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Tuesday, December 10, 2013
6:00 p.m.
SPECIAL MEETING
Council Chamber
990 Palm Street
CALL TO ORDER: Mayor Jan Marx
ROLL CALL: Council Members John Ashbaugh, Dan Carpenter, Carlyn
Christianson, Vice Mayor Kathy Smith, and Mayor Jan Marx
PLEDGE OF ALLEGIANCE: Council Member Ashbaugh
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15
minutes total)
The Council welcomes your input. You may address the Council by completing a
speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may
address the Council on items that are not on the agenda. Time limit is three minutes.
State law does not allow the Council to discuss or take action on issues not on the
agenda, except that members of the Council or staff may briefly respond to statements
made or questions posed by persons exercising their public testimony rights (Gov.
Code Sec. 54954.2). Staff may be asked to follow up on such items.
CONSENT AGENDA
A member of the public may request the Council to pull an item for discussion. Pulled
items shall be heard at the close of the Consent Agenda unless a majority of the Council
chooses another time. The public may comment on any and all items on the Consent
Agenda within the three minute time limit.
San Luis Obispo – Special Meeting Agenda of December 10, 2013 Page 2
C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(MEJIA)
RECOMMENDATION: Waive reading of all resolutions and ordinances as
appropriate.
C2. MINUTES OF TUESDAY, NOVEMBER 5, 2013 (CODRON/MEJIA)
RECOMMENDATION: Waive oral reading and approve as presented.
C3. MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS
IMPROVEMENT DISTRICT – REQUEST FOR PROPOSALS (CODRON/CANO)
RECOMMENDATION: As recommended by the Tourism Business Improvement
District (TBID) Board, authorize the issuance of a Request for Proposals for
Marketing Services for the TBID, Specification No. 91275.
C4. LEASE AGREEMENT WITH THE SAN LUIS OBISPO COUNTY ARTS
COUNCIL FOR USE OF 1123 MILL STREET OFFICE SPACE – RESOLUTION
(STANWYCK/BREMER)
RECOMMENDATION: Adopt a resolution entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, approving the terms for the
lease of 1123 Mill Street with the San Luis Obispo County Arts Council and
authorizing the Mayor to execute the lease and all necessary supporting
documents.”
C5. ADDITION OF 1144 BUCHON STREET TO MASTER LIST OF HISTORIC
PROPERTIES – RESOLUTION (JOHNSON/LEVEILLE)
RECOMMENDATION: As recommended by the Cultural Heritage Committee,
adopt a Resolution entitled “A Resolution of the City Council of the City of San
Luis Obispo, California, adding the property located at 1144 Buchon Street to the
Master List of Historic Resources, CHC 106-12.”
C6. CONTRACT AWARD FOR TESTING AND TRAINING SERVICES ON
TYLER/ENERGOV SOFTWARE (PADILLA/SCHMIDT)
RECOMMENDATION: Approve, and authorize the City Manager to execute, a
contract with Software Solutions for testing and training services on
Tyler/EnerGov software in an amount not to exceed $43,950.
San Luis Obispo – Special Meeting Agenda of December 10, 2013 Page 3
C7. FISCAL YEAR 2014-15 GRANT APPLICATION FOR OFFICE OF TRAFFIC
SAFETY SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (GESELL/
ELLSWORTH)
RECOMMENDATION: 1) Authorize the Police Department to submit a grant
application to the Office of Traffic Safety for the Fiscal Year 2014-15 Selective
Traffic Enforcement Program (STEP) in an amount not to exceed $250,000; and
2) if the grant is awarded, authorize the Chief of Police to execute all grant
related documents and authorize the appropriation of the grant amount.
C8. PARKING SERVICES DIVISION ORGANIZATIONAL ASSESSMENT –
REQUEST FOR PROPOSALS (GRIGSBY/HORCH)
RECOMMENDATION: 1) Authorize the issuance of a Request for Proposals for
consulting services for an Organizational Assessment for the Parking Services
Division, Specification No. 91282; and 2) authorize the City Manager to execute
an agreement in an amount up to $45,000 to perform the organizational
assessment.
C9. COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2014 (MARX/
CHRISTIANSON/MEJIA)
RECOMMENDATION: Approve Council Liaison Subcommittee assignments for
calendar year 2014.
C10. MONTEREY STREET WATERLINE REPLACEMENT PROJECT (MATTINGLY/
LAWRENCE)
RECOMMENDATION: 1) Authorize the City Manager to award a contract to
Cannon for design services for the Monterey Street Waterline Replacement,
Specification No. 91284, in the amount of $59,840; 2) approve a Budget
Amendment Request to transfer $59,840 from Water Completed Projects to the
design phase of the project; 3) authorize staff to advertise for bids for the
construction of the Monterey Street Waterline Replacement, Specification No.
91298; and 4) authorize the City Manager to execute the construction contract if
the lowest responsible bid is within the Engineer’s Estimate of $336,026.
C11. SLO SKATE PARK PUBLIC ART DESIGN (STANWYCK/MUDGETT)
RECOMMENDATION: As recommended by the Parks and Recreation
Commission, conceptually approve the public art design “Concrete Jungle” for
the City of San Luis Obispo (SLO) Skate Park located at Santa Rosa Park.
San Luis Obispo – Special Meeting Agenda of December 10, 2013 Page 4
PUBLIC HEARINGS
PH1. REISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS FOR 19-UNIT
SENIOR RENTAL HOUSING PROJECT AT 443 PACIFIC STREET (CARMEL
STREET APARTMENTS) – RESOLUTION (JOHNSON/COREY – 15 MINUTES)
RECOMMENDATION: 1) Conduct a public hearing under the Tax and Equit y
Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of
the Internal Revenue Code of 1986; and 2) adopt a Resolution entitled “A
Resolution of the City Council of the City of San Luis Obispo, California, approving
the reissuance of Multifamily Housing Revenue Bonds by the Housing Authority of
the City of San Luis Obispo for the Carmel Street Apartments located at 433 Pacific
Street.”
PH2. REISSUANCE OF MULTIFAMILY HOUSING REVENUE LOAN FOR 41-UNIT
SENIOR RENTAL HOUSING PROJECT AT 2005 JOHNSON AVENUE (DEL
RIO TERRACE APARTMENTS) – RESOLUTION (JOHNSON/COREY – 15
MINUTES)
RECOMMENDATION: 1) Conduct a public hearing under the Tax and Equity
Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of
the Internal Revenue Code of 1986; and 2) adopt a resolution entitled “A
Resolution of the City Council of the City of San Luis Obispo, California,
approving the reissuance of a multifamily housing revenue loan by the Housing
Authority of the City of San Luis Obispo for the Del Rio Terrace Apartments
located at 2005 Johnson Avenue.”
BUSINESS ITEMS
B1. 2012-13 FISCAL YEAR ANNUAL REPORT ON DEVELOPMENT IMPACT
FEES AND MAKING CERTAIN FINDINGS RELATED TO IMPACT FEE
BALANCES – RESOLUTION (PADILLA – 30 MINUTES)
RECOMMENDATION: 1) Review the 2012-13 Fiscal Year Report on
Development Impact Fees; and 2) adopt a Resolution entitled “A Resolution of
the City Council of the City of San Luis Obispo, California, accepting the 2012 -13
Annual Report on Development Impact Fees and making certain findings related
thereto.”
San Luis Obispo – Special Meeting Agenda of December 10, 2013 Page 5
B2. UPDATE ON THE CITY’S FISCAL STATUS AND STATUS OF MAJOR CITY
GOALS (PADILLA – 30 MINUTES)
RECOMMENDATION: 1) Review and discuss an update on the City’s fiscal
status based on unaudited 2012-13 year-end financial results and first quarter
trends in 2013-14; and 2) review and discuss the status of the City’s progress in
accomplishing the Major City Goals adopted by Council for 2013-15.
B3. GENERAL FUND FIVE YEAR FISCAL FORECAST: 2013 -18 (PADILLA – 30
MINUTES)
RECOMMENDATION: Review and discuss the results of the General Fund Five-
Year Fiscal Forecast for 2013-18.
COUNCIL LIAISON REPORTS (not to exceed 15 minutes)
Council Members report on conferences or other City activities. Time limit—3 minutes.
COMMUNICATIONS (not to exceed 15 minutes)
At this time, any Council Member or the City Manager may ask a question for
clarification, make an announcement, or report briefly on his or her activities. In
addition, subject to Council Policies and Procedures, they may provide a reference to
staff or other resources for factual information, request staff to report back to the
Council at a subsequent meeting concerning any matter, or take action to direct staff to
place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)
ADJOURNMENT
Adjourn to a Regular Meeting to be held on Tuesday, January 7, 2014 at 6:00 p.m. in
the City Council Chambers, 990 Palm Street, San Luis Obispo, California.
LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk.
The City of San Luis Obispo wishes to make all of its public meetings accessible to the public.
Upon request, this agenda will be made available in appropriate alternative formats to persons with
disabilities. Any person with a disability who requires a modification or accommodation in order to
participate in a meeting should direct such request to the City Clerk’s Office at (805) 781 -7100 at least
48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107.
City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or
documents provided to the City Council are available for public inspection in the City Clerk’s Office
located at 990 Palm Street, San Luis Obispo, during normal business hours, and on the City’s website
www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at
(805) 781-7100.
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MEETING DATE: December 10, 2013
ITEM: C2
MINUTES
CITY OF SAN LUIS OBISPO
REGULAR MEETING OF THE CITY COUNCIL
Tuesday, November 5, 2013 - 6:00 P.M.
Council Chamber, 990 Palm Street
San Luis Obispo, California
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday,
November 5, 2013 at 6:00 p.m. in the City Council Chamber, located at 990 Palm
Street, San Luis Obispo, California, by Vice Mayor Smith.
ROLL CALL
Council Members
Present: Council Members John Ashbaugh, Dan Carpenter, Carlyn Christianson,
Vice Mayor Kathy Smith
Council Member
Absent: Mayor Jan Marx
City Staff
Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michael
Codron, Assistant City Manager, and Anthony J. Mejia, City Clerk, were
present at Roll Call. Other staff members presented reports or responded
to questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Ashbaugh led the Pledge of Allegiance.
APPOINTMENT
A1 . APPOINTMENT TO THE HOUSING AUTHORITY
Motion by Council Member Christianson, Second by Council Member
Ashbaugh, Carried 4-0, to confirm the appointment of Jay Beck to the Housing
Authority to complete an unexpired term through March 31, 2015.
C2 - 1
City Council Meeting Minutes – November 5, 2013 Page 2
PUBLIC COMMENT
Donald Hedrick, San Luis Obispo, spoke on the importance of transparency in
government and the electoral process.
Amy Cornell, San Luis Obispo, announced that a Cal Poly student government
representative will be attending Council meetings to provide updates on campus
activities.
Jeannie Blackwell, San Luis Obispo, urged Council to send a letter to the County Board
of Supervisors in support of a county-wide ban on hydraulic fracturing.
Vice Mayor Smith advised that Council will consider the subject of hydraulic fracturing as
part of the Council’s Legislative Platform in January 2014.
Dave Hannings, San Luis Obispo, voiced objection to a proposed development at 667-
669 Monterey Street, citing concerns with massing, circulations, and parking; asserted
that the Planning Commission ignored the concerns of the public.
Kurt Friedmann, representing SLO Hosts, distributed a petition in support of allowing
short term rentals and urged Council to suspend enforcement pending modifications to
the Code. A hard copy of Mr. Friedmann’s petition is on file with the City Clerk.
Justin Wellner, representing Cal Poly, advised that a public forum regarding a proposed
student housing project will be held on November 6, 2013 at 6:00 p.m. at the University
Union.
CONSENT CALENDAR
Donald Hedrick, San Luis Obispo, spoke on the potential for flooding at a creek adjacent
to the Damon-Garcia sports fields and urged that the City not allow development near the
park until it has been addressed.
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER
ASHBAUGH, CARRIED 4-0, to approve recommendations for Consent Calendar Items
C1 thru C10, with the removal of Items C2 and C7 for separate consideration.
C1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to waive reading of all resolutions and
ordinances as appropriate.
C2 - 2
City Council Meeting Minutes – November 5, 2013 Page 3
C2. LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FOR THE
USE OF 3807 AND 3855 BROAD STREET FOR OVERFLOW PARKING AT
THE DAMON-GARCIA SPORTS FIELDS
Please refer to Page 5 for discussion of this item.
C3. DECLARATION OF HEALTHY EATING ACTIVE LIVING CITY – RESOLUTION
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to adopt a Resolution No. 10473 (2013
Series) entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, recognizing the tremendous physical and fiscal toll obesity has on the
community, and committing to promote a healthier lifestyle through diet, nutrition
and exercise by supporting City participation with the ‘Healthy Eating Active
Living’ cities campaign (HEAL).”
C4. JACK HOUSE RESTROOM AND GAZEBO REMODELS, SPECIFICATION NO.
90569D
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to:
1) Approve the Plans and Specifications for “Jack House Restroom and Gazebo
Remodels, Specification 90569D”.
2) Authorize staff to advertise for bids and authorize the City Manager to award
the contract, if the lowest responsible bidder is within the Engineer’s Estimate
of $240,000.
3) Approve the transfer of $55,000 from the project’s construction management
account to the construction account at the time of bid award.
C5. FIRST AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT
SANTA ROSA PARK
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to approve the First Amendment to the
Telecommunications Facility Lease with New Cingular Wireless PCS, LLC, and
authorize the City Manager to execute the Amendment and any related
documents on behalf of the City.
C2 - 3
City Council Meeting Minutes – November 5, 2013 Page 4
C6. PARKING SCOOTER FLEET REPLACEMENT
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to:
1) Authorize the purchase of two (2) parking scooters as approved in the 2013-
15 Financial Plan per the City’s purchasing policy.
2) Authorize the Finance Director to issue a sole source purchase order to
Municipal Maintenance Equipment, Inc., in the amount of $61,594.56.
C7. PURCHASE OF FIRE ENGINE, SPECIFICATION NO. 90059
Please refer to Page 6 for discussion of this item.
C8. SURPLUS DESIGNATION OF EIGHT VEHICLES AND EQUIPMENT AND
AUTHORIZATION OF SALE
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to authorize the surplus designation of
eight (8) vehicles and pieces of equipment by sale, auction, trade-in, or other
disposal methods in accordance with the City’s policies and procedures as
prescribed in the Financial Management Manual Sections 405-L and 480-B.
C9. AERIAL SIGNAL TRUCK REPLACEMENT, SPECIFICATION NO. 91234
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to:
1) Approve the Aerial Signal Truck Replacement capital project, Specification
No. 91234 from the Equipment Replacement Fund balance.
2) Approve the use of Cooperative Purchasing Agreement with National Joint
Powers Alliance (NJPA) Contract #060311-AII through Altec Industries,
effective July 13, 2013, for the purchase of a 2014 Altec AT235 Signal Aerial
Truck.
3) Authorize the Finance Director to execute a purchase order to Altec Industries
in the amount of $80,837 for a 2014 Altec AT235 Signal Aerial Truck.
4) Authorize the surplus designation of signal aerial truck, Fleet Asset No. 0414,
by trade-in in accordance with the City’s policies and procedures as prescribed
in the Financial Management Manual Section 405-L and 480-A and in
accordance with California Air Resources Board ruling for out-of-state sale.
C2 - 4
City Council Meeting Minutes – November 5, 2013 Page 5
C10. FIRST AMENDMENT TO BUILDING AGREEMENT AND LEASE FOR RETAIL
SPACE AT 837 MARSH STREET
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to:
1) Approve modifications to the existing retail lease space located at 837 Marsh
Street.
2) Authorize the City Manager to execute the First Amendment to the Building
Agreement and Lease with Jamestown Premier SLO Retail, L.P., for existing
retail lease space located at 837 Marsh Street.
ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
C2. LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FOR THE
USE OF 3807 AND 3855 BROAD STREET FOR OVERFLOW PARKING AT
THE DAMON-GARCIA SPORTS FIELDS – RESOLUTION
In response to Council inquiries, Parks and Recreation Director Stanwyck
explained that the City may not utilize the SESLOC north pa rking lot during
business hours; advised that City facility hosts will guide park users to
appropriate parking facilities; advised that the City will continue to explore long
term parking solutions for the sports park.
MOTION BY VICE MAYOR SMITH, SECOND BY COUNCIL MEMBER
ASHBAUGH, CARRIED 3-1 (COUNCIL MEMBER CARPENTER VOTING NO), to:
1) Approve a 10-year parking lease agreement with SESLOC Federal Credit
Union in the amount of $32,000 for the use of property at 3807 and 3855
Broad Street as overflow parking for the Damon-Garcia Sports Fields during
peak uses and authorize the Mayor to execute the lease agreement;
2) Adopt Resolution No. 10472 (2013 Series) entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, approving the terms of the
lease of SESLOC Federal Credit Union owned property at 3807 and 3855
Broad Street and authorize the Mayor to execute the lease for overflow
parking at Damon-Garcia Sports Fields with all necessary paperwork.”
C2 - 5
City Council Meeting Minutes – November 5, 2013 Page 6
C7. PURCHASE OF FIRE ENGINE, SPECIFICATION NO. 90059 - RESOLUTION
Council discussion ensued relative to whether the Cal Poly contract for fire
services adequately recovers the City’s expenses to provide said services.
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 3-1 (COUNCIL MEMBER CARPENTER
VOTING NO), to:
1) Approve the Lease Purchase of one (1) new 2013 Pierce Arrow PUC Type 1
Fire Engine in the amount of $548,351 with payments to be made over a 5
year term and authorize the City Manager, Finance Director and City Attorney
to execute all related documents on behalf of the City.
2) Authorize the Finance Director to execute a sole source lease purchase order
through Oshkosh Capital in the amount of $548,351 for the purchase of a new
2013 Pierce Arrow PUC Type 1 Fire Engine.
3) Authorize the surplus designation of 1991 Pierce Fire Pumper, Fleet Asset
No. 9180, by sale, auction, trade-in or other method in accordance with the
City’s policies and procedures as prescribed in the Financial Management
Manual Section 405-L and 480.
4) Adopt Resolution No. 10469 (2013 Series) entitled “A Resolution of the City
Council of the City of San Luis Obispo, California, approving the lease
purchase of a fire engine from Oshkosh Capital and approving the final form
of financing documents and official actions.”
PUBLIC HEARING ITEMS
PH1. ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT
DISTRICT – RESOLUTION
Tourism Manager Cano reviewed the contents of the Administrative Report and
responded to Council inquiries.
Vice Mayor Smith opened and closed the Public Hearing, there being no one
desiring to speak to this issue.
City Clerk Mejia announced that two written protests to the Tourism Business
Improvement District were received and based on the total percentage needed;
this does not amount to a legally sufficient protest.
C2 - 6
City Council Meeting Minutes – November 5, 2013 Page 7
MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER ASHBAUGH, CARRIED 4-0, to adopt Resolution No. 10470 (2013
Series) entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, declaring the basis and the levy of the assessment for the San Luis
Obispo Tourism Business Improvement District, and affirming the establishment
of the District.”
PH2. 2013 BICYCLE TRANSPORTATION PLAN (GPI/ER 71-13) – RESOLUTION
Public Works Director Grigsby, Principal Transportation Planner Mandeville,
Transportation Assistant Rice, and Transportation Program Assistant Christian,
narrated a PowerPoint presentation entitled “Bicycle Transportation Plan” and
responded to Council inquiries. A hard copy of the PowerPoint presentation is on
file with the City Clerk’s Office.
Vice Mayor Smith opened the Public Hearing.
Donald Hedrick, San Luis Obispo, opined that the bicycle lane on Sacramento
Drive should be located on the opposite side of the street, noting that it impacts
parking for the businesses along the route.
Charlene Rosalas, representing the Chamber of Commerence, voiced support for
the Bicycle Transportation Plan, noting that the plan aligns with the Chamber’s
Economic Development Plan and improves the quality of life for residents.
Dan Revior, Director of the San Luis Obispo County Bicycle Coalition, expressed
gratitude to the City’s Bicycle Committee and staff for its work on the Bicycle
Transportation Plan and urged Council approval.
Lea Brooks, San Luis Obispo, commended Council and the community for its
efforts to improve bicycle transportation.
Ken Kenow, San Luis Obispo, urged Council to approve the subject plan and to
allocate additional funds for bicycle transportation projects during the next budget
cycle.
Jim Wolfe, Chair of the Bicycly Advisory Committee, thanked Council for its
support of improving the bicycle infrastructure improvements and urged approval
of the plan.
There being no others desiring to speak on this item, the Public Hearing was
closed.
C2 - 7
City Council Meeting Minutes – November 5, 2013 Page 8
Following discussion, MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND
BY COUNCIL MEMBER CARPENTER, CARRIED 4-0, to adopt Resolution No.
10471 (2013 Series) entitled “A Resolution of the City Council of the City of San
Luis Obispo, California, adopting the 2013 Bicycle Transportation Plan and
Negative Declaration of Environment Impact (GPI/ER 71-13)”, including verbiage
modifications to: 1) Page 23 to indicate that the Public Works Director may make
adjustments as long as it is consistent to with the intent of the plan; 2) Page 77,
Section 4.7, to strike out “Measure Y” and only refer to “funding”; and 3) Page A -
123, Laguna Lake, to add “right-of-way” in reference to LOVR.
BUSINESS ITEMS
B1. APPOINTMENTS TO THE 2014 COUNCIL COMPENSATION COMMITTEE
City Clerk Mejia reviewed the contents of the Administrative Report and
responded to Council inquiries.
Don Hedrick, San Luis Obispo, opined that he should have been included in the
selection process for the Council Compensation Committee.
City Clerk Mejia explained the voting process for selecting committee members,
provided the Council with paper voting ballots, and tallyed and announced each
Council Member’s vote.
Following the selection process, MOTION BY COUNCIL MEMBER CARPENTER,
SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 4-0, to:
1) Appoint the following individuals to the Council Compensation Committee,
effective immediately and sunsetting upon presentation of its
recommendations to the City Council:
Former Elected Official John Ewan
Personnel Board Members Marcia Nelson
Citizens at Large Gordon Mullin
4th Committee Member Ken Tasseff
5th Committee Member Amy Kardel
Alternate 1 Karen Adler
Alternate 2 Carol Sexton
Alternate 3 Allen Settle
2) Direct the Council Compensation Committee to review the full Council
compensation package and make recommendations to the City Council no
later than May 6, 2014 and to review compensation for the Planning
Commission and Architectural Review Commission in conjunction with its
review of Council compensation.
C2 - 8
City Council Meeting Minutes – November 5, 2013 Page 9
B2. APPROACH TO CONDUCTING A COMPENSATION STUDY
Human Resources Director Irons reviewed the contents of the Administrative
Report and responded to Council inquiries.
Charlene Rosalas, representing the Chamber of Commerence, voiced support for
conducting a compensation study in alignment with the Council’s compensation
philosophy.
Steve Barasch, San Luis Obispo, voiced concerns regarding the state of the
economy and the sustainability of employee compensation packages; suggested
incorporating median family income and per capita income into the study
methodology.
In response to Council discussion, Human Resources Director Irons spoke on the
role of the employee’s committee as part of the compensation study; noted that the
purpose of including employees as part of the study is to instill a sense of
ownership and understanding of the results; pointed out the the consultant and the
Human Resources Department will provide indepentent guidance as it pertains to
the study.
MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL
MEMBER CARPENTER, CARRIED 4-0, to support the approach to be used to
conduct a compensation study in accordance with the Council adopted
Compensation Philosophy as provided in the work program supporting the major
city goal Sustain Essential Services, Infrastructure, and Fiscal Health.
COUNCIL LIAISON REPORTS
Liaison reports were received from Council Members Ashbaugh, Christianson, and Vice
Mayor Smith.
COUNCIL COMMUNICATIONS
None.
ADJOURNMENT
There being no further business to come before the City Council, Vice Mayor Smith
adjourned the meeting at 8:37 p.m.
Anthony J. Mejia
City Clerk
APPROVED BY COUNCIL: xx/xx/13
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C2 - 10
FROM: Michael Codron, Assistant City Administrative Officer
Prepared By: Molly Cano, Tourism Manager
SUBJECT: REQUEST FOR PROPOSAL FOR MARKETING SERVICES FOR
THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT
DISTRICT.
RECOMMENDATION
As recommended by the Tourism Business Improvement District (TBID) Board, release Request for
Proposal (RFP) Specification No. 91275 for tourism marketing services.
DISCUSSION
Background
In June 2008 Council adopted Ordinance 1517 establishing a tourism business improvement district
(TBID) as requested by the local lodging industry. The assessment became effective on October 1,
2008 and the use of funds was defined in Section 12.42.030 as follow:
“This ordinance is made and enacted pursuant to the provisions of the Parking and
Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets
and Highways Code). The purpose of forming the district as a business improvement area
under the Parking and Business Improvement Area Law of 1989 is to provide revenue to
defray the costs of services, activities and programs promoting tourism which will benefit
the operators of hotels in the district through the promotion of scenic, recreational, cultural
and other attractions in the district as a tourist destination.”
Subsequently in March 2009 the City Council, as recommended by the Tourism Business
Improvement District Board, awarded the TBID Marketing Services contract to Level Studios, now
Rosetta. The initial contract allowed for the inaugural contract term from March 2009-June 2010
with two additional two-year extensions at the Board’s recommendation through June 2014. In July
2014, the current contract extension will be exhausted.
RFP Discussion
At the September 11, 2013 meeting, the TBID Board began the discussion about the RFP process.
The Board discussed the importance of the all commissioners’ input in the review and selection of
the contractors however, the Board agreed to create a taskforce to develop the RFP document taking
into consideration the new Strategic Plan document approved by the TBID Board. (Attachment 1-
September 2013 Board Minutes)
During the November meeting, the TBID Board reviewed the RFP in-depth as presented by the
taskforce. The RFP requests for the development of a guiding marketing plan taking into account
Meeting Date
Item Number 12/10/13
C3 - 1
the current foundation created since 2008-09 as well as the execution of that plan. (Attachment 2-
November 2013 Board Minutes)
The Board subsequently approved the attached RFP document, requesting companies to submit
proposals with a two-phase approach. The proposals sought should therefore provide the following
components:
1. Establishment of a City of San Luis Obispo Tourism Marketing Plan
2. Execution of the Marketing Plan
The initial contract term would commence in July 2014- June 2016 with the opportunity for two
additional two-year contract extensions based on the recommendation of the TBID Board.
FISCAL IMPACT
Since the inception of the TBID, the marketing services contract has accounted for 50% or more the
overall TBID program budget. In FY 2014-15 the contract is budgeted for $650,000 which is 55%
of the projected TBID budget for that year. Based on the 2013-15 Financial Plan, the TBID budget
is projected at $1,181,100 resulting in $531,100 for all other TBID investments during the 2014-15
fiscal year.
In FY 2015-16 the contract is budgeted for $700,000 which is 56% of the projected budget for that
year. Based on the 2013-18 Five-Year Fiscal Forecast, the TBID budget is projected at $1,245,000
or 20% of the projected TOT.
ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to
issue this RFP for marketing services. Staff does not recommend this option as the existing
marketing contract will expire on June 30, 2013 without the ability to extend the term.
ATTACHMENTS
1. TBID Board Minutes (September 11, 2013)
2. Draft TBID Board Minutes (November 13, 2013)
3. Request for Proposal – Specification No. 91275
..\RFP for contracted Marketing Services for TBID (Codron-Cano)
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Tourism Business Improvement District
Meeting Minutes
Wednesday, September 11, 2013
10 am
Hampton Inn
CALL TO ORDER: Chair Clint Pearce
PRESENT: Wilkins, Patel, Hutton, Walker, Patranella
STAFF PRESENT: Molly Cano, Tourism Manager Chair Pearce: Call to Order at 10:03 am
PUBLIC COMMENT
Ermina Karim of the San Luis Obispo Chamber of Commerce introduced Lynne Biddinger to the committee. Lynne will be an interim team member at the Chamber through the end of the year working on the tourism programs, contracts with the City for promotions, and other specific projects.
OATH OF OFFICE
Commissioner Patranella was sworn in to serve on the TBID Board.
CONSENT AGENDA ACTION: Moved by Hutton/Patel to approve the consent agenda.
Motion carried 6:0
BUSINESS ITEMS
1. QUARTERLY REPORT BY CONTRACTOR
Ryan Allshouse and Freya Wilkerson representatives from Rosetta presented the quarterly report on
the ShareSLO program. Allshouse presented an overview of where the campaign has been since the
creation including phase one: Build Awareness with the development and launch of the campaign,
phase two: Be Everywhere to maintain a presence on multiple social channels and attended events,
and phase three: Grow the Community to inspire and advocate to carry on sharing content. Some of
the results achieved include a thriving social community, over 3 million impressions, strong
connections with local businesses, events, and tourism organizations, and an active network of local
passionate leaders (aka Street Team). After a very brief update on the role of the Ambassador,
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Allshouse shared how the remaining program funds would be reallocated focusing on management,
advertising, and street team allocations. Wilkerson then presented information on the Street Team
participants including testimonials from the street team members. Allshouse then unveiled the new
ShareSLO.com look and functionality.
2. TBID ANNUAL REPORT
The Board reviewed the FY 2012-13 TBID annual report for recommendation to City Council on
October 1, 2013. Pending the approval of the report by the City Council, the annual public hearing
for the TBID will be scheduled for the November 5, 2013 City Council meeting. Commissioner Patel
will present the report to the City Council with Molly Cano on October 1, 2013. The committee
provided feedback on the report. Overall they were very enthusiastic about the information and the
way it was presented. The committee asked staff to add the mention of increased length of stay for
the goals section and to add a section about Visit San Luis Obispo County under partnerships.
ACTION: Moved by Patel/Hutton to accept the 2012-13 TBID Annual Report for submission to
City Council with the requested additions.
Motion carried 6:0
3. EVENTS PROMOTION SUBCOMMITTEE
The committee reviewed the draft event funding RFP that will be implemented in FY 2014-15. The
RFP will be an annual process with the PCC however the TBID will accept applications throughout
the year if funds are available for consideration. The committee commended the hard work of the
subcommittee on creating the document.
ACTION: Moved by Walker/Wilkins to accept the Events Promotion application as presented for
use by the TBID.
Motion carried 6:0
4. MARKETING CONTRACT RFP DISCUSSION
The Board began the discussion of RFP process for the Marketing Services contract with the TBID
and considered the formation of a taskforce to facilitate the process. Staff presented the expected
timeline for the Board to follow in order to meet the deadlines of the RFP process. The Board
discussed the importance of the all commissioners’ input in the review and selection of the
contractors. The Board agreed to create a taskforce to develop the RFP document as the first phase
but would like to revisit the next phase for the consideration of the full board.
ACTION: Moved by Patel/Hutton to form a taskforce for the creation of the RFP document for
the Board’s consideration.
Motion carried 6:0
The following members formed the taskforce: Commissioners Patel, Hutton, Wilkins and constituent
Michael Adams.
5. STRATEGIC PLANNING UPDATE
The Board received a presentation from the taskforce on the draft strategic plan document from the
retreat and taskforce work sessions. Chair Pearce presented the overview of the document including
the mission and visions for the TBID. He then presented the strategic imperatives and the
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measurable to rate success for those goals. The Board shared that they were excited to see the
report and the associated measurements.
Public Comment:
Ermina Karim from the SLO Chamber commended the Board on the inclusive work that was done to
create the document and setting the course for the next few years.
Mark Landon from the Nature Corps thanked the Board for including the partners in the process and
expressed how impressive the draft plan looked overall.
The final report will be presented for adoption at the October 9, 2013 TBID Board Meeting. Board
and constituents are encouraged to thoroughly review the report in preparation for the meeting.
COMMITTEE COMMUNICATION
HOTELIER UPDATE No new hotel news to be discussed. The Board was encouraged to revisit their liaison list and make an effort to share the strategic plan document with their assigned properties.
PCC UPDATE Molly Cano informed the TBID on the results of the PCC’s contract with Pierre Rademaker Design for the development of a Citywide Style Guide and Brand Standards Manual. Cano shared that after the recommendation for adoption by the PCC, Council reviewed it and accepted the direction as well.
TOURISM PROGRAM UPDATE
Molly Cano presented the Tourism Program update:
Cano introduced Lee Johnson, the City’s new Economic Development Manager.
Cano provided an update on SAVOR planning:
Continuing the booth design and other components of our event integration.
SAVOR Run packages – last day to register online is tomorrow 9/12
SAVOR sweepstakes – 160 entries
Our SAVOR weekend getaway includes:
- 3 night stay at your choice of one of our 39 destination hotels
- two tickets to Sunset at Hearst Castle on Thursday
- two 2-day M ain Event tickets for the festivities at Santa Margarita Ranch on Saturday
and Sunday
- two entries for the run event of your choice at the inaugural SAVOR Run on Sunday
Cano is seeking volunteers for the booth by the end of the week
Cano is preparing for the Visit California media event, September 24 in LA. The following day,
Cano will be participating in the inaugural Visit California PR Summit.
Staff provided an update on the Jazz Festival to the Board. Due to permitting issues, the dates
have been moved to May 2014.
Meeting adjourned at 11:48 am
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Tourism Business Improvement District
Meeting Minutes
Wednesday, November 13, 2013
10 am
City Hall - Council Hearing Room
CALL TO ORDER: Board Chair Clint Pearce
PRESENT: Pearce, Wilkins, Patel, Patranella
STAFF PRESENT: Molly Cano, Tourism Manager
Call to Order at 10:02 am
PUBLIC COMMENT
None.
CONSENT AGENDA
ACTION: Moved by Patel/Wilkins to approve the consent agenda.
Motion carried 4:0
PRESENTATIONS
1. VISIT SAN LUIS OBISPO COUNTY QUARTERLY REPORT
Stacie Jacob, Executive Director of Visit San Luis Obispo County presented the quarterly
contractor report for July-September activities. The report featured Sunset SAVOR the Central
Coast event recap.
BUSINESS ITEMS
1. MARKETING SERVICES RFP REVIEW
The taskforce members and staff presented the final draft of the Marketing Services RFP for the
Board’s consideration for recommendation to City Council. The Board discussed adding the
tradeshow function into the description of works section. The Board also discussed the importance
of having the marketing contractor present short marketing activity updates at every meeting.
Public Comment:
Doug Klein asked the Board how PR was addressed in the RFP. The Board referenced the PR section
of the description of work.
DRAFT
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Tourism Board Improvement District Minutes Page 2
ACTION: Moved by Patel /Wilkins to approve the Marketing Services RFP for recommendation to
Council with the inclusion of the tradeshow show function in the description of work
section.
Motion carried 4:0
The Board also considered the advertising needs for the RFP. Traditional placement includes
advertising mention in the Tribune. The taskforce also recommended advertising in the Pacific Coast
Business Times as well. Staff presented rough advertising costs for the publication at about $300-
$350 per publication. Staff also informed the Board that they do have funds earmarked for projects
that would include RFP advertising within the budget.
ACTION: Moved by Patel /Patranella to approve funds not to exceed $700 for advertising the RFP
in both the Tribune and Pacific Coast Business Times.
Motion carried 4:0
2. LOCAL TOUR PARTNERSHIP PRESENTATION
The Board received a proposal from Kenny Gazin and his business partner David Cummings
regarding the development of local tour offerings and the opportunity to partner on the promotion
of those tours. Gazin informed the Board that he was looking to create a San Luis Obispo experience
that would share the areas unique offerings with visitors. The initial tour packages would be focused
on “lay of the land” offerings for visitors to become familiar with the area. The tours would be
scheduled for bookings and would offer a shorter or longer tour experience with varying price
structure. Gazin also shared that he has invested in a vehicle for the tours that would need artwork
to “wrap it”. He would also partner with SLO Safe ride to provided additional transportation as
needed. Gazin did request that the Board consider an exclusive partnership with his company. He
also expressed that he would be seeking support from the TBID through existing marketing and
promotions, access to communicate collectively with the hotels, and then on going marketing
support from the TBID. Clint Pearce informed the Board that due to a conflict of interest, he would
recuse himself from voting on this partnership.
The Board expressed the overall interest for an offering like this however; they also expressed
concern over the ability to partner exclusively with a particular tour company. The Board also had
additional questions on the details of the tour logistics including the more specific routes, logistics,
booking, and more information on the on what’s requested for official partnership and marketing
requests of the TBID.
Public Comment:
Michael Adams also suggested that they work directly with the hotels to offer the tours.
Doug Klein mentioned that a program like this would provide a great extension to the TBID’s
website.
The Board requested that Mr. Gazin further develop the program with specifics and a follow up
presentation be placed on the agenda in December.
3. TRADESHOW DELEGATION
The Board discussed the selection of the delegates representing the TBID at the upcoming
tradeshows. Staff presented the show dates and destinations: 1/25-26/14 in Santa Clara; 2/8-9/14 in
Long Beach; and 3/29-30/14 in San Diego. One partner is needed per show in addition to staff
because Rosetta will be sending 2 representatives. Historically, the Board has opened up
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Tourism Board Improvement District Minutes Page 3
participation to constituents. Staff would distribute an email with the opportunity, constituents
would have a deadline to respond with interest, and the representation would be randomly drawn
at the following monthly Board meeting. The Board discussed having Board members fill the open
positions or offering the opportunity to constituents. After discussion, the Board recommended that
one slot could be filled by a Board member for a show and the remaining 2 shows would be open for
constituent interest. If there was a lack of interest from constituents then Board members could fill
the remaining slots. The Board noted that constituent participation in the representation at the
tradeshow would be for the destination as a whole and all TBID properties, and not for the purpose
of promoting individual properties.
ACTION: Moved by Patel /Wilkins to open up participation to constituents for the San Diego and
Long Beach show and have Rachel Patranella participate in the Santa Clara show.
Motion carried 4:0
COMMITTEE COMMUNICATION
HOTELIER UPDATE
Clint Pearce reported that he had a constituent meeting with Petit Soleil.
Molly Cano report on a constituent lunch with the management team at Embassy Suites.
PCC UPDATE
Clint Pearce reviewed the PCC minutes from the October 9 meeting.
TOURISM PROGRAM UPDATE
Molly Cano presented the Tourism Program update.
Public Hearing update:
- Public hearing on 11/5
- Received 2 written protests and no oral protests
- Council action: adopted the resolution for the district
Council Meeting: Short-term rentals
- to temporarily suspend enforcement of Municipal Code §17.22.010(G) related to the prohibition
of vacation rentals, pending adoption of an ordinance which provides for residential homestays.
- direct staff to return to Council with a draft ordinance, which provides for owner occupied
residential homestays, as soon as practicable; and 2) to address financing for associated staff
costs during the mid-year budget review.
- The other item that staff will be reviewing in the interim is the collection of TOT and TBID based
on how homestays fit within assessment district
Strategic Plan update:
- Taskforce will reconvene within the next few weeks to begin strategy to approach the
implementation of the strategic imperatives
VSLOC Sustainable Funding Taskforce:
- During the October 16 Board Meeting, they presented the funding landscape tourism promotion
in SLO County in comparison to the funding in the comp set- includes VSLOC as well as the
county BID collections overall
- They presented to opportunity to explore a new TID/BID to collect new dollars for the purpose
of Countywide marketing – above and beyond the jurisdiction specific BIDs
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Tourism Board Improvement District Minutes Page 4
- At that time the Board formed a taskforce made up of lodging reps from across SLO County and
destination/tourism managers to look at a sustainable
- The taskforce has begun meeting to initiate the process and exploration of a new distract and all
that it would entail including the marketing plan of how the dollars would be spent
- There are still a lot of reach and education to be done. The TBID will be involved in that process-
both Clint and I are participants on the taskforce.
- First step in the education process is a meeting on November 25 (Monday) from 2-4 pm at the
Courtyard by Marriot with VSLOC and Civitas (John Lambeth)
- All owners, managers, Board members, council members, etc are invited to attend
- Any questions, comments- please feel free to contact either Clint or Cano
CCTC/VSLOC Partnership: Australia Sunrise TV
- the top-rated morning show in Australia ready to come to America to cover The Original Road
Trip
- 4-5 part series of 3-4 minute shows on Sunrise (the top-rated morning show in Australia with a
segment audience of 300,000).
- VSLOC participated in the pay-to-play opportunity with CCTC
- 10/29-30 came to SLO County: came through SLO to shoot b-roll on 10/30
ROPT:
- Took place last weekend, the street team was in full effect, preshow promotion on Friday, and
attendance on Saturday, great social coverage
SLO Marathon planning:
- Planning underway
- Out of area promotion has already begun
- Registration signup are off to a great start- especially team sign ups
Visit CA Outlook
- February 5-6 in Pasadena
- Budget: $1500 total, buts split with PCC so it’s about $750 for TBID
Meeting adjourned at 11:47 am
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Notice Requesting Proposals for
MARKETING SERVICES
for the City of San Luis Obispo Tourism Business Improvement District
Administration Specification No. 91275
The City of San Luis Obispo is requesting proposals for marketing services for tourism promotion
for 2014-16 fiscal years, pursuant to Specification No. 91275.
All proposals must be received by the Finance and IT Department by 3:00 p.m., Friday, January 31,
2014 when they will be opened publicly in the City Hall Council Hearing Room, Room 9, 990 Palm
Street, San Luis Obispo, CA.
Proposals received after said time will not be considered. To guard against premature opening, each
proposal shall be submitted to the Finance & IT Department, 990 Palm Street, San Luis Obispo, CA
93401, in a sealed envelope plainly marked with the proposal title, specification number, proposer’s
name, and time and date of the proposal opening. Proposals shall be submitted using the forms
provided in the specification package.
A pre-proposal conference will be held via conference call on Thursday, January 8, 2014 at 11:00
a.m. to answer any questions that the prospective proposers may have regarding the City’s request
for proposal. If you are interested in participating in the conference call, please contact Molly Cano
at mcano@slocity.org for the call information.
Proposal packages may be obtained on the City’s website at www.slocity.org under Bids &
Proposals. Additional information may be obtained by contacting Molly Cano, Tourism Manager,
at (805) 781-7165.
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TABLE OF CONTENTS
A. Description of Work 3
B. General Terms and Conditions 6
Proposal Requirements
Contract Award and Execution
Contract Performance
C. Special Terms and Conditions 10
Proposal Content
Proposal Evaluation and Selection
Proposal Review and Award Schedule
Contract Term
Contract Invoices
Submittal of References
Statement of Contract Disqualifications
Ownership of Materials
Release of Reports and Information
Copies of Reports and Information
D. Agreement 12
E. Insurance Requirements 14
F. Proposal Submittal Forms 15
References
Statement of Disqualifications
Proposal Submittal Form
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DESCRIPTION OF WORK
In October 2008, the San Luis Obispo City Council established a Tourism Business Improvement
District (TBID) and appointed an advisory board staffed by hoteliers to make recommendations to
Council regarding the use of the assessment funds. The board’s primary focus is to promote San Luis
Obispo as a visitor destination to enhance the economic well being of the lodging industry. The
primary purpose of the marketing efforts is to encourage overnight travel to and stays in San Luis
Obispo from other parts of California. Over the past 5 years since its inception, the TBID as an
organization has been successful in developing the San Luis Obispo brand and growing overnight
stays.
The board is requesting proposals from marketing firms/ agencies to conduct the organization’s
overall marketing and branding efforts. Responding firms should have experience in marketing travel
destinations and/or lifestyle brands. The contracted agency will be responsible for creating, managing,
and executing a comprehensive annual plan to support the TBID’s branding, marketing, advertising,
and digital initiatives.
For the purposes of this proposal, the budget for the development of a Marketing Plan and its
execution in fiscal years 2014-16, is considered to be up to $650,000 in fiscal year 2014-15 and up to
$700,000 in fiscal year for 2015-16. However, the City and the TBID Board are seeking proposals for
a marketing plan and reserve the option to contract for the actual execution of the plan with a separate
entity. The proposal should therefore be structured into two phases and/or components:
1. Establishment of Marketing Plan
2. Execution of Marketing Plan
In order to allow for varied agency models to participate in this RFP process, there are a few options to
approach the RFP response including:
• An individual agency may provide a response for the entire scope of services.
• One agency may provide a response for the scope of the services achieved through contracting
work from alternate agencies. These proposals will need to identify the contracting agencies
and the work product they will produce.
• Multiple agencies may collaborate to present a single proposal that includes the full scope of
work. These proposals will need to demonstrate previous projects that have required similar
collaboration and a clear definition of how communication will maximize the partnership of
these companies.
A. Description of Work
1. Establish a comprehensive Marketing Plan, taking into full consideration the TBID’ s
recently published five-year strategic clarity summary (available online). The Marketing
Plan should include but be not limited to the following program components:
• Target Audience & Approach: Define the target audience in accordance with the
strategic clarity summary and establish the approach to successfully inspire travel to
San Luis Obispo.
• Overall Brand Management: Discuss the approach to management and further
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development of the TBID brand platform including Sincerely, California and
ShareSLO. ShareSLO.com brand management would also include the program
management and evolution of the Street Team and other ShareSLO components. This
area would also include representation, coordination, and general support for consumer
and industry tradeshows, conferences, and events.
• Digital Assets including the management, oversight, hosting, content
development/management, and enhancements to SanLuisObispoVacations.com and
ShareSLO.com. The program should include an overall social media strategy including
community blog portal of ShareSLO.com, as well as the approach and promotion of the
monthly targeted e-Newsletters.
Note: The current technical architecture for SanLuisObispoVacations.com and
ShareSLO.com is WordPress and the e-Newsletter is distributed through Campaign
Monitor. Hosting of these sites would be the responsibility of the agency.
• Media/Advertising Planning & Purchasing: In support of the target markets, the
marketing plan should contain a comprehensive media and advertising plan. This plan
should include: online, print, broadcast, social, and co-operative opportunities. The
strategy should also include: Event Marketing (for City sponsored event partnerships),
integration of strategic partnerships in marketing plan, Email Marketing, media
plan/buys/research/optimization, analytics and reporting, SEM/SEO, and content
development.
• Public Relations/Communication Coordination: Public Relations management plan is
not currently required for this proposal; however the proposer is encouraged to provide
a provision for services and description of approach. Note: While, Public Relations is
not currently included in this plan due to the contract partnership though the City with
the SLO Chamber of Commerce, the proposer must be willing to cooperatively work
with the said contractor to coordinate the media commutations with the overall
marketing plan, as needed.
• Industry/Event Partnerships: Define the approach to leverage the TBID relationships
and investments with strategic industry partners (ex. Visit California), local business
and organization (ex. local restaurants) and local special events (ex. SAVOR the
Central Coast) in connection with the strategic clarity summary.
2. Implement the strategies as outlined in the Marketing Plan by utilizing the full marketing
mix as it pertains to tourism related marketing. Planning, developing and implementing
promotional tools on the City and TBID’s behalf that meet the criteria of reaching the
defined target audience considering traditional and new media opportunities. All
campaigns are subject to TBID Board review and approval prior to implementation.
3. Explore cooperative marketing opportunities with strategic partners the Visit San Luis
Obispo County, SLO Wine Association, Chamber of Commerce, Cal Poly, the Downtown
Association, the Arts Community, etc.
4. Establish and maintain an effective working relationship with the TBID Board and
Tourism Manager. Scheduled meetings will normally be on a weekly basis with the
Tourism Manager and monthly basis with the TBID Board. Contractor should provide
input, refine, and adjust marketing objectives and strategies as recommended by the TBID
Board and adopted by Council.
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5. Provide budget management. Pay invoices and account for all such activity conducted on
the City and TBID’s behalf in monthly billing materials.
6. Provide account services such as, but not limited to, marketing concept, design and
production, media buys and placement, account budget and additional services as needed.
Provide status reports on the account budget including standing to date monthly reports.
The agency should indicate whether they intend to collect a flat fee or accept a
commission. If contracted with a flat fee, agencies are required to dedicate the commission
amount to the purchase of additional advertising.
8. Provide the TBID Board with timely, written reports, one week prior to the regular monthly
meeting, which is held the second Wednesday of each month at 10 am, on the status of all
aspects of the marketing campaign. Personally present a monthly report on past activities
and continuation of plan. The reports should encompass:
- Summary of all marketing activities in the reporting period.
- Summary of advertising placed during the reporting period.
- Summary of direct consumer marketing placed during the reporting period.
- Summary of results and responses to materials during the reporting period.
- Examples of materials distributed during the reporting period including proof of
advertising.
- Summary of strategic alliances supported during the reporting period.
- Website statistics and interpretation.
- ShareSLO program activities within the reporting period.
9. Planning and commissioning any research activity that the TBID Board and City Council
may require, including suggestions for and methods of continuing evaluation of the
effectiveness of the commissioned marketing campaign.
10. Coordinating activities of the marketing campaign with the TBID Board and establish
effective working relationships with its members and assigned staff to achieve coordinated
and efficient use of all available resources thus avoiding duplication of efforts with other
city promotional efforts.
11. Provide advertising "fulfillment" services in response to requests for material arising out of
the TBID’s marketing program.
EACH PROPOSAL PACKAGE MUST INCLUDE THE FOLLOWING STATEMENTS AND
INFORMATION TO BE CONSIDERED FOR SELECTION:
1. Statement of the proposed workscope. The workscope should:
• Cover both fiscal years.
• Show cost for each individual component of the proposal.
• Outline implementation of proposed marketing strategies.
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• State the general approach (philosophy) toward marketing the City and its lodging industry
as a leisure, corporate, and group travel destination.
• State the general strategies for achieving the above approach.
• Include a budget for a comprehensive marketing campaign and a fee schedule for services
to be provided.
• Identify the agency program manager and key personnel responsible for the campaign, such
as copy and design/production personnel, and any subcontractors.
2. Resume of professional experience and samples of previous work (presentation of portfolio,
including work for existing clients and evidence of strategic thinking and problem solving
ability will be requested of those proposers who are selected for interviews). These materials
will become the property of the City of San Luis Obispo.
3. A list of three professional references, including names and telephone numbers of current clients.
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B. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal
(proposer) shall meet all of the terms, and conditions of the Request for Proposals (RFP)
specifications package. By virtue of its proposal submittal, the proposer acknowledges
agreement with and acceptance of all provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be enclosed in an envelope which shall be sealed and addressed to
the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA,
93401. In order to guard against premature opening, the proposal should be clearly labeled
with the proposal title, specification number, name of proposer, and date and time of proposal
opening. No FAX submittals will be accepted.
3. Proposal Withdrawal and Opening. A proposer may withdraw the proposal, without
prejudice, prior to the time specified for the proposal opening, by submitting a written request
to the Director of Finance for withdrawal, in which event the proposal will be returned to the
proposer unopened. No proposal received after the time specified or at any place other than
that stated in the "Notice Requesting Proposals" will be considered. All proposals will be
opened and declared publicly. Proposers or their representatives are invited to be present at the
opening of the proposals.
4. Submittal of One Proposal Only. No individual or business entity of any kind shall be
allowed to make or file, or to be interested in more than one proposal, except an alternative
proposal when specifically requested.
5. Communications. All timely requests for information submitted in writing will receive a
written response from the City. Telephone communications with City staff are not encouraged,
but will be permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
6. Proposal Retention and Award. The City reserves the right to retain all proposals for a
period of 60 days for examination and comparison. The City also reserves the right to waive
non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete
one part of a proposal and accept the other, except to the extent that proposals are qualified by
specific limitations. See the "special terms and conditions" in Section C of the specifications
for proposal evaluation and contract award criteria.
7. Competency and Responsibility of Proposer. The City reserves full discretion to determine
the competence and responsibility, professionally and/or financially, of proposers. Proposers
will provide, in a timely manner, any and all information which the City deems necessary to
make such a decision.
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8. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a
written contract with the City within ten (10) calendar days after notice of the award has been
sent by mail to it at the address given in its proposal. The contract shall be made in the form
adopted by the City and incorporated in these specifications.
9. Insurance Requirements. The Contractor shall provide proof of insurance in the form,
coverage, and amounts specified in Section E of these specifications within 10 (ten) calendar
days after notice of contract award as a precondition to contract execution.
10. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business
license & tax certificate prior to execution of the contract. Additional information regarding
the City's business license & tax program can be obtained by calling (805)781-7134.
CONTRACT PERFORMANCE
11. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry
out and complete the work hereunder in compliance with any and all federal, state, county, city,
and special district laws, ordinances, and regulations.
12. Laws to be observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during performance of the work.
13. Payment of Taxes. The contract prices shall include full compensation for all taxes which the
Contractor is required to pay.
14. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges
and fees, and give all notices necessary.
15. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
16. Public and Employee Safety. Whenever the Contractor's operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the City,
furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other
devices and take such other protective measures as are necessary to prevent accidents or
damage or injury to the public and employees.
17. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is
injured or damaged as a result of the Contractor's operations, it shall be replaced or restored at
the Contractor's expense. The facilities shall be replaced or restored to a condition as good as
when the Contractor began work.
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18. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in the United
States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the work hereunder.
19. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that
it will not engage in, nor permit such subcontractors as it may employ, to engage in
discrimination in employment of persons because of age, race, color, sex, national origin or
ancestry, sexual orientation, or religion of such persons.
20. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes,
fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or
labor due to federal government restrictions arising out of defense or war programs, then the
time of completion may, at the City's sole option, be extended for such periods as may be
agreed upon by the City and the Contractor. In the event that there is insufficient time to grant
such extensions prior to the completion date of the contract, the City may, at the time of
acceptance of the work, waive liquidated damages which may have accrued for failure to
complete on time, due to any of the above, after hearing evidence as to the reasons for such
delay, and making a finding as to the causes of same.
21. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the materials, supplies, equipment, or services provided by the
Contractor (Net 30).
22. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not
relieve Contractor of any of its obligations to fulfill its contract requirements.
23. Audit. The City shall have the option of inspecting and/or auditing all records and other
written materials used by Contractor in preparing invoices to City as a condition precedent to
any payment to Contractor.
24. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall
not acquire any interest direct or indirect or otherwise, which would conflict in any manner or
degree with the performance of the work hereunder. The Contractor further covenants that, in
the performance of this work no subcontractor or person having such an interest shall be
employed. The Contractor certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that,
in the performance of the work hereunder, the Contractor shall at all times be deemed an
independent contractor and not an agent or employee of the City.
25. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect
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and hold the City and its agents, officers and employees harmless from and against any and all
claims asserted or liability established for damages or injuries to any person or property,
including injury to the Contractor's employees, agents or officers which arise from or are
connected with or are caused or claimed to be caused by the acts or omissions of the
Contractor, and its agents, officers or employees, in performing the work or services herein,
and all expenses of investigating and defending against same; provided, however, that the
Contractor's duty to indemnify and hold harmless shall not include any claims or liability
arising from the established sole negligence or willful misconduct of the City, its agents,
officers or employees.
26. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose
of the contract, or its right, title or interest, or its power to execute such a contract to any
individual or business entity of any kind without the previous written consent of the City.
27. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor
in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency. If
the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the
contract immediately by written notice to the Contractor to said effect. Thereafter, neither
party shall have any further duties, obligations, responsibilities, or rights under the contract
except, however, any and all obligations of the Contractor's surety shall remain in full force and
effect, and shall not be extinguished, reduced, or in any manner waived by the termination
thereof. In said event, the Contractor shall be entitled to the reasonable value of its services
performed from the beginning date in which the breach occurs up to the day it received the
City's Notice of Termination, minus any offset from such payment representing the City's
damages from such breach. "Reasonable value" includes fees or charges for goods or services
as of the last milestone or task satisfactorily delivered or completed by the Contractor as may
be set forth in the Agreement payment schedule; compensation for any other work, services or
goods performed or provided by the Contractor shall be based solely on the City's assessment
of the value of the work-in-progress in completing the overall workscope. The City reserves
the right to delay any such payment until completion or confirmed abandonment of the project,
as may be determined in the City's sole discretion, so as to permit a full and complete
accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess
of the compensation quoted in its proposal.
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D. SPECIAL TERMS AND CONDITIONS
1. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Proposal Submittal Form.
b. References from at least three firms for whom you have provided similar services.
c. Statement of Contract Disqualifications.
General Information
d. Description of your approach to completing the work.
e. Experience of your firm in performing similar services.
f. Warranties or guarantees that you would provide to the City regarding your
performance in completing the work.
g. Resumes of the individuals that would be assigned to this project.
h. Hourly billing rates for staff to be assigned to this project, if appropriate.
i. Proposed compensation and payment schedule.
j. Any other information that would assist us in making this contract award decision.
Proposal Length and Copies
k. Proposals should not exceed 40 pages, including attachments and supplemental
materials.
l. 10 (ten) copies of the proposal must be submitted.
2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee
based on the following criteria:
a. Understanding of the work required by the City and the TBID Board.
b. Quality and nature of proposed programs to be implemented for marketing services.
(Innovative concepts and alternative approaches are desirable.)
c. Proposer’s experience in marketing services, which may include services to tourism
agencies.
d. Recent experience in successfully performing similar services.
e. Proposed approach in completing the work.
f. References.
g. Background and related experience of the specific individuals to be assigned to this
project.
h. Proposed compensation.
As reflected above, contract award will not be based solely on price, but on a combination of
factors as determined to be in the best interest of the City and the TBID. After evaluating the
proposals and discussing them further with the finalists or the tentatively selected contractor,
the City reserves the right to further negotiate the proposed work and/or method and amount of
compensation.
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3. Proposal Review and Award Schedule. The following is an outline of the anticipated
schedule for proposal review and contract award:
Issue RFP 12/16/13
Pre-proposal conference 1/9
Receive proposals 1/31
Complete proposal evaluation 2/3-14
Conduct finalist interviews 2/24-3/7
TBID Contract Recommendation 3/12
City Council Award contract 5/6
Execute contract 5/30
4. Contract Term. The services identified in these specifications will be used by the City
between July 1, 2014 and June 30, 2016. The prices quoted for these items must be valid for
the entire period indicated above unless otherwise conditioned by the proposer in its proposal.
Upon the mutual agreement of both parties, the contract may be extended for up to an
additional two, two-year terms.
5. Contractor Invoices. The Contractor shall deliver a monthly invoice to the City, with
attached copies of work order forms and/or detail invoices. Invoices have to be accompanied
by proof of copy for all print advertising.
6. Submittal of References. Each proposer shall submit a statement of qualifications and
references on the form provided in the RFP package.
7. Statement of Contract Disqualifications. Each proposer shall submit a statement
regarding any past governmental agency bidding or contract disqualifications on the form
provided in the RFP package.
8. Ownership of Materials. All original drawings, plan documents and other materials prepared
by or in possession of the Contractor as part of the work or services under these specifications
shall become the permanent property of the City, and shall be delivered to the City upon
demand.
9. Release of Reports and Information. Any reports, information, data, or other material given
to, prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of City and shall not be made available to any individual or
organization by the Contractor without the prior written approval of the City.
10. Copies of Reports and Information. If th e City requests additional copies of reports,
drawings, specifications, or any other material in addition to what the Contractor is required to
furnish in limited quantities as part of the work or services under these specifications, the
Contractor shall provide such additional copies as are requested, and City shall compensate the
Contractor for the costs of duplicating of such copies at the Contractor's direct expense.
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of
, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
[ ], hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on December 16, 2013 City requested proposals for Marketing services for the City of San Luis
Obispo lodging industry per Specification No. 91275;
WHEREAS, pursuant to said request, Contractor submitted a proposal which was accepted by City for said
services;
NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained,
the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as
first written above, until June 30, 2016. By mutual agreement of both parties, the term of this Agreement may be extended
twice for an additional two years.
2. INCORPORATION BY REFERENCE. City Specification No. 91275 and Contractor's proposal dated
[ ], are hereby incorporated in and made a part of this Agreement.
3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and
Contractor shall receive therefore compensation in a total sum not to exceed [$650,000 for 2014-15 and [$700,000] for
2015-16.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in
Exhibit A attached hereto and incorporated into this Agreement.
5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be
in writing and shall be effective only upon approval by the Council of the City.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated
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herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding,
or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any
such oral agreement, understanding, or representation be binding upon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by
registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor [ ]
[ ]
[ ]
[ ]
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute
Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first
above written.
ATTEST: CITY OF SAN LUIS OBISPO,
A Municipal Corporation
By:
City Clerk Jan Howell Marx, Mayor
APPROVED AS TO FORM: CONTRACTOR
By:
City Attorney
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INSURANCE REQUIREMENTS: Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor,
its agents, representatives, employees, or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate
limit shall apply separately to this project/location or the general aggregate limit shall be twice the required
occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by
the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as
respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing
payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to
contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insured as respects: liability
arising out of activities performed by or on behalf of the Contractor; products and completed operations of the
Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed
by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the
City, its officers, official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects
the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by
the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and
shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not
affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,
except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended,
voided, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice
by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the
required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by
this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind
coverage on its behalf. All endorsements are to be received and approved by the City before work commences.
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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the present
business name: .
Describe fully the last three contracts performed by your firm which demonstrate your ability to provide the services
included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact
each of the references listed for additional information regarding your firm's qualifications.
Reference No. 1
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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STATEMENT OF PROPOSER'S PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been
disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project
because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties,
project delays, or disputes regarding work or product quality, and if so to explain the circumstances.
1. Do you have any disqualification as described in the above paragraph to declare?
Yes No
2. If yes, explain the circumstances.
Executed on at
I declare, under penalty of perjury of the laws of the State of California, that the foregoing is true and correct.
_________________________________________
Signature of Authorized Proposer Representative
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PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined Specification No. 91275, which is hereby
made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing
firm; and agrees to perform the specified work for the following cost quoted in full:
Description of Activity 2014-15 2015-16
TOTAL $ $
Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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blank.
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FROM: Shelly Stanwyck, Parks and Recreation Director
Prepared By: James Bremer, Recreation Supervisor
SUBJECT: BY RESOLUTION, APPROVE A LEASE AGREEMENT WITH THE SAN
LUIS OBISPO COUNTY ARTS COUNCIL FOR THE USE OF 1123 MILL
STREET OFFICE SPACE.
RECOMMENDATION
By Resolution, approve a lease agreement between the City and the San Luis Obispo County Arts
Council (SLO Arts Council), for a period of five years with a renewal option of an additional five
years, in the initial annual amount of $1,551 annually for the use of City owned property located at
1123 Mill Street and authorize the Mayor to execute the agreement.
DISCUSSION
Background
On December 13, 2011 the City entered into a lease agreement with SLO Arts Council for the use
of office space at 1123 Mill Street in San Luis Obispo. The terms of that lease of the City’s 660
square foot of office space was at the rate of $1.96 a foot or $1,294 annually. This amount was
determined from historic 2007 annual maintenance and utility costs (less janitorial services) on a
prorated basis. The agreement also contained a one year renewal option. The lease was renewed for
an additional year in 2012 and is set to expire on December 31, 2013. The tenant desires to
continue to lease the premises and the arrangement has worked out for both the City and the
community.
General Plan and Economic Development Strategy
This use of the office space by the SLO Arts Council is consistent with an office/medium density
residential use and is compliant with the Zoned Public Facility use as determined by the Community
Development department. A Public Facility designation is intended to provide for public uses and
specifies that public uses are those conducted by governmental or nonprofit agencies. The proposed
lease agreement with the SLO Arts Council is consistent with this zoning regulation.
In 2012, the Council adopted an Economic Development Strategic Plan, which includes policies to
promote and enhance the San Luis Obispo quality of life. Two of the top attributes that added to the
quality of life and that attracted and kept people in San Luis Obispo were performing and visual arts
and arts education groups. The City has approached development from a holistic perspective taking
into account how much and what type of growth can be sustained both environmentally and
economically. San Luis Obispo’s historic context, environmental setting, and cultural fabric all
drive City policy including the General Plan and specific plans. Support of non-profit agencies,
such as the SLO Arts Council is consistent with this strategy.
Meeting Date
Item Number Dec. 10, 2013
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SLO ARTS COUNCIL LEASE AGREEMENT Page 2
City Policy Regarding Leasing to Non Profits
The City's Financial Management Manual, Section 475-C (Property Management and Disposal)
provides guidance regarding the leasing of City-owned buildings and real properties as referenced
on page 475-10:
Leases of City-Owned Buildings and Real Property
The following guidelines apply to leases of City-owned buildings to outside parties.
Leases with Non-Profit Organizations
1. Requests for the long-term use of City property by non-profit organizations should
generally follow the same review procedures as the sale or lease of City property by
private for-profit entities.
2. The proposed use should be consistent with the goals and objectives of the City's
General Plan and not conflict or preclude any existing or planned City use.
3. Any development or operations directly related to the proposed use should have a clear
and measurable community benefit in alignment with City goals, policies, and plans.
4. Any lease agreements for the use of City property by non-profit organizations that
charge a less than market rate for the City property should include a provision for
community access and/or City use, or operate in close partnership in the delivery of City
services.
5. Lessees will be responsible for all property related use taxes that may be assessed.
Proposed Lease Agreement
The proposed lease agreement with the SLO Arts Council is provided as attached (Attachment 3)
and is consistent with the City’s guidelines for leases of City-owned buildings and real property.
The annual rent is proposed at a slight increase of $2.35 per square foot or $1,551 annually which
includes increased maintenance and reflects a prorated share of the annual maintenance and utility
costs (excluding janitorial service, which will not be provided) for the Ludwick Community Center.
Staff recommends an initial agreement term of five years expiring on December 31, 2018 (with an
annual Consumer Price Index (CPI) evaluation of the base rent occurring each November).
Additionally, staff recommends the agreement to have an option to renew for an additional five
years upon mutual consent of both parties. In continuing with past practice, parking spaces will not
be included with the lease amount as parking behind the Ludwick Community Center is used by
other groups renting the facility and street parking is readily available for free in the area.
FISCAL IMPACT
The proposed annual lease rate of $1,551 in year one, as discussed above, is based on a prorated
share of the annual costs to maintain the Ludwick Community Center less janitorial services. The
lease annual fee (the prorated share for maintenance and utilities based on a cost of $2.35 per
square foot) will be adjusted by the current CPI during the initial lease term. If an extension of
an additional five years occurs the square footage costs that are prorated will be recalculated
and adjusted to create a new “base” annual fee which would be then indexed annually.
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SLO ARTS COUNCIL LEASE AGREEMENT Page 3
ALTERNATIVES
1. Rent the facility to the SLO Arts Council at the full market rate. The City Council could
amend the proposed lease and approve a lease agreement at the full market rent presently
estimated to be $18,612 per year to the SLO Arts Council. This alternative is not
recommended as the building’s use continues to provide support to the community through
public art enhancement. The City Council previously determined that the proposed use by the
SLO Arts Council has a clear and measurable community benefit in alignment with City
goals.
2. Rent the Facility to the SLO Arts Council at a predetermined value. The City Council
could modify the proposed lease and approve a lease agreement with the SLO Art Council in
the amount less than the staff recommended rate of $1,551 annually. This alternative is not
recommended as the current proposal is already below market rate value. Additionally, the
SLO Arts Council has committed this level of funding for the leasing of this space.
3. Request For Proposals to All Local Non-Profits. Over the years non-profits have expressed
interest in leasing various City properties for reduced rents. The property at 1123 Mill Street
is zoned Public Facility and therefore a public agency or quasi-public agency must be the
tenant. However, Council could direct staff to issue a Request For Proposals to qualified
non-profits and offer them an opportunity to propose an appropriate rental amount for the
facility as well as modification to the zoning.
ATTACHMENTS
1. Vicinity Map
2. Resolution
3. Lease Agreement, SLO Arts Council
4. Council Agenda Report, December 13, 2011
\\chstore4\team\council agenda reports\2013\2013-12-10\slo arts council lease agreement (stanwyck-bremer)\car resolution lease agreement between city and slo arts council.docx
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Attachment 1
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R _____
RESOLUTION NO. _____ (2013 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO
APPROVING THE TERMS FOR THE LEASE OF 1123 MILL STREET WITH THE
SAN LUIS OBISPO COUNTY ARTS COUNCIL AND AUTHORIZING THE MAYOR
TO EXECUTE THE LEASE AND ALL NECESSARY SUPPORTING DOCUMENTS
WHEREAS, the San Luis Obispo County Arts Council offers support to the City’s
Public Art program and desires to lease the office space located at 1123 Mill Street; and
WHEREAS, the City of San Luis Obispo owns the commercial property located at 1123
Mill Street (adjacent to the Ludwick Community Center); and
WHEREAS, the City of San Luis Obispo has agreed to lease this space to the San Luis
Obispo County Arts Council for a period of 5 years expiring December 31, 2018; and
WHEREAS, the City has adopted policies on leasing City owned property as part of its
Property Management Manual; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo to:
SECTION 1. The City Council hereby finds as follows:
A. The San Luis Obispo Arts Council provides an important public service and
significant public benefits to the community through its labor and investments to advance the
visual, literary and performing arts through programs that promote public access to the arts,
arts in educational settings, local arts planning and collaboration, and opportunities for artists
and arts organizations.
B. The San Luis Obispo Arts Council’s purpose and programs are consistent with and
support City quality of life, cultural, civic, and economic development goals and objectives
as set forth in the City’s General Plan and Economic Development Strategic Plan.
SECTION 2. In consideration of the public benefits set forth herein, the City Council
approves the five year lease agreement between the City of San Luis Obispo and San Luis
Obispo County Arts Council and authorize the Mayor to execute the lease agreement and all
necessary supporting documentation to effectuate the lease.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
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Resolution No. _____ (2013 Series)
Page 2
The foregoing resolution was adopted this _____ day of December, 2013.
____________________________________
Mayor Jan Howell-Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
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San Luis Obispo County Arts Council Lease Agreement
Page 1
FACILITY LEASE AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
SAN LUIS OBISPO COUNTY ARTS COUNCIL FOR LEASE OF PROPERTY AT
1123 MILL STREET
This agreement entered into this _____ day of December, 2013 is made by and between the City of San Luis Obispo ("City") and The San Luis Obispo County Arts
Council (“SLO Arts Council), a non-profit California corporation.
RECITALS
WHEREAS, the City owns the premises commonly described as the Mill Street Office Space at
the Ludwick Community Center, located at 1123 Mill Street in the City of San Luis Obispo, California
("1123 Mill Street Office Space"); and
WHEREAS, the City wishes to provide to SLO Arts Council the occupancy and use of
the 1123 Mill Street Office; and
WHEREAS, 1123 Mill Street is designated as Office/Medium Density Residential in the
City’s General Plan and is Zoned Public Facility (PF); and
WHEREAS, City Property Management Manual 475-C provides guidance for the leasing of
City-owned buildings and real properties and permits the Council to evaluate proposed uses
consistent with City policy objectives on a case by case basis; and
WHEREAS, City Property Management Manual guidelines provide that the proposed use
should be consistent with the goals and objectives of the City's General Plan and not conflict or
preclude any existing or planned City Use; and
WHEREAS, at its December 10, 2013 meeting the City Council considered the request to
renew the SLO Arts Council to lease space in the City facility, and determined that the SLO Arts
Council's request should be approved, and because of the unique status and circumstances of the
SLO Arts Council and because the City Council finds that the proposed use has a clear and
measurable community benefit in alignment with City goals; and
WHEREAS, the City Council authorized the City Manager to negotiate and execute a lease
agreement with the SLO Arts Council, and
Now, therefore, the parties agree as follows:
LEASE PROVISIONS
1.Term of Agreement. The term of this agreement shall be for a period of five years.
The agreement shall begin upon execution by both parties and shall expire on December
31, 2018. By mutual written consent of both parties, the term of this agreement may be
extended for a period of up to five years.
2.Rent. For use of the approximately 660 square feet of office which is located exclusively on
the ground floor of the Mill Street side of the building and which address is 1123 Mill Street
Office ("the Premises"), Arts Obispo shall pay the City a rent of $1551.00 per year. The lease
annual fee (the prorated share for maintenance and utilities based on a cost of $2.35 per
square foot) will be adjusted by the current Consumer Price Index during the initial lease
term. If an extension of an additional five years occurs the square footage costs that are
Attachment 3
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San Luis Obispo County Arts Council Lease Agreement
Page 2
prorated will be recalculated and adjusted to create a new “base” annual fee which would be
then indexed annually.
3.Extent and Condition of the Premises. SLO Arts Council shall accept the Premises "as is".
This agreement shall not obligate the City to guarantee the condition of the Premises, the
suitability of the Premises for SLO Arts Council's intended use, the duration that the Premises
may be safely occupied, or the availability of alternate facilities. Should any occurrence (such
as fire, earthquake, flood, or the need to repair, improve, or use the Premises) necessitate
closing the Premises or a portion of the Premises to the public, Arts Obispo shall have no
recourse against the City for any loss incurred.
4.Cost of Operations. SLO Arts Council shall bear the entire cost of its operations on the
Premises, including:
A.Paying the cost of any maintenance for which SLO Arts Council is responsible;
B.Paying any taxes and fees related to its occupancy of the Premises, including all
possessory interest taxes which may be imposed.
5.Maintenance of the Premises. SLO Arts Council agrees to perform all "housekeeping
tasks" as well as any routine repairs to the premises. Housekeeping tasks shall generally
include routine emptying of wastebaskets, cleaning of windows and doors, removal and or
reporting of graffiti, sweeping of sidewalks in front of the premises, vacuuming and spot
cleaning of carpets, and cleaning of any window blinds.
6.Alterations to Building. SLO Arts Council agrees that it shall have no right to make
alterations to the building during the term of its lease.
7.Fire Inspection. A fire inspection will be completed by the City's Fire Department annually,
and more frequently if necessary. SLO Arts Council shall be responsible for complying with any
corrective notice resulting from such inspections in its portion of the premises.
8.Relationship of Parties. Under this agreement, the City shall be solely and exclusively a
lessor, and SLO Arts Council shall be solely and exclusively a lessee. SLO Arts Council shall
not be considered a partner, agent, officer, or employee of the City. SLO Arts Council's officers,
members, affiliates, volunteers, employees, and independent contractors shall not be
considered agents, officers or employees of the City.
9.Use of Facilities by Outside Parties. In recognition of the below market lease rate, SLO
Arts Council agrees:
A.To use due diligence in encouraging other non-profit groups and organizations to utilize
the facilities whenever not in use by SLO Arts Council. First consideration for use by
others will be given to local non-profit groups. Use of the facility by other groups will be
coordinated with the SLO Arts Council schedule.
B. To prepare an annual report for the City that summarizes the facility's use statistics for
the calendar year and provides an assessment of whether SLO Arts Council is allowing
public use of the facility consistent with the terms of this agreement. This report shall be
due to the City prior to December 31st of each year.
10.Operations Manager. SLO Arts Council will designate a full or part- time operations manager
who will be responsible for meeting the terms of this agreement and assuring the fullest
Attachment 3
C4 - 8
San Luis Obispo County Arts Council Lease Agreement
Page 3
community use of the facility.
11.Assignment. SLO Arts Council shall not assign this agreement to another party without the
City's prior written consent.
12.Waiver. Without affecting any other rights or remedies, Lessor and the Lessee each hereby
release and relieve the other, and waive their entire right to recover damages against the
other, for loss of or damage to its property arising out of or incident to the perils required to be
insured against herein. The effect of such releases and waivers is not limited by the amount of
insurance carried or required, or by any deductibles applicable hereto. The Parties agree to
have their respective property damage insurance carriers waive any right to subrogation
that such companies may have against Lessor or Lessee, as the case may be, so
long as the insurance is not invalidated thereby.
13.Hold Harmless and Indemnification. SLO Arts Council agrees to defend, indemnify, protect
and hold the City and its agents, officers and employees harmless from and against any and all
claims asserted or liability established for damages or injuries to any person or property,
including injury to the Lessee’s employees, agents or officers which arise from or are
connected with or are caused or claimed to be caused by the acts or omissions of the Lessee,
and its agents, officers or employees, arising from or related to the use or occupation of the
Premises under this Agreement, and all expenses of investigating and defending against same;
provided, however, that the Lessee's duty to indemnify and hold harmless shall not include any
claims or liability arising from the established sole negligence or willful misconduct of the City,
its agents, officers or employees. Without limitation, from and after the date of execution of this
Agreement, the SLO Arts Council shall also indemnify and defend City, using counsel
approved by City in its absolute discretion, from any and all third party challenges to this
Agreement or any related entitlement or approval contemplated hereunder.
14.Insurance. SLO Arts Council shall procure and maintain for the duration of the contract
insurance against claims for injuries to persons or damages to property that may arise from
or in connection with the use or occupation of the Premises hereunder by SLO Arts Council,
its agents, representatives, employees, or sub-contractors as defined in Exhibit 1.
15.Termination. If the City determines that SLO Arts Council is not faithfully abiding by any
term or condition of this agreement, the City may send written notification giving SLO Arts
Council a 15-calendar day notice to cure the deficiency. If SLO Arts Council has not cured
the deficiency within the 15 days specified in the notice, that failure shall constitute a breach
of the agreement, and the City may give written notice to terminate the agreement effective
30 calendar days from receipt of the notice.
If the City determines that it needs to use the property at 1123 Mill Street for municipal
government purposes, the City may give written notice to SLO Arts Council to terminate the
agreement effective 30 calendar days from receipt of the notice.
16.Cooperation upon Termination or Expiration. In the event of termination or expiration,
SLO Arts Council shall fully cooperate by relocating its operations before the termination or
expiration date and by entering into this Agreement waives any claim or right to relocation
assistance from the City. By midnight on the termination or expiration date SLO Arts
Council shall remove from the Premises all property in its possession or custody and shall
leave the Premises in a condition as good as when received, excepting normal wear and
tear. Any property remaining on the Premises after the termination or expiration date shall
be deemed abandoned and shall become the property of the City of San Luis Obispo. The
Lessee has no right to retain possession of the Premises or any part thereof beyond the
Attachment 3
C4 - 9
San Luis Obispo County Arts Council Lease Agreement
Page 4
expiration or termination of this Lease. In the event that Lessee holds over, then the rent
hereunder shall be increased to 150% of rent specified herein applicable immediately
preceding the expiration or termination. Nothing contained herein shall be construed as
consent by Lessor to any holding over by Lessee.
17.Notices. All official notices required under this agreement shall be given in writing and
submitted by certified mail, postage prepaid and addressed as follows:
City:City Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Lessee:San Luis Obispo County Arts Council
Executive Director
P.O. Box 1710
San Luis Obispo, CA 93406
18.Enforcement Costs and Attorney's Fees. The prevailing party in any action between the
parties to this agreement brought to enforce the terms of this agreement may recover from
the other party its reasonable costs and attorney's fees in connection with such an action.
19.Entirety and Integrity of Agreement. This document represents the entire and integrated
agreement between the City and SLO Arts Council. This document supersedes and negates
all prior negotiations, representations, agreements, and amendments, either written or oral,
regarding the Premises and the operation of a community performing arts theater on the
Premises. This document may be amended only by written instrument executed by both the
City and SLO Arts Council. All provisions of this agreement are expressly made conditions.
This agreement shall be governed by the laws of the State of California and any action
hereunder shall be venued in the San Luis Obispo Superior Court in the City of San Luis
Obispo, California.
This agreement is executed by the following authorized representatives:
ATTEST: CITY OF SAN LUIS OBISPO,
A Municipal Corporation
__________________________ _____________________________
Anthony J. Mejia, City Clerk Jan Howell Marx, Mayor
APPROVE AS TO FORM: SAN LUIS OBISPO ARTS COUNCIL
_____________________________ _____________________________
J. Christine Dietrick, City Attorney Executive Director
Attachment 3
C4 - 10
Page 5
Exhibit 1 Insurance Requirements
1.SLO Arts Council's personal property, fixtures, equipment, inventory and vehicles are not insured by the City
against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any
other cause. SLO Arts Council is to carry its own property insurance to protect it from any such loss.
2.In addition, SLO Arts Council will carry liability insurance in an amount of not less than $1,000,000.00.
SLO Arts Council's liability insurance shall name the City and the City's agents as additional insured.
3.SLO Arts Council prior to occupancy of the premises shall provide a certificate of insurance establishing
SLO Arts Council's compliance with this insurance requirement. The City shall maintain liability
insurance insuring the City, but not the SLO Arts Council in an amount sufficient to cover the
replacement of the premises.
4.SLO Arts Council is advised to carry business interruption insurance in an amount sufficient to cover its
rental obligation to the City.
5.Both the City and SLO Arts Council's release each other and waive their respective rights to subrogation
against each other, for loss or damage covered by insurance.
Attachment 3
C4 - 11
councIl
aq€nba R€PORt
CITY OF SAN LUIS OBISPO
FROM: Shelly Stanwyck, Parks and Recreation Director
Meeting Oat"
12/13/] 1
SUBJECT: LEASE OF 1123 MILL STREET BY SAN LUIS OBISPO COUNTY ARTS
COUNCIL
RECOMMENDATION
Give staff direction to finalize the negotiations of a lease agreement for 1123 Mill Street by San
Luis Obispo County Arts Council in the amount of $1,294 for one year and authorize the City
Manager to execute the finalized agreement subject to approval by the City Attorney and receipt by
the tenant of a use permit.
DISCUSSION
Background
As part of the City's 2011-13 Financial Plan, the Parks and Recreation Department proposed
leasing a portion of the Ludwick Community Center (LCC), 660 square feet of office space
referred to as 1123 Mill Street (Attachments 1), for lease as a revenue enhancement of
approximately $11,000 per year.
On November 28, 2011 the City received and distributed to Council the attached letter
(Attachment 2) froin San Luis Obispo County Arts Council. San Luis Obispo County Arts Council
is a Countywide Arts Council that supports the visual, literary, and performing arts community
of San Luis Obispo County. The organization in the past has provided input and support to the
City's Public Art Coordinator on public art projects. At this time, San Luis Obispo County Arts
Council is asking to lease the portion of 1123 Mill Street presently offered for lease by the City
for $1,294 per year. This amount reflects the prorata share of maintenance costs for the 660
square-foot office at the LCC.
Direction by Mayor to Place Item on Agenda
In accordance with Council Policies and Procedures the Mayor can direct staff to place items on
future Agendas. On December 2, the Mayor directed staff to place an item on the December 13,
2011 agenda regarding a lease with San Luis Obispo County Arts Council for 1123 Mill Street for
Council's consideration.
City Policy Regarding Leasing to Non Profits
The City's Property Management Manual, Section 475-C (Property Management and Disposal)
provides guidance regarding the leasing of City-owned buildings and real properties. It states
specifically at page 475-10:
B3-1 C4 - 12
Approval of Lease of 1123 Mill Street
LEASES OF CITY-OWNED BUILDINGS AND REAL PROPERTY
The following guidelines apply to leases of City-owned buildings to outside
parties.
Leases with Non-Profit Organizations
Page 2
I. Requestsfor the long-term use of City property by non-profit organizations
should generally follow the same review procedures as the sale or lease of City
property by private for-profit entities.
2. The proposed use should be consistent with the goals and objectives of the
City's General Plan and not conflict or preclude any existing or planned City
use.
3. Any development or operations directly related to the proposed use should
have a clear and measurable community benefit in alignment with City goals,
policies, and plans.
4. Any lease agreements for the use of City property by non-profit organizations
that charge a less than market rate for the City property should include a
provision for community access and/or City use, or operate in close partnership
in the delivery of City services.
5. Lessees will be responsible for all property related use taxes that may be
assessed
Because the City "disposes" of property infrequently the most appropriate process will vary in
each case depending on the circumstances. The guidelines in the Real Property Management
manual state that they are "intended to provide the City with a framework for assessing the best
approach on a case-by-case basis. It is not intended to limit the approaches available to the
City: the overarching principle that should always apply is using an approach that will best
accomplish the City's objectives given the circumstances at the time." There are five basic
approaches that the City usually takes: request for proposals, broker services, exclusive
negotiations, competitive sealed bids or auction (or a combination of these approaches), which
are determined by the Council on a case-by-case basis depending on the circumstances.
Ultimately the most appropriate course of action is a policy decision of the City Council.
Proposed Lease Terms
Should Council wish to enter into a lease with SLO Art Council, a draft Facility Lease for a term
of one year with a one year option to extend is attached (Attachment 4). The amount of rent
proposed is $1,294. That amount is reflective of the annual maintenance and utility costs
(excluding janitorial services, which will not be provided) for this space under consideration at
the LCe. Those costs are $29,812 per year or approximately $1.96 per square foot. The prorata
share for 1123 Mill Street (660 square feet) would be $1,294 per year. San Luis Obispo County
Arts Council would be responsible for all janitorial services in the leased premises. Parking was
not included in the rent amount sought as the parking behind the LCC is often used by large
groups renting the LCC and street parking is readily available for free in the area. An equivalent
parking spot in a long term metered space or lesser used parking structure would cost
approximately $480 to $720 a year. Upon receipt by San Luis Obispo Arts Council of a use permit
B3-2 C4 - 13
Approval of Lease of 1123 Mill Street Page 3
and approval by the City Attorney of the proposed agreement, the City Manager (if authorized by
Council tonight) would execute the final facility lease agreement.
General Plan Consistency Determination & Administrative Use Permit
The property is designated Office/Medium Density Residential in the General Plan and is Zoned
Public Facility (PF). The property has a split land use designation, with the frontage facing
Santa Rosa Street designated Office. Community Development staff has made a preliminary
determination that the proposed use is consistent with the intent of General Plan policies.
Attachment 5 includes relevant General Plan policies for the General Plan designation of Office.
Public Facility (PF) Zone
The property at 1123 Mill Street is zoned PF. Community Development staff have reviewed San
Luis Obispo County Arts Council's correspondence and have preliminarily concluded that it
qualifies as a government office, and is therefore a conditionally allowed use in the PF zone. In
making the determination, staff reviewed the State designation of San Luis Obispo County Arts
Council as the Local Arts Planning Agency and its partnership with the County per Board of
Supervisor's resolution. Typically, non-profit general offices are not allowed in the PF zone
unless they qualifY as a "Government Office" and perform quasi-governmental services.
Government offices are the only type of offices allowed in the PF zone, subject to prior approval
of an Administrative Use Permit. If the City Council authorizes negotiation and execution of a
lease for 1123 Mill Street, it would be subject to the condition that the San Luis Obispo County
Arts Council obtains the requisite use permit. If a use permit application is approved through the
City's normal review processes, the lease with the Arts Council can be executed allowing the
Arts Council to occupy the space.
San Luis Obispo County Arts Council as a Government Office
The designation of San Luis Obispo County Arts Council as a "government office" is unique, but
based on legislative acts and designations by state and county bodies. The San Luis Obispo
County Arts Council has been designated by the County Board of Supervisors and the State of
California as the Local Arts Planning Agencyl under the State-Local Partnership Program2
designed to encourage local cultural planning (see Attachment 3). It is this unique and officially
designated collaboration with the County and State Legislature that qualifies the Arts Council as
a government office. The purpose statement of the PF zone reads, that the "P F zone is intended
to provide for public uses and that public uses are those conducted by governmental or nonprofit
agencies3 ." Non-profits that receive State or local funding only would not qualifY under this
determination unless they carry out quasi-governmental functions. Staff does not believe this
1 A local arts agency is a nonprofit organization, or agency of city or county government, officially designated to provide
financial support, services, andlor other programs to a variety of arts organizations.,
2 The State-Local Partnership Program fosters cultural development on the local level through a partnership between the
California Arts Council and the designated local arts agency' of each county. This partnership includes funding,
cooperative activities, infonnation exchange, and leadership enabling individuals, organizations, and communities to
create, present, and preserve the arts of all cultures to enrich the quality of life for all Californians.
3 17.36.010 Purpose and application.
B3-3 C4 - 14
Approval of Lease of 1123 Mill Street Page 4
determination sets a precedent because of the circumstances unique to the San Luis Obispo
County Arts Council.
FISCAL IMPACT
The approximately 660 square feet of office at 1123 Mill Street was proposed as a revenue
enhancement and "budget balancer" in the 2011-13 Financial Plan by the Parks and Recreation
Department. Revenues were projected at $11,000 per year from 1123 Mill Street in each year of
the 2011-13 Financial Plan. The fiscal impact of this lease at below market rent is $9,706 in lost
revenues annually. As a point of information the property was marketed for lease at a Market
Rate of $1.75 per square foot or $13,860 annually, which represented rent as well as the added
maintenance and utilities costs projected from this use (since the facility is not separately
metered).
ALTERNATIVES
1. Full Market Rent to the San Luis Obispo Connty Arts Council. Council could
modify the proposed lease and approve a lease agreement with San Luis Obispo County
Arts Council at full market rent or approximately $13,860 per year consistent with the
market rate the property was listed for rent.
2. $1.00 per Year. Council could modify the proposed lease and approve a lease agreement
with San Luis Obispo County Arts Council in the amount of $1.00 per year.
3. Request For Proposals to All Local Non-Profits. Over the years many nonprofits have
expressed interest in leasing various City properties for reduced rents. No nonprofits
were contacted when staff "listed" 1123 Mill Street for lease because the property was
proposed to be leased for added revenues, it is zone Public Facility and therefore a public
agency or quasi-public agency must be the tenant. However, Council could direct staff to
issue a RFP to qualified Non-Profits and offer them an opportunity to propose an
appropriate rental amount for the facility as well as modification to the zoning.
4. Continue to Seek a Tenant at Market Rate. If San Luis Obispo County Arts Council
does not want to pay Market Rent, and Council desires that the property be leased at the
current market rate, Council could direct staff to not lease to San Luis Obispo County Arts
Council and continue to seek an appropriate Tenant for market rent.
ATTACHMENTS
1. "For Lease Flyer"
2. Letter of Interest from San Luis Obispo County Arts Council
3. Board of Supervisors Resolution 2011-127
4. Proposed Lease Agreement
5. General Plan Policies
T:\Council Agenda Reports\Parks & Recreation CAR\2011 P&R CARs\ Arts Obispo Lease 1123 Mill CAR
B3-4 C4 - 15
ATTACHMENT j
IIIIIP.I city o~
</.& san lUIS OBISpO
paRks anb R€CR€atlOn b€paRtm€nt
Premier downtown location. Close to government buildings, restaurants and shopping.
Suite size 660 Sq. Ft. with two offices, conference room, kitchenette, restrooms and fiber optic service.
Call for more details.
Corner of Mill and Santa Rosa Street adjacent to the Ludwick Community Center.
Total Space Available:
660 SF Rental Rate: $1.75/SF/Year Min.
Type: Public Facility, Sub·type: Office Building
Parcel info 002·325·001
Zoning PF
Last Verified 8/30/2011
Contact: James Bremer
(805) 781-7295
jbremer@slocity.org
1 Space Available Display Rental Rate
$1.75/SF/Year
$13860.00 Amt/Year
$1155.00 Amt{Month
Space Available: 660 SF Rental Rate: ($1.75) /SF/Month
Space Type: Office Building Lease Type: /SF/Month
$1155.00 {YearS 13860.00
Parking Spaces subject to negotiation
B3-5 C4 - 16
ARTS
OBISPO
Son LU;5 Obhpo County
Arts CouncH
PH Box 1710
San Luis Obispo, CA
93406
Phone: (80S) 544··9251
Fax: (805) 544-1522
office@artsobispo.org
Wv.-v.'.artsobispo.otg
Board of DirectoJ'$
Mary Kay J-Iarrirtgton
President
Julie frankel
'vice~Prt'!>idem
Jane Voigts
Secretary
JanoKray
TtL"a!!Urer
Gordon Fuglie
CrisS;l. Hewitt
Richard Mortensen
Kathleen Waddell
J!lflct Wallace
H(j1/orary
.\nnRo;.'llm
Staff
Charlotte Alexander
fixl'mliiJ: Dire.1or
Jennll Hartr.cll
Pro,x,mm [)ir?dor
Ba-rbarJ. Radm;ch
ArU in F..d"adWn Coardin4lor
November 23, 2011
To the members of the San Luis Obispo City Council:
The San Luis Obispo County Arts Council, also known as ARTS Obispo,
is seeking approval to lease office space owned by the City of San Luis
Obispo at 1123 Mill Street in downtownSan Luis Obispo.
At this time we understand from City staff that the zoning of the property
allows for our organization's occupancy and use of the site. Assuming we
receive approval to lease the space, we are asking for consideration of a
reduction in the advertised rental rate, perhaps similar to that received by
other City cultural partners, including the San Luis Obispo Museum of Art.
It was determined less than a month ago that we must leave our current
office/gallery space in the Creamery in downtown San Luis Obispo no later
than December 31,2011. We have been actively seeking alternative space
since then, so expedited consideration of this request would be greatly
appreciated. We put the word out to our extensive network of creative
people that we are in need of approximately 600 sq. ft. of office space
(donated if possible), and the availability of 1123 Mill Street was brought to
our attention. Please note that we are NOT seeking gallery space at this
time -only general office space to house edministrative and program staff.
This property seems ideal in terms of size, facilities, and location in the
downtown area of the County seat.
The San Luis Obispo County Arts Council has long partnered with the City
of San Luis Obispo to advance the arts, including the very popular Art After
Dark and Open Studios Art Tour, as well as the collaborative Art in Public
Places program. We contribute to the richness of the City's cultural
activities as well, helping to bring tourist dollars into the community.
We are a 501 (c)3 not-for-profit public benefit organization dedicated to
advancing the visual, literary and performing arts in San Luis Obispo
County, specifically in the areas of arts in education, public access to the
arts and opportunities for artists. The County of San Luis Obispo has
designated us as the County's Local Arts Planning Agency for the purpose
of acting as a comprehensive community arts organization. We act in
partnership with the California Arts Council to foster cultural development
on the local level through funding, cooperative activities, information
exchange, and leadership -enabling individuals, organizations, and
communities to create, present, and preserve the arts of all cultures to
enrich the quality of life for residents and visitors.
As we begin celebrating 30 years of service to San Luis Obispo County in
2012, the Board of Directors of the Arts Council is re-visiting our vision and
mission statements. With an emphasis on collaboration and partnership,
the Board is looking to create a sustainable operating model in 2012 and
develop a long-term strategic plan to better serve the needs of the visual,
literary and performing arts community. Please consider partnering with us
to make that happen in 2012 and beyond.
Sincerely, . // . ~ /
-/ltUt7f/~~~J~C
Mary K H~, President
Board f Directors
cc: Katie Uchtig, City Manager
Advancing the Arts in San Luis Obispo County
ATTACHMENT 2
B3-6 C4 - 17
IN THE BOARD OF SUPERVISORS
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
Tuesday May 3 2011
PRESENT: Supervisors Frank Mecham, Bruce S. Gibson, Paul A. Teixeira, James
R. Patteraon and Chairperson Adam Hill
ABSENT: None
RESOLUTION NO. 2011-127
RESOLUTION OF THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN LUIS OBISPO
APPROVING PARTICIPATION IN THE 2011-12
STATE·LOCAL PARTNERSHIP PROGRAM
DESIGNAnNG THE LOCAL ARTS PLANNING AGENCY
AND APPROVING AND AUTHORIZING EXECUTION OF A
GRANT CONTRACT WITH THE CALIFORNIA ARTS COUNCIL
The following resolution is now offered and read:
WHEREAS, the Caldornia Arts Council and the California Legislature have
established a State-Local Partnership Program (the "Program") designed to encourage
local cultural planning and decisjon~makjng and to reach previously underserved
constituencies; and
WHEREAS, the State-Lo.cal Partnership Program requires a mandatory match, at a
level of 1: 1, which may be from either public or private sources; and
WHEREAS, pursuant to the 1980-81 Program Guidelines, the Board of Supervisors
of the County of San Luis Obispo (the "Board of Supervisors") designated the San Luis
Obispo County Arts Council as the Local Arts Planning Agency under the Program for the
purpose of acting as a comprehensive community arts organization; and
WHEREAS, said plan was finalized by Board Resolution No. 84-113 and approved
by the State of California; and
WHEREAS, the Board of Supervisors and the San Luis Obispo County Arts Council
(together defined as the "Local Partner") are now eligible to apply for and receive a grant
for continued planning and input from interested citizens in local arts program activities.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, by the Board of
Supervisors of the County of San Luis Obispo, Slate of Caldornia as follows:
Section 1: The Board of Supervisors hereby approves participation by the Local
Partner designated for 2011-12 as itself and the San Luis Obispo County Arts Council, in
the 2010-2011 State-Local Partnership Program.
Section 2: The Board of Supervisors hereby authorizes and directs the Arts Council
Administrator, San Luis Obispo County Arts Council, to execute the Grant Contract on
behalf of the Local Partnership and submit said contract to the State-Local Partnership
. Program Grant Review and Advisory Panel.
Section 3: During the County's annual budget hearings, the Board of Supervisors
may consider funding for the San LuiS Obispo Arts Council in an amount up to $41,000 or
on an equal match basis.
B3-7 C4 - 18
Upon motion of Supervisor ...,M"e"'c"'h"'am"'--__________ , seconded by
Supervisor Gibson , and on the following roll call vote, to wit:
AYES: Supervisors Mecham, Gibson, Teixeira, Patterson and Chairperson Hill
NOES: None
ABSENT: None
ABSTAINING: None
the foregoing resolution is hereby adopted.
Chairman of the Board of Supervisors
ATTEST:
Julie L. Rodewald
Clerk of the Board of Supervisors
By ~lt~ DePUtYefk
APPROVED AS TO FORM AND LEGAL EFFECT:
WARREN R. JENSEN
County Counsel
By: Is/Rita L. Nea'
Assistant County Counsel
Date: 4120/2011
,.,_ ............... m."~~ .. H ........ ,~ •• __ •••••• M ••• H ..... M~n.............. . ...... M ............ M .... " ............ ,
i STATE OF CAUFORNIA) 55,
! COUNTY Of SAN lUIS OBISPO ! I, JULIE L. RODEWALD. County Clerk of the above entitled
1 County, and Ex..()fflclo Clerk of the Board of Supervisors
j thereof, do hereby certify the foregoing to be a full, true
! and correct copy of an order entered in the minutes of said I Board of Supervisors, and now remaining of record in my
. office.
1 Wltne~s, my hand and seal of said Board of Supervisors this
! 4th day of May I 2011. I JULIE l. RODEWALD. County Clerk and Ex-Officio Clerk of the
Board of Supervisors
By: 9nntt~ t"l~~
L ..... n~ .... _ .... H''' ... ''.'H ... =~m_ .. ~:'~,~_ ..... ~ .... __ .n.n_ .... _,. .. H.".HN ....... ~..!
B3-8 C4 - 19
ATTACHMENT 4
DRAFT FACILITY LEASE AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
SAN LUIS OBISPO COUNTY ARTS COUNCIL SAN LUIS OBISPO COUNTY ARTS COUNCIL
FOR LEASE OF PROPERTY AT
1123 MILL STREET
This agreement entered into this day of , 2011 is made
by and between the City of San Luis Obispo ("the City") and The San Luis Obispo County Arts
Council, a non-profit California corporation"
WHEREAS, the City owns the premiSeSG~~W;OnIY des~;i~~~ias the Mill Street Office
Space at the Ludwick Community Center, loc~lteilijat 1123 Mill StreEHiJ"l.t~e City of San Luis
Obispo, California ("1123 Mill Street Office SpaG~"); and ""
WHEREAS, the City wishes to provide to SanLl.li~nDbispo County Arts Council the
occupancy and use of the 1123 Mill StneetOffice; and
;;. , ,.
WHEREAS, 1123 Mill Street is d~~ignat~cfiOffice/Medium Density Residential in the
General Plan and is ZonedJluI~lic FacilityWf); and'; <fifi
WHEREAS, citYil~r:operty;Mflmageme~tiiM~WJ~jl ~~~~miProvides guidance for the leasing
of City-owned buildingsandi,real pr<'jperties andH~~rmits the Council to evaluate proposed uses
consistent with City policy d~~~ti\(e~i:0,lljgcase 6~IQilSe basis; and "
;;lill! :;~T· lllHllilWJJ!:Hlliw:;", ill;L WHlijmWA~:,i8itY'pr~pert~i~~/lage~~\'iiM~~1l~1 guidelines provide that the proposed use
should be (lo'nsistent with"thegoals B'l11d. objectives of the City's General Plan and not conflict or
preclude anye)(i~ting or planned CityWse; and
WHEREAS',at its December 13, 2011 meeting the City Council considered the request
of the San Luis Obisp(li~rts Couliil:;tI to lease space in the City facility, and determined that the
San Luis Obispo Arts C~1Uncil'sJ~qllest should be approved, subject to approval of an
Administrative Use Permit;:6eQalirse of the unique status and circumstances of the San Luis
Obispo Arts Council and because the City Council finds that the proposed use has a clear and
measurable community benefit in alignment with City goals; and
WHEREAS, the City Council authorized the City Manager to negotiate and execute a
lease agreement with the San Luis Obispo Arts Council, subject the Arts Council applying for
and obtaining and Administrative Use Permit, and subject to final lease approval by the City
Attorney; and
WHEREAS, the San Luis Obispo Arts Council has submitted an application for and
received approval of an Administrative Use Permit for its proposes use of the City facility; and
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ATTACHMENT 4
Arts Obispo New Lease Agreement Page 2
WHEREAS, the Community Development Director has determined that the proposed
use is consistent with the City's General Plan; and
WHEREAS, the Community Development Director has determined that the proposed use
is consistent with Section 17.36.010 of the City of San Luis Obispo Municipal Code.
Now, therefore, the parties agree as follows:
LEASE PROVISIONS
1. Term of Agreement. The term of this agreement shall start upon execution by both
parties and expire on Dece·mber 31,2012. By mutual written consent of both parties, the
term of this agreement may be extended a period of one year.
2. Rent. For use of the approximately 660 square feet of office which is located exclusively
on the ground floor of the Mill Street side of the building and which address is 1123 Mill
Street Office ("the Premises"), Arts Obispo shall pay the City a rent fixed at $1,294 per
year (the prorate share for maintenance and utilities based on a cost of $1.96 per square
foot) for the lease term.
3. Extent and Condition of the Premises. San Luis Obispo County Arts Council shall
accept the Premises "as is". This agreement shall not obligate the City to guarantee the
condition of the Premises, the suitability of the Premises for San Luis Obispo County Arts
Council's intended use, the duration that the Premises may be safely occupied, or the
availability of alternate facilities. Should any occurrence (such as fire, earthquake, flood,
or the need to repair, improve, or use the Premises) necessitate closing the Premises or·
a portion of the Premises to the public, Arts Obispo shall have no recourse against the
City for any loss incurred.
4. Cost of Operations. San Luis Obispo County Arts Council shall bear the entire cost of
its operations on the Premises, including:
A. paying the cost of any maintenance for which San Luis Obispo County Arts
Council is responsible;
B. paying any taxes and fees related to its occupancy of the Premises, including all
possessory interest taxes which may be imposed.
5. Maintenance of the Premises. San Luis Obispo County Arts Council agrees to perform
all "housekeeping tasks" as well as any routine repairs to the premises. Housekeeping
tasks shall generally include routine emptying of wastebaskets, cleaning of windows and·
doors, removal and or reporting of graffiti, sweeping of sidewalks in front of the premises,
vacuuming and spot cleaning of carpets, and cleaning of any window blinds.
B3-10 C4 - 21
Arts Obispo New Lease Agreement p~V~~HMENT 4
6. Alterations to Building. San Luis Obispo County Arts Council agrees that shall have no
right to make alterations to the building during the term of its lease.
7. Fire Inspection. A fire inspection will be completed by the City's Fire Department at
least annually, and more frequently if necessary. San Luis Obispo County Arts Council
shall be responsible for complying with any corrective notice resulting from such
inspections in its portion of the premises.
8. Relationship of Parties. Under this agreement, the City shall be solely and exclusively
a lessor, and San Luis Obispo County Arts Council shall be solely and exclusively a
lessee. San Luis Obispo County Arts Council shall not be considered a partner, agent,
officer, or employee of the City. San Luis Obispo County Arts Council's officers,
members, affiliates, volunteers, employees, and independent contractors shall not be
considered agents, officers or employees of the City.
9. Use of Facilities by Outside Parties. In recognition of the below market lease rate,
San Luis Obispo County Arts Council agrees:
A. To use due diligence in encouraging other groups and organizations to utilize the
facilities whenever not in use by San Luis Obispo County Arts Council. First
consideration for use by others will be given to local non-profit groups. Use of the
facility by other groups will be coordinated with the San Luis Obispo County Arts
Council schedule.
B. To prepare an annual report for the City that summarizes the facility's use
statistics for the calendar year and provides an assessment of whether San Luis
Obispo County Arts Council is allowing public use of the facility consistent with the
terms of this agreement.
10. Operations Manager. San Luis Obispo County Arts Council will designate a full or part-
time operations manager who will be responsible for meeting the terms of this agreement
and assuring the fullest community use of the facility.
11. Assignment. San Luis Obispo County Arts Council shall not assign this agreement to
another party without the City's prior written consent.
12. Subrogation Waiver. The City and San Luis Obispo County Arts Council release and
relieve each other and waive their entire rights of recovery against each other for damage from
perils covered by their property insurance, whether due to the negligence of the City, San Luis
Obispo County Arts CounCil, their agents, their officers, their employees, or their guests.
13. Hold Harmless and Indemnification. San Luis Obispo County Arts Council agrees to
defend, indemnify, protect and hold the City and its agents, officers and employees
harmless from and against any and all claims asserted or liability established for damages
or injuries to any person or property, including injury to the Contractor's employees, agents
or officers which arise from
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ATTACHMENT 4
Arts Obispo New Lease Agreement Page 4
or are connected with or are caused or claimed to be caused by the acts or omissions of
the Contractor, and its agents, officers or employees, in performing the work or services
herein, and all expenses of investigating and defending against same; provided, however,
that the Contractor's duty to indemnify and hold harmless shall not include any claims or
liability arising from the established sole negligence or willful misconduct of the City, its
agents, officers or employees. Without limitation, from and after the date of execution of
this Agreement, the San Luis Obispo Arts Council shall also indemnify and defend City,
using counsel approved by City in its absolute discretion, from any and all third party
challenges to this Agreement or any related entitlement or approval contemplated
hereunder.
14. Insurance. San Luis Obispo County Arts Council shall procure and maintain for the
duration of the contract insurance against claims for injuries to persons or damages to
property that may arise from or in connection with the performance of the work
hereunder by San Luis Obispo County Arts Council, its agents, representatives,
employees, or sub-contractors as defined in Exhibit 1.
15. Termination. If the City determines that San Luis Obispo County Arts Council is not
faithfully abiding by any term or condition of this agreement, the City may send written
notification giving San Luis Obispo County Arts Council a 15-calendar day notice to cure
the deficiency. If San Luis Obispo County Arts Council has not cured the deficiency
within the 30 days specified in the notice, that failure shall constitute a breach of the
agreement, and the City may give written notice to terminate the agreement effective 30
calendar days from receipt of the notice.
If the City determines that it needs to use the property at 1123 Mill Street for municipal
government purposes (such as civic center expansion), the City may give written notice
to San Luis Obispo County Arts Council to terminate the agreement effective 30 calendar
days from receipt of the notice.
16. Cooperation upon Termination or Expiration. In the event of termination or
expiration, San Luis Obispo County Arts Council shall fully cooperate by relocating its
operations before the termination or expiration date and by not seeking relocation
assistance from the City. By midnight on the termination or expiration date San Luis
Obispo County Arts Council shall remove from the Premises all property in its possession
or custody and shall leave the Premises in a condition as good as when received, .
excepting normal wear and tear. Any property remaining on the Premises after the
termination or expiration date shall be deemed abandoned.
17. Notices. All official notices required under this agreement shall be given in writing and
submitted by certified mail, postage prepaid and addressed as follows:
To the City: City Administrator
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
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Arts Obispo New Lease Agreement
To San Luis Obispo County Arts Council: President
San Luis Obispo County Arts Council
P.O. Box 1710
San Luis Obispo, CA 93406
ATTACHMENT 4
Page 5
18. Enforcement Costs and Attorney's Fees. The prevailing party in any action between
the parties to this agreement brought to enforce the terms of this agreement may recover
from the other party its reasonable costs and attorney's fees in connection with such an
action.
19. Entirety and Integrity of Agreement. This document represents the entire and
integrated agreement between the City and San Luis Obispo County Arts Council. This
document supercedes and negates all prior negotiations, representations, agreements,
and amendments, either written or oral, regarding the Premises and the operation of a
community performing arts theater on the Premises. This document may be amended
only by written instrument executed by both the City and San Luis Obispo County Arts
Council. All provisions of this agreement are expressly made conditions. This
agreement shall be governed by the laws of the State of California.
This agreement is executed by the following authorized representatives:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
CITY OF SAN LUIS OBISPO,
A Municipal Corporation
Katie Lichtig, City Manager
SAN LUIS OBISPO COUNTY ARTS COUNCIL
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Attachment S
The following General Plan policies provide specific guidance on use of properties related to
quasi-governmental and art facilities for properties designated in the General Plan as Office.
3.4 Offices
3.4.1 Purpose and Included Uses
The City should have sufficient land for Office development to meet the demands of City residents
and the specialized needs of County residents. Office development inc Iud e s professional
and fin a n cia I s e r vic e s (such as doc tor s, architects, and insurance companies and banks)
and government agencies. The City should retain the regional offices of state and federal agencies. Not
all types of offices are appropriate in all locations. (See office location policies below. Also see the
Public Facilities section).
3.4.2 Office Locations
A. All types of offices are appropriate in the downtown General Retail district, but are discouraged
at street level in storefronts of the commercial core.
B. All types of office activities are appropriate in the Office district which surrounds the
downtown commercial area, though offices needing very large buildings or generating substantial
traffic may not be appropriate in the area which provides a transition to residential neighborhoods.
C. Medical services should be near the hospitals, and may also be located in other
commercial areas of the City.
D. Government social services and the regional offices of state and federal agencies
should be near the intersections of South Higuera Street, Prado Road, and Highway 101
(Figure 5);
E. Offices having no substantial public visitation or need for access to downtown government
services may be in Services and Manufacturing districts.
F. Certain bus i n e s s and professional services having no substantial public visitation or
limited need for access to downtown government services may be in Services and Manufacturing
districts. Examples of such uses are computer services, utilities engineering and administration,
architects and engineers, industrial design, advertising, building contractors, labor and
fraternal organizations, veterinarians, and insurance and financial services that do not directly
serve retail customers,
G. Certain business and professional services with limited need for access to downtown
g:MiITlTfft services may be located in areas that are away from the downtown, and designated
Community Commercial. Appropriate types of offices inc Iud e those that provide direct
"over-the-counter" services to customers and clients, Professional offices may also be
appropriate, particularly above the ground floor.
5.1.9 Different Offices
Government and private activities of types not listed in policies 5,1.4, 5.1,5, and 5.1,6 may be established
in these identified areas, so long as they are compatible with and do not displace the government
functions which should be located in the area
5.2.1 Cooperation
The City should cooperate with other agencies and with community groups to help provide facilities for a
library, and for arts and sciences which meet broad community cultural needs,
5.5 Community Arts Support
The City will continue to support community arts programs through a variety of means, such as loans,
grants, and help in obtaining sites.
B3-14 C4 - 25
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FROM: Derek Johnson, Community Development Director
Prepared By: Brian Leveille, Associate Planner
SUBJECT: RECOMMENDATION TO ADD THE CONTRIBUTING HISTORIC
PROPERTY LOCATED AT 1144 BUCHON STREET TO THE
MASTER LIST OF HISTORIC RESOURCES.
RECOMMENDATION:
As recommended by the Cultural Heritage Committee (CHC), adopt a resolution adding the
property located at 1144 Buchon Street to the Master List of Historic Resources.
DISCUSSION
Previous Review
On November 26, 2012, the CHC reviewed the applicant’s request to add the property located at
1144 Buchon Street to the Master List of Historic Resources. Historic listing requires nomination
by the Cultural Heritage Committee (CHC), and City Council approval. The property is currently
listed as a Contributing Historic Resource. The CHC continued the item requesting additional
information regarding the original owner and his contributions to the downtown business
community in the early 20th Century.
On September 23, 2013, the CHC
reviewed additional information
provided in an addendum to the
Historic Resource Evaluation from
the CHC’s initial review (Attachment
2, Bertrando Report). The CHC found
that although the building had been
altered with dormer additions in the
1970’s, the modifications to these
portions of the roofline do not affect
the ability of the building to convey
its architectural and historical
significance. The CHC determined
the building’s overall integrity and
characteristics as an excellent
example of a neo-classic building with Queen Anne influences merited recognition as a Master
List property. The CHC found the property to be architecturally significant because it is John
1144 Buchon Street, Front elevation
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Council Agenda Report – Master List, 1144 Buchon Street Page 2
December 10, 2013
Chapek’s first project as a professional contractor. John Chapek is a recognized influential early
builder in San Luis Obispo History who designed and built many commercial buildings and
residences in the early 20th Century period. The CHC found the property meets historical
significance criteria because of the early influence in the downtown business community of the
original owner, Leonard Hill. Leonard Hill contributed to the early promotion of the downtown
as the owner of a stationary and school supplies store. Leonard Hill was a charter member of the
San Luis Obispo Board of Trade when it formed in 1903 and is remembered as the father of
Christmas celebrations in the downtown 1. The “Hill’s Bazaar” business name survived in the
downtown for nearly 100 years.
The CHC found the house could qualify for the Master List of Historic Resources based on
architectural criteria and historical criteria of the Historic Preservation Ordinance (Attachment 3,
CHC Resolution) and recommended the City Council add the property to the Master List of
Historic Resources as the historic Leonard W. Hill House.
CEQA
Staff has review the proposed action and determined that the above actions does not constitute a
project, as defined by Section 15308 of the California Environmental Quality Act and is
therefore exempt from environmental review.
FISCAL IMPACT
Adding the property to the Master List will have no fiscal impact on the City. If the property is
added to the Master List, the applicants will have the ability to apply for a Mills Act Historic
Preservation Contract. To qualify for the Mills Act program, the property must be on the Master
List of Historic Resources. Mills Act contracts require an application and fee of $3,867,
commitment to specific improvements, and/or maintenance of the property, review by the CHC,
and final approval by the City Council. Fiscal impact analysis is included in the Council agenda
reports for Mills Act contracts.
ALTERNATIVES
1. Continue the item for additional analysis or research.
2. Deny the request to add the property located at 1144 Buchon Street to the Master List of
Historic Resources and maintain the property on the Contributing List of Historic Resources.
ATTACHMENTS
1. Vicinity Map
2. Addendum to Bertrando and Bertrando Research Consultants Historic Evaluation,
Leonard Hill House, June 2012.
1 Historic Resource Evaluation, Leonard W. Hill House, Bertrando and Bertrando Research Consultants, June 2012.
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Council Agenda Report – Master List, 1144 Buchon Street Page 3
December 10, 2013
3. Cultural Heritage Committee Staff Report, September 23, 2013 (without attachments)
4. Cultural Heritage Committee final Resolution No. CHC-1010-13
5. Draft Council Resolution
T:\Council Agenda Reports\2013\2013-12-10\Master List Request - 1144 Buchon (Johnson-Leveille)
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VICINITY MAPFile No. 106-121144 Buchon ¯
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Attachment 5
RESOLUTION NO. (2013 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADDING
THE PROPERTY LOCATED AT 1144 BUCHON STREET TO THE MASTER LIST OF
HISTORIC RESOURCES, CHC 106-12
WHEREAS, applicants Chris and Robert Hoover, on September 4, 2012, submitted an
application to add their Contributing historic property to the Master List of Historic Resources;
and
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo at a public
hearing held in the Council Meeting Room of City Hall, 990 Palm Street, San Luis Obispo,
California, on November 26, 2012, and continued the item requesting additional information;
and
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo at a public
hearing held in the Council Meeting Room of City Hall, 990 Palm Street, San Luis Obispo,
California, on September 23, 2013, and recommended the City Council add the property to the
Master List of Historic Resources; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber of
City Hall, 990 Palm Street, San Luis Obispo, on December 10, 2013, for the purpose of
considering adding the property located at 1144 Buchon Street to the Master List of Historic
Resources (CHC 106-12); and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicants, interested parties, the records of the Cultural Heritage Committee hearing, and
the evaluation and recommendations by staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. The Council makes the following findings of consistency with
Historic Preservation Program Ordinance eligibility criteria for Master List Historic Resources:
1. The house qualifies for the Master List of Historic Resources based on architectural criteria
since dormer additions added in the 1970’s do not affect the ability of the building to convey
its architectural and historical significance due to its overall integrity and characteristics as
an excellent example of a neo-classic building with Queen Anne influences. The property is
also significant architecturally since it is the first commercial building project of John
Chapek, a recognized influential early builder in San Luis Obispo history.
2. The house qualifies for the Master List of Historic Resources based on historical criteria
since Leonard Hill commissioned the building of the structure and lived in the home during
the period he was an influential and active downtown business owner in the first 20 years of
the 20th Century. The name of the business founded by Leonard Hill, “Hill’s Bazaar”
survived in the downtown for nearly 100 years.
C5 - 37
Resolution No. [ ] Attachment 5
Page 2
SECTION 2. Action. The Council of the City of San Luis Obispo does hereby add the
property located at 1144 Buchon Street to the Master List of Historic Resources as the historic
“Leonard W. Hill House”.
SECTION 3. Environmental Determination. The City Council has determined that
the above actions do not constitute a project, as defined by Section 15308 of the California
Environmental Quality Act and are exempt from environmental review.
Upon motion of , seconded by , and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted this _____ day of _____________________, 2013.
_____________________
Jan Howell Marx, Mayor
ATTEST:
_____________________
Anthony J. Mejia, City Clerk
APPROVED AS TO FORM:
_/s/ Christine Dietrick____________________
Christine Dietrick, City Attorney
C5 - 38
FROM: Wayne Padilla, Finance and Information Technology Director
Prepared By: Steve Schmidt, Information Technology Manager
SUBJECT: SOFTWARE SOLUTIONS CONTRACT FOR TYLER/ENERGOV TESTING
AND TRAINING
RECOMMENDATION
Award a contract to Software Solutions for testing and training services on the Tyler/EnerGov
Solutions software and authorize the City Manager to execute a “Not-to-Exceed” contract totaling
$43,950.
DISCUSSION
Background
The City is currently engaged in replacing multiple old, outdated FoxPro applications with
Commercial off-the-shelf software applications (COTS); the most extensive and expensive of these
replacement applications is from Tyler/EnerGov Solutions. The Tyler/EnerGov application is the
GIS centric, user interface software utilized for a wide range of mission-critical functions
throughout the organization, including landuse inventory, planning, permitting, code enforcement
and inspections. Although this project has required a huge resource commitment, the replacement is
critical in delivering day-to-day services to the City and the community in an efficient, reliable and
cost effective manner.
The project is nearing completion with implementation anticipated for spring 2014. System
configuration testing has already begun and will continue through the first part of December. User
Acceptance Training (UAT) will begin in December and run through January. User system training
will take place in January and February with go live scheduled for March 14.
Software Solutions
During the transition from the old FoxPro applications to Tyler/EnerGov, the City has contracted
with Software Solutions on an as-needed basis to provide consultation and support to staff. To make
this project a success, the City needs to involve Software Solutions to support the UAT
development and testing, as well as user training prior to go live. Staff proposes utilizing the
services of Software Solutions more extensively during this time.
Software Solutions will perform the following services:
• UAT Testing Templates - Develop specific system testing sheets for the end users to use in
testing the very detailed functions of the system.
• Develop end-user training goals and create custom quick reference guides for each system
module.
• User Acceptance Testing – Schedule and facilitate intensive testing of the EnerGov system.
Meeting Date
Item Number 12-10-2013
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• Training Classes – In conjunction with Tyler/EnerGov, design conduct Train-the-Trainer
classes.
• Over-see the City trainers as they train all City users.
• Help Desk Support – Provide onsite support and follow-up training during the week after the
system goes live.
Sole Source Justification
Staff recommends a sole source contract from Software Solutions for the following reasons:
• The City currently has an annual contract with Software Solutions for other training services,
including classes on Microsoft Office products, and staff throughout the City has been
extremely pleased with these services as well as with the commitment of the vendor in ensuring
the success of these trainings for the City. This high level of confidence in the capability of
Software Solutions is important to offset the loss of confidence in the prior training effort.
• The vendor has extensive knowledge of the City’s current FoxPro applications as well as staff’s
needs for the new EnerGov system.
• The vendor has previously been engaged on a much smaller scale to provide input in the
development of a training plan for the EnerGov system. This experience has led to the vendor
being highly familiar with the system and the training needs of the City in a way that would take
any other contractor a great deal of time to reach the same level of understanding.
• The vendor has a facility in San Luis Obispo and is available on short notice to assist with staff
questions and provide support when the new system goes live.
CONCURRENCES
The senior management staff committee working on the Tyler/EnerGov project concurs with this
recommendation. Additionally, the Community Development Department Director, whose staff is
the most highly impacted by this software conversion and is the Executive Sponsor of this project,
concur with this recommendation.
FISCAL IMPACT
There is no fiscal impact on the General Fund for this contract. The City has not been paying
Tyler/EnerGov annual maintenance and support fees due to the system’s lack of critical
functionality. Contract Amendment No. 4 (attached) stipulates that the City will begin to pay
maintenance and support to Tyler/EnerGov in April, providing the system actually goes live in
March.
There is currently $95,000 in the Information Technology 2013-14 budget for maintenance and
support for the EnerGov project. The monthly cost of maintenance and support is $7,386. If all
goes as scheduled, the City will owe Tyler/EnerGov the 3-month prorated amount of $22,158 for
April, May and June. Annual funding of $88,627 for maintenance and support will begin at the
start of the new fiscal year. After the last quarter year payment, there is still $72,842 remaining in
the current year’s budget. The 2014-15 budget includes $104,000 for maintenance and support, as
well as any custom programming that the City may require from Tyler/EnerGov.
The Software Solutions detailed contract cost summary is below:
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City of SLO EnerGov Pricing Model
2013-2014 Project
Item Daily Rate Days/Wk Weeks Total
Pre-UAT 750$ 35 11,250$
UAT Training 800$ 51 4,000$
UAT 800$ 26 9,600$
Training Docs 700$ 51 3,500$
Train the Trainer 1,200$ 41 4,800$
ALTERNATIVES
1. Select a different vendor. This is not recommended due to the vendor’s knowledge of both the
FoxPro applications and the Tyler/EnerGov system. Additionally, the vendor has extensive past
experience in successfully training City staff on new software programs and providing ongoing
support.
2. Do not hire a vendor to assist with testing and training. This is not recommended since the
Tyler/EnerGov testing and training offered is not adequate to meet the City’s needs. Also, City
staff are not software testing or training experts and do not have experience with a software
implementation of this magnitude. Software Solutions will be available to fill in these gaps to
ensure a smooth transition to the new system.
ATTACHMENTS
1. Agreement - Software Solutions Proposal - General Terms and Conditions.pdf
2. SLO AMENDMENT 4 - Final Draft.pdf
T:\Council Agenda Reports\2013\2013-12-10\Software Solutions Contract for Tyler-EnerGov Testing and Training (Padilla-Schmidt)
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this
_____________day of ____________________________________, by and between the CITY OF SAN
LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and SOFTWARE SOLUTIONS,
hereinafter referred to as Consultant.
W I T N E S S E T H:
WHEREAS, on the City wants Tyler/EnerGov Software Testing and Training: and
WHEREAS, Consultant is qualified to perform this type of service and has submitted a proposal
to do so which has been accepted by the City.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, until contract expiration.
2. CITY'S OBLIGATIONS. For providing services as specified in this agreement, City
will pay, and Consultant shall receive, compensation in a total sum not to exceed $43,950.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and
agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City provide
all specified services as described in Exhibit A (Consultant’s Proposal) attached hereto and incorporated
into this Agreement by reference. Consultant further agrees to the contract and performance terms as set
forth in Exhibit B attached hereto and incorporated into this Agreement by reference.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer.
6. COMPLETE AGREEMENT. This written Agreement, including all writings
specifically incorporated herein by reference, shall constitute the complete agreement between the parties
hereto. No oral agreement, understanding, or representation not reduced to writing and specifically
incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or
representation be binding upon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
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City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Consultant Software Solutions
Attn: Derek Crawford
3220 So. Higuera, Suite 208
San Luis Obispo, CA 93401
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant
that each individual executing this agreement on behalf of each party is a person duly authorized and
empowered to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
ATTEST: CITY OF SAN LUIS OBISPO:
________________________________ By: _____________________________________
City Clerk Jan Howell Marx, Mayor
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
City Attorney Software Solutions
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Exhibit A
Monday, November 4, 2013
Steve Schmidt
IT Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo
Dear Steve,
The following is a preliminary proposal based upon your recent request for training. Please
review this information and reply back to me at your convenience. We will be more than happy
to customize the training to best suit your organization’s needs.
Sincerely,
Derek Crawford
Owner
Software Solutions Team
Office: (805) 786-4283
Fax: (805) 545-5435
Cell: (805) 801-4825
Email: derek@sstslo.com
Web: www.sstslo.com
S OFTWARE T RAINING P ROPOSAL
Presented to
City of San Luis Obispo
C6 - 6
Exhibit A
T RAINING P ROPOSAL
Program Overview
Software Solutions Team (SST) will assist in the development and delivery of end-user
UAT (user acceptance testing) and computer training to the staff of CITY OF SAN LUIS
OBISPO (Client) on EnerGov. SST will research and become familiar with the practical
use and application of each of the software systems, organize and conduct system testing
for Power Users and then coordinate and support hands-on (one computer per student)
training to Client's end users.
Training Site
All classes will be taught in Client's F&IT Training Room or suitable venue with access to
the City's network.
Training Material
SST will provide training material that will be customized by the Power Users of each
department/division using EnerGov. Each course includes vendor provided courseware, as
well as quick reference guides customized by SST covering Client specific topics, for each
participant.
Scope of Testing and Training and Services to be Provided
1. PRE-UAT PREP
Dates: Oct. 31, 2013-Nov. 27, 2013
Frequency: 2-3 days/week
Duration: 5 weeks
SST Services Provided:
SST will research the Client's intended use of EnerGov, as well as the basic features
and functionality of those applications, in order to develop specific criteria and goals
for the end-users' testing and training program. SST will have access to Client's
network and applications so as to develop this program. SST will work with
Client’s departmental Power Users to ensure understanding how their business
process is to be managed in EnerGov and then translate those steps into specific
acceptance testing scripts to be used by Client staff. SST will organize and conduct
meetings with Power Users and EnerGov team members to facilitate mutual
understanding of the expected software functionality and identify configuration
issues and/or bugs that need to be addressed prior to the UAT training session. SST
will assign department/division specific Power Users to customize EnerGov UAT
testing scripts to address specific steps/processes that need to be tested. SST will
assist in UAT session scheduling and user assignments. SST will post all
configuration issues and bugs on EnerGov SharePoint UAT List.
C6 - 7
Exhibit A
2. UAT TRAINING
Dates: Dec. 2, 2013-Dec. 6, 2013
Frequency: Daily
Duration: 5 days
SST Services Provided:
SST will assist EnerGov training staff in the delivery of UAT training sessions.
Responsibilities will include with each Client department/division Power User to
ensure they have the skills necessary to navigate each necessary module in EnerGov
so they can adequately test for completeness. SST will work with Power Users to
make any necessary changes to their department/division specific UAT testing
scripts prior to the formal UAT sessions.
3. UAT
Dates: Dec. 9, 2013-Jan. 24, 2014
Frequency: 2 days/week
Duration: 6 weeks
SST Services Provided:
SST will assist in the scheduling and participate in the testing of at UAT modules for
EnerGov. Services will include ensuring customized UAT scripts are used by the
testing Power Users, providing direction on expected use and functionality,
documenting and posting of all UAT problems on the EnerGov SharePoint UAT
List.
4. TRAINING DOCUMENT PREPARATION
Dates: Oct. 31, 2013-Feb. 7, 2014
Frequency: As needed
Duration: 14 weeks
Max. Hours: 40 hours
SST Services Provided:
SST will take the existing EnerGov user guide manual developed by SST in 2012,
add current screen shots and module updates for EnerGov as of the end of UAT
date, and make the editable manual (MS Word format) available for department
Power Users. It is expected that City Power Users will complete the editing for end-
user training manuals to explicitly detail how the software will be used for their
specific department/division’s use for their business processes. Additional
development labor beyond the proposed 40 hours will be billed at $100/hr. rate.
5. TRAIN THE TRAINER
Dates: Feb. 3, 2014-Feb. 7, 2014
Frequency: 4 days/week
Duration: 1 week
SST Services Provided:
SST will work with EnerGov to design a schedule for dedicated computer classes
on mutually agreeable dates, times, and course content for up to 25 City power-
users the following courses:
• Course Name: EnerGov Train the Trainer training
Course Length: 1-3 hours (to be determined) per session, up to 4
session/day
C6 - 8
Exhibit A
(Maximum of 13 students/class)
6. END-USER TRAINING
Dates: Feb. 10, 2014-Feb. 28, 2014
Frequency: 2-3 days/week
Duration: 3 weeks
SST Services Provided:
SST will design a schedule for dedicated computer classes on mutually agreeable
dates, times, and course content for the following courses:
• Course Name: EnerGov End User Training
Course Length: 1-2 hours (to be determined) per session, up to 4
sessions/day
(Maximum of 20 students/class)
Registration
SST offers to arrange for the scheduling and registration of the client’s staff.
Equipment
Client will provide all computer hardware and software for training at Client’s facility.
Costs
Item Daily Rate Days/Wk Weeks Total
Pre-UAT 750$ 35 11,250$
UAT Training 800$ 51 4,000$
UAT 800$ 26 9,600$
Training Docs 700$ 51 3,500$
Train the Trainer 1,200$ 41 4,800$
End User Training 1,200$ 33 10,800$
Extended Costs 43,950$
Cancellation / Rescheduling
SST’s standard 5 day cancellation policy applies to all dedicated class dates. Please call us
for further details.
C6 - 9
Exhibit A
Payment
All fees for training services are considered due and payable upon first day of training.
Billing terms can be arranged. Invoicing for training and development services will occur
on the 1st and 15th of each month.
As always with SST, we stand behind the quality of our training programs, and guarantee your
complete satisfaction. Please contact us as soon as possible to accept this proposal, so that we
may begin reserving your preferred training dates.
Respectfully,
Derek Crawford
Owner
Software Solutions Team
Office: (805) 786-4283
Fax: (805) 545-5435
Cell: (805) 801-4825
Email: derek@sstslo.com
Web: www.sstslo.com
C6 - 10
1. Business Tax. The Consultant must have a valid City of San Luis Obispo business tax certificate
before execution of the contract. Additional information regarding the City's business tax program
may be obtained by calling (805) 781-7134.
2. Ability to Perform. The Consultant warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out
and complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
3. Laws to be Observed. The Consultant shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during its performance of the work.
4. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Consultant is required to pay.
5. Permits and Licenses. The Consultant shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
6. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
7. Public and Employee Safety. Whenever the Consultant's operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
8. Preservation of City Property. The Consultant shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured or
damaged resulting from the Consultant's operations, it shall be replaced or restored at the
Consultant's expense. The facilities shall be replaced or restored to a condition as good as when
the Consultant began work.
9. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-consultants
engaged for the performance of this work that only persons authorized to work in the United States
pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be
employed in the performance of the work hereunder.
10. Consultant Non-Discrimination. In the performance of this work, the Consultant agrees that it
will not engage in, nor permit such sub- consultants as it may employ, to engage in discrimination
in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
11. Work Delays. Should the Consultant be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire,
earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due
to federal government restrictions arising out of defense or war programs, then the time of
completion may, at the City's sole option, be extended for such periods as may be agreed upon by
the City and the Consultant.
C6 - 11
12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and
acceptance by the City of the materials, supplies, equipment or services provided by the Consultant
(Net 30).
13. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Consultant are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not relieve
Consultant of any of its obligations to fulfill its contract requirements.
14. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Consultant in preparing its invoices to City as a condition precedent to any
payment to Consultant.
15. Interests of Consultant. The Consultant covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Consultant further covenants that, in the
performance of this work, no sub-consultant or person having such an interest shall be employed.
The Consultant certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of
the work hereunder, the Consultant shall at all times be deemed an independent Consultant and not
an agent or employee of the City.
16. Indemnification for Professional Liability. To the fullest extent permitted by law, the
Consultant shall indemnify, protect, defend and hold harmless the City and any and all of its
officials, employees and agents (“Indemnified Parties”) from and against any and all losses,
liabilities, damages, costs and expenses, including attorney’s fees and cost which arise out of,
pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
17. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual or
business entity of any kind without the previous written consent of the City.
18. Termination. If, during the term of the contract, the City determines that the Consultant is not
faithfully abiding by any term or condition contained herein, the City may notify the Consultant in
writing of such defect or failure to perform. This notice must give the Consultant a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Consultant has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the contract
immediately by written notice to the Consultant to said effect. Thereafter, neither party shall have
any further duties, obligations, responsibilities, or rights under the contract except, however, any
and all obligations of the Consultant's surety shall remain in full force and effect, and shall not be
extinguished, reduced, or in any manner waived by the termination thereof.
In said event, the Consultant shall be entitled to the reasonable value of its services performed from
the beginning date in which the breach occurs up to the day it received the City's Notice of
Termination, minus any offset from such payment representing the City's damages from such
breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Consultant as may be set forth in the Proposal;
compensation for any other work, services or goods performed or provided by the Consultant shall
C6 - 12
be based solely on the City's assessment of the value of the work-in-progress in completing the
overall workscope.
The City reserves the right to delay any such payment until completion or confirmed abandonment
of the project, as may be determined in the City's sole discretion, so as to permit a full and
complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in
excess of the compensation quoted in its proposal.
19. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Consultant as part of the work or services under these specifications shall
become the permanent property of the City, and shall be delivered to the City upon demand.
20. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Consultant as part of the work or services under these
specifications shall be the property of City and shall not be made available to any individual or
organization by the Consultant without the prior written approval of the City.
21. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Consultant is required to furnish in
limited quantities as part of the work or services under these specifications, the Consultant shall
provide such additional copies as are requested, and City shall compensate the Consultant for the
costs of duplicating of such copies at the Consultant's direct expense.
22. Required Deliverable Products. The Consultant will be required to provide:
2 hard copies of the draft or electronic copy (Adobe Acrobat format)
2 hard copies of the final project report, and 1 electronic copy (Acrobat Adobe format) of the final
report.
City staff will review any documents or materials provided by the Consultant and, where
necessary, the Consultant will be required to respond to staff comments and make such changes as
deemed appropriate.
Computer files must be on 3½", high-density, write-protected diskettes or CD’s formatted for use
on IBM-compatible systems. Each diskette must be clearly labeled and have a printed copy of the
directory. Alternatively, files may be emailed to the City.
23. Amendments. Any amendment, modification or variation from the terms of this Agreement shall
be in writing and shall be effective only upon approval by the City Engineer of the City.
24. Complete Agreement. These Purchase Order Conditions and Consultants proposal shall
constitute the complete agreement between the parties hereto. No oral agreement, understanding or
representation not reduced to writing and specifically incorporated herein shall be of any force or
effect, nor shall any such oral agreement, understanding or representation be binding upon the
parties hereto.
C6 - 13
25. Insurance Requirements. The Consultant shall provide proof of insurance in the form, coverages
and amounts specified in these conditions as a precondition to contract execution. The Consultant
shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the
work hereunder by the Consultant, its agents, representatives, employees or sub-consultants.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 20 10
Prior to 1993 or CG 20 10 07 04 with CG 20 37 10 01 or the exact equivalent as determined by the
City).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Consultant; products
and completed operations of the Consultant; premises owned, occupied or used by the Consultant;
or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, official, employees,
agents or volunteers.
2. For any claims related to this project, the Consultant's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
3. The Consultant's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
C6 - 14
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VII.
Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
C6 - 15
1
Amendment
No.
4
to
the
Master
Customer
Agreement
between
Tyler
Technologies,
Inc.
and
City
of
San
Luis
Obispo
This
Agreement
is
between
Tyler
Technologies,
Inc.
(“Tyler”)
a
Delaware
corporation
with
offices
at
2160
Satellite
Blvd,
Suite
300,
Duluth,
Georgia,
30097,
as
successor-‐in-‐interest
to
EnerGov
Solutions,
LLC
(“EnerGov”),
and
the
City
of
San
Luis
Obispo,
California
(“Customer”)
located
at
990
Palm
Street,
San
Luis
Obispo,
CA
93401.
The
date
of
this
Amendment
is
________________,
2013
(“Effective
Date”).
Recitals
1. On
September
20,
2010,
the
parties
entered
into
the
Master
Customer
Agreement
SLO090210
in
which
EnerGov
agreed
to
provide
a
software
product
to
meet
the
current
and
future
needs
of
Customer
and
to
assist
in
the
successful
implementation
and
deployment
of
said
product
(“Master
Customer
Agreement”).
2. On
October
1,
2010,
the
parties
entered
into
the
First
Amendment
to
the
Master
Customer
Agreement,
which
amended
the
payment
schedule
in
the
Master
Customer
Agreement,
and
the
statement
of
work
incorporated
into
the
Master
Customer
Agreement
(“Amendment
No.
1”).
3. On
December
7,
2011,
the
parties
entered
into
the
Second
Amendment
to
the
Master
Customer
Agreement,
which
amended
terms
and
conditions
related
to
Asset
Management
Licenses,
Professional
Service
Rates
and
Annual
Maintenance
and
Support
Fee
Changes
(“Amendment
No.
2”).
4. On
March
19,
2012,
the
parties
entered
into
the
Third
Agreement
to
the
Master
Customer
Agreement,
which
amended
the
terms
and
conditions
for
training
and
onsite
assistance
during
training
and
deployment
(“Amendment
No.
3”).
5. The
parties
desire
to
amend
the
Master
Customer
Agreement
as
it
has
been
amended
with
Amendment
No.
1,
Amendment
No.
2
and
Amendment
No.
3
(collectively
referred
to
as
“Amendments”)
to
clarify
the
scope
of
work
necessary
to
deliver
a
product
as
agreed
herein
to
Customer.
Therefore,
in
consideration
of
the
foregoing
recitals
described
above,
the
parties
agree
as
follows:
Agreement
1. Master
Customer
Agreement
and
Amendments.
All
terms
and
conditions
of
the
Master
Customer
Agreement
and
its
Amendments
remain
in
full
force
and
effect.
To
the
extent
that
there
is
a
conflict
between
the
Master
Customer
Agreement
and
Amendments
as
it
relates
to
the
Scope
of
Work
and
this
Amendment,
this
Amendment
shall
prevail.
C6 - 16
2
2. Scope
of
Work.
The
parties
agree
to
the
terms
and
conditions
and
their
respective
obligations
as
set
forth
in
the
Scope
of
Work
attached
hereto
as
Exhibit
A
and
incorporated
by
reference.
Any
development,
training,
or
other
work
required
beyond
that
detailed
in
the
Scope
of
Work
will
result
in
additional
fees
and
expenses
to
be
borne
by
Customer.
Tyler
shall
not
perform
any
additional
development,
training
or
other
work
beyond
that
detailed
in
the
Scope
of
Work
without
prior
written
approval
by
Customer.
3. Representation
by
Counsel.
Each
party
acknowledges
that
it
has
had
the
opportunity
to
consult
with
legal
counsel.
4. Support
Payment
Schedule.
The
parties
agree
that
Customer
shall
remit
to
Tyler
the
prorated
first
quarterly
Software
Support/Maintenance
fee
in
the
amount
listed
in
the
Agreement
and
as
modified
by
the
Amendments
(“Support
Payment”)
upon
the
earlier
of
(i)
the
use
of
a
Tyler
software
product
in
live
production,
or
(ii)
one
hundred
eighty
(180)
days
from
the
date
of
the
execution
of
this
Amendment
and
shall
remit
a
Support
Payment
every
three
(3)
months
at
the
beginning
of
each
quarter
thereafter
for
the
term
of
the
Software
Support
Agreement.
5. Authority
to
Execute
Amendment.
Both
parties
covenant
that
each
individual
executing
this
Amendment
on
behalf
of
each
party
is
a
person
duly
authorized
and
empowered
to
execute
contracts
for
such
party.
IN
WITNESS
WHEREOF,
the
parties
hereto
have
caused
this
instrument
to
be
executed
the
day
and
year
first
written
above.
ATTEST:
CITY
OF
SAN
LUIS
OBISPO
____________________________________
By:
____________________________________
City
Clerk
City
Manager
APPROVED
AS
TO
FORM:
TYLER
TECHNOLOGIES,
INC
_____________________________________
By:
____________________________________
City
Attorney
Name:
_________________________________
Title:
__________________________________
C6 - 17
3
EXHIBIT
A
–
SCOPE
OF
WORK
The
Services,
hours,
and
costs
described
and
quoted
below
constitute
the
Scope
of
Work
Tyler
has
agreed
to
perform
for
Customer
at
no
charge
to
Customer.
Any
services,
hours,
or
costs,
including
expenses,
provided
or
incurred
by
Tyler
at
the
request
of
Customer
that
are
not
set
forth
in
this
Scope
of
Work
shall
be
provided
at
Tyler’s
then-‐current
time
and
materials
rate,
and
shall
be
payable
by
Customer.
Tyler
shall
not
perform
any
additional
development,
training
or
other
work
beyond
that
detailed
in
the
Scope
of
Work
without
prior
written
approval
by
Customer.
Configuration
Modifications
I. Permit
and
Plan
Management
(Reconfiguration)
A. Organization.
1. Except
for
Utilities,
no
changes
will
be
made
as
to
the
starting
module
for
existing
record
types.
2. Building
Permits
often
result
in
a
hierarchical
organization
of
multiple
Permit
Cases—each
designed
for
managing
a
specific
aspect
of
the
project.
a. Granular
Types
and
Work
Classes
constrain
the
scope
of
individual
cases.
b. Additional
Info
fields
are
unique
to
the
Type
and
Work
Class
of
the
Permit
Case
they
belong
to.
c. Sub-‐Permits,
such
as
Fire,
Encroachment,
and
Recycled
Water
Permits,
are
created
in
the
workflow
of
a
parent
Building
Permit.
d. Stand-‐alone
Trade
Permits
are
distinct
from
the
Trade
sub-‐permits
of
a
Building
Permit.
3. Classification
schemes
are
harmonized
specifically
to
each
Type
and
Work
Class
of
Permit
(e.g.
Occupancy
Class,
Census
Code,
etc.).
a. The
Square-‐Foot
Calculator
records
distinct
areas
to
be
considered
during
the
lifecycle
of
the
Building
Permit.
b. The
Valuation
Calculator
records
the
calculated
value
of
areas
or
aspects
of
the
project.
c. Values
recorded
in
both
calculators
will
be
used
for
calculating
fees.
d. Fee
Templates,
Intelligent
Objects,
stored
procedures,
or
a
combination
thereof
will
use
values
recorded
in
the
Square
Foot
Calculator
for
calculating
fees.
4. In
order
to
calculate,
record,
and
provide
a
formal
fee
estimate,
a. All
Estimate
Cases
must
be
closed
once
a
subsequent
Estimate
Case
or
a
formal
Permit
or
Plan
Case
is
created.
b. The
Intelligent
Automation
Agent
closes
any
Estimate
Case
on
the
Expiration
Date
assigned
to
it.
B. Fees.
1. Fees
may
be
collected
at
any
point
during
the
lifecycle
of
a
Permit
or
Plan
Case,
or
explicitly
deferred
until
any
time
during
the
lifecycle
of
a
Case.
C6 - 18
4
2. Fees
and
Fee
Templates
are
assigned
to
the
specific
Permits
and
Plan
Case
types
and
work
classes
that
they
relate
to.
3. Fees
and
Credits
will
not
propagate
from
Sub-‐Permits
and
Sub-‐Plans
to
parent
cases.
A
Grand
Total
at
the
parent
case
level
is
only
available
through
the
use
of
a
report
(or
an
advanced
stored
procedure).
Should
the
current
Fees
&
Credits
Report
not
be
needed
as
a
result
of
the
reconfiguration
effort,
then
this
report
may
be
modified
at
the
city’s
choosing
to
accommodate
this
need.
If,
however,
the
Fees
&
Credits
Report
is
still
needed,
then
this
report
would
be
a
custom
report
and
would
be
billed
at
the
current
hourly
rate
for
report
development.
C. Inspections.
1. Inspections
are
tracked
through
the
appropriate
Permit
Case—frequently
a
Sub-‐Permit,
not
necessarily
the
Building
Permit
Case.
2. Building
Inspectors
will
likely
use
the
full
client.
Other
inspectors
may
consider
iG
Inspect
in
the
future.
D. CAP/ePortal.
1. The
Silverlight
Decision
Engine
is
required
to
allow
the
receipt
of
Submittals
and
the
creation
of
Applications
through
CAP.
A
decision
on
the
use
of
EnerGov’s
Decision
Engine
is
pending
but
would
be
part
of
the
implementation
if
that
decision
were
made.
2. Plan
Cases
and
Permit
Cases
may
be
managed,
but
not
created,
through
CAP.
This
information
is
dependent
on
a
decision
regarding
the
use
of
the
Decision
Engine
II. Object
Management
(New
Configuration
&
Data
Services)
A. Organization.
1. An
Object
Record
will
be
created
to
represent
each
distinct
property
element
that
may
participate
in
a
Plan,
Permit,
or
Code
Enforcement
Case.
2. Information
relative
to
Building
Permits
will
typically
be
maintained
on
a
corresponding
Structure
Object,
while
information
relative
to
Planning
Applications
will
typically
be
maintained
on
Parcels,
Structure
Objects,
and
Suite
Objects.
3. Every
occupiable
Structure
Object
contains
at
least
one
Suite
Object.
4. Almost
all
Structure
Objects
are
attached
to
the
single
Parcel
upon
which
they
sit.
5. Suite
Objects
are
always
assigned
a
single
Address,
while
Structure
Objects
and
Parcels
may
be
assigned
multiple
Addresses—or
none
at
all.
6. The
hierarchy
between
Suite
Objects,
Structure
Objects,
and
Parcels
will
be
established
during
the
data
import
process,
and
then
maintained
by
City
staff.
B. Processes.
1. Structure
Objects
and
Suite
Objects
are
always
associated
to
any
Case
that
concerns
them.
2. GeoRules
do
not
consider
the
Object
Records
associated
with
a
Case,
or
any
Sub-‐Permits
or
Sub-‐
Plans
associated
to
it.
3. Holds,
Conditions,
and
Recommendations
at
the
property
level—Parcel,
Structure,
and
Suite—are
used
to
track
planning
agreement
details
and
entitlements.
C6 - 19
5
4. Object
Records
currently
have
no
relationship
to
Code
Enforcement.
5. EnerGov
will
consider
implementing
functionality
that
does
not
exist
currently
but
may
be
incorporated
into
a
future
release
should
Tyler's
development
team
decide
to
do
so.
a. GeoRules
that
act
upon
Object
Records;
b. relationships
between
Object
Records
and
Code
Enforcement;
and
c. the
ability
to
copy
Parcels
and
Addresses
from
an
Object
Record
to
the
Permit
or
Plan
Case
it
is
associated
to.
III. Impact
Fee
Management
(New
Configuration)
The
Impact
Module
will
not
be
used.
IV. Credit
Management
(Reconfiguration)
A. Organization.
1. Administrative
and
Impact
Fee
Credits
are
applied
to
the
appropriate
Permit
Case
or
Plan
Case
that
concerns
them.
2. Credits
are
maintained
at
the
property
level,
and
both
originate
and
are
applied
at
the
case
level.
3. Conditions
at
the
property
level—whether
Parcel,
Structure
Object,
or
Suite
Object—are
used
to
track
Credits
originating
in
planning
agreements.
B. Management.
1. Credits
will
be
memorialized
in
Additional
Info
on
Parcels,
Structure
Objects,
and
Suite
Objects.
2. Additional
Info
fields
on
the
case
will
show
the
number
of
units
that
may
be
credited.
EnerGov
does
not
enforce
the
fee
amount;
fee
inputs
will
be
entered
manually
or
automated
through
Intelligent
Objects
or
custom
programming
the
City
may
choose
to
implement
independently.
3. Credits
will
appear
as
a
negative
fee
on
the
Fee
tab.
C. Enforcement.
1. A
Hold
is
automatically
placed
on
any
Parcel
that
contains
Available
Credits.
A
Hold
is
automatically
released
when
Available
Credit
is
expended,
and
managed
by
Intelligent
Objects
that
trigger
when
a
record
is
saved.
2. A
Hold
will
be
manually
added
on
any
Parcel
that
is
associated
with
Structure
Objects
or
Suite
Objects
that
contain
Available
Credits.
Holds
do
not
currently
exist
on
Objects.
The
City
may
choose
to
independently
create
a
stored
procedure
to
automate
the
management
of
Parcel
Holds
based
on
conditions
involving
Objects.
3. The
addition
and
release
of
Holds
at
the
property
level
should
be
managed
through
the
use
of
Intelligent
Objects
(or
stored
procedures
as
noted
above.)
V. Object
Management
(Reconfiguration)
C6 - 20
6
A. Organization.
1. Residential
Rental
Units
will
be
tracked
as
Suite
Objects
attached
to
Permit
Cases.
2. Businesses
that
manage
Residential
Rental
Permit
Cases
will
be
associated
as
a
“Landlord”
Contact
Type.
3. Companies
doing
business
within
the
City
will
be
tracked—but
not
managed—as
Permit
Cases.
4. Structure
Objects
and
Suite
Objects
occupied
by
a
Company
will
be
associated
with
a
corresponding
Business
Permit
Case.
5. Conditions
for
occupying
a
Structure
Object,
Suite
Object,
or
Parcel
will
be
maintained
on
the
corresponding
Parcel.
6. Conditions
on
the
type
of
use
allowed
will
be
maintained
on
the
Parcels
and
may
be
configured
to
carry
down
to
new
Permit
and
Plan
Cases.
7. Conditions
do
not
currently
exist
on
Structure
Objects
or
Suite
Objects.
EnerGov
will
consider
implementing
the
ability
to
do
so
into
a
future
release
should
Tyler's
development
team
decide
to
do
so.
B. Inspections.
1. Annual
Rental
Property
Inspections
will
be
managed
through
Inspection
Cases
on
Residential
Rental
Permit
Cases
that
may
be
associated
with
Structure
Objects
or
Suite
Objects.
2. Annual
and
Biennial
Business
Occupancy
Inspections
will
be
managed
through
Inspection
Cases
on
Business
Occupancy
Permit
Cases
that
have
been
associated
with
Structure
Objects
or
Suite
Objects.
VI. Modules
not
included
in
the
Reconfiguration
effort
A. Projects
B. Code
Enforcement
C. Request
Management
D. Role
Setup
VII. Modules
to
be
removed
from
user
access
A. Business
Management
C6 - 21
7
Project
Phases
&
Estimated
Tyler
Resource
Hours:
Assess
&
Define
60
• New
Configuration
10
• Reconfiguration
50
Configuration
300
Software
Modifications
220
• New
Configuration
40
• Reconfiguration
180
Data
Services
60
• Reconfiguration
60
Report
Modifications
20
• Reconfiguration
20
User
Acceptance
Testing
80
• New
Configuration
20
• Reconfiguration
60
Training
(Train
the
Trainer)
80
• New
Configuration
20
• Reconfiguration
60
Go-‐Live
Support
(no
charge)
80
Total
Estimated
Resource
Hours
600
Total
Estimated
New
Configuration
Effort
90
$13,410
Total
Estimated
Reconfiguration
Effort
430
$64,070
Total
Go-‐Live
Support
Effort
80
per
contract
agreement
**
Resource
Rate
of
$149/hour
**
$77,480
Tyler
commits
to
provide
a
Resource
Rate
credit
of
up
to
$77,480.00
-‐$77,480
SLO
Responsibility
Go
live
costs
per
Master
Customer
Agreement
DEFINED
DELIVERABLES
/
WORK
DESCRIPTION
(Project
Roadmap)
Assess
&
Define
The
Assess
and
Define
stage
involves
comprehensive
business
process
assessment
and
analysis,
change
management
assessment
and
systems
assessment
and
analysis.
C6 - 22
8
In
conjunction
with
the
Customer
representatives,
Tyler
shall
perform
the
following
tasks:
• Review
each
business
process
as
a
basis
for
configuration
of
the
system
configuration
/
workflow
engine.
• Refine
and
firm
the
project
plan
(in
cooperation
with
the
Customer
Project
Manager).
• Review
and
document
intake
requirements,
forms,
and
data
fields
for
each
business
stream/
process
type.
• Collect
and
document
fees,
fee
schedules,
and
collection
procedures
for
each
business
stream/
process
type.
• Collect
and
document
all
required
inspections
and
inspection
result
options
for
each
business
stream/
process
type.
• Determine
data
import
strategy
with
Tyler’s
Data
Services
team.
• Review
and
adjust
project
scope
(amend
SOW/Contract)
based
on
additional
findings,
if
necessary.
Collect
data
files
(and
any
available
data
diagrams)
needed
for
data
importation;
create/analyze
data
mapping
to
support
business
goals.
Tyler
Responsibilities:
• Provide
prompt
response
to
Customer's
request
for
information.
• Process
workflow
translation
-‐
EnerGov
functional
and
system
configuration
requirements.
• Create
a
new
SharePoint
list
for
new
UAT
items.
(Close
out
previous
list.)
Customer
Responsibilities:
• Provide
prompt
responses
to
Tyler’s
request
for
information.
• Make
available
the
appropriate
Customer
key
users
(previously
defined)
and
content
experts
to
participate
in
the
business
process
analysis.
• Make
available
the
appropriate
files,
data
and
documentation
required
to
analyze
system
integrations
and
data
conversion.
• Where
available,
Customer
shall
provide
the
relevant,
documented
business
processes.
Where
not
available,
Customer
will
work
with
Tyler
to
comprehend
the
business
processes.
These
business
processes
will
be
process
mapped
and
used
by
Customer
as
the
basis
for
the
UAT.
Acceptance
Criteria:
§ Review
and
acceptance
of
the
updated
project
plan.
Review
and
accept
any
final
system
development
services
assessments
that
were
previously
considered
pre-‐analysis
estimates.
C6 - 23
9
Configure
&
Review
The
configure
and
review
stage
of
the
EnerGov
implementation
consists
of
configuring
the
EnerGov
system
around
the
requirements
collected
and
established
during
the
assess
and
define
stage.
Data
conversion,
creation
or
configuration
of
interfaces,
scripting
of
EnerGov's
IO
engine,
and
custom
report
development
are
also
an
integral
part
of
the
system
configuration
phase.
In
conjunction
with
the
Customer
representatives,
Tyler
shall
perform
the
following
tasks:
• Configure
the
EnerGov
.NET
Land
Mgmt
suite
around
the
requirements
collected
and
established
during
the
Assess
and
Define
phase.
• Develop
no
new
custom
reports.
(Additional
reports
may
be
purchased
on
an
hourly
basis.)
• Modify
any
of
the
previously
purchased
custom
reports.
• Perform
system
reviews
for
configuration
validation.
• Convert
the
FoxPro
legacy
data
into
the
Customer's
EnerGov
database
Tyler
Responsibilities:
• Provide
prompt
response
to
Customer's
request
for
information.
• Work
with
the
Customer
to
accurately
configure
EnerGov
.NET
Land
Mgmt
according
to
the
requirements
collected
and
established
during
the
Assess
and
Define
phase.
• Develop
data
mapping
utilities
that
will
properly
convert
data
into
the
EnerGov
database.
• If
additional
data
mapping
events
are
introduced
from
changes
in
original
scope,
a
change
order
may
need
to
be
processed
to
complete
further
data
mapping
activities.
Customer
Responsibilities:
• Provide
prompt
responses
to
Tyler’s
request
for
information.
• Make
available
the
appropriate
Customer
key
users
(previously
defined)
and
content
experts
to
participate
in
configuration
assessment
sessions
and
final
reviews.
• Work
with
Tyler
to
accurately
configure
EnerGov
.NET
Land
Mgmt
according
to
the
requirements
collected
and
established
during
the
Assess
and
Define
phase
• Provide
information
and
data
in
the
formats
specified
by
EnerGov
(SQL
Server
2000
or
Higher,
Access
97
or
Higher,
and
pipe
/comma
delimited
format)
• Make
available
the
key
users
for
data
mapping
from
the
current
systems
to
EnerGov.
• Data
scrubbing
if
required
• Allocate
the
time
for
qualified
business
and
technical
experts
for
the
data-‐mapping
sessions
that
are
critical
to
the
project
success
• Update
the
EnerGov
fee
setups
to
reflect
the
current
fee
schedule
in
use
by
the
city.
• Sign
off
on
configuration
items.
The
list
below
will
serve
as
a
foundation
to
these
sign-‐offs
and
may
items
more
be
added
as
needed.
o Districts
o Zones
o Address
Types
o Address
Drop-‐downs
–
Street
types,
Pre
&
Post
Directions
o Task
Types
&
Default
Users
o Fee
Setup
Report
C6 - 24
10
o Type/Class
combinations
o Payment
Methods
o GL
accounts
o Conditions
o Holds???
o Holidays
&
Business
week/hours
o Attachment
groups
and
associated
modules
o Users:
Role
/
GIS
Map
/
Departments
/
Inspector
Types
o Roles
&
Associated
Users
o Inspector
type/inspection
type
o Hearing/Meeting
Types
o Contact
Account
Types
o Bond
Types
o Task
Types
o Module
specific
Record
Type
Statuses
o Fee
Deletion
and
Adjustment
reasons
o Billable
Rates
&
Time
Types
o Fee
Schedule
o Code/Code
category
o Violation
Status
o Violation
Priority
o Certification
Types
&
Classifications
o Inspection
Types
&
Checklists
o Valuation
Calculator
o Renewal
Case
Types
o Permit
Dimension
Categories
o Plan
Correction
Library
o Plan
Type/Submittal
Type
o Submittal
Type/Item
review
Type
o Request
Priority
&
Source
o Custom
Reports
List
o Contact
Types
Acceptance
Criteria:
§ Review
and
acceptance
of
EnerGov
.NET
Land
Mgmt
suite
setup
and
configuration
-‐
validate
that
the
content
accurately
reflects
the
desired
business
process
collected
and
defined
within
the
project
definition
document,
to
the
extent
possible
prior
to
Administrator
Training
&
Verification.
§ Review
and
acceptance
of
the
data
conversion
delineated
above-‐
validate
that
the
content
accurately
reflects
the
desired
business
process
collected
and
defined
within
the
project
definition
documentation,
to
the
extent
possible
prior
to
Administrator
Training
&
Verification.
§ Review
and
acceptance
of
the
modified
custom
reports.
*
Administrator
Training
&
Verification
will
not
be
scheduled
until
all
sign-‐offs
have
been
completed.
C6 - 25
11
Administrator
Training
&
Verification
(UAT)
This
phase
of
the
EnerGov
project
is
a
necessary
component
as
it
relates
to
administrative
knowledge
transfer
and
in
the
validation
of
the
system
configuration
/
due
diligence
of
systems
readiness
to
production
migration.
This
phase
also
helps
ensure
the
key
individuals
are
trained
and
the
Customer
has
the
capabilities
of
best
reacting
to
ongoing
and
future
changes
in
business
process
/
configuration
requirements
(post
production).
In
conjunction
with
the
Customer
representatives,
Tyler
shall
perform
the
following
tasks:
• System
overview
training
for
administrators
/
agency
testers
• Testing
and
system
validation
for
promotion
to
production
Tyler
Responsibilities:
• Provide
prompt
response
to
Customer’s
request
for
information
• Provide
5
(five)
man
days
of
onsite
administrator
training
&
acceptance
assistance.
• Coordinate
with
Customer
to
define
training
logistics
and
schedule.
• Provide
recommendations
on
testing
strategy,
scenarios
and
best
acceptance
practices
• Assist
the
City
in
the
User
Acceptance
testing
(UAT)
effort
and
the
validation
of
the
system
configuration
readiness
to
be
migrated
to
production
for
active
use.
• Resolve
issues,
problems,
or
concerns
as
a
result
of
User
Acceptance
Testing
activities.
Customer
Responsibilities:
• Provide
prompt
responses
to
Tyler’s
request
for
information.
• Select
and
prepare
system
admin/power
users
that
will
be
participating
in
training.
• Ensure
personnel
critical
to
the
success
of
the
project
(subject
matter
experts
/
key
power
users,
etc.)
are
present
and
available
to
participate
in
admin
training
and
testing.
• Dedicate
sufficient
testing
participation
time
to
complete
UAT.
The
Customer
acknowledges
that
the
time
commitment
may
exceed
40
hours
per
individual
involved
in
the
testing
portion
of
this
project.
Tyler
also
reserves
the
right
to
assign
project
personnel
to
additional
duties
until
the
Customer
has
fulfilled
testing
responsibilities.
• Use
testing
scenarios
as
the
basis
for
the
system
acceptance.
• Provide
facilities
suitable
to
training
and
testing
needs.
• Complete
reviews
for
all
business
processes;
post
issues
to
SharePoint;
upload
test
result
forms
for
all
business
processes
to
SharePoint
Acceptance
Criteria:
• Technical
training
shall
be
complete
when
training
session
man
days
are
fully
utilized.
• All
business
process
forms
have
been
posted
to
SharePoint.
• Tested
system
accepted
and
ready
for
production
environment
/
end
user
training.
*
End
User
Training
will
not
be
scheduled
until
all
UAT
sign-‐offs
have
been
completed.
C6 - 26
12
End
User
Training
(Train
the
Trainer)
With
an
application
as
dynamic
and
configurable
as
EnerGov.NET,
it
is
imperative
that
an
equally
configurable
and
dynamic
training
program
be
provided
that
is
tailored
to
each
Customer’s
unique
business
processes,
workflows
and
terminology.
As
such,
Tyler
offers
adaptable
training
solutions
to
meet
the
needs
of
each
client.
Tyler
will
provide
a
modified
“Train
the
Trainer”
approach
of
specified
Customer
staff
(end
users,
power
users,
administrators,
etc.)
not
to
exceed
10
members.
Training
for
this
project
will
be
conducted
on-‐site
by
Tyler
Implementation
team
and
will
consist
of
a
combination
of
One-‐on-‐One
training
&
Classroom
training.
Tyler’s
Project
Consultant
will
coordinate
the
training
plan
with
related
sessions
in
conjunction
with
the
Customer’s
Project
Manager.
The
objective
of
the
Train
the
Trainer
approach
will
be
as
follows:
• Familiarize
the
trainers
with
the
EnerGov
application
and
functionality
• Present
best
practices
for
teaching/training
challenging
topics
or
features
• Provide
the
necessary
documentation
to
be
used
for
end-‐user
training.
In
conjunction
with
the
Customer
representatives,
EnerGov
shall
perform
the
following
tasks:
• Train-‐the-‐Trainer
Training
Sessions
Tyler
Responsibilities:
• Provide
5
(five)
man
days
of
End
User
/
Power
User
Training
• Provide
prompt
response
to
Customer’s
request
for
information
• Coordinate
with
Customer
to
define
training
logistics
and
schedule
Customer
Responsibilities:
• Provide
prompt
responses
to
Tyler’s
request
for
information.
• Ensure
personnel
critical
to
the
success
of
the
project
(subject
matter
experts
/
key
power
users,
etc.)
are
present
and
available
to
participate
in
admin
training
and
testing.
• Use
testing
scenarios
as
the
basis
for
the
end
user
system
training.
• Provide
facilities
suitable
to
training
needs.
Acceptance
Criteria:
• Technical
training
shall
be
complete
when
training
sessions
are
fully
utilized.
*
Tyler
reserves
the
right
to
invoice
the
Customer
for
all
training
services
on
a
weekly
basis
post
onsite
training
services
rendered.
*
Go-‐Live
(Production)
will
not
commence
until
all
Training
phase
sign-‐offs
have
been
completed.
C6 - 27
13
Production
/
Post
Production
Support
This
phase
of
the
EnerGov
project
is
comprised
of
onsite
Go-‐Live
and
post
production
support
and
consultative
advice
immediately
following
the
Go-‐Live
of
the
EnerGov
software.
This
is
also
a
transition
period
in
which
Tyler
will
transfer
from
the
project
team
to
the
EnerGov
account
services
(assigned
account
manager)
realm.
In
conjunction
with
the
Customer
representatives,
EnerGov
shall
perform
the
following
tasks:
• Comprehensive
Onsite
Go-‐Live
and
Post
Production
Support
• Final
Data
Conversion
Cutover
• Transition
from
EnerGov
project
team
to
EnerGov
Account
Management
Tyler
Responsibilities:
• Provide
10
(ten)
man
days
of
Go-‐Live
Support
• Provide
prompt
response
to
Customer’s
request
for
information.
• Coordinate
with
Customer
to
define
support
logistics
and
schedule
• Provide
on-‐site
resources
to
support
the
move
to
Production
effort
• Provide
final
data
conversion
and
systems
validation
• Assist
with
issues
that
may
arise
related
to
the
deliverables
in
the
SOW
and
this
contract
amendment.
Customer
Responsibilities:
• Provide
prompt
responses
to
Tyler’s
request
for
information.
• Provide
technical
and
functional
user
support.
• Develop
and
maintain
a
post-‐production
issues
list
• Ensure
personnel
critical
to
the
success
of
the
project
(subject
matter
experts
/
key
power
users,
etc.)
are
present
and
available
to
participate
in
the
go-‐live.
Acceptance
Criteria:
• System
Go-‐Live
shall
be
completed
when
the
software
is
moved
into
the
live
environment.
• Production
support
shall
be
complete
when
onsite
days
are
exhausted.
• Official
transition
from
Tyler
project
team
to
Tyler
Account
Management
performed.
*
Tyler
reserves
the
right
to
invoice
the
Customer
for
all
training
services
on
a
weekly
basis
post
onsite
production
and
post-‐
production
support
services
rendered.
C6 - 28
14
ACCEPTANCE
Project
phases
are
dependent
on
completion
of
the
previous
phase
and
will
not
be
started
without
a
completed
sign-‐off
for
all
previous
phases
of
the
project.
A
conditional
sign-‐off
by
Customer
will
be
required
at
the
conclusion
of
each
project
phase
(Assess/Define,
Configure/Review,
UAT,
Training,
Go-‐Live).
The
sign
off
at
the
conclusion
of
each
project
phase
shall
be
conditioned
on
the
Go-‐Live
phase
being
acceptable
to
the
Customer.
The
services
contracted
for
in
this
SOW
will
be
considered
accepted
when
all
deliverables
defined
in
the
Deliverables
/Work
Description
section
have
been
unconditionally
accepted
by
Customer
STATEMENT
OF
WORK
SIGNATURE
Customer
acknowledges
that
it
has
read
this
SOW,
understands
it
and
agrees
to
be
bound
by
its
terms
and
conditions.
The
parties
agree
that
this
Agreement
cannot
be
altered,
amended
or
modified,
except
in
writing
that
is
signed
by
an
authorized
representative
of
both
parties.
ACCEPTED
BY:
ACCEPTED
BY:
Tyler
Technologies
Name:
Name:
Signature:
Signature:
Title:
Title:
Date:
Date:
C6 - 29
Page intentionally left
blank.
C6 - 30
FROM: Steve Gesell, Chief of Police
Prepared By: Melissa Ellsworth, Senior Administrative Analyst
SUBJECT: FY 2014-15 GRANT APPLICATION FOR OFFICE OF TRAFFIC SAFETY
SELECTIVE TRAFFIC ENFORCEMENT PROGRAM
RECOMMENDATION
1. Authorize the Police Department to submit a grant application to the Office of Traffic Safety for
a FY 2014-15 Selective Traffic Enforcement Program (STEP) not to exceed $250,000.
2. If the grant is awarded, authorize the Chief of Police to execute all grant related documents and
authorize the appropriation of the grant amount.
DISCUSSION
The California Office of Traffic Safety (OTS) provides grant funding to agencies every year. These
programs are aimed at preventing deaths and injuries on our roadways through special enforcement
and public awareness efforts. Grant funding will aid in the City’s ongoing effort to improve traffic
safety and quality of life.
Specifically, the OTS Selective Traffic Enforcement Program (STEP) grant will continue to provide
funding for the night time DUI police officer for the San Luis Obispo Police Department for FY
2014-15. Currently, the department is receiving funding through an existing OTS AVOID grant for
FY 2013-14 for this position which started on October 1, 2013.
Overview of Position
The grant funded position will be responsible for identifying areas where DUI incidents are
prevalent and perform enforcement activities in these areas for the specific purpose of reducing DUI
related incidents. Other patrol officers will still be expected to continue their own DUI enforcement
as part of their regular patrol function while allowing additional specific DUI enforcement to occur
by the DUI officer.
The night time DUI Officer’s duties include, but are not limited to:
1. Enforcement of DUI related laws.
2. Provide DUI related training at briefings.
3. Provide support to Patrol in specific DUI related cases.
4. Participate in community outreach activities which could include public speaking as to the
dangers of driving while intoxicated.
5. Track and maintain statistical data to meet the obligations of the grant and other
12-10-13
C7 - 1
Grant Application for OTS STEP Funding Page 2
departmental purposes.
Grant Application
The grant application is due on January 15, 2014. The following are a list of items the department
will be including in the request for funding:
1. Salary and Benefits (for a period of 12 months) for the night time DUI police officer.
2. Overtime to fund department participation in the following:
a. Two DUI Checkpoints
b. Twenty Saturation Patrols
c. Six Distracted Driving Enforcement Operations
d. Twelve Traffic Enforcement Operations
3. Travel costs for a DUI Training Course and ARIDE (Advanced Roadside Impaired
Driving Enforcement) Training
4. Equipment such as:
a. Radio console for existing DUI trailer.
b. LIDAR replacements for motorcycles. LIDAR is a remote sensing technology
used by traffic officers to enforce speed limits throughout the City.
c. Red Light Notification Devices, these are designed to assist traffic officers in
apprehending red light violators. The light is attached to the back of a signal
light and only becomes activated when the traffic light turns red. The officer
observing can gain a better perspective of the intersection and any motorist who
crosses the limit line after the light has turned red.
CONCURRENCES
The Director of Finance & Information Technology concurs with this recommendation.
FISCAL IMPACT
City matching funds are not required by the grant. Although grant funding is already secured for
FY 2013-14; funding in subsequent years will be requested through the grant application process on
an annual basis. Upon the conclusion of the grant, and if the department is not awarded grant
funding in the following fiscal years, it is anticipated that the position would be absorbed into the
department through attrition.
ALTERNATIVE
Council may direct staff not to submit an application. Staff does not recommend this alternative as
funding will aid in the City’s ongoing effort to improve traffic safety and quality of life. The grant
objectives are aimed at preventing deaths and injuries on our roadways through special enforcement
and public awareness efforts.
T:\Council Agenda Reports\2013\2013-12-10\FY 14-15 Grant Applicaion for Office of Traffic (Gesell-Ellsworth)\CAR OTS STEP Grant App 14-
15.docx
C7 - 2
FROM: Daryl Grigsby, Public Works Director
Prepared By: Robert Horch, Parking Services Manager
SUBJECT: PARKING SERVICES DIVISION ORGANIZATIONAL ASSESSMENT REQUEST
FOR PROPOSAL
RECOMMENDATION
1. Authorize the issuance of a Request For Proposal (RFP) for consulting services to prepare an
organizational assessment for the Parking Services Division; and
2. Authorize the City Manager to execute an agreement of up to $45,000 to perform the
organizational assessment.
DISCUSSION
Background
As part of the FY 2013-15 Financial Plan, Council approved an organizational assessment of the Parking
Services Division (Attachment 1, Financial Plan Excerpt).The purpose of the organizational assessment
is to look at existing operations, staffing, service levels, and to determine whether resources align with
expectations and workload. The scope of work for the assessment includes: internal and external
stakeholder interviews, review of documents and processes, comparisons with similar organizations and
accepted parking service standards, analysis of existing and future parking demands, and a final report
with recommendations for change. The final report will be the basis for any changes to operations,
customer service, staffing levels, organizational structure, and parking services strategies moving
forward. This report will be delivered in time to inform the 2015-2017 Financial Plan.
Staff recommended this as part of the 2013-15 Financial Plan because the 2011 Public Works
Department-wide organizational assessment did not include a comprehensive review of the Parking
Division’s structure. In addition, there have been substantial changes and expansion of the workload
within the Parking Division since the audit was completed. Below is a list of the changes that have
occurred since the 2011 Public Works assessment.
• Neighborhood parking enforcement expanded to seven days per week
• Downtown parking enforcement expanded to Sundays
• Installation and maintenance of 400 credit card compatible parking meters
• Initiation of several major policy evaluations including regulation of oversized vehicle and how
to manage shared parking in city-owned parking structures.
For more information on changes and expansion of workload within the Parking Division please see
Attachment 1: Financial Plan Excerpt, Parking Services Division Organizational Assessment.
Meeting Date
Item Number 12/10/13
C8 - 1
Parking Services Organizational Assessment RFP Page 2
Project Scope of Work
The assessment will identify opportunities for improvements in each of the following general areas.
More detail is provided in the attached Request for Proposal (Attachment 1).
Analysis and evaluation of the Division’s organizational structure
Effectiveness and capacity of parking operations and systems
Best management practices and accepted standards of comparable agencies
Existing and future customer service needs
Parking trend analysis
Supply and demand of parking in the downtown area
Recommendations for change
CONCURRENCES
The Human Resources Department has reviewed the RFP and concurs with the proposed scope of work.
FISCAL IMPACT
This organizational assessment is funded through the Parking Enterprise Fund and approved in the 2013-
2015 Financial Plan with an allocation of $45,000 for the assessment and $48,600 in temporary staffing
in order to complete the assessment.
ALTERNATIVES
Do not approve the RFP and delay the assessment. The City Council could choose to defer the
organizational assessment for the Parking Services Division. Staff does not recommend this alternative
as the project was approved in the 2013-15 budget and temporary staff has been hired to assist with the
assessment. In addition, the organizational assessment is timely because it will identify the resources
needed for the division’s success and prepare for upcoming retirements.
ATTACHMENTS
1. Financial Plan Excerpt, Parking Division Organizational Assessment SOPC
2. Request for Proposal
t:\council agenda reports\2013\2013-12-10\rfp parking org assessment (grigsby-horch)\council agenda report draft.docx
C8 - 2
SIGNIFICANT OPERATING PROGRAM CHANGE -TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
Summary of Change: 1.Conduct an organizational assessment of the ParkingServices divisionand 2. Add a temporary
part-time position for 18 monthsin 2013-14 & 2014-15to support the workload of Parking Services until the
organizational assessment can fully define needs for theprogram.
Fiscal Impact: The Parking Services organizational assessment will cost theParking Enterprise Fund$45,000 in 2013-
14 and the staffing backfill will increase staffing costs by $32,400in 2013-14 and $16,200 in 2014-15.
Service Level Impact: This recommendation provides foran assessment of Parking Services staffing levelsand addresses
interim staffing needs pending the outcome of theassessment.
KEY OBJECTIVES
1.Assessthe organizational structure of the Parking Services division to determine the adequacy of existing staff
resources and opportunities for reorganization.
2.Plan for the eventual retirement of the Parking Services Manager and other long time Parking Services staff.
3.Provide temporary staff resourcestoassist Parking Services during the organizational assessment and assist with
some of the dutiesand workload.
EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE
The Parking Services division has essentially maintained the same level of full-time staffing in the last 15 years while
the workload has increased. Notwithstanding the additional 0.5 FTE of Principal Transportation Planner added as part
of 2011-13budget reduction strategies there have only been increases to part-time staff during the sameperiod.
Unfortunately due to staffing shortagesin the Transportation divisionand unforeseen demands on transportation
planning projects, the Principal Transportation Planner has been unable to provide 50% of the time onparking related
projects. As a result there are inadequate resources to address the needs within Parking Services.
Atemporary part-time position will provide assistance with an organizational assessment of Parking Services in
addition to assisting withsome of the workloadidentified in this request.It is anticipated that the organization
assessment of the ParkingServices Division will be completed in 18 months with recommendations for staffing from
that point forward.
The temporary position will assist the Parking Managerwith the organizational assessment and other duties such as:
a.Attending and representing the City at stakeholdermeetings with groups such as Residents for Quality
Neighborhood meetings, Neighborhood Services meetings(increased by Neighborhood Wellness Major City
Goals), etc.
b.Assistingwith the processing of new Residential Permit Parking District applications.
c.Providing assistancewith Railroad Square parking agreements, parking plan, and enhancements to the parking
area.
d.Assisting with the managing ofparking leases including 4office leases at the Marsh Street Structure, residential
leases for 5 units around parking Lot 14 (future location of the Palm Nipomo parking structure, trash leases in
parking Lot 2, and the 5 to 6 Railroad Square parking service area leases.
e.Developing ordinances and resolutions to address such things as new surcharges on parking fines and new State
mandated rules on parking at broken meters.
f.Assisting with project management for planned projects, emergency projects, and otherspecial duties. Planned
projects include parking lot resurfacing, the Marsh Street expansion painting project, fire alarm testing, 919 Palm
Street structure stairwell retrofit, parking structure access control upgrades to explore credit card acceptance,
expanding the installation of the credit card meters downtown.
g.Assistingwith budget preparationand analysis.
C8 - 3
SIGNIFICANT OPERATING PROGRAM CHANGE -TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
Over the last 15 years the organizational structure of the Parking Services division has remained largely unchanged
aside from a part-time enforcement position for weekend enforcement added as part of the Neighborhood Wellness
Goaland the 0.5 FTE of the Principal Transportation Planner. However, over that same time period there have been
substantial changes in the function and scale of the division. The most notable changes include:
1.Constructionand operation of 341new parking spaces in the Marsh Street Structure Expansionand Parking
Lot 4 beneath the expansion.
2.The development and oversight of 2,000s.f. of office space and public restrooms constructed as part of the
Marsh Street expansion.
3.Construction and operation of 242new parking spaces in the 919Palm Street Structure.
4.Planning and design on the proposed parking structures at Nipomo and Palm.
5.The purchase and oversight of five dwelling units located within the Palm Nipomo parking structure project
area.
6.The management and oversight of 134 new parking spaces as part of the Railroad Transportation Center
development and 16new parking spaces as part of Phase 1 of the Chinatown development.The addition of 5
new parking districts which added supportfor 400 additional households.
7.The development and implementation of the Access and Parking Management Plan.
8.Neighborhood parking enforcement expanded to seven days a week.
9.Downtown parkingenforcement expanded to Sundays.
10.The installation and maintenance of 400 credit card accepting parking meters.
11.An increase of more than 100%in parking appealssince 2000(918 parking appeals in 2000 to 2,200 in
2013).
12.An increase ofmore than 200%in citation hearings since 2000(44 citation hearings in 2000 to 150 in 2013).
13.The Parking Services Manager being responsible for the Parking Enterprise Fund budget and analysis.
14.The Parking Services Manager assigned the “Downtown Champion” role adding public relations for all
things relating to the downtown.
Staff is proposing an organizational assessment of the Parking Division in 2013-14to thoroughly evaluate staffing
levels and identify any opportunities for reorganizationand efficiencies. In the interim,staff is recommending that a
temporarypart-timeposition (City Worker 13)befunded for an 18-monthperiod.This position will assist the Parking
Manager and assist with projectmanagement.
Parking Organization Assessment
Why recommend an organizational assessment of the Parking Division so soon after the 2011 Public Works
performance audit? Overall staff is recommending this assessment because the 2011 audit did not provide a
comprehensive organizational assessment specific to the Parking Divisionand there have been substantial changes
and expansion of the workload within the Parking Division since the audit was completed.
The 2011 audit was a management and performance study of the entire Public Works Department and due to that
extensive scope it was limited to only a cursory review of the Parking Services division within the context of the
whole Department. The performance audit did provide valuable procedural recommendations such as having finance
conduct a “spot audit” of cash handling, using high security locks for parking meters, and consideringthe use of pay
stations for the downtown. However, with the number of parking meters, structures, and citations as the only
measures used to evaluate the organizational structure a comprehensive organizational analysis specific to the Parking
Services division was not provided. Most importantly, since the audit was completed there have been substantial
changes in the fundamental duties and operations of the Parking Services Division. In 2011 after the Matrix study was
completed the Parking Services operating hours were expanded to evenings along with of the scope of duties being
expanded to neighborhoods. In addition in 2012 the operating hours were also expanded to Sundays. The combination
of these twochanges has resulted in the Parking Services Division evolving into a 7 days a weekoperation absent an
evaluation of the cumulative effects on operations and organizational structure.
C8 - 4
SIGNIFICANT OPERATING PROGRAM CHANGE -TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
GOAL AND POLICY LINKS
1.2013-15Major City Goal for Neighborhood Wellness
2.Parking & Access Management Plan
3.Revenue Management Operating Program
4.Parking Management & Demand Reduction Operating Program
5.City of San Luis Obispo Municipal Code Titles 10 & 12
6.California Vehicle Code Sections40200 -40230
PROGRAM WORK COMPLETED
The Principal Transportation Planner position has already been partially functioning in the capacity recommended as part
of the 2011-13Financial Plan.
ENVIRONMENTAL REVIEW
There are no constraints or environmental review requirements.
PROGRAM CONSTRAINTS AND LIMITATIONS
This SOPC request will require additional funding within the Parking Enterprise Fundand a temporary position will be
more difficult to retain than a permanent position.Additionally, hiring apart-time temporary City Worker position will
place additonal oversight and supervision responsibilitieson the Parking Manager. Finally, a part time position will be
more limited in the responsibilities the position can assume due to limited work hours.
STAKEHOLDERS
City residents, business owners, motorists, and the Downtown Association are stakeholders in this request. In addition an
organizational assessment will require assistance from the Human Resources Department.
IMPLEMENTATION
Task Date
1.Issue RFP for Parking Services division organizational assessment
2.Recruit for a part-time temporary City Worker 13 in the Parking Services division
August2013
July 2013
3.Hire part-time temporary City Worker 13in Parking Services divisionSeptember 2013
4.Hire consultant for the Parking Services organizational assessment
5.Present recommendations
October 2013
May 2014
KEY PROGRAM ASSUMPTIONS
1.Parking Fundfinancial support within the Parking Services division.
2.Qualified applicantsfor contract staff position and the Parking Services organizational assessment.
3.Re-definedDowntown Champion dutiesare reassigned to the Assistant City Manager in orderfor the Parking
Managertoassist with the organizational assessment and supervise the part-time temporary City Worker 13.
4.Hiring a temporary part time position will only be an interim solution toaddress current staffing shortages in the
division and therefore this request doesnot provide for the ability to take on dutiesbeyond those outlinedabove.
C8 - 5
SIGNIFICANT OPERATING PROGRAM CHANGE -TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
PROGRAM MANAGER AND TEAM SUPPORT
Program Manager:
Parking Services Manager
Project Team:
Public Works Administration, Parking Services,and Human Resources
ALTERNATIVES
1.Continue the Status Quo.No additional staffing could be hired until after the organizational assessmentand/orno
organizational assessment undertaken. However this is not recommended because the existing situation is not
providing the resources needed for the division to be successful.
2.Defer or Re-Phase the Request.These changes could be deferreduntil a later date. This would prolong improving
the division’s organizationand not prepare the division for upcoming retirements.
3.Implementation in a Different Way.Instead of hiringatemporary part timeposition, the position could be filled as a
full time contract benefited position.This alternativemay result in a better pool of applicants, but would be at an
increased cost to the Parking Fund.
4.Existing Program Evaluation.An evaluation of the existing program is being recommended as part of this SOPC.
OPERATING PROGRAM
50600-Parking Enterprise Fund
COST SUMMARY
The Parking Enterprise Fund organizational assessment will have a one-time cost of $45,000 in 2013-14.Staffing a part-
time temporary position for a period of 18 months will cost$32,400 in 2013-14 and $16,200 in 2014-15.
PARKING ENTERPRISE FUND (510)
Line Item Description Account No.2013-14 2014-15
Staffing 32,400 16,200
Temporary Salaries 50600-7012 31,800 15,900
Medicare 50600-7044 500 200
Unemployment Insurance 50600-7046 100 100
Contract Services 45,000 0
Contract Services (Org Assessment)50600-7227 45,000 0
Total Operating Costs 77,400 16,200
C8 - 6
The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Finance Department, 990 Palm Street San Luis Obispo, CA 93401
Notice Requesting Proposals for
ORGANIZATIONAL ASSESSMENT OF THE PARKING SERVICES DIVISION PER
SPECIFICATION NO. 91282
The City of San Luis Obispo is requesting proposals from qualified vendors to conduct an
organizational assessment of the Parking Services Division per Specification No. 91282. All
proposals must be received in hard copy by 5:00 P.M. on January 31, 2014 to 990 Palm Street,
San Luis Obispo, CA 93401 Attention: Traci Kawaguchi.
Proposals received after said time will not be considered. Proposals shall be submitted using the
forms provided in the specification package.
Specification packages and additional information may be obtained for free on the City’s Web
site at www.slocity.org/publicworks/bids.asp or by contacting Alexander Fuchs at
afuchs@slocity.org or by phone at (805) 781-7553.
C8 - 7
Specification No. 91282
TABLE OF CONTENTS
A. Description of Work 1
Project Overview
Background
Project Strategy
Scope of Services
Deliverables
Desired Consultant Qualities
B. General Terms and Conditions 8
Proposal Requirements
Contract Award and Execution
Contract Performance
C. Special Terms and Conditions 13
Contract Term
Estimated Quantities
Proposal Content
Proposal Evaluation and Selection
Proposal Review and Award Schedule
Unrestrictive Brand Names
Start and Completion of Work
Accuracy of Specifications
D. Agreement 19
E. Insurance Requirements 21
F. Proposal Submittal Forms 23
Proposal Submittal Summary
Proposal Submittal Summary Alternative
References
Statement of Past Contract Disqualifications
G. Bidder List 29
H. Appendix A 30
I. Appendix B 31
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Section A
DESCRIPTION OF WORK
PROJECT OVERVIEW
The City of San Luis Obispo’s Parking Services Division is seeking a consultant to perform an
objective organizational assessment to determine the adequacy of existing staff resources and
opportunities for reorganization. Specifically, the Division is interested in determining what
aspects of the organizational structure need adjustment in order to continue to provide a high
level of service that meets City Council and City residents’ expectations. The ideal consultant
will have extensive experience specific to parking services and enforcement such as parking
structures, on-street parking meters, surface parking lots, and residential parking district
management, operations, and maintenance. Also the ideal candidate will have experience with
staffing requirements for parking citation adjudication.
The Division has maintained the same staffing level over the last 15 years while the workload
has increased significantly. There will continue to be service and workload increases in the future
including a new parking structure that requires staffing analysis. Ensuring the Division is
appropriately structured to continue to provide a high level of service and respond effectively to a
changing environment is critical to its long-term success. To date, there has never been an
organizational assessment conducted specific to the City’s Parking Services Division. Staff from
Parking Services Division and the Public Works Department will provide technical liaison
support to the consultant.
BACKGROUND
The City of San Luis Obispo is a charter city governed by a five-member City Council and is
organized into a Mayor-Council-City Manager form of municipal government. The City of San
Luis Obispo is dedicated to the best use of resources to fulfill identified community goals and
needs. The mission of the Parking Services Division is to provide equitable and high-quality
parking services to the citizens, visitors, and businesses in the City of San Luis Obispo.
Public parking organized in the City of San Luis Obispo in 1947 when parking meters were first
introduced. In 1975, the Parking Enterprise Fund was established to account for parking revenues
and expenditures separate from the General Fund. The main management and enforcement of
parking was moved from the Police Department to Public Works Department under
Transportation and Development Review in the 1980s. Since that time the management,
operation, and substantial enforcement of parking has been its own division.
The Parking Services Division includes 22.0 full-time equivalent (FTE) staff, 12.0 of which are
temporary parking attendants while the remaining are administrative staff. A copy of the Parking
Services Division’s organizational chart is attached to this RFP (See Appendix A). The 10.0 FTE
administrative staff includes a 0.5 FTE Principal Transportation Planner that was added during
the FY 2011-13 Budget and a 0.5 FTE part-time temporary Assistant to Parking Services
Manager added in current budget to assist with this assessment. A copy of the Significant
Operating Program Change (SOPC) document for the organizational assessment and staffing
retention is attached to this RFP (See Appendix B).
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Parking Services Major Functions
The Parking Services Division is principally a vertically integrated division with all of the major
functions listed below performed almost entirely by in -house employees. The Division performs
five major functions: (1) compliance and enforcement, (2) revenue management, (3)
maintenance, (4) structure operations, and (5) parking management and demand reduction.
Parking management and demand reduction is different from the other major functions in that it
focuses on the development of new parking strategies while the former four major functions
focus on implementation of existing parking strategies.
Compliance and enforcement refers to the patrolling of on-street and off-street parking including
the downtown, residential permit districts, Railroad Square district, and the overall city as well as
the issuance of citations. Compliance and enforcement is currently accomplished by three full-
time Parking Enforcement Officers and two part-time Parking Enforcement Officers. Aside from
compliance and enforcement, Parking Enforcement Officers duties also include reporting
damaged or broken parking meters, patrolling parking structures, and assisting the public with
parking and non-parking related issues.
Revenue management refers to the collection and adjustment of fees and fines pertaining to
parking meters, citations, parking permit sales, and lease payments. These functions are currently
performed by various Division employees and an outside contractor. Maintenance refers to any
and all repairs that may occur during the lifetime of parking meters and parking structures
including janitorial maintenance. Parking meter repair is performed by 1.0 FTE Parking Meter
Repair Worker and two outside contractors. Parking structures are maintained by 1.0 FTE
Parking Coordinator, 10.5 FTE Parking Attendants, and four outside contractors.
Structure operations refer to all functions involved in operation of City parking structures
including: collection of fees, scheduling of parking booth staff, equipment maintenance, elevator
maintenance, deck sweeping, janitorial services, landscape maintenance, and various other
functions. Structure operations are overseen by the Parking Coordinator. Parking management
and demand reduction refers to development and implementation of strategies for the use of
existing and future parking spaces including the management of shared parking in city-owned
parking structures. Parking management and demand reduction is handled primarily by the
Parking Services Manager through inter-departmental coordination.
The Parking Services Division administrative staffs have a relatively wide range of duties
whereby one employee will be involved in several of the major functions described above. The
purpose of the major functions of the Parking Services Division is to implement the Parking
Management goals, policies, and actions set forth in the Access and Parking Management Plan.
The Access and Parking Management Plan, amended in 2011, is a program under the Parking
Management section of the City of San Luis Obispo’s General Plan Circulation Element, adopted
in 1994 and revised in 2006. The Circulation Element is currently being updated; however, the
update process is not expected to significantly affect the Parking Services Division’s operations
or functions.
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Existing Conditions
Parking Services Division is responsible for on-street and off-street public parking facilities
including: 13 parking lots, 3 parking structures, 8 residential parking permit districts, and over
1,500 parking meters on-street and in parking lots/structures. Table 1.1 below gives a complete
inventory of all the parking facilities. Parking Services Division also oversees 15,000 sq. ft. of
retail space, 2,100 sq. ft. of office space, and three residential parcels that total 22,000 sq. ft.
There is an additional surface parking lot owned by the Division however, the lot is comprised of
only six parking spaces and is currently leased for use by the adjacent commercial property for a
monthly fee.
Table 1.1: Parking Facilities
Parking Inventory
Surface Lot Parking # of Spaces # of Metered Spaces
13 lots 788 392
Structure Parking # of Spaces # of Metered Spaces
3 structures 1,177 0*
On-Street Parking # of Spaces # of Metered Spaces
16 streets in downtown and environs
adjacent to downtown 1,125 1,125
Total # of Parking Spaces 3,090 1,517
Permit Inventory
Residential Permit Parking Districts # of Households # of Permits
8 parking districts 756 1,512
*Surface parking lot #4 is located on the 1st floor of the Marsh St. parking structure; however, the metered spaces are not counted
as parking structure spaces but as surface lot spaces.
Future Development in the Downtown Area
Currently, there are six approved developments in the downtown area: (1) Garden Street Terraces
project, (2) Chinatown project, (3) Pacific Courtyards, (4) Monterey Place aka Leitcher House,
(5) Marsh Street Commons, and (6) 590 Marsh St. aka Foster’s Freeze. The Marsh Street
Commons is the only project under construction, the rest of the projects are in various stages of
development and/or approvals. The Garden Street Terraces project will be constructed on
existing surface lot #2 and the Chinatown project will be constructed on existing surface parking
lots #3 and #11. This will eliminate an estimated 212 surface parking lot spaces, 204 of which
are metered spaces. The other projects would not eliminate any existing public parking but they
will increase the demand for parking downtown.
City Council has approved the construction of a new parking structure at the corner of Palm
Street and Nipomo Avenue where surface parking lot #14 is currently. The parking structure will
add an estimated 445 parking spaces but existing lot #14 contains 79 total spaces which means
there will be a net increase of 366 parking spaces. According to the Parking Enterprise Fund’s
FY 2013-15 Financial Plan, construction of the new parking structure is projected to begin during
the 2017-18 fiscal year. The City has yet to move forward with the environmental review and
construction of the new parking structure due to the unknown aggregated future demand for
parking services in the downtown area.
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PROJECT STRATEGY
Organizational Analysis
The consultant will review the Parking Services Division organization, structure, and work
processes. The consultant will assess the Parking Services Division to determine whether
resources align with expectations and workload. Furthermore, the consultant will determine if
resources are appropriately distributed to meet expectations, workload requirements, and
personnel competencies are properly organized to efficiently carry out responsibilities. The
consultant will conduct interviews, review documents and processes, make comparisons with
comparable organizations or standards, and compile the information into a final report with
strategies for improvement.
Ensure Involvement of Stakeholders/On-Site Meetings
The consultant shall perform face to face interviews and meetings with City personnel from
Parking Services, Administration, Community Development, Public Works, and Human
Resources. The consultant must be present at least one public meeting regarding the Parking
Services Division’s organizational assessment in order to answer questions and provide technical
information. Parking Services staff will provide a list of stakeholders that should be invited to
any and all public meetings. The consultant must also be present at one City Council Meeting
when the Parking Services Division presents the organizational assessment report findings and
recommendations to City Council. The consultant will be required to prepare meeting materials
in advance of all meetings. All associated costs for on-site interviews and meetings including and
not limited to travel, lodging and incidental must be included in cost of services.
SCOPE OF SERVICES
The consultant is expected to propose their own scope of services as part of their proposal;
however, Parking Services Division has identified certain issues of particular interest which
should be viewed as a starting point for proposers’ scopes of services. Below is an outline of
those issues. The consultant will also be responsible for schedules, budgets, progress reports, and
invoicing over the course of the assessment.
1. Organizational Structure and Management
a. Analyze and evaluate the organizational structure of the Parking Services Division
including:
i. Reporting relationships
ii. Span of control for each staff person
iii. Whether staffing levels are adequate to meet the existing service level
needs of the residents and visitors of San Luis Obispo.
iv. If staff professional skills are adequate to perform Parking Services duties
v. Whether workload for existing staff is distributed properly
vi. Whether job title and job description of staff accurately reflects the duties
performed
vii. Whether the workload necessitates an additional full-time management
position
b. Review and comment on the organizational structure and management of up to
five (5) comparable parking agencies
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c. Makes recommendations regarding organizational restructuring that will improve
service levels and efficiency of the Division
2. Operations and Systems
a. Determine if the existing Parking fund has the capacity to retain additional part-
time and/or full-time staff(s)
b. Identify future operational staffing needs in the context of anticipated
future/planned development in the downtown area including the Palm Nipomo
Structure
c. Evaluate existing parking systems to examine their effectiveness
d. Identify the extent to which new technologies can improve efficiency and
customer service
e. Propose new equipment/technology that will open staff to be utilized elsewhere in
the organization
f. Prepare recommendations for inclusion in the FY 2015-2017 Financial Plan
3. Best Management Practices and Performance Measures
a. Identification of performance measurement tools for each major operation
b. Assess organizational activity and include benchmarking against accepted
standards and up to five (5) comparable parking agencies
4. Customer Service
a. Review opportunities to better meet the current and future service needs of the
community
b. Assess cash management practices specifically, how Parking Services receives
payment for parking permits and parking citations
c. Review opportunities for cost reductions without reduction in service
5. Trend Analysis
a. Analyze current and future supply and demand for parking in downtown San Luis
Obispo
b. Analyze parking trends and needs in the context of anticipated future/planned
development in the downtown area including when the next parking structure will
be needed.
6. Recommendations for Change
a. Develop an implementation strategy plan based on assessment findings and
recommendations
b. Present prioritized recommendations for change to City staff
c. Recommendations will have specific timeline to start and complete, a responsible
party, estimated cost, and funding source
d. Items should be ranked in priority order and separated into short-term (1-2 years),
mid-term (3-4 years), and long-term (5-7 years) changes
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DELIVERABLES
The consultant’s services will include, but are not limited to, the following:
Phase I: February 2014 – April 2014
1. Kick-off meeting with Parking Services
2. Draft approach plan to complete the work which will include: scope of services, project
timeline, stakeholder input schedule, and budget
3. Review, analysis, and evaluation of existing conditions of the Division
4. Begin stakeholder input meetings
Phase II: May 2014 – September 2014
1. Development of best management practices and performance metrics
2. Analysis of existing and future parking trends and needs
3. Completion of stakeholder input and incorporation of input into project deliverables
4. Preparation of recommendations for change (short-term and long-term items)
5. Draft written report
Phase III: October 2014 – December 2014
1. Final written report including implementation strategy plan
2. Presentation of final written report to City Council
3. Post-presentation consultation regarding implementation strategy plan (if necessary)
Draft and final written reports will include:
• Executive summary
• Purpose and review of scope of services
• Existing conditions
• Assessment of organizational structure
• Best management practices and performance measures
• Trends Analysis
• Findings
• Conclusions and recommendations
• Implementation strategy plan
• Appendices
BUDGET
Total project budget of $45,000. Proposals shall not exceed the project budget. Optional tasks
may be proposed if necessary to stay within budget.
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DESIRED CONSULTANT QUALITIES
The consultant must have experience with municipalities that includes the following:
1. A proven track record analyzing the operations of municipal parking services
organizations resulting in the development and implementation of recommendations that
have improved the long-term effectiveness and efficiency of operations.
2. Specific knowledge and understanding of public parking operations, staffing, and
associated service levels.
3. Experience and expertise in identifying and assisting to implement recommendations
in organizations where many or all employees are subject to employee collective
bargaining agreements and civil service rules.
4. A demonstrated capability and commitment to assisting the implementation of
identified recommendations.
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Section B
GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet
all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By
virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Proposal Submittal. All proposals must be received in hard copy by 5:00 P.M. on January
31, 2014 to 990 Palm Street, San Luis Obispo, CA 93401 Attention: Traci Kawaguchi.
Bidders must include 5 hard copies of the proposal with only 1 sealed itemized cost
sheet separate from the proposal copies. Each proposal must be submitted on the form(s)
provided in the specifications and accompanied by any other required submittals or supplemental
materials. No FAX submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the proposer’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are
not required until contract award. The City’s insurance requirements are detailed in Section E.
4. Proposal Quotes and Unit Price Extensions. The extensions of unit prices for the quantities
indicated and the lump sum prices quoted by the proposer must be entered in figures in the
spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures.
The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount
stated by any proposer for any item are not in agreement, the unit price alone will be considered
as representing the proposer's intention and the proposal total will be corrected to conform to the
specified unit price.
5. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice
prior to the time specified for the proposal opening, by submitting a written request to the
Director of Finance for its withdrawal, in which event the proposal will be returned to the
proposer unopened. No proposal received after the time specified or at any place other than that
stated in the "Notice Inviting Bids/Requesting Proposals" will be considered. All proposals will
be opened and declared publicly. Proposers or their representatives are invited to be present at
the opening of the proposals.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed
to make or file, or to be interested in more than one proposal, except an alternative proposal
when specifically requested; however, an individual or business entity that has submitted a sub-
proposal to a proposer submitting a proposal, or who has quoted prices on materials to such
proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to
other proposers submitting proposals.
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7. Cooperative Purchasing. During the term of the contract, the successful proposer will extend
all terms and conditions to any other local governmental agencies upon their request. These
agencies will issue their own purchase orders, will directly receive goods or services at their
place of business and will be directly billed by the successful proposer.
8. Communications. All timely requests for information submitted in writing will receive a
written response from the City. Telephone communications with City staff are not encouraged,
but will be permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
9. Proposal Retention and Award. The City reserves the right to retain all proposals for a period
of 60 days for examination and comparison. The City also reserves the right to waive
non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one
part of a proposal and accept the other, except to the extent that proposals are qualified by
specific limitations. See the "special terms and conditions" in Section C of these specifications
for proposal evaluation and contract award criteria.
10. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of proposers. Bidders will
provide, in a timely manner, all information that the City deems necessary to make such a
decision.
11. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a
written contract with the City within ten (10) calendar days after notice of the award has been
sent by mail to it at the address given in its proposal. The contract shall be made in the form
adopted by the City and incorporated in these specifications.
12. Insurance Requirements. The Contractor shall provide proof of insurance in the form,
coverages and amounts specified in Section E of these specifications within 10 (ten) calendar
days after notice of contract award as a precondition to contract execution.
13. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate
before execution of the contract. Additional information regarding the City's business tax
program may be obtained by calling (805) 781-7134.
CONTRACT PERFORMANCE
14. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out
and complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
15. Laws to be observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during its performance of the work.
16. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
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17. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges
and fees, and give all notices necessary. The Contractor shall obtain a City of San Luis Obispo
Business License.
18. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
19. Public and Employee Safety. Whenever the Contractor's operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the City,
furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other
devices and take such other protective measures as are necessary to prevent accidents or damage
or injury to the public and employees.
20. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured
or damaged resulting from the Contractor's operations, it shall be replaced or restored at the
Contractor's expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
21. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in the United
States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the work hereunder.
22. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination
in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
23. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes,
fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or
labor due to federal government restrictions arising out of defense or war programs, then the time
of completion may, at the City's sole option, be extended for such periods as may be agreed upon
by the City and the Contractor. In the event that there is insufficient time to grant such
extensions prior to the completion date of the contract, the City may, at the time of acceptance of
the work, waive liquidated damages that may have accrued for failure to complete on time, due to
any of the above, after hearing evidence as to the reasons for such delay, and making a finding as
to the causes of same.
24. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the materials, supplies, equipment or services provided by the
Contractor (Net 30).
25. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not
relieve Contractor of any of its obligations to fulfill its contract requirements.
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26. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
27. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall
not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or
degree with the performance of the work hereunder. The Contractor further covenants that, in
the performance of this work, no subcontractor or person having such an interest shall be
employed. The Contractor certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that, in
the performance of the work hereunder, the Contractor shall at all times be deemed an
independent contractor and not an agent or employee of the City.
28. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and
hold the City and its agents, officers and employees harmless from and against any and all claims
asserted or liability established for damages or injuries to any person or property, including
injury to the Contractor's employees, agents or officers that arise from or are connected with or
are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents,
officers or employees, in performing the work or services herein, and all expenses of
investigating and defending against same; provided, however, that the Contractor's duty to
indemnify and hold harmless shall not include any claims or liability arising from the established
sole negligence or willful misconduct of the City, its agents, officers or employees.
29. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
30. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor
in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days
specified in the notice, such shall constitute a breach of the contract and the City may terminate
the contract immediately by written notice to the Contractor to said effect. Thereafter, neither
party shall have any further duties, obligations, responsibilities, or rights under the contract
except, however, any and all obligations of the Contractor's surety shall remain in full force and
effect, and shall not be extinguished, reduced, or in any manner waived by the termination
thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed
from the beginning date in which the breach occurs up to the day it received the City's Notice of
Termination, minus any offset from such payment representing the City's damages from such
breach. "Reasonable value" includes fees or charges for goods or services as of the last
milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in
the Agreement payment schedule; compensation for any other work, services or goods performed
or provided by the Contractor shall be based solely on the City's assessment of the value of the
work-in-progress in completing the overall scope of work.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City's sole discretion, so as to permit a
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full and complete accounting of costs. In no event, however, shall the Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
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Section C
SPECIAL TERMS AND CONDITIONS
1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General
Terms and Conditions) of these specifications, the contract will be awarded to the lowest
responsible, responsive proposer.
2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City
receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time
of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the
bid will be deducted from the proposal by the City in calculating and determining the lowest
responsible, responsive proposer.
3. Labor Actions. In the event that the successful proposer is experiencing a labor action at the
time of contract award (or if its suppliers or subcontractors are experiencing such a labor action),
the City reserves the right to declare said proposer is no longer the lowest responsible, responsive
proposer and to accept the next acceptable low proposal from a proposer that is not experiencing
a labor action, and to declare it to be the lowest responsible, responsive proposer.
4. Failure to Accept Contract. The following will occur if the proposer to whom the award is
made (Contractor) fails to enter into the contract: the award will be annulled; any bid security
will be forfeited in accordance with the special terms and conditions if a proposer's bond or
security is required; and an award may be made to the next lowest responsible, responsive
proposer who shall fulfill every stipulation as if it were the party to whom the first award was
made.
5. Contract Term. The services identified in this specification will be provided to the City
between February 2014 and December 2014. The prices quoted for these items must be valid for
the entire period indicated above unless otherwise conditioned by the proposer in its proposal.
6. Contract Extension. The term of the contract may be extended by mutual consent for an
additional 90 days. During this extended period, unit prices may not be increased by more than
the percentage change in the US consumer price index for All Urban Consumers (CPI-U), from
March to March.
7. Estimated Quantities. The quantities indicated in the Detail Proposal Submittal Form are
estimates based on past purchasing experience, and will be used to determine the lowest overall
proposal. Actual quantities purchased during the period of this contract may vary from these
estimated amounts as required by the City.
8. Supplemental Purchases. Supplemental purchases may be made from the successful proposer
during the contract term in addition to the items listed in the Detail Proposal Submittal Form.
For these supplemental purchases, the proposer shall not offer prices to the City in excess of the
amounts offered to other similar customers for the same item. If the proposer is willing to offer
the City a standard discount on all supplemental purchases from its generally prevailing or
published price structure during the contract term, this offer and the amount of discount on a
percentage basis should be provided with the proposal submittal.
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9. Contractor Invoices. The Contractor shall deliver a monthly invoice to the City, itemized by up
to 20 cost centers, with attached copies of work order forms or detail invoices (standard color or
copy to be agreed upon) as supporting detail.
10. Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail
Proposal Submittal Form, as well as any supplemental items, from other vendors during the
contract term.
11. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general
quality levels. Such references are not intended to be restrictive. Proposals will be considered
for any brand that meets or exceeds the quality of the specifications given for any item. In the
event an alternate brand name is proposed, supplemental documentation shall be provided
demonstrating that the alternate brand name meets or exceeds the requirements specified herein.
The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and
the City shall be the sole judge in making this determination.
12. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and
conditions of this IFB or RFP package shall include delivery charges, to be delivered F.O.B. San
Luis Obispo by the successful proposer and received by the City within 30 days after
authorization to proceed by the City.
13. Start and Completion of Work. Work on this project shall begin within 15 calendar days after
contract execution and shall be completed within 365 calendar days thereafter.
14. Change in Work. The City reserves the right to change quantities of any item after contract
award. If the total quantity of any changed item varies by 25% shall be subject to negotiation
with the Contractor.
15. Recycled Products. A ten percent preference, not to exceed one thousand dollars per contract,
will be given to recycled products. The fitness and quality of the recycled product must be at
least equal to un-recycled products as determined by the City. The preference percentage shall
be based on the lowest price quoted by the supplier or suppliers offering non-recycled products.
Price preferences may be offered in excess of the ten percent ceiling established in this section if
it can be shown that purchase of a recycled product or material will result in greater long-term
savings to the City.
16. Submittal of References. Each proposer shall submit a statement of qualifications and
references on the form provided in the IFB/RFP package.
17. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding
any past governmental agency bidding or contract disqualifications on the form provided in the
IFB/RFP package.
18. State Cooperative Purchasing Program. The City of San Luis Obispo participates in the State
Cooperative Purchasing Program. As such, the City can purchase the items described in Section
A through this program. Accordingly, the City will purchase from the State or the lowest
responsible, responsive proposer, after allowing adjustments for the cost of pickup and/or
delivery from the State, adjustments for after-market modifications, and adjustments for sales tax
from local dealers, as it determines to be in its best interest.
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19. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Acknowledgement
b. Proposal submittal summary (Sealed in a separate envelope from other submittal
forms)
c. Certificate of insurance
d. References from at least three firms for whom you have provided similar services
e. Proposed Services
f. Statement of Past Disqualifications
g. Certification of consultant
Qualifications
h. Experience of your firm in performing similar services for Parking Services
organizations
i. Experience of the staff to be assigned to the project in performing similar services
j. Redundancy in the company of staff experienced in this type of work
k. Resumes of the individuals who would be assigned to this project, including any known
sub-consultants
l. Proximity and staffing levels of the nearest company office
m. Statement and explanation of any instances where your firm has been removed from a
project or disqualified from proposing on a project
n. Detailed list of services available directly from the company
o. Standard hourly billing rates for the assigned staff, including any sub-consultants.
Work Program
p. Description of your approach to completing the work.
q. Tentative schedule by phase and task for completing the work.
r. Estimated hours for your staff by name in performing each major phase of the work,
including sub-consultants.
s. Services or data to be provided by the City.
t. Any other information that would assist us in making this contract award decision.
Compensation
u. Proposed compensation and payment schedule tied to accomplishing key tasks.
Proposal Length and Copies
a. Proposals should not exceed 35 pages, including attachments and supplemental
materials.
b. The minimum font size is 11 point, with minimum left and right margins of one-inch, and
top and bottom margins of 0.7 inches.
c. Charts and other short form approaches to convey information are encouraged.
2. Proposal Submittal
a. Proposals must be received in hard copy by 5:00 P.M. on January 31, 2014 to 990
Palm Street, San Luis Obispo, CA 93401 Attention: Traci Kawaguchi in the format
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described in the RFP specifications and accompanied by any other required submittals or
supplemental materials.
3. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based
on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent experience in successfully performing similar services.
e. Proposed approach in completing the work.
f. References.
g. Background and related experience of the specific individuals to be assigned to this
project.
h. Proposed compensation, broken down by staff with an estimate of supplies needed to
provide the scope of services. Lump sum proposals will not be considered.
As reflected above, contract award will not be based solely on price, but on a combination of
factors as determined to be in the best interest of the City. After evaluating the proposals,
finalists may be invited to give a brief presentation on their proposal as well as a panel interview
with City staff. The City reserves the right to further negotiate the proposed work and/or method
and amount of compensation.
4. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule
for proposal review and contract award:
a. Issue RFP 12/12/13
b. Receive proposals 1/31/14
c. Complete proposal evaluation 2/10/14
d. Conduct finalist interviews 2/17/14
e. Finalize staff recommendation 2/19/14
f. Award contract 2/19/14
g. Execute contract 2/21/14
h. Start work 2/24/14
5. Ownership of Materials. All original drawings, plan documents and other materials prepared
by or in possession of the Contractor as part of the work or services under these specifications
shall become the permanent property of the City, and shall be delivered to the City upon demand.
6. Release of Reports and Information. Any reports, information, data, or other material given
to, prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of City and shall not be made available to any individual or
organization by the Contractor without the prior written approval of the City.
7. Copies of Reports and Information. If the City requests additional copies of reports, or any
other material in addition to what the Contractor is required to furnish in limited quantities as
part of the work or services under these specifications, the Contractor shall provide such
additional copies as are requested, and City shall compensate the Contractor for the costs of
duplicating of such copies at the Contractor's direct expense.
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8. Required Deliverable Products. The Contractor will be required to provide:
a. 10 copies of organizational assessment and strategic plan addressing all elements of the
scope of work. City staff will review any documents or materials provided by the
Contractor and, where necessary, the Contractor will be required to respond to staff
comments and make such changes as deemed appropriate.
b. One camera-ready original, unbound, each page printed on only one side, including any
original graphics in place and scaled to size, ready for reproduction.
c. When computers have been used to produce materials submitted to the City as a part of
the scope of work, the Contractor must provide the corresponding computer files to the
City, compatible with the following programs whenever possible unless otherwise
directed by the project manager:
• Word Processing Word
• Spreadsheets Excel
• Desktop Publishing InDesign
• Computer Aided Drafting (CAD) AutoCAD
Computer files must be on 3½", high-density, write-protected diskettes, formatted for use
on IBM-compatible systems. Each diskette must be clearly labeled and have a printed
copy of the directory. Alternatively, files may be emailed to the City.
9. Attendance at Meetings and Hearings. As part of the scope of work and included in the
contract price is attendance by the Contractor at up to 2 public meetings, not including one City
Council meeting, to meet with stakeholders and to present and discuss its findings and
recommendations. Contractor shall attend as many "working" meetings with staff as necessary in
performing scope of work tasks. These can be done through effective use of information
technology.
10. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each of the
alternatives, and discuss under what circumstances the City would prefer one alternative to the
other(s). If an alternative proposal is submitted, the maximum length of the proposal may be
expanded proportionately by the number of alternatives submitted.
11. Accuracy of Specifications. The specifications for this project are believed by the City to be
accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are
cautioned to undertake an independent analysis of any test results in the specifications, as City
does not guaranty the accuracy of its interpretation of test results contained in the specifications
package. In preparing its proposal, the proposer and all subcontractors named in its proposal
shall bear sole responsibility for proposal preparation errors resulting from any misstatements or
omissions in the plans and specifications that could easily have been ascertained by examining
either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the plans and specifications will be as determined by law, any patent
ambiguity or defect shall give rise to a duty of proposer to inquire prior to proposal submittal.
Failure to so inquire shall cause any such ambiguity or defect to be construed against the
proposer. An ambiguity or defect shall be considered patent if it is of such a nature that the
proposer, assuming reasonable skill, ability and diligence on its part, knew or should have known
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of the existence of the ambiguity or defect. Furthermore, failure of the proposer or
subcontractors to notify City in writing of specification or plan defects or ambiguities prior to
proposal submittal shall waive any right to assert said defects or ambiguities subsequent to
submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall not be
liable for costs incurred by the successful proposer to achieve the project’s objective or standard
beyond the amounts provided there for in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or
alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever,
Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors
shall continue to perform, irrespective of whether or not the ambiguity or defect is major,
material, minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore described
written notice within one (1) working day of contractor's becoming aware of the facts giving rise
to the dispute shall constitute a waiver of the right to assert the causative role of the defect or
ambiguity in the plans or specifications concerning the dispute.
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Section D
FORM OF AGREEMENT
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on February 21, 2014 by and
between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
[VENDOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on December 12, 2013, City invited requested proposals for an organizational assessment per
Specification No: 91282.
WHEREAS, pursuant to said invitation, Contractor submitted a proposal for consulting services that was
accepted by City for said organizational assessment and development of a strategic plan for the Parking Services
Division.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as
first written above, until acceptance or completion of said services.
2. INCORPORATION BY REFERENCE. City Specification No. 91282 and Contractor's
proposal dated [date], are hereby incorporated in and made a part of this Agreement. To the extent that there are any
conflicts between the City’s specification and this Agreement and the Contractor’s proposal, the terms of the City’s
specification and this Agreement shall prevail, unless specifically agreed otherwise in writing signed by both parties.
3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay
and Contractor shall receive therefor a fixed fee compensation in a total sum not to exceed $45,000.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by
this Agreement and the said specification and provide services as described in Exhibit [ ] attached hereto and
incorporated into this Agreement.
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5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon approval by the City Manager.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of
any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties
hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor Name
Address
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute
Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first above written.
ATTEST: CITY OF SAN LUIS OBISPO
________________________________ By: _____________________________________
City Clerk City Manager
APPROVED AS TO FORM: CONTRACTOR
________________________________ By: _____________________________________
City Attorney
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Section E
INSURANCE REQUIREMENTS
Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the performance
of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared
to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and
volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
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3. The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of
no less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
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Section F
PROPOSAL SUBMITTAL FORMS
PROPOSAL SUBMITTAL SUMMARY
The undersigned declares that she or he has carefully examined Specification No. 91282, which is hereby
made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the
proposing firm; and agrees to perform the specified work for the following cost quoted in full:
PROPOSAL ITEM: Organizational Assessment of the Parking Services Division
1. Organizational Structure and Management phase price
2. Operations and Systems phase price
3. Best Management Practices and Performance Measures phase price
4. Customer Service phase price
5. Trend Analysis phase price
6. Recommendations for Change phase price
Total Costs
Other:
TOTAL $
Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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PROPOSAL SUBMITTAL BID ALTERNATIVE-Additional Meeting(s)
PROPOSAL ITEM: This bid alternative is for any additional ON-SITE meeting not covered in this RFP.
This alternative will be used if any additional meetings are requested by the City of San Luis Obispo.
This proposal should include all costs, including but not limited to, travel, lodging, and incidentals.
Total Costs
Other:
TOTAL $
Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the
services included with the scope of the specifications. Attach additional pages if required. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
Do you have any disqualification as described in the above paragraph to declare?
Yes No
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty
of perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Representative
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Section G
PROPOSED BIDDER LIST
Bidder # Company Name Contact Email
1 CDM Smith Bill Hurrell hurrellwe@cdmsmith.com
2 Parking Design Group LLP David Vogel david@parkingdesigngroup.com
3 JR Parking Consultants LLC Janice Rhodes jyrhodes@gmail.com
4 Walker Parking Consultants Steffen Turoff steffen.turoff@walkerparking.com
5 Kimley-Horn Dennis Burns dennis.burns@kimley-horn.com
6 Carl Walker Mathew Inman minman@carlwalker.com
7 Nelson Nygaard Patrick Siegman psiegman@nelsonnygaard.com
8 Marlyn Group LLC Vicki Pero vpero@marlyngroupllc.com
9 Walter P. Moore Jacob Gonzalez jgonzalez@walterpmoore.com
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Section H
APPENDIX A
City of San Luis Obispo Parking System Organization
Parking Services Division Organization Chart
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Section I
APPENDIX B
SIGNIFICANT OPERATING PROGRAM CHANGE – TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
Summary of Change: 1. Conduct an organizational assessment of the Parking Services division and 2. Add a temporary
part-time position for 18 months in 2013-14 & 2014-15 to support the workload of Parking Services until the
organizational assessment can fully define needs for the program.
Fiscal Impact: The Parking Services organizational assessment will cost the Parking Enterprise Fund $45,000 in 2013-
14 and the staffing backfill will increase staffing costs by $32,400 in 2013-14 and $16,200 in 2014-15.
Service Level Impact: This recommendation provides for an assessment of Parking Services staffing levels and addresses
interim staffing needs pending the outcome of the assessment.
KEY OBJECTIVES
1. Assess the organizational structure of the Parking Services division to determine the adequacy of existing staff
resources and opportunities for reorganization.
2. Plan for the eventual retirement of the Parking Services Manager and other long time Parking Services staff.
3. Provide temporary staff resources to assist Parking Services during the organizational assessment and assist with
some of the duties and workload.
EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE
The Parking Services division has essentially maintained the same level of full-time staffing in the last 15 years while
the workload has increased. Notwithstanding the additional 0.5 FTE of Principal Transportation Planner added as part
of 2011-13 budget reduction strategies there have only been increases to part-time staff during the same period.
Unfortunately due to staffing shortages in the Transportation division and unforeseen demands on transportation
planning projects, the Principal Transportation Planner has been unable to provide 50% of the time on parking related
projects. As a result there are inadequate resources to address the needs within Parking Services.
A temporary part-time position will provide assistance with an organizational assessment of Parking Services in
addition to assisting with some of the workload identified in this request. It is anticipated that the organization
assessment of the Parking Services Division will be completed in 18 months with recommendations for staffing from
that point forward.
The temporary position will assist the Parking Manager with the organizational assessment and other duties such as:
a. Attending and representing the City at stakeholder meetings with groups such as Residents for Quality
Neighborhood meetings, Neighborhood Services meetings (increased by Neighborhood Wellness Major City
Goals), etc.
b. Assisting with the processing of new Residential Permit Parking District applications.
c. Providing assistance with Railroad Square parking agreements, parking plan, and enhancements to the parking
area.
d. Assisting with the managing of parking leases including 4 office leases at the Marsh Street Structure, residential
leases for 5 units around parking Lot 14 (future location of the Palm Nipomo parking structure, trash leases in
parking Lot 2, and the 5 to 6 Railroad Square parking service area leases.
e. Developing ordinances and resolutions to address such things as new surcharges on parking fines and new State
mandated rules on parking at broken meters.
f. Assisting with project management for planned projects, emergency projects, and other special duties. Planned
projects include parking lot resurfacing, the Marsh Street expansion painting project, fire alarm testing, 919 Palm
Street structure stairwell retrofit, parking structure access control upgrades to explore credit card acceptance,
expanding the installation of the credit card meters downtown.
g. Assisting with budget preparation and analysis.
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SIGNIFICANT OPERATING PROGRAM CHANGE – TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
Over the last 15 years the organizational structure of the Parking Services division has remained largely unchanged
aside from a part-time enforcement position for weekend enforcement added as part of the Neighborhood Wellness
Goal and the 0.5 FTE of the Principal Transportation Planner. However, over that same time period there have been
substantial changes in the function and scale of the division. The most notable changes include:
1. Construction and operation of 341 new parking spaces in the Marsh Street Structure Expansion and Parking
Lot 4 beneath the expansion.
2. The development and oversight of 2,000 s.f. of office space and public restrooms constructed as part of the
Marsh Street expansion.
3. Construction and operation of 242 new parking spaces in the 919 Palm Street Structure.
4. Planning and design on the proposed parking structures at Nipomo and Palm.
5. The purchase and oversight of five dwelling units located within the Palm Nipomo parking structure project
area.
6. The management and oversight of 134 new parking spaces as part of the Railroad Transportation Center
development and 16 new parking spaces as part of Phase 1 of the Chinatown development. The addition of 5
new parking districts which added support for 400 additional households.
7. The development and implementation of the Access and Parking Management Plan.
8. Neighborhood parking enforcement expanded to seven days a week.
9. Downtown parking enforcement expanded to Sundays.
10. The installation and maintenance of 400 credit card accepting parking meters.
11. An increase of more than 100% in parking appeals since 2000 (918 parking appeals in 2000 to 2,200 in
2013).
12. An increase of more than 200% in citation hearings since 2000 (44 citation hearings in 2000 to 150 in 2013).
13. The Parking Services Manager being responsible for the Parking Enterprise Fund budget and analysis.
14. The Parking Services Manager assigned the “Downtown Champion” role adding public relations for all
things relating to the downtown.
Staff is proposing an organizational assessment of the Parking Division in 2013-14 to thoroughly evaluate staffing
levels and identify any opportunities for reorganization and efficiencies. In the interim, staff is recommending that a
temporary part-time position (City Worker 13) be funded for an 18-month period. This position will assist the Parking
Manager and assist with project management.
Parking Organization Assessment
Why recommend an organizational assessment of the Parking Division so soon after the 2011 Public Works
performance audit? Overall staff is recommending this assessment because the 2011 audit did not provide a
comprehensive organizational assessment specific to the Parking Division and there have been substantial changes
and expansion of the workload within the Parking Division since the audit was completed.
The 2011 audit was a management and performance study of the entire Public Works Department and due to that
extensive scope it was limited to only a cursory review of the Parking Services division within the context of the
whole Department. The performance audit did provide valuable procedural recommendations such as having finance
conduct a “spot audit” of cash handling, using high security locks for parking meters, and considering the use of pay
stations for the downtown. However, with the number of parking meters, structures, and citations as the only
measures used to evaluate the organizational structure a comprehensive organizational analysis specific to the Parking
Services division was not provided. Most importantly, since the audit was completed there have been substantial
changes in the fundamental duties and operations of the Parking Services Division. In 2011 after the Matrix study was
completed the Parking Services operating hours were expanded to evenings along with of the scope of duties being
expanded to neighborhoods. In addition in 2012 the operating hours were also expanded to Sundays. The combination
of these two changes has resulted in the Parking Services Division evolving into a 7 days a week operation absent an
evaluation of the cumulative effects on operations and organizational structure.
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SIGNIFICANT OPERATING PROGRAM CHANGE – TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
GOAL AND POLICY LINKS
1. 2013-15 Major City Goal for Neighborhood Wellness
2. Parking & Access Management Plan
3. Revenue Management Operating Program
4. Parking Management & Demand Reduction Operating Program
5. City of San Luis Obispo Municipal Code Titles 10 & 12
6. California Vehicle Code Sections 40200 - 40230
PROGRAM WORK COMPLETED
The Principal Transportation Planner position has already been partially functioning in the capacity recommended as part
of the 2011-13 Financial Plan.
ENVIRONMENTAL REVIEW
There are no constraints or environmental review requirements.
PROGRAM CONSTRAINTS AND LIMITATIONS
This SOPC request will require additional funding within the Parking Enterprise Fund and a temporary position will be
more difficult to retain than a permanent position. Additionally, hiring a part-time temporary City Worker position will
place additional oversight and supervision responsibilities on the Parking Manager. Finally, a part time position will be
more limited in the responsibilities the position can assume due to limited work hours.
STAKEHOLDERS
City residents, business owners, motorists, and the Downtown Association are stakeholders in this request. In addition an
organizational assessment will require assistance from the Human Resources Department.
IMPLEMENTATION
Task Date
1. Issue RFP for Parking Services division organizational assessment
2. Recruit for a part-time temporary City Worker 13 in the Parking Services division
3. Hire part-time temporary City Worker 13 in Parking Services division
4. Hire consultant for the Parking Services organizational assessment
5. Present recommendations
August 2013
July 2013
September 2013
October 2013
May 2014
KEY PROGRAM ASSUMPTIONS
1. Parking Fund financial support within the Parking Services division.
2. Qualified applicants for contract staff position and the Parking Services organizational assessment.
3. Re-defined Downtown Champion duties are reassigned to the Assistant City Manager in order for the Parking
Manager to assist with the organizational assessment and supervise the part-time temporary City Worker 13.
4. Hiring a temporary part time position will only be an interim solution to address current staffing shortages in the
division and therefore this request does not provide for the ability to take on duties beyond those outlined above.
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Line Item Description Account No. 2013-14 2014-15
Staffing 32,400 16,200
Temporary Salaries
Medicare
Unemployment Insurance
50600-7012
50600-7044
50600-7046
31,800
500
100
15,900
200
100
Contract Services 45,000 0
Contract Services (Org Assessment) 50600-7227 45,000 0
Total Operating Costs 77,400 16,200
SIGNIFICANT OPERATING PROGRAM CHANGE – TRANSPORTATION
PARKING DIVISION ORGANIZATIONAL ASSESSMENT AND STAFFING RETENTION
PROGRAM MANAGER AND TEAM SUPPORT
Program Manager:
Parking Services Manager
Project Team:
Public Works Administration, Parking Services, and Human Resources
ALTERNATIVES
1. Continue the Status Quo. No additional staffing could be hired until after the organizational assessment and/or no
organizational assessment undertaken. However this is not recommended because the existing situation is not
providing the resources needed for the division to be successful.
2. Defer or Re-Phase the Request. These changes could be deferred until a later date. This would prolong improving
the division’s organization and not prepare the division for upcoming retirements.
3. Implementation in a Different Way. Instead of hiring a temporary part time position, the position could be filled as a
full time contract benefited position. This alternative may result in a better pool of applicants, but would be at an
increased cost to the Parking Fund.
4. Existing Program Evaluation. An evaluation of the existing program is being recommended as part of this SOPC.
OPERATING PROGRAM
50600 - Parking Enterprise Fund
COST SUMMARY
The Parking Enterprise Fund organizational assessment will have a one-time cost of $45,000 in 2013-14. Staffing a part-
time temporary position for a period of 18 months will cost $32,400 in 2013-14 and $16,200 in 2014-15.
PARKING ENTERPRISE FUND (510)
C8 - 40
T:\Council Agenda Reports\2013\2013-12-10\Council Committee Appointments\CAR 2014 Council Subcommittee
Appointments.doc
FROM: Mayor Jan Marx and Vice Mayor Christianson
Prepared By: Anthony Mejia, City Clerk
SUBJECT: COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2014
RECOMMENDATION:
Approve Council Liaison Subcommittee assignments for calendar year 2014.
DISCUSSION
Council Policies and Procedures and the Advisory Body Handbook prescribe the method of
Council Liaison Subcommittee assignments:
6.1.1 The Mayor and Vice Mayor shall submit recommendations to the full
Council rotating nominations for Council Member Subcommittees, thereby
ensuring an opportunity for each member to serve as liaison at least once on
each advisory body, when possible. When terms of office do not allow each
member to serve once, members with greatest seniority shall have first right
of selection (CP&P 6.5.2, ABH III, C, 6).
A new City/University Planning Committee is proposed to be added to the subcommittee
assignment list. This committee would convene on a quarterly basis to discuss planning issues
between the City and University. The Committee would consist of the Mayor, rotating Council
Member, City Manager, Community Development Director, Community Development Deputy
Director, and representatives of Cal Poly.
The City Clerk made recommendations for appointments considering the preferences of
individual Council Members and the past several years’ appointments; Mayor Marx and Vice
Mayor-Elect Christianson have reviewed the City Clerk’s recommendations and recommend the
Council Liaison Subcommittee assignments as outlined in the attachment.
As in past years, automatic rotation for all technical and regional committees is not being
recommended. The recommended appointments allow for continuity where appropriate as well
as permitting Council Members to develop a higher level of expertise for some of the more
complex committees.
ATTACHMENT
2014 Subcommittee Assignment Recommendations
C9 - 1
COUNCIL SUBCOMMITTEE ASSIGNMENTS 2013-2014
CITY ADVISORY BODIES
• Interviews & makes recommendations
for appointments to the full Council.
• Facilitates communication between
Council and committees.
2013
CHAIR MEMBER
2014
CHAIR MEMBER
Architectural Review Commission Marx Ashbaugh Carpenter Ashbaugh
Bicycle Committee Ashbaugh Christianson Carpenter Smith
Board of Appeals Carpenter Smith Carpenter Smith
Cultural Heritage Committee Carpenter Smith Ashbaugh Carpenter
Housing Authority (Mayor by state
mandate) Marx N/A Marx N/A
Human Relations Commission Carpenter Ashbaugh Smith Ashbaugh
Investment Oversight Committee
(This is not an advisory committee) Marx N/A Marx N/A
Jack House Committee Smith Ashbaugh Carpenter Ashbaugh
Mass Transportation Committee Christianson Carpenter Smith Christianson
Parks & Recreation Commission Ashbaugh Christianson Ashbaugh Christianson
Personnel Board Carpenter Smith Carpenter Christianson
Planning Commission Smith Marx Smith Marx
Promotional Coordinating Committee Carpenter Christianson Christianson Carpenter
Tourism Business Improvement
District Board Smith Ashbaugh Smith Carpenter
Tree Committee Christianson Ashbaugh Ashbaugh Carpenter
SPECIAL PURPOSE
SUBCOMMITTEES
Serves as liaison representative.
2013
CHAIR MEMBER
2014
CHAIR MEMBER
Downtown Association Board
(Monthly) Smith Ashbaugh Christianson Smith
City/University (Mayor/Rotation)
(Quarterly) Marx Rotation Marx Rotation
City/University Planning Committee
(Quarterly) Marx Rotation Marx Rotation
Mayor’s Advisory Body Chair
Quarterly Meeting Marx Rotation Marx Rotation
Student Community Liaison
Committee (Mayor/Rotation) (Monthly) Marx Rotation Marx Rotation C9 - 2
T:\Council Agenda Reports\2013\2013-12-10\Council Committee Appointments\Council Subcommittee Assignments 2014.doc
COUNCIL SUBCOMMITTEE ASSIGNMENTS 2013-2014
COUNTY/REGIONAL
Serves as voting representative.
2013
CHAIR MEMBER
2014
CHAIR MEMBER
Air Pollution Control District (APCD)
(Quarterly) Marx Ashbaugh Marx Christianson
City Selection Committee (Mayor/
Vice Mayor Alternate) (1-2 times per yr) Marx Smith Marx Christianson
CMC Citizens Advisory Committee
(Monthly)
* 2 year term ends 12/06
Smith Smith N/A
Community Action Partnership
formerly Economic Opportunity
Commission (Monthly)
Ashbaugh Carpenter Christianson Ashbaugh
County Water Resources Adv.
Committee (Board of Supervisors)
(Monthly) Ashbaugh Christianson Ashbaugh Smith
Economic Vitality Corporation (EVC)
(Monthly) Christianson Ashbaugh Carpenter Ashbaugh
Homeless Services Oversight
Committee Ashbaugh Carpenter Ashbaugh Christianson
Integrated Waste Management
Authority (IWMA) (Monthly) Ashbaugh Smith Ashbaugh Smith
LAFCO (Liaison Only) (Monthly) Christianson Ashbaugh Christianson Ashbaugh
Nacimiento Water Project Smith Christianson Smith Christianson
PAC Facilities Standing Committee
(Quarterly) Carpenter Elke Carpenter Principal Analyst
Performing Arts Center Commission
(Mayor representative/Vice Mayor
as alternate) (Quarterly)
Marx
Codron
Smith
Codron
Marx
Codron
Christianson
Codron
San Luis Obispo Council of
Governments (SLOCOG) (Monthly) Marx Ashbaugh Marx Christianson
San Luis Obispo Regional Transit
Authority (SLORTA) (Monthly) Marx Ashbaugh Marx Christianson
Whale Rock Commission (Mayor,
Vice Mayor serves as alternate)
(June & as needed)
Marx Smith Marx Christianson
Zone 9 Advisory Committee (Monthly) Christianson Ashbaugh Ashbaugh Carpenter
AD HOC SUBCOMMITTEE
2013
CHAIR MEMBER
2014
CHAIR MEMBER
Airport Land Use Marx Christianson Marx Christianson
C9 - 3
T:\Council Agenda Reports\2013\2013-12-10\Council Committee Appointments\Council Subcommittee Assignments 2014.doc
Break down of appointments by Council Member
Counci Member Chair/Member Member/Alternate
John Ashbaugh
Cultural Heritage Committee
Parks and Recreation Commission
Tree Committee
County Water Resources Adv. Committee
Homeless Services Oversight Committee
Integrated Waste Management Authority
Zone 9 Advisory Committee
Architectural Review Commission
Human Relations Commission
Jack House Committee
Community Action Partnership
Economic Vitality Corporation
LAFCO
Dan Carpenter
Architectural Review Commission
Bicycle Committee
Board of Appeals
Jack House Committee
Personnel Board
Economic Vitality Corporation
PAC Facilities Standing Committee
Cultural Heritage Committee
Promotional Coordinating Committee
Tourism BID Board
Tree Committee
Zone 9 Advisory Committee
Carlyn Christianson
Promotional Coordinating Committee
Community Action Partnership
Downtown Association Board
LAFCO
Mass Transportation Committee
Parks and Recreation Commission
Personnel Board
Air Pollution Control District
Airport Land Use Ad Hoc Committee
City Selection Committee
Homeless Services Oversight Committee
Nacimiento Water Project
Performing Arts Center Commission
San Luis Obispo Council of Governments
San Luis Obispo Regional Transit Authority
Whale Rock Commission
Kathy Smith
Human Relations Commission
Mass Transportation Committee
Planning Commission
Tourism BID Board
CMC Citizens Advisory Committee
Nacimiento Water Project
Bicycle Committee
Board of Appeals
County Water Resources Advisory
Committee
Downtown Association Board
Integrated Waste Management Authority
Jan Marx
Housing Authority
Investment Oversight Committee
Air Pollution Control District
Airport Land Use Ad Hoc Committee
City Selection Committee
City/University Quarterly Meeting
City/University Planning Committee
Performing Arts Center Commission
Mayor’s Advisory Body Chair Quarterly Meeting
San Luis Obispo Council of Governments
San Luis Obispo Regional Transit Authority
Student Community Liaison Committee
Whale Rock Commission
Planning Commission
C9 - 4
FROM: Carrie Mattingly, Utilities Director
Prepared By: Jennifer Lawrence, Project Manager
SUBJECT: MONTEREY STREET WATERLINE REPLACEMENT
RECOMMENDATION
1. Authorize the City Manager to award a contract to Cannon in the amount of $59,840 for design
services for the “Monterey Street Waterline Replacement.”
2. Approve a Budget Amendment Request to transfer $59,840 from Water Completed Projects to
the design phase of the project.
3. Authorize staff to advertise for bids and authorize the City Manager to award the construction
contract if the lowest responsible bid is within the Engineer’s Estimate of $336,026.
DISCUSSION
In the past year the ten-inch waterline on Monterey Street between California and Pepper has
broken twice. Businesses in the area were without water and traffic was diverted around this section
of Monterey Street while crews spent several hours repairing the break.
An analysis of the risk and benefit of replacing the waterline was completed after the second break.
It is recommended, although the project is not currently on the list of scheduled waterline
replacements, that, due to age and condition of the existing pipeline, the entire section of pipe on
Monterey between California and Johnson be replaced as soon as possible.
There are two 16” water transmission line replacement projects (Phase I and Phase II) that will be
constructed in the area of this proposed project (see the 2013-15 Financial Plan, Capital
Improvement Plan, page 3-117). These projects are currently in the design stage with Phase I
scheduled for construction in April 2014. Phase II, which includes the intersection of California and
Monterey is scheduled for construction starting in July of 2014. Design and construction of this
proposed waterline replacement on Monterey would be scheduled concurrently with Phase II of the
16” water transmission line replacement to reduce costs and minimize traffic and service impacts.
CONCURRENCES
The Community Development Department has granted a Notice of Exemption for the proposed
project since minimal environmental impacts are anticipated.
FISCAL IMPACT
Staff has received a proposal for design from Cannon, one of the City’s on-call consultants
approved for engineering services (Attachment 1). Funding for the design and construction support
portion of the project is available in the Water Completed Projects Account which has a current
Meeting Date
Item Number Dec. 10, 2013
C10 - 1
Monterey Street Waterline Replacement Page 2
available balance of $130,553. The construction services portion of the project will begin in fiscal
year 2014-15. Funding will be provided during the 2014-15 budget supplement process from the
Water Fund’s working capital.
The project costs are estimated as shown below. A Budget Amendment Request will be processed
to transfer funding from the Completed Projects account to the project’s design.
Design Engineering and Construction Support
Design Services $34,540
Potholing$25,300
Total $59,840
Construction Services
Engineer's Estimate $336,026
Contingencies (15%)$50,404
Printing and Miscellaneous $5,000
Total $391,430
Total Project Cost$451,270
Monterey Street Waterline Replacement
ALTERNATIVE
Council could choose to deny funding for this project and pursue construction and design services at
a later date. This option is not recommended due to the two recent breaks in this pipe segment.
Without replacement, this section of pipeline is expected to fail and again cause traffic and water
service disruptions to the community.
ATTACHMENT
1. Engineer’s Design and Construction Budget Estimates
2. Budget Amendment Request
..\Monterey Street Waterline Replacement
C10 - 2
1050 Southwood Drive
San Luis Obispo, CA 93401
T 805.544.7407
F 805.544.3863
CannonCorp.us
November 12, 2013
Mr. Wade Horton, PE
Water Division Manager
City of San Luis Obispo
Utilities Administration and Engineering
879 Morro Street
San Luis Obispo, CA 93401
SUBJECT: PROPOSAL—MONTEREY STREET WATER MAIN REPLACEMENT
Dear Mr. Horton:
We understand the time-sensitive and critical nature of replacing an old water main in
Monterey Street between California Blvd and Johnson Ave. A recent waterline break along
this section of road resulted in significant road damage, disruption to businesses and
residences, and loss of potable water. Replacing this section of antiquated water main before
another break occurs will result in long-term savings to the City.
In preparing our proposal, we have visited the project site, discussed goals for the project with
City staff, developed a general understanding of the water service area of the water main, and
performed initial utility research along the street corridor. Based on this research we have
identified what we consider are the key elements for the success of this project.
•Water Main Alignment—it is critical to develop a realistic and constructible alignment
for the replacement main. This will require detailed utility research, field verification,
and base mapping in order to confidently choose the preferred location for the new
main.
•Constructible Design—thought needs to be devoted to developing construction and
connection details that can be easily installed in short timeframes. This will minimize
overall disruption to the community (i.e. traffic, businesses, residents and tourists.)
•Project Costs—alternative alignments and construction methods (i.e. trenchless
technology) need to be adequately evaluated in order to balance cost of construction
with community disruption.
Cannon has assembled a team of experienced design professionals with practical, local
knowledge in pipeline design, construction and detailed cost estimation. Our local staff
comes to this project with recent, relevant design experience including the City’s Johnson
Ave. water main replacement project completed in 2011.
The following proposal further identifies our understanding of the project and provides a
detailed scope of work. Considering the importance of sequencing for this project, we have
included a project schedule which shows the design phase of this work to be completed by
March 2014.
We stand ready to assist the City in replacing this critical component of infrastructure.
Attachment 1
C10 - 3
Proposal: Monterey Street Water Main Replacement
131033 2
Sincerely,
Larry P. Kraemer, PE
Director, Public Infrastructure Division
C 44813
C10 - 4
Proposal: Monterey Street Water Main Replacement
131033 1
PROJECT UNDERSTANDING
We understand the City intends to replace a critical segment of existing water main in
Monterey Street as a result of a recent break and the likelihood of another occurring in the
near future. Replacement of this aging infrastructure prior to another break will provide long-
term savings and reliability of service to the Community.
The design work necessary to replace the Monterey Street Water Main includes a topographic
survey, utility research and mapping, potholing, alignment alternatives analysis, plan and
profile layout, connection details, technical specifications, and cost estimates. Preliminary
design criteria are summarized below.
Project Criteria Notes
Diameter 10-inch
Material C900 PVC
Approximate Length 1,040 linear feet
Working Pressure To be determined during design
Surge Pressure To be determined during design
Hydrants Reconnect to existing (1-total). Evaluate additional
hydrants
Service Laterals Reconnect (preferred). Replace if polybutylene or
lead based.
In-line Valves Replace at same locations.
Installation Methods Open-cut and/or trenchless
Street Reconstruction considerations Old concrete roadway underneath. Dowel-in and
replace with concrete to minimize differential
settlement
Known Buried Obstructions Large, existing rectangular box culvert running
parallel to existing main along with City Comm.
(fiber optics)
Traffic Concerns Heavy but plenty of roadway width for one lane in
each direction
Connections Monterey/California, Monterey/Johnson,
hydrant(s), laterals
Other Ongoing Projects in the Vicinity Sewer line replacement at Monterey/California
(Filippin); water line replacement in California
(MNS); storm drain improvements at
California/Monterey (Penfield & Smith)
Budget Cost Estimate $415,000 (see attached preliminary cost estimate)
C10 - 5
Proposal: Monterey Street Water Main Replacement
131033 2
SCOPE OF WORK
Cannon’s approach to successful completion of this project consists of providing professional
services in three progressive phases: Preliminary Engineering, Construction Documents, and
Construction Engineering Support. Services will include a kickoff meeting, utility research and
mapping, potholing, design, cost estimates, construction documents, and responses to RFI’s.
Descriptions of our proposed involvement and proposed deliverables are summarized below
within each corresponding project task.
Phase 1. Preliminary Engineering
Task 1. Kick-Off Meeting
We will orchestrate and attend a Project Kick-Off Meeting with appropriate personnel from the
City. This meeting agenda will focus on project understanding, team involvement, project
constraints, and the anticipation of design development impediments. This meeting will also
include project introduction, review of background information and project scope, and an
overview of the project schedule. This meeting represents a key opportunity for
representatives from the City to steer the project and further clarify critical elements of the
scope. We anticipate that a field review meeting may also be of value and we have
incorporated a field walk with the City following the project kick-off meeting into our scope.
Task 1 Deliverables:
• Attend Project Kick-Off Meeting and Field Walk
• Prepare and distribute meeting minutes
Task 2. Utility Research & Base Mapping
We will coordinate with the utility companies and the City to obtain pertinent operations data
and record drawing information of utilities within the project areas. We will review applicable
utility documents, topographic survey, as-built drawings and other available materials provided
by the City to compile an electronic base map for use in the design plans. Potential utility
conflicts and/or relocation requirements will be identified and evaluated as needed to minimize
unexpected design modifications or construction delays.
We will initiate a USA Dig Alert Utility Search and will request that the utilities be marked in
order that the marking can be surveyed into the base drawing.
City Provided Items:
• Access to all available, pertinent record drawings in the City’s database
Task 2 Deliverables:
• Base Map in digital format
Task 3. Topographic Survey
We will prepare a topographic survey of the project corridor showing contours and spot
elevations, locations of existing structures, natural land features, roadways, paving, curb,
sidewalk, and existing utilities, drain inlets and catch basins, manholes and fire hydrants. If
required, we also provide locations of trees (greater than 4” in diameter).
An attempt will be made to correlate data that is collected in the field with the location and size
of all underground utilities gathered through our review of available record documentation.
C10 - 6
Proposal: Monterey Street Water Main Replacement
131033 3
We will utilize record data to show the record street right-of-way to identify the limits of public
property and to establish a boundary of the contractors work area.
Task 3 Deliverables:
• Topographic survey incorporated into the digital Base Map
Task 4. Potholing
Record data research of utility as-built information may fail to accurately identify both vertical
and horizontal locations of subsurface facilities. Where detailed information is required to
construct a tie-in connection or avoid crossing interferences and conflicts, potholing will be
used to verify horizontal and vertical depths. We assumed that 10 potholes will be required
for the project. The type of street pothole repair includes backfill with 2-sack slurry to below
AC grade and HMA patch at 6-inch thick. A no-fee encroachment will be issued by the City.
All traffic control will be in accordance with City requirements.
Task 4 Deliverables:
• Horizontal and vertical measurements using tape measure methods
Task 5. Preliminary Alignment
We will develop a preferred alignment alternative for the new 10-inch waterline within the
project corridor. We will prepare a preliminary plan and information that summarizes our
evaluation of the project’s constraints, which include the following:
• Proposed preliminary water main alignment via open-cut method
• Potential utility conflicts
• Utility location discrepancies
• Trenchless Alternative Evaluation (Swageline)
• Health department and other utility company horizontal and vertical clearance
requirements.
The preliminary plan and constraints information will also memorialize the design and test
pressures, as well as the specified materials for the project. A summary of the City-approved
variances and deviations from standard plans will be included in the analysis. We have
assumed the coordination and processing of Health Department approvals will be completed
by the City. One meeting with City staff is included with this task.
Task 5 Deliverables:
• Preliminary Alignment Information and Exhibit
Phase 2. Construction Documents
Task 6. 75% Construction Documents (Plans, Specifications, and Cost Estimate)
We will submit a “Review Submittal” Design Plans Package at a design and detail level
approximately equal to 75 percent of the anticipated final construction documents for your
review and comment. The Design Package will consist of five drawing sheets (24” x 36”) as
listed below, technical specifications, and a preliminary opinion of probable construction costs.
Anticipated Underground Improvement Plan Set:
• Title Sheet
• Two (2) Plan and Profile Sheets
• Two (2) Construction Details Sheets
C10 - 7
Proposal: Monterey Street Water Main Replacement
131033 4
This design package will contain the necessary plan, profile, and details to connect the new
water main with the existing mains in California and Johnson as well as service laterals and
hydrants.
Task 6 Deliverables:
• 75% Design Plans – Three (3) sets full size and One (1) PDF Format
• 75% Technical Specifications – PDF and Word Format
• 75% Cost Estimate – Excel and PDF Format
City Provided Items:
• City General Provisions – PDF and Word Format (Sample)
Task 7. 75% Design Review Meeting
We will attend one meeting with City staff to review and discuss the design submittal at the
75% completion stage.
Task 7 Deliverables:
• Attend meeting with City; provide meeting minutes
Task 8. 100% Construction Documents (Plans, Specifications, and Cost Estimate)
We will submit a “Review Submittal” Design Plans Package at a design and detail level
approximately equal to 100 percent of the anticipated final construction documents for your
review and comment. The Design Package will consist of three drawing sheets (24” x 36”) as
listed below, technical specifications, and a preliminary opinion of probable construction costs.
Anticipated Intersection Improvement Plan Set:
• Title Sheet
• Two (2) Plan and Profile Sheets
• Two (2) Construction Details Sheets
This design package will contain the necessary plan, profile, and details to connect the new
water main with the existing mains in California and Johnson as well as service laterals and
hydrants.
Task 8 Deliverables:
• 100% Design Plans – Three (3) sets full size and One (1) PDF Format
• 100% Technical Specifications – PDF and Word Format
• 100% Cost Estimate – Excel and PDF Format
City Provided Items:
• City General Provisions – PDF and Word Format (Sample)
Task 9. 100% Design Review Meeting
We will attend one meeting with City staff to review and discuss the design submittal at the
100% completion stage.
Task 9 Deliverables:
• Attend meeting with City; provide meeting minutes
C10 - 8
Proposal: Monterey Street Water Main Replacement
131033 5
Task 10. Final Construction Documents (Plans, Specifications, and Cost Estimate)
Based on City comments on the 100% submittal package, we will prepare and submit a Final
Construction Documents Bid package. This submittal package will contain complete
Construction Plans on permanent drawing medium (Mylar film) and an Opinion of Probable
Construction Costs. Bid documents will be prepared in the City’s standard format, including
contract documents and technical specifications. Electronic copies of all drawing files of the
Final Construction Documents will be submitted to the City.
Task 10 Deliverables:
• Final Design Plans – 3 sets full size (signed), 1 set Mylar, and PDF Format
• Final Technical Specifications – PDF and Word Format
• Final Cost Estimate – Excel and PDF Format
Phase 3. Construction
Task 11. Engineering Support
We will provide responses to requests for information (RFI) and requests for clarifications
during bidding and construction. We budgeted 16 hours for this effort.
ASSUMPTIONS AND EXCLUSIONS
The following assumptions and exclusions apply to this proposal:
• The City will provide record drawings and all documents relating to existing facilities at the
project site in PDF electronic and hard-copy format, including water service laterals and
sewer lateral locations derived from sewer video logs.
• All data prepared by others and provided to Cannon will be made available in a digital
format, compatible with our systems. It is also understood that the information and
technical data provided and prepared by others, on the Client’s behalf or Property
Owner’s behalf, may be used by Cannon in performing its services and is entitled to rely
upon the accuracy and completeness thereof.
• Permit Fees will be paid for by City.
• CEQA, Environmental Permitting, Archeological, botanical, and landscaping services will
be prepared by others.
• Preparation of Stormwater Pollution Prevention Plans, Erosion Control Plans, and
processing of NPDES Stormwater Permits will be prepared by others (if required).
• Right-of-Way mapping and/or determination is excluded from this scope of work.
• Traffic control plans will be prepared by others or will be the responsibility of the
construction contractor hired to perform the work.
• Typical services during construction are excluded from the scope at this time, including,
compaction testing, , construction management, and construction staking.
C10 - 9
Proposal: Monterey Street Water Main Replacement
131033 6
SCHEDULE
A preliminary Project Schedule detailing the Work Program is enclosed for your consideration.
We understand this schedule may be revised with input from the City regarding specific goals
and objectives for this project.
FEES
A detailed breakdown of our proposed fee estimate, including person-hours, rates, and costs, is
included for your review. Items not specifically identified in the Work Program are excluded
from our work and will be submitted to the City for review and approval.
C10 - 10
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No
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FebMarAprMayJunJulAugSepOct2014
PR
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Cannon 1050 Southwood Drive San Luis Obispo, CA 93401 805.544.7407
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Cannon 1050 Southwood Drive San Luis Obispo, CA 93401 805.544.7407
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Totals C10 - 12
City
Project:
No. :
Item
Number Item Est.
Quan.Unit Unit CostTotal Item Cost
1
Mobilization (not to exceed 5% of bid), complete and in place, in
accordance with the plans and specifications, for the unit price of…1LS$17,206.00 $17,206
2
Traffic Control, complete and in place, in accordance with the plans
and specifications, for the unit price of…1LS$25,000.00 $25,000
3
Potholing, complete and in place, in accordance with the plans and
specifications, for the unit price of…1LS$25,300.00 $25,300
4
10-inch Diameter PVC Water Main on Monterey Street between
Johnson Ave and California Blvd complete and in place, in
accordance with the plans and specifications, for the price of…1026LF$221.07 $226,820
4.01 10" PVC Water Main - Pressure Class 150 @ 4'-6' Depth 1,026LF$60.00 $61,560.00
4.02 Saw Cut Concrete 2,058LF $5.00 $10,290.00
4.03 Concrete Removal 3,078SF $5.00 $15,390.00
4.04 Excavation 684CY$15.00 $10,260.00
4.05 Shoring and Bracing 1,026LF$15.00 $15,390.00
4.06 Bedding 228CY$40.00 $9,120.00
4.07 Backfill and Compaction 352CY$10.00 $3,515.00
4.08 Plastic Wrap and Coating 1,026LF $2.50 $2,565.00
4.09 Connection to Existing Mains (special fittings, labor, etc.)2EA$2,500.00 $5,000.00
4.10 Concrete Road Section Restoration 76CY$750.00 $57,000.00
4.11 Pavement Restoration & Cleanup 342SY$65.00 $22,230.00
4.12 Roadway Striping Replacement 1LS$3,500.00 $3,500.00
4.12 Thrust Blocks 16EA$500.00 $8,000.00
4.13 Testing and Disinfection 1LS$3,000.00 $3,000.00
5
10-inch Tie-in Assembly, complete and in place, in accordance with
the plans and specifications, for the price of…2EA$8,000.00 $16,000
6
10-inch In-line Resilient Wedge Gate Valve Assembly, complete
and in place, in accordance with the plans and specifications, for the
price of…
2EA$3,000.00 $6,000
7
1-inch Water Service Tie-in complete and in place, in accordance
with the plans and specifications, for the price of…10EA$2,500.00 $25,000
8
Fire Hydrant Assembly, complete and in place, in accordance with
the plans and specifications, for the price of…2EA$5,000.00 $10,000
9
Abandon Existing 10-inch Water Line in place, in accordance with
the plans and specifications, for the price of…1LS$10,000.00 $10,000
Subtotal:$361,326
15% Contingency:$54,199
Design Engineering and Construction Support:$34,540
Grand Total:$450,065
EA = Each, LS = Lump Sum, LF = Lineal Feet, SF = Square Feet, CY = Cubic Yard, SY = Square Yard
Opinion of Probable Construction Cost
Monterey Street Waterline Replacement
In providing opinions of probable construction costs, the City must understand that Cannon has no control over the costs or the price of labor, equipment
or materials, or over the Contractor's method of pricing, and that the opinions of probable costs provided herein are made on the basis of Cannon's
qualifications and experience. Cannon makes no warranty, expressed or implied, as to the accuracy of such opinions as compared to bid or actual costs.
Rough Budget Estimate
Monterey Street Water Main Replacement Project1 of 1 November 2013
C10 - 13
Attachment 2
NUMBER
Fund No.
500
Amendment
Amount
TOTAL
Amendment
Project Phase Amount
Monterey Street Waterline Repl 91284500 91284952 59,840.00
Water Completed Projects 99899500 99899999 (59,840.00)
TOTAL -$
Date
Date
Director of Finance
Entered ByDate
Date
City of San Luis Obispo
BUDGET AMENDMENT REQUEST
Program
50055100
EXPENDITURES AND OTHER FINANCING USES
Account Description Revenue Account No.
Capital Project No.
50010100 99899999
Account Description
General Ledger No,
Account
91284952
Page_____of_____
Requesting Department Fund Name
Utilities Water
REVENUES AND OTHER FINANCING SOURCES
Per CAR dated12/10/13, transferring funding to design portion of project
City Administrative Officer
PURPOSE
Department Head
C10 - 14
FROM: Shelly Stanwyck, Parks and Recreation Director
Prepared By: Melissa C. Mudgett, Parks and Recreation Manager
SUBJECT: APPROVAL OF SLO SKATE PARK PUBLIC ART DESIGN
RECOMMENDATION
As recommended by the Parks and Recreation Commission, conceptually approve the public art
design, “Concrete Jungle”, for the City of San Luis Obispo (SLO) Skate Park located at Santa Rosa
Park.
DISCUSSION
Background
In January 2006, the skate community attended a Public Forum to express concerns about the
condition of the existing skate park (built in 1994). As a result, the City Council identified skate
park improvements as a Major City Goal and has since gone through the extensive design, planning
and approval processes. In the 2013-15 Financial Plan, Council approved an additional $1.2 million
in Measure Y revenues in support of final construction of the skate park. The final skate park
design develops and integrates four completely new outdoor recreational opportunities that will
draw multiple generations together in a revitalized common space serving the City’s most densely
populated neighborhood. A permanent in-ground skate park, an outdoor amphitheater, a low-impact
fitness path and a streetscape plaza for spectator seating, farmers markets, craft fairs and other
events have all been included in the design. These four elements facilitate shared multi-generational
use and connectivity with other existing park features – a playground, picnic areas, street hockey
court, horseshoe pit and ball fields.
Public Art
This project has differed from other public art projects in that the design for the artwork has been
integrated into the actual project itself. For the City, this will be the first time that project
construction and installation of public art components will occur simultaneously. The main
“entrance” to the new multi-use zone will feature the principal public art components (concrete and
metal shade trees) and landscaping. Public art has also been incorporated into the overall facility
design to showcase the cultural elements being introduced into the expansion design including
skateboarding, outdoor entertainment, walking fitness and community festivals.
On March 7, 2011, the Architectural Review Commission (ARC) reviewed and approved the
conceptual design of the SLO Skate Park located at Santa Rosa Park with conditions for additional
public art elements. In particular, the ARC discussed the need for the design of freestanding
sculptures, artistic shade structures, and art tiles to be used to accent the concrete skate surface.
After consulting with the RRM design team on how to satisfy the ARC’s condition, the use of an
artist as a public art design consultant surfaced as the best approach. On May 17, 2011, the City
Council authorized funding for a public art design consultant to design a variety of artistic elements
Meeting Date
Item Number 12/10 /2013
C11 - 1
SLO Skate Park Public Art Design Page 2
to be integrated into the construction documents for the SLO Skate Park project. The redesigned
artistic elements are now complete and with the funding approved for the construction of the SLO
Skatepark it is now timely for Council to review and conceptually approve the final public art
design.
Concrete Jungle
The SLO Skate Park public art project design, Concrete Jungle, includes four (4) concrete and steel
shade trees. Three “trees” are proposed to be at the skate park “entrance” and one across the park
on the north end. This fourth “tree” was recommended by the ARC in place of a living tree, thereby
eliminating concerns for tree maintenance and damage to the surrounding concrete caused by
uprooting. These 30-foot tall concrete and metal “trees” will serve a dual purpose, both as a skating
surface (concrete trunk) and as shade structures (metal tree canopy) for the surrounding park. The
project also includes the lighting of the four “trees”, artistic tiles on the edge of the bowl basin,
concrete art reliefs throughout the park, and landscaping in the park entrance planter boxes.
The artists have incorporated the ARC’s recommendations and provided the City with four funding
options based upon the desired scope of work and available public art funding.
Going Green
The artists and City staff have worked collaboratively to incorporate “green” aspects into the
facility and public art by use of recycled materials where possible. The public art media and
materials are appropriate for the City’s moderate climate, are low in maintenance needs, safe,
durable and fade resistant. Staff will continue to pursue solar lighting options for the project where
feasible.
CONCURRENCES
The Parks and Recreation Committee (PRC) has reviewed the SLO Skate Park public art design at
its November 6, 2013 meeting. The PRC approved the public art design with a phased-in
recommendation should the project be dependent upon available funding. The PRC recommended
several implementation options for the Council to consider at time of project award should funding
be limited.
The ARC will be meeting on December 2, 2013 to review and conceptually approve the redesigned
SLO Skate Park public art. Meeting minutes discussing the ARC’s recommendations for the public
art project will be included following this report and provided as a Council correspondence.
Public Works staff, Parks and Recreation staff, the artists and design consultant staff continue to
meet regularly to discuss the project and to coordinate project construction schedules, funding and
public art implementation.
FISCAL IMPACT
Funding for the SLO Skate Park construction has been identified as part of the 2013-15 Financial
Plan, pages 3-358 through 3-369. City Council approved an additional $1.2 million in Measure Y
revenues, to augment the $973,700 available funding, in support of final construction of the skate
park. The total project budget of $2,200,000 does not included public art funding. The approval of
C11 - 2
SLO Skate Park Public Art Design Page 3
the Skate Park Public Art design does not have an immediate fiscal impact. Council will determine
the levels of public art implementation and funding at the time of construction award in Spring
2014. At that time funding available for the construction of the Public Art will be specifically
identified and will include the existing balance in the Public Art fund which continues to receive
funds from developer in-lieu fees and occasional private donations.
The artists have incorporated the ARC’s recommendations and provided with the City with level of
implementation to be determined based upon the available public art funding. All design,
permitting, inspection and lighting costs compose the “base price” of $71,100 regardless of the total
numbers of “trees” installed. Fabrication and installation has been estimated at an additional
$67,000 per “tree.” The project scope and estimated public art costs range from 6% to 15% of the
overall construction project costs of $2.2 million. This level of proposed public art funding is
consistent with the City’s public art policy and guidelines.
Project Scope Estimated Cost Public Art %
1 tree $ 138,100 6%
2 trees $ 205,100 9%
3 trees $ 272,100 12%
4 trees* $ 339,100 15%
Estimated Public Art Costs "Concrete Jungle"
*Project scope as recommended by PRC and ARC
ALTERNATIVE
Deny Public Art Design. The City Council could choose not to approve the SLO Skate Park public
art design, “Concrete Jungle”, as presented and direct staff to return to Council with alternatives for
a redesigned the public art project. Staff does not recommend this option as the public art project is
consistent with the City’s public art program and satisfies the ARC’s conditions for additional
artistic elements. Additionally, the public art project is consistent with the procedural criteria for
the selection and placement of public art as set forth in the City’s Community Design Guidelines.
The proposed “Concrete Jungle” tree design has received concurrence from the design consultant
providing the structural analysis, and from both the PRC and ARC. Delays in the approval of the
public art design may have an impact on project construction as bid specifications currently
incorporate the construction of the concrete tree trunk bases of the Public Art, as part of the Skate
Park construction.
ATTACHMENTS
1. 2013-15 Financial Plan
2. Major City Goal
3. Skate Park Public Art Schematic and Maquette
4. Skate Park Vicinity Map
5. Skate Park Public Art Renderings
6. Meeting Minutes, PRC 11/6/13 and ARC 12/2/13
t:\council agenda reports\2013\2013-12-10\slo skate park public art design (stanwyck-mudgett)\ecar slo skate park public art design.docx
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Project Description
Constructing a new in-ground concrete skate park facility in Santa Rosa Park will cost $1,226,300 for construction and construction management in 2013-14.
The complete Master Plan project will cost $2,200,000, however project funding to date totals $973,700.
Maintenance/Replacement New project Fleet Replacement New Fleet Request
Council Goal / Measure Y Priority - List: Complete Construction of a Skate Park; Measure Y Priority
Need and Urgency
In 1994, community volunteers came together to construct San Luis Obispo’s first and only skate park at Santa Rosa Park. A small concrete pad was poured and
temporary wooden ramps were erected, with the hope that eventually funds would become available to construct a permanent skate park. Over the years, the
skateboarding area was furnished with ramps and obstacles built by City staff, the users and volunteers. The components were constructed of wood and
deteriorated quickly as a result of exposure to the outdoor elements and overuse by skate enthusiasts. The skate community attended the Public Forum in January
2006 to express concerns about the condition of the existing skate park. As a result, the City Council identified skate park improvements as a Major City Goal in
the 2007-09 Financial Plan and has since gone through the extensive design, planning and approval processes.
During 2007-08, staff conducted a needs assessment on the skate park facility. Through a series of community meetings, input was gathered on whether the City
should pursue replacing the existing equipment with modular steel skate ramps and obstacles or consider construction of a new permanent skate park facility.
Consensus was overwhelming for a permanent facility, which would have additional amenities to enhance expanded programs and entice special events and
competitions.
The City Council received the results of the Santa Rosa Skate Park Needs Assessment at its May 20, 2008 meeting and unanimously supported the idea of having a
“premier” skate park located in San Luis Obispo. Council provided direction to staff to move forward with a Master Plan for an in-ground concrete skate park,
work with the community on fundraising efforts, and encouraged staff to move forward with the project as quickly as possible. In addition, Council authorized the
purchase of modular steel equipment with a limited life span to replace the current wood structures to address existing safety concerns and serve as a stop-gap
measure until a permanent park could be constructed. Today, this remains a temporary fix on the road to the community’s longstanding dream to build a permanent
skate park.
Using the needs assessment as a guide, during 2008-09, a Master Plan was developed for the new skate park and presented to City Council in January 2009. The
Master Planned skate park is designed to be approximately 15,000 square feet and located in the area of the current skate park and adjacent grass area. An
entry/stage area was included in the skate park design to allow for passage to the facility and provide an entertainment and seating area for events. A planned plaza
between the skate park and roller hockey rink provides an area where vendors and groups could gather during large events. In all, approximately 30,000 square feet
was included in the Master Plan for the Skate Park and related amenities.
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Santa Rosa Skate Park Project Review
Phase/Cost Review Date Approved
Study/$52,000
Community Forum January 10, 2007
Needs Assessment Workshop January 26, 2008
Needs Assessment Workshop March 1, 2008
Parks & Recreation Commission May 7, 2008
City Council Meeting May 20, 2008
Master Plan Workshop October 4, 2008
Master Plan Workshop November 8, 2008
Stakeholder Task Force November 17, 2008
Design/$178,600
Parks & Recreation Commission January 7, 2009
City Council Meeting January 20, 2009
Stakeholder Task Force February 23, 2009
Stakeholder Task Force June 23, 2009
Stakeholder Task Force March 20, 2010
Stakeholder Task Force June 21, 2010
Stakeholder Task Force January 24, 2011
Planning Commission Meeting January 26, 2011
Architectural Review Committee March 21, 2011
Total 230,600
The Master Planned skate park develops and integrates four completely new outdoor recreational opportunities that will draw multiple generations together in a
revitalized common space serving the City’s most densely-populated neighborhood. A permanent in-ground skate park, an outdoor amphitheater, a low-impact
fitness path and a streetscape plaza for spectator seating, farmers markets, craft fairs and other events have all been included in the design. These four elements
facilitate shared multi-generational use and connectivity with other existing park features – a playground, picnic areas, street hockey court, horseshoe pit and ball
fields. The main entrance to the new multi-use zone will feature a public art component and native landscaping. Public art will also be incorporated into the overall
facility design and showcase the cultural elements being introduced into the expansion design including skateboarding, outdoor entertainment, walking fitness and
community festivals.
After City Council approved the Santa Rosa Skate Park CIP for the 2009-11 budget cycle (Appendix B, Pages 3-290 through 3-293), it was expected that an
additional $791,700 would be acquired through fundraising and grants to complete the skate park project. Staff has worked tirelessly over the past three years, with
the support of stakeholders, to raise funds of over $54,000 (including the Tony Hawk Foundation Grant for $25,000) and still the project is short by $737,600.
Santa Rosa Skate Park Approved Design
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Hundreds of hours have been spent on grant applications (and accompanying site visits and presentations) as well as numerous community fundraising events and
outreach efforts. Although numerous grant applications have been submitted, including California’s Prop 84 grant, these efforts have not been fruitful. The project
cannot proceed to construction without additional funding allocations from the General Fund. The City demographically is not “underprivileged” or “urban”
enough to receive formerly existing state grant funds, as well as it does not meet most grant criteria for adding new park space/acreage. The project itself has not
appealed to potential donors (ranging from foundations to companies to community members). With each passing year, stakeholders and supporters are frustrated
and seeking clarity in the direction the City is headed with this project. If the direction continues that staff and/or community stakeholders must raise all remaining
funds, the estimated build date would be indiscernible.
Current state of the Santa Rosa Skate Park Project
This CIP is the continuation of a previously adopted, but not completed Major City Goal. Because of the financing strategy established with the 2009-11 CIP, the
design of Santa Rosa Skate Park Project as envisioned by the adopted Master Plan has progressed to 95% completion. A Use Permit was approved by the Planning
Commission in January of 2011. The project design was approved by the Architectural Review Committee in March 2011. The construction documents (plans and
specifications) were prepared and have been submitted to the Building Department for a building permit and are essentially complete pending one round of staff
review before being considered bid ready. A Storm Water Pollution Prevention Plan and permit will also need to be obtained prior to starting any grading
operations. From the needs assessment and Master Planning phase which began in 2008 through the current design and construction document phase, City Staff
and consultants have been working on this project for nearly five years at a cost of $230,000 for these phases ($52,000 for the needs assessment/Master Planning
efforts and $178,000 for design and bid document preparation). In addition to these expenditures, significant staff time has been given to seeing the project
through. Needless to say, considerable time and resources have been invested in this project to date.
Why is this project important to our community?
The need for a permanent skate park in the City of San Luis Obispo has been a dream for over half a decade. The planning process for the Santa Rosa Park has
already built significant social capital among community residents. The groundswell of support for the project spans generation, socioeconomic class, and ethnicity
to pursue a common goal of opening a new recreational hub in our city.
The Santa Rosa Skate Park is important to the community for several reasons. Most specifically, the park provides community value in five significant ways:
1. Social Benefits. The neighborhoods directly adjacent to Santa Rosa Park have the highest number of youth living in poverty in San Luis Obispo. These
and other low-income teens have severely limited opportunities to access free City-based outdoor recreation. After-school and summer programs offered
to youth do not extend past the age of 12, leaving kids aged 13 to 18 without designated places for recreation. Parks and Recreation and other local
organizations do offer athletic recreation programs for youth; all require fees to be paid for participation. Costs range between $20 and $500 per person
depending on the sport. This often leaves low-income youth without an opportunity to participate. Juvenile crime is a national crisis that is alive in San
Luis Obispo and is frequently attributed to disconnect from viable afterschool physical activities and recreation.
Additionally, the Santa Rosa Skate Park will provide a place for youth who aren’t attracted to traditional team sports a place to go and express themselves
in an individual and athletic manner. Getting youth, particularly at-risk youth, involved in a personal and esteem-building activity like skateboarding helps
build the confidence to do well in other aspects of their lives. At San Luis Obispo High School, less than a mile from the proposed project site, fewer than
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half of the 1500 enrolled students are involved in traditional athletics (e.g. football, baseball, soccer, basketball, track, volleyball, and cross country). This
leaves approximately 900 students not involved in traditional sports and without many options for afterschool physical activity and recreation.
2. Health and Developmental Benefits. Skateboarding has been shown to be an excellent means for youth to stay physically active. Skateboarding is
physically active and requires, at times, great concentration. It encourages youth to spend time outdoors, test their endurance, sharpen their senses, and
develop their creativity. Skateboarding requires no coaches and suggests no standardized approach to riding a skate park. Skaters are free to ride in their
own way, to their own abilities, and encouraged to pursue their own style of skating. It is currently the third most popular recreational activity among
youth ages 6-18 years old. These are formative years in a youth’s life and developing a habitual desire for physical recreation is essential to a healthy
future. Many people who started in their teens still enjoy skateboarding well into their 50s. Furthermore, youth in low-income areas (like those
surrounding Santa Rosa Park) are particularly prone to health issues related to lack of exercise due to the expense of equipment and travel, or lack of
leisure time. For this area, the skate park will become an effective tool that teaches healthy, athletic living at an impressionable age.
3. Public Comfort and Safety Benefits. The 9.3-million skateboarders in America only have about 3,000 skate parks nationwide. That means the vast
majority of them are skating in the streets. The downtown core of San Luis Obispo has an ordinance that prohibits skateboarding. The building of a new
skate park facility will attract and retain the skateboarders, greatly reducing negative contact with law enforcement. Santa Rosa Skate Park will provide a
place for local youth to practice their tricks. This means that they’re not skating downtown or in areas where they are seen as a nuisance, a menace, or
causing damage. Over 75% of communities that have built skate parks in the last 10 years have confirmed a significant reduction in street skating
problems, such as damage to public and private property. A permanent in-ground skate park will reduce the amount of damage seen throughout the
community and limit the number of citations issued for illegal skateboarding. In addition to the direct health benefits, research even suggests that
skateboarding can help keep teens out of trouble. A 2006 study found that skateboarders are less likely to smoke cigarettes, engage in sexual intercourse,
and skip school. (“Physical Activity and Sedentary Behavior Patterns are Associated with Selected Adolescent Health Risk Behaviors,” PEDIATRICS,
Vol. 117 No. 4, April 2006)
4. Economic Benefits. Feedback from other municipalities with a skate park suggests a positive effect on businesses in the surrounding areas. The Santa
Rosa Skate Park is designed to draw people from near and far. Out of town visitors will likely stay in hotels, shop in local stores, eat in restaurants and
buy gas.
5. Community Development Benefits. The Santa Rosa Skate Park was designed with local skater input and involvement throughout the process--these
youth have developed a sense of ownership, pride, and community engagement. The very existence of the park is the result of their hard work and
interaction with the broader community. These previously disenfranchised skaters, who once ran from the police, have found themselves working side-by-
side with the city, and the community as a whole. It has been a transformational process for these youth. The Santa Rosa Skate Park project has allowed
the community to see the skate community for what they truly are: passionate, dedicated athletes that voluntarily seek out physical recreation. Without a
skate park, the skateboarders will continue to feel like pariahs who are repeatedly told to leave the area. The cumulative effects of this will instill a sense
of disconnection to their community.
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Readiness to Build
Study complete or n/a
Equipment purchased or n/a
Property owned or property agreement in place n/a
Environmental approval and permits complete or n/a Environmental Approval is complete. Building Permit is pending. Water Quality/Storm Water
Permit still needs to be obtained prior to construction.
Specifications or construction documents complete n/a Construction Documents are 95% complete.
IT Steering Committee review n/a
Environmental Review and Permits Required
Environmental Review n/a
Building Permit n/a
Waterway Permits (Fish & Wildlife, Water Quality, Army Corps) n/a Water Quality (SWPP)
Railroad n/a
Operating Program Number and Title:
60100 Recreation Administration
Project Phasing and Funding Sources
Continuing, ongoing or master account project - Specification No. 90752
Thus far, project expenditures include Needs, Assessment, Master Planning, Design and Construction Documents)
Budget to Date 2013-142014-152015-162016-172017-18 Total
Utilities $780 $800 $900$1,000$3,480
Maintenance materials $2,000$2,000$2,000$5,000$11,000
Contract Services $35,600$35,600$36,000$36,000$143,200
Total $0 $0$38,380$38,400$38,900$42,000$157,680
Ongoing Costs by Type
Detail of ongoing costs and alternatives to ongoing costs including return on investment information:
Based on published maintenance management standards/guidelines (Operational Guidelines for Grounds Management and Park Maintenance Standards.) It is
anticipated that this new facility will require an additional half-time maintenance worker to provide ongoing repairs and daily routine maintenance of the skate
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park, plaza, amphitheater and landscaping. It is anticipated that approximately $2,000/year will be needed for materials and approximately $3,000 every 5 years for
repairs or replacement of sump pumps/controls.
Anticipated Facility Life Span: 50 years
Budget to Date 2013-142014-152015-162016-172017-18 Total
General Fund $1,226,300 $1,226,300
Parkland Development Fund $919,700 $919,700
Grant $25,000 $25,000
Fund Raising $29,000 $29,000
Total$973,700$1,226,300 $0 $0 $0 $0$2,200,000
Project Funding by Source
Reduced / Enhanced Project Alternatives
Alternate project is feasible or advantageous – Cost of alternative project:
It is at this critical 2013-15 Financial Plan venture, that the Parks and Recreation Department receive a firm direction on the future of the Santa Rosa Skate Park
project. With the assistance of Public Works and RRM Design four alternatives for the SLO Skate Park at Santa Rosa Park are listed and compared below. The
options are presented, in recommended alternative priority, based on feedback from the stakeholders, staff and design consultants. However, none of the presented
options are recommended as they do not reflect the features identified in the Needs Assessment. The Master Plan skate park reflects those desires, which include
features for the novice through the expert skateboarder. In selecting alternatives, the project will meet fewer needs of the users and be less appealing to the
community at large.
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Value Engineering Options
Summary
CIP Proposed Budget
Full Project
Option A
Full Project, Less Site
Amenities
Option B
Street Course
Option C
Modular Equipment
INCLUDES • Entire Skate Park Area
(15,500 sf)
• Sports-Lighting
• Drainage Improvements
and Drainage Basin
• Minimal Site
Improvements
• At-Grade ”Street Course”
Skate Park Area Only
(7,200 sf)
• Reduced Sports-Lighting
• Drainage Improvements
and Drainage Basin
• Minimal
Site Improvements for
ADA Accessibility
• Additional
Square Footage to the
Current Concrete Slab
• Improved
Modular Equipment
ELIMINATES • Amphitheater
• Entry Feature
• Multi-Use Plaza/
Maintenance Vehicle
Access Paving
• Site Lighting
• Public Art features
• Below-Grade
Skate Features (Pools and
Snake Run)
• Amphitheater
• Entry Feature
• Multi-Use
Plaza/Maintenance Vehicle
Access Paving
• Sports Lighting Poles
• Site Lighting
• Public Art features
• Below-Grade
• Skate Features (Pools and
Snake Run)
• Amphitheater
• Entry Feature
• Multiuse
Plaza/Maintenance Vehicle
Access Paving
• Sports Lighting
• Site Lighting
• Drainage Improvements
and Drainage basin
• Public Art features
Construction 1 $1,739,000 $1,381,000 $745,000 $262,000
SW Plan/Permit $20,000 $20,000 20,000 0
Materials Testing $20,000 $15,000 10,000 $2,500
Misc., printing, etc. $3,000 $2,000 2,000 $500
Contingency (10% ±) $168,000 $132,000 $73,000 $25,000
Construction Costs $1,950,000 $1,550,000 $850,000 $290,000
Const. Management $200,000 $175,000 $150,000 $45,000
Const. Admin/Architect $50,000 $35,000 25,000 0
Const. Mgmt. Costs $250,000 $210,000 $175,000 $45,000
Redesign Fees 0 $50,000 $50,000 $15,000
Total $2,200,000 $1,810,000 $1,075,000 $350,000
Available Budget $973,700 $948,700 $948,700 $948,700
Budget Shortfall (or Balance
Remaining)
$1,226,300 $861,300 $126,300 ($-598,700)
1. Includes 4% escalation for 1 yr.
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Staff recognizes four (4) levels of alternative options for the build:
1. Option A – Full Skate Park, Less Site Amenities: This option eliminates almost all site amenities designed in the approved Master Plan project.
o Lost Costs: $50,000 (Redesign), $25,000 (Tony Hawk Grant)
2. Option B – Street Course: The street course eliminates in-ground features and eliminates almost all site amenities in the approved Master Plan project.
o Lost Costs: $230,000 (Needs, Assessment, Master Planning, Design, Construction Documents), $25,000 (Tony Hawk Grant), $50,000 (Redesign)
3. Option C – Modular Equipment: A concrete slab skate area with modular equipment (steel/wood or concrete) eliminates all site amenities and skate
park features as designed in the approved Master Plan project, thus reducing opportunities for program expansion and community services.
o Lost Costs: $230,000 (Needs, Assessment, Master Planning, Design, Construction Documents), $25,000 (Tony Hawk Grant), $8,000 (Redesign)
4. Option D – No Improvements: Deny the Project and close down the current skate park. Denying the project is not recommended by staff. City Council
indicated strong support for a premier in-ground concrete skate park. Denying the project would disappoint a large and active skate community (children,
teens and adults) who would like to see a permanent facility constructed. Additionally, all City funds expended to date for this project ($230,000) would be
lost. If Council decides to deny the project, staff recommends that the current, temporary park be closed immediately. Staff believes strongly that the
temporary skate park does not support the Department’s mission to provide quality parks, open space, recreation, cultural and educational services,
essential to the enhancement and promotion of personal well-being and a sense of community. Without staff supervision and care for equipment, Parks,
Police and Parks and Recreation staff are constantly “putting out fires”. This has created an unsafe meeting place that is not in accordance with other Parks
and Parks and Recreation facilities.
Further Implications
Tony Hawk Grant: It also important to note, the $25,000 Tony Hawk Grant awarded to the skate park project (in which the City has been
granted an extension); will be retracted if the Council wishes to pursue Options A, B, C or D or set an indefinite date of construction.
Parkland Development Fees: Terminating construction of the skate park results in a return of $919,700 park in lieu funds to the Parkland
Development Fund.
Public Art: In 2009-11, City Council approved $30,000 in Public Art funds to be spent on the design and engineering of public art
elements for the Master Planned skate park. A contracted art consultant worked with City staff, the City’s Architectural Review
Committee, community stakeholders and the design consultants to design and create outdoor public art that marks the uniqueness of the
space. To date four concepts have completed the design and engineering phases: 1) Four customized shade-structures over the
amphitheater and park entrances 2) Glass tile enhancements (inside the skate zone) 3) Etching work inside the skate zone, and 4) A
customized drinking fountain/water feature at the park’s main entrance. If the Council chooses Options A or B, some of the public art
funds will be lost, if C or D is chosen all the public art funds will be lost as a result of the re-design.
Santa Rosa Park Drainage Issue: The proposed CIP as well as Option A and Option B include approximately $90,000 of construction
costs to provide drainage of the below grade pools and to remedy on-going drainage issue that has existed at the park since the year the
ball fields were constructed. The drainage of the below grade pools requires the water to be pumped to the surface and conveyed to a
drainage basin for percolation into the ground. Using the existing lawn area to the west of the skate park to percolate the skate park
drainage was not advisable as it is already saturated from the ball field drainage. Adding more drainage to the area would only exacerbate
the muddy conditions making it unusable for activities and/or destroying the lawn. The proposed solution to the drainage for the ball field
and skate park bowls includes re-grading of the parking lot to lower the westerly boundary and construction of curb and gutter along the
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length of the lot to allow surface flows from the ball field and from the pumped basins to flow southerly to a new drain basin in a lawn
area south of the hockey court. This area is not used for activities and allowed for any overflow of the basin to reach an existing catch
basin at the corner of the park. The cost of resolving the drainage for the ball field and below ground bowls is approximately $90,000. This
drainage issue did not surface during the Master Planning phases and was not accounted for in the preliminary estimates. Although the
drainage would need to be addressed in the current CIP as well as option A, the drainage due to the ball field is still an ongoing issue and
should be addressed regardless of the construction of a skate facility. It is presumed a separate CIP will be submitted in the next Financial
Plan for this issue if the current CIP or Option A do not move forward. Looking at the projects as separate CIPs would reflect the
following reduction in overall costs:
o Skate Park CIP Carry Forward: $1,136,300
o Skate Park Option A: $746,300
o Skate Park Option B: $11,300
o Santa Rosa Park Drainage: $90,000
Project can be phased – Number of years for phasing:
Project Team
Assignment Program Estimated Hours
Project Management CIP Engineering 120
Administration CIP Engineering 100
Inspection CIP Engineering 240 (assuming outside inspection)
Project Team Parks and Recreation, Public
Works – Parks Maintenance Staff
80
Location Map
Location maps, site plans or schematic designs should accompany the CIP request whenever this will improve overall understanding of the project. These should
be electronically integrated into the request.
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Complete Master Plan Designed Project
Master Planned skate park facility in Santa Rosa Park will
cost $1,226,300 in 2013-14.
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Reduced / Enhanced Project Alternatives (Images)
Option A: Skate Park less Site Amenities
New in-ground concrete skate park area, eliminating
designed amphitheater, entry feature, multi-up
plaza/maintenance vehicle access paving, some public art
features and site lighting, will cost $836,300 in 2013-14.
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Option B: Street Course
A new “street course” skate park area (eliminating
below-grade skate features: pools and snake run,
amphitheater, entry feature, multi-use plaza/maintenance
vehicle access paving, sports lighting poles, most public
art features and site lighting) will cost $101,300 in 2013-
14.
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MAJOR CITY GOALS
SKATE PARK
GOAL STATEMENT
Complete construction of the skate park, utilizing a combination of public funds, donations, and grant funding
where possible.
OBJECTIVE
Construct the master planned and designed Santa Rosa Skate Park.
DISCUSSION
Why is this project important to our community?
A permanent skate park in the City of San Luis Obispo has been a dream for over half a decade and the resulting
planning process for the Santa Rosa Park has built significant social capital among community residents. The
groundswell of support for the project span generation, socioeconomic class, and ethnicity in pursuit of a common
goal of opening a new recreational hub in the City of San Luis Obispo.
The Santa Rosa Skate Park is important to the community for several reasons. Most specifically, the park provides
community value in five significant ways:
1. Social Benefits. The neighborhoods directly adjacent to Santa Rosa Park have the highest number of
youth living in poverty in San Luis Obispo. These and other low-income teens have severely limited
opportunities to access free City-based outdoor recreation. After-school and summer programs offered to
youth do not extend past the age of 12, leaving kids aged 13 to 18 without designated places for
recreation.
2. Health and Developmental Benefits.Skateboarding has been shown to be an excellent means for youth
to stay physically active as it provides physical activity and requires, at times, great concentration. It
encourages youth to spend time outdoors, test their endurance, sharpen their senses, and develop their
creativity. Skateboarding requires no coaches and suggests no standardized approach to riding a skate
park. It is currently the third most popular recreational activity among youth ages 6-18 years old.
3. Public Comfort and Safety Benefits. The 9.3million skateboarders in America only have about 3,000
skate parks nationwide. That means the vast majority of them are skating in the streets. The downtown
core of San Luis Obispo has an ordinance that prohibits skateboarding. The new skate park facility will
attract and retain the skateboarders, thus greatly reducing negative contact with law enforcement.
4. Economic Benefits. Feedback from other municipalities with a skate park suggests a positive effect on
businesses in the surrounding areas. The Santa Rosa Skate Park is designed to draw people from near and
far with out of town visitors likely staying in hotels, enjoying local dining and shopping.
5. Community Development Benefits. The Santa Rosa Skate Park was designed with local skater input
and involvement throughout the process--these youth have developed a sense of ownership, pride, and
community engagement. The very existence of the park is the result of their hard work and interaction
with the broader community.
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MAJOR CITY GOALS
SKATE PARK
History of the Santa Rosa Skate Park
In 1994, community volunteers came together to construct San Luis Obispo’s first and only skate park at Santa
Rosa Park. A small concrete pad was poured and temporary wooden ramps were erected, with the hope that in the
future sufficient funds would become available to construct a permanent skate park. Over the years, the
skateboarding area was furnished with ramps and obstacles built by City staff, the users, and volunteers. The
components were constructed of wood and deteriorated quickly as a result of exposure to the elements and
overuse by skate enthusiasts.
2007-09 Major City Goal and Development of a Master Plan for a Skate Park
The skate community attended the Council’s Goal Setting Public Forum in January 2006 to express concerns
about the condition of the existing skate park. As a result, the City Council identified skate park improvements as
a 2007-09 Major City Goal and has undertaken an extensive design, planning and project approval process.
During 2007-08, staff conducted a needs assessment on the skate park facility. Consensus was overwhelming for
a permanent facility with additional amenities to enhance expanded programs and encourage special events and
competitions.
The City Council received the results of the Santa Rosa Skate Park Needs Assessment at its May 20, 2008
meeting and unanimously supported the idea of having a “premier” skate park located in San Luis Obispo.
Council directed staff to move forward with a Master Plan for an in-ground concrete skate park, work on
fundraising efforts, and encouraged staff to move forward with the project as quickly as possible. In addition,
Council authorized the purchase of modular steel equipment with a limited life span to replace the deteriorating
wood structures, addressing safety concerns and serving as a stop-gap measure until a permanent park could be
constructed.
Using the needs assessment as a guide, a Master Plan was developed for the new skate park and presented to City
Council in January 2009. The Master Planned skate park is designed to be approximately 15,000 square feet and
includes the current skate park and adjacent grass area. An entry/stage area was incorporated into design to allow
for passage to the facility and provide an entertainment and seating area for events. A planned plaza between the
Skate Park and roller hockey rink provides an area for vendors and groups to gather during large events. In all, the
Master Plan for the Skate Park and related amenities encompasses approximately 30,000 square feet.
Development of the Santa Rosa Skate Park Plans and Summary of Public Involvement
Summary of Santa Rosa Skate Park Meeting (Study and Design Phases
Study
Community Forum January 10, 2007
Needs Assessment Workshop January 26, 2008
Needs Assessment Workshop March 1, 2008
Parks & Recreation Commission May 7, 2008
City Council Meeting May 20, 2008
Master Plan Workshop October 4, 2008
Master Plan Workshop November 8, 2008
Stakeholder Task Force November 17, 2008
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Design
Parks & Recreation Commission January 7, 2009
City Council Meeting January 20, 2009
Stakeholder Task Force February 23, 2009
Stakeholder Task Force June 23, 2009
Stakeholder Task Force March 20, 2010
Stakeholder Task Force June 21, 2010
Stakeholder Task Force January 24, 2011
Planning Commission Meeting January 26, 2011
Architectural Review Committee March 21, 2011
The Approved Design for the Santa Rosa Master Planned Skate Park
The approved Santa Rosa Skate Park design integrates four completely new outdoor recreational opportunities
that will draw multiple generations together in a revitalized common space serving the City’s most densely-
populated neighborhood. A permanent in-ground skate park, an outdoor amphitheater, a low-impact fitness path
and a streetscape plaza for spectator seating, farmers markets, craft fairs and other events have all been included
in the design. These four elements facilitate shared multi-generational use and connectivity with other existing
park features such as the playground, picnic areas, street hockey court, and horseshoe pit and ball fields. The main
entrance to the new multi-use zone will feature a Public Art component and native landscaping. Public Art has
also been incorporated into the overall facility design and showcases the cultural elements being introduced into
the design including skateboarding , BMX biking, rollerblading, outdoor entertainment, walking fitness and
community festivals.
This is the rendering of the approved Santa Rosa Skate Park. The upper right hand corner shows the existing horse shoe area and the left side of the
drawing shows the Hampian Hockey Rink.
Current status of the Santa Rosa Skate Park Project
The City’s 2009-11 Financial Plan budgeted $1,098,300 from the Parkland Development Fund for the Skate Park
and expected that an additional $373,300 would be acquired through fundraising and grants to complete the skate
park project. This was in addition to $135,000 that were previsouly allocated to study and equipment acquisition.
Staff has worked tirelessly over the past three years, with the support of stakeholders, to fundraise over $54,000
(including the Tony Hawk Foundation Grant for $25,000), but the project remained underfunded. Hundreds of
hours have been spent on grant applications and accompanying site visits and presentations. Although numerous
grant applications have been submitted, including California’s Prop 84 grant, these efforts have not been fruitful.
It is staff’s opinion that the project cannot proceed to construction without additional funding allocations from the
City. The City demographically is not “underprivileged” or “urban” enough to receive existing state grant funds,
and does not meet most grant criteria for adding new park space/acreage.
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At this time, the plans and specifications for the Santa Rosa Skate Park Project have progressed to 98%
completion. A Use Permit was approved by the City’s Planning Commission in January of 2011. The project
design was approved by the Architectural Review Committee in March 2011. The construction documents were
prepared and have been submitted to the Building Department for a building permit and are pending one final
round of staff review before being considered bid ready. From the needs assessment and Master Planning phase
which began in 2008 through the current design and construction document phase, City staff and consultants have
been working on this project for nearly five years at a cost of $260,000. ($52,000 for the needs assessment/Master
Planning efforts, $178,000 for design and bid document preparation and $30,000 for public art design and
engineering).
WORK PROGRAM CONSTRAINTS AND LIMITATIONS
The Primary Constraint is funding availablity to construct this Project
The Santa Rosa Skate Park Project has received all discretionary approvals needed from the City and the only
constraint is funding. To assist in that decision three alternatives are presented below for Council’s consideration
and direction. If Council modifies the Master Planned Project and reduces its scope, redesign will be needed.
Even with a redesign staff believes that starting construction on this project is feasible during the 2013-15
Financial Plan Period.
Recommended Project: Designed Master Planned Santa Rosa Skate Park
As designed, the Santa Rosa Skate Park meets the
needs and features identified in the Master Plan. It
includes features which address varying levels of
expertise from novice to expert. It has both bowls
and urban style areas. It was designed with
significant input and feedback from the
skateboarding community and is responsive to
their needs. This project would include the entire
skate park area of 15,500 square feet, sports
lighting, drainage improvements and a drainage
basin to improve conditions overall at Santa Rosa
Park as well as an amphitheater, entry features,
multi-use plaza, site lighting, and integrated Public
Art (funded by the Public Art program). An
additional $1,226,300 would be required from the General Fund to construct the approved Santa Rosa Skate Park.
Alternative 1: Santa Rosa Skate Park less
Site Amenities
This project would include the entire skate
park area of 15,500 square feet, sports
lighting, drainage improvements and a
drainage basin. It would not have any of the
additional cultural amenities (amphitheater,
entry features, multi-use plaza and
integrated public art). It is estimated that an
additional $861,300 from the General Fund
would be required to construct this project.
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However, the following “lost costs” would be associated with this alternative: $50,000 (Redesign), $25,000 (Tony
Hawk Grant), $15,000 (Public Art money).
Alternative 2: Santa Rosa Park Street Course Skate Park
With this alternative design only the at-grade
“street course” skate park area would be
constructed for a total of about 7,200 square
feet of skating area. There would be reduced
sports lighting, however basic site
improvements would be constructed for
accessibility purposes. This design does not
include any of the below grade skate features
(pools and snake run that were key
components of the Master Plan from input
received through the needs assessment and
community input process). It does not
include any of the cultural amenities or the
Public Art component. It is estimated that
$126,300 in additional funds would be
needed to construct this reduced project as
an alternative. The “lost costs” associated
with this alternative include: $50,000 (Redesign), $25,000 (Tony Hawk Grant), $20,000 (Public Art money),
$230,000 (Needs, Assessment, Master Planning, Design, Construction Documents).
Cost Summary
Existing Funding: To date the approved Santa Rosa Skate Park project has existing funds totaling $973,700.
These funds include the Tony Hawk Grant and donations, as well as previously encumbered Parkland
Development Funds.
The following table outlines the cost comparison of the three project alternatives.
Santa Rosa Skate Park Alternative Project Cost Comparison
Recommended Project Alternative 1 Alternative 2
Construction $1,739,000 $1,381,000 $745,000
SW Plan/Permit $20,000 $20,000 20,000
Materials Testing $20,000 $15,000 10,000
Misc., printing, etc. $3,000 $2,000 2,000
Contingency (10% ±) $168,000 $132,000 $73,000
Construction Costs $1,950,000 $1,550,000 $850,000
Const. Management $200,000 $175,000 $150,000
Const. Admin/Architect $50,000 $35,000 $25,000
Const. Mgmt. Costs $250,000 $210,000 $175,000
Redesign Fees 0 $50,000 $50,000
Total $2,200,000 $1,810,000 $1,075,000
Funds to Date $973,700 $948,700 $948,700
Funds Needed $1,226,300 $861,300 $126,300
Future maintenance funding support is anticipated upon completion of construction. Support needs include site
cleaning, pumping equipment, and specialized landscape care. Cost estimates for maintenance range between
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$6,000 and $37,000 depending upon the final project scope. This funding will be considered in the 2015-17
Financial Plan process.
STAKEHOLDERS
External to the organization stakeholders include the existing and future skateboarding community (youth and
adult), neighbors adjacent to and nearby Santa Rosa Park, businesses in the Santa Rosa Park neighborhood, local
hoteliers (who may see skateboarding enthusiast tourists) and visitors from outside of the City.
Internal stakeholders for this project include the lead Department of Parks and Recreation including the Parks and
Recreation Commission supported by Public Works Engineering, Inspection, and Parks Maintenance as well as
the Police Department from an enforcement standpoint.
ACTION PLAN
Below is a proposed Action Plan based on the approval of the recommended project. If Council were to pursue an
alternate project, some design work would need to occur and would add to the time of completion of project.
Task Date
1. Submit Application for Storm Water Permit Sept 2013
2. Receive Building and Storm Water Permits Dec 2013
3. Issue Plans and Specifications for Construction Feb 2014
4. Award Construction Contract
5. Groundbreaking
April 2014
Spring 2014
6. Start Construction June 2014
7. Complete Construction Dec 2014
8. Identify and Request Maintenance Resources Dec 2014
9. Open Santa Rosa Skate Park Jan 2015
10. Maintain and Operate the Santa Rosa Skate Park Ongoing
KEY WORK PROGRAM ASSUMPTIONS
Staff has assumed that the Tony Hawk Foundation will pull the funding if an alternative project is pursued. The
grant was awarded on the assumption that construction would be for the Master Planned Project and the reduced
projects may not meet the criteria of the grant. As noted above the Action Plan presented is for the construction of
the designed, Master Planned Project; additional steps focused on redesign, public outreach, and stakeholder
engagement and advisory body review would most likely need to be taken with any alternative project.
RESPONSIBLE DEPARTMENT
The Parks and Recreation Department is the lead department in advocating for this goal. Public Works will of
course serve as the integral department for the construction of this project. Public Works CIP Engineering Staff
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SKATE PARK
will serve as the project managers of the project as well as administrators. They will also be involved in the
construction management and inspection. Upon completion of the project Parks and Recreation would program
the use of this new facility while Public Works Parks Maintenance would maintain it.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
As previously discussed funds have been assembled to construct the Santa Rosa Master Planned Skate Park. To
date that total is $973,700. This represents Parkland Fees, the Tony Hawk Grant, and Donations. A Capital
Improvement Project to complete this project has been submitted with an additional $1,226,300 needed to
complete construction and accomplish this goal. This Major City Goal will be achieved in part with Measure Y
funding.
Cost Summary
2013-142014-152013-142014-15
Current Funding 973,700
Santa Rosa Skate Park 1,226,300
Total $02,200,000 $0
Operating Programs Capital Improvement Plan
Funding Sources
2013-142014-15
Parkland Fees, Tony Hawk Grant, Donations 973,700
General Fund 1,226,300
Total $2,200,000 $0
Capital Improvement Plan
GENERAL FUND REVENUE POTENTIAL
Additional General Fund Revenue could occur upon completion of this Skate Park if it becomes a destination for
the skateboarding community. It is expected that competitions and the amenities of the premier skate park would
draw in skaters traveling throughout California and perhaps the country. Additionally the designed project as well
as the amenities could generate rental fees for activities such as private parties, special events, Farmers Markets or
“street fairs” and concerts.
OUTCOME - FINAL WORK PRODUCT
A completed Santa Rosa Skate Park would bring a conclusion to a multi-year effort including several Major City
Goals to construct a permanent skate park for the City of San Luis Obispo.
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1-1
Parks and Recreation Commission
DRAFT MINUTES
Council Hearing Room
990 Palm Street
San Luis Obispo, CA 93401
Wednesday, November 6, 2013, 5:30 p.m.
CALL TO ORDER: Chair Davis called the meeting to order at 5:30 p.m.
ROLL CALL: Commissioners: Steve Davis, Craig Kincaid, Jeff Whitener, Susan Updegrove,
Ron Regier and Michael Parolini
ABSENT: David Hensinger
COUNCIL: Carlyn Christianson
STAFF: Shelly Stanwyck, Melissa Mudgett, Phil Dunsmore and Marti Reynolds
Public Comment
Carlyn Christianson, Council Member, thanked the department for their work on the SESLOC lease
project which was approved by Council on November 5.
Adam Stowe, San Luis Obispo Blues Baseball, gave an update on future tournament plans for summer
2014 and the status of the Blues Baseball team.
1. Consideration of Minutes
MOTION: (Updegrove/Kincaid) Approve the October 2, 2013 minutes as amended.
Approved: 6 yes: 0 no: 1 absent (Hensinger)
2. Public Art Program Review and Consideration of Skate Park Art - Mudgett
Recreation Manager Melissa Mudgett gave a presentation to the Commissioners reviewing the
Public Art Program with an overview of current projects before updating on the upcoming
construction of the SLO Skate Park Public Art project. Details on the marketing campaign,
available funding and timelines were shared. Mudgett introduced the project artists, Jed Joyce and
John Jones who shared examples of the project’s Word Art and pre-fabricated tiles as well as
information on material properties of Cor-Ten steel.
Commissioners addressed questions to Mudgett and visiting artists Joyce and Jones and discussed
shade, reflected heat, lighting options and safety considerations and then speculated on the need and
positioning of a fourth “concrete jungle” full tree structure. Mudgett discussed how total available
funding may impact the full scope of the Public Art project. Commissioner Kincaid suggested
building the base for the fourth tree (should funds be limited) to avoid the costs of retrofitting
should funding be made available at a later date. Commissioner Parolini suggested that, if only
three of the four trees were approved based upon available funding, that two trees be located at the
“entry” and one tree at the rear of the park (as opposed to all three trees at the “entrance”).
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Parks and Recreation Commission Minutes – November 6, 2013
Page 2 of 4
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Chair Davis opened Public Comment.
Gary Havas, San Luis Obispo, discussed with artists corrosion resistant properties of Cor-Ten
steel, the inclusion of lighting protection into art form and consideration of solar lighting.
D. Scott, San Luis Obispo, inquired about other cities that have Skate Parks and research done on
potential problems. Director Stanwyck gave information on the relationship that has been built with
the skateboard community, potential programs to encourage non-typical users such as female
skateboarders, plans to address graffiti.
MOTION: (Whitener/Regier). Recommend Council conceptually approve the proposed Skate Park
Public Art “Concrete Jungle” under the condition that if there is only funding for three trees, one of
the tree structures be placed in the rear of the park and that installation of concrete tree trunk bases
for all four structures be included to allow for a potential addition of a tree canopy in the future.
Approved: 6 yes: 0 no: 1 absent (Hensinger)
3. Airport Area Land Use Zoning Review as it relates to the Chevron Project – Dunsmore
Senior Planner Phil Dunsmore gave a presentation to the Commissioners reviewing the Airport Area
Land Use and the Chevron Project. He asked that the Commissioners consider the revised land use
plan for the Airport Area Specific Plan (AASP) to include a Public Facility zone and identification
of future public facility uses. Potential for sports field area in future would go before the
Commission and amendments would be made to 4.2.4 of the AASP to accommodate potential
future components. Dunsmore addressed comments and questions the Commissioners brought up at
the June 5 meeting such as parking, road link with Class I pathway and questions on wind patterns
in relation to the flower mound hill. He explained although a recreation facility is not required by
the project nor are parkland impact fees, the potential for a needs assessment exists in the future for
public facility uses. Anticipates final EIR to go before Commissioners in March 2014.
Commissioners entered into discussion regarding project, questions of future development if not
under Chevron ownership, safety zones, next steps, Tank Farm road changes, potential need for
additional fire station, management if annexed to City in future, wetland remediation, future use as
a boardwalk through significant historical site.
Chair Davis opened for Public Comment.
Bill Almas, Chevron Representative, positive about what benefits the property can provide the
community, 15-acres unsuitable for development that seems to be a good place for a recreational
field and 250-acres open space. Chevron’s part is to donate the land, Cal Ripkin would have to
supply funding to develop and maintain fields.
John Spatafore, San Luis Obispo, was part of community group involved in the building/planning
of Damon Garcia sports fields, inquired about plans to link the fields together. Urged to continue
vision of what could work well there, found better to do one activity per site (such as soccer).
Encourages higher number of fields for youth sports organizations.
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ATTACHMENT 6
Architectural Review Commission
Meting Minutes
12/2/13
TBD
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FROM: Derek Johnson, Community Development Director
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN
LUIS OBISPO REGARDIN G A NINETEEN UNIT SENIOR RENTAL
HOUSING PROJECT LOCATED AT 433 PACIFIC STREET KNOWN AS
THE CARMEL STREET APARTMENTS
RECOMMENDATION
1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA)
of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986.
2. Adopt a resolution allowing the reissuance of multifamily housing revenue bonds by the
Housing Authority of the City of San Luis Obispo for the Carmel Street Apartments
located at 433 Pacific Street.
DISCUSSION
Background
The Housing Authority of the City of San Luis Obispo (the “Authority”) is requesting that the
Council hold a public hearing regarding the reissuance of tax-exempt bonds that financed the
construction of the Carmel Street Apartments located at 433 Pacific Street. Although there is no
financial participation (or liability, direct or indirect) by the City in approving the reissuance of
this “conduit” financing, Council conduct of a public hearing and approval of the reissuance is
required under federal regulations for tax-exempt financing.
Project Summary
1. Carmel Street Apartments is a 19 unit affordable rental apartment facility for seniors located
at 433 Pacific Street (the “Project”). The Project is owned by Carmel Street Associates, a
California limited partnership (the “Borrower”), of which the San Luis Obispo Non-Profit
Housing Corporation (a nonprofit corporation established by the Authority) is the general
partner.
2. The construction of the Project was financed with the proceeds of a $1,550,000 bond (the
“Bonds”) issued by the Authority on April 4, 2002. The Bonds were purchased by First Bank
of San Luis Obispo (“FBSLO”). Through a series of bank mergers and acquisitions, the
Bonds are now owned by Union Bank, N.A.
Meeting Date
Item Number 12-10-13
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Conduit Reissuance Request: Housing Authority of the City of San Luis Obispo Page 2
3. In order for the interest on the Bonds to be tax-exempt, on October 16, 2001, the Council
conducted a public hearing regarding the financing of the Project under the Tax Equity and
Fiscal Responsibility Act of 1982 (“TEFRA”), and pursuant to the requirements of the
Internal Revenue Code of 1986. Council adopted Resolution No. 9238 (2001 Series)
approving the issuance of the Bonds by the Authority to finance the Project (Attachment 1).
4. Union Bank, N.A., the current owner of the Bonds, has now agreed to lower the interest rate
on the Bonds from 6.80% to 4.50%, which modification to the terms of the Bonds will result
in a “reissuance” of the Bonds for federal tax purposes. The reissuance of the Bonds requires
that the Council hold a TEFRA public hearing regarding the reissuance and to adopt a
resolution approving the reissuance by the Authority of the Bonds, in order to maintain the
tax-exempt status of the interest on the Bonds.
No City Liability for the Financing
There is no City liability in approving the reissuance of conduit financing. The bonds are payable
solely from the payments by the Borrower on a loan made to it (the “Borrower Loan”) by the
Authority from the proceeds of the Bonds. The rental payments by tenants in the Project are the
source of revenue used by the Borrower to repay the Borrower Loan. The City has no financial,
legal, or moral obligation, liability or responsibility for the Project or for the repayment of the
Bonds or the repayment of the Borrower Loan. The documents for the Bonds clearly provide that
the Bonds are payable solely from payments on the Borrower Loan made by the Borrower.
Outside of holding this hearing and adopting the required resolution, no other participation or
activity of the City with respect to the bonds will be required.
City’s Conduit Financing Policy
While the Council is not obligated to approve this request, it would be consistent with past City
actions regarding the Project.
Under the City’s debt financing and management policies, consideration of a request for conduit
financing is generally a two-step process:
1. First asking the Council if they are interested in considering the request and establishing
the ground rules for evaluating it.
2. And then returning with the results of this evaluation and recommending approval of
appropriate financing documents if warranted.
This two-step approach was completed in 2001 when the Council conducted the original TEFRA
hearing for the Bonds and adopted Resolution No. 9328 (2001 Series) approving the issuance of
the Bonds by the Authority to finance the Project (Attachment 1).
City’s Past Experience with Conduit Housing Bonds
The City has approved seven “conduit” housing bond issues in the past as reflected in the
following summary. There have been no financial difficulties with any of these bond issues.
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Conduit Reissuance Request: Housing Authority of the City of San Luis Obispo Page 3
1. 1985. 168-unit apartment development on Southwood Drive (refinanced in 1993).
2. 1998. 30-unit development (all “affordable” for seniors and persons with disabilities) on
Brizzolara Street.
3. 1999. 122-unit apartment development by the De Vaul Ranch Company, of which 26 units
will be affordable—24 for “very-low” and 2 for “moderate” income households.
4. 2002. 19-unit seniors apartment development at 433 Pacific Street (Pacific and Carmel).
5. 2005. 40 affordable one-bedroom units for seniors as well as one manager’s unit in an
existing historic single-family residence at 2005 Johnson Avenue (“Del Rio Terrace”).
6. 2009 and 2011. 8-unit housing project at 1468 East Foothill Boulevard for the University
Board of the Santa Barbara Presbytery.
7. 2012. 120-unit apartment project affordable to low and very-low income households located
at 1550 Madonna Road.
Next Steps
After the TEFRA public hearing and adoption of the Resolution of the Council approving the
reissuance of the Bonds, the Authority, the Borrower and Union Bank, N.A. will enter into
documents reducing the interest rate on the Bonds from 6.80% to 4.50%. There will be no further
actions required by the City.
FISCAL IMPACT
There are no fiscal impacts to the City associated with this matter. As noted above, the City has
no liability, directly or indirectly, for the financing.
ALTERNATIVES
1. Do not approve the reissuance of bonds by the Authority. Given the approvals that the
Project has already received from the City and the lack of any liability for repayment of the
Bonds by the City, this option is not recommended.
2. Defer consideration of the request. Due to the savings in interest costs resulting from the
reissuance of the Bonds, this option is not recommended.
ATTACHMENT
1. Council Resolution No. 9238 (2001 Series)
2. Draft Council Resolution approving the reissuance of bonds by the Authority
T:\Council Agenda Reports\2013\2013-12-10\TEFRA Hearing for Carmel St. (Johnson-Corey)\PH1 - TEFRA Hearing for Carmel Street
Apartments.docx
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Attachment 1
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Attachment 1
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Attachment 2
RESOLUTION NO. XXXX-13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO APPROVING THE REISSUANCE
OF MULTIFAMILY HOUSING REVENUE BONDS BY THE HOUSING
AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE CARMEL
STREET APARTMENTS LOCATED AT 433 PACIFIC STREET
WHEREAS, the Housing Authority of the City of San Luis Obispo (the “Authority”) is
authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of
California, as amended (the “Law”), to issue bonds to finance multifamily rental housing
facilities located within the area of operation of the Authority; and
WHEREAS, on April 4, 2002, the Authority issued $1,550,000 principal amount of its
Housing Authority of the City of San Luis Obispo Multifamily Housing Revenue Bonds (Carmel
Street Apartments), Series 2002A (the “Bonds”) pursuant to an Indenture of Trust, dated as of
April 1, 2002 (the “Indenture”), between the Authority and First Bank of San Luis Obispo, as the
then bondowner representative; and
WHEREAS, the Authority loaned the proceeds of the Bonds (the “Loan”) to Carmel
Street Associates, a California limited partnership (the “Borrower”) pursuant to a Loan
Agreement, dated as of April 1, 2002 (the “Loan Agreement”), between the Authority and the
Borrower; and
WHEREAS, the Borrower used the proceeds of the Loan to finance the acquisition and
construction of 19 units of multifamily rental housing known as Carmel Street Apartments (the
“Project”), located at 433 Pacific Street in the City of San Luis Obispo (the “City”); and
WHEREAS, the Bonds are considered to be “qualified exempt facility bonds” under
Section 142(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and Section
147(f) of the Code requires that the “applicable elected representative” with respect to the
Authority approve the issuance of the Bonds by the Authority following the holding of a public
hearing with respect thereto; and
WHEREAS, the Authority determined that the Council of the City was the “applicable
elected representative” to approve the issuance of the Bonds by the Authority and on October 16,
2001, the Council held a public hearing regarding issuance of the Bonds and adopted Resolution
No. 9238 (2001 Series) approving the issuance of the Bonds by the Authority for the purpose of
providing financing to the Borrower for the Project; and
WHEREAS, the City is not a party to any of the agreements or other documents relating
to the Bonds or the financing of the Project, and neither the financing of the Project nor the
Bonds impose any legal, financial or moral obligation upon the City with respect to the financing
of the Project; and
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Attachment 2
WHEREAS, Union Bank, N.A. (the “Bank”), has succeeded to the interests of the
bondowner representative under the Indenture and is the current owner of the Bonds; and
WHEREAS, the Bank has agreed to allow modifications to be made to the Indenture and
the Loan Agreement to lower the interest rate on the Bonds and on the Loan, but such
modifications will, under the Code, cause a “reissuance” of the Bonds; and
WHEREAS, in order to maintain the tax-exempt status of the interest on the Bonds paid
by the Authority to the Bank, prior to the modification of the Indenture and the Loan Agreement,
the Authority needs the Council to approve the reissuance of the Bonds following a public
hearing on the matter; and
WHEREAS, notice of the required public hearing has been duly given as required by the
Code, and the Council has heretofore held the public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the reissuance of the Bonds and the
ownership and operation of the Project; and
WHEREAS, it is in the public interest and for the public benefit that the Council approve
the reissuance of the Bonds for the aforesaid purposes.
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows:
Section 1. Action. The Council of the City of San Luis Obispo hereby approves the
reissuance of the Bonds by the Authority for purposes of the Code. This resolution shall take
effect immediately upon its adoption.
Upon motion of , seconded by , and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 10th day of December, 2013.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony J. Mejia
City Clerk
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Attachment 2
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick
City Attorney
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FROM: Derek Johnson, Community Development Director
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN
LUIS OBISPO REGARDING A FORTY-ONE UNIT SENIOR RENTAL
HOUSING PROJECT LOCATED AT 2005 JOHNSON AVENUE KNOWN
AS THE DEL RIO TERRACE APARTMENTS
RECOMMENDATION
1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA)
of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986.
2. Adopt a resolution allowing the reissuance of a Loan by the Housing Authority of the
City of San Luis Obispo for the Del Rio Terrace Apartments located at 2005 Johnson
Avenue.
DISCUSSION
Background
The Housing Authority of the City of San Luis Obispo (the “Authority”) is requesting that the
Council hold a public hearing regarding the reissuance of a tax-exempt Loan that financed the
construction of the Del Rio Terrace Apartments located at 2005 Johnson Avenue. Although
there is no financial participation (or liability, direct or indirect) by the City in approving the
reissuance of this “conduit” financing, Council conduct of a public hearing and approval of the
reissuance is required under federal regulations for tax-exempt financing.
Project Summary
1. Del Rio Terrace Apartments is a 40 unit (plus one manager’s unit) affordable rental
apartment facility for seniors located at 2005 Johnson Avenue (the “Project”). The Project is
owned by Johnson DRT Associates, a California limited partnership (the “Borrower”), of
which the San Luis Obispo Non-Profit Housing Corporation (a nonprofit corporation
established by the Authority) is the general partner.
2. The construction of the Project was financed with the proceeds of a $4,000,000 Loan (the
“Loan”) made to the Authority on October 31, 2005, by First Bank of San Luis Obispo
(“FBSLO”). Through a series of bank mergers and acquisitions, the Loan is now owned by
Union Bank, N.A.
Meeting Date
Item Number 12-10-13
PH2 - 1
Conduit Reissuance Request: Housing Authority of the City of San Luis Obispo Page 2
3. In order for the interest on the Loan to be tax-exempt, on May 6, 2003, the Council
conducted a public hearing regarding the financing by the Authority of the Project under the
Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”), and pursuant to the
requirements of the Internal Revenue Code of 1986, on that date the Council adopted
Resolution No. 9450 (2003 Series) approving the Loan by FBSLO to the Authority to finance
the Project (Attachment 1).
4. The expected April 30, 2005 completion of the Project was delayed due to circumstances
beyond the control of the Authority. As a consequence of the delay, FBSLO agreed to make
various modifications to the documents for the Loan, which modifications resulted in a
“reissuance” of the Loan for federal tax purposes. Applicable federal tax law required that
the Council approve the then reissuance of the Loan following the conduct of a TEFRA
hearing regarding the reissuance, in order to maintain the tax-exempt status of the interest on
the Loan.
5. On July 19, 2005, the Council held a TEFRA public hearing regarding the then reissuance of
the Loan and adopted Resolution No. 9709 (2005 Series) approving the reissuance by the
Authority of the Loan (Attachment 2).
6. Union Bank, N.A., the current owner of the Loan, has now agreed to lower the interest rate
on the Loan from 7.50% to 4.50%, which modification to the terms of the Loan will result in
another “reissuance” of the Loan for federal tax purposes. As with the reissuance of the
Loan in 2005, this new reissuance of the Loan once again requires that the Council hold a
TEFRA public hearing regarding the new reissuance and to adopt a resolution approving the
new reissuance by the Authority of the Loan, in order to maintain the tax-exempt status of
the interest on the Loan.
No City Liability for the Financing
There is no City liability in approving the reissuance of conduit financing. The Loan is payable
solely from the payments by the Borrower on a Loan made to it (the “Borrower Loan”) by the
Authority from the proceeds of the Loan. The rental payments by tenants in the Project are the
source of revenue used by the Borrower to repay the Borrower Loan. The City has no financial,
legal, or moral obligation, liability or responsibility for the Project or for the repayment of the
Loan or the repayment of the Borrower Loan. The documents for the Loan clearly provide that
the Loan is payable solely from payments on the Borrower Loan made by the Borrower. Outside
of holding this hearing and adopting the required resolution, no other participation or activity of
the City with respect to the Loan will be required.
City’s Conduit Financing Policy
While the Council is not obligated to approve this request, it would be consistent with past City
actions regarding the Project.
Under the City’s debt financing and management policies, consideration of a request for conduit
financing is generally a two-step process:
PH2 - 2
Conduit Reissuance Request: Housing Authority of the City of San Luis Obispo Page 3
1. First asking the Council if they are interested in considering the request and establishing
the ground rules for evaluating it.
2. And then returning with the results of this evaluation and recommending approval of
appropriate financing documents if warranted.
This two-step approach was completed in 2003 when the Council conducted the original TEFRA
hearing for the Loan and adopted Resolution No. 9450 (2003 Series) approving the Loan by
FBSLO to the Authority to finance the Project (Attachment 1).
City’s Past Experience with Conduit Housing Bonds
The City has approved seven “conduit” housing bond issues in the past as reflected in the
following summary. There have been no financial difficulties with any of these bond issues.
1. 1985. 168-unit apartment development on Southwood Drive (refinanced in 1993).
2. 1998. 30-unit development (all “affordable” for seniors and persons with disabilities) on
Brizzolara Street.
3. 1999. 122-unit apartment development by the De Vaul Ranch Company, of which 26 units
will be affordable—24 for “very-low” and 2 for “moderate” income households.
4. 2002. 19-unit seniors apartment development at 433 Pacific Street (Pacific and Carmel).
5. 2005. 40 affordable one-bedroom units for seniors as well as one manager’s unit in an
existing historic single-family residence at 2005 Johnson Avenue (“Del Rio Terrace”).
6. 2009 and 2011. 8-unit housing project at 1468 East Foothill Boulevard for the University
Board of the Santa Barbara Presbytery.
7. 2012. 120-unit apartment project affordable to low and very-low income households located
at 1550 Madonna Road.
Next Steps
After the TEFRA public hearing and adoption of the Resolution of the Council approving the
reissuance of the Loan, the Authority, the Borrower and Union Bank, N.A. will enter into
documents reducing the interest rate on the Bonds from 7.50% to 4.50%. There will be no further
actions required by the City.
FISCAL IMPACT
There are no fiscal impacts to the City associated with this matter. As noted above, the City has
no liability, directly or indirectly, for the financing.
PH2 - 3
Conduit Reissuance Request: Housing Authority of the City of San Luis Obispo Page 4
ALTERNATIVES
1. Do not approve the reissuance of bonds by the Authority. Given the approvals that the
Project has already received from the City and the lack of any liability for repayment of the
Loan by the City, this option is not recommended.
2. Defer consideration of the request. Due to the savings in interest costs resulting from the
reissuance of the Loan, this option is not recommended.
ATTACHMENT
1. Council Resolution No. 9450 (2003 Series)
2. Council Resolution No. 9709 (2005 Series)
3. Draft Council Resolution approving the reissuance of the Loan by the Authority
T:\Council Agenda Reports\2013\2013-12-10\TEFRA Hearing for Del rio (Johnson-Corey)\PH1 - TEFRA Hearing for Del Rio Terrace
Apartments.docx
PH2 - 4
Attachment 1
PH2 - 5
Attachment 1
PH2 - 6
RESOLUTION NO. 9709 (2005 SERIES )
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
APPROVING THE REISSUANCE OF A LOAN OF THE HOUSIN G
AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE PURPOSE O F
PROVIDING FINANCING FOR A RESIDENTIAL RENTAL HOUSIN G
FACILITY SPONSORED BY THE SAN LUIS OBISPO NON-PROFIT HOUSIN G
CORPORATION-DEL RIO TERRACE APARTMENT S
WHEREAS,the Housing Authority of the City of San Luis Obispo (the "Authority") i s
authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State o f
California, as amended (the "Law"), to make bonds to finance housing developments as specified
in the Law ; and
WHEREAS,the Authority has entered into a Loan Agreement, dated as of October 1 ,
2003 (the "Loan Agreement") with the First Bank of San Luis Obispo (the "Bank"), pursuant t o
which the Bank agreed to make a loan to the Authority (the "Loan") in an amount of up t o
$4,000,000, and on October 31, 2003 (the "Date of Issuance") the Bank made the first advance o f
$54,000 of the principal of the Loan to the Authority ; and
WHEREAS,the Authority has entered into a Loan Agreement, dated as of October, 1 ,
2003, with Johnson DRT Associates, a California limited partnership (the "Borrower") of whic h
the San Luis Obispo Non-Profit Housing Corporation, a California nonprofit public benefi t
corporation is the sole general partner, whereby the Authority has agreed to loan the proceeds o f
the Loan to the Borrower to enable the Borrower to finance the acquisition and construction of a
41 unit residential rental housing facility for seniors to be located at 2005 Johnson Avenue in th e
City of San Luis Obispo (the "Project"); and
WHEREAS,the Loan is considered to be a "qualified exempt facility bond" unde r
Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Sectio n
147(f) of the Code requires that the "applicable elected representative" with respect to th e
Authority approve the incurrence of the Loan by the Authority following the holding of a publi c
hearing with respect thereto ; and
WHEREAS,the Authority determined that the Council of the City was the "applicabl e
elected representative" to approve the incurrence of the Loan by the Authority and on May 6 ,
2003, the Council held a public hearing regarding the Loan and adopted a Resolution approvin g
the incurrence of the Loan by the Authority for the purpose of providing financing to th e
Borrower for the Project ; and
WHEREAS,the City is not a part to any of the agreements or other documents relatin g
to the financing of the Project, and neither the financing of the Project nor the Loan will impos e
any legal, financial or moral obligation upon the City with respect to the financing of the Project ;
and
WHEREAS,the Loan Agreement contemplated that the Project would be full y
constructed by April 30, 2005, and, due to construction delays it now appears that th e
construction of the Project will not be completed until December 31, 2005 ; and
R9709
Attachment 2
PH2 - 7
Resolution No . 9709 (2005 Series )
Page 2
WHEREAS,the Bank has agreed to allow modifications to be made to the Loan
Agreement to extend the construction period of the Loan, and the maturity date of the Loan t o
accommodate the additional time necessary to construct the Project, but such modifications will ,
under the Code, cause a "reissuance" of the Loan ; and
WHEREAS,in order to maintain the tax-exempt status of the interest on the Loan pai d
by the Authority to the Bank, prior to the modification of the Loan Agreement, the Authorit y
needs the Council to approve the reissuance of the Loan following a public hearing on the matter ;
and
WHEREAS,notice of said public hearing has been duly given as required by the Code ,
and the Council has heretofore held such public hearing at which all interested persons wer e
given an opportunity to be heard on all matters relative to the financing of the Project and th e
Authority's reissuance of the Loan and the Authority's loan of the proceeds thereof to th e
Borrower ; an d
WHEREAS,it is consistent with the General Plan, in the public interest and for th e
public benefit that the Council approve the reissuance of the Loan for the aforesaid purposes .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo, as follows :
Section 1 .The Council of the City of San Luis Obispo hereby approves the reissuance o f
the Loan by the Authority under the Code in the amount of up to four million dollar s
($4,000,000), and the use of the proceeds of the reissued Loan to make a loan to the Borrower t o
enable the Borrower to finance the acquisition and construction of the Project .
Section 2. This Resolution shall take effect immediately upon its adoption .
On motion of Vice Mayor Ewan, seconded by Council Member Brown ,
and on the following roll call vote :
AYES :
Council Members Brown and Mulholland, Vice Mayor Ewan and Mayo r
Romero
NOES :
Non e
ABSENT :
Council Member Settle
The foregoing resolution was adopted this 19 th day of July 2005 .
Attachment 2
PH2 - 8
Resolution No. 9709 (2005 Series )
Page 3
Mayor David F . Romero
ATTEST :
APPROVED AS TO FORM :
Jon is . Lowell
City Attorney
Attachment 2
PH2 - 9
Attachment 3
RESOLUTION NO. XXXX-13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO APPROVING THE REISSUANCE
OF A MULTIFAMILY HOUSING REVENUE LOAN BY THE HOUSING
AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE DEL RIO
TERRACE APARTMENTS LOCATED AT 2005 JOHNSON AVENUE
WHEREAS, the Housing Authority of the City of San Luis Obispo (the “Authority”) is
authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of
California to issue bonds and borrow money to finance multifamily rental housing facilities
located within the area of operation of the Authority; and
WHEREAS, on October 31, 2003, the Authority borrowed $4,000,000 (the “Authority
Loan”) from First Bank of San Luis Obispo (the “Original Bank”) pursuant to a Loan
Agreement, dated as of October 1, 2003 (the “Authority Loan Agreement”), between the
Authority and the Original Bank; and
WHEREAS, the Authority loaned (the “Borrower Loan”) the proceeds of the Authority
Loan to Johnson DRT Associates, a California limited partnership (the “Borrower”) pursuant to a
Loan Agreement, dated as of October 1, 2003 (the “Borrower Loan Agreement”), between the
Authority and the Borrower; and
WHEREAS, the Borrower used the proceeds of the Borrower Loan to finance the
acquisition and construction of 41 units of multifamily rental housing for seniors known as Del
Rio Terrace Apartments (the “Project”), located at 2005 Johnson Avenue in the City of San Luis
Obispo (the “City”); and
WHEREAS, the Authority Loan is considered to be “a qualified exempt facility bond”
under Section 142(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and
Section 147(f) of the Code requires that the “applicable elected representative” with respect to
the Authority approve the incurrence by the Authority of the Authority Loan following the
holding of a public hearing with respect thereto; and
WHEREAS, the Authority determined that the Council of the City was the “applicable
elected representative” to approve the incurrence by the Authority of the Authority Loan and on
May 6, 2003, the Council held a public hearing regarding Authority Loan and adopted
Resolution No. 9450 (2003 Series) approving the incurrence by the Authority of the Authority
Loan for the purpose of providing financing to the Borrower for the Project; and
WHEREAS, in July of 2005, the Original Bank agreed with the Authority and the
Borrower to amend the Authority Loan Agreement, the Borrower Loan Agreement and related
documents to modify certain terms of the Authority Loan and the Borrower Loan; and
WHEREAS, the amendments resulted in a “reissuance” of the Authority Loan under
PH2 - 10
Attachment 3
applicable provisions of the Code and in order to maintain the tax-exempt status of the interest
on the Authority Loan the Council held a public hearing on July 19, 2005 regarding the
reissuance of the Authority Loan and the ownership and operation of the Project, and on that date
the Council adopted Resolution No. 9709 (2005 Series) approving the reissuance by the
Authority of the Authority Loan; and
WHEREAS, Union Bank, N.A. (the “Bank”), has succeeded to the interests of the
Original Bank under the Authority Loan Agreement and is the current payee of the Authority
Loan; and
WHEREAS, the Bank has now agreed to allow modifications to be made to the Authority
Loan Agreement and the Borrower Loan Agreement to lower the interest rate on the Authority
Loan and on the Borrower Loan, but such modifications will, under the Code, cause another
“reissuance” of the Authority Loan; and
WHEREAS, in order to maintain the tax-exempt status of the interest on the Authority
Loan paid by the Authority to the Bank, prior to the modification of the Authority Loan
Agreement and the Borrower Loan Agreement, the Authority needs the Council to approve the
new reissuance of the Authority Loan following a public hearing on the matter; and
WHEREAS, notice of the required public hearing has been duly given as required by the
Code, and the Council has heretofore held the public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the reissuance of the Authority Loan
and the ownership and operation of the Project; and
WHEREAS, the City is not a party to any of the agreements or other documents relating
to the Authority Loan, the Borrower Loan or the financing of the Project, and none of the
financing of the Project, the Authority Loan or the Borrower Loan impose any legal, financial or
moral obligation upon the City with respect to the financing of the Project; and
WHEREAS, it is in the public interest and for the public benefit that the Council approve
the reissuance of the Authority Loan for the aforesaid purposes.
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows:
Section 1. Action. The Council of the City of San Luis Obispo hereby approves the
reissuance of the Authority Loan by the Authority for purposes of the Code. This resolution shall
take effect immediately upon its adoption.
Upon motion of , seconded by , and on the
following vote:
AYES:
NOES:
ABSENT:
PH2 - 11
Attachment 3
The foregoing resolution was passed and adopted this 10th day of December, 2013.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick
City Attorney
PH2 - 12
FROM: Wayne Padilla, Director of Finance and Information Technology
SUBJECT: Review of the 2012-13 Fiscal Year Annual Report on Development Impact Fees and
Consideration of a Resolution Accepting the Report and Making Certain Findings
Related to Impact Fee Balances
RECOMMENDATION:
1. Review the 2012-13 Fiscal Year Report on Development Impact Fees
2. Adopt the Resolution Accepting the Report and Making Certain Findings Related to Impact Fee
Balances and In-Lieu Fees
DISCUSSION:
Government Code Section 66000 et al (AB 1600) requires public agencies to review on an annual
basis the status of collected development impact fees. Staff has prepared this report in compliance
with the requirements of AB 1600 and the required disclosures include the worksheets that follow.
These worksheets identify the amount of each fee collected, the disbursements made from each fee
type and the amount of interest apportioned to each fee balance during the 2012-13 fiscal year.
Also, a worksheet has been prepared that reflects, for each fee type, the aging of the balance held by
the City. This report has been available for public inspection 15 days prior to tonight’s meeting in
the Finance Department. Notice was posted on the City Clerk’s bulletin board in front of City Hall.
The schedules referred to above provide a breakdown of the individual fee balances on hand as of
June 30, 2013 based on unaudited information. The statutes specify that this report shall include the
following information:
1. The amount of developer fees disbursed on each project for the year just ended.
2. The amount of developer fees collected for the year just ended.
3. The amount of interest earned by the developer fees for the year just ended.
4. Any other income received that is related to the projects, if applicable.
5. The beginning and ending fund balance for each development fee account.
6. The total cost of projects undertaken during the last year and the percentage of the project
cost paid out of developer fees.
7. The identification of an approximate date by which the construction of the public
improvement will commence if the local agency determines that sufficient funds have been
collected to complete financing on an incomplete public improvement and the public
improvement remains incomplete.
8. The amount and purpose of all interfund transfers during the last year.
9. The following is a brief description of the purpose of the fee and the nature of projects
funded in the current year.
Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities within the City. There
were eleven active projects funded by this fee during the most recent fiscal year. The largest of
Meeting Date
Item Number Dec. 10, 2013
B1 - 1
AB 1600 Annual Report Page 2
those projects include the Los Osos Valley Road/US101 Interchange and Mid-Higuera
Improvement Project. There were no fully funded projects that were incomplete as of June 30,
2013. At June 30, 2013 the account held $2,933,565 and $402,061 of that total is more than 5 years
old. In approving and accepting this year’s report, the City Council should make a finding that the
funds held for at least five years are being held to complete certain projects identified by the related
impact fee study. Funds held for at least five years are to be retained to complete projects listed
above and to fund additional projects such as the Railroad Bike Safety Trail improvement project.
Airport Area Impact Fee
This impact fee was established for the expansion of transportation facilities in and around the
airport area. The only project funded during the fiscal year from these fees was the Tank Farm /
Broad Street intersection. There were no other fully funded projects that were incomplete as June
30, 2013. At June 30, 2013 the account held $707,808 of which $572,939 has been held for at least
five years. In approving and accepting this year’s report, the City Council should make a finding
that the funds held for at least five years are being held to complete certain projects identified by the
related impact fee study. Funds held for at least five years are to be retained to complete projects
listed above and to fund additional projects such as the Santa Fe Road and Unocal
Collector/Buckley Road extensions.
Los Osos Valley Road Impact Fee
This impact fee was established for the expansion of capacity for Los Osos Valley Road. During
the recent fiscal year, the city recorded a liability for the reimbursement owed to a developer for a
previous expense. There were no fully funded projects that were incomplete as of June 30, 2013.
At June 30, 2013 the account held $147,616, none of which is over five years old.
Water Impact Fees
This fee was established for the expansion and improvement of facilities used for water supply,
water treatment and water distribution. There were no other fully funded projects that were
incomplete as of June 30, 2013. At June 30, 2013 the account held $2,301,456, none of which is
over five years old.
Sewer Impact Fee
This impact fee was established for the expansion and improvement of facilities used for sewer
collection and sewer treatment. There were no other fully funded projects that were incomplete as
of June 30, 2013. At June 30, 2013 the account was in deficit in the amount of $1,891,931, none of
which is over five years old.
Other Fees Presented
Parkland Impact Fee
This fee was established under the Quimby Act and as such is not an Impact Fee. The fee is charged
against residential development for the expansion of parkland, park facilities and other recreational
structures and is presented here for information purposes only. The only outflow of funding from
this fee for the most recent fiscal year was for the Skate Park design work. There were no fully
funded projects that were incomplete as of June 20, 2013. At June 30, 2013 the account held
B1 - 2
AB 1600 Annual Report Page 3
$1,236,786 and of this amount $651,534 has been held for more than 5 years. There is no limit to
the time the City can retain these fees; however, we report it here as an information item.
Open Space In-Lieu Fees
This fee was established for the acquisition and expansion of open space for the City and is not an
Impact Fee as defined by AB 1600. The only expenditure for the fiscal year in this account was for
the Froom Ranch Improvement. There were no other fully funded projects that were incomplete as
of June 30, 2013. At June 30, 2013 the account held $195,026 and of this amount, $11,997 has
been held for more than 5 years. There is no limit to the time the City can retain these fees;
however, we report it here as an information item.
Affordable Housing Inclusionary Impact Fees
This impact fee was established for funding affordable housing inclusionary programs in the City
and is also not an impact fee as defined by AB 1600. The only expenditure for the fiscal year in this
account was a contribution to the SLO County Housing Trust Fund which was recently authorized
by the City Council. There were no other fully funded projects that were incomplete as of June 30,
2013. At June 30, 2013 the account held $1,928,669. There is no limit to the time the City can
retain these fees; however, we report it here as an information item.
CONCURRENCES
The Public Works and Utilities Departments concur with the recommendations contained within
this report.
FISCAL IMPACT
This report recommends making the findings called for in the resolution in order to allow the impact
fees that are 5 years old to be retained by the City to fund identified projects. In the event that these
findings are not made, the monies that are 5 years old must be returned to the developers that paid
the fees. The in-lieu fees which have balances that have been held for at least 5 years are not
subject to the same finding requirement to allow their retention, but staff has included a finding in
the resolution affirming the need for retention of these monies.
ALTERNATIVES
Council could choose not to make the findings called for in this report. This is not recommended
since it means that impact fees that were collected for future projects must be refunded to the
developers who paid them and the City will lack the funds necessary to complete the planned
projects.
ATTACHMENTS
1. Resolution
2. Fee Analysis Schedules
3. Fee schedules
B1 - 3
Attachment 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN LUIS OBISPO, CALIFORNIA ACCEPTING THE 2012-13
ANNUAL REPORT ON DEVELOPMENT IMPACT FEES AND
MAKING CERTAIN FINDINGS RELATED THERETO
WHEREAS, California Government Code 66006 requires an annual public review of all
impact fee accounts maintained by a public agency such as the City of San Luis Obispo
within 180 days of the fiscal year end; and
WHEREAS, California Government Code 66001 requires the governing body to make
certain findings related to impact fee balances on hand longer than five years; and
WHEREAS, staff has prepared the 2012-13 Annual Report on Development Impact Fees
in compliance with the Government Code and which is incorporated by reference herein
and which has been available for public inspection at least 15 days prior to this regularly
scheduled meeting; and
WHEREAS, the Airport Area Impact Fee and Transportation Impact Fee Funds each
have a portion of their balance that has been on deposit for five years or more; and
WHEREAS, The Parkland In-Lieu Fee and Open Space In-Lieu Fee Funds each have a
portion of their balance that has been on deposit for five years or more and while not
subject to the time limit for retention of those monies imposed by AB 1600, the City
Council desires to affirm the need to retain these monies for use in funding the future
capital improvements for which these monies were collected; and
WHEREAS, additional funds need to be accumulated in such fee accounts before such
funds are sufficient to construct the facilities for which the fees were collected.
NOW, THEREFORE, the City Council of the City of San Luis Obispo hereby finds
orders and resolves as follows:
1. All of the above recitals are true and correct.
2. The 2012-13 Annual Report on Development Impact Fees is accepted.
3. A copy of the approved resolution shall be forwarded to the Director of Finance
for use in overseeing these monies.
4. The balances in the Airport Area Impact Fee, Transportation Impact Fee, Open
Space In-Lieu and Parkland In-lieu Fee Funds are necessary for the completion of
those projects that are identified in the Fee Studies for which they were collected,
B1 - 4
Attachment 1
in accordance with Sections 66001 and 66006 of the California Government Code
and other applicable regulations.
* * * * * *
Upon motion of _______________________, seconded by _______________________, and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 10th day of December, 2013.
____________________________________
Mayor Jan Howell-Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
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The following schedule represents the per unit charge for the fees
shown
Attachment 3
1B1 - 25
Attachment 3
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Attachment 3
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FROM: Wayne Padilla, Director of Finance & Information Technology
SUBJECT: UPDATE ON THE CITY’S FISCAL STATUS AND STATUS OF MAJOR
CITY GOALS
RECOMMENDATION
1. Review and discuss an update on the City’s fiscal status based on unaudited 2012-13
year-end financial results and first quarter trends in 2013-14.
2. Review and discuss the status of the City’s progress in accomplishing the Major City
Goals adopted by Council for 2013-15.
REPORT IN BRIEF
This report provides information on three related topics:
• 2012-13 unaudited financial results.
• 2013-14 fiscal outlook for the General Fund and the Enterprise Funds.
• Update of progress on Major City Goals and Other Important Objectives.
Interim financial results for the 2012-13 year reflect a number of positive outcomes. First,
realized General Fund revenues exceeded budget estimates by $1.4 million, even after the
deferral of $300,000 in Development Fees into the current year to pay for the cost of
development plan reviews. Transient Occupancy Taxes exceeded the pre-recession peak in
2011-12 and have continued to grow, increasing by 6.7% in 2012-13. Property taxes grew for the
first time in three years, reflecting 2% growth over the prior year. These results confirm that the
City is realizing slow, steady growth in the major revenues of the General Fund and is no longer
facing the budget shortfalls of two years ago. With respect to expenses, the General Fund
realized savings of $2,700,000 or 4.5% of the budget, after taking into account the annual
rollover of encumbrances to the current year that represents future obligations to vendors totaling
$1,756,000. The expenditure savings came from a variety of spending categories and across all
departments.
With respect to the Water and Sewer Enterprise Funds, revenues exceeded budget estimates by a
wide margin, mainly because operating revenues from the final quarter were much stronger than
anticipated and development impact fees surged during the same period. Water Fund impact
fees exceeded the budget by $618,000 while operating revenues came in $530,000 over the
budget estimate. These amounts were partially offset by lower interest income which was
$225,000 below the budget estimate. The Sewer Enterprise Fund revenues were $1.1 million
over the budget estimate. Development Impact fees accounted for $100,000 of the difference
while service charges came in $1.0 million more than was expected after the last budget revision
in June.
The City has made great strides on the path to fiscal sustainability since the last formal update to
the General Fund Five-Year Fiscal Forecast two years ago. This forecast concludes that the City
is no longer facing continuing long term structural budget gaps of the nature projected in the
same forecast two years ago. However, one cannot overlook that forecast revenues will be
12-10-13
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Update on the City’s Fiscal Status and Major City Goals Page 2
reduced by more than $7 million in the event that the Measure Y revenue stream is not continued
past April 2015.
The City has an ambitious portfolio of work to be accomplished during 2013-15. Attachment 1
includes a detailed report on the status of Major City Goals and Other Important Objectives set
by the Council as part of the 2013-15 Financial Plan. The status is provided as of November 1,
2013.
Important progress has been made on all seven Major City Goals and the three Other Important
Objectives. Summarized later in this report are some high profile accomplishments that are
worthy of further attention including the full implementation of the Community Action Team by
the Police Department, steps taken to enhance the Park Ranger Service, the completion of two
important bicycle-oriented projects and achievement of a major milestone in the efforts to adopt
an updated Land Use and Circulation Element. Overall the efforts being dedicated to Major City
Goals, departmental work programs and day-to-day service are paying dividends in terms of
service to the community.
DISCUSSION
Unaudited 2012-13 Year-End Results Summary
While the annual outside audit is not yet complete, staff believes the following information is
sufficiently accurate to portray the financial results that were achieved as of June 30, 2013. 2012-
13. Final audited financial statements are expected to be issued by the end of December 2013
and the Comprehensive Annual Financial Report (CAFR) is scheduled for presentation in
January 2014.
The following tables provide comparisons between the budget and the actual results for both
revenues and expenditures of the General Fund.
Budget Actual Variance
14,006,29214,298,400 292,108
6,340,0006,493,800153,800
9,003,0009,176,600 173,600
3,533,2003,533,189 (11)
4,662,7004,928,000 265,300
5,395,0005,572,400 177,400
2,498,0002,552,300 54,300
2,050,0002,038,900 (11,100)
1,233,8001,198,500 (35,300)
sub-total48,721,99249,792,0891,070,097
Development Review Fees 2,360,9002,595,200 234,300
Recreation Fees 1,527,9001,747,900 220,000
Other Service Charges 1,867,7001,851,400 (16,300)
Use of Money & Property289,000282,900 (6,100)
Subventions & Grants 1,562,9001,355,200 (207,700)
Fines & Forfeitures 167,200159,700 (7,500)
VLF 019,300 19,300
Other Sources *1,147,2831,270,345 123,062
sub-total8,922,8839,281,945359,062
Total:57,644,87559,074,0341,429,159
Franchise Fees
Business Tax
Gas Tax/TDA
Major Tax Revenues
Service Charges
Sales Tax: General
Sales Tax: Measure Y
Property Tax
Property Tax in Lieu of VLF
Utility Users Tax
Transient Occupancy Tax
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Update on the City’s Fiscal Status and Major City Goals Page 3
Overall, because of prudent spending and over-realized revenue the General Fund’s undesignated
Reserve grew by $5.3 million which exceeded the budget estimate by $5.1 million. Part of this
increase ($1.8 million) is due to a one-time adjustment made directly to the fund balance in order
to recognize accrued sales taxes according to the calculated value by the State. Going forward,
sales taxes will remain in line with the normal budget forecast growth trends and no significant
adjustments to the year-end accrual will need to be made. While this is good news by any
measure, in accordance with City’s Budget and Fiscal Policy, any potential use of the excess
reserve should be focused on one-time expenses.
As part of the Sustain Fiscal Health Major City Goal a number of analyses are underway which
may present opportunities to use these funds including but limited to the analysis of paying down
obligations to the California Public Employees Retirement System and making a change as it
relates to workers compensation and liability insurance. Moreover, there are several other high
priority projects that may benefit from one-time investments, such as limiting debt on the Los
Osos Valley Road interchange project or investing in the new Homeless Services Center.
Moreover, a contingency plan for the possible loss of the Measure Y revenue stream in the event
that it is not extended beyond April 2015 is scheduled for development in the first half of 2014.
Some of this amount in excess of the 20 percent reserve may be needed to fill the gap until the
contingency plan can be fully implemented. Lastly, as indicated in September when the Council
approved resources to address the workload in our development review functions, some of this
funding may be needed to continue staffing and contractual services to process development
permits. Staff will return at mid-year to provide an accounting of the funds previously dedicated
to this effort. Additionally, since this is only the presentation of 2012-13 unaudited financial
results, it is prudent to wait until the mid-year financial update is presented to the City Council in
February before determining how much, if any, of the reserve should be applied to one-time
costs.
The adopted 2013-14 General Fund budget of approximately $59.9 million includes the use of
$2.3 million from the reserve for one-time expenses. These costs include $1.2 million for Skate
Park construction; $500,000 for replacement of Information Technology equipment; $500,000
for reinvestment in Major Facility Replacement projects; $20,000 for permit streamlining
Budget Exp. + Encumb.Variance
3,382,4003,270,600(111,800)
1,104,0001,096,300(7,700)
3,121,3003,029,300(92,000)
5,437,0005,083,800(353,200)
4,002,0003,924,700(77,300)
3,783,5003,544,200(239,300)
11,981,00011,193,800(787,200)
15,275,80014,280,800(995,000)
9,915,5009,744,300(171,200)
58,002,50055,167,800(2,834,700)
Transfer Out 6,887,4006,988,600101,200
Total Dept. + Transfers 64,889,90062,156,400(2,733,500)
(3,732,100)(3,732,100)0
(2,100,000)2,100,000
59,057,80058,424,300(633,500)
Police
Fire
Total Departmental
Reimbursed Expenses
Estimated Savings
Savings in excess of estimate
City Attorney
Human Resources
Finance & IT
Community Development
Parks and Recreation
Public Works
Administration
Expenditures
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Update on the City’s Fiscal Status and Major City Goals Page 4
implementation; $50,000 for Revenue Measure Outreach and Education. Had these one-time
costs not been planned, the General Fund would reflect an excess over expenditures of $141,000.
The following tables provide an overview of the unaudited results for the Enterprise Funds.
The Transit program budgets for the full allocation of TDA revenues that are available each year,
but can only recognize the amount needed to fund that year’s operations. At the end of the year
any excess funds are deferred for use in a later year and this past year’s deferral shifted $462,000
into the current year.
Savings in Parking CIP projects is mainly due to the early phase of design on the Palm-Nipomo
parking structure. The design is budgeted but had not begun in earnest before the end of 2012-13.
The revenue variance is due largely to the program having paid $74,000 more in surcharges to
the county for processing parking tickets, based on higher than expected overall fine generation.
Water Fund Budget Exp. + Variance
Revenues 17,418,700 18,358,400 939,700
Expenditures
Operating Programs 15,311,200 13,784,700 (1,526,500)
CIP Projects 1,959,000 1,322,900 (636,100)
Debt Service 2,187,600 2,153,600 (34,000)
Other Sources (Uses) 0 - 0
Totals: 19,457,800 17,261,200 (2,196,600)
Sewer Fund Budget Exp. + Encumb. Variance
Revenues 15,225,500 16,444,600 1,219,100
Expenditures
Operating Programs 8,535,100 8,126,500 (408,600)
CIP Projects 6,797,400 4,382,700 (2,414,700)
Debt Service 2,995,000 2,939,800 (55,200)
Other Sources (Uses) (67,600) 14,390 81,990
Totals: 18,259,900 15,463,390 (2,796,510)
Transit Fund Budget Exp. + Encumb. Variance
Revenues 4,545,600 4,066,700 (478,900)
Expenditures
Operating Programs 3,393,600 3,176,400 (217,200)
CIP Projects 1,001,500 933,500 (68,000)
Debt Service 0 - 0
Other Sources (Uses) 0 - 0
Totals: 4,395,100 4,109,900 (285,200)
Parking Fund Budget Exp. + Encumb. Variance
Revenues 4,863,100 4,756,300 (106,800)
Expenditures
Operating Programs 2,609,400 2,473,100 (136,300)
CIP Projects 1,860,900 185,400 (1,675,500)
Debt Service 1,525,600 1,518,700 (6,900)
Other Sources (Uses) 100,000 100,700 700
Totals: 6,095,900 4,277,900 (1,818,000)
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Update on the City’s Fiscal Status and Major City Goals Page 5
2013-14 General Fund Revenue Outlook
The current economic cycle indicates a continuing slow and steady recovery. This is consistent
with the revenue forecast that was built into the City’s 2013-15 Financial Plan. The Central
Coast Economic Forecast (presented on November 22, 2013) indicates that the overall economic
indicators for the region are positive and that the recovery is broad-based. Job growth is strong,
tourism is playing an important role in the economic recovery and housing starts are growing. In
sum, Jordan G. Levine Economist & Director of Economic Research for Beacon Economics
indicated the following with regard to the entire county region:
• San Luis Obispo is in the midst of a recovery
o Labor markets growing, housing starts increasing and prices rising, and
spending strong
• One of the fastest growing areas in the state
o 1 of 4 economies to exceed pre-recession peak
• Recovery: broad based across sectors & cities
o Ag, tourism, energy, spending and construction all in the growth mix
• Energy projects conclude next year
o Tourism and domestically-focused spending should offset
• The County has come far since the end of the Great Recession
o SLO is poised for continued growth in 2014 and beyond
While the general outlook is positive there are a few aspects that are cause for concern. Mr.
Levine pointed out that continued concerns about the availability of water may impact the future
growth of certain industries as well as have an impact on housing and tourism. In addition, he
reiterated and emphasized the pending changes to the funding formulas and increases to the
employer rates b y the California Public Employees Retirement System (PERS). In addition to
these concerns, the City cannot look past November 2014 in determining how the revenue stream
may be altered if the Measure Y revenue stream is not extended. Finally, the City must continue
its efforts to evaluate options for obtaining workers’ compensation and liability insurance.
As the federal government faces continued uncertainty due to its inability to pass a budget, limit
the growth of the federal spending limit and struggles with the issues related to the unsuccessful
launch of the Affordable Care Act, local government must continue to wait and see if there will
be financial impacts resulting from these issues. On the other hand, the State government seems
to be feeling the positive effects of the turnaround in the economy and is practicing prudence in
terms of avoiding major spending sprees with over realized revenues.
The City’s top five General Fund revenues—sales tax, property tax, TOT, utility users tax, and
property tax in lieu of vehicle license fee (VLF) – account for about 74% of total General Fund
revenue sources. By focusing on them, one can obtain an excellent understanding of the City’s
revenue position. Based on year-end results and preliminary information that has surfaced since
then, the following is an initial, high-level assessment of the current outlook for these revenues
in 2013-14.
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Update on the City’s Fiscal Status and Major City Goals Page 6
Sales Tax. General sales tax receipts in 2012-13 were $292,000 (2.8%) higher than estimated
due to recoveries in nearly every major business category: new motor vehicles, lumber and
building materials, home furnishings, and department stores. Similar recoveries were
experienced statewide. Revenues from the local ½-cent sales tax (Measure Y) were also higher
than expected by $154,000 (2.4%).
Actual results for 2012-13 indicate that general sales tax receipts have recovered to 2006-07
levels. The 2013-15 Financial Plan assumes that the revenue will grow by 3.8% in 2013-14 and
4% in 2014-15. Recent information received from HdL, the City’s sales tax monitor, indicates
that our growth assumptions are on target, however it is prudent to wait until results are available
for the current quarter of retail sales in order to determine if the holiday season generated the
expected level of sales tax that was assumed in their forecast.
Property Tax. Property tax revenues for 2012-13 were $173,600 or 1% above the budget
estimate and reflect the first growth period after 3 years of decline. The 2013-15 Financial Plan
assumes that property taxes would grow by 4.4% in 2013-14 due in part to County’s lowering of
the property tax administration fee by $170,000 annually. This reduction was legally mandated
by a court ruling that applied to how counties could charge for the service of collecting the City’s
portion of property taxes. In 2014-15, property taxes are estimated to grow by an additional
1.5%.
Transient Occupancy Tax (TOT). Results for 2012-13 were $177,000 better than the budget
estimate and a total of 6.7% over the prior year. Based on the first three months of 2013-14, the
City continues to see year-over-year increases in this revenue source. The 2013-14 budget
assumes that TOT revenues will increase by 6.6% over 2012-13 and it appears that the strong
start to the fiscal year will position the City to meet or exceed that target.
Utility Users Tax (UUT). Results for 2012-13 exceeded the budget estimate by $265,000 or
6%. This revenue is based on utilities including water, telephone, cable television, natural gas
and electricity. The increase in revenue may be due in part to the adoption of Measure D which
updated the UUT Ordinance and modified the rate applied against telecommunications charges
while increasing the breadth of services to which the tax applies. Staff is still researching these
results as it appears that an increased level of revenue is being realized due to the change in the
ordinance but not enough time has passed to determine the amount of the increase on an annual
basis. The UUT is forecast to grow by 2% in 2013-14 and 2.5% in 2014-15.
Property Tax in Lieu of VLF. This reflects revenues from the “swap” of VLF “backfill”
revenues from the State in return for an offsetting portion of the property tax revenues. Actual
results for 2012-13 were on target with estimates. This revenue is projected to increase 1.5% in
2013-14, based on current assumptions and information from the county.
2013-14 General Fund Expenditure Outlook
General Fund expenditures are generally on target for the first quarter of 2013-14. City staff has
a track record of containing costs within the overall approved budget. Other measures have been
implemented that will contain costs including the creation of the 2nd Tier PERS program which
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Update on the City’s Fiscal Status and Major City Goals Page 7
will continue to provide savings as new employees join the city under the new plan. These are all
signs of prudent fiscal management.
Unlike the issues that faced the City at the time the last 2-year Financial Plan was adopted, this
Financial Plan’s expense patterns do not contain the same scope and scale of uncertainties with
respect to establishing the baseline for employee compensation and benefits. Policy leadership
by the City Council and implementation efforts by City employees have led to this outcome.
Concessions achieved with all bargaining groups and unrepresented management personnel have
resulted in annual, ongoing cost savings of $2.6 million in the General Fund and $3.1 million
across all funds. These cost savings, coupled with past budget reductions and the slow, steady
growth in revenues that the city is experiencing are helping the City maintain balanced budgets
while funding critical services for its constituents and increasing its level of investment to vital
infrastructure components.
With respect to infrastructure, full funding of the Santa Rosa Skate Park is provided in the 2013-
15 Financial Plan, with construction slated to begin in 2014. Other projects are set to begin that
improve bicycle facilities, reduce traffic congestion, maintain city streets and sidewalks and
construct the Los Osos Valley Road/101 Overpass widening project which is set to begin during
2014-15.
2013-14 Outlook for Enterprise Funds
Water Enterprise Funds
Revenues
Overall revenues are projected to increase by 4% ($726,100) in 2013-14 from the prior fiscal year.
This reflects an increase in water service rates of 7.5% and a conservative estimate of development
impact fee revenue. Revenue from water sales, including sales to Cal Poly, reflects prior year sales
with the proposed rate increases applied. Development impact fee revenues for 2013-14 are projected
to be $670,000 which is almost equal to the amount realized in 2012-13. To date, $450,000 has been
received already this year. Overall, the assumptions about development impact fee revenues for
2013-14 reflect a strongly conservative approach based on an economy that is still recovering and
inherent volatility in the building industry. Current year-to-date results suggest that water sales are
on target to meet 2013-14 projections.
Operating Program Expenses
The Water Fund’s operating program budget was developed in order to provide the community with
high quality, safe and reliable water services. Of the total operating program cost increase about half
is attributable to a temporary need for additional project management to assist in delivering important
capital projects to the community in a timely manner. This is a short-term need driven by the
anticipated volume of capital project workload and available resources in Public Works at this time.
The additional resources will be used to accomplish both Water and Sewer projects.
Capital Improvement Plan
Long-term infrastructure planning is essential to providing high quality, safe and reliable water
services for the community. The City’s 2013-18 five-year Capital Improvement Plan (CIP) identifies
approximately $2.5 million per year in projects that will maintain and replace the City’s water system
infrastructure. These projects include pipeline replacements, major equipment upgrades, ongoing
treatment processes, and technology.
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Update on the City’s Fiscal Status and Major City Goals Page 8
Sewer Enterprise Fund
Revenues
Overall revenues are projected to increase by 3.5% ($535,500) in 2013-14 from the prior fiscal year.
This reflects an increase in sewer rates of 4% and a conservative outlook on development impact
fees. Revenue from sewer services, including sales to Cal Poly, reflect historic trends as well as the
proposed rate increases. Development impact fee revenues are estimated at approximately $155,000
annually during 2013-15 which is less than ½ the amount that was received in 2012-13. The
assumptions about development impact fees reflect a strongly conservative approach based on an
economy that is still recovering and inherent volatility in the building industry.
Operating Program Expenses
The Sewer Fund’s operating program budgets were developed in order to provide the community
with protective, reliable wastewater services.. Of the total operating program cost increases, $58,800
is attributable to a temporary need for additional project management to assist in delivering important
capital projects to the community in a timely manner. This is a short-term need driven by the
anticipated volume of capital project workload and available resources in Public Works at this time.
The additional resources will be used to accomplish both water and sewer projects.
Capital Improvement Plan
The 2013-18 five-year Capital Improvement Plan identifies nearly $80 million in infrastructure
improvement and replacement projects over the next five years. The Sewer Fund will be investing in
four significant lift station replacements, pipeline replacements averaging $1 million per year, and
major maintenance at the Water Reclamation Facility. In addition, the Fund is being prepared to
support a $63.2 million upgrade at the Water Reclamation Facility in the five-year period.
Transit Enterprise Fund
The Transit Fund remains sensitive to fuel price fluctuations as well to some uncertainty in the
on-going level of annual subsidy funding obtained from both the state and federal governments.
While state funding has been forecast to increase by 22% in the current year, it is difficult to
predict future levels, which causes staff to work very closely with their contacts at these agencies
to stay on top of current developments.
Parking Enterprise Fund
The Parking Fund is benefitting from the forecast growth predicted for local retail sales as this is
creating more usage of the parking lots and garages. The recent addition of Sunday parking
services, the new credit-card meters and the weekend residential parking enforcement are
strengthening the fund’s revenue base.
MAJOR CITY GOAL UPDATE
The attached report (Attachment 1) details the status of Major City Goals and Other Important
Objectives set by the Council as part of the 2013-15 Financial Plan. The status is provided as of
November 1, 2013. In general, we are on track in accomplishing the objectives based on the
work programs adopted by the Council. As discussed in the report, there have been changes to
the work programs due to a variety of factors; most of which are related to the timing of
accomplishing tasks rather than the elimination of work program elements. Revised timelines
are reflected by italics in the attached report.
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Update on the City’s Fiscal Status and Major City Goals Page 9
Some exciting accomplishments since July include:
• The City Council approved an ordinance to permanently institute a safe parking program.
• The Community Action Team in the Police Department was fully implemented and is
working diligently to address illegal and adverse behaviors such as public intoxication
and aggressive panhandling that impact the community.
• The City Council appointed 10 residents to the Revenue Measure Advisory Committee
(RMAC) and the committee’s work is well underway. A variety of information in
support of RMAC’s mission including Frequently Asked Questions and “story boards”
on accomplishments from Measure Y have been posted to the city’s website.
• The Class 1 bikeway which connects the Bob Jones Trail to Los Osos Valley Road is
under construction and anticipated to be completed in the next quarter.
• The Park Ranger Service has been enhanced with the addition of a new employee who
will focus on maintenance and enhancement of the City’s open space.
• Street reconstruction of California Boulevard including the installation of the “Green
Bike Lane” (neon green bike lane that enhances bike safety at the Highway 101 exit) was
completed during the first quarter of the fiscal year.
• As part of the Land Use and Circulation Element (LUCE) update the City Council
provided direction on the Physical Alternatives for future development sites.
Details of each goal’s work program and status in achieving the tasks is provided in Attachment
1. Staff will present the next “formal report” to the Council in February 2014 as part of the
2013-14 Mid-Year Budget Review. In the interim, staff will keep the Council up-to-date on the
status of major projects through agenda reports, Council Notes and other briefing opportunities.
ATTACHMENTS
1. Major City Goal Update
T:\Council Agenda Reports\Finance & IT CAR\Finance\2011\CAR First Quarter Update 12-13-11.docx
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STATUS OF GOALS AND OBJECTIVES
As of November 1, 2013
CITY OF SAN LUIS OBISPO
Attachment 1
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STATUS OF GOALS AND OBJECTIVES
As of November 1, 2013
TABLE OF CONTENTS
INTRODUCTION
Overview 1
Report Card: Major City Goals and
Other Important Council Objectives 1
Action Plan Changes 2
Next Report 2
MAJOR CITY GOALS
Homelessness 3
Neighborhood Wellness 7
Sustain Essential Services & Fiscal Health 10
Bike & Pedestrian Paths 15
Economic Development 17
Assess & Renew the Downtown 19
Skate Park Construction 21
OTHER IMPORTANT COUNCIL
OBJECTIVES
Open Space Expansion 23
Infrastructure Maintenance 26
Improve Transportation 30
CARRYOVER GOALS AND OBJECTIVES
Update Land Use and Circulations Elements 32
STATUS OF MAJOR CIP PROJECTS
Status of Major Capital Improvement 34
Plan (CIP) Projects
Attachment 1
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INTRODUCTION
E-1
OVERVIEW
This report details the status of Major City Goals
and Other Important Council Objectives set by the
Council as part of the 2013-15 Financial Plan as of
November 1, 2013. In general, we are off to a good
start in accomplishing these
objectives based on the work
programs adopted by the Council.
Report Card. The following is a
quick “report card” on the status of
Major City Goals and Other
Important Council Objectives based
on the “action plans” approved by
the Council as part of the 2013-15
Financial Plan.
As a benchmark, at November 1,
2013, we are 16 percent through the
two-year Financial Plan period. Most of the goals
and objectives are just getting started, but progress is
being made nevertheless.
Organization. The “report card” is followed by a
short summary of notable changes from the original
action plan. After this is a more detailed report on
each Major City Goal and Other
Important Council Objective,
which shows the objective, action
plan as adopted by the Council.
Revisions are displayed as follows:
Additions are shown in italics;
Date changes are shown in
italics and highlighted in a separate
column; and
Deletions are shown in
strikeout.
Report Card: 2013-15 Major City Goals & Other Important Objectives – Percent Complete as of 11/1/13
Important Note
Many of these objectives are
multi-year goals that have
activities associated with
them that go beyond the
2013-15 Financial Plan
period. This status report is
focused on approved
“Action Plan” tasks as of
November 1, 2013.
0%10%20%30%40%50%60%70%80%90%100%
Address Homelessness
Neighborhood Wellness
Preservation of Essential Services & Fiscal Health
Bike/Pedestrian Paths
Economic Development Strategic Plan
Assess/Renew Downtown
Skate Park Construction
Major City Goals
0%10%20%30%40%50%60%70%80%90%100%
Improve Transportation
Infrastructure Maintenance
Open Space Expansion
Other Important Council Objectives
Attachment 1
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INTRODUCTION
E-2
ACTION PLAN CHANGES
As noted above, in general we are off to a good start
in accomplishing the 2013-15 goals and objectives
based on the work programs adopted by the Council.
Notable changes from the original action plans
include the following:
NEXT REPORT
Staff will present the next “formal report” to the
Council in February 2014. In the interim, we will
keep the Council up-to-date on the status of major
projects through agenda reports, Council Notes and
other briefing opportunities.
Attachment 1
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MAJOR CITY GOALS – ADDRESS HOMELESSNESS
E-3
IMPLEMENT COMPREHENSIVE STRATEGIES TO ADDRESS HOMELESSNESS
Objective: Implement comprehensive strategies to address homelessness in our City in partnership with other entities.
Encourage existing, improved, and expanded services (including advocating to the County and other organizations for
delivery of case management, drug, alcohol, and detoxification services, and mental health services), support the
establishment of a new homeless services center, and pursue good-neighbor, safety, and quality of life programs
(including restrooms), using technology as appropriate.
Action Plan:
Task Current Revised
Encourage existing, improved, and expanded services
1. Increase coordination and representation of City interests in discussions with the County,
social services providers and non-profit organizations for delivery of existing, improved and
expanded services, including case management, drug, alcohol, detoxification, and mental
health services.
Ongoing
2. Continue the City’s Homeless Issues Working Group, and HSOC and FPDC participation to
support and implement the 10-Year Plan and identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.
Ongoing
3. Continue, and increase where feasible, financial support for Maxine Lewis, Prado, Safe Parking
Program, GIA Program, Housing Programs and Warming Station.
Ongoing
4. Utilize the Human Relations Commission to outreach to the community and maintain focus and
strategic support and direction on homeless issues.
Ongoing
5. Continue to implement Housing Element programs Ongoing
6. Work with developers to include affordable housing units in projects and to complete housing
projects in process.
Ongoing
7. Look for new opportunities to use Affordable Housing Fund and grant monies to leverage
other funds for affordable housing projects.
Ongoing
Support the establishment of a new homeless services center
1. Execute a MOU between the City, County and CAPSLO to formalize the common objectives
and methods for achieving development of a Homeless Services Center.
12/13 04/14
2. Continue, and increase where feasible, financial support for the Homeless Services Center. Ongoing
Pursue good-neighbor, safety and quality of life programs
1. Implement a CAT team concept to address adverse transient/homeless behaviors. Ongoing Completed
2. Work with CAPSLO to enhance and support a comprehensive Good Neighbor Policy. Ongoing
3. Develop all elements needed for donation station implementation, including monitoring, 12/13 06/14
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MAJOR CITY GOALS – ADDRESS HOMELESSNESS
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Task Current Revised
maintenance, fund collection, deposition of funds, identification of recipients, and locations.
4. Council direction on option for restroom provision. 1/14
5. Collaborate with interested private entities to implement a donation station program. 2/14 Ongoing
6. Start restroom implementation with completion date dependent upon solution (see “Assess
and Renew the Downtown” goal for specific recommendations.)
7/14
Status Summary: 12.5% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Affordable Housing
The City facilitates the provision of affordable housing and provides leadership in implementing the 10-Year Plan by
partnering with a variety of social service providers and the Countywide Homeless Services Oversight Council (HSOC).
Providing affordable housing is one of the key objectives in transitioning homeless persons. This effort includes
administration of the City’s CDBG program, Housing Element implementation, awards of the City’s Affordable Housing
Fund to support transitional and low income housing, administration of the City’s Inclusionary Housing Program, and
participation in the planning and execution of a variety of special projects including the warming station at the Prado Day
Center, the safe parking program, and the proposed Homeless Services Center project.
On August 20th, Council adopted changes to Chapter 17.90 (Affordable Housing Incentives) of the Zoning Regulations to
be consistent with State density bonus law. The City’s Affordable Housing Incentives were last updated in 1995 and State
law related to affordable housing production has substantially changed. Some highlights of the adopted changes include
additional definitions, greater percentage of density bonus allowed for providing affordable housing and additional
options for alternative incentives and concessions. This amendment was particularly timely since the City is updating the
Housing Element and jurisdictions must have updated density bonus ordinances.
Staff is collaborating with HASLO regarding their option to develop affordable housing in the Margarita Area Specific
Plan (MASP). HASLO is in the preliminary stages of developing plans to construct affordable housing on a two acre
property that is required to be dedicated by the property owner/developer of the subdivision.
Work commenced on updating the City’s General Plan Housing Element. State law establishes a schedule for cities and
counties to periodically update their housing elements. Under this schedule, the City is required to adopt an updated
housing element on or before June 30, 2014. The update process is a tool to modify housing policies and programs to
reflect the changing needs, resources, and conditions in the community, and to respond to changes in housing law.
On November 19th, Council will consider an Affordable Housing Fund award for the Housing Trust Fund (HTF) in the
amount of $30,000. The HTF provides three key services that benefit affordable housing in the City of San Luis Obispo:
1) financing, 2) technical assistance and 3) advocacy. The HTF provides funding for affordable housing projects,
including property acquisition, construction and refinancing. HTF staff also serves as a resource to City staff working with
developers on affordable housing projects.
On September 27th, Habitat for Humanity of San Luis Obispo County (HFH), City officials and a number of community
partners attended a home dedication ceremony for the families of HFH’s affordable housing development located at 3212
Rockview Place. The site is approximately 12,000 square feet in area and the project included the development of three
single-family homes. These homes are deed restricted for purchase by very-low income families under the City’s long-
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MAJOR CITY GOALS – ADDRESS HOMELESSNESS
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term affordability program. Each home occupies its own lot and includes approximately 1,000 square feet of living area
with three-bedrooms and 1½ baths. The Habitat families that purchased the homes have performed over 500 hours of
sweat equity on their home. They purchased the homes with a no-interest loan and their monthly mortgage payments will
be used to support Habitat’s work throughout the County. The City contributed a Community Development Block Grant
of $241,217 and an Affordable Housing Fund grant of $38,783 for property acquisition and site clearance and
remediation.
On October 15th, Transistions Mental Health Association of San Luis Obispo County (TMHA), City officials and a
number of community partners attended an open house and guided tour of “Hope House”, TMHA’s recently constructed
permanent supportive housing development located at 1306 Nipomo Street. The project included the renovation of an
existing 2,333 square foot home into two studio units and a wellness center and construction of a new two-story building
with six studio units and vehicle parking. All eight units are fully furnished and residential support services for the tenants
are provided on-site in the wellness center. These units are deed-restricted for rent by very-low income individuals under
the City’s long-term affordability program. The City contributed development review and citywide impact fee waivers to
the project.
The Moylan Terrace housing development located at 851 Humbert Street has completed and sold Phase 1 of the
development. The project includes 80 residential townhomes and a building with a community room and one rental
apartment. Of the 81 units, 49 are deed-restricted under the City’s long-term affordability program with the remainder to
be sold as “workforce housing” (between 120% and 160% of the County median income). The project includes a mix of
affordability for the 49 deed-restricted units, including 2 very-low, 14 low and 33 at the moderate income levels. Phase 2
of 7 is under construction with completion expected in spring of 2014. The City contributed an Affordable Housing Fund
grant of $709,900 for property acquisition and development review and citywide impact fee waivers for the affordable
units.
Homeless Services
On October 1st, Council approved amendments to Title 17 (Zoning Regulations) of the Municipal Code to permit and
provide standards for the operation of safe parking facilities on private properties within the City. The Ordinance provides
a limited exception to allow safe parking facilities on property located outside of the public right-of-way in certain zoning
districts subject to permit requirements; performance standards and use permit considerations to ensure that safe parking
facilities will be compatible with surrounding uses and effective at facilitating participants’ transition to permanent
housing. This Ordinance is effective October 31st.
On October 1st, Council adopted funding priorities for the 2014 CDBG Program Year. The City has received seven
applications requesting a total of $754,695. The City expects to receive approximately $460,000 for the upcoming year.
The City has a Homeless Issues Working Group to support and implement the 10-Year Plan and to identify, evaluate, and
implement strategies to reduce the impacts of homelessness on the City. The Working Group meets bi-monthly and is
made up of executive team members that have programmatic responsibility in areas that serve the homeless population, or
serve community members that are impacted by homelessness.
Staff provides leadership in implementing the 10-Year Plan by working with CAPSLO and other housing and service
providers including considering ways to encourage transitional housing and “housing first” options. Staff implements the
General Plan Housing Element, which contains policies and programs that support housing and service agencies whose
mission it is to develop programs for the City’s homeless population. Staff promotes collaborative efforts and
opportunities to address the needs of the homeless population and acts as the City liaison to HSOC and Friends of Prado
Day Center.
Staff was actively involved with the 2013 Homeless Enumeration Report. Every two years, all jurisdictions receiving
federal funding to provide housing and services for the homeless are required by HUD to conduct a point-in-time count of
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MAJOR CITY GOALS – ADDRESS HOMELESSNESS
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sheltered and unsheltered homeless persons at a single time during the last ten days of January. The data collected through
these counts help the federal government and local jurisdictions better understand the nature and extent of homelessness
and plan for needed programs and services. Additionally, local jurisdictions use the findings of their point-in-time count to
apply for federal funding for homeless programs. In 2013, the San Luis Obispo County Continuum of Care is expected to
receive approximately $1 million in federal funds for homeless services.
Staff is developing a Homeless Solutions webpage that will consolidate information regarding homeless programs,
resources and links to helpful agencies.
Pursue Good Neighbor, Safety and Quality of Life Programs
#1 CAT Team Concept - staff has assigned two officers who are currently working in the CAT Team capacity addressing
adverse transient/homeless behaviors.
3. & 5: Donation Stations – The Downtown Association Board of Directors voted to participate and support this program
as a lead partner. The United Way has partnered with the program and is acting as the non-profit 501c(3) which will
receive and distribute donations collected by the City. Specific beneficiaries have yet to be determined. The project is in
its early phases which currently includes a marketing campaign. It is expected this will take place in the next sixty days.
Other phases will include identifying donation meter locations for installment and collection of donations. It is
anticipated that donation stations will be installed in the spring after careful coordination with local merchants and the
Downtown Association. Staff is currently preparing a memorandum of agreement to formalize the operations once the
program
Restrooms
Increasing restroom availability after the closure time of restrooms available in the daytime is underway. Details are
covered under the Downtown Goal.
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MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES
E-7
CONTINUE AND ENHANCE NEIGHBORHOOD WELLNESS INITIATIVES
Objective: Continue and Enhance Neighborhood Wellness Initiatives. Continue to support proactive code enforcement,
pursue a residential rental inspection program, improve street cleanliness, increase public safety enforcement, and support
neighborhood led initiatives.
Action Plan:
Task Current Revised
Proactive Code Enforcement
1. Develop a code enforcement hearing officer program and associated training protocols Ongoing
2. Produce and distribute quarterly Neighborhood Wellness newsletteri Ongoing
3. Noise abatement and residential parking district enforcement by SNAP Ongoing
4. Improved education/outreach plan for neighborhood noise abatement. 8/13 Ongoing
5. Implement a lien process for uncollected fines and incurred costs. 8/13 3/14
6. Establish an Abatement Fund 9/13 3/14
7. Conduct comprehensive municipal code review to identify possible amendments to code to
facilitate code enforcement efforts. 11/13
Rental Inspection
1. Identify best practices and complete a draft outline of the program 8/13 11/13
2. Conduct outreach with stakeholders to obtain input on the draft program outline 9/13 to 3/14
3. Review stakeholder input with Council and receive policy direction 4/14
4. Revise program outline and draft an ordinance 5/14 7/14
5. Conduct outreach with stakeholders on the revised program outline and ordinance 6/14 8/14
6. Agendize the Ordinance for public hearing and Council adoption 7/14 12/14
7. Begin rental inspection program if adopted by the City Council 3/15 7/15
Street Cleanliness
1. Identify problematic areas 10/13
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MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES
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Task Current Revised
2. Develop informational materials and delivery methodology to educate residents on their
sweeping day and the benefits of keeping cars off the streets for the sweeping 12/13
3. Evaluate informational campaign effectiveness 3/14 6/14
4. If needed, develop and implement enforcement activities 10/14
Public Safety Enforcement
1. Implementation and coordination of CAT team to address neighborhood concerns 7/13 Ongoing
2. Continue the development of park and neighborhood officers within identified geographical
boundaries for residential connectivity and collaboration Ongoing
Neighborhood Initiatives
1. Obtain Council direction for guidelines and process for “Neighborhood Match” grants for
neighborhood improvement projects 1/14 3/14
2. Develop database of neighborhood boundary areas and contact information 1/15
3. Complete neighborhood tree plantings – as requested Ongoing
Status Summary: 10% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Proactive Code Enforcement
1. Quarterly Newsletter – staff has produced two newsletters, spring 2013 and summer 2013 and will be releasing fall
2013 in November. Content is comprised of updates on existing neighborhood related projects as well as information on
upcoming meetings, events and programs. Distribution is electronic and the newsletter is emailed to residents who have
indicated they’d like to receive the document. The Newsletter is also shared with Cal Poly and Cuesta administration. The
newsletter is also posted on the Police Department page of the City website.
2. Noise abatement and parking enforcement by SNAP – The SNAP schedule and responsibilities have been fine tuned.
SNAP is now reporting for shifts earlier as to better enforce residential parking districts. SNAP is also responding to noise
complaints during all six weekly shifts. Two SNAP teams are scheduled for traditionally busy times (start of school,
Halloween, etc.) to allow for quicker response time to noise complaints. Additionally, they are assisting with graffiti
abatement and abandoned bicycle retrieval.
3. Outreach – with the amendments to Safety Enhancement, an extensive outreach strategy was put into place in August
and September. All property owners with business tax licenses were mailed a postcard explaining the safety enhancement
changes. Door hangers were distributed to over 3,000 residences in the neighborhoods which have a high percentage of
student age residents. The door hanger shared safety enhancement and “Avoid Party Regret” information as well as “how
to be a good neighbor” reminders. Two ads were run in the Mustang Daily, a full page in the WOW edition and a quarter
page in the Back to School edition and continued the safety enhancement and “Avoid Party Regret” messaging. The
Office of Neighborhood Services Facebook page was updated daily with rotating safety enhancement, “Avoid Party
Regret” and be a good neighbor message. Staff attended a variety of in-person events to share noise abatement
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MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES
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information: Cuesta new student orientation in August, WOW leader training prior to the start of WOW, two-day WOW
resource fair for new students, Inter-fraternal Council, PanHellenic Council, four fraternity chapter meetings and one
sorority chapter meeting. Staff is also scheduled to present to the Neighbors North of Foothill annual meeting in mid-
November. Outreach for Halloween will include print ads in the Mustang Daily, New Times and posters distributed by the
Downtown Association for food and beverage outlets. Cal Poly and Cuesta administration will be assisting with electronic
distribution of the Halloween enforcement information.
4. The two interns from Germany and the fellow in the City Attorney’s Office are collaborating on multiple fronts to
improve the overall citation appeals process, developing a lien process that is outlined in State law and the City’s
municipal code. Additionally, staff is doing research on the establishment of an abatement fund to assist with abatement
efforts when exigent health and safety conditions exist that require immediate attention and action.
Rental Inspection
A Draft Project Plan for the development of a Rental Housing Inspection Program was presented to the Development
Oversight Committee in October 2013 and it is being further refined. Two interns from the University of Ludwigsburg,
Germany, arrived on October 21st and will be assisting with the program research through January 16, 2014. They will be
analyzing rental housing programs in other cities and identifying the range of best practices and options available for
possible inclusion in a proposed program for San Luis Obispo.
Public Safety Enforcement
1. CAT Team – staff has assigned two officers who are currently working in the CAT Team capacity addressing
neighborhood concerns.
Street Cleanliness
Work is nearly complete to identify problem areas. During the months of October and November, the City’s Sweeper
Operator is documenting portions of the City where curb sweeping is not possible due to parked cars. This will focus
future educations efforts to problem areas. Preliminary discussions occurred in September with Utilities staff experienced
in public education, to identify potential education mechanisms. Additional time is anticipated to implement and evaluate
educational efforts, as experience indicates using a multi-faceted approach has the greatest likelihood of success, but will
take more time to implement.
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MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH
E-10
SUSTAIN ESSENTIAL SERVICES, INFRASTRUCTURE, AND FISCAL HEALTH
Objective: Sustain essential services, infrastructure, and fiscal health: preserve public health and safety and provide
essential services in line with residents’ priorities and sustain the City’s short and long term fiscal health by planning
future revenues (including renewal of Measure Y or an alternative measure), while implementing contingency planning,
efficiency measures, and cost containment strategies including implementation of the Compensation Philosophy and
monitoring further pension and benefit issues.
Action Plan:
Task Current Revised
Plan future revenues including renewal of Measure Y or an alternative measure, as well as contingency planning
1. Create a nine-member Advisory Committee appointed by the City Council to guide
outreach efforts, advise staff in the creation of the outreach effort, and implementation
of the Major City Goal work plan, as well as provide advice and counsel to the City
Council regarding future revenues.
7 – 8/13 Complete
2. Analyze Measure Y revenues and expenditures and identify community-wide benefits
generated through the use of this local revenue source.
8 – 9/13 Complete
3. Conduct a survey regarding residents’ priorities and report the results back to the
community.
9/13 11/13
4. Conduct study session to review options for alternative revenue measures, advisory
measures, or other revenue alternatives in line with residents priorities.
12/13 5/14 with
Committee
recommendations
5. Prepare background information and alternatives for contingency planning and conduct
a series of study sessions with the City Council regarding likely budget reductions and
other contingency planning that would need to occur if Measure Y, or a different
revenue measure, is not reauthorized.
7/13 – 2/14
7/13-6/14
6. Provide information to the community regarding the benefits of locally controlled
revenue sources, such as Measure Y, through a variety of methods and informational
outlets, including:
a. Organize a speakers bureau of community members to engage the
community about the benefits of Measure Y
b. Make staff available to present information regarding Measure Y benefits
at a wide variety of community meetings and to service organizations
c. Present useful information about the benefits of Measure Y on the City’s
website
d. Use Facebook and Twitter to highlight key information and bring
interested citizens to the website
e. Direct mailing to registered voters.
1 – 11/14
7. Conduct annual Measure Y Community Forum 3/14
8. Conduct study session to review options for alternative revenue measures, advisory
measures, or other revenue alternatives in line with residents priorities.
5/14
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MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH
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Task Current Revised
9. City Council consideration of a ballot measure to reauthorize the City to collect a ½-
cent sales tax, or authorize a different revenue measure if in line with residents’
priorities.
5/14 7/14
10. If reauthorization of Measure Y or a new revenue measure is not placed on the ballot,
begin to implement contingency plans for necessary, future budget reductions.
7/14
11. If a proposed revenue measure fails at the ballot box, begin to implement contingency
plans for necessary, future budget reductions.
11/14
Continue to closely review and monitor the City’s fiscal condition
1. Update General Fund Five-Year Forecast at least twice annually, at mid-year and with
the recommended budget while ensuring that effective revenue and expenditure trend
monitoring tools and processes are utilized.
Ongoing
2. Prepare focused reports on areas of interest to City Council and management such as
projected pension cost trends, insurance program costs, and investment performance
and strategies.
Ongoing
3. Beginning in 2014-15, self-assess one percent of salaries to be used to reduce CalPERS
obligation.
Ongoing
4. Present a cost benefit analysis to Council regarding the City’s ability to make payments
on the CalPERS Tier 1 Safety Side Fund, pensions, or to offset ongoing employer rate
increase.
4/14
Continue emphasis on effectiveness and efficiency of the City organization
1. Continue to perform organizational reviews; prioritizing the implementation of
recommendations focused on improving effectiveness and efficiency.
Ongoing
2. Continue to review and implement ideas for savings or increased revenues as
recommended by community members and staff.
Ongoing
3. Continue use of benchmarking and best practice reviews in evaluating
recommendations.
Ongoing
4. Implement benchmark analysis to compare key financial and outcome measures with
comparable jurisdictions.
9/13 2/14
5. Identify opportunities for managed competition in City functions as identified from the
results of benchmark analysis and organizational or best practices reviews.
Ongoing
6. Examine feasibility of establishing and monitoring performance measures instead of
workload measures.
12/14
7. Evaluation of cost effectiveness of leasing instead of purchasing equipment. Ongoing
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MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH
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Identify and address long-term liabilities that are important to the City’s fiscal sustainability
1. Refine the five-year capital improvement program that will responsibly protect the
City’s infrastructure assets, including building facilities, and develop a plan for funding
as needed.
Ongoing
2. Establish replacement and funding plans for equipment. 10/13 – 2/14 6/14
3. Establish replacement and funding plans for information technology assets. 10/13 – 2/14 6/14
4. Periodically review liability and workers compensation claims trends and update a plan
of funding if needed.
Ongoing
5. Monitor liability and workers compensation claims to ensure best practices in
prevention are implemented and costs reduced.
Ongoing
6. Provide preliminary notice to the CJPIA of City’s intent to explore other coverage
options.
7/13 Complete
7. Thoroughly review liability and workers compensation coverage, claims history, and
other services provided by CJPIA and explore alternatives that ensure appropriate risk
management and cost effectiveness.
7/13 – 4/14
8. Engage an outside consultant to initiate a cost basis analysis to evaluate and document
the costs and impacts of the City’s Utilities operations on General Fund supported
operations and facilities, including but not limited to City streets and right-of-way, to
ensure appropriate and supportable franchise in-lieu or other appropriate charges to the
water and sewer funds.
7/13 – 9/13 10/13 – 3/14
9. Report options to Council and provide recommendation. 4/14
Continue to monitor personnel costs and develop strategies to effectively manage the cost.
1. Continue to monitor personnel cost. Ongoing
2. Continue to monitor and support appropriate pension reform Ongoing
3. Continue to monitor pension costs and consider strategies to effectively reduce
liabilities associated with the pension program.
Ongoing
4. Analyze the effects of the “pay or play” mandate pursuant to the Affordable Care Act
and recommend a plan of funding if applicable.
11/13 Complete
5. Assist in the development and coordination of the HRACC compensation and benefits
survey to ensure appropriate local private sector data is available for use in future
analysis. Participate in the survey.
7/13 – 12/13 Complete
6. Conduct a market compensation comparison of benchmark classifications in SLOCEA
and management.
1/14 – 6/14 11/13-6/14
7. Develop a labor relations strategy to guide upcoming negotiations. 1/14 – 12/14
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MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH
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8. Conduct labor negotiations consistent with Council’s labor relations strategy with
represented employee groups; initiating negotiations prior to expiration of current
agreements
9/14 –6/15
Status Summary: 20% Complete. The following is a summary of accomplishments and important next steps:
Plan Future Revenues
The City Council has appointed 10 residents to serve on the Local Revenue Measure Advisory Committee (LRMAC). The
LRMAC is supported by a facilitator, Dale Magee of Catalyst Consulting, and has been meeting regularly. The mission
and responsibilities of the LRMAC include:
1. Analyze the City’s stewardship of Measure Y resources
2. Seek community input regarding their preferences and local revenue measure spending priorities
3. Develop recommendations specific to the November 2014 General Election regarding alternatives for
reauthorization of Measure Y, or the creation of a new revenue measure
4. Assist the City in performing community outreach and education.
Prior to November 1, the LRMAC held three meetings. The first meeting covered Measure Y Fundamentals, Services and
Outcomes; the second meeting covered rules and regulations relating to revenue measures and an overview of all of the
different revenue measures considered across the State in 2012; the third meeting focused on community priorities a nd
included a presentation from the City’s public opinion research consultant.
In addition, the LRMAC completed a significant amount of planning for a November 21 Measure Y Open House. The
purpose of the Open House is to give the public an opportunity to speak directly with Committee members. Staff will
report the results of this event to the City Council.
Identify and Address Long Term Liabilities
In April 2011, staff notified the California Joint Powers Insurance Authority (CJPIA) of its intent to withdraw
membership from the liability and workers compensation programs effective July 2014. Staff prepared a project plan to
guide a thorough evaluation of alternatives to the CJPIA. A consultant, Tom Sinclair of Municipal Resource Group, was
retained to assist in this project. Mr. Sinclair has worked with staff to identify the risk management needs of the City
including insurance coverage, training, and risk management consultation given the City utilizes a decentralized risk
management model at this time. Mr. Sinclair has identified several possible risk pools that will be evaluated to determine
feasibility and fit with the City’s requirements. Ultimately a cost analysis will also be conducted.
In October 2013 staff presented to Council an update on the Affordable Care Act (ACA) Employer Shared Responsibility
Implementation and Council adopted a resolution establishing that the City will comply with the ACA, Employer Shared
Responsibility. This provision, which goes into effect January 1, 2015, is more commonly referred to as the “Play or Pay
Mandate” and requires that employers offer health insurance coverage that is “affordable” and of “minimum value” to
“substantially all” of its full-time (on average 130 hour per month) employees and their dependent children. While this
provision doesn’t go into effect until January 2015, the City must establish a measurement period and start preparing for
the detailed administration of this provision. Further, staff presented a proposal for ensuring health coverage was
affordable to temporary full time employees under the ACA.
HR staff participated in the development of the HRACC Compensation and Benefit Survey and also completed the survey
when it was sent out. We are awaiting results that are expected by December 31, 2013. On November 5, 2013 staff
presented a report approved by Council that outlined the plan and approach to conducting the 2014 Benchmark
Compensation Study along with how the results of the Study will help inform Council’s development of labor relations
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MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH
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objectives. A consultant, Geoffrey Rothman has been retained and will start working with staff, an employee committee,
and the Personnel Board on November 18th and 19th, 2013.
Current workload is delaying the completion of the calculations needed to determine the replacement funding needs for
equipment and information technology assets. Peripheral work is being completed at this time.
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MAJOR CITY GOALS – BIKE & PEDESTRIAN PATHS
E-15
EXPAND BICYCLE AND PEDESTRIAN PATHS
Objective: Expand bicycle and pedestrian paths to improve connectivity and safety, including continued progress on Rail
Road Bicycle and Pedestrian Safety Trail and Bob Jones Trail, and pursuit of other options contained in the Bicycle
Transportation Plan.
Action Plan:
Task Current Revised
Railroad Safety Trail
1. Complete design of Class I bikeway – Taft to Pepper (contingent on TIF and future grant
funding availability).
6/14
Bob Jones City-to-Sea Trail
2. Complete construction of Class I bikeway connection to LOVR 2/14
3. Complete route planning of Class I bikeway – Octagon Barn Connection. 4/14
4. Begin design of bicycle facilities as part of the Prado Road Bridge at San Luis Creek project.
(Contingent on TIF and debt financing funding availability). 7/13 Completed
Other Bicycle and Pedestrian Paths
1. Complete design and begin construction of bicycle facilities as part of the LOVR interchange
project (contingent on TIF, grant, and debt financing funding availability).* 10/14
2. Construct Class II bike facilities on Prado Road as part of the Serra Meadows Project
(constructed by developer). 6/14
3. Construct miscellaneous bikeway improvements identified in the Bicycle Transportation Plan. Ongoing
4. Construct sidewalk ramps and repair sidewalks. Ongoing
5. Maintain pedestrian and bicycle paths. Ongoing
Other Efforts that Support Bicycling and Walking
1. As time permits, seek funding for the construction of bikeways and pedestrian facilities within the
City.
Ongoing
2. Complete curb ramps, sidewalks, on-street bicycle facility paving, drain grate upgrades, and
striping improvements in conjunction with City Street paving projects. Ongoing
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MAJOR CITY GOALS – BIKE & PEDESTRIAN PATHS
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Task Current Revised
3. Perform pavement maintenance on bicycle and pedestrian paths. Ongoing
4. Complete 2013- Bicycle Transportation Plan Update 8/13 Complete
5. Conduct biennial vehicle, bicycle, and pedestrian traffic counts, speed surveys and travel time
studies (contingent on TIF funding availability).* Ongoing
6. Continue bicycling educational efforts. Ongoing
7. Continue alternative transportation marketing efforts Ongoing
8. Continue annual Halloween Safety campaign Ongoing 2013
Complete
9. Continue annual bicycle safety rodeo. Ongoing
10. Continue providing more short term bicycle parking through the Racks with Plaques bicycle rack
donation program. Ongoing
11. Continue to implement General Plan and Specific Plan transportation policies, programs, and
improvements via private development projects. Ongoing
12. Promote bicycling among City employees. Ongoing
*Projects that are also identified in the “Improve Transportation” Other Important Objectives. Costs for these
tasks are accounted for in the Other Important Objectives.
Status Summary: 15% Complete. The following highlights key accomplishments so far and important next steps:
Other Bicycle and Pedestrian Paths
4. Sidewalk repairs and some ramp work is ongoing, using the Job Order Contract approved by Council, and a ramp
construction project is starting in late November.
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MAJOR CITY GOALS – ECONOMIC DEVELOPMENT
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ECONOMIC DEVELOPMENT
Objective: Implement the adopted Economic Development Strategic Plan – which includes an emphasis on head-of-
household jobs, collaboration, and measureable outcomes.
Action Plan:
Task Current Revised
Break Down Barriers to Job Creation: Permit Processing Improvements
1. Strategy 1.1: Identify opportunities for permit streamlining with the goal of reducing permit
processing times, seeking opportunities to increase internal coordination, and improving
cross department focus on development review.
7/13 – 12/14
Break Down Barriers to Job Creation: Infrastructure and Fees
1. Strategy 1.5(a): Complete an infrastructure financing assessment to establish priorities for
City investment in infrastructure expansion. (This will be accomplished via the LUCE
Update and EIR).
See LUCE
Update and
EIR
7/13-7/14
2. Strategy 1.5(e): Identify one or more strategic infrastructure projects that the City could
invest in to benefit residents, businesses, employees, and property owners by providing a
significant return on investment to the City in the form of increased economic activity.
9/13 – 6/14 Pending
Outcome of
LUCE Update
Break Down Barriers to Job Creation: Key Sites
1. Strategy 1.8: Prepare and update a portfolio of “available properties” ready for development
in accordance with the findings of the permit process streamlining outcomes.
8/13 – 6/14 Pending
Outcome of
LUCE Update
2. Strategy 1.9: Evaluate the supply of land and space for residential and non-residential
development in the expansion areas of the City and prioritize areas with the greatest potential
for near term development that supports new head of household jobs. (This effort will follow
the LUCE Update and EIR).
7/14 – 6/15
Actively Support Knowledge and Innovation: Entrepreneurship/Access to Broadband
1. Strategy 2.2: Convene a cross-department team at the City with input from the local industry
experts, to facilitate expansion of broadband infrastructure including the policy for public-
private partnerships and related endeavors.
7/13 In Process
Promote and Enhance the San Luis Obispo Quality of Life
1. Strategy 3.3: Prepare a City of San Luis Obispo “view book” to facilitate business location
services and use the view book as a tool for business attraction. (This effort is coordinated
with #3, Strategy 1.8 above).
7/13 – 6/14 In Process
Pending City
Website project
2. Strategy 3.6: Explore opportunities to market the City as a place to do business via the airport
and train depots.
Ongoing
Attachment 1
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MAJOR CITY GOALS – ECONOMIC DEVELOPMENT
E-18
Task Current Revised
Build on Existing Efforts and Strengthen Regional Partnerships
1. Strategy 4.2: Work with regional partners such as the Chamber of Commerce and EVC to
bring attention to existing businesses.
Ongoing
2. Strategy 4.3 (b): Through policy changes, enhance data collection using the business licensing
program (HdL) in order to facilitate collection of employment and other data about local
companies.
9/14 – 6/15
3. Strategy 4.3(c): Identify all businesses with ten or fewer employees within the City by
conducting a survey of business owners and developing an action plan that helps businesses
of this size grow.
7/14 – 6/15
Status Summary: 15% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Break Down Barriers to Job Creation
Permit Processing Improvements: The recommendations from the Community Development Departments (CDD)
Organizational Assessment have been used to develop a project plan to execute the permit streamlining process. A
Development Review Team (DRT) is in place to ensure a consistent and expedient approach across all involved
departments. Changes to the DRT process are being implemented to provide a mechanism to track overdue plan checks
and track work flow commitments. A Continuous Improvement Group (CIG) has been formed to ensure that there is cross
department and cross functional input, action and alignment with the improvement process.
Infrastructure and Fees: The first phase of the project with the Consultant (EPS) covering information gathering and
plan development has been completed. In the first quarter of 2014, EPS will lead 3 sessions to lay the foundation for the
future direction of infrastructure financing in the City. We have also started identifying opportunities for investment in
infrastructure but the majority of this work is dependent on the outcome of the business item in March and the final LUCE
update.
Actively Support Knowledge and Innovation
Entrepreneurship/Access to Broadband: The City is currently in the process of evaluating an opportunity to improve
the infrastructure for broadband access in the City. The proposal is targeted to be brought before the City Council in
January 2014. Once this step is completed a cross functional team with local industry experts will be formed and a charter
and work program will be created for the team.
Promote and Enhance the San Luis Obispo Quality of Life
View Book Creation: Initial discussions on the creation of the view book have been completed. Finalization of the path
forward is dependent on the outcome of the City’s new website project.
Additional Activities
Economic Development Dashboard: The process has been started to build an economic development dashboard to help
assess the impact of our activities as well as quantify the economic health of the City. The San Luis Obispo Chamber of
Commerce, the Economic Vitality Corporation and other stakeholders are being consulted on this project.
Attachment 1
B2 - 29
MAJOR CITY GOALS – ASSESS AND RENEW THE DOWNTOWN
E-19
ASSESS AND RENEW THE DOWNTOWN
Objective: Assess and renew the Downtown consistent with the adopted Land Use and Circulation Element (LUCE)
update, revitalize Mission Plaza (including consideration of eliminating dogleg), support the continued development of
cultural attractions, enhance lighting/safety components, reduce incidents of illegal activity and adverse behaviors through
enhanced public safety presence and enforcement, providing pedestrian-friendly walkways, and address limits on alcohol
establishments.
Action Plan:
Task Current Revised
1. Utilize Volunteers in Police Service (VIPS) as downtown patrols 1/14
2. Present concept of an Ambassador Program to the Downtown Association for
consideration.
1/14 Complete
3. Community Action Team Downtown Deployment (CAT) 7/13 Ongoing
4. Dedicated School Resource Officer Daytime Downtown Deployment 7/13 Complete
5. Dedicated Daytime Overtime Downtown Deployment 9/13 Ongoing
6. Two Daytime Downtown Officers Deployment 1/14
7. Public Safety Video Purchase and Implementation in Mission Plaza area 7/13 1/14
8. Extend Mission Plaza Hours Ongoing
9. Retrofit Broad/Marsh restroom and open 9/13 11/13
10. Research additional restroom options and constraints 12/13
11. Council update on additional hours of restroom availability impacts, and recommendations
for additional implementation efforts.
3/14
12. Consideration of a moratorium on additional alcohol outlets 8/13 Complete
13. Mission Plaza Master Plan Initiation 1/14 Awaiting
funding
14. Assess public safety access to existing business camera systems 2/14
15. Employ portable cameras in secluded high crime public areas. 6/14
16. Alcohol Concentration Evaluation and Adoption of Code Amendments 11/14
17. Mission Plaza Master Plan Adoption 9/15 Awaiting
funding
18. Mission Plaza Railing Upgrade Ongoing
Attachment 1
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MAJOR CITY GOALS – ASSESS AND RENEW THE DOWNTOWN
E-20
Task Current Revised
19. Removal and replacement of damaged or hazardous downtown trees and sidewalks 6/15
20. Downtown Renewal, including sidewalks and appurtenances 1/15
21. Initiate and Complete review of Special Event Policy and Use of Mission Plaza 1/15
Status Summary: 20% Complete. The following is a summary of accomplishments and important next steps for this
goal:
2. Ambassador Program has been presented to the Downtown Association. At this time, the Downtown Association has
no interest in pursuing the program.
3. CAT Team – staff has assigned two officers who are currently working in the CAT Team capacity addressin g
downtown concerns.
5. Downtown Daytime Overtime – officers are currently being assigned to the downtown area on an overtime basis.
7. Public Safety Video – staff has solicited bids and is reviewing vendor proposals.
8. Mission Plaza Restroom hours were extended to midnight, starting the beginning of July. Re-commissioning of the
Broad Street restrooms is underway, delayed by long lead time replacement fixtures. The door was replaced in June, the
interior washed down and coated. Restrooms are expected to be open mid to late November.
12. Council held a Study Session in July 2013 regarding alcohol, and staff will be returning in spring of 2014 with further
discussion.
13. & 17. The City was not successful in obtaining a grant for an analysis of Mission Plaza needs. If this work element is
still desired, funding will need to be allocated from the General Fund.
18. The first Plaza Railing project is under design. Priorities have been established based on areas of the railing previously
identified by the JPIA.
Attachment 1
B2 - 31
MAJOR CITY GOALS – SKATE PARK CONSTRUCTION
E-21
SKATE PARK
Objective: Complete construction of the skate park, utilizing a combination of public funds, donations, and grant funding
where possible
Action Plan:
Task Current Revised
1. Submit application for storm water permit 9/13 Completed
2. Skate Park marketing plan 11/13 Completed
3. Receive building and storm water permits 12/13
4. Council approval of Skate Park Public Art design and funding 12/13
5. Issue plans and specifications for construction 2/14
6. Award construction contract 4/14
7. Groundbreaking Spring 2014
8. Start construction 6/14
9. Complete construction 12/14
10. Identify and request maintenance resources 12/14
11. Open Santa Rosa Skate Park 1/15
12. Maintain and operate the Santa Rosa Skate Park Ongoing
Status Summary: 6% Complete. The following is a summary of accomplishments and important next steps for this
goal:
The construction of the Skate Park Project is progressing as outlined in the Major City Goal Action Plan. At this point
98% of the plans, including erosion control, have been completed. Integration of the final public art component into the
plans will occur following Council’s approval in December. It is estimated that bid documents will be ready to advertise
for construction in January 2014.
A project “Notice of Intent” has been prepared and has been submitted to the California State Water Resources Control
Board. Additionally, plans were submitted to the Building Department in October and returned to staff with minor
comments. Resubmission of the corrected plans and final Building Department review is anticipated to be completed by
the end of 2013.
Finalization of the Skate Park Public Art Project is underway, being placed on the Parks and Recreation Commission for
design approval on November 6, 2013 and the Architectural Review Commission on November 18, 2013. The final
review and approval of the Skate Park public art design and funding will be before City Council at its December 10, 2013
meeting.
Attachment 1
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MAJOR CITY GOALS – SKATE PARK CONSTRUCTION
E-22
The Recreation Manager, working in coordination with Public Works, is integrating the proposed public art into the
project including: budget, schedule and integrated construction. In addition to construction and public art integration
progress, a marketing plan and promotional materials have been developed to feature the skate park and its amenities
along the construction phase with an emphasis on how it is funded and its importance to completing this community asset.
The marketing plan officially launched in November 2013.
Attachment 1
B2 - 33
OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE
E-23
OPEN SPACE
Objective: Commit funding to expand open space and provide adequate staffing, planning, and other resources to
maintain and enhance open space quality and amenities.
Action Plan:
Task Current Revised
Real Property Acquisition / Administration and Conservation Planning
1. Pursue key acquisition opportunities including additions to the Reservoir Canyon Natural
Reserve and the Irish Hills Natural Reserve, as well as conservation easements which will
protect larger landscapes including scenic views and City gateways, headwaters to San
Luis Obispo Creek and several perennial streams, and valuable habitat areas.
Ongoing
2. Ongoing annual monitoring of all City-owned space preserves, open space easements, and
conservation easements.
Ongoing
3. Complete Reservoir Canyon Natural Reserve Conservation Plan to include Upper Goldtree
property addition.
7/13 11/13
4. Complete update of the Laguna Lake Management Plan. 9/13 6/14
5. Update Conservation Guidelines for open Space Lands within the City of San Luis Obispo
to address minor inconsistencies with other policy documents.
6/14 12/14
6. Update the Saving Special Places report pertaining to strategic open space acquisition
priorities.
12/14
7. Prepare the Islay Hill, Righetti Hill, and Terrace Hill Conservation Plans 6/15
Land Restoration, Stewardship, and Monitoring
1. Continue sediment removal project at Prefumo Creek inlet to Laguna Lake and continue
monitoring of four other sediment removal locations completed in 2012.
Ongoing
2. Continue vegetative stabilization efforts associated with road decommissioning project at
Froom Ranch.
Ongoing
3. Ongoing community outreach and education in partnership with ECOSLO Ongoing
4. Creek and flood protection within the City’s natural waterways through Zone 9 projects and
coordination and oversight of the Stormwater Management program.
Ongoing
5. Ongoing monitoring, remedial action, and enhancement, as needed, of existing mitigation
sites.
Ongoing
6. Complete pampas grass treatment at Froom Ranch 3/14
7. Install wetland meadow and riparian planting / invasive species control at Calle Joaquin
Agricultural Reserve suing awarded EEMP grant funds
12/14
Attachment 1
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OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE
E-24
Task Current Revised
Open Space Improvements, Maintenance, User Safety, and Patrol
1. Continue patrol of the City’s open space areas and creek corridors Ongoing
2. Continue maintenance of existing City open space trails Ongoing
3. Continue to coordinate 65 trail work days (3,500 hours) a year utilizing volunteers Ongoing
4. Continue to partner with the Central Coast Concerned Mountain Bikers on various open
space improvements and maintenance.
Ongoing
5. Continue to construct additional trails at Froom Ranch consistent with the approved Irish
Hills Conservation Plan.
Ongoing
6. Evaluate and implement long term solution to address unsanctioned and user created trails at
Bishop Peak, and continue to evaluate and address trail head parking burdens in surrounding
neighborhoods with signs, patrol, and dissemination of directional information on the City’s
website, trail maps, and in SLO Stewards.
Ongoing
7. Evaluate and implement long term solution to maintain singular and sustainable access trail
at the Maino Open Space.
Ongoing
8. Continue Ranger Led Hikes in the City’s open space on a monthly basis and upon request. Ongoing
9. Continue Ranger Service environmental education program and Junior Ranger Camp to
increase open space knowledge and user safety.
Ongoing
10. Increase staffing resources in the Ranger Service program to provide increased user safety
and amenities including but not limited to added open space improvements, maintenance,
and patrol.
Ongoing Complete
11. Re-route and construct a trail connecting Froom Ranch to the Bureau of Land
Management’s parcel in accordance with the Memorandum of Understanding with the
Department of Interior.
6/15
12. Install new trail signs and kiosks including but not limited to: Froom Ranch, Froom-
Johnson Ranch connector trail, and Reservoir Canyon.
6/15
13. In coordination with Cal Poly engineering volunteers complete the Reservoir Canyon
bridge repairs.
6/15
14. Develop donation station program; creating avenue for further support of open space
maintenance and preservation (opportunities include Iron Rangers in possible partnership
with Public Art).
6/15
Urban-Wildland Interface Fuel Reduction
1. Bowden Ranch Open Space Eucalyptus thinning Ongoing
2. Irish Hills Open Space Eucalyptus thinning and mowing Ongoing
3. Terrace Hill Open Space mowing Ongoing
Attachment 1
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OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE
E-25
Task Current Revised
4. Islay Hill Open Space mowing Ongoing
5. Maino Open Space / Lemon Grove Eucalyptus thinning Ongoing
Status Summary: 10% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Real Property Acquisition/Administration and Conservation Planning
Staff is currently working on several conservation land acquisitions, to include both purchases and dedications. These
projects, if successful, total approximately 1,600 acres of important open space lands in and around the City. Annual
monitoring of open space properties and conservation easements are on schedule. The Reservoir Canyon Natural Reserve
Conservation Plan has been reviewed and recommended to the City Council by the Parks and Recreation Commission,
Planning Commission, and Cultural Heritage Committee, with final adoption by the City Council scheduled at its
November 19th meeting. The Laguna Lake Management Plan Update is in plan preparation stage and will begin being
heard by appropriate advisory bodies in early 2014. A Cal Poly student has begun work on the Terrace Hill Conservation
Plan as her senior project, with oversight and guidance from the Natural Resources Program staff.
Land Restoration, Stewardship, and Monitoring
The City Biologist continues to track and monitor numerous new and existing sediment removal projects, as well as
provide oversight to annual “winterization” efforts in our waterways to help prevent flooding. The wetland meadow
project at the Calle Joaquin Agricultural Reserve and the pampas grass removal project at Froom Ranch are in planning
stages with staff currently working to requisition project materials and appropriate landscape restoration contractors.
ECOSLO is in contract to continue to assist the Natural Resources Program with community outreach through SLO
Stewards and the Natural San Luis Docents program.
Open Space Improvements, Maintenance, User Safety, and Patrol
During summer 2013, the Parks and Recreation Department hosted two "at capacity" Junior Ranger Camps; educating
approximately 40 children about local plants, animals, and sustainable practices in the City's natural areas. As approved in
the 2013-15 Financial Plan, a full-time permanent Ranger Maintenance Worker was hired and started work for the Parks
and Recreation Department on October 24. Ongoing work on open space maintenance, user safety and patrol continues.
On November 16, in partnership with the Central Coast Concerned Mountain Bikers, City Rangers coordinated the
construction of approximately one half of a mile of new trails in the Irish Hills Natural Reserve. Regular Saturday work
days and Eagle Scout projects have occurred throughout the summer and fall seasons accomplishing ongoing maintenance
in the open space areas.
Urban-Wildland Interface Fuel Reduction
Annual mowing and weed abatement was completed for summer 2013. A fuel reduction project is scheduled for the
Bowden Ranch area in winter 2013-14, and will be followed in winter 2014-15 at the Cerro San Luis / Maino Open Space
and Irish Hills Natural Reserve. Fire Department staff secured a $10,000 Fire Safe Council grant to match the City’s
funds for these efforts. A Cal Poly master’s student in City and Regional Planning is preparing a Vegetation Management
Plan in coordination with the Natural Resources Program and Fire Department for her graduate project.
Attachment 1
B2 - 36
OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE
E-26
MAINTENANCE OF CITY INFRASTRUCTURE
Objective: Enhance maintenance of City infrastructure including attention to streets, sidewalks, pedestrian walkways,
lighting, bicycle paths, creek and flood protection, parks, open space, urban forest, public buildings, and other City-owned
property.
Action Plan:
Task Current Revised
Buildings
1. Facility Maintenance Ongoing
2. Jack House exterior painting 6/14
3. Jack House restroom remodel 6/14
4. Police station HVAC replacement 6/15
5. City Facility parking lot maintenance 6/15
6. City Hall perimeter drain 6/15
7. Minor exterior building painting 6/15
8. Fire Station & Corporation Yard roll-up door replacement 6/15
9. Golf Course restroom replacement design 6/15
Water
1. Distribution system and treatment facility maintenance Ongoing
2. Water Distribution system improvements – year 1 6/14
3. Telemetry system improvements 6/14
4. Stenner Canyon Raw Waterline replacement 6/15
5. Water Treatment Plant air compressor replacement 6/15
6. Water Distribution system Improvements – Year 2 6/15
7. Distribution pump station upgrade design 6/15
8. Serrano Tank replacement 6/15
9. Slack Tank replacement design 6/15
Wastewater
1. Collection system and treatment facility maintenance Ongoing
Attachment 1
B2 - 37
OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE
E-27
Task Current Revised
2. Water Reclamation Facility major maintenance – year 1 6/14
3. Wastewater Collection system improvements – year 1 6/14
4. Water Reclamation Facility major maintenance – year 2 6/15
5. Wastewater Collection system improvements – year 2 6/15
Roadways
1. Roadway and traffic signal & lighting maintenance activities Ongoing
2. Street reconstruction & resurfacing – year 1 12/13 Complete
3. Street reconstruction & resurfacing – year 2 12/14
4. Prado Bridge deck overlay 6/15
5. Sidewalk repairs 6/15
6. Traffic sign maintenance 6/15
7. Marsh Street bridge design 6/15
8. Downtown lighted crosswalk replacement 6/15
Creek and Flood Protection
1. Creek encampment cleanup Ongoing
2. Storm drain system cleaning Ongoing
3. Annual creek winterization Ongoing
4. Johnson Underpass pump replacement 6/14
5. Broad & Leff culvert repair 6/14
6. Storm drain replacement – year 1 6/14
7. Storm drain replacement – year 2 6/15
8. Hathway & Murray culvert repair design 6/15
Parking
1. Structure and lot maintenance Ongoing
2. Parking lot resurfacing 6/14
3. 919 Palm Structure stair rehabilitation 6/14
Attachment 1
B2 - 38
OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE
E-28
Task Current Revised
4. Marsh Structure light replacement 6/14
Transit
1. Bus stop shelter replacement 6/15
Parks, Tree, and Landscape Maintenance
1. Parks, trees, medians, roadway, and facility landscape maintenance Ongoing
2. Santa Rosa Park picnic & serving table replacement 6/14
3. Pathway maintenance – year 1 6/14
4. Sinsheimer Park playground equipment replacement 6/14
5. Pathway maintenance – year 2 6/15
6. Sinsheimer Stadium stair replacement 6/15
7. Mission Plaza rail replacement 6/15
8. Meadow Park light replacement 6/15
9. Downtown tree replacement & sidewalk repair 6/15
Swim Center
1. Swim Center maintenance Ongoing
2. Replace chemical pumps 6/14
3. Olympic pool plastering 6/15
Golf Course
1. Golf Course maintenance Ongoing
Open Space
1. Open space and trail maintenance Ongoing
City Maintenance & Asset Management
1. Complete implementation of Cityworks Asset & Maintenance Management Software 6/15
Status Summary: 15% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Attachment 1
B2 - 39
OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE
E-29
Buildings
3. Jack House Restrooms will advertise in November, pending Council approval.
Roadways
2. Street Reconstruction is complete on portions of California Blvd and Fredericks Street.
5. Sidewalk repairs are ongoing, using the Job Order Contract approved by Council.
Creek & Flood Protection
3. During October and November, Natural Resources staff is working with contract service providers to clear excessive
vegetation. Natural Resources and Public Works maintenance staff have teamed up to remove accumulated silt and drain
pipe outlets in small open channel areas. Accumulations can cause backups in the system, aggravating flooding.
6. The first Storm Drain replacement project has opened bids and will start work in late November.
City Maintenance & Asset Management
1. Parks, Forestry, and Facility maintenance staff launched the new Cityworks program during the last week of October.
Wastewater, Water, and Street maintenance staff will convert the middle of November. The staff will continue to learn
and become proficient at using the program in the coming months.
Parking
1. Parking Lots 2, 3, 11 all completed for resurfacing and pothole remediation in November 2013.
Attachment 1
B2 - 40
OTHER IMPORTANT COUNCIL OBJECTIVES – IMPROVE TRANSPORTATION
E-30
IMPROVE TRANSPORTATION
Objective: Improve transportation – prioritize the construction of the Los Osos Valley Road (LOVR) overpass, invest in
new sidewalks, bicycle paths, street lighting, curb cuts, and other amenities to improve the walkability of the City’s
neighborhoods and commercial districts.
Action Plan:
Task Current Revised
1. Los Osos Valley Road Interchange
- complete design and permitting work
- begin construction
12/13
10/14
2. Prado Road Creek Bridge Widening – NEW
- begin project study report
- begin environmental, design, and permitting work
- complete environmental, design, and permitting work
- begin construction
7/13
7/14
6/17
6/18
Complete
3. Railroad Safety Trail
- complete design of Class I bikeway – Taft to Pepper
6/14
4. Bob Jones City-to-Sea Trail
- complete construction of Class I bikeway connection to LOVR
2/14
5. Rehabilitate Downtown lighted crosswalks – NEW
- complete Marsh Street in-ground lighted crosswalk
- complete Higuera Street in-ground lighted crosswalk
6/14
6/16
6. Continue Land Use & Circulation Element Update 6/14
7. Continue the Neighborhood Traffic Calming program and associated projects Ongoing
8. Continue the Annual Traffic Safety program and associated projects Ongoing
9. Continue the bi-annual Traffic Operations program and associated projects Ongoing
10. Continue misc. bicycle facility improvements Ongoing
11. Complete bi-annual citywide bicycle, pedestrian, and vehicle counts (contingent on TIFF
funding availability)
Ongoing
12. Complete Fleet vehicle conversion / replacement 7/13 4/14
13. Conduct Short Range Transit Plan (SRTP) (contingent on grant funding availability)
- Evaluate possibility of Joint RTA/SLO City SRTP
- Issue RFP & hire consultant
- Complete plan & present to Council
6/15
Status Summary: 10% Complete. The following is a summary of accomplishments and important next steps for this
goal:
Attachment 1
B2 - 41
OTHER IMPORTANT COUNCIL OBJECTIVES – IMPROVE TRANSPORTATION
E-31
Fleet Replacement
The Fleet replacement has been impacted by the inability to fill the Fire Vehicle Mechanic position. The Fleet Supervisor
has acted in a dual position capacity since June 2013 while additional recruitment efforts have been undertaken. Major
vehicle replacement orders (fire engine, traffic signal boom truck, Police department vehicle replacements) have been
accomplished in order to address procurement timing, fleet safety and CARB air quality mandates.
Short Range Transit Plan
The Short Range Transit Plan update has been delayed due to funding delay for the RTA component of the study. The
City is working with SLOCOG and RTA to submit additional Caltrans planning grant requests to save local funds and
leverage limited transit funding. SLOCOG has approved a deferral of the City’s SRTP update to accomplish the joint
planning effort.
Los Osos Valley Road Interchange
The LOVR Interchange design has been submitted to Caltrans in a 100% design format and is awaiting review and
approval. Interviews for a consultant project manager have been conducted in November with anticipation that these
services will begin in December or early January. Final right of way acquisitions from private property owners are
substantially complete.
Land Use and Circulation Element
The Land Use and Circulation Element continues to be a significant work effort for staff and the LUCE task force with
many meetings being conducted and policy level recommendations being discussed.
Attachment 1
B2 - 42
CARRYOVER GOALS AND OBJECTIVES
E-32
The following summarizes the status of “carryover” goals and important objectives from the 2011-13 and 2009-11
Financial Plans. In several cases, “carryover tasks” have been incorporated into the Major City Goals (or “Other
Important Council Objectives”) for 2013-15, and as such, they are not repeated in this section.
OTHER IMPORTANT COUNCIL OBJECTIVES
PLANNING: UPDATE LAND USE AND CIRCULATION ELEMENTS
Objective: Within the scope of the Strategic Growth Council (SGC) Grant, undertake an update of the Land Use and
Circulation Elements; including “Healthy Cities,” complete streets, and pedestrian circulation policies.
Building on the work completed in the previous fiscal year and public input from four workshops, on-line tools such as
Mind-Mixer, the Community Survey, and participation in hearings and open houses, the Task Force for the Land Use and
Circulation Elements update (TF-LUCE) and Planning Commission reviewed potential physical changes to land uses and
circulation and provided recommendations to the Council for consideration. The Council endorsed a set of physical
alternatives to be considered through the environmental review process on October 15, 2013. The TF-LUCE has been
reviewing the legislative drafts of the documents and providing input and recommendations for changes. Since July, the
TF-LUCE has held four meetings and will have six more prior to the end of the calendar year while they work through the
policy considerations. The Planning Commission will review the TF-LUCE’s policy recommendations in December.
The fifth community workshop will be held on December 7th to review the concepts in the legislative drafts, discuss EIR
scoping, and provide feedback for Council consideration in January. The policy work and physical alternatives will form
the basis of the project description to be evaluated through an Environmental Impact Report, anticipated to be started in
February 2015.
Attachment 1
B2 - 43
CARRYOVER GOALS AND OBJECTIVES
E-33
2013-15: First Update
As of November 1, 2013
Attachment 1
B2 - 44
STATUS OF MAJOR CIP PROJECTS
E-34
Under Construction
Design
Study
0%10%20%30%40%50%60%70%80%90%100%
Laguna Lift Station Replacement
Railroad Safety Trail—Hathway to Taft
Bob Jones Trail Connector at LOVR
Street Reconstruction/Paving
Open Space Acquisition
0%10%20%30%40%50%60%70%80%90%100%
Skate Park
Water Reclamation Facility Energy Upgrade
Playground Equipment Replacement
Railroad Safety Trail—Taft to Pepper
Marsh Street Bridge Replacement
Water Reclamation Facility Upgrade
Downtown Directional Signs
Website Upgrade
Gateway Monument—Santa Rosa & Highland
Calle Joaquin Lift Station Replacement
Storm Drain System Replacements
Playground Equipment Replacement
LOVR Interchange
Bicycle Facility Improvements
Johnson/Santa Rosa/Emerson Parks
Mitchell/Sinsheimer/Islay Hill/Ludwick/Vista Lago
0%10%20%30%40%50%60%70%80%90%100%
Bob Jones Trail Octagon Barn Connection
Attachment 1
B2 - 45
STATUS OF MAJOR CIP PROJECTS
E-35
Attachment 1
B2 - 46
FROM: Wayne Padilla, Director of Finance and Information Technology
SUBJECT: GENERAL FUND FIVE YEAR FISCAL FORECAST: 2013-18
RECOMMENDATION
Review and discuss the results of the General Fund Five-Year Fiscal Forecast for 2013-18.
DISCUSSION
Forecast Purpose
The purpose of the attached Five-Year Fiscal Forecast is to assess the General Fund’s ability over
the next five years to accomplish five things:
1. Deliver current service levels;
2. Maintain existing infrastructure, fleet, information technology (IT), and facilities;
3. Preserve the City’s long-term fiscal health by aligning operating revenues and costs;
4. Maintain fund balance at policy levels; and
5. Reinvest in the General Fund supported Capital Improvement Program, particularly in areas
that are underfunded such as infrastructure maintenance, fleet replacement, IT replacement,
and facilities maintenance.
It is important to stress that the forecast is not the budget: it does neither make expenditure
decisions nor revenue decisions. Its sole purpose is to provide an “order of magnitude” feel for
the City’s ability to continue current services, maintain existing assets and fund new initiatives.
Ultimately, this forecast cannot answer the question: “can the City afford new initiatives?” This
is a basic question of priorities, not of financial capacity. However, the forecast helps identify
the key factors affecting the City’s fiscal outlook. Additionally, while the forecast does not make
budget decisions, it gives the Council, the community, and staff an early “heads-up” in assessing
how difficult making these priority decisions will be.
Summary of Forecast Findings
This fiscal forecast indicates that the City is making progress on its journey to financial
sustainability. While no city has fully recovered from the effects of the worst recession since the
Great Depression, there is reason for cautious optimism here in San Luis Obispo. In general,
revenues have begun to recover and cost containment measures, including reform of the City’s
retirement benefits, are working. The fiscal forecast indicates prudent decision making has placed
the City in a position where revenues will exceed expenditures; it can continue to provide
services to the community as prioritized in the financial planning process; it will meet the policy
objective of a 20 percent reserve; it will absorb additional required operating costs and reinvest in
the CIP.
12-10-12
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General Fund Five-Year Fiscal Forecast: 2013-18 Page 2
As it relates to revenue, the City is experiencing a resurgence of several revenue sources (namely
sales tax, transient occupancy tax (TOT), utility users tax and developer fees) while other
revenues are holding steady. With respect to development
fees, the City must not assume that it has returned to a period
of continuing activity and must not base decisions on the
assumption that these revenues will continue to come in at
these levels. The City must also be alert for any effects that
may result from the federal government’s in ability to adopt a
budget and maintain spending within the existing debt ceiling.
Containing operating expenditures, particularly related to
personnel costs, has been a primary focus on the financial
sustainability journey over the past two years. Through budget-driven negotiations, the City has
set the stage for ongoing savings that will deliver $3.1 million per year in reduced personnel
costs in addition to the savings that will come about from the actions taken to create new
retirement benefit programs for new hires. The forecast assumes that employer cost increases in
the Public Employees Retirement System (PERS) program will take effect starting in 2015-16
and begins to capture 1% of payroll in 2014-15 and 2% in 2015-16 in order to begin setting aside
the resources needed to fund the higher employer rates. Staff continues to monitor all actions
being considered by PERS to increase employer costs and is prepared to create new cost forecasts
as that information becomes available. Staff is also assessing how to limit costs in the future as it
relates to retirement costs (paying down the side fund or any other long term retirement liability)
and insurance programs for workers compensation and general liability.
The forecast also assumes significant, on-going and increasing re-investment in the City’s
General Fund supported capital assets. In the last two years there have been multiple occasions
when the City Council expressed a desire to reinvest in the City’s existing assets (infrastructure,
information technology, fleet and facilities) as well as new “bricks and mortar” assets. Examples
of new investments will include bicycle lanes, pedestrian improvements, and the Santa Rosa
skate park. The forecast assumes re-investment in existing assets of all types: Information
Technology equipment, vehicles and other rolling stock, building as well as infrastructure such as
streets and stormdrains. It is worth noting that the amounts reflected after 2014-15 are place
holders and may change depending upon the direction that is received from the City Council and
changing financial conditions.
It is important to note that while there is increasing re-investment in the City’s capital
infrastructure, no funds have been set aside for purposes of enhancing operating programs or
addressing the organization’s capacity to achieve the enhanced capital expenditures that are
planned. In other words, there is no pre-planned set-aside for staff, consultants or other expenses
associated with new or enhanced operating programs. This approach was taken because it is
virtually impossible to project City Council and community priorities for operating program
enhancement. In sum, as the Council evaluates the City’s financial position, it should consider
that different allocations from those identified in the forecast may be warranted based on the
outcomes of the goal setting process and the needs associated with achieving those outcomes.
Forecast Findings
Prudent and thoughtful
policy decisions have lead
to a stronger financial
condition which is cause
for cautious optimism.
However, uncertainties
remain.
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General Fund Five-Year Fiscal Forecast: 2013-18 Page 3
There is a second report prepared for this evening’s agenda which addresses the status of Major
City Goals and also reviews the unaudited financial results from 2012-13. That report should be
read in conjunction with this report on the fiscal forecast since the starting point of the forecast is
the ending balance of the last completed fiscal year.
As indicated in that report, the ending fund balance grew by $5.3 million, which is $5.1 million
more than was expected. There were three primary reasons for this happening:
1. Revenues exceeded budget estimates by $1.4 million as development fees, sales tax,
TOT, Utility User’ Taxes and other revenues exceeded a conservative forecast for the
year. (Staff will be evaluating these results to determine what changes if any should be
made to the forecast revenues as part of the mid-year budget update process that will
culminate in a presentation to the City Council in February.)
2. Cost savings totaled $2.7 million, even after counting encumbered funds that will be
carried forward. This level of savings exceeded the forecast amount by $633,000;
3. A correction of $1.8 million was made to the fund balance to adjust prior years’ accrued
sales tax amounts in line with the information provided by the Board of Equalization.
(This adjustment will not have a detrimental effect on future sales tax estimates currently
in the forecast.)
While the forecast reflects the one-time use of a portion of the excess General Fund reserve, that
amount which is above the minimum 20% policy reserve amount. This spending was approved
by the City Council as part of the 2013-15 Financial Plan and includes $1.2 million for Skate
Park construction; $500,000 for replacement of Information Technology equipment; $500,000
for reinvestment in Major Facility Replacement projects; $20,000 for permit streamlining
implementation; and $50,000 for Revenue Measure Outreach and Education. It is important to
note that had these one-time costs not been planned, the General Fund would reflect excess
revenues over expenditures of $141,000 in the current year. All other years shown in the forecast
reflect revenues in excess of expenditures.
It must be mentioned here that the previous commentary on the City’s fiscal outlook assumes that
voters renew the current general purpose half-cent sales tax measure or another similar measure
in 2014. If this does not occur, revenue from the half-cent sales tax would no longer be collected
effective April 1, 2015, affecting the last three months of the 2013-15 Financial Plan period. If it
is not renewed and the City takes no corrective action, the City would spend as much as $7.7
million more during the forecast period than it garners from revenues resulting in a budget gap
(that amount below the minimum 20% policy reserve) that would cumulatively total $24 million
by 2017-18. This is the worst case scenario if the City took no corrective action between 2014-15
and 2017-18. Starting next month, staff will begin preparing the outline of a contingency plan
and will then formulate a budget adjustment scenario that will ultimately be presented to Council
in June 2014 for review.
In order to illustrate the impacts of eliminating Measure Y resources, a secondary Five-Year
Fiscal Forecast is included. (All other assumptions remain unchanged.) This separate forecast
highlights the loss of revenue should the revenue stream from Measure Y cease. As outlined to
the Council on September 4, 2012, this information is provided so that the Council and the
community could understand the magnitude of the impacts of the half-cent sales tax on the
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General Fund Five-Year Fiscal Forecast: 2013-18 Page 4
services being provided. At that meeting, the Council approved the process by which this issue
would be outlined as part of the forecast in order to provide context.
The report that accompanies the fiscal forecast contains a host of facts about the forecast process
and the factors used to determine each year’s revenue and expenditure levels. While the forecast
and the report on the status of the 2012-13 Fiscal Year represent positive fiscal news, it is best to
follow the City’s practice of waiting for the mid-year update to occur in February before any
decisions are made with regard to the use of the larger reserve for one-time costs and the
improving revenue picture. This will give staff an opportunity to assess these results, look at
trends occurring within the current year and return to the City Council with a complete update on
all of this information.
SUMMARY
The City will go into 2013-15 with a number of positive outlooks compared with many
communities in California:
1. A balanced 2013-14 budget and reserves that are above minimum policy levels.
2. Strong financial policies, systems and procedures in place.
3. Cost containment measures that have already been put into place.
4. Excellent Council leadership.
5. Committed and engaged citizens.
6. Excellent organization and capable staff.
7. A tradition of responsible stewardship.
This “civic infrastructure” is simply not in place in many other cities and it will serve the City
well in successfully meeting the fiscal challenges ahead. Moreover, the fact remains that, in
good times or bad, the fundamental policy questions posed by the budget process are the same: of
all the things we want to do in making our community an even better place, which are the most
important and what is the resource trade-offs needed to accomplish them?
ATTACHMENT
1. General Fund Five-Year Forecast: 2013-18
T:\Council Agenda Reports\2012\2012-12-18\Budget Foundation for 2013-15 Financial Plan- 5 YR Financial Forecast (Lichtig-Codron-
Stanwyck)\CAR13-18Five year Forecast.doc
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General Fund Five Year Forecast for the Period from 2013-2018 (December 2013 Update)
TABLE OF CONTENTS
INTRODUCTION
Overview
Purpose and Summary of Forecast Findings 1
Where We’ve Been 2
Revenue Forecast 3
Expenditure Forecast 5
Summary 8
Synopsis of Major Assumptions
Demographic Trends 9
Expenditures 9
Key Revenues 9
Fund Balance 10
FIVE YEAR FORECAST SUMMARY
Forecast of Revenues, Expenditures and Changes in Fund Balance 12
Forecast of Revenues, Expenditures and Changes in Fund Balance-
without measure Y 13
Attachment 1
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OVERVIEW
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PURPOSE AND SUMMARY OF FORECAST FINDINGS
PURPOSE:
The purpose of this forecast is to assess the General Fund’s ability over
the next five years—on an “order of magnitude” basis—to do five things:
1.Deliver current service levels.
2.Maintain the City’s existing infrastructure and facilities based on past
funding levels.
3.Preserve the City’s long-term fiscal health by aligning operating
revenues and expenditures.
4.Maintain fund balance at policy levels.
5.Reinvest in the General Fund supported Capital Improvement
Program, particularly in areas that are underfunded such as
infrastructure maintenance, fleet replacement, Information
Technology replacement, and facilities maintenance.
The forecast does this by projecting likely revenues and subtracting from
them operating costs, debt service and the Capital Improvement Program
(CIP). The balance remaining is available for Council decision on whether
to build reserves to guard against future financial uncertainties or make
additional investments to maintain infrastructure, create new capital
improvements or to finance operating initiatives.
It is important to stress that this forecast is not a budget.
The forecast does not make expenditure decisions or formally adopt
revenue numbers. Its sole purpose is to provide a context for considering
the City’s ability to continue current services, maintain existing assets
and/or fund new initiatives. Ultimately, this forecast cannot answer the
question: “can we afford new initiatives?” This is a basic question of
priorities. Funding new initiatives within existing resources would require
adjustments within the existing budget to provide the required resources.
As a result, making trade-offs and determining priorities is a key aspect of
the budget process. The forecast is a helpful tool in this regard because it
provides an important framework for decision-making by projecting the
revenues that will likely be available in the future to cover the cost of
maintaining current service levels.
SUMMARY OF FINDINGS:
The City’s efforts to control costs have been successful and are ongoing.
Policy leadership by the City Council and implementation efforts by City
employees have led to this outcome.
Prudent spending and financial
management allow the city to
consistently keep expenditures under
budget in both operational and
staffing categories. These cost savings
coupled with past budget reductions
and modest revenue enhancements are helping to fund services for
residents and the community while allowing additional investment in
critical infrastructure to occur. It should be noted that revenues will be
reduced by over $7 million and an overall funding shortfall will occur after
2014-15 if Measure Y is not reauthorized by the voters in November 2014.
If Measure Y is not reauthorized, those revenues would cease to be
collected in April 2015. The impact of that potential loss is shown in a
separate fiscal forecast on page 13.
Why is the forecast better than what was expected two years ago?
There are two primary reasons why the forecast continues to show
improvement. As stated above, the City’s cost control measures have
been effective and growth in the General Fund’s major revenues is
expected to continue at a modest rate throughout the forecast period. As
an example, key revenue sources such as sales tax and Transient
Occupancy Tax (TOT) have rebounded and have been growing for the past
three years with TOT exceeding its pre-recession peak in 2011-12. The
forecast projects continued moderate growth in these sources. After
three years of minor declines, property tax revenue returned to positive
PROGRESS ON THE
PATH TO
FISCAL
SUSTAINABILITY
Attachment 1
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OVERVIEW
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growth in 2012-13 with very modest increases forecast for the future.
While the revenue picture is positive, especially compared to the recent
past, the rate of increases projected is less than the rates seen in previous
periods of economic growth. The Fiscal Forecast reflects the belief that
revenue growth will be “slow and steady” as a symptom of the deep and
prolonged recession that began in late 2006. There is more discussion
later in this report regarding specific revenues related to the results seen
in 2012-13.
On the cost side of the equation, the Council took decisive action to
reduce expenditures with the adoption of the 2011-13 Financial Plan. This
was in addition to actions taken during previous financial plans to reduce
costs and address the budget gap. Most recently, these expenditure
reductions have been accomplished by controlling operating costs,
reducing staffing levels, negotiating personnel compensation reductions,
and constraining investment in the Capital Improvement Program. For the
longer term, the City has achieved second tier pension formulas with
reduced benefits for all new City employees. This is a critical element in
the City’s plan to contain costs for future hires who are already members
of the Public Employees Retirement System (PERS) because State pension
reform only establishes reduced pension formulas for new PERS members.
These actions, coupled with the City’s plan to begin addressing the
proposed increases in the cost of PERS retirement by taking those costs
into account a year before they are scheduled to begin in 2015-16 will
help the City minimize the effect of future pension cost increases, which
have and will continue to be a major cost driver and source of uncertainty.
More information is provided on expenditure trends later in this report.
The City continues to benefit from the lower interest rates that were
obtained from the two debt refinancings that were completed in 2011-12.
In both cases the City received an AA+ implied General Obligation bond
rating from Fitch Rating Services and the City compares favorably on many
indices with certain AAA-rated cities.
WHERE WE’VE BEEN
The City’s journey to financial sustainability has been on-going, and it is
helpful to review where it has been and the steps that have been taken in
response to the constant changes in our financial condition.
In the 2009-11 Financial Plan, Council responded to declining revenues
caused by the severe recession and unanticipated staffing cost increases
with actions to reduce the budget by $11.3 million. While reserves and
added revenues played an important role, about 80% of the budget-
balancing strategy again relied upon expenditure reductions with the bulk
provided by CIP reductions. Reductions from 3-11% by department were
imposed with the deepest reductions occurring in the support
departments. These reductions included 17.2 regular positions and 6.4
temporary full time equivalent (FTE) positions in the General Fund. This
also included salary deferrals by employees totaling nearly $1 million.
The 2009-11 Financial Plan Supplement (2010-11 budget) included
additional cuts of almost $1 million in operating expenses and almost $2
million in CIP reductions.
The 2011-13 Financial Plan focused on permanent, on-going changes as
much as possible, with departmental operating budgets and employee
concessions being the two largest elements of the budget balancing
strategy. Revenue enhancements were also part of the strategy, but were
limited due to recognition that the City’s long-term sustainability depends
more on cost control than on development of new revenue sources.
Therefore the 2011-13 Financial Plan included ongoing employee
concessions totaling $3.1 million in all funds, or $2.6 million in the General
Fund, as indicated in the chart below. This financial objective set the
stage for Council labor relations objectives that included pension reform
and a 6.8% reduction in employee total compensation.
Attachment 1
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OVERVIEW
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General Fund Budget Balancing
Elements 2011-12 2012-13
Revenue enhancements $ 301,300 $ 351,300
Operating budget reductions 1,812,000 1,956,000
Employee concessions 1,300,000 2,600,000
Operational efficiencies /NOBBs 50,000 100,000
Fiscal Health Contingency Plan Elements Still Active
Twice since 2008, the City has implemented actions in its fiscal health
contingency plan. The first implementation was in response to the
adverse financial impacts of the 2008 binding arbitration decision (binding
arbitration has since been eliminated through a Charter amendment
approved by City voters on August 30, 2011). Actions were again taken
due to the significant downturns in revenues in 2009-10, which included a
hiring freeze. During 2012-13, a “hiring chill” remained in place requiring
the City Manager to approve all hiring actions including backfilling
budgeted vacant positions. The City Manager’s judicious use of the “chill”
resulted in considerable salary savings without the potentially arbitrary
impact on operations that can be caused by a full hiring freeze.
Reserve Levels Have Been Maintained
The City made strategic use of its reserve funds as lower operating
expenditures produced a proportionally smaller reserve requirement.
Reserves have been maintained at or above the policy level of 20% of
operating expenses throughout the financial difficulties of the last several
years. Since 2010-11 the City achieved higher than expected revenues,
and expenditure savings, resulting in higher than projected fund balances.
(The results for 2012-13 are based on preliminary, unaudited values.)
REVENUE FORECAST
Reset of Revenue Base
Beginning in 2006, the United States experienced the deepest and longest
recession since the Great Depression. The bursting of the housing bubble
was followed by a crisis in the financial markets, high levels of
unemployment and a sharp decline in consumer spending. All of this had
a negative effect on the local economy starting in 2008. Since then,
several of the City’s top revenues declined or at best stayed flat. Sales tax
(including Measure Y), property tax and transient occupancy tax (TOT)
account for about two-thirds of all funding sources in the General Fund.
As stated earlier, these sources have begun to recover at varying rates
with a continuing forecast for “slow and steady ”increases to continue
throughout the forecast period. The recovery outlook has been tempered
with a bit of uncertainty regarding concerns that there could be future
economic turmoil caused by unresolved economic issues, including the
on-going lack of a federal budget and challenges in addressing the federal
government’s debt ceiling. Uncertainty in the European economy remains
a concern as well. This long slow recovery with low growth rates and
continued uncertainty is often referred to as the “new normal.” It also
means that revenue forecasts must be understood in context. Because of
the various uncertainties associated with the current economic recovery,
staff has erred on the conservative side when making these projections.
Sources used in developing revenue projections for the forecast include
long and short-term trends in key City revenues, data from the Central
Coast Economic Forecast project; information developed by the State
Legislative Analyst and the State Department of Finance; and materials
prepared by the League of California Cities and State Controller's Office.
To assist in improving the reliability of revenue forecasts, staff has
engaged the services of Beacon Economics to provide assistance in
developing growth trends for a number of key revenues sources.
Beacon’s projections will be discussed in the applicable narrative
discussions below.
Attachment 1
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OVERVIEW
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Ultimately, the revenue projections in this forecast reflect staff's best
judgment about the performance of the local economy during the next
five years and how it will affect the City's General Fund revenues.
Forecast
Sales Tax. For the last two fiscal years the City’s growth estimates for
Sales Tax revenue have been exceeded. These estimates were last
updated as part of the 2011-13 Financial Plan and the 2012-13 budget.
The 2013-14 growth rate projection is 3.6%, followed by a 3.7% increase in
2014-15, 3.8% in 2015-16, 4.94% in 2016-17(which reflects anticipated
revenues to be generated from the Chinatown project)and 4% in 2017-18.
The following table includes the City’s most recently approved sales tax
growth projections, along with projections provided by Beacon Economics
and HdL, the City’s sales tax advisor. The data indicates varying degrees of
confidence in taxable sales growth over the forecast period. Staff
recommends using HdL’s growth assumptions in the current forecast
calculation, consistent with our conservative approach to projecting
revenues during this uncertain economic recovery.
Sales Tax Growth Projections
2013-14 2014-15 2015-16 2016-17 2017-18
Staff 3.74% 4.0% 3.8% 4.94% 4.0%
HdL 5.0% 4.0% 4.0% 4.0% 4.0%
Beacon 5.0% 6.4% 8.0% 7.8% 6.6%
Measure Y. The growth projections for Measure Y revenue, the local half-
cent sales tax, are the same as identified in the previous table for all sales
tax revenue. This document includes a forecast of revenue, expenditures
and changes in fund balance without Measure Y renewal. It should be
noted that if Measure Y is not renewed, revenue from the half-cent sales
tax would no longer be collected effective April 1, 2015. This reduction in
revenue would affect the last three months of the 2013-15 Financial Plan
period, and the last three years of the forecast. As shown in the forecast,
if Measure Y is not renewed a negative gap between revenues and
expenditures would begin in 2014-15 and grow to $7.7 million in 2017-18.
Actual consideration of the tradeoffs that would be required to balance
the budget if the half-cent sales tax is eliminated will be considered
beginning in January 2014, with decisions by the City Council in June 2014.
This schedule gives the Council and the community the opportunity to
consider this question separately and independently from the vast
number of policy questions to be considered as part of the 2013-15
Financial Plan Supplemental budget adoption for the 2014-15 Fiscal Year.
TOT Revenues. Revenues from transient occupancy tax (TOT) ended 2012-
13 up 6.7% from the prior year, reaching $5,572,000. This surpassed the
2007-08 pre-recession peak of $5,054,700 by over 10%. TOT has
benefitted from the extensive marketing efforts of the Tourism Business
Improvement District and the community promotions program. Having
achieved and surpassed the pre-recession peak, staff expects the rate of
growth to moderate some. The market has recently seen growth in both
room rates and the number of rooms available with the opening in May
2012 of the 84-room Hampton Inn, and the October 2012 opening of the
17-room Granada Hotel.
Current projections include the anticipated effect of Monterey Place (11
rooms) in 2014-15 and the Garden Street Terraces project (48 rooms)
beginning in 2015-16. Staff has revised the dates for receiving TOT from
these hotel properties to reflect the latest information on development
plans received by the Community Development Department.
Based on the analysis provided by Beacon Economics staff is projecting
net TOT revenue growth of:
Transient Occupancy Tax Growth Projections
2013-14 2014-15 2015-16 2016-17 2017-18
6.56% 2.6% 3.3% 5.65% 5.74%
Property Taxes. Property tax revenues in 2012-13 were $12.7 million,
which included a one-time refund from the County for previously paid
administrative fees totaling $620,000. Taking the one-time payment out
of the total, property taxes increased by 2% over the prior year, making
this the first increase following three years of small declines. Since its
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OVERVIEW
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2008-09 peak, property tax revenue declined 4.8%, far less than most
communities in California and the result of the revaluations of properties
by the County Assessor’s office based on market price declines. Based on
preliminary data from the Assessor, staff projects continued growth at a
modest rate as shown below.
Based on data provided by Beacon Economics and information obtained
from the County, staff projects the following through the forecast period:
Property Tax Growth Projections
2013-14 2014-15 2015-16 2016-17 2017-18
4.4% 1.5% 2.69% 3.0% 3.4%
The initial increase in 2013-14 reflects the lowering of property tax
administrative fees by the County, which will continue throughout the
forecast period.
Grants. The forecast does not reflect the receipt of any “competitive”
grant revenues over the next five years. However, our experience tells us
that we will undoubtedly be successful in obtaining grants, but these are
for restricted purposes, and are usually for new facilities, programs and
infrastructure, not the “maintenance-only” activities assumed in the
forecast.
Other “formula grant” programs like Community Development Block
Grants (CDBG) will help in achieving CIP goals. However, their use is highly
restricted by the granting agencies. Recent information received from San
Luis Obispo County indicates that reductions in the overall amount of
CDBG funds and in the amount allowed to be spent on the administration
of the grant are to be expected starting this year and continuing into the
future as adjustments are made based on the federal budget guidelines.
For these reasons, the forecast does not include any funding from these
sources.
Development Impact Fees. These are subject to changes in the
construction market, over which the City has no control. Depending upon
growth that occurs in the community over the next five years,
transportation impact fees will generate funds to help offset funding for
transportation improvements. However, these revenues are restricted
solely to funding improvements related to new development. On a much
smaller scale, the City also receives park, open space and housing in-lieu
fees, which are also restricted to funding improvements related to those
specific programs as they relate to new development. Because of these
restrictions they are not included in this forecast.
EXPENDITURE FORECAST
Operating Costs
Based on requests from Council, staff has broken down the forecast of
operating expenses between staffing and non-staffing costs. This is logical
because most City services, such as public safety and building permit
inspections, are provided by City staff. It is also helpful to organize
operating costs in this way because the factors driving staffing cost
increases, such as retirement costs, are completely different and warrant
much greater analysis than non-staffing operating costs.
Operating Costs - Staffing
Basic Compensation. Staffing costs have represented up to 80% of total
operating expenditures in the General Fund and have for several years
been the driving force behind increases in the costs of providing City
services. This has primarily been a function of rising retirement costs
driven by substantial increases in the employer contribution rates
required by the California Public Employees Retirement System, known as
CalPERS or simply PERS.
As mentioned above, the City Council included a projection of $2.6 million
in annualized reductions in personnel compensation in the General Fund
($3.1 million in all funds) as part of the 2011-13 Financial Plan. The plan
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OVERVIEW
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anticipated achieving $1.3 million in savings during the 2011-12 year and
the full $2.6 million in each year thereafter. Achieving the annual savings
goal required substantial negotiation with each bargaining unit and
ultimately resulted in a variety of phased in approaches to achieve the
desired reduction. The last phased-in reduction will occur in July 2014 and
the forecast reflects these phased in reductions through the 2014-15 fiscal
year.
Reductions in compensation were achieved in a variety of ways,
depending upon the bargaining unit. However, all employees will pay the
full Member contribution to PERS (8% or 9%) by July 2014. Further, none
of the labor agreements or compensation resolutions include any sort of
cost of living adjustments for salaries during the term (through the end of
December 2014 or 2015). Considering it will be at least four years that
most employee classifications have not been adjusted, staff forecasts that
compensation will increase at the assumed rate of inflation for the 2015-
16 year and beyond.
PERS Retirement Costs. Starting with the 2011-16 forecast, staff
projected fairly high increases in PERS employer contribution rates over
the forecast period based on the rapid rises seen in preceding years and
the knowledge that PERS was reviewing and would likely changing a
number of assumptions that would increase rates. Several of those
assumption changes have come to pass, most notably the change in the
rate of return on investments from 7.75% to 7.50%. Employer rates for
First Tier Safety Employees rose to 42.16% from 38.9% in 2011-12 while
the employer rate for First Tier Miscellaneous Employees rose to 24.7%
from 21.97% during that same period. The City recently received its PERS
Annual Valuation Report with the official rate for the First Tier Safety
Program set at 45.2% for 2014-15 and a projected rate of 47.2% for 2015-
16.The City has not yet received the Annual Valuation report for the
Miscellaneous Member Plan.
The rates for 2015-16 reflect the initial impact of the June PERS Board
action which approved a change to the funding horizon for plan losses
(smoothing) and rate adjustments tied to the assumptions related to
growth in plan membership, which is now being affected by the addition
of new benefit plan programs, which are described below. The Chief
Actuary at PERS has also indicated that the retirement board will be
considering rate changes related to the effect of lower mortality rates
among plan members and a change in the assumed rate of return on plan
assets as early as February 2014. If approved, these changes will also
begin to take effect in 2015-16. As part of the 2013-15 Financial Plan,
staff included as an item of expense, the assumption that in 2014-15, 1%
of payroll and in 2015-16, 2% of payroll would be self-assessed in all
operating funds and held as a deposit to be applied against the higher
PERS rates that will be realized in 2015-16. Overall, the forecast includes
the assumption that PERS rates will rise 2% in 2015-16. However, this does
not take into effect the savings that will be realized from the adoption of
the 2nd and 3rd Tier benefit programs, since PERS has not yet provided a
set of separate rates for each of these programs. Staff will return before
the City Council in April 2014 with an assessment of the city’s PERS liability
and options for paying down that liability as well as with a recap of any
further funding assumption changes that are adopted by the PERS board
in February 2014.
One of the City’s key cost containment objectives achieved through the
round of labor negotiations completed during 2012 was pension reform,
specifically the achievement of lower second tier pension formulas for City
employees that increase the “normal” retirement age and calculate
benefits on the average of three years of compensation instead of the
single highest year. The State also adopted new pension formulas through
the Public Employees Pension Reform Act (PEPRA) effective January 1,
2013. However, the PEPRA formulas only apply to new employees who
are also new to PERS.
Consequently all new personnel hired by the City will fall into either a
second tier, or third “PEPRA” tier , both of which are lower than the City’s
current retirement benefits. Future retirement costs will be impacted by
rates of turnover in the City’s workforce as new employees receiving
lower benefits with lower costs, replace current employees. Thus, the
savings to the City will increase over time. PERS provided estimated
employer contribution rates only for the City’s Police and Fire Second Tier
plans which are 20.6% and 21.8% respectively, compared to the current
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OVERVIEW
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First Tier rates for Police and Fire of 42.16%. The recently enacted Third
Tier programs created by the Public Employee’s Pension Reform Act
added rates for new members as follows: 12.25% for Police and Fire;
23.15% for Miscellaneous Members. The current rate for the
Miscellaneous First Tier plan is 24.68%.
Due to the uncertainty in hiring new employees and estimating which
ones will be new members and which will be joining the Second Tier
programs for Police and Fire, the projection does not reflect new hires’
cost using the rates for these programs. Instead, an estimate of cost
savings targeted at $119,000 has been established in the forecast until
more experience is gained with these programs and new rates have been
established for all of the new benefit tier programs.
Other Post Employment Benefit (OPEB) costs. Unlike many cities, the City
of San Luis Obispo faces a fairly stable cost outlook for its OPEB
obligations. Since 2008 the City pays its full Annual Required Contribution
(ARC) to the California Employers Retiree Benefit Trust (CERBT) run by
PERS to cover future retiree health benefits, and is rapidly reducing the
future liability for this benefit. Based on the latest biennial actuarial
report received during 2012, the City’s cost for the next two years will
increase from $536,000 to $558,000 and $576,000 respectively, with
future increases projected at a similar rate. Bartel and Associates will
begin preparation of the next actuarial study in the coming months.
Overall, the efforts undertaken to control staffing costs in the short- and
long-term appear to be successful. Ultimately, the savings from new
retirement tiers will depend on turnover as well as the contribution rates
required by PERS, but total staffing costs are projected to grow by less
than inflation during the forecast period.
Operating Costs – Non-Staffing
As the economy has stabilized and recovery taken hold, non-staffing
operating costs have begun to rise. City staff has been working hard to
identify areas where efficiencies can be made through improved work
processes, organizational studies, increased use of technology, etc. and
this effort will help moderate costs to some extent.
Accordingly, the forecast assumes non-staffing operating costs will
increase in each forecast year by the assumptions for population growth
and inflation combined.
Infrastructure and Facilities Maintenance
As discussed in the 2011-16 fiscal forecast, the estimated cost of
adequately maintaining, repairing or replacing existing General Fund
facilities, infrastructure and equipment is about $8.8 million annually.
This excludes any enhancements or “betterments.” To place this in
context, the average General Fund CIP expenditures for the last 15 years
have been about $4 million annually, and the average for the last two
years is a similar amount. The budget for the General Fund CIP was
reduced to $2.4 million for 2010-11 and increased to $3.7 million in 2011-
12.
For purposes of this Fiscal Forecast, staff started with the expenditure
levels adopted for 2013-15 which represents an initial increase in 2013-14
of 47%. This amount varies over the remaining years but increases
steadily until it reaches 12% over the 2012-13 amount. While these
numbers could and very likely will change through the adoption of future
Financial Plans, the previously approved plan is a logical place to start for
forecast purposes.
One of the Council’s Other Important Objectives for 2013-15 continues to
be increasing infrastructure maintenance and investment. This goal is
important to the City’s fiscal well-being, since failure to maintain critical
infrastructure often results in higher costs down the road. To accomplish
this, staff has proposed setting aside funding for major replacements, such
as fleet, information technology and major facilities. The forecast reflects
as much as $2 million per year being placed into these funds over the 5-
year forecast period. Although initial investments in these funds will not
cover the full cost of replacing these critical and expensive components, it
is a good start toward creating fiscally sustainable replacement programs.
Attachment 1
B3 - 12
OVERVIEW
- 8 -
Debt Service Costs
During 2011-12, the City successfully refinanced 2001 Series C lease
revenue bonds to achieve a lower interest rate and save $65,000 annually
in debt service costs to the General Fund. Staff and the City’s financial
advisor remain open to any potential opportunities for further savings
that may present themselves if interest rates remain low and other bond
refinancing options become available. The City has incurred no new
General Fund debt since 2011 but has included in the 2013-15 Financial
Plan, the lease purchase of a new fire engine and the financing of
replacement mobile data computers for the Police and Fire Departments
in order to leverage the city’s contribution to capital replacement. The
fire engine lease has been approved by the City Council in November and
the annual payments will be $117,000 per year starting in 2014-15. The
estimated payment for the mobile computers is $184,500 per year
starting in 2013-14. In addition, the forecast includes the debt payment
costs related to the Los Osos Valley Road Overcrossing construction. The
city has received a grant in excess of $15 million and will finance $8 million
to provide the remaining funds needed for construction. The annual
payment is estimated to be $371,000 starting in 2014-15 and increasing to
$425,000 per year thereafter.
SUMMARY
The City enters the 2013-15 Financial Planning period in substantially
better condition both long and short term than in previous financial plan
periods. However, it still faces many challenges as well as continued
economic uncertainty.
The City continues to have substantial advantages compared with many
communities in California due to:
1.Balanced budgets for both years in the 2013-15 Financial Plan and
reserves above minimum policy levels
2.Strong financial systems and procedures in place
3.Strong Council leadership
4.Committed and engaged citizens
5.Excellent organization and capable staff
6.Great tradition of responsible stewardship
This “civic infrastructure” is simply not in place in many other cities and it
will serve San Luis Obispo well in successfully meeting the fiscal challenges
ahead.
Moreover, the fact remains that in good times or bad, the fundamental
policy questions posed by the budget process are the same: of all the
things we want to do in making our community an even better place to
live, work and play, which are the most important? And what are the
resource trade-offs we have to make to do them?
Attachment 1
B3 - 13
SYNOPSIS OF MAJOR TRENDS
- 9 -
DEMOGRAPHIC TRENDS
1.Population and Housing. Population grows by 0.25% per year for
each of the years in the forecast.
2.Inflation. Grows by 2.4% in 2013-14 and 2.5% each fiscal year
through 2017-18.
EXPENDITURES
1.Operating Expenditures - Staffing. Uses the adopted budget for 2013-
14 and the preliminary 2014-15 budget values for those years. Using
2014-15 as the base for later years, staffing costs are estimated to
increase by the estimated inflation factor of 2.5% for the remainder of
the forecast period. Savings is estimated to be 2% per year.
2.Operating Expenditures – Non-Staffing. Uses the preliminary 2014-15
budget as the base and assumes increases (2.8%) based on combined
growth rates for population and inflation. Savings is estimated to be
2% per year except in the second year of each 2-year Financial Plan
cycle, when savings is estimated to be 2.25% based on recent
experience.
3.CIP Expenditures. Based on the five-year CIP program approved with
the 2013-15 Financial Plan. Steadily increasing expenses occur
through 2017-18.
4.Debt Service. The forecast includes current debt service obligations
and the estimated new debt service obligations called for in the 2013-
15 Financial Plan for financing of a fire engine, mobile computers for
public safety and the LOVR Overpass Construction grant match.
KEY REVENUES
Top Dozen General Fund Revenues
These “Top Dozen” sources account for about 95% of total projected
General Fund revenues. The estimated growth rates compare the forecast
amount to the Mid-Year budget estimate from 2012-13.
1.Sales Tax. Grows by rates projected by HdL and incorporates specific
factors such as the lapsing Airport Area Annexation Agreement and
estimated revenue generation from both the Chinatown and Garden
Street Terrace projects. Measure Y and Proposition 172 revenues are
projected to grow by the same factors.
2.Property Tax. As projected using information supplied by the County,
grows by 4.4% in 2013-14 with approximately half of that amount
resulting from lower property tax administration fees; by 1.5% in
2014-15; by 3.0% in later years.
3.Transient Occupancy Tax. Based on performance through the first 3
quarters of 2012-13, grows by 6.56% in 2013-14; by 2.6% in 2014-15;
by 3.3% in 2015-16; by 5.65% in 2016-17 due to projected
development in the downtown area from the Chinatown and Garden
Street Terrace projects; by 5.74% in 2017-18.
4.Utility Users Tax. Grows by 2.0% in 2013-14; by 2.5% in 2014-15; by
1.5% in 2015-16; by 2.8% in 2016-17 and 3.1% in 2017-18. Passage of
Measure D-12 which clarified the application of the tax and lowered
the percentage applicable to telecom services was projected to be
revenue neutral. Staff is analyzing the actual results seen in 2012-13
starting in April, when it was noted that an increase in revenues was
realized after the tax change took effect. The forecast is based in part
on estimates provided by Beacon Economics, starting with the 2015-
16 year.
Attachment 1
B3 - 14
SYNOPSIS OF MAJOR TRENDS
- 10 -
5.Property Tax in Lieu of Vehicle License Fees. Grows by the same rate
as property tax revenues throughout the forecast period.
6.Business Tax. Grows by 2.5% in 2013-14 and 2014-15; by 2.3% in
2015-16; by 2.6% in 2016-17 and 2.8% in 2017-18. The forecast is
based in part on estimates provided by Beacon Economics, starting
with the 2015-16 year.
7.Franchise Fees. Growth estimated using a combination of population
and inflation throughout the forecast period.
8.Gas Tax Subventions. Forecast using information provided by
California City Finance and recent local trends. Growth is being
monitored closely since the state’s implementation of the Proposition
42 replacement component is creating irregular patterns in the
allocation of these funds.
9.Development Review Fees. Decreased by 9.2% in 2013-14 in order to
eliminate the spike in revenues noted in 2012-13 which may not
reoccur. Grows by 4.99% in 2014-15; grows by 4% thereafter based on
Beacon Economics projection for building permit activity adjusted for
estimated timing of development review activity by Community
Development Department. Based on the continuing growth of these
revenues in the first part of 2013-14 in excess of anticipated levels,
staff will review these revenues with the City Council as part of the
mid-year update process.
10.Recreation Fees. Grows by population and inflation throughout the
forecast period.
11.Other Fees. Grows by population and inflation throughout the
forecast period.
12.Investments. Grows by 2.1% in 2013-14 and 1.5% each year
thereafter. This takes into account the lower yields earned on new
investments.
Special Revenue Assumptions
1.Proposition 42 Revenues. Beginning in 2010-11, the State replaced
Proposition 42 revenues with additional Gas Tax revenues pursuant to
Revenue & Taxation Code Section 7360. The City receives about
$500,000 annually from these transportation-restricted revenues
which are included in the Gas Tax estimates.
2.Mutual Aid Reimbursements. The forecast makes no assumptions for
the receipt of mutual aid revenues. This revenue results when Fire
personnel respond to significant events (usually wildland fires) for
which the City receives reimbursement from Federal or State sources.
Response to these types of events is volatile and difficult to predict.
While the City almost always receives some level of revenue from this
source each year, including substantial amounts in some years, there
are years where very little net revenue is received and it is unwise to
build the forecast based on these revenues.
3.State Budget Impacts. The forecast assumes no further adverse state
budget actions during the forecast period. With the adoption of the
2013-14 balanced budget and an unexpected surplus from 2012-13,
the state’s fiscal condition is improving but does not appear to require
additional assistance from local agencies.
4.Federal Fiscal Cliff – The State LAO states that Congress’ failure to
deal with the issues referred to as the “Fiscal Cliff” could result in
economic conditions differing materially from those forecast. This
means that “autopilot” actions referred to in the term “Fiscal Cliff”
could affect the economic growth upon which the forecast is based.
This does not account for unfunded Federal mandates that may trickle
down to the local level. There will be at least one more deadline by
which Congress must decide whether to increase the federal debt
limit, a process that has been complicated by the issues surrounding
the implementation of the Affordable Care Act.
Attachment 1
B3 - 15
SYNOPSIS OF MAJOR TRENDS
- 11 -
FUND BALANCE
The forecast assumes that the policy for maintaining fund balance at a
minimum of 20% of operating expenditures will be adhered to throughout
the forecast period. The fund balance has been updated based on the
unaudited 2012-13 results and has been used for the remaining periods
included in the 5-year forecast. Any amount above the policy level is one-
time funding and in accordance with Council adopted policy should be
used for one-time purposes (not for on-going operating programs). As
previously discussed, this document includes a forecast of revenue,
expenditures and changes in fund balance without Measure Y renewal. In
order to achieve the fund balance called for by the City’s reserve policy in
this scenario, significant reductions in expenditures would have to occur
to offset the loss of Measure Y revenue.
Attachment 1
B3 - 16
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e
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t
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r
e
s
17
1
,
4
0
0
17
4
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3
3
1
16
7
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2
5
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15
9
,
7
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16
7
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3
0
0
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7
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3
0
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171,933
176,747 181,696
In
t
e
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e
s
t
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s
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s
54
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9
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4
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329,000
334,000 349,000
Bo
n
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s
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h
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100,000
100,000 100,000
To
t
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l
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v
e
n
u
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s
52
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6
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62,241,69264,498,231
EX
P
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D
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& OT
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a
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34
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7
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5
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39,386,93940,466,645
Op
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r
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s
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No
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6
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14,046,90514,772,600
Tr
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2
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1
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81,200
81,200 81,200
Bo
n
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b
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3,009,051
2,999,103 2,816,219
Tr
a
n
s
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to
In
s
u
r
a
n
c
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Fu
n
d
‐
CJ
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t
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20,407
475,407 475,407
Ca
p
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623,951
623,951 823,951
Ca
p
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165,458
165,458 700,000
Ca
p
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100,000
100,000 450,000
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p
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3,585,625
3,622,425 3,897,425
To
t
a
l
Ex
p
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d
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t
u
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s
50
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2
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8
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57
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7
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61,501,38864,483,447
Re
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(U
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Ex
p
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740,304 14,784
FU
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OF
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12
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Re
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4,247,518
4,674,817 4,328,640
FO
R
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C
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12B3 - 17
GE
N
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13,996,869
6,965,483 281,685
En
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Fu
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Pr
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13
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0
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6
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,
2
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5
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RE
V
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N
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& OT
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Ta
x
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on
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12
,
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16,408,14517,064,471
Me
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s
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2
%
No
t
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20
1
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/
1
5
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Es
t
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s
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s
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5,
6
1
6
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3
0
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2
3
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4
6
8
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3
4
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0
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Sa
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s
Ta
x
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p
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s
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t
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n
17
2
27
1
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3
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28
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6
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7
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2
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0
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6
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293,138
301,932 314,009
Pr
o
p
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r
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x
8,
4
4
1
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1
0
0
8,
3
6
7
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8
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3
7
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2
0
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6
0
0
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7
4
0
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8
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8
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0
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9,111,745
9,385,096 9,704,190
Pr
o
p
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t
y
Ta
x
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li
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of
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3,
5
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1
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2
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6
4
0
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0
0
0
3,738,259
3,850,407 3,981,321
Tr
a
n
s
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n
t
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c
u
p
a
n
c
y
Ta
x
4,
8
4
4
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2
0
0
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2
2
2
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4
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3
9
5
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0
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5
7
2
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4
0
0
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7
4
9
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4
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0
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8
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0
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6,092,835
6,437,177 6,806,789
Ut
i
l
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t
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e
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x
4,
5
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3
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5
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0
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7
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6
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0
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9
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4,948,018
5,086,563 5,244,246
Fr
a
n
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h
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s
2,
3
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2
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1
0
0
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4
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3
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3
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2,619,588
2,692,936 2,768,339
Bu
s
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s
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x
1,
7
9
7
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8
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8
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2
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6
0
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2,203,318
2,260,604 2,323,901
Re
a
l
Pr
o
p
e
r
t
y
Tr
a
n
s
f
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r
Ta
x
13
3
,
7
0
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14
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18
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0
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25
6
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3
0
0
18
0
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0
0
0
18
0
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0
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0
183,600
187,272 192,516
Su
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& Gr
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2
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‐
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Ga
s
Ta
x
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/
T
B
I
D
Tr
a
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f
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r
s
In
1,
6
5
8
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4
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4
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7
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6
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1,407,680
1,407,680 1,407,680
Ot
h
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& Gr
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281,721
283,971 286,598
Se
r
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1,
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7
7
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2,
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2,340,653
2,434,279 2,531,650
Re
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1,562,627
1,606,381 1,651,359
Ot
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s
2,
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1,859,400
1,864,400 1,869,400
Ot
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17
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171,933
176,747 181,696
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329,000
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52
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52,878,511
54,817,59056,777,165
EX
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39,386,93940,466,645
Op
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Tr
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Tr
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Ca
p
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50
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(I
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)
20
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56
5
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5
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96
7
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1
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165,458
165,458 700,000
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p
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60
2
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7
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0
55
1
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4
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100,000
100,000 450,000
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p
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Al
l
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2,
1
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5,
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5
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9
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4
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3,585,625
3,622,425 3,897,425
To
t
a
l
Ex
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d
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t
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s
50
,
2
4
6
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8
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7
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57
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4
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55
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59
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2
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59,909,897
61,501,38864,483,447
Re
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Ov
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r
(U
n
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)
Ex
p
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d
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t
u
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s
1,
7
9
3
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8
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77
6
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5
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1,
4
7
9
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1
1
4
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7
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,
1
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8
,
8
0
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)
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,
6
0
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3
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)
(7,031,386)
(6,683,798) (7,706,282)
FU
N
D
BA
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OF
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12
,
9
0
7
,
9
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0
1
3
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6
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4
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4
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2
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2
8
1
,
4
4
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18
,
7
2
5
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9
6
9
1
6
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5
9
7
,
1
6
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13
,
9
9
6
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8
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6,965,483
281,685 (7,424,597)
Re
s
e
r
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e
@ 20
%
of
Op
e
r
a
t
i
n
g
Co
s
t
s
8,
9
4
2
,
8
0
0
9,
1
6
0
,
9
0
0
9,
9
3
0
,
7
0
0
10
,
0
7
2
,
9
8
0
9
,
9
1
2
,
2
7
3
10
,
1
3
4
,
7
0
0
10,468,925
10,781,93011,142,891
Ad
j
u
s
t
fo
r
En
c
u
m
b
r
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n
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e
/
C
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r
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y
o
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r
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D
e
b
t
Sv
c
Re
s
e
r
v
e
s
(2
,
8
8
2
,
0
7
2
)
(2
,
0
8
7
,
6
0
0
)
(2
,
0
8
7
,
6
0
0
)
(2
,
0
8
7
,
6
0
0
)
(2,087,600)
(2,087,600) (2,087,600)
Re
s
e
r
v
e
ab
o
v
e
/
(
b
e
l
o
w
)
po
l
i
c
y
le
v
e
l
3,
9
6
5
,
1
0
0
1,
6
4
1
,
4
2
8
2,
3
5
0
,
7
4
2
6,
5
6
5
,
3
8
9
4,
5
9
7
,
2
9
6
1,
7
7
4
,
5
6
9
(5,591,042)
(12,587,845) (20,655,088)
FO
R
E
C
A
S
T
13B3 - 18