HomeMy WebLinkAbout03-19-2019 Item 14 - Fiero Lane Clarion Ct Extension Agreement Department Name: Community Development
Cost Center: 4003
For Agenda of: March 19, 2019
Placement: Business Item
Estimated Time: 60 minutes
FROM: Michael Codron, Community Development Director
Prepared By: Dave Watson, Contract Planner
SUBJECT: AMEND THE 2015 MEMORANDUM OF AGREEMENT FOR ANNEXATION
OF THE FIERO LANE-CLARION COURT AREA AND EXTEND THE
INTERIM WATER AND SEWER SERVICE OUTSIDE USERS AGREEMENT
(850 FIERO LANE; ANNX-1166-2015)
RECOMMENDATION
1. Adopt a Resolution (Attachment A) approving a First Amendment (Attachment B, Exhibit
A) to the 2015 Memorandum of Agreement with Fiero Lane Water Company (FLWC)
(Attachment C) extending the task schedule for one year and clarifying the payment of
certain impact fees by FLWC for future development within the company’s service area
which occurs prior to annexation.
2. Authorize the Community Development Director and Utilities Director to adjust the MOA
schedule in coordination with FLWC, if necessary, to accommodate the Statewide
Community Infrastructure Program (SCIP) process, and review and approval of
infrastructure improvements.
REPORT-IN-BRIEF
In December 2015, the City Council approved Resolution No. 10678 to adopt a Memorandum of
Agreement (2015 MOA) (Attachment C) that established a mutual understanding between the
City and the FLWC1 to pursue a series of steps to ultimately annex these properties into the City.
Part of this understanding included agreement for the City to provide interim water and
wastewater services to the properties pending completion of the annexation process2.
The 2015 MOA identified 32 tasks to be completed, with annexation of the properties to be
completed by January 1, 2020. Initial tasks involved securing Local Agency Formation
Commission (LAFCO) approval to permit an “Outside Users Agreement” to extend City water
and wastewater services to the Fiero and Clarion properties presently located in the County. This
Outside Users Agreement has been in place since LAFCO’s approval on April 21, 2016 and is
set to expire at the end of March 2019. Extension of the MOA will allow the Outside Users
1 Representing the property owners within the proposed annexation boundary.
2 Codified in City Municipal Code §13.16.020.E. Water and Sewer Service for Private Use Outside City Limits,
Exceptions. Provision of interim water and/or sewer service to the Fiero Lane and Clarion Court annexation area, as
set forth in the memorandum of agreement between the city of San Luis Obispo and Fiero Lane Water Company and
adopted by city council Resolution No. 10678 (2015 Series). (Ord. 1627 § 2, 2015; Ord. 951 § 2, 1983)
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Agreement to be extended by LAFCO to facilitate a projected annexation target of 2020
(Council’s review is planned for May 2019).
Tasks completed to date include efforts to establish financing options for FLWC to fund City
fees and infrastructure improvements outlined in the 2015 MOA. This process has taken longer
than expected and has more recently involved a collaborative approach between the City and
County of San Luis Obispo to establish a Statewide Community Infrastructure Program (SCIP)
funding program3. Additional time is needed to complete the financing of needed infrastructure
and City fees, which are prerequisites for annexation of these properties to the City. Staff
anticipates the annexat ion request for Fiero Lane will be reviewed and considered by the City
Council as soon as May 2019, pending completion of a draft pre -annexation agreement.
Additional details to support these tasks have also been identified as staff has worked with the
FL WC on the pre-annexation process. These details include: fine tuning the scope of
infrastructure improvements and how they will be integrated into the City’s public works system;
revisions to the list of tasks to better reflect how this process has evolved over the last three
years; clarifications on the need for additional easements and access to a future lift station;
potential County funding for the future paving of Fiero Lane and how individual properties
continue to develop within the County during this pre-annexation timeframe. In addition to the
extension of the MOA, staff has addressed these issues in the proposed Resolution (Attachment
A) for Council consideration.
In addition, the proposed First Amendment to the MOA clarifies that FLWC will pay water and
sewer development impact fees in place at the time of County building permit issuance and
airport sewer pump stations fees for any additional properties which develop after the Effective
Date of the 2015 MOA but before annexation of the service area into the City.
DISCUSSION
Background and Policy Context
The 40-acre Fiero Lane-Clarion Court area has long been identified as an annexation area. The
City’s General Plan4 and Airport Area Specific Plan (AASP)5 (and associated Environmental
Impact Reports and analyses) have included this area when considering potential future growth
and associated demands for public infrastructure and transportation improvements.
Adoption of the 2015 MOA was the culmination of extensive negotiations between the City and
property owners over the manner in which annexation of this area could occur. The adoption of
the 2015 MOA set the City on a course of pursuing annexation and established a mutual
understanding of how the City would be reimbursed for costs incurred while processing the
annexation, identification of what infrastructure would be granted to the City upon annexation,
an analysis of the conditions of said infrastructure and various improvements to be completed to
3 For general information about SCIP, see here: http://cscda.org/Infrastructure-Finance-Programs/Statewide-
Community-Infrastructure-Program-(SCIP)
4 Land Use Element Policy 1.13.5 Annexation in Airport Area; Policy 7.7 City Annexation and Services; Policy 7.14
Growth Management (see: http://www.slocity.org/home/showdocument?id=6635)
5 AASP Chapter 9.1 (see: http://www.slocity.org/home/showdocument?id=4294)
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upgrade this infrastructure to City standards 6.
Steps Taken Towards Future Fiero and East Airport -Senn Glick Annexations
As outlined in the 2015 MOA (Attachment C, 2015 MOA Exhibit 5 “Annexation Task List and
Schedule”) Tasks 1-16 have been completed. These steps were directed at initiating the
annexation process and completing the interim service program.
Upon completion of 2015 MOA Task 16 (preparation of engineering assessment) in 2016, the
FLWC and City embarked on a series of tasks not identified in the 2015 MOA, including the
exploration of fina ncing options for paying fees and completing needed infrastructure. This
process led to several 2018 actions to implement a City-County SCIP funding program option for
the property owners (Attachment B, Exhibit A, Annexation Task List and Schedule [Amended
MOA Exhibit 5] Tasks 17-19). Under this program, similar to assessment district financing, an
engineer’s report will be prepared that will outline the costs of the needed improvements and
City fees and allocate those costs to individual property owners. At that point the property owner
may elect to pay their fair share of these costs or can take advantage of the SCIP process to issue
bonds, and essentially finance their share of improvements.
In addition to the Fiero Lane-Clarion Court annexation proposal, the City is in the process of
reviewing an application to annex the East Airport -Senn Glick area located approximately 0.5
mile south of Fiero Lane on the east side of Broad Street/State Route 227. Similar to the Fiero
Lane-Clarion Court area, the East Airport-Senn Glick annexation was anticipated in the City’s
General Plan and AASP. Based on the proximity of these annexation areas, these two proposals
are anticipated to be brought to the City Council for cumulative review potentially as soon as
May 2019. Consideration of these two proposed annexations is not included in the scope of
Council’s review at this time; however, staff found these updates regarding the status of the
annexation applications pertinent to Council’s consideration of the proposed First Amendment to
the 2015 MOA, as there has been progress towards annexation as outlined in the 2015 MOA,
which gives confidence to staff that provision of an outside user’s agreement would be
temporary, and would not be required beyond the one-year extensio n request.
Public Engagement
Before bringing forward this request for Council consideration, staff communicated and met with
representatives of the FLWC and LAFCO to gain consensus on the proposed First Amendment
to the 2015 MOA.
Analysis of the Extension of the MOA Schedule
As reflected in the proposed Resolution extending the MOA (Attachment A), a significant
number of tasks have been completed, directed at the target annexation of the Fiero Lane -Clarion
Court area in 2020. The 2015 MOA called for completion of infrastructure improvements by
September 2019 and annexation to be completed by January 2020. These proposed amendments
would extend those dates as followed: annexation completed by May 2020 ; infrastructure
improvements completed by July 2020.
6 Refer to Council Agenda Report dated December 1, 2015 for additional background information:
http://opengov.slocity.org/weblink/1/doc/53305/Page1.aspx
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The proposed First Amendment to the 2015 MOA schedule (Attachment B, Exhibit A,
Annexation Task List and Schedule) reverses the order of improvements and annexation. As
SCIP financing will provide the financial resources to guarantee the City fees and infras tructure
improvements will be completed, it is reasonable to complete annexation first, which would then
put City staff in the role of reviewing and approving final infrastructure improvement plans and
provide oversight and inspections as those improvement s are completed. Rather than have the
County provide that role while the lands remained in the County, reversing this sequence will
provide more hands-on oversight as these public improvements are completed, and then accepted
into the City public works system for management and maintenance. Part and parcel of this
extension is a parallel request to LAFCO to extend its Outside User Agreement provisions to
allow the added time discussed herein to be completed prior to annexation of the property to the
City.
Clarification on Easement for Future Lift Station
The following clarification is requested to Wastewater #7 in the 2015 MOA (Attachment C):
FLWC will provide a recorded permanent easement to the City of San Luis Obispo for the
property that currently serve s as the existing FLWC wastewater treatment system. This easement
area will be used for the construction of a City lift station to serve the area. The FLWC existing
electrical service will be provided to the City. Clear access will be provided to the easement area
from Fiero Lane.
This provision has been added to the First Amendment to the 2015 MOA (Attachment B, Exhibit
A, Required Infrastructure Improvements).
Continuing Development of Properties within the County Prior to City Annexation.
Since this annexation process began there has been a limited amount of activity on the part of
individual property owners within the annexation area to pursue development projects with the
County. When an application for land use and development permits are submitted t o the County,
a referral of the proposed project is sent to the City for comment. In the recent past this has
included meetings with the County and project applicant to review the details of each project,
and a discussion of City standards and development criteria that would otherwise be applicable
to each site (if annexed to the City) have been shared. Because this application process is fully
under the discretion of the County, City comments and suggestions are discretionary on the part
of the County. A good working relationship between the County and City has existed and will
continue to exist so long as the properties are awaiting annexation. To this extent staff will
continue to provide input to any development proposals received by the County prior to final
annexation.
For projects that are undergoing County permitting, it is reasonable to assume those property
owners will endeavor to complete their projects prior to annexation (targeted for May 2020). For
projects that are not completed and occupied prior to annexation, those property owners will
need to apply to the City following annexation to complete their projects. Projects that are
submitted to the City following annexation will be required to meet all City development
standards and policies that are applicable at the time of any such applications. In order to address
projects constructed prior to completion of the annexation process and provided with services
pursuant to the 2015 MOA and Outside Users Agreement , current water and sewer development
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impact fees would be paid to the City during this interim period of service.
Summary of Proposals for Council Action
Proposed for Council action are the following task adjustments to the 2015 MOA (Attachment B,
Exhibit A, Annexation Task List and Schedu le and Required Infrastructure Improvements):
1. Modify 2015 MOA and associated Annexation Task List and Schedule (Attachments A and
B) to clarify that for any additional properties that develop after the Effective Date of the
2015 MOA but before annexation of the service area into the City, payment of current water
and wastewater development impact fees are required, allow for adjustments to the Schedule,
and adjust the sequence of financing and annexation tasks, specifically Tasks 20 -21, 26-31,
to reflect t he use of the SCIP financing program.
2. Provide for completion of annexation following SCIP funding availability.
3. Provide for City review of plans, issuance of permits, and construction inspections for
infrastructure upgrades.
4. Establish the requirement for an easement for a future City lift station within the annexation
area.
5. Require a procedure for securing City Business Licenses for each established business in
place at the time of annexation.
Additionally, Council approval of the draft Resolution (Attachment A) would include the
following direction to staff during review of the proposed Fiero Lane -Clarion Court annexation:
1. Continue to review opportunities for County paving of Fiero Lane.
2. Continue responding to County land use/development permit applicatio n referrals for County
projects proposed prior to annexation.
CONCURRENCE
The proposed one-year extension of the work to be completed under the 2015 MOA has required
collaboration with all pertinent City departments (Utilities, Planning, Public Works, Engineering,
Fire, Building) and comments have been incorporated into this Council Agenda Report, MOA
schedule revisions, and recommended Resolution.
ENVIRONMENTAL REVIEW
During consideration of the 2015 MOA, the Council approved an Addendum 7 to the certified
Final Environmental Impact Report (FEIR) for the Airport Area and Margarita Area Specific
Plan8. The Addendum was prepared to address drought conditions occurring at the time, and
concluded that approval of the 2015 MOA would not result in any new ad verse impacts, increase
the severity of any impacts, or require the implementation of any new mitigation measures not
addressed or included in the certified Final EIR. The Council determined that approval of the
7 Refer to December 1, 2015 Council Agenda Report, Attachment H:
http://opengov.slocity.org/weblink/1/doc/53305/Page1.aspx
8 Final EIR available for review here: https://www.slocity.org/government/department-directory/community-
development/documents-online/environmental-review-documents/-folder-719
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2015 MOA did not meet the criteria for preparing a subsequent or supplemental EIR pursuant to
the California Environmental Quality Act (CEQA) Guidelines Section 15164.
The effect of the proposed First Amendment to the 2015 MOA will be to add approximately six
months to the completion of the annexat ion and associated infrastructure in 2020. Since 2015,
the FLWC and City staff have worked to complete the various steps called for under the 2015
MOA, and now find the need to extend the deadlines of the 2015 MOA to allow this process to
conclude. Consistent with Council approval of the Addendum in 2015, the proposed project:
consists of implementation of a project that was analyzed in the Airport Area and Margarita Area
Specific Plan FEIR; does not include any changes to existing land use designations or zoning;
and would not require any amendments to the Airport Area Specific Plan. No significantly
changed circumstances are proposed or have occurred within the subject area since 2015 that
would affect the analysis and conclusions of the certified FEIR and approved 2015 Addendum,
and approval of the extension would not result in any adverse physical environmental changes or
effects that would warrant additional environmental analysis or preparation of a subsequent EIR
pursuant to CEQA Guidelines Section 15164. Based on these facts, no further environmental
review is required.
FISCAL IMPACT
Fiscal Analysis
There is no change to the financial impact to the City associated with extending the completion
dates referenced under the adopted December 1, 2015 MOA. All financial impacts associated
with the annexation of the subject properties are addressed in the MOA and will continue in full
force and effect.
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A*
State
Federal
Fees
Other:
Total
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ALTERNATIVES
1. Continue the proposed First Amendment to the 2015 MOA pending additional information
required. Council may elect to continue this item to provide additional clarific ations or
information needed to render a decision. Should Council elect this alternative, direction
should be provided to staff as to the additional information needed.
2. Deny the proposed amendment and e xtension of the 2015 MOA. Council may elect not to
approve the proposed extension of the 2015 MOA, which would effectively stop pursuit of
the annexation. Denial is not recommended unless required findings are made, as this would
result in a cessation of water and sewer service to the Fiero Lane -Clarion Court area.
Attachments:
a - Draft Resolution
b - Exhibit A First Amendment to MOA
c - R-10678 - Authorizing MOA
d - Fiero Vicinity Map
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RESOLUTION NO. (2019 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING FIRST AMENDMENT TO
MEMORANDUM OF AGREEMENT REGARDING THE PROPOSED
ANNEXATION AND PROPERTY ALONG FIERO LANE AND CLARION
COURT AND THE PROVISION OF INTERIM WATER AND SEWER
SERVICE (850 FIERO LANE)
WHEREAS, on December 1, 2015 the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of considering a Memorandum of Agreement regarding the proposed
annexation of property along Fiero Lane and Clarion Court and the provision of interim water and
sewer service; and
WHEREAS, on December 1, 2015 the City Council adopted Resolution No. 10678
approving a Memorandum of Agreement (MOA) to pursue annexation of the subject properties
and to provide interim water and wastewat er services to said area pending completion of the
annexation process; and
WHEREAS, it has become necessary to extend the deadlines of the MOA to reflect
revisions to the work tasks identified therein and to allow sufficient additional time to complete
the annexation process. In addition, minor clarifications are needed to address the payment of
certain impact fees for new development which occurs after the effective date of the MOA and
annexation of the subject property; and
WHEREAS, there have been no changed circumstances or evidence that any new
impacts/conditions associated with the proposed project that were not otherwise previously
analyzed would result from extension of said Memorandum of Agreement ; and
WHEREAS, the City Council has duly considered all evidence, including testimony of the
applicant, interested parties, and the evaluation and recommendations by staff, presented at said
hearing; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. That approval of the First Amendment to the Memorandum of Agreement between the City
and the Fiero Lane Water Company is consistent with the Airport Area Specific Plan and
General Plan policies.
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Resolution No. ________ (2019 Series) Page 2
R _______
2. That approval of the First Amendment to the Memorandum of Agreement between the City
and the Fiero Lane Water Company adequately addresses the parameters of interim service
and establishes sufficient penalties/timeframes to ensure future annexation or
disconnection from City services.
3. During consideration of the 2015 MOA, the Council approved an Addendum to the
certified Final Environmental Impact Report (FEIR) for the Airport Area and Margarita
Area Specific Plan. The Council determined that approval of the 2015 MOA did not meet
the criteria for preparing a subsequent or supplemental EIR pursuant t o the California
Environmental Quality Act (CEQA) Guidelines Section 15164. Following this 2015
approval, the City Council certified the Final Environmental Impact for the Land Use and
Circulation Element Update, which analyzed the annexation of the Fiero Lane-Clarion
Court area as it relates to potential environmental impacts associated with build-out of the
General Plan. Based on these analyses, no significantly changed circumstances have
occurred within the subject area since 2015 that would affect the analysis and conclusions
of the approved 2015 Addendum, and approval of the extension would not result in any
adverse physical environmental changes or effects that would warrant additional
environmental analysis or preparation of a subsequent EIR pursuant to CEQA Guidelines
Section 15164, because the project does not include any elements not already addressed
the above-noted certified Environmental Impact Reports and Addendum. Based on these
facts, no further environmental review is required.
SECTION 2. Action. The City Council hereby approves and authorizes the Mayor to
execute First Amendment to the Memorandum of Agreement between the City and the Fiero Lane
Water Company attached hereto as Exhibit “A” and incorporated herein by this reference.
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Resolution No. ________ (2019 Series) Page 2
R _______
SECTION 3. Further adjustment to Schedule. The City Council hereby authorizes the
Community Development Director and Utilities Director to adjust the Schedule in coordination
with the FLWC, if necessary, to accommodate the Statewide Community Infrastructure Program
(SCIP) process, and review and approval of infrastructure improvements.
Upon motion of _______________________, seconded by _______________________ and on
the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ____ day of ___________, 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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1
FIRST AMENDMENT TO
MEMORANDUM OF AGREEMENT BY AND BETWEEN THE CITY OF
SAN LUIS OBISPO AND THE
FIERO LANE WATER COMPANY
This First Amendment to Memorandum of Agreement (“First Amendment”) is made and
entered into this _______ day of ___________, 2019 (the “Effective Date”) by and between the
City of San Luis Obispo, a municipal corporation and charter city, (hereinafter referred to as
“CITY”) and, Fiero Lane Water Company, a California corporation (hereinafter referred to as
“COMPANY”). CITY, and COMPANY shall hereinafter be referred to collectively as
“PARTIES”.
RECITALS
WHEREAS, on ___________, CITY and COMPANY entered into a Memorandum of
Agreement (“MOA”) which set forth certain terms and conditions regarding the possible
annexation of the COMPANY’s service area into the CITY, including, but not limited to, the
provision for interim water and sewer service and the upgrade and transfer of certain portions of
COMPANY’s water and sewer infrastructure to CITY. All capitalized terms not defined herein
shall have the same meaning as set forth in the MOA;
WHEREAS, by this First Amendment, the PARTIES wish to: (i) clarify what impacts fees
COMPANY owes for any further development within the Area after the Effective Date of the
MOA and Annexation of the Area into City; and (ii) adjust the Schedule in the MOA, as more
particularly described in Section 9 of the MOA.
NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements stated herein, the PARTIES agree as follows:
1. Water, Wastewater, and Recycled Water Development Impact Fees –
COMPANY agrees to pay any water and sewer development impact fees in place as of the
Effective Date of the MOA and the fees identified for the City’s replacement of the Airport sewer
pump station to serve the Area for any existing development and any future development within
the Area which receives a building permit from the County of San Luis Obispo prior to the date of
Annexation, in the amounts described in Exhibit “3 & 4” of the MOA. These fees, including any
impact fees may be financed by CITY through land based financing or other equivalent means
under terms outlined and negotiated during the financing of said impact fees. All impact fee
payment(s) shall be paid at time of Annexation.
2. Term and Termination of Agreement – The Schedule described in Section 9 of
the MOA is hereby amended as set forth in Exhibit “1” attached hereto and incorporated herein.
EXHIBIT A
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2
3. Incorporation of MOA. All provisions of the MOA, as amended hereby, shall
remain in full force and effect and unchanged, except as provided herein. If any provision of this
First Amendment conflicts with the MOA, the provisions of this First Amendment shall control.
4. Counterparts – This First Amendment may be executed in counterparts.
IN WITNESS WHEREOF, this First Amendment is executed on the date above
stated, at San Luis Obispo, California.
CITY OF SAN LUIS OBISPO
By:
__________________________________
Heidi Harmon, Mayor
ATTEST
By:
__________________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM
By:
__________________________________
J. Christine Dietrick, City Attorney
FIERO LANE WATER COMPANY
By:
__________________________________
Its:
EXHIBIT A
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Task No.DescriptionOriginal Completion Date per MOAActual Completion Date Proposed Completion DateComments1 Finalize Draft MOA ‐ staff level10/16/201510/16/20152 FLWC to organize written majority support for annexationComplete11/15/20153 FLWC Board approves and executes MOATBD12/11/20154 FLWC Submits Application for Annexation Complete3/31/20155PC Hearing #1CompleteNot applicable6City Council Hearing #1 (council approves and executes MOA, starting annexation and ok's pursuing Land based financing)12/1/201512/15/20157LAFCO application submittal #1Applicant (City) petitions LAFCO for approval of interim water and wastewater serviceDecember 20163/15/20168 SLO County approves use of gravity sewer main in Fiero Lane1/1/20167/1/2016This task was originally contemplated as a City/County function. The Company assisted in the resolution via a jointly signed letter after Company‐led negotiations.9FLWC provides City written confirmation from RWQCB that East Airport can either relocate the existing wastewater treatment facility operated by the COMPANY or install a new wastewater treatment facility on their premises.Complete2/23/201610 FLWC prepares plans and bonding estimate for interim service connection1/1/20165/18/2016Pre‐modeling for permanent connection was performed first prior to City endorsement of interim connection. 11FLWC posts bond or cash equivalent for removal of interim service connection, and initiates construction1/1/2016N/A, <$2500 so included in deposit12 City approves interim service plans (assuming 1 round of comments)1/15/20168/10/201613LAFCO Review Hearing #1 Interim Connection February/March 20164/21/201614Applicant Annexation Submittal to City(applicant provides all materials needed by application checklist and reviewing departments including mapped infrastructure and a model showing performance of proposed system once hooked up to City utilities.)on or before 4/1/2016Application and fee submitted on 3/31/2015. Additional materials provided per City request prior to interim service on 3/25/201615 Interim water and sewer service beginson or before 4/1/20168/26/201616FLWC completes Engineering Study for water and sewer infrastructure, which forms the basis of the SCIP Engineer's Report7/1/20163/25/2016Meter size analysis and water main configuration included, but confirmation needed on sewer connections from City gravity main / lift station project.At this point in the original schedule, annexation was to proceed to completion prior to securing funding, with the City taking the lead on the Proposition 218 process. The tasks below have been reoriented to accommodate the City's revised approach, and funding will be secured first, allowing annexation to occur following funding so the City can oversee the preparation of engineering plans and construction inspections for the infrastructure improvements. Annexation Task List and Schedule (Section 9)Fiero Lane Water Companyrevised 3‐6‐19Note: The schedule for uncompleted tasks requires timely action on the part of the FLWC, City, County, and CSDA (SCIP). As such, the dates are not within the sole control of FLWC and may need to be adjusted accordingly. EXHIBIT APacket Pg. 147Item 14
17 County to adopt SCIP/CSCDA Resolution, consenting use of the SCIP Program Not in original MOA9/11/201818 City to adopt SCIP/CSCDA Resolution, consenting use of the SCIP Program Not in original MOA11/13/201819 Formal application for SCIP funding for Fiero Lane annexationNot in original MOA11/26/201820City/Fiero Apply for LAFCO ExtensionNot in original MOAMarch 201921 LAFCO conducts public hearing on Outside User's Agreement Extension Not in original MOAMarch 2019 Requesting a 1‐year extension, to March 202022City confirms scope of sewer improvements necessary (if any) prior to implementation of new gravity sewer and lift stationNot in original MOA3/1/2019For inclusion in SCIP Engineer's Report. Company is also in discussions with SLO Co on street rehabilitation costs, though property‐owner funding will be assumed if necessary. 23 SCIP Staff prepares Engineer's Report for Proposition 218 ProcessNot in original MOA6/1/2019Timing to be confirmed by SCIP staff24 CSCDA/SCIP Resolution of IntentionNot in original MOAAugust 201925 SCIP Funding Confirmed and AvailableNot in original MOAOctober 201926City Council #2 Council approves and executes LAFCO Annexation, Service Authorization, AddendumMay 21, 2019City elected to defer annexation until after funding becomes available (April 2017)27LAFCO application submittal #2Applicant (City) formally petitions LAFCO for approval of annexationJune 201928LAFCO Review Hearing #2, Completing annexationAugust‐September 2019Final action by LAFCO to concide with 2019 Extension request29Preparation of detailed construction documents for permanent connections, street rehabilitation, and meter replacement (scope of sewer improvements to be confirmed)February 2020Includes City approval process30City files Boundary Map ‐ Secure State Board of Equalization approval ‐ Finalize annexationApril‐May 202031 Property Owners secure City Business LicensesApril‐June 202032Construction of water and sewer improvements is completed, along with items referenced in MOA Section 3d, new meters set, impact fees are paid.July 2020Construction begins after annexation approved and Funds become available33FLWC provides City parcel for construction of new lift station and easement for new gravity main in Fiero Lane.July 202034 If necessary, FLWC relocates wastewater treatment plant to East Airport areaTBDPending East Airport discussions, may not be necessaryEXHIBIT APacket Pg. 148Item 14
Exhibit 4
Required Infrastructure Improvements
Fiero Lane Water Company (FLWC) will perform a water and wastewater systems engineering
analysis and design to bring their facilities to CITY standards prior to CITY acceptance of those
facilities for CITY maintenance and operation. FLWC intends to complete the analysis prior to
annexation, so that costs can be established. Required, documents, submittals and improvements
identified to date are shown below. Additional documents, submittals, improvements or
modifications to the list of improvements may be required following completion of the analysis
and design and concurrence of the CITY and FLWC. The CITY reserves the right to determine
which infrastructure it will accept as CITY responsibility and which will remain the
responsibility of others. FLWC will be responsible for funding, design and construction of the
required improvements.
1.General Water and Wastewater: Map of the entire FLWC service area including
parcels and owners and size of buildings. Map shall include all infrastructure
servicing the Morabito Burke service area.
2.Annual and monthly records of water pumping, distribution and consumption and
wastewater generation, treatment and disposal.
3.All permits, records, agreements and reports required by regulatory agencies for
water and wastewater such as but not limited to; Regional Water Quality Control
Board, State Water Resources Control Board, EPA, County of San Luis Obispo,
California Department of Health.
4.All letters, reports and correspondence to regulatory agencies including but not
limited to; Notice of Violation(s), violation(s), fines and penalties, settlement
agreements, inspections, Notice of Intent, application for waste discharge.
5.All records of water and wastewater infrastructure installation.
6.All records of water and wastewater maintenance and capital replacement.
7.All water meter reads for the last 3 years.
8.Monthly water and wastewater service rates.
9.Map of all infrastructure, included but not limited to water mains, valves, water
meters, water boxes, fire hydrants, air vacs, service laterals, gravity sewers, manholes,
laterals.
10.List and map of record easements.
11.Draft schedule for all submittals and construction improvements prior to annexation.
Potable Water:
1.Record easements for CITY facilities on private property.
2.Pressure and leak test existing water mains that will become CITY facilities (Fiero Lane
only).
3.Public and private water mains shall be sized to meet fire flow requirements.
4.Decommission and dismantle of groundwater collection, treatment, and pumping
facilities.
5.Replace fire hydrants with CITY standard hydrants.
6.Replace all water meters. Meters shall be properly sized, accurate and meet City
standards.
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7. Water Services shall be upgraded to current City standard.
8. Backflow preventers shall be installed where recommended by County Cross Connection
Inspector.
9. Isolation valves shall be installed.
Wastewater:
1. Work with the CITY and County Airport to facilitate the CITY takeover of that portion
of the Airport gravity sewer line in Fiero Lane.
2. Replace or rehabilitate failing portion of the Airport gravity sewer line – Manhole M17-
15 to M17-8.
3. Fiero Lane System – Manhole M17-18 – cut open pipe to expose invert and access flow.
Manhole M17-18 to M17-19 – correct grade defects.
4. Tie over eight (8) sewer laterals on Fiero Lane to the Airport gravity sewer line or new
City gravity main in Fiero Lane, if available. Any necessary repairs to private laterals
shall be made by FLWC prior to tie over.
5. Abandon existing FLWC gravity main once laterals are tied over to deeper airport gravity
line.
6. The wastewater treatment system will be decommissioned, removed and left for
COMPANY to salvage or dispose in accordance with state standards.
7. Temporary and permanent easements shall be granted to the City for replacement of the
existing gravity main in Fiero Lane and the existing Airport sewer pump station. This
may include the site of the existing FLWC wastewater treatment system site, or another
suitable site. FLWC will provide recorded permanent easement to the City of San Luis
Obispo for the site of the existing FLWC wastewater treatment system for the
construction of a City lift station to serve the area. The FLWC existing electrical service
will be provided to the City. Clear access will be provided to the easement area from
Fiero Lane.
8. The leach fields behind Clarion Court will be abandoned in accordance with applicable
code after all Clarion properties are connected to the City wastewater collection system
via private gravity or private force main connections.
Storm Drainage Infrastructure:
1. The existing stormdrain within the existing County right-of-way is owned and maintained
by the County. The Company shall coordinate with the County to arrange for the
inspection and cleaning of the stormdrain system. In the event the County is unwilling to
perform the work prior to annexation, the City and Company shall work cooperatively to
arrange for an alternative means of cleaning with concurrence and permission from the
County.
Street Infrastructure:
1. The COMPANY will construct improvements and upgrades to Fiero Lane so as to bring
the street infrastructure into a “state of good repair”. For purposes of this requirement, the
definition of state of good repair includes:
a. Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
EXHIBIT A
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Item 14
b. Upgrade street crossings to meet Federal and City ADA ramp and crossing
standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
d. Remove and replace any damaged sections of sidewalk.
2. It is the intent of the agreement that Old Santa Fe Road south of the City/County
boundary line, located immediately south of the Santa Fe Bridge, will remain under
County jurisdiction after annexation of properties on Clarion Court. If as part of the
LAFCO process, the City is required to take all, or part, of Old Santa Fe Road under City
jurisdiction, the following requirements shall be required. The COMPANY will construct
improvements and upgrades to Old Santa Fe Road, that is to be annexed to the City, so as
to bring the street infrastructure into a “state of good repair”. For purposes of this
requirement, the definition of state of good repair includes:
a. Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
b. Upgrade street crossings at Clarion Court and the mini storage property to
meet Federal and City ADA ramp and crossing standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
The limits of required improvements begin at the south side of the existing bridge across the East
Fork of San Luis Creek and terminate at the cul-de-sac fronting the mini storage property. No
improvements to the bridge are proposed.
EXHIBIT A
Packet Pg. 151
Item 14
RESOLUTION NO. 10678 (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE A MEMORANDUM OF AGREEMENT
REGARDING THE PROPOSED ANNEXATION AND PROPERTY
ALONG FIERO LANE AND CLARION COURT AND THE PROVISION
OF INTERIM WATER AND SEWER SERVICE (850 FIERO LANE)
WHEREAS, on December 1, 2015, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis
Obispo, California, for the purpose of considering a Memorandum of Agreement regarding the
proposed annexation of property along Fiero Lane and Clarion Court and the provision of interim
water and sewer service; and
WHEREAS, an Addendum to the Environmental Impact Report for the Airport Area and
Margarita Area Specific Plans was prepared to review any new impacts/conditions associated
with the proposed project; and
WHEREAS, the City Council has duly considered all evidence, including testimony of
the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. That the Memorandum of Agreement between the City and the Fiero Lane Water
Company is consistent with the Airport Area Specific Plan and General Plan policies.
2. That the Memorandum of Agreement between the City and the Fiero Lane Water
Company adequately addresses the parameters of interim service and establishes
sufficient penalties/timeframes to ensure future annexation or disconnection from City
services.
3. That the Addendum to the Airport Area and Margarita Area Environmental Impact
Report (adopted August 23, 2005 and amended September 2, 2014) properly
characterizes the current drought conditions and provides substantial evidence that new
conditions have not occurred that would require preparation of a subsequent
Environmental Impact Report per CEQA Guidelines Sections 15162, 15164, and
15183.5.
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Item 14
Resolution No. 10678 ( 2015 Series) Page 2
SECTION 3. Action. The City Council hereby approves and authorizes the Mayor to
execute the Memorandum of Agreement between the City and the Fiero Lane Water Company
attached hereto as Exhibit "A" and incorporated herein by this reference.
Upon motion of Vice Mayor Carpenter, seconded by Council Member Christianson, and on the
following vote:
AYES: Council Members Ashbaugh, Christianson, and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this I" day of December 2015.
APPROVED AS TO FORM:
Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this I day of ),,1 t,044j ,J , J T-
m City Clerk
R 10678
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Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 3
MEMORANDUM OF AGREEMENT BY AND BETWEEN THE
CITY OF SAN LUIS OBISPO AND THE
FIERO LANE WATER COMPANY
r-7
This Memorandum of Agreement (MOA) is made and entered into this I day of
Qccnt, ...,r , 20_1 -5 (the "Effective Date") by and between the City of San Luis Obispo, a
municipal corporation and charter city, (hereinafter referred to as "CITY") and, Fiero Lane
Water Company, a California corporation (hereinafter referred to as "COMPANY"). CITY, and
COMPANY shall hereinafter be referred to collectively as "PARTIES".
RECITALS
WHEREAS, COMPANY is a mutual water company which provides water and sewer
service to property owners and their tenants within its service boundaries. A map depicting
COMPANY's service area and a listing of all properties served by COMPANY is attached
hereto as Exhibit 1, and incorporated herein by this reference; and
WHEREAS, COMPANY's service area is immediately adjacent to CITY's municipal
boundaries, but within CITY's urban reserve line and CITY's Airport Area Specific Plan
annexation area; and
WHEREAS, CITY's General Plan Water and Wastewater Element Policy No. 1.19.1A
of the Water and Wastewater Element and CITY's Municipal Code section 13.04.030 state that
the CITY shall be the only purveyor of water and wastewater services in the CITY's limits; and
WHEREAS, COMPANY and CITY have been negotiating the possible annexation of a
portion of COMPANY's service area into CITY's boundaries. A map depicting this area to be
possibly annexed is attached hereto as Exhibit 2 (the "Area") and incorporated herein by this
reference;
WHEREAS, by this MOA, COMPANY and CITY wish to set forth certain terms and
conditions regarding the anticipated annexation of the Area into the CITY, including, but
not limited to, the provision for interim water and sewer service and the upgrade and transfer of
certain portions of COMPANY's water and sewer infrastructure to CITY.
NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements stated herein, the PARTIES agree as follows:
1. Payment of Costs and Expenses — COMPANY agrees to pay for any and all
costs and expenses related to the annexation of the Area into CITY's municipal boundaries,
including, but not limited to, all of CITY's administrative fees, consultant fees, filing fees,
planning fees, engineering fees, attorney's fees, surveying fees, inspection fees, construction
Packet Pg. 154
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 4
costs, conditions of approval and mitigation measures related to the preparation and review of
this MOA, and all actions contemplated herein. COMPANY and CITY acknowledge and agree
that the list of permit fees attached hereto as Exhibit 3 and incorporated herein by this reference
is a fair and reasonable estimate of the anticipated permit fees associated with the Annexation.
COMPANY acknowledges and agrees that such estimate is subject to change. Within fifteen
15) days of the Effective Date of this MOA, COMPANY shall deposit the sum of twenty five
thousand dollars ($25,000) (the "Deposit") with CITY. Such amount may be commingled with
CITY's other funds. CITY may deduct its expenses from such deposit and shall provide
COMPANY with regular invoices. COMPANY shall have thirty (30) days from the date of such
invoice to contest the expenses and charges so described. Whenever the Deposit declines to
5,000 or less, or is insufficient to cover any anticipated costs or expenses, CITY may request an
additional deposit in an amount determined by CITY in its sole and absolute discretion.
COMPANY's failure to timely deposit such funds shall be considered a material breach of this
MOA, in which case CITY may cease any further action without any liability whatsoever.
2. Annexation of Area — Subject to the terms and conditions herein, after receiving
a written request from the COMPANY, the CITY shall hold a public hearing for the
consideration of the annexation request, and if authorized by the City Council, City shall file an
application with the San Luis Obispo Local Agency Formation Commission ("LAFCO") to
annex the Area into the CITY's municipal boundaries (the "Annexation"). COMPANY shall
provide any and all information, plans (including a plan for services), documents or signatures
needed for such application. COMPANY acknowledges and agrees that such annexation
proceedings are subject to the discretion of LAFCO, other affected agencies and protest
proceedings, and that CITY makes no guaranties, representations or warranties whatsoever
regarding any outcome of the Annexation or related process. COMPANY further acknowledges
that the Annexation is subject to environmental review pursuant to the California Environmental
Quality Act and potentially subject to certain conditions of approval and mitigation measures.
Upon annexation of the Area into the CITY's municipal boundaries (i.e. effective date of the
certificate of completion) and CITY's acceptance of the water and sewer infrastructure as set
forth in Section 3.d below, COMPANY shall forever cease operating within the Area so
annexed.
3. COMPANY Infrastructure -
a. Existing Conditions of COMPANY Infrastructure — COMPANY acknowledges
and agrees that much of the existing water and wastewater infrastructure owned
by COMPANY being used to provide water and wastewater service to the Area
does not currently meet CITY standards for acceptance by the CITY following
Annexation. COMPANY acknowledges that the existing stormdrain infrastructure
is currently owned and maintained by the County and appears to be acceptable,
subject to the completion of specific stormdrain improvements by the County,
including cleaning and final inspection of the infrastructure prior to Annexation.
b. Required Improvements — Prior to Annexation of the Area into CITY and CITY's
provision of water and sewer to the Area, COMPANY shall upgrade the
COMPANY's water and sewer infrastructure to City standards as identified in
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Resolution No. 10678 (2015 Series)
EXHIBIT A Page 5
Exhibit 4 attached hereto and incorporated herein by this reference. In addition,
COMPANY shall coordinate with the County to arrange for the inspection and
cleaning of the existing stormdrain by the County. COMPANY acknowledges and
agrees that additional improvements to COMPANY's water and sewer
infrastructure may be needed as later determined by CITY in its sole and absolute
discretion. COMPANY further acknowledges and agrees that upon completion of
the required improvements to the water and sewer infrastructure, COMPANY
shall repair the affected right of way in its entirety to a state of good repair as
determined by the CITY's Director of Public Works. COMPANY hereby
expressly waives Labor Code section 1781 and hereby releases, indemnifies and
holds harmless CITY from and against any claim that the infrastructure
improvements required herein are subject to the payment of prevailing wages.
c. Responsibilities of COMPANY for Upgrades — COMPANY shall be solely
responsible for all aspects of completing the required infrastructure upgrades
including, but not limited to, financing, design, permitting, bidding and
construction and inspection. CITY will consider the necessary actions to establish
land based funding opportunities or other related funding mechanisms in order to
finance those public improvements that the COMPANY elects not to self -fund,
subject to property owner approval and public hearing requirements as required
by law.
d. Transfer of Infrastructure and Facilities — Upon completion of all infrastructure
upgrades, COMPANY shall provide CITY with:
i. A complete set of record drawings prepared by a registered engineer
depicting the actual conditions and the locations of the water and sewer
facilities proposed to be transferred to CITY;
ii. All documents showing all of COMPANY's easements and real property
located within the Area; and
iii. Executed instruments, which shall be in a form or forms to the satisfaction
of the City Attorney, transferring all water and sewer infrastructure, and
related easements and real property within the Area to the CITY.
COMPANY acknowledges that such transfer is subject to CITY accepting
such infrastructure, easement and real property. COMPANY agrees to
furnish CITY with a title insurance policy showing title to any easement or
real property to be transferred in the name of CITY with coverage in the
amount of the fair market value the property or its replacement value, as
applicable.
COMPANY acknowledges and agrees that unless and until its water and sewer infrastructure are
accepted by CITY, COMPANY shall be solely responsible for the operation and maintenance of
such infrastructure. The CITY reserves the right to determine which infrastructure it will accept
as CITY responsibility and which will remain the responsibility of COMPANY.
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Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 6
4. Responsibilities of CITY — Upon final acceptance of said infrastructure and
improvements, CITY shall be responsible for operation and maintenance of the accepted water
and sewer infrastructure and the provision of water and wastewater service to the Area duly
annexed and served by such infrastructure.
5. Interim Water and Sewer Service Provision —
a. Interim Hook -Up - COMPANY represents that it has received written
confirmation of support for annexation from property owners within its service
area that represent more than 50% of the assessed value of the land within the
proposed annexation boundary. As such, COMPANY anticipates the successful
completion of Annexation. CITY and COMPANY agree that due to the time
required to complete the Annexation process, including the design and
construction of needed improvements to the infrastructure for final acceptance by
CITY, it is necessary to connect infrastructure owned and operated by
COMPANY to City's system for interim water and sewer service to properties
served by COMPANY while the annexation process and infrastructure
improvements are being completed (the "Interim Service Period"). Prior to
providing interim sewer service, the COMPANY must demonstrate to the
satisfaction of the City's Utilities Director, separation of the east and west side
wastewater flow. Prior to providing such interim water and sewer service
however, CITY shall, at COMPANY's sole expense, submit an application with
LAFCO pursuant to Government Code Section 56133 to provide new services
outside its jurisdictional boundaries. CITY and COMPANY understand and agree
that approval for such extraterritorial service is within the discretion of LAFCO.
COMPANY further acknowledges and agrees that CITY's obligation to provide
interim water or sewer service is subject to amendment of Chapter 13.16 of the
CITY's Municipal Code in order to allow water and sewer service outside of the
City's limits. Should LAFCO deny such application or should CITY's Municipal
Code not be so amended, CITY shall have no obligation whatsoever to provide
COMPANY with water or sewer service prior to Annexation. COMPANY further
acknowledges and agrees that CITY shall have no obligation whatsoever to
provide interim water and/or sewer service under this Section 5 unless and until
COMPANY provides CITY with all necessary documents for the City's
Annexation application to initiate proceedings for the annexation of the Area into
the City's boundaries. During the Interim Service Period, COMPANY shall
continue to provide its customers with water and sewer service and shall retain full
and absolute responsibility for operations, maintenance and repair of all
facilities up to the point of connection of COMPANY facilities to CITY's
system. Connection to the CITY's water and sewer systems will require approval
of final connection plans by the CITY's Utilities and Public Works Directors. All
discharges into the City's sewer system shall comply with all CITY regulations;
the CITY reserves the right to prohibit any discharge into the CITY's sewer
system from COMPANY's service area during the Interim Service Period.
b. Prior to interim hook-up, COMPANY shall provide CITY with written
confirmation from the Central Coast Regional Water Quality Control Board
RWQCB") that East Airport, also known as the Morabito-Burke and Senn -
Glick commercial developments, can either relocate the existing wastewater
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Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 7
treatment facility operated by the COMPANY or install a new wastewater
treatment facility on their premises. At a minimum, the written confirmation must
specifically reference the Fiero Lane Water Company, Wastewater Discharge and
Water Recycling Requirements Order NO. R3-2004-0154, Morabito-Burke and
Senn -Glick commercial developments or East Airport, permission to relocate and
site the Fiero Lane Water Company treatment facility or site a new wastewater
treatment facility at Morabito-Burke and Senn -Glick commercial developments,
and be signed by the RWQCB's Executive Officer or his designee. In addition, if
the facility is not relocated prior to Annexation, the COMPANY shall also
provide to City written confirmation and documentation as required by CITY that
COMPANY is technically and financially capable of the relocation of the facility
to the location and in accordance with the RWQB's requirements. Financial
documentation can include a bond, letter or guarantee or other documentation
acceptable to CITY.
c. During the Interim Service Period, the CITY will be designing and constructing a
replacement for the existing sewer gravity main in Fiero Lane and the Airport
sewer pump station that will serve the Area. The CITY will work with
COMPANY to identify locations for these replacement facilities and COMPANY
agrees to grant easements to the CITY for both the pump station and gravity main
in the location to be determined later as otherwise reasonably required by CITY.
d. Payment for Service - COMPANY shall be responsible for paying any and all
rates and fees associated with the provision of water or sewer service during the
Interim Service Period as described in this Section until transfer of COMPANY
sewer and water infrastructure to CITY is complete and CITY service to
individual properties served by COMPANY is established.
i. Upon connection of COMPANY to CITY water service and cessation of
COMPANY ( well) water service to the properties listed in Exhibit 1,
COMPANY shall be billed for wastewater service based upon metered
water use consistent with CITY practices for billing non-residential
customers in the City.
ii. During the Interim Service Period, water service rates shall be at normal
rates in effect at the time of service unless the COMPANY is not in
compliance with the Schedule (defined below) or is otherwise in default of
any term or condition of this MOA, in which case such rates shall be two
times the normal rate in effect at the time of service or as determined by
the CITY's Director of Utilities.
iii. During the Interim Service Period, sewer service rates shall be at normal
rates in effect at the time of service unless the COMPANY is not in
compliance with the Schedule or is otherwise in default of any term or
condition of this MOA, in which case such rates shall be two times the
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Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 8
normal rate in effect at the time of service or as determined by the CITY's
Director of Utilities.
6. Improvement and Performance Bond — Prior to COMPANY connecting to
CITY for interim water and sewer service as set forth in Section 5.a above, COMPANY shall, at
COMPANY's sole expense, obtain improvement bonds or other similar assurances in favor of
CITY guaranteeing the costs and expenses for the following:
a. The processing of the Annexation application; and
b. The removal of the water and sewer improvements for interim water and sewer
service and restoration of the affected area.
The amount of each of the bonds shall be determined by the CITY's Director of Utilities, in his
or her sole and absolute discretion. The CITY reserves the right to increase the amount of such
bonds in the event the anticipated costs and expenses to perform the work guaranteed by such
bond are greater than the amount so bonded.
7. Water, Wastewater, and Recycled Water Development Impact Fees —
a. Water and Wastewater Development Impact Fees. Subject to the terms and
conditions herein, COMPANY shall pay the water and sewer development impact
fees in place as of the Effective Date and the fees identified for the City's
replacement of the Airport sewer pump station to serve the Area, which are more
particularly described in Exhibit "3 & 4" attached hereto and incorporated herein.
These fees may be financed by CITY through land based financing or other
equivalent means under terms outlined and negotiated during the financing of said
impact fees. The impact fee payment(s) shall be paid at time of Annexation.
b. Recycled Water Development Impact Fee. Subject to the terms and conditions
herein, at the time of Annexation, COMPANY shall pay CITY a recycled water
development impact fee, the amount of which shall the lesser of:
i. The recycled water portion of the water impact fee at the time of
Annexation based on an analysis of the equitable portion of the recycled
water improvements assigned to the proposed Annexation Area, but not to
exceed $80,000; or
ii. The cost of installation, as determined by CITY's Engineer, at the time of
Annexation for a 10 inch ductile iron recycled water line fronting 4211
Broad, 850 Fiero Lane, and 845 Fiero, in Broad Street (approximately 830
feet).
8. Existing and Future Development. Upon annexation, the PROPERTY may be
further developed consistent with CITY policies, rules and regulations including, but not limited
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Resolution No. 10678 ( 2015 Series)
EXHIBIT A Page 9
to, the General Plan, the Airport Area Specific Plan (RASP), and other provisions of the
Municipal Code and state law.
a. Non -Conforming Uses. COMPANY recognizes that certain existing uses within
the Area are not permitted or may be conditionally permitted under CITY's
zoning regulations and land use policies and that such non -conforming uses are
entitled to remain and continue pursuant to CITY's non -conforming land use
regulations. Non -conforming uses existing as of the date of Annexation shall be
allowed to relocate within the same parcel as of the date of Annexation CITY will
endeavor to integrate such non -conforming uses into, and to provide for such uses
within the Area in the next revision of the CITY's zoning regulations and Airport
Area Specific Plan ("AASP").
b. Expansion of Existing Uses. Nothing herein is intended to limit the addition or
expansion of otherwise conditionally allowable uses, consistent with existing City
procedures for review and approval of such additions and/or expansions.
c. Non -Conforming Structures. CITY recognizes that certain structures within the
Area lawfully existing as of the date of Annexation are legal non -conforming
structures and may remain pursuant to CITY's non -conforming structure
regulations. CITY acknowledges that such regulations allow the right to maintain
and make reasonable repairs to such structures and to replace the structures
consistent with CITY regulations. Changes to structural elements (with the proper.
CITY permit), interior partitions or other nonstructural improvements and repair
may be made to any of the structure.
9. Term and Termination of Agreement - This MOA shall become effective as of
the Effective Date and shall remain in effect until the Area is annexed and the water and sewer
infrastructure are accepted by CITY pursuant to Section 3 above, unless sooner terminated as
provided herein. CITY and COMPANY acknowledge and agree that the Annexation Task List
and Schedule (the "Schedule") attached hereto as Exhibit "5" and incorporated herein by this
reference, represents a fair and reasonable schedule for performance of the Annexation and other
tasks and obligations as contemplated herein. This MOA may be terminated by either party upon
the other party's failure to substantially comply with the benchmarks set forth in the Schedule
provided that, prior to such termination, the party seeking to terminate provides written notice of
such failure to comply and a reasonable opportunity to cure such failure. CITY and COMPANY
acknowledge and agree that the Schedule shall be adjusted to account for delays which are out of
the reasonable control of either CITY or COMPANY. CITY and COMPANY agree that time is
of the essence in completing the work identified in Exhibit 5 of this MOA. COMPANY and
CITY agree that all upgrades to the water and sewer infrastructure and right of way as described
in Section 3 above shall be completed to CITY's satisfaction prior to Annexation of the Area into
CITY's municipal boundaries. This MOA may be terminated by CITY without prior notice in
the event of bankruptcy or insolvency of COMPANY. This MOA may also be terminated by
CITY upon successful protest of the Annexation.
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Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
10. Liability and Indemnification —
Page 10
a. Release of Liability — COMPANY acknowledges and agrees that CITY is not, and
shall not be, in any way liable for any damages or injuries that may be sustained
as the result of the CITY's performance of this MOA.
b. Indemnification - To the fullest extent provided by law, COMPANY shall
indemnify, defend (with counsel reasonably acceptable to CITY) and hold
harmless CITY, its officials, employees, agents and contractors from and against
any and all liability, costs, expenses (including attorney's fees), demands,
lawsuits, arising from or related this MOA, CITY's provision of water or sewer
service to COMPANY and COMPANY's customers during the Interim Service
Period or the annexation of COMPANY's the Area to CITY. Notwithstanding the
foregoing, COMPANY shall have no duty to indemnify or defend CITY for the
proven gross negligence or willful misconduct of CITY.
11. Insurance - During the term of this MOA, COMPANY shall have in full force
and effect a commercial general liability insurance policy covering personal injury and property
damage in the minimum coverage amounts of $1,000,000 per occurrence. City shall be named an
additional insured under said policy.
12. Successors, Heirs and Assigns - This MOA shall bind and inure to the benefit of
the heirs, successors, assigns and personal representatives of the PARTIES. This MOA may not
be assigned without the prior written approval of the PARTIES.
13. Amendment and Modification - This MOA may be amended, extended, or
canceled at any time by mutual consent of the PARTIES or their successors in interest.
14. Notices — Unless otherwise specified herein, any notice which any party may or is
required to give shall be given by personal service or by depositing such notice with the U.S.
Postal Service, postage pre -paid, to the mailing address given below, or at such other place as
may be designated by the party in writing from time to time. Notice shall be effective upon the
date of personal delivery or 3 days after date of mailing.
If to City: City of San Luis Obispo
Attn: Community Development Director
919 Palm Street
San Luis Obispo, CA 93401
With copy to: City of San Luis Obispo
Attn: City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to COMPANY: Fiero Lane Water Company
address] A -ru . F ek, Kkvr, , CK
S Lam.• s Ob sp , ot3,ob
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Item 14
Resolution No. 10678 ( 2015 Series)
EXHIBIT A Page 11
15. Implied Obligations — COMPANY and CITY shall reasonably cooperate to
achieve the purposes of this MOA, and shall execute or provide as requested such other
documents and information as are reasonably necessary to achieve those purposes.
16. Construction — When the context of any provision requires it, the singular shall
be held to include the plural, and the masculine shall be held to include the feminine gender.
Should any provisions of this MOA require judicial interpretation, it is understood by the
PARTIES and agreed that a court interpreting or construing same shall not apply a presumption
that the terms hereof shall be more strictly construed against one party by reason of the rule of
construction that the document is to be constructed more strictly against the party who prepared
it sine the parties agree that both have participated in the preparation of this document with the
assistance of counsel.
17. Authority to Sign and Binding Effect - The parties executing this MOA
personally warrant that they have the full authority to enter into this MOA on behalf of the
agency or entity for which they are signing, and that said agency or entity will be legally bound
to the MOA by their signature hereto.
18. Counterparts — This MOA may be executed in counterparts.
IN WITNESS WHEREOF, this Memorandum of Agreement is executed on the date
above stated, at San Luis Obispo, California.
CITY OF SAN LUIS OBISPO
By: _ 'Iq?11 " , - - —
Jan M Mayor
ATTEST
Jon Interim City Clerk
AS TO
ristine Dietrick, City Attorney
FIERO LANE WATER COMPANY
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Item 14
Resolution No. 10678'(2015 Ser'
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Exhibit 1
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MOA Exhibit 1
Resolution No. 10678 (2015 Series)
EXHIBIT A Page 13
Properties Served by FLWC (West Side of Broad Street)
APN APN APN APN
076-411-054 076-413-035 076-414-023 076-414-047
076-415-007 076-413-027 076-414-021 076-414-052
076-415-006 076-413-011 076-414-007 076-414-045
076-415-012 076-413-002 076-414-039 076-414-030
076-415-013 076-413-016 076-400-010 076-414-049
076-415-015 076-413-037 076-413-023 076-414-029
076-415-009 076-414-032 076-413-009 076-400-004
076-415-014 076-413-026 076-413-013 076-414-031
076-414-009 076-413-024 076-413-003 076-414-051
076-412-001 076-413-034 076-413-019 076-414-050
076-414-016 076-400-007 076-400-005 076-415-005
076-414-012 076-400-006 076-413-020 076-415-008
076-414-013 076-413-018 076-414-041 076-412- 007
076-414-014 076-413-022 076-414-037 076-412- 002
076-414-011 076-413- 032 076-414-038 076-412-008
076-414-015 076-413-005 076-414-042 076-411-039
076-412-009 076-413-007 076-414-043 076-415-010
076-414-010 076-413-006 076-414-036 076-415-011
076-415-016 076-413-008 076-414-034 076-400-013
076-414-006 076-413-015 076-414-033 076-401-043
076-400-014 076-400-011 076-414-025 076-401-032
076-414-022 076-413-031 076-414-026 076-401-065
076-414-019 076-413-030 076-414-054 076-411-055
076-413-010 076-400-012 076-414-027 076-415-003
076-414-017 076-400-003 076-414-053 076-415-004
076-414-008 076-413-028 076-414-028 076-415-001
076-414-003 076-413-012 076-413-033 076-415-002
076-412-003 076-413-021 076-414-024 076-401-064
076-413-004 076-413-001 076-414-001 076-414-055
076-414-004 076-414-018 076-414-044 076-413-038
076-413-029 076-414-020 076-414-040 076-400-001
076-413-017 076-413-036 076-414-035 076-415-017
076-413-014 076-414-005 076-414-048
076-413-025 076-414-002 076-414-046
Packet Pg. 164
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
Properties Served by FLWC (West Side of Broad Street)
APN
076-511-040
076-512-008
076-512-030
076-511-025
076-512-024
076-512-033
076-512-023
076-512-022
076-512-004
076-512-025
076-512-026
076-512-001
076-512-002
076-512-003
076-512-006
076-512-005
076-512-009
076-512-017
076-512-028
076-512-015
076-512-011
076-512-010
076-512-012
076-512-007
076-512-029
076-512-032
076-512-031
076-511-038
076-512-034
076-511-039
076-511-041
076-512-035
076-512-036
MOA Exhibit 1
Page 14
Packet Pg. 165
Item 14
NADA FYninit 9
Packet Pg. 166
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
MOA Exhibit 3
Page 16
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Packet Pg. 167
Item 14
MOA Exhibit 4
Resolution No. 10678 ( 2015 Series)
EXHIBIT A Page 17
Reguired Infrastructure Improvements
Fiero Lane Water Company (FLWC) will perform a water and wastewater systems engineering
analysis and design to bring their facilities to CITY standards prior to CITY acceptance of those
facilities for CITY maintenance and operation. FLWC intends to complete the analysis prior to
annexation, so that costs can be established. Required, documents, submittals and improvements
identified to date are shown below. Additional documents, submittals, improvements or
modifications to the list of improvements may be required following completion of the analysis
and design and concurrence of the CITY and FLWC. The CITY reserves the right to determine
which infrastructure it will accept as CITY responsibility and which will remain the
responsibility of others. FLWC will be responsible for funding, design and construction of the
required improvements.
1. General Water and Wastewater: Map of the entire FLWC service area including
parcels and owners and size of buildings. Map shall include all infrastructure
servicing the Morabito Burke service area.
2. Annual and monthly records of water pumping, distribution and consumption and
wastewater generation, treatment and disposal.
3. All permits, records, agreements and reports required by regulatory agencies for
water and wastewater such as but not limited to; Regional Water Quality Control
Board, State Water Resources Control Board, EPA, County of San Luis Obispo,
California Department of Health.
4. All letters, reports and correspondence to regulatory agencies including but not
limited to; Notice of Violation(s), violation(s), fines and penalties, settlement
agreements, inspections, Notice of Intent, application for waste discharge.
5. All records of water and wastewater infrastructure installation.
6. All records of water and wastewater maintenance and capital replacement.
7. All water meter reads for the last 3 years.
8. Monthly water and wastewater service rates.
9. Map of all infrastructure, included but not limited to water mains, valves, water
meters, water boxes, fire hydrants, air vacs, service laterals, gravity sewers, manholes,
laterals.
10. List and map of record easements.
11. Draft schedule for all submittals and construction improvements prior to annexation.
Potable Water:
1. Record easements for CITY facilities on private property.
2. Pressure and leak test existing water mains that will become CITY facilities (Fiero Lane
only).
3. Public and private water mains shall be sized to meet fire flow requirements.
4. Decommission and dismantle of groundwater collection, treatment, and pumping
facilities.
5. Replace fire hydrants with CITY standard hydrants.
Packet Pg. 168
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
MOA Exhibit 4
Page 18
6. Replace all water meters. Meters shall be properly sized, accurate and meet City
standards.
7. Water Services shall be upgraded to current City standard.
8. Backflow preventers shall be installed where recommended by County Cross Connection
Inspector.
9. Isolation valves shall be installed.
Wastewater:
1. Work with the CITY and County Airport to facilitate the CITY takeover of that portion
of the Airport gravity sewer line in Fiero Lane.
2. Replace or rehabilitate failing portion of the Airport gravity sewer line — Manhole M17-
15 to M 17-8.
3. Fiero Lane System — Manhole M17-18 — cut open pipe to expose invert and access flow.
Manhole M 17-18 to M 17- 19 — correct grade defects.
4. Tie over eight (8) sewer laterals on Fiero Lane to the Airport gravity sewer line or new
City gravity main in Fiero Lane, if available. Any necessary repairs to private laterals
shall be made by FLWC prior to tie over.
5. Abandon existing FLWC gravity main once laterals are tied over to deeper airport gravity
line.
6. The wastewater treatment system will be decommissioned, removed and left for
COMPANY to salvage or dispose in accordance with state standards.
7. Temporary and permanent easements shall be granted to the City for replacement of the
existing gravity main in Fiero Lane and the existing Airport sewer pump station. This
may include the site of the existing FLWC wastewater treatment system site, or another
suitable site.
8. The leach fields behind Clarion Court will be abandoned in accordance with applicable
code after all Clarion properties are connected to the City wastewater collection system
via private gravity or private force main connections.
Storm Drainage Infrastructure:
The existing stormdrain within the existing County right-of-way is owned and maintained
by the County. The Company shall coordinate with the County to arrange for the
inspection and cleaning of the stormdrain system. In the event the County is unwilling to
perform the work prior to annexation, the City and Company shall work cooperatively to
arrange for an alternative means of cleaning with concurrence and permission from the
County.
Street Infrastructure:
1. The COMPANY will construct improvements and upgrades to Fiero Lane so as to bring
the street infrastructure into a "state of good repair". For purposes of this requirement, the
definition of state of good repair includes:
a. Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
Packet Pg. 169
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
MOA Exhibit 4
Page 19
b. Upgrade street crossings to meet Federal and City ADA ramp and crossing
standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
d. Remove and replace any damaged sections of sidewalk.
2. It is the intent of the agreement that Old Santa Fe Road south of the City/County
boundary line, located immediately south of the Santa Fe Bridge, will remain under
County jurisdiction after annexation of properties on Clarion Court. If as part of the
LAFCO process, the City is required to take all, or part, of Old Santa Fe Road under City
jurisdiction, the following requirements shall be required. The COMPANY will construct
improvements and upgrades to Old Santa Fe Road, that is to be annexed to the City, so as
to bring the street infrastructure into a "state of good repair". For purposes of this
requirement, the definition of state of good repair includes:
a. Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
b. Upgrade street crossings at Clarion Court and the mini storage property to
meet Federal and City ADA ramp and crossing standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
The limits of required improvements begin at the south side of the existing bridge across the East
Fork of San Luis Creek and terminate at the cul-de-sac fronting the mini storage property. No
improvements to the bridge are proposed.
Packet Pg. 170
Item 14
Resolution No. 10678 (2015 Series)
EXHIBIT A
Annexation Task List and Schedule
Fiero Lane Water Company
revised 12-1-2015
MOA Exhibit 5
Page 20
Task No. Description Completion Date Comments
1 Finalize Draft MOA - staff level 10/16/2015
2 IFLWC to organize written majority support for annexation Complete
Majority support to include greater than 50% of total assessed value of
western service area
3 IFLWC Board approves and executes MOA TBD
4 IFLWC Submits Application for Annexation Complete
City Council Hearing #1 (council approves and executes MOA,starting6 12/1/2015
annextaion and ok's pursuing Land based financing)
ILAFCO application submittal #1
7 Applicant (City) petitions LAFCO for approval of interim water and December
Take council reso to lafco. Lafco authorizes MOA (Interim service
wastewater service
agreement)
8 SLO County approves use of gravity sewer main in Fiero Lane 1/ 1/2016
FLWC provides City written confirmation from RWgCB that East Airport can
9 either relocate the existing wastewater treatment facility operated by the Complete
COMPANY or install a new wastewater treatment facility on their premises,
10 IFLWC prepares plans and bonding estimate for interim service connection 1/ 1/2016
IFLWC posts bond or cash equivalent for removal of interim service
11 1/15/201615/ 201fi
connection, and initiates construction
12 City approves interim service plans (assuming 1 round of comments) 1/15/2016
13 ILAFCO Review Hearing #1 February/March 2016 2 to 3 month timeline from application submittal to hearing
14 Applicant Annexation Submittal to City
applicant provides all materials needed by application checklist and
reviewing departments including maped infrastructure and a model on or before 4/1/2016 Application submittal must be deemed complete priorto step 15
showing performance of proposed system once hooked up to City service)
15 Interim water and sewer service begins on or before 4/1/2016
FLWC prepares Engineering Study for water and sewer infrastructure, which Study includes lot by lot analysis of meter size for impact fees- City will16
forms the basis of the Assessment Engineer's Report
7/ 1/2016
provide input on restoration of Fiera Lane pavement.
17 PC Review Hearing #2 (Annexation) September 2016
Date dependent on applicant submittal of complete application
materials
18 City approves Engineering Study (assuming 2 rounds of comments) 9/30/2016
city Council #2 (Council approves and executes LAFCO Annexation, Service Date dependent on applicant submittal of complete application19
Authorization, Addendum
November 2016
materials and PC recommendation
ILAFCO application submittal #2
20
Applicant (City) formally petitions LAFCO for approval of annexation
12/1/2016 4 to 6 month timeline from application submittal to hearing
FLWC prepares Assessment Engineer's Report for impact fees and
21 12/1/2016
l[infrastructure upgrades
23 LAFCO Review Hearing #2 4/1/17
IIf necessary, City prepares and approves master Use Permit or other24 4/1/2017
method to address existing uses
City completes Proposition 218 process and creates assessment or financing25 4/1/2017district
26 f=inancing District funds become available 7/ 1/2017
FLWC prepares construction plans and specifications for infrastructure
27 10/1/2017
improvements
28 City reviews and approves plans (assuming 2 rounds of comments) 1/15/2018
Construction of water and sewer improvements is completed, along with29 1/ 20197/1/2019
items referenced in MOA Section 3d,
30 City accepts constructed improvements and sets new meters. 9/1/2019
FLWC provides City parcel for construction of new lift station and easement Replacement of the City's Airport Lift Station was identified in 2015-1722
for new gravity main in Fiero Lane,
9/1/2019
Financial Plan, Capital Improvement Plan.
If necessary, FLWC relocates wastewater treatment plant to East Airport31
area
12/1/2019
32 Annexation completed and impact fees paid 1/ 1/2020
Packet Pg. 171
Item 14
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Packet Pg. 172
Item 14
Y
rr ,
1010 Marsh St„ San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(20]5.5 C.C.P..)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; 1 am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
�LLt.�
in the year 2019.
1 certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, Califor ia, this
day_ 'i of � A 1-& , 2019.
Patricia 11orton, New Times Legals
AJinin & 11e oo nlON I'M (I Ah,WN rMG 01l !11(191 NESS/Public Nnli_ Proof ur Pub
Proof of Publication of
MAA 11265
SLO CITY CLERK
i Itr„ P
SAN LUIS OBISPO CITY'COUNCIL
NOTICE OF PUBLIC HEARING
the San Luis Obispo City Council invites all
interested persons to attend a public hearing on
Tuesday, March 18, 2019. at 8:00 p.m, in thfl City
Hall Council Chamber, 990 Palm.Streat, son Luis
Obispo, California, to consider the following itornt
Adoption of a Resolution to amend the
Memorandum of Agreement ;MOA} for
annexation of the Fiero Lane-Utrrion Court
area, and extend the timeframe of the MOA
and Interim Water and Sewer Service Outside
Users Agreemani. by one, year. Address of
Application: 850 Fiera Ln. ( NNX 11663 20151.
For more information, you are invited to
contact Shawna Scott of the city's Community
Development Departrhent at. [8051781-7176, or
by email, sscott@stccity.o10.
The City Council may also discuss other tw arrngs
or business items before or after ilia items fisted
above. It you challenge Ute proposed project in
court, you may be limited to raising only those
issues you or someone else raised at the public
hearing described in this notice, or in written
correspondence delivered to the City Council at, or
prior to, the pubic ]tearing.
Reports far this meeting will be available for review
in the City Clerk's Office and online at wyy V,2LQCiW.
gM on Marini 13,.2019, Please call the City Clerk's
Office at (8053 781-7100 for more information.
The City Council meeting Will be televised live era
Charter Cable Channel 20 and live streaming an
^k�sw.51 ' .oro.
Teresa Purrington,
City Clerk City.of San Luis Obispo
March 7, 2019
FIERO LANE
CLARION COURT
First Amendment to
Memorandum of Agreement and
Outside User Agreement
Extension
City Council
March 19, 2019
CC 3/19/19 Slide 1
Staff Recommendation
•Adopt a one-year extension to an existing
Memorandum of Agreement (2015 MOA) to extend
interim water and wastewater services pending
annexation of the Fiero Lane-Clarion Court area to
the City
•Approve First Amendment to the 2015 MOA, which
includes minor changes to the MOA to facilitate the
extension, update schedule tasks, and clarify
payment of water and wastewater impact fees
•Authorize the Community Development and Utilities
Directors to adjust the MOA schedule to allow for
financing and planning for infrastructure
CC 3/19/19 Slide 2
Background
•December 2015 City Council adopts MOA
•MOA provides for several tasks involved in pursuing
annexation of the area by January 2020
•Local Agency Formation Commission (LAFCO)
approval of one-year “outside users agreement” to
provide interim water and wastewater services pending
annexation (April 2016)
•LAFCO approved two-year extension in April 2017
CC 3/19/18 Slide 3
Background
•Area has long been the focus of annexation as
provided in General Plan & Airport Area Specific Plan
•Comprehensive analysis and planning for City
infrastructure upgrades and fee payments has been
completed, along with a financing plan that is being
coordinated between the City and County
•The recommended extension of the MOA should allow
for annexation by May 2020 and completion of
infrastructure by July 2020
CC 3/19/18 Slide 4
Fiero Lane-Clarion Court
Airport Area Specific Plan
•Approximately
40 acre
annexation area
•30 properties
largely built out
•Estimated
developed
space just over
500,100 sq ft
CC 3/19/19 Slide 5
Fiero Lane-Clarion Court &
East Airport Commerce Park-Senn/Glick
Annexation Areas
EACP –Senn/Glick
•Approximately
58.5 acre
annexation area
•30 properties
with about 11 ac
still vacant
•Estimated
developed space
just under
365,500 sq ft
•County Permits
allow 500,000 sf
of space
FIERO-CLARION
EACP –
Senn Glick
Infrastructure Funding
Statewide Community Infrastructure Program (SCIP)
CC 3/19/19 Slide 6
•SCIP is a financing program that enables
developers to pay impact fees, engineering and
financing of public improvements
•Operates similar to Assessment District process
•Resolutions authorizing SCIP:
✓September 18, 2018 (County BOS)
✓November 13, 2018 (City Council)
Analysis
•Additional Items addressed since 2015:
✓Added lift station to serve the area
✓Use of SCIP funding for City fees and improvements
✓Enhanced City role in engineering design and
construction inspection
✓Potential County funding for Fiero Lane paving
✓Coordination with County on continued developments in
the area under County jurisdiction
✓Updated MOA schedule Exhibit A
✓Possible inclusion of the East Side/Senn Glick
Annexation concurrent with Fiero-Clarion
CC 3/19/19 Slide 7
Progress Towards Annexation
•LAFCO consideration of one-year extension Outside Users
Agreement -parallel with Council consideration of First
Amendment to MOA
•Concurrent processing of Fiero Lane-Clarion Court and
East Airport-Senn Glick area annexations –in process
•Field meetings with City staff and FLWC and East Airport -
Senn Glick representatives to fine-tune scope of
infrastructure improvements -completed
•Development of pre-annexation agreement for East-Airport-
Senn Glick –in process
•Environmental review of annexations –in process
CC 3/19/19 Slide 8
Staff Recommendation
Adopt Resolution (Attachment A) approving:
•First Amendment to the 2015 MOA:
➢Continue interim water and wastewater services to
Fiero Lane-Clarion Court area for one year, pending
2020 annexation
➢Amend MOA schedule to facilitate the extension, SCIP
funding process, and update infrastructure tasks
➢Clarify payment of water and wastewater impact fees
during interim period
➢Authorize the Community Development and Utilities
Directors to adjust the MOA schedule to allow for financing
and planning for infrastructure
CC 3/19/19 Slide 9
Questions ?
CC 3/19/19 Slide 10
•Adopted 2015
MOA Schedule
KEY DATES
•Mar 2016 LAFCO Interim
Service “Outside User” Agree
•Aug 2016 City Services begin
•2017-2018 coordination on
improvement scope of work
•Sep-Nov 2018 SCIP funding
option approved by County
and City
•Sep 2019 improvements were
to have been completed
•Jan 2020 annex complete
•Side-By-Side 2015 and 2019 MOA Schedules
Task
No.Description
Original
Completion Date
per MOA
Actual
Completion Date
Proposed
Completion Date Comments
1 Finalize Draft MOA - staff level 10/16/2015 10/16/2015
2 FLWC to organize written majority support
for annexation Complete 11/15/2015
3 FLWC Board approves and executes MOA TBD 12/11/2015
4 FLWC Submits Application for Annexation Complete 3/31/2015
5 PC Hearing #1 Complete Not applicable
6
City Council Hearing #1 (council approves
and executes MOA, starting annexation
and ok's pursuing Land based financing)
12/1/2015 12/15/2015
7
LAFCO application submittal #1
Applicant (City) petitions LAFCO for
approval of interim water and wastewater
service
December 2016 3/15/2016
8 SLO County approves use of gravity sewer
main in Fiero Lane 1/1/2016 7/1/2016
This task was originally contemplated as a City/County
function. The Company assisted in the resolution via a jointly
signed letter after Company-led negotiations.
Note: The schedule for uncompleted tasks requires timely action on the part of the FLWC, City, County,
and CSDA (SCIP). As such, the dates are not within the sole control of FLWC and may need to be adjusted
Annexation Task List and Schedule
Fiero Lane Water Company
revised 3-6-19
•Side-By-Side 2015 and 2019 MOA Schedules
9
FLWC provides City written confirmation
from RWQCB that East Airport can either
relocate the existing wastewater treatment
facility operated by the COMPANY or install
a new wastewater treatment facility on
their premises.
Complete 2/23/2016
10 FLWC prepares plans and bonding estimate
for interim service connection 1/1/2016 5/18/2016 Pre-modeling for permanent connection was performed first
prior to City endorsement of interim connection.
11
FLWC posts bond or cash equivalent for
removal of interim service connection, and
initiates construction
1/1/2016
N/A, <$2500 so
included in
deposit
12 City approves interim service plans
(assuming 1 round of comments)1/15/2016 8/10/2016
13 LAFCO Review Hearing #1 Interim
Connection
February/March
2016 4/21/2016
14
Applicant Annexation Submittal to City
(applicant provides all materials needed
by application checklist and reviewing
departments including mapped
infrastructure and a model showing
performance of proposed system once
hooked up to City utilities.)
on or before
4/1/2016
Application and
fee submitted on
3/31/2015.
Additional
materials
provided per City
request prior to
interim service on
3/25/2016
Task
No.Description
Original
Completion Date
per MOA
Actual
Completion Date
Proposed
Completion Date Comments
•Side-By-Side 2015 and 2019 MOA Schedules
Task
No.Description
Original
Completion Date
per MOA
Actual
Completion Date
Proposed
Completion Date Comments
15 Interim water and sewer service begins on or before
4/1/2016 8/26/2016
16
FLWC completes Engineering Study for
water and sewer infrastructure, which
forms the basis of the SCIP Engineer's
Report
7/1/2016 3/25/2016
Meter size analysis and water main configuration included,
but confirmation needed on sewer connections from City
gravity main / lift station project.
17 County to adopt SCIP/CSCDA Resolution,
consenting use of the SCIP Program
Not in original
MOA 9/11/2018
18 City to adopt SCIP/CSCDA Resolution,
consenting use of the SCIP Program
Not in original
MOA 11/13/2018
19 Formal application for SCIP funding for
Fiero Lane annexation
Not in original
MOA 11/26/2018
20 City/Fiero Apply for LAFCO Extension Not in original
MOA March 2019
21 LAFCO conducts public hearing on Outside
User's Agreement Extension
Not in original
MOA March 2019 Requesting a 1-year extension, to March 2020
22
City confirms scope of sewer improvements
necessary (if any) prior to implementation
of new gravity sewer and lift station
Not in original
MOA 3/1/2019
For inclusion in SCIP Engineer's Report. Company is also in
discussions with SLO Co on street rehabilitation costs, though
property-owner funding will be assumed if necessary.
At this point in the original schedule, annexation was to proceed to completion prior to securing funding, with the City taking the lead on the Proposition 218
process. The tasks below have been reoriented to accommodate the City's revised approach, and funding will be secured first , allowing annexation to occur
following funding so the City can oversee the preparation of engineering plans and construction inspections for the infrastructure improvements .
•Side-By-Side 2015 and 2019 MOA Schedules
Task
No.Description
Original
Completion Date
per MOA
Actual
Completion Date
Proposed
Completion Date Comments
23 SCIP Staff prepares Engineer's Report for
Proposition 218 Process
Not in original
MOA 6/1/2019 Timing to be confirmed by SCIP staff
24 CSCDA/SCIP Resolution of Intention Not in original
MOA August 2019
25 SCIP Funding Confirmed and Available Not in original
MOA October 2019
26
City Council #2 Council approves and
executes LAFCO Annexation, Service
Authorization, Addendum
May 21, 2019 City elected to defer annexation until after funding becomes
available (April 2017)
27
LAFCO application submittal #2
Applicant (City) formally petitions LAFCO
for approval of annexation
June 2019
28 LAFCO Review Hearing #2, Completing
annexation
August-
September 2019
Final action by LAFCO to concide with 2019 Extension
request
29
Preparation of detailed construction
documents for permanent connections,
street rehabilitation, and meter
replacement (scope of sewer
improvements to be confirmed)
February 2020 Includes City approval process
30
City files Boundary Map - Secure State
Board of Equalization approval - Finalize
annexation
April-May 2020
31 Property Owners secure City Business
Licenses April-June 2020
•Side-By-Side 2015 and 2019 MOA Schedules
Task
No.Description
Original
Completion Date
per MOA
Actual
Completion Date
Proposed
Completion Date Comments
32
Construction of water and sewer
improvements is completed, along with
items referenced in MOA Section 3d, new
meters set, impact fees are paid.
July 2020 Construction begins after annexation approved and Funds
become available
33
FLWC provides City parcel for construction
of new lift station and easement for new
gravity main in Fiero Lane.
July 2020
34 If necessary, FLWC relocates wastewater
treatment plant to East Airport area TBD Pending East Airport discussions, may not be necessary