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HomeMy WebLinkAbout02-17-2026 Agenda Packet City Council AGENDA Tuesday, February 17, 2026, 5:30 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Council meetings may be viewed remotely on Channel 20, the City’s YouTube Channel, and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. INSTRUCTIONS FOR PUBLIC COMMENT: Public Comment prior to the meeting (must be received 3 hours in advance of the meeting): Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401. Email - Submit Public Comments via email to emailcouncil@slocity.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Pages 1.CALL TO ORDER Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order. 2.PLEDGE OF ALLEGIANCE Council Member Shoresman will lead the Council in the Pledge of Allegiance. 3.PRESENTATIONS 3.a JOINT PRESENTATION FROM CAL POLY AND SLO POLICE DEPARTMENT REGARDING PLANNING EFFORTS FOR ST. PATRICK'S DAY 3.b CITY MANAGER REPORT Receive a brief report from City Manager Whitney McDonald. 4.PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA Not to exceed 15 minutes. The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. 5.CONSENT AGENDA Not to exceed 15 minutes. 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. Recommendation: To approve Consent Calendar Items 5a to 5g. 5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Recommendation: Waive reading of all resolutions and ordinances as appropriate. 5.b MINUTES REVIEW - FEBRUARY 3, 2026 COUNCIL MINUTES 13 Approve the minutes of the City Council meeting held on February 3, 2026. 5.c APPROVAL OF THE 2026-27 COMMUNITY DEVELOPMENT BLOCK GRANT RECOMMENDATIONS 21 Recommendation: Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2026-27 Community Development Block Grant (CDBG) Program Funding Recommendations” for a total of $284,404 5.d AUTHORIZE THE POLICE DEPARTMENT TO SUBMIT A GRANT APPLICATION TO THE OFFICE OF TRAFFIC SAFETY FOR FY 2026- 27 AND ADOPT A RESOLUTION AUTHORIZING THE ACCEPTANCE OF FUNDS FOR THE FY 2025-26 TOBACCO GRANT PROGRAM 149 Recommendation: Approve submission of a FY 2026-27 grant application to the California Office of Traffic Safety in an amount not to exceed $180,000. 1. If the grant is awarded, authorize the City Manager and the Chief of Police to execute grant related documents and authorize the Finance Director to make the necessary budget adjustments upon the award of the grant. 2. Approve a Resolution titled: “A Resolution of the Council of the City of San Luis Obispo, California, authorizing the acceptance of grant funds in the amount of $74,276 from the State of California Department of Justice, Office of Attorney General, Tobacco Grant Program to increase education and enforcement programs focusing on reducing the illegal sale of tobacco products to minors in the city.” 3. 5.e AUTHORIZATION TO EXECUTE A CONTRACT FOR 911 CALL HANDLING EQUIPMENT AND SERVICES 155 Recommendation: Authorize the City Manager to execute a five-year contract with AT&T for 911 call handling equipment and services; and 1. Waive formal bids and authorize use of California Department of Technology Agreement 6138-2020 to procure this purchase as allowed under 03.24.060E of the City of San Luis Obispo Municipal Code. 2. 5.f FINAL ADOPTION OF ORDINANCE AMENDING MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS) 267 Recommendation: Adopt Ordinance No. 1755 (2026 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” increasing the per person contribution limit from $250 to $500. 5.g APPROVE A SIDE LETTER TO THE JULY 1, 2025, TO JUNE 30, 2028, MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION REGARDING STANDBY PAY 275 Recommendation: Adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Side Letter to the July 1, 2025, through June 30, 2028, Memorandum of Understanding between the City of San Luis Obispo and the San Luis Obispo City Employees’ Association.” 6.PUBLIC HEARING AND BUSINESS ITEMS 6.a REVIEW OF FY 2025-26 SECOND QUARTER BUDGET REPORT (60 MINUTES) 283 Recommendation: Receive and file the FY 2025-26 Second Quarter Budget Report; and 1. Appropriate $3,468,954 in FY 2024-25 unassigned fund balance as detailed in the report; and 2. Appropriate $2,000,000 in FY 2024-25 assigned fund balance and authorize an Additional Discretionary Payment to CalPERS of $3,506,187; and 3. Appropriate the $20,000 National League of Cities Health and Wellbeing award of $20,000 to the Community Development Department’s non-staffing operating budget for the purchase of Tolemi BuildingBlocks software. 4. 6.b REQUEST TO ADVERTISE THE HIGUERA COMPLETE STREETS AND REVISED 50 HIGUERA WIDENING PROJECTS FOR CONSTRUCTION (90 MINUTES) 313 Recommendation: Higuera Complete Streets Project Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $2,000,000 from the Infrastructure Investment Fund to support the Higuera Complete Streets Project, Specification Number 2001057”); and, 1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Accepting a Future Automobile Level of Service Deficiency at the Intersection of Higuera Street and Los Osos Valley Road in Connection with the Higuera Complete Streets Project, Specification Number 2001057”; and, 2. Authorize transfers to the Higuera Complete Streets Project (Account 2001057) from the following capital project accounts: 3. $500,000 from Prado Creek Bridge Replacement (No. 2091252) a. $204,847 from Active Transportation Plan Implementation (No. 2000608) b. $100,000 from Vision Zero Implementation (No. 2000073) c. $50,000 from the Traffic Signal Maintenance & Replacements (No. 2001003) d. $120,000 from Water Valve Cover Adjustments (No. 2001005) e. $50,000 from Sewer Valve Cover Adjustments (No. 2000084); and, f. Approve the project , authorize the City Engineer to approve any minor refinements to final plans and specifications prior to advertisement, and authorize staff to advertise for bids for the Higuera Complete Streets Project, Specification Number 2001059; and, 4. Authorize the City Manager to award the Construction Contract for the Higuera Complete Streets Project pursuant to Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly disclosed funding amount of $12,960,700; and, 5. Authorize the City Engineer to approve Contract Change Orders for the Higuera Complete Streets Project up to the available project budget, including any amendments authorized by the City Manager; and, 6. Authorize the use of up to $200,000 in unspent Higuera7. Complete Streets Project capital funds to support increased street sweeping obligations following project completion. 50 Higuera Widening Project Approve project for the revised 50 Higuera Widening Project, Specification No. 2091294; and, 8. Authorize staff to advertise for bids for the 50 Higuera Widening Project, Specification No. 2091294; and, 9. Authorize the City Manager to award the Construction Contract for the 50 Higuera Widening Project if the lowest responsible bid is within the Engineer’s Estimate of $315,000; and, 10. Authorize the City Engineer to approve Contract Change Orders for the 50 Higuera Widening Project up to the available project budget; and, 11. Approve the transfer of $22,600 from the 50 Higuera Widening Project Account (No. 2091294) to the New Streetlights CIP Account (No. 2001016); and, 12. Authorize the Finance Director to approve the transfer of any remaining unspent State Urban Highway Account project funds not required for construction of the 50 Higuera Widening Project to the Higuera Complete Streets Project (Specification No. 2001057). 13. 6.c GRANT AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART (30 MINUTES) 389 Recommendation: Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo finding that a Grant Agreement with the San Luis Obispo Museum of Art is of public benefit in accordance with California Government Code Section 53083 and approving the Grant Agreement” to: Find that a Grant Agreement serves the public interest of the City of San Luis Obispo by advancing arts and culture, economic development, and other public benefits; and 1. Approve the Grant Agreement between the City of San Luis Obispo and the San Luis Obispo Museum of Art and authorize the City Manager to execute the agreement in a final form satisfactory to the City Attorney. 2. 7.LIAISON REPORTS AND COMMUNICATIONS Not to exceed 15 minutes. Council Members report on subcommittee assignments, listed below, and 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 their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) Mayor Stewart Vice Mayor Francis Council Member Boswell Council Member Marx Council Member Shoresman SLO Council of Governments Airport Land Use Community Action Partnership Air Pollution Control District Downtown Association Board Regional Economic Action Coalition Nacimiento Water Project SLO Climate Coalition County Water Resources Advisory Committee CP Campus Planning Committee CA Men’s Colony Advisory Committee Zone 9 Advisory Committee Local Agency Formation Commission Homeless Services Oversight Committee Performing Arts Center Commission Integrated Waste Management Authority SLO Regional Transit Authority Visit SLO County Advisory Committee Central Coast Clean Energy 8.ADJOURNMENT The next Regular Meeting of the City Council will be held on March 3, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. LISTENING ASSISTIVE DEVICES for the hearing impaired - see the 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) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. City Council meetings are televised live on Charter Channel 20 and the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. 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 https://www.slocity.org/government/mayor-and-city-council/agendas-and- minutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114. Page 12 of 444 1 Council Minutes February 3, 2026, 5:30 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Council Members Present: Council Member Mike Boswell, Council Member Jan Marx, Council Member Michelle Shoresman, Vice Mayor Emily Francis, Mayor Erica A. Stewart City Staff Present: City Manager Whitney McDonald, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk _____________________________________________________________________ 1. CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on February 3, 2026 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart. 2. PLEDGE OF ALLEGIANCE Council Member Marx led the Council in the Pledge of Allegiance. 3. PRESENTATIONS 3.a BLACK HISTORY MONTH Mayor Stewart presented a proclamation declaring February 2026 as Black History Month to John King representing the NAACP San Luis Obispo County Chapter. 3.b INTRODUCTIONS - POLICE DEPARTMENT AND PUBLIC WORKS & UTILITIES DEPARTMENT Police Chief Rick Scott introduced Aaron Schafer, Deputy Police Chief. Public Works & Utilities Director Aaron Floyd introduced Madeline Kascinta, Assistant Public Works Director and Shawna Scott, Assistant Utilities Director. 3.c CITY MANAGER REPORT City Manager Whitney McDonald provided a report on upcoming projects. Page 13 of 444 2 4. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA Public Comment: John Pranjic Shawn Harris Bob Goldman Candace DeGeare Steve Delmartini Gene Nelson --End of Public Comment-- 5. CONSENT AGENDA Council Member Boswell asked that Item 5g be pulled from the Consent Agenda. Vice Mayor Francis asked that Item 5h be pulled from the Consent Agenda. Public Comment: None --End of Public Comment-- Motion By Council Member Marx Second By Council Member Shoresman To approve Consent Calendar Items 5a to 5f. Ayes (5): Council Member Boswell, Council Member Marx, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart CARRIED (5 to 0) 5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate. 5.b MINUTES REVIEW - JANUARY 20, 2026 COUNCIL MINUTES Approve the minutes of the City Council meeting held on January 20, 2026. 5.c AMEND THE COUNCIL POLICIES AND PROCEDURES MANUAL AND THE ADVISORY BODY HANDBOOK TO ADJUST THE ANNUAL ADVISORY BODY RECRUITMENT PROCESS 1. Adopt Resolution No. 11624 (1026 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Page 14 of 444 3 amending its Council Policies and Procedures Manual,” to account for the change in time of annual recruitment for City Advisory Bodies; and 2. Adopt Resolution No. 11625 (2026 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the Advisory Body Handbook to adjust the annual recruitment, oaths of office, and election of chair and vice chair deadlines”; and 3. Extend the Advisory Body Members’ terms and the elected Chair/Vice Chair terms that expire on March 31, 2026, to expire on June 30, 2026. 5.d AMENDMENT NO. 1 TO AMENDED AND RESTATED EXCLUSIVE NEGOTIATING AGREEMENT WITH SMART SHARE HOUSING SOLUTIONS Approve the draft Amendment No. 1 to Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions, in a final form satisfactory to the City Attorney. 5.e ADVISORY BODY APPOINTMENT FOR AN UNSCHEDULED VACANCY ON THE HUMAN RELATIONS COMMISSION Confirm the appointment of Jennifer Chassman Browne to the Human Relations Commission (HRC) for the remainder of the vacated term expiring June 30, 2026, and a consecutive 4-year term expiring June 30, 2030. 5.f AUTHORIZATION TO ACCEPT TECH CLEAN CALIFORNIA QUICKSTART GRANT TO SUPPORT LOCAL ENERGY EFFICIENCY RETROFITS IN MOBILE AND MANUFACTURED HOMES 1. Accept the TECH Clean California QuickStart Award; and 2. Authorize the City Manager, or their designee, to execute the draft grant agreement and related documents and approve the budget changes necessary to appropriate the grant amount upon acceptance of the grant award; and 3. Authorize the City Manager, or their designee, to execute the draft Community Partnership Agreements Between the City of San Luis Obispo and: Community Action Partnership of San Luis Obispo, Page 15 of 444 4 Diversity Coalition of San Luis Obispo County, and San Luis Obispo Climate Coalition. Item pulled from Consent by Council Member Boswell 5.g REVIEW OF A REQUEST TO REMOVE ONE TREE ASSOCIATED WITH THE SLO REP THEATRE PROJECT LOCATED AT 614 MONTEREY STREET Community Development Director Tway and City Arborist Walter Gault responded to questions from Council Public Comments: Kevin Harris, SLO REP Daniel Glidden ---End of Public Comment--- Motion By Council Member Boswell Second By Mayor Stewart Adopt Resolution No. 11626 (2025 Series) entitled, “Resolution of the City Council of the City of San Luis Obispo, California approving the removal of one (1) Coast Live Oak Tree at 614 Monterey Street and subsequent replanting of one (1) tree on-site and four (4) trees off-site with an Addendum to the Certified Environmental Impact Report.” Ayes (4): Council Member Boswell, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart Noes (1): Council Member Marx added for the record "I feel it is a real tragedy of errors, and I don't want to ever see something like this happen in the city again." CARRIED (4 to 1) Mayor Stewart announced that due to the large number of people here for Item 7a it will be heard after 5h and then Council will hear Item 6a. Item pulled from Consent by Vice Mayor Francis 5.h APPROVE A DRAFT LETTER TO LEGISLATORS REGARDING DIABLO CANYON POWER PLANT Page 16 of 444 5 Public Comments: Kara Woodruff Gene Nelson Rachel Whalen Susannah Brown Ben Lippert Aaryn Abbott ---End of Public Comment--- Motion By Council Member Shoresman Second By Vice Mayor Francis Approve sending a letter to members of the Calif ornia State Legislature on behalf of the City of San Luis Obispo titled “Request for State Legislation Supporting Coastal Land Conservation and Restoration of Tax Revenue for Impacted School Districts and Local Government Service Providers Related to Diablo Canyon Power Plant”as amended at the meeting. Ayes (5): Council Member Boswell, Council Member Marx, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart CARRIED (5 to 0) 7. STUDY SESSION 7.a LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS AND MAINTENANCE OVERVIEW STUDY SESSION Assistant City Manager Scott Collins, Parks and Recreation Director Greg Avakian and Recreation Manager Devin Hyfield provided an in -depth staff report and responded to Council questions. Public Comments: Terri Benson Darren Avrit Jeff Spevack (Speevack) Amy Zakaria Steve Silberstein Tyler Coari ---End of Public Comment--- ACTION: By consensus the Council provided the following direction: 1. To receive and file the presentation on the Laguna Lake Golf Course Operations and Maintenance. Page 17 of 444 6 2. To continue operations of the Laguna Lake golf course and move forward on the Pro Shop renovation and the pedestrian/cart bridge replacement projects as soon as possible. 3. Explore ideas (uses) to generate new sources of revenue by looking at how we can utilize some of underutilized space. 6. PUBLIC HEARING AND BUSINESS ITEMS 6.a INTRODUCTION OF AN ORDINANCE TO AMEND MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS) Deputy City Manager Greg Hermann and City Clerk Teresa Purrington provided an overview of the report and responded to questions. Motion By Council Member Marx Second By Council Member Boswell To introduction Ordinance No. 1755 (2026 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” increasing the per person contribution limit from $250 to $500 with the following correction to the Ordinance: SECTION 1. c. The Council has considered and affirms the statement of purpose and intent set forth herein and determines the amended and decreased increased contribution limits adopted herein further and support the stated purpose and intent. Ayes (5): Council Member Boswell, Council Member Marx, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart 4. CARRIED (5 to 0) Page 18 of 444 7 8. LIAISON REPORTS AND COMMUNICATIONS Due to the late hour Liaison Reports and Communication were continued to the next meeting. 9. ADJOURNMENT The meeting was adjourned at 11:01 p.m. The next Regular City Council Meeting is scheduled for February 17,2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. APPROVED BY COUNCIL: XX/XX/202X Page 19 of 444 Page 20 of 444 Item 5c Department: Community Development Cost Center: 4008 For Agenda of: 2/17/2026 Placement: Consent Estimated Time: N/A FROM: Timmi Tway, Community Development Director Prepared By: David Amini, Senior Planner SUBJECT: APPROVAL OF THE 2026-27 COMMUNITY DEVELOPMENT BLOCK GRANT RECOMMENDATIONS RECOMMENDATION Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2026-27 Community Development Block Grant (CDBG) Program Funding Recommendations” for a total of $284,404 (Attachment A.) POLICY CONTEXT The approved funding priorities and proposed funding recommendations from the Human Relations Commission (HRC) align with the City’s Major City Goals for FY 2025 -27 for Goal 3, Housing and Homelessness, specifically to: Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development. Collaborate with local non-profit partners, non-governmental agencies, the county, the state, and federal governments to advocate for increased funding and implementation of comprehensive and effective strategies to prevent and reduce homelessness. The 2026-27 CDBG program funding recommendations allow the City to further implement the General Plan 6th Cycle Housing Element by satisfying the following on- going programs: Housing Element Program 1.7 Continue to support local and regional solutions to homelessness by funding supportive programs, services, and housing solutions. Housing Element Program 4.7 Affirmatively Further Fair Housing. Housing Element Program 6.17 Financially assist in the development of affordable housing. Page 21 of 444 Item 5c Housing Element Program 8.11 Continue to provide resources that support local and regional solutions to meet the needs of the homeless. DISCUSSION Background The CDBG program is administered through the U.S. Department of Housing and Urban Development (HUD) and provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. As an Urban County under the CDBG program, the County of San Luis Obispo allocates funding to local jurisdictions in three separate program areas: Public Services, Development of Affordable Housing and/or Public Facilities, and Program Administration/Capacity Building. The City of San Luis Obispo is anticipated to receive an estimated allocation for the 2026-27 funding cycle of $458,347 as a participant in San Luis Obispo County’s Urban County Program. The total funding allocations allowed per category are as follows pursuant to applicable regulations: Jurisdiction Estimated total Allocation County Admin Allocation (65% of 20%) City Admin Allocation (35% of 20%) City Public Services Allocation (15%)1 City Remaining Funds Available for 2026-27 Affordable Housing and Public Facilities (65%) City of San Luis Obispo $526,836 $68,489 $36,879 $79,025 $342,443 Available City Funds Total: $458,347 The CDBG Program allows for a 20% Administration allowance. The City and County share the administration portion of funding in a 35% (City) /65% (County) split of the 20% Administration allowance, which was the negotiated split between the City and County as part of the regional effort to administer the reporting and administration requirements for a Consolidated Plan2 for the 2025-2029 program years. The City’s 35% of the 20% Administration allowance of funding ($36,879) is evenly divided between Administr ation and Capacity Building uses, which cover staff time spent administering the CDBG program (Administration), as well as staff time spent planning affordable housing projects through collaboration with regional providers (Capacity Building). The 15% public services allocation is for applicants proposing service-based activities. 1 Awards made for public services may not exceed 15 percent of the total amount of CDBG funds available pursuant to 42 U.S.C. 5305 (a)(8). 2 The Consolidated Plan is a five-year strategic planning document for the Urban County of San Luis Obispo the “County”) that establishes the goals for the County’ s community development and affordable housing activities. The U.S. Department of Housing and Urban Development ( HUD) requires that San Luis Obispo County outline a vision for an effective and coordinated community development strategy. Page 22 of 444 Item 5c The remaining 65% of funding is made available for applicants proposing development of affordable housing or public facilities. The table above illustrates the amount of funds available to distribute for project applications after the administration allocation is removed from the total City allocation. The City of San Luis Obispo received a total of seven applications for the 202 6-27 Community Development Block Grant (CDBG) program, requesting a total of $1,031,792. A total of $104,025 was requested for the public services category by two separate applicants, and a total of $890,888 was requested for the public facilities/housing projects category by three separate applicants. The full list of applicants and their funding requests is below in Table 1. Applications were received from Community Partnership of San Luis Obispo (CAPSLO), 5 Cities Homeless Coalition (5CHC), San Luis Obispo Nonprofit Housing Corporation (SLONP), the City of San Luis Obispo, and People’s Self -Help Housing. After allocation of the County’s administration costs, there is $458,347 available for allocation to applicants (up to $79,025 for service-based applications, and $342,443 for affordable housing or public facility projects). The City must submit recommended funding amounts to the County by February 20, 2026. County staff will hold a hearing and present the Action Plan to the Board of Supervisors in April 2026, and subsequently submit the Action Plan to HUD once approved. The 202 6 Program Year will begin July 1, 2027, and end June 30, 2028. Previous Council or Advisory Body Action On October 21, 2025, the City Council approved the Human Relations Commission’s recommended funding priorities for the 2026-27 CDBG funding year. The ranked priorities established by the City Council are: 1. Provide emergency and transitional shelter, homelessness prevention and services. 2. Develop and enhance affordable housing for low and very-low income persons. 3. Enhance economic development (to include seismic retrofit, economic stability, low - and moderate-income jobs). 4. Promote accessibility and/or removal of architectural barriers for disabled and elderly. On November 5, 2025, the Human Relations Commission (HRC) reviewed the applications for funding and considered a staff -recommended funding allocation. After deliberation, the HRC approved the staff recommended funding allocation, as follows: Page 23 of 444 Item 5c Table 1. HRC-Approved Funding Allocation City 2026-27 CDBG Funding Recommended Funding Requested No. Applicant Activity Public Services 1 Community Action Partnership of San Luis Obispo (CAPSLO) CAPSLO Prado Homeless Services Center (Prado HSC) 2026-27 $67,172.00 $79,025.00 2 Peoples' Self- Help Housing Supportive Housing Services $11,853.00 $25,000.00 SUBTOTAL $79,025.00 $104,025.00 Housing and Public Facilities 3 San Luis Obispo Nonprofit Housing Corporation (SLONP) Monterey Family Apartments $173,943.00 $722,388.00 4 Access Support Network Adriance Court Roofing $70,000.00 $70,000.00 5 CAPSLO Energy Services Minor Home Repair $98,500.00 $98,500.00 SUBTOTAL $342,443.00 $890,888.00 Administration and Capacity Building 6 City of San Luis Obispo CDBG Administration $18,439.50 $18,439.50 7 City of San Luis Obispo Capacity Building $18,439.50 $18,439.50 SUBTOTAL $36,879.00 $36,879.00 TOTAL $458,347.00 $1,031,792.00 A copy of each 2026-27 CDBG application is provided in Attachment B. Funding Recommendations Staff is recommending a revision to the HRC funding recommendation to accommodate an important new funding opportunity for the Monterey Family Apartments. After the HRC convened on November 5, 2025, to approve the funding recommendations, including a $173,943 award to SLONP for the Monterey Family Apartments, SLONP was notified on November 21, 2025, that they had received a tax credit funding allocation from the state. This substantial funding award, which will support the completion of this important project, requires SLONP to close all project financing in March. This Page 24 of 444 Item 5c accelerated closing timeline means that SLONP will not be able to use the $173,943 in the 2026-27 CDBG program year initially approved by the HRC, as it will not be available in time for the project’s closing. There was not sufficient time for the HRC to re-evaluate, and for Council to approve, new funding recommendations based on this news to forward to the County by their final Action Plan approval deadline in February. Based on this very recent news, SLONP, City staff, and County staff worked together to develop an alternative funding solution to allow the Monterey Family Apartments project to move forward. The County is planning to award SLONP $173,943 in CDBG funds from prior program years in exchange for the City authorizing the County to allocate $173,943 in 2026-27 CDBG Housing and Public Facilities funding toward the 5 Cities Homeless Coalition Recuperative Care Facility project in Arroyo Grande, which was initially allocated the prior year funding that is now being awarded to Monterey Family Apartments. Therefore, the City’s funding allocation towards the Monterey Family project is proposed to be revised from $173,943 to $0. It is recommended that the City still award the full $70,000 and $98,500 in Housing and Public Facilities funding towards Adriance Court Roofing and CAPSLO Minor Home Repair, respectively. Staff recommends that Council authorize the County to allocate a portion of the City’s 2026-27 Housing and Public Facilities funds towards the 5 Cities Homeless Coalition Recuperative Care Facility project in exchange for the Monterey Family Apartments project being awarded prior-year funds by the County to allow SLONP to close financing in March to meet the tax-credit deadline. The revised funding allocation based on staff’s recommendation is below and can be found in Attachment C. Table 2. Staff-Recommended Funding Allocation City 2026-27 CDBG Funding Recommended Funding Requested No. Applicant Activity Public Services 1 Community Action Partnership of San Luis Obispo (CAPSLO) CAPSLO Prado Homeless Services Center (Prado HSC) 2026-27 $67,172.00 $79,025.00 2 Peoples' Self- Help Housing Supportive Housing Services $11,853.00 $25,000.00 SUBTOTAL $79,025.00 $104,025.00 Housing and Public Facilities Page 25 of 444 Item 5c 3 San Luis Obispo Nonprofit Housing Corporation (SLONP) Monterey Family Apartments $0.00* $722,388.00 4 Access Support Network Adriance Court Roofing $70,000.00 $70,000.00 5 CAPSLO Energy Services Minor Home Repair $98,500.00 $98,500.00 SUBTOTAL $168,500.00 $890,888.00 Administration and Capacity Building 6 City of San Luis Obispo CDBG Administration $18,439.50 $18,439.50 7 City of San Luis Obispo Capacity Building $18,439.50 $18,439.50 SUBTOTAL $36,879.00 $36,879.00 TOTAL $284,404.00 $1,031,792.00 *Revised to exchange 2026-27 CDBG funds for funding from prior program years. The 2026-27 exchanged funds in the amount of $173,943 intended for Monterey Family Apartments will be allocated by the County towards the 5 Cities Homeless Coalition Recuperative Care Facility project. The Monterey Family Apartments project will receive prior-year CDBG funds from the County allowing SLONP to close financing in March to meet the tax-credit deadline. Public Engagement A public hearing was held by the Human Relations Commission (HRC) on November 5, 2025, to provide an opportunity for the public to comment on the funding recommendations for the 2026-27 CDBG funding cycle. ENVIRONMENTAL REVIEW The proposed CDBG funding allocations are not considered a “project” under Section 15378 of the CEQA Guidelines. FISCAL IMPACT Budgeted: Yes Budget Year: 2026-27 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Federal $458,347 $248,404 Fees Total $458,347 $248,404 $ $ Page 26 of 444 Item 5c The City will receive its share of the award for administration and capacity building. All other funds will be passed from the County directly to the grantees. As described above, the City is not using the full allocation of $458,347 in order to benefit the Monterey Family Apartments. ALTERNATIVES Council may modify the recommended funding amounts. ATTACHMENTS A – Draft Resolution adopting the 2026-27 CDBG Funding Allocations B – 2026-27 CDBG Applications C – Draft 2026-27 CDBG Funding Allocations Page 27 of 444 Page 28 of 444 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2026-27 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDING RECOMMENDATIONS WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach, and the County of San Luis Obispo; and WHEREAS, said cities and County cooperatively administer several federal grant programs under the provisions of the 2024-26 Cooperative Agreement between the City and County dated September 5, 2023, and under applicable U.S. Department of Housing and Urban Development Department (HUD) rules; and WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and HUD rules, the Human Relations Commission held a public hearing on November 5, 2025, to review applications for Community Development Block Grant (CDBG) funding, consider public comments on community needs and the use of such funds, and recommend funding awards to Council; and WHEREAS, the Council has considered applications for CDBG funds, public testimony, the Urban County’s proposed One-Year Action Plan, and the HRC and staff recommendations included in the agenda report. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination. The project to award CDBG funds is exempt from environmental review as it does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. SECTION 2. 2026-27 Community Development Block Grant Program Amendments. The City’s 2026-27 Community Development Block Grant (CDBG) Program allocations are hereby approved per staff’s funding recommendations shown in Exhibit A. The Council authorizes the County to allocate a portion of the City’s 2026-27 CDBG Housing and Public Facilities allocation, in the amount of $173,943.00, to the 5 Cities Homeless Coalition Recuperative Care Facility project, in exchange for the County awarding the Monterey Family Apartments project prior -year CDBG funds. The Community Development Director is authorized to adjust final award amounts based on actual HUD allocations. SECTION 3. Board of Supervisors Consideration. The Council hereby forwards the above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the Board’s final action on the Urban County’s 2026 Consolidated Plan. Page 29 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ SECTION 4. Community Development Director Authority. The Community Development Director is authorized to act on behalf of the City in executing grant agreements and other actions necessary to implement the approved Consolidated Plan and CDBG Program, including revisions to funding amounts for the 202 6-27 CDBG Program if the City’s actual CDBG allocation is different than expected. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 26. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 30 of 444 Resolution No. _____ (2026 Series) Page 3 R ______ Exhibit A Staff-Recommended Funding Allocation City 2026-27 CDBG Funding Recommended Funding Requested No. Applicant Activity Public Services 1 Community Action Partnership of San Luis Obispo (CAPSLO) CAPSLO Prado Homeless Services Center (Prado HSC) 2026-27 $67,172.00 $79,025.00 2 Peoples' Self- Help Housing Supportive Housing Services $11,853.00 $25,000.00 SUBTOTAL $79,025.00 $104,025.00 Housing and Public Facilities 3 San Luis Obispo Nonprofit Housing Corporation (SLONP) Monterey Family Apartments $0.00* $722,388.00 4 Access Support Network Adriance Court Roofing $70,000.00 $70,000.00 5 CAPSLO Energy Services Minor Home Repair $98,500.00 $98,500.00 SUBTOTAL $168,500.00 $890,888.00 Administration and Capacity Building 6 City of San Luis Obispo CDBG Administration $18,439.50 $18,439.50 7 City of San Luis Obispo Capacity Building $18,439.50 $18,439.50 SUBTOTAL $36,879.00 $36,879.00 TOTAL $284,404.00 $1,031,792.00 *Revised to exchange 2026-27 CDBG funds for funding from prior program years. The 2026-27 exchanged funds in the amount of $173,943 intended for Monterey Family Apartments will be allocated by the County towards the 5 Cities Homeless Coalition Recuperative Care Facility project. The Monterey Family Apartments project will receive prior-year CDBG funds from the County allowing SLONP to close financing in March to meet the tax-credit financing deadline. Page 31 of 444 Page 32 of 444 Printed By: Donna Hawkins on 10/13/2025 1 of 18 Overview Completed by planning@capslo.org on 10/10/2025 10:15 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813Overview County of San Luis Obispo Public Service Grants Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 33 of 444 Printed By: Donna Hawkins on 10/13/2025 2 of 18 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG), Emergency Solutions Grant Program (ESG), and County General Fund Support (GFS) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County's Department of Social Services - Homeless Services Division website at slocounty.gov/HomelessServicesGrants. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025. If you have any questions about the application process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** For each Public Service funding source, an overview is available in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA). These overviews include program descriptions, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting requirements: Section I.C for Community Development Block Grant (CDBG) Overview Section I.D for Emergency Solutions Grant Program (ESG) Overview Section I.G for General Fund Support (GFS) Overview **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Page 34 of 444 Printed By: Donna Hawkins on 10/13/2025 3 of 18 A. Applicant Information Completed by planning@capslo.org on 10/10/2025 10:15 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) A.2. Type of Organization Non-Profit A.2.a. Define Other: A.3. Please upload the following documentation:  Proof of Active SAM.gov Registration *Required SAM-CAPSLO Registration 25-26 screenshot.jpg A.3.a UEI Number: For more information, visit SAM.GOV GBL8FWWWCLC5 A.4. Address 1030 Southwood Drive San Luis Obispo , CA 93401--5813 A.5. Is the organization faith based? No A.6. Date of Incorporation 12/09/1965 A.7. Please upload the following documentation:  Incorporation Documents *Required Articles of Incorporation.pdf  Organization Mission Statement *Required CAPSLO Mission Statement.pdf Page 35 of 444 Printed By: Donna Hawkins on 10/13/2025 4 of 18  General Liability Insurance *Required 25-26 Cert of Liability Insurance.pdf A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “CDBG Example Exhibit D-General Conditions”? Yes A.9 Annual Operating Budget $111,548,450.00 A.10 Number of Paid Staff 984 A.11 Number of Volunteers 1,334 CONTACT INFORMATION A.12 Contact Person Name Elizabeth "Biz" Steinberg A.12a. Contact Person Title Chief Executive Officer A.12b. Phone Number (805) 544-4355 A.12c. Email esteinberg@capslo.org Page 36 of 444 Printed By: Donna Hawkins on 10/13/2025 5 of 18 B. Applicant Capacity Completed by planning@capslo.org on 10/10/2025 10:15 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813B. Applicant Capacity Please provide the following information. B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources. Since its inception in 1965, CAPSLO has received and successfully managed a variety of grants that address the unmet needs of low-income individuals and families: County - Includes but is not limited to over 20 years of funding from CBO/PHG, DSS, and CDBG funding (since 2002), as well as funding from ESG (since 2004), General Fund Support (since 2012), and more recently, Continuum of Care, CESH, and PLHA grants. State - Includes but is not limited to Office of Emergency Services, Office of Child Abuse Prevention, and Community Services Block Grant funding, which designates CAPSLO as a Community Action Agency. Federal - The majority of CAPSLO's funding comes from the Office of Head Start, which the agency has been receiving since 1965. For over 20 years we've also received funding from the Area Agency on Aging and Low-Income Home Energy Assistance Program (LIHEAP). In 2017, CAPSLO was awarded a Federal Substance Abuse and Mental Health Services Administration (SAMHSA) grant for providing services to dual-diagnosed, chronically homeless individuals in its SLO-Hub program, which was awarded another five-year term in 2024. B.2. Describe how the organization participates in HMIS, Coordinated Entry, and the San Luis Obispo County Continuum of Care. CAPSLO is the management entity for the San Luis Obispo (SLO) County Continuum of Care (CoC) Coordinated Entry System (CES), and has served as the management entity since 2016. In FY24, the CES finalized its system transition from CAPSLO’s Client Track database to the CoC’s HMIS, Clarity, enabling more effective data sharing and improved program alignment. CAPSLO participated in the implementation of a centralized Housing Referral system, previously managed separately by housing providers. Housing inventory is now fully integrated into CES, which also integrated the Veterans by Name list into the Community Queue to better coordinate placements with veteran-serving providers. Additionally, CAPSLO is leading the CES implementation of an Emergency Shelter Queue for Individuals and an Emergency Shelter Queue for Families, which launched in FY25 to enhance access to shelter placements through a consistent and fair process, and the initiation of the new CES Data Management Plan. Coordinated Entry has been partnering with CAPSLO shelter staff to configure an “inventory model” that represents each bed in CAPSLO’s Housing Focused Shelter Program (HFSP) and night-by-night shelter programs in Clarity, allowing those units to receive referrals. This past year, CAPSLO employed two additional staff to better fulfill the CES's needs, in addition to the CES Program Manager. These new roles increased the CES’s capacity to coordinate assessments, manage referrals, and support cross-agency collaboration. CAPSLO worked closely with the SLO CoC to establish the first officially designated CES Oversight Committee, which will include CAPSLO and representatives from other agencies, housing developers, the local public housing authority, and individuals with lived experience, strengthening system accountability and transparency. B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project. CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued Page 37 of 444 Printed By: Donna Hawkins on 10/13/2025 6 of 18 liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board, as well as the full Board of Directors and senior management. Additionally, CAPSLO Homeless Services staff participate in County of San Luis Obispo CDBG and other HUD program reviews and desk audits as required. B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required Audit 2024.pdf B.4. Describe the organization’s experience delivering related programs/projects. For decades, CAPSLO has operated the largest homeless services team and sheltering programs in the county. Currently, 40 Prado Homeless Services Center (HSC) is the only shelter in the county offering nightly emergency shelter beds, which is crucial because the average waiting time for a shelter bed in 90-day programs is between 60 to 90 days. Our program serves those who might be ideal 90-day shelter clients, but there is no available bed for them between the time they identify the need and can be enrolled. We also don't have an upper threshold for duration in our Housing Focused Shelter Program (90-day), unlike other programs in our county. We will continue to provide shelter to individuals and families for as long as they remain engaged with our case management services beyond the initial 90 days. 40 Prado HSC is a low-barrier shelter, and we will take individuals that other shelters in the county will not serve. CAPSLO has taken the lead in pioneering many collaborative and innovative projects to address unmet needs for the homeless, working with other homeless-serving agencies. CAPSLO initiated the Recuperative Care Program, providing respite care and medical case management for medically fragile homeless individuals released from local hospitals, while the Warming/Cooling Center operations as well as the Rotating Safe Parking have expanded as their own grant-funded programs. The SLO-Hub program for dually diagnosed homeless individuals is in its second, five-year SAMHSA grant award. As the number of unsheltered individuals has increased in the county, so has CAPSLO’s outreach team increased in size and scope. B.5. How will you document and maintain income status or presumed benefit status of each beneficiary? CAPSLO’s Homeless Services Division uses two databases, the county’s HMIS (Clarity), which is now CAPSLO’s Homeless Services Division’s primary database, and CAPSLO’s agency-wide database, Client Track, to track CAPSLO clients across all its programs, and also for SLO-HUB and Recuperative Care additional client data. CAPSLO documents and maintains the income and benefit status of each client with the CES intake form, which is then stored digitally in the Client Track database. Income verification for CDBG/ESG beneficiaries is provided in accordance with 24 CFR Part 5. CAPSLO’s Client Track is an advanced case management system that is used to collect and manage client data associated with assessments on and referrals for individual clients. CAPSLO uses the program for client file management, case management coordination, and service reporting. Both systems keep and store client files such as demographic data, family information, attendance, services accessed, individual daily client activities and incidents, services provided, meals, and referrals. All client information is stored in Client Track’s secure cloud-based system to ensure confidentiality. B.6. Briefly describe your agency’s record keeping system with relevance to the proposed project. As described above, CAPSLO participates in the county’s HMIS as required, and also utilizes its own database, Client Track, to collect client data that does not require HMIS entry, such as the CenCal-funded Recuperative Care Program, and SLO-Hub. Both systems keep and store client files such as demographic data, family information, attendance, services accessed, individual daily client activities and incidents, services provided, meals, and referrals. B.7. Identify all budgeted funds for project related costs. Include leveraged funding to exhibit financial sustainability Page 38 of 444 Printed By: Donna Hawkins on 10/13/2025 7 of 18 of the project beyond the grant term if awarded. Approximately 54% of CAPSLO Homeless Services' Division $2.3 million 2024-25 budget was received from various local government grants; the remainder was private donations, Friends of 40 Prado fundraising, and corporate giving. A $5 million grant from the Day One Foundation was received in 2022 but is restricted for housing families, who comprise a small percentage of all shelter clients, leaving a gap for shelter operations. CAPSLO struggles with sustaining the growing operations of the Prado Homeless Services Center. With an increase in homelessness, donor fatigue and donor competition among homeless-serving agencies, sustaining funding for homeless services operations is a significant challenge. B.8. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown on "CDBG Example D-General Conditions" and "CDBG Example Exhibit E-Special Conditions"? Yes B.9. Does your organization comply with the Generally Accepted Accounting Principles (as outlined in 2 CFR § 200)? Yes Page 39 of 444 Printed By: Donna Hawkins on 10/13/2025 8 of 18 C. Proposed Project & Project Details Completed by planning@capslo.org on 10/10/2025 10:16 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813 C. Proposed Project & Project Details Please provide the following information. C.1. Name of Proposed Project 40 Prado Homeless Services Center C.2. Project/Program Address 40 Prado Road (Additional services at 1344 Nipomo Street, and 265 South Street, SLO) San Luis Obispo, CA 93401-- 5813 C.3. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Grover Beach - Not eligible for CDBG or ESG  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo  Unincorporated Community Name of Unincorporated Community:  Countywide C.4. Provide a brief narrative of the proposed project, including projected outcomes: The 40 Prado Homeless Services Center (Prado HSC) in SLO offers an Access Center and emergency shelter services, meals, showers, health screenings at the CHC on-site clinic, behavioral health services from the county’s mobile van, services to dual-diagnosed individuals, recuperative care for those recently released from the hospital, a Warming/Cooling Center during inclement weather, a Safe Parking program, animal kennels, a community garden, laundry, internet access, and a mail and message center to facilitate job and housing searches. Case managers and staff assist clients in creating individualized housing plans with set goals and objectives to obtain housing and self- sufficiency. CAPSLO operates the largest shelter program in SLO County, frequently providing shelter for 130-150 households per night through hoteling, shelter beds at Prado HSC, the Overflow, Safe Parking and Warming/Cooling Page 40 of 444 Printed By: Donna Hawkins on 10/13/2025 9 of 18 Center Programs. With its new Housing Focused Shelter Program (90-day program), CAPSLO was able to house 221 participants in the 24-25 fiscal year. We project that 250 will be housed, and 1,200 sheltered in 2026-2027. C.5. For proposed projects serving individuals at risk of or experiencing homelessness, upload your organization's HUD Annual Performance Report (APR) or CE APR generated from HMIS for the previous 12-month period. The report should be run for a single project type and correspond to the project type (Emergency Shelter, Street Outreach, etc.) for which you are applying. This information will be used by the grant review committee to assess past performance, outcomes, and alignment with funding priorities. Please be sure to not include any Client PII, including Clarity ID, along with the reports. Many review committee members will not be HMIS users. If your organization does not currently have a project in HMIS, please provide a comparable performance report that includes outcome data and performance metrics relevant to your proposed project type. For guidance on how to run reports in HMIS, please visit the HMIS Knowledge Base.  HUD Annual Performance Report (APR) CAPSLO APR Access Center 09.01.2024 to 09.01.2025.pdf CAPSLO APR Entry Exit Shelter Programs 09.01.2024 to 09.01.2025.pdf CAPSLO APR Night by Night Shelter Programs 09.01.2024 to 09.01.2025.pdf C.6. What is the level of need for this activity within SLO County? Please include data to support your answer. San Luis Obispo County consistently ranks among one of the most expensive areas to live in the nation, with the current median home cost at $1,000,000, while the median household income is $98,312 annually. United Way’s 2025 Real Cost Measure shows a combined income of $107,098 is necessary for a family comprised of two adults and two children to meet basic needs, and two adults would need to work three minimum wage jobs to earn $93,000 per year. In SLO County, 31% of households live below the Real Cost Measure. The rental vacancy rate has fluctuated between 2-5% over the last ten years, making affordable rentals scarce, and causing even more families to be extremely cost- burdened, or doubling/tripling up to pay rent. CAPSLO’s Prado Homeless Services Center (Prado HSC) routinely assists over 1,600 unhoused individuals per year. The 2024 San Luis Obispo County biennial Point-in-Time homeless enumeration report, The San Luis Obispo Community Report, showed 1,175 homeless individuals in San Luis Obispo County in January 2024. Of those, 800 were unsheltered, living on the streets, in encampments, or in vehicles. Of those who were unsheltered, 28.8% reported behavioral health illnesses, and 34.3% reported Substance Use Disorder. When asked about their obstacles to housing, 25.8% reported physical impairments, 8.8% reported medical issues, and 33.6% reported psychiatric impairment. The county's overnight shelters are filled to capacity every night, and families with children are given priority to beds. Those living at and below the poverty level are the most affected, as the cost of Fair Market Value housing far exceeds their income. C.7. Please upload a timeline for key steps of project implementation.  Timeline *Required CAPSLO Milestone Timeline 26-27.pdf C.8. Is this effort new, continuing, or expanding? Please describe. This effort is all three: continuing, expanding, and new. CAPSLO will be continuing its Housing-Focused Shelter Page 41 of 444 Printed By: Donna Hawkins on 10/13/2025 10 of 18 Program (HFSP) and a 90-Day bed program, which was launched last year. This housing-first model is focused on connecting clients to housing through rapid engagement with Housing Navigation and problem-solving services. These supplemental services are provided to all participants in the shelter program. Those participating in the HFSP are focused on securing housing, working with their assigned Housing Navigators and Homeless Services Workers to address any obstacles they encounter in their stay at Prado HSC, finding steady employment and/or income, and obtaining all necessary documents for housing. Having a secure place to sleep each night allows clients to better focus on working with their Case Manager and Housing Navigator, who assists clients in developing a housing plan. If appropriate, 30-day extensions are approved for clients who are unable to meet with a Housing Navigator or for those who need more time to secure housing, but have been following through with program requirements. This new system consists of 89 individual and 28 family beds, with 10 of the beds serving as night-by-night shelter beds that can either be filled by the community (for example, CAT teams, Mobile Crisis Units, and hospitals), and 12 Recuperative Care program beds (serving individuals who have recently been discharged from hospitals and would otherwise recover on the street). Participants who are only receiving Access Center services (formerly Day Center) are now able to stay at Prado HSC until 4 pm and are provided with a community dinner. CAPSLO expanded its Street Outreach program by securing a downtown office rented from St Stephen's Episcopal Church, from which additional outreach staff can be rapidly deployed. As 40 Prado HSC accommodates more and more clients, CAPSLO has added more staff, but lacks additional office space at 40 Prado HSC. Other outreach staff are now using CAPSLO offices on South Street as a base. With full funding, Prado HSC could expand its overflow program, adding an additional 10 beds for the community on any given night. This is critical, as Prado HSC will be the only provider in the entire county offering night-by-night emergency shelter beds, providing a life-saving service for the unhoused community. Often, individuals and families have to wait between 60 and 90 days for a shelter bed in the Prado HSFP or the 90-day programs of ECHO or 5CHC. Night-by-night shelter beds give individuals and families access to shelter while they are awaiting enrollment in a longer-term emergency shelter program. With an increased capacity of 40 beds, 40 Prado HSC is operating an expanded Warming Center program, which now operates year-round and is dependent only on the weather, not the time of year. New this year is the Overnight Parking program throughout six rotating sites in the City of San Luis Obispo. CAPSLO will also begin offering a Warming Center in Morro Bay once a location is secured, and in the meantime, outreach workers are connecting Morro Bay homeless residents to services at 40 Prado HSC. Another new service is the County’s behavioral health mobile clinic, which will visit 40 Prado HSC twice weekly. C.9. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027). LOE1: Create affordable and appropriately designed housing opportunities and shelter options for underserved populations – With the increasing number of unhoused individuals in SLO County, the Prado Homeless Services Center (HSC) is now at capacity every night. Families are given shelter priority or individuals, but families are approximately only 20% of shelter participants. Prado HSC continues to be the largest shelter program in SLO CoC, providing emergency shelter for 1,214 non-duplicated individuals in SLO County in FY 24-25, and is currently the only shelter in the county offering nightly emergency beds. LOE 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts - At CAPSLO, case managers and housing staff assist clients in creating individualized plans with set goals and objectives to obtain housing and self-sufficiency. They screen clients to establish which individuals have the greatest need. For eviction prevention assistance, clients must provide proof of emergency need, participate in the Case Management program and show that they can afford the monthly rent once housed. Case managers continue to work with their housed clients for six months after placement, further supporting their success. LOE 3: Improve and expand data management efforts through HMIS and coordinated entry system to strengthen data-driven operational guidance and strategic oversight. CAPSLO was involved with the County in replacing the HMIS data system. The CES implemented a new Community Queue, so that any CoC participating agency can place an individual on the list for the next available housing opportunity. LOE4: Create, identify, and streamline Page 42 of 444 Printed By: Donna Hawkins on 10/13/2025 11 of 18 funding and resources - CAPSLO is utilizing CenCal Health funding through CalAIM for Enhanced Case Management and Recuperative Care. In addition, CAPSLO received private funding for homeless families with children. LOE5: Strengthen Regional Collaboration – CAPSLO’s long-standing tradition of partnering with organizations to enhance and not duplicate services aligns with LOE5. CAPSLO routinely works with other organizations including those within the SLO Supportive Housing Consortium, and actively coordinates with the partner organizations that provide permanent housing. CAPSLO staff identify the best options for the most complicated and challenging situations presented and most often this includes extensive partnerships with other organizations. In its strategic planning process, CAPSLO is intentionally aligning with the San Luis Obispo Countywide Plan to Address Homelessness, 2022-2027. LOE6: Build public engagement through information-sharing and partnership - Monthly Town Hall sessions are being held at Prado HSC, allowing clients to ask questions, air concerns, and provide input. Whenever possible, CAPSLO incorporates peer leadership, especially in outreach activities. C.10. Select all population(s) expected to be served through this project:  Adults with children  Adults without children  Elderly/Senior  Parenting Youth  Persons Experiencing Chronic Homelessness  Persons At Risk of Homelessness  Veterans  Domestic Violence Survivors  Persons with Disabilities  Unaccompanied Youth (under 25 years of age)  Individuals with Co-occurring Disorders (Substance Use and Mental Health)  Low – Moderate Income Persons or Households C.11. How does your program/service complement and collaborate with existing efforts in the County? Describe how the program/project will increase capacity of services/housing for persons experiencing homelessness and at- risk persons in the County. CAPSLO has a long-standing tradition of partnering with organizations to enhance, not duplicate, services. With the commitment to providing participants with easier access to care, CAPSLO has worked diligently to collaborate with service providers to bring necessary services on-site. As previously noted, CAPSLO is the Lead Agency in Coordinated Entry and frequently contracts with ECHO and 5CHC. CAPSLO's commitment to and role within CES has allowed it to align programming changes with the strategic goals of the SLO CoC. Specifically, CAPSLO created a universal intake process in HMIS for CES and has increased its CES enrollments by over 100% in the first half of the CES grant year. More specifically to this proposed program, CAPSLO operates the largest shelter program in SLO County, frequently providing shelter for 130-150 households nightly through hoteling, shelter beds at Prado HSC, and the Overflow and Warming Center Programs. Without proper funding, this critical resource will not be able to continue to operate at capacity and will increase the number of households experiencing unsheltered homelessness in SLO CoC. Page 43 of 444 Printed By: Donna Hawkins on 10/13/2025 12 of 18 C.12. Describe any consultation with local jurisdictions to gain support for the project. CAPSLO Homeless Services Division works with the cities of Morro Bay and San Luis Obispo to support their efforts in addressing homelessness. The City of San Luis Obispo, in addition to its CDBG allocation, also supports homeless services operations through its General Fund Support for Safe Parking, Warming Center, hotel vouchers, and outreach for the Bob Jones Bike Trail, as well as homeless prevention through the Human Relation Commission's Grants-in-Aid. As previously stated, CAPSLO is currently working closely with City of Morro Bay staff to secure a location for a Warming Center. C.12a. Please attach any letters of support or commitment from local governments or community partners.  Letters of Support *Required CAPSLO - City of SLO Letter of Support 2025.pdf C.13. Name partner agencies as applicable and describe how they will be participating in the delivery of the proposed activity. C.14. Indicate the predicted, unduplicated performance outcome listed below: Population Number of Individuals Served Number of Households Served Number of unsheltered persons to become sheltered 530 472 Number of people experiencing homelessness to be entering permanent housing 225 191 Number of people experiencing Chronic Homelessness served 598 591 Number of persons At-Risk of Homelessness served 144 134 Number of Unaccompanied Youth served 0 0 Number of Youth At-Risk of Homelessness served 91 91 Number of persons in families with children served 167 58 Total 1,755 1,537 Page 44 of 444 Printed By: Donna Hawkins on 10/13/2025 13 of 18 D. Funding & Eligible Activities Completed by planning@capslo.org on 10/10/2025 10:16 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813D. Funding & Eligible Activities Please provide the following information. D.1. Total Funding Requested $429,261.00 D.1a. Please upload a Budget & Budget Narrative for the project for which you are applying. The budget narrative should include FTEs to be provided. Please include the value of any matching funding. Project budget must include committed and anticipated funding for total project cost--not just for funding requested in this application.  Budget and Budget Narrative *Required CAPSLO CDBG-ESG-GFS 26-27 Budget & Narrative.pdf D.2. Are you requesting CDBG funds? Yes D.2a. Amount of CDBG funds requested: $117,981.00 D.2.b. Please indicate the amount you are requesting for each jurisdiction: Jurisdiction Amount Arroyo Grande $0.00 Atascadero $0.00 Morro Bay $9,639.00 Paso Robles $0.00 Pismo Beach $0.00 San Luis Obispo $79,025.00 County $29,317.00 TOTAL $117,981.00 D.2c. Estimated number of unduplicated persons to benefit from CDBG funds: 1,755 D.2d. Estimated number of unduplicated households to benefit from CDBG funds: 1,615 D.2.e. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives. Page 45 of 444 Printed By: Donna Hawkins on 10/13/2025 14 of 18 Low Moderate Income LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective. Low/Moderate Income Clientele D.2.f. Identify all eligible activities that apply to the proposed project:  Public Services -General  Operating Costs of Homeless/AIDS Patients Programs  Senior Services  Handicapped Services  Legal Services  Youth Services  Transportation Services  Substance Abuse Services  Services for Battered and Abused Spouses  Crime Awareness or Neighborhood Cleanups  Fair Housing Activities  Tenant/Landlord/Housing Counseling  Child Care Services  Health Services  Services for Abused and Neglected Children  Mental Health Services  Job Training and Job Placement Services  Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits  Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises) D.2g. Explain how the proposed project meets the selected National Objective: The proposed project meets the National Objective because 100% of the beneficiaries of the proposed activities will be Low/Moderate income persons. The specific group of persons the proposed project will serve are homeless persons. CAPSLO requests documentation of family/individual income for clients of the 40 Prado Homeless Services Center. This meets the CDBG primary National Objective, since more than 70% of funds received will be expended on activities that benefit Low/Moderate income clients. Page 46 of 444 Printed By: Donna Hawkins on 10/13/2025 15 of 18 D.2h. Will the services offered by your organization increase or expand as a result of CDBG assistance? Yes D.2i. Explain how your services will increase or expand as a result of CDBG assistance: CAPSLO expanded its Street Outreach program by securing a downtown office rented from St Stephen's Episcopal Church, from which additional outreach staff can be rapidly deployed. As 40 Prado HSC accommodates more and more clients, CAPSLO has added more staff, but lacks additional office space at 40 Prado HSC. Other outreach staff are now using CAPSLO offices on South Street as a base. With an increased capacity of 40 beds, 40 Prado HSC is operating an expanded Warming Center program, which now operates year-round and is dependent only on the weather, not the time of year. New this year is the Overnight Parking program throughout six rotating sites in the City of San Luis Obispo. CAPSLO will also begin offering a Warming Center in Morro Bay once a location is secured, and in the meantime, outreach workers are connecting Morro Bay homeless residents to services at 40 Prado HSC. Another new service is the County’s behavioral health mobile clinic, which will visit 40 Prado HSC twice weekly. D.2j. Describe how the project will directly benefit the populations identified. The 40 Prado Homeless Services Center directly benefits low-income and very low-income populations who are homeless by providing shelter, providing basic needs such as showers and meals, and engaging them in a partnership with community outreach programs to set them on a path to housing. CAPSLO's system of diversion and case management ensures that homeless individuals across the county are connected to social security benefits, physical and behavioral health care, community resources, available employment training and workforce development programs, and other supportive services that promote long-term health and housing stability. D.3. Are you requesting ESG funds? Yes D.3a. Amount of ESG funds requested: $135,680.00 D.3b. Please upload your ESG Policies and Procedures for each activity for which you are applying.  ESG Policies and Procedures *Required CAPSLO HCD Approved Policies & Procedures.pdf D.3.c. Identify all eligible activities and their amounts that apply to the proposed project: Eligible Activities Amount Approximate Persons Served Emergency Shelter $135,680.00 1,755 Street Outreach $0.00 0 Rapid Re-Housing $0.00 0 Homelessness Prevention $0.00 0 HMIS $0.00 0 TOTAL $135,680.00 1,755 D.3.d. ESG Matching Funds (1:1 Match Required) Funding Source Amount Page 47 of 444 Printed By: Donna Hawkins on 10/13/2025 16 of 18 Private Donations $135,680.00 TOTAL $135,680.00 D.4. Are you requesting General Fund Support funds? Yes D.4a. Amount of GFS funds requested: $175,600.00 D.4b. Identify all eligible activities that apply to the proposed project: Amount Approximate Persons Served Emergency Shelters $175,600.00 1,755 Safe Parking $0.00 0 Essential Services for Persons Experiencing Homelessness $0.00 0 Warming Centers $0.00 0 Street Outreach $0.00 0 Tenant Based Rental Assistance-TBRA $0.00 0 TOTAL $175,600.00 1,755 Page 48 of 444 Printed By: Donna Hawkins on 10/13/2025 17 of 18 E. Supplemental Documents Completed by planning@capslo.org on 10/10/2025 10:16 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813E. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Documentation **No files uploaded Page 49 of 444 Printed By: Donna Hawkins on 10/13/2025 18 of 18 Submit Completed by planning@capslo.org on 10/10/2025 10:17 AM Case Id: 30571 Name: 40 Prado Homeless Services Center, CAPSLO - 2026Address: 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San Luis Obispo, CA 93401--5813Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds. Authorized Representative Signature Elizabeth "Biz" Steinberg Electronically signed by planning@capslo.org on 10/10/2025 10:17 AM Authorized Representative Title Chief Executive Officer Page 50 of 444 Printed By: Donna Hawkins on 10/13/2025 1 of 19 Overview Completed by grants@pshhc.org on 10/7/2025 7:26 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 Overview County of San Luis Obispo Public Service Grants Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 51 of 444 Printed By: Donna Hawkins on 10/13/2025 2 of 19 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG), Emergency Solutions Grant Program (ESG), and County General Fund Support (GFS) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County's Department of Social Services - Homeless Services Division website at slocounty.gov/HomelessServicesGrants. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025. If you have any questions about the application process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** For each Public Service funding source, an overview is available in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA). These overviews include program descriptions, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting requirements: Section I.C for Community Development Block Grant (CDBG) Overview Section I.D for Emergency Solutions Grant Program (ESG) Overview Section I.G for General Fund Support (GFS) Overview **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Page 52 of 444 Printed By: Donna Hawkins on 10/13/2025 3 of 19 A. Applicant Information Completed by grants@pshhc.org on 10/5/2025 8:54 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name People's Self-Help Housing A.2. Type of Organization Non-Profit A.2.a. Define Other: A.3. Please upload the following documentation:  Proof of Active SAM.gov Registration *Required PSHH Sam Reg.pdf A.3.a UEI Number: For more information, visit SAM.GOV NHC6G8NUGY17 A.4. Address 1060 Kendall Road San Luis Obispo, CA 93401 A.5. Is the organization faith based? No A.6. Date of Incorporation 07/01/1970 A.7. Please upload the following documentation:  Incorporation Documents *Required PSHHC Articles of Incorporation.pdf  Organization Mission Statement *Required PSHH Mission Statement.pdf Page 53 of 444 Printed By: Donna Hawkins on 10/13/2025 4 of 19  General Liability Insurance *Required PSHH COI Umbrella 2025-26.pdf A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “CDBG Example Exhibit D-General Conditions”? Yes A.9 Annual Operating Budget $20,881,241.00 A.10 Number of Paid Staff 230 A.11 Number of Volunteers 100 CONTACT INFORMATION A.12 Contact Person Name June Eastham A.12a. Contact Person Title Grants Manager A.12b. Phone Number (805) 548-2345 A.12c. Email grants@pshhc.org Page 54 of 444 Printed By: Donna Hawkins on 10/13/2025 5 of 19 B. Applicant Capacity Completed by grants@pshhc.org on 10/10/2025 12:01 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 B. Applicant Capacity Please provide the following information. B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources. People’s Self-Help Housing (PSHH) has substantial history of receiving and managing grants from County, State, and Federal sources – demonstrating financial capacity, feasibility, and sustainability over extended periods. PSHH receives over $750,000 per year, year over year, in federal funds, triggering a Single Audit in compliance with federal regulations. Major highlights are as follows: 1. Multiple Capital CDBG grants through the Central Coast for the construction of affordable housing properties over several decades. 2. Community Development Block Grant (CDBG) funding from Ventura County and City for over five years to Supportive Housing Program (SHP) services 3. County of San Luis Obispo Continuum of Care (CoC) funding for FY23-24 4. CDBG funding from San Luis Obispo CoC jurisdictions for SHP services over multiple years 5. An American Rescue Plan (ARPA) award of $200,000 for SHP services in SLO County 6. City of Santa Barbara funding for SHP services at our Victoria Hotel and Heath House properties 7. City of Santa Maria CDBG capital funding for an Education Department learning center rehabilitation 8. Regular regional, state, and federally- sponsored grants and forgivable loans to the Multifamily Housing development Department to bring new and continued affordable housing properties 9. $1,000,000+ in Paycheck Protection Program (PPP) funding 10. Recurring HUD Technical Assistance funding 11. Continuous renewal of the HUD Service Coordinators in Multifamily Housing funding, renewal dependent on compliant financials and programmatic outcomes within renewal guidelines. 12. California State Parks Outdoor Equity Education (CSP-OEE) funding for education program expansion over a five-year period. B.2. Describe how the organization participates in HMIS, Coordinated Entry, and the San Luis Obispo County Continuum of Care. For CoC-participating units, PSHH records unit availability, client intake, service provision, record-keeping, and ongoing updates through the Homeless Management Information System (HMIS), ensuring all Supportive Housing Program participants and housing units are registered and their progress is tracked in alignment with federal standards. PSHH utilizes the Coordinated Entry System for selection of new residents for its CoC-participating housing units, which ranks eligible individuals with the greatest needs based on standardized vulnerability assessments. All vacancies in PSHH’s dedicated homeless set-aside units are filled via CoC referrals, and the organization collaborates closely with the Coordinated Entry team to ensure countywide prioritization goals are met. PSHH is a key partner in the San Luis Obispo County Continuum of Care (CoC), regularly collaborating with other service providers and CoC members, government agencies, and stakeholders to implement a Housing First approach, provide comprehensive case management, share data, and participate in governance and planning activities. The organization helps match prioritized individuals to available housing resources and maintains compliance with CoC standards and policies. B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project. For CoC-participating units, PSHH records unit availability, client intake, service provision, record-keeping, and ongoing updates through the Homeless Management Information System (HMIS), ensuring all Supportive Housing Program participants and housing units are registered and their progress is tracked in alignment with federal standards. PSHH utilizes the Coordinated Entry System for selection of new residents for its CoC-participating housing units, which ranks Page 55 of 444 Printed By: Donna Hawkins on 10/13/2025 6 of 19 eligible individuals with the greatest needs based on standardized vulnerability assessments. All vacancies in PSHH’s dedicated homeless set-aside units are filled via CoC referrals, and the organization collaborates closely with the Coordinated Entry team to ensure countywide prioritization goals are met. PSHH is a key partner in the San Luis Obispo County Continuum of Care (CA-614), regularly collaborating with other service providers and CoC members, government agencies, and stakeholders to implement a Housing First approach, provide comprehensive case management, share data, and participate in governance and planning activities. The organization helps match prioritized individuals to available housing resources and maintains compliance with CoC standards and policies. B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required PSHH Audit FYE24 reduced.pdf B.4. Describe the organization’s experience delivering related programs/projects. PSHH has provided SHP services to residents free of charge for over 22 years. The program has been designed and continuously adapted in direct response to needs expressed and observed across service clients, particularly as housing instability challenges have evolved. These clinical case management services help retain residents, even when they face challenges such as lease violations and nonpayment of rent, keeping eviction rates near zero. SHP usage in San Luis Obispo County has leveled out at around 62% of PSHH's nearly 2,200 households annually, only a few points lower than the peak of the pandemic. These clinical case management services help retain residents, even when they face challenges such as lease violations and nonpayment of rent, keeping eviction rates near zero. SHP usage in San Luis Obispo County has leveled out at around 62% of PSHH’s 943 County households annually, only a few points lower than the peak of the pandemic. PSHH was a member of the original CoC cohort when the Continuum of Care was founded in San Luis Obispo County, rejoining only a few years ago. This reintegration includes incorporating new County units opening during the grant period and expanding HMIS participation across properties, with all vacancies in HMIS- participating units now filled through Coordinated Entry System referrals following Housing First principles. The organization continues to provide Supportive Services, Rental Assistance, and Permanent Housing as a key member of the CoC, employing effective strategies such as Housing First principles, Progressive Engagement, and income enhancement efforts for people experiencing homelessness. B.5. How will you document and maintain income status or presumed benefit status of each beneficiary? PSHH safely collects and verifies information on family size, income, disability, and senior status in accordance with federal HUD and USDA regulations as part of a household’s application process prior to move-in at a PSHH property. Once residing at a PSHH rental property, every household’s income and size is recertified annually including those receiving services through Supportive Housing Program (SHP), for which grant funding is sought. In most cases, household income may not exceed 60% of the Area Median Income (AMI) at move-in. Household size, income, disability, and senior status information is stored in PSHH’s tenant database, which is easily cross referenced with the client database maintained by the Supportive Housing Program. The SHP database is specifically configured to generate reports aligned with performance metrics and reporting requirements, ensuring we can provide accurate data on income increases and economic stability outcomes. Our documentation process includes obtaining signed releases of information at intake, collecting pay stubs or employer verification for earned income, securing award letters for Social Security, SSI/SSDI, and other benefits, and documenting SNAP, TANF, and other public assistance through benefit verification systems. For participants with no income, we complete standardized self-declaration forms and conduct follow-up verification as required by HUD and/or USDA guidelines. All documentation is date-stamped, reviewed by supervisory staff for completeness and accuracy, and maintained in secure filing systems with restricted access to ensure confidentiality. Page 56 of 444 Printed By: Donna Hawkins on 10/13/2025 7 of 19 B.6. Briefly describe your agency’s record keeping system with relevance to the proposed project. PSHH uses two parallel databases relevant to the program that document beneficiary information to maintain compliance. The first is the organization’s resident database which is maintained by the Property Management Department, which stores information on every PSHH household, including members, ages, race, ethnicity, income at move-in, and income level at the most recent recertification. The second is the HIPPA-compliant SHP program database, used for storage of case management records and maintained by our clinical social workers. This second database includes case files containing notes tagged for specific services rendered and is easily cross-referenced to the resident database. The tags such as crisis intervention, healthcare service referrals, food assistance, transportation, counseling, and legal services are relevant to various outcomes, outputs, and funder reports. Both system databases maintain documentation of presumed benefit status for households experiencing homelessness. All records are secured with restricted access, date-and-time stamped for audits, and retained for the standard set by federal and state regulations. The dual-system approach guarantees accurate data collection and reporting across all funding streams and maintains integrity of performance metrics across program requirements. B.7. Identify all budgeted funds for project related costs. Include leveraged funding to exhibit financial sustainability of the project beyond the grant term if awarded. Unincorporated San Luis Obispo budgeted funds: Avila Beach Community Foundation, $2,700 PSHH Property Service & Program Revenue, $264,720 City of San Luis Obispo budgeted funds: City of San Luis Obispo grants, $13,500 PSHH Property Service & Program Revenue, $181,594 B.8. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown on "CDBG Example D-General Conditions" and "CDBG Example Exhibit E-Special Conditions"? Yes B.9. Does your organization comply with the Generally Accepted Accounting Principles (as outlined in 2 CFR § 200)? Yes Page 57 of 444 Printed By: Donna Hawkins on 10/13/2025 8 of 19 C. Proposed Project & Project Details Completed by grants@pshhc.org on 10/7/2025 7:22 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 C. Proposed Project & Project Details Please provide the following information. C.1. Name of Proposed Project Supportive Housing Program for Community Members at Risk of Homelessness C.2. Project/Program Address 1060 Kendall Road San Luis Obispo , CA 93401 C.3. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Grover Beach - Not eligible for CDBG or ESG  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo  Unincorporated Community Name of Unincorporated Community: Oceano, Los Osos, Avila Beach, Cambria, Templeton  Countywide C.4. Provide a brief narrative of the proposed project, including projected outcomes: The Supportive Housing Program provides clinical case management through licensed and associate clinical social workers serving residents across 30 County affordable rental properties. Services are free, confidential, voluntary, and provided in English and Spanish with bilingual staff serving a predominantly Latinx population (80% of clients), with residents never placed on waiting lists for immediate access to support. Social workers deliver crisis intervention, financial assistance coordination, healthcare navigation, behavioral health support, and proactive outreach to residents facing eviction risk. Strategic partnerships with CenCal Health Enhanced Care Management, County Behavioral Health, and emergency assistance providers enable comprehensive coordinated care for individuals with complex needs. The program is expanding with a new property opening in the City of San Luis Obispo and, while not part of this CDBG project, one additional property in Grover Beach to serve growing demand countywide. The Page 58 of 444 Printed By: Donna Hawkins on 10/13/2025 9 of 19 program will serve approximately 1,400 persons and 500 households annually, maintaining near-zero eviction rates among extremely vulnerable populations (57% extremely low-income, 27% very low-income) through clinical intervention. C.5. For proposed projects serving individuals at risk of or experiencing homelessness, upload your organization's HUD Annual Performance Report (APR) or CE APR generated from HMIS for the previous 12-month period. The report should be run for a single project type and correspond to the project type (Emergency Shelter, Street Outreach, etc.) for which you are applying. This information will be used by the grant review committee to assess past performance, outcomes, and alignment with funding priorities. Please be sure to not include any Client PII, including Clarity ID, along with the reports. Many review committee members will not be HMIS users. If your organization does not currently have a project in HMIS, please provide a comparable performance report that includes outcome data and performance metrics relevant to your proposed project type. For guidance on how to run reports in HMIS, please visit the HMIS Knowledge Base.  HUD Annual Performance Report (APR) PSHH_HUD_HMIS_AnnualPerformanceReport_[FY2024].pdf C.6. What is the level of need for this activity within SLO County? Please include data to support your answer. San Luis Obispo County faces a critical gap between the need for stable, affordable housing and available resources, with housing insecurity threatening thousands of low-income households. PSHH residents mirror this vulnerability: 57% are extremely low-income, 27% are very low-income, and 12% are low-income, placing nearly all served households at elevated risk of homelessness without ongoing supportive services. In January 2024, the County's Point- in-Time Count identified 1,175 individuals experiencing homelessness on a single night, with nearly one-third (339) being seniors aged 55 and older. Current shelter capacity can accommodate only 20–30% of those in need on any given night, and the five-year Consolidated Plan projects the need for housing solutions for an additional 2,050 people by 2030 to meet County goals. The 2023 poverty rate in San Luis Obispo County was 12.8%, above the state average. Over half of renter households (56%) are rent-burdened, devoting more than 30% of income to housing costs. With median rents ranging from $2,400 to $2,644 per month in late 2025, and a two-adult household requiring an annual income of $76,161 to meet basic needs, extremely low-income and very low-income households face constant housing instability. According to the California Housing Partnership's 2023 Housing Needs Report, San Luis Obispo County requires an additional 13,000 affordable rental homes to meet the needs of its low-income residents. Only 9% of homes are affordable to a family earning median household income, and the County rank high on my lists of least affordable areas in the United States, with one of the largest factors being a lack of naturally occurring affordable housing. This shortage disproportionately affects very low-income and extremely low-income households, the exact populations served by PSHH. PSHH's resident population exemplifies the housing insecurity crisis, with 57% earning extremely low incomes (typically 30% or less of Area Median Income), 27% earning very low incomes (31–50% AMI), and 12% earning low incomes (51–80% AMI), these households are extraordinarily vulnerable to economic shocks, eviction, and homelessness. Many residents struggle with mental health challenges, substance use issues, or are transition-age youth—populations that benefit critically from the Supportive Housing Program's clinical case management and housing stabilization services. The Community Foundation's Housing & Homelessness reports document persistent barriers including limited affordable rental options, scarcity of non-congregate beds, and disproportionate impacts on Indigenous and Latinx communities, underscoring the need for culturally tailored supportive housing. The intersection of a sizable unsheltered population, limited system capacity, elevated poverty, acute housing cost burdens, and the extreme income vulnerability of PSHH's resident population demonstrates that Page 59 of 444 Printed By: Donna Hawkins on 10/13/2025 10 of 19 San Luis Obispo County's need for expanded Supportive Housing Program services is both high and urgent. Enhanced clinical case management, housing-focused supportive services, and targeted financial assistance are vital to prevent homelessness among the County's most vulnerable low-income households and close the gap between need and available resources. C.7. Please upload a timeline for key steps of project implementation.  Timeline *Required PSHH Timeline.pdf C.8. Is this effort new, continuing, or expanding? Please describe. This effort is expanding. PSHH has provided the Supportive Housing Program (SHP) continuously for over 22 years, establishing a track record of preventing homelessness and stabilizing vulnerable households across San Luis Obispo County. The program is now undergoing expansion to meet growing demand driven by new property developments and increased service utilization rates. The 53 unit Cleaver and Clarks Commons is opening in December 2026, where grant funds will be applied. The organization is expanding the total number of SHP staff, consisting of licensed and associate clinical social workers, to maintain appropriate client-to-staff caseload ratios as the portfolio grows. Comprehensive professional development is being provided to all new and existing Supportive Housing Program staff to ensure high-quality, evidence-based service delivery across the expanding service area. C.9. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027). The Supportive Housing Program (SHP) as whole serves all CDBG jurisdiction with the County of San Luis Obispo. The Supportive Housing Program aligns directly with Line of Effort 2 of the San Luis Obispo Countywide Plan to Address Homelessness by reducing barriers to housing stability through comprehensive supportive services, housing navigation, and prevention efforts. SHP provides housing-focused case management and services through the provision of clinical case management and onsite care that builds capacity, well-being, and personal resiliency for residents transitioning from housing instability. PSHH is actively increasing Supportive Housing Program staff to keep pace with new property developments and providing professional development for new and existing staff as the organization expands San Luis Obispo County's affordable housing stock, including new homeless set-aside units. This directly supports the Plan's strategy to increase staff capacity for coordinated entry, outreach, and housing case management while meeting best-practice client-to-staff ratios. PSHH is expanding our housing inventory and system integration. While CoC-participating units are not included in this proposal, PSHH is entering many new homeless set- aside units into Continuum of Care participation which will utilize HMIS and associated processes, which aligns with the Plan's emphasis on using the coordinated entry system as the foundation for service assessment. This includes units at Beacon Studios, opening with 78 units, most homeless set-asides, including 35 Transition Age Youth (TAY) units. PSHH provides housing in non-CoC-participating units to 146 households, comprised of 323 residents, who were homeless prior to move-in. The organization commits to placing at least 10% of each newly developed property to homeless set-aside units. Targeted Services for Subpopulations: SHP targets housing units and program services to diverse subpopulations experiencing homelessness, including veterans, Transition Age Youth, individuals living with disabilities, and those classified as chronically homeless. This approach directly addresses the Plan's strategy to target program services to subpopulations with specific needs while ensuring services are culturally appropriate and vary based on household makeup and support requirements.[1] Homelessness Prevention and Stabilization: SHP provides ongoing homelessness prevention services to all residents, as the program is designed to build housing security. The organization serves many residents who qualify as low-income and are at risk of homelessness, even if not immediately homeless prior to move-in. PSHH has increased temporary financial support funding by tens of thousands Page 60 of 444 Printed By: Donna Hawkins on 10/13/2025 11 of 19 of dollars per year over the last two years through private donations and community support organizations, helping residents with rent, unpaid utilities, and other household needs. This aligns with the Plan's diversion and prevention strategies to help households stabilize through temporary financial support. Behavioral Health Integration: SHP provides short-term behavioral health support and connects residents to longer-term behavioral health services. The program has partnered with CenCal Health to provide Enhanced Care Management (ECM), offering person-centered, comprehensive care coordination for individuals with highly complex health and social needs, including those experiencing homelessness or serious health conditions. This partnership directly supports the Plan's emphasis on expanding behavioral health services and creating active partnerships with healthcare providers to better support people with complex needs. Culturally Responsive Services: PSHH provides ongoing diversity, equity, and inclusion professional development for all Supportive Housing Program staff and prioritizes hiring bilingual/bicultural service providers. The program enhances security and ability to engage with and build community among formerly homeless residents. These efforts align with the Plan's strategies to implement culturally and linguistically responsive programs, improve access for people with limited English proficiency, and create opportunities for formerly homeless persons to participate in mutually supportive neighborhoods. C.10. Select all population(s) expected to be served through this project:  Adults with children  Adults without children  Elderly/Senior  Parenting Youth  Persons Experiencing Chronic Homelessness  Persons At Risk of Homelessness  Veterans  Domestic Violence Survivors  Persons with Disabilities  Unaccompanied Youth (under 25 years of age)  Individuals with Co-occurring Disorders (Substance Use and Mental Health)  Low – Moderate Income Persons or Households C.11. How does your program/service complement and collaborate with existing efforts in the County? Describe how the program/project will increase capacity of services/housing for persons experiencing homelessness and at- risk persons in the County. PSHH collaborates through the Supportive Housing Program with organizations throughout San Luis Obispo County, creating a comprehensive network of wraparound services that links residents to health, social services, and employment programs. SHP social workers act as advocates and connectors, helping stabilize households and build resiliency by facilitating access to services residents would otherwise struggle to navigate. Clinical case managers routinely coordinate appointments, assist with intake processes, and provide mediation, language support, and service navigation assistance. SHP complements DHHS services by helping residents anticipate and mitigate challenges before they occur, reducing staff time and program resources invested by County agencies. Partnerships and working Page 61 of 444 Printed By: Donna Hawkins on 10/13/2025 12 of 19 relationships enable SHP social workers to act as advocates and connectors, helping stabilize households and build resiliency by facilitating access to services that residents would otherwise struggle to navigate. The following selection of partnerships, formalized through Memoranda of Understanding (MOUs), demonstrates how integrated care coordination enhances housing stability and reduces barriers to mainstream benefits: SLO County Behavioral Health: PSHH coordinates with SLO County Behavioral Health to connect residents to voluntary wraparound supports— including case management, therapy, crisis response, and life skills—that help them stabilize and maintain housing. On-site Health Clinics: Free, on-site primary care removes transportation and cost barriers for uninsured residents, supporting early intervention, chronic condition management, and better health outcomes that promote housing stability. Emergency One-Time Assistance Partnerships (Starfish Connection, South SLO County Womenade, and Womenade SLO): When urgent expenses like utilities, transportation, or medical copays threaten housing stability, PSHH case managers quickly coordinate direct payments to providers, helping residents bridge short-term crises and maintain housing. CenCal Health Enhanced Care Management Partnership: Eligible residents with complex health needs receive coordinated care through a dedicated Lead Care Manager who organizes medical, behavioral, dental, and social services across multiple systems. This partnership streamlines access to comprehensive supports, addressing both clinical and social determinants of health in one integrated model. VA Supportive Housing (VASH) Partnership: PSHH coordinates closely with VA social workers to provide integrated case management for homeless veterans and veterans at imminent risk of homelessness. VASH-voucher holders receive priority placement, moving to the top of waiting lists for both dedicated VASH units and other available units across PSHH properties. This coordinated intake and shared case management model ensures rapid housing placement and wraparound support that promotes long-term housing stability for veterans. SHP annual usage remains elevated at approximately 62% of PSHH's 948 households, demonstrating sustained need for clinical case management.. The household count will rise to 1001 by the end of the grant period. SHP significantly increases the County's capacity to serve community members at risk of homelessness, including those previously homeless and those at risk due to low-income status. PSHH provides SHP services across 30 County affordable rental properties, where we serve approximately 1,100 persons and 500 households annually. About 85% of client households are very low-income or extremely low-income, placing them at elevated risk without ongoing supportive services. This homelessness prevention focus addresses a critical gap by stabilizing vulnerable households before they enter the homeless services system. The program is expanding staff capacity to accommodate the 79-unit Beacon Studios (opening December 2026) and 53-unit Cleaver and Clark Commons (opening March 2026), with comprehensive professional development for all staff. PSHH has increased temporary financial support funding by tens of thousands of dollars annually, providing assistance for rent, utilities, and household needs. Over the past five years, PSHH has housed 314 homeless community members. While this grant will not fund CoC-participating units, many formerly homeless residents live in non-CoC units and benefit from SHP clinical case management that prevents returns to homelessness. The program provides ongoing diversity, equity, and inclusion professional development and prioritizes hiring bilingual/bicultural service providers. Latinx households account for 80% of clients served, with services in English and Spanish and live telephone translation available in any language. By expanding service capacity for low-income households at risk, providing prevention services, serving formerly homeless residents in non-CoC units, and building culturally responsive delivery, SHP significantly increases the County's capacity to prevent and reduce homelessness among its most vulnerable populations. C.12. Describe any consultation with local jurisdictions to gain support for the project. PSHH’s commitment to providing Supportive Housing Program services is built into the affordable housing framework starting with property development. Support for the Supportive Housing Program is integrated into PSHH's property development process from the earliest planning stages, with supportive services functioning as a core component of the organization's commitment to building quality affordable housing. PSHH engages in consultation with local jurisdictions, the Continuum of Care, various County departments and boards, and organizational partners to ensure that each new affordable housing development includes dedicated resources for comprehensive case management and housing stabilization services. County CDBG capital funding has been provided to many PSHH properties during Page 62 of 444 Printed By: Donna Hawkins on 10/13/2025 13 of 19 construction, with the supportive services offered by SHP serving as a critical component of funding decisions. This demonstrates how local jurisdictions view the Supportive Housing Program as essential infrastructure that enhances the viability and long-term success of affordable housing developments. SHP is currently supported by City of Morro Bay CDBG funds and has been approved for portions of County of San Luis Obispo Continuum of Care funding. The project is also supported by the City of San Luis Obispo municipal grant funds, County CBO/PHG funding, and County ARPA funds. This multi-jurisdictional support reflects broad recognition among local government partners that the Supportive Housing Program is essential to the success of affordable housing development and the County's homelessness response strategy. C.12a. Please attach any letters of support or commitment from local governments or community partners.  Letters of Support *Required DRR_SLO County Services Letter 2024 signed.docx C.13. Name partner agencies as applicable and describe how they will be participating in the delivery of the proposed activity. C.14. Indicate the predicted, unduplicated performance outcome listed below: Population Number of Individuals Served Number of Households Served Number of unsheltered persons to become sheltered 0 0 Number of people experiencing homelessness to be entering permanent housing 8 8 Number of people experiencing Chronic Homelessness served 0 0 Number of persons At-Risk of Homelessness served 338 192 Number of Unaccompanied Youth served 0 0 Number of Youth At-Risk of Homelessness served 50 43 Number of persons in families with children served 70 0 Total 466 243 Page 63 of 444 Printed By: Donna Hawkins on 10/13/2025 14 of 19 D. Funding & Eligible Activities Completed by grants@pshhc.org on 10/7/2025 7:26 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 D. Funding & Eligible Activities Please provide the following information. D.1. Total Funding Requested $50,000.00 D.1a. Please upload a Budget & Budget Narrative for the project for which you are applying. The budget narrative should include FTEs to be provided. Please include the value of any matching funding. Project budget must include committed and anticipated funding for total project cost--not just for funding requested in this application.  Budget and Budget Narrative *Required Public Services - Proposed Budget Draft PSHH.xlsx D.2. Are you requesting CDBG funds? Yes D.2a. Amount of CDBG funds requested: $50,000.00 D.2.b. Please indicate the amount you are requesting for each jurisdiction: Jurisdiction Amount Arroyo Grande $0.00 Atascadero $0.00 Morro Bay $0.00 Paso Robles $0.00 Pismo Beach $0.00 San Luis Obispo $25,000.00 County $25,000.00 TOTAL $50,000.00 D.2c. Estimated number of unduplicated persons to benefit from CDBG funds: 466 D.2d. Estimated number of unduplicated households to benefit from CDBG funds: 243 D.2.e. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives. Page 64 of 444 Printed By: Donna Hawkins on 10/13/2025 15 of 19 Low Moderate Income LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective. Low/Moderate Income Clientele D.2.f. Identify all eligible activities that apply to the proposed project:  Public Services -General  Operating Costs of Homeless/AIDS Patients Programs  Senior Services  Handicapped Services  Legal Services  Youth Services  Transportation Services  Substance Abuse Services  Services for Battered and Abused Spouses  Crime Awareness or Neighborhood Cleanups  Fair Housing Activities  Tenant/Landlord/Housing Counseling  Child Care Services  Health Services  Services for Abused and Neglected Children  Mental Health Services  Job Training and Job Placement Services  Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits  Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises) D.2g. Explain how the proposed project meets the selected National Objective: The Supportive Housing Program meets the CDBG Low/Moderate Income (LMI) national objective under the Limited Clientele category, as the program serves a documented client population where over 95 percent qualify as low and moderate income persons, far exceeding the 51 percent threshold required. The program's income profile demonstrates this clearly, with 57% extremely low-income, 27% very low-income, and 12% low-income residents. PSHH maintains comprehensive documentation of household income through HUD-required certification at move-in Page 65 of 444 Printed By: Donna Hawkins on 10/13/2025 16 of 19 and annual recertification thereafter, with all data stored in the resident database and cross-referenced with the Supportive Housing Program client database. This documentation process ensures clear compliance with the LMI Limited Clientele national objective. D.2h. Will the services offered by your organization increase or expand as a result of CDBG assistance? Yes D.2i. Explain how your services will increase or expand as a result of CDBG assistance: CDBG assistance will enable the Supportive Housing Program to expand services to accommodate increasing numbers of VA Supportive Housing (VASH) voucher holders throughout the County, who receive priority placement at the top of waiting lists when units become available. The program will also expand to serve residents at non-CoC units at Beacon Studios, opening in the City of San Luis Obispo in December 2026. This expansion requires hiring a minimum of one additional licensed or associate clinical social worker to maintain appropriate client-to-staff caseload ratios as service demand grows. CDBG funding will support comprehensive professional development for all new and existing Supportive Housing Program staff to ensure high-quality, evidence-based service delivery across the expanding service area. The program will establish new Memoranda of Understanding (MOUs) with partner organizations to enhance service delivery, strengthen referral pathways, and enhance wraparound supports for vulnerable residents. The program will continue to deepen and diversify partnerships with community organizations, healthcare providers, and County agencies to provide new and modified services that better address evolving client needs, where utilization rates remain elevated at approximately 62% of County households annually. D.2j. Describe how the project will directly benefit the populations identified. The Supportive Housing Program directly benefits all identified populations through comprehensive clinical case management and housing stabilization services delivered by licensed and associate clinical social workers across 29 County affordable rental properties. Adults with Children: The program serves families with children through crisis intervention, financial assistance coordination for household needs, healthcare navigation for pediatric and family care, and school-related support services. Social workers help families access childcare resources, educational supports, and emergency assistance for rent and utilities that prevent housing instability and keep children in stable home environments. Adults without Children: Single adults and couples without children receive individualized case management addressing employment barriers, healthcare access, mental health support, and financial stability. Social workers provide counseling services, crisis intervention, and connections to community resources that build personal resiliency and long-term housing stability. Elderly/Senior: Senior residents, who comprised nearly one-third of the County's homeless population in the January 2024 Point-in-Time Count, receive specialized support including healthcare navigation for chronic condition management, assistance accessing Medicare and Social Security benefits, transportation coordination for medical appointments, and connections to senior-specific services. On-site health clinic partnerships remove transportation and cost barriers for uninsured seniors, while social workers provide advocacy for age-related housing accommodations. Persons At Risk of Homelessness: With 96% of residents qualifying as low-income or below (57% extremely low-income, 27% very low-income, 12% low-income), the program principally serves households at elevated risk of homelessness. Social workers provide proactive outreach when property managers identify residents experiencing challenges, coordinate emergency financial assistance for urgent expenses like rent and utilities, and offer crisis intervention that prevents eviction and maintains housing stability. Veterans: Veterans receive coordinated case management through the VA Supportive Housing (VASH) partnership, where PSHH social workers collaborate with VA social workers to provide integrated services. VASH voucher holders receive priority placement at the top of waiting lists for both dedicated VASH units and other available units across PSHH properties, with wraparound supports that address service-related disabilities, healthcare needs, and benefits navigation. Persons with Disabilities: Residents with disabilities receive behavioral health support, coordination with SLO County Behavioral Health for voluntary wraparound services including therapy and crisis response, healthcare Page 66 of 444 Printed By: Donna Hawkins on 10/13/2025 17 of 19 navigation for disability-related medical needs, and assistance accessing disability benefits and accommodations. The CenCal Health Enhanced Care Management partnership provides person-centered comprehensive care coordination for individuals with highly complex health and social needs through dedicated Lead Care Managers who organize medical, behavioral, dental, and social services. Unaccompanied Youth (under 25 years of age): While PSHH does serve Transition Age Youth, all TAY units are participating the Continuum of Care and not covered by this grant program. Low-Moderate Income Persons or Households: The program meets the CDBG Low/Moderate Income national objective through the Limited Clientele category, with over 95% of clients qualifying as LMI persons. PSHH documents household income according to HUD standards at move-in and through annual recertification, with all data stored in the resident database and cross-referenced with the Supportive Housing Program client database. Clinical case management services prevent housing loss among extremely vulnerable low-income households, maintaining near-zero eviction rates and preventing entries into the homeless services system. D.3. Are you requesting ESG funds? No D.3a. Amount of ESG funds requested: $0.00 D.3b. Please upload your ESG Policies and Procedures for each activity for which you are applying.  ESG Policies and Procedures *Required **No files uploaded D.3.c. Identify all eligible activities and their amounts that apply to the proposed project: Eligible Activities Amount Approximate Persons Served TOTAL $0.00 0 D.3.d. ESG Matching Funds (1:1 Match Required) Funding Source Amount TOTAL $0.00 D.4. Are you requesting General Fund Support funds? No D.4a. Amount of GFS funds requested: $0.00 D.4b. Identify all eligible activities that apply to the proposed project: Amount Approximate Persons Served TOTAL $0.00 0 Page 67 of 444 Printed By: Donna Hawkins on 10/13/2025 18 of 19 E. Supplemental Documents Completed by grants@pshhc.org on 10/7/2025 7:25 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 E. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Documentation PSHH C14. Regional Outcomes.pdf Page 68 of 444 Printed By: Donna Hawkins on 10/13/2025 19 of 19 Submit Completed by grants@pshhc.org on 10/10/2025 12:02 PM Case Id: 30590 Name: Supportive Housing Program, Peoples' Self-Help Housing - 2026Address: 1060 Kendall Road, San Luis Obispo , CA 93401 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds. Authorized Representative Signature June Eastham Electronically signed by grants@pshhc.org on 10/10/2025 12:02 PM Authorized Representative Title Grants Manager Page 69 of 444 Printed By: Donna Hawkins on 10/13/2025 1 of 20 Overview Completed by mleal@haslo.org on 10/9/2025 4:18 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 Overview County of San Luis Obispo Affordable Housing Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 70 of 444 Printed By: Donna Hawkins on 10/13/2025 2 of 20 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at slocounty.gov/HomelessServicesGrants. All applications must meet the eligibility criteria and requirements set forth in the NOFA and the respective funding program regulations. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on October 10, 2025. If you have any questions about the applications process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** For each Affordable Housing funding source, an overview is available that includes program description, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA): Section I.C for Community Development Block Grant (CDBG) Overview Section I.E for HOME Investment Partnerships Program (HOME) Overview **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Page 71 of 444 Printed By: Donna Hawkins on 10/13/2025 3 of 20 A. Applicant Information Completed by mleal@haslo.org on 10/9/2025 5:27 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name San Luis Obispo Nonprofit Housing Corporation A.2. Type of Organization Non-Profit A.2.a. Define Other: A.3. UEI Number: For more information, visit SAM.GOV DKJWAFNQ2JN4 A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required A.03.a. SLONP SAM.gov Registration.pdf A.4. Address 487 Leff Street San Luis Obispo, CA 93401 A.5. Is the organization faith based? No A.6. Date of Incorporation 10/16/1991 A.7. Please upload the following documentation:  Organizational Chart *Required A.7 - SLONP Org Chart.pdf  Incorporation Documents *Required A.7. - COI Insurance for SLONP.pdf Page 72 of 444 Printed By: Donna Hawkins on 10/13/2025 4 of 20 A.7. - EOP Insurance for SLONP.pdf A.7 - SLONP Articles of Incorporation.pdf A.7 - SLONP Bylaws 2017.pdf A.7 - SLONP Cert _ Legal Disclosure.pdf A.7 - SLONP Certificate of Good Standing - 2022-6-14.pdf A.7 - SLONP Evidence fo Tax-exempt status - IRS 501(c)(3).pdf A.7 - SLONP Signature Block.docx A.7 - SLONP Statement of Information - 2023-3-18 Signed.pdf  General Liability Insurance *Required A.7. - COI Insurance for SLONP.pdf A.7. - EOP Insurance for SLONP.pdf A.7 - SLONP Articles of Incorporation.pdf A.7 - SLONP Bylaws 2017.pdf A.7 - SLONP Cert _ Legal Disclosure.pdf A.7 - SLONP Certificate of Good Standing - 2022-6-14.pdf A.7 - SLONP Evidence fo Tax-exempt status - IRS 501(c)(3).pdf A.7 - SLONP Signature Block.docx A.7 - SLONP Statement of Information - 2023-3-18 Signed.pdf A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “Example Exhibit D - General Conditions”? Yes A.9. Annual Operating Budget $1,577,868.00 A.10. Number of Full-Time Paid Staff 1 A.11. Number of Part-Time Paid Staff 0 A.12. Number of Volunteers 0 CONTACT INFORMATION A.13. Contact Person Name Matt Leal A.13a. Contact Person Title Project Manager Page 73 of 444 Printed By: Donna Hawkins on 10/13/2025 5 of 20 A.13b. Phone Number (805) 391-1063 A.13c. Email mleal@haslo.org FINANCE CONTACT INFORMATION A.14. Finance Contact Person Name Ken Litzinger A.14a. Finance Contact Person Title CFO A.14b. Finance Phone Number (805) 594-5304 A.14c. Finance Email klitzinger@haslo.org Page 74 of 444 Printed By: Donna Hawkins on 10/13/2025 6 of 20 B. Applicant Capacity Completed by mleal@haslo.org on 10/9/2025 1:13 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 B. Applicant Capacity Please provide the following information. B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources. B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources. SLONP, and The Fort Group (partner) have received and managed grants since both organizations’ incorporation, which totals over 30 years. There have been a variety of grants received and managed including but not limited to; HOME, CDBG, T-29, Project Homekey, AFH, RDA, CARES, ROSS, Decarbonization, and HTF. To manage the variety of grants, there are systems in place to track and manage regulation compliance and reporting to the respective grantor. As the County knows, some of these grants may be set up as soft loans. B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and/or has recently completed (regardless of funding source). There are about fifteen (15) projects in the pipeline at various stages. Recently, the Anderson Hotel project and Shell Beach Senior have stabilized and converted from construction to permanent financing. There are three (3) that will be completed in the 4 - 5 months, including Maxine Lewis, Bridge Street Phase I, and Cleaver and Clark Commons. Two (2) projects are under construction, which include Monterey Senior, and Arroyo Terrace. And finally at the pre- development stage there are nine (9) projects, which, two (2) will be requesting funding in this round. B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project. SLONP administers Federal, State, and Local grants, and has strong systems and controls in place. SLONP will provide the record-keeping services for the project. SLONP undergoes annual audits by an independent CPA firm. B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required B.3.a. SLONP Audited Financials.pdf B.4. Briefly describe your organization’s record keeping system with relevance to the proposed project. SLONP owns and operates hundreds of deed restricted housing units in San Luis Obispo County. It is accustomed to keeping detailed records regarding income eligibility for all programs. Additionally, the Housing Authority of San Luis Obispo (HASLO) will be the management agent for this housing. HASLO has many years of experience in maintaining record keeping and accounting in conformity with HUD and State regulations. Staff are certified in low-income housing compliance. Projects are audited annually, and reports are provided to all funding sources. Detailed accounting records are maintained for all project costs and audited by third party auditing firms. B.5. Describe how your organization will document and maintain income status of each beneficiary in compliance with regulations? Page 75 of 444 Printed By: Donna Hawkins on 10/13/2025 7 of 20 As the managing agent, HASLO will perform all income certifications. HASLO has certified compliance specialists on staff with years of experience. At the housing application/intake stage income and asset information will be collected from each client, with back up documentation. Files will be maintained and available for county inspection. HASLO currently performs income and compliance certifications for over 3,000 clients annually. B.6. Describe your project staff’s experience and capacity to comply with Section 3 requirements (as outlined in 24 CFR Part 75). Our team has worked with County staff closely over the years to satisfy Section 3 as outlined in 24 CFR Part 75. The Director of Construction ensures that Section 3 language is included in the relevant construction documents and requests for proposals for contractors. Our team also provides the annual reports per the County’s request. B.7. If the County allocated funds to your organization in previous years, do any of those funds remain unspent? Yes B.7.a. Please provide the following information: Project Name Funding Source and Year Remaining Amount Monterey Family CDBG 2025 $321,866.00 Monterey Family T-29 2025 $69,448.00 $391,314.00 B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes Page 76 of 444 Printed By: Donna Hawkins on 10/13/2025 8 of 20 C. Proposed Project & Project Details Completed by mleal@haslo.org on 10/9/2025 4:33 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 C. Proposed Project & Project Details Please provide the following information. C.1. Name of Proposed Project Monterey Family Apartments C.2. What is the estimated total project completion cost? $52,926,816.00 C.3. Project/Program Address(es) 1422 Monterey Street San Luis Obispo, CA 93401 C.4. Accessor's Parcel Number(s). 001-137-015, 001-137-013 C.5. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo  City of Grover Beach - Not eligible for CDBG or HOME  Unincorporated Community Name of Unincorporated Community:  Countywide C.6. Will the project require any acquisitions? Yes C.6.a. Please upload the following documentation: Page 77 of 444 Printed By: Donna Hawkins on 10/13/2025 9 of 20  Appraisal of Property *Required C.6.a - HASLO Monterey St Apts SLO Land Appr.pdf C.6.b. What is the proposed purchase amount? $3,800,000.00 C.6.c. What is the anticipated escrow closing date? 11/18/2026 C.7. Will the current owner, residential occupants, and/or commercial occupants be displaced by the project? No C.7.a. Please upload the following documentation:  Relocation Plan or Certified Tenant Notifications *Required **No files uploaded C.7.b. Will the displacement be temporary or permanent? C.7.c. How long will the displacement last? C.7.d. Describe how the relocation costs will be paid. Include these costs in your Sources and Uses document. C.8. Provide a complete description of the proposed project and proposed outcomes: See questions C12 and C 13 below. C.8.a. Number and Unit Type (size) of Proposed Units Created and/or Rehabilitated: Unit Type (Size)Created Units Rehabbed Units 0 br 3 1 br 20 2 br 14 3 br 14 C.8.b. Of the total number of new units created, how many will be deed-restricted? 50 C.9. Please upload a timeline for key steps of project implementation. Include key steps or phases of project implementation such as, but not limited to, the following: predevelopment, financing, use permitting, construction permitting, demolition, grading, construction finance close, construction milestones, placed in service date, permanent loan conversion, etc.  Timeline *Required Page 78 of 444 Printed By: Donna Hawkins on 10/13/2025 10 of 20 C.9. - Project Timeline - Monterey Crossing Family.pdf C.10. Please upload a complete set of drawing/plans. Also include any maps or photos available.  Maps, Photos, Drawings, Plans *Required C.10. Aerial- Map- Photos Monterey Crossing Senior.pdf C.10. Project Plans (ARCH-0020-2022) Entitlement Set.pdf C.11. Please upload the Most Recent Market Study for the project. The market study is required for HOME funding. It is not required but is recommended for all other funding.  Most Recent Market Study C.11. Market Study Monterey St Apts SLO Family 4.15.2025.pdf C.12. Describe site and neighborhood standards including proximity to services, transportation, and employment: The project site is located in the northern portion of the City within a mixed-use neighborhood comprised of single- family homes and commercial properties. The project site is accessible from Monterey St. Residents will have access to transit options right along Monterey St. and the site is within walking distance of numerous amenities including Grocery, Pharmacy, Parks, Library, Medical and Senior Services. The site slopes uphill from Monterey St. with approximately 11’ of elevation difference. The project minimizes potential impacts to and from adjacent properties by locating commercial activities and open space areas towards Monterey Street and residential uses above the commercial towards the center of the property to provide adequate separation from the existing single-family residences in the adjacent R-2 zoning district. The vicinity is developed with a mix of commercial and residential uses that is conducive to a mixed-use project at this location. The project’s proposed common area is located along Monterey Street, which is oriented toward the commercial frontage, minimizing potential adverse impacts from non- residential project noise to the adjacent residential neighborhood. C.13. Describe in detail the current zoning designation of the project site. The project has obtained all land use entitlements from the San Luis Obispo Planning Commission for a new 86,180 square foot mixed use project consisting of 55 senior affordable units and 51 family affordable units and 4,336 of commercial space and a three-story parking garage and associated various exceptions, concessions and development waivers. C.14. Describe in detail the current land use of the project site. The site is vacant. C.15. Explain how the site’s current land use and zoning designation are, or are not, consistent with the proposed project. The Project site is vacant and the site is fully entitled for the proposed use. C.16. Provide an explanation of efforts and a timetable to obtain the necessary jurisdictional amendments to bring forth the project. N/A The project is fully entitled. Page 79 of 444 Printed By: Donna Hawkins on 10/13/2025 11 of 20 C.17. Have necessary Land Use Permits and/or Construction Building Permits been issued? Yes C.17a. If yes, what is their current expiration date(s)? D. Yes, project is fully entitled and in 4th round of building plan check. A Building permit ready letter is anticipated to be in hand in December. C.17b. If no, indicate when the permit(s) will be applied for or issued: C.18. Describe how the project will align with a Line of Effort (or multiple Lines of Effort) to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027). The project aligns with LOE 1, LOE 4 - The project creates new affordable housing and proposes to use CDBG to support affordable housing, while also leveraging tax credits. LOE 4(D)(3)) In addition, the City of San Luis Obispo can pool its CDBG with the County to speed up housing development, and thus in this scenario provide local support to address our funding gap. C.19. Select all population(s) expected to be served through this project and include number of units expected for each chosen population:  Low-/moderate-income households Expected number of units:  Multifamily Expected number of units: 51  Age Restricted (including seniors) Expected number of units:  Persons Experiencing Homelessness Expected number of units:  Persons with Disabilities Expected number of units:  Person Experiencing Chronic Homelessness Expected number of units: Page 80 of 444 Printed By: Donna Hawkins on 10/13/2025 12 of 20  Farmworkers Expected number of units:  Veterans Expected number of units:  Domestic Violence Survivors Expected number of units:  Unaccompanied Youth (under 25 years of age) Expected number of units: C.20. Has your organization previously received a grant to serve any of the populations expected to be served?? Yes C.20a. Provide a brief description of those grant activities and the outcomes you achieved: SLONP have successfully received grants for several development projects. These projects have positively contributed to the lack of affordable housing in San Luis Obispo County. C.21. Please name partner agencies as applicable and describe how they will participate in the delivery of the proposed project: The proposed project will complement the county’s efforts by providing affordable housing to those that meet the definition of low to moderate income. In our project’s case, developing new affordable housing for seniors. The agencies that we collaborate with are a part of the Commission on Aging and include but are not limited to SLO Health Agency, AmeriCorps Seniors, and Adult Services. C.22. Does the proposed project have support from the community? Yes C.22a. Please upload any letters of support or commitment from local governments or community partners.  Letters of Support **No files uploaded C.23. Has an environmental review been completed, CEQA and/or NEPA?  Yes - CEQA Review Complete Page 81 of 444 Printed By: Donna Hawkins on 10/13/2025 13 of 20  No - CEQA Review Not Complete  Yes - NEPA Review Complete  No - NEPA Review Not Complete  Yes - Both Have Been Completed  No - Neither Have Been Completed C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? Yes C.24a. Please upload the following documentation:  Environmental Assessment, Phase I or II *Required C.24.a. 2024-0925_1422-1480 Monterey Street Phase I ESA.pdf C.25. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? Yes C.25a. Please upload the following documentation:  Archeological/Historical Survey, Phase I or II *Required C.25.a. Albion Phase I report for 1422 Monterey Street project.pdf C.26. List and describe any known hazards-e.g., asbestos, radon, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable. N/A- All materials have been removed previously. C.27. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site? No C.28. Are the building(s)/structure(s) located on a historic site or within a local historic district? No C.29. Is the project located within a 100-year and/or 500-year flood zone? No C.29a. How will the project mitigate potential flooding on the site? C.29b. Does your organization have flood insurance for the project site? Page 82 of 444 Printed By: Donna Hawkins on 10/13/2025 14 of 20 C.30. Will demolition be required? No C.31. Are there any existing buildings on the project property that were constructed prior to 1978? No C.31a. Has an asbestos risk assessment report(s) been prepared for the building(s)? C.31b. Has the building(s) been abated for asbestos? C.31c. Has a lead hazard risk assessment report(s) been prepared for the building(s)? C.31d. Has the building(s) been abated for lead paint? C.31e. Will children occupy the building(s)? C.31f. Indicate the age range of the children that will occupy the building: Page 83 of 444 Printed By: Donna Hawkins on 10/13/2025 15 of 20 D. Funding & Eligible Activities Completed by mleal@haslo.org on 10/9/2025 5:24 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 D. Funding & Eligible Activities Please provide the following information. D.1. Total Project Funding (include all Sources and Uses of funding) $53,745,426.00 D.1.a. Please upload a Sources & Uses document for your proposed project:  Sources and Uses *Required D.01.a Monterey Family Proforma v6.00 Local Funding 100925.pdf D.1.b. Please upload all Commitment Letters for Funds. Required to demonstrate the 25% HOME matching funds; not required but recommended for all other funding requests.  Commitment Letters for Funds *Required D.01.b Banc of Cal Construction & Perm Loan.pdf D.01.b HASLO Commitment Letter - Monterey Family.pdf D.01.b HASLO PBV Commitment Letter - Monterey Family.pdf D.01.b HCD IIG Award Letter - Monterey Family.pdf D.01.b HTF Commitment - Monterey Family.pdf D.1.c. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? The project will size debt reflective of at least a 1.15 debt service coverage ratio for the permanent mortgage. Additionally, we maintain an operating reserve budget for additional contingency. The project will also feature a replacement reserve with regular contributions to ensure long term building operating is maintained. D.1.d. Please upload the 20-Year Pro Forma for the project to demonstrate continued viability and affordability of the project for at least 20 years.  Pro Forma (20-year) *Required D.01.d. 20 year Proforma - Monterey Family.xlsx D.2. Are you requesting HOME funds? Yes Page 84 of 444 Printed By: Donna Hawkins on 10/13/2025 16 of 20 D.2.a. Amount of HOME funds requested: $869,961.00 D.2.b. Proposed number of HOME-assisted (deed-restricted) units: 3 D.2.c. HOME Matching Funds: Sources Amount HASLO Public Funds Loan $2,681,125.00 $2,681,125.00 D.2.d. Identify all eligible activities that apply to the proposed project:  Acquisition  Rehabilitation  Relocation  Demolition  Site Preparation  New Construction  Multi-Family  Single Family D.2.e. Please indicate the number and type of all units CREATED Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Studio 2 1-Bedroom 7 2-Bedroom 7 3-Bedroom 8 Studio 1 1-Bedroom 8 2-Bedroom 5 3-Bedroom 4 1-Bedroom 5 2-Bedroom 2 3-Bedroom 1 Total 24 18 8 0 0 D.2.f. Is your project for REHABILITATION of existing units only? No Page 85 of 444 Printed By: Donna Hawkins on 10/13/2025 17 of 20 Please indicate the number and type of all EXISTING Units: Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 Please indicate the number and type of all units AFTER rehabilitation Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 D.3. Are you requesting CDBG funds? Yes D.3.a. Amount of CDBG funds requested: $722,388.00 D.3.b. Identify all eligible activities that apply to the proposed project:  Acquisitions  Rehabilitation  Demolition  Clearance and Site Preparation - In anticipation of a HOME funded project D.3.c. Are at least 51% of the units in the project designated as low-/moderate-income units? Yes D.3.d. How many new deed-restricted units will be constructed with CDBG funds? 50 D.3.e. Estimated number of unduplicated households to benefit from CDBG funds: Beneficiary Type Estimated Number Unduplicated Households 50 D.3.f. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives. Low Moderate Income LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective. Housing SLUM OR BLIGHT: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight Page 86 of 444 Printed By: Donna Hawkins on 10/13/2025 18 of 20 objective D.3.g. Explain how the proposed project meets the selected National Objective: The project meets the National Objective by benefiting low/moderate income households and persons through supporting the creation of affordable housing. D.3.h. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “Example Exhibit D - General Conditions” and “Example Exhibit E - Special Conditions”. Yes Page 87 of 444 Printed By: Donna Hawkins on 10/13/2025 19 of 20 E. Supplemental Documents Completed by mleal@haslo.org on 10/9/2025 5:29 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 E. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Information 24b. org docs.pdf 24b.Certified Copies Acknowledgment.pdf 26b. Certified LLC Registration- The Fort Group LLC.pdf 26e. Certificate of Standing Fort Group.pdf 22a. Fort Group Cert.pdf 22b. Statement of Info- Fort Group LLC.pdf 22c.Org Chart- The Fort Group, LLC.pdf 22d. Fort Group LLC Signature Block.docx Page 88 of 444 Printed By: Donna Hawkins on 10/13/2025 20 of 20 Submit Completed by mleal@haslo.org on 10/9/2025 5:30 PM Case Id: 30594 Name: Monterey Family Apartments - 2026 Address: 1422 Monterey Street, San Luis Obispo, CA 93401 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds. Authorized Representative Signature Matt Leal Electronically signed by mleal@haslo.org on 10/9/2025 5:29 PM Authorized Representative Title Project Manager Page 89 of 444 Printed By: Donna Hawkins on 10/13/2025 1 of 19 Overview Completed by dkilburn@asn.org on 10/9/2025 3:32 PM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 Overview County of San Luis Obispo Affordable Housing Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 90 of 444 Printed By: Donna Hawkins on 10/13/2025 2 of 19 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at slocounty.gov/HomelessServicesGrants. All applications must meet the eligibility criteria and requirements set forth in the NOFA and the respective funding program regulations. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on October 10, 2025. If you have any questions about the applications process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** For each Affordable Housing funding source, an overview is available that includes program description, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA): Section I.C for Community Development Block Grant (CDBG) Overview Section I.E for HOME Investment Partnerships Program (HOME) Overview **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Page 91 of 444 Printed By: Donna Hawkins on 10/13/2025 3 of 19 A. Applicant Information Completed by dkilburn@asn.org on 10/6/2025 11:16 AM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name Access Support Network A.2. Type of Organization Non-Profit A.2.a. Define Other: A.3. UEI Number: For more information, visit SAM.GOV TKGWRKNCNKP1 A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required EntityInformation_20250823-150920.pdf A.4. Address 1320 Nipomo St. San Luis Obispo, CA 93401 A.5. Is the organization faith based? No A.6. Date of Incorporation 05/26/1988 A.7. Please upload the following documentation:  Organizational Chart *Required 2025 SLO, SB, MC, SBn Org Chart.pdf  Incorporation Documents *Required Articles of Incorporation.pdf Page 92 of 444 Printed By: Donna Hawkins on 10/13/2025 4 of 19 3422662_Commercial Package Policy 01-CP-0000449-01-27.PDF 3422666_Accident Policy 07-AC-0000449-01-12.PDF 3422669_Commercial Umbrella Policy 01-UB-0000449-01-18.PDF 3432884_Commercial Package Endo 001 01-CP-0000449-01-27.PDF  General Liability Insurance *Required Articles of Incorporation.pdf 3422662_Commercial Package Policy 01-CP-0000449-01-27.PDF 3422666_Accident Policy 07-AC-0000449-01-12.PDF 3422669_Commercial Umbrella Policy 01-UB-0000449-01-18.PDF 3432884_Commercial Package Endo 001 01-CP-0000449-01-27.PDF A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “Example Exhibit D - General Conditions”? Yes A.9. Annual Operating Budget $3,050,000.00 A.10. Number of Full-Time Paid Staff 22 A.11. Number of Part-Time Paid Staff 3 A.12. Number of Volunteers 55 CONTACT INFORMATION A.13. Contact Person Name David Kilburn A.13a. Contact Person Title Executive Director A.13b. Phone Number (805) 242-3345 A.13c. Email dkilburn@asn.org FINANCE CONTACT INFORMATION A.14. Finance Contact Person Name Page 93 of 444 Printed By: Donna Hawkins on 10/13/2025 5 of 19 Rick Hossli A.14a. Finance Contact Person Title Finance Coordinator A.14b. Finance Phone Number (805) 459-0553 A.14c. Finance Email rhossli@asn.org Page 94 of 444 Printed By: Donna Hawkins on 10/13/2025 6 of 19 B. Applicant Capacity Completed by dkilburn@asn.org on 10/9/2025 2:26 PM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 B. Applicant Capacity Please provide the following information. B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources. The Access Support Network (ASN) has proudly served San Luis Obispo County for over 40 years, expanding its reach to now serve four counties: San Luis Obispo, Monterey, San Benito, and Santa Barbara. ASN delivers a wide range of health and supportive services to individuals and communities in need. The organization has earned a strong reputation as a reliable and accountable recipient of local, county, state, and federal grant funding. Because ASN receives more than $750,000 in federal funds annually, it is subject to the Single Audit requirements. Throughout its history, ASN has maintained an exemplary compliance record, with no findings reported in any individual grant audit or agency-wide Single Audit. B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and/or has recently completed (regardless of funding source). While ASN does not currently have any active housing development projects, the organization is deeply focused on advancing health programs that promote health equity among the most underserved populations in our communities. ASN is at the forefront of innovation with the development of a pilot program designed to treat hepatitis C using a “rapid start” treatment protocol. This program incorporates a newly developed point-of-care testing device capable of providing HCV RNA results in less than one hour, allowing clients to begin treatment immediately. The California Department of Public Health has recognized ASN’s leadership in this area and is collaborating with the organization to establish best practices that maximize treatment success and improve cure rates for individuals living with hepatitis C. B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project. ASN’s annual audit is conducted in accordance with Generally Accepted Auditing Standards (GAAS) and the Government Accountability Office (GAO) Standards for Audits of Governmental Organizations, Programs, Activities, and Functions. The audit also complies with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), formerly referred to as A-133. Audit procedures are tailored to meet the specific needs of nonprofit organizations and include tests of documentary evidence supporting recorded transactions. When appropriate, auditors may confirm certain assets and liabilities directly with funding sources, creditors, and financial institutions. During the audit, written representations are obtained from management regarding the accuracy of financial statements and related matters, including a formal management representation letter signed by the Executive Director. While every effort is made to ensure thoroughness, audits inherently carry some risk that material errors, irregularities, or illegal acts—including fraud or embezzlement—may not be detected. However, any such findings or concerns that come to the auditor’s attention are promptly reported to ASN management and the Board of Directors. B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required Page 95 of 444 Printed By: Donna Hawkins on 10/13/2025 7 of 19 ASN Audit Report FYE June 30 2022.pdf B.4. Briefly describe your organization’s record keeping system with relevance to the proposed project. ASN utilizes double entry-bookkeeping and classification standards as well as a client services database that is maintained outside of the CDPH portal (formerly ARIES, now HCC). Finance staff also keep detailed spreadsheets in addition to those used for invoicing purposes to track contract requirements, budget to actuals, etc. We utilize both Sharepoint and Google Drive for Document storage, and keep hard copies of all files at our office in San Luis Obispo. Any files with sensitive information (i.e. identifying client information) are kept in locked filing cabinets. B.5. Describe how your organization will document and maintain income status of each beneficiary in compliance with regulations? Each tenant in our program is a Section 8 Housing Choice Voucher recipient. The local Public Housing Authority (PHA) is solely responsible for determining each tenant’s income eligibility and verifying their continued qualification for the program. We maintain documentation from the PHA confirming each tenant’s voucher status and rent portion based on verified income. All records are securely stored and kept up to date in compliance with HUD and local regulations. Our staff are trained to coordinate with the PHA and ensure ongoing compliance through proper documentation and file management. ASN keeps detailed records of expenditures and other fiscal files for at least seven years following the final date of an authorized payment. After this time, documents may be destroyed. B.6. Describe your project staff’s experience and capacity to comply with Section 3 requirements (as outlined in 24 CFR Part 75). Our project staff has extensive experience complying with Section 3 requirements under 24 CFR Part 75 and is well- versed in the updated benchmarks and definitions. We have a dedicated compliance coordinator who oversees all Section 3 activities, including local hiring outreach, recordkeeping, and reporting through HUD systems. Staff regularly engage with local workforce agencies and community organizations to recruit Section 3 workers and businesses. Subcontractors are provided with guidance and monitored to ensure full compliance. Our team is fully equipped to meet Section 3 goals and maximize economic opportunities for low-income individuals. B.7. If the County allocated funds to your organization in previous years, do any of those funds remain unspent? No B.7.a. Please provide the following information: Project Name Funding Source and Year Remaining Amount $0.00 B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes Page 96 of 444 Printed By: Donna Hawkins on 10/13/2025 8 of 19 C. Proposed Project & Project Details Completed by dkilburn@asn.org on 10/10/2025 9:58 AM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 C. Proposed Project & Project Details Please provide the following information. C.1. Name of Proposed Project Adriance Court Roofing C.2. What is the estimated total project completion cost? $0.00 C.3. Project/Program Address(es) 1062 Islay and 1531 Santa Rosa Sts. San Luis Obispo, CA 93401 C.4. Accessor's Parcel Number(s). 003 244 017 C.5. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo  City of Grover Beach - Not eligible for CDBG or HOME  Unincorporated Community Name of Unincorporated Community:  Countywide C.6. Will the project require any acquisitions? No C.6.a. Please upload the following documentation: Page 97 of 444 Printed By: Donna Hawkins on 10/13/2025 9 of 19  Appraisal of Property *Required **No files uploaded C.6.b. What is the proposed purchase amount? $0.00 C.6.c. What is the anticipated escrow closing date? C.7. Will the current owner, residential occupants, and/or commercial occupants be displaced by the project? No C.7.a. Please upload the following documentation:  Relocation Plan or Certified Tenant Notifications *Required **No files uploaded C.7.b. Will the displacement be temporary or permanent? C.7.c. How long will the displacement last? C.7.d. Describe how the relocation costs will be paid. Include these costs in your Sources and Uses document. C.8. Provide a complete description of the proposed project and proposed outcomes: Adriance Court Bungalows offers low-income, permanent housing to medically fragile clients. The roof of each of the nine bungalows must be replaced. We will prioritize the highest need roof and work our way to having them all completed. These needed repairs will help ensure that these households remain stably housed. C.8.a. Number and Unit Type (size) of Proposed Units Created and/or Rehabilitated: Unit Type (Size)Created Units Rehabbed Units 1bed/1 bath Approx. 800 sq ft 9 C.8.b. Of the total number of new units created, how many will be deed-restricted? 0 C.9. Please upload a timeline for key steps of project implementation. Include key steps or phases of project implementation such as, but not limited to, the following: predevelopment, financing, use permitting, construction permitting, demolition, grading, construction finance close, construction milestones, placed in service date, permanent loan conversion, etc.  Timeline *Required Timeline of Project.pdf Timeline for Adriance Court Roof Replacement.pdf Page 98 of 444 Printed By: Donna Hawkins on 10/13/2025 10 of 19 C.10. Please upload a complete set of drawing/plans. Also include any maps or photos available.  Maps, Photos, Drawings, Plans *Required newgenerationpaintinginc_invoice_670_Redacted.pdf C.11. Please upload the Most Recent Market Study for the project. The market study is required for HOME funding. It is not required but is recommended for all other funding.  Most Recent Market Study **No files uploaded C.12. Describe site and neighborhood standards including proximity to services, transportation, and employment: These units are conveniently located downtown San Luis Obispo near bus routes, hospitals, grocery stores, and places with employment opportunities. C.13. Describe in detail the current zoning designation of the project site. The property is zoned residential. C.14. Describe in detail the current land use of the project site. N/A C.15. Explain how the site’s current land use and zoning designation are, or are not, consistent with the proposed project. N/A C.16. Provide an explanation of efforts and a timetable to obtain the necessary jurisdictional amendments to bring forth the project. N/A C.17. Have necessary Land Use Permits and/or Construction Building Permits been issued? No C.17a. If yes, what is their current expiration date(s)? C.17b. If no, indicate when the permit(s) will be applied for or issued: The roofing contractor will obtain the necessary permits as required. C.18. Describe how the project will align with a Line of Effort (or multiple Lines of Effort) to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027). Repairing the roofs directly supports **Line of Effort 1: Expand Permanent and Supportive Housing** by preserving safe, stable housing units for Section 8 voucher recipients at risk of homelessness. Ensuring the habitability of these units helps prevent displacement and maintains long-term housing stability. The project also aligns with **Line of Page 99 of 444 Printed By: Donna Hawkins on 10/13/2025 11 of 19 Effort 2: Strengthen Supportive Services**, as safe housing is foundational to delivering effective support services. A secure and well-maintained home environment allows case managers and service providers to focus on tenant well- being and progress. By addressing critical repairs, the project reinforces the County’s strategic goal of preventing homelessness through housing retention. C.19. Select all population(s) expected to be served through this project and include number of units expected for each chosen population:  Low-/moderate-income households Expected number of units: 8  Multifamily Expected number of units:  Age Restricted (including seniors) Expected number of units:  Persons Experiencing Homelessness Expected number of units: 8  Persons with Disabilities Expected number of units: 8  Person Experiencing Chronic Homelessness Expected number of units: 8  Farmworkers Expected number of units:  Veterans Expected number of units:  Domestic Violence Survivors Page 100 of 444 Printed By: Donna Hawkins on 10/13/2025 12 of 19 Expected number of units:  Unaccompanied Youth (under 25 years of age) Expected number of units: C.20. Has your organization previously received a grant to serve any of the populations expected to be served?? Yes C.20a. Provide a brief description of those grant activities and the outcomes you achieved: As ASN has over 40 years of successful grant deliverables and strong partnerships. Our work is funded through a diverse range of sources, including the State of California Department of Public Health, the City of San Luis Obispo, San Luis Obispo County grants, and private funders. These partnerships and funding streams ensure alignment with the Countywide Plan and provide comprehensive services to those in need. We have four decades of programmatic success in meeting deliverables. C.21. Please name partner agencies as applicable and describe how they will participate in the delivery of the proposed project: We regularly partner with HASLO (Housing Authority of San Luis Obispo), TMHA (Transitions-Mental Health Association), the Coalition of Homeless Services of San Luis Obispo County, and the Housing Coalition of San Luis Obispo to support coordinated efforts in addressing homelessness and expanding access to stable housing. These collaborations help align our work with the Countywide Plan to Address Homelessness and ensure residents receive comprehensive support. However, for this specific project, we will not engage in active collaboration due to its narrow scope, which is limited to essential roof repairs. The project focuses solely on maintaining the safety and habitability of existing housing units for current Section 8 tenants. While collaboration remains a cornerstone of our broader initiatives, the technical nature of this work does not require external coordination. C.22. Does the proposed project have support from the community? Yes C.22a. Please upload any letters of support or commitment from local governments or community partners.  Letters of Support **No files uploaded C.23. Has an environmental review been completed, CEQA and/or NEPA?  Yes - CEQA Review Complete  No - CEQA Review Not Complete  Yes - NEPA Review Complete  No - NEPA Review Not Complete  Yes - Both Have Been Completed Page 101 of 444 Printed By: Donna Hawkins on 10/13/2025 13 of 19  No - Neither Have Been Completed C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? No C.24a. Please upload the following documentation:  Environmental Assessment, Phase I or II *Required **No files uploaded C.25. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? No C.25a. Please upload the following documentation:  Archeological/Historical Survey, Phase I or II *Required **No files uploaded C.26. List and describe any known hazards-e.g., asbestos, radon, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable. N/A C.27. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site? No C.28. Are the building(s)/structure(s) located on a historic site or within a local historic district? Yes C.29. Is the project located within a 100-year and/or 500-year flood zone? No C.29a. How will the project mitigate potential flooding on the site? C.29b. Does your organization have flood insurance for the project site? C.30. Will demolition be required? No C.31. Are there any existing buildings on the project property that were constructed prior to 1978? Yes C.31a. Has an asbestos risk assessment report(s) been prepared for the building(s)? No C.31b. Has the building(s) been abated for asbestos? Page 102 of 444 Printed By: Donna Hawkins on 10/13/2025 14 of 19 No C.31c. Has a lead hazard risk assessment report(s) been prepared for the building(s)? No C.31d. Has the building(s) been abated for lead paint? No C.31e. Will children occupy the building(s)? No C.31f. Indicate the age range of the children that will occupy the building: Page 103 of 444 Printed By: Donna Hawkins on 10/13/2025 15 of 19 D. Funding & Eligible Activities Completed by dkilburn@asn.org on 10/10/2025 2:00 PM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 D. Funding & Eligible Activities Please provide the following information. D.1. Total Project Funding (include all Sources and Uses of funding) $76,000.00 D.1.a. Please upload a Sources & Uses document for your proposed project:  Sources and Uses *Required Adriance Roofs_sources_and_uses.pdf D.1.b. Please upload all Commitment Letters for Funds. Required to demonstrate the 25% HOME matching funds; not required but recommended for all other funding requests.  Commitment Letters for Funds *Required ASN Letter of Commitment.pdf D.1.c. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? Operating and maintenance costs are included in the profit and loss statements. Income originates from tenant rents and HAP rent payments from the Housing Authority of San Luis Obispo. D.1.d. Please upload the 20-Year Pro Forma for the project to demonstrate continued viability and affordability of the project for at least 20 years.  Pro Forma (20-year) *Required Adriance 2025 proforma.pdf D.2. Are you requesting HOME funds? No D.2.a. Amount of HOME funds requested: $0.00 D.2.b. Proposed number of HOME-assisted (deed-restricted) units: Page 104 of 444 Printed By: Donna Hawkins on 10/13/2025 16 of 19 D.2.c. HOME Matching Funds: Sources Amount $0.00 D.2.d. Identify all eligible activities that apply to the proposed project:  Acquisition  Rehabilitation  Relocation  Demolition  Site Preparation  New Construction  Multi-Family  Single Family D.2.e. Please indicate the number and type of all units CREATED Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 D.2.f. Is your project for REHABILITATION of existing units only? Please indicate the number and type of all EXISTING Units: Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 Please indicate the number and type of all units AFTER rehabilitation Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 D.3. Are you requesting CDBG funds? Yes D.3.a. Amount of CDBG funds requested: $70,000.00 Page 105 of 444 Printed By: Donna Hawkins on 10/13/2025 17 of 19 D.3.b. Identify all eligible activities that apply to the proposed project:  Acquisitions  Rehabilitation  Demolition  Clearance and Site Preparation - In anticipation of a HOME funded project D.3.c. Are at least 51% of the units in the project designated as low-/moderate-income units? Yes D.3.d. How many new deed-restricted units will be constructed with CDBG funds? 0 D.3.e. Estimated number of unduplicated households to benefit from CDBG funds: Beneficiary Type Estimated Number D.3.f. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives. Low Moderate Income LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective. Housing SLUM OR BLIGHT: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight objective D.3.g. Explain how the proposed project meets the selected National Objective: This project supports the rehabilitation and improvement of housing for low- and moderate-income (L/M) individuals, including people living with HIV/AIDS. Access Support Network, a nonprofit organization and the property owner, will carry out the improvements. Eligible under the CDBG program, activities include site improvements on publicly owned land to support affordable rental housing, as well as the rehabilitation of nonprofit-owned, nonresidential buildings that provide housing or related services to low-income populations. The goal is to preserve and expand safe, affordable housing while supporting vulnerable residents in alignment with HUD’s community development objectives. D.3.h. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “Example Exhibit D - General Conditions” and “Example Exhibit E - Special Conditions”. Yes Page 106 of 444 Printed By: Donna Hawkins on 10/13/2025 18 of 19 E. Supplemental Documents Completed by dkilburn@asn.org on 10/10/2025 2:01 PM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 E. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Information **No files uploaded Page 107 of 444 Printed By: Donna Hawkins on 10/13/2025 19 of 19 Submit Completed by dkilburn@asn.org on 10/10/2025 2:02 PM Case Id: 30582 Name: Access Support Network Adriance Court - 2026 Address: 1062 Islay and 1531 Santa Rosa Sts., San Luis Obispo, CA 93401 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds. Authorized Representative Signature David Kilburn Electronically signed by dkilburn@asn.org on 10/10/2025 2:01 PM Authorized Representative Title Executive Director Page 108 of 444 Printed By: Donna Hawkins on 10/13/2025 1 of 21 Overview Completed by planning@capslo.org on 10/10/2025 2:26 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 Overview County of San Luis Obispo Affordable Housing Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 109 of 444 Printed By: Donna Hawkins on 10/13/2025 2 of 21 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at slocounty.gov/HomelessServicesGrants. All applications must meet the eligibility criteria and requirements set forth in the NOFA and the respective funding program regulations. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on October 10, 2025. If you have any questions about the applications process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** For each Affordable Housing funding source, an overview is available that includes program description, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA): Section I.C for Community Development Block Grant (CDBG) Overview Section I.E for HOME Investment Partnerships Program (HOME) Overview **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Page 110 of 444 Printed By: Donna Hawkins on 10/13/2025 3 of 21 A. Applicant Information Completed by planning@capslo.org on 9/23/2025 9:57 AM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name Community Action Partnership of San Luis Obispo County, Inc. A.2. Type of Organization Non-Profit A.2.a. Define Other: A.3. UEI Number: For more information, visit SAM.GOV GBL8FWWVCLC5 A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required SAM-CAPSLO Registration 2025-2026 screenshot.jpg A.4. Address 1030 Southwood Dr. San Luis Obispo, CA 93401 A.5. Is the organization faith based? No A.6. Date of Incorporation 12/09/1965 A.7. Please upload the following documentation:  Organizational Chart *Required CAPSLO Org Chart 1-25.pdf  Incorporation Documents *Required 25-26 Cert of Liability Insurance.pdf Page 111 of 444 Printed By: Donna Hawkins on 10/13/2025 4 of 21 Articles of Incorporation.pdf  General Liability Insurance *Required 25-26 Cert of Liability Insurance.pdf Articles of Incorporation.pdf A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “Example Exhibit D - General Conditions”? Yes A.9. Annual Operating Budget $111,548,450.00 A.10. Number of Full-Time Paid Staff 892 A.11. Number of Part-Time Paid Staff 26 A.12. Number of Volunteers 1,334 CONTACT INFORMATION A.13. Contact Person Name Jim McNamara A.13a. Contact Person Title CAPSLO Energy Director A.13b. Phone Number (805) 541-4122 A.13c. Email jmcnamara@capslo.org FINANCE CONTACT INFORMATION A.14. Finance Contact Person Name Joan Limov A.14a. Finance Contact Person Title Chief Financial Officer A.14b. Finance Phone Number Page 112 of 444 Printed By: Donna Hawkins on 10/13/2025 5 of 21 (805) 544-4355 A.14c. Finance Email jlimov@capslo.org Page 113 of 444 Printed By: Donna Hawkins on 10/13/2025 6 of 21 B. Applicant Capacity Completed by planning@capslo.org on 10/10/2025 2:36 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 B. Applicant Capacity Please provide the following information. B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources. Since its inception in 1965, CAPSLO has received and successfully managed a variety of grants that address the unmet needs of low-income and vulnerable individuals and families through County, State, and Federal sources. County grants include but are not limited to CBO/PHG, Departments of CDBG, Social Services (DSS), Public Health, Behavioral Health, Probation, ESG, General Funds, and more recently, Coordinated Entry and PLHA grants. State grants include but are not limited to the Office of Emergency Services, Office of Child Abuse Prevention, Department of Education, Department of Social Services, and Community Services and Development (CSD), which designates the organization as a Community Action Agency because it distributes funds from the Community Services Block Grant (CSBG). Federal - The majority of CAPSLO's funding comes from the Administration for Children and Families, Office of Head Start, which the agency has been receiving since 1965, but also Substance Abuse and Mental Health Services Administration (SAMHSA) and the Department of Veteran Affairs. The Energy Division, the focus of this application, receives funding from CSD for the Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy for the Weatherization Assistance Program (DOE WAP) and Bipartisan Infrastructure Law Weatherization Assistance Program (Bil WAP), the Area Agency on Aging, Santa Barbara County CDBG, City of Pismo Beach, City of Santa Maria, andPG&E. B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and/or has recently completed (regardless of funding source). In the past five years, the agency completed 34 Prado as a licensed substance use disorder facility and two Head Start child care centers are nearing completion in Atascadero and Salinas. Energy Services has completed an average of 40 larger home repair projects per year over the past four years. B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project. CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board as well as the full Board of Directors and senior management annually. B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required Audit 2024.pdf Page 114 of 444 Printed By: Donna Hawkins on 10/13/2025 7 of 21 B.4. Briefly describe your organization’s record keeping system with relevance to the proposed project. Client and household demographic data is captured, including household income, size, disability status, age, services provided, etc. Appropriate income documentation is required, which includes one of the following: recent pay-stubs, bank statements, income tax returns, or proof of participation in an approved alternative low-income program (provided the income thresholds are equal to or lower than the HUD identified income levels). All copies of client household data are kept in client files, and recorded in Hancock Software, the Energy Service's program database, and in CAPSLO's agency-wide database, ClientTrack. The agency will be transitioning from ClientTrack to WIPFLI starting October 1; full backup of client data is ensured. B.5. Describe how your organization will document and maintain income status of each beneficiary in compliance with regulations? Energy Services will collect income documentation from all household members and documentation of home ownership as part of the enrollment process for each beneficiary. All documents will be kept in client files along with completed applications. B.6. Describe your project staff’s experience and capacity to comply with Section 3 requirements (as outlined in 24 CFR Part 75). The Energy Services Director is responsible for all areas of the Weatherization, Utility Assistance, and Home Repair programs, including staff supervision; budgeting and financial management; program administration; achievement of each program's goals and objectives; marketing and promotion; research and new program development; technical support and construction management; quality control; and continuous program improvement in San Luis Obispo, Monterey, Santa Cruz, and northern Santa Barbara counties. Under the supervision of the Program Director, three Crew Supervisors oversee all construction and home repair work, monitor quality, and ensure compliance with program standards and building codes. Energy Outreach Specialists conduct site visits, interview clients, complete intake applications, collect income documentation and proof of home ownership, and conduct pre-assessments for the home repair projects. Administrative staff, including Program Specialists and Finance Specialists, organize client files, process building permit applications, schedule work and prepare invoices and reports. Under supervision of the Crew Supervisor, Installers and Technicians inspect homes to determine materials needed and repairs to be made; install weatherization measures and perform home repairs on designated homes for funded programs; and maintain accurate records of work performed and materials used on the job. Repairs are carried out by CAPSLO staff who work under the company's contractor's license (#623259). The Program Director, along with administrative and field staff, average over 20 years of experience in all aspects of the program. They participate in annual training and updates with SLO County Adult Protective Services staff. B.7. If the County allocated funds to your organization in previous years, do any of those funds remain unspent? Yes B.7.a. Please provide the following information: Project Name Funding Source and Year Remaining Amount Minor Home Repair County of San Luis Obispo 2025 $64,550.00 Minor Home Repair City of Pismo Beach $18,600.00 We have projects lined up and are working on them daily. $0.00 $83,150.00 B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes Page 115 of 444 Printed By: Donna Hawkins on 10/13/2025 8 of 21 Page 116 of 444 Printed By: Donna Hawkins on 10/13/2025 9 of 21 C. Proposed Project & Project Details Completed by planning@capslo.org on 10/10/2025 2:55 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 C. Proposed Project & Project Details Please provide the following information. C.1. Name of Proposed Project Minor Home Repair C.2. What is the estimated total project completion cost? $675,266.00 C.3. Project/Program Address(es) 3970 Short St., Suite 110 San Luis Obispo, CA 93401--4547 C.4. Accessor's Parcel Number(s). There will be separate Accessor's Parcel Numbers for each home repair project. These will be collected at the time of client intake and enrollment. C.5. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo  City of Grover Beach - Not eligible for CDBG or HOME  Unincorporated Community Name of Unincorporated Community:  Countywide C.6. Will the project require any acquisitions? No Page 117 of 444 Printed By: Donna Hawkins on 10/13/2025 10 of 21 C.6.a. Please upload the following documentation:  Appraisal of Property *Required **No files uploaded C.6.b. What is the proposed purchase amount? $0.00 C.6.c. What is the anticipated escrow closing date? C.7. Will the current owner, residential occupants, and/or commercial occupants be displaced by the project? No C.7.a. Please upload the following documentation:  Relocation Plan or Certified Tenant Notifications *Required **No files uploaded C.7.b. Will the displacement be temporary or permanent? C.7.c. How long will the displacement last? C.7.d. Describe how the relocation costs will be paid. Include these costs in your Sources and Uses document. C.8. Provide a complete description of the proposed project and proposed outcomes: The project involves the completion of minor home repairs and accessibility improvements in homes occupied by low- and very low-income members of the community. The agency will perform outreach and work with its partners to identify households that qualify for this assistance and have needs that can be met through the program. Once projects are identified, the program will develop a project description and cost estimate for each project and submit that information to County staff for review and approval. Approved projects will then be scheduled for work to be completed by agency staff. The outcome is to help vulnerable members of our community remain safely in their own homes, improving their self-sufficiency and independence and thereby reducing homelessness and dependency. C.8.a. Number and Unit Type (size) of Proposed Units Created and/or Rehabilitated: Unit Type (Size)Created Units Rehabbed Units Single-family homes 0 35 Manufactured homes 25 C.8.b. Of the total number of new units created, how many will be deed-restricted? 0 C.9. Please upload a timeline for key steps of project implementation. Include key steps or phases of project implementation such as, but not limited to, the following: predevelopment, financing, use permitting, construction Page 118 of 444 Printed By: Donna Hawkins on 10/13/2025 11 of 21 permitting, demolition, grading, construction finance close, construction milestones, placed in service date, permanent loan conversion, etc.  Timeline *Required C9 Timeline for key steps of project implementation.pdf C.10. Please upload a complete set of drawing/plans. Also include any maps or photos available.  Maps, Photos, Drawings, Plans *Required Minor Home Repair does not possess any maps.pdf C.11. Please upload the Most Recent Market Study for the project. The market study is required for HOME funding. It is not required but is recommended for all other funding.  Most Recent Market Study **No files uploaded C.12. Describe site and neighborhood standards including proximity to services, transportation, and employment: This will vary. The program will involve completing projects on homes located throughout the County of San Luis Obispo and cities identified. C.13. Describe in detail the current zoning designation of the project site. N/A C.14. Describe in detail the current land use of the project site. N/A C.15. Explain how the site’s current land use and zoning designation are, or are not, consistent with the proposed project. N/A C.16. Provide an explanation of efforts and a timetable to obtain the necessary jurisdictional amendments to bring forth the project. N/A C.17. Have necessary Land Use Permits and/or Construction Building Permits been issued? No C.17a. If yes, what is their current expiration date(s)? C.17b. If no, indicate when the permit(s) will be applied for or issued: We will obtain construction building permits when and if they are needed. C.18. Describe how the project will align with a Line of Effort (or multiple Lines of Effort) to support the San Luis Page 119 of 444 Printed By: Donna Hawkins on 10/13/2025 12 of 21 Obispo Countywide Plan to Address Homelessness (2022-2027). Minor Home Repair aligns best with the county's "Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts." This project is a supportive service for one of the county's identified beneficiary groups -- older adults/medically fragile. Minor Home Repair keeps this population safely housed and helps prevent homelessness by amending substandard housing and accessibility issues. C.19. Select all population(s) expected to be served through this project and include number of units expected for each chosen population:  Low-/moderate-income households Expected number of units: 60  Multifamily Expected number of units:  Age Restricted (including seniors) Expected number of units:  Persons Experiencing Homelessness Expected number of units:  Persons with Disabilities Expected number of units: 45  Person Experiencing Chronic Homelessness Expected number of units:  Farmworkers Expected number of units: 5  Veterans Expected number of units: 10 Page 120 of 444 Printed By: Donna Hawkins on 10/13/2025 13 of 21  Domestic Violence Survivors Expected number of units:  Unaccompanied Youth (under 25 years of age) Expected number of units: C.20. Has your organization previously received a grant to serve any of the populations expected to be served?? Yes C.20a. Provide a brief description of those grant activities and the outcomes you achieved: Since 1980, we have received multiple federal, state and local grants to serve the populations expected to be served. These include Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy Weatherization Assistance Program (DOE WAP), Area Agency on Aging Senior Home Repair Program, and CDBG Home Repair Programs with San Luis Obispo and Santa Barbara counties as well as local municipalities. LIHEAP and DOE WAP support the weatherization of over 250 homes per year on average, providing diagnostic testing (blower door test, duct system testing and sealing, combustion appliance safety testing, replacement of furnaces, water heaters and cooking appliances, installation of weathering measures like attic insulation, door weatherstripping, windows, water saving measures, and carbon monoxide and smoke alarms. Energy Services completes minor repairs, like the installation of grab bars and handrails, for approximately 500 households per year in our Senior Home Repair Program, funded by the Area Agency on Aging. Energy Services completes from 40 to 100 larger Home Repair projects with the CDBG-funded Minor Home Repair Program, which covers San Luis Obispo and Northern Santa Barbara counties. C.21. Please name partner agencies as applicable and describe how they will participate in the delivery of the proposed project: Minor Home Repair and other programs targeted at seniors, the disabled, and lower income households benefit from mutual referral of clients for services. Clients are referred to CAPSLO for home repair services by service providers, such as the Department of Social Services’ (DSS) Adult Protective Services, the Social Security Administration, the Area Agency on Aging, in-home health service providers, food service providers (food pantries, Meals That Connect, Senior Nutrition), and other senior services. This program, along with County senior-serving programs, cross-refer to one another when additional support services are identified. Programs work together to ensure the safety and independence of San Luis Obispo County seniors. This program has consistently been supported by local jurisdictions, evidenced by the many years of CDBG funding received by both SLO County, City of Pismo Beach, City of Santa Maria and, more recently, County of Santa Barbara. C.22. Does the proposed project have support from the community? Yes C.22a. Please upload any letters of support or commitment from local governments or community partners.  Letters of Support Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf Page 121 of 444 Printed By: Donna Hawkins on 10/13/2025 14 of 21 C.23. Has an environmental review been completed, CEQA and/or NEPA?  Yes - CEQA Review Complete  No - CEQA Review Not Complete  Yes - NEPA Review Complete  No - NEPA Review Not Complete  Yes - Both Have Been Completed  No - Neither Have Been Completed C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? No C.24a. Please upload the following documentation:  Environmental Assessment, Phase I or II *Required **No files uploaded C.25. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? No C.25a. Please upload the following documentation:  Archeological/Historical Survey, Phase I or II *Required **No files uploaded C.26. List and describe any known hazards-e.g., asbestos, radon, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable. Lead-based paint may be present in homes built prior to 1978. CAPSLO is an EPA-certified contractor and field staff have completed applicable training in lead-safe work practices. C.27. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site? No C.28. Are the building(s)/structure(s) located on a historic site or within a local historic district? No C.29. Is the project located within a 100-year and/or 500-year flood zone? Yes C.29a. How will the project mitigate potential flooding on the site? There will be multiple projects, some of which may be located within designated flood zones, which will be addressed in the environmental review process for each project. Page 122 of 444 Printed By: Donna Hawkins on 10/13/2025 15 of 21 C.29b. Does your organization have flood insurance for the project site? No C.30. Will demolition be required? No C.31. Are there any existing buildings on the project property that were constructed prior to 1978? Yes C.31a. Has an asbestos risk assessment report(s) been prepared for the building(s)? No C.31b. Has the building(s) been abated for asbestos? No C.31c. Has a lead hazard risk assessment report(s) been prepared for the building(s)? No C.31d. Has the building(s) been abated for lead paint? No C.31e. Will children occupy the building(s)? Yes C.31f. Indicate the age range of the children that will occupy the building: 0-18 Page 123 of 444 Printed By: Donna Hawkins on 10/13/2025 16 of 21 D. Funding & Eligible Activities Completed by planning@capslo.org on 10/10/2025 2:56 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 D. Funding & Eligible Activities Please provide the following information. D.1. Total Project Funding (include all Sources and Uses of funding) $675,266.00 D.1.a. Please upload a Sources & Uses document for your proposed project:  Sources and Uses *Required Minor Home Repair Funding Sources and CDBG Allocation.pdf D.1.b. Please upload all Commitment Letters for Funds. Required to demonstrate the 25% HOME matching funds; not required but recommended for all other funding requests.  Commitment Letters for Funds *Required Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf D.1.c. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? There are no maintenance costs associated with this project. The work involves providing home modifications on individual homes. Regarding D.1.a, Sources and Uses, a program breakout of funding sources and CDBG requests is attached. D.1.d. Please upload the 20-Year Pro Forma for the project to demonstrate continued viability and affordability of the project for at least 20 years.  Pro Forma (20-year) *Required Pro Forma form.docx D.2. Are you requesting HOME funds? No D.2.a. Amount of HOME funds requested: $0.00 D.2.b. Proposed number of HOME-assisted (deed-restricted) units: Page 124 of 444 Printed By: Donna Hawkins on 10/13/2025 17 of 21 D.2.c. HOME Matching Funds: Sources Amount $0.00 D.2.d. Identify all eligible activities that apply to the proposed project:  Acquisition  Rehabilitation  Relocation  Demolition  Site Preparation  New Construction  Multi-Family  Single Family D.2.e. Please indicate the number and type of all units CREATED Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 D.2.f. Is your project for REHABILITATION of existing units only? Please indicate the number and type of all EXISTING Units: Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 Please indicate the number and type of all units AFTER rehabilitation Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident Manager 81% and higher AMI Total 0 0 0 0 0 D.3. Are you requesting CDBG funds? Yes D.3.a. Amount of CDBG funds requested: Page 125 of 444 Printed By: Donna Hawkins on 10/13/2025 18 of 21 $545,626.00 D.3.b. Identify all eligible activities that apply to the proposed project:  Acquisitions  Rehabilitation  Demolition  Clearance and Site Preparation - In anticipation of a HOME funded project D.3.c. Are at least 51% of the units in the project designated as low-/moderate-income units? Yes D.3.d. How many new deed-restricted units will be constructed with CDBG funds? 0 D.3.e. Estimated number of unduplicated households to benefit from CDBG funds: Beneficiary Type Estimated Number Unduplicated Households 60 D.3.f. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives. Low Moderate Income LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective. Housing SLUM OR BLIGHT: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight objective D.3.g. Explain how the proposed project meets the selected National Objective: Minor Home Repair provides disabled, elderly, or low-income individuals and families who do not have sufficient resources to make necessary safety- and access-related repairs and/or improvements to their homes. Home repairs include installation of health and safety devices, grab bars, handrails, smoke alarms, carbon monoxide detectors, handheld showerheads, minor plumbing, carpentry, electrical, and drywall. Accessibility-related repairs include widening of entryways and hallways, ramps, wheelchairs lifts, or other larger improvements that are needed to allow access to, from, and inside the home. These critical services allow individuals to remain in their home and avoid costly institutionalization. When screening clients in need, several factors are considered, including health and safety, disability, economic need, and age. In 2023, there were 80,448 persons over age 60; the median age was 70. The county has a larger proportion of seniors over 65 at nearly 22% than the state at 15% or nation at 17%; this has significant repercussions on the county’s economy, housing, and health care systems. Among those over 60, 7.6% (5,987) were below the 100% federal poverty level in 2023. Among those 65 and over, 6.8% (4,067) of the county’s population were in poverty. This does not include seniors under the 200% poverty level. Among those over 60 in the Page 126 of 444 Printed By: Donna Hawkins on 10/13/2025 19 of 21 county, 26.7% had a disability. D.3.h. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “Example Exhibit D - General Conditions” and “Example Exhibit E - Special Conditions”. Yes Page 127 of 444 Printed By: Donna Hawkins on 10/13/2025 20 of 21 E. Supplemental Documents Completed by planning@capslo.org on 10/10/2025 2:26 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 E. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Information EPA Letter of Approval Certification.pdf EPA ApprovalCertificate_NAT-33515-4.pdf Bureau of Household Goods & Services - CAPSLO License.pdf CSLB LIcense - CAPSLO.pdf Page 128 of 444 Printed By: Donna Hawkins on 10/13/2025 21 of 21 Submit Completed by planning@capslo.org on 10/10/2025 2:57 PM Case Id: 30580 Name: Minor Home Repair, Community Action Partnership of San Luis Obispo County, Inc. - 2026 Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds. Authorized Representative Signature Elizabeth "Biz" Steinberg Electronically signed by planning@capslo.org on 10/10/2025 2:57 PM Authorized Representative Title Chief Executive Officer Page 129 of 444 Printed By: David Amini on 10/8/2025 1 of 8 Overview Completed by damini@slocity.org on 10/8/2025 1:54 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401--3219 Overview County of San Luis Obispo Administration and Capacity Building Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 130 of 444 Printed By: David Amini on 10/8/2025 2 of 8 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at www.slocounty.gov/HomelessServicesGrants. All applications must meet the eligibility criteria and requirements set forth in the NOFA. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025. If you have any questions about the applications process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** Cities participating in the Urban County of San Luis Obispo are eligible to apply for funding from the CDBG grant for Administration and/or Capacity Building projects. **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Page 131 of 444 Printed By: David Amini on 10/8/2025 3 of 8 A. Applicant Information Completed by damini@slocity.org on 10/8/2025 2:00 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401---3219 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name City of San Luis Obispo A.2. Type of Organization Government Or Public Entity A.3. UEI Number: For more information, visit SAM.GOV VCUGK243NQ71 A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required Proof of Active SAM.gov Registration - City of SLO.pdf A.4. Address 990 Palm St San Luis Obispo, CA 93401-3219 CONTACT INFORMATION A.5. Contact Person Name David Amini A.5a. Contact Person Title Housing Coordinator A.5b. Phone Number (805) 781-7524 A.5c. Email damini@slocity.org Page 132 of 444 Printed By: David Amini on 10/8/2025 4 of 8 B. Proposed Project & Project Details Completed by damini@slocity.org on 10/8/2025 2:02 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401----3219 B. Proposed Project & Project Details Please provide the following information. B.1. Name of Proposed Project City of San Luis Obispo - Administration B.2. Project/Program Address 990 Palm St San Luis Obispo, CA 93401----3219 B.3. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo B.4. Proposed Project Type - A separate application must be submitted for each project type. Administration (24 CFR 570.206) B.5. Provide a brief narrative of the proposed project and how funds will be used for administration or planning and capacity building. Staff will use CDBG funds for Program Administrative Costs as allowed under § 570.206 of Title 24. Staff will use the method of monitoring the pro rata share of the salary, wages, and related costs of each person whose job includes any program administration assignments. Assignments included in this application include but may not be limited to the following: Providing local officials and citizens with information about the program; Preparing program budgets and schedules, and amendments thereto; Developing systems for assuring compliance with program requirements; Developing interagency agreements and agreements with subrecipients and contractors to carry out program activities; Monitoring program activities for progress and compliance with program requirements; Preparing reports and other documents related to the program for submission to HUD; Coordinating the resolution of audit and monitoring findings; Evaluating program results against stated objectives; and Managing or supervising persons whose primary responsibilities with regard to the program include such assignments. B.6. Please upload your organization's Most Recent Financial Audit. Page 133 of 444 Printed By: David Amini on 10/8/2025 5 of 8  Most Recent Financial Audit *Required Attachment B - Most Recent Audit.pdf B.7. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “CDBG Example Exhibit D-General Conditions ” and “CDBG Example Exhibit E-Special Conditions ”? Yes Page 134 of 444 Printed By: David Amini on 10/8/2025 6 of 8 C. Funding & Eligible Activities Completed by damini@slocity.org on 10/8/2025 2:13 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401-----3219 C. Funding & Eligible Activities Please provide the following information. C.1. Amount of CDBG funds requested: $18,439.50 Page 135 of 444 Printed By: David Amini on 10/8/2025 7 of 8 D. Supplemental Documents Completed by damini@slocity.org on 10/8/2025 2:16 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401------3219 D. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Documentation **No files uploaded Page 136 of 444 Printed By: David Amini on 10/8/2025 8 of 8 Submit Completed by damini@slocity.org on 10/8/2025 2:16 PM Case Id: 30611 Name: City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401-------3219 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. Authorized Representative Signature David Amini Electronically signed by damini@slocity.org on 10/8/2025 2:16 PM Authorized Representative Title Housing Coordinator Page 137 of 444 Printed By: David Amini on 10/8/2025 1 of 8 Overview Completed by damini@slocity.org on 10/8/2025 2:18 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401--3219 Overview County of San Luis Obispo Administration and Capacity Building Program Department of Social Services Adult and Homeless Services Branch PO Box 8119 San Luis Obispo, CA 93403-8119 Page 138 of 444 Printed By: David Amini on 10/8/2025 2 of 8 SS_HomelessGrants@co.slo.ca.us Community Development Block Grant (CDBG) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at www.slocounty.gov/HomelessServicesGrants. All applications must meet the eligibility criteria and requirements set forth in the NOFA. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach. Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025. If you have any questions about the applications process, please contact the Homeless Services Division directly at SS_HomelessGrants@co.slo.ca.us. **************************************** Cities participating in the Urban County of San Luis Obispo are eligible to apply for funding from the CDBG grant for Administration and/or Capacity Building projects. **************************************** Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Page 139 of 444 Printed By: David Amini on 10/8/2025 3 of 8 A. Applicant Information Completed by damini@slocity.org on 10/8/2025 2:23 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401---3219 A. Applicant Information Please provide the following information. PRIMARY APPLICANT INFORMATION-LEAD AGENCY A.1. Organization Name City of San Luis Obispo A.2. Type of Organization Government Or Public Entity A.3. UEI Number: For more information, visit SAM.GOV VCUGK243NQ71 A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required Proof of Active SAM.gov Registration - City of SLO.pdf A.4. Address 990 Palm St San Luis Obispo, CA 93401-3219 CONTACT INFORMATION A.5. Contact Person Name David Amini A.5a. Contact Person Title Housing Coordinator A.5b. Phone Number (805) 781-7524 A.5c. Email damini@slocity.org Page 140 of 444 Printed By: David Amini on 10/8/2025 4 of 8 B. Proposed Project & Project Details Completed by damini@slocity.org on 10/8/2025 2:23 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401----3219 B. Proposed Project & Project Details Please provide the following information. B.1. Name of Proposed Project City of San Luis Obispo Capacity Building B.2. Project/Program Address 990 Palm St San Luis Obispo, CA 93401----3219 B.3. Areas Served-Select all that apply  City of Arroyo Grande  City of Atascadero  City of Morro Bay  City of Paso Robles  City of Pismo Beach  City of San Luis Obispo B.4. Proposed Project Type - A separate application must be submitted for each project type. Planning and Capacity Building (24 CFR 570.205) B.5. Provide a brief narrative of the proposed project and how funds will be used for administration or planning and capacity building. Under this application, staff will continue to implement Program 1.7 from the 6th Cycle Housing Element which directly benefits homeless and low-income individuals by continuing to support local and regional solutions to homelessness by funding supportive programs, services, and housing solutions. Staff will also continue to implement Program 8.11 from the Housing Element which requires the City's Housing Policies and Programs team to continue to provide resources that support local and regional solutions to meet the needs of homeless. Staff will also continue to support, jointly with other agencies, shelters and programs, for the homeless and displaced individuals. These policies are specifically implemented through the City's Homelessness Response Strategic Plan adopted by City Council in 2023. B.6. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required Page 141 of 444 Printed By: David Amini on 10/8/2025 5 of 8 Attachment B - Most Recent Audit.pdf B.7. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “CDBG Example Exhibit D-General Conditions ” and “CDBG Example Exhibit E-Special Conditions ”? Yes Page 142 of 444 Printed By: David Amini on 10/8/2025 6 of 8 C. Funding & Eligible Activities Completed by damini@slocity.org on 10/8/2025 2:24 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401-----3219 C. Funding & Eligible Activities Please provide the following information. C.1. Amount of CDBG funds requested: $18,439.50 Page 143 of 444 Printed By: David Amini on 10/8/2025 7 of 8 D. Supplemental Documents Completed by damini@slocity.org on 10/8/2025 2:24 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401------3219 D. Supplemental Documents Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application. Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application. Documentation Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.  Supplemental Documentation **No files uploaded Page 144 of 444 Printed By: David Amini on 10/8/2025 8 of 8 Submit Completed by damini@slocity.org on 10/8/2025 2:24 PM Case Id: 30612 Name: Capacity Building, City of San Luis Obispo - 2026 Address: 990 Palm St, San Luis Obispo, CA 93401-------3219 Submit Please provide the following information.  The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.  I further certify that the information provided in this Funding Application is correct, accurate, and complete. Authorized Representative Signature David Amini Electronically signed by damini@slocity.org on 10/8/2025 2:24 PM Authorized Representative Title Housing Coordinator Page 145 of 444 Page 146 of 444 B. Draft 2026-27 CDBG Funding Allocations City 2026-27 CDBG Funding Recommended Funding Requested No. Applicant Activity Public Services 1 Community Action Partnership of San Luis Obispo (CAPSLO) CAPSLO Prado Homeless Services Center (Prado HSC) 2026-27 $67,172.00 $79,025.00 2 Peoples' Self- Help Housing Supportive Housing Services $11,853.00 $25,000.00 SUBTOTAL $79,025.00 $104,025.00 Housing and Public Facilities 3 San Luis Obispo Nonprofit Housing Corporation (SLONP) Monterey Family Apartments $0.00* $722,388.00 4 Access Support Network Adriance Court Roofing $70,000.00 $70,000.00 5 CAPSLO Energy Services Minor Home Repair $98,500.00 $98,500.00 SUBTOTAL $168,500.00 $890,888.00 Administration and Capacity Building 6 City of San Luis Obispo CDBG Administration $18,439.50 $18,439.50 7 City of San Luis Obispo Capacity Building $18,439.50 $18,439.50 SUBTOTAL $36,879.00 $36,879.00 TOTAL $284,404.00 $1,031,792.00 *Revised to exchange 2026-27 CDBG funds for funding from prior program years. The 2026-27 exchanged funds in the amount of $173,943 intended for Monterey Family Apartments will be allocated by the County towards the 5 Cities Homeless Coalition Recuperative Care Facility project. The Monterey Family Apartments project will receive prior-year CDBG funds from the County allowing SLONP to close financing in March to meet the tax-credit financing deadline. Page 147 of 444 Page 148 of 444 Item 5d Department: Police Cost Center: 8001 For Agenda of: 2/17/2026 Placement: Consent Estimated Time: N/A FROM: Rick Scott, Police Chief Prepared By: Melissa Ellsworth, Senior Administrative Analyst SUBJECT: AUTHORIZE THE POLICE DEPARTMENT TO SUBMIT A GRANT APPLICATION TO THE OFFICE OF TRAFFIC SAFETY FOR FY 2026-27 AND ADOPT A RESOLUTION AUTHORIZING THE ACCEPTANCE OF FUNDS FOR THE FY 2025-26 TOBACCO GRANT PROGRAM RECOMMENDATION 1. Approve submission of a FY 2026-27 grant application to the California Office of Traffic Safety in an amount not to exceed $180,000. 2. If the grant is awarded, authorize the City Manager and the Chief of Police to execute grant related documents and authorize the Finance Director to make the necessary budget adjustments upon the award of the grant. 3. Approve a resolution titled: “A resolution of the Council of the City of San Luis Obispo, California, authorizing the acceptance of grant funds in the amount of $74,276 from the State of California Department of Justice, Office of Attorney General, Tobacco Grant Program to increase education and enforcement programs focusing on reducing the illegal sale of tobacco products to minors in the city.” (Attachment A) POLICY CONTEXT The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy. The policy states that Council must approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager. DISCUSSION The Police Department (“Department”) utilizes grant funds annually to offset costs associated with focused enforcement activities related to traffic safety, underage drinking and tobacco enforcement. Grant funding is used to pay for officer overtime and related equipment. Page 149 of 444 Item 5d Office of Traffic Safety The California Office of Traffic Safety (OTS) provides annual grant funding to agencies aimed to prevent deaths and injuries on roadways through special enforcement and public awareness efforts. Grant funds help the City’s efforts to improve traffic safety and quality of life in the community. The Department has been awarded funding from the OTS annually for over twenty years. The grant funding is used to conduct numerous operations specifically focused on alcohol or drug impaired drivers. The grant application was due January 30, 2026, and staff submitted the application in late January to meet the quick turnaround deadline. Due to the timing of the grant deadline, the application was submitted prior to Council’s review; however, if Council denies this request, the application can be withdrawn. If awarded, grant funds will be used for overtime costs associated with the following activities: DUI checkpoints, DUI saturation patrols, traffic enforcement, distracted driving, traffic safety education, and pedestrian and bicycle enforcement. Tobacco Grant Resolution On July 15, 2025, Council authorized staff to submit a grant application to the California Department of Justice for a Tobacco related grant program which funds efforts to reduce the illegal sale and marketing of tobacco products to minors. On November 24, 2025, the Department was notified of the grant award and in mid-December, the granting agency hosted a virtual workshop to discuss grant requirements. After the award, the grant requires an approved resolution to authorize the acceptance of grant funds from the State of California. Public Engagement This item is on the agenda for the February 17, 2026, City Council meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting. CONCURRENCE The Director of Finance concurs with staff’s recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA Guidelines Section 15378. FISCAL IMPACT Budgeted: No Budget Year: 2025-26 and 2026-27 Funding Identified: No Fiscal Analysis: Page 150 of 444 Item 5d Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost State Grant – Office of Traffic Safety $180,000 $ $ $ California Department of Justice $74,276 Total $254,276 $ $ $ Matching funds are not required for these grants. The OTS grant runs on a Federal fiscal year, and the Tobacco grant will coincide with the City’s fiscal year. Both grants operate under a reimbursement basis for repayment. ALTERNATIVES Do not submit grant application or decline funding. Grants provide funding for specialized equipment purchases and overtime for targeted education and enforcement opportunities. Without grant funds, the department would not be able to carry out these types of programs which increase safety in our community. ATTACHMENT A - Draft Resolution authorizing the acceptance of grant funds from the State of California Department of Justice Page 151 of 444 Page 152 of 444 R _____ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF GRANT FUNDS IN THE AMOUNT OF $74,276 FROM THE STATE OF CALIFORNIA DEPARTMENT OF JUSTICE, OFFICE OF ATTORNEY GENERAL, TOBACCO GRANT PROGRAM TO INCREASE EDUCATION AND ENFORCEMENT PROGRAMS FOCUSING ON REDUCING THE ILLEGAL SALE OF TOBACCO PRODUCTS TO MINORS IN THE CITY WHEREAS, the San Luis Obispo Police Department (the “Police Department”) through the City of San Luis Obispo desires to undertake programs to increase education and enforcement to focus on reducing illegal sales of tobacco products to minors; and WHEREAS, the City Council authorized the Police Department to submit a grant application through the California Department of Justice for the Tobacco Grant Program on July 15, 2025, to conduct enforcement activities to reduce illegal sales and marketing of tobacco products to minors; and WHEREAS, in November 2025, the Police Department was notified of the Tobacco Grant award in the amount of $74,276; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Manager or Chief of Police is hereby authorized to accept grant funding in the amount of $74,276 from the State of California DOJ. SECTION 2. The City Manager or Chief of Police is hereby authorized to execute the grant documents and to submit all documents including without limitation, contracts, amendments, extensions and payment requests as appropriate to accept the funds under and comply with the conditions of the grant. SECTION 3. The Finance Director is authorized to make the necessary budget adjustments upon the award of the grant. SECTION 4. Grant funds received hereunder shall not be used to supplant expenditures controlled by this body. Upon motion of __________________, seconded by___________________, and on the following roll call vote: AYES: NOES: Page 153 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ ABSENT: The foregoing resolution was adopted this ______day of _____________2026. __________________________ Mayor Erica Stewart ATTEST: ____________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ____________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. __________________________ Teresa Purrington City Clerk Page 154 of 444 Item 5e Department: Information Technology Cost Center: 1101 For Agenda of: 2/17/2026 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Josh Erquiaga, Information Technology Manager SUBJECT: AUTHORIZATION TO EXECUTE A CONTRACT FOR 911 CALL HANDLING EQUIPMENT AND SERVICES RECOMMENDATION 1. Authorize the City Manager to execute a five-year contract with AT&T for 911 call handling equipment and services; and 2. Waive formal bids and authorize use of California Department of Technology Agreement 6138-2020 (Attachment A) to procure this purchase as allowed under 03.24.060E of the City of San Luis Obispo Municipal Code. POLICY CONTEXT Per the Purchasing Policy, purchases greater than $150,000 (professional services) and $200,000 (general goods) must come before City Council for approval. Waiving formal bids and authorizing the use of California Department of Technology Agreement 6138 - 2020 (Attachment B) to procure this purchase is consistent with City Purchasing Policy, Section 204: No-Bid Purchasing, and Municipal Code Section 03.24.060E, which permits staff to dispense with bidding requirements, “when the purchase will be made cooperatively with one, or more, other units of government, or from a local dealer within the city limit that can provide the same brand, model and configuration of item(s) identified in the cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions.” DISCUSSION Background The City of San Luis Obispo maintains a Public Safety Answering Point (PSAP) at the Emergency Communications Center (ECC), which is co-located with Fire Station 1. The PSAP is responsible for handling all 911 emergency calls for service within the City lim its and for transferring all calls for other agencies to those agencies (e.g., a misrouted call from a cell phone in another jurisdiction). For the last five full years, 2020 through 2024, the ECC has handled an average of 105,169 calls annually, including: Page 155 of 444 Item 5e  52,655 - Non-emergency calls into the ECC  28,135 - 911/emergency calls into the ECC  20,433 - Outbound calls from the ECC  2,926 - Abandoned calls into the ECC  105,169 - total calls through the ECC annually These averages reflect a broad range of both emergency and non-emergency calls received from the public. This includes traditional 911 calls requesting police, fire, and medical assistance, as well as non-emergency requests for public safety services, alarm company notifications, and interagency coordination during large-scale incidents. In addition, the ECC serves as a point of contact for community members seeking assistance when they are unsure where else to direct their call. The outbound calls represent many different call types:  Requests from field units to the ECC to place calls on their behalf while handling incidents in the field.  Trying to reach abandoned calls in to the ECC.  The ECC calling third-party vendors for translation services. Handling the volume of calls and the requests that result requires specialized systems to receive calls, along with location information and other metadata used to dispatch the appropriate resources and track those calls until they are closed. The State of California’s Office of Emergency Services (CalOES), through the California Department of Technology (CDT), has negotiated with vendors to provide these systems to PSAPs. In addition, CalOES provides funding to local PSAPs, based on their emergency call volume, to acquire these systems. CalOES has allocated $490,000 to the City of San Luis Obispo to acquire upgraded systems for its emergency call-handling needs. In addition to State funds, the City proactively funds 911 upgrade projects through the Information Technology Capital Improvement Program (IT CIP). IT CIP funds are programmed in case State funding is reduced between upgrade cycles, or the State formula doesn’t fully provide for the equipment necessary to fulfill the City’s operational needs. The City last updated its 911 call-handling equipment in 2015. Normally, 911 call-handling equipment is replaced every five to seven years. The City’s systems were eligible for upgrade in 2022, but the upgrades were postponed by the State as it was in the middle of its initial attempt to roll out a state-wide Next Generation 911 program. Due to delays in the statewide roll-out of that program and the age of the City’s systems, CalOES authorized upgrading the existing systems at this time. City staff recommend that the Council authorize the contract with AT&T to purchase its VIPER call-handling equipment and services, along with transcription and translation services (identified as “New technology integration” in Attachment D). The new transcription and translation services are built into the software and allow Dispatchers to better serve callers who may not speak English fluently. Because these services are built Page 156 of 444 Item 5e into the software, they can be used immediately to address a caller's emergency request while an official translation request is submitted, allowing for a quicker emergency response. Currently, Dispatchers rely on a third-party contractor to provide translation services, which results in much slower responses to emergencies, as well as limited information being received by the ECC due to the time it takes to manually translate those calls. Additionally, the current translation service used by the ECC typically provides only Spanish translation. Right now, when dispatch receives an emergency call from any other language, it takes around 10 minutes to find a translator. Viper, integrated with translation, currently supports over 40 languages, which allows Dispatchers to converse seamlessly with callers who speak different languages in real time without the need for a third-party contractor. The current third-party translation contractor is provided by the State at no charge to PSAPs, so there is no savings to the City if they do not use the third-party translation service. The State funding contribution will fully cover the equipment purchase; however, the City will need to pay for the transcription and translation services . The cost for the additional services is $113,342. Staff recommend using the IT CIP project funds to increase the total available funding to accommodate the purchase of both the hardware and the transcription and translation services. Previous Council or Advisory Body Action The City Council last approved an upgrade of the 911 call-handling equipment at the October 6, 2015 City Council meeting as part of the consent agenda (Item 8). Public Engagement This item is on the agenda for the February 17, 2026, City Council meeting and will follow all the required posting and notification. The public may comment on this item at or before the meeting. CONCURRENCE City Information Technology staff have worked closely with the Police Department on this project and agree with the recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Page 157 of 444 Item 5e Fiscal Analysis: 911 Phone System, Project # 2000601-01 Project #2000601-01 $172,345 $490,000 Project Total Costs Funding Source* InfoTech Repl - LRM CalOES Fund # 403 AT&T $113,342 $490,000 $603,342 Contingencies $0 $0 $0 Total for Construction $113,342 $490,000 $603,342 Construction Management: $0 $0 $0 Materials Testing: $0 $0 $0 Public Relations: $0 $0 $0 Printing: $0 $0 $0 Total Project Cost $113,342 $490,000 $603,342 Current Project Balance: $172,345 $490,000 $662,345 Additional Funding: $0 $0 $0 Post Project Remaining Balance: $59,003 $0 $59,003 The main funding for this project is the $490,000 allotment from CalOES. CalOES will pay AT&T directly based on the attached quote (Attachment C), so no funding will pass through the City. If the City opts to move forward with the purchase of the additional translation and transcription quote (Attachment D), the City would fund the remaining $113,342 from the budgeted CIP Project # 2000601-01, 911 Phone System. The 911 Phone System project was originally funded in FY 2021-22 based on the expected replacement lifecycle of the 911 call handling equipment but was delayed due to changes at the State level with the state-wide 911 system. This project funding would be expended in the current fiscal year in support of this request. ALTERNATIVES 1. Council could decide not to authorize the additional new technology services. Should Council choose this option, the City would receive new call -handling equipment but would not have access to new translation and transcription technologies. 2. Council could decide not to award the contract to AT&T. Should the Council choose this option, City staff would need to work with CalOES to identify other approved vendors of 911 call-handling equipment to implement. Bringing in a new vendor would add additional cost and time to the project and could require extensive retraining of Dispatch staff to learn a new call handling system. 3. Council could decide not to award the contract using the California Department of Technology contract. Should the Council choose this option, City staff would need to run a new procurement process to acquire new call handling equipment and Page 158 of 444 Item 5e services. Given the size of the State contract and its purchasing power, it is unlikely that the City of San Luis Obispo would be able to negotiate a more favorable contract. 4. Council could decide not to award the contract. Should the Council choose this option, the City would not update its 911 call handling equipment. This would leave the City vulnerable to failures of its 911 system and its ability to take emergency calls from the public. Service and support for the current system will expire in June 2026, and AT&T is unlikely to renew those contracts due to the system's age . ATTACHMENTS A – Cal OES Allotment Letter.pdf B – California Department of Technology Agreement 6138-2020.pdf C – SLO PD – ATT VIPER Hardware and Services Quote.pdf D – SLO PD – ATT VIPER Translation and Transcription Quote.pdf Page 159 of 444 Page 160 of 444 GAVIN NEWSOM GOVERNOR NANCY WARD DIRECTOR 601 SEQUOIA PACIFIC BLVD, SACRAMENTO, CA 95811 PUBLIC SAFETY COMMUNICATIONS (916) 894-5007 TELEPHONE July 30, 2025 Tracking Number: 25309 Joshua Erquiaga, Information Technology Manager City of San Luis Obispo Police Department 1135 Roundhouse St. San Luis Obispo, CA 93401 Subject: Customer Premise Equipment (CPE) Fixed Allotment Funding – On Premise Solution Dear Joshua Erquiaga: The California 9-1-1 Emergency Communications Branch (CA 9-1-1 Branch) has received your Advance Notification for Call Processing Equipment (CPE) Funding letter of intent to replace the 9-1-1 system at your Public Safety Answering Point (PSAP). Acceptance of CPE Allotment funds from the CA 9-1-1 Branch commits your agency to PSAP operations 24 hours-a-day, seven days-a-week, for a minimum of five years. If PSAP operations are not maintained at that level, the City of San Luis Obispo Police Department may become financially responsible for all subsequent CPE maintenance and 9 -1-1 network service charges. Our evaluation of recent 9-1-1 emergency call volume qualifies the City of San Luis Obispo Police Department for a Fixed Allotment of $490,000 to be used to purchase an on premise solution. The Fixed Allotment funding will expire upon expiration/cancellation of the current MPA if your CPE approval process has not been initiated. The CA 9-1-1 Branch has implemented a non-mandatory Master Purchase Agreement (MPA) that enables participating vendors to invoice the CA 9-1-1 Branch directly for the purchase of 9-1-1 systems and services. Price lists are available at: https://www.caloes.ca.gov/office-of-the-director/operations/logistics-management/public- safety-communications/ca-9-1-1-emergency-communications-branch/ca-911-services- contracts/ The CA 9-1-1 Branch CPE Funding Policy and Funding Processes are detailed in the 9-1-1 Operations Manual – Chapter III available at: https://www.caloes.ca.gov/office-of-the-director/operations/logistics-management/public- safety-communications/ca-9-1-1-emergency-communications-branch/ca-911-operations- manual/ Please contact me directly with any questions at johndiaz@caloes.ca.gov or (916) 894-5176. Sincerely, John Diaz, 9-1-1 Advisor CA 9-1-1 Emergency Communications Branch Docusign Envelope ID: 5B26F8D4-732D-470F-BF24-7C8E23EA703E Page 161 of 444 Page 162 of 444 REGISTRATION NUMBER AGREEMENT NUMBER AMENDMENT NUMBER 6138-2020 3 1.This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME California Governor’s Office of Emergency Services CONTRACTOR NAME AT&T Enterprises, LLC, successor in interest to AT&T Corp. 2.The term of this Agreement is: July 10, 2020, or upon approval by CDT STP, whichever is later, through July 9, 2026, with two (2) two-year options to extend 3.The maximum amount of this Agreement after this Amendment is: $0.00 (Zero Dollars and Zero Cents) 4.The parties agree to comply with the terms and conditions of this Agreement Amendment #3 for the NG 9-1-1 CLOUD NATIVE OR DATA CENTER CALL PROCESSING EQUIPMENT (CPE) for the California Governor’s Office of Emergency Services (Cal OES) to add On-Premises CPE. All documents and actions noted below are by this reference made part of the Agreement and incorporated herein: ACTIONS: Amendment #3 – Both parties mutually agree to amend this Agreement as followed: a. Exhibit A, Statement of Work (SOW), attached hereto, replaces the original Exhibit A, Statement of Work (SOW) in its entirety. b. Exhibit 21, Technical Requirements, attached hereto, replaces the original Exhibit 21, Technical Requirements in its entirety. c. Exhibit 22, Cost Workbook, attached hereto, replaces the original Exhibit 22, Cost Workbook, in its entirety. All other terms and conditions shall remain the same. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. Department of Technology (CDT), Statewide Technology Procurement (STP) Use OnlyCONTRACTOR CONTRACTOR NAME (If other than an individual, state whether a corporation, partnership, etc.) AT&T Enterprises, LLC, successor in interest to AT&T Corp. CONTRACTOR AUTHORIZED SIGNATURE DATE SIGNED PRINTED NAME AND TITLE OF PERSON SIGNING Samantha Thibault, Sales Director ADDRESS 1452 Edinger Ave., Tustin, CA 92780 STATE OF CALIFORNIA CONTRACTING AGENCY NAME California Governor’s Office of Emergency Services CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED EXEMPT PER: PRINTED NAME AND TITLE OF PERSON SIGNING Mary Rucker, Assistant Director, Finance and Logistics Administration CONTRACTING AGENCY ADDRESS 3650 Schriever Avenue, Mather, CA 95655 STATE OF CALIFORNIA DEPARTMENT OF TECHNOLOGY STATEWIDE TECHNOLOGY PROCUREMENT STANDARD AGREEMENT AMENDMENT TECH 213A (rev. 06/2020) Page 163 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 1 of 49 March 26, 2020 EXHIBIT A, STATEMENT OF WORK 1 BACKGROUND AND PURPOSE The Governor’s Office of Emergency Services (Cal OES), Public Safety Communications, CA 9-1-1 Emergency Communications Branch (CA 9-1-1 Branch) is authorized by statute Government Code (GC) Sections 53100-53121 to manage and oversee the statewide 9-1-1 emergency communications system. The authority to oversee the expenditures of State Emergency Telephone Number Account (SETNA) funds is provided in the California Department of Finance’s Manual of State Funds, 0022. The CA 9-1-1 Branch is responsible for administering the SETNA which provides funding to California Public Safety Answering Points (PSAPs) for 9-1-1 systems and services. The main function of the 9-1-1 Call Processing Equipment (CPE) is to provide PSAPs with call handling equipment to answer the 9-1-1 calls. The Next Generation 9-1-1(NG9-1-1) services in California follow the National Emergency Number Association (NENA) i3 Call Flow per Figure 1 in NENA-STA-010.2-2016 https://cdn.ymaws.com/www.nena.org/resource/resmgr/standards/NENA-STA- 010.2_i3_Architectu.pdf NENA Detailed Functional and Interface Standards for the NENA i3 Solution. Each CPE provider shall provide NENA i3 call flow to support interoperability with the Prime Network Service Provider (PNSP) and Regional Network Service Provider (RNSP). The CPE solution shall follow the National Emergency Number Association (NENA) i3 Call Flow per NENA-STA-010.2-2016, NENA Detailed Functional and Interface Standards for the NENA i3 Solution. The CPE solution shall utilize the NG 9-1-1 trunks maintained by PNSP and RNSP to deliver all 9-1-1 traffic to the PSAP. The NG 9-1-1 trunks are a CPUC tariffed service that are maintained by PNSP and RNSP. Figure 1 provides an overview of the NG 9-1-1 traffic flow and identifies the responsibility of PNSP, RNSP, and the CPE provider. Page 164 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 2 of 49 March 26, 2020 FIGURE 1: NG 9-1-1 TRAFFIC RESPONSIBILITY (CLOUD/DATA CENTER) Additional resource documents for reference: CA 9-1-1 Branch Operations Manual - https://www.caloes.ca.gov/cal-oes- divisions/public-safety-communications/ca-9-1-1-emergency-communications- branch/ca-9-1-1-operations-manual 1.1 OBJECTIVE This Statement of Work (SOW) establishes the Master Purchase Agreement that shall be used by every PSAP in California to procure CPE that utilizes both CAMA and PSNP and RNSP NG 9-1-1 Trunks to deliver 9-1-1 traffic to every PSAP. This SOW shall serve as the rules and regulations between the CA 9-1-1 Branch and the Contractor to provide native cloud and data center CPE as well as on-premises CPE. This SOW will also establish a standard CPE platform that complies with NENA i3, interfaces with the PNSP and RNSP networks and aligns with the authorized Cal OES Budget for 9-1-1 services. Cal OES, CA 9-1-1 Branch will oversee and approve all purchases made under this agreement. The PSAPs will use this agreement to purchase 9-1-1 CPE Systems with SETNA funding as authorized and approved by the CA 9-1-1 Branch. Page 165 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 3 of 49 March 26, 2020 2 DESCRIPTION OF PROPOSED SERVICE 2.1 CLOUD BASED/DATA CENTER MODEL SERVICE TO BE PROVIDED The Contractor agrees to provide CPE services in accordance with the SOW and EXHIBIT 21, TECHNICAL REQUIREMENTS. The Contractor agrees that CPE shall support all call handling and call flow elements of NENA i3. Any proprietary components that are implemented within the CPE shall not compromise the ability to support NENA i3 and the ability for the PNSP or RNSP to deliver the call to the PSAP, or to support transfers from one PSAP to another, regardless of Contractor. CPE services to be provided shall include, but are not limited to: 1) This solution shall be an Evergreen Native Cloud based or Data Center based service. Contractors shall not provide a Hosted CPE solution that exists in the current legacy environment. 2) Contractor shall provide solutions to the PSAPs that have been tested in the CA 9-1-1 Branch NG911 Lab and validated by the CA 9-1-1 Branch to ensure interoperability with PNSP and RNSP; 3) Contractor shall provide CPE performance monitoring and provide access to PSAPs and the CA 9-1-1 Branch through a dashboard; 4) Contractor shall be solely responsible for trouble ticket reporting for all CPE services to include subcontractor services. The Contractor shall develop and maintain trouble ticket e-bonding with RNSP and PNSP trouble ticketing. Trouble ticket information and status updates must be pushed and received by all parties in order to reduce confusion and to allow a single point of reference, no matter which vendor the PSAP chooses to call; 5) Contractor shall implement standards and best practices as determined by the CA 9-1-1 Branch to ensure global interoperability; 6) Contractor shall provide leadership to promote collaborative mission focused, implementation that supports interoperability and supports the Cal OES mission; 7) Contractor shall provide a lead team member to work together to maintain the interoperability interface with PNSP and RNSP; 8) Contractor shall ensure that installation of equipment includes all hardware, cabling, labor, software and configuration required to deliver and make the system ready for use, and operational with the manufacturer’s published specifications; 9) Contractor’s Evergreen coverage shall include maintenance and replacement of all system components, including but not limited to all workstations, interface devices, and associated hardware; 10) Contractor shall designate a primary contact person located in the continental United States (CONUS) to whom all project communications may be addressed and who has the authority to act on all aspects of the services; Page 166 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 4 of 49 March 26, 2020 11) Contractor shall notify the CA 9-1-1 Branch, in writing, of all changes in the personnel assigned to the tasks. If a Contractor employee is unable to perform due to illness, resignation, or other factors beyond the Contractor’s control, the Contractor will provide suitable substitute personnel; 12) Contractor shall install workstation and any peripheral hardware on the premises of the PSAP, during the best available hours for the PSAP, and at all other times as required to successfully provide the services; 13) Contractor shall provide the PSAP and the CA 9-1-1 Branch with a copy of the system update process and schedule; 14) Contractor shall work closely with PSAPs regarding any of the additional applications provided under Contract and adhere to any changes and future time-frames listed in the individual requirements; 15) Contractor shall ensure PSAP has unrestricted use of any CPE solution software that is proprietary in nature; 16) Contractor shall submit a system diagram, depicting data flow and interconnection requirements; 17) Contractor shall be responsible for all the terms and conditions of this Contract regardless of whether or not a failure occurs in their system or their Subcontractors system; 18) Contractor shall implement all functional requirements included in Exhibit 21; 19) The Contractor agrees to provide CAMA integration CPE services in accordance with this Amendment 1 that includes the Technical Requirements and Cost Elements needed to support the CAMA interface. These requirements are mandatory and shall be part of the CPE solution and will be tested in the CA 9-1-1 Branch lab and accepted by Cal OES 9-1-1 Branch, prior to issuing SOW to the PSAP for CPE purchase. Amended CPE services to be provided shall include, but are not limited to: a. The CPE solution shall interface with CAMA according to the additional technical requirements as per Exhibit 21 - Technical Requirements (See section B for details). b. The amended CPE solution shall provide an interface with CAMA according to the additional cost elements as per Exhibit 22 – Cost Workbook. There will be no additional costs for maintaining, servicing, or disconnecting the CAMA (See section C for details). 2.2 ON PREMISES SERVICE TO BE PROVIDED The Contractor agrees to provide the on-premises CPE solution that passed the Cal OES 9-1-1 lab testing at the rates listed on the Exhibit 22 – Cost Workbook. Administrative Page 167 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 5 of 49 March 26, 2020 requirements and SLAs posted within this SOW apply to both on-premises and cloud- based call-handling unless designated otherwise by the CA 9-1-1 Branch. 2.3 CPE SERVICES ENVIRONMENT This section is intended to present an overview of the NG9-1-1 environment in California. The PNSP and RNSP are responsible for delivering NG 9-1-1 traffic to the CPE provider based on the PSAP that has been identified to receive the 9-1-1 information. The Contractor shall be responsible for receiving the 9-1-1 traffic from the legacy 9-1-1 network and the PNSP or RNSP. The Contractor shall also provide the call processing functionality required to display any and all 9-1-1 information at the PSAP. 2.4 COMMERCIALLY AVAILABLE HARDWARE Wherever possible, commercially available hardware shall be used for simplicity, ease of maintenance, replacements, and upgrades. 3 CONTRACT TERM Effective upon approval of the California Department of Technology (CDT), Office of Statewide Technology Procurement (OSTP), the term of the Contract is four (4) years with three (3) two (2) year options. The CA 9-1-1 Branch at its sole discretion, may exercise the option to execute, three (3), two (2) year extensions of all services identified in this Contract at the costs identified in EXHIBIT 22, COST WORKBOOK, for a maximum Contract term of ten (10) years. Contractor shall provide an all-inclusive cloud-based /data-center based or on- premises CPE solution. All options shall be included with the ability to de-activate or ‘turn off’ options or features based on PSAP needs and requirements. Vendor shall not provide options that result in tiered service. Amendments may occur at any time, consistent with the Terms and Conditions of the Multiple Award Contract and by mutual consent of both parties, subject to approval by the CA 9-1-1 Branch. Period of performance for a PSAP’s CPE purchase will continue for the life of the Contract, including all extensions. Evergreen coverage for all systems and services, excluding network, shall be included. Coverage starts from the date of system acceptance. The Contractor shall adhere to this Period of Performance for up five (5) years, if necessary, after the multiple award Contract term expires All price quotes/SOWs must be received by the CA 9-1-1 Branch at a minimum of four (4) weeks prior to the Multiple Award Contract expiration to allow time for review, revision, and issuance of a TD-288 Commitment to Fund. No quotes or SOWs will be accepted and processed within this four (4) week period. Page 168 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 6 of 49 March 26, 2020 PSAP is required to hold CPE service for a minimum of five (5) years unless Contract is terminated due to a proven failure to perform. After year five (5), if the PSAP chooses to continue the CPE maintenance, it will be approved by Cal OES on a year-to-year basis, for up to 2 years. The PSAP may cancel the service during those 2 years at any time with 30 days written notice to the CPE Provider. After the multiple award Contract expiration date, new orders shall not be issued and are prohibited. The terms of this Contract shall be incorporated into the SOW with the PSAP and survive the expiration of the term noted above until the expiration of the affected PSAP’s SOW. For the purposes of Section 20 of SaaS General Provisions limited liability, purchase price will be defined as the Contractor’s aggregate Monthly Recurring Charges (MRC) contract amount for the affected solution and PSAP(s) for the previous twelve months prior to the incident. 3.1 CONTRACT COMMENCEMENT TIME The Contractor shall not be authorized to deliver goods or commence the performance of services as described in this SOW until written approval has been obtained from all entities and CPE testing at the PSAP has been completed. Any delivery or performance that is commenced prior to the signing of the multiple award Contract shall be considered voluntary on the part of the Contractor and non-compensable. 3.2 CONTRACT AMENDMENTS This Contract may be amended, consistent with the terms and conditions of the Contract and by mutual consent of both parties and is subject to approval by the California Department of Technology (CDT). No contract amendment shall be executed to allow adding a CPE solution that did not pass the CAL OES NG 9-1-1 Lab validation testing. 3.3 CONTRACT TERMINATION The CA 9-1-1 Branch may exercise its option to terminate the Agreement at any time with 30 calendar days prior written notice. In the event of such termination, the CA 9-1-1 Branch shall pay all amounts due the Contractor for all deliverables accepted prior to termination. 3.4 CAL OES NG911 LAB CPE TESTING All CPE shall be tested in the CA 9-1-1 Branch NG 9-1-1 Lab to validate compliance to NENA i3 standard and meeting the functional requirements identified in this SOW (refer to TD 284 System Acceptance and Authorization Form for Cloud CPE Solution as well as TD 284 System Acceptance and Authorization Form for On-Premises CPE Solution). All CPE (cloud based and on-premises) shall be validated in the CA 9-1-1 Branch NG 9-1-1 Lab. If the call handling is not Nena i3 compliant at the time of NG go-live, the Page 169 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 7 of 49 March 26, 2020 Contractor will be provided 6 months to bring the call handling into compliance, at no cost to the State of California. 4 ORDERING AND DELIVERY PROCESS The ordering process that the CA 9-1-1 Branch uses is detailed in the 9-1-1 Operations Manual, Chapter III, Funding which can be viewed at: https://www.caloes.ca.gov/wp-content/uploads/PSC/Documents/Operations-Manual- Chapter-III-Updated-6.24.pdf 4.1 PERFORMANCE BOND AT PSAP OR CAL OES REQUEST If requested by the PSAP or Cal OES, the Contractor shall furnish to the Cal OES, a performance bond security in a form satisfactory to the 9-1-1 Branch Manager at no cost to the State, a Performance Bond in the amount of PSAP or Cal OES request for the CPE provider. The bond shall be on a form from an admitted surety insurer and must guarantee Contractor’s compliance with the terms of this Contract. The bond shall be in effect for the duration required by the PSAP or Cal OES. Failure to submit the required documents may be cause for termination of the Contract. 4.2 9-1-1 CPE SYSTEM DIAGRAMS As part of the ordering process for the 9-1-1 CPE System, the SOW submitted to the PSAPs shall include system diagrams using Microsoft Visio or similar to depict: 1. System connectivity 2. 9-1-1 traffic and data flow 3. PC hardware Requirements 4. Interfaces to any PSAP auxiliary equipment (i.e. CAD, logging recorder) 4.3 9-1-1 CPE INSTALLATION (CLOUD AND ON-PREMISES) Orders from the PSAP must be completely installed and ready for acceptance testing within 90 calendar days after TD-288 is issued for cloud or data center CPE and 180 days for on-premises CPE. The installation date may be changed by mutual consent of the Contractor and the PSAP; however, the system installation schedule must be updated with the revised dates. The Contractor will provide a revised Contractor’s SOW to the PSAP and to the CA 9-1-1 Branch. Page 170 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 8 of 49 March 26, 2020 4.4 PSAP SITE SURVEY As part of the SOW for the PSAP, the Contractor shall prepare a list detailing the current electrical power, common ground, and environmental control facilities at the PSAP. The Contractor shall review and comment on the adequacy of the PSAP’s facility, including but not limited to, the adequacy of the floor plan, environmental control, cabling, and NG9-1-1 trunk demarcation to support the installation of the 9-1-1 system. The PSAP shall permit free access, subject to security restrictions at the site, for the purpose of reviewing facility readiness. 4.5 PSAP SITE MODIFICATIONS If required, the CA 9-1-1 Branch and/or PSAP will discuss the needs for PSAP modification in order to meet the Contractor’s specifications related to CPE installations. 4.6 CERTIFICATION OF EQUIPMENT READINESS Equipment must be installed and certified ready for acceptance testing by the agreed to installation date and acceptance test plan between the Contractor and PSAP. 4.7 RELOCATION Relocation refers to a PSAP moving to a different location on a long-term basis. This includes packing up all CPE and associated equipment purchased under this Contract and transporting to another location and reinstalling it for operational use 1. If it is necessary to move the equipment purchased under this Contract from a PSAP location to another, the PSAP will provide their date of disconnection, the locations from and to where the equipment is to be moved, and the re- connection date to the Contractor. The Contractor and PSAP will mutually agree on a reasonable amount of time to accomplish disconnection, relocation, reconnection and having the equipment ready for use. The CA 9-1-1 Branch will only pay for 30 days of overlapping NG9-1-1 trunk costs. After 30 days is exceeded, billing from vacated PSAP premises will be transferred and become the responsibility of the PSAP. 2. The PSAP will pay the Contractor for all reasonable costs for relocation. The Contractor shall maintain responsibility for the equipment at all times during the move. 3. In the case of an emergency PSAP CPE relocation, the CA 9-1-1 Branch will pay for all associated costs. Emergency shall consist of, but is not limited to: force majeure, man-made disasters, hazard to life and limb of PSAP personnel. Page 171 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 9 of 49 March 26, 2020 4. Rearrangement of equipment at a single site or for the convenience of the PSAP, shall be at the PSAP’s expense. If the Contractor is asked to move and reinstall equipment at a different facility, the Contractor shall not exceed the hourly Labor Rate bid in Exhibit 22, COST WORKBOOK. 4.8 MOVES, ADDS AND CHANGES (MACS) MACs refer to changes in system application configurations to facilitate PSAP operations, moving equipment from one location to another in the same facility, or adding additional equipment to completed installations. 1. For those MACs that are performed, such as adding or deleting new workstations, changing speed dial numbers, etc., the Contractor shall provide training to the PSAP System Administrator if required. 2. Contractor shall detail the process for the PSAP to request routine MACs, how the Contractor will perform on-site versus off-site MACs and the anticipated turn- around time to completion. 3. All costs for MACs will be directly billed to and paid by the PSAP, not to exceed the hour labor rate bid in Exhibit 22, COST WORKBOOK. If the Contractor is asked to move and reinstall equipment at a different facility, the labor rates established by this Contract will apply to similar activities performed, such as those described above. 4.9 DOCUMENTATION Contractor shall provide SOW in a format that complies with the template provided in SOW Attachment 3 Sample SOW Template. Contractor shall provide softcopy of all manuals and materials as well as web access to updates. 4.10 EQUIPMENT DELIVERY AND SHIPMENT 1. Shipments to and from the installation site shall be the responsibility of the Contractor. 2. Equipment shall be packed and marked with content description and destination. 3. The Contractor shall bear the cost of transportation/shipping whenever equipment is shipped or moved for mechanical replacement purposes. 4. The Contractor shall dispose of any packing material and debris. Post installation, the Contractor shall pay transportation charges for the removal of empty packing cases. Page 172 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 10 of 49 March 26, 2020 5. The PSAP reserves the option, with concurrence from the Contractor, to arrange and pay for all transportation/shipping charges for such relocation. Subsequent moves are not paid for by the CA 9-1-1 Branch, but may be negotiated between PSAP and Contractor, when the equipment is moved from one PSAP location to another. 6. The PSAP shall be relieved from all risk of loss or damage to the equipment purchased under this Contract during the entire time the equipment is in the possession of the Contractor, except when such loss or damage is due to the fault or negligence of the PSAP. Loss or damage not due to the fault or negligence of the PSAP shall be verified through a legal claims record. 5 CONTRACT CONTACTS The project representatives during the term of this Contract will be: The CA 9-1-1 Branch contact will be the primary interface with the Contractor. State: Governor’s Office of Emergency Services, Public Safety Communications, CA 9-1-1 Branch Contractor: AT&T Name: Janee Dabrowski Name: Jonathan Holland Address: 601 Sequoia Pacific Blvd. MS 911, Sacramento, CA 95811 Address: 1452 Edinger Ave, Tustin CA 92780 Phone: (916) 894-5031 Phone: (949) 202-6890 e-mail: janee.dabrowski@caloes.ca.gov e-mail: jh2419@att.com Direct all Contract inquiries to: State: Governor’s Office of Emergency Services, Information Technology Division Contractor: AT&T Name: Cheng Xiong Name: Jonathan Holland Address:3650 Schriever Ave Mather, CA 95655 Address: 1452 Edinger Ave, Tustin CA 92780 Phone: (916) 636-3655 Phone: (949) 202-6890 e-mail:Cheng.Xiong@caloes.ca.gov e-mail:jh2419@att.com 6 EVERGREEN TECHNICAL REQUIREMENTS All requirements, as stated in EXHIBIT 21, TECHNICAL REQUIREMENTS are part of this SOW. CPE offering shall be maintained in good operating condition at the PSAP location, the Page 173 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 11 of 49 March 26, 2020 Contractor’s data center, or in the cloud to ensure Continuing Standards of Performance are met. 6.1 LOCAL HARDWARE The Contractor shall provide maintenance (labor and parts) and keep all equipment at the PSAP in good operating condition. Maintenance parts will be furnished by the Contractor and will be new. Contractor is responsible for disposal of replaced parts removed during maintenance. The Contractor shall furnish and replace all evergreen services and parts for a period of five (5) years beginning on the first day following System Acceptance. Any such service required as a result of erroneous site preparation specifications furnished by the Contractor or otherwise required due to the fault or negligence of the Contractor, shall be provided by the Contractor at no additional charge. Prior to the expiration of the evergreen service period, whenever equipment is shipped for mechanical replacement purposes, the Contractor shall bear all costs for such shipment including, but not limited to, costs for packing, transport, handling, and insurance. On site services will be furnished by the Contractor’s nearest service location. The Contractor shall have prompt access to the equipment, subject to the PSAP’s standard security requirements, to perform this service. There shall be no charge for travel expenses associated with services for which the Contractor is responsible. Contractor shall provide full maintenance coverage 24 hours per day, seven (7) days per week, 365 days a year (24x7x365). 6.2 UPGRADES AND PLANNED MAINTENANCE DOWN-TIME The proposed 9-1-1 CPE Systems shall not experience any downtime for planned maintenance. It is acceptable that individual workstations have downtime for planned maintenance, however, PSAPs will have input into the update schedule such that no more than 50% of their workstations are updated at the same time. 6.3 PLANNED MAINTENANCE Planned maintenance shall be performed in accordance with a Standard Operating Procedure (SOP) mutually agreed to by the State and Contractor designed to mitigate the operational impact of such maintenance. Scheduled downtime must be coordinated with the CA 9-1-1 Branch and affected PSAPs with at least five (5) business days advance notice prior to performing the scheduled downtime in order for the downtime not to be calculated into the monthly availability. Page 174 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 12 of 49 March 26, 2020 Contractors shall disclose any service impact, limitation, or operational issue that may arise as a consequence of planned maintenance and shall propose mitigation for the known impact, limitations, or operational issues as part of the SOP. 6.4 REMEDIAL MAINTENANCE Contractors shall track the status of each Critical, Major, and Minor Failure (as defined in SLA) through the Trouble Ticket Log. Contractors shall provide the telephone number of their customer support center to each PSAP with whom they have an evergreen Contract for reporting Critical, Major, and Minor Failures. The Contractor’s customer support center telephone shall be answered 24 hours a day, seven (7) days a week by a live person. The Contractor’s customer support center will be responsible for coordinating the resources necessary to correct Critical, Major, and Minor Failures and for accurately updating the Trouble Ticket Log. 6.5 RNSP/PNSP REPAIRS If the PSAP notifies the Contractor of a problem with the 9-1-1 system and the Contractor determines that the problem lies with the PNSP/RNSP NG9-1-1 Trunks, the Contractor, will be responsible for notifying the PSAPs that the problem lies with the PNSP/RNSP. All Contractors are required to e-bond ticketing systems with PNSP/RNSP. 6.6 REPLACEMENT PARTS The spare components and parts inventory shall include all components included in CPE solution. This is including but not limited to workstations, controllers, servers, gateways, routers, Uninterruptable Power Supply (UPS) devices, peripheral equipment interface devices, monitors, and computer keyboards. All replacement components and parts shall be available to authorized Contractor repair personnel on a 24x7x365 basis. 6.7 SYSTEM OR SOFTWARE UPDATES The CA 9-1-1 Branch expects to allow for system/software updates and enhancements. Contractor(s) are required to: 1. Support this effort throughout the life of the resulting Contract. 2. Updates offered shall meet all current National Emergency Number Association (NENA) i3 requirements. 3. Prior to update, Contractor(s) shall provide notification to the CA 9-1-1 Branch Contract Manager as well as all affected PSAPs with a Technical Services Bulletin (TSB). 4. Submit test plan for the proposed update. Page 175 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 13 of 49 March 26, 2020 5. Validate the update through the CA 9-1-1 Branch NG 9-1-1 Lab as directed by the CA 9-1-1 Branch. 6. Obtain approval from the CA 9-1-1 Branch of the update. 6.8 EVERGREEN SERVICE EXCLUSIONS Evergreen service does not include electrical work or adverse environmental conditions external to equipment or maintenance of accessories, alterations, attachments, or other devices not listed in Cost Workbook. 7 CONTRACTOR FACILITY LOCATIONS All Contractor’s facilities, direct technical and administrative support personnel that will perform services as part of this Contract must be located within the Continental United States (CONUS) or the District of Columbia. 8 CA 9-1-1 BRANCH ROLES AND RESPONSIBILITIES 1) The CA 9-1-1 Branch will designate a person to whom all Contractor communication may be addressed, and who has the authority to act on all aspects of the services, see Section 4 for designee. The CA 9-1-1 Branch designee will be the POC for all documents related to this Contract to ensure understanding of the responsibilities of both parties; 2) The CA 9-1-1 Branch will designate a 9-1-1 Advisor to review the SOW and associated documents. 9-1-1 Advisor shall provide at least a minimum of 10 state business days for the timely review and approval of information and documentation provided by the Contractor. 3) The CA 9-1-1 Branch, in partnership with the PSAP, will determine adequacy of all work performed and all products installed by the Contractor. Should the work performed or the products installed by the Contractor fail to meet expectations, requirements, or specifications, the following resolution process will be employed: a) The Contractor shall, within five (5) State business days after initial problem notification, respond to the CA 9-1-1 Branch by submitting a corrective action plan to address the specific inadequacies or failures in the identified services and products. Failure by the Contractor to respond to the CA 9-1-1 Branch’s initial problem notification within the required time limits may result in immediate termination of the Contract. b) In the event of such termination, the CA 9-1-1 Branch shall pay all amounts due the Contractor for all work accepted prior to termination. c) The CA 9-1-1 Branch will, within five (5) State business days after receipt of the Contractor’s detailed explanation or proposed corrective action plan, notify the Contractor in writing whether it accepts or rejects the explanation and/or plan. If the CA 9-1-1 Branch rejects the explanation or plan, the Contractor Page 176 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 14 of 49 March 26, 2020 will submit a revised corrective action plan within three (3) State business days of notification of rejection. Failure by the Contractor to respond to the CA 9- 1-1 Branch’s notification of rejection by submitting a revised corrective action plan within the required time limits may result in immediate termination of the Contract. In the event of such termination, the CA 9-1-1 Branch shall pay all amounts due the Contractor for all work accepted prior to termination. d) The CA 9-1-1 Branch will, within three (3) State business days of receipt of the revised corrective action plan, notify the Contractor in writing whether it accepts or rejects the revised corrective action plan proposed by the Contractor. Rejection of the revised corrective action plan will result in immediate termination of the Contract. In the event of such termination, the CA 9-1-1 Branch shall pay all amounts due the Contractor for all work accepted prior to termination. 4) Upon first installation in each region the CA 9-1-1 Branch will order network connectivity from the PNSP and RNSP into two (2) logically and physically diverse Contractor points of interface within five (5) working days of: a. Successful testing in the Cal OES NG9-1-1 Lab, b. The identification and CA 9-1-1 Branch approved Contractor points of interface, and c. Completion of the TD-288 approval process. 9 PSAP RESPONSIBILITIES 1) If required to meet special environmental considerations, the PSAP will modify its site facilities to meet the Contractor’s minimum site and environmental specifications as supplied by the Contractor. Costs associated with these modifications shall be the responsibility of the PSAP. 2) Subject to the PSAP’s security regulations, the Contractor shall have full and free access to the CPE equipment. 3) Any lines terminating into the CPE solution (including but not limited to) 7-digit emergency lines, administrative lines, ring downs lines (circuits), direct connects, as well as contact closures. 10 CONTRACTOR’S ROLES AND RESPONSIBILITIES 1) Contractor shall deliver all services and equipment necessary for system deployment. 2) Contractor shall deploy the system and have the system ready for acceptance testing within 180 calendar days from TD-288 issue date, or as defined on the project SOW timeline as agreed upon by the CA 9-1-1 Branch, the Contractor, and the PSAP. 3) Contractor shall perform and provide a PSAP site survey for each CPE installation. 4) Contractor shall provide necessary wiring for connection to CAMA and NG9-1-1 Trunks as well as interface connectivity to all necessary peripheral equipment. Page 177 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 15 of 49 March 26, 2020 5) Contractor shall perform System Readiness Testing prior to cutover, to ensure that the system is installed and operates as defined in SOW. 6) Upon Contract execution the Contractor shall meet via in person meeting or teleconference, with the CA 9-1-1 Branch team at a minimum monthly, or at the discretion of the CA 9-1-1 Branch, to ensure project tasks and timelines are met, with all Contractor Key Staff identified in SOW Section 9. The CA 9-1-1 Branch may require an in-person meeting based on project status. 7) The Contractor shall adhere to and support all interface standards as designed by the PNSP and approved by the CA 9-1-1 Branch. 8) The Contractor shall designate a primary contact person to whom all project communications may be addressed and who has the authority to act on all aspects of the services. 9) The Contractor shall notify the CA 9-1-1 Branch in writing, of all changes in key personnel assigned to the tasks as outlined in Section #9 below. If a Contractor’s employee is unable to perform due to illness, resignation, or other factors beyond the Contractor’s control, the Contractor will provide suitable substitute personnel. The CA 9-1-1 Branch reserves the right to approve all substitute personnel. 10) The Contractor shall perform their duties on PSAP premises during normal business hours, as agreed upon by the PSAP and the vendor. PSAP reserves the right to request non-standard hours if there is a clear and defined operational need. 11) Contractor staff will be subject PSAP background check and security requirements. 12) Contractor shall deliver and provide all documents in electronic format. 13) Contractor shall report all SLAs in accordance to Section 22.1 Contractors Monthly Activity Report. 11 LABOR CLASSIFICATIONS Contractor shall make available each of the labor classifications listed below. Hourly labor will only be used on a limited basis and only with pre-approval from the CA 9-1-1 Branch. The cost identified in Exhibit 22, COST WORKBOOK shall be utilized to support all of these labor classifications: 1) Contractor Trained Technician - A Contractor trained technician is able to diagnose all major and minor system alarms, provide hardware and software repairs, provide recommendations regarding user configurations and make changes to the user defined software. Technician to be available both on site, as well as remotely, for any possible issues. 2) Contracted Technician - The technician is able to provide hardware installations and replacements, provide recommendations regarding user configurations, under the direction of the CPE Contractor. Not available for on premise CPE solution. Page 178 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 16 of 49 March 26, 2020 3) System Engineer - A system engineer shall be capable of engineering the entire solution and any related programming that the Contractor offers through the resulting Contract. 4) Project Manager - The project manager will act as the single point of contact to the PSAP manager (or their designee) and will be available to the PSAP manager during the implementation of a new system. Project manager will be on-site during implementation to the new system if requested by the 9-1-1 Branch. All project managers shall be located in the continental US and will be made available for in-person meetings at the CA 9-1-1 Branch or PSAP request. 12 PROJECT MANAGEMENT For each installation of a 9-1-1 system, the Contractor shall assign a project manager with knowledge and experience in managing system installations of similar complexity. All installations shall use industry accepted project management methodology throughout the project. The project manager shall be the single point of contact between the Contractor and the PSAP throughout the installation and acceptance process. The project manager will be responsible for coordinating with the PSAP all aspects of the installation including project scheduling, installation of equipment, training, problem resolution, acceptance testing, contractual and technical issues and answering all questions the PSAP may have. The Contractor shall assign a project manager who is familiar with 9-1-1 in CA, Internet Protocol (IP) networks, as well as the proposed system. All project managers shall be located in the continental US and will be made available for in-person meetings at the CA 9-1-1 Branch or PSAP request. 13 SUBCONTRACTORS The Contractor shall provide and maintain a list of all subcontractors providing the services identified below. The information shall be submitted in the same format as EXHIBIT 24: LIST OF PROPOSED SUBCONTRACTORS. The Contractor shall notify the CA 9-1-1 Branch, in writing, of any changes of Subcontractor personnel assigned to the tasks within ten (10) business days of the change. The CA 9-1-1 Branch retains the right to approve or not approve. This requirement does not apply to subcontractors that only provide supplies. Page 179 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 17 of 49 March 26, 2020 14 ALTERATIONS AND ATTACHMENTS The PSAP shall not make unauthorized alterations or install attachments to the equipment. Repair of damage attributable to the alteration or attachment will be billed to the PSAPs at the Contractor’s rate provided in Exhibit 22, COST WORKBOOK, Labor Rate. All reprogramming required by the Contractor to accommodate such alterations and/or attachments shall be implemented at the PSAPs expense. 15 PROBLEM ESCALATION The parties acknowledge and agree that certain technical and project related problems or issues may arise, and that such matters shall be brought to the CA 9-1-1 Branch’s attention. Problems or issues shall be reported in monthly status reports and via web-based alert and monitoring systems accessible by the CA 9-1-1 Branch. Severity of the problem(s) as outlined below require escalated reporting. To this extent, the Contractor or the PSAP will determine the level of severity and notify the appropriate CA 9-1-1 Branch personnel. The CA 9-1-1 Branch personnel notified, and the time period taken to report the problem or issue, shall be at a level commensurate with the severity of the problem or issue. CA 9-1-1 Branch escalation levels are as follows: First level: PSAP Advisor First.Last@caloes.ca.gov (916) 657-#### Second level: Advisory and Compliance Unit Supervisor First.Last @caloes.ca.gov (916) 657-#### Third level: Program Management Division Chief First.Last @caloes.ca.gov (916) 657-#### Please refer to the CA 9-1-1 Branch Organizational Chart for up to date personnel: https://www.caloes.ca.gov/wp-content/uploads/PSC/Documents/911-ORG-chart-Jan-2025.pdf 15.1 SERVICE ISSUES AND OUTAGE NOTIFICATION The Contractor shall develop an automated outage notification system that will provide system monitoring capability and outage reporting to the CA 9-1-1 Branch. After Contract award, information for the confidential CA 9-1-1 Branch outage notification phone number and e-mail will be provided. Outage reporting shall Page 180 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 18 of 49 March 26, 2020 incorporate near real-time monitoring per EXHIBIT 21 TECHNICAL REQUIREMENTS. A secure login portal shall be made available to the CA 9-1-1 Branch. 15.1.1 OUTAGE NOTIFICATION In the event of any critical or major service issue(s) or outage(s) as specified in the appropriate Service Level Agreement (SLA), the Contractor shall notify the CA 9-1-1 Branch via a phone call as well as email within thirty (30) minutes of initial report of outage, providing the initial notification and containing the following (as available): 1) PSAP(s) affected; 2) Problem description; 3) Time of failure; 4) Affected systems or services; 5) Impact to 9-1-1 Service; 6) Trouble ticket number; 7) Ticket type (open, monitoring, dispatched). Contractor shall provide follow-up notification as new information becomes available or every 4 hours, whichever occurs first. All updates shall include current status and any additional data pertinent to the outage and its resolution such as: 1) Extent of outage; 2) Affected systems or services (if different than initial); 3) Any 9-1-1 traffic lost in the CPE providers cloud or data center; 4) Sequence of events toward resolution (action taken to resolve the issue); 5) Estimated time of technician arrival (ETA); 6) Estimated time of outage resolution (ETR). When critical or major event is cleared, Contractor shall send a final notification of resolution. The CA 9-1-1 Branch may review this with the Contractor every month, to determine if notifications need to be adjusted. See SLA Section 22. 15.1.2 OTHER EVENT NOTIFICATION For any other service issue(s) or outage(s) that the monitoring system does not report on, the Contractor shall notify the CA 9-1-1 Branch. Contractor shall notify the CA 9-1-1 Branch of the problem via phone call and e-mail within thirty (30) minutes of initial report of outage or disruption of service(s). Contractor shall provide the initial notification, which will contain the following (as available): 1) PSAP(s) affected; Page 181 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 19 of 49 March 26, 2020 2) Problem description; 3) Time of failure; 4) Affected systems or services; 5) Impact to 9-1-1 Service; 6) Trouble ticket number; 7) Ticket type (open, monitoring, dispatched). When the event is cleared, Contractor shall send a final notification of resolution. The CA 9-1-1 Branch may review this report, including root cause analyses, with the Contractor every month, to determine if notifications need to be adjusted. See SLA Section 17. 16 CHANGE CONTROL PROCESS The Contractor shall not make any changes after implementation and successful acceptance of the CPE service, unless approved by the CA 9-1-1 Branch. 17 CONTRACTOR TASKS AND DELIVERABLE REQUIREMENTS 17.1 MAINTENANCE PLAN Contractor shall be responsible for maintaining all on-premises, cloud, or data center based CPE Services for the term of the Contract. No additional costs outside of the EXHIBIT 22 – Cost Worksheet, shall be incurred by the CA 9-1-1 Branch or the PSAP. Contractor shall include a draft maintenance plan in response to this RFP. A final maintenance plan shall be submitted to the CA 9-1-1 Branch for review and approval within 90 days from Contract execution. Planned or unplanned maintenance shall not disrupt 9-1-1 service or trigger any SLAs. Maintenance Plan shall include at a minimum: 1) Hardware Issues; 2) Servers; 3) Switches; 4) Routers; 5) Software Issues; 6) Operating System Software Issues; 7) Security System Software Issues; Page 182 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 20 of 49 March 26, 2020 8) Connectivity Issues. 18 TRAINING 18.1 TRAINING TIMES AND LOCATIONS For the purposes of training, the Contractor shall provide formal, hands-on instruction for PSAP personnel in operation of the equipment during the acceptance testing period. Training for equipment installation coordinators and project leaders will be conducted at the PSAP. 18.2 TRAINING PLAN The Contractor shall provide training and training materials to ensure that all users and administrators can proficiently use the 9-1-1 CPE system. The Contractor will provide the following: 1) A comprehensive training program that provides CPE users with the skills necessary to operate all features of the 9-1-1 system 2) Training at a time mutually agreed upon by the PSAP and the Contractor. Training schedule to be created by Contractor 3) Instructors proficient with the provided solution 4) Training to be provided within two weeks of go-live (PSAP delays are not considered a reason to change the training schedule) 5) Train no more than six (6) users per instructor, per class, unless a larger class is mutually agreed to by the PSAP and the Contractor. All training classes should be scheduled so as to reduce the number of site visits necessary to train all personnel 6) In addition to CPE user training, the Contractor will provide administrator training: a) This training shall cover routine MACs accessible by a System Administrator, routine trouble shooting procedures and problem reporting procedures. b) MIS training shall be provided no more than 30 calendar days following cutover. c) Training will also include an on-site instructor(s) at the beginning of the system acceptance testing period. The purpose of the instructor(s) will be to assist PSAP Page 183 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 21 of 49 March 26, 2020 personnel as needed after they begin using the new equipment (cutover coach). 7) Post-cutover training shall be provided to the PSAP upon the PSAP’s request. Post-cutover training will be provided for no less than six (6) users or system administrators in any single training session. 8) Appropriate manuals and other materials must be provided to each participant in training. All manuals and materials must be provided in an electronic format only. 9) Online reference materials and manuals must be updated on a continual basis to reflect CPE system upgrades, new functionality, and system releases. 18.3 TRAINING ON NEW FUNCTIONALITY If requested by the PSAP, training and documentation on new functionality shall be provided by the Contractor at no charge to the PSAP or the CA 9-1-1 Branch. 19 CPE SYSTEM ACCEPTANCE Acceptance testing is intended to ensure that the system acquired operates according to the manufacturer’s technical specifications, performs as warranted by the requirements of this Contract, and exhibits a 99.999% level of availability. Acceptance testing is required for all 9-1-1 CPE deployments. System acceptance testing shall commence on a mutually agreed date and time within 10 business days after Contractor issues a certificate of system readiness. In the event the system does not meet the standard of performance during the initial 10 days, the CA 9-1-1 Branch will be included in ongoing communications regarding progress or delays. The acceptance-testing period shall not be delayed due to a PSAP request to make a change within a system’s featured functionality. Failures during acceptance testing period caused by sources outside of the Contractor’s control, and approved by the CA 9-1-1 Branch, shall initiate a stop-clock. If system is operating as designed (and as captured in the SOW) the PSAP may not delay system acceptance beyond the 10 day time frame. If such a delay occurs, the PSAP may be subject to loss of residual funding and shall be responsible for all labor performed by the Contractor at the hourly rate in Exhibit 22. Page 184 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 22 of 49 March 26, 2020 The PSAP and the CA 9-1-1 Branch will judge the acceptability of all work performed and all work products produced by the Contractor as a result of this SOW. 19.1 ACCEPTANCE TESTING CRITERIA 1) The Contractor shall issue a certificate of system readiness when equipment and software are installed and ready for acceptance testing. Acceptance testing will begin on a date and time agreed upon by the PSAP and the Contractor and will end when the equipment and software have met the standard of performance Acceptance Testing Criteria for a period of 240 consecutive hours. 2) No invoice shall be paid by the CA 9-1-1 Branch until all of the items on the CPE system acceptance form are met. Upon successful completion of the acceptance testing period, the PSAP shall sign system acceptance and provide copies to the Contractor and the CA 9-1-1 Branch. 3) The standard of performance for acceptance testing is defined as the operation of equipment and/or software at an average level of effectiveness of 99.999% for a period of 240 consecutive hours. 4) During the acceptance testing period, if the system is not performing as intended, the Contractor shall adhere to the response time requirements specified in the SOW. 5) If the system does not meet the standard of performance within 90 consecutive calendar days after the start of the acceptance testing, the PSAP shall have the option to request a replacement system, extend the testing period, or terminate the order. The PSAP's option shall remain in effect until the system meets the performance criteria. If the system has not met the standard of performance by 180 calendar days after installation, the order may be cancelled. If the CA 9-1-1 Branch determines the same type of system and/or vendor have not met the standard of performance or agreed upon contractual obligations at more than three (3) planned installations during the term of this Contract, the system and/or vendor may be removed from the Contract at the discretion of the CA 9-1-1 Branch. 19.2 CONTRACT TERMINATION Should the work performed, or the products produced by the Contractor fail to meet the PSAP SOW conditions, requirements, specifications, guidelines, or other applicable standards, the following resolution process will be employed, except as superseded by other binding processes. The CA 9-1-1 Branch will notify the Contractor in writing within ten (10) State business days after completion of each phase of service of any acceptance problems by Page 185 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 23 of 49 March 26, 2020 identifying the specific inadequacies and/or failures in the services performed and/or the products produced by the Contractor. The Contractor will, within five (5) State business days after the initial problem notification, respond to the CA 9-1-1 Branch by submitting a detailed explanation describing precisely how the identified services and/or products actually adhere to and satisfy all applicable requirements, and/or a proposed corrective action plan to address the specific inadequacies and/or failures in the identified services and/or products. Failure by the Contractor to respond to the CA 9-1-1 Branch initial problem notification within the required time limits may result in immediate termination of the Contract. The CA 9-1-1 Branch will, within ten (10) State business days after receipt of the Contractor’s detailed explanation and/or proposed corrective action plan, notify the Contractor in writing whether it accepts or rejects the explanation and/or plan. If the CA 9-1-1 Branch rejects the explanation and/or plan, the Contractor will submit a revised corrective action plan within five (5) State business days of notification of rejection. Failure by the Contractor to respond to the CA 9-1-1 Branch’s notification of rejection by submitting a revised corrective action plan within the required time limits may result in immediate termination of the Contract. The CA 9-1-1 Branch will, within ten (10) State business days of receipt of the revised corrective action plan, notify the Contractor in writing whether it accepts or rejects the revised corrective action plan proposed by the Contractor. Rejection of the revised corrective action plan will result in immediate termination of the Contract. In the event of such termination, the CA 9-1-1 Branch shall pay all amounts due the Contractor for all work accepted prior to termination. 20 DATA HANDLING 20.1 DATA HANDLING AND OWNERSHIP All 9-1-1 traffic data shall be the property of the PSAP. All meta-data relating to this Contract shall be the property of the CA 9-1-1 Branch. All 9-1-1 traffic data and meta- data shall not be accessed or distributed by any Contractor or any of its subcontractors. 20.2 CALL DATA RECORDS All 9-1-1 Call Data Records (CDR) are the property of the CA 9-1-1 Branch and shall be made available to the PSAP. The Contractor shall utilize Session Internet Protocol (SIP) metadata and i3 logging to monitor, track and verify data flow as a part of the CDR. All NG9-1-1 metadata shall have a ten (10) year retention period. Page 186 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 24 of 49 March 26, 2020 20.3 9-1-1 TRAFFIC DATA All 9-1-1 Traffic Data is the property of the PSAP and shall be retained as per EXHIBIT 21, TECHNICAL REQUIREMENTS. 21 PSAP HELP DESK/CALL CENTER. Contractor shall provide a point of contact 24 hours a day, 7 days a week, 365 days a year, for the CA 9-1-1 Branch, PSAP, and Contractor personnel to report trouble on the respective CPE Services in accordance with requirements as identified in EXHIBIT 21, TECHNICAL REQUIREMENTS. The Contractor shall provide help desk and call center service in accordance with EXHIBIT 21, TECHNICAL REQUIREMENTS. 22 SERVICE LEVEL AGREEMENTS (SLA) 22.1 SLA CONTRACTOR’S MONTHLY ACTIVITY REPORT By the 10th of each month, the Contractor shall provide the CA 9-1-1 Branch with a detailed report of system availability under this Contract using Monthly Technical SLA Compliance Report listed below, Contractor’s Monthly Activity Report, SLA Section 22. The CA 9-1-1 Branch reserves the right to require the Contractor to make minor modifications to the format and content of these reports during the Contract term, at no cost. At the conclusion of each month’s meeting, the CA 9-1-1 Branch will advise Contractor on any SLAs that have not been met. Contractor agrees this will be final notification and will move forward with any appropriate credit or adjustment for the next billing cycle. Contractor agrees this meeting shall serve as notification in compliance with the SLA terms. The remedy for each missed SLA shall be solely determined by the State. A single outage can trigger multiple SLAs. 22.2 CONTRACTOR’S MONTLY ACTIVITY REPORT Monthly Activity Report shall include at a minimum the fields listed below: 1) ID; 2) PSAP Name Impacted; 3) Month Date; 4) Day/Time Start; 5) Day/Time End; 6) Duration Hour: Min 7) Reporting Entity; Page 187 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 25 of 49 March 26, 2020 8) Outage Type; 9) Cause of Incident/Outage; 10) Summary of Incident/Outage; 11) Yes/no if qualified for SLA; 12) The applicable SLA; 13) Rights and remedies applied to each ticket when applicable; 14) Other. 22.3 SLA REPORTING REQUIREMENTS The following SLAs provide charts describing the definition, measurement method, objective, and rights and remedies for each category. The following SLAs are not intended to supersede any regulatory or statutory requirements and/or penalties imposed by the FCC, CPUC, or any other legislative oversight. 22.3.1 TIME TO REPAIR CRITICAL FAILURE Definition Measurement Method Objective Rights and Remedies Critical Failure is defined as any CPE failure that prevents 10 digit or 9-1-1 traffic, including but not limited to, voice, text, and video from being delivered to and/or answered at the PSAP. Includes failure of 25% or more workstations at the PSAP with 5 positions or more. Also applies to failure of 51% or more workstations at the PSAP with 4 or fewer workstations. Time to repair will be measured from time failure is reported and will conclude when repair has been made and the trouble ticket has been closed. Each Critical Failure will be resolved within four (4) hours of notification to the Contractor’s customer support center or by alarm, whichever comes first. Each occurrence of a failure to meet this SLA objective shall result in a 25% credit of the CPE Service Cost MRC of all affected PSAPs. A critical failure lasting longer than 8 hours shall result in a credit of 100% of the CPE Service Cost MRC of all affected PSAPs. 22.3.2 TIME TO REPAIR MAJOR FAILURE Definition Measurement Method Objective Rights and Remedies Major Failure is a loss of any 10 digit or 9-1-1 traffic processing capability affecting Time to repair will be measured from time failure is reported and will conclude when repair has Each Major Failure will be resolved within eight (8) hours of Each occurrence of a failure to meet this SLA objective shall result in a 15% credit of the Page 188 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 26 of 49 March 26, 2020 either the software, system workstations, or the call taking system as a whole. Call may still be answered but major system functionality has been disabled or disrupted, e.g. Location information, transfer, hold, supplemental data, etc. are disrupted. been made and the trouble ticket has been closed. notification to the Contractor’s customer support center or by alarm, whichever comes first. CPE Service Cost MRC for all affected PSAPs. A major failure lasting longer than 12 hours shall result in a credit of 100% of the CPE Service Cost MRC of all affected PSAPs. 22.3.3 TIME TO REPAIR MINOR FAILURE Definition Measurement Method Objective Rights and Remedies Minor Failure is defined as any feature or function that affects non- critical CPE functionality as specified in the SOW or technical requirements. This applies specifically to any software features that enhance call processing but do not hinder call processing. Time to repair will be measured from time failure is reported and will conclude when repair has been made and the trouble ticket has been closed. Each Minor Failure will be resolved within 72 hours of notification to the Contractor’s customer support center or by alarm, whichever comes first. Each occurrence of a failure to meet this SLA objective shall result in a 5% credit of the CPE Service Cost MRC for the affected PSAP. A minor failure lasting longer than 240 hours shall result in a credit of 20% of the CPE Service Cost MRC of all affected PSAPs. 22.3.4 AVAILABILITY (CLOUD/DATA CENTER) Definition Measurement Method Objective Rights and Remedies Availability captures short duration outages within a month that do not trigger other time to repair SLAs such as Critical, Major, and Minor. The monthly availability percentage equals the scheduled uptime per month less unavailable time divided by scheduled uptime per month, multiplied by 100, on a per PSAP basis. Monthly up-time shall be greater than 99.999%. Each occurrence of a failure to meet this SLA objective shall result in a 20% credit of the CPE Service Cost MRC for the affected PSAP. For more than three (3) months in a row or five (5) months in any 12 Page 189 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 27 of 49 March 26, 2020 month period occurrences of a failure to meet this SLA objective shall result in the PSAP’s ability to terminate the service contract with 30 calendar days’ notice, with no early termination charges to Cal OES or the PSAP. For more than six (6) months in any 12 month period, occurrences of a failure to meet this SLA objective shall result in a breach of contract, with all service in CA terminated. 22.3.5 OUTAGE NOTIFICATION Definition Measurement Method Objective Rights and Remedies Outage is defined as critical failure of CPE (as defined in time to repair critical failure SLA). Critical failure with a duration of thirty (30) minutes or more. Notification to Cal OES of all outages of thirty (30) minutes or more. $1,000 credit for failure to notify Cal OES within thirty (30) minutes of outage. Failure to report continuing after the initial thirty (30) minutes will result in an additional $5,000 per every fifteen (15) minute increment. Not to exceed $25,000 per outage. 22.3.6 DELETED 22.3.7 SLA REPORTING Definition Measurement Method Objective Rights and Remedies Contractors shall provide SLA reports for each Calendar days Contractors shall deliver accurate and complete Each occurrence of a failure to meet the objective shall result in Page 190 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 28 of 49 March 26, 2020 month of activity during the term of the Contract. reports no more than 30 calendar days following the end of the applicable reporting month. a $1000.00 credit for each business day that the report is not delivered. 22.3.8 SLA REMITTANCE Definition Measurement Method Objective Rights and Remedies Timely remittance of service credits to the CA 9-1-1 Branch for missed SLA objectives. Billing cycle Credit shall be applied to invoice no more than two billing cycles after notification by the CA 9-1-1 Branch of the SLA to the vendor. Each occurrence of an SLA remedy (credit) that is not remitted within two billing cycles will result in an additional $5,000.00 remittance for each billing cycle that the credit is not issued. 22.3.9 SOFTWARE FIX Definition Measurement Method Objective Rights and Remedies Contractor must be able to roll back to previous version of CPE software within 1 calendar day of discovery when any update, bug fix, patch, hot fix, etc. causes a critical, or major failure at the PSAP. Calendar Days To prevent outages at the PSAP due to faulty software updates. Contractor to provide $500 credit or adjustment for every day after notification, until the CPE software is rolled back. 22.3.10 QUALITY OF SERVICE Definition Measurement Method Objective Rights and Remedies Page 191 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 29 of 49 March 26, 2020 Contractor shall process and deliver voice calls with little or no degradation of voice quality of the call from the ingress demarcation point to the PSAP, as measured by a third party. SLA does not apply if PNSP or RNSP is determined to be the cause of the audio degradation. MOS values shall be measured by a third party to determine the average MOS score, unless a problem has been detected. At five (5) minute intervals, 99% of the MOS measurements shall exceed 2.6 and 90% shall exceed 3.8. For the affected PSAP: 25% credit, or adjustment of CPE MRC for single occurrence. 50% credit/or adjustment of CPE MRC for second occurrence within a 60-minute period. 100% credit/or adjustment of CPE MRC for third occurrence within a 60-minute period. 22.3.11 PLANNED OUTAGES Definition Measurement Method Objective Rights and Remedies All planned outages shall be communicated to the CA 9-1-1 Branch as well as the PSAPs via written and verbal notification and justification. Notification shall occur no less than 48 hours prior to planned outage. To provide advanced warning, enabling Cal OES and the PSAPs time to prepare. Lack of 48 hours’ notice shall result in a one-time $10,000 credit to Cal OES. 22.3.12 NON-DELIVERY OF SYSTEM REQUIREMENTS Definition Measurement Method Objective Rights and Remedies CPE shall deliver all functional requirements as spelled out in this SOW as well as Exhibit 21. PSAP notification and subsequent validation of non- compliance shall be penalized by Cal OES. Any non-functioning technical requirement, per RFP technical requirements checklist. To ensure all CPE features and functions are delivered to the PSAP. Credit or adjustment of TMRC for 75% of deployed PSAPs per month upon discovery and validation, until functionality is delivered and verified by the CA 9-1-1 Branch. If functionality is not delivered within 18 months, Cal OES shall consider this a breach of contract. All CPE services with the Page 192 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 30 of 49 March 26, 2020 vendor in CA will be terminated. 22.3.13 FAILURE TO COLLABORATE Definition Measurement Method Objective Rights and Remedies Contractor shall incorporate, when required, necessary Cal OES approved changes to the interface or connection between NGCS and CPE. Calendar Days. Interface changes to CPE shall be implemented within 6 months of successful completion of testing in the Cal OES NG9-1-1 Lab. To ensure collaboration and cooperation between NGCS and Contractors, allowing for NG9- 1-1 evolution over time. Failure to comply shall result in a $500 per day credit, adjustment to Cal OES. 22.3.14 ROOT CAUSE ANALYSIS FOR UNPLANNED OUTAGES Definition Measurement Method Objective Rights and Remedies Root cause analysis (RCA) shall be provided to Cal OES for all unplanned outages. Calendar days Contractor shall provide RCA with 30 business days of any unplanned outage. To give Cal OES visibility into the NG9-1-1 ecosystem. Failure to comply will result in a $500 per day credit, adjustment to Cal OES 22.3.15 SYSTEM MONITORING (CLOUD/DATA CENTER) Definition Measurement Method Objective Rights and Remedies Contractor shall deliver all system monitoring access 24/7/365. The monthly availability percentage equals the scheduled uptime per month less unavailable time divided by scheduled uptime per month, multiplied by 100. Scheduled uptime is based on 24x number of days in the month. The monthly availability percentage shall be based on the cumulative total of all outage durations for each calendar month. 99.999% availability of system monitoring to Cal OES. Each occurrence of a failure to meet this SLA objective shall result in a 15% credit of the Vendor’s total CPE Service Cost MRC. Page 193 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 31 of 49 March 26, 2020 22.3.16 CUMMULATIVE / MULTIPLE SLA LIMITATIONS Definition Measurement Method Objective Rights and Remedies Contractor, shall be responsible to remit credits, adjustments, and SLA reports in the event a single event triggers multiple SLAs. Multiple SLA’s triggered in a single month by a single event. Establish a maximum SLA threshold. In the event multiple SLA’s are triggered by a single event in a single month, the total cumulative SLA credit / adjustment shall not exceed 50% of the total MRC for the month corresponding to the event, unless a single SLA violation identifies a larger right and remedy. 22.3.17 STANDARDS COMPLIANCE UPDATES Definition Measurement Method Objective Rights and Remedies Contractor, shall update the CPE solution to comply with NENA i3 standards, based on the timeline and deployment process as directed by the CA 9-1-1 Branch. For most, but not necessarily all updates, the CA 9-1-1 Branch will direct a minimum timeline of six (6) months. Timeline begins when directed by the CA 9-1-1 Branch. Measurement will be in calendar days. Timely deployment of CPE upgrades based on notification by the CA 9-1-1 Branch. Failure to deliver by15 days of the CA 9-1-1 Branch directed deadline shall result in 50% credit of the affected month’s MRC for each deployed solution. Failure to deliver by 180 days of the CA 9- 1-1 Branch directed deadline shall result in 100% credit of the affected month’s MRC for each deployed solution and a Senior Executive shall appear at the 9-1-1 Advisory Board to report on the vendors failure to comply. Failure to deliver by 365 days of the CA 9- 1-1 Branch directed Page 194 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 32 of 49 March 26, 2020 deadline shall result in Contract termination. 22.3.18 I3 COMPATABILITY FOR ON PREMISE CALL HANDLING Definition Measurement Method Objective Rights and Remedies Contractor shall provide CPE solutions which complies with NENA i3 standards. If call handling system is not NENA i3 compliant, Contractor will be provided 180 calendar days from date of proposed NG network go- live to make necessary updates. Timely deployment of CPE updates based on NG network go-live. Failure to deliver by calendar 180 days of the CA 9-1-1 Branch directed deadline shall result in 100% credit of the NRC, as listed on the TD288, for each deployed solution and a Senior Executive shall appear at the 9-1-1 Advisory Board to report on the vendors failure to comply. Failure to deliver by 365 calendar days of the CA 9-1-1 Branch directed deadline shall result in Contract termination. 22.4 STOP CLOCK CONDITIONS The following stop-clock conditions shall apply during the term of this Contract including any and all extensions. Timeframes are dependent on the length of time the Contractor takes to restore the service, minus the time associated with events outside of the Contractor’s control, and approved by the CA 9-1-1 Branch, to prevent punitive damages from being assessed. 1) Periods when a restoration or testing effort is delayed at the specific request of the PSAPs with CA 9-1-1 Branch approval. The stop-clock condition shall exist during the period the Contractor was delayed, provided that reasonable and documented efforts are made to contact the PSAPs during the applicable stop- clock period 2) Time after a service has been restored, but the PSAPs is not available to verify that the service is working Page 195 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 33 of 49 March 26, 2020 3) Restoration cannot be achieved because the problem has been isolated to wiring and/or connectivity that is not maintained by Contractor, or any of its subsidiaries, subcontractors, or affiliates 4) Trouble caused by a UPS problem outside of the responsibility of the Contractor 5) Lack of building entrance facilities or conduit structure that are the PSAPs responsibility to provide 6) PSAP access that is restricted as a result of an emergency 7) Site contact refuses access to technician who displays proper identification 8) Any problem or delay caused by a third party not under the control of Contractor, with CA 9-1-1 Branch approval. Contractor’s affiliates, subsidiaries, or subcontractors under the control of Contractor are not subject to this stop-clock provision NOTE: A PSAPs request to hold a ticket open for observation shall not constitute a stop- clock condition. The PSAP or technician is required to open a new ticket for observation. 22.5 REPORTING TROUBLE TICKET LOG Contractors shall maintain a Trouble Ticket Log that will track the progress and status of restoration for all SLAs. The Contractor’s Trouble Ticket Log will include the date and time that each failure was reported, or system alarm of failure whichever occurs first, each PSAP affected by the failure, the current status of the restoration process and the date and time that the failure is remedied to the PSAP representative’s satisfaction. All trouble tickets shall be e-bonded with RNSP and PNSP Contractors. The Contractor shall provide a dashboard for remote, 24/7/365 access to the CA 9-1-1 Branch, as well as requesting PSAPs, in order to track progress of the restoration of failures and to validate SLA calculations. 23 INSURANCE REQUIREMENTS Contractor shall comply with all requirements outlined in the one (1) General Provisions section and two (2) Contract Insurance Requirements outlined in this section. No payments will be made under this Contract until Contractor fully complies with all requirements. 1) General Provisions Applying to All Policies a) Coverage Term – Coverage needs to be in force for the complete term of the Contract. If insurance expires during the term of the Contract, a new Page 196 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 34 of 49 March 26, 2020 certificate must be received by the State at least 30 days prior to the expiration of this insurance. Any new insurance must comply with the original terms of the Contract; b) Policy Cancellation or Termination & Notice of Non-Renewal – Contractor is responsible to notify the State within five (5) business days of any cancellation, non-renewal or material change that affects required insurance coverage. New certificates of insurance are subject to the approval of the Department of General Services and the Contractor agrees no work or services will be performed prior to obtaining such approval. In the event Contractor fails to keep in effect at all times the specified insurance coverage, the State may, in addition to any other remedies it may have, terminate this Contract upon the occurrence of such event, subject to the provisions of this Contract; c) Premiums, Assessments and Deductibles – Contractor is responsible for any premiums, policy assessments, deductibles or self-insured retentions contained within their insurance program; d) Primary Clause – Any required insurance contained in this Contract shall be primary, and not excess or contributory, to any other insurance carried by the State; e) Insurance Carrier Required Rating – All insurance companies must carry an AM Best rating of at least “A–” with a financial category rating of no lower than VII. If the Contractor is self-insured for a portion or all of its insurance, review of financial information including a letter of credit may be required; f) Endorsements – Any required endorsements requested by the State must be physically attached to all requested certificates of insurance and not substituted by referring to such coverage on the certificate of insurance; g) Inadequate Insurance – Inadequate or lack of insurance does not negate the Contractor’s obligations under the Contract; h) Use of Subcontractors - In the case of Contractor’s utilization of subcontractors to complete the contracted scope of work, Contractor shall include all subcontractors as insured’s under Contractor’s insurance or supply evidence of subcontractor’s insurance to the State equal to policies, coverages, and limits required of Contractor. i) Contractor may, in its sole discretion, self-insure any of the required insurance under the same terms as required by this Agreement subject to approval by the State of California. 2) Contract Insurance Requirements Page 197 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 35 of 49 March 26, 2020 Contractor shall display evidence of the following on a certificate of insurance evidencing the following coverages: a) Commercial General Liability Contractor shall obtain, at Contractor’s expense, and keep in effect during the term of this Contract, Commercial General Liability Insurance covering bodily injury, and property damage in a form and with coverages that are satisfactory to the State. This insurance shall include personal and advertising injury liability, products, completed operations, and contractual liability coverage for the indemnity provided under this Contract. Coverage shall be written on an occurrence basis in an amount not be less than $1,000,000 per occurrence. Annual aggregate limit shall not be less than $2,000,000. The State of California, its officers, agents, and employees are to be included as additional insured by endorsement with respect to liability caused in whole or in part by Contractor’s work or operations with respect to this Agreement b) Automobile Liability Contractor shall maintain motor vehicle liability with limits of not less than $1,000,000 combined single limit. Such insurance shall cover liability arising out of a motor vehicle including owned, hired, and non-owned motor vehicles. The State of California, its officers, agents, and employees are to be included as additional insured by endorsement with respect to liability arising out of such accident with respect to this agreement. c) Workers’ Compensation and Employer’s Liability Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. Policy shall be endorsed to include a waiver of subrogation in favor of State of California. d) Technology Professional Liability/Errors and Omissions Insurance appropriate to the Contractors profession and work hereunder, with limits not less than $1,000,000 per claim. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Contractor in this agreement. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. 1. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the State in the care, Page 198 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 36 of 49 March 26, 2020 custody, or control of the Contractor. If not covered under the Contractors liability policy, such “property” coverage may be endorsed onto the Contractors Cyber Liability Policy as covered property as follows: Cyber Liability Coverage in an amount sufficient to cover the full replacement value of damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the State that will be in the care, custody, or control of Vendor. 3) If Policy is written on a claims-made basis provide the following: a) The Retroactive Date must be shown, and must be before the date of the Contract or the beginning of Contract work; b) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Contract of work; c) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. 4) Other Required Insurance Provisions. Certificate of Insurance must also contain all of the following provisions: a) Name and address of the insurance company, the policy number, and the beginning and ending dates of the policy; b) Contractor is responsible to notify the State within thirty (30) calendar days before the effective date of any cancellation, non-renewal, or material change that affects required insurance coverage. In the event Contractor fails to keep in effect at all times the specific insurance coverage, the State may, in addition to any other remedies it may have, terminate this Contract upon the occurrence of such event, subject to the provisions of this contract; c) The Contractor shall submit the certificate of insurance, identifying the California Governor’s Office of Emergency Services Contract number. Page 199 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 37 of 49 March 26, 2020 24 BUDGET DETAIL AND PAYMENT PROVISIONS 1) The Contractor shall be limited to two (2) months of back billing including any reconciliation effort, on all services and functionality ordered under the Contract. Invoices presented more than 12 months after the formal acceptance of the service or functionality will not be considered valid and shall not be paid; 2) The Contractor shall reconcile incorrect invoices within 30 calendar days from the date of notification by the CA 9-1-1 Branch of the discrepancy. The CA 9-1- 1 Branch shall suspend all current charges when unresolved disputed items extend beyond 90 days. Remittance shall resume to include any outstanding payments, upon resolution; 3) The Contractor shall issue invoices to the CA 9-1-1 Branch for only those milestone services after system testing and acceptance, as agreed by the CA 9- 1-1 Branch. The NRC and the MRC shall be on separate invoices; 4) The Contractor shall render invoices for total monthly service charges following the month for which the charges accrue. Monthly service billing shall only be billed in full month increments after service has been rendered; 5) The Contractor shall provide invoices under this Contract in accordance with the CA 9-1-1 Branch Operations Manual. Example: Exhibit A, SOW - Attachment 1 CPE SERVICE INVOICE TEMPLATE; 6) All invoices submitted to the CA 9-1-1 Branch as a result of this Contract will be billed separately from other charges the Contractor may currently be billing. Invoices not received in the approved format shall not be processed; 7) Payment for services performed under this Contract shall not exceed the rates listed in EXHIBIT 22 COST WORKBOOK. It shall be the CA 9-1-1 Branch Advisory and Compliance Unit Supervisor’s determination as to whether a service has been successfully completed and is acceptable; 8) Submit electronic invoices with reference to the Contract number to: Email: CA911Invoicing@caloes.ca.gov California Governor’s Office of Emergency Services Public Safety Communications Page 200 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 38 of 49 March 26, 2020 Attention: CA 9-1-1 Branch 9-1-1 Reconciliation Unit 601 Sequoia Pacific Blvd., MS9-1-1 Sacramento CA 95811 9) The Contractor shall not assess late fees for any reason; 10) The Contractor costs related to items such as travel or per diem are costs of the Contractor and will not be paid separately as part of this Contract. 25 BUDGET CONTINGENCY CLAUSE 1) Payment will be made in accordance with, and within the time specified in, Government Code Chapter 4.5, commencing with Section 927. Payment to small/micro businesses shall be made in accordance with and within the time specified in Chapter 4.5, Government Code 927 et seq. 2) It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Contract does not appropriate sufficient funds for the program, this Contract shall be of no further force and effect. In this event, the CA 9-1-1 Branch shall have no liability to pay any funds whatsoever to the Contractor or to furnish any other considerations under this Contract and Contractor shall not be obligated to perform any provisions of this Contract. 3) If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the CA 9-1-1 Branch shall have the option to either cancel this Contract with no liability occurring to the CA 9-1-1 Branch, or offer an amendment to the Contract to reflect the reduced amount. 26 GENAI 26.1 DEFINITIONS: For purposes of this Section, the following terms shall be given the meaning shown below. 26.1.1 Artificial Intelligence (AI): an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments (Gov Code §§ 11549.64 & 11546.45.5). 26.1.2 GenAI Training Data: any content, information, or data that is used to train, tune, test, or validate a GenAI, including text, images, video, audio, code, or similar types of input. 26.1.3 Generated Data: any output, results, content, or other data that is produced by GenAI, including but not limited to text, images, video, audio, code, or similar types of Page 201 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 39 of 49 March 26, 2020 output. 26.1.4 Generative AI (GenAI): an AI system that can generate derived synthetic content, including text, images, video, and audio, that emulates the structure and characteristics of the system’s GenAI Training Data (Gov Code §11549.64). 26.1.5 Hallucination: Generated Data that is nonsensical, false, or misleading, and is not based on real or existing data, but is instead produced by bias or the GenAI’s extrapolation or creative interpretation of its Gen AI Training Data. 26.1.6 Materially Impacts: shall have the same meaning set forth in State Administrative Manual (SAM) 4986.2. 26.1.7 Prompt: any written, spoken, or rendered information provided as a query, command, or other form of input, to any GenAI in connection with this Contract. For avoidance of doubt, Prompt includes any input automatically detected or created by the GenAI, as well as any derivate works of a Prompt or collection of Prompts. 26.2 GENAI DISCLOSURE OBLIGATIONS: 26.2.1 Disclosure Obligations: (a) Contractor must immediately notify the State in writing if it: (1) intends to provide GenAI as a Deliverable to the State; or (2) intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any Deliverable that materially impacts: (i) functionality of the System, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the same meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI. (b) Such notification shall be provided to the State designee identified in this Contract. (c) At the direction of the State, Contractor shall discontinue the provision to the State of any previously unreported GenAI that results in a material impact to the functionality of the System, risk to the State, or Contract performance, as determined by the State. (d) If the use of previously undisclosed GenAI is approved by the State, then Contractor will update the Deliverable description, and the Parties will amend the Contract accordingly, which may include incorporating the GenAI Special Provisions into the Contract, at no additional cost to the State. 26.2.2 Failure to Disclose or Discontinue GenAI Use: The State, at its sole discretion, may consider Contractor’s failure to disclose or discontinue the provision or use of GenAI as described above, to constitute a material breach of Contract when such failure results in a material impact to functionality of the System, risk to the State, or Contract performance. The State is entitled to seek any and all remedies available to it under law as a result of such breach, including but not limited to termination of the contract, for default pursuant to Section 17. 26.3 CONTRACTOR’S OBLIGATIONS FOR RESPONSIBLE USE: 26.3.1 Contractor shall ensure that it has obtained all necessary consents, permissions, and licenses from data subjects and third parties to use the GenAI for this Contract. Subject to Section 21, Contractor represents and warrants, it has the appropriate U.S. Page 202 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 40 of 49 March 26, 2020 Intellectual Property Rights associated with any GenAI used in the Deliverables provided under the Contract. 26.3.2 Contractor shall ensure that the GenAI included, or made available as part of the Deliverables is equitable, non-discriminatory, and reasonably well-designed to avoid harmful, offensive, dangerous, and unlawful impact. (Government Code11549.63. Contractor shall be liable for any Hallucination produced by the GenAI that has an adverse impact on Generated Data or a Deliverable. 26.3.3 Contractor shall comply with all applicable laws and regulations, including as set forth in Section 7 above and these General Provisions in relation to the provision or use of any GenAI in the Deliverables. 26.4 GENAI TRAINING DATA OWNERSHIP: Except as otherwise agreed to by the Parties, Contractor shall retain all ownership and intellectual property rights in the GenAI Training Data it provides. 26.5 RIGHTS TO STATE GENERATED DATA: In addition to Government Purpose Rights set forth in Section 9, the Parties agree that Generated Data created from a State provided Prompt is not a derivative work of the GenAI Training Data. Notwithstanding the preceding sentence, in the event a court of competent jurisdiction determines that Generated Data created from a State-provided Prompt constitutes a derivative work of the GenAI Training Data, Contractor agrees to grant the State an unlimited, irrevocable, worldwide, perpetual, royalty-free, non- exclusive right, and license to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the Generated Data for any State Government Purpose Rights. 26.6 CONTRACTOR’S USE OF STATE DATA: Contractor shall not incorporate any Non-Public State Data into GenAI Training Data and shall not otherwise utilize Non-Public State Data to train, tune, maintain, improve, or develop GenAI, except with the express written authorization from the State specifying the Non-Public State Data that may be used along with the acceptable scope of such usage. Page 203 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 41 of 49 March 26, 2020 SOW - ATTACHMENT 1: CPE SERVICE INVOICE SAMPLE TEMPLATE Page 204 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 42 of 49 March 26, 2020 Page 205 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 43 of 49 March 26, 2020 SOW - ATTACHMENT 1A: CPE SERVICE INVOICE TEMPLATE INSTRUCTIONS 1. VENDOR: Name, Vendor Remittance Address, and Direct contact number for inquires on this account 2. DATE: Invoice issue date 3. CONTRACT/TRACKING NO: Contract number (Ref. TDe-288) and state tracking number ‘mandatory’ (Ref. TDe-288) 4. ACCOUNT NUMBER: Vendor account number identifier 5. INVOICE NO: Vendor invoice number identifier 6. INVOICE TO: Email: CA911Invoicing@caloes.ca.gov Cal OES, CA 9-1-1 Branch 601 Sequoia Pacific Blvd, MS-911 Sacramento, CA 95811-0231 7. SHIP TO (1ST LINE): County Code, PSAP Number, Service Number, Vendor Abbreviation 8. SHIP TO: PSAP location address of delivery service 9. SYSTEM ACCEPTANCE DATE: the date installation is complete and confirmed accepted 10. PSAP LOCATION NAME: PSAP Name referenced by State 11. SERVICE TYPE: Category name Funding Request 12. SERVICE PERIOD: date & month through date & month (ex: 01 JULY-31 JULY) 13. EQUIPMENT: One time Equipment total charge 14. LABOR: One time Labor total charge 15. OTHERS: Input One Time total charges name beyond Equipment, Labor, Maintenance 16. TAXES/SURCHARGES: One-time total charge for Taxes/Surcharges 17. NEW CHARGES: Total invoice charges to paid for current invoice 18. $_____MONTHLY: Monthly amount for invoice when maintenance starts 19. TERMS: the current invoice cycle of the total cycle for maintenance 20. EFFECTIVE ____ TO EXPIRED ______: Date maintenance starts and date maintenance ends Page 206 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 44 of 49 March 26, 2020 21. TOTAL OF APPROVED TD 288: Total amount the TD 288 has approved 22. DESCRIPTION: detailed description of service including identifier ID relation 23. QUANTITY: Unit of measure/ # of services 24. UNIT PRICE: U.S. dollar amount per quantity 25. LINE TOTAL: Per Specific Service total amount 26. TOTAL: New Current Charges for this invoice Page 207 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 45 of 49 March 26, 2020 SOW - ATTACHMENT 2 - PSAP LIST California Statewide Statistics and PSAP Location Information Upon request, the Contractor shall be provided with the most current PSAP list by Cal OES. Page 208 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 46 of 49 March 26, 2020 SOW - ATTACHMENT 3 – SAMPLE SOW TEMPLATE This document is a template that will serve as a starting point to develop the SOW that will be submitted to the PSAP to support ordering CPE. A. Cover Page (should include the following) 1. Contractor Name 2. PSAP Name 3. Project name 4. Table of Contents 5. Include all of the major categories and subcategories B. Body 1. Overview a. An overall statement about the purpose of the SOW and scope of the project b. A list of all equipment, including quantities, individual prices for hardware, and evergreen service monthly costs c. A description of the equipment that is to be provided by the PSAP d. Specific equipment that will not be provided by the Contractor to ensure that the PSAP and the State understand what has been specifically excluded from the project e. Any other general issues. 2. Design a. System overview including a description of the equipment and services provided. This includes but is not limited to network configuration and interfaces, gateways, UPS, logging recorders, interfaces to other equipment and any other pertinent system elements b. Description of the network elements to be connected to the system including NG9-1-1 trunks, administration lines, ring-down lines, direct connects, remote maintenance lines, contact closures, and any other network connections that will be configured in the system c. Integration Requirements to other equipment such as CAD, radio, and time syncing equipment; 3. Change Requests a. Change orders will be allowed upon approval from both the PSAP and the CA 9-1-1 Branch. Include a copy of vendor change order form. 4. Acceptance Testing a. An Acceptance Test Plan with a clear description of the acceptance testing process that is consistent with the Contract Requirements including the System Acceptance Checklist (Checklist form will be made available in the Chapter III Funding Manual) b. A description of how MACs are handled once Acceptance has been signed off by the authorized PSAP representative. 5. Names of Responsible Parties and Contact Information a. Names and contact information of all the responsible parties from the Contractor, PSAP, and the CA 9-1-1 Branch. 6. Responsibilities a. Contractor responsibilities Page 209 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 47 of 49 March 26, 2020 b. PSAP responsibilities c. CA 9-1-1 Branch responsibilities. 7. PSAP admin/business line profile that will be integrated into the CPE, as well as 9-1-1 bandwidth (NG 9-1-1 Trunk). 8. Installation Schedule a. List of key dates beginning with the estimated funding approval date from the CA 9-1-1 Branch. Revised schedule from the Contractor will be required once TD-288 is issued. b. Include site readiness date, installation date, system in-service date, anticipated PSAP acceptance date and any other dates pertinent to the success of the project. 9. Evergreen Service Provisions a. Acknowledgement of the terms of the evergreen service provisions of the Contract. 10. Evergreen Plan a. Remote maintenance/update processes b. Response times for critical, major, and minor outages c. 24/7 contact numbers to report trouble 11. Training Plan: a. A description of the training that will be provided to the PSAP personnel b. List of the user manuals/websites that will be provided by the Contractor; c. List of the technical service manuals/websites that will be provided by the Contractor. 12. SOW Approval a. A sign-off page for the authorized PSAP representative to approve the content of the SOW. 13. Appendices a. Site Certification Document: The document that describes the building and environmental changes that the PSAP must make to accommodate the new or updated system b. Floor Plan: Diagrams of the room where the workstations will be deployed, and the NG9-1-1 trunk point of ingress at the PSAP c. Pricing and Terms: A copy of the detailed quote from the Contractor for the project that includes quantities, and monthly evergreen costs d. Forms: Samples of the forms that will be used for the project such as change request forms, issue communications forms and any other applicable forms Page 210 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 48 of 49 March 26, 2020 SOW - ATTACHMENT 4 – CONTRACTOR’S LICENSE INFORMATION (Installation Services Only) The Contractor shall obtain, at their own expense, all license(s) and permit(s) required by law for accomplishing any work required in connection with this Contract. The Contractor shall complete the applicable Contractor’s license information below in accordance with the Contractor’s State License Board, Department of Consumer Affairs. At a minimum, a California C-7 license is required prior to commencement of work which may include the installation of cable and wiring and electrical modification. Contractors or subcontractors performing cable and/or wiring installation work or structural modifications are required to have the appropriate State Contractor’s license. The license must be in the name of the company or the name of the “qualifying individual” of the company. It is the Contractor’s responsibility to ensure that the Contractor and/or Subcontractor maintain a current CA C-7 license during the term of the Contract and may be verified by the State at any time. The Contractor may not perform any work at or with a PSAP without valid license. CONTRACTOR: Class _________________________________ License No: __________________ Licensee: _________________________________ Expiration Date: ___________________ Class _________________________________ License No: ___________________ Licensee: _________________________________ Expiration Date: ___________________ Note: Contractor (Firm’s Name or a Responsible Managing Employee) must be licensed in addition to all subcontractor(s) performing under this Contract. SUBCONTRACTOR 1 Class _________________________________ License No: _________________ Licensee: _________________________________ Expiration Date: ___________________ Relationship of Licensee to Contractor: _______________________________________________ SUBCONTRACTOR 2 Class _________________________________ License No: __________________ Licensee: _________________________________ Expiration Date: ___________________ Relationship of Licensee to Contractor: ______________________________________________ Page 211 of 444 CA Governor’s Office of Emergency Services Contract Number: 6138-2020 A3 Contractor Name: AT&T Page 49 of 49 March 26, 2020 SOW – ATTACHMENT 5 – PROJECT MILESTONE REPORT Page 212 of 444 March 26, 2020 Disclaimer: The original version and any subsequent addendums of the RFP released by the Procurement Official, remain the official version. In the event of any inconsistency between the Bidder’s versions, articles, attachments, specifications or provisions which constitute the Contract, the official State version of the RFP in its entirety shall take precedence. Issued by: STATE OF CALIFORNIA California Governor's Office of Emergency Services EXHIBIT 21, TECHNICAL REQUIREMENTS CA Next Generation 9-1-1 - Call Processing Equipment Page 213 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements RFP 6104-2019 CA NG9-1-1 CPE Services CA NG9-1-1 CPE Services Instructions Bidders shall submit their narrative response to describe how the Technical Requirements in the 21.0-Technical Requirements Tab are met per the instructions in RFP Part 1, Technical Requirements instructions and submission requirements. Bidder shall submit their narrative response in the form provided in SOW Exhibit 20 - Technical Requirement Response Template. The Bidder is responsible to ensure their response for each narrative requirement in 21.0 is no more than two (2) pages. Bidder may submit no more than two (2) pages of diagrams to support each narrative response. The diagrams shall be a visual representation of the narrative response and will be limited to no more than 100 words per diagram, which will include diagram labels. Any typed information that goes beyond the 2nd page of the SOW Exhibit 20 - Technical Requirement Response Template will not be considered as a part of this evaluation. Bidder shall provide response, Yes "Y" or No "N", to the 'CPE Service Provider Agreement' on each tab, including the 21.0-Narrative Requirements. Page 214 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Narrative Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.0 Narrative Requirements Requirement Contractor must provide a written narrative for the requirements noted in Exhibit 21.0 and include with its Final Bid Submission in accordance with Section 6, Proposal/Bid Format and Submission Requirements CPE Service Provider Agrees to meet the Requirement YES/NO Interface Requirements 21.0.1 Describe how the CPE shall interface with the peripheral analog and digital equipment configurations already in place at all PSAPs. The description shall include the interface to CAD, radio, and logging recorder. Yes 21.0.2 Describe how CPE shall interface with phone system requirements for any PSAPs that have administrative telephone lines/ring down lines/business lines, PRI with caller ID, intercom, paging, local control circuits, PBX (IP or legacy), and Centrex with caller ID configured within the CPE at their PSAP. Description shall include how lines terminating on the CPE will be configured in a cloud CPE solution. Yes 21.0.3 Describe how the CPE shall support a direct interface to the NG911 network in California. Description shall include how CPE solution will interface to the PNSP and RNSP in a NENA i3 compliant format and how the connections will be redundant and geographically diverse. Yes 21.0.4 Describe the key success factors for CPE deployment, to include the initial deployment of the data center or native cloud solution interface with PNSP and RNSP. The description must include challenges and mitigation strategies that may impact the project's critical path. Yes Functionality Requirements 21.0.5 Describe how the CPE shall support long term recording as required by 21.2.4 and 21.2.5 of all circuits and positions at the data center or in the cloud solution. Describe how this will be accomplished via NENA i3 compliant SIP recording (SIPREC). Yes 21.0.6 Describe how the CPE shall be configured to avoid all single points of failure within the system and to ensure 99.999% availability. Description shall include integration of IP phone sets per 21.2.16 Yes Page 215 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Narrative Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.0.7 Describe how the system shall scale to meet expected demand over time, without limitation of any physical onsite hardware, human intervention, or system resources during disasters or high demand events while maintaining 99.999% availability for PSAPs deployed on your platform. Description shall include the maximum call volume the solution will support and how the proposed solution is scalable. Description shall include the role licensing agreements have in scalability, if applicable. Yes 21.0.8 Describe how system failures within an active operational component shall result in no loss of service or capability.Yes 21.0.9 Describe how CPE shall deliver and display secure NG9-1-1 traffic from RNSP and PNSP. Answer shall include accurate location information as well as supplemental data (Z axis coordinates, IoT streams, and video). Yes 21.0.10 Describe CPE Automatic Call Distribution (ACD) functionality at the PSAP. Describe how ACD supports NENA i3 call flow. Describe how ACD functions in conjunction with policy based routing. Yes System Monitoring Requirements 21.0.11 Describe how the CPE solution shall maintain trouble ticket e- bonding with RNSP and PNSP using standardized API developed by PNSP. Description shall include the integration of system monitoring with the data delivered from each RNSP and the PNSP. Description shall include how CPE solution mitigates accountability discrepancies between PNSP, RNSP, and CPE vendor. Yes 21.0.12 Describe how the system monitoring dashboard will display and report the health of the CPE solution. Description shall include how the dashboard will monitor the health of CPE solution and any PSAP equipment to ensure that SLAs are being met. Yes 21.0.13 Describe CPE dashboard and how it provides near real time CPE outage monitoring and reporting to support the description provided in 21.0.12. Description shall include a definition of near real time. Description shall also include how CA 9-1-1 Branch will access the dashboard monitor, this shall include statistical data, printable reports, and outage notifications with duration. Yes Technology Requirements Page 216 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Narrative Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.0.14 Describe if the CPE will be deployed as a cloud native or data center solution. The description shall include how the solution will utilize a geographically diverse, interconnected, redundant, and survivable platform within CONUS. The description shall include how the CPE will be dedicated to California with capability that provides 99.999% availability. Yes 21.0.15 Describe how all updates, fixes, upgrades, patches, etc. shall be executed in the cloud or data centers and pushed out to each PSAP in a manner consistent with evergreen support. Description shall include how your solution will roll back to previous versions if updates or changes cause unintended failures or performance problems at any PSAP. Yes 21.0.16 Describe how CPE will allow two-way communication with the 9-1- 1 caller's device for push/pull notification. This includes PSAP video initiation and text from 9-1-1. Yes 21.0.17 Describe how CPE will utilize an open standards methodology where ever possible. Description shall include how proprietary standards and or protocols are minimized within the proposed CPE system and shall address any limitations that may result from those proprietary components. Finally, where systems utilize customized solutions, the description shall identify the standard or protocol substituted and provide a descriptive narrative with regard to meeting NENA i3 standards. Yes 21.0.18 Bidder shall describe what happens to an active call when one side of system call handling (i.e. Data Center A) or a cloud instance goes offline. Bidder shall explain where the call reappears. Bidder shall also decribe what happens when an active call in ACD queue needs to route to another PSAP. Bidder shall include network diagrams. Yes 21.0.19 Bidder to describe how their solution and leadership is flexible to accommodate minor variations in functionality or PSAP needs that demonstrates a commitment to transparency within bidder's Exhibit 22 MRCs. For example: NENA updates the i3 specification for EIDO or requirement to comply with PSAP (Public Safety Answering Point) Credentialing Agency (PCA). Yes Page 217 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG 9-1-1 CPE Services 21.1 CPE Interface Requirements Requirement Mandatory CPE Interface Requirements The requirements are organized into General Requirements and then more specific requirements for each deployment method. CPE Service Provider Agrees to meet the Requirement YES/NO 21.1.1 CPE shall include a Graphical User Interface (GUI) that allows PSAP and/or call taker to personalize the CPE screen layout. Yes 21.1.2 CPE shall utilize the standardized API developed by the PNSP and the CA 9-1-1 Branch for all interfaces to deliver 9-1-1 traffic to the CPE. Yes 21.1.3 CPE shall support a NENA i3 compliant interface to the existing CAD system in operation at the PSAP. All non-i3 ready CAD systems require interface providing serial ALI spill functionality Yes 21.1.4 CPE shall connect to analog or digital audio interface devices at the PSAP to support consistent audio levels from radio and CPE for the call taker. Yes 21.1.5 CPE shall interface with PSAP phone system. This includes administrative telephone lines, ring down lines, business lines, PRI with caller ID, intercom, paging, local control circuits, PBX (IP or legacy), or Centrex, etc. with caller ID configured within the CPE at their PSAP. Yes 21.1.6 CPE shall support the interface developed by PNSP and RNSP as directed by the CA 9-1-1 Branch for delivery of all 9-1-1 traffic and must support the NENA i3 standard. Yes 21.1.7 CPE shall interface with CA 9-1-1 Branch's call data record solution via NENA i3 logging standard, or the CA 9-1-1 Branch defined XML standard. Yes 21.1.8 CPE shall ingest and display the CA 9-1-1 Branch statewide GIS data layers, or shape files, and shall provide an interface at the PSAPs request. CA 9-1-1 Branch shall provide database for updated GIS files in a NENA i3 compliant format via secure file or secure web interface. Yes Page 218 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG 9-1-1 CPE Services 21.1.9 CPE interface shall comply with NENA i3 standard for the delivery of callback and location information to CAD, mapping applications, and voice recorders. Yes 21.1.10 CPE shall utilize CA 9-1-1 Branch provided NG9-1-1 trunk for the transport of any 9-1-1 traffic Yes 21.1.11 CPE shall interface with the peripheral equipment configurations already in place at all PSAPs: GIS, radio, logging recorder, etc.Yes 21.1.12 CPE shall provide a SIPREC compliant interface for on site logging recorder at the PSAP.Yes 21.1.13 CPE shall interface with the State PSAP Credentialing Agency (PCA), the top-level certificate authority for NG9-1-1 in California, which is administered by the CA 9-1-1 Branch and is implemented by the PNSP. Yes 21.1.14 CPE shall display caller ID from any non 9-1-1 line if provided by the originating service provider.Yes 21.1.15 CPE shall develop a Basic API that aligns to cost workbook element 22.3.5 at the request of the PSAP with direction from Cal OES to support a one time 1-3 month API development outside of NENA i3 and SOW requirements. Cal OES will be the sole arbiter to determine if the API needed is basic, intermediate, or complex. Yes 21.1.16 CPE shall develop an intermediate API that aligns to cost workbook element 22.3.6 at the request of the PSAP with direction from Cal OES to support a one time 3-6 month API development outside of NENA i3 and SOW requirements. Cal OES will be the sole arbiter to determine if the API needed is basic, intermediate, or complex. Yes 21.1.17 CPE shall develop a Complex API that aligns to cost workbook element 22.3.7 at the request of the PSAP with direction from Cal OES to support a one time 6-9 month API development outside of NENA i3 and SOW requirements. Cal OES will be the sole arbiter to determine if the API needed is basic, intermediate, or complex. Yes Yes21.1.18 CPE shall interface with legacy Centralized Automated Message Accounting (CAMA) trunks at PSAP. The Interface shall convert CAMA into an IP based signaling transmitted over a NG 9-1-1 trunk that can be processed in the Cloud by the CPE solution. Page 219 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG 9-1-1 CPE Services Yes Yes Yes Yes Yes 21.1.21 CPE shall be tested and validated for CAMA interface at the CA 9-1-1 Branch NG9-1-1 Lab prior to installation at a PSAP. Testing will be conducted by the Contractor in conjunction with the CA 9-1-1 Branch. Lab test results shall be provided to the CA 9-1-1 Branch upon request. The CA 9-1-1 Branch shall be the owner of all reports. 21.1.22 CPE CAMA interface shall be installed within 60 days of notification the CA 9-1-1 Branch. 21.1.23 CPE CAMA interface shall be removed within 60 days of notification the CA 9-1-1 Branch. 21.1.19 CPE shall interface with CAMA and NG 9-1-1 trunk simultaneously. 21.1.20 When directed by CA 9-1-1 Branch, CPE shall interface with CAMA, and NG 9-1-1 trunk simultaneously. Page 220 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.2 CPE Functionality Requirements Requirement Mandatory CPE Functionality Requirements The requirements are organized into General Requirements and then more specific requirements for each deployment method. CPE Service Provider Agrees to meet the Requirement YES/NO 21.2.1 CPE shall generate NENA i3 Call Detail Record (CDR) automatically, and store all available information pertaining to all 9-1-1 traffic, on a server that allows access by or connectivity for state-wide reporting purposes. Yes 21.2.2 CPE shall provide automatic call distribution (ACD), configurable by the PSAP. ACD functionality shall support interactive voice response (IVR) Yes 21.2.3 CPE shall require users to manually log-on with a username/password combination. Two factor authentication must be provided as an option at no additional cost. Password parameters shall be flexible to meet PSAP needs. CA 9-1-1 Branch will validate two factor authentication method. PSAP shall have administrative rights controlling all account credentialing. Yes 21.2.4 CPE shall include audio, text, and video logging recording at the data center or in the cloud. Recording shall include separate recordings for operator and caller. Shall include active recording methodology of all circuits and positions via NENA i3 compliant SIPREC. Yes 21.2.5 CPE shall provide end-to-end encryption for all recordings, including voice, text, and video. Access to all recordings shall be controlled by the PSAP that owns the recording. Yes 21.2.6 CPE shall display live streamed video from IoT, caller, or supplemental data source. Yes 21.2.7 CPE shall allow the call-taker to initiate the viewing of video via a process initiated and controlled by the PSAP. Video should start recording immediately during transmission, but the call-taker should not be required to initiate viewing in order for the recording to begin. Yes 21.2.8 CPE shall allow the call-taker to stop viewing the video even while the video is still recording Yes 21.2.9 CPE shall allow call taker to send video to any PSAP authorized first responder or recipient outside of dispatch with a device that can play video Yes 21.2.10 CPE short term video storage shall be configurable by the PSAP. Video shall be locked so that it can only be viewed by authorized users. Additionally, meta data shall be made readily available to the PSAP in order to see a list of all viewers of any video. Yes Page 221 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.2.11 CPE shall store all audio and video recordings in the cloud or at data center. Storage term shall be configurable by the PSAP for up to 180 days. System shall allow PSAP to auto-download data at PSAP defined intervals or as one time downloads. CPE shall also provide downloadable access and interface to the PSAP for local storage. Yes 21.2.12 CPE solution shall not cap the amount of storage needed to support 21.2.11 Yes 21.2.13 CPE shall support instant recall recorder (IRR) play back of the recording of any call from an assigned workstation. The IRR shall interface with the existing operating environment within the PSAPs. Yes 21.2.14 CPE system shall provide the PSAP with configurable recording retention for IRR. System shall provide a minimum of 8 hours of talk time. Yes 21.2.15 CPE shall deliver caller ID during a transfer from a 9-1-1 line to any non-9-1-1 line.Yes 21.2.16 CPE system shall provide IP phone set(s), if requested by PSAP Yes 21.2.17 CPE shall allow for a visual display of the caller's telephone number and it shall be viewable at the workstation. At minimum, the display needs to meet the NENA i3 compliant standards for ANI display and all future NENA i3 standards at no additional cost. Yes 21.2.18 CPE shall accept, display, and send text-to-911 translation, including languages with non-English characters.Yes 21.2.19 CPE shall support the current operational needs of the PSAP as identified in the NENA i3 standard and the SOW.Yes 21.2.20 Any CPE system failure within an active operational component shall result in no loss of service or capability.Yes 21.2.21 CPE shall deliver location information to CAD and mapping applications via an IP connection and/or serial connection.Yes 21.2.22 CPE shall have adjustable audio volume control at the individual workstation.Yes 21.2.23 CPE shall ingress secure emergency voice, text, and video messaging directly from the PNSP and RNSP, including the delivery of accurate emergency calling party location information for all 9- 1-1 traffic. Yes 21.2.24 CPE shall display the CA 9-1-1 Branch statewide alert and warning system. Yes 21.2.25 CPE shall provide abandoned call detail Yes 21.2.26 CPE shall incorporate time synchronization. Shall sync up with both the RNSP and PNSP as well as the PSAP with a stratum 0 clock in UTC format. Yes 21.2.27 CPE shall define a list of phone numbers that can be entered into the solution and be routed to a specific position or login credential to support local 9-1-1 system testing. Yes Page 222 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.2.28 CPE shall provide one-button callback. Yes 21.2.29 CPE shall provide complete call progress detection including but not limited to idle, ringing, dial tone, ringback, and busy.Yes 21.2.30 CPE shall provide configurable outbound caller-ID and outbound text-ID to the PSAP.Yes 21.2.31 CPE shall provide automated abandoned call-back and text- back Yes 21.2.32 CPE shall have one button transfer capability to other PSAPs, configurable upon request. All transfers must occur across NG9-1-1 trunks, with location information. CPE shall transfer 9-1-1 calls to all CA PSAPs, off-net PSAPs, as well as to other states in the US. Yes 21.2.33 CPE shall provide local conferencing consisting of six (6) or more internal and/or external parties (including originator). The system’s conferencing functionality shall allow the conference call to continue when the originating calling party disconnects. Yes 21.2.34 CPE shall provide distinct audible ringing options Yes 21.2.35 CPE shall provide speed dial functionality for both hold conference and no-hold conference for 9-1-1 calls as well as non- emergency calls Yes 21.2.36 CPE shall allow call taker muting capability during conference or transfer Yes 21.2.37 CPE shall support TDD/TTY functionality until no longer required by the FCC and upon the direction of the CA 9-1-1 Branch.Yes 21.2.38 Contractor to provide an on-line reference manual, users manual, help guide, live chat, or similar feature to PSAP. All reference materials must be continually updated to reflect CPE system updates and new functionality. Yes 21.2.39 Call taker screen layout shall be automatically locked when the user logs in as ready.Yes 21.2.40 A designated user shall have the ability to restore to last saved screen layout as well as default screen layout while making modifications. Yes 21.2.41 CPE shall display the information of at least the last 10 calls released at the answering workstation, configurable by the PSAP Yes 21.2.42 CPE shall provide the user with call holding as well as call parking (exclusive/non-exclusive hold) capability Yes 21.2.43 Users with appropriate system permissions shall have the ability to silently listen to another user's telephone conversation from their workstation. Such action shall not cause any audio or visual disturbance at the monitored answering station. Yes Page 223 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.2.44 CPE shall provide supervisors or authorized users the ability to barge into an existing call with one click functionality Yes 21.2.45 Users with appropriate system permissions shall have the ability to temporarily remove themselves from a ring group (call queue) in order to conclude a previous call or perform another task such as radio dispatch, while remaining logged on. Yes 21.2.46 CPE shall enable two-way communication with the 9-1-1 caller's device for push/pull notifications and text from 9-1-1.Yes 21.2.47 CPE shall present historical details linked to the calling number. This feature shall accommodate information that call-takers have saved from previous calls, but should also include system generated (machine learned) information. Yes 21.2.48 CPE shall ingest and display any third party or State provided data via API within 6 months of notification from the CA 9-1-1 Branch.Yes 21.2.49 Browser based CPE shall work on a CA 9-1-1 Branch approved web browser based on system performance and security requirements. Yes 21.2.50 Non-Browser based CPE shall accessed through an application that can operate on any standard PC.Yes 21.2.51 CPE shall ingress, display, and send Real Time Text (RTT) Yes 21.2.52 CPE shall provide role based/skillset based profiling for call takers, and the ability to change roles without requiring logout and sign in. Yes 21.2.53 CPE shall provide call taker the ability to flag, create, and send out mis-routed 9-1-1 call reports electronically Yes 21.2.54 CPE shall support maximum 10 second system operation start-up from the time user ID and password are entered.Yes 21.2.55 CPE shall provide MIS functionality and shall provide call taker details. CPE shall provide remote access to PSAP defined MIS metrics. Yes 21.2.56 CPE shall interface with a universal log in service at PSAP if available. Universal log in shall apply across CAD or other platforms as specified by the PSAP, and support where available. Yes 21.2.57 CPE shall provide status indication ("ready/not ready/wrap up") at the workstation level, number of status states to be configurable by PSAP. Yes 21.2.58 CPE shall allow PSAP personnel to play back a pre-recorded PSAP message during the 9-1-1 call Yes 21.2.59 CPE shall provide a visual indication to the call taker when 9-1-1 traffic is delivered via a policy based route.Yes 21.2.60 CPE bidder shall provide reader boards to PSAPs upon request. Yes Page 224 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.2.61 CPE solution shall provide an integrated mapping application Yes Page 225 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.3 CPE System Monitoring Requirements Requirement Mandatory CPE System Monitoring Requirements The requirements are organized into General Requirements and then more specific requirements for each deployment method. CPE Service Provider Agrees to meet the Requirement YES/NO 21.3.1 CPE shall provide near real-time performance data, to be monitored by CA 9-1-1 Branch as well as PSAPs upon request.Yes 21.3.2 Performance data shall include documented Mean Time Between Failure (MTBF) or Mean Time To Repair (MTTR) that may impact the availability of the system to deliver traffic Yes 21.3.3 Technical Service Bulletin (TSB) shall be provided to CA 9-1-1 Branch and PSAP for any update, patch, or bug fix.Yes 21.3.4 Contractor shall establish a network operation center (NOC) that includes but is not limited to alarming, reporting, monitoring, managing, and supporting CPE on a 24/7/365 basis, down to the workstation level. Yes 21.3.5 Contractor shall provide trouble ticket log that is visible to CA 9-1- 1 Branch, originating PSAP, RNSP, and PNSP 24/7/365 Yes 21.3.6 CPE shall support trouble ticket ebonding with RNSP and PNSP, and shall maintain trouble ticket ebonding Yes 21.3.7 The CPE solution shall provide a dashboard to display and report the health of the CPE solution. The dashboard will monitor the health of the CPE solution and any PSAP equipment to ensure that SLAs are being met. Monitoring shall be real time or near real time. Yes 21.3.8 CPE shall be subject to CA 9-1-1 Branch approved or contracted third party verification to ensure cloud/data center space and resources have been properly dedicated to California and meet physical and cyber security requirements. Yes Page 226 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.3.9 Contractor shall notify the CA 9-1-1 Branch when any stop-clock condition exists, within 60 minutes of stop-clock discovery.Yes Page 227 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.4 CPE Technology Requirements Requirement Mandatory CPE Technology Requirements The requirements are organized into General Requirements and then more specific requirements for each deployment method. CPE Service Provider Agrees to meet the Requirement YES/NO 21.4.1 CPE shall be deployed as a geographically diverse interconnected platform, housed within a minimum of two Tier 3 or better data centers or as a native cloud solution within CONUS, and as a dedicated single tenant to California with demonstrated capability that provides 99.999% availability. Yes 21.4.2 Any data center or cloud instance that is used to house the CPE shall be designed in a redundant, survivable manner and have multiple geographically diverse connections to the PNSP/RNSP. Yes 21.4.3 CPE shall be IP-based and shall fully comply with current and future NENA i3 standards for NG911.Yes 21.4.4 CPE shall utilize end-to-end IP connectivity (NG9-1-1 trunk), procured by CA 9-1-1 Branch from the PNSP/RNSP with a minimum of two diverse connections to each POI and data center. Yes 21.4.5 CPE shall interface with PNSP/RNSP at a minimum of two (2) logically and physically diverse locations and support 99.999% availability Yes 21.4.6 CPE shall be verified through testing at the CA 9-1-1 Branch NG9-1-1 Lab prior to issuing SOW to the PSAP for CPE purchase. Testing will be conducted by the Contractor in conjunction with the CA 9-1-1 Branch. Lab test results shall be provided to the CA 9-1-1 Branch upon request. The CA 9-1-1 Branch shall be the owner of all reports. Yes 21.4.7 All updates, fixes, upgrades, patches, etc. shall be executed in the cloud/data centers and pushed out to each PSAP in a manner consistent with traditional cloud-based evergreen software support. Yes 21.4.8 All updates, fixes, upgrades, patches, etc. shall be deployed in the cloud/data center, ensuring that 100% of the PSAPs are operating on the same cloud/data center software and firmware version. Maximum 15 day soak period for first customer application. Yes Page 228 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.4.9 All updates, at the discretion of and coordinated by the CA 9- 1-1 Branch, shall be tested and accepted in the CA 9-1-1 Branch NG9-1-1 Lab prior to deployment at the PSAP. Yes 21.4.10 All updates that have been tested and accepted by the CA 9- 1-1 Branch NG9-1-1 Lab shall be deployed at all PSAPs supported by the Contractor within 14 calendar days of successful testing. This includes CPE that my have been tested and accepted by the CPE manufacturer working with the CA 9-1-1 Branch, independent of the contractor. Yes 21.4.11 CPE software shall, within 30 minutes of notification by the CA 9-1-1 Branch, roll back to prior version if updates or patches cause unintended failures or performance problems at the PSAP. Yes 21.4.12 Workstations shall support the minimum memory and processing capability to support CPE software and shall be equipped with all necessary audio and video interface equipment, including but not limited to: keyboard, mouse, speakers, audio integration device, keypad dialer, arbitrator, and minimum 22 inch flat panel monitors. Yes 21.4.13 Workstation, along with any other Contractor supplied peripheral hardware at each workstation shall be replaced every five (5) years, at minimum. PSAP is eligible for full system training at this time. Yes 21.4.14 Bidder shall supply PSAP with monitor at a minimum of 22" and a maximum of 50"Yes 21.4.15 If no PNSP/RNSP network degradation is present, all audio input/output from the CPE shall meet MOS score requirements. At five (5) minute intervals, via third party verification, 99% of the MOS measurements shall exceed 2.6 and 90% shall exceed 3.8. Degradation caused by PNSP/RNSP network shall not impact CPE MOS score. Yes 21.4.16 CPE hardware components installed at the PSAP shall be nonproprietary, with the sole exception of audio control devices, and shall support standard hardware interfaces. Yes 21.4.17 CPE shall include a workstation UPS and shall provide a minimum of 15 minutes of power to each workstation. CPE provider shall provide 2 hour backroom UPS. Yes Page 229 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.4.18 All workstation peripherals shall be supplied by the Contractor and supported at the workstation: auxiliary keypad dialers, arbitrators, keyboard, mouse, and headset box. Yes 21.4.19 CPE shall connect to analog or digital audio interface devices at the PSAP, as directed by the PSAP.Yes 21.4.20 CPE shall not directly connect to the public internet at the PSAP. CPE shall ensure that any public data source is connected via a secure, controlled interface at data center/cloud. At a minimum the connection should address application layer inspection, secure flows, intrusion prevention, and intrusion detection. Yes 21.4.21 Contractor shall provide cabling at install, which may include cable paths through floors, walls, and ceilings.Yes 21.4.22 Cloud native solution shall utilize a cloud service provider that holds a verified FEDRAMP certification. Data center solution shall utilize a geographically diverse interconnected platform, housed within a minimum of two Tier 3 or better data centers. Yes 21.4.23 CPE shall ingress, handle, and display all incoming 9-1-1 traffic and supplemental information (i.e. location and/or caller information) in a manner that is compliant with all NENA i3 standards Yes 21.4.24 System availability shall be 99.999% regardless of the level of response required. CPE shall meet worst-case scenarios or dynamically expand without limitation of any physical onsite hardware, human intervention, or system resources (CPU, channels, etc.) during disasters or high demand events. Yes 21.4.25 Contractor shall provide on-site technical support personnel to resolve technical issues at the PSAP (workstations).Yes 21.4.26 CPE shall ingest and display Z coordinates from RNSP and PNSP when they become available Yes 21.4.27 CPE shall have secure connectivity, trust and identity, and threat defense from cloud or data center to the call-taking workstations Yes 21.4.28 CPE shall ingest, display, and utilize any standards-based information that can enrich the 911 call: viewing CCTV, street- level cameras, or IoT sensor data, upon initiation by the call taker. Yes 21.4.29 CPE shall include any universal sensor integration with open API, including seismic, weather, smoke detection, and traffic information. Yes Page 230 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.4.30 CPE shall include secured firewalling of data transmission of IoT data streams. IoT Data streams shall be encrypted in transit.Yes 21.4.31 CPE shall be designed to industry standard and FCC best practices, including the NENA i3 standards Yes 21.4.32 CPE shall utilize an open standards methodology where applicable. Yes 21.4.33 Contractor shall ensure that proprietary standards and or protocols are minimized within the proposed CPE system. Where systems utilize customized solutions, the Contractor shall identify the standard or protocol substituted and provide a narrative with regard to meeting the NENA i3 requirement. Yes 21.4.34 Data center/cloud shall comply with NENA i3 cyber security standards and industry best practices for cyber security Yes 21.4.35 CPE system shall support BGP interfaces to PNSP and RNSP and comply with the IP addressing scheme provided by CA 9-1-1 Branch Yes 21.4.36 CPE shall support a logical connection over existing NG 911 trunk(s) that supports call delivery from cloud/data center to PSAP Yes 21.4.37 CPE shall support all elements of NENA i3. Any components that are implemented within the CPE shall not compromise the ability to support NENA i3 and the ability for the PNSP or RNSP to deliver the call to the PSAP, or to support transfers from one PSAP to another, regardless of CPE vendor. Yes 21.4.38 CPE shall implement new industry standards, including NENA i3 based on the timeline and deployment process as directed by the CA 9-1-1 Branch. For most, but not necessarily all updates, the CA 9-1-1 Branch will direct a minimum timeline of 6 months. Yes 21.4.39 CPE shall process and deliver all potential NENA i3 9-1-1 traffic from multiple NG 9-1-1 service providers.Yes 21.4.40 CPE testing in the Cal OES NG9-1-1 lab shall be completed within 10 working days from start of testing, as directed by the CA 9-1-1 Branch. Yes Page 231 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.4.41 Cloud solution must include isolated, independent clusters of data centers located in close enough proximity to ensure extremely low latency (ability to perform synchronous data replication) and the ability for each cluster to continue operation in the case of a data center failure. Data center solution must be built in a fully redundant manner, where the loss of one data center does not affect the call takers functionality. Yes 21.4.42 Data centers and/or data centers used in a cloud solution within a geographic area must have independent power infrastructure. Yes 21.4.43 CPE shall have the ability to recognize multiple calls originating from the same geographic area and will provide the PSAP with a solution to process the calls based on operational needs. Yes 21.4.44 All servers, routers, firewalls, and other network elements at the PSAP shall have the current version or patch, deployed within 5 days of discovery of the need for updating. Yes 21.4.45 All workstations shall have current operating system and software version, deployed within 30 days of discovery of the need for updating. CPE vendor shall allow PSAP to control the update schedule such that no more than 25% of the workstations are updated at the same time. CPE vendor shall also allow PSAP to set the update window based on operational needs. Yes 21.4.46 All 9-1-1 traffic must be transferred using PNSP or RNSP core services, per NENA i3 standards.Yes 21.4.47 Data center/cloud solution shall not negatively impact the ability of the CA 9-1-1 Branch to acquire CJIS/CLETS certification of the network. Yes 21.4.48 CPE shall geospatially transfer to any primary or secondary PSAP based on PSAP boundary file. CPE shall offer a preferred transfer PSAP using geospatial data. Yes 21.4.49 CPE shall support data compression and other tools needed to meet bandwidth requirements. Yes 21.4.50 CPE shall support a busy hour of 475 calls or less with a 5 Mbps connection. Yes 21.4.51 CPE shall support a busy hour of 476 calls or more with a 50 Mbps connection. Yes 21.4.52 CPE shall refresh location information received from PNSP or RNSP every 2 seconds starting from the time PNSP or RNSP delivers the call to the CPE. The refresh rate shall be configurable, in 2 second intervals, by the PSAP. Yes Page 232 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements RFP 6104-2019 CA NG9-1-1 CPE Services CA NG9-1-1 On-Premises CPE System Instructions Bidder shall provide response, Yes "Y" or No "N", to the 'CPE Service Provider Agrees to Meet the Requirement' for each requirement on tab 21.5 through 21.10. Page 233 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG 9-1-1 CPE Services Requirement Mandatory CPE Interface Requirements CPE Service Provider Agrees to meet the Requirement YES/NO 21.5.1 CPE shall include a Graphical User Interface (GUI) that allows PSAP and/or call taker to personalize the CPE screen layout. Yes 21.5.2 CPE shall utilize the standardized API developed by the PNSP and the CA 9-1-1 Branch for all interfaces to deliver 9-1-1 traffic to the CPE. Yes 21.5.3 CPE shall support a NENA i3 compliant interface to the existing CAD system in operation at the PSAP. All non-i3 ready CAD systems require interface providing serial ALI spill functionality. Yes 21.5.4 CPE shall connect to analog or digital audio interface devices at the PSAP to support consistent audio levels from radio and CPE for the call taker. Yes 21.5.5 CPE shall interface with PSAP phone system. This includes administrative telephone lines, ring down lines, business lines, PRI with caller ID, intercom, paging, local control circuits, PBX (IP or legacy), or Centrex, etc. with caller ID configured within the CPE at their PSAP. Yes 21.5.6 CPE shall support the interface developed by the state's NG 9-1-1 service providers, as directed by the CA 9-1-1 Branch for delivery of all 9-1-1 traffic and must support the NENA i3 standard. Yes 21.5.7 CPE shall interface with CA 9-1-1 Branch's MIS reporting solution via NENA i3 logging standard and 9-1-1 Branch defined call data record format. Yes 21.5.8 CPE interface shall comply with NENA i3 standard for the delivery of call data to CAD, mapping applications, and voice recorders where applicable. Yes 21.5.9 CPE shall utilize CA 9-1-1 Branch provided CAMA and NG9-1-1 trunk for the transport of any 9-1-1 traffic.Yes 21.5.10 CPE shall interface with the peripheral equipment configurations already in place at all PSAPs: GIS, radio, logging recorder, etc.Yes 21.5.11 CPE shall provide a SIPREC or serial compliant interface for on site logging recorder at the PSAP.Yes 21.5 On-premises CPE Interfaces Requirements Page 234 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG 9-1-1 CPE Services 21.5.12 CPE shall interface with the State PSAP Credentialing Agency (PCA), the top-level certificate authority for NG9-1-1 in California, which is administered by the CA 9-1-1 Branch and is implemented by the NG 9-1-1 service providers. Yes 21.5.13 CPE shall display caller ID from any non 9-1-1 line if provided by the originating service provider.Yes 21.5.14 CPE shall develop a Basic API that aligns to cost workbook Tab. 22.8, line item 13 at the request of the PSAP with direction from Cal OES outside of NENA i3 and SOW requirements. The API needed (basic, intermediate, or complex) will be mutually agreed upon between Cal OES and the vendor. Yes 21.5.15 CPE shall develop an Intermediate API that aligns to cost workbook Tab. 22.8, line item 14 at the request of the PSAP with direction from Cal OES outside of NENA i3 and SOW requirements. The API needed (basic, intermediate, or complex) will be mutually agreed upon between Cal OES and the vendor. Yes 21.5.16 CPE shall develop a Complex API that aligns to cost workbook Tab. 22.8, line item 15 at the request of the PSAP with direction from Cal OES outside of NENA i3 and SOW requirements. The API needed (basic, intermediate, or complex) will be mutually agreed upon between Cal OES and the vendor. Yes Page 235 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services Requirement CPE Functionality Requirements Requirement Type CPE Service Provider Agrees to meet the Requirement YES/NO 21.6.1 CPE shall generate NENA i3 Call Detail Record (CDR) automatically, and store all available information pertaining to all 9-1-1 traffic, on a server that allows access by or connectivity for state-wide reporting purposes. Mandatory Yes 21.6.2 CPE shall provide automatic call distribution (ACD), configurable by the PSAP. ACD functionality shall support interactive voice response (IVR).Mandatory Yes 21.6.3 CPE shall require users to manually log-on with a username/password combination. Two factor authentication must be provided as an option at no additional cost. Password parameters shall be flexible to meet PSAP needs. CA 9- 1-1 Branch will validate two factor authentication method. PSAP shall have administrative rights controlling all account credentialing. Mandatory Yes 21.6.4 CPE shall support Instant Recall Recorder (IRR) play back of the recording of any call from an assigned workstation. The IRR shall interface with the existing operating environment within the PSAPs. Mandatory Yes 21.6.5 CPE system shall provide the PSAP with configurable recording retention for IRR. System shall provide a minimum of 8 hours of talk time.Mandatory Yes 21.6.6 CPE shall deliver caller ID during a transfer from a 9-1-1 line to any non-9-1-1 line. Mandatory Yes 21.6.7 CPE system shall provide IP phone set(s), if requested by PSAP. Mandatory Yes 21.6.8 CPE shall allow for a visual display of the caller's telephone number and it shall be viewable at the workstation. At minimum, the display needs to meet the NENA i3 compliant standards for ANI display and all future NENA i3 standards at no additional cost. Mandatory Yes 21.6.9 CPE shall accept, display, and send text-to-911 translation, including languages with non-English characters for PSAPs with integrated text.Mandatory Yes 21.6.10 Any CPE system failure within an active operational component shall result in no loss of service or capability.Mandatory Yes 21.6.11 CPE shall deliver location information to CAD and mapping applications via an IP connection and/or serial connection.Mandatory Yes 21.6.12 CPE shall have adjustable audio volume control at the individual workstation. Mandatory Yes 21.6.13 CPE shall provide abandoned call detail. Mandatory Yes 21.6.14 CPE shall incorporate time synchronization. Shall sync up with the state NG 9-1-1 service provider as well as the PSAP with a stratum 0 clock in UTC format. Mandatory Yes 21.6.15 CPE shall provide one-button callback. Mandatory Yes 21.6.16 CPE shall provide complete call progress detection including but not limited to idle, ringing, dial tone, ringback, and busy.Mandatory Yes 21.6.17 CPE shall provide configurable outbound caller-ID and outbound text-ID to the PSAP.Mandatory Yes 21.6.18 CPE shall provide automated abandoned call-back and text-back. Mandatory Yes 21.6.19 CPE shall have one button transfer capability to other PSAPs, configurable upon request. All transfers must occur across CAMA and/or NG9-1-1 trunks, with location information. Mandatory Yes 21.6 On-Premises Functionality Requirements Page 236 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.6.20 CPE shall provide local conferencing consisting of six (6) or more internal and/or external parties (including originator). The system’s conferencing functionality shall allow the conference call to continue when the originating calling party disconnects. Mandatory Yes 21.6.21 CPE shall provide distinct audible ringing options. Mandatory Yes 21.6.22 CPE shall provide speed dial functionality for both hold conference and no-hold conference for 9-1-1 traffic as well as non-emergency traffic.Mandatory Yes 21.6.23 CPE shall allow call taker muting capability during conference or transfer. Mandatory Yes 21.6.24 CPE shall support TDD/TTY functionality until no longer required by the FCC and upon the direction of the CA 9-1-1 Branch.Mandatory Yes 21.6.25 Contractor to provide an on-line reference manual, users manual, help guide, live chat, or similar feature to PSAP. All reference materials must be continually updated to reflect CPE system updates and new functionality. Mandatory Yes 21.6.26 Call taker screen layout shall be automatically locked when the user logs in as ready.Mandatory Yes 21.6.27 A designated user shall have the ability to restore to last saved screen layout as well as default screen layout while making modifications.Mandatory Yes 21.6.28 CPE shall display the information of at least the last 10 calls released at the answering workstation.Mandatory Yes 21.6.29 CPE shall provide the user with call holding as well as call parking (exclusive/non- exclusive hold) capability.Mandatory Yes 21.6.30 Users with appropriate system permissions shall have the ability to silently listen to another user's telephone conversation from their workstation. Such action shall not cause any audio or visual disturbance at the monitored answering station. Mandatory Yes 21.6.31 CPE shall provide supervisors or authorized users the ability to barge into an existing call with one click functionality.Mandatory Yes 21.6.32 Users with appropriate system permissions in an ACD deployment shall have the ability to temporarily remove themselves from a ring group (call queue) in order to conclude a previous call or perform another task such as radio dispatch. Mandatory Yes 21.6.33 CPE shall enable two-way communication with the 9-1-1 caller's device for push/pull notifications and text from 9-1-1.Mandatory Yes 21.6.34 CPE shall present historical details linked to the calling number. This feature shall accommodate information that call-takers have saved from previous calls, but should also include system generated (machine learned) information. Desirable Yes 21.6.35 CPE shall ingest and display any third party or State provided data via API that is mutually agreed upon by vendor and the CA 9-1-1 Branch.Mandatory Yes 21.6.36 CPE shall ingress, display, and send Real Time Text (RTT). Mandatory Yes 21.6.37 CPE shall provide role based/skillset based profiling for call takers, and the ability to change roles.Mandatory Yes 21.6.38 CPE shall provide call taker the ability to flag, create, and send out mis-routed 9-1- 1 call reports electronically.Mandatory Yes 21.6.39 CPE shall support maximum 10 second system operation start-up from the time user ID and password are entered.Mandatory Yes 21.6.40 CPE shall provide Management Information System (MIS) functionality and shall provide call taker details. CPE shall provide remote access to PSAP defined MIS metrics. Mandatory Yes 21.6.41 CPE shall interface with a universal log in service at PSAP if available. Universal log in shall apply across CAD or other platforms as specified by the PSAP, and support where available. Mandatory Yes Page 237 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.6.42 CPE shall provide status indication ("ready/not ready/wrap up") at the workstation level, number of status states to be configurable by PSAP.Mandatory Yes 21.6.43 CPE shall allow PSAP personnel to play back a pre-recorded PSAP message during the 9-1-1 call.Mandatory Yes 21.6.44 CPE shall provide a visual indication to the call taker when 9-1-1 traffic is delivered via a policy based route.Mandatory Yes 21.6.45 CPE provider shall provide reader boards to PSAPs upon request. Mandatory Yes 21.6.46 CPE solution shall provide an integrated mapping application. Mandatory Yes Page 238 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services Requirement CPE System Monitoring Requirements Requirement Type CPE Service Provider Agrees to meet the Requirement YES/NO 21.7.1 CPE shall provide near real-time performance data, to be monitored by CA 9-1-1 Branch as well as PSAPs upon request.Mandatory Yes 21.7.2 Performance data shall include documented Mean Time Between Failure (MTBF) or Mean Time To Repair (MTTR) that may impact the availability of the system to deliver traffic. Desirable No 21.7.3 Technical Service Bulletin (TSB) shall be provided to CA 9-1-1 Branch and PSAP for any update, patch, or bug fix.Mandatory Yes 21.7.4 Contractor shall establish a network operation center (NOC) that includes but is not limited to alarming, reporting, monitoring, managing, and supporting CPE on a 24/7/365 basis, down to the workstation level. Mandatory Yes 21.7.5 Contractor shall provide trouble ticket log that is visible to CA 9-1-1 Branch, originating PSAP, state NG 9-1-1 service provider 24/7/365.Mandatory Yes 21.7.6 CPE shall support trouble ticket ebonding with state NG 9-1-1 service provider, and shall maintain trouble ticket ebonding.Mandatory Yes 21.7.7 The CPE solution shall provide a dashboard to display and report the health of the CPE solution. The dashboard will monitor the health of the CPE solution to ensure that SLAs are being met. Monitoring shall be real time or near real time. Desirable No 21.7.8 Contractor shall notify the CA 9-1-1 Branch when any stop-clock condition exists, within 60 minutes of stop-clock discovery.Mandatory Yes 21.7 On-Premises System Monitoring Requirements Page 239 of 444 State of California CA Governor's Office of Emergency Service EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services Requirement Mandatory CPE Technology Requirements CPE Service Provider Agrees to meet the Requirement YES/NO 21.8.1 CPE shall be IP-based and shall fully comply with current and future NENA i3 standards for NG911.Yes 21.8.2 CPE shall utilize IP connectivity (NG9-1-1 trunk) and CAMA, procured by CA 9-1-1 Branch from the state NG 9-1-1 service provider. Yes 21.8.3 CPE shall support 99.999% availability. Yes 21.8.4 CPE shall be verified through testing at the CA 9-1-1 Branch NG9-1-1 Lab prior to contract award. Testing will be conducted by the Contractor in conjunction with the CA 9-1-1 Branch. Lab test results shall be provided to the CA 9-1-1 Branch upon request. The CA 9-1-1 Branch shall be the owner of all reports. Yes 21.8.5 All updates, at the discretion of and coordinated by the CA 9- 1-1 Branch, shall be tested and accepted in the CA 9-1-1 Branch NG9-1-1 Lab prior to deployment at the PSAP. Yes 21.8.6 All updates that have been tested and accepted by the CA 9- 1-1 Branch NG9-1-1 Lab shall be deployed at all PSAPs supported by the Contractor in a mutually agreed upon timeframe. This includes CPE that may have been tested and accepted by the CPE manufacturer working with the CA 9-1-1 Branch, independent of the contractor. Yes 21.8.7 Workstations shall support the minimum memory and processing capability to support CPE software and shall be equipped with all necessary audio and video interface equipment, including but not limited to: keyboard, mouse, speakers, audio integration device, keypad dialer, arbitrator, and minimum 22 inch flat panel monitors. Yes 21.8.8 Workstation, along with any other Contractor supplied peripheral hardware at each workstation shall be maintained for five (5) years. A 2 year extended maintenance grace period can start at year 5 if the PSAP chooses. Yes 21.8.9 Contractor shall supply PSAP with monitor at a minimum of 22" and a maximum of 50".Yes 21.8 On-Premises Technology Requirements Page 240 of 444 State of California CA Governor's Office of Emergency Service EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.8.10 If no NG 9-1-1 network or CAMA degradation is present, all audio input/output from the CPE shall meet MOS score requirements via third party verification. 99% of the MOS measurements shall exceed 2.6 and 90% shall exceed 3.8. Degradation caused by NG 9-1-1 network or CAMA shall not impact CPE MOS score. Yes 21.8.11 CPE hardware components installed at the PSAP shall be nonproprietary, with the sole exception of audio control devices, and shall support standard hardware interfaces. Yes 21.8.12 CPE shall include a workstation UPS and shall provide a minimum of 15 minutes of power to each workstation. CPE provider shall provide redundant 15 minute backroom UPSs. Yes 21.8.13 All workstation peripherals shall be supplied by the Contractor and supported at the workstation: auxiliary keypad dialers, arbitrators, keyboard, mouse, and headset box. Yes 21.8.14 CPE shall connect to analog or digital audio interface devices at the PSAP, as directed by the PSAP.Yes 21.8.15 Contractor shall provide cabling at install, which may include cable paths through floors, walls, and ceilings.Yes 21.8.16 CPE shall ingress, handle, and display all incoming 9-1-1 traffic and supplemental information (i.e. location and/or caller information) in a manner that is compliant with all NENA i3 standards. Yes 21.8.17 Contractor shall provide on-site technical support personnel to resolve technical issues at the PSAP.Yes 21.8.18 CPE shall ingest and display Z coordinates. Yes 21.8.19 CPE shall be designed to FCC best practices and NENA i3 standards, including NENA STA-040 (NG-SEC) and 75-502 (NG Security Audit Checklist) Yes 21.8.20 CPE shall utilize an open standards methodology where applicable. Yes 21.8.21 Contractor shall ensure that proprietary standards and or protocols are minimized within the proposed CPE system. Where systems utilize customized solutions, the Contractor shall identify the standard or protocol substituted and provide a narrative with regard to meeting the NENA i3 requirement. Yes 21.8.22 CPE system shall support BGP interfaces to state NG 9-1-1 service provider and comply with the IP addressing scheme provided by CA 9-1-1 Branch. Yes Page 241 of 444 State of California CA Governor's Office of Emergency Service EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.8.23 CPE shall support all elements of NENA i3. Any components that are implemented within the CPE shall not compromise the ability to support NENA i3 and the ability for the NG 9-1-1 service provider to deliver the call to the PSAP, or to support transfers from one PSAP to another, regardless of CPE vendor. Yes 21.8.24 CPE shall implement new industry standards, including NENA i3 based on the timeline and deployment process as directed by the CA 9-1-1 Branch. For most, but not necessarily all updates, the CA 9-1-1 Branch will direct a minimum timeline of 6 months. Yes 21.8.25 CPE shall process and deliver all potential NENA i3 9-1-1 traffic from multiple NG 9-1-1 service providers per Cal OES ICD.Yes 21.8.26 CPE testing in the Cal OES NG 9-1-1 lab shall be completed prior to contract award,as directed by the CA 9-1-1 Branch. Yes 21.8.27 All servers, routers, firewalls, and other network elements at the PSAP shall have the current version or patch, deployed in a mutually agreed upon timeframe. Yes 21.8.28 All 9-1-1 traffic must be transferred using CAMA or NG 9-1-1 service provider network, per NENA i3 standards.Yes 21.8.29 CPE shall geospatially transfer to any primary or secondary PSAP based on PSAP boundary file for i3 traffic. CPE shall offer a preferred transfer PSAP using geospatial data. Yes Page 242 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services Requirement Mandatory CPE General Requirements CPE Service Provider Agrees to meet the Requirement YES/NO 21.9.1 Electrical components must run on 120 volt AC power.Yes 21.9.2 Contractors installing 9-1-1 systems will be required to connect to ALI databases of all regional ALI providers. When installing 9-1-1 systems, it shall be the responsibility of the Contractor to contact the regional ALI provider to obtain specific connection requirements. Automatic Location Identifier (ALI) Database Connection – Contractors will connect their equipment to an ALI router to request data from the ALI database. CPE must make an ALI request based on the ANI provided with the call. Yes 21.9.3 Contractor must provide a local maintenance terminal for on- premises maintenance and diagnostics. Yes 21.9.4 CPE ANI/ALI display and refresh shall meet the minimum requirements in the NENA i3 standard. Yes 21.9.5 CPE shall accommodate the most current Statewide ALI format and be configurable for a no cost upgrade for any changes during the term the equipment is installed at the PSAP.Yes 21.9.6 CPE must conform to the state defined management information system CDR and i3 logs output format.Yes 21.9.7 The CPE solution shall have a minimum of two physical servers each that process the packets for voice and data. Features of the server operation shall provide the minimum functionality as follows: •In the event of a failure of the active server, switchover to the second server shall be automatic and shall result in no loss of service. •The system shall have a non-blocking, fault-tolerant switching fabric which expands as interface cards are added. •Every interface port shall have dedicated resources to detect tones, generate tones and support audio conferencing. •Power to each system shall be delivered to the equipment such that the failure of a single power supply will still allow the redundant systems to function without loss of ability to process traffic. The power supplies shall be connected to an uninterruptible power supply (UPS) capable of supplying power for two hours. The UPS shall be compatible with emergency generators for automatic power loss handling. Yes 21.9 On-Premises General Requirements Page 243 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services 21.9.8 CPE shall have the capability to terminate native IP telephony as well as CAMA/analog emergency and administrative traffic.Yes 21.9.9 The solution shall connect to NG ALI via lP and serial RS-232.Yes 21.9.10 Contractor shall provide diagrams in the purchase SOW for their proposed solution in showing: •System connectivity •System NG9-1-1 functionality including connectivity to network •Intelligent workstation equipment •PC hardware requirements. Yes 21.9.11 Contractor is responsible for the following: •All cabling for connectivity among the controllers •All cabling for connectivity to the demarcation point for Centralized Automatic Message Accounting (CAMA) trunk, NG 9-1- 1 Circuit (IP) and admin line connections •All cabling for connectivity to the NG ALI source. Yes 21.9.12 Contractor shall be responsible for the migration of CPE connected to existing 9-1-1 services to NG9-1-1 services at all interfaces between the bidder’s equipment and other emergency call originating network operators in order to accomplish 9-1-1 call delivery which meets the quality and reliability requirements of this RFP. This includes stating the terms, conditions, procedures, or processes for interconnection and exchange of information between other carrier’s networks and systems and the bidder’s equipment, networks and/or systems as applicable. The terms, conditions, procedures or processes shall not impose onerous requirements on other network operators, and shall be stated in the proposed solution. Examples of such interfaces would be the means to perform the timely exchange of information such as ALI database updates, exchange of monitoring/trouble ticket statuses, trunk connections to an LNG, and IP connections to border control functions. This list of examples is not exhaustive. The Contractor shall to work closely with other network operators and cooperate fully with them in order to accomplish successful transition to the NG9-1- 1 network. Yes 21.9.13 Call handling shall be NENA i3 compliant at the time of NG network go-live. If call handling is not i3 compliant, vendor will be provided 6 months to bring the call handling into compliance, at no cost to the State of California. Yes Page 244 of 444 State of California CA Governor's Office of Emergency Services EXHIBIT 21 Technical Requirements - CPE RFP 6104-2019 CA NG9-1-1 CPE Services Requirement Mandatory CPE Host Remote configuration Requirements CPE Service Provider Agrees to meet the Requirement YES/NO 21.10.1 CPE shall be capable of hosting multiple remote PSAPs. Each PSAP may be composed of a number of remote positions plus security appliances necessary to prevent intrusion by unauthorized personnel. It shall be configurable to send real-time Call Detail Record (CDR) to any PSAP for any 9-1-1 call that is being handled by that PSAP. Administrative lines shall be capable of terminating at the host or at the remote PSAPs. IP transport will also be used to backhaul admin line traffic to the host. Yes 21.10.2 The CPE solution shall allow for varying levels of administration and security for: all reconfiguration, monitoring, diagnostic and maintenance activities. Although the different jurisdictions are sharing a common hosted platform, from a PSAP perspective it shall appear to be a dedicated system. Individual PSAPs/jurisdictions shall not have visibility into the activities of other PSAPs/jurisdictions. Yes 21.10.3 Host Remote CPE shall be installed in a geo-diverse redundant configuration. The geo-diverse redundant solution shall be composed of standalone controllers. Additionally, each individual controller shall be fully redundant and fault tolerant. The central equipment at each location shall be fully capable of supporting 100 percent of all the workstations. Each location shall have local survivability such that if one location becomes completely unavailable due to a catastrophic natural or man-made event, the other locations can continue to process all 9-1-1 traffic without intervention from the other unavailable controller. Yes 21.10.4 The controller shall allow 9-1-1 traffic to be routed to a designated alternate location if all primary location workstations are busy.Yes 21.10.5 There shall be no signal conversion between the controller and the remote workstations, and the connection shall be IP end-to-end. The system shall detect and compensate for any echo and latency at the remote positions. Yes 21.10 Host Remote Configuration Requirements Page 245 of 444 March 26, 2020 EXHIBIT 22, COST WORKBOOK CA Next Generation 911 - Call Processing Equipment Disclaimer: The original version and any subsequent addendums of the RFP released by the Procurement Official, remain the official version. In the event of any inconsistency between the Bidder’s versions, articles, attachments, specifications or provisions which constitute the Contract, the official State version of the RFP in its entirety shall take precedence. Issued by: STATE OF CALIFORNIA California Governor's Office of Emergency Services Page 246 of 444 State of California Cal OES EXHIBIT 22 RFP 6104-2019 CA NG9-1-1 CPE Services CA NG 9-1-1 CPE Cost Workbook Instructions Bidders shall submit their Cost Worksheets per the instructions in RFP Part 1 Section 5, Cost Worksheet instructions and submission requirements. The Cost Worksheets must be submitted in a separately sealed, marked envelope or package containing only the completed Cost Worksheets. Costs will be evaluated as 50% of the bid. Bidders are encouraged to ensure pricing aligns with Cal OES budget constraints and that they understand the evaluation criteria in Section 7 of Part 1 of the RFP. The number of PSAPs and positions listed in the quantity column of Tab #2 and #3 are estimates that will be used for evaluation only. The unit price and all boxes that are not grayed out will be the responsibility of the bidder to complete. Quantities provided in the worksheets are for evaluation purposes only and should not be used as an indication of future orders. Quantities used for the Evaluation indicate the possible numbers for a typical bidder. There is no obligation on Cal OES’ part to utilize the entire amount in the Cost Worksheets or the entire quantities provided in the worksheets. Bidders shall enter the Bidder's cost for each service element or feature in the unshaded cells in each Cost Worksheet. The submitted costs contained within these tables will be used for evaluation purposes per RFP Part 1, Section 7.3, Final Proposal Evaluation, and will establish the maximum contracted costs and rates of the final awarded Contract for each element. Quantities used for the Evaluation indicate the average break down of call volume for an average of 100 PSAPs in California for Tab #2 and 1000 positions for Tab #3 for purposes of evaluation only. The definitions of the services of each Line Item that require costing are provided in the individual referenced RFP Technical Requirements. Bidders are cautioned that they are not to add language to the Cost Worksheets, nor are they allowed to add cost elements. The Bidder shall provide one (1) single, uniform price throughout the entire state of California. The Bidder shall provide costs for all worksheets. The cells that are grayed out shall not be modified. COST WORKSHEET ELEMENTS The Cost Worksheets elements shall include the following definitions: Non Recurring Charge (NRC): Non Recurring Charges are for set up and installation costs occurring one time only. Where NRC charges do not apply or where related equipment/installation costs are to be amortized by monthly recurring charges the cell should be represented by a zero (0) or is simply left blank. Monthly Recurring Charge (MRC) per Item per Unit: Monthly Recurring Charge per line item (unit of measure) are "fee for service" charges. Monthly recurring charges for services or features shall be provided, where applicable. When a Monthly Recurring Charge does not apply the cell should be represented by a zero (0) or is simply left blank. CPE Service Costs in Tab #2: The CPE Service Costs are the costs associated with providing Call Processing equipment in either a Data Center or Native Cloud environment needed to support the technical requirements in Exhibit 21 and the requirements in the SOW. CPE Integration Costs in Tab #3: The CPE Integration Costs are the costs associated with providing the integration and service needed to display the 9-1-1 traffic at the PSAP needed to support the technical requirements in Exhibit 21 and the requirements in the SOW. These costs do not include any of the services included in Tab #2. Cost Workbook Instructions Page 247 of 444 State of California Cal OES EXHIBIT 22 RFP 6104-2019 CA NG9-1-1 CPE Services CPE Labor Costs in Tab #4: The CPE Labor Costs are the costs associated with providing services that may be needed after the initial installation of the equipment. Labor Costs will not be used to support any of the initial deployment effort and will only be utilized after receiving direction from the CA 9-1-1 Branch. Cost Workbook Instructions Page 248 of 444 St a t e o f C a l i f o r n i a Ca l i f o r n i a G o v e r n o r ' s O f f i c e o f E m e r g e n c y S e r v i c e s EX H I B I T 2 2 R F P 6 1 0 4 - 2 0 1 9 CA N G 9 - 1 - 1 C P E S e r v i c e s Le n g t h o f C o n t r a c t i n Y e a r s : 1 0 To t a l E v a l u a t e d C o s t ( 1 2 0 m o n t h o f M R C ) - C P E S e r v i c e 5 0 , 4 1 6 , 6 8 0 . 0 0 $ To t a l E v a l u a t e d N o n - R e c u r r i n g C o s t s ( N R C ) - C P E I n t e g r a t i o n 7 , 8 0 7 , 6 3 4 . 0 0 $ NR C T o t a l 7 , 8 0 7 , 6 3 4 . 0 0 $ 12 0 m o n t h M R C T o t a l 5 0 , 4 1 6 , 6 8 0 . 0 0 $ GR A N D T O T A L ( N R C + 1 2 0 m o n t h s M R C ) U S E D F O R E V A L U A T I O N 58 , 2 2 4 , 3 1 4 . 0 0 $ CA N G 9 1 1 - C P E C o s t S u m m a r y "T o t a l E x t e n d e d C o s t s " a n d t h e i r s u m t o t a l s h a l l n o t b e m a n u a l l y e n t e r e d b y t h e B i d d e r . T h e s e c o s t s a r e e n t e r e d a u t o m a t i c a l l y f r o m t h e " T o t a l E x t e n d e d Co s t s f o r N R C a n d A n n u a l M R C " c a l c u l a t e d o n e a c h C o s t W o r k s h e e t . CA N G 9 1 1 R e g i o n C o s t S u m m a r y T a b l e To t a l N R C C o s t s To t a l M R C 1 0 y r E x t e n d e d Co s t s Page 249 of 444 St a t e o f C a l i f o r n i a Ca l i f o r n i a G o v e r n o r ' s O f f i c e o f E m e r g e n c y S e r v i c e s EX H I B I T 2 2 R F P 6 1 0 4 - 2 0 1 9 CA N G 9 - 1 - 1 C P E S e r v i c e s CA N G 9 - 1 - 1 C P E S e r v i c e C o s t s - A l l i m p l e m e n t a t i o n / o n g o i n g m a i n t e n a n c e i s a l l i n c l u s i v e o f c o s t s A B C D E F H Li n e I t e m # F e a t u r e N a m e F e a t u r e D e s c r i p t i o n Qu a n t i t y U n i t o f M e a s u r e M o n t h l y Re c u r r i n g Ch a r g e To t a l E x t e n d e d An n u a l C o s t (D * F x 1 2 m o ) 22 . 2 . 1 NG 9 - 1 - 1 C P E S e r v i c e s ( 0 - 1 0 0 B u s y H o u r C a l l s ) 0 - 1 0 0 B u s y H o u r C a l l s 24 C a l l V o l u m e 1 , 4 5 4 . 0 0 0 0 $ 4 1 8 , 7 5 2 . 0 0 22 . 2 . 2 NG 9 - 1 - 1 C P E S e r v i c e s ( 1 0 1 - 3 0 0 B u s y H o u r C a l l s ) 1 0 1 - 3 0 0 B u s y H o u r C a l l s 56 C a l l V o l u m e 3 , 4 6 1 . 0 0 0 0 $ 2 , 3 2 5 , 7 9 2 . 0 0 22 . 2 . 3 NG 9 - 1 - 1 C P E S e r v i c e s ( 3 0 1 - 7 5 0 B u s y H o u r C a l l s ) 3 0 1 - 7 5 0 B u s y H o u r C a l l s 12 C a l l V o l u m e 6 , 2 2 7 . 0 0 0 0 $ 8 9 6 , 6 8 8 . 0 0 22 . 2 . 4 NG 9 - 1 - 1 C P E S e r v i c e s ( 7 5 1 - 1 4 5 0 B u s y H o u r C a l l s ) 7 5 1 - 1 4 5 0 B u s y H o u r C a l l s 5 C a l l V o l u m e 1 1 , 1 7 3 . 0 0 0 0 $ 6 7 0 , 3 8 0 . 0 0 22 . 2 . 5 NG 9 - 1 - 1 C P E S e r v i c e s ( 1 4 5 1 - 3 6 0 0 B u s y H o u r C a l l s ) 1 4 5 1 - 3 6 0 0 B u s y H o u r C a l l s 2 C a l l V o l u m e 1 7 , 4 3 7 . 0 0 0 0 $ 4 1 8 , 4 8 8 . 0 0 22 . 2 . 6 NG 9 - 1 - 1 C P E S e r v i c e s ( 3 6 0 0 + B u s y H o u r C a l l s ) 3 6 0 1 + B u s y H o u r C a l l s 1 C a l l V o l u m e 2 5 , 9 6 4 . 0 0 0 0 $ 3 1 1 , 5 6 8 . 0 0 MR C A n n u a l 1 2 m o n t h T o t a l 5, 0 4 1 , 6 6 8 . 0 0 $ Page 250 of 444 St a t e o f C a l i f o r n i a Ca l i f o r n i a G o v e r n o r ' s O f f i c e o f E m e r g e n c y S e r v i c e s EX H I B I T 2 2 R F P 6 1 0 4 - 2 0 1 9 CA N G 9 - 1 - 1 C P E S e r v i c e s CA N G 9 1 1 C P E I n t e g r a t i o n C o s t s - A l l i m p l e m e n t a t i o n / o n g o i n g m a i n t e n a n c e i s a l l i n c l u s i v e o f c o s t s A B C D E G I Li n e It e m # F e a t u r e N a m e F e a t u r e D e s c r i p t i o n Qu a n t i t y Un i t o f M e a s u r e No n - R e c u r r i n g (O n e T i m e Ch a r g e ) To t a l E x t e n d e d NR C C o s t s 22 . 3 . 1 NR C I n t e g r a t i o n E q u i p m e n t I n s t a l l at P S A P In t e g r a t i o n e q u i p m e n t a n d i n s t a l l a t i o n a t PS A P w i t h C a l l V o l u m e l e s s t h a n 7 5 1 p e r h o u r 92 Pe r P S A P 28 , 9 3 2 . 0 0 0 0 $ 2 , 6 6 1 , 7 4 4 . 0 0 22 . 3 . 2 NR C I n t e g r a t i o n E q u i p m e n t I n s t a l l at P S A P In t e g r a t i o n e q u i p m e n t a n d i n s t a l l a t i o n a t PS A P g r e a t e r t h a n 7 5 0 c a l l s p e r h o u r 8 Pe r P S A P 50 , 8 5 5 . 0 0 0 0 $ 4 0 6 , 8 4 0 . 0 0 22 . 3 . 3 NR C P S A P D i s p l a y E q u i p m e n t I n s t a l l In s t a l l a t i o n o f m o n i t o r s , c o m p u t e r , k e y b o a r d an d o t h e r a n c i l l a r y e q u i p m e n t 1, 0 0 0 Pe r P o s i t i o n 1, 9 3 8 . 0 0 0 0 $ 1 , 9 3 8 , 0 0 0 . 0 0 22 . 3 . 4 NR C P S A P D i s p l a y E q u i p m e n t Di s p l a y e q u i p m e n t i n c l u d i n g b u t n o t l i m i t e d to : m o n i t o r s , c o m p u t e r , k e y b o a r d a n d o t h e r an c i l l a r y e q u i p m e n t 1, 0 0 0 Pe r P o s i t i o n 2, 4 9 1 . 0 0 0 0 $ 2 , 4 9 1 , 0 0 0 . 0 0 22 . 3 . 5 NR C B a s i c A P I D e v e l o p m e n t On e t i m e 1 - 3 m o n t h A P I d e v e l o p m e n t ou t s i d e o f N E N A i 3 a n d S O W r e q u i r e m e n t s 1 Pe r A P I 12 , 6 5 0 . 0 0 0 0 $ 1 2 , 6 5 0 . 0 0 22 . 3 . 6 NR C I n t e r m e d i a t e A P I De v e l o p m e n t On e T i m e 3 - 6 m o n t h A P I d e v e l o p m e n t ou t s i d e o f N E N A i 3 a n d S O W r e q u i r e m e n t s 1 Pe r A P I 25 , 3 0 0 . 0 0 0 0 $ 2 5 , 3 0 0 . 0 0 22 . 3 . 7 NR C C o m p l e x A P I D e v e l o p m e n t On e T i m e 6 - 9 m o n t h A P I d e v e l o p m e n t ou t s i d e o f N E N A i 3 a n d S O W r e q u i r e m e n t s 1 Pe r A P I 50 , 6 0 0 . 0 0 0 0 $ 5 0 , 6 0 0 . 0 0 22 . 3 . 8 IP P h o n e S e t On e t i m e c o s t , u p o n P S A P r e q u e s t 25 0 Pe r P h o n e $ 6 3 3 . 0 0 $ 1 5 8 , 2 5 0 . 0 0 22 . 3 . 9 Re a d e r B o a r d s On e t i m e c o s t , u p o n P S A P r e q u e s t 10 Pe r P S A P $ 6 , 3 2 5 . 0 0 $ 6 3 , 2 5 0 . 0 0 22 . 3 . 1 0 NR C C A M A I n s t a l l On e t i m e I n s t a l l p e r P S A P f o r P S A P s w i t h 2 0 o r le s s C A M A c o n n e c t i o n s 1 Pe r P S A P $ 1 0 , 0 0 0 . 0 0 $ 1 0 , 0 0 0 . 0 0 22 . 3 . 1 1 NR C C A M A On e t i m e I n s t a l l p e r P S A P f o r P S A P s w i t h o v e r 20 C A M A c o n n e c t i o n s 1 Pe r P S A P $ 1 5 , 0 0 0 . 0 0 $ 1 5 , 0 0 0 . 0 0 NR C T o t a l 7, 8 0 7 , 6 3 4 . 0 0 $ Page 251 of 444 St a t e o f C a l i f o r n i a Ca l i f o r n i a G o v e r n o r ' s O f f i c e o f E m e r g e n c y S e r v i c e s EX H I B I T 2 2 R F P 6 1 0 4 - 2 0 1 9 CA N G 9 - 1 - 1 S e r v i c e s CA N G 9 1 1 C P E S p e c i f i c C o s t s - A l l i m p l e m e n t a t i o n / o n g o i n g m a i n t e n a n c e i s a l l i n c l u s i v e o f c o s t s A B C D E G I Li n e It e m # F e a t u r e N a m e F e a t u r e D e s c r i p t i o n Qu a n t i t y Un i t o f M e a s u r e No n - R e c u r r i n g (O n e T i m e Ch a r g e ) To t a l E x t e n d e d NR C C o s t s 22 . 4 . 1 NG 9 - 1 - 1 C P E S u p p o r t P e r S O W R e q u i r e m e n t s 1 P e r H o u r 2 2 5 . 0 0 0 0 $ 2 2 5 . 0 0 NR C T o t a l 22 5 . 0 0 $ La b o r i s o n l y f o r a c t i v i t i e s b e y o n d w h a t i s i n c l u d e d i n t h e S O W . L a b o r r a t e s w i l l o n l y b e u s e d w h e n d i r e c t e d b y C A 9 - 1 - 1 B r a n c h . Page 252 of 444 State of California Cal OES EXHIBIT 22 RFP 6104-2019 CA NG9-1-1 CPE Services Busy Hour Volume Number of PSAPs Percent For 100 PSAPs 0-100 129 29.45% 24 101-300 234 53.42% 56 301-750 51 11.64% 12 751-1450 16 3.65% 5 1451-3600 7 1.60% 2 3601+ 1 0.23% 1 Bidders may use the total number of PSAPs (438) following the percentages above for Tab #2 and the total number of positions (4000) for Tab #3 to determine if the Cost Workbook submitted is within the Cal OES projected budget. CA NG 9-1-1 CPE Estimated Budget Bidders shall consider the Cal OES estimated budget for CPE when completing their Cost Worksheets. RFP Part 1 Section 7, provides the details on how the Cost Workbook will be evaluated. An important part of the evaluation is the ability to align the CPE pricing model with the authorized CA 9-1-1 Branch budget. Each fiscal year (July 1 - June 30), the CA 9-1-1 Branch receives an updated authorization from the CA Legislature based on the approved Governor's Budget. Below are the estimated budget numbers for FY 2020-2021. Bidders are encouraged to ensure pricing aligns with Cal OES budget constraints. For the FY 2020-2021, the CA 9-1-1 Branch estimates that the total budget for all CPE related expenditures will be: $20,000,000.00 CPE funding budget is based on the following PSAP distribution Page 9Page 253 of 444 8) T a b 2 2 . 8 A p p l i c a t i o n s P e r i p h e r a l s : t h e B i d d e r m u s t c o n f i r m , i n c o l u m n ( i ) , Y E S o r N O i f e a c h l i n e i t e m i s p r o v i d e d . 7) C o n t r a c t o r s h a l l p r o v i d e A d d i t i o n a l M o n t h l y M a i n t e n a n c e r a t e f o r a d d i t i o n a l y e a r s , i f n e e d e d b y t h e P S A P o r S t a t e . In s t r u c t i o n s : C o n t r a c t o r m u s t f o l l o w s t e p s 1 t h r o u g h 7 w h e n f i l l i n g o u t t h e s e C o s t W o r k s h e e t s . 1) B i d d e r s h a l l i n s e r t t h e i r C o m p a n y n a m e i n t o t h e " B i d d e r ' s N a m e " f i e l d a n d M o d e l n a m e f o r t h e p r o p o s e d s y s t e m i n t o t h e " M a n u f a c t u r e r / M o d e l " f i e l d . 2) F o r a l l L i n e I t e m s , t h e C o n t r a c t o r s h a l l p r o v i d e p r i c i n g f o r o n e u n i t o f m e a s u r e f o r S t a t e ' s e v a l u a t i o n . I t e m s s u b m i t t e d w i t h n o p r i c e w i l l b e c o n s i d e r e d a s o f f e r e d a t n o c o s t , e x c e p t t h e i t e m s s p e c i f i c a l l y i d e n t i f i e d a s n o t o f f e r e d b y t h e C o n t a c t o r . 3) T h e T e c h n i c a l R e q u i r e m e n t s t o b e i n c l u d e d a r e d e t a i l e d w i t h i n t h e S O W a n d E x h i b i t 2 1 - T e c h n i c a l R e q u i r e m e n t s . C o n t r a c t o r s h a l l p r o v i d e p r i c i n g f o r a l l t h e c o s t i t e m s l i s t e d o n w o r k s h e e t s 2 2 . 5 t h o u g h 2 2 . 9 4) T h e E q u i p m e n t U n i t P r i c e s h a l l i n c l u d e a l l e q u i p m e n t c o n s i s t i n g o f , b u t n o t l i m i t e d t o , p r e c o n f i g u r e d h a r d w a r e , s o f t w a r e , a n c i l l a r y m a t e r i a l s . 5) T h e l m p l e n t a t i o n U n i t P r i c e s h a l l i n c l u d e t h e c o s t o f s t a g i n g , i n s t a l l a t i o n , w i r i n g , t e s t i n g a n d t r a i n i n g . 6) C o n t r a c t o r i s t o p r o v i d e a M o n t h l y M a i n t e n a n c e r a t e f o r y e a r s 1 t h r o u g h 5 f o r e a c h L i n e I t e m # . T h e M o n t h l y M a i n t e n a n c e b e g i n s a f t e r s y s t e m a c c e p t a n c e . M o n t h l y M a i n t e n a n c e s h a l l i n c l u d e a n y u p d a t e s ( h o t f i x / p a t c h e s ) t o h a r d w a r e a n d so f t w a r e , a n d l o c a l P S A P s i t e s e r v i c e r e q u i r e d t o k e e p t h e L i n e I t e m # f u l l y o p e r a t i o n a l w h i c h m a y i n c l u d e p a r t s a s n e e d e d t o r e p l a c e o b s o l e t e t e c h n o l o g y . Page 254 of 444 (a . ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 S y s t e m - 3 P o s i t i o n s S y s t e m - 4 P o s i t i o n s Un i t o f Me a s u r e Ea c h Ba s i c S y s t e m Eq u i p m e n t U n i t Pr i c e Im p l e m e n t a t i o n U n i t Pr i c e Mo n t h l y M a i n t e n a n c e Ra t e Y e a r s 1 - 5 Co s t C P E B a s i c S y s t e m fo r 5 Y e a r s c* [ d + e + ( f * 6 0 ) ] Ad d i t i o n a l M o n t h l y Ma i n t e n a n c e R a t e B e y o n d Ye a r 5 1 14 1 , 1 1 5 . 5 6 $ 7 3 , 2 4 6 . 9 7 $ (e . ) ( f . ) ( g . ) ( h . ) 22 . 5 - 9 - 1 - 1 C P E B A S I C S T A N D - A L O N E S Y S T E M C O S T W O R K S H E E T Bi d d e r ' s N a m e : A T & T Ma n u f a c t u r e r / M o d e l : V I P E R (b . ) ( c . ) ( d . ) Li n e It e m # S y s t e m - 2 P o s i t i o n s 1 12 2 , 2 9 5 . 4 2 $ 2, 3 4 2 . 7 0 $ 3 5 4 , 9 2 4 . 5 3 $ 2 , 7 6 0 . 4 3 $ 1 18 2 , 1 0 7 . 0 0 $ 7 7 , 8 7 4 . 5 1 $ 3 , 6 0 9 . 5 1 $ 4 7 6 , 5 5 2 . 1 1 $ 4 , 5 6 8 . 3 8 $ 2, 7 6 5 . 4 3 $ 4 0 1 , 9 9 6 . 8 5 $ 3 , 3 0 4 . 7 2 $ 71 , 3 6 2 . 5 9 $ 1 , 9 0 6 . 1 9 $ 3 0 8 , 0 2 9 . 4 1 $ 2 , 2 1 6 . 4 5 $ 1 15 8 , 3 6 3 . 6 3 $ 7 7 , 7 0 7 . 4 2 $ C P E S y s t e m w i t h d e f i n e d N u m b e r o f p o s i t i o n s 1 19 6 , 3 2 7 . 5 4 $ 8 3 , 9 6 9 . 2 5 $ 3 , 9 8 1 . 7 2 $ 5 1 9 , 1 9 9 . 9 9 $ 5 , 1 0 8 . 3 1 $ S y s t e m - 7 P o s i t i o n s S y s t e m - 8 P o s i t i o n s 1 16 4 , 7 8 6 . 5 9 $ 7 6 , 0 2 5 . 3 5 $ 3 , 2 0 1 . 0 9 $ 4 3 2 , 8 7 7 . 3 4 $ 4 , 0 2 7 . 6 7 $ S y s t e m - 5 P o s i t i o n s S y s t e m - 6 P o s i t i o n s 1 22 2 , 2 1 7 . 1 3 $ 8 5 , 8 1 1 . 2 4 $ 4 , 6 7 1 . 4 4 $ 5 8 8 , 3 1 4 . 7 7 $ 6 , 1 7 0 . 9 2 $ S y s t e m - 9 P o s i t i o n s 1 20 9 , 2 6 9 . 8 3 $ 8 4 , 8 8 6 . 4 8 $ 4 , 3 2 7 . 9 3 $ 5 5 3 , 8 3 2 . 1 1 $ 5 , 6 3 9 . 6 8 $ 1 25 0 , 9 0 3 . 7 5 $ 9 3 , 4 1 8 . 7 2 $ 5 , 5 4 2 . 7 5 $ 6 7 6 , 8 8 7 . 4 7 $ 7 , 4 6 1 . 2 9 $ S y s t e m - 1 0 P o s i t i o n s S y s t e m - 1 1 P o s i t i o n s 1 23 5 , 7 7 2 . 6 5 $ 8 9 , 6 1 6 . 0 1 $ 5 , 0 2 4 . 8 3 $ 6 2 6 , 8 7 8 . 4 6 $ 6 , 7 0 6 . 5 3 $ 1 27 9 , 5 4 7 . 7 9 $ 1 0 1 , 3 7 0 . 2 1 $ 6 , 2 6 5 . 3 9 $ 7 5 6 , 8 4 1 . 4 0 $ 8 , 5 7 8 . 1 8 $ S y s t e m - 1 2 P o s i t i o n s S y s t e m - 1 3 P o s i t i o n s 1 26 3 , 9 4 9 . 7 3 $ 9 4 , 5 3 3 . 7 9 $ 5 , 8 8 1 . 5 1 $ 7 1 1 , 3 7 4 . 1 2 $ 7 , 9 9 2 . 5 8 $ 1 31 8 , 2 6 3 . 3 2 $ 1 0 3 , 7 4 6 . 2 8 $ 7 , 0 2 5 . 4 6 $ 8 4 3 , 5 3 7 . 2 0 $ 9 , 6 8 3 . 7 8 $ S y s t e m - 1 4 P o s i t i o n s S y s t e m - 1 5 P o s i t i o n s 1 29 2 , 6 0 3 . 5 9 $ 1 0 2 , 5 3 0 . 7 7 $ 6 , 6 0 2 . 8 9 $ 7 9 1 , 3 0 7 . 7 6 $ 9 , 0 6 6 . 7 7 $ 1 34 6 , 5 4 1 . 6 9 $ 1 1 3 , 9 1 0 . 1 5 $ 7 , 7 4 0 . 9 0 $ 9 2 4 , 9 0 5 . 8 4 $ 1 0 , 7 5 9 . 6 1 $ S y s t e m - 1 6 P o s i t i o n s S y s t e m - 1 7 P o s i t i o n s 1 33 3 , 4 6 8 . 8 9 $ 1 1 2 , 6 8 0 . 6 5 $ 7 , 4 0 4 . 7 3 $ 8 9 0 , 4 3 3 . 3 4 $ 1 0 , 2 2 8 . 3 3 $ 1 37 3 , 3 4 3 . 0 0 $ 1 1 9 , 1 0 3 . 5 9 $ 8 , 4 2 5 . 6 2 $ 9 9 7 , 9 8 3 . 7 9 $ 1 1 , 8 2 6 . 6 3 $ S y s t e m - 1 8 P o s i t i o n s S y s t e m - 1 9 P o s i t i o n s 1 35 9 , 6 2 2 . 5 8 $ 1 1 5 , 1 8 1 . 3 8 $ 8 , 0 7 6 . 7 6 $ 9 5 9 , 4 0 9 . 5 6 $ 1 1 , 2 9 0 . 9 5 $ At t h e t i m e o f i n s t a l l a t i o n , t h e c o s t o f a n ad d i t i o n a l p o s i t i o n f o r a c a l l h a n d l i n g s y s t e m ov e r 2 0 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y w i t h i n th e P S A P . 1 22 , 1 2 1 . 9 0 $ 2 0 , 6 6 9 . 1 1 $ 1 , 5 6 2 . 3 6 $ 13 6 , 5 3 2 . 6 1 $ 1, 5 7 0 . 5 5 $ S y s t e m - 2 0 P o s i t i o n s 1 38 6 , 4 0 1 . 2 5 $ 1 2 0 , 4 1 5 . 7 3 $ 8 , 7 6 0 . 4 3 $ 1 , 0 3 2 , 4 4 2 . 7 8 $ 1 2 , 3 5 7 . 9 3 $ 14 3 , 0 7 6 . 8 6 $ Af t e r i n s t a l l a t i o n , t h e c o s t o f a n a d d i t i o n a l po s i t i o n f o r a c a l l h a n d l i n g s y s t e m , i n c l u d i n g a l l ha r d w a r e , s o f t w a r e , t r a i n i n g , c a b l i n g , a n d a n y ad d i t i o n a l m a t e r i a l s n e c e s s a r y f o r i n s t a l l . 1 22 , 1 2 1 . 9 0 $ 2 4 , 1 7 3 . 8 0 $ 1 , 5 7 0 . 5 5 $ 14 0 , 5 2 8 . 7 0 $ 1, 7 5 7 . 1 7 $ SU B T O T A L S ( f o r e v a l u a t i o n p u r p o s e s o n l y ) : 1 3 , 1 2 4 , 7 9 0 . 1 4 $ Page 255 of 444 (a . ) Li n e It e m #1 2 3 4 5 $ 7 9 2 . 0 0 20 0 . 0 0 $ Ga t e w a y w i t h r e q u i r e d c a b l i n g 1 30 , 0 0 0 . 0 0 $ 5 , 0 0 0 . 0 0 $ 3 0 0 . 0 0 $ 5 3 , 0 0 0 . 0 0 $ 3 4 0 . 0 0 $ Ro u t e r w i t h a l l r e q u i r e d c a b l i n g 1 20 , 0 0 0 . 0 0 $ 2 , 4 0 0 . 0 0 $ SU B T O T A L S ( f o r e v a l u a t i o n p u r p o s e s o n l y ) : $ 1 0 8 , 9 5 0 . 0 0 11 5 . 0 0 $ 17 5 . 0 0 $ 3 2 , 9 0 0 . 0 0 $ 22 . 0 0 $ Fi r e w a l l w i t h a l l r e q u i r e d c a b l i n g 1 2, 5 0 0 . 0 0 $ 1 , 2 0 0 . 0 0 $ 1 0 0 . 0 0 $ 9 , 7 0 0 . 0 0 $ 1 1 5 . 0 0 $ Ch a s s i s t o m o u n t h a r d w a r e w i t h a l l r e q u i r e d in t e r c o n n e c t c a b l i n g . 1 1, 2 0 0 . 0 0 $ 6 0 0 . 0 0 $ 2 0 . 0 0 $ 3 , 0 0 0 . 0 0 $ Le g a c y N e t w o r k I n t e r f a c e c a r d w i t h a m i n i m u m o f 4 po r t s t o a c c o m m o d a t e C A M A o r 1 0 - d i g i t . 1 3, 0 0 0 . 0 0 $ 1 , 3 5 0 . 0 0 $ 1 0 0 . 0 0 $ 1 0 , 3 5 0 . 0 0 $ Bi d d e r ' s N a m e : A T & T V I P E R (g . ) ( h . ) 22 . 6 - 9 - 1 - 1 C P E S Y S T E M I T E M I Z E D C O S T W O R K S H E E T Co s t C P E S y s t e m It e m i z e d f o r 5 Y e a r s c* [ d + e + ( f * 6 0 ) ] Ad d i t i o n a l M o n t h l y M a i n t e n a n c e Ra t e B e y o n d Y e a r 5 (b . ) ( c . ) ( d . ) ( e . ) ( f . ) It e m i z e d D e s c r i p t i o n Un i t o f Me a s u r e Ea c h Eq u i p m e n t U n i t P r i c e I m p l e m e n t a t i o n U n i t P r i c e Mo n t h l y M a i n t e n a n c e R a t e Y e a r s 1 - 5 Page 256 of 444 (a . ) Li n e It e m # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 9, 5 9 6 . 5 8 $ Re m o t e P S A P w i t h 1 6 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 30 4 , 0 9 5 . 1 4 $ 1 1 0 , 8 6 7 . 2 7 $ 7 , 1 1 5 . 0 9 $ 84 1 , 8 6 7 . 8 1 $ 10 , 1 5 6 . 5 7 $ Re m o t e P S A P w i t h 1 5 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 28 6 , 3 3 2 . 3 1 $ 9 8 , 9 4 7 . 9 4 $ 6 , 6 9 5 . 8 3 $ 78 7 , 0 3 0 . 0 5 $ 8, 5 1 8 . 0 6 $ Re m o t e P S A P w i t h 1 4 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 27 2 , 8 6 9 . 6 4 $ 9 7 , 3 2 1 . 6 7 $ 6 , 3 5 8 . 7 2 $ 75 1 , 7 1 4 . 5 1 $ 9, 0 5 7 . 2 7 $ Re m o t e P S A P w i t h 1 3 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 25 9 , 4 1 0 . 3 7 $ 9 5 , 7 7 8 . 8 9 $ 6 , 0 2 1 . 4 4 $ 71 6 , 4 7 5 . 6 6 $ 7, 4 3 0 . 1 1 $ Re m o t e P S A P w i t h 1 2 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 23 9 , 8 7 0 . 5 4 $ 9 1 , 6 4 6 . 6 7 $ 5 , 6 8 5 . 2 1 $ 67 2 , 6 2 9 . 8 1 $ 7, 9 6 9 . 3 4 $ Re m o t e P S A P w i t h 1 1 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 22 6 , 3 5 0 . 7 6 $ 9 0 , 1 9 6 . 3 3 $ 5 , 3 4 7 . 1 8 $ 63 7 , 3 7 7 . 8 9 $ 6, 1 2 0 . 3 5 $ Re m o t e P S A P w i t h 1 0 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 21 0 , 5 5 4 . 6 0 $ 8 5 , 8 9 6 . 8 4 $ 4 , 8 2 9 . 0 2 $ 58 6 , 1 9 2 . 6 4 $ 6, 6 6 3 . 9 8 $ Re m o t e P S A P w i t h 9 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 19 6 , 4 3 9 . 7 9 $ 8 1 , 7 9 5 . 8 0 $ 4 , 4 7 5 . 9 6 $ 54 6 , 7 9 3 . 1 9 $ 5, 0 4 1 . 9 4 $ Re m o t e P S A P w i t h 8 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 18 2 , 9 4 2 . 7 1 $ 8 0 , 4 9 8 . 9 0 $ 4 , 1 3 4 . 7 5 $ 51 1 , 5 2 6 . 6 1 $ 5, 5 8 1 . 1 3 $ Re m o t e P S A P w i t h 7 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 16 9 , 4 2 6 . 0 0 $ 7 9 , 3 2 7 . 0 1 $ 3 , 7 9 1 . 9 7 $ 47 6 , 2 7 1 . 2 1 $ 3, 9 6 1 . 4 7 $ Re m o t e P S A P w i t h 6 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 15 9 , 5 9 5 . 3 9 $ 7 4 , 8 6 0 . 7 9 $ 3 , 4 9 7 . 5 4 $ 44 4 , 3 0 8 . 5 8 $ 4, 5 0 5 . 9 1 $ Re m o t e P S A P w i t h 5 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 14 4 , 8 3 2 . 7 0 $ 7 1 , 5 0 7 . 5 0 $ 3 , 1 2 8 . 4 1 $ 40 4 , 0 4 4 . 8 0 $ 2, 6 6 3 . 8 1 $ Re m o t e P S A P w i t h 4 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 13 1 , 8 5 9 . 8 0 $ 7 1 , 4 4 4 . 7 6 $ 2 , 6 3 0 . 4 5 $ 36 1 , 1 3 1 . 5 6 $ 3, 2 1 5 . 9 8 $ Re m o t e P S A P w i t h 3 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 11 3 , 9 5 7 . 7 9 $ 6 6 , 8 9 0 . 8 7 $ 2 , 2 0 8 . 3 7 $ 31 3 , 3 5 0 . 8 6 $ 1, 5 6 7 . 0 1 $ Re m o t e P S A P w i t h 2 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 95 , 1 7 7 . 6 0 $ 6 5 , 0 7 8 . 8 6 $ 1 , 7 7 7 . 8 1 $ 2 6 6 , 9 2 5 . 0 6 $ 2 , 1 1 3 . 2 0 $ Re m o t e P S A P w i t h 1 p o s i t i o n i n c l u d i n g a l l c o n n e c t i v i t y w i t h i n th e P S A P 1 78 , 3 6 9 . 5 4 $ 6 4 , 5 0 2 . 2 0 $ 1 , 3 6 3 . 1 8 $ 2 2 4 , 6 6 2 . 5 4 $ Co n f i g u r a t i o n T i t l e Un i t o f Me a s u r e Ea c h Eq u i p m e n t U n i t P r i c e I m p l e m e n t a t i o n U n i t P r i c e Mo n t h l y M a i n t . R a t e Ye a r s 1 - 5 Co s t f o r C P E S y s t e m H o s t - Re m o t e f o r 5 Y e a r s c* [ d + e + ( f * 6 0 ) ] Ad d i t i o n a l M o n t h l y Ma i n t e n a n c e R a t e Be y o n d Y e a r 5 2, 0 4 1 . 2 1 $ Th e s e c o n d o r a d d i t i o n a l H o s t o f a H o s t - R e m o t e S y s t e m , in c l u d i n g a l l b a c k r o o m e q u i p m e n t 1 16 1 , 2 3 0 . 5 0 $ 6 6 , 5 5 5 . 9 7 $ 1 , 8 8 2 . 1 6 $ 3 4 0 , 7 1 6 . 0 7 $ 2 , 0 3 0 . 7 0 $ Th e f i r s t H o s t o f a H o s t - R e m o t e S y s t e m , in c l u d i n g a l l b a c k r o o m e q u i p m e n t 1 16 9 , 8 5 7 . 0 7 $ 6 6 , 9 4 4 . 1 7 $ 1 , 8 9 2 . 6 7 $ 3 5 0 , 3 6 1 . 4 4 $ 22 . 7 - 9 - 1 - 1 C P E H O S T - R E M O T E S Y S T E M C O S T W O R K S H E E T Bi d d e r ' s N a m e : A T & T Ma n u f a c t u r e r / M o d e l : V I P E R (b . ) ( c . ) ( d . ) ( e . ) ( f . ) ( g . ) ( h . ) Page 257 of 444 19 20 21 22 23 24 25 - $ $ 1 4 8 , 3 3 4 . 0 6 Af t e r i n t i a l i n s t a l l a t i o n , t h e c o s t a t a n i n d i v i d u a l H o s t t o a d d an o t h e r P S A P t o a n e x i s t i n g H o s t - R e m o t e s y s t e m , p r i c e d a s ea c h . 1 - $ 2 6 , 7 1 5 . 6 3 $ - $ 26 , 7 1 5 . 6 3 $ SU B T O T A L S ( f o r e v a l u a t i o n p u r p o s e s o n l y ) : $ 1 3 , 2 8 2 , 2 0 3 . 6 8 2, 0 4 1 . 2 1 $ Af t e r i n t i a l i n s t a l l a t i o n , t h e c o s t t o a d d a n a d d i t i o n a l p o s i t i o n to a R e m o t e P S A P w i t h i n a H o s t - R e m o t e s y s t e m i n c l u d i n g a l l ha r d w a r e , s o f t w a r e , t r a i n i n g , c a b l i n g a n d a n y a d d i t i o n a l ma t e r i a l s n e c e s s a r y f o r i n s t a l l , p r i c e d a s e a c h . 1 22 , 9 8 1 . 5 3 $ 2 4 , 3 3 2 . 2 9 $ 1 , 6 9 3 . 6 5 $ 14 8 , 9 3 2 . 8 2 $ 2, 0 3 0 . 7 0 $ At t h e t i m e o f i n s t a l l a t i o n , t h e c o s t t o a d d a n a d d i t i o n a l po s i t i o n f o r a R e m o t e P S A P c o n f i g u r a t i o n o v e r 2 0 p o s i t i o n s i n a H o s t - R e m o t e s y s t e m i n c l u d i n g a l l c o n n e c t i v i t y w i t h i n t h e PS A P , p r i c e d a s e a c h . 1 22 , 9 8 1 . 5 3 $ 2 0 , 7 7 7 . 5 4 $ 1 , 6 8 5 . 3 4 $ 14 4 , 8 7 9 . 4 7 $ 11 , 7 7 8 . 7 3 $ Re m o t e P S A P w i t h 2 0 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 35 8 , 6 6 2 . 1 3 $ 1 1 9 , 8 2 5 . 9 6 $ 8 , 4 7 5 . 8 2 $ 98 7 , 0 3 7 . 2 9 $ 12 , 3 1 7 . 9 8 $ Re m o t e P S A P w i t h 1 9 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 34 5 , 2 0 2 . 6 7 $ 1 1 8 , 2 0 2 . 6 9 $ 8 , 1 3 9 . 6 5 $ 95 1 , 7 8 4 . 3 6 $ 10 , 6 9 5 . 8 0 $ Re m o t e P S A P w i t h 1 8 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 33 1 , 0 3 2 . 0 4 $ 1 1 4 , 0 0 7 . 1 0 $ 7 , 7 8 8 . 5 6 $ 91 2 , 3 5 2 . 7 4 $ 11 , 2 3 5 . 0 2 $ Re m o t e P S A P w i t h 1 7 p o s i t i o n s i n c l u d i n g a l l c o n n e c t i v i t y wi t h i n t h e P S A P . 1 31 7 , 5 7 3 . 3 4 $ 1 1 2 , 4 2 2 . 3 4 $ 7 , 4 5 2 . 0 9 $ 87 7 , 1 2 1 . 0 8 $ Page 258 of 444 (a . ) (i ) Li n e It e m # CP E P r o v i d e r A g r e e s to p r o v i d e t h i s I t e m YE S / N O 1 YE S 2 YE S 3 YE S 4 YE S 5 YE S 6 YE S 7 YE S 8 YE S 9 YE S 10 YE S 11 YE S 12 YE S 13 YE S 14 YE S 36 0 , 0 0 0 . 0 0 $ - $ 1 - $ 18 5 , 0 0 0 . 0 0 $ - $ 1 8 5 , 0 0 0 . 0 0 $ - $ Ma n a g e m e n t I n f o r m a t i o n S y s t e m ( M I S ) f u n c t i o n a l i t y in c l u d i n g a l l r e q u i r e d s e r v e r h a r d w a r e a n d s o f t w a r e , in c l u d i n g a l i c e n s e a s n e e d e d , in t h e P S A P b a c k r o o m o r Ho s t l o c a t i o n . 1 - $ - $ 2 , 0 6 3 . 3 2 $ 1 2 3 , 7 9 9 . 2 0 $ 2 , 3 2 4 . 9 2 $ Au t o m a t i c C a l l D i s t r i b u t i o n ( A C D ) f u n c t i o n a l i t y pe r po s i t i o n / A g e n t in c l u d i n g a l l r e q u i r e d h a r d w a r e , s o f t w a r e , in c l u d i n g a l i c e n s e a s n e e d e d , t r a i n i n g , c a b l i n g a n d a n y ad d i t i o n a l m a t e r i a l s f o r i n s t a l l . 1 2, 6 3 7 . 1 6 $ 1 1 8 . 6 7 $ - $ 2 , 7 5 5 . 8 3 $ On e t i m e 1 - 3 m o n t h A P I d e v e l o p m e n t o u t s i d e o f N E N A i 3 an d S O W r e q u i r e m e n t s On e t i m e 3 - 6 m o n t h A P I d e v e l o p m e n t o u t s i d e o f N E N A i 3 an d S O W r e q u i r e m e n t s 1 36 0 , 0 0 0 . 0 0 $ - $ - $ Ma n a g e m e n t I n f o r m a t i o n S y s t e m ( M I S ) f u n c t i o n a l i t y pe r po s i t i o n in c l u d i n g a l l r e q u i r e d h a r d w a r e , s o f t w a r e , in c l u d i n g a l i c e n s e a s n e e d e d , t r a i n i n g , c a b l i n g a n d a n y ad d i t i o n a l m a t e r i a l s f o r i n s t a l l . 1 45 . 0 0 $ Au t o m a t i c C a l l D i s t r i b u t i o n ( A C D ) S i t e A c t i v a t i o n fu n c t i o n a l i t y i n c l u d i n g a l l r e q u i r e d s e r v e r h a r d w a r e a n d so f t w a r e , i n c l u d i n g a l i c e n s e a s n e e d e d , in t h e P S A P ba c k r o o m o r H o s t l o c a t i o n . 1 - $ 1 7 , 7 2 8 . 9 6 $ - $ 1 7 , 7 2 8 . 9 6 $ - $ IP P h o n e S e t 1 1, 7 2 6 . 5 2 $ 7 , 7 4 5 . 5 1 $ 4 0 . 0 0 $ 1 1 , 8 7 2 . 0 3 $ - $ - $ - $ - $ Re a l - T i m e C a l l S t a t u s D i s p l a y 1 5, 0 0 0 . 0 0 $ 1 , 5 0 0 . 0 0 $ 2 0 0 . 0 0 $ 1 8 , 5 0 0 . 0 0 $ 2 2 5 . 0 0 $ Re a l - T i m e C a l l S t a t u s S y s t e m 1 9, 7 8 4 . 0 0 $ 1 2 , 9 5 8 . 5 5 $ - $ 2 2 , 7 4 2 . 5 5 $ 1 30 , 0 0 0 . 0 0 $ 1 , 2 3 0 . 7 7 $ 2 0 0 . 0 0 $ 4 3 , 2 3 0 . 7 7 $ 2 2 0 . 0 0 $ Di g i t a l V o i c e L o g g i n g R e c o r d e r ( D V L R ) w i t h m i n i m u m o f 6 5 an a l o g o r d i g i t a l c h a n n e l s i n c l u d i n g a l l r e q u i r e d h a r d w a r e , so f t w a r e , i n c l u d i n g a l i c e n s e a s n e e d e d , t r a i n i n g , c a b l i n g an d a n y a d d i t i o n a l m a t e r i a l s f o r i n s t a l l . 1 15 8 , 2 6 7 . 8 5 $ 6 8 , 6 1 1 . 1 9 $ 1 , 3 7 6 . 3 2 $ 3 0 9 , 4 5 8 . 2 4 $ 22 . 8 - A P P L I C A T I O N S A N D P E R I P H E R A L S C O S T W O R K S H E E T Ge o g r a p h i c a l I n f o r m a t i o n S y s t e m ( G I S ) M a p p i n g S y s t e m fu n c t i o n a l i t y i n c l u d i n g a l l r e q u i r e d s e r v e r h a r d w a r e a n d so f t w a r e , i n c l u d i n g a l i c e n s e a s n e e d e d , i n t h e P S A P ba c k r o o m or Ho s t l o c a t i o n . 1 - $ 1 5 , 3 5 8 . 9 7 $ - $ 1 5 , 3 5 8 . 9 7 $ - $ 39 0 . 2 5 $ Ge o g r a p h i c a l I n f o r m a t i o n S y s t e m ( G I S ) M a p p i n g S y s t e m fu n c t i o n a l i t y pe r p o s i t i o n in c l u d i n g a l l r e q u i r e d h a r d w a r e , so f t w a r e , i n c l u d i n g a l i c e n s e a s n e e d e d , t r a i n i n g , c a b l i n g an d a n y a d d i t i o n a l m a t e r i a l s f o r i n s t a l l . 1 77 8 . 5 7 $ 3 5 . 0 3 $ 3 4 6 . 3 2 $ 2 1 , 5 9 2 . 8 0 $ Bi d d e r ' s N a m e : A T & T V I P E R (b . ) ( c . ) ( d . ) ( e . ) ( f . ) ( g . ) ( h . ) Ap p l i c a t i o n o r P e r i p h e r a l U n i t o f M e a s u r e E q u i p m e n t U n i t P r i c e I m p l e m e n t a t i o n U n i t P r i c e Mo n t h l y M a i n t e n a n c e R a t e Ye a r s 1 - 5 Co s t f o r C P E A p p l i c a t i o n s a n d Pe r i p h e r a l s f o r 5 Y e a r s c* [ d + e + ( f ' 6 0 ) ] Ad d i t i o n a l M o n t h l y M a i n t e n a n c e Ra t e B e y o n d Y e a r 5 Di g i t a l V o i c e L o g g i n g R e c o r d e r ( D V L R ) w i t h m a x i m u m o f 6 4 an a l o g o r d i g i t a l c h a n n e l s i n c l u d i n g a l l r e q u i r e d h a r d w a r e , so f t w a r e , i n c l u d i n g a l i c e n s e a s n e e d e d , t r a i n i n g , c a b l i n g an d a n y a d d i t i o n a l m a t e r i a l s f o r i n s t a l l . 1 11 1 , 1 8 0 . 4 6 $ 4 5 , 1 2 4 . 4 8 $ 7 8 4 . 1 9 $ 2 0 3 , 3 5 6 . 3 4 $ 9 0 1 . 8 2 $ 1, 5 8 2 . 7 7 $ Ex t e r n a l T i m e S o u r c e ( N e t c l o c k ) Page 259 of 444 15 YE S 16 YE S Ne w t e c h n o l o g y i n t e g r a t i o n ( M R C p e r p o s i t i o n p e r m o n t h ) 1 7, 0 5 9 . 6 4 $ 7 , 8 3 6 . 2 4 $ 6 4 3 . 8 2 $ 5 3 , 5 2 5 . 0 8 $ 7 2 5 . 4 5 $ On e t i m e 6 - 9 m o n t h A P I d e v e l o p m e n t o u t s i d e o f N E N A i 3 an d S O W r e q u i r e m e n t s 1 - $ 5 5 0 , 0 0 0 . 0 0 $ 5 5 0 , 0 0 0 . 0 0 $ $ 6 , 4 1 5 . 2 1 SU B T O T A L S ( f o r e v a l u a t i o n p u r p o s e s o n l y ) $ 1 , 9 3 8 , 9 2 0 . 7 7 Page 260 of 444 22.9 - LABOR RATES COST WORKSHEET Bidder's Name : AT&T VIPER Line Item# Labor Classification Hourly Rate Subtotal (for evaluation purposes only) 675.00$ (a.) (b.) (c.) 1 Technician 200.00$ 3 Project Manager 225.00$ 2 System Engineer 250.00$ Page 261 of 444 Page 262 of 444 11/6/2025 Version: 1.0 Account Manager: Jeff Reeve Intrado VIPER Phone: 714-227-1268 Contract Number: 6138-2020 Email: JU7072@ATT.COM Budgetary 22.5 9-1-1 CPE Basic Stand-Alone System Cost A B C D E F G Line Item # Feature Name Quantity Basic System Price Implementation Price Monthly Maintenance Price Total Extended 5- Year Cost C*[D+E+(F*60)] 22.5.9 System - 10 Positions 1 $ 186,579.00 $ 62,757.00 $ 3,722.00 $ 472,656.00 223,320.00$ Estimated Sales Tax Rate:8.75%249,336.00$ Total Estimated Taxable Amount:186,579.00$ 16,325.66$ Proprietary and Confidential 488,981.66$ 5-Year Grand Total: Quote Summary Quote Summary Total 5-Year MRC: Total NRC: Total Estimated Sales Tax: San Luis Obispo PD Page 1 of 1 Proprietary Information: Not for use or disclosure outside of AT&T and Customer except under written consent.Page 263 of 444 Page 264 of 444 11/6/2025 Version: 1.0 Account Manager: Jeff Reeve Intrado VIPER Phone: 714-227-1268 Contract Number: 6138-2020 Email: JU7072@ATT.COM BUDGETARY 25.8 Applications Peripherals A B C D E F G Line Item # Feature Name Quantity Basic System Price Implementation Price Monthly Maintenance Price Total Extended 5- Year Cost C*[D+E+(F*60)] 25.8.1 6 New technology integration (MRC per position per month)8 $ - $ 1,995.00 $ 205.00 $ 114,360.00 98,400.00$ Estimated Sales Tax Rate:8.75%15,960.00$ Total Estimated Taxable Amount:-$ -$ Proprietary and Confidential 114,360.00$ 5-Year Grand Total: Quote Summary Quote Summary Total 5-Year MRC: Total NRC: Total Estimated Sales Tax: San Luis Obispo PD Page 1 of 1 Proprietary Information: Not for use or disclosure outside of AT&T and Customer except under written consent.Page 265 of 444 Page 266 of 444 Item 5f Department: Administration Cost Center: 1021 For Agenda of: 2/17/2026 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: FINAL ADOPTION OF ORDINANCE NO. 1755 (2026 SERIES) AMENDING MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS) RECOMMENDATION Adopt Ordinance No. 1755 (2026 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” increasing the per person contribution limit from $250 to $500. POLICY CONTEXT Municipal Code Chapter 2.40 outlines Elections Campaign Regulations and Section 2.4.040(A) establishes the current total contribution lim it per person at $300. Changes to the Municipal Code require two public hearings: 1) Introduce the draft Ordinance, which occurred at the Council Meeting held on February 3, 2026 , and 2) Second reading and adoption of the proposed Ordinance. DISCUSSION At the February 3, 2026 City Council meeting, the Council voted unanimously to approved increasing the per person campaign contribution amount from $250 to $50 0 to align with Senate Bill 1243. During the meeting Council approved a minor edit to the Ordinance as follows: Section 1: Findings c) The Council has considered and affirms the statement of purpose and intent set forth herein and determines the amended and decreased increased contribution limits adopted herein further and support the stated purpose and intent. The change has been incorporated into the final Ordinance. (Attachment A) Page 267 of 444 Item 5f Background The Political Reform Act is a California voter-approved initiative requiring strict, transparent, and public disclosure of money in state and local politics. It regulates campaign contributions, lobbyist activities, and conflict of interest laws to ensure honest government. In 2022, California Senate Bill 1439 expanded the requirements of Government Code section 84308, known as the Levine Act. Key points of the Levine Act  Who it applies to: State and local elected officials, appointed officials, and certain agency members who make decisions on licenses, permits, contracts, or other entitlements.  Contribution threshold: If the official receives more than $250 (amount set by statute) from a party, participant, or agent involved in a matter.  Time restriction: The official must recuse themselves from the decision: o For 12 months after receiving the contribution, and o For 3 months after a final decision is made.  Disclosure option: In some cases, an official may publicly disclose the contribution and return it, which can allow participation.  Purpose: To ensure government decisions are made fairly and impartially, not influenced by campaign donations. Approved by the Governor in September 2024 and effective January 1, 2025, Senate Bill 1243 (“SB1243”) amended Section 84308 of the Political Reform Act. The following is a summary of the amendments to the Levine Act:  Higher Contribution Threshold The amount of campaign contributions that triggers the Levine Act restrictions was raised from $250 to $500.  Clarified Definitions Key terms—such as “pending,” “agent,” “participant,” and what counts as a license, permit, or other entitlement for use—are now defined in the statute, reducing confusion over when the rules apply. Page 268 of 444 Item 5f  Agent Contributions Treated Separately Contributions by agents of a party or participant (like lobbyists or consultants) are now prohibited in any amount during a pending proceeding and for 12 months thereafter and are no longer aggregated with contributions from the party itself.  Extended Cure Period Officials who receive a disqualifying contribution now have up to 30 days (instead of 14) to return it in order to “cure” the conflict and potentially participate in the decision.  Disclosure Requirements Clarified Parties to proceedings must disclose any contribution over $500 to officials before the agency makes its final decision, with statutory timing requirements now clearer .  Expanded Contract and Participant Exemptions Certain contracts and circumstances are excluded from triggering the Levine Act, such as: o Contracts under $50,000, o Contracts between two government agencies, o Contracts where neither party receives compensation, o Some periodic renewals or routine reviews, Public Engagement In accordance with the City’s noticing requirements for proposing amendments to the Municipal Code, a legal ad was published in The New Times 10 days prior (on January 22, 2026) to introduction of the ordinance and 5 days prior to final adoption (on February 12, 2026). Additionally, contents of the ad(s) will be published to the City’s website, with e-notifications sent to subscribers of City News. T he public will have an opportunity to provide public comment in writing prior to the meeting or as public comment during the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommendation in this report, because the action does not constitute a “Project” under CEQA Guidelines Section 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2026-27 Funding Identified: No Page 269 of 444 Item 5f 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 $ $ $ There are no financial impacts directly associated with this item. ALTERNATIVES 1. Council could direct staff to not increase the per person campaign contribution limit to $500. If Council chooses this alternative, the current limit of $250 would remain in effect, and the City’s allowable campaign contribution limit would remain lower than the disqualifying contribution amount in new state law. 2. Council could direct staff to make additional changes to the allowable campaign contribution limit. If Council chooses this alternative the Ordinance would need to be reintroduced and the second reading reschedule to another date. ATTACHMENTS A - Ordinance No. 1755 (2026 Series) amending SLOMC Chapter 2.40.040 (Contribution Limitations) Page 270 of 444 O 1755 ORDINANCE NO. 1755 (2026 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 2.40.040 OF THE MUNICIPAL CODE RELATIONED TO CAMPAIGN CONTRIBUTION LIMITATIONS WHEREAS, Senate Bill 1243 amended Section 84308 of the Political Reform Act, raising the threshold for a conflicted contribution from the previous limit of $250 to $500 in (in the aggregate per candidate.) WHEREAS, the Council of the City of San Luis Obispo conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on February 3, 2026, for the purpose of considering changes proposed to update the Municipal Code. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. After considering the meeting minutes and recommendations of the City Clerk and City Attorney and public input and testimony, having considered arguments and authority supporting and opposing modifications to and continuation of the City’s campaign regulations, the Council makes and adopts the following findings in support of the regulations adopted herein: a) San Luis Obispo is a small and engaged community wherein residents closely follow and scrutinize elections processes and closely monitor the amounts and sources of campaign contributions to individual candidates for elected office . b) Based on an evaluation of campaign expenditures in comparable cities, the Council finds the direct contribution limits adopted herein are consistent with those in place in comparable jurisdictions and, notwithstanding the existing limitations or lack thereof in comparable jurisdictions, that the limitations adopted herein would permit candidates to solicit and accept contributions far in excess of historical expenditures by candidates in the City of San Luis Obispo and comparable cities. c) The Council has considered and affirms the statement of purpose and intent set forth herein and determines the amended and increased contribution limits adopted herein further and support the stated purpose and intent. SECTION 2. That the following section of the San Luis Municipal Code Chapter 2.40 is hereby amended to read as follows: 2.40.040 Contribution limitations. Page 271 of 444 Ordinance No. 1755 (2026 Series) Page 2 O 1755 A. Contributions by Persons to Candidates and/or Controlled Committees. No person shall make any contribution to a candidate and/or any controlled committee connected with that candidate, with respect to any single election, which would cause the total amount contributed by such person to the candidate and any controlled committee connected with that candidate, when combined, to exceed five hundred dollars. B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidate or controlled committee shall solicit or accept any contribution from any person which would cause the total amount contributed by such person, with respect to any single election, to the candidate and/or any controlled committee connected with that candidate, when combined, to exceed the sum of five hundred dollars. SECTION 3. Ordinance Number 1733 (2024 Series) is hereby amended and superseded to the extent inconsistent herewith. SECTION 4. 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 3rd day of February, 2026, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 202X, on the following vote: AYES: NOES: ABSENT: ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _______________________ J. Christine Dietrick City Attorney Page 272 of 444 Ordinance No. 1755 (2026 Series) Page 3 O 1755 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 273 of 444 Page 274 of 444 Item 5g Department: Human Resources Cost Center: 3001 For Agenda of: 2/17/2026 Placement: Consent Estimated Time: N/A FROM: Nickole Domini, Human Resources Director Prepared By: Jeff Andrews, Human Resources Manager SUBJECT: APPROVE A SIDE LETTER TO THE JULY 1, 2025, TO JUNE 30, 2028, MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION REGARDING STANDBY PAY RECOMMENDATION Adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Side Letter to the July 1, 2025, through June 30, 2028, Memorandum of Understanding between the City of San Luis Obispo and the San Luis Obispo City Employees’ Association.” (Attachment A) POLICY CONTEXT A side letter is a supplemental agreement between the City and a recognized employee organization that addresses specific matters related to an existing Memorandum of Understanding (MOU). The Side Letter Agreement of the San Luis Obispo City Employees’ Association (SLOCEA) MOU is in alignment with Council adopted Compensation Philosophy and Labor Relations Objectives. DISCUSSION Background On June 17, 2025, the City Council adopted a resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting and ratifying the Memorandum of Understanding between the City of San Luis Obispo and the San Luis Obispo City Employees’ Association for the period of July 1, 2025, to June 30, 2028.” SLOCEA is the largest bargaining unit in the City, representing 218 positions in classifications providing a wide variety of services to the community. Key changes in the successor MOU included annual cost-of-living adjustments and annual health insurance contribution increases through cost-sharing, the City assuming responsibility and costs for providing and administering a plan for long-term disability insurance, and changes to overtime and standby compensation. The City and SLOCEA have been working collaboratively to test and implement various Page 275 of 444 Item 5g terms and changes to the MOU, including provisions related to Standby and Callback assignments. Standby is defined as a circumstance which requires an employee so assigned to be ready to respond immediately to a call for service; and be readily available at all hours by telephone or other agreed upon communication equipment; and refrain from activities which might impair their assigned duties upon cal l. Callback is a circumstance requiring an employee to unexpectedly return to work duties after the employee has left work at the end of the employee's work duties. During the testing period, SLOCEA raised concerns regarding the City’s interpretation of the Standby language in the MOU. Specifically, SLOCEA asserted that a week-long (168 hour) standby assignment requires eight days of compensation, rather than seven, due to shift overlap. In addition, SLOCEA asserted that employees eligible for Holiday-in-Lieu hours are entitled to the higher daily standby rate when assigned to standby on designated holidays. As a result of these concerns, SLOCEA submitted a formal grievance on December 5, 2025. A grievance is defined as an alleged violation, misinterpretation, or misapplication of the employer-employee resolution, the Personnel Rules and Regulations, any MOU, or any existing written policy or procedure relating to wages, hours, or other terms and conditions of employment, excluding disciplinary matters. While grievances are sometimes perceived negatively, they can serve as an important tool to identify contractual ambiguities and provide a structured process for resolution . In this instance, the grievance process highlighted areas of the MOU requiring clarification and constructive dialogue between the parties. The City and SLOCEA have reached a tentative agreement, pending City Council approval, to resolve the grievance through a Side Letter Agreement amending the Standby Article in the SLOCEA MOU. While it is atypical for the City to agree to modify an MOU provision that results in an ongoing fiscal impact outside of a formal renegotiation period, the change in this instance is limited and results in a minimal ongoing cost of less than $500 annually. The Side Letter clarifies two key provisions: (1) employees assigned to standby on designated holidays will receive the higher daily standby rate ($75 per day compared to $55 per day), and (2) employees assigned to a seven-day (168 hour) standby shift will be eligible for seven daily standby rates. Under applicable statutes and regulations, the City Council must approve the labor agreement containing any item of special compensation reported to CalPERS. Based on this requirement, City staff prepared a Side Letter Agreement with the revised lang uage for Standby for Council approval. Previous Council or Advisory Body Action The City Council adopted the 2025-28 SLOCEA MOU on June 17, 2025. Page 276 of 444 Item 5g Public Engagement This report is on the consent agenda for February 17, 2026. The agenda and report will be posted seven days in advance of the meeting, and the public will have an opportunity to provide feedback in writing or during public comment in advance of the Council voting on the consent agenda. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2025-26 and ongoing Funding Identified: Yes Fiscal Analysis: The ongoing costs amount to $440 per year (eleven (11) fixed holidays x two (2) employees x $20 per holiday date). The fiscal forecast in the water and sewer funds includes adequate budget to cover the costs as part of the 2025 -27 Financial Plan and the ongoing increases will be built into future fiscal forecasts. There is no impact to the General Fund; employees eligible for Holiday-in-Lieu are only in the Utilities department. Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 Water Fund $0 $220 $220 Sewer Fund $0 $220 $220 State Federal Fees Other: Total $0 $440 $ $440 ALTERNATIVES Do not approve the side letter. Instead, direct staff to continue discussions with SLOCEA. Should this alternative be chosen and additional discussions conclude unsuccessfully, this may lead to impasse. ATTACHMENTS A - Draft Resolution approving a Side Letter to the July 1, 2025, through June 30, 2028, Memorandum of Understanding between the City of San Luis Obispo and the San Page 277 of 444 Item 5g Luis Obispo City Employees’ Association. B - Exhibit A to the Draft Resolution – Side Letter Agreement Page 278 of 444 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A SIDE LETTER TO THE JULY 1, 2025, THROUGH JUNE 30, 2028, MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES’ ASSOCIATION. WHEREAS, on June 17, 2025 the City Council adopted Resolution # 11579 (2025 Series) ratifying the 2025-2028 Memorandum of Understanding between the City of San Luis Obispo and The San Luis Obispo City Employees’ Association; and WHEREAS, the City of San Luis Obispo and The San Luis Obispo City Employees’ Association have agreed that employees in the group who are assigned to standby on designated holidays will receive $75 per day. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Side Letter to the July 1, 2025, through June 30, 2028, Memorandum of Understanding between the City of San Luis Obispo and The San Luis Obispo City Employees’ Association, attached hereto as “Exhibit A” and incorporated herein by this reference, is hereby approved by the Council. All other terms and conditions of the Memorandum of Understanding remain as previously approved on June 17, 2025. SECTION 2. The City Clerk shall file and furnish a copy of the resolution to Ryan Dale, President of The City of San Luis Obispo City Employees’ Association, and Nickole Domini, Director of Human Resources. SECTION 3. Amendments to compensation for The San Luis Obispo City Employees’ Association do not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 26. ___________________________ Mayor Erica A. Stewart Page 279 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 280 of 444 ARTICLE 7 - STANDBY A. Standby duty is defined as that circumstance which requires an employee so assigned to:  Be ready to respond immediately to a call for service; and  Be readily available at all hours by telephone or other agreed upon communication equipment; and  Refrain from activities which might impair their assigned duties upon call (including, but not limited to, alcohol consumption). B. Employees will receive fifty-five dollars ($55.00) for each scheduled workday and seventy-five dollars ($75.00) for each scheduled day off, including observed holidays, of such standby assignment. Employees assigned to standby on one of the eleven (11) designated holidays, as listed in Article 17 Section (A)(1), but excluding the two (2) floating holidays, shall receive seventy-five dollars ($75.00). C. A standby rotation is a defined period, generally consisting of seven (7) days or 168 hours, when a standby assignment is allocated to a single employee. The rotation begins when the employee assumes standby responsibilities and concludes when the responsibilities are transferred to another employee. Employees shall be paid for no more than seven (7) days of standby per weekly rotation. Example: A standby rotation begins on Thursday at 7:00 AM and concludes on the following Thursday at 7:00 AM. Employee A, who works Monday through Friday, assumes standby responsibility (e.g., takes possession of the standby phone/vehicle) on Thursday at 7:00 AM. Employee A remains on standby for seven (7) consecutive 24-hour periods. Employee A transfers responsibility to Employee B the next Thursday at 7:00 AM. Page 281 of 444 This example constitutes one (1) rotation. Employee A would receive compensation for five (5) scheduled workdays and two (2) scheduled days off, provided no designated holidays occur during this period. Although this assignment spans eight (8) calendar dates, it consists of seven (7) distinct 24-hour periods. Compensation is limited to seven (7) daily payments. The final morning of the rotation is considered the conclusion of the previous day's shift and does not qualify for a separate daily payment. B.D. Employees who are assigned standby duty but are unable to fulfill duty requirements must notify their supervisor as soon as possible. Such employees will not receive standby pay. C.E. Employees who are contacted and required to work as part of a standby assignment, as defined in Section A above, will be compensated in accordance with Article 8 – Callback. D.F. The parties agree that employees on standby, as defined above, are waiting to be engaged. E.G. The City and SLOCEA agree to maintain a separate document governing standby shifts at the Whale Rock Reservoir that may be revised based on the mutual agreement of the City and SLOCEA during the course of this MOU, without the need for a separate side letter. The terms and conditions outlined in the side letter dated December 6, 2024, will continue in force and effect unless amended by agreement of the Parties. Page 282 of 444 Item 6a Department: Finance Cost Center: 2002 For Agenda of: 2/17/2026 Placement: Business Estimated Time: 60 minutes FROM: Emily Jackson, Finance Director Prepared By: Riley Kuhn, Principal Budget Analyst SUBJECT: REVIEW OF FY 2025-26 SECOND QUARTER BUDGET REPORT RECOMMENDATION 1. Receive and file the FY 2025-26 Second Quarter Budget Report; and 2. Appropriate $3,468,954 in FY 2024-25 unassigned fund balance as detailed in the report; and 3. Appropriate $2,000,000 in FY 2024-25 assigned fund balance and authorize an Additional Discretionary Payment to CalPERS of $3,506,187; and 4. Appropriate the $20,000 National League of Cities Health and Wellbeing award of $20,000 to the Community Development Department’s non-staffing operating budget for the purchase of Tolemi BuildingBlocks software. POLICY CONTEXT The City’s budget policies require that the City Council review the City’s budget and financial condition at least every six months. City Charter Code Section 804 states that at any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by a majority vote of the Council. The second quarter budget review is part of the ongoing budget reporting and review process and fulfills these requirements. The accompanying Second Quarter Budget Report for FY 2025-26 provides a detailed review of the City’s financial results as compared to budget half-way through the fiscal year. DISCUSSION Background Budget Report Organization The Second Quarter Budget Report (Attachment A) is intended to provide a high-level overview of the City’s performance against budget during the fiscal year. Additional emphasis is placed on those areas where results are expected to differ from budget over the full year. The report also includes an update on the Capital Improvement Projects and Page 283 of 444 Item 6a Major City Goal Tasks active during the quarter. The report (Attachment A) includes the following sections and themes: General Fund Summary: Halfway through the year, staff note two areas of divergence from revenue budgets. First, the City’s consultants have advised that sales tax revenue may not grow as expected and a revenue miss is possible. Second, staff note that development activity has picked up since the last fiscal year and expect development review fees to exceed budget at year end. Staff also note that several departments are at risk of exceeding their staffing budgets, and lower unassigned fund balance at year-end should be expected. Use of FY 2025-26 Fund Balance: The City’s Annual Comprehensive Financial Report (ACFR), including audited financial statements, was presented to Council on January 13, 2026. The ACFR indicated there was General Fund unassigned fund balance of $3,468,954 as of June 30, 2025. The Second Quarter Report details staff recommendations for allocation of Fiscal Year 2024-25 unassigned fund balance, including additional discretionary payments to address pension liabilities and investments in infrastructure. Enterprise Fund Summary: The Second Quarter Report includes a detailed analysis of the Water, Sewer, Parking, and Transit enterprise funds. All enterprise funds are expected to achieve their budgeted fund balance targets for the year. Special Revenue and Other Funds: The Report includes information on the various Community Financing District funds and certain other funds. All are expected to finish the year in line with their budgets. Capital Improvement Program Update: The Report includes an update on the various projects completed or in progress during the first half of the fiscal year. Key projects highlighted in the report include the Water Resource Recovery Facility Upgrade, Mission Plaza Enhancements, and the Cultural Arts District Parking Structure. Major City Goal Update: The Report also includes a summary of the Major City Goal tasks with completion dates in the first half of the fiscal year. Halfway through the year, eleven tasks are on track and four are proposed to be delayed to the second half of the fiscal year. Additional Recommendations Quarterly budget reports are occasionally used to make appropriation recommendations as needed throughout the year. This report includes one such recommendation: National League of Cities Health and Wellbeing Award: The City was awarded $20,000 from the National League of Cities. Staff recommend an appropriation of this funding to purchase a trial license of BuildingBlocks software from Tolemi. It is hoped that this tool can be used to build a ‘Green and Healthy Homes Concierge Service’, the goal Page 284 of 444 Item 6a of which is to provide residents with a single point of contact to access coordinated municipal and community partners services including weatherization, electrification, home repairs, and housing stability support. Previous Council or Advisory Body Action Council adopted the FY 2025-26 budget on June 17, 2025. During the FY 2024-25 year- end budget report hearing on November 4, 2025, Council directed staff to include a recommendation to provide $500,000 to the San Luis Obisp o Museum of Art (SLOMA), contingent upon availability of funds as demonstrated by a completed audit and a satisfactory grant agreement. A proposed Grant Agreement with SLOMA will be presented for consideration in a separate item on the same agenda as this report as part of the February 17, 2026 regular City Council meeting, which would memorialize the terms and conditions for the $500,000 grant. Public Engagement Public engagement on this item can be provided to the City Council through written correspondence prior to the meeting or through public testimony at the meeting. The report will also be posted on the City’s website for public review. CONCURRENCE All departments were involved in preparation of the report and concur with the staff recommendations. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Fiscal Analysis: Staff recommend appropriation of FY 2024-25 General Fund unassigned fund balance of $3,468,954 according to the audited financial statements as follows: Page 285 of 444 Item 6a The Second Quarter Report provided in Attachment A includes further explanation and discussion of these recommended allocations. The amounts above are in addition to the $2,000,000 in General Fund assigned fund balance for an Additional Discretionary Payment (ADP) to CalPERS to continue progress toward paying down the City’s unfunded pension liability. Staff recommend total Additional Discretionary Payments as follows: ALTERNATIVES Council could direct staff to use fund balance for another purpose. Such purposes could include higher or lower payments to CalPERS, funding for specific projects, or to be held in reserve for future years or future needs. ATTACHMENTS A - FY 2025-26 Q2 Budget Report Page 286 of 444 1 Second Quarter Financial Report Fiscal Year 2025-26 IntroducƟon This financial report provides an overview of the City’s revenues and expenditures through the first half of the fiscal year (July 1, 2025 – December 31, 2025). It also provides an update on the status of the City’s Capital Improvement Plan (CIP) projects and progress on Major City Goal tasks. Throughout the document, reference will be made to the data available as of the Ɵme the report was draŌed. Revenues are oŌen not available for up to two months aŌer month-end and in some cases, revenues are not received evenly throughout the year (e.g. property tax which is largely received in the second half of the fiscal year). Expenditures are oŌen recorded in advance for annual costs or for purchase orders opened at the beginning of the year. The net impact is that actual results booked halfway into the year should not always be expected to equal one half of budgeted amounts. Commentary will be provided only when analysis suggests that full-year results may differ significantly from budget. Table of Contents General Fund Summary………………………………………………………………………….……...2 Use of FY 2024-25 Unassigned Fund Balance………………………………………….….…. 5 Water Fund Summary……………………………………………………………………………..…..…9 Sewer Fund Summary………………………………………………………………………………..…10 Parking Fund Summary…………………………………………………………………………..…….12 Transit Fund Summary……………………………………………………………...…………….…...14 Special Revenue Summaries………………………………………………..………………..………16 CIP Update………………………………………………………………..………….…………….………..21 Major City Goal Update……………………………………………………….……………….……….23 Page 287 of 444 2 General Fund Summary Halfway through the year, staff expect that revenue targets will be aƩained and expenditures will finish the year on budget. The tables below detail year-to-date (YTD) results as compared to budget and prior year actuals. Commentary is provided where results are not in line with expectaƟons. Revenue: Tax Revenue: Sales Tax (including Local Revenue Measure & Prop 172 Safety Tax): The budget for sales tax revenue was developed in February 2025, prior to the announcement of significant new and increased federal import taxes. The City’s sales tax consultants advised staff in May 2025 that these tariffs would have a negaƟve impact on sales tax revenue and presented a risk of up to $1.3 million to the revenue budget. This impact has yet to appear in sales tax data, which includes results through October. At 34% received, sales tax to date is slightly higher than the 31% received at the same point in FY 2024-25 budget, but considerably lower than the 41% received at the same point in FY 2023-24. Staff will closely monitor results and any developments in federal trade policy which could impact local spending. Property Tax: The City parƟcipates in the Teeter Plan, which means that the City is not exposed to delinquent payments and can reasonably expect to collect 100% of budgeted amounts. Staff expect to meet or modestly exceed budget by year-end. FY 2024-25 FY 2025-26 General Fund Actuals Budget YTD Actuals % Received Tax & Franchise Revenue Sales Tax 54,357,111$ 55,470,441$ 18,801,871$ 34% Property Tax 24,923,847 25,944,966 4,662,363 18% Transient Occupancy Tax 11,417,888 11,099,705 4,882,559 44% Utility User Tax 7,501,436 6,605,306 2,707,760 41% Business Tax 3,138,271 3,230,170 3,121,913 97% Franchise Fees 2,622,351 2,242,429 645,423 29% Cannabis Tax 814,502 1,000,000 429,254 43% Total Tax & Franchise Revenue 104,775,406 105,593,017 35,251,142 33% User Fees Development Review 5,697,332 4,606,812 3,753,392 81% Parks & Recreation 2,643,907 2,280,283 1,154,881 51% Fire 3,331,998 1,759,183 1,158,712 66% Police 834,584 690,200 386,622 56% Business Licenses 792,548 632,470 317,840 50% Total User Fees 13,300,370 9,968,947 6,771,447 68% General Government 7,778,702 1,669,077 2,783,372 167% 2023 Storm Reimbursement 909,090 - 53,123 Total Revenue 126,763,568$ 117,231,041$ 44,859,085$ 38% Page 288 of 444 3 Business Tax: This revenue stream is generally received at the beginning of the fiscal year with license renewals and is largely collected for this fiscal year. Staff expect to collect addiƟonal payments throughout the remainder of the year and meet budget by year-end. While other tax revenue categories show year to date results higher or lower than 50%, staff do not expect significant variances for the full year. Fee & Other Revenue: Development Review Fees: FY 2025-26 revenues are trending above projecƟons. At midyear, the Community Development Department has collected 81% of the total annual budget. This over-realizaƟon of fee revenue was due in large part to an unusually strong July during which fees were received for review for Phase 5 of Avila Ranch, as well as the steady ongoing permiƫng acƟvity supported by the build out of Avila Ranch and strong Accessory Dwelling Unit (ADU) acƟvity. Based on current trends, the Department anƟcipates finishing the year approximately $1 million above budget. The FY 2025-26 revenue budget was based on revenues from the first half of FY 2024-25, a period marked by slowing development acƟvity and macroeconomic uncertainty. ProjecƟons were set conservaƟvely at the lowest level since 2019 due to the trends being observed as well as the ongoing uncertainty in the market. While overall development remains below historical highs, the ongoing build-out of Avila Ranch, and steady ADU and other development is anƟcipated to support a steady stream of revenue for the department for the next several years. Fire Department Fees: Halfway through the year, the Fire Department has collected 66% of its budgeted revenue. This is primarily due to the agreement to provide fire services to Cal Poly for which revenue has been recognized for the full year. Fire Department Permits are also trending above budget and prior year actuals from the same period. Staff expect a modestly favorable result at year-end. General Government: This line includes earnings on cash and investment balances which have benefited greatly from elevated interest rates. Staff expect investment income to outperform budget once again, although to a lesser degree due to recent policy acƟons by the Federal Reserve. Though other fee categories show year-to-date results other than 50% of budget, staff do not expect significant variances for the full year. OperaƟng Expenditures: Year-to-date results for the General Fund are largely as expected at this point in the year. Staffing: While more than 50% of staffing budgets have been expended halfway through the year, adjusted for upfront annual payments including unfunded pension liabiliƟes, this line is expected to finish the year under budget. The General Fund is trending towards 3% salary savings at year-end, which is lower than the 4% assumpƟon built into the long-term forecast for the General Fund. This is in large part due to lower vacancy rates Citywide which may be aƩributable to a deterioraƟng labor market. Other more disƟnct FY 2024-25 FY 2025-26 General Fund Actuals Budget YTD Actuals % Expended Staffing 75,489,526$ 78,908,239$ 43,772,097$ 55% Other Operating Expenditures 18,291,470 21,313,033 13,796,103 65% Total 93,780,996$ 100,221,272$ 57,568,200$ 57% Page 289 of 444 4 drivers are detailed in the departmental secƟons below. Staff expect that the primary impact of lower salary savings will be that unassigned fund balance at year-end will be slightly lower than in recent years. In the last three years, salary savings rates of 4-7% have delivered budgetary savings of $2.5 to $3.8 million. Other OperaƟng Expenditures: This line item shows 65% spent halfway through the year due to typical purchasing acƟviƟes. Staff open purchase orders and encumber funds at the beginning of each fiscal year to be spent throughout the year. Excluding balances on open purchase orders, just 38% of budget has been paid to vendors. The table below details the budget and year-to-date actuals for both staffing and other operaƟng expenditures by department: While the General Fund as a whole is expected to finish the year on budget, staff note several departmental level variances: City AƩorney’s Office: As directed by City Council on September 12, 2025, staff increased the contract for outside counsel legal support in the California VoƟng Rights Act maƩer related to the City’s transiƟon to a Citywide Single Vote form of elecƟons. The necessary increase was unplanned and has caused a $50,000 unbudgeted expenditure. Staff plan to offset this unbudgeted spending via an administraƟve budget amendment during the fourth quarter of the fiscal year and no variance is expected at year-end. Fire: The Department’s staffing expenditures are trending above budget at the mid-point of the fiscal year. Several vacant posiƟons and two long-term injury vacancies are driving significant unbudgeted overƟme expenditures. Four firefighter posiƟons are currently vacant, requiring a minimum of one shiŌ daily to be filled at overƟme rates. The next recruit academy to hire new firefighters is planned for FY 2026-27 and shiŌ coverage overƟme will persist unƟl then. The savings from these vacant posiƟons will parƟally offset overƟme costs, as will reimbursements for mutual aid. Despite these offsets, staff expect that the department will exceed its staffing budget at year-end. Police: The Department’s staffing expenditures are trending slightly above budget mainly due to overƟme expenditures. Comparing the same Ɵme frame to last fiscal year, overƟme hours increased by 8.9% or FY 2024-25 FY 2025-26 Department Actuals Budget YTD Actuals % Expended Police 24,657,118$ 25,604,534$ 15,268,412$ 60% Fire 18,787,150 18,114,272 10,826,401 60% Public Works 16,581,895 18,136,536 10,678,028 59% Administration & IT 11,565,191 12,392,391 6,817,022 55% CDD 7,864,816 9,059,766 5,570,933 61% Parks & Rec 6,014,160 6,231,512 3,327,294 53% Finance 2,686,591 2,850,096 1,670,222 59% Non-Departmental 350,542 2,399,772 251,409 10% HR 2,085,986 2,061,730 1,152,405 56% City Attorney 1,652,744 1,863,615 1,144,438 61% Utilities 1,534,804 1,507,048 861,636 57% Total 93,780,996$ 100,221,272$ 57,568,200$ 57% Page 290 of 444 5 roughly 800 hours. This was primarily due to mandatory training that occurs every other year, providing personnel to assist with the Gifford Fire, increasing enforcement for Cal Poly back to school in September and an increase in invesƟgaƟve cases. The Department sƟll needs to plan for St. Patrick’s Day enforcement, which will occur in March. It is likely that the Department will exceed the staffing budget at year end. Parks and RecreaƟon: The Department is trending slightly above budget for FY 2025-26 due to temporary staffing costs, primarily within the Youth Services Division. Expanded childcare programming has increased the need for temporary staffing to support program delivery. Although salary expenditures are expected to exceed currently budgeted amounts, increased program parƟcipaƟon and associated revenues are expected to fully offset these costs. Recommended Use of FY 2024-25 Unassigned Fund Balance The City’s Annual Comprehensive Financial Report, including audited financial statements, was presented to Council on January 13, 2026. The report included the following table detailing General Fund unassigned fund balance of $3,468,954 as of June 30, 2025: Page 291 of 444 6 In addiƟon to the unassigned fund balance, the assigned balance includes General Fund balance for purposes including: 115 Trust Fund: As part of the 2019-21 Financial Plan, the City Council idenƟfied establishment of a SecƟon 115 Trust Fund as a work task under the Fiscal Sustainability Major City Goal. Establishment of the Trust was to be completed by February 2020 but was delayed due to uncertainty about the budgetary impacts of COVID-19. The Trust was established in early 2023 and, prior to its establishment, $2.0 million was assigned in the General Fund (shown above) to be deposited to the Trust upon establishment. In addiƟon to the $2.0 million assigned for this purpose, staff had planned to recommend allocaƟon of $2.4 million of FY 2022-23 unassigned fund balance to make an iniƟal contribuƟon to the Trust, but instead recommended allocaƟon of that funding to the Infrastructure Investment Fund to address increased infrastructure costs due to inflaƟonary factors. Despite $2.0 million being assigned for the 115 Trust, the City has not made an iniƟal contribuƟon to the Trust. The $2.0 million could be deposited into the Trust, paid directly to CalPERS, or unassigned and moved into the General Fund budget to support capital or operaƟng costs. As part of the comprehensive budget update scheduled to be presented to Council on March 3, 2026, staff will provide an overview of the purpose of a SecƟon 115 Trust fund and seek direcƟon from Council on whether or not the City should deposit the $2.0 million assigned for this purpose into the 115 Trust or reallocate it for another purpose. Tenant Improvement: Funding for tenant improvements was assigned via ResoluƟon No. 11203, using funding that arose from passage of Local Revenue Measure in November 2020. Originally intended to be used for tenant improvements in the downtown area, this money has since been used to fund Economic Development iniƟaƟves like the Buy Local Bonus program. The balance at June 30, 2025, of $608,000 is expected to be drawn down enƟrely in the 2025-27 Financial Plan. Financial Plan Fiscal Policies SecƟon 8. CalPERS and Unfunded LiabiliƟes sets the following prioriƟzaƟon for use of unassigned General Fund balance: a. AddiƟonal DiscreƟonary Payments (ADP) to CalPERS b. Infrastructure investments c. Emerging Health and Safety needs of the community In line with this policy, staff make the following recommendaƟons for one-Ɵme use of FY 2024-25 unassigned fund balance: Unassigned Fund Balance* 3,468,954$ Appropriation Recommendations Increased CalPERS ADP 869,804 Infrastructure Investments 1,212,229 Insurance Fund 802,798 SLOMA Contribution 500,000 Parks & Rec Grants 84,123 Remainder -$ *After $2.0 million CalPERS ADP Page 292 of 444 7 CalPERS ADP: Staff recommend a contribuƟon of $869,804 in addiƟon to the $2.0 million held in Assigned Fund Balance within the General Fund. This increased payment reflects the growth in staffing costs since the City began making these payments. These ADPs are criƟcal to reducing the City’s pension debt. The City’s unfunded liability as of June 30, 2024, the most recent actuarial measurement date, decreased by $7.0 million or 3.6% year over year thanks to strong investment returns in conjuncƟon with the City’s commitment to making regular ADPs. As detailed in the table below, the City’s Funded RaƟo also improved to 66.2%: In addiƟon to the General Fund, staff recommend ADPs from all funds with staffing costs. InformaƟon on each of the other funds can be found in their respecƟve writeups in the Enterprise Fund and Special Revenue and Other Funds secƟons that follow. These payments will be made from each fund’s year-end reserves, which are sufficient to cover the increased payments. Insurance Fund Reserves: Staff recommend a transfer of $802,798 to the Insurance Fund to help meet reserve requirements for liability and workers compensaƟon self-insurance policies. Policy calls for funding the reserve at 150% of the trailing five-year average claims, or the Historical Claims Basis level, and as called for by the City’s actuaries, or the Actuarial Basis level. Staff’s recommendaƟon will increase the fund’s reserve to the Historical Claims Basis level. Staff plan to recommend addiƟonal contribuƟons from unassigned fund balance over the next five years to meet the reserve level recommended by the City’s actuaries, which is $3.1 million higher than the Historical Claims Basis level as detailed in the table below: AddiƟonal informaƟon can be found in the Insurance Fund writeup within the Special Revenue & Other Funds secƟon of this report. SLOMA ContribuƟon: As directed by Council on November 4, 2025, staff have included a recommended appropriaƟon of $500,000 as a grant to the San Luis Obispo Museum of Art (SLOMA) to assist with their Downtown museum expansion. A proposed grant agreement with SLOMA will be presented to Council for consideraƟon as a separate Council agenda item. Parks and RecreaƟon Grants: This amount represents CAPSLO sƟpends for childcare provided to the Parks and RecreaƟon department that was unused in FY 2023-24 and contributed to the unassigned fund balance amount in that year. This appropriaƟon will return the funds to the Parks and RecreaƟon Department to ensure that these funds are used for their intended purpose. Infrastructure Fund Investments: Staff recommend transferring the remaining unassigned fund balance to the Infrastructure Investment Fund (IIF) for use on eligible infrastructure projects. The Public Works Department has idenƟfied an immediate funding need of approximately $2 million for the Higuera Funded Status 6/30/2023 6/30/2024 Unfunded Liability 195,372,315$ 188,434,821$ Funded Ratio 63.5% 66.2% Page 293 of 444 8 Complete Streets Project, which is construcƟon-ready and scheduled for Council consideraƟon as a business item also on February 17, 2026. Staff recommend allocaƟng the remaining FY 2024-25 unassigned fund balance ($1,212,229) to the IIF with the intent that it remain available for appropriaƟon to the Higuera Complete Streets Project, should Council authorize the issuance of a Request for Proposals to move this project forward to construcƟon. If Council does not authorize the Higuera Complete Streets Project to move forward at that Ɵme, the funding would remain available in the IFF for that project in the future or another infrastructure project that requires funding. Current Infrastructure Investment Fund Earmarks FY 2025-2026 IIF Fund Summary Payment Amount Ending Account Balance Starting Fund Balance FY 25-26 $14,658,406.00 $14,658,406.00 Prado Bridge Widening (Design) FY 26-27 $(3,500,000.00) $11,158,406.00 Prado Bridge Widening FY 27-28 $(11,158,406.00) $- Local Revenue Measure Fund Balance: In addiƟon to the General Fund unassigned balance, the Local Revenue Measure had a fund balance of $848,111 at the end of FY 2024-25. AppropriaƟon of Local Revenue Measure funds requires review and approval of recommendaƟons by the Revenue Enhancement Oversight Commission. As detailed in the Sales Tax variance explanaƟon above, staff have been advised by the City’s consultants to expect a shorƞall in revenue in the current year. Staff and the Revenue Enhancement Oversight Commission do not recommend appropriaƟon of Local Revenue Measure Fund Balance since the balance may be necessary to offset this revenue sho rƞall. Enterprise Fund Summaries The City uses Enterprise funds to account for operaƟons that are financed and operated in a manner similar to private business enterprises, where the intent is that the costs of providing certain services is recovered primarily through user charges. This secƟon of the report includes a write up on the budget status of the City’s four enterprise funds (Water, Sewer, Parking and Transit) through the second quarter of FY 2025-26. As noted in the General Fund Summary above, staff is recommending use of General Fund unassigned fund balance to increase the planned addiƟonal discreƟonary payment (ADP) to CalPERS to ensure that the ADP amount reflects changes in staffing costs for each fund since the City began making these payments. This amount supplements the $2 million that the City holds in assigned fund balance in the General Fund. A porƟon of the unassigned fund balance in the General Fund will be used to supplement the $2 million for the General Fund share of cost for the ADP and the four enterprise funds will make payments for their share of costs from each fund’s year-end reserves, which are sufficient to cover the increased payments. The total amounts paid from each fund are as follows: Page 294 of 444 9 Water Fund Summary The Water Fund’s year-to-date actuals for revenues and expenditures are generally in line with expectaƟons and anƟcipated trends. Observed variances are primarily aƩributable to seasonal revenue paƩerns, Ɵming of grant receipts, and standard budget administraƟon pracƟces, rather than structural changes to the fund. Revenue: Base Charges: Base charge revenue reflects normal billing and collecƟon paƩerns and is not a cause for concern at this Ɵme. Approximately 7% of the variance from the expected 50% of base charge revenue collected by the second quarter is due to Ɵming differences in billing. Part of the July uƟlity bills reflects service provided in June and is therefore recorded in the prior fiscal year. Staff will conƟnue to monitor base charge revenues, and no material variance is anƟcipated based on current trends. Setup Fees: Setup fee revenues are trending above budget and include a one-Ɵme $36,000 payment resulƟng from a seƩlement agreement with the developer of Avila Ranch. Because setup fees are driven by the Ɵming of development acƟvity, they are inherently variable and fluctuate throughout the fiscal year. Other Revenue: Other revenues are below budget due to the Ɵming of ProposiƟon 1B grant reimbursements, which fund the Groundwater Well Development project and increases the City’s water supply and resiliency. Of the $4.1 million that was budgeted for the ProposiƟon 1B grant, $176 thousand CalPERS ADP General Fund 2,869,804$ Water Fund 238,745 Sewer Fund 246,093 Parking Fund 98,570 Transit Fund 15,959 Whale Rock 27,033 TBID 9,983 Total 3,506,187$ FY 2024-25 FY 2025-26 Water Fund Actuals Budget YTD Actuals % Received Water Sales 21,379,368$ 21,449,631$ 10,668,685$ 50% Base Charges 7,650,544 8,448,140 3,547,393 42% Setup Fees 125,561 160,000 124,485 78% Other Revenue 6,972,868 4,351,680 722,316 17% Total Revenue 36,128,340$ 34,409,451$ 15,062,879$ 44% Page 295 of 444 10 has been realized to date. Staff anƟcipate more aggressive drawdowns on this grant funding once construcƟon is underway. Strong investment performance has parƟally offset lower-than-anƟcipated revenues elsewhere in the Other Revenue category. Investment income was budgeted at $50 thousand for the fiscal year, and approximately $326 thousand has been realized to date. Investment earnings are inherently variable and should not be relied upon as a consistent or ongoing source to offset revenue shor ƞalls. Expenditures: Staffing: Excluding upfront annual payments for CalPERS unfunded liability and reƟree healthcare, approximately 41% of the staffing budget has been expended through the second quarter, compared to an expected midyear spend of approximately 46.6%. Staffing expenditures are trending below expectaƟons primarily due to vacancies within the UƟlity Billing and Water DistribuƟon teams. OperaƟng Expenditures: Year-to-date actuals are over 50 % expended primarily due to purchase orders that were opened at the beginning of the fiscal year and annual prepaid expenditures. While these amounts are reflected as obligaƟons, only about 60% of the budget has actually been paid to vendors to date. About $11.4 million of the early-year acƟvity is aƩributable to Source of Supply costs. These costs primarily cover expenses related to dam operaƟon, maintenance, and capital infrastructure for the City's raw water supplies. Staff expect the Water Fund to finish the fiscal year within budget. Sewer Fund Summary The Sewer Fund’s year-to-date financial performance through the second quarter is generally in line with expectaƟons. Variances are primarily driven by the Ɵming of grant receipts, revenue allocaƟons, and standard budget administraƟon pracƟces rather than changes in underlying financial drivers. Revenue: Service Charges: Service charge and base fee revenues are tracking slightly ahead of the propor Ɵonal mid- year benchmark, with approximately 51% of the budgeted amount realized through the second quarter. FY 2024-25 FY 2025-26 Water Fund Actuals Budget YTD Actuals % Expended Staffing 5,495,997$ 6,225,377$ 3,085,746$ 50% Other Operating Expenditures 15,015,367 20,974,582 16,863,771 80% Total Expenditures 20,511,364$ 27,199,960$ 19,949,517$ 73% FY 2024-25 FY 2025-26 Sewer Fund Actuals Budget YTD Actuals % Received Service Charges 15,201,167$ 15,229,215$ 7,792,980$ 51% Base Charges 5,942,531 6,329,610 2,730,136 43% Other Revenue 3,748,643 210,000 1,424,094 678% Total Revenue 24,892,342$ 21,768,825$ 11,947,210$ 55% Page 296 of 444 11 This reflects accurate forecasƟng, and staff do not anƟcipate a material variance in this revenue category by the end of the fiscal year. Base Charges: Base charge revenue reflects normal billing and collecƟon paƩerns and is not a cause for concern at this Ɵme. Approximately 7% of the variance from the expected 50% of base charge revenue collected by the second quarter is due to Ɵming differences in billing. Part of the July uƟlity bills reflect service provided in June and is therefore recorded in the prior fiscal year. Staff will conƟnue to monitor base charge revenues, and no material variance is anƟcipated based on current trends. Other Revenue: Other revenues are performing above budgeted expectaƟon, due to strong interest on investments, one-Ɵme reimbursements from regional partners, and delayed grant payments. Strong investment performance reflects favorable variance of about $534 thousand. One-Ɵme reimbursements from regional partners reflect a favorable variance of $355 thousand. Delayed grant payments reflect a favorable variance of $208 thousand. All variances are due to one-Ɵme or variable revenues and should not be relied upon as a consistent or ongoing sources of revenue. Expenditures: Staffing: Excluding upfront annual payments for CalPERS unfunded liability and reƟree healthcare, approximately 43% of the staffing budget has been expended through the second quarter, compared to an expected spend of approximately 46.6% at midyear. Expenditures are trending below expectaƟons primarily due to vacancies within the UƟlity Billing team. Other OperaƟng Expenditures: Year-to-date actuals are greater than 50% of budget, primarily due to purchase orders that were opened at the beginning of the fiscal year. While these amounts are reflected as obligaƟons, 37% of the budget has actually been paid to vendors to date. While the Sewer Fund is expected to finish the fiscal year within budget, staff are monitoring two operaƟonal challenges. First, the Water Resource Recovery Facility's (WRRF) regulatory sampling requirements are currently being determined by the Regional Water Board. Performance in baseline tesƟng will establish ongoing sampling requirements and can materially impact budgetary needs. Second, the WRRF biogas cogeneraƟon system is at the end of its useful life. This asset offsets electrical and natural gas usage at the facility, which reduces operaƟonal costs and aligns with the City's Lead by Example Climate AcƟon Plan. Staff plan to keep Council informed of any recommendaƟons in maintaining or replacing this asset. Beyond these two challenges, the WRRF’s post-construcƟon operaƟng budget will be evaluated in the coming year to determine whether the forecasted operaƟng condiƟons and the associated allocated resources are sufficient. FY 2024-25 FY 2025-26 Sewer Fund Actuals Budget YTD Actuals % Expended Staffing 5,552,235$ 6,042,596$ 3,116,835$ 52% Other Operating Expenditures 3,905,154 4,828,711 2,717,979 56% Total Expenditures 9,457,388$ 10,871,306$ 5,834,813$ 54% Page 297 of 444 12 Parking Fund Summary The Parking Fund’s year-to-date performance is generally in line with expectaƟons. Revenue variances, primarily in Fines and Other Revenue, are due to delayed receipt of payments that will be realized by year- end. Year-to-date expenditures reflect a minor variance due to annual upfront payments and purchase orders opened at the beginning of the fiscal year. Revenue: The revenue budget is based on projecƟons from the 2024 Parking Rate Study, reflecƟng reduced rates effecƟve July 1, 2024. Technology upgrades recommended in the Technology Roadmap, including new payment equipment in parking garages and at on-street locaƟons, were installed during the current fiscal year and are operaƟng as anƟcipated. Meters: Parking meter revenue includes hourly parking sessions from on-street and surface parking lot areas, including mobile app payments. New payment equipment was installed on-street and in surface parking lot areas in November 2025. While the equipment is funcƟoning as intended, meter revenue is currently tracking slightly below budget due to fewer parking transacƟons compared to the same period in the prior fiscal year. If on-street parking acƟvity does not increase, staff anƟcipates a modest negaƟve variance to budget by year-end. Structures: New parking structure gaƟng equipment recommended by the Technology Roadmap was installed at the beginning of the fiscal year. The equipment is funcƟoning as intended, resulƟng in higher revenue compared to the prior fiscal year when equipment failures occurred, and is meeƟng budget expectaƟons. Staff does not anƟcipate a variance to budget by year-end. Long-Term Parking: Long-term parking revenue includes sales of on-street permits, residenƟal district permits, and garage parking permits. Garage parking permit rates were reduced from $85 per month to $45 per month effecƟve July 1, 2024. Since the rate reducƟon, garage permit sales have steadily increased and are expected to conƟnue to grow with the opening of the Cultural Arts District Parking Garage in Spring 2026. In addiƟon, the digital permit plaƞorm will be expanded in April 2026 to include 10-Hour On- Street Permits, which is anƟcipated to further support permit sales. Staff expect this increased adopƟon will lead to budget aƩainment at year-end. Fines: Parking Fines revenue includes all revenue collected from paid parking citaƟons. In March 2025, the City implemented a new citaƟon management system consistent with recommendaƟons from the Technology Roadmap. Under the new system, citaƟon payments are temporarily held in an escrow account and reconciled monthly once mailed check payments are received. This change has resulted in a slight FY 2024-25 FY 2025-26 Parking Fund Actuals Budget YTD Actuals % Received Meters 4,589,728$ 4,312,367$ 2,007,477$ 47% Structures 1,886,338 2,860,504 1,501,682 52% Long-Term Parking 522,895 500,000 233,422 47% Fines 1,113,016 1,231,100 441,034 36% Other Revenue 2,671,989 671,984 187,102 28% Total Revenue 10,783,966$ 9,575,955$ 4,370,716$ 46% Page 298 of 444 13 delay in revenue recogniƟon, contribuƟng to the year-to-date variance. Staff expects these funds to be received and does not anƟcipate a material variance to budget by fiscal year-end. Other Revenue: Other Revenue in FY 2024-25 included $1.7 million generated through higher returns on investments. Elevated interest rates during FY 2024–25 produced stronger earnings on pooled cash balances from the Cultural Arts District Parking Structure (CADPS) bond issuance, while budget assumpƟons remained conservaƟve. Investment interest is based on available cash, and as the CADPS construcƟon progresses toward compleƟon, cash balance will dwindle; therefore, staff expects minimal investment income and budgeted accordingly. This line also includes Other Rent & Lease Revenue which is budgeted based on current lease agreements, for which most of the revenue is collected toward the end of the fiscal year. Staff expect this line to finish on budget once all lease payments are collected. Expenditures: Staffing: Excluding upfront annual payments for the CalPERS unfunded liability and reƟree healthcare, approximately 48% of the staffing budget has been expended through the second quarter. Staffing expenditures are forecasted to conƟnue tracking as anƟcipated and staff does not project a variance to the budget by year-end. Other OperaƟng Expenditures: Year-to-date actuals include purchase orders established at the beginning of the fiscal year. While these amounts are reflected as obligaƟons, only 41% of the budget has been expended through the second quarter. Staff will conƟnue to monitor expenditures closely and anƟcipate the fund will finish the fiscal year under budget. FY 2024-25 FY 2025-26 Parking Fund Actuals Budget YTD Actuals % Expended Staffing 2,109,475$ 2,198,513$ 1,182,929$ 54% Other Operating Expenditures 1,707,291 1,750,531 931,628 53% Total Expenditures 3,816,767$ 3,949,044$ 2,114,557$ 54% Page 299 of 444 14 Transit Fund Summary The Transit Fund’s year-to-date results are generally consistent with expectaƟons. The Transit Fund is heavily subsidized by Federal grants which are reimbursement-based; as a result, revenues are realized aŌer expenses are incurred and draw down requests are submiƩed. Grant funds budgeted but not expended during the current fiscal year will remain available for reimbursement in future fiscal years. Through the first six months of the current fiscal year, overall transit ridership has increased by 18% compared to the same period in the prior fiscal year, which significantly exceeds the 2% annual growth forecasted in the recently adopted Short-Range Transit Plan. Revenue: Local (Bus Fare): Local bus fare revenue includes fares collected on board buses, as well as revenue from physical and digital pass sales. Cal Poly Transit Payments: Cal Poly transit payment revenue is generated through a three-year agreement between the City and Cal Poly for transit services. Payments are received quarterly, and three payments have been received to date. Staff does not anƟcipate a variance to budget by year-end. Federal Grants: Federal grant revenue includes capital and operaƟng funds from federal formula grant programs and is dependent on the Ɵming of capital expenditures and operaƟng drawdowns. The City conƟnues to draw down American Rescue Plan Act (ARPA) operaƟng funds awarded in 2022, with drawdowns occurring quarterly (October, January, April, and July) to align with federal reporƟng requirements. To date, one drawdown is reflected in the table above. Several federally funded capital projects are currently underway, and reimbursement for eligible expenses is expected by year-end. Federal funds budgeted to these projects but not expended will remain available for reimbursement in future fiscal years. State Grants: State grant revenue primarily consists of TransportaƟon Development Act (TDA) funds, which are generated by statewide sales tax and administered by the San Luis Obispo Council of Governments (SLOCOG). Because the City adopts its budget prior to the final calculaƟon of TDA allocaƟons, actual funding amounts may differ from budgeted assumpƟons. Based on final allocaƟon amounts provided by SLOCOG, the final calculaƟon was less than previously esƟmated. Staff anƟcipate a negaƟve variance of $384,000 by year-end. This reducƟon in funding is not expected to impact service levels or the delivery of capital projects because the Transit Fund has sufficient TDA fund reserves from prior fiscal years that can be drawn upon to cover any eligible operaƟng or capital expense shorƞalls resulƟng from the negaƟve variance. FY 2024-25 FY 2025-26 Transit Fund Actuals Budget YTD Actuals % Received Bus Fares 234,855$ 260,000$ 121,081$ 47% Cal Poly Transit Payments 750,000 750,000 562,500 75% Federal Grants 8,859,273 8,254,281 641,382 8% State Grants 1,360,509 2,733,722 1,174,746 43% Other 998,813 30,455 520,452 1709% Total Revenue 12,203,449$ 12,028,458$ 3,020,161$ 25% Page 300 of 444 15 Other Revenue: Other revenue includes earnings on cash and investment balances, as well as other grants and subvenƟons. During the fiscal year, the City applied for and received a $400,000 rebate from Central Coast Community Energy (3CE) related to the purchase of six new electric buses. In addiƟon, interest earnings are currently exceeding budget by approximately $60,000 due to higher than anƟcipated investment returns driven by the conƟnued elevated interest rate environment. As a result, staff anƟcipates a significant posiƟve variance by year-end. Expenditures Staffing: Excluding upfront annual payments for the CalPERS unfunded liability and reƟree healthcare, approximately 48% of the staffing budget has been expended through the second quarter. Staffing expenditures are expected to conƟnue tracking as anƟcipated, and staff does not project a variance to the budget by year-end. Other OperaƟng Expenditures: Year-to-date actuals include purchase orders established at the beginning of the fiscal year. While these amounts are reflected as obligaƟons, only 37% of the budget has been expended to date. Staff will conƟnue to monitor expenditures closely and anƟcipates a posiƟve variance by year-end. FY 2024-25 FY 2025-26 Transit Fund Actuals Budget YTD Actuals % Expended Staffing 393,432$ 391,095$ 215,680$ 55% Other Operating Expenditures 4,992,796 5,612,975 4,412,387 79% Total Expenditures 5,386,228$ 6,004,069$ 4,628,066$ 77% Page 301 of 444 16 Special Revenue and Other Fund Summaries Tourism Business Improvement District The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging industry’s gross receipts. The program annually aligns its operaƟng budget with its anƟcipated revenues, and any difference is due to open purchase orders carried over from the prior year. Revenue: While less than half of the budget has been recorded to date, revenue is recorded on a more than one month delay and staff expect to collect at least the budgeted amount for the full year. Expenditures: The TBID procures many of its services in advance, leading to a high percent of other operaƟng expenditures budget expended early in the year. The fund is expected to finish on budget for the full year. Boysen Ranch ConservaƟon Fund Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O’Connor Way. The City holds a series of conservaƟon easements that protect approximately 25 acres of the Ranch to miƟgate impacts to wetlands and waters caused by the nearby commercial development projects on Los Osos Valley Road. As part of the original easement agreement, Boysen Ranch’s owners provided the City with an endowment to fund required monitoring acƟviƟes. Revenue: The Boysen Ranch ConservaƟon Fund is an endowment fund and its budgeted revenue is provided by investment income. The fund is expected to benefit from the current interest rate environment and meet or exceed its revenue budget. Expenditures FY 2024-25 FY 2025-26 TBID Actuals Budget YTD Actuals % Received Assessments 2,304,764$ 2,219,941$ 986,917$ 44% Total Revenue 2,304,764$ 2,219,941$ 986,917$ 44% FY 2024-25 FY 2025-26 TBID Actuals Budget YTD Actuals % Expended Staffing 241,390 262,464$ 105,615$ 40% Other Operating Expenditures 1,911,188 2,109,984 1,856,979 88% Total Expenditures 2,152,578$ 2,372,448$ 1,962,594$ 83% FY 2024-25 FY 2025-26 Boysen Ranch Actuals Budget YTD Actuals % Received Investment Income 20,157$ 7,500$ 4,241$ 57% Total Revenue 20,157$ 7,500$ 4,241$ 57% Page 302 of 444 17 The fund has made its budgeted payment for authorized conservaƟon acƟviƟes. Staff expect no further payments and the fund will finish on budget. Insurance Fund The Insurance Fund serves to pay the City’s annual costs for liability, workers’ compensaƟon, polluƟon, volunteer, and property insurance needed to protect the City as well as direct claims-related expenses. It is also intended to maintain adequate reserves for future claims and unpredictable increases in insurance costs. Revenue: Insurance Fund revenues are transfers in from the General Fund and will finish on budget. Expenditures: While recent acƟons to reduce premiums have delivered savings to the Insurance Fund, addiƟonal contribuƟons from the General Fund are necessary to build and maintain adequate reserves in this fund according to City policy and actuarial esƟmates. The City’s Fund Balance and Reserve Policy establishes that the Insurance Fund will maintain funding to cover 150% of the average claim costs for the past five years. The policy also states that actuarial informaƟon will be taken into consideraƟon. Based on the most recent actuarial study dated October 10, 2025, the City should maintain a reserve of $5,129,000 for liability claims and $3,222,000 for workers’ compensaƟon claims, totaling $8,351,000, if funding at a 75% probability level. The insurance fund reserve was $4,437,620 as of June 30, 2025. This is $802,798 below the required funding level of 150% of the five-year average claims costs, and $3,913,380 below the actuarial recommended funding level at a 75% probability level, as detailed in the table below: FY 2024-25 FY 2025-26 Boysen Ranch Actuals Budget YTD Actuals % Expended Authorized Expenditures 5,023 12,535$ 12,535$ 100% Total Expenditures 5,023$ 12,535$ 12,535$ 100% FY 2024-25 FY 2025-26 Insurance Fund Actuals Budget YTD Actuals % Received Transfers in 6,000,000$ 6,000,000$ 4,500,000$ 75% Total Revenue 6,000,000$ 6,000,000$ 4,500,000$ 75% FY 2024-25 FY 2025-26 Insurance Fund Actuals Budget YTD Actuals % Expended Workers Comp 774,732 2,069,183$ 1,269,313$ 61% Liability & Other 3,020,344 3,457,975 2,285,842 66% Total Expenditures 3,795,076$ 5,527,158$ 3,555,155$ 64% Insurance Fund Historical Claims Basis Actuarial Basis Fund Balance at 6/30/2025 4,437,620$ 4,437,620$ Target 5,240,418 8,350,000 Variance 802,798$ 3,912,380$ Page 303 of 444 18 As noted earlier in the report, staff is recommending allocaƟon of $802,792 from FY 2024-25 General Fund unassigned fund balance to address a porƟon of the variance and plans to recommend addiƟonal unassigned fund balance allocaƟons of up to $1 million per year (pending availability) over the next five years to bring the Insurance Fund reserves to a policy-compliance level. Public Safety Equipment Replacement Fund The Public Safety Equipment Fund (PSEF) was created with the 2019-21 Financial Plan to help budget and forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had received an original seed amount with the FY 2019-20 budget and, going forward, an annual allocaƟon is made from the General Fund. Revenue: The fund receives revenue in the form of transfers in from the General Fund and will finish on budget. Expenditures: The fund budgets for replacement of public safety equipment currently in service and is expected to finish the year on budget. Any unspent funds remain available for future scheduled purchases. San Luis Ranch CFD A Mello-Roos Community FaciliƟes District (CFD) was established and approved by City Council on April 16, 2019 (Ordinance No 1661) pursuant to secƟon 5.02 of the San Luis Ranch Development Agreement. The boundaries of the CFD are idenƟcal to the San Luis Ranch Specific Plan and includes 131.4 acres approved for up to 580 dwelling units and commercial development, a 200-room hotel, 100,000 square feet of office space, 150,000 square feet of retail space, 7.8 acres of parks/ open space, and 52.3 acres of farmed agriculture land. The purpose of the CFD is to fund major road improvements, potable and non- potable water system improvements, drainage system improvements, wastewater system improvements, solid waste improvements, park and paseo improvements, open space improvements, and uƟliƟes. Revenue: FY 2024-25 FY 2025-26 Public Safety Actuals Budget YTD Actuals % Received Transfers in 387,334$ 236,226$ 177,170$ 75% Total Revenue 387,334$ 236,226$ 177,170$ 75% FY 2024-25 FY 2025-26 Public Safety Actuals Budget YTD Actuals % Expended Equipment Purchases 307,329 222,889$ 92,175$ 41% Total Expenditures 307,329$ 222,889$ 92,175$ 41% FY 2024-25 FY 2025-26 San Luis Ranch CFD Actuals Budget YTD Actuals % Received Tax Revenue 1,911,925$ 1,368,152$ 272,192$ 20% Total Revenue 1,911,925$ 1,368,152$ 272,192$ 20% Page 304 of 444 19 The fund collects property tax from residents under the Teeter Plan with the County and is expected to finish the year on budget or beƩer. Expenditures: The fund budgets for authorized expenditures, largely debt service, and is expected to finish the year on budget. Avila Ranch CFD A Mello-Roos Community FaciliƟes District was established and approved by City Council on October 24, 2017 (ResoluƟon No 10844) pursuant to secƟon 5.02.1 of the Avila Ranch Development Agreement. The CFD boundaries are idenƟcal to that of the Avila Ranch Development project and located at the northeast corner of Buckley Road and Vachell Lane. The Avila Ranch Project will include up to 720 dwelling units, 15,000 square feet of office and retail, 18 acres of parks, 53 acres of open space, riparian corridors and farmed agricultural land. The CFD was formed with purpose of funding services as well as faciliƟes of the CFD. Services to be funded can include the maintenance and lighƟng of parks, parkways, streets, roads, and open space; flood and storm protecƟon services; police & fire protecƟon services; maintenance and operaƟon of real property. FaciliƟes to be funded can include park, recreaƟon, parkway, and open space faciliƟes; construcƟon and undergrounding of uƟliƟes (water, natural gas, telephone lines, electric, cable television); for the acquisiƟon, improvement, or rehabilitaƟon of real property. Revenue: The fund collects property tax from residents under the Teeter Plan with the County and is expected to finish the year on budget or beƩer. Year to date results include accruals for tax payments to be made in April and are subject to change. Expenditures: FY 2024-25 FY 2025-26 San Luis Ranch CFD Actuals Budget YTD Actuals % Expended Authorized Expenditures 181,313 339,417$ 193,242$ 57% Transfers 245,664 207,243 155,432 75% Debt Service 927,450 946,700 562,600 59% Total Expenditures 1,354,427$ 1,493,360$ 911,274$ 61% FY 2024-25 FY 2025-26 Avila Ranch CFD Actuals Budget YTD Actuals % Received Tax Revenue 560,516$ 767,253$ 771,488$ 101% Total Revenue 560,516$ 767,253$ 771,488$ 101% FY 2024-25 FY 2025-26 Avila Ranch CFD Actuals Budget YTD Actuals % Expended Authorized Expenditures 50,435 99,011$ 85,367$ 86% Transfers 386,517 234,122 175,592 75% Total Expenditures 436,952$ 333,133$ 260,958$ 78% Page 305 of 444 20 The fund budgets for authorized services expenditures including maintenance, uƟliƟes, and supplies, and is expected to finish the year on or under budget. Because the development is new, maintenance costs are currently lower than revenues. At full buildout it is expected that costs to serve this neighborhood will exceed revenue and the General Fund will provide services above and beyond what the CFD pays for. All unexpended funds fall to fund balance and are available for expenditure in future years Page 306 of 444 21 Capital Improvement Program Update During the first half of the fiscal year, the City conƟnued to make significant progress in delivering its Capital Improvement Program (CIP) projects. The capital summary table below provides detail on completed and ongoing projects through the first two quarters, showcasing efforts to enhance infrastructure, maintain criƟcal systems, and improve community spaces. Key projects completed during this period include the Water Resource Recovery Facility Upgrade, Downtown MulƟ-Space Pay StaƟon InstallaƟon, and sewer replacement projects at Morro and Mill and Sierra Way. These accomplishments underscore the City's commitment to providing high-quality public faciliƟes and ensuring long-term reliability of essenƟal infrastructure. In addiƟon to completed projects, construcƟon resources are dedicated to compleƟng ongoing construcƟon projects, such as the Mission Plaza Enhancements and the Cultural Arts District Parking Structure. Both projects are in the City’s downtown core and are highly anƟcipated legacy projects. Upcoming projects entering construcƟon include EV Bus Charging Infrastructure at the Transit Yard, and the long awaited Righeƫ Community Park, which is expected to break ground in Spring 2026. Project Number Project Total Budget Estimated Construction Completion Date Additional Comments 2000561 Morro and Mill Sewer Replacement $ 2,800,000 Completed 2091219 Water Resource Recovery Facility Upgrade $ 143,376,754 Completed 2000075-13.01 Jack House Roof and Windows $ 499,554 Completed 2000539-02 Sierra Way Sewer Replacement $ 2,766,449 Completed 2000114-02 City Hall's Finance/IT Remodel $ 1,337,705 Completed 2000574-01 Downtown Multi-Space Pay Station Installation $ 1,400,000 Completed 2091506-02 Bob Jones Trail Groundwater Well Drilling (Packet 2) $ 569,037 Completed 2000096 Sewer-main Replacement: Foothill and Santa Rosa CalTrans $ 598,591 Completed 2090649 Mid-Higuera Bypass $ 11,550,000 Q3 FY 25-26 Construction ongoing. 2091439 Mission Plaza Enhancements $ 3,729,574 Q3 FY 25-26 Construction Ongoing. 2000577-04 1106 Walnut TI $ 1,887,843 Q3 FY 25-26 Construction Ongoing. 2000616 Roadway Paving 2025 $ 9,117,000 Q3 FY 25-26 Construction Ongoing. 2000577-04 1106 Walnut Fence $ 512,734 Q3 FY 25-26 Construction Ongoing. 2000615-01 Grand Ave Striping and Signage Modifications $ 429,000 Q3 FY 25-26 Construction Started in Q2. 2000117 Cultural Arts District Parking Structure $ 47,000,000 Q3 FY 25-26 Construction Ongoing. 2000402_403 EV Bus Charging Infrastructure $ 1,103,225 Q4 FY 25-26 Construction Starting Q3 FY25- 26 2000054-01 Righetti Community Park $ 13,668,912 Q2 FY 27-28 Construction Starting in Q3 FY25-26 Completed & Ongoing Construction Capital Projects (July 2025 -December 2025) Page 307 of 444 22 Project Number Project TOTAL ESTIMATED PROJECT COST (Construction Phase) Estimated Construction Start Date Additional Comments 2091503 California and Taft Roundabout $ 6,800,000 Q1 FY 26-27 Right of way acquisition in progress and finalizing design documents. Construction start pending right-of-way resolution, could slip into Q2 FY27. 2091252 Prado Road Bridge and Road Widening $ 33,100,100 Q2 FY 27-28 Regulatory permits secured. 90% constuction documents under development. A value analysis of this project in coordination with the Prado Interchange is under development. 2091613 Prado Road Interchange $ 99,000,000 Q2 FY 29-30 Construction cost reduced by Council on November 4, 2025 from $124M to $99M. The consultant team is currently developing a supplemental project report and advancing construction documents. Supplemental project report is planned to be considered by Council in mid-calendar year 2026. Status of Major and Legacy Projects in Design Page 308 of 444 23 Major City Goals Update This report includes an update on all Major City Goal tasks from the 2025-27 Financial Plan with an original compleƟon date in the first half of FY 2025-26. As of the second quarter, eleven Major City Goal tasks have been completed or are on track and four have been delayed. AddiƟonal detail on how each task was completed or why it was delayed can be found in the tables that follow: Page 309 of 444 Major City Goal Task Estimated Completion Status Update Support the cultural arts, including the Cultural Arts District : c. Complete the update to the City's Historic Resources Inventory. Complete initial phase of the project updating the Historic Preservation Ordinance and Historic Context Statement (Phase 1) and complete the update of the Historic Resources Inventory (Phase 2). ** (FY 2027 Q4) FY 2026 Q2 Phase 1 Complete. On December 2, 2025, the City Council held a public hearing to introduce an ordinance repealing the existing Historic Preservation Ordinance (SLOMC 14.01) and replacing it with updated provisions, and adopted a resolution approving updates to the Historic Context Statement. Following the second reading, the ordinance will become effective on February 13, 2026. Balance operational needs and infrastructure investments with consideration of the long-term fiscal sustainability of the City organization: b. Conduct an RFP process to evaluate banking service providers that will provide secure banking services at the best value to the City. FY 2026 Q2 Complete. On October 7, 2025, the City Council awarded a seven-year contract to JPMorgan Chase to continue serving as the City’s primary banking services provider, determining that selecting this provider was in the City’s best interest. Facilitate programs and initiatives to support diverse community engagement and representation: b. Partner with Diversity Coalition's BIPOC Board Leadership Program to increase representation of underserved and underrepresented groups on City Advisory Bodies through a separate training/panel session in conjunction with the existing program. FY 2026 Q2 Complete. On Thursday, November 13, at the Ludwick Community Center, the Office of Diversity, Equity, and Inclusion sponsored and hosted a community mixer designed to build connections between local nonprofits and community members. The event created space for nonprofit organizations to share information about their missions and board opportunities with participants who had just attended the BIPOC Board Leadership Conference earlier that day. During the BIPOC Board Leadership Program, the Office of Diversity, Equity, and Inclusion also presented on City Advisory Bodies and shared clear, accessible information on how community members can become more engaged in City and County government. Together, these efforts supported pathways to civic participation, leadership, and belonging. Facilitate programs and initiatives to support diverse community engagement and representation: d. Develop and distribute a “how to” guide in Spanish and other languages on how to participate in public meetings and share public comment. FY 2026 Q2 Near complete. A "How to" Guide has been developed and translated into Spanish and is currently in the final stages of review. In August 2026, staff will host a community workshop in the Council Chambers to walk through the guide in a hands-on and welcoming way. The workshop will offer a deeper understanding of the content, provide community members with the opportunity to be present in the Council Chambers, and practice making public comment in a supportive environment. This approach seeks to strengthen access, build confidence, and increase community participation by at least 15 percent moving forward. Facilitate sustainable growth that aligns with climate, economic, and housing goals: c. Conduct a study session on implications and implementation of State Fire Hazard maps for local responsibility areas. FY 2026 Q2 Complete. A Study Session was held on October 7, 2025, during which Council provided direction on proposed amendments to the WUI code (adopted 12/2/25), as well as guidance on implementation of the code changes, as reflected in the meeting minutes. Promote the expansion and diversification of housing opportunities for all: b. Create an informational handbook to assist the community in understanding state and local regulations for the development of ADUs and the creation of Urban Lot Splits and evaluate options for adopting pre-approved ADU plans. FY 2026 Q2 Complete and In Progress. The ADU and Urban Lot Split Guide will be uploaded to the City website before the end of February 2026. Staff continue to evaluate options for adopting pre-approved ADU plans, however, with recent state law changes, architects can request that any of their plans submitted become "pre-approved" plans and provided on the City's webpage. Ensure housing is safe, healthy, and affordable, while facilitating stronger protections for renters: a. Conduct a study session with the City Council to identify needs and opportunities regarding renter protections, based on the memo produced in 2024, and receive direction on items for further consideration and development. FY 2026 Q2 Complete. A Study Session was held on October 28, 2025, during which Council provided direction to proceed with near-term strategic actions within the current work program, advance a Rental Registry study session in February 2026 incorporating Council feedback, and initiate development of a Safe Housing Strategic Plan in the next fiscal year. Council also directed staff to conduct additional research on identified policy questions and data gaps related to rental housing conditions, enforcement, and tenant and landlord education. Ensure housing is safe, healthy, and affordable, while facilitating stronger protections for renters: c. Adopt and implement updated California Building Standards and local amendments (building code) FY 2026 Q1 Complete. The updated California Building Standards and local amendments (building code, fire code, etc.) were adopted by Council on December 2, 2025 via Ordinances 1751 and 1752. Collaborate with partners to prevent and reduce homelessness : c. Homeless Services - Meet monthly with CAPSLO to support effectiveness of the 40 Prado Homeless Service Center, including updates to Good Neighbor Policy which will be presented to Council in Q2 of FY25-26. FY 2026 Q2 Ongoing and Near Complete. Leadership and staff from the City and CAPSLO continue to meet monthly to collaborate on collective homelessness response strategic planning efforts and partnership opportunities. CAPSLO will present updates to Council on their Homeless Services Division's 2025-2028 Strategic Alignment Plan and the 2025 CAPSLO Good Neighbor Policy at the March 17, 2026 City Council meeting. On track tasks: Page 310 of 444 Major City Goal Task Estimated Completion Status Update Advance street safety improvements and support Vision Zero goals for all road users: a. Start construction of the 2025 Arterials Paving project which could include streets such as Sacramento Drive, Tank Farm, and Calle Joaquin depending on available funding. FY 2026 Q2 Complete. Construction started in September 2025. Due to insufficient funding, work on Calle Joaquin was excluded from the project. Support policies and programs aimed at expanding mass transportation and public transit: a. Execute new SLO Transit Operations and Maintenance Agreement. FY 2026 Q2 Near Complete. RFP has been published and responses are due by February 20, 2026. Council item is scheduled for April 7, 2026 to award the contract. Continue implementation of the Climate Action Plan (CAP) and Lead by Example (LBE) Plan Work Programs: g. Develop and adopt internal polices focused on zero emissions buildings, facilities, and vehicles (LBE) FY 2026 Q2 FY 2026 Q4 Delayed. An internal review draft has been written and is currently under review. Staff expects the internal policies to be completed and enforced by FY 2026 Q4. Facilitate sustainable growth that aligns with climate, economic, and housing goals: b. Conduct a study session on the status of the City's growth management regulations. FY 2026 Q2 FY 2026 Q3 Delayed and Recommended Change. Given emergent community needs and an impacted agenda forecast, this item has been moved to FY 2026 Q3 and is recommended to be presented to Council in memo format rather than as a study session during this financial plan. Support the cultural arts, including the Cultural Arts District : a. Complete the construction of the Mission Plaza Project to enhance the experience of the plaza and downtown. FY 2026 Q2 FY 2026 Q3 Delayed and Near Complete. Project construction is expected to be complete by March. Completion is behind schedule due to weather and contractor delays. The tenant lease for the kiosk has been executed with the owners of Linnea's. Build out park infrastructure to support community recreation and accessibility: a. Start construction of Righetti Ranch Park (Phase 1). FY 2026 Q2 FY 2026 Q4 Delayed and Near Complete. On December 2, 2025 the Council awarded a construction contract for the Righetti Community Park, anticipated to begin in Spring 2026. Components of the park scheduled for construction include the fields, playground, and restrooms, as well as the pickleball courts and bike pump track. Delayed tasks: Page 311 of 444 Page 312 of 444 Item 6b Department: Public Works Cost Center: 9501 For Agenda of: 2/17/2026 Placement: Public Hearing Estimated Time: 60 min FROM: Aaron Floyd, Public Works & Utilities Director Prepared By: Luke Schwartz, Transportation Manager SUBJECT: REQUEST TO ADVERTISE THE HIGUERA COMPLETE STREETS AND REVISED 50 HIGUERA W IDENING PROJECTS FOR CONSTRUCTION RECOMMENDATION Higuera Complete Streets Project 1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $2,000,000 from the Infrastructure Investment Fund to support the Higuera Complete Streets Project, Specification Number 2001057” (Attachment A); and, 2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Accepting a Future Automobile Level of Service Deficiency at the Intersection of Higuera Street and Los Osos Valley Road in Connection with the Higuera Complete Streets Project, Specification Number 2001057” (Attachment F); and, 3. Authorize transfers to the Higuera Complete Streets Project (Account 2001057) from the following capital project accounts: a. $500,000 from Prado Creek Bridge Replacement (No. 2091252) b. $204,847 from Active Transportation Plan Implementation (No. 2000608) c. $100,000 from Vision Zero Implementation (No. 2000073) d. $50,000 from the Traffic Signal Maintenance & Replacements (No. 2001003) e. $120,000 from Water Valve Cover Adjustments (No. 2001005) f. $50,000 from Sewer Valve Cover Adjustments (No. 2000084); and, 4. Approve the project plans and specifications, authorize the City Engineer to approve any minor refinements to final plans and specifications prior to advertisement, and authorize staff to advertise for bids for the Higuera Complete Streets Project, Specification Number 2001059; and, 5. Authorize the City Manager to award the Construction Contract for the Higuera Complete Streets Project pursuant to Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly disclosed funding amount of $12,960,700; and, 6. Authorize the City Engineer to approve Contract Change Orders for the Higuera Complete Streets Project up to the available project budget, including any amendments authorized by the City Manager; and, Page 313 of 444 Item 6b 7. Authorize the use of up to $200,000 in unspent Higuera Complete Streets Project capital funds to support increased street sweeping obligations following project completion. 50 Higuera Widening Project 8. Approve project plans and specifications for the revised 50 Higuera Widening Project, Specification No. 2091294; and, 9. Authorize staff to advertise for bids for the 50 Higuera Widening Project, Specification No. 2091294; and, 10. Authorize the City Manager to award the Construction Contract for the 50 Higuera Widening Project if the lowest responsible bid is within the Engineer’s Estimate of $315,000; and, 11. Authorize the City Engineer to approve Contract Change Orders for the 50 Higuera Widening Project up to the available project budget; and, 12. Approve the transfer of $22,600 from the 50 Higuera Widening Project Account (No. 2091294) to the New Streetlights CIP Account (No. 2001016); and, 13. Authorize the Finance Director to approve the transfer of any remaining unspent State Urban Highway Account project funds not required for construction of the 50 Higuera Widening Project to the Higuera Complete Streets Project (Specification No. 2001057). REPORT-IN-BRIEF This agenda item requests that the City Council approve plans and specifications and authorize two closely-related projects on the Higuera Street corridor to be advertised for construction: 1. the Higuera Complete Streets Project, and 2. the revised 50 Higuera Widening Project. While both projects advance traffic safety improvements on Higuera Street, they have different scopes, funding sources, and grant-related delivery requirements, and must be constructed in a specific sequence under separate contracts. The following report provides more information on each project, including the relationship between the two. Higuera Complete Streets The Higuera Complete Streets Project (the “Complete Streets Project”) advances the City’s highest-priority infrastructure recommendation identified in the 2021 Active Transportation Plan (ATP) and supports the mode shift priorities of the General Plan and Climate Action Plan, the Vision Zero goal to reduce severe traffic crashes, and the City’s Major Goal of Infrastructure and Sustainable Transportation. This project has been consistently ranked as the top infrastructure priority by the City’s A ctive Transportation Committee (ATC) and prioritized by the City Council for funding in the City’s Capital Improvement Plan. Page 314 of 444 Item 6b The Complete Street Project advances improvements to walking, bicycling and overall traffic safety along the Higuera Street corridor from Marsh Street to Los Osos Valley Road and strengthens east-west active transportation connections via Madonna Road and the Meadow Park neighborhood. Improvements include pavement rehabilitation, refreshed roadway striping, more than 50 enhanced crosswalks, ADA curb ramp and signal upgrades, a new traffic signal at Higuera/Elks, over two miles of physically protected bike lanes, a four-lane to three-lane “road diet”1 between Bridge Street and Margarita, and other measures to reduce illegal motor vehicle speeds and improve safety for all road users. Final designs were informed by public input provided over nearly three years of project development and based on specific feedback provided by the City Council during the February 4, 2025 Council Study Session. Emergency access and evacuation needs were also a key consideration in guiding final project planning and recommendations for pre - and post-project monitoring and ongoing coordination between City Public Works and emergency services, as discussed in detail herein. The Complete Streets Project is fully designed and construction-ready, with over $9 million in secured outside grant funding, including $6.9 m illion from the Caltrans Active Transportation Program (ATP Cycle 6). The purpose of this item is to request that the Council approve the final Project plans and specifications, approve additional funding appropriations needed to advance to construction, and authorize staff to advertise th is for construction bids. 50 Higuera Widening Project: In addition to the Complete Streets Project, a separate, but related capital project is also presented herein—the revised 50 Higuera Widening Project (the “Road Widening Project”). This project has been in development for several years and was already approved for construction by the City Council on April 15, 2025. However, due to significant environmental concerns involving designated heritage trees that were discovered prior to breaking ground, the Road Widening Project is no longer considered feasible at this time as originally designed. The purpose of the Road Widening Project, which has been advanced to this stage via a Federal Highway Safety Improvement Program (HSIP) grant, is to provide width for a center turn lane on Higuera Street between Bridge Street and Elks Lane to address an ongoing collision pattern with left turns in/out of driveways. A revised design approach has been prepared to accomplish the intent of adding width for a center turn lane, albeit with a smaller area of road widening and revised roadway striping configuration. The roadway widening extents that remain will provide width to add a center turn lane at Bridge Street, which could not be accomplished without widening the roadway width. South of Bridge Street, the 50 Higuera Widening Project would effectively advance a portion of the “road diet” planned with the Higuera Complete Streets Project, but needs to be advanced prior to the Complete Street s Project and via 1 A “road diet” involves motor vehicle lane reductions or narrowing, often involving reallocation of this roadway width for other uses, such as addition of on-street parking, turn lanes, bicycle lanes or pedestrian facilities. Per FHWA, 4-lane to 3-lane road are a proven safety countermeasure with potential to reduce crashes by 19-47%. Page 315 of 444 Item 6b a separate construction contract due to federal grant restrictions. This project will carry forward improvements identified in the Higuera Complete Streets Project so that it is a seamless transition for all roadway users. Staff is requesting that Council approve the revised project plans and specifications and authorize staff to advertise the revised Road Widening Project for construction. Pending Council approval, both the Complete Streets Project and Road Widening Project would be advertised for construction in winter of 2026. The Road Widening Project would start construction in spring 2026 and take approximately one month to complete. The Complete Streets Project would most likely begin construction early summer 2026 following completion of the Road Widening Project, and continue through summer 2027. POLICY CONTEXT Higuera Complete Streets Project The City’s ATP recommends improvements to bicycling and walking along the Higuera Street corridor as a Tier 1 (highest priority) project. The Complete Streets Project advances these improvements along Higuera Street and improves connectivity to other cross-town active transportation routes to the east and west of the Higuera corridor. To date, the Complete Streets Project has been prioritized in the 2023 -25 and 2025-27 Capital Improvement Plans for funding to support planning, environmental review, design and construction, and the City’s Active Transportation Committee (ATC) identified this project as their top funding priority for FY2023-25 and FY2025-27. The Complete Streets Project supports the City’s General Plan Circulation Element and Climate Action Plan’s sustainable transportation goals and mode shift objectives, and directly aligns with the City’s current Major City Goal of “Infrastructure and Sustainable Transportation”. The Complete Streets Project also advances the planned closure of Walker Street at Higuera as recommended in the Mid-Higuera Enhancement Plan, and implements several safety improvements recommended in the City’s Draft Vision Zero Action Plan2. As noted in the Draft Vision Zero Action Plan, Higuera Street is part of the City’s High- Injury Network—the 10% of city road miles where 75% of fatal and severe injury collisions have occurred. Safety improvement recommendations were identified based on a data- driven analysis of ongoing crash trends along the Higuera Street corridor, including 11 fatal or severe injury crashes that have occurred on Higuera Street between Marsh and Los Osos Valley Road between 2018 and 2023. Over this time period, approximately 29% of all fatal crashes in San Luis Obispo occurred on this segment of Higuera Street. The recommended actions for the Complete Streets Project funding appropriation and contract award are supported by the City Council’s adopted Capital Improvement Plan 2 The Vision Zero Action Plan is currently in draft form and scheduled for final review and potential adoption by the City Council in spring of 2026. Visit the City’s Traffic Safety (Vision Zero) Website for more information on the Action Plan and traffic safety data. Page 316 of 444 Item 6b (CIP) as well as its Fund Balance and Reserve Policy. The City’s Fund Balance and Reserve Policy states that the City will maintain a designated fund for the purpose of funding infrastructure projects that contribute to improved economic development and enhanced quality of life in San Luis Obispo—the Infrastructure Investment Fund (IIF). The use of IIF funds must support a project that would not otherwise be feasible due to economic timing or issues outside of control of the project proponents or the City. The recommended use of the IIF to supplement the Complete Streets Project is consistent with this policy in that these funds would support a project that would improve community safety and mobility, and would not otherwise be economically feasible without this funding, and will offset construction cost escalations that have occurred since the project was originally scoped. This action will also leverage and avoid forfeiture of the more than $9 million in outside grant funding already secured for the project. 50 Higuera Widening Project The City’s General Plan Circulation Element and Mid-Higuera Enhancement Plan identify plans to widen various segments of Higuera Street to provide width for continuous center medians/left-turn lanes. The 50 Higuera Widening Project (“Road Widening Project”) would accomplish the goal of providing a center turn lane along the stretch of Higuera Street between Bridge Street and Elks Lane, while also advancing traffic safety recommendations from the City’s Draft Vision Zero Action Plan for this portion of Higuera Street. The Widening Project would not advance the full road widening extent as originally proposed and as contemplated in the Circulation Element and Mid-Higuera Enhancement Plan at this time due to environmental constraints but would not preclude future implementation of further road widening. With regards to both the Complete Streets and Road Widening Projects, California Government Code §830.6 establishes design immunity, protecting public entities from liability for injuries caused by a plan or design of public improvements when the design was approved in advance by a discretionary authority and supported by substantial evidence, even if the design later proves dangerous. The recommendation for the City Council to approve the project plans, and to authorize the City Engineer to approve any minor refinements to the project plans prior to construction advertisement, helps affirm the City’s design immunity in advancing these projects. DISCUSSION Higuera Complete Streets Project Background In 2021, the City Council adopted the City’s first ATP, providing a blueprint to improve bicycling and walking as modes of transportation and to support the City’s climate action, mode shift, and traffic safety goals. The ATP identifies a list of infrastructure projects organized by tier, with “Tier 1” projects representing the highest -priority projects with the greatest potential to increase bicycle and pedestrian mode share and reduce existing collision trends. Following adoption of the ATP, the City’s Active Transportation Committee (ATC) ranked the Higuera Street corridor as the top ATP Tier 1 project to advance for development. Since early 2022, staff have completed preliminary planning, Page 317 of 444 Item 6b secured over $9 million in outside grant funding, completed a traffic operations study and environmental technical studies, and conducted significant public outreach, including a Council Study Session held on February 4, 2025 (see section further below for more details on Study Session feedback). Final construction documents are now complete, and staff is requesting that the Council approve final plans and specifications and authorize advertisement of this project for construction bids. Higuera Complete Streets Project Scope The Project scope includes Higuera Street as a primary north/south backbone corridor from Marsh Street south to Los Osos Valley Road, with additional improvements along Madonna Road to the west and through the Meadow Park neighborhood to the east to complete connections between the Higuera Street corridor and other prominent active transportation routes to the east and west. A project vicinity map is provided below. The project includes improvements for all road users, traffic calming elements to address illegal speeding, as well as enhancements to improve safety. At its core, the project repurposes existing street width to improve safety, reduce severe crashes, and add protected space for people walking and biking, while maintaining access for emergency vehicles. Below are some of the improvements included in the project plans: a) Pavement repairs and roadway sealing along full project extents b) >50 upgraded/new pedestrian crosswalks, ADA upgrades at >70 pedestrian ramps, addition of ADA audible pedestrian signals at six (6) intersections c) Closure of Walker Street at Higuera/Pacific as recommended in the Mid -Higuera Enhancement Plan d) Installation of a new traffic signal at the Higuera/Elks intersection e) High-visibility traffic signal backplates with yellow reflective borders to reduce red light running at all signals within Project limits f) Addition of protected only left turns (green arrow only for lefts) at the Higuera/Los Osos Valley Road intersection g) Addition of dedicated bicycle crossing traffic signal phases on southbound Higuera Street at Madonna and Los Osos Valley Road intersections h) Addition of radar speed feedback signs to discourage illegal speeding i) Reconfiguration of Higuera Street to one auto lane in each direction from just north of Margarita Avenue to just south of Bridge Street (“road diet”) to provide width for a center median/turn lane, buffered/protected bike lanes, and to reduce speeding. No traffic lane reductions are proposed anywhere else on Higuera Street. j) Neighborhood greenway connections to Hawthorne Elementary School and Broad Street, including traffic calming within the Meadow Park neighborhood on streets with existing speeding concerns k) Addition of green bike lane markings to increase visibility at intersection and driveway conflict areas l) Installation of over two (2) miles of physically protected bike lanes (see focused discussion later in this report regarding bikeway separation). m) Addition of Emergency Vehicle Preemption (EVP) equipment at all City-controlled traffic signals currently lacking this equipment within project limits. Page 318 of 444 Item 6b Figure 1: Higuera Complete Streets Project Vicinity Map Page 319 of 444 Item 6b Final Complete Streets Project plans and specifications are provided for review. A simplified summary of the Higuera Complete Streets Project improvements is also provided as Attachment B. February 2025 Higuera Complete Streets Council Study Session Feedback On February 4, 2025, a City Council Study Session3 was held to present draft (65%-level) project designs and invite input from the community and Council to guide final designs. Specific feedback provided by the Council, is summarized as follows: 1. Higuera Street Road Diet Limits – The Council majority supported retaining the limits of the proposed 4-lane to 3-lane “road diet” on Higuera Street between Bridge Street and just north of Margarita Avenue as initially proposed, with additional direction to pursue expanding width of the center turn lane and timing of new Higuera/Elks traffic signal to improve access for drivers exiting the Chumash Village driveway. 2. Protected Bikeway Separation – The Council majority was supportive of using flex posts as vertical separation for protected bike lanes along most of the corridor but supported trying concrete curbs for bikeway separation along the “road diet” segment of Higuera Street between Bridge Street and Margarita where sufficient width is available, if financially feasible. Council also provided direction to make any concrete curbs as visible as possible and expressed support for designing concrete bikeway separation so that it could be modified or removed in the future, 3 For more information on February 4, 2025, Council Study Session, see staff report and meeting minutes (see Agenda Item 7). Figure 2: Proposed Road Diet Limits on Higuera Street Page 320 of 444 Item 6b if needed, without significant effort/cost. 3. Higuera Street & Los Osos Valley Road Design – The Council majority supported the Study Session “Option 2” design strategy for the Higuera/Los Osos Valley Road intersection, which involved adding a dedicated bicycle signal phase to separate the southbound bike lane from conflicts with right-turning vehicle traffic. 4. Madonna Overpass Bikeway – The Council majority provided feedback to staff to continue further planning and design efforts for a potential shared -use path on Madonna Road as a future project following the Higuera Comp lete Streets Project, as staffing and funding resources allow. (Preliminary concept design provided here). Staff has incorporated this feedback into the final Project plans, but would like to highlight the following updates:  Chumash Drive Access – While Council direction at the February 2025 Study Session did not recommend modifying the proposed Higuera Street road diet limits to avoid reducing traffic lanes at the Chumash Drive driveway, staff has conducted additional analysis and incorporated recommendations into the final project designs and post- project monitoring strategies to try and reduce potential concerns regarding ingress and egress for Chumash Drive residents. a) A focused analysis of traffic operations at the Higuera Street/Chumash Drive intersection for existing and future traffic conditions concluded that the Complete Streets Project would add 3-5 seconds/vehicle of additional delay on average exiting Chumash Drive during peak periods, add no additional delay entering Chumash Drive, and the intersection would operate at acceptable level of service (LOS) C or better during peak hour traffic periods with or without the project. b) A signal warrant analysis was conducted for the Higuera/Chumash Drive intersection based on California Manual on Uniform Traffic Control Devices (CAMUTCD) standards to confirm if a traffic signal could be considered for this intersection. Based on current traffic conditions and state engineering standards, a traffic signal is not currently warranted at this location. c) It is expected that the new traffic signal at the Higuera/Elks intersection will create more gaps in southbound traffic flows downstream on Higuera at Chumash Drive, which should create more opportunities for drivers to turn left when exiting Chumash Drive compared to existing conditions. The traffic operations analysis results noted above conservatively do not reflect the potential benefits of this new upstream traffic signal. d) Radar speed feedback signs have been added to the project plans, including signs placed for eastbound and westbound traffic upstream of the Chumash Drive intersection. The intent of these signs are to encourage slower speeds on Higuera Street approaching Chumash Drive, which can make it easier for drivers exiting Chumash Village to find gaps in traffic to turn onto Higuera. Page 321 of 444 Item 6b e) Additional red curb paint and NO PARKING signs were installed at Chumash Drive in 2025 to address concerns with illegal parking in the driveway line -of- wight. Final plans for the Complete Street Project further reinforce these parking restrictions and increase the width of the center turn lane, which provides more flexibility for drivers to turn left out of Chumash Drive in two stages and more clearance for emergency vehicle response. The graphics below provide more detail on the project designs at the Chumash Drive intersection. The plans also add high-visibility ladder crosswalk markings to increase visibility of pedestrians at this intersection. f) Staff recommends collecting existing and post-project data on average delays for drivers entering/exiting Chumash Village to confirm potential increases in driver delay. Results will be shared with the City Council, and potential remains to implement striping modifications in the future to restore the existing traffic lane configuration at this location if the City Council determines that potential increases in delay are unacceptable. See further detail later in this report on post-project monitoring strategies. Existing and proposed street designs at the Higuera Street /Chumash Drive intersection are further illustrated in the figures below. Figure 3: Existing and Proposed Street Configuration of Higuera Street at Chumash Drive (Cross Section View) Page 322 of 444 Item 6b Figure 4: Existing and Proposed Street Configuration of Higuera Street at Chumash Drive (Birds Eye View)  Update on Protected Bikeway Separation – The Final Plans include the addition of pre-fabricated concrete curbs for protected bikeway separation along the “road diet” segment of Higuera. Pre-cast curbs are manufactured off site, then placed directly on top of the roadway and pinned into place (imagine a large parking lot wheel stop), so that they can be moved/removed easily. However, due to cost concerns, these concrete bike curbs are included in the current construction documents as a “Bid Additive Alternate”, with flex posts included as the exclusive form of bikeway separation in the Project “Base Bid”. Concrete curbs are estimated to add $300,000 - Page 323 of 444 Item 6b $500,000 in project costs, and there is concern that there may be insufficient funding to accommodate this if bid prices exceed current estimates. For this reason, staff recommends bidding the concrete curbs as an “additive alternate”, which will help confirm the exact cost for this design option and provide flexibility for staff to (a) choose to include this component in the construction contract award if funding allows, or (b) install flex posts only as the “base bid” if current funding cannot support adding the concrete features. Figure 5: Example Photo of Pre-Cast Concrete Bikeway Curbs in Bid Additive Alternative for Higuera (Bridge to Margarita)  Update on Madonna Shared-Use Path – Staff has progressed as far as current funding allows for development of preliminary plans for a future shared-use path along the Madonna Road Overpass. While the ATC, City Council, and community members have expressed clear interest in advancing this as a future project, no funding is currently programmed in the 2025-27 Financial Plan to advance with further feasibility studies, environmental review, or formal design work. Staff has a coordination meeting scheduled with Caltrans in early 2026 to discuss preliminary concepts, feasibility, and project development path moving forward, which will help guide future staffing and financial resource planning if Council supports prioritizing this project for funding in future budgeting opportunities. It should be noted that there are several complex considerations and unknowns that may affect the path forward with this project, including potential constraints with modifying the existing Madonna Road Overcrossing bridge structure, drainage and utility conflicts, and need for Caltrans review, permitting and approval of proposed designs, including a likely need for approval of features that do not meet Caltrans design standards for traffic lane and shoulder widths, which are more conservative than requirements for a local city street. The current design approach for the Higuera/Madonna intersection provides benefits with the current bikeway configuration on Madonna Road, while also allowing for a seamless connection to a future shared-use path on the north side of Madonna Road, if this path extension can be constructed in the future, avoiding the need for costly reconstruction of this intersection again in the future. Page 324 of 444 Item 6b Background on 50 Higuera Widening Project and Revised Design On April 15, 2025, the City Council approved plans and specifications and authorized staff to advertise the 50 Higuera Widening Project for construction. Given recent City experience with tree conflicts on major capital projects, staff elected to reevaluate potential impacts on the heritage trees located adjacent to the project before initiating construction and commissioned an updated arborist evaluation prior to breaking ground. As originally planned, this project included roadway widening along a 600-foot stretch of Higuera Street fronting the Caltrans District 5 offices at 50 Higuera Street. The primary intent of this road widening was to provide additional width for a two-way left turn lane— the existing roadway has two lanes in each direction and no left turn lanes, which contributes to an ongoing trend of crashes at driveways and intersections. For reference, the proposed limits of road widening, as originally planned, are shown in the figure below (Figure 4). The City previously secured federal grant funding through the Highway Safety Improvement Program (HSIP), completed environmental review, plans and specifications, and secured easements from Caltrans needed to const ruct the Project. However, staff have since encountered significant and unresolvable constraints that will not allow for construction of this project as originally envisioned. Page 325 of 444 Item 6b Figure 5: 50 Higuera Road Widening Extent as Originally Planned Environmental Constraint Precluding Original 50 Higuera Roadway Widening Design Both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental review were previously completed for the Road Widening Project. As part of the review, an independent Arborist Report was prepared in 2016 to evaluate potential impacts to existing trees that exist on Caltrans property along the 50 Higuera Street frontage, including seven (7) Heritage Trees4. These trees were planted between 1930 and 1950 and officially designated as Heritage Trees by the City Council on September 7, 2010, due to their unique addition to the historic and horticultural development of the city. More details are provided in the September 7, 2010, staff report and corresponding resolution. 4 The City’s website provides more information on the Heritage Tree Program. A GIS map with more information on specific heritage trees in San Luis Obispo is also available here. Page 326 of 444 Item 6b Figure 6: Incense Cedar and California Sycamore Heritage Trees Fronting 50 Higuera Street The road widening would encroach near these trees, but the 2016 Arborist report concluded that the trees could be preserved by modifying the alignment of a portion of the new sidewalk and by implementing a tree protection plan during construction. Preservation of these trees was an important assumption in the CEQA/NEPA environmental impact determination for the original project. Project designs and construction specifications were previously finalized in accordance with these recommendations. Considering significant challenges with unanticipated tree conflicts encountered during construction of other recent City capital projects (including the Mission Plaza Enhancements Project and the Cultural Arts District Parking Structure), in spring of 2025, staff decided to commission an updated Arborist Report from a third-party consultant out of an abundance of caution before initiating construction on the 50 Higuera Widening Project. Unfortunately, the updated 2025 Arborist Report presented more troublesome findings regarding tree conflicts and concluded that (a) the proposed road widening would present a severe risk to several of these Heritage Trees, and (b) even a well-crafted tree protection plan could not reasonably shield these trees from a high likelihood of long-term decline, structural instability, or death. The City Arborist has conducted additional field observations and reviewed the updated 2025 Arborist Report and concurs with the finding that the road widening project as originally planned would present significant risk to these Heritage Trees that cannot be effectively mitigated. Per Section 12.24 of the City Municipal Code (Tree Regulations), designated heritage trees must be protected and maintained and are prohibited from removal unless the City Arborist authorizes the removal based on poor tree health or hazard to public safety or property. At this time, there is insufficient justification to remove these trees based on these factors. Removal of these Heritage Trees or proceeding with construction despite the documented risk of causing severe harm to these trees would not only conflict with City policy but would also conflict with the previous CEQA and NEPA environmental approvals for this project. Page 327 of 444 Item 6b Based on these concerns, staff has concluded that the 50 Higuera Widening Project could not proceed as originally planned, and a modified project design is recommended with this staff report. 50 Higuera Widening Project Redesign Staff is proposing a revised design for the Road Widening Project that would accomplish the primary intent of this safety project—provide a center left turn lane along this street segment—through roadway restriping and a smaller area of road widening near Bridge Street where there are no tree impacts. The modified design would involve restriping the two (2) existing northbound traffic lanes on Higuera Street between Elks Lane and Bridge Street to one (1) through traffic lane and one (1) one center turn lane. This design would provide the safety benefits of providing a two-way left-turn lane, as required per the HSIP grant, without requiring the full road widening and risking tree impacts. Essentially, this would implement half of the future road diet proposed with the Higuera Complete Streets Project (see further discussion on the Complete Streets Project below). Attachment E shows the typical street cross section for (a) the roadway widening project as originally envisioned, (b) the revised project design, and (c) the proposed ultimate cross section with completion of the future Higuera Complete Streets Project. Final plans and specifications for the revised project have been prepared, and the modified design approach has been approved by Caltrans, who administers the federal HSIP grant program in California. The revised design continues to meet the safety objectives and grant requirements of the HSIP program. Staff is now requesting that Council approve these construction documents and authorize staff to advertise the project for construction bids. Relationship between Higuera Complete Streets and 50 Higuera Widening Projects Ideally, the road widening proposed with the 50 Higuera Widening Project would simply be added to the Complete Streets Project plans and implemented cohesively under a single construction contract. However, because the 50 Higuera Widening Project includes funding from a federal HSIP grant, incorporating this work into the Complete Streets Project would in turn “federalize” the Complete Street s Project, adding the need for additional environmental review per federal standards (NEPA), more complex and onerous bidding requirements, financial reporting, and administrative obligations that come with a federally funded project. Failure to construct the 50 Higuera Widening improvements per federal requirements could require the City to re-pay the approximately $400,000 in HSIP grant funds already expended for pre-construction work. For this reason, staff recommends advancing these improvements as two stand-alone construction projects. See “Next Steps” discussion below for more information on construction timing of each project. Emergency Response and Evacuation Considerations Based on a detailed review of project plans and analysis of evacuation considerations Page 328 of 444 Item 6b with city emergency services, staff does not expect the proposed improvements to substantially interfere with regular emergency response or the ability of properties to effectively evacuate along the Higuera Street corridor during an emergency event. While certain street design strategies—specifically the proposed traffic lane reductions (“road diet”) and traffic calming features (i.e. lane narrowing, protected bike lane vertical elements)—are likely to result in modest increases in evacuation times compared to existing conditions, total evacuation clearance times along the Higuera Street corridor are estimated to remain within typical benchmarks used for urban evacuation planning. Still, as discussed further below, Public Works staff is committed to ongoing monitoring and coordination with local emergency services during and after construction of these improvements, and is prepared to implement minor refinements to projec t designs if needed to address unanticipated concerns. See detailed discussion below for more information on emergency response and evacuation analysis. While the 50 Higuera Widening and Higuera Complete Streets Projects have been designed to ensure compliance with all state and local requirements for emergency vehicle access, as discussed at the February 2025 City Council Study Session, it is also important to review final design details closely with emergency service provide rs, specifically the City Fire Department (SLO Fire) and Police Departments (SLO PD) to (a) minimize potential for increases in emergency response delays and (b) ensure that the proposed Project would not present any significant impediment to the ability t o evacuate during a large-scale emergency event. Balancing street designs that prioritize day-to-day traffic safety while simultaneously accommodating rapid emergency response and surge traffic during potential evacuation events is a constantly evolving challenge. Design elements that are proven traffic safety countermeasures—such as narrower auto lanes, road diets, separated bike lanes, and enhanced pedestrian crossings—can reduce illegal speeding and improve safety under normal conditions, but may also introduce friction for emergency vehicles that need to move quickly and bypass traffic during emergency events. City Public Works and emergency services (SLO Fire and SLO PD) have been collaborating closely on this topic through development of the Draft Vision Zero Action Plan and will continue to work in unison to make informed recommendations on each roadway improvement that balance these priorities with an overarching goal to improve overall public safety. Based on previous review of the Higuera Complete Streets Project with emergency services, the following design refinements have been incorporated into final project plans to reduce potential for impacts to day-to-day emergency response: a) Flex posts are used as the primary form of protected bikeway separation. Flex posts have a narrow profile and can be easily adjusted/removed if needed or mounted by a vehicle in a dire emergency. Bikeway vertical elements are omitted at intersection approaches, near fire hydrants, and where raised center medians exist to retain extra road clearance for emergency vehicles. b) Wherever possible, the width of the striped center turn lane/median on Higuera has been increased to allow more flexibility for emergency vehicles to use this Page 329 of 444 Item 6b space to bypass other vehicles during an emergency. c) Emergency Vehicle Pre-emption Equipment (EVP)5 will be added as part of the project at all city-owned traffic signals within the project limits that currently lack EVP equipment, such as Higuera/South, Higuera/Madonna and Higuera/Margarita. GPS EVP detection equipment is added (in addition to existing infrared-based detection) at select intersections to improve upstream detection and add more time to clear traffic ahead of an emergency vehicle. d) EVP equipment upgrades for SLO Fire and SLO PD vehicl es have been funded as part of the South/King Crossing CIP Project and are expected to be installed prior to completion of the Higuera Complete Streets Project. e) The closure of Walker at Higuera has been designed in a way that closes the street to unauthorized vehicles, while preserving pedestrian safety and retaining access for maintenance and emergency response when needed by using removable bollards. Further, the future addition of Fire Station #5 near the Avila Ranch development, which could be operational as an interim station within the next two to three years, is expected to significantly improve the day-to-day emergency response capabilities within the southern portion of the city, including response to the South Higuera corridor. As part of the City’s in-progress work on a Citywide Evacuation Study, a focused evacuation study was prepared for the Higuera Street corridor (Attachment C) to evaluate potential changes to evacuation times with addition of the Complete Streets Project. The evacuation study, prepared by the San Luis Obispo Community Fire Safe Council, models evacuation conditions for the following potential emergency events that could impact Higuera Street:  Evacuation Scenario A: A fire or flooding event along San Luis Obispo Creek affecting creek-adjacent neighborhoods west of Higuera Street between Prado Road and Los Osos Valley Road (Evacuation Zone SLO-024)6.  Evacuation Scenario B: A wildfire in the South Hills Open Space (Evacuation Zone SLO-025), requiring evacuation of the Margarita Area, Chumash Village and surrounding neighborhoods. This analysis conservatively assumes the worst-case evacuation demand, with a potential large-scale emergency event occurring at a time where most residential and commercial properties are occupied and need to evacuate immediately. To evaluate the effects of the Complete Streets Project, the roadway capacity on Higuera Street was modified to reflect 5 EVP equipment allows emergency vehicles to communicate with a downstream traffic signal to prioritize green lights in the direction the vehicle is traveling. This helps queued traffic to clear out of the way of an approaching emergency vehicle and improves safety for first responders by holding red lights for all conflicting intersection approaches. A key recommendation in the City’s Draft Vision Zero Action Plan (Post-Crash Care Chapter) is to invest in EVP upgrades throughout the city to improve EMS response times. 6 Evacuation Zone boundaries can be viewed on the following map, or the www.prepareslo.org website. Page 330 of 444 Item 6b the proposed 4-lane to 3-lane road diet between Bridge Street and Margarita and assuming a 5 mph reduction in operating speeds along the full Higuera Street corridor due to the proposed traffic calming and complete streets design features. The table below summarizes the estimated evacuation clearance times for each emergency event with and without the Complete Streets Project. Table 1 – Evacuation Clearance Times with and without the Higuera Complete Streets Project Zone Emergency Type Evacuation Clearance Time Change Existing Conditions Complete Street Project SLO-024 (SLO Creek w/o Higuera Street) Flood 107 min 117 min +10 min Fire 100 min 114 min +14 min SLO-025 (South Hills) Fire 95 min 103 min +8 min The analysis estimates that during a worst-case evacuation event, the addition of the Complete Streets Project could increase evacuation clearance times by approximately 8 - 14 minutes compared to existing conditions. Actual evacuation times would vary based on incident conditions, evacuation activation notice, and public response; however, the modeled clearance times provide a reasonable, if not conservative, planning-level estimate consistent with accepted practices to guide emergency preparedness and planning decisions. Currently, there are no specific Federal, State or locally adopted performance thresholds for maximum evacuation times; however, the evacuation study states that the modeled evacuation clearance times remain within two hours, which is commonly used as a performance benchmark for urban neighborhood-scale evacuation planning. It is important to note that every evacuation involves numerous variables that can affect overall clearance times. The type of incident, such as flood, fire, hazardous materials release, or civil disturbance, presents different operational challenges, and evacuation timelines may need to be adjusted accordingly. Under certain conditions, evacuations could reasonably take longer than two hours; however, the two-hour benchmark is used as a planning assumption, providing a consistent baseline against which evacuation strategies, infrastructure constraints, and operational decisions can be evaluated. The study concludes that with proper evacuation noticing, effective public communication and coordinated traffic management strategies, the transportation network is expected to continue to function acceptably during an emergency evacuation event with or without the Complete Streets Project. To minimize potential increases in emergency response and evacuation times in conjunction with the Complete Streets Project, staff propose the following actions prior to and during construction: Page 331 of 444 Item 6b 1. Evacuation Signal Timing Plans: Prepare pre-programmed traffic signal timing plans at intersections along the Higuera Street corridor that could be activated during an evacuation event to prioritize movement of traffic away from the hazard area. (Transportation Engineering staff will implement these timing plans prior to start of construction). 2. Construction Coordination: a. Schedule a pre-construction meeting between City Public Works and emergency services staff to coordinate project construction phasing, construction schedule and strategies to minimize impacts to emergency response during construction activities. (Public Works staff will arrange a pre- construction meeting with local emergency services representatives and continue with regular updates and communication during construction). b. Retain at least one lane open to traffic in each direction on any primary emergency response routes affected during construction. (Project bid documents require that the contractor always retain one lane of traffic in each direction on Higuera Street and Madonna Road, unless otherwise approved by City emergency services. The construction documents also require the most disruptive work on these major roadways to be scheduled as night work, where feasible). In addition to the above recommendations, staff will also monitor post-construction performance and will be prepared to quickly implem ent refinements to project designs as needed if any concerns are identified by local emergency response providers. See “Next Steps” section below for further detail. Next Steps Higuera Complete Streets Project Next Steps and Monitoring Strategies On January 29, 2025, the California Transportation Commission (CTC) approved the allocation of $6.9 million in Caltrans ATP grant funding awarded to the Complete Streets Project construction. With Council approval of the recommendations presented in this staff report, staff will advertise this project for bids during winter of 2026, with plans to award the construction contract and start construction in late spring/early summer 2 026. Project construction is expected to take up to one year to complete, including lengthy lead times for traffic signal equipment. Through the City’s SLO in Motion Program, updates to the community will be provided prior to and throughout construction to notify the public and emergency service providers of upcoming construction activities and potential travel delays. Where feasible, the most disruptive road work will be scheduled as night work to minimize impacts to road users. Page 332 of 444 Item 6b As a requirement of the Caltrans ATP grant, staff will be conducting pre- and post- construction data collection for the Complete Streets Project to track changes in auto/ped/bicycle traffic volumes and vehicle speeds. In addition, staff will conduct the following monitoring after construction to evaluate performance and need for design refinements, if any: a) Monitor average vehicle delays and driver behavior along the “road diet” segment of Higuera between Madonna and Margarita Street, including delays for drivers exiting the Chumash Village driveway (0-12 months post-construction) b) Review crash data compared to pre-project conditions (12-18 months post- construction) c) Observe traffic operations, bicycle and pedestrian user behavior to identify if any minor sign/striping/traffic signal refinements are needed (0-12 months post-construction) d) In coordination with SLO Fire, invite feedback on any observed impacts to emergency response and compare pre- and post-project EMS response times to destinations along the Higuera Street corridor (0-24 months post-construction) Because most of the street design changes involve pavement markings and low-cost elements, such as flex posts, if needed, minor refinements can generally be implemented quickly and at a relatively low-cost following construction. Staff will prepare a summary of the post -construction monitoring results 12 months after construction completion to inform the Council and community on project performance and proposed design refinements, if any. 50 Higuera Widening Next Steps A scope change request has already been approved by Caltrans, which will allow the City to advance the revised 50 Higuera Widening project and deliver on the original HSIP grant obligations for this project. Following approval by the City Council, staff will request construction authorization from Caltrans and advertise the project for construction winter of 2026. Construction is expected to begin by spring 2026 and take approximately one month to complete. Construction of the Higuera Complete Streets Project is expected to begin summer of 2026 and project schedules and areas of work will be coordinated closely to avoid conflicts. Potential for Future Road Widening While the traffic analysis prepared for the Higuera Complete Streets Project indicates that Higuera Street between Bridge and Margarita can operate within acceptable levels of service into the 20+ year planning horizon as a three -lane roadway, this assumes that the City’s long-term land use plan and transportation plans are advanced as anticipated per the adopted General Plan Land Use and Circulation Elements. If future actions approve a higher level of development intensity and/or significantly delay the Prado Road/US 101 Interchange, the segment of Higuera Street between Margarita and Bridge Street may need to be reconfigured to two lanes of traffic in each direction to avoid levels of traffic Page 333 of 444 Item 6b congestion and delays that exceed the City’s adopted thresholds. It would not be possible to provide two lanes of traffic in each direction and retain a center turn lane on Higuera between Elks Lane and Bridge Street without revisiting the larger road widening originally contemplated near 50 Higuera. If this City Council (or a future City Council) desires to revisit the full road widening as originally envisioned along the 50 Higuera frontage, several of the existing Heritage Trees would need to be removed, which would require additional environmental review, approval by Caltrans, and City Council approval, including a potential action to remove these trees from the list of designated city heritage trees. Previous Council or Advisory Body Action Higuera Complete Streets Project Active Transportation Committee (ATC) Input The ATC first reviewed the Higuera Complete Streets project on February 6, 2022, to provide early input on the project scope and concept designs. The ATC then provided review and comment on 65%-level designs on May 16, 2024. The ATC’s key recommendations to staff following review of 65% designs included: 1. Preference for the Higuera/Los Osos Valley Road intersection design alternative featuring addition of a dedicated southbound bicycle signal phase 2. Support for the Higuera road diet limits as proposed between Margarita and Bridge Streets 3. General preference for more permanent (concrete) vertical separation for protected bikeways, with interest in providing more gaps in bikeway barriers to allow cyclists to merge out of bike lanes to pass other riders and to merge across traffic lanes ahead of intersections 4. Desire for more significant bicycle safety improvements, if feasible, at the Higuera/Suburban intersection, which has a history of bicycle right-hook collisions, including a recent fatal collision 5. Preference for staff to continue further design refinement and coordination with Caltrans on a design concept for Madonna Road that includes protected facilities, ideally as a two-way shared-use path on the north side of the roadway The final plans reflect most of the ATC’s recommendations, except for (a) use of mo re permanent concrete barriers for bikeway separation throughout the project, (b) addition of separated bikeways on the Madonna overpass, and (c) incorporation of more robust improvements at the Higuera/Suburban intersection. Updates on these items are summarized as follows: a) As described above, concrete bikeway separation is included in the plans as a bid additive alternate for the segment of Higuera between Bridge and Margarita only, with flex posts used for bikeway separation elsewhere. This recommendati on is based on cost constraints and concerns with using rigid barriers where street width constraints require use of minimum-allowed auto lane and bike lane widths on a Page 334 of 444 Item 6b higher-speed street, which increases chance of accidental bicycle and vehicle strikes. b) While staff pursued strategies to provide a physically separated bikeway along the Madonna Road Overpass, this was ultimately not feasible within the cost and schedule constraints of the current grant-funded project. Staff will continue to coordinate with Caltrans and explore feasibility of a future shared-use path on Madonna Road as resources allow. c) Staff evaluated various options to address vehicle vs. bicycle collision concerns at the Higuera/Suburban intersection. The ideal ultimate improvement would involve widening the intersection to provide width for a dedicated northbound right -turn lane and/or provide a protected bicycle crossing area; however, this requires off - site right-of-way acquisition and utility relocations that are not feasible at this t ime. An interim improvement is planned which will modify the Higuera/Suburban traffic signal to provide protected left turn phasing (left turns on green arrows only) and an electronic illuminated sign to provide further warning to right-turning vehicles to yield to bicyclists. A construction contract is already awarded for this minor traffic signal modification and work should be complete within the next two months. Regular project updates have been provided to the ATC following the February 2025 Council Study Session and leading into this final hearing regarding the project. City Council Input As noted previously, the City Council provided feedback and policy direction on the Complete Streets Project at a Study Session on February 4, 2025. More detailed information on the Study Session is provided previously in this report. 50 Higuera Widening Project The City Council previously approved the original project on April 15, 2025, as a consent item. Staff is returning to seek authorization to proceed with the redesigned project. Public Engagement Higuera Complete Streets Project Over the last three years, a series of community outreach activities have been provided for the Higuera Complete Streets project. The public engagement strategy consisted of a combination of both formal and less-formal outreach activities (including weekend, afternoons and weeknights) to maximize opportunities for feedback and to ensure that input reflects the diverse voices of the full San Luis Obispo community. For those who were not able to attend in-person events, staff also collected input via email and phone. Public engagement activities included two neighborhood pop-ups (at Food 4 Less Market and Meadow Park), two open house workshops, a resident forum hosted by the Chumash Village community, a site meeting with a property owner affected by the proposed Walker Page 335 of 444 Item 6b Street Closure, multiple presentations to the ATC, a City Council Study Session, and a project webpage. For a comprehensive description of outreach activities and a summary of input, see the February 2025 Council Study Session Agenda Packet, Attachment G. Staff has endeavored to incorporate this feedback into the project designs, where feasible, including a redesign of proposed traffic calming strategies within the Meadow Park neighborhood based on initial feedback from community members. 50 Higuera Widening Project Opportunities for public input regarding plans to widen Higuera Street between Bridge Street and Elks Lane were provided as part of the 2014 General Plan Land Use and Circulation Element (LUCE) Update, as part of the Mid -Higuera Enhancement Plan, and with approval of CIP project funding appropriations through several recent City Financial Plans. This project was on the Council Agenda for the October 17, 2023, meeting to approve easement acquisitions, and again on the April 15, 2025, Council Agenda to approve the original project plans. This agenda item provides an additional opportunity for the public to provide input on the revised 50 Higuera Widening Project prior to implementation and will follow all required postings and notifications. The public may have an opportunity to comment on this matter at or before the meeting. CONCURRENCE The Complete Streets and Road Widening Project details and this report have been reviewed and have concurrence from the City Public Works Department, City Arborist, Police and Fire Departments, City Attorney’s Office, and City Administration. See previous section on “Emergency Response and Evacuation Considerations” for more details on collaboration with emergency services. ENVIRONMENTAL REVIEW Higuera Complete Streets Project Environmental analysis for the Complete Streets Project was conducted by Rincon Consultants, Inc. Based on evaluation of the project’s design details, the analysis concluded that the project is eligible for a Class 1 Categorical Exemption (CE) under California Environmental Quality Act (CEQA) Section 15301(c) (Existing Facilities). A Notice of Exemption (NOE) was filed with the County Clerk on July 25, 2025. As discussed in detail at the February 2025 Council Study Session, the Project will implement traffic signal modifications that will increase vehicle delay at the Higuera Street/Los Osos Valley Road intersection, which is already projected to operate at a level of service (LOS) below the City’s adopted target threshold of LOS D or better in the future with or without the Complete Streets Project. Acceptable LOS will be retained in the short-term; however, this LOS deficiency is projected to occur in the near-term (5-10 year) horizon with or without the Project. Congestion at this intersection is expected regardless of the project, and the project does not create a new environmental impact under CEQA. Pursuant to CEQA policy, LOS or other measures of automobile delay are no longer used to define significant environmental impacts. To retain acceptable LOS in the future, either Page 336 of 444 Item 6b (a) the Higuera/Los Osos Valley Road intersection would need to be widened to add additional vehicle lanes, (b) the proposed Los Osos Valley Road Bypass Road would need to be constructed, or (c) the bicycle signal phase proposed with the Higuera Complete Street Project would need to be eliminated in the future. However, in approving the Project, the Council will be formally accepting this local policy deficiency for motor vehicle LOS at this intersection, which is acknowledged in the draft resolution provided as Attachment F. 50 Higuera Widening Project Both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental review have been completed for the 50 Higuera Widening project. The project was determined to be Categorically Exempt per CEQA Guidelines Section 15301 (Class 1 Exemption – Existing Facilities), and a Notice of Exemption has been filed with the County Clerk’s Office. Caltrans, assuming responsibility as lead agency for environmental review pursuant to NEPA for federally funded projects in California, determined that the project would not pose any significant impacts on the environment, approving a Categorical Exclusion (CE) in 2014. The re-design of this project retains this Categorically Exempt determination, as previously documented. The modified project does not introduce any changes that would create potential for new or exacerbated impacts beyond what was evaluated under the previous project description. With a much smaller area of road construction, the modified project would have less overall effect on the built and/or natural environment than the previous project design. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Fiscal Analysis: The tables below summarize the project costs and funding for the Higuera Com plete Streets and 50 Higuera Widening Projects. Page 337 of 444 Item 6b Higuera Complete Streets Project Table 2 – Fiscal Impact Summary for Higuera Complete Streets (No. 2091057) Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund Capital Outlay - LRM (Higuera Complete Street, No. 2001057) $3,062,560 $3,062,560 $0 Capital Outlay - LRM (Prado Creek Bridge Project, No. 2091252) $2,277,019 $500,000 $1,777,019 Capital Outlay (ATP Implementation, No. 2000608) $88,650 $88,650 $0 Capital Outlay - LRM (ATP Implementation, No. 2000608) $116,197 $116,197 $0 Capital Outlay - LRM (Vision Zero Implementation, No. 2000073) $144,742 $100,000 $44,742 Capital Outlay - LRM (Traffic Signal Maintenance & Replacements, No. 2001003- 02) $100,000 $50,000 $50,000 *Capital Outlay - LRM (Infrastructure Investment Fund) $14,658,406 $2,000,000 $12,658,406 State $0 Caltrans ATP Grant (Higuera Complete Street, No. 2001057) $6,951,000 $6,951,000 $0 SLOCOG Grant (Higuera Complete Street, No. 2001057) $2,501,910 $2,501,910 $0 Other $0 Water Fund (Water Valve Cover Adjustments, No. 2001005) $314,748 $120,000 $194,748 Sewer Fund (Sewer Valve Cover Adjustments, No. 2000084) $161,509 $50,000 $111,509 Total $30,413,041 $15,540,317 $14,872,724 *Current Infrastructure Investment Fund (IIF) balance is $14,658,406, with an estimated balance of $11,158,406 on July 1, 2026 following a planned appropriation to Prado Creek Bridge project for FY2026- 27. An additional $1,212,229 of FY 2024-25 General Fund Unassigned Fund Balance is proposed to be allocated to the IIF as part of the FY 2024-25 Second Quarter Budget Report, which will be reviewed by the Council on February 17, 2026. Page 338 of 444 Item 6b Table 3 – Detailed Cost and Funding Summary for Higuera Complete Streets Project (No. 2091057) Higuera Complete Street Project (No. 2001057) Costs & Funding Summary State Grant General Fund Water Fund Sewer Fund Total Costs PROJECT COSTS Base Bid Construction Estimate $9,452,910 $3,082,221 $75,000 $25,000 $12,635,131 Construction Contingency $0 $1,226,136 $45,000 $25,000 $1,296,136 Construction Management $0 $1,000,000 $0 $0 $1,000,000 Materials Testing $0 $150,000 $0 $0 $150,000 Printing & Advertising $0 $1,000 $0 $0 $1,000 Public Relations $0 $100,000 $0 $0 $100,000 Base Bid Total Estimate $9,452,910 $5,559,357 $120,000 $50,000 $15,182,267 Add Alt A Construction Estimate $0 $325,500 $0 $0 $325,500 Add Alt A Contingency $0 $32,550 $0 $0 $32,550 Additive Alternative A Total Estimate $0 $358,050 $0 $0 $358,050 Total Construction (Base + Add Alt A) $9,452,910 $5,917,407 $120,000 $50,000 $15,540,317 PROJECT FUNDING Available Project Account Balance $9,452,910 $3,062,560 $0 $0 $12,515,470 New Funding Request $0 $2,854,847 $120,000 $50,000 $3,024,847 TOTAL PROJECT BUDGET $9,452,910 $5,917,407 $120,000 $50,000 $15,540,317 (1) See expanded Project Cost and Funding table in Attachments. Construction Costs The Higuera Complete Streets Project plans and specifications are structured with a Base Bid and a Bid Additive Alternate A—the additive alternate adds concrete curbs for protected bike lane separation along a portion of Higuera Street. While staff hopes to have sufficient funding to award the full scope of improvements, this strategy provides flexibility to award only the Base Bid up to the Publicly Disclosed amount of $12,960,700 in compliance with Public Contract Code Section 20103.8(c) if the lowest responsive bid exceeds available funding resources. As shown in the table above, the total estimated Project cost is $15,540,317, including the Base Bid and Bid Additive Alternate construction contract costs, construction contingencies and support costs (contract construction management support, materials Page 339 of 444 Item 6b testing, etc.). Currently, there is $12,515,470 in available funding in the Higuera Complete Street Project account, including $9,452,910 in outside grant funding consisting of $6.95 million in Caltrans ATP Grant funding and $2.5 million from SLOCOG Community Betterments Grant funding. The SLOCOG funds were awarded as the result of two cycles of competitive call-for-projects for Community Betterment grants—a program intended to support projects of local significance. Staff is requesting authorization to transfer an additional $1,024,847 in funds from other active CIP project accounts to the Higuera Complete Street Project (No. 2001057), as follows: a) $500,000 from the Prado Creek Bridge Replacement (No. 2091252) b) $204,847 from the Active Transportation Plan Implementation (No. 2000608) c) $100,000 from the Vision Zero Implementation (No. 2000073) d) $50,000 from the Traffic Signal Maintenance & Replacements (No. 2001003) e) $120,000 from the Water Valve Cover Adjustments (No. 2001005) f) $50,000 from the Sewer Valve Cover Adjustments (No. 2000084) The funding transfer from the Prado Creek Bridge Project represents the cost for the new traffic signal at Higuera/Elks—this signal is required as a mitigation measure during removal/replacement of the bridge and was originally included as part of the bridge project scope and costs; however, the Higuera Complete Street Project is moving forward sooner and will install this signal first. The other transfers are from CIP project accounts that support the types of improvements included in the Higuera Complete Street Project, such as sewer/water valve cover adjustments during paving/sidewalk reconstruction, traffic safety improvements on the high-injury network as identified in the Draft Vision Zero Action Plan, and traffic signal modernizations (i.e. ADA-compliant pedestrian signals, high-visibility signal backplates, traffic signal phasing adjustments). In addition, staff is requesting authorization to transfer an additional $2,000,000 in funds from the Infrastructure Investment Fund to fully fund construction. There is a current balance of $14,658,406 in the Infrastructure Investment Fund, and a projected balance of $11,158,406 on July 1, 2027, following a planned appropriation of $3,500,000 to the Prado Creek Bridge project in FY 2026-27. Staff is recommending allocation of $1,212,229 of FY 2024-25 General Fund Unassigned Fund Balance as part of the FY 2024-25 Second Quarter Budget Report that will be presented to the City Council on February 17, 2026, before this item is heard (see Item 6a of this Agenda Packet). The table below shows the current Infrastructure Investment Fund balance, funding transactions proposed in the February 17, 2026 Council items on the Higuera Complete Streets Project and FY2024-25 General Fund Unassigned Fund Balance and planned capital project earmarks from this fund in the coming years. Page 340 of 444 Item 6b Table 4 –Infrastructure Investment Fund (IIF) Balance and Planned Expenditures FY 2025-2026 IIF Fund Summary Payment Amount Ending Balance Starting Fund Balance FY 25-26 $14,658,406.00 $14,658,406.00 Higuera Complete Streets Project FY25- 26 (March 17, 2026) $(2,000,000.00) $12,658,406.00 FY 24-25 Unassigned Fund Balance FY25-26 (March 17th, 2026) $1,212,229.00 $13,870,635.00 FY 2026-27 Capital Reserve (July 1, 2026) $787,771.00 $14,658,406.00 Prado Bridge Widening (Design) FY 26- 27 (July 1, 2026) $(3,500,000.00) $11,158,406.00 Prado Bridge Widening FY 27-28 (July 1, 2027) $(11,158,406.00) $ - Maintenance Costs The addition of protected bike lanes with the Complete Street Project is expected to increase ongoing maintenance costs for contract sweeping and repair/replacement of bikeway flex posts. Based on typical costs for flex posts repairs and contract street sweeping within protected bike lanes at other locations within the city, th is project is expected to incur an additional annual maintenance cost of approximately $50,000 - $70,000. Staff is requesting authorization to use contingency funds from the Complete Street Project CIP account that may remain unspent following construction (up to $200,000) to support increased maintenance needs. Ongoing funding for additional maintenance obligations will be requested as part of the 2027 -29 Financial Plan. If additional maintenance funds cannot be secured using unspent contingency funds or with future budget requests, regular bikeway sweeping will be scheduled as frequently as resources allow, with spot sweeping performed when specific hazards are reported. Funding & Cost Breakdown The following tables break down the Complete Street Project funding by source and construction costs by project feature: Table 5 – Higuera Complete Street Cost Breakdown by Fund Source Project Funding by Source % Local 39% General Fund (Non-LRM) 2% General Fund (LRM) 36% Water & Sewer Funds 1% Outside Grant 61% State ATP Grant 45% SLOCOG Grant 16% Total 100% Page 341 of 444 Item 6b Table 6 – Higuera Complete Street Cost Breakdown by Feature Construction Cost by Project Feature % of Total Paving 29% Pedestrian Curb Ramps, Sidewalks, Crosswalk Beacons 27% Protected Bike Lane – Flex Posts 3% Protected Bike Lane – Concrete Curbs (Bid Add Alt) 2% Traffic Signal Improvements 13% Signs, Striping & Traffic Calming 16% Other (Temporary Traffic Control, Mobilization, etc.) 10% Total Construction Costs 100% As shown above, the majority (61%) of project costs are funded by outside grant funding, which was secured based on the project’s benefits to walking, bicycling, and traffic safety. Two thirds (66%) of construction costs are related to essential road pavement maintenance, pedestrian accessibility upgrades (ADA curb ramps & sidewalk repairs) and misc. construction support elements (construction traffic control, mobilization, etc.). If the City were to implement this project with only the essential maintenance/accessibility improvements and no other active transportation or traffic safety “betterments”, the project would not be financially feasible with local funding alone. The outside grant funding secured for this project allows the City to make significant progress supporting its active transportation and safety goals, while also accomplishing essential maintenance needs at the same time. 50 Higuera Widening Project Table 7 – Fiscal Impact Summary for 50 Higuera Widening Project (No. 2091294) Funding Sources Total Budget Available Current Project Funding Request Remaining Balance Annual Ongoing Cost General Fund General Fund (Capital Outlay) $2,760 $2,760 $0 $0 Local Revenue Measure (LRM) $22,600 $0 $22,600 $0 Other: State Grant (SLOCOG USHA Grant) $663,536 $335,431 $328,105 $0 Federal Grant (HSIP) $67,500 $42,450 $25,050 $0 Citywide TIF $859 $859 $0 $0 Total $757,255 $381,500 $375,755 $0 Page 342 of 444 Item 6b Table 8 – Detailed Cost and Funding Summary for 50 Higuera Widening Project (No. 2091294) 50 Higuera Widening Account (2091294) Totals General Fund General Fund (LRM) State Grant (SLOCOG USHA) Federal Grant (HSIP) Citywide Traffic Impact Fee (TIF) Project Costs Construction Estimate $2,760 $268,931 $42,450 $859 $315,000 Contingencies (20%) $63,000 $63,000 Construction Costs $2,760 $0 $331,931 $42,450 $859 $378,000 Materials Testing $3,000 $3,000 Printing & Advertising $500 $500 Total Project Costs $2,760 $0 $335,431 $42,450 $859 $381,500 Project Funding Current Balance $2,760 $22,600 $663,536 $67,500 $859 $757,256 Remaining Balance $0 $22,600 $328,105 $25,050 $0 $375,756 The Road Widening Project construction cost is estimated at $381,500, including contingencies and support costs (materials testing, printing and advertising). There is a current balance of $757,256 in the Project Account, including General Fund, State Urban Highway Account (USHA) grant funds administered by the San Luis Obispo Regional Council of Governments (SLOCOG), remaining HSIP grant funds administered by Caltrans, and Citywide Traffic Impact Fee (TIF) funds. This provides sufficient resources to fund construction. When the original 50 Higuera Widening Project was approved, the City Council authorized the transfer of $22,600 in General Fund (LRM) funds to the Project account from the New Streetlights CIP Account (No. 2001016), as the original scope included installation of a new streetlight. With the revised project, this streetlight will no longer be installed and these funds are no longer needed for this purpose, so staff is recommending that these funds be transferred back to the New Streetlights CIP Account. As shown in the funding tables above, there is $67,500 in HSIP grant funding remaining in the Project Account; however, only $42,450 of these funds are eligible for use in the construction phase of the project. The remaining portion of the HSIP funding is specifically tied to previous right-of-way and utility coordination phases and cannot be used towards construction. These remaining funds will ultimately go unspent—no repayment of this balance is required, these funds will simply be zeroed out when the project account is closed following construction completion. The current SLOCOG USHA funding allocated to this project is expected to exceed the amount needed to fund construction by up to $328,000. Staff is requesting Council Page 343 of 444 Item 6b authorization to transfer any remaining unspent USHA funds to the Higuera Complete Streets Project Account (No. 2001057), if needed to supplement this related high -priority CIP project. SLOCOG has already affirmed that the Higuera Complete Street Project is an eligible project for use of the USHA funding; however, a minor amendment to the existing cooperative agreement between the City and SLOCOG would be required prior to expending and seeking reimbursement for this additional funding. ALTERNATIVES Higuera Complete Streets Project 1. Council could decide not to approve the Project plans and specifications or request to advertise for construction bids at this time. The delay caused by this alternative could lead to forfeiture of more than $9 million in outside grant funding. Per the conditions of the Caltrans ATP Grant, the construction contract for this project must be awarded by the end of June 2026. As currently scoped, the Project would be infeasible to deliver without this grant funding and would need to be delayed significantly and redesigned to align project scope with reduced funding resources. 2. Council could direct staff to return prior to awarding the construction contract if construction bids exceed the amount needed to fund the base bid and bid additive alternative (concrete bike lane protection). If desired, staff could return to the City Council to award the construction contract following receipt of construction bids (if bids exceed current funding) and present recommendations to appropriate additional funds to the project account to fully fund and award the base project and bid additive alternate. In order to increase project funding, staff would likely need to identify other planned or in-progress capital projects that would need to be de- funded/deferred. 50 Higuera Widening Project 1. Council could decide not to approve the advertisement of the revised 50 Higuera Street Widening Project, directing staff to take the required steps to advance the larger road widening project, as originally envisioned. To advance the larger 50 Higuera Widening Project as originally envisioned, the project scope would need to assume that removal of several Heritage Trees would be required. This would conflict with City Policy regarding preservation of Heritage Trees and could very likely present a significant environmental impact under CEQA/NEPA. Updated environmental review would be required, which may potentially result in disclosure of significant and unavoidable impacts that cannot be feasibly avoided/mitigated. Caltrans would also need to approve removal of these trees. If removal of these trees was ultimately approved, these actions could delay the project for at least 18 to 24 months. These delays would incur additional cost escalation, and could lead to failure to deliver the HSIP-funded project on schedule, which could require repayment of approximately $400,000 in HSIP grant funding already spent to date. ATTACHMENTS Page 344 of 444 Item 6b A - Draft Resolution Authorizing Appropriation of Funds from the Infrastructure Investment Fund to the Higuera Complete Streets Project B - Summary of Higuera Complete Street Project Plans C - Higuera Complete Street Project Emergency Evacuation Study D - Higuera Complete Street Project Detailed Cost and Funding Table E - 50 Higuera Widening Project - Typical Street Cross Section Exhibit F – Draft Resolution Accepting a Future Automobile Level of Service Deficiency Page 345 of 444 Page 346 of 444 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING USE OF $2,000,000 FROM THE INFRASTRUCTURE INVESTMENT FUND TO SUPPORT THE HIGUERA COMPLETE STREETS PROJECT, SPECIFICATION NUMBER 2001057 WHEREAS, on February 17, 2026, the City Council authorized advertisement of the Higuera Complete Streets Project and delegated authority to the City Manager to award the construction contract if the lowest responsive bid was within the publicly disclosed funding limit of $12,960,700; and, WHEREAS, the project includes pavement rehabilitation, roadway restriping, addition of protected bike lanes, pedestrian accessibility and crossing improvements, and traffic safety improvements that benefit all road users, covering segments of Higuera Street, Madonna Road, and local roadways near Meadow Park; and WHEREAS, proposed improvements in the Higuera Complete Street Project support the Major City Goal of Infrastructure and Sustainable Transportation, advance several “Tier 1” (highest-priority) improvements recommended in City’s 2021 Active Transportation Plan, and support the City’s overarching Vision Zero Goal to eliminate severe injury and fatal traffic collisions; and WHEREAS, the City created in Infrastructure Investment Fund to set aside funding for future infrastructure projects that contribute to improved economic development and enhanced quality of life in the City of San Luis Obispo; and WHEREAS, the use of these funds is at the discretion of the City Council based on the guidelines established; and WHEREAS, to provide sufficient funding to proceed with the Higuera Complete Streets Project, staff is recommending the City Council approve use of $2,000,000 from the Infrastructure Investment Fund; and WHEREAS, a balance of approximately $14,658,400 is currently available in the Infrastrucure Investment Fund, which is sufficient to cover the funding requested to supplement the Higuera Complete Street Project. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Page 347 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ SECTION 1. The City Council authorizes the appropriation of $2,000,000 from the Infrastructure Investment Fund to the Higuera Complete Streets Project account 2001057. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2026. ___________________________ Mayor Erica A. Stewart ATTEST: __________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 348 of 444 ADD BICYCLE LEFT TURN BOX TO IMPROVE ACCESS & VISIBILITY FOR CYCLISTS TURNING FROM EB LOS OSOS VALLEY RD TO NB HIGUERA ST TRAFFIC SIGNAL MODIFICATIONS: - PROTECTED ONLY LEFT TURN ARROWS FOR NORTHBOUND HIGUERA APPROACH - ADD DEDICATED BIKE SIGNAL PHASE FOR SOUTHBOUND HIGUERA (SOUTHBOUND RIGHT-TURN SEPARATED WITH RED ARROW DURING BIKE SIGNAL PHASE). INCLUDE "NO RIGHT TURN ON RED" DURING BIKE SIGNAL - ADD ADA-COMPLIANT PEDESTRIAN SIGNALS GREEN BIKE LANE MARKINGS THROUGH CONFLICT AREAS FOR ADDED VISIBILITY (TYP) BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP) PROTECTED ONLY LEFT-TURN SIGNAL PHASING FOR NORTHBOUND LEFTS GENERAL NOTE: WHILE NOT SHOWN IN DETAIL IN THESE EXHIBITS, PROJECT DESIGNS INCLUDE INSTALLATION OF THE FOLLOWING FEATURES THROUGHOUT THE PROJECT LIMITS: - ADA-COMPLIANT PEDESTRIAN SIGNALS WITH AUDIBLE MESSAGING - ADA CURB RAMP UPGRADES AT 70+ LOCATIONS - ADDITION OF HI-VISIBILITY TRAFFIC SIGNAL BACKPLATES W/ YELLOW REFLECTIVE STRIPS AT ALL SIGNALIZED INTERSECTIONS WITHIN PROJECT LIMITS - EMERGENCY VEHICLE PREEMPTION TRAFFIC SIGNAL UPGRADES - PAVEMENT REPAIRS AND AND RESURFACING ALONG ALL ROADWAYS IN PROJECT LIMITS DIAGRAM OF PROPOSED SOUTHBOUND BICYCLE AND VEHICLE RIGHT TURN SIGNAL PHASING Page 349 of 444 CONTINUOUS GREEN BIKE LANES BETWEEN SUBURBAN AND TANK FARM WHERE WIDTH IS INSUFFICIENT FOR BUFFERED/PROTECTED BIKE LANES TURN BOX WITH PUSH BUTTON TO PROVIDE SIGNALIZED CROSSING OF HIGUERA FOR SOUTHBOUND LEFT-TURNING BICYCLISTS INSTALL HI-VISIBILITY CROSSWALK MARKINGS (TYP) ADA CURB RAMP UPGRADES THROUGHOUT PROJECT, WHERE NEEDED (TYP)GREEN BIKE LANE MARKINGS AT DRIVEWAY AND INTERSECTION CONFLICT AREAS (TYP) PROTECTED ONLY LEFT-TURN SIGNAL PHASING FOR NORTHBOUND LEFTS TRAFFIC SIGNAL MODIFICATIONS TO BE INSTALLED AT HIGUERA/SUBURBAN VIA SEPARATE PROJECT PRIOR TO COMPLETE STREETS CONSTRUCTION: - CONVERT SOUTHBOUND LEFT TURNS TO PROTECTED ONLY PHASING - INSTALL ILLUMINATED LED SIGN TO INCREASE VISIBILITY OF NORTHBOUND RIGHT-TURNING VEHICLES VS. BICYCLE CONFLICTS INSTALL RADAR SPEED FEEDBACK SIGN Page 350 of 444 CONTINUOUS GREEN BIKE LANES BETWEEN SUBURBAN AND TANK FARM WHERE WIDTH IS INSUFFICIENT FOR BUFFERED/PROTECTED BIKE LANES BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP) ADD FLEX POSTS AND "NO LEFT TURN" SIGNAGE TO DISCOURAGE ILLEGAL TURNS AROUND MEDIAN NEAR SILVER CITY AND THE SLO PUBLIC MARKET PU B L I C MA R K E T DR I V E W A Y SI L V E R CI T Y DR I V E W A Y Page 351 of 444 PATCH POT HOLES AND RESURFACE ROADWAY PAVEMENT THROUGHOUT PROJECT (TYP) BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP) GAPS IN BIKEWAY SEPARATION PROVIDED TO ALLOW CYCLISTS TO MERGE INTO TRAFFIC LANES FOR LEFT-TURNS AT DOWNSTREAM INTERSECTIONS AND DRIVEWAYS (TYP) Page 352 of 444 TURN BOX WITH PUSH BUTTON TO PROVIDE SIGNALIZED CROSSING OF HIGUERA FOR SOUTHBOUND LEFT-TURNING BICYCLISTS FLEX POSTS AND SIGNAGE TO DISCOURAGE ILLEGAL LEFT TURNS AROUND MEDIAN BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP) Page 353 of 444 GREEN BIKE LANE MARKINGS AT DRIVEWAY AND INTERSECTION CONFLICT AREAS (TYP) FUTURE RECONSTRUCTION OF HIGUERA/PRADO INTERSECTION PLANNED AS PART OF PRADO CREEK BRIDGE REPLACEMENT PROJECT. INTERIM IMPROVEMENTS INCLUDE HI-VISIBILITY CROSSWALKS AND GREEN BIKE LANE CONFLICT MARKINGS BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP) Page 354 of 444 INSTALL RADAR SPEED FEEDBACK SIGN GREEN BIKE LANE MARKINGS AT DRIVEWAY AND INTERSECTION CONFLICT AREAS (TYP) INSTALL HI-VISIBILITY CROSSWALK MARKINGS (TYP) HIGUERA ST. RECONFIGURED TO THREE LANES (ONE LANE EACH DIRECTION + CENTER TURN LANE) BETWEEN MARGARITA AND BRIDGE ST. Page 355 of 444 REFRESH RED CURB PAINT AND SIGNAGE TO ENFORCE "NO PARKING" RESTRICTIONS WITHIN CHUMASH DRIVE SIGHT TRIANGLE BETWEEN MARGARITA AND BRIDGE STREET, BASE BID INCLUDES FLEX POSTS ONLY FOR BIKEWAY SEPARATION. BID ADDITIVE INCLUDES PRE-CAST, REMOVABLE CONCRETE CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED BIKEWAY SEPARATION WHERE SHOWN BIKEWAY MEDIANS PULLED BACK MINIMUM 20' FROM ALL DRIVEWAYS (TYP) INSTALL HI-VISIBILITY CROSSWALK MARKINGS (TYP) EXTRA WIDE CENTER TURN LANE PROVIDED TO SERVE AS EMERGENCY BYPASS LANE FOR EMERGENCY VEHICLES WIDEN PAVEMENT AND CONSTRUCT TEMPORARY DRAINAGE GUTTER -- REMAINING WIDENING AND SIDEWALK GAP CLOSURE IN FUTURE (PENDING RIGHT-OF-WAY ACQUISITION) Page 356 of 444 BETWEEN MARGARITA AND BRIDGE STREET, BASE BID INCLUDES FLEX POSTS ONLY FOR BIKEWAY SEPARATION. BID ADDITIVE INCLUDES PRE-CAST, REMOVABLE CONCRETE CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED BIKEWAY SEPARATION WHERE SHOWN Page 357 of 444 INSTALL RADAR SPEED FEEDBACK SIGN INSTALL NEW TRAFFIC SIGNAL AT HIGUERA/ELKS INTERSECTION PUSH BUTTONS PROVIDED TO ALLOW BICYCLES AND PEDESTRIANS TO ACTUATE TRAFFIC SIGNAL TO CROSS HIGUERA ST. HIGUERA ST. RECONFIGURED TO THREE LANES (ONE LANE EACH DIRECTION + CENTER TURN LANE) BETWEEN MARGARITA AND BRIDGE ST. BETWEEN MARGARITA AND BRIDGE STREET, BASE BID INCLUDES FLEX POSTS ONLY FOR BIKEWAY SEPARATION. BID ADDITIVE INCLUDES PRE-CAST, REMOVABLE CONCRETE CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED BIKEWAY SEPARATION WHERE SHOWN Page 358 of 444 CENTER TURN LANE ADDED TO IMPROVE ACCESS TO/FROM BRIDGE ST. NORTHBOUND APPROACH RESTRIPED AT HIGUERA/MADONNA TO PROVIDE DUAL LEFT-TURN LANES, WHICH IMPROVES EXISTING AND FUTURE TRAFFIC OPERATIONS RECONSTRUCT NORTHWEST CORNER OF HIGUERA/MADONNA INTERSECTION TO IMPROVE BICYCLE AND PEDESTRIAN CROSSIGN EXPOSURE AND SAFETY. PROVIDE OPPORTUNITY FOR FUTURE SHARED-USE PED/BIKE PATH CONNECTION NORTH TO MADONNA RD PATH TRAFFIC SIGNAL MODIFICATION PROVIDES DEDICATED SOUTHBOUND VEHICLE RIGHT-TURN PHASE AND SEPARATE SOUTHBOUND BIKE SIGNAL PHASE TO REDUCE CONFLICTS WITH TURNING VEHICLES. TWO-STAGE BICYCLE LEFT TURN BOX FACILITATES NORTHBOUND LEFT-TURN MOVEMENTS FOR BICYCLISTS TOWARDS WESTBOUND MADONNA RD SOUTHBOUND LEFT-TURNS RESTRICTED, RE-DIRECTED TO BRIDGE ST AREA FOR FUTURE TREES HIGUERA ST. RECONFIGURED TO THREE LANES (ONE LANE EACH DIRECTION + CENTER TURN LANE) BETWEEN MARGARITA AND BRIDGE ST. DIAGRAM OF PROPOSED SOUTHBOUND BICYCLE AND VEHICLE RIGHT TURN SIGNAL PHASING Page 359 of 444 TWO-STAGE BICYCLE LEFT TURN BOX (TYP) PROTECTED BIKE LANE WITH FLEX POSTS FOR VERTICAL SEPARATION, (TYP) INSTALL HI-VISIBILITY CROSSWALK MARKINGS (TYP) Page 360 of 444 PROTECTED BIKE LANE WITH FLEX POSTS FOR VERTICAL SEPARATION, (TYP) CLOSURE OF WALKER STREET AT HIGUERA, AS PROPOSED IN MID-HIGUERA ENHANCEMENT PLAN. STREET CLOSURE WITH REMOVABLE BOLLARDS AND DECORATIVE PAVEMENT TREATMENT IMPROVES COMFORT FOR PEDESTRIANS AND AESTHETICS WHILE RETAINING EMERGENCY VEHICLE ACCESS INSTALL HI-VISIBILITY CROSSWALK MARKINGS (TYP) NEW CROSSWALK WITH RECTANGULAR RAPID FLASHIGN BEACONS (RRFB) Page 361 of 444 Page 362 of 444 CONTINUOUS GREEN BIKEWAY MARKINGS FOR ADDED VISIBILITY ALONG MADONNA RD OVERCROSSING WHERE NARROW STREET WIDTH PRECLUDES PHYSICAL BIKEWAY SEPARATION PER CALTRANS DESIGN STANDARDS. HI-VIS CROSSWALKS AND GREEN BIKE LANE MARKINGS THROUGH INTERSECTION AND DRIVEWAY CONFLICT AREAS Page 363 of 444 HI-VIS CROSSWALKS AND GREEN BIKE LANE MARKINGS THROUGH INTERSECTION AND DRIVEWAY CONFLICT AREAS PROTECTED BIKE LANE WITH FLEX POSTS FOR VERTICAL SEPARATION WHERE WIDTH ALLOWS OUTSIDE OF CALTRANS R/W, (TYP) Page 364 of 444 PROTECTED BIKE LANE WITH FLEX POSTS FOR VERTICAL SEPARATION WHERE WIDTH ALLOWS OUTSIDE OF CALTRANS R/W, (TYP) Page 365 of 444 NEIGHBORHOOD GREENWAY MARKINGS AND GUIDE SIGNAGE ALONG THE MEADOW PARK GREENWAY FOLLOWING BRIDGE ST, EXPOSITION, CORRIDA, AND WOODBRIDGE STREETS Page 366 of 444 NEIGHBORHOOD GREENWAY MARKINGS AND GUIDE SIGNAGE ALONG THE MEADOW PARK GREENWAY FOLLOWING BRIDGE ST, EXPOSITION, CORRIDA, AND WOODBRIDGE STREETS RAISED CROSSWALK WITH NEW LIGHTING TO IMPROVE CONNECTIVITY BETWEEN MEADOW PARK, HIGUERA STREET AND OTHER BIKE/PED CONNECTIONS SOUTH OF DOWNTOWN Page 367 of 444 ADD RED CURB TO "DAYLIGHT" ACCESS POINT TO MEADOW PARK SHARED-USE PATH NETWORK. ADD WAYFINDING SIGNAGE TO GUIDE ROUTE BETWEEN BRIDGE STREET PATH, MEADOW PARK SHARED-USE PATHS AND OTHER BIKEWAYS IN THE AREA INSTALL SPEED HUMPS ALONG GREENWAY ROUTE WHERE EXISTING VEHICLE SPEEDS > 25 MPH (TYP) STRIPED BULBOUTS WITH FLEX POSTS TO REDUCE TURNING SPEEDS AT KEY INTERSECTIONS ALONG GREENWAY ROUTE (TYP) Page 368 of 444 RAMP FOR BIKE ACCESS TO/FROM MEADOW PARK NEIGHBORHOOD GREENWAY MARKINGS AND GUIDE SIGNAGE ALONG THE MEADOW PARK GREENWAY FOLLOWING BRIDGE ST, EXPOSITION, CORRIDA, AND WOODBRIDGE STREETS Page 369 of 444 RAMP FOR BIKE ACCESS TO/FROM MEADOW PARK STRIPED BULBOUTS WITH FLEX POSTS TO REDUCE TURNING SPEEDS AT KEY INTERSECTIONS ALONG GREENWAY ROUTE (TYP) ADD ALL-WAY STOP AT MEADOW/WOODBRIDGE TO IMPROVE PEDESTRIAN CROSSINGS TO/FROM MEADOW PARK AND ALONG GREENWAY ROUTEINSTALL SPEED HUMPS ALONG GREENWAY ROUTE WHERE EXISTING VEHICLE SPEEDS > 25 MPH (TYP) Page 370 of 444 INSTALL SPEED HUMPS ALONG GREENWAY ROUTE WHERE EXISTING VEHICLE SPEEDS > 25 MPH (TYP) CONNECT TO EXISTING PEDESTRIAN HYBRID BEACON CROSSING AT BROAD & WOODBRIDGE Page 371 of 444 INSTALL SPEED HUMPS ALONG GREENWAY ROUTE WHERE EXISTING VEHICLE SPEEDS > 25 MPH (TYP) NEIGHBORHOOD GREENWAY MARKINGS AND GUIDE SIGNAGE ALONG KING COURT TO CONNECT WITH MEADOW PARK SHARED-USE PATHS AND GREENWAY NETWORK NEW PEDESTRIAN HYBRID BEACON CROSSING AT SOUTH & KING TO BEGIN CONSTRUCTION 2026 Page 372 of 444 Higuera Street Emergency Evacuation Analysis Prepared by: San Luis Obispo Community Fire Safe Council Date: January 18, 2026 City of San Luis Obispo Executive Summary This report evaluates emergency evacuation conditions along the Higuera Street corridor and assesses the potential effects of the proposed Higuera Complete Street Project on evacuation performance. The analysis focuses on evacuation clearance time, route efficiency, and operational constraints under both fire and flood emergency scenarios. Two evacuation zones, SLO-024 and SLO-025, were analyzed using conservative assumptions reflecting maximum allowable development and worst-case evacuation demand. 1. Purpose and Scope The purpose of this study is to evaluate emergency evacuation conditions along the Higuera Street corridor and to assess changes in evacuation clearance time, route efficiency, and operational performance associated with implementation of the Higuera Complete Street Project. The analysis is intended to support emergency planning, transportation design review, and environmental documentation. Page 373 of 444 2. Emergency Scenarios Evaluated Two emergency scenarios were evaluated independently based on known hazards affecting the Higuera corridor. Scenarios are not assumed to occur at the same time Scenario A – Fire or Flooding in San Luis Obispo Creek (Evacuation Zone SLO-024) This scenario models either a fire or flooding event affecting creek-adjacent neighborhoods west of Higuera Street. Zone SLO-024 contains mobile home parks, multifamily areas, and commercial parcels located close to the creek corridor, where hazards can develop quickly and restrict access. Flooding may limit creek crossings, reduce roadway capacity, or obstruct access routes. Fire conditions along the creek corridor can also generate rapid evacuation needs. This zone relies heavily on Higuera Street as its primary evacuation pathway, making it sensitive to congestion and roadway constraints. Scenario B – Wildfire in South Hills Open Space (Evacuation Zone SLO-025) This scenario evaluates a South Hills wildfire requiring evacuation of the Margarita Area and surrounding neighborhoods. Zone SLO-025 covers a larger geographic area with both built and entitled parcels under current land-use designations. Evacuation performance is influenced by total population loading, merging onto arterial routes, and traveling distance to safe areas. Compared with Zone SLO-024, the zone has more route options but a larger number of households, requiring careful modeling of demand and travel time. 3. Data Sources and Key Assumptions The analysis uses conservative assumptions to reflect worst-case evacuation conditions and maximum possible population. 3.1 Roadway Network Data County roadway centerline and functional classification data were used as the base transportation network. These were modified to incorporate the proposed Higuera Complete Street Project, including: • Reduction to one vehicle lane in each direction (Bridge St. → Margarita Ave.) • Addition of a continuous center turn lane • Reduced operating speeds (−5 mph corridor-wide) to represent traffic-calming features 3.2 Address, Land Use, and Population Data Residential address data were sourced from City of San Luis Obispo land-use and zoning datasets. Evacuation demand reflects the maximum population allowed under existing zones, regardless of whether all units are currently developed. This ensures modeling accounts for full build-out conditions and long-term emergency planning needs. Page 374 of 444 3.3 Vehicle Assumptions A standard assumption of two vehicles per address was applied to all residential units. This is consistent with regional household vehicle ownership and provides a conservative planning-level estimate of evacuation demand. 3.4 Mobile Home Parks Mobile home parks with a single parcel address require manual population estimation. Each park’s total number of dwelling units was counted using satellite imagery to identify individual mobile homes, ensuring accurate representation of evacuation demand in higher-density communities. 3.5 LADRIS Evacuation Modeling Tool LADRIS (Life and Death Response Information System) served as the modeling platform for this analysis. LADRIS simulates evacuation behavior by loading population and vehicle demand onto the roadway network using GIS data, route assignment logic, and congestion modeling. It is a planning-level tool designed to compare evacuation performance across scenarios, not a detailed traffic engineering simulator. LADRIS does not fully account for traffic signal operations, stop controls, officer-directed traffic, contraflow, or special evacuation signal timing plans. Therefore, results represent planning-level estimates intended to guide emergency preparedness, roadway design decisions, and policy, not precise real-time operational forecasts. 4. Transportation Network Conditions Existing roadway lane configurations, intersection geometry, traffic control, and prevailing operating speeds were assumed for baseline conditions. The primary evacuation routes for this area are southbound Higuera Street toward Los Osos Valley Road, northbound Higuera Street toward Madonna Road, eastbound on Tank Farm Road, and eastbound on Prado Road toward northbound Highway 101. This analysis also assumes that Prado Road to Highway 101 will be closed during the flooding scenario. The Complete Street Project configuration reflects reduced vehicle lanes between Bridge Street and Margarita Avenue, the addition of a continuous center turn lane, and an assumed five-mile-per-hour reduction in operating speeds along the Higuera Street corridor due to proposed traffic-calming and complete street design features such as speed feedback signs, protected bike lanes, and reduced traffic lane widths. Page 375 of 444 5. Evacuation Clearance Time Results Evacuation clearance time represents the total time required for all vehicles within an evacuation zone to reach a designated safe area under emergency conditions. 5.1 Evacuation Zone SLO-024 Creekside / West of Higuera – Fire and Flood Scenarios • Total residences to be evacuated: 349 • Total evacuating vehicles: 6,932 Fire Scenario A: Existing Conditions – Total Evacuation Time: 1 hour 40 minutes Fire Scenario A: Complete Street Project – Total Evacuation Time: 1 hour 54 minutes Page 376 of 444 5.1 Evacuation Zone SLO-024 Flood Scenario A: Existing Conditions – Total Evacuation Time: 1 hour 47 minutes Flood Scenario A: Complete Street Project – Total Evacuation Time: 1 hour 57 minutes Note: Fire and Flood scenarios use identical demand assumptions. Results differ due to network constraints, the closure of Prado Rd due to flood history, and routing conditions specific to each scenario. Page 377 of 444 5.2 Evacuation Zone SLO-025 South Hills / Margarita Area – Fire and Flood Scenarios • Total addresses to be evacuated: 871 • Total evacuating vehicles: 4,740 Fire Scenario B: Existing Conditions – Total Evacuation Time: 1 hour 35 minutes Fire Scenario B: Complete Street Project – Total Evacuation Time: 1 hour 43 minutes Page 378 of 444 6. Summary of Evacuation Clearance Times Evacuation Zone Emergency Type Roadway Condition Clearance Time SLO-024 Fire Existing 1 hr 40 min SLO-024 Fire Complete Street 1 hr 54 min SLO-024 Flood Existing 1 hr 47 min SLO-024 Flood Complete Street 1 hr 57 min SLO-025 Fire Existing 1 hr 35 min SLO-025 Fire Complete Street 1 hr 43 min SLO-025 Flood Existing 1 hr 49 min SLO-025 Flood Complete Street 1 hr 51 min 7. Conclusions and Key Findings The analysis indicates that the Higuera Complete Street Project would result in increases in evacuation clearance times for both fire and flood scenarios within Evacuation Zones SLO-024 and SLO-025. These changes are primarily associated with reduced vehicular capacity and lower operating speeds consistent with the project’s safety and traffic-calming objectives. Importantly, the modeled evacuation clearance times remain within the City’s two-hour performance benchmark used in recent evacuation and emergency planning evaluations. With early evacuation activation, coordinated traffic management, pre-programmed evacuation signal timing, and effective public communication, the transportation network is expected to continue to function acceptably under emergency conditions. End Page 379 of 444 Page 380 of 444 Water Valve Cover Adjustments (2001005) Sewer Valve Cover Adjustments (2000084) Traffic Signal Maintenance & Replacements (2001003) Vision Zero Implementation (2000073) Prado Creek Bridge (2091252) State Grant ( ATP) State Grant (SLOCOG) General Fund LRM General Fund General Fund LRM Water Fund Sewer Fund General Fund LRM General Fund LRM General Fund LRM Base Bid Construction Estimate $6,951,000 $2,501,910 $2,432,221 $0 $75,000 $25,000 $50,000 $100,000 $500,000 $12,635,131 Construction Contingency $630,339 $88,650 $116,197 $45,000 $25,000 $390,950 $1,296,136 Construction Management $1,000,000 $1,000,000 Materials Testing $150,000 $150,000 Printing & Advertising $1,000 $1,000 Public Relations $100,000 $100,000 Base Bid Total Estimate $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $1,641,950 $15,182,267 Add Alt A Construction Estimate $325,500 $325,500 Add Alt A Contingency $32,550 $32,550 Additive Alternative A Total Estimate $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $358,050 $358,050 Total Construction (Base + Add Alt A) $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $15,540,317 Current Project Account Balance $6,951,000 $2,501,910 $3,062,560 $12,515,470 Additional Funding Request:$88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $3,024,847 TOTAL PROJECT BUDGET $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $15,540,317 Detaled Project Costs and Funding Summary Higuera Complete Street Project (No. 2001057) Higuera Complete Street (2001057)ATP Implementation (2000608)Infrastucture Investment Fund Total Costs Page 381 of 444 Page 382 of 444 S o u t h H i g u e r a Caltrans Offices 50 S . H i g u e r a 43 S. H i g u e r a 51 S. H i g u e r a Original Road Widening Extents – Approx. 6450 Sq Ft Caltrans Driveway 50 S . H i g u e r a Cross Section Identified Heritage Tree Reduced Road Widening Extents – Approx. 1755 Sq Ft Existing Heritage Trees Conflicting with Road Widening ATTACHMENT E: 50 Higuera Widening Typical Street Sections Page 383 of 444 Si d e w a l k – 7’ Bi k e L a n e – 5’ Ve h i c l e L a n e – 10 . 5 ’ Ve h i c l e L a n e - 10. 5 ’ Ve h i c l e L a n e - 10. 5 ’ Ve h i c l e L a n e - 10. 5 ’ Bi k e L a n e – 5’ Si d e w a l k – 6’ Si d e w a l k – 7’ Bi k e L a n e – 5’ Ve h i c l e L a n e – 10 ’ Ve h i c l e L a n e - 10’ Ce n t e r T u r n La n e – 11 . 5’ Ve h i c l e L a n e - 10’ Bi k e L a n e – 5’ Si d e w a l k – 6’ Ve h i c l e L a n e - 10.5 ’ Page 384 of 444 Si d e w a l k – 7’ Bi k e L a n e – 5’ Ve h i c l e L a n e – 10 . 5 ’ Ve h i c l e L a n e - 10. 5 ’ Ce nt er T u r n La n e - 10. 5 ’ Ve h i c l e L a n e - 10. 5 ’ Bi k e L a n e – 5’ Si d e w a l k – 6’ Bu f f e r – 3’ Si d e w a l k – 7’ Bu f f e r – 3’ Ve h i c l e L a n e - 10. 5 ’ Ce nt er T u r n La n e - 13 ’ Ve h i c l e L a n e - 10. 5 ’ Bi k e L a n e – 6’ Si d e w a l k – 6’ Bi k e L a n e – 6’ Page 385 of 444 Page 386 of 444 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING A FUTURE AUTOMOBILE LEVEL OF SERVICE DEFICIENCY AT THE INTERSECTION OF HIGUERA STREET AND LOS OSOS VALLEY ROAD IN CONNECTION WITH THE HIGUERA COMPLETE STREETS PROJECT, SPECIFICATION NUMBER 2001057 WHEREAS, the City of San Luis Obispo General Plan Circulation Element establishes a minimum automobile Level of Service (LOS) standard of LOS D or better for locations outside of the downtown; and, WHEREAS, the traffic operations analysis prepared for the Higuera Complete Street Project indicates that the intersection of Higuera Street and Los Osos Valley Road is projected to operate at deficient LOS E during the PM peak hour in the future near-term (5-year) and cumulative (20-year) horizon conditions; and, WHEREAS, the Higuera Complete Street Project includes traffic signal modifications that include converting the northbound left-turn movement to “protected only left-turn phasing” and adding a dedicated southbound bicycle signal phase at this intersection, which are best practice safety countermeasures intended to reduce potential for intersection crashes; and, WHEREAS, the proposed traffic signal modifications are projected to increase the average PM peak hour delay at this intersection by approximately six seconds per vehicle, further exacerbating conditions at this intersection, which is already projected to operate at deficient LOS E in the future; and, WHEREAS, acceptance of this LOS deficiency supports the City’s General Plan mode share targets, Vision Zero commitment to eliminate fatal and severe injury crashes, Infrastructure & Sustainable Transportation Major City Goal, and Climate Action Plan objectives to increase use of sustainable transportation modes; and, WHEREAS, the City Council finds that the safety, sustainability, and multimodal circulation benefits of the proposed intersection improvements outweigh the incremental increase in automobile delay at this location. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Page 387 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ SECTION 1. The City Council hereby accepts the projected automobile Level of Service E condition during the PM peak hour at the intersection of Higuera Street and Los Osos Valley Road under future conditions. SECTION 2. The City Council affirms acceptance of the incremental increase in vehicle delay to be added to the intersection of Higuera Street and Los Osos Valley Road with the Higuera Complete Street Project, finding the project and its related benefits to be consistent with the General Plan as a whole. SECTION 3. The City Council finds that this action does not amend the City’s adopted Level of Service standard, which shall remain in effect unless modified by future City Council action. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2026. ___________________________ Mayor Erica A. Stewart ATTEST: __________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 388 of 444 Item 6c Department: Administration Cost Center: 1005 For Agenda of: 2/17/2026 Placement: Public Hearing Estimated Time: 30 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: GRANT AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART RECOMMENDATION Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo finding that a Grant Agreement with the San Luis Obispo Museum of Art is of public benefit in accordance with California Government Code Section 53083 and approving the Grant Agreement” (Attachment A) to: 1. Find that a Grant Agreement serves the public interest of the City of San Luis Obispo by advancing arts and culture, economic development, and other public benefits; and 2. Approve the Grant Agreement between the City of San Luis Obispo and the San Luis Obispo Museum of Art and authorize the City Manager to execute the agreement in a final form satisfactory to the City Attorney. REPORT-IN-BRIEF The San Luis Obispo Musuem of Art (SLOMA) has put forward a Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (the “Proposal”) that was submitted to City Council on October 30, 2025 (Attachment B). The Proposal entails an expansion of the existing museum by bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. SLOMA’s proposed plans are consistent with numerous City plans and policies and are also anticipated to have significant economic impact benefits. In consideration of SLOMA’s proposed project’s ability to advance City plans and policy objectives, on November 4, 2025, as part of its review of the unaudited year-end 2024- 25 fiscal year budget, the City Council directed staff to prepare a draft Grant Agreement in the amount of $500,000 to support the first phase of SLOMA’s pro ject to activate the museum expansion. The draft Grant Agreement contains terms and conditions that need to occur before the City will disburse funds, outlines eligible uses of funds and how they will be administered, ensures project reporting and financial assurance, and contemplates Page 389 of 444 Item 6c an amendment in the future that the City Council may consider for additional grant funding to support the eventual acquisition of the expansion properties. POLICY CONTEXT SLOMA’s proposal has significant alignment with numerous City of San Luis Obispo plans and policies. These include the City’s existing Major City Goals, Economic Development Strategic Plan, Downtown Concept Plan, and General Plan Land Use Element policies, such as: 1. 2025-27 Financial Plan Major City Goals a. Cultural Vitality, Economic Resilience, and Fiscal Sustainability i. Goal 2 (“Support the arts, including the Cultural Arts District”) 2. Economic Development Strategic Plan (2023), Placemaking & Promotion a. 2.1 Quality-of-Place Promotion (“Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest.”) b. 2.2 Welcoming Environment (“Create an inclusive and friendly environment for residents, workers, and visitors.”) i. 2.2.2 (“Highlight the diverse culture, history, assets, and amenities of the City to help foster a sense of inclusion.”) c. 2.3 Downtown Vitality (“Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses”) i. 2.3.5 (“Support opportunities to speed the implementation of the Downtown Concept Plan.”) d. 2.4 Cultural Vitality (“Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City”) i. 2.4.3 (“Investigate the alignment of artistic and cultural initiatives across the City.”) ii. 2.4.6 (“Continue to work with community partners to ensure the vitality of the City.”) 3. San Luis Obispo Downtown Concept Plan (2017) a. Strong Identity (“Foster an economically and cultural diverse downtown…”) b. Art, Culture, and History ("Expand cultural, historical, and artistic opportunities ... ") 4. Land Use Element of the General Plan (2014) a. Policy 4.1 ("Downtown is the community's urban center serving as the cultural, social, entertainment, and political center of the City... The City wants its urban core to be economically healthy and realizes that private and public investments in the Downtown support each other") b. Policy 4.3 ("Cultural facilities, such as museums and galleries should be Downtown.”) In addition, the City is required to complete Economic Development Subsidy findings, as required by California Government Code Section 53083, when making a grant in an Page 390 of 444 Item 6c amount of $100,000 or more for the purpose of stimulating economic development within its jurisdiction. DISCUSSION Background The City of San Luis Obispo enjoys a long-standing public / private partnership with SLOMA that stretches back over 60 years, including through the lease of City property at the location of the existing museum at 1010 Broad Street tangent to Mission Plaza in 1967. This relationship has supported a wide variety of activities and initiatives during th is time in support of the visual arts, including the establishment of a formal Community Partnership Agreement with SLOMA beginning in 2021 in furtherance of the City's Public Art Program. Over the past five years, SLOMA has built a strong staff and Board of Directors, increased museum offerings and patrons of the museum, and re-invigorated its long-standing goal of assembling a contemporary museum space of sufficient size and building characteristics to meet its growing needs. A study commissioned by SLOMA to help them better understand their space and building needs was prepared by the firm Lord Cultural Resources (2024), which identified that demand exists for increased museum offerings, and that a sufficiently sized new museum could attract over 100,000 visitors per year. Importantly, this study also led SLOMA to conclude that construction of a new museum at the existing location that would meet this need is cost prohibitive , with an expected construction cost of over $54 million. Staff have thoroughly reviewed the study and concur with the methodology and analysis that form the findings and recommendations ; the Executive Summary is provided as Attachment C. SLOMA's Proposal for Supporting the Future San Luis Obispo Museum of Art : A New Home in the Heart of Downtown describes the first phase of SLOMA's plans to expand from the 1010 Broad Street location by bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. The three properties together would form a 24,000 -square-foot museum facility with multiple galleries, a museum cafe and store, a blend of indoor and outdoor space, a nd downstairs offices supportive of SLOMA's operations and storage needs. The 1010 Broad Street property would be used for expanded arts educations programming, which is consistent with the existing lease agreement with the City. The second phase of the Proposal entails the eventual purchase of the three expansion properties on Higuera Street. The proposed project represents another key Downtown investment, in addition to the Cultural Arts District Parking Structure, the new San Luis Obispo Repertory Theatre, and the Mission Plaza Enhancement Project, that will help to ensure Downtown vibrancy into the future. Key Terms of the Grant Agreement Staff and SLOMA, together with respective legal counsel, have prepared a draft Grant Agreement (Attachment D) for an amount up to $500,000 that includes the following key terms, in accordance with prior Council direction: Page 391 of 444 Item 6c 1. The Grant Agreement is for a three-year term for Phase 1 implementation. 2. The City’s funds are a one-time grant of up to $500,000, paid on a reimbursement basis, to be used for eligible soft costs only. 3. SLOMA shall secure all other project funds for Phase 1, all necessary project entitlements and building permits, and shall submit to the City a fundraising plan and three-year budget forecast demonstrating project feasibility. 4. SLOMA shall identify additional public benefits, such as public art in the creek walk area, or similar, that can reasonably be implemented or facilitated. 5. The Grant Agreement requires public recognition of the City as a funding source and project partner. 6. SLOMA shall submit quarterly reporting and financial assurance documentation. 7. The Amendment paragraph specifies the conditions under which potential Phase 2 funding may be considered, per SLOMA’s Proposal. These items include satisfactorily completing all required elements of Grant Agreement during implementation of Phase 1, submitting a detailed project description and supportive justification for the additional funding request, and submitting sufficient due diligence items for the City’s review to ensure expenditure of its funds is supported and documented. 8. The Grant Agreement includes standard terms and conditions including Conflict of Interest, Indemnification, and Termination. Current Project Updates Since first introducing the Proposal to City Council on November 4, 2025, SLOMA has entered into a lease agreement with the current property owner and has taken possession of all three Higuera Street storefronts as of February 1, 2026. SLOMA has also continued to refine its project and has applied for permits and planning entitlements for the first phases of the project that are currently under review with the Community Development Department and the inter-departmental Design Review Team. Some aspects of the project can move forward as tenant improvements, while others will require that SLOMA assemble technical reports, including arborist, biological and cultural resources studies and other information needed for project elements that are discretionary and will require environmental review. Economic Impact Analysis As an attachment to its Proposal to the City, SLOMA also included data and modeling from the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), which estimates that the operation of SLOMA’s new museum space will result in $123,500 in local government revenue and will generate $4,926,203 million in total expenditures on an annual basis. It is also anticipated that the implementation of SLOMA’s Proposal and the operation of the new, expanded museum will generate 93 jobs a ccording to data and modeling provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024). Employment data contained in this report is based on the Page 392 of 444 Item 6c underlying IMPLAN Economic Model and is an annual average headcount of full time, part time, and seasonal employment using the same definitions as the U.S.A. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages. SLOMA may be subject to possessory interest property tax during Phase 1 of the project; however, as the tenant improvements for the new museum space are not yet constructed, it is not yet known what the assessment and taxing rate will be. As a 501(c)(3) non-profit organization, if SLOMA acquires the expansion properties in the future, SLOMA may be eligible for a partial exemption of property taxes through the County Tax Assessor and the State Board of Equalization, provided that SLOMA continues to operate the property exclusively for exempt uses on an annual filing basis. An investment by the City in SLOMA’s new museum space is fiscally prudent as it will contribute to a project that is anticipated to generate 93 jobs, $123,500 in revenue to the City and over $4.9 million in expenditures, on an annual basis. From a project due diligence perspective, SLOMA is required to submit a fundraising plan and three -year forecasted operating budget for approval by the City prior to disbursement of funding, per the draft Grant Agreement. These data and analyses form the basis of the Economic Development Subsidy findings that are required under California Government Code Section 53083, The City is required to provide specified information in written form available to the public, through its website, for any economic development subsidy within its jurisdiction and to provide public notice and a hearing regarding the subsidy. An “economic development subsidy” is defined in relevant part under the Government Code as “any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to . . . grants . . .” (Cal. Gov. Code § 53083(g)(1)). The draft Grant Agreement entails a commitment of $500,000 in grant funding towards SLOMA’s new museum space due to the long-standing community partnership with SLOMA and the anticipated economic d evelopment and other public benefits the new museum will provide. As such, the Grant Agreement constitutes an “economic development subsidy”. The required Economic Development Subsidy findings and disclosure are found in the draft Resolution included as Attachment A. Previous Council Action On November 4, 2025, as part of its review of the unaudited year-end 2024-25 fiscal year budget, the City Council directed staff to prepare the draft Grant Agreement that is recommended for approval with this Council Agenda Report. Council also directed staff to “include terms [in the Grant Agreement] which would commit the City to providing funding of some kind toward Phase 2 of the project, subject to further analysis and discussion at a public meeting and with funding allocations determined during future budget actions.” (Council Minutes for November 4, 2025, approved November 18, 2025). Page 393 of 444 Item 6c In addition, SLOMA also reports that they have successfully completed the “Challenge Grant” that raised over $2 million following City Council’s first conversation and direction to staff regarding their Proposal that occurred on November 4, 2025. Public Engagement Council considered public comments from numerous residents and community members that spoke favorably about SLOMA’s Proposal at the November 4, 2025, City Council meeting. Any member of the public may provide comments, testimony, or written comments to the City Council about this item. In addition, because this item requires a public hearing (due to the Economic Development Subsidy requirements under California Government Code section 53083 described above), it has been noticed in the public - facing kiosk in front of City Hall and on the City’s website. SLOMA has also been engaging with the public, including news releases and social media, installation of colorful information signs in the windows of the Higuera Street storefronts, and sharing details with local businesses and service groups including a presentation to the Downtown SLO Board of Directors in November, 2025, and at the San Luis Obispo Chamber of Commerce’s “Good Morning SLO” event that took place in January, 2026. Next Steps Should Council approve the draft Grant Agreement, staff will conti nue to work closely with SLOMA and will establish a regular meeting cadence to maintain timely communication, support project delivery, and ensure proper oversight of grant funds and reporting requirements. If SLOMA is able to complete property negotiatio ns and fundraising plans towards the eventual purchase of the buildings and timely complete the conditions precedent to be ing considered for Phase 2 funding, staff will provide options and recommendations regarding additional funding at the next regularly scheduled budget hearing, per prior Council direction on November 4, 2025. This will allow an additional funding request to be considered in the context of the City’s overall budget , with the next appropriate opportunity taking place on June 2, 2026, when the Council will consider the Fiscal Year 2026-2027 Budget Supplement. CONCURRENCE On January 14, 2026, the SLOMA Board of Directors took action to approve the draft Grant Agreement. The Community Development Department and the Economic Development and Tourism Program concur with the recommendation in furtherance of General Plan and Economic Development Strategic Plan implementation, respectively. The City Attorney’s Office has reviewed and provided its concurrence as to the form of the draft Grant Agreement and draft Resolution. Page 394 of 444 Item 6c ENVIRONMENTAL REVIEW Entering into a Grant Agreement is not considered a project under California Environmental Quality Act (CEQA) Guidelines Section 15378. The future implementation of some elements of SLOMA’s project, however, will be subject to environmental review and a CEQA determination, which will take place concurrent with the City’s evaluation of the SLOMA’s building permit and planning entitlement applications. FISCAL IMPACT Budgeted: No Budget Year: 2024-25 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund (FY 2024-25 Unassigned Fund Balance) $3,468,954 $500,000 $2,968,954* N/A State Federal Fees Other: Total $3,468,954 $500,000 $2,968,954 N/A * The $2,968,954 of ‘remaining balance’ noted above represents the balance of FY 2024 - 25 Unassigned Fund Balance after the $500,000 contribution toward SLOMA is considered. At the time that this item will be heard, it will follow Council’s consideration of allocations of the Unassigned Fund Balance as part of approval of the recommendations in the Second Quarter Budget Report item heard earlier on the February 17, 2026, agenda. The audited, unassigned fund balance for the General Fund for FY 2024-25 is $3,468,954. Consistent with Council’s direction of November 4, 2025, staff is recommending allocation of $500,000 from FY 2024-25 unassigned fund balance for this purpose as part of the Second Quarter Budget Report that will be presented to Council prior to consideration of this item. Modest staff time will be needed to ensure oversight of the terms and conditions of the Grant Agreement and to support project delivery and the overall partnership with SLOMA. ALTERNATIVES 1. Council may direct modifications to the draft Grant Agreement to incorporate different terms or requirements. Page 395 of 444 Item 6c 2. Council could direct staff to make modifications to the draft Grant Agreement and bring it back as an item for future reconsideration. Should Council choose this alternative, it is recommended that a “date certain” be identified, so that SLOMA may reliably anticipate future project actions and scheduling. 3. Council may elect not to approve the draft Grant Agreement in favor of other budget needs and priorities. If this alternative is chosen, it should be noted that the City Council’s direction on November 4, 2025, assisted in meeting a challenge grant offered by community members to help SLOMA raise $2 million that could be jeopardized. ATTACHMENTS A - Draft Resolution B - Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown. San Luis Obispo Museum of Art (2025). C - San Luis Obispo Museum of Art (SLOMA), New Building Facilities and Operations Focused Feasibility Study. Executive Summary. Lord Cultural Resources (2024). D - Draft Grant Agreement Page 396 of 444 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, FINDING THAT A GRANT AGREEMENT WITH THE SAN LUIS OBISPO MUSEUM OF ART IS OF PUBLIC BENEFIT IN ACCORANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 53083 AND APPROVING THE GRANT AGREEMENT WHEREAS, The City of San Luis Obispo (City) enjoys a long-standing public / private partnership with the San Luis Obispo Museum of Art (SLOMA) that stretches back over 60 years, including through the lease of City property at the location of the existing museum at 1010 Broad Street tangent to Mission Plaza in 1967. This relationship has supported a wide variety of activities and initiatives during this time in support of the visual arts, including the establishment of a formal Community Partnership Agreement with SLOMA beginning in 2021 in furtherance of the City's Public Art Program; and WHEREAS, SLOMA has put forward a Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (the “Proposal”) submitted to City Council on October 30, 2025, that has significant alignment with numerous City plans and policies. These include the City’s existing 2025-27 Major City Goals, Economic Development Strategic Plan (2023), Downtown Concept Plan (2017), and General Plan Land Use Element (2014); and WHEREAS, SLOMA's Proposal describes plans to expand from its present location at 1010 Broad Street by also bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. The three properties together would form a 24,000 -square-foot museum facility with multiple galleries, a museum cafe and store, a blend of indoor and outdoor space, and downstairs offices supportive of SLOMA's operations and storage needs. The 1010 Broad Street property would be used for expanded arts educations programming by SLOMA, which is consistent with the existing lease agreement for that property with the City; and WHEREAS, SLOMA’s Proposal is informed by a feasibility study and economic development data that forecast SLOMA’s museum offerings would at tract at least 106,200 individuals to the downtown area (Lord Cultural Resources, 2024), support 93 jobs, and generate total expenditures of over $4.9 million (Americans for the Arts: Arts and Economic Prosperity 6 report and Arts and Economic Prosperity AEP 6 Calculator, January 2024). These data suggest that an investment by the City in SLOMA’s new museum space is fiscally prudent and underly Economic Development Subsidy findings that are required by California Governmen t Code Section 53083, which are documented herein; and WHEREAS, on November 4, 2025, as part of its review of the unaudited year-end 2024-25 fiscal year budget, the City Council received numerous, favorable public comments and testimony from SLOMA staff a nd members of its Board of Directors Page 397 of 444 Resolution No. _____ (2026 Series) Page 2 R ______ regarding the Proposal, and directed staff to prepare a Grant Agreement to provide funding in support of Phase I of SLOMA’s Proposal in an amount up to $500,000 . NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. SECTION 2. Findings. Economic Development Subsidy Under California Government Code Section 53083, the City is requir ed to provide specified information in written form available to the public, through its website, for any economic development subsidy within its jurisdiction and to provide public notice and a hearing regarding the subsidy. An “economic development subsid y” is defined in relevant part under the Government Code as “any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to . . . grants . . .” (Cal. Gov. Code § 53083(g)(1)). The draft Grant Agreement entails a commitment of $500,000 in grant funding towards SLOMA’s new museum space due to the long-standing community partnership with SLOMA and the anticipated economic development and other public benefits the new museum will provide. As such, the Grant Agreement constitutes an “economic development subsidy” and disclosure of the following information and a public hearing are required, as follows (shown in italics): 1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable. San Luis Obispo Museum of Art, A California Non-Profit Corporation.1010 Broad Street, San Luis Obispo, CA 93401. 2) The start and end dates and schedule, if applicable, for the economic development subsidy. The start date is upon entry into the Grant Agreement. City of San Luis Obispo grant funding would be required to be expended within three years following the start date, unless otherwise amended. 3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. The total amount of direct expenditure of public funds is $500,000.00. 4) A statement of the public purposes for the economic development subsidy. The public purpose for the economic development subsidy is to support arts and Page 398 of 444 Resolution No. _____ (2026 Series) Page 3 R ______ cultural activities in the downtown area of San Luis Obispo, which is expected to generate direct and indirect local economic impact benefits. 5) Projected tax revenue to the local agency as a result of the economic development subsidy. According to data provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), the operation of SLOMA’s new museum space will result in $123,500 in local government revenue and will generate $4,926,203 million in total expenditures an annual basis. SLOMA will be subject to possessory interest property tax, however as the tenant improvements for the new museum space are not yet constructed, it is not yet known what the assessment and taxing rate will be. 6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions. According to data provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), the operation of the new museum space will generate 93 jobs. Employment data contained in this report is based on the underlying IMPLAN model and is an annual average headcount of full time, part time, and seasonal employment using the same definitions as the U.S.A. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages. The public hearing and disclosure of economic development subsidy contained herein have been duly noticed and carried out in accordance with the requirements of California Government Code Section 53083. SECTION 3. Environmental Review. The passage of this Resolution and entering into a Grant Agreement is not considered a project under CEQA Guidelines Section 15378. SECTION 4. Grant Agreement. City staff are hereby authorized to execute the Grant Agreement in the form and manner approved by the City Attorney, attached as Exhibit A, and to duly oversee and carry out the terms and conditions of the Lease Agreement. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 2026. Page 399 of 444 Resolution No. _____ (2026 Series) Page 4 R ______ ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 400 of 444 PROPOSAL FOR SUPPORTING THE FUTURE SAN LUIS OBISPO MUSEUM OF ART: A NEW HOME IN THE HEART OF DOWNTOWN 1 Page 401 of 444 1010 BROAD STREET at Mission Plaza POST OFFICE BOX 813 SAN LUIS OBISPO, CA 93406 PH: 805-543-8562 INFO@SLOMA.ORG Ermina Karim Co-Chair Cheryl Cuming Co-Chair Trudie Safreno Treasurer Barbara Bell Executive Committee Lindsey Harn Executive Committee John Dunn Board Member Celeste Hope Board Member Beya Makekau Board Member Mike Quamma Board Member Missy Reitner-Cameron Board Member David Richards Board Member Amy Wright Board Member Leann Standish Executive Director Dear Mayor Stewart and Honorable Councilmembers Boswell, Francis, Marx, and Shoresman: For more than six decades, every City Council—including this one—has made bold investments to reinforce and enrich our community’s economic and cultural vitality. From the creation of Mission Plaza to the support of the PAC to the soon- to-open SLO REP Theatre, each generation of civic leaders has proven through their vision and action that City investment in our social infrastructure is essential to shaping a vibrant, resilient community. In each case, the presiding City Councils recognized that transformative projects seldom come without risk. They weighed long-term returns, ensured alignment with Major City Goals, and moved forward to strengthen the cultural and economic fabric of our community. The Next Chapter in Civic Investment Today, the San Luis Obispo Museum of Art (SLOMA) presents the next opportunity for civic investment and community transformation. Expanding from its historic home at 1010 Broad Street, the Museum will bring together three Higuera Street storefronts (778, 782, and 786) to form a 24,000-square-foot campus—bridging Mission Plaza and the vibrant downtown core with art and community. The total project is estimated at $20 million, to be raised in two phases. October 29, 2025 2 Page 402 of 444 We respectfully request that the City invest $2.5 million to help bring this once-in-a-generation project to completion. A portion—$500,000—would help complete the first of two phases, outfitting the new Museum with the furnishings needed to welcome students, families, and visitors from across and outside the region. The remaining $2 million commitment would assist in the property’s eventual purchase, ensuring this downtown treasure remains a permanent part of San Luis Obispo’s cultural landscape. Importantly, the City’s support now would immediately qualify for a time-limited $2 million matching contribution from the Forbes family, thereby doubling the impact of the City’s investment and signaling to major donors that San Luis Obispo is ready to match their confidence with civic commitment. In doing so, the City would be joining a collection of private donors who, in total, have already pledged $8 million. An Aligned Investment SLOMA’s planned expansion embodies San Luis Obispo’s vision for a sustainable, inclusive, and economically vibrant community. It will directly advance the City Council’s Major Goals FY 2025–27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability as well as Diversity, Equity, and Inclusion. Moreover, it is in alignment with the City’s long-term vision as articulated in the Downtown Concept, Mission Plaza, and Economic Development Strategic Plans and reflects priorities identified by Resonance Consultancy in its Downtown Future Forum Report (2021). Together, these efforts reinforce decades of civic investment in a thriving, culturally rich, interconnected downtown core. The expanded SLOMA will strengthen San Luis Obispo by: Providing a year-round, everyday reason for residents and visitors alike to visit downtown, thus increasing foot traffic and tourism and generating an expected $4–$6 million in new annual downtown spending. Creating an accessible, public destination that will fuel the momentum of downtown revitalization and enrich the city’s enduring sense of place. Exponentially increasing the educational programming and enrollment capacity for local students and families across the Central Coast to build creativity, confidence, and a deeper sense of belonging in our community. Drawing visitors from across the Central Coast to the only art museum between Monterey and Santa Barbara, thus strengthening San Luis Obispo’s reputation as a regional cultural capital and place of creative belonging. A Timely Catalyst Our moment is now. City participation at this stage will help the Museum secure matching funds that will otherwise expire at year-end. Timely participation would also inspire additional private donations keeping the project on track for ground breaking in 2026, and a grand opening in early 2027. San Luis Obispo Museum of Art — Grant Request 3 Page 403 of 444 Private donors are responding enthusiastically to the Museum’s vision: Since August 2025, SLOMA has quietly raised $8 million in cash and pledges from donors across the region, including nearly $600,000 in qualifying gifts toward the Forbes family’s $2-million challenge grant. When the full match is realized, total funds raised will exceed $11 million, more than half of the overall $20 million campaign goal. It’s worth repeating: In just 10 short weeks, our community has rallied around this vision with remarkable enthusiasm, making it clear through their generosity that this project reflects both the needs of today and the dreams of what San Luis Obispo can be for generations to come. Few moments offer such clear alignment between community will, private investment, and public purpose. By partnering in this effort, the City will extend a long legacy of transformational civic investments that strengthen downtown, fuel economic opportunity, and ensure that art and creativity remain central to San Luis Obispo’s identity for generations to come. We are grateful for your leadership and consideration. Respectfully submitted, Leann Standish Ermina Karim SLOMA Executive Director Co-Chair, SLOMA Board of Directors San Luis Obispo Museum of Art — Grant Request 4 Page 404 of 444 WHY IT MATTERS: A DOWNTOWN ANCHOR FOR GENERATIONS TO COME SLOMA’s expansion is about more than adding walls for art: it’s about creating the kind of shared civic space that makes a city feel alive. Across the nation, libraries and museums are emerging as vital anchors of community life, providing the social infrastructure that helps people connect, learn, and imagine together. They invigorate downtowns, fuel local economies and give residents a sense of belonging that digital life cannot replace. The City’s own advisors, Resonance Consultancy, have emphasized that this kind of activation—where culture, community, and commerce intersect—is exactly what defines a thriving 21st-century downtown. Their Downtown Future Forum Report and Visit SLO CAL Destination Management Strategy both point to cultural vitality and authentic local experiences as essential to ensuring a vibrant community, one that attracts and inspires people to be engaged in the civic life of their community (see Appendix). Across the world, cities that are thriving did not happen by chance; they are the products of clear visions and bold investments in the facilities and experiences that cultivate creativity and connection. It’s worth recalling a few defining moments when City Councils made forward-looking investments that forever changed San Luis Obispo’s trajectory: Mission Plaza (1970): Against considerable objections from the business community, the Council transformed a section of Monterey Street into one of California’s first pedestrian plazas. Fifty-five years later, Mission Plaza remains the heart of downtown and is celebrated as the jewel of San Luis Obispo—a model for small-city revitalization and placemaking. Performing Arts Center at Cal Poly (1990s): In partnership with Cal Poly and the Foundation for the Performing Arts Center (FPAC), the City contributed over $5 million— about one-sixth of the total $30 million cost —to help build a world-class venue not far from downtown. In addition, for more than three decades, the City has shared in annual operating support alongside Cal Poly and FPAC, keeping the facility accessible and sustaining a robust calendar of performances that draw audiences from across the region. Chinatown / Hotel SLO (2012): Once again, the Council forged ahead over objections from those lamenting the loss of parking, enabling the creation of the Chinatown project. The result—Hotel SLO—has become a cornerstone of downtown’s social and economic vitality, generating significant TOT revenue and strengthening downtown’s role as the city’s shared gathering place. San Luis Obispo Museum of Art — Grant Request 5 Page 405 of 444 SLO REP Theatre (2020s): Coming soon, thanks to the City’s continued financial support and a vision dating to the 1990s, SLO REP will break ground on a new performing arts venue expected to draw 50,000 patrons to downtown annually. Each of these decisions reshaped downtown in lasting ways. The expanded SLOMA represents the next bold step in that continuum—an investment that ensures our city’s core remains dynamic, economically vibrant and welcoming to all. What the Expansion Will Offer SLOMA’s expansion will connect the Museum’s historic home overlooking Mission Plaza at 1010 Broad Street to two adjacent buildings on Higuera Street, whose combined three storefronts will create a unified 24,000-square-foot art and community campus in the heart of downtown. This dual-front presence will physically link Mission Plaza and Higuera Street – creating a new gateway between civic, creative, and commercial life—weaving together two of San Luis Obispo’s most vibrant pedestrian corridors and activating them with art, education, and community life. The expansion will advance in two sequenced phases to ensure fiscal responsibility and steady progress: Phase 1 ($10.4 million): Getting a museum built. This initial phase will transform three connected, underutilized Higuera Street spaces into one new museum with four galleries, community gathering areas, and a museum store. It encompasses design, permitting, construction, and all furnishings, fixtures, and equipment needed to open to the public as well as bridge funding to support operations during the transition period to the new facility. Completing Phase 1 will deliver a fully operational museum and a visible, high- impact anchor for downtown vitality. Our goal for opening to the public is January 2027. Importantly, SLOMA is contracting with local design and construction firms that rely on local labor. Phase 2 ($10 million): Securing the Museum’s future. Once construction is complete, the second phase will purchase the property outright and establish an operating endowment, ensuring that the Museum’s presence downtown—and the City’s investment—are protected for generations to come. This structure provides long-term financial sustainability and allows the Museum to continue leveraging private philanthropy for ongoing growth and programming. The project will deliver not only more space for art and education but also new sources of earned income that will make SLOMA more financially self-sustaining for the long term. Once fully operational, the new Museum is projected—based on the Lord Cultural Resources feasibility study—to draw close to 110,000 annually to the heart of downtown and generate San Luis Obispo Museum of Art — Grant Request 6 Page 406 of 444 millions in additional economic activity for nearby retailers, restaurants, and hotels (see Appendix). But more than that, the expanded Museum will be an everyday reason to come downtown. By presenting 10 to 15 exhibitions each year, alongside public programs, school tours, and community events, SLOMA will give residents and visitors multiple new reasons to return downtown again and again—building civic connection and sustaining local commerce year- round. Improvements include: Expanded Gallery Space: With nearly triple the current exhibition area, the expanded Museum will, for the first time, be able to host major traveling and co-curated exhibitions, while continuing to champion regional talent. Partnerships with peer institutions will allow SLOMA to share costs and visibility, bringing nationally-recognized art to San Luis Obispo, and making world-class exhibitions accessible to community members who might not otherwise have the opportunity to experience them. A Dedicated Education Space: Transforming the 1010 Broad Street building into classrooms will more than double SLOMA’s reach as an educational resource— restoring access to hands-on art learning that has largely disappeared from many local schools. The space will provide a permanent home for expanded programming, including field trips, art camps, teacher training, and community workshops, serving thousands of students annually while supporting lifelong learning for adults and families across the county (see Appendix). Cultural Gathering and Event Spaces: The expansion includes a versatile indoor gathering hall and outdoor patio, designed to accommodate artist talks, small performances, civic dialogues, and community celebrations. These flexible spaces will serve as a cultural commons for residents and visitors while generating new earned income through event rentals. San Luis Obispo Museum of Art — Grant Request 7 Page 407 of 444 Historic Façade Restoration and Streetscape Improvements: The project will restore and unify the historic façades of two downtown buildings, thereby enhancing architectural character, lighting, and accessibility, and contributing to a more inviting pedestrian experience that will benefit the entire downtown core. Financial Sustainability: The expansion will generate new earned-income streams from event rentals, the museum store, and public programs thus making SLOMA more self-sustaining and resilient, less dependent on donor income, and better equipped to sustain operations for decades to come. A small museum shop on Higuera Street will feature artist-made goods and publications, extending the visitor experience while activating the street frontage. Sustainable Design and Accessibility: Adaptive reuse will minimize carbon impact, preserve the historic downtown scale, and ensure full ADA accessibility, energy efficiency, and flexible design for future needs. As a conservative estimate, these spaces will enable the Museum to double annual attendance to nearly 110,000, more than double educational participation, and greatly expand year-round programming establishing SLOMA as both a cultural anchor and a magnet attracting residents and visitors year-round to the downtown core (see Appendix). Alignment with Major City Goals As both a cultural investment and an economic catalyst, this expansion is in full alignment with this Council’s Major City Goals (FY 2025–27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability, as well as Diversity, Equity, and Inclusion: Promote Economic Resilience Research from Americans for the Arts shows arts patrons spend an additional $25–$70 per visit on local food, retail, and lodging. The expanded Museum is projected to generate conservatively $4–$6 million in new downtown spending each year, serving as both San Luis Obispo Museum of Art — Grant Request 8 Page 408 of 444 a destination and a catalyst for surrounding businesses. The Economic Impact of the Arts & Culture Sector report for 2025 found that SLO County nonprofit arts and cultural organizations like SLOMA contributed to $291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide. The City of San Luis Obispo alone received $99 million in arts-related spending with a total impact of $163 million, underscoring that investment in culture directly strengthens our local and regional economy (see Appendix). Beyond its direct impact, SLOMA addresses a broader economic reality about the changing character of downtowns, shifting from their role as retail cores toward experience-driven destinations that combine culture, dining, and social gathering to attract residents, visitors, and workforce talent. A 2025 Cushman & Wakefield study (“The Rise of the Experiential Economy”) found that thriving downtowns depend on experience-focused anchors such as museums, theaters, and cultural centers. These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns (see Appendix). Locally, the Visit SLO CAL Destination Management Strategy, developed with Resonance Consultancy in 2019, reached similar conclusions: emphasizing that future visitors increasingly seek authentic experiences that connect them with local creativity, culture, and community. The report highlighted the need for new, high-quality cultural offerings to complement San Luis Obispo’s natural assets and outdoor appeal, helping the region compete for both visitors and residents who value quality of life and belonging. Building on that foundation, the project also directly advances three of the City’s top opportunities identified in the Downtown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along the creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experience- driven downtown core that attracts residents and visitors year-round (see Appendix). Finally, just as the City’s financial support and partnership with REACH and the Cal Poly’s Center for Innovation & Entrepreneurship strengthen the region’s innovation economy, investment in SLOMA will enhance the quality of life essential to attracting and retaining the creative and professional workforce that local employers consistently cite as essential to their success. Support Downtown Vitality and the Cultural Arts District The reimagined Museum will serve as a critically needed anchor on Higuera Street and a front door to the Cultural Corridor, drawing consistent, year-round pedestrian activity that also benefits surrounding restaurants, retailers, and hotels. With 2.4 million pedestrians passing annually, the Museum will extend downtown energy beyond weekends and festivals—creating an accessible, open-to-all destination that provides a perpetual return on the City’s long-term investment in the cultural arts. San Luis Obispo Museum of Art — Grant Request 9 Page 409 of 444 Advance Diversity, Equity & Inclusion The repurposed Education Center at 1010 Broad Street will more than double SLOMA’s capacity to serve school-age children and families across the county, especially in rural districts and schools serving low-income communities where formal arts instruction is limited or absent. In partnership with schools, after-school programs, and youth organizations, the Museum will deliver accessible, curriculum-aligned arts learning experiences that nurture creativity, critical thinking, and belonging—skills essential to both academic success and future workforce readiness. At the same time, through exhibitions co-curated with community partners and a sustained commitment to presenting artists and stories from underrepresented communities, SLOMA ensures that every resident and visitor can see themselves reflected and inspired, keeping creativity, inclusion, and shared identity at the center of civic life. Champion Sustainability and Stewardship The adaptive reuse of two existing downtown buildings will cut construction-related carbon emissions by more than half compared to new construction, while preserving the historic urban fabric that defines San Luis Obispo’s character. Energy-efficient systems, improved accessibility, and restored façades will reduce operational costs and advance the City’s goal of carbon neutrality by 2035—an investment that models environmental responsibility and fiscal prudence. SLOMA has retained local design and construction firms who rely on local labor to do the work. In addition, the project directly advances three of the City’s top opportunities identified in the Downtown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along San Luis Creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experience-driven downtown core that attracts residents and visitors year-round. SLOMA Ascendant: A 60-Year Legacy, a 5-Year Transformation While the organization’s roots stretch back more than 60 years to its origins as the San Luis Obispo Art Center, the past five years have painted a clear picture of what SLOMA could do in expanded space. Its performance over the past five years shows it can translate vision into impact and manage public investment with accountability. Since reopening after COVID under renewed staff and board leadership, the Museum has strengthened every facet of its work: dramatically increasing attendance, expanding arts education, growing financial capacity, and forging new civic and community partnerships. The result is an institution that honors its legacy while embracing a modern vision of access, San Luis Obispo Museum of Art — Grant Request 10 Page 410 of 444 inclusion, and artistic excellence—one that stands today as a proven and accountable partner for City investment. Audience Growth Annual visitation has increased from roughly 30,000 in 2019 to 50,000 in 2025, all with free admission. Student Access With a focus on inclusivity and access, each year SLOMA distributes 2,500+ free bilingual art kits through its youth education programs. In addition, free school tours have grown from about 250 students in 2019 to 614 so far this year, with more than 60% from Title I schools. Financial Strength Contributions and grants have more than doubled—from $330,000 in FY 2019–20 to over 800,000 in FY 2024–25—reflecting growing donor confidence and institutional stability. The number of individual donors has also increased by over 50%, and since 2020 SLOMA has established a robust business sponsorship program—now 16 partners strong—alongside a steady stream of competitive grant funding that was not historically secured. Highlighting Central Coast Creativity Nearly half (43%) of the artists featured since 2020 hail from the Central Coast, shown in conversation with artists from across the nation and around the world—positioning San Luis Obispo as both a platform for local voices and a participant in the global arts dialogue. Showcasing Diverse and Underrepresented Artists Over the last five years, more than half of SLOMA’s featured exhibitions have highlighted women, artists of color, or LGBTQ+ artists. Over that same period, we’ve seen engagement with more diverse communities, many of whom are visiting SLOMA for the first time. Community Partnerships SLOMA has collaborated with organizations including the GALA Pride & Diversity Center, SLO County Arts Council, Festival Mozaic, SLO Movement Arts, and Sensorio to co-develop exhibitions and public programs that elevate local voices and reflect the region’s creative diversity. In addition, the Museum partners with a wide range of community organizations— including Woods Humane Society, the Diversity Coalition, EcoSlo, SLO County UndocuSupport, RACE Matters and others—to expand visibility, reach new audiences, and celebrate the many facets of our community. Specialized Educational and Therapeutic Programming In partnership with Cuesta College and Cal Poly, SLOMA regularly provides students with hands-on curatorial experience, exhibition training, and in-classroom learning opportunities, while newer collaborations with Adventist Health and Hospice SLO County are piloting therapeutic art workshops for patients and community members demonstrating how creativity fosters learning, healing, and human connection. San Luis Obispo Museum of Art — Grant Request 11 Page 411 of 444 Civic Leadership and Recognition SLOMA has completed the Museum Assessment Program with the American Alliance of Museums and the Institute of Museum and Library Services (2021) and secured multiple, highly-competitive state and federal grants from the National Endowment for the Arts, IMLS, and California Arts Council (2021–2025). City-SLOMA Public Art Partnership Since entering a management agreement with the City in 2021, SLOMA has delivered seven permanent and temporary public art installations across San Luis Obispo. Organizational Capacity Staff has grown from three to nine, and SLOMA’s exhibitions now receive statewide and national recognition. Since launching its internship program in 2020, the Museum has mentored 25+ college interns—many first-generation students— preparing the next generation of arts professionals. Together, these outcomes demonstrate that SLOMA is not a new or untested idea—it is a thriving, forward-looking institution with the capacity, credibility, and community trust to deliver a strong return on City investment. In Summary: A Sustainable and Inclusive Vision SLOMA’s expansion embodies the City’s vision for a sustainable, inclusive, and economically vibrant community. With steady growth, diversified revenue streams, and a planned endowment, SLOMA enters this project from a position of strength and stewardship. A Once-in-a-Generation Opportunity: The move to Higuera Street places SLOMA at the epicenter of the city’s pedestrian and cultural life—converting 2.4 million annual pedestrians into year-round cultural engagement, small-business activity, and civic pride. Continuity of Cultural Investment: Continuity of Cultural Investment: As with the Performing Arts Center and SLO REP,partnering with SLOMA continues a proven City strategy: leveraging nonprofit institutions to achieve public goals for community vitality, education, and economic resilience—anchored downtown and across the city. Fiscal Responsibility: The requested $2.5 million represents roughly one percent of the City’s current Capital Improvement Plan—a modest investment relative to scale, yet one that yields an outsized return in economic benefit, downtown activation, and cultural identity. San Luis Obispo Museum of Art — Grant Request 12 Page 412 of 444 San Luis Obispo Museum of Art — Grant Request This opportunity is time-sensitive. The alignment of public priorities, private philanthropy, and available downtown property is rare—and is unlikely to come again soon. With design work underway, donor momentum accelerating, and matching funds on the line, City partnership at this moment would secure millions in private investment and ensure the project moves forward on schedule. By investing in this project, the City will help transform three centrally located downtown spaces into a living cultural landmark—one that strengthens civic pride, attracts visitors and employers, and strengthens downtown’s vitality. This is a moment of convergence—where vision, readiness, and opportunity come together in a shared purpose. By stepping forward now, the City can help realize a project decades in the dreaming and ensure that art and creativity remain central to the San Luis Obispo story for generations to come. 13 Page 413 of 444 APPENDIX 1. Economic Impact of the Arts 3 2. Expansion Feasibility Report & Attendance Projections 5 3. Citywide Economic Development & Placemaking 7 4. Downtown Development & Cultural Anchors 9 5. The Creative Economy 11 6. The Rise of the Experiential Economy 12 7. Workforce Expansion 13 8. Arts Education: New Programming Projections 14 9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art 15 10. Digital Sources: Links 18 To project the economic impact of SLOMA’s planned expansion, we based our analysis on the following sources: San Luis Obispo Museum of Art — Grant Request Appendix 1 Page 414 of 444 i. Appendix Executive Summary The San Luis Obispo Museum of Art (SLOMA) and its planned expansion align closely with the City of San Luis Obispo’s broader economic, cultural, and community development goals. Collectively, the sources in this Appendix demonstrate the vital role of arts and culture in fostering economic growth, downtown vitality, workforce development, and placemaking. Economic Impact of the Arts The Arts & Economic Prosperity 5 (2015) study found that San Luis Obispo County’s nonprofit arts and culture sector generated $27.7 million in direct economic activity, supporting 916 jobs and producing $1.1 million in local government revenue. Event attendees spent an average of $30.67 per person, benefiting local restaurants, shops, and hotels. Building on this, Arts & Economic Prosperity 6 (2023) offers an impact calculator that estimates SLOMA’s operations and audiences will contribute nearly $5 million annually to the City’s economy, including $3 million in direct audience spending. Expansion Feasibility Report & Attendance Projections According to Lord Cultural Resources’ 2023 Feasibility Study, a new museum facility would conservatively attract nearly 110,000 visitors annually, giving residents and visitors alike a new reason to come downtown. Citywide Economic Development & Placemaking The City’s 2023 Economic Development Strategic Plan (EDSP) identifies Placemaking & Promotion as a key pillar for economic resilience. Central to this strategy is strengthening partnerships with and funding for the arts community, recognizing that cultural vitality enriches civic life and drives sustainable economic development. Downtown Development & Cultural Anchors Resonance Consultancy’s 2021 Downtown SLO Development Report positions cultural institutions, including SLOMA, as major catalysts for downtown revitalization. The study identifies SLOMA’s expansion as a top opportunity to enhance the city’s Cultural District, attract new visitors, and stimulate local business activity. The Creative Economy The 2025 Economic Impact of the Arts & Culture Sector report underscores the magnitude of the local creative economy: countywide, arts and culture generated $478.7 million in total economic impact and supported over 5,000 jobs. Within the City of San Luis Obispo alone, the arts produced $163 million in total impact, highlighting the sector’s growing importance. The Rise of the Experiential Economy Cushman & Wakefield’sThe Rise of the Experiential Economy (2025) confirms that museums and cultural centers, though typically comprising less than 2% of urban real estate, generate up to 25% of downtown foot traffic. Workforce Expansion & Arts Education: New Programming Projections SLOMA’s workforce and education plans will create new professional positions, support local artists and educators, and expand arts education access through scholarships and new youth programs. Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk the galleries of SLOMA’s future home on Higuera! Together, these findings demonstrate that investment in SLOMA and the broader arts ecosystem is an investment in SLO’s economic vitality, cultural identity, and community well-being. The data consistently show that the arts are not peripheral—they are a central driver of prosperity, creativity, and connection. San Luis Obispo Museum of Art — Grant Request Appendix 2 Page 415 of 444 1. Economic Impact of the Arts Arts & Economic Prosperity 5 is Americans for the Arts’ fifth study of the nonprofit arts and culture industry’s impact on the economy. It documents the economic contributions of the arts in 341 diverse communities and regions across the country, representing all 50 states and the District of Columbia. The Arts & Economic Prosperity 5 report included a breakdown specific to San Luis Obispo County, revealing that the local arts and culture sector generated more than $27.7 million in direct economic activity through organizational spending and visitor income. Attendees at arts and cultural events spent an average of $30.67 per person, supporting locally owned restaurants, shops, hotels, and transportation services. Notably, these figures reflect 2015 dollars—meaning the sector’s current economic impact is even greater today. The Economic Impact of Nonprofit Arts and Cultural Organizations and Their Audiences in San Luis Obispo County, CA (Fiscal Year 2015) Direct Economic Activity Arts and Cultural Organizations + Arts and Cultural Audiences = Total Industry Expenditures Total Industry Expenditures $13,693,022 $14,029,567 $27,722,589 Economic Impact of Spending by Arts and Cultural Organizations and Their Audiences Total Economic Impact of Expenditures Economic Impact of Organizations + Economic Impact of Audiences = Total Economic Impact Full-Time Equivalent (FTE) Jobs Supported 543 373 916 Household Income Paid to Residents $9,527,000 $7,315,000 $16,842,000 Revenue Generated to Local Government $507,000 $594,000 $1,101,000 Revenue Generated to State Government $632,000 $1,018,000 $1,650,000 Event-Related Spending by Arts and Cultural Audiences Totaled $14 million (excluding the cost of admission) Attendance to Arts and Culture Events Resident1 Attendees + Nonresident1 Attendees = All Cultural Audiences Total Attendance to Arts and Culture Events 381,226 75,879 457,105 Percentage of Total Attendance 83.4% 16.6% 100.0% Average Event-Related Spending Per Person $23.37 $67.48 $30.67 Total Event-Related Expenditures $8,909,252 $5,120,315 $14,029,567 Nonprofit Arts and Cultural Event Attendees Spend an Average of $30.67 Per Person (excluding the cost of admission) Category of Event-Related Expenditure Resident1 Attendees Nonresident1 Attendees All Cultural Audiences Meals and Refreshments $13.86 $20.99 $15.04 Souvenirs and Gifts $5.73 $3.78 $5.41 Ground Transportation $1.83 $7.69 $2.80 Overnight Lodging (one night only) $0.79 $32.28 $6.00 Other/Miscellaneous $1.16 $2.74 $1.42 Average Event-Related Spending Per Person $23.37 $67.48 $30.67 Source: Arts & Economic Prosperity 5: The Economic Impact of Nonprofit Arts and Cultural Organizations and Their Audiences in San Luis Obispo County. For more information about this study or about other cultural initiatives in San Luis Obispo County, visit ARTS Obispo’s web site at www.sloartscouncil.org. Copyright 2017 by Americans for the Arts (www.AmericansForTheArts.org). San Luis Obispo Museum of Art — Grant Request Appendix 3 Page 416 of 444 The newly released Arts & Economic Prosperity 6 (AEP6) report is a comprehensive economic and social impact study of the nation’s nonprofit arts and culture industry. Building on a 30-year legacy as the largest and most inclusive study of its kind, AEP6 presents detailed findings from 373 regions across all 50 states and Puerto Rico—spanning communities from 4,000 to 4 million residents, and representing rural, suburban, and urban areas alike. While San Luis Obispo County did not participate in AEP6, the report includes a tool to estimate local impact. Using this calculator, projections for SLOMA alone indicate an estimated $3 million in annual audience spending directly supporting local businesses, and nearly $5 million in total yearly economic activity within the City of San Luis Obispo. Definitions: Total Expenditures: The total dollars spent by your nonprofit arts and cultural organization and its audiences; event-related spending by cultural audiences is estimated using the average dollars spent per person, per event by cultural attendees in similarly populated communities. Jobs (Employment): Employment data in IMPLAN is an annual average headcount of full time, part time, and seasonal employment. Note that a person can hold more than one job, so the job count is not necessarily the same as the count of employed persons. While IMPLAN employment adjusts for seasonality, it does not indicate the number of hours worked per day. It is not, therefore, equal to full time equivalents. This is the same definition used by the U.S. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages. Household Income: The total dollars paid to community residents as a result of the expenditures made by your arts and cultural organization and/ or its audiences. Household income includes salaries, wages, and entrepreneurial income paid to residents. It is the money residents earn and use to pay for food, shelter, utilities, and other living expenses. Government Revenue: The total dollars received by local, state and federal governments as a result of the expenditures made by your arts and cultural organization and/or its audiences. Government revenue includes revenue from local and state taxes (e.g., income, sales, lodging, real estate, personal property) as well as funds from license fees, utility fees, filing fees, and other similar sources. Local government revenue includes funds to governmental units such as city, county, township, and school districts, and other special districts. When using estimates derived from this calculator, always keep the following caveats in mind: (1) the results of this analysis are based upon the averages of similarly populated communities, (2) a unique input-output model was customized for each of these similarly populated communities, providing very specific employment, household income, and government revenue data, and (3) your results are therefore estimates, and should not be used as a substitute for conducting an economic impact study that is customized for your community. San Luis Obispo Museum of Art — Grant Request Appendix 4 Page 417 of 444 2. Expansion Feasibility Report & Attendance Projections From 2022–2023, Lord Cultural Resources (LCR) worked with SLOMA’s staff, board, and members of our community to complete a feasibility study for a new building at our current site at 1010 Broad Street. The report compared similar markets and institutions to formulate projections for operations and engagement. LCR projected that SLOMA would attain an annual attendance average of 106,200 (see excerpt below). While this figure is based on SLOMA’s current space on Broad Street and does not include updated estimates based on Higuera Street’s foot traffic of about 2.4 million/ year, we have included this data as a conservative estimate of our projected attendance. San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 64 At this stage of planning, the capital and project cost estimates total about $54.8 million. This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030. In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park. Project costs also include an assumed endowment growth of $1 million. Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report. 7.2 ATTENDANCE, OPERATING REVENUE AND EXPENSE PROJECTIONS Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario. The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants. 7.2.1 ON-SITE ATTENDANCE PROJECTIONS The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants. To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors. It is also important to emphasize that there is no simple computer formula that leads to accurate attendance projections. While there are ratios and formulas that have been used, including from the experience of comparable or similar institutions, all quantitative methods have weaknesses. And it is important to note, in utilizing data from other museums, that there are a variety of definitions of what constitutes a visitor and no complete certainty that San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 64 At this stage of planning, the capital and project cost estimates total about $54.8 million. This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030. In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park. Project costs also include an assumed endowment growth of $1 million. Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report. 7.2 ATTENDANCE, OPERATING REVENUE AND EXPENSE PROJECTIONS Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario. The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants. 7.2.1 ON-SITE ATTENDANCE PROJECTIONS The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants. To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors. It is also important to emphasize that there is no simple computer formula that leads to accurate attendance projections. While there are ratios and formulas that have been used, including from the experience of comparable or similar institutions, all quantitative methods have weaknesses. And it is important to note, in utilizing data from other museums, that there are a variety of definitions of what constitutes a visitor and no complete certainty that San Luis Obispo Museum of Art — Grant Request Appendix 5 Page 418 of 444 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 65 the comparative attendance figures reported are accurate. The ratios and benchmarks nonetheless help to inform our judgment in preparing the attendance projections for the future SLOMA. Ratios For On-Site Attendance Projections The quantitative methods used to help inform the attendance projections for the future SLOMA are as follows. Extrapolation from Base Level SLOMA Figures Based on Exhibition Space Growth In 2019, SLOMA operated more like a commercial art gallery than an art museum, so its estimated 30,000 attendance figure is less reliable than the 50,000 visitors initially expected in 2023 to serve as the base level for the attendance projections, based on free admission. However, we have lowered the attendance estimate to 45,000 as the base level for the purposes of these projections taking more recent considerations into account. The size of the exhibition space did not change from 2019 to 2023 and is 3.814 net sq. ft. Using the 45,000 base level attendance figure leads to a ratio of about 11.8 visitors per net sq. ft. of exhibition space. The assumption is that the Ideal Scenario expansion of SLOMA facility will increase the total exhibition space to 9,000 net sq. ft. Applying the same ratio of visitors per square foot exhibition space leads to an estimate of about 106,200 visitors in a stabilized year of operation, assumed to be Year 3. Extrapolations From Selected Comparable Art Museums Chapter 2.2 includes detailed attendance, facility, operational and financial data as reported by three non-collecting and three collecting art museums/institutes. The attendance data used largely pre-COVID data regarding the six are set out below leading to ratios for the stabilized Year 3 of the future SLOMA facility and operation based both on the size of exhibition space and the size of the regional population. Average and median figures are set out and we have used the midpoint between those figures as the basis for the ratios. San Luis Obispo Museum of Art — Grant Request Appendix 6 Page 419 of 444 3. Citywide Economic Development & Placemaking In July 2023, the City Council adopted an updated Economic Development Strategic Plan EDSP), aimed at advancing the economic vitality of San Luis Obispo. The plan outlines strategies to strengthen the City’s economic development initiatives while embedding the principles of sustainability, diversity, equity, and inclusion. It also emphasizes retaining existing businesses, expanding the arts and culture scene, and enhancing the vibrancy of Downtown. The second pillar of the plan, Placemaking & Promotion, specifically highlights strengthening the City’s working relationships with, and financial support of, the arts community as a key strategy for enriching cultural offerings and economic development throughout San Luis Obispo. For the 2023 Economic Development Strategic Plan (EDSP), the plan framework has been updated to respond to the dramatic changes that have taken place in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. MISSION STATEMENT Promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes. GUIDING PRINCIPLES ECONOMIC RESILIENCE Maintaining a dynamic economic and business environment. EQUITABLE INCLUSIVE ECONOMIC DEVELOPMENT Expanding economic opportunities for all residents and businesses in San Luis Obispo. SUSTAINABLE ECONOMIC DEVELOPMENT Ensuring economic vitality through climate and system focused sustainable growth. HOLISTIC APPROACH Enhancing internal and external collaboration for effective execution and implementation. REGIONAL COLLABORATION Expanding partnerships with organizations across the region. MAJOR PILLARS BUSINESS & ENTREPRENEUR VITALITY Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities. PLACEMAKING & PROMOTION Maintaining the city’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors. TALENT DEVELOPMENT ATTRACTION Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce. ECONOMIC DEVELOPMENTSTRATEGICPLANUPDATE PREPARED FOR THE CITY OF SAN LUIS OBISPO San Luis Obispo Museum of Art — Grant Request Appendix 7 Page 420 of 444 STRATEGIES PILLAR 1 BUSINESS & ENTREPRENEUR VITALITY 1.1. BUSINESS RETENTION & EXPANSION. Develop a proactive and targeted approach to identify and address the needs of existing businesses, while creating an environment that fosters growth and innovation. 1.2. ENTREPRENEURIAL SUPPORT. Continue to bolster the entrepreneurial ecosystem by improving access to resources, education, and networks for entrepreneurs. 1.3. BUSINESS PREPAREDNESS, SUSTAINABILITY & RESILIENCY. Implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions and effectively support business recovery following natural disasters. 1.4. SMALL BUSINESS DEVELOPMENT. Continue to support the small business community to sustain growth. 1.5. BUSINESS SUPPORT INFRASTRUCTURE. Maintain efforts to develop and grow business support infrastructure and tools. PILLAR 2 PLACEMAKING PROMOTION 2.1. QUALITY OF PLACE PROMOTION. Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest. 2.2. WELCOMING ENVIRONMENT. Create an inclusive and friendly environment for residents, workers, and visitors. 2.3. DOWNTOWN VITALITY. Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses. 2.4. CULTURAL VITALITY. Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City. 2.5. INCLUSIVE NEIGHBORHOOD PLANNING. Encourage inclusive neighborhood planning efforts that benefit residents and encourage both housing production and economic activity. PILLAR 3 TALENT DEVELOPMENT ATTRACTION 3.1. SYSTEM DEVELOPMENT. Encourage the continued strengthening of the system to create Moderate Income + jobs. 3.2. EMPLOYER AND EMPLOYEE INTEGRATION. Develop methodologies, tools, and programs to welcome and acclimate new employers and employees to the community. 3.3. TALENT ATTRACTION AND RETENTION. Position the City as not just a place to visit but also a desirable location to live and work. 3.4. EDUCATIONAL PARTNERSHIPS. Leverage educational partnerships to create and grow pathways to Moderate Income+ jobs that strengthen the local economy. View the full plan and future updates online at https://www.slocity.org/business/economic-development/economic-development-strategic-plan. San Luis Obispo Museum of Art — Grant Request Appendix 8 Page 421 of 444 4. Downtown Development & Cultural Anchors The City of SLO engaged Resonance Consultancy to create a Downtown SLO Development Recommendations report in 2021. The report explores residential, commercial, and public investment opportunities with local stakeholders as part of a Downtown Future Forum visioning workshop. The City’s own report identified Cultural Institutions like SLOMA as a major asset, as they offer unique activities to residents and visitors, and are a significant draw for attracting more people downtown. The report also listed the Cultural District as a major opportunity for promoting SLO’s unique cultural scene throughout the region. re s o n a n c e c o c o m @R e s o n a n c e C o CULTURAL INSTITUTIONS The museums and theaters located downtown offer unique activities to residents and visitors, and are a significant draw for attracting more people downtown. 14 re s o n a n c e c o c o m @R e s o n a n c e C o CULTURAL DISTRICT The concentration of cultural institutions and venues is an opportunity to promote SLO’s cultural scene in the region. 50 San Luis Obispo Museum of Art — Grant Request Appendix 9 Page 422 of 444 The Downtown SLO Development Recommendations report specifically singled out the San Luis Obispo Museum of Art’s expansion as a major opportunity for Downtown SLO’s economic and cultural development. re s o n a n c e c o c o m @R e s o n a n c e C o SLO MUSEUM OF ART EXPANSION An expansion of the Museum of Art could act as a catalyst for cultural programming in Downtown SLO. 51 San Luis Obispo Museum of Art — Grant Request Appendix 10 Page 423 of 444 5. The Creative Economy The 2025 Economic Impact of the Arts & Culture Sector report, created in collaboration with SLO County Arts, the City of El Paso de Robles, and the City of San Luis Obispo, detailed the immense impact of the arts and culture sector on the economies of SLO County. Countywide, arts and culture organizations like SLOMA contributed to “$291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide.” The City of San Luis Obispo alone received $99 million in arts-related spending with a total impact of $163 million. The study also found that the role of local government and community support for arts and culture organizations was a significant point of discussion among focus groups, with participants specifically calling for increased government funding of the arts. San Luis Obispo Museum of Art — Grant Request Appendix 11 Page 424 of 444 6. The Rise of the Experiential Economy A 2025 Cushman & Wakefield study (The Rise of the Experiential Economy) found that thriving downtowns depend on experience-focused anchors such as museums, theaters, and cultural centers. These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns. In other words, SLOMA’s planned expansion requires a relatively small investment that will generate a significant, positive impact for our region in general, and downtown SLO in particular. San Luis Obispo Museum of Art — Grant Request Appendix 12 Page 425 of 444 7. Workforce Expansion Currently, SLOMA has a staff of 9 talented individuals (4 FT, 5 PT), with an annual payroll of about 530,000. Based on the recommendations of the 2023 Feasibility Study by Lord Cultural Resources, we expect to almost double our professional staff within the first year (Table A). Seasonal contractors including exhibiting artists, teaching artists, and department interns are listed in Table B. A. SLOMA Employees (Current + New) B. Artists, Art Educators, and Interns San Luis Obispo Museum of Art — Grant Request Appendix 13 Page 426 of 444 8. Arts Education: New Programming Projections Current space limitations restrict both the scope of our programming and our community’s access to arts education. Transforming SLOMA’s existing facility at 1010 Broad Street into a dedicated Education Center will significantly expand our education capacity, allowing us to collaborate with more educational partners, grow current offerings, and introduce new programs for youth and adults including summer camps, after-school classes, and workshops. The following projection outlines anticipated Year 1 program participation numbers for youth programming, with the majority of participants hailing from San Luis Obispo and neighboring cities. Importantly, all youth programs will include scholarships and financial assistance for low-income families, ensuring that our educational opportunities remain fully accessible to ALL. SLOMA’s free youth education programs, like our popular Second Saturdays events and school tours, will continue. Projections are based on comparable institutions and current enrollment in SLOMA’s existing programs. C. New Youth Programming: Engagement Projections San Luis Obispo Museum of Art — Grant Request Appendix 14 Page 427 of 444 9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk through the galleries of SLOMA’s new home on Higuera. Preliminary rendering: Higuera Street entrance Lobby (center) with a museum gift shop (left) San Luis Obispo Museum of Art — Grant Request Appendix 15 Page 428 of 444 Trust Automation Gallery, with views and access to a creekside patio overlooking Mission Plaza The second of four beautiful galleries capable of exhibiting a variety of artistic media San Luis Obispo Museum of Art — Grant Request Appendix 16 Page 429 of 444 Another spotlight gallery and a dramatic alcove for hanging art installations The creekside patio overlooking historic Mission Plaza will be a community asset and the perfect spot for artist talks, small performances, civic dialogues, and cultural celebrations Renderings by RRM DesignGroupSanLuisObispoMuseumofArt — Grant Request Appendix 17 Page 430 of 444 10. Digital Sources: Links We have included links to content available online and referenced in this Appendix. 1a. Americans for the Arts’ Arts & Economic Prosperity reports, 5th edition Source: https://www.americansforthearts.org/sites/default/files/pdf/2017/by_program/reports_and_ data/aep5/map/CA_SanLuisObispoCounty_AEP5_OnePageSummary.pdf 1b. Arts & Economic Prosperity: 6th edition organizational calculator Source: https://aep6.americansforthearts.org/calculator 2. City of SLO’s Economic Development Strategic Plan Source: https://www.slocity.org/business/economic-development/economic-development-strate- gic-plan 3. Downtown SLO Development Recommendations, 2021 Source: https://www.slocity.org/home/showpublisheddocument/30130/637557419326730000 4. 2025 Economic Impact of the Arts & Culture Sector report Source: https://slocountyarts.org/creative-economy-report 5. The Rise of the Experiential Economy Source: https://www.cushmanwakefield.com/en/united-states/insights/the-rise-of-the-experien- tial-economy San Luis Obispo Museum of Art — Grant Request Appendix 18 Page 431 of 444 Page 432 of 444 Making the World a Better Place Through Culture San Luis Obispo Museum of Art (SLOMA) New Building Facilities and Operations Focused Feasibility Study Final Report Prepared by: Lord Cultural Resources Cost+Plus February 2024 Page 433 of 444 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Lord Cultural Resources is a global professional practice dedicated to making the world a better place through culture. We assist people, communities, and organizations to realize and enhance cultural meaning and expression. We distinguish ourselves through a comprehensive and integrated full-service offering built on a foundation of key competencies: visioning, planning and implementation. We value and believe in cultural expression as essential for all people. We conduct ourselves with respect for collaboration, local adaptation and cultural diversity, embodying the highest standards of integrity, ethics and professional practice. We help clients clarify their goals; we provide them with the tools to achieve those goals; and we leave a legacy as a result of training and collaboration. Our Toronto office is located within the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples. Our New York office is located on the traditional lands of the Lenape peoples. Our Long Beach office is located on the land of the Tongva/Gabrieleño and the Acjachemen/Juaneño Nations, who have lived and continue to live here. We encourage you to acknowledge the presence of the people who came before, wherever you are. Page 434 of 444 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 2 EXECUTIVE SUMMARY This operations-focused feasibility study is intended to provide the foundation for a subsequent fundraising feasibility study, detailed architectural design, and then a capital fundraising campaign to lead to a long anticipated and needed new building for the San Luis Obispo Museum of Art (SLOMA) at its existing site. The current building has a wide variety of deficiencies and its small size limits opportunities to display more works of art, offer additional community programming, and to generate revenue from venue rentals and other earned income sources. The recommendations in this feasibility study take into account the experience of comparable art museums, especially those without permanent collections, as well as other existing museums in and near San Luis Obispo. The recommendations also emerge from an analysis of the existing SLOMA operation, and of potential resident, school and tourist markets for San Luis Obispo and SLOMA in particular. And the recommendations take into account feedback and direction from internal workshops, an external interview process, the SLOMA strategic plan, and the judgment and experience of the consultant team. The SLOMA Board-approved recommendations became assumptions for a new SLOMA facility and operation that in turn became the basis for capital cost estimates and projections of attendance, operating revenues and expenses for the future SLOMA. Among the key assumptions are the following points: Key Assumptions for Future SLOMA • SLOMA will remain a non-collecting institution for the foreseeable future. This helps to limit the size of the building and the capital and operating cost requirements. • The SLOMA brand will be retained. • The start of construction will be in 2028, which will be tied to the 60th anniversary of SLOMA, with the opening of the new building in 2030. • At this pre-design stage, the net useable square footage for the new building is assumed to be 19,250 net square feet (nsf), of which 9,000 nsf will be gallery/exhibition space, compared to the current 3,814 nsf of exhibition space. The new building will also include a multi-purpose space for programs, events and venue Page 435 of 444 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 3 rentals and a classroom/artmaking space. Other assumptions include more building and exhibit support and additional office space. • The total building size at this pre-design stage of planning is 26,950 gross square feet, which takes into account circulation, mechanical and electrical spaces, as well as wall thicknesses. • The larger SLOMA facility and more exhibitions, public programs, venue rentals and other revenue generation will require a growth in the SLOMA staff from the current 6.5 FTE to 12.5 FTE. • Rather than the current completely free admission, the assumption is that visitors in the future will be asked to “pay what you can.” This will still allow for free admission to those who believe they cannot afford to pay, but also encourage many visitors to value their experience in SLOMA by donating to it. • With additional spaces and staff, more substantial earned income will be generated from admissions, venue rentals, retail sales, including an integrated coffee bar, artmaking and other public programs, There will also be additional revenues from memberships, donations and sponsorships and the seeking of additional operating funds from government sources. • The capital campaign for the new SLOMA will include raising an additional $1 million in endowment principal. Ideally, the capital fundraising campaign will include a larger endowment amount. Capital/Project Costs At this stage of planning, the capital and project cost estimates total about $54.8 million. This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030. In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park. Project costs also include an assumed endowment growth of $1 million. Attendance, Operating Revenue and Expense Projections On-site attendance levels are estimated to be a stabilized 75,000 annual visitors. Attendance figures will be higher in the opening two years, especially in Year 1 when the curiosity factor and media coverage lead to a projected attendance of 90,000 annual visitors compared to the current 45,000. The total annual operating budget, in 2024 dollars, is estimated to grow from close to $1 million to the $2.1 to $2.2 million range, which is similar to those of comparable art museums. Earned income levels are projected to stabilize in the range of 32% of Page 436 of 444 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 4 operating revenues, which is also within the common range, compared to the current level of about 11%. After taking operating expenses into account the gap between earned income plus base level figures for private and government support and the operating expenses of the future SLOMA, the additional amount required to break even on operations from private and government sources is projected to be in the range of $424,000 to $490,000 per year. The projections reflect the reality that a substantially expanded and enhanced SLOMA will lead to better service to the community and region and result in increased attendance and earned income, but higher staffing and other operating costs will exceed the revenues that may be generated. Page 437 of 444 Page 438 of 444 1 | P a g e GRANT AGREEMENT SAN LUIS OBISPO MUSEUM OF ART This agreement dated February___2026 is between SAN LUIS OBISPO MUSEUM OF ART, a California non-profit corporation (“SLOMA”) and CITY OF SAN LUIS OBISPO, a California Municipal Corporation and Charter City (“CITY”) (the “Grant Agreement”) with reference to the following: WHEREAS, SLOMA is a long-term lessee of CITY property at 1010 Broad Street located at the corner of Monterey Street and Broad Street, San Luis Obispo, adjacent to Mission Plaza and within CITY’s planned Cultural Arts District, which is the site of the current San Luis Obispo Museum of Art (“1010 Broad Street”); and WHEREAS, CITY and SLOMA have an existing Community Partnership Agreement for the administration of public art, which notes the mutually beneficial relationship between CITY and SLOMA as a way to continue to advance the visual arts, art education, and foster a strong artistic community in San Luis Obispo; and WHEREAS, SLOMA issued a written letter request and submitted its Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (“Proposal”) to City Council on October 30, 2025, which describes SLOMA’s plans to expand from 1010 Broad Street by bringing together three existing storefront properties on Higuera Street between Chorro and Garden (the “New Museum”), while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District; and WHEREAS, SLOMA's proposal indicates that the total project would be implemented in two phases. SLOMA proposal requested that the City Council consider total funding of $2.5 million, of which $500,000 would be used for the first phase to imme diately furnish and activate the new museum space, while the remaining $2 million would be used towards the eventual purchase of the property at a later time; and WHEREAS, at its regularly scheduled meeting on November 4, 2025, the City Council considered the 2024-25 Year End Budget Report, and as per SLOMA’s request, also directed staff to assign funds in the amount of $500,000 as part of the 2nd Quarter 2025-26 Budget Report and further directed staff to prepare this Grant Agreement to be used for Phase 1 of the project, while also directing staff to “include terms that would commit the City to providing funding of some kind toward Phase 2 of the project, subject to further analysis and discussion at a public meeting and with funding allocations determined during future budget actions.” (Council Minutes for November 4, 2025, approved November 18, 2025); and WHEREAS, CITY’s financial support towards implementation of the New Museum being pursued by SLOMA is intended to provide both necessary financial support as well as serve to motivate and catalyze other funders and donors in furtherance of SLOMA’s overall capital campaign and fundraising goals for the New Museum; and WHEREAS, the New Museum will ultimately be available to both residents of the City and visitors alike, thereby serving public purposes in furtherance of CITY’s goals for facilitating Page 439 of 444 2 | P a g e both arts and cultural amenities, as well as contributing to a thriving and prosperous downtown area through economic development activities, and WHEREAS, SLOMA’s plans to expand from 1010 Broad Street and implement the New Museum are consistent with CITY’s Land Use Element of the General Plan (2014), Downtown Concept Plan (2017), Economic Development Strategic Plan (2023), and CITY’s Major City Goal for “Cultural Vitality, Economic Resilience and Fiscal Sustainability” adopted as part of the 2025-27 Financial Plan. NOW, THEREFORE, CITY and SLOMA for and in consideration of the mutual benefits, promises and agreements set forth herein, do agree as follows: 1. Phase I Implementation On or before the date that is three (3) years following the execution of this Grant Agreement, SLOMA shall complete construction of Phase 1 of the New Museum. SLOMA’s failure to comply with this term may result in amendment in accordance with Paragraph 8, provided substantial progress or extenuating circumstances can be documented, or termination of this Grant Agreement as provided herein. 2. Grant Amount and Allowed Expenses City agrees to pay SLOMA a one-time only grant on a reimbursement basis, as provided in Section 4, in an amount up to $500,000 (“Grant Funds”), to be used towards implementation and activation of the New Museum, subject to the conditions set forth herein. The Grant Funds shall only be used for costs directly related to Phase 1 of the New Museum as specified below. CITY’s Grant Funds may only be used for “soft” costs, or expense items that are not considered direct construction costs, such as the purchase of furniture and other items supporting the operations and maintenance of the New Museum (“Eligible Costs”). If there is a dispute about whether a project cost is an Eligible Cost, CITY shall have final determination of whether the cost is an Eligible Cost. SLOMA acknowledges and represents that the Grant Funds will not be used for construction of any element of the New Museum, including any architectural, engineering, direct construction, demolition, or alteration costs defined as contractor expenses for labor, project management, installation, materials, equipment, utilities and other direct construction costs. 3. Conditions Precedent to Funding SLOMA shall satisfy the following required conditions prior to any disbursement of Grant Funds by CITY. With respect to any requested reimbursement, SLOMA shall: a. Maintain its 501(c)(3) non-profit status. b. Shall secure all other grant funds, donations, pledges, or financing necessary to complete Phase 1 of the New Museum, inclusive of the amount of Grant Funds provided by the CITY pursuant to this Grant Agreement, and shall first utilize (or provide for first utilizing) all other grant funds, donations, or financing then available (collectively “Other Available Funding”) for the New Museum prior to any request for reimbursement from CITY. However, SLOMA’s initial reimbursement request for Grant Funds may be made prior to complete exhaustion of Other Available Page 440 of 444 3 | P a g e Funding, as necessary, to ensure continued availability of funding to complete the New Museum. c. Secure all necessary project entitlements and building permit(s) for Phase 1 of the New Museum that may be applicable as further described in Paragraph 6, below. d. Submit for CITY review and approval a fundraising plan demonstrating project feasibility, including cost estimating and project schedule. e. Submit for CITY review and approval forecasted budgets for the first three years of operating the New Museum demonstrating a fiscally sustainable business model. f. Identify additional public benefits associated with the New Museum that can reasonably be facilitated and implemented, such as public art in the creek walk area or similar. 4. Reimbursement Requests Upon satisfaction of the conditions identified in Section 3, reimbursement payment requests for Eligible Costs shall be submitted to CITY’s Deputy City Manager. Reimbursement payment requests shall include supporting documentation including itemized invoices or other evidence that supports the request. Reimbursement payment requests may be submitted on a bi-monthly (twice per month) basis and will be reviewed and approved for reimbursement by the CITY in a timely manner, and CITY will make best efforts to process and pay reimbursement requests within fifteen (15) business days from the date of such payment request, provided that sufficient documentation supporting the reimbursement request is provided to CITY. Sufficiency of payment documentation shall be in the sole but reasonable discretion of the CITY and CITY reserves the right to request and receive additional reasonable documentation to support SLOMA’s reimbursement requests and as may be appropriate to aid in City’s determination of whether the requested reimbursement payment is for an Eligible Cost. 5. Use of Grant Funds at Other Sites If SLOMA determines that implementation of Phase 1 of the New Museum at the specified site is impractical or inadvisable for any reason, then SLOMA may not use the Grant Funds for any other purpose without prior written approval of the City Council. 6. Permits SLOMA shall apply for and obtain all necessary building and other related permits and project entitlements necessary to implement the New Museum in conformance with local, state, and federal laws. This Grant Agreement does not authorize the construction or tenant improvement of the New Museum or otherwise alter, impact, or interfere with the exercise of CITY’s independent regulatory and land use authority. 7. Funding Source Recognition SLOMA will ensure recognition of the role of CITY in providing funding through this Grant Agreement. CITY shall be identified as a funding source in all applicable publications, press releases, social media outreach and similar fundraising promotions. 8. Amendments and Phase 2 Funding CITY and SLOMA may amend this Grant Agreement at any time provided that such amendments make specific reference to this Grant Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the City Council. Such amendments will not invalidate this Grant Agreement, nor relieve or release Page 441 of 444 4 | P a g e either CITY or SLOMA from its obligations under this Grant Agreement, except as expressly provided in writing in any such duly executed amendments. It is expressly anticipated that this Grant Agreement may be amended to provide additional funding support towards Phase 2 of the New Museum expansion project, as that Phase is defined and described in SLOMA’s Proposal. To be considered for future Phase 2 funding, at a minimum SLOMA shall: a. Satisfactorily complete and be in good standing with CITY for all items listed under Paragraphs 3 and 9, herein. b. Submit a detailed Phase 2 project description and supportive justification for the funding request. c. Submit sufficient due diligence items suitable for CITY’s review to ensure any expenditure of public funds is appropriately supported and documented. CITY shall have no obligation whatsoever to enact and approve an amendment to provide additional funding of any amount, which is subject to the actual availability of funds at the time a request is made and is within the then-seated City Council’s sole discretion. 9. Quarterly Reports and Financial Assurance SLOMA shall provide quarterly reports on both Phase 1 of the New Museum and the ongoing operations and activation of 1010 Broad Street, including the use of CITY Grant Funds, if any, during the reporting period. These reports shall be due at the end of the first month after the end of the calendar quarter (i.e. January, April, July, and September) and submitted to the Deputy City Manager. The quarterly reports should include percentage of completion, other available funding on hand or then receivable, and work anticipated to be completed in the following quarter. CITY reserves the right to request and receive copies of invoices, account statements, or audits of SLOMA’s financial records pertinent to implementation of Phase 1 of the New Museum and in CITY’s sole discretion, to withhold reimbursement payments until satisfactory reports and supporting documentation are received. 10. Assignability SLOMA shall not assign or transfer any interest in this Grant Agreement without the prior written consent of the City Council. 11. Conflict of Interest No member of the CITY’s governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the New Museum project, will have any personal financial interest, direct or indirect, in this Grant Agreement. SLOMA will also take any and all steps and enact appropriate policies to assure compliance. 12. Severability If any provision of this Grant Agreement is held invalid, the remainder of the Grant Agreement will not be affected thereby and all other parts of this Grant Agreement will nevertheless remain in full force and effect. Page 442 of 444 5 | P a g e 13. Entire Agreement This Grant Agreement constitutes the entire agreement between CITY and SLOMA for the use of funds received under this Grant Agreement and shall supersede all prior communications and proposals, whether electronic, oral, or written between CITY and SLOMA with respect to this Grant Agreement. 14. No Agency or Employment SLOMA is solely responsible for all activities supported by this Grant Agreement. Nothing in this Grant Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship between SLOMA and CITY. SLOMA shall not represent itself as an agent of CITY for any purpose and has no authority to bind CITY in any manner whatsoever. SLOMA and all of its agents, representatives, or participants in any manner in the performance of its obligations and duties hereunder, shall be employees, independent contractors, or volunteers solely of SLOMA. They shall not for any purpose be considered employees or agents of CITY. 15. Indemnification SLOMA agrees, to the fullest extent permitted by law, to defend, indemnify, and hold harmless CITY its officers, directors, affiliates, employees, and agents (“City Indemnitees”), from and against any and all claims, liabilities, losses and expenses (including reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of SLOMA, its employees or agents, in applying for, accepting, or use of the Grant Funds, or in carrying out the New Museum project as set forth. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from SLOMA’s performance under this Grant Agreement, SLOMA 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. 16. Termination The City Manager may, within reasonable discretion, initiate termination of this Grant Agreement in the event of any material breach of the terms of this Grant Agreement by SLOMA. Material breach includes breach of Sections 1-7, 9 and 15 of this Grant Agreement, but does not include minor delays in reporting or other delays in obligations set forth herein caused through no fault of SLOMA, as well as administrative or clerical errors made in good faith. Upon the City Manager’s written notice of breach, SLOMA shall have forty-five (45) calendar days to cure any such breach (the “Notice of Breach”). Should SLOMA fail to cure or provide documentation of substantial progress towards curing such breach within forty-five (45) calendar days of the date of the Notice of Breach, the City Manager shall provide written notice of termination of this Grant Agreement (the “Notice of Termination”). Said termination shall be effective thirty (30) calendar days after the City Manager mails the Notice of Termination to SLOMA. Any remaining Grant Funds in excess of then unpaid Eligible Costs, as defined in Section 2, actually incurred as of the date of notice of termination shall revert to CITY upon the effective date of termination. 17. Notices For purposes of notice under this Grant Agreement, all notices shall be considered effective upon being sent by certified mail to the following addresses: Page 443 of 444 6 | P a g e CITY: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Attn: City Manager SLOMA: San Luis Obispo Museum of Art 1010 Broad Street San Luis Obispo, CA 93401 Attn: Executive Director CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION By: Whitney McDonald City Manager SAN LUIS OBISPO MUSEUM OF ART, A CALIFORNIA NON-PROFIT CORPORATION By: ___________ Leann Standish Executive Director APPROVED AS TO FORM: By: Christine Dietrick City Attorney Page 444 of 444