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HomeMy WebLinkAbout02-16-2016 Agenda Packet updated Pages Tuesday, February 16, 2016 4:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Jan Marx ROLL CALL: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx BUSINESS ITEMS 1. ADOPTION OF RESOLUTIONS AND AGREEMENTS CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREAS OF THE CITY OF SAN LUIS OBISPO TO PARTICIPATE IN PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAMS (CODRON/FOWLER – 30 MINUTES) Recommendation 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Hero Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle char ging infrastructure and approving amendment of the Joint Powers Agreement related thereto.” 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Home Finance Authority Community Facilities District No. 2014-1 (Clean Energy) to finance renewable energy improvements, energy efficiency and water conservation improvements and electric vehicle charging infrastructure and approving associate membership in the joint exercise of powers authority related thereto.” 3. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Home Finance Authority, program to finance renewable energy generation, energy and water efficiency improvements and electric vehicle charging infrastructure and approving associate membership in the joint exercise of powers authority related thereto.” San Luis Obispo City Council Agenda February 16, 2016 Page 2 4. Authorize the Mayor to enter into and sign the individual agreements with the PACE program providers. NOTE: The Closed Session will take place in the Council Hearing Room, 990 Palm St. San Luis Obispo, California 93401. PUBLIC COMMENT ON CLOSED SESSION ITEMS CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL –EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: San Luis Obispo Police Officers Association v. City of San Luis Obispo; State of California Public Employment Relations Board Case No. LA-CE-729-M B. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Katie Lichtig, Derek Johnson, Greg Zocher, J. Christine Dietrick, Jon Ansolabehere, Rick Bolanos, Deanna Cantrell Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees ADJOURN TO THE REGULAR MEETING OF FEBRUARY 16, 2016 San Luis Obispo City Council Agenda February 16, 2016 Page 3 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Jan Marx PLEDGE OF ALLEGIANCE: Council Members John Ashbaugh CITY ATTORNEY REPORT ON CLOSED SESSION PRESENTATIONS 2. PROCLAMATION - HISTORY CENTER OF SAN LUIS OBISPO COUNTY MUSEUM'S 60TH ANNIVERSARY (MARX – 5 MINUTES) Presentation of a Proclamation to the History Center of San Luis Obispo County, recognizing the History Center Museum’s 60th Anniversary. 3. PROCLAMATION - SPAY DAY USA (MARX – 5 MINUTES) Presentation of a Proclamation to the Feline Network of the Central Coast, proclaiming February 23, 2016, as “Spay Day USA” in the City of San Luis Obispo. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (gov. Code sec. 54954.2). Staff may be asked to follow up on such items. San Luis Obispo City Council Agenda February 16, 2016 Page 4 CONSENT AGENDA A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the C onsent Agenda within the three minute time limit. 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Recommendation Waive reading of all resolutions and ordinances as appropriate. 5. MINUTES OF THE CITY COUNCIL MEETING OF JANUARY 5, 2016 (MAIER) Approve the Minutes of the City Council meeting of January 5, 2016. 6. HOUSING AUTHORITY REQUEST TO REASSIGN AND EXTEND LEASE FOR CITY OWNED PROPERTY LOCATED AT 1090 AND 1092 ORCUTT ROAD, AND 1105 LAUREL LANE (CODRON/WISEMAN) Recommendation 1. Approve and authorize the City Manager to execute an Assignment and Assumption of Lease Agreement for City owned property located on Orcutt Road from Laurel Creek Apartments, LP to the Housing Authority of the City of San Luis Obispo. 2. Approve and authorize the City Manager to execute an Amended and Restated Ground Lease with the Housing Authority extending the lease agreement for an additional seventy five years. 7. REVIEW OF AN EXCHANGE OF PROPERTY BORDERING A PARCEL AT 2881 BROAD STREET (CODRON/OTZELL) Recommendation As recommended by the Planning Commission, adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Real Property Exchange Agreement with the property owner(s) of 2881 Broad Street, to exchange City surplus property, being a portion of Lot A of Tract 1150, for property along the northerly edge of Perkins Lane (SDBV-1990-2015).” San Luis Obispo City Council Agenda February 16, 2016 Page 5 8. 2015 ASSISTANCE TO FIREFIGHTERS GRANT APPLICATION (OLSON/COX) Recommendation 1. Authorize Fire Department staff to continue the process for a grant application to Federal Assistance to Firefighters Grant Program in the amount of $23,840 to purchase one Respirator/Self-Contained Breathing Apparatus (“SCBA”) Quantitative Fit Tester and one Extractor Washer. 2. Authorize City Manager to execute documents necessary to appropriate the grant funds upon notification that the grant has been awarded. 3. Delegate the Purchase Authority to the Finance and Information Technology Director to review quotes and award contracts or purchase orders. 9. ORDINANCE NO. 1628 (SECOND READING) - MUNICIPAL CODE TITLE 10: VEHICLES AND TRAFFIC AMENDMENTS (GRIGSBY/HUDSON) Recommendation Adopt Ordinance No. 1628 (2016 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 regarding Vehicles and Traffic,” to reflect current City organizational structure. 10. AUTHORIZE THE CITY MANAGER TO APPROVE CONTINUED CONSULTANT SERVICES WITH LIEBERT CASSIDY WHITMORE (IRONS/FLETCHER) Recommendation Authorize the City Manager to approve up to $100,000 in continued consultant services with Liebert Cassidy Whitmore (LCW) in fiscal year 2015-16 as necessary to provide labor relations and specialized employment services. 11. WELL SITE RELINQUISHMENT AT 1460 CALLE JOAQUIN (QUIKY CAR WASH) (MATTINGLY/FLOYD) Recommendation Approve and authorize the Mayor to execute the Quit Claim Deed and Indemnification Agreement Affecting Real Property and Bill of Sale for the well at 1460 Calle Joaquin. San Luis Obispo City Council Agenda February 16, 2016 Page 6 STUDY SESSION 12. CONCEPTUAL REVIEW AND PRELIMINARY FEEDBACK FOR A PLANNED DEVELOPMENT TO ALLOW BUILDING HEIGHTS UP TO 75 FEET FOR A MIXED-USE PROJECT THAT INCLUDES AN 80-ROOM HOTEL, 26,000 SQUARE FEET OF RESIDENTIAL UNITS, 20,000 SQUARE FEET OF RETAIL/RESTAURANT SPACE, 33,000 SQUARE FEET OF OFFICE SPACE AND A 45-FOOT TALL PARKING GARAGE AND TRANSIT CENTER (CODRON / COHEN – 120 MINUTES) Recommendation Receive a presentation regarding the proposed project located at 1101 Monterey and 1144 and 1166 Higuera Streets and provide input and guidance to questions posed by the applicant. BUSINESS ITEMS 13. 2015-16 MID-YEAR BUDGET REVIEW (LICHTIG / JOHNSON / STANWYCK / BRADFORD – 45 MINUTES) Recommendation 1. Receive and discuss an update of changes in the financial position based on revised projections for all funds for the 2015-16 Fiscal Year, and the General Fund Five-Year Forecast for 2015-2016. 2. Receive an update on Status of Major City Goals and Other Important Objectives. 3. Adopt Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving changes to the 2015-16 Budget,” as presented in the accompanying Mid-Year Budget Review document. COUNCIL LIAISON REPORTS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit—3 minutes each. San Luis Obispo City Council Agenda February 16, 2016 Page 7 COUNCIL COMMUNICATIONS (Not to exceed 15 minutes) At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, March 1, 2016 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100. Page intentionally left blank. Meeting Date: 2/16/2016 FROM: Michael Codron, Community Development Director Prepared By: Xzandrea Fowler, Community Development Deputy Director SUBJECT: ADOPTION OF RESOLUTIONS AND AGREEMENTS CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREAS OF THE CITY OF SAN LUIS OBISPO TO PARTICIPATE IN PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAMS RECOMMENDATION It is recommended that the City Council: 1. Adopt a resolution (Attachment A) approving an amendment to the Western Riverside Council of Governments (WRCOG) Joint Powers Agreement to add the City as an Associate Member in order to authorize the City’s participation in the California HERO Program; and 2. Adopt a resolution (Attachment B) to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City’s participation in the CHFA SB 555 Community Facilities District (YGrene program); and 3. Adopt a resolution (Attachment C) to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City’s participation in the CHFA AB 811 Authority PACE Program (YGrene program) ; and 4. Authorize the Mayor to enter into and sign the individual agreements with the PACE program providers (Attachments D and E). REPORT-IN-BRIEF Property Assessed Clean Energy (PACE) is a financing mechanism that allows property owners to finance eligible energy and water efficiency, and renewable energy projects, by adding the cost as an assessment to the property tax bill. This mechanism eliminates upfront costs and allows repayment to be made over a long timeframe, typically from five to twenty years. It is common practice for local governments to enter into agreements with PACE administrators because it allows the local government to establish certain guidelines and best practices for PACE program implementation. These guidelines and best practices can include, but are not limited to, integration with City and/or County residential energy efficiency programs, increa sed consumer protections, ability to terminate programs, and guaranteed access to program related data. Beginning in 2009, the City Council supported efforts to bringing PACE financing programs to San Luis Obispo. Council adopted a resolution that enabled San Luis Obispo property owners to 1 Packet Pg. 8 participate in the PACE program that is operated by CaliforniaFIRST. However, loans were not made available to residential consumers until July 2014. The delay was due to concerns expressed by Federal Housing Financing Agency (FHFA) and its determination that PACE loans would not be supported as superior liens by mortgage lienholders such as Fannie Mae or Freddie Mac. In 2014, the State of California established a loan-loss program to address these concerns and subsequently, CaliforniaFIRST made residential loans available. Recently, other PACE program providers have approached San Luis Obispo County jurisdictions about adding their financing program to the available options. Currently, in addition to the City of San Luis Obispo, the following local cities allow PACE programs: Arroyo Grande, Atascadero, Grover Beach, Morro Bay and Paso Robles. Staff from those cities and the County conferred and agreed that adding additional PACE program providers would benefit the community by adding choice for residents and businesses interested in financing energy and water conservation projects. BACKGROUND Board of Supervisors Action On June 2, 2015, the San Luis Obispo County Board of Supervisors directed County Planning & Building Staff to implement PACE, by directing staff to develop evaluation criteria for a Request for Proposal (RFP) process to vet and select the most qualified PACE provider(s) for the County of San Luis Obispo. County Planning and Building staff initiated the RFP on August 21, 2015. A selection committee including representatives from multiple County departments and the City of San Luis Obispo was formed to review and score each proposal received based on a standardized set of criteria. Following proposal review, interviews were conducted and other counties and cities were contacted regarding their experience and satisfaction with those PACE administrators. The selection committee recommended three PACE administrators, because having multiple qualified providers fosters a more competitive marketplace that maximizes the options available to property owners participating in the PACE program. On November 17, 2015 the Board of Supervisors adopted resolutions that added the County as an Associate Member to Joint Powers Agreements in order to authorize properties within the unincorporated areas of the County to participate in CaliforniaFIRST, HERO, and the YGrene PACE financing programs. By consensus, staff from the County and the cities agreed that all participating jurisdictions should recommend to their elected bodies to offer the same program(s) in an effort to minimize market confusion for customers and contractors and to promote energy efficiency programs in a more cohesive manner. 1 Packet Pg. 9 DISCUSSION PACE Program Overview The CaliforniaFIRST, HERO and YGrene PACE programs, recently authorized by the Board of Supervisors, would allow property owners in San Luis Obispo County and other participating cities to finance renewable energy, energy and water efficiency improvements, and electric vehicle charging infrastructure on their property. If a property owner chooses to participate, the installed improvements will be financed by the issuance of bonds by a joint powers authority, and will be collected together with property taxes. The bonds are secured by a voluntary contractual assessment levied on such owner’s property, with no resources from the local government or other participating jurisdictions. Depending on the specific PACE program, this financing is available for eligible improvements on both residential and non-residential properties. PACE financing programs can be set up and administered under the following statutory frameworks: 1. The Improvement Act of 1911 (Improvement Act) as amended by AB 811, or 2. The Mello-Roos Act as amended by SB 555. Although, both SB 555 and AB 811 PACE program methods accomplish the same purpose, several important statutory and structural differences exist between program methods that operate under these statues. AB 811 allows for the formation of assessment districts to provide for the financing of clean energy and water conservation improvements on commercial and residential properties. The CaliforniaFIRST and HERO programs all involve assessment districts formed pursuant to AB 811. However, CaliforniaFIRST was originally authorized to provide PACE programs to City of San Luis Obispo property owners pursuant to Chapter 29 of Division 7 of the Streets & Highways Code and the issuance of improvement bonds under the Improvement Bond Act of 1915. SB 555 authorizes the formation of Community Facilities Districts (“CFDs”) to finance the acquisition, installation and improvement of energy efficiency, water conservation and renewable energy systems on real property. Under SB 555, parcels are annexed into the district with each participating owner consenting in writing to the annexation. As with AB 811 method, a special tax to repay project financing is then levied against the property owner. The YGrene program that is currently be offered involves annexation into a CFD. Participation in the HERO and YGrene programs both require that the City must become an Associate Member of their Joint Powers Authorities. There are no dues or other costs for the City associated with membership. Federal Housing Finance Agency (FHFA) – Fannie Mae/Freddie Mac The Federal Housing Finance Agency’s (FHFA) concerns regarding PACE lien priority remains, because as a local assessment, the lien would be superior to Fannie Mae/ Freddie Mac’s 1 Packet Pg. 10 mortgage interest. Due to this objection, on August 31, 2010, mortgage originators were informed that the FHFA would not be purchasing any mortgages with PACE liens. In 2014, in response to FHFA concerns, the State of California’s established a loan loss reserve fund for residential PACE Programs to provide a level of risk mitigation. Although the loan loss reserve fund has been established and there has been a lack of related adverse consequences experienced by ongoing programs, the FHFA’s position has not changed. Staff recognizes that risks to individual homeowners remain because FHFA has not changed its stated policy that Fannie Mae and Freddie Mac should not purchase mortgages on properties encumbered by residential PACE programs. PACE providers have the responsibility to di sclose the risks to prospective participants so that they can decide whether or not to participate and the program administrators will execute an indemnification and insurance agreement. Given the establishment of the State’s PACE Loss Reserve Program as well as the success of PACE programs statewide, staff recommends that the City of San Luis Obispo continue expanding PACE by adopting the resolutions authorizing the recommended PACE programs. PACE program benefits  Savings: Energy and water savings are possible depending on the improvements financed.  Eligibility: Property owners can choose to participate in the program at their discretion. Improvements and properties must meet eligibility criteria in order to qualify for financing.  Payment obligation stays with the property: The voluntary contractual assessment stays with the property upon transfer of ownership. Certain residential conforming mortgage providers will, however, require the assessment be paid off at the time the property is refinanced or sold.  Prepayment option: The property owner can choose to pay off the assessments at any time, subject to applicable prepayment penalties. Potential Benefits to the City of San Luis Obispo  Potential GHG emission reduction and economic benefits resulting from increased energy and water conservation by residents and businesses and local job creation to help meet GHG reduction goals in the City’s Climate Action Plan.  The City is not obligated to repay the bonds or to pay any delinquent assessments levied on the participating properties.  “Turn-key” program. All PACE program and assessment administration, bond issuance and bond administration functions are handled by the PACE program administrators (CaliforniaFIRST, HERO, and YGrene). Little, if any, City staff time is needed to participate in the PACE program.  Adding additional PACE financing programs increasing financing options for city residents and businesses. The proposed resolutions would enable the recommended PACE programs to be offered to the owners of property located within the City who wish to participate. 1 Packet Pg. 11 Recommended PACE Programs California Statewide Communities Development Authority – CaliforniaFIRST Program The California Statewide Communities Development Authority is a state-wide JPA formed by the California State Associations of Counties and the League of California Cities. The City is a member of CSCDA. CSCDA’s PACE program is known as CaliforniaFIRST and is administered by Renewable Funding. CSCDA uses an “open market” source of funding to finance the loans made to property owners. Under this model, the property owner arranges the financing with a private lender. CSCDA then issues a bond, secured by the assessment, to the private lender. In 2010 CSCDA suspended launch of the CaliforniaFIRST residential program due the FHFA issues discussed above, but moved forward with its commercial program. In 2014, CaliforniaFIRST’s launched their residential program, after developing underwriting standards and disclosures in an effort to address the risks related to residential PACE, and the State of California’s establishment of a loan loss reserve fund for residential PACE Programs to provide a level of risk mitigation. Although the City has already authorized CSCDA’s CaliforniaFIRST program to be offered in San Luis Obispo, its program administrator will need to execute an indemnification and insurance agreement to further mitigate the level of risk. California Home Finance Authority – YGrene Program California Home Finance Authority ("CHFA”), which is in the process of formally changing its name to Golden State Finance Authority, is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time. CHFA has established two Property Assessed Clean Energy (“PACE”) financing programs for residential, commercial, industrial and agricultural properties to address high up-front costs for property owners who wish to improve their properties through installation of measures that will generate renewable energy or reduce their energy and water use. By offering low cost financing, CHFA's PACE programs allow construction of these projects to proceed and, in the process, stimulate building activity and the overall local economy, reduce peak energy demand, increase property values, and generate savings on utility bills for property owners. CHFA contracts with YGrene Energy Fund CA LLC (YGrene) to serve as the program administrator and to operate the YGrene Works for California PACE financing program. CHFA sought and has completed the process of validation for both the SB 555 and the AB 811 programs, as described above with the Superior Court for the County of Sacramento. As of 2015, the CHF SB 555 PACE program was fully operational. Although CHFA is implementing only the SB 555 PACE program at this time, CHFA chose to form, validate and maintain both the SB 555 and AB 811 programs offerings to ensu re that the YGrene program remains the most innovative, cost effective and most secure PACE program in 1 Packet Pg. 12 the state. Should market conditions, consumer demand and/or legislative changes affect one PACE program more that another, CHFA would have the flexibility to offer the program that best supports CHFA's vision of service without any interruption to participating counties and cities and their property owners. CHFA intends to maximize the benefits of both program offerings. To support a more competitive marketplace, staff is recommending that the Council adopt two resolutions that would authorize CHFA to offer both PACE program models: 1) The first resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incorporated areas of the City to participate in the CHFA SB 555 Community Facilities District. 2) The second resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incorporated areas of the City to partici pate in the CHFA AB 811 Authority PACE Program. Each resolution also authorizes CHFA (1) to accept applications from property owners within the City’s incorporated area to finance authorized improvements; and (2) to conduct proceedings and levy special taxes or contractual assessments, as applicable, on the property of participating owners. Western Riverside Council of Governments – HERO Program Western Riverside Council of Governments (WRCOG) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California and the Joint Powers Agreement entered into on April 1, 1991, as amended from time to time. WRCOG’s PACE program is known as HERO and is administered by Renovate Americ a, Inc. The HERO program finances installation of renewable energy, energy or water efficiency products, or electric charging infrastructure that are permanently fixed to a property owner’s real property. The program is available for eligible improvements on both residential and non- residential properties. The HERO program is similar to the CaliforniaFIRST program, in that the bonds are secured by voluntary contractual assessments levied on such owner’s property, with no recourse to the City or other participating jurisdictions. Property owner participation is completely voluntary. Property owners who wish to participate in the program agree to repay the amount borrowed through the voluntary contractual assessment collected together with their property taxes. CONCLUSION The City of San Luis Obispo previously approved participation in the CaliforniaFIRST PACE program. Adding additional PACE programs, to be administered by HERO and YGrene, 1 Packet Pg. 13 provides more options for City property owners, and will not add to or require any additional responsibilities for the City. CONCURRENCES The City Attorney’s Office has reviewed and approved the Resolutions and JPA amendments as to form and content. ENVIRONMENTAL REVIEW This activity is not a Project as defined in CEQA Guidelines Section 15378(b) (5). Based on 15378(b) (5) the activity does not meet the definition of a “Project” and would therefore not be subject to CEQA pursuant to Section 15060(c) (3) of the State CEQA Guidelines. FISCAL IMPACT There are no fiscal impacts associated with the recommended actions. There is no cost to the City to become an associate member of the JPA or by opting into the PACE program described in this report. The City will have no administrative responsibilities, marketing obligations, or financial obligations associated with the PACE program. ALTERNATIVES Alternative #1: Do not participate in the recommended PACE programs Pros: No additional staff effort would be needed, freeing up resources to work on other City initiatives. Cons: Would limit the City’s ability to achieve progress on implementation of the City’s Climate Action Plan, specifically related to GHG reduction. Reason for not recommending: Significant progress needs to be achieved on Implementation of the Climate Action Plan in order to achieve the City’s target GHG reduction by 2020 and tools, like PACE, can help to achieve those goals. Alternative #2: San Luis Obispo could develop and administer its own PACE program Pros: The City would have complete control over its ability to develop and administer a PACE program. Cons: Would require approximately an additional 2-4 FTEs, depending on market demand in the City, to develop and administer a program. Additionally, would likely require the City to allocate significant funding from the General Fund and/or alternative funding source funding for start-up costs. Reason for not recommending: Staff does not believe this is a viable option given staffing and budget limitations. 1 Packet Pg. 14 Attachments: a - HERO Resolution b - YGrene Resolution - CFD SB 555 c - YGrene Resolution - PACE AB 811 d - HERO Agreement (Exhibit A - JPA Amendment) e - YGrene Agreement (Exhibit A -JPA Agreement) f - CaliforniaFIRST Resolution_Signed 1 Packet Pg. 15 RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING AMENDMENT OF THE JOINT POWERS AGREEMENT RELATED THERETO WHEREAS, the Western Riverside Council of Governments (“Authority”) is joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Powers Agreement entered into on April 1, 1991, as amended from tim e to time (the “Authority JPA”); and WHEREAS, the Authority has established the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, the City of San Luis Obispo (the “City”) is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, protection of our environment, and reversal of climate change; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the California HERO Program would promote the purpose cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency and independence, and in doing so cooperate with the Authority in order to efficiently and economically assist property owners in the City with financing such Improvements; and WHEREAS, the Authority has established the California HERO Program, which is a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into on April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of San Luis Obispo as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) Program Services within the City (the “JPA Amendment”), by and between Authority 1.a Packet Pg. 16 Attachment: a - HERO Resolution (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 2 R ______ and the City, a copy of which is attached as Exhibit “A” hereto, to assist property owners within the jurisdiction boundary of the City in financing the cost of installing Improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. On the date hereof, the City Council held a public hearing and the City Council hereby finds and declares that properties in the jurisdiction boundary of the City will be benefited by the availability of the California HERO Program to finance the installation of the Improvements. SECTION 2. The City Council hereby consents to inclusion in the California HERO Program of all of the properties in the jurisdiction boundary of the City and to the Improvements, upon the request and by voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the California HERO Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including levying, collecting and enforcement of contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. SECTION 4. This City Council hereby approves JPA Amendment and authorizes the execution thereof by appropriate City officials. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program. SECTION 6. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4). SECTION 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority Executive Committee. 1.a Packet Pg. 17 Attachment: a - HERO Resolution (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 3 R ______ Upon motion of Council Member _________, seconded by Council Member ________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ____day of __________________ 2016. Mayor Jan Marx ATTEST: Jon Ansolabehere Interim 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 ______________, _________. ______________________________ Jon Ansolabehere Interim City Clerk 1.a Packet Pg. 18 Attachment: a - HERO Resolution (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 4 R ______ Exhibit A JPA Agreement [to be inserted] 1.a Packet Pg. 19 Attachment: a - HERO Resolution (1256 : PACE Program Resolutions and Agreements) RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HOME FINANCE AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2014-1 (CLEAN ENERGY) TO FINANCE RENEWABLE ENERGY IMPROVEMENTS, ENERGY EFFICIENCY AND WATER CONSERVATION IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO WHEREAS, the California Home Finance Authority, a California joint powers authority, (the “Authority”) has established the Community Facilities District No. 2014-1(Clean Energy) in accordance with the Mello-Roos Community Facilities Act, set forth in sections 53311 through 53368.3 of the California Government Code (the “Act”) and particularly in accordance with sections 53313.5(l) and 53328.1(a) (the “District”); and WHEREAS, the purpose of the District is to finance or refinance (including the payment of interest) the acquisition, installation, and improvement of energy efficiency, water conservation, renewable energy and electric vehicle charging infrastructure improvements permanently affixed to private or publicly-owned real property (the “Authorized Improvements”); and WHEREAS, the Authority is in the process of amending the Authority Joint Powers Agreement (the “Authority JPA”) to formally change its name to the Golden State Finance Authority; and WHEREAS, the City of San Luis Obispo is committed to development of renewable energy generation and energy efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in the Act, the Legislature has authorized a parcel within the territory of the District to annex to the District and be subject to the special tax levy of the District only (i) if the city or county within which the parcel is located has consented, by the adoption of a resolution by the applicable city council or county board of supervis ors, to the inclusion of parcels within its boundaries in the District and (ii) with the unanimous written approval of the owner or owners of the parcel when it is annexed (the “Unanimous Approval Agreement”), which, as provided in section 53329.6 of the Act, shall constitute the election required by the California Constitution; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy efficiency and water conservation and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Authorized Improvements; and 1.b Packet Pg. 20 Attachment: b - YGrene Resolution - CFD SB 555 (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 2 R ______ WHEREAS, the Authority has established the District, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by execution of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and, to assist property owners within the incorporated area of the City in financing the cost of installing Authorized Improvements; and WHEREAS, the City will not be responsible for the conduct of any special tax proceedings; the levy and collection of special taxes or any required remedial action in the case of delinquencies in the payment of any special taxes in connection with the District. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. On the date hereof, the City Council held a public hearing and the City Council hereby finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority CFD No. 2014-1 (Clean Energy) to finance the installation of the Authorized Improvements. SECTION 2. The City Council hereby consents to inclusion in the Authority CFD No. 2014-1 (Clean Energy) of all of the properties in the incorporated area within the City and to the Authorized Improvements, upon the request of and execution of the Unanimous Approval Agreement by the owners of such properties when such properties are annexed, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority CFD No. 2014-1 (Clean Energy) and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Authorized Improvements. SECTION 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority CFD No. 2014-1 (Clean Energy) within the City, and report back periodically to this City Council on the success of such program. SECTION 6. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4). 1.b Packet Pg. 21 Attachment: b - YGrene Resolution - CFD SB 555 (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 3 R ______ SECTION 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority. Upon motion of Council Member _________, seconded by Council Member ________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Jon Ansolabehere Interim 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 ______________, _________. ______________________________ Jon Ansolabehere Interim City Clerk 1.b Packet Pg. 22 Attachment: b - YGrene Resolution - CFD SB 555 (1256 : PACE Program Resolutions and Agreements) Resolution No._____ (2016 Series) Page 4 R ______ Exhibit A JPA Agreement [to be inserted] 1.b Packet Pg. 23 Attachment: b - YGrene Resolution - CFD SB 555 (1256 : PACE Program Resolutions and Agreements) RESOLUTION NO. _________(2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HOME FINANCE AUTHORITY, PROGRAM TO FINANCE RENEWABLE ENERGY GENERATION, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO WHEREAS, the California Home Finance Authority (“Authority”) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time (the “Authority JPA”); and WHEREAS, the Authority is in the process of amending the Authority JPA to formally change its name to the Golden State Finance Authority; and WHEREAS, Authority has established a property-assessed clean energy (“PACE”) Program (the “Authority PACE Program”) to provide for the financing of renewable energy generation, energy and water efficiency improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of San Luis Obispo (the “City”) is committed to development of renewable energy generation and energy and water efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the Authority PACE Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency, and in doing so cooperate with Authority in order to efficiently and economically assist property owners within the City in financing such Improvements; and WHEREAS, the Authority has established the Authority PACE Program, which is such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally 1.c Packet Pg. 24 Attachment: c - YGrene Resolution - PACE AB 811 (1256 : PACE Program Resolutions and Agreements) Resolution No. _____(2016 Series) Page 2 made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by execution of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and to assist property owners within the jurisdiction of the City in financing the cost of installing Improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the Authority PACE Program. NOW, THEREFORE, BE IT RESOLVED THAT by the Council of the City of San Luis Obispo as follows: SECTION 1. This City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority PACE Program to finance the installation of the Improvements. SECTION 2. This City Council consents to inclusion in the Authority PACE Program of all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. SECTION 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority PACE Program within the City, and report back periodically to this City Council on the success of such program. SECTION 6. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4). SECTION 7. This Resolution shall take effect immediately upon its adoption. The Cit y Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority. 1.c Packet Pg. 25 Attachment: c - YGrene Resolution - PACE AB 811 (1256 : PACE Program Resolutions and Agreements) Resolution No. _____(2016 Series) Page 3 Upon motion of _______________, seconded by __________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Jon Ansolabehere Interim 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 ______________, _________. ______________________________ Jon Ansolabehere Interim City Clerk 1.c Packet Pg. 26 Attachment: c - YGrene Resolution - PACE AB 811 (1256 : PACE Program Resolutions and Agreements) Resolution No. _____(2016 Series) Page 1 Exhibit A JPA Agreement [to be inserted] 1.c Packet Pg. 27 Attachment: c - YGrene Resolution - PACE AB 811 (1256 : PACE Program Resolutions and Agreements) AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF SAN LUIS OBISPO AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM SERVICES WITH SUCH CITY This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and entered into on the ___day of _____, 2016, by City of San Luis Obispo (“City”) and the Western Riverside Council of Governments (“Authority”) (collectively the “Parties”). RECITALS WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the “Regular Members”). WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the “Improvements”) that are permanently fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority intends to establish a PACE program to be known as the “California HERO Program” pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which will authorize the implementation of a PACE financing program for cities and county throughout the state; and WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an Associate Member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of the City; and 1.d Packet Pg. 28 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) Exhibit A – Joint Powers Amendment Page 2 A - 2 WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA, attached. 2. Associate Membership. By adoption of this JPA Amendment, City shall become an Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights, obligations and liabilities of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except as expressl y provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority’s Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, the right to amend or vote on amendments to the Authority JPA, and the right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. Additionally, the City shall not be responsible for the payment any fees, costs and charges under the JPA. 3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. B. Implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Program within City Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City’s jurisdiction within which contractual assessments may be entered into under the California HERO Program (the “Program Boundaries”), which boundaries may include the entire incorporated territory of the City or a lesser portion thereof. 1.d Packet Pg. 29 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) Exhibit A – Joint Powers Amendment Page 3 A - 3 2. Determination of Eligible Improvements. Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be eligible to be financed under the California HERO Program. 3. Establishment of California HERO Program. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners within the Program Boundaries. 4. Financing the Installation of Eligible Improvements. Authority shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program. 5. Ongoing Administration. Authority shall be responsible for the ongoing administration of the California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the California HERO Program, establishing contracts for residential, commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the California HERO Program, and providing reports as required by Chapter 29. City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions. 1. Withdrawal. City or Authority may withdraw from this JPA Amendment upon six (6) months written notice to the other party; provided, however, if there is outstanding indebtedness of Authority within City no such withdrawl shall affect the Authority’s ability to levy assessments on outstanding voluntary assessment contracts. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw approval for conduct of the California HERO Program within the jurisdictional limits of City upon thirty (30) written notice to WRCOG without liability to the Authority or any affiliated entity. City withdrawal shall not affect the validity of any voluntary assessment contracts (a) entered prior to the date of such withdrawal or (b) entered into after the date of such withdrawal 1.d Packet Pg. 30 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) Exhibit A – Joint Powers Amendment Page 4 A - 4 so long as the applications for such voluntary assessment contracts were submitted to and approved by WRCOG prior to the date of City’s notice of withdrawal. 2. Indemnification and Liability. Authority agrees to accept all responsibility for loss or damage to any person or entity, including the City, and employees, from and against any actions, claims, damages, liabilities, disabilities, or expenses, that may be asserted by any person or entity, including Marketplace Member, that arise out of, pertain to, or relate to the negligent actions or willful misconduct of Authority’s or its agents’, employees’, contractors’, subcontractors’, or invitees’ performance or obligations under this Agreement. Authority agrees to provide a complete defense for any claim or action brought against City employees’, contractors’, subcontractors’, or invitees’ that arise out of , pertain to , or relate to the negligent actions or willful misconduct of Authority under this Agreement. Authority’s obligations under this Section apply whether or not there is concurrent negligence on the City’s part, to the extent required by law, excluding liability due to the City’s conduct. City shall have the right to select its legal counsel at Authority’s expense, subject to Authority’s approval, which shall not be unreasonably withheld. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Aut hority or its agents under workers’ compensation acts, disability benefits acts, or other employee benefit acts. 3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the California HERO Program under this JPA Amendment. 4. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City. 5. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Att: Executive Director City: City of San Luis Obispo 990 Palm Street, Room 1 San Luis Obispo, CA 93401 Att: Katie Lichtig, City Manager City Attorney: City of San Luis Obispo 990 Palm Street, Room 10 San Luis Obispo, CA 93401 Att: J. Christine Dietrick, City Attorney 1.d Packet Pg. 31 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) Exhibit A – Joint Powers Amendment Page 5 A - 5 6. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 7. Successors and Assigns. This JPA Amendment and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld. 8. Attorney’s Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney’s fees and costs. 9. Governing Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 10. No Third Party Beneficiaries. This JPA Amendment shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11. Severability. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment. 12. Headings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 13. Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect. 14. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. 1.d Packet Pg. 32 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) Exhibit A – Joint Powers Amendment Page 6 A - 6 IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS By: ____________________________________ Date: _______________________ Executive Committee Chair Western Riverside Council of Governments CITY OF SAN LUIS OBISPO By: ____________________________________ Date: _______________________ Title: ____________________________________ Approved as to form: By: ____________________________________ Date: _______________________ J. Christine Dietrick, City Attorney 1.d Packet Pg. 33 Attachment: d - HERO Agreement (Exhibit A - JPA Amendment) (1256 : PACE Program Resolutions and Agreements) CALIFORNIA HOME FINANCE AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (Original date July 1, 1993 and as last amended and restated December 10, 2014) THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is entered into by and among the counties listed on Attachment 1 hereof and incorporated herein by reference. All such counties are referred to herein as "Members" with the respective powers, privileges and restrictions provided herein. RECITALS A. WHEREAS, the California Rural Home Mortgage Finance Authority (“CRHMFA”) was created by a Joint Exercise of Powers Agreement dated July 1, 1993 pursuant to the Joint Exercise of Powers Act (commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”). By Resolution 2003-02, adopted on January 15, 2003, the name of the authority was changed to CRHMFA Homebuyers Fund. The most recent amendment to the Joint Exercise of Powers Agreement was on January 28, 2004. B. WHEREAS, the Members of CRHMFA Homebuyers Fund desire to update, reaffirm, clarify and revise certain provisions of the joint powers agreement, including the renaming of the joint powers authority, as set forth herein. C. WHEREAS, the Members are each empowered by law to finance the construction, acquisition, improvement and rehabilitation of real property. D. WHEREAS, by this Agreement, the Members desire to create and establish a joint powers authority to exercise their respective powers for the purpose of financing the construction, acquisition, improvement and rehabilitation of real property within the jurisdiction of the Authority as authorized by the Act. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Members individually and collectively agree as follows: 1. Definitions Unless the context otherwise requires, the following terms shall for purposes of this Agreement have the meanings specified below: "Act" means the Joint Exercise of Powers Act, commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, including the Marks-Roos Local Bond Pooling Act of 1985, as amended. "Agreement" means this Joint Exercise of Powers Agreement, as the same now exists or as it may from time to time be amended as provided herein. 1.e Packet Pg. 34 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) "Associate Member" means a county, city or other public agency which is not a voting member of the Rural County Representatives of California, a California nonprofit corporation (“RCRC”), with legal power and authority similar to that of the Members, admitted pursuant to paragraph 4.d. below to associate membership herein by vote of the Board. “Audit Committee” means a committee made up of the nine-member Executive Committee. "Authority" means California Home Finance Authority (“CHF”), formerly known as CRHMFA Homebuyers Fund or California Rural Home Mortgage Finance Authority. "Board" means the governing board of the Authority as described in Section 7 below. "Bonds" means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other obligation within the meaning of the term "Bonds" under the Act. “Delegate” means the Supervisor designated by the governing board of each Member to serve on the Board of the Authority. “Executive Committee” means the nine-member Executive Committee of the Board established pursuant to Section 10 hereof. "Member" means any county which is a member of RCRC, has executed this Agreement and has become a member of the Authority. “Obligations” means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other financial or legal obligation of the Authority under the Act. “Program” or “Project” means any work, improvement, program, project or service undertaken by the Authority. "Rural County Representatives of California" or “RCRC” means the nonprofit entity incorporated under that name in the State of California. “Supervisor” means an elected County Supervisor from an RCRC member county. 2. Purpose The purpose of the Authority is to provide financing for the acquisition, construction, , improvement and rehabilitation of real property in accordance with applicable provisions of law for the benefit of residents and communities. In pursuit of this purpose, this Agreement provides for the joint exercise of powers common to any of its Members and Associate Members as provided herein, or otherwise authorized by the Act and other applicable laws, including assisting 1.e Packet Pg. 35 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) in financing as authorized herein, jointly exercised in the manner set forth herein. 3. Principal Place of Business The principal office of the Authority shall be 1215 K Street, Suite 1650, Sacramento, California 95814. 4. Creation of Authority; Addition of Members or Associate Members a. The Authority is hereby created pursuant to the Act. As provided in the Act, the Authority shall be a public entity separate and distinct from the Members or Associate Members. b. The Authority will cause a notice of this Agreement or any amendment hereto to be prepared and filed with the office of the Secretary of State of California in a timely fashion in the manner set forth in Section 6503.3 of the Act. c. A county that is a member of RCRC may petition to become a member of the Authority by submitting to the Board a resolution or evidence of other formal action taken by its governing body adopting this Agreement. The Board shall review the petition for membership and shall vote to approve or disapprove the petition. If the petition is approved by a majority of the Board, such county shall immediately become a Member of the Authority. d. An Associate Member may be added to the Authority upon the affirmative approval of its respective governing board and pursuant to action by the Authority Board upon such terms and conditions, and with such rights, privileges and responsibilities, as may be established from time to time by the Board. Such terms and conditions, and rights, privileges and responsibilities may vary among the Associate Members. Associate Members shall be entitled to participate in one or more programs of the Authority as determined by the Board, but shall not be voting members of the Board. The Executive Director of the Authority shall enforce the terms and conditions for prospective Associate Members to the Authority as provided by resolution of the Board and as amended from time to time by the Board. Changes in the terms and conditions for Associate Membership by the Board will not constitute an amendment of this Agreement. 5. Term and Termination of Powers This Agreement shall become effective from the date hereof until the earlier of the time when all Bonds and any interest thereon shall have been paid in full, or provision for such payment shall have been made, or when the Authority shall no longer own or hold any interest in a public capital improvement or program. The Authority shall continue to exercise the powers herein conferred upon it until termination of this Agreement, except that if any Bonds are issued and delivered, in no event shall the exercise of the powers herein granted be terminated until all Bonds so issued and delivered and the interest thereon shall have been paid or provision for such payment shall have been made and any other debt incurred with respect to any other financing program established or administered by the Authority has been repaid in full and is no longer outstanding. 6. Powers; Restriction upon Exercise 1.e Packet Pg. 36 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) a. To effectuate its purpose, the Authority shall have the power to exercise any and all powers of the Members or of a joint powers authority under the Act and other applicable provisions of law, subject, however, to the conditions and restrictions herein contained. Each Member or Associate Member may also separately exercise any and all such powers. The powers of the Authority are limited to those of a general law county. b. The Authority may adopt, from time to time, such resolutions, guidelines, rules and regulations for the conduct of its meetings and the activities of the Authority as it deems necessary or desirable to accomplish its purpose. c. The Authority shall have the power to finance the construction, acquisition, improvement and rehabilitation of real property, including the power to purchase, with the amounts received or to be received by it pursuant to a bond purchase agreement, bonds issued by any of its Members or Associate Members and other local agencies at public or negotiated sale, for the purpose set forth herein and in accordance with the Act. All or any part of such bonds so purchased may be held by the Authority or resold to public or private purchasers at public or negotiated sale. The Authority shall set any other terms and conditions of any purchase or sale contemplated herein as it deems necessary or convenient and in furtherance of the Act. The Authority may issue or cause to be issued Bonds or other indebtedness, and pledge any of its property or revenues as security to the extent permitted by resolution of the Board under any applicable provision of law. The Authority may issue Bonds in accordance with the Act in order to raise funds necessary to effectuate its purpose hereunder and may enter into agreements to secure such Bonds. The Authority may issue other forms of indebtedness authorized by the Act, and to secure such debt, to further such purpose. The Authority may utilize other forms of capital, including, but not limited to, the Authority’s internal resources, capital markets and other forms of private capital investment authorized by the Act.. d. The Authority is hereby authorized to do all acts necessary for the exercise of its powers, including, but not limited to: (1) executing contracts, (2) employing agents, consultants and employees, (3) acquiring, constructing or providing for maintenance and operation of any building, work or improvement, (4) acquiring, holding or disposing of real or personal property wherever located, including property subject to mortgage, (5) incurring debts, liabilities or obligations, (6) receiving gifts, contributions and donations of property, funds, services and any other forms of assistance from persons, firms, corporations or governmental entities, (7) suing and being sued in its own name, and litigating or settling any suits or claims, (8) doing any and all things necessary or convenient to the exercise of its specific powers and to accomplishing its purpose (9) establishing and/or administering districts to finance and refinance the acquisition, installation and improvement of energy efficiency, water 1.e Packet Pg. 37 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) conservation and renewable energy improvements to or on real property and in buildings. The Authority may enter into one or more agreements, including without limitation, participation agreements and implementation agreements to implement such programs. e. Subject to the applicable provisions of any indenture or resolution providing for the investment of monies held thereunder, the Authority shall have the power to invest any of its funds as the Board deems advisable, in the same manner and upon the same conditions as local agencies pursuant to Section 53601 of the Government Code of the State of California. f. All property, equipment, supplies, funds and records of the Authority shall be owned by the Authority, except as may be provided otherwise herein or by resolution of the Board. g. Pursuant to the provisions of Section 6508.1 of the Act, the debts, liabilities and obligations of the Authority shall not be debts, liabilities and obligations of the Members or Associate Members. Any Bonds, together with any interest and premium thereon, shall not constitute debts, liabilities or obligations of any Member. The Members or Associate Members hereby agree that any such Bonds issued by the Authority shall not constitute general obligations of the Authority but shall be payable solely from the moneys pledged to the repayment of principal or interest on such Bonds under the terms of the resolution, indenture, trust, agreement or other instrument pursuant to which such Bonds are issued. Neither the Members or Associate Members nor the Authority shall be obligated to pay the principal of or premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members or Associate Members or the Authority shall be pledged to the payment of the principal of or premium, if any, or interest on the Bonds, nor shall the Members or Associate Members of the Authority be obligated in any manner to make any appropriation for such payment. No covenant or agreement contained in any Bond shall be deemed to be a covenant or agreement of any Delegate, or any officer, agent or employee of the Authority in an individual capacity, and neither the Board nor any officer thereof executing the Bonds or any document related thereto shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds. 7. Governing Board a. The Board shall consist of the number of Delegates equal to one representative from each Member. b. The governing body of each Member shall appoint one of its Supervisors to serve as a Delegate on the Board. A Member’s appointment of its Delegate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until he or she is replaced by such governing body or no longer a Supervisor; any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph b.. c. The governing body of each Member of the Board shall appoint a Supervisor as an alternate to serve on the Board in the absence of the Delegate; the alternate may exercise all the 1.e Packet Pg. 38 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) rights and privileges of the Delegate, including the right to be counted in constituting a quorum, to participate in the proceedings of the Board, and to vote upon any and all matters. No alternate may have more than one vote at any meeting of the Board, and any Member’s designation of an alternate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until such alternate is replaced by his or her governing body or is no longer a Supervisor, unless otherwise specified in such appointment. Any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph c.. d. Any person who is not a member of the governing body of a Member and who attends a meeting on behalf of such Member may not vote or be counted toward a quorum but may, at the discretion of the Chair, participate in open meetings he or she attends. e. Each Associate Member may designate a non-voting representative to the Board who may not be counted toward a quorum but who may attend open meetings, propose agenda items and otherwise participate in Board Meetings. f. Delegates shall not receive compensation for serving as Delegates, but may claim and receive reimbursement for expenses actually incurred in connection with such service pursuant to rules approved by the Board and subject to the availability of funds. g. The Board shall have the power, by resolution, to the extent permitted by the Act or any other applicable law, to exercise any powers of the Authority and to delegate any of its functions to the Executive Committee or one or more Delegates, officers or agents of the Authority, and to cause any authorized Delegate, officer or agent to take any actions and execute any documents for and in the name and on behalf of the Board or the Authority. h. The Board may establish such committees as it deems necessary for any lawful purpose; such committees are advisory only and may not act or purport to act on behalf of the Board or the Authority. i. The Board shall develop, or cause to be developed, and review, modify as necessary, and adopt each Program. 8. Meetings of the Board a. The Board shall meet at least once annually, but may meet more frequently upon call of any officer or as provided by resolution of the Board. b. Meetings of the Board shall be called, noticed, held and conducted pursuant to the provisions of the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part I of Division 2 of Title 5 of the Government Code of the State of California. c. The Secretary of the Authority shall cause minutes of all meetings of the Board to be taken and distributed to each Member as soon as possible after each meeting. d. The lesser of twelve (12) Delegates or a majority of the number of current Delegates shall constitute a quorum for transacting business at any meeting of the Board, except 1.e Packet Pg. 39 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) that less than a quorum may act to adjourn a meeting. Each Delegate shall have one vote. e. Meetings may be held at any location designated in notice properly given for a meeting and may be conducted by telephonic or similar means in any manner otherwise allowed by law. 9. Officers; Duties; Official Bonds a. The Board shall elect a chair and vice chair from among the Delegates at the Board’s annual meeting who shall serve a term of one (1) year or until their respective successor is elected. The chair shall conduct the meetings of the Board and perform such other duties as may be specified by resolution of the Board. The vice chair shall perform such duties in the absence or in the event of the unavailability of the chair. b. The Board shall contract annually with RCRC to administer the Agreement and to provide administrative services to the Authority, and the President and Chief Executive Officer of RCRC shall serve ex officio as Executive Director, Secretary, Treasurer, and Auditor of the Authority. As chief executive of the Authority, the Executive Director is authorized to execute contracts and other obligations of the Authority, unless prior Board approval is required by a third party, by law or by Board specification, and to perform other duties specified by the Board. The Executive Director may appoint such other officers as may be required for the orderly conduct of the Authority’s business and affairs who shall serve at the pleasure of the Executive Director. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Executive Director, as Treasurer, is designated as the custodian of the Authority’s funds, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. The Executive Director, as Auditor, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. c. The Legislative Advocate for the Authority shall be the Rural County Representatives of California. d. The Treasurer and Auditor are public officers who have charge of, handle, or have access to all property of the Authority, and a bond for such officer in the amount of at least one hundred thousand dollars ($100,000.00) shall be obtained at the expense of the Authority and filed with the Executive Director. Such bond may secure the faithful performance of such officer’s duties with respect to another public office if such bond in at least the same amount specifically mentions the office of the Authority as required herein. The Treasurer and Auditor shall cause periodic independent audits to be made of the Authority’s books by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. e. The business of the Authority shall be conducted under the supervision of the Executive Director by RCRC personnel. 10. Executive Committee of the Authority a. Composition 1.e Packet Pg. 40 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) The Authority shall appoint nine (9) members of its Board to serve on an Executive Committee. b. Powers and Limitations The Executive Committee shall act in an advisory capacity and make recommendations to the Authority Board. Duties will include, but not be limited to, review of the quarterly and annual budgets, service as the Audit Committee for the Authority, periodically review this Agreement; and complete any other tasks as may be assigned by the Board. The Executive Committee shall be subject to all limitations imposed by this Agreement, other applicable law, and resolutions of the Board. c. Quorum A majority of the Executive Committee shall constitute a quorum for transacting business of the Executive Committee. 11. Disposition of Assets Upon termination of this Agreement, all remaining assets and liabilities of the Authority shall be distributed to the respective Members in such manner as shall be determined by the Board and in accordance with the law. 12. Agreement Not Exclusive; Operation in Jurisdiction of Member This Agreement shall not be exclusive, and each Member expressly reserves its rights to carry out other public capital improvements and programs as provided for by law and to issue other obligations for those purposes. This Agreement shall not be deemed to amend or alter the terms of other agreements among the Members or Associate Members. 13. Conflict of Interest Code The Authority shall by resolution adopt a Conflict of Interest Code as required by law. 14. Contributions and Advances Contributions or advances of public funds and of personnel, equipment or property may be made to the Authority by any Member, Associate Member or any other public agency to further the purpose of this Agreement. Payment of public funds may be made to defray the cost of any contribution. Any advance may be made subject to repayment, and in that case shall be repaid in the manner agreed upon by the advancing Member, Associate Member or other public agency and the Authority at the time of making the advance. 15. Fiscal Year; Accounts; Reports; Annual Budget; Administrative Expenses a. The fiscal year of the Authority shall be the period from January 1 of each year to and including the following December 31, except for any partial fiscal year resulting from a change 1.e Packet Pg. 41 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) in accounting based on a different fiscal year previously. b. Prior to the beginning of each fiscal year, the Board shall adopt a budget for the succeeding fiscal year. c. The Authority shall establish and maintain such funds and accounts as may be required by generally accepted accounting principles. The books and records of the Authority are public records and shall be open to inspection at all reasonable times by each Member and its representatives. d. The Auditor shall either make, or contract with a certified public accountant or public accountant to make, an annual audit of the accounts and records of the Authority. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California, and shall conform to generally accepted auditing standards. When an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member (and also with the auditor of Sacramento County as the county in which the Authority’s office is located) within 12 months after the end of the fiscal year. e. In any year in which the annual budget of the Authority does not exceed five thousand dollars ($5,000.00), the Board may, upon unanimous approval of the Board, replace the annual audit with an ensuing one-year period, but in no event for a period longer than two fiscal years. 16. Duties of Members or Associate Members; Breach If any Member or Associate Member shall default in performing any covenant contained herein, such default shall not excuse that Member or Associate Member from fulfilling its other obligations hereunder, and such defaulting Member or Associate Member shall remain liable for the performance of all covenants hereof. Each Member or Associate Member hereby declares that this Agreement is entered into for the benefit of the Authority created hereby, and each Member or Associate Member hereby grants to the Authority the right to enforce, by whatever lawful means the Authority deems appropriate, all of the obligations of each of the parties hereunder. Each and all of the remedies given to the Authority hereunder or by any la w now or hereafter enacted are cumulative, and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. 17. Indemnification To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Board Delegate, alternate, officer, consultant, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Delegate, alternate, officer, consultant, employee or other agent of the Authority. Such indemnification may be made against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal 1.e Packet Pg. 42 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) proceeding, had no reasonable cause to believe his or her conduct was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. 18. Immunities All of the privileges and immunities from liabilities, exemptions from law, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activity of officers, agents or employees of any of the Members or Associate Members when performing their respective functions, shall apply to them to the same degree and extent while engaged as Delegates or otherwise as an officer, agent or other representative of the Authority or while engaged in the performance of any of their functions or duties under the provisions of this Agreement. 19. Amendment This Agreement may be amended by the adoption of the amendment by the governing bodies of a majority of the Members. The amendment shall become effective on the first day of the month following the last required member agency approval. An amendment may be initiated by the Board, upon approval by a majority of the Board. Any proposed amendment, including the text of the proposed change, shall be given by the Board to each Member’s Delegate for presentation and action by each Member's board within 60 days, which time may be extended by the Board. The list of Members, Attachment 1, may be updated to reflect new and/or withdrawn Members without requiring formal amendment of the Agreement by the Authority Board of Directors. 20. Withdrawal of Member or Associate Member If a Member withdraws as member of RCRC, its membership in the Authority shall automatically terminate. A Member or Associate Member may withdraw from this Agreement upon written notice to the Board; provided however, that no such withdrawal shall result in the dissolution of the Authority as long as any Bonds or other obligations of the Authority remain outstanding. Any such withdrawal shall become effective thirty (30) days after a resolution adopted by the Member's governing body which authorizes withdrawal is received by the Authority. Notwithstanding the foregoing, any termination of membership or withdrawal from the Authority shall not operate to relieve any terminated or withdrawing Member or Associate Member from Obligations incurred by such terminated or withdrawing Member or Associate Member prior to the time of its termination or withdrawal. 20. Miscellaneous a. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. b. Construction. The section headings herein are for convenience only and are not to 1.e Packet Pg. 43 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) be construed as modifying or governing the language in the section referred to. c. Approvals. Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. d. Jurisdiction; Venue. This Agreement is made in the State of California, under the Constitution and laws of such State and is to be so construed; any action to enforce or interpret its terms shall be brought in Sacramento County, California. e. Integration. This Agreement is the complete and exclusive statement of the agreement among the parties hereto, and it supersedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the parties relating to the subject matter of this Agreement. f. Successors; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the Board. g. Severability. Should any part, term or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. The parties hereto have caused this Agreement to be executed and attested by their properly authorized officers. AS ADOPTED BY THE MEMBERS: Originally dated July 1, 1993 Amended and restated December 10, 1998 Amended and restated February 18, 1999 Amended and restated September 18, 2002 Amended and restated January 28, 2004 Amended and restated December 10, 2014 [SIGNATURES ON FOLLOWING PAGES] 1.e Packet Pg. 44 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS NAME OF COUNTY OR CITY: Dated: By: Name: Title: Attest: By [Clerk of the Board Supervisors or City Clerk] AFTER EXECUTION, PLEASE SEND TO: YGRENE ENERGY FUND ATTN: LEGAL DEPARTMENT 815 5TH STREET SANTA ROSA CA 95404 82671.00000\9603861.1 1.e Packet Pg. 45 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) ATTACHMENT 1 CALIFORNIA HOME FINANCE AUTHORITY MEMBERS As of December 10, 2014 Alpine County Amador County Butte County Calaveras County Colusa County Del Norte County El Dorado County Glenn County Humboldt County Imperial County Inyo County Lake County Lassen County Madera County Mariposa County Mendocino County Merced County Modoc County Mono County Napa County Nevada County Placer County Plumas County San Benito County Shasta County Sierra County Siskiyou County Sutter County Tehama County Trinity County Tuolumne County Yolo County Yuba County 1.e Packet Pg. 46 Attachment: e - YGrene Agreement (Exhibit A -JPA Agreement) (1256 : PACE Program Resolutions and Agreements) RESOLUTION NO . 10136 (2009 Series ) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O AUTHORIZING THE CITY TO JOIN THE CALIFORNIAFIRST PROGRAM ; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMEN T AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS , CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEV Y CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY ; AN D AUTHORIZING RELATED ACTION S WHEREAS,the California Statewide Communities Development Authority ("Californi a Communities") is a joint exercise of powers authority the members of which include numerou s cities and counties in the State of California, including the City of San Luis Obispo (the "City"); and WHEREAS,California Communities has established the CaliforniaFIRST program (th e CaliforniaFIRST Program") to allow the financing of certain renewable energy, energ y efficiency and water efficiency improvements (the "Improvements") through the levy o f contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Cod e Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvemen t Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the unpaid contractual assessments ; an d WHEREAS,Chapter 29 provides that assessments may be levied under its provision s only with the free and willing consent of the owner of each lot or parcel on which an assessmen t is levied at the time the assessment is levied ; and WHEREAS,the City desires to allow the owners of property within its jurisdictio n Participating Property Owners") to participate in the CaliforniaFIRST Program and to allo w California Communities to conduct assessment proceedings under Chapter 29 and to issue Bond s under the 1915 Act to finance the Improvements ; and WHEREAS,California Communities will conduct assessment proceedings unde r Chapter 29 and issue Bonds under the 1915 Act to finance Improvements ; an d WHEREAS,there has been presented to this meeting a proposed form of Resolution o f Intention to be adopted by California Communities in connection with such assessmen t proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within which assessments may be levied for the CaliforniaFIRST Program shall include all of th e territory within the City's official boundaries of record (the "Proposed Boundaries"); an d WHEREAS,the City will not be responsible for the conduct of any assessment proceedings ; the levy or collection of assessments or any required remedial action in the case o f delinquencies in such assessment payments ; or the issuance, sale or administration of the Bond s or any other bonds issued in connection with the CaliforniaFIRST Program ; and R 10136 1.f Packet Pg. 47 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) Resolution No . 10136 (2009 Series) Page 2 WHEREAS,pursuant to Government Code Section 6586 .5, a notice of public hearin g has been published once at least five days prior to the date hereof in a newspaper of genera l circulation in the City and a public hearing has been duly conducted by the Council concernin g the significant public benefits of the CaliforniaFIRST Program and the financing of the Improvements . NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s Obispo as follows : SECTION 1 .On the date hereof, the City Council held a public hearing and the Cit y Council hereby finds and declares that the issuance of bonds by California Communities i n connection with the CaliforniaFIRST Program will provide significant public benefits, includin g without limitation, savings in effective interest rate, bond preparation, bond underwriting an d bond issuance costs and reductions in effective user charges levied by water and electricit y providers within the boundaries of the City . SECTION 2 . In connection with the CaliforniaFIRST Program, the City hereb y consents to the conduct of special assessment proceedings by California Communities pursuan t to Chapter 29 on any property within the Proposed Boundaries and the issuance of Bonds under the 1915 Act ; provided, that 1.Such proceedings are conducted pursuant to one or more Resolutions of Intention i n substantially the form of the ROI ; an d 2.The Participating Property Owners, who shall be the legal owners of such property , execute a contract pursuant to Chapter 29 and comply with other applicable provisions o f California law in order to accomplish the valid levy of assessments . SECTION 3 .Pursuant to the requirements of Chapter 29, California Communities ha s prepared and will update from time to time the "Program Report" for the CaliforniaFIRS T Program (the "Program Report"), and California Communities will undertake assessmen t proceedings and the financing of Improvements as set forth in the Program Report . SECTION 4. The appropriate officials and staff of the City are hereby authorized an d directed to make applications for the CaliforniaFIRST program available to all property owner s who wish to finance Improvements ; provided, that California Communities shall be responsibl e for providing such applications and related materials at its own expense . The following staf f persons, together with any other staff persons chosen by the City Manager from time to time, ar e hereby designated as the contact persons for California Communities in connection with th e CaliforniaFIRST Program : Deputy Director of Community Development . SECTION 5.The appropriate officials and staff of the City are hereby authorized an d directed to execute and deliver such closing certificates, requisitions, agreements and relate d documents as are reasonably required by California Communities in accordance with th e Program Report to implement the CaliforniaFIRST Program for Participating Property Owner s and to evidence compliance with the requirements of federal and state law in connection with the 1.f Packet Pg. 48 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) Resolution No . 10136 (2009 Series) Page 3 issuance by California Communities of the Bonds and any other bonds for the CaliforniaFIRST Program . To that end, and pursuant to Treasury Regulations Section 1 .150-2, the staff persons listed in Section 4 above, or other staff person acting in the same capacity for the City with respect to the CaliforniaFIRST Program, are hereby authorized and designated to declare th e official intent of the City with respect to the Improvements to be paid or reimbursed throug h participation in the CaliforniaFIRST Program . SECTION 6 .The appropriate officials and staff of the City are hereby authorized and directed to pay California Communities a fee in an amount not to exceed $12,500, whic h California Communities will use to pay for the costs of implementing the CaliforniaFIRS T Program in the City, including the payment of legal costs incurred in connection with judicia l validation of the CaliforniaFIRST Program . SECTION 7 . This Resolution shall take effect immediately upon its adoption . The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to th e Secretary of California Communities . Upon motion of Council Member Settle, seconded by Council Member Ashbaugh , and on the following vote : AYES :Council Members Ashbaugh, Marx and Settle, Vice Mayor Carter an d Mayor Romero NOES :None ABSENT : Non e The foregoing resolution was adopted this 1 st day of December 2009 . Mayor David F . Romero ATTEST : Elaina Can o City Clerk APPROVED AS TO FORM : Jo't Lowell City Attorney 1.f Packet Pg. 49 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) EXHIBIT A RESOLUTION NO . RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION O F DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERG Y EFFICIENCY AND WATER EFFICIENCY IMPROVEMENT S COUNTY O F WHEREAS,the California Statewide Communities Development Authority ("Californi a Communities") is authorized under the authority granted California Communities pursuant t o Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California i n accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the Stat e of California ("Chapter 29") to authorize assessments to finance the installation of distribute d generation renewable energy sources, energy efficiency and water efficiency improvements that are permanently fixed to real property ("Authorized Improvements"); and WHEREAS,Chapter 29 authorizes California Communities to enter into contractua l assessments to finance the installation of Authorized Improvements in the County of (th e County"); an d WHEREAS,California Communities wishes to declare its intention to establish a CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to whic h California Communities, subject to certain conditions set forth below, would enter int o contractual assessments to finance the installation of Authorized Improvements in the County ; NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communitie s Development Authority, as follows : Section 1 .Findinqs .California Communities hereby finds and declares the following : a)The above recitals are true and correct . b)Energy conservation efforts, including the promotion of energy-related Authorize d Improvements to residential, commercial, industrial, or other real property, are necessary t o address the issue of global climate change and the reduction of greenhouse gas emissions i n the County . c)Water conservation efforts, including the promotion of water-related Authorize d Improvements to residential, commercial, industrial, or other real property, are necessary t o address the issue of chronic water shortages in California . d)The upfront cost of making residential, commercial, industrial, or other rea l property more energy and water efficient, along with the fact that most commercial loans for tha t purpose are due on the sale of the property, prevents many property owners from installin g Authorized Improvements . e)A public purpose will be served by establishing a contractual assessmen t program, to be known as the CaliforniaFIRST Program, pursuant to which Californi a Communities will finance the installation of Authorized Improvements to residential, commercial , industrial, or other real property in the County . Jones Hall, A Professional Law Corporation 11-6-0 0 1 1.f Packet Pg. 50 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) EXHIBIT A Section 2 .Determination of Public Interest .California Communities hereb y determines that (a) it would be convenient, advantageous, and in the public interest to designat e an area, which shall encompass the entire geographic territory within the boundaries of th e County, within which California Communities and property owners within the County may ente r into contractual assessments to finance the installation of Authorized Improvements pursuant t o Chapter 29 and (b) it is in the public interest for California Communities to finance th e installation of Authorized Improvements in the County pursuant to Chapter 29 . Section 3 .Identification of Authorized Improvements .California Communitie s hereby declares that it proposes to make contractual assessment financing available to propert y owners to finance installation of Authorized Improvements, including but not limited to thos e improvements detailed in the Report described in Section 8 below, as that Report may b e amended from time to time . Section 4 .Identification of Boundaries .Contractual assessments may be entered into by property owners located within the entire geographic territory of the County ; provided , however, that California Communities shall not enter into contractual assessments to finance th e installation of Authorized Improvements with the owner of any property in the County unles s requested to do so first by the County if the property is located in unincorporated territory or a cit y if the property is located in incorporated territory and after such city or the County, as applicable , has held a public hearing pursuant to Section 6586 .5 of the Government Code of the State o f California . The form of resolution pursuant to which cities may request California Communitie s to enter into contractual assessments to finance the installation of Authorized Improvements i s attached as Exhibit A . Section 5 .Proposed Financinq Arranqements .Under Chapter 29, Californi a Communities may issue bonds pursuant to Chapter 29 that are payable by contractua l assessments and California Communities may advance its own funds to finance work to b e repaid through contractual assessments, and may from time to time sell bonds to reimburs e itself for such advances . Division 10 (commencing with Section 8500) of the Streets & Highways Code of the State (the "Improvement Bond Act of 1915") shall apply to any bond s issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflic t with Chapter 29 . California Communities shall determine the creditworthiness of a property owner t o participate in the financing of Authorized Improvements based on the criteria developed by th e Program Manager in consultation with the CaliforniaFIRST Program financing team and on fil e with the Secretary . In connection with bonds issued under the Improvement Bond Act of 1915 that ar e payable from contractual assessments, serial and/or term improvement bonds shall be issue d in such series and shall mature in such principal amounts and at such times (not to exceed 2 0 years from the second day of September next following their date) and at such rate or rates o f interest (not to exceed the maximum rate permitted by applicable law) as shall be determine d by California Communities at the time of the issuance and sale of the bonds . The provision s of Part 11 .1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds . It i s the intention of California Communities to create a special reserve fund for the bonds unde r Part 16 of the Improvement Bond Act of 1915 . California Communities will not advanc e available surplus funds from its treasury to cure any deficiency in the redemption fund to b e created with respect to the bonds ; provided, however, that this determination shall not preven t California Communities from, in its sole discretion, so advancing funds . The bonds may be 2 1.f Packet Pg. 51 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) EXHIBIT A refunded under Division 11 .5 of the California Streets and Highways Code or other applicabl e laws permitting refunding of the bonds, upon the conditions specified by and at th e determination of California Communities . California Communities hereby authorizes the Program Manager, upon consultatio n with bond counsel and the CaliforniaFIRST Program underwriter, to provide for the issuanc e of bonds payable from contractual assessments . In connection with the issuance of bonds payable from contractual assessments , California Communities expects to obligate itself, through a covenant with the owners of th e bonds, to exercise its foreclosure rights with respect to delinquent contractual assessmen t installments under specified circumstances . Section 6 .Public Hearinq.Pursuant to the Act, California Communities hereby orders tha t a public hearing be held before this Commission, at , on ,, 2009 at a .m ., for the purposes of allowing interested persons to object to or inquire about th e proposed program or any of its particulars . The public hearing may be continued from time to tim e as determined by the Commission for a time not exceeding a total of 180 days . At the time of the hearing, the Report described in Section 8 below shall be summarize d and the Commission shall afford all persons who are present an opportunity to comment upon , object to, or present evidence with regard to the proposed contractual assessment program, th e extent of the area proposed to be included within the program, the terms and conditions of th e draft Contract described in Section 8 below, or the proposed financing provisions . Following th e public hearing, California Communities may adopt a resolution confirming the Report (th e Resolution Confirming Report") or may direct the Report's modification in any respect, or ma y abandon the proceedings . The Commission hereby orders the Secretary to publish a notice of public hearing once a week for two successive weeks . Two publications in a newspaper published once a week o r more often, with at least five days intervening between the respective publication dates no t counting such publication dates, are sufficient . The period of notice will commence upon the firs t day of publication and terminate at the end of the fourteenth day . The first publication shall occu r not later than 20 days before the date of the public hearing . Section 7 .Notice to Water and Electric Providers .Pursuant to Section 5898 .24 of th e Streets & Highways Code, the Commission hereby orders the Secretary to provide written notic e of the proposed contractual assessment program within the County to all water and electri c providers within the boundaries of the County not less than 60 days prior to adoption of th e Resolution Confirming Report . Section 8.Report.The Commission hereby directs the Program Manager for th e CaliforniaFIRST Program to prepare and file with the Commission a report (the "Report") at o r before the time of the public hearing described in Section 6 above containing all of the following : a)A map showing the boundaries of the territory within which contractua l assessments are proposed to be offered, as set forth in Section 4 above . b)A draft contract (the "Contract") specifying the terms and conditions that would b e agreed to by California Communities and a property owner within the County . The Contract ma y allow property owners to purchase directly the related equipment and materials for th e 3 1.f Packet Pg. 52 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) EXHIBIT A installation of the Authorized Improvements and to contract directly for the installation of suc h Authorized Improvements . c)A statement of California Communities' policies concerning contractua l assessments including all of the following : 1)Identification of types of Authorized Improvements that may be financed through the use of contractual assessments . 2)Identification of California Communities official authorized to enter int o contractual assessments on behalf of California Communities . 3)A maximum aggregate dollar amount of contractual assessments in th e County . 4)A method for setting requests from property owners for financing throug h contractual assessments in priority order in the event that requests appear likely t o exceed the authorization amount . d) A plan for raising a capital amount required to pay for work performed pursuan t to contractual assessments . The plan may include amounts to be advanced by Californi a Communities through funds available to it from any source . The plan may include the sale of a bond or bonds or other financing relationship pursuant to Section 5898 .28 of Chapter 29 . Th e plan shall include a statement of or method for determining the interest rate and time perio d during which contracting property owners would pay any assessment . The plan shall provide fo r any reserve fund or funds . The plan shall provide for the apportionment of all or any portion o f the costs incidental to financing, administration, and collection of the contractual assessmen t program among the consenting property owners and California Communities . e) A report on the results of the consultations with the County Auditor-Controlle r described in Section 10 below concerning the additional fees, if any, that will be charged t o California Communities for incorporating the proposed contractual assessments into th e assessments of the general taxes of the County on real property, and a plan for financing th e payment of those fees . Section 9 .Nature of Assessments .Assessments levied pursuant to Chapter 29, an d the interest and any penalties thereon, will constitute a lien against the lots and parcels of lan d on which they are made, until they are paid . Unless otherwise directed by Californi a Communities, the assessments shall be collected in the same manner and at the same tim e as the general taxes of the County on real property are payable, and subject to the sam e penalties and remedies and lien priorities in the event of delinquency and default . Section 10 .Consultations with County Auditor-Controller .California Communitie s hereby directs the Program Manager to enter into consultations with the County Auditor - Controller in order to reach agreement on what additional fees, if any, will be charged t o California Communities for incorporating the proposed contractual assessments into th e assessments of the general taxes of the County on real property . Section 11 .Preparation of Current Roll of Assessment .Pursuant to Sectio n 5898 .24(c), California Communities hereby designates the Program Manager (or his/he r designee) as the responsible official for annually preparing the current roll of assessmen t 4 1.f Packet Pg. 53 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) EXHIBIT A obligations by assessor's parcel number on property subject to a voluntary contractua l assessment . Section 12 .Procedures for Responding to Inquiries .The Program Manager shal l establish procedures to promptly respond to inquiries concerning current and future estimate d liability for a voluntary contractual assessment . Section 13 .Professionals Appointed .California Communities hereby appoints Jones Hall, A Professional Law Corporation, San Francisco, California, as bond counsel to Californi a Communities in connection with the CaliforniaFIRST Program . The Program Manager is hereb y authorized and directed to enter into appropriate agreements with such firm for its services t o California Communities in connection with the matters addressed in this Resolution . Section 14 .Effective Date .This resolution shall take effect immediately upon it s adoption . PASSED AND ADOPTED by the California Statewide Communities Developmen t Authority this , 2010 . I, the undersigned, the duly appointed, and qualified member of the Commission of th e California Statewide Communities Development Authority, DO HEREBY CERTIFY that th e foregoing resolution was duly adopted by the Commission of said Authority at a duly calle d meeting of the Commission of said Authority held in accordance with law on , 2010 . By : Membe r 5 1.f Packet Pg. 54 Attachment: f - CaliforniaFIRST Resolution_Signed (1256 : PACE Program Resolutions and Agreements) Page intentionally left blank. San Luis Obispo Page 1 Tuesday, January 5, 2016 Regular Meeting of the City Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, January 5, 2016 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx. Council Members Absent: None City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and John Paul Maier, Assistant City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Council Member Rivoire led the Pledge of Allegiance. PRESENTATION 1. PRESENTATION BY FIRE CHIEF OLSON AND PUBLIC WORKS DIRECTOR GRIGSBY, REGARDING WINTER STORM PREPAREDNESS Fire Chief Olson and Public Works Director Grigsby made a presentation entitled “Winter Weather Preparedness,” reviewed the contents of the City’s website section entitled “slocity.org/prepared” and presented a video entitled “Storm Prep.” 5.a Packet Pg. 55 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) San Luis Obispo City Council Minutes of January 5, 2016 Page 2 2. PRESENTATION BY DEREK JOHNSON, ASSISTANT CITY MANAGER AND INTERIM FINANCE & IT DIRECTOR, REGARDING THE GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) BUDGET PRESENTATION AWARD FOR 2015-17 FINANCIAL PLAN Assistant City Manager and Interim Finance & IT Director Johnson announced the acceptance of the “Government Finance Officers Association Budget Award” for the 2015- 17 Financial Plan. APPOINTMENTS 3. COUNCIL LIAISON SUBCOMMITTEE APPOINTMENTS 2016 Interim City Clerk Ansolabehere and Assistant City Clerk Maier reviewed the contents of the report. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY VICE MAYOR CARPENTER, CARRIED 5-0, to approve the City Council Liaison Subcommittee assignments for calendar year 2016 as outlined in the 2016 Subcommittee Assignment Roster amended as follows: 1. Council Member Ashbaugh is assigned to the Economic Vitality Corporation in the place of Council Member Christianson. 2. Council Member Rivoire is assigned to the Personnel Board in the place of Council Member Christianson. 3. Council Member Rivoire is assigned to the Promotional Coordinating Committee in the place of Council Member Christianson. PUBLIC COMMENT PERIOD Steve Barasch, San Luis Obispo, expressed concerns regarding creek and flood control maintenance; stated that he submitted a letter to the City regarding a potential liability for flood damage that may occur on several of his properties; opined that the City cannot push the liability onto private property owners when the owners have knowledge of a potential flood problem; stated that he put the City on notice. Don Hedrick, San Luis Obispo, expressed gratitude for the holiday season generosities; spoke about a video presentation at a prior Council meeting; stated that there have been deficiencies of having no audio or video during presentations. Martin Meltz, Pismo Beach, stated that he is an advocate for the homeless; read a letter regarding the health and safety of the City’s residents and homeless population; spoke about the “Declaration of a Shelter Crisis” section in CA Government Code 8698-8698.2; urged Council to declare a shelter crisis and make City facilities and staff available for the emergency facility. 5.a Packet Pg. 56 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) San Luis Obispo City Council Minutes of January 5, 2016 Page 3 In response to public comment regarding creek and flood control maintenance, City Manager Lichtig advised that staff inspected the City’s creeks and mitigated any potential hazards. In response to public comment, Community Development Director Codron summarized a brief history of the Prado Day Center; explained that since 2010 when the warming center opened, there has never been more than 40 people at the shelter at one time; stated that at this time there is not a lack of shelter space, noting that the City has several overflow sites in the community; stated that the only constraints at this time are with the volunteers; explained that staff is taking a collaborated approach with both the county and other agencies; explained that the City’s resolution does not limit the amount of days that the Prado Day Center can be open. CONSENT AGENDA MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to approve Consent Calendar Items 4 thru 10, with the removal of Item 9 for separate consideration. 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 5. SCHEDULE OF CITY COUNCIL MEETINGS FOR 2016 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to cancel the Regular City Council meetings of August 2 and December 20, 2016. 6. EMERSON PROCESSING – MAINTENANCE AND SUPPORT CONTRACT EXTENSION MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to approve an extension of maintenance and support contract agreement with Emerson Process Management for two years in the amount of $64,050 and authorize the Mayor to execute the agreement. 7. FIRE STATION 2 REMODEL, SPECIFICATION NO. 91258 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to: 1. Approve plans and specifications for “Fire Station 2 Remodel, Specification No. 91258.” 2. Authorize staff to advertise for bids and authorize the City Manager to award the contract if the lowest responsible bidder is within the Engineer’s Estimate of $129,000. 5.a Packet Pg. 57 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) San Luis Obispo City Council Minutes of January 5, 2016 Page 4 8. LOS OSOS VALLEY ROAD/US 101 INTERCHANGE IMPROVEMENT PROJECT, SPECIFICATION NO. 99821 - CONTINGENCY BUDGET UPDATE MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to: 1. Authorize an $800,000 increase to the US 101/LOVR Interchange project contingency budget to cover anticipated additional contract change orders (CCO’s), including repaving approximately 0.75 miles of Calle Joaquin. 2. Authorize the City Engineer to be responsible for construction CCO’s for the US 101 / LOVR Interchange Project in any amount with the limitation that the sum total of all CCO’s not exceed the budgeted contingency amount of $2,050,000. 9. RECYCLED WATER FACILITIES PLANNING STUDY Utilities Deputy Director Hix reviewed questions regarding alternatives and responded to Council inquires. MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER ASHBAUGH, CARRIED 5-0, to approve an agreement with Water Systems Consultants (WSC) for development of a Recycled Water Facilities Planning Study in an amount not to exceed $150,000. 10. REVIEW OF A MILLS ACT CONTRACT FOR THE FALKENSTEIN HOUSE AT 1445 BROAD STREET (APPLICATION HIST-1990-2015) MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10684 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City of San Luis Obispo and owners of the Falkenstein house at 1445 Broad Street,” under the terms described in the contract. PUBLIC HEARINGS 11. REVIEW OF CLEANUP AMENDMENTS TO TITLE 10 (VEHICLES & TRAFFIC) OF THE MUNICIPAL CODE - ORDINANCE INTRODUCTION Transportation Manager Hudson and Transportation Planner/Engineer Wheeler narrated a PowerPoint presentation entitled “Municipal Code Title 10: Vehicles and Traffic Cleanup Amendments,” and reviewed the contents of the report. Mayor Marx opened and closed the Public Hearing, there being no one desiring to speak on this item. 5.a Packet Pg. 58 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) San Luis Obispo City Council Minutes of January 5, 2016 Page 5 MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to introduce Ordinance 1628 (2016 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 regarding Vehicles and Traffic,” to reflect the current organizational structure within the City’s Public Works Department. BUSINESS ITEMS 12. 2014 TRAFFIC SAFETY REPORT Transportation Manager Hudson and Transportation Planner/Engineer Wheeler narrated a PowerPoint presentation entitled “2014 Annual Traffic Safety Report,” and reviewed the contents of the report and responded to Council inquiries. Donald Hedrick, San Luis Obispo, opined that he would like to see more public input as it relates to the City’s traffic safety studies; spoke about the excessive traffic on Sacramento Drive; opined that there should be safety signs posted on bridges especially when they are narrow. In response to public comment, Transportation Manager Hudson advised that staff is working on resealing and widening the bridge on Prado Road, noting that the project is in the design and environmental analysis phase. Public Works Deputy Director Bochum noted that there is a traffic engineering hotline for public input. MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY COUNCIL MEMBER ASHBAUGH, CARRIED 5-0, to receive and file the 2014 Traffic Safety Report. 13. LOCAL HAZARD MITIGATION ACTION UPDATE Fire Chief Olson and Administrative Analyst Cox narrated a PowerPoint presentation entitled “Local Hazard Mitigation Action Update” and reviewed the contents of the report. Donald Hedrick, San Luis Obispo, voiced concerns regarding staff’s recommendation; opined that that words “receive and file” does not provide the public with enough information about the report. MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to receive and file the 2014 Local Hazard Mitigation Plan Action Update. LIAISON REPORTS Council Member Ashbaugh announced that the Friends of Prado Day Center will be hosting an event on February 6, 2016 at the Veterans Hall. COUNCIL COMMUNICATIONS None. 5.a Packet Pg. 59 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) San Luis Obispo City Council Minutes of January 5, 2016 Page 6 ADJOURNMENT Regular City Council Meetings are scheduled for Tuesday, January 19, 2016 at 4:00 p.m. and 6:00 p.m., in the Council Chamber, respectively, 990 Palm Street, San Luis Obispo, California. __________________________ Jon Ansolabehere Interim City Clerk APPROVED BY COUNCIL: XX/XX/2016 5.a Packet Pg. 60 Attachment: a - 01-05-2016 Minutes (1270 : Minutes of January 5, 2016) Meeting Date: 2/16/2016 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Planning Technician SUBJECT: HOUSING AUTHORITY REQUEST TO REASSIGN AND EXTEND LEASE FOR CITY OWNED PROPERTY LOCATED AT 1090 AND 1092 ORCUTT ROAD, AND 1105 LAUREL LANE. RECOMMENDATION 1. Approve and authorize the City Manager to execute an Assignment and Assumption of Lease Agreement for City owned property located on Orcutt Road from Laurel Creek Apartments, LP to the Housing Authority of the City of San Luis Obispo; 2. Approve and authorize the City Manager to execute an Amended and Restated Ground Lease with the Housing Authority extending the lease agreement for an additional seventy five years. DISCUSSION Background On April 29, 1991 the City executed a fifty-five year lease with the Housing Authority of the City of San Luis Obispo (the “Housing Authority”) to construct and operate rental housing, affordable to low income seniors and the disabled residents, on City owned property located at 1090 and 1092 Orcutt Road, and 1105 Laurel Lane. The City in turn, agreed to lease the property for such purpose for $1 per year (Attachment E, Original Agreement). The Housing Authority then requested to assign their interest in the original Lease Agreement to their affiliate, the San Luis Obispo Non-Profit Housing Corporation. The lease was transferred on December 1, 1992; the Housing Authority then applied for, and successfully received, $1.2 million in low income housing tax credits to finance the proje ct (Attachment F, First Assignment of Agreement). In 1994, the Housing Authority completed Marvin’s Gardens (now known as Laurel Creek Apartments) a twenty-four unit housing development dedicated to low-income residents. Shortly after completion, the Housing Authority finalized financing arrangements and reassigned the lease for the property from the San Luis Obispo Non-Profit Housing Corporation to Laurel Creek Apartments, a California Limited Partnership (Attachment G, Second Assignment of Agreement). This lease transfer was necessary so the Housing Authority (via San Luis Obispo 6 Packet Pg. 61 Non-Profit Housing Corporation) could collect the $1.2 million in tax credits and secure the mortgage. Lease Reassignment Laurel Creek Apartments, LP is now requesting the lease be reassigned from Laurel Creek Apartments, LP back to the Housing Authority (Attachment A, Amended and Restated Ground Lease). A new lease document has been prepared for this reassignment as the previous lease document was over twenty years old and updated language was necessary based on current tax credit underwriting requirements. This lease reassignment will allow the Housing Authority to apply for low-income housing tax credits to acquire the property from the current Limited Partnership, and to then rehabilitate Laurel Creek Apartments (in addition to two other affordable housing complexes in the City of San Luis Obispo). The property is in need of approximately $984,000 ($41,000 per unit) in capital improvements. Should the Housing Authority be successful in obtaining tax credits later this year, a request will be made to Council to then reassign the Lease Agreement to a new limited partnership. Staff has reviewed the Laurel Creek Apartments, LP request to assign the lease back to the Housing Authority of the City of San Luis Obispo and concluded that the Housing Authority is capable of fulfilling the terms and conditions of the lease agreement. Therefore, staff recommends approval of the assignment so the Housing Authority can move forward with applying for low-income housing tax credits to rehabilitate and preserve the 24 affordable dwelling units. Lease Extension Under California law, the affordable restricted period for tax credit projects is fifty-five years. In order to apply for low-income housing tax credits for rehabilitation of the property, the Housing Authority will be required to restrict Laurel Creek Apartments as affordable for a minimum of fifty-five years. For this and other financing reasons, the Housing Authority is requesting the reassigned lease be extended for an additional seventy-five years. Extending the lease would be a benefit to the City as Laurel Creek Apartments would remain affordable for at least the next seventy-five years. Stated in Section I.B of the original Lease Agreement (Attachment E, Original Agreement), the sole purpose of an extension under this agreement shall be to provide for the continuation of affordable housing to lower income families. Since the purpose of extending the lease to seventy-five years is to apply for tax credits and to secure outside financing to preserve Laurel Creek Apartments, staff recommends approval of the lease extension. Should the needs of the community change after the required fifty-five year tax credit affordability period, modifications or amendments could be proposed to the Lease Agreement which would require Council approval. In addition, a Promissory Note has been prepared for the tax assessor appraised value of the property to provide an additional layer of security for the City (Attachment C, Promissory Note). The Promissory Note also provides an additional incentive to the partnership to operate the 6 Packet Pg. 62 property in accordance with the terms of the lease. Furthermore, the Note benefits the Housing Authority, and the future General Partner of the project, for tax credit application and equity purposes. In the case of a default that is not cured, there is a monetary consequence (value of note) in addition to loss of site control. However, if no event of default occurs, the Note is forgiven in its entirety at the conclusion of the seventy five year maturity date. FISCAL IMPACT Approval of the lease reassignment will not result in any additional costs to the City. By extending the lease for an additional seventy-five years, the City will not be able to sell the property until 2091; however Laurel Creek Apartments will continue to provide much needed affordable rental housing in the City. ALTERNATIVES 1. Do not extend the lease agreement for seventy-five years. This option is not recommended as that could negatively affect the Housing Authority’s chance of obtaining low-income housing tax credits for rehabilitation of the property. Attachments: a - Amended and Restated Ground Lease b - Assignment and Assumption of Lease c - Promissory Note d - Site Map e - Original Agreement A-24-91-CC f - First Assignment of Agreement to San Luis Obispo Non-profit Housing Corporation g - Second Assignment of Agreement to Laurel Creek Apartments, LP 6 Packet Pg. 63 Ground Lease Laurel Creek Apartments 1 AMENDED AND RESTATED GROUND LEASE This Amended and Restated Ground Lease (this “Lease”) is made as of _______________, 2016, by and between the Housing Authority of San Luis Obispo, a public body, corporate and politic (the “Lessee”) and the City of San Luis Obispo, a charter municipal corporation (the “Lessor”) (collectively, the “Parties”). RECITALS A. The Land (as defined below) is subject to that certain Lease Agreement (Agreement A-24-91-CC), dated as of April 29, 1991, between the Lessee and Lessor, a memorandum of which was recorded in the Official Records of San Luis Obispo County, California (the “Official Records”) on September 17, 1993 as Instrument No. 1993-056148 (collectively with all amendments and assignments, the “Original Lease”). Lessee’s interest in the Original Lease was assigned to SLO Non-Profit Housing Corporation (“SLO”) pursuant to an assignment agreement recorded in the Official Records on November 8, 1993, as Instrument No. 1993-069666. SLO’s interest in the Original Lease was subsequently assigned to Laurel Creek Apartments, a California Limited Partnership (“Laurel Creek”) pursuant to an assignment agreement recorded in the Official Records on October 20, 1994, as Instrument No. 1994- 061783, and Laurel Creek’s interest in the Original Lease was then assigned back to Lessee pursuant to an assignment agreement recorded in the Official Records on ______________, 2016, as Instrument No. ______________. B. Pursuant to the terms of the Original Lease, Lessee’s predecessor in interest constructed and operated a multifamily senior housing project consisting of 24 units (the “Development”). C. In anticipation of the future refinancing and rehabilitation of the Property, the Parties hereto desire to amend and restate the Original Lease to modify certain terms set forth therein, and this Lease shall supersede and replace the Original Lease in its entirety. NOW, THEREFORE, in consideration of the promises and the respective covenants and agreements contained in this Lease, the parties hereby agree as follows: ARTICLE 1: DEFINITIONS 1.1. Definitions. The following terms shall have the following meanings in this Lease: (a) “Authorized Officer(s)” shall mean any officer, director, member, manager, employee or agent of a party that has the authority and capacity to act for or represent such party. (b) “Closing Date” shall mean the first date upon which (1) the Initial Rent has been paid to Lessor, (2) Tenant has obtained the right to possess the Land pursuant to this Lease, and (3) all other conditions under Section 3.1 of the have been satisfied (or waived by Lessor in its sole and absolute discretion). 6.a Packet Pg. 64 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 2 (c) “Construction” shall have the meaning assigned in Section 3.1. “Development” shall mean the Improvements and the Lessee’s leasehold interest in the Land. (d) “Dwelling Units” shall mean the 24 units of rental housing to be rehabilitated, leased, operated and maintained in accordance with this Lease. (e) “Improvements” shall mean the buildings, structures (including, without limitation, the Dwelling Units) and other improvements, including the building fixtures therein, now or hereafter located on the Land. (f) “Investor Limited Partner” shall mean the tax credit investor limited partner of a tax credit limited partnership assignee of Lessee, and its successors and assigns. (g) “Land” or “Leased Premises” shall mean the real property located at 1090 and 1092 Orcutt Road and 1105 Laurel Lane, City of San Luis Obispo, County of San Luis Obispo, California, as further described on the attached Exhibit A. (h) “Lease” shall mean this Amended and Restated Ground Lease between the Lessee and the Lessor and shall include any and all amendments made to this Lease. (i) “Lease Term” shall mean the approximately seventy-five (75)-year period as described in Section 2.2 below during which this Lease shall be in effect unless earlier terminated in accordance with the provisions of this Lease. (j) “Lease Year” shall mean a period of one (1) calendar year beginning January 1 and ending December 31. The first Lease Year shall commence on the date of this Lease and end on the last day of the following December. The last Lease Year shall begin on January 1 of that year and end on the last day of this Lease. (k) “Lender” or “Lenders” shall mean each and all of the lenders now or hereafter providing the Loans (as defined in Section 4.1) to the Lessee. (l) “Lien” or “Liens” shall have the meaning assigned in Section 4.2(a). (m) “Loan” or “Loans” shall have the meaning assigned in Section 4.1. (n) “Partnership Agreement” shall mean the partnership agreement of a tax credit limited partnership assignee of Lessee, as amended and/or restated from time to time. (o) “Property” shall mean the Land and Improvements. (p) “Tenant(s)” shall mean the households that lease the Dwelling Units from Lessee. 6.a Packet Pg. 65 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 3 ARTICLE 2. LEASE OF THE LAND; RENTAL PROVISIONS; TAXES AND ASSESSMENTS 2.1. Lease of the Land. The Lessor, for and in consideration of the covenants and agreements to be kept and performed by the Lessee, leases the Land to the Lessee, and in consideration thereof, the Lessee does take, hire and lease the Land from the Lessor pursuant to the terms of this Lease. 2.2. Term. The term of this Lease shall commence on ______________, 2016, and shall continue from such date until ___________________, 20__, unless earlier terminated in accordance with this Lease. Upon execution of this Lease by both Parties, the Original Lease shall be superseded in its entirety by the terms and conditions in this Lease as of the Commencement Date. 2.3. Rent. The Lessee shall pay to the Lessor, at Lessor’s address, as provided in Section 10.2, or such other place as the Lessor may designate in writing, (a) as of the Closing Date, initial rent in the amount of Two Hundred Twenty Six Thousand, Two Hundred Sixty Four Dollars ($226,264.00) (the “Initial Rent”), which the parties have agreed is the fair market value of the leasehold interest, and (b) rent in the annual amount of One Dollar ($1.00) (the “Rent”). Rent shall be paid in advance on or before January 1 of each year during the Lease Term. Lessee may prepay all or any portion of the Rent. The Initial Rent shall be paid by having Lessee execute an unsecured promissory note (the “Note”) in favor of Lessor for the full amount of the Initial Rent. The Note shall not bear interest and all principal shall be due and payable at the end of the 75-year term of the Note. 2.4. Use of Development and Assurances of Lessee. The Lessee agrees and warrants: (a) The Development shall be used only to provide housing for low income seniors and disabled persons as follows: all of the Dwelling Units (other than one (1) manager’s unit) shall be rented to “low income households” as defined in Section 50079.5 of the California Health & Safety Code; (b) That the Lessee will use commercially reasonable efforts to prevent any Tenant from committing or maintaining any nuisance or unlawful conduct on or about the Development and that the Lessee will not itself use the Development for any disorderly or unlawful purpose; (c) That the Lessee will use commercially reasonable efforts to prevent any Tenant from violating any of the covenants and conditions of this Lease with respect to the Development; (d) That the Lessee will take commercially reasonable action, if necessary, to abate any violation of this Lease by any Tenant upon notice from the Lessor; (e) The Lessee shall comply with, at its sole cost and expense, any documents, agreements, covenants and restrictions recorded against the Land senior to the Memorandum of Ground Lease, including, without limitation, those relating to environmental remediation and 6.a Packet Pg. 66 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 4 inspection; (f) Subject to any applicable laws of the State of California and the rights of Tenants, that the Lessee will permit the Lessor and its agents to inspect the Development or any part thereof at any reasonable time during the Lease Term; and (g) Subject to the rights to contest the same set forth elsewhere in this Lease, that the Lessee shall keep the Property free from any and all liens and encumbrances, except those set forth in Section 4.2 or as otherwise approved by Lessor in its sole discretion. 2.5. Taxes and Assessments. (a) Payment of Taxes and Assessments. Except as provided in Section 2.5(e), the Lessee covenants and agrees during the entire Lease Term, at its own cost and expense, to pay the public officers charged with their collection, prior to delinquency and before any fine, penalty, interest, or other charge may be added to them for non-payment, all real estate taxes, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of any kind and nature, made, assessed, levied or imposed upon, or due and payable in connection with, or which become a lien upon, the Land, the Improvements, or any part of the Land or Improvements, or upon this Lease, as well as assessments for sidewalks, streets, sewers, water, or any other public improvements and any other improvements or benefits which shall, during the Lease Term, be made, assessed, levied, or imposed upon or become due and payable in connection with, or a lien upon the Land, the Improvements, or any part of the Land or Improvements, or upon this Lease. The Lessee shall have the right to obtain, and shall have the sole responsibility for obtaining, any affordable housing property tax exemption for such Land and Improvements which Lessee may elect to obtain. Lessor hereby agrees that Lessor shall not agree to any assessment or additional real property taxes without the consent of Lessee. (b) Payment of Fees. Except as provided in Section 2.5(e), the Lessee covenants and agrees during the entire Lease Term, at its own cost and expense, to pay, prior to delinquency and before any fine, penalty, interest, or other charge may be added to them for non- payment, all license and permit fees, charges for public utilities of any kind, and any and all governmental charges relating to the use or occupancy of the Improvements. (c) Copies of Notices to Lessee. The Lessor agrees to send to the Lessee and designated Lenders copies of any and all notices received by it in respect to any taxes, assessments, charges, or fees for which the Lessee is liable pursuant to this Section 2.5. (d) Lessee’s Right to Contest. If the Lessee disputes the amount or validity of any liens, taxes, assessments, charges, penalties or claims, including liens or claims of materialmen, mechanics or laborers, upon the Land or the Improvements, regardless of whether such amounts are payable by the Lessor or the Lessee, the Lessee may contest and defend against the same at its cost, and in good faith diligently conduct any necessary proceedings in connection therewith to prevent and avoid the same; provided, however, that such contest shall be prosecuted to a final conclusion as speedily as reasonably possible. The Lessor agrees to render to the Lessee all reasonable assistance, at no expense to the Lessor, in contesting the validity or 6.a Packet Pg. 67 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 5 amount of any such taxes, assessments or charges, including joining in the signing of any protests or pleadings which the Lessee may deem advisable to file. During any such contest, the Lessee shall (by the payment of such disputed taxes, assessments, or charges, if necessary) prevent any advertisement of tax sale, any foreclosure of, or any divesting thereby of the Lessor’s title, reversionary interest or other interest in or to the Land. (e) Lessor Obligations. The provisions of this Lease shall not be deemed to require the Lessee to pay any municipal, county, state, or federal income or gross receipts or excess profits taxes assessed against the Lessor, or any municipal, county, state, or federal capital levy, estate, succession, inheritance, gift or transfer taxes of the Lessor, or franchise taxes imposed upon any owner in fee of the Land. Any rebate made on account of any taxes or charges paid by the Lessor and not reimbursed by the Lessee shall belong and be paid to the Lessor; otherwise such rebate shall belong to the Lessee. 2.6. Assignment of Lessee’s Leasehold Interest. Except for assignments to an affiliate of Lessee or to a limited partnership in which Lessee or its affiliate is the sole general partner, the Lessee may not assign its interest in this Lease without the prior written consent of the Lessor, which consent may be withheld in its sole discretion. ARTICLE 3: MAINTENANCE; USE OF PREMISES 3.1. Title to Improvements and Liens Thereon. Title to the Improvements on the Land shall be granted to Lessee pursuant to a grant deed in the form attached hereto as Exhibit C recorded in the Official Records on the Closing Date; provided, however, that the Lessee shall have no right to destroy, demolish or remove the Improvements except as specifically provided for in this Lease or as approved in writing by the Lessor, which may be withheld in Lessor’s sole and absolute discretion. It is the intent of the parties hereto that this Lease shall create a constructive notice of severance of the Improvements from the Land. 3.2. Permits, Licenses and Easements. The Lessor agrees that, within ten (10) days after receipt of written request from the Lessee, it shall (at no expense to the Lessor) join in any and all applications for permits, licenses or other authorizations required by any governmental or other body claiming jurisdiction in connection with any work the Lessee may do pursuant to this Lease, and shall also join in any grants of easements for public utilities useful or necessary to the proper economic development of the Land or of the Improvements, provided that such work or grants are consistent with the plans previously approved by the Lessor for the Development. 3.3. Use of Development. The Lessee shall at all times during the Lease Term use or cause the Development to be used for the purposes set forth in this Lease, consistent with all applicable zoning and environmental laws of any governmental authority having jurisdiction over the Development. Subject to the next sentence, the Lessee agrees to comply with all applicable and lawful statutes, rules, orders, ordinances, requirements and regulations of the United States, the State of California, and of any other governmental authority having jurisdiction over the Development. The Lessee may, in good faith and on reasonable grounds, dispute the applicability of, or the validity of any charge, complaint or action taken pursuant to or under color of, any statute, rule, order, ordinance, requirement or regulation, defend against the same, 6.a Packet Pg. 68 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 6 and in good faith diligently conduct any necessary proceedings to prevent and avoid any adverse consequence of the same. The Lessee agrees that any such contest shall be prosecuted to a final conclusion as speedily as reasonably possible. 3.4. Maintenance of the Development. Subject to Sections 6.1 and 6.2, during the Lease Term, the Lessee shall perform, or cause to be performed, all maintenance and repairs necessary to maintain the Development in good repair and tenantable condition. Notwithstanding anything herein or in any plat map for the Property to the contrary, the Lessee shall have no obligation to repair or otherwise maintain the roads located on the Land. 3.5. Utilities. The Lessee shall be responsible for the cost of all utilities, including water, heat, gas, electricity, waste removal, sewers, and other utilities or services supplied to the Development, and, subject to Section 2.5(d), the Lessee shall pay or cause same to be paid currently and as due. 3.6. Maintenance of Creek. The parties acknowledge that a creek runs through the middle of the Property and that Lessor shall continue to maintain the creek in accordance with City policy and custom. Lessee acknowledges and agrees that nothing in this Section 3.6 shall obligate Lessor to perform any maintenance or repair activities to the creek as a result of the act or omission of Lessee, its officers, employees, contractor’s agents, guests or invitees. The parties further acknowledge and agree that nothing in this Section 3.6 shall affect or otherwise modify Lessee’s obligation to maintain insurance and indemnify, defend and hold Lessor harmless pursuant to Article 5 hereunder. ARTICLE 4: MORTGAGE LOANS 4.1. Loans Regarding the Development. To the extent loans (“Loans”) are required to fund the acquisition, construction, operation, repair, restoration, refinance and/or transfer of the Development from time to time, and for so long as the Investor Limited Partner is a partner in Lessee, the following provisions shall apply. 4.2. Liens and Encumbrances Against Lessee’s Interest in the Leasehold Estate. (a) The Lessee shall have the right to encumber the leasehold estate created by this Lease and the Improvements with deeds of trust, mortgages, regulatory agreements, and memoranda of option (collectively, “Liens”). (b) The Lessor’s right to terminate this Lease shall be subject to the following provisions. (i) The Lessor shall not agree to any mutual termination or cancellation of this Lease, nor accept any surrender of this Lease, nor consent to any amendment or modification of this Lease, without the prior written consent of the Investor Limited Partner and each of the Lenders which has an outstanding Loan. (ii) Notwithstanding any Event of Default by the Lessee under this Lease, the Lessor shall have no right to terminate this Lease by reason of any such Event of 6.a Packet Pg. 69 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 7 Default unless the Lessor shall have given each of the Lenders which has an outstanding Loan written notice of such Event of Default at the addresses given to the Lessor by those Lenders, and unless each such Lender shall have failed to remedy such Event of Default or acquire the Lessee’s leasehold estate created by this Lease or commence foreclosure or other appropriate proceedings, all as set forth in, and within the times specified by, this Section 4.2. (iii) Any Lender which has an outstanding Loan shall have the right, but not the obligation, at any time to pay any or all of the rent due pursuant to the terms of this Lease, and do any other act or thing required of the Lessee by the terms of this Lease, to prevent termination of this Lease. Each Lender shall have ninety (90) days after receipt of notice from the Lessor describing an Event of Default to cure the Event of Default; provided, however, that if the Event of Default is not reasonably susceptible to cure by a Lender within such period, such Lender shall have such longer period, not to exceed an additional ninety (90) days, as may be reasonably necessary to cure the Event of Default, so long as such Lender is diligently prosecuting such cure to completion (the “Initial Cure Period”). All payments so made by a Lender and all things so done by a Lender shall be as effective to prevent a termination of this Lease referenced in Section 9.1 as the same would have been if made and performed by the Lessee instead of by the Lender(s). (iv) In addition to the Initial Cure Period, if the default is such that possession of the Land may be reasonably necessary to remedy the default, any Lender which has an outstanding Loan shall have a reasonable time after the expiration of the Initial Cure Period within which to remedy such default, provided that (i) such Lender shall have fully cured any Event of Default in the payment of any monetary obligations of the Lessee under this Lease within the first ninety (90) days of the Initial Cure Period and shall continue to pay currently such monetary obligations when the same are due (subject to the cure rights contained in this Lease); (ii) such Lender shall have acquired the Lessee’s leasehold estate hereunder or commenced foreclosure or other appropriate proceedings prior to or within the Initial Cure Period, and shall be diligently prosecuting the same; and (iii) and after acquiring possession of the Land, such Lender shall diligently prosecute to completion such cures as may be reasonably possible to remedy nonmonetary defaults existing under this Lease. (v) Any Event of Default under this Lease which by its nature cannot reasonably be remedied by a Lender shall be deemed to be remedied if (i) within the Initial Cure Period, or prior thereto, such Lender shall have acquired the Lessee’s leasehold estate or commenced foreclosure or other appropriate proceedings, (ii) the Lender shall diligently prosecute any such proceedings to completion, (iii) the Lender shall have fully cured any other Event of Default in any obligation of the Lessee hereunder reasonably susceptible to cure by the Lender which does not require possession of the Land or shall diligently be prosecuting such cure to completion, and (iv) after gaining possession of the Land, the Lender shall thereafter perform all existing obligations of the Lessee hereunder which are reasonably capable of performance by such Lender. (vi) If any Lender is prohibited, stayed or enjoined by any law or by any bankruptcy, insolvency, action, process, injunction or other judicial proceedings of any court, including without limitation a court having jurisdiction over the Lessee, from commencing or 6.a Packet Pg. 70 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 8 prosecuting foreclosure or other appropriate proceedings, the times specified for commencing or prosecuting such foreclosure or other proceedings shall be extended for the period of such prohibition; provided that any Lender shall have fully cured any Event of Default in the payment of any monetary obligations of the Lessee under this Lease, including without limitation any monetary obligations to third parties which have become liens against the Property or any portion thereof, and shall continue to pay currently such monetary obligations when the same fall due (subject to the cure rights contained in this Lease). (vii) The Lessor shall concurrently give to each Lender who has provided to the Lessor an address for notices, and which has an outstanding Loan, a duplicate copy of all notices which the Lessor may from time to time give to the Lessee pursuant to this Lease. No notice by the Lessor to the Lessee hereunder shall be effective unless and until a copy of the notice shall have been given to each of the Lenders as set forth in this Section 4.2(b)(vii). Each notice required to be given by Lessor to a Lender shall be addressed as described above and shall otherwise be given in the manner, and with the effect, described in Section 10.2. (viii) Neither the foreclosure of a Lien, nor any sale thereunder, whether by judicial proceedings or by virtue of any power contained in the leasehold mortgage securing the Loan, nor any conveyance of the leasehold estate created hereby from the Lessee to a Lender Party through or in lieu of any such foreclosure, shall require the consent of the Lessor or constitute a breach of any provision of this Lease. In the event any Lender, or its designee, or any purchaser at foreclosure or recipient of an assignment of the leasehold interest hereunder (as applicable, a “Lender Party”), becomes the Lessee under this Lease by such means or pursuant to any new lease obtained under Section 4.2(b)(ix), the Lessor shall recognize the Lender Party as the Lessee hereunder or under such new lease and the Lender Party shall be personally liable under this Lease or such new lease only for the period of time that the Lender Party remains the Lessee thereunder, provided that the Lender Party attorns to the Lessor and agrees to be subject to the restrictions of this Lease. If a Lender (or its designee) becomes the Lessee under this Lease or any such new lease, the Lender (or its designee) shall have the right thereafter to assign or sublease this Lease or such new lease without obtaining the Lessor’s consent, provided that any assignee: (i) shall take the leasehold estate subject to all of the provisions of this Lease or such new lease, and (ii) shall assume and agree to perform all obligations of the Lessee under this Lease; any other assignment or sublease of this Lease by a Lender Party (other than a Lender or its designee) who becomes a Lessee shall be subject to the consent of the Lessor, which shall not be unreasonably withheld, conditioned or delayed. Nothing in this Section 4.2(b)(viii) shall be construed to obligate any Lender to remedy any default of the Lessee, and any failure of any Lender to complete any such cure after commencing the same shall not give rise to any liability of any Lender (or its designee) to the Lessor or the Lessee. (ix) If the Lessor terminates this Lease by reason of any Event of Default (as defined herein), or if this Lease shall otherwise terminate, whether by operation of law or otherwise, Lessor shall give prompt written notice of such termination to each Lender. The Lessor shall, upon written request from any Lender, given by the requesting Lender to Lessor not later than the sixtieth (60th) day after Lessor gives each Lender written notice that this Lease has terminated, execute and deliver a new lease of the Property and Improvements (or, with respect to such Improvements, a deed therefor, if requested by such Lender) to such Lender 6.a Packet Pg. 71 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 9 Party; provided, however, that such Lender shall, as a condition precedent to the Lessor’s execution of such new lease, pay to Lessor any delinquent rent or other delinquent amount payable by the Lessee to Lessor under this Lease. Such new lease shall have a term equal to the unexpired balance of the Lease Term as it exists immediately prior to such termination with the same agreements, covenants, interests and conditions (except for any requirements which have been fulfilled by the Lessee prior to termination) as are contained in this Lease and with priority equal to this Lease with respect to encumbrances of the Lessor’s interest in the Property or encumbrances of the Lessee’s interest in the Property permitted or caused by the Lessor, together with any provisions legally required in the event the applicable Lender Party is a governmental entity. No Lender Party shall be liable for any defaults by Lessee hereunder arising prior to acquiring the leasehold interest; provided, however, that, with respect to any non-monetary and continuing defaults, such Lender Party shall, within ninety (90) days after the execution of such new lease cure any non-monetary Events of Default by the Lessee which are reasonably susceptible to cure by the Lender Party (or, if any such non-monetary Event of Default is not reasonably susceptible to a cure by such Lender within such ninety (90) day period, such Lender shall have such additional period of time within which to cure such non-monetary Event of Default as may be reasonably required by such Lender to cure such Event of Default, so long as such Lender is diligently prosecuting such cure to completion. The Lender Party shall be personally obligated only for performance of obligations under the Lease commencing as of the date of such foreclosure, enforcement or assignment and ending as of the date of any assignment of the Lease to a successor Lessee in accordance with this Lease. Upon execution and delivery of such new lease by the Lessor and the Lender Party, the Lender Party shall have acquired all the right, title and interest of the Lessee under this Lease prior to its termination. The Lesso r, at the expense of the Lender Party, shall cooperate in taking such action as shall be necessary to cancel and discharge this Lease and to remove the Lessee from Property. If more than one (1) Lender timely gives Lessor a written request for such a new lease, then Lessor shall enter into such new lease with the Lender holding, immediately prior to such termination, the Lien which is senior, in terms of lien priority (determined by also taking all valid subordination agreements into account), to the Liens held by the other requesting Lenders. (x) If a Lender subsequently transfers its interest under this Lease after acquiring such interest by foreclosure or deed in lieu of foreclosure and, in connection with any such transfer, the Lender takes back a mortgage or deed of trust encumbering such leasehold interest to secure all or any portion of the purchase price given to the Lender for such transfer, then such mortgage or deed of trust shall be considered a Lien hereunder and the Lender shall be entitled to receive the benefit of and to enforce the provisions of this Lease or the new lease. (xi) Unless each of the Lenders otherwise consents in writing, the Lessor and the Lessee each hereby waives, and agrees not to assert or otherwise take the benefit of, that portion of Section 365(d)(4), or any other applicable provisions, of the United States Bankruptcy Code (11 U.S.C. Section 101 et seq.), which provides for the deemed rejection of a lease in certain circumstances, so long as the trustee is paying the rent due under the Lease. (xii) The Lessor shall cooperate in including in this Lease by suitable amendment from time to time any provision which may reasonably be requested by any Lender or any proposed lender, for the purpose of implementing the mortgagee-protection provisions 6.a Packet Pg. 72 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 10 contained in this Lease and allowing such Lender or proposed lender reasonable means to protect or preserve the lien of the leasehold mortgage and the value of its security, and to include any additional rights and privileges reasonably requested to be added by such Lender or proposed lender. The Lessor agrees to execute and deliver (and to acknowledge, if necessary, for recording purposes) any agreement necessary to effect any such amendment; provided, however, that any such amendment shall not in any way affect the Lease Term or rent under this Lease nor otherwise in any material respect adversely affect any rights of the Lessor under this Lease. (xiii) In no event shall any election by Lessee to terminate this Lease in connection with any casualty, condemnation or similar event have any force or effect unless the Investor Limited Partner and each Lender then holding a Lien consents to such termination, in writing, in its sole and absolute discretion. (c) Any leasehold mortgage created pursuant to Section 4.2(a) shall be subject to the provisions of this Lease and all rights of the Lessor under this Lease. (d) Each Lender that desires to benefit from Section 4.2 shall deliver to Lessor a written request for notices of default under this Lease, receipt of which shall be acknowledged by Lessor upon receipt. (e) Rights of Investor Limited Partner. The Investor Limited Partner shall have the same notice and cure rights as any Lender (including monetary obligations) as set forth in Section 4.2 above for so long as it is a partner of Lessee; provided, however, that (I) the requirement that a Lender acquire the Lessee’s leasehold estate hereunder or commence foreclosure or other appropriate proceedings prior to or within the Initial Cure Period, as set forth in Section 4.2(iv)(ii) above, shall be met by the Investor Limited Partner by commencing the removal and substitution of the general partner of Lessee in appropriate proceedings in accordance with the terms of the Partnership Agreement (together with any amendments to such removal and substitution rights in the Partnership Agreement reasonably approved by the Lessor and the Housing Authority of San Luis Obispo) and shall continue diligently prosecuting the same, and further provided that (i) the Lessor and Housing Authority of San Luis Obispo hereby approve the Investor Limited Partner or its affiliate as an interim replacement general partner and (ii) the Lessor and the Housing Authority of San Luis Obispo (so long as the tax credit limited partnership and general partner thereof are not affiliates of the Housing Authority of San Luis Obispo) shall have approved the ultimate general partner, which approval shall not be unreasonably withheld, delayed or conditioned; and (II) the Investor Limited Partner shall not have the right to enter into a new lease under Section 4.2(iv)(ix). The address for any notices to the Investor Limited Partner shall be provided to Lessor and the Housing Authority of San Luis Obispo in writing. 4.3. Cost of Loans to be Paid by Lessee. The Lessee affirms that it shall bear all of the costs and expenses in connection with (a) the preparation and securing of the Loans, (b) the delivery of any instruments and documents and their filing and recording, if required, and (c) all taxes and charges payable in connection with the Loans. 4.4. Proceeds of Loans. It is expressly understood and agreed that all Loan proceeds 6.a Packet Pg. 73 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 11 shall be paid to and become the property of the Lessee, and that the Lessor shall have no right to receive any such Loan proceeds. 4.5. Notice and Right to Cure Defaults Under Loans. Upon the recording of the “Memorandum of Ground Lease” in the form attached hereto as Exhibit B, the Lessor may record in the Official Records in which the Land is situated a request for notice of any default under each Loan. ARTICLE 5: INSURANCE 5.1. Required Insurance Coverage. (a) Fire and Extended Coverage Endorsement. The Lessee shall during the Lease Term keep the Development insured against loss or damage by a standard all risk policy in amounts such that the proceeds of such insurance shall not be less than the replacement value of the Development, or should insurance in such amount not be reasonably and commercially available, such lesser amount as may be acceptable to the Lessor. The amount of such insurance shall be adjusted by reappraisal of the Improvements by the insurer or its designee at least once every five (5) years during the Lease Term, if requested by the Lessor. If an all risk policy insuring the full replacement value of the Development is not reasonably and commercially available, the Lessee shall use best efforts to obtain and maintain an extended coverage endorsement that ensures the full replacement value of the Development as soon as such coverage becomes commercially and reasonably available, subject to the approval of the Lenders. (b) Liability and Property Damage Insurance. During the Lease Term, the Lessee shall keep in full force and effect a policy or policies of comprehensive general liability and property damage insurance against liability for bodily injury to or death of any person or property damage arising out of an occurrence on or about the Development. The limits of such insurance shall be not less than One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage. The limits of the insurance shall be adjusted once every five (5) years if and as reasonably required by the Lessor. (c) Workers’ Compensation Insurance. The Lessee shall carry or cause to be carried workers’ compensation insurance covering all persons employed in connection with the Development and with respect to whom death, bodily injury, or sickness insurance claims could be asserted against the Lessor or the Lessee. (d) Builders’ Risk Insurance. During the course of any alteration, construction or reconstruction, the cost of which exceeds ($50,000), the Lessee shall require any contractor to provide builders’ risk insurance for not less than One Million Dollars ($1,000,000) combined single limit for bodily injury or property damage insuring the interests of the Lessor, the Lessee and any contractors and subcontractors. 5.2. Insurance Policies and Premiums. (a) All liability policies required by this Lease or any Loan Document shall name the Lessor as an additional insured. Duplicate copies of such policies or certificates of 6.a Packet Pg. 74 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 12 such insurance shall be promptly furnished to the Lessor. (b) To the extent obtainable, any policy of insurance shall provide that any change or cancellation of said policy must be made in writing and sent to the Lessee and the Lessor at their respective principal offices at least thirty (30) days before the effective date of change or cancellation. 5.3. Proceeds of Insurance. (a) All fire and standard risk or extended coverage (casualty) insurance proceeds shall be applied to the payment of the costs of repairing or rebuilding that part of the Development damaged or destroyed if (1) the Lessee agrees in writing within ninety (90) days after payment of the proceeds of insurance that such repair or rebuilding is economically feasible, and (2) each Lender with an outstanding Loan permits such repair or rebuilding, provided that the extent of the Lessee’s obligation to restore the Development shall be limited to the amount of the insurance proceeds. (b) If the Development is not repaired or rebuilt, all such proceeds shall be applied in a manner consistent with the terms of the Loans and the Property shall be left in its original condition as of the commencement of the Lease term. (c) In the event that no Loan is outstanding, all insurance proceeds received under the policies set forth in this Article 5 shall be paid to the Lessee, provided that the Lessee shall apply such proceeds, to the extent possible, for reconstruction or repair in a manner consistent with the provisions of Section 6.2. 5.4. Limitation of Liability. (a) To the fullest extent provided by law, the Lessee shall indemnify and hold harmless the Lessor, its trustees, officials, officers, employees, agents, contractors, servants, directors, stockholders, partners or principals from all claims, actions, demands, costs, expenses and attorneys’ fees arising out of, attributable to or otherwise occasioned, in whole or in part, by any act or omission of the Lessee, its agents, contractors, servants, employees, or invitees, arising from or relating to operation of the Development and/or the performance except for that caused by Lessor’s gross negligence or willful misconduct. ARTICLE 6: CONDEMNATION OF THE DEVELOPMENT 6.1. Condemnation. If the Development or the Land or any part thereof shall be taken or condemned, for any public or quasi-public purpose or use by any competent entity in appropriate proceedings, or by any right of eminent domain, the Lessor and the Lessee shall request that awards and other payments on account of a taking of the Development and the Land (less costs, fees and expenses incurred by the Lessor and the Lessee in connection with the collection thereof) shall be divided by the presiding court between loss of value of the fee interest in the Land and loss of value of the Development. In any case, such awards and payments shall be applied as follows: 6.a Packet Pg. 75 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 13 (a) Net awards and payments received on account of a partial taking of the Development, other than a taking for a temporary use not exceeding one (1) year, shall be allocated and paid in the following order of priority: (i) If the Lessee reasonably believes restoration is economically feasible, and unless the Lessee is then in default and the opportunity to cure has expired under the Loan Documents, first, to pay the cost of restoration of the Development, provided that (1) the extent of the Lessee’s obligations to restore the Development shall be limited to the amount of the net award and payment received on account of the taking, and (2) each Lender with an outstanding Loan permits such repair or rebuilding. The Lessee shall furnish to the Lessor evidence reasonably satisfactory to the Lessor of the total cost of the restoration of the Development. (ii) Second, or first if (i) the Lessee does not reasonably believe that restoration is economically feasible, (ii) the Lessee is in default and the opportunity to cure has expired under the Loan Documents, or (iii) any Lender does not permit restoration, to any Lenders (in the order of their respective lien priority, if there is more than one Lender) in an amount equal to the decrease (if any) in the value of the security for their respective Loans as a result of the partial taking (calculated as set forth below in this Section 6.1(a)(ii)), less amounts payable to or recovered by the Lender pursuant to such taking, but not to exceed the unpaid balance of their Loans. For purposes of this Section 6.1(a)(ii), the amount of decrease in the value of the security for a Loan shall be the amount, if any, necessary to reduce the outstanding principal of said Loan such that the Loan to Value Ratio (as defined below) of said Loan immediately following the taking is equal to the Loan to Value Ratio of said Loan immediately preceding the taking. Loan to Value Ratio shall mean that fraction the numerator of which is the sum of the principal amount of the Loan plus the principal amounts of all Loans higher in lien priority to the Loan and the denominator of which is the appraised value of the Development immediately following the taking or immediately preceding the taking, as applicable. The values of the Development immediately preceding the taking and immediately following the taking shall be determined by an MAI or SRI appraiser selected by the Lessee and who is reasonably satisfactory to the Lessor. (iii) The balance, if any, shall be divided between the Lessor and the Lessee in the manner specified in Section 6.1(e); provided, however, if the taking has no effect on the value of the Lessor’s fee interest in the Land, the balance shall be paid exclusively to the Lessee. (b) Net awards and payments received on account of a partial or total taking of only the Lessor’s fee interest in the Land (that is, a taking of the Lessor’s fee interest in the Land that has no effect on the value of the Lessee’s leasehold interest in the Land or the Lessee’s fee interest in the Improvements), including severance damages, shall be paid to the Lessor, which amount shall be free and clear of any claims of the Lessee, or any other persons claiming rights to the Land through or under the Lessee. (c) Net awards and payments received on account of a taking for temporary use not exceeding one (1) year and relating to a period during the Lease Term shall be paid to the 6.a Packet Pg. 76 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 14 Lessee; provided, however, that if such taking for temporary use has resulted in any damage to or destruction of the Development, such net awards and payments shall be first applied to pay the cost of restoration thereof if the Lessee determines that restoration is feasible. Net awards and payments received on account of a taking for temporary use not exceeding one (1) year and relating to a period after the end of the Lease Term shall be paid to the Lessor. (d) Net awards and payments received on account of a total taking of the Development shall be allocated and paid in the following order of priority: (i) First, to any Lenders with then-outstanding Loans secured by the Development (in the order of their respective lien priority, if there is more than one Lender), in accordance with any Loan Documents, an amount equal to the unpaid balance secured by their respective Loans to the extent there are sufficient funds to make such payments; (ii) The remaining balance, if any, (the “Balance”) shall be divided between the Lessor and the Lessee in the manner specified in Section 6.1(d)(iii); provided, however, if the taking has no effect on the value of the Lessor’s fee interest in the Land, the balance shall be paid exclusively to the Lessee. (iii) Next, as between the Lessor and the Lessee, the Lessee shall receive reimbursement for any funds it has reasonably expended for repair and/or reconstruction of the Development (other than funds received from the Lenders). Then the Lessor shall receive an amount equal to the Balance multiplied by a fraction, the numerator of which is the number of years elapsed from the date of the Lease to the date of the taking, and the denominator of which is seventy-five (75). The Lessee shall receive the remainder after deduction of the Lessor’s portion. (e) The Lessee shall receive any award granted for or allocated to trade fixtures, moving expenses or loss of business. (f) If the Development is taken or condemned during the last five (5) years of the Lease Term under circumstances described in Section 6.1(a), the Lessee may elect to terminate the Lease and proceeds of any payment or award shall be distributed in accordance with the provisions of Sections 6.1(d) and (e). 6.2. Administration of Construction Fund in the Event of Condemnation, or Damage or Destruction of Development. In the event that the Loans have been paid in full, and if the Development or any part of it is to be repaired or reconstructed, after damage or destruction of the Development or its condemnation, all proceeds collected under any and all policies of insurance referred to in Article 5 above covering such damage or destruction, or all compensation received for such taking by the exercise of the power of eminent domain, shall be paid into a special trust fund to be created and held by the Lessee and to be designated as the “Construction Fund”, during such repairing or reconstructing. Any surplus of such insurance or condemnation proceeds remaining after the completion of all payments for such repairing or reconstructing shall be held or applied by the Lessee in a manner consistent with the applicable provision of Articles 5 and 6. 6.a Packet Pg. 77 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 15 6.3. Lessee, Lessor, Lenders to be Made Parties in Legal Proceedings. (a) In the event proceedings shall be instituted (1) for the exercise of the power of eminent domain, or (2) as a result of any damage to or destruction of the Development, the Lessee, the Lessor, and any Lender with a then-outstanding Loan shall be made parties to those proceedings, and if not made parties by the petitioning party, shall be brought into the proceedings by appropriate proceedings of other parties so that adjudication may be made of the damages, if any, to be paid to the Lessee, the Lessor and the Lenders as compensation for loss of their rights in the Improvements or the Land, or for damage to or destruction of the Development. Should the Lessor or the Lessee receive notice of institution of any proceedings subject t o Section 6.1, the party receiving such notice shall notify the other and each Lender in accordance with Section 10.2 of this Lease, not later than thirty (30) days after receiving such notice. (b) The Lessor and the Lessee shall cooperate and consult with each other in all matters pertaining to the settlement, compromise, arbitration, or adjustment of any and all claims and demands for damages on account of damage to or destruction of the Development, or for damages on account of the taking or condemnation of the Improvements or the Land. ARTICLE 7: PARTICULAR COVENANTS 7.1. Non-Discrimination. (a) The Lessee or its designee shall not, in the selection or approval of Tenants or provision of services or in any other matter, discriminate against any person or group of persons on the grounds of race, color, creed, religion, sex, sexual orientation, marital status, national origin, or ancestry. In addition, the Lessee covenants by and for the Lessee and the Lessee’s successors, assigns and all persons claiming under or through the Lessee that this Lease is made subject to the condition that, except to the extent permitted by applicable federal and California law, there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, sex, sexual orientation, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Land nor shall the Lessee or any person claiming under or through the Lessee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of Tenants, lessees, sublessees, subtenants or vendees on the Land. (b) The Lessor shall be entitled to invoke any remedies available at law or in equity to redress any breach of this Article 7 or to compel compliance therewith by the Lessee. The obligations of the Lessee and the Lessor to comply with Section 7.1(a) above shall inure to the benefit of each other. The Lessee shall be entitled to invoke any remedies available at law or in equity to redress any breach of this Article 7 or to compel compliance therewith by the Lessor. ARTICLE 8: ASSURANCES OF LESSOR 8.1. Lessor to Give Peaceful Possession. The Lessor covenants that it owns in fee simple, and that it has good and marketable title to the Land. The Lessor covenants and warrants 6.a Packet Pg. 78 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 16 that the Lessee and its Tenants shall have, hold and enjoy, during the Lease Term, peaceful, quiet, and undisputed possession of the Land leased without hindrance from anyone so long as the Lessee is not in default under this Lease. 8.2. Release of Lessor. The Lessor may sell, assign, transfer, or convey (but not encumber) all or any part of the Lessor’s interest in the Land or this Lease without obt aining the consent of the Lessee or any Lender of Investor Limited Partner, provided that the purchaser, assignee, or transferee expressly assumes all of the obligations of the Lessor under this Lease by a written instrument recorded in the Official Records. The Lessor may encumber all or any part of the Lessor’s interest in the Land or this Lease provided that such encumbrance shall be subject and subordinate to this Lease and shall not otherwise disturb or negatively affect Tenant’s or any Lender’s rights hereunder. In the event the Lessor intends to sell all or any part of the Land, the Lessor shall notify the Lessee of such intention not later than ten (10) days before close of escrow. In the event of a sale, assignment, transfer, or conveyance by the Lessor of the Land or its rights under this Lease, the same shall operate to release the Lessor from any liability arising on or after the effective date of such transfer upon any of the covenants or conditions of this Lease, expressed or implied, in favor of the Lessee, and in such event the Lessee shall look solely to the successor in interest of the Lessor in and to the Land or this Lease. This Lease shall not be affected by any such sale, and the Lessee agrees to attorn to any such purchaser or assignee. 8.3. Non-Subordination of Fee. Nothing in this Lease shall be construed as an agreement by the Lessor to subordinate its fee interest in the Property or its rights under the Lease. Lessor shall have no obligation to encumber or otherwise subordinate its fee interest in the Property or in this Lease to the interest of any Lender. ARTICLE 9: DEFAULTS AND REMEDIES 9.1. Events of Default; Remedy of Default by Lessee. (a) Any one or more of the following events shall constitute an “Event of Default”: (i) Failure to pay the Rent as required pursuant to Section 2.3 of this Lease, or any other payment required hereunder, and continuance of such failure for a period of ten (10) days after receipt by the Lessee of written notice specifying the non-payment; or (ii) Failure of the Lessee to observe and perform any covenant, condition, or agreement hereunder on its part to be performed, and continuance of such failure for a period of thirty (30) days after receipt by the Lessee of written notice specifying the nature of such default, or if by reason of the nature of such default the same cannot be remedied within said thirty (30) days, the Lessee shall fail to proceed with reasonable diligence after receipt of said notice to cure the same or shall fail to cure within ninety (90) days after receipt of said notice; or (iii) The Lessee’s abandonment of the Land for sixty (60) consecutive days or longer; or 6.a Packet Pg. 79 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 17 (iv) A general assignment is made by the Lessee for the benefit of creditors; or (v) The filing of a voluntary petition by the Lessee, or the filing of an involuntary petition by any of the Lessee’s creditors seeking the rehabilitation, liquidation, or reorganization of the Lessee under any law relating to bankruptcy, insolvency, or other relief of debtors, provided that in the case of an involuntary petition the Lessee shall have ninety (90) days after such filing to cause such petition to be withdrawn or dismissed; or (vi) The appointment of a receiver or other custodian to take possession of substantially all of the Lessee’s assets or of this leasehold which appointment is not withdrawn or dismissed within ninety (90) days after its entry; or (vii) The Lessee declares in writing that it is unable to pay its debts as they become due; or any court enters a decree or order directing the winding up or liquidation of the Lessee or of substantially all of its assets; or the Lessee files any action to dissolve or wind up its affairs or to cease or suspend the Development; or (viii) The attachment, execution, or other judicial seizure of substantially all of the Lessee’s assets or this leasehold, which is not dismissed, bonded, or stayed within ninety (90) days after such act is effected. (b) Whenever any Event of Default shall have occurred and be continuing and upon expiration of any applicable cure periods provided herein, and subject to the cure rights of the Investor Limited Partner and the Lenders set forth in this Lease (including, without limitation, Section 4.2), the Lessor may take whatever action at law or in equity as may appear reasonably necessary to enforce performance or observance of any obligations, agreements, or covenants of the Lessee under this Lease, including without limitation, termination of this Lease, in which event all Improvements shall become the property of Lessor without compensation or reimbursement to Lessee and all interest of Lessee in the Development shall terminate. In the event of such default, the Lessor’s remedies shall be cumulative, and no remedy expressly provided for in this Section 9.1 shall be deemed to exclude any other remedy allowed by law. 9.2. Remedy of Material Breach by Lessor. If the Lessor defaults under the Lease, the Lessee shall give the Lessor written notice requiring that the default be remedied by the Lessor. If the default is not cured within the time set forth by the Lessee (which shall be a reasonable time for curing the default and shall in any event be at least thirty (30) days), the Lessee and the Lenders may take any action as may be necessary to protect their respective interests. Such action, in the event that the Lessor shall fail to perform any of its obligations under this Lease and such failure shall continue after the expiration of the cure period specified in this Section 9.2, shall include the right of the Lessee and the Lenders to cure such default and receive any expenditure with interest thereon (at the reference rate then in effect at Wells Fargo Bank, N.A.) from the Lessor within thirty (30) days after sending to the Lessor a statement therefor. 9.3. Termination. Subject to Section 4.2(b)(i), in the event of a total taking or in the event of damage, destruction, or a partial taking, other than a temporary taking of the 6.a Packet Pg. 80 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 18 Development, which the Lessee reasonably determines renders continued operation of the Development infeasible both as a whole and in substantial part, this Lease shall terminate (except if the Lessee is rebuilding the Development in accordance with the terms of this Lease) and in such event any proceeds shall be allocated pursuant to Section 5.3 or Article 6, as appropriate. In the event of a partial taking that does not result in termination pursuant to this Section 9.3, this Lease shall remain in full force and effect as to the portion of the Development remaining, except that Rent otherwise payable hereunder shall be equal to an amount determined by multiplying the Rent by the ratio that the number of square feet in the Improvements after such taking bears to the number of square feet in the Improvements prior to the taking. ARTICLE 10: MISCELLANEOUS 10.1. Instrument Is Entire Agreement. This Lease and the attached exhibits constitute the entire agreement between the parties with respect to the matters set forth herein. This Lease shall completely and fully supersede all other prior understandings or agreements, both written and oral, between the Lessor and the Lessee relating to the lease of the Land by the Lessor to the Lessee. 10.2. Prevailing Wages - Notice. Lessee shall be responsible for evaluating the applicability of any and all prevailing wage requirements in connection with the work to be done on the Land. Lessee agrees at its own expense to comply with any and all prevailing wage requirements which may be applicable to any such work, and further Lessee shall hold harmless, indemnify and defend Lessor against any claims, damages, costs and/or liabilities arising out of or related to Lessee’s contracting for any improvements constructed by Lessee on the Land. Lessee acknowledges and agrees that, (a) in compliance with section 1773 of the California Labor Code, the State of California Department of Industrial Relations has established prevailing hourly wage rates for each type of workman, (b) current wage rates may be obtained from the Division of Labor web site: www.dir.ca.gov/DLSR/PWD, and (c) any contractors or subcontractors required to pay prevailing wage must be registered with the Department of Industrial Relations pursuant to Section 1725.5 of the California Labor Code. 10.3. Notices. All notices hereunder shall be in writing signed by Authorized Officer(s) and shall be sent by United States first class, certified mail, return receipt requested, postage prepaid, or by recognized express delivery service with a receipt showing the date of delivery, addressed: If to the Lessor: City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Attn: City Clerk With a copy to: 990 Palm Street San Luis Obispo, Ca. 93401 Attn: City Attorney 6.a Packet Pg. 81 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 19 If to the Lessee: Housing Authority of the City of San Luis Obispo 487 Leff Street San Luis Obispo, CA 93401 Attention: Executive Director With a copy to: Gubb & Barshay LLP 505 14th Street Suite 1050 Oakland, CA 94612 Attention: Scott Barshay Or to any other address as any party may have furnished to the other in writing pursuant to the requirements of this Section 10.2 as a place for service of notice. Any notice so given shall be deemed to have been given upon receipt (or upon the date that delivery is refused by the addressee), as shown on the delivery receipt. 10.4. Recording. Either Lessee or Lessor may record the Memorandum of Ground Lease in the Official Records in the county in which the Development is located. 10.5. Non-Waiver of Breach. Neither the failure of the Lessor or the Lessee to insist upon strict performance of any of the covenants and agreements of this Lease nor the failure by the Lessor or the Lessee to exercise any rights or remedies granted to such parties under the terms of this Lease shall be deemed a waiver or relinquishment (a) of any covenant herein contained or of any of the rights or remedies of the Lessee or the Lessor hereunder, (b) of the right in the future of the Lessor or the Lessee to insist upon and to enforce by any appropriate legal remedy a strict compliance with all of the covenants and conditions thereof, or (c) the right of the Lessor to recover possession of the Land. 10.6. Effective Date; Counterparts. This Lease shall become effective upon the commencement of the Lease Term set forth in Article 2. This Lease may be executed in counterparts, each of which shall be an original and all of which shall constitute the same instrument. 10.7. Lease Binding on Successors. This Lease and all of its provisions and attached exhibits shall inure to the benefit of, and shall be binding upon, the Lessor, the Lessee, and their respective permitted successors and permitted assigns and, as provided in Sections 4.2(b) and 9.1(b), the Investor Limited Partner and the Lenders. 10.8. Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties or by any third party to create the relationship of principal or agent or of partnership, joint venture or association or of buyer and seller between the Lessor and the Lessee, it being expressly understood and agreed that neither the computation of any payments and other charges under the terms of this Lease nor any other provisions contained in this Lease, nor any 6.a Packet Pg. 82 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 20 act or acts of the parties, shall be deemed to create any relationship between the Lessor and the Lessee other than the relationship of landlord and tenant. 10.9. No Merger. There shall be no merger of this Lease or any interest in this Lease nor of the leasehold estate created hereby, with the fee estate in the Land, by reason of the fact that this Lease or such interest therein, or such leasehold estate may be directly or indirectly held by or for the account of any person who shall hold the fee estate in the Land, or any interest in such fee estate, nor shall there be such a merger by reason of the fact that all or any part of the leasehold estate created hereby may be conveyed or mortgaged in a leasehold mortgage to a leasehold mortgagee who shall hold the fee estate in the Land or any interest of the Lessor under this Lease. 10.10. Gender and Number. Words of any gender used in this Lease shall be held to include any other gender, and any words in the singular number shall be held to include the plural (and vice versa), when the context requires. 10.11. Titles. The titles and article, section or paragraph headings are inserted only for convenience, and are in no way to be construed as a part of this Lease or as a limitation on the scope of the particular provisions to which they refer. 10.12. Severability. If any provision of this Lease or the application of any provision to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this Lease, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected, and each provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 10.13. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. 10.14. Amendments. Except as provided in Section 4.2 hereof, prior to entering into any amendment to this Lease, Lessor and Lessee shall obtain the prior consent of the Investor Limited Partner and all Lenders, if applicable and required. 10.15. Estoppel Certificates. Each Party, the Investor Limited Partner or each of the Lenders (a “Requesting Party”) may require the other Party (a “Certifying Party”) to execute and deliver to the Requesting Party (or directly to a designated third party) an estoppel certificate certifying to the Certifying Party’s actual knowledge as to factual matters relating to this Lease as reasonably requested by the Requesting Party. The Certifying Party shall sign, acknowledge, and return such estoppel certificate within fifteen (15) days after request, even if the Requesting Party is in default under this Lease. Such estoppel certificate may be relied upon by the Investor Limited Partner, a Lender or any other party which may have, or intend to acquire, an interest in this Lease. 10.16. Fees and Costs of Litigation. The prevailing Party in any litigation arising out of or in connection with this Lease shall be entitled to receipt of reasonable attorneys’ fees and costs from the other Party. 6.a Packet Pg. 83 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments 21 [SIGNATURES ON FOLLOWING PAGE] 6.a Packet Pg. 84 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A IN WITNESS WHEREOF, the parties have executed this Lease effective as of the day and year first above written. LESSEE Housing Authority of the City of San Luis Obispo By: ________________________ Scott Smith, Executive Director Date LESSOR City of San Luis Obispo By: ________________________ Katie Lichtig, City Manager Date 6.a Packet Pg. 85 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A Exhibit A Description of Land Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: LEASEHOLD IN AND TO THAT PORTION OF LOT 3 IN SECTION 1 IN TOWNSHIP 31 SOUTH, RANGE 12 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE DECEMBER 3, 1875, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF ORCUTT ROAD, 40 FEET WIDE, WITH THE CENTERLINE OR LAUREL LANE, 40 FEET WISE; THENCE ALONG THE CENTERLINE OF SAID LAUREL LANE NORTH 30°40’ EAST, 303.74 FEET; THENCE SOUTH 59°20’ EAST, 38.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 59°20’ EAST, 100.00 FEET; THENCE SOUTH 30°40’ WEST, 39.89 FEET TO THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO HENRY A. BERNARD, ET UX. RECORDED MAY 22, 1953 IN BOOK 711 PAGE 62 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID NORTHERLY LINE SOUTH 82°17’ EAST, 182.52 FEET TO THE NORTHEASTERLY CORNER OF SAID LAND OF BERNARD AS FOLLOWS: FROM A TANGENT LINE BEARING SOUTH 19°56 WEST, SOUTHERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 175 FEET, THROUGH A CENTRAL ANGLE OF 20°18’ AN ARC DISTANCE OF 62 FEET; TANGENT TO SAID CONCAVE NORTHWESTERLY HAVING A RADIUS OF 20 FEET, THROUGH A CENTRAL ANGLE OF 90°, AND ARC DISTANCE OF 31.42 FEET TO THE NORTHERLY LINE OF ORCUTT ROAD 40 FEET WIDE; THENCE ALONG SAID ORCUTT ROAD NORTH 89°38’ EAST, 90 FEET TO THE WESTERLY TERMINUS OF THE COURSE RECITED AS HAVING A BEARING AND LENGTH OF SOUTH 89°38’ WEST, 197.00 FEET IN THE DEED TO CHARLES E. FREEMAN AND WIFE RECORDED MAY 1,1957 IN BOOK 890, RECORDER; THENCE ALONG THE WESTERLY BOUNDARY OF THE LAND DESCRIBED IN SAID DEED TO FREEMAN AS FOLLOWS: NORTHWESTERLY ALONG A CURVE CONCAVE 90°, AN ARC DISTANCE OF 31.42 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY ALONG A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 175 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF LOT 7 IN BLOCK A OF TRACT NO. 208, AS SHOWN ON MAP RECORDED IN BOOK 6, PAGE 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID BLOCK A NORTH 59°20’ WEST, 312.70 FEET TO THE MOST WESTERLY CORNER OF LOT 43 IN SAID BLOCK A; THENCE SOUTH 30°40’ WEST, 90.69 FEET TO THE TRUE POINT OF BEGINNING. APN: 004-961-047 6.a Packet Pg. 86 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Stargell Commons Exhibit B Exhibit B Memorandum of Ground Lease [attached] 6.a Packet Pg. 87 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Attn: City Clerk MEMORANDUM OF GROUND LEASE [For review by title.]The Undersigned Grantor(s) Declare(s): DOCUMENTARY TRANSFER TAX $____________; CITY TRANSFER TAX $; SURVEY MONUMENT FEE $ [ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, [ ] unincorporated area; [ ] City of San Luis Obispo, and [ ] __________________________________ Signature of Declarant THIS MEMORANDUM OF GROUND LEASE is made and entered into as of __________, 2016, by and between Housing Authority of San Luis Obispo, a public body, corporate and politic (the “Lessee”) and the City of San Luis Obispo (the “Lessor”). The Lessor has leased that certain real property described as 1090 Orcutt, 1092 Orcutt, and 1105 Laurel in the City of San Luis Obispo, County of San Luis Obispo, California, as more particularly described in Exhibit A attached hereto, to the Lessee upon the terms and conditions set forth in that certain written Amended and Restate Ground Lease (the “Lease”) of even date herewith. The term of the Lease terminates on _____________, 20__. The purpose of this Memorandum of Ground Lease is to give notice of the Lease and of the rights created thereby, all of which are hereby confirmed. [SIGNATURES ON FOLLOWING PAGE] 6.a Packet Pg. 88 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A IN WITNESS WHEREOF, the parties have executed this Memorandum of Ground Lease as of the day and year first above written. LESSEE Housing Authority of the City of San Luis Obispo By: ________________________ Scott Smith, Executive Director Date LESSOR City of San Luis Obispo By: ________________________ Katie Lichtig, City Manager Date [ALL SIGNATURES MUST BE NOTARIZED] 6.a Packet Pg. 89 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A State of California } County of San Luis Obispo } On , before me, , Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above State of California } County of San Luis Obispo } On , before me, , Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the docu ment to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the docu ment to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. 6.a Packet Pg. 90 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit A Exhibit A Legal Description Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: LEASEHOLD IN AND TO THAT PORTION OF LOT 3 IN SECTION 1 IN TOWNSHIP 31 SOUTH, RANGE 12 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE DECEMBER 3, 1875, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF ORCUTT ROAD, 40 FEET WIDE, WITH THE CENTERLINE OR LAUREL LANE, 40 FEET WISE; THENCE ALONG THE CENTERLINE OF SAID LAUREL LANE NORTH 30°40’ EAST, 303.74 FEET; THENCE SOUTH 59°20’ EAST, 38.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 59°20’ EAST, 100.00 FEET; THENCE SOUTH 30°40’ WEST, 39.89 FEET TO THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO HENRY A. BERNARD, ET UX. RECORDED MAY 22, 1953 IN BOOK 711 PAGE 62 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID NORTHERLY LINE SOUTH 82°17’ EAST, 182.52 FEET TO THE NORTHEASTERLY CORNER OF SAID LAND OF BERNARD AS FOLLOWS: FROM A TANGENT LINE BEARING SOUTH 19°56’ WEST, SOUTHERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 175 FEET, THROUGH A CENTRAL ANGLE OF 20°18’ AN ARC DISTANCE OF 62 FEET; TANGENT TO SAID CONCAVE NORTHWESTERLY HAVING A RADIUS OF 20 FEET, THROUGH A CENTRAL ANGLE OF 90°, AND ARC DISTANCE OF 31.42 FEET TO THE NORTHERLY LINE OF ORCUTT ROAD 40 FEET WIDE; THENCE ALONG SAID ORCUTT ROAD NORTH 89°38’ EAST, 90 FEET TO THE WESTERLY TERMINUS OF THE COURSE RECITED AS HAVING A BEARING AND LENGTH OF SOUTH 89°38’ WEST, 197.00 FEET IN THE DEED TO CHARLES E. FREEMAN AND WIFE RECORDED MAY 1,1957 IN BOOK 890, RECORDER; THENCE ALONG THE WESTERLY BOUNDARY OF THE LAND DESCRIBED IN SAID DEED TO FREEMAN AS FOLLOWS: NORTHWESTERLY ALONG A CURVE CONCAVE 90°, AN ARC DISTANCE OF 31.42 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY ALONG A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 175 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF LOT 7 IN BLOCK A OF TRACT NO. 208, AS SHOWN ON MAP RECORDED IN BOOK 6, PAGE 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID BLOCK A NORTH 59°20’ WEST, 312.70 FEET TO THE MOST WESTERLY CORNER OF LOT 43 IN SAID BLOCK A; THENCE SOUTH 30°40’ WEST, 90.69 FEET TO THE TRUE POINT OF BEGINNING. APN: 004-961-047 6.a Packet Pg. 91 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Memorandum of Ground Lease Laurel Creek Apartments 1 6.a Packet Pg. 92 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Ground Lease Laurel Creek Apartments Exhibit C Exhibit C Grant Deed [attached] 6.a Packet Pg. 93 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Grant Deed Laurel Creek Apartments 1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Attn: City Clerk (Space Above For Recorder's Use Only) GRANT DEED [For review by title.]The Undersigned Grantor(s) Declare(s): DOCUMENTARY TRANSFER TAX $____________; CITY TRANSFER TAX $; SURVEY MONUMENT FEE $ [ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, [ ] unincorporated area; [ ] City of San Luis Obispo, and [ ] __________________________________ Signature of Declarant FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of San Luis Obispo, a public body, corporate and politic hereby GRANT(S) to the Housing Authority of San Luis Obispo the real property described as 1090 Orcutt, 1092 Orcutt, and 1105 Laurel, located in the City of San Luis Obispo, County of San Luis Obispo, State of California, described on Exhibit A attached hereto and incorporated herein. GRANTOR: The City of San Luis Obispo By: Katie Lichtig City Manager [ALL SIGNATURES MUST BE NOTARIZED] 6.a Packet Pg. 94 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Grant Deed Laurel Creek Apartments 2 State of California } County of San Luis Obispo } On , before me, , Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the docu ment to which this certificate is attached and not the truthfulness, accuracy, or va lidity of that document. 6.a Packet Pg. 95 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) Grant Deed Laurel Creek Apartments 3 EXHIBIT A All buildings, structures and improvements now or at any time hereafter erected, constructed or situated on the property, which are and shall remain real property, in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: LEASEHOLD IN AND TO THAT PORTION OF LOT 3 IN SECTION 1 IN TOWNSHIP 31 SOUTH, RANGE 12 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE DECEMBER 3, 1875, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF ORCUTT ROAD, 40 FEET WIDE, WITH THE CENTERLINE OR LAUREL LANE, 40 FEET WISE; THENCE ALONG THE CENTERLINE OF SAID LAUREL LANE NORTH 30°40’ EAST, 303.74 FEET; THENCE SOUTH 59°20’ EAST, 38.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 59°20’ EAST, 100.00 FEET; THENCE SOUTH 30°40’ WEST, 39.89 FEET TO THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO HENRY A. BERNARD, ET UX. RECORDED MAY 22, 1953 IN BOOK 711 PAGE 62 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID NORTHERLY LINE SOUTH 82°17’ EAST, 182.52 FEET TO THE NORTHEASTERLY CORNER OF SAID LAND OF BERNARD AS FOLLOWS: FROM A TANGENT LINE BEARING SOUTH 19°56 WEST, SOUTHERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 175 FEET, THROUGH A CENTRAL ANGLE OF 20°18’ AN ARC DISTANCE OF 62 FEET; TANGENT TO SAID CONCAVE NORTHWESTERLY HAVING A RADIUS OF 20 FEET, THROUGH A CENTRAL ANGLE OF 90°, AND ARC DISTANCE OF 31.42 FEET TO THE NORTHERLY LINE OF ORCUTT ROAD 40 FEET WIDE; THENCE ALONG SAID ORCUTT ROAD NORTH 89°38’ EAST, 90 FEET TO THE WESTERLY TERMINUS OF THE COURSE RECITED AS HAVING A BEARING AND LENGTH OF SOUTH 89°38’ WEST, 197.00 FEET IN THE DEED TO CHARLES E. FREEMAN AND WIFE RECORDED MAY 1,1957 IN BOOK 890, RECORDER; THENCE ALONG THE WESTERLY BOUNDARY OF THE LAND DESCRIBED IN SAID DEED TO FREEMAN AS FOLLOWS: NORTHWESTERLY ALONG A CURVE CONCAVE 90°, AN ARC DISTANCE OF 31.42 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY ALONG A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 175 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF LOT 7 IN BLOCK A OF TRACT NO. 208, AS SHOWN ON MAP RECORDED IN BOOK 6, PAGE 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID BLOCK A NORTH 59°20’ WEST, 312.70 FEET TO THE MOST WESTERLY CORNER OF LOT 43 IN SAID BLOCK A; THENCE SOUTH 30°40’ WEST, 90.69 FEET TO THE TRUE POINT OF BEGINNING. APN: 004-961-047 6.a Packet Pg. 96 Attachment: a - Amended and Restated Ground Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 1 RECORDING REQUESTED BY: AND WHEN RECORDED RETURN TO: City of San Luis Obispo 990 Palm Street San Luis Obispo, Ca. 93401 Attn: City Clerk ________________________________________________________________________ ASSIGNMENT AND ASSUMPTION OF LEASE This Assignment and Assumption of Lease (the “Agreement”) is entered into as of __________________, 2016, by and among Laurel Creek Apartments, a California Limited Partnership (the “Assignor”), the Housing Authority of San Luis Obispo, a public body, corporate and politic (the “Assignee”) and the City of San Luis Obispo (the “City”), with reference to the following facts: A. Assignee, as “Lessee” and the City, as “Lessor”, entered into that certain Lease Agreement (Agreement A-24-91-CC) for that certain real propert y situated at 1090 and 1092 Orcutt Road and 1105 Laurel Lane, City of San Luis Obispo, County of San Luis Obispo, California, dated as of April 29, 1991, between the Assignee and City, a memorandum of which lease was recorded in the Official Records of San Luis Obispo County, California (the “Official Records”) on September 17, 1993 as Instrument No. 1993-056148 (the “Lease”). Assignee’s interest in the Lease was assigned to SLO Non- Profit Housing Corporation (“SLO”) pursuant to an assignment agreement recorded in the Official Records on November 8, 1993, as Instrument No. 1993-069666. SLO’s interest in the Original Lease was subsequently assigned to Assignor pursuant to an assignment agreement recorded in the Official Records on October 20, 1994, as Instrument No. 1994-061783. B. The Assignor desires to assign to the Assignee and the Assignee desires to accept the assignment from Assignor of all of Assignor's obligations with respect to the Lease. C. The consent of the City to the assignment of Assignor's rights and obligations under the Lease is required. NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the parties hereto and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows: 1. Assignment by Assignor. Assignor hereby assigns to the Assignee all of Assignor's rights, title and interest under the Lease and the Memorandum of Lease. 6.b Packet Pg. 97 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 2 2. Acceptance of Assignment. The Assignee hereby accepts the above assignment and hereby assumes, agrees and undertakes to perform all of the obligations, covenants, and agreements of Assignor under the Lease. Any reference to Assignor in the Lease shall be deemed a reference to the Assignee. 3. Payment of Obligations. The Assignee agrees that all amounts due from Assignor pursuant to the Lease from the date hereof shall be assumed by the Assignee. 4. Consent to Assignment. The City hereby consents to the assignment of the Lease from Assignor to the Assignee and hereby releases Assignor from all obligations imposed under the Lease. 5. Representations of Assignor. Assignor hereby represents and warrants that (i) it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Lease, (ii) no event of default, or event that with notice or the passage of time or both could constitute an event of default under the Lease, has occurred that remains uncured as of the date of this Agreement, and (iii) Assignor has obtained all authorizations and approvals required by law, under its organizational documents and under the Lease to assign its rights and obligations under the Lease to the Assignee. 6. Representations of the Assignee. The Assignee hereby represents and warrants that (i) the Assignee has obtained all authorizations and approvals required by law, under its organizational documents and under the Lease to assume all of Assignor’s rights and obligations under the Lease, and (ii) that the Assignee has the financial ability and development experience to carry out the intent of the Lease and to own and operate the Project in compliance with all of the requirements of the Lease. 7. Effective Date. The assignment set forth above shall be effective as of the date of this Agreement. 8. Counterparts. This Agreement may be signed by different parties hereto in counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Agreement. 9. Additional Documents. Assignor and the Assignee agree to execute such documents and instruments, including escrow instructions, as may be necessary to effectuate the intent of this Agreement. 10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 6.b Packet Pg. 98 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 3 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. Assignor: Laurel Creek Apartments, a California Limited Partnership By: SLO Non-Profit Housing Corporation, a California nonprofit public benefit corporation By:________________________________ Scott Smith, Chief Executive Officer Assignee: Housing Authority of San Luis Obispo, a public body, corporate and politic By: _______________________________ Scott Smith, Executive Director City: City of San Luis Obispo By________________________________ Katie Lichtig, City Manager [SIGNATURES MUST BE NOTARIZED] 6.b Packet Pg. 99 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 4 EXHIBIT A LEGAL DESCRIPTION THE LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN LUIS OBISPO, CITY OF SAN LUIS OBISPO, DESCRIBED AS FOLLOWS: LEASEHOLD IN AND TO THAT PORTION OF LOT 3 IN SECTION 1 IN TOWNSHIP 31 SOUTH, RANGE 12 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE CITY OF SAN LUIS OBISPO, IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE DECEMBER 3, 1875, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF ORCUTT ROAD, 40 FEET WIDE, WITH THE CENTERLINE OR LAUREL LANE, 40 FEET WISE; THENCE ALONG THE CENTERLINE OF SAID LAUREL LANE NORTH 30°40’ EAST, 303.74 FEET; THENCE SOUTH 59°20’ EAST, 38.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 59°20’ EAST, 100.00 FEET; THENCE SOUTH 30°40’ WEST, 39.89 FEET TO THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO HENRY A. BERNARD, ET UX. RECORDED MAY 22, 1953 IN BOOK 711 PAGE 62 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID NORTHERLY LINE SOUTH 82°17’ EAST, 182.52 FEET TO THE NORTHEASTERLY CORNER OF SAID LAND OF BERNARD AS FOLLOWS: FROM A TANGENT LINE BEARING SOUTH 19°56 WEST, SOUTHERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 175 FEET, THROUGH A CENTRAL ANGLE OF 20°18’ AN ARC DISTANCE OF 62 FEET; TANGENT TO SAID CONCAVE NORTHWESTERLY HAVING A RADIUS OF 20 FEET, THROUGH A CENTRAL ANGLE OF 90°, AND ARC DISTANCE OF 31.42 FEET TO THE NORTHERLY LINE OF ORCUTT ROAD 40 FEET WIDE; THENCE ALONG SAID ORCUTT ROAD NORTH 89°38’ EAST, 90 FEET TO THE WESTERLY TERMINUS OF THE COURSE RECITED AS HAVING A BEARING AND LENGTH OF SOUTH 89°38’ WEST, 197.00 FEET IN THE DEED TO CHARLES E. FREEMAN AND WIFE RECORDED MAY 1,1957 IN BOOK 890, RECORDER; THENCE ALONG THE WESTERLY BOUNDARY OF THE LAND DESCRIBED IN SAID DEED TO FREEMAN AS FOLLOWS: NORTHWESTERLY ALONG A CURVE CONCAVE 90°, AN ARC DISTANCE OF 31.42 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY ALONG A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 175 FEET THROUGH A CENTRAL ANGLE OF 31°, AN ARC DISTANCE OF 67.63 FEET; THENCE NORTHEASTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF LOT 7 IN BLOCK A OF TRACT NO. 208, AS SHOWN ON MAP RECORDED IN BOOK 6, PAGE 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID BLOCK A NORTH 59°20’ WEST, 312.70 FEET TO THE MOST WESTERLY CORNER OF LOT 43 IN SAID BLOCK A; THENCE SOUTH 30°40’ WEST, 90.69 FEET TO THE TRUE POINT OF BEGINNING. APN: 004-961-047 6.b Packet Pg. 100 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 5 State of California } County of San Luis Obispo } On , before me, Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above State of California } County of San Luis Obispo } On , before me, Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. 6.b Packet Pg. 101 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) 6 State of California } County of San Luis Obispo } On , before me, Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above State of California } County of San Luis Obispo } On , before me, Date Name and Title of the Officer personally appeared, , Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the docu ment to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. 6.b Packet Pg. 102 Attachment: b - Assignment and Assumption of Lease (1215 : Housing Authority Lease Reassignment and Extension Request) CITY OF SAN LUIS OBISPO PROMISSORY NOTE $226,264.00 Date: , 2016 At San Luis Obispo, California FOR VALUE RECEIVED, The Housing Authority of the City of San Luis Obispo, a public agency corporate and politic, ("HASLO"), promises to pay to the order of the City of San Luis Obispo ("City") a municipal corporation and charter city in the State of California, at such place as the City may from time to time designate by written notice to HASLO, the principle sum of Two Hundred Twenty- Six Thousand Two Hundred Sixty Four Dollars and 00/100 ($226,264.00), without interest. Principal shall be payable in lawful money of the United States of America. 1. Payment; Maturity. So long as no Event of Default (defined in Section 7 below) has occurred, no payments of principal shall be due or owing on this Note prior to the date that is 75 years from the date of this Note (the “Maturity Date”). Upon an Event of Default, the outstanding princi pal of this Note and any accrued interest, as provided in section 5 below, shall become immediately due and owing. This Note shall be deemed fully satisfied when the Maturity Date has been reached without an Event of Default, or the principal amount of this Note, all interest accrued thereon and all other amounts due hereunder are paid in full. 2. Security. This Note is unsecured. 3. Prepayment. This Note may be prepaid, at any time, in whole or in part, without premium or penalty. 4. Application of Payments. Each payment under this Note shall be applied (a) first, at the option of City, to the payment of any other amounts owing under this Note, including, but not limited to, advances City may have made for attorney fees or late charges due hereunder; and (b) second, to the reduction of principal of this Note. All payments of principal under this Note shall be applied to the most remote principal installment then unpaid. Accrued interest shall not be added to the principal balance of the Note; provided, however, upon an Event of Default all accrued and unpaid interest shall be added to the principal amount of the Note and interest at the Default Rate shall accrue thereon. 5. Default Rate; Late Charge. Upon an Event of Default the unpaid principal balance and all accrued interest thereon shall bear interest thereafter at the rate of the Default Rate, but if such interest rate exceeds the Maximum Rate, then such rate shall be reduced to the Maximum Rate. The term "Default Rate" means that Interest Rate plus five percent (5.00%) per annum. In addition, if any payment due under this Note is paid within ten (10) business days after HASLO received written notice of such failure to pay, HASLO shall pay a reasonable later or collection charge equal to fiv e percent (5.00%) of the amount so unpaid. City and HASLO agree that the actual damages and costs sustained by City due to the failure to make timely payments would be extremely difficult to measure and that the charges specified in this paragraph represent a reasonable estimate by HASLO and City of a fair average compensation for such damages and costs. Such charges shall be paid by HASLO without prejudice to the right of City to collect any other amounts provided to be paid under this Note or any other agreement or, with respect to late payments, to declare an Event of Default. 6.c Packet Pg. 103 Attachment: c - Promissory Note (1215 : Housing Authority Lease Reassignment and Extension Request) HASLO – Laurel Creek Apartments Promissory Note Page 2 Usury. Notwithstanding anything herein to the contrary, no provision contained herein shall require the payment or permit the collection of interest, including any fees and/or charges, in excess of the maximum non-usurious interest permitted by applicable law ("Maximum Rate"). If any interest in excess of the Maximum Rate is provided for, or shall be adjudicated to be so provided or, then HASLO shall not be obligated to pay interest to the extent that it is in excess of the Maximum Rate and any excess interest which may have been collected shall be either applied as a credit against the then unpaid principal amount hereof or refunded to HASLO. 6. Event of Default. City and HASLO acknowledge that this Note is being executed pursuant to the terms and conditions of that certain Amended and Restated Ground Lease dated ________, 2016 (the “Lease”), recorded in the Official Records of San Luis Obispo County as Document No. __________, concerning real property leased to HASLO by City located at 1090 and 1092 Orcutt Road and 1105 Laurel Lane, City of San Luis Obispo. A copy of the Lease is attached as Exhibit “A” and incorporated herein by this reference. HASLO and City further acknowledge that the principal amount of this Note equals the fair market value of the leasehold interest under the Lease and that payment of any monies under this Note is contingent upon HASLO’s faithful performance under the Lease and that, an Event of Default as defined in Article 9 of the Lease shall be cause for payment of principal as provided herein. 7. Remedies. If any Event of Default occurs under this Note then the whole of the principal, interest and charges owing on this Note may be declared immediately due a nd payable and City may exercise all remedies at law, in equity or otherwise, including the right to accelerate the payment of the principal, interest and charges owing hereunder. 8. Waiver of Presentment. HASLO and all persons liable or to be liable on this Note waive presentment, demand, notice of dishonor, notice of default, delinquency or acceleration, notice of intent to demand or accelerate payment or maturity, presentment for payment, and notice of protest and nonpayment, grace, notice late charges and diligence in taking any action to collect amounts due to City under this Note or proceeding against any of the rights and interest in and to personal or real property, if any, securing payment of this Note. 9. No Waiver. No delay on the part of City in the exercise of any power or right under this Note shall operate as a waiver thereof, and no single or partial exercise of any other power or right shall operate as a waiver thereof. 10. Miscellaneous. a. Applicable Law. This Note shall be governed by and construed in accordance with the laws of the State of California. b. Severability of Provisions. Each provision of this Note shall be considered separable and if for any reason any provision which is not essential to the effectuation of the basic purposes of this Note is determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those provisions of this Note which are valid. c. Interpretation. Unless otherwise specific, in computing any period of time described herein, the term "days" means calendar days, unless the final day of any designated period of time is not a "business day" (as defined below), in which case the period shall run until the end of the next business day. A "business day" is any day that is not a Saturday, Sunday or legal holiday for national 6.c Packet Pg. 104 Attachment: c - Promissory Note (1215 : Housing Authority Lease Reassignment and Extension Request) HASLO – Laurel Creek Apartments Promissory Note Page 3 banks located in California. The last day of any period of time described herein shall be deemed to end at 5:00 p.m., Pacific Time. d. Headings; Severability. Headings in this Note are for convenience only and do not define or limit the scope of provisions of this Note. The invalidity or unenforceability of any one or more provisions of this Note will not affect the validity or enforceability of any other provision. e. Notices. All notices to be given under this Note must be given in accordance with the Amended and Restated Ground Lease. f. Relationship. At all times, the relationship of City and HASLO shall be that of creditor and debtor. The City shall not, in any event, be constructed or held to be a partner, joint venture or associate of HASLO in the Conduct of HASLO's business. Nothing in this Note shall be construed to establish such relationship. g. Limitation on Recourse. HASLO's officers, partners, officers, directors, employees or agents nor their respective members, officers, partners, officers, directors, employees or agents shall be personally liable for the payment of principle, interest and other amounts which may become due and payable under the Note, except in the case of actual fraud or willful misconduct of such person. [Signature appears on the following page] 6.c Packet Pg. 105 Attachment: c - Promissory Note (1215 : Housing Authority Lease Reassignment and Extension Request) HASLO – Laurel Creek Apartments Promissory Note Page 4 IN WITNESS WHEREOF, HASLO has executed the Promissory Note as of the date as first written above. HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO By:________________________ ________________________ Scott Smith, Executive Director Date CITY OF SAN LUIS OBISPO By: ________________________ _______________________ Katie Lichtig, City Manager Date 6.c Packet Pg. 106 Attachment: c - Promissory Note (1215 : Housing Authority Lease Reassignment and Extension Request) R-2 O-S M M-MU R-1 R-3 R-1 R-3-S R-3 R-4-PD C-S R-1 R-1 R-4 R-3-PD R-4-SP R-3-PD R-3-PD C/O S-SP R-2-PD M R-4-SP R-3-PD C/O S-SP ORCUTTLAURELWO ODSIDEB U L L O C K FERNWOODCAMDEN BRIARWOOD VICINITY MAP 004-961-0471090 Orcutt ¯ 6.d Packet Pg. 107 Attachment: d - Site Map (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 108 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 109 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 110 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 111 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 112 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 113 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 114 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 115 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) 6.e Packet Pg. 116 Attachment: e - Original Agreement A-24-91-CC (1215 : Housing Authority Lease Reassignment and Extension Request) RECORDI' G RE STE 8Y ML O7 ONAM S-MEET CITY Doc No: 1993 - 06966 Official Records 340 3 -81vI. San Luis Obispo Co. J Francis M. Cooney Recorder Nov 08, 1993 Time: 14:29 to] L Rec No: 00082009 NF 0.00 TOTAL 0.00 V ASSIGNMENT OF AGREEMENT A- 24 -91 -CC BETWEEN THE CITY OF SAN LUIS OBISPO AND THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR CITY OWNED PROPERTY LOCATED AT 1090 ORCUTT ROAD FROM HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO TO THE SAN LUIS OBISPO NON - PROFIT HOUSING CORPORATION (approved 12 -1 -92) Whereas, in April of 1991 the City Council deemed City owned property located at 1090 Orcutt Road as surplus to City needs; and Whereas, the City Council subsequently leased (Agreement A-24-91 -CC, hereafter referred to as the Original Lease Agreement) the 1090 Orcutt Road property to the Housing Authority of the City of San Luis Obispo for a fifty -five year period to develop an elderly and handicapped housing project; and Whereas, the Housing Authority of the City of San Luis Obispo has requested to assign their interest in the Original Lease Agreement to their affiliate, the San Luis Obispo Non- Profit Housing Corporation, which was created in 1990 for the purposes of securing advantageous financing for public housing projects; and Whereas, the lease assignment will allow the Housing Authority of the City of San Luis Obispo to secure tax credits that will significantly reduce the cost of the elderly and handicapped housing development; and Whereas, the Original Lease Agreement between the City and the Housing Authority of the City of San Luis Obispo requires written approval from the City Council for any lease assignments to insure that the successor is capable of fulfilling the terms and conditions of the Original Lease Agreement; Whereas, the City has reviewed the performance of the San Luis Obispo Non - Profit Housing. Corporation and. concluded that the Corporation is capable of fulfilling the terms . and conditions of Original. Lease Agreement between the City and Housing Authority of the City of San Luis Obispo. Now, therefore, in consideration of the mutual covenants, conditions, promises and agreements herein, the City and the Housing Authority of the City of San Luis Obispo hereby agree to the./following: 1. The'City hereby consents to the assignment of the Original Lease Agreement with the Housing Authority of the City of San Luis Obispo for City owned_ property located at 1090 Orcutt Road to the San Luis Obispo Non- Profit Housing. Corporation for the purposes of developing an elderly and handicapped housing project.. 2. The San Luis Obispo Non - Profit Housing Corporation, hereby assumes and agrees to fulfill all terms and conditions in the Original Lease Agreement between the City and the Housing Authority of the City of San Luis Obispo, and the same shall remain in full force and effect. A- 24 -91 -CC reassign of orig. lease) 6.f Packet Pg. 117 Attachment: f - First Assignment of Agreement to San Luis Obispo Non-profit Housing Corporation (1215 : Housing Authority Lease Reassignment and Extension Request) In witness whereof this agreement has been executed by: APPROVED: City of San Luis Obispo By: ay Peg Pinard Housing Authority of the City of San Luis Obispo 0 San Luis Obispo Non -Profit Housing Corporation By: i Y ladwel , Ci k c3 APPROVED AS TO FORM: LP- CiV Attorney i:ha.agr 6.f Packet Pg. 118 Attachment: f - First Assignment of Agreement to San Luis Obispo Non-profit Housing Corporation (1215 : Housing Authority Lease State of California County of San Luis Obispo qi On / before irre, f appeared P Yp Y , to me (or proved to me on the basis of satisfactory ev ) to be the perscn(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he/ she /they executed the same in his/hex /their authorized capacity(ies), and that by his /her / their signature(s) on the instrument the person(s), or the entity upon behalf of which the person (s) acted, executed the instrument. WITNESS my hand off' seal. MCraL sFA signature _ (Seal) SHARIE A. ROOT NOTARY PUBLIC • CALIFCRMA SAN LUIS OBISPO COUNTYE9FMyComm. Expires June 20.1994 1 v Y On / before irre, f appeared P Yp Y , to me (or proved to me on the basis of satisfactory ev ) to be the perscn(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he/ she /they executed the same in his/hex /their authorized capacity(ies), and that by his /her / their signature(s) on the instrument the person(s), or the entity upon behalf of which the person (s) acted, executed the instrument. WITNESS my hand off' seal. MCraL sFA signature _ (Seal) SHARIE A. ROOT NOTARY PUBLIC • CALIFCRMA SAN LUIS OBISPO COUNTYE9FMyComm. Expires June 20.1994 1 6.f Packet Pg. 119 Attachment: f - First Assignment of Agreement to San Luis Obispo Non-profit Housing Corporation (1215 : Housing Authority Lease 6.g Packet Pg. 120 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 121 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 122 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 123 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 124 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 125 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 126 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 127 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 128 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 129 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 130 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 131 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 132 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 133 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) 6.g Packet Pg. 134 Attachment: g - Second Assignment of Agreement to Laurel Creek Apartments, LP (1215 : Housing Authority Lease Reassignment and Extension Request) Meeting Date: 2/16/2016 FROM: Michael Codron, Community Development Director Prepared By: Walter Oetzell, Assistant Planner SUBJECT: REVIEW OF AN EXCHANGE OF PROPERTY BORDERING A PARCEL AT 2881 BROAD STREET RECOMMENDATION As recommended by the Planning Commission, adopt a resolution (Attachment A) approving the disposition and acquisition of City owned property bordering the parcel at 2881 Broad Street, under the terms described in the proposed Real Property Exchange Agreement (Attachment B). SITE DATA DISCUSSION An application has been filed for the subdivision of one parcel, located between Stoneridge Drive and Perkins Lane, west of Broad Street, into four lots for single- family residential development. The parcel is somewhat irregular in shape, and is adjacent to a City-owned lot that runs along the southerly side of Stoneridge Drive (“Lot A”, as shown in Attachment E). The boundary between the subject parcel and City lot travels diagonally at an angle to Stoneridge. The applicant wishes to acquire a portion of Lot A from the City in order to align the property boundary with Stoneridge Drive and to make the subject parcel more regular in shape. In exchange, the applicant would offer a portion of the parcel at 2881 Broad to the City to be incorporated into the public right-of-way along Perkins Lane. Site Information and Setting The project site is a gently sloping parcel west of Broad Street and south of Stoneridge Drive. It is located in a Medium-Density Residential (R-2) Zone. The immediate area is characterized by commercial and residential development along Broad Street to the north, south, and east, and by Applicant Dustin Pires Property Owner California Coastal Investments, LLC; Vista Da Praia, LP General Plan Medium Density Residential Zoning Medium-Density Residential, Special Considerations (R-2-S) Environmental Status Categorically exempt from CEQA Review (Guidelines § 15312; Surplus Property Sales) 7 Packet Pg. 135 Figure 1: South side of Stoneridge at Broad, including sign and wall lower-density residential development to the west, along Stoneridge Drive. It was previously developed with a single-family house that was recently demolished. Natural features are limited to several trees on the site. The north side of the site includes extensive shrub growth behind a retaining wall, with several tall palm trees in front of the wall, framing the entry to the Stoneridge development. A residential development sign advertising the Stoneridge development is installed at the corner of Broad and Stoneridge. The sign, shrubs, trees at the entry to the Stoneridge subdivision are all contained on City-owned “Lot A,” and the Stoneridge Homeowner Association has maintained the Stoneridge entry sign. Property Exchange “Lot A” (owned by the City) is situated between the parcel at 2881 Broad and the street right-of- way along Stoneridge Drive. It was created by Tract 1150 (Stoneridge I, see Attachment F), approved in 1986. It is a remnant, non-buildable parcel that resulted from the need to align Stoneridge Drive perpendicular to Broad Street where they intersect. The remnant lot is well outside the area needed for additional right-of-way, and was dedicated in fee to the City by the developer of Stoneridge. The proposed exchange would transfer ownership of Lot A to the owner of the parcel at 2881 Broad Street. The owner would then offer to dedicate part of that property to the City to accommodate future widening of Stoneridge Drive. In return for the property acquired, the owner would dedicate a portion of the southerly edge of 2881 Broad, running along Perkins Figure 2: Configuration before (left) and after (right) proposed exchange 7 Packet Pg. 136 Lane, to the City for use as public right-of-way. The amount of property to be exchanged is summarized as follows: Table 1: Property Exchange Summary Lot A Surplus Property 4,076 sq. ft. Offer to City 819 sq. ft. Portion to owner 3,275 sq. ft. Perkins Lane Dedication Offer to City 2,664 sq. ft. The resolution approving the property exchange authorizes the City Manager to execute a Real Property Exchange Agreement (Attachment B) that formalizes the terms of the exchange. The agreement describes the property to be conveyed to the owner of 2881 Broad and the offers of dedication to be made to the City for public right-of-way purposes, and authorizes the City to decide the means of conveyance. Public improvements (curbs, gutters, sidewalk, etc.) would be made upon subdivision and development of the property. Conditions that must be met prior to the conveyance of the surplus property are listed in Section 4 of the agreement. One of those conditions is a requirement that the owner of 2881 Broad grant to the Stoneridge Homeowner’s Association an easement for the Stoneridge monument sign that is situated on Lot A. Minor Subdivision The parcel at 2881 Broad is proposed to be subdivided with a parcel map into four smaller parcels, as a minor subdivision (Subdivision Regulations § 16.08.010). It has been proposed as a Common Interest Subdivision (Sub. Regs. Ch. 16.17) wherein the resulting parcels will share a common driveway within an easement area. An application for architectural review of four single-family residences has also been submitted in conjunction with this application. The subdivision application will be decided by the Subdivision Hearing Officer, as provided in Subdivision Regulations § 16.04.030(A.1). The Council’s action on the property exchange is independent of the decisions to be made on the subdivision and architectural review applications. CONCURRENCES The Planning Commission reviewed the proposed property exchange at a public hearing on December 9, 2015 to consider its conformity with the City’s General Plan, as required by Government Code § 65402, and determined by unanimous vote that the exchange was in conformance with the General Plan (see Agenda Report and Planning Commission Resolution, Attachment H). The proposed property exchange was reviewed by several City departments (Fire, Public Works, and Utilities) who identified no inconsistency between the proposed property exchange and relevant General Plan goals and policies. ENVIRONMENTAL REVIEW The property exchange is categorically exempt under Class 15312 of the California Environmental Quality Act (CEQA) Guidelines because it involves the disposition and 7 Packet Pg. 137 acquisition of property that does not have significant value for wildlife habitat or other environmental purposes and would qualify for an exemption under any other class of categorical exemption in the CEQA Guidelines. Any future development of the property would be subject to CEQA at the time the project is filed. FISCAL IMPACT The proposed property exchange is not expected to result in any fiscal impact to the City. An appraisal of the property was prepared by Kevin Lewis in September, 2015 (Attachment G). In the opinion of the appraiser, the value of the benefit gained by the owner of 2881 Broad is characterized as “essentially a zero-sum value” wherein the value of the property added by the exchange appears to be offset by the value of the land exchanged and the cost of associated road improvement. It should be noted that the City-owned “Lot A” was a remnant of Tract 1150 that was dedicated to the City, and that the City did not expend funds to acquire the property. ALTERNATIVES 1. Continue review of this request to a future date for additional analysis or research; or 2. Retain the surplus property and do not enter into the Real Property Exchange Agreement to exchange property with the owner of 2881 Broad. This alternative is not recommended because the exchange has been determined to be in conformance with the City’s General Plan, furthers the achievement of several of the Plan’s goals and policies, and facilitates orderly development of adjacent property. Attachments: a - Draft Resolution b - Draft Real Property Exchange Agreement c - Vicinity Map d - Aerial Photograph e - Assessor Parcel Map (Lot A) f - Map of Tract 1150 g - Appraisal of Real Property h - Planning Commission Report and Resolution 7 Packet Pg. 138 RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A REAL PROPERTY EXCHANGE AGREEMENT WITH THE PROPERTY OWNER(S) OF 2881 BROAD STREET, TO EXCHANGE CITY SURPLUS PROPERTY, BEING A PORTION OF LOT A OF TRACT 1150, FOR PROPERTY ALONG THE NORTHERLY EDGE OF PERKINS LANE (SBDV-1990-2015) WHEREAS, the City of San Luis Obispo is a Charter City as defined in the California Constitution article XI, section 5 and may transfer real property as provided by City Charter Section 906; and WHEREAS, title reports show that the City of San Luis Obispo (“City”) has fee ownership of “Lot A” of Tract 1150, and that California Coastal Investment, LLC a California Limited Liability Company, and Vista Da Praia, LP, a California Limited Partnership (collectively referred to herein as “Developers”) have fee ownership to the property known as 2881 Broad Street (APN 004-581-001); and WHEREAS, the City has received a request from the Developers to acquire a portion of “Lot A” of Tract 1150 (“Surplus Property”) in exchange for a portion of 2881 Broad Street at its border with Perkins Drive (“Perkins Street Dedication”), along with the construction of certain improvements that benefit the City and the public; and WHEREAS, the City of San Luis Obispo Planning Commission conducted a public hearing on December 9, 2015, to consider whether the disposition of the “Surplus Property” and the acquisition of the “Perkins Street Dedication” conforms to applicable goals and policies of the City’s General Plan, and found that the proposed exchange is consistent with the City’s General Plan. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct and incorporated herein by this reference. SECTION 2. Findings. Based upon all the evidence, the City Council makes the following findings: 1. The City no longer has need for the portion of “Lot A” of Tract 1150 directly adjacent to 2881 Broad. 2. The property exchange is consistent with the policies of the Land Use and Circulation Elements of the City’s General Plan, and is consistent with similar disposition of property in the immediate vicinity. 7.a Packet Pg. 139 Attachment: a - Draft Resolution (1239 : Property Exchange - 2881 Broad) Resolution No. _____ (2016 Series) Page 2 R _______ SECTION 3. Environmental Review. The property exchange is categorically exempt under Class 15312 of the California Environmental Quality Act (CEQA) Guidelines because it involves the disposition and acquisition of property that does not have significant value for wildlife habitat or other environmental purposes and would qualify for an exemption under any other class of categorical exemption in the CEQA Guidelines. Any future development of the property would be subject to CEQA at the time the project is filed. SECTION 4. The City Council does hereby declare Lot A of Tract 1150 to be surplus property, and that it does not have any significant value as wildlife habitat or other environmental purposes and that, due to the size and shape of the property, it is incapable of independent development or use. SECTION 5. The City Council does hereby approve the proposed property exchange and authorizes the City Manager to execute a Real Property Exchange Agreement substantially in the form attached hereto as Exhibit 1, and authorizes the City Manager and City staff to take action necessary to carry out the intent of this Resolution. On motion of _______________________________________________, seconded by ______________________________________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 16th day of February 2016. ________________________ Mayor Jan Marx ATTEST: ___________________________ Jon Ansolabehere Interim 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 ______________, _________. 7.a Packet Pg. 140 Attachment: a - Draft Resolution (1239 : Property Exchange - 2881 Broad) Resolution No. _____ (2016 Series) Page 3 R _______ ______________________________ Jon Ansolabehere Interim City Clerk 7.a Packet Pg. 141 Attachment: a - Draft Resolution (1239 : Property Exchange - 2881 Broad) RECORDING REQUESTED BY AND WHEN RECORDED, RETURN TO: City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 REAL PROPERTY EXCHANGE AGREEMENT THIS REAL PROPERTY EXCHANGE AGREEMENT (“Agreement”) is dated as of ________________________, 2016, and is made and entered into by and between California Coastal Investments, LLC, a California Limited Liability Company and Vista Da Praia, LP, a California Limited Partnership (collectively “Developers”), and the City of San Luis Obispo, a California municipal corporation and charter city (“City”). Developers and City are collectively referred to as “Parties”. RECITALS A. Developers own that certain real property located at 2881 Broad Street. Said property is described in Exhibit A (“2881 Broad Street”). B. City owns that certain real property located adjacent to 2881 Broad Street. Said City property is described in Exhibit B (“City Property”). C. City acquired City Property in fee as Lot A of Stoneridge Tract 1150 as shown in map recorded in Book 13 of Maps Page 48 on file in the office of the County Recorder of San Luis Obispo County, State of California. D. Said Lot A is a remnant parcel from Tract 1150 (Stoneridge I), dedicated in fee to the City, with the intent that it be included with future development south of Stoneridge Drive. E. Developer wishes to acquire a portion of the City Property conceptually shown in Exhibit C attached hereto (“Surplus Property”) in order to facilitate development of 2881 Broad Street. F. City Council Resolution No. ________________________ made findings regarding the disposition of the Surplus Property. It was determined that City no longer has need for the Surplus Property, and that the disposition of Surplus Property to facilitate residential development is consistent with the policies of the Land Use and Housing Elements of the General Plan. G. In exchange for obtaining Surplus Property, Developers will dedicate right-of-way to the City for street purposes at the easterly end of Perkins Lane to accommodate future street 7.b Packet Pg. 142 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) improvements benefitting the City and the public. The Perkins Lane right-of-way is also conceptually shown in Exhibit C attached hereto (“Perkins Lane Dedication”). AGREEMENT NOW, THEREFORE, in consideration of the above recitals and the mutual covenants set forth below, City and Developers agree as follows: 1. Recitals Incorporated. The above Recitals are true and correct and are incorporated into this Agreement by this reference. 2. Transfer of Real Property. a. Surplus Property to Developers. Upon satisfaction or waiver by City of each and every condition precedent set forth in Section 4 below, City agrees to convey title the Surplus Property to Developers. The method of conveyance shall be by quit claim deed substantially in the form attached hereto as Exhibit E (the “Quit Claim Deed”) b. Perkins Lane Dedication. Subject to the terms and conditions hereof, Developers shall irrevocably offer to dedicate to City the Perkins Lane Dedication to the City substantially in the form attached hereto as Exhibit F (the “Offer of Dedication”). Any fees and property taxes required by County to record the exchange shall be the sole responsibility of Developers. 3. Escrow and Closing. This transaction contemplated by this Agreement shall be consummated through an escrow (“Escrow”) established at First American Title Company, San Luis Obispo, California (“Escrow Company”), or another escrow company mutually agreeable by City and Developers. Upon Escrow Company’s receipt of written notice from City of satisfaction or completion of the conditions precedent set forth in Section 4 below, Escrow Company shall record in the following order: Quit Claim Deed, Offer of Dedication, Street Easement (as defined in Section 4.b), Landscape Easement (as defined in Section 4.c), and Notice of Merger (as defined in Section 4.d), in the Official Records of San Luis Obispo County (“Closing”). All costs and expenses related to this Agreement and Escrow, including, but not limited to, escrow fees, documentary transfer taxes, and recording fees, shall be the sole and absolute responsibility of Developers. 4. Conditions Precedent to Conveyance for City’s Benefit. Closing this transaction and City’s obligation to convey title to the Surplus Property to Developers is expressly conditioned upon Developers completion of the following conditions precedent, which may only be approved or waived by City in writing: a. Developer’s submittal to City of the signed Offer of Dedication in a form approved by the City. b. Developer’s submittal to City of an approved signed offer of dedication in a form approved by the City for a street easement along Stoneridge Drive to accommodate installation of future sidewalk and/or a right-turn lane (“Street 7.b Packet Pg. 143 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) Easement”). The configuration of said easement is conceptually shown in Exhibit D attached hereto. c. Developer’s submittal to City of an approved signed easement agreement between Developers and the Homeowner’s Association for Stoneridge Tracts 1150 and 2126 for an easement at the intersection of Stoneridge Drive and Broad Street to accommodate maintenance and repair of the existing monument sign, electrical service and landscaping for the Stoneridge Tracts 1150 and 2126 subdivisions as noted in Exhibit D (“Landscape Easement”). d. Developer’s submittal to City of an approved signed Notice of Merger merging 2881 Broad and Surplus Property into a single lot (“Notice of Merger”). e. Developer’s submittal of any fees and property taxes, including recording fees and title fees, required by County and the Escrow Company to record the exchange and the associated documents. f. The City’s receipt of an updated preliminary title report from Escrow Company as of the date of the Closing showing title to 2881 Broad Street Property in the name of Developers subject only to the following conditions of title: i. A lien to secure payment of real estate taxes and supplemental taxes, if any, not delinquent; ii. Matters affecting the condition of title created by or with the written consent of City; g. Printed exceptions and exclusions as specified on the Preliminary Title Report approved by City. Submittal by Developers to Escrow any preliminary change of ownership reports. h. Any other documents, information or fees requested by City to consummate this transaction. 5. Condition of Title of Real Property. Developers agree to offer the Perkins Lane Dedication to the City free and clear of any conflicting liens and encumbrances, leases, assessments, easements, and other possessory or non-possessory interests in the real property, except for recorded public utility easements, recorded public rights of way, or other liens or encumbrances approved by the City. Prior to Closing, Developers shall submit a current preliminary title report or Lot Book Guarantee for property overlying the Perkins Lane Dedication area to confirm the acceptability of the condition of title in advance of Closing. 6. Consideration. The Parties agree that Perkins Lane Dedication and Surplus Property are of equal value. The Perkins Lane Dedication provides a significant public benefit as a whole and constitutes adequate consideration for the property transferred, and no monetary consideration shall be exchanged. 7.b Packet Pg. 144 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) 7. “As-Is”; Environmental Indemnity Agreement. AS-IS, WHERE IS To the maximum extent permitted by law, Developers agree to accept the Surplus Property on an “as-is” and “where-is” basis, with all faults and any and all latent and patent defects, and without any representation or warranty, all of which City and its representatives hereby disclaim. As a material part of the consideration for the City’s agreement to enter into the Real Property Exchange Agreement, City shall be released, held harmless and indemnified by Developers and their successors and assigns, and completely protected, to the fullest extent possible under the law, from any and all claims, liabilities and obligations associated with the physical or environmental condition of Surplus Property and Developers and their successors and assigns, as transferees, shall accept all risks, liabilities and financial obligations arising from or relating to the physical and environmental condition of Surplus Property, regardless of the nature or degree of any defect in such condition. 8. Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party regarding any default by the other party shall impair such right or remedy or be construed as a waiver. A party’s consent or approval of any act by the other party requiring consent or approval shall not be deemed to waive or render unnecessary said party’s consent to or approval of any subsequent act of the other party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 9. Legal Action. In addition to any other rights or remedies either party has under this Agreement, either party may take legal action to: (a) cure, correct or remedy any default by the other party; (b) compel specific performance of this Agreement; (c) obtain injunctive relief; or (d) obtain any other remedy consistent with the purpose of this Agreement. 10. Notices. Any notice, demand, request, consent, approval or communication under this Agreement shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed given (a) upon personal delivery or (b) forty-eight (48) hours from deposit of such notice in the United States mail, postage prepaid. To City: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attn: City Manager To Developers: California Coastal Investments, LLC 2436 Broad Street 7.b Packet Pg. 145 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) San Luis Obispo CA 93401 Vista Da Praia Investments, LP PO Box 1410 Arroyo Grande CA 93421 11. Agreement Assignment. Developers shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 12. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 13. Amendment. This Agreement may be amended at any time by the mutual consent of the Parties by a written instrument signed by both Parties. 14. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by so executing this Agreement, the Parties hereto are formally bound to the provisions of this Agreement. 15. Severability. Each term, covenant, condition or provision of this Agreement is intended to be severable. If any term, covenant, condition or provision contained in this Agreement is held to be invalid, void or illegal by any court of competent jurisdiction, such provision shall be deemed severable from the remainder of this Agreement and shall in no way affect, impair o r invalidate any other term, covenant, condition or provision contained in this Agreement. If such term, covenant, condition or provision shall be deemed invalid due to its scope or breadth, such covenant, condition or other provision shall be deemed valid to the extent of the scope or breadth permitted by law. 16. Interpretation. The paragraph headings of this Agreement are for reference and convenience only, are not made part of this Agreement and shall have no effect upon the construction or interpretation of any part hereof. The provisions of this Agreement shall be construed in a reasonable manner to implement the purposes of the Parties and of this Agreement. This Agreement shall be construed as if drafted jointly by City and Developers. 17. Indemnification. Developers shall defend, indemnify, and hold harmless the City or its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees arising out of or related to the City’s approval of this Agreement. The City shall promptly notify Developers of any claim, action, or proceeding received by the City. 18. Entire Agreement. This Agreement represents the entire understanding of City and Developers as to the matters contained herein, and no prior oral or written understanding shall be of any force or effect with respect to the matters covered in this Agreement. 7.b Packet Pg. 146 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) 19. Attorney’s Fees. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party will be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorney's fees, costs, and expenses incurred in the action or proceeding by the prevailing party. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized officers and representatives as of the date first set forth above. CITY OF SAN LUIS OBISPO, a California municipal corporation By: Katie Lichtig City Manager Pursuant to authority conferred by Resolution No. _______ ATTEST: By: ______________________________ Jon Ansolabehere Interim City Clerk APPROVED AS TO FORM: By: ______________________________ J. Christine Dietrick City Attorney DEVELOPERS CALIFORNIA COASTAL INVESTMENTS, LLC, a California Limited Liability Company ____________________________________ Rodessa A Newton, Member ____________________________________ Eric Newton, Member VISTA DA PRAIA INVESTMENTS, LP, a California Limited Partnership By: DC Property Investments, LLC A California limited liability company 7.b Packet Pg. 147 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) its General Partner _________________________ Dustin J. Pires, Manager _________________________ Cristina C. Pires, Manager By: Ezequiel F. Correia, Trustee of the Correia 2005 Living Trust Dated March 1, 2005 its Limited Partner _________________________ Ezequiel F. Correia, Trustee By Maria A. Cr. Correia, Trustee of the Correia 2005 Living Trust Dated March 1, 2005 its Limited Partner _________________________ Maria A. Cr. Correia, Trustee By: Ezequiel R. Correia its Limited Partner _________________________ Ezequiel R. Correia By: Rachel A. Correia its Limited Partner _________________________ Rachel A. Correia By: Dustin J. Pires 7.b Packet Pg. 148 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) its Limited Partner _________________________ Dustin J. Pires By: Cristina C. Pires its Limited Partner _________________________ Cristina C. Pires 7.b Packet Pg. 149 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) Exhibit A Legal Description of 2881 Broad (A.P.N.: 004-581-001) THAT PORTION OF LOT 1 OF YOAKUM POULTRY UNITS, ACCORDING TO MAP RECORDED MARCH 11, 1927, IN BOOK 3, PAGE 89 OF MAPS, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF SAID LOT; THENCE SOUTH 32°29’ EAST ALONG THE NORTHEASTERLY LINE OF SAID LOT, 90 FEET TO THE MOST EASTERLY CORNER OF SAID LOT; THENCE SOUTH 57°31’ WEST ALONG THE SOUTHEASTERLY LINE OF SAID LOT, 171 FEET; THENCE NORTHWESTERLY IN A STRAIGHT LINE TO A POINT IN THE NORTHWESTERLY LINE OF SAID LOT WHICH BEARS SOUTH 66°40’ WEST 163.5 FEET FROM THE MOST NORTHERLY CORNER OF SAID LOT; THENCE NORTH 66°40’ EAST ALONG SAID NORTHWESTERLY LINE OF SAID LOT, 163.5 FEET TO THE POINT OF BEGINNING. End of description. 7.b Packet Pg. 150 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) Exhibit B Legal Description of City Property LOT “A” OF TRACT NO. 1150, ACCORDING TO THE MAP THEREOF, RECORDED SEPTEMBER 10, 1986 IN BOOK 13 OF MAPS, AT PAGE 48, SAN LUIS OBISPO COUNTY RECORDS. End of description. 7.b Packet Pg. 151 Exhibit C 7.b Packet Pg. 152 Exhibit D 7.b Packet Pg. 153 Exhibit E RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Attn: City Clerk 990 Palm Street San Luis Obispo, CA 93401 APN(s): The undersigned grantor(s) declare(s): DOCUMENTARY TRANSFER TAX □ computed on full value of property conveyed; or □ computed on full value less liens and encumbrances remaining at time of sale. □ Unincorporated Area □ City of ______________________ QUITCLAIM DEED FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, the City of San Luis Obispo, a California municipal corporation hereby REMISE(S), RELEASE(S) and QUITCLAIM(S) to California Coastal Investments, LLC, a California Limited Liability Company and Vista Da Praia, LP, a California Limited Partnership a portion of Lot “A” of Tract No. 1150 in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to the map thereof, recorded September 10, 1986, in Book 13 of Maps, at Page 48, in the office of the County Recorder of said county, described as follows: [LEGAL DESCRIPTION OF SURPLUS PROPERTY] CITY OF SAN LUIS OBISPO, a California Municipal Corporation __________________________________ Katie Lichtig, City Manager Pursuant to City Council Resolution No. ______________________________ 7.b Packet Pg. 154 Exhibit F Recording Requested by and when recorded, return to: City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 IRREVOCABLE & PERPETUAL OFFER TO DEDICATE STREET RIGHT OF WAY (Perkins Lane) APN 004-581-001 FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, California Coastal Investments, LLC, a California Limited Liability Company and Vista Da Praia, LP, a California Limited Partnership as OFFERORS, hereby OFFERS to the City of San Luis Obispo, a Municipal Corporation and Charter City, as OFFEREE, an irrevocable easement for public street and utilities purposes upon, over, under and across a portion of certain property described as: That portion of Lot 1 of Yoakum Poultry Units, according to map recorded March 11, 1927, in Book 3, Page 89 of Maps, described as follows: Beginning at the most Northerly corner of said Lot; thence South 32°29’ East along the Northeasterly line of said Lot, 90 feet to the most Easterly corner of said Lot; thence South 57°31’ West along the Southeasterly line of said Lot, 171 feet; thence Northwesterly in a straight line to a point in the Northwesterly line of said Lot which bears South 66°40’ West 163.5 feet from the most Northerly corner of said Lot; thence North 66°40’ East along said Northwesterly line of said Lot, 163.5 feet to the point of beginning. Said irrevocable easement offer is described as follows: [LEGAL DESCRIPTION OF PERKINS LANE DEDICATION] IN WITNESS WHEREOF, OFFERORS hereunto caused its/their name(s) to be subscribed this day of ______________________, 20___. OFFERORS: CALIFORNIA COASTAL INVESTMENTS, LLC, a California Limited Liability Company _________________________ VISTA DA PRAIA INVESTMENTS, LP, a California Limited Partnership _________________________ 7.b Packet Pg. 155 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) Exhibit F (continued) CONSENT OF BENEFICIARY TO SUBORDINATE _____________________________________ is a Beneficiary under that certain Deed of Trust(s) dated _____________________, executed by _________________________________, Trustor, and recorded _________________________________ as Instrument Number(s) ___________________________ of Official Records in the Office of the County Recorder, County of San Luis Obispo, State of California. The Deed of Trust(s) encumber(s) the real property described in the attached offer. As the Beneficiary of said Deed of Trust(s), the undersigned hereby consents (a) to the execution and recordation of the attached Irrevocable & Perpetual Offer to Dedicate Street Right of Way, (b) to the execution and recordation of an easement to the City of San Luis Obispo, if the offer is accepted by the City, and (c) to subordinate the undersigned’s interest in the real property to the Irrevocable & Perpetual Offer to Dedicate Street Right of Way, and the easement. Date: _____________ ______________________________________ Beneficiary Date: _____________ ______________________________________ Beneficiary [Signatures of Beneficiaries must be notarized.] 7.b Packet Pg. 156 Attachment: b - Draft Real Property Exchange Agreement (1239 : Property Exchange - 2881 Broad) R-2-S R-2-S R-1 C-R-SF R-2 R-1 R-1-PD R-2 R-3-PD C-S-SFC-R-SF C-S-S C-R-SF R-2-S C-S-SF R-1-PD C-R-SF C-S-PD C-R-SF B R O A D PERKINSSTONERIDGEVIC INITY MAP SBDV-1988-20152881 Broa d Street ¯ 7.c Packet Pg. 157 Attachment: c - Vicinity Map (1239 : Property Exchange - 2881 Broad) med dens res genl retaillow dens res serv man serv man serv m an B R O A D PERKINSSTONERIDGEMUTSUHITOR-2-S R-2-S R-1 R-2 C-R-SF R-1-PD C-R-SF C-R-SF C-S-SF R-1-PD C-S-SF C-S-PD 635 639 643 670 631 630630 647 698 636 646 651 683 630 630 646 646 667 679 675 671 663 659 655 660638 2845 2871 29592959 2916 2800 2959 2881 2903 2900 2900 2959 2907 2911 2912 2916 2875 2845 1/2 7.d Packet Pg. 158 Attachment: d - Aerial Photograph (1239 : Property Exchange - 2881 Broad) 7.e Packet Pg. 159 Attachment: e - Assessor Parcel Map (Lot A) (1239 : Property Exchange - 2881 Broad) 7.f Packet Pg. 160 Attachment: f - Map of Tract 1150 (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 161 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 162 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 163 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 164 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 165 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 166 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 167 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 168 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 169 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 170 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 171 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 172 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 173 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 174 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 175 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 176 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 177 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 178 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) 7.g Packet Pg. 179 Attachment: g - Appraisal of Real Property (1239 : Property Exchange - 2881 Broad) Meeting Date: December 9, 2015 Item Number: 2 PLANNING COMMISSION AGENDA REPORT SUBJECT: A determination of whether the disposition and acquisition of property bordering a parcel at 2881 Broad Street Drive is in conformance with the City's General Plan ADDRESS: 2881 Broad Street BY: Walter Oetzell, Assistant Planner FILE: SUBDV-1988-2015 Phone: 781-7593 e-mail: woetzell@slocity.org FROM: Tyler Corey,Interim Deputy Director RECOMMENDATION: Adopt a resolution (Attachment 1), finding that the proposed property exchange is consistent with General Plan goals and policies. SUMMARY Applicant California Coastal Investments, LLC Representative Dustin Piers Application Filed October 29, 2015 Deemed Complete (pending) General Plan Medium Density Residential Zoning Medium-Density Residential, Special Considerations (R-2-S) Environmental Status Categorically exempt from CEQA Review (§ 15312-Surplus Property Sales) An application has been filed for the subdivision of one parcel, located between Stoneridge Drive and Perkins Lane, west of Broad Street, into four lots for single-family residential development. The parcel is somewhat irregular in shape, and is adjacent to a City-owned lot that runs along the southerly side of Stoneridge Drive (“Lot A”, as shown in Attachment 4). The boundary between the subject parcel and City lot travels diagonally at an angle to Stoneridge. The applicant wishes to obtain the property from the City in order to align the property boundary with Stoneridge Drive and to make the subject parcel more regular in shape. In exchange, the applicant would offer a portion of the subject parcel, along with certain public improvements, to the City to be incorporated into the public right-of-way along Perkins Lane. PC2 - 1 7.h Packet Pg. 180 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) SUBDV-1988-2015 (159 Broad) Page 2 COMMISSION PURVIEW Pursuant to Government Code § 65402, the Planning Commission will consider the disposition and acquisition of property as to conformity with the City’s General Plan. The determination of the Commission will be forwarded to the City Council as a recommendation on the exchange of a portion the City-owned lot along Stoneridge Drive for property and improvements along Perkins Lane. PROJECT INFORMATION Site Information and Setting The project site is a gently sloping parcel west of Broad Street and south of Stoneridge Drive. It is located in a Medium-Density Residential (R-2) Zone. The immediate area is characterized by commercial and residential development along Broad Street to the north, south, and east, and by lower-density residential development to the west, along Stoneridge Drive. It was previously developed with a single-family house that was recently demolished. Natural features are limited to several trees on the site. The north side of the site includes extensive shrub growth behind a retaining wall, with several tall palm trees in front of the wall, framing the entry to the Stoneridge development. A residential development sign advertising the Stoneridge development is installed at the corner of Broad and Stoneridge. The landscaping, trees, and sign for the entry to the Stoneridge subdivision are all contained on City-owned “Lot A” with the Stoneridge Homeowner Association responsible for maintenance of the landscaping and the sign. Minor Subdivision The subject parcel is proposed to be subdivided with a parcel map into four smaller parcels, as a minor subdivision (Subdivision Regulations § 16.08.010). It has been proposed as a Common Interest Subdivision (Sub. Regs. Ch. 16.17) wherein three of the four resulting parcels share a common driveway within an easement area. An application for architectural review of four single-family residences has also been submitted in conjunction with this application. The subdivision application will be decided by the Subdivision Hearing Officer, as provided in Subdivision Regulations § 16.04.030(A.1). Figure 1: South side of Stoneridge at Broad, including sign and wall PC2 - 2 7.h Packet Pg. 181 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) SUBDV-1988-2015 (159 Broad) Page 3 Property Exchange “Lot A” measures 3,956 square feet in area and is situated between the subject parcel (to be subdivided) and Stoneridge Drive. It was created by Tract 1150 (Stoneridge I), approved in 1986. It is a remnant non-buildable parcel that resulted from the need to align Stoneridge Drive perpendicular to Broad Street where they intersect. As the remnant was well outside the area needed for additional right-of-way, the developer of Stoneridge agreed to dedicate this extra land in fee to the City, with the intent that it be included with future development south of Stoneridge. The proposed exchange would transfer ownership of a portion of Lot A to the owner of the parcel at 2881 Broad Street, with a strip of land retained by the City for future widening of Stoneridge Drive. In return, the property owner would dedicate a portion of the parcel at 2881 Broad running along Perkins Lane, with improvements, to the City for use as public right-of-way. EVALUATION In considering conformity to the General Plan, evaluation is focused on the policies of the Land Use Element and the goals and policies of the Circulation Element as they apply to any need the City may have for Lot A in providing adequate vehicle and pedestrian circulation. Land Use Element (LUE) Neighborhood Connections: There should be continuous sidewalks or paths of adequate width [...] to provide continuous pedestrian paths throughout the City (§ 2.2.4). Compatible Development: New development shall match the typical range of setbacks used in areas adjacent to the project (§ 2.3.9(A)) Table 1: Property Exchange Lot A (Stoneridge) Original Size 3,956 sq. ft. Portion to owner 2,213 sq. ft. Portion retained 1,743 sq. ft. Offer to City (Perkins) 3,633 sq. ft. Figure 2: Configuration before (left) and after (right) proposed exchange PC2 - 3 7.h Packet Pg. 182 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) SUBDV-1988-2015 (159 Broad) Page 4 The proposed property exchange results in a parcel with a more regular and rectilinear shape, whose boundary more closely conforms to the neighborhood pattern. This allows for setbacks that more closely match those provided on the adjacent property. The property offered to the City along Perkins will be improved with curb, gutter, and sidewalk, enhancing the street and extending pedestrian network along the property frontage. The subject site will be developed for medium-density residential use in conformance to the use and density limitations associated with its designation in the General Plan for Medium Density Land Use. The layout and configuration of lots and the location and arrangement of structures on the property will be evaluated through the City’s subdivision and architectural review process for consistency with applicable regulations, policies, and guidelines set forth in the City’s General Plan, Subdivision Regulations, Zoning Regulations, and Community Design Guidelines. Circulation Element Stoneridge Drive and Perkins Lane are classified as Local Streets in Figure 1 (Streets Classification Diagram) of the Circulation Element. The site will be developed for medium-density residential use, and the adequacy of the circulation network in providing safe and efficient circulation for this type of development has been evaluated in the General Plan. Sidewalks and Paths: The City should complete a continuous pedestrian network connecting residential areas with major activity centers… (§ 5.1.2) Complete Streets: The City shall design and operate City streets to enable safe, comfortable, and convenient access and travel for users of all abilities including pedestrians, bicyclists, transit users, and motorists. The proposed property exchange would enhance the City’s goals for safe and efficient circulation in that it includes improvement of Perkins Lane with sidewalk, curbs, and gutters. Disposition of Lot A would not conflict with circulation goals because most of it is not needed for street purposes. A portion of the lot will, however, be retained by the City to allow for the future development of a “right-turn pocket” leading to Broad Street, should the need arise. DEVELOPMENT REVIEW The proposed property exchange has been reviewed by several City departments (Fire, Public Works, and Utilities). Review of the subdivision and architectural review applications by these departments is ongoing; however, they have identified no inconsistency between the proposed property exchange and relevant General Plan goals and policies. ENVIRONMENTAL REVIEW This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) because it involves the disposition of surplus property, as described in § 15312 of the CEQA Guidelines. PC2 - 4 7.h Packet Pg. 183 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) SUBDV-1988-2015 (159 Broad) Page 5 ALTERNATIVES 1. Find that the disposition of Lot A or acquisition of property offered by the owner of 2881 Broad conflicts with General Plan goals or policies, and recommend to the City Council that they do not approve the proposed property exchange. 2. Continue consideration of a determination of General Plan consistency to a future date, with specific direction to staff and the project applicant on pertinent issues or necessary information. ATTACHMENTS 1. Draft Resolution 2. Vicinity Map 3. Assessor Parcel Map depicting “Lot A” 4. Map of Tract 1150 5. Exhibit - Property disposition and acquisition 6. Aerial photograph PC2 - 5 7.h Packet Pg. 184 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) RESOLUTION NO. PC-####-15 A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION DETERMINING THAT DISPOSITION OF A PORTION OF A CITY-OWNED LOT AT THE SOUTHERLY EDGE OF STONERIDGE DRIVE AND ACQUISITION OF PROPERTY ALONG THE NORTHERLY EDGE OF PERKINS LANE, ADJACENT TO PROPERTY LOCATED AT 2881 BROAD STREET IS IN CONFORMANCE WITH THE GOALS AND POLICIES OF THE GENERAL PLAN (SUBDV-1988-2015) WHEREAS, California law requires a local planning agency to report on the location, purpose, and extent of an acquisition or disposition of real property as to conformity with an adopted General Plan; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on December 9, 2015, to consider the disposition and acquisition of property as part of a proposed minor subdivision, pursuant to a proceeding instituted under application SUBDV- 1988-2015, California Coastal Investments, LLC, applicant; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the Commission makes the following findings: 1. Acquisition of property adjacent to Perkins Lane will enhance the pedestrian network by extending new sidewalk facilities of an appropriate width, which will provide a better connection between residential neighborhoods to activity centers along Broad Street. 2. Acquisition of property adjacent to Perkins Lane will facilitate development that matches the setbacks used along Perkins Lane by aligning the right-of-way and associated public improvements along the subject property with that of the adjacent property. 3. The proposed disposition and acquisition of property enhances the safety, comfort, and convenience of access and travel for pedestrians, bicyclists, transit users, and motorists by enabling the construction of improved street and sidewalk ATTACHMENT 1 PC2 - 6 7.h Packet Pg. 185 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) Resolution No. PC ####-15 Page 2 SUBDV-1998-2015 (2881 Broad) facilities along Perkins Lane and by retaining sufficient property along Stoneridge Drive to accommodate a future “right-turn pocket” leading to Broad Street. 4. The property proposed to be disposed of is not required for streets or other public right-of-way, and sufficient property is retained by the City adjacent to Stoneridge Drive to provide for street widening that may be needed in the future to meet circulation goals set forth in the Circulation Element of the General Plan. SECTION 2. Environmental Review The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), as it is a Minor Land Division, as described in §15315 of the CEQA Guidelines. SECTION 3. Action. The Commission hereby determines that the disposition of property along the southerly edge of Stoneridge Drive, west of Broad Street and the acquisition of property along the northerly edge of Perkins Lane, west of Broad Street, conforms to applicable goals and policies of the City’s General Plan. On motion by Commissioner ___________, seconded by Commissioner _____________, and on the following roll call vote: AYES: NOES: REFRAIN: ABSENT: The foregoing resolution was passed and adopted this 9th day of December, 2015. _____________________________ Tyler Corey, Secretary Planning Commission ATTACHMENT 1 PC2 - 7 7.h Packet Pg. 186 Attachment: h - Planning Commission Report and Resolution (1239 : Property Exchange - 2881 Broad) Meeting Date: 2/16/2016 FROM: Garret Olson, Fire Chief Prepared By: Julie Cox, Administrative Analyst SUBJECT: 2015 ASSISTANCE TO FIREFIGHTERS GRANT APPLICATION RECOMMENDATION 1. Authorize Fire Department staff to continue the process for a grant application to Federal Assistance to Firefighters Grant Program in the amount of $23,840 to purchase one Respirator/Self-Contained Breathing Apparatus (“SCBA”) Quantitative Fit Tester and one Extractor Washer; and 2. Authorize City Manager to execute documents necessary to appropriate the grant funds upon notification that the grant has been awarded; and 3. Delegate the Purchase Authority to the Finance and Information Technology Director to review quotes and award contracts or purchase orders. DISCUSSION Background State and federal grants are occasionally offered to assist local governments with the financial impacts associated with daily operations and/or mandated programs. The Federal Assistance to Firefighters Grant Program is one of these programs. The purpose of this program is to award one-year grants directly to fire departments to enhance their abilities with respect to fire and fire - related hazards. In fiscal year 2015, Congress appropriated $306 million dollars for this purpose. Grant Request The City of San Luis Obispo is requesting authorization to continue the grant application process for two essential items: 1) one respirator/self-contained breathing apparatus quantitative fit tester (“fit tester”) and 2) one personnel protective equipment extractor washer (“extractor washer”). Each item requested is described below. Respirator/Self-Contained Breathing Apparatus Quantitative Fit Tester: The Department currently rents a fit tester annually to conduct Occupational Safety and Health Administration (“OSHA”) and National Institute for Occupational Safety and Health (“NIOSH”) required testing for all personnel who use SCBA’s or respirators to perform their jobs. Until recently, the vendor of the Department’s SCBA equipment provided annual fit testing as p art of the original purchase at no additional cost to the Department. The vendor is no longer willing to provide this service. Currently, the Department has two personnel who are trained to perform the 8 Packet Pg. 187 annual required fit testing and have been using a rented fit tester. This rental costs $816 per month, and due to the size of our Department and our turnover rate, the Department would benefit from having a fit tester at least 3-4 months per year at a rate of approximately $2,500 to $3,200 per year, which is unbudgeted due to the prior zero-cost arrangement with our supplier. The financial benefit of owning a fit tester would be realized within 3-4 years. The fit tester will enable the Department to conduct annual fit testing for all 49 personnel who wear SCBA or other respirators. The Department’s respirator program is compliant with National Fire Protection Association (“NFPA”) 1500 – Standard on Fire Department Occupational Safety and Health Department Program as well as applicable OSHA, ANSI and NIOSH standards. The cost estimate for the fit tester kit, software, calibration, and supplies with tax/shipping is $12,370. There is no additional cost for training, or other equipment like a laptop or desktop computer. This is a first time purchase to support the Department mission. Extractor Washer: The extractor washer and soap injector unit is requested to replace the 17-year-old, significantly worn extractor washer. The extractor washer is an industrial-grade washing machine designed to remove contaminants from firefighter structural firefighting protective garments (“turnouts”). Given its age, the current extractor washer is difficult to repair and in need of replacement. It provides unreliable service for a vital safety function. The existing extractor washer serves the entire department, which includes 86 sets of turnouts which require decontamination after every significant fire/smoke exposure due to the presence of carcinogens in smoke that embed themselves in fabric. Washing the turnouts also extends their in-service capability. Proper cleaning of firefighting safety gear must meet Cal OSHA, NFPA and risk management expectations for a healthy workplace. A new extractor washer is essential to continue to meet OSHA and NFPA standards, to maximize the safe lifespan of our essential life safety gear, and to keep our responders safe and healthy. Estimated cost for the extractor washer is $8,700, additional costs include: base frame for the extractor washer $500, installation $1,100 and sales tax $770 for a total cost of $11,470. The extractor washer is past its anticipated useful lifespan, and failure of the extractor washer will put the Department at a critical juncture in providing a core mission. FISCAL IMPACT If the City receives full funding from the Assistance to Firefighter Grant Program for the requested equipment ($23,840), we would have to match the Federal grant funds equal to 10% ($2,167) of the total project cost. Fire Department budgeted funds will be used for the grant match. ALTERNATIVES 8 Packet Pg. 188 The Council could decide not to pursue the grant monies. This is not recommended as fire service grant opportunities are limited and the grant funds would only serve to enhance the effectiveness of the Fire Department. 8 Packet Pg. 189 Page intentionally left blank. Meeting Date: 2/16/2016 FROM: Daryl Grigsby, Public Works Director Prepared By: Jake Hudson, Transportation Manager SUBJECT: MUNICIPAL CODE TITLE 10: VEHICLES AND TRAFFIC AMENDMENTS RECOMMENDATION Adopt Ordinance No. 1628 (2016 Series) amending Municipal Code Title 10: Vehicle & Traffic to reflect current city organizational structure. DISCUSSION An ordinance amending Municipal Code Title 10: Vehicles & Traffic (Attachment A) was introduced at the January 5, 2016 City Council meeting. Current Municipal Code language reflects an organizational structure that dates back prior to the 1980’s, and the proposed amendments update Title 10 to reflect current organizational structure to clarify roles and authority. CONCURRENCES The City Attorney’s Office concurs with the staff recommendation. FISCAL IMPACT There is no fiscal impact associated with the staff recommendation. ALTERNATIVES The Council may choose not to adopt the ordinance amending Municipal Code Title 10. However this is not recommended because the existing Municipal Code language does not reflect the current City organizational structure. Attachments: a - 2-5-16 Staff Report b - Ordinance 9 Packet Pg. 190 9.a Packet Pg. 191 Attachment: a - 2-5-16 Staff Report (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) 9.a Packet Pg. 192 Attachment: a - 2-5-16 Staff Report (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) O 1628 ORDINANCE NO. 1628 (2016 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING MUNICIPAL CODE TITLE 10 REGARDING VEHICLES AND TRAFFIC NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 10.08.010 of the San Luis Obispo Municipal Code, entitled Office of the city traffic engineer established – Authority to place and maintain traffic control devices, is hereby amended to read as follows: 10.08.010 Office of city traffic engineer established—Authority to place and maintain traffic-control devices. The office of city traffic engineer is established. The city traffic engineer shall be the city engineer until the council shall authorize the creation of a separate officer, and he or she The Public Works Director or their designee(s) shall exercise the powers and duties as provided in Section 10.08.020 and in the traffic regulations of this city. Whenever the Public Works Director or their designee(s) is required or authorized to place or maintain official traffic-control devices or signals, he or she may cause such devices or signals to be placed or maintained SECTION 2. Section 10.08.020 of the San Luis Obispo Municipal Code, entitled Traffic engineer’s powers and duties, is hereby amended to read as follows: 10.08.020 Traffic engineer’s pPowers and duties. It shall be the general duty responsibility of the city traffic engineer the Public Works Director or their designee(s) to place and maintain or cause to be placed and maintained such traffic signals and other traffic control devices upon streets and highways as required hereunder and may place and maintain or cause to be placed and maintained such appropriate signs, signals, or other traffic control devices as may be authorized hereunder or as may be necessary to properly indicate and to carry out the provisions of this code and the California Vehicle Code to warn or guide traffic within the City of San Luis Obispo. These duties shall generally include but are not limited to 1) determine the installation and proper timing and maintenance of traffic-control devices and signals, 2) to conducting engineering analyses of traffic accidents and to devise remedial measures, 3) to conducting engineering and traffic investigations of traffic conditions, 4) to recommending traffic-control devices for inclusion in the capital improvement program and present plans for consideration by the council, 5) and approving field modifications of traffic control devices through work conducted by City staff or contractors, 6) to cooperate with other city officials in the development of ways and means to improve traffic conditions, 7) and to carry out the additional powers and duties imposed by ordinances of this city. Whenever, by the provisions of this title, a power is granted to the city traffic engineer the Public Works Director or their designee(s) or a duty imposed 9.b Packet Pg. 193 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 2 O ______ upon him or her, the power may be exercised or the duty performed by him or her. or by his or her deputy or by a person authorized in writing by him or her. SECTION 3. Section 10.08.030 of the San Luis Obispo Municipal Code, entitled Traffic-control devices and markings—Installation and maintenance, is hereby amended to read as follows: 10.08.030 Traffic-control devices and markings—Installation and maintenance. The physical maintenance of traffic-control devices and markings shall be handled by the public works services department. The installation of devices, signs or markings authorized by city traffic engineer the Public Works Director or their designee(s) will be either by contract or through the public services works department. SECTION 4. Section 10.12.020 of the San Luis Obispo Municipal Code, entitled Persons other than officials shall not direct traffic, is hereby amended to read as follows: 10.12.020 Persons other than officials shall not direct traffic. No person other than an officer of the police department or members of the fire department or a person authorized by the chief of police or a person authorized by law shall direct or attempt to direct traffic by voice, hand or other signal, except that persons may operate, when and as provided in this title, any mechanical pushbutton signal erected by order of the Public Works Director or their designee(s) traffic engineer. SECTION 5. Section 10.14.010 of the San Luis Obispo Municipal Code, entitled Authority to place and maintain, is hereby amended to read as follows: 10.14.010 Authority to place and maintain. A. The Public Works Director or their designee(s) city traffic engineer shall have the power and duty to place or cause to be placed official traffic-control devices when and as required to make effective the provisions of this title. B. Whenever the Vehicle Code requires for the effectiveness of any provision thereof that traffic-control devices be installed to give notice to the public of the application of such law, the Public Works Director or their designee(s) city traffic engineer is authorized to install or cause to be installed the necessary devices subject to any limitations or restrictions set forth in the law applicable thereto. C. The Public Works Director or their designee(s) city traffic engineer may also place or cause to be placed such additional traffic-control devices as he or she may deem necessary or proper to regulate traffic or to guide or warn traffic, but he or she shall make such determination only upon the basis of traffic engineering principles and traffic investigations and in accordance with such standards, limitations and rules as may be set forth in this chapter or as may be determined by ordinance or resolution of the council. 9.b Packet Pg. 194 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 3 O ______ SECTION 6. Section 10.14.040 of the San Luis Obispo Municipal Code, entitled Traffic signal installation, is hereby amended to read as follows: 10.14.040 Traffic signal installation. A. The Public Works Director or their designee(s) city traffic engineer is directed to install official traffic signals at those intersections and other places where traffic conditions are such as to require that the flow of traffic be alternately interrupted and released in order to prevent or relieve traffic congestion or to protect life or property from exceptional hazard. B. The Public Works Director or their designee(s) city traffic engineer shall ascertain and determine the locations where such signals are required by field investigation, traffic counts and other traffic information as may be pertinent and his or her determinations therefrom shall be made in accordance with those traffic engineering and safety standards and instructions set forth in the Traffic Manual issued by the California Department of Transportation. C. Whenever the Public Works Director or their designee(s) city traffic engineer installs an official traffic signal at any intersection, he or she shall likewise erect at such intersection street name signs visible to the principal flow of traffic unless such street name signs have previously been placed and are maintained at any such intersection. SECTION 7. Section 10.14.050 of the San Luis Obispo Municipal Code, entitled Lane marking, is hereby amended to read as follows: 10.14.050 Lane marking. The Public Works Director or their designee(s) city traffic engineer is authorized mark centerlines and lane lines upon the surface of the roadway to indicate the course to be traveled by vehicles and may place signs temporarily designating lanes to be used by traffic moving in a particular direction, regardless of the centerline of the highway. SECTION 8. Section 10.14.060 of the San Luis Obispo Municipal Code, entitled Distinctive roadway markings – Authority to place, is hereby amended to read as follows: 10.14.060 Distinctive roadway markings—Authority to place. The Public Works Director or their designee(s) city traffic engineer is authorized to place distinctive roadway markings as described in the Vehicle Code on those streets or parts of streets where the volume of traffic or the vertical or other curvature of the roadway renders it hazardous to drive on the left side of such marking or signs and markings. Such markings or signs and markings shall have the same effect as similar markings placed by the State Department of Transportation pursuant to the provisions of the Vehicle Code. SECTION 9. Section 10.14.070 of the San Luis Obispo Municipal Code, entitled Removal, relocation and discontinuance - Authority, is hereby amended to read as follows: 10.14.070 Removal, relocation and discontinuance—Authority. The Public Works Director or their designee(s) city traffic engineer is authorized to remove, relocate or discontinue the operation of any traffic-control device not specifically 9.b Packet Pg. 195 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 4 O ______ required by the Vehicle Code or this title whenever he or she shall determine in any particular case that the conditions which warranted or required the installation no longer exist. SECTION 10. Section 10.14.080 of the San Luis Obispo Municipal Code, entitled Hours of operation, is hereby amended to read as follows: 10.14.080 Hours of operation. The Public Works Director or their designee(s) city traffic engineer shall determine the hours and days during which any traffic-control device shall be in operation or be in effect, except in those cases where such hours or days are specified in this title. SECTION 11. Section 10.16.010 of the San Luis Obispo Municipal Code, entitled Turning markers – Authority to place – Obedience to required, is hereby amended to read as follows: 10.16.010 Turning markers—Authority to place—Obedience to required. A. The Public Works Director or their designee(s) city traffic engineer is authorized to place markers, buttons or other official traffic-control signs within or adjacent to intersections and indicating the course to be traveled by vehicles turning at such intersections, and the Public Works Director or their designee(s) city traffic engineer is authorized to locate and indicate more than one lane of traffic from which drivers of vehicles may make right or left hand turns, and the course to be traveled as so indicated may conform to or be other than as prescribed by law or ordinance. B. When authorized markers, buttons or other indications are placed within an intersection indicating the course to be traveled by vehicles turning thereat, no driver of a vehicle shall disobey the directions of such indications. SECTION 12. Section 10.16.020 of the San Luis Obispo Municipal Code, entitled Restricted turn signs Authority to place, is hereby amended to read as follows: 10.16.020 Restricted turn signs Authority to place. The Public Works Director or their designee(s) traffic engineer is authorized to determine those intersections at which drivers of vehicles shall not make a right, left or U-turn, and shall place proper signs at such intersections. The making of such turns may be prohibited between certain hours of any day and permitted at other hours, in which event the same shall be plainly indicated on the signs or they may be removed when such turns are permitted. 9.b Packet Pg. 196 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 5 O ______ SECTION 13. Section 10.16.040 of the San Luis Obispo Municipal Code, entitled No free right turn on red light signs Obedience required—Sign posting, is hereby amended to read as follows: 10.16.040 No free right turn on red light signs Obedience required—Sign posting. A. No driver of a vehicle shall make a right turn against a red or stop signal at any intersection which is sign-posted giving notice of such restriction a provided in subsection B of this section. B. The Public Works Director or their designee(s) city traffic engineer shall post appropriate signs giving effect to this section where he or she determines that the making of right turns against a traffic signal “stop” indication would seriously interfere with the safe and orderly flow of traffic. SECTION 14. Section 10.20.010 of the San Luis Obispo Municipal Code, entitled Sign posting, is hereby amended to read as follows: 10.20.010 Sign posting. Whenever any ordinance or resolution of this city designates any one-way street or alley, the Public Works Director or their designee(s) city traffic engineer shall place signs giving notice thereof, and no such regulations shall be effective unless such signs are in place. Signs indicating the direction of lawful traffic movement shall be placed at every intersection where movement of traffic in the opposite direction is prohibited. (Prior code § 3205) SECTION 15. Section 10.24.010 of the San Luis Obispo Municipal Code, entitled Stop signs – Erection – Removal – Obedience to required, is hereby amended to read as follows: 10.24.010 Stop signs—Erection—Removal—Obedience to required. The Public Works Director or their designee(s) city traffic engineer is authorized to erect stop signs at those locations where he or she deems such controls to be necessary or remove those signs no longer warranted in order to protect the public safety. When signs are erected giving notice thereof, drivers of vehicles shall stop at the entrance or entrances to such intersections. SECTION 16. Section 10.28.030 of the San Luis Obispo Municipal Code, entitled Riding or driving on sidewalk, is hereby amended to read as follows: 10.28.030 Riding or driving on sidewalk. No person shall ride, drive, propel, or cause to be propelled, any vehicle or animal across or upon any sidewalk excepting over permanently constructed driveways and excepting when it is necessary for any temporary purpose to drive a loaded vehicle across a sidewalk; provided further, that the sidewalk area be substantially protected by wooden planks two inches thick, and written permission be previously obtained from the Public Works Director or their designee(s) city traffic engineer. Such wooden planks shall not be permitted to remain upon such sidewalk area during the hours from six p.m. to six a.m. 9.b Packet Pg. 197 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 6 O ______ SECTION 17. Section 10.28.060 of the San Luis Obispo Municipal Code, entitled Barriers and signs—Placing or erecting—Tampering with—Obedience to required, is hereby amended to read as follows: 10.28.060 Barriers and signs—Placing or erecting—Tampering with—Obedience to required. No person, public utility or department in the city shall erect or place any barrier or sign on any street unless of a type approved by the Public Works Director or their designee(s) city traffic engineer or disobey the instructions, remove, tamper with or destroy any barrier or sign lawfully placed on any street by any person, public utility or by any department of this city. SECTION 18. Section 10.32.010 of the San Luis Obispo Municipal Code, entitled Crosswalks - Establishment, is hereby amended to read as follows: 10.32.010 Crosswalks—Establishment. A. The Public Works Director or their designee(s) city traffic engineer shall establish and designate crosswalks at intersections and other places by appropriate devices, marks or lines upon the surface of the roadway as follows: Crosswalks shall be established and maintained at all intersections within the central traffic district and at such intersections outside such districts, and at other places within or outside the district where the Public Works Director or their designee(s) city traffic engineer determines that there is particular hazard to pedestrians crossing the roadway, subject to the limitations contained in subsection B of this section. B. Other than crosswalks at intersections, no crosswalk shall be established in any block which is less than four hundred feet in length and such crosswalk shall be located as nearly as practicable at midblock. C. The Public Works Director or their designee(s) city traffic engineer may place signs at or adjacent to an intersection in respect to any crosswalk directing that pedestrians shall not cross in the crosswalk so indicated. SECTION 19. Section 10.36.010 of the San Luis Obispo Municipal Code, entitled Applicability of provisions – Temporary alteration of parking controls and regulations by traffic engineer, is hereby amended to read as follows: 10.36.010 Applicability of provisions—Temporary alteration of parking controls and regulations by Public Works Director or their designee(s) traffic engineer. A. The provisions of this chapter prohibiting the stopping, standing or parking of a vehicle shall apply at all times or at those times as specified in this chapter, except when it is necessary to stop a vehicle to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic-control device. B. The provisions of this chapter imposing a time limit on standing or parking shall not relieve any person from the duty to observe other and more restrictive provisions of the 9.b Packet Pg. 198 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 7 O ______ Vehicle Code or the ordinances of this city prohibiting or limiting the standing or parking of vehicles in specified places or at specified times. C. The Public Works Director or their designee(s) city traffic engineer or his or her designated alternate may, at his or her discretion, set aside, suspend or relocate parking controls and regulations on a temporary basis when it is found to be in the public interest or required for traffic safety. Before any such temporary change may become effective, the Public Works Director or their designee(s) city traffic engineer shall receive the police department’s approval for the change and have the change posted. SECTION 20. Section 10.36.030 of the San Luis Obispo Municipal Code, entitled Maintenance of no stopping an no parking zones – city traffic engineer duty – Compliance with markings required, is hereby amended to read as follows: 10.36.030 Maintenance of no stopping and no parking zones— Public Works Director or their designee(s) city traffic engineer duty—Compliance with markings required. A. Public Works Director or their designee(s) city traffic engineer is authorized to maintain, by appropriate signs or by paint upon the curb surface, all no stopping zones, no parking areas, and restricted parking areas, as defined and described in this chapter. B. When the curb markings or signs are in place, no operator of any vehicle shall stop, stand or park such vehicle adjacent to any such legible curb marking or sign in violation of any of the provisions of this chapter. SECTION 21. Subsection C of Section 10.36.040 of the San Luis Obispo Municipal Code, entitled No parking areas, is hereby amended to read as follows: C. In any area where the Public Works Director or their designee(s) city traffic engineer determines that the parking or stopping of a vehicle would constitute a traffic hazard or would endanger life or property, when such area is indicated by appropriate signs or by red paint upon the curb surface; SECTION 22. Section 10.36.090 of the San Luis Obispo Municipal Code, entitled Parking adjacent to schools, is hereby amended to read as follows: 10.36.090 Parking adjacent to schools. A. The Public Works Director or their designee(s) city traffic engineer is authorized to erect signs indicating no parking upon that side of any street adjacent to any school property when such parking would, in his or her opinion, interfere with traffic or create a hazardous situation. B. When official signs are erected prohibiting parking upon that side of a street adjacent to any school property, no person shall park a vehicle in any such designated place. 9.b Packet Pg. 199 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 8 O ______ SECTION 23. Subsection A of Section 10.36.100 of the San Luis Obispo Municipal Code, entitled Parking prohibited on narrow streets, is hereby amended to read as follows: 10.36.100 Parking prohibited on narrow streets. A. The Public Works Director or their designee(s) city traffic engineer is authorized to place signs or markings indicating no parking upon any street when the width of the roadway does not exceed twenty feet, or upon one side of a street as indicated by such signs or markings when the width of the roadway does not exceed thirty feet. SECTION 24. Section 10.36.140 of the San Luis Obispo Municipal Code, entitled Parking of large or commercial vehicles near intersections, is hereby amended to read as follows: 10.36.140 Parking of large or commercial vehicles near intersections. No person shall park any vehicle greater than six feet in height, including any load thereon, within one hundred feet of any intersection at any time. This section shall not apply to any particular intersection until signs or markings giving adequate notice thereof have been placed as determined appropriate by Public Works Director or their designee(s) the city engineer. SECTION 25. Section 10.36.190 of the San Luis Obispo Municipal Code, entitled Designation of residential parking permit areas – Sign posting, is hereby amended to read as follows: 10.36.190 Designation of residential parking permit areas—Sign posting. Upon adoption of a resolution by the council designating an area of the city as a residential parking permit area, the Public Works Director or their designee(s) city traffic engineer shall cause appropriate signs to be erected along the streets identified in the resolution which shall give notice of the limitation on the parking of vehicles in the area as provided in Section 10.36.170, and shall indicate the hours and days when such limitations shall be in effect. SECTION 26. Section 10.40.010 of the San Luis Obispo Municipal Code, entitled Timed parking, is hereby amended to read as follows: 10.40.010 Timed parking. When authorized signs, parking meters or curb markings have been determined by the Public Works Director or their designee(s) city traffic engineer to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours established by Section 10.52.030, for a period of time longer than designated time posted by sign, parking meter or curb marking. Green curb markings shall mean no standing or parking of time longer than ten minutes up to one hour. All other time designations shall be from one hour up to ten hours. Vehicle must move a minimum of one hundred fifty meters once designated time at occupied space has elapsed. 9.b Packet Pg. 200 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 9 O ______ SECTION 27. Subsection C of Section 10.40.040 of the San Luis Obispo Municipal Code, entitled Parking parallel on one way street, is hereby amended to read as follows: C. The Public Works Director or their designee(s) city traffic engineer is authorized to determine when standing or parking shall be prohibited upon the left-hand side of any one-way roadway or a highway having two or more separate roadways and shall erect signs giving notice thereof. SECTION 28. Subsection A of Section 10.40.060 of the San Luis Obispo Municipal Code, entitled Parking space markings, is hereby amended to read as follows: 10.40.060 Parking space markings. A. The Public Works Director or their designee(s) city traffic engineer is authorized to install and maintain parking space markings to indicate parking spaces adjacent to curbings on city streets and in municipal parking lots where authorized parking is permitted. SECTION 29. Section 10.40.070 of the San Luis Obispo Municipal Code, entitled No stopping zones, is hereby amended to read as follows: 10.40.070 No stopping zones. A. The Public Works Director or their designee(s) city traffic engineer shall designate established no stopping zones by placing and maintaining appropriate signs indicating that stopping of vehicles is prohibited and indicating the hours and days when stopping is prohibited. B. During the hours and on the days designated on the signs, it is unlawful for the operator of any vehicle to stop said vehicle on any of the streets or parts of streets established by the Public Works Director or their designee(s) city traffic engineer as no stopping zones. SECTION 30. Subsection A of Section 10.44.010 of the San Luis Obispo Municipal Code, entitled Loading zones – Marking - Authority, is hereby amended to read as follows: 10.44.010 Loading zones—Marking—Authority. A. The Public Works Director or their designee(s) city traffic engineer is authorized to determine and to mark loading zones and passenger loading zones as follows: 1. At any place in the central traffic district or any business district; 2. Elsewhere in front of the entrance to any place of business or in front of any hall or place used for the purpose of public assembly. 9.b Packet Pg. 201 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 10 O ______ SECTION 31. Section 10.44.020 of the San Luis Obispo Municipal Code, entitled Curb marking – Meanings – Authority to place, is hereby amended to read as follows: 10.44.020 Curb markings—Meanings—Authority to place. The Public Works Director or their designee(s) city traffic engineer is authorized, subject to the provisions and limitations of this chapter, to place, and when required herein shall place, the following curb markings to indicate parking or standing regulations, and the curb markings shall have the meanings as set forth in this section. A. “Red” means no stopping, standing or parking at any time except as permitted by the Vehicle Code, and except that a bus may stop in a red zone marked or signed as a bus zone. B. “Yellow” means no stopping, standing or parking at any time between seven a.m. and six p.m. every Monday to Saturday, and between one p.m. and six p.m. every Sunday, for any purpose other than the commercial loading or unloading of materials by a commercially registered and licensed vehicle or a professionally signed passenger vehicle that displays an authorized commercial loading zone permit. The commercial loading zone permit requirements and fee shall be established by resolution. C. “White” means no stopping, standing or parking for any purpose other than loading or unloading of passengers, or for the purpose of depositing mail in an adjacent mailbox, which shall be from three minutes to a maximum of ten minutes, and such restrictions shall apply between seven a.m. and six p.m. every Monday to Saturday, and between one p.m. and six p.m. every Sunday, and except as follows: 1. When such zone is in front of a hotel or in front of a mailbox the restrictions shall apply at all times. 2. When such zone is in front of a theater the restrictions shall apply at all times. D. When the Public Works Director or their designee(s) city traffic engineer as authorized under this chapter has caused curb markings to be placed, no person shall stop, stand or park a vehicle adjacent to any such legible curb markings in violation of any of the provisions of this section. SECTION 32. Section 10.44.060 of the San Luis Obispo Municipal Code, entitled Bus zoned – Establishment - Authority, is hereby amended to read as follows: 10.44.060 Bus zoned—Establishment—Authority. A. The Public Works Director or their designee(s) city traffic engineer is authorized to establish bus zones for the loading and unloading of buses and common carriers or passengers, and to determine the location thereof. B. Bus zones shall normally be established on the far side of an intersection. 9.b Packet Pg. 202 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 11 O ______ SECTION 33. Subsection A of Section 10.44.070 of the San Luis Obispo Municipal Code, entitled Handicapped parking, is hereby amended to read as follows: A. The Public Works Director or their designee(s) city traffic engineer shall designate special “blue curb” parking spaces for the purpose of providing on-street parking for exclusive use by disabled persons. SECTION 34. Subsection B of Section 10.44.070 of the San Luis Obispo Municipal Code, entitled Handicapped parking, is hereby amended to read as follows: B. The Public Works Director or their designee(s) city traffic engineer shall designate parking stalls or spaces in publicly owned, leased or controlled off-street parking facilities for exclusive use by disabled persons. SECTION 35. Subsection A of Section 10.48.040 of the San Luis Obispo Municipal Code, entitled Truck routes, is hereby amended to read as follows: A. Whenever the city designates and describes any street or portion thereof as a street, the use of which is permitted by any vehicle exceeding a maximum gross weight limit of five tons, the Public Works Director or their designee(s) city traffic engineer is authorized to designate such street or streets by appropriate signs as “truck routes” for the movement of vehicles exceeding a maximum gross weight limit of five tons. SECTION 36. Subsection A of Section 10.48.050 of the San Luis Obispo Municipal Code, entitled Commercial vehicles prohibited from using certain streets – Sign posting, is hereby amended to read as follows: A. Whenever any resolution of the city designates and describes any street or portion thereof as a street, the use of which is prohibited by any commercial vehicle, the Public Works Director or their designee(s) city traffic engineer shall erect and maintain appropriate signs on those streets affected by such designation. SECTION 37. Subsection A of Section 10.52.020 of the San Luis Obispo Municipal Code, entitled Installation, is hereby amended to read as follows: A. The Public Works Director or their designee(s) city traffic engineer may cause parking meters to be installed and maintained in all parking meter zones. SECTION 38. Section 10.52.110 of the San Luis Obispo Municipal Code, entitled Motorcycle spaces, is hereby amended to read as follows: 10.52.110 Motorcycle spaces. The Public Works Director or their designee(s) city traffic engineer may designate and cause to be installed and maintained parking spaces for the exclusive use of motorcycles, motorized bicycles and motor driven cycles. Parking meter rates for these spaces shall be one-half the rate established by Section 10.52.010(B). 9.b Packet Pg. 203 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 12 O ______ SECTION 39. Section 10.56.010 of the San Luis Obispo Municipal Code, entitled Speed limit designation, is hereby amended to read as follows: 10.56.010 Speed limit designation. Prima facie speed limits shall be determined by the Public Works Director or their designee(s) city traffic engineer pursuant to provisions set forth in the California Vehicle Code. A speed limit established pursuant to this section shall be effective when appropriate signs giving notice thereof are erected upon a street. SECTION 40. Section 10.56.020 of the San Luis Obispo Municipal Code, entitled Regulation of speed by traffic signals – Sign posting, is hereby amended to read as follows: 10.56.020 Regulation of speed by traffic signals—Sign posting. The Public Works Director or their designee(s) city traffic engineer is authorized to regulate the timing of traffic signals so as to permit the movement of traffic in an orderly and safe manner at speeds slightly at variance from the speeds otherwise applicable within the district or at intersections, and may erect appropriate signs giving notice thereof. SECTION 41. Section 10.60.020 of the San Luis Obispo Municipal Code, entitled Intersections, is hereby amended to read as follows: 10.60.020 Intersections. At intersections not controlled by a stop sign or traffic signal, no plant, structure, or other solid object over three feet high (above adjacent curb) which would obstruct visibility may be located within the area indicated in Figure 8 as shown in Section 17.16.020(E)(2)(f) of the zoning regulations. At controlled intersections, the Public Works Director or their designee(s) city engineer may determine visibility requirements for proper sight distance. SECTION 42. Section 10.80.020 of the San Luis Obispo Municipal Code, entitled Permit - Required, is hereby amended to read as follows: 10.80.020 Permit—Required. No vehicle or structure which exceeds the size and/or weight limitations established by the California Vehicle Code shall be allowed on city streets without first obtaining a permit issued by the Public Works Director or their designee(s) city engineer and complying with the conditions set forth by the permit. SECTION 43. Subsection A of Section 10.80.050 of the San Luis Obispo Municipal Code, entitled Permit – Denial – Restrictions – Permit holders responsibilities, is hereby amended to read as follows: 10.80.050 Permit—Denial—Restrictions—Permit holders responsibilities. A. The Public Works Director or their designee(s) city engineer may deny the issuance of a permit or set special requirements based upon public safety and the limitation of the street system to handle the proposed vehicle or structure. 9.b Packet Pg. 204 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 13 O ______ SECTION 44. Subsection D of Section 10.80.050 of the San Luis Obispo Municipal Code, entitled Permit – Denial – Restrictions – Permit holders responsibilities, is hereby amended to read as follows: D. Upon completion of a move, and as directed by the Public Works Director or their designee(s) city engineer or the police department, the permit holder shall clear the right- of-way of materials left by his or her operation and restore it to the condition existing prior to the move. SECTION 45. Section 10.80.070 of the San Luis Obispo Municipal Code, entitled Liability insurance required, is hereby amended to read as follows: 10.80.070 Liability insurance required. The permit holder is responsible for personal injury or private property damage which may occur through any act or omission when acting under a permit; and in the event any claim is made against the city or any department, officer, agent or employee thereo f, by reason of, or in connection with, any such act or omission, the permit holder shall defend, indemnify and hold each of them harmless from such claim. The permit shall not be effective for any purpose unless and until the permit holder files with the Public Works Director or their designee(s) city engineer an insurance certificate and an “additional insured endorsement” to the satisfaction of the city attorney. The insurance certificate supplied shall reflect the endorsement naming the city, its officers, agents and employees, as additional insured, and indicate that the policy will not be canceled or the coverage reduced without ten days’ advance written notice to the city. The amount of coverage shall not be less than that required by the California Vehicle Code for vehicles weighing in excess of seven thousand pounds unladen weight per Section 16600.5 or such other amount considered appropriate for unusually large or heavy loads which pose a substantial risk to public facilities, as determined by the Public Works Director or their designee(s) city engineer and city attorney. SECTION 46. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 47. A summary of this ordinance, approved by the City Attorney, together with the names of the Council members voting for and against it, shall be published at least five days prior to its final passage, in the Tribune, a newspaper published and circulated in this City. This ordinance will go into effect at the expiration of thirty (30) da ys after its final passage. INTRODUCED on the 5th day of January 2016, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ______ day of _______ 2016, on the following roll call vote: 9.b Packet Pg. 205 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Ordinance No. 1628 (2016 Series) Page 14 O ______ AYES: NOES: ABSENT: Mayor Jan Marx ATTEST: Jon Ansolabehere Interim 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 ______________, _________. ______________________________ Jon Ansolabehere Interim City Clerk 9.b Packet Pg. 206 Attachment: b - Ordinance (1237 : Municipal Code Title 10: Vehicle & Traffic Amendments) Page intentionally left blank. Meeting Date: 2/16/2016 FROM: Monica Irons, Human Resources Director Prepared By: Amy Fletcher, Human Resources Administrative Assistant SUBJECT: AUTHORIZE THE CITY MANAGER TO APPROVE CONTINUED CONSULTANT SERVICES WITH LIEBERT CASSIDY WHITMORE RECOMMENDATION Authorize the City Manager to approve up to $100,000 in continued consultant services with Liebert Cassidy Whitmore (LCW) in fiscal year 2015-16 as necessary to provide labor relations and specialized employment services. DISCUSSION In August 2005 the City Council authorized distribution of a request for proposals for labor relations services, Specification Number 90597 and authorized the City Manager to award the initial contract. In November 2005, the City Manager approved a contract with LCW to provide labor relations and negotiations support to the City. Since that time the contract has been renewed periodically when staff engages LCW in labor negotiations support and reflects the firm’s current rates for service. LCW is also on the City Attorney’s on-call attorney list for the categories of Labor Employment, Pension and Benefits Programs as a result of a Request for Qualifications issued by the City Attorney’s office in 2014. LCW has provided excellent support in the critical area of labor relations and negotiations during the past several years. Having continuity from one labor negotiation to the next with the City’s four represented labor groups has proven to be valuable. In 2014, LCW helped the City transition to a more proactive labor relations approach by assisting in Council’s development of Labor Relations Objectives grounded in financial responsibility. LCW provided input and counsel regarding legislative changes in impasse procedures as well as bargaining and implementation of lower, second tier retirement formulas. Further, LCW brings a broad perspective as attorneys with their firm negotiate labor agreements throughout the State of California. The City’s purchasing policy along with authority provided in the initial authorization for RFP, provides for the City Manager to approve consultant services with LCW up to $50,000. The City is currently in negotiations with two of its labor groups and anticipates starting negotiations with a third labor group in spring of 2016. As a result staff is requesting contracting authority up to a total of $100,000 to conclude negotiations during fiscal year 2015-16. While it is difficult to estimate how many negotiation meetings and consultations may be necessary to conclude negotiations, receiving this authorization from Council allows staff to transfer and encumber the funds in the event additional meetings are necessary without causing undue delay or disruption to 10 Packet Pg. 207 the negotiations. FISCAL IMPACT The Human Resources Administration budget includes $45,000 in funding for labor negotiations support and staff estimates expenditures of $35,000 through December 31, 2015. The additional funding is available within existing General Fund budgets. As a result there is no fiscal impact to this action. ALTERNATIVES Do not authorize the City Manager to approve expenditures to LCW up to $100,000 during fiscal year 2015-16. This alternative is not recommended, as Council would need to authorize any expenditure above $50,000 in fiscal year 2015-16 which could delay labor negotiations. 10 Packet Pg. 208 Meeting Date: 2/16/2016 FROM: Carrie Mattingly, Director of Utilities Prepared By: Aaron Floyd, Deputy Director, Water SUBJECT: WELL SITE RELINQUISHMENT AT 1460 CALLE JOAQUIN RECOMMENDATION Approve and authorize the Mayor to execute the Quit Claim Deed and Indemnification Agreement Affecting Real Property and Bill of Sale for the well at 1460 Calle Joaquin. DISCUSSION At its January 19, 2016 meeting, the City Council continued to a date uncertain staff’s request for the City Council to relinquish any rights it might have to a well located at 1460 Calle Joaquin, San Luis Obispo (the “Property”) to the overlying property owner, ARH Quiky Investments, LLC (“Quiky”). After this action, the City received a letter from Quiky’s attorney threatening litigation. Background: The well was installed in 1989 when the City was actively pursuing groundwater development to supplement its surface water supply. Groundwater contamination (PCE and nitrates) forced the shutdown of the well in June 1993. The regulatory status of the well was changed to “inactive” in July 1995. Although it has been out of service for many years, and is currently separated by a closed valve, the water line running from the well remains connected to the City’s water distribution system, a potential water quality liability. The City’s right to the well and related infrastructure: Recorded Rights In July 2014, Quiky’s representatives approached Utilities staff to discuss the ownership of the well. A June 12, 2014 title report of the Property provided by Quiky’s engineering firm confirmed that there is no recorded easement or other right of access for the well. The City’s independent review of title and property history also did not reveal any easement or other right, recorded or unrecorded, for the well. Potential Prescriptive Rights Without an easement or similar enforceable right, the City has no recorded legal right to operate, maintain or remove the well. The only other alternative for the City to seek rights regarding the well would be for the City to claim a prescriptive easement to the well itself. In order to assert such a right, the City would need to file a lawsuit for declarative relief. The extent of the City’s prescriptive rights that potentially could be perfected via a lawsuit are strictly constrained based 11 Packet Pg. 209 on historic use. Because the City has not used the well at all for many years, the City’s right to use and pump the well under such a theory would be severely limited. Without either an express easement or an adjudicated prescriptive easement in place, the City has no established legal right to access or use the well without the permission of the property owner. Impacts to water rights: Even assuming the City has a continuing ownership interest in the well infrastructure located on the Property, transferring the well to the Property owner has no effect on the City’s or Quiky’s water rights. A property owner has the right to groundwater for the reasonable beneficial use of the overlying property. This means that Quiky has the right to use water from the San Luis Obispo Groundwater Basin for the reasonable beneficial use on the Property, subject to all regulatory requirements. Staff has not been able to locate any agreement that would have given the City any right to access or use the groundwater underlying the Property via the existing well site. The transfer of the well to the Property owner does not confer or otherwise modify any of the parties’ otherwise existing water rights. In addition, the City does not prohibit private property owners from drilling wells or utilizing well water for non-potable uses, provided the water extracted from the well is used only on the property on which the well is located. The January 16, 2016 letter from Central Coast Grown notes concerns that the City transferring the well to Quiky “…is jeopardizing the water table serving the Calle Joaquin Agricultural Preserve, which includes City Farm.” Water use for the proposed car wash is estimated to be approximately 16 units of water per month or 0.44 acre feet per year (afy). This amount is about .04% of the estimated 1,000 afy of water used for irrigated agriculture on lands in and near the City. For reference, the City was withdrawing about 1,770 afy in addition to all other uses, including irrigated agriculture, when the subsidence occurred that affected the Bear Valley Shopping Center. Based on this estimate, staff does not believe the proposed use presents a threat to the basin or would otherwise unreasonably interfere with the City’s (or City affiliated party) beneficial use of the groundwater in the basin. The City’s need for this well: The City relies on surface water from the Whale Rock, Nacimiento and Salinas Reservoirs for its potable water supply and the City is currently in the process of obtaining additional allocation from Nacimiento to supplement its reserve supplies. The City does not use or have any need for this well in the future. If the City were to utilize groundwater to supplement its water supply, significant treatment infrastructure would be needed, which would necessitate a more localized well system. In other words, even if the City needed groundwater, it would need to build a new treatment system which would use different infrastructure – including different wells to access the groundwater in the basin. Those new wells would need to be located on City property or, if needed, on private property where the City has obtained a legal right to establish such a use. Even if the City could establish a legal right to the current well location, the location of this well, between the freeway and a busy road, including the need to cross multiple properties, would not make it an ideal location to access the groundwater basin. In the context of the legal and practical issues referenced above, staff continues to believe relinquishing the well to the overlying property owner is beneficial in that: the City would eliminate the need to maintain or repair this infrastructure; disconnection from the City’s system 11 Packet Pg. 210 eliminates potential water quality liability; and the costs of disconnection, approximately $1250 - $3125, would be paid for entirely by the Property owner. Recycled water use: Recycled water distribution runs nearby the property and the washing of cars is on the list of approved uses. The property owner has recently submitted plans for recycled water use on site, though only for landscape irrigation at this point. The property owner would have the option of expanding the use of recycled water in the future to include the car wash. ENVIRONMENTAL REVIEW Transfer of the well and infrastructure is not a “project” under the California Environmental Quality Act, because the action does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378. Further, the action does not involve the issuance of a lease, permit, license, certificate or other entitlement or any of the other actions described in Section 15378(a)(1)-(3). The Quiky car wash project was separately reviewed and approved by the Planning Commission on November 12, 2014. That project was determined to be categorically exempt from environmental review pursuant to CEQA Guidelines section 15301. FISCAL IMPACT No resources had been identified for the abandonment of the existing well. The disconnection of the well from the City’s water distribution system would be reducing a potential water quality liability. ALTERNATIVES 1. The City Council could choose to refuse to transfer the well and infrastructure to the overlying property owner. This is not recommended because the City has no right to access or operate the well. Attachments: a - Indemnification Agreement Affecting Real Property and Bill of Sale b - Quit Claim Deed 11 Packet Pg. 211 1 INDEMNIFICATION AGREEMENT AFFECTING REAL PROPERTY AND BILL OF SALE (Quiky Car Wash Well) FOR VALUABLE CONSIDERATION RECEIVED, BE IT KNOWN that, upon recordation of the executed Quitclaim Deed in the form attached hereto as Exhibit “1”, the City of San Luis Obispo, a chartered municipal corporation (“City”) hereby sells, transfers, conveys and assigns forever to ARH Quiky Investments, LLC, a California limited liability company (“Quiky”) and Quiky’s transferees, grantees, assigns and successors in interest, all of City’s right, title and interest in and to the underground waterline, building, vault, concrete pad and well and any other related equipment, improvements or personal property attached thereto situated in the location depicted in Exhibit B to the Quitclaim Deed (“Transferred Property”). Quiky acknowledges and agrees that City makes no representation or warranty whatsoever, express or implied, as to the quality of water underlying the property, the sufficiency of the well or the condition of the Transferred Property and Quiky accepts the Transferred Property on an “AS-IS, WHERE IS, WITH ALL FAULTS” basis. Quiky, and its transferees, grantees, assigns and successors in interest, agree to indemnify, defend and hold City harmless from and against, any and all losses, damages, costs and expenses (including, without limitation, reasonable legal fees and costs) arising out of or incurred with respect to any claims, demands, causes of action of any nature, any expense incident to defense, for injury to or death of persons or loss of or damage to property, including any alleged damages or liability resulting from the pumping and drawing of water from the above-described well, occurring subsequent to the execution of this Bill of Sale resulting from the use, operation or maintenance by Quiky, or its officers, agents, employees, transferees, grantees and successors in interest of the Transferred Property. Quiky acknowledges and agrees that its obligation to indemnify, defend and hold harmless City as set forth herein is a covenant that shall run with the land described in said Quitclaim Deed and shall be binding on Quiky’s transferees, grantees, assigns and successors in interest. Quiky and City agree that upon recordation of the Quitclaim Deed a Memorandum of Agreement substantially in the form attached hereto as Exhibit “2” shall be recorded in the Official Records of San Luis Obispo County. Quiky shall pay for all recording fees, if any. 11.a Packet Pg. 212 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) 2 Signed January _____, 2015 City of San Luis Obispo By: Jan Marx, Mayor Attest: ____ Jon Ansolabehere, Interim City Clerk Approved as to Form: _________________________________ J. Christine Dietrick, City Attorney ARH Quiky Investments, LLC By: Its: 11.a Packet Pg. 213 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) 3 EXHIBIT “1” Form Quitclaim Deed with Attachments RECORDING REQUESTED BY: and WHEN RECORDED MAIL TO: ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 DOCUMENTARY TRANSFER $_____________________ SPACE ABOVE THIS LINE FOR RECORDER'S USE ( ) Computed on the consideration or value of property conveyed; OR ( ) Computed on the consideration or value less liens or encumbrances *________________________________ _______________ ( ) remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name - 053-151-036 QUITCLAIM DEED FOR A VALUABLE CONSIDERATION City of San Luis Obispo, a chartered municipal corporation, hereby QUITCLAIMS, GRANTS, and CONVEYS to ARH Quiky Investments, LLC, a California limited liability company, Any and all rights, title and interests of record or arising by prescription, in and to the underground waterline, building, vault, concrete pad and well and any other related equipment, improvements or personal property attached thereto, including the right to draw water from the above-described well, situated in the location described in Exhibit “A” and depicted in Exhibit “B” attached hereto. Dated: __________________, 20____ City of San Luis Obispo, a municipal corporation, By: _________________________________ MAIL TAX STATEMENTS TO: Same address as shown above 11.a Packet Pg. 214 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) 4 Exhibit A LOT 8 OF TRACT 347, FREEWAY CENTER, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, AS PER MAP RECORDED MARCH 3, 1967 IN BOOK 7, PAGE 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. TOGETHER WITH THAT PORTION OF LOT 66 OF THE RANCHO CANADA DE LOS OSOS AND LA LAGUNA THAT WOULD PASS BY OPERATION OF LAW AS VACATED BY RESOLUTION RECORDED JUNE 4, 1986 AS INSTRUMENT NO. 86-32837 IN BOOK 2840, PAGE 740 OF OFFICIAL RECORDS. Exhibit B 11.a Packet Pg. 215 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) 5 Exhibit 2 Memorandum of Agreement RECORDING REQUESTED BY: and WHEN RECORDED MAIL TO: ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 053-151-036 MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT (this “Memorandum”) is made and entered into this day of __________, 2016 by and between the City of San Luis Obispo, (“City”) and ARH Quiky Investments, LLC (“Quiky”). Notice is hereby given that the City and Quiky entered into an Indemnification Agreement Affecting Real Property and Bill of Sale dated _________, 2015 (“Agreement”), which is a covenant that runs with the land described herein below and is binding on Quiky’s transferees, grantees, assigns and successors in interest. Real Property: LOT 8 OF TRACT 347, FREEWAY CENTER, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, AS PER MAP RECORDED MARCH 3, 1967 IN BOOK 7, PAGE 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. TOGETHER WITH THAT PORTION OF LOT 66 OF THE RANCHO CANADA DE LOS OSOS AND LA LAGUNA THAT WOULD PASS BY OPERATION OF LAW AS VACATED BY RESOLUTION RECORDED JUNE 4, 1986 AS INSTRUMENT NO. 86-32837 IN BOOK 2840, PAGE 740 OF OFFICIAL RECORDS. The terms and conditions of the Agreement is incorporated herein by this reference. Should any party require information concerning said Agreement, they should contact City or Quiky at the following addresses: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 11.a Packet Pg. 216 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) 6 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the day and year first above written. City of San Luis Obispo By: Jan Marx, Mayor Attest: ____ Jon Ansolabehere, Interim City Clerk Approved as to Form: _________________________________ J. Christine Dietrick, City Attorney ARH Quiky Investments, LLC By: Its: 11.a Packet Pg. 217 Attachment: a - Indemnification Agreement Affecting Real Property and Bill of Sale (1261 : Well Site Relinquishment) RECORDING REQUESTED BY: and WHEN RECORDED MAIL TO: ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 DOCUMENTARY TRANSFER $_____________________ SPACE ABOVE THIS LINE FOR RECORDER'S USE ( ) Computed on the consideration or value of property conveyed; OR ( ) Computed on the consideration or value less liens or encumbrances *_______________________________________________ ( ) remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name - 053-151-036 QUITCLAIM DEED FOR A VALUABLE CONSIDERATION City of San Luis Obispo, a chartered municipal corporation, hereby QUITCLAIMS, GRANTS, and CONVEYS to ARH Quiky Investments, LLC, a California limited liability company, Any and all rights, title and interests of record or arising by prescription, in and to the underground waterline, building, vault, concrete pad and well and any other related equipment, improvements or personal property attached thereto, including the right to draw water from the above-described well, situated in the location described in Exhibit “A” and depicted in Exhibit “B” attached hereto. Dated: __________________, 20____ City of San Luis Obispo, a municipal corporation, By: _________________________________ __________________________________ MAIL TAX STATEMENTS TO: Same address as shown above 11.b Packet Pg. 218 Attachment: b - Quit Claim Deed (1261 : Well Site Relinquishment) Exhibit A LOT 8 OF TRACT 347, FREEWAY CENTER, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, AS PER MAP RECORDED MARCH 3, 1967 IN BOOK 7, PAGE 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. TOGETHER WITH THAT PORTION OF LOT 66 OF THE RANCHO CANADA DE LOS OSOS AND LA LAGUNA THAT WOULD PASS BY OPERATION OF LAW AS VACATED BY RESOLUTION RECORDED JUNE 4, 1986 AS INSTRUMENT NO. 86-32837 IN BOOK 2840, PAGE 740 OF OFFICIAL RECORDS. 11.b Packet Pg. 219 Attachment: b - Quit Claim Deed (1261 : Well Site Relinquishment) Page intentionally left blank. Meeting Date: 2/16/2016 FROM: Michael Codron, Community Development Director Prepared By: Rachel Cohen, Associate Planner SUBJECT: CONCEPTUAL REVIEW AND PRELIMINARY FEEDBACK FOR A PLANNED DEVELOPMENT TO ALLOW BUILDING HEIGHTS UP TO 75 FEET FOR A MIXED-USE PROJECT THAT INCLUDES AN 80-ROOM HOTEL, 26,000 SQUARE FEET OF RESIDENTIAL UNITS, 20,000 SQUARE FEET OF RETAIL/RESTAURANT SPACE, 33,000 SQUARE FEET OF OFFICE SPACE AND A 45-FOOT TALL PARKING GARAGE AND TRANSIT CENTER. RECOMMENDATION Receive a presentation regarding the proposed project and provide input and guidance to questions posed by the applicant. REPORT-IN-BRIEF The applicant has submitted plans for conceptual review of a project located at 1101 Monterey and 1144 and 1166 Higuera Streets. The proposed project includes the construction of two new, 75 feet tall, mixed-use structures with approximately 20,000 square feet of retail/commercial space, 45,000 square feet of hotel space (80 rooms), 26,000 square feet of residential space, 33,000 square feet of office space and a 45-foot tall parking garage (4 to 5 decks) and transit center. The applicant is proposing a Planned Development for the site to allow for more flexible development parameters such as increased building height, which the Zoning Regulations enables for projects with “significantly higher design quality.” DISCUSSION The project proposes the construction of mixed-use structures (hotel, office and housing) and a combined parking garage/joint RTA and SLO City Transit Center with a Planned Development Overlay. The applicant has requested a conceptual review by the City Council in order to receive feedback and early guidance regarding the project prior to Figure 1: Site location 1 2 3 12 Packet Pg. 220 completing the environmental review and proceeding with detailed design plans. Project Information 1. Site Information/Setting The project site is zoned Retail Commercial (C-R) and consists of three lots within the downtown core (Attachment A, Vicinity Map and Attachment B, General Plan Downtown Planning Area and Core Map). The sites are developed with a gas station (#1) (now demolished), the SGS Automotive services (#2), and a commercial space with a large surface parking lot (#3) (refer to Figure 1). The project site is bounded by Monterey Street to the north and Higuera Street to the south, Santa Rosa Street to the west and Toro Street to the east. The proposed site is adjacent to varying building heights including the Mortgage House (1.5 stories), County Government Center (4 stories, ~60 feet), San Luis Diagnostic Center (2 stories), and Bank of America (1.5 stories). Table 1: Site Information Site Size 71,344 s.f. Present Use & Development Gas Station (demolished), Car Dealership, Commercial Space Topography Flat Access Monterey Street, Higuera Street, Santa Rosa Street and Toro Street Surrounding Use/Zoning North: C-R (Retail Commercial: San Luis Diagnostic Center, Parking Lots, Training Center, and The Mortgage House) East: C-R (Retail Commercial: Petra Restaurant) South: C-R & O (Retail Commercial & Office: Bank of America ) East: C-R (Retail Commercial: SGS Automotive services, Apothecary Tattoo) 2. Project Description A summary of significant project features includes the following (Attachment C, Conceptual Project Plans): 1. A 75-foot (seven-story) hotel with: a. 45,000 square feet (80 rooms) of hotel; and b. Approximately 10,000 square feet of retail/restaurant space on the first floor. 2. A 75-foot (five-story) structure that includes: a. 33,000 square feet of office space; b. 26,000 square feet of residential space; and c. Approximately 10,000 square feet of retail/restaurant space on the bottom floor. 3. A private/public mid-block plaza that includes space for outdoor dining, benches, planters and other amenities. 4. A 45-foot (4 to 5 deck) parking garage and transit center. 12 Packet Pg. 221 5. A Planned Development (PD) to allow for more flexible development parameters such as a maximum building height of 75 feet, design, and public amenities. Applicant Questions The applicant has proposed the following questions for City Council discussion: 1. Is the proposed mix of uses consistent with the vision for this portion of Monterey Street to be a continuation of the downtown core with an intensified mixed-use development rather than more auto-centric uses? 2. Does the Council support the concept of a parking structure and transit center at this location? 3. Provided that the applicant demonstrates full compliance with all of the required information needed for buildings up to 75 feet included in Zoning Regulations Section 17.42.020 C. (height regulations for the C-D zone), could building height of 75 feet be supported? 4. What other features or details would the Council like to see included in the plaza design? 5. The project proposes to eliminate the multiple driveways on the site and only include a main hotel entry driveway off of Monterey Street (as well as entrances into the parking garage). Does the Council have comments and/or feedback on the proposed location of the main hotel driveway entry? Advisory Body Feedback On December 7, 2016 the Architectural Review Board (ARC) reviewed and discussed the proposed project and provided the following comments:  The 75-foot height request presents compatibility concerns with the surrounding neighborhood given the site context. A height of 45 to 60 feet may be acceptable pending further detail and 3D views.  Provide additional 3D views/massing modeling in order to better understand the relationship of the project’s massing with the neighborhood. The view of the project from the Monterey Street side is important.  Consider alternate locations for the proposed plaza in order to address noise concerns from Santa Rosa. Location along Monterey Street or Higuera Street may be more appropriate (while maintaining solar access to the plaza).  More detailed information about the parking structure is needed. The parking structure should incorporate storefronts facing the street.  Generally the architectural style is headed in the right direction. On January 27, 2016 the Planning Commission (PC) reviewed and discussed the proposed project and provided the following comments:  The mix of uses appears to be appropriate for the site, especially the inclusion of affordable and workforce housing.  This location is appropriate for the transit center and some commissioners shared that the 12 Packet Pg. 222 applicant may consider locating the transit center closer to the intersection of Higuera and Santa Rosa Streets.  The site is an appropriate location for a parking garage. Several Commissioners questioned if all the proposed parking spaces (approximately 600) were needed at this location and suggested the applicant consider reducing the total number of spaces.  A taller building height (taller than 45 feet) is supportable at the proposed location; however the applicant should consider spreading the height of the buildings across the site.  The applicant should consider activating all sides of the project and locating the plaza at the corner of Santa Rosa and Monterey Streets.  The proposed circulation appears to be appropriate; however more information will need to be provided. Project Analysis The Zoning Regulations and General Plan are the pertinent documents to conduct preliminary review of the proposed project. Key Council discussion items are identified below. 1. Mix of Uses The applicant is proposing a mixed-use project with two structures that include: a hotel, residential units, office space, and retail/commercial space. The Retail Commercial (C-R) zone allows all of these uses (Table 9, Zoning Regulations). The Land Use Element (LUE) specifies a variety of policies related to types of uses within the Downtown Planning Area and the Downtown Core including Tourist Commercial Uses, professional and governmental services, downtown residential, and entertainment and cultural facilities (LUE 3.6, 3.8.5 and Chapter 4). As proposed, the project uses appear to be consistent with the LUE and the Zoning Regulations The City Council should discuss if the proposed location and mix of uses are appropriate at the proposed location in regards to the City’s General Plan and Zoning Regulations. 2. Parking Garage and Transit Center The applicant is proposing to construct a 4-5 level parking garage that would also be a part of a new regional transit center (Attachment C, Project Plans, Sheet A3). These uses are allowed within the C-R zone with a Use Permit from the Planning Commission. The parking garage and joint RTA and SLO City transit center are consistent with the location proposed within the current Downtown Concept Plan and with the LUE and the Circulation Element (CE) (LU E policies 8.2.2. and CE 3.2.81). The applicant is proposing a private/public partnership for the parking garage. In this arrangement, the developer would move forward on the construction of the garage with an 1 LUE 8.2.2. Upper Monterey: (a) The City shall investigate adding the Upper Monterey area to the Downtown Parking District, thereby allowing in-lieu payment towards common parking facilities. (b) The City shall integrate a new Downtown Transit Center in the Upper Monterey area and provide enhanced connectivi ty to the center from the Upper Monterey area. CE 3.2.8. Regional Transit Center: The City shall work with other agencies to develop a regional transit center downtown. 12 Packet Pg. 223 agreement that the City would eventually purchase or pay back the developer for a portion of the construction costs. The garage would provide spaces needed for the new mixed-use project and the additional spaces would then be available for the City to maintain and manage. Additional public spaces in this location could provide an opportunity for the City to consider creating a new parking district or expanding the existing Downtown Core parking district. The City Council should discuss if the proposed location of the parking garage is generally appropriate in the context of the City’s General Plan and Zoning Regulations. Designs for the parking garage and joint RTA and SLO City regional transit center are still being developed. However, the applicant has met with SLOCOG, RTA and SLO Transit and determined the proposed design on Sheet A3 (Attachment C, Conceptual Project Plans) with office space within the parking garage and a parallel bus parked design is the most feasible and supportable by all agencies. The City Council should discuss if the proposed location of the Transit Center is generally appropriate and what additional information the City Council would like to see with future submittals. City Council Direction: If determined that the parking garage and/or the transit center is appropriate for this location, the City Council should provide specific recommendation to direct staff to pursue information necessary to assess a partnership with the developer for the garage and/or transit center. 3. Planned Development: Building Height and Amenities The applicant is proposing a maximum building height of 75 feet where normally the maximum height allowed within the C-R zone is 45 feet. The applicant is proposing to process a zoning amendment to include a Planned Development (PD) overlay zone over the subject site. With a PD overlay, the uses stay the same as allowed in the underlying zoning but provides flexibility to the property’s development standards, such as height (Section 17.50.020.E.). The applicant is proposing to base the PD on policy objectives that are outlined in the LUE for structures that are 50 to 75-foot tall within the Downtown (LUE Chapter 4, Section 4.20.4). The proposed PD would also incorporate additional requirements that are consistent with buildings over 50 feet within the C-D zone2. The applicant is proposing to include the following policy objectives (amenities): 1. Provide affordable and workforce housing; and 2. A pedestrian amenity of a private/public mid-block plaza along Santa Rosa. 2 Zoning Regulations Section 17.42.020: The applicant has proposed to include the following as part of the PD [based upon requirements for a building taller than 50 feet within the C -D zone]: 1. A minimum residential density unit value of 24 units per acre with an average floor area of 1,200 square feet or less; 2. Meet Title 24 California Energy Efficiency Requirements by a minimum of 15%; or achieve at least a Silver rating on the LEED-CS or NC checklist; or is designed to achieve a minimum value of 50 points on the SLO Green Build Multi-Family GreenPoint Checklist; 3. No more than 33% of the site area at the storefront level will be used for private parking facilities; and 4. Lots conform to the minimum size and dimension requirements provided in the Subdivision Regulations. 12 Packet Pg. 224 During the Architectural Review Commission and Planning Commission hearings a substantial amount of public testimony was provided regarding building height. Because this is a conceptual review, staff has not completed a General Plan policy analysis, however, the Council may benefit from reviewing the policies and program related to building height from Chapter Four of the LUE. These policies were first introduced to the General Plan when the Downtown Building Height Ordinance was approved in 2007. These policies were unchanged through the recent LUE update. In addition, staff has provided the policies relative to LUE Focus Area 2, Upper Monterey Area, for ease of reference (Attachment D). The City Council should discuss if the proposed development standards and policy objectives are generally acceptable for the proposed structure height of 75 feet. 4. Plaza Design As mentioned above in Section 3 (Planned Development: Building Height), the proposed project includes a private/public plaza that is currently located along Santa Rosa Street. The project applicant has indicated that the plaza would include space for window shopping, outdoor dining, benches, and planters. The City Council should discuss if the proposed location of the plaza is appropriate and if other amenities should be included as part of the design. 5. Hotel Driveway Location The proposal includes the location of the main hotel entry driveway along Monterey Street. The final submittal of the project would require a traffic impact study to analyze the project’s proposed interior circulation and impact of the overall project on the surrounding neighborhood circulation. The applicant has requested City Council discuss if the proposed location of the main hotel driveway entry appears generally appropriate for the project. 6. Discussion Items Staff recommends the City Council discuss and provide feedback about: 1. Mix of Uses. The appropriateness of the proposed project’s mix of uses at the subject location. 2. Parking Structure and Transit Center. The appropriateness of a parking garage and a transit center at the subject location and what additional information the Commission would like to see with future submittals. 3. Planned Development. Building Height and Amenities. Overall height of the proposed 75-foot tall structures in the context of the site/neighborhood, Downtown core, and within the height allowed in the Zoning Regulations for this zone. Should any performance standards or amenities be modified? 4. Plaza Design. The appropriateness of the proposed location of the plaza and if other amenities should be included as part of the design. 5. Driveway location. The appropriateness of the proposed location of the main hotel driveway entry along Monterey Street. 12 Packet Pg. 225 ENVIRONMENTAL REVIEW Should the applicant decide to submit formal applications for a proposed project at this location, staff will prepare an initial study of environmental impact. Attachments: a - Vicinity Map b - Downtown Planning Area c - Project Plans d - Land Use Element Policies 12 Packet Pg. 226 O O O OC-R C-R C-D C-R O OC-R C-R PF C-D PF O-H O C-D-H C-RR-3-HR-3-HR-2-H C-R C-C C-D PF-H T O R O HIGUERAPALMMONTEREYMARSHS A N T A R O S A VICINITY MAP ARCH-2484-20151101 Monterey St ¯ ATTACHMENT A 12.a Packet Pg. 227 Attachment: a - Vicinity Map (1249 : Conceptual review of a new mixed-used project at 1101 Monterey Street) Land Use Element Page 1-39!!!£¤101 MI LLCHORROP IS M O H IG U E R A HIGH MA R SH LE FFISL A Y T OROOSOSB UC HO N SANT A ROSAMORROP E A C H M O NT E REY NI POMOE LLAA BRANCHHI L L GARDENP AL M BEACHPEPPERLINCOLNO LIVE WOODBRIDGE GROVECARMEL SANDERCOCK W AL N UT BEEBEED A N A IR IS C H U RC H U P H A M OAK BRIDGE MURRAY CORRIDAMADONNA GRAVESM I S S I O N SANTA BARBARAG E O R G E ARCHERCAUDILL MONTALBAN PRICEC E N T E R WILSONSERRANO VI CTORI ASTORYALMONDRACHELN OFF101 N ONOWHI LLC R ES T PARKCYPRESSWAL KERWEST GAILTA FT M O UN T A IN V IE W PAC IFIC P H ILLIPS WARDM B E R TBRE CK SWAZEYKENTUCKY ALLEY BIANCHI COURT P E NNY IMAN IP O M O A LLE Y P AL M MI LL AL LEY PAULINE H IG UE RA PA C IF IC BROADMURRAY BROADMI SSI ONP AL M Figure 4 Legend Downtown Core Downtown Planning Area Roads Source: City of Sanu Luis Obispo, 2012 01,000500 Feet Downtown Planning Area and Core 12.b Packet Pg. 228 12.c Packet Pg. 229 12.cPacket Pg. 230 12.c Packet Pg. 231 12.c Packet Pg. 232 12.c Packet Pg. 233 12.c Packet Pg. 234 12.c Packet Pg. 235 12.c Packet Pg. 236 12.c Packet Pg. 237 ATTACHMENT D Land Use Element Policies Chapter 4: DOWNTOWN 4.5. Walking Environment The City shall plan and manage Downtown to include safe, interesting places for walking and pleasant places for sitting. To this end: A. Mid-block walkways, courtyards, and interior malls should be well lit and integrated with new and remodeled buildings, while preserving continuous building faces on most blocks. B. Downtown streets should provide adequate space for pedestrians. C. There should be a nearly continuous tree canopy along sidewalks, and planters should provide additional foliage and flowers near public gathering areas. D. Public Art should be placed along pedestrian paths. E. Traffic calming and pedestrian safety should be enhanced, where appropriate, through such features as road tables, pavement changes, bulb outs and scramble intersection signals. F. Landscaping should mitigate harsh micro-climates. 4.17. New Buildings and Views Downtown development nearby publicly-owned gathering places shall respect views of the hills. In other locations Downtown, views will be provided parallel to the street right-of-way, at intersections where building separation naturally makes more views available, and at upper-level viewing decks. 4.20.4. Building Height New buildings shall fit within the context and scale of existing development, shall respect views from, or sunlight to, publicly-owned gathering places such as Mission Plaza, and should be stepped back above the second or third level to maintain a street façade that is consistent with the historic pattern of development. Generally, new buildings should not exceed 50 feet in height. Tall buildings (50-75 feet) shall be designed to achieve multiple policy objectives, including design amenities, housing and retail land uses, such as: A. Publicly accessible, open viewing spaces at the upper levels B. Housing affordability in excess of the Inclusionary Housing Requirement C. Energy efficiency beyond State mandated requirements D. Adaptive reuse of a historical resource in a manner consistent with the Secretary of the Interior’s Standards for Rehabilitation E. High residential density (e.g. above 24 units per acre) achieved by a concentration of smaller dwelling units F. Street level features such as a public plaza, public seating and/or public art G. Provide midblock or other significant pedestrian connections H. Increased retail floor area, including multi-story retail I. Directly implements specific and identifiable City objectives, as set forth in the General Plan, the Conceptual Plan for the City’s Center, the Downtown Strategic Plan and other key policy documents 12.d Packet Pg. 238 Attachment: d - Land Use Element Policies (1249 : Conceptual review of a new mixed-used project at 1101 Monterey Street) ATTACHMENT D J. Receiving Transfer of Development Credits for open space protection or historic preservation K. Proximity of housing to convenient transit connections Chapter 8: SPECIAL FOCUS AREAS 8.2.2. Upper Monterey In the Upper Monterey area, the emphasis will be on revitalization and enhancement. The area above Johnson shall have an emphasis on land use compatibility and neighborhood preservation. The following actions will be pursued in this area. A. The City shall investigate adding the Upper Monterey area to the Downtown Parking District, thereby allowing in-lieu payment towards common parking facilities. B. The City shall integrate a new Downtown Transit Center in the Upper Monterey area and provide enhanced connectivity to the center from the Upper Monterey area. C. The City will work with hotels in the Upper Monterey area to provide shuttle service to the Downtown and Downtown Transit Center. D. The City will promote restaurant development in the Upper Monterey area, and include outdoor dining opportunities and other public activities oriented toward Monterey Street. North of California, these types of activities shall be prohibited on the creek side of buildings. E. The City will evaluate reconfiguring Monterey Street in this area to enhance bicycle and pedestrian connectivity to Downtown and to Cal Poly. F. The City will work with local hotels and Cal Poly to develop enhanced meeting rooms and conference facilities. These types of facilities would not be located on the east side of Monterey north of California Street, nor is a stand-alone conference center appropriate for this area. G. The City will work with developers to assemble adjacent properties into lots of suitable size for redevelopment limited to areas southwest of California Street. H. The City will develop an Upper Monterey area master plan and design guide that will provide guidance on street enhancements, façade improvement programs, and pedestrian enhancement along Monterey Street. As part of this effort, the City will investigate the ability to apply form-based codes to guide future development and will involve residents in adjoining areas as well as business and property owners along Monterey Street as part of the public review process in development of the master plan/design guide. Particular attention will be given to creek protection, noise, safety, light and glare, and privacy impacts to adjoining neighborhoods. 12.d Packet Pg. 239 Attachment: d - Land Use Element Policies (1249 : Conceptual review of a new mixed-used project at 1101 Monterey Street) Meeting Date: 2/16/2016 FROM: Katie Lichtig, City Manager Derek Johnson, Assistant City Manager and Interim Finance & Information Technology Director Shelly Stanwyck, Parks and Recreation Director Xenia Bradford, Budget Manager SUBJECT: 2015-16 MID-YEAR BUDGET REVIEW RECOMMENDATION 1. Receive and discuss an update of changes in the financial position (Attachment B, Section A) based on revised projections for all funds for the 2015-16 Fiscal Year, and the General Fund Five-Year Forecast for 2015-2016; and 2. Receive an update on Status of Major City Goals and Other Important Objectives (Attachment B, Section C); and 3. Adopt Resolution (Attachment A) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving changes to the 2015-16 Budget as presented in the accompanying Mid-Year Budget Review document”. DISCUSSION The accompanying Mid-Year Budget Review for 2015-16 provides a comprehensive overview of the City’s fiscal condition at the mid-point of the fiscal year. The Transmittal Memorandum (starting on page A-1) sets forth summary of the Five Year General Forecast 2015 -20 and a concise summary of key General Fund revenue and expenditure trends since adoption of the 2015-17 Financial Plan in June 2015. The report’s main focus is on the General Fund, however updated information is provided for each fund. The report also includes a comprehensive status of major City goals, capital improvement plan (CIP) projects and other important objectives. Background The City’s two-ye ar Financial Plan provides for the submittal of a report on financial status to the Council every six months. For fiscal monitoring purposes, on-line access to up-to-date information is available to all departments. Additionally, focused reports are issued to the Council and staff on key revenues such as sales tax, transient occupancy tax and investments, as well as ad hoc reports as needed. 13 Packet Pg. 240 However, the formal submittal of a review at the mid-point of the fiscal year provides an opportunity to take broader look at the City’s financial picture, including: 1. Updating beginning fund balance projections based on actual results for the prior fiscal year as confirmed in the audit and reported in the Comprehensive Annual Financial Report (CAFR). 2. Analyzing revenue and expenditure trends and presenting an updated Five Year General Fund forecast. 3. Analyzing revenue trends since adoption of the Financial Plan, and revising revenues and ending fund balance projections accordingly. 4. Identifying and presenting any areas of uncertainty or concern, and recommending corrective action or additional funding if required. 5. Presenting the status of major City goals, CIP projects and other important objectives. Report Organization Section A: Transmittal Memorandum: Provides a narrative overview of the City’s fiscal environment. Provides an update to the General Fund Five Year Forecast with previous fiscal year audited fund balance results and the most recent revenue and expenditures trends. Provides a summary of administrative and previously adopted by Council budget adjustments since the adoption of 2015-17 Financial Plan. Provides with Mid-Year recommended budget adjustments for Council approval and recommendations for the use of surplus fund balance. These adjustments would be made by adopting a Resolution (Attachment A) which accepts the report and adjusts the budget as shown on pages A-4 of report. Section B: Financial Condition Summaries: Provides comprehensive presentations and updates of projected revenues and expenditures based on staff’s best and most prudent professional judgment. Updates beginning fund/working capital balances based on actual audited 2010-11 results and projected ending balances for 2011-12 based on changes from original budget estimates. Section C: Status of Goals and Objectives: Provides a report on Major City Goals, Other Council Objectives, and the status of major Capital Improvement Plan (CIP). Section D: Recent financial and revenue reports: Provides the most recent Quarterly Financial Report, Quarterly Sales Tax Newsletter and Monthly TOT Report. Summary of Mid-Year Budget Review Results This Mid-Year Review shows that the City continued to experience consistent economic growth for the past six months. Due to prudent expenditure management and more favorable than expected revenue trends in 2014-15, the City has available one-time funds in the amount of $4.949 million. The Five Year General Fund Fiscal Forecast shows a balanced budget through 2020. Due to unpredictability of the weather with El Niño and the potential for other unbudgeted 13 Packet Pg. 241 expenditures, staff recommends that the City Council delay allocation of General Fund reserves in excess of the 20% policy level. Staff intends to return to Council with the 2016-17 Supplemental Budget in June 2016 to make recommendations for the use of these one-time funds. Fiscal Impact The following budget adjustments are recommended for Council approval. Fiscal Year 2015-16 Mid-Year Adjustment Requests General Fund Program Budget Action Adjustment Amount Council Action Requested Golf Course Increase Expenditure 35,945 Increase Regular Staffing Budget due to needed correction in projected staffing costs. No change in FTE allocation. General Fund Appropriate Fund Balance 97,239 Appropriate over-realized mutual aid revenue to pay for expenditures associated with the Sub Fire. Parking Fund Parking Fund Decrease Revenue (972,570) Correct over programmed In-lieu fees. Affordable Housing Fund Begin Program Increase Expenditure 398,362 Appropriate available Begin Program balance. The Council will have the opportunity to allocate the $4.9 million in General Fund available fund balance for one-time expenditures and the Local Measure available balance in the amount of $281,935 when the 2016-2017 Supplement is considered. Attachments: a - Resolution b - Mid Year Report 2015-16 13 Packet Pg. 242 R ______ RESOLUTION NO. (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING CHANGES TO THE 2015-16 BUDGET WHEREAS, the City Council adopted the 2015-16 Financial Plan on June 1, 2015, which established comprehensive financial and policy guidelines for fiscal years 2015-16 and 2016-17; and WHEREAS, in accordance with the City’s Budget and Fiscal Policies, staff has completed a review of the city’s revenue and expenditure trends and has developed revised budget amounts which are explained and compiled in the Mid-Year Budget Review; and WHEREAS, the City Manager has recommended the approval of budget adjustments and Council authorization of appropriation and expenditure of funds for the response to the Sub Fire; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: a) The report for the 2015-2016 Mid-Year Budget Review is hereby received and filed; and b) The revised revenue and expenditure forecast amounts for the 2015 -16, identified in the Mid-Year Budget Report in section B, presented on this date are hereby adopted as the revised budget for 2015-16. c) The budget adjustment requests for the Golf Course Program salaries and benefits expenditures, the appropriation for Sub Fire expenditures, the Affordable Housing Begin Program appropriation of fund balance, and the Parking Fund revenue adjustment as shown on Page A-4 of the 2015-2016 Mid-Year Budget Report are hereby approved. Upon motion of ________________, seconded by _________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted on February 16th, 2016. _____________________________ Mayor Jan Howell Marx 13.a Packet Pg. 243 Attachment: a - Resolution (1254 : 2015-16 Mid-Year Budget Review) Resolution No. _____ (2016 Series) Page 2 R ______ ATTEST: ____________________________ Jon Ansolabehere Interim 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 ______________, _________. ______________________________ Jon Ansolabehere Interim City Clerk 13.a Packet Pg. 244 Attachment: a - Resolution (1254 : 2015-16 Mid-Year Budget Review) San Luis Obispo, California 2015-16 Mid-YearBudget Review For the 2015-17 Financial Plan 13.b Packet Pg. 245 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-17 Financial Plan MID-YEAR BUDGET REVIEW: 2015-16 February 2016 JAN HOWELL MARX, MAYOR DAN CARPENTER, VICE MAYOR JOHN ASHBAUGH, COUNCIL MEMBER CARLYN CHRISTIANSON, COUNCIL MEMBER DAN RIVOIRE, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technology Derek Johnson, ACM/Interim Director of Finance & Information Technology Shelly Stanwyck, Parks & Recreation Director Xenia Bradford, Budget Manager Vilma Warner, Finance Operations Manager Michelle Bulow, Administrative Assistant 13.b Packet Pg. 246 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Summary of Significant Findings A-2 Recommendations A-4 General Fund Balance A-5 Five-Year Forecast Update A-7 Conclusion A-14 B. Financial Condition Summaries Revenue by Major Category B-1 Changes in Financial Position B-8 Revenue Budget Adjustments B-39 Expenditure Budget Adjustments B-40 Interfund Transactions B-42 C. Status of Goals and Objectives D. Recent Financial and Revenue Reports Sales Tax Newsletter: Second Calendar Quarter 2015 D-1 Monthly TOT Report: November 2015 D-3 Overview C-1 Open Space Preservation C-4 Multimodal Transportation C-9 Housing C-13 Neighborhood Wellness C-19 Laguna Lake Restoration C-22 Fiscal Stability and Responsibility C-24 Downtown C-27 Status of Major CIP C-29 13.b Packet Pg. 247 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Section A TRANSMITTAL MEMORANDUM 13.b Packet Pg. 248 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) February 16, 2016 TO: Mayor and City Council FROM: Katie Lichtig, City Manager Derek Johnson, Assistant City Manager & Interim Director of Finance and Information Technology Shelly Stanwyck, Parks & Recreation Director Xenia Bradford, Budget Manager SUBJECT: MID-YEAR BUDGET REVIEW FOR 2015-16 OVERVIEW The City’s Budget and Fiscal Policies call for a formal financial status report to the Council for every six-month period. The Mid-Year Budget Review meets this requirement and allows the Council to take a broader look at the City’s financial picture at the mid-point of the fiscal year. This report provides: 1. An update to the beginning fund balance projections based on actual audited results from the prior fiscal year with uses to be considered during strategic budget direction. 2. An analysis of revenue trends since adoption of the Financial Plan, and revision of revenue and ending fund balance projections accordingly. 3. A review of the Five-Year General Fund forecast that provides an assessment of the fund’s ability to deliver current services levels; maintain existing infrastructure and facilities; preserve the City’s long-term fiscal health; reinvest in the General Fund supported Capital Improvement Program; and maintain fund balance at policy level. 4. An update on the status of the Major City Goals program, Capital Improvement Plan projects and other objectives. 5. Identification of any budget adjustments that require Council action, and recommendations for supplemental budget adjustments. This mid-year budget update shows that economic conditions continue to be favorable for the City. The first two quarters of 2015-16 show increases in major General Fund Revenues such as Sales Tax, TOT, property tax and community development. Given increases in expenditures due to inflation, cost of living adjustments, and increased workloads in areas of expansion such as community development, the General Fund Five-Year forecast, shows a balanced budget for the five year outlook given current service levels. The General Fund balance as of the Fiscal Year end 2014-15 is $23.8 million, of which $4.949 million is unassigned and available for appropriation. These are one-time funds that under the City’s policy of balanced budget should not be used to fund ongoing expenditures. As part of the 2014-15 Mid-Year Report, the Council adopted policy guidance prioritizing the City’s underfunded liabilities for accelerated payments. This guidance provides specific direction to give priority consideration to 1) accelerated payment to the unfunded pension liability, 2) Other Post Employment Benefit (OPEB) liability, 3) roads infrastructure, and 4) equipment replacement funds (in that order). This policy was incorporated into the 2015-17 Financial Plan. The 2015-2017 budget prefunds portions of the City’s long-term liabilities. Higher CalPERS rates allocate additional funding to the City’s unfunded pension liability. Above these increased payments the budget allocates and additional $750,000 to prepay a portion of the pension liability and $250,000 as a prepayment to OPEB liability. Also, the budget adds $275,000 to A-1 13.b Packet Pg. 249 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) deferred road maintenance, $450,000 to the City’s fleet replacement, and $450,000 for information technology equipment replacement. Although all major indicators are pointing in a positive direction for the City’s revenue sources, it is important to note that very significant fiscal challenges are expected in the upcoming years as it relates to the City’s expenses. Recent stock market losses will continue to escalate costs of retirement programs. Furthermore, volatility in insurance rates and the need to address deferred maintenance are expected to place demands on the City’s revenue sources. This fiscal year, the City also faces unpredictability of nature and potential impacts of El Niño. In light of this unpredictability and potential for unbudgeted expenditures in 2015-16 due to El Niño impacts, staff recommends returning with recommendations for appropriation of any available one-time funds with Supplemental budget for FY 2016-17. This seems like a prudent approach given the City’s past history of wise fiscal stewardship. Additionally, the allocation of these funds would need to be evaluated in the context of capacity to achieve existing priorities and adding major new work efforts. In addition, the City is working with the County of San Luis Obispo on scope and cost for a replacement countywide animal shelter. While the County is still working on presenting sufficient information on the project scope, cost discussions with County staff indicate that the costs could be up to $14 million for the facility. The capital project will likely require either onetime or ongoing (i.e. if the City’s portion is debt funded) funding and the estimated cost will become known in the next several months. All Funds Reviewed Through the Mid-Year Review, revenue and expenditure trends have been reviewed and budget adjustments are proposed in this document based on the trends. General Fund Summary of Significant Findings After reviewing the City’s audited financial results from 2014-15 and analyzing the current fiscal year-to-date revenue and expenditure trends, staff applied its best and most prudent professional judgment to confirm the revenue and expenditure projections for the rest of the fiscal year. The following points highlight the major changes that have been made to the original General Fund revenue and expenditure projections compared to the adopted 2015-16 budget: 1. Revenue: General Fund revenues received through January were compared to receipts from 12 months ago and a forecast of future revenues for the rest of the fiscal year was developed to determine the annual revenues to be derived from each revenue source. 2015-16 revenues are forecast to increase by a total of $1.232 million over the original budget amount. Of this amount, tax revenues are projected to increase by $554,000. $678,810 of the increase in revenue is from development review fees. The revised projections for major revenues shown in this document represent growth trends that are in line with those provided by the City’s sales tax advisor for sales tax assumptions, and other outside sources such as the county for property tax receipts, current contract agreements related to fee reimbursements and current local revenue trends. 2. Expenditures: The budget continues the assumption that there will be savings in budgeted salaries and benefits equal to approximately $1.49 million. 3. Insurance Benefit Fund: 2015-17 Financial Plan authorized an additional payment of $750,000 for CalPERS unfunded liability and $250,000 for OPEB unfunded liability. These funds were originally transferred to the Insurance Benefit Fund. The mid-year budget allocates the funds from fund balance to expenditure in order to accommodate the payment. A-2 13.b Packet Pg. 250 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 4. Development Services: By resolution on June 17, 2014 the City Council revised fiscal policies to provide for the City Manager to reallocate up to 75% of Development Services revenues to acquire temporary resources for the timely processing of development applications and other permit processing activities. The policy calls for reallocated revenues to be reported to the City Council on a semi-annual basis as part of the mid-year and annual budget presentations. Development review activity remains at a high level. In Fiscal Year 2014-15 Development Services revenues collected were $1,840,068 in excess of the budget; $1,380,051 or 75% of this excess has been allocated to Development Services operating expenditures. $995,939 of this amount was allocated in the 2015-16 Financial Plan and the remaining $384,112 have been allocated by the City Manager to Development Services program in order to accomplish the timely processing of development permit applications and perform other related permit processing activities. In 2015-16, Development Services revenues are projected to be $678,810 in excess of the original budget forecast. $509,107 or 75% of this amount is recommended to be either allocated or designated for development services expenditures once the revenue is actually realized at the end of 2015-16 fiscal year. Development review fees paid at the time of an application represent a prepayment for work in conjunction with the development review process. Not all of these fees should be allocated for expenditures in the period they are received because some of the work can only occur when the project is under construction, which may be many months or years after an application is processed and payment is received. 2014-15 75% 2015-16 75% 3,396,300.00 3,957,060.00 Mid-Year Revised Budget 4,724,218.00 4,635,870.00 Variance 1,327,918.00 995,939 678,810.00 509,108 5,236,368.00 Variance 512,150.00 384,113 Development Services Expenditure Appropriations of 75% in Over-Realized Revenue 2015-16 2015-16 Financial Plan Allocation 995,939 Year-End City Manager Allocation 384,113 Total Allocated 1,380,051 Adopted Budget Year-End Actual Development Services Revenue A-3 13.b Packet Pg. 251 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Recommendations In general, staff has only proposed mid-year budget requests that need to be considered now in order to meet timing requirements or adequately fund current programs. Accordingly, there are three General Fund expenditure requests and one Parking fund request submitted for Council consideration during this Mid-Year Review. FY 20-15-16 Mid-Year Review Adjustment Requests General Fund Program Budget Action Adjustment Amount Council Action Requested Golf Course Increase Expenditure 35,945 Increase Regular Staffing budget due to needed correction in projected staffing costs. No change in FTE allocation. General Fund Designate Fund Balance 97,239 Appropriate over-realized mutual aid revenue to pay for expenditures associated with the Sub Fire. Parking Fund Parking Fund Decrease Revenue (972,570) Correct over programmed In-lieu fees Affordable Housing Fund Begin Program Increase Expenditure 398,362 Appropriate available Begin Program balance. A-4 13.b Packet Pg. 252 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) FINANCIAL CONDITION SUMMARY FY 2014-15 General Fund Balance Based on the 2014-15 financial results reported in the Comprehensive Annual Financial Report, combined with updates to revenue and expenditure projections in 2015-16, the 2016-17 unrestricted fund balance above the 20% policy level is $4.949 million. This amount is a result of one-time expenditure savings and higher than budgeted revenue growth. Actual revenue received was $2.544 million higher than final budget and expenditures were $3.650 million lower than final budget. With these revenue and expenditure trends, the five-year forecast shows little variation between revenues and expenditures into the outer years, showing a balanced budget. Staff recommends reviewing this trend closer for ongoing revenue and expenditures with the development of the 2017-19 Financial Plan. The $4.949 million in fund balance should be considered one-time savings and is available for use on future, one-time spending. However, given the uncertainty and the potential for unbudgeted expenditures due to El Niño in 2015-16, staff recommends returning to Council with recommendations to allocate the resources as part of Supplemental budget 2016-17. A-5 13.b Packet Pg. 253 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) In addition, due to actual revenues above budget and savings in expenditures, another $281,935 is available in the Local Measure Y/G funds. In 2014, voters approved the extension of the one-half cent local sales tax, known as Measure G, which included a provision to create a Citizen’s Revenue Enhancement Oversight Commission (REOC) to make recommendations to the Council for local revenue measure uses. Staff will seek recommendations from REOC in April of 2016 for allocation of the $281,935 in excess local revenue measure funds and return to Council with final recommendations as part of Supplemental budget 2016-17. When 2015-17 Financial Plan was developed and adopted, the budget planners did not know what costs would be supported by the Local Revenue Measure. Now that the Revenue Enhancement Oversight Committee (REOC) has met and determined the level of support that will be given to the various programs, the budget has been adjusted to reflect the allocation of Local Measure funds to according functions. These support amounts are primarily based on the cost of certain positions within the program performing basic functions that are identified as being a Measure G priority in order to provide a reasonable and quantifiable sum. The distribution of the Local Measure expenditures by function is shown below. A-6 13.b Packet Pg. 254 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Five-Year General Fund Forecast Update The purpose of the General Fund fiscal forecast is to evaluate current and future fiscal conditions to guide decisions about goals, policies, and programs. It is important to stress that forecast is not a budget. This update to the five- year forecast presents changes in assumptions to revenues and expenditures given the results of the first two quarters of this fiscal year. Summary of Forecast Findings The graph below shows historical trends between actual revenues and expenditures since 2000 and the five year forecast through 2020. As the graph depicts, the 2015-17 financial plan is balanced by using general fund reserves above policy requirement of 20% of operating expenditures to address some one-time expenditures, the fiscal forecast in the outer years, shows a balanced budget. A-7 13.b Packet Pg. 255 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Revenue growth rate from July through December, showed higher than projected growth in Sales Tax and Transient Occupancy Tax (TOT). HdL, the City’s sales tax advisor, provided an updated five year forecast for sales tax revenues based on these favorable trends. Sales tax assumptions have been adjusted based on HdL recommendations. Sales tax growth rate has been adjusted to 5.5% for 2014-15 from an original estimate of 3.9%, resulting in an increase of $554,000. $264,000 of this increase is Local Measure sales tax portion. Transient Occupancy Tax growth rate has been held steady at this time due to declining occupancy rates in November 2015. Coupled with unpredictability of El Niño locally and snow in the mountains attracting tourism following years of drought in California, TOT growth for the City may decline through the winter Property tax revenue assumptions have not been changed. Staff will revise property tax revenues in the fall when the County of San Luis Obispo releases property tax forecast for 2016-17 and adjust as needed for 2016-17 Supplemental Budget. Development services revenue has been higher than budgeted from July through November and has been adjusted upward for the current 2015-16 fiscal year by $679,810. Future revenue growth, which already estimates an aggressive rate of growth, has been held at previously forecasted levels at this time. Development services expenditures are expected to increase at proportional rate to maintain current level of service. The operating expenditures growth rate for all other ongoing expenditures has been revised upward by 0.5%, from 2.5% to 3%, into the outer years from FY 2015-17 Financial Plan This revision is recommended to ensure that the forecasted expenditures are adequate to maintain current service levels. The growth rate is estimated to accommodate inflation and wage increases. Expenditures have also been adjusted to reflect the CalPERS costs released with 2014 year end actuarial results. A-8 13.b Packet Pg. 256 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Changes in Revenue Assumptions Sales tax gross receipts for top 25 businesses compared to 2014 from July through December 2015 showed an average growth rate of 5.1%. Coupled with expected commercial sector developments, HdL recommends a growth rate of 5.5% for 2015-16. The graph below shows the trend in sales tax for seven major industry groups. General Consumer Goods remains to be the largest share of total sales, followed by Autos & Transportation and Restaurants & Hotels. The total sales tax shows a linear steady increase for the past five years. The chart below shows actual general Sales Tax growth rate since 2010-11 through 2014-15 and the five year forecast. Fiscal Year Ending 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Growth Rate 12.8% 9.8% 7.2% 6.4% 2.4% 5.5% 4.3% 4.1% 3.5% 3.4% Note: fiscal year 2013-14 and 2014-15 growth rates have been adjusted to reflect real growth rate. 2013-14 sales tax receipts included $247 thousand in sales tax that was reported by taxpayers to the wrong agency. This amount was adjusted negatively impacting the city’s actual sales tax receipts in 2014-15. A-9 13.b Packet Pg. 257 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Staff will continue to monitor the trends and will return with updated recommendations on sales tax growth with the 2016-17 Supplemental budget. Development Revenue continues to grow above expectations. 2015-16 Development Revenue has been adjusted upward by $679,810. This amount is comprised of $347,310 in planning & zoning fees, $258,000 in building permits fees, and $73,500 in fire plan check fees. Changes in Expenditure Assumptions Operating expenditure annual growth rate beyond the 2015-17 financial plan has been adjusted to 3% to reflect the results of labor agreement changes adopted in 2015-16 and to accommodate future increases due to inflation, wage increases and population growth. The 15 year average percent change in CPI for California has been 2.7% and the 15 year average population growth rate for San Luis Obispo has been 0.3%. Fiscal Year 2013-14 showed a spike in building permit valuation of 47% growth. Beacon Economics, contracted by the City to prepare an economic forecast for the city of San Luis Obispo, presented a forecast in December of 2014, showing continuing rapid growth in building permit valuation through 2020, with the exception of 2015-16 estimating a relative slowdown in growth after the rapid expansion in 2013-14 of -20%. In order to maintain current levels of service, the five year expenditure forecast for development services is based on this forecast lagged by one year according to staff recommendations. Retirement rates have been adjusted based on the latest valuation reports from CalPERS as of June, 2014. There is no significant variance between previously forecasted retirement expenditures and this update. A-10 13.b Packet Pg. 258 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) City of San Luis Obispo - General Fund Five Year Fiscal Forecast FY 2015-16 Mid-Year Update $ in 000's Actual Budget Revised Budget 2014-15 2015-16 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20 1 Sales Tax 15,273 17,247 17,537 16,941 17,118 17,812 18,435 19,078 2 Measure Y/G Sales Tax 7,136 7,133 7,397 7,433 7,703 8,015 8,296 8,585 3 Sales Tax Prop 172 410 420 420 429 429 438 447 456 4 Property Taxes 9,632 9,726 9,726 10,106 10,106 10,500 10,909 11,335 5 Property Tax in Lieu of VLF 3,849 4,042 4,042 4,199 4,199 4,363 4,533 4,710 6 Transient Occupancy Tax 6,806 6,844 6,844 7,170 7,170 7,592 7,956 8,302 7 Utility Users Tax 5,211 5,506 5,506 5,671 5,671 5,841 6,017 6,197 8 Franchise Fees 2,790 1,540 1,540 1,557 1,557 1,596 1,636 1,677 9 Business Tax 2,203 2,339 2,339 2,395 2,395 2,455 2,516 2,579 10 Real Property Transfer Tax 298 184 184 187 187 191 238 199 11 Subtotal Taxes 53,608 54,981 55,535 56,088 56,536 58,804 60,984 63,119 12 Transfers In (Gas, TDA, CoS, Other)1,505 2,318 2,341 2,371 2,371 2,371 2,371 2,371 13 Other Subventions & Grants 1,278 323 335 323 323 323 323 323 14 Development Review Fees 5,274 3,811 4,490 4,189 4,189 4,856 5,569 6,235 15 Rental Inspection Fees 146 146 280 280 461 472 484 16 Recreation Fees 1,881 1,646 1,646 1,646 1,646 1,679 1,713 1,747 17 Other Service Charges 1,875 1,738 1,738 1,750 1,750 1,777 1,803 1,830 18 Other Revenues 697 543 553 543 534 534 534 534 19 Subtotal Non-Tax Revenues 12,510 10,525 11,249 11,102 11,094 12,001 12,786 13,524 20 Total Resources 66,120 65,506 66,785 67,190 67,629 70,804 73,770 76,643 21 Operating Expenses (excl PERS)1 44,576 47,146 47,610 48,562 49,071 50,264 51,958 53,984 22 PERS Normal Costs 2 4,322 3,727 3,833 3,944 3,833 4,175 4,298 4,418 23 PERS Unfunded Liability 3,536 5,680 5,629 6,309 6,246 6,246 7,794 8,649 24 Subtotal: Operating Expenses 52,434 56,553 57,072 58,814 59,150 60,684 64,050 67,051 25 Debt Service 5,312 3,015 3,015 3,048 3,048 3,235 3,305 2,928 26 Transfer to CDBG 73 147 147 154 154 154 154 154 27 Transfer to Insurance Benefit Fund 280 2,124 2,124 - - - - - 28 CIP - Fleet Replacement 533 1,229 1,229 613 613 604 471 640 29 CIP - IT Replacement 991 1,191 1,191 709 709 726 876 597 30 CIP - Major Facility Replacement 551 837 837 545 545 915 790 1,190 31 CIP - All Other 2,918 5,495 5,495 4,153 4,153 3,567 3,879 3,867 32 Subtotal: Operating Transfers 10,658 14,037 14,037 9,222 9,222 9,201 9,474 9,376 33 Total Expenditures 63,092 70,591 71,110 68,036 68,372 69,885 73,524 76,428 34 Resources Over/(Under) Expenses 3,028 (5,085) (4,325) (846) (742) 919 246 216 35 Fund Balance, Beginning of Year 20,317 18,289 23,847 13,204 18,006 17,264 18,182 18,429 36 Encumbrances (1,516) 37 Funding Adjustment 502 - - - - - 38 Ending Fund Balance 23,847 13,204 18,006 12,358 17,264 18,182 18,429 18,644 39 Reserve @ 20% Operating Costs 10,487 10,389 10,389 10,460 10,581 11,188 11,551 11,980 40 Adj for Debt Svc Reserve (303) (303) (303) (303) (303) (303) (303) (303) 41 Designated Reserve (8,108) (1,402) (963) (1,402) (963) (963) (963) (963) 42 Reserve Over/(Under) Policy Level 4,949 1,110 6,351 193 5,417 5,729 5,611 5,398 Notes 1 PERS costs estimated based on CalPERS valuation reports and are broken out to show contribution to normal cost unfunded liability. Forecast A-11 13.b Packet Pg. 259 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) FY 15-16 General Fund Revenues Included in Section B of this report is a summary of revenues by fund and major sources that provides actual results for 2014-15, and original budgeted amounts for 2015-16 along with revised projections and respective variances for each source. Based on this Mid-Year Review, overall projections for 2015-16 General Fund revenues are now anticipated to be $1.233 million higher than projected in the 2015-17 Financial Plan. $264,000 of this amount is an increase in Local Measure sales tax revenue. $290,000 is an increase in general sales tax and $679,810 is an increase in development services fees. 1.General Sales Tax. Based on the latest forecast provided by HdL, the City’s sales tax advisor, general sales tax receipts will reflect an increase of $290,000 compared to the original budget. This increase is the result of higher sales tax receipts from July through December of 2015. 2.Local Sales Tax. Using the HdL forecast for Local Sales Tax revenue (Measure Y/G), the mid-year revision reflects an increase in receipts of approximately $264,000 compared to the original budget. This increase is the result of higher sales tax receipts from July through December of 2015 3.Development Review Fees. Revenues collected through December 2015 are well ahead of expectations. The mid-year revised projection reflects adjustments to account for the fees already received and those anticipated to be received during the current year from proposed development activity. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to be $687,810 more than the original budget forecast. FY 2015-16 General Fund Operating Program Expenditures Section B includes an overview of changes to the operating program budgets. Organized by fund, these schedules include the original budget, re-appropriations for encumbrances and carryovers, and budget changes to-date since approval of the 2015-17 Financial Plan in June 2015. These summaries also reflect the Mid-Year budget requests, which are discussed later in this document. Below is a description of items affecting General Fund. General Fund - The revised budget shows a $1,980,010 increase in the General Fund operations. Of this amount: •$1,516,180 pertains to encumbrance roll-over for prior year commitments; •$384,112 reflects allocation of excess Development Services fee revenue from 2013-14; •$35,945 reflects allocation to Golf Program to correct regular salaries and benefits budget; •$12,200 relates to expenditures tied to grant reimbursements with the corresponding revenues added to the budget; •$22,938 in transfer from PEG funds for Chamber projector and broadcast room; •$5,240 in other miscellaneous expenditures and offsetting revenue. Detailed listing of expenditure budget adjustments are provided in Section B of this Mid-Year Report (Summary of Expenditure Budget Adjustments). A-12 13.b Packet Pg. 260 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Other Funds Significant Changes 1. Public Art – Approved allocation from fund balance in the amount of $48,000 for Box Art painting and $28,500 for Public Art maintenance. 2. Sewer Enterprise Fund – The service charge fee revenue estimate budget is proposed to increase by $250,000. The increase is driven by higher than anticipated development impact fees. 3. Water Enterprise Fund – The service charge fee revenue estimate budget is proposed to increase by $200,000 based on higher than anticipated water impact fees receipts. 4. Insurance Benefit Fund – The expenditure budget shows an additional payment to CalPERS for unfunded liability in the amount of $750,000 and an additional payment of $250,000 to OPEB unfunded liability as directed by 2015-17 Financial Plan. 5. Affordable Housing Fund – The revised budget proposes an allocation of available fund balance for the Begin Program in the amount of $398,362. Capital Improvement Program Expenditures The Capital Improvement Program (CIP) budget reflects an increase of $44.078 million across all funds. The majority of this amount represents carryover of encumbrances and unexpended balances from 2014-15. Changes are displayed in Section B, summary of Expense Budget Changes. Projected Fund Balances/Working Capital Based on the revised estimates for revenue projections and expenditures, this part of Section B includes a summary of projected changes in financial position for each of the City's funds. The changes in financial position schedules include the actual fund balances/working capital along with the original budget and revised budget projections for 2015-16, and reflect budget changes that have already been approved since the beginning of the fiscal year. The costs and estimated revenues (if any apply) that are associated with the following Mid-Year supplemental funding requests are also reflected in the ending fund balance. Summaries of Revenue & Expenditure Budget Adjustments This part of Section B reflects the budget changes that have taken place to carryover prior year encumbrances, carryover unspent capital project balances and other routine budget changes that do not have significant policy impacts and will not affect budgeted fund balances or working capital that have occurred since the approval of the 2015-17 Financial Plan in June 2015. These summaries also reflect the mid-year budget requests. Inter-Fund Transactions This portion of Section B reflects actual inter-fund transfers for 2014-15 along with the original budget and revisions for 2015-16. The revised operating transfers are explained below: General Fund Transfer In -The General Fund received a $22,938 increase in transfer from the PEG fund for chamber projector and broadcast room improvements. A-13 13.b Packet Pg. 261 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) CONCLUSION This Mid-Year review shows that the City continued to experience consistent economic growth for the past six months. Due to prudent expenditure management and more favorable than expected revenue trends in 2014-15, the City has available one-time funds in the amount of $4.949 million. The five year General Fund fiscal forecast shows a balanced budget through 2020. Due to unpredictability of the weather with El Niño and the potential for other unbudgeted expenditures, staff recommends that the City Council delay allocation of General Fund reserves in excess of the 20% policy level. Staff intends to return to Council with the 2016-17 Supplemental Budget in June 2016 to make recommendations for the use of these one-time funds. The Budget Review Team and Department Heads will be prepared to respond to any questions the Council may have regarding this report at the February 16, 2016 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact Assistant City Manager and Interim Finance & Information Technology Director Derek Johnson at 805-781-7112 or Budget Manager Xenia Bradford at 805-781-7132. A-14 13.b Packet Pg. 262 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Section B FINANCIAL CONDITION SUMMARIES 13.b Packet Pg. 263 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE SUMMARY BY FUND Actual Original Revised 2014-15 Budget Projection Variance % Change GOVERNMENTAL FUNDS General Fund 64,615,545 56,003,937 56,972,747 968,810 2% Local Revenue Measure Fund 7,183,054 7,447,054 264,000 4% Special Revenue Funds 4,143,837 3,289,398 3,529,684 240,286 7% Capital Project Funds 9,535,851 1,803,700 12,298,347 10,494,647 582% Total Governmental Funds 78,295,233 68,280,089 80,247,832 11,967,743 18% ENTERPRISE FUNDS & AGENCY FUNDS Water Fund 20,612,010 19,228,050 19,442,016 213,966 1% Sewer Fund 18,126,613 16,856,345 17,106,345 250,000 1% Parking Fund 2,455,826 8,105,000 7,132,300 (972,700)-12% Transit Fund 3,866,226 3,622,110 4,855,059 1,232,949 34% Boyson Ranch Convervation Fund 1,800 1,800 Whale Rock Reservoir Fund 918,668 1,737,388 1,737,388 Total Enterprise Funds 45,979,343 49,550,693 50,274,908 724,215 1% TOTAL $124,274,576 $117,830,782 $130,522,740 12,691,958 11% 2015-16 B-1 13.b Packet Pg. 264 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change GENERAL FUND Tax & Franchise Revenues Sales & use tax General 15,272,683 17,247,004 17,537,004 290,000 2% Local Revenue Measure 7,136,297 Public safety (Proposition 172)409,590 419,631 419,631 Property tax 9,631,890 9,726,500 9,726,500 Property tax in lieu of VLF 6,805,742 4,041,808 4,041,808 Transient occupancy tax 5,211,207 6,843,873 6,843,873 Utility users tax 3,849,341 5,505,703 5,505,703 Franchise fees 2,790,077 1,540,364 1,540,364 Business tax certificates 2,203,208 2,338,753 2,338,753 Real property transfer tax 298,191 183,600 183,600 Total Tax & Franchise Revenues 53,608,226 47,847,236 48,137,236 290,000 1% Fines & Forfeitures Vehicle code fines 154,385 120,000 120,000 Other fines & forfeitures 29,935 36,000 36,000 Total Fines & Forfeitures 184,320 156,000 156,000 Investment and Property Revenues Investment earnings 179,252 120,300 120,300 Rents & concessions 199,391 161,400 161,400 Total Investment & Property 378,643 281,700 281,700 Subventions & Grants Motor vehicle in-lieu 18,663 Homeowners & other in-lieu taxes 73,867 74,000 74,000 Other in-lieu taxes 18,327 22,000 22,000 SB 90 reimbursements 363,513 Police training (POST)37,706 40,000 40,000 Mutual aid reimbursements 440,021 COPS grant AB3229 106,230 100,000 100,000 Zone 9 reimbursements 48,907 85,000 85,000 Other state & federal grants 171,138 2,000 2,000 Total Subventions & Grants 1,278,372 323,000 323,000 Service Charges Police Services Accident reports 2,953 3,000 3,000 Collision investigation 7,627 10,000 10,000 Alarm permits and false alarm fees 142,806 80,000 80,000 DUI cost recovery 31,258 20,000 20,000 Tow release fee 13,366 12,000 12,000 Booking fee recovery Tobacco permit fees 22,562 20,000 20,000 Administrative citations 157,421 115,000 115,000 2015-16 B-2 13.b Packet Pg. 265 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change GENERAL FUND Parking citations 78,175 80,000 80,000 Other police services 171,178 110,300 110,300 Total Police Services 627,345 450,300 450,300 Fire Services Cal Poly fire services 270,684 273,391 273,391 Medical emergency recovery 130,001 172,500 172,500 Fire safety/haz mat permits 134,284 130,000 130,000 Multi-dwelling unit inspections 194,361 194,000 194,000 CUPA fees 101,256 97,000 97,000 Other fire services 23,779 8,000 8,000 Total Fire Services 854,364 874,891 874,891 Development Review Planning & zoning fees 327,608 250,610 597,920 347,310 139% Building Permits 1,728,584 1,290,242 1,548,242 258,000 20% Construction plan check & inspection 827,022 534,422 534,422 Infrastructure plan check & inspections 741,571 474,000 474,000 Encroachment permits 138,917 126,953 126,953 Fire plan check & inspections 449,476 276,500 350,000 73,500 27% Credit Card Fees (83,151)(24,374)(24,374) Other Development Fees 1,143,936 882,557 882,557 Rental Inspection Fees 146,150 146,150 Total Development Review 5,273,963 3,957,060 4,635,870 678,810 17% Parks & Recreation Adult athletic fees 133,467 122,400 122,400 Youth athletic fees 32,826 33,700 33,700 Skate park fees 2,000 2,000 Instruction fees 91,046 91,000 91,000 Special event fees 86,272 92,700 92,700 Rental & use fees 204,736 161,500 161,500 Children services 743,534 600,000 600,000 Teens & seniors 5,754 1,500 1,500 Aquatics 242,675 246,700 246,700 Golf 328,383 291,700 291,700 Other recreation revenues 21,334 3,000 3,000 Total Parks & Recreation 1,890,027 1,646,200 1,646,200 General Government Business license 361,981 371,000 371,000 Sales of publications 4,751 2,500 2,500 Other service charges 19,287 30,000 30,000 Total General Government 386,019 412,550 412,550 Total Service Charges 9,031,718 7,341,001 8,019,811 678,810 9% Other Revenues Insurance refunds 14,207 20,000 20,000 Other revenues 120,059 35,000 35,000 Total Other Revenues 134,266 55,000 55,000 Total General Fund $64,615,545 $56,003,937 $56,972,747 $968,810 2% 2015-16 B-3 13.b Packet Pg. 266 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change LOCAL REVENUE MEASURE FUND Measure Y 7,133,054 7,397,054 264,000 4% Investment & Property Revenues 50,000 50,000 Total Local Revenue Measure Fund 7,183,054 7,447,054 264,000 4% SPECIAL REVENUE FUNDS Downtown Business Improvement District Fund Investment & Property Revenues Service Charges 221,864 214,000 214,000 Other Revenues Total Downtown BID Fund 221,864 214,000 214,000 Tourism Business Improvement District Fund Investment & Property Revenues 1,268 1,100 1,100 Other Revenues Service Charges 1,363,743 1,368,775 1,368,775 Total Tourism BID Fund 1,365,011 1,369,875 1,369,875 Community Development Block Grant Fund Investment & Property Revenues 351 Subventions & Grants 1,012,873 405,515 645,440 239,925 59% Other Revenues 18,950 1,032,174 405,515 645,440 239,925 1 Gas Tax Fund Subventions & Grants 1,188,599 965,000 965,000 Transportation Development Act Fund Subventions & Grants 54,808 41,100 41,100 Law Enforcement Grant Fund Investment & Property Revenues 790 Subventions & Grants 195,411 251,808 250,169 (1,639)-1% Service Charges 2,356 2,000 2,000 Total Law Enforcement Grant Fund 198,557 251,808 252,169 361 Public Art Contributions Fund Investment & Property Revenues 1,619 2,100 2,100 Service Charges 40,000 40,000 Other Revenues 81,205 Total Public Art Contributions Fund 82,824 42,100 42,100 Total Special Revenue Funds $4,143,837 $3,289,398 $3,529,684 240,286 7% 2015-16 B-4 13.b Packet Pg. 267 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change CAPITAL PROJECT FUNDS General Purpose CIP Subventions & Grants State of California T SHA/USHA 129,982 391,251 391,251 Safe routes to school grant SLTPP/STP grant 660,000 (660,000)-100% STP/SHA - RRTC 7,091,181 9,687,043 9,687,043 Other state grants Federal Government Highway & bridge rehabilitation & replacement (HBRR)145,539 76,610 76,610 Transportation enhancement (TEA) Other federal grants 35,083 211,488 211,488 Service Charges Zone 9 reimbursements 105,102 444,255 444,255 Other Revenues Contributions Other Revenue 13,463 156,000 501,000 345,000 Total General Purpose CIP 7,520,350 816,000 11,311,647 10,495,647 1286% Parkland Development Fund Investment & Property Revenues 2,910 3,000 3,000 Subventions & Grants Service Charges Park in-lieu fees 250,997 Dwelling unit charge 22,650 Other Revenues Total Parkland Development Fund 276,557 3,000 3,000 Transportation Impact Fee Fund Investment & Property Revenues 48,584 3,000 3,000 Subventions & Grants 350,172 Service Charges Impact Fees 907,365 75,000 75,000 Other Revenues 55,000 Total Transportation Impact Fee Fund 1,361,121 78,000 78,000 Fleet Replacement Fund Investment & Property Revenues 10,887 6,000 6,000 Other Revenues Sale of surplus property 6,755 10,000 10,000 Total Fleet Replacement Fund 17,642 16,000 16,000 2015-16 B-5 13.b Packet Pg. 268 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change CAPITAL PROJECT FUNDS Open Space Protection Fund Investment & Property Revenues 2,289 Subventions & Grants 600,000 600,000 Service Charges Total Open Space Protection Fund 2,289 600,000 600,000 Airport Area Impact Fee Fund Investment & Property Revenues 4,344 1,000 1,000 Service Charges Total Airport Area Impact Fee Fund 4,344 1,000 1,000 Affordable Housing Fund Investment & Property Revenues 12,881 8,000 8,000 Subventions & Grants 69,528 Service Charges 269,626 Total Affordable Housing Fund 352,035 8,000 8,000 Los Osos Valley Road Sub-Area Fee Fund Investment & Property Revenues 1,513 1,700 1,700 Service Charges Total LOVR Sub-Area Fee Fund 1,513 1,700 1,700 Information Technology Replacement Fund Investment & Property Revenues 1,500 1,500 Subventions & Grants 255,000 255,000 Service Charges Total IT Replacement Fund 256,500 256,500 Major Facility Replacement Fund Investment & Property Revenues 500 500 Service Charges 22,000 22,000 Total IT Replacement Fund 22,500 22,500 Infrastructure Investment Fund Investment & Property Revenues 1,000 1,000 Total IT Replacement Fund 1,000 1,000 Total Capital Project Funds $9,535,851 $1,803,700 $12,298,347 10,494,647 582% TOTAL-GOVERNMENTAL FUNDS $78,295,233 $68,280,089 $80,247,832 11,967,743 18% 2015-16 B-6 13.b Packet Pg. 269 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2014-15 Budget Projection Variance % Change ENTERPRISE & AGENCY FUNDS Water Fund Investment & Property Revenues 181,253 50,000 50,000 Impact Fees 2,471,502 1,300,000 1,500,000 200,000 15% Service Charges 17,918,415 17,846,350 17,859,009 12,659 0% Other Revenues 40,840 31,700 33,007 1,307 4% Total Water Fund 20,612,010 19,228,050 19,442,016 213,966 1% Sewer Fund Investment & Property Revenues 94,067 50,000 50,000 Impact Fees 852,232 350,000 600,000 250,000 71% Service Charges 17,138,586 16,419,145 16,439,145 20,000 0% Other Revenues 41,728 37,200 17,200 (20,000)-54% Total Sewer Fund 18,126,613 16,856,345 17,106,345 250,000 1% Parking Fund Fines & Forfeitures 368,482 663,200 663,200 Investment & Property Revenues 26,206 28,300 28,100 (200)-1% Service Charges 2,061,138 6,932,900 6,441,000 (491,900)-7% Lease Revenue 480,500 Other Revenues 100 (100) Total Parking Fund 2,455,826 8,105,000 7,132,300 (972,700)-12% Transit Fund Investment & Property Revenues 7,612 5,800 5,800 Subventions & Grants 3,208,715 2,918,114 4,151,063 1,232,949 42% Service Charges 649,414 693,596 693,596 Other Revenues 485 4,600 4,600 Total Transit Fund 3,866,226 3,622,110 4,855,059 1,232,949 34% Boyson Ranch Conservation Fund Investment & Property Revenues 1,953 1,800 1,800 Subventions & Grants Service Charges Total Bosyson Ranch Fund 1,953 1,800 1,800 Whale Rock Commission Investment & Property Revenues 6,361 1,000 1,000 Service Charges 911,564 1,734,888 1,734,888 Other Revenues 743 1,500 1,500 Total Whale Rock Commission Fund 918,668 1,737,388 1,737,388 Total Enterprise & Agency Funds $45,981,296 $49,550,693 $50,273,108 $722,415 1% TOTAL - ALL FUNDS $124,276,529 $117,830,782 $130,520,940 $12,690,158 11% 2015-16 B-7 13.b Packet Pg. 270 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED Actual Original Revised 2014-15 Budget Budget Revenues Tax Revenues 53,608,226 54,980,290 55,534,290 554,000 1% Fines and Forfeitures 718,502 819,200 819,200 Investment and Property Revenues 818,194 1,156,500 496,500 (660,000)-57% Subventions and Grants 14,067,285 5,759,537 18,514,170 12,754,633 221% Service Charges Governmental Funds 12,070,050 9,060,776 9,741,586 680,810 8% Enterprise Funds 43,380,927 44,022,591 43,512,680 (509,911)-1% Trust and Agency Revenues 918,668 1,736,388 1,736,388 Other Revenues 525,905 296,300 307,547 11,247 4% Total Revenues 126,107,757 117,831,582 130,662,361 12,830,779 11% Expenditures Operating Programs Public Safety 24,056,077 25,609,805 25,825,336 215,531 0.8% Public Utilities 18,927,190 21,992,932 22,454,118 461,186 2% Transportation 7,584,354 7,931,400 8,694,385 762,985 10% Leisure, Cultural & Social Services 7,012,890 7,503,320 7,697,733 194,413 2.59% Community Development 8,344,973 9,805,311 11,005,459 1,200,148 12% General Government 14,620,691 17,149,050 17,710,587 561,537 3% Total Operating Programs 80,546,175 89,991,818 93,387,618 3,395,800 4% Capital Improvement Plan Projects 32,190,790 22,552,267 66,630,261 44,077,994 195.4% Debt Service 8,105,865 7,615,525 7,615,525 Total Expenditures 120,842,830 120,159,610 167,633,404 47,473,794 40% Other Sources (Uses) Adjustment to Working Capial (33,346) Operating Transfers In 11,785,569 9,319,299 9,342,237 22,938 0% Operating Transfers Out (13,272,217)(9,319,299)(9,319,299) Proceeds from Debt Financings 850,775 688,500 688,500 100% Expenditure Savings 1,452,966 1,452,966 Total Other Sources (Uses)(669,219)1,452,966 2,164,404 711,438 49% Revenues and Other Sources Over (Under) Expenditures and Other Uses 4,595,708 (875,062)(34,806,639)(33,931,577) Fund Balance/Working Capital, Beginning of Year 96,640,396 80,351,809 111,271,179 30,919,370 38% Fund Balance/Working Capital, End of Year Prior Year Restatement 502,205 Reserved for Debt Service 2,043,222 2,082,625 2,043,222 (39,403)-2% Unreserved 99,695,087 77,394,122 74,421,318 (2,972,804)-4% Total Fund Balance/Working Capital 101,236,104$ 79,476,747$ 76,464,540$ (3,012,207)-4% 2015-16 Variance % change 13.b Packet Pg. 271 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED Actual Original Revised 2014-15 Budget Budget Revenues Tax Revenues 53,608,226 54,980,290 55,534,290 554,000 1% Fines and Forfeitures 184,320 156,000 156,000 Investment and Property Revenues 480,098 1,020,600 360,600 (660,000)-65% From Other Governments 10,858,570 2,841,423 14,363,107 11,521,684 405% Service Charges 12,070,050 9,060,776 9,741,586 680,810 8% Other Revenues 277,224 221,000 230,940 9,940 4% Total Revenues 77,478,488 68,280,089 80,386,523 12,106,434 4 Expenditures Operating Programs Public Safety 24,056,077 25,609,805 25,825,336 215,531 1% Transportation 3,063,353 2,348,249 2,929,827 581,578 25% Leisure, Cultural & Social Services 7,012,890 7,503,320 7,697,733 194,413 3% Community Development 8,344,973 9,805,311 11,005,459 1,200,148 12% General Government 13,910,865 17,141,550 17,703,087 561,537 3% Total Operating Programs 56,388,158 62,408,235 65,161,442 2,753,207 4% Reimbursed Expenditures (3,451,208)(4,008,992)(4,008,992) Total Operating Expenditures 52,936,950 58,399,243 61,152,450 2,753,207 5% Capital Improvement Plan Projects 22,106,245 10,739,506 34,997,572 24,258,066 226% Debt Service 3,550,964 3,014,674 3,014,674 Total Expenditures 78,594,159 72,153,423 99,164,696 27,011,273 37% Other Sources (Uses) Operating Transfers In 11,406,317 9,319,299 9,342,237 22,938 0% Operating Transfers Out (13,272,217)(8,406,619)(8,406,619) Proceeds from Debt Financings 850,775 Expenditure Savings 1,452,966 1,452,966 Total Other Sources (Uses)(1,015,125)2,365,646 2,388,584 22,938 1% Revenues and Other Sources Over (Under) Expenditures and Other Uses (2,130,796)(1,507,688)(16,389,589)(14,881,901)987% Fund Balance, Beginning of Year 42,264,254 29,977,907 49,861,121 19,883,214 66% Prior Year Restatement 502,205 42,766,459 29,977,907 49,861,121 19,883,214 66% Fund Balance, End of Year Reserved for Debt Service 2,043,222 2,082,625 2,043,222 (39,403)-2% Unreserved 38,592,441 26,387,594 31,428,310 Total Fund Balance 40,635,663$ 28,470,219$ 33,471,532$ 5,001,313 18% 2015-16 Variance % change 13.b Packet Pg. 272 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED Actual Original Revised 2014-15 Budget Budget Revenues Fines and Forfeitures 534,182 663,200 663,200 Investment and Property Revenues 338,096 135,900 135,900 From Other Governments 3,208,715 2,918,114 4,151,063 1,232,949 42% Service Charges 43,380,927 44,022,591 43,512,680 (509,911)-1% Other Revenues 248,681 75,300 76,607 1,307 2% Trust and Agency Revenues 918,668 1,736,388 1,736,388 Total Revenues 48,629,269 49,551,493 50,275,838 724,345 1% Expenditures Operating Programs Public Utilities 18,927,190 21,992,932 22,454,118 461,186 2% Transportation 4,521,001 5,583,151 5,764,558 181,407 3% Leisure, Cultural & Social Services General Government 4,161,034 4,016,492 4,016,492 Total Operating Programs 27,609,225 31,592,575 32,235,168 642,593 2% Capital Improvement Plan Projects 10,084,545 11,812,761 31,632,689 19,819,928 168% Debt Service 4,554,901 4,600,851 4,600,851 Total Expenditures 42,248,671 48,006,187 68,468,708 20,462,521 42.6% Other Sources (Uses) Adjustment to Working Capial (33,346) Operating Transfers In 379,252 Proceeds from Debt Financings Operating Transfers Out (62,700)(912,680)(912,680) Other Sources (Uses) Total Other Sources (Uses)283,206 (912,680)(912,680) Revenues and Other Sources Over (Under) Expenditures and Other Uses 6,663,804 632,626 (19,105,550)(19,738,176)-3120% Working Capital, Beginning of Year 53,873,937 50,373,902 61,410,058 11,036,156 22% Working Capital, End of Year 60,537,741$ 51,006,528$ 42,304,508$ (8,702,020)-17% 2015-16 Variance % change 13.b Packet Pg. 273 CHANGES IN FINANCIAL POSITION GENERAL FUND Without Local Measure as of 2015-16 Fiscal Year Actual Original Revised 2014-15 Budget Budget Revenues Tax Revenues 53,608,226 47,847,236 48,137,236 290,000 1% Fines and Forfeitures 184,320 156,000 156,000 Investment and Property Revenues 378,644 281,700 281,700 Subventions and Grants 1,278,374 323,000 335,200 12,200 4% Service Charges 9,031,717 7,341,001 8,019,811 678,810 9% Other Revenues 134,264 55,000 64,940 9,940 18% Total Revenues 64,615,545 56,003,937 56,994,887 990,950 2% Total Resources Available in 2013-14 Expenditures Operating Programs Public Safety 24,056,077 24,593,256 24,860,653.0 267,397 1% Transportation 3,063,353 2,348,249 2,929,827 581,578 25% Leisure, Cultural & Social Services 7,012,890 7,304,072 7,498,485 194,413 3% Community Development 7,842,676 8,373,568 9,326,531 952,963 11% General Government 13,910,865 17,141,550 17,125,209 (16,341)0% Total Program Expenditures 55,885,861 59,760,695 61,740,705 1,980,010 3% Reimbursed Expenditures (3,451,208)(4,008,992)(4,008,992) Total Expenditures 52,434,653 55,751,703 57,731,713 1,980,010 4% Other Sources (Uses) Operating Transfers In 1,504,842 2,318,155 2,341,093 22,938 1% Proceeds from Debt Issuance Operating Transfers Out (10,657,737)(6,964,744)(6,964,744) Expenditure Savings 1,452,966 1,452,966 Total Other Sources (Uses)(9,152,895)(3,193,623)(3,170,685)22,938 -1% Revenues and Other Sources Over (Under) Expenditures and Other Uses *3,027,997 (2,941,389)(3,907,511)(966,122)33% Transfer to Local Revenue Measure Fund (2,197,000)(2,426,279) Fund Balance, Beginning of Year 20,317,179 18,289,882 23,847,381 5,557,499 30% Prior Year Restatement 502,205 Fund Balance, End of Year sub-total 23,847,381$ 13,151,493$ 17,513,591$ 4,362,098 33% Fund Balance Components: Assigned Reserves 8,411,555 1,652,000 720,365 (931,635)-56% Policy Reserve Level @ 20%:10,486,931 10,389,271 10,389,271 Amount Over (Under) Policy Reserve:4,948,895 1,110,222 6,403,955 5,293,733 Expenditures exceed revenues due to one-time expenses funded from reserve balance. 2015-16 Variance % change 13.b Packet Pg. 274 CHANGES IN FINANCIAL POSITION LOCAL REVENUE MEASURE SUB-FUND Actual Original Revised 2014-15 Budget Budget Revenues Tax Revenues 7,133,054 7,397,054 264,000 4% Investment & Property Revenue 50,000 50,000 - Total Revenues - 7,183,054 7,447,054 264,000 4% Expenditures - Operating Programs - Public Safety 764,741 769,741 5,000 1% Transportation 1,285,559 460,496 (825,063) -64% Leisure, Cultural & Social Services 199,248 199,248 - Community Development 5,000 247,185 242,185 4844% General Government 577,878 577,878 100% Capital Improvement Plan Projects 7,072,850 7,072,850 - Total Program Expenditures - 9,327,398 9,327,398 - Other Sources (Uses)- Operating Transfers Out - - Total Other Sources (Uses)- - - - Revenues and Other Sources Over (Under)- Expenditures and Other Uses *(2,144,344) (1,880,344) 264,000 -12% Fund Balance, Beginning of Year 2,197,000 2,426,279 229,279 10% Fund Balance, End of Year sub-total - 52,656 545,935 493,279 937% 2015-16 Variance % change 13.b Packet Pg. 275 CHANGES IN FINANCIAL POSITION INSURANCE BENEFIT Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 601 Service Charges Total Revenues 601 Expenditures Operating Programs General Government 1,124,000 2,124,000 1,000,000 Capital Improvement Plan Projects Total Expenditures 1,124,000 2,124,000 (1,000,000)-89% Other Sources (Uses) Operating Transfer In 342,700 2,124,000 2,124,000 Operating Transfer Out Total Other Sources (Uses)342,700 2,124,000 2,124,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses 343,301 1,000,000 (1,000,000)-100% Fund Balance, Beginning of Year 342,700 343,301 601 0% Fund Balance, End of Year 343,301$ 1,000,000$ 343,301$ ($999,399) 2015-16 Variance % change 13.b Packet Pg. 276 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues Service Charges Assessments 221,864 214,000 214,000 Other Service Charges Total Service Charges 221,864 214,000 214,000 Other Revenues Total Revenues 221,864 214,000 214,000 Expenditures Operating Programs Community Development 221,864 214,000 214,000 Capital Improvement Plan Projects Total Expenditures 221,864 214,000 214,000 Other Sources (Uses) Operating Transfer In Operating Transfer Out Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year 1,122 1,122 1,122 Prior Year Restatement Fund Balance, End of Year 1,122$ 1,122$ 1,122$ Variance % change 2015-16 13.b Packet Pg. 277 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 1,268 1,100 1,100 Service Charges 1,363,475 1,368,775 1,368,775 Total Revenues 1,364,743 1,369,875 1,369,875 Expenditures Operating Programs Community Development 1,252,847 1,342,499 1,405,274 62,775 5% Capital Improvement Plan Projects Total Expenditures 1,252,847 1,342,499 1,405,274 62,775 5% Other Sources (Uses) Operating Transfer In Operating Transfer Out (27,270)(27,375)(27,375) Total Other Sources (Uses)(27,270)(27,375)(27,375) Revenues and Other Sources Over (Under) Expenditures and Other Uses 84,626 (62,774)(62,774)-100% Fund Balance, Beginning of Year 248,402 145,796 333,028 187,232 128% Prior Year Restatement Fund Balance, End of Year 333,028$ 145,796$ 270,254$ 124,458 85% 2015-16 Variance % change 13.b Packet Pg. 278 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Actual Original Revised 2014-15 Budget Budget Revenues From Other Governments CDBG Allocation 214,791 405,515 698,267 292,752 72% Other Revenues Total Revenues 214,791 405,515 698,267 292,752 72% Expenditures Operating Programs Community Development 280,433 448,002 448,002 General Government Total Operating Programs 280,433 448,002 448,002 Capital Improvement Plan Projects 6,960 105,000 397,752 292,752 279% Debt Service Total Expenditures 287,393 553,002 845,754 292,752 53% Other Sources (Uses) Operating Transfer In 72,602 147,487 147,487 Total Other Sources (uses)72,602 147,487 147,487 Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year (83) 90 (83)(173) Fund Balance, End of Year (83)$ 90$ (83)$ (173)$ Variance % change 2015-16 13.b Packet Pg. 279 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Original Revised 2014-15 Budget Budget Revenues From Other Governments - Gasoline Tax 1,188,599 965,000 965,000 Total Revenues 1,188,599 965,000 965,000 Other Sources (Uses) Operating Transfers Out (1,188,599)(965,000)(965,000) Total Other Sources (Uses)(1,188,599)(965,000)(965,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year Variance % change 2015-16 13.b Packet Pg. 280 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT (TDA) FUND Actual Original Revised 2014-15 Budget Budget Revenues Subventions and Grants 54,808 41,100 41,100 Total Revenues 54,808 41,100 41,100 Other Sources (Uses) Operating Transfers Out (54,808)(41,100)(41,100) Total Other Sources (Uses)(54,808)(41,100)(41,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year Variance % change 2015-16 13.b Packet Pg. 281 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANTS FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 790 Subventions and Grants 195,411 251,808 312,893 61,085 24% Service Charges 2,356 2,000 2,000 100% Total Revenues 198,557 251,808 314,893 63,085 Expenditures Operating Programs Public Safety 251,808 194,942 (56,866)-23% Capital Improvement Plan Projects 208,816 60,776 60,776 100% Total Expenditures 208,816 251,808 255,718 3,910 2% Revenues and Other Sources Over (Under) Expenditures and Other Uses (10,259)59,175 59,175 100% Fund Balance, Beginning of Year 27,145 28,639 16,886 (11,753)-41% Fund Balance, End of Year 16,886$ 28,639$ 76,061$ 47,422$ 166% Variance % change 2015-16 13.b Packet Pg. 282 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 1,619 2,100 2,100 Service Charges In-lieu fees 40,000 40,000 Other Revenues 81,205 Total Revenues 82,824 42,100 42,100 Expenditures Operating Programs Leisure, Cultural & Social Services Capital Improvement Plan Projects 213,183 36,400 354,420 318,020 Total Expenditures 213,183 36,400 354,420 318,020 Other Sources (Uses) Operating Transfer In 77,100 36,400 36,400 Operating Transfer Out Total Other Sources (Uses)77,100 36,400 36,400 Revenues and Other Sources Over (Under) Expenditures and Other Uses (53,259)42,100 (275,920)(318,020)-755% Fund Balance, Beginning of Year 416,103 142,430 362,844 220,414 Fund Balance, End of Year 362,844$ 184,530$ 86,924$ (97,606)$ -53% Variance 2015-16 change 13.b Packet Pg. 283 CHANGES IN FINANCIAL POSITION GENERAL PURPOSE CIP Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 13,463 660,000 (660,000)-100% Subventions and Grants 7,506,887 11,155,647 11,155,647 100% Service Charges Other Revenues 156,000 156,000 Total Revenues 7,520,350 816,000 11,311,647 10,495,647 1286% Expenditures Capital Improvement Plan Projects 12,109,275 1,053,000 15,735,993 14,682,903 1394% Total Expenditures 12,109,275 1,053,000 15,735,993 14,682,993 1394% Other Sources (Uses) Operating Transfers In 3,196,963 281,733 281,733 Operating Transfers Out (300,863)(36,400)(36,400) Other Sources (Uses) Sale of Surplus Property Total Other Sources (Uses)2,896,100 245,333 245,333 Revenues and Other Sources Over (Under) Expenditures and Other Uses (1,692,825)8,333 (4,179,013)(4,187,346) Fund Balance, Beginning of Year 6,045,091 4,352,266 4,352,266 Prior Year Restatement Fund Balance, End of Year 4,352,266$ 8,333$ 173,253$ 164,920$ 1979% 2015-16 Variance % change 13.b Packet Pg. 284 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 3,110 3,000 3,000 Subventions and Grants Service Charges Park In-Lieu Fees 250,997 Dwelling Unit Fees 22,650 Other Revenues Total Revenues 276,757 3,000 3,000 Expenditures Capital Improvement Plan Projects 822,521 250,000 254,269 4,269 Total Expenditures 822,521 250,000 254,269 4,269 Revenues and Other Sources Over (Under) Expenditures and Other Uses (545,764)(247,000)(251,269)(4,269) Fund Balance, Beginning of Year 1,166,322 468,732 620,558 151,826 Fund Balance, End of Year 620,558$ 221,732$ 369,289$ 147,557$ 67% changeVariance 2015-16 13.b Packet Pg. 285 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 48,584 3,000 3,000 Subventions and Grants 350,172 Impact Fees 907,365 75,000 75,000 Other Revenues 55,000 Total Revenues 1,361,121 78,000 78,000 Expenditures Capital Improvement Plan Projects 3,536,078 298,000 6,699,474 6,401,474 2148% Total Expenditures 3,536,078 298,000 6,699,474 6,401,474 2148% Other Sources (Uses) Proceeds from Debt Financing 7,823,972 Operating Transfer In 49,388 Operating Transfer Out (140,165)(320,000)(320,000) Total Other Sources (Uses)7,733,195 (320,000)(320,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses (2,174,957)(540,000)(6,941,474)(6,401,474) Fund Balance, Beginning of Year 3,641,701 1,014,265 8,879,649 7,865,384 775% Prior Year Restatement Fund Balance, End of Year 8,879,649$ 474,265$ 1,938,175$ 1,463,910$ 309% 2015-16 Variance % change 13.b Packet Pg. 286 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 10,887 6,000 6,000 Service Charges Other Revenues Sale of Surplus Property 6,755 10,000 10,000 Total Revenues 17,642 16,000 16,000 Expenditures Capital Improvement Plan Projects 1,692,180 521,800 1,102,722 580,922 111% Total Expenditures 1,692,180 521,800 1,102,722 580,922 111% Other Sources (Uses) Proceeds from Debt Financing 548,351 Operating Transfers Out Operating Transfers In 532,600 384,100 384,100 Total Other Sources (Uses)1,080,951 384,100 384,100 Revenues and Other Sources Over (Under) Expenditures and Other Uses (593,587)(121,700)(702,622)(580,922)477% Fund Balance, Beginning of Year 2,622,634 1,446,484 2,029,047 582,563 40% Fund Balance, End of Year 2,029,047$ 1,324,784$ 1,326,425$ 1,641$ 0% change 2015-16 Variance 13.b Packet Pg. 287 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 2,289 Subventions and Grants 600,000 600,000 Service Charges Other Revenues Total Revenues 2,289 600,000 600,000 Expenditures Capital Improvement Plan Projects 123,258 600,000 996,724 396,724 66% Total Expenditures 123,258 600,000 996,724 396,724 66% Other Sources (Uses) Operating Transfer In 275,000 Operating Transfer Out (35,000) Total Other Sources (Uses)240,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses 119,031 (396,724)(396,724) Fund Balance, Beginning of Year 411,592 116,706 530,623 413,917 355% Fund Balance, End of Year 530,623$ 116,706$ 133,899$ 17,193$ 15% 2015-16 changeVariance 13.b Packet Pg. 288 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 4,344 1,000 1,000 Service Charges Total Revenues 4,344 1,000 1,000 Expenditures Capital Improvement Plan Projects 23,487 50,000 56,669 6,669 Total Expenditures 23,487 50,000 56,669 6,669 Revenues and Other Sources Over (Under) Expenditures and Other Uses (19,143)(49,000)(55,669)(6,669) Fund Balance, Beginning of Year 956,641 927,486 937,498 10,012 1% Fund Balance, End of Year 937,498$ 878,486$ 881,829$ 3,343$ 0% 2015-16 changeVariance 13.b Packet Pg. 289 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 12,881 8,000 8,000 Subventions and Grants 69,528 Service Charges 269,626 Total Revenues 352,035 8,000 8,000 Expenditures Capital Improvement Plan Projects 680,000 398,362 398,362 Total Expenditures 680,000 398,362 398,362 Transfer Out (17,000)(52,000)(52,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses (344,965)(44,000)(442,362)(398,362) Fund Balance, Beginning of Year 2,946,847 2,560,548 2,601,882 41,334 2% Fund Balance, End of Year 2,601,882$ 2,516,548$ 2,159,520$ (357,028)-14% 2015-16 Variance % change 13.b Packet Pg. 290 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 1,513 1,700 1,700 Service Charges Total Revenues 1,513 1,700 1,700 Expenditures Capital Improvement Plan Projects Total Expenditures Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,513 1,700 1,700 Fund Balance, Beginning of Year 145,210 146,910 146,723 (187)0% Fund Balance, End of Year 146,723$ 148,610$ 148,423$ (187)$ 0% changeVariance 2015-16 13.b Packet Pg. 291 CHANGES IN FINANCIAL POSITION INFORMATION TECHNOLOGY REPLACEMENT Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 1,500 1,500 Subventions and Grants 255,000 255,000 Service Charges Total Revenues 256,500 256,500 Expenditures Capital Improvement Plan Projects 1,832,229 334,706 966,261 631,555 189% Total Expenditures 1,832,229 334,706 966,261 631,555 189% Other Sources (Uses) Operating Transfer In 991,100 617,000 617,000 Debt Proceeds 688,500 688,500 Total Sources (Uses)991,100 617,000 1,305,500 688,500 112% Revenues and Other Sources Over (Under) Expenditures and Other Uses (841,129)538,794 595,739 56,945 11% Fund Balance, Beginning of Year $681,283 $901 ($159,846)(160,747)$ -17841% Fund Balance, End of Year ($159,846)539,695$ 435,893$ (103,802)$ 2015-16 Variance % change 13.b Packet Pg. 292 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMENT Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 500 500 Service Charges 22,000 22,000 Total Revenues 22,500 22,500 Expenditures Capital Improvement Plan Projects 858,258 167,750 651,300 483,550 288% Total Expenditures 858,258 167,750 651,300 483,550 288% Other Sources (Uses) Operating Transfer In 753,058 145,750 145,750 Operating Transfer Out 753,058 145,750 145,750 Revenues and Other Sources Over (Under) Expenditures and Other Uses (105,200)500 (483,050)(483,550)-96710% Fund Balance, Beginning of Year 593,843 5,591 488,636 483,045 8640% Fund Balance, End of Year 488,636$ 6,091$ 5,586$ (505)$ Variance % change 2015-16 13.b Packet Pg. 293 CHANGES IN FINANCIAL POSITION INFRASTRUCTURE INVESTMENT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 105 1,000 1,000 Service Charges Total Revenues 105 1,000 1,000 Expenditures Operating Programs Capital Improvement Projects 250,000 250,000 Total Expenditures 250,000 250,000 Other Sources (Uses) Operating Transfer In 60,000 250,000 250,000 Debt Proceeds Total Sources (Uses)60,000 250,000 250,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses 60,105 1,000 1,000 Fund Balance, Beginning of Year 60,000$ 60,105$ 105$ 0% Fund Balance, End of Year 60,105$ 61,000$ 61,105$ 105$ 2015-16 Variance % change 13.b Packet Pg. 294 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Original Revised 2014-15 Budget Budget Expenditures Debt Service 2012/2001 Refunded Revenue Bonds 385,800 392,100 392,100 2004/1994 Refunding Revenue Bonds 294,872 2005/1996 Refunding Revenue Bonds 507,139 467,851 467,851 2006 Lease Revenue Bonds 460,374 460,374 460,374 2009 Lease Revenue Bonds 838,859 829,998 829,998 Fire Engine/Truck Lease Purchase 128,920 127,492 127,492 Capital Lease / Fire Truck 2014 116,702 116,702 Capital Lease (I.T. Equipment)198,751 198,751 2014 Lease Revenue Bond/ LOVR 421,406 421,406 Insurance Retrospective Charges PERS Side Fund Payment 935,000 Fleet Debt Service 2015-17 Total Expenditures 3,550,964 3,014,674 3,014,674 Other Sources (Uses) Operating Transfers In 3,550,964 3,014,674 3,014,674 Operating Transfers Out (850,775) Proceeds from Debt Financing 850,775 Total Other Sources (Uses)3,550,964 3,014,674 3,014,674 Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year 2,043,222 2,082,625 2,043,222 (39,403)-2% Fund Balance, End of Year Reserved for Debt Service 2,043,222 2,082,625 2,043,222 (39,403)-2% Total Fund Balance 2,043,222$ 2,082,625$ 2,043,222$ (39,403)$ -2% 2015-16 Variance % change 13.b Packet Pg. 295 CHANGES IN FINANCIAL POSITION WATER FUND Actual Original Revised 2014-15 Budget Budget Revenues Service Charges Water Sales Water Service Charges 16,776,500 16,715,250 16,645,250 (70,000)0% Sales to Other Agencies 754,617 845,000 845,000 Development Impact Fees 2,471,502 1,300,000 1,500,000 200,000 15% Connection Charges and Meter Sales 73,844 46,000 58,659 12,659 28% Late Charges and Credit Card Fees 63,464 70,000 70,000 Account Set-up Fee 91,914 105,800 105,800 AB 939 Reimbursement 137,736 134,300 134,300 Total Service Charges 20,369,577 19,146,350 19,359,009 212,659 1% Other Revenues 77,152 31,700 33,007 1,307 4% Subventions and Grants Investment and Property Revenues 165,281 50,000 50,000 Total Revenues 20,612,010 19,228,050 19,442,016 213,966 1% Expenditures Operating Programs Public Utilities 11,796,208 14,000,908 14,183,409 182,501 1% General Government 1,876,830 1,328,061 1,328,061 Total Operating Programs 13,673,038 15,328,969 15,511,470 182,501 1% Capital Improvement Plan Projects 865,454 2,812,485 6,887,463 4,074,978 145% Debt Service 2,195,124 2,192,461 2,192,461 Total Expenditures 16,733,616 20,333,915 24,591,394 4,257,479 21% Other Sources (Uses) Other Sources (Uses) Proceeds from Debt Financing Projected MOA Adjustments Operating Transfer In Operating Transfers Out (20,800)(469,607)(469,607) Expenditure Savings Other Sources (Uses) Total Other Sources (Uses)(20,800)(469,607)(469,607) Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,857,594 (1,575,472)(5,601,730)(4,043,513)257% Working Capital, Beginning of Year 17,999,995 15,690,077 21,857,589 6,167,512 39% Working Capital, End of Year 21,857,589$ 14,114,605$ 16,255,859$ 2,123,999$ 15% 2015-16 Variance % change 13.b Packet Pg. 296 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Original Revised 2014-15 Budget Budget Revenues Service Charges Customer Sales Sewer Service Charges 15,985,950 15,282,545 15,212,545 (70,000)-0.5% Sales to Cal Poly 849,207 915,300 915,300 Development Impact Fees 852,232 350,000 600,000 250,000 71.4% Account Set-Up Fees 91,914 105,800 105,800 Late Charges and credit card fees 63,705 70,000 70,000 100.0% Industrial User Charges 75,033 69,500 69,500 Connection Charges and Meter Sales 72,777 46,000 46,000 Total Service Charges 17,990,818 16,769,145 17,019,145 250,000 1.5% Other Revenues 41,728 37,200 37,200 Investment and Property Revenues 94,067 50,000 50,000 Total Revenues 18,126,613 16,856,345 17,106,345 250,000 1.5% Expenditures Operating Programs Public Utilities 6,342,875 6,947,909 7,220,331 272,422 4% General Government 1,291,008 1,576,026 1,576,026 Total Operating Programs 7,633,883 8,523,935 8,796,357 272,422 3% Capital Improvement Plan Projects 9,024,394 8,268,945 19,997,912 11,728,967 142% Debt Service 1,406,026 1,437,573 1,437,573 Total Expenditures 18,064,303 18,230,453 30,231,842 12,001,389 66% Other Sources (Uses) Cashflow adjustment for working capital Proceeds from Debt Financing Projected MOA Adjustments Operating Transfer In 309,514 Operating Transfers Out (22,200)(443,073)(443,073) Other Sources (Uses) Total Other Sources (Uses)287,314 (443,073)(443,073) Revenues and Other Sources Over (Under) Expenditures and Other Uses 349,624 (1,817,181)(13,568,570)(11,751,389)647% Working Capital, Beginning of Year 26,700,798 26,744,961 27,050,422 305,461 1% Working Capital, End of Year 27,050,422$ 24,927,780$ 13,481,852$ (11,445,928)$ -46% 2015-16 Variance % change 13.b Packet Pg. 297 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 5,932 1,000 1,000 Service Charges Member Agency Contributions O & M 600,300 737,171 737,171 Member Agency Contributions CIP 546,717 546,717 Water Distribution Charges 310,712 450,000 450,000 Other Service Charges Total Service Charges & Interest 916,944 1,734,888 1,734,888 Other Revenues 1,724 1,500 1,500 Total Revenues 918,668 1,736,388 1,736,388 Expenditures Operating Programs Public Utilities 788,107 1,044,115 1,050,378 6,263 1% General Government 98,229 115,989 115,989 Total Operating Programs 886,336 1,160,104 1,166,367 6,263 1% Capital Improvement Plan Projects 40,069 146,717 715,466 568,749 Total Expenditures 926,405 1,306,821 1,881,833 575,012 44% Other Sources (Uses) Transfer out (12,900) Other Sources (Uses) Adjust for working capital Total Other Sources (Uses)(12,900) Revenues and Other Sources Over (Under) Expenditures and Other Uses (20,637)429,567 (145,445)(575,012) Working Capital, Beginning of Year 1,174,007 511,230 1,153,370 642,140 126% Working Capital, End of Year 1,153,370$ 940,797$ 1,007,925$ 67,128$ 7% 2015-16 Variance % change 13.b Packet Pg. 298 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Original Revised 2014-15 Budget Budget Revenues Service Charges Parking Meter Collections Lots 516,750 174,200 174,200 Streets 1,383,927 1,523,800 1,523,800 Parking Structure Collections 863,077 1,044,200 1,044,200 Long-Term Parking Revenues 527,681 430,600 430,600 Lease Revenues 237,822 480,500 480,500 Parking In-Lieu Fees 852,825 3,760,100 2,787,530 (972,570)-26% Other Service Charges (10,964)100 100 Total Service Charges 4,371,118 7,413,500 6,440,930 (972,570)-13% Investment and Property Revenues 69,183 28,300 28,300 Fines and Forfeitures 534,182 663,200 663,200 Other Revenues 194 Total Revenues 4,974,677 8,105,000 7,132,430 (972,570)-12% Expenditures Operating Programs Transportation 1,749,024 2,203,195 2,328,330 125,135 6% General Government 604,225 711,587 711,587 Total Operating Programs 2,353,249 2,914,782 3,039,917 125,135 4% Capital Improvement Plan Projects 111,097 280,313 1,952,970 1,672,657 Debt Service 953,751 970,817 970,817 Total Expenditures 3,418,097 4,165,912 5,963,704 1,797,792 43% Other Sources (Uses) Cashflow adjustment for working capital Expenditure Savings Operating Transfer In 69,738 Operating Transfer Out (5,400) Proceeds from Debt Financing Other Sources (Uses)(82,653)38,071 38,071 Potential MOA Adjustments Total Other Sources (Uses)(18,315)38,071 38,071 Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,538,265 3,977,159 1,206,797 (2,770,362)-70% Working Capital, Beginning of Year 6,898,292 6,302,177 8,436,557 2,134,380 34% Working Capital, End of Year 8,436,557$ 10,279,336$ 9,643,354$ (635,982)$ -6% 2015-16 changeVariance 13.b Packet Pg. 299 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenues 7,612 5,800 5,800 From Other Governments TDA Revenues (LTF)1,837,504 1,326,287 1,326,287 TDA Revenues (STA)177,037 187,947 253,284 65,337 35% Other Grants 81,150 15,000 15,000 FTA Grants 1,113,024 1,388,880 2,556,492 1,167,612 84% Service Charges 649,414 693,596 693,596 Other Revenues 485 4,600 4,600 Total Revenues 3,866,226 3,622,110 4,855,059 1,232,949 34% Expenditures Operating Programs Transportation 2,771,977 3,379,956 3,436,228 56,272 2% General Government 290,742 277,329 277,329 Total Operating Programs 3,062,719 3,657,285 3,713,557 56,272 2% Capital Improvement Plan Projects 43,531 304,301 2,078,878 1,774,577 583% Total Expenditures 3,106,250 3,961,586 5,792,435 1,830,849 46% Other Sources (Uses) Cashflow adjustment for working capital (33,346) Potential MOA Adjustments Operating Transfer Out (1,400) Other Sources (15,931) Expenditure Savings Total Other Sources (Uses)(1,400) Revenues and Other Sources Over (Under) Expenditures and Other Uses 758,576 (339,476)(937,376)(597,900)176% Working Capital, Beginning of Year 1,015,873 1,042,352 2,825,195 1,782,843 171% Prior Year Restatement 1,050,746 Working Capital, End of Year 2,825,195$ 702,876$ 1,887,819$ 1,184,943$ 169% 2015-16 Variance % change 13.b Packet Pg. 300 CHANGES IN FINANCIAL POSITION BOYSEN RANCH CONSERVATION FUND Actual Original Revised 2014-15 Budget Budget Revenues Investment and Property Revenue 1,953 1,800 1,800 Service Charges Total Revenues 1,953 1,800 1,800 Expenditures Operating Programs 7,500 7,500 Total Expenditures 7,500 7,500 Other Sources (Uses) Operating Transfer In Debt Proceeds Total Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,953 (5,700)(5,700) Fund Balance, Beginning of Year $84,972 83,105$ 86,925$ 3,820$ 5% Fund Balance, End of Year 86,925$ 77,405$ 81,225$ 3,820$ 5% 2015-16 Variance % change 13.b Packet Pg. 301 Item Amount Pending Approval Total GENERAL FUND Mid-Year Revenue forecast adjustments 968,810 Chevron reimbursement check 1,300 Donation for bench program 4,222 JAG funds for furniture purchase 10,200 ABC Grant reimbursement 2,000 City Clerk training reimbursement 500 OES Engine reimbursement 3,768 Reindeer Run donation 150 22,140 968,810 990,950 LOCAL REVENUE MEASURE SUB-FUND Mid-Year Revenue forecast adjustment 264,000 264,000 264,000 COMMUNITY DEVELOPMENT BLOCK GRANT FUND Grant CIP Carryfoward 292,752 292,752 292,752 LAW ENFORCEMENT GRANT FUND Adjustment to reflect actual grant received (99,522) (99,522) (99,522) GENERAL PURPOSE CIP FUND Carryover grant revenue 10,698,647 Remove budget to reflect grant received (RRST-Taft/Pepper)(203,000) 10,495,647 10,495,647 WATER FUND Receipt of revenue for meters 1,307 Receipt of fees for new development meters 12,659 Mid-Year revenue forecast adjustment 200,000 13,966 200,000 213,966 SEWER FUND Mid-Year revenue forecast adjustment 250,000 250,000 250,000 PARKING FUND Correction of Chinatown budget (double counted)(972,570) (972,570) (972,570) TRANSIT FUND 2014-15 Carryover Grant Revenue 1,232,950 1,232,950 1,232,950 SUMMARY OF REVENUE BUDGET ADJUSTMENTS B-39 13.b Packet Pg. 302 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Item Amount Pending Approval Total Correction to Golf Salaries SOPC 35,945 2014-15 Encumbrance Rollover 1,516,180 Development Services, City Manager allocation of 2014-15 over-realized development services revenue 384,112 Use of PEG funds for Chamber projectior and broadcast room 22,938 Use of donation for bench program 4,222 Use of JAG funds for furntiture purchase 10,200 Use of ABC Grant revenue for reimbursement of ABC expenses 2,000 Training expense reimbursement from So Cal City Clerk's Association 500 Use of OES Engine reimbursement revenue for replacement parts 3,768 Use of Reindeer Run donation for special event supplies 150 1,944,070 35,945 1,980,015 2014-15 CIP Carryforward 292,752 292,752 292,752 2014-15 Encumbrance Rollover 62,776 62,776 62,776 Recognize 2014-15 balance of OTS State grant expenditures and revenue 39,714 Reduce 2015-16 OTS State grant budget to reflect actual grant expenditures and revenue 99,522 Receive and appropriate Cal OES Grant for purchase of SWAT Robot 60,169 2014-15 CIP Carryforward 607 Move budget for impound fees revenue that is earmaked for restricted use by State from the General Fund 2,000 202,012 202,012 2014-15 CIP Carryforward 142,620 2014-15 Encumbrance Rollover 98,900 Council Approved Appropriation from Fund Balance for Box Art Painting and Public Art Maintenance 76,500 318,020 318,020 2014-15 CIP Carryforward 6,506,393 2014-15 Encumbrance Rollover 8,379,510 Remove budget to reflect actual grant received for Railroad Safety Trail-Taft to Pepper (203,000) 14,682,903 14,682,903 2014-15 CIP Carryforward 4,269 4,269 4,269 2014-15 CIP Carryforward 3,679,397 2014-15 Encumbrance Rollover 3,125,507 Reduce project budget for Railroad Safety Trail-Taft/Pepper to reflect actual grant funds received (403,430) 6,401,474 6,401,474 2014-15 CIP Carryfoward 137,960 2014-15 Encumbrance Rollover 442,963 580,923 580,923 2014-15 CIP Carryforward 380,524 2014-15 Encumbrance Rollover 16,200 396,724 396,724 2014-15 Encumbrance Rollover 6,669 6,669 6,669 PARKLAND DEVELOPMENT FUND OPEN SPACE PROTECTION AIRPORT AREA IMPACT FEE FUND SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS GENERAL PURPOSE CIP FUND TRANSPORTATION IMPACT FEE FUND FLEET REPLACEMENT FUND GENERAL FUND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND LAW ENFORCEMENT GRANT FUND PUBLIC ART FUND TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND B-40 13.b Packet Pg. 303 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Item Amount Pending Approval Total SUMMARY OF EXPENDITURE BUDGET ADJUSTMENTS Appropriate budget for 1st Time Homebuyer's Program 398,362 398,362 398,362 2014-15 CIP Carryfoward 544,055 2014-15 Encumbrance Rollover 87,500 631,555 631,555 2014-15 CIP Carryforward 424,893 2014-15 Encumbrance Rollover 58,658 483,551 483,551 PERS unfunded liability payment, from fund balance 750,000 OPEB unfunded liability payment, from fund balance 250,000 1,000,000 1,000,000 2014-15 CIP Carryforward 2,605,972 2014-15 Encumbrance Rollover 1,637,540 Use of revenue from sale of meters for new meter purchases 1,307 Use of collected fees for new development meters 12,659 4,257,478 4,257,478 2014-15 CIP Carryforward 11,129,163 2014-15 Encumbrance Rollover 872,226 12,001,389 12,001,389 2014-15 CIP Carryfoward 472,209 2014-15 Encumbrance Rollover 102,805 575,014 575,014 2014-15 CIP Carryforward 1,672,657 2014-15 Encumbrance Carryover 125,135 1,797,792 1,797,792 2014-15 CIP Carryforward 1,774,577 2014-15 Encumrbance Rollover 56,272 1,830,849 1,830,849 TRANSIT FUND MAJOR FACILITY REPLACEMENT FUND AFFORDABLE HOUSING FUND WHALE ROCK FUND INSURANCE BENEFIT FUND WATER FUND PARKING FUND SEWER FUND INFORMATION TECHNOLOGY REPLACEMENT FUND B-41 13.b Packet Pg. 304 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2014-15 Budget Budget Amendments General Fund Operating Transfers In Gas Tax Fund 1,188,599 965,000 965,000 TDA Fund 54,808 41,100 41,100 Tourism BID Fund 27,270 27,375 27,375 Affordable Housing Fund 17,000 52,000 52,000 Transportation Impact Fee Fund 140,165 320,000 320,000 Fleet Replacement Fund Open Space Protection Fund 35,000 Utility Billing Control Sewer Enterprise Fund Parking Enterprise Fund PEG City of SLO 14,000 22,938 CIP Grant 42,000 Mayor Task Force/Joint Recreational 2,462 Total operating transfers in 1,521,304 1,405,475 1,428,413 Operating Transfers Out Insurance Benefit Fund (280,000)(2,124,000)(2,124,000) Community Development Block Grant (72,602) (147,487) (147,487) General Purpose CIP (2,433,900) (281,733)(281,733) Public Art Private Sector Fund (29,900) Fleet Replacement Fund (532,600) (384,100) (384,100) Debt Service Fund (5,312,309) (3,014,674) (3,014,674) Information Technology Fund (991,100) (617,000) (617,000) Major Facility Replacement Fund (551,400) (145,750) (147,750) Transportation Impact Fee Fund (49,388) Infrastructure Investment Fund (60,000) (250,000)(250,000) Open Space Protection Fund (275,000) Parking Enterprise Fund (69,738) Total operating transfers out (10,657,937) (6,964,744)(6,966,744) Total Operating Transfers (9,136,633)(5,559,269)(5,538,331) Community Development Block Grant Fund Operating Transfer In 72,602 Park Hotel Fund General Fund 147,487 147,487 72,602 147,487 147,487 Gas Tax Fund Operating Transfer Out (1,188,599) General Fund (1,188,599)0 0 Transportation Development Act Fund Operating Transfer Out (54,808) General Fund (54,808)0 0 Tourism Business Improvement District Fund Operating Transfer Out (27,270) General Fund (27,270)0 0 2015-16 B-42 13.b Packet Pg. 305 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2014-15 Budget Budget Amendments 2015-16 Information Technology Replacement Fund Operating Transfer In General Fund 991,100 617,000 617,000 Public Access Channel Fund Total Operating Transfers 991,100 617,000 617,000 Sewer Enterprise Fund Operating Transfer In 309,514 Wastewater Dev Impact Fee Fund Total Transfers In 0 Operating Transfer Out Insurance Benefit Fund (22,200) General Fund Total Operating Transfers 287,314 0 0 Wastewater Development Impact Fee Fund Operating Transfer Out (309,514) Sewer Fund (309,514)0 0 Parking Enterprise Fund Operating Transfer In 69,738 General Fund Operating Transfer Out Insurance Benefit Fund (5,400) General Fund Total Operating Transfers 64,338 0 0 Water Enterprise Fund Operating Transfer In Utility Billing Control Operating Transfer Out Insurance Benefit Fund (20,800) Total Operating Transfers (20,800)0 0 Transit Enterprise Fund Operating Transfer Out (1,400) Insurance Benefit Fund (1,400)0 0 B-43 13.b Packet Pg. 306 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2014-15 Budget Budget Amendments 2015-16 Insurance Benefit Fund Operating Transfer In General Fund 280,000 2,124,000 2,124,000 Water Enterprise Fund 20,800 Sewer Enterprise Fund 22,200 Parking Enterprise Fund 5,400 Transit Enterprise Fund 1,400 Whale Rock Commission 12,900 Total Operating Transfers 342,700 2,124,000 2,124,000 Whale Rock Commission Operating Transfer Out (12,900) Insurance Benefit Fund (12,900)0 0 General Purpose CIP Operating Transfer In 3,153,525 General Fund 281,733 281,733 Major Facility Replacement Debt Service Total Transfers In 281,733 281,733 Operating Transfer Out Major Facility Replacement (201,658) Public Art Fund (47,200)(36,400)(36,400) Total Transfers Out (248,858)(36,400)(36,400) Total Operating Transfers 2,904,667 245,333 245,333 Transportation Impact Fee Fund Operating Transfers In 49,388 General Fund 49,388 (1,405,475)(1,428,413)(22,938) Operating Transfer Out (140,165) General Fund (140,165)0 0 Open Space Protection Fund Operating Transfers In 275,000 General Fund 275,000 0 0 Operating Transfer Out General Fund (35,000) Total operating transfers (35,000) Fleet Replacement Fund Operating Transfers In 532,600 General Fund 532,600 384,100 384,100 Operating Transfers Out General Fund Total Operating Transfers 532,600 B-44 13.b Packet Pg. 307 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Revised City Council/ CM Approved Budget 2014-15 Budget Budget Amendments 2015-16 Debt Service Fund Operating Transfer In 5,312,309 General Fund 3,014,674 3,014,674 Operating Transfer Out General Fund Total operating transfers 5,312,309 3,014,674 3,014,674 Major Facility Replacement Fund Operating Transfer In General Fund 551,400 Capital Outlay Fund 201,658 145,750 145,750 Total Transfers In 753,058 145,750 145,750 Operating Transfer Out Capital Outlay Fund Total Operating Transfers 1,506,116 145,750 145,750 Affordable Housing Fund Operating Transfer Out (17,000) General Fund (17,000)0 0 CIP Grant Fund Operating Transfer Out General Fund (42,000) Total Operating Transfers (42,000)0 0 Mayor Task Force/Joint Recreational Operating Transfer Out (2,462) Total Operating Transfers (2,462)0 0 Public Art Fund Operating Transfer In General Fund 29,900 Capital Outlay Fund 47,200 36,400 36,400 Public Art Fund Total 77,100 36,400 36,400 Public Access Channel Fund (PEG) Operating Transfer Out (14,000) General Fund (14,000)0 0 Infrastructure Investment Fund Operating Transfer In General Fund 60,000 Total Operating Transfers 60,000 NET OPERATING TRANSFERS $1,472,683 $1,009,725 $1,176,413 B-45 13.b Packet Pg. 308 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) INTERFUND TRANSACTIONS REIMBURSEMENT TRANSFERS Actual Original Revised City Council/ CM Approved 2014-15 Budget Budget Amendments General Fund Enterprise and Agency Funds Water 1,167,004 1,328,061 1,328,061 Sewer 1,291,008 1,576,026 1,576,026 Parking 604,225 711,587 711,587 Transit 290,742 277,329 277,329 Whale Rock Commission 98,229 115,989 115,989 Total Enterprise and Agency Funds $3,451,208 $4,008,992 $4,008,992 2015-16 B-46 13.b Packet Pg. 309 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Section C MAJOR CITY GOALS AND OTHER IMPORTANT OBJECTIVES 13.b Packet Pg. 310 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO OVERVIEW The overall goal of the City’s Financial Plan is to link goals and objectives with the resources required to meet and complete them. This section of the 2015-16 Mid-Year Report provides an update of progress to date on the City’s adopted Major City Goals (MCG) and Other Important Objectives (OIO). The Update is presented in a tabular format with narrative adjacent to each of the Action Plan Tasks associated with the MCG and OIOs for the 2015-17 Financial Plan. In six-month’s time significant progress has been made in the City’s Major Goals and Other Important Objectives. 2015-17 MCG ACTION HIGHLIGHTS TO DATE Open Space Preservation 25% Complete The Natural Resources Roundtable has held its first meeting. Council adopted the City’s first ever Open Space Maintenance Plan on December 15, 2015. Ranger services is fully staffed resulting in an average of 210 person hours a week (all seven days) of staff in Open Space performing resource preservation, maintenance, and patrol activities. Several large hazardous eucalyptus trees were removed from the Bowden Ranch as part of the City’s annual open space and creeks winterization efforts. Multi-Modal Transportation 15% Complete Council received the annual traffic safety report on January 5, 2016 which showed a drop in injury and collisions for the reporting period. Multiple bicycle facility improvements have been completed including the reversal of stop signs at Morro and Pacific and green bike lanes in multiple locations. Grant funding for the Phillips Lane Bike Bridge in the amount of $3.2 million has been obtained. The City is now one of only 23 cities in North America to have a Gold designation from the League of American Bicyclists. Promotions and communications in transit are being planned to be available in multiple languages. A few notable changes to completion dates related to this action plan include: the acceleration to March 2017 of the replacement of lighted Higuera Street crosswalk to coincide with the same project on Marsh Street; Highland and Chorro street bike improvements delayed due to project complexity; Marsh Street Bridge replacement delayed construction start due to State requirements regarding historic preservation; delay of the Bicycle Transportation Plan due to staffing changes and the award of the Phillips Street grant requiring immediate action by staff. Major City Goals (MCG) •Open Space Preservation •Multi-Modal Transportation •Housing Other Important Objectives (OIO) •Neighborhood Wellness •Laguna Lake Restoration •Fiscal Sustainability and Responsibility •Downtown C-1 13.b Packet Pg. 311 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing 33% Complete As of November 2015, three BEGIN down payment assistance loans, totaling $121,490, had been distributed for the purchase of affordable units at Moylan Terrace. 2016 CDBG recommendations were approved by the City’s Human Relations Commission and they include a recommendation to fund a new 46 unit affordable housing project at 3680 Broad Street as well as the Maxine Lewis Memorial Shelter. Multiple affordable housing loans have been approved including the Iron Works project at $920,000, as well as 860 on the Wye in the amount of $302,029, and $95,814 for a veterans’ transitional housing unit on Sydney Street. A notable change includes the revision to the timing of the expedited building permit associated with Homeless Services Center to May 2016 which reflects the applicant’s need for resubmittal. 2015-17 OIO ACTION HIGHLIGHTS TO DATE Neighborhood Wellness 25% Complete This other important objective has seen completion of a wide variety of tasks. In July 2015 the City and Cal Poly University Police (UPD) entered into a Memorandum of Understanding resulting in UPD issuing citations for municipal violations in the one-mile radius around Cal Poly. The Collaborative Communication Plan was created with community partners and implementation has begun. The Neighborhood Match Grant program has seen high levels of excitement and neighborhood participation. Finally, silt removal projects were completed for 2016 in preparation for El Nino. A few notable changes to action tasks completion include a revision to the completion of the hiring of rental housing inspectors as that process has taken longer than anticipated however inspections continue to be planned to start in April 2016. Laguna Lake Restoration 25% Trail and trailhead improvements at this natural preserve have been approved as part of the adopted Open Space Maintenance Plan. The ADA trail continues move forward in the design phase. Council has considered the award of the contract to start the design/engineering, environmental permitting and financial evaluation of this project on January 19, 2016. Fiscal Sustainability and Responsibility 20% Work with the Revenue Enhancement Oversight Commission (REOC) is ongoing with reports provided at year-end 2015. The Government Finance Officers Association (GFOA) is working with the Finance and Information Technology Department to identify opportunities for increased efficiency and delivery of services. In June 2015 Council adopted a budget policy providing policy direction for use of one-time resources. As a result of multiple staffing transitions there are a few notable changes to the completion dates for this other important objective. A draft public dashboard for performance measures will be available in spring 2016. Further analysis is being conducted prior to recommendations returning to Council in June 2016 regarding reductions in liability and/or workers compensation claims. The comprehensive analysis of City costs and fees is tentatively scheduled for a May 2016 presentation to Council. C-2 13.b Packet Pg. 312 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Downtown The Downtown Concept Plan and Mission Plaza Assessment projects have both commenced with consultants selected for each and the Creative Vision Team established. Chinatown and Garden Street Terraces are both under construction. Bicycle officers and members of the Community Action Team continue to provide significant assistance regarding public safety in the downtown. Significant ongoing work continues in the Downtown on a regular basis from street sweeping to graffiti removal. CONCLUSION The next review of the 215-17 Major City Goals and Other Important Objectives will occur with the 2016-17 Budget Supplement in June 2016. Individual items requiring policy direction and/or Council approval will continue to be brought to Council for consideration and direction. C-3 13.b Packet Pg. 313 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Open Space Preservation: 2015-17 Action Plan (25% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 1 Pursue voluntary land conservation opportunities in the Cuesta Canyon area of the City’s Greenbelt by working cooperatively with the property owners to acquire and protect portions of The Miossi Brothers La Cuesta Ranch and the Ahearn Family Ranch. An opportunity also exists to expand the Irish Hills Natural Reserve by collaborating with non-profit land trust partners. Ongoing Staff is presently pursuing three separate land conservation opportunities, as identified in the task. 2 Facilitate open space dedications anticipated as components of land use entitlements to protect the Chevron Tank Farm open space and portions of the South Hills and Righetti Hill. Ongoing In coordination with City Attorney’s Office, staff has reached preliminary agreement on the terms of the conservation easement for the open space component of the Chevron Tank Farm property; however, it is not anticipated to record until after the remediation / restoration phase is complete. The South Hills and Righetti Hill dedications are nascent as required conditions of approval for Tract 2428 and 3063, respectively. 3 Undertake and complete the Natural Resources Manager’s Roundtable: The 20th Anniversary Proceedings of the San Luis Obispo Greenbelt and pursue any follow up items that arise from this process. 01/17 The Natural Resources Roundtable is expected to begin meeting in late January 2016. 4 Prepare a long-term vision plan, Saving Special Places III: Towards a Sustainable Greenbelt, pertaining to long-term strategic open space acquisition priorities, maintenance and enhancement projects, staffing and equipment, and funding strategies in order to provide for the long-term protection and stewardship of natural resource conservation values and passive recreational amenities appurtenant to City open space properties in existence now and that are planned in the future. 07/17 This plan effort will follow the completion of the Natural Resources Roundtable. 5 Update Conservation Guidelines for Open Space Lands within the City of San Luis Obispo to address minor inconsistencies with other policy documents. 07/17 This update effort will follow the completion of the Natural Resources Roundtable. 6 Ongoing annual monitoring of all City-owned open space properties, open space easements, and conservation easements. Ongoing Underway and ongoing. 7 Present to the City Council a Maintenance Plan for the City’s Open Space for adoption. 12/15 Complete. Council adopted the 2015 Open Space Maintenance Plan on December 15, 2015. C-4 13.b Packet Pg. 314 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Open Space Preservation: 2015-17 Action Plan (25% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 8 Consistent with adopted conservation and open space plans, complete Trailhead Enhancements at signature open space properties including installation of trash cans, mutt mitt stations, trail head signage, informational kiosks, trail way finding signage, and where possible improved parking for cars and bikes, as well as improved public transportation access. 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. 9 Complete priority projects previously identified in conservation and open space plans including: 06/17 See below. 10 Bishop Peak emergency vehicle access and trailhead improvements; 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. 11 Johnson Ranch trailhead parking and safety improvements; 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. 12 Reservoir Canyon trailhead parking enhancements, trail signs, and new loop trail; 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. New loop trail is under construction. 13 Cerro San Luis trail re-routing and erosion control, and completion of the “M” trail; 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. Trail re-routing on the approach to Cerro San Luis and the M trail is complete. 14 Terrace Hill sign and kiosk improvements, trail closure/erosion control, and new fencing. 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. 15 Continue to construct additional trails at Froom Ranch consistent with the approved Irish Hills Conservation Plan completing BLM license area, expanding existing network, and working on a new and improve access point to the trail network. 06/17 Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. Trail work into BLM license (MOU) area is complete. 16 Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan (see Other Important Council Objective). Ongoing Contract award for design/engineering, permitting, and finance components of the project is complete, work to begin January 2016. C-5 13.b Packet Pg. 315 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Open Space Preservation: 2015-17 Action Plan (25% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 17 Continue to address daily maintenance project needs in the City’s Open Space to address wear and tear, natural events, vandalism and other activities which create repair needs in the open space. Ongoing Ongoing. 18 Complete prioritized deferred maintenance projects identified in Open Space Maintenance Plan. Ongoing Implementation to begin January 2016 following adoption of Open Space Maintenance Plan. 19 Continue patrol of the City’s open space areas and creek corridors. Ongoing In preparation for Winter 2015-16 staff undertook an extensive patrol of the City’s open space and creek corridors. Given the new Ranger staff resources citations for illegal encampments and inappropriate activities increased dramatically. Clean up of the creeks was ongoing in association with trash from illegal camping. 20 Continue to coordinate 70 trail work days (4,000 hours) a year utilizing volunteers including continuing the partnership with the Central Coast Concerned Mountain Bikers on various open space improvements and maintenance. Ongoing From July 1 to December 31, 2015 1.5 miles of trail was constructed in the following locations: Cerro San Luis, Irish Hills, Stenner Springs and Reservoir Canyon 21 Continue Ranger Led Hikes in the City’s open space on a monthly basis and upon request. Ongoing The past six months included hikes at: Stenner Springs, Reservoir Canyon, Johnson Ranch, Islay Hill, Cerro San Luis and Bishop Peak 22 Continue Ranger Service environmental education program and Junior Ranger Camp to increase open space knowledge and user safety. Increase educational efforts to Cal Poly and Cuesta students with particular focus on safety, appropriate use of open space, appropriate time for use, and all City open space trail opportunities. 06/17 Weekly environmental education lessons are being taught at STAR and Sun & Fun sites. Three different outreach events were held at Cal Poly to educate new students on proper use of open space. Pix On Peaks campaign is very popular. 23 Increase staffing resources in the Ranger Service Program to provide increased open space improvements, maintenance, and patrol. 08/15 Complete. Ranger services is fully staffed and the program presently has on staff one supervising ranger, two full time benefited rangers, four limited benefit rangers and one city worker 5 serving as a ranger. This has resulted in an average of 210 hours a week (all 7 days) of ranger staff in the Open Space performing various duties. C-6 13.b Packet Pg. 316 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Open Space Preservation: 2015-17 Action Plan (25% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 24 Include QR codes for donation links in signage, Develop a marketing and promotion plan for donations to the Community Foundation City of San Luis Obispo Open Space Fund for Maintenance. 06/17 QR codes were used with the City’s public outreach for the draft open space maintenance plan and will continue to be used for added outreach and education. 25 Ongoing community outreach and education in partnership with ECOSLO through the SLO Stewards newsletter. Quarterly Fall 2015 edition of SLO Stewards was published. Winter 2015-16 edition is in design phase. Website access will be added to the City’s website with the Winter 2015-16 edition. 26 Improve creek and flood protection within the City’s natural waterways through Zone 9 projects and coordination and oversight of the Stormwater Management Program. 10/15, 10/16 All of the annual maintenance locations are complete for winter 2015-16. Additional sites continue to be evaluated and addressed in anticipation of El Nino conditions. 27 Ongoing monitoring, remedial action, and enhancement, as needed, of existing mitigation sites. Ongoing Ongoing. 28 Ongoing invasive species treatment and control. Ongoing Ongoing. Integrated Vegetation Management Plan for invasive species control was adopted as technical appendix to the Open Space Maintenance Plan. 29 Complete wetland meadow and riparian planting / invasive species control at Calle Joaquin Agricultural Reserve using awarded Environmental Enhancement and Mitigation Program grant funds. 01/16 6/16 Phase II is underway and activity will continue into the spring to monitor results and implement weed control. 30 Complete project design and specifications for the Fox Hollow reservoir rainwater storage project to enhance summer stream flow in San Luis Obispo Creek. 06/17 Preliminary design concepts have been developed with assistance from the California Conservation Corps. 31 Irish Hills Natural Reserve eucalyptus thinning, mowing, oak grove understory management. Ongoing Ongoing. 32 Bowden Ranch Open Space eucalyptus thinning. Ongoing Ongoing. Several large, hazardous eucalyptus trees were removed with Tree Committee authorization in early December 2015. C-7 13.b Packet Pg. 317 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Open Space Preservation: 2015-17 Action Plan (25% complete) Objective: Protect and maintain open space. # Task Completion Date Revised Status 33 Terrace Hill Open Space mowing and /or grazing. Ongoing Ongoing. 34 Islay Hill Open Space grazing. Ongoing Ongoing. Perimeter fence is complete and cattle were re- introduced to the lower elevation pasture in early December 2015. 35 Cerro San Luis Natural Reserve / Lemon Grove eucalyptus thinning and grazing. Ongoing Ongoing. 36 Johnson Ranch Open Space grazing. Ongoing Ongoing. 37 Bishop Peak Natural Reserve grazing, Felsman Loop Fuel Break maintenance, removal of dead pines near Highland Drive. Ongoing Ongoing. C-8 13.b Packet Pg. 318 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Multimodal Transportation: 2015-17 Action Plan (15% complete) Objective: Prioritize implementation of the Bicycle Transportation Plan and improve & maintain bicycle, pedestrian, & transit facilities. # Task Completion Date Revised Status 1 Continue Transportation Safety & Operations Programs. Ongoing Programs continue with the Safety Report received by Council on January 5, 2016 showing continued drop in injury and total collisions for calendar year 2014; Work on Operations Report continues with Council review Scheduled for October 2016. 2 Continue Bicycle Facilities Improvement Activities. Ongoing Completed the following improvements: reversed stop signs at Morro & Pacific, changed striping configuration at Chorro & Mill, installed green bike lanes at: Higuera/Madonna/South, Higuera & Marsh, Broad & Orcutt) 3 Complete 2015-17 BTP Implementation CIP. 06/17 Design Underway on Chorro & Foothill Bike Box and RRST Class I extension at Laurel and Orcutt. Broad Street Bike Blvd. work scheduled to begin the first Quarter of 2016. 4 Complete environmental review and design of Prado Rd. Bridge at San Luis Creek Widening & Grade Separated Bike/Pedestrian crossing. 06/17 Environmental Work & Design Underway 5 Develop Safe Routes to School & BTP implementation plan for the Foothill: Pacheco / Bishop Peak Elementary School Area. 06/17 Project planning scheduled to begin June 16 6 Complete environmental review and design of Bob Jones Trail Octagon Connection. 06/16 Environmental Underway, Mitigated Negative Declaration Expected 1st Quarter of 2016 7 Complete environmental review and design of Bob Jones Trail Prefumo Creek Connection. 06/17 RFP to be issued in 2nd Quarter 2016 8 Complete Higuera Lighted Crosswalk Replacement. 06/17 3/17 Construction scheduled for February 2016. Project construction date has been moved forward to complete at the same time the Marsh Street crosswalk is upgraded. 9 Complete Highland & Chorro Bike Improvements. 04/16 12/16 Project planning scheduled to begin 1st Quarter of 2016. Depending upon final project design and complexity C-9 13.b Packet Pg. 319 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Multimodal Transportation: 2015-17 Action Plan (15% complete) Objective: Prioritize implementation of the Bicycle Transportation Plan and improve & maintain bicycle, pedestrian, & transit facilities. # Task Completion Date Revised Status construction schedule may have to be moved out. 10 Complete 2015-17 Pedestrian & Bicycle Pathway Maintenance. 06/17 Project scoping occurred in January, for spring or summer construction of path improvements at Islay Park. 11 Complete 2015-17 Downtown Tree & Sidewalk Replacements. 06/17 Priority lists for sidewalk repairs downtown are prepared and the work will be issued through the Job Order Contract. 12 Complete 2015-17 Mission Plaza Railing Upgrades. 06/17 The railing replacement priority list is complete and this work will be bid using the City’s informal process for construction under $45,000. 13 Complete 2015-17 Street Reconstruction & Resurfacing. Ongoing The summer 2016 project is complete, repairing, constructing ramps, and micro surfacing Johnson Ave and Osos St. 14 Complete 2015-17 Sidewalk Ramp Construction. 06/17 The 2015-16 project has been awarded and construction is underway on Los Osos Valley Road and Madonna Road. 15 Begin Construction on Marsh Street Bridge Replacement. 06/16 6/17 Marsh Bridge design close to completion as is environmental study work. Property acquisition, permitting, and the need for a Memorandum of Agreement with the State regarding historic preservation will mean the project will go to construction in 2017 at the earliest. 16 Begin project development work on Prado Rd. Broad to Higuera Class I Path. 08/15 Initial meetings with property owners held. Additional meetings to occur in early 2016. 17 Begin project development work on Phillips Lane Bike Bridge. 08/15 Complete. A site review meeting is complete, technical studies and preliminary plan development are underway. Grant funding in the amount of $3.2 million has been obtained. Project will now be expanded to include construction of the bridge over UPRR at Phillips which requires new design of the project. C-10 13.b Packet Pg. 320 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Multimodal Transportation: 2015-17 Action Plan (15% complete) Objective: Prioritize implementation of the Bicycle Transportation Plan and improve & maintain bicycle, pedestrian, & transit facilities. # Task Completion Date Revised Status 18 Develop a detailed BTP prioritization and implementation plan 08/15 12/16 Initial project listing developed. Project delayed due to a series of issues including: significant time for staff processing of the State ATP grant application package for RRST – Taft to Phillips which was successful in getting the City $3.2 million in grant funding; 2) Principal Transportation Planner (PTP) needing to act as interim Parking Manager due that positions vacancy and then 30 retirement of the PTP. Development scheduled to begin 4th Quarter of 2016. 19 Conduct AB1600 Study & Update Infrastructure Fee Program •Develop RFP & Work Program (February 2016) •Consultant Selection & Work Effort (April 2016) •Public Outreach & Hearings (September 2016) •Final Adoption (December 2016) 12/16 Work has begun on the RFP for consultant services. Traffic upgrade modeling services RFP to Council on February 2, 2016. 20 Update Multimodal Development Standards, Policies, & Programs •Update Zoning Code & Subdivision Regulations (June 2017) •Update Transportation Impact Study Guidelines (July 2015) •Develop Access Mgmt. Policy / Program (October 2015) 06/17 Multimodal Transportation Impact Study Guidelines completed. Policy & Code updates are underway. 21 Continue Bicycle Education Activities & Develop and expand active transportation Education & Advocacy Programs. Ongoing The City received updated status to a “Gold” designation from the League of American Bicyclists – one of only 23 cities in North America. 22 Implement new Transit Marketing Plan Ongoing Staff is reassessing its Limited English Proficiency Plan to assure communications/promotions are also available in multiple languages. The final plan will identify media outlets in different forms, channels/methods with the most successful and cost effectiveness and continue to develop strong resonating marketing campaigns to promote the use of public transit (e.g. Tripper TV commercial, Downtown Access Pass print campaign, Press Releases, various radio ads, public outreach and other grass roots/gorilla marketing campaigns) C-11 13.b Packet Pg. 321 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Multimodal Transportation: 2015-17 Action Plan (15% complete) Objective: Prioritize implementation of the Bicycle Transportation Plan and improve & maintain bicycle, pedestrian, & transit facilities. # Task Completion Date Revised Status 23 Complete Short Range Transit Plan with RTA 06/16 Project is on schedule for an early 2016 completion and 2016 adoption. C-12 13.b Packet Pg. 322 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 1 Monitor the City’s Inclusionary Housing stock for compliance with affordable housing agreements and standards. 06/17 Task not yet initiated. 2 Continue to implement Housing Element programs and housing production goals. Ongoing Staff continues to implement housing element programs and housing production goals including: supporting local solutions to homelessness by funding the Maxine Lewis Memorial Shelter and Prado Day Center, assisting with the development of the Rental Housing Inspection Program, providing funding through the Affordable Housing Fund, and working with developers to modify or revise applications to include affordable housing comparable to market rate units in terms of character and quality. 3 Continue the City’s participation with the Workforce Housing Coalition, San Luis Obispo County Housing Trust Fund and HSOC to identify, evaluate, and implement strategies to increase the production of housing. Ongoing Staff continues to participate with a variety of local organizations such as the San Luis Obispo County Housing Trust Fund, Housing Authority of San Luis Obispo, Homeless Services Oversight Council and Workforce Housing Coalition to encourage and support the production of housing through various financial mechanisms and development opportunities. 4 Increase coordination and representation of City interests in discussions with the County, non-profit organizations and developers to increase the production of housing. City staff will continue to coordinate and support the City’s advocacy efforts consistent with the adopted legislative platform, Major City Goal, and Housing Element. Ongoing City staff continues to coordinate and represent City interests when working with the County and other local organizations regarding the use of grant funding, such as our local Affordable Housing Fund and Federal HOME Investment Partnership and Community Development Block Grant to support affordable housing development. 5 Continue, and increase where feasible, financial support for Housing Programs. Ongoing Staff continues to increase financial support for housing programs through: CDBG awards, Affordable Housing Fund loans and support to the Housing Trust Fund, as well as supporting projects applying for low income housing tax credits. In September, the Housing Authority’s ‘860 on the Wye’ received a tax credit award of $1,509,370. C-13 13.b Packet Pg. 323 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 6 Continue to implement the Inclusionary Housing Program. Ongoing Staff continues to implement the Inclusionary Housing Program through the review of residential and commercial development projects for the inclusion of affordable units or payment of in-lieu fees. Staff continues to create affordable housing agreements with developers to ensure they provide the necessary affordable units to meet their Inclusionary Housing requirement. $479,776 in affordable housing in- lieu fees have been collected since the start of the 2015-16 fiscal year. 7 Implement the City’s BEGIN first-time homebuyer program by providing down payment assistance loans to qualifying households. 06/17 As of November 1st, three BEGIN down payment assistance loans totaling $121,490 have been distributed to qualifying households. All three homebuyers (one very-low, one low and one moderate income household) purchased affordable units in Moylan Terrace. Distribution of the remaining funds $275,000 is anticipated with the final phase of Moylan Terrace in 2016. 8 Update the City’s long-term affordable housing agreement, deed and note templates consistent with industry standard best practices. 06/16 Staff is currently working with Goldfarb and Lipman to prepare these documents. Initial drafts are expected for City review in early 2016. 9 Work with Cal Poly to address the link between enrollment and the expansion of campus housing to reduce pressure on the City’s housing supply (HE Program 10.5). Ongoing City staff is currently working with Cal Poly staff through the Cal Poly Master Plan update. Additional capacity for on-campus student housing remains a top priority. 10 Work with the Housing Authority to develop affordable housing in the Margarita Area Specific Plan. Ongoing Staff has prepared an affordable housing agreement for transfer of Lot 108 to HASLO for development of 27 new affordable housing units for Tract 2353 and 2342. Additional lots for affordable housing development are expected to be dedicated to HASLO as the remaining Tracts move forward in the Margarita Area. 11 Inventory City owned properties suitable for housing and present a proposal to Council on possible opportunities to pursue, if any. 06/16 This effort is nearing completion. Staff has conducted the inventory of City owned property and is preparing a memo C-14 13.b Packet Pg. 324 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status for Council regarding possible affordable housing opportunities. 12 Council consideration of City owned properties and direction as to whether to partner with an affordable housing developer. 10/16 As stated in the previous task status, staff is nearing completion of this inventory. At this time, no properties have been identified as suitable for an affordable housing project; staff will provide further information to Council in the form of a memo. 13 Develop a workforce level of affordability, including incentives, to increase housing options for those making between 121-160% of the Area Median Income (HE Program 2.16). 06/17 Initial background research has been completed. This task will be completed concurrently with the zoning regulations update. 14 Consider scaling development impact fees for residential development based on size, number of bedrooms and room counts (HE Program 6.31). 12/16 This task will be tied into the workforce level of affordability task, which will be updated with the overall zoning regulations update. 15 Consider incentivizing dwelling units to a minimum size of 150 square feet, consistent with the California Building Code, by reduced impact fees and property development standards (HE Program 9.12). 06/17 This task will be tied into the workforce level of affordability task, which will be updated with the overall zoning regulations update. 16 Evaluate and consider adopting subdivision and ordinance changes to support small lot subdivisions and ownership bungalow court development (HE Program 6.30). 08/16 City staff is currently working with a consultant on the update of the Subdivision Regulations. Alternative small lot subdivision options will be evaluated during this process. 17 Eliminate or adjust the one acre minimum lot area for PD overlay zoning (HE Program 6.30). 06/17 Initial research has been completed. Recommendation on PD overlay minimum lot size will be included in the zoning regulations update. 18 Continue to develop incentives to encourage additional housing in the Downtown Core (C-D Zone), including alternatives to calculating residential density, to encourage the development of smaller efficiency units (HE Programs 6.12, 6.13 & 6.27 & LUCE 4.0.28). 06/17 This task will be tied into the workforce level of affordability task, which will be updated with the overall zoning regulations update. C-15 13.b Packet Pg. 325 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 19 Support employer/employee and employer/developer financing programs and partnerships to increase housing opportunities specifically targeted towards the local workforce. Ongoing Staff is currently working with People’s Self Help Housing who is exploring the option of an employer financed housing partnership in the City. Staff will continue to support these programs. 20 Continue to prioritize the use of CDBG funds for affordable housing and homeless services. Ongoing 2016 CDBG preliminary funding recommendations were approved by the Human Relations Commission on December 2nd. These recommendations include funding a new 46 unit affordable housing development at 3680 Broad (Iron Works) and the Maxine Lewis Memorial Shelter. Council will review these recommendations March 2016 21 Continue to use the AHF to support the HTF’s operating expenses to provide below-market financing and technical assistance to affordable housing developers. Ongoing On October 20th, Council allocated $60,000 from the Affordable Housing Fund to support the Housing Trust Fund as previously approved by the 2015-17 Financial Plan. 22 Work with developers to include affordable housing units in projects and to complete housing projects in process. Ongoing Many residential projects currently underway are choosing to develop their inclusionary housing requirements instead of paying the in-lieu fee. 23 Continue to look for new opportunities to use Affordable Housing Fund and grant monies to leverage other funds for affordable housing projects. Ongoing Affordable Housing Fund loans approved during the first quarter were: $920,000 to ‘Iron Works’, a 46-unit affordable housing project proposed at 3680 Broad; $302,029 to ‘860 on the Wye’, a 20-unit affordable complex with units set aside for homeless veterans; and $95,814 to 1379 Sydney which currently provides transitional housing for 5 formerly homeless residents. 2016 CDBG allocations to Iron Works will help leverage low income housing tax credit. 24 Continue to research and apply for Federal, State and private foundation housing loans and grants. Ongoing Staff is currently in the process of applying for the Housing Related Parks grant through the State department of Housing and Community Development. A grant received would be used on park improvements at Sinsheimer Park. Staff is applying for $287,000 in non-competitive funding C-16 13.b Packet Pg. 326 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status which is allocated based on the development of affordable housing. 25 Provide expedited building permit application review for the HSC. 08/15 05/16 – Revised due to incomplete building plan submittals. City staff has completed all reviews within established cycle times and continues to work with applicant team to finalize a building permit for the new Homeless Service Center. The City is currently awaiting the fourth re- submittal of the building plans from the applicant. Permits will be issued once the building plans are found to be compliant with applicable codes. 26 Provide timely building inspections and ongoing support throughout the HSC’s construction process. Ongoing Once a building permit has been obtained, staff will provide support throughout the construction process. 27 Develop a funding agreement between the City and CAPSLO for the HSC that outlines funding amounts, services and expectations for ongoing facility operations. 03/17 A funding agreement has not yet been developed. CAPSLO currently receives both general fund and CDBG funding for the existing homeless center. 28 Continue to support, jointly with other agencies, housing programs, such as Housing First and Rapid Rehousing, for the homeless (HE Program 8.13). Ongoing City staff continues to support programs for the homeless including Housing First, Rapid Rehousing, 50Now, and the Mayors Challenge to End Veteran Homelessness. 29 Fund and use the Infrastructure Investment Fund to facilitate housing projects that are in alignment with the General Plan and City goals. Ongoing The Infrastructure Investment Capital Fund was established in March 2015. Once enough funding has been collected, staff will look for opportunities to use the fund to support affordable housing projects. 30 Develop a Request for Proposals for the Infrastructure Fee Update work plan. 02/16 Task not yet initiated 31 Select a consultant for the Infrastructure/Impact Fee Update 03/16 Task not yet initiated 32 Complete the work effort for the Infrastructure Fee Update (costs, nexus, financing options, right-sizing). 04-07/16 Task not yet initiated C-17 13.b Packet Pg. 327 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Housing: 2015-17 Action Plan (25% complete) Objective: Implement the Housing Element, facilitating workforce, affordable, supportive and transitional housing options, including support for needed infrastructure within the City’s fair share. # Task Completion Date Revised Status 33 Conduct public outreach for Infrastructure Fee Update. 08-09/16 Task not yet initiated 34 Advisory body and Council consideration of infrastructure options. 10-11/16 Task not yet initiated 35 Council adoption of Public Facilities Fee Program. 12/16 Task not yet initiated C-18 13.b Packet Pg. 328 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Neighborhood Wellness: 2015-17 Action Plan 25% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status 1 Neighborhood Wellness/Community Civility Effort Recommendations Ongoing Presented to City Council on December 1, 2015. Council adopted recommendations contained in the report. Staff will return in the spring and fall of 2016 with two additional recommendations regarding keg registration and party registration. 2 Neighborhood Match Grant Program initiation 10/15 Complete.The Neighborhood Match Grant Program was initiated in September, 2015. A total of 8 draft grant applications were received, totaling $22,715 in requested funding. Each draft application was reviewed by the staff, and comments were returned to the applicants. Three final grant applications totaling $7,875 in requested funding were received on January 8, 2016 and are being reviewed by staff for recommendation for award. The HRC is scheduled to review and take action on the recommendations for award at their February meeting. 3 Establish and Implement Collaborative Communication Plan 12/15 Complete. Communication Plan was created with community partners from Cal Poly, Cuesta College and residents. Implementation has begun. The Plan will be updated every six months. 4 Begin Implementation of key measures from Community Civility Committee Ongoing City led actions implementation approved by Council. Key highlights include the Rental Housing Inspection Program, the SLOPD/UPD MOU, Walk and Talks, and the amending of the Unruly Gathering Ordinance. 5 “Adopt a Block” Pilot Program – SCLC 03/16 To be considered by SCLC in Spring 2016. 6 Administrative Citation Appeals Process 3/16 New appeal process for admin cites approved by the City Council 12/15. Interviews for appeal officers underway. C-19 13.b Packet Pg. 329 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Neighborhood Wellness: 2015-17 Action Plan 25% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status 7 Public Safety MOU – Cal Poly University Police and SLOPD 09/15 Completed and in place as of July of 2015. UPD is issuing citations for municipal code violations in the one mile radius from campus borders. The MC code violations include noise, open container, public urination, and unruly gathering. 8 Code Compliance Performance Measures Ongoing 2/17 The 2015-17 Financial Plan identified two key performance indicators for code enforcement (See Page E-155), the “percent of code complaints addressed within published cycle times” and the “percent of inspection requests responded to within next business day.” Staff is working to develop the database, tracking and reporting system needed to accurately report this information. Staff expects to be able to report results of its effort to measure performance in code enforcement by mid-year of the 2016-17 fiscal year. 9 Hire staff to implement rental housing inspection (contingent on program adoption) 02/16 03/16 Two of the four budgeted staff positions have been filled. The Rental Housing Inspector positions require a Meet and Confer, with SLOCEA, which is scheduled in January 2016, prior to opening the recruitment for these two positions. One inspector is anticipated to be hired in March 2016. The other inspector will be hired in July, 2016 10 Begin inspections - prioritize properties with code enforcement violations Spring 2016 On schedule to begin inspections on April 1, 2016, assuming the inspector position is filled in March 2016. 11 On-going inspections and follow up for rental housing violations 04/16 On schedule, assuming the vacant inspector positions are filled in March 2016. 12 Neighborhood pro-active enforcement Ongoing Student Neighborhood Assistance Program (SNAP) employees continue to act as first responders to noise complaints in the neighborhoods and conduct parking enforcement in the neighborhoods in the evening hours. UPD are issuing MC violation citations up to 1 mile off campus. Neighborhood Officer and Neighborhood Services C-20 13.b Packet Pg. 330 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Neighborhood Wellness: 2015-17 Action Plan 25% complete) Objective: Improve neighborhood wellness, work with residents, Cuesta, and Cal Poly; increase public safety, code compliance, and collaborative solutions. # Task Completion Date Revised Status Specialist conducted “Walk and Talks during the Fall Quarter. The two Neighborhood Services Specialists continue to conduct proactive efforts in the neighborhoods. In the last 6 months 36% of the cases opened we for visible storage, and 34% for waste containers. 13 Continue Sidewalk Repairs Ongoing Maintenance crew sidewalk repairs are 50% complete in Pavement Area 8. 14 Continue Stormdrain Cleaning, Silt Removal & Stormdrain Replacements Ongoing Silt removal projects are completed for 2016. Stormdrain replacement project plans are at 90%, with expected construction in Spring/Summer 2016. 15 Complete Neighborhood Street Repair & Sealing 10/16 Maintenance crew crack sealing and road repair work is complete in Pavement Area 8, moving into Pavement Area 1. C-21 13.b Packet Pg. 331 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Laguna Lake Restoration: 2015-17 Action Plan (25% complete) Objective: Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan. # Task Completion Date Revised Status 1 Install new, updated signage at trailheads and along trails •Complete site-specific design (06/16) •Complete requisition signs and attendant materials (09/16) •Installation of updated signs at trailheads and along trails (12/16) 12/16 Standard design and site locations were approved as part of the City of San Luis Obispo 2015 Open Space Maintenance Plan adopted by Council in December 2015. 2 Install accessible paths •Complete Site-specific design and project specifications (12/16) •Issue Request for Proposals (RFP) and Contractor selection (02/17) •Installation of accessible path along lake front (06/17) 06/17 Public Works Engineering staff is designing this facility in- house and the project review team provided feedback on the 50% drawings in December 2015. 3 Install sediment basins •Issue RFP for Design / Engineering consultant (07/15) •Complete Site-specific designs and project specifications (03/16) •Complete Project permitting and environmental document (06/17) 06/17 Following the issuance of the RFP in July 2015, the contract award for design / engineering, environmental permitting, and financial evaluation were considered by City Council at its January 19, 2016 meeting. 4 Begin a dredging project •Issue RFP for Design / Engineering consultant (07/15) •Site-specific designs and project specifications completed (03/16) •Soil samples and water quality tests (03/16) •Evaluate disposal site options and secure land tenure agreements, if necessary (05/16) •Final project design selection with City Council (06/16) •Project permitting and environmental document completed (06/17) 06/17 Following the issuance of the RFP in July 2015, the contract award for design / engineering, environmental permitting, and financial evaluation were considered by City Council at its January 19, 2016 meeting. 5 Evaluate Project Financing Options and Mechanisms •Issue RFP for economic / municipal finance and public opinion research consultant(s) (07/15) •Evaluate financing options and feasibility (02/16) •Conduct study session with City Council on financing options and feasibility (03/16) •Conduct focused public workshops and community outreach (04/16) •Final selection of preferred financing option(s) by City Council and resolution of intention as appropriate and legally required. (06/16) 02/17 06/17 Following the issuance of the RFP in July 2015, the contract award for design / engineering, environmental permitting, and financial evaluation were considered by City Council at its January 19, 2016 meeting. C-22 13.b Packet Pg. 332 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Laguna Lake Restoration: 2015-17 Action Plan (25% complete) Objective: Initiate implementation of the Laguna Lake Natural Reserve Conservation Plan. # Task Completion Date Revised Status •Public Hearing with City Council to create financing mechanism and adopt resolution of formation as appropriate and legally required. (09/16) •Conduct registered voter election by mail, if needed. (3/17) •Proceed with any and all action necessary to fund sediment basin and dredging project implementation in 2017-19. (06/17) C-23 13.b Packet Pg. 333 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Fiscal Sustainability and Responsibility: 2015-17 Action Plan (20% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 1 Establish a performance management and reporting team to identify a set of performance criteria for public reporting based on information the public wants to know and available information already being maintained and reported internally. 07/15 6/2016 A team has been identified and developed draft performance measures for a public dashboard. These measures are currently being reviewed internally and with focus groups. A draft public dashboard will be available to the public in Spring 2016. 2 Gather public opinion to establish a baseline for City performance and to determine what information the public is interested in seeing in a new set of online dashboards. 05/16 Several pilot projects have been completed are available on the City’s Open Government webpage (www.slocity.org/open) including an online tool for tracking city finances. Public engagement will continue in the development of the draft public dashboard. 3 Implement a system for ongoing tracking, management, and reporting of performance and service metrics. 01/17 This project is on-track and scheduled to begin in Spring 2016. 4 Work with the Citizen’s Revenue Enhancement Oversight Commission (REOC) to accomplish enhanced reporting on the use of Measure G revenue. Ongoing New reports were provided to the REOC in November and December 2015. An annual report will be distributed citywide in February 2016. 5 Continue to implement and track operational efficiencies including alternative service delivery, best management practices, and cost containment measures that preserve the effectiveness of City services and operations. 05/17 The Finance & Information Technology Department has engaged the Government Finance Officers Association to work with the City to propose changes for more efficient and effective delivery of financial and information technology services to residents and City Departments. Staff is also in the process of forming a citywide Continuous Improvement Group (CIG) to be a resource to streamline operations using technology and business process improvement. 6 Identify and include updated performance measures in the 2017-2019 Financial Plan. 06/17 This project will begin with the next Financial Plan development in Fall 2016. 7 Addressing the City’s long term costs: Develop a budget policy for incorporation in the 2015-17 Financial Plan that reflects policy direction regarding the use of one-time resources. 06/15 Complete. A policy was adopted with the 2015-2017 financial plan. C-24 13.b Packet Pg. 334 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Fiscal Sustainability and Responsibility: 2015-17 Action Plan (20% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 8 Identify and work with a risk management expert to conduct an audit of liability and workers’ compensation claims history and cost trends to ensure appropriate risk management and cost effective coverage. Explore options within CJPIA to control costs as well as other programs offered by other providers, if applicable. 12/15 6/16 The completion date has been revised to provide more time to identify a risk management expert to conduct the audit. 9 Establish objectives to contain or reduce liability and/or workers compensation claims and work with departments to achieve reductions. 12/15 6/16 Analysis has been conducted and an overall objective proposed but further vetting is needed with internal stakeholders prior to launching and aligning with the fiscal year. 10 Propose and implement payment to a long-term cost item from year-end fund balance at mid-year as based on policy adopted by the City Council in the 2015- 17 Financial Plan. 06/16,06/17 Staff has recommended to Council with the Mid-Year report for 2105-16 to retain a higher level of reserve in anticipation of unanticipated costs associated with El Nino storms. A recommendation about paying down long term unfunded liabilities will return to Council at the Supplement in June 2016 when a better understanding of the impacts of the storm season has been gained. 11 Review progress regarding liability and/or workers compensation claim reduction 02/17 Ongoing Quarterly liability and workers compensation claims reviews with key stakeholders are underway to ensure active case management and to close claims more quickly when appropriate. 12 Continue investment in infrastructure maintenance Ongoing The City adopted a policy as part of the 2015-2017 Financial Plan to prioritize paying unfunded liabilities and deferred maintenance projects with one time revenues. The City increased the CIP budget in the 2015-2016 fiscal year by 53% compared to the 2014-2015 fiscal year. 13 Continue developing, implementing and reporting on operational efficiencies Ongoing The Community Development Department will be reporting performance measures being tacked during the 2015-2016 mid-year budget. Performance measures for each department are being developed for the 2017-2019 Financial Plan. C-25 13.b Packet Pg. 335 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Fiscal Sustainability and Responsibility: 2015-17 Action Plan (20% complete) Objective: Implement the City’s Fiscal Responsibility Philosophy with a focus on the reduction of unfunded liabilities. # Task Completion Date Revised Status 14 Complete a comprehensive analysis of City costs and fees every five years 08/15 05/16 As a result of transitions in staff, the Finance Director, and other managers involved in this project the date has been adjusted to Mid May 2016. 15 Adjust existing fees per Council policy and in accordance with User Cost Recovery Goals Annually This will occur with the consideration of the 2016 Supplement in June. 16 Review and adjust enterprise fees and rate structures as required to ensure they remain appropriate and equitable Ongoing Staff will continue to revisit these fees to ensure that they cover costs and are consistent with applicable laws. Provided current revenue trends; the drought surcharge is likely to remain in effect for the foreseeable future. 17 Monitor receipts of local revenues (such as business licenses, utility user taxes, franchise fees) and initiate effective collection strategies to ensure that revenues and taxes are paid by those who are obligated to pay them. Ongoing Staff has reinstituted reporting TOT on a monthly basis and is following up with any unpaid UUT and business license fees. 18 Implement a business license compliance program using outside consultants to identify unlicensed businesses within the community. 05/16 08/16 The timeline for this task has been adjusted to allow for new Finance Staff to take on this task and implement the objective of reducing unlicensed businesses within the community. C-26 13.b Packet Pg. 336 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Downtown: 2015-17 Action Plan (25% complete) Objective: Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. # Task Completion Date Revised Status 1 Vision and Economic Vitality •Develop RFP for Downtown Concept Plan update in coordination with the update of the City’s zoning ordinance. (08/15) •Interview and select consultants (09/15) •Complete community visioning, interviews, charrette(s), review of Mission Plaza Assessment project (12/15) •Present draft concepts and study findings to City committees and commissions for input (05/16) •Present draft concepts and study findings to Council review and approval (06/16) •Present final Concept Plan and final Mission Plaza Study to Council (07/16) •Coordinate with the Downtown Association to develop a building inventory and occupancy reporting methodology (Ongoing) •Collaborate with the Downtown to develop options for downtown residential parking (10/17) •Complete Design for Downtown Renewal (Construction proposed for 2017-18) (06/17) •Facilitate completion of Chinatown and Garden Street Terraces private developments (Ongoing) 06/17 The Downtown Concept Plan update project RFP was issued and a Contract was awarded. The Creative Vision Team (CVT) members to advise the City in the development of recommendations has been selected. The CVT has met to develop an outreach and engagement strategy. The project is on schedule to present draft concepts to City committees and commission in May 2016. Mission Plaza Assessment project was awarded and initial kick-off occurred, with interested parties being identified. Contract negotiations put the project a few weeks behind the original schedule. Construction is underway on both the Chinatown and Garden Street Terraces private projects. 2 Safety •Provide one police officer for the downtown and additional personnel as available •Provide Community Action Team (CAT) to combine enforcement, intervention & education •Coordinate with outreach groups for the homeless •Coordinate with other law enforcement agencies •Expand use of safety cameras (06/16) Ongoing Two bicycle officers are currently deployed during the daytime hours in and around the downtown. There is coverage for every day of the week with their current schedules. CAT has continued to work with the downtown bicycle officers to improve safety. CAT and the downtown officers work closely with CAPSLO and other groups to ensure those with needs are connected to services. Additional cameras are being purchased for other locations in the downtown. 3 Infrastructure and Maintenance •Complete Sidewalk Repairs & Tree Replacements (06/16)06/17 Priority lists for sidewalk repairs downtown are prepared and the work will be issued through the Job Order Contract. C-27 13.b Packet Pg. 337 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) 2015-16 MID-YEAR REPORT: UPDATE OF MCG & OIO Downtown: 2015-17 Action Plan (25% complete) Objective: Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. # Task Completion Date Revised Status •Complete Sidewalk Repairs & Tree Replacements (06/17) •Replace Higuera Lighted Crosswalk (06/17) •Upgrade Mission Plaza Railing (06/16) •Upgrade Mission Plaza Railing (06/17) •Start Construction of Marsh Street Bridge (06/16) •Complete Design for Mission Plaza Restroom – Construction proposed for 2017-18 (06/17) •Implement Parking Program organizational change (01/16) •Initiate Environmental Study for the Palm / Nipomo Parking Structure (01/17) •Develop and implement annual report outlined in the Public Works Strategic plan, to report annually on Downtown Support (06/16) •Continue Downtown Street Sweeping (Ongoing) •Continue Downtown Sidewalk & Bubblegum Alley Steam Cleaning (Ongoing) •Continue Downtown Trash Pickup & Graffiti Removal (Ongoing) •Continue Newsrack Enforcement & Permitting Program (Ongoing) Marsh Bridge design is close to completion as is environmental study work. Property acquisition, permitting, and the need for a Memorandum of Agreement with the State regarding historic preservation will mean the project will construction in 2017 at the earliest. The Palm Nipomo Parking Structure project was reviewed and direction and direction provided by Council in January 2016. Ongoing work efforts the Downtown include the following regular activities: Street Sweeping, Sidewalk & Bubblegum Alley Steam Cleaning, Trash Pickup & Graffiti Removal, and implementation of the Newsrack Enforcement & Permitting Program. C-28 13.b Packet Pg. 338 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Status of Major CIP Status of Major Fleet & I.T. Replacements COMMUNITY DEVELOPMENT 100% 90% 15% 100% 15% 5% 60% 50% 100% 100% 50% 100% 90% 50% 1% 1% 100% 100% 30% 10% 100% 50% 80% 50% 90% Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Neighborhood Paving 2016 Marsh Street Bridge City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Hockey Court Resurfacing Islay & French Tennis Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Highland & Chorro Bike Improvements Laguna Lake Dredging & Sediment Management 100% 90% 15% 100% 15% 5% 60% 50% 100% 100% 50% 100% 90% 50% 1% 1% 100% 100% 30% 10% 100% 50% 80% 50% 90% Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Neighborhood Paving 2016 Marsh Street Bridge City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Hockey Court Resurfacing Islay & French Tennis Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Highland & Chorro Bike Improvements Laguna Lake Dredging & Sediment Management PUBLIC UTILITIES 100% 90% 15% 100% 15% 5% 60% 50% 100% 100% 50% 100% 90% 50% 1% 1% 100% 100% 30% 10% 100% 50% 80% 50% 90% Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Neighborhood Paving 2016 Marsh Street Bridge City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Hockey Court Resurfacing Islay & French Tennis Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Highland & Chorro Bike Improvements Laguna Lake Dredging & Sediment Management TRANSPORTATION 100% 90% 15% 100% 15% 5% 60% 50% 100% 100% 50% 100% 90% 50% 1% 1% 100% 100% 30% 10% 100% 50% 80% 50% 90% Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Neighborhood Paving 2016 Marsh Street Bridge City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Hockey Court Resurfacing Islay & French Tennis Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Highland & Chorro Bike Improvements Laguna Lake Dredging & Sediment Management LEISURE, CULTURAL, & SOCIAL SERVICES PUBLIC SAFETY 100% 90% 15% 100% 15% 5% 60% 50% 100% 100% 50% 100% 90% 50% 1% 1% 100% 100% 30% 10% 100% 50% 80% 50% 90% Fire Station #2 Restroom & Dorms Margarita Lift Station Replacement Reservoir #2 Replacement Johnson Waterline Water Resource Recovery Facility Upgrade Broad Street Bike Boulevard Neighborhood Paving 2016 Marsh Street Bridge City Wayfinding Signs Los Osos Valley Road Interchange Storm Drain System Replacement Curb Ramps 2015 Jack House Elevator Removal Laguna Lake Natural Reserve Accessible Trail Hockey Court Resurfacing Islay & French Tennis Court Resurfacing Olympic Pool Replastering Golf Course Restrooms Highland & Chorro Bike Improvements Laguna Lake Dredging & Sediment Management 70% 75% 25% 100% 40% Purchased New Equipment & Fleet (Purchased… Police Audio Recording Upgrade Police 911 System Upgrade I.T. - Citywide Window 7 Upgrade I.T.- City/County Parcel Project UNDER STUDY OR DESIGN UNDER CONSTRUCTION Design work begins Summer, 2016 C-29 19 of 26 vehicles) 13.b Packet Pg. 339 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Section D RECENT REVENUE REPORTS 13.b Packet Pg. 340 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) D-1 13.b Packet Pg. 341 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) D-2 13.b Packet Pg. 342 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Monthly TOT Report November 2015 December 30, 2015 This report covers the City's transient occupancy tax (TOT) revenues for November 2015 compared with the two prior years. As reflected below, revenues for the month of November 2015 are down by -1.9% from the same month last year and up 7.6% year to date over the prior year. Currently this report covers 38 hotel establishments representing 2,215 rooms. It also includes $1,875 collected from 19 Homestay properties year to date. For more information, please call Marjorie Hernandez at (805) 781-7124. Year To Date TOT Revenues Prior Year Last Year This Year2013-14 2014-15 2015-16 Amount PercentJuly$699,845 $766,299 845,455 79,156 10.3%August 674,279 739,801 777,211 37,410 5.1%September 515,315 560,728 644,409 83,681 14.9%October 509,435 597,372 644,370 46,998 7.9%November 425,789 478,904 469,814 (9,090) -1.9% Year To Date Total 2,824,663 3,143,105 3,381,260 238,154 7.6%December 355,315 393,761January331,853 402,940February367,300 433,861March449,179 522,702April567,570 613,487May549,986 603,617June646,237 728,694 This report is based on the amounts reported by the operators for the month in which the tax is due. Last Year Vs This YearIncrease (Decrease) D-3 13.b Packet Pg. 343 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) slocity.org © 2014 City of San Luis Obispo 13.b Packet Pg. 344 Attachment: b - Mid Year Report 2015-16 (1254 : 2015-16 Mid-Year Budget Review) Page intentionally left blank.