HomeMy WebLinkAbout11-19-2019 Council Agenda PacketTuesday, November 19, 2019
5:30 PM CLOSED SESSION Council Hearing Room
990 Palm Street
San Luis Obispo Page 1
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart,
Vice Mayor Andy Pease and Mayor Heidi Harmon
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: Donald
Clyde Baer, an incompetent person by and through his Guardian ad Litem Jennifer L. Baer -
Riedhart, and Carolyn Baer, an incompetent person by and through her Guardian ad Litem
Jennifer L. Baer-Riedhart, v. City of San Luis Obispo; Carolyn Margaret Fergoda; and Does
1 through 100; San Luis Obispo Superior Court Case No. 18CV-0471.
Adjourn to the Regular City Council Meeting scheduled for Tuesday, November 19, 2019 at 6:00
p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo.
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Tuesday, November 19, 2019
6:00 PM REGULAR MEETING Council Chambers
990 Palm Street
San Luis Obispo Page 2
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart,
Vice Mayor Andy Pease and Mayor Heidi Harmon
PLEDGE OF ALLEGIANCE: Council Member Carlyn Christianson
PRESENTATIONS
1.INTRODUCTION OF ADMINISTRATIVE ANALYST FOR UTILITIES - KELLY
MATTOS (FLOYD – 5 MINUTES)
APPOINTMENTS
2.APPOINTMENT TO THE ACTIVE TRANSPORTATION COMMITTEE
(PURRINGTON / CHRISTIAN – 5 MINUTES)
Recommendation:
In accordance with the recommendation of the Council Liaison Subcommittee, confirm the
appointment of Donette Dunaway to the Active Transportation Committee (ATC) to
complete an unexpired term through March 31, 2022.
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 November 19, 2019 Page 3
CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three-minute time limit.
3.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
4.DRAFT MINUTES REVIEW - NOVEMBER 12, 2019 CITY COUNCIL MEETING
(PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on November 12, 2019.
5.CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2020-21 COMMUNITY
DEVELOPMENT BLOCK GRANT AND GRANTS-IN-AID PROGRAMS
(CODRON / VERESCHAGIN)
Recommendation:
Approve the Community Development Block Grant and Grants-in-Aid funding priorities for
the 2020-21 funding year, as recommended by the Human Relations Commission.
6.2019-20 FIRST QUARTER FINANCIAL REPORT (ELKE / HARNETT)
Recommendation:
Receive an update on the status of the current financial position, Major City Goals, and CIP
projects for the first quarter of Fiscal Year 2019-20. The City’s Financial Reporting and
Budget Administration policy for interim reporting requires that staff prepare and issue a
formal quarterly report to the Council.
San Luis Obispo City Council Agenda November 19, 2019 Page 4
7.AMENDMENT #2 TO THE CURRENT AGREEMENT FOR JOINT
CONSTRUCTION AND FINANCING COSTS FOR AN ANIMAL SERVICES
FACILITY (HERMANN / BETZ)
Recommendation:
Authorize the City Manager to approve Amendment #2 to the Agreement for Allocation
of Construction and Financing Costs for an Animal Services Shelter.
8.HIGUERA STREET SIDEWALK REPAIR, SPECIFICATION NO. 91320
(STANWYCK / MCGUIRE)
Recommendation:
1.Approve construction documents for “Higuera Street Sidewalk Repair, Specification No.
91320”; and
2.Authorize Staff to advertise for bids and authorize the City Manager to award the
construction contract, if the lowest responsible bid is within the Engineer’s estimate of
$295,000.
9.MARSH STREET BRIDGE REPLACEMENT EASEMENTS, SPECIFICATION NO.
90480 (STANWYCK / MCGUIRE)
Recommendation:
1.Authorize the City Manager to execute an extension agreement with 1042 Pacific Street,
a California General Partnership, for a temporary construction easement at 1042 Pacific
St.; and
2.Authorize the City Manager to execute an extension agreement with Charles Zanoli,
Surviving Trustee, for a temporary construction easement at 1043 Marsh St.; and
3.Authorize the City Manager to execute an extension agreement with the Maino Family
Trusts for temporary construction easements at 1020 & 1080 Marsh St.
10.INTEGRATED REGIONAL WATER MANAGEMENT (IRWM) GRANT FUNDING
FOR THE WATER RESOURCE RECOVERY FACILITY
(FLOYD / HIX / THOMPSON)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting a grant from the San Luis Obispo County Flood Control and
Water Conservation District” in the amount of $1,314,530 for the construction of the
Membrane Bioreactor and Ultraviolet Disinfection processes for the Water Resource
Recovery Facility project.
San Luis Obispo City Council Agenda November 19, 2019 Page 5
11. AUTHORIZE 2019 AIR POLLUTION CONTROL DISTRICT GRANT
APPLICATION TO SUPPORT PROCUREMENT OF INFRASTRUCTURE
NEEDED TO TRANSITION TO ZERO EMISSION TRANSIT VEHICLES
(STANWYCK / ANGUIANO / READ)
Recommendation:
1. Authorize the Public Works Director, or their designee, to execute and file grant
applications with the Air Pollution Control District (APCD) for transit projects and to
execute any related grant applications, certifications, assurances, forms, agreements, and
associated documents on behalf of the City; and
2. Approve a Transit Budget Amendment to increase the budget reflecting these grant
funds, if awarded.
12. COUNCIL CHAMBER AUDIO/VIDEO REPLACEMENT PROJECT,
SPECIFICATION NO. 100120 (HERMANN / PURRINGTON)
Recommendation:
Increase the amount the City Manager is authorized to award from $200,000 to $230,000 for
a contract if the lowest responsible bid is within the approved project budget of $230,000
from the City’s Share of the Public, Educational, and Government (PEG) funds.
PUBLIC HEARING AND BUSINESS ITEMS
13. REVIEW OF THE PROPOSED ANNEXATION OF APPROXIMATELY 39 ACRES
OF PROPERTY (30 PARCELS) ALONG FIERO LANE AND CLARION COURT
AND ASSOCIATED INFRASTRUCTURE IMPROVEMENTS, INCLUDING
APPROVAL OF THE SECOND AMENDMENT TO THE MEMORANDUM OF
AGREEMENT REGARDING THE PROPOSED ANNEXATION, AND ADOPTION
OF AN INITIAL STUDY/MITIGATED NEGATIVE DECLARATION TIERED
FROM THE FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE
AIRPORT AREA AND MARGARITA AREA SPECIFIC PLANS AND RELATED
FACILITIES MASTER PLANS (SCH#2000051062) (PL-ANNX-1166-2015; EID-0626-
2019) (CODRON / SCOTT – 60 MINUTES)
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 application for the
Annexation of the Fiero Lane and Clarion Court Properties (Fiero Lane Water Company,
FLWC) to the City of San Luis Obispo and the associated second amendment to the
Memorandum of Agreement, with Adoption of an Initial Study/Mitigated Negative
Declaration (Multiple Properties, 850 Fiero Lane, Primary; PL-ANNX-1166-2015, EID-
0626-2019)” to:
San Luis Obispo City Council Agenda November 19, 2019 Page 6
1. Approve and authorize the Mayor to execute the Second Amendment to the
Memorandum of Agreement for the Annexation of the Fiero Lane/Clarion Court area,
which incorporates conditions of annexation as recommended by the Planning
Commission; and
2. Approve the filing of an application and request for San Luis Obispo Local Agency
Formation Commission (LAFCo) to initiate proceedings for annexation of the Fiero
Lane-Clarion Court area; and
3. Direct the Community Development Director to process the application; and
4. Authorize the City Manager to execute any documents in a form approved by the City
Attorney related to the annexation of the subject lands to the City of San Luis Obispo;
and
5. Authorize the City Manager to initiate tax negotiations with the County of San Luis
Obispo; and
6. Adopt the associated Initial Study / Mitigated Negative Declaration for the annexation,
which tiers off the certified Final Environmental Impact Report for the Airport Area and
Margarita Area Specific Plans and Related Facilities Master Plans (SCH# 2000051062).
14. WATER ENERGY EFFICIENCY PROJECT
(FLOYD / BOERMAN / MEEKS – 45 MINUTES)
Recommendation:
1. Receive the Water Energy Efficiency Project Investment Grade Audit.
2. Authorize the City Manager to execute a Work Order, upon approval of the City
Attorney as to form, to enter into agreement with PG&E for implementation of the
Water Energy Efficiency Project (Project) at a not to exceed cost of $13,999,644.
3. Approve Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing use of Water Fund unreserved working capital for the
Water Energy Efficiency Project” to provide adequate cash flow when considered
necessary for Project implementation and authorize the Finance Director to execute any
and all certificates, contracts, and other documents necessary to secure project financing.
4. Authorize the City Manager to execute a no-cost, 50-year ground lease with Cal Poly for
0.5 acres adjacent to the City’s Water Treatment Plant on Stenner Creek Road.
LIAISON REPORTS AND COMMUNICATIONS
(Not to exceed 15 minutes)
Council Members report on conferences or other City activities. At this time, any Council
Member or the City Manager may ask a question for clarification, make an announcement, or
report briefly on his or her activities. In addition, subject to Council Policies and Procedures,
they may provide a reference to staff or other resources for factual 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)
San Luis Obispo City Council Agenda November 19, 2019 Page 7
ADJOURNMENT
The next Regular City Council Meeting is scheduled for Tuesday, December 3, 2019 at 5:00
p.m. and 6:00 p.m., respectively, in the Council Hearing Room and 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) 781-7140.
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 d uring 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.
Department Name: Administration
Cost Center: 1021
For Agenda of: November 5, 2019
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Kevin Christian, Deputy City Clerk
SUBJECT: APPOINTMENT TO THE ACTIVE TRANSPORTATION COMMITTEE
RECOMMENDATION
In accordance with the recommendation of the Council Liaison Subcommittee, confirm the
appointment of Donette Dunaway to the Active Transportation Committee (ATC) to complete an
unexpired term through March 31, 2022.
DISCUSSION
Active Transportation Committee (Subcommittee Members Harmon and Gomez)
Due to the resignation of Ken Kienow, effective October 6, 2019, there was an unscheduled
vacancy on the Active Transportation Committee. Mr. Kienow’s term would have expired on
March 31, 2022.
The Council Liaison Subcommittee recommends appointment from the ATC qualified candidate
list of Donette Dunaway to the Active Transportation Committee, effective November 21, 2019,
to a term expiring on March 31, 2022.
Background
The City Clerk’s office conducted an annual open recruitment for scheduled and unscheduled
Advisory Body positions between November 15, 2018 and January 18, 2019. Council Liaison
Subcommittees conducted interviews during the months of February and March of 2019. At that
time, all interviewed candidates were ranked for possible appointment to the Advisory Body
positions for which they applied. Qualified candidates that were not appointed at that time were
added to a list for possible appointment in the event of an unscheduled vacancy. When
unscheduled vacancies occur outside the annual recruitment period, Council Liaison
Subcommittee members are given the option to appoint from this list.
Policy Context
The Advisory Body Handbook, last adopted by the City Council in February 2018, outlines the
recruitment procedures, membership requirements and terms. Also contained in the Advisory
Body Handbook are the bylaws for all advisory bodies. Recruitment was performed in
conformance with recruitment procedures and bylaws.
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Public Engagement
During the past annual recruitment period, November 15, 2018 through January 18, 2019,
notices that the City was accepting applications for 15 Advisory Bodies were placed in The New
Times, The Tribune, on the City’s website and social media outlets, and sent to households as
utility bill inserts.
In accordance with the Maddy Act (California Government Code 54974), a Notice of
Recruitment for this Unscheduled Vacancy was posted on the bulletin board outside City Hall,
990 Palm Street, San Luis Obispo, California, and on the City’s website on October 9, 2019.
CONCURRENCE
The Council Liaison Subcommittee concurs with the recommendation.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
FISCAL IMPACT
There are no fiscal impacts associated with appointment to the Active Transportation Committee.
ALTERNATIVES
Council could recommend further recruitment for this position. This option is not recommended
as the ATC is currently creating the City’s first Active Transportation Plan (combination of an
update of the Bicycle Transportation Plan and creation of a Pedestrian Plan) which requires
significant time investment by the committee members.
COUNCIL READING FILES
A copy of Ms. Dunaway’s Advisory Body application is available for public review in the City
Clerk’s office.
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Tuesday, November 12, 2019
Continued Regular Meeting of the City Council
CALL TO ORDER
A Continued Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday,
November 12, 2019 at time 6:30 p.m. in the Council Chamber, located at 990 Palm Street, San
Luis Obispo, California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart, Vice
Mayor Andy Pease, and Mayor Heidi Harmon.
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa
Purrington, 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 Stewart led the Pledge of Allegiance.
PROCLAMATIONS
1. NATIONAL HOSPICE AND PALLIATIVE CARE MONTH
Mayor Harmon presented a Proclamation to Kris Kington-Baker, Executive Director of Hospice
SLO County, declaring November to be “National Hospice and Palliative Care Month.”
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PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Marisa Balmana
Jeffery Specht
Dave Hannings
Terry Mohan
Don Hedrick
---End of Public Comment---
CONSENT AGENDA
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE
MAYOR PEASE, CARRIED 5-0 to approve Consent Calendar Items 2 thru 9.
Public Comment
Item 5 – Jeffery Specht
2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
3. DRAFT MINUTES REVIEW - OCTOBER 22, 2019 CITY COUNCIL MEETING
CARRIED 5-0, to approve the minutes of the City Council meeting held on October 22, 2019.
4. AN ORDINANCE TO ADOPT BY REFERENCE THE 2019 CALIFORNIA
BUILDING AND FIRE CODES WITH LOCAL AMENDMENTS
CARRIED 5-0, to adopt Ordinance No. 1670 (2019 Series) entitled, “An Ordinance of the
City Council of the City of San Luis Obispo, California, amending Title 15 of the Municipal
Code to adopt by reference and amend the latest editions of the California Building Standards
Codes and adopting findings of fact to support the amendments.”
5. POLICE EVIDENCE ACCOUNT
CARRIED 5-0, to:
1. Authorize the transfer of funds from Fund 701 General Agency Fund – Police (for
Evidence funds) in the amount of $139,258 to General Fund balance; and
2. Authorize the Finance Director to return claimed funds that have been validated by the
Police Department, up to $7,500 to claimant from the Evidence Fund account; and
3. Authorize the City Manager to approve the close out of the Evidence Fund account
annually, at the end of each fiscal year, and appropriate funds accordingly; and
4. Adopt Resolution No 11057 (2019 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, authorizing the transfer of funds from Fund 701
General Agency Fund – Police Evidence Funds, to General Fund Balance.”
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6. PARKS AND RECREATION OFFICE REHABILITATION PROJECT,
SPECIFICATION NO. 91562
CARRIED 5-0, to approve the Project Plans and Special Provisions for the Parks and
Recreation Office Rehabilitation Project, Specification 91562, authorize staff to advertise for
bids and authorize the City Manager to award the construction contract for the Bid Total if
the lowest responsible bid is within the Engineer’s Estimate $340,000.
7. ISLAY HILL PARK PLAYGROUND RENOVATION, SPECIFICATION NO. 91654
CARRIED 5-0, to:
1. As recommended by the Parks and Recreation Commission, approve the Project Plans and
Special Provisions for the Islay Hill Park Playground Renovation Project, Specificati on
Number 91654; and
2. Authorize staff to advertise for bids and authorize the City Manager to award the
construction contract if the lowest responsible bid is within the publicly disclosed Funding
Amount of $300,000; and
3. Approve a City Sole Source purchase from GameTime Equipment in an amount not to
exceed $150,000 for purchase of playground equipment and authorize Finance Director
to execute Purchase Order upon receipt of final quote.
8. SCHEDULE OF CITY COUNCIL MEETINGS FOR 2020
CARRIED 5-0, to:
Adopt the proposed 2020 Regular City Council meeting schedule with meetings normally
held the first and third Tuesday of every month, with the following exceptions:
1. Reschedule the Regular City Council meeting of January 7 to January 14, 2020,
2. Reschedule the Regular City Council Meeting of November 3 to November 10, 2020,
3. Cancel the Regular City Council meetings of August 4 and December 15, 2020.
9. AMENDMENT TO LEGAL SERVICES AGREEMENT FOR CONTRACT DEPUTY
CITY ATTORNEY SERVICES
CARRIED 5-0, to adopt Resolution No. 11058 (2019 Series) entitled, “A Resolution of the
City of San Luis Obispo, California, approving an amendment to the Legal Services Contract
with Hanley and Fleishman, LLP, and Related Budgetary Appropriations” authorizing the
City Attorney to execute a Third Amendment to the Legal Services Agreement.
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PUBLIC HEARING ITEMS AND BUSINESS ITEMS
10. PUBLIC HEARING TO INTRODUCE AN ORDINANCE TO REZONE
PROPERTIES AT 609 & 633 PALM, 610, 614 & 630 MONTEREY, 970 & 972
NIPOMO STREETS, AND REVIEW OF A NEW PERFORMING ARTS FACILITY
AND A NEW PARKING STRUCTURE WITHIN THE DOWNTOWN
COMMERCIAL ZONE (CODRON / STANWYCK /COHEN / BURDE – 90 MINUTES)
Vice Mayor Pease recused herself as her business is located within 500 feet of the proposed
project. Vice Mayor Pease left the dais at 7:18 PM.
RECESS
Council recessed at 7:22 p.m. and reconvened at 7:26 p.m., with Council Members Christianson,
Gomez, and Stewart and Mayor Harmon present.
Council Member Gomez recused himself as his business is located within 500 feet of the
proposed project. Council Member Gomez left the dais at 7:26 PM.
Community Development Director Michael Codron and Associate Planner Rachel Cohen,
Tim Bochum, Deputy Director Public Works, Debbie Lagomarcino Rudd - RRM design
group, Pierre Rademaker – Rademaker Design, Michelle Wendler – Watry Design
(Architect), Bryce Engstrom – Architect (SLO Rep,) Kevin Harris – Managing Artistic
Director (SLO Rep,) provided an in-depth staff report and responded to Council questions.
Public Comments:
Ellie Washington
Jeffery Specht
Patty Thayer
Jeff Olds
Mary Ellen Gibson
Ursula Bishop
Penny Della Pelle
Ann Robinson
Charley Beck
Bettina Swigger
Evan Reed
Dave Hannings
Wendy George
James Papp
Barry Rands
Molly Kern
Mary Mitchell
John Dunn
Don Hedrick
John Ashbaugh
Joan Roach
Sandra Marshall
---End of Public Comment---
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RECESS
Council recessed at 9:11 p.m. and reconvened at 9:21 p.m., with Council Members Christianson
and Stewart and Mayor Harmon present.
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER STEWART, CARRIED 3-0-2 (COUNCIL MEMBER GOMEZ AND
VICE MAYOR PEASE RECUSED) to:
1. Introduce Ordinance No. 1671 (2019 Series) entitled, “An Ordinance of the City Council
of the City of San Luis Obispo, California, rezoning properties at 609 & 633 Palm, 610,
614 & 630 Monterey, 970 & 972 Nipomo Streets from Office with a Historic District
Overlay (O-H) and Medium-High Density Residential (R-3) to Downtown Commercial
Zone with a Historic Overlay (C-D-H) consistent with the Palm Nipomo Parking Structure
Project with an addendum to the Certified Environmental Impact Report as represented in
the Council Agenda Report and attachments dated November 5, 2019 (RZ-0460-2019).”
2. Adopt Resolution No. 11059 (2019 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, approving the Architectural Design of a new
Performing Arts Facility (SLO Rep Theatre) and a new Parking Structure, a deviation in
the height and floor area ratio for the parking structure, Use Permits to allow the SLO Rep
Theatre and a Parking Structure within the Downtown Commercial Zone, and adopt a
General Plan Amendment changing the project site from Office and Medium-High
Density Residential to General Retail with an addendum to the Certified Environmental
Impact Report as represented in the City Council Agenda Report and attachments dated
November 5, 2019 (609 & 633 Palm, 610, 614 & 630 Monterey, 970 & 972 Nipomo
Streets; ARCH-0415-2019, USE-0416-2019, ARCH-0448-2019, USE-0388-2017 &
GENP-0389-2017).”
With the following added direction:
• Immediately begin the process of advertising for a private partner to relocate the Heyd
adobe.
• Authorize the City Manager to use his purchasing authority to incentivize a
public/private partnership for the relocation of the Heyd adobe.
Council Member Gomez and Vice Mayor Pease rejoined the meeting at 10:04 p.m.
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11. ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT
DISTRICT
Deputy City Manager Greg Hermann, Tourism Manager Molly Cano and TBID Chair Bruce
Skidmore provided an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
VICE MAYOR PEASE, CARRIED 5-0 to:
1. Receive testimony regarding the City Council’s intention to continue the San Luis Obispo
Tourism Business Improvement District and determine whether a legally sufficient protest
is made; and
2. Adopt a Resolution No. 11060 (2019 Series) entitled, “A Resolution of the City Council
of the City of San Luis Obispo, California, declaring the basis for and the levy of the
assessment for the San Luis Obispo Tourism Business Improvement District and affirming
the establishment of the District.”
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Mayor Harmon attended the quarterly Advisory Body Meeting, visited Gopher Glen carbon
sequestering project with Bob Hill Sustainability and Natural Resources Official, attended the
WRRF groundbreaking, Central Coast Economic Forecast and the League of Women voters event
celebrating Women’s Right to Vote.
Gomez attended a Zero Waste conference in Vancouver on behalf of the City.
Vice Mayor Pease participated in a panel discussion hosted by two of the of Downtown SLO’s
committees to discuss groundwater process.
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ADJOURNMENT
The meeting was adjourned at 10:18 p.m. The next Regular City Council Meeting is scheduled for
Tuesday, November 19, 2019 at 5:00 p.m. and 6:00 p.m., in the Council Chamber, 990 Palm Street,
San Luis Obispo, California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2019
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Department Name: Community Development
Cost Center: 4007
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Cara Vereschagin, Housing Coordinator
SUBJECT: CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2020-21 COMMUNITY
DEVELOPMENT BLOCK GRANT AND GRANTS-IN-AID PROGRAMS
RECOMMENDATION
Approve the Community Development Block Grant and Grants-in-Aid funding priorities for the
2020-21 funding year, as recommended by the Human Relations Commission.
DISCUSSION
The City’s annual Community Development Block Grant (CDBG) and Grants-in-Aid (GIA)
review method provides the City Council and the public with opportunities to provide early input
in the grant award process. Establishing funding priorities is the second step in the four-step
procedure, which helps to ensure an open, inclusive, and fair grant application process. The
Human Relations Commission (HRC) is the advisory body to the City Council on funding
priorities and recommendations for both grant programs.
CDBG and GIA Program Overview
The CDBG program is a federal program administered by the U.S. Department of Housing and
Urban Development (HUD). The County of San Luis Obispo manages this grant and the final
funding decisions must be approved by the Board of Supervisors in the County’s annual Action
Plan. The funding is non-competitive, however projects that are recommended for funding must
directly or indirectly benefit low-income persons. The City’s GIA program serves to provide
financial support to non-profit organizations that promote the economic and social well-being of
the citizens of San Luis Obispo. Programs requesting funding must be tied explicitly to at least
one funding priority and must be compliant with the HRC’s Statement of Purpose and Bylaws.
CDBG and GIA Project Decision Process
The four steps in the review process for both grant programs are as follows:
1. HRC “Community Needs Workshop”: The HRC hosted a public hearing on October 2, 2019
to inform the public about the upcoming CDBG and GIA funding cycles, how to apply for
grants, to hear community views on grant funding needs, and to develop funding priorities.
In addition, an Open City Hall online forum was available to those not able to attend the
workshop. Responses were incorporated into the development of funding priorities for both
grant programs. Minutes from this meeting can be found in Attachment A.
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2. Council Priority Setting: Council sets CDBG and GIA funding priorities which is scheduled
for November 19, 2019.
3. HRC Funding Recommendations Hearings: HRC will hold two separate public hearings to
finalize funding recommendations for both CDBG and GIA programs. The hearing for the
CDBG program is scheduled for December 4, 2019. The hearing for the GIA program is
scheduled for May 6, 2020.
4. Council Approval of Final Recommendations: City Council will review and approve final
funding recommendations for both CDBG and GIA programs. The Council will hold a public
hearing for CDBG funding decisions, which is tentatively scheduled for March 3, 2020. Final
funding allocations for the GIA program is tentatively scheduled for City Council review in
July 2020.
HRC Recommended CDBG and GIA Funding Priorities for Program Year 2020-21
After hearing and reviewing public testimony, the Human Relations Commission reviewed the
previously adopted 2019 CDBG and GIA funding priorities and decided to uphold those
priorities for this grant cycle. The HRC’s recommended funding priorities for CDBG are ranked;
whereas the recommendation for GIA include one main area of importance with other remaining,
non-ranked objectives, indicated as follows:
Community Development Block Grant (ranked):
1. Provide emergency and transitional shelter, homelessness prevention and services.
2. Develop and enhance affordable housing for low and very-low income persons.
3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly.
4. Enhance economic development (to include seismic retrofit, economic stability, low- and
moderate-income jobs).
Grants-in-Aid:
Main Priority: Homeless prevention, including affordable and alternative housing, supportive
services and transitional housing
Other Priorities:
• Hunger and malnutrition prevention
• Supportive physical and mental health services for those in need
• Services for seniors and/or people with disabilities in need
• Supportive and developmental services for children and youth in need
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Diversity and Inclusion General Fund Allocation
Additionally, The HRC also attempted to collect public feedback on how to prioritize and
distribute the $20,000 allocated for diversity and inclusion efforts at the Community Needs
Workshop but was unsuccessful in that no public comment was collected. Since the public
hearing, City staff and the HRC ad-hoc diversity and inclusion subcommittee have been meeting
with community stakeholders to learn about the present community needs, to ultimately develop
next steps to distribute this funding. Once staff and the ad-hoc committee have narrowed the
scope of community needs, it is anticipated that the ad-hoc committee with make a
recommendation to the HRC on how to distribute the funding, whether it be a grant process for
members of the public, or the identification of programs or events to be funded. Upon final
consensus, the HRC will make a recommendation on how to distribute the allocation to the City
Council for consideration.
Next Steps
The next step in the CDBG and GIA program cycles is for the Council to consider th e HRC’s
recommendations and to affirm or revise the City’s funding priorities. This step is important
because these priorities will guide the HRC’s actions during grant application review. These
priorities will also guide Council’s final funding decisions, when they consider CDBG funding
recommendations in March 2020 and GIA funding recommendations in July 2020.
Policy Context
Task 15 in the Ongoing Housing Production Programs section in the 2019-21 Housing Major
City Goal states that CDBG and GIA grant funding should be prioritized for housing production
available for lower income households. The City’s Housing Element also indicates several
programs throughout the document to help facilitate affordable housing through various grant
programs.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2020-21
Funding Identified: No
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal N/A
Fees
Other:
Total
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Decisions made regarding priorities will affect how CDBG and GIA applications are evaluated
and chosen for support. The City receives CDBG funds through the County allotment and, while
this does not directly impact the General Fund, to the extent that projects can be funded through
CDBG, they are not otherwise requesting money from the City’s General Fund. The City has
historically designated a portion of General Fund monies for the GIA program and the priorities
expressed by the Council will influence how those grants will be awarded. The 2020 -21 budget
has an amount of $150,000 dedicated to the program. Establishing priorities has no immediate
fiscal impact but is helpful in allocating the CDBG and GIA funding regardless of the amount.
ALTERNATIVES
1. The Council may modify the proposed funding priorities.
2. The Council may continue consideration of the funding priorities. Direction should be given
to staff regarding additional information needed to make a decision on priorities. This
alternative is not recommended because the timelines for Advisory Body review and
application submittal are fairly structured and the addition of time could delay funding
approval for projects.
Attachments:
a - HRC Draft 10.2.19 Meeting Minutes
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Draft Minutes
Human Relations Commission
Wednesday, October 2, 2019
Regular Meeting of the Human Relations Commission
CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on
Wednesday, October 2, 2019 at 5:00 p.m. in the Council Chamber, located at 990 Palm Street, San
Luis Obispo, California, by Chair Welts.
ROLL CALL
Present: Commissioners Renoda Campbell, Bill Crewe, Abe Lincoln, Vice Chair Michael
Hopkins, and Chair Nancy Welts
Absent: Commissioners Jeannette Richardson and Emily Rosten
Staff: Cara Vereschagin, Housing Coordinator and Brian Leveille, Senior
Planner
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
None.
--End of Public Comment--
APPROVAL OF MINUTES
1. Consideration of Minutes of the Regular Human Relations Commission Meeting of
September 4, 2019.
ACTION: MOTION BY CHAIR WELTS, SECOND BY VICE CHAIR HOPKINS, 5-0-2 to
approve the minutes of the Regular Meeting of the Human Relations Commission of
September 4, 2019.
PUBLIC HEARINGS
2. Community Needs Workshop
Housing Coordinator Vereschagin presented an overview of the Community Development
Block Grant and Grants-in-Aid processes and timelines, which highlighted key dates for the
applicants. She also explained that the Workshop is intended to gather information from the
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City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of October 2, 2019
Page 2
public, regarding health and human service needs in order to develop funding priorities for the
2019-20 grant cycle. Additionally, she explained that this fiscal year, the City Council
allocated $20,000 for diversity and inclusion efforts, and that the HRC had been solicited to
collect feedback from the public during this Community Needs Workshop, as to how the
money should be distributed.
Chair Welts then opened the public hearing.
Public Comments:
Steven Orozco, Peoples’ Self-Help Housing
Kelly Cunningham
Grace McIntosh, CAPSLO
Jane Pomeroy, RISE
Jan Maitzen, Transitional Food and Shelter
Anne Wyatt, SmartShare Housing Solutions
Kirsten Rambo, StandStrong
Kevin J Drabinski, Food Bank Coalition
Alexis Okumura, Senior Volunteer Services
Chair Welts closed the public hearing.
No Action was taken on this item.
3. Establish 2020-21 Community Development Block Grant (CDBG) and Grants-
in-Aid (GIA) Funding Priorities
Chair Welts opened the public hearing.
Public Comments:
None.
Chair Welts closed the public hearing.
After hearing the public testimony, the Commission agreed that they loved the creative spark
of the community and that their mission to address all the needs was far from completion. The
public testimony also solidified that their work has been heading in a positive direction. The
Commission also expressed a desire to discuss non-fiscal priorities and to further impact and
address the crucial community needs.
ACTION: MOTION BY CHAIR WELTS, SECOND BY COMMISSIONER CREWE, 5-0-2
to approve the recommendation of the funding priorities for the 2020-21 CDBG and GIA grant
cycles to remain unchanged from what was previously adopted described following below, and
to further explore and discuss non-fiscal priorities to address the community needs:
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City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of October 2, 2019
Page 3
Grants in Aid (GIA) 2020-21 Funding Priorities
Main Priority:
• Homeless prevention including affordable and alternative housing, supportive
services, and transitional housing
Other Priorities:
• Hunger and malnutrition support
• Supportive physical and mental health services for those in need
• Services for seniors and/ or people with disabilities in need
• Supportive and developmental services for children and youth in need
Community Development Block Grant (CDBG) 2020-21 Funding Priorities
1. Provide emergency and transitional shelter, homelessness prevention and
services.
2. Develop and enhance affordable housing for low and very-low income
persons.
3. Promote accessibility and/or removal of architectural barriers for the disabled
and elderly.
4. Enhance economic development (including seismic retrofit, economic stability,
low and moderate income jobs).
STAFF & COMMISSION COMMUNICATIONS
4. Staff Updates
No updates from staff were presented.
5. Commissioner Updates
Vice Chair Hopkins reminded the Commission to reach to the 2019-20 GIA grant recipients as
assigned liaisons.
Commissioner Crewe announced that the upcoming veteran’s stand down event in Santa Maria
was providing shuttle services for attendees.
ADJOURNMENT
Chair Welts adjourned the meeting at 5:46 p.m. The next Regular meeting of the Human Relations
Commission is scheduled for Wednesday, November 6, 2019 at 5:00 p.m., in the Council Hearing
Room, 990 Palm Street, San Luis Obispo, California
APPROVED BY THE HUMAN RELATIONS COMMISSION: XX/XX/2019
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blank.
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Department Name: Finance
Cost Center: 2002
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Interim Budget Analyst
SUBJECT: 2019-20 FIRST QUARTER FINANCIAL REPORT
RECOMMENDATION
Receive an update on the status of the current financial position, Major City Goals, and CIP
projects for the first quarter of Fiscal Year 2019-20. The City’s Financial Reporting and Budget
Administration policy for interim reporting requires that staff prepare and issue a formal
quarterly report to the Council.
DISCUSSION
The accompanying First Quarter Financial Report for 2019-20 (Attachment A) provides a high-
level overview of the City’s Financial condition as of September 30, 2019. The report
summarizes revenue and expenditure actuals for the first three months of the quarter. It also
includes an update on Major City Goals tasks that were expected to be completed during the first
quarter. The report includes a Capital Improvement Project update and highlights milestones
from the first quarter. The report’s focus is on the General Fund; however, updated information
is also provided for each of the City’s enterprise funds.
Background
One of the City’s Fiscal Sustainability and Responsibility Major City Goal tasks is to implement
quarterly financial reports to monitor fiscal performance including performance measures. The
purpose of reporting on financial position more regularly is to address economic development
and fiscal health sooner, thus allowing the city to find new ways of doing business and increase
efficiency.
Report Contents
Section A: General Fund Update: Overall, the General Fund revenues and expenditures are on
track with the budget. Cannabis businesses are expected to open later than originally forecasted
so tax revenues will also lag. The City will propose a lower revenue projection at mid -year.
Another notable variance is in Development Services revenue, which has already reached over
50% of it’s revenue projection for the year. Most of this over realization is due to several big
developments completing the planning process ahead of schedule, but some is due to general
growth in development activity. The Community Development Department’s original projections
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were conservative and will be reassessed at mid-year.
Section B: Enterprise Funds Update: Enterprise fund revenue showed no variance from
projections. Collectively, the funds have reached 22% of the year’s revenue projection. None of
the funds show signs of over or underspending thus far.
Section C: Major City Goals Update: Of the twelve Major City Goal tasks that had a
scheduled completion date during the first quarter, four were completed. Task completion dates
were updated for the remaining tasks. A status report on all Major City Goal tasks will be
provided and needed adjustments recommended at mid-year.
Section D: Capital Improvement Plan Update: Public Works CIP Engineering and
Management staff have delivered numerous projects in the first quarter of FY20. A couple
highlights are the completed South Broad Street Pavement Improvements and the installation and
opening of the first permanent Pickleball Courts (three) at French Park and relocated basketball
court.
Section E: CalPERS and Debt Schedule Update: The City made its annual CalPERS unfunded
liability payment in July in the amount of $10.2 million. It also made all its debt payments due
for the first quarter, totaling just under $1 million.
Section F: Outlook for Next Quarter: Staff forecasts that Sales Tax revenue will remain high
through the holiday season, but Transient Occupancy Tax Revenue will begin to slow down.
There are eight Major City Goal Tasks expected to be completed next quarter along with several
CIP projects. The City will be launching its new budget system over the next quarter in addition
to a new quarterly Transient Occupancy Tax report that will published on the city’s website in
late November.
Policy Context
Fiscal Health Major City Goal task 4 is to implement quarterly financial reports to monitor fiscal
performance, including performance measures. Budget policy F, Goal Status Reports of major
program objectives, will be formally reported to the Council on an ongoing, periodic basis.
Public Engagement
Public comment on the item can be provided to the City Council through written correspondence
prior to the meeting and through public testimony at the meeting. First Quarter Financial Report
for 2019-20 (Attachment A)will also be posted on the City’s website for public review.
CONCURRENCE
Operating departments were provided with the first quarter financial results before the
preparation of this report. The respective fiscal officers reviewed the numbers and will be
making budget amendment requests at mid-year if needed.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A N/A N/A
State
Federal
Fees
Other:
Total N/A N/A N/A
As part of the City’s Fiscal Sustainability and Responsibility Major City Goal, $10,000 was
allocated for the ongoing staffing expenses involved with implementing quarterly financial
reports. The attached first quarter report provides a high-level overview of the City’s financial
position after the first three months of the year. No changes to the budget will be made at this
time.
ALTERNATIVES
Not receive an update on the status of the current financial position, Major City Goals, and CIP
projects for the first quarter of Fiscal Year 19-20.
Attachments:
a - FY20 First Quarter Report
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Fiscal Year
2019-20
Prepared by:
Natalie Harnett, Principal Budget Analyst
First Quarter Report
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First Quarter Financial Report
Fiscal Year 19-20
First Quarter Financial Report
Fiscal Year 2019-20
Introduction
This financial report provides an overview of the City’s financial position through the first quarter
of fiscal year 2019-20 (July 1, 2019-September 30, 2019) for the General Fund and major
enterprise operating funds. It also provides an update on the stat us of the City’s Capital
Improvement Program projects (CIP) and Major City Goals. Notable milestones or trends within
the first quarter are addressed. This report is broken down into the following sections:
SECTION A
General Fund: Operating Revenues
The following table includes first quarter revenue comparisons for FY19 and FY20 and a revenue
budget to actual comparison for FY19.
FY19 FY20 $
Variance
%
Variance FY20 % of
budget
Tax & Franchise Revenue
Sales & Use Tax 3,451,275 3,360,627 (90,648) -3% 18,060,000 19%
Local Revenue Measure G 1,725,638 1,671,117 (54,520) -3% 7,840,000 21%
Property Tax 123,611 132,909 9,298 8%17,921,000 1%
Transient Occupancy Tax 2,316,381 2,334,589 18,208 1%8,033,000 29%
Utility User Tax 1,189,307 1,187,531 (1,776) 0%5,854,000 20%
Franchise Fees 67,567 77,798 10,231 15%1,558,000 5%
Business Tax 2,550,720 2,862,835 312,115 12%2,942,000 97%
Gas Tax 267,746 393,091 125,345 47%1,783,000 22%
Cannabis Tax - - - 0%650,000 0%
Total Tax/Franchise 11,692,244 12,020,497 328,253 3%64,641,000 19%
Fees for Service
Police Services 108,290 108,157 (133) 0%742,202 15%
Fire Services 322,519 325,975 3,456 1%1,399,793 23%
Development Review 1,123,099 2,854,728 1,731,628 154%5,333,000 54%
Parks and Recreation 413,291 392,278 (21,014) -5% 1,914,645 20%
Total General Government 282,794 425,035 142,240 50%560,000 76%
Cannabis - 7,676 7,676 0%400,000 2%
Other Revenues 161,877 1,891,083 1,729,206 1068%2,262,000 84%
Subventions & Grants 21,430 18,897 (2,533) -12% 900,000 2%
Total Fees & Other 2,433,302 6,023,828 3,590,527 148%24,830,973 24%
Total Revenue 14,125,546 18,044,325 3,918,780 28%89,471,973 20%
First Quarter Actual Comparison Budget to Actual Comparison
Key: No Variance Variance Significant Variance
Section A: General Fund Update
Section B: Enterprise Funds Update
Section C: Major City Goals Update
Section D: Capital Improvement Plan Update
Section E: CalPERS and Debt Schedule Update
Section F: Outlook and Conclusion
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First Quarter Financial Report
Fiscal Year 19-20
The following factors should be taken into consideration when analyzing first quarter revenue
data:
• Property tax revenue has not yet been received .
• Only two months of Sales Tax has been received.
• Most franchise fees are collected annually in April.
• Some departmental revenues are seasonal.
• Subventions and Grants are awarded in large amounts and at varying times of the year.
• The significant increase in “Other Revenues” is due to one-time funding from SB1090
(Diablo Canyon Power Plant closure).
Overall, General Fund operating revenues are ahead of FY19 revenues during the same time
period. Although revenues are only at 20% percent of the budget through the first quarter, this
is primarily due to the timing associated with the city’s largest revenue sources, sales tax and
property tax. The majority of property tax funding is received in the third and fourth quarters of
the fiscal year.
Sales Tax: Only two months of
sales tax has been received
during the first quarter due to
the timing of disbursements
from the California
Department of Tax and Fee
Administration (CDTFA). From
the two months that have been
collected, Sales Tax revenue is
only slightly lower than FY19,
but because of true-up that
happens in later months, this
amount is likely to increase.
July 2019 marked ten years of
continuous economic growth which is the largest period of U.S economic expansion on record.
Staff expects sales tax revenue growth to slow over the next year and will continue to closely
monitor this revenue stream and provide an update at the FY20 mid-year review.
Transient Occupancy Tax (TOT): Year to date revenues are slightly higher than one year ago. Staff
forecasted growth in TOT due to three new hotels opening in 2019 and the expansion of
homestay rentals. TOT is discussed in detail in the new quarterly TOT report that will be published
in late November.
Business Tax: The renewal cycle for business tax occurs during the first quarter of the fiscal year;
therefore, most of the anticipated revenue for the year has been collected. The City had higher
revenue during the first quarter of this year compared to FY19 for two reasons. The City opened
the business license renewal period earlier and encouraged online submittals. Overall, more 3.064.18$4.02 $4.94 $4.44 FY 15 -16 FY 16 -17 FY 17 -18 FY 18 -19 FY 19 -20
(FORECAST)
SALES TAX (MILLIONS)
QTR 1 FIVE YEAR COMPARISON
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First Quarter Financial Report
Fiscal Year 19-20
businesses complied early and fewer administrative citations were sent in October. The City has
also increased business license enforcement as part of the Fiscal Health Response Plan.
Cannabis Tax: The City is currently doing background checks for the cannabis businesses that
applied in January 2019. The process is taking longer due to unexpected hurdles during
backgrounding of applicants. One non-retail business has been approved and is scheduled to
open during the winter of FY20. Staff will adjust Cannabis revenue assumptions at mid-year when
opening dates will be known for two of the three anticipated retailers.
Development Review: When taking a closer look at development review revenue, there are
three main fee types that are contributing to the notably high revenues for the first quarter.
Development review revenues are particularly difficult to forecast because there are so many
external factors that could impact development activity. “Plan Check Fees” and “Building
Permits” are fees that indicate the overall health of construction activit y within the community.
The high actuals associated with the three fee types highlighted above are directly related to
several specific, yet large development projects moving through the planning process ahead of
schedule. The Community Development Department conservatively projected revenues because
of overall uncertainty in the economy. The department is critically evaluating these revenue
streams and will adjust the budget accordingly at mid-year. The year over year revenue graph
below helps illustrate the variance. Development Services revenue has already reached over 50%
of the total revenue received in the entire year of FY19.
FY19 FY20 $
Variance
%
Variance FY20 % of
budget
Planning & Zoning Fee 120,616 203,395 82,779 69%480,000 42%
Development Review Fees 24,741 110,064 85,323 345%166,000 66%
Building Permits 428,940 884,060 455,120 106%2,263,000 39%
Code Enforcement Fees 30,353 19,806 (10,547) -35% 82,000 24%
Plan Check Fees 187,878 259,790 71,912 38%994,000 26%
Infrastructure Plan Check 228,645 1,210,853 982,208 430%923,000 131%
Encroachment Permits 66,032 69,719 3,687 6%305,000 23%
Engineering Dev Rev Fees 22,900 40,462 17,561 77%120,000 34%
First Quarter Actual Comparison Budget to Actual
Development Review Fees
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First Quarter Financial Report
Fiscal Year 19-20
General Fund: Department Operating Expenditures
The following table include first quarter staffing consumption for FY20 compared to the budget.
First quarter staffing expenditures are exactly on track. The City assumes a 2% salary savings at
the end of the year to account for vacancies and fluctuations in employee pay grades.
The following table include first quarter non-staffing consumption for FY20 compared to the
budget.
Department operating expenditures are generally on target. In a linear fashion, expenditures
should track at 25% at quarter end, but this is often not the case for non-staffing expenses. One
of the largest line item expenses in the operating budget is Contract Services and contracts are
paid at varying times of the year. For example, a department budget could go from 5% expended
to 60% expended after one large annual contractual obligation.
Staffing
General Fund Budget Actual YTD % of budget
Administration & IT 4,270,520 804,856 19%
City Attorney 779,577 163,125 21%
Community Development 4,625,003 902,672 20%
Finance 1,684,061 351,355 21%
Fire 12,298,808 2,649,803 22%
Human Resources 1,074,645 212,094 20%
Parks & Recreation 3,517,812 863,114 25%
Police 16,882,738 3,566,837 21%
Public Works 8,977,704 1,894,053 21%
Grand Total 54,110,869 11,407,908 21%
Budget to Actual Comparison
Non-Staffing
General Fund Budget (incl. FY19
encumbrances) Actual YTD % of budget
Administration & IT 4,634,253 631,148 14%
City Attorney 270,148 63,706 24%
Community Development 1,074,906 287,277 27%
Finance 805,830 158,390 20%
Fire 810,916 135,090 17%
Human Resources 518,584 22,315 4%
Parks & Recreation 1,080,337 176,229 16%
Police 1,282,269 252,603 20%
Public Works 5,237,803 985,075 19%
Solid Waste 46,510 451 1%
Grand Total 15,761,557 2,712,285 17%
Budget to Actual Comparison
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First Quarter Financial Report
Fiscal Year 19-20
SECTION B
Enterprise Funds: Operating Revenue
The table below includes first quarter actual revenue comparisons for FY19 and FY20 and a
revenue budget to actual comparison for FY20 for the Enterprise Funds.
Water & Sewer: Revenues are on track and very comparable to where they were during the first
quarter of last year.
Parking: Parking revenues were artificially low in FY19 due to change in the financial system and
parking meter revenues being entered in the following quarter. This revenue stream typically
adds about $100K-$150K per month. Considering the discrepancy, FY20 revenue are only slightly
higher than the prior year.
Transit: Most of the Transit Fund revenue is from State and Federal grants that are received at
the end of the fiscal year; therefore, having received only 5% of the forecasted revenue at this
point is completely normal.
Enterprise Funds: Operating Expenditures
The following tables include first quarter staffing followed by non-staffing consumption for FY20
compared to the budget.
Like the trend in the general fund, operating expenditures for the City’s enterprise funds are
tracking lower than 25% for the first quarter. Very similar trends were seen in FY19 but spending
usually increases during later quarters in the year. The Water fund has spent 62% of the budget
because it makes a large annual Nacimiento water payment in July.
FY19 FY20 $ Variance % Variance FY20 % of
budget
Water 5,941,218 6,282,288 341,070 5.74% 27,066,000 23%
Sewer 4,139,331 4,176,662 37,331 0.90% 17,432,427 24%
Parking 875,111 1,206,485 331,375 37.87% 5,343,000 23%
Transit 594,512 213,274 (381,238) -64.13% 4,116,000 5%
Total Revenue 11,550,172 11,878,709 328,537 2.84% 53,957,427 22%
First Quarter Actual Comparison
Enterprise Funds
Budget to Actual Comparison
Staffing
Enterprise Funds Budget Actual YTD % of budget
Parking 1,287,835 302,812 24%
Sewer 4,335,683 843,834 19%
Transit 342,360 74,495 22%
Water 4,137,825 821,332 20%
Grand Total 10,103,703 2,042,474 20%
Budget to Actual Comparison
Non-Staffing
Enterprise Fund Budget (incl. FY19
encumbrances) Actual YTD % of budget
Parking 1,343,911 180,372 13%
Sewer 2,447,295 590,241 24%
Transit 3,774,565 298,856 8%
Water 12,675,448 7,858,195 62%
Grand Total 20,241,220 3,090,565 15%
Budget to Actual Comparison
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First Quarter Financial Report
Fiscal Year 19-20
SECTION C
Major City Goals Update
Of the twelve tasks that were scheduled to be completed during the first quarter of FY20, four
were fully completed. The others are in progress and the updated completion dates are included
in the table below:
Completed
(Yes/No)Task Update Updated Completion
Date (If applicable)
Fiscal Health
Negotiate labor agreements consistent with
Fiscal Health Response Plan objectives with
the San Luis Obispo City Employees'
Association and the San Luis Obispo Police
Staff Officers' Association.
8/30/2019 No
The Human Resources Department has successfully negotiated
a labor agreement with the San Luis Obispo Police Staff
Officers Association consistent with Fiscal Health Response
Plan objectives. Negotiations with the San Luis Obispo City
Employees' Association is in progress and we are hopeful to
come to agreement in early 2020.
Winter/Spring 2020
Fund new Cannabis Detective Position using
Cannabis Fees Jul-19 Yes
The Cannabis Detective is actively working on applications and
background investigations to sucessfully integrate cannabis
industry in San Luis Obispo.
Purchase specific equipment related to
Cannabis Detective Jul-19 No Some equipment has been purchased such as a ID card
machine Ongoing through FY20
Climate Action
Support SLO Green Business Network and
Certify City Hall as a Green Business Jul-19 No
The $10,000 in support was disbursed to the SLO Green
Business Network, which has certified 20 local businesses. The
City will engage with the SLO Green Business Network to
certify City Hall as a Green Business by March 2020.
1st Quarter 2020
Sustainable Transportation
Construct Anholm Greenway Phase 1 &
2 (Grants, SB1, & GF) 2019 No
Anholm Greenway Phase 1A (Foothill/Ferrini Crossing) is
under construction and will be completed in November 2019.
Phase 1B (Foothill to Broad) and Phase 2 (Broad to Downtown)
are in design with plans to start construction by mid-year 2020.
Phase 1A - Nov 2019
Phase 1B - Nov 2020
Phase 2 - Nov 2020
Complete Prado Creek Bridge Environmental
Review & Construction Documents (Traffic
Impact Fees & Grants)
2019 No
Environmental review underway, with CEQA/NEPA documents
submitted for internal review and planned for submittal to
Caltrans by end of 2019. Anticipated completion of
Environmental, Right-of-Way Aquisition, and Construction
Documents by end of 2020.
4th Quarter 2020
Housing
Complete an Affordable Housing Nexus Study
in alignment with HE 2.15 and HE 4.6* Fall 2019 No
Nexus study is underway and on schedule. Staff anticiaptes a
final report with policy recommendations from the consultant
in mid-December.
2nd Quarter FY20
Continue the Affordable Housing Monitoring
Program* Fall 2019 No
Montioring progam is underway and staff anticipates
completion of this item in mid-December. Depending on
findings, completion of all follow-up actions associated with
this work effort may take additional time and coordination
with the City Attorney's Office.
2nd Quarter FY20
Downtown Vitality
Fund Police Field Service Technician and a
Downtown Sergeant with land lease revenues Jul-19 Yes Both positions have been hired.
Install security cameras in Mission Plaza Sept-19 No In progress. Staff working with contractor to start project. Construction to begin
January 2020
Work with Downtown SLO to update
downtown tile maps Aug-19 Yes
The design and installation of the new tile maps at
Monterey/Chorro, Marsh/Chorro and Higuera/Broad was
completed in July 2019.
Support the implementation of a Property-
Based Business Improvement District (also
included in Fiscal Health and Sustainability
Major City Goal)
Sep-19 Yes
With the withdrawl of the petition for the PBID by Downtown
SLO, the City amended its existing agreement with DSLO to
fund a one-year pilot program that will add an additional
downtown ambassador to their Clean and Safe Program.
Downtown SLO hired
a new ambasssador
and they began work
on October 25, 2019.
Tertiary MCG Priorites*
PROGRAMS/PROJECTS
2019-20
Major Task Completion
Date
Status Update (as of Sept 30, 2019)
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First Quarter Financial Report
Fiscal Year 19-20
SECTION D
CIP Update
Public Works CIP Engineering and Management staff have delivered numerous projects within
the first quarter of the fiscal year as listed in the below table. These projects include South Broad
Street Pavement Improvements, which in addition to new asphalt pavement, included Americans
with Disabilities Act (ADA) ramp upgrades and wider and safer bike lanes with striped buffers.
Public Works staff also designed and implemented Utilities projects that maintained or replaced
existing sanitary sewer and potable water systems, ensuring continued health and welfare of the
public. Other notable projects include installation of the first permanent Pickleball Courts at
French Park and maintenance of the Therapy Pool at the SLO Swim Center.
Project Proponent
Department Status LRM
Funding
Approx. Construction
Budget
South Broad Street Pavement
Improvements Public Works Completed in October Yes $2,270,500
Casa/Murray Waterline
Replacements Utilities Awarded. Construction to start
November No $2,055,000
Stafford-Kentucky-Taft Sewer
Replacement Utilities Ongoing. Completion targeted
November No $1,230,000
Osos-Leff-Santa Barbara Sewer
Replacement Utilities Completed in September No $1,103,000
Sewer Lining 2016 Utilities Substantially Completed in August No $524,000
Foothill Pipe Bursting Utilities Ongoing. Completion targeted
November No $304,000
Sewer Lining 2019 Utilities Completed in October No $228,000
Water Treatment Plant Wash Water
Tank Recoat Utilities Ongoing. Completion targeted
December No $168,000
Pickleball Courts Parks and
Recreation Completed in September No $167,000
Dispatch HVAC Replacement Police / Fire / PW Completed in October Yes $151,000
El Capitan Bridge Replacement Public Works Ongoing. Completion targeted
November No $108,000
Silt Removal 2019 Public Works /
Administration Completed in October No $97,000
Swim Center Therapy Pool Re-
Plaster
Public Works /
Parks and
Recreation
Completed in September Yes $96,000
Fire Station 4 Emergency Backup
Generator Fire Completed in September Yes $94,000
City Hall Painting Public Works Completed in September Yes $40,000
Fire Station 3 Painting Public Works Completed in August Yes $10,000
$8,645,500 Total Budget for Active Projects in FY 2019 Q1
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First Quarter Financial Report
Fiscal Year 19-20
SECTION E
Update on CalPERS Unfunded Liability Payment: The CalPERS unfunded liability payment was
made in July 2019 in the amount of $10,218,495. When the city prepays the unfunded liability, it
saves a significant amount in interest as opposed to paying the amount due monthly. For FY20,
the City saved $368,924 by prepaying the unfunded liability.
Debt Schedule: Below is a table of all debts that had maturity dates during the first quarter and
the associated payments.
SECTION F
Outlook for Next Quarter
The second quarter of FY20 will provide City staff with a clearer picture of revenue and
expenditure trends. Transient Occupancy Tax revenue typically begins to slow down in the
second quarter due to lower travel activity during the Winter months. Historically, Sales Tax
revenues for San Luis Obispo remain strong through the holiday season and drop after the second
quarter. Sales Tax revenues for the second quarter for FY20 are forecasted to be about $4.7
million, or about $300K higher than forecasted for the first quarter.
Including the first quarter Major City Goal tasks that were extended, there are eight MCG work
tasks that are scheduled to be completed next quarter. The City will also be launching the Oracle
budget module over the next three months. This system will help the departments improve
forecasting and easily generate real time revenue and expenditure information.
By January, FY19 financials will be audited and finalized, giving staff a clear picture of fund
balances and overall ending position of FY19. Depending on the amount of savings, departments
may request to increase budgets for projects or programs based on City priorities.
Conclusion
Except for identified variances, revenue and expenditures are tracking as expected. Staff will
continue to monitor these variances and report to City Council in February with the mid-year
review and proposed budget changes. Based on first quarter results, the major changes will be
to lower Cannabis related revenue projections, possibly offset by an increase in development
services.
City staff will be attending the annual Central Coast Economic Forecast on November 8, 2019 and
will be providing a comprehensive economic update at mid-year review.
Fund Item Principal
Payment
Premium/
Discount
Interest
Payment Total Final
Year
General 2018 Lease Fire Truck 31,934 4,599 36,533 2024
General 2015 Lease Mobil Data Equipment Lease 44,291 172 44,463 2020
General 2014 Lease Copiers 5,324 23 5,347 2020
General 2010 Lease Fire Truck (Apparatus)1,869 1,869 2020
Water 2004 State Water Resource Control Board 453,100 72,357 525,457 2025
Parking 2001 State Infrastructure Bank (CIEDB) Loan Marsh St 275,580 12,968 66,354 354,902 2032
TOTAL 810,229 85,325 73,017 968,571
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Department Name: Administration
Cost Center: 1001
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Ryan Betz, Assistant to the City Manager
SUBJECT: AMENDMENT #2 TO THE CURRENT AGREEMENT FOR JOINT
CONSTRUCTION AND FINANCING COSTS FOR AN ANIMAL SERVICES
FACILITY
RECOMMENDATION
Authorize the City Manager to approve Amendment #2 to the Agreement for Allocation of
Construction and Financing Costs for an Animal Services Shelter.
DISCUSSION
Background
On February 7, 2017 the City Council approved a contract with the County of San Luis Obispo,
and the Cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Pismo Beach and Paso
Robles to pay a proportional share of the County’s costs to finance and construct a replacement
of the County Animal Services Shelter (Shelter) in exchange for the continued right to use of and
services from the Shelter. The Shelter, operated by the County of San Luis Obispo’s Animal
Services Division, houses and cares for stray and owner relinquished animals. Located at 885
Oklahoma Avenue in San Luis Obispo, it is the County 's only open intake animal shelter and
receives approximately 5,000 animals annually, with dogs and cats accounting for roughly 95%
of the animals handled. The existing Shelter was constructed in 1975 and since that time
industry standards and public expectations of animal shelter have shifted substantially and many
of the shelter's original design features and characteristics are now outdated or inconsistent with
the current understanding of humane animal sheltering.
Under this service contract, all seven cities and the County are allocated shares of the County’s
costs to build a new Shelter to provide animal services based on a formula that factors the
agencies' proportionate use of field services and shelter services. The agreement provides a
mechanism to:
1. Allocate costs based on proportionate use.
2. Clarifies service and shelter governance.
3. Contains mechanisms to control construction costs and affords the County a more
efficient way to construct a shelter consistent with state law in order to satisfy local
service preferences and standards.
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On August 21, 2018 the City Council approved Amendment #1. The amendment clarified that
the first $1,000,000 of costs would be allocated solely to the County and added clarity for shared
governance of shelter services among participating agencies, and a new service approach to the
shelter operations.
Agreement Amendment #2
In April 2019, the County invited the top 3 prequalified Design-Build Entities (DBEs) to submit
proposals for the new Shelter. In July 2019, the County received proposals from 2 DBEs for
design and construction of the new Shelter: F&H Construction and Diani Bui lding Corporation.
The proposals were reviewed for firm expertise and project management, pricing for key project
components and project additives, concept design and design approach, lifecycle costs, delivery
schedule, and presentation. These categories were ranked by a selection committee consisting of
representatives from the County, City of San Luis Obispo, and the City Managers from
Atascadero and City of Grover Beach. In August 2019, the selection and project steering
committee affirmed the selection of F&H Construction as the best qualified firm providing the
best value to the project and are recommending the Board of Supervisors award them the project
at a Board of Supervisors meeting in December 2019. Final negotiations with F&H are nearing
completion, and a Design-Build contract will be awarded and signed by the County Board of
Supervisors following ratification of the amended agreement regarding project cost allocations
between the County and all partner Cities contracting for shelter services (Amendment #2).
Amendment #2 (Attachment A) identifies the increased estimated construction costs for the
Shelter. Initial project construction costs were estimated to be $13,176,500 and as part of
Amendment #1, the County agreed to reduce the costs allocated to the Cities by $1,000,000,
lowering the estimated shared construction costs to $12,176,500. Based upon the pending
Design-Build contract for the project, the total project costs to be shared by the cities and County
are $18,999,773. The increase is likely due to the current high activity in the building industry,
shortage of labor, tariffs on materials and DBEs needing to adhere to State requirements for
providing skilled labor on projects, and a high demand for design and construction of capital
projects throughout the State of California. Over the last two years, the City has also
experienced elevated bid proposals for capital projects that align with the increases demonstrated
with this project.
Previous Council or Advisory Body Action
On August 21, 2018 the City Council approved Amendment #1 to the agreement. On February
7, 2017 the City Council approved the original agreement for allocation of construction and
financing costs in exchange for the continued animal shelter use and services.
Policy Context
Under state law, each incorporated City has the option of contracting with the County or
providing their own animal services consistent with the standards outlined under state law. All
seven cities in the County of San Luis Obispo have contracted with the County for those
services. Absent an agreement to offset the County’s construction costs and to facilitate the
County moving forward with construction of a new Shelter, the cities would need to pursue
alternate service delivery methods that were deemed cumulatively more costly and less effective
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than the current County services agreements.
Public Engagement
This item is on the agenda for the November 19, 2019 City Council meeting and will follow all
required postings and notifications. The public may comment on this item at or before the
meeting.
CONCURRENCE
The County of San Luis Obispo and the cities of Arroyo Grande, Atascadero, Grover Beach,
Morro Bay, Pismo Beach, and Paso Robles have either approved Amendment #2 or are in the
process of approving it. In addition to the cities listed above, the City’s Police Department
concurs with the proposed amendment to the existing agreement.
ENVIRONMENTAL REVIEW
The County of San Luis Obispo is the lead agency under the California Environmental Quality
Act (CEQA) and will complete all required environmental review for the project. The project is
not in the City’s jurisdiction, the City will not be directly participating in the contracts for or
construction of the new Shelter and is not responsible for carrying out or approving the project or
any regulatory oversight of the project for purposes of CEQA.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $145,128* $111,028
State
Federal
Fees
Other:
Total $145,128 $111,028
*$111,028 for 19-20 and $34,100 for a one-time construction cost. Both have been budgeted in the Police
Department’s budget.
As part of the approved 2019-21 Financial Plan, the Police Department budgeted $130,000 for
the annual allocated project costs the construction of the new Shelter. The estimated annual
allocated cost derived from the Shelter project costs over the next 25 years is $111,028
(Attachment B), a savings of $18,972 in FY 19-20. There is no immediate identified use for the
savings, and it will remain in the Police Department’s budget for FY 19-20. As the lead agency
for project, the County will be funding the project through debt financing, with the participating
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cities paying their portion of the construction cost directly to the County on an annual basis. The
original agreement also included a one-time construction cost allocation of $34,100, which the
Police Department budgeted as part of the approved 2017-19 Financial Plan and is still
applicable. It brings the total due for the first year (2019-20) to $145,128.
In addition to the construction cost for the new Shelter, the City pays $151,582 annually to the
County for animal care and control services. The City, along with the six other cities within the
County, have contracted with the County for these services for many years. Services provided
include:
1. Emergency and non-emergency response of Animal Services Officers for injured and stray
animals;
2. Investigative services for animal bites, abuse, and neglect;
3. Sheltering and quarantine services;
4. Dog licensing;
5. Animal adoption and other services as required either by State law or City Municipal Code.
The Police Department administers the contract on behalf of the City and the funding for this
cost was approved in the 2019-21 Financial Plan. This funding, for animal care and control
services, is separate than the construction cost for the new Shelter.
ALTERNATIVES
The City Council may choose not to approve this amendment. This alternative is not
recommended because the estimated cost identified in this amendment is under budget and
ensures the City participates, in a joint effort with the cities and County, to ensure the County’s
construction of a new Shelter that meets the service needs of the community and is consistent
with the humane sheltering of animals.
Attachments:
a - Amendment No. 2
b - Exhibit A to Amendment No. 2
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Page 1 of 3
AMENDMENT NUMBER 2 TO THE
AGREEMENT FOR ALLOCATION OF CONSTRUCTION AND FINANCING COSTS FOR AN
ANIMAL SERVICES SHELTER AT 865 OKLAHOMA AVENUE IN SAN LUIS OBISPO,
CALIFORNIA, BETWEEN THE CITIES OF ATASCADERO, ARROYO GRANDE, GROVER
BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO AND THE
COUNTY OF SAN LUIS OBISPO
THIS AMENDMENT No. 2 (“Amendment No. 2”), dated for reference as of December 10, 2019, to the
Agreement (defined below), is entered into by and between the COUNTY OF SAN LUIS OBISPO (the
“County”), and the cities of ATASCADERO, ARROYO GRANDE, GROVER BEACH, MORRO BAY,
PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO (each, a “City,” and collectively, the
“Cities,” and, together with the County, the “Parties”, or individually “Party”).
RECITALS
The County and each of the Cities previously entered into an Agreement (“Agreement”) for allocation of
construction and financing costs for a new Animal Service Shelter at 865 Oklahoma Avenue in San Luis
Obispo, California (“Shelter” or “Project”). The Agreement is dated as of February 1, 2017.
The Parties entered into Amendment No. 1 to the Agreement, dated June 5, 2018.
The County provided written notice of increased estimated construction costs to the Cities on July 18, 2019,
pursuant to Section 3(a)(ii) of the Agreement.
The Cities approved the additional construction costs in writing, pursuant to Section 3(a)(ii) of the
Agreement.
The Parties acknowledge the benefit of collaborative and joint efforts in constructing, financing, and
managing the Shelter.
The Parties now enter into this Amendment No. 2 to memorialize the increased estimated construction costs
for the Shelter. The Agreement, Amendment No. 1and this Amendment No. 2 represent the entire
agreement between the Parties.
NOW, THEREFORE, the Parties agree as follows:
1. Recitals.
The above Recitals are true and correct.
2. Capital and Financing Costs
a) The Project construction costs to be shared by the Parties were estimated at the time the
Agreement was signed to be Thirteen Million One Hundred Seventy-Six Thousand Five
Hundred Dollars ($13,176,500). Pursuant to Amendment No. 1, the County agreed to reduce
the costs allocated to the Cities by $1 Million, thereby lowering the estimated shared
constructions costs to Twelve Million One Hundred Seventy-Six Thousand Five Hundred
Dollars ($12,176,500). Pursuant to this Amendment No. 2, and in consideration of the Design-
Build contract amount for the Project, the Project construction costs to be shared by the Parties
shall not exceed Eighteen Million Nine Hundred Ninety-Nine Thousand Seven Hundred
Seventy-Three Dollars ($18,999,773).
b) Estimated financing costs are shown in Attachment A to this Amendment No. 2 and may vary
depending on the applicable interest rate and whether there are out of pocket costs to obtain
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Page 2 of 3
financing (collectively “Estimated Project Financing Costs”). If the actual interest rate is
higher or lower than that estimated on Attachment A, the actual financing costs will vary.
3. In the event of a conflict between the terms of the Agreement, Amendment No. 1 and this Amendment No.
2, the terms of this Amendment No. 2 shall prevail.
IN WITNESS WHEREOF, by their execution below, the Parties agree to be bound by the provisions of this
Amendment, and the Board of Supervisors of the COUNTY OF SAN LUIS OBISPO has authorized and
directed the Chairperson of the Board of Supervisors to execute this Agreement for and on behalf of the
County, and the Cities of ATASCADERO, ARROYO GRANDE, GROVER BEACH, MORRO BAY,
PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO have caused this Agreement to be subscribed
by each of their duly authorized officers and attested by their Clerks.
Dated: _______________ COUNTY OF SAN LUIS OBISPO
_____________________ ____________________________
Clerk of the Board
Dated: _______________ CITY OF ATASCADERO
_____________________ ____________________________
City Clerk By:
Dated: _______________ CITY OF ARROYO GRANDE
_____________________ ____________________________
City Clerk By:
Dated: _______________ CITY OF GROVER BEACH
_____________________ ____________________________
City Clerk By:
Dated: _______________ CITY OF MORRO BAY
_____________________ ____________________________
City Clerk By:
Dated: _______________ CITY OF PASO ROBLES
_____________________ ____________________________
City Clerk By:
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Page 3 of 3
Dated: _______________ CITY OF PISMO BEACH
_____________________ ____________________________
City Clerk By:
Dated: _______________ CITY OF SAN LUIS OBISPO
_____________________ ____________________________
City Clerk By:
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SLO County Animal Services Facility
Financing cost estimates at proposal costs
July 25, 2019 market update
Project cost 13,176,500$ Scope Cost 20,348,740$
less: County‐only Road Costs (348,967)$
County Contribution (1,000,000)$ less: County Contribution (1,000,000)$
Shared debt 12,176,500$ Amount Financed 18,999,773$
Agency Share
25yr ‐ 3.5%Additional Annual Debt Service vs. MOU
low‐end
25yr ‐ 3.24%
Arroyo Grande 5.94% 45,523$ 20,231$ 65,753$
Atascadero 15.03% 115,186 51,190 166,376
Grover Beach 3.12% 23,911 10,626 34,537
Morro Bay 2.90% 22,225 9,877 32,102
Paso Robles 18.15% 139,097 61,816 200,913
Pismo Beach 1.19% 9,120 4,053 13,173
San Luis Obispo 10.03% 76,868 34,160 111,028
Unincorporated 43.64% 334,447 148,630 483,077
Avg Annual Payment 100.00%766,377$ 340,582$ 1,106,959$
MOU (low end)
Estimated Annual Debt Service at July 25th market
update
Exhibit A
to MOA Amendment No. 2
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Department Name: Public Works
Cost Center: 5006
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Michael J. McGuire, Senior Civil Engineer
SUBJECT: HIGUERA STREET SIDEWALK REPAIR, SPECIFICATION NO. 91320
RECOMMENDATION
1. Approve construction documents for “Higuera Street Sidewalk Repair, Specification No.
91320”; and
2. Authorize Staff to advertise for bids and authorize the City Manager to award the
construction contract, if the lowest responsible bid is within the Engineer’s estimate of
$295,000.
DISCUSSION
Background
The Higuera Street Sidewalk Repair is a subproject of the 2019-21 Downtown Renewal CIP
(Attachment A). The goal of this work is to improve public safety and enhance aesthetics in the
downtown core by replacing old and deteriorated sidewalks with the City’s Mission Style
Sidewalk.
When the initial Downtown Renewal project was implemented in 2012, a small section of the
sidewalk located in front of 858 & 860 Higuera Street was not included in the work as there was
a basement space below the sidewalk. The sidewalk, which was acting as the ceiling for the
basement below it, has deteriorated and needs replacement. As specialized engineering was
necessary to support the sidewalk, this became its own separate project from the rest of the
Downtown Renewal.
Construction funding was made available in 2017 and recently, the repair design work was
updated and completed for the current building codes (Attachment B). In March 2019, a small
chunk of the sidewalk at this location broke off and fell into the basement. This event indicated
that the sidewalk is deteriorating rapidly, and replacement is urgently needed.
Initial estimates from 2012, adjusted for inflation, indicated that the project could be completed
with the funding in the approved 2019-21 budget. Recently, however, the high demand for
contract labor has demonstrated that construction costs are exceeding annual inflation rates, and
prior construction estimates would likely be insufficient to fully fund the project. Costs
premiums are also expected due to the work being performed at night as well as the unusual
constraints of accessing the work site. These factors require staff to request additional funding
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for construction. The construction work is anticipated to start in January 2020 and will be
completed at night in order to minimize construction impacts to businesses. During business
hours, the City’s Contractor is required to provide fully accessible entrances for affected
businesses.
On September 30, 2019, a letter was sent to the property owner requesting a cost-sharing
arrangement between the City and the Owner so that the project could proceed to construction
(Attachment C). To date, a written response has not been received.
Policy Context
Per the October 2018 Financial Management Manual, Council approval is required for Public
Projects that cost over $175,000. Section 12.16.020 of the Municipal Code references the State
of California’s Streets and Highway Code1 that indicates the adjacent property owner of public
sidewalk is required to maintain and replace this sidewalk. The City has a past practice, in many
instances, particularly those areas of the downtown, where the sidewalk is used intensively by
the public, to maintain and repair it in the interest of public safety and liability avoidance,
because the City can be held liable for injuries occurring as the result of sidewalk conditions that
are held to be in a dangerous condition to the public. However, as this sidewalk also serves as a
roof for a basement; staff reached out to the property owner to no response. Given a failure of
this key sidewalk would negatively impact a portion of Higuera Street downtown, staff has
pursued this City-funded project but provides an alternative below for Council to consider within
the context of existing policy.
Public Engagement
Annual maintenance for public roadways, including sidewalk reconstruction, was identified and
included in the 2019-21 Financial Plan and identified as a Major City Goal.
CONCURRENCE
This project has the concurrence of the Utilities Department.
ENVIRONMENTAL REVIEW
The Community Development Department has issued a Notice of Exemption pursuant to Section
15302 Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act
Guidelines.
1 “Streets & Highways Code § 5610. The owners of lots or portions of lots fronting on any portion of a public street
or place when that street or place is improved or if and when the area between the property line of the adjacent
property and the street line is maintained as a park or parking strip, shall maintain any sidewalk in such condition
that the sidewalk will not endanger persons o r property and maintain it in a condition which will not interfere with
the public convenience in the use of those works or areas save and except as to those conditions created or
maintained in, upon, along, or in connection with such sidewalk by any perso n other than the owner, under and by
virtue of any permit or right granted to him by law or by the city authorities in charge thereof, and such persons shall
be under a like duty in relation thereto. [Added by Stats. 1941, Ch. 79]”
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2019 -20
Funding Identified: Yes
Fiscal Analysis:
Construction (Engineer’s Estimate):$295,000
Construction Contingencies:$44,500
Printing and Advertising:$500
Special Inspection:$10,000
Total Estimated Project Cost:$350,000
Proposed FY19-20 Funding Allocation:
Current Funds:$190,000
Broad Street Project Allocated Funds:$160,000
Total Project Budget:$350,000
Higuera Street Sidewalk Repair, Specification No. 91320
The 2017-19 Financial Plan, page E2-129 to E2-131, identified $160,000 for the construction
phase and $30,000 for the construction management phase. This funding was re-appropriated by
Council action June 2018 to the Laurel Lane Complete Streets project. New funding of $190,000
was provided in the 2019-21 Financial Plan to support this project; however, the revised cost
estimate for construction indicates that an additional $160,000 is needed to fully fund the project.
Staff have identified supplemental funds within a separate Downtown Renewal project for the
west side of Broad Street between Higuera and Marsh streets. That project contains a budget of
$210,000 in Fiscal Year 2019-20 and $640,000 in Fiscal Year 2020-21 for design and
construction services. In order to fully fund the Higuera Street Sidewalk Repair project, staff
proposes to utilize the portions of the 2019-20 budget from the Broad Street project to fully fund
the sidewalk replacement. Any remaining funds will be returned to the Broad Street project.
Staff recommends this alternative as the Higuera Street Sidewalk project is fully designed and
ready for advertisement. Design for the Broad Street project has not yet begun. However, by
proceeding with this funding plan, there is a potential that the Broad Street project will have
insufficient funds for construction in Fiscal Year 2020-21 and supplemental funding will need to
be allocated at that time or the scope of the Broad Street work will need to be reduced.
ALTERNATIVES
Deny advertising the Project. The City Council could choose to postpone the project. Staff does
not recommend this alternative. Further delay of replacement could lead to failure of the
sidewalk, with impacts to the businesses at that sidewalk area coupled with limited pedestrian
access along Higuera Street. Emergency repair work would cost substantially more than
addressing the repair work now.
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Direct Staff to issue a Notice of Correction to Property Owner: Council could make the
determination this work is best completed by the property owner and require that this sidewalk
be maintained by the property owner in compliance with City Municipal Code Section 12.16.020
Property Owners Responsibility and the State Streets and Highways Code. Section 12.16.020 of
the Municipal Code references the State of California’s Streets and Highway Code that indicates
the adjacent property owner of public sidewalk is required to maintain and replace this sidewalk.
To implement this requirement, the City would notice the property owner of the required repairs.
Within two weeks of the Notice of Correction being furnished to the Property Owner, the
Property Owner is required to start the sidewalk replacement work and pursue diligently until
complete. If the Property Owner fails to start this work within two weeks, the Ci ty could then
complete the necessary work. Upon completion of this work, the final cost of the work would be
presented to City Council in a Public Hearing in which City Council would make the final
determination on whether to lien the property to eventually obtain reimbursement for this cost.
This process does not preclude any cost sharing between the property owner and the City and
does not preclude Council from approving the project and authorizing advertisement for bids as
recommended by staff.
Attachments:
a - Vicinity Map
b - COUNCIL READING FILE - Plans & Special Provisions
c - Notice Letter dated September 30, 2019
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City of San Luis Obispo, Public Works, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7200, slocity.org
September 30, 2019
Lana Johns
2333 Sunrise Drive
Bishop, CA 93514
Subject: Sidewalk Repair – 858-860 Higuera Street
Ms. Johns,
This letter is in regard to the sidewalk in front of your property in San Luis Obispo, 858-860
Higuera Street. In our last conversation, on August 28, 2019, I updated you that the City had
completed a construction cost estimate which clearly indicated that the project was
underfunded and could not continue under staff’s authority and that we had concerns about
the lack of owner financial participation in the project.
Due to the increased cost of the sidewalk repair project, we must go back to the City Council
to request additional funding and obtain approval to advertise the project.
At this time, the City is concerned about the high cost of the repair work which directly
benefits your property. Further, the City of San Luis Obispo’s Municipal Code identifies the
curb, gutter and sidewalk in front of your property as being the maintenance responsibility of
the property owner.
12.16.020 Property owner’s responsibility – City Municipal Code
The maintenance, repair and collection of the cost of repair shall be governed by the
procedure set forth in Division 7, Part 3, Chapter 22 of the Streets and Highways Code
of the state. (Prior code § 7330.1)
Related, appropriate sections of the Streets and Highway Code which support the cost of repair
relationship to the property owner are included as an attachment to this letter.
While this is not a notice for correction, the City offers you the opportunity to participate in a
cost sharing of this construction work. This project not only provides safer access and benefits
to the businesses on your property but it also benefits the community. I am available to discuss
with you some proportional cost sharing for this project.
Related to our discussion, in an effort to potentially decrease costs, the City requests that there
be greater access to the basement of your property during construction (a construction access
agreement). As the only access to the basement area is through LuLu Luxe, it will be very
difficult, if not impossible, for the Contractor to access this way only once, until an access
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opening is created through the sidewalk. All safeguards will be implemented to protect Lulu
Luxe and the store contents during any access by the Contractor and its personnel. These
measures will be specified in the construction documents for the Contractor to adhere to, and
the Contractor will be obligated to pay for any and all damages that are incurred during access.
In order to complete this project quickly, staff would like to present this project with a cost
sharing arrangement between us to the City Council on November 19, 2019. The City requests
that you provide a response as soon as possible so that we may keep the project moving
forward.
If you have any questions, please contact Matt Horn at 805-781-7191.
Sincerely,
Mike McGuire
Senior Engineer
Matt Horn
City Engineer
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Department Name: Public Works
Cost Center: 5001
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager Community Services
Prepared By: Michael J. McGuire, Senior Civil Engineer
SUBJECT: MARSH STREET BRIDGE REPLACEMENT EASEMENTS,
SPECIFICATION NO. 90480
RECOMMENDATION
1. Authorize the City Manager to execute an extension agreement with 1042 Pacific Street, a
California General Partnership, for a temporary construction easement at 1042 Pacific Street;
and
2. Authorize the City Manager to execute an extension agreement with Charles Zanoli,
Surviving Trustee, for a temporary construction easement at 1043 Marsh St.; and
3. Authorize the City Manager to execute an extension agreement with the Maino Family Trusts
for temporary construction easements at 1020 & 1080 Marsh St.
DISCUSSION
Background
The Marsh Street Bridge, located near the intersection of Marsh and Santa Rosa Streets, was
approved by the City Council in January 2013 for removal and replacement. This followed a
determination by the California Department of Transportation (Caltrans) that the bridge, built in
1909, is structurally deficient. The City also contracted with Dokken Engineering to conduct a
bridge assessment to evaluate that determination. This assessment concluded that a complete
replacement of the existing bridge was the most prudent and cost-effective alternative given the
age of the structure.
Dokken Engineering began the design process for a replacement bridge at the start of 2013 and
has proceeded with development of the plans, specifications and construction cost estimate for
the bridge, which are nearly complete. Dokken has also nearly completed the environmental
permitting process, along with the City Council adoption of the Final Environmental Impact
Report (FEIR) for the Marsh Street Bridge Replacement project on May 2, 2017.
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Temporary Construction Easements
One of the most critical components for the Marsh Street Bridge Replacement project is
obtaining the Temporary Construction Easements (TCEs) from the property owners adjacent to
the bridge. The TCEs are necessary for equipment access to San Luis Obispo Creek to conduct
construction activities within the creek as well as to provide a staging and equipment area for the
bridge contractor and provide vehicular and emergency access for a medical services business
adjacent to the bridge. There are also permanent easements necessary from two of the adjacent
property owners for construction of a wing wall for the bridge.
The TCEs and permanent easements were required for obtaining clearance from Caltrans to enter
the construction phase and were obtained on April 18, 2019. Completion of this phase resulted in
the release of the Highway Bridge Program (HBP) grant funds for construction and will allow
advertising the project for construction bidding, with the award of the project to a responsive and
responsible bridge contractor and provide for construction of the bridge. The construction of the
Marsh Street Bridge is anticipated to start in Spring 2020.
The City Council authorized TCE agreements with the property owners on August 21, 2018 and
these agreements were fully enacted in November 2018. These agreements were in effect for 12 -
months, as construction was anticipated to start in March of this year (2019). Due to delays in
obtaining clearance to proceed with the construction phase and the brief federal government
shutdown, construction could not start and with this timing change the City is now required to
obtain 12 to 14-month extensions of the TCE’s so that construction can begin in 2020.
The Four Properties Requiring Temporary Construction Easement Extensions
As previously conveyed to Council, there are four parcels of property adjacent to the Marsh
Street Bridge that require TCEs in order for the replacement project to go forward. Hamner
Jewell & Associates, one of the City’s on-call consultants for right of way acquisition, has
researched the parcels based on fair market values, conferred and negotiated with the owners
(with approval by the City Council to make the offers on January 9, 2018) and prepared
agreements for the easement acquisitions. All easement acquisitions are based on negotiations
with the owners and valued for the temporary use of the property by the City, loss of use by the
owner and special considerations mentioned below. Also, the offers take into account the
duration of the TCE, which went into effect when Caltrans certified the right of way acquisitions
and extend to an additional two months beyond the anticipated construction time. The TCEs
extensions are for a 12 to 14-month period.
The property at 1042 Pacific Street, a commercial office building with multiple tenants, requires
a temporary easement through the property’s parking lot to provide patient and emergency
vehicle access to the DaVita Dialysis Center. The negotiated agreement with the owners is
$9,800 (Attachment A).
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1043 Marsh Street, site of the DaVita Dialysis Center, will lose the entrance/exit to their parking
lot for the duration of construction. Given the critical nature of the services provided by DaVita
to the community, access to the Center is a top priority during construction. Also, construction
activities will be closely monitored to have little or no impact to the day -to-day operations of the
Center. The negotiated agreement with the owner for loss of use of entrance and parking stalls,
occasional utility shutdowns and property restoration is $9,200 (Attachment B).
Two properties, 1020 & 1080 Marsh Street, are owned by several family trusts. These properties
require TCEs for accessibility to the creek bed and the area of construction work. The negotiated
extension agreement for 1020 Marsh Street and 1080 Marsh Street is $127,000 (Attachment C).
The offer for 1080 Marsh Street also includes the loss of 20 leased parking stalls and the
replacement of the parking lot after construction is completed.
Previous Council Action
On September 17, 2019, the City Council approved staff to advertise the project for construction
bids and authorized the City Manager to award a construction contract to the lowest responsible
bidder.
On July 16, 2019, the City Council approved a Request for Proposals and authorized staff to
advertise for Construction Management Services for the project.
On October 16, 2018, the City Council appropriated an additional $1,406,160 in grant funding to
match the total project amount allocated by Caltrans.
On August 21, 2018, the City Council approved the Temporary Construction and Permanent
Easement Agreements with the property owners adjacent to the Marsh Street Bridge.
On January 9, 2018, the City Council, in closed session, authorized staff to enter into property
acquisition negotiations with the properties adjacent to the Marsh Street Bridge.
On May 2, 2017, the City Council approved adoption of the Final Environmental Impact Report.
On January 22, 2013, the City Council approved the replacement of the Marsh Street Bridge.
Policy Context
As the original easements were approved by the City Council, and the bridge replacement
continues to be a high City priority, staff requests the Council approve the easement extensions
so that construction can start in 2020.
Public Engagement
The bridge replacement was identified and included in the 2015-17 Financial Plan and identified
as a Council Goal.
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CONCURRENCE
The extensions have the concurrence of the trustees and owners of the four properties involved in
the right of way acquisition activities.
ENVIRONMENTAL REVIEW
The City Council approved adoption of the Final Environmental Impact Report (FEIR) on May
2, 2017. In addition to National Environmental Policy Act (NEPA) approval with the FEIR,
environmental permitting should be completed by December 2019 with the Department of Fish
& Wildlife, the Regional Water Quality Control Board, the Army Corps of Engineers and the
State Historic Preservation Office.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Property Address Easement Acquisition
1042 Pacific Street $9,800
1043 Marsh Street $9,200
1020/1080 Marsh St. $127,000
TOTAL $146,000
The project was approved as part of the 2015-17 Financial Plan. Currently, there is $6,336,050
available in the project budget, which is sufficient to fully fund the total costs of right of way
acquisitions and consultant fees and does not impact the anticipated costs for the construction
phase. This project is 89% funded by the HBP grant funding with a 11% City Local Revenue
Measure match. The TCEs have been agreed to, but not yet funded; as described above, this
would fund the TCEs as proposed to be extended.
ALTERNATIVE
Deny executing the contracts. The City Council could choose to not authorize the extension
easements. Staff does not recommend this alternative. The City would be unable to proceed with
the construction phase. Construction would be delayed until 2021 and the acquisition of
easements would most likely need to be renegotiated with increased cost amounts, along with
increased appraisal and consultant fees.
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Attachments:
a - COUNCIL READING FILE - Agreement with 1042 Pacific Street
b - COUNCIL READING FILE - Agreement with Charles Zanoli for 1043 Marsh Street
c - COUNCIL READING FILE - Agreement with Maino Properties for 1020 & 1080
Marsh Street
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Department Name: Utilities
Cost Center: 6101
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: David Hix, Deputy Director, Utilities – Wastewater
Jennifer Thompson, Utilities Business Manager
SUBJECT: ADOPT A RESOLUTION FOR INTEGRATED REGIONAL WATER
MANAGEMENT (IRWM) GRANT FUNDING FOR THE WATER
RESOURCE RECOVERY FACILITY
RECOMMENDATION
Adopt a resolution (Attachment A) to submit a grant application and accept a grant award of
$1,314,530 from the San Luis Obispo County Flood Control and Water Conservation District for
the construction of the Membrane Bioreactor and Ultraviolet Disinfection processes for the
Water Resource Recovery Facility project.
DISCUSSION
In 2012, the City of San Luis Obispo approved the San Luis Obispo County Region Integrated
Regional Water Management Program Participants Memorandum of Understanding that outlined
the structure for water planning for San Luis Obispo County. In November of 2014, Proposition
1 was approved by the voters of California which made available $510 million in funding for
Integrated Regional Water Management (IRWM).
On June 5, 2019, the San Luis Obispo County IRWM program selected the City’s project, along
with four other regional projects, to recommend funding through Proposition 1’s implementation
grant program administered by the California State Department of Water Resources. The City’s
request is to fund a portion of the Membrane Bioreactor (MBR) and Ultraviolet (UV)
Disinfection processes for the Water Resource Recovery Facility (WRRF) project. Referred by
the project name for the grant “One Water SLO”, these components of the WRRF project will
increase the quantity and quality of the recycled water, provide the City with increased water
resiliency, and enhance the habitat downstream of the WRRF.
On September 23, 2019, the City presented its project to the State Department of Water
Resources representatives who recommended One Water SLO and four other County projec ts
submit an application for funding. The County IRWM will be submitting an application for
funding the City’s project in the amount of $1,314,530. This request is authorization to submit
the application for funding of the City’s One Water SLO project and for funding the City’s
proportionate share ($15,000) of the County IRWM’s consultant to develop the grant application.
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Policy Context
The WRRF project upgrade involves several processes to ensure compliance with the City’s
stringent requirements for treated wastewater discharge. The project will also increase capacity
that aligns with the City’s General Plan and maximize recycled water production. Pursuing grant
funding is consistent with the WRRF project’s funding strategy.
Public Engagement
Public outreach and engagement for the WRRF project and grant funding opportunities began at
the first steps of this project. The WRRF project continues engagement activities through the
project website http://slowrrfproject.org, updates in the Utilities Department Resource
newsletter, tours, presentations, and other events.
ENVIRONMENTAL REVIEW
The Environmental Impact Report (EIR) for the WRRF Project was certified by Council on
August 16, 2016.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Sewer Fund $15,000
State
Federal
Fees
Other:
Total $15,000
There is adequate funding in the WRRF Project program budget already approved by Council to
support the City’s share of consultant services. The City’s proportional cost share for consultant
services to support the County IRWM’s submittal of the grant proposal has been estimated to be
an amount not to exceed $15,000. Accepting this grant will reduce the overall costs of the WRRF
project design.
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ALTERNATIVES
Deny adoption of the resolution. Council may decide to not adopt the resolution. Staff does not
recommend this option as the City has been recommended by IRWM for the grant funding.
Accepting this grant will reduce WRRF construction costs and is consistent with the project’s
funding strategy.
Attachments:
a - Draft Resolution Accepting a Grant from IRWM
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING A GRANT FROM THE SAN LUIS
OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION
DISTRICT
WHEREAS, the City participates in the Integrated Regional Water Management (IRWM)
Program and Regional Water Management Group; and
WHEREAS, the City Council approved the “San Luis Obispo County Region Integrated
Regional Water Management Program Participants Memorandum of Understanding” outlining the
governance structure for the integrated water management planning efforts for San Luis Obispo
County and the Mayor executed the Memorandum in November 2012; and
WHEREAS, on November 4, 2014, California voters approved Proposition 1, the Water
Quality, Supply, and Infrastructure Improvement Act of 2014. Proposition 1 authorized $510
million in Integrated Regional Water Management (IRWM) funding; and
WHEREAS, the City is upgrading its Water Resources Recovery Facility to meet the
requirements of its recently adopted National Pollutant Discharge Elimination System permit,
maximize recycled water production, increase capacity, replace ageing infrastructure, and create a
community asset; and
WHEREAS, the City has prepared a design, completed bidding and will construct
Membrane Bioreactor and Ultraviolet Disinfection processes for the Water Resources Recovery
Facility project; and
WHEREAS, the City, through the IRWM, was recommended to apply for a Proposition 1
implementation grant to fund portions of the Membrane Bioreactor and Ultraviolet Disinfection
Component of the Water Resources Recovery Facility, referred to as the “One Water SLO”,
project; and
WHEREAS, the City’s One Water SLO project, and four other County projects, were
recommended for Proposition 1 implementation grant funding; and
WHEREAS, the San Luis Obispo County Flood Control and Water Conservation District
is the lead agency responsible for the IRWM program and for the administration of agreements
necessary to receive State funding; and
WHEREAS, the City wishes to submit an application and accept the grant funding for the
One Water SLO project in the amount of $1,314,530.00
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Resolution No. _____ (2019 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. That the City is authorized to submit an application to the California
Department of Water Resources to obtain a Round 1 Integrated Regional Water Management
Implementation Grant pursuant to the Water Quality, Supply, and Infrastructure Improvement Act
of 2014 (Water Code § 79700 et seq.); and
SECTION 2. That, if awarded, the City Manager is authorized to enter into an agreement
to receive a grant for the One Water SLO project; and
SECTION 3. The Director of Utilities, or designee, is hereby authorized and designated
to prepare the necessary data, conduct investigations, file such proposal, and execute a grant
agreement with California Department of Water Resources and any other documents necessary
to implement the City’s application for and award of the grant funding; and
SECTION 4. The Director of Utilities, or designee, is hereby authorized and designated
to represent the City of San Luis Obispo in carrying out City of San Luis Obispo's responsibilities
under the funding agreement, including certifying invoices and disbursement requests for Project
costs on behalf of City of San Luis Obispo and compliance with applicable state and federal laws.
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Resolution No. _____ (2019 Series) Page 3
R ______
SECTION 5. Any and all actions, whether previously or subsequently taken by City of
San Luis Obispo, which are consistent with the intent and purposes of the foregoing resolution,
shall be, and hereby are, in all respects, ratified, approved and confirmed.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this __________ day of _____________________, ___________.
____________________________________
Teresa Purrington
City Clerk
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Department Name: Public Works
Cost Center: 5201 (Transit)
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager & Interim Public Works Director
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: AUTHORIZE 2019 AIR POLLUTION CONTROL DISTRICT GRANT
APPLICATION TO SUPPORT PROCUREMENT OF INFRASTRUCTURE
NEEDED TO TRANSITION TO ZERO EMISSION TRANSIT VEHICLES
RECOMMENDATION
1. Authorize the Public Works Director, or their designee, to execute and file grant applications
with the Air Pollution Control District (APCD) for transit projects and to execute any related
grant applications, certifications, assurances, forms, agreements, and associated documents
on behalf of the City; and
2. Approve a Transit Budget Amendment to increase the budget reflecting these grant funds, if
awarded.
DISCUSSION
Background
On December 17, 2018 the California Air Resources Board adopted the Innovative Clean Transit
(ICT) fleet rule. The ICT requires all public transit agencies to transition to a 100 percent zero-
emission bus (ZEB) fleet by 2040. The City of San Luis Obispo is state mandated to have 25%
of its transit vehicles be electric by 2026. Transitioning the City’s transit fleet to zero emission
vehicles is consistent with the City’s adopted 2019-21 Major City Goal for Sustainable
Transportation.
Conventional wisdom is that transit facility infrastructure should precede any ZEB purchase and
delivery and will need to commence well in advance of the ICT 2026 mandate. Several City
initiatives are underway to address needed infrastructure upgrades necessary for the transition to
electric transit vehicles. Pursuit of the subject grant application is part of that effort.
If secured, this APCD grant will help fund the procurement of electric vehicle charging units
(infrastructure for an electrified transit fleet). Initial quotes are approximately $80,000 per charge
unit. The City’s Transit Program would like to procure three of these units; the total cost of
$250,000 for the three units is reflected in the grant application.
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The City’s Financial Management Manual Policy 740 requires that the City Council approve
grant applications equal to or greater than $5,000. Council approval is therefore sought to
approve staff’s application to the APCD to request $250,000 towards capital purchases with
regard to electric transit vehicles charging units. Aiding in at least one part of the transition
process and meeting the ICT mandate.
Grant opportunities, in addition to this one, can augment City funds for the purposes described
above vehicle electrification goals. Current and future opportunities will likely be available from
the U.S. Department of Transportation, California Air Resources Board, and the San Luis Obispo
County Air Pollution Control District. Currently, the Alt Fuel and EV Infrastructure Program
overseen by the San Luis Obispo County Air Pollution Control District (APCD) could also help
support important EV charging infrastructure for zero emission transit vehicles. Each grant has a
specific purpose and will help the Transit program address various parts needed to meet the ICT
mandate. Pursuing these discretionary grants will be critical as there are no other identified
funding sources to aid the Transit program in meeting the ICT mandate.
The submittal of grant applications to support EV charging infrastructure and conversion to zero
emission transit vehicles meets the City’s Grant Management Policy outlined in Section 740
because there is an opportunity to significantly leverage City funds on balance with only modest
staff time required to prepare the grant application; the proposed grant would result in priority
work efforts being implemented; and, all grant administration, tracking, and reporting will be
conducted in accordance with applicable City policy and any requirements specified in an
awarded grant contract.
Policy Context
The recommended action to apply for grant funding resources in support of transit electrification
will assist the City in ensuring compliance with the California Air Resources Board’s adopted
Innovative Clean Transit (ICT) fleet rule. Transitioning the City’s transit fleet to zero emission
vehicles is also consistent with the City’s adopted 2019-21 Major City Goals for Sustainable
Transportation and Climate Action.
Public Engagement
The City’s adopted 2019-21 Major City Goal for Sustainable Transportation is reflective of the
substantial public engagement process that was undertaken as part of the 2019-21 Financial Plan
including online surveys, public meetings, and the Goal Setting workshop.
CONCURRENCES
The Sustainability Manager concurs with submitting grant applications in support of the City’s
efforts to accomplish the objectives stated herein.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in
this report, because the action of submitting grant applications and proposals does not constitute
a “Project” under CEQA Guidelines Sec. 15378. If successful, any City projects using grant
funding would undergo all applicable reviews under CEQA and would be conducted in a manner
consistent with adopted City plans.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
Transit Fund $0 $5,000 $5,000
State $0 $0 $0
Federal $0 $0 $0
Fees $0 $0 $0
Other: APCD $250,000 $0 $250,000
Total $250,000 $5,000 $255,000
There is no impact on the City’s General Fund as a result of applying or receiving these grant
funds because this falls under the Transit Fund. If awarded these funds will supplement the
Transit Enterprise fund in achieving a capital project needed to support electric vehicles. This
infrastructure project, at this time, has no other identified funding source beyond limited federal
5307 funding and their local match requirements.
As stated previously, there are several low to no-cost initiatives underway to address needed
infrastructure upgrades necessary for the transition to electric transit vehicles. This grant is just a
part of several electric fleet readiness efforts. Other grants and agreements are also being
researched and prepared for Council’s consideration, in the near future, t o support construction
and installation costs.
Some nominal ongoing costs are to be expected and can be accommodated within the Transit
Program’s operating budget. These costs are largely tied to annual maintenance of the equipment
(i.e. cleaning out filters). These costs are approximate $5,000 for the three chargers there on.
Funds to support this will largely come from the savings achieved as a result from less purchase
of diesel fuel.
The City’s Public Works Department has time allocated within its normal work program to
prepare and submit grant applications. If successful, these grant facilities and other public-private
agreements, will significantly leverage and augment the City’s funds budgeted for this purpose in
the City’s Transit Fund. Exact project and maintenance costs, however, are not yet known.
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ALTERNATIVES
1. The City Council could request additional information or analysis from staff.
2. The City Council could deny the request to submit grant applications.
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Department Name: Administration & IT
Cost Center: 1021
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk and Brian Nelson, Senior Civil Engineer
SUBJECT: COUNCIL CHAMBER AUDIO/VIDEO REPLACEMENT PROJECT,
SPECIFICATION NO. 100120
RECOMMENDATION
Increase the amount the City Manager is authorized to award from $200,000 to $230,000 for a
contract if the lowest responsible bid is within the approved project budget of $230,000 from the
City’s Share of the Public, Educational, and Government (PEG) funds.
DISCUSSION
Background
The City maintains an audio-visual system in the Council Chamber to broadcast public meetings
on television and online through the City’s website. This is a valuable service to the public and
upgrading the equipment will further enhance overall ease of access by increased video and
audio quality and new tools for efficiently viewing individual portions of meetings.
The current equipment was installed in 2012 and the expected lifespan was 5 to 7 years. Today,
at the end of 2019, the system is unreliable, and it is extremely hard to obtain replacement parts.
Furthermore, technology has changed since the current equipment was installed in 2012. In order
to improve customer service to our residents, an upgrade of the equipment in the Council
Chambers is recommended.
On September 17, 2019 the City Council authorized inviting bids for the Council Chamber
Audio/Video Replacement Project, Specification Number 100120. Two bids were received and
opened on October 24, 2019. Both bids were rejected as nonresponsive as each did not comply
with the bidding instruction and City Standard requirements for bid responsiveness.
Staff is requesting to increase the total amount of the project to $230,000 and increase the amount
the City Manager is authorized to award to the same amount of $230,000. The reason for the
requested increase in the budget is due to the tight construction timeline, the need to expedite the
project and based on the bids received and rejected as nonresponsive our estimate for the project
was low.
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Previous Council or Advisory Body Action
This project was added to the City Council approved 2019-21 Financial Plan, Capital
Improvement Plan on September 17, 2019.
Policy Context
Funding for Public, Educational and Government (PEG) programming comes from a fee levied
against the local cable company, as permitted by the Digital Infrastructure and Video
Competition Act of 2006 and by the City’s Municipal Code (SLOMC 5.72.010.) One of the
eligible uses of these funds is for the purchase and maintenance of broadcasting equipment in the
Council Chamber. The City currently broadcasts City Council and Planning Commission
meetings along with other City-related programming on Charter Cable Channel 20 (CATV) and
through the City’s website.
Public Engagement
The original Request for Bid was published in the New Times and available on the City’s
website for a three-week period. The rebid project will be published in the New Times and be
available on the City’s website for a 14-day period. No additional public engagement was done.
The public may comment on the item in writing prior to the City Council meeting or during
public comment at the meeting.
CONCURRENCE
The Public Works Department and Information and Technology Division concurs with the
recommendations in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year:
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal
Fees
Other PEG
funds:
$230,139 $230,000 $139 $5,000
Total $230,139 $230,000 $139 $5,000
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There is no fiscal impact to the General Fund for this project. It will be funded from existing
PEG funds which can only be used for the acquisition and maintenance of equipment and
facilities directly related to providing PEG services (Channel 20 Broadcast.). There are presently
no other proposed uses for these funds.
The City currently has $230,139 in the Government portion of the PEG fund account
(712.0000.21008.) The estimated total project cost is $230,000, leaving a remaining balance in
the account of $139. The City receives approximately $9,000 per quarter, or $36,000 a year, in
new government PEG funds.
ALTERNATIVES
Deny the request to increase the amount the City Manager is authorized to award. This is
not recommended as further delaying the replacement of the audio/video equipment will result in
further degradation of the equipment and could prevent the City from being able to televise and
live stream City Council and Planning Commission meetings.
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Department Name: Community Development
Cost Center: 4003
For Agenda of: November 19, 2019
Placement: Public Hearing
Estimated Time: 60 minutes
FROM: Michael Codron, Community Development Director
Prepared By: Shawna Scott, Senior Planner
Dave Watson, Contract Planner
SUBJECT: REVIEW OF THE PROPOSED ANNEXATION OF APPROXIMATELY 39
ACRES OF PROPERTY (30 PARCELS) ALONG FIERO LANE AND
CLARION COURT AND ASSOCIATED INFRASTRUCTURE
IMPROVEMENTS, INCLUDING APPROVAL OF THE SECOND
AMENDMENT TO THE MEMORANDUM OF AGREEMENT REGARDING
THE PROPOSED ANNEXATION, AND ADOPTION OF AN INITIAL
STUDY/MITIGATED NEGATIVE DECLARATION TIERED FROM THE
FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE
AIRPORT AREA AND MARGARITA AREA SPECIFIC PLANS AND
RELATED FACILITIES MASTER PLANS (SCH#2000051062) (PL-ANNX-
1166-2015; EID-0626-2019)
RECOMMENDATION
As recommended by the Planning Commission, adopt the Draft Resolution (Attachment A) to:
1. Approve and authorize the Mayor to execute the Second Amendment to the Memorandum of
Agreement for the Annexation of the Fiero Lane/Clarion Court area, which incorporates
conditions of annexation as recommended by the Planning Commission (Attachment A,
Exhibit A); and
2. Approve the filing of an application and request for San Luis Obispo Local Agency
Formation Commission (LAFCo) to initiate proceedings for annexation of the Fiero Lane-
Clarion Court area; and
3. Direct the Community Development Director to process the application; and
4. Authorize the City Manager to execute any documents in a form approved by the City
Attorney related to the annexation of the subject lands to the City of San Luis Obispo; and
5. Authorize the City Manager to initiate tax negotiations with the County of San Luis Obispo;
and
6. Adopt the associated Initial Study / Mitigated Negative Declaration for the annexation, which
tiers off the certified Final Environmental Impact Report for the Airport Area and Margarita
Area Specific Plans and Related Facilities Master Plans (SCH# 2000051062).
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REPORT-IN-BRIEF
The Fiero Lane-Clarion Court annexation, proposed by the Fiero Lane Water Company (FLWC),
includes 30 parcels and 38.97 acres of land located within the Airport Area Specific Plan
(AASP) (Attachment A, Exhibit A, Annexation Map; and Attachment B, Detail Map and Legal
Description). The subject area has long been identified as an annexation area, pursuant to the
City Council’s adoption of the AASP on August 23, 20051 and Ordinance No. 1481,2 which
established pre-zoning within the AASP, including the project area. The City’s General Plan3
and AASP4 (and associated Environmental Impact Reports and analyses5,6) have included the
proposed annexation area when considering potential future growth and associated demands for
public infrastructure and transportation improvements. As the proposed annexation is consistent
with these documents, a tiered Initial Study/Mitigated Negative Declaration is proposed for
Council adoption.
This annexation area has historically received water and wastewater services via the FLWC, and
is currently receiving City water service under an Outside User’s Agreement approved by the
San Luis Obispo Local Agency Formation Commission (LAFCo), pursuant to a Memorandum of
Agreement (MOA), Municipal Code amendment, and Addendum to the AASP Final EIR
approved by the City Council in 2015. 7 These approvals were made in anticipation of having the
FLWC work with City staff on the details of a future annexation. A one-year extension of the
Outside User’s Agreement was approved by LAFCo in March 2019 following the City Council’s
decision to amend the MOA8 to reflect an updated annexation schedule and infrastructure
funding opportunity. For reference, both the 2015 and 2019 MOAs are included with Attachment
C. The 2015 Plan For Services adopted for the 2015 MOA is included for reference as
Attachment D.
The Planning Commission considered the proposed annexation and associated Initial
Study/Mitigated Negative Declaration (IS/MND) on October 9, 2019 and recommended the City
Council authorize the annexation and adopt the environmental document. Minor clarifications
have been added to the IS/MND to further mitigate identified construction-related impacts and
expand upon the discussion regarding earlier analysis incorporated by reference from the Land
Use and Circulation Element (LUCE) and AASP Final EIRs (Attachment E). The recommended
Second Amendment to the MOA (Attachment A, Exhibit A) is provided to include additional
conditions of approval as recommended by the Planning Commission, and to provide an updated
1 Council Agenda Report adopting the AASP:
https://opengov.slocity.org/WebLink/DocView.aspx?id=31312&dbid=0&repo=CityClerk
2 Ordinance No. 1481: https://opengov.slocity.org/WebLink/DocView.aspx?id=50593&dbid=0&repo=CityClerk
3 Land Use Element Policy 1.13.5 Annexation in Airport Area; Policy 7.7 City Annexation and Services; Policy 7.14
Growth Management (see: http://www.slocity.org/home/showdocument?id=6635 )
4 AASP Chapter 9.1 (see: http://www.slocity.org/home/showdocument?id=4294)
5 Land Use and Circulation Element Final EIR: https://www.slocity.org/government/department-
directory/community-development/planning-zoning/general-plan
6 AASP and MASP Final EIR: https://www.slocity.org/government/department-directory/community-
development/documents-online/environmental-review-documents/-folder-719
7 Council Agenda Report addressing the 2015 MOA and Outside User’s Agreement, including Addendum to AASP
FEIR: https://opengov.slocity.org/WebLink/DocView.aspx?id=53305&dbid=0&repo=CityClerk
8 Council Agenda Report approving First Amendment to MOA in 2019:
https://opengov.slocity.org/WebLink/DocView.aspx?id=91686&dbid=0&repo=CityClerk
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schedule for annexation and associated infrastructure improvements (Attachment A, Exhibit A).
Based on the evaluation presented in this report and recommended Second Amendment to the
MOA, the proposed annexation would be consistent with the stated goals of the City’s General
Plan, AASP, and long-term interest in bringing this area into the City. The planned public and
private infrastructure improvements are consistent with the General Plan and AASP and are
addressed in the certified Final EIRs for the LUCE and AASP, and the recommended IS/MND.
Timing of improvements and financial contributions by the applicants/property owners are
adequate to address a coordinated transition of the land from County control to the City.
Following Council action, if authorized, the City will work with FLWC on an annexation
application submittal to LAFCo.
DISCUSSION
Background
The Fiero Lane-Clarion Court annexation area, proposed by the Fiero Lane Water Company
(FLWC)9, includes 30 parcels and 38.97 acres of land located within the Airport Area Specific
Plan (AASP) boundary, on the west side of Broad Street, east of Santa Fe Road (Attachment A,
Exhibit A, Annexation Map; Attachment B, Detail Map and Legal Description; Figure 1. Fiero
Lane-Clarion Court Proposed Annexation Area). The Fiero Lane-Clarion Court area is located
within the City’s Sphere of Influence and adopted LAFCo Urban Service Area for the City. The
area is developed with a mix of industrial, manufacturing, commercial, and office uses, with an
estimated 500,124 square feet of total building area.
9 Representing the property owners within the proposed annexation boundary.
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Figure 1. Fiero Lane-Clarion Court Proposed Annexation Area
Summary of Previous Action by the City and LAFCO
In December 2015, the City Council approved Resolution No. 10678 to adopt the 2015 MOA
and associated Addendum to the Airport Area and Margarita Area Specific Plan Final EIR
(Attachment C) that established a mutual understanding between the City and the FLWC to
pursue a series of steps to ultimately annex these properties into the City. Part of this
understanding included an agreement for the City to provide interim water and wastewater
services to the properties pending completion of the annexation process 10. Adoption of the 2015
MOA was the culmination of extensive negotiations between the City and property owners over
the manner in which annexation of this area could occur. Adoption of the 2015 MOA set the City
on a course of pursuing annexation and established a mutual understanding of how the City
would be reimbursed for costs incurred while processing the annexation, identification of what
infrastructure would be granted to the City upon annexation, an analysis of the conditions of said
infrastructure and various improvements to be completed to upgrade this infrastructure to City
10 Codified in City Municipal Code §13.16.020.E. Water and Sewer Service for Private Use Outside City Limits,
Exceptions. Provision of interim water and/or sewer service to the Fiero Lane and Clarion Court annexation area, as
set forth in the memorandum of agreement between the city of San Luis Obispo and Fiero Lane Water Company and
adopted by city council Resolution No. 10678 (2015 Series). (Ord. 1627 § 2, 2015; Ord. 951 § 2, 1983)
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standards11. Subsequent actions by LAFCo included approval of an Outside User’s Agreement
between FLWC and the City to allow for the provision of City water and wastewater services on
April 21, 2016, and approval of a two-year extension of the Outside User’s Agreement on April
6, 2017.
During this time, FLWC and City explored financing options for paying fees and completing
needed infrastructure associated with the pending annexation. This process led to several 2018
actions to implement a City-County Statewide Community Infrastructure Program (SCIP)12, a
funding option for the Fiero Lane-Clarion Court property owners. Resolutions authorizing the
SCIP program were adopted by the San Luis Obispo County Board of Supervisors (September
18, 2018) and City Council (November 13, 2018). Under the SCIP program, similar to
assessment district financing, an engineer’s report will be prepared that will outline the costs of
the needed improvements and City fees and allocate those costs to individual property owners.
At that point the property owner may elect to pay their fair share of these costs or can take
advantage of the SCIP process to issue bonds, and essentially finance their share of
improvements.
On March 19, 2019, the City Council approved the following actions: 1) a one-year extension to
the 2015 MOA to extend interim water and wastewater services pending annexation of the Fiero
Lane-Clarion Court area to the City; 2) First Amendment to the 2015 MOA, which included
minor changes to the 2015 MOA to facilitate the extension, update schedule tasks, and clarify
payment of water and wastewater impact fees; and 3) authorized the Community Development
and Utilities Directors to adjust the MOA schedule to allow for financing and planning for
infrastructure. Following Council action, LAFCo approved a one-year extension of the Outside
User’s Agreement (set to expire March 2020).
Planning Commission Review and Recommendation
On October 9, 2019 the Planning Commission conducted a public hearing to consider the
proposed annexation and associated Initial Study/Mitigated Negative Declaration and provide a
recommendation to the City Council. The Planning Commission’s review included consideration
of the 2015 MOA, the First Amendment to the MOA (extending interim water and sewer service
to March 2020), the proposed Plan For Services for the annexation, as well as the progress made
in identifying public infrastructure and private improvements necessary to accommodate the
annexation of the Fiero area and provision of public services to the area. The Planning
Commission also considered the IS/MND prepared for the proposed annexation.
Commission discussion included a review of annexation-specific conditions for infrastructure
under the MOA and Plan For Services, discussion of roadways and associated improvements,
discussion of various environmental questions regarding land uses permitted under the County
and how those would transition into City lands, water and wastewater availability for the
annexation area, and mitigation measures recommended by staff that were reflective of earlier
environmental work on the annexation (refer to additional discussion under Environmental
11 Refer to Council Agenda Report dated December 1, 2015 for additional background information and Addendum:
https://opengov.slocity.org/WebLink/DocView.aspx?id=53305&dbid=0&repo=CityClerk
12 For general information about SCIP, see here: http://cscda.org/Infrastructure-Finance-Programs/Statewide-
Community-Infrastructure-Program-(SCIP)
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Review for more detail). The Planning Commission voted 4-0-3 recommending the City Council:
1) approve the filing of an application for annexation of the Fiero Lane-Clarion Court area and
direct the Community Development Director to process the application with LAFC o, 2)
authorize the City Manager to execute any documents in a form approved by the City Attorney
related to the annexation of the subject lands to the City of San Luis Obispo, and 3) adopt the
proposed Initial Study/Mitigated Negative Declaration (Attachment F, Planning Commission
Minutes and Resolution). The conditions of approval recommended by the Planning Commission
are incorporated into the Second Amendment to the MOA (Attachment A, Draft Resolution,
Exhibit A). Based on further communications with FLWC and the City’s Transportation
Division, a condition regarding establishment of City-controlled public right-of-way access to
specified parcels within the annexation area has been modified for the Council’s consideration to
allow for further negotiations between the City and FLWC, including an option for a City
easement (Attachment A, Exhibit A, Infrastructure Improvements Item 1.c).13
Annexation Description
The applicant is proposing annexation that will result in the continuance of existing uses and
future development patterns that reflect manufacturing, business park, offices and construction
services. As summarized above, the Fiero Lane-Clarion Court annexation area is receiving City
water service. FLWC provides wastewater service to this area (as well as the nearby East Airport
Commerce Park (EACP) – east of Broad Street between Farmhouse Lane, Kendall Road and
Prospect Street) via a small private treatment plant within the service area. Upon annexation of
the Fiero Lane-Clarion Court area to the City, water and wastewater services would be converted
to connect to City utility systems. In the case of the FLWC wastewater treatment plant serving
the EACP, this plant would need to be moved to the EACP area to continue to provide service to
the EACP pending their annexation to the City. An application to annex the EACP area is
currently under staff review at this time and is anticipated to be considered by the City Council
early 2020. Staff anticipates that the EACP annexation and conversion to City services can be
completed concurrently, eliminating the need to relocate the private treatment plant. The FLWC
annexation has been planned to cover either circumstance (relocation and continued private
treatment for EACP – or concurrent conversion to City treatment system) depending on the
ultimate timing of the EACP annexation. Additionally, recycled water supply will also become
available to the FLWC area following annexation.
Public Facility Financing and Development Impact Fees
As detailed in the Memorandums of Agreement (Attachment C) and as noted in the “Plan For
Services” for the annexation area (Attachment D), annexation of the subject properties will
trigger the need for various capital investments in the existing private systems that will be made
public under the terms of the annexation. To complete these improvements, a financing
mechanism has been proposed by the property owners/applicants that will allow capital
improvements to be engineered, constructed and paid for through the SCIP. This financing
program will allow plans to be developed, bids to be secured, and then property owners will have
the option of paying their fair share of construction costs upfront or elect to finance the
improvements in an approach very similar to assessment district financing. This financing
program has been supported by Council actions on the Fiero planning effort and are appropriate
for this use. The SCIP program also allows development impact fee contributions negotiated in
13 Proposed changes are shown in strikeout and italics/underline.
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the MOAs to be paid or financed in this fashion.
Water Demands and Wastewater Generation from the Proposed Annexation
Because of the partially developed nature of the annexation area, information is readily available
to use in identifying current demands and can be used to project buildout demands for each
service to ensure City resources are readily available to support the annexation areas. Current
and projected water and wastewater needs are summarized in Table 1 (Annexation Area Water
Demand and Wastewater Generation).
Table 1. Annexation Area Water Demand and Wastewater Generation
Acres Building
Area (1) (2)
Water
Demand (1)
Wastewater
Generated (1)
2018 Water
Availability
(3)(4)
Wastewater
Capacity (3)
Developed Parcels 36.47 ac 500,124 SF 19.00 AFY 15,000 gpd
Undeveloped Parcels 2.50 ac 50,000 SF 1.90 AFY 1,500 gpd
Totals 38.97 ac 550,124 SF 20.90 AFY 16,500 gpd 10,130 AF 5.4 mgd
Notes:
(1) 2015 Fiero Lane Annexation – EIR Addendum to Airport Area and Margarita Area Specific Plans
(2) Potential building area, and water/wastewater estimates, increased by approximately 10% to account for
remaining potential development
(3) 2018 Water Resources Status Report14
(4) Water and Wastewater Element15 / mgd = million gallons per day
Pursuant to the City’s 2018 Water and Wastewater Element, which addresses build -out under the
City’s Land Use Element (including the subject annexation), and consultation with the City
Utilities Department, existing and future water availability and sewer capacity is adequate to
serve the annexation area.
Update on Annexation Task List and Schedule from the MOA
The First Amendment to the MOA (approved by the City Council in March 2019) included an
update of the tasks completed toward annexation, identification of funding for future
improvements through the SCIP, and an updated schedule that included target dates for
completion of the annexation. That schedule, included as Section 9 of the MOA (refer to
Attachment C), assumed that Council action on the annexation request would be completed by
Summer of 2019, LAFCo action to approve the annexation would be completed by Fall 2019,
engineering plans would be readied for construction over the Winter of 2019-2020, annexation of
the property would occur just prior to the start of construction, and construction of the
improvements would be completed by July 2020. The schedule incorporated into the Second
Amendment to the MOA (Attachment A, Exhibit A) includes updates showing that the overall
sequence of tasks remains the same, but the timeframe has been extended in part to allow for
concurrent annexation with the EACP area and to accommodate the SCIP process.
14 2018 Water Resources Status Report available online: https://www.slocity.org/Home/ShowDocument?id=22442
15 Water & Wastewater Element (May 15, 2018), available online:
https://www.slocity.org/home/showdocument?id=19965
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Recent discussions with the applicant’s representative indicate the Fiero-Clarion annexation area
is readying its submittal of their application to the County and SCIP program for financing of the
fees and infrastructure improvements required. Staff is advised that the SCIP funding should
become available by April 2020, which would then allow final engineering plans to be prepared,
and construction to follow. Under this timeframe, if funding is available by April 2020, the City
is anticipated to move forward on the annexation and supervise the preparation of engineering
plans and the construction process as a city project with the improvements’ completion by the
end of 2020. The applicant will pay normal and customary permit fees to process permits
necessary to implement public improvements as shown in the final engineering plans.
It is anticipated that annexation of the Fiero-Clarion and EACP areas would occur concurrently,
and under this concurrent process, the relocation of the wastewater treatment facility (and
associated permitting and extra costs) would not be required. The annexation areas would be
brought into the City’s wastewater collection, treatment and disposal system together, allowing
for the decommissioning of a private wastewater plant immediately adjoining city limits.
Aligning the Fiero-Clarion process with the EACP annexation could also allow coordination
(and cost efficiencies) in the completion of infrastructure and the decommissioning of the private
treatment plant. LAFCo staff have indicated they support this “merging” of the two annexation
efforts, should it be possible, and will provide assistance to the City in working through the
complexities of the annexation applications.
Policy Context
General Plan Policy Consistency
The 2014 General Plan Land Use Element (LUE) established a number of community goals,
policies and programs for annexation and development that relate to the proposed annexation
area (refer to additional discussion below), including:
• Airport Land Use Plan Consistency
• Annexations and Growth Management
• Airport Area Specific Plan Consistency
• Financing of Fair-Share Infrastructure and Development Impacts
Airport Land Use Plan Consistency. General Plan Chapter 7, Policy 7.7 provides that the
subject annexation areas shall be actively pursued by the City provided the annexations are
consistent with the Airport Area Specific Plan and LUE Policy 1.13.5 (Annexation in Airport
Area). The proposed annexation is consistent with the standards for land uses, infrastructure and
fair-share cost contributions of the AASP. The AASP has been determined to be consistent with
the County’s Airport Land Use Plan (ALUP), and the uses that exist within the annexation areas
were approved by the County under findings of consistency with the ALUP. As proposed, the
annexations would result in a continuation of the previously permitted uses and any future uses
would be subject to AASP standards, the City’s Zoning Regulations, and Community Design
Guidelines.
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Annexations and Growth Management. Noted LUE Policies include:
1.13.3. Annexation Purpose and Timing
The City may use annexation as a growth management tool, both to enable appropriate
urban development and to protect open space. Areas within the urban reserve line which
are to be developed with urban uses should be annexed before urban development
occurs. The City may annex an area long before such development is to occur, and the
City may annex areas which are to remain permanently as open space. An area may be
annexed in phases, consistent with the city-approved specific plan or development plan
for the area. Phasing of annexation and development will reflect topography, needed
capital facilities and funding, open space objectives, and existing and proposed land
uses and roads.
1.13.5. Annexation in Airport Area
Properties in the Airport Area Specific Plan may only be annexed if they meet the
following criteria:
A. The property is contiguous to the existing city limits; and
B. The property is within the existing urban reserve line; and
C. The property is located near to existing infrastructure; and
D. Existing infrastructure capacity is available to serve the proposed development;
and
E. A development plan for the property belonging to the applicant(s) accompanies
the application for annexation; and
F. The applicant(s) agree to contribute to the cost of preparing the specific plan
and constructing area-wide infrastructure improvements according to a cost -
sharing plan maintained by the City.
Following the adoption of the AASP, planning for the Fiero-Clarion annexation commenced.
Since that time additional planning for the EACP annexation is underway. This simultaneous
planning process results in a greater degree of coordination in bringing these annexation areas,
which currently share independent private infrastructure in the County, into the City. In this case,
the Fiero-Clarion annexation area satisfies all the prerequisites under GP LUE Policy 1.13.5 and
is recommended for annexation.
Airport Area Specific Plan Consistency. The AASP includes a series of goals, policies and
programs to comprehensively guide development of the Planning Area. Additional guidelines
and development standards are included in the AASP, as well as infrastructure requirements and
a plan for implementation of the Plan. Overall goals of the AASP include:
1. Provide a framework to move from County developments primarily focused on heavier
industrial and manufacturing uses to a blend of these established uses, both inside and
outside the City, with new uses focused on lighter industrial and manufacturing uses,
professional and business park developments and employment centers.
2. Plan for proposed development, including annexations within the Planning Area, so that
public facilities are developed concurrently with new development in a rational and cost-
effective fashion.
3. Protect and enhance natural resources within the AASP, including emphasis on
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maintaining visual qualities of the surrounding hills and open space areas and protection
of creek corridors, wetlands and habitat qualities.
The uses that exist in the annexation areas are consistent with the uses anticipated by the City’s
AASP, and the annexation does not include any changes to the pre-zoning previously approved
by the City Council. As described herein and in the referenced attachments, the financial and
infrastructure planning needed to bring these properties into the City have been completed. In
and of itself the annexation of the subject properties will not change the built environment of the
area. Any expansion or modification of existing uses will be subject to City development
standards. Future planning and development would be managed under the AASP standards and
would result in consistency as new projects are brought forward.
Financing of Fair-Share Infrastructure and Development Impacts. General Plan Policies
discussed previously focus on new development paying its fair share. The proposed annexation
will be responsible under the adopted MOA for financing infrastructure and paying negotiated
development impact fees and contributions to assist in addressing cumulative project impacts,
such as traffic, pedestrian and bicycle paths. These contributions, whether paid up front or
financed under the SCIP approach will ensure adequate contributions are received from the
annexation areas.
Plan For Services
The proposed annexation area has been analyzed to identify their impact on overall City services.
To document this analysis and the recommendations derived from that analysis, a Plan For
Services has been developed and adopted in 2015 for the annexation area (Attachment D). A
summary of that document is included below.
Current Conditions – Fiero Lane-Clarion Court Annexation Area. Fiero Lane and Clarion
Court provide vehicular access to the area. These roads do not intersect; each is a cul -de-sac
dead end. Fiero Lane access comes from Broad Street and Clarion Court is accessed via Santa
Fe Road; Clarion Court would remain a private road post-annexation. At this time the Santa Fe
Bridge facility is not intended to be annexed. No improvements to the bridge are identified with
this action. Domestic water is delivered by the City via the water distribution system from Broad
Street along Aerovista Lane to the water holding tank near the center of the annexation area.
Water is distributed from the tank via pressurized water lines installed with the original
developments of the area. Wastewater is collected by both gravity and force main/lift stations
and conveyed to a private treatment plant operated by the FLWC at the end of Fiero Lane.
Treated wastewater is disposed of in a leach field system to the immediate south (and outside)
the annexation area.
Emergency services are provided by the County, but these areas are also supported by the City
under mutual aid agreements between the City and County. General government services are
provided by the County. Storm water management, collection and disposal is handled by the
private property owners under County-approved plans. Solid waste services are provided by the
County via private contract with local waste and recycling providers.
Post-Annexation Conditions – Fiero Lane-Clarion Court Annexation Area. Roadway
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rehabilitation and upgrades are planned to bring the roads, walkways and street signage up to
City standards. Following annexation, the roads, curbs, gutters and sidewalks will be maintained
by the City under the Pavement Management Plan.
Water system upgrades for the annexation area will include some main line and hydrant
replacements, water meter replacements, and valving and backflow prevention will be installed.
The City will continue to provide water service post-annexation.
Conversion of the Fiero Lane-Clarion Court area to the City’s wastewater system will occur
following City installation of a gravity collection line along Fiero Lane that will serve to collect
wastewater from the location of the existing Fiero Lane Water Company wastewater plant (at the
end of Fiero Lane cul-de-sac). This new City line would convey wastewater by gravity to an
existing wastewater main line in Broad Street, and from there is conveyed to the City’s Water
Resource Recovery Facility (WRRF). Until such time as this conversion occurs, the private
FLWC treatment plant and disposal system will continue to operate as currently constituted.
Much of the existing collection system within the annexation area along Clarion Court will
remain a private collection and conveyance system, ultimately sending wastewater to the City’s
new gravity main at Fiero Lane noted above. A new lift station in the vicinity of the FLWC
wastewater plant is also planned. Following the connections of the various properties in the Fiero
Lane-Clarion Court Annexation Area, the wastewater plant will be decommissioned at this
location (it is possible this plant would be moved to the East Airport Annexation Area to serve
those users as noted earlier and briefly summarized below).
Preferred Wastewater Alternative: The FLWC wastewater system will be converted
to interconnect with a gravity collection line in Broad Street, and from there is conveyed
to the City’s WRRF. The force main and lift station currently serving the area would be
abandoned. The timing of this work is contingent on the decommissioning of the FLWC
wastewater plant following the connections of the various properties in the Fiero Lane-
Clarion Court Annexation Area.
Interim Wastewater Alternative: If annexation of the East Airport Area is delayed, or
improvements are not completed at the time of the FLWC wastewater plant
decommissioning, it is possible this treatment plant would be moved to the East Airport
Annexation Area to serve those users on an interim basis. In such a case treated
wastewater would be stored and disposed as recycled water in the East Airport Area.
Recycled water supplies are also included in the Plan For Services, with extensions made by the
applicants within the annexation area, to facilitate connection to this supply when it can be made
available.
Police and Fire emergency services would be provided by the City. It is expected the mutual aid
agreements would remain between the City and County. General government services would be
assumed by the City. Storm water management and solid waste services would continue as they
presently exist.
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Public Engagement
Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s
Municipal Code, the project was noticed per the City’s notification requirements. Newspaper
legal advertisements were posted in New Times ten days prior to each meeting (Planning
Commission and City Council). Additionally, postcards were sent to both tenants and owners of
properties located within 300 feet of the project site ten days before each advisory body hearing.
Public comment was provided to the advisory bodies through written correspondence and
through public testimony at each of the hearings.
CONCURRENCE
Staff comments provided during review of the proposed annexation are incorporated into the
presented evaluations and Second Amendment to the MOA.
ENVIRONMENTAL REVIEW
Environmental analysis of the proposed annexation has been guided by previous work in the
form of the Airport Area and Margarita Area Specific Plans Final EIR (2005), FEIR Addendum
for the Airport Area and Margarita Area Specific Plans (2015), and the City of SLO General
Plan Land Use and Circulation Elements (LUCE) FEIR (2014 ). An Initial Study of
environmental impact was prepared to document whether there have been changed
circumstances since the referenced EIRs were completed, to analyze consistency of the
annexation with the General Plan and Airport Area Specific Plan (AASP ), and to identify any
potentially necessary mitigation measures that should be applied to the annexation process, as
well as the completion of needed infrastructure (new or rehabilitation) to support City services to
the areas. The Notice of Intent to Adopt an IS/MND was filed with the San Luis Obispo County
Clerk and was advertised in the New Times on September 19, 2019. The IS/MND was also
submitted to the State Clearinghouse (received September 19, 2019). The 30-day public review
period started on Friday September 20 and ended October 21, 2019.
Following Planning Commission review, a letter was submitted by the SLO County Air Pollution
Control District (APCD) on October 21, 2019 that elaborated on construction phase mitigation
measures for the proposed annexation area. These mitigations included implementing dust
control and idling emission limitations from construction vehicles to any construction projects in
the annexation area. Staff has added these updated suggestions to the proposed mitigation
measures and conditions of approval for the annexation as reflected in Attachment A, Exhibit A
(Second Amendment to the MOA) and Attachment E (Initial Study/Mitigated Negative
Declaration).
In the case of the Fiero Lane-Clarion Court annexation, the 2015 and 2019 MOAs, as well as the
2015 Plan For Services, were relied on to identify the needed infrastructure that is incorporated
into the Project Description for the annexation. The conclusion of the Initial Study completed for
the proposed annexation is that by incorporating the needed infrastructure features of the MOA
and Plan For Services, in addition to and as a direct result of the analysis of the noted EIRs, and
implementation of mitigation measures identified in the Initial Study, the annexation and
provision of infrastructure services to the area would result in a less than significant effect s on
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the environment. Therefore, an Initial Study / Mitigated Negative Declaration is recommended
for adoption in association with the proposed Fiero Lane-Clarion Court annexation (Attachment
E).
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-2021
Funding Identified: Fee supported activity based on 100% cost recovery.
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cos
General Fund N/A
State
Federal
Fees
Other:
Total
When the AASP was adopted, it was accompanied by a fiscal impact analysis, which found that
annexation of the properties within the Airport Area Specific Plan (AASP) boundary would
result in positive fiscal impacts for the City; approximately $750,000 net fiscal benefit annually
at build- out. The proposed future annexation will help the City realize the positive fiscal impact
indicated in the fiscal analysis, as anticipated by the AASP.
One of the key and critical next steps is to negotiate a tax exchange agreement with the County
of San Luis Obispo. Approval of a tax exchange agreement is a precedent requirement before
LAFCo can finalize the proposed annexation. Because the proposed area is largely developed,
the Master Tax Exchange Agreement provides that the City and the County will negotiate both
existing and future tax revenues.16 These negotiations cannot commence until the City Council
approves the filing of an application.
ALTERNATIVES
1. Continue the item. An action to continue the item should include a detailed list of
additional information or analysis needed to make a determination on the project.
2. Deny the proposed annexation based on findings of inconsistency with the AASP and/or
General Plan. This action is not recommended because the analysis indicates the project is
consistent with the General Plan and AASP, 2015 and 2019 MOAs, and because the
Outside Users Agreement is set to expire in March 2020.
16 1996 Property Tax Exchange Agreement: For commercial and industrial annexation areas already substantially
developed, tax exchange will be negotiated on a case-by-case basis between the annexing city and the County to determine
an appropriate property tax sharing arrangement, based upon the principle of fiscal neutrality for the County .
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Attachments:
a - Draft Resolution
b - COUNCIL READING FILE - Exhibit A to Resolution
c - Detail Map and Legal Description
d - COUNCIL READING FILE - 2015 and 2019 MOA
e - Plan for Services
f - Initial Study MND
g - Planning Commission Minutes and Resolution
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RESOLUTION NO. _______ (2019 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING APPLICATION FOR THE
ANNEXATION OF THE FIERO LANE AND CLARION COURT
PROPERTIES (FIERO LANE WATER COMPANY, FLWC) TO THE CITY
OF SAN LUIS OBISPO AND THE ASSOCIATED SECOND AMENDMENT
TO THE MEMORANDUM OF AGREEMENT, WITH ADOPTION OF AN
INITIAL STUDY/MITIGATED NEGATIVE DECLARATION (MULTIPLE
PROPERTIES, 850 FIERO LANE, PRIMARY; PL-ANNX-1166-2015, EID-
0626-2019)
WHEREAS, on December 1, 2015 the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of considering a Memorandum of Agreement regarding the proposed
annexation of property along Fiero Lane and Clarion Court and the provision of interim water and
sewer service; and
WHEREAS, on December 1, 2015 the City Council adopted Resolution No. 10678
approving a Memorandum of Agreement (MOA) to pursue annexation of the subject properties
and to provide interim water and wastewater services to said area pending completion of the
annexation process; and
WHEREAS, on March 19, 2019 the City Council adopted a First Amendment to the 2015
Memorandum of Agreement, which revised the schedule for completion of the annexation and
extending the time for consideration of the annexation with the Local Agency Formation
Commission (LAFCO), as prescribed in Resolution No. 10994 (2019 Series); and
WHEREAS, the referenced MOAs and the 2016 Fiero Lane Water Company (FLWC)
“Plan For Services” include details on the studies, analysis, scheduling and financing of the
consideration of said annexation and the needed public and private infrastructure improvements to
be completed as part of any annexation; and
WHEREAS, the City is actively working with the applicants and their consultants on
detailing the various improvements and implementation of the financing plans to complete said
improvements; and
WHEREAS, all the requirements, conditions and implementing measures of said
Resolutions No. 10678 and 10994 have been met by the applicants in order to consider the
annexation; and
WHEREAS, a duly noticed Public Hearing before the Planning Commission was held on
September 25, 2019 to consider testimony and input on the proposed annexation, needed public
and private infrastructure improvements, development impact fees and charges to be paid to the
City, environmental considerations for the annexation, and review of the timing and
implementation of said fees and improvements;
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WHEREAS, the Planning Commission recommended the City Council approve the
annexation and adopt the associated Initial Study/Mitigated Negative Declaration; and
WHEREAS, environmental analysis of the proposed annexation has been guided by
previous work in the form of the Airport Area and Margarita Area Specific Plans Final EIR (2005),
FEIR Addendum for the Airport Area and Margarita Area Specific Plans (2015), and the City of
SLO General Plan Land Use and Circulation Elements (LUCE) FEIR (2014); and
WHEREAS, an Initial Study of environmental impact was prepared for the proposed
annexation, which tiers from the certified Final EIR for the Airport Area and Margarita Area
Specific Plans, documents whether there have been changed circumstances since those referenced
EIRs were completed, analyzes consistency of the annexation with the General Plan and Airport
Area Specific Plan, and identifies mitigation measures that would be required to mitigate
potentially significant impacts resulting from the annexation process and the construction of
needed infrastructure (new or rehabilitation) to support City services to the areas; and
WHEREAS, the conclusion of the Initial Study of environmental impact is that by
incorporating the needed infrastructure features of the 2015 and 2019 MOAs, as well as the 2016
Plan For Services, in addition to and as a direct result of the analysis of the noted EIRs, and
implementing noted mitigation measures, any significant effects of the annexation and provision
of infrastructure services to the area would result in a less than significant effect on the
environment.
WHEREAS, the City Council has duly considered all evidence, including testimony of the
applicant, interested parties, and the evaluation and recommendations by staff, presented at said
hearing; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council does hereby adopt
the following findings in support of its authorization for application for the annexation of the Fiero
Lane/Clarion Court area from the County of San Luis Obispo into the City of San Luis Obispo:
1. This proposal for annexation is made pursuant to Title 5, Division 3, Part 3 of the Cortese-
Knox-Hertzberg Local Government Reorganization Act of 2000, California Government
Code Section 56000, et. seq.
2. The annexation boundary and the nature of the annexation are outlined in Exhibit A, which
includes the Second Amendment to the Memorandum of Agreement (MOA) between the
City of San Luis Obispo and the Fiero Lane Water Company, the First Amendment to the
MOA, the 2015 MOA, and annexation boundary map.
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3. The project area is identified in the Airport Area Specific Plan as a future annexation area,
and no changes to identified pre-zoning or General Plan land use designations are
proposed. The proposed annexation is consistent with the Airport Area Specific Plan,
which was determined to be consistent with the San Luis Obispo County Airport Land Use
Plan.
4. The proposed annexation is consistent with the General Plan, including Policies 1.13.3
(Annexation Purpose and Timing) and 1.13.5 (Annexation in Airport Area) because the
proposed project satisfies all the prerequisites identified under 1.13.5 and pre-zoning was
established upon adoption of the Airport Area Specific Plan, which is a prerequisite for
allowing development on the site under the City’s General Plan.
5. The Fiero Lane-Clarion Court area is within the City’s Sphere of Influence as defined by
the Local Area Formation Commission (LAFCo), which is an area designated for eventual
annexation provided that City services can be provided, and that annexation is otherwise
consistent with LAFCo policies.
6. Memorandum of Agreement and Plan for Services provides a framework for providing the
necessary City services, and approval of the Second Amendment to the Memorandum of
Agreement between the City and the Fiero Lane Water Company adequately addresses the
parameters of interim service and establishes sufficient penalties/timeframes to ensure
future annexation and implementation of infrastructure improvements.
SECTION 2. Environmental Review Findings and Adoption. Based upon all evidence in
the record before it, including the Initial Study and any comments received, the City Council
hereby adopts the Initial Study/Mitigated Negative Declaration (IS/MND) prepared and circulated
for the annexation, and which tiers off the certified Final Environmental Impact Report for the
Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans (SCH#
2000051062), and adopts the following California Environmental Quality Act Findings:
1. During consideration of the 2015 MOA, the Council approved an Addendum to the
certified Final Environmental Impact Report (FEIR) for the Airport Area and Margarita
Area Specific Plan. The Council determined that approval of the 2015 MOA did not meet
the criteria for preparing a subsequent or supplemental EIR pursuant to the California
Environmental Quality Act (CEQA) Guidelines Section 15164. Following this 2015
approval, the City Council certified the Final Environmental Impact for the Land Use and
Circulation Element Update, which analyzed the annexation of the Fiero Lane-Clarion
Court area as it relates to potential environmental impacts associated with build-out of the
General Plan. Based on these analyses, no significantly changed circumstances have
occurred within the subject area since 2015 that would affect the analysis and conclusions
of the approved 2015 Addendum.
2. The proposed project, as conditioned herein, is consistent with the requirements of the
certified Airport Area and Margarita Area Specific Plans and Related Facilities Master
Plans Final Environmental Impact Report (FEIR) (SCH# 2000051062) and approved
Addendum to the certified FEIR, and this action incorporates those FEIR mitigation
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measures as detailed herein.
3. A supplemental, tiered, Initial Study has been prepared for the project, which addresses
potential environmental impacts resulting from the proposed project, and the Community
Development Director has recommended that the results of that additional analysis be
incorporated into a MND of environmental impacts, and recommends adoption of
identified mitigation measures, all of which are incorporated below.
4. The IS/MND was revised to expand identified air quality mitigation measures and to
provide clarifications regarding the incorporation of earlier analysis. The air quality
mitigation measures have been expanded to include additional more effective
requirements, which would further mitigate potential impacts. All additions and
modifications to the Initial Study provide minor clarifications and expanded discussion, all
supporting the conclusions of the publicly-circulated Initial Study/Mitigated Negative
Declaration. No new impacts have been identified. Therefore, pursuant to California
Environmental Quality Act Guidelines Section 15073.5 and Public Resources Code section
21080(f), recirculation of the Initial Study/Mitigated Negative Declaration is not required.
5. All potentially significant effects were analyzed adequately in the referenced FEIR and
IS/MND, subject to the following mitigation measures being incorporated into the project
and the mitigation monitoring program:
Air Quality
AQ-1: Naturally Occurring Asbestos. Naturally Occurring Asbestos (NOA) has been identified as
a toxic air contaminant by the California Air Resources Board (ARB). Under the ARB Air
Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface
Mining Operations, prior to any grading activities a geologic evaluation shall be conducted
to determine if NOA is present within the area that will be disturbed. If NOA is not present,
an exemption request must be filed with the District. If NOA is found at the site, the
applicant must comply with all requirements outlined in the Asbestos ATCM. This may
include development of an Asbestos Dust Mitigation Plan and an Asbestos Health and
Safety Program for approval by the APCD. More information on NOA can be found at
http://www.slocleanair.org/business/asbestos.asp.
AQ-2: Asbestos Material in Demolition. Demolition activities can have potential negative air
quality impacts, including issues surrounding proper handling, demolition, and disposal of
asbestos containing material (ACM). Asbestos containing materials could be encountered
during demolition or remodeling of existing buildings. Asbestos can also be found in utility
pipes/pipelines (transite pipes or insulation on pipes). If utility pipelines are scheduled for
removal or relocation or a building(s) is proposed to be removed or renovated, various
regulatory requirements may apply, including the requirements stipulated in the National
Emission Standard for Hazardous Air Pollutants (40CFR61, Subpart M - asbestos
NESHAP). These requirements include but are not limited to: 1) notification to the APCD,
2) an asbestos survey conducted by a Certified Asbestos Inspector, and, 3) applicable
removal and disposal requirements of identified ACM. More information on Asbestos can
be found at http://www.slocleanair.org/business/asbestos.php.
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AQ-3: Developmental Burning. APCD regulations prohibit developmental burning of vegetative
material within San Luis Obispo County.
AQ-4: Permits. Portable equipment and engines 50 horsepower (hp) or greater, used during
construction activities will require California statewide portable equipment registration
(issued by the ARB) or an Air District permit. The following list is provided as a guide to
equipment and operations that may have permitting requirements, but should not be viewed
as exclusive: power screens, conveyors, diesel engines, and/or crushers; portable
generators and equipment with engines that are 50 hp or greater; internal combustion
engines; unconfined abrasive blasting operations; concrete batch plants; rock and pavement
crushing; tub grinders; and, trommel screens.
AQ-5: Standard Mitigation Measures for Construction Equipment. The standard mitigation
measures for reducing nitrogen oxides (NOx), reactive organic gases (ROG), and diesel
particulate matter (DPM) emissions from construction equipment are listed below. All
projects with diesel-powered construction activity shall comply with Section 2485 of Title
13 of the California Code of regulations and the 5-minute idling restriction identified in
Section 2449(d)(2) of the California Air resources Board’s In-Use Off-Road Diesel
regulation to minimize toxic air pollution impacts from idling engines.
a. Maintain all construction equipment in proper tune according to manufacturer’s
specifications;
b. Fuel all off-road and portable diesel powered equipment with ARB certified motor
vehicle diesel fuel (non-taxed version suitable for use off-road);
c. Use diesel construction equipment meeting ARB's Tier 2 certified engines or cleaner
off-road heavy-duty diesel engines, and comply with the State off-Road Regulation;
d. Use on-road heavy-duty trucks that meet the ARB’s 2007 or cleaner certification
standard for on-road heavy-duty diesel engines, and comply with the State On-Road
Regulation;
e. Construction or trucking companies with fleets that that do not have engines in their
fleet that meet the engine standards identified in the above two measures (e.g. captive
or NOx exempt area fleets) may be eligible by proving alternative compliance;
f. All on and off-road diesel equipment shall not idle for more than 5 minutes. Signs shall
be posted in the designated queuing areas and or job sites to remind drivers and
operators of the 5 minute idling limit;
g. Diesel idling within 1,000 feet of sensitive receptors is not permitted;
h. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors;
i. Electrify equipment when feasible;
j. Substitute gasoline-powered in place of diesel-powered equipment, where feasible;
k. Signs that specify no idling areas must be posted and enforced at the site;
l. Use alternatively fueled construction equipment on-site where feasible, such as
compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel.
AQ-6: Best Available Control Technology (BACT) for Construction Equipment. If the estimated
ozone precursor emissions from the actual fleet for a given construction phase are expected
to exceed the APCD threshold of significance after the standard mitigation measures are
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factored into the estimation, then BACT needs to be implemented to further reduce these
impacts. The BACT measures can include:
a. Further reducing emissions by expanding use of Tier 3 and Tier 4 off-road and 2010
on-road compliant engines;
b. Repowering equipment with the cleanest engines available; and
c. Installing California Verified Diesel Emission Control Strategies. These strategies are
listed at: http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm
AQ-7: Fugitive Dust Mitigation Measures. Projects with grading areas that are less than 4 acres
and that are not within 1,000 feet of any sensitive receptor shall implement the following
mitigation measures to manage fugitive dust emissions such that they do not exceed the
APCD’s 20% opacity limit (APCD Rule 401) or prompt nuisance violations (APCD Rule
402) in order to minimize nuisance impacts and to significantly reduce fugitive dust
emissions:
a. Reduce the amount of the disturbed area where possible;
b. Use of water trucks or sprinkler systems, in sufficient quantities to prevent airborne
dust from leaving the site and from exceeding the APCD’s limit of 20% opacity for
greater than 3 minutes in any 60-minute period. Increased watering frequency would
be required whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water
should be used whenever possible. Please note that during drought conditions, water
use may be a concern and the contractor or builder shall consider the use of an APCD-
approved dust suppressant where feasible to reduce the amount of water used for dust
control (contact the APCD for a list of potential dust suppressants);
c. All dirt stock-pile areas should be sprayed daily as needed;
d. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as
possible, and building pads should be laid as soon as possible after grading unless
seeding or soil binders are used;
e. All of these fugitive dust mitigation measures shall be shown on grading and building
plans; and
f. The contractor or builder shall designate a person or persons whose responsibility is to
ensure any fugitive dust emissions do not result in a nuisance and to enhance the
implementation of the mitigation measures as necessary to minimize dust complaints
and reduce visible emissions below the APCD’s limit of 20% opacity for greater than
3 minutes in any 60-minute period. Their duties shall include holidays and weekend
periods when work may not be in progress (for example, wind-blown dust could be
generated on an open dirt lot). The name and telephone number of such persons shall
be provided to the APCD Compliance Division prior to the start of any grading,
earthwork or demolition (Contact Tim Fuhs at 805-781-5912).
g. Projects with grading areas greater than 4 acres or within 1,000 feet of any sensitive
receptor shall implement the measures above, in addition to the following additional
mitigation measures to manage fugitive dust emissions such that they do not exceed
the APCD’s 20% opacity limit (APCD Rule 401) or prompt nuisance violations (APCD
Rule 402):
1) Permanent dust control measures identified in the approved project revegetation
and landscape plans should be implemented as soon as possible, following
completion of any soil disturbing activities;
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2) Exposed ground areas that are planned to be reworked at dates greater than one
month after initial grading should be sown with a fast germinating, non-invasive
grass seed and watered until vegetation is established;
3) All disturbed soil areas not subject to revegetation should be stabilized using
approved chemical soil binders, jute netting, or other methods approved in advance
by the APCD;
4) Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved
surface at the construction site;
5) All trucks hauling dirt, sand, soil, or other loose materials are to be covered or
should maintain at least two feet of freeboard (minimum vertical distance between
top of load and top of trailer) in accordance with California Vehicle Code (CVC)
Section 23114;
6) “Track-Out” is defined as sand or soil that adheres to and/or agglomerates on the
exterior surfaces of motor vehicles and/or equipment (including tires) that may then
fall onto any highway or street as described in CVC Section 23113 and California
Water Code 13304. To prevent ‘track out’, designate access points and require all
employees, subcontractors, and others to use them. Install and operate a ‘track-out
prevention device’ where vehicles enter and exit unpaved roads onto paved streets.
The ‘track-out prevention device’ can be any device or combination of devices that
are effective at preventing track out, located at the point of intersection of an
unpaved area and a paved road. Rumble strips or steel plate devices need peri odic
cleaning to be effective. If paved roadways accumulate tracked out soils, the track-
out prevention device may need to be modified;
7) Sweep streets at the end of each day if visible soil material is carried onto adjacent
paved roads. Water sweepers shall be used with reclaimed water where feasible.
Roads shall be pre-wetted prior to sweeping when feasible.
Air Quality Monitoring Program: These conditions shall be noted on all project grading and
building plans. The applicant will also be required to comply with existing regulations and secure
necessary permits from the Air Pollution Control District (APCD) before the onset of grading or
demolition activities including, but not limited to additional dust control measures, and evaluation
for Naturally Occurring and Material Containing Asbestos. The applicant shall present evidence
of a plan for complying with these requirements prior to issuance of a grading or building permit
from the City. The applicant shall provide the City with the name and telephone n umber of the
person responsible for ensuring compliance with these requirements. The Building Inspector and
Community Development and Public Works Inspectors shall conduct field monitoring.
Cultural Resources and Tribal Cultural Resources
CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or
paleontological resources are unearthed or discovered during any construction activities,
the following standards apply:
a. Construction activities shall cease, and the Environmental Coordinator and Planning
Department shall be notified so that the extent and location of discovered materials may
be recorded by a qualified archaeologist, and disposition of artifacts may be
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accomplished in accordance with state and federal law, and in consultation with local
Native American tribal organizations.
b. In the event archaeological resources are found to include human remains, or in any
other case where human remains are discovered during construction, the County
Coroner is to be notified in addition to the Planning Department and Environmental
Coordinator so that proper disposition may be accomplished.
Cultural Resources and Tribal Cultural Resources Monitoring Program: Requirements for
cultural resource mitigation, in the event of unforeseen encounter of materials during the potential
relocation of the wastewater treatment facility, shall be clearly noted on all plans for project
grading and construction. Compliance will be verified by the Community Development Director.
SECTION 3. Actions. The City Council hereby:
1. Authorizes the filing of an application for annexation of the Fiero Lane-Clarion Court area
and directs the Community Development Director to process the application with San Luis
Obispo Local Agency Formation Commission (LAFCo).
2. Requests that LAFCO accept the application for annexation and initiate proceedings for
annexation to Title 5, Division 3, Part 3 of the Cortese- Knox-Hertzberg Local Government
Reorganization Act of 2000, California Government Code Section 56000, et. seq.
3. Authorizes the City Manager to execute any documents in a form approved by the City
Attorney related to the annexation of the subject lands to the City of San Luis Obispo.
4. Approves the Second Amendment to the Memorandum of Agreement for the Annexation
of the Fiero Lane/Clarion Court area (attached hereto as Exhibit A and incorporated herein
by this reference), which incorporates conditions of annexation as recommended by the
Planning Commission of the City of San Luis Obispo.
5. Authorizes the Mayor to execute Second Amendment to the Memorandum of Agreement
between the City and the Fiero Lane Water Company attached hereto as Exhibit A and
incorporated herein by this reference.
6. Authorizes the City Manager to initiate property tax negotiations with the County of San
Luis Obispo.
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7. Authorizes the City Manager to execute any documents in a form approved by the City
Attorney related to the annexation of the subject lands to the City of San Luis Obispo.
Upon motion of _______________________, seconded by _______________________ and on
the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ____ day of ___________, 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ____________ day of ___________________, ___________.
____________________________________
Teresa Purrington
City Clerk
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ANNEXATION NO. TO THE CITY OF SAN LUIS OBISPO
LEGAL DESCRIPTION
All that property in the County of San Luis Obispo, State of California, described as
follows:
Beginning at the intersection of the north line of Lot 1 of Tract 2339 per the map of
said Tract No. 2339, filed July 17, 2000 in Book 19, Page 25 of Maps, in the Office of
the County Recorder of San Luis Obispo County, with the east line of the Offer of
Dedication for Santa Fe Road Right of Way and Clarion Court according to said map,
also being a point on the San Luis Obispo City Limits Line according to Annexation
No. 77 to the City of San Luis Obispo (Airport/Margarita), a found nail and tag
stamped LS 6192 in top of concrete curb bears North 81 °27'20" West 7.08 feet per
said map ( see certificate of correction 2001-084 714 of Official Records for the
description of the monument) ;
Thence, leaving the existing City Limit Line, along the easterly line of said Offer of
Dedication the following 5 courses:
South 00 °02'18" East 217.22 feet to the beginning of a curve concave to the
northeast, having a radius of 23.00 feet;
Thence, southeasterly along the arc of said curve, through a central angle of
89 °59'54" a distance of 36.13 feet;
Thence, South 00 °02'18" East 50.00 feet to the beginning of a non-tangent
curve concave to the southeast, having a radius of 23.00 feet to which a radial
line bears North 00 °02'23" West;
Thence, southwesterly along the arc of said curve, through a central angle of
89°59'55" a distance of 36.13 feet;
Thence, South 00 °02'18" East 104.42 feet to the south line of said Lot 1 and the north
line of Parcel 2 of Parcel Map COAL-87-311 per the map , filed July 17, 2000 in Book
45, Page 2 of Parcel Maps, in the Office of the County Recorder of San Luis Obispo
County;
Thence along said north line North 89 °45'25" West 7.00 feet to the east line of the 25
foot Offer of Dedication shown as per 3082/0R/239 on said Parcel Map, being a line
that is parallel with and offset 25 feet easterly from the centerline of Santa Fe Road;
Thence along said line South 00°02'18" East 256.88 feet to the south line of said
Parcel 2;
Thence along said line South 89 °42'47" East 484.05 feet to a%" iron pipe with tag LS
5201 marking the northwest corner of Parcel 2 of Lot Line Adjustment COAL 91-141
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according to Document No. 1995-033401 in the Office of the County Recorder of San
Luis Obispo County;
Thence along the west line of said Parcel 2 South 00 °02'24" East 247.52 feet to a%"
iron pipe with tag LS 5201 marking the southwest corner of said Parcel and an angle
point of the easterly line of Parcel 1 of said Lot Line Adjustment according to
Document No. 1995-033403 in the Office of the County Recorder of San Luis Obispo
County;
Thence along said easterly line North 89 °41'30" West 7.72 feet to a%" iron pipe with
tag LS 5201;
Thence continuing along said easterly line South 00 °07'14" West 46.95 feet to the
northerly corner of the land described in the Grant Deed to the County of San Luis
Obispo, a Public Entity in the State of California, recorded February 27, 2009 as
Document No. 2009009610 of Official Records in the Office of the County Recorder of
said County;
Thence along the northeasterly line of said land South 55 °02'36" East 380.15 feet to
the easterly corner of said land and the south line of Parcel A of Parcel Map COAL
83-24 per the map, filed March 21, 1985 in Book 37, Page 7 of Parcel Maps, in the
Office of the County Recorder of San Luis Obispo County
Thence along said line and along the south line of Parcel B of said Parcel Map South
86 °13'13" East 508.01 feet to the intersection with the east line of the 15 foot wide
strip of land shown as a 15' wide take per 365 OR. 44 on said Parcel Map;
Thence South 65°56'21" East 16.21 feet to the most westerly corner of Parcel 1 of
Parcel Map CO 89-319 per the map, filed April 4, 2000 in Book 54, Page 61 of Parcel
Maps, in the Office of the County Recorder of San Luis Obispo County, also being a
point on the San Luis Obispo City Limits Line according to Annexation No. 65 to the
City of San Luis Obispo;
Thence said along San Luis Obispo City Limits Line and along the westerly line of
said Parcel 1, North 00 °17'38" East 273.93 feet to the southerly corner of Lot 6 of
Tract No. 712 per the map of said Tract No. 712, filed October 27, 1980 in Book 10,
Page 49 of Maps, in the Office of the County Recorder of San Luis Obispo County;
Thence along the southeasterly line of said Tract No. 712 North 67 °16'44" East
1282.02 feet to the easterly corner of Lot 9 of said Tract being on the southwesterly
Right of Way line of Broad Street (State Highway 227) and the San Luis Obispo City
Limits Line according to Annexation No. 53 to the City of San Luis Obispo and a
curve concave to the northeast having a radius of 3555.00 feet, to which a radial line
bears South 57°35'34" West;
Thence along the southwesterly Right of Way line of Broad Street (State Highway
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227), said San Luis Obispo City Limits Line, and the northeasterly line of said Tract
No. 712 northwesterly along the arc of said curve through a central angle of
10 °23'57" a distance of 645.23 feet to the northerly corner of Lot 1 of said Tract No.
712;
Thence continuing along the southwesterly Right of Way line of Broad Street (State
Highway 227) and said San Luis Obispo City Limits Line northwesterly along the arc
of said curve through a central angle of 00 °54'42" a distance of about 56.57 feet;
Thence continuing along the southwesterly Right of Way line of Broad Street (State
Highway 227) and said San Luis Obispo City Limits Line North 21 °15'47" West
100.70 feet to the most easterly corner of Parcel 1 of that property described in
Document No. 26918 as recorded in Book 3308, Page 338 of Official Records in the
Office of the County Recorder of said County, shown as Parcel A on the map filed in
Book 36 page 55 of Licensed Surveys in the Office of the County Recorder of said
County being on the San Luis Obispo City Limits Line according to Annexation No.
66;
Thence along the southerly line of said Parcel A and said San Luis Obispo City Limits
Line South 53°25'25" West 252.89 feet to angle point in said line;
Thence continuing along the southerly line of said Parcel A and said San Luis Obispo
City Limits Line South 87 °59'35" West 288.60 feet to the southwest corner of said
Parcel A being a point on the southerly line of Lot 79 of said San Luis Obispo Suburban
Tract and being on the San Luis Obispo City Limits Line according to Annexation No.
77;
Thence continuing along the southerly line of Lots 79, 58, and 59 of the San Luis
Obispo Suburban Tract and along the San Luis Obispo City Limits Line according to
Annexation No. 77 South 87 °59'35" West 173.47 feet to an angle point therein;
Thence, continuing along said line, South 71 °17'07" West 582.37 feet to an angle point
therein;
Thence, continuing along said line, North 89 °29'06" West 309.04 feet to an angle point
therein;
Thence, continuing along said line, North 81 °27'20" West 616.52 feet to the point of
beginning. Containing 48.21 acres more or less.
d of legal description
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612 Clarion Court
SAN LUIS OBISPO, CA 93401
T 805 544-4011
F 805 544-4294
www.wallacegroup.us
EXHIBIT 8
ANNEXATION No.
TO THE CITY OF ---
SAN LUIS OBISPO.CA
JOB No.: 376-01-19
DRAWING :fiero annx
DRAWN BY: GM
DATE: 8/17/2016
Sheet 1 of 2
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612 Clarion Court
SAN LUIS OBISPO, CA 93401
T 805544-4011
F 805 544-4294
www.wallacegroup.us
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ANNEXATION No.
TO THE CITY OF
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SAN LUIS OBISPO.CA
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SCALE
100 200 400
1 INCH = 200 FEET
JOB No.: 376-01-19
DRAWING :fiero annx
DRAWN BY: GM
DATE: 8/17/2016
Sheet 2 of 2
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Fiero Lane/Clarion Court Annexation
Plan for Services – March 2016
Contents:
1. Law Enforcement
2. Fire Protection (Including Paramedic and Ambulance)
3. Parks and Recreation
4. Streets and Paths
5. Public Transit
6. Solid Waste and Recycling
7. Government Services, Development Review and Code Enforcement
8. Water and Wastewater
9. Storm Drainage
10. Affordable Housing
1. Law Enforcement
The San Luis Obispo Police Department provides a variety of law enforcement and
community services. Police services are based at 1042 Walnut at the intersection of
Santa Rosa (Highway 1) and Highway 101. The Department consists of 90 employees,
62 of which are sworn police officers. This results in a ratio of about 1.4 officers-per-
1000 residents. However, the City of San Luis Obispo is an employment center, so the
daytime population of the City’s urban area increases by about 30,000 people per day
over its resident population. Thus, the officers-per resident ratio can be a misleading
descriptor of service level.
The Department is divided into two police bureaus, with a Police Captain commanding
each. The Operations Bureau consists of a Patrol Services Division, a Traffic Safety Unit,
and a Situation Oriented Response Team, and Neighborhood Services. The majority of
the Operations Bureau resources are devoted to patrol services and traffic safety. The
Administrative Services Bureau consists of Administrative Services Division,
Investigative Division, Communications Division, Records Unit, and Information
Services Unit. This bureau provides services essential to law enforcement in the City and
the effective use of the Operations Bureau resources. According to the Safety Element of
the City’s General Plan, the Department has a 30% available-time objective for patrol
officers. Available time is the portion of time that a patrol unit is not already on call or
otherwise unavailable to respond to a new emergency call for service. The level of
service in the annexed territory is the same as in the rest of the city.
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The Airport Area Specific Plan indicates that the proposed annexation will drive the need
for additional personnel and equipment to maintain the current level of service and meet
the available-time objective for patrol response. The Specific Plan also indicates the
potential need for a police substation/work area with urbanization of the area.
Resources are allocated to the Police Department through the City’s 2-year budget and
financial plan process. Requests for additional resources are weighed against other
potential uses of the City’s general fund. The City expected that service demands and
revenues both would increase upon annexation of the Airport Area. Increased service
demands will continue approximately in proportion to the amount of new development in
the area at a gradual pace over several years.
The level of service provided to the Fiero Lane/Clarion Court Annexation Area will be
the same as provided to the rest of the Specific Plan Area.
2. Fire Protection (Including Paramedic and Ambulance)
The City of San Luis Obispo Fire Department provides emergency and non-emergency
fire protection services in the City. Emergency services include fire response, emergency
medical response, hazardous materials response, and public assistance. Non-emergency
services include fire and life safety inspections, building inspections, building plan
checks, fire code investigations, arson investigations, and public education. Additionally,
the SLOFD is a member of a countywide team that responds to hazardous materials
incidents throughout the County.
The Fire Department operates 4 fire stations and has a firefighter/population ratio of
approximately 1 firefighter per 1,000 residents. Headquarters (Fire Station #1) is located
on the corner of Broad Street and South Street, Fire Station #3 is located at 1280 Laurel
Lane, and Fire Station #4 is located at the corner of Madonna and Los Osos Valley Road.
County Fire Station #21, which is located on the runway, provides for airport crash fire
rescue services. This station also provides emergency response services for a rather large
rural area. The City currently maintains a mutual aid agreement with Calfire to allow this
station to respond to matters within the airport area.
The Airport Area Specific Plan indicates that upon annexation of the plan area, the
Department’s minimum staffing level may need to be increased. In addition, because of
increased population and the increased potential hazards of the industrial area, the City
may need to add additional inspectors to augment existing staff.
The proximity of these stations to the Airport Area provide for emergency response times
of 4 minutes or less. The Fire Department’s standard of coverage recommends that a
three-person engine company, with paramedic, meet this standard 95 percent of the time.
All SLOFD engine companies (first responders during an emergency call) include at least
one paramedic.
In 2013, the Chevron EIR evaluated development and annexation of the Chevron
property and therefore evaluated the potential for fire department operational needs. The
EIR concluded that the majority of the Airport area is not within the City’s desired 4-
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minute response time. However, this response time may be enhanced by the completion
of circulation improvements including the completion of Prado Road, Santa Fe Road, and
the widening of Tank Farm Road. Even with these improvements planned for the future,
the EIR concluded mitigation is necessary to achieve the City’s policy objectives for
response time (Safety Element Policy 10.3).
These mitigation measures are incorporated into the AASP as follows:
Policy 7.9.1: Adequate Fire Suppression Services and Facilities
The City shall provide adequate fire suppression services and facilities to the Airport Area, consistent
with the Safety Element of the General Plan, by completing area transportation improvements, co-
locating City fire services with existing CAL-Fire facilities located on Broad Street, and/or establishing
a permanent facility within the Airport Area.
Policy 7.9.2: Fire Station Location and Site Dedication
During the first phase of development of the Chevron Tank Farm site, property that is suitable for the
development of a new fire station shall be deeded to the City, to the approval of the Fire Chief.
Policy 7.9.3: Interim Safety Improvements
Until a permanent facility is developed that enables the City to achieve its response time objectives,
new development in the Airport Area may be required to finance other improvements that will
contribute to alleviating current deficiencies, as identified in the San Luis Obispo Fire Department
Master Plan (2009). This policy will be implemented on a case by case basis through conditions of
approval when project specific fire and life safety impacts are identified.
The proposed annexation was anticipated by the Airport Area Specific Plan. The Specific
Plan indicates that development of the plan will drive the need for additional personnel,
including firefighters and inspectors, to maintain the current level of service.
Resources are allocated to the Fire Department through the City’s 2-year budget and
financial plan process. Requests for additional resources are weighed against other
potential uses of the City’s general fund. The City expects that service demands and
revenues both will increase upon annexation. Increased service demands will continue
approximately in proportion to the amount of new development in the area at a gradual
pace over several years.
The level of service provided to the Fiero Lane/Clarion Court Annexation Area will be
the same as provided to the rest of the Specific Plan Area.
3. Parks and Recreation
The proposed annexation area is already developed and no additional development is
proposed at this time. The area does not include parkland because no residential
neighborhoods are proposed.
4. Streets Maintenance and Development
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The proposed annexation boundaries have been created in consideration of the City’s
ability to maintain public infrastructure within the annexation area. The City’s Pavement
Management Plan was originally adopted in 1998 and provides the framework for the
City’s maintenance program. The heart of the program is computer software that
analyzes the conditions of various street segments via special algorithms and then makes
maintenance recommendations according to the available budget. The City has purchased
MicroPaver, a program originally written by the Army Corps of Engineers to maintain
military bases. This program is made available to the public via the American Public
Works Department and the University of Illinois. It is continually updated and
maintained by the Corps and is in use throughout the United States and worldwide.
Within the annexation area, existing public streets will be upgraded to City standards by
the applicant and accepted by the City for maintenance upon completion of the upgrades.
Maintenance of existing streets within the annexed territory will be accomplished by
incorporating the streets into the pavement management program.
5. Public Transit
Currently the nearest bus route (Route 3) is located about 1,500 feet north of the
annexation area and the City’s Transportation Division is in the process of expanding
said route. No development is proposed in the annexation area, however, as development
occurs in the Airport Area, the potential for new or expanded bus routes will be evaluated
in accordance with the potential routes identified in the specific plans. New development
is responsible for providing transit facilities, such as turnouts, shelters and in some cases,
smart signs that indicate how soon the next bus will arrive.
6. Solid Waste and Recycling
The City of San Luis Obispo contracts with San Luis Garbage Company for garbage,
green waste and recycling services. San Luis Garbage disposes of solid waste at the Cold
Canyon Landfill, which is a regional facility. San Luis Garbage also serves commercial
and residential properties within the City’s urban reserve and no change in service is
expected for annexed properties.
The City also runs a construction and demolition debris recycling program (Municipal
Code Chapter 8.05). The goal of the program is to divert the bulk of the materials
generated from projects within the City of San Luis Obispo from the landfill and thus,
extend the landfill’s lifespan. Construction and demolition debris materials represent a
significant percentage of the City’s solid waste stream, with current estimates at 25
percent of the total tonnage. The program helps the City meet State-mandated
requirements for solid waste reduction.
7. Municipal Services, Development Review and Code Enforcement
The City of San Luis Obispo will provide for municipal services within the annexed
territory such as elections, public notices, development review, building permits and
inspections, subdivision review, permitting and inspecting public improvements, and
code enforcement. San Luis Obispo City government will provide for development
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review of all new development projects in accordance with the Airport Area Specific
Plan, and will coordinate with the County of San Luis Obispo with respect to on-going
construction projects and active construction permits. Code enforcement activities are
provided by full-time staff in the Community Development Department, in coordination
with the Police Department and the City Attorney’s Office. Government services are
based at City Hall, 990 Palm Street, San Luis Obispo.
8. Water and Wastewater
According to water metering records from the Fiero Lane Water Company (FLWC),
annual water demand for the Fiero Lane/Clarion Court annexation area is 8,293
units/year or 19 acre feet per year for both indoor and outdoor landscape use. The Airport
Area Specific Plan and the City’s General Plan anticipated the water demand to serve this
annexation and adequate water supplies are available to serve the build out of the City’s
General Plan.
The City has existing 12-inch potable water mains on Broad Street and Aerovista. For
interim service, a water meter is proposed to be located on Aerovista with a future
permanent meter location at Broad Street and Fiero Lane. The annexation area is in the
City’s Water Reuse Master Plan area and will be served with recycled water for
landscape irrigation in the future when the recycled water distribution system is extended
south on Broad Street.
Wastewater generation for the annexation area, including the 500,123.5 square feet of
developed area, is approximately 15,000 gallons per day. Connection to the City’s gravity
sewer is proposed to be located at the end of Fiero Lane (existing County-owned gravity
main carrying flow from the Airport) to the City’s Airport lift station. The Airport lift
station pumps flow to a gravity main on Broad Street that extends west on Tank Farm
Road to the Tank Farm lift station. Both facilities have capacity to serve the proposed
annexation.
Some parcels within the proposed annexation area are served by existing septic tanks.
Properties that receive access from Santa Fe Road will continue to use septic systems.
Properties remaining on septic tanks will be allowed to remain on septic until the system
fails or substantial additions or redevelopment of the property is proposed. At the time of
failure or substantial increase in development, those properties will be required to
connect to the sewer system.
In 2015, average flow to the City’s Water Resource Recovery Facility was 3.5 million
gallons per day (mgd). Design capacity of the WRRF is 5.1 mgd and the planned upgrade
to the facility will increase its capacity to 5.4 mgd. Adequate capacity is available at the
facility to serve the proposed annexation.
9. Storm Drainage
On-site flooding and the potential for increased downstream flooding have restricted
development potential in the Airport area. When considering how to address storm
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drainage in the area, a number of objectives are identified in the Airport Area Specific
Plan. These include:
Use the City’s Drainage Design Manual and Waterways Management Plan as the
basis for all detention requirements in the Specific Plan area.
Provide a method for flood protection consistent with the City’s Flood Damage
Prevention Regulations.
Maximize the opportunity for environmental enhancement of stream corridors and
stormwater detention and conveyance facilities.
Minimize capital expenditures.
Provide opportunities for multiple-use of storm drainage facilities.
Initially, an area-wide drainage solution was envisioned for the Airport Area. This
solution was referred to as the Storm Drain Master Plan and relied on significant creek
channel modifications to keep storm flows within existing creek channels, modified
natural channels, and in man-made by-pass channels. A regional detention basin south of
Buckley Road was proposed to detain water and prevent downstream flooding. After this
solution was developed, the City’s Waterwa ys Management Plan was approved, which
includes a Drainage Design Manual with standards for on-site storm water detention.
Once it became evident that the costs of the original Storm Drain Master Plan were
prohibitive, the Storm Drain Master Plan was revised to allow for on-site detention of
storm flows, consistent with the Drainage Design Manual.
The following proposed improvements and development requirements comprise the
revised Storm Drain Master Plan for the Airport Area, and also improve the upstream
situation in the Margarita Area:
1. Remove and replace existing Acacia Creek Bridge at Tank Farm Road with a
standard Caltrans 2-span concrete slab bridge.
2. Remove and replace existing East Branch San Luis Obispo Creek Bridge at Santa
Fe Road with a standard Caltrans 2-span concrete slab bridge.
3. Remove and replace the existing Tank Farm Creek culvert facilities at Tank Farm
Road with a standard Caltrans 2-span concrete slab bridge.
4. Apply the requirements of the City’s Floodplain Management Regulations to
proposed development within the Airport Area.
5. Apply the requirements of the City’s Waterways Management Plan, Drainage
Design Manual to proposed development within the Airport Area.
These proposed improvements, along with implementation of existing City-wide
ordinances and requirements are expected to provide 100-year flood protection and
provide for environmental enhancement of stream corridors. The analytical methods
outlined in the Waterway Management Plan, Drainage Design Manual will be used to
assist in the future design of flood control improvements.
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10. Affordable Housing
The proposed annexation area is currently developed with commercial structures/existing
commercial uses and no new development is proposed as part of this application.
Affordable housing would be required if new development is proposed in the future. Per
the City’s Inclusionary Housing Requirement (Zoning Regulations Chapter 17.91), any
new commercial projects that include over 2,500 square feet of floor area must provide
affordable housing or pay in-lieu fees. The requirement is two affordable dwelling units
per acre of land, or payment of an in-lieu fee equal to 5% of building valuation. The City
uses the fees collected for affordable housing projects that meet eligibility criteria as
specified by Council resolution.
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INITIAL STUDY
ENVIRONMENTAL CHECKLIST FORM
For EID-0626-2019
1.Project Title: Fiero Lane and Clarion Court Annexation
2. Lead Agency Name and Address:
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
3. Contact Persons and Phone Number:
David Watson, Contract Planner
dave@watsonplanning.us (805) 704-8728
Shawna Scott, Senior Planner
sscott@slocity.org (805) 781-7176
4. Project Location:
The approximately 39-acre proposed annexation area is located on the west side of Broad Street,
approximately one-quarter mile south of Tank Farm Road. The site consists of 30 existing
parcels located along Fiero Lane, Clarion Court, and a portion of Santa Fe.
5. Project Sponsor’s Name and Address:
Matt Quaglino Fiero Lane Water Company
President, Fiero Lane Water Company c/o Rob Miller, PE
c/o Quaglino Properties Wallace Group
815 Fiero Lane 612 Clarion Court
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
6.General Plan Designation:
Current County of San Luis Obispo General Plan Designation: Commercial Service and
Industrial Land Use Categories
City of San Luis Obispo Proposed General Plan Designations: Business Park and Services &
Manufacturing (consistent with the Airport Area Specific Plan, Figure 4-1 Land Use
Designations)
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7. Zoning:
Proposed: Business Park (BP), Service Commercial (CS), and Manufacturing (M) (consistent
with the Airport Area Specific Plan, Figure 4-4 Zoning Designations)
Figure 2: Project Vicinity Map
Project location
Figure 1: Regional Location
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Description of the Project:
The Proposed Project includes annexation of approximately 39 acres of property into the City of
San Luis Obispo. The proposed annexation area is comprised of 30 parcels located in the vicinity
of Fiero Lane and Clarion Court, near the San Luis Obispo Regional Airport (Reference Source
1, Fiero Lane-Clarion Court Proposed Annexation Area). The Fiero Lane-Clarion Court
annexation and service area is located within the Airport Area Specific Plan (AASP) located
generally in and around 850 Fiero Lane, San Luis Obispo, California 93401. Approximately 90
percent of the properties within the annexation area are developed with businesses currently
operating under San Luis Obispo County regulations.
The subject area is identified in a previously approved 2015 Memorandum of Agreement (MOA)
between the City and the Fiero Lane Water Company (FLWC) that provides (i) interim water
and wastewater services to the Fiero Lane and Clarion Court properties located in the Fiero Lane
Annexation area west of Broad Street, and (ii) provides for annexation of these properties into
the City of San Luis Obispo. A First Amendment to this MOA was approved by the City Council
on March 19, 2019, which allowed additional time (one year) to complete the application
submittal and processing of the annexation with the San Luis Obispo County Local Agency
Formation Commission (LAFCO). In 2015 the City Council adopted Resolution No. 10678,
which provided for the two phases of the project, as summarized below:
Phase 1 (Memorandum of Agreement):
This phase included an interim hookup to City water and sewer facilities after initial Council and
LAFCO authorization. The physical changes to the City’s infrastructure system were limited to
the following:
Disconnection from the FLWC Wastewater Treatment Plant (WWTP).
Sewer system connection for the proposed annexation area, including approximately 30
feet of temporary sewer force main construction in existing disturbed street areas.
Potable water system connection for the proposed annexation area at a single point,
including minor temporary pipeline construction in existing disturbed areas.
Phase 2: (Annexation):
During this phase, City and FLWC staff have defined the detailed improvements required for
permanent connections to City systems. During Phase 2, improvements would include:
Decommissioning of the existing WWTP, including potential relocation of required plant
equipment to the East Airport area (refer to description of wastewater alternatives below,
under Plan for Services).
Installation of new water meters
Installation of recycled water main on Broad Street
Reconfiguration of sewer laterals along Fiero Lane to connect to the existing airport
gravity sewer
Pavement rehabilitation and sidewalk repairs within Fiero Lane
Other improvements identified in the MOA between the City and FLWC
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Plan For Services
The proposed annexation area has been analyzed to identify their impact on overall City services.
To document this analysis and the recommendations derived from that analysis, a Plan For
Services has been developed and adopted in 2015 for the FLWC annexation area. A summary of
the Plan for Services is included below.
Current Conditions – Fiero Lane-Clarion Court Annexation Area. Fiero Lane and Clarion
Court provide vehicular access to the area. These roads do not intersect; each is a cul-de-sac
dead end. Fiero Lane access comes from Broad Street and Clarion Court is accessed via Santa
Fe Road. At this time the Santa Fe Bridge facility is not intended to be annexed. No
improvements to the bridge are identified with this action. Domestic water is delivered by the
City via the water distribution system from Broad Street along Aero Vista Lane to the water
holding tank near the center of the annexation area. Water is distributed from the tank via
pressurized water lines installed with the original developments of the area.
Wastewater is collected by both gravity and force main/lift stations and conveyed to a private
treatment plant operated by the Fiero Lane Water Company at the end of Fiero Lane. Treated
wastewater is disposed of in a leach field system to the immediate south (and outside) the
annexation area.
Emergency services are provided by the County, but these areas are also supported by the City
under mutual aid agreements between the City and County. General government services are
provided by the County. Storm water management, collection and disposal is handled by the
private property owners under County-approved plans. Solid waste services are provided by the
County via private contract with local waste and recycling providers.
Post-Annexation Conditions – Fiero Lane-Clarion Court Annexation Area. Roadway
rehabilitation and upgrades are planned to bring the roads, walkways and street signage up to
City standards. Following annexation, the roads, curbs, gutters and sidewalks will be maintained
by the City under the Pavement Management Plan.
Water system upgrades for the annexation area will include some main line and hydrant
replacements, water meter replacements, valving and backflow prevention will be installed. The
current interim water service will become permanent under the annexation proposal.
Conversion of the Fiero Lane-Clarion Court area to the City’s wastewater system will occur
following City installation of a gravity collection line along Fiero Lane that will serve to collect
wastewater from the location of the existing Fiero Lane Water Company wastewater plant (at the
end of Fiero Lane cul-de-sac). This new City line would convey wastewater by gravity to an
existing wastewater main line in Broad Street, and from there is conveyed to the City’s Water
Resource Recovery Facility (WRRF). Until such time as this conversion occurs, the private
FLWC treatment plant and disposal system will continue to operate as currently constituted.
Much of the existing collection system within the annexation area along Clarion Court will
remain a private collection and conveyance system, ultimately sending wastewater to the City’s
new gravity main at Fiero Lane noted above. A new lift station in the vicinity of the FLWC
wastewater plant is also planned. Following the connections of the various properties in the
Fiero Lane-Clarion Court Annexation Area, the wastewater plant will be decommissioned at this
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location. It is possible this plant would be moved to the East Airport Annexation Area to serve
those users as noted earlier and briefly summarized below.
Preferred Wastewater Alternative: The FLWC wastewater system will be converted to
interconnect with a gravity collection line in Broad Street, and from there is conveyed to the
City’s WRRF. The force main and lift station currently serving the area would be abandoned.
The timing of this work is contingent on the decommissioning of the FLWC wastewater plant
following the connections of the various properties in the Fiero Lane-Clarion Court Annexation
Area.
Interim Wastewater Alternative: If annexation of the East Airport Area is delayed, or
improvements are not completed at the time of the FLWC wastewater plant decommissioning, it
is possible this treatment plant would be moved to the East Airport Annexation Area to serve
those users on an interim basis. The proposed parcel identified by FLWC is APN 076-512-028
(1275 Prospect) – this parcel is currently developed with existing FLWC facilities. In such a
case, FLWC proposes that treated wastewater would be conveyed via the lift station and force
main on the East Airport area to the existing disposal field currently serving the FLWC plant,
west of Broad Street treated wastewater would be stored and disposed as recycled water in the
East Airport Area.
Recycled water supplies are also included in the Plan For Services, with extensions made by the
applicants within the annexation area, to facilitate connection to this supply when it can be made
available.
Police and Fire emergency services would be provided by the City. It is expected the mutual aid
agreements would remain between the City and County. General government services would be
assumed by the City. Storm water management and solid waste services would continue as
presently exist.
At this time the tasks required under Phase 1 of the MOA have been completed and the
properties are now prepared to submit the annexation request to the City and LAFCO, and
implement the improvements identified in Phase 2.
Previous environmental review for this Project included the 2005 Final EIR certified for the
Airport Area and Margarita Area Specific Plans, a 2015 Addendum to this 2005 Final EIR, and
the 2014 General Plan Land Use and Circulation Element Update (LUCE) EIR. These materials
are relied on and incorporated herein for this analysis. Tiering off earlier environmental studies
is allowed by CEQA, essentially further refining impact analysis and mitigation strategies as new
or changed circumstances arise. It also allows previous work to be reaffirmed as adequate for
the review of the next stage of a given project.
8. Other public agencies whose approval is required:
San Luis Obispo County Local Agency Formation Commission (LAFCO) – interim
services agreement and annexation (Responsible Agency), Air Pollution Control District,
Regional Water Quality Control Board, County of San Luis Obispo (for re-located
wastewater treatment package plant)
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9.Have California Native American tribes traditionally and culturally affiliated with the
project area requested consultation pursuant to Public Resources code section 21080.3.1? If
so, has consultation begun?
Native American Tribes have been notified about the project consistent with City and State
regulations. The Northern Chumash Tribal Council (February 8, 2019) has noted that the
existence of development and infrastructure within the annexation area does not preclude the
presence of cultural resources.
10.Minor Clarifications to this Initial Study.
Within the 30-day public review period for the Initial Study/Mitigated Negative Declaration, the
City received a review letter from the San Luis Obispo County Air Pollution Control District
(APCD) (October 21, 2019). The APCD requested that proposed mitigation measures be
expanded to include additional more effective requirements, which would further mitigate
potential impacts resulting from the emission of diesel particulate matter and fugitive dust during
construction (impacts that were identified in the publicly-circulated Initial Study/Mitigated
Negative Declaration). No new impacts were identified by the APCD, and this Initial Study and
associated Mitigation Monitoring and Reporting Plan incorporates the mitigation requested by
the APCD.
This Initial Study also includes additional clarifications regarding earlier analysis, which expand
upon the discussion of the use of earlier documents, including the certified Final Environmental
Impact Reports for the Land Use and Circulation Element (LUCE) and Airport Area Specific
Plan (AASP). These clarifications are informational, and do not result in the identification of any
new impacts.
All additions and modifications to this Initial Study (refer to underlined text) provide additional
minor clarifications and expanded discussion, all supporting the conclusions of the publicly-
circulated Initial Study/Mitigated Negative Declaration. Therefore, pursuant to California
Environmental Quality Act (CEQA) Guidelines Section 15073.5 recirculation of the Initial
Study/Mitigated Negative Declaration is not required.
Attachments
1.Resolution No. 10678, including 2015 Memorandum of Agreement (MOA) between City and Fiero
Lane Water Company
2.Resolution No. 10994 approving the First Amendment providing for an extension to the 2015 MOA
between City and Fiero Lane Water Company
3. Fiero Lane / Clarion Court “Plan For Services”, March 2016
Refer to Council Agenda Report Attachments
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ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project, involving at
least one impact that is a “Potentially Significant Impact” as indicated by the checklist on the following
pages.
Aesthetics Greenhouse Gas Emissions Population and Housing
Agricultural Resources Hazards & Hazardous
Materials Public Services
X Air Quality Hydrology/Water Quality Recreation
Biological Resources Land Use and Planning Transportation & Traffic
X Cultural Resources Energy & Mineral Resources X Utilities and Service
Systems
Geology/Soils Noise X Tribal Cultural Resources
Mandatory Findings of
Significance
FISH AND GAME FEES
There is no evidence before the Department that the project will have any potential adverse effects on fish
and wildlife resources or the habitat upon which the wildlife depends. As such, the project qualifies for a
de minimis waiver with regards to the filing of Fish and Game Fees.
X
The project has potential to impact fish and wildlife resources and shall be subject to the payment of Fish
and Game fees pursuant to Section 711.4 of the California Fish and Game Code. This initial study has
been circulated to the California Department of Fish and Game for review and comment.
STATE CLEARINGHOUSE
X
This environmental document must be submitted to the State Clearinghouse for review by one or more
State agencies (e.g. Cal Trans, California Department of Fish and Game, Department of Housing and
Community Development). The public review period shall not be less than 30 days (CEQA Guidelines
15073(a)).
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CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
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EVALUATION OF ENVIRONMENTAL IMPACTS:
1. A brief explanation is required for all answers except “No Impact” answers that are adequately supported by the
information sources a lead agency cites in the parentheses following each question. A “No Impact” answer is
adequately supported if the referenced information sources show that the impact simply does not apply to projects
like the one involved (e.g. the project falls outside a fault rupture zone). A “No Impact” answer should be explained
where it is based on project-specific factors as well as general standards (e.g. the project will not expose sensitive
receptors to pollutants, based on a project-specific screening analysis).
2. All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well
as project-level, indirect as well as direct, and construction as well as operational impacts.
3. Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must
indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant.
"Potentially Significant Impact' is appropriate if there is substantial evidence that an effect may be significant. If
there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required.
4. “Negative Declaration: Less Than Significant With Mitigation Incorporated” applies where the incorporation of
mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact."
The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than
significant level (mitigation measures from Section 19, "Earlier Analysis," as described in (5) below, may be cross-
referenced).
5. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been
adequately analyzed in an earlier EIR or negative declaration (Section 15063 (c) (3) (D)). In this case, a brief
discussion should identify the following:
a) Earlier Analysis Used. Identify and state where they are available for review.
b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of
and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether
such effects were addressed by mitigation measures based on the earlier analysis.
c) Mitigation Measures. For effects that are “Less than Significant with Mitigation Measures Incorporated,”
describe the mitigation measures which were incorporated or refined from the earlier document and the
extent to which they addressed site-specific conditions for the project.
6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential
impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should,
where appropriate, include a reference to the page or pages where the statement is substantiated.
7. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted
should be cited in the discussion.
8. This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should
normally address the questions from this checklist that are relevant to a project’s environmental effects in whatever
format is selected.
9. The explanation of each issue should identify:
a) The significance criteria or threshold, if any, used to evaluate each question; and
b) The mitigation measure identified, if any, to reduce the impact to less than significance
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1. AESTHETICS. Would the project:
a) Have a substantial adverse effect on a scenic vista? 2,3,4,
5, 17 X
b) Substantially damage scenic resources, including, but not
limited to, trees, rock outcroppings, open space, and historic
buildings within a local or state scenic highway?
2,3,4,
5, 17 X
c) Substantially degrade the existing visual character or quality of
the site and its surroundings?
2,3,4,
5, 17 X
d) Create a new source of substantial light or glare which would
adversely affect day or nighttime views in the area?
2,3,4,
5, 17 X
Evaluation
Existing Visual Conditions. The Airport area is currently developed with a mix of light industrial and service manufacturing
uses along with contractor and professional services. Views in the Airport area include the Santa Lucia Range, Islay Hill, and
the hills located at the north end of the Margarita area that separate it from the city to the north.
a) Based on Conservation and Open Space Element Figure 11: Scenic Roadways and Vistas, there are no designed Scenic
Cones of View in or facing towards the proposed annexation area, although the section of Broad Street near the intersection
with Fiero Lane, and a section of Tank Farm Road west of Santa Fe are designated as having high scenic value. The AASP
notes that the Santa Lucia Mountains and foothills are important features in establishing the character of the Airport Area,
and AASP Chapter 5 (Community Design) includes design guidelines and performance standards, which are in place to
protect views and the area’s unique sense of place. The proposed annexation area is largely built-out and based on the
presence of existing development and mature trees within and adjacent to the annexation area, views of surrounding hills and
ridgelines are limited.
The proposed Project would allow for future development, which would be consistent and compatible with the underlying
and surrounding land use designations, based on compliance with the AASP and City standards. Implementation of the
proposed Project, including proposed infrastructure improvements, would not significantly change the existing visual
character of the project area, as the area is approximately 90 percent built-out with commercial, office, and light industrial
uses, and the zoning designations under the AASP (Business Park, Service Commercial, and Manufacturing) allow or
conditionally allow for similar uses.
The AASP Final EIR analyzed impacts related to aesthetics as a result of development of the AASP area, including the
Project site. The proposed Project supports implementation of goals and policies contained within the AASP and would be
fully consistent with both the AASP and the analysis contained in the AASP Final EIR. Therefore, this impact is considered
less than significant.
b) The affected section of State Route 227 (Broad Street) is not designed a scenic route by the California Department of
Transportation or the County of San Luis Obispo. As noted above, the City’s Conservation and Open Space Element
identifies the section of Broad Street near the intersection with Fiero Lane, and a section of Tank Farm Road west of Santa Fe
as having high scenic value. Implementation of the proposed Project would not result in the removal of any substantial trees,
rock outcroppings, or buildings of historical significance, and future development would be subject to the adopted guidelines
and performance standards identified in the AASP and the City’s Zoning Regulations and Community Design Guidelines.
Therefore, there is a less than significant impact.
c) The AASP Final EIR identified a significant and unavoidable impact (Impact LU-6: Change in Views) as a result of
buildout of the AASP area and urbanization of the south end of the City. A Statement of Overriding Considerations was
adopted upon certification of the AASP Final EIR and adoption of the AASP. As noted above, the proposed annexation area
is currently urbanized and developed with commercial, office, and light industrial uses. Future development of the Project
site would be visually compatible with the surrounding uses and would not significantly degrade the existing visual quality of
the surrounding area, because it would be consistent with existing development, and subject to adopted AASP design
guidelines and performance standards and the City’s Community Design Guidelines. The proposed site for the potentially-
relocated package wastewater treatment facility is currently developed with FLWC facilities, and would not result in a
significant visual change. Therefore, this is considered a less than significant impact.
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
11
d) Consistent with the analysis in the AASP Final EIR (Impact LU-7: Potential Increase in Daytime/Nighttime Light and
Glare), future development within the proposed annexation area would contribute to an increase in light and glare from
exterior lighting and materials. Pursuant to the AASP Final EIR and adopted AASP, future development shall comply with
lighting guidelines and standards, consistent with AASP Final EIR Mitigation Measure LU-7.1 (Incorporate Lighting Design
Standards into Margarita and Airport Area Specific Plans). In addition, future projects would comply with AASP guidelines
that discourage reflective or shiny exterior finishes (see AASP Materials and Colors, Goal 5.14, Guideline C). Future projects
would also be subject to Zoning Regulations Section 17.70.100 (Lighting and Night Sky Preservation), which requires
shielding and other methods to minimize light intrusion. Compliance with existing AASP guidelines and the Zoning
Regulations would ensure impacts related to light and glare would be less than significant.
Conclusion: Less than significant impacts. The area is designated for business park and service-manufacturing uses under
the AASP. Future development would be subject to AASP guidelines, City Community Design Guidelines, and performance
measures and standards identified in the Zoning Regulations that address aesthetics, and based on the scope of the proposed
annexation project, no additional mitigation measures beyond these identified requirements are necessary.
2. AGRICULTURE RESOURCES. Would the project:
a) Convert Prime Farmland, Unique Farmland, or Farmland of
Statewide Importance (Farmland), as shown on the maps
pursuant to the Farmland Mapping and Monitoring Program of
the California Resources Agency, to non-agricultural use?
2,4,6,
7,13 X
b) Conflict with existing zoning for agricultural use, or a
Williamson Act contract?
2,4,6,
7,13 X
c) Involve other changes in the existing environment which, due to
their location or nature, could result in conversion of Farmland,
to non-agricultural use or conversion of forest land to non-forest
use?
2,4,6,
7,13 X
Evaluation
The FEIR for the AASP analyzed the potential impact of development in the AASP (including the proposed annexation).
Consistent with the strategy of the General Plan, the specific plan aims to accommodate urban development inside the urban
reserve line while protecting land outside the urban area for open space, agricultural, and rural uses. No agricultural zoning or
lands under Williamson Act contract are present with the proposed annexation area.
a-b-c) The Proposed Project does not affect any existing or future agricultural activities. The subject service and annexation
area is not in agricultural use, is not located on lands considered prime agricultural soils, is in an area long designated for
annexation and infill development. There is no agricultural zoning or Williamson Act Contract in effect, and no grazing on
the subject site.
Conclusion: No impact.
3. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or
air pollution control district may be relied upon to make the following determinations. Would the project:
a) Conflict with or obstruct implementation of the applicable air
quality plan?
2,4,5,
11,12 X
b) Violate any air quality standard or contribute substantially to an
existing or projected air quality violation?
2,4,5,
11,12 X
c) Result in a cumulatively considerable net increase of any
criteria pollutant for which the project region is non-attainment
under an applicable federal or state ambient air quality standard
(including releasing emissions which exceed qualitative
thresholds for ozone precursors)?
2,4,5,
11,12 X
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
12
d) Expose sensitive receptors to substantial pollutant
concentrations?
2,4,5,
11,12 X
e) Create objectionable odors affecting a substantial number of
people?
2,4,5,
11,12
X
Evaluation
As discussed in the AASP FEIR, local climate conditions are generally characterized by warm, dry summers and cooler,
rainy winters. The Edna Valley in which the Fiero Lane-Clarion Court annexation area is located is generally affected by
offshore cooling conditions and airflow through the valley from Morro Bay to the north. These wind patterns change
frequently, but prevailing conditions as described have a tendency to restrict dispersion of pollutants for a matter of days
which has led to periodic higher ozone level readings. To address this, the City relies on Federal-State-County APCD quality
standards and monitoring, as well as a robust Climate Action Plan adopted by the City.
The Air Quality impacts and mitigation measures developed for the AASP and FEIR identified thresholds for ground
disturbance (such as 1,950 cu/yds per day or 4.0 acres of grading or larger) that would trigger additional environmental
review. No new private development is permitted by this annexation, and any future development post-annexation would be
subject to the AASP and the City’s Municipal Code and Zoning Regulations, which stipulate required levels of review.
Infrastructure improvements identified for the proposed annexation, including infrastructure conversions and connections to
bring private users into the City’s utility system are located within previously disturbed street rights-of-way.
To address these factors, several protocols have been imposed to address both short-term quality concerns (generally
construction-oriented emission mitigations) as well as longer-term emission reduction targets that rely on site design, traffic
management, alternative energy techniques and similar options to minimize overall air quality impacts. The annexation of the
exiting developed Fiero Lane-Clarion Court area will not materially change these existing conditions. Future development
proposed within the subject area would be required to address these requirements as individual projects are evaluated.
a) Annexation of the existing developed Fiero Lane-Clarion Court area would occur as anticipated in the AASP, and will not
materially change existing conditions. Infrastructure improvements would occur within developed roadways and utility
corridors that currently serve urban development, and would not result in an expansion of urban areas beyond what was
anticipated and analyzed in the AASP FEIR, which determined that implementation of the AASP would be consistent with
the APCD’s 1998 Clean Air Plan. While the Clean Air Plan was updated in 2001, the proposed annexation and associated
infrastructure improvements would be consistent with this plan because the Transportation and Land Use Control Measures
recommended in the 1998 plan to reduce emissions were incorporated into the attainment strategy for the 2001 Clean Air
Plan. In addition, the proposed annexation would not change the anticipated zoning and land use designations identified in
the AASP for the subject area. Therefore, the proposed project is consistent with the adopted Clean Air Plan.
b-c) Based on the APCD’s San Luis Obispo County Attainment Status table (APCD, 2019), San Luis Obispo County is in
non-attainment with California standards for ozone and respirable particulate matter. Potential short-term impacts resulting
from build-out of the AASP area (including the proposed annexation area) were determined to be less than significant based
on implementation of APCD construction emission mitigations identified in the AASP FEIR (AASP FEIR: Impact AIR-1:
Short-term Construction Impacts; Mitigation Measure AIR-1.1 Construction-related Combustion Emissions Mitigation;
Mitigation Measure AIR-1.2 Construction-Related Fugitive Dust (PM10) Mitigation; Mitigation Measure AIR-1.3
Construction-Related Activity Management Techniques). Long-term operational emissions were determined to be less than
significant (AASP FEIR: Impact AIR-2 Long-term Operation Emissions; Mitigation Measure AIR-2.1 Implement Growth-
Phasing Schedule).
Construction of infrastructure improvements would result in the short-term generation of air emissions, including ozone
precursors, reactive organic gasses, and diesel and dust particulates. In addition, ground disturbing activities and
improvements to utility infrastructure has the potential to result in exposure to naturally occurring and materials containing
asbestos. Land uses in the affected area consist of commercial, office, manufacturing, and light industrial uses, none of which
are considered sensitive uses as defined by the APCD’s CEQA Handbook. Infrastructure construction is subject to APCD
mitigation measures, and compliance with these measures would reduce potential impacts to less than significant. Relocation
of the existing wastewater treatment package plant would not result in additional operational emissions exceeding existing
conditions. Based on updates to the APCD’s CEQA Air Quality Handbook in 2012 and 2017, current mitigation measures
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
13
applicable to the infrastructure improvements are identified below, and these measures are equal or more effective than the
air quality measures previously-adopted in association with the AASP FEIR:
Mitigation Measures
AQ-1: Naturally Occurring Asbestos. Naturally Occurring Asbestos (NOA) has been identified as a toxic air contaminant by
the California Air Resources Board (ARB). Under the ARB Air Toxics Control Measure (ATCM) for Construction, Grading,
Quarrying, and Surface Mining Operations, prior to any grading activities a geologic evaluation shall be conducted to
determine if NOA is present within the area that will be disturbed. If NOA is not present, an exemption request must be filed
with the District. If NOA is found at the site, the applicant must comply with all requirements outlined in the Asbestos
ATCM. This may include development of an Asbestos Dust Mitigation Plan and an Asbestos Health and Safety Program for
approval by the APCD. More information on NOA can be found at http://www.slocleanair.org/business/asbestos.asp.
AQ-2: Asbestos Material in Demolition. Demolition activities can have potential negative air quality impacts, including
issues surrounding proper handling, demolition, and disposal of asbestos containing material (ACM). Asbestos containing
materials could be encountered during demolition or remodeling of existing buildings. Asbestos can also be found in utility
pipes/pipelines (transite pipes or insulation on pipes). If utility pipelines are scheduled for removal or relocation or a
building(s) is proposed to be removed or renovated, various regulatory requirements may apply, including the requirements
stipulated in the National Emission Standard for Hazardous Air Pollutants (40CFR61, Subpart M - asbestos NESHAP). These
requirements include but are not limited to: 1) notification to the APCD, 2) an asbestos survey conducted by a Certified
Asbestos Inspector, and, 3) applicable removal and disposal requirements of identified ACM. More information on Asbestos
can be found at http://www.slocleanair.org/business/asbestos.php.
AQ-3: Developmental Burning. APCD regulations prohibit developmental burning of vegetative material within San Luis
Obispo County.
AQ-4: Permits. Portable equipment and engines 50 horsepower (hp) or greater, used during construction activities will
require California statewide portable equipment registration (issued by the ARB) or an Air District permit. The following list
is provided as a guide to equipment and operations that may have permitting requirements, but should not be viewed as
exclusive: power screens, conveyors, diesel engines, and/or crushers; portable generators and equipment with engines that are
50 hp or greater; internal combustion engines; unconfined abrasive blasting operations; concrete batch plants; rock and
pavement crushing; tub grinders; and, trommel screens.
AQ-5: Standard Mitigation Measures for Construction Equipment. The standard mitigation measures for reducing nitrogen
oxides (NOx), reactive organic gases (ROG), and diesel particulate matter (DPM) emissions from construction equipment are
listed below:
a. Maintain all construction equipment in proper tune according to manufacturer’s specifications;
b. Fuel all off-road and portable diesel powered equipment with ARB certified motor vehicle diesel fuel (non-taxed
version suitable for use off-road);
c. Use diesel construction equipment meeting ARB's Tier 2 certified engines or cleaner off-road heavy-duty diesel
engines, and comply with the State off-Road Regulation;
d. Use on-road heavy-duty trucks that meet the ARB’s 2007 or cleaner certification standard for on-road heavy-duty diesel
engines, and comply with the State On-Road Regulation;
e. Construction or trucking companies with fleets that that do not have engines in their fleet that meet the engine standards
identified in the above two measures (e.g. captive or NOx exempt area fleets) may be eligible by proving alternative
compliance;
f. All on and off-road diesel equipment shall not idle for more than 5 minutes. Signs shall be posted in the designated
queuing areas and or job sites to remind drivers and operators of the 5 minute idling limit;
g. Diesel idling within 1,000 feet of sensitive receptors is not permitted;
h. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors;
i. Electrify equipment when feasible;
j. Substitute gasoline-powered in place of diesel-powered equipment, where feasible;
k. Signs that specify no idling areas must be posted and enforced at the site; and,
l. Use alternatively fueled construction equipment on-site where feasible, such as compressed natural gas (CNG),
liquefied natural gas (LNG), propane or biodiesel.
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
14
AQ-6: Best Available Control Technology (BACT) for Construction Equipment. If the estimated ozone precursor emissions
from the actual fleet for a given construction phase are expected to exceed the APCD threshold of significance after the
standard mitigation measures are factored into the estimation, then BACT needs to be implemented to further reduce these
impacts. The BACT measures can include:
a. Further reducing emissions by expanding use of Tier 3 and Tier 4 off-road and 2010 on-road compliant engines;
b. Repowering equipment with the cleanest engines available; and
c. Installing California Verified Diesel Emission Control Strategies. These strategies are listed at:
http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm
AQ-7: Fugitive Dust Mitigation Measures. Projects with grading areas that are less than 4-acres and that are not within 1,000
feet of any sensitive receptor shall implement the following mitigation measures to minimize nuisance impacts and to
significantly reduce fugitive dust emissions:
a. Reduce the amount of the disturbed area where possible;
b. Use of water trucks or sprinkler systems, in sufficient quantities to prevent airborne dust from leaving the site and from
exceeding the APCD’s limit of 20% opacity for greater than 3 minutes in any 60-minute period. Increased watering
frequency would be required whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water should be used
whenever possible. Please note that during drought conditions, water use may be a concern and the contractor or builder
shall consider the use of an APCD-approved dust suppressant where feasible to reduce the amount of water used for
dust control (contact the APCD for a list of potential dust suppressants);
c. All dirt stock-pile areas should be sprayed daily as needed;
d. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible, and building pads should
be laid as soon as possible after grading unless seeding or soil binders are used;
e. All of these fugitive dust mitigation measures shall be shown on grading and building plans; and
f. The contractor or builder shall designate a person or persons to monitor the fugitive dust emissions and enhance the
implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below 20% opacity,
and to prevent transport of dust offsite. Their duties shall include holidays and weekend periods when work may not be
in progress.
g. Projects with grading areas greater than 4 acres or within 1,000 feet of any sensitive receptor shall implement the
measures above, in addition to the following additional mitigation measures to manage fugitive dust emissions such that
they do not exceed the APCD’s 20% opacity limit (APCD Rule 401) or prompt nuisance violations (APCD Rule 402):
1) Permanent dust control measures identified in the approved project revegetation and landscape plans should be
implemented as soon as possible, following completion of any soil disturbing activities;
2) Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading should be
sown with a fast germinating, non-invasive grass seed and watered until vegetation is established;
3) All disturbed soil areas not subject to revegetation should be stabilized using approved chemical soil binders, jute
netting, or other methods approved in advance by the APCD;
4) Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site;
5) All trucks hauling dirt, sand, soil, or other loose materials are to be covered or should maintain at least two feet of
freeboard (minimum vertical distance between top of load and top of trailer) in accordance with California Vehicle
Code (CVC) Section 23114;
6) “Track-Out” is defined as sand or soil that adheres to and/or agglomerates on the exterior surfaces of motor vehicles
and/or equipment (including tires) that may then fall onto any highway or street as described in CVC Section 23113
and California Water Code 13304. To prevent ‘track out’, designate access points and require all employees,
subcontractors, and others to use them. Install and operate a ‘track-out prevention device’ where vehicles enter and
exit unpaved roads onto paved streets. The ‘track-out prevention device’ can be any device or combination of
devices that are effective at preventing track out, located at the point of intersection of an unpaved area and a paved
road. Rumble strips or steel plate devices need periodic cleaning to be effective. If paved roadways accumulate
tracked out soils, the track-out prevention device may need to be modified;
7) Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers
shall be used with reclaimed water where feasible. Roads shall be pre-wetted prior to sweeping when feasible.
d-e) The AASP FEIR did not identify any sensitive receptors in the subject annexation area nor did these documents find any
objectional odors would occur as a result of the annexation of these lands into the City. Identified infrastructure
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
15
improvements do not include any actions that would generate objectionable odors. No new sensitive receptors are present
within or adjacent to the subject area and future development would occur consistent with the adopted AASP. Therefore,
potential impacts would be less than significant.
Conclusion: Less than significant impact upon implementation of previously identified mitigation measures. Annexation of
the subject area and service to existing uses will not result in changes in ambient air quality conditions in the vicinity. No
new development is included as part of the contemplated service and annexation proposal, and implementation of
infrastructure improvements is subject to previously- adopted identified mitigation measures noted above as AQ-1 through
AQ-7 from the AASP FEIR, as updated based on the current effective APCD CEQA Air Quality Handbook. Future projects
would be required to have independent CEQA review and requirements would be imposed as needed to comply with City
and APCD Plans.
4. BIOLOGICAL RESOURCES. Would the project:
a) Have a substantial adverse effect, either directly or through
habitat modifications, on any species identified as a candidate,
sensitive, or special status species in local or regional plans,
policies, or regulations, or by the California Department of Fish
and Game or U.S. Fish and Wildlife Service?
2,4,5,
6,13,
17
X
b) Have a substantial adverse effect on any riparian habitat or
other sensitive natural community identified in local or regional
plans, policies, regulations or by the California Department of
Fish and Game or US Fish and Wildlife Service?
2,4,5,
6,13,
17 X
c) Have a substantial adverse effect on Federally protected
wetlands as defined in Section 404 of the Clean Water Act
(including, but not limited to, marshes, vernal pools, etc.)
through direct removal, filling, hydrological interruption, or
other means?
2,4,5,
6,13,
17 X
d) Interfere substantially with the movement of any native resident
or migratory fish or wildlife species or with established native
resident or migratory wildlife corridors, or impede the use of
wildlife nursery sites?
2,4,5,
6,13,
17 X
e) Conflict with any local policies or ordinances protecting
biological resources, such as a tree preservation policy or
ordinance?
2,4,5,
6,13,
17
X
f) Conflict with the provisions of an adopted Habitat Conservation
Plan, Natural Community Conservation Plan, or other approved
local, regional, or state habitat conservation plan?
2,4,5,
6,13,
17
X
Evaluation
The larger context Airport Area contains the following natural communities (Figure 3C-1 and Table 3C-2; AASP FEIR):
non-native grasslands, including several large patches of valley needlegrass grassland; and a matrix of coyote brush scrub,
open water, freshwater marsh and seasonal wetland, riparian woodland and scrub, agricultural fields, and developed and
ruderal areas. The larger area analyzed in the FEIR comprised some 404 acres. The subject Fiero Lane-Clarion Court
annexation area comprises a smaller subset of approximately 39 acres. Specific habitat types noted in the FEIR for this area
included annual grasslands, riparian habitat along the northerly drainage course and ruderal disturbed areas. As noted in the
FEIR, none of the smaller subset of subject properties represent a significant sensitive resource area.
The annexation will trigger the installation of various road and utility upgrades and improvements to serve the annexation
area with City services. These upgrades and improvements, all detailed in Initial Study Sources #8-9-10, are all located
within areas of existing disturbance (largely developed public and private streets) such that no utility systems needed to serve
the annexation area will require disturbance to established and mapped wetland resources, sensitive natural communities,
grassland disturbance riparian habitats or special status species as noted in the AASP FEIR. The relocated wastewater
Item 13
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Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
16
treatment package plant would be located within Tract 2368 (East Airport), a subdivision currently within the County of San
Luis Obispo, on a site currently developed with existing FLWC facilities (1275 Prospect). Pursuant to the MND that was
adopted by the County upon approval of Tract 2368, the proposed relocation site contains non-native grassland habitat, and
the results of a botanical survey noted that no sensitive or special-status species are present.
a) No modifications to established habitat areas would result from the annexation of the subject Fiero Lane-Clarion Court
properties and/or the installation of needed infrastructure (as addressed in Utilities, Transportation or Public Services section
noted below) to serve the annexation area. Therefore, potential impacts would be less than significant. Any future projects
considered by the City in the subject area would be required to meet City policies and regulations, as well as comply with
California Fish and Wildlife and/or US Fish and Wildlife Service standards.
b-c) The northern extent of the proposed annexation area is bounded by an existing creek and associated riparian corridor.
The parcels adjacent to the creek are currently developed, and future development will be subject to creek setback
requirements identified in the AASP and City Zoning Regulations. No infrastructure improvements are identified within or
proximate to this riparian corridor, and no removal, filling, hydrological interruptions or other direct impacts to local
resources are proposed with the annexation and infrastructure improvements noted herein. Therefore, implementation of the
annexation and associated infrastructure improvements (located within established parcels and roadways) would not directly
affect any riparian habitat, wetland habitat, or natural communities identified in the AASP FEIR. Therefore, potential
impacts would be less than significant.
d) The proposed annexation area is largely developed, and does not provide upland habitat suitable for wildlife migratory
corridors. The proposed annexation would not require any infrastructure improvements that would affect wildlife within the
existing riparian corridor, and no tree removals or disturbance of natural habitats would occur. Therefore, potential impacts
would be less than significant, and no mitigation measures are required.
e) The AASP FEIR did not identify any significant or sensitive biological resources located within the subject annexation
area. No tree removal or other potentially adverse modifications to the lands are proposed by the annexation. Therefore,
potential impacts would be less than significant, and no mitigation measures are required.
f) There are no adopted Habitat or Natural Community Conservation Plans that identify or address the subject area. Based on
the land use category and zoning identified in the City’s General Plan and AASP (Business Park and Services &
Manufacturing), and lack of sensitive habitat within areas proposed for infrastructure improvements consistent with the
AASP, the Proposed Project would be consistent with the City’s Conservation and Open Space Element.
Conclusion: Less than significant impact.
5. CULTURAL RESOURCES. Would the project:
a) Cause a substantial adverse change in the significance of a
historic resource? (See CEQA Guidelines 15064.5)
4,5,6,
13, 17 X
b) Cause a substantial adverse change in the significance of an
archaeological resource? (See CEQA Guidelines 15064.5)
4,5,6,
13,17 X
c) Directly or indirectly destroy a unique paleontological resource
or site or unique geologic feature?
4,5,6,
13, 17 X
d) Disturb any human remains, including those interred outside of
formal cemeteries?
4,5,6,
13, 17 X
Evaluation
The AASP FEIR noted that at that time, multiple field surveys had been conducted within the larger Airport Area and with
the exception of a historic building near Buckley Road, no cultural resources were noted in the area. The AASP and FEIR
provide that any work conducted in areas where surveys have not been done shall include such surveys into their project
planning and development. To the extent that road and utility installations occur within previously disturbed areas, it is
unlikely that any potential significant impacts to resources may occur. As is the case with all public works projects, in the
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
17
event of unforeseen encounter of materials suspected to be of cultural significance, established protocols include suspending
work pending more detailed review and consultation over such finds/findings.
Native American Tribes have been notified about the project consistent with City and State regulations. The Northern
Chumash Tribal Council (February 8, 2019) has noted that the existence of development and infrastructure within the
annexation area does not preclude the presence of cultural resources. No evidence has been provided that would suggest any
known resources are located within the subject annexation area.
a, b, c, d) Based on the certified AASP FEIR, no cultural resources were documented within the subject area. Based on the
adopted MND for Tract 2368, no cultural resources were documented within the parcel proposed for the potentially-relocated
wastewater treatment package plant. In addition, pursuant to the adopted MND for Tract 2368, relocation of the plant within
this area is subject to the following mitigation measure:
Mitigation Measure
CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or paleontological resources are
unearthed or discovered during any construction activities, the following standards apply:
a. Construction activities shall cease, and the Environmental Coordinator and Planning Department shall be notified so that
the extent and location of discovered materials may be recorded by a qualified archaeologist, and disposition of artifacts
may be accomplished in accordance with state and federal law, and in consultation with local Native American tribal
organizations.
b. In the event archaeological resources are found to include human remains, or in any other case where human remains are
discovered during construction, the County Coroner is to be notified in addition to the Planning Department and
Environmental Coordinator so that proper disposition may be accomplished.
Infrastructure improvements would occur within existing roadways and utility corridors. In the unlikely event of resource
discovery, City of San Luis Obispo Archaeological Resource Preservation Program Guidelines Section 4.60.1 requires that
all construction activities that may disrupt those materials shall cease and the Community Development Director shall be
notified immediately of the discovery of archaeological materials. Based on the results of cultural resource studies within the
subject area, location of infrastructure improvements, and compliance with adopted Guidelines in place to protect cultural
resources upon inadvertent and unlikely discovery, potential impacts would be less than significant.
Conclusion: Less than significant impact upon implementation of previously identified mitigation measures.
6. GEOLOGY AND SOILS. Would the project:
a) Expose people or structures to potential substantial adverse
effects, including risk of loss, injury or death involving:
I. Rupture of a known earthquake fault, as delineated in the
most recent Alquist-Priolo Earthquake Fault Zoning Map
issued by the State Geologist for the area, or based on other
substantial evidence of a known fault? Refer to Division of
Mines and Geology Special Publication 42.
2,4,5,
13 X
II. Strong seismic ground shaking? 5,13 X
III. Seismic-related ground failure, including liquefaction? 5,13 X
IV. Landslides or mudflows? 5,13 X
b) Result in substantial soil erosion or the loss of topsoil? 5,13 X
c) Be located on a geologic unit or soil that is unstable, or that
would become unstable as a result of the project, and potentially
result in on or off site landslides, lateral spreading, subsidence,
liquefaction, or collapse?
2,4,5,
13 X
d) Be located on expansive soil, as defined in Table 18-1-B of the
Uniform Building Code (1994), creating substantial risks to life
or property?
2,4,5,
13 X
e) Have soils incapable of adequately supporting the use of septic 2,4,5, X
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
18
tanks or alternative waste water disposal systems where sewers
are not available for the disposal of waste water?
13
Evaluation:
San Luis Obispo lies within the southern Coast Range Geomorphic Provence, between the Central California Valley and
Pacific Ocean. Rock types in the San Luis Obispo area are mainly comprised of volcanic, metavolcanics, and melanges of
serpentinite and graywacke sandstone. These rocks are highly fractured and are part of the Mesozoic aged Franciscan
Formation. The predominant northwest-southeast trending structures of the Coast Range Province are related to the San
Andreas Fault Transform Boundary. According to the Geologic Map of California, San Luis Obispo Sheet published by the
California Division of Mines and Geology (CDMG) in 1978, the site vicinity is underlain by the Franciscan Formation and
Tertiary intrusive rocks. The nearest fault mapped in the site vicinity by Jennings (1994) is the Edna Fault, which is actually
a fault zone that lies approximately 1-2 miles to the northwest of the project site. This fault zone generally trends along the
northern flank of the Irish Hills.
Previous analysis under the AASP and General Plan has noted that for the general conditions in the subject area, individual
geologic studies are required to consider any proposed development projects. These studies have not identified specific areas
within the AASP that would be prohibited from development due to geologic conditions or significant adverse conditions.
Detailed geologic analysis specific to any proposed site or development would be provided consistent with city regulations to
identify potential impacts and mitigation measures accordingly.
a) The subject annexation property has not been identified to be subject to significant seismic constraints in the AASP FEIR.
Based on this, no significant impacts related to seismic activity, landslides, or mudflow would occur during implementation
of infrastructure improvements, and future analysis for project specific development will be conducted to analyze such
potential impacts as appropriate with new development, as required by the California Building Code.
b-c-d-e) The action of annexation will not result in physical impacts on the environment, with the exception of infrastructure
improvements. Based on the location of infrastructure improvements, which would occur in areas with existing roads and
utility corridors, and compliance with erosion and stormwater control measures as dictated by the City’s Municipal Code and
Standard Specifications and Engineering Standards (May 2018), potential impacts related to soil erosion, expansive soils, or
unstable geologic soils conditions would be less than significant. No septic tanks are proposed as part of the annexation area,
as existing and future development would connect to City sewer infrastructure.
Conclusion: Less than significant Impact
7. GREENHOUSE GAS EMISSIONS. Would the project:
a) Generate greenhouse gas emissions, either directly or indirectly,
that may have a significant impact on the environment? 11,12 X
b) Conflict with an applicable plan, policy or regulation adopted
for the purpose of reducing the emissions of greenhouse gases.
2,3,4,
11,12 X
Evaluation
In response to an increase in man-made greenhouse gas (GHG) concentrations over the past 150 years, California has
implemented legislation to reduce statewide emissions. Assembly Bill 32 (AB 32) codifies the Statewide goal of reducing
emissions to 1990 levels by 2020 (essentially a 15% reduction below 2005 emission levels) and the adoption of regulations to
require reporting and verification of statewide GHG emissions. Senate Bill 32 (SB 32) extends AB 32, requiring the State to
further reduce GHGs to 40 percent below 1990 levels by 2030. On December 14, 2017, the California Air Resources Board
(ARB) adopted the 2017 Scoping Plan, which provides a framework for achieving the 2030 statewide target set by SB 32.
The 2017 Scoping Plan does not provide project-level thresholds for land use development. Instead, it recommends that local
governments adopt policies and locally-appropriate quantitative thresholds consistent with a statewide per capita goal of six
metric tons (MT) CO2e by 2030 and two MT CO2e by 2050 (ARB 2017). As stated in the 2017 Scoping Plan, these goals
may be appropriate for plan-level analyses (city, county, sub-regional, or regional level), but not for specific individual
projects because they include all emissions sectors in the State.
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
19
The vast majority of individual projects do not generate sufficient GHG emissions to directly influence climate change.
However, physical changes caused by a project can contribute incrementally to cumulative effects that are significant, even if
individual changes resulting from a project are limited. The issue of climate change typically involves an analysis of whether
a project’s contribution towards an impact would be cumulatively considerable. “Cumulatively considerable” means that the
incremental effects of an individual project are significant when viewed in connection with the effects of past projects, other
current projects, and probable future projects (CEQA Guidelines, Section 15064[h][1]).
a, b) The action of annexation would not result in the generation of greenhouse gas emissions. Continued interim service by
the City to existing uses in the County, and the annexation of those existing uses, do not result in changes to air emissions
conditions in the area. Construction-related emissions would occur during the implementation of infrastructure
improvements; however, these emissions would be short-term, and based on the limited scope of the action, would not have a
significant impact on the environment or impair the achievement of greenhouse gas reductions by 2050. Furthermore,
compliance with mitigation measures identified in Section 3 (Air Quality) would reduce the project’s contribution to air
emissions during construction of infrastructure improvements.
Conclusion: Less than significant impact
8. HAZARDS AND HAZARDOUS MATERIALS. Would the project:
a) Create a significant hazard to the public or the environment
through the routine transport, use, or disposal of hazardous
materials?
2,4,5,
13 X
b) Create a significant hazard to the public or the environment
through reasonably foreseeable upset and accident conditions
involving the release of hazardous materials into the
environment?
2,4,5,
13 X
c) Emit hazardous emissions or handle hazardous or acutely
hazardous materials, substances, or waste within one-quarter
mile of an existing or proposed school?
2,4,5,
13 X
d) Be located on a site which is included on a list of hazardous
materials sites compiled pursuant to Government Code Section
65962.5 and, as a result, it would create a significant hazard to
the public or the environment?
2,4,5,
13,
15,
16, 17
X
e) For a project located within an airport land use plan or, where
such a plan has not been adopted, within two miles of a public
airport or public use airport, would the project result in a safety
hazard for people residing or working in the project area?
2,4,5,
13 X
f) For a project within the vicinity of a private airstrip, would the
project result in a safety hazard for people residing or working
in the project area?
2,4,5,
13 X
g) Impair implementation of, or physically interfere with, the
adopted emergency response plan or emergency evacuation
plan?
2,4,5,
13 X
h) Expose people or structures to a significant risk of loss, injury,
or death, involving wildland fires, including where wildlands
are adjacent to urbanized areas or where residents are
intermixed with wildlands?
2,4,5,
13 X
Evaluation
The subject annexation area and area to be affected by infrastructure improvements are located on the eastern edge of the San
Luis Obispo County Regional Airport, on the west side of Broad Street (State Route 227). Previous studies conducted for the
AASP FEIR and LUCE Update FEIR acknowledge significant contamination of soils within the Airport Area as a result of
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
20
the Unocal Tank Farm lightning strike and fire, almost 90 years ago (1926). Ongoing remediation efforts and planning have
been actively underway since the late 1980’s along Tank Farm Road. The subject annexation area does not fall within the
documented contaminated areas from these prior studies. Based on review of the GeoTracker and Envirostor databases, there
are no hazardous waste sites within the annexation area.
The project site is located within the boundaries of the AASP, which was reviewed and approved by the Airport Land Use
Commission. The annexation area is located within Airport Safety Zones S-1b and S-1-c. Following annexation, future
development would be subject to development limitations and standards identified in the AASP and Zoning Regulations
Chapter 17.64 (Airport [AOZ] Overlay Zone), which are required to ensure compatibility with existing and future airport
operations, and to prohibit the establishment of incompatible uses and further expansion of incompatible uses what could
detrimentally affect long-term economic viability of the airport, and to avoid or minimize exposure of persons to potential
hazards associated with current and future airport operations.
a, b) The proposed annexation will not create a hazard to the public as there will be no transport, use or disposal of hazardous
chemicals permitted by the annexation action. Implementation of infrastructure improvements would consist of standard
construction practices and would not involve the use or storage of large quantities of hazardous materials. Small quantities of
potentially hazardous materials such as fuels, lubricants, and solvents would be used during construction of the project.
California Health and Safety Code, Division 20, Chapter 6.5, and California Code of Regulations Title 22 – Hazardous Waste
Management states that waste that is toxic, corrosive, flammable, or reactive when tested in accordance with the California
Code of Regulations, Title 22, Article 11, Section 66693, must be handled, stored, transported, and disposed of in accordance
with these regulations, which are more stringent than federal regulations. The transport of materials during the construction
of the project could pose a threat to residents and people in the area. An accident involving such trucks could potentially
expose nearby people to health hazards. However, U.S. EPA and U.S. Department of Transportation laws and regulations
have been promulgated to track and manage the safe interstate transportation of hazardous materials and waste. U.S. EPA
administers permitting, tracking, reporting, and operations requirements established by the Resource Conservation and
Recovery Act (RCRA). U.S. Department of Transportation regulates the transportation of hazardous materials through
implementation of the Hazardous Materials Transportation Act. This act administers container design, labelling, and driver
training requirements. State and local agencies enforce the application of these acts and provide coordination of safety and
mitigation responses in the case that accidents involving hazardous materials occur. Enforcement of these regulations and
rapid response by local agencies would ensure that hazards to the public or environment through reasonably foreseeable upset
and accident conditions involving the release of hazardous materials into the environment are less than significant. In
addition, the project would be required to adhere to all federal, state, and local regulations, as well as the policies in the City
of San Luis Obispo Safety Element, which discuss safety and reducing the risks of hazardous material exposure. Program 9.6
of the City’s Safety Element states that the City shall ensure that transportation of hazardous materials follows Caltrans-
approved routes, and that all necessary safety precautions are taken to prevent hazardous material spills. Therefore, based on
the limited scope and location of the infrastructure improvements and compliance with existing regulations, potential impacts
would be less than significant.
c) No hazardous emissions would be permitted by the annexation and there is not a school located within ½ mile of the
annexation area or location of infrastructure improvements. Therefore, potential impacts would be less than significant.
d) The subject annexation and infrastructure improvement areas are not located on a designated hazardous site nor listed to
include materials that would represent a significant hazard to the public. Therefore, potential impacts would be less than
significant.
e) The property is located near the Regional Airport but the continued operation of existing uses, and any proposals for new
uses following annexation, must be consistent with City General Plan, Zoning Regulations, and AASP (which was reviewed
and approved by the Airport Land Use Commission). Application of those standards will prevent development within the
subject annexation area from becoming a hazard to airport operations. Implementation of infrastructure improvements would
not result in the creation of any features or involve any activities that would result in a hazard related to air traffic. Therefore,
potential impacts would be less than significant.
f) The property is not located near a private airstrip; therefore, potential impacts would be less than significant.
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
21
g) The subject annexation area will be subject to San Luis Obispo city emergency response and evacuation plans.
Annexation of this area and implementation of infrastructure improvements will not impair the ability of the city to
implement its designated plans and exercise its public safety responsibilities in the area. Therefore, potential impacts would
be less than significant.
h) The subject annexation area and areas identified for infrastructure improvements are located within a low fire hazard area,
as identified on the City’s Safety Element Wildland Fire Hazard Map, and the area consists of a largely developed industrial
area, which does not contain wildland fuels that could expose persons to significant risk from wildland fires. Therefore,
potential impacts would be less than significant.
Conclusion: Less than significant impact.
9. HYDROLOGY AND WATER QUALITY. Would the project:
a) Violate any water quality standards or waste discharge
requirements?
2,4,5,
6,13 X
b) Substantially deplete groundwater supplies or interfere
substantially with groundwater recharge such that there would
be a net deficit in aquifer volume or a lowering of the local
groundwater table level (e.g. The production rate of pre-existing
nearby wells would drop to a level which would not support
existing land uses for which permits have been granted)?
2,4,5,
6,13
X
c) Substantially alter the existing drainage pattern of the site or
area in a manner which would result in substantial erosion or
siltation onsite or offsite?
2,4,5,
6,13 X
d) Substantially alter the existing drainage pattern of the site or
area in a manner which would result in substantial flooding
onsite or offsite?
2,4,5,
6,13 X
e) Create or contribute runoff water which would exceed the
capacity of existing or planned stormwater drainage systems or
provide substantial additional sources of polluted runoff?
2,4,5,
6,13 X
f) Otherwise substantially degrade water quality? 2,4,5,
6,13 X
g) Place housing within a 100-year flood hazard area as mapped
on a Federal Flood Hazard Boundary or Flood Insurance Rate
Map or other flood hazard delineation map?
2,4,5,
6,13,
14
X
h) Place within a 100-year flood hazard area structures which
would impede or redirect flood flows?
2,4,5,
6,13,
14
X
i) Expose people or structures to a significant risk of loss, injury
or death involving flooding, including flooding as a result of the
failure of a levee or dam?
2,4,5,
6,13 X
j) Inundation by seiche, tsunami, or mudflow? 2,4,5,
6,13 X
Evaluation
The principal drainage for the Airport Area is the East Branch San Luis Obispo Creek, which joins San Luis Obispo Creek
southwest of the project area. Drainage from the Airport area is collected into Tank Farm Creek and the East Branch San
Luis Obispo Creek. Drainage travels through the area on a generally southwesterly course until the East Branch San Luis
Obispo Creek joins San Luis Obispo Creek.
a, f) As analyzed in the AASP FEIR, potential impacts related to stormwater and water quality concerns are addressed by
imposing established permit activity requirements, such as the State Water Board’s National Pollutant Discharge Elimination
System (NPDES) construction activity stormwater permit and best management practices (BMPs). The AASP and City
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
22
requirements (including the Municipal Code and City Engineering Standards), impose these analyses and permitting
requirements before allowing projects to proceed. Such analysis would be undertaken as required by the AASP for any future
development project within the subject annexation area. As the annexation action does not include physical development
beyond infrastructure improvements, and construction activities associated with infrastructure improvements would be
subject to existing erosion control and water quality regulations, potential impacts would be less than significant and no
mitigation is required.
b) The subject annexation does not include groundwater extraction. The area is presently being served by the City’s
municipal water system. Therefore, potential impacts would be less than significant.
c-d) No alterations of drainage patterns are permitted or proposed by the subject annexation and infrastructure improvements.
Therefore, potential impacts would be less than significant.
e) The proposed annexation is subject to a 2015 Memorandum of Agreement (MOA) and 2019 First Amendment to said
MOA to provide interim services and future annexation to a largely developed business and industrial area in the County, at
Fiero Lane and Clarion Court. Annexation of those existing uses do not result in changes to drainage patterns or storm runoff
conditions in the area. Potential impacts would be anticipated to include impervious surfaces and surface water pollution, and
the potential to reorient water courses in the Plan area.
Provisions from the 2015-2019 MOA Concerning Storm Drainage Infrastructure include the following: The existing storm
drain within the existing County right-of-way is owned and maintained by the County. The Fiero Lane Water Company
(Company) shall coordinate with the County to arrange for the inspection and cleaning of the storm drain system. In the event
the County is unwilling to perform the work prior to annexation, the City and Company shall work cooperatively to arrange
for an alternative means of cleaning with concurrence and permission from the County. With these provisions included in the
Project Description, storm water conditions will be adequately addressed and can be found to comply with City infrastructure
standards at the time of annexation. The proposed annexation and infrastructure improvements would not create or contribute
runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial
additional sources of polluted runoff because no new impervious surfaces would be created. Therefore, potential impacts
would be less than significant.
g-h-i) The northwest corner of the proposed annexation area near Santa Fe Road is located within Flood Zone A. Pursuant to
the Federal Emergency Management Agency, Flood Zone A is identified for areas subject to inundation by the one-percent-
annual-chance flood event, and no Base Flood Elevations (BFEs) or flood depths are identified. Mandatory flood insurance
purchase requirements and floodplain management standards apply to properties within this zone. No housing is proposed
within the annexation area and no improvements are proposed that would block or impede floodwaters. Any future
development within the annexation area, and within the flood zone, would be subject to Zoning Regulations Chapter 17.78
Flood Damage Prevention, which is in place to: promote the public health, safety, and general welfare, and to minimize
public and private losses due to flood conditions in specific areas by legally enforceable regulations applied uniformly
throughout the community to all publicly and privately-owned land within flood-prone, mudslide (i.e., mudflow), and/or
flood-related erosion areas. Therefore, potential impacts would be less than significant.
j) The subject site is not identified by the AASP FEIR to be subject to seiche, tsunami or mudflows; therefore, potential
impacts would be less than significant.
Conclusion: Less than significant impact
10. LAND USE AND PLANNING. Would the project:
a) Physically divide an established community? 2,4 X
b) Conflict with applicable land use plan, policy, or regulation of
an agency with jurisdiction over the project adopted for the
purpose of avoiding or mitigating an environmental effect?
2,4 X
c) Conflict with any applicable habitat conservation plan or natural
community conservation plans?
2,4 X
Item 13
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
23
Evaluation
The area is designated for business park and service-manufacturing uses under the General Plan and AASP. Annexation of
the project area was anticipated in the AASP, which identified pre-zoning for the site (Business Park, Manufacturing, Service
Commercial) at the time the AASP was adopted.
a) The subject annexation area is located within a larger developed area of southern San Luis Obispo. The properties
comprising Fiero-Clarion are approximately 90% developed at this time. The subject area is a continuation of development
surrounding the general vicinity and the annexation of the site would bring it officially into the San Luis Obispo community
without modifying any of the current land uses of the area. The annexation will not physically divide this established
community, as it is currently included in the AASP and associated long-term planning maps for the area. Therefore, no
impact would occur.
b) As noted in the AASP FEIR, the subject annexation is consistent with City policies established under the General Plan and
AASP and complies with the San Luis Obispo County Airport Land Use Plan (ALUP). No changes to pre-zoning or land use
categories are proposed. The proposed annexation is consistent with applicable land use planning documents for the area.
Therefore, potential impacts would be less than significant.
c) As noted in Section 4 (Biological Resources) there are no Habitat or Natural Community Conservation Plans applicable to
the subject property.
Conclusion: Less than significant impact.
11. MINERAL RESOURCES. Would the project:
a) Result in the loss of availability of a known mineral resource
that would be of value to the region and the residents of the
state?
2,4
X
b) Result in the loss of availability of a locally important mineral
resource recovery site delineated on a local general plan,
specific plan or other land use plan?
2,4
X
Evaluation
The properties subject to the annexation are located in an urbanized area. There are no known mineral resources in the area,
and there has not been any mining or mineral extraction uses of the subject properties.
a, b) Based on the location of the proposed annexation and infrastructure improvements, no impact to mineral resources
would occur.
Conclusion: No impact.
12. NOISE. Would the project result in:
a) Exposure of persons to or generation of noise levels in excess of
standards established in the local general plan or noise
ordinance, or applicable standards of other agencies?
2,4,5,
13 X
b) Exposure of persons to or generation of excessive ground-borne
vibration or ground-borne noise levels?
2,4,5,
13 X
c) A substantial permanent increase in ambient noise levels in the
project vicinity above levels existing without the project?
2,4,5,
13 X
d) A substantial temporary, periodic, or permanent increase in
ambient noise levels in the project vicinity above levels existing
without the project?
2,4,5,
13 X
Item 13
Packet Page 124
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
24
e) For a project located within an airport land use plan or, where
such a plan has not been adopted, within two miles of a public
airport or public use airport, would the project expose people
residing or working in the project area to excessive noise
levels?
2,4,5,
13
X
f) For a project within the vicinity of a private airstrip, would the
project expose people residing or working in the project area to
excessive noise levels?
2,4,5,
13 X
Evaluation
Noise-sensitive land uses are those land uses that can be adversely affected by elevated or increased noise levels. Sensitive
land uses generally include residences, schools, libraries, nursing homes, and churches. The primary sources of noise within
the subject area include traffic on major roadways and highways, and aircraft operating in and out of the County Airport.
Stationary noise sources include the day-to-day activities associated with the existing land uses in the planning area.
The subject annexation area is designated for service and manufacturing uses under the General Plan and AASP. Potentially
sensitive receptors include existing offices in the area. Noise generation occurs most significantly from roadway traffic on
Broad Street (State Route 227). Noise from nearby airport operations occurs on an intermittent basis. Increases in traffic or
airport operations will cause incremental increases in background ambient noise levels. As indicated in Table 3F-3 of the
AASP FEIR, properties within 100 feet of Broad Street (State Route 227) are predicted to be exposed to traffic noise levels
that exceed the planning standard of 60 dBA-Ldn. More current noise contour modeling conducted for the LUCE Update
EIR show that upon City buildout, the noise level 50 feet from the roadway centerline would be 71 decibels. Other sources of
transportation-related noise include Tank Farm Road and Santa Fe Road. The proposed annexation area is located
approximately 600-700 feet south of Tank Farm Road, and the western edge of the annexation area is bound by Santa Fe
Road. As indicated in AASP FEIR Table 3F-3, properties within 100 feet of Santa Fe Road are predicted to be exposed to
traffic noise levels ranging from 56 to 66 Ldn within 100 feet of the roadway.
a, b, c, d) The LUCE Update FEIR models a noise level of approximately 71 dB within 50 feet of the Broad Street centerline
(transportation-related noise). As documented in the LUCE Update EIR Background Report and County Airport Land Use
Plan, the annexation area is located with the 55 and 60 dB noise contours. The AASP FEIR identified potential impacts due
to exposure to traffic noise (Impact N-1: Exposure of Land Uses to Traffic Noise in Excess of the Standards for Exterior
Noise Exposure specified in Table 3F-1; Impact N-2: Increase in Permanent or Temporary Ambient Noise Levels as
Indicated in Table 3F-3, Substantial Increases in Noise Would Occur Along Some Roadways) and aircraft noise (Impact N-3:
Exposure of Residential Uses to Aircraft Noise). The AASP FEIR determined that implementation of mitigation measures
identified in the City’s Noise Element would mitigate impacts related to noise exposure to less than significant.
While the annexation action does not permit or approve future development, discretionary review of future projects would
occur, and would be subject to the requirements of the City’s Municipal Code, including Chapter 17.74 (Zoning Regulations,
Airport Overlay Zone, Noise) and Chapter 9.12 (Noise Control), consistent with the AASP FEIR. Implementation and
construction of identified infrastructure improvements would be short-term, and limited to areas within existing roadways
and utility corridors. Implementation of the project would not result in any long-term increase in noise. Therefore, potential
impacts would be less than significant.
e) Existing background noise conditions include instantaneous increases from airport operations. The County’s ALUP,
AASP, and AASP FEIR recognize the need to minimize noise generation, while balancing the viability of the airport with
local land uses. On-going operations at the County airport consistent with present regulations will continue to minimize
conflicts between nearby and adjoining uses. Increases in noise levels as analyzed by the AASP FEIR did not find these
conditions to be adverse and unavoidable. Instead the AASP FEIR acknowledged various building and site planning
techniques, along with land use restrictions, that have been incorporated into the AASP. While the proposed action does not
include development of land uses, future development would be subject to standards identified in the City’s Noise Element
and Municipal Code, which regulate noise exposure. Therefore, potential impacts would be less than significant.
f) The subject site is not located in the vicinity of a private airstrip; therefore, impacts would be less than significant.
Item 13
Packet Page 125
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
25
Conclusion: Less than significant Impact
13. POPULATION AND HOUSING. Would the project:
a) Induce substantial population growth in an area, either directly
(for example by proposing new homes or businesses) or
indirectly (for example, through extension of roads or other
infrastructure)?
2,4,5,
13 X
b) Displace substantial numbers of existing housing or people
necessitating the construction of replacement housing
elsewhere?
2,4,5,
13 X
c) Displace substantial numbers of people, necessitating the
construction of replacement housing elsewhere?
2,4,5,
13 X
Evaluation
The AASP and City General Plan designate the subject annexation area for light industrial, commercial and manufacturing
uses. These uses would not include residential occupancies of the area. These designations preclude new residential growth,
or displacement of existing housing, within the subject annexation area.
a-c) The proposed annexation will not result in new residential development or the relocation of existing housing within the
annexation area. Only new uses consistent with the AASP and General Plan would be permitted.
Conclusion: Less than significant impact.
14. PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the
provision, or need, of new or physically altered government facilities, the construction of which could cause
significant environmental impacts, in order to maintain acceptable service ratios, response times, or other
performance objectives for any of the public services:
a) Fire protection? 4,5,10 X
b) Police protection? 4,5,10 X
c) Schools? 4,5,10 X
d) Parks? 4,5,10 X
e) Roads and other transportation infrastructure? 4,5,10 X
f) Other public facilities? 4,5,10 X
Evaluation
The project area is currently served by the County Sheriff and County Fire/California Department of Forestry (CDF). There
is also a mutual aid agreement between the County and City for fire service response. The project area is within the San Luis
Coastal School District. The annexation is being processed pursuant to a 2015 Memorandum of Agreement (MOA) and 2019
First Amendment to said MOA to provide interim services and annexation to a developed business and industrial area in the
County, at Fiero Lane and Clarion Court. Continued interim service by the City to existing uses in the County, and the future
annexation of those existing uses, are subject to the March 2016 “Plan For Services” for the Fiero Land-Clarion Court
Annexation Area (Source 10).
a) Fire protection for the subject annexation area would be provided by the nearest staffed City Station #1 located at 2160
Santa Barbara Avenue and the County Fire/CDF Station #21 at the airport runway. Response times are considered four
minutes or less, based on LUCE EIR Figure 4.13-1 (Fire Department Four-Minute Response Times). The AASP provides
that the City will consider increases to staffing subject to budgetary analysis and overall city needs. The AASP notes that
interim improvements may be provided at the Chevron and Avila Ranch development areas until permanent facilities are
available. The City has completed the creation of a Community Facilities District (CFD) in association with the Avila Ranch
development project (also located within the AASP) to facilitate funding for a new interim fire station in the area. The AASP
Item 13
Packet Page 126
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
26
FEIR, AASP, and the proposed Plan for Services for this proposed annexation address fire service needs for this area of the
city. Therefore, implementation of the proposed annexation would not result in a significant impact to fire services, such that
construction of a new facility would be required.
b) The City Police Department currently provides mutual aid response to the AASP. Similar to fire services, police services
will undergo consideration for increases as annexation of the subject property is completed as noted in the AASP FEIR and
Plan for Services. Additional personnel and equipment will be considered under standard budgetary programs. The AASP
FEIR, AASP, and the proposed Plan for Services for this proposed annexation address police service needs for this area of
the City. Therefore, implementation of the proposed annexation would not result in a significant impact to police services,
such that a new police facility would be required.
c, d) As the proposed project consists of the annexation of existing commercial and industrial businesses into the City, and
the employees of these businesses are currently served by existing schools and parks, and the proposed annexation area is
approximately 90 percent built-out, potential impacts to schools and parks would be less than significant.
e) Provisions from the 2015-2019 MOA concerning street infrastructure include:
1. The Fiero Lane Water Company (COMPANY) will construct improvements and upgrades to Fiero Lane so as to bring the
street infrastructure into a " state of good repair". For purposes of this requirement, the definition of state of good repair
includes:
a. Upgrading traffic control signs and markings to meet current federal, State and City standards;
b. Upgrade street crossings to meet Federal and City ADA ramp and crossing standards;
c. Perform pavement maintenance as needed to meet City minimum pavement condition index requirements;
d. Remove and replace any damaged sections of sidewalk.
2. It is the intent of the agreement that Old Santa Fe Road south of the City/County boundary line, located immediately south
of the Santa Fe Bridge, will remain under County jurisdiction after annexation of properties on Clarion Court. If as part of the
LAFCO process, the City is required to take all, or part, of Old Santa Fe Road under City jurisdiction, the following
requirements shall be required:
a. The COMPANY will construct improvements and upgrades to Old Santa Fe Road, that is to be annexed to the City,
so as to bring the street infrastructure into a "state of good repair". For purposes of this requirement, the definition of
state of good repair includes:
b. Upgrading traffic control signs and markings to meet current federal, State and City standards; and
c. Upgrade street crossings at Clarion Court and the mini storage property to meet Federal and City ADA ramp and
crossing standards
d. Perform pavement maintenance as needed to meet City minimum pavement condition index requirements. The limits
of required improvements begin at the south side of the existing bridge across the East Fork of San Luis Creek and
terminate at the cul-de-sac fronting the mini storage property. No improvements to the bridge are proposed.
With these provisions included in the Project Description, transportation and street infrastructure conditions will be
adequately addressed and can be found to comply with City infrastructure standards at the time of annexation. As such, no
physical impacts are attributed to the time needed for infrastructure installations, fee payments and annexation as
contemplated in the annexation of lands subject to the MOA.
f) Other public services, such as transit, solid waste and recycling and general city administrative services are not considered
to be significantly impacted by the addition of the subject annexation area, based on the Project’s consistency with the AASP
and General Plan.
Conclusion: Less than significant impact.
15. RECREATION. Would the project:
a) Increase the use of existing neighborhood and regional parks or 2,4 X
Item 13
Packet Page 127
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
27
other recreational facilities such that substantial physical
deterioration of the facility would occur or be accelerated?
b) Include recreational facilities or require the construction or
expansion of recreational facilities, which might have an
adverse physical effect on the environment?
2,4 X
Evaluation
a, b) The annexation of the project area and existing uses would result in less than significant impacts from new or increased
residential demands for added parks and recreation services because there are no residential zones within the proposed
annexation area. As noted in Section 14 there will be no significant demands for school or parks and recreation services
based on annexation of the subject properties. The annexation of existing land uses, and implementation of infrastructure
improvements would not result in impacts from new or increased residential demands for added parks and recreation
services. Therefore, potential impacts would be less than significant.
Conclusion: Less than significant impact
16. TRANSPORTATION/TRAFFIC. Would the project:
a) Conflict with an applicable plan, ordinance or policy
establishing measures of effectiveness for the performance of
the circulation system, taking into account all modes of
transportation including mass transit and non-motorized travel
and relevant components of the circulation system, including
but not limited to intersections, streets, highways and freeways,
pedestrian and bicycle paths, and mass transit?
2,3,4,
5,10,
13
X
b) Conflict with an applicable congestion management program,
including, but not limited to level of service standards and travel
demand measures, or other standards established by the county
congestion management agency for designated roads or
highways?
2,3,4,
5,10,
13 X
c) Result in a change in air traffic patterns, including either an
increase in traffic levels or a change in location that results in
substantial safety risks?
2,3,4,
5,10,
13
X
d) Substantially increase hazards due to a design feature (e.g.,
sharp curves or dangerous intersections) or incompatible uses
(e.g. farm equipment)?
2,3,4,
5,10,
13
X
e) Result in inadequate emergency access? 2,3,4,
5,10 X
g) Conflict with adopted policies, plans, or programs regarding
public transit, bicycle, or pedestrian facilities, or otherwise
decrease the performance or safety of such facilities?
2,3,4,
5,10,
13
X
Evaluation
The LUCE EIR evaluated potential impacts of build-out, including build-out of adopted Specific Plans. The Transportation
section of the LUCE EIR states that: “Cumulative buildout of the proposed LUCE Update includes buildout of areas within
existing city boundaries, as well as buildout of the identified expansion areas and within the sphere of influence. The
increased development results in increased traffic, biking, walking, and transit usage throughout the city. By its nature, the
LUCE Update considers cumulative development within the city and potential expansion areas." Future development within
the annexation area would be subject to the adopted Circulation Element, the AASP, and transportation impact fees.
The proposed annexation area is access via Broad Street (State Route 227), Tank Farm Road, and Santa Fe Road. Continued
interim service by the City to existing uses in the County, and the future annexation of those existing uses, do not result in
Item 13
Packet Page 128
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
28
changes to traffic generation and circulation conditions in the area that were not previously considered in the AASP Final
EIR and EIR Addendum, the City’s LUCE updates in 2014, and as contemplated by the 2015 MOA concerning traffic
mitigations and impact fees. Payment of these fees by new development, coupled with contributions negotiated under the
MOA, will address cumulative traffic impacts. The Airport and Margarita Specific Plan Areas were considered under a
unified Program EIR. This EIR analyzed traffic conditions on a regional basis, not distinguishing the planning areas from
one another. For the purposes of impacts and mitigation measures, this analysis drove the preparation of the Specific Plan
Transportation sections, each dealing with improvements that could be implemented on both a localized scale and in a
regional context for citywide mitigation programs.
The AASP and Plan for Services address a series of projects to be completed as part of the annexation process. These
improvements primarily include pavement upgrades and bringing the roadway infrastructure for the annexation area up to
city standards. These improvements are noted as traffic control and striping, accessibility ramps and walks, pavement
maintenance and improvement to Old Santa Fe Road in the area. With these improvements the project will address its needs
as a part of the annexation process outlined in the MOA.
Section 14, above, of this Initial Study includes additional details regarding transportation infrastructure included in the
Proposed Project.
a-b) The proposed annexation area is approximately 90 percent built-out, and generates traffic on existing road and highway
infrastructure under existing conditions. Future development would be subject to transportation impact fee programs.
Transportation improvements provided under the MOA and PFS include upgrading street signs, striping, sidewalk repairs,
handicapped access features and curb painting reflect city standards. The annexation area does not include street lighting that
would conflict with City Lighting and Night Sky Preservation standards identified Zoning Regulations Chapter 17.70.100.
For possible safety considerations, streetlights at the main entry streets of Fiero and Clarion are under consideration as part of
the improvements plan preparation. This will be subject to AASP lighting standards (Goal 5.18, Standards 5.18.1 through
5.18.7), which include provisions for maximum height (30 feet on Broad Street, 20 feet on other streets). The proposed
annexation will not conflict with City Circulation Element policies, nor be contrary to established transportation
management, public transit and roadway improvement policies of the city.
c) The subject site is approximately 90 percent built-out, and will not require new public roads to access the subject
properties. The annexation of the subject property does not include changes in traffic patterns for vehicles or aircraft.
Therefore, potential impacts would be less than significant.
d) No changes in design of existing roadways are required by the proposed annexation; therefore, potential impacts would be
less than significant.
e) The subject site is approximately 90 percent built-out and will not require new access to provide for emergency response.
Therefore, potential impacts would be less than significant.
f) Existing public transit services and bicycle/pedestrian ways will not be changed. Increased improvements to sidewalks,
handicapped accessibility and similar facilities are anticipated as part of the final annexation improvement plan. The
proposed annexation will not conflict with established public transit, bicycle or pedestrian facilities or policies and
regulations governing same.
Conclusion: Less than significant impact.
17. TRIBAL CULTURAL RESOURCES. Would the project cause a substantial adverse change in the significance of
a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural
landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object
with cultural value to a California Native American tribe, and that is:
a) Listed or eligible for listing in the California Register of
Historical Resources, or in a local register of historical resources
as defined in Public Resources Code section 5020.1(k), or
2,4,
17
X
b) A resource determined by the lead agency, in its discretion and 2,4,
Item 13
Packet Page 129
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
29
supported by substantial evidence, to be significant pursuant to
criteria set forth in subdivision (c) of Public Resources Code
Section 5024.1. In applying the criteria set forth in subdivision
(c) of Public Resources Code Section 5024.1, the lead agency
shall consider the significance of the resource to a California
Native American tribe.
17
X
Evaluation
On December 21, 2018, local Native American tribal groups were formally noticed that an Initial Study of Environmental
Impact was being completed for the proposed project and invited to provide consultation on the proposed project. The
Northern Chumash Tribal Council engaged in a tribal consultation meeting on February 8, 2019 and noted that the existence
of development and infrastructure within the annexation area does not preclude the presence of cultural resources.
a, b) Based on the certified AASP FEIR and tribal consultation, no historical resources or tribal cultural resources have been
identified within the subject area. Based on the adopted MND for Tract 2368, no cultural resources were documented within
the parcel proposed for the relocated wastewater treatment package plant. In addition, pursuant to the adopted MND for Tract
2368, relocation of the plant within this area is subject to the following mitigation measure:
Mitigation Measure
CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or paleontological resources are
unearthed or discovered during any construction activities, the following standards apply:
c. Construction activities shall cease, and the Environmental Coordinator and Planning Department shall be notified so that
the extent and location of discovered materials may be recorded by a qualified archaeologist, and disposition of artifacts
may be accomplished in accordance with state and federal law, and in consultation with local Native American tribal
organizations.
d. In the event archaeological resources are found to include human remains, or in any other case where human remains are
discovered during construction, the County Coroner is to be notified in addition to the Planning Department and
Environmental Coordinator so that proper disposition may be accomplished.
Infrastructure improvements would occur within existing roadways and utility corridors. In the unlikely event of resource
discovery, City of San Luis Obispo Archaeological Resource Preservation Program Guidelines Section 4.60.1 requires that
all construction activities that may disrupt those materials shall cease and the Community Development Director shall be
notified immediately of the discovery of archaeological materials. Based on the results of cultural resource studies within the
subject area, location of infrastructure improvements, and compliance with adopted Guidelines in place to protect cultural
resources upon inadvertent and unlikely discovery, potential impacts would be less than significant.
Conclusion: Less than significant impact upon implementation of identified mitigation measures.
18. UTILITIES AND SERVICE SYSTEMS. Would the project:
a) Exceed wastewater treatment requirements of the applicable
Regional Water Quality Control Board?
2,4,10 X
b) Require or result in the construction or expansion of new water
treatment, waste water treatment, water quality control, or storm
drainage facilities, the construction of which could cause
significant environmental effects?
2,4,
10,17 X
c) Require or result in the construction of new storm water
drainage facilities or expansion of existing facilities, the
construction of which could cause significant environmental
effects?
2,4,10
X
d) Have sufficient water supplies available to serve the project
from existing entitlements and resources, or are new and
expanded water resources needed?
2,4,
10,18,
19
X
Item 13
Packet Page 130
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
30
e) Result in a determination by the wastewater treatment provider
which serves or may serve the project that it has adequate
capacity to serve the project’s projected demand in addition to
the provider’s existing commitment?
2,4,10
X
f) Be served by a landfill with sufficient permitted capacity to
accommodate the project’s solid waste disposal needs?
2,4,10 X
g) Comply with federal, state, and local statutes and regulations
related to solid waste?
2,4,10 X
Evaluation
The LUCE EIR evaluated potential impacts of build-out, including build-out of adopted Specific Plans. The City’s General
Plan addresses build-out of the City, including annexation areas (and including the subject site). The City’s General Plan and
2018 Water and Wastewater Element conclude that there is adequate water supply to serve build-out of the General Plan
(including the subject annexation area).
The proposed annexation area is currently served by the Fiero Lane Water company, groundwater wells, collection system,
and a community wastewater treatment plan. The proposed project involving annexation of the subject properties would
require the service of water, wastewater and recycled water for irrigation. The 2015 AASP FEIR Addendum updated and
analyzed resource availability and service demands for the EACP / S-G annexation area and found the City’s capacity for
services to the area can support the annexation. Continued interim service by the City to existing uses in the County, and the
future annexation of those existing uses, are subject to the March 2016 “Plan For Services” for the Fiero Land-Clarion Court
Annexation Area (Source 10).
Provisions from the 2015-2019 MOA Concerning Potable Water:
1. Record easements for CITY facilities on private property.
2. Pressure and leak test existing water mains that will become CITY facilities (Fiero Lane only).
3. Public and private water mains shall be sized to meet fire flow requirements. 4. Decommission and dismantle of
groundwater collection, treatment, and pumping facilities.
5. Replace fire hydrants with CITY standard hydrants.
6. Replace all water meters. Meters shall be properly sized, accurate and meet City standards.
7. Water Services shall be upgraded to current City standard.
8. Backflow preventers shall be installed where recommended by County Cross Connection Inspector.
9. Isolation valves shall be installed.
Provisions from the 2015-2019 MOA Concerning Wastewater:
1. Work with the CITY and County Airport to facilitate the CITY takeover of that portion of the Airport gravity sewer line in
Fiero Lane.
2. Replace or rehabilitate failing portion of the Airport gravity sewer line — Manhole M 17- 15 to M17-8.
3. Fiero Lane System — Manhole M17- 18 — cut open pipe to expose invert and access flow. Manhole M 17- 18 to M 17-
19 — correct grade defects.
4. Tie over eight (8) sewer laterals on Fiero Lane to the Airport gravity sewer line or new City gravity main in Fiero Lane, if
available. Any necessary repairs to private laterals shall be made by FLWC prior to tie over.
5. Abandon existing FLWC gravity main once laterals are tied over to deeper airport gravity line.
6. The wastewater treatment system will be decommissioned, removed and left for COMPANY to salvage or dispose in
accordance with state standards.
7. Temporary and permanent easements shall be granted to the City for replacement of the existing gravity main in Fiero
Lane and the existing Airport sewer pump station. This may include the site of the existing FLWC wastewater treatment
system site, or another suitable site. FLWC will provide recorded permanent easement to the City of San Luis Obispo for
the site of the existing FLWC wastewater treatment system for the construction of a City lift station to serve the area.
The FLWC existing electrical service will be provided to the City. Clear access will be provided to the easement area
from Fiero Lane.
8. The leach fields behind Clarion Court will be abandoned in accordance with applicable code after all Clarion properties
are connected to the City wastewater collection system via private gravity or private force main connections.
Item 13
Packet Page 131
Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
31
a, b, e) The project area is currently served by a community wastewater collection and treatment system operated by the Fiero
Lane Water Company. Upon annexation, the existing treatment system will be decommissioned and infrastructure
improvements will be implemented pursuant to the MOA in order to connect the area to the City sewer wastewater collection
system. Wastewater collection and treatment demand capacity analysis has been conducted by the City’s Utilities Department
and the City determined that the wastewater collection system and Water Resources Recovery Facility has adequate capacity
to serve the AASP, including the annexation area (2015 FEIR Addendum) within the permit requirements of the State Water
Board, and as noted in Section 8 of the Plan For Services.
As noted in the project description, if the pending annexation of the East Airport Area is delayed, or improvements are not
completed at the time of the FLWC wastewater plant decommissioning, it is possible this treatment plant would be moved to
the East Airport Annexation Area to serve those users on an interim basis. The proposed parcel identified by FLWC is APN
076-512-028 (1275 Prospect) – this parcel is currently developed with existing FLWC facilities. In such a case, FLWC
proposes that treated wastewater would be conveyed via the lift station and force main on the East Airport area to the existing
disposal field currently serving the FLWC plant, west of Broad Street. This initial study assesses the potential impacts of
infrastructure improvements, including the potential relocation of the wastewater treatment plan, and concludes that potential
impacts would be less than significant, or less than significant upon implementation of mitigation measures identified in the
AASP EIR and County of San Luis Obispo Morabito-Burke MND (refer to Initial Study Sections 3 [Air Quality], 5 [Cultural
Resources], and 17 [Tribal Cultural Resources]).
Based on the City’s available capacity to serve the annexation area, completion of infrastructure improvements identified
above and incorporated into the Project Description, and implementation of identified mitigation measures, potential impacts
would be less than significant.
c) The existing subdivision was constructed with storm drain infrastructure, which will continue to function in the same
capacity following annexation. Storm drainage improvements anticipated on a regional basis were identified in the City’s
Storm Drain Master Plan for the Airport Area. These requirements are included in the AASP, Plan for Services under the
MOA and under standard city conditions for new development. New water treatment will not be required to continue current
service. Therefore, potential impacts would be less than significant.
d) Water service to the area, albeit on-going since 2015, is included in the City’s Urban Water Management Plan and General
Plan documents. The AASP-Margarita SP EIR Addendum completed in November 2015 (Source 5) finds that the city has
adequate water supplies to serve the subject annexation area. As documented in the City’s 2018 Water Resources Status
Report and Water and Wastewater Element (2018), 10,130 acre-feet of water availability is sufficient for build-out of the
City’s General Plan, including the proposed annexation area. In addition, under existing conditions, the City is providing
water to FLWC. Based on existing conditions, the City’s available capacity to serve the annexation area, and completion of
infrastructure improvements, potential impacts would be less than significant.
f-g) Evidence included with the AASP FEIR and 2015 Addendum to the FEIR reflects sufficient capacity to continue serving
the largely developed annexation area. Based on this information, and the fact that the annexation area is largely build-out
under current conditions, potential impacts would be less than significant.
Conclusion: Less than significant impact.
19. MANDATORY FINDINGS OF SIGNIFICANCE.
a) Does the project have the potential to degrade the quality of the
environment, substantially reduce the habitat of a fish or
wildlife species, cause a fish or wildlife population to drop
below self-sustaining levels, threaten to eliminate a plant or
animal community, reduce the number or restrict the range of a
rare or endangered plant or animal or eliminate important
examples of the major periods of California history or
prehistory?
X
No evidence exists that the proposed annexation of the Fiero Lane-Clarion Court area would result in impacts to local habitat
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
32
conditions, including the reduction of habitat areas, direct impacts to plant or animal species, impact the existence of any rare
or endangered species, or negatively impact cultural resources of the State.
b) Does the project have impacts that are individually limited, but
cumulatively considerable? ("Cumulatively considerable"
means that the incremental effects of a project are considerable
when viewed in connection with the effects of the past projects,
the effects of other current projects, and the effects of probable
future projects)
X
No impacts of the proposed project are identified that would be considered “individually limited” or “cumulatively
considerable.” The proposed project is consistent with the existing AASP, Land Use Element and Zoning for the
development and the cumulative impacts of developing this site were analyzed as a part of the AASP FEIR and Addendum,
Land Use and Circulation Element (LUCE) EIR.
c) Does the project have environmental effects which will cause
substantial adverse effects on human beings, either directly or
indirectly?
X
No evidence has been presented or identified that suggests the annexation of the subject area would have a negative effect or
substantial adverse effect directly or indirectly on humans.
20. EARLIER ANALYSES.
Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have
been adequately analyzed in an earlier EIR or Negative Declaration. Section 15063 (c) (3) (D). In this case a discussion
should identify the following items:
a) Earlier analysis used. Identify earlier analyses and state where they are available for review.
Airport Area Specific Plan (2014), Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans
(SCH# 2000051062; September 2003); City of San Luis Obispo Land Use and Circulation Element (LUCE) Update EIR
(2014), AASP FEIR Addendum (2015), Fiero Lane-Clarion Court Plan For Services (2016), Morabito-Burke Tract 2368
Environmental Determination ED01-322, Mitigated Negative Declaration, San Luis Obispo County, May 23, 2003, available
for review at the City Community Development Department (919 Palm Street, San Luis Obispo, CA 93401)
b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and
adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were
addressed by mitigation measures based on the earlier analysis.
Applicable excerpts, analysis and conclusions from the AASP and LUCE Update EIRs and Morabito-Burke Tract 2368
MND have been added to each impact issue area discussion.
c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation
measures which were incorporated or refined from the earlier document and the extent to which they address site-
specific conditions of the project.
N/A
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Issues, Discussion and Supporting Information Sources
Amendment of the Fiero Lane Memorandum of Agreement
Concerning Interim Service and Annexation EID-___-2018
Sources
Potentially
Significant
Issues
Potentially
Significant
Unless
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2019
33
21. SOURCE REFERENCES.
1. Fiero Lane-Clarion Court Proposed Annexation Area
2. City of SLO General Plan Land Use Element, December 2014 and Final EIR, October 2014
3. City of SLO General Plan Circulation Element, December 2014 and Final EIR, October 2014
4. Airport Area Specific Plan Updated 2014
5. City of SLO Addendum to the Final Program EIR for the Airport and Margarita Areas, November 2015
6. City of San Luis Obispo, Land Use Inventory Database
7. Website of the Farmland Mapping and Monitoring Program of the California Resources Agency:
http://www.consrv.ca.gov/dlrp/FMMP/
8. Resolution 10678; Fiero Water Company MOA, December 2015
9. Resolution 10994; Fiero Water Company First Amendment to MOA, March 2019
10. Fiero Lane / Clarion Court Plan For Services, March 2016
11. City of SLO Climate Action Plan, August 2012
12. Clean Air Plan for San Luis Obispo County, Air Pollution Control District, 2001
13. FEIR Airport Area and Margarita Area Specific Plans, 2005
14. Federal Emergency Management Agency (FEMA), Flood Map San Luis Obispo County 06077C1332G; accessed
via www.fema.gov (September 12, 2019).
15. Geotracker, State Water Resources Control Board, 2015. https://geotracker.waterboards.ca.gov/ (accessed
September 12, 2019)
16. Envirostor, Department of Toxic Substances Control. 2015. https://www.envirostor.dtsc.ca.gov/public/ (accessed
September 12, 2019)
17. Morabito-Burke Tract 2368 Environmental Determination ED01-322, Mitigated Negative Declaration, San Luis
Obispo County, May 23, 2003
18. 2018 Water Resources Status Report. 2018. https://www.slocity.org/Home/ShowDocument?id=22442
19. Water and Wastewater Element. 2018. https://www.slocity.org/home/showdocument?id=19965
Note: All documents listed above are available for review at the City of San Luis Obispo Community Development
Department, 919 Palm Street, San Luis Obispo, California (805) 781-7101.
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REQUIRED MITIGATION AND MONITORING PROGRAM
Applicable mitigation measures carried forward from the certified Airport Area Specific Plan
Final Program EIR and Mitigation and Monitoring Program; additional clarifications and new
mitigation measures applicable to the proposed project are also listed below and are
applicable to the project:
Air Quality
AQ-1: Naturally Occurring Asbestos. Naturally Occurring Asbestos (NOA) has been identified
as a toxic air contaminant by the California Air Resources Board (ARB). Under the ARB
Air Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface
Mining Operations, prior to any grading activities a geologic evaluation shall be
conducted to determine if NOA is present within the area that will be disturbed. If NOA
is not present, an exemption request must be filed with the District. If NOA is found at
the site, the applicant must comply with all requirements outlined in the Asbestos
ATCM. This may include development of an Asbestos Dust Mitigation Plan and an
Asbestos Health and Safety Program for approval by the APCD. More information on
NOA can be found at http://www.slocleanair.org/business/asbestos.asp.
AQ-2: Asbestos Material in Demolition. Demolition activities can have potential negative air
quality impacts, including issues surrounding proper handling, demolition, and disposal
of asbestos containing material (ACM). Asbestos containing materials could be
encountered during demolition or remodeling of existing buildings. Asbestos can also be
found in utility pipes/pipelines (transite pipes or insulation on pipes). If utility pipelines
are scheduled for removal or relocation or a building(s) is proposed to be removed or
renovated, various regulatory requirements may apply, including the requirements
stipulated in the National Emission Standard for Hazardous Air Pollutants (40CFR61,
Subpart M - asbestos NESHAP). These requirements include but are not limited to: 1)
notification to the APCD, 2) an asbestos survey conducted by a Certified Asbestos
Inspector, and, 3) applicable removal and disposal requirements of identified ACM.
More information on Asbestos can be found at
http://www.slocleanair.org/business/asbestos.php.
AQ-3: Developmental Burning. APCD regulations prohibit developmental burning of vegetative
material within San Luis Obispo County.
AQ-4: Permits. Portable equipment and engines 50 horsepower (hp) or greater, used during
construction activities will require California statewide portable equipment registration
(issued by the ARB) or an Air District permit. The following list is provided as a guide to
equipment and operations that may have permitting requirements, but should not be
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2
viewed as exclusive: power screens, conveyors, diesel engines, and/or crushers;
portable generators and equipment with engines that are 50 hp or greater; internal
combustion engines; unconfined abrasive blasting operations; concrete batch plants;
rock and pavement crushing; tub grinders; and, trommel screens.
AQ-5: Standard Mitigation Measures for Construction Equipment. The standard mitigation
measures for reducing nitrogen oxides (NOx), reactive organic gases (ROG), and diesel
particulate matter (DPM) emissions from construction equipment are listed below:
a. Maintain all construction equipment in proper tune according to manufacturer’s
specifications;
b. Fuel all off-road and portable diesel powered equipment with ARB certified motor
vehicle diesel fuel (non-taxed version suitable for use off-road);
c. Use diesel construction equipment meeting ARB's Tier 2 certified engines or cleaner
off-road heavy-duty diesel engines, and comply with the State off-Road Regulation;
d. Use on-road heavy-duty trucks that meet the ARB’s 2007 or cleaner certification
standard for on-road heavy-duty diesel engines, and comply with the State On-Road
Regulation;
e. Construction or trucking companies with fleets that that do not have engines in their
fleet that meet the engine standards identified in the above two measures (e.g.
captive or NOx exempt area fleets) may be eligible by proving alternative
compliance;
f. All on and off-road diesel equipment shall not idle for more than 5 minutes. Signs
shall be posted in the designated queuing areas and or job sites to remind drivers
and operators of the 5 minute idling limit;
g. Diesel idling within 1,000 feet of sensitive receptors is not permitted;
h. Staging and queuing areas shall not be located within 1,000 feet of sensitive
receptors;
i. Electrify equipment when feasible;
j. Substitute gasoline-powered in place of diesel-powered equipment, where feasible;
k. Signs that specify no idling areas must be posted and enforced at the site; and,
l. Use alternatively fueled construction equipment on-site where feasible, such as
compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel.
AQ-6: Best Available Control Technology (BACT) for Construction Equipment. If the estimated
ozone precursor emissions from the actual fleet for a given construction phase are
expected to exceed the APCD threshold of significance after the standard mitigation
measures are factored into the estimation, then BACT needs to be implemented to
further reduce these impacts. The BACT measures can include:
a. Further reducing emissions by expanding use of Tier 3 and Tier 4 off-road and 2010
on-road compliant engines;
b. Repowering equipment with the cleanest engines available; and
c. Installing California Verified Diesel Emission Control Strategies. These strategies are
listed at: http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm
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3
AQ-7: Fugitive Dust Mitigation Measures. Projects with grading areas that are less than 4-
acres and that are not within 1,000 feet of any sensitive receptor shall implement the
following mitigation measures to minimize nuisance impacts and to significantly reduce
fugitive dust emissions (contact the APCD for a list of potential dust suppressants):
a. Reduce the amount of the disturbed area where possible;
b. Use of water trucks or sprinkler systems, in sufficient quantities to prevent airborne
dust from leaving the site and from exceeding the APCD’s limit of 20% opacity for
greater than 3 minutes in any 60-minute period. Increased watering frequency would
be required whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water
should be used whenever possible. Please note that during drought conditions,
water use may be a concern and the contractor or builder shall consider the use of
an APCD-approved dust suppressant where feasible to reduce the amount of water
used for dust control;
c. All dirt stock-pile areas should be sprayed daily as needed;
d. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon
as possible, and building pads should be laid as soon as possible after grading
unless seeding or soil binders are used;
e. All of these fugitive dust mitigation measures shall be shown on grading and building
plans; and
f. The contractor or builder shall designate a person or persons to monitor the fugitive
dust emissions and enhance the implementation of the measures as necessary to
minimize dust complaints, reduce visible emissions below 20% opacity, and to
prevent transport of dust offsite. Their duties shall include holidays and weekend
periods when work may not be in progress.
g. Projects with grading areas greater than 4 acres or within 1,000 feet of any sensitive
receptor shall implement the measures above, in addition to the following additional
mitigation measures to manage fugitive dust emissions such that they do not exceed
the APCD’s 20% opacity limit (APCD Rule 401) or prompt nuisance violations
(APCD Rule 402):
1) Permanent dust control measures identified in the approved project revegetation
and landscape plans should be implemented as soon as possible, following
completion of any soil disturbing activities;
2) Exposed ground areas that are planned to be reworked at dates greater than one
month after initial grading should be sown with a fast germinating, non-invasive
grass seed and watered until vegetation is established;
3) All disturbed soil areas not subject to revegetation should be stabilized using
approved chemical soil binders, jute netting, or other methods approved in
advance by the APCD;
4) Vehicle speed for all construction vehicles shall not exceed 15 mph on any
unpaved surface at the construction site;
5) All trucks hauling dirt, sand, soil, or other loose materials are to be covered or
should maintain at least two feet of freeboard (minimum vertical distance
between top of load and top of trailer) in accordance with California Vehicle Code
(CVC) Section 23114;
6) “Track-Out” is defined as sand or soil that adheres to and/or agglomerates on the
exterior surfaces of motor vehicles and/or equipment (including tires) that may
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4
then fall onto any highway or street as described in CVC Section 23113 and
California Water Code 13304. To prevent ‘track out’, designate access points and
require all employees, subcontractors, and others to use them. Install and
operate a ‘track-out prevention device’ where vehicles enter and exit unpaved
roads onto paved streets. The ‘track-out prevention device’ can be any device or
combination of devices that are effective at preventing track out, located at the
point of intersection of an unpaved area and a paved road. Rumble strips or steel
plate devices need periodic cleaning to be effective. If paved roadways
accumulate tracked out soils, the track-out prevention device may need to be
modified;
7) Sweep streets at the end of each day if visible soil material is carried onto
adjacent paved roads. Water sweepers shall be used with reclaimed water where
feasible. Roads shall be pre-wetted prior to sweeping when feasible.
Air Quality Monitoring Program: These conditions shall be noted on all project grading and
building plans. The applicant will also be required to comply with existing regulations and
secure necessary permits from the Air Pollution Control District (APCD) before the onset of
grading or demolition activities including, but not limited to additional dust control measures,
and evaluation for Naturally Occurring and Material Containing Asbestos. The applicant shall
present evidence of a plan for complying with these requirements prior to issuance of a
grading or building permit from the City. The applicant shall provide the City with the name and
telephone number of the person responsible for ensuring compliance with these requirements.
The Building Inspector and Community Development and Public Works Inspectors shall
conduct field monitoring.
Cultural Resources and Tribal Cultural Resources
CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or
paleontological resources are unearthed or discovered during any construction
activities, the following standards apply:
a. Construction activities shall cease, and the Environmental Coordinator and Planning
Department shall be notified so that the extent and location of discovered materials
may be recorded by a qualified archaeologist, and disposition of artifacts may be
accomplished in accordance with state and federal law, and in consultation with local
Native American tribal organizations.
b. In the event archaeological resources are found to include human remains, or in any
other case where human remains are discovered during construction, the County
Coroner is to be notified in addition to the Planning Department and Environmental
Coordinator so that proper disposition may be accomplished.
Cultural Resources and Tribal Cultural Resources Monitoring Program: Requirements for
cultural resource mitigation, in the event of unforeseen encounter of materials during the
potential relocation of the wastewater treatment facility, shall be clearly noted on all plans for
project grading and construction. Compliance will be verified by the Community Development
Director.
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Via Email
October 21, 2019
Shawna Scott
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
sscott@slocity.org
SUBJECT: APCD Comments Regarding the Fiero Lane and Clarion Court Annexation
(EID-0626-2019/PL-ANNX-1166-2015)
Dear Ms. Scott:
Thank you for including the San Luis Obispo County Air Pollution Control District (APCD) in
the environmental review process. We have completed our review of the proposed Fiero
Lane, and Clarion Court Annexation project located in San Luis Obispo.
The proposed project includes the annexation of approximately 39 acres of property into
the City of San Luis Obispo. The site consists of 30 existing parcels located along Fiero
Lane, Clarion Court, and a portion of Santa Fe Road. Upon annexation, water, recycled
water, and wastewater services would be converted to connect to City utility systems, and
the existing wastewater treatment plan would be decommissioned and potentially
relocated to 1275 Prospect Lane. Infrastructure improvements would include, but not be
limited to installation of new water meters, installation of recycled water main on Broad
Street, reconfiguration of sewer laterals on Fiero Lane, and pavement rehabilitation and
sidewalk repairs.
The proposed Initial Study/Mitigated Negative Declaration (IS/MND) includes mitigation
measures stated in Section 3. Air Quality that were carried forwarded from the certified
Airport Specific Plan Final Program Environmental Impact Report. Residential dwellings are
within 1,000 feet of the proposed annexation area.
The following are APCD comments that are pertinent to this project.
GENERAL COMMENTS
As a commenting agency in the California Environmental Quality Act (CEQA) review process
for a project, the APCD assesses air pollution impacts from both the construction and
operational phases of a project, with separate significant thresholds for each. Please
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APCD Comments for the Fiero Lane and Clarion Court Annexation Project
October 21, 2019
Page 2 of 4
address the items contained in this letter that are highlighted by bold and underlined text .
CONSTRUCTION PHASE
Construction Phase Impacts
The proposed IS/MND includes mitigation measures stated in Section 3. Air Quality that were carried
forwarded from the certified Airport Specific Plan Final Program Environmental Impact Report.
These measures include the APCD’s language for naturally occurring asbestos (AQ-1), asbestos
material in demolition (AQ-2), developmental burning (AQ-3), construction permit requirements (AQ-
4), standard control measures for construction equipment (AQ-5), best available control technology
(AQ-6) and the short list for fugitive dust mitigation measures (AQ-7).
AQ-1 through 6 are consistent with the APCD’s analysis of the proposed project and the APCD
supports the inclusion of these measures in the conditions of approval for the project.
However, because sensitive receptors are within 1,000 feet of the project, the APCD’s long list
of dust control measures is required and to minimize toxic air pollution impacts from idling
diesel engines, the APCD is also requiring mitigation to minimize impacts to sensitive
receptors. These two mitigation measures are stated below.
Dust Control Measures
This project is within 1,000 feet of residential dwellings. Construction activities can generate fugitive
dust, which could be a nuisance to residents and businesses in close proximity to the proposed
construction site. Projects with grading areas greater than 4-acres or within 1,000 feet of any
sensitive receptor shall implement the following mitigation measures to manage fugitive
dust emissions such that they do not exceed the APCD’s 20% opacity limit (APCD Rule 401) or
prompt nuisance violations (APCD Rule 402).
a. Reduce the amount of the disturbed area where possible;
b. Use of water trucks or sprinkler systems in sufficient quantities to prevent airborne dust
from leaving the site and from exceeding the APCD’s limit of 20% opacity for greater than 3
minutes in any 60-minute period. Increased watering frequency would be required
whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water should be used
whenever possible. When drought conditions exist and water use is a concern, the
contractor or builder should consider the use of an APCD-approved dust suppressant
where feasible to reduce the amount of water used for du st control. Please refer to the
following link from the San Joaquin Valley Air District for a list of potential dust suppressants:
Products Available for Controlling Dust;
c. All dirt stockpile areas should be sprayed daily and covered with tarps or other dust barriers
as needed;
d. Permanent dust control measures identified in the approved project revegetation and
landscape plans should be implemented as soon as possible, following completion of any
soil disturbing activities;
e. Exposed ground areas that are planned to be reworked at dates greater than one month
after initial grading should be sown with a fast germinating, non-invasive grass seed and
watered until vegetation is established;
f. All disturbed soil areas not subject to revegetation should be stabilized using approved
chemical soil binders, jute netting, or other methods approved in advance by the APCD;
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APCD Comments for the Fiero Lane and Clarion Court Annexation Project
October 21, 2019
Page 3 of 4
g. All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as
possible. In addition, building pads should be laid as soon as possible after grading unless
seeding or soil binders are used;
h. Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface
at the construction site;
i. All trucks hauling dirt, sand, soil, or other loose materials are to be covered or should
maintain at least two feet of freeboard (minimum vertical distance between top of load and
top of trailer) in accordance with California Vehicle Code (CVC) Section 23114;
j. “Track-Out” is defined as sand or soil that adheres to and/or agglomerates on the exterior
surfaces of motor vehicles and/or equipment (including tires) that may then fall onto any
highway or street as described in CVC Section 23113 and California Water Code 13304. To
prevent ‘track out’, designate access points and require all employees, subcontractors, and
others to use them. Install and operate a ‘track -out prevention device’ where vehicles enter
and exit unpaved roads onto paved streets. The ‘track -out prevention device’ can be any
device or combination of devices that are effective at preventing track out, located at the
point of intersection of an unpaved area and a paved road. Rumble strips or steel plate
devices need periodic cleaning to be effective. If paved roadways accumulate tracked out
soils, the track-out prevention device may need to be modified;
k. Sweep streets at the end of each day if visible soil material is carried onto adjacent paved
roads. Water sweepers shall be used with reclaimed water where feasible. Roads shall be
pre-wetted prior to sweeping when feasible;
l. All PM10 mitigation measures required should be shown on grading and building plans; and
m. The contractor or builder shall designate a person or persons whose responsibility is to
ensure any fugitive dust emissions do not result in a nuisance and to enhance the
implementation of the mitigation measures as necessary to minimize dust complaints and
reduce visible emissions below the APCD’s limit of 20% opacity for greater than 3 minutes in
any 60-minute period. Their duties shall include holidays and weekend periods when work
may not be in progress (for example, wind-blown dust could be generated on an open dirt
lot). The name and telephone number of such persons shall be provided to the APCD
Compliance Division prior to the start of any grading, earthwork or demolition (Contact Tim
Fuhs at 805-781-5912).
Limits of Idling during Construction Phase
State law prohibits idling diesel engines for more than 5 minutes. All projects with diesel-powered
construction activity shall comply with Section 2485 of Title 13 of the California Code of
Regulations and the 5-minute idling restriction identified in Section 2449(d)(2) of the
California Air Resources Board’s In-Use Off-Road Diesel regulation to minimize toxic air
pollution impacts from idling diesel engines. The specific requirements and exceptions for the
on-road and off-road regulations can be reviewed at the following web sites:
arb.ca.gov/msprog/truck-idling/factsheet.pdf and arb.ca.gov/regact/2007/ordiesl07/frooal.pdf .
In addition, because this project is within 1,000 feet of sensitive receptors residential dwellings, the
project applicant shall comply with the following more restrictive requirements to minimize impacts
to nearby sensitive receptors.
1. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors;
2. Diesel idling within 1,000 feet of sensitive receptors shall not be permitted;
3. Use of alternative fueled equipment is recommended; and
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APCD Comments for the Fiero Lane and Clarion Court Annexation Project
October 21, 2019
Page 4 of 4
4. Signs that specify no idling areas must be posted and enforced at the site.
Again, thank you for the opportunity to comment on this proposal. If you have any questions or
comments, feel free to contact me at (805) 781-5912.
Sincerely,
JACKIE MANSOOR
Air Quality Specialist
JNM/jjh
cc: Tim Fuhs, APCD
Dora Drexler, APCD
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Minutes -Draft
Planning Commission
CALL TO ORDER
Regular Meeting
Wednesday, October 9, 2019
A Regular Meeting of the San Luis Obispo Planning Commission was called to order on
Wednesday, October 9, 2019 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San
Luis Obispo, California, by Vice Chair Dandekar.
ROLL CALL
Present:
Absent:
Staff:
Commissioners Robert Jorgensen, Steve Kahn, John McKenzie, Nicholas
Quincey, Vice-Chair Hemalata Dandekar.
Commissioner Charles Stevenson and Chair Mike Wulkan
Community Development Director Michael Codron, Principal Planner Tyler
Corey, Assistant City Attorney Charles Bell, Deputy City Clerk Kevin Christian
and as noted.
PLEDGE OF ALLEGIANCE
Vice Chair Dandekar led the Pledge of Allegiance.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
None.
--End of Public Comment--
CONSENT AGENDA
1.Consideration of the Planning Commission meeting Minutes of September 25, 2019.
ACTION: MOTION BY COMMISSIONER MCKENZIE SECOND BY COMMISSIONER
JORGENSEN CARRIED 5-0-2 (Commissioners Stevenson and Wulkan absent) to approve
the minutes of September 25, 2019.
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Planning Commission Meeting Minutes - DRAFT
October 9, 2019
Page 2 of3
PUBLIC HEARINGS
Commissioner Quincey recused himself and left the meeting at this time, noting a possible conflict
with his employment position for the County of San Luis Obispo.
2.Project Address: 850 Fiero. Review of the proposed annexation of approximately 39 acres of
property along Fiero Lane and Clarion Court; this action includes consideration of an Initial
Study/Mitigated Negative Declaration tiered from the Final Program Environmental Impact
Report for the Airport Area and Margarita Area Specific Plans and Related Facilities Master
Plans (SCH#2000051062). Case#: ANNX-1166-2015, Zone: Easement; Fiero Lane Water
Company, applicant; Len Family Trust, owner.
Senior Planner Shawna Scott introduced consulting Planner David Watson. Mr. Watson and
Ms. Scott presented the staff report and responded to Commission inquiries.
Applicant representatives Bob Miller, General Manager Fiero Lane Water Company, and Matt
Quaglino, President Fiero Lane Water Company, summarized the intent of their request for
annexation and responded to Commission inquiries.
Vice Chair Dandekar opened the public hearing.
Public Comments
Matt Quaglino
Carol Florence
--End of Public Comment--
Vice Chair Dandekar closed the public hearing.
ACTION: MOTION BY COMMISSIONER KAHN, SECOND BY COMMISSIONER
JORGENSEN, CARRIED 4-0-1-2 (Commissioner Quincey recused, Commissioners
Stevenson and Wulkan absent) to recommend approval of the proposed annexation and
adoption of the Initial Study I Mitigated Negative Declaration, subject to findings and
conditions.
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October 9, 2019
Page 3 of3
COMMENT AND DISCUSSION
3.Staff Updates & Agenda Forecast
Principal Planner Tyler Corey provided an update of upcoming projects.
ADJOURNMENT
The meeting was adjourned at 7: 10 p.m. The next Regular meeting of the Planning Commission
is scheduled for Wednesday, October 23, 2019 at 6:00 p.m., in the Council Chamber, 990 Palm
Street, San Luis Obispo, California.
APPROVED BY THE PLANNING COMMISSION: XX/XX/2019
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RESOLUTION NO. (2019 SERIES)
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF SAN LUIS OBISPO, CALIFORNIA, RECOMMENDING
APPROVAL OF THE ANNEXATION OF THE FIERO LANE-
CLARION COURT PROPERTIES (FIERO LANE WATER
COMPANY, FLWC) TO THE CITY OF SAN LUIS OBISPO (PL-
ANNX-1166-2015, EID-0626-2019)
WHEREAS, on December 1, 2015 the City Council adopted a Memorandum of Agreement
between the City and FLWC establishing a two-phased approach to annexation of the FLWC lands
to the City, as prescribed in Resolution No. 10678 (2015 Series); and
WHEREAS, on March 19, 2019 the City Council adopted a First Amendment to the 2015
Memorandum of Agreement agreeing to revise the schedule for completion of the annexation and
extending the time for consideration of the annexation with the Local Agency Formation Commission
(LAFCO), as prescribed in Resolution No. 10994 (2019 Series); and
WHEREAS, the referenced MOAs and the 2016 FLWC “Plan For Services” include details
on the studies, analysis, scheduling and financing of the consideration of said annexation and the
needed public and private infrastructure improvements to be completed as part of any annexation; and
WHEREAS, the City is actively working with the applicants and their consultants on
detailing the various improvements and implementation of the financing plans to complete said
improvements; and
WHEREAS, all the requirements, conditions and implementing measures of said Resolutions
No. 10678 and 10994 have been met by the applicants in order to consider the annexation; and
WHEREAS, a duly noticed Public Hearing before the Planning Commission was held on
September 25, 2019 to consider testimony and input on the proposed annexation, needed public and
private infrastructure improvements, development impact fees and charges to be paid to the City,
environmental considerations for the annexation, and review of the timing and implementation of said
fees and improvements; and
WHEREAS, environmental analysis of the proposed annexation has been guided by
previous work in the form of the Airport Area and Margarita Area Specific Plans Final EIR (2005),
FEIR Addendum for the Airport Area and Margarita Area Specific Plans (2015), and the City of
SLO General Plan Land Use and Circulation Elements (LUCE) FEIR (2014); and
WHEREAS, an Initial Study of environmental impact was prepared for the proposed
annexation, which tiers from the certified Final EIR for the Airport Area and Margarita Area
Specific Plans, documents whether there have been changed circumstances since those referenced
EIRs were completed, analyzes consistency of the annexation with the General Plan and Airport
Area Specific Plan, and identifies mitigation measures that would be required to mitigate
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potentially significant impacts resulting from the annexation process and the construction of
needed infrastructure (new or rehabilitation) to support City services to the areas; and
WHEREAS, the conclusion of the Initial Study of environmental impact is that by
incorporating the needed infrastructure features of the 2015 and 2019 MOAs, as well as the 2016 Plan
For Services, in addition to and as a direct result of the analysis of the noted EIRs, and implementing
noted mitigation measures, any significant effects of the annexation and provision of infrastructure
services to the area would result in a less than significant effect on the environment.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San
Luis Obispo as follows:
SECTION 1. CEQA Findings, Mitigation Measures, and Mitigation Monitoring
Program. Based upon all the evidence, the Planning Commission recommends that the City
Council adopt the following California Environmental Quality Act (CEQA) findings in support of
the project:
a)The proposed project, as conditioned herein, is consistent with the requirements of
the certified Airport Area and Margarita Area Specific Plans and Related Facilities
Master Plans Final Environmental Impact Report (FEIR) (SCH# 2000051062), and
this action incorporates those FEIR mitigation measures as detailed herein.
b)A supplemental, tiered, initial study has been prepared for the project, which
addresses potential environmental impacts resulting from the proposed project, and
the Community Development Director has recommended that the results of that
additional analysis be incorporated into a Mitigated Negative Declaration (MND)
of environmental impacts, and recommends adoption of identified mitigation
measures, all of which are incorporated below.
c)All potentially significant effects were analyzed adequately in the referenced FEIR
and IS/MND, subject to the following mitigation measures being incorporated into
the project and the mitigation monitoring program:
Air Quality
AQ-1: Naturally Occurring Asbestos. Naturally Occurring Asbestos (NOA) has been identified as
a toxic air contaminant by the California Air Resources Board (ARB). Under the ARB Air
Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface
Mining Operations, prior to any grading activities a geologic evaluation shall be conducted
to determine if NOA is present within the area that will be disturbed. If NOA is not present,
an exemption request must be filed with the District. If NOA is found at the site, the
applicant must comply with all requirements outlined in the Asbestos ATCM. This may
include development of an Asbestos Dust Mitigation Plan and an Asbestos Health and
Safety Program for approval by the APCD. More information on NOA can be found at
http://www.slocleanair.org/business/asbestos.asp.
AQ-2: Asbestos Material in Demolition. Demolition activities can have potential negative air
quality impacts, including issues surrounding proper handling, demolition, and disposal of
asbestos containing material (ACM). Asbestos containing materials could be encountered
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during demolition or remodeling of existing buildings. Asbestos can also be found in utility
pipes/pipelines (transite pipes or insulation on pipes). If utility pipelines are scheduled for
removal or relocation or a building(s) is proposed to be removed or renovated, various
regulatory requirements may apply, including the requirements stipulated in the National
Emission Standard for Hazardous Air Pollutants (40CFR61, Subpart M - asbestos
NESHAP). These requirements include but are not limited to: 1) notification to the APCD,
2) an asbestos survey conducted by a Certified Asbestos Inspector, and, 3) applicable
removal and disposal requirements of identified ACM. More information on Asbestos can
be found at http://www.slocleanair.org/business/asbestos.php.
AQ-3: Developmental Burning. APCD regulations prohibit developmental burning of vegetative
material within San Luis Obispo County.
AQ-4: Permits. Portable equipment and engines 50 horsepower (hp) or greater, used during
construction activities will require California statewide portable equipment registration
(issued by the ARB) or an Air District permit. The following list is provided as a guide to
equipment and operations that may have permitting requirements, but should not be viewed
as exclusive: power screens, conveyors, diesel engines, and/or crushers; portable
generators and equipment with engines that are 50 hp or greater; internal combustion
engines; unconfined abrasive blasting operations; concrete batch plants; rock and pavement
crushing; tub grinders; and, trommel screens.
AQ-5: Standard Mitigation Measures for Construction Equipment. The standard mitigation
measures for reducing nitrogen oxides (NOx), reactive organic gases (ROG), and diesel
particulate matter (DPM) emissions from construction equipment are listed below:
a.Maintain all construction equipment in proper tune according to manufacturer’s
specifications;
b. Fuel all off-road and portable diesel powered equipment with ARB certified motor
vehicle diesel fuel (non-taxed version suitable for use off-road);
c.Use diesel construction equipment meeting ARB's Tier 2 certified engines or cleaner
off-road heavy-duty diesel engines, and comply with the State off-Road Regulation;
d.Use on-road heavy-duty trucks that meet the ARB’s 2007 or cleaner certification
standard for on-road heavy-duty diesel engines, and comply with the State On-Road
Regulation;
e.Construction or trucking companies with fleets that that do not have engines in their
fleet that meet the engine standards identified in the above two measures (e.g. captive
or NOx exempt area fleets) may be eligible by proving alternative compliance;
f.All on and off-road diesel equipment shall not idle for more than 5 minutes. Signs shall
be posted in the designated queuing areas and or job sites to remind drivers and
operators of the 5 minute idling limit;
g.Diesel idling within 1,000 feet of sensitive receptors is not permitted;
h.Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors;
i.Electrify equipment when feasible;
j.Substitute gasoline-powered in place of diesel-powered equipment, where feasible;
and,
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k.Use alternatively fueled construction equipment on-site where feasible, such as
compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel.
AQ-6: Best Available Control Technology (BACT) for Construction Equipment. If the estimated
ozone precursor emissions from the actual fleet for a given construction phase are expected
to exceed the APCD threshold of significance after the standard mitigation measures are
factored into the estimation, then BACT needs to be implemented to further reduce these
impacts. The BACT measures can include:
a.Further reducing emissions by expanding use of Tier 3 and Tier 4 off-road and 2010
on-road compliant engines;
b.Repowering equipment with the cleanest engines available; and
c.Installing California Verified Diesel Emission Control Strategies. These strategies are
listed at: http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm
AQ-7: Fugitive Dust Mitigation Measures. Projects with grading areas that are less than 4-acres
and that are not within 1,000 feet of any sensitive receptor shall implement the following
mitigation measures to minimize nuisance impacts and to significantly reduce fugitive dust
emissions:
a.Reduce the amount of the disturbed area where possible;
b.Use of water trucks or sprinkler systems, in sufficient quantities to prevent airborne
dust from leaving the site and from exceeding the APCD’s limit of 20% opacity for
greater than 3 minutes in any 60-minute period. Increased watering frequency would
be required whenever wind speeds exceed 15 mph. Reclaimed (non-potable) water
should be used whenever possible. Please note that during drought conditions, water
use may be a concern and the contractor or builder shall consider the use of an APCD-
approved dust suppressant where feasible to reduce the amount of water used for dust
control;
c.All dirt stock-pile areas should be sprayed daily as needed;
d.All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as
possible, and building pads should be laid as soon as possible after grading unless
seeding or soil binders are used;
e.All of these fugitive dust mitigation measures shall be shown on grading and building
plans; and
f.The contractor or builder shall designate a person or persons to monitor the fugitive
dust emissions and enhance the implementation of the measures as necessary to
minimize dust complaints, reduce visible emissions below 20% opacity, and to prevent
transport of dust offsite. Their duties shall include holidays and weekend periods when
work may not be in progress.
Air Quality Monitoring Program: These conditions shall be noted on all project grading and
building plans. The applicant will also be required to comply with existing regulations and secure
necessary permits from the Air Pollution Control District (APCD) before the onset of grading or
demolition activities including, but not limited to additional dust control measures, and evaluation
for Naturally Occurring and Material Containing Asbestos. The applicant shall present evidence
of a plan for complying with these requirements prior to issuance of a grading or building permit
from the City. The applicant shall provide the City with the name and telephone number of the
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person responsible for ensuring compliance with these requirements. The Building Inspector and
Community Development and Public Works Inspectors shall conduct field monitoring.
Cultural Resources and Tribal Cultural Resources
CR-1: Unanticipated cultural resource discovery. In the event archaeological, historic, or
paleontological resources are unearthed or discovered during any construction activities,
the following standards apply:
a.Construction activities shall cease, and the Environmental Coordinator and Planning
Department shall be notified so that the extent and location of discovered materials may
be recorded by a qualified archaeologist, and disposition of artifacts may be
accomplished in accordance with state and federal law, and in consultation with local
Native American tribal organizations.
b.In the event archaeological resources are found to include human remains, or in any
other case where human remains are discovered during construction, the County
Coroner is to be notified in addition to the Planning Department and Environmental
Coordinator so that proper disposition may be accomplished.
Cultural Resources and Tribal Cultural Resources Monitoring Program: Requirements for
cultural resource mitigation, in the event of unforeseen encounter of materials during the potential
relocation of the wastewater treatment facility, shall be clearly noted on all plans for project
grading and construction. Compliance will be verified by the Community Development Director.
SECTION 2. Action, Findings and Conditions. The Planning Commission hereby
recommends the City Council 1) approve the filing of an application for annexation of the Fiero Lane-
Clarion Court area and direct the Community Development Director to process the application with
San Luis Obispo Local Agency Formation Commission (LAFCO) and 2) authorize the City Manager
to execute any documents in a form approved by the City Attorney related to the annexation of the
subject lands to the City of San Luis Obispo, based on the following findings and subject to the
following conditions of approval:
Findings:
1.The project area is identified in the Airport Area Specific Plan as a future annexation area,
and no changes to identified pre-zoning or General Plan land use designations are
proposed. The proposed annexation is consistent with the Airport Area Specific Plan,
which was determined to be consistent with the San Luis Obispo County Airport Land
Use Plan.
2.The proposed annexation is consistent with the General Plan, including Policies 1.13.3
(Annexation Purpose and Timing) and 1.13.5 (Annexation in Airport Area) because the
proposed project satisfies all the prerequisites identified under 1.13.5 and pre-zoning was
established upon adoption of the Airport Area Specific Plan, which is a prerequisite for
allowing development on the site under the City’s General Plan.
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3.The Fiero Lane-Clarion Court area is within the City’s Sphere of Influence as defined by
LAFCO, which is an area designated for eventual annexation provided that City services
can be provided, and that annexation is otherwise consistent with LAFCO policies.
4.The Memorandum of Agreement and Plan for Services provides a framework for
providing the necessary City services.
Conditions of Approval:
1.In compliance with the adopted First Amendment to the Memorandum of Agreement, if
re-location of the existing wastewater treatment facility is required in order to continue
service to the East Airport area, prior to completion of annexation the applicant shall
submit documentation verifying that the Fiero Lane Water Company has submitted an
application to the Regional Water Quality Control Board for any required permits and
authorizations related to the wastewater treatment plant and associated disposal of treated
wastewater. To ensure implementation of the re-location of the wastewater treatment
facility, prior to submittal of an annexation application to the San Luis Obispo County
Local Agency Formation Commission (LAFCO) the applicant shall provide financial
assurance in the form of a bond, to be approved by the City Utilities Director.
2.The applicant shall construct improvements and upgrades to Fiero Lane so as to bring
the street infrastructure into a " state of good repair". For purposes of this requirement,
the definition of state of good repair includes:
a.Upgrading traffic control signs and markings to meet current federal, State and City
standards;
b.Upgrade street crossings to meet Federal and City ADA ramp and crossing
standards;
c.Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements;
d.Remove and replace any damaged sections of sidewalk.
3.The applicant shall establish City-controlled public right-of-way access to parcels 076-
401-043, 076-400-001, 076-401-065 & 076-041-032, which are included within the
proposed annexation area, but are not accessible via right-of-way. This may require
subdivision of County-owned parcel 076-401-068 and transfer of the portion that
includes the existing access road to the City.
4.The applicant shall exhaust all reasonable efforts to establish a reciprocal access
agreement across parcel 076-413-038 to provide a potential future street connection
and/or emergency access between Clarion Court and Fiero Lane.
5.Old Santa Fe Road south of the City/County boundary line, located immediately south
of the Santa Fe Bridge shall remain under County jurisdiction after annexation of
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properties on Clarion Court. If as part of the LAFCO process, the City is required to
take all, or part, of Old Santa Fe Road under City jurisdiction, the following
requirements shall be required by the applicant:
a.Construct improvements and upgrades to the portion of Old Santa Fe Road that is
to be annexed to the City so as to bring the street infrastructure into a "state of good
repair". For purposes of this requirement, the definition of state of good repair
includes:
i.Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
ii.Upgrade street crossings at Clarion Court and the mini storage property to
meet Federal and City ADA ramp and crossing standards; and
iii.Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
The limits of required improvements begin at the south side of the existing bridge
across the East Fork of San Luis Creek and terminate at the cul-de-sac fronting the mini
storage property. No improvements to the bridge are proposed.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Tyler Corey, Secretary
Planning Commission
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Department Name: Utilities
Cost Center: 6001
For Agenda of: November 19, 2019
Placement: Business Item
Estimated Time: 45 min
FROM: Aaron Floyd, Utilities Director
PREPARED BY: Mychal Boerman, Deputy Director - Water
Jason Meeks, Water Treatment Plant Supervisor
Jennifer Metz, Utilities Project Manager
SUBJECT: WATER ENERGY EFFICIENCY PROJECT
RECOMMENDATION
1. Receive the Water Energy Efficiency Project Investment Grade Audit (Attachment A).
2. Authorize the City Manager to execute a Work Order, upon approval of the City Attorney as
to form, to enter into agreement with PG&E for implementation of the Water Energy
Efficiency Project (Project) at a not to exceed cost of $13,999,644 (Attachment B).
3. Approve Resolution (Attachment C) for the use of Water Fund Unreserved Working Capital
to provide adequate cash flow when considered necessary for Project implementation and
authorize the Finance Director to execute any and all certificates, contracts, and other
documents necessary to secure project financing.
4. Authorize the City Manager to execute a no-cost, 50-year ground lease (Attachment D) with
Cal Poly for 0.5 acres adjacent to the City’s Water Treatment Plant on Stenner Creek Road.
REPORT-IN-BRIEF
The City’s Water Energy Efficiency Project (Project) involves a public/private partnership with
Pacific Gas and Electric (PG&E) available for streamlined implementation of energy projects
under PG&E’s Sustainable Solutions Turnkey (SST) program. Staff began working with a team
of engineers from PG&E to identify the most economical and viable energy projects for the City
to undertake at Water Division facilities in July 2016. Staff from the Utilities Department
worked with the PG&E team through June 2019 on pilot studies and the Project’s preliminary
design. Due to the specialty nature of the work and the current economic climate, construction
bids were higher than anticipated causing staff to revisit Water Treatment Plant (WTP) capital
priorities.
Staff’s recommended approach is to complete the Project in two implementation phases
including an Efficiency Phase and a future Resiliency Phase. Efficiency Phase project
components include upgrading the WTP ozone generation system, Supervisory Control and Data
Acquisition (SCADA) system, plant service water, and improvements to the Transfer Pump
Station. Staff is also proposing to include the delivery of a Resiliency Phase component, a
permanent backup generator for the WTP, with the Project.
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At a cost of approximately $14 million, the Efficiency Phase of the Project would contribute to
the City’s sustainability goals and advancement toward Zero Net Energy by reducing annual
energy usage at the WTP by over 600 kWh or 118 MTCO2e (Metric Tons CO2 equivalent). This
is 15 percent of the reduction target of 770 MTCO2e identified for Government Operations in
the 2012 Climate Action Plan and 29 percent of the WTP’s GHG emissions from electricity use.
Construction is estimated to take 13 months with completion estimated in early 2021. The total
Project cost is $15,984,644, including the permanent WTP generator and additional SCADA
integration services.
On May 21, 2019, the City Council approved Resolution 11011 authorizing the Utilities Director
to enter into a financing agreement with the Infrastructure Bank (IBank). As private financing
may offer more favorable terms for the Project, staff continues to explore financing alternatives
with its financial advisors at this time.
DISCUSSION
Background
Consistent with the City Council’s commitment to Climate Action, Utilities Department staff
began exploring the potential for achieving greater energy efficiency in Water Division
operations in 2016. At a public hearing on April 4, 2018, the City Council adopted Resolution
10878 (Attachment E) approving the continued participation in the SST program and authorized
the City Manager to enter into a service agreement for the Project pursuant to Government Code
section 4217.10 et seq., including the following findings:
a) The Water Energy Efficiency Project is subject to Government Code section 4217.10 et
seq. and Article IX Section 907 of the City Charter and provides unique benefits to the
public;
b) The anticipated cost to the City under the contract with PG&E will be less than the
anticipated marginal cost to the City for the electrical energy that would have been
consumed by the City in the absence of those purchases;
c) The project is exempt from Article IX Section 901 of the City Charter and is allowed by
Government Code section 4217. 10 as an energy efficiency project.
The agreement with PG&E is atypical of the City’s contracting procedures defined in Article IX,
Section 901 of the City’s Charter. However, the City’s Charter, Article IX, Section 907 exempts
energy projects and California Government Code Section 4217.10 et seq. allows the City to
forgo standard procurement processes for certain conservation energy projects if it finds it best
serves the City’s interest.
The WTP treats over five million gallons of potable drinking water per day with an estimated
cost of $345,000 per year for electricity. The total electricity cost for the City’s water treatment
plant, water distribution system, and Whale Rock Reservoir raw water system facilities is
approximately $628,000 annually. These facilities were examined as part of the Project. Energy
used for raw water deliveries from Salinas Reservoir and Nacimiento Reservoir were not
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examined as they are operated by San Luis Obispo County.
PG&E Sustainable Solutions Turnkey (SST) Program
PG&E’s SST Program involves a prescribed approach for implementing energy conservation
projects. The goal of the SST Program is to implement energy saving projects at facilities and
reallocate the money saved from reduced energy consumption and operational maintenance costs
toward payment of the debt service for project construction. The SST Program has four stages.
Sustainable Solutions Turnkey Program.
The City’s Water Energy Efficiency Project
In April of 2018, Council reviewed the Preliminary Energy Assessment and directed staff to
proceed to the next phase of the Project, the Investment Grade Audit (IGA). Of the Energy
Conservation Measures (ECMs) identified in the Preliminary Energy Assessment, eleven were
selected for further investigation in the IGA. Preliminary cost estimates indicated that all eleven
ECMs could be constructed for $14.3 million which was established as the City’s project budget.
This project budget did not recognize a reduction in WTP operational costs from the potential
energy savings. The City had planned to debt finance the project for 30 years with the initial
payment during the 2019-20 fiscal year.
To be considered viable, ECMs must adhere to the “triple bottom line” concepts of being
environmentally, socially, and fiscally sustainable. The team investigated replacing aging
infrastructure identified in the WTP capital improvement plan, with more energy efficient
options. In order to maximize efficiencies, projects were evaluated in the context of their impact
on the entire treatment process, as opposed to being studied individually. After removing
projects that were determined to not be viable based on the triple bottom line criteria, City staff
worked with the PG&E team to complete bid documents for eight ECMs. The IGA provides an
in-depth study of the Project (eight ECMs), estimated energy savings, a set of design/build plans,
and an implementation proposal.
Bids were received for the eight ECMs on July 17, 2019 at a cost of over $24.8 million – $10.5
million over the preliminary construction estimate. Additional costs were due to the risk and
complexity of the primary disinfection (ozone generation) system design and construction effort,
the health of the economy, and a historically competitive construction market. ECMs were then
prioritized and, as critical infrastructure, replacement of the WTP ozone generation system was
identified as the ECM of greatest importance and its replacement will achieve significant energy
savings. Since July, staff has worked to categorize and prioritize other ECMs for construction
within budgetary resources. Staff’s recommended approach is to complete the Project in two
implementation phases: An Efficiency Phase and a future Resiliency Phase.
Efficiency Phase
Four ECMs are proposed for inclusion in the Project’s Efficiency Phase. These include
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upgrading the WTP ozone generation system, SCADA system, plant service water, and
improvements to the Transfer Pump Station. A summary of the Efficiency Phase projects is
provided below. A detailed description of each ECM component is available in the IGA
(Attachment A). The anticipated energy savings and the cost of each component is included in
Table 1. The expected benefits of the Efficiency Phase include:
1. Contribute to the City’s sustainability goals and
advancement toward Zero Net Energy.
2. Reduce energy consumption and greenhouse gas
emissions.
3. Replace obsolete equipment and components.
4. Improve ability to perform maintenance.
5. Improve reliability of achieving permit compliance.
6. Increase operational reliability, flexibility, and
redundancy.
7. Reduced staff requirements for manual operation.
8. Optimized system sequencing and functionality.
The Efficiency Phase ECMs will cost approximately $14 million and reduce energy usage by
over 33 percent annually from current WTP operations. Construction is estimated to take 13
months with completion estimated in early 2021.
Table 1: Efficiency Phase - Energy Savings and Cost
ECM Description Annual Energy Savings
(kWh) Efficiency Phase Cost
Ozone System 541,009 $12,133,235
Transfer Pump Station - $456,060
Plant Service Water System 70,224 $366,795
SCADA System/Controls - $1,043,554
611,233 $13,999,644
The Project would contribute to the City’s sustainability goals and advancement toward Zero Net
Energy by reducing annual energy usage at the WTP by over 600 kWh or 118 MTCO2e (Metric
Tons CO2 equivalent). This annual reduction is equal to removing vehicle trips from 25 cars for
a year1 or the annual amount of carbon sequestration achieved by 140 acres of forest.
Ozone System. The City’s existing WTP ozonation system was installed in 1994, and due to its
age is currently operating at about 50 percent efficiency. City staff worked with the PG&E team
during September 2018 to conduct a pilot study to assist with equipment sizing by identifying
maximum ozone demand for various blend ratios of the City’s three water supply sources. From
this evaluation, it was determined to replace the existing ozone generators with modular ozone
generators. The new generators will be fed by new liquid oxygen (LOx) storage and delivery
systems. The WTP will remain in operation during construction, so demolition and construction
of the ozone system will be conducted in two phases.
1 Calculated at a rate of 4.71 metric tons per vehicle per year .
Act. Adapt. Thrive.
Although some measures are not
recommended for construction
at this time due to available
budget, the City continues to
plan for resilience, and lay the
foundation for achieving carbon
neutrality by 2035.
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The contractor for the ozone system, Cushman Contracting, Inc., has completed a similar ozone
upgrade in Santa Barbara and has performed other water and wastewater work in the region
(Paso Robles, Cayucos, Nacimiento, etc.). The City also has a demonstrated history of working
with Electricraft, a key subconsultant on the Cushman team and an electrical contractor that is
very experienced with the City’s WTP.
Transfer Pump Station. The existing Transfer Pump Station (TPS) is located near the WTP at
the south end of Stenner Creek Road. The TPS facility houses four-75 hp pumps that pump
treated water from the WTP Clearwells to Reservoir 2 which provides water to the City’s high-
pressure distribution system. The Project includes the addition of variable frequency drives
(VFDs) to each of the four existing transfer pumps and improved pump sequencing, the
combination of which is expected to improve overall system efficiency.
Benefits include the ability to slowly ramp up each pump when they are brought online to
eliminate pressure spikes, potentially harmful to the water distribution system, and the ability to
continually modulate the pump speed to meet varied demands of the system. Another component
to manage the operational costs of the TPS is to integrate level sensing at Clearwell #1 and pump
sequencing to minimize the energy consumption related to serving Reservoir 2. This would
include the strategic operation of pumps based on energy usage, energy rates, and tank levels.
Plant Service Water System (PSWS). The Plant Service Water System provides treated water
to processes in the WTP including cooling water for equipment, plant water, irrigation, fire
hydrants, and the WTP fire suppression system. The Project includes the removal and disposal of
the existing booster pump system and control panel, furnishing, installing, start-up and
commissioning of the new booster pump system and diaphragm tank, and provision of temporary
booster pump service for the PSWS during demolition of the existing system and installation of
the new system.
SCADA System/Controls. The WTP existing SCADA system is utilized by the City’s staff to
monitor and control key equipment and processes at the WTP. This system is equipped with ten
controllers of varying age (1994–2008). The existing controllers are an aging platform with
limited availability of spare parts and service providers which is accompanied with rising
maintenance costs. The project proposes replacement of eight of the ten existing controllers to
provide a robust SCADA system that utilizes a centralized communication and control protocol
and will provide the City the ability to monitor the potable water system (treatment and
distribution) and optimize operation as a connected system. The proposed system will also
provide critical process information of connected systems to evaluate and improve process
operations and efficiency.
Staff is proposing a budget of $185,000 for integration services, software, and hardware as part
of the WTP SCADA upgrade. New software is recommended by the City’s Information
Technology staff, as the City’s existing human-interface software has not kept up with the
functionality of other platforms. It is timely to conduct this software upgrade with the
replacement of the WTP SCADA system.
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Resiliency Phase
To assist the City with moving toward an energy neutral WTP, as well as contribute to the City’s
sustainability goals and advancement toward Zero Net Energy, the Project looked for
opportunities to generate energy on-site from renewable sources. These measures could offset
100 percent of the WTP’s GHG emissions from electricity use. With budgetary constraints and
capital priorities, staff is proposing to move forward with two components of the overall
Resiliency Phase, the WTP Generator and ground lease. Staff will return to Council with other
Resiliency Phase measures, such as the proposed hydroelectric generation facility and on-site
solar generation, in the future when a funding approach is identified including the potential for
grant funding.
WTP Generator. To prepare for Public Safety Power
Shutoff (PSPS) events, on August 20, 2019, the City
Council authorized the use of up to $2 million
including design, equipment acquisition, construction
costs and contingencies from Water Fund, Unreserved
Working Capital to fund the Water Fund portion of the
Emergency Power Supply needs. To date, the City has
expended approximately $500,000 toward generator
rentals, procurement of two portable generators, and
installation of a temporary transfer switch to enable the
connection of a backup generator, and other
components that enable a future permanent connection
at the WTP.
In early November, the City Manager approved a Change Order with PG&E and an extension of
the August 2018 Work Order until February 28, 2020. This Work Order also included the design
of the WTP permanent generator as part of this Project. A portion of the remaining funding
approved on August 20, 2019 is proposed to be used for the procurement and installation of a
permanent transfer switch and generator to power the WTP.
The IGA had looked at providing limited backup power at the WTP’s Transfer Pump Station.
However, due to the potential for PSPS events, staff identified the need for broader backup
power for all WTP treatment processes.
Ground Lease Agreement. City and Cal Poly staff prepared a draft, no-cost, 50-year ground
lease for approximately one half-acre, undeveloped land owned by the State of California (Cal
Poly) located near the entrance to the WTP on Stenner Creek Road. Staff recommends the City
Council approve the attached Resolution authorizing the City Manager to execute the Ground
Lease Agreement (Attachment D). The area is proposed for construction staging and will be
considered for future on-site solar installation during the Project’s Resiliency Phase.
Project Financing Strategy
The 2019-21 Financial Plan identified a budget of $14.3 million for the Project; other
components are described in Table 2. Staff is requesting using the remaining $1,700,000 budget
from the Emergency Power Supply for this project. The Work Order with PG&E will cost
Temporary Water Treatment Plant
Generator.
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$13,999,644 and is proposed to be debt financed. Staff is anticipating future savings in
operational and energy costs that will be accounted for in future budget planning.
On May 21, 2019, the City Council approved Resolution 11011 authorizing the Utilities Director
to enter into a financing agreement with the Infrastructure Bank (IBank). IBank offers a 20-year
loan at 3.21 percent where the annual debt service is projected to be approximately $980,000 per
year with payments starting in 2020.
As private financing may offer more favorable terms for the Project (US Bancorp has offered the
City 2.75 percent for a 15-year term), staff is still exploring various alternatives with its financial
advisors at this time. Staff recommends Council approve a Resolution (Attachment C)
authorizing the Director of Finance and/or the Utilities Director to execute and deliver any and
all certificates, contracts and other documents that would be necessary or appropriate to finance
the Project.
Staff is requesting use of Water Fund Unreserved Working Capital to ensure the City has
adequate cash flow for the Project. After the City approves a pay estimate, it is obligated to make
the payment within 30 days. While the City has a plan for project financing, it may tak e up to 90
days after the City requests reimbursement to receive funds. Utilizing Water Fund Unreserved
Working Capital will allow the City to pay the contractor while it waits for reimbursement and
keep the Project moving. There is approximately $18 million (unaudited financials) in
Unreserved Working Capital in the Water Fund to manage Project cashflow.
Table 2: Project Budget
Water Energy Efficiency Project
(Specification No. 91566)
PG&E Contract/Work Order $13,999,644
SCADA Integration Services, Hardware, and Software $185,000
WTP Generator (2020 Rental and Permanent) $1,700,000
Project Total 15,984,644
Available Balance from Emergency Power Supply $1,700,000
I-Bank or Alternate Financing $14,300,000
Total Project Budget $16,000,000
Previous Council Actions
On April 4, 2018, the City Council adopted Resolution 10878 approving the continued
participation in the SST program and authorized the City Manager to enter into a service
agreement, for the Project pursuant to Government Code section 4217.10 et seq. On August 18,
2018, the City Manager executed a Work Order with PG&E to complete the Investment Grade
Audit for an amount not to exceed $860,000.
On May 21, 2019, the City Council approved Resolution 11011 authorizing the Utilities Director
to enter into a financing agreement with the Infrastructure Bank (IBank).
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On August 20, 2019, the City Council authorized the use of up to $2 million including design,
equipment acquisition, construction costs and contingencies from Water Fund, Unreserved
Working Capital to fund the Water Fund portion of the Emergency Power Supply needs.
Policy Context
Policies that support the City’s participation in the SST Program include the Major City Goal on
Climate Action, the Climate Action Plan, and the Conservation and Open Space Element of the
City’s General Plan.
Public Outreach
Climate action is a Major City Goal for the financial planning period (2019 -21), with attention to
reducing the City’s carbon footprint in City operations. The Water Energy Efficiency Project
focuses on the City’s Water Treatment Plant operations to reduce energy consumption and
optimize the control of energy-consuming systems.
CONCURRENCES
The Finance Department concurs with the funding approach recommended in this report. The
Public Works Department concurs with the recommendation to implement the Project.
ENVIRONMENTAL REVIEW
The City has determined the Project is categorically exempt from the California Environmental
Quality Act pursuant to CEQA Guidelines section 15301, Class 1 – Existing Facilities and
15328, Class 28 - Small Hydroelectric Projects at Existing Facilities (Attachment F). The
exemption was filed with the State Clearinghouse on January 24, 2019.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost Annualized
On-going Cost Total Project Cost
General Fund
State
Federal
Fees
Other: Water Fund $16,000,000 0 $16,038,770
Total $16,000,000 0 $16,038,770
Staff anticipates an overall reduction in ongoing annual maintenance costs with the new ozone
system and other equipment included in the Project. These annual maintenance costs are part of
the WTP operating budget projected in the Water Fund.
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ALTERNATIVES
Do Not Authorize Execution of the Work Order with PG&E (Attachment B). Council
should only select this alternative if it feels this public/private partnership with PG&E will not
provide a quality, cost effective project and is not in the best interest of the community.
Attachments:
a - COUNCIL READING FILE - Investment Grade Audit Report
b - PGE Implementation Work Order with City of SLO
c - Resolution Authorizing Use Water Fund Unreserved Working Capital
d - Ground Lease Between Cal Poly and City for WTP
e - COUNCIL READING FILE - Resolution 10878
f - Water Energy Efficiency Project_Notice of Exemption
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CITY OF SAN LUIS OBISPO WATER TREATMENT PLANT SUSTAINABLE SERVICES TURNKEY
IMPLEMENTATION PROJECT
WORK ORDER
This WORK ORDER (“Work Order”), effective as of the date of the latest signature executing this
agreement (“Work Order Effective Date”) is made and entered into by and between City of San Luis Obispo
(“Customer”) and Pacific Gas and Electric Company (“PG&E”). This Work Order is subject to the terms and
conditions of the PG&E Master Services Agreement, Contract # 21007 between Customer and PG&E dated
09/18/2018 (“Services Agreement”). Customer and PG&E are referred to collectively as the “Parties.”
In accordance with the provisions of the Services Agreement, the Customer wishes to engage PG&E to
provide the Implementation Work on the following Project:
PROJECT NAME: San Luis Obispo SST Water Treatment Plant Upgrades
CONTRACT No.: 21007
WORK ORDER AMOUNT $13,999,644
1. SCOPE OF WORK
1.1 PG&E will procure equipment for, construct, implement and deliver to Customer those
measures described in the Scope of Work (“SOW”) at Customer’s Water Treatment Plant, located at 1900
Stenner Creek Road, San Luis Obispo, CA 93405 facility described in the SOW (each facility a “Site” and
collectively the “Sites”). The SOW is attached hereto as Exhibit A and incorporated by reference herein.
The services to be performed under this Work Order shall be referred to hereinafter as the
“Implementation Work”.
PG&E shall have no obligations to perform any Implementation Work under this Work Order
unless and until PG&E and Customer have signed this Work Order. The issuance of this Work Order does
not commit PG&E to perform any future work for Customer.
1.2 Subcontractors. PG&E reserves the right to engage third party subcontractors
(“Subcontractors”) to perform some or a portion of the Implementation Work. PG&E agrees that, as
between PG&E and Customer, PG&E shall be solely responsible for the Subcontractors performance of
the Implementation Work under this Work Order. In addition, unless otherwise set forth in this Work
Order, the fees and costs billed to Customer shall be inclusive of any, and all, fees and compensation due
to any Subcontractors. PG&E shall be responsible for the payment of any compensation, monies, wages
or other payment due or allegedly due Subcontractors, including prevailing wages. For purposes of this
Agreement, PG&E and its Subcontractors shall be collectively referred to as “PG&E”.
1.3 Term of Work Order. This Work Order shall commence upon the Work Order Effective
Date and shall continue until all the Implementation Work is complete; unless sooner terminated or
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extended as permitted under the Services Agreement (the “Work Order Term”). PG&E shall complete the
Implementation Work in accordance with the milestone dates described in the project schedule attached
hereto as Exhibit B and incorporated by reference herein.
2. PERFORMANCE OF THE IMPLEMENTATION WORK
2.1 Project Construction
2.1.1 PG&E’s Responsibilities.
2.1.1.1. Upon execution of this Work Order by Customer and approval of project
financing, PG&E shall commence and complete construction and implementation of the Project in
accordance with the Services Agreement, this Work Order, the attached SOW and any applicable Work
Order modifications. PG&E will provide all professional and other services, labor, materials, equipment,
tools, transportation and other services necessary for the proper performance and completion of the
Implementation Work per the City stamped plans and specifications approved for construction, and in
accordance with Customer applicable codes, regulations, and the 2018 Standard Specifications and
Engineering Standards. PG&E will be responsible for the means, methods, techniques, sequences and
procedures to implement the Project, and shall oversee Project construction including construction
management, and inspection testing per the plans and specifications approved for construction.
2.1.1.2. PG&E will use commercially reasonable efforts to minimize disruption to
Customer’s use and operations at the Site. PG&E will provide at least ten (10) calendar days written notice
to Customer of any planned power or other utilities outages that will be necessary for the Implementation
Work. Customer will cooperate with PG&E in scheduling such outages, and Customer agrees to provide
its reasonable approval of any scheduled outage.
2.1.1.3. Customer has first rights to all equipment being removed during demolition.
PG&E will coordinate with Customer to identify all items to be turned over to Customer prior to start of
demolition. At least five (5) days prior to commencement of demolition, Customer shall provide to PG&E
a written list of all equipment to be returned to Customer prior to completion of demolition. PG&E will
provide legal offsite disposal for all items not returned to the Customer. Customer is responsible for all
labor, equipment, rigging and transportation necessary to remove demolished items from the jobsite and
transport them to their final location.
2.1.2 Customer's Responsibilities.
2.1.2.1. Customer will take reasonable measures to provide PG&E, its personnel and
Subcontractors with site access, suitable office space and other reasonable accommodations and facilities
necessary to permit PG&E personnel and its Subcontractors to perform the Implementation Work on this
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Project. While working on the Site, if requested by Customer, the PG&E Project team personnel will be in
an area adjacent to Customer's subject matter experts and technical personnel, and all necessary security
badges and clearance will be provided for access to this area, all in accordance with Customer’s vendor
policies. Additionally, upon request Customer will provide to PG&E and its Subcontractors relevant site
information or documents necessary to perform the Implementation Work, including but not limited to a
copy of this Work Order, all Work Order modifications, the Services Agreement, a copy of relevant
drawings, specifications, operation and maintenance manuals for equipment at the Site, and other
pertinent documents.
2.1.2.2. Customer will arrange for a temporary staging area for the storage and assembly
of equipment for completion of the Implementation Work, if needed.
2.1.2.3. Customer will coordinate the Implementation Work to be performed by PG&E
with the Customer’s operations and other activities and with any other construction project that is
ongoing at or around the Site.
2.2 Training and Commissioning Services. PG&E shall provide training to Customer on
equipment that PG&E installs in accordance with the terms of this Work Order, and as described in the
SOW. PG&E shall perform start up, testing, and commissioning services in accordance with the equipment
manufacturers’ startup and commissioning recommendations and the Project Schedule. Customer
reserves the right to contract a third-party inspection company to spot-check the work performed by
PG&E under this agreement at any time during the construction phase.
2.3 Certificate of Substantial Completion. Promptly upon substantial completion of each
Project measure, PG&E will submit a Certificate of Substantial Completion to Customer for such measure.
Upon receipt of such certificate, Customer may inspect the Implementation Work and meet with PG&E’s
Project Manager to determine if the Project measure has achieved substantial completion. Customer
shall, within ten (10) business days of receipt of the Certificate of Substantial Completion, inform PG&E if
Customer agrees that the Project measure has achieved substantial completion. If Customer disagrees
that the Project measure has achieved substantial completion, Customer will specify in detail and in
writing the deficiencies requiring correction in order to achieve substantial completion. When substantial
completion has been achieved, Customer will file a Notice of Completion (NOC) with the County
Recorder’s Office, and return the NOC with a Certificate of Substantial Completion to PG&E stating that:
(i) the Project measure has achieved substantial completion and the date on which it did so, and (ii) that
on and after that date Customer will assume responsibility for the Project measure’s operation,
maintenance and repair, for damage to or destruction of the Project measure, and for the Project
measure’s security and insurance coverage. Title to the Project measure materials and equipment
installed pursuant to this Work Order shall pass to Customer on the date of substantial completion
together with equipment warranties.
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2.4 Close-Out Documentation. Within thirty (30) days after each Certificate of Substantial
Completion has been executed by Customer and received by PG&E, PG&E shall provide Customer with
(a) any applicable governmental approvals, permits, and sign-offs, (b) all equipment specifications and
ratings, (c) any applicable test data and reports, (d) CAD drawings and PDFs of final as-built and shop
drawings, (e) operating instructions, operations and maintenance manuals and schedules, recommended
spare parts lists, and all other written information relating to the Project measure, and (f) equipment
warranties.
2.5 Final Completion. Promptly after PG&E reasonably believes that Final Completion has
occurred, PG&E shall issue to Customer a Notice of Final Completion (defined below in Section 2.5.1).
Thereafter, Customer shall, within fourteen (14) business days, deliver its acknowledgment that Final
Completion has been achieved. The date of Final Completion shall be the date of Customer’s written
acceptance of PG&E’s Notice of Final Completion. Customer’s failure to respond within the thirty (30) day
notice period shall be deemed acceptance that Final Completion has occurred.
2.5.1 For purposes of this Work Order, the term “Final Completion” means the date
when all of the following have been accomplished: (a) each Project measure has achieved Substantial
Completion, (b) all “punch list” items have been completed, (c) all Close-out documentation has been
delivered to Customer, (d) PG&E has delivered to Customer: (i) a release of all lien rights, (ii) certification
that all claims for payment for labor and equipment for which PG&E is responsible have been paid or
satisfied, (iii) copies of waivers/releases of lien rights by Subcontractors that have furnished more than
twenty-five thousand dollars ($25,000) of goods, services or both for the Project, (iv) notice of all
outstanding claims of PG&E, any Subcontractor or equipment or materials supplier or distributor that may
affect Customer, PG&E or the Project, (v) a letter of indemnification regarding claims not addressed by
waivers/releases, and (vi) removal of all of PG&E and Subcontractors’ personnel, supplies, equipment,
waste materials, rubbish, and temporary facilities from the Site.
2.6 PG&E shall not be liable for any claims, liabilities, or losses arising out of, resulting from,
or in any way connected with, Customer’s: (a) neglect, misuse or abuse of the equipment; (b) use of
unauthorized parts, or removal of any parts; (c) repair, modification or alteration of equipment by anyone
other than authorized representatives as described in the warranties covering the equipment;
(d) relocation of the equipment.
3. MODIFICATIONS
If a modification to this Work Order is necessary, the Parties agree to follow the modification
process set forth in Section 4.2. of the Services Agreement.
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4. PAYMENT
4.1 PG&E will submit invoices, certified payrolls (redacted and unredacted), and daily
inspection reports on a monthly basis to Customer based upon the agreed-upon Bid Schedule, which is
attached hereto as Exhibit C and incorporated by reference herein. Prior to the first application for
payment a baseline schedule, and schedule of values detailing labor, equipment, and materials shall be
approved by the City. A 5% retention will be applied to the monthly progress payment in accordance with
Public Contract Code Section 22300 and Customer’s 2018 Engineering Standards and Specifications. Final
release of the payment retention shall be conducted in accordance with the City requirements as specified
in the 2018 Engineering Standards and Specifications. Proof of insurance, performance bonds, and
payment bonds shall be executed and submitted to Customer within 10 working days after Notice of
Award (NOA). A Notice to Proceed (NTP) will be issued after all bonds and insurance documents have been
approved by Customer.
4.2 Each PG&E invoice will reference this Work Order and be submitted to Customer’s billing
address. Customer shall instruct its financial institution or Project financier to render all payments to
PG&E within thirty (30) days from the invoice date and when Customer has received a complete
application for payment per Section 4.1. Each payment made by Customer or its third-party designee
must reference this Work Order and invoice number and be mailed to:
PACIFIC GAS AND ELECTRIC COMPANY
Attn: Sales and Service Manager, Business Development
P.O. Box 770000, Mail code: N10D
San Francisco, CA 94177
5. ORDER OF PRECEDENCE
In the event of a conflict between the provisions of the Work Order, any modification to the Work
Order, and the Services Agreement, the following order of precedence shall apply (in descending order):
(a) the modification to this Work Order, (b) the Work Order, and (c) the Services Agreement.
6. NOTIFICATIONS AND INTERFACE
Both Parties shall contact and/or deliver written notices (email is allowed) to the business contacts below
in the normal course of business, and in the event of any problems which may significantly affect the
performance of the Implementation Work under this Work Order.
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BUSINESS CONTACTS
CUSTOMER REPRESENTATIVE PG&E REPRESENTATIVE
Name Name Brent Patera
Title Title Business Development Manager
Address Address 245 Market Street, Mail Code N10D
San Francisco, CA 94105
Telephone Telephone 415-973-5335
Email Email Brent.Patera@PGE.com
7. AUTHORITY
Each Party represents and warrants that the individual signing below, as well as any Work Order
Modifications and approvals hereunder, has and shall have all requisite power and legal authority to bind
the Party on whose behalf he/she is signing to that Party’s obligations hereunder.
IN WITNESS THEREOF, the parties agree to be bound by this Work Order as of the date first set forth
above.
CITY OF SAN LUIS OBISPO PACIFIC GAS AND ELECTRIC COMPANY
Signature: Signature:
Print Name: Print
Name:
Title: Title:
Date: Date:
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EXHIBIT A
SCOPE OF WORK
Scope of Work Overview
PG&E will implement energy conservation measures (“ECMs”) at the Customer’s Water Treatment Plant
(“WTP”). The ECMs are described generally below, and more specifically in the Investment Grade Audit
Report, dated 10/18/19 (“IGA Report”). The IGA Report is attached hereto as Attachment 1 and is
incorporated herein. The Scope of Work (“SOW”) to be included in the Work order as outlined in the IGA
includes:
ECM # ECM Name
2 Ozone System Upgrade
4 Transfer Pump Station Upgrades
9 Plant Service Water System Upgrades
11 SCADA /Controls Upgrades
ECM # 2 –Ozone System Upgrade
The focus of this measure is the removal and replacement of the existing ozone water treatment system
with a new system that offers improved reliability, functionality and uses less energy to operate when
compared to the existing system.
The SOW includes the removal and proper disposal of the existing ozone system in its entirety with a new
turnkey system which will include all components necessary for a complete functioning system. The new
ozone generators will be a modular design system by Primozone, a Pureflow Ozone Division. The new
generators will be fed by new LOx storage and delivery systems. As this is a replacement of a critical
system in an operating plant, careful consideration was given to the planned approach. It is understood
that the WTP must always remain in operation during construction. The construction shall be
accomplished in four phases: Phase 1 Demolition; Phase 2 Construction, Phase 3 Demolition; and Phase 4
Construction. Ozone generators #1 and #2 and destruct Unit #2 shall remain fully operable during Phase
1 until the new system is online and accepted by the owner.
For the construction phase, a written schedule outlining the proposed phasing and sequence of the work
will be developed by PG&E and the Customer to ensure that the WTP remains in operation during the
duration of the construction.
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ECM # 4 – Transfer Pump Station Upgrades
This measure includes the addition of Variable Frequency Drives (“VFDs”) to each of the four existing
transfer pumps. The VFDs will improve overall system efficiency and controllability by providing Customer
with the ability to slowly ramp up each pump when the transfer pumps are brought online. Consequently,
Customer will more easily be able to eliminate pressure spikes, and will have the ability to continually
modulate the pump speed to meet varied demands of the high-pressure system.
This ECM will include the following SOW:
• Install a wall-mounted Allen Bradley VFDs for each of the four existing transfer pumps and
integrate the VFDs into the Supervisory Control and Data Acquisition (“SCADA”) system. Each VFD
will be configured with a bypass, disconnect switch, line reactor and communication interface
compatible with Allen Bradley CompactLogix controllers.
• Modify the existing hardwired controls for the transfer pumps and their discharge valves to
function with the new VFDs.
• Integrate the existing tank level sensor at the Bishop Storage tank to monitor the high-pressure
system.
• Add sequence of operation in the SCADA system to allow for automatic operation of the Transfer
pumps to directly serve the high-pressure system when Reservoir-2 is out-of-service or
disconnected from the system.
• Add programming to the Throttle Position Sensor (“TPS”) control system with logic to optimize
the operation of the pumps when serving Reservoir-2 based on Clearwell Levels, Reservoir-2 levels
and Time-of-Use (“TOU”) electric rates.
ECM # 9 – Plant Service Water System Upgrades
This ECM will include the following SOW:
This measure includes the replacement of the existing booster pump system (“BPS”) with a new packaged
system that is sized for the flow rates that will occur after PG&E completes ECM 2 by replacing the ozone
system. The new BPS will utilize variable speed pumps to efficiently maintain the required system
discharge pressure. The BPS system will include a pressurized diaphragm tank that discharges water to
the plant service water system when the pumps shut off during low-demand conditions. The proposed
BPS is manufactured by Grundfos. The factory-assembled system includes three variable speed,
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multistage vertical inline pumps with integrated motor/VFD rated for 80 GPM each, suction and discharge
piping, and a control panel.
The SOW includes:
• Removal and disposal of the existing BPS and control panel.
• Furnishing, installing, start-up and commissioning the new BPS and diaphragm tank.
• Provision of temporary BPS for the PSWS during demolition of the existing system and
installation of the new system.
ECM # 11 – SCADA/Controls Upgrades
The objective of this measure is to improve the existing WTP SCADA system by upgrading the existing
controllers to a platform that is compatible with the recently-installed system on the water distribution
system.
This measure includes the replacement of the existing Bristol Babcock controllers with CompactLogix
and/or ControlLogix Programmable Logic Controllers (“PLCs”) by Allen-Bradley. Compact Logix and
Control Logix represent small and large PLCs from the same family of controllers. Compact Logix and
Control Logix PLCs are fully compatible with each other and use the same programming software. The
system replacements/upgrades are described below.
• At the Ozone building CSP-1 and CSP-7:
o PG&E will remove the existing controllers and infrastructure. One new integrated Ozone
controller will be provided and installed in conjunction with the Ozone system upgrade
described in ECM 2. This new controller will be provided with the following:
▪ Provide a new cabinet and custom back panel
▪ The new integrated Ozone controller will be an Allen Bradley PLC
▪ Add a new power supply and uninterruptable power supply
▪ Provide new Ethernet switch
▪ Provide new terminal blocks, Relays, Fuses as required
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• At the Ozone contact basin CSP-2:
o PG&E will remove this existing controller and associated wiring as it will no longer be
needed for the new Ozone system upgrade installed as part of ECM 2
• At the Filter Building CSP–3 and CSP-4:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
• At the Chemical Building CSP-5:
o Replace with new PLC in the existing cabinet and location
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
• At the Plant Water Service Pump Station CSP-6:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, Relays, Fuses as required
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• At the TPS CSP-8:
o Provide a new custom back panel for installation in the existing PLC cabinet
o Replace existing controllers with a new Allen Bradley PLC
o Add a new power supply and uninterruptable power supply
o Provide new Ethernet switch
o Provide new terminal blocks, relays, and fuses as required
• Reprogramming Services. PG&E will reprogram the upgraded PLCs listed above with existing
sequences, alarms and trending
• Portable computer tablets. PG&E will provide two (2) portable computer tablets (Apple iPad or
equal) with Graphic interface software to optimize operator interface
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EXHIBIT B
ESTIMATED PROJECT SCHEDULE
Below is the estimated project schedule. PG&E will submit a detailed schedule following the kick-off
meeting.
Duration Assumed Start Assumed Finish
Preconstruction 241 days 12/02/19 11/02/20
Receive NTP 1 day 12/02/19 12/02/19
Bond and Insurance 5 days 12/01/19 12/16/19
Write Subcontracts 5 days 12/17/19 12/23/19
Cushman Precon 190 days 12/24/19 09/14/20
Design Drawings 4 months 12/24/19 04/13/20
Submittal Review Process Ozone
Equipment
8 weeks 12/24/19 02/17/20
Submittal Review Process Concrete
Rebar Pip
8 weeks 12/24/19 02/17/20
Submittal Review Process Electrical and
Pumps
8 weeks 04/14/20 06/08/20
Release electrical 1 day 06/09/20 06/09/20
Release ozone equipment 1 day 02/18/20 02/18/20
Ozone equipment lead time 14 weeks 02/18/20 05/25/20
Procure miscellaneous material 4 weeks 02/19/20 03/17/20
Procure electrical and pumps 14 weeks 06/09/20 09/14/20
SCADA Precon 225 days 12/24/19 11/02/20
Engineering and Submittals 180 days 12/24/19 08/31/20
Materials Procurement 45 days 09/01/20 11/02/20
Hazmat layout and testing 6 days 04/14/20 04/21/20
Permits 5 days 04/14/20 04/20/20
Construction 305 days 03/18/20 05/18/21
Ozone 275 days 03/18/20 04/06/21
Mobilize CCC 5 days Wed 3/18/20 Tue 3/24/20
LOX Excavate for Tank pad and LOX
receiving 4 weeks Wed 3/25/20 Tue 4/21/20
LOX Form pour Strip LOX tank pad
and LOX receiving 6 weeks Wed 4/22/20 Tue 6/2/20
LOX excavate Lay Backfill LOX Yard
Pipe 4 weeks Wed 6/3/20 Tue 6/30/20
LOX set and connect LOX tank and
Evaporators 1 weeks. Wed 7/1/20 Tue 7/7/20
Phase 1 Ozone Demo 7 weeks Wed 4/22/20 Tue 6/9/20
Phase 1 Concrete 3 weeks Wed 6/10/20 Tue 6/30/20
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Phase 1 Equipment 4 weeks Wed 7/1/20 Tue 7/28/20
Phase 1 Mechanical 6 weeks Wed 7/29/20 Tue 9/8/20
Phase 1 Electrical 8 weeks Wed 8/26/20 Tue 10/20/20
Ozone Phase 1 Training 5 days Wed 10/21/20 Tue 10/27/20
Phase 1 Startup and Test 5 weeks Wed 10/21/20 Tue 11/24/20
Phase 2 Demo 4 weeks Wed 11/25/20 Tue 12/22/20
Phase 2 Concrete/Tile 2 weeks Wed 12/23/20 Tue 1/5/21
Phase 2 Mechanical 4 weeks Wed 1/6/21 Tue 2/2/21
Phase 2 Electrical 6 weeks Wed 1/20/21 Tue 3/2/21
Ozone Phase 2 Training 5 days Wed 3/3/21 Tue 3/9/21
Phase 2 Startup and Test 5 weeks Wed 3/3/21 Tue 4/6/21
Plant Service Water Upgrade 41 days Tue 9/15/20 Tue 11/10/20
Mobilize CCC 1 day Tue 9/15/20 Tue 9/15/20
Demo and set up bypass 2 weeks Wed 9/16/20 Tue 9/29/20
Install new pumps and mechanical 3 weeks Wed 9/30/20 Tue 10/20/20
Install new Electrical 1 week Wed 10/21/20 Tue 10/27/20
Training 5 days Wed 10/28/20 Tue 11/3/20
Startup and Test 1 week Wed 11/4/20 Tue 11/10/20
Transfer Pump Station Upgrades 26 days Wed 11/11/20 Wed 12/16/20
Mobilize CCC 1 day Wed 11/11/20 Wed 11/11/20
Install TPS VFD's 3 weeks Thu 11/12/20 Wed 12/2/20
Training 5 days Thu 12/3/20 Wed 12/9/20
Startup and Test 1 week Thu 12/10/20 Wed 12/16/20
SCADA Upgrades 218 days Mon 7/6/20 Wed 5/5/21
Mobilize TESCO 2 days Mon 7/6/20 Tue 7/7/20
Site Installation Work 150 days Wed 7/8/20 Tue 2/2/21
Training 5 days Wed 2/3/21 Tue 2/9/21
System Implementation and startup 61 days Wed 2/10/21 Wed 5/5/21
Closeout 30 days Wed 4/7/21 Tue 5/18/21
TOTALS 382 days 12/2/19 05/18/21
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EXHIBIT C
BID SCHEDULE
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ATTACHMENT 1
INVESTMENT GRADE AUDIT REPORT
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER FUND
UNRESERVED WORKING CAPITAL FOR THE WATER ENERGY
EFFICIENCY PROJECT
WHEREAS, on April 4, 2018, the City Council adopted Resolution 10878, reviewed the
Preliminary Energy Assessment for the Water Energy Efficiency Project (Project) and voted in
favor of proceeding to the Project’s Investment Grade Audit; and
WHEREAS, on May 21, 2019, the City Council approved Resolution 11011 authorizing
the Utilities Director to enter into a financing agreement with the Infrastructure Bank (IBank) to
debt finance the Project.
WHEREAS, in June 2019, the City Council approved 2019-21 Financial Plan, Capital
Improvement Program, identified a Project budget of $14,300,000; and
WHEREAS, On August 20, 2019, the City Council authorized the use of up to $2 million
including design, equipment acquisition, construction costs and contingencies from Water Fund,
Unreserved Working Capital to fund Emergency Power Supply needs and $1,700,000 is available
to contribute for funding the Project; and
WHEREAS, on November 1, 2019, the City Manager approved an extension and an
amendment to the Work Order to include design for a permanent Water Treatment Plant generator
in response to potential Public Safety Power Shutoff events; and
WHEREAS, the total available budget for the Efficiency Phase of the Project is
$16,000,000; and
WHEREAS, private financing (US Bancorp, and others) is also being considered for the
Project as it may offer the City more favorable financing terms; and
WHEREAS, a balance of approximately $18 million (unaudited financials) is available
from Water Fund, Unreserved Working Capital to fund the Efficiency Phase of the Project and
manage cashflow.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Director of Finance and/or the Utilities Director is authorized to execute
and deliver any and all certificates, contracts and other documents necessary or appropriate to
finance the Project.
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Resolution No. _____ (2019 Series) Page 2
R ______
SECTION 2. Environmental Review. Construction of this project is exempt from the
California Environmental Quality Act (CEQA) 15301, Class 1 – Existing Facilities and 15328,
Class 28 - Small Hydroelectric Projects at Existing Facilities. The Community Development
Department issued a Notice of Exemption on January 24, 2019.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ___________ day of ____________________, ___________.
____________________________________
Teresa Purrington
City Clerk
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GROUND LEASE
by and between
BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY
and
CITY OF SAN LUIS OBISPO
for
WATER TREATMENT PLANT HYDROGENERATION AND RENEWABLE ENERGY
FACILITY
SAN LUIS OBISPO, CALIFORNIA
Dated
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GROUND LEASE
(Board of Trustees of the California State University/City of San Luis Obispo)
Water Treatment Plant Hydrogeneration and Renewable Energy Facility
San Luis Obispo, California
THIS GROUND LEASE (“Lease”) is effective as of _____________, 2019 (“Effective
Date”), by and between the Board of Trustees of the California State University, on behalf of
California Polytechnic State University, San Luis Obispo (“University” or “Lessor”) and the City
of San Luis Obispo, a municipal corporation (“City” or “Lessee”):
RECITALS
A. Lessor is the owner of certain real property consisting of an approximately 0.5-acre
portion of the parcel identified as Assessor’s Parcel Number 073-271-001, legally described in
Exhibit A and depicted in Exhibit B, attached hereto and made a part hereof by this reference
(“Property”), located adjacent to the City’s Water Treatment Plant (“WTP”) on Stenner Creek
Road in San Luis Obispo, California, and proximate to the existing 12-inch Nacimiento Water
Project pipeline near the entrance to the WTP.
B. Lessee wishes to construct and operate a Hydrogeneration and Renewable Energy
Facility on the Property, including a turbine generating unit, photovoltaic arrays, and a backup
generator (“Project”), in order to increase system reliability, reduce ut ility costs, reduce the
consumption of fossil fuel based energy, and reduce greenhouse gas emissions, and Lessor wishes
to lease the Property to Lessee for such purposes, which will benefit as water used to serve the
University is treated at the City’s WTP.
NOW THEREFORE, in consideration of the foregoing recitals which are incorporated by
this reference and the covenants hereinafter contained, Lessor and Lessee agree as follows:
ARTICLE 1.
BASIC PROVISIONS
1.1 Description of Property. A legal description and map depiction of the Property are
hereto attached as Exhibit “A”. Lessee accepts the property in its current “as-is” condition without
any representations or warranties from Lessor as to its condition or suitability for the Project, or
any associated City use.
1.2 Lease and Grant of Use. Lessor does lease to Lessee and Lessee does hereby lease
from Lessor, upon the terms and conditions set forth herein, the Property described in Exhibit A
and depicted in Exhibit B (“Premises”).
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1.3 Notices:
LESSOR/UNIVERSITY:
Cal Poly
Strategic Business Services
1 Grand Avenue
Building 1 Room 128
San Luis Obispo, CA 93407
Attn: Dru Zachmeyer, Assistant Vice President, Strategic Business Services
Email: dzachmey@calpoly.edu
LESSEE/CITY:
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401-2710
Attn: Jennifer Metz, Utilities Project Manager
Email: jmetz@slocity.org
1.4 Exhibits. The following exhibits are attached hereto and incorporated herein by this
reference:
Exhibit A – Legal Description of Property
Exhibit B - Map Depicting Property
ARTICLE 2.
TERM
2.1 Term. Fifty (50) years commencing upon approval of this Lease by Lessee’s City
Council (the “Commencement Date”) and terminating at midnight on the day before the fiftieth
anniversary of the Commencement Date, subject to earlier termination as provided herein. The
phrase “Term of this Lease” or “the Term hereof” as used in this Lease, or words of similar import,
will refer to the initial term of this Lease together with any holdover or any option termed.
2.2 Holdover. If Lessee remains in possession of the Premises or any part thereof after
the expiration of the Term of this Lease, such occupancy will be a tenancy which is terminable
only upon 90 days written notice from Lessor or 30 days written notice from Lessee, and subject
to all of the terms, covenants and conditions of this Lease.
ARTICLE 3.
RENT
3.1 Rent. The use of the Property will be gratis during the initial term, any option term,
or holdover. Consideration for this Lease will be Lessor’s adherence to the terms and conditions
of the Lease.
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ARTICLE 4.
USE
4.1 Permitted Use. Lessee will utilize the Property only for the development,
construction, operation, and maintenance of the Project, including the installation, construction,
operation, maintenance, repair, replacement, relocation, and reconstruction of the Project
components and equipment and all fixtures or appurtenances incidental thereto (collectively,
“Permitted Uses”). Fixtures and appurtenances used or useful in the operation of the Project may
be constructed any distance either below or above the ground surface and may include security
fencing. The Permitted Uses further include the removal of the Project components, fixtures, and
appurtenances, and to remove objects interfering with the construction, operation and maintenance
thereof.
4.2 Compliance with Law. Lessee will, at Lessee’s sole cost and expense, comply with
all applicable statutes, laws, and regulations. Upon completion of construction, if any license,
permit, or other governmental authorization is required for the lawful use or occupancy of the
Property or any portion of the Property, Lessee will procure and maintain said authorization, at
Lessee’s sole cost and expense, throughout the Term of this Lease.
ARTICLE 5.
DISCRETIONARY PERMITS
5.1 Applications. During the term of this Lease, Lessor will, promptly upon Lessee’s
request, sign (as owner of the Property) and acknowledge any application to any governmental
entity having jurisdiction over the Property for any of the discretionary permits necessary for
construction and operation of the Project, provided that Lessor incurs no cost (other than the
administrative and consulting cost necessary for review). No such signing by Lessor will be
deemed to be Lessor’s commitment to satisfy, any condition (i) in or precedent to a discretionary
permit or (ii) adversely affecting Lessor’s interest in the Property.
ARTICLE 6.
EASEMENTS
6.1 Utility Easements. Lessor will execute (as owner of the Property), acknowledge
and deliver to Lessee for recording, any grant of easement (i) over, upon, across or under the
Property or any portion thereto (ii) in favor of any governmental subdivision or any gas, electric,
telephone or similar company and (iii) for the purpose of (a) widening any street, (b) transmitting
potable water, storm water, sewage, gas, electricity, telephone or other communication, or (c)
providing to the Property and the persons using and enjoying the Property such materials and
services as are, from time to time, customarily understood to be “utilities.”
ARTICLE 7.
PROJECT CONSTRUCTION
7.1 Construction Scope. Lessee will provide all services necessary to construct the
Project.
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7.2 Compliance with Laws. The Project will be constructed and all work on the
Property will be performed in accordance with all applicable laws, ordinances, and regulations of
all federal, state, county or local governmental agencies having jurisdiction over the Property, as
amended from time to time. All work performed on the Property under this Lease will be done in
a good and workmanlike manner.
7.3 Mechanics Liens. At all times during the term of this Lease, Lessee will make its
best efforts to keep the Property and the Project now or hereafter located on the Property free and
clear of all liens and claims of liens for labor, service, materials, supplies, or equipment performed
on or furnished to the Property.
7.4 Ownership of Project. During the term of this Lease, and for any extended term or
holdover period, and upon termination of this Lease, title to the Project and all components thereof,
including all associated equipment, fixtures, and appurtenances, will be vested in Lessee.
ARTICLE 8.
MAINTENANCE, REPAIR, DAMAGE AND DESTRUCTION
8.1 Maintenance. Except as otherwise provided herein, at all times during the term of
this Lease including any option term or holdover, Lessee will, at Lessee’s sole cost and expense,
keep and maintain the Property and the Project in good order and repair, and in a safe condition.
Lessor will have no obligation to alter, remodel, improve, or repair the Property or the Project.
8.2 Repair. At all times during the term of this Lease and for any extended term, Lessee
will, at Lessee’s own cost and expense, do all of the following:
8.2.1 Make all alterations, additions or repairs to the Property or the Project
required by any applicable law, ordinance, statute or regulation now or hereafter issued by any
federal, state, county, local, or other governmental agency, as amended from time to time; and
8.2.2 Observe and comply with all applicable laws, ordinances, statutes, orders
and regulations now or hereafter made respecting the Property or the Project by any federal, state,
county, local, or other governmental agency.
8.3 Damage or Destruction. In the event of damage to, or destruction of all or any
portion of the Project, Lessee will have the option to commence and proceed diligently to repair,
reconstruct, and restore (collectively, “restore”) the Project to substantially the same condition as
it existed immediately prior to the casualty, whether or not insurance proceeds are sufficient to
verify the actual cost of restoration. This Lease will continue in full force and effect
notwithstanding such damage or destruction; provided, however, that the Lessee may, at its option,
demolish the Project and terminate the Lease.
8.4 Utilities. At all times during the term of this Lease, Lessee will pay the expenses
of all utility services supplied to the Property, including but not limited to all electricity and gas
units, together with any taxes thereon.
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ARTICLE 9.
INDEMNIFICATION AND INSURANCE
During the term of this Agreement or as otherwise specified herein, the following
indemnification and insurance requirements will be in effect. Either party, at its sole option, may
elect to use a program of self-insurance, commercial insurance, or any combination thereof to
satisfy its insurance requirements herein.
9.1 Indemnification.
9.1.1 The Lessor will indemnify, defend, and hold harmless Lessee, its elected
and appointed officers, agents, and employees from and against any and all liability, loss, expense
(including reasonable attorney’s fees), or claims for injury or damages arising out of the
performance of this Lease, but only in proportion to and to the extent such liability, loss, expense,
attorney’s fees, or claims for injury or damages are caused by or result from the negligent or
intentional acts or omissions of Lessor, its trustees, officers, agents, employees, contractors, and/or
consultants.
9.1.2 The Lessee will indemnify, defend and hold harmless Lessor, its trustees,
officers, agents, and employees from and against any and all liability, loss, expense (including
reasonable attorney’s fees), or claims for injury or damages arising out of the performance of this
Lease, but only in proportion to and to the extent such liability, loss, expense, attorney’s fees, or
claims for injury or damages are caused by or result from the negligent or intenti onal acts or
omissions of Lessee, its trustees, officers, agents, employees, contractors, and/or consultants.
9.1.3 The indemnification provisions of this section will survive the expiration or
termination of this agreement.
9.2 General Insurance - Lessee Requirements. Without limiting Lessee’s
indemnification of Lessor and at its own expense, Lessee will provide and maintain the following
programs of insurance.
9.2.1 General Liability insurance (providing scope of coverage equivalent to ISO
policy form CG 00 01) with limits of not less than the following:
General Aggregate: $2 million
Each Occurrence: $1 million
Such insurance will name Lessor, its trustees, officers, employees, agents, and volunteers as
additional insureds.
9.2.2 Workers Compensation and Employers’ Liability insurance satisfying
statutory requirements, which includes Employers’ Liability coverage with limits of not less than
$1 million per accident.
9.2.3 Property insurance covering damage to Lessee-constructed improvements
from perils covered by the Causes-of-Loss Special Form (ISO form CP 10 30), written for the full
replacement cost of the property, and including a Waiver of Subrogation in favor of Lessor.
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9.2.4 Lessee Contractors. Throughout the period of any construction, Lessee will
require its Contractors to provide and maintain, or Lessee will provide and maintain, types and
limits of insurance coverage appropriate to the Project, at no cost to Lessor. All Contractor
insurance will be primary to and not contributing with any other insurance or self-insurance
programs maintained by Lessee or Lessor. Lessor and Lessee also will be named as additional
insureds under all Contractor general liability coverage.
9.3 General Insurance - Lessor Requirements. Without limiting Lessor’s
indemnification of Lessee and at its own expense, Lessor will provide and maintain the following
programs of insurance.
9.3.1 General Liability insurance (providing scope of coverage equivalent to ISO
policy form CG 00 01) with limits of not less than the following:
General Aggregate: $2 million
Each Occurrence: $1 million
Such insurance will name Lessee, its officers, employees, agents, and volunteers as additional
insureds.
9.3.2 Workers Compensation and Employers’ Liability insurance or qualified
self-insurance satisfying statutory requirements, which includes Employers’ Liability coverage
with limits of not less than $1 million per accident.
9.4 Review of Insurance Requirements. The types and limits of coverage required
under this Agreement may be reviewed annually by Lessor and Lessee. Coverage types and limits
will reflect the prevailing practice in the area for insuring similar property and casualty risks, and
be subject to the mutual agreement of the parties.
9.5 Self Insurance. Notwithstanding the provisions of this Article 11, either Lessor or
Lessee, at its sole option, may satisfy all or any part of the insurance requirement through the us e
of program of self-insurance. Certificate evidencing coverage or letter evidencing self-insurance
will be provided by the respective parties within sixty (60) days after the execution of this
agreement.
ARTICLE 10.
DEFAULT AND REMEDIES
10.1 Lessor’s Default. Lessor will not be in default of any of its obligations under this
Lease unless Lessor fails to perform such obligations within a reasonable time, but in no event less
than thirty (30) days after written notice by Lessee to Lessor specifying wherein Lessor has failed
to perform such obligations; provided however, that if the nature of Lessor’s default is such that
more than thirty (30) days are required for its cure, Lessor will not be in default if Lessor
commences such cure within such thirty (30) day period and thereafter diligently prosecutes the
same to completion.
10.2 Lessee’s Remedies. In the event of any default by Lessor as described in Section
10.1 above, subject to all applicable laws that may restrict remedies against a California State
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University, Lessee’s remedies under this Lease are to pursue Lessor for specific performance
and/or actual damages, resulting from Lessee’s default. Lessee will have no rights as a result of
any default by Lessor until Lessee gives thirty (30) days’ notice to Lessor, specifying the nature
of the default. Lessor will then have the right to cure such default, and Lessor will not be deemed
in default if Lessor cures such default within thirty (30) days after receipt of notice of the default,
or within such longer period of time as may reasonably be necessary to cure the default, provided
that Lessor commences such cure within such thirty (30) days.
10.3 Lessee’s Default. Lessee will not be in default of any of its obligations under this
Lease unless Lessee fails to perform such obligations within a reasonable time, but in no event less
than thirty (30) days after written notice by Lessor to Lessee specifying wherein Lessee has failed
to perform such obligations; provided however, that if the nature of Lessee’s default is such that
more than thirty (30) days are required for its cure, Lessee will not be in default if Lessee
commences such cure within such thirty (30) day period and thereafter diligently prosecutes the
same to completion.
10.4 Lessor Remedies. In the event of any default by Lessee as described in Section
10.3 above, subject to all applicable laws that may restrict remedies against a city, including, but
not limited to, restrictions within the California Government Code, Lessor’s remedies under this
Lease are to pursue Lessee for specific performance and/or actual damages resulting from Lessee’s
default. Lessor will have no rights as a result of any default by Lessee until Lessor gives thirty
(30) days’ notice to Lessee, specifying the nature of the default. Lessee will then have the right to
cure such default, and Lessee will not be deemed in default if Lessee cures such default within
thirty (30) days after receipt of notice of the default, or within such longer period of time as may
reasonably be necessary to cure the default, provided that Lessee commences such cure within
such thirty (30) days and thereafter diligently prosecutes the same to completion.
ARTICLE 11.
HAZARDOUS MATERIALS
11.1 Compliance. During the term of this Lease, Lessee, at its sole cost, will comply
with all applicable laws, statutes, ordinances, codes regulations and orders relating to the receiving,
handling, use, storage, transportation, discharge, release, and disposal of Hazardous Material (as
defined below) in or about the Property or the Project. Lessee will not cause or permit any
Hazardous Material to be brought upon, kept, or used in or about the Property or the Project by
Lessee or Lessee’s agents in a manner or for a purpose prohibited by any federal, state, or local
agency or authority.
11.2 Notice. Lessee will immediately provide Lessor with telephonic notice, which will
promptly be confirmed by written notice, of any and all spillage, discharge, release, and disposal
of Hazardous Material onto or within the Property or the Project, including the soils and subsurface
waters thereof, where the spillage, discharge, release, or disposal by law must be reported to any
federal, state, or local agency, and will also report to Lessor any injuries or damages resulting
directly or indirectly therefrom.
11.3 Definition of Hazardous Material. As used herein, “Hazardous Materials” means
any chemical, substance, material, controlled substance, object, condition, waste, living organism,
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or combination thereof, whether solid, semi solid, liquid, or gaseous, which is or may be hazardous
to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity,
reactivity, explosivity, toxicity, carcinogenicity, mutagenicity, phytotoxicity, infectiousness, or
other harmful or potentially harmful properties or effects, including, without limitation, molds,
toxic levels of bacteria, petroleum and petroleum products, asbestos, radon, polychlorinated
biphenyls (PCBs), refrigerants (including those substances defined in the Environmental
Protection Agency’s “Refrigerant Recycling Rule,” as amended from time to time), and all of those
chemicals, substances, materials, controlled substances, objects, conditions, wastes, living
organisms or combinations thereof which are now or become in the future listed, defined or
regulated in any manner by any Environmental Law based upon, directly or indirectly, such
properties or effects. As used herein, “Environmental Laws” means any and all federal, state, or
local environmental, health and/or safety-related laws, regulations, standards, decisions of courts,
ordinances, rules, codes, orders, decrees, directives, guidelines, permits or permit conditions,
currently existing and as amended, enacted, issued or adopted in the future which are or become
applicable to Lessor, the Project, or the Property.
ARTICLE 12.
OPTION TO EXTEND
12.1 Option to Extend. On or prior to the date which is twelve (12) months before the
expiration of the initial fifty (50) year term hereof, provided Lessee will not then be in material
default (as defined herein) under the provisions of this Agreement, Lessee may notify Lessor of
its request to exercise the Option to extend this Lease for up to three additional ten (10) year terms,
each additional ten-year term being referenced herein as an “Extension Term,” by providing
written notice to Lessor (“Option”). If Lessee fails to exercise its Option as provided for herein,
this Lease will expire upon the 50th anniversary of the commencement date or upon the expiration
of the exercised Extension Term, whichever is later, unless otherwise agreed by the parties. Upon
receipt of a notice to exercise the Option, Lessor will extend the Term Expiration Date for the
period of the Extension Term upon the same terms and conditions of this Lease.
ARTICLE 13.
QUIET ENJOYMENT AND RIGHT OF ENTRY
13.1 Quiet Enjoyment. Lessor covenants and agrees that it will not take any action to
prevent Lessee’s quiet enjoyment of the Property during the Term of this Lease.
13.2 Right of Entry. Lessor reserves the right for any of its duly authorized
representatives to enter the Property upon prior notice at any reasonable time for any reasonable
actions, including but not limited to (i) inspecting the Property and (ii) posting in such places as
Lessor may select notices of non-responsibility for works of construction, repair or improvement
made by Lessee. In doing so, Lessor will not interfere with Lessee’s enjoyment and use of the
Property and Project except in case of emergency improvements. Lessor acknowledges that the
Project will include security fencing and that entry onto the Property will require coordination with
Lessee.
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ARTICLE 14.
PROPERTY RECORDS
14.1 Property Records. Within thirty (30) days of the Effective Date of this Lease,
Lessor will provide to the Lessee copies of all non-privileged or non-confidential books and
records of Lessor with respect to the ownership, maintenance, and operation of the Property,
including any appraisals, surveys, engineering, environmental, and other reports and analyses of
the Property which are in Lessor’s possession.
ARTICLE 15.
EMINENT DOMAIN
15.1 Agreement Governs. In the event of any acquisition of all or any part of the
Property, or any interest therein by eminent domain, whether by condemnation proceeding or
transfer in avoidance of an exercise of the power of eminent domain or otherwise during the Term
or any extension thereof the rights and obligations of the parties with respect to such appropriation
will be as provided in this Article 15.
15.2 Termination of Agreement. This will terminate if the entire Property is
permanently taken under the power of eminent domain or if a material part of the Property is taken
such that the operation of the Project cannot feasibly continue on the remaining portion of the
Property. If only part of the Property is permanently taken under the power of eminent domain and
Lessee can reasonably continue to operate the Project, this Lease will not terminate and will remain
in full force in effect with respect to the remaining portion of the Property.
15.3 Allocation of Condemnation Award. In the event of a permanent condemnation or
taking of all or part of the Property at any point during the Term or any extension thereof, Lessor
will be entitled to any award which may be made in such taking or con demnation to the extent
such award relates to the fee title to the Property, and Lessee will be entitled to any award which
may be made in such taking or condemnation to the extent it relates to the Project. Nothing
contained in this Article 15 will be deemed to give Lessor any interest in or to require Lessee to
assign to Lessor any separate awards designated by the condemning authority and Lessee will be
able to retain any separate award as designated by the condemning authority made to Lessee for
the taking of Lessee’s personal property, or the interruption of or damage to Lessee’s operations
on the Property, except to the extent that the separate award includes damages for lost sublease
rent, in which case Lessor will be entitled to its share of those damages.
ARTICLE 16.
TERMINATION
16.1 Termination by Lessor. This Lease may be terminated unilaterally by Lessor upon
Lessee’s failure to commence construction of any portion of the Project within five (5) years of
the effective date of this Lease, by providing prior written notice to Lessee one hundred and eighty
(180) days prior to termination.
16.2 Termination by Lessee. This Lease may be terminated unilaterally by Lessee for
convenience by providing prior written notice to Lessor one hundred and eighty (180) days prior
to termination.
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16.3 Termination by Agreement of the Parties. Notwithstanding Sections 16.1 or 16.2,
the Lease may be terminated by the mutual agreement of the parties at any time, upon terms and
conditions agreed to by the parties.
ARTICLE 17.
GENERAL PROVISIONS
17.1 Waiver and Modification. No provision of this Lease may be modified, amended
or added to except by an agreement in writing signed by all parties hereto.
17.2 Applicable Law. This Lease and all rights and obligations arising out of it will be
construed in accordance with the laws of the State of California and without regard to any conflict
of laws provisions.
17.3 Time. Time is of the essence with respect to the performance of every provision of
this Lease in which time of performance is a factor.
17.4 Authority to Execute Lease. Lessor and Lessee each acknowledge that it has all
necessary right, title, and authority to enter into and perform its obligations under this Lease, that
this Lease is a binding obligation of such party and has been authorized by all requis ite action
under the party’s governing instruments, that the individuals executing this Lease on behalf of
such party are duly authorized and designated to do so, and that no other signatories are required
to bind such party.
17.5 Consents. Whenever consent or approval of either party is required hereunder, that
party will not unreasonably withhold or delay such consent or approval, except as may be expressly
set forth to the contrary.
17.6 Entire Agreement. The terms of this Lease are intended by the parties as a final
expression of their agreement with respect to the terms as are included herein and may not be
contradicted by evidence of any prior or contemporaneous agreement
17.7 Severability. Any provision of this Lease which proves to be invalid, void, or
illegal in no way affects, impairs, or invalidates any other provisions hereof, and such other
provisions will remain in full force and effect.
17.8 Impartial Construction. The language in all parts of this Lease will be in all cases
construed as a whole according to its fair meaning and not strictly for or against either Lessor or
Lessee.
17.9 Notices. All notices, demands, and communications between Lessor and Lessee
will be in writing and given by personal delivery, facsimile transmission, electronic mail,
registered mail (return receipt requested with postage prepaid), Federal Express, or other reliable
private express delivery, addressed to Lessor or Lessee at the addresses shown in Section 1.3
above. Either party may, by notice to the other given pursuant to this Section 17.9, specify
additional or different addresses for notice purposes.
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17.10 Counterparts. This Lease may be executed in one or more counterparts, each of
which will constitute an original.
17.11 Lessee Approval. Whenever this Lease calls for approval by Lessee of an action
implementing the provisions of this Lease, the City Manager, or his or her designee, will have
authority to grant such approval, without necessity of further authorization or approval of the City
Council.
17.12 Lessor Approval. Whenever this Lease calls for approval by Lessor of an action
implementing the provisions of this Lease, the ______________________ of the University, or
his or her designee, will have authority to grant such approval, without necessity of further
authorization or approval of the Board of Trustees of the University.
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first
above written.
LESSOR:
BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, On Behalf Of
California Polytechnic State University, San Luis Obispo
By: Date:
APPROVED AS TO FORM:
By: Date:
LESSEE:
CITY OF SAN LUIS OBISPO, a California municipal corporation
By: Date:
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
By: J. Christine Dietrick Date:
City Attorney
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Exhibit A
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
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Exhibit B
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EXHIBIT B
MAP DEPICTING PROPERTY
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