHC to apply for grant funding will have no significant effect on the environment. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this __________ day of ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 6 Packet Page 91 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING A PROPOSAL FOR FUNDING BE SUBMITTED TO THE DEPARTMENT OF WATER RESOURCES AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY AMENDMENTS THERETO, FOR THE MID- HIGUERA BYPASS PROJECT WHEREAS, the City of San Luis Obispo (“City”) is responsible for and has authority over (e.g. flood management, ecosystem management, water quality management) in the area proposed for the Mid-Higuera Bypass Project (“Project”) and is willing to participate in, coordinate, and collaborate with other interested parties that are participating in the devel opment of the Project; and, WHEREAS, the City is authorized to submit a proposal to obtain funding for the Project from the Department of Water Resources and the State of California; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows; SECTION 1. That pursuant and subject to all of the terms and conditions of the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1; Wat. Code, § 79700 et seq.), the City shall submit a proposal to obtain funding for the Project from the Department of Water Resources. SECTION 2. That the City Council authorizes the City Manager, or designee, to execute a funding agreement with the Department of Water Resources and any amendments thereto, if funding is awarded to the City. SECTION 3. That the City Manager, or designee, shall prepare the necessary data, make investigations, and take other such actions as necessary and appropriate to execute the Mid - Higuera Bypass Project. Item 6 Packet Page 92 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 4. No environmental review is required for grant submittals, per Section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen with certainty that the proposed action of the City to apply for grant funding will have no significant effect on the environment. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this __________ day of ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 6 Packet Page 93 1 AHSC IMPLEMENTATION AND MUTUAL INDEMNITY AGREEMENT THIS AHSC IMPLEMENTATION AND MUTUAL INDEMNITY AGREEMENT (the “Agreement”) is made and entered into as of ________________, 2019, between the City of San Luis Obispo, a California charter city and municipal corporation (“Agency”), and Peoples’ Self- Help Housing Corporation, a California nonprofit public benefit corporation (“Developer”, and collectively with the Agency, the “Parties”, or individually, a “Party”), upon the basis of the following facts, understanding and intentions of the parties: A. The State of California, the Strategic Growth Council (“SGC”) and the Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability dated November 1, 2019 (the “AHSC NOFA”), under the Affordable Housing and Sustainable Communities (“AHSC”) Program established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200. B. Developer is applying for AHSC Funds in response to the AHSC NOFA to provide funding for (A) construction of the Tiburon Place affordable housing project in San Luis Obispo, California (the “Housing Project”); (B) the construction of certain housing related infrastructure (the “HRI Improvements”); (C) the construction of certain sustainable transportation infrastructure (the “STI Improvements”); (D) the construction of certain transit related amenities (the “TRA Improvements”); and (E) certain costs related to program service and implementation (the “AHSC Programs”). These improvements are described in more detail in the Final Application to be submitted by February 11, 2020 (collectively, the “AHSC Application”). C. The AHSC Application seeks an award to the Developer in an aggregate amount of $13,993,144 in AHSC Funds consisting of: (A) $9,795,201of AHSC loan Funds for a permanent loan (“AHSC Loan”) which will be disbursed to a limited partnership to be formed later (the “Partnership”) for construction of the Housing Project; (B) $_____________ of AHSC grant funds shall be used for the purpose of reimbursing the cost of the HRI Improvements; (C) $___________ of the AHSC grant funds for the purpose of reimbursing the cost of the STI Improvements; (D) $___________ of AHSC grant funds for the purpose of reimbursing the cost of the TRA Improvements; and (E) $______ of AHSC grant funds for reimbursing the costs of the AHSC Programs. The AHSC grants shall be referred to collectively as the “AHSC Grants”. The AHSC Loan and the AHSC Grants are collectively referred to herein as the “AHSC Financing.” D. The Agency and Developer are required to enter into this Agreement in order to comply with the specific AHSC Program Threshold Requirement stated in Section 106 (a) 11 (A) of the 2019 AHSC Program Guidelines dated October 31, 2019 (the “Transportation Agency Prior Experience Threshold Requirement”). This section of the guidelines dictates that applicants must demonstrate prior experience by providing evidence of at least two prior projects that are similar to the proposed AHSC project in scope and size, which have been completed by the applicant, or joint applicant, during the ten (10) years preceding the application due date. This section of the guidelines also states that the applicants may demonstrate the requisite experience by using the past experience of work completed of a non-applicant so long as the applicants can provide an executed agreement with that specific non-applicant for the completion of the related Item 6 Packet Page 94 2 work in the AHSC Application for which funding is sought. The purpose of this Agreement is to, amongst other things, comply with the Transportation Agency Prior Experience Threshold Requirement. E. The Agency owns the property that the Transportation Obligations will be constructed on, and thus has sufficient “site control” as that term is defined in the AHSC Program Guidelines. [modify as needed] F. The Agency is a non-applicant, but, as set forth herein, will have obligations to perform the following specific [modify as needed] STI Improvements and TRA Improvements included in the AHSC Application (collectively, the “Transit Obligations”): 1. _________________ 2. _________________ 3. _________________ G. The Agency can demonstrate prior experience and provide evidence of at least two prior projects that are similar in scope and size which have been completed during the ten (10) years preceding Jan 16, 2018. Below is a list of these projects: 1. _______________________ 2. _______________________ H. The Agency shall be responsible for developing and constructing the Transit Obligations, and for all costs expenses related thereto, and Developer shall be responsible for constructing and developing the Housing Project and the HRI Improvements (together, the “Developer Obligations”), and for all costs and expenses related thereto. In connection with the AHSC Grants and AHSC Loan, Developer is required to enter into standard agreements, disbursement agreements, and regulatory agreements with HCD where Developer will be liable for the full and timely performance by the parties to complete the obligations set forth therein, including completion of the Housing Project, completion of the HRI, STI and TRA Improvements, and funding of the AHSC Programs, as described in the AHSC Application. The AHSC Application and all standard agreements, disbursement agreements, regulatory agreements and any other agreements required by HCD in connection with the AHSC Financing shall be collectively referred to herein as the “AHSC Documents”. I. The Agency and Developer each acknowledge and agree that the inability or failure by either party to fully and timely complete each party’s respective improvements required by the AHSC Documents may affect the timing and right of the other party to receive disbursement of AHSC funds due the other party notwithstanding the other party’s full and timely performance of its obligations. NOW, THEREFORE, in consideration of the recitals, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: Item 6 Packet Page 95 3 AGREEMENT 1. Obligations. The Agency shall, in its sole responsibility, complete the Transit Obligations in accordance with the terms of the AHSC Documents and the approved design and construction documents. The Developer shall, in its sole responsibility, complete the Developer Obligations in accordance with the terms of the AHSC Documents and the approved design and construction documents. Each Party will provide the other Party with copies of all requisitions for work related to their respective work, the notice of completion, and other documents related to their respective work that another party may reasonably request. 2. Agency Indemnity. Agency is responsible for carrying out the Transit Obligations using AHSC grant proceeds in accordance with the AHSC Documents, including, but not limited to, any disbursement deadlines contained therein. Agency shall indemnify, defend, protect, and hold harmless Developer, and its affiliates, directors, officers, partners, members, agents and employees (each, an “Developer Indemnified Party”) against any and all claims, actions, suits, causes of action, losses, liabilities, injuries, costs, damages, or expenses (collectively, “Claims”), including, without limitation, any direct, indirect or consequential loss, liability, damage, or expense, court costs and attorneys’ fees, arising out of or in connection with the Agency’s performance of or failure to perform its obligations to complete the Transit Obligations, in the manner and within the time periods, and to otherwise perform any covenants constituting Agency obligations, set forth in the AHSC Documents, including any claims, losses or liabilities of the Partnership caused by a breach or default under the AHSC Documents that triggers a default under the AHSC Loan. However, in no event shall the Developer Indemnified Party be indemnified hereunder for any Claims resulting from such party’s sole negligence or willful misconduct. Agency agrees to pay all of the Developer Indemnified Party’s costs and expenses, including attorneys’ fees, which may be incurred in any effort to enforce any term of this Agreement, including, but not limited to, all such costs and expenses which may be incurred by any Developer Indemnified Party in any legal action, reference or arbitration proceeding brought by HCD or other third party. 3. Developer Indemnity. Developer is responsible for carrying out the Developer Obligations using AHSC grant proceeds and AHSC Loan funds in accordance with the AHSC Documents, including, but not limited to, any disbursement deadlines contained. Developer shall indemnify, defend, protect, and hold harmless the Agency and its affiliates, directors, officers, partners, members, agents and employees (each, an “Agency Indemnified Party”) against any and all Claims, including, without limitation, any direct, indirect or consequential loss, liability, damage, or expense, court costs and attorneys’ fees, arising out of or in connection with Developer’s performance of or failure to perform its Developer Obligations to complete construction and development of the Housing Development, in the manner and within the time periods, and to otherwise perform any covenants, set forth in the AHSC Documents. However, in no event shall the Agency Indemnified Party be indemnified hereunder for any Claims resulting from such party’s sole negligence or willful misconduct. Developer agrees to pay all of the costs and expenses of the Agency Indemnified Party, including attorneys’ fees, which may be incurred in any effort to enforce any term of this Agreement, including, but not limited to, all such costs and expenses which may be incurred by any Agency Indemnified Party in any legal action, reference or arbitration proceeding brought by HCD or other third party. Item 6 Packet Page 96 4 4. Schedule of Performance; Progress Reports. Developer and Agency shall comply with the schedule of performance to be mutually agreed upon, as shall be set forth in the AHSC Documents, for the completion of their respective obligations hereunder (the “Schedule of Performance”). The Agency and Developer agree to give the other party a written monthly status report on the progress toward the milestones listed in the Schedule of Performance, i.e., the Developer will report on the Developer’s progress on the Housing Project, HRI Improvements and AHSC Programs, and the Agency will report on the Agency’s progress on the STI Improvements and TRA Improvements. If any Party anticipates not meeting the targeted construction and grant disbursement milestones as established in the AHSC Documents, that Party will promptly notify the other parties in writing and will meet the other Party to discuss the reasons why the milestone dates may not be met and what actions the delayed party intends to take to meet the milestones or otherwise rectify the Schedule of Performance in order to maintain good standing with the terms and conditions established in the AHSC Documents. 5. Delegation. Notwithstanding the obligations of each party under this Agreement, each party shall be entitled to enter into sub-agreements with each other or with other parties to provide any assistance or services needed for each party to perform its obligations under this Agreement and the AHSC Documents. 6. Cost Overruns. Developer shall be responsible for paying all costs required to complete the Housing Project, irrespective of whether such costs exceeds the AHSC Loan and the portion of the AHSC Grant designated for the HRI Improvements. Agency shall be responsible for paying all costs required for the Transit Obligations irrespective of whether such costs exceed the portion of the AHSC Grant designated for the Transit Obligations. 7. Developer and Partnership Step In Rights. (a) The Parties each acknowledge and agree that the inability or failure by the Agency to fully and timely complete the Transit Obligations required by the AHSC Documents may affect the timing and right of the Developer to receive disbursement of AHSC Grants or AHSC Loan funds notwithstanding the other party’s full and timely performance of its obligations. If, at any time, the Developer determines in its reasonable discretion that Agency is not, or may not, be able to comply with the Schedule of P erformance or its obligations hereunder, Developer shall have the right, but not the obligation, to step in and take over the performance of the Transit Obligations, by delivering written notice to the Agency (“Work Takeover Notice”). (b) Within five (5) business days of Developer delivering the Work Takeover Notice, Agency shall meet with Developer within fifteen (15) business days (the “Discussion Period”) to discuss the cooperative steps to be taken by each Party for Developer to complete the Transit Obligations in accordance with the Schedule of Performance. The Agency hereby acknowledges and agrees that Developer’s right to step in and take over the performance of the Transit Obligations shall be effective after the expiration of the Discussion Period, without the necessity of any further notice or action by either party. (c) If Developer takes over the performance of the Transit Obligations under this Section 7, then from and after the expiration of the Discussion Period the following provisions shall apply: Item 6 Packet Page 97 5 (i) Developer shall be entitled to prepare and submit all draw requests for AHSC Grant funds and apply such proceeds to pay invoices for such work. (ii) Developer shall be responsible for the performance and completion of the Transit Obligations in accordance with the terms of the AHSC Documents and in accordance with the Agency's requirements for public works contracts and construction. (iii) Within five (5) business days following expiration of the Discussion Period, Agency shall fully and unconditionally assign to Developer all of the Agency’s rights and benefits under the design and construction documents, any and all contracts, and any and all permits and approvals related to the Transit Obligations, and shall cooperate with commercially reasonable diligence with Developer’s efforts to complete the Transit Obligations. (iv) Within five (5) business days following expiration of the Discussion Period, Agency shall fully and unconditionally assign to Developer all of Agency’s rights and benefits with respect to any and all funds which would have been available to and used by the Agency to complete the Transit Obligations. (v) The terms of any assignment described in this Section 7(c) shall be reasonably acceptable to both Agency and Developer. The Agency shall be solely responsible for obtaining any third-party consents or approvals necessary to implement the provisions of this Section 7(c), including but not limited to approvals of architects, contractors, and funding sources. (d) The parties hereto hereby agree that the Partnership shall have the right to succeed to Developer’s rights hereunder as necessary to effectuate completion of the work under this Section 7. Under no circumstances shall such assumption by the Partnership be conditioned upon the assumption of the Partnership of any indemnification obligations contained herein, provided, however, that the Partnership will assume Developer’s indemnification obligations with respect to any subsequent breach by the Partnership under this Agreement first occurring after such assumption. 8. Disbursement of AHSC Grant Funds. Developer and Agency agree that the AHSC Grants for the Transit Obligations shall be reimbursed directly to Agency and that the AHSC Grants for the HRI Improvements shall be reimbursed directly to Developer. The parties further agree that all of the AHSC Loan funds shall be disbursed directly to the Partnership. Notwithstanding the foregoing, if required by the AHSC Documents, the Agency shall submit to Developer all draw requests for AHSC Grant funds for the costs associated with the Transit Obligations and Developer shall submit such requests to HCD and disburse to the Agency any such funds received from HCD. Agency shall apply any such proceeds received to pay the invoices submitted in connection with the draw request. 9. Implementation Agreements. In the event a grant award is received from AHSC, Developer and Agency recognize that each Party will need additional assurances from the other Parties (including assurances for the Project’s lenders and investors) regarding the specific grant Item 6 Packet Page 98 6 award before commencement of construction of the Project. The Parties agree to cooperate in amending this Agreement and/or entering into an implementation agreements or other documents necessary to provide reasonable assurances and indemnifications related to the disbursement of AHSC Grant funds. The Parties recognize that any such amendments to this Agreement or execution of additional agreements may require approval of the Agency’s Board of Directors and the Developer’s Board of Directors. 10. Notices. Formal notices, demands, and communications between the parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the parties as follows: Agency: City of San Luis Obispo ___________________ San Luis Obispo, CA ____ Attn: Developer: Peoples’ Self-Help Housing Corporation, 3533 Empleo Street San Luis Obispo, CA 93401 Attn: Ken Trigueiro 11. Events of Default. The occurrence of any of the following events shall constitute an Event of Default under this Agreement: (a) A Party fails to perform any of its obligations under this Agreement, and does not cure such failure within 30 days after written notice of such failure has been delivered to the defaulting party in accordance with Section 3 above; or (b) A Party purports to revoke this Agreement or this Agreement becomes ineffective for any reason. 12. Termination. This Agreement shall terminate upon the earlier of: (i) completion of the all obligations under the AHSC Documents; or (ii) mutual agreement of the parties hereto. 13. Third Party Beneficiary. The Partnership shall be a third party beneficiary of this Agreement and shall be entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party to this Agreement. 14. Assignment. Agency hereby acknowledges and approves the assignment by Developer and the Partnership to the Housing Project’s senior lender (“Construction Lender”) of all of their respective right, title and interest in, to and under the Agreement (the “Collateral”) as collateral security for the Partnership’s obligations to Construction Lender under, and in connection with Construction Lender’s loan to the Partnership. In the event Construction Lender forecloses upon the Collateral, Agency hereby agrees that Construction Lender shall have all of Developer’s rights and interests under the Agreement. Construction Lender is hereby made an express third party beneficiary of this Section 13, and the parties hereto shall not amend, modify or terminate the Agreement without Construction Lender’s express written consent. Item 6 Packet Page 99 7 15. Miscellaneous. (a) Nothing in this Agreement shall be construed to limit any claim or right which any party may otherwise have at any time against an Indemnitor or any other person arising from any source other than this Agreement, including any claim for fraud, misrepresentation, waste, or breach of contract other than this Agreement, and any rights of contribution or indemnity under any federal or state environmental law or any other applicable law, regulation, or ordinance. (b) If any party delays in exercising or fails to exercise any right or remedy against a Party, that alone shall not be construed as a waiver of such right or remedy. All remedies of any Party against the other Party are cumulative. (c) This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective representatives, heirs, executor, administrators, successors, and assigns. This Agreement may not be amended except by a written instrument executed by the parties hereto. (d) This Agreement shall be deemed to have been delivered and accepted in the State of California and governed exclusively by the internal substantive laws of the State of California as the same may exist at the date hereof. The parties hereto hereby agree that any action hereon between the parties hereto and their successors in interest may be maintained in a court of competent jurisdiction located in the State of California, and consent to the jurisdiction of any such California court for the purposes connected herewith. (e) Each party hereto intends that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person other than the parties hereto. (f) This Agreement may be executed in multiple counterpart copies, any one of which when duly executed, with all formalities hereof, shall be fully binding and effective as the original of this Agreement. (g) This Agreement shall be effective as of the date first written above, provided however that in the event that the parties do not receive an award of the AHSC Financing, this Agreement shall automatically terminate and be of no further force or effect. [Signatures on following page] Item 6 Packet Page 100 8 Each of the undersigned hereby executes this Agreement in the spaces provided below to evidence their respective agreement to the terms of this Agreement. Agency: By: ________________________________ Name: ________________________________ Its: ________________________________ Developer: Peoples’ Self-Help Housing Corporation, a California nonprofit public benefit corporation By: ________________________________ Name: ________________________________ Its: ________________________________ Item 6 Packet Page 101 Page intentionally left blank. Item 6 Packet Page 102 Department Name: Community Development Cost Center: 4003 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Kyle Bell, Associate Planner SUBJECT: REQUEST TO MODIFY CONDITIONS OF A PREVIOUSLY APPROVED PROJECT AT 774 CAUDILL STREET, TO REFLECT APPROVED CHANGES IN THE PROJECT DESIGN THAT REDUCES THE REQUESTED DENSITY BONUS FROM 48 PERCENT TO 47.5 PERCENT, RESULTING IN A REDUCTION OF THE NUMBER OF AFFORDABLE UNITS REQUIRED FOR THE PROJECT. THE PROJECT IS CATEGORICALLY EXEMPT FROM ENVIRONMENTAL REVIEW (CITY FILE NO. MOD-0775-2019). RECOMMENDATION Adopt a Resolution (Attachment A) modifying the previously approved Council Resolution No. 10734 (2016 Series) (Attachment B) to reflect approved changes, by the Architecture Review Commission, in the project design that result in a reduction of units from 36 to 33, including a reduction of affordable housing units from four to three. DISCUSSION This application is intended to address modifications to the Council Resolution No. 10734 (2016 Series) that approved and conditioned the affordable housing alternative incentives, in order to reflect changes in the project as approved by the ARC (Attachment C). On July 16, 2018, the Architectural Review Commission (ARC) approved modifications to the project which resulted in a reduction of the number of units provided within the project from 36 to 33 units, including a reduction in the number of affordable housing units from four to three. The original project was approved for a 48 percent density bonus and conditioned to provide four (4) dwelling units to very-low income households. Montage Development (applicant) has applied for a modification to this condition to reflect the revised project. The applicant is requesting to revise Condition No 2 of Council Resolution 10734 (2016 Series) to reflect changes to the project scope as a result of the ARC’s approval of the modified design. Revisions to Condition No. 2 are proposed as follows: Prior to the issuance of construction permits, the City and the project owners shall enter into an Affordable Housing Agreement, to be recorded in the office of the San Luis Obispo County Recorder. The agreement shall specify mechanisms and/or procedures to ensure the continued affordability and availability of a minimum of three dwelling units to very-low income households, to the satisfaction of the Community Development Director. The Agreement shall Item 7 Packet Page 103 also set forth those items required by Municipal Code Section 17.140.030.B or any alternative incentives granted pursuant to Section 17.140.040. The Agreement shall “run with the land” and shall be binding upon all heirs, successors, or assigns of the property owner, and shall ensure affordability of three dwelling units for a period of not less than forty-five years, or as otherwise required by state law. The approved 48 percent density bonus increased the total number of density units to 27.28 (where 18.5 density units would otherwise be allowed and considered as the base units). To receive a 48 percent density bonus, the applicant was required to provide 17 percent of base units restricted to very-low income households, as outlined in Zoning Regulation Chapter 17.140.040.E, which equaled four (4) very-low income units (rounded up from 3.145 units, pursuant to 17.140.040.B). The approved modifications to the project design have resulted in a reduction of the overall number of residential units from 36 to 33, making the 48 percent bonus no longer necessary for the project. The applicant is proposing to reduce the density bonus to 47.5 percent, which would require 16 percent of the base units restricted to very-low income households, resulting in three (3) very-low income units (rounded up from 2.96 units). The applicant has requested that the very-low income units be dedicated as one (1) studio, and two (2) one-bedroom units. The modification to the number of dedicated affordable units is consistent with the State allowances and the City’s Housing Element programs and policies to calculate affordable housing requirements associated with density bonuses for very-low income households. BACKGROUND Previous Council or Advisory Body Action On June 20, 2016, the ARC held a hearing to review the design of the proposed project which evaluated the mass and scale of the proposed building as it relates to the neighborhood and the South Broad Street Area Plan (ARCH-2628-2016). The ARC voted (6-0-1) to approve the project based on the finding and subject to conditions (Attachment D). On July 12, 2016, the City Council held a hearing to review the affordable housing alternative incentives that included a density bonus of 48 percent and a reduction in the site development standards for the maximum building height to extend 47.5 feet where 40 feet is normally allowed (AFFH-3142-2016). The City Council voted (5-0) to approve the project (Attachment E). On April 16, 2018, the ARC held a hearing to review modifications to the project design (MOD - 1394-2018). The ARC voted (6-1-0) to continue the project to a date uncertain with thirteen directional items for the applicant to address (Attachment F). On July 16, 2018, the ARC held a hearing to review the applicant’s responses to the thirteen directional items addressing the modifications to the project design. The ARC voted (5-0-2) to approve the project (Attachment G). Item 7 Packet Page 104 Policy Context The City’s Housing and Land Use Elements encourage mixed-use projects where they can be found to be compatible with existing and potential future development. The Land Use Element (LUE) encourages compatible mixed uses in commercial districts1 and specifically discusses residential and commercial mixed use2. One of the City’s Major City Goals is to facilitate the production of housing, including an emphasis on affordable housing. The Housing Element provides policies and programs that address supporting affordable housing projects and increasing density bonuses above State allowances where appropriate (Goals 2, 4, & 6). The Housing Accountability Act (HAA), codified in Government Code § 65589.5, applies to any “housing development project”, and was amended to include “mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.” Government Code § 65589.5(h)(2)(B). It should be noted that the protections in the HAA and the density bonus provisions in the Density Bonus Law (DBL), work in concert with one another. Specifically, the legislature has determined that the benefits afforded by the DBL do not render the protections in the HAA inapplicable. The DBL, codified in Government Code § 65915, mandates that public agencies provide a density bonus and relax development standards through incentives, concessions or waivers if a proposed project includes a prescribed percentage of affordable housing. The level of the density bonus and the number of incentives or concessions is dependent on the amount of affordable housing provided and the level of affordability. A city cannot require a developer to provide a greater percentage of units or deeper level of affordability than prescribed by the statute in order to qualify for the density bonus. 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. Newspaper legal advertisements were posted in the New Times ten days prior to each advisory body meeting (ARC, and City Council). Additionally, postcards were sent to both tenants and owners of properties located within 300 feet of the project site 10 days before each advisory body hearing. Public comment was provided to the advisory bodies through written correspondence and through public testimony at each of the hearings. 1 LUE Policy 3.8.5. Mixed Uses. The City encourages compatible mixed uses in commercial districts. 2 LUE Policy 2.3.6. The City shall encourage mixed use projects, where appropriate and compatible with existing and planned development on the site and with adjacent and nearby properties. The City shall support the location of mixed use projects and community and neighborhood commercial centers near major activity nodes and transportation corridors / transit opportunities where appropriate. Item 7 Packet Page 105 CONCURRENCE The proposed modification to the approved Council Resolution No. 10734 (2016 Series) to reduce the density bonus from 48 percent to 47.5 percent, has been reviewed by various City departments and division including: Planning, Housing, and the City’s Attorney’s Office. Staff has not identified any unusual site conditions or circumstances that would require any other special conditions. Other comments have been incorporated into the draft resolutions as conditions of approval. The approved modifications to the building design have been reviewed by the City Engineering Division, Transportation Division, Building Division, Fire Department, and Utilities Department, and conditions were applied as appropriate to the approved Resolution No. ARC-1014-2018. ENVIRONMENTAL REVIEW The project is categorically exempt under Class 32, In -Fill Development Projects; Section 15332 of the CEQA Guidelines, because the project is consistent with General Plan policies for the land use designation and is consistent with the applicable zoning designation and regulations. The project site occurs on a property of no more than five acres substantially surrounded by urban uses that has no value as habitat for endangered, rare or threatened species and is served by required utilities and public services. FISCAL IMPACT Budgeted: N/A Budget Year: N/A 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 When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which found that overall the General Plan was fiscally balanced. Since the proposed project is consistent with the General Plan, it has a neutral fiscal impact. There is no fiscal impact associated with the approval of this project. Item 7 Packet Page 106 ALTERNATIVES 1. Deny the request for a reduction in density bonus from 48 percent to 47.5 percent, based on findings that the request is inconsistent with alternative or additional incentive regulations within the municipal code. 2. Continue the project and provide direction to the applicant and staff on pertinent issues. Attachments: a - Draft Resolution b - Council Resolution No. 10734 (2016 Series) c - COUNCIL READING FILE - Project Plans d - COUNCIL READING FILE - ARC Report & Resolution 6.20.16 e - COUNCIL READING FILE - Council Report & Meeting Minutes 7.12.16 f - COUNCIL READING FILE - ARC Report & Meeting Minutes 4.16.18 g - COUNCIL READING FILE - ARC Report, Resolution, & Minutes 7.12.18 Item 7 Packet Page 107 RESOLUTION NO. _______ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE MODIFICATIONS TO COUNCIL RESOLUTION NO. 10734 (2016 SERIES) OF A PREVIOUSLY APPROVED PROJECT AT 774 CAUDILL STREET, TO REFLECT CHANGES IN THE PROJECT DESIGN THAT REDUCES THE REQUESTED DENSITY BONUS FROM 48 PERCENT TO 47.5 PERCENT, RESULTING IN A REDUCTION OF THE NUMBER OF AFFORDABLE UNITS REQUIRED FOR THE PROJECT. THE PROJECT IS CATEGORICALLY EXEMPT FROM ENVIRONMENTAL REVIEW (CLASS 32, INFILL DEVELOPMENT). REVIEW AS REPRESENTED IN THE CITY COUNCIL AGENDA REPORT AND ATTACHMENTS DATED JANUARY 21, 2020 (774 CAUDILL, AFFH- 3142-2016/MOD-0775-2019) WHEREAS, on May 2, 2016, the applicant, Caudill Street Partners, submitted an application to request alternative incentives for affordable housing that include a 48 percent density bonus and a reduction in site development standards for the maximum building height to extend to 47.5 feet where 40 feet is normally allowed, for a project located at 774 Caudill Street ; and WHEREAS, on June 20, 2016, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, with a 6-0-1 vote to approve the mixed-use project subject to the findings and conditions of Resolution No. ARC-1011-16, pursuant to a proceeding instituted under ARCH-2628-2016, Caudill Street Partners, applicant; and WHEREAS, on July 12, 2016, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, with a 5-0 vote to approve the affordable housing alternative incentives that included a density bonus of 48 percent and a reduction in the site development standards for the maximum building height to extend 47.5 feet where 40 feet is normally allowed subject to the findings and conditions of Council Resolution No. 10734 (2016 Series), pursuant to a proceeding instituted under AFFH-3142-2016, Caudill Street Partners, applicant; and WHEREAS, on April 16, 2018, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, with a 6-1-0 vote to continue a request, by a new applicant who acquired the property, for a design modification to the previously approved project design with direction to the applicant and staff on pertinent issues, pursuant to a proceeding instituted under MOD-1394-2018, Montage Development, applicant; and Item 7 Packet Page 108 Resolution No. ______ (2020 Series) Page 2 R ______ WHEREAS, on July 16, 2018, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, with a 5-0-2 vote to approve the project design modifications subject to the findings and conditions of Resolution No. ARC-1014-18, pursuant to a proceeding instituted under MOD-1394-2018, Montage Development, applicant; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on January 21, 2020, pursuant to a proceeding instituted under MOD-0775-2019, Montage Development, applicant; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing, and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. Findings. Based upon all the evidence, the City Council makes the following findings to approve the modification (MOD-0775-2019) of the previously approved project (AFFH-3142-2016), hereby granting final approval to reduce the density bonus from 48 percent to 47.5 percent: 1. The project will not be detrimental to the health, safety, or welfare of those working or residing in the vicinity since the proposed project is consistent with the site’s zoning designation, and will be subject to conformance with all applicable building, fire, and safety codes. 2. The proposed project will provide quality affordable housing consistent with the intent of Chapter 17.140 of the Municipal Code to facilitate the production of affordable housing units. 3. The request for a density bonus is consistent with the intent of Housing Element programs 2.17, 6.10, and 6.19, and the alternative affordable housing incentives outlined in Section 17.140.070 of the City’s Zoning Regulations. Section 2. Environmental Review. The project is categorically exempt under Class 32, In-Fill Development Projects; Section 15332 of the CEQA Guidelines, because the project is consistent with General Plan policies for the land use designation and is consistent with the applicable zoning designation and regulations. The project site occurs on a property of no more than five acres substantially surrounded by urban uses that has no value as habitat for endangered, rare or threatened species and is served by required utilities and public services. Item 7 Packet Page 109 Resolution No. ______ (2020 Series) Page 3 R ______ Section 3. Action. The City Council does hereby grant final approval of the modification to Council Resolution No. 10734 (2016 Series) to reduce the previously approved density bonus from 48 percent to 47.5 percent (MOD-0775-2019/AFFH-3142- 2016), subject to the following conditions: Planning Department 1. Final project design and construction drawings shall be in substantial compliance with the project plans approved by the Architectural Review Commission and the City Council. A separate full-size sheet shall be included in working drawings submitted for a building permit that list all conditions, and code requirements of project approval as Sheet No. 2 (ARCH-2628-2016 / MOD-1394-2018, and AFFH-3142-2016 / MOD-0775-2019). Reference should be made in the margin of listed items as to where in plans requirements are addressed, as applicable. Any change to approved design, colors, materials, landscaping or other conditions of approval must be approved by the Community Development Director or Architectural Review Commission, as deemed appropriate. 2. Prior to the issuance of construction permits, the City and the project owners shall enter into an Affordable Housing Agreement, to be recorded in the office of the San Luis Obispo County Recorder. The agreement shall specify mechanisms and/or procedures to ensure the continued affordability and availability of a minimum of three dwelling units to very-low income households, to the satisfaction of the Community Development Director. The Agreement shall also set forth those items required by Municipal Code Section 17.140.030.B or any alternative incentives granted pursuant to Section 17.140.040. The Agreement shall “run with the land” and shall be binding upon all heirs, successors, or assigns of the property owner, and shall ensure affordability of three dwelling units for a period of not less than forty-five years, or as otherwise required by state law. Item 7 Packet Page 110 Resolution No. ______ (2020 Series) Page 4 R ______ Indemnification 3. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents or officers and employees from any claim, action or proceeding against the City or its agents, officers or employees, to attack, set aside, void, or annul, in whole or in part, the City's approval of this project. In the event that the City fails to promptly notify the Owner/ Applicant of any such claim, action or proceeding, or that the City fails to cooperate fully in the defense of said claim, this condition shall thereafter be of no further force or effect. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _______ day of ____________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: _____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______________ day of _______________________, 2020. ____________________________________ Teresa Purrington, City Clerk Item 7 Packet Page 111 RESOLUTION NO. 10734 (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE ALTERNATIVE INCENTIVES TO PROVIDE FOR AFFORDABLE HOUSING THAT INCLUDE A DENSITY BONUS OF 48 PERCENT AND A REDUCTION IN SITE DEVELOPMENT STANDARDS FOR THE MAXIMUM BUILDING HEIGHT TO EXTEND TO 47.5 FEET WHERE 40 FEET IS NORMALLY PERMITTED, WITH A CATEGORICAL EXEMPTION FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES AS REPRESENTED IN THE CITY COUNCIL AGENDA REPORT AND ATTACHMENTS DATED JULY 12, 2016 (774 CAUDILL AFFH-3142-2016) WHEREAS, the applicant, on May 2, 2016, submitted an application to request alternative incentives for affordable housing that include a forty-eight (48) percent density bonus and a reduction in site development standards for the maximum building height to extend to 47.5 feet where 40 feet are normally permitted, for a project located at 774 Caudill Street; and WHEREAS, on June 12, 2016, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of reviewing the design of a new four story mixed-use project (ARCH -2628-2016), Caudill Street Partners, applicant; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on July 12, 2016, pursuant to a proceeding instituted under AFFH-3142-2016, Caudill Street Partners, applicant; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing, and WHEREAS, notices of said public hearings were made at the time and in the manner required by law. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: R 10734 Item 7 Packet Page 112 Resolution No. 10734 (2016 Series) Page 2 SECTION 1. Firadiiigs. Based upon all the evidence, the City Council makes the following findings: 1. The project will not be detrimental to the health, safety, or welfare of those working or residing in the vicinity since the proposed project is consistent with the site's zoning designation, and will be subject to conformance with all applicable building, fire, and safety codes. 2. The proposed project will provide quality affordable housing consistent with the intent of Chapter 17.90 of the Municipal Code, and the requested density bonus and reduction to site development standards is necessary to facilitate the production of affordable housing units. 3. The requests for a density bonus and reduction to site development standards for maximum building height are consistent with the intent of Housing Element programs 2. 17, 6.10, and 6. 19, and the alternative affordable housing incentives outlined in Section 17.90.060 of the City's Zoning Regulations. 4. The proposed height, mass and scale of the project will not negatively alter the overall character of the neighborhood or the streets appearance because the South Broad Street Area Plan requires that mixed-use buildings provide residential units in the upper levels of a structure with a minimum height allowance of 25 feet and at least 80% of the building fagade to be constructed along the property build -to lines. The project is consistent with the South Broad Street Area Plan and Community Design Guidelines because the development is designed in a manner that does not deprive reasonable solar access to adjacent properties; by positioning the majority of the building mass along the street frontage that incorporates vertical and horizontal wall plan offsets that provide high-quality and aesthetically pleasing architectural design. SECTION 2. Environmental Review. The project is categorically exempt under Class 32, In -Fill Development Projects; Section 15332 of the CEQA Guidelines, because the project is consistent with General Plan policies for the land use designation, is consistent with the applicable zoning designation, is consistent with Government Code section 65915(f)(5) which states that granting a density bonus does not require zoning change or other discretionary approval, would not have a specific adverse impact upon public health and safety or the physical environment because the project is designed in a manner that does not deprive reasonable solar access to adjacent properties and is subject to conformance with all applicable building, fire, and safety codes, and the property is not listed in the California Register of Historic Resources. The project site occurs on a property of no more than five acres substantially surrounded by urban uses that has no value as habitat for endangered, rare or threatened species as the site is located on an existing developed property. R 10734 Item 7 Packet Page 113 Resolution No. 10734 (2016 Series) Page 3 SECTION 3. Action. The City Council does hereby grands final approval of the alternative incentives to provide for affordable housing that include a density bonus of 48 percent and a reduction in the site development standards for the maximum building height to extend 47.5 feet where 40 feet is normally permitted (AFFH-3142-2016), subject to the following conditions: Planning Department 1. Final project design and construction drawings shall be in substantial compliance with the project plans approved by the ARC and the City Council. A separate full-size sheet shall be included in working drawings submitted for a building permit that list all conditions, and code requirements of project approval as Sheet No. 2 (ARCH - 2628 -2016 & AFFH-3142-2016). Reference should be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, landscaping or other conditions of approval must be approved by the Director or Architectural Review Commission, as deemed appropriate. 2. Prior to the issuance of construction permits, the city and the project owners shall enter into an Affordable Housing Agreement, to be recorded in the office of the county recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of a minimum of 4 dwelling units to very -low income households, to the satisfaction of the Community Development Director. The agreement shall also set forth those items required by Section 17.90.030(B) or any alternative incentives granted pursuant to Section 17.90.060. The agreement shall run with the land and shall be binding upon all heirs, successors or assigns of the project or property owner, and shall ensure affordability for a period of not less than forty- five years, or as otherwise required by state law. 3. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents or officers and employees from any claim, action or proceeding against the City or its agents, officers or employees, to attack, set aside, void, or annul, in whole or in part, the City's approval of this project. In the event that the City fails to promptly notify the Owner / Applicant of any such claim, action or proceeding, or that the City fails to cooperate fully in the defense of said claim, this condition shall thereafter be of no further force or effect. R 10734 Item 7 Packet Page 114 Resolution No. 10734 (2016 Series) Page 4 Upon motion of Council Member Christianson, seconded by Council Member Ashbaugh, and on the following roll call vote: AYES: Council Members Ashbaugh, Christianson and Rivoire, Vice Mayor Carpenter and Mayor Marx NOES: None ABSENT: None Mayor Ja. M ATTEST: Lee Price, MMC Interim City Clerk APPROVED AS TO FORM: ty Attorney IN WITNESS WHEREOF, I have he%unto set my hand and affixed the official seal of the City of Sail Luis Obispo, California, this day of -'U I Ll Lee Price, MMC Interim City Clerk R 10734 Item 7 Packet Page 115 Page intentionally left blank. Item 7 Packet Page 116 Department Name: Utilities Cost Center: 6003 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Jennifer Thompson, Utilities Business Manager SUBJECT: PUBLIC DISCLOSURE OF GOOD FAITH ESTIMATES AND PAY OFF OF STATE REVOLVING FUND LOAN AS CONDITIONS OF THE WATER ENERGY EFFICIENCY PROJECT UPGRADE FINANCING RECOMMENDATION 1. Review the California Infrastructure and Economic Development Bank (I Bank) good faith estimate in compliance with Government Code Section 5851.2 disclosure requirements; and 2. Adopt a resolution accepting the good faith estimate (Attachment A). 3. Adopt a resolution authorizing the use of Water Fund Unreserved Working Capital to pay off the State Revolving Fund (SRF) Water Reuse Project loan and authorizing payment of the I Bank loan origination fee (Attachment B). DISCUSSION Background On November 19, 2019, the City Council voted 4-0-1 (Mayor Harmon absent) to enter into an agreement with PG&E for implementation of the Water Energy Efficiency Project. This project will replace critical aging infrastructure with energy saving equipment at the Water Treatment Plant. With this action, Council also approved the debt financing of up to $14,300,000 for the construction of the project. After analyzing two sources of funding, (1) a municipal lease from a commercial bank and; (2) a traditional loan from the Infrastructure Bank, City staff found I Bank to be the preferred option. Staff considered the interest rate, other fees, t erm, and debt covenant requirements in other existing Water Fund debt. I Bank offered the lowest interest rate of 2.5 percent and satisfies the debt covenants in existing Water Fund debt. The commercial bank interest rate was 2.75 percent and a municipal lease type loan would violate existing debt covenants. Good Faith Estimate Pursuant to Government Code Section 5852.1, which became effective January 1, 2018, the following good faith estimates obtained from an underwriter, financial advisor, or private lender, must be disclosed at a public meeting before the governing body of a local government entity for the issuance of debt with a term greater than 13 months: Item 8 Packet Page 117 1. The true interest cost of the loan; 2. Any finance charges; 3. The amount of proceeds received; and 4. The total payment amounts. The City has applied for financing for the Water Energy Efficiency project from I Bank with a term of 20 years. Pursuant to that application, the I Bank underwriter has provided the attached amortization schedule (Attachment C) which serves as a good faith estimate of these items. 1. The true interest cost of the loan is $3,807,745.48; 2. There is a 0.3 percent annual fee totaling $485,529.46 over the term of the loan; 3. The loan proceeds are $14,300,000; and 4. The total debt payment amounts to $18,593,274.94. State Revolving Fund Loan Pay Off As a condition of applying for and entering into the financing agreement, I Bank is requiring the City to pay off an existing loan from the State Revolving Fund (SRF). The SRF loan proceeds were received in 2004 to pay for the Water Reuse Project which generally consisted of constructing water recycling facilities to provide approximately 1,000 acre-feet per year of recycled water for landscape and agricultural irrigation in the southern part of the City. Both I Bank and the SRF have a restrictive parity debt condition which means that each agency requires that their loan be secured first by Water Fund revenues. To resolve this conflict, I Bank is requiring the City to either enter into a formal agreement with the SRF deleting their parity requirement or that the City pay off the SRF loan prior to receiving financing from I Bank. It is unlikely that the SRF will agree to delete its parity requirement. However, since the SRF loan was previously scheduled to be paid off in August 2024 staff recommends paying it off early to avoid the conflict. By paying the loan off early, the City will save approximately $186,000 in interest and service charges. I Bank Loan Origination Fee I Bank charges an origination fee of one percent of the loan amount, or $143,000. The origination fee can either be financed with the loan or paid in advance with cash. The recommendation is to pay the loan origination fee in advance from Water Fund Unreserved Working Capital to avoid paying interest on the $143,000 over the course of the loan. Previous Council Action On May 21, 2019 the City Council adopted “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the submission of the application to the I Bank for financing the Water Energy Efficiency project, authorizing the incurring of an obligation payable to I Bank for the financing of the Water Energy Efficiency project if I Bank approves said application, declaration of official intent to reimburse certain expenditures from proceeds of obligation, and approving certain other matters in connection therewith” (Attachment D). This resolution allowed the City to apply for I Bank financing but did not satisfy the requirements of Government Code Section 5852.1. Item 8 Packet Page 118 On November 19, 2019 the City Council adopted “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of water fund unreserved working capital for the water energy efficiency project” (Attachment E). This resolution authorized the use of unreserved working capital for cash flow purposes but did not go so far as to authorize the use of unreserved working capital to pay off the SRF loan. Policy Context The good faith estimate public disclosure is required by State law: Government Code Section 5852.1. Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. CONCURRENCE The Finance Department concurs with the recommendation. ENVIRONMENTAL REVIEW The City determined the activity funded by the I Bank loan, the Water Energy Efficiency Project, is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15301, Class 1 – Existing Facilities and 15328, Class 28 - Small Hydroelectric Projects at Existing Facilities. The exemption was filed with the State Clearinghouse on January 24, 2019. FISCAL IMPACT Budgeted: No Budget Year: 2019-20 Funding Identified: Yes - Water Fund & Debt Financing Fiscal Analysis: I Bank Amortization Schedule Summary Loan Proceeds $14,300,000 Total Interest $3,807,745.48 Total Annual Fee* $485,529.46 Total Payments $18,593,274.94 *over the term of the loan. Item 8 Packet Page 119 The good faith estimate does not have a fiscal impact but simply serves as public disclosure required to obtain financing for the Water Energy Efficiency Project. Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Other: Water Fund $2,643,000 $(525,456.94) $2,643,000 Other: Sewer Fund By paying the SRF loan off early, the City will save approximately $186,000 in interest and service charges and will not be obligated to pay the $525,456.94 annual payment for the next five years. Unreserved Working Capital Balance After the SRF loan is paid off the Water Fund will still have approximately $14,000,000 in Unreserved Working Capital at the end of fiscal year 2019-20 (unaudited financials). The Water Fund has historically maintained an Unreserved Working Capital balance of between $10 million and $15 million. This is considered the minimum level necessary to adequately provide for economic uncertainties, local disasters, other financial hardships; unseen operating or capital needs; and cash flow requirements. Water Rates The current adopted water rates are sufficient to cover the one-time SRF payment and origination fee and the resulting decrease in Unreserved Working Capital. No increase to rates will be required to pay for this transaction. ALTERNATIVES 1. Do not adopt the good faith estimate resolution. This is not recommended because public disclosure of the good faith estimate is required by California State law. 2. Do not approve the use of Unreserved Working Capital. This is not recommended because I Bank is requiring the City to either enter into a formal agreement with the SRF deleting their parity requirement or that the City pay off the SRF loan prior to receiving financing from I Bank. It is unlikely that the SRF will agree to delete its parity requirement so paying off the SRF loan is the most feasible alternative. It is also preferable to pay the I Bank origination fee from Unreserved Working Capital rather than financing to avoid paying interest on the fee. Item 8 Packet Page 120 Attachments: a - Draft Resolution - Accepting the Good Faith Estimate b - Draft Resolution - Authorizing the Use of Unreserved Working Capital c - I Bank Amortization Schedule d - Resolution No. 11011 (2019 Series) e - Resolution No. 11063 (2019 Series) Item 8 Packet Page 121 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK GOOD FAITH ESTIMATE WHEREAS, on January 1, 2018 Government Code Section 5852.1 became effective; and WHEREAS, Government Code Section 5852.1 requires the following good faith estimates obtained from an underwriter, financial advisor, or private lender, be disclosed at a public meeting before the governing body of a local government entity for the issuance of debt with a term greater than 13 months: (1) the true interest cost of the loan; (2) any finance charges; (3) the amount of proceeds received; and (4) the total payment amount; and WHEREAS, the City has applied for a loan from the California Infrastructure and Economic Development Bank (I Bank) to fund the Water Energy Efficiency Project at the Water Treatment Plant; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows that: Item 8 Packet Page 122 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1. The City Council hereby receives the following good faith estimate, as of December 2019, from I Bank. a) The true interest cost of the loan is $3,807,745.48; b) There is a 0.3 percent annual fee totaling $485,529.46 over the term of the loan; c) The loan proceeds are $14,300,000; and d) The total payment amounts are $18,593,274.94. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, 2020. ____________________________________ Teresa Purrington City Clerk Item 8 Packet Page 123 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE USE OF WATER FUND UNRESERVED WORKING CAPITAL TO PAY OFF THE STATE REVOLVING FUND WATER REUSE PROJECT LOAN WHEREAS, on April 4, 2018, the City Council adopted Resolution 10878 and voted to proceed with the Water Energy Efficiency Project (Project); and WHEREAS, on May 21, 2019, the City Council approved Resolution 11011 (2019 Series) authorizing the Utilities Director to enter into a financing agreement with the California Infrastructure and Economic Development Bank (I Bank) to debt finance the project; and WHEREAS, I Bank is requiring the City, as a condition of applying for and entering into a financing agreement, to pay off an existing loan for the Water Reuse Project from the State Revolving Fund (SRF) which has an estimated balance of $2,465,255.60; and WHEREAS, I Bank charges a one percent loan origination fee ($143,000); and WHEREAS, a balance prior to the SRF loan payoff of approximately $16.7 million (unaudited financials) is available from the Water Fund, Unreserved Working Capital. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Water Fund is authorized to use up to $2,643,000 Water Fund Unreserved Working Capital to pay off the Water Reuse Project SRF loan and to pay the I Bank loan origination fee. Item 8 Packet Page 124 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2. Environmental Determination. In compliance with the California Environmental Quality Act (CEQA), the City Council of the City of San Luis Obispo finds that the activity funded by the I Bank loan is a project that is exempt under Class 1 (CEQA Guidelines, §15301), Existing Facilities. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this _________ day of _____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 8 Packet Page 125 $14,300,000 2.50%Loan or Lease Loan 0.30% 4/1/2020 Fiscal Year Ends June 30 First Interest Only Pmt Date First Principal Pmt Date 8/1/2020 20 Amortization Period 20 - - Payment Date Ending Principal Balance Principal Payment Interest Payment Total Principal & Interest Annual Fee Total Payment Total Payment Fiscal Year Ending June 30 1-Apr-2020 $14,300,000.00 1-Aug-2020 $13,740,196.06 $559,803.94 $119,166.67 $678,970.61 $42,900.00 $721,870.61 1-Feb-2021 $171,752.45 $171,752.45 $171,752.45 $893,623.06 1-Aug-2021 $13,166,397.02 $573,799.04 $171,752.45 $745,551.49 $41,220.59 $786,772.08 1-Feb-2022 $164,579.96 $164,579.96 $164,579.96 $951,352.04 1-Aug-2022 $12,578,253.00 $588,144.02 $164,579.96 $752,723.98 $39,499.19 $792,223.17 1-Feb-2023 $157,228.16 $157,228.16 $157,228.16 $949,451.33 1-Aug-2023 $11,975,405.39 $602,847.62 $157,228.16 $760,075.78 $37,734.76 $797,810.54 1-Feb-2024 $149,692.57 $149,692.57 $149,692.57 $947,503.10 1-Aug-2024 $11,357,486.58 $617,918.81 $149,692.57 $767,611.37 $35,926.22 $803,537.59 1-Feb-2025 $141,968.58 $141,968.58 $141,968.58 $945,506.17 1-Aug-2025 $10,724,119.81 $633,366.78 $141,968.58 $775,335.36 $34,072.46 $809,407.82 1-Feb-2026 $134,051.50 $134,051.50 $134,051.50 $943,459.32 1-Aug-2026 $10,074,918.86 $649,200.95 $134,051.50 $783,252.44 $32,172.36 $815,424.80 1-Feb-2027 $125,936.49 $125,936.49 $125,936.49 $941,361.29 1-Aug-2027 $9,409,487.89 $665,430.97 $125,936.49 $791,367.46 $30,224.76 $821,592.21 1-Feb-2028 $117,618.60 $117,618.60 $117,618.60 $939,210.81 1-Aug-2028 $8,727,421.15 $682,066.74 $117,618.60 $799,685.34 $28,228.46 $827,913.81 1-Feb-2029 $109,092.76 $109,092.76 $109,092.76 $937,006.57 1-Aug-2029 $8,028,302.73 $699,118.41 $109,092.76 $808,211.18 $26,182.26 $834,393.44 1-Feb-2030 $100,353.78 $100,353.78 $100,353.78 $934,747.22 1-Aug-2030 $7,311,706.36 $716,596.37 $100,353.78 $816,950.16 $24,084.91 $841,035.06 1-Feb-2031 $91,396.33 $91,396.33 $91,396.33 $932,431.39 1-Aug-2031 $6,577,195.08 $734,511.28 $91,396.33 $825,907.61 $21,935.12 $847,842.73 1-Feb-2032 $82,214.94 $82,214.94 $82,214.94 $930,057.67 1-Aug-2032 $5,824,321.02 $752,874.06 $82,214.94 $835,089.00 $19,731.59 $854,820.59 1-Feb-2033 $72,804.01 $72,804.01 $72,804.01 $927,624.60 1-Aug-2033 $5,052,625.10 $771,695.92 $72,804.01 $844,499.93 $17,472.96 $861,972.89 1-Feb-2034 $63,157.81 $63,157.81 $63,157.81 $925,130.71 1-Aug-2034 $4,261,636.79 $790,988.31 $63,157.81 $854,146.13 $15,157.88 $869,304.00 1-Feb-2035 $53,270.46 $53,270.46 $53,270.46 $922,574.46 1-Aug-2035 $3,450,873.77 $810,763.02 $53,270.46 $864,033.48 $12,784.91 $876,818.39 1-Feb-2036 $43,135.92 $43,135.92 $43,135.92 $919,954.31 1-Aug-2036 $2,619,841.67 $831,032.10 $43,135.92 $874,168.02 $10,352.62 $884,520.64 1-Feb-2037 $32,748.02 $32,748.02 $32,748.02 $917,268.66 1-Aug-2037 $1,768,033.77 $851,807.90 $32,748.02 $884,555.92 $7,859.53 $892,415.45 1-Feb-2038 $22,100.42 $22,100.42 $22,100.42 $914,515.87 1-Aug-2038 $894,930.67 $873,103.10 $22,100.42 $895,203.52 $5,304.10 $900,507.62 1-Feb-2039 $11,186.63 $11,186.63 $11,186.63 $911,694.25 1-Aug-2039 $894,930.67 $11,186.63 $906,117.31 $2,684.79 $908,802.10 $908,802.10 $14,300,000.00 $3,807,745.48 $18,107,745.48 $485,529.46 $18,593,274.94 $18,593,274.94 City of San Luis Obispo Total Payments: Applicant/Project Name Loan Amount Interest Rate Annual Fee Funding Date Loan Years Item 8 Packet Page 126 RESOLUTION NO. 11011 (2019 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SUBMISSION OF THE APPLICATION TO THE CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK (IBANK) FOR FINANCING THE WATER ENERGY EFFICIENCY PROJECT, AUTHORIZING THE INCURRING OF AN OBLIGATION PAYABLE TO TRANK FOR THE FINANCING OF THE WATER ENERGY EFFICIENCY PROJECT IF IBANK APPROVES SAID APPLICATION, DECLARATION OF OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF OBLIGATION, AND APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the California Infrastructure and Economic Development Bank ("IBank") administers a financing program to assist local governments with the financing of Public Development Facilities as described in Section 63000 et seq. of the California Government Code (the "Act"); and WHEREAS, IBank created the Infrastructure State Revolving Fund Program ("ISRF Program") pursuant to the provision of the Act; and WHEREAS, IBank has instituted an application process for financing under its ISRF Program; and WHEREAS, !Bank's Criteria, Priorities and Guidelines for the Selection of Projects for Financing under the ISRF Program, dated February 23, 2016, and as may thereafter be amended from time to time (the "Criteria"), establishes requirements for the financing of projects under the ISRF Program; and WHEREAS, the City of San Luis Obispo ("Applicant") desires to submit an application ("Financing Application") to the IBank from the ISRF Program for the financing of the Water Energy Efficiency Project ("Project") in an amount not to exceed $14,300,000; and WHEREAS, the Act and the Criteria require the Applicant to make, by resolution of its governing body, certain findings prior to a project being selected for financing by IBank; and WHEREAS, the Applicant expects to incur or pay certain expenditures in connection with the Project from its Water Fund that are reimbursable with the proceeds of tax exempt bonds or other tax exempt securities under Federal Tax Law ( defined below) prior to incurring indebtedness for the purpose of financing costs associated with the Project on a long-term basis (the "Reimbursement Expenditures"); and R 11011 Item 8 Packet Page 127 Resolution No. 110011 (2019 Series) Page 2 WHEREAS, the Applicant reasonably expects that a financing arrangement ("Obligation") in an amount not expected to exceed $14,300,000 will be entered into under and memorialized by one or more financing agreements and related documents ( collectively, the "Financing Agreement") and that certain proceeds of such Obligation will be used to reimburse the Applicant for Reimbursement Expenditures incurred or paid prior to incurring the Obligation; and WHEREAS, the Applicant acknowledges that IBank funds the ISRF Program, in part, with the proceeds of tax exempt bonds and, as such, has certain compliance obligations that may require it to have the Applicant enter into one or more new financing agreements to replace the Financing Agreement ( collectively, the "Replacement Agreement") on terms and conditions substantially identical to the original Financing Agreement. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Council hereby approves confirms, ratifies, and affirms all actions of the Applicant's representatives, employees and officers heretofore taken in connection with, or with respect to, submitting the Financing Application, and the consideration and approval of the Obligation and the Financing Agreement, if IBank approves the Financing Application and the Obligation, and in connection therewith the Council finds and certifies: a. The Project facilitates the effective and efficient use of existing and future public resources so as to promote both economic development and conservation of natural resources; b. The Project develops and enhances public infrastructure in a manner that will attract, create, and sustain long-term employment opportunities; c. That the Project is consislent with the General Plan of the City of San Luis Obispo, and the General Plan of the County of San Luis Obispo; d. The proposed financing is appropriate for the Project; e. The Project is consistent with the Criteria; and f It has considered (i) the impact of the Project on California's land resources and the need to preserve such resources; (ii) whether the Project is economically or socially desirable; and (iii) whether the project is consistent with, and in furtherance of the State Environmental Goals and Policy Report (as defined in the Criteria). SECTION 2. Environmental Determination. In compliance with the California Environmental Quality Act (CEQA), the City Council of the City of San Luis Obispo finds that the activity funded by the loan is a project that is exempt under Class l (CEQA Guidelines, § 15301 ), Existing Facilities and Class 28 (CEQA Guidelines, § 15328), Small Hydroelectric Projects at Existing Facilities. R 11011 Item 8 Packet Page 128 Resolution No. 110011 (2019 Series) Page 3 SECTION 3. The Applicant hereby declares its official intent to use proceeds of the Obligation to reimburse itself for the Reimbursement Expenditures with the proceeds of tax exempt bonds or other tax exempt securities issued under the provisions of the Internal Revenue Code of 1986, as amended, and those Treasury Regulations implementing such provisions ( collectively, "Federal Tax Law''). This declaration is made solely for purposes of establishing compliance with applicable requirements of Federal Tax Law and its date is controlling for purposes of reimbursement under Federal Tax Law. This declaration does not bind the Applicant to make any expenditure, incur any indebtedness, or proceed with the Project. SECTION 4. All of the Reimbursement Expenditures were made no earlier than 60 days prior to the date of this Resolution. The Applicant will allocate proceeds of the Obligation to pay Reimbursement Expenditures within eighteen ( 18) months of the later of the date the original expenditure was paid or the date the Project was placed in service or abandoned, but in no event more than three (3) years after the original expenditure was paid. SECTION 5. The Director of Utilities, or Deputy Director Utilities -Water, is hereby authorized and directed to act on behalf of the Applicant in all matters pertaining to the Financing Application, and if IBank approves the Financing Application and the Obligation, the execution of related financial documents, including but not limited to, the authority to : (i) pledge the revenues of the Water Fund and all legally available amounts in the Water Fund, on a parity basis with the Applicant's obligations in connection with the existing debt, to the repayment of the Obligation, (ii) provide covenants relating to, among other things, maintaining the debt service coverage ratio required by !Bank, rates and charges to be pledged, and as to any other security or collateral securing the Obligation, and (iii) take any other action necessary or desirable to enable the Applicant to enter into the Financing Agreement and incur the Obligation. SECTION 6. If the Financing Application and the Obligation is approved by !Bank, the Director of Utilities, or Deputy Director Utilities -Water is authorized to negotiate, enter into and sign financing documents and any amendments thereto, including, but not limited to the Financing Agreement and the Replacement Agreement, with IBank for the purposes of financing the ObHg~tion. R ll011 Item 8 Packet Page 129 Resolution No. 110011 (2019 Series) Page4 SECTION 6. This resolution shall become effective immediately upon adoption. Upon motion of Council Member Christianson, seconded by Council Member Gomez, and on the following roll call vote: AYES : NOES: ABSEN T: Council Members Chris tianson, Gomez, and Stewart, Vice Mayor Pease, and Mayor Harmon. None None The foregoing resolution was adopted this 21 st day of May 2019. ATTEST: (_~'\J~. Teresa Purrington City Clerk APPROVED AS TO FORM: IN WITNESS WHEREOF, I have heretmto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 6 day of 3u.b:e , 2C) ,q Q\WA~?~~ eresa Purrington City C lerk R 11011 Item 8 Packet Page 130 RESOLUTION NO. 11063 (2019 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER FUND UNRESERVED WORKING CAPITAL FOR THE WATER ENERGY EFFICIENCY PROJECT WHEREAS, on April 4, 2018, the City Council adopted Resolution 108 78, reviewed the Preliminary Energy Assessment for the Water Energy Efficiency Project (Project) and voted in favor of proceeding to the Project's Investment Grade Audit; and WHEREAS, on May 21, 2019, the City Council approved Resolution 11011 authorizing the Utilities Director to enter into a financing agreement with the Infrastructure Bank (!Bank) to debt finance the Project; and WHEREAS, in June 2019, the City Council approved 2019-21 Financial Plan, Capital Improvement Program, identified a Project budget of $14,300,000; and WHEREAS, On August 20, 2019, the City Council authorized the use ofup to $2 million including design, equipment acquisition, construction costs and contingencies from Water Fund, Unreserved Working Capital to fund Emergency Power Supply needs and $1,700,000 is available to contribute for funding the Project; and WHEREAS, on November 1, 2019, the City Manager approved an extension and an amendment to the Work Order to include design for a permanent Water Treatment Plant generator in response to potential Public Safety Power Shutoff events; and WHEREAS, the total available budget for the Efficiency Phase of the Project is $16,000,000; and WHEREAS, private financing (US Bancorp , and others) is al so being considered for the Project as it may offer the City more favorable financing terms; and WHEREAS, a balance of approximately $18 million (unaudited financials) is available from Water Fund, Unreserved Working Capital to fund the Efficiency Phase of the Project and manage cashflow. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obi spo as follows: SECTION 1. The Director of Finance and/or the Utilities Director is authorized to execute and deliver any and all certificates, contracts an d other documents necessary or appropriate to finance the Project. R 11063 Item 8 Packet Page 131 Resolution No. 11063 (2019 Series) Page 2 SECTION 2. Environmental Review. Construction of this project is exempt from the California Environmental Quality Act (CEQA) 1530 I , Class 1 -Existing Facilities and 15328, Class 28 -Small Hydroelectric Projects at Existing Faci lities. The Community Development Department issued a Notice of Exemption on January 24, 2019. Upon motion of Council Member Christianson, seconded by Council Memb er Stewart, and on the following roll call vote: AYES: NOES: ABSENT : Council Member Christianson, Gomez, Stewart and Vice Mayor Pease None Mayor Harmon The fo regoing resolution was adopted this 191h day ofNovember 2019. ATTEST: eresa Purrington City C lerk ).·Christi ne Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto s e t my hand and affixed the offic ial seal of the Ci ty of San Luis Obispo , California, this 3 ~ day ofVce;elb<l h '}V:: , ZO \ 9 . Teresa Purrington City Clerk - R 11063 Item 8 Packet Page 132 Department Name: Community Development Cost Center: 4001 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Teresa McClish, Special Projects Manager SUBJECT: AGREEMENT WITH THE LOCAL GOVERNMENT COMMISSION TO SUPPORT THE CALTRANS CLIMATE CHANGE ADAPTATION GRANT (RESILIENT SAN LUIS OBISPO) RECOMMENDATION Authorize the Community Development Director to enter into an agreement (Attachment A) with the Local Government Commission (LGC) in the amount of $147,750 to support a comprehensive vulnerability assessment and update to the Safety Element of the General Plan funded through the Caltrans Climate Change Adaptation Grant, “Resilient SLO.” DISCUSSION Background In May 2019, the City was awarded a climate change adaptation grant from Caltrans titled, “Resilient San Luis Obispo” for the amount of $435,250, with a local in-kind staff time match valued at approximately $56,400 over a three-year period (Attachment B). The staff time match has been allocated to implement objectives in the 2019- 21 Financial Plan including an update to the Safety Element of the General Plan and the Climate Action Plan (CAP). The grant will fund consultant assistance to conduct a comprehensive assessment of the community’s vulnerability to the impacts of climate change and to update the Safety Element of the General Plan to include a strong adaptation and resilience focus. LGC was a co-applicant on the grant and a contract with LGC is required to formalize the roles and responsibilities associated with work under the grant.The agreement includes support for project management, overall coordination, an audit of current City adaptation policies, a capacity and coordination assessment, and the placement of an additional CivicSpark Fellow with the sole focus of completing the grant work. In addition, LGC would provide community outreach and education along with subject-matter expertise throughout the duration of the project. LGC staff has extensive experience in public engagement in climate change adaptation and in facilitating projects. Separately, the City is currently participating with CivicSpark, a statewide program through the LGC, with two Fellows working on the CAP and Resilient SLO. Item 9 Packet Page 133 City staff conducted the kick-off meeting with Caltrans and are coordinating with LGC on the Request for Proposals (RFP) required to secure technical consultants to prepare the comprehensive hazard and vulnerability assessments and adaptation strategies for the General Plan Safety Element update. As currently proposed, the LGC will provide day to day oversight of the Safety Element consultant and review of work product in coordination with City staff. Previous Council or Advisory Body Action On October 15, 2018, Council authorized staff to submit a grant application for this program and further affirmed a commitment to updating the Safety Element of the General Plan as part of the 2019-21 budget, as approved on June 3, 2019. On August 20, 2019, Council approved a resolution accepting the Caltrans Climate Change Adaptation Planning Grant. Public Engagement The update to the Safety Element of the General Plan is included as a work task in the 2019-21 Climate Action Major City Goal (MCG). The MCGs were developed as part of an extensive and comprehensive public engagement process. CONCURRENCE The Office of Sustainability secured this grant and are working with the Community Development Department on the project and the MCG work task and concurs with this report. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund State $435,250 $147, 750 $287,500 Federal 0 Fees 0 Other: 0 Total $435,250 $147,750 $287,500 Item 9 Packet Page 134 The project is supported by a $435,000 grant from Caltrans. The Agreement for LGC’s services will encumber $147,750 of the grant. The remaining grant funds ($287,000) will be used for the additional consulting services to prepare technical reports and the Safety Element through issuance of an RFP. The $56,000 required grant match from the City is provided through staff time including the project manager in Community Development, support staff form the Office of Sustainability and the Fire Department, and support staff throughout the City over the three year project and is included in the existing City Financial Plan. ALTERNATIVES Council could choose not to provide authorization for the agreement. Staff does not recommend this as this would require significant staff resources to manage the grant and prepare the General Plan Safety Element update, without valuable expertise offered by the LGC. In addition, LGC was a co-applicant on the Cal Trans grant. Attachments: a - Local Government Commission Contract b - Restricted Grant Agreement Item 9 Packet Page 135 Agreement Page 1 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this _____day of ______, 2020 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and the LOCAL GOVERNMENT COMMISSION (LGC) hereinafter referred to as Contractor or Consultant. W I T N E S S E T H: WHEREAS, in May, 2019, the City was awarded a Climate Change Adaptation Grant (Grant) from the California Transportation Commission; and WHEREAS, the City wants to engage the services of the LGC, who is listed as a sub-applicant on the Grant, in support of project management and plan preparation as outlined in the Grant Scope of Work; and WHEREAS, Contractor is qualified to perform this type of service and has submitted a cost proposal to do so which has been accepted by City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenant s hereinafter contained, the parties hereto agree as follows: 1.TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until as first written above, until acceptance or completion of said services. 2.INCORPORATION BY REFERENCE The Contractor’s scope of work incorporated in and made a part of this Agreement attached as Exhibit A. The City’s terms and conditions are hereby incorporated in an made a part of this Agreement as Exhibit B. The City ’s insurance requirements and contractors proof of insurance are hereby incorporated in and made part of this Agreement attached as Exhibit C. To the extent that there are any conflicts between the Contractor’s fees and scope of work and the City’s terms and conditions, the City’s terms and conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3.CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City agrees to cooperate with Consultant in the completion of the work described in the Scope of Work attached hereto and incorporated by reference. City will pay and Consultant shall therefore receive payments in accordance with that scope of work for the total sum of $147, 750. Item 9 Packet Page 136 Agreement Page 2 4.CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed b y City, Consultant agrees with City to provide all specified services as set forth in the Scope of Work attached hereto and incorporated herein by this reference. Consultant may not amend the Scope of Work, either to modify provisions or to add or delete p rovisions, without prior written consent of the City's Project Manager. 5.AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the authorized agent of the City, in compliance with City policies. 6.COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7.NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail ad dressed as follows: City City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attn: Michael Codron, Community Development Director Contractor Local Government Commission 980 9Th Street, Suite 1700 Sacramento, CA 95814 Attn: Julia Kim, Senior Project Manager, Climate Change 8.AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO, A Municipal Corporation By:_____________________________________ Heidi Harmon, Mayor Item 9 Packet Page 137 Agreement Page 3 ATTEST: _______________________________ City Clerk APPROVED AS TO FORM: Local Government Commission ________________________________ By: _____________________________________ City Attorney Item 9 Packet Page 138 SCOPE OF WORK: Resilient San Luis Obispo INTRODUCTION: The City of San Luis Obispo’s transportation network is critical for regional and statewide connectivity, including all north/south traffic on Highway 101 and State Route 1. With the City serving as the region's economic hub with connectors to surrounding communities, risks to the transportation system have significant implications for people's livelihood and safety, particularly for the large parts of the city that are considered low-income under AB 1550’s designation. Recent studies, particularly the Central Coast Region Report (2018) completed as part of California’s Fourth Climate Change Assessment, reveal that the City (and the region as a whole) are at risk or can anticipate increased risks including exposure to wildfire, a 7-8 degree annual average maximum and minimum temperatures by the end of century relative to the historical period, an average of 26-50 extreme heat days between 2070-2099, and changing precipitation patterns. Known hazards are just the tip of the iceberg of exposures to climate-related hazards faced by the City and its transportation system, as risks are expected to grow as the result of climate change and shifting transportation needs and systems. Furthermore, with the risk of wildfire and flooding increasing in severity and frequency over time, the City must ensure that the transportation system is prepared and adapted to serve as reliable evacuation routes - not just for City residents, but for surrounding communities and the region at-large. Resilient San Luis Obispo aims to take a comprehensive approach to transportation and community adaptation for the City of San Luis Obispo and its regional connections. This project takes a data-driven approach, utilizing best-available science with robust community engagement, to integrate activities along the adaptation planning continuum. A comprehensive vulnerability assessment will be conducted that evaluates current and future hazards to the City's transportation system by assessing hazards and vulnerabilities across existing and planned transportation and physical assets (wastewater treatment, critical infrastructure, and public assets). The assessment will also document social and economic conditions in recognition of the interconnectedness of all sectors and aspects of society, with the transportation system serving as the connective tissue for resiliency, sustainability, safety, and livability. The project will also conduct an adaptation policy audit that reviews local policies for alignment and improvement, as well as state laws. The City aims to reach beyond minimal compliance to state laws in order to serve as a leader for the region and the state of California. In conjunction with the vulnerability assessment and policy audit, the project team will conduct robust community engagement activities that seek to gather input on community needs and priorities, educate community members on climate risks and individual/community resiliency strategies, and involve community members in this comprehensive project. With a strong commitment to equity and environmental justice, the project team will prioritize the engagement of vulnerable at at-risk populations including residents and stakeholders from disadvantaged, and hard-to-reach populations including low-income households, communities of color, tribal communities, youth, and elderly populations. Based on the aforementioned activities, the project team will conduct activities that will define specific adaptation measures and prepare the city to take immediate action. Since the General Plan serves as the foundational planning document that all other plans and policies must be consistent with, this project will update the Safety Element of the General Plan to include a robust adaptation and resilience component. The project will establish specific adaptation goals, objectives, and targets; discuss potential adaptation strategies based on impact and feasibility; consider interdependencies between the City and neighboring jurisdictions to identify actions to pursue at the regional scale, and; assess funding and financing options to pursue the prioritized EXHIBIT A Item 9 Packet Page 139 adaptation strategies. Furthermore, this project will develop an integration guide, working closely with City staff, to integrate adaptation strategies into the Capital Improvement Plan, operational budget, and biennial financial plans. Model policies and work plans will be developed to support the implementation of the top three prioritized adaptation actions. The project team will also conduct a variety of capacity building activities to equip the City, regional agencies, community organizations, and other key stakeholder groups with the technical skills and coordination strategies to successfully implement adaptation measures and build overall community resilience. RESPONSIBLE PARTIES: The City of San Luis Obispo is the proposal applicant and will be the grant recipient. The City will partner with the Local Government Commission (LGC), a 501(c)3 non-profit organization. LGC is included as a sub-applicant on this grant proposal to assist with managing the project and with various project tasks. The project will also be supported with committed staff resources from the San Luis Obispo Council of Governments. The City will select a consultant or team of consultants through a competitive bid process to lead the technical tasks included in this proposal. The selected consultant(s) will have the experience and expertise required to successfully complete the tasks assigned. Responsibilities of each agency/organization are summarized below: •City of San Luis Obispo: The City is the lead applicant for the project and will have overall responsibility for the project. The City will be the grant recipient, execute the Restricted Grant Agreement with Caltrans, and execute contracts with sub-applicant Local Government Commission. The City will conduct a competitive bid process to select a qualified consultant team with expertise in vulnerability assessments and adaptation plans. The City will provide in-kind staff support time (652 hours, valued at $65,200) to surpass the 11.47 percent local cash match. Staff will coordinate with project partners and other key stakeholders, provide data and policy documents, participate in community and local agency workshops, review all work products, direct revisions, and manage the overall project. City staff will prepare quarterly invoices and reports to Caltrans with support from LGC. Staff will also coordinate with partners to help publicize the project and ensure public participation in all aspects of the community planning process. •Local Government Commission (LGC): LGC will assist with project management and overall coordination of the project. LGC will lead the audit of adaptation policies under Task 3, support the development of a Public Safety/Adaptation Plan and Implementation Guide under Task 4, lead a capacity and coordination assessment under Task 6, and provide subject-matter expertise throughout the duration of the project. LGC staff has extensive experience in public engagement in planning processes, land use and transportation and design, climate change adaptation, and in facilitating planning projects. LGC will also place a CivicSpark Fellow locally with the City of San Luis Obispo to support all aspects of the project. The Fellow will be able to provide direct support, as well as connections to other similar projects being conducted throughout the state to share resources and best practices. LGC has worked on more than 70 community design charrettes and also coordinates the statewide Alliance of Regional Collaboratives for Climate Adaptation, the Sacramento region’s Capital Region Climate Readiness Collaborative, and the Bay Area Climate Adaptation Network. Additionally, LGC co- authored an “Integrated Climate Change Adaptation Planning in San Luis Obispo County” report in 2010, and supported the emergence of the Central Coast Climate Collaborative in 2016. For the last 4 years, LGC has successfully implemented the CivicSpark program statewide. Item 9 Packet Page 140 •San Luis Obispo Council of Governments (SLOCOG): SLOCOG will provide in-kind staff support time (40 hours, valued at $4,000) hours of senior staff time to support a variety of tasks, including data and deliverable review, review for consistency with the Regional Transportation Plan, and communication and transfer of project outcomes to the broader region. •Consultant(s): The selected consultant (or team of consultants) will lead all aspects of the Adaptation/Safety Element Background Analysis under Task 2, which includes assessing current and future hazards and conducting a comprehensive vulnerability assessment. The consultant will work with project partners to organize community input meetings and educational seminars under Task 4. The consultant will also lead all aspects of the Public Safety/Adaptation Plan, which includes developing a menu of adaptation strategies under Task 5, developing the Safety Element/Adaptation Plan, and a series of work plans for the top three prioritized implementation activities. Finally, the consultant will play a supporting role in all other aspects of the project to ensure continuity and alignment in final work products, working closely with the City, LGC, and other key stakeholders. OVERALL PROJECT OBJECTIVES: The proposed project and resulting products will address a variety of community sustainability and resilience objectives, including: •Conduct planning activities to help define specific adaptation measures and better prepare the city to take immediate actions. The conceptual project will move the city forward in its later effort to update the city’s General Plan Safety Element.Adopt a comprehensively updated Safety Element of the General Plan based on best-available climate science that provides a broad and effective policy framework for reducing the City’s transportation system’s risk to the impacts of climate change. •Identify and assess vulnerabilities across San Luis Obispo’s existing and planned transportation system, physical assets, and social and economic conditions to identify current and projected areas of risk and vulnerability. •Engage residents and stakeholders, particularly from low-income, disadvantaged, and hard-to-reach populations, to gather input on key vulnerabilities to address and priority adaptation measures to pursue. •Inform residents and stakeholders of current and future climate vulnerabilities, as well as adaptation best practices that can be pursued at the community or individual level. •Identify the City committees and bodies responsible for transportation, public health and safety, and community resilience, as well as community organizations working on climate change issues, and assess their capacity and understanding of adaptation and resilience. •Identify and prioritize adaptation strategies across transportation, public health and safety, and community resilience sectors that can respond to existing and projected risks. Evaluate each adaptation measure based on impact and feasibility. •Develop an Integration Guide and Work Plan that identifies resources and staffing requirements and assignments for implementation of the Adaptation Plan, and aims to apply model policies and ordinances. Integrate adaptation considerations into the City’s budgeting process. Item 9 Packet Page 141 1.Project Initiation and Coordination Initial project planning and ongoing coordination efforts are critical to the success of any project. For project initiation tasks, the City will lead efforts to establish a mutual understanding of project requirements, goals, and tasks with Caltrans and LGC, which will then inform that Request for Proposals and the selected consultant’s role. Throughout the duration of the project, the Project Team will undertake a number of ongoing project planning and coordination activities to ensure that all project goals and requirements are met, within the identified budget and project timeline. Task 1.1: Kickoff Meeting with Caltrans •Hold kickoff meeting with Caltrans District staff to discuss overall project goals, objectives, invoicing, progress reports, and grant procedures, as well as to establish overall project expectations and requirements. •Responsible Party: City Task 1.2: Subcontract with Sub-Applicant •Prepare a subcontract with the Local Government Commission (LGC), the sub- applicant on this grant that will assist with project management and lead several project tasks. •Responsible Party: City Task 1.3: Project Charter and Kickoff •Designate City staff member for project oversight and operations. •Refine project scope, finalize project timeline and milestones, and develop project charter based on submitted application, kickoff meeting with Caltrans, and any new developments in climate science or local activities. •Responsible Party: City Task 1.4: Request for Proposals and Contracting with Consultant(s) •Conduct a full Request for Proposals process that follows the proper procurement procedures established by Caltrans. RFP will be distributed and consultant(s) interviews will be conducted. A consultant (or team of consultants) will be selected and contracts will be negotiated and fully executed. •Responsible Party: City Task 1.5: Project Coordination •Conduct regular project team conference calls and/or in-person meetings with City staff and LGC to ensure constant communication on upcoming tasks to ensure the project remains on time and within budget. Consultant(s) will be included in meetings after they are selected. Other project partners including Caltrans, regional agencies and districts, and other key stakeholders will be invited to participate in team meetings as needed. •Responsible Party: City Task Deliverable 1.1 Meeting summary 1.2 Copy of executed subcontract 1.3 Project Charter 1.4 Copy of procurement procedures and executed consultant contract(s) Item 9 Packet Page 142 1.5 Meeting summaries 2.Existing and Projected Conditions The Project Team will begin by conducting a comprehensive vulnerability assessment to ensure robust understanding of current and future hazards and vulnerabilities specific to the City, as well as to ensure all work products are based on best-available science and local data. This is a critical first step in order to develop the foundational knowledge and analysis that will inform the future planning tasks that follow. More specifically, the Team will review existing hazard assessments and conduct additional research to compile data and maps on the City’s exposure to both current and future hazards. Following the hazards assessment, the Team will conduct a comprehensive vulnerability assessment that evaluates the vulnerability of transportation systems, physical assets, and social and economic conditions. Activities conducted under this task will be continuously informed by community input gathered under Task 4, which will be conducted in parallel with this task. The culminating product will be the Comprehensive Vulnerability Assessment accompanied by risk profiles, GIS datasets and maps, summary memos, and a presentation kit. Task 2.1: Current and Future Hazards Assessment •Review existing hazard assessments including the City’s 2014 Local Hazard Mitigation Plan, the in-process countywide hazard mitigation plan and publicly available hazard maps to build foundational understanding of existing hazards. •Coordinate with related City planning efforts, such as the Community Planning Assistance for Wildfire that will produce downscaled wildland urban interface wildfire maps, in order to maximize the outcomes of this project and to seek alignment across City planning. •Conduct additional research to compile data, models, and maps identifying exposure to natural (e.g., wildfire, seismic activity, drought, flood, extreme heat) and man-made (e.g. diablo canyon, urban conflagration) hazards. •Review existing resources (e.g. Cal-Adapt, California Fourth Assessment climate change reports, etc.) and conduct primary climate research where necessary to project future climate change influenced hazards. Activities will include hydrologic modeling of flood prone creeks (San Luis Obispo Creek and Prefumo Creek) and certain urban areas under expected future precipitation regimes; downscaled heat modeling; regional wind modelling; and site-specific wildfire risk modeling. •Responsible Party: Consultant Task 2.2: Comprehensive Vulnerability Assessment •Compile known and planned transportation assets into a single GIS dataset (including active transportation, roadways, transit, and Caltrans facilities). Overlay hazard maps on identified assets to evaluate areas of vulnerability. •Evaluate existing transportation routes, including evacuation routes and primary commuter routes, and assess risks and vulnerabilities due to climate change and other critical hazards identified. •Identify communities and individuals with inadequate access to transportation, particularly public transit and alternative modes of transportation. •Based on community priorities, identify 3-5 priority transportation assets to develop a full risk profile for, including the cost of inaction. •Evaluate a range of community characteristics, including poverty and unemployment rates, aging populations, and other key characteristics that may suggest greater sensitivity to change, including climate variability, to assess community’s adaptive capacity. Item 9 Packet Page 143 • Identify both current and likely future demographic and economic conditions and systematically assess social and economic vulnerability to known hazards with an emphasis on how the City’s transportation system’s functionality is vulnerable to the expected confluence of climate, economic, and social changes. • Assess how existing transportation system inadequacies also exacerbate social and economic vulnerabilities. • Evaluate how the City’s climate risks and vulnerabilities impact the region’s broader economic resilience and vitality. • Compile known and planned physical assets (e.g. wastewater treatment, critical facilities, and public assets) into a single GIS dataset. Overlay hazard maps with assets to identify areas of vulnerability. • Evaluate interconnectedness of critical infrastructure and transportation system, and develop a prioritization hierarchy for addressing risks and vulnerabilities identified. • Based on community priorities, identify 3-5 priority physical assets to develop a full risk profile for, including the cost of inaction. • Responsible Party: Consultant Task 2.3: Hazards and Vulnerabilities Report • Based on Hazards Assessment (Task 2.1) and Vulnerability Assessment (Task 2.2), develop a comprehensive Hazards and Vulnerabilities Report, including a standalone summary report of key findings. • Compile GIS datasets to produce a comprehensive map that highlights asset- and risk- specific data and models. • Develop a presentation kit that can be utilized to educate and inform local elected officials, City staff, regional agencies, and the community at-large. At minimum, the kit will include digestible summary memos, a PowerPoint presentation, and a poster. • Responsible Party: Consultant Task Deliverable 2.1 Summary memos, map(s), and model(s) for each hazard area 2.2 Risk Profiles for transportation, physical assets, and social and economic conditions; GIS datasets 2.3 Hazards and Vulnerabilities Report; summary report; maps; summary memos; PowerPoint presentation; poster 3. Adaptation Policy Audit In order to effectively respond to climate risks, the City needs a clear picture of what local policy levers for action exist and how this might relate to or respond to state policies. As local hazards and vulnerabilities are being assessed, the Project Team will begin to conduct a thorough review of adaptation policies at the local level in order to determine current gaps and provide policy recommendations for increasing resilience across the City. Part of this assessment aims to establish a clear vision for community resilience and identify common strategies across multiple plans that can be implemented to catalyze action, gain political and public support, and achieve multiple City objectives. This local review will be complemented by a state law compliance timeline that identifies a recommended path forward for the City to address key state policy and planning requirements and actions in order to meet state adaptation and transportation goals. Task 3.1: Local Policy Audit Item 9 Packet Page 144 •Review existing City plans, programs, and policies (e.g. general plan, climate action plan, local ordinances, permitting, and zoning), as they relate to adaptation and/or transportation planning, to assess the City’s current approach to community resilience and maintaining an economically viable and socially just community in the face of systems disturbance. •Develop a policy crosswalk to identify areas of misalignment and/or potential for improvement to increase adaptive capacity and build community resilience, including strategies discussed across multiple plans that should be prioritized by the City. •Based on the policy audit and crosswalk, establish a clear vision for community resilience that City departments can adopt as a guiding compass. Promote this vision broadly to gain support from local elected officials, neighboring jurisdictions, and the broader community. •Responsible Party: LGC Task 3.2: State Law Compliance Timeline •Identify local policy and planning requirements, as they relate to adaptation and transportation, in order to comply with and go beyond existing state laws and mandates to serve as a model for the region and state. •Define local goals and objectives as they relate to State legal requirements and broader State targets to identify priority strategies to achieve shared goals. •Establish a timeline for alignment and compliance while conducting a crosswalk of other City goals, plans, and existing policies and programs. •Responsible Party: LGC Task Deliverable 3.1 Summary of plans and policies reviewed; policy crosswalk; community resilience vision 3.2 Summary of state laws; timeline for alignment and compliance 4.Community Outreach and Education As with any community planning or development process, the community engagement efforts for this project will help to affirm community values, needs, and aspirations while ultimately driving the development of the Public Safety/Adaptation Plan (Task 5) so that it reflects and advances the community’s vision for the future. To support this goal, LGC will work closely with the City and other key community partners to conduct numerous community engagement activities. By using a participatory process, the Project Team can help broaden the dialogue with residents and businesses within the community and stimulate continued engagement and strengthen social capital within the City of San Luis Obispo during and after the project period. In recognition of the critical roles that residents and businesses play in building community resilience, the Project Team will conduct activities that aim to gather input on key priorities, needs, concerns, obstacles, and opportunities while educating community members on the findings from the Hazards and Vulnerabilities Assessment (Task 2) and rallying community members behind a shared vision. Input from the community will directly feed into the development of the Public Safety/Adaptation Plan, as well as recommendations to the City on potential policy actions to take. Task 4.1: Community Outreach Plan •Develop a Community Outreach Plan that details steps that will be taken to reach out to and engage community members. The Plan will include: Item 9 Packet Page 145 o A list of key stakeholders to involve and engage, including public officials and agency staff, businesses, service organizations, community organizations, neighborhood leaders and residents, the school district and nearby schools, property owners, and other interest groups that reflect the demographics and perspectives of the San Luis Obispo community. o An evaluation of various community engagement strategies, including surveys, pop-ups, traditional workshops, community design charrettes, webinars, and festive activities that can be utilized. o A schedule of community engagement activities with timing for release, distribution, and placement of publicity items. The Project Team aims to conduct a series of activities throughout the duration of the project (e.g. input, feedback, and dissemination). o A list of potential co-sponsors and co-promoters to assist with outreach and procurement of additional materials (e.g. food, prizes, and entertainment) to maximize participation and positive input at community events. •Responsible Party: LGC Task 4.2: Community Engagement Activities •Conduct at least 4 community engagement activities to solicit input on community needs, concerns, and priorities in regards to transportation infrastructure and services, climate hazards and vulnerabilities, and other sectors and factors critical to achieving community resilience, mobility, and social justice goals. •Produce and distribute outreach materials in English, Spanish, and other languages as needed to encourage broad public participation. Secure translation services, as needed, for community engagement activities. •Identify additional stakeholder groups to conduct targeted meetings with such as local tribes, health professionals, major industries and employers, and regional agencies. •Develop meeting summaries to inform the development of the Public Safety/Adaptation Plan and Implementation Guide (Task 5). •Responsible Party: LGC Task 4.3: Educational Events •Host at least 4 climate science and adaptive capacity building events for the public with the aim of educating community members about current and future climate vulnerabilities in the City, and public safety and adaptation best practices that can be pursued at the community and/or individual level. •Evaluate different types of events that can be organized to appeal to different types of stakeholders (e.g. trivia night, lecture series, and videos). •Coordinate with external organizations (e.g. Central Coast Climate Collaborative, NOAA, USGS, and Cal Poly, San Luis Obispo) to identify educational materials, programs, or events that could be provided to the public. •Responsible Party: LGC Task Deliverable 4.1 Community Outreach Plan 4.2 Agendas; summaries; participant lists 4.3 Agendas; summaries; participant lists 5.Safety Element of the General Plan Item 9 Packet Page 146 All findings and products from previous tasks will serve as the foundation for developing the update to the Safety Element of the General Plan, which will becomes the City’s adopted . The work funded in this grant will support the adaptation and climate resilience component of the Safety Element because the General Plan is the foundational planning document which all other plans and policies must be consistent with. Although focused on the Safety Element, the work will inform numerous in process and upcoming planning projects including the City’s Active Transportation Plan, Housing Element of the General Plan, Parking and Access Plan, etc. The Project Team will first develop a menu of adaptation options and objectives for decision- makers to evaluate and select those most suitable for the City. The Team will then develop a robust Adaptation Strategy that identifies specific actions, cost estimates, timelines for implementation, and funding and financing options. As a corollary to the Strategy, the Team will prepare an Integration Guide and work plans for the top three prioritized implementation actions to enable the City to begin moving towards implementation immediately upon adoption. The Project Team will work with City staff to gain buy-in from local elected officials, agency executives, and staff across key departments in order to build a shared understanding of the City’s adaptation goals, as well as to prioritize, implement, and operationalize the Adaptation Strategy. With many people - beyond the City’s own residents - relying on the City’s transportation system in order to commute to work, the City recognizes the important role it must play in ensuring its transportation systems and networks are well-adapted to the growing impacts of climate change. As such, the Adaptation Strategy will evaluate strategies that should be implemented regionally, and will also be promoted and shared with neighboring jurisdictions and key regional agencies to seek overall alignment and mutual support. Task 5.1: Menu of Adaptation Options •Establish specific adaptation goals, objectives, and targets based on Hazards and Vulnerabilities Assessment (Task 2), local policy audit (Task 3), overarching community resilience vision (Task 3), and public input (Task 4). Consider City’s role in the regional economy, as the primary location of major employers, and the need to ensure transportation networks are well-adapted for both residents and commuters who rely upon infrastructure and services. Include specific targets that achieve both adaptation and transportation goals. •Develop potential adaptation strategies that address current and future hazards and vulnerabilities in a changing climate, while addressing community priorities. Review existing resources including Cal-Adapt, the Adaptation Clearinghouse, Fourth Assessment reports, the Adaptation Planning Guide, and local adaptation plans to develop a menu of options. •Working closely with City staff, rank adaptation strategies based on feasibility, impact, and other key criteria determined to identify priority strategies for inclusion in Adaptation Strategy. At minimum, priority strategies should be financially feasible and socially just, and align with community input gathered. •Responsible Party: Consultant Task 5.2: Safety Element of the General Plan Update •Develop General Plan adaptation and resilience strategies that identify short-, medium-, and long-term adaptation actions and opportunities. Based on feasibility analysis (Task 5.1), provide recommendations for overcoming any obstacles or barriers identified. For each action, include, at minimum, a cost estimate, high-level timeline for implementation, and the City department that should lead or coordinate. •Consider interdependencies between City and neighboring jurisdictions to identify policies and actions that should be pursued at the regional scale. Item 9 Packet Page 147 •Assess funding and financing options available to pursue priority strategies identified, including Federal, State and Local grants, local tax measures, PACE financing, EIFDs, Opportunity Zones, and other innovative funding and financing mechanisms. •Note: CEQA compliance for the General Plan update will be conducted by the City and will not be funded through this grant request. •Responsible Party: Consultant Task 5.3: Integration Guide and Work Plans •Develop an Integration Guide, working closely with City staff, for the integration of the Safety Element adaptation and resilience strategies with the Capital Improvement Plan, operational budgets, biennial financial plans, and other key plans and procedures identified by the City. •Identify and/or develop model policies, ordinances, and resolutions to begin implementing policy and process changes committed to in the Safety Element. Policies should respond to existing and future hazards and vulnerabilities across key sectors including transportation, public health and safety, natural resources, and community development. •Work with City to identify staffing requirements and assignments, and develop detailed work plans to implement the top three prioritized implementation actions identified in the Adaptation Strategy. •Responsible Party: Consultant Task Deliverable 5.1 Matrix of adaptation options 5.2 Updated Safety Element 5.3 Integration Guide; work plans 6.Capacity Building While the Safety Element will present a clear path forward for the City to begin implementing adaptation initiatives, plans alone are never enough. In order to move towards a more holistic approach to building resilience, it is essential to build capacity among key City departments and staff, as well as bolster coordination efforts. This task will begin with a Capacity and Coordination Assessment, which will ultimately develop an “organizational chart” of City departments, committees, and bodies, as well as regional agencies, climate change organizations, and community-based organizations working on climate change issues. The Assessment will evaluate existing roles and capacities of the various organizations identified. The Project Team will then conduct a series of capacity building activities for City staff, utilizing the new Adaptation Capability Advancement (Adapt-CA) Toolkit, developed as part of California’s Fourth Climate Change Assessment. Furthermore, the Team will examine current coordination and communication practices among departments and organizations that have overlapping responsibilities for adaptation actions, and produce recommendations for enhancing coordination efforts and mainstreaming adaptation activities. Finally, in an effort to seek regional alignment and to further the broader field of adaptation in California, the Team will conduct a series of regional and statewide dissemination activities. Task 6.1: Capacity and Coordination Assessment •Review purviews of all City departments, committees, and bodies to assess who is responsible for transportation, public health and safety, and community resilience; their Item 9 Packet Page 148 capacity and understanding of adaptation and resilience; and the level of coordination across the City bodies. •Interview City staff, regional agencies, climate change organizations, community- based organizations, and other key stakeholder groups to increase understanding of roles, capacity, and interest in coordination. •Develop an “organizational chart” that provides a full picture of public and non-public agencies working on climate issues, and provide a set of recommendations for improving coordination efforts. •Responsible Party: LGC Task 6.2: Capacity Building Activities •Based on the ecosystem of various entities, stakeholders, and organizations working on public safety and adaptation, conduct internal capacity building activities including at least 4 seminars, workshops, webinars, and/or coordination meetings for City staff to increase understanding of climate risks, discuss priority adaptation strategies, institutionalize adaptation principles, and establish internal coordination processes. •Establish mechanisms for ongoing coordination and collaboration for City staff to engage with key external stakeholders (e.g. Central Coast Climate Collaborative, FEMA, Cal FIRE, and regional transit agencies). •Responsible Party: LGC Task 6.3: Statewide Dissemination •Coordinate with key project partners to write a summary report to help other jurisdictions learn from the project and replicate it throughout the state. •Share results and report with other climate adaptation focused groups including the Alliance of Regional Collaboratives for Climate Adaptation and its member collaboratives in the Central Coast, North Coast, Sacramento Capital Region, San Francisco Bay Area, Sierra Nevada, Los Angeles County, and San Diego County. •Hold at least one webinar to share project results, with target audience of local jurisdictions and agencies in the Central Coast region, Caltrans staff, transportation agencies, public health groups, and other key stakeholders throughout California. •Develop a case study for ICARP for inclusion in Adaptation Clearinghouse and to further disseminate project results and key findings. •Responsible Party: LGC Task Deliverable 6.1 Org chart; summary of roles/capacity; recommendations memo 6.2 Meeting agendas; meeting summaries; participant lists 6.3 Project summary report; webinar; case study 7.Administration Grant administration - including accounting, invoicing, submission of progress reports, and provision of documentation as required by Caltrans - will be managed by the City of San Luis Obispo. Task 7.1: Invoicing •Provide clear and detailed invoices to Caltrans on a quarterly basis. •Responsible Party: City Item 9 Packet Page 149 Task 7.2: Reporting •Provide clear and detailed reports to Caltrans on a quarterly basis. •Responsible Party: City Task Deliverable 7.1 Quarterly invoices to Caltrans 7.2 Quarterly reports to Caltrans Item 9 Packet Page 150 1 LGC SCOPE OF WORK Resilient San Luis Obispo ABOUT THE LOCAL GOVERNMENT COMMISSION (LGC) The Local Government Commission (LGC) is a 501(c)3 non-profit organization working with local leaders to create livable communities throughout the state of California. As a pioneer in California’s adaptation field, LGC provides thought leadership and technical assistance to help shape California State policies, support regional climate collaboratives, and assist local communities in building resilience. LGC’s hallmark adaptation programs include the Alliance of Regional Collaboratives for Climate Adaptation, the Capital Region Climate Readiness Collaborative, and the biennial statewide California Adaptation Forum. LGC also participated in California’s Fourth Climate Change Assessment to identify strategies to overcome institutional and financial barriers to implementing adaptation strategies, as well as numerous other research projects and place-based initiatives focused on climate adaptation and community resilience. Specifically, in the San Luis Obispo area, LGC co-authored the Integrated Climate Change Adaptation Planning in San Luis Obispo County Report in 2010 and helped to guide the formation of the Central Coast Climate Collaborative in 2016. SUMMARY OF LGC’S ROLE LGC will serve as the lead project manager to ensure effective coordination across the project team in order to meet the objectives of the project. LGC will work closely with City staff in all aspects of managing the project, reviewing project deliverables, and collaborating with consultants. The project is a comprehensive plan for transportation and community adaptation and resilience for the City and its regional connections. LGC will lead Tasks 3, 4, and 6, and provide high-level support for Tasks 2 and 5. LGC will also place a CivicSpark Fellow locally with the City to support all aspects of the project. The Fellow will be able to provide direct support, as well as connections to other similar projects being implemented throughout the state to exchange resources and best practices. LGC SCOPE OF WORK Task 1: Project Initiation and Coordination LGC will lead all aspects of project coordination, working closely with City staff. Task 1.1: Kickoff Meeting with Caltrans • N/A Task 1.2: Subcontract with Sub-Applicant • Work with the City to prepare and execute a subcontract for LGC. Task 1.3: Project Charter and Kickoff Item 9 Packet Page 151 2 • Coordinate with City staff to develop a Project Charter, which will include the final project timeline, milestones, deliverables, key contacts, communication protocols, team expectations, and other elements to guide the project team. • Organize a project team kickoff meeting after the consultant is hired to review the Project Charter, clarify roles and expectations, and discuss initial tasks. The meeting may be conducted in-person or virtually. Task 1.4: Request for Proposals and Contracting with Consultant(s) • Support the City in conducting a Request for Proposals (RFP), including reviewing the draft RFP and disseminating the RFP to LGC networks. • Lead the review process in close coordination with the City, including selecting the review committee, developing the selection criteria and scoring sheets, and scheduling interviews. Task 1.5: Project Coordination • Conduct regular project team meetings to ensure ongoing coordination on project tasks and deliverables, foster collaboration, and exchange relevant information and resources. Develop meeting agendas and summaries, and coordinate with team members to follow up on requests, actions, and needs identified at each meeting. • Identify and utilize project management tools to support ongoing coordination between team meetings. • Work with City staff and consultants to ensure that the project remains on time and within the allocated budget. Task LGC Deliverable 1.1 N/A 1.2 1.3 Project Charter, kickoff meeting agenda 1.4 RFP review committee roster, scoring sheets 1.5 Meeting summaries Task 2: Existing and Projected Conditions LGC will support Task 2 by providing guidance, connections, and review of draft products. Task 2.1: Current and Future Hazards Assessment • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft summary memos of current and future hazards assessments to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task 2.2: Comprehensive Vulnerability Assessment Item 9 Packet Page 152 3 • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft risk profiles as part of the Comprehensive Vulnerability Assessment to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task 2.3: Hazards and Vulnerabilities Report • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft Hazards and Vulnerabilities Report and associated presentation kit to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task Deliverable 2.1 Summary of feedback 2.2 Summary of feedback 2.3 Summary of feedback Task 3: Adaptation Policy Audit LGC will lead all aspects of Task 3, working closely with City staff. LGC will conduct a thorough review of local policies and plans related to adaptation in order to develop policy recommendations, establish a clear vision for community resilience, and identify common strategies that can be implemented to catalyze action, gain political and public support, and achieve multiple City objectives. This local review will be complemented by a state law compliance timeline that identifies a recommended path forward for the City to address key state policy and planning requirements and actions in order to meet state adaptation and transportation goals. Task 3.1: Local Policy Audit • Review existing City plans, programs, and policies (e.g. general plan, climate action plan, local ordinances, permitting, and zoning), as they relate to adaptation and/or transportation planning, to assess the City’s current approach to community resilience and maintaining an economically viable and socially just community in the face of systems disturbance. • Develop a policy crosswalk to identify areas of misalignment and/or potential for improvement to increase adaptive capacity and build community resilience, including strategies discussed across multiple plans that should be prioritized by the City. • Based on the policy audit and crosswalk, establish a clear vision for community resilience that City departments can adopt as a guiding compass Task 3.2: State Law Compliance Timeline • Identify local policy and planning requirements, as they relate to adaptation and transportation, in order to comply with and go beyond existing state laws and mandates to serve as a model for the region and state. Item 9 Packet Page 153 4 • Define local goals and objectives as they relate to State legal requirements and broader State targets to identify priority strategies to achieve both locally-defined and state-mandated goals. • Establish a timeline for alignment and compliance while conducting a crosswalk of other City goals, plans, and existing policies and programs. Task Deliverable 3.1 Summary of plans and policies reviewed; policy crosswalk; community resilience vision 3.2 Summary of state laws; timeline for alignment and compliance Task 4: Community Outreach and Education LGC will lead all aspects of Task 4, working closely with City staff. As with any community planning or development process, the community engagement efforts for this project will help to identify and affirm community values, needs, and aspirations while ultimately driving the development of the Public Safety/Adaptation Plan (Task 5) so that it reflects and advances the community’s vision for the future. To support this goal, LGC will work closely with the City and other key community partners to conduct numerous community engagement activities. By using a participatory process, the Project Team can help broaden the dialogue with residents and businesses within the community and stimulate continued engagement and strengthen social capital within the City of San Luis Obispo during and after the project period. In recognition of the critical roles that residents and businesses play in building community resilience, the Project Team will conduct activities that aim to gather input on key priorities, needs, concerns, obstacles, and opportunities while educating community members on the findings from the Hazards and Vulnerabilities Assessment (Task 2) and rallying community members behind a shared vision. Input from the community will directly feed into the development of the Public Safety/Adaptation Plan, as well as recommendations to the City on potential policy actions to take. Task 4.1: Community Outreach Plan • Develop a Community Outreach Plan that details steps that will be taken to reach out to and engage community members. The Plan will include: o A list of key stakeholders to involve and engage, including public officials and agency staff, businesses, service organizations, community organizations, neighborhood leaders and residents, the school district and nearby schools, property owners, and other interest groups that reflect the demographics and perspectives of the San Luis Obispo community. o An evaluation of various community engagement strategies, including surveys, pop- ups, traditional workshops, community design charrettes, webinars, and festive activities that can be utilized. o A schedule of community engagement activities with timing for release, distribution, and placement of publicity items, with a goal of conducting a series of activities throughout the duration of the project (e.g. input, feedback, and dissemination). o A list of potential co-sponsors and co-promoters to assist with outreach and procurement of additional materials (e.g. food, prizes, and entertainment) to maximize participation and positive input at community events. Item 9 Packet Page 154 5 Task 4.2: Community Engagement Activities • Conduct at least 4 community engagement activities to solicit input on community needs, concerns, and priorities in regard to transportation infrastructure and services, climate hazards and vulnerabilities, and other sectors and factors critical to achieving community resilience, mobility, and social justice goals. Promote community resilience vision developed as part of Task 3.1 to gain support from broader community. • Produce and distribute outreach materials in English, Spanish, and other languages as needed to encourage broad public participation. Secure translation services, as needed, for community engagement activities. • Identify additional stakeholder groups to conduct targeted meetings with such as local tribes, health professionals, major industries and employers, and regional agencies. • Develop meeting summaries to inform the development of the Public Safety/Adaptation Plan and Implementation Guide (Task 5). Task 4.3: Educational Events • Host at least 4 climate science and adaptive capacity building events for the public with the aim of educating community members about current and future climate vulnerabilities in the City, and public safety and adaptation best practices that can be pursued at the community and/or individual level. Promote community resilience vision developed as part of Task 3.1 to gain support from broader community. • Evaluate different types of events that can be organized to appeal to different types of stakeholders (e.g. trivia night, lecture series, and videos). • Coordinate with external organizations (e.g. Central Coast Climate Collaborative, NOAA, USGS, and Cal Poly, San Luis Obispo) to identify educational materials, programs, or events that could be provided to the public. Task Deliverable 4.1 Community Outreach Plan 4.2 Agendas, summaries, and participant lists from 4 events 4.3 Agendas, summaries, and participant lists from 4 events Task 5: Safety Element of the General Plan LGC will support Task 5 by providing guidance, connections, and review of draft products. Task 5.1: Menu of Adaptation Options • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft Menu of Adaptation Options to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task 5.2: Safety Element of the General Plan Update Item 9 Packet Page 155 6 • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft Safety Element to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task 5.3: Integration Guide and Work Plans • Share resources, provide guidance, and connect consultants to additional subject-matter experts, as requested. • Review the draft Integration Guide and Work Plans to provide suggestions for improvement, including alignment with deliverables from other project tasks. Task Deliverable 5.1 Summary of feedback 5.2 Summary of feedback 5.3 Summary of feedback Task 6: Capacity Building LGC will lead all aspects of Task 6, working closely with City staff. This task will begin with a Capacity and Coordination Assessment, which will ultimately develop an “organizational chart” of City departments, committees, and bodies, as well as regional agencies, climate change organizations, and community- based organizations working on climate change issues. The Project Team will then conduct a series of capacity building activities for City staff, utilizing the Adaptation Capability Advancement (Adapt-CA) Toolkit, developed as part of California’s Fourth Climate Change Assessment. LGC will examine current coordination practices among departments and organizations that have overlapping responsibilities for adaptation actions and produce recommendations for enhancing coordination efforts and mainstreaming adaptation activities. Finally, in an effort to seek regional alignment and to further the broader field of adaptation in California, LGC will conduct a series of regional and statewide dissemination activities. Task 6.1: Capacity and Coordination Assessment • Review purviews of all City departments, committees, and bodies to assess who is responsible for transportation, public health and safety, and community resilience; their capacity and understanding of adaptation and resilience; and the level of coordination across the City bodies. • Interview City staff, regional agencies, climate change organizations, community-based organizations, and other key stakeholder groups to increase understanding of roles, capacity, and interest in coordination. • Develop an “organizational chart” that provides a full picture of public and non-public agencies working on climate issues and provide a set of recommendations for improving coordination efforts. Task 6.2: Capacity Building Activities • Based on the ecosystem of various entities, stakeholders, and organizations working on public safety and adaptation, conduct internal capacity building activities including at least 4 Item 9 Packet Page 156 7 seminars, workshops, webinars, and/or coordination meetings for City staff to increase understanding of climate risks, discuss priority adaptation strategies, institutionalize adaptation principles, and establish internal coordination processes. • Establish mechanisms for ongoing coordination and collaboration for City staff to engage with key external stakeholders (e.g. Central Coast Climate Collaborative, FEMA, Cal FIRE, and regional transit agencies). • Promote community resilience vision developed as part of Task 3.1 to gain support from City leaders and staff across departments. Task 6.3: Statewide Dissemination • Coordinate with key project partners to write a summary report to help other jurisdictions learn from the project and replicate it throughout the state. • Share results and report with other climate adaptation focused groups including the Alliance of Regional Collaboratives for Climate Adaptation and its member collaboratives in the Central Coast, North Coast, Sacramento Capital Region, San Francisco Bay Area, Sierra Nevada, Los Angeles County, and San Diego County. • Hold at least one webinar to share project results, with target audience of local jurisdictions and agencies in the Central Coast region, Caltrans staff, transportation agencies, public health groups, and other key stakeholders throughout California. • Develop a case study for ICARP for inclusion in Adaptation Clearinghouse and to further disseminate project results and key findings. Task Deliverable 6.1 Org chart; summary of roles/capacity; recommendations memo 6.2 Meeting agendas; meeting summaries; participant lists 6.3 Project summary report; webinar; case study Task 7: Administration LGC will provide clear and detailed invoices and reports to the City on a quarterly basis. Task 7.1: Invoicing • Provide clear and detailed invoices to the City on a quarterly basis. Task 7.2: Reporting • Provide clear and detailed reports to the City on a quarterly basis. Task Deliverable 7.1 Quarterly invoices 7.2 Quarterly reports Item 9 Packet Page 157 Julia Kim Director of Climate and Energy Programs Grace Kaufman Project Manager Amber McGarvey Project Associate CivicSpark Fellow Direct Expenses Description Subtask Total Task Total $124 $75 $66 $20 #TASK LGC DELIVERABLES 1 Project Initiation 1 Kickoff Meeting with Caltrans $0 $21,145 1 Subcontract with Sub-Applicant $0 1 Project Charter and Kickoff Project Charter, kickoff meeting agenda 10 25 $3,115 1 Request for Proposals and Contracting with Consultant(s) RFP review committee roster, scoring sheets 10 6 $1,690 2 Project Coordination Meeting summaries 40 120 30 20 $16,340 2 Existing and Projected Conditions 2 Current and Future Hazards Assessment Summary of feedback 20 15 $3,605 $10,815 2 Comprehensive Vulnerability Assessment Summary of feedback 20 15 $3,605 2 Hazards and Vulnerabilities Report Summary of feedback 20 15 $3,605 3 Adaptation Policy Audit 3 Local Policy Audit Summary of plans and policies reviewed; policy crosswalk; community resilience vision 15 80 45 50 $11,830 $19,710 3 State Law Compliance Timeline Summary of state laws; timeline for alignment and compliance 10 40 40 50 $7,880 4 Community Outreach and Education 4 Community Outreach Plan Community Outreach Plan 10 25 50 100 $8,415 $50,135 4 Community Engagement Activities Agendas; summaries; participant lists 15 80 100 200 $2,400 Assumes 3 trips (each trip: $300 transportation, $150 lodging, $50 meals); Event supplies and refreshments ($300 for each event) $20,860 4 Educational Events Agendas; summaries; participant lists 15 80 100 200 $2,400 Assumes 3 trips (each trip: $300 transportation, $150 lodging, $50 meals); Event supplies and refreshments ($300 for each event) $20,860 5 Safety Element of the General Plan 5 Menu of Adaptation Options Summary of feedback 20 15 100 $5,605 $16,815 5 Safety Element of the General Plan Update Summary of feedback 20 15 100 $5,605 5 Integration Guide and Work Plans Summary of feedback 20 15 100 $5,605 6 Capacity Building 6 Capacity and Coordination Assessment Org chart; summary of roles/capacity; recommendations memo 10 40 30 175 $9,720 $26,880 6 Internal Capacity Building Activities for City Staff Meeting agendas; meeting summaries; participant lists 30 60 30 175 $500 Assumes 1 trip ($300 transportation, $150 lodging, $50 meals) $14,200 6 Statewide Dissemination Project summary report; webinar; case study 5 10 15 30 $2,960 7 Administration 7 Invoicing Quarterly invoices 10 $750 $2,250 7 Reporting Quarterly reports 20 $1,500 Total hours 290 686 440 1300 $5,300 $147,750 LGC Budget & Staffing Allocations Item 9 Packet Page 158 EXHIBIT B GENERAL TERMS AND CONDITIONS 1.Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of the City’s Request for Proposal referenced in paragraph 2 of the Agreement, unless changes are otherwise approved and agreed to in writing between the parties. If the Agreement is entered into outside of a Request for Proposal, Contractor shall provide proof of insurance in the form in the form coverages and amounts specified in Exhibit B 2.Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 3.Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 4.Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5.Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6.Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7.Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8.Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9.Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10.Immigration Act of 1986. The Contractor warrants on behalf of itself and all Item 9 Packet Page 159 subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 11.Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12.Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 13.Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 14.Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15.Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16.Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17.Hold Harmless and Indemnification. (a)Non-design, non-construction Professional Services: To the fullest extent permitted by Item 9 Packet Page 160 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 Item 9 Packet Page 161 under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 18.Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 19.Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 20.Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in Item 9 Packet Page 162 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. Item 9 Packet Page 163 EXHIBIT C INSURANCE RQUREIMENTS___________________________________________________ Consultant Services 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 a 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: Contractor shall maintain commercial general liability insurance with coverage at least as broad as insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 2.Automobile Liability: Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Vendor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less that $1,000,000 combined single limit for each accident. 3.Employer’s Liability: Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to the City along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. 4.Errors and Omissions Liability: Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period of no less than three years after completion of the services required by this Agreement. 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. Item 9 Packet Page 164 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 Contract tor; or automobiles owned, leased, hired or borrowed b the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, 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 t that co verage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less that A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsement 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. Item 9 Packet Page 165 ADAPTATION GRANTS (STATE) RESTRICTED GRANT AGREEMENT City of San Luis Obispo Agreement Number 74A 1165 Page 1 of 16 THIS RESTRICTED GRANT AGREEMENT (RGA), between the State of California acting by and through its Department of Transportation, referred to herein as CAL TRANS, and the City of San Luis Obispo, hereinafter referred to as AGENCY, will commence on November 15, 2019, or upon approval by CAL TRANS, whichever occurs later. This RGA is of no effect unless approved by CAL TRANS. AGENCY shall not receive payment for work performed prior to approval of the RGA and before receipt of Notice to Proceed by the CAL TRANS Contract Manager. This RGA shall expire on February 28, 2022. RECITALS 1. Under this RGA, CAL TRANS intends to convey State restricted grant funds to AGENCY, pursuant to Budget Act Line Item 2660-101-0046T, who will conduct transportation studies and planning within the regional area under the jurisdiction of AGENCY under the terms, covenants and conditions of this RGA. 2. CAL TRANS and AGENCY intend that only funds that are authorized as restricted grants will be subject to this RGA, and that no funds that should be the subject of a Joint Powers Agreement, lnteragency Agreement, or other non-grant agreement shall be subject to this RGA. NOW, THEREFORE, based upon the terms, covenants and conditions of this RGA, the parties agree as follows: SECTION I AGENCY AGREES: To timely and satisfactorily complete all Project Work described in Attachment II within the project budget and in accordance with the items of this RGA. SECTION II CAL TRANS AGREES: That when conducting an audit of the costs claimed by AGENCY under the provisions of this RGA, to conduct the audit in accordance with applicable laws and regulations. SECTION Ill IT IS MUTUALLY AGREED: 1. Under this RGA, CAL TRANS will convey State grant restricted funds to AGENCY, pursuant to Budget Act Line Item 2660-101-0046T, and AGENCY will conduct transportation studies and planning within the regional area described in Attachment II. The funds subject to this RGA must be (a) identified as available for a restricted grant in CAL TRANS's budget and (b) for the purpose of conducting transportation studies or planning and (c) to a public entity that is responsible for conducting transportation studies or planning. Item 9 Packet Page 166 City of San Luis Obispo Agreement Number 74A1165 Page 2 of 16 2. Under this restricted grant, funds may be only used for the purpose set forth in RGA, Resolution (Attachment I), Scope of Work and Project timeline (Attachment II), and the applicable Grant Application Guide, available upon request, and funds may only be used for costs and expenses that are directly related to such purpose. 3. AGENCY shall perform all the duties and obligations described in the "Resilient San Luis Obispo", hereinafter the Project, subject to the terms and conditions of this RGA and the Approved Project Grant Application (Scope of Work and Project timeline}, which are attached hereto as Attachment II. 4. The resolution authorizing AGENCY to execute this RGA pertaining to the above described Project is attached hereto as Attachment I. 5. All services performed by AGENCY pursuant to this RGA shall be performed in accordance with California Senate Bill No. 1 (SB-1) (Chapter 5, Statutes of 2017), also known as the Road Repair and Accountability Act of 2017, including, but not limited to, Government Code Section 14460(a)(1), as well as all applicable Federal, State, and Local laws, regulations, and ordinances, all applicable CAL TRANS policies and procedures, and all applicable CAL TRANS published manuals, including, but not limited to, the applicable Grant Application Guide, applicable upon request. California Government Code Section 14460(a)(1) provides: "The department [CAL TRANS], and external entities that receive state and federal transportation funds from the department, are spending those funds efficiently, effectively, economically, and in compliance with applicable state and Federal requirements. Those external entities include, but are not limited to, private for profit and nonprofit organizations, local transportation agencies, and other local agencies that receive transportation funds either through a contract with the department or through an agreement or grant administered by the department." In case of conflict between Federal, State and Local laws, regulations, and ordinances, and/or any applicable policies, procedures, or published manuals of either CAL TRANS or AGENCY, the order of precedence of the applicability of same to this RGA shall be established in this order: 1) Federal laws and regulations; 2) California laws and regulations; 3) CAL TRANS policies, procedures, and published manuals; 4) Local ordinances; and 5) AGENCY policies, procedures, and published manuals. This RGA may not include any federal funds. 6. Project funding is as follows: FUND TITLE FUND SOURCE DOLLAR AMOUNT Public Transportation State $435,250.00 Account (PTA) LOCAL MATCH Agency Provided $56,400.00 In-Kind Local Match Agency Provided $4,000.00 Total Project Costs $495,650.00 No in-kind contributions may be made unless the amount and type of the contribution is identified above. 7. This RGA is exempt from the legal review and approval by the Department of General Services, pursuant to Legal Opinions of the Attorney General: 58 Ops. Cal. Atty. Gen. 586 (1975), 63 Ops. Cal. Atty. Gen. 290 (1980), 74 Ops. Cal. Atty. Gen. 10 (1991), and 88 Ops. Cal. Atty. Gen. 56. Item 9 Packet Page 167 8. Notification of Parties a. AGENCY's Project Manager for PROJECT is Michael Codron. City of San Luis Obispo Agreement Number 74A1165 Page 3of16 b. CAL TRANS' Contract Manager is Cindy Utter. "Contract Manager" as used herein includes his/her designee. c. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses: City of San Luis Obispo Attention: Michael Codron Phone Number: (805) 781-7187 Email: mcodron@slocity.org 990 Palm Street San Luis Obispo, CA 93401 California Department of Transportation District 5/Transportation Planning Attention: Cindy Utter, Contract Manager Phone Number: (805) 549-3648 Email: cindy.utter@dot.ca.gov 50 Higuera Street San Luis Obispo, CA 93401 9. Period of Performance a. Reimbursable work under this RGA shall begin no earlier than on November 15, 2019, following the written approval of CAL TRANS and AGENCY'S receipt of the Notice to Proceed letter of this RGA by the CAL TRANS Contract Manager, and will expire on February 28, 2022. b. AGENCY will attend a kickoff meeting with CAL TRANS to be scheduled within one (1) week from receipt of Notice to Proceed letter by the CAL TRANS Contract Manager. 10. Changes in Terms/Amendments This RGA may only be amended or modified by mutual written agreement of the parties. 11. Cost Limitation a. The maximum total amount granted and reimbursable to AGENCY pursuant to this RGA by CAL TRANS shall not exceed $435,250.00. b. It is agreed and understood that this RGA fund limit is an estimate and that CAL TRANS will only reimburse the cost of services actually rendered in accordance with the provisions of this RGA and as authorized by the CAL TRANS Contract Manager at or below that fund limitation established herein. Item 9 Packet Page 168 12. Termination City of San Luis Obispo Agreement Number74A1165 Page 4 of 16 a. CAL TRANS reserves the right to terminate this RGA upon written notice to AGENCY at least 30 days in advance of the effective date of such termination in the event CAL TRANS determines (at its sole discretion) that AGENCY failed to proceed with PROJECT work in accordance with the terms of this RGA. In the event of termination for convenience, CAL TRANS will reimburse AGENCY for all allowable, authorized and non-cancelled costs up to the date of termination b. This RGA may be terminated by either party for any reason by giving written notice to the other party at least 30 days in advance of the effective date of such termination. In the event of termination for convenience, CAL TRANS will reimburse AGENCY for all allowable, authorized, and non-cancelled costs up to the date of termination. c. AGENCY has 60 days after the Termination Date to submit accurate invoices to CAL TRANS to make final allowable payments for Project costs in accordance to the terms of this RGA. Failure to submit invoices within this period of time shall result in a waiver by AGENCY of its right to reimbursement of expended costs. 13. Budget Contingency Clause a. It is mutually agreed that if the US Congress or the State Legislature fail to appropriate or allocate funds during the current year and/or any subsequent years covered under this RGA do not appropriate sufficient funds for the program, this RGA shall be of no further force and effect. In this event, CAL TRANS shall have no liability to pay any funds whatsoever to AGENCY or to furnish any other considerations under this RGA and AGENCY shall not be obligated to perform any provisions of this RGA. b. If funding for any fiscal year is reduced or deleted by the US Congress or the State Legislature for purposes of this program, CAL TRANS shall have the option to either terminate this RGA with no liability occurring to CAL TRANS, or offer an RGA Amendment to AGENCY to reflect the reduced amount. 14. Payment and Invoicing a. The method of payment for this RGA will be based on the actual allowable costs that are incurred in accordance with the provisions of this RGA and in the performance of the Project Work. CAL TRANS will reimburse AGENCY for expended actual allowable direct costs, and including, but not limited to, labor costs, travel, and contracted consultant services costs incurred by AGENCY in performance of the Project work. Indirect costs are reimbursable only if the AGENCY has identified the estimated indirect cost rate in Attachment II and an approved Indirect Cost Allocation Plan or an Indirect Cost Rate Proposal as set forth in Section Ill-Cost Principles, Item 16d. The total cost shall not exceed the cost reimbursement limitation set forth in Section Ill-Cost Limitations, Item 11a. Actual costs shall not exceed the estimated wage rates, labor costs, travel, and other estimated costs and fees set forth in Attachment II without an amendment to this RGA, as agreed between CAL TRANS and AGENCY. b. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in accordance with the provisions of this RGA and in the performance of the Project Work. AGENCY must not only have incurred the expenditures on or after the start date and the issuance of the Notice to Proceed letter for this RGA and before the Expiration Date, but must have also paid for those costs to claim any reimbursement. Item 9 Packet Page 169 City of San Luis Obispo Agreement Number 74A1165 Page 5of16 c. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Human Resources for similar employees (i.e. non-represented employees) unless written verification is supplied that government hotel rates were not then commercially available to AGENCY, its subrecipients, contractors, and/or subcontractors, at the time and location required as specified in the California Department of Transportation's Travel Guide Exception Process at the following link: https://travelpocketquide.dot.ca.qov/. Also see website for summary of travel reimbursement rules. d. AGENCY shall submit invoices to CAL TRANS at least quarterly but no more frequently than monthly in arrears for completion of milestones in accordance with the Project Timeline in Attachment II to the satisfaction of the CAL TRANS Contract Manager. Invoices shall reference this RGA Number and shall be signed and submitted to the CAL TRANS' Contract Manager at the following address, as stated in Section Ill-Notification of Parties, Item 8.c. e. Invoices shall include the following information: 1) Names of the AGENCY personnel performing work 2) Dates and times of Project Work 3) Locations of Project Work 4) Itemized costs as set forth in Attachment II, including identification of each employee, contractor or subcontractor staff who provided services during the period of the invoice, the number of hours and hourly rates for each employee, contractor, sub-recipient or subcontractor staff member, authorized travel expenses with receipts, receipts for authorized materials or supplies, and contractor, subrecipient and subcontractor invoices. 5) AGENCY shall submit written progress reports with each set of invoices to allow the CAL TRANS Contract Manager to determine if AGENCY is performing to expectations, is on schedule, is within funding cost limitations, to communicate interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed. f. Incomplete or inaccurate invoices shall be returned to the AGENCY unapproved for correction. Failure to submit invoices on a timely basis may be grounds for termination of this RGA for material breach per Section Ill-Termination, Item 12. g. CAL TRANS will reimburse AGENCY for all allowable Project costs at least quarterly, but no more frequently than monthly, in arrears as promptly as CAL TRANS fiscal procedures permit upon receipt of an itemized signed invoice. h. The RGA Expiration Date refers to the last date for AGENCY to incur valid Project costs or credits and is the date the RGA expires. AGENCY has 60 days after that Expiration Date to make final allowable payments to Project contractors or vendors, and submit the Project's Final Product(s) as defined in Attachment II and a final invoice to CAL TRANS for reimbursement for allowable Project costs. Any unexpended Project funds not invoiced by the 60th day will be reverted and will no longer be accessible to reimburse late Project invoices contractor. 15. Local Match Funds a. AGENCY shall contribute not less than a proportional cash amount toward the services described herein on a monthly or quarterly basis. The frequency of the payments shall be agreed upon by the parties in a document signed by both parties. Notwithstanding the foregoing, to the extent that in-kind contributions are permitted and identified under this RGA, Item 9 Packet Page 170 City of San Luis Obispo Agreement Number 74A1165 Page 6 of 16 Section Ill-Project Funding, Item 6, the contributions may be counted as cash when they are actually received by CAL TRANS. Except where expressly allowed in writing herein, reimbursement of credits for local matching funds will be made or allowed only for work performed on and after the date of issuance of the Notice to Proceed and prior to the Expiration Date of this RGA. b. AGENCY agrees to contribute the statutorily required local contribution of matching funds if any is specified within this RGA or in any Attachment hereto, toward the actual cost of the services described in Attachment II. AGENCY shall contribute not less than its required match amount toward the services described herein. Local cash and in-kind match requirements can be found in the applicable Grant Application Guide, available upon request. 16. Cost Principles a. AGENCY agrees to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. b. AGENCY agrees, and will assure that its contractors, sub-recipients, and subcontractors will be obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual Project cost items and (b) and (b) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Every sub-recipient receiving Project funds as a sub-recipient, contractor, or subcontractor under this RGA shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards to the extent applicable. c. Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Part 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CAL TRANS. Should AGENCY fail to reimburse moneys due CAL TRANS within 30 days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CAL TRANS is authorized to intercept and withhold future payments due AGENCY from CAL TRANS or any third-party source, including, but not limited to, the State Treasurer, the State Controller or any other fund source. d. Prior to AGENCY seeking reimbursement of indirect costs, AGENCY must have identified the estimated indirect cost rate in Attachment II, prepare and submit annually to CAL.TRANS for review and approval an indirect cost rate proposal and a central service cost allocation plan (if any) in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 5 of the Local Assistance Procedures Manual which may be accessed at: https://dot.ca.gov/-/media/dot- media/programs/local-assistance/documents/lapm/ch05.pdf. e. AGENCY agrees and shall require that all of its agreements with consultants and subrecipients contain provisions requiring adherence to this section in its entirety except for section c, above. Item 9 Packet Page 171 17. Americans with Disabilities Act City of San Luis Obispo Agreement Number 74A1165 Page 7of16 By signing this RGA, AGENCY assures CAL TRANS that in the course of performing Project work, it will fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 USC 12101 et seq.). 18. Indemnification Neither CAL TRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, its contractors, its subrecipients, or its subcontractors under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this RGA. It is understood and agreed that AGENCY shall fully defend, indemnify, and save harmless CAL TRANS and all of CAL TRANS' officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, including, but not limited to, tortuous, contractual, inverse condemnation, or other theories or assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, contractors, subrecipients, or subcontractors under this RGA. 19. Nondiscrimination Clause (2 CCR 11105 Clause b) a. During the performance of this RGA, the AGENCY, its contractors, its subrecipients, and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. AGENCY shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. b. AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code,§ 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, §§ 11135-11139.5), and the regulations or standards adopted by CAL TRANS to implement such article. c. AGENCY shall permit access by representatives of the Department of Fair Employment and Housing and CAL TRANS upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours' notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or CAL TRANS shall require to ascertain compliance with this clause. d. AGENCY and its contractors, its sub-recipients, and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. e. AGENCY shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the Item 9 Packet Page 172 City of San Luis Obispo Agreement Number 74A1165 Page 8of16 nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the RGA. 20. Retention of Records/Audits a. AGENCY, its contractors, subcontractors and sub-recipients, agree to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. b. AGENCY, its contractors, subcontractors and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of AGENCY, its contractors, subcontractors and sub-recipients connected with Project performance under this RGA shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CAL TRANS, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors and sub-recipients upon receipt of any request made by CAL TRANS or its agents. In conducting an audit of the costs and match credits claimed under this RGA, CAL TRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY's external and internal auditors may be relied upon and used by CAL TRANS when planning and conducting additional audits. c. For the purpose of determining compliance with applicable State and AGENCY law in connection with the performance of AGENCY's contracts with third parties pursuant to GC Section 8546.7, AGENCY, AGENCY's sub-recipients, contractors, subcontractors, and CAL TRANS shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. AIL of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to AGENCY under this RGA. CAL TRANS, the California State Auditor, or any duly authorized representative of CAL TRANS or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a Project for audits, examinations, excerpts, and transactions, and AGENCY shall furnish copies thereof if requested. d. AGENCY, its subrecipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by CAL TRANS, for the purpose of any investigation to ascertain compliance with this RGA. e. Additionally, all grants may be subject to a pre-award audit prior to execution of the RGA to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable and allocable costs. f. Any contract with a contractor, subcontractor, or sub-recipient entered into as a result of this RGA shall contain all the provisions of this article. Item 9 Packet Page 173 21. Disputes City of San Luis Obispo Agreement Number 74A 1165 Page 9 of 16 a. Any dispute concerning a question of fact arising under this RGA that is not disposed of by agreement shall be decided by the CAL TRANS Contract Officer, who may consider any written or verbal evidence submitted by AGENCY. The decision of the CAL TRANS Contract Officer shall be the CAL TRAN S's final decision regarding the dispute. b. Neither the pendency of a dispute nor its consideration by the CAL TRANS Contract Officer will excuse AGENCY from full and timely performance in accordance with the terms of the RGA. 22. Third:Party Contracts a. AGENCY shall perform the work contemplated with resources available within its own organization and no portion of the work shall be contracted to a third party without prior written authorization by the CAL TRANS Contract Manager unless expressly included (subrecipient identified) in Attachment II as part of the identified Project work. b. All State-government-funded procurements must be conducted using a fair and competitive procurement process. AGENCY may use its own procurement procedures as long as the procedures comply with the local AGENCY's laws, rules, and ordinances governing procurement and all applicable provisions of State law, including, without limitation, the requirement that the AGENCY endeavor to obtain at least three (3) competitive bids for solicitation of goods, services, and consulting services (see Part 2, Chapter 2, Articles 3 and 4 of the Public Contract Code); a qualifications-based solicitation process, for which statements of qualifications are obtained from at least three (3) qualified firms for architecture and engineering services (see Title 1, Division 5, Chapter 10 of the Government Code); and, the provisions of the State Contracting Manual (SCM), Chapter 5, which are not inconsistent with this Item 23, Third Party Contracts. The SCM can be found and the following link:https://www.dgs.ca.gov/OLS/Resources/Paqe- Content/Office-of-Legal-Services-Resources-List-Folder/State-Contractinq. c. Any contract entered into as a result of this RGA shall contain all the provisions stipulated in this RGA to be applicable to AGENCY's sub-recipients, contractors, and subcontractors. Copies of all agreements with sub-recipients, contractors, and subcontractors must be submitted to the CAL TRANS Contract Manager. d. CAL TRANS does not have a contractual relationship with the AGENCY's subrecipients, contractors, or subcontractors, and the AGENCY shall be fully responsible for all work performed by its subrecipients, contractors, or subcontractors. e. Prior authorization in writing by the CAL TRANS Contract Manager shall be required before AGENCY enters into any non-budgeted purchase order or sub-agreement for supplies or consultant services. AGENCY shall provide an evaluation of the necessity or desirability of incurring such costs. AGENCY shall retain all receipts for such purchases or services and shall submit them with invoices per Section Ill-Payment and Invoicing, Item 14e(4), above. f. Any contract entered into by AGENCY as a result of this RGA shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subrecipients, contractors, and subcontractors will be allowable as Project costs only after those costs are incurred and paid for by the subrecipients, contractors, and subcontractors. Travel expenses Item 9 Packet Page 174 City of San Luis Obispo Agreement Number 74A 1165 Page 10of16 and per diem rates for subcontractors shall be reimbursed pursuant to Section Ill-Payment and Invoicing, Item 14c, above. 23. Drug-Free Workplace Certification By signing this RGA, AGENCY certifies under penalty of perjury under the laws of California that AGENCY will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code Sections 8350 et seq.) and will provide a Drug-Free workplace by doing all of the following: a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program as required by GC Section 8355(a)(2) to inform employees about all of the following: 1) The dangers of drug abuse in the workplace. 2) The person's or organization's policy of maintaining a Drug-Free workplace; 3) Any available counseling, rehabilitation, and employee assistance programs. 4) Penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(a)(3), that every employee who works on the proposed contract or grant: 1) Will. receive a copy of the company's Drug-Free policy statement. 2) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant. d. Failure to comply with these requirements may result in suspension of payments under this RGA or termination of this RGA or both, and AGENCY may be ineligible for the award of any future state contracts if CAL TRANS determines that any of the following has occurred: (1) AGENCY has made a false certification or, (2) AGENCY violates the certification by failing to carry out the requirements as noted above. 24. Relationship of Parties It is expressly understood that this RGA is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. 25. State-Owned Data a. AGENCY agrees to comply with the following requirements to ensure the preservation, security, and integrity of State-owned data on portable computing devices and portable electronic storage media: 1) Encrypt all State-owned data stored on portable computing devices and portable electronic storage media using government-certified Advanced Encryption Standard (AES) cipher algorithm with a 256-bit or 128-bit encryption key to protect CAL TRANS data stored on every sector of a hard drive, including temp files, cached data, hibernation files, and even unused disk space. Item 9 Packet Page 175 City of San Luis Obispo Agreement Number 74A1165 Page 11 of 16 2) Data encryption shall use cryptographic technology that has been tested and approved against exacting standards, such as Fl PS 140-2 Security Requirements for Cryptographic Modules. 3) Encrypt, as described above, all State-owned data transmitted from one computing device or storage medium to another. 4) Maintain confidentiality of all State-owned data by limiting data sharing 'to those individuals contracted to provide services on behalf of the State, and limit use of State information assets for State purposes only. 5) Install and maintain current anti-virus software, security patches, and upgrades on all computing devices used during the course of the RGA. 6) Notify the CAL TRANS Contract Manager immediately of any actual or attempted violations of security of State-owned data, including lost or stolen computing devices, files, or portable electronic storage media containing State-owned data. 7) Advise the owner of the State-owned data, the AGENCY Information Security Officer, and the AGENCY Chief Information Officer of vulnerabilities that may present a threat to the security of State-owned data and of specific means of protecting that State- owned data. b. AGENCY agrees to use the State-owned data only for State purposes under this RGA. c. AGENCY agrees to not transfer State-owned data to any computing system, mobile device, or desktop computer without first establishing the specifications for information integrity and security as established for the original data file(s) (State Administrative Manual (SAM) Section 5335.1). 26. Assumption of Risk and Indemnification Regarding Exposure to Environmental Health Hazards In addition to and not a limitation of the AGENCY's indemnification obligations contained elsewhere in this RGA, the AGENCY hereby assumes all risks of the consequences of exposure of AGENCY's employees, agents, subrecipients, contractors and subcontractors, contractors and subcontractors' employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this RGA, to any and all environmental health hazards, local and otherwise, in connection with the performance of this RGA. Such hazards include, but are not limited to, bodily injury and/or death resulting in whole or in part from exposure to infectious agents and/or pathogens of any type, kind or origin. AGENCY also agrees to take all appropriate safety precautions to prevent any such exposure to AGENCY's employees, agents, subrecipients, contractors and subcontractors, contractors and subcontractors' employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this RGA. AGENCY also agrees to indemnify and hold harmless CAL TRANS, the State of California, and each and all of their officers, agents, subrecipients, and employees, from any and all claims and/or losses accruing or resulting from such exposure. Except as provided by law, AGENCY also agrees that the provisions of this paragraph shall apply regardless of the existence or degree of negligence or fault on the part of CAL TRANS, the State of California, and/or any of their officers, agents, and/or employees. 27. Mandatory Organic Waste Recycling It is understood and agreed that pursuant to Public Resources Code Sections 42649.8 et seq., if Contractor generates four (4) cubic yards or more of organic waste or commercial solid waste per Item 9 Packet Page 176 City of San Luis Obispo Agreement Number 74A 1165 Page 12 of 16 week, the Contractor shall arrange for organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling. Contractor shall provide proof of compliance, i.e. organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling, upon request from the CAL TRANS Contract Manager. 28. Project Close Out/Final Product a. AGENCY will provide two (2) electronic versions of the Final Product(s) to the CAL TRANS Contract Manager. b. CAL TRANS reserves the right to withhold final payment to AGENCY pending receipt of Final Product(s) to the CAL TRANS Contract Manager. c. AGENCY will provide two (2) Integrated Climate Adaptation and Resiliency Program (ICARP) case studies to the Governor's Office of Planning and Research (OPR). The first case study is due to OPR at project initiation and should identify the need for adaptation funding and intended outcome (s) of the project. The second case study is due at time of project end date and should highlight outcomes. Lessons learned and upcoming adaptation opportunity of the project. 29. Ownership of Proprietary Property a. Definitions 1) Work: The work to be directly or indirectly produced by AGENCY under this RGA. 2) Work Product: All deliverables created or produced from Work under this RGA including but not limited to, all Work and Deliverables conceived or made, or made hereafter conceived or made, either solely or jointly with others during the term of this RGA and during a period of six (6) months after the termination thereof, which relates to the Work commissioned or performed under this RGA. "Work Product" includes all deliverables, inventions, innovations, improvements, or other works of authorship AGENCY, its sub- recipients, a third-party contractor or subcontractor may conceive of or develop in the course of this RGA, whether or not they are eligible for patent, copyright, trademark, trade secret, or other legal protection. 3) Inventions: Any idea, methodologies, design, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by AGENCY or jointly with the AGENCY'S contractor, subcontractor and/or subrecipient and/or the AG ENCY's contractor, subcontractor and/or subrecipient's employees with one or more employees of CAL TRANS, during the term of this RGA and in performance of any Work under this RGA, provided that either the conception or reduction to practice thereof occurs during the term of this RGA and in performance of Work issued under this RGA. b. Ownership of Work Product And Rights 1) Copyright Ownership of Work Product: Except in regard to Pre-existing Works, all Work Product derived by the Work performed by the AGENCY, its employees, or by any of the AGENCY's contractor's, subcontractor's, and/or subrecipient's employees under this RGA, shall be owned by CAL TRANS and AGENCY and shall be considered to be works made for hire by the AGENCY and AGENCY's contractor, subcontractor, and/or subrecipient for CAL TRANS and AGENCY. CAL TRANS and AGENCY shall own all United States and international copyrights in the Work Product. As such, all Work Product shall contain, in a conspicuous place, a copyright designation consisting of a "c" in a circle followed by the four-digit year in which the Work Product Item 9 Packet Page 177 City of San Luis Obispo Agreement Number 74A1165 Page 13of16 was produced, followed by the words "California Department of Transportation and AGENCY. All Rights Reserved." For example, a Work Product created in the year 2012 would contain the copyright designation© 2012 California Department of Transportation, and AGENCY. All Rights Reserved. 2) Vesting of Copyright Ownership: AGENCY, its employees, and all of AGENCY's contractor's, subcontractor's, and subrecipient's employees, agrees to perpetually assign, and upon creation of each Work Product automatically assigns, to CAL TRANS and AGENCY, its successors, and assigns, ownership of all United States and international copyrights in each and every Work Product, insofar as any such Work Product, by operation of law, may not be considered work made for hire by the AGENCY's contractor, subcontractor, and/or subrecipient from CAL TRANS. From time to time, CAL TRANS and the AGENCY shall require its contractors, subcontractors, and/or subrecipients and their respective employees to confirm such assignments by execution and delivery of such assignments, confirmations, or assignment, or other written instruments as CAL TRANS and the AGENCY may request. CAL TRANS and the AGENCY, its successors, and assigns, shall have the right to obtain and hold in its or their own name(s) all copyright registrations and other evidence of rights that may be available for Work Product. AGENCY shall require contractors, including subcontractors, to waive all moral rights relating to identification of authorship restriction or limitation on use, or subsequent modifications of the Work. c. Inventions 1) Vesting of Patent Ownership: AGENCY agrees to require subrecipients, contractors, subcontractors and their respective employees to assign to CAL TRANS and AGENCY, its successors, and assigns, all Inventions, together with the right to seek protection by obtaining patent ownership rights and the right to claim all rights or priority there under, and the same shall become and remain CAL TRANS' property regardless of whether such protection is sought. The AGENCY, its employees, and AGENCY'S contractor, subcontractor, and subrecipient shall promptly make a complete written disclosure to CAL TRANS of each Invention not otherwise clearly disclosed to CAL TRANS in the pertinent Work Product, specifically pointing out features or concepts that the AGENCY, its employees, and/or AGENCY's contractor, subcontractor, and/or subrecipient believes to be new or different. The AGENCY, its employees, and AGENCY's contractor, subcontractor, and subrecipient shall, upon CAL TRANS and AGENCY's request and at CAL TRANS and AGENCY's expense, cause patent applications to be filed thereon, through solicitors designated by CAL TRANS and AGENCY, and shall sign all such applications over to CAL TRANS and AGENCY, its successors, and assigns. The AGENCY, its employees, and AGENCY's contractor, subcontractor, and subrecipient shall give CAL TRANS and AGENCY and its solicitors all reasonable assistance in connection with the preparation and prosecution of any such patent applications and shall cause to be executed all such assignments or other instruments or documents as CAL TRANS and AGENCY may consider necessary or appropriate to carry out the intent on this RGA. 2) Agency: In the event that CAL TRANS and AGENCY are unable for any reason whatsoever to secure the AGENCY's, its employees', and/or AGENCY's contractor's, subcontractor's, and/or sub-recipient's signature to any lawful or necessary document required or desirable to apply for or prosecute any United States application (including renewals or divisions thereof), AGENCY, its employees, and AGENCY's contractor, subcontractor, and subrecipient hereby irrevocably designates and appoints CAL TRANS Item 9 Packet Page 178 City of San Luis Obispo Agreement Number 74A1165 Page 14 of 16 and AGENCY and its duly authorized officers and agents, as its agent and attorney-in- fact, to act for and on AGENCY, its employees, and AGENCY's contractor's, subcontractor's, and subrecipient behalf and stead, to execute and file such applications and to do all other lawfully permitted acts to further the prosecution and issuance of any copyrights, trademarks, or patents thereon with the same legal force and effect as if executed by AGENCY, its employees, and AGENCY's contractor, subcontractor, and subrecipient. CAL TRANS and AGENCY shall have no obligations to file any copyright, trademark, or patent applications. d. Additional Provisions 1) Avoidance of infringement: In performing services under this RGA, AGENCY and its employees agree to avoid designing or developing any items that infringe one or more patents or other intellectual property rights of any third party. If AGENCY or its employees becomes aware of any such possible infringement in the course of performing any Work under this RGA, AGENCY or its employees shall immediately notify CAL TRANS in writing. 2) Pre-existing Works and License: AGENCY agrees to require contractors, subcontractors, and subrecipients to acknowledge that all Work Product shall be the sole and exclusive property of CAL TRANS and AGENCY, except that any Pre-existing Works created by AGENCY and third parties outside of the RGA but utilized in connection with the RGA (the "Pre-existing Works") shall continue to be owned by AGENCY or such parties. AGENCY agrees to notify CAL TRANS in writing of any Pre- existing Works used in connection with any Work Product produced under this RGA and hereby grants to CAL TRANS a non-exclusive, irrevocable, worldwide, perpetual, royalty-free license to utilize the Pre-existing Works in connection with the Work Product. 3) Contractors, Subcontractors, and Subrecipients: Through contract with its subrecipients, contractors, and subcontractors, AGENCY shall affirmatively bind by contract all of its contractors, subcontractors, subrecipients, and service vendors (hereinafter "AGENCY's Contractor/Subcontractor/Sub-recipient") providing services under this RGA to conform to the provisions of this Exhibit. In performing services under this RGA, AGENCY's Contractor/Subcontractor/Subrecipient shall agree to avoid designing or developing any items that infringe one or more patents or other intellectual property rights of any third party. If AGENCY's Contractor/Subcontractor/Subrecipient becomes aware of any such possible infringement in the course of performing any Work under this RGA, AGENCY's Contractor/Subcontractor/Subrecipient shall immediately notify the AGENCY in writing, and AGENCY shall then immediately notify the CAL TRANS in writing. e. OWNERSHIP OF DATA 1) Upon completion of all Work under this RGA; all intellectual property rights, ownership, and title to all reports, documents, plans, specifications, and estimates, produced as part of this RGA will automatically be vested in CAL TRANS and AGENCY and no further agreement will be necessary to transfer ownership to CAL TRANS and AGENCY. The AGENCY, its contractors, subcontractors, and subrecipients, shall furnish CAL TRANS all necessary copies of data needed to complete the review and approval process. Item 9 Packet Page 179 City of San Luis Obispo Agreement Number 74A1165 Page15of16 2) It is understood and agreed that all calculations, drawings, and specifications, whether in hard copy of machine-readable form, are intended for one-time use in the Project for which this RGA has been entered into. 3) AGENCY, its contractors, subcontractors, and subrecipients, are not liable for claims, liabilities, or losses arising out of, or connected with, the modification or misuse by CAL TRANS of the machine-readable information and data provided by AGENCY, its contractors, subcontractors, and subrecipients, under this RGA; further, AGENCY, its contractors, subcontractors, and subrecip"1ents, are not liable for claims, liabilities or losses arising out of, or connected with, any use by CAL TRANS of the Project documentation on other projects, for additions to this Project, or for the completion of this project by others, excepting only such use as may be authorized, in writing, by AGENCY, its contractors, subcontractors, and subrecipients. 4) Any sub-agreement in excess of $25,000.00, entered, into as a result of this RGA, shall contain all of the provisions of this clause. Item 9 Packet Page 180 SECTION IV ATTACHMENTS· City of San Luis Obispo Agreement Number 74A1165 Page 16 of 16 The following attachments are incorporated into and are made a part of this RGA by this reference and attachment. I. AGENCY Resolution II. Scope of Work and Project Timeline IN WITNESS WHEREOF , th e parties hereto have executed this RGA on the day and year first herei n above written : STATE OF CALIFORNIA DEPART~NSPORTATION CITY OF SAN LUIS OBISPO P ~e~ Name: S' PrintedName: .. / _..;;...__"'_" _:-s. __ ._-L_ta....__,.+_,__ _____ __,M_ t Ul Ar=-L-<_,.oO(L ()N Title: Contract Officer Title: . Cv""'""'-v "' L 1-; 9e.vc.-\ "f""' (....\. t \2\v-(_,._.~v Date: / / Lo .)-l -i..o l ~ . ) By: Printed Name: Title : Date : By : Printed Name: Title: Date: Item 9 Packet Page 181 and RESOLUTION NO. 11036 (2019 SERIES) City of San Luis Obispo Agreement Number 74A1165 Attachment I Page 1 of 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE CALTRANS ADAPTATION PLANNING GRANT FOR THE PROJECT TITLED "RESILIENT SAN LUIS OBISPO" WHEREAS, climate change presents one of the most significant threats to our community; WHEREAS, the City seeks to maintain and enhance quality of life at a time of worsening climate change impacts; and WHEREAS, in order to adapt and enhance resilience, the City must conduct a comprehensive vulnerability study and develop adaptation policy; and WHEREAS, the Caitrans Adaptation Planning Grant provides resources to assess vulnerability and develop and adopt adaptation and resilience policy; and WHEREAS, !he City of San Luis Obispo City Council unanimously :sitpported a grimt application to Cultnms Adaptation Planning Grant program titled, "Resilient San Luis Obispo" for the purpose of assessing vulnerability and deyeloping and adopting adaptation and resilience policy; and WHEREAS, the City of San Luis Obispo is eligible.to receive Federal and/or State funding for certain transportation planning related plans, through the California Department of Transportation; and WHEREAS, a Restricted Grant Agreement is needed to be executed with the California Department of Transportation before such funds can be claimed through the Transportation Planning Grant Programs; and WHEREAS, the City of San Luis Obispo wishes to delegate autl1orization to execute these agreements and any amendments thereto; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. The City of San Luis Obispo City Council accepts the Ca!trans Adaptation Planning Grant award to complete the project titled "Resilient San Luis Obispo." R 11036 Item 9 Packet Page 182 i City of San Luis Obispo Resolution No. 11036 (2019 Series) Agreement Number 74A 1165 Attachment I Page 2 of 2 SECTION 2. For the purpose of this project, the City Council authorizes the City Manager or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation. Upon motion of Council Member Christianson, seconded by Council Member Gomez, and on the following roll call vote: AYES: NOES: ABSENT: Council Members Christianson, Gomez and Stewart Vice Mayor Pease and Mayor Harmon None None The foregoing resolution was adopted this 201h day of August 2019. ATTEST: \:::!::::.~~=:L~~~~~~~:__-~ Teresa Purrington City Clerk APPROVED AS TO FORM: ~_(_:&£ ii._-~ J. Christine Dietric~ City Attorney IN WITNESS WHEREOF, l have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day of _h.\m@~·---' 2019. ',j~v~~ Teresa Purrington \ . ..• · City Clerk • R l 1036 Item 9 Packet Page 183 INTRODUCTION: City of San Luis Obispo Agreement Number 74A1165 Attachment II Page 1 of 13 SCOPE OF WORK: Resilient San Luis Obispo The City of San Luis Obispo's transportation network is critical for regional and statewide connectivity, including all north/south traffic on Highway 101 and State Route 1. With the City serving as the region's economic hub with connectors to surrounding communities, risks to the transportation system have significant implications for people's livelihood and safety, particularly for the large parts of the city that are considered low-income under AB 1550's designation. Recent studies, particularly the Central Coast Region Report (2018) completed as part of California's Fourth Climate Change Assessment, reveal that the City (and the region as a whole) are at risk or can anticipate increased risks including exposure to wildfire, a 7-8 degree annual average maximum and minimum temperatures by the end of century relative to the historical period, an average of 26-50 extreme heat days between 2070-2099, and changing precipitation patterns. Known hazards are just the tip of the iceberg of exposures to climate-related hazards faced by the City and its transportation system, as risks are expected to grow as the result of climate change and shifting transportation needs and systems. Furthermore, with the risk of wildfire and flooding increasing in severity and frequency over time, the City must ensure that the transportation system is prepared and adapted to serve as reliable evacuation routes -not just for City residents, but for surrounding communities and the region at-large. Resilient San Luis Obispo aims to take a comprehensive approach to transportation and community adaptation for the City of San Luis Obispo and its regional connections. This project takes a data-driven approach, utilizing best-available science with robust community engagement, to integrate activities along the adaptation planning continuum. A comprehensive vulnerability assessment will be conducted that evaluates current and future hazards to the City's transportation system by assessing hazards and vulnerabilities across existing and planned transportation and physical assets (wastewater treatment, critical infrastructure, and public assets). The assessment will also document social and economic conditions in recognition of the interconnectedness of all sectors and aspects of society, with the transportation system serving as the connective tissue for resiliency, sustainability, safety, and livability. The project will also conduct an adaptation policy audit that reviews local policies for alignment and improvement, as well as state laws. The City aims to reach beyond minimal compliance to state laws in order to serve as a leader for the region and the state of California. In conjunction with the vulnerability assessment and policy audit, the project team will conduct robust community engagement activities that seek to gather input on community needs and priorities, educate community members on climate risks and individual/community resiliency strategies, and involve community members in this comprehensive project. With a strong commitment to equity and environmental justice, the project team will prioritize the engagement of vulnerable at at-risk populations including residents and stakeholders from disadvantaged, and hard-to-reach populations including low-income households, communities of color, tribal communities, youth, and elderly populations. Based on the aforementioned activities, the project team will conduct activities that will define specific adaptation measures and prepare the city to take immediate action. Since the General Plan serves as the foundational planning document that all other plans and policies must be consistent with, this project will update the Safety Element of the General Plan to include a robust adaptation and resilience component. The project will establish specific adaptation goals, Item 9 Packet Page 184 City of San Luis Obispo Agreement Number 74A1165 Attachment 11 Page 2 of 13 objectives, ·and targets; discuss potential adaptation strategies based on impact and feasibility; consider interdependencies between the City and neighboring jurisdictions to identify actions to pursue at the regional scale, and; assess funding and financing options to pursue the prioritized adaptation strategies. Furthermore, this project will develop an integration guide, working closely with City staff, to integrate adaptation strategies into the Capital Improvement Plan, operational budget, and biennial financial plans. Model policies and work plans will be developed to support the implementation of the top three prioritized adaptation actions. The project team will also conduct a variety of capacity building activities to equip the City, regional agencies, community organizations, and other key stakeholder groups with the technical skills and coordination strategies to successfully implement adaptation measures and build overall community resilience. RESPONSIBLE PARTIES: The City of San Luis Obispo is the proposal applicant and will be the grant recipient The City will partner with the Local Government Commission (LGC), a 501 (c)3 non-profit organization. LGC is included as a sub-applicant on this grant proposal to assist with managing the project and with various project tasks. The project will also be supported with committed staff resources from the San Luis Obispo Council of Governments. The City will select a consultant or team of consultants through a competitive bid process to lead the technical tasks included in this proposal. The selected consultant(s) will have the experience and expertise required to successfully complete the tasks assigned. Responsibilities of each agency/organization are summarized below: • City of San Luis Obispo: The City is the lead applicant for the project and will have overall responsibility for the project The City will be the grant recipient, execute the Restricted Grant Agreement with Caltrans, and execute contracts with sub-applicant Local Government Commission. The City will conduct a competitive bid process to select a qualified consultant team with expertise in vulnerability assessments and adaptation plans. The City will provide in-kind staff support time (652 hours, valued at $65,200) to surpass the 11A7 percent local cash match. Staff will coordinate with project partners and other key stakeholders, provide data and policy documents, participate in community and local agency workshops, review all work products, direct revisions, and manage the overall project City staff will prepare quarterly invoices and reports to Caltrans with support from LGC. Staff will also coordinate with partners to help publicize the project and ensure public participation in all aspects of the community planning process. • Local Government Commission (LGC) LGC will assist with project management and overall coordination of the project LGC will lead the audit of adaptation policies under Task 3, support the development of a Public Safety/Adaptation Plan and Implementation Guide under Task 4, lead a capacity and coordination assessment under Task 6, and provide subject-matter expertise throughout the duration of the project LGC staff has extensive experience in public engagement in planning processes, land use and transportation and design, climate change adaptation, and in facilitating planning projects. LGC will also place a CivicSpark Fellow locally with the City of San Luis Obispo to support all aspects of the project The Fellow will be able to provide direct support, as well as connections to other similar projects being conducted throughout the state to share resources and best practices. LGC has worked on more than 70 community design charrettes and also coordinates the statewide Alliance of Regional Collaboratives for Climate Adaptation, the Sacramento region's Capital Region Climate Readiness Item 9 Packet Page 185 City of San Luis Obispo Agreement Number74A1165 Attachment II Page 3of13 Collaborative, and the Bay Area Climate Adaptation Network. Additionally, LGC co- authored an "Integrated Climate Change Adaptation Planning in San Luis Obispo County" report in 2010 and supported the emergence of the Central Coast Climate Collaborative in 2016. For the last 4 years, LGC has successfully implemented the CivicSpark program statewide. • San Luis Obispo Council of Governments (SLOCOG): SLOCOG will provide in-kind staff support time (40 hours, valued at $4,000) hours of senior staff time to support a variety of tasks, including data and deliverable review, review for consistency with the Regional Transportation Plan, and communication and transfer of project outcomes to the broader region. • Consultant(s): The selected consultant (or team of consultants) will lead all aspects of the Adaptation/Safety Element Background Analysis under Task 2, which includes assessing current and future hazards and conducting a comprehensive vulnerability assessment. The consultant will work with project partners to organize community input meetings and educational seminars under Task 4. The consultant will also lead all aspects of the Public Safety/Adaptation Plan, which includes developing a menu of adaptation strategies under Task 5, developing the Safety ElemenVAdaptation Plan, and a series of work plans for the top three prioritized implementation activities. Finally, the consultant will play a supporting role in all other aspects of the project to ensure continuity and alignment in final work products, working closely with the City, LGC, and other key stakeholders. OVERALL PROJECT OBJECTIVES: The proposed project and resulting products will address a variety of community sustainability and resilience objectives, including: • Conduct planning activities to help define specific adaptation measures and better prepare the city to take immediate actions. The conceptual project will move the city forward in its later effort to update the city's General Plan Safety Element. • Identify and assess vulnerabilities across San Luis Obispo's existing and planned transportation system, physical assets, and social and economic conditions to identify current and projected areas of risk and vulnerability. • Engage residents and stakeholders, particularly from low-income, disadvantaged, and hard-to-reach populations, to gather input on key vulnerabilities to address and priority adaptation measures to pursue. • Inform residents and stakeholders of current and future climate vulnerabilities, as well as adaptation best practices that can be pursued at the community or individual level. • Identify the City committees and bodies responsible for transportation, public health and safety, and community resilience, as well as community organizations working on climate change issues, and assess their capacity and understanding of adaptation and resilience. • Identify and prioritize adaptation strategies across transportation, public health and safety, and community resilience sectors that can respond to existing and projected risks. ' Item 9 Packet Page 186 City of San Luis Obispo Agreement Number 74A1165 Attachment 11 Page 4of13 Evaluate each adaptation measure based on impact and feasibility. • Develop an Integration Guide and Work Plan that identifies resources and staffing requirements and assignments for implementation of the Adaptation Plan, and aims to apply model policies and ordinances. Integrate adaptation considerations into the City's budgeting process. 1. Project Initiation and Coordination Initial project planning and ongoing coordination efforts are critical to the success of any project. For project initiation tasks, the City will lead efforts to establish a mutual understanding of project requirements, goals, and tasks with Caltrans and LGC, which will then inform that Request for Proposals and the selected consultant's role. Throughout the duration of the project, the Project Team will undertake a number of ongoing project planning and coordination activities to ensure that all project goals and requirements are met, within the identified budget and project timeline. Task 1.1: Kickoff Meeting with Caltrans • Hold kickoff meeting with Caltrans District staff to discuss overall project goals, objectives, invoicing, progress reports, and grant procedures, as well as to establish overall project expectations and requirements. • Responsible Party: City Task 1.2: Subcontract with Sub-Applicant • Prepare a subcontract with the Local Government Commission (LGC), the sub- applicant on this grant that will assist with project management and lead several project tasks. • Responsible Party: City Task 1.3: Project Charter and Kickoff • Designate City staff member for project oversight and operations. • Refine project scope, finalize project timeline and milestones, and develop project charter based on submitted application, kickoff meeting with Caltrans, and any new developments in climate science or local activities. • Responsible Party: City Task 1.4: Request for Proposals and Contracting with Consultantlsl • Conduct a full Request for Proposals process that follows the proper procurement procedures established by Caltrans. RFP will be distributed and consultant(s) interviews will be conducted. A consultant (or team of consultants) will be selected and contracts will be negotiated and fully executed. • Responsible Party: City Task 1.5: Project Coordination • Conduct regular project team conference calls and/or in-person meetings with City staff and LGC to ensure constant communication on upcoming tasks to ensure the project remains on time and within budget. Consultant(s) will be included in meetings after they are selected. Other project partners including Caltrans, regional agencies and districts, and other key stakeholders will be invited to participate in team meetings as needed. • Responsible Party: City Item 9 Packet Page 187 Task. 1. 1 1.2 1.3 1.4 1.5 Deliverable Copy of procurement procedures and executed consultant contract s Meeting summaries 2. Existing and Projected Conditions City of San Luis Obispo Agreement Number74A1165 Attachment 11 Page 5 of 13 The Project Team will begin by conducting a comprehensive vulnerability assessment to ensure robust understanding of current and future hazards and vulnerabilities specific to the City, as well as to ensure all work products are based on best-available science and local data. This is a critical first step in order to develop the foundational knowledge and analysis that will inform the future planning tasks that follow. More specifically, the Team will review existing hazard assessments and conduct additional research to compile data and maps on the City's exposure to both current and future hazards. Following the hazards assessment, the Team will conduct a comprehensive vulnerability assessment that evaluates the vulnerability of transportation systems, physical assets, and social and economic conditions. Activities conducted under this task will be continuously informed by community input gathered under Task 4, which will be conducted in parallel with this task. The culminating product will be the Comprehensive Vulnerability Assessment accompanied by risk profiles, GIS datasets and maps, summary memos, and a presentation kit. Task 2.1: Current and Future Hazards Assessment • Review existing hazard assessments including the City's 2014 Local Hazard Mitigation Plan, the in-process countywide hazard mitigation plan and publicly available hazard maps to build foundational understanding of existing hazards. • Coordinate with related City planning efforts, such as the Community Planning Assistance for Wildfire that will produce downscaled wild land urban interface wildfire maps, in order to maximize the outcomes of this project and to seek alignment across City planning. • Conduct additional research to compile data, models, and maps identifying exposure to natural (e.g., wildfire, seismic activity, drought, flood, extreme heat) and man-made (e.g. diablo canyon, urban conflagration) hazards. • Review existing resources (e.g. Cal-Adapt, California Fourth Assessment climate change reports, etc.) and conduct primary climate research where necessary to project future climate change influenced hazards. Activities will include hydrologic modeling of flood prone creeks (San Luis Obispo Creek and Prefumo Creek) and certain urban areas under expected future precipitation regimes; downscaled heat modeling; regional wind modelling; and site-specific wildfire risk modeling. • Responsible Party: Consultant Item 9 Packet Page 188 Task 2.2: Comprehensive Vulnerability Assessment City of San Luis Obispo Agreement Number 74A1165 Attachment 11 Page 6of13 • Compile known and planned transportation assets into a single GIS dataset (including active transportation, roadways, transit, and Caltrans facilities). Overlay hazard maps on identified assets to evaluate areas of vulnerability. • Evaluate existing transportation routes, including evacuation routes and primary commuter routes, and assess risks and vulnerabilities due to climate change and other critical hazards identified. • Identify communities and individuals with inadequate access to transportation, particularly public transit and alternative modes of transportation. • Based on community priorities, identify 3-5 priority transportation assets to develop a full risk profile for, including the cost of inaction. • Evaluate a range of community characteristics, including poverty and unemployment rates, aging populations, and other key characteristics that may suggest greater sensitivity to change, including climate variability, to assess community's adaptive capacity. • Identify both current and likely future demographic and economic conditions and systematically assess social and economic vulnerability to known hazards with an emphasis on how the City's transportation system's functionality is vulnerable to the expected confluence of climate, economic, and social changes. • Assess how existing transportation system inadequacies also exacerbate social and economic vulnerabilities. • Evaluate how the City's climate risks and vulnerabilities impact the region's broader economic resilience and vitality. • Compile known and planned physical assets (e.g. wastewater treatment, critical facilities, and public assets) into a single GIS dataset. Overlay hazard maps with assets to identify areas of vulnerability. • Evaluate interconnectedness of critical infrastructure and transportation system, and develop a prioritization hierarchy for addressing risks and vulnerabilities identified. • Based on community priorities, identify 3-5 priority physical assets to develop a full risk profile for, including the cost of inaction. • Responsible Party: Consultant Task 2.3: Hazards and Vulnerabilities Report • Based on Hazards Assessment (Task 2.1) and Vulnerability Assessment (Task 2.2), develop a comprehensive Hazards and Vulnerabilities Report, including a standalone summary report of key find'1ngs. • Compile GIS datasets to produce a comprehensive map that highlights asset-and risk- specific data and models. • Develop a presentation kit that can be utilized to educate and inform local elected officials, City staff, regional agencies, and the community at-large. At minimum, the kit will include digestible summary memos, a PowerPoint presentation, and a poster. • Responsible Party: Consultant Task 2.1 2.2 Deliverable Summary memos, map(s), and model(s) for each hazard area Risk Profiles for transportation, physical assets, and social and economic conditions; GIS datasets Item 9 Packet Page 189 2.3 3. Adaptation Policy Audit City of San Luis Obispo Agreement Number 74A1165 Attachment 11 Page 7 of 13 Nazards and Vulnerabilities Report; summary report; maps; summary memos; PowerPoint presentation; poster In order to effectively respond to climate risks, the City needs a clear picture of what local policy levers for action exist and how this might relate to or respond to state policies. As local hazards and vulnerabilities are being assessed, the Project Team will begin to conduct a thorough review of adaptation policies at the local level in order to determine current gaps and provide policy recommendations for increasing resilience across the City. Part of this assessment aims to establish a clear vision for community resilience and identify common strategies across multiple plans that can be implemented to catalyze action, gain political and public support, and achieve multiple City objectives. This local review will be complemented by a state law compliance timeline that identifies a recommended path forward for the City to address key state policy and planning requirements and actions in order to meet state adaptation and transportation goals. Task 3.1: Local Policy Audit • Review existing City plans, programs, and policies (e.g. general plan, climate action plan, local ordinances, permitting, and zoning), as they relate to adaptation and/or transportation planning, to assess the City's current approach to community resilience and ma'1ntaining an economically viable and socially just community in the face of systems disturbance. • Develop a policy crosswalk to identify areas of misalignment and/or potential for improvement to increase adaptive capacity and build community resilience, including strategies discussed across multiple plans that should be prioritized by the City. • Based on the policy audit and crosswalk, establish a .clear vision for community resilience that City departments can adopt as a guiding compass. Promote this vision broadly to gain support from local elected officials, neighboring jurisdictions, and the broader community. • Responsible Party: LGC Task 3.2: State Law Compliance Timeline • Identify local policy and planning requirements, as they relate to adaptation and transportation, in order to comply with and go beyond existing state laws and mandates to serve as a model for the region and state. • Define local goals and objectives as they relate to State legal requirements and broader State targets to identify priority strategies to achieve shared goals. • Establish a timeline for alignment and compliance while conducting a crosswalk of other City goals, plans, and existing policies and programs. • Responsible Party: LGC I ask 3.1 3.2 Deliverable Summary of plans and policies reviewed; policy crosswalk; communit resilience vision Summary of state laws; time/ine for alignment and com liance Item 9 Packet Page 190 4. Community Outreach and Education City of San Luis Obispo Agreement Number74A1165 Attachment II Page 8of13 As with any community planning or development process, the community engagement efforts for this project will help to affirm community values, needs, and aspirations while ultimately driving the development of the Public Safety/Adaptation Plan (Task 5) so that it reflects and advances the community's vision for the future. To support this goal, LGC will work closely with the City and other key community partners to conduct numerous community engagement activities. By using a participatory process, the Project Team can help broaden the dialogue with residents and businesses within the community and stimulate continued engagement and strengthen social capital within the City of San Luis Obispo during and after the project period. In recognition of the critical roles that residents and businesses play in building community resilience, the Project Team will conduct activities that aim to gather input on key priorities, needs, concerns, obstacles, and opportunities while educating community members on the findings from the Hazards and Vulnerabilities Assessment (Task 2) and rallying community members behind a shared vision. Input from the community will directly feed into the development of the Public Safety/Adaptation Plan, as well as recommendations to the City on potential policy actions to take. Task 4.1: Community Outreach Plan • Develop a Community Outreach Plan that details steps that will be taken to reach out to and engage community members. The Plan will include: o A list of key stakeholders to involve and engage, including public officials and agency staff, businesses, service organizations, community organizations, neighborhood leaders and residents, the school district and nearby schools, property owners, and other interest groups that reflect the demographics and perspectives of the San Luis Obispo community. o An evaluation of various community engagement strategies, including surveys, pop-ups, traditional workshops, community design charrettes, webinars, and festive activities that can be utilized. o A schedule of community engagement activities with timing for release, distribution, and placement of publicity items. The Project Team aims to conduct a series of activities throughout the duration of the project (e.g. input, feedback, and dissemination). o A list of potential co-sponsors and co-promoters to assist with outreach and procurement of additional materials (e.g. food, prizes, and entertainment) to maximize participation and positive input at community events. • Responsible Party: LGC Task 4.2: Community Engagement Activities • Conduct at least 4 community engagement activities to solicit input on community needs, concerns, and priorities in regard to transportation infrastructure and services, climate hazards and vulnerabilities, and other sectors and factors critical to achieving community resilience, mobility, and social justice goals. • Produce and distribute outreach materials in English, Spanish, and other languages as needed to encourage broad public participation. Secure translation services, as needed, for community engagement activities. • Identify additional stakeholder groups to conduct targeted meetings with such as local tribes, health professionals, major industries and employers, and regional agencies. • Develop meeting summaries to inform the development of the Public Safety/Adaptation Plan and Implementation Guide (Task 5). • Responsible Party: LGC Item 9 Packet Page 191 Task 4.3: Educational Events City of San Luis Obispo Agreement Number 74A1165 Attachment II Page 9of13 • Host at least 4 climate science and adaptive capacity building events for the public with the aim of educating community members about current and future climate vulnerabilities in the City, and public safety and adaptation best practices that can be pursued at the community and/or individual level. • Evaluate different types of events that can be organized to appeal to different types of stakeholders (e.g. trivia night, lecture series, and videos). • Coordinate with external organizations (e.g. Central Coast Climate Collaborative, NOAA, USGS, and Cal Poly, San Luis Obispo) to identify educational materials, programs, or events that could be provided to the public. • Responsible Party: LGC Task Deliverable 4.1 Community Outreach Plan 4.2 A endas; summaries; 4.3 Agendas; summaries; 5. Safety Element of the General Plan All findings and products from previous tasks will serve as the foundation for developing the update to the Safety Element of the General Plan, which will becomes the City's adopted . The work funded in this grant will support the adaptation and climate resilience component of the Safety Element because the General Plan is the foundational planning document which all other plans and policies must be consistent with. Although focused on the Safety Element, the work will inform numerous in process and upcoming planning projects including the City's Active Transportation Plan, Housing Element of the General Plan, Parking and Access Plan, etc. The Project Team will first develop a menu of adaptation options and objectives for decision- makers to evaluate and select those most suitable for the City. The Team will then develop a robust Adaptation Strategy that identifies specific actions, cost estimates, timelines for implementation, and funding and financing options. As a corollary to the Strategy, the Team will prepare an Integration Guide and work plans for the top three prioritized implementation actions to enable the City to begin moving towards implementation immediately upon adoption. The Project Team will work with City staff to gain buy-in from local elected officials, agency executives, and staff across key departments in order to build a shared understanding of the City's adaptation goals, as well as to prioritize, implement, and operationalize the Adaptation Strategy. With many people -beyond the City's own residents -relying on the City's transportation system in order to commute to work, the City recognizes the important role it must play in ensuring its transportation systems and networks are well-adapted to the growing impacts of climate change. As such, the Adaptation Strategy will evaluate strategies that should be implemented regionally and will also be promoted and shared with neighboring jurisdictions and key regional agencies to seek overall alignment and mutual support. Item 9 Packet Page 192 Task 5.1: Menu of Adaptation Options City of San Luis Obispo Agreement Number 74A1165 Attachment II Page 10of13 • Establish specific adaptation goals, objectives, and targets based on Hazards and Vulnerabilities Assessment (Task 2), local policy audit (Task 3), overarching community resilience vision (Task 3), and public input (Task 4). Consider City's role in the regional economy, as the primary location of major employers, and the need to ensure transportation networks are well-adapted for both residents and commuters who rely upon infrastructure and services. Include specific targets that achieve both adaptation and transportation goals. • Develop potential adaptation strategies that address current and future hazards and vulnerabilities in a changing climate, while addressing community priorities. Review existing resources including Cal-Adapt, the Adaptation Clearinghouse, Fourth Assessment reports, the Adaptation Planning Guide, and local adaptation plans to develop a menu of options. • Working closely with City staff, rank adaptation strategies based on feasibility, impact, and other key criteria determined to identify priority strategies for inclusion in Adaptation Strategy. At minimum, priority strategies should be financially feasible and socially just, and align with community input gathered. • Responsible Party: Consultant Task 5.2: Safety Element of the General Plan Update • Develop General Plan adaptation and resilience strategies that identify short-, medium-, and long-term adaptation actions and opportunities. Based on feasibility analysis (Task 5.1), provide recommendations for overcoming any obstacles or barriers identified. For each action, include, at minimum, a cost estimate, high-level timeline for implementation, and the City department that should lead or coordinate. • Consider interdependencies between City and neighboring jurisdictions to identify policies and actions that should be pursued at the regional scale. • Assess funding and financing options available to pursue priority strategies identified, including Federal, State and Local grants, local tax measures, PACE financing, EIFDs, Opportunity Zones, and other innovative funding and financing mechanisms. • Note: CEQA compliance for the General Plan update will be conducted by the City and will not be funded through this grant request. • Responsible Party: Consultant Task 5.3: Integration Guide and Work Plans • Develop an Integration Guide, working closely with City staff, for the integration of the Safety Element adaptation and resilience strategies with the Capital Improvement Plan, operational budgets, biennial financial plans, and other key plans and procedures identified by the City. • Identify and/or develop model policies, ordinances, and resolutions to begin implementing policy and process changes committed to in the Safety Element. Policies should respond to existing and future hazards and vulnerabilities across key sectors including transportation, public health and safety, natural resources, and community development. • Work with City to identify staffing requirements and assignments, and develop detailed work plans to implement the top three prioritized implementation actions identified in the Adaptation Strategy. • Responsible Party: Consultant Item 9 Packet Page 193 Task· Deliverable . . 5.1 Matrix of adaJJfation oJJtions 5.2 UJJdated Safetv Element 5.3 lntearation Guide; work olans 6. Capacity Building . City of San Luis Obispo Agreement Number74A1165 Attachment 11 Page 11 of 13 : ·:: : ) : .. While the Safety Element will present a clear path forward for the City to begin implementing adaptation initiatives, plans alone are never enough. In order to move towards a more holistic approach to building resilience, it is essential to build capacity among key City departments and staff, as well as bolster coordination efforts. This task will begin with a Capacity and Coordination Assessment, which will ultimately develop an "organizational chart" of City departments, committees, and bodies, as well as regional agencies, climate change organizations, and community-based organizations working on climate change issues. The Assessment will evaluate existing roles and capacities of the various organizations identified. The Project Team will then · conduct a series of capacity building activities for City staff, utilizing the new Adaptation Capability Advancement (Adapt-CA) Toolkit, developed as part of California's Fourth Climate Change Assessment. Furthermore, the Team will examine current coordination and communication practices among departments and organizations that have overlapping responsibilities for adaptation actions and produce recommendations for enhancing coordination efforts and mainstreaming adaptation activities. Finally, in an effort to seek regional alignment and to further the broader field of adaptation in California, the Team will conduct a series of regional and statewide dissemination activities. Task 6.1: Capacity and Coordination Assessment • Review purviews of all City departments, committees, and bodies to assess who is responsible for transportation, public health and safety, and community resilience; their capacity and understanding of adaptation and resilience; and the level of coordination across the City bodies. • Interview City staff, regional agencies, climate change organizations, community- based organizations, a.nd other key stakeholder groups to increase understanding of roles, capacity, and interest in coordination. • Develop an "organizational chart" that provides a full picture of public and non-public agencies working on climate issues and provide a set of recommendations for improving coordination efforts. • Responsible Party: LGC Task 6.2: Capacity Building Activities • Based on the ecosystem of various entities, stakeholders, and organizations working on public safety and adaptation, conduct internal capacity building activities including at least 4 seminars, workshops, webinars, and/or coordination meetings for City staff to increase understanding of climate risks, discuss priority adaptation strategies, institutionalize adaptation principles, and establish internal coordination processes. • Establish mechanisms for ongoing coordination and collaboration for City staff to engage with key external stakeholders (e.g. Central Coast Climate Collaborative, FEMA, Cal FIRE, and regional transit agencies). • Responsible Party: LGC Item 9 Packet Page 194 Task 6.3: Statewide Dissemination City of San Luis Obispo Agreement Number74A1165 Attachment II Page 12 of 13 • Coordinate with key project partners to write a summary report to help other jurisdictions learn from the project and replicate it throughout the state. • Share results and report with other climate adaptation focused groups including the Alliance of Regional Collaboratives for Climate Adaptation and its member collaboratives in the Central Coast, North Coast, Sacramento Capital Region, San Francisco Bay Area, Sierra Nevada, Los Angeles County, and San Diego County. • Hold at least one webinar to share project results, with target audience of local jurisdictions and agencies in the Central Coast region, Caltrans staff, transportation agencies, public health groups, and other key stakeholders throughout California. • Develop a case study for ICARP for inclusion in Adaptation Clearinghouse and to further disseminate project results and key findings. • Responsible Party: LGC Deliverable Org chart; summary of roles/capacity; recommendations 6.1 memo 7. Administration Grant administration -including accounting, invoicing, submission of progress reports, and provision of documentation as required by Caltrans -will be managed by the City of San Luis Obispo. Task 7.1: Invoicing • Provide clear and detailed invoices to Caltrans on a quarterly basis. • Responsible Party: City Task 7.2: Reporting • Provide clear and detailed reports to Caltrans on a quarterly basis. • Responsible Party: City Deliv~rable 7.1 Quarter/ invoices to Ca/trans 7.2 Quarter/ re arts to Ca/trans Item 9 Packet Page 195 Project Title Fund California Department of Transportation Transportation Planning Grants Fiscal Year 2019-20 PROJECT TIMELINE Resilient San Luis Obispo Grantee !Cityof San Luis Obispo :n;;;11Sca1Nearl;2-ii1~'.!2:0J1;m1,n1;JEnJ11%Zd20121,L:1~J:1:nmn:1m:ll'Bf:Zo--:t1J.Z2mrn111mrn Task Number Task Name Ro=sponsible ""' Total Cost Grant Amount Local Cash Match Local In-Kind Match 'IAl,l <!Nlol,lcl <!Al ._,l,IAl'I QNlol,lcl <!Al ._,l,IAl'I QNl+cl <!Al• Defiverable ·:J:.. PrOie'ctliiitiilfiOn.a/}dCOoldiiiaifOh;;c;p;:;;; --1..::! Klckoff Meeting wtth Galtrar:s City $1,6\JO.ocil $0.00I $1,600.00 I I I Meeting surrrrary $0.00 $1,6UO.GDI I It l.'I g ~-.~---~-~ ···"'--~ •• ~ "--'---• "~---~ ••" M ~'"" M $2,000..00 Copy of executed subcontract $45D.OO MMnnn 2.2. 54,000.00 " $550.00 ~ R'oJect Coordination Ctty $2.0,600.00 $1_500..00 .;; Pf~j.,ctcn;.rter. ,. $2,DDO.OO Cap.; ~r-P,-a;;;,,e.ment procedures and execllled consuit;.nt contract[sl f>llootOl_g surrrranes ' ' :.1:. &dStiririiilndJ:'icJj?,;ted,c:clri~ii::,: 1:;-]l'J;;:; v Curre11tand Future Hazards Consultant $57,000.VD Assess=nt $52.000.0() S3,000.00I - ,2 Corrprehensive Vulnerabmty Assessment O;msultant 2.3 I Hazards artd Vulnerab~ities Report Consultant IAda-Ptli'fl!lh;l?;011CY:.ii'.li&ifllllhilliili!ii!:!lib!'.:!:H':;J;;\l'ii~''''• "' '' Local Por.cy Audtt CGC 02 State L<iw CofTll~ance TTmer"1e CGG ·i;,omm1dilti!!!5iffi'Eii1Ch:and'Eng.;:g;.,mem::1:,::'i · · ,_, CoITTTtJnity Outreach Ran CGC •2 CoITTTtJnity B1gagement Activities CGC $56,()()()_()(). S44,50o_oa $20,000.DD $13-200.00 4_3 IEflucationalEYents I LGC I $36,100.DOI (5\ 1\;,; '.$'ate' ',iE/i!ll\1elit'.lltt/Hi'GS.iMii"il:JPl<iifoi1ii !1tii1d;f•TillifLlJjfffij)fa S.1 Menu of Adaptation Options Consultant S26,oao.ool ,2 Safety Be=nt of the GenBral Flan Consultant " . S36,000.00 I $52,DDO.OO $4,000.00 $39,50D.OO $5,000.00 517,600.00 $2,400.00 $11,600.DD $1,600.00 li\IUIJEEE!Hlii!i1Jl .;:;11 $14,300..00 S2,800_()0 $0,000_()0 $4,700.00 $2,600..Q() $2.,000..00 '' 1nti"ion Guide and Work A<ins <lil · ·m!B~Pm11l Consultant $2.400,00 mn::1:·::;~1:1~nr.:11i nm '-' I capacity arid Coordfnation CGG Assessment $9,900.00 $1,800.00 smem $1,800.00 C2 O.pacTty Building Ac!Ntties CGC 512,900.00 $3,000.00 $3,000.00 '·' statewide Dissenination CGG $7,850.DO $4,850.00 S1,0{)().00 7ilil1 !ij,i:(@lili n::1n1:1~m11E!rn111 llvoTcing '-'"Y $14,300.00 $11,600.00 $2,700.00 ReoortTno $13 800.00 $11,600..00 $2.,2.00.00 ••• ,.'.!lb im\!Hlll:$ll35'.,~do iilil\\tli:l' . .4 Reimbursement of indirect costs is allowable upon a pp row I of an lndTrect Cost Allocation Plan fur each year of project acti~es. Proi.ide rate if indirect costs are included Tn the project budget Appro...,d Indirect Cost Rate: ___ % . $2,ooo_ooJ I I I I I I I I I 1 I I I I I I I I I I I I I I I 1111111111111111 $2,000.00 1111 Sumrrary rr-erros_ map(s), and rrodel(s) for each hazard area Risk Promos fortra:isportation, physical assets, and social and economc cooditions; GIS datasets Hazards and Vutnerabifrlies Report; sumrmry report; maps: surrrrary =tm5: PowerA>intpresentation, poster Sumrrary of pla.ros ;md pakies rEViewed; palicy crooswalk; corrm.mity resmence ,.~ Surrrrary of state laws; timeline for alignn-ent and corrpliance I I I O:mmJnity Outreach Aan Agerrlas; sum-raries: participant rsis Agendas; sumrmlies; parlicipantfLSts I I I I Matrix of adaptation ap!iaris 4><Jaled Safety Bemerrt ttegralfan Guide; work plans Org chart sumrary of roWcapacity; recorrrnendalions merm Meeting ager<!as; meeting surrrraries; rticiJ>antO.ts R'ojectsurrrrary report; weOOar, case ~,, I I !Ouarter1y invoices to Caltrans I I I Ouarte_rty reports to Caltrans Note: Each task must contain a grant amount and a local cash match amount. Lo cat cash match must be proportlon.allydistributed by the same percentage throughout each task. Local in-kind-match needs to be indicated where in-kind seri.ices will be used. Please rei.iewthe grant program section that you are applying to fur details on local match requTrements. The projecttimeline must be consistent with the scope of work. }> co Cil ~Q CD -:::l '< -o z-c (/) -u ~ 3 ~ !D ~CT <O ::+ CD I CDQ)""""5C ~ g. ----J c;;· w3to oro~rr -::i ~ Ci)" ~ --0>-0 w==c.no Item 9 Packet Page 196 Department Name: Police Cost Center: 8001 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Deanna Cantrell, Chief of Police Prepared By: Brian Amoroso, Operations Captain SUBJECT: INTRODUCE AN ORDINANCE AMENDING CHAPTER 5.20 (TAXICABS) OF THE SAN LUIS OBISPO MUNICIPAL CODE RECOMMENDATION Introduce an Ordinance amending Chapter 5.20 of the San Luis Obispo Municipal Code (Attachment A) to comply with new provisions set forth by the California State Legislature in Assembly Bill 939. DISCUSSION California Assembly Bill 939 was enacted by the State Legislature on September 18, 2018, which amended Sections 53075.5, 53075.51 and 53075.52 of the Government Code. These sections govern the obligations of a City related to taxicab companies and local regulation. As a result of this Assembly Bill, section 5.20 of the City of San Luis Obispo Municipal Code requires an amendment to comply with the provisions of the amended Government Code, Section 53075.5. The following changes to section 5.20 of the City of San Luis Obispo Municipal Code are recommended in order to comply with Assembly Bill 939. Suggested changes are bolded, with deletions in strikethrough. Text in italics is provided for reference. Amend Section 5.20.200 Operating Regulations to read as follows: A. A permitted taxicab company shall comply will the requirements set forth in Government Code Section 53075.5(h)(1-9) For reference, Government Code 53075.5: (h) A permitted taxicab company shall do all of the following: (1) Maintain reasonable financial responsibility to conduct taxicab transportation services in accordance with the requirements of an ordinance adopted pursuant to subdivision (a). (2) Participate in the pull-notice program pursuant to Section 1808.1 of the Vehicle Code to regularly check the driving records of all taxicab drivers, whether employees or contractors. Item 10 Packet Page 197 (3) Maintain a safety education and training program in effect for all taxicab drivers, whether employees or contractors. (4) Maintain a disabled access education and training program to instruct its taxicab drivers on compliance with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) and amendments thereto, and state disability rights laws, including making clear that it is illegal to decline to serve a person with a disability or who has a service animal. (5) Maintain its motor vehicles used in taxicab transportation services in a safe operating condition, and in compliance with the Vehicle Code, subject to annual inspection by the city or county in which it is substantially located, at a facility that is certified by the National Institute for Automotive Service Excellence or a facility registered with the Bureau of Automotive Repair. (6) Provide the city or county that has issued a permit under this article an address of an office or terminal where documents supporting the factual matters specified in the showing required by this subdivision may be inspected by the permitting city or county. (7) Provide for a taxicab driver fingerprint-based criminal history check and a drug and alcohol testing program pursuant to paragraph (3) of subdivision (b). (8) Comply with all provisions of an ordinance adopted pursuant to subdivision (a). (9) Provide documentation and trip data in the format required by an ordinance adopted pursuant to subdivision (a) substantiating that the total number of prearranged and non-prearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips over the applicable time period described in clause (ii) of subparagraph (A) or subclause (II) of clause (ii) of subparagraph (B) of paragraph (5) of subdivision (k). B. (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by the City of San Luis Obispo where the taxicab company is substantially located within the City of San Luis Obispo. (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the City of San Luis Obispo. C. A Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry his or her passenger to his or her destination saf ely and expeditiously. D. No driver of any licensed taxicab shall prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex or any characteristic listed or defined in Government Code Section 11135. Item 10 Packet Page 198 E. B. No driver of any licensed taxicab shall refuse any person prompt taxi service in the city at any time while such taxicab is on the public streets ready for service, unless taxicab is already engaged in the carrying of one or more passengers or is en -route to answer a call for taxicab service; provided further, that nothing in this subsection shall require any owner or driver to furnish taxicab service to any person under the influence of intoxicating liquor or narcotics, or to any person who is insane or who is a known criminal. F. C. Every driver, upon request, shall give a correct receipt for the amount of paym ent received. G. D. No driver of any taxicab shall accept, take into his or her vehicle or transport any larger number of passengers than the rates covering the seating capacity of his or her vehicle. H. E. No driver shall permit any taxicab to remain standing in any established taxicab stand, unless the cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering the telephone. I. F. No driver shall carry any passenger other than paying passengers or persons authorized by or on company business. J. G. Every driver shall at all times display his or her driver’s permit and picture in a conspicuous place in the taxicab which he or she is operating. K. H. Any violation of the provisions of this section shall be cause for the revocation of the permit of the driver guilty of such violation. (Prior code § 6240.18) Amend Section 5.20.250 Return of Driver’s permit upon termination of employment to read as follows: The driver employer shall notify the chief of police of his or her the driver’s termination of employment with the listed employer and shall return the driver’s permit to the chief of police. The driver’s permit shall become null and void upon the driver’s termination of employment. (Ord. 1298 § 1, 1996) Amend Section 5.20.280 Taximeter – Required to read as follows: All taxicabs operated under the authority of this chapter shall, within thirty days after written notice by the city, be equipped with meters fastened in front of the passengers, visible to them at all times of the day or night; and after sundown the face of the meter shall be illuminated, the accuracy of meters to be installed shall be tested, approved and sealed by the county department of weights and measures at all points and connections which, if manipulated, would affect their correct reading and recording. The taxi company may use any type of device or technology reviewed by the Division of Measurement Standards to calculate fares, including using Global Positioning System metering, provided that the device or technology complies with Business and Professions Code Section 12500.5 Item 10 Packet Page 199 and with regulations established pursuant to Business and Professions Code Section 12107. Each meter shall have a flag or approved device to denote when the vehicle is employed and when it is not employed and it shall be the duty of the driver to throw the flag or device into a recording position when employed and into a nonrecording position at the termination of each trip. The meter shall be subject to inspection from time to time and upon discovery of any inaccuracies therein, the taxi shall be kept off the highway until the meter is repaired or replaced. (Prior code § 6240.28) Policy Context California Assembly Bill 939 was enacted by the State Legislature on September 18, 2018, which amended Sections 53075.5, 53075.51 and 53075.52 of the Government Code. These sections govern the obligations of a City related to taxicab companies and local regulation. Assembly Bill 939 (Attachment B) California Government Code 53075.5 (Attachment C) California Government Code 53075.51 (Attachment D) California Government Code 53075.52 (Attachment E) Current San Luis Obispo Municipal Code Section 5.20 (Attachment F) Public Engagement The proposed amendment is required to comply with Assembly Bill 939 which was a publicly debated and adopted statewide bill. This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. 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 10 Packet Page 200 FISCAL IMPACT Budgeted: No Budget Year: Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total The changes required by Assembly Bill 939 require the taxicab companies comply with the ordinance. The only fiscal impact to the City would be in the form of staff time processing a violation to the ordinance which can be accommodated within current budgetary allocations. ALTERNATIVES Council could choose to not accept these amendments to the Municipal Code, however these changes are codified and required by law. Attachments: a - Draft Ordinance b - Assembly Bill 939 c - Government Code 53075.5 d - Government Code 53075.51 e - Government Code 53075.52 f - COUNCIL READING FILE - San Luis Obispo Municipal Code 5.20 - Taxicabs Item 10 Packet Page 201 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING MUNICIPAL CODE TITLE 5.20 REGARDING TAXICABS WHEREAS, the California Legislature issued an update to California Government Code 53075.5 pertaining to taxicab transportation service, driver's permit, drug testing, local ordinances, and regulations; and WHEREAS, the update to the California Government Code 533075.5 went into effect on January 1, 2019; and WHEREAS, the City of San Luis Obispo amends its Municipal Code Title 5.20 pertaining to taxicabs to comply with California Government Code 53075.5’s legislative update. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 5.20.200 of the San Luis Obispo Municipal Code, entitled Operating regulations, is hereby amended to read as follows: 5.20.200 Operating regulations A. A permitted taxicab company shall comply with the requirements set forth in Government Code Section 53075.5(h)(1-9) B. (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by the City of San Luis Obispo where the taxicab company is substantially located within the City of San Luis Obispo. (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the City of San Luis Obispo. C. Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry his or her passenger to his or her destination safely and expeditiously. D. No driver of any licensed taxicab shall prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex or any characteristic listed or defined in Government Code Section 11135. E. No driver of any licensed taxicab shall refuse any person prompt taxi service in the city Item 10 Packet Page 202 Ordinance No. _____ (2020 Series) Page 2 O ______ at any time while such taxicab is on the public str eets ready for service, unless taxicab is already engaged in the carrying of one or more passengers or is en route to answer a call for taxicab service; provided further, that nothing in this subsection shall require any owner or driver to furnish taxicab service to any person under the influence of intoxicating liquor or narcotics, or to any person who is insane or who is a known criminal. F. Every driver, upon request, shall give a correct receipt for the amount of payment received. G. No driver of any taxicab shall accept, take into his or her vehicle or transport any larger number of passengers than the rates covering the seating capacity of his or her vehicle. H. No driver shall permit any taxicab to remain standing in any established taxicab stand, unless the cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering the telephone. I. No driver shall carry any passenger other than paying passengers or persons authorized by or on company business. J. Every driver shall at all times display his or her driver’s permit and picture in a conspicuous place in the taxicab which he or she is operating. K. Any violation of the provisions of this section shall be cause for the revocation of the permit of the driver guilty of such violation. (Prior code § 6240.18) SECTION 2. Section 5.20.250 of the San Luis Obispo Municipal Code, entitled Return of driver’s permit upon termination of employment, is hereby amended to read as follows: 5.20.250 Return of driver’s permit upon termination of employment. The driver employer shall notify the chief of police of his or her the driver’s termination of employment with the listed employer and shall return the driver’s permit to the chief of police. The driver’s permit shall become null and void upon the driver’s termination of employment. (Ord. 1298 § 1, 1996) SECTION 3. Section 5.20.280 of the San Luis Obispo Municipal Code, entitled Taximeter - Required, is hereby amended to read as follows: 5.20.280 Taximeter – Required All taxicabs operated under the authority of this chapter shall, within thirty days after written notice by the city, be equipped with meters fastened in front of the passengers, visible to them at all times of the day or night; and after sundown the face of the meter shall be illuminated, the accuracy of meters to be installed shall be tested, approved and sealed by the county department of weights and measures at all points and connections Item 10 Packet Page 203 Ordinance No. _____ (2020 Series) Page 3 O ______ which, if manipulated, would affect their correct reading and recording. The taxi company may use any type of device or technology reviewed by the Division of Measurement Standards to calculate fares, including using Global Positioning System metering, provided that the device or technology complies with Business and Professions Code Section 12500.5 and with regulations established pursuant to Business and Professions Code Section 12107. Each meter shall have a flag or approved device to denote when the vehicle is employed and when it is not employed and it shall be the duty of the driver to throw the flag or device into a recording position when employed and into a nonrecording position at the termination of each trip. The meter shall be subject to inspection from time to time and upon discovery of any inaccuracies therein, the taxi shall be kept off the highway until the meter is repaired or replaced. (Prior code § 6240.28) SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ____ day of ____, 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: Item 10 Packet Page 204 Ordinance No. _____ (2020 Series) Page 4 O ______ _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, 2020. ______________________________ Teresa Purrington City Clerk Item 10 Packet Page 205 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 1/6 SHARE THIS:Date Published: 09/18/2018 09:00 PM AB-939 Local government: taxicab transportation services.(2017-2018) Assembly Bill No. 939 CHAPTER 472 An act to amend Sections 53075.5, 53075.51, and 53075.52 of the Government Code, relating to local government. [ Approved by Governor September 18, 2018. Filed with Secretary of State September 18, 2018. ] LEGISLATIVE COUNSEL'S DIGEST AB 939, Low. Local government: taxicab transportation services. (1) Existing law, commencing on January 1, 2019, requires every city or county in which a taxicab is substantially located to adopt an ordinance or resolution in regard to taxicab transportation service and requires each city or county to provide for a policy for entry into the business of providing taxicab transportation service, the establishment or registration of rates for the provision of taxicab transportation service, and a mandatory controlled substance and alcohol testing certification program for drivers. Existing law similarly authorizes the City and County of San Francisco, regardless of whether or not a taxicab company is substantially located within that city and county. Existing law prohibits a city or county from requiring a taxicab company or driver to comply with specified local regulations, unless that taxicab company or driver is substantially located within that city or county. Existing law prohibits a taxicab company or a taxicab driver from operating within a county unless the company and driver are substantially located in at least one city within that county or the unincorporated area of that county. Existing law authorizes a permitted taxicab company to arrange prearranged trips anywhere within the county in which it has obtained a permit. This bill would, instead, require each city or county in which a taxicab company is substantially located to adopt an ordinance or resolution in regards to taxicab transportation service, that includes provisions for a permitting program for taxicab drivers, and would provide that it is unlawful to operate a taxicab company without a valid permit to operate issued by each city or county in which the taxicab company is substantially located. The bill would remove the prohibition on a taxicab company or a taxicab driver from operating within a county unless the company and driver are substantially located in at least one city within that county or the unincorporated area of that county. The bill would authorize a taxicab company permitted by a city or a county to arrange prearranged trips anywhere within that county. The bill would define “permitted taxicab company” for these purposes to mean a taxicab service provider that obtains all necessary permits required by these provisions, and to include a taxicab driver if a taxicab company consists of only one driver. (2) Existing law requires a permitted taxicab company to comply with certain requirements, including that it be subject to an annual inspection by the Bureau of Automotive Repair. This bill would, instead, require a permitted taxicab company to be subject to an annual inspection by the city or county in which it is substantially located, at a facility that is certified by the National Institute for Automotive Service Excellence or a facility registered with the Bureau of Automotive Repair. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Item 10 Packet Page 206 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 2/6 (3) Existing law deems a city or county in which a taxicab company operates as a city or county in which a taxicab company driver is substantially located if the city or county enacts a resolution of intention to enter into a joint exercise of powers agreement or join a joint powers authority, or to enter into an agreement with a transit agency, for the purpose of regulating or administering taxicab companies. This bill would, instead, authorize a city or county to enter into an agreement with another city or county to form a joint powers authority, or to enter into an agreement with a transit agency, for the purpose of regulating or administering taxicab companies and taxicab drivers, as applicable, that are substantially located within the jurisdictional boundaries of that entity. (4) Existing law defines the term “substantially located” for these purposes to mean that the taxicab company has a primary business address within that jurisdiction, or that trips originating within that jurisdiction account for the largest share of the company’s total number of trips within the county within the past year, and determined every 5 years thereafter. Existing law requires a taxicab company to collect specified data in order to determine what jurisdiction that company is substantially located in. This bill would modify the test to specify that a taxicab company is substantially located within a city or county if that company has a primary business address within the jurisdiction of that entity, or if the total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips within each county where the taxicab company operated over the previous calendar year, as determined annually. The bill would establish a modified test for a taxicab company that initiates taxicab operations after January 1, 2019, in a county in which that company had not previously operated, by providing that for the first year of its operation the taxicab company is substantially located only in the jurisdiction in which it has a primary business address, and from that point forward would provide that the general substantially located test described above applies to determine whether the taxicab company is substantially located in a jurisdiction. The bill would make conforming changes to that effect. The bill would require a taxicab company that changes from being substantially located in one city or county to another to notify the new city or county 6 months before making that change. (5) By imposing additional duties on local governments, this bill would impose a state-mandated local program. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 53075.5 of the Government Code, as added by Section 3 of Chapter 753 of the Statutes of 2017, is amended to read: 53075.5. (a) Notwithstanding Chapter 8 (commencing with Section 5351) of Division 2 of the Public Utilities Code, every city or county in which a taxicab company is substantially located, as defined in paragraph (5) of subdivision (k), shall protect the public health, safety, and welfare by adopting an ordinance or resolution in regard to taxicab transportation service rendered in vehicles designed for carrying not more than eight persons, excluding the driver, which are operated within the jurisdiction of the city or county. (b) Each city or county that adopts an ordinance pursuant to subdivision (a) shall provide for, but is not limited to providing for, the following in that ordinance: (1) A policy for entry into the business of providing taxicab transportation service. The policy shall include, but need not be limited to, a permitting program for taxicab drivers that includes all of the following provisions: (A) Employment, or an offer of employment, as a taxicab driver in the jurisdiction, including compliance with all of the requirements of the program adopted pursuant to paragraph (3), shall be a condition of issuance of a driver’s permit. (B) The driver’s permit shall become void upon termination of employment. (C) The driver’s permit shall state the name of the employer. Item 10 Packet Page 207 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 3/6 (D) The employer shall notify the city or county upon termination of employment. (E) The driver shall return the permit to the city or county upon termination of employment. (2) The establishment or registration of rates for the provision of taxicab transportation service that meets the following requirements: (A) The taxicab company may set fares or charge a flat rate. However, the city or county may set a maximum rate. (B) The taxicab company may use any type of device or technology approved by the Division of Measurement Standards to calculate fares, including the use of Global Positioning System metering, provided that the device or technology complies with Section 12500.5 of the Business and Professions Code and with all regulations established pursuant to Section 12107 of the Business and Professions Code. (C) The taxicab company shall disclose fares, fees, or rates to the customer. A permitted taxicab company may satisfy this requirement by disclosing fares, fees, or rates on its Internet Web site, mobile telephone application, or telephone orders upon request by the customer. (D) The taxicab company shall notify the passenger of the applicable rate prior to the passenger accepting the ride for walkup rides and street hails. The rate may be provided on the exterior of the vehicle, within an application of a mobile telephone, device, or other Internet-connected device, or be clearly visible in either print or electronic form inside the taxicab. (3) (A) A mandatory controlled substance and alcohol testing certification program. The program shall include, but need not be limited to, all of the following requirements: (i) Drivers shall test negative for each of the controlled substances specified in Part 40 (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations, before employment. Drivers shall test negative for these controlled substances and for alcohol as a condition of permit renewal or, if no periodic permit renewals are required, at such other times as the city or county shall designate. As used in this section, a negative test for alcohol means an alcohol screening test showing a breath alcohol concentration of less than 0.02 percent. (ii) Procedures shall be substantially as in Part 40 (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations, except that the driver shall show a valid California driver’s license at the time and place of testing, and except as provided otherwise in this section. Requirements for rehabilitation and for return-to-duty and followup testing and other requirements, except as provided otherwise in this section, shall be substantially as in Part 382 (commencing with Section 382.101) of Title 49 of the Code of Federal Regulations. (iii) A test in one jurisdiction shall be accepted as meeting the same requirement in any other jurisdiction. Any negative test result shall be accepted for one year as meeting a requirement for periodic permit renewal testing or any other periodic testing in that jurisdiction or any other jurisdiction, if the driver has not tested positive subsequent to a negative result. However, an earlier negative result shall not be accepted as meeting the preemployment testing requirement for any subsequent employment, or any testing requirements under the program other than periodic testing. (iv) In the case of a self-employed independent driver, the test results shall be reported directly to the city or county, which shall notify the taxicab leasing company of record, if any, of positive results. In all other cases, the results shall be reported directly to the employing transportation operator, who may be required to notify the city or county of positive results. (v) All test results are confidential and shall not be released without the consent of the driver, except as authorized or required by law. (vi) Self-employed independent drivers shall be responsible for compliance with, and shall pay all costs of, this program with regard to themselves. Employing transportation operators shall be responsible for compliance with, and shall pay all costs of, this program with respect to their employees and potential employees, except that an operator may require employees who test positive to pay the costs of rehabilitation and of return-to-duty and followup testing. (vii) Upon the request of a driver applying for a permit, the city or county shall give the driver a list of the consortia certified pursuant to Part 382 (commencing with Section 382.101) of Title 49 of the Code of Federal Regulations that the city or county knows offer tests in or near the jurisdiction. Item 10 Packet Page 208 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 4/6 (B) No evidence derived from a positive test result pursuant to the program shall be admissible in a criminal prosecution concerning unlawful possession, sale, or distribution of controlled substances. (c) Each city or county may levy service charges, fees, or assessments in an amount sufficient to pay for the costs of carrying out an ordinance or resolution adopted in regard to taxicab transportation services pursuant to this section. (d) (1) The city or county may issue to a taxicab company that complies with all provisions of this section and Section 53075.52, and with all applicable local ordinances or resolutions of that city or county, an inspection sticker, photo permit, or other inspection compliance device. A taxicab driver shall display the applicable inspection sticker, photo permit, or other inspection compliance device in a place visible to a passenger. (2) A city or county may accept a taxicab company or driver permit issued by another city or county as valid, and may issue to that taxicab company an inspection sticker or photo permit that authorizes that taxicab company or driver to operate within the county. (e) A city or county shall not require a taxicab company or driver to obtain a business license, service permit, car inspection certification, or driver permit, or to comply with any requirement under this section or Section 53075.52, unless the company or driver is substantially located within the jurisdiction of that city or county. (f) A taxicab company permitted by a city or county may provide prearranged trips anywhere within that county. (g) A permitted taxicab company shall not prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex, or any characteristic listed or defined in Section 11135 of the Government Code. (h) A permitted taxicab company shall do all of the following: (1) Maintain reasonable financial responsibility to conduct taxicab transportation services in accordance with the requirements of an ordinance adopted pursuant to subdivision (a). (2) Participate in the pull-notice program pursuant to Section 1808.1 of the Vehicle Code to regularly check the driving records of all taxicab drivers, whether employees or contractors. (3) Maintain a safety education and training program in effect for all taxicab drivers, whether employees or contractors. (4) Maintain a disabled access education and training program to instruct its taxicab drivers on compliance with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) and amendments thereto, and state disability rights laws, including making clear that it is illegal to decline to serve a person with a disability or who has a service animal. (5) Maintain its motor vehicles used in taxicab transportation services in a safe operating condition, and in compliance with the Vehicle Code, subject to annual inspection by the city or county in which it is substantially located, at a facility that is certified by the National Institute for Automotive Service Excellence or a facility registered with the Bureau of Automotive Repair. (6) Provide the city or county that has issued a permit under this article an address of an office or terminal where documents supporting the factual matters specified in the showing required by this subdivision may be inspected by the permitting city or county. (7) Provide for a taxicab driver fingerprint-based criminal history check and a drug and alcohol testing program pursuant to paragraph (3) of subdivision (b). (8) Comply with all provisions of an ordinance adopted pursuant to subdivision (a). (9) Provide documentation and trip data in the format required by an ordinance adopted pursuant to subdivision (a) substantiating that the total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips over the applicable time period described in clause (ii) of subparagraph (A) or subclause (II) of clause (ii) of subparagraph (B) of paragraph (5) of subdivision (k). (i) (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by each city or county in which the taxicab company is substantially located. Item 10 Packet Page 209 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 5/6 (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the permitting city or county. (j) (1) Notwithstanding paragraph (5) of subdivision (k), a city or county may do either of the following: (A) Enter into an agreement with any other city or county to form a joint powers authority for the purpose of regulating or administering taxicab companies and taxicab drivers that are substantially located within the jurisdictional boundaries of the joint powers authority. For purposes of this clause, a taxicab company is substantially located within the jurisdictional boundaries of the joint powers authority if it is substantially located within one of the parties to the joint powers agreement. (B) Enter into an agreement with a transit agency for the purpose of regulating or administering the taxicab companies substantially located within the jurisdictional boundaries of the transit agency. For purposes of this clause, a taxicab company is substantially located within the jurisdictional boundaries of the transit agency if it is substantially located within the city or county that enters into an agreement pursuant to this clause, and the transit agency may exercise all powers granted to the city or county that is a party to the agreement by this section in order to regulate or administer taxicab companies within those boundaries. (2) A city or county that forms a joint powers authority, or enters into an agreement with a transit agency, to regulate or administer taxicab companies pursuant to paragraph (1) shall not issue permits or require business licenses except as consistent with the terms of that agreement. (k) For purposes of this section and Sections 53075.51 and 53075.52: (1) “City or county” includes a charter city or charter county, but does not include the City and County of San Francisco. (2) “Employment” includes self-employment as an independent driver. (3) “Permitted taxicab company” means a taxicab service provider that obtains all necessary permits required by this article, and includes a taxicab driver if a taxicab company consists of only one driver. (4) “Prearranged trip” means trip using an online enabled application, dispatch, or Internet Web site. (5) (A) “Substantially located” means in reference to a city or county that the taxicab company meets either of the following: (i) Has its primary business address within that city’s or county’s jurisdiction. (ii) The total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips within each county where the taxicab company operated over the previous calendar year, as determined annually. (B) Notwithstanding subparagraph (A), “substantially located” means, for a taxicab company that initiates taxicab operations after January 1, 2019, in reference to a city or county in which that company had not operated before January 1, 2019, the following: (i) In the first year of its operation, the jurisdiction where that company has its primary business address. (ii) After the first year of operation, it meets the test described in subparagraph (A). (C) A taxicab company may be substantially located in more than one jurisdiction. (l) Notwithstanding any other provision of this section, an airport operator shall have separate and ultimate authority to regulate taxicab access to the airport and set access fees for taxicabs at the airport. (m) Nothing in this section, or Section 53075.51, 53075.52, or 53075.53 shall affect the authority of a jurisdiction to regulate taxi access to an airport it owns or operates and to set access fees or requirements. (n) This section shall become operative on January 1, 2019. SEC. 2. Section 53075.51 of the Government Code is amended to read: 53075.51. (a) Any city or county, regardless of whether a taxicab company is substantially located within its jurisdiction as defined in Section 53075.5, may adopt, by ordinance, operating requirements for taxicab Item 10 Packet Page 210 1/13/2020 Bill Text - AB-939 Local government: taxicab transportation services. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB939 6/6 companies and taxicab drivers that do not relate to permitting or business licensing, including, but not limited to, all of the following: (1) Limits on the number of taxicab companies that may use taxi stand areas or pickup street hails within that city’s or county’s jurisdictional boundaries. If a city or county chooses to limit the number of taxis that use the stand areas or pick up street hails, the city or county shall identify those vehicles with a window sticker and shall not establish additional requirements or costs to the taxis beyond that authorized by Section 53075.5 or this section. (2) Requirements on a taxicab company to provide services in a manner that provides equal accessibility for all populations within the jurisdictional boundaries of the city or county. (3) Other public health, safety, or welfare ordinances relating to taxicabs. (b) Compliance with requirements adopted pursuant to subdivision (a) shall not be a condition for issuance of a permit. (c) A city or county may administratively impose civil liability for violation of ordinances adopted pursuant to this section. The minimum fine for violation of ordinances relative to this section shall be one hundred dollars ($100) and shall not exceed one thousand dollars ($1,000). Civil liability imposed pursuant to this section shall be paid to the city or county where the violation occurred and expended solely for the purposes of this chapter. (d) This section shall become operative on January 1, 2019. SEC. 3. Section 53075.52 of the Government Code is amended to read: 53075.52. Beginning January 1, 2018, taxicab companies shall collect data that demonstrates the total number of prearranged and nonprearranged trips that originate within a particular local jurisdiction for the purpose of determining where that taxicab company is substantially located, and shall provide that data to the city or county in which it is substantially located, consistent with paragraph (9) of subdivision (h) of Section 53075.5. Beginning January 1, 2019, the trip data collected in the previous 12 months shall be provided upon date of renewal to the city or county in which the taxicab company is substantially located. If a taxicab company changes from being substantially located in one city or county to another, the taxicab company shall notify the new city or county six months before making that change and shall comply with the requirements of subparagraph (B) of paragraph (5) of subdivision (k) of Section 53075.5. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. Item 10 Packet Page 211 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.5.&lawCode=GOV 1/4 Code:Select Code Section:Search TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) CHAPTER 1. General [53000 - 53170] ( Chapter 1 added by Stats. 1949, Ch. 81. ) 53075.5. Up^ << Previous Next >> cross-reference chaptered bills PDF | Add To My Favorites Search Phrase: Highlight GOVERNMENT CODE - GOV ARTICLE 4. Miscellaneous [53060 - 53087.8] ( Article 4 added by Stats. 1951, Ch. 522. ) (a) Notwithstanding Chapter 8 (commencing with Section 5351) of Division 2 of the Public Utilities Code, every city or county in which a taxicab company is substantially located, as defined in paragraph (5) of subdivision (k), shall protect the public health, safety, and welfare by adopting an ordinance or resolution in regard to taxicab transportation service rendered in vehicles designed for carrying not more than eight persons, excluding the driver, which are operated within the jurisdiction of the city or county. (b) Each city or county that adopts an ordinance pursuant to subdivision (a) shall provide for, but is not limited to providing for, the following in that ordinance: (1) A policy for entry into the business of providing taxicab transportation service. The policy shall include, but need not be limited to, a permitting program for taxicab drivers that includes all of the following provisions: (A) Employment, or an offer of employment, as a taxicab driver in the jurisdiction, including compliance with all of the requirements of the program adopted pursuant to paragraph (3), shall be a condition of issuance of a driver’s permit. (B) The driver’s permit shall become void upon termination of employment. (C) The driver’s permit shall state the name of the employer. (D) The employer shall notify the city or county upon termination of employment. (E) The driver shall return the permit to the city or county upon termination of employment. (2) The establishment or registration of rates for the provision of taxicab transportation service that meets the following requirements: (A) The taxicab company may set fares or charge a flat rate. However, the city or county may set a maximum rate. (B) The taxicab company may use any type of device or technology approved by the Division of Measurement Standards to calculate fares, including the use of Global Positioning System metering, provided that the device or technology complies with Section 12500.5 of the Business and Professions Code and with all regulations established pursuant to Section 12107 of the Business and Professions Code. (C) The taxicab company shall disclose fares, fees, or rates to the customer. A permitted taxicab company may satisfy this requirement by disclosing fares, fees, or rates on its Internet Web site, mobile telephone application, or telephone orders upon request by the customer. (D) The taxicab company shall notify the passenger of the applicable rate prior to the passenger accepting the ride for walkup rides and street hails. The rate may be provided on the exterior of the vehicle, within an application of a mobile telephone, device, or other Internet-connected device, or be clearly visible in either print or electronic form inside the taxicab. (3) (A) A mandatory controlled substance and alcohol testing certification program. The program shall include, but need not be limited to, all of the following requirements: Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Item 10 Packet Page 212 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.5.&lawCode=GOV 2/4 (i) Drivers shall test negative for each of the controlled substances specified in Part 40 (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations, before employment. Drivers shall test negative for these controlled substances and for alcohol as a condition of permit renewal or, if no periodic permit renewals are required, at such other times as the city or county shall designate. As used in this section, a negative test for alcohol means an alcohol screening test showing a breath alcohol concentration of less than 0.02 percent. (ii) Procedures shall be substantially as in Part 40 (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations, except that the driver shall show a valid California driver’s license at the time and place of testing, and except as provided otherwise in this section. Requirements for rehabilitation and for return-to-duty and followup testing and other requirements, except as provided otherwise in this section, shall be substantially as in Part 382 (commencing with Section 382.101) of Title 49 of the Code of Federal Regulations. (iii) A test in one jurisdiction shall be accepted as meeting the same requirement in any other jurisdiction. Any negative test result shall be accepted for one year as meeting a requirement for periodic permit renewal testing or any other periodic testing in that jurisdiction or any other jurisdiction, if the driver has not tested positive subsequent to a negative result. However, an earlier negative result shall not be accepted as meeting the preemployment testing requirement for any subsequent employment, or any testing requirements under the program other than periodic testing. (iv) In the case of a self-employed independent driver, the test results shall be reported directly to the city or county, which shall notify the taxicab leasing company of record, if any, of positive results. In all other cases, the results shall be reported directly to the employing transportation operator, who may be required to notify the city or county of positive results. (v) All test results are confidential and shall not be released without the consent of the driver, except as authorized or required by law. (vi) Self-employed independent drivers shall be responsible for compliance with, and shall pay all costs of, this program with regard to themselves. Employing transportation operators shall be responsible for compliance with, and shall pay all costs of, this program with respect to their employees and potential employees, except that an operator may require employees who test positive to pay the costs of rehabilitation and of return-to-duty and followup testing. (vii) Upon the request of a driver applying for a permit, the city or county shall give the driver a list of the consortia certified pursuant to Part 382 (commencing with Section 382.101) of Title 49 of the Code of Federal Regulations that the city or county knows offer tests in or near the jurisdiction. (B) No evidence derived from a positive test result pursuant to the program shall be admissible in a criminal prosecution concerning unlawful possession, sale, or distribution of controlled substances. (c) Each city or county may levy service charges, fees, or assessments in an amount sufficient to pay for the costs of carrying out an ordinance or resolution adopted in regard to taxicab transportation services pursuant to this section. (d) (1) The city or county may issue to a taxicab company that complies with all provisions of this section and Section 53075.52, and with all applicable local ordinances or resolutions of that city or county, an inspection sticker, photo permit, or other inspection compliance device. A taxicab driver shall display the applicable inspection sticker, photo permit, or other inspection compliance device in a place visible to a passenger. (2) A city or county may accept a taxicab company or driver permit issued by another city or county as valid, and may issue to that taxicab company an inspection sticker or photo permit that authorizes that taxicab company or driver to operate within the county. (e) A city or county shall not require a taxicab company or driver to obtain a business license, service permit, car inspection certification, or driver permit, or to comply with any requirement under this section or Section 53075.52, unless the company or driver is substantially located within the jurisdiction of that city or county. (f) A taxicab company permitted by a city or county may provide prearranged trips anywhere within that county. (g) A permitted taxicab company shall not prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex, or any characteristic listed or defined in Section 11135 of the Government Code. (h) A permitted taxicab company shall do all of the following: (1) Maintain reasonable financial responsibility to conduct taxicab transportation services in accordance with the requirements of an ordinance adopted pursuant to subdivision (a). Item 10 Packet Page 213 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.5.&lawCode=GOV 3/4 (2) Participate in the pull-notice program pursuant to Section 1808.1 of the Vehicle Code to regularly check the driving records of all taxicab drivers, whether employees or contractors. (3) Maintain a safety education and training program in effect for all taxicab drivers, whether employees or contractors. (4) Maintain a disabled access education and training program to instruct its taxicab drivers on compliance with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) and amendments thereto, and state disability rights laws, including making clear that it is illegal to decline to serve a person with a disability or who has a service animal. (5) Maintain its motor vehicles used in taxicab transportation services in a safe operating condition, and in compliance with the Vehicle Code, subject to annual inspection by the city or county in which it is substantially located, at a facility that is certified by the National Institute for Automotive Service Excellence or a facility registered with the Bureau of Automotive Repair. (6) Provide the city or county that has issued a permit under this article an address of an office or terminal where documents supporting the factual matters specified in the showing required by this subdivision may be inspected by the permitting city or county. (7) Provide for a taxicab driver fingerprint-based criminal history check and a drug and alcohol testing program pursuant to paragraph (3) of subdivision (b). (8) Comply with all provisions of an ordinance adopted pursuant to subdivision (a). (9) Provide documentation and trip data in the format required by an ordinance adopted pursuant to subdivision (a) substantiating that the total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips over the applicable time period described in clause (ii) of subparagraph (A) or subclause (II) of clause (ii) of subparagraph (B) of paragraph (5) of subdivision (k). (i) (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by each city or county in which the taxicab company is substantially located. (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the permitting city or county. (j) (1) Notwithstanding paragraph (5) of subdivision (k), a city or county may do either of the following: (A) Enter into an agreement with any other city or county to form a joint powers authority for the purpose of regulating or administering taxicab companies and taxicab drivers that are substantially located within the jurisdictional boundaries of the joint powers authority. For purposes of this clause, a taxicab company is substantially located within the jurisdictional boundaries of the joint powers authority if it is substantially located within one of the parties to the joint powers agreement. (B) Enter into an agreement with a transit agency for the purpose of regulating or administering the taxicab companies substantially located within the jurisdictional boundaries of the transit agency. For purposes of this clause, a taxicab company is substantially located within the jurisdictional boundaries of the transit agency if it is substantially located within the city or county that enters into an agreement pursuant to this clause, and the transit agency may exercise all powers granted to the city or county that is a party to the agreement by this section in order to regulate or administer taxicab companies within those boundaries. (2) A city or county that forms a joint powers authority, or enters into an agreement with a transit agency, to regulate or administer taxicab companies pursuant to paragraph (1) shall not issue permits or require business licenses except as consistent with the terms of that agreement. (k) For purposes of this section and Sections 53075.51 and 53075.52: (1) “City or county” includes a charter city or charter county, but does not include the City and County of San Francisco. (2) “Employment” includes self-employment as an independent driver. (3) “Permitted taxicab company” means a taxicab service provider that obtains all necessary permits required by this article, and includes a taxicab driver if a taxicab company consists of only one driver. (4) “Prearranged trip” means trip using an online enabled application, dispatch, or Internet Web site. (5) (A) “Substantially located” means in reference to a city or county that the taxicab company meets either of the following: (i) Has its primary business address within that city’s or county’s jurisdiction. Item 10 Packet Page 214 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.5.&lawCode=GOV 4/4 (ii) The total number of prearranged and nonprearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips within each county where the taxicab company operated over the previous calendar year, as determined annually. (B) Notwithstanding subparagraph (A), “substantially located” means, for a taxicab company that initiates taxicab operations after January 1, 2019, in reference to a city or county in which that company had not operated before January 1, 2019, the following: (i) In the first year of its operation, the jurisdiction where that company has its primary business address. (ii) After the first year of operation, it meets the test described in subparagraph (A). (C) A taxicab company may be substantially located in more than one jurisdiction. (l) Notwithstanding any other provision of this section, an airport operator shall have separate and ultimate authority to regulate taxicab access to the airport and set access fees for taxicabs at the airport. (m) Nothing in this section, or Section 53075.51, 53075.52, or 53075.53 shall affect the authority of a jurisdiction to regulate taxi access to an airport it owns or operates and to set access fees or requirements. (n) This section shall become operative on January 1, 2019. (Amended (as added by Stats. 2017, Ch. 753, Sec. 3) by Stats. 2018, Ch. 472, Sec. 1. (AB 939) Effective January 1, 2019.) Item 10 Packet Page 215 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.51.&lawCode=GOV 1/1 Code:Select Code Section:Search TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) CHAPTER 1. General [53000 - 53170] ( Chapter 1 added by Stats. 1949, Ch. 81. ) 53075.51. Up^ << Previous Next >> cross-reference chaptered bills PDF | Add To My Favorites Search Phrase: Highlight GOVERNMENT CODE - GOV ARTICLE 4. Miscellaneous [53060 - 53087.8] ( Article 4 added by Stats. 1951, Ch. 522. ) (a) Any city or county, regardless of whether a taxicab company is substantially located within its jurisdiction as defined in Section 53075.5, may adopt, by ordinance, operating requirements for taxicab companies and taxicab drivers that do not relate to permitting or business licensing, including, but not limited to, all of the following: (1) Limits on the number of taxicab companies that may use taxi stand areas or pickup street hails within that city’s or county’s jurisdictional boundaries. If a city or county chooses to limit the number of taxis that use the stand areas or pick up street hails, the city or county shall identify those vehicles with a window sticker and shall not establish additional requirements or costs to the taxis beyond that authorized by Section 53075.5 or this section. (2) Requirements on a taxicab company to provide services in a manner that provides equal accessibility for all populations within the jurisdictional boundaries of the city or county. (3) Other public health, safety, or welfare ordinances relating to taxicabs. (b) Compliance with requirements adopted pursuant to subdivision (a) shall not be a condition for issuance of a permit. (c) A city or county may administratively impose civil liability for violation of ordinances adopted pursuant to this section. The minimum fine for violation of ordinances relative to this section shall be one hundred dollars ($100) and shall not exceed one thousand dollars ($1,000). Civil liability imposed pursuant to this section shall be paid to the city or county where the violation occurred and expended solely for the purposes of this chapter. (d) This section shall become operative on January 1, 2019. (Amended by Stats. 2018, Ch. 472, Sec. 2. (AB 939) Effective January 1, 2019.) Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Item 10 Packet Page 216 1/13/2020 Law section leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53075.52.&lawCode=GOV 1/1 Code:Select Code Section:Search TITLE 5. LOCAL AGENCIES [50001 - 57607] ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7] ( Part 1 added by Stats. 1949, Ch. 81. ) CHAPTER 1. General [53000 - 53170] ( Chapter 1 added by Stats. 1949, Ch. 81. ) 53075.52. Up^ << Previous Next >> cross-reference chaptered bills PDF | Add To My Favorites Search Phrase: Highlight GOVERNMENT CODE - GOV ARTICLE 4. Miscellaneous [53060 - 53087.8] ( Article 4 added by Stats. 1951, Ch. 522. ) Beginning January 1, 2018, taxicab companies shall collect data that demonstrates the total number of prearranged and nonprearranged trips that originate within a particular local jurisdiction for the purpose of determining where that taxicab company is substantially located, and shall provide that data to the city or county in which it is substantially located, consistent with paragraph (9) of subdivision (h) of Section 53075.5. Beginning January 1, 2019, the trip data collected in the previous 12 months shall be provided upon date of renewal to the city or county in which the taxicab company is substantially located. If a taxicab company changes from being substantially located in one city or county to another, the taxicab company shall notify the new city or county six months before making that change and shall comply with the requirements of subparagraph (B) of paragraph (5) of subdivision (k) of Section 53075.5. (Amended by Stats. 2018, Ch. 472, Sec. 3. (AB 939) Effective January 1, 2019.) Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Item 10 Packet Page 217 Page intentionally left blank. Item 10 Packet Page 218 Department Name: Finance Cost Center: 2005 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Esteban Cano-Gutierrez, Financial Analyst Natalie Harnett, Budget Analyst SUBJECT: FY 2018-19 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600 RECOMMENDATION 1.Review the 2018-19 Fiscal Year Report on Development Impact Fees in compliance with AB1600 annual disclosure requirements; and 2.Adopt a Resolution (Attachment A) accepting the report and making findings related to impact fee balances and in-lieu fees. DISCUSSION Background The City of San Luis Obispo (City) has an adopted development impact fee program that is subject to AB 1600 (the Mitigation Fee Act, Gov. Code §§ 66000 et seq.) and its annual disclosure and reporting requirements. This report (Attachment B) is developed to satisfy the required criteria by briefly describing each type of fee, identifying the amount of each fee collected, the disbursements made from each fee type, and the amount of interest apportioned to each fee balance during the 2018-19 fiscal year. In addition, an accompanying analysis has been prepared that reflects, for each fee type, the aging of the balance held by the City. As required by Gov. Code 66006(b), this report was made available for public inspection in the City Clerk’ s office and the Finance Department on December 30th, 2019. Notice of availability was published in the New Times and posted on the City’ s website on January 2, 2020. The individual fund schedules provide a breakdown of the fee balances on hand as of June 30, 2019, based on audited information. AB1600 requires that the annual report shall include the following information: (A)A brief description of the type of fee in the account or fund. (B)The amount of the fee. (C)The beginning and ending balance of the account or fund. (D)The amount of the fees collected, and the interest earned. Item 11 Packet Page 219 (E) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. (F) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. (G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001. The following is a brief description of the purpose of the fee and the nature of projects funded in the current year. The City of San Luis Obispo's Fee Areas Citywide Transportation Impact Fee This impact fee was established for the construction of multimodal transportation infrastructure within the City needed to support planned growth as adopted under the City's General Plan. There were twelve active projects funded by this fee during the most recent fiscal year. The following projects have impact fees associated to them: • Traffic Volume Counts • Prado Road Bridge Widening • Bicycle and Pedestrian Bridge at Phillips Lane over Railroad Tracks • Railroad Safety Trail Taft to Pepper and connecting to Phillips Lane Bridge (project above) • Los Osos Valley Road Interchange • California at Taft Intersection Improvements (installation of a roundabout) • Broad Street Corridor Improvements • Topographic Survey and Row Establishment • Orcutt Road at Tank Farm Intersection Improvements (installation of a roundabout) • Prado Interchange • Hydraulic Model Update to support Prado Interchange Design • Traffic Data Item 11 Packet Page 220 Margarita & Airport Specific Plans Transportation Impact Fee These two impact fees were established for the expansion of transportation facilities in and around the Margarita and Airport areas to support planned development in those specific plan areas. On April 3, 2018, the City Council adopted Resolution no. 10908 (2018 Series) in compliance with AB1600. As part of that approval, projects that were previously contained in the Airport and Margarita sub area fee programs were incorporated into the Citywide Transportation Impact Fee program which became effective July 1, 2018. For the Margarita Area, there remains a yet to be reimbursed interfund loan between the Park In Lieu program and the Citywide fee program. Orcutt Area Impact Fee This impact fee was established for the expansion of transportation and park facilities in and around the Orcutt area to support planned development in that specific plan area. The Orcutt Area Specific Plan (OASP) Public Facilities Financing Plan (PFFP) was amended on December 17, 2017, and again on October 16, 2018, to update costs to reflect current cost estimates and to revise the scope of certain capital improvement projects within the PFFP. Los Osos Valley Road Impact Fee This impact fee was established for the expansion of capacity for Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the interchange project has been completed there still remain minor projects that the City will need to implement at this location. The fee program was revised in 2019 to reflect the completion of the interchange construction work and these remaining projects. The City has an existing reimbursement agreement with Costco for improvements already constructed at the LOVR interchange, most notably the relocation of Calle Joaquin that still is an obligation of the impact fee fund. Parkland Development Fees This fee was established for the purpose of acquisition and development of community parks and existing park facilities intended for access and use by the entire City. Open Space Protection This fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects within the Airport Area Specific Plan area and will be added to the City's existing open space inventory. Water Impact Fee This fee was established for the expansion and improvement of facilities used for water supply, water treatment and water distribution. The fees are used for debt service for the following projects: 1. Nacimiento Pipeline 2. Water Reuse Project Loan 3. 2018/2006 Water Treatment Plan Refunding Debt Service 4. 2012 Water Refunding Debt Service Item 11 Packet Page 221 Sewer Impact Fee This impact fee was established for the expansion and improvement of facilities used for sewer collection and sewer treatment. The fees were used for the following projects: 1. Calle Joaquin Lift Station 2. Margarita Lift Station 3. Water Resource Recovery Facility (WRRF) Upgrade 4. Tank Farm Lift Station Public Safety Impact Fee This impact fee was established to cover the City of San Luis Obispo’s Police and Fire services, including but not limited to patrol services, 911-dispatch, a traffic safety unit, neighborhood services, records unit, investigations, fire administration, fire emergency response, prevention and education, training, technical services and disaster preparedness. The fee will be used to renovate Fire Stations 1, 2, 3, and 4 and construct Fire Station 5 and replace the fire vehicles and equipment needed to serve the City through General Plan buildout. Also, will be used to help construct a new police headquarters and purchase vehicles to maintain the existing ratio of police vehicles to service population. Policy Context As the City has an active development impact fee program, this report is an annual requirement under AB1600 which governs impact fee collection and disbursement. Public Engagement This report was made public on December 30th, 2019, so that interested parties can review the fee collection and applicable uses and disbursements during the fiscal year. CONCURRENCE The Public Works and Utilities Departments concur with the recommendations contained within 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: N/A Budget Year: 2019-20 Funding Identified: Yes Item 11 Packet Page 222 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total N/A N/A N/A The action before the City Council in itself does not have a fiscal impact. However, AB 1600 reports on the City’s impact fee collection, the use of the fees, and the status of projects for which the fee has been collected. It therefore summarizes the fiscal impact of the fees in advancing important infrastructure projects for the City. ALTERNATIVE Council could choose not to make the findings called for in this report. This is not recommended as it would require reimbursement of certain impact fees collected under the program and present a monetary shortfall for many of the development related improvements. Attachments: a - Draft Resolution b - Development Impact Fee Annual Report c - DIF Annual Report Exhibit A - Fee Amounts d - DIF Annual Report Exhibit B - Developers Fees Collected e - DIF Annual Report Exhibit C - Development Fees Distributed Item 11 Packet Page 223 R ______ RESOLUTION NO. ______ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2018-19 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES REAFFIRMING THE NECESSITY OF DEVELOPMENT IMPACT FEES AND MAKE FINDINGS OF DEVELOPMENT IMPACT FEES AND MAKE FINDINGS RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES WHEREAS, the City has an established Development Impact Fee program and collects applicable fees accordingly; and WHEREAS, the City of San Luis Obispo (“City”) is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. All of the above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Acceptance. The 2018-19 Annual Report on Development Impact Fees is hereby accepted. SECTION 3. Findings. The following findings are made as required under Government Code section 66001: 1. The purpose to which each Development Impact Fee is collected for has been identified. 2. There is a continued need for the improvements and that there is a reasonable relationship between the fee, the timing of the improvements, and the impacts for development for which the fees are collected. 3. The sources and amounts of funding anticipated to complete the financing of capital projects have been identified and will be deposited into the appropriate account upon receipt or during the normal capital improvement program budget cycle. Item 11 Packet Page 224 R ______ Resolution No. (2020 Series) Page 2 4. A copy of the approved resolution shall be forwarded to the Finance Director for use in overseeing these monies. SECTION 4. These findings are based, in part, on information provided in the City of San Luis Obispo’s 2019-21 Capital Improvement Plan. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2020. Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ___________ day of __________________________, 2020. Teresa Purrington City Clerk Item 11 Packet Page 225 City of San Luis Obispo AB 1600 Annual Report and Findings The City of San Luis Obispo has an adopted Development Fee program, governed under AB 1600 which is otherwise known as the Mitigation Fee Act and is codified in Government Code §§ 66000 et seq. The power to exact development impact fees arises from the city's police power to protect the public health, safety and welfare. (Cal. Const., Art. XI, § 7.) The police power allows a city to act in the interest of its citizenry and to enact and enforce ordinances and regulations that are not in conflict with state law. Charter cities have the additional power to regulate by virtue of their plenary authority with respect to municipal affairs. (Cal. Const., Art. XI, § 5.) When does AB 1600 Apply AB 1600 applies to all local agencies in the state, including all general law and charter cities. (Gov. Code § 66000(c).) However, AB 1600 does not apply to every fee or exaction collected by a local agency. AB 1600 only applies when a local agency imposes a fee on an applicant in connection with approval of a development project to defray all or a portion of the cost of public facilities related to the project. (Gov. Code § 66001.) "Public facilities" are defined to include public improvements, public services and community amenities. (Gov. Code § 66000(d).) Definition of Development Impact Fees A development impact fee is a monetary exaction other than a tax or special assessment that is charged by a local governmental agency to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project. (Gov. Code § 66000(b).) A development impact fee is not a tax or special assessment; by its definition, a fee is voluntary and must be reasonably related to the cost of the service provided by the local agency. If a development impact fee does not relate to the impact created by development or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax and must then be subject to a two-thirds voter approval. (Cal. Const., Art. XIII A, § 4.) Annual Accounting for Fees Funds collected for each capital facility or service shall be deposited in separate accounts and not commingled with any other funds for other impact fees. (Gov. Code § 66006(a).) While funds are accruing for individual capital facilities, the city must keep track of each fund and provide an annual report. (Gov. Code § 66006(b).) Annual Report This report is submitted to satisfy the requirements of AB 1600 and identifies the amount of each development impact fee collected, the disbursements made from each fee type and the amount of interest apportioned to each fee balance during the 2018-19 fiscal year. Accompanying the report is information specifically prepared to reflect each fee type and the aging of the balance held by the City. Per AB1600, each fee collected to mitigate a specific impact has to be spent within five years of collection. If the fee is held beyond this time frame due to specific circumstances or insufficient collection for the needed improvements, the City Council must make specific findings to continue holding the fees. Otherwise, the fees are subject to refund. As required by law, the development impact fee report has been available for public inspection prior to tonight’s meeting in the Finance Department. Notice was posted on the City Clerk’s bulletin board in front of City Hall on December 31,2019. Item 11 Packet Page 226 The schedules referred to above provide a breakdown of the individual fee balances on hand as of June 30, 2019 based on unaudited information. The Mitigation Fee Act requires that this report include the following information: 1. The amount of each fee. (Exhibit A) 2. The amount of developer fees disbursed on each project for the year just ended. (Exhibit B) 3. The amount of developer fees collected for the year just ended. (Exhibit C) 4. The amount of interest earned by the developer fees for the year just ended. 5. Any other income received that is related to the projects, if applicable. 6. The beginning and ending fund balance for each development fee account. 7. The total cost of projects undertaken during the last year and the percentage of the project cost paid out of developer fees. 8. The identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete. 9. The amount and purpose of all interfund transfers during the last year. 10. The following is a brief description of the purpose of the fee and the nature of projects funded in the current year. AB 1600 Fee – Fund Details Parkland Development Impact Fees (Fund 501) This impact fee was established for the purpose of acquisition and development of community parks and existing park facilities intended for access and use by the entire city. As of June 30, 2019, $3,436,996 in funds are available for projects and $253,599 of Parkland Development Impact Fees have been held longer than five years. This can be attributed to park impact fees collected for the park planned to be built within the Margarita Area Specific Plan (MASP). At this time, the land zoned for park space is still privately owned and the current owners are not interested in selling or developing the land. Therefore, the City has not spent the funds collected specifically for the development of the MASP park. The City still anticipates using the funds collected for the MASP park at the time the landowner decides to sell or develop. Open Space Protection Impact Fees (Fund 502) This impact fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects within the Airport Area Specific Plan (AASP) and will be added to the City’s existing open space inventory. In fiscal year 2018-19, no impact fees were collected Item 11 Packet Page 227 associated with the AASP and no balance attributed to impact fees is held in the Open Space Protection Fund. Citywide Transportation Impact Fee (Fund 507) This impact fee was established for the expansion of transportation facilities and travel lanes within the City. There were twelve active projects funded by this fee during the most recent fiscal year. • TRAFFIC VOLUME COUNTS: $4,635 was expended during the 2018-19 fiscal year for the project. • PRADO RD BRIDGE WIDEN: $125,216 was expended during the 2018-19 fiscal year for the project. • BIKE BRIDGE/PHILLIPS: $17,514 was expended during the 2018-19 fiscal year for the project. • RR SAFETY TRL TAFT/PEPPER: $181,849 was expended during the 2018-19 fiscal year for the project. • LOVR INTERCHANGE LDP: $345,288 was expended during the 2018-19 fiscal year for the project. • CALIFORNIA TAFT ROUNDABOUT: $1,089 was expended during the 2018-19 fiscal year for the project. • BROAD CORRIDOR IMPPROVMENT: $27,656 was expended during the 2018-19 fiscal year for the project. • TOPOGRAPHIC SURVEY AND ROW ESTABLISHMENT: $10,598 was expended during the 2018-19 fiscal year for the project. • DN-ORCUTT & TANK ROUNDABOUT: $208,423 was expended during the 2018-19 fiscal year for the project. • PRADO RD INTERCHANGE: $245,945 was expended during the 2018-19 fiscal year for the project. • WRRF HYRDRAULIC MODEL UPDATE: $21,853 was expended during the 2018-19 fiscal year for the project. • TRAFFIC DATA: $60,045 was expended during the 2018-19 fiscal year for the project. As of June 30, 2019, $7,739,192 in funds were available for projects and $382,435 were held longer than five years. The $382,435 of funds held for longer than five years are programmed for planning, design, and construction of the Prado Road Interchange which will be built to mitigate impacts of planned growth. These funds have not yet been expended because collected fees have not yet accumulated to a sufficient level and project planning & design is currently 25% complete. The table below is the adopted funding plan for the interchange project, which identifies the estimated project cost and additional funds needed aside from the fee program. Project costs were developed based on preliminary construction cost estimates prepared as part of the Prado Interchange Project Study Report (PSR), approved April 2018. As more detailed project designs are completed, project costs and funding plans will be refined as needed as this project nears construction. All funds are anticipated to be collected and construction initiated by FY2021-22 as adopted in the City's Capital Improvement Program. Item 11 Packet Page 228 TABLE 1 Airport Area Impact Fees (Fund 503) This impact fee was established for the expansion of transportation facilities in and around the airport area. The only project funded during the fiscal year from these fees was the Airport Area Specific Plan (AASP) design services. On April 3, 2018, the City Council adopted a resolution in compliance with AB1600 that consolidated this fee program into the Citywide Transportation Impact Fee Program. As of June 30, 2019, $,1,126,341 in funds were available for projects and $918,189 in Airport Area Impact Fees have been held longer than five years The funds held for longer than five years are also part of the planned Prado Road Interchange which is for the purpose of mitigating impacts of planned growth in this area. All funds are anticipated to be collected and construction initiated by 2021 as adopted in the City’s Item 11 Packet Page 229 Capital Improvement Program. See TABLE 1 under the Citywide Transportation Impact Fee Section for more detail. Los Osos Valley Road Impact Fee (Fund 504) This impact fee was established for the expansion of capacity for Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the Fund recorded a liability for the reimbursement owed for an amount equal to the impact fees collected for the year. The City has an existing reimbursement agreement with Costco for improvements already constructed at the LOVR interchange. As of June 30, 2019, $684,707 in funds were available. Water Impact Fees (Fund 601) This fee was established for the expansion and improvement of facilities used for water supply, water treatment and water distribution. The fees are used for debt service for the following projects: 1. Nacimiento Pipeline 2. Water Reuse Project Loan 3. 2018/2006 Water Treatment Plant Refunding Debt Service 4. 2012 Water Refunding Debt Service Fees collected and retained were used for debt service to pay for new development’s fair share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the City from Nacimiento Lake. In fiscal year 2018-19, $3,745,666 was collected in impact fees, while $8,671,627 was expended. No funds were held longer than five years as payments cover debt service expenses upon receipt. Item 11 Packet Page 230 Sewer Impact Fees (Fund 506 & 602) This impact fee was established for the expansion and improvement of facilities used for sewer collection and sewer treatment. The fees were used for the following projects: 1. Calle Joaquin Lift Station 2. Margarita Lift Station 3. Water Resource Recovery Facility (WRRF) Upgrade 4. Tank Farm Lift Station As of June 30, 2019, available funds are ($3,588,227). As future development occurs, and, in turn, future impact fees are collected, more funds will become available to fund the projects and offset the negative fund balance. The negative fund balance represents the fact that improvements were needed for the orderly development of the City that could not wait for development to occur. The negative balance will adjust with future impact fee payments. No funds were held longer than five years. Affordable Housing Inclusionary Fees (Fund 505) This inclusionary fee was established for funding of affordable housing inclusionary programs in the City and is not an impact fee as defined by AB 1600. There were three expenditures for the fiscal year in this account. One for Lot 18 Serra Meadows in the amount of $630,000, one for The SLO County Housing Authority in the amount of $80,000 and $17,000 was transferred into the General Fund to help fund a Housing Coordinator position. As of June 30, 2019, $2,985,470 in funds were available for affordable housing projects and no funds were held longer than five years. Item 11 Packet Page 231 Public Safety Impact Fees (Fund 508) This impact fee was established as part of the 2018 fee study to help cover the cost of the City’s Police and Fire services. It will also be used to renovate and maintain public safety assets. Fiscal Year 2018 -19 was the first year that the fee was collected As of June 30, 2019, $18,600 in funds were available for public safety projects and no funds were held longer than five years. Conclusion The City will continue to closely monitor its impact fee collection to report the use and retention of the fees in compliance with AB 1600. Finding on retained fund balances over five year will be integrated in the report, so the City Council can approve appropriate action on an annual basis. Item 11 Packet Page 232 Who pays development impact fees? • Any new residential & non-residential development • Additions and expansions to existing non-residential development • Additions and expansions to residential developments that paid discounted impact fees • Additions, expansions and remodels that result in a change of land use How are the fees used? Development impact fees pay for a variety of projects and services within the City of San Luis Obispo. They ensure our emergency services have funding, and keep infrastructure and facilities maintained. Transportation Impact Fees fund projects for multi-modal transportation such as the Los Osos Valley Road/Highway 101 and Prado Road/Hwy 101 interchanges, intersection improvements, street widening, pedestrian and bicycle improvements, and transit improvements. Parkland and Park & Recreation Impact Fees help acquire new land for parks and recreational facilities, and improvements to existing parks and recreational facilities such as the expansion of Cheng Park and the Ludwick Center and improvements to Emerson Park, Sinsheimer Park/Sports Complex, Laguna Lake Park, Mission Plaza, the Senior Center, to name a few. Police Impact Fees will pay for construction of a new Police Department Headquarters and purchase new vehicles to maintain current patrol service level standards as the City grows. Fire Impact Fees will pay for the renovation of Fire Stations 1, 2, 3, and 4 and for the construction of the new Fire Station 5. They also fund the replacement of fire vehicles and equipment needed to serve our City. Water & Wastewater Development Impact Fees go to construction projects and infrastructure to ensure the City has the necessary supply and capacity to serve the people who live here. Land Use Category Transportation (Citywide)1 Transportation (San Luis Ranch Subarea)1 Transportation (LOVR Subarea)1 Parkland In-Lieu (Citywide, except San Luis Ranch Subarea)3 Park Development (Citywide, except San Luis Ranch Subarea)3 Police (Citywide) Fire (Citywide) Fee with Administrative Charge4 RESIDENTIAL Single Family (per dwelling unit) ≥1,400 sq. ft. (fees are per unit)$9,828.00 $7,623.00 $8,861.00 $3,151.00 $2,880.00 $668.00 $569.00 Requires Calculation700–1,399 sq. ft. (fees are per sq. ft.)$7.02 $5.44 $6.33 $3,151.00 $2,880.00 $668.00 $569.00 ≤699 sq. ft. (fees are per unit)$4,914.00 $3,811.00 $4,430.00 $3,151.00 $2,880.00 $668.00 $569.00 Multifamily Condominium (per dwelling unit) ≥1,100 sq. ft. (fees are per unit)$7,636.00 $5,922.00 $6,884.00 $2,269.00 $2,074.00 $481.00 $410.00 Requires Calculation550–1,099 sq. ft. (fees are per sq. ft.)$6.94 $5.38 $6.26 $2,269.00 $2,074.00 $481.00 $410.00 ≤549 sq. ft. (fees are per unit)$3,818.00 $2,961.00 $3,442.00 $2,269.00 $2,074.00 $481.00 $410.00 Multifamily Apartment (per dwelling unit) ≥1,100 sq. ft. (fees are per unit)$7,636.00 $5,922.00 $6,884.00 $1,457.00 $2,074.00 $481.00 $410.00 Requires Calculation550–1,099 sq. ft. (fees are per sq. ft.)$6.94 $5.38 $6.26 $1,457.00 $2,074.00 $481.00 $410.00 ≤549 sq. ft. (fees are per unit)$3,818.00 $2,961.00 $3,442.00 $1,457.00 $2,074.00 $481.00 $410.00 NON-RESIDENTIAL Office (fees are per sq. ft.)$9.47 $7.36 $8.55 N/A N/A $0.44 $0.38 Requires Calculation Service (fees are per sq. ft.)$9.47 $7.36 $8.55 N/A N/A $0.24 $0.21 Retail (fees are per sq. ft.)$13.75 $10.69 $12.42 N/A N/A $0.24 $0.21 Industrial (fees are per sq. ft.)$5.82 $4.52 $5.25 N/A N/A $0.18 $0.15 Institutional (fees are per sq. ft.)$11.14 $8.66 $10.06 N/A N/A $0.24 $0.21 Lodging (fees are per room)$3,958.00 $3,075.00 $3,575.00 N/A N/A $133.00 $113.00 Specialty (fees are per ADT)2 $605.20 $469.38 $545.63 N/A N/A Requires Calculation Requires Calculation Land Use Category Water Development Impact Fee (Citywide) Wastewater Development Impact Fee (Citywide) RESIDENTIAL Single Family & Multifamily (per dwelling unit size) ≥1,201 sq. ft. (fees are per unit)$11,872.00 $10,721.00 801–1,200 sq. ft. (fees are per unit)$9,497.60 $8,577.00 451–800 sq. ft. (fees are per unit)$8,310.40 $7,505.00 ≤450 sq. ft. (fees are per unit)$3,561.60 $3,216.00 Mobile/Manufactured Home (per dwelling unit) Mobile/Manufactured Home $7,123.20 $6,433.00 Land Use Category Water Development Impact Fee (Citywide) Wastewater Development Impact Fee (Citywide) NON-RESIDENTIAL (BY METER SIZE) ¾" meter $11,872.00 $10,721.00 1" meter $20,182.00 $18,226.00 1.5" meter $40,365.00 $36,451.00 2" meter $64,109.00 $57,893.00 3" meter $127,030.00 $114,715.00 4" meter $198,262.00 $179,041.00 6" meter $396,525.00 $358,081.00 Capital Facilities Fee Schedule, Effective July 1, 2018* Water & Wastewater Development Impact Fee Schedule, Effective July 1, 2018* (*) The City's development impact fees are subject to annual increases. (1) The transportation fees are applied based on three geographic areas within the City (Citywide, San Luis Ranch and Los Osos Valley Road subareas) (2) The Average Cost per Average Daily Trip (ADT) rate may be applied to non-residential development uses that are not identified in the land use category, but are identified in the City of San Luis Obispo Parcel Data SIC Correspondence table. (3) Fees shown reflect Parkland In-lieu Fees authorized by the Quimby Act (single family residential uses only) and Park Development Impact Fees authorized by the Mitigation Fee Act (single family and multifamily residential uses). Development in the MASP, OASP, Avila Ranch or San Luis Ranch areas will meet park and recreation obligations per the terms of applicable Specific Plans and/or Development Agreements. (4) Fees shown are subject to an additional 1.75% administrative charge. COMMUNITY DEVELOPMENT DEPARTMENTDevelopment Impact Fees Item 11 Packet Page 233 City of San Luis Obispo Development Impact Fee Compliance 2019 Parkland Impact Fee Fund 501 Fiscal Year Beginning Balance Impact Fees Interest ** Non AB 1600 Interest Revenue Other Agencies Other Revenue Transfers In AB 1600 Expenses Developer Reimb AB 1600 Transfers Out Total Ending Balance 2007-08 200,679$ 861,834 38,135 - - - - 84,326 - - 1,016,322$ 2008-09 1,016,322$ 176,579 54,896 - 94,781 - - 22,705 - - 1,319,873$ 2009-10 1,319,873$ 36,378 41,787 - - - - 66,981 - - 1,331,057$ 2010-11 1,331,057$ 35,805 23,628 - 25,583 - - 169,411 - - 1,246,662$ 2011-12 1,246,662$ 40,135 19,130 - - - - 214,309 - - 1,091,618$ 2012-13 1,091,618$ 152,217 318 - - - - 11,746 - - 1,232,407$ 2013-14 1,232,407$ 97,535 9,500 - - - - 173,120 - - 1,166,322$ 2014-15 1,166,322$ 273,647 3,110 - - - - 822,521 - - 620,558$ 2015-16 620,558$ 217,069 5,756 - - - - 1,572 - - 841,811$ 2016-17 841,811$ 505,886 16,450 - - - 900,000 4,142 - - 2,260,005$ 2017-18 2,260,005$ 456,140 28,088 - - (1,590) - 217,193 - 160,000 2,365,450$ 2018-19 2,365,450$ 1,653,597 23,655 - - - - 32,287 573,419 - 3,436,996$ Aging of Funds Held Current Yr Funds FY 2018-19 1 yr old Funds FY 2017-18 2 yr old Funds FY 2016-17 3 yr old Funds FY 2015-16 4 yr old Funds FY 2014-15 Funds attributed to recent 5 years If Number is Positive, then Funds subject to findings or refund Total Ending Balance 1,677,252$ 484,228$ 522,336$ 222,825$ 276,757$ 3,183,397$ 253,599$ 3,436,996$ ** Interest for FY19 is an estimate. Interest allocations have not yet been posted Item 11 Packet Page 234 Orcutt Area Park Improvement Impact Fees (Fund 501) Fiscal Year Beginning Balance Impact Fees Interest ** Non AB 1600 Interest Revenue Other Agencies Other Revenue Transfers In AB 1600 Expenses Developer Reimb AB 1600 Transfers Out Total Ending Balance 2018-19 -$ 775,701 - - - - - - - - 775,701$ Aging of Funds Held Current Yr Funds FY 2018-19 1 yr old Funds FY 2017-18 2 yr old Funds FY 2016-17 3 yr old Funds FY 2015-16 4 yr old Funds FY 2014-15 Funds attributed to recent 5 years If Number is Positive, then Funds subject to findings or refund Total Ending Balance 775,701$ -$ -$ -$ -$ 775,701$ -$ 775,701$ Orcutt Area Parkland Acquisition Impact Fees (Fund 501) Fiscal Year Beginning Balance Impact Fees Interest ** Non AB 1600 Interest Revenue Other Agencies Other Revenue Transfers In AB 1600 Expenses Developer Reimb AB 1600 Transfers Out Total Ending Balance 2018-19 -$ 598,022 - - - - - - 573,419 - 24,603$ Aging of Funds Held Current Yr Funds FY 2018-19 1 yr old Funds FY 2017-18 2 yr old Funds FY 2016-17 3 yr old Funds FY 2015-16 4 yr old Funds FY 2014-15 Funds attributed to recent 5 years If Number is Positive, then Funds subject to findings or refund Total Ending Balance 598,022$ -$ -$ -$ -$ 598,022$ (573,419)$ 24,603$ Item 11 Packet Page 235 City of San Luis ObispoDevelopment Impact Fee Compliance 2019Open Space Impact FeeFund 502Fiscal Year Beginning Balance Impact Fees Interest **Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InImpact Fee ExpendituresOther ExpensesAB 1600 Transfers Out Total Ending Balance 2007-0881,559$ - 11,997 - - - 323,000 22,772 - 5,000 388,784$ 2008-09 388,784$ - 16,221 - 6,436 100 234,000 383,991 - - 261,550$ 2009-10 261,550$ - 12,706 - 314,824 10,500 260,378 370,498 - - 489,460$ 2010-11 489,460$ - (807) - 186,809 153 - 560,516 - - 115,099$ 2011-12 115,099$ - 3,336 - - - 305,000 240,069 - - 183,366$ 2012-13 183,366$ - (1) - - - 22,500 11,566 - - 194,299$ 2013-14 194,299$ 20,981 4,560 - 50,205 - 200,000 - 58,452 - 411,593$ 2014-15411,593$ - 2,289 - - - 275,000 38,258 - 35,000 530,623$ 2015-16 530,623$ 47,369 4,101 - - - - 32,743 - - 549,350$ 2016-17 549,350$ 7,419 4,697 - 63,351 - - 36,074 - - 588,743$ 2017-18 588,743$ - 7,442 - - (512) - - - - 595,673$ 2018-19 595,673$ - 5,957 - 100,059 - - 21,140$ - - 680,549$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance5,957$ 7,442$ 12,116$ 51,470$ 2,289$ 79,274$ 601,275$ 680,549$ Balances from Transfers (5 Years)275,000$ Balances from Other Revenues (5 years)162,897$ Balances attributed to Impact Fees-$ 437,897$ **Interest for FY19 is an estimate. Interest allocations have not yet been postedItem 11Packet Page 236 City of San Luis ObispoDevelopment Impact Fee Compliance 2019Airport Area Impact FeeFund 503 Fiscal Year Beginning Balance Impact Fees Interest **Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2008-09 966,198$ - 48,509 - - - - 20,991 - - 993,716$ 2009-10 993,716$ 3,599 31,393 - - - - - - - 1,028,708$ 2010-11 1,028,708$ - 19,147 - - - - 19,383 - - 1,028,472$ 2011-12 1,028,472$ 11,280 16,993 - - - - 35,173 - - 1,021,572$ 2012-13 1,021,572$ 134,210 8,248 - - - - 317,712 - - 846,318$ 2013-14 846,318$ 255,011 3,668 - - - - 9,845 - - 1,095,152$ 2014-15 1,095,152$ - 4,344 - - - - 23,487 - - 937,498$ 2015-16937,498$ 134,210 8,248 - - - - - - - 1,079,956$ 2016-17 1,079,956$ 24,437 9,577 - - - - 5,000 - - 1,108,970$ 2017-18 1,108,970$ - 14,019 - - (973) - - - - 1,122,016$ 2018-19 1,122,016$ 2,097 11,220 - - - - 8,992 - - 1,126,341$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance13,317$ 14,019$ 34,014$ 142,458$ 4,344$ 208,152$ 918,189$ 1,126,341$ **Interest for FY19 is an estimate. Interest allocations have not yet been posted.Item 11Packet Page 237 City of San Luis ObispoDevelopment Impact Fee Compliance 2019Los Osos Valley Road Impact FeeFund 504 Fiscal Year Beginning Balance Impact Fees Interest **Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2008-09 282,240$ - 48,311 - - - - 229,058 8,875 - 92,618$ 2009-1092,618$ 79,719 15,084 - - - - - 4,043 - 183,378$ 2010-11 183,378$ 11,166 8,599 - - - - - 18,963 - 184,180$ 2011-12 184,180$ 1,797,650 18,233 - - - - 1,622,651 1,576 375,836$ 2012-13 375,836$ - 1,166 - - - - 49,577 179,809 - 147,616$ 2013-14 147,616$ 3,097 7,573 - - - - 9,979 3,097 - 145,210$ 2014-15 145,210$ - 1,514 - - - - - - - 146,724$ 2015-16 146,724$ 14,661 2,585 - - - - - - - 163,970$ 2016-17 163,970$ 422,858 5,946 - - - - 40,482 423,344 - 128,948$ 2017-18 128,948$ - 3,577 - - (291) - 34,518 - - 97,716$ 2018-1997,716$ 586,014 977 - - - - - - 684,707$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance586,991$ 3,577$ 428,804$ 17,246$ 1,514$ 1,038,132$ (353,425)$ 684,707$ **Interest for FY19 is an estimate. Interest allocations have not yet been postedItem 11Packet Page 238 City of San Luis ObispoDevelopment Impact Fee Compliance 2019Affordable Housing Inclusionary Impact FeeFund 505Fiscal Year Beginning Balance Impact Fees Interest **Non AB 1600 InterestRevenue Other Agencies Other Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2007-08 3,811,662$ 682,418 155,631 - - - - 630,000 - - 4,019,711$ 2008-09 4,019,711$ 465,726 199,625 - - 1,450 - 892,462 - - 3,794,050$ 2009-10 3,794,050$ - 32,584 - 270,000 9,000 - 3,416,692 21,286 - 667,656$ 2010-11 667,656$ 332,841 15,988 - 30,000 3,929 - 39,854 - - 1,010,560$ 2011-12 1,010,560$ 848,788 21,915 - - - - 112,696 - - 1,768,567$ 2012-13 1,768,567$ 182,685 7,417 - - - - 30,000 - - 1,928,669$ 2013-14 1,928,669$ 793,655 52,712 - - - - 30,000 - 17,000 2,728,036$ 2014-15 2,728,036$ 159,602 12,882 - - 179,552 - 697,000 - 17,000 2,366,072$ 2015-16 2,366,072$ 625,506 34,414 - - - - 698,978 - - 2,562,826$ 2016-17 2,562,826$ 1,130,587 5,246 - - 359,081 - 1,490,738 - - 2,567,002$ 2017-18 2,567,002$ 357,581 9,056 - 75,177 87,422 - 850,000 - - 2,482,050$ 2,246,238$ 2018-19 2,482,050$ 1,193,099 24,820 - - 12,500 - 710,000 - 17,000 2,985,470$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance1,217,920$ 366,637$ 1,135,833$ 659,920$ 172,484$ 3,552,794$ (567,324)$ 2,985,470$ ** Interest for FY19 is an estimate. Interest allocations have not yet been postedItem 11Packet Page 239 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Sewer Impact FeeFund 506 & 602Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other Agencies Other Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2008-09 1,229,684$ 171,000 4,919 - - - - 528,164 49,055 - 926,494$ 2009-10926,494$ 98,600 3,063 - - - - 854,235 3,733 - 177,655$ 2010-11177,655$ 169,800 2,632 - - - - 849,584 14,956 - (484,541)$ 2011-12 (484,541)$ 141,237 1,990 - - - - 655,355- - (996,669)$ 2012-13 (996,669)$ 355,395 - - - - - 1,308,687 9,430 - (1,959,391)$ 2013-14 (1,959,391)$ 268,132 2,934 - - - - 608,432 - - (2,296,757)$ 2014-15 (2,296,757)$ 1,160,654 1,092 - - - - 1,393,810 - - (2,528,821)$ 2015-16 (2,528,821)$ 674,831 7,056 - - - - 700,632 - - (2,547,566)$ 2016-17 (2,547,566)$ 653,821 11,232- - - - 700,632 - - (2,583,145)$ 2017-18 (2,583,145)$ 811,229 - - (22,861) - 1,197,917 - - (2,992,694)$ 2018-19 (2,992,694)$ 2,028,174 -$ - - - - 2,623,707 - - (3,588,227)$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance2,028,174$ 811,229$ 665,053$ 681,887$ 1,161,746$ 5,348,089$ (8,936,316)$ (3,588,227)$ Item 11Packet Page 240 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Transportation Impact FeeFund 507Fiscal Year Beginning Balance Impact Fees Interest**Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesOther ExpensesAB 1600 Transfers Out Total Ending Balance 2008-09 4,057,425$ 498,385 197,387 - 668,853 - - 1,829,260 - - 3,592,790$ 2009-10 3,592,790$ 30,237 107,553 - 399,911 87,221 74,000 864,670 28,700 - 3,398,342$ 2010-11 3,398,342$ 860,530 72,051 - 647,364 - - 671,057 86,100 - 4,221,130$ 2011-12 4,221,130$ 274,470 66,373 - 212,085 (481,252) - 376,931 404,030 - 3,511,844$ 2012-13 3,511,844$ 221,213 3,044 - 1,059,704 - - 974,689 777,319 - 3,043,797$ 2013-14 3,043,797$ 1,002,592 28,352 - 282,208 - - 408,460 301,140 - 3,647,349$ 2014-15 3,647,349$ 898,574 48,584 - 350,172 63,791 7,873,360 1,077,990 2,918,542 - 8,885,296$ 2015-16 8,885,296$ 1,356,158 107,807 - - - - 381,535 3,422,400 320,000 6,225,326$ 2016-17 6,225,326$ 1,615,385 (7,641) - - - - 172,719 97,548 - 7,562,803$ 2017-18 7,562,803$ 1,230,254 4,771 - - (6,208) - 945,980 711,169 250,000 6,884,471$ 2018-19 6,844,471$ 2,034,421 68,445 - - 41,966 - 1,250,110 - - 7,739,192$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance2,102,866$ 1,235,025$ 1,607,744$ 1,463,965$ 947,157$ 7,356,757$ 382,435$ 7,739,192$ ** Interest for FY19 is an estimate. Interest allocations have not yet been posted.Item 11Packet Page 241 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Transportation Impact FeeMargarita Area TIF FeeFiscal Year Beginning Balance Impact Fees Interest**Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 Expenses 405405AB 1600 Transfers Out Total Ending Balance 2011-12-$ - - - - - - - - - -$ 2012-13-$ - - - - - - - - - -$ 2013-14-$ - - - - - - - - - -$ 2014-15-$ - - - - - - - - - -$ 2015-16-$ 43,215 3,435 - - - - - - - 46,650$ 2016-1746,650$ 417,347 (1,974) - - - - - - - 462,023$ 2017-18 462,023$ 514,776 1,996.50 - - - - - - - 978,796$ 2018-19 978,795.75$ 416,805 14,022.70 - - - - - - - 1,409,623$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance430,827$ 516,772$ 415,373$ 46,650$ -$ 1,409,623$ -$ 1,409,623$ ** Interest for FY19 is an estimate. Interest allocations have not yet been posted.Item 11Packet Page 242 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Transportation Impact FeeOrcutt Area TIF FeeFiscal Year Beginning Balance Impact FeesInterest**Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesOther ExpensesAB 1600 Transfers Out Total Ending Balance 2012-13-$ $ 3,457 48$ - - - - - - - 3,505$ 2013-143,505$ - - - - - - - - - 3,505$ 2014-153,505$ - - - - - - - - - 3,505$ 2015-163,505$ 5,499 437 - - - - - - - 9,441$ 2016-179,441$ - - - - - - - - - 9,441$ 2017-189,441$ 12,394 48 - - - - 46,668 - - (24,785)$ 2018-19 (24,785.07)$ 387,080 - - - - - 208,422.65 - - 153,872$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance387,080$ 12,442$ -$ 5,936$ -$ 405,458$ (251,586)$ 153,872$ ** Interest for FY19 is an estimate. Interest allocations have not yet been posted.Item 11Packet Page 243 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Transportation Impact FeeTransporation Impact Fee (Citywide)Fiscal Year Beginning Balance Impact FeesInterest**Non AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesOther ExpensesAB 1600 Transfers Out Total Ending Balance 2008-09 4,057,425$ 498,385 197,387 - 668,853 - - 1,829,260 - - 3,592,790$ 2009-10 3,592,790$ 30,237 107,553 - 399,911 87,221 74,000 864,670 28,700 - 3,398,342$ 2010-11 3,398,342$ 860,530 72,051 - 647,364 - - 671,057 86,100 - 4,221,130$ 2011-12 4,221,130$ 274,470 66,373 - 212,085 (481,252) - 376,931 404,030 - 3,511,844$ 2012-13 3,511,844$ 217,756 2,996 - 1,059,704 - - 974,689 777,319 - 3,040,292$ 2013-14 3,040,292$ 1,002,592 28,352 - 282,208 - - 408,460 301,140 - 3,643,844$ 2014-15 3,643,844$ 898,574 48,584 - 350,172 63,791 7,873,360 1,077,990 2,918,542 - 8,881,791$ 2015-16 8,881,791$ 1,307,444 103,935 - -- - 381,535 3,422,400 320,000 6,169,235$ 2016-17 6,169,235$ 1,198,038 (5,667) - -- - 172,719 97,548 - 7,091,339$ 2017-18 7,091,339$ 703,084 2,727 - -(6,208) - 899,312 711,169 250,000 5,930,460$ 2018-19 5,890,460$ 1,230,536 54,422 - - 41,966 - 1,041,687 - - 6,175,697$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance1,284,958$ 705,811 1,192,371 1,411,379 947,157 5,541,676 634,021$ 6,175,697$ ** Interest for FY19 is an estimate. Interest allocations have not yet been posted.Item 11Packet Page 244 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Public Safety Impact FeeFund 508 Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2018-19-$ 18,600 - - - - - 0- - 18,600$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance18,600$ -$ -$ -$ -$ 18,600$ -$ 18,600$ Item 11Packet Page 245 City of San Luis ObispoDeveloper Impact Fee Compliance 2019Water Impact FeeFund 601 Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers Out Total Ending Balance 2008-09 4,426,570$ 663,000 40,922 - - - - 895,190 122,259 - 4,357,561$ 2009-10 4,357,561$ 448,200 21,717 - - - - 970,096 14,918 - 3,872,300$ 2010-11 3,872,300$ 639,600 15,322 - - - - 803,305 59,772 - 3,783,689$ 2011-12 3,783,689$ 643,160 12,999 - - - - 703,006- - 3,736,842$ 2012-13 3,736,842$ 1,625,113 26,300 - - - - 3,906,320 41,330 - 1,523,265$ 2013-14 1,523,265$ 819,477 5,650 - - - - 2,865,321 - - (516,929)$ 2014-15 (516,929)$ 2,471,502 1,972 - - - - 280,830- - 1,675,715$ 2015-16 1,675,715$ 1,542,268 - - - - - 2,572,741- - 645,242$ 2016-17645,242$ 1,266,674 15,200 - - - - 2,605,220- - (678,104)$ 2017-18 (678,104)$ 2,131,345 - - - (17,875) - 2,947,684 - - (1,512,317)$ 2018-19 (1,512,317)$ 3,745,666 - - - - 8,671,627 - - (6,438,278)$ Aging of Funds HeldCurrent Yr Funds FY 2018-191 yr old Funds FY 2017-182 yr old Funds FY 2016-173 yr old Funds FY 2015-164 yr old Funds FY 2014-15Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance3,745,666 2,131,345 1,281,874 1,542,268 2,473,474 11,174,628 (17,612,905)$ (6,438,278)$ Item 11Packet Page 246 City of San Luis Obispo Summary of Local Agency Improvement Fee Expenditures (AB 1600 Development Impact Fees) Report for Fiscal Year Ended June 30, 2019 Parkland Impact Fee (Fund 501) Enacted using the Quimby Act. See note below. Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income 91563 PICKLE BALL COURTS 156$ 100%156$ -$ 91564 SINSHEIMER TENNIS CT L 17,301$ 100%17,301$ -$ 91683 NORTH BROAD ST PARK 14,985$ 100%14,985$ -$ Totals 32,442$ 32,442$ -$ 1,653,597$ 23,655$ -$ Available Funds as of June 30, 2018 2,365,450$ Available Funds as of June 30, 2019 3,436,996$ Fees and Interest Collected in Prior 5 Years 3,183,397$ Funds held Longer Than 5 Years 253,599$ Note: Quimby Act Fees are required to be reported on the AB1600 Report. However, some of the legal restrictions from Gov't Code Section 66000 may not apply. Item 11 Packet Page 247 Orcutt Area Park Improvement Impact Fees (Fund 501) Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income -$ -$ -$ Totals -$ -$ -$ 775,701$ Available Funds as of June 30, 2018 -$ Available Funds as of June 30, 2019 775,701$ Fees and Interest Collected in Prior 5 Years 775,701$ Funds held Longer Than 5 Years -$ Orcutt Area Parkland Acquisition Impact Fees (Fund 501) Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income -$ -$ -$ Totals -$ 573,419$ -$ 598,022$ Available Funds as of June 30, 2018 -$ Available Funds as of June 30, 2019 24,603$ Fees and Interest Collected in Prior 5 Years 598,022$ Funds held Longer Than 5 Years -$ Item 11 Packet Page 248 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Open Space Impact Fee (Fund 502)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Impact Fees CollectedImpact Fee Interest Income Other Income91112 FROOM RANCH IMPROVEMENT 15,773$ 100%15,773$ -$ 99837 OPEN SPACE PROTECTION5,368$ 100%5,368$ -$ Totals 21,140$ 21,140$ -$ -$ 5,957$ -$ Available Funds as of June 30, 2018 595,673$ Available Funds as of June 30, 2019 680,549$ Fees and Interest Collected in Prior 5 years 79,274$ Funds Held Longer Than 5 Years -$ ****Note: $688,102 funds accumulated in Fund 430 for the last 6 years thru 6/30/19 stem from revenues other than impact fee fundsItem 11Packet Page 249 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Airport Area Impact Fee (Fund 503)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Impact Fees CollectedImpact Fee Interest Income91252 PRADO ROAD BRIDGE 8,992$ 100% 8,992$ -$ -$ -$ Totals 8,992$ 8,992$ -$ 2,097$ 11,220$ Available Funds as of June 30, 20181,122,016$ Available Funds as of June 30, 20191,126,341$ Funds Collected in recent year and prior 5 years208,152$ Funds Held Longer than 5 Years918,189$ Item 11Packet Page 250 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Los Osos Valley Road Impact Fee (Fund 504 Formerly Fund 460)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresDeveloper ReimbursementsDeveloper Impact Fees CollectedImpact Fee Interest IncomeOther Income99821 LOVR HWW 101 INTERCHANGE -$ 100%- - - Totals -$ -$ -$ 586,014$ 977$ Available Funds as of June 30, 2018 97,716$ Available Funds as of June 30, 2019 684,707$ Fees collected in recent year and prior 5 years 1,038,132$ Funds Held Longer than 5 Years (353,425)$ Item 11Packet Page 251 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Affordable Housing Inclusionary Impact Fee (Fund 505)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Fees CollectedImpact Fee Interest Income Other Income1000125LOT 108 - SERRA MEADOWS 630,000$ 100%630,000$ -$ 90496 SLO COUNTY HOUSING80,000$ 100%80,000$ -$ Totals 710,000$ 710,000$ -$ 1,193,099$ 11,931$ Available Funds as of June 30, 2018 2,482,050$ Available Funds as of June 30, 2019 2,985,470$ Fees and Interest Collected in Prior 5 Years 3,552,794$ Fees Held Longer Than 5 Years (567,324)$ Item 11Packet Page 252 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Sewer Impact Fee (Fund 506 & 602)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresDeveloper ReimbDeveloper Fees CollectedImpact Fee Interest IncomeOther Income91118 CALLE JOAQUIN LIFT STATION 20,453$ 28.0% 5,727$ -$ 66,112$ 91214 MARGARITA LIFT STATION 1,226,871$ 51.0% 625,704$ -$ -$ SILVER CITY -$ 0.0%-$ -$ 40,032$ LAGUNA LIFT STATION-$ 0.0%-$ -$ -$ 91219 WRRF UPGRADE618,177$ 20.5% 126,726$ -$ 89351 TANK FARM LIFT STATION 758,207$ 58.0% 439,760$ -$ 332,259$ Totals 2,623,707$ 1,197,917$ -$ 2,028,174 -$ Available Funds as of June 30, 2018 (2,992,694)$ Available Funds as of June 30, 2019 (3,588,227)$ Fees collected in recent year and prior 5 years 5,348,089$ Funds held longer than 5 years -$ Item 11Packet Page 253 City of San Luis Obispo Summary of Local Agency Improvement Fee Expenditures (AB 1600 Development Impact Fees) Report for Fiscal Year Ended June 30, 2019 Transportation Impact Fee (Fund 507) Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income 90653 TRAFFIC VOLUME COUNTS $ 4,635 100% $ 4,635 -$ $ - 91252 PRADO RD BRIDGE WIDEN $ 125,216 100% $ 125,216 -$ $ - 91375 BIKE BRIDGE/PHILLIPS $ 17,514 100% $ 17,514 -$ $ - 91111 RR SAFETY TRL TAFT/PEPPER $ 181,849 100% $ 181,849 -$ $ - 91377 MONT/OSOS TRAFFIC SIG $ - 100% $ - -$ $ - 91435 LOVR INTERCHANGE LDP $ 345,288 100% $ 345,288 -$ $ - 91503 CALIFORNIA TAFT ROUNDABOUT $ 1,089 100% $ 1,089 -$ $ - 91609 BROAD CORRIDOR IMPR $ 27,656 100% $ 27,656 -$ $ - 91610 TOPOGRAPHIC SURVEY AND ROW ESTABLISHMENT $ 10,598 100% $ 10,598 -$ $ - 91611 DN-ORCUTT & TANK ROUNDABOUT $ 208,423 100% $ 208,423 -$ $ - 91613 PRADO RD INTERCHANGE $ 245,945 100% $ 245,945 -$ $ - 99821 LOVR/US 101 INTERCHANGE $ - 100% $ - -$ $ - 90073 HIGUERA WIDENING MARSH $ - 100% $ - -$ $ - 1000013 WRRF HYRDRAULIC MODEL UPDATE $ 21,853 100% $ 21,853 -$ $ - 1000015 TRAFFIC DATA $ 60,045 100% $ 60,045 -$ $ - Totals 1,250,110$ 1,250,110$ -$ 2,034,421$ 41,966$ Available Funds as of June 30, 2018 6,884,471$ Available Funds as of June 30, 2019 7,739,192$ Funds Collected in recent year and prior 5 years 7,356,757$ Funds held longer than 5 years 382,435$ Item 11 Packet Page 254 City of San Luis Obispo Summary of Local Agency Improvement Fee Expenditures (AB 1600 Development Impact Fees) Report for Fiscal Year Ended June 30, 2019 Margarita Area Traffic Impact Fee (Fund 507) Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income -$ 0%-$ -$ 416,805$ 14,023$ -$ Totals -$ -$ -$ 416,805$ 14,023$ -$ Available Funds as of June 30, 2018 978,796$ Available Funds as of June 30, 2019 1,409,623$ Funds Collected in recent year and prior 5 years 1,409,623$ Funds held longer than 5 years -$ Item 11 Packet Page 255 City of San Luis Obispo Summary of Local Agency Improvement Fee Expenditures (AB 1600 Development Impact Fees) Report for Fiscal Year Ended June 30, 2019 Orcutt Area Traffic Impact Fee (Fund 507) Project Number Project Name Project Amount Expended Percent Funded by Impact Fees Impact Fee Expenditures Non Impact Fee Expenditures Developer Impact Fees Collected Impact Fee Interest Income Other Income 91611 DN-ORCUTT & TANK ROUNDABOUT $ 208,423 100% $ 208,423 -$ $ 438,197 $ - Totals 208,423$ 208,423$ -$ 438,197$ -$ -$ Available Funds as of June 30, 2018 (24,785)$ Available Funds as of June 30, 2019 204,989$ Funds Collected in recent year and prior 5 years 456,575$ Funds held longer than 5 years (251,586) Item 11 Packet Page 256 City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Public Safety Impact Fee (Fund 508)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresDeveloper ReimbursementsDeveloper Fees CollectedImpact Fee Interest IncomeAvailable Funds as of June 30, 2018 -$ Available Funds as of June 30, 2019 18,600$ Fees collected in recent year and prior 5 yea18,600$ Funds held longer than 5 years -$ Item 11Packet Page 257 City of San Luis ObispoSummary of Local Agency Improvement Fee Expenditures(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2019Water Impact Fee (Fund 601)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresDeveloper ReimbursementsDeveloper Fees CollectedImpact Fee Interest IncomeOther Income55110 Nacimiento 7,251,025$ 39%2,827,900$ -$ 89350 Water Reuse Project Loan Debt Service -$ 59% -$ -$ 89350 2006 Water Treatment Plant Debt Service-$ 29%-$ -$ 89350 2012 Water Refunding Debt Service520,800$ 23% 119,784$ -$ 89350 2018 Refunding of '06 & '09 Bonds899,802$ 0%-$ -$ Totals 8,671,627$ 2,947,684$ -$ 3,745,666$ -$ Available Funds as of June 30, 2018(1,512,317)$ Available Funds as of June 30, 2019(6,438,278)$ Fees collected in recent year and prior 5 years 11,174,628$ Funds Held Longer than 5 Years-$ Item 11Packet Page 258 Department Name: Community Development Cost Center: 4003 For Agenda of: January 21, 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 3063 - PHASE 3, 3987 ORCUTT ROAD (FMAP 1959-2018) RECOMMENDATION Adopt a draft Resolution (Attachment A) approving the Final Map for Tract 3063 – Phase 3 located at 3987 Orcutt Road (Attachment B) and authorize the Mayor to execute a Subdivision Agreement and Easements shown on the Final Map in accordance with Section 16.04.010.A.2 of the City’s Subdivision Regulations. REPORT-IN-BRIEF A vesting tentative map for Tract 3063 (all phases) was approved by the City Council on May 19, 2015 (Attachment C). Amended conditions and mitigation measures were approved by the City Council on February 15, 2018 per Resolution No. 10861 (Attachment D). Phase 3 of the final map has been submitted and the Public Works Director has determined that the Phase 3 final map is in substantial compliance with the tentative map in accordance with Section 16.04.040.A.3 of the City’s Subdivision Regulations. Once the map is approved by the City Council and all the appropriate fees and securities are submitted to guarantee completion of the Phase 3 improvements, the map can be recorded. DISCUSSION Background Tract 3063-Phase 3 Tract 3063-Phase 3 (FMAP 1959-2018) is located at 3987 Orcutt Road. This subdivision is commonly referred to as Righetti Ranch. A vesting tentative map for Tract 3063 (all three phases) was approved by the City Council on May 19, 2015, by Resolution No. 10619 (2015 Series), with approved amendments to mitigation measures and conditions by Resolution No 10861 (2018 series). The tentative map for phase 3 approved the creation of 34 single-family residential lots, one lot for private street, one lot for public park, two lots for public open space, and one lot for private open space. Due to the size of the tentative map, only the “sheets” of the tentative map that are pertinent to the final map approval are included (Attachment E). Tract 3063-Phase 3 will therefore create 39 lots consisting of: Item 12 Packet Page 259 1. 34 single-family lots 2. One private street lot 3. One public park lot 4. Two public open space lots 5. One private open space lot There are many curb, gutter, sidewalk, street, bikeway, and traffic circulation improvement requirements for the project as established by the conditions of approval including mitigation measures from the Initial Study/Mitigated Negative Declaration that was approved with the Tentative Map. Righetti Ranch LP (Subdivider) previously requested, and the City Council approved, deferment of some of the public improvements for the project to better match the scope of development in each of the three phases. All deferred improvements will now be completed with construction of Phase 3. The deferred improvements that will now be completed include: Tank Farm Road Frontage Improvements (from Phase 1) Frontage improvements on Tank Farm Road are near completion. The roundabout allows pedestrians to cross Tank Farm Road at Righetti Ranch Road and travel on the south side of the street to Islay Park and/or French Park. This reduced the need for the full sidewalk connection on the north side of Tank Farm Road all the way to Orcutt Road as part of Phase 1 or Phase 2. Left-turn pockets (interim) at the Brookpine and Wavertree intersections were completed with Phase 1, improving the safety at these intersections by removing the turn queues in the through lanes that existed. The remainder of the Tank Farm Road frontage improvements, from the railroad tracks to Orcutt Road, including permanent left-turn pockets for Brookpine and Wavertree, will be completed with this final Phase 3 map. The City is guaranteed this completion via the subdivision improvement bonds. Orcutt Road Frontage Improvements Conditions #27 and #116 of the tentative map for Tract 3063 require construction of all the improvements on Orcutt Road from Tiburon Way to Tank Farm Road (noted above) and along the Tract 3066 (Jones) frontage with Phase 1 unless otherwise deferred by the Public Works Director and Community Development Director. This requirement was established prior to finalization of phasing for all the subdivisions in the area. In order to make the project economically viable, the Subdivider had requested that some of the frontage improvements be deferred to spread out the costs among the various phases of the project. The City supported the deferral request. The balance of Orcutt Road improvements required by Tract 3063 will be completed with this final Phase 3 map. The City is guaranteed this completion via the subdivision improvement bonds. Item 12 Packet Page 260 Tank Farm/Orcutt Intersection Improvements The City and Subdivider have agreed to a roundabout in-lieu of a signalized intersection and dedicated right-turn pocket at this location. Off-site construction of the Tank Farm/Orcutt Intersection Improvements are required to be constructed and completed prior to building permit issuance of Tract 3063 Phase 3. Per the conditions of approval for the project, the City has taken the lead with preparing construction documents (plans, specifications and estimates) for the roundabout and has provided these materials to project applicant. Public Works staff and the applicant team are currently coordinating on final refinements to the construction documents with a targeted construction start date of summer 2020. Funding for the roundabout construction includes a combination of a direct contribution from the applicant, and transportation impact fee credits/reimbursements via the Citywide and OASP Transportation Impact Fee programs. The current construction cost is estimated at $3.3 million. Bicycle and Pedestrian Access Condition #32 for tentative Tract 3063 requires completion of bicycle and pedestrian paths to connect Tracts 3063, 3066, and adjoining OASP neighborhoods with Islay Park. A mix of pedestrian/bicycle trails, sidewalks, and on-street bike lanes have been constructed in Phase 1 and Phase 2 to satisfy this condition. These paths provide connectivity from Islay Park to the Tract 3063 central neighborhood park and to future OASP developments immediately adjacent to Tract 3063. A pedestrian/bike path will connect the private streets in Phase 3 with Tract 3063 Phase 1 and Phase 2 neighborhoods. The City is guaranteed this completion via the subdivision improvement bonds. The other OASP neighborhoods currently under construction will provide additional bike and pedestrian connectivity to the northerly OASP limits. The City is guaranteed this completion via the subdivision improvement bonds. Reimbursement Agreement Conditions #36 and #117 of the Tract Map, allowed the Subdivider to present financing and reimbursement programs for infrastructure improvements to be considered with any final map application. The reimbursement has been approved per City Council Resolution No. 10812 (2017 series), dated June 7, 2017 (Attachment G). Approving the Final Map The tentative map was approved May 19, 2015. The tentative map had an initial two-year life per Municipal Code Section 16.10.150. A two-year extension was granted by the City (TIME- 0431-2017) to May 19, 2019. Per Subdivision Map Act Section 66452.6, a phased map allows for a 36-month extension with the filing of each map phase. Therefore, the tentative map life for this 3rd and final phase is extended to May 19, 2022. Item 12 Packet Page 261 The final map for Tract 3063-Phase 3 is ready to be approved and recorded. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map and approved modifications thereof. Section 66474.1 of the Subdivision Map Act states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” The approval of a final map is considered a ministerial action. Appropriate securities will be submitted prior to map recordation to guarantee completion of the required subdivision improvements as shown in the Subdivision Agreement (Attachment F). The resolution approving the final map also authorizes the Mayor to sign the Subdivision Agreement requiring the Subdivider to complete the subdivision improvements. Previous Council Action The tentative subdivision map for Tract 3063 (Righetti Ranch) was approved by City Council on May 19, 2015, by Resolution No. 10619 (2015 Series). The final map for Phase 1 was approved by City Council on February 21, 2017, by Resolution No. 10772 (2017 Series). The final map for Phase 2 was approved by City Council on October 1, 2019, by Resolution No. 11047 (2019 Series). Policy Context The City Council approves final maps as a follow-up action to their tentative map approval in accordance with the Subdivision Map Act and the City’s Subdivision Regulations. Public Engagement Public engagement was completed with the approval of the Tentative Map and the development of the Orcutt Area Specific Plan. CONCURRENCES The Public Works Department and Sustainability and Natural Resources Official concur with the recommended action. ENVIRONMENTAL REVIEW The Orcutt Area Specific Plan and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. The Righetti Vesting Tentative Tract Map #3063 (VTM) was analyzed in a project-specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FEIR. The VTM was approved and the IS/MND was adopted on May 19, 2015. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project. Item 12 Packet Page 262 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. FISCAL IMPACT Budgeted: N/A Budget Year: 2019-20 Funding Identified: Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A 0 0 0 State Federal Fees Other: Total $0 $0 $0 $0 There is no direct financial impact to the City associated with approving the final map for Tract 3036-Phase 3. As previously discussed in this report, there is a City funding obligation towards construction of the Tank Farm Road/Orcutt Road roundabout via the credits or reimbursements from the Citywide and OASP Transportation Impact Fee programs. Staff is currently analyzing the timing of fees in conjunction with the non fair-share costs and Staff may recommend one-time funding to complete the project as part of the mid-year budget review. In addition, the public improvements that will be constructed with this phase will result in an increase in maintenance costs for the public streets, public utilities, open space, parks and other infrastructure upon acceptance of the improvements by the City. The costs associated with additional maintenance of parks, open space, and infrastructure, together with the additional employees needed to perform the maintenance are typically funded through the normal budget process. As the facilities are accepted and begin to require standard maintenance, resources will be requested in future Financial Plans to meet the need. Overall, the fiscal impact of development in the Orcutt Area Specific Plan was evaluated when the plan was adopted, and again when the General Plan was updated in 2014. An analysis prepared by Applied Development Economics (ADE) concluded that build-out of land uses in the General Plan will generate sufficient revenue to maintain existing levels of service throughout the community. Item 12 Packet Page 263 ALTERNATIVES 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 b een 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). Since the final map is in substantial compliance with the tentative map, 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 TR 3063-Phase 3 c - COUNCIL READING FILE - Resolution 10619 (2015 Series) d - COUNCIL READING FILE - Resolution 10861 (2018 Series) e - COUNCIL READING FILE - Final Map f - Subdivision Agreement for Tract 3063 Phase 3 g - COUNCIL READING FILE - Resolution 10812 (2017 Series) h - COUNCIL READING FILE - Excerpted Pages from Tentative Map i - COUNCIL READING FILE - Tentative Map of all phases j - Ambient Communities PFFP letter dated June 28, 2017 Item 12 Packet Page 264 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 3063-PHASE 3 (3987 ORCUTT ROAD, FMAP-1959-2018) WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3063, as prescribed in Resolution No. 10619 (2015 Series); and WHEREAS, all the requirements, conditions and mitigation measures of said Resolution No. 10619 (2015 Series) that are applicable to Phase 3 are completed or appropriate securities will be in place prior to map recordation to guarantee their completion; and WHEREAS, the subdivider has completed all required subdivision improvements applicable to Phase 3 or will submit appropriate securities to guarantee installation of the required subdivision improvements as shown on the approved plans prior to map recordation, and all fees have been received or will be received prior to map recordation, as prescribed in the Subdivision Agreement; and WHEREAS, the Orcutt Area Specific Plan and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. The Righetti Vesting Tentative Tract Map #3063 (VTM) was analyzed in a project-specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FEIR. The VTM was approved and the IS/MND was adopted on May 19, 2015. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project. Approval of a 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). NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The final map for Tract 3063-Phase 3 is found to be in substantial compliance with the tentative map. SECTION 2. The Subdivision Agreement for Tract 3063-Phase 3 is approved and the Mayor is authorized to approve minor revisions to the agreement and execute the document. SECTION 3. Approval of the final map for Tract 3063-Phase 3 is hereby granted. SECTION 4. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution. Item 12 Packet Page 265 Resolution No. ______ (2020 Series) Page 2 R _____ SECTION 5. Environmental Review. The 2010 Final Environmental Impact Report for the Orcutt Area Specific Plan and the Initial Study/Mitigated Negative Declaration for Vesting Tentative Tract Map 3063 constitute the complete environmental determination for the project. Approval of a 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). Upon motion of _______________________, seconded by ________________________, and on the following roll call vote: AYES: NOES: ABSENT: The forgoing resolution was adopted this ______ day of ______________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ____________ day of __________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 12 Packet Page 266 Date: 10/2/2019 b - Vicinity Map – Tract 3063-Phase 3 Item 12 Packet Page 267 1 SUBDIVISION AGREEMENT THIS AGREEMENT is dated this __th day of ______ 20__ by and between Righetti NC, 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 3063-Phase 3, City of San Luis Obispo, California, as approved by the City Council on the ____ day of _________ 20__. The Subdivider desires that said Tract 3063-Phase 3 be accepted and approved as a Final Map pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the San Luis Obispo Municipal Code), and It is a condition of said regulations that the Subdivider agree to install the improvements as set forth on the plans therefore. TERMS AND CONDITIONS: In consideration of the foregoing, the Subdivider does hereby agree to construct and install the following subdivision improvements in accordance with said subdivision regulations, and in accordance with approved plans and specifications and any revisions thereto 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 Item 12 Packet Page 268 2 5. DRAINAGE STRUCTURES 6. STREET LIGHTS 7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the inspection and approval of such facilities by the City, each public utility shall be required to file a letter stating that the developer has properly installed all facilities to be provided by him, and that the said utility is prepared to provide service to residents upon request. 8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project approvals. All of the above facilities shall be installed in the locations designated and to the plans and specifications on file and approved by said City Engineer. The lines and grades for all of said improvements shall be established by the Subdivider in accordance with said approved plans and specifications. The Subdivider agrees that the work of installing the above improvements shall begin within thirty (30) days from the date of recording of the Tract 3063-Phase 3 final map, and that the work shall be completed within twelve (12) months of said recording date, unless an extension has been granted by the City, provided that if completion of said work is delayed by acts of God or labor disputes resulting in strike action, the Subdivider shall have an additional period of time equivalent to such period of delay in which to complete such work. Any extension of time hereunder shall not operate to release the surety on the Improvement Security filed pursuant to this agreement. In this connection, the surety waives the provisions of Section 2819 of the Civil Code of the State of California. No building permits will be issued nor occupancy granted after the expiration date of the agreement until completion and acceptance of all subdivision improvements unless specifically approved by the City. Item 12 Packet Page 269 3 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. Setting of new survey monuments or resetting of disturbed monuments shall be in accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors Act, Chapter 15 of the Business and Professions Code of the State of California. The Subdivider attaches hereto, as an integral part hereof, and as security for the performance of this agreement, instrument(s) of credit or bond approved by and in favor of the City of San Luis Obispo, and conditional upon the faithful performance of this agreement. Said instrument of credit or bond is/are in the amount of $__________ shown in Exhibit 2, which is the amount of the estimated cost of said improvements. Subdivider agrees to remedy any defects in the improvements arising from faulty workmanship or materials or defective construction of said improvements occurring within twelve (12) months after acceptance thereof. In accordance with Sections 66499.7 and 66499.9 of the Government Code of the State of California, upon final completion and acceptance of the work, City will release all but 10% of the improvement security, that amount being deemed sufficient to guarantee faithful performance by the Subdivider of his obligation to remedy any defects in the improvements arising within a period of one year following the completion and acceptance thereof. Completion of the work shall be deemed to have occurred on the date which the City Council shall, by resolution duly passed and adopted, accept said improvements according to said plans and specifications, and any approved modifications thereto. Neither periodic nor progress inspections or approvals shall bind the City to accept said improvements or waive any defects in the same or any breach of this agreement. Item 12 Packet Page 270 4 “AS-BUILT” record drawings are to be submitted within four weeks of completion of construction and prior to City acceptance of the public improvements. If the Subdivider fails to complete the work within the prescribed time, the Subdivider agrees that City may, at its option, declare the instrument of credit or bond which has been posted by Subdivider to guarantee faithful performance, forfeited and utilize the proceeds to complete said improvements, or city may complete said improvements and recover the full cost and expense thereof from the Subdivider or his surety. The Subdivider has deposited with the City a labor and materials surety or sureties in the amount of 50% ($___________) of the above described subdivision improvements in accordance with State law. Said Subdivider shall pay an inspection fee for City to inspect the installation of said subdivision improvements, and to verify that they have been completed in accordance with the plans and specifications. If off-site dedication of property is necessary to facilitate the construction of the required subdivision improvements, the subdivider shall exhaust all avenues available to acquire said off-site dedication. In the event the subdivider is unable to acquire said property, the City may lend the subdivider its powers of condemnation to acquire the off-site dedication, including any necessary construction, slope, and drainage easements. The Subdivider shall pay for all costs incurred by the City to acquire the off-site dedication, including, but not limited to, all costs associated with condemnation through the condemnation process. Prior to proceeding with the condemnation process, the Subdivider shall deposit with the City all or a portion of the anticipated costs, as determined by the City Attorney, of the condemnation proceedings. The City does not and Item 12 Packet Page 271 5 cannot guarantee that the necessary property rights can be acquired or will, in fact, be acquired. All necessary procedures of law would apply and would have to be followed. Title 16 of the San Luis Obispo Municipal Code, entitled "Subdivision," all plans and specifications on file with said City Engineer as a part of said Subdivision Map, and all other documents filed with the City by the Subdivider and approved by the City Engineer are hereby referred to for further particulars in interpreting and defining the obligations of the Subdivider under this agreement. Pursuant to Government Code Section 66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the subdivider of any Indemnified Claim upon being presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim. It is understood and agreed by and between the Subdivider and the City hereto that this agreement shall bind the heirs, executors, administrators, successors and assigns of the respective Parties to this agreement. It is agreed that the Subdivider will furnish copies of the successful bidder's contract unit prices and total bid prices for all of the improvements herein referred to. Item 12 Packet Page 272 6 IN WITNESS WHEREOF, this agreement has been executed by: SUBDIVIDER RIGHETTI NC LLC, a Delaware limited liability company By: Righetti Ranch, LP, a Delaware limited partnership Its: Sole Member By: NRE Manager LLC, a Delaware limited liability company Its: General Partner By: Ambient Righetti Manager, LLC, a California limited liability company Its: Sole Member By: _____________________________ Print Name: __________________ Title: _______________________ By: _____________________________ Print Name: __________________ Title: _______________________ CITY OF SAN LUIS OBISPO MAYOR Heidi Harmon ATTEST: CITY CLERK Teresa Purrington APPROVED AS TO FORM: CITY ATTORNEY Christine Dietrick Item 12 Packet Page 273 7 EXHIBIT 1 TRACT 3063-PHASE 3 SUBDIVISION AGREEMENT 1. The Subdivider has deposited a monumentation security in the amount of $________ 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. Plancheck and inspection fees for the subdivision improvements have been paid as listed in the attached Exhibit 2. 3. Park-in-lieu fees will be paid at time of issuance of building permit per the fee schedule in effect at the time the Vesting Tentative Map was approved (adjusted for CPI increases), unless the vesting rights have expired as set forth in Government Code Section 66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect at time of building permits. Credit is available to subdivider for dedication of approved parkland. 4. Water and sewer impact fees shall be paid at time of building permits through the Community Development Department per the fee schedule in effect at the time the Vesting Tentative Map was approved (adjusted for CPI increases), unless the vesting rights have expired as set forth in Government Code Section 66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect at time of building permits. 5. Transportation impact fees shall be paid at time of building permits through the Community Development Department per the fee schedule in effect at the time when the Vesting Tentative Map was approved (adjusted for CPI increases), unless the vesting rights have expired as set forth in Government Code Section 66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect at time of building permits. 6. The subdivider shall comply with all requirements of Council Resolution No. 10619 (2015 Series) approving the tentative map, and Council Resolution No. 10861 (2018 Series) amending the conditions and mitigation measures. 7. The Subdivider has elected to pay a roadway maintenance fee to satisfy Condition #49. The fee of $____________ was approved by the City Engineer in accordance with City Engineering Standards and guidelines and satisfies the requirements of Condition #49. The Subdivider will be required to review this condition with the City Engineer upon each subsequent phase of development to determine if additional fees, testing, or pavement repair will be required as a result of impacts from future phases. Item 12 Packet Page 274 8 EXHIBIT 2 TRACT 3063-PHASE 3 - FEE AND BOND LIST 3987 Orcutt Amount Form Date Received Bond Release Status Bonds and Guarantees: Faithful Performance to guarantee construction and completion of the subdivision improvements (FMAP-1955- 2018) $3,934,156 xxx xxx Can be released upon City acceptance of improvements, deposit of one-year warranty surety, and approval of record drawings. Labor & Materials (50% of total cost of above improvements) (FMAP-1955- 2018) $1,967,078 xxx xxx Can be released 90 days after acceptance of improvements, if no claims. (Civil Code Section 8412) Faithful Performance to guarantee construction and completion of the Tank Farm/Orcutt Road Construction Phase 3 Improvements (FMAP-1718-2015) $1,131,932 (Pending) xxx xxx Labor & Materials (50% of total cost of above improvements) (FMAP-1718- 2015) $565,966 (Pending) xxx xxx Offsite Water Main Extension (FMAP-2242-2015/ FMAP-4024-2016) See Tract 3063 Phase 1 $775,000 Bond 4/3/18 Transferred from Tract 3063 Phase 1 Monument Guarantee $TBD xxx xxx Can be released upon verification that monuments have been set and surveyor has been paid. 10% Warranty $506,609 xxx To be collected prior to release of Faithful Performance Bond Can be released one-year after acceptance of improvements, if no defects, and approval of record drawings. Fees: Map Check Fee $20,811.25 Check 10/26/18 Paid in Full 10-26-18 Item 12 Packet Page 275 9 Plan Check Fee (Fmap-1955-2018) $48,065.92 xxx xxx Deposit of $25,000 made on 10-25-18 TBD Construction Inspection Fee $138,080.71 xxx xxx TBD Leave blank for miscellaneous Roadway Maintenance Fee $_______ xxx xxx Deposit in Acct # 40050300-90346953 Streets Reconstruction and Resurfacing Master per Matt Horn Park In-Lieu Fee1 To be collected with building permit. Credit to be given for approved parkland dedication. Affordable Housing Requirements See Affordable Housing Agreement Water Impact Fee1 To be collected with building permit Wastewater Impact Fee1 To be collected with building permit Transportation Impact Fee1 To be collected with building permit 1 All Impact Fees are adjusted annually (July 1) based on CPI. Credit given for demolished units. Item 12 Packet Page 276 Item 12 Packet Page 277 Item 12 Packet Page 278 Item 12 Packet Page 279 Page intentionally left blank. Item 12 Packet Page 280 Department Name: Community Development Cost Center: 40400 For Agenda of: January 21, 2020 Placement: Study Session Estimated Time: 30 Minutes FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Housing Coordinator SUBJECT: STUDY SESSION: SUMMARY AND UPDATE OF RECENT 2019 HOUSING LEGISLATION RECOMMENDATION Receive an update on recently passed State housing legislation and discuss action items and anticipated impacts to ensure ongoing compliance with City of San Luis Obispo (City) operations. DISCUSSION Background The 2019 California Legislative Session ended on October 13, 2019 with over 30 new bills in response to the State’s worsening housing crisis. Recently elected Governor Gavin Newsom signed several of these bills designed to increase housing production by easing development regulations and compelling jurisdictions to make fee and land information readily available to potential developers. There were also several bills passed that impose new ongoing reporting and inventory requirements for local jurisdictions. Policy Context The new State housing legislation is impactful to the City as it creates several new requirements staff will have to incorporate into City practices beginning January 1, 2020. Numerous professional organizations provided information regarding these bills, including the American Planning Association, League of California Cities, and various housing and land use law firms across the State. An initial summary collected from the opinions of the above entities, as well as any initial action items and foreseen impacts to the City, are provided in Attachment A for new State laws, pertinent for the City. Note that several other housing-related laws were passed in the 2019 Legislative Session; however, these laws are specific to regional areas and jurisdictions outside of San Luis Obispo and the Central Coast, thus they are not summarized in Attachment A. Additionally, a summary and action items are included in relation to SB 166, which was passed as part of the 2017 Housing Package. This is because that bill contains specific requirements the City must comply with in relation to the Sites Inventory to accommodate the 6th Cycle Regional Housing Needs Allocation, which is part of the current Housing Element Update. Item 13 Packet Page 281 The following table displays the bills discussed in Attachment A and includes links to the corresponding bill text. Category Bill Title Bills Removing Barriers to Boost Housing Production SB 330 – Housing Crisis Act of 2019 and Changes to Permit Streamlining Act & Housing Accountability Act AB 1763 – Density Bonuses for Affordable Housing AB 1743 – Eligibility of Property Welfare Exemptions AB 116 – Enhanced Infrastructure Financing Districts Surplus Land Databases and Reporting Requirements AB 1486 / SB 6 / AB 1255 – Expansion of Surplus Land Act and Reporting AB 1483 – Housing Data Collection and Reporting Requirements for Accessory Dwelling Units AB 68 / AB 881 / SB 13 – Modifications to Increase Accessory Dwelling Unit Development AB 587 – Sale of Accessory Dwelling Units AB 670 – Construction of Accessory Dwelling Units in Common Interest Developments AB 671 – Affordable Accessory Dwelling Unit Program Creation Established “Uses by Right” AB 101 – Housing and Homelessness Budget and Regulations SB 234 – Keeping Kids Closer to Home Act Related Housing Element Laws from 2017 Housing Package SB 166 – “No Net Loss” Law Previous Council and Advisory Body Action Although there has not been any previous Council or Advisory Body action on these particular bills, City staff have historically held study sessions and have provided updates to the Council and Planning Commission on new State housing laws that affect local policy and regulations as applicable. Ongoing monitoring and reporting on changing State housing legislation is a task in the 2019-21 Housing Major City Goal, as well as a theme commonly referenced throughout the Housing Element. Public Engagement As this recommendation is to receive an update on recently passed housing legislation, no public engagement is required. However, as this legislation relates to updating City policies, ordinances, and standards, public engagement and outreach will be conducted, with opportunities for public to provide comments at or before any future hearings or study sessions. Item 13 Packet Page 282 Next Steps City staff will continue to analyze the housing legislation for additional impacts and monitor for any amendments that arise. Staff is also working on an update to the City’s current Accessory Dwelling Unit Ordinance, in accordance with these new State laws, which is anticipated for City Council review in early February 2020. ENVIRONMENTAL REVIEW Since this item is informational in nature and involves no action by the City Council, the California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-2020 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 N/A As of now, there is no immediate fiscal impact associated with this study session. The California Department of Housing and Community Development (HCD) has historically published technical assistance documents and hired resources to assist local jurisdictions implement new housing laws. Since these particular laws will require the City to adjust existing policies, ordinances, and standards, the City will need to utilize any future technical assistance resources HCD provides, and may also need to consider additional staffing resources to help implement the necessary changes. ALTERNATIVES Continue consideration of the housing legislation update presentation. Although no action is recommended in association with this report, the City Council could ask staff to return during a future meeting to present additional information. If the Council would like to hear additional information at a future meeting, specific direction should be provided to staff. Attachments: a - Summary and Update of Recent 2019 Housing Legislation Item 13 Packet Page 283 City of San Luis Obispo, Community Development, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7170, slocity.org Summary and Update of Recent 2019 Housing Legislation Housing Legislation City Council Study Session BILLS REMOVING BARRIERS TO BOOST HOUSING PRODUCTION SB 330 – Housing Crisis Act of 2019 and Changes to the Permit Streamlining Act & Housing Accountability Act Description: This bill establishes the Housing Crisis Act of 2019, in response to the declaration of a statewide housing emergency which will be in effect until January 1, 2025. The law includes 16 sections aimed to accelerate housing production throughout California by streamlining and permitting approval processes, ensuring “no net loss” in zoning capacity and limiting fees after residential projects are approved. The bill contains provisions that apply to all jurisdictions throughout the State, as well as additional provisions limited to “affected” cities and counties. Descriptions of both new areas of provisions are described in further detail below, along with key actions and foreseeable impacts to the City: Statewide Provisions (update to the Housing Accountability Act & Permit Streamlining Act): Statewide, SB 330 establishes a new Preliminary Application Process for residential housing projects, as displayed in the figure below. Although the bill does not require new housing applications to submit a Preliminary Application, the law requires jurisdictions to offer the Process and to review/accept applications that comply with the terms and provisions identified in SB 330, should an applicant choose to utilize this new Preliminary Application Process. Source: APA California, SB 330 Housing Crisis Act of 2019 Webinar, December 13, 2019. Specific Provisions for “Affected” Cities and Counties (The Housing Crisis Act): SB 330 also outlines specific housing provisions in which “affected” cities and counties throughout the State must comply. Although the California Department of Housing and Community Development (HCD) has until June 1, 2020 to officially publish these jurisdictions, it is anticipated that the City will be identified as an “affected city” subject to these provisions of SB 330. Provisions for these areas include the following: Preliminary Application Vets standards and fees Complete Application and Historic Determination Must be submitted within 180 days after Preliminary Application Application Review Consistancy review with objective standards at time of Preliminary Application Hearing Process Limit of 5 hearings; must act within 90 days after EIR is certified Project Approval If project not approved, subject to judicial review under the Housing Accountability Act Item 13 Packet Page 284 Page 2 Summary and Update of Recent 2019 Housing Legislation - No residential downzoning or any adoption of standards that reduce residential capacity from what was in place as of January 1, 2018, unless if there is a “no net loss” exemption finding that allows up zoning to compensate for lost residential capacity as approved by HCD. - No adoption or enforcement of housing moratorium, except to protect against an imminent threat to the health and safety of persons with HCD approval. - No newly adopted design standards, unless they are objective. - No growth control measures from levels that where in place on January 1, 2018, except for jurisdictions in predominately agricultural counties with voter-approved measures in place before 2005. Although there are several changes to permit processing under SB 330, there are still allowable things the City can enforce, which include: - Prohibition of commercial uses (including short-term occupancy bans) of land designated for residential - New standards that increase density, reduce cost, or “facilitate” housing - Housing Crisis Act does not apply to a housing development project located within a “very high fire hazard severity zone” as designated by the Director of Forestry and Fire Protection - CEQA still applies, and mitigation measures are not limited SB 330 also states that “affected” cities and counties may not approve housing development projects that would demolish dwelling units unless the proposed project both creates at least as many units as would be demolished and replaces all occupied or vacant “protected units.” The bill states that “protected units” include: - Units subject to recorded affordability restrictions for lower income households (or below) within the past five years - Units that are occupied by lower income households (or below) within the past five years - Units subject to local rent or price control - Units withdrawn from the market via the Ellis Act within the past 10 years. The bill also includes tenant protections for those tenants existing in units that are to be demolished. Actions Items for the City The City currently offers various “application checklists” for what is required in new development applications, which are publicly available on the City website. City staff will need to review the current application checklists to insure they are compliant with the 17 new items identified in the Permit Streamlining Process SB 330. City staff will also need to be educated and aware of the new Permit Streamlining provisions, to ensure compliance of review times, vested standards and fees, and public hearing requirements. Since it is also anticipated that the City will be identified as an “affected” jurisdiction, staff will need adhere to new demolition restrictions and replacement obligations as set forth by SB 330. Item 13 Packet Page 285 Page 3 Summary and Update of Recent 2019 Housing Legislation AB 1763 – Density Bonuses for Affordable Housing Description: AB 1763 amends California’s density bonus law to authorize significant development incentives to encourage 100 percent affordable housing projects. In response to a need for housing for low- and moderate-income households, the bill allows up to 20 percent of the units to be available for moderate income households, while the remainder of the units must be affordable to lower income households. The affordability restrictions apply to both the base units and the extra units granted through the density bonus. Qualifying projects will be able to receive an 80 percent density bonus from the otherwise allowable density on the site, along with up to 4 development incentives, and no parking requirements. Actions and Impacts to the City: The City will need to update Chapter 17.140 (Affordable Housing Incentives) of the Zoning Regulations for consistency with AB 1763. It is anticipated that this change, along with the changes outlined by SB 330, will allow for non-profit housing developers to increase the number of affordable units in 100 percent affordable projects. AB 1743 – Eligibility of Property Welfare Exemptions Description: This bill expands properties that are exempt from community facility district taxes, to include properties that qualify for the property tax welfare exemption. The bill also limits the ability of local governments to reject housing projects qualifying for the exemption. Impacts to the City: Limited impact to the City at this time is perceived since historically, the City has not rejected housing projects that have qualified for welfare exemptions. Welfare exemptions must be submitted to the County Assessor, and are only available to non-profit organizations that are religious, hospital, scientific, or charitable in nature. AB 116 – Enhanced Infrastructure Financing Districts Description: AB 116 removes the requirement for Enhanced Infrastructure Financing Districts (EIFDs) to receive voter approval, prior to the issuance of any bonds. Impacts to the City: Limited impact to the City at this time is perceived but will be beneficial to the City for future housing developments to be EIFDs, since voter approval is no longer required to create these Districts. Item 13 Packet Page 286 Page 4 Summary and Update of Recent 2019 Housing Legislation SURPLUS LAND DATABASES AND REPORTING REQUIREMENTS AB 1486 / SB 6 / AB 1255 – Expansion of Surplus Land Act and Reporting Description: These three bills expand the Surplus Land Act requirements for local jurisdictions, thus requiring cities and counties to include specified information relating to surplus lands in their housing elements and annual progress reports (APRs). The package also requires the HCD to establish and maintain a database of these surplus lands and public inventory of sites suitable for residential development. Impacts to the City: Staff will need to update the inventory of City surplus land (land no longer necessary for the City’s use) and City excess land (land in excess of the City’s foreseeable needs), and provide this inventory in the 2019 Housing APR, which is due to HCD by April 1st, 2020. Additionally, the City will need to actively manage and digitally publish the Sites Inventory, currently being created as part of the Housing Element Update, that identifies suitable/available parcels for residential development. AB 1483 – Housing Data Collection and Reporting Description: This bill requires local jurisdictions to publicly share information about zoning ordinances, development standards, fees, exactions, and affordability requirements. It also requires HCD to develop and update a 10-year housing data strategy. Specifically, law requires jurisdictions to post the following on their websites: 1. A current schedule of fees, exactions and affordability requirements imposed by the agency that are applicable to a proposed housing development project (defined as a residential project, mixed used project or transitional or supportive housing project) 2. All zoning ordinances and development standards, including an identification of the zoning ordinances and development standards applicable to each parcel 3. The list of information required from a development project applicant 4. The current and five previous annual fee reports or annual financial reports 5. An archive of impact fee nexus studies or cost of service studies conducted by the public agency after January 1, 2018. Impacts and Actions to the City: The City currently publishes all of the current and active information identified in the bill on its website. However, to comply with state law, the City will need to publish all annual fee schedules and reports dating back to Fiscal Year 2014-15. The City should also consider organizing its’ online archive of fee nexus studies or any cost of service studies conducted after January 1, 2018. Item 13 Packet Page 287 Page 5 Summary and Update of Recent 2019 Housing Legislation REQUIREMENTS FOR ACCESSORY DWELLING UNITS AB 68 / AB 881 / SB 13 – Modifications to Increase Accessory Dwelling Unit Development Description: These three bills are designed to reduce barriers to, and facilitate the development of, accessory dwelling units (ADUs), which are anticipated to increase the supply of affordable housing in California. The package enacts several new provisions, which include restrictions on local jurisdictions’ permitting criteria, such as owner-occupancy and replacement parking requirements, mandates shorter approval timeframes, and creates a process in which HCD ensures local ordinances follow these statues. Impacts to the City: These new provisions took effect on January 1, 2020, and all existing local ordinances are now null and void if not consistent with the new provisions. In response to these changes, and to retain some local parameters on ADU development, staff is currently working on an update to the City’s ADU Ordinance, which is anticipated for Council review early February 2020. AB 587 – Sale of Accessory Dwelling Units Description: This bill establishes a new narrow exemption for affordable housing organizations to sell deed-restricted land to eligible low-income homeowners. Under this legislation, local agencies are able to adopt an ordinance to allow the separate sale or conveyance of ADUs from a primary residence, as if it was constructed by a nonprofit housing developer. Impacts to the City: This bill will be beneficial to the City for future affordable housing development, as it gives nonprofit housing developers (i.e. HASLO, Peoples’ Self-Help Housing) options in housing types to develop for lower income households. AB 670 – Construction of Accessory Dwelling Units in Common Interest Developments Description: AB 670 voids existing Covenants, Conditions & Restrictions (CC&Rs) that prohibits or unreasonably restricts ADUs or junior accessory dwelling units (JADUs) in existing common interest developments. Impacts to the City: The City currently has many existing neighborhoods in which this new provision is applicable. However, development of these structures will be subject to the provisions in the updated ADU Ordinance, currently underway by City staff. Item 13 Packet Page 288 Page 6 Summary and Update of Recent 2019 Housing Legislation AB 671 – Affordable Accessory Dwelling Unit Program Creation Description: This bill requires local governments to include a plan in their Housing Elements to incentivize and promote the creation of ADUs that can be offered at affordable rents to very-low, low, and moderate-income households. It also requires the State to develop a list of grants and financial incentives for affordable ADUs. Impacts to the City: This requirement only applies to jurisdictions with housing element revisions either due on or after January 1, 2021. The City’s Housing Element is due December 2020, making it exempt from the provisions of this bill. ESTABLISHED “USES BY RIGHT” AB 101 – Housing and Homelessness Budget and Regulations Descriptions and Actions for the City: The complex bill establishes new funding sources and regulations around six categories, described in detail below. Actions and any foreseen impacts to the City are also provided for each category: Housing Element Compliance: AB 101 requires that the HCD annually publish a list of jurisdictions that have failed to adopt a State-certified housing element. If a jurisdiction’s housing element is found to be noncompliant with state law, the bill then enacts the procedure to which the jurisdiction and HCD must follow to achieve compliance, as well as establishes grounds and consequences for legal challenges. The City currently has an HCD-certified Housing Element and fully intends on achieving compliance in the 6th Cycle Housing Element Update currently underway. Local Government Planning Support Grants Program: AB 101 requires the HCD to make available $250,000,000 to regions, cities, counties, and councils of governments (COG) for technical assistance with the preparation and adoption of planning documents and process improvements to accelerate housing production and facilitate compliance with the 6th Regional Housing Needs Allocation (RHNA) Cycle. City staff will continue to participate in discussions with the San Luis Obispo Council of Governments (SLOCOG) on how best to allocate the portion of financial support our COG will receive in relation to the allocated 6th Cycle RHNA funding. Item 13 Packet Page 289 Page 7 Summary and Update of Recent 2019 Housing Legislation Infill Infrastructure Grant Program of 2019: AB 101 makes available $500 million of competitive grant funding for “qualifying infill projects” or “qualifying infill areas.” The bill defines a qualifying infill project as a residential or mixed-use project located in an urbanized area within a city with an HCD-compliant housing element. These grant funds are allowed to be used for capital improvement projects to facilitate the development of a qualifying infill project or area, including water, sewer, or other utility improvements; streets, roads, transit; project site preparation; and sidewalk or streetscape improvement. The City will continue to monitor the grant guidelines and future Notice of Funding Availabilities published by HCD. Homelessness Funding and Programs: AB 101 makes $650 million available for one-time grants to cities, counties, and continuums of care (CoCs) to support regional coordination, expand or develop local capacity, and address immediate homelessness challenges. Awards will be based on applicants’ proportionate shares of the state’s total homeless population. The City participates in the local CoC overseen by the SLO County Department of Social Services and will continue its involvement in discussions and provide input on allocating the future funding to be received by our CoC. Low Barrier Navigation Centers: This bill establishes the term Low Barrier Navigation Centers as a “Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” The law states that these Low Barrier Navigation Centers and other supportive housing uses be a “use by right” allowed in residential and mixed-use zones. No discretionary approvals, with the exception of design review, are permitted under this law. The bill states that within 30 days of receiving an application for a center, a jurisdiction must notify the applicant whether the application is complete; and within 60 days of a completed application, the jurisdiction must act on the application. Since this piece of legislation created a new term, the City will need to include and define “Low Barrier Navigation Center” in the Zoning Regulations which allows for the development of homeless shelters in a majority of zoning districts, upon receiving approval of a Conditional Use Permit. The City will need to amend the Zoning Regulations to allow for no Conditional Use Permit requirement in certain zones for homeless shelters, thus allowing homeless shelters, Low Barrier Navigation Centers, and supportive housing developments to be an allowed “use by right” in areas zoned for mixed uses and nonresidential zones permitting multifamily uses. The City staff will also need to be aware of the 30 and 60 day review time for these developments, to ensure compliance with the new statute. State Low Income Housing Tax Credits: AB 101 increased the state low income housing tax credit program to $500 million for 2020. This is great news for the City, as this is a primary funding source our local non-profit housing developers utilize to build affordable housing in the community. Item 13 Packet Page 290 Page 8 Summary and Update of Recent 2019 Housing Legislation SB 234 – Keeping Kids Closer to Home Act Description: This bill established the “Keeping Kids Closer to Home Act” which aims to expand childcare opportunities for California families. This legislation allows large family childcare homes that provide care for up to 14 children in multifamily units, meaning these large family daycare homes are now to be treated as a residential use of property in local ordinances. The bill also prohibits a property owner or manager from refusing to sell or rent a dwelling unit to a person that is a daycare provider. The law prohibits local jurisdictions from imposing a business license, fee, or tax for the privilege of operating both small and large daycare homes as well. Actions for the City: The City currently requires large child daycare facilities to obtain approval by the Community Development Director via a Director’s Action to operate; thus the City will need to amend the Zoning Regulations to allow for these large daycare facilities to be an allowed use by right, with no requirement to obtain a business license for operation. The current Zoning Regulations also require these facilities to comply with parking requirements, which is now void under the law. RELATED HOUSING LEGISLATION FROM 2017 HOUSING PACKAGE SB 166 – “No Net Loss” Law Description: SB 166 was signed in 2017 by Governor Brown, as part of the State’s landmark Housing Package. This bill was designed to ensure that development opportunities remain available throughout the planning period to accommodate a jurisdiction’s RHNA cycle, especially for lower and moderate income households. The Memorandum recently issued by HCD on October 2, 2019, provides guidance for local jurisdictions to implement the statues Summary of Requirements: - Jurisdictions must identify adequate sites to accommodate their RHNA by income category at all times throughout the entire planning period of the 6th Cycle Housing Element - A jurisdictions may not take any action to reduce a parcel’s residential density unless it makes findings that the remaining sites identified in the Housing Element Sites Inventory can accommodate the remaining unmet RHNA by each income category, or if it identifies additional sites so that there is no net loss of residential unit capacity. Item 13 Packet Page 291 Page 9 Summary and Update of Recent 2019 Housing Legislation - If a jurisdiction approves a development of a parcel identified in the Housing Element Sites Inventory with fewer units than shown in the Housing Element, it must either make findings that the Housing Element’s remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level, or identify and make available sufficient sites to accommodate the remaining unmet RHNA for each income category. - A jurisdiction may not disprove a housing project on the basis that approval of the development would trigger the identification of zoning of additional adequate sites to accommodate the remaining RHNA. Impact and Actions for the City: Since the City has received the new 6th Cycle RHNA numbers, and is underway updating the Housing Element to accommodate the allocation, the provisions outlined by SB 166 are extremely pertinent to follow. A Sites Inventory to identify eligible locations for housing development to accommodate the total RHNA has historically been required in the Housing Element; however, state law now additionally requires jurisdictions to state the number of housing units to be developed by income level on each individual site in the Inventory, to accommodate the total RHNA. This means that the City will need to update the Sites Inventory accordingly to identify future housing development per each income level. The City will also need to ensure it identifies a sufficient amount of additional, back-up sites to accommodate the RHNA, in the case that future development of parcels results in less residential units than identified in the Sites Inventory. If at any time during the 6th Housing Element Planning Cycle the City finds that there is a shortfall of sites to accommodate the remaining RHNA, then the City must take immediate action to correct the shortfall by amending the Housing Element Sites Inventory to either include sites previously unidentified with capacity to accommodate the shortfall, or sites that have been rezoned to correc t for the shortfall. Any failure of the City to do so would constitute as a violation of this “No Net Loss” law, which is to be avoided. Nonetheless, this bill enacts the importance ongoing management and tracking of residential development in the City. Item 13 Packet Page 292 Department Name: Administration Cost Center: 1001 For Agenda of: January 21, 2020 Placement: Business Item Estimated Time: 45 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager Georgina Bailey, Management Fellow SUBJECT: CONSIDERATION OF A PROHIBITION ON THE SALE OF FLAVORED TOBACCO AND/OR ELECTRONIC CIGARETTE PRODUCTS RECOMMENDATION 1. Receive a report on the federal, state and regional approaches prohibiting the sale of flavored tobacco and/or electronic cigarette products; and 2. Review and provide direction on an introduced Ordinance (Attachment A) prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. REPORT-IN-BRIEF Over the past year, the City of San Luis Obispo (City) has monitored the issue of prohibiting the sale of flavored tobacco products and electronic cigarettes (e-cigarettes) at the federal, state and local level. Since the emergence of e-cigarette products in 2007, it has become the predominant method for using tobacco products amongst youth1. Currently, the U.S. Food and Drug Administration (FDA), which reviews and regulates tobacco products, has not conducted any premarket review of e-cigarette products. Due to the popularity of flavored e-cigarette products with the youth, and absence of a review by the FDA, a number of California cities and counties have prohibited the sale of flavored tobacco products, including e-cigarette products, while allowing the sale of non-flavored e-cigarette products to continue. Recently, several cities and counties have prohibited the sale of all e-cigarette products, including flavored and non-flavored products, to further limit the access of these products to the youth. In June 2019, San Francisco was the first major city in the country to prohibit the sale of all e-cigarette products, followed by the cities of Richmond, Livermore, Morro Bay and Arroyo Grande. 1 This conclusion is arrived at directly in the Truth Initiative’s Fact Sheet “E-cigarettes: Facts, stats and regulations” which is also supported by the U.S Department of Health & Human Services in their reports “Adolescents and Tobacco: Trends” Item 14 Packet Page 293 DISCUSSION Background In response to concerns expressed by community members, the City Council at its November 27, 2018 meeting, directed staff to analyze issues related to prohibiting or limiting the sale of flavored tobacco and e-cigarettes products within the City. Specifically, the City Council expressed concerns regarding the popularity and effects of flavored e-cigarettes products (also known as vaping, that deliver nicotine through a liquid) on the youth in the community. In response, staff prepared a City Council memo (Attachment b) that analyzed the various policy issues as well as potential options to prohibit the sale flavored tobacco products and e-cigarettes in the City. On October 1, 2019, the City Council directed staff, after additional public concerns were expressed on this topic, to return for additional discussion and direction. Flavored Tobacco Products and E-cigarettes Flavored tobacco is a tobacco product that imparts a characterizing flavor other than the taste or aroma of tobacco, including but not limited to menthol, mint, wintergreen, fruits, candies, herbs or spices. These products include, but are not limited to, flavored cigarettes, cigarillos and cigars, hookah, smokeless tobacco, and flavored components and accessories (such as e-juice which is used with e-cigarettes). E-cigarette products include an electronic device, typically battery operated, that heat a liquid to deliver an inhaled dose of nicotine or other substances. The liquid (commonly referred to as e-juice) can be tobacco and/or other flavors. Though flavored tobacco has been in the market for some time, e-cigarettes products were introduced more recently in 2007. Since that time, they have been the most commonly used tobacco product amongst youth in the United States2. According to the California Department of Public Health, the shapes and sizes of the devices can vary and include colorful vape pens, modified tank systems, and new pod devices that can look like the USB flash drives for computers, cell phones, credit card holders, and highlighters3. E-cigarettes can deliver a significant amount of concentrated nicotine to its user, and the long- term effects of vaping have still yet to be fully explored. These products, particularly the flavored variety, are popular among younger users. According to a February 2019 National Institutes of Health report, over 17.6% of 8th graders, 32.3% of 10th graders and 37.3% of 12th graders reported trying e-cigarettes nationwide4. In California, according to the 2017-18 California Healthy Kids Survey, more than 30% of high school students used e-cigarettes, with 10% of students saying they regularly use the product5. That was a 6.4% increase from the year before. In comparison, traditional cigarette smoking among high school students reached a historic low and decreased from 4.3% in 2015-16 to 2.0% in 2017-18. 2 Op.cit. fn.1 3 As defined by the California Department of Public Health “Vaping Associated Lung Injury (EVALI)” 4 As identified in February 2019 by the National Institute on Drug Abuse in an article “Vaping Rises Among Teens” with a graphic that outlines these statistics. 5 As reported by the 2017-18 California Student Tobacco Survey and the California Healthy Kids Survey both demonstrate the state trends of high school students e -cigarette usage as is reported in a CBS Los Angeles report “Survey Cigarette Use Down But Vaping on Rise Among Local High School Students ” Item 14 Packet Page 294 The widespread use of e-cigarettes by youth may have significant public health consequences. The U.S. Surgeon General has stated: “Tobacco use among youth and young adults in any form, including e-cigarettes, is not safe. In recent years, e-cigarette use by youth and young adults has increased at an alarming rate. E-cigarettes are now the most commonly used tobacco product among youth in the United State. E-cigarettes are tobacco products that deliver nicotine. Nicotine is a highly addictive substance, and many of today’s youth who are using e-cigarettes could become tomorrow’s cigarette smokers. Nicotine exposure can also harm brain development in ways that may affect the health and mental health of our kids.”6 City of San Luis Obispo Tobacco Regulations The City has a long history of regulating tobacco and was awarded a grade of “B” for its anti - smoking efforts by the American Lung Association in its 2019 State of Tobacco Control7. In 1990, the City was the first city in the world to successfully ban smoking in all public buildings, including bars and restaurants. In 2003, the City established a Tobacco Retail License (TRL) program (Municipal Code Chapter 8.14) to further regulate tobacco sales for tobacco retailers and to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors. This is accomplished by both license guidelines and enforcement programs by the San Luis Obispo Police Department. The TRL is required for all retailers selling tobacco products, including e-cigarette products (referenced as electronic smoking devices), is valid for one year and is required to be renewed on annual basis. License compliance monitoring by the Police Department includes compliance checks and the cost of compliance monitoring is incorporated into the license fee which of $736.80. Enforcement includes periodic operations that focus on underage tobacco sales with tobacco retailers. The Police Department collaborates with the County of San Luis Obispo’s Tobacco Control Program to ensure compliance with local and state regulations. There was one enforcement operation that occurred in 2019, which yielded one violation. There are approximately forty businesses in the City with current licenses through the TRL program. The TRL program was last amended in 2015 to prohibit the use of e-cigarette products in all places where smoking was currently prohibited and required retailers of e- cigarette products to also obtain a TRL. In addition, the City’s Municipal Code section (Chapter 8.18) regulates the sale and distribution of tobacco products including language that forbids the sale of tobacco products to minors. 6From the Office of the Surgeon General of the U.S Department of Health and Human Services in a report “E- Cigarette Use Among Youth and Young Adults A Report of the Surgeon General, 2016” 7 From the American Lung Association’s 2019 State of Tobacco Control County Grades Item 14 Packet Page 295 Federal and California and Laws In 2009, the federal government enacted the Family Smoking Prevention and Tobacco Control Act, which authorized the FDA to regulate the manufacture, marketing, and distribution of tobacco products. At this time, no e-cigarette products have been reviewed and approved by the FDA, as required by federal law. The deadline for FDA application reviews of all e-cigarette products is May 2020, though the timeline for the premarket review and testing process is yet to be determined, the FDA has up to a year after the submission to act . A recently passed federal law, taking effect on January 1, 2020, also prohibits the sale of tobacco products to anyone under the age of 21. The federal government also recently announced the prohibition of most flavored e-cigarette cartridges (single use), but would exempt menthol and tobacco flavors, as well as flavored liquid nicotine sold in open tank systems, typically sold at vape shops. Enforcement against companies that were still making or selling e-cigarette cartridges, would begin in February 2020.8 In 2003, California enacted the Cigarette and Tobacco Products Licensing Act to regulate the sale of tobacco and tobacco products. Similar to a business license, the Act requires every person selling cigarettes or tobacco products to the public in California to obtain a license from the California Department of Tax and Fee Administration. Since the California legislature has not fully occupied the field of tobacco sales, California cities are free to implement any tobacco sales regulation or restriction provided they do not involve the collection of taxes or the penal aspects of tobacco sales to minors. As of June 9, 2016, California law prohibits selling, giving, or furnishing tobacco products to individuals under the age of 21, including e-cigarettes. The Family Smoking Prevention and Tobacco Control Act authorizes the City to adopt local regulations prohibiting the sale, distribution, possession, exposure to, access to, and promotion of, or use of tobacco products, but does preempt the City from regulating tobacco product standards, manufacturing, and labeling. Accordingly, federal law grants the FDA authority to regulate all tobacco products and expressly preserves the power of local governments to enact additional or “more stringent” regulations related to or prohibiting tobacco sales. The City’s TRL program is consistent with the state Cigarette and Tobacco Products Licensing Act and the federal Smoking Prevention and Tobacco Control Act. The TRL regulations could be extended to include prohibitions on the sale of flavored tobacco and e-cigarettes products. On January 6, 2020, California legislatures introduced Senate Bill 793, which bans the sale of flavored tobacco products, including menthol. If approved, the bill would not ban the sale of non-flavored e- cigarette products. The bill is similar to the one that was introduced last year but was ultimately withdrawn. 8 For a discussion on the current FDA rules and regulations see https://www.marketwatch.com/story/federal- government-bans-popular-e-cigarettes-flavors-to-curb-underage-smoking-2020-01-02 and https://www.marketwatch.com/story/fda-to-ban-fruity-e-cigarette-pod-flavors-but-allow-tank-vaping-systems-2019- 12-31 and also https://www.nytimes.com/2019/12/31/health/e-cigarettes-flavor-ban-trump.html Item 14 Packet Page 296 Other Cities/Counties in California Over 55 cities and counties in California have passed restrictions on the sale of flavored tobacco products in an effort to reduce youth tobacco use. Recently, several cities have passed ordinances that limit the ability of tobacco retailers to sell e-cigarette products. San Francisco was the first to do so by placing a temporary moratorium on the sale of these products until they have been reviewed by the FDA. San Francisco’s ban on e-cigarettes was subject to a voter referendum that would have overturned the ban; however, voters upheld the ban in November 2019. Similar to San Francisco, several other cities and counties, including Richmond and Livermore have recently banned the sale of e-cigarettes products. Beverly Hills prohibited the sale of all tobacco products, with the exception of cigars at high-end cigar lounges and hotels, in June 2019. Other Cities/County in the Region Several cities in San Luis Obispo County and the City of Santa Maria have recently passed additional tobacco regulations. City of Morro Bay: 1) Created a TRL program. 2) Prohibited the sale of e-cigarettes products, including all flavored and non-flavored products, without the reference to the FDA review process. 3) Prohibited smoking in multi-unit residences, both in the units and common areas. 4) Prohibited the sale of tobacco products by retail establishments that contain a pharmacy. 5) Prohibited the sale of: (a) single cigars that cost less than five dollars (b) any of number of cigars fewer than the number contained in the manufacturer’s original consumer packaging (c) any package of cigars containing fewer than five cigars The effective date for prohibiting the sale of e-cigarette products is April 2020. City of Arroyo Grande: 1. Prohibited the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process. 2. Prohibited the possession of all tobacco products and paraphernalia by persons under the age of 21, with a fine of $75 or thirty hours of community service work. The effective date for prohibiting the sale of e-cigarette products is March 2020. City of Santa Maria: 1. Created a TRL program 2. Prohibited the sale of all flavored tobacco products, including those flavored with menthol. The regulations allow the sale of e-cigarette products that are not flavored. The effective date for prohibiting the sale of flavored tobacco products is July 2020. Item 14 Packet Page 297 County of San Luis Obispo (Scheduled for 1/14/2020): • Considering the prohibition on the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process, in all unincorporated areas within the County. The effective date for prohibiting the sale of e-cigarette products is 30 days after final adoption. Summary of Recent Flavored Tobacco and E-cigarette Products Regulations The County of San Luis Obispo’s Tobacco Control Program is the lead agency in the county in providing community education, prevention services, and technical assistance to a variety of stakeholders on the prevention of tobacco use. The program has been monitoring this issue for some time and has developed a visual to show policy approaches to address youth vaping (Attachment C). Policy Options Three options are listed below to guide the Council: 1. The City Council could move to adopt an introduced ordinance (Attachment a) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. This would be consistent with San Francisco, Arroyo Grande adopted ordinances and the County of San Luis Obispo proposed ordinance. The City of Morro Bay’s ordinance is similar, though it does not reference the FDA review process, which means that regardless if the FDA approves an e-cigarette product, the sale would be prohibited in Morro Bay. The Ordinance is designed to become effective 90 days after the second reading and thus provides three months for existing retailers to remove these products from their inventories. Item 14 Packet Page 298 2. The City Council could modify the introduced ordinance to prohibit the sale of flavored tobacco, which would allow the sale of non-flavored e-cigarette products to continue. This would be similar to the City of Santa Maria ordinance, which prohibited the sale of flavored tobacco, including menthol. 3. The City Council could also direct staff to conduct additional public engagement efforts, including public workshops, study sessions, and online surveys. This effort would require additional staff resources, which would be requested as part of the 2019-20 Mid-Year Budget and would delay any adoption of an ordinance by approximately six months. Environmental Concerns Due to the design of e-cigarettes, many of the cartridges that contain the ‘e-juice’ are single use. In 2015, of the more than 58 million e-cigarettes and refills that were sold in the United States, 19.2 million were designed as single use.9 Though there are few state and national studies in regards to environmental concerns related to e-cigarettes and ‘e-juice’, there are emerging electronic cigarette disposal issues at the City’s local level.10 Disposal of e-cigarette products, including the cartridge that contains the ‘e-juice’, has become a challenge locally for the San Luis Obispo Integrated Waste Management Authority (IWMA). The waste from the products can contain microplastics, metals, nicotine and combustible lithium ion batteries. Because of this, the waste is categorized is sometimes considered hazardous waste. According to IWMA staff, many of their third-party hazardous waste collectors are limiting the amount of e-cigarette waste collection. Sale of Cannabis Vaping Products Cannabis vaping products are recommended to be exempt from the definition of an e-cigarette product, which is consistent with the Morro Bay ordinance. Cannabis vaping products are regulated through the State of California (unlike e-cigarettes products) and are generally subject to additional regulations that prevent diversion to youth.11 In addition, cannabis is exempt from the definition of “electronic smoking device” for the City’s TRL program and instead is governed through the City’s regulations for cannabis businesses. Cannabis consumption, including vaping, remains unlawful to be consumed in public as identified in Section 9.10.210. PREVIOUS COUNCIL OR ADVISORY BODY ACTION As was previously discussed, the City Council initially requested that staff explore this item in November 2018 and directed staff to prepare a study session on the topic in October 2019 based on additional concerns expressed from the community. 9 As concluded by U.S National Institutes of Health’s National Library of Medicine in their study “Alert: Public Health Implications of Electronic Cigarette Waste” 10 Ibid which acknowledges, “No studies have yet traced disposal patterns of e -cigarettes, but research in progress suggests that like cigarette butts, spent e-cigarette capsules or replicable nicotine-filled plastic pods are often littered.” 11 As defined by the California Code of Regulations, Title 17 Division 1. Chapter 12. Manufactured Cannabis Safety California Department of Public Health – Cannabis Regulations Item 14 Packet Page 299 POLICY CONTEXT Regulating the sale of flavored tobacco products, e-cigarettes, or both, falls under Chapter 8.14, Health and Safety Tobacco Retailer License, of the City’s Municipal Code. The Council adopted Chapter 8.14 in 2003 to ensure tobacco retailers followed proper compliance with the sale and distribution of tobacco products and to minimize the access of tobacco products to the youth. Additional regulation of the sale and distribution of tobacco products falls under Chapter 8.18, including proper signage, sales to minors, self-service sales of tobacco, out of package sales and violations. PUBLIC ENGAGEMENT As was discussed at the October 1, 2019 City Council meeting, staff would not be able to complete significant public engagement on this topic in advance of a public meeting, but that notification of the meeting would be provided to affected retailers and interested parties. As such, staff provided notification of this item to retailers in the City’s Tobacco Retail License program and the County of San Luis Obispo’s Public Health Agency Tobacco Control Program on January 10, 2020. Public comment can also be provided to the City Council through written correspondence and public comment at the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-2020 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 N/A Item 14 Packet Page 300 The action before Council in itself does not have a fiscal impact. However, depending on the direction given by Council, any required funding would be considered with the 2019-20 Mid- Year Budget. ALTERNATIVES 1. Move to adopt the introduced ordinance (Attachment A) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. 2. Modify and move to adopt the introduced ordinance to prohibit sale of e-cigarette products not received premarket review by the FDA and flavored tobacco products. 3. Direct staff to conduct additional public engagement. Additional public engagement efforts, including public workshops, study sessions, and online surveys, would require additional staff resources. The additional staff resources would be requested as part of the 2019-20 Mid- Year Budget and would delay any adoption of an ordinance by approximately six months. Attachments: a - Draft Ordinance - Electronic Cigarette Products b - Council Memo on Flavored Tobacco Regulations c - County of San Luis Obispo Tobacco Control Program Policy Approach to Address Youth Vaping d - Exhibit A to Draft Ordinance Item 14 Packet Page 301 O______ ORDINANCE NO. _____ (2020 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE HEALTH AND SAFETY (CHAPTER 8.14) TOBACCO RETAILER LICENSE WHEREAS, the City of San Luis Obispo (“City”) is empowered to enact legislation to protect the health, safety, and welfare of the public; and WHEREAS, the City established a Tobacco Retail License Program (Ordinance 1440, 2003 Series) to ensure compliance with all federal, state and local laws and to protect minors from the illegal sale of tobacco products; and WHEREAS, the federal government has enacted numerous tobacco related laws that include, but are not limited to the Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”), enacted in 2009, that prohibited candy and fruit-flavored cigarettes, largely because these flavored products are marketed to youth and young adults, and younger smokers were more likely than older smokers to have tried these products. Among other things, the Tobacco Control Act authorized the U.S. Food and Drug Administration ("FDA") to set national standards governing the manufacture of tobacco products, to limit levels of harmful components in tobacco products and to require manufacturers to disclose information and research relating to the products' health effects; and WHEREAS, a central requirement of the Tobacco Control Act is premarket review of all new tobacco products. Specifically, every "New Tobacco Product" which is defined by federal law to be any tobacco product not on the market in the United States as of February 15, 2007, must be authorized by the FDA for sale in the United States before it may enter the marketplace; and WHEREAS, a New Tobacco Product may not be marketed until the FDA has found that the product is: (1) appropriate for the protection of the public health upon review of a premarket tobacco application; (2) substantially equivalent to a grandfathered product; or (3) exempt from substantial equivalence requirements; and WHEREAS, in determining whether the marketing of a tobacco product is appropriate for the protection of the public health, the FDA must consider the risks and benefits of the product to the population as a whole, including users and nonusers of the product, and taking into account the increased or decreased likelihood that existing users of tobacco products will stop using tobacco products and the increased or decreased likelihood that those who do not use tobacco products will start using them. Where there is a lack of showing that permitting the sale of a tobacco product would be appropriate for the protection of the public health, the Tobacco Control Act requires that the FDA deny an application for premarket review; and WHEREAS, in July 2013, the FDA published an independent report that concluded that “menthol use is likely associated with increased smoking initiation by youth and young adults,” “menthol in cigarettes is likely associated with greater addiction,” and “that menthol cigarettes pose a public health risk above that seen with nonmenthol cigarettes;” and Item 14 Packet Page 302 O______ WHEREAS, there are currently serious public health concerns about the immediate and long-term harm caused by electronic cigarettes/vaping use; and WHEREAS, approximately 1,300 cases of electronic cigarettes/vaping products related lung illnesses have been reported in hospitals, health clinics, and emergency rooms nationwide, with at least 26 confirmed electronic cigarettes/vaping use related deaths; and WHEREAS, the U.S. Surgeon General and the California Department of Public Health (CDPH) have issued health advisories to educate the public about the imminent health risk posed by electronic cigarettes/vaping products; and WHEREAS, teen use of electronic cigarettes/vaping products has grown rapidly in recent years, with a February 2019 National Institutes of Health report finding that over 17.6% of 8th graders, 32.3% of 10th graders, and 37.3% of 12th graders reported trying electronic cigarettes/vaping products last year nationwide; and WHEREAS, electronic cigarettes/vaping products, particularly the flavored products, are popular among younger users, and the packaging and advertising of these products by companies are often attractive to younger users; and WHEREAS, there are over 15,000 electronic cigarettes/vaping flavors available on the market, including youth-orientated flavors such as bubble gum, cotton candy, and fruit punch, among others; and WHEREAS, the City desires to amend its regulations to make them more comprehensive and effective at protecting the community from the harmful effects of electronic cigarette/vaping products, including devices; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 8.14.020, subsection A of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. Item 14 Packet Page 303 O______ SECTION 2. Section 8.14.030, of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device: (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time.” SECTION 3. Ordinance Number 1613 (2015 Series) is hereby amended and superseded to the extent inconsistent herewith. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 5. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 6. Effective Date. This ordinance shall be in full force and effect ninety (90) days after it passage. Item 14 Packet Page 304 O______ SECTION 7. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of ninety (90) days after its final passage. INTRODUCED on the _______ day of __________ 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, this ________ day of ______________________________, 2020. ______________________________ Teresa Purrington City Clerk Item 14 Packet Page 305 DATE: April 17, 2019 TO: Mayor and City Council FROM: Greg Hermann, Deputy City Manager VIA: Derek Johnson, City Manager DJ PREPARED BY: Ryan Betz, Assistant to the City Manager SUBJECT: FLAVORED TOBACCO PRODUCT REGULATIONS The purpose of this memorandum is to respond to inquiries about the potential to regulate flavored tobacco products in the City. In collaboration with staff from the County of San Luis Obispo’s Public Health Department, the following memo summarizes the City’s current Tobacco Retailer License (TRL) program, policies and recent actions at the Federal and State level, and work plan options for the Council’s consideration. Background On November 27, 2018, the City Council (Council) directed staff to study issues related to banning or limiting the sale of flavored tobacco products within City limits. Specifically, the Council expressed concern regarding the effects of vaping (electronic cigarette that delivers nicotine through a liquid) on minors in the community. The City’s TRL program (Muni-code 8.14), which began in 2003 to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors, outlines the regulation of tobacco sales for tobacco retailers. This is accomplished by both license guidelines and enforcement programs by the Police Department. Tobacco Retailer Licenses are valid for one year and each tobacco retailer shall apply for the renewal of their tobacco retailer’s license prior to its expiration. Enforcement includes periodic sting operations that focus on underage tobacco sales with tobacco retailers. There were two sting operations that occurred during the past ten months, which yielded one violation. The TRL program was last amended in 2015 to prohibit the use of electronic smoking devices in all places where smoking was currently prohibited and required retailers of electronic smoking devices to obtain a TRL. In addition, the City’s municipal code regulates the sale and distribution of tobacco products (Muni-code 8.18) including language that forbids the sale of tobacco products to minors. There are approximately forty businesses within the City that have licenses through the TRL program. Federal and State Policies and Recent Actions At the Federal level, the Food and Drug Administration (FDA) recently announced its intention to regulate flavored tobacco products. If passed as proposed, the regulations would restrict the sale of flavored electronic cigarettes (e-cigarettes) to age-restricted, adult-only, in-person stores (e.g., Item 14 Packet Page 306 Flavored Tobacco Product Regulations Page 2 tobacco only stores, vape shops), and would ban flavored cigars and menthol-flavored cigarettes. These proposals would not restrict menthol-flavored e-cigarettes. A recent study shows over half of high school students who used e-cigarettes used a menthol- or mint-flavored product.1 The FDA’s final regulations may also be different than the current outlined proposals, as evidenced by the 2009 federal ruling on cigarettes that was weakened with a menthol product exemption. The intended FDA regulations may also face decreased policy efficacy with the adult-only store exemptions as previously demonstrated within the City of Oakland. When Oakland exempted adult-only stores in their flavored tobacco ban, many retailers modified their store layout or business model to meet the age restriction or “adult-only” requirement. Before their ban, Oakland had 2-5 adult-only tobacco stores, but afterward that number had increased to 45 adult-only stores. As exemplified by the City of Oakland, despite a flavored tobacco ban, the exemption of adult only stores mitigates the impacts of the ban due to ability to easily convert stores to adult-only. This is due to FDA regulations allowing entry of persons over 18 into adult-only stores, though California prohibits the sale of tobacco to persons under 21 years of age. For example, this allows persons over 18, but under 21, to enter adult-only tobacco stores in the City. By law, those stores are not allowed to sell tobacco products to persons under 21, but their presence in the store could lead to underage purchases of tobacco products should the business not properly verify their age is 21 or older. Also, the timeline for the FDA’s formal proposal is uncertain, due to Executive Order 13771. This order requires all federal executive agencies to revoke two rules for every new rule it promulgates, and also requires neutral economic costs without considering the economic benefits of the agency’s proposed action. Moreover, federal decisions regarding tobacco have historically taken several years to implement due to tobacco industry advocacy and the potential litigation. This was the case for the 2006 Department of Justice mandate demanding apology advertisements from the tobacco industry, which did not come to fruition until November 2017. At the State level, Senate Bill (SB) 38 and Assembly Bill (AB) 131 were introduced at the beginning of December 2018. Both bills propose to restrict flavored tobacco products to decrease youth access to nicotine. SB 38 would prohibit the sale or offering of any flavored tobacco product, including menthol cigarettes. The bill defines “characterizing flavor” to mean any distinguishable taste or aroma outside of the traditional taste or aroma of tobacco. The bill also states that this proposed legislation should not preempt local flavored tobacco product bans. Currently, SB 38 has passed the Senate Committee on Health and was re-referred to the Senate Appropriations Committee, set for a hearing on April 22, 2019. AB 131 would prohibit electronic smoking device manufacturers from advertising or promoting the products in ways that appeal to minors: prohibitions would include cartoons or characters popular among children, imitation of candy packaging, or using the words “candy” or “candies.” The law would apply to any electronic smoking device that delivers nicotine or other vaporized liquids.2 Currently, on January 24, 2019, AB 131 was referred to the Assembly Committee on Government Organization and a hearing has not been scheduled. 1 Cullen, K.A., Notes from the Field: Use of Electronic Cigarettes and Any Tobacco Product Among Middle and High School Students—United States, 2011–2018. MMWR. Morbidity and Mortality Weekly Report, 2018. 67. 2 American Lung Association. (January 2019). Legislative update January 7, 2019. [Fact sheet]. Retrieved from https://center4tobaccopolicy.org/wp-content/uploads/2019/01/Leg-Update-2019-01-07.pdf Item 14 Packet Page 307 Flavored Tobacco Product Regulations Page 3 Comparable Cities As of December 2018, at least 28 cities and counties in California have passed policies to restrict or prohibit the sale of flavored tobacco products. Eight of the ten most recent policies are comprehensive bans of flavored tobacco. They include flavored e-cigarettes, menthol flavored tobacco products, flavored little cigars, flavored smokeless tobacco, flavored components and accessories (such as e-juice and flavored wraps), and products marketed as flavored. The aforementioned bans come with exemptions, such as excluding adult-only stores, grandfathering existing retailers, or exempting stores more than 1,000 feet away from schools. The two most common exemptions to the 28 bans are a) excluding adult only stores (4 jurisdictions) and b) excluding menthol flavors from the ban (8 jurisdictions). Two cities, Santa Cruz and Santa Maria, both considered comparable cities to San Luis Obispo, are currently pursuing and/or implementing flavored tobacco regulations. On November 27, 2018, Santa Cruz’s City Council voted to enact a comprehensive ban of flavored tobacco products. Based on discussions with other cities who reported decreased efficacy with, and retailer complaints over, exempting only certain retailers (i.e. adult only stores), Santa Cruz opted for no exemptions. Santa Cruz did face tobacco retailer opposition to the flavored tobacco ban, with the argument being that vaping helps to transition people away from traditional cigarettes and tobacco products. Based upon discussions with staff from the City of Santa Cruz, no retailers argued that they would be forced to close their doors. Santa Cruz allowed retailers six months to liquidate their existing stock of flavored products, and an additional six months of community education and outreach before their enforcement begins. Meanwhile, the City of Santa Maria is pursuing flavored tobacco restrictions in response to community requests, but it is still in the preliminary stage of the process. Effectiveness of Similar Policies Banning flavored tobacco within a city could reduce youth access and use of tobacco products. Flavored tobacco bans are grounded in the tenant that these products (flavored e-cigarettes, cigarillos, chewing tobacco, e-juices, etc.) are most popular tobacco product among youth.3 Youth cite flavors as a primary reason for using tobacco products,4 with 81% of youth who have used 3 Ambrose BK, Day HR, Rostron B, et al. Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. Jama. 2015;314(17):1871-1873. Villanti AC, Johnson AL, Ambrose BK, et al. Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013-2014). American journal of preventive medicine. 2017. Bonhomme MG, Holder-Hayes E, Ambrose BK, et al. Flavored noncigarette tobacco product use among US adults: 2013-2014. Tobacco control. 2016;25(Suppl 2):ii4-ii13. 4 Rutten LJ, Blake KD, Agunwamba AA, et al. Use of E-Cigarettes Among Current Smokers: Associations Among Reasons for Use, Quit Intentions, and Current Tobacco Use. Nicotine & tobacco research: official journal of the Society for Research on Nicotine and Tobacco. 2015;17(10):1228-1234. 16 Farsalinos KE, Romagna G, Voudris V. Factors associated with dual use of tobacco and electronic cigarettes: A case control study. The International journal on drug policy. 2015;26(6):595-600. 17 Kong G, Morean ME, Cavallo DA, Camenga DR, Krishnan-Sarin S. Reasons for Electronic Cigarette Experimentation and Discontinuation Among Adolescents and Young Adults. Nicotine & tobacco research : official journal of the Society for Research on Nicotine and Tobacco. 2015;17(7):847-854. Item 14 Packet Page 308 Flavored Tobacco Product Regulations Page 4 tobacco starting with a flavored tobacco product.5 A policy would also aim to reduce access to tobacco specifically in retail settings, which is where a significant amount of underage purchasing occurs.6 The first comprehensive local flavored tobacco ban in California was passed by Yolo County in October 2016. As this occurred relatively recently, there are no peer-reviewed studies of the efficacy of a comprehensive flavor ban at a local level yet. However, the data from other longer- established flavor bans (i.e. FDA flavored cigarette ban and New York City flavored tobacco ban) can help predict local policy efficacy. The FDA banned flavored cigarettes (excluding menthol cigarettes) in 2009. This ban resulted in both the reduced probability of adolescents (middle and high school students) becoming cigarette smokers, and a reduction in the total number of cigarettes smoked by adolescents. However, the ban was positively associated with an increase in the adolescent smokers’ use of menthol cigarettes. Thus, while the 2009 flavored cigarette ban did achieve its objective of reducing adolescent tobacco use, the effects were likely diminished by the continued availability of menthol cigarettes and other flavored tobacco products via online outlets.7 In a peer- reviewed research article projecting the impact that a US menthol ban would have on smoking prevalence and smoking-attributable deaths, the conclusion was that that in absence of a menthol ban, smoking prevalence would decline but the percentage of those using menthol products would increase.8 New York City (NYC) prohibited the sale of all flavored tobacco products (excluding menthol products) in 2009, with enforcement beginning in 2010. The evaluation from the NYC legislation found that flavored tobacco product sales and the odds of using any tobacco products among teens declined significantly after enforcement began.9 Policy Considerations Should the Council direct staff to move forward with this issue, staff would conduct a regulatory takings analysis. Specifically, a regulatory taking is a situation in which a government regulation limits the uses of private property to such a degree that the regulation effectively deprives the property owners of economically reasonable use or value of their property to such an extent that it deprives them of utility or value of that property, even though the regulation does not formally divest them of title to it. For some businesses, that may be 5 percent of sales, while it could be higher for others. Analyzing and identifying specific findings, such as the impacts of tobacco 5Dai, H. (2018). Single, Dual, and Poly Use of Flavored Tobacco Products Among Youths. Preventing Chronic Disease, 15(6), E87. Villanti, Johnson, Ambrose, Cummings, Stanton, Rose, . . . Hyland. (2017). Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013–2014). American Journal of Preventive Medicine, 53(2), 139-151. 6 Willett, J., Bennett, M., Hair, E., Xiao, H., Greenberg, M., Harvey, E., . . . Vallone, D. (2018). Recognition, use and perceptions of JUUL among youth and young adults. Tobacco Control, 28(1), 115-116. 7 Courtemanche, C.J., Palmer, M.K., Pesko, M.F., 2017. Influence of the flavored cigarette ban on adolescent tobacco use. Am. J. Prev. Med. 52, e139–e146. https://doi.org/10. 1016/j.amepre.2016.11.019 8 Levy, D. T., Pearson, J. L., Villanti, A. C., Blackman, K., Vallone, D. M., Niaura, R. S., & Abrams, D. B. (2011). Modeling the future effects of a menthol ban on smoking prevalence and smoking-attributable deaths in the United States. American journal of public health, 101(7), 1236-40. 9 Farley, S., & Johns, M. (2016). New York City flavored tobacco product sales ban evaluation. Tobacco Control, 26(1), 78-84. Item 14 Packet Page 309 Flavored Tobacco Product Regulations Page 5 products on the youth, that counter a regulatory taking, are critical to minimizing the City’s exposure to potential litigation. Most regulatory takings challenges against tobacco control policies are centered on the argument that the proposed policy will have a negative economic impact on a business. According to the Public Health Law Center, the court typically evaluates regulatory takings claims by looking at whether the regulation has destroyed all value to the business. If the regulations do not go so far as to completely eliminate a business’s value, the court focuses on three factors: (1) the economic impact of the government action; (2) the degree to which the action interferes with reasonable, investment-backed expectations; and (3) the character of the government action. In other words, the court will weigh the economic interests of the business against the law’s goals and purpose.10 The City of Berkeley directly addressed this issue in their 2015 flavored tobacco ban by allowing retailers “engaged primarily” in the sale of e-cigarettes and e-liquids an exemption for up to three years if it made “a showing, as determined by the City Manager or his or her designee, “that [the flavor ban] would result in a taking without just compensation under either the California or the United States Constitution. ‘Engaged primarily’ for purposes of this subsection means that the sale of electronic nicotine delivery systems and e-liquids account for more than 50% of the tobacco retailer’s calendar year 2014 gross receipts.” Potential Next Steps There are several options for the Council to consider as potential next steps: 1) Public hearing only – This would involve moving forward with directly placing the introduction of an ordinance banning the sale of flavored tobacco products in the City on a future City Council agenda. This option could be accomplished in late summer or fall and can be accomplished with existing resources but would not include any public engagement or stakeholder outreach. 2) Standard ordinance amendment process – This would involve a more typical process including a study session to explore the issue in depth during a public meeting, pubic and stakeholder outreach and engagement and a public hearing with ordinance amendments based on the feedback received through the process. This process typically takes 6-9 months and would require additional resources or tradeoffs with other projects currently in process such as Funding the Future. 3) No action at this time - The Council could choose to not take action at this time and closely monitor related Federal and State policies. Attachments 1. Statewide Matrix 2. List of Tobacco Retailers in the City 10 Public Health Law Center. (2011). Tobacco Control and the Takings Clause. Retrieved from https://publichealthlawcenter.org/sites/default/files/resources/tclc-guide-tobacco-takingsclause-2011_0.pdf Item 14 Packet Page 310 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. NOVEMBER 2018 The tobacco industry has a long history of using flavored tobacco to target youth and communities of color. The majority of youth who start experimenting with tobacco begin with flavored tobacco.1 These products come in a variety of candy-like flavors including bubble gum, grape, menthol and cotton candy and include e-cigarettes, hookah tobacco, cigars, smokeless tobacco, and even flavored accessories such as blunt wraps. Since 2009, the United States Food and Drug Administration (FDA) has banned flavored cigarettes nationwide. However, this ban included an exemption for menthol flavored cigarettes and doesn't extend to non-cigarette tobacco products. There are currently no state laws in California restricting the sale of flavored tobacco products. It is up to local communities to take action to protect their youth from the lure of enticing flavored tobacco. The first community to restrict the sale of flavored tobacco in California was Santa Clara County in 2010. Since then, twenty-six communities have passed similar policies. What products may be included? 1. E-Cigarettes – Restricts the sale of flavored electronic cigarettes. 2. Menthol – Restricts the sale of tobacco products labelled as menthol, including cigarettes, smokeless tobacco, little cigars, etc. 3. Little Cigars – Restricts the sale of flavored little cigars, which are small, usually filtered cigars wrapped in brown paper containing tobacco leaf. Little cigars became a popular alternative following the FDA's ban on flavored cigarettes. 4. Smokeless Tobacco – Restricts the sale of flavored smokeless tobacco such as chewing tobacco, dip, snus and snuff. 5. Components & Accessories – Restricts the sale of flavored accessory products such as blunt wraps and e-juice additives. These products cannot be smoked alone and serve as a delivery system for smoked products. 6. Products Marketed as Flavored – Tobacco companies sometimes try to circumvent flavor restrictions by marketing products as flavored without directly labelling them as such. This policy option allows communities to broaden the definition of flavored tobacco to include these products. What exemptions are allowed? 1. Adult-Only Stores Exempted – Adult-only retailers are limited to customers who are 21 and over. This limits sales of flavored tobacco to stores that youth do not have access to. 2. Grandfathered Retailers Exempted – Allows retailers that were in operation prior to a specifed date to continue selling flavored tobacco products. 3. Limited to Youth-Populated Areas – Retailers are required to be a certain distance away from schools, parks, or other youth-oriented locations. Since many flavored tobacco products target youth, including buffer zones is a way to limit their access to flavored products. Resources The Center has additional resources on tobacco retailer licensing ordinances, plug-in policies, and ordinances restricting menthol tobacco available at: http:// center4tobaccopolicy.org/tobacco-policy/tobacco-retail- environment/ . ChangeLab Solutions has model ordinance language available for ordinances restricting flavored tobacco at: http://changelabsolutions.org. © 2013 California Department of Public Health Matrix of Local Ordinances Restricting the Sale of Flavored Tobacco Products Item 14 Packet Page 311 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 2 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Marin County Nov 2018 X X X X X X Saratoga Oct 2018 X X X X X Half Moon Bay Oct 2018 X X X X X X Portola Valley Sep 2018 X X X X X X Beverly Hills August 2018 X X X X X X Richmond July 2018 X X X X X X Sausalito July 2018 X X X X X San Mateo County June 2018 X X X X X X San Francisco June 2018 X X X X X X Mono County July 2018 X X X X X Windsor March 2018 X X**X X X Cloverdale December 2017 X X X X Fairfax December 2017 X X**X**X San Leandro Oct 2017 X X X X X Palo Alto Oct 2017 X X X X X X X Oakland Sep 2017 X X X X X X X Contra Costa County July 2017 X X X X X X X 1000 ft Los Gatos May 2017 X X X X X X X Novato Jan 2017 X X**X X X Santa Clara County Oct 2016 X X X X X X X Item 14 Packet Page 312 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 3 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Yolo County Oct 2016 X X X X X Manhattan Beach Dec 2015 X X X X X El Cerrito Oct 2015 X X*X X X X Berkeley Sept 2015 X X X X X X X 600 ft Sonoma June 2015 X X** X***X Hayward July 2014 X X*X X X X X X 500 ft 1 Ambrose, B.K., et al., Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. JAMA,2015: p.1-3. *Does not include menthol cigarettes **Exempts packages of at least 5 or more ***Doesn't apply to pipe tobacco Item 14 Packet Page 313 Active Tobacco RetailersDate: 1/10/2019Customer Number Customer Status Service Address Line 1 Service Address Line 2 Service Code Invoice Status Customer Number Customer Name Line 19517A151 N SANTA ROSAS17A9517CHEVRON STATIONS INC9514A956 E FOOTHILL BLS17A9514RITE AID #58229527A552 CALIFORNIAS17A9527SEVEN 119526A290 CALIFORNIAS17A9526CAMPUS BOTTLE SHOP9525A201 MADONNA RDS17A9525RALPHS GROCERY CO9523A204 MADONNA RDS17A9523MADONNA SHELL9520A3 SANTA ROSAS17A9520SANTA ROSA SHELL9511A774 FOOTHILLS17A9511CORK AND BOTTLE9508A692 MARSHS17A9508SEVEN ELEVEN STORE #27835C9521A11590 LOS OSOS VALLEY RDS17A9521LAGUNA LAKE SHELL9495A1291 LAUREL LANES17A9495LAUREL LANE MARKET9496A1401 OSOSS17A9496SIDEWALK MARKET9492A3180 BROADS17A9492CHEVRON STATIONS INC9489A3211 BROADS17A9489CROSSROADS LIQUOR9488A2015 BROADS17A9488BROAD STREET UNOCAL9487A2145 BROADS17A9487MANUEL'S9506A157 HIGUERAS17A950676 STATION9504A586 HIGUERAS17A9504SANDY'S LIQUOR AND DELI9503A2000 MONTEREYS17A9503COAST INVESTMENTS, INC.9500A1301 MONTEREYS17A9500SEVEN 119522A12424 LOS OSOS VALLEY RDS17A9522B N B CHEVRON9519A296 SANTA ROSAS17A9519CONICO8180A1251 JOHNSON AVES17A8180RITE AID DRUGS #582010156A973 FOOTHILL BL SUITE 104S17A10156CLOUD 9 IMPORTS8199A3550 BROAD STS17A8199VONS #23060000030909 A871 SANTA ROSA STS17A0000030909 WEIRD WILLIES II CA CORPORATION10198A1111 CHORRO STS17A10198SANCTUARY TOBACCO SHOP, THE0000027566 A3920-3 BROAD STS17A0000027566 THE CLUB SMOKE SHOP10083A2600 BROAD STS17A10083SLO QUICK STOP0000028450 A1756 MONTEREY STS17A0000028450 UNIVERSITY SPIRIT GAS & MINI MART0000025857 A11560 LOS OSOS VALLEY RD, STE S17A0000025857 LAGUNA SMOKES0000032059 A592 CALIFORNIA BLS17A0000032059 ROYAL SMOKE & VAPE0000032058 A487 MADONNA RD, SUITE 2S17A0000032058 SMOKE N VAPE INC0000030280 A158 HIGUERA ST, STE ES17A0000030280 SLO BEVERAGE N MORE INC0000025443 A254 SANTA ROSAS17A0000025443 MOLLER INVESTMENT GROUP #610311183A4021 BROAD STS17A11183EDNA VALLEY SHELL0000025270 A1502 FROOM RANCH WAYS17A0000025270 BEVERAGES & MORE0000028549 A328 MARSH STS17A0000028549 MISSION STATION INC0000025657 A2211 BROAD STS17A0000025657 MOLLER INVESTMENT GROUP #6112Page 1Item 14Packet Page 314 Ban on the sale of all Tobacco Products ~ Beverly Hills (2018) Ban on the sale of Flavored Tobacco & E-cigarettes (including online sales) ~ San Francisco (2019) Policy Approaches to Address Youth Vaping The evidence is clear that flavors play a critical role in the youth vaping epidemic: Nearly all youth e-cigarette users use flavored products and 70% cite flavors as a key reason for their use. In January 2020, the FDA released their policy proposal to address youth vaping, however, many health organizations cited this policy as a shortfall. Here's a snapshot of the policy solutions some California jurisdictions have pursued in an effort to end youth vaping. Ban on the sale of Flavored Tobacco ~ Santa Maria (2020) 50+ Cities & Counties in CA Proposed SB 793 Ban on the sale of Flavored Tobacco (except Mint/Menthol*) ~ Sonoma (2015) Ban on the sale of E-Cigarettes ~ Arroyo Grande (2020) Ban on the sale of Flavored E-cigarette Pods (except Mint/Menthol*) ~ FDA 2020 Proposal MOST RESTRICTIVE LEAST RESTRICTIVE For up-to-date information on tobacco regulation at the federal, state, and local level, contact the Tobacco Control Program at tobaccofree@co.slo.ca.us (Created 1/7/2020) *The National Youth Tobacco Survey found 63.9% of high school e- cigarette users used mint and menthol flavors in 2019. Item 14 Packet Page 315 Chapter 8.14 TOBACCO RETAILER LICENSES 8.14.010 Purpose. 8.14.020 Definitions. 8.14.030 Requirement for tobacco retailer license. 8.14.040 Application procedure. 8.14.050 Issuance of license. 8.14.060 Display of license. 8.14.070 Fees for license. 8.14.080 Licenses nontransferable. 8.14.085 Noncompliance with tobacco related laws—License violation. 8.14.090 License compliance monitoring. 8.14.100 Suspension or revocation of license. 8.14.110 Appeal of suspension and/or revocation. 8.14.120 Administrative fine—Penalties—Enforcement. 8.14.130 Severability. 8.14.010 Purpose. It is the intent of the city of San Luis Obispo, in enacting this chapter, to discourage violations of laws which prohibit or regulate the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by state or federal law are criminally proscribed or to alter the penalty provided therefor. (Ord. 1440 § 1 (part), 2003) 8.14.020 Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: Item 14 Packet Page 316 A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices, even if sold separately. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. B. “Person” means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. C. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-today operations of a business. D. “Tobacco product” means any product containing, made from, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, electronic smoking devices or any other preparation of tobacco including Indian cigarettes called “bidis.” “Tobacco product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes and is marketed and sold solely for such an approved purpose. E. “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, or tobacco products; “tobacco retailing” shall mean the doing of any of these things. F. “Licensing agent” means a city employee designated by the city administrative officer to serve in this capacity. G. “Enforcement agency” means the San Luis Obispo police department. H. “Hearing officer” means the city employee designated by the city administrative officer to serve in this 8.14.030 Requirement for tobacco retailer license. It shall be unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for each location at which that activity is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location; itinerant tobacco retailing and tobacco retailing from vehicles are prohibited. Item 14 Packet Page 317 No license will be issued to authorize tobacco retailing at any location that is licensed under state law to serve alcoholic beverages for consumption on the premises (e.g., an “on-sale” license issued by the California The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device is: (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time. Department of Alcoholic Beverage Control); tobacco retailing in bars and restaurants serving alcoholic beverages is prohibited. Licenses are valid for one year and each tobacco retailer shall apply for the renewal of his or her tobacco retailer’s license prior to its expiration. The conference of a tobacco retailer license does not confer any new rights under any other law and does not exempt any business that otherwise would be subject to the smoke-free workplace provisions within the San Luis Obispo Municipal Code and Labor Code Section 6404.5. (Ord. 1440 § 1 (part), 2003) 8.14.040 Application procedure. A. Application for a tobacco retailer’s license shall be submitted to the licensing agent in the name of each proprietor/person proposing to conduct retail tobacco sales and shall be signed by such person or an authorized agent thereof. All applications shall be submitted on a form supplied by the licensing agent and shall contain the following information: 1. The name, address, and telephone number of the applicant. 2. The business name, address, and telephone number of each location for which a tobacco retailer’s license is sought. 3. Such other information as the licensing agent deems necessary for enforcement of this chapter. 4. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation. (Ord. 1440 § 1 (part), 2003) 8.14.050 Issuance of license. Upon the receipt of an application for a tobacco retailer’s license, the licensing agent shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a person or at a location for which a suspension is in effect pursuant to Section 8.14.100 of this chapter; or Item 14 Packet Page 318 C. The application seeks authorization for tobacco retailing in an area that is in violation of city zoning pursuant to Title 17 of this code or that is unlawful pursuant to any other local, state, or federal law. (Ord. 1440 § 1 (part), 2003) 8.14.060 Display of license. Each license shall prominently display the license in a public place at each location where tobacco retailing occurs. (Ord. 1440 § 1 (part), 2003) 8.14.070 Fees for license. The fee for a tobacco retailer’s license shall be established by resolution of the city council of the city of San Luis Obispo. The fee shall be calculated so as to recover the total cost, but no more than the total cost, of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violation, and prosecution of violators. The fee for tobacco retailer’s license shall be paid to the licensing agent. (Ord. 1440 § 1 (part), 2003) 8.14.080 Licenses nontransferable. A tobacco retailer’s license is nontransferable. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. (Ord. 1440 § 1 (part), 2003) 8.14.085 Noncompliance with tobacco related laws—License violation. Compliance with all local, state and federal tobacco-related laws shall be a condition of a city tobacco retailer license and it shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state or federal tobacco-related law. (Ord. 1473 § 1, 2005) 8.14.090 License compliance monitoring. Compliance with this chapter shall be monitored by the San Luis Obispo police department. At least four compliance checks of each tobacco retailer shall be conducted during each twelve-month period. The cost of compliance monitoring shall be incorporated into the license fee. (Ord. 1440 § 1 (part), 2003) 8.14.100 Suspension or revocation of license. A. In addition to any other penalty authorized by law, a tobacco retailer’s license may be suspended or revoked if the city finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has violated the conditions of the l icense imposed pursuant to this chapter. 1. Upon a finding by the city of a first license violation within any five-year period, the license shall be suspended for thirty days. 2. Upon a finding by the city of a second license violation within any five-year period, the license shall be suspended for ninety days. Item 14 Packet Page 319 3. Upon a finding by the city of a third license violation within any five-year period, the license shall be suspended for one year. 4. Upon a finding by the city of a fourth license violation within any five-year period, the license shall be revoked. B. A tobacco retailer’s license shall be canceled if the city finds, after notice and opportunity to be heard, that one of the following conditions exists. The revocation shall be without prejudice to the filing of a new application for a license. 1. The application is incomplete for failure to provide the information required by Section 8.14.040. 2. The information contained in the application, including supplemental information, if any, is found to be false in any material respect. 3. The application seeks authorization for a license for tobacco retailing that is unlawful. (Ord. 1440 § 1 (part), 2003) 8.14.110 Appeal of suspension and/or revocation. A. A decision of the city to revoke or suspend a license is appealable to a hearing officer and must be filed with the hearing officer at least ten working days prior to the commencement date of the license suspension or revocation. An appeal shall stay all proceedings in furtherance of the appealed action. Following appeal, the decision of the hearing officer may be appealed to the city administrative officer or his or her designee. A decision of the city administrative officer or his or her designee shall be the final decision of the city. B. During a period of license suspension, the tobacco retailer must remove from public view all tobacco products. (Ord. 1440 § 1 (part), 2003) 8.14.120 Administrative fine—Penalties—Enforcement. A. Any violation of the provisions of this chapter by any person is a misdemeanor and is punishable as provided in Chapter 1.12, Section 1.12.030 of this code. Any violation of the provisions of this chapter by any person is also subject to administrative fines as provided in Chapter 1.24 of this code. B. If the city of San Luis Obispo finds, based on substantial record evidence, that any unlicensed person has engaged in tobacco retailing activities in violation of Section 8.14.030 of this chapter, the city shall fine that person as follows. Each day that an unlicensed person o ffers tobacco, tobacco products or tobacco for sale or exchange shall constitute a separate violation and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A) of this code. C. Violations of this chapter are hereby declared to be public nuisances. Item 14 Packet Page 320 D. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the city attorney, including but not limited to administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (Ord. 1440 § 1 (part), 2003) 8.14.130 Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this chapter or the rules adopted hereby. The city council of the city of San Luis Obispo hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. (Ord. 1440 § 1 (part), 2003) Item 14 Packet Page 321 Page intentionally left blank. Item 14 Packet Page 322 Department Name: Parks and Recreation Cost Center: 7001 For Agenda of January 21, 2020 Placement: Business Estimated Time: 60 Minutes FROM: Greg Avakian, Parks and Recreation Director Prepared By: Andrew Harris, Management Fellow Lindsey Stephenson, Recreation Manager SUBJECT: AMENDMENT TO PUBLIC ART POLICY AND PROCEDURES MANUAL RECOMMENDATION Adopt a draft Resolution (Attachment A) amending the City’s Public Art Policy and Procedures Manual. DISCUSSION Background Twenty-nine years ago, the City Council established and funded a public art program through Resolution No. 6811 (Attachment B). In 2019, the City enjoys a robust public art program with 104 public art pieces in the current Public Art Inventory (Attachment C), including permanent public art pieces located throughout the community as well as the utility box art program as “temporary” public art installations. The City’s current Public Art Program and Policy and Procedures Manual (Attachment D) outlines the processes in which the public art program is funded, criteria for evaluating and selecting public art, and the Advisory Body review guidelines. At this time, the City’s public art inventory does not have any specific "named" persons in the form of a memorial or monument. It does however have several projects that are representative of important historical eras or concepts. Some of these projects include: “Tequski Wa Suwa” recognizes the Chumash Tribe, with a bear and child in the Mission Plaza and “Gandy Dancers” Iron Road Pioneers acknowledges the California Chinese railroad workers at Railroad Square roundabout and “Garnet” is an abstract depiction of a breast cancer survivor located on Higuera Street (between Broad and Nipomo). These projects, as all public art does, met the City design guidelines and followed the Public Art approval process including review by a Public Art Jury, Architectural Review Commission and the City Council. Council Direction and Study Session of Monument Policy On February 5, 2019, Council directed staff to research a potential monument policy. On July 16, 2019, staff returned to Council for a Study Session (Attachment E) on the monument policy research. By majority consensus, Council directed staff to develop policies that public art shall commemorate ideas, ideals, and concepts, not individual Item 15 Packet Page 323 people. In addition, as noted in the minutes (Attachment F) Council directed staff to include the City’s vision of diversity and inclusivity into the Public Art Policy. Public Art Policy Amendment With this Agenda Report, staff recommends amending the Public Art Program and Policy and Procedures Manual (Attachment G) consistent with Council’s direction. The changes proposed are specifically highlighted in Attachment H. There are four substantive changes listed below in the order they appear in the document: 1. The proposed amendment adds language into the introduction on the City’s vision of diversity and inclusivity, in accordance with the Council’s direction. 2. The proposed amendment removes the language discussing the differences between public art and conventional treatments and ornamentation. This change is made to remain consistent and eliminate the redundancy with the new definitions section (see number 4 below). 3. The proposed amendment adds language into the definitions stipulating that public art may commemorate ideas, ideals and concepts, but not the depiction of individual and actual persons, in accordance with the Council’s direction. 4. The proposed amendment includes the definitions of public art from Resolution No. 6811 and incorporates them into the manual. This helps increase the clarity and specificity of the Policy and Procedures Manual. Policy Context The City’s current public art policy is set forth in Resolution No. 6811. The guidelines for publ ic art and project approval process, including the Public Art Jury, Architectural Review Commission and City Council, are set forth in the Public Art Program and Policy and Procedures Manual, last updated in June of 2017. Public Engagement Following the study session on July 16, 2019 staff drafted the proposed amendment in accordance with the majority consensus provided by Council; in preparation for the Council meeting on January 21, 2020, email correspondence on this topic, date, time and location have been sent to individuals and groups who have expressed interest in changes to the Public Art Policy. Additionally, staff contacted and provided a link to the Agenda Report to Arts Obispo, the Chamber of Commerce, Downtown SLO, the Architectural Review Commission, Cultural Heritage Committee, Parks and Recreation Commission and posted the Agenda Report on the City’s website. The public will have the opportunity to provide comment either in writing prior to the Council meeting or in person as part of the public Council meeting. Item 15 Packet Page 324 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a "Project" under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-21 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 $ There is no fiscal impact associated with the update to the City’s Public Art Policies. Staffing: Tradeoffs on workload may be required in the Parks and Recreation Public Art, Community Services, or Youth Services Divisions to be established at supplement, dependent on Council direction. It is not anticipated that the recommendation or proposed alternatives would require additional staffing workload. ALTERNATIVES 1. The City Council could make changes to proposed Public Art Policy amendment. Council could direct staff to modify and/or delete portions of the proposed amendment to the public art policy. 2. Do not approve any proposed Public Art Policy changes . The City Council could decide to not approve the public art policy amendment. The Public Art Policy remains unchanged, last updated June 2017. Item 15 Packet Page 325 Attachments: a - Draft Resolution b - Resolution 6811 (1990 Series) Adopting a Visual Arts in Public Places Program c - Public Art Inventory List - 2019 d - COUNCIL READING FILE - Public Art Policy - June 2017 e - COUNCIL READING FILE - Council Agenda Report July 16, 2019 f - COUNCIL READING FILE - Minutes of July 16, 2019 g - Amended Public Art Policy - Jan 2020 h - Highlighted Amendments to Public Art Policy Item 15 Packet Page 326 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE PUBLIC ART POLICY AND PROCEDURES MANUAL WHEREAS, the City Council of the City of San Luis Obispo adopted resolution No. 6811 (1990 Series) formally establishing a public art program; and WHEREAS, the City of San Luis Obispo’s Public Art Policies and Procedures Manual (Public Art Policy) outlines the process under which the public art program is funded, and how art pieces are evaluated, reviewed and selected; and WHEREAS, on February 5, 2019 City Council directed staff to research monument policy and gather information for a study session to be presented to City Council for further consideration; and WHEREAS, on July 16, 2019 staff presented a report to City Council, offering comparative research analysis of monument policies; and WHEREAS, City Council directed staff to develop policies that public art shall commemorate inclusivity, diversity, ideas, ideals and concepts not individual people to be add to the existing public art policy; and WHEREAS, in preparation for the Council meeting on January 21, 2020, community outreach on this topic, date, time and location have been sent to individuals, groups and intereste d parties . This community engagement includes Arts Obispo, the Chamber of Commerce, Downtown SLO, the Architectural Review Commission, Cultural Heritage Committee, and Parks and Recreation Commission; and WHEREAS, on January 21, 2020, staff presented City Council with an amendment to the Public Art Policy, reflecting the values of inclusivity and diversity and incorporating policies that public art shall commemorate ideas, ideals and concepts not individual people; and WHEREAS, this amendment does not constitute a "Project" under CEQA Guidelines Sec. 15378. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1: Recitals. The above recitals are true and correct and are incorporated herein by this reference. Item 15 Packet Page 327 Resolution No. _____ (2020 Series) Page 2 SECTION 2. The “Introduction” section of the City of San Luis Obispo Public Art Policy is hereby amended to read as follows: What is Public Art? Public Art develops from the engagement of an artist with public space. Within the realm of creating public art, artists encounter people, history, and process. The resulting artwork represents the diverse response to those factors by individual artists, leaving the questi on, “what is public art?” It's easier to describe what public art isn’t. Fancy "off-the-shelf" benches, fountains, and trash receptacles; upgraded tile, paving, or other conventional architectural finishes and ornamentation; standard landscaping; architectural lighting; and other similar treatments which do not involve original, creative work by an individual or group are not normally considered public art. For example, purchasing a pre-fabricated fountain and installing it in a park would be landscaping but not public art, since the piece is a stock item and its design does not necessarily involve an original or creative effort. However, if the fountain included an original ceramic or bronze sculpture, tile mosaic, or other original or creative feature it could be considered public art. The artwork doesn't necessarily have to be one-of-a-kind, or designed only for that location -- it could be one of a limited series of castings (in the case of sculpture) that has been thoughtfully integrated with a project. The boundary between architectural ornamentation and art is not always clear. For example, in decorating a blank wall of a parking garage with a series of metal screeds and painted wall panels, the architect's effort might be considered public "art" if it were an original work, went beyond typical or stock architectural treatment, and met the city's public art guidelines. The City is driven to encourage Public Art that respects our past and embraces the future; supporting all members and facets of the community and not in contradiction with its core values: civility, sustainability, diversity, inclusivity, regionalism, partnership and resiliency. The City of San Luis Obispo strives to incorporate these values into public spaces through the proliferation of public art. Definitions 2. The City shall accept a “Work of Art” that commemorates ideas, ideals and concepts – not individual and actual people. Item 15 Packet Page 328 Resolution No. _____ (2020 Series) Page 3 3. "Visual Art in Public Places' or "Public Art" means any visual work of art displayed in a publicly visible location: (a) in a City-owned area, (b) on the exterior of any city- owned facility, ( c) within any city-owned facility in areas designated as public area, lobbies, or public assembly areas, or (d) on non-city-owned property if the work of art is installed or financed, either wholly or in part, with city funds or grants procured by the City; and if on private property, secured by a public art agreement between the City and the landowner. 4. "Work of Art” includes, but is not limited to, sculpture, monument, mural, fresco, bas- relief, mobiles, photography, drawing, handcrafts, painting, fountain, landscape composition, banners, mosaic, ceramic, weaving, carving, and stained glass. "Work of art" is the creative result of individual or group effort, and is either unique or of limited- issue nature, and is normally not mass-produced or intended primarily for a commercial market. Work of art" does not normally include landscaping, paving, architectural ornamentation, or signs as defined by Chapter 15.40 of the Municipal Code. 5. "Capital Construction Project” means any project listed in the City's Financial Plan Capital Improvement Program, and paid for wholly or in part by the City of San Luis Obispo for public benefit. "Capital construction project" includes, but is not limited to building construction, addition, and remodel; parks; plazas; creek improvements and flood protection projects; bridges; streets, sidewalks, bikeways, trails other public transportation improvements; parking facilities, and similar public facilities as determined by the Community Development Director. 6. Construction Cost means the cost in dollars, as approved by the City Council or the City Administrative Officer, to construct a project. "Construction Cost" shall not include land acquisition, design, operation, or maintenance costs. 7. Eligible Project means a capital construction project which is not exempt under the provisions of this resolution, or by City Council or City Manager action. SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Public Art Policy is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Public Art Policy, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. Item 15 Packet Page 329 Resolution No. _____ (2020 Series) Page 4 SECTION 4. This Resolution shall become effective February 4, 2020. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ____________ day of __________________________, 2020. ____________________________________ Teresa Purrington City Clerk Item 15 Packet Page 330 ' ...-· • RESOLUTION NO. 6811 (1990 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING A VISUAL ARTS IN PUBLIC PLACES PROGRAM BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Title and Content. The City Council hereby adopts the "Visual Arts in Public Places" program as described in Exhibits "A" and "B" of the Community Development Department staff report dated May 1, 1990. SECTION 2. Definitions. For the purposes of this resolution, the following terms are defined as follows: (1) "Visual Art in Public Places' or "Public Art" means any visual work of art displayed in a publicly visible location: (a) in a City-owned area, (b) on the exterior of any city-owned facility, (c) within any city-owned facility in areas designated as public area, lobbies, or public assembly areas, or (d) on non-city- owned property if the work of art is installed or financed, either wholly or in part, with city funds or grants procured by the City; and if on private property, secured by a public art agreement between the City and the landowner. (2) “Work of Art” includes, but is not limited to, sculpture, monument, mural, fresco, bas-relief, mobiles, photography, drawing, handcrafts, painting, fountain, landscape composition, banners, mosaic, ceramic, weaving, carving, and stained glass. "Work of art" is the creative result of individual or group effort, and is either unique or of limited-issue nature, and is normally not mass-produced or intended primarily for a commercial market. “Work of art” does not normally include landscaping, paving, architectural ornamentation, or signs as defined by Chapter 15.40 of the Municipal Code. (3) "Capital Construction Project” means any project listed in the City's Financial Plan Capital Improvement Program,and paid for wholly or in part by the City of San Luis Obispo for public benefit. "Capital construction project" includes, but is not limited to building construction, addition, and remodel; parks; plazas; creek improvements and flood protection projects; bridges; streets, sidewalks, bikeways, trails other public transportation improvements; parking facilities, and similar public facilities as determined by the Community Development Director. (4) Construction Cost means the cost in dollars, as approved by the City Council or the City Administrative Officer, to construct a project. "Construction Cost" shall not include land acquisition, design, operation, or maintenance costs. Item 15 Packet Page 331 Resolution No. 6811 (1990 Series) Page 2 (5) Eligible Project means a capital construction project which is not exempt under the provisions of this resolution, or by City Council or City Administrative Officer action. SECTION 3. Environmental Determination. After City Council review and consideration, the Community Development Director's decision to grant a negative declaration pursuant to the City Environmental Procedures and the California Environmental Quality Act is hereby affirmed. SECTION 4. Percent For Art. One percent (1%) of the total approved construction cost of eligible capital construction projects shall be expended for the design and installation of public art. SECTION 5. Responsibility For Implementation. The Community Development Director is responsible for administering the program. City departments responsible for the planning, design, and construction of eligible capital construction projects shall include public art in their projects,or shall otherwise meet the requirement through allocation of funds to the Public Art Program as described in Section 6. SECTION 6. Public Art Program. (1) Small capital construction projects, or projects in which the City Council or City Administrative Officer determines that it is not feasible or desirable to include public art due to site limitations or the project's location or design, may meet this requirement through allocation of one percent (1%) of their construction cost as an in-lieu contribution for citywide public art; (2) The Finance Director shall establish and maintain a Public Art Program in the Capital Improvement Plan for such a purpose; and (3) Program funds shall be used for the design, fabrication, and installation of public art, pursuant to the Visual Arts in Public Places Program, Exhibits "A" and "B". Item 15 Packet Page 332 Resolution No. 6811 (1990 Series) Page 3 SECTION 7. Exempt Projects. The following types of projects are exempt from this percent for art requirement: (1) Utility projects, such as public water or sewer system improvements, pumps, and wells; (2) Underground projects, such as storage tanks and storm drains and similar items; (3) The City Council or the City Administrative Officer may exempt other projects from this requirement upon finding that: (a) installation of public art would be detrimental to public health, safety, or welfare; (b) the project is not suitable for the inclusion of public art; or is not visible by, used by, or accessible to the public; or (c) The project is itself a public art project. SECTION 8. San Luis Obispo County Arts Council. The San Luis Obispo County Arts Council shall assist the City by evaluating the technical and artistic merit of proposed public art projects by forwarding its comments to the Community Development Director or Architectural Review Commission. This is recognized as an appropriate function for the Arts Council, a non-profit agency, and no City funding is allocated for this advisory service. SECTION 9. Program Evaluation. The City Clerk shall schedule the public art program for Council review within one year of the date of this resolution. At such review, the Council may modify or suspend the pro . g . ra . m. On motion of Councilman Roalman, seconded by Councilwoman Pinard, and on the following roll call vote: AYES: Councilmembers Roalman, Pinard, Rappa, Reiss, and Mayor Dunin NOES: NONE ABSENT: NONE Item 15 Packet Page 333 · Resolution No. 6811(1990 Series) Page 4 the foregoing resol u tion was passed and adopted t his 15th day of -----'Ma -------------'' 1990. '-" ,,,.--. - 11!!:,d..le!"'.--cc:...-.._.---·.\.. MayorKon Dunin ATTEST : . ,,... • • • * • * • * • • • • Item 15 Packet Page 334 Resolu tion No. 6611 (1990 Series) Page 5 Financtbirector / • D/jh/ pub art5.wp epa rtment Item 15 Packet Page 335 - . .. . . .. . . . . ) • 1 11111111111111111111\IHIIIII\\III\ city o · . san lUIS OBISPO ; VISUAL ARTS IN PUBLIC PLACES PROGRAM I. PROGRAM GOALS AND OBJECTIVES A. Goals The City of San Luis Obispo Shall: 1. Preserve and enrich the community's environmental quality by encouraging visual arts in public places for both public and private development. 2. Foster public art to enhance San Luis Obispo's character. 3. Promote opportunities for public participation in and interaction with public artworks and artists. 4. Expand access to the arts for residents and visitors, with special attention to the needs of under-served audiences, such as children. low-income families, senior citizens, and disabled persons. 5. Support a diversity of public art styles, media, programs, and artists through its matching grants program for public art. 6. Encourage public artworks which celebrate and reaffirm the community's historical, socio-cultural, and aesthetic values, and which provide a sense of continuity for future generations. 7. Expand citizen awareness and appreciation of the visual arts as a key part of the community's identity and quality of life. B. Objectives To achieve these goals, the city will: 1. Strongly encourage the inclusion of visual arts in new public and private development projects in the PF, 0, C-C, C-R and C-T zones through its development review process. 2. Evaluate, and where appropriate, revise its General Plan. Zoning and Subdivision Regulations and othei:pertinent policies.and standards to provide incentives for and remove obstacles to public art. .· . ·· . . . : .· . .(· t ·. :. ..; - .. . • Item 15 Packet Page 336 . . , r · \.,, '-._,! Visual Arts in Public Places Program Page 2 3. Develop and implement, in conjunction with San Luis Obispo County Arts Council, administrative policies for public art acquisition, administration, funding and long-range planning. 4. Expand the range and depth of financial support sources for the visual arts, including the possibility of using a portion of an increase in transient occupancy tax or sales tax to support "public arts programs•. 5. Include funding for public art planning and development in the city's Capital Improvement and Capital Reinvestment Programs where feasible, including an on-going matching grant fund for public art. 6. Include public art innew capital projects such as parks, city buildings, public plazas and major street projects; and allocate at least 1percent of total capital construction costs for the installation of public art. II. GUIDELINES FOR PUBLIC ART Art eludes precise definition or regulation. Art in public context, unlike art in private collections or museums, is linked to the community in complex ways. It both shapes and reflects the community's perception of itself - its character and its values. And it must address and respond to a wider audience than art in museums or private collections. Recognizing this difference, cities and counties have developed various guidelines to encourage the widest possible range of artistic expression, while ensuring that artworks express the community character and values, and meet reasonable criteria applicable to other types of "development projects". The following guidelines will help artists, citizens, commission and council members and staff understand the city's expectations for public art. They are not intended to unduly restrict creative expression, or limit the types of public art possible. Rather, they are intended to achieve the best possible mating of site and artwork, and guide what is essentially a form of.communication between the artist and the community. They are interpreted by the City Council and the Arcbite¢iral Review Commission, with technical and procedural assistance from the San Luis Obispo County Arts Council. 1. Public art shall be located within the public right-of-way, or shall otherwise be easily visible or accessible from a public right-of-way. . - ..' 2. The design and placement of public art shall not impede pedestrian or vehicle traffic, or conflict with public or private easements. 3. Public art shall be compatible with the immediate site and neighborhood in terms. of architectural scale, materials, land use and the site's historical and environmental cont. . ..'.·,. . . • Item 15 Packet Page 337 . ) Visual Arts in Public Places Program Page 3 4. Public art shall be integrated with the site, and include landscaping, lighting, interpretive information, and other amenities where appropriate. S. Permanent public art shall be constructed of durable, high-quality materials and require minimal or no maintenance . Temporary public art shall be constructed of materials appropriate to its duration of public display. 6. A wide variety of artistic expression is encouraged. Expressions of profanity, vulgarity, or obvious poor taste are inappropriate. 7. Artwork shall reflect a high level of artistic excellence. 8. Public art shall not directly or indirectly cause adverse environmental effects, or otherwise jeopardize public health, safety or welfare. III. CRITERIA FOR MATCHING GRANT FUNDING The city has established a matching grant fund to encourage public art. For every dollar of private investment, the City Council may match the expenditure on a dollar-for-dollar basis. Public art projects receiving matching funds should provide a clear public benefit and advance the city's public art goals.' To achieve this, the city has developed special review criteria. Projects seeking matching grant funds will require City Council approval, as described in Section IV below. The council will use the following criteria inevaluating funding requests: 1. 2. 3. 4. 5. 6. 7. .8.• Artwork shall be located 1) on publicly owned property or right-of-way, or 2) on private property if the artwork is secured through a public art easement. Artwork should promote the city's Goals and Objectives for Public Art. The applicant has demonstrated sufficient experience and ability to successfully complete the public art project. Projects which make creative and efficient use of r,urces will be given preferenc e. ' Artwork shall be consistent with the city's Public Art Guidelines. Artwork designed and/or sponsored by a San Luis Obispo county resident, business or organization will be given preference. The City shall be named as an additional insured and indemnified during construction and installation of the public artwork. . Permanent artwork receiving city filnds hall become City property• ·,, . . ..' . .. ·-. . e Item 15 Packet Page 338 .. . ,. Visual Arts in Public Places Program Page 4 IV. PUBLIC ART REVIEW PROCESS Public art projects shall be reviewed according to the chart shown in Exhibit "B". All public art shall require review and approval by the City's Architectural Review Coromis. ion, except . for those public art projects determined by the Community Development Director to be minor or incidental. Hearing, notice and ap procedures shall be as provided for architectural review, Chapter 2.48 of the Municipal Code. Public art in major City capital projects, or public art projects for which matching city funds are requested, shall require City Council approval. The San Luis Obispo County Arts Council will assist the City inthe review of public art. A subcommittee of the Arts Council will, on request by the City, evaluate artworks on their technical and artistic merits, and make recommendations to the Architectural Review Commission and City Council. V. INCENTIVES FOR PUBLIC ART To promote the inclusion of public art in both public and private projects, the City shall undertake, as appropriate, the following actions to implement the Visual Arts in Public Places program: 1. Waive processing and permit fees for public art projects. 2. Increase matching grant funding or allow unused grant funds to accrue from one budget cycle to the next. 3. Consider allowing density bonuses or height exceptions to projects which include public art tied to open space at ground level. For example, a project which included sculpture and mini.plaza might receive height or coverage exception to allow additional floor area comparable to the area devoted to public art. 4. Work with the county and state to explore possible tax incentives for public art. 5. Revise setback regulations (Section 17.16.020) to allow nublic art within setba,ck areas, with provision allowing direction discretion to require use penriits for large artworks, or for those whose placement lmay have solar, traffic or environmental impacts. 6. aarlfy Sign Regulations relative to public art. 7. Minimize public review time by waiving construction permit requirements, where allowed by law, for most types of public art, including: temporary artworks, projects which do not involve significant structural work, and projects which do not affect public health or safety (e.g., tile mural. or bas· relief on existing wall); arid by allowing over the-counter construction permits . ' . . "· ' ' . :'. .··.. . ... '., ·, _. ; - ' ' ' I. • ..•:, :.'.' ··· , • . ( .. Item 15 Packet Page 339 . • • •'t • • •.• • Visual Arts in Public Places Program Page 5 for all but structurally complex artworks. 8. Consider allowing public art to meet a portion of the total required common open space in condominium projects. 9. Redefine "structure• in the Zoning Regulations (Section 17.04.410) so that public artworks are excluded for determining setbacks or building/lot coverage. VI. ADDITIONAL TASKS These are additional tasks to be completed as part of a comprehensive public art program, listed in the recommended order of implementation: 1. Establish Administrative Procedures - In addition to public art policies established by the City Council, administrative procedures are needed to support the overall goals of the program. These would include: artist selection procedures, community involvement, interagency cooperation, contract preparation, art collection management guidelines, insurance and liability, and conflict resolution. 2. Artist Involvement • The ARC is the primary City advisory body charged with reviewing public art. To assist the ARC in its role, at least one member of the commission should be an artist, or have a strong background in the visual arts. This would help commissioners understand art issues, and provide the technical expertise to understand public art media, techniques, and design implementation. 3. Public Art Brochure - To assist community groups, developers, and citizens, the City will prepare a brochure which explains the public art program: goals and objectives, matching grant funding, and the design review process. The brochure would be made aable through the Arts Council, and at the City Community Development and Engineering Departments. 4. Education Program • The success of pu blic art is measured largely by the community's understanding of an and !!,ppreciation for this art form as a cultural resource. To promote such understanding, the City will help sponsor an educational program which may include:public art activities in elementary school classes, occasional articles on public art in the SW Newsletter, San Luis Obispo City/County Ubnuy displays, and,promotion of public art among civic organizations. s. Program Evaluation • The public art program should be evaluated on a regular basis, initially one year after adoption (on or before May 15, 1991), and then every 2 years, in conjunction with the city's budget cycle. The written evaluation would describe the status of public art projects, evaluate policies and procedures,·an4 5.uggest cha.t;ages to the program,.as appropriate. . . . . . ' ' . .; ·. :.. . . . , .,,···i.t*'*'·*.*'··.··:·· . .· '. .. . . .';• ' , . ,. ·.: . : ·-:':., ;:·,:/ ,:::···"' •' ··: • Item 15 Packet Page 340 City of San Luis Obispo Public Art Inventory List Map No. Permanen t Temporar y Public Art Piece Artist(s) Year Location Art Type Cost 1 P Tequski Wa Suwa (Child & Bear), Qiqsmu (Bear Cubs) & Yach Ka (Steelhead Trout) Paula Zima 1988, 2004, 2005 Mission Plaza Sculpture $25,465 $15,000 $5,100 2 P Concrete Jungle Jed Joyce and John T. Jones 2015 SLO Skate Park (1050 Oak St) Sculpture $240,000 3 P Ironroad Pioneers Elizabeth McQueen 2002 Railroad Square Round-About (Railroad Ave) Sculpture $110,000 4 P Perpetual Hope Allen Root 2007 Mitchell Park (Osos St @ Pismo) Sculpture $21,750 5 P Chumash Pictographs Jim Jacobson 1999 Creek walk @ Broad Street Sculpture $17,600 (1 of 3) 6 P Metal Amphitheater Backdrop Jim Fickes 1980 Mission Plaza Amphitheater Sculpture $15,000 7 P Movimiento Mundial Robert Maja 2013 SLO County Library (Palm Street) - Interior Mural 8 P Love and Double Joy Peter Ladochy 1997 Palm Street Parking Structure (Exterior) (Parking Lot facing Chorro) Tile $16,500 9 P Bee Bee Works His Magic Carol Paulson, Stephen Plowman 2008 SLO Little Theater (Morro St @ Palm St) Sculpture $19,000 (matching grant) 10 P Magic Sister Carol Paulson, Stephen Plowman 2002 Pacific St @ Morro St (Exterior) Sculpture $39,840 11 P Bonding Dance Alan Riggle 2002 Marsh Street Parking Structure Garage Expansion (Exterior) Sculpture $15,000 12 P Downtown Points of Interest Tres Feltman 2002 Marsh Street Parking Structure (Corner of Chorro) Sculpture Downtown Association 13 P Hey Diddle, Diddle Sandra Kay Johnson 2003 Marsh St (@ Chorro St) Sculpture $5,000 14 P Puck Elizabeth McQueen 2003 Downtown Courtyard (Marsh St between Chorro & Morro) Sculpture $85,000 15 P Sycamore Theme Mark Jepson, Randy Augsburger 2001 *Relocated. In Storage at Corp Yard Sculpture $10,000 16 P Sycamore & Budding Thistle Jim Jacobson 1999 Creek Walk @ Broad Street Sculpture (2 of 3) 17 P Fish Life Jim Jacobson 1999 Creek Walk @ Broad Street Sculpture (3 of 3) 18 P Tankhead Fish (Replacement) Randy Augsburger 1996 Creek Walk Sculpture $900 19 P Garnet Kate Britton 2002 Higuera St (Between Broad & Nipomo) Sculpture $50,000 (installed for $2,900) Item 15 Packet Page 341 City of San Luis Obispo Public Art Inventory List Map No. Permanen t Temporar y Public Art Piece Artist(s) Year Location Art Type Cost 20 P Web of Life Sandra Kay Johnson 2000 Creek walk (At Corners of Nipomo St & Higuera St) Sculpture $20,000 21 P Flames of Knowledge Jim Jacobson 1998 Emerson Park (1341 Nipomo St) Sculpture $8,000 22 P Tankhead Fish John Augsburger 1977 Cheng Park (Santa Rosa @ Marsh) Sculpture $2,500 23 P Minoan Tribute Sandra Kay Johnson 2000 Utilities Dept Bldg (879 Morro St) Stained Glass $8,000 24 P Seven Sisters Railing Jim Jacobson 2000 Santa Rosa Street (Between Pacific & Marsh) Functional Art $1,500 25 P Cheng Park Alice LohHang Zhou 2007 Santa Rosa St (@ Marsh St) Pocket park 26 P Vehicles of SLO County Michelle Griffoul 1990 Marsh Street Parking Structure (Chorro St) Sculpture $9,000 27 P The American Spirit Jim Jacobson, Will Carlton & Erick Wand 2003 Palm Street (In Front of City Hall @ Osos) Sculpture $18,000 28 P Court of Historic Flags Bob Nichols 1997, relocated in 2007 Palm Street Parking Structure (919 Palm St) Tile donated 29 P Community's Bridge Allen Root (Ferromobius) 2000, relocated in 2007 Emerson Park (1341 Nipomo St) Functional Art $33,730 30 P Strong Play Ethic Carol Paulsen, Stephen Plowman & Stephen Van Stone 2005 Damon-Garcia Sports Complex (Industrial Way) Sculpture $39,000 31 P Roots and Wings Michael Laboon 2007 SLO Swim Center Southwood Dr) Tile $27,000 32 P Bequest Brian Chessmar 2010 Monterey Street @ Buena Vista Ave Sculpture $88,000 33 P Icons of an Era Jim Trask 2006 Railroad Square (Railroad Ave @ Freight Warehouse)) Sculpture $24,000 34 P Reflections of Another Time Mark Jepson 2004 Ludwick Community Center (864 Santa Rosa St) Interior Mural Montages $17,500 35 P Oh Great Spirit Nell Banister Scruggs 2011 Entrance of Bill Roalman Trail (Prado Road @ S. Highera) Sculpture Donated (Valued at $90,000) 36 P Roots of the Community Joshua Wiener 2013 Meadow Park Community Garden (South Street) Sculpture $95,000 Item 15 Packet Page 342 City of San Luis Obispo Public Art Inventory List 37 P Standing Tall (WTC Memorial) Kathleen Caricof 2015 Fire Station #1 (1260 Santa Barbara St) Sculpture $65,000 38 T Subaqueous (#1) Joe Bachelor 2010 Marsh @ Morro Box Art Mural $1,800 39 T Musical Eclecticism (#2) Joe Bachelor 2010 Higuera @ Morro Box Art Mural $1,800 40 T The Hummingbird Effect (#3) Joe Bachelor 2010 Monterey @ Morro Box Art Mural $1,800 41 T Birds of Whimsy (#4) Jeff Claassen 2012 Broad @ Marsh Box Art Mural $1,800 42 T Spooners (#5) Charlie Clingman 2012 South St @ Broad Box Art Mural $1,800 43 T There's No Place Like Home #6 Jacaranda Deco #6 Alister Dippner Elizabeth Hudson 2012 (deaccessio ned in 2016) 2016 Broad @ Pismo Box Art Mural $2,200 $1,600 44 T Secret Kelp Forest (#7) Colleen Gnos 2010 Santa Rosa @ Palm Box Art Mural $2,200 45 T Seven Treasures Strata (#8) Marcia Harvey 2010 Marsh @ Santa Rosa Box Art Mural $2,200 46 T Hedge (#9) Marcia Harvey 2010 Osos @ Pismo Box Art Mural $2,200 47 T Trout (#10) Marcie Hawthorne 2010 Mission Plaza @ Chorro Box Art Mural $1,800 48 T Koi Joy (#11) Marcie Hawthorne 2010 Chorro @ Palm Box Art Mural $1,800 49 T Signature Birds of SLO (#12) Marcie Hawthorne 2012 2016 Repair South St @ S. Higuera Box Art Mural $1,600 ($800 Repair) 50 T Dogs About Town (#13) Frankel and Hawthorne 2012 Santa Barbara St @ Morro Box Art Mural $2,200 51 T Mariachi SLO (#14) Frankel and Hawthorne 2012 Grand Ave @ Monterey Box Art Mural $2,200 52 T The Flight of the Monarchs (#15) Lynn Hessler 2010 Higuera @ Osos Box Art Mural $1,800 53 T Topographical Abstraction (#16) Justin Johnson 2010 Higuera @ Chorro Box Art Mural $1,800 54 T Levitating Cube (of Swiss) (#17) Jed Joyce 2010 Chorro @ Marsh Box Art Mural $1,800 55 T Sunset (#18) Rachel LaBonte 2012 California @ Foothill Box Art Mural $2,200 56 T Central Coast … Color & Culture (#19) Robert MAJA 2010 Monterey @ Santa Rosa Box Art Mural $2,200 57 T Fence, Fields & Sky (#20) Amy McKay 2010 Higuera @ Broad Box Art Mural $1,800 58 T Everyone Trying to Fit In (#21) STENZSKULL 2012 Mill @ Santa Rosa Box Art Mural $1,800 59 T unnamed (#22) Abbey Onikoyi 2012 Pacific @ Broad Box Art Mural $2,200 60 T Oso Libre (Free Bears) (#23) Carol Paulsen 2010 Nipomo @ Higuera Box Art Mural $1,800 61 T Pismo (#24) Chris Pedersen 2012 2016 Repair S. Higuera @ Madonna Box Art Mural $1,600 ($800 Repair) 62 T Roots, Rocks, Right & Left (#25) Chris Pedersen 2012 2016 Repair Buchon @ Broad Box Art Mural $1,600 ($800 Repair) 63 T Stuck (#26) Samantha Pereira 2010 Higuera @ Santa Rosa Box Art Mural $1,800 Item 15 Packet Page 343 City of San Luis Obispo Public Art Inventory List 64 T “Townsey” Cyclist (#27) Jane Pomeroy 2012 Osos @ Buchon Box Art Mural $1,800 65 T Barn Owls (#28) Lena Rushing 2012 California @ Monterey Box Art Mural $2,200 66 T Unnamed (#29) Blair Rusin 2010 Marsh @ Nipomo Box Art Mural $1,800 67 T Unnamed #30 Love of Color (#30) Joey Salazar Sara Burke 2010 (deaccessio ned in 2017) TBD 20172 Osos @ Monterey Box Art Mural $1,600 68 T Bishop's Peak (#31) Ryan Williams 2010 Marsh @ Osos Box Art Mural $2,200 68 T A Joy II (#32) Ryan Williams 2012 Monterey @ Johnson Box Art Mural $2,200 69 T Fence, Fields & Sky (#20) Amy McKay 2010 Higuera @ Broad Box Art Mural $1,800 70 T Farmer's Market Box (#33) Amy McKay 2012 Marsh @ Johnson Box Art Mural $2,200 71 T Once Upon a Dream (#34) Alister Dippner 2016 Madonna @ Oceanaire Box Art Mural $1,600 72 T Robot (#35) Heidi Kruger 2016 Broad @ Orcutt Box Art Mural $1,600 73 T SLO Many Cows (#36) Elena Aker 2016 Foothill @ Patricia Box Art Mural $1,600 74 T Sweet and Low (#37) Bret Brown 2016 Foothill @ Broad Box Art Mural $1,600 75 T Celebrate SLO (#38) Nate Erlin 2016 Marsh @ S. Higuera Box Art Mural $1,600 76 T Naturally Beautiful (#39) Laura Lozingo 2016 Johnson @ Lizzie Box Art Mural $1,600 77 P Olas Portola Jeffery Laudenslager, Deanne Sabeck 2017 S. Higuera @ Marsh (Portola Fountain) Kinetic Sculpture $125,000 78 T Pacific Cows (#40) Eric Soderquist 2018 Foothill @Tassajara Box Art Mural $1,800 79 T Neighborhood Fruits (#41) Sally Lamas 2018 S. Higuera @Suburban Box Art Mural $1,800 80 T Our Sistine Chapel (#42) Chris Daly 2018 Johnson @San Luis Drive Box Art Mural $1,800 81 T Sleepy Hollow (#43) Chris Pederson 2018 Johnson @Bishop Box Art Mural $1,800 82 T Secret Doors (#44) Elizabeth Hudson 2018 Johnson @Laurel Box Art Mural $1,800 83 T Heart SLO (#45) Drew Davis 2018 Higuera/High/Pismo Box Art Mural $1,800 84 T Kelp Forest in Balance (#46) Annie Cappelli 2018 Madonna @El Mercado Box Art Mural $1,800 85 T Garden Window (#47) Elizabeth Hudson 2018 Madonna @Dalidio Box Art Mural $1,800 86 T Always Ready (#48) Amy Beeman 2018 Madonna @Los Osos Valley Road Box Art Mural $1,800 87 T Hotel Prickly Pear (#49) Sally Lamas 2018 Los Osos Valley Road @Royal Way Box Art Mural $1,800 88 T Sunny Sisters (#50) Morgan Wise 2018 Los Osos Valley Road @Laguna Lane Box Art Mural $1,800 89 T Prefumo Canyon (#51) Eric Soderquist 2018 Los Osos Valley Road @Descanso Box Art Mural $1,800 90 T Coast Rest (#52) Annie Cappelli 2018 Higuera @Margarita Box Art Mural $1,800 91 T Wild Weed Beauty (#53) Marcie Hawthorne 2018 Higuera @Prado Box Art Mural $1,800 92 T SLO Mission (#54) Cindy Burnside 2018 S. Higuera @Tank Farm Box Art Mural $1,800 93 T Music About Town (#55) Marcie Hawthorne 2018 S. Higuera @Los Osos Valley Road Box Art Mural $1,800 94 T Twilight Tunnels (#56) Charlie Clingman 2018 Calle Joaquin @Los Osos Valley Road Box Art Mural $1,800 95 T On the Prowl (#57) Katharine Tompkin 2018 Granada @Higuera Box Art Mural $1,800 Item 15 Packet Page 344 City of San Luis Obispo Public Art Inventory List 96 T Oak Grove (#58) Bobby Boss 2018 Ella @Johnson Box Art Mural $1,800 97 T Nitidulidae (#59) Jaqueline Tardie 2018 Orcutt @Laurel Box Art Mural $1,800 98 T Flower Power (#60) Marian Galczenski 2018 Broad @Industrial Box Art Mural $1,800 99 T Night Light of SLO (#61) Laura Loazano- Larrinaga 2018 Broad @Tank Farm Box Art Mural $1,800 100 T Seven Sisters (#62) Heather Millenaar 2018 Broad @Aero Box Art Mural $1,800 101 T Mission Bell Blueprint (#63) Christopher Taylor 2018 Tank Farm @Mindbody Box Art Mural $1,800 102 T Bee Journey: Critical Pollinators (#64) Marcie Hawthorne 2018 Mill @California Box Art Mural $1,800 103 T Happy Cow (#65) Amy Beeman 2018 Los Osos Valley Road @Froom Ranch Box Art Mural $1,800 104 T Unnamed Elizabeth Hudson 2019 Margarita Lift Station Box Art Mural $3,700 Last Updated October 2019 Item 15 Packet Page 345 Public Art Program Policies and Procedures Manual City of San Luis Obispo Updated January 2020 Item 15 Packet Page 346 1 POLICIES & PROCEDURES MANUAL Item 15 Packet Page 347 2 Table of Contents INTRODUCTION................................................................................................................................................. 4 What is Public Art? ................................................................................................................................................................................. 4 Definitions ................................................................................................................................................................................................. 5 CITY-FUNDED PUBLIC ART ........................................................................................................................... 7 Summary of the Process .......................................................................................................................................................................... 7 Funding Policies ....................................................................................................................................................................................... 8 Funding Procedures ................................................................................................................................................................................. 8 Public Art Manager’s Role ..................................................................................................................................................................... 9 Generating Ideas for Public Art in Capital Projects........................................................................................................................... 10 Methods of Selecting Public Art ........................................................................................................................................................... 12 Evaluating and Selecting Public Art .................................................................................................................................................... 13 Design Review/Public Hearings ............................................................................................................................................................ 14 Artist Compensation .............................................................................................................................................................................. 15 Public Art Installation ........................................................................................................................................................................... 16 Maintenance and Repair ....................................................................................................................................................................... 16 Legal Issues ............................................................................................................................................................................................. 17 Dedication of Artwork ........................................................................................................................................................................... 19 CITY PUBLIC ART PROGRAMS ................................................................................................................... 19 Temporary Public Art and Pilot Programs ......................................................................................................................................... 20 Developing Temporary Public Art Program Parameters .................................................................................................................. 20 Evaluation of a Pilot Program .............................................................................................................................................................. 20 UTILITY BOX ART PROGRAM .................................................................................................................... 21 Background ............................................................................................................................................................................................ 21 Program Details ..................................................................................................................................................................................... 21 PRIVATELY FUNDED ART IN PUBLIC PLACES...................................................................................... 26 Submittal of a Proposal ......................................................................................................................................................................... 26 Evaluation of a Proposal ....................................................................................................................................................................... 26 Item 15 Packet Page 348 3 Approval of a Proposal .......................................................................................................................................................................... 26 Contract Preparation............................................................................................................................................................................. 27 Issuing of Permits ................................................................................................................................................................................... 27 Labeling of Artwork .............................................................................................................................................................................. 27 Final Acceptance .................................................................................................................................................................................... 28 Dedication of Artwork ........................................................................................................................................................................... 28 MATCHING GRANTS FOR PUBLIC ART ................................................................................................... 29 Grant Criteria ........................................................................................................................................................................................ 29 Summary of the Process ........................................................................................................................................................................ 29 PUBLIC ART IN PRIVATE DEVELOPMENT ............................................................................................. 31 Placement of Public Art In Private Development ............................................................................................................................... 31 Public Art Donated to the City by a Private Developer ...................................................................................................................... 32 Payment of Art In-Lieu Fee .................................................................................................................................................................. 33 Certificate of Occupancy ....................................................................................................................................................................... 33 Ownership of Public Art ....................................................................................................................................................................... 33 Removal or Alteration of Public Art .................................................................................................................................................... 34 Use of Public Art In-Lieu Funds ........................................................................................................................................................... 34 APPENDICES A - O ........................................................................................................................................... 34 A. Resolution 6811 – Adopting Visual Arts Program B. City Funded Public Art Process Flow Chart C. Guidelines for Public Art D. Sample Artist Contract E. Public Art Final Acceptance Letter F. Application to Donate Art to the City G. Privately Funded Art Process Flow Chart H. Privately Funded Public Art Application and Waiver I. Resolution 9659 – Adopting Matching Grants for Public Art Program J. Matching Grants for Public Art Flow Chart K. Ordinance 1372 – Adopting Public Art in Private Development Program L. Planning Application Checklist & Planning Application for Private Development M. Privately Funded Public Art Process Flow Chart N. Public Art Maintenance Record & Public Art Maintenance Covenant O. Box Art Program Exhibits A-D (Glossary, Box Art Map, Downtown Boundary Map, Box Art Media & Materials) Item 15 Packet Page 349 4 INTRODUCTION What is Public Art? The City is driven to encourage Public Art that respects our past and embraces the future; supporting all members and facets of the community and not in contradiction with its core values: civility, sustainability, diversity, inclusivity, regionalism, partnership and resiliency. The City of San Luis Obispo strives to incorporate these values into public spaces through the proliferation of public art. Public Art develops from the engagement of an artist with public space. Within the realm of creating public art, artists encounter people, history, and process. The resulting artwork represents the diverse response to those factors by individual artists, leaving the question, “what is public art?” World Trade Center 9/11 Memorial -2015 “Standing Tall”, Artist Kathleen Caricof Item 15 Packet Page 350 5 Definitions 1. The City shall accept a “Work of Art” that commemorates ideas, ideals and concepts – not individual and actual people. 2. "Visual Art in Public Places' or "Public Art" means any visual work of art displayed in a publicly visible location: (a) in a City-owned area, (b) on the exterior of any city-owned facility, ( c) within any city-owned facility in areas designated as public area, lobbies, or public assembly areas, or (d) on non-city-owned property if the work of art is installed or financed, either wholly or in part, with city funds or grants procured by the City; and if on private property, secured by a public art agreement between the City and the landowner. 3. "Work of Art” includes, but is not limited to, sculpture, monument, mural, fresco, bas-relief, mobiles, photography, drawing, handcrafts, painting, fountain, landscape composition, banners, mosaic, ceramic, weaving, carving, and stained glass. "Work of art" is the creative result of individual or group effort and is either unique or of limited- issue nature, and is normally not mass-produced or intended primarily for a commercial market. Work of art" does not normally include landscaping, paving, architectural ornamentation, or signs as defined by Chapter 15.40 of the Municipal Code. 4. "Capital Construction Project” means any project listed in the City's Financial Plan Capital Improvement Program and paid for wholly or in part by the City of San Luis Obispo for public benefit. "Capital construction project" includes, but is not limited to building construction, addition, and remodel; parks; plazas; creek improvements and flood protection projects; bridges; streets, sidewalks, bikeways, trails other public transportation improvements; parking facilities, and similar public facilities as determined by the Community Development Director. 5. Construction Cost means the cost in dollars, as approved by the City Council or the City Manager, to construct a project. "Construction Cost" shall not include land acquisition, design, operation, or maintenance costs. 6. Eligible Project means a capital construction project which is not exempt under the provisions of this resolution, or by City Council or City Manager action. Item 15 Packet Page 351 6 Funding for public art can come about in a number of different ways and currently includes the following three options: 1. City Funded Public Art. Each year the City of San Luis Obispo sets aside one percent (1%) of the estimated cost of eligible projects in its Capital Improvement Plan for public art. 2. Privately Funded Art in Public Places. Private Citizens may donate public art to the City for personal reasons. (application for donation of art to the City is provided as Appendix F) 3. Public Art in Private Development. The City requires private developers to include public art in their projects valued at one-half of one percent (.5%) of the cost of construction over $100,000. Optionally, developers may contribute an amount equal to the value of the required art to the City’s art-in-lieu account or donate a comparably valued piece of art to the City. 4. Matching Grants for Public Art. The City has established a matching grant program to encourage public art. Public art projects receiving matching funds should provide a clear public benefit and advance the City's public art goals. For every request, the Council will determine an appropriate level of match, not to exceed 50% of the cost of the project. There are different procedures to be followed for each source of public art. Accordingly, this manual is divided into separate sections that cover each of these processes. “Bee Bee Works His Magic” 2008 Artists Carol Paulsen and Stephen Plowman Located in front of SLO Little Theater A Sculptural presentation that embraces the spirit of Bill Beeson’s life and his boundless energy and advocate and mentor for the arts in all forms. Item 15 Packet Page 352 7 CITY-FUNDED PUBLIC ART In May 1990, the City Council established and funded a public art program. The Council determined that one percent (1%) of the estimated construction cost of eligible projects in the Capital Improvement Plan should be set aside for public art. (See enabling legislation, Appendix A) As a budget balancing strategy, the City Council could (through the city budget process) specify a differing amount for the public art allocation. Summary of the Process 1. The Finance Department includes an art funding component in each Financial Plan budget request equal to 1% of the construction component for all eligible projects. 2. A committee comprised of City staff, currently the Capital Improvement Plan Committee, determines which capital projects will be recommended for public art, based on available funding and suitability of project. The committee also recommends funding levels for each project. 3. Council approves committee’s recommendations for public art in certain capital projects. 4. Art is incorporated into preliminary project studies and design for recommended projects. 5. Public Art Manager solicits artist's qualifications and/or proposals. 6. Public Art Manger appoints an art jury. 7. Artist/artwork is selected by jury. 8. Proposed artwork is reviewed by Public Works staff, as appropriate. 9. Proposed artwork is reviewed by the Cultural Heritage Committee, the Parks and Recreation Commission and/or the Mass Transportation Committee, as appropriate. 10. Architectural Review Commission (ARC) approves artwork and forwards recommendation to City Council. 11. City Council approves artwork. 12. Public Art Manager prepares public art contract. 13. Public Art Manager secures planning/construction permits and works with artist to fabricate artwork. 14. Artwork is installed. 15. Public Art Manager inspects the artwork and compiles the maintenance information. *See Appendix B for a flow chart of the process “The American Spirit” 2003 Artists: Will Carlson, Jim Jacobson, Erick Wand Item 15 Packet Page 353 8 Funding Policies The following administrative policies have been developed to effectively manage the City-funded public art program: 1. Eligible Projects. All Capital Improvement Plan projects are considered eligible for public art, and are expected to contribute to the City’s public art fund in an amount equal to one percent (1%) of the project's construction cost, unless the project is exempt. Exemptions include: • Utility projects, such as sewer or water system improvements. • Underground projects, such as new storm drains, storage tanks and similar items. • Public art projects themselves. • The portion of any project funded by grants from outside agencies. 2. Public Art Account. A Public Art Account is maintained by the Department of Finance to fund public art projects. As part of the Financial Plan process, every two years, an amount equal to one percent (1%) of the construction component of all eligible projects is placed in this account. Funding is then transferred by Finance staff to either a public art phase of a capital project account or to a specific public art project account once the Council determines appropriate public art projects for the two-year financial plan. Funding Procedures The following procedures are followed by City staff to set up funding for public art projects. 1. Identify Capital Projects. Departments normally submit Capital Improvement Plan Requests for the construction of projects during the regular budget cycle. As part of those submittals, the Finance Department includes a public art funding component equal to 1% of all eligible projects’ construction costs. 2. Public Art Account. Public Art funds identified in a Capital Improvement Plan and approved by Council are then set aside in a "Public Art Account". 3. Allocation of Public Art Funds to Projects. Following approval of the two-year Financial Plan, the City's Capital Improvement Plan (CIP) Review Committee meets to determine which capital projects are most appropriate for the inclusion of public art, as well as an appropriate level of funding for each project. The CIP committee may also recommend other public art projects that are not tied to a CIP. The following criterion is used to identify projects suitable for public art: a) Project should have high public visibility and use. b) Project should lend itself to the inclusion of public art. c) Project should be public art ready, meaning the project should be nearing the design phase or near or under construction and will be completed within the two-year CIP. d) The number of projects should be limited in order to focus staff efforts and result in meaningful pieces of public art. The Public Art Manager forwards the Committee's recommendations to the Council for approval. 4. Transfer of Funds to Project Budgets. Upon Council approval of recommended public art allocations, the Finance Department transfers funding from the Public Art Account to the public art line item in the designated project budget. 5. Staff Reports to City Council. Staff reports submitted to the City Council or to the City Manager to request approval to solicit bids or proposals for capital projects state whether public art has been designated as part of the project scope. If the project has been approved for public art, the discussion includes a suggested art theme, how proposals will be Item 15 Packet Page 354 9 solicited, and the estimated cost of the public art project. This information is included in the staff report under a separate sub-heading at the end of the "DISCUSSION" section entitled “Public Art”. Public Art Manager’s Role The Public Art Program is managed by the Parks and Recreation Department. A Parks and Recreation staff member is assigned this role and shall be responsible for the following: 1. Eligibility and funding. Making sure that for each capital project answers to the following: a. Is the project designated for public art? b. If so, has the funding been transferred to the project budget? c. Has sufficient funding been set aside from the allocation for artist pre-selection stipends ($3,500), plaques ($500), and dedication ceremonies ($300)? 2. Planning and design. Although the Public Art Manager does not design the artwork, they are expected to recognize and plan for the possibilities. Steps would typically include: a. Identifying possible locations in a capital project for public art. The project designer, an artist or representatives from local arts organizations may help suggest artwork sites. b. Possibly suggesting the general type of public art possible, for example, ground- or wall-mounted sculptures, murals, landscape art, special architectural features, such as windows, benches or railings, or other possibilities. c. Determining whether the approved budget is adequate for the proposed art concept. Some projects may warrant larger public art expenditures. For example, important public buildings like a performing arts center or City Hall expansion may offer special opportunities for public art and a decision may be made to request Council augmentation of the approved budget. d. Designing the capital project to accommodate public art. The location of the artwork should enhance the project's overall appearance, and be publicly visible or accessible. Whenever possible, the artwork should be a part of the actual project itself. 3. Selection of Artist and Artwork. Like other consultants or contractors who work on capital projects, artists work under contract with the City. The Public Art Manager administers the selection and contracting process. Tasks include: a. Determining the best method for selecting an artist (See Methods of Selecting Public Art). b. Arranging for the RFP/RFQ to be evaluated by a selection committee or "jury". c. Providing the Public Works Director or his/her designee the opportunity to review the RFP/RFQ for impacts of proposed placement or maintenance. d. After jury acceptance of a proposal, assuring that the Architectural Review Commission (ARC) and other appropriate advisory body review has occurred regarding whether the proposed art piece is consistent with the City’s Guidelines for Public Art (Appendix C). e. Preparing an agenda report and taking the selected artist’s design to the Council for approval. f. Preparing contract documents. 4. On-going review. The Public Art Manager takes steps to insure a smooth construction process by: Item 15 Packet Page 355 10 a. Processing invoices and other pay requests. b. Monitoring and inspecting work progress to insure a quality project. c. Following up to ensure that the artwork meets all code requirements and permit conditions. 5. Final Inspection and Acceptance. The final steps for the Public Art Manager include: a. Arranging for final inspection of artwork by appropriate City staff. b. Verifying in writing that the artwork has been completed per contract. c. Arranging for a plaque acknowledging the artwork and artist. d. Arranging for City Council and/or public reception/dedication for the project and the artwork. Generating Ideas for Public Art in Capital Projects The Public Art Manager is not expected to be an artist or to single-handedly create public art. S/he is expected, however, to be the catalyst, and to take the necessary steps to make it happen. Again, consulting with local artists or representatives from the local arts organizations may be helpful. 1. Getting Started. The Public Art Manager’s key role is to define the possibilities for art. To do this, s/he should: a. Know the site. Contact the County Historical Museum, Cultural Heritage Committee, the San Luis Obispo County Arts Council, local historians or other City staff to understand the site's background. For example, what is the site's cultural or historic significance? How is it (or how could it be) related to other public spaces or facilities? How has it changed over time? Does it have environmental features that might be repeated in the artwork? Could the art become a part of the architectural fabric of the building? b. Be aware of site context. A historic neighborhood or building, natural feature, or cultural pattern (e.g. Chinatown, Government Center, Mission Plaza, etc.) can strongly influence the type of art selected. c. Look for design opportunities. Most projects will not automatically present locations for art -- the opportunities usually have to be created. This means thinking about how art could be included early in the project study and design phases, not after the construction drawings are done. Some creative approaches to incorporating art in project designs include: • A city building that incorporates bas-relief sculpture or mosaic tile into its exterior design, and changeable exhibit space inside. • A parking lot that includes a unique seating area or sculpture. • A bikeway with a series of decorative panels inset into the paving. • A bridge with a gateway arch, mural, or water feature. Item 15 Packet Page 356 11 2. Generating ideas. The possibilities are numerous. They grow out of the site's characteristics, context, functional needs, and the project’s design. It starts when the Public Art Manager (in collaboration with artists, arts organizations or other staff) generates some ideas -- keeping them loose and very open-ended at first. For example: a. Public Buildings: • Provide interior wall space or display cases in prominent interior locations for the changeable display of public art, possibly from school or community groups; or works on loan from artists or arts organizations. • Emphasize permanent artwork at building entries, exterior patios or courtyards, or any visually prominent location used by the public. Consider using rich, architectural materials that integrate art with the building, such as the tile mosaic of Old Mission life at the rear entrance to City Hall. b. Parks, plazas, playgrounds: • Sculpture, entry gates, specially designed walkways, murals, landscape art, fountains, and artfully designed street furniture, signage, trash receptacles, bike lockers, bike racks and bandstands are just a few possibilities. c. Streets, alleys, median planters, sidewalks, trails, bikeways, public transportation and parking facilities: • These locations offer some of the best opportunities for public art. They are highly visible and accessible. And due to the large expanses of paving, they can often benefit from the visual interest and variety that public art can provide. Linear or repeating artworks can be used, for example, to unify a bikeway plan and provide orientation stations along routes. d. Miscellaneous Projects. • Bridges, creek improvements, above ground utility stations, and other special facilities also present public art opportunities where they have good public visibility. Creek projects, in particular, should include art that enhances the creek’s natural beauty and ecological diversity. 3. Getting Help. Public art is one more item that the project manager for the CIP needs to consider in getting projects built. There are resources both inside and outside of the City to help with this task. For example: a. The Public Art Manager can explain the public art program requirements, will help facilitate the review of art projects through the various public approvals, including jury selection, public relations and Council approval, and will provide a list of potential artists to receive the request for proposals; b. Finance staff can advise you on funding strategies and requirements; c. The San Luis Obispo County Arts Council (Arts Obispo) assists the City by providing expert technical advice and commentary on public art, and serves as a liaison between the City and the art community; d. The Arts Obispo Directory, located on their web site (www.artsobispo.org), is also a good source for ideas and finding artists. Artists: Carol Paulson & Steve Plowman Item 15 Packet Page 357 12 Methods of Selecting Public Art Since public art is often such a prominent visual feature, it is important that each artwork be thought through carefully. Early public participation is a key part of the process. Another key aspect is involving the artist in the overall project design phase early on so that the work of art is well integrated with the site and/or buildings. 1. Developing Artwork Parameters. Before hiring an artist, some general parameters should be set to help guide artist selection. Based on knowledge of the site and the project's design possibilities, a number of possible locations and general types of art that would work for the project should be identified. Feedback should be sought on these ideas from other staff, or the San Luis Obispo County Arts Council, as mentioned earlier. (See previous section, Generating Ideas for Public Art in Capital Projects.) 2. Selection Strategies. Typically, an artist is selected in one of the following manners: a. Request for Qualifications. A Request for Qualifications (RFQ) followed by a Request for Proposals (RFP) is the most common method used for selecting an artist. The Public Art Manager will notify a current list of potential artists and art organizations regarding the Call for Artists. b. Sole Source. This approach reflects the fact that public art is fundamentally different from most other types of public works. With art, we are looking for an individual expression or unique idea -- not price comparisons for one plan or idea. In some cases, the Council or Public Art Manager may have a specific artist or type of art in mind, and may choose to request a proposal from an individual artist without going through competitive selection. This approach requires Council approval and needs to be clearly justified as to why competitive selection is not needed or desirable, and how sole sourcing will better meet the City's objectives for the project. c. Acquisition. Acquisition of an art piece that has already been completed by an artist may be appropriate in some very rare circumstances. The purchase price and the cost of installation comes from the percent-for-art budget. Council approval is required before this process may be used. 3. Policy statement on artist recruitment. One of the City's goals is to promote the involvement of local artists and citizens in the public art program. In juried art competitions of under $40,000 a residency requirement will mandate eligible artists reside within San Luis Obispo, Monterey and Santa Barbara counties. Item 15 Packet Page 358 13 Evaluating and Selecting Public Art In cities throughout the U.S. there has been growing support for public art. However, some projects have been widely criticized as being "plop art" -- elements simply "plopped" down without sensitivity to the site or to the people who use the space. Understanding what to look for and integrating artists in the early stages of a project can help to avoid "plop art." 1. Public Works Department Review. Prior to beginning the jury review, the Public Art Manager arranges for the project to be reviewed by appropriate staff in the Public Works Department. The purpose of this review is to uncover any significant engineering or maintenance issues that may arise out of the placement of art or the choice of materials for the artwork for the particular site. If the artwork is part of a larger construction project, it may be valuable to have the project contractor present, as well. This information will be presented to the jury to help guide their decisions when selecting a piece. 2. Selecting an Art Jury. The majority of City public art projects will use the Request for Qualifications (RFQ) selection method. Art juries help staff evaluate the qualifications received and make a final selection to proceed through the remainder of the approval process. The preferred approach is to create a five/seven-member jury for a project. In some cases, a slightly larger jury may be necessary to accommodate all the parties impacted by the artwork. Jury composition will vary depending on the type of art project but should in clude a selection of the following, as appropriate: • An Arts Council Member • At least two professional artists • A neighbor or representative of a neighborhood association when a neighborhood will be impacted by the project. • A for-profit or non-profit business representative, preferably one whose business will be impacted by the project • An educator/historian, or someone aware of the historical implications of the artwork in the community As appropriate, a member of the Parks and Recreation Commission, Downtown Association, the Cultural Heritage Committee or the Mass Transportation Committee. The San Luis Obispo County Arts Council can assist the Public Art Manager in contacting appropriate artists and members of the Arts Council. In addition, the Public Art Manger has a current list of prospective jurors who have indicated a desire to serve on an art jury. 3. The Jury Selection Process a. Stage 1. Applications submitted in response to this RFQ will be reviewed by the Public Art Manager who will then forward all complete and eligible applications received by the deadline to the selection committee (jury) consisting of: San Luis Obispo County Arts Council member(s), local artist(s), interested community members, City staff and a neighbor(s). Upon evaluating the qualifications provided in the applications, the jury will shortlist three to five semi-finalists to be invited to participate in an RFP process as well as an interview and discussion of project concepts. NO PROPOSAL FOR ARTWORK IS REQUIRED DURING THE STAGE 1 SELECTION PROCESS. b. Stage 2. (Only semi-finalists will be able to participate in Stage 2) Those artists selected will each receive a $700.00 honorarium for travel expenses and the development of specific concepts (up to three concepts per artist/team). As part of the process, prior to creating a concept design(s), each semi- finalist/team will travel to the City of San Luis Obispo for a site visit and meeting with the Jury and City staff to understand the opportunities and limitations within the site and to witness the local environment. As a part of the Stage 2 Proposal, each semi-finalist/team shall provide a detailed, all-inclusive estimated budget including costs associated with the fabrication and installation of the work including engineering, lighting and landscaping. Semi-finalists/teams will be given four (4) weeks to adequately undertake the Concept Proposal(s) and Item 15 Packet Page 359 14 estimated costs. The proposals may be publicly displayed for community viewing and response. Project concepts will be evaluated on the following criteria: • Understanding of the work required by the City • Evaluation of artistic excellence • Appropriateness of scale, form, material, content and design relative to the site • Relationship to the social, cultural and/or historical identity of the site • Appropriateness of proposed materials in regards to structural and surface integrity, public safety and weathering and its protection against theft and vandalism • Appropriateness of proposed method of installation of artwork, and the safety and structural factor involved in installation • Ease of maintenance • Evaluation of proposed budget and the artist’s ability to successfully complete the project within the proposed budget • Experience in working on comparable projects c. Final Selection. Following artist interviews and design review of the top proposals, the jury selects a final design that then proceeds forward for review by the appropriate Commissions/Committees, the Architectural Review Commission and final approval by the City Council. Design Review/Public Hearings Planning Review 1. Review Steps. It is the Public Art Manager’s responsibility to initiate planning applications, submit plans, and ensure that capital projects go through the required public hearings. The standard City policies apply to legal notice requirements, appeals, and environmental review. For more information on these details, contact Community Development Department staff. Typically, public art as part of capital projects follows these public review steps: a. environmental review (typically Categorically Exempt and not required if public art proposal is in the interior of a structure) b. review by the Architectural Review Commission c. final approval by the City Council In special cases, the artwork will also require review by: d. Planning Commission (if the overall project requires a use permit) e. Parks and Recreation Commission (if in a City park) f. Cultural Heritage Committee (if in Mission Plaza or other designated historical area) 2. Concurrent Review. It is preferable for the artwork to be designed, reviewed, and approved concurrently with the capital project. This approach: 1) allows the artwork to be designed as an integral part of the overall project; 2) allows the design, fabrication, and installation of the artwork under a single contract; and 3) is usually easier and more efficient in terms of staff time and public review. 3. Separate Review. Sometimes, for reasons of design, funding or timing, it is necessary to plan the public art after the main project design is completed. Although the general location and type of artwork should be decided during the Cheng Park Dedicated 2007 by Alice LohHang Zhou Item 15 Packet Page 360 15 project planning stage, the actual design and implementation is then handled separately from the main project bidding and construction. The best approach depends on the particular project, and the project manager needs to discuss alternatives with department management and the Public Art Manager. 4. Architectural Review Commission and Other Commission Review. It is important for the Public Art Manager to understand the role of the Architectural Review Commission (ARC) and other Commissions/Committees in reviewing public art. The art jury has already selected the artistic design, and future review must respect the integrity of that design. The ARC is charged with insuring that the proposed artwork meets the City’s Guidelines for Public Art (See Appendix C) and that it is appropriate for the proposed location. Minor adjustments could be suggested, for example, to make the location fit better. However, the ARC or any other City Committee or Commission should not become involved with redesigning the actual artwork. Artist Compensation 1. Methods of Payment. Artists can be paid on an hourly basis, with fixed payments tied to a performance schedule, by lump sum, or on some other basis, similar to other types of consultants. Whatever the approach, payments should be tied to a clearly defined and agreed upon schedule of performance. It is also customary to pay a retainer fee of 20-25% of the total contract price upon awarding the contract. Any other terms or special conditions, such as a liquidated damages clause, unforeseen costs or delays, and other provisions are negotiated on a case-by-case basis as necessary. A modified version of the City’s standard contract should be used. See Appendix D for a sample artist contract agreement. 2. Typical Payment Schedule. A typical artist's payment schedule will relate compensation to the value of work received, as in the following example: Award of Contract 25% Mid-point of Contract 50% ** Acceptance of Completion 25% ** Depending on the type of art involved, different milestones can be set to establish when mid-construction payments should be made, i.e., for a sculpture, when artwork goes to the foundry could be one phase, completion of foundry work could be another. If an extensive construction design plan is needed, completion of that plan could be a payment milestone. Item 15 Packet Page 361 16 Public Art Installation Like most other construction projects, public art requires plans and specifications. Although these may vary in terms of detail and complexity, even the simplest art project requires plans and specifications, either included with a larger bid document being issued for the entire capital project (if the construction contractor is responsible for installation) or a separate bid (if the artwork is a free-standing project and being installed by someone other than the artist.) 1. Plans and Specifications - What's needed? Plans for public art projects require much of the same information as other types of new developments. Depending on the type of public art, the following information is typical: • Site Plan • Grading Plan (if appropriate) • Elevation/section drawings (if appropriate) • Design, attachment, and/or fabrication details • Structural Calculations • Material and performance specifications • Maintenance program Each project is different, and the project manager will need to decide how much, and what type of information is needed to successfully fabricate and install the artwork. 2. Plan Check, Permit and Inspections a. No Building Permit Required. Most types of freestanding public art are treated as structures in the Uniform Building Code, and require a construction permit; however, the City is not legally required to get a building permit for its own capital projects. b. Inspections. Any public art project that poses structural safety concerns should be reviewed by the Chief Building Official for safety. Inspections are required to ensure that the project is built as approved. (1) For small projects, like small sculptures, murals, or similar projects where structural safety is not a concern, one building inspection is usually sufficient upon completion. The Public Art Manager also does a final inspection when the project is complete. (2) For larger or more complex projects, several inspections may be needed. It is the project manager's duty to call Building and Planning staff to set up the inspections. If the inspector finds problems or changes from approved plans, s/he sends a correction list to the project manager within 48 hours of the inspection. The project manager then needs to coordinate with the artist, architect, and other staff members to resolve the "punch-list" items before the City finally "accepts" the artwork and makes final payment for the work. 3. Final Acceptance. All new public art projects, whether freestanding or part of a larger capital project, require a final acceptance by the Public Art Manager, acting on behalf of the City. After the art project has been signed off by all inspectors, the Public Art Manager prepares a letter formally accepting the artwork. The letter documents completion of the artwork, triggers artist and/or contractor payments, and allows the City to express thanks and congratulations to key participants. The letter is signed by the Public Art Manager and the project manager and addressed to the Community Development Director, with copies to the CM, project architect or engineer, project artist and contractor. (See Attachment E for sample acceptance letter.) Maintenance and Repair Like most City facilities, public art requires maintenance and occasional repairs. Although the City's guidelines encourage artworks requiring "little or no maintenance", artworks will vary in the amount of maintenance required, resistance to vandalism, and ease of repair. Item 15 Packet Page 362 17 1. Maintenance Record Form. It is essential that the artist and the City be clear about maintenance expectations up front. Prior to final acceptance of the artwork, the Public Art Manager insures that the artist has completed a Maintenance Record Form. A sample form is provided in Attachment F. The original copy of the form is kept by the Public Art Manager and a copy is forwarded to the Public Works Department. 2. Maintenance Responsibility. The Public Works Department is responsible for maintaining City facilities, and this includes all City- owned or City-sponsored public art. Temporary artworks owned by others but exhibited in City buildings or on City-owned land is the responsibility of the owner, unless other arrangements are made by prior agreement with the City. A list that identifies which Public Works Department division is responsible for the maintenance of a particular piece of public art is available from the City’s Public Art Manager. 3. Maintenance Cost. The public art maintenance fund covers the cost of all public art maintenance. For this reason, it is important that Public Works staff notify the Public Art Manager if maintenance of an artwork is needed. 4. Types of Maintenance. City crews are responsible for: a. Routine Maintenance. Such maintenance includes trash and graffiti removal, cleaning, waxing, minor landscaping, replacing light bulbs, and mechanical activities like tightening, adjusting, and oiling. Frequency will vary by type of artwork, but bi-weekly or monthly checks by maintenance staff during the normal course of their rounds would be typical. b. Cyclical Maintenance. Cyclical maintenance is done at regular, but much less frequent intervals. It involves more extensive treatment such as disassembly, inspection, and surface applications of protective coatings (e.g. repainting). Because this work could significantly affect the appearance and longevity of the artwork, it may require special knowledge or skills. Before proceeding with the work, staff should either: (1) Consult the artwork's Maintenance Record Form for specific procedures, or (2) Consult the artist or other competent art professional on use of cleaning compounds, paints, solvents, and surface coatings. c. Repair and Restoration. This involves the treatment of damaged or deteriorated artworks to return them to as close to their original appearance as possible. Extreme care must be used to maintain the artistic integrity of the artwork. The repairs must preserve the artist's intent in both design and materials. In many cases, such repairs require the involvement of the original artist, or if that is not possible, an art conservator trained in art restoration. Again, the artwork's Maintenance Record Form, prepared by the artist prior to final City acceptance of the artwork, gives some guidance on this issue. The City has an ethical and legal responsibility to maintain the artistic integrity of an artwork (Calif. Art Preservation Act, Cal. Civ. Code 987 (West Supp. 1985)). Improper maintenance and repair methods can damage valuable artworks, and may trigger legal challenges by the artist. Legal Issues 1. Ownership. In most cases, the City will own public art installed in connection with capital projects -- but not always. For example: Artist: Elizabeth MacQueen Item 15 Packet Page 363 18 a. City-funded Public Art. Under the terms of the City’s contract with the artist, all City-funded art installed on City property is owned by the City upon its completion. b. Jointly Funded Public Art. Sometimes private funding may be used to augment City funds for public art on City property. Due to the joint sponsorship, an "art agreement" is necessary between the City and other government agencies or private sponsor that clarifies mutual roles, responsibilities, funding levels, and other terms. 2. Insurance Requirements a. During Fabrication of Artwork. Because of the uniqueness of each piece of public art, the City’s Risk Manager needs to be consulted to determine the appropriate type and level of insurance that must be carried by an artist during the time the artwork is being fabricated and installed. As a service to the artist, the City currently offers an insurance policy that can be purchased through the City. Cost of the insurance varies depending on the value and scope of the artwork. The artist should be directed to the Risk Manager for a cost estimate and to complete appropriate paperwork. b. Upon Acceptance by City. Once a permanent artwork is formally accepted, the City assumes responsibility and liability for the art. 3. Relocation, Alteration or Removal a. Reasons for Relocation, Alteration or Removal. From time to time, permanent City-owned artworks may need to be relocated, altered, or removed from public display. Reasons for such changes could be as follows: (1) significant changes occur in the design or function of the site or facility where the artwork is located; (2) to avoid damage to the artwork, e.g. during construction activities or as a result of vandalism, war or civil unrest, natural disasters, and environmental pollution; (3) to allow repairs or restoration that could not be effectively done in place; (4) to improve public health, safety or welfare; or (5) to promote the public interest and the City's Visual Arts in Public Places program goals. b. Approval of Relocation, Alteration or Removal. As necessary as removal or relocation may seem, it should be undertaken only after careful consideration and only as a last resort. Artworks are usually created for a specific location, and changes may not be consistent with either the City's or the artist's original intent. Moreover, California, New York, and Massachusetts have enacted laws establishing artists' "moral right" to protection of their work against unauthorized alteration or destruction”. To ensure that all parties' needs and rights are considered, City Council approval must be secured for the relocation, alteration, or removal of permanent, city-owned artworks. c. Contract Language on Relocation, Alteration or Removal. The Public Art Manager must make sure that: (1) The artist's contract clearly acknowledges the City's rights to relocate, alter or remove the artwork, with or without special conditions requiring written notice to the artist, prior artist permission, arbitration in the event of a dispute, or other provisions; (2) The City has the permanent addresses and phone numbers of the artist and at least one other responsible party who can be contacted regarding relocation, alteration or removal. It is the responsibility of the artist to keep this information current. Item 15 Packet Page 364 19 Dedication of Artwork Once installation of the artwork is complete, the Public Art Manager organizes a dedication ceremony that presents the piece to the community and recognizes the artistic efforts of the artist. This may occur consecutively with the dedication ceremony for the capital project or at a later date, if the artwork is completed after the capital improvement project. “Roots of the Community” 2013 Artist: Joshua Wiener Item 15 Packet Page 365 20 CITY PUBLIC ART PROGRAMS Temporary Public Art and Pilot Programs The purpose of the Temporary Public Art Pilot programs is to encourage the creative uses of public art throughout the community through the promotion of opportunities, establishment of guidelines, and minimum maintenance requirements. Developing Temporary Public Art Program Parameters 1. Developing Pilot Program Parameters. Develop general pilot program parameters to help guide program location and artist(s) selection. Based on knowledge of the site and the project's design possibilities, a number of possible locations and general types of art that would work for the project should be identified. Feedback should be sought on these ideas from other staff, or the San Luis Obispo County Arts Council, as mentioned earlier. (See previous section, Generating Ideas for Public Art in Capital Projects.) 2. Duration. Temporary Public Art should be limited in display for approximately five (5 years). Display of public art beyond five years should require Council’s approval to convert a temporary public art to a regular ongoing program/permanent art exhibit. Evaluation of a Pilot Program 1. Evaluation Group. Once the pilot program parameters have been developed, the Public Art Manager solicits evaluation from Public Works staff and local art organizations, such as Arts Obispo or the Downtown Association Design Committee, to judge the merits of the pilot program. 2. Evaluation Criteria. The evaluation group applies the standard Guidelines for Public Art (Appendix B) in making a determination that the proposed project is acceptable to the City and should move forward in the approval process. 3. Evaluation Criteria for Historical Locations. Programs proposed for areas of high historical sensitivity, such as an approved Historical neighborhoods or Mission Plaza, shall receive the review and recommendation of the Cultural Heritage Committee for consistency with historical context of the surrounding area. Projects that do not garner the support of the respective Advisory Bodies will not proceed, unless appealed to City Council pursuant to Municipal Code Section 1.20. 4. Evaluation Criteria for Architectural Review Commission. The Architectural Review Commission reviews the proposal to assure that it meets the adopted Guidelines for Public Art. (Appendix B). Projects that do not garner the support of the respective Advisory Bodies will not proceed, unless appealed to City Council pursuant to Municipal Code Section 1.20. 5. Council Approval. Staff shall present the temporary public art design, as recommended by the Art Jury and Advisory Bodies, to the City Council for final approval. Item 15 Packet Page 366 21 UTILITY BOX ART PROGRAM Background In 2010, as part of the City’s Downtown Maintenance and Beautification project, the City Council approved funding for the Utility Box Art pilot project. This temporary public art pilot project was initiated by the City of San Luis Obispo with the support of the San Luis Obispo downtown Association and Arts Obispo. Initially conceived as a graffiti abatement measure to enhance unattractive utility/traffic control boxes at various high visibility intersections in the Downtown core, widespread popularity of the box art program quickly grew and enabled the pilot program expand. The Utility Box Art Program was designed to use the funding for regular lifecycle maintenance of city assets in a creative way. The program allowed for these street level artworks to add vibrancy to our cityscape, while creating a sense of place and identity for our community through a resident art selection jury. These public artworks were not intended to be permanent but as a temporary canvas through which artists and community members could express themselves and their identity. Since 2010, various painted utility/traffic control boxes have required maintenance upgrades, installation of necessary battery back-up cabinets or repairs as a result of unanticipated damages which have had an impact on the artwork. In 2015, updates to the City’s Public Art policy included the adoption of the Utility Box Art program a regular, ongoing public art program. Additional program updates were identified in 2016 to clarify maintenance procedures for the artwork should the utility/traffic control boxes require repairs, removal or modification, and to address expansion of the program, the life-span of the artwork and proper archival methods for the box art murals. The goal of the Utility Box Art Program is to encourage the creative uses of public art throughout the community through the promotion of new artist opportunities to create works of art that contribute to the vitality and attractiveness of the streetscape. Artwork on utility boxes function as a form of communication to a moving audience with the goal of creating a vibrant, inclusive and interesting urban environment. Program Details 1. Mission of Box Art Program: The primary mission of the “BOX ART” program is intended to invigorate the City of San Luis Obispo for both residents and tourists alike through the incorporation of public art on traffic signal utility boxes. The utility boxes serve as community “canvases” for original pieces of art, contribute to the vitality and attractiveness of the city while deterring vandalism and graffiti. 2. Glossary of Terms: A Glossary of Terms for the Utility Box Art Program is provided as Exhibit A. 3. Box Specification: Dimensions of the large utility boxes are generally 5’4” H X 3’3” W x 2’,9” D. Dimensions of the small utility boxes are generally 3’ H X 2’2” W x 1’6” D. Art should cover all exposed sides including the top. Item 15 Packet Page 367 22 Utility box sizes may vary; selected artists must be willing to adjust designs to the box assigned. There are a total of sixty-four (64) City-owned traffic signal boxes that are included in the Box Art Program. A map of City traffic signal box locations is provided as Exhibit B. 4. Maintenance of Box Art Murals: The Public Art Program Manager shall prioritize the box art mural maintenance needs on an annual basis. Utility Box Art murals shall be cleaned annually. Additional cleanings could be provided through volunteer and partnership opportunities as available. To help protect the utility box art murals from the environment and extend the life-span, the utility box art murals located outside of the Downtown Core (and refreshed less frequently) shall be recoated with an anti-graffiti UV protectant sealant approximately every three (3) to five (5) years as funding permits. Deaccessioned utility boxes on display as part of an archival program shall be included in the box art maintenance program, cleaned and re-coated as needed to protect the integrity of the artwork. 5. Duration of Box Art: Utility Box Art murals shall be on public display for a recommended period when the utility box would then be eligible for refreshing of the box art mural. The replacement schedule of the exterior box art murals shall be determined by both the extent of maintenance and/or repairs required and a box’s location. a. Significant Repairs: Utility box art murals that are subject to significant repairs (such as but not limited to: extensive graffiti, vandalism, damaged traffic signal casings, failure of the internal electrical components, or subject to mechanical maintenance upgrades as referenced in Exhibit A) shall be reviewed on a case-by- case basis by the Public Art Manager to determine the extent of repairs or replacement. Any boxes identified for significant repairs should be designated for a subsequent Box Art painting phase. a. Location: The duration of display for box artwork shall be subject to the box locations as follows: 1. Downtown Core (as defined by the SLO Downtown Association boundaries, Exhibit C): In effort to promote vibrant tourism of the downtown core, the utility box art located within this area will be refreshed approximately every three (3) to five (5) years as funding permits. The frequent rotation of artwork in the downtown promotes economic vitality by attracting new and visiting populations. 2. All Other City Locations: The utility box art murals located outside of the Downtown Core boundaries, and in residential neighborhoods, shall be on display for an extended period of time. The utility box art located in these areas shall be refreshed approximately every 10 years as funding permits. 6. Utility Box Art Program Expansion: Program expansion shall include utility boxes that are not currently painted with art. Each expansion phase of utility box art should consist of a recommended amount of utility boxes; preferring fifteen utility box locations or less. These utility/traffic control box locations shall be determined by Public Works and Public Art program staff, with input from community organ izations such as the Downtown Association, SLO Chamber of Commerce, Arts Obispo and neighborhood groups; as meeting one or more of the following criteria for program expansion. a. Criteria for Box Art Expansion: i. Community engagement: The City shall facilitate public engagement opportunities seeking the community’s input and prioritization for program expansion. ii. Exposure: The level of pedestrian, bicycle and vehicle traffic surrounding the potential box location shall be considered. Preference shall be given to box locations with the greatest exposure. iii. Vandalism: Utility box locations that are routinely subject to vandalism and/or graffiti shall receive consideration for subsequent program expansion. iv. Proximity to other art in public spaces: Proximity of the traffic signal utility box location to other community art. Preference shall be given where there is minimal public art in close proximity. v. Ownership: Staff will evaluate both City-owned and privately-owned utility box locations. Preference shall be given to 64 City-owned utility locations. The City will explore partnership opportunities for program expansion to privately-owned utility box locations (such as electrical, television and phone utilities). 7. Artist Eligibility: The Box Art program shall be open to individual artists, a team of artists or community groups Item 15 Packet Page 368 23 with a designated lead artist who have the vision and skills required completing the project to the highest standards of innovation and technical expertise. Qualifying applicants must reside in San Luis Obispo County. Artists should carefully read the description of the project and Request for Proposals (RFP) and decide if the project is suitable to their interests, capabilities and experience. 8. Public Works Department Review: The Public Works Department shall provide input in the development of the Box Art RFPs before advertising. Prior to beginning the Art Jury review, the Public Art Manager shall arrange for the proposals to be reviewed by appropriate Public Works Department staff. The purpose of this review is to identify any significant engineering or maintenance issues that may arise out of the placement of art or the choice of materials for the artwork for the particular site. If the artwork is part of a larger construction project, it may be valuable to have the project contractor present, as well. This information will be presented to the Art Jury to help guide their decisions when selecting an art design and location. 9. Selecting an Art Jury: Art Jurors evaluate the artist qualifications and box art proposals received and make a recommendation for selection. The preferred approach in assembling an Art Jury is to create a five/seven-member selection committee for the Box Art project. The Art Jury, consisting of volunteers from Arts Obispo, SLO Downtown Association, San Luis Obispo Chamber of Commerce, local artist(s), interested community member(s), City staff and a box art neighbor(s). A neighbor or representative for each of the affected neighborhoods for the traffic utility boxes will be selected for an Art Jury. Art Jury names shall be included in the staff reports. 10. The Jury Evaluation Process: Box Art proposals submitted in response to a Box Art RFP will be reviewed by the Public Art Manager who will then forward all complete and eligible applications received by the deadline to the Public Works Department for review. Following this internal r eview, proposals shall be provided to the Art Jury for evaluation. a. Evaluation Criteria: The criteria used to select eligible artists and designs shall be in accordance with the approved Guidelines for Public Art (Appendix B) and in meeting the criteria as follows: 1. Evaluation of artistic excellence 2. Appropriateness of scale, form, content and design 3. Relationship to the social, cultural and/or historical identity 4. Experience in working on comparable projects 5. Artists (or lead artist of a team) must reside in San Luis Obispo county The Art Jury will evaluate all complete, eligible, Box Art proposals received by the deadline. If the number of qualifying applications does not meet the number needed; City staff and/or the Council may decide to reopen the selection process. Upon evaluating the qualifications provided in the Box Art proposals, the Art Jury will recommend to the appropriate Advisory Bodies the artist designs, totaling the amount of utility/traffic control boxes within a phase, and location. 11. Guidelines and Review Process for Public Art: The adopted Guidelines for Public Art (Appendix B) will apply in making a determination that the proposed project is acceptable to the City and should move forward in the selection and approval process. Box art designs and locations, as recommended by the Art Jury, shall be reviewed by the appropriate Advisory Bodies. The Cultural Heritage Committee (CHC) shall review for consistency with historical context of the surrounding area and the Architectural Review Commission (ARC) to ensure the design meets the adopted Guidelines for Public Art. Designs that do not garner the support of Advisory Bodies shall not proceed, unless appealed to City Council pursuant to Municipal Code Section 1.20. Staff shall present the final recommended Box Artist: Colleen Gnos (Before and After) Item 15 Packet Page 369 24 designs and locations to the City Council for final approval. 12. Artist Selection and Contract: Following the City Councils’ approval, the Public Art Manager shall enter into a public art contract agreement with the selected artists for the installation of utility box art. The Utility Box Art Artist Agreement is provided as Appendix O. 13. Artists’ Stipend: Selected artists shall be compensated for the application of their artwork and designs. Stipends are based upon the size of the utility box. The stipend amount shall be all-inclusive and cover costs incurred by the artist in the course of designing and installing the artwork. In addition, artists may apply for reimbursement of materials, with original receipts. A maximum value of reimbursement shall apply. The final selected artists will also receive an honorarium upon the completion of their artwork for their conceptual renderings. The approved artist stipend amount (as referenced in Exhibit A) shall be reviewed and updated prior to each Box Art phase. 14. Media and Materials Guidelines: The Media and Material Guidelines is provided as Exhibit D. These guidelines identify the prerequisite materials such as paints, primers and sealants required for the exterior box art murals. The approved Media and Materials Guidelines shall be reviewed and updated prior to each box art phase. 15. Permitting: The selected Artists are required to obtain a no-cost Encroachment Permit through the City’s Community Development Department prior to the painting of the utility box art mural. 16. Maintenance, Repairs, Modification of Utility/Traffic Control Boxes: The Public Works Department is responsible for maintaining City facilities, which includes all City-owned or City-sponsored public art. The City reserves the right to modify or remove artwork should a utility/traffic control box require maintenance, modifications or repairs as a result of unanticipated damages. Should this occur, the City shall provide public notification consistent with the City’s adopted Public Engagement and Notification policies regarding the affected public art. The City shall notify the affected artist(s) and provide him/her the opportunity to repair the affected mural. Should the artist be unable to repair the mural, the box art would be eligible for new public art in the subsequent phase of Box Art. Should the timing of the subsequent Box Art phase be greater than one year, the utility/traffic control box shall be reverted back to the standard utility/traffic control box color until it can be incorporated into the next phase of painting. 17. Archival and Deaccessioning of Box Art Murals: At the end of either the pre- determined artwork lifespan, or the deaccessioning of the utility boxes as a result of maintenance/repairs/relocation, the artwork shall be archived in a way to preserve the integrity and historical context of this public art program. a. Archival: The preservation of the box art murals shall include both print and electronic preservation that is accessible to the public. Print materials for the purpose of archival could include, but are not limited to, brochures, interactive coloring books, postcards, books, etc. Electronic archival could include, but are not limited to, digital images, virtual tours or database available via the City’s website. b. Deaccessioning: In instances where the physical utility box is decommissioned and no longer in use, the public art program shall identify and recommend options for the relocation and continued display of the public art mural. Deaccessioning of the utility boxes could include, but is not limited to, a box art memorial garden or an “adopt-a-box” program which would provide for ongoing public display of the artwork. The public art program shall incorporate the maintenance of any deaccessioned boxes on display as part of the maintenance program, unless otherwise specified. Item 15 Packet Page 370 25 BOX ART PROGRAM EXHIBITS (included in Public Art Policy as Appendix O) Exhibit A – Glossary of Terms Exhibit B – City-Owned Traffic Signal Utility Box & Box Art Map Exhibit C – Downtown Association Boundary Map Exhibit D – Media and Materials Box Art Program Policies Adopted by City Council as amended on July 19, 2016 Box Artist: Robert Maja Item 15 Packet Page 371 26 PRIVATELY FUNDED ART IN PUBLIC PLACES An important source of public art is that which is privately funded, but located in a public place. Usually, such works are commissioned by an individual, a group of individuals, a non-profit organization or a business or corporation. Whatever may be the reason for the offer of public art to be placed on City property, the offer triggers the following process. Submittal of a Proposal 1. Submittal Form. All proposals for privately funded public art placed on City property are submitted to the Public Art Manager on the Application for Privately Funded Public Art (Appendix H). The form must be accompanied by drawings, models, photographs or any other graphic depiction that will help to clearly define the artwork. All proposals must be for original works of art. (See Introduction – What is Public Art?) 2. Solicitation of Competitive Proposals. When a proposal is submitted, whether by a patron or by an artist, it is not necessary for the City to solicit additional competitive proposals for the same location from other artists. Evaluation of a Proposal 6. Evaluation Jury. Once the proposal is received by the Public Art Manager, s/he calls together a jury from a standing pool of resource individuals to judge the merits of the proposal. (See Selecting an Art Jury, pg. 8) 7. Evaluation Criteria. The jury applies the standard Guidelines for Public Art (Appendix B) in making a determination that the proposed project is acceptable to the City and should move forward in the approval process. 3. Evaluation Criteria for Historical Locations. Projects proposed for areas of high historical sensitivity, such as Mission Plaza and surrounding area, should be given the closest possible scrutiny to determine if the project would be an enhancement to the area. Projects which do not garner the unanimous support of the jury will not proceed. 4. Appeal Process. If the jury rejects a proposal, the patron has the right to appeal this decision to the City Council in accordance with the appeals procedures in Section 1.20.020 of the Municipal Code. The jury’s findings and rationale for rejecting the project will be made available to the Council when considering the appeal. Approval of a Proposal 1. Approval Process. Once a privately funded project is recommended for placement on City-owned property, it will be reviewed by the following departments and City advisory bodies. The Public Art Manager acts as the project manager for all such projects and is responsible for "shepherding" them through the following approval stages. It should be noted that, with the exception of the first step, this is the same approval process used for City - sponsored public art (a more detailed explanation of this process can be found in Part One – Evaluating and Approving Public Art). a. The Public Art Manager reviews the proposed project to assure that it complies with the City's Donation Acceptance Policy. (Appendix G). b. The Public Works Director or his designee(s) reviews the proposal to insure: Artist: Paul Reyburn Private Art In Public Space 547 Marsh Street, SLO Item 15 Packet Page 372 27 ▪ that the artwork's placement will not create undue difficulties for maintenance of the surrounding area. ▪ that the proposed materials are durable and will not create significant maintenance problems for the artwork itself. ▪ that any engineering or structural concerns are addressed c. The Risk Manager and the Public Works Department reviews the proposal to assess whether or not it provides undue risks or safety issues. d. The Architectural Review Commission reviews the proposal to assure that it meets the adopted Guidelines for Public Art. (Appendix B) e. In some cases, proposals may take additional review because of their nature, design or location. 2. Council Approval. Ultimately, the City Council provides final approval of the proposal. * See Appendix G for a flow chart of the process. Contract Preparation Upon conceptual approval of the project by the City Council, the patron and the City sign a contract establishing the terms of the proposed installation of privately funded public art in public places. The Council should be asked to delegate authority to sign the contract to the CM as part of the conceptual approval process. Appendix C contains a sample contract that should be adapted, as necessary, and used for this purpose. Issuing of Permits The donor is directed to prepare plans and specifications for the artwork or the Public Art Manager may seek approval from Council to use public art funds for plans and installation costs. See Part One - Public Art Installations, for the process to be followed for permitting and installation of the public art project. Labeling of Artwork 1. Plaque. The donor is directed to purchase and install a plaque for the artwork or the Public Art Manager may seek approval from Council to use public art funds for the plaque. If the donor wishes to purchase and install the plaque, the following standard format must use in order to avoid the use of donated public art for advertising purposes. • title of artwork • artist's name • patron's name • date of completion • material(s) used (optional) • short explanation of work (optional) 2. Deviation from Standard Plaque. All requests to deviate from the standard plaque are made to the City Manager or their designee. Should the City Manager or his/her designee deny the proposed deviation, the patron may appeal this decision to the City Council in accordance with the appeals procedures in Section 1.20.020 of the Municipal Code. Item 15 Packet Page 373 28 Final Acceptance 1. Maintenance. The Public Art Manager provides the Public Works Department with a City's Public Art Maintenance Record Form (Appendix N). See Part One - Maintenance and Repair, for additional information. 2. Inspection and Acceptance. All donated projects on public property must have final inspection approval by the City's Building Division and by the Public Art Manager. See Appendix E – Final Acceptance. 3. Ownership. Upon completion, the artwork becomes the property of the City. Dedication of Artwork Once installation of the artwork is complete, the Public Art Manager organizes a dedication ceremony that presents the piece to the community and recognizes the artistic efforts of the artist. Item 15 Packet Page 374 29 MATCHING GRANTS FOR PUBLIC ART When the Visual Arts in Public Places program was adopted in 1990, it included a section which established a matching grant fund to encourage the inclusion of public art in private construction projects. The program was seldom used and in 2000, with the passage of Ordinance No .1372 requiring public art in privately-funded, non-residential projects, the matching grant program was rescinded. In 2005, with receipt of the two requests for matching funds, and recognizing the benefits of leveraging public and private dollars, staff felt a matching fund component to the public art program might be an excellent way to expand public art opportunities within the City, especially during a time of limited fiscal resources. According to the Resolution No. 9656 (see Appendix I), projects seeking matching grant funds will require City Council approval, consistent with the City’s Donation Acceptance Policy. Furthermore, projects eligible for matching grant funds should provide a clear public benefit and advance the City’s public art goals. The resolution requires that Council determine the appropriate level of matching funds up to a dollar-for-dollar level for each request. Grant Criteria The council will use the following criteria in evaluating funding requests: a. Artwork shall be located 1) on publicly owned property or right -of-way, or 2) on private property if the artwork is secured through a public art easement, b. Artwork should promote the City’s Goals and Objectives of the Public Art Program c. The applicant has demonstrated sufficient experience and ability to successfully complete the public art project. d. Projects which make creative and efficient use of resources will be given preference e. Artwork shall be consistent with the City’s Public Art Guidelines f. Artwork designed and/or sponsored by a San Luis Obispo resident, business or organization will be given preference. g. The City shall be named as an additional insured and indemnified during construction and installation of the public artwork. h. Permanent artwork receiving City funds shall become City property. Summary of the Process It should be noted that, with a few exceptions, this is the same approval process used for City-sponsored public art (a more detailed explanation of this processes can be found in the section titled City Funded Public Art). 1. A proposal for matching grant funds is submitted to the Public Art Manager. The proposal must include: description of proposed work, materials/size, location and requested dollar amount of grant. All proposals must be for original works of art. 2. Council approves recommendation for matching grant request. 3. Public Art Manager solicits artist's qualifications and/or proposals. 4. Public Art Manger appoints an art jury. 5. Artist/artwork is selected by jury. 6. Proposed artwork is reviewed by Public Works staff, as appropriate. 7. Proposed artwork is reviewed by the Cultural Heritage Committee (CHC), the Parks and Recreation Commission (PRC) and/or the Mass Transportation Committee (MTC), as appropriate. 8. Architectural Review Commission (ARC) approves artwork and forwards recommendation to City Council. Item 15 Packet Page 375 30 9. City Council approves artwork. 10. Public Art Manager prepares public art contract. 11. Public Art Manager receives matching dollars from applicant. 12. Public Art Manager secures planning/construction permits and works with artist to fabricate artwork. 13. Artwork is installed. 14. Public Art Manager inspects the artwork and compiles the maintenance information. 15. Final inspection approval by the City's Building Division 16. Upon completion, the artwork becomes the property of the City. 17. Once installation of the artwork is complete, the Public Art Manager organizes a dedication ceremony that presents the piece to the community and recognizes the artistic efforts of the artist. * See Appendix J for a flow chart of the process. Item 15 Packet Page 376 31 PUBLIC ART IN PRIVATE DEVELOPMENT On August 15, 2000, the City Council passed an Ordinance Relating to Public Art in Private Development. The ordinance is designed to further enhance the aesthetic environment of the City by requiring private property owners and developers to incorporate a piece(s) of art in new developments or substantially improved developments in the City, or voluntarily elect to purchase a piece of art and donate it to the City or pay a public art in-lieu fee. (See Appendix K for enabling legislation.) The Public Art in Private Development program is designed to allow the applicant some flexibility in meeting the requirements of the ordinance. If the applicant chooses to incorporate a piece of public art into the project, s/he may choose to send out a Request for Proposals (RFP), a Request for Qualifications (RFQ), or purchase an already existing piece of art. While this is the sole responsibility of the developer, the Community Development Department assists by informing the applicant of options and opportunities, providing a packet of resources and the name and phone number for the Art Council’s Art in Public Places committee chair, who will guide the applicant through the RFP/RFQ process, if so desired. The following sections provide details for processing public art in private development, including 1) placement of public art on private property, 2) accepting public art donated to the City by a private developer, and 3) payment of the art in-lieu fee. Placement of Public Art In Private Development 1. Application Process An application for placement of public art on private property is submitted to the Community Development Director and must include the following (see Appendix L, section A): a. Preliminary sketches, photographs or other documentation of sufficient descriptive clarity to indicate the nature of the proposed public art, including an accurate description of the colors and materials to be used. b. An appraisal or other evidence of the value of the proposed public artwork, including acquisition and installation costs. c. A site plan clearly showing the location of the public art and its relation to pedestrian paths of travel on the site and in the vicinity, including adjacent rights-of-way. d. An elevation or perspective rendering showing the streetscape view of the public art, including the street elevations of adjacent properties. e. A narrative statement to demonstrate that the public art will be displayed in an area open and freely available to the general public, or that public accessibility will be provided in an equivalent manner based on the characteristics of the artwork or its placement on the site. f. Draft covenants, conditions and restrictions (CC&Rs) (see Appendix N), to be recorded with the County Thiessen Design – Higuera Plaza Private Development Art Item 15 Packet Page 377 32 Recorder, which require the property owner, successor in interest, and assigns to: (1) Maintain the public art in good condition as required by the City’s Guidelines for Public Art. (2) Indemnify, defend and hold the City and related parties harmless from any and all claims or liabilities from the public art, in a form acceptable to the City Attorney. (3) Maintain liability insurance, including coverage and limits as may be specified by the City’s Risk Manager. * See Appendix M for flow chart of the process. 2. Approval for Placement of Public Art on Private Property a. The Community Development Director forwards the completed application to the Public Art Manager who convenes a public art jury to review the proposed art using the adopted Guidelines for public art and selection criteria. (Appendix B) b. Upon recommendation of the public art jury, the public art application is forwarded to the Architectural Review Commission for review as to consistency with the Guidelines for public art. (Appendix B) c. All approvals for placement of public art on private property will be obtained prior to issuance of a building permit. Public Art Donated to the City by a Private Developer 1. Application Process An application for public art donated to the City by a private developer is submitted to the Community Development Director and must include the following (see Appendix I, section 3): a. Preliminary sketches, photographs or other documentation of sufficient descriptive clarity to indicate the nature of the proposed public art, including an accurate description of the colors and materials to be used. b. An appraisal or other evidence of the value of the proposed public artwork, including acquisition and installation costs. c. A written agreement executed by or on behalf of the artist who created the public art that expressly waives his or her rights under the California Art Preservation Act or other applicable law. (See Appendix H) 2. Approval of Public Art Donated to the City by a Private Developer a. Prior to the issuance of grading and building permits, the applicant presents the application for acceptance of public art donated to the City to the Community Development Director for review. b. The Community Development Director forwards the completed application to the Public Art Manager who then convenes a public art jury to review the proposed public art using adopted Guidelines and public art selection criteria. (Appendix B) c. Upon recommendation of the public art jury, the public art application is forwarded to the Architectural Review Commission for review as to consistency with the adopted Guidelines for Public Art. (Appendix B) d. Upon the recommendation of the Architectural Review Commission, the application is forwarded to the City Council, which has the sole authority to accept, reject or conditionally accept the donation. Item 15 Packet Page 378 33 Payment of Art In-Lieu Fee If the payment of an art in-lieu fee is voluntarily elected, the minimum cost of the public art, including installation, is determined by the amount equal to one-half of one percent (.5%) of that portion of the total construction costs in excess of $100,000, not to exceed $50,000 for each building permit. (See ordinance, Appendix K) Certificate of Occupancy 1. A Certificate of Occupancy requires full compliance with one of the following: a. The approved public art has been placed on the site of the approved project, in a manner n satisfactory to the Chief Building Official and the Public Art Manager. b. Donation of the approved public art has been accepted by the City Council. c. Public art in-lieu fees have been paid. 2. If public art has been placed on the site of the approved project, the applicant must execute and record with the County Recorder covenants, conditions and restrictions (CC&Rs), which require the property owner to adhere to the following guidelines. (Appendix N) a. Maintain the public art in good condition as required by the City’s Public Art Guidelines. b. Defend and hold the City and related parties harmless from any and all claims or liabilities from the public art, in a form acceptable to the City Attorney. c. Maintain liability insurance, including coverage and limits as may be specified by the City’s Risk Manager. Ownership of Public Art 1. All public art placed on the site of an applicant’s project remains the property of the applicant, as does the obligation to provide all maintenance necessary to preserve the public art in good condition. 2. Maintenance of public art includes preservation of the artwork in good condition to the satisfaction of the City, protection of the public art against physical defacement, mutilation or alteration and securing and maintaining fire and extended coverage of insurance and vandalism coverage in an amount to be determined by City’s Risk Manager. Failure to maintain the public art will be declared to be a public nuisance. 3. If the owner fails to maintain the public art or fails to meet appropriate insurance requirements, upon reasonable notice, the City may perform all necessary repairs and maintenance or purchase insurance, and the associated costs become a lien against the real property. 4. All artwork donated to the City becomes the property and responsibility of the City upon acceptance by the City Council. Item 15 Packet Page 379 34 Removal or Alteration of Public Art 1. Public art installed on or integrated into a construction project cannot be removed or altered without the approval of the City Council. 2. If any public art provided on a development project is knowingly removed by the property owner without prior approval, the property owner will be required to contribute funds equal to the development project’s original public art requirement to the City’s Public Art In-Lieu account, or replace the removed artwork with one that is of comparable value and approved by the City Council. The City may, in addition, pursue any other available civil or criminal remedies or penalties. Use of Public Art In-Lieu Funds Per the Ordinance relating to public art in private development, in-lieu fees are deposited in an account maintained by the City Finance Director and with Council approval may be used for acquisition, installation, and improvement of public art as well as equipment and supplies that support the program. Movimiento Mundial (World Movement) – 2012 Muralist Robert Maja SLO City/County Public Library Grant Partnership Item 15 Packet Page 380 35 APPENDICES A - O A. Resolution 6811 – Adopting Visual Arts Program B. City Funded Public Art Process Flow Chart C. Guidelines for Public Art D. Sample Artist Contract E. Public Art Final Acceptance Letter F. Application to Donate Art to the City G. Privately Funded Art Process Flow Chart H. Privately Funded Public Art Application and Waiver I. Resolution 9659 – Adopting Matching Grants for Public Art Program J. Matching Grants for Public Art Flow Chart K. Ordinance 1372 – Adopting Public Art in Private Development Program L. Planning Application Checklist & Planning Application for Private Development M. Privately Funded Public Art Process Flow Chart N. Public Art Maintenance Record & Public Art Maintenance Covenant O. Box Art Program Exhibits A-D (Glossary, Box Art Map, Downtown Boundary Map, Box Art Media & Materials) Item 15 Packet Page 381 3 INTRODUCTION What is Public Art? The City is driven to encourage Public Art that respects our past and embraces the future; supporting all members and facets of the community and not in contradiction with its core values: civility, sustainability, diversity, inclusivity, regionalism, partnership and resiliency. The City of San Luis Obispo strives to incorporate these values into public spaces through the proliferation of public art. Public Art develops from the engagement of an artist with public space. Within the realm of creating public art, artists encounter people, history, and process. The resulting artwork represents the diverse response to those factors by individual artists, leaving the question, “what is public art?” It's easier to describe what public art isn’t. Fancy "off-the-shelf" benches, fountains, and trash receptacles; upgraded tile, paving, or other conventional architectural finishes and ornamentation; standard landscaping; architectural lighting; and other similar treatments which do not involve original, creative work by an individual or group are not normally considered public art. For example, purchasing a pre-fabricated fountain and installing it in a park would be landscaping but not public art, since the piece is a stock item and its design does not necessarily involve an original or creative effort. However, if the fountain included an original ceramic or bronze sculpture, tile mosaic, or other original or creative feature it could be considered public art. The artwork doesn't necessarily have to be one-of-a-kind, or designed only for that location -- it could be one of a limited series of castings (in the case of sculpture) that has been thoughtfully integrated with a project. The boundary between architectural ornamentation and art is not always clear. For example, in decorating a blank wall of a parking garage with a series of metal screeds and painted wall panels, the architect's effort might be considered public "art" if it were an original work, went beyond typical or stock architectural treatment, and met the city's public art guidelines. World Trade Center 9/11 Memorial -2015 “Standing Tall”, Artist Kathleen Caricof Item 15 Packet Page 382 4 Definitions 1. The City shall accept a “Work of Art” that commemorates ideas, ideals and concepts – not individual and actual people. 2. "Visual Art in Public Places' or "Public Art" means any visual work of art displayed in a publicly visible location: (a) in a City-owned area, (b) on the exterior of any city-owned facility, ( c) within any city-owned facility in areas designated as public area, lobbies, or public assembly areas, or (d) on non-city-owned property if the work of art is installed or financed, either wholly or in part, with city funds or grants procured by the City; and if on private property, secured by a public art agreement between the City and the landowner. 3. "Work of Art” includes, but is not limited to, sculpture, monument, mural, fresco, bas-relief, mobiles, photography, drawing, handcrafts, painting, fountain, landscape composition, banners, mosaic, ceramic, weaving, carving, and stained glass. "Work of art" is the creative result of individual or group effort, and is either unique or of limited - issue nature, and is normally not mass-produced or intended primarily for a commercial market. Work of art" does not normally include landscaping, paving, architectural ornamentation, or signs as defined by Chapter 15.40 of the Municipal Code. 4. "Capital Construction Project” means any project listed in the City's Financial Plan Capital Improvement Program, and paid for wholly or in part by the City of San Luis Obispo for public benefit. "Capital construction project" includes, but is not limited to building construction, addition, and remodel; parks; plazas; creek improvements and flood protection projects; bridges; streets, sidewalks, bikeways, trails other public transportation improvements; parking facilities, and similar public facilities as determined by the Community Development Director. 5. Construction Cost means the cost in dollars, as approved by the City Council or the City Administrative Officer, to construct a project. "Construction Cost" shall not include land acquisition, design, operation, or maintenance costs. 6. Eligible Project means a capital construction project which is not exempt under the provisions of this resolution, or by City Council or City Manager action. Item 15 Packet Page 383 Page intentionally left blank. Item 15 Packet Page 384