Agenda packet — Arroyo Grande City Council, September 27, 2022 (part 3 of 4)

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(d) Lessee will use any reimbursement payment for general operating expenses and not in a manner which could be construed as an artifice or device under Treasury Regulation § 1.148-10 to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements.

Section 4. Use and Investment of Funds; Temporary Period.

4.1. Lessee has incurred or will incur, within six (6) months from the date of issuance of the Financing Documents, binding obligations to pay an amount equal to at least five percent (5%) of the Principal Amount toward the costs of the Equipment. An obligation is not binding if it is subject to contingencies within Lessee’s control. The ordering and acceptance of the items of Equipment will proceed with due diligence to the date of final acceptance of the Equipment.

4.2. An amount equal to at least eighty-five percent (85%) of the Principal Amount will be expended to pay the cost of the Equipment by the end of the three-year period commencing on the date of this Certificate. No portion of the Principal Amount will be used to acquire investments that do not carry out the governmental purpose of the Financing Documents and that have a substantially guaranteed yield of four (4) years or more.

4.3.(a) Lessee covenants and agrees that it will rebate an amount equal to excess earnings on the Principal Amount deposited under the Escrow Agreement to the Internal Revenue Service if required by, and in accordance with, Section 148(f) of the Code, and make the annual determinations and maintain the records required by and otherwise comply with the regulations applicable thereto. Lessee reasonably expects to cause the Equipment to be acquired by September 30, 2023. (b) Lessee will provide evidence to Lessor that the rebate amount has been calculated and paid to the Internal Revenue Service in accordance with Section 148(f) of the Code unless (i) the entire Principal Amount is expended on the Equipment by the date that is the six-month anniversary of the Financing Documents or (ii) the Principal Amount is expended on the Equipment in accordance with the following schedule: At least fifteen percent (15%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment within six months from the date of issuance of the Financing Documents; at least sixty percent (60%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment within 12 months from the date of issuance of the Financing Documents; and one hundred percent (100%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment prior to eighteen (18) months from the date of issuance of the Financing Documents.
(c) Lessee hereby covenants that (i) Lessee is a governmental unit with general tax powers; (ii) the Lease is not a “private activity bond” under Section 141 of the Code; (iii) at least ninety-five percent (95%) of the Principal Amount is used for the governmental activities of Lessee; and (iv) the aggregate principal amount of all tax-exempt obligations (including the Lease) issued by Lessee and its subordinate entities, if any, during the current calendar year is not reasonably expected to exceed $10,000,000. Accordingly, the rebate requirements of Section 148(f) of the Code are treated as being met, in lieu of the spending exceptions set forth in paragraph (b) above.

Section 5. Escrow Account.

The Financing Documents provide that the monies deposited in escrow shall be invested until payments to the vendor(s) or manufacturer(s) of the Equipment are due. Lessee will ensure that such investment will not result in Lessee's obligations under the Financing Documents being treated as an "arbitrage bond" within the meaning of Section 148(a) of the Internal Revenue Code of 1986, as amended (the "Code"), respectively. Any monies which are earned from the investment of these funds shall be labeled as interest earned. All such monies will be disbursed on or promptly after the date that Lessee accepts the

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Equipment. Lessee acknowledges that the provisions of Sections 2 and 4 herein are particularly applicable when the Principal Amount is funded into an Escrow Fund subject to the Escrow Agreement.

Section 6. No Private Use; No Consumer Loan.

6.1. Lessee will not exceed the private use restrictions set forth in Section 141 of the Code. Specifically, Lessee will not permit more than 10% of the Principal Amount to be used for a Private Business Use (as defined herein) if, in addition, the payment of more than ten percent (10%) of the Principal Amount plus interest earned thereon is, directly or indirectly, secured by (i) any interest in property used or to be used for a Private Business Use or (ii) any interest in payments in respect of such property or derived from any payment in respect of property or borrowed money used or to be used for a Private Business Use.

6.2 In addition, if both (A) more than five percent (5%) of the Principal Amount is used as described above with respect to Private Business Use and (B) more than five percent (5%) of the Principal Amount plus interest earned thereon is secured by Private Business Use property or payments as described above, then the excess over such five percent (5%) (the “Excess Private Use Portion”) will be used for a Private Business Use related to the governmental use of the Equipment. Any such Excess Private Use Portion of the Principal Amount will not exceed the portion of the Principal Amount used for the governmental use of the particular project to which such Excess Private Use Portion is related. For purposes of this paragraph 6.2, “Private Business Use” means use of bond proceeds or bond financed-property directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and excluding use as a member of the general public.

6.3. No part of the Principal Amount or interest earned thereon will be used, directly or indirectly, to make or finance any loans to non-governmental entities or to any governmental agencies other than Lessee.

Section 7. No Federal Guarantee.

7.1. Payment of the principal or interest due under the Financing Documents is not directly or indirectly guaranteed, in whole or in part, by the United States or an agency or instrumentality thereof.

7.2. No portion of the Principal Amount or interest earned thereon shall be (i) used in making loans the payment of principal or interest of which are to be guaranteed, in whole or in part, by the United States or any agency or instrumentality thereof, or (ii) invested, directly or indirectly, in federally insured deposits or accounts if such investment would cause the financing under the Financing Documents to be "federally guaranteed" within the meaning of Section 149(b) of the Code.

Section 8. Miscellaneous.

8.1. Lessee shall keep a complete and accurate record of all owners or assignees of the Financing Documents in form and substance satisfactory to comply with the registration requirements of Section 149(a) of the Code unless Lessor or its assignee agrees to act as Lessee's agent for such purpose.

8.2. Lessee shall maintain complete and accurate records establishing the expenditure of the Principal Amount and interest earnings thereon for a period of five (5) years after payment in full under the Financing Documents.

8.3. To the best of the undersigned’s knowledge, information and belief, the above expectations are reasonable and there are no other facts, estimates or circumstances that would materially change the expectations expressed herein.

8.4. The Lessee’s Tax Identification Number is: 95-6000668.

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IN WITNESS WHEREOF, this Post-Issuance Tax Compliance Procedures Certificate has been executed on behalf of Lessee as of September 30, 2022.

CITY OF ARROYO GRANDE, As Lessee
By: _________________________________
Name: Whitney McDonald
Title: City Manager

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EXHIBIT H

ESCROW AGREEMENT
LESSOR:

Holman Capital Corporation
25231 Paseo de Alicia, Suite 105
Laguna Hills, CA 92653
ESCROW AGENT:

Community Bank of Santa Maria
PO Box 5307
Santa Maria, CA 93456
LESSEE:

City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
THIS ESCROW AGREEMENT (this “Escrow Agreement”) is made as of September 30, 2022, between Holman Capital Corporation (“Lessor”), the City of Arroyo Grande (“Lessee”), and Community Bank of Santa Maria (the “Escrow Agent”).

Lessor and Lessee have heretofore entered into that certain Payment Schedule No. 1 (the “Payment Schedule”) under that Master Equipment Lease-Purchase Agreement dated September 30, 2022 (the “Master Lease Agreement”). The Payment Schedule and Master Lease Agreement are jointly referred to herein as the “Lease.” The Lease contemplates that certain Equipment described therein (the “Equipment”) is to be acquired from the vendor(s) or manufacturer(s) thereof.

After acceptance of the Equipment by Lessee, the Equipment is to be leased by Lessor to Lessee pursuant to the terms of the Lease.

The Lease contemplates that Lessor will deposit with the Escrow Agent cash in the amount of $749,102.20 (the “Deposit Amount”), for deposit into the escrow fund (the “Escrow Fund”), to be held in escrow by the Escrow Agent and applied on the express terms and conditions set forth herein. Such deposit into the Escrow Fund, together with all interest and additions received with respect thereto, is to be applied from time to time to pay the vendor(s) or manufacturer(s) of the Equipment its invoice cost (a portion of which may, if required, be paid prior to final acceptance of the Equipment by Lessee).

The Escrow Fund is to be held for the account and benefit of Lessee, and Lessee has granted to Lessor a first priority and perfected lien on and security interest in the Escrow Fund and any all proceeds, interest and other earnings thereon and investments therein to the Lessor by virtue of the execution of this Escrow Agreement and the Lease without the need for any additional filings or financing statements.

The parties desire to set forth the terms on which the escrow is to be created and to establish the rights and responsibilities of the parties hereto.

NOW, THEREFORE, the parties agree as follows:

1. The Escrow Agent hereby agrees to serve as escrow agent upon the terms and conditions set forth herein. The Escrow Agent agrees that the Escrow Fund shall be held irrevocably in trust for the account and benefit of Lessee and all interest earned with respect to the Escrow Fund shall accrue to the benefit of Lessee and shall be applied as expressly set forth herein.

To the limited extent required to perfect the first, priority security interest granted by Lessee to Lessor in the cash and negotiable instruments from time to time held in the Escrow Fund, Lessor hereby appoints the Escrow Agent as its security agent, and the Escrow Agent hereby accepts the

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appointment as security agent, and agrees to hold physical possession of such cash and negotiable instruments on behalf of Lessor.

2. On such day as determined to the mutual satisfaction of the parties pursuant to the terms of the Payment Schedule (the “Commencement Date”), Lessor shall deposit with the Escrow Agent cash in the amount of the Deposit Amount to be held by the Escrow Agent on the express terms and conditions set forth herein. The Escrow Agent agrees to accept the deposit of the Deposit Amount by Lessor with the Escrow Agent, and further agrees to hold the amount so deposited together with all interest and other additions received with respect thereto in escrow on the express terms and conditions set forth herein.

3. The Escrow Agent shall at all times segregate the Escrow Fund into an account maintained for that express purpose, which shall be clearly identified on the books and records of the Escrow Agent as being held in its capacity as Escrow Agent. Securities and other negotiable instruments held in the Escrow Fund from time to time shall be held or registered in the name of the Escrow Agent (or its nominee). The Escrow Fund shall not, to the extent permitted by applicable law, be subject to levy or attachment or lien by or for the benefit of any creditor of any of the parties hereto (except with respect to the security interest therein held by Lessor).

4. Lessee hereby directs the Escrow Agent to invest the cash held in the Escrow Fund from time to time in a Community Bank of Santa Maria non-interest bearing demand deposit account with no fees or costs or, in the event such fund is not at the time available, such other investments as Lessee may specify in writing, to the extent the same are at the time legal for investment of the funds being invested. Interest or other amounts earned and received by the Escrow Agent with respect to the Escrow Fund shall be deposited in and become a part of the Escrow Fund. No investment shall be made that would cause the Lease to be deemed to be an arbitrage bond within the meaning of Section 148(a) of the Internal Revenue Code of 1986, as amended.

5. Lessor and Lessee hereby authorize the Escrow Agent to take the following actions with respect to the Escrow Fund:
a. From time to time, the Escrow Agent shall pay the vendor or manufacturer of the Equipment payments then due and payable, or reimburse Lessee for amounts that it has paid to the vendor or manufacturer of the Equipment, upon receipt of the following: (a) a duly executed Certificate of Acceptance and Payment Request in the form attached as Exhibit A hereto, (b) the vendor(s) or manufacturer(s) invoice(s) specifying the acquisition price of the Equipment described in the requisition request, and (c) any additional documentation required by Lessor. b. If Lessor provides to the Escrow Agent written notice of the occurrence of an Event of Default or an Event of Nonappropriation by Lessee under the Master Lease Agreement or Payment Schedule, the Escrow Agent shall thereupon promptly remit to Lessor the entire balance of the Escrow Fund. c. Upon receipt by the Escrow Agent of a duly executed Certificate of Acceptance and Payment Request identified as the final such request, the Escrow Agent shall transfer the then remaining balance of the Escrow Fund to Lessee, upon the express condition that Lessee hereby agrees to use such excess amount solely for capital expenditures as shall be approved by Lessee or, at the written direction of Lessee, for application against the interest component of the Lessee’s payment obligation under the Lease, as provided therein, unless otherwise agreed by Lessor.

6. The Escrow Agent shall have no liability for acting upon any written instruction presented by Lessee and Lessor in connection with this Escrow Agreement that the Escrow Agent in good faith believes to be genuine. Furthermore, the Escrow Agent shall not be liable for any act or omission in connection

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with this Escrow Agreement except for its own gross negligence, willful misconduct, or bad faith. The Escrow Agent shall not be liable for any loss or diminution in value of the Escrow Fund as a result of the investments made pursuant to Section 4.

7. To the extent authorized by law, Lessee hereby agrees to indemnify and save the Escrow Agent harmless against any liabilities that it may incur in the exercise and performance of its powers and duties hereunder and that are not due to the Escrow Agent’s gross negligence or willful misconduct.

No indemnification will be made under this Section or elsewhere in this Escrow Agreement for damages arising solely out of gross negligence, willful misconduct, or bad faith by the Escrow Agent, its officers, agents, employees, successors or assigns.

8. The Escrow Agent may at any time resign by giving at least 30 days’ prior written notice to Lessee and Lessor, but such resignation shall not take effect until the appointment of the successor Escrow Agent.

The substitution of another bank or trust company to act as Escrow Agent under this Escrow Agreement may occur by written agreement of Lessor and Lessee. In addition, the Escrow Agent may be removed at any time, with or without cause, by instrument in writing executed by Lessor and Lessee. Such notice shall set forth the effective date of the removal. In the event of any resignation or removal of the Escrow Agent, a successor Escrow Agent shall be appointed by an instrument in writing executed by Lessor and Lessee. Such successor Escrow Agent shall indicate its acceptance of such appointment by an instrument in writing delivered to Lessor, Lessee and the predecessor Escrow Agent.

Upon the effective date of resignation or removal, the Escrow Agent will transfer the Escrow Fund then held by it to the successor Escrow Agent selected by Lessor and Lessee.

9. This Escrow Agreement shall terminate upon receipt by the Escrow Agent of the written notice from Lessor specified in Section 5(b) or Section 5(c) hereof.

10. All notices hereunder shall be in writing, sent by certified mail, return receipt requested, or by mutually recognized overnight carrier addressed to the other party at its respective address shown on page 1 of this Escrow Agreement or at such other address as such party shall from time to time designate in writing to the other parties; and shall be effective on the date or receipt.

11. This Escrow Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and assigns. No rights or obligations of the Escrow Agent under this Escrow Agreement may be assigned without the prior written consent of Lessor and Lessee.

12. This Escrow Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and no waiver, consent, modification, or change of terms hereof shall bind any party unless in writing signed by all parties.

13. The Escrow Agent may employ agents, attorneys and accountants in connection with its duties hereunder and shall not be liable for any action taken or omitted in good faith in accordance with the advice of counsel, accountants, or other skilled persons.

14. This Escrow Agreement shall be governed by and be construed and interpreted in accordance with the internal laws of the State of California.
[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be duly executed as of the day and year first above set forth.

LESSOR: HOLMAN CAPITAL CORPORATION
By:

Name: Lance S. Holman
Title: President & CEO
LESSEE: CITY OF ARROYO GRANDE
By:

Name: Whitney McDonald
Title: City Manager
ROW AGENT:

ESCROW AGENT: COMMUNITY BANK OF SANTA MARIA
By:

Name: Lisa Canale
Title: EVP, Chief Credit Officer

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EXHIBIT A TO ESCROW AGREEMENT

CERTIFICATE OF ACCEPTANCE AND PAYMENT REQUEST
The following payment request is directed to Community Bank of Santa Maria (the “Escrow Agent”), as escrow agent under that certain Escrow Agreement dated September 30, 2022 (the “Escrow Agreement”), between the City of Arroyo Grande (“Lessee”), Holman Capital Corporation (“Lessor”), and the Escrow Agent. Because Holman Capital Corporation has assigned all of its right, title, and interest in and to the Escrow Agreement to Community Bank of Santa Maria, all references herein to “Lessor” shall mean Community Bank of Santa Maria.

The Escrow Agent is hereby requested to pay from the Escrow Fund established and maintained under the Escrow Agreement the amount set forth below to the named payee(s). The amount shown is due and payable under a purchase order or contract (or has been paid by and not previously reimbursed to Lessee). The equipment described below is part or all of the Equipment leased pursuant to that certain Payment Schedule No. 1 (the “Payment Schedule”) executed pursuant to the Master Equipment LeasePurchase Agreement dated September 30, 2022 (the “Master Lease Agreement”), between Lessor and Lessee:

QUANTITY

DESCRIPTION OF

UNITS OF EQUIPMENT AMOUNT PAYEE
Lessee hereby certifies and represents to and agrees with Lessor as follows with respect to the Equipment described above: (i) the Equipment has been delivered to the location(s) set forth in the Payment Schedule; (ii) a present need exists for the Equipment, which need is not temporary or expected to diminish in the near future; (iii) the Equipment is essential to and will be used by Lessee only for the purpose of performing one or more governmental functions of Lessee consistent with the permissible scope of Lessee’s authority; (iv) the estimated useful life of the Equipment based upon the manufacturer’s representations and Lessee’s projected needs is not less than the term of the Payment Schedule; (v) Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes as of the date of this Certificate; (vi) the Equipment is covered by insurance in the types and amounts required by the Master Lease Agreement; (vii) no Event of Default or Event of Nonappropriation, as those terms are defined in the Master Lease Agreement, and no event that with the giving of notice or lapse of time or both, would become an Event of Default or an Event of Nonappropriation, has occurred and is continuing on the date hereof; and (viii) sufficient funds have been appropriated by Lessee for the payment of all rental payments due under the Payment Schedule during Lessee’s current Fiscal Year.

Based on the foregoing, the Escrow Agent is hereby authorized and directed to fund the acquisition of the Equipment set forth above by paying, or causing to be paid, the manufacturer(s)/vendor(s) the amounts set forth on the attached invoices from the Escrow Fund held under the Escrow Agreement in accordance with its terms.

The following documents are attached hereto and made a part hereof: (a) Original Invoice(s) and (b) Copies of Certificate(s) of Ownership, designating Lessor as legal owner, and evidence of filing.

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IF REQUEST IS FINAL REQUEST, CHECK HERE . The undersigned hereby certifies that the items of Equipment described above, together with the items of Equipment described in and accepted by Certificates of Acceptance and Payment Requests previously filed by Lessee with Lessor constitute all of the Equipment subject to the Payment Schedule.

Date: ______________
Approved:

COMMUNITY BANK OF SANTA MARIA, as Lessor CITY OF ARROYO GRANDE, as Lessee By: By:

Name: Name:

Title: Title:

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SCHEDULE A TO ESCROW AGREEMENT:

NOTICE AND ACKNOWLEDGEMENT OF

ASSIGNMENT OF ESCROW AGREEMENT
Holman Capital Corporation ("Lessor"), City of Arroyo Grande ("Lessee"), and Community Bank of Santa Maria ("Escrow Agent") have entered into an Escrow Agreement dated September 30, 2022 (the "Escrow Agreement'), pursuant to which Lessor, or its Assignee (as defined below), has deposited cash into the Escrow Fund established thereunder, which funds are to be used by Lessee to acquire certain Equipment.

Escrow Agent is hereby notified that Lessor has assigned all of its right, title, and interest in and to, but not its obligations under, the Escrow Agreement to Community Bank of Santa Maria ("Assignee"), including, in particular, but without limitation, Lessor's security interest in the Escrow Fund and Lessor's right to approve all payment requests submitted by Lessee.

Date: September 30, 2022
LESSOR: HOLMAN CAPITAL CORPORATION
By:

Name: Lance S. Holman
Title: President & CEO
LESSEE: CITY OF ARROYO GRANDE
By:

Name: Whitney McDonald
Title: City Manager
ESCROW AGENT: COMMUNITY BANK OF SANTA MARIA
By:

Name: Lisa Canale
Title: EVP, Chief Credit Officer

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EXHIBIT I

RESOLUTION OF LESSEE

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EXHIBIT J
UCC-1 FINANCING STATEMENT

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EXHIBIT K
IRS FORM 8038-G
[To be prepared by Holman Capital Corporation]

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EXHIBIT L

CLOSING MEMORANDUM
$749,102.20 LEASE FOR PUBLIC SAFETY EQUIPMENT PROJECT
PURSUANT TO PAYMENT SCHEDULE NO. 1 ISSUED UNDER THE MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT DATED SEPTEMBER 30, 2022 BETWEEN CITY OF ARROYO GRANDE, AS LESSEE, AND

HOLMAN CAPITAL CORPORATION, AS LESSOR
Pre-Closing: Pre-Closing will be held at the Lessee’s convenience, on or before September 28, 2022. All documents will be executed and two (2) blue ink originals will be overnighted to Holman Capital Corporation, Attn.: Jane Taubman, 25231 Paseo De Alicia Suite 105 Laguna Hills, CA 92653, for delivery no later than 9:00 am on the morning of September 28, 2022 and held in trust until such time as the wires and original documents are released by the Parties.

Closing: (1) By internal funds transfer and pending receipt of original, executed Payment Schedule and related documents, on the morning of September 30, 2022, Community Bank of Santa Maria (the Investor) is authorized by Lessee to transfer via internal credit the Total Equipment Cost (as set forth below) to Escrow Agent, pursuant to a general ledger credit to the Escrow Account as follows:

Bank Name: Community Bank of Santa Maria
ABA No: 122243237
Account No: XXX1482
Account Name: City of Arroyo Grande
(2) By wire transfer and pending receipt of original, executed Payment Schedule and related documents, on the morning of September 30, 2022, the Investor is authorized by Lessee to transfer via wire the Issuance Costs (as defined below) to Lessor as follows:

Bank Name: Citizens Business Bank
ABA Number: 122234149
Account Number: XXXXX1323
Account Name: Holman Capital Corporation
Holman Capital Corporation will confirm disbursement of funds to the Lessee’s escrow account and then release all of the original documents held in trust to the investor and forward a copy to the Lessee. Upon conformation by Escrow Agent of the Lease Proceeds, Lessee will wire closing costs, legal fees and other amounts to the parties in accordance with the invoices attached hereto.

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Sources and Uses of Funds:

Principal Amount of Lease $749,102.20
TOTAL SOURCES $749,102.20
Total Equipment Cost: $746,102.20
Issuance Costs: $3,000.00
TOTAL LEASE PROCEEDS $749,102.20

LESSEE: CITY OF ARROYO GRANDE
By: _____________________________
Name: Whitney McDonald
Title: City Manager

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ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING FOURTEEN VEHICLES

AS SURPLUS AND AUTHORIZING THEIR SALE OR

DISPOSAL
WHEREAS, the City of Arroyo Grande (“City”) owns eight (8) Ford Explorers, one (1) Dodge Ram truck, one (1) Ford F550 truck, two (2) Dodge Chargers, and two (2) Honda motorcycles which are being replaced;
WHEREAS, these items can be classified as surplus property and made available for sale to private parties or disposed of pursuant to State law.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande does declare as surplus the vehicles and equipment described in Exhibit A attached hereto and incorporated herein by this reference, and authorizes staff to sell/dispose of said vehicles and equipment in compliance with authorized disposition procedures.

On motion by Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 27th day of September, 2022.

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RESOLUTION NO.

PAGE 2

CAREN RAY RUSSOM, MAYOR
ATTEST:
______________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:

TIMOTHY J. CARMEL, CITY ATTORNEY

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RESOLUTION NO.

PAGE 3

EXHIBIT A

SURPLUS VEHICLES AVAILABLE FOR SALE AND/OR AUCTION

1. Unit 4602: 2017 Ford Explorer VIN: 1FM5K8AT7HGD59206

2. Unit 4603: 2017 Ford Explorer VIN: 1FM5K8AT9HGD59207

3. Unit 4604: 2017 Ford Explorer VIN: 1FM5K8AT0HGD59208

4. Unit 4605: 2017 Ford Explorer VIN: 1FM5K8AT2HGD59209

5. Unit 4606: 2017 Ford Explorer VIN: 1FM5K8AT9HGD59210

6. Unit 4607: 2017 Ford Explorer VIN: 1FM5K8AT0HGD59211

7. Unit 4608: 2017 Ford Explorer VIN: 1FM5K8AT2HGD592012

8. Unit 4609: 2017 Ford Explorer VIN: 1FM5K8AT4HGD59213

9. Unit 4613: 2015 Dodge Ram 1500 VIN: 1C6RR7XT8GS188505

10.Unit 4623: 2001 Ford F550 VIN: 1FDAF56F61EC51231

11.Unit 4612: 2016 Dodge Charger VIN: 2C3CDXAG3GH118558

12.Unit 4611: 2016 Dodge Charger VIN: 2C3CDXAG3GH122271

13.Unit 4620: 2005 Honda Motorcycle VIN: JH2SC51709K600129

14.Unit 4621: 2005 Honda Motorcycle VIN: JH2SC517X9K600123

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Item 8.h.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Jill McPeek, Capital Improvement Project Manager
SUBJECT: Consideration to Award Construction Contract to G. Sosa Construction, Inc. for 2022 Pedestrian Crossing Improvement Project, PW 2021-08, and Authorization of Budget Adjustment for $90,618 from Unexpended FY 2021-22 CIP Budget Funds
DATE: September 27, 2022
SUMMARY OF ACTION:

Awarding a construction contract to G. Sosa Construction, Inc., and allocating an additional $90,618 of unexpended FY 2021-22 Capital Improvement Program budget funds to the project will allow for sidewalk infill and pedestrian improvements at three intersections within the City. Work is anticipated to begin in October 2022 and be completed in January 2023.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The FY 2021-22 and FY 2022-23 Capital Improvement Program (CIP) budget included $250,000 of Highway Safety Improvement Program (HSIP) and $100,000 of Regional State Highway Account (RSHA) funds for the subject project, for a total project cost of $350,000. Upon receipt of construction bids, it is now estimated that the total project costs will be $440,618. The remaining balance of the project is $90,618 and it is proposed to fund this amount with unexpended American Rescue Plan Act (ARPA) and Sales Tax funds from the FY 2021-22 Capital Improvement Program budget. Staff time will be necessary to coordinate construction activities with the design consultant, engineering inspector, and construction contractor.

Construction $ 321,202.75
Construction Contingencies 32,120.25
Contract Admin, Ads, Copies 11,910.00
Design & Survey 75,385.00
Total $ 440,618.00

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Item 8.h.

City Council
Consideration to Award Construction Contract to G. Sosa Construction, Inc. for 2022 Pedestrian Crossing Improvement Project, PW 2021-08, and Authorization of Budget Adjustment for $90,618 from Unexpended FY 2021-22 CIP Budget Funds September 27, 2022

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RECOMMENDATION:
1) Award a construction contract to G. Sosa Construction, Inc. in the amount of $321,202.75 and authorize the City Manager to approve change orders for up to 10% of the contract amount, $32,120.25, for unanticipated costs during the construction phase of the project (construction contract costs = $321,202.75 + $32,120.25 = $353,323); and 2) Approve a budget adjustment to appropriate $90,618 from unexpended FY 2021-22 Capital Improvement Program budget funds to cover the subject project expenditures.

BACKGROUND:

In 2018, the City was successful in securing $150,000 of RSHA funds through the San Luis Obispo Council of Government’s (SLOCOG’s) Safe Routes to School (SRTS) program for pedestrian improvements in the vicinity of Harloe Elementary School. As part of the 2018 Concrete Repairs project, $50,000 of these funds were used to install sidewalks along Farroll Avenue between Gaynfair Terrace and Alder Street. The remaining $100,000 was earmarked for sidewalk gap closures on South Halcyon Road and pedestrian crossing improvements at Sandalwood Avenue.

In 2020, the City was successful in securing $250,000 of State HSIP funds to install pedestrian crossing improvements at three intersections:
 South Halcyon Road at Sandalwood Avenue
 Farroll Avenue at South Halcyon Road
 East Grand Avenue at Alder Street
The two grants, totaling $350,000, were combined into one project, and at its July 26, 2022 meeting, the City Council approved the construction plans and specifications for the project (see Attachment 2). Also at this meeting, Council accepted two Public Pedestrian Access Easements and a Grant of Temporary Construction License acquired for the curb ramps at East Grand Avenue at Alder Street in order to meet current American with Disabilities (ADA) standards, and authorized staff to advertise for construction bids pending State approval of the allocation of construction funds. The State funds were allocated on August 4, 2022, and the project was advertised on August 8, 2022.

ANALYSIS OF ISSUES:

On September 8, 2022, eight bids were received for the 2022 Pedestrian Crossing Improvement Project (Attachment 1). The project specifications state that the lowest bidder will be determined using the Base Bid. There were no Bid Alternates. Following review, it has been determined that the lowest Base Bid was received from G. Sosa Construction, Inc., that G. Sosa Construction, Inc.’s bid is responsive, and that G. Sosa Construction, Inc. is a responsible bidder.

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Item 8.h.

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Based on the lowest base bid received, it is estimated that the total project costs will be $440,618, as shown in the table below, which is $90,618 more than what is currently budgeted for the Project. Staff recommends allocating unexpended funds from Fiscal Year 2021-22 Capital Improvement Projects to the Project, as follows:
 $24,958.42 of remaining FY 2021-22 ARPA funds from the Chevron Storm Drain project, which has been completed as follows:
$ 525,800.00 Budgeted
486,110.87 Expended
14,730.71 To be Used for Project Related Fencing Repairs $ 24,958.42 Remaining / Allocate to Pedestrian Crossings  $10,659.58 of remaining FY 2021-22 Sales Tax funds from the Castillo Del Mar project, which has been completed as follows:
$ 694,061.53 Budgeted
683,401.95 Expended
$ 10,659.58 Sales Tax Remaining / Allocate to Pedestrian Crossings  $55,000 of FY 2021-22 Sales Tax funding allocated to the Guardrails project that was not completed in FY 2021-22.

The following table depicts the current Project costs in light of received bids and the recommending funding sources for the new total project cost of $440,617:

Revenue
Available
Budget
Current
Estimate Shortfall
State HSIP $ 250,000.00 $ 250,000.00 $ 0.00
Regional SHA 100,000.00 100,000.00 0.00
ARPA (251 E Grand Storm Drain) 0.00 24,958.42 24,958.42 Sales Tax (Castillo Del Mar Extension) 0.00 10,659.58 10,659.58 Sales Tax (Guardrail Replacement) 0.00 55,000.00 55,000.00 Total Revenue $ 350,000.00 $ 440,618.00 $ 90,618.00

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Item 8.h.

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Expenditures
Construction $ 262,705.00 $ 321,202.75 $ 58,497.75
Construction Contingencies 0.00 32,120.25 32,120.25
Contract Admin, Ads, Copies 11,910.00 11,910.00 0.00
Design & Survey 75,385.00 75,385.00 0.00
Total Expenditures $ 350,000.00 $ 440,618.00 $ 90,618.00 The contract time is 60 working days and it is anticipated work will be performed October 2022 to January 2023.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Award a construction contract to G. Sosa Construction, Inc. in the amount of $321,202.75 and authorize the City Manager to approve change orders for up to 10% of the contract amount, $32,120.25, for unanticipated costs during the construction phase of the project (construction contract costs = $321,202.75 + $32,120.25 = $353,323.00); and approve a budget adjustment to appropriate $90,618.00 from unexpended FY 2021-22 Capital Improvement Program budget funds to cover the subject project expenditures;

2. Award a construction contract to G. Sosa Construction, Inc. in the recommended amounts but approve a budget adjustment to appropriate $90,618 from excess available General Fund balance;

3. Do not approve a construction contract to G. Sosa Construction, Inc.; or

4. Provide other direction to staff.

ADVANTAGES:

Installation of improvements at uncontrolled pedestrian crossings will address one of the main safety issues in the City (where fatal and severe injury pedestrian to vehicle collisions occur) as identified in the Local Road Safety Plan (LRSP). Installation of sidewalks where none currently exists will provide safe and continuous access for pedestrians in the vicinity of Harloe Elementary School.

DISADVANTAGES:

There will be intermittent sidewalk closures during the project. These closures will be minimized as much as possible and the project specifications require the contractor to notify affected residents and businesses in advance. In addition, staff will work with Lucia Mar School District and Harloe Elementary School personnel to coordinate disruptions to parents and students accessing the school from Farroll Avenue.

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Item 8.h.

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ENVIRONMENTAL REVIEW:

The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guideline Section 15301(c) for repairs and maintenance of existing streets, sidewalks, gutters and similar facilities.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Bid Opening Log Sheet

2. July 26, 2022 Staff Report and Attachments

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CITY OF ARROYO GRANDE

BID OPENING LOG SHEET
DEADLINE: THURSDAY, SEPTEMBER 8, 2022 - 2:00 PM
PROJECT NAME: 2022 PEDESTRIAN CROSSING IMPROVEMENTS
PROJECT NO.: PW 2021-08
ESTIMATED CONSTRUCTION COST: $270,100
ADDENDUM: 2
SUBMITTED BY: TOTAL

1. G. Sosa Construction, Inc. $ 321,202.75
Nipomo, CA

2. DOD Construction LTD $ 358,856.50
Bakersfield, CA

3. Spiess Construction Co., Inc. $ 465,377.00
Santa Maria, CA

4. J.J. Fisher Construction, Inc. $ 376,628.65
Nipomo, CA

5. The J.F. Will Company, Inc. $ 376,226.30
Santa Maria, CA

6. Souza Construction $ 374,758.50
San Luis Obispo, CA

7. Brough Construction, Inc. $ 397,192.00
Arroyo Grande, CA

8. R. Burke Corporation $ 488,906.00
San Luis Obispo, CA
______________________________
Jill McPeek
Capital Improvement Project Manager
ATTACHMENT 1

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Item 8.j.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Jill McPeek, Capital Improvement Project Manager
SUBJECT: Consideration of Confirming the Environmental Determination, Acceptance of Grant of Temporary Construction License, Public Pedestrian Access Easement Deeds, and Approval of Construction Plans and Specifications for the 2022 Pedestrian Crossing Improvement
DATE: July 26, 2022
SUMMARY OF ACTION:

Confirming the environmental determination and acceptance of the right of way documents will allow the City to obtain allocated grant funding for the construction phase of the project and to advertise for construction bids for the 2022 Pedestrian Crossing Improvements Project.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

An allocation of $205,000 of Highway Safety Improvement Program (HSIP) funds is included for the project in the FY 2022-23 Capital Improvement Program budget. It is estimated that approximately $80,774 ($45,000 HSIP funds and $35,774 Regional State Highway Account (RSHA) funds) will be carried over from FY 2021-22 for a total available budget of approximately $285,774 available for the bidding and construction phases of the project. Staff time will be necessary to provide direction and answer questions to prospective bidders.

RECOMMENDATION:
1) Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Section 15301(c) and direct staff to file a Notice of Exemption; 2) Accept the Grant of Temporary Construction License and Public Pedestrian Access Easement Deeds and direct staff to file the License and Deeds; and 3) Approve the construction plans and specifications for the 2022 Pedestrian Crossing Improvements Project, PW 2021-08, and authorize staff to advertise for construction bids pending approval of a funding allocation from the State.

ATTACHMENT 2

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Item 8.j.

City Council
Consideration of Confirming the Environmental Determination, Acceptance of Grant of Temporary Construction License, Public Pedestrian Access Easement Deeds, and Approval of Construction Plans and Specifications for the 2022 Pedestrian Crossing Improvement
July 26, 2022

Page 2 ends

BACKGROUND:

In 2020, the City was successful in securing $250,000 of State HSIP funds to install pedestrian crossing improvements at three intersections:
 South Halcyon Road at Sandalwood Avenue
 Farroll Avenue at South Halcyon Road
 East Grand Avenue at Alder Street
With both grant funding sources in place, staff began working with its design consultant in preparing construction documents for public bid. During design it was revealed that in order to make grades to meet current American with Disabilities (ADA) standards for the curb ramps at East Grand Avenue at Alder Street, additional right of way would be required. Staff has coordinated with the two property owners, who have executed Public Pedestrian Access Easement Deeds for the additional property needed for the project, as well as a Grant of Temporary Construction License to allow for some additional area needed to accommodate construction activities.

In order to bid the project and provide immunity to the City, the City Council is requested to approve the plans and specifications prior to the construction bidding process. In addition, the scope of work is proposed to be evaluated pursuant to CEQA prior to bidding.

Before the City can bid the project, the City must request an allocation of State funds from the HSIP program for the construction phase of the project. Both the environmental determination and right of way documents need to be completed before the City can request the allocation. Council’s action of confirming the environmental determination and acceptance of the right of way documents will allow staff to submit the allocation request.

Once the State approves the allocation, staff can advertise for construction bids.

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Item 8.j.

Page 3 ends

ANALYSIS OF ISSUES:

The general scope of work includes:

South Halcyon Road Pedestrian Crossing at Sandalwood Avenue  Installation of bulbouts and replacement of the existing rectangular rapid flashing beacons (RRFBs) on each side of South Halcyon Road
 Installation of yield to pedestrian signs and yield lines on South Halcyon Road  Installation of ADA curb ramps and yellow continental school crosswalks on South Halcyon Road and on Sandalwood Avenue
Farroll Avenue Pedestrian Crossing at South Halcyon Road  Installation of ADA curb ramps and yellow continental school crosswalk on Farroll Avenue
South Halcyon Road Sidewalk Gap Closure
 Installation of sidewalk, curb and gutter and ADA curb ramps on the east side of South Halcyon Road between Cameron Court and Virginia Drive
East Grand Avenue Pedestrian Crossing at Alder Street
 Installation of rectangular rapid flashing beacons (RRFBs) on each side of East Grand Avenue
 Installation of yield to pedestrian signs, yield lines, and continental crosswalk on East Grand Avenue
 Installation of ADA curb ramps and continental crosswalk on Alder Street The estimated construction cost of the project is $270,100 and the proposed contract time is 60 working days. Pending approval of a funding allocation from the State and if successful bids are received and a construction contract is awarded, work is expected to be performed between October 2022 and January 2023. Plans and specifications are available for review at the Public Works Department.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Approve staff’s recommendations as proposed;

2. Do not approve staff’s recommendations as proposed;

3. Modify staff’s recommendation and approve; or

4. Provide other direction to staff.

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Item 8.j.

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ADVANTAGES:

Installation of improvements at uncontrolled pedestrian crossings will address one of the main safety issues in the City (where fatal and severe injury pedestrian to vehicle collisions occur) as identified in the Local Road Safety Plan (LRSP). Installation of sidewalk where none currently exists will provide safe and continuous access for pedestrians in the vicinity of Harloe Elementary School. Confirming the environmental determination and acceptance of the right of way documents will allow the City to request funding for the construction phase of the project.

DISADVANTAGES:

ENVIRONMENTAL REVIEW:

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachment:

1. Notice of Exemption

2. Public Pedestrian Access Easement Deed (077-221-030)

3. Public Pedestrian Access Easement Deed (077-223-061)

4. Grant of Temporary Construction License (077-223-061)

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ATTACHMENT 1

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ATTACHMENT 2

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ATTACHMENT 3

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ATTACHMENT 4

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Item 8.i.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Monthly Water Supply and Demand Update
DATE: September 27, 2022
SUMMARY OF ACTION:

The update reports the City’s total water supply and demand for August, 2022. Current Lopez Reservoir level and projected levels are provided in the attachments.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approximately two (2) hours of staff time is required to prepare the report.

RECOMMENDATION:

Receive and file the monthly Water Supply and Demand Report.

BACKGROUND:

On October 12, 2021, the City Council adopted a Resolution declaring a Stage 1 Water Shortage Emergency, and implementing emergency water conservation measures and restrictions as a result of the extreme drought conditions.

In August, the City’s water use was 196.4 acre-feet with a per capita use of 115 gallons per day/per person. There was a total of 0 inches of rainfall in the City in August, 2022.

ANALYSIS OF ISSUES:

The United States Drought Monitor, as of September 8, 2022, shows San Luis Obispo County in a severe drought. Rainfall to date for the period July 1, 2022, through August 31, 2022, is 0 inches at the Corporation Yard rain gauge. Lopez Lake, as of September 12, 2022, is at 24.2% capacity (11,942).

The new water year began on April 1, 2022, and the City’s annual Lopez Lake contract supply had been reduced to 10% on August 24, 2021, by the enactment of the Low Reservoir Response Plan (LRRP). On July 21, 2022, the Zone 3 Advisory Board approved the Technical Advisory Committee’s recommendations to reduce contract

Page 340 of 514 ends

Item 8.i.

City Council
Monthly Water Supply and Demand Update
September 27, 2022

Page 2 ends

deliveries by 20% prior to the lake reaching 10,000 acre feet. As a result, the City began reducing the flow of deliveries on July 26, 2022, to 1.7 million gallons per day compared to the normal flow of 2.2. million gallons per day.

In addition to Lopez Lake deliveries, the City has 1323 acre-feet of groundwater entitlement from the Santa Maria basin and wells within the Pismo formation that can produce 160 acre-feet per year. The third quarter monitoring for the Santa Maria Basin sentry wells was completed on July 11th. The deep well index was 5.34 feet above sea level, which is 2.16 feet below the deep well index threshold value of 7.5 feet and 1.91 feet lower than the index value one year ago. This is the first quarter that the level has been below the 7.5 threshold value. If the index level stays below the 7.5 level for six consecutive quarters, or if indication of sea water intrusion occurs, this could trigger additional water restrictions for Arroyo Grande.

The predicted use for water year 2022/23 is 2,213 acre-feet based on average rainfall.

The August 2022 water use was 10% lower that the August 2021 water use. This reduction met the City’s goal of an overall 10% reduction from the same month in 2021.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Receive and file the report; or

2. Provide other direction to staff.

ADVANTAGES:

This report provides the City Council and the public with the current and projected conditions of the City’s water supply and demand.

DISADVANTAGES:

No disadvantages noted at this time.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Lopez Monthly Operations Report for August, 2022

2. Lopez Reservoir Storage Projection

3. Monthly Water Use Comparison

4. Monthly Monitoring Report for August, 2022

Page 341 of 514 ends

San Luis Obispo County Flood Control and Water District Zone 3 - Lopez Project - Monthly Operations Report
August, 2022

0.00 Note: Deliveries are in acre-feet. One acre foot = 325, 850 gallons or 43, 560 cubic feet. Safe yield is 8,730 acre-feet "Year to Date" is January to present for State water, April to present for Lopez deliveries, and July to present for rainfall. 824.80
April to Present

0.00 Arroyo Grande 1832
Lopez Dam OperationsLake Elevation (full at 522.37 feet) 461.01Storage (full at 49200 acre feet) 12100Rainfall 0Downstream Release (4200 acre feet/year) 185.36Spillage (acre feet) 0 This Month Year to Date
915.45

0.00 742.00 161.70
Entl. Surplus
Water
Declared Usage
2574
Total
Available
Water
Lopez Water Deliveries
Oceano CSD 242.4 375.00 617 0.00 0.00Grover Beach 640 204.00 844 67.02 330.86Pismo Beach 713.6 1048.00 1762 25.85 98.96CSA 12 196 230.00 426 8.82 39.83 1240 130.00 953.91
96 9.50 63.33
750 44.50 307.78
State Water Deliveries
Total 3624 2599.00 6223 263.39 1294.45 2206 189.59 1383.54 Contractor
Difference (feet) -61.36
% Full 24.6%
Comments:
1) Oceano supplied water to Canyon Crest via Arroyo Grande's Edna turn out. A total of 2.37 AF delivered to Canyon Crest was added to Oceano's water usage this month and 2.37 AF was subtracted from Arroyo Grande's usage this month.2) Lopez Water Deliveries are now operated under the Low Reservoir Response Plan (LRRP). On July 21, 2022 AC endorsed a 20% entitlement reduction (retroactive to April 2022) in anticipation of reaching the 10,000 AF trigger of the LRRP. Entitlements shown represent a 20% reduction. 3)Surplus water shown is actually "Carry Over" water as designated in the LRRP.4) On April 2022, the County presented the Stored State Water minus evaporation losses dating back to the January 1, 2015 water recharacterization.On December 31, 2021 the calculated Stored State Water minus evaporation losses was 659.82 AF. Evaporation losses will be presented annually.

April to Present Lopez Entitlement+Surplus Water Usage
0 50
100150200
Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Acre Feet
AG GB OCSD PB CSA12
January to Present State Water Usage
0 50
100150
Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Acre Feet
OCSD PB CSA12 SanMig
San Miguelito 120 5.59 58.52
This Month
%
Total
January to Present
Usage
This Month
% of
Annual
Request
Usage % of Annual
Request
161.7
Total Water
Deliveries
This Month

44.5 67.02
155.85

18.32 5.59
452.98
Annual
Request

0.00 Usage

0.000.000.000.00
%

0.000.000.000.000.00
824.80

0.00 330.86

98.9639.83

0.00 1294.45 1593.00
SWP
Deliveries
SWP
Deliveries
Change in
Storage
249 59.41
This Month Stored State Water 869.28

0.0%

8.8% 32.0%0.0% 0.0%

10.5% 39.2%

3.6% 5.6%4.5% 9.3%

10.5% 76.9%

9.9% 66.0%5.9% 41.0%

7.3% 20.8% 8.6% 62.7%

4.7% 48.8%

0.0%0.0%0.0%0.0%0.0%

45.0%

0.0%

51.7%13.9%20.3%

0.0% 35.7%
Entitlement Surplus
Usage
% Usage
%
Entitlement Surplus
Usage
%
Last Month Stored State Water 809.87
Surplus
Requested
742.00375.00204.00
1048.00
230.00
2599.00
Monday, September 12, 2022 Data entered by: D. Bravo Report printed by: Admin Page 1 of 1 ATTACHMENT 1

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5.44 0.54

4.70 2.14

0.24 0.52

1.42 5.16

0.22 0.94

2.38 0.30

7.33 0.43

0.34 2.87

3.10 2.77

0.90 0.33

0.060.030.02

0.32 0.62

1.34 2.03

3.02 3.25

2.91 1.13

0.410.070.030.02

0.32 0.62

1.70 2.24

3.12 2.982.84

0.98 0.36

0.070.030.02

0.35 0.67

1.84 2.24

2.76 2.98 3.01

0.98 0.41
12/8/2022

0.00 2.00

4.00 6.00

8.00 10.00

12.00 14.00
0 5000
10000
15000
20000
25000
30000
35000
40000
1/1/20202/1/20203/1/20204/1/20205/1/20206/1/20207/1/20208/1/20209/1/2020 10/1/202011/1/202012/1/2020
1/1/20212/1/20213/1/20214/1/20215/1/20216/1/20217/1/20218/1/20219/1/2021 10/1/202111/1/202112/1/2021
1/1/20222/1/20223/1/20224/1/20225/1/20226/1/20227/1/20228/1/20229/1/2022 10/1/202211/1/202212/1/2022
1/1/20232/1/20233/1/20234/1/20235/1/20236/1/2023
Storage (AF)
Date

LOPEZ RESERVOIR STORAGE PROJECTION
Actual Precipitation Predicted Precipitation Actual Storage 20,000 AF Storage Projection Storage Projection (No Rain) 10,000 AF
ATTACHMENT 2

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NOTE: There was a 10% reduction in August 2022 compared to August 2021 217.5
196.4
130
115
0 50
100150200250
Aug‐21 Aug‐22
Monthly Water Use Comparison
Acre Feet Usage (gpcd)
ATTACHMENT 3

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ATTACHMENT 4
Below is the information you have submitted for the month of August 2022. We use your most recently submitted monthly report in our calculations.

Reporter Shane Taylor
Report Type Full
Urban Water Supplier(Number) Arroyo Grande City of (608) Public Water System ID(s) CA4010001
Reporting Month 0822
County/Counties San Luis Obispo
County Under Drought Declaration Yes
Water Shortage Contingency Plan 1
Water Shortage Level 2
Population 17963
Total Potable Water Production 196.4 AF
Commercial Agricultural Water 0 AF
Residential Use Percentage 80 %
CII Water 21.6 AF
Recycled Water 0 AF
Non-revenue Water AF
Estimated R-GPCD 91.94
Qualification
Emergency Response Section Revealed? Yes
State Water Resources Control Board Office of Research, Planning & Performance

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Item 8.j.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Jill McPeek, Capital Improvement Project Manager
SUBJECT: Consideration to Adopt a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the FCFA Station 1 Emergency Generator Replacement Project, PW 2021-09
DATE: September 27, 2022
SUMMARY OF ACTION:

Adoption of the Resolution by the required four-fifths vote will allow for the accelerated replacement of the emergency generator at the Five Cities Fire Authority (FCFA) Station

1. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no additional fiscal impacts from adoption of this Resolution. The FY 2021-22 and FY 2022-23 Capital Improvement Program (CIP) budgets included $680,018 ($46,780 General Fund, $318,738 Sales Tax Funds, and $314,500 of California Nuclear Power Preparedness (NPP) Program funding) for the subject project. The engineer’s construction cost estimate for the project is currently $646,453. FCFA staff will seek to secure the NPP funding upon completion of the construction documents and associated engineer’s construction cost estimate. It is anticipated that NPP funding will cover approximately 50% or $323,277. Staff time will be necessary to coordinate construction activities with the contractor and special inspectors.

RECOMMENDATION:
1) Receive and file an update of the emergency generator replacement project at the FCFA Station 1; and 2) Adopt a Resolution determining that there is a need to continue the emergency action for the replacement of the emergency generator in accordance with Public Contract Code Section 22050.

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Item 8.j.

City Council
Consideration to Adopt a Resolution Pursuant to Public Contract Code Section 22050 Determining to Continue Work Under Emergency Contracts for the FCFA Station 1 Emergency Generator Replacement Project, PW 2021-09 September 27, 2022

Page 2 ends

BACKGROUND:

At its regular meeting on September 13, 2022, the City Council adopted Resolution No. 5219 declaring an emergency and authorizing the accelerated replacement of the emergency generator at the FCFA Station 1 by eliminating the formal bid process.

Public Contract Code (PCC) Section 22050 allows a public agency, in the case of an emergency, to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without going through a formal bid process. PCC Section 22050 requires that after proceeding with an emergency project, the City Council shall review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the emergency action is terminated, and if it is determined that there is a need to continue the action, authorize continuation of the emergency action by a four-fifths vote. This item seeks such authorization.

ANALYSIS OF ISSUES:

As of September 20, 2022, the status of the project is as follows:
 The Council adopted a Resolution declaring an emergency and authorized the accelerated replacement of the emergency generator at the FCFA Station 1 without the competitive solicitation of bids.
 Comments on the 95% construction documents were forwarded to the design consultant to finalize the construction documents.

While a portable generator has been brought on site that allows for the opening of the apparatus bay doors and some lighting at the fire station, it does not provide power to the server room or the station alerting system, which are critical needs. Therefore, there remains an imminent danger to public health and safety as this situation may cause delay of emergency 9-1-1 services during the event of a power outage. Because of this, staff recommends that the emergency action be continued.

As required by statute, staff will continue to bring a similar item to the Council on subsequent agendas until the necessary emergency work has been completed or until the emergency action is terminated. Until this future item, staff will continue to work with the design consultant and selected contractor to complete the improvements on an accelerated basis.

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Item 8.j.

Page 3 ends

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Receive and file an update of the emergency generator replacement project at the FCFA Station 1; and adopt the proposed Resolution finding that there is a need to continue the emergency action for the replacement of the emergency generator in accordance with Public Contract Code Section 22050;

2. Receive and file an update of the emergency generator replacement project at the FCFA Station 1; do not adopt the proposed Resolution; and direct staff to prepare a Resolution to terminate the need to continue work under emergency action; or

3. Provide other direction to staff.

ADVANTAGES:

Adoption of the Resolution will allow for the accelerated replacement of the emergency generator at the FCFA Station 1 which will ensure power during the event of a power outage thereby providing rapid response time in the event of an emergency situation.

DISADVANTAGES:

No disadvantages are identified at this time.

ENVIRONMENTAL REVIEW:

No environmental review is needed to authorize the continuation of the emergency action.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Resolution

2. September 13, 2022 Staff Report and Attachment

Page 348 of 514 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DETERMINING A NEED TO

CONTINUE WORK UNDER EMERGENCY CONTRACTS
FOR THE FIVE CITIES FIRE AUTHORITY STATION 1

EMERGENCY GENERATOR REPLACEMENT PROJECT
WHEREAS, on September 13, 2022, pursuant to Public Contract Code (PCC) Section 22050, the City Council deemed it was is in the public interest to immediately authorize the expenditure of City funds needed to safeguard the health, safety and welfare and to proceed immediately with the replacement of the emergency generator at the Five Cities Fire Authority (FCFA) Station 1; and
WHEREAS, On September 13, 2022, the City Council deemed the immediate replacement of the emergency generator was necessary in order to protect the public health, safety and welfare and would not permit a delay resulting from a competitive solicitation for bids and that prompt action, including authorization to expend all funds required for such replacement without competitive bidding, was necessary to respond to the emergency; and
WHEREAS, on September 13, 2022, the City Council adopted Resolution No. 5219 declaring an emergency and authorizing the City Manager to enter into any contract or agreement in order to immediately replace the emergency generator; and WHEREAS, PCC Section 22050 requires that after proceeding with an emergency project, the City Council shall review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the emergency action is terminated; and
WHEREAS, if it is determined that there is a need to continue the emergency action, PCC Section 22050 requires a four-fifths vote to authorize the continuation of the emergency action.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that the emergency declared by the City Council on September 13, 2022 regarding replacement of the generator at FCFA Station 1 shall be deemed to continue.

BE IT FURTHER RESOLVED, that the local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council.

On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27 th day of September, 2022.

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RESOLUTION NO.

PAGE 2
___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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ATTACHMENT 2
Attachment 2 - September 13, 2022 Staff Report and Attachment Attachment 2 is available as links:
https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=3899 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=3900

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Item 8.k.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Accessory Dwelling Units and Adoption of a Resolution Approving an Accessory Dwelling Unit Fee Waiver Program
DATE: September 27, 2022
SUMMARY OF ACTION:

Adopting the Ordinance will amend regulations for the development of accessory dwelling units (ADU). Adopting the Resolution will establish a Fee Waiver Program for ADUs that are 500 square feet or less.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

SB 2 grant funding in the amount of $20,000 was obtained to offset costs associated with the amendments to the Accessory Dwelling Unit (ADU) regulations, including staffing hours, website development, and marketing materials. The implementation of the fee waiver program is anticipated to decrease revenue for the Community Development Department by as much as $18,000 annually. However, the lost revenue as a result of waiver building permit fees can be recouped through the use of funds from the City’s Inclusionary Housing Trust Fund.

RECOMMENDATION:

Adopt the Ordinance amending development regulations for ADUs and adopt a Resolution establishing the ADU Fee Waiver Program.

BACKGROUND:

The process to update the Ordinance began with a study session at the August 3, 2021 Planning Commission (PC) meeting. At the following PC meeting, staff presented amendments to the Ordinance developed in accordance with feedback obtained from the study session, and the PC recommended that Council adopt amendments to the Title 16 provisions regulating ADU development. The amendments were introduced to the City Council at its meeting on February 8, 2022 (Attachment 3). At that time, Council directed

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Item 8.k.

City Council
Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Accessory Dwelling Units and Adoption of a Resolution Approving an Accessory Dwelling Unit Fee Waiver Program September 27, 2022

Page 2 ends

staff to modify the draft Ordinance with regard to several aspects of the Ordinance. Staff modified the Ordinance accordingly and presented the changes to Council at a study session on July 26, 2022 (Attachment 4). Positive feedback from Council at the study session allowed staff to proceed to a recommendation hearing with the PC on August 16, 2022, at which PC recommended Council adopt the Ordinance amendments (Attachment 5). Staff introduced amendments to the ADU Ordinance and parameters of the proposed ADU Fee Waiver Program to Council on September 13, 2022 (Attachment 6). Council spoke in support of the draft Ordinance and Fee Waiver Program and introduced the Ordinance as proposed.

ANALYSIS OF ISSUES:

The Ordinance is now ready for adoption. The new regulations for the development of ADUs and JADUs will become effective thirty (30) days after adoption. The ADU Fee Waiver Program will become effective immediately upon adoption. The adopted Ordinance will be sent to the Department of Housing and Community Development for review and confirmation that it is in compliance with State law.

Staff performed additional research regarding the issue of whether the payment of prevailing wages was required on ADU projects for persons participating in the ADU Fee Waiver Program and confirmed that payment of prevailing wages is not required. This included discussions with the Santa Cruz City Attorney’s Office and additional research through the Department of Industrial Relations. The exemption from the prevailing wage requirement found in Labor Code Section 1720(c)(1) is applicable.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the Ordinance and ADU Fee Waiver Resolution as proposed;

2. Adopt the Ordinance and modify and adopt the ADU Fee Waiver Resolution;

3. Modify and reintroduce the Ordinance and direct that adoption of the Ordinance occur at a future meeting;

4. Provide other direction to staff.

ADVANTAGES:

Adoption of the Ordinance will regulate development of ADUs in a manner that is consistent with State law. An update to the Ordinance will also satisfy Housing Element Program A.2-1. The ADU Fee Waiver Program will incentivize development of affordable housing units, which is consistent with Housing Element Programs A.3-1 and A.3-3.

DISADVANTAGES:

None identified.

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Item 8.k.

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ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the project is statutorily exempt per Section 15282(h) of the Guidelines regarding projects involving the adoption of an ordinance regarding second units in a single-family or multifamily residential zone by a city to implement provisions of Government Code Section 65852.2.

PUBLIC NOTIFICATION AND COMMENTS:

A summary of the Ordinance was published in The Tribune on September 16, 2022, pursuant to State law. The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Ordinance

2. Proposed Resolution - ADU Fee Waiver Program

3. Staff Report and Minutes from the February 8, 2022 City Council Meeting

4. Staff Report and Minutes from the July 26, 2022 City Council Meeting

5. Staff Report and Minutes from the August 16, 2022 Planning Commission Meeting

6. Staff Report from the September 13, 2022 City Council Meeting

7. Draft Minutes from the September 13, 2022 City Council Meeting

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ATTACHMENT 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL ADOPTING
AMENDMENTS TO TITLE 16 OF THE ARROYO GRANDE

MUNICIPAL CODE (AGMC) REGARDING ACCESSORY
DWELLING UNITS; LOCATION- CITYWIDE
WHEREAS, Section 16.52.150 of the Arroyo Grande Municipal Code (AGMC) contains the City’s existing regulations for Accessory Dwelling Units (ADUs); and WHEREAS, AGMC Section 16.52.150 of the Arroyo Grande Municipal was last amended in 2017, after the State legislature had amended Government Code §65852.2 and also added Government Code §65852.22 to provide an option for Junior Accessory Dwelling Units (JADUs), however, the 2017 amendment to AGMC 16.52.150 did not include an option for JADUs at that time; and
WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills ("New ADU Laws") that, among other things, amended Government Code Section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and
WHEREAS, the New ADU Laws mandate that cities with accessory dwelling unit ordinances that are inconsistent with the State laws apply the State standards for ADU and JADU approval; and
WHEREAS, according to the State Department of Housing and Community Development website the New ADU Laws were adopted to promote the development of ADUs and JADUs, and include allowing ADUs and JADUs to be built concurrently with a single-family dwelling, opening areas where ADUs can be created to include all zoning districts that allow single-family and multifamily uses, modifying fees from utilities such as special districts and water corporations, limited exemptions or reductions in impact fees, and reduced parking requirements; and WHEREAS, the New ADU Laws took effect January 1, 2020, and because the City's ADU ordinance did not comply with the New ADU Laws, the City's ordinance became null and void on that date as a matter of law; and
WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and provide for JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and
WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values and personal privacy; and

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ORDINANCE NO.

PAGE 2
WHEREAS, on August 16, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council amending Section 16.52.150 of the Arroyo Grande Municipal Code; and
WHEREAS, the City Council of the City of Arroyo Grande has, after giving notice thereof as required by law, held a public hearing on September 13, 2022, concerning proposed amendments to AGMC Section 16.52.150; and
WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on September 13, 2022 introduced this Ordinance to amend Section

16.52.150 of the Arroyo Grande Municipal Code; and
WHEREAS, the City Council has carefully considered all pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:

SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference.

SECTION 2. Section 16.52.150 of the Arroyo Grande Municipal Code is hereby amended in its entirety to read as follows:

A. Definitions/Prohibited Units.

1. Accessory Dwelling Unit (ADU): An attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation and shall be located on the same parcel as the primary dwelling or multi-family development. An ADU also includes an efficiency unit and manufactured home as provided in Government Code Section 65852.2(j). An ADU may serve as a rental unit for more than 30 days or be occupied by a person or persons including, but not limited to family members, guests, or caretakers.

2. Junior Accessory Dwelling Unit (JADU): A residential dwelling unit, as defined in Government Code Section 65852.22, that is no more than 500 square feet in size and contained entirely within an existing or proposed single-family structure. A JADU shall include an efficiency kitchen, and may include separate sanitation facilities or share sanitation facilities with the existing dwelling. A JADU may serve as a rental unit for more than 30 days.

Owner-occupancy of either primary dwelling or JADU is required by state law.

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ORDINANCE NO.

PAGE 3

3. Mobile homes, as defined in Section 18008 of the Health and Safety Code, recreational vehicles, trailers, or similar units, shall not be allowed as ADUs.

4. Factory-built housing as defined by California Health and Safety Code Section 19971 shall be allowed as ADUs.

B. Where Permitted/Establishment.

1. ADUs are permitted in all zoning districts allowing single-family or multifamily use on lots developed with existing or proposed dwellings.

2. An ADU may be established by the following methods:
a. Attached to, or located within, an existing or proposed primary dwelling.
b. A new detached structure, or located within or attached to an accessory structure, including detached garages or similar structures. c. Conversion of permitted existing attached or detached accessory structures, including garages, storage areas, or similar structures. d. Reconstruction of a permitted existing structure or living area that is proposed to be converted to an ADU, or a portion thereof, in the same location and to the same dimensions and setbacks as the existing structure.

3. A Junior Accessory Dwelling Unit (JADU) may be established within the space of the primary dwelling, including an attached garage or attached accessory structure.

4. A JADU may be established within the space of the primary dwelling in combination with the construction of one detached, new construction ADU not exceeding 850 square-feet and a height of 16 feet with four-foot side and rear setbacks.

5. An existing unit may be converted to an ADU, in conjunction with the construction of a new primary dwelling unit built, if all applicable zoning requirements are met.

6. ADUs shall be permitted on lots developed with existing multi-family dwellings subject to the following provisions:
a. The property shall be developed with an existing multi-family structure(s).

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PAGE 4
b. A minimum of one ADU may be constructed, or up to 25 percent of the existing unit count, within non-livable space, including, but not limited to, storage rooms, passageways, attics, basements, or closets. c. The construction of two detached ADUs with a maximum size of 850 square feet, or 1,000 square feet with more than one bedroom, shall be permitted in addition to ADUs created within non-livable space, subject to a maximum height of 16 feet, and four-foot side and rear setbacks. These ADUs may be attached to each other, but must be detached from the existing multi-family dwelling units. d. Existing livable space of multi-family dwelling units shall not be converted to ADUs.

C. Permit Requirements:

1. The City shall ministerially review and act on a building permit application for an ADU or JADU within 60 days after receiving the application. An ADU or JADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. Occupancy for an ADU or JADU shall not be issued before occupancy is granted for the primary dwelling.

2. Unless otherwise preempted by state law, the design and construction of all newly constructed ADUs and JADUs shall comply with all applicable building, housing, zoning and site development standards of the Arroyo Grande Development Code, including but not limited to standards regarding setbacks, floor area ratio standards, height, lot coverage, and in the surrounding neighborhood that are listed in the California Register of Historic Places. Applicants shall also comply with all applicable fee and charge requirements, and other applicable zoning requirements.

3. Pursuant to Government Code Section 65852.2(e) (2), the City shall not require the correction of nonconforming zoning conditions as a condition for ministerial approval.

D. Development Standards.

1. ADU Type, Location & Size.
a. Attached Unit: An ADU attached to an existing primary dwelling shall have a minimum size of 150 square feet and shall not exceed 50 percent of the total existing or proposed living area of the primary dwelling, except as provided by the By-Right Provision below.

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ORDINANCE NO.

PAGE 5
b. Detached Unit: An ADU structurally independent and detached from the existing primary dwelling shall have a minimum size of 150 square feet and shall not exceed 1,200 square feet.
c. Conversion of Existing Structure: An ADU constructed within the footprint of an existing dwelling or attached or detached structure shall not be subject to a maximum square-footage of living area. Expansion of an existing structure proposed to be converted to an ADU is limited to 150 square feet for purposes of accommodating ingress and egress. d. By-Right Provision: An attached or detached ADU with a maximum size of 850 square-feet or 1,000 square-foot with more than one bedroom shall be permitted in any circumstance subject to a maximum height of 16 feet, four-foot side and rear setbacks, and compliance with the front setback requirement of the underlying zoning district, and all building codes. No minimum lot size or lot coverage requirement shall apply.
e. ADUs shall have independent exterior access from the primary dwelling.
f. Maximum Slope. The building site upon which the accessory dwelling unit will be constructed shall not have an average slope in excess of twenty (20) percent. A topographic map and slope analysis, as recommended by the community development director, shall be stamped and signed by either a registered civil engineer, registered architect, or registered landscape architect. Average slope is defined as follows:

S = I x L x 100
A x 43,560
Where
S = average natural slope, in percent.

I = interval, in feet, of the contour lines.

L = the sum, in feet, of the length of the contour lines, at selected contour interval "I".

A = the total area, in acres, of the site.
g. ADUs shall not be required to provide fire sprinklers if they are not required for the primary residence.

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ORDINANCE NO.

PAGE 6

2. JADU Location and Size.
a. A JADU shall be constructed entirely within an existing or proposed primary dwelling and shall not exceed 500 square-feet.
b. JADUs shall have an independent exterior entrance from the primary dwelling, but may also include shared access between the two units.

3. Required Setbacks.
a. An attached or detached ADU not exceeding 850 square feet or 1,000 square feet with more than one bedroom, and a height no greater than 16 feet shall provide a minimum setback of four feet from the side and rear property lines and comply with the front setback for the zoning district. ADUs exceeding the maximum square footage or height specified in this provision shall be subject to compliance with setbacks of the underlying zoning district.
b. Cornices and eaves may project into the required yards by no more than one foot.
c. ADUs shall comply with the front yard setback and be located on the rear portion of a parcel unless no feasible alternative exists. Feasibility is determined whether a by-right ADU can physically be constructed behind the primary dwelling due to the presence of maximum slope, other structures, existing easements, or drainage features. d. When an ADU is created within an existing structure, the side and rear setbacks must be sufficient for fire safety as determined by the Building Official and Fire Department.
e. No setback shall be required for an existing garage or accessory structure converted, or portion thereof, to an ADU and no setback shall be required for a new structure constructed in the same location and same dimensions as an existing structure.
f. An ADU constructed above an existing garage or dwelling unit, exceeding 16-feet in height, shall meet the side and rear setbacks of the underlying zoning district.
g. Roof top decks shall not be permitted on any detached ADU.

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ORDINANCE NO.

PAGE 7
h. Staircases serving an ADU shall provide a minimum setback of four feet from the side and rear property lines subject to approval by the Building Official and Fire Department.

4. Height and Maximum Lot Coverage.

ADUs exceeding 850 square feet or 1,000 square feet with more than one bedroom, and/or a height of 16 feet shall comply with the height, floor-area ratio, and maximum lot coverage of the underlying zoning district.

5. Parking.
a. One additional off-street parking space shall be required per unit; with exceptions per subsection g, below.
b. No parking space shall be required for an ADU or JADU established within an existing structure.
c. Parking spaces shall be a minimum dimension of 9 foot by 18 foot except as specified below.
d. Parking spaces may be located in any configuration on the same lot as the ADU, including, but not limited to, as covered spaces, uncovered spaces, tandem spaces, or by the use of mechanical automobile parking lifts.
e. Required off-street parking shall be permitted in front, side, and rear setback areas subject to the following:
i. Parking may be located on an existing driveway but shall not block sidewalk access or encroach into the public right-of-way. ii. Parking spaces location wholly or partially within a side yard must have a minimum clear space width of 10-feet. Vehicles shall not block exterior windows or doors of a dwelling or access to utility boxes or meters.
iii. Vehicles must be parked on an acceptable surface of concrete, asphalt, gravel, brick, permeable paver or other stable, dust-free surface.
iv. No more than 50% of a front yard shall be dedicated to vehicle parking.
v. No parking shall be allowed in front yard landscaping areas.

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ORDINANCE NO.

PAGE 8
vi. Access to on-site parking spaces shall be provided via an approved driveway location only.
f. When a garage, carport, or covered parking structure that provides the required spaces for the primary dwelling is demolished or converted in conjunction with the construction of an ADU, no replacement parking shall be required.
g. Parking Exemption: As required by Government Code Section 65852.2(d), parking space for an ADU shall not be required in any of the following instances:
i. The ADU is located within one-half mile walking distance of public transit.
ii. The ADU is located within an architecturally and historically significant historic district.
iii. The ADU is located within an existing or proposed primary residence or an existing accessory structure.
iv. When on-street parking permits are required but not offered to the occupant of the ADU.
v. When there is a car share vehicle located within one block of the ADU.

6. Objective Design Standards
a. The colors of the exterior walls, roof, eaves, and windows and doors of a new, detached ADUs must match the appearance and architectural design of those of the primary dwelling.
b. If a garage is converted to an ADU, the garage door opening shall be replaced with exterior wall coverings, or residential windows and doors, to match the existing exterior garage wall covering and detailing. c. ADUs created under the By-Right Provisions of this Section are exempt from the Objective Design Standards, as are ADUs created through the use of pre-approved plans and factory-built housing that meet the standards of a By-Right unit.
d. Where ADUs are to be located within the front yard setback in accordance with Section D.3.c, the Objective Design Standards shall apply.

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ORDINANCE NO.

PAGE 9
e. ADUs located in the D-2.4 Historic Character Overlay District shall comply with the Objective Design Standards.
a. Second floor living area shall be setback 5 feet from the ground floor footprint.
b. Window sashes and doorframes shall be made of wood or vinyl simulating the appearance of wood. Unfinished aluminum is not allowed.
c. New or replacement doors shall be wood or an approved substitute material that simulates the appearance of original materials. d. The use of fluorescent “neon”, “day-glo”, or bright primary colors as the predominant shade on building facades is not permitted.

7. Impact Fees & Utilities.
a. An ADU under 750 square feet shall not be charged development impact fees. An ADU equal to or greater than 750 square feet may be charged development impact fees. These development impact fees shall be proportional to the square footage of the main dwelling and calculated using the ADU square footage.
b. ADUs and JADUs shall comply with water and sewer requirements as determined by the Public Works Department.
c. The City shall not require a new or separate utility connection or impose a related connection fee or capacity charge for ADUs or JADUs that are contained within an existing residence or accessory structure. Pursuant to Government Code Section 65852.2(f)(5) an ADU not built within the existing space of a single family house or accessory structure may be required to obtain a new or separate utility connection as determined by the Public Works Department and may be subject to connection fees and capacity charges based on either its square footage as a proportion to the square footage of the primary unit, or the number of its drainage fixtures unit values, as determined by the Public Works Department.

E. Conditions.

1. An ADU/JADU shall not be sold or otherwise conveyed separate from the primary residence.

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ORDINANCE NO.

PAGE 10

2. An ADU/JADU may serve as a rental unit or be occupied by family members, guests, or in-home health care providers, and others at no cost.

3. Neither the ADU/JADU nor the primary dwelling unit shall be rented for a term of less than 31 days. ADUs on multi-family properties shall be subject to this provision, except the restriction shall not apply to existing multifamily units

4. Owner-occupancy shall be required for a property developed with a JADU.

The owner may reside in either the primary dwelling or the JADU.

The property owner shall record a covenant, approved as to form by the City Attorney, declaring compliance with each and every condition referenced in this section.

SECTION 3. This Ordinance is exempt from the California Environmental Quality Act in accordance State CEQA Guidelines, Article 18: Statutory Exemptions, Section 15282(h).This section of CEQA provides a statutory exemption for “the adoption of an ordinance regarding second units [accessory dwelling units] in a single-family or multifamily residential zone by a city or county to implement the provisions of Sections 65852.1 and 65852.2 of Government Code as set forth in Section 21080.17 of the Public Resources Code.” The City Clerk shall file a Notice of Exemption from CEQA review in accordance with CEQA Guidelines.

SECTION 4. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance.

SECTION 5. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage.

SECTION 6. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit:

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ORDINANCE NO.

PAGE 11
AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this 27th day of September, 2022.

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ORDINANCE NO.

PAGE 12
___________________________________

CARON RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE PROVIDING FOR AN ACCESSORY

DWELLING UNIT FEE WAIVER PROGRAM
WHEREAS, Section 16.52.150 of the Arroyo Grande Municipal Code (AGMC) contains the City’s regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units (collectively, “ADUs”) consistent with the requirements of Government Code Sections 65852.2 and 65852.22, and ADUs present an opportunity to develop more affordable housing in the City; and
WHEREAS, the City Council of the City of Arroyo Grande wishes to further the policies, goals and programs of the Housing Element of the City's General Plan and to help facilitate the development of affordable housing within the City by creating an ADU Fee Waiver Program under which building permit fees and utility connection fees can be waived for ADUs that are 500 square feet or less and the property owners agree to rent the ADU to either low income or very low income households; and WHEREAS, the City Council finds that providing a variety of housing options to workers of all income levels is socially and economically beneficial to the City and its residents; and
WHEREAS, to the extent that building permit fees and utility connection fees present a barrier to the development of affordable ADUs, the ADU Fee Waiver Program will provide an incentive to their construction and making them available to low-income or very lowincome households.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:

SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. ADU FEE WAIVER PROGRAM.

City Staff is hereby authorized to implement an ADU Fee Waiver Program. Building permit fees and utility connection fees for Accessory Dwelling Units of 500 square feet or less shall be waived when:

A. The property owner agrees to rent the ADU to either a low-income household for a period of ten (10) years, or a very low-income household for a period of seven (7) years. Prior to receiving a building permit, the ADU owners shall execute and record an “Accessory Dwelling Unit Affordable Housing Declaration of Covenants and Land Use Restrictions - Fee Waivers” in a form approved by the City Attorney.

B. In implementing this ADU Fee Waiver program, the City shall rely on affordable

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RESOLUTION NO.

PAGE 2
rental limits established by San Luis Obispo County and published each month.

C. The Accessory Dwelling Unit Affordable Housing Declaration of Covenants and Land Use Restrictions - Fee Waivers, shall provide that the property owner shall annually provide the City with evidence that rents collected comply with affordable limits.

D. Money from the City or Arroyo Grande Inclusionary Housing Affordable Housing Trust Fund shall be used to offset and recoup the revenue that otherwise would have been due to the City for building and connection fees as a result of the ADU Fee Waiver Program. Staff shall provide an annual update to the Council on the status of the Program and impacts to the Trust Fund.

SECTION 3. If any section, subsection, sentence, clause, phrase or provision of this Resolution or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of any other provision or applications, and to this end the provisions of this Resolution are declared to be severable. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or provisions thereof be declared invalid or unconstitutional.

SECTION 4. This Resolution shall be effective immediately upon its adoption.

On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27th day of September, 2022.

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RESOLUTION NO.

PAGE 3
__________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
_________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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ATTACHMENT 3
Attachment 3 – Staff Report and Minutes from the February 8, 2022 City Council Meeting are available as links:

ADU Introduction Staff Report
Minutes from the February 8, 2022 City Council Meeting

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ATTACHMENT 4
Attachment 4 – Staff Report and Minutes from the July 26, 2022 City Council Meeting are available as links:

ADU Study Session Staff Report
Minutes from the July 26, 2022 City Council Meeting

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ATTACHMENT 5
Attachment 5 – Staff Report and Minutes from the August 16, 2022 Planning Commission Meeting are available as links:

ADU Ordinance Update Staff Report
Minutes from the August 16, 2022 PC Meeting

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ATTACHMENT 6
Attachment 6 – Staff Report from the September 13, 2022 City Council Meeting is available as a link:

Introduction of ADU Ordinance Staff Report

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ATTACHMENT 7
1 ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE DISSOLVED ARROYO

GRANDE REDEVELOPMENT AGENCY
September 13, 2022, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council/Board Members Present: Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair George, Council/Board
Member Paulding, Council/Board Member
Storton
Council/Board Members Absent: Council/Board Member Barneich Staff Present: City Clerk Jessica Matson, City Attorney Timothy Carmel, City Manager Whitney
McDonald, Assistant City Manager/Public
Works Director Bill Robeson, Administrative
Services Director Nicole Valentine,
Community Development Director Brian
Pedrotti, Chief of Police Michael Martinez,
Planning Manager Andrew Perez, Associate
Planner Patrick Holub, Contract Building
Official Mark Meyers
Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M.

Brown Act, this meeting was held by teleconference.
_____________________________________________________________________

1. CALL TO ORDER
Mayor/Chair Ray Russom called the Regular City Council/Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency Meeting to order at 6:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

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ATTACHMENT 7
2 4. FLAG SALUTE
Felix Esparza, Latino Outreach Council, led the flag salute.

5. AGENDA REVIEW
Mayor/Chair Ray Russom noted that Item 9.b. will be heard before 9.a. and 11.a., and Council Communications will be heard before the Public Hearing items.

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
Moved by Mayor/Chair Ray Russom
Seconded by Council/Board Member Storton
AYES (4): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair George, Council/Board Member Paulding, and Council/Board Member Storton
ABSENT (1): Council/Board Member Barneich
Passed (4 to 0)

6. SPECIAL PRESENTATIONS

6.a Update Regarding Countywide COVID-19 Efforts
City Manager McDonald provided a brief update on COVID-19 including available booster vaccines and testing sites.

Mayor/Chair Ray Russom invited public comment. No public comments were received.

No action was taken on this item.

6.b City Manager Communications
City Manager McDonald provided information regarding the City's summer concert series, the Elm Street Inclusive Playground groundbreaking event; and the first Joint City Council meeting regarding the Central Coast Blue Project.

Assistant City Manager/Public Works Director Robeson provided information regarding awards received for the Bridge Street Bridge Rehabilitation Project.

Mayor/Chair Ray Russom invited public comment. No public comments were received.

No action was taken on this item.

Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.

6.c Honorary Proclamation Recognizing September 15-October 15, 2022 as "National Hispanic Heritage Month"

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ATTACHMENT 7
3 Mayor/Chair Ray Russom read the Honorary Proclamation recognizing September 15 - October 15, 2022 as "National Hispanic Heritage Month." Felix Esparza, Latino Outreach Council, accepted the proclamation. The Latino Outreach Council and Mexican Consulate presented a Certificate of Recognition to the Council for highlighting the contributions made by the Latino and Mexican community in the City of Arroyo Grande and enhancing and connecting the diverse and multi-racial and multi-cultural mosaic of cultures during Hispanic Heritage Month.

Mayor/Chair Ray Russom invited public comment. No public comments were received.

No action was taken on this item.

6.d Introduction of Police Commander Culver
Police Chief Martinez introduced Police Commander Culver, and highlighted his educational and professional background.

6.e Update on Active Shooter Drill
Police Commander Culver provided information regarding the recent multi-jurisdictional Active Shooter Drill and responded to questions from Council/Board.

Mayor/Chair Ray Russom invited public comment. Speaking from the public was Ben Franco and Rachelle Krelle. No further public comments were received.

No action was taken on this item.

7. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor/Chair Ray Russom invited public comment. Speaking from the public was Jeff Edwards. No further public comments were received.

8. CONSENT AGENDA
Mayor/Chair Ray Russom asked the Council/Board if there were any questions or any items to be pulled from the consent agenda for further discussion.

Staff responded to Council questions regarding Item 8.j.

Mayor/Chair Ray Russom invited public comment. No public comments were received.

Moved by Council/Board Member Storton
Seconded by Council/Board Member Paulding
Approve Consent Agenda Items 8.a. through 8.m., with the recommended courses of action.

AYES (4): Mayor/Chair Ray Russom, Mayor Pro Tem/Vice Chair George, Council/Board Member Paulding, and Council/Board Member Storton
ABSENT (1): Council/Board Member Barneich
Passed (4 to 0)

8.a Consideration of Cash Disbursement Ratification

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ATTACHMENT 7
4 Ratified the listing of cash disbursements for the period of August 1 through August 15, 2022.

8.b Consideration of Statement of Investment Deposits
Received and filed the attached report listing investment deposits of the City of Arroyo Grande as of July 31, 2022, as required by Government Code Section 53646(b).

8.c Consideration of Adoption of Resolution Approving the Last and Final Recognized Obligation Payment Schedule for the Successor Agency to the Arroyo Grande Redevelopment Agency
Adopted a Resolution entitled: "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT

AGENCY APPROVING THE LAST & FINAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR FISCAL YEARS 2023-38 AND APPROVING CERTAIN RELATED ACTIVITIES".

8.d Consideration of Approval of Minutes
Approved the minutes of the Regular City Council Meeting of August 23, 2022, as submitted.

8.e Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic
Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY RELATED TO THE CORONAVIRUS (COVID-19) PANDEMIC".

8.f Consideration of Cancellation of November 8, 2022 City Council Meeting Cancelled the regularly scheduled Council meeting of November 8, 2022.

8.g Consideration of Authorizing the City Attorney to Amend the Affordable Housing Agreement for 252 S. Courtland Street
Authorized the City Attorney to amend the Agreement allowing the property owner to sell the subject property to an eligible, moderate income household.

8.h Consideration of a Resolution Approving a Grant Agreement from the Office of Traffic Safety for Traffic Records Improvement and Approval of the Purchase of the Crossroads Traffic Collision Reporting and Electronic Citation Systems 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AND AUTHORIZING THE CHIEF OF POLICE TO

EXECUTE AN AGREEMENT WITH THE CALIFORNIA OFFICE OF TRAFFIC SAFETY TO

ACCEPT GRANT FUNDING FOR TRAFFIC RECORDS IMPROVEMENT PROJECT AND TO APPROPRIATE THE FUNDING FOR THE PROGRAM ACTIVITIES"; 2) Approved a Budget Amendment Request for FY 2022-23 in the amount of $109,000 to account for the OTS grant revenue and the expenditures for the new reporting and citation systems, and 3) Approved the sole source purchase of the Crossroads traffic collision reporting and electronic citation software programs.

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ATTACHMENT 7
5 8.i Consideration of a Resolution Approving a Grant Agreement with the Office of Traffic Safety for Traffic/DUI Enforcement
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AND AUTHORIZING THE CHIEF OF POLICE TO

EXECUTE AN AGREEMENT WITH THE CALIFORNIA OFFICE OF TRAFFIC SAFETY TO

ACCEPT GRANT FUNDING FOR TRAFFIC SAFETY PROGRAMS AND TO APPROPRIATE THE FUNDING FOR THE PROGRAM ACTIVITIES"; and 2) Approved a Budget Amendment Request for FY 2022-23 in the amount of $58,000 to account for the additional revenue and expenditures related to the grant.

8.j Consider Adoption of a Resolution Pursuant to Public Contract Code (PCC) Section 20168 and Authorizing Contracting Without a Competitive Solicitation for Bids Pursuant to PCC Section 22050 for FCFA Station 1 Emergency Generator Replacement 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING AN EMERGENCY AND AUTHORIZING THE IMMEDIATE

EXPENDITURE OF FUNDS TO REPLACE THE EMERGENCY GENERATOR AT THE FIVE CITIES FIRE AUTHORITY STATION 1"; and 2) Authorized the City Manager, or designee, to execute a contract with a qualified contractor for construction of the project.

8.k Consideration of Acceptance of the 2021 Street Repairs Project, PW 2021-01 1) Accepted the project improvements as constructed by Ferravanti Grading & Paving in accordance with the plans and specifications for the 2021 Street Repairs Project, PW 2021-01; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of retention, thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed.

8.l Consideration of Resolution Authorizing Refund of Planning Commission Appeal Fees to the Appellants of Vacation Rental Permits Approved for 263-D Spruce Street and 1170 Linda Drive
Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE REFUND OF APPEAL FEES FOR THE APPEALS OF THE SHORT-TERM RENTALS AT 263-D SPRUCE STREET AND 1170 LINDA DRIVE".

8.m Consideration of a Grant Agreement with Smart Share Housing Solutions for Public Outreach, Education, and Project Management to Facilitate Development of Accessory Dwelling Units in Arroyo Grande
Reviewed the proposal from SSHS and authorize the City Manager to execute an Agreement between the City and SSHS for public outreach, education, and project management and demonstration to facilitate the development of ADUs in the City.

9. PUBLIC HEARINGS
Mayor/Chair Ray Russom noted that due to conflicts of interest, Council previously drew straws to see who would hear each item.

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ATTACHMENT 7
6 9.a Discuss and Consider Introduction of Ordinance Amending Title 16 of Arroyo Grande Municipal Code Regarding Accessory Dwelling Units; Development Code Amendment 20-001 and Consideration of a Fee Waiver Program for Certain Accessory Dwelling Units Mayor Ray Russom called for a brief break at 8:54 p.m. The Council reconvened at 9:04 p.m.

This item was heard after Item 9.b.

Mayor Ray Russom declared a conflict of interest due to owning an ADU and left the meeting.

Mayor Pro Tem George presided over the meeting.

Planning Manager Perez presented the staff report and recommended that Council introduce the Ordinance amending the regulations for accessory dwelling units and provide feedback about the details of the proposed fee waiver program. Staff responded to questions.

Mayor Pro Tem George opened the public hearing. Speaking from the public was Ben Franco.

Upon hearing no further public comments, Mayor Pro Tem George closed the public hearing and directed staff to follow-up with the commenter.

Moved by Mayor Pro Tem/Vice Chair George
Seconded by Council/Board Member Paulding
Introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL ADOPTING AMENDMENTS TO TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE (AGMC) REGARDING ACCESSORY DWELLING UNITS; LOCATION- CITYWIDE". City Attorney Carmel read the full title of the Ordinance into the record.

AYES (3): Mayor Pro Tem/Vice Chair George, Council/Board Member Paulding, and Council/Board Member Storton
ABSENT (2): Mayor/Chair Ray Russom, and Council/Board Member Barneich Passed (3 to 0)

9.b Introduction of Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Short Term Rentals (Vacation Rentals and Homestays); Development Code Amendment 22-002
This item was heard out of order.

Mayor Pro Tem George declared a conflict of interest due to owning a short-term rental and left the meeting.

Community Development Director Pedrotti introduced the item. Associate Planner Holub presented the item and recommended that the Council introduce an Ordinance amending Title 16 of the AGMC regarding short-term rentals and responded to questions.

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ATTACHMENT 7
7 hearing. Mayor Ray Russom responded to questions from the public. City Attorney Carmel provided clarification regarding references to properties being "grandfathered in." Staff responded to questions from Council.

Moved by Mayor/Chair Ray Russom
Seconded by Council/Board Member Paulding
To modify the Ordinance as follows: a cap of 90 vacation rentals with a 6-month lookback; a short term rental buffer of 500 feet as recommended by the Planning Commission; language for revocation triggers; "unresponsive emergency contact" defined as a contact who does not respond 3 times in a 12-month rolling period and would initiate a revocation hearing; language that 2 citations or arrests in a 12-month rolling period would initiate a revocation hearing; language in outreach letters regarding voluntary relinquishment of permits for existing permit holders; language that TOT must be paid every 6 months; modify language that states the 2- space parking requirement only applies to vacation rentals; the wording "revocation proceeding" be changed to "revocation hearing;" definitions are approved as presented by staff; and to continue the introduction of an Ordinance amending Title 16 of the AGMC regarding short term rentals to a date certain of September 27, 2022.

AYES (3): Mayor/Chair Ray Russom, Council/Board Member Paulding, and Council/Board Member Storton
ABSENT (2): Mayor Pro Tem/Vice Chair George, and Council/Board Member Barneich Passed (3 to 0)

10. OLD BUSINESS
None.

11. NEW BUSINESS

11.a Discussion of Draft Ordinance Addressing Tiny Homes on Wheels This item was heard after item 9.a. Mayor Ray Russom previously declared a conflict of interest due to owning an ADU and left the meeting.

Planning Manager Perez presented the report and staff responded to questions from Council.

Mayor Pro Tem George invited public comment. Speaking from the public was Joe Pollon. No further public comments were received.

Building Official Meyers provided more information regarding tiny home accreditation organizations permitted. Mayor Pro Tem George directed staff to research accreditation options.

Moved by Council/Board Member Paulding
Seconded by Council/Board Member Storton
Approve staff's recommendation with the modification to add language to paragraph B3 to state "in addition to the RVIA any other HCD approved association", and to ban roof top decks.

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ATTACHMENT 7
8 AYES (3): Mayor Pro Tem/Vice Chair George, Council/Board Member Paulding, and Council/Board Member Storton
ABSENT (2): Mayor/Chair Ray Russom, and Council/Board Member Barneich Passed (3 to 0)

12. COUNCIL COMMUNICATIONS
This item was heard out of order.

Mayor/Chair Ray Russom stated that she will be unable to attend the Mayor's meeting and asked if any other Council Member would be available to attend. Council members Storton, Paulding and George stated they would not be able to attend.

13. CLOSED SESSION
None.

14. ADJOURNMENT
There being no further business to come before the City Council/Board of Directors, Mayor Pro Tem George adjourned the meeting at 9:47 p.m.
_________________________
Caren Ray Russom, Mayor/Chair
_________________________
Jessica Matson, City Clerk/Secretary

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Item 8.l.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Consideration of Temporary Use Permit 22-011 Authorizing the Temporary Closure of Branch Street for Halloween in the Village on Monday, October 31, 2022; Applicant – Krista Bandy
DATE: September 27, 2022
SUMMARY OF ACTION:

Approval of the Temporary Use Permit will authorize use of Branch Street for Halloween in the Village and will direct staff to implement safety measures, including closure of East and West Branch Streets between Traffic Way and Mason Street, establish no parking zones, and detour automobile traffic on Monday, October 31, 2022.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Direct equipment and staffing costs to facilitate the safety measures are estimated at $5,000. This includes $2,735 from the Public Works Department estimated as follows:
 $1,500 for Public Works staff time and materials;
 $850 for water barricade rentals; and
 $385 for contractor to fill water barricades.

The remaining $2,265 includes Police Department time and material costs as follows:
(2) Officers on foot patrol / at Police Booth
(2) Officers as a Reaction Team
(1) Motor Officer for traffic enforcement
Although the City will incur these costs initially, the proposed Resolution includes a condition requiring the applicant to reimburse the City for all costs associated with closing and securing Branch Street for the event.

RECOMMENDATION:

Adopt a Resolution approving Temporary Use Permit 22-011, authorizing the closure of East and West Branch Streets to accommodate Halloween in the Village.

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Item 8.l.

City Council
Consideration of Temporary Use Permit 22-011 Authorizing the Temporary Closure of Branch Street for Halloween in the Village on Monday, October 31, 2022; Applicant – Krista Bandy
September 27, 2022

Page 2 ends

BACKGROUND:

Halloween in the Village started informally as an event, but grew in popularity until 2007, when the City required the organizer to formally permit the event and implement measures to protect the large crowds, such as closing West Branch to traffic to enable families to safely cross the street. Changes occurring within the event sponsor and the COVID pandemic resulted in no formal Halloween in the Village event occurring in 2020 and 2021. New event organizers have now applied for a permit to resume the annual Halloween in the Village celebration. The event will provide children a safe daytime environment to trick or treat and to highlight the businesses in the Village through the opportunity for merchants to pass out treats.

ANALYSIS OF ISSUES:

The purpose of the Temporary Use Permit, which authorizes street closures and imposes safety measures and conditions, is to increase pedestrian safety by reducing pedestrian and vehicle interaction related to the crowds of children and parents who congregate and circulate on both sides of the four-block core of the Village during the event. Prior to implementing the street closure, large numbers of participants filled the sidewalks at many points and crossed at uncontrolled intersections with the help of crossing guards. Full street closure and safety measures were successfully implemented over the previous nine (9) events, between 2011 and 2019, with no incidents observed or reported.

The closure of West and East Branch Street from Traffic Way to Mason Street will be implemented through the following measures:
 The placement of “No Parking” signs mounted on delineators 48 hours in advance of the event on West and East Branch Streets;
 No parking for a small section at the corner of Mason Street and Nelson Street (to allow turning movement for commercial trucks);
 Closure of intersections or major driveways onto East and West Branch Street, including Bridge Street, the Car Corral, and Nevada Street;  Implementation of a detour which routes automobile and truck traffic onto Traffic Way, Nelson Street and Mason Street; and
 Delineating a widened turning lane on East Branch Street at Mason Street for commercial trucks
Staff Advisory Committee (SAC)
The SAC discussed the project at its meeting on August 25, 2022. The primary topic of discussion was the method by which to secure Branch Street from vehicles at Bridge, and Nevada Streets, as well as the driveways throughout the event area. Water barricades will be installed at each of these intersections to prevent motorists from entering the event area. The SAC recommends approval of the application with conditions of approval included in the draft Resolution.

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Item 8.l.

Page 3 ends

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the Resolution approving Temporary Use Permit 22-011

2. Modify and adopt the Resolution approving Temporary Use Permit 22-011;

3. Do not adopt the Resolution, or

4. Provide other direction to staff.

ADVANTAGES:

Full street closure provides a safer environment for participating children and allows children to safely cross the street at any location, thus helping the event to operate more efficiently.

DISADVANTAGES:
“No Parking” restrictions and the closure of sections of Branch Street will have an impact on traffic congestion and parking. Motorists not familiar with the event will have to use detours to get to their destinations, which may increase travel time.

ENVIRONMENTAL REVIEW:

In accordance with the California Environmental Quality Act (CEQA), it has been determined that this project is categorically exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Resolution

2. Event Map

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
CASE NO. 22-011 AUTHORIZING “HALLOWEEN IN THE VILLAGE”
ON MONDAY, OCTOBER 31, 2022 AND DIRECTING STAFF TO

IMPLEMENT RELATED SAFETY MEASURES INCLUDING NO
PARKING ZONES AND STREET CLOSURES; APPLIED FOR BY

KRISTA BANDY
WHEREAS, the applicant applied for a Temporary Use Permit for the Halloween in the Village event (Event) which, amongst other things, helped establish conditions to ensure the safety of the event; and
WHEREAS, the implementation of safety measures including no parking zones and street closures will help to facilitate a safe Halloween for all individuals participating in the event and traveling through the Village area; and
WHEREAS, the Arroyo Grande Municipal Code (AGMC) provides for the issuance of Temporary Use Permits for events such as “Halloween in the Village,” specifically AGMC Section 10.16.050 authorizes the City Council to restrict parking on any street, and California Vehicle Code Section 21101(e) authorizes the closure of streets for parades and local special events.

WHEREAS, the City Council finds, after due study, the following circumstances exist:

FINDINGS FOR APPROVAL – TEMPORARY USE PERMIT

1. The operation of the requested use at the locations proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety or general welfare due to the use of traffic safety equipment and dedicated local law enforcement personnel.

2. The City streets to be used are adequate in size and shape to accommodate the trick-or-treat event without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the Event.

3. The proposed site is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the Event will or could reasonably be expected to generate.

4. Adequate temporary parking to accommodate vehicular traffic to be generated by the Event is available throughout the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve Temporary Use Permit 22-011 authorizing the following actions, with the above

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RESOLUTION NO.

PAGE 2
findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference:

1. The establishment of a “No Parking” zone on East and West Branch Streets between Traffic Way and Mason Street between the hours of 2:00PM and 6:00PM;

2. “No Parking” at the corner of Mason Street and Nelson Street (to allow turning movement for commercial trucks) between the hours of 2:00PM and 6:00PM;

3. The closure of West and East Branch Street from Traffic Way to Mason Street between the hours of 2:00PM and 6:00PM;

4. The closure of intersections or major driveways onto East and West Branch Street including Bridge Street, the Car Corral, and Nevada Street between the hours of 2:00PM and 6:00PM;

5. The implementation of a detour which routes automobile and truck traffic onto Traffic Way, Nelson Street and Mason Street and delineating a widened turning lane on East Branch Street at Mason Street for commercial trucks between the hours of 2:00PM and 6:00PM.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande does hereby approve Temporary Use Permit 22-011 authorizing the following actions for the Halloween in the Village:

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27th day of September, 2022.

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RESOLUTION NO.

PAGE 3
______________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
______________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
______________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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RESOLUTION NO.

PAGE 4
EXHIBIT "A"

CONDITIONS OF APPROVAL FOR
TEMPORARY USE PERMIT NO. 22-011
GENERAL CONDITIONS:

1. This Temporary Use Permit authorizes “Halloween in the Village” and directs staff to implement related safety measures including no parking zones and street closures on Monday, October 31, 2022.

2. The applicant shall ascertain and comply with all State, County and City requirements as are applicable to this project.

3. The event shall occur in substantial conformance with the application and plans on file in the Community Development Department.

4. The applicant shall comply with all of the Conditions of Approval for Temporary Use Permit 22-011.

5. The applicant shall agree to indemnify and defend at his/her sole expense any action brought against the City, its agents, officers, or employees because of the issuance of said approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney’s fees which the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve applicant of his/her obligations under this condition.

6. The applicant shall notify all affected businesses and residents of street closures and parking restrictions at least 48 hours prior to the event.

7. The applicant shall clean up all debris associated with the event to the satisfaction of the Public Works Director.

8. Traffic detouring shall be coordinated with the Police Department.

9. The Public Works Department shall be responsible for ordering and directing the setup of all traffic control equipment through a private purveyor.

10. The applicant shall provide a $1,000,000 commercial general liability insurance policy naming the City as additional insured, subject to approval by the City Attorney. Proof of the insurance shall be submitted to the Director of Legislative and Information Services ten (10) days before the event.

11. The applicant shall reimburse the City for all costs incurred for closure of Branch Street and security provided by the Police Department.

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ATTACHMENT 2

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Item 8.m.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director
Tashina Ureno, Human Resources Officer
SUBJECT: Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule to Establish a Pay Schedule for a Temporary Part-Time Acting Capital Improvement Project Manager DATE: September 27, 2022
SUMMARY OF ACTION:

Adoption of the Resolution amending the Citywide Combined Salary Schedule to establish a pay schedule for the position of a Temporary Part-Time Acting Capital Improvement Project Manager will provide continuity of technical support for critical functions within the Public Works Department during a leave of absence of the permanent Capital Improvement Project Manager.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approval of the Amended Citywide Combined Salary Schedule will result in a new temporary part time position to help fulfill some of the duties of the permanent Capital Improvement Project Manager while on a leave of absence. Total costs will depend on the length of service of the Temporary Part-Time Acting Capital Improvement Project Manager; however, the length of service will not exceed 960 hours, for a total cost of approximately $63,028.80. During the permanent Capital Improvement Project Manager leave of absence, it is anticipated that 66.6% of the employee’s pay will be paid through third-party benefit payments and should result in a neutral cost to the City to use the Temporary Part-Time Acting Capital Improvement Project Manager.

RECOMMENDATION:

Adopt the Resolution amending the Citywide Combined Salary Schedule to include a new position for a Temporary Part-Time Acting Capital Improvement Project Manager.

BACKGROUND:

The Public Works Department is responsible for executing the City’s capital improvement projects. The Capital Improvement Project Manager’s role is to plan, direct, coordinate and supervise the planning, development and administration of the City's capital

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Item 8.m.

City Council
Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule to Establish a Pay Schedule for a Temporary Part-Time Acting Capital Improvement Project Manager
September 27, 2022

Page 2 ends

improvement program including budgeting, design, management, and inspection of construction of the capital projects. The City’s Capital Improvement Project Manager will be taking a leave of absence and the City is in need of temporary assistance to address critical project management needs during this time.

ANALYSIS OF ISSUES:

After communication with several individuals and consulting firms, the City has not been able to find a qualified full-time Acting Capital Improvement Project Manager; however, with the availability and qualifications of Mr. Steven Kahn, the City is confident that a significant portion of the City’s capital improvement projects will be managed and completed efficiently and effectively. Mr. Kahn is a retired CalPERS annuitant.

Employment of a retired CalPERS annuitant is subject to certain criteria and regulations.

These rules are intended to protect the public’s interest by enabling CalPERS contracting agencies the ability to re-employ retirees, and protect the retirement system from inappropriate use or abuse. CalPERS recognizes that retirees can play an important role in keeping city business running, particularly in short term or emergency situations, but also provides limitations on their service.

The Government Code provides specific guidance on employing a CalPERS retiree without reinstatement from retirement or loss or interruption of retirement benefits. Key terms of hiring a retired annuitant are:

1. Limited duration work: The appointment needs to be clearly of limited duration.

2. 960 hour limit: Retirees can work a maximum of 960 hours each fiscal year, regardless of the number of CalPERS contracting employers they work for.

3. Rate of Pay requirement: The compensation paid to any retiree must be within the monthly rate of pay range (not more or less than the CIP Manager pay range) and no other benefit, incentive, compensation in lieu of benefits, or other form of compensation can be paid in addition to this hourly pay rate.

4. Enrollment in the my|CalPERS system: The City must report the pay rate and hours worked to CalPERS through the system currently used to report payroll.

With the creation of this position, the City will employ Mr. Kahn, who has recently consulted with CalPERS on multiple occasions on the retired annuitant issue and will ensure that CalPERS regulations related to retirees are followed.

Mr. Kahn retired from the City of Santa Maria as the Public Works Director in 2018. He is a registered Civil Engineer and licensed Land Surveyor and has over 36 years of

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Item 8.m.

Page 3 ends

experience in the public works field in both the public and private sector. He is currently employed at a local engineering firm working with cities, counties, and community services districts on the management, operations, and capital projects of the organizations. He has extensive experience with all aspects of public works operations and is exceptionally well qualified to fill the Temporary Part-Time Acting Capital Improvement Project Manager position for the City of Arroyo Grande.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt the Proposed Resolution;

2. Modify and Adopt the Proposed Resolution;

3. Do not adopt the Proposed Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

Hiring a Temporary Part-Time Acting Capital Improvement Project Manager will provide the leadership for the Public Works Department to continue managing the City’s capital improvement program during the Permanent Capital Improvement Project Manager’s leave of absence. Mr. Kahn’s familiarity with the administration and operation of all aspects of public works will enable him to step into this role quickly and continue moving the City’s capital improvement projects forward during this time.

DISADVANTAGES:

There are no disadvantages since the cost is already incorporated in the approved Public Works Department budget.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Resolution

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AMENDING THE CITYWIDE

COMBINED SALARY SCHEDULE AND ESTABLISHING A

PAY SCHEDULE FOR THE POSITION OF TEMPORARY

PART-TIME ACTING CAPITAL IMPROVEMENT PROJECT

MANAGER
WHEREAS, the City Council desires to amend the Citywide Combined Salary Schedule and establish a pay schedule for the position of Temporary Part-Time Acting Capital Improvement Project Manager; and
WHEREAS, publicly available pay schedules are required to comply with California Code of Regulations (CCR) Section 570.5.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:

1. The revised Citywide Combined Salary Schedule, attached hereto as Exhibit A and incorporated herein by reference, is hereby approved.

2. This Resolution and the salaries contained in Exhibit A shall constitute a publicly available pay schedule as required by Government Code Section 20480. Pursuant to CCR 570.5, it shall be immediately accessible and available for public review during the City’s normal business hours.

3. This salary schedule shall be effective immediately on the date of the adoption of this Resolution. This Resolution and the salary schedule contained herein shall be retained by the City in its official records on a permanent basis.

On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 27 th day of September, 2022.

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ATTACHMENT 1
RESOLUTION NO.

PAGE 3
___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________

WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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GROUP: SEIU
Position ABC D E
Office Assistant I Biweekly 1,528.48 1,604.90 1,685.15 1,769.41 1,857.88 Monthly 3,311.70 3,477.29 3,651.15 3,833.71 4,025.40
Annual 39,740.45 41,727.47 43,813.85 46,004.54 48,304.77 Accounting Clerk I Biweekly 1,566.69 1,645.03 1,727.28 1,813.64 1,904.32 Monthly 3,394.50 3,564.22 3,742.43 3,929.55 4,126.03 Annual 40,733.96 42,770.66 44,909.19 47,154.65 49,512.39 Maintenance Worker I Biweekly 1,646.00 1,728.30 1,814.72 1,905.46 2,000.73 Monthly 3,566.34 3,744.66 3,931.89 4,128.49 4,334.91 Annual 42,796.12 44,935.93 47,182.72 49,541.86 52,018.95 Office Assistant II Biweekly 1,687.15 1,771.51 1,860.09 1,953.09 2,050.75 Monthly 3,655.50 3,838.28 4,030.19 4,231.70 4,443.29 Annual 43,866.02 46,059.32 48,362.29 50,780.41 53,319.43 Accounting Clerk II Biweekly 1,816.88 1,907.73 2,003.11 2,103.27 2,208.43 Maintenance Worker II Monthly 3,936.58 4,133.40 4,340.07 4,557.08 4,784.93 Annual 47,238.91 49,600.86 52,080.90 54,684.94 57,419.19 Administrative Secretary Biweekly 2,005.50 2,105.77 2,211.06 2,321.61 2,437.69 Monthly 4,345.24 4,562.51 4,790.63 5,030.16 5,281.67 Annual 52,142.92 54,750.06 57,487.57 60,361.94 63,380.04 Senior Accounting Clerk Biweekly 2,055.63 2,158.42 2,266.34 2,379.65 2,498.64 Building Permit Tech. Monthly 4,453.87 4,676.57 4,910.40 5,155.92 5,413.71 Plan/Engineer Permit Tech Annual 53,446.49 56,118.81 58,924.76 61,870.99 64,964.54 Sports Facility Coord.

Recreation Coordinator
Maintenance Worker III
Water Services Worker Biweekly 2,159.70 2,267.69 2,381.07 2,500.12 2,625.13 Monthly 4,679.35 4,913.32 5,158.99 5,416.93 5,687.78 Annual 56,152.22 58,959.83 61,907.82 65,003.21 68,253.37 Fleet Maint. Coordinator Biweekly 2,269.04 2,382.49 2,501.61 2,626.69 2,758.03 Community Services Specialist Monthly 4,916.24 5,162.06 5,420.16 5,691.17 5,975.72 Annual 58,994.92 61,944.67 65,041.90 68,294.00 71,708.70 Public Works Lead Worker Biweekly 2,325.76 2,442.05 2,564.15 2,692.36 2,826.98 Parks Lead Worker Monthly 5,039.15 5,291.11 5,555.66 5,833.45 6,125.12 Annual 60,469.80 63,493.29 66,667.95 70,001.35 73,501.42

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
Exhibit A

Page 395 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
Position ABC D E
GIS Technician Biweekly 2,504.59                2,629.82         2,761.31         2,899.38         3,044.35 Monthly 5,426.61                5,697.94         5,982.84         6,281.98         6,596.08 Annual 65,119.36            68,375.33       71,794.09       75,383.80       79,152.99 Recreation Supervisor Biweekly 2,567.21                2,695.57         2,830.34         2,971.86         3,120.45 Streets Maintenance Supervisor Monthly 5,562.28                5,840.39         6,132.41         6,439.03         6,760.98 Parks, Tree & Landscape Supervisor Annual 66,747.34            70,084.71       73,588.95       77,268.39       81,131.81 Utilities/Water & Sewer System Supervisor
Soto Sports Complex Maint. & Coord. Supervisor
Citywide Fleet Coordinator Biweekly 2,631.39                2,762.95         2,901.10         3,046.16         3,198.47 Monthly 5,701.34                5,986.40         6,285.72         6,600.01         6,930.01 Annual 68,416.03            71,836.83       75,428.67       79,200.10       83,160.11 IT Specialist Biweekly 2,764.60                2,902.83         3,047.97         3,200.37         3,360.39 Assistant Engineer Monthly 5,989.97                6,289.46         6,603.94         6,934.13         7,280.84 Engineering Inspector Annual 71,879.59            75,473.57       79,247.25       83,209.61       87,370.09 Program Analyst
Associate Engineer Biweekly 3,127.89                3,284.29         3,448.50         3,620.92         3,801.97 Monthly 6,777.10                7,115.95         7,471.75         7,845.34         8,237.60 Annual 81,325.16            85,391.41       89,660.98       94,144.03       98,851.23 Senior Engineer Biweekly 3,368.40                3,536.82         3,713.66         3,899.34         4,094.31 Monthly 7,298.19                7,663.10         8,046.26         8,448.57         8,871.00 Annual 87,578.30            91,957.21       96,555.07     101,382.83     106,451.97

Page 396 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
GROUP: POA
Position ABC D E
Police Officer Biweekly 2,823.27 2,964.43 3,112.65 3,268.29 3,431.70 Monthly 6,117.08 6,422.93 6,744.08 7,081.29 7,435.35 Annual 73,404.97 77,075.22 80,928.98 84,975.43 89,224.20 Sr. Police Officer Biweekly 3,117.61 3,273.49 3,437.16 3,609.02 3,789.47 Monthly 6,754.82 7,092.56 7,447.19 7,819.55 8,210.53 Annual 81,057.86 85,110.75 89,366.29 93,834.60 98,526.33 Police Sergeant Biweekly 3,613.43 3,794.10 3,983.80 4,182.99 4,392.14 Monthly 7,829.09 8,220.54 8,631.57 9,063.15 9,516.31 Annual 93,949.08 98,646.54 103,578.86 108,757.81 114,195.70 Records Clerk Biweekly 1,967.53 2,065.90 2,169.20 2,277.66 2,391.54 Monthly 4,262.97 4,476.12 4,699.93 4,934.92 5,181.67 Annual 51,155.66 53,713.45 56,399.12 59,219.08 62,180.03 Records/Property Evidence Tech. Biweekly 2,173.72 2,282.41 2,396.53 2,516.36 2,642.17 Monthly 4,709.73 4,945.22 5,192.48 5,452.10 5,724.71 Annual 56,516.78 59,342.62 62,309.75 65,425.24 68,696.50 Police Trainee Biweekly 2,459.14 2,582.10 2,711.21 2,846.77 2,989.11 Monthly 5,328.15 5,594.55 5,874.28 6,168.00 6,476.40 Annual 63,937.76 67,134.65 70,491.38 74,015.95 77,716.75

Page 397 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
GROUP: FCFA IAFF
Position ABC D E
Fire Fighter Biweekly 2,252 2,365 2,483 2,607 2,738
Monthly 4,880 5,124 5,380 5,649 5,932
Annual 58,560 61,488 64,562 67,791 71,180
Fire Engineer Biweekly 2,612 2,742 2,880 3,024 3,175
Monthly 5,659 5,942 6,239 6,551 6,879
Annual 67,908 71,303 74,869 78,612 82,543
Fire Captain Biweekly 3,105 3,260 3,423 3,594 3,774
Monthly 6,727 7,063 7,417 7,787 8,177
Annual 80,724 84,760 88,998 93,448 98,121
GROUP: FCFA MANAGEMENT
Position LOW MID HIGH
Administrative Operations Manager/ Biweekly 3,162 3,504 3,845 Clerk to the Board Monthly 6,851 7,591 8,331
Annual 82,212 91,092 99,972
Battalion Chief Biweekly 4,679 5,184 5,688
Monthly 10,138 11,232 12,325
Annual 121,659 134,780 147,900
Fire Chief Biweekly 5,428 6,014 6,600
Monthly 11,761 13,031 14,301
Annual 141,126 156,366 171,606

Page 398 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
GROUP: MANAGEMENT
Position LOW MID HIGH
Office Assistant I Biweekly 1,560.00 1,728.46 1,896.92 Monthly 3,380.00 3,745.00 4,110.00 Annual 40,560.00 44,940.00 49,320.00 Office Assistant II Biweekly 1,721.54 1,908.00 2,094.46 Monthly 3,730.00 4,134.00 4,538.00 Annual 44,760.00 49,608.00 54,456.00 Administrative Secretary Biweekly 1,997.08 2,212.38 2,427.69 Monthly 4,327.00 4,793.50 5,260.00 Annual 51,924.00 57,522.00 63,120.00 Executive Secretary Biweekly 2,259.69 2,503.85 2,748.00 Monthly 4,896.00 5,425.00 5,954.00 Annual 58,752.00 65,100.00 71,448.00 Assistant Planner Biweekly 2,494.62 2,763.92 3,033.23 Monthly 5,405.00 5,988.50 6,572.00 Annual 64,860.00 71,862.00 78,864.00 Associate Planner Biweekly 2,753.08 3,050.54 3,348.00 Deputy City Clerk/ Monthly 5,965.00 6,609.50 7,254.00 Communications Coordinator Annual 71,580.00 79,314.00 87,048.00 Planning Manager Biweekly 3,272.77 3,626.31 3,979.85 Accounting Manager Monthly 7,091.00 7,857.00 8,623.00 Management Analyst Annual 85,092.00 94,284.00 103,476.00 Public Works Manager Biweekly 3,525.23 3,905.31 4,285.38 Utilities Manager Monthly 7,638.00 8,461.50 9,285.00 Annual 91,656.00 101,538.00 111,420.00
Information Technology Mgr Biweekly 3,612.00 4,001.77 4,391.54 Monthly 7,826.00 8,670.50 9,515.00 Annual 93,912.00 104,046.00 114,180.00

Page 399 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
Position LOW MID HIGH
Capital Improvement Projects Biweekly 3,702.46                  4,102.15         4,501.85 Manager Monthly 8,022.00                  8,888.00         9,754.00 Annual 96,264.00           106,656.00     117,048.00
Human Resources Officer Biweekly 3,795.69                  4,205.08         4,614.46 Dir of Legis and Info Services Monthly 8,224.00                  9,111.00         9,998.00 Dir of Recreation Services Annual 98,688.00           109,332.00     119,976.00 Building Official Biweekly 3,889.85                  4,310.31         4,730.77 Monthly 8,428.00                  9,339.00       10,250.00 Annual 101,136.00        112,068.00     123,000.00
Police Commander Biweekly 4,423.85                  4,901.31         5,378.77 Monthly 9,585.00                10,619.50       11,654.00 Annual 115,020.00        127,434.00     139,848.00
City Engineer Biweekly 4,738.62                  5,251.15         5,763.69 Monthly 10,267.00              11,377.50       12,488.00 Annual 123,204.00        136,530.00     149,856.00
Director of Public Works Biweekly 5,230.62                  5,795.54         6,360.46 Dir of Administrative Services Monthly 11,333.00              12,557.00       13,781.00 Dir of Community Develop Annual 135,996.00        150,684.00     165,372.00 Police Chief Biweekly 5,661.23                  6,272.54         6,883.85 Monthly 12,266.00              13,590.50       14,915.00 Annual 147,192.00        163,086.00     178,980.00
Assistant City Manager/Public Biweekly 6,303.69                  6,983.77         7,663.85 Works Director Monthly 13,658.00              15,131.50       16,605.00 Annual 163,896.00        181,578.00     199,260.00
City Manager Biweekly         7,825.85
Monthly       16,956.00
Annual     203,472.00

Page 400 of 514 ends

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 09/27/2022
GROUP: PART‐TIME POSITIONS
POLICE DEPARTMENT Step A Step B Step C Step D
Administrative Intern (Cadet) $16.30 $17.12 $17.97 $18.87 Records Clerk $20.91 $21.95 $23.05 $24.20
Fleet & Equipment Technician $25.26 $26.53 $27.85 $29.25 Neighborhood Services Technician $22.54 $23.67 $24.85 $26.10 Training Technician $25.26 $26.53 $27.85 $29.25
Police Reserve Officer Trainee $24.11 $25.31 $26.58 $27.90 Police Reserve Officer $27.68 $29.06 $30.51 $32.04
Designated Level I Reserve Officer $34.60 $36.33 $38.15 $40.05

RECREATION SERVICES DEPARTMENT
AM/PM Assistant I $15.53 $16.30 $17.12 $17.97
AM/PM Assistant II $16.50 $17.32 $18.19 $19.10
AM/PM Assistant Teacher $18.14 $19.05 $20.00 $21.00
AM/PM Teacher $19.95 $20.95 $22.00 $23.10
Pre School Teacher $19.95 $20.95 $22.00 $23.10
Facility Attendant $15.53 $16.30 $17.12 $17.97
Senior Facility Attendant $16.50 $17.32 $18.19 $19.10
Sports Facility Attendant $15.53 $16.30 $17.12 $17.97
Volunteer and Program Coordinator $25.48 $26.76 $28.09 $29.50

MISCELLANEOUS
Capital Improvement Projects Manager $46.28 $49.40 $52.74 $56.27 Administrative Intern $16.30 $17.12 $17.97 $18.87
Office Assistant I $16.99 $17.84 $18.74 $19.67
Office Assistant II $19.86 $20.85 $21.90 $22.99
Sr. Office Assistant $20.91 $21.95 $23.05 $24.20
Administrative Secretary $23.89 $25.08 $26.34 $27.65
Executive Secretary $28.25 $29.66 $31.14 $32.70
Building Permit Technician $25.64 $26.92 $28.26 $29.68
Assistant Engineer $31.29 $32.85 $34.50 $36.22
Associate Engineer $34.41 $36.13 $37.94 $39.84
Planning Technician $25.64 $26.92 $28.26 $29.68
Assistant Planner $29.83 $31.32 $32.89 $34.53
Associate Planner $32.27 $33.88 $35.58 $37.36
Custodian $17.34 $18.20 $19.11 $20.07
Maintenance Worker $17.34 $18.20 $19.11 $20.07
Student Intern (seasonal) $15.53

FIVE CITIES FIRE AUTHORITY
Office Assistant II $18.17 $18.71 $20.02 $21.03
Reserve Firefighter $15.00 $16.00 $17.00

HOURLY RATE

Page 401 of 514 ends

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Patrick Holub, Associate Planner
SUBJECT: Discussion and Consideration of Introduction of Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Short Term Rentals (Vacation Rentals and Homestays); Development Code Amendment 22-002
DATE: September 27, 2022
SUMMARY OF ACTION:

Introduction of the proposed Ordinance regulating Short Term Rentals.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

In accordance with Chapter 3.24 of the Arroyo Grande Municipal Code (AGMC), Short Term Rentals are required to pay the City’s transient occupancy tax (TOT) in the amount of 13.5% of the rent charged by the operator, 10% of which is retained by the City, 2% is provided to the Arroyo Grande Tourism Business Improvement District (AGTBID), and

1.5% is provided to the San Luis Obispo County Tourism Marketing District (SLOTMD) (Visit SLO Cal). The City received an estimated $150,000 in FY 2021-22 in TOT from Short Term Rentals.

RECOMMENDATION:

Introduce an Ordinance amending Title 16 of the AGMC regarding Short Term Rentals.

BACKGROUND:

On June 10, 2014, the City Council adopted Ordinance No. 663, establishing vacation rentals and homestays (Short Term Rentals or STRs) as permitted land uses in the City’s residential zoning districts, subject to the approval of a Minor Use Permit-Plot Plan Review (Attachment 2). A vacation rental is defined as a structure being rented for less than thirty (30) days without concurrently being occupied by the owner/operator, while a homestay is defined as an owner-occupied dwelling unit where a maximum of two shortterm lodging rooms are provided for compensation. These two uses are collectively known as Short Term Rentals or STRs.

Page 402 of 514 ends

Item 9.a.

City Council
Discussion and Consideration of Introduction of Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Short Term Rentals (Vacation Rentals and Homestays); Development Code Amendment 22-002 September 27, 2022

Page 2 ends

On October 12, 2021, the City Council directed staff to bring back a discussion item at a future meeting to evaluate Ordinance 663 after receiving public comment expressing concerns regarding the recent proliferation of STRs, the application and appeal process associated with STRs, and other related issues such as the same street buffer.

On March 22, 2022, the City Council conducted a study session regarding the existing short-term rental ordinance. The Council made a number of recommendations, including:
 Establishing a cap on the overall number of vacation rental approvals that can be granted;
 Contracting with an enforcement company to identify unpermitted rentals;  Altering the methodology for how the buffer distance between rentals is calculated;  Establishing objective revocation triggers;
 Requiring that all mailing labels for vacation rentals be provided by the City and paid for by the applicant;
 Improving performance standards to ensure greater compatibility with the neighborhood;
 Consider an expiration clause; and
 Considering whether to impose a parking requirement.

A Resolution containing a draft Ordinance was developed from these discussion points for the Planning Commission’s consideration. On August 2, 2022, the Planning Commission conducted a noticed public hearing to consider the proposed revisions to AGMC Sections 16.52.230 and 16.52.240 and adopted a Resolution recommending the City Council adopt an ordinance amending the regulations regarding Short Term Rentals.

Their recommendations included the following amendments:

1. Establish a cap on vacation rentals of 120.

2. Increase the buffer between Short Term Rentals of all kinds to 500 feet and provide a buffer from all schools of 500 feet.

3. Initiate revocation procedures if a designated emergency contact is unresponsive three consecutive times or if a citation is issued to a short-term rental tenant by the Police Department.

4. Require that Short Term Rental permits expire at the point of sale of the property.

5. Require that any unit previously occupied by a long-term renter within the past year be ineligible to become a short-term rental.

6. Incorporate the same proposed performance standards for homestays as vacation rentals.

7. Provide two parking spaces off-street for all short-term rentals. The parking spaces can be covered or uncovered.

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Item 9.a.

Page 3 ends

On September 13, 2022, the City Council considered introduction of a draft Ordinance to incorporate changes to the short-term rental regulations consistent with feedback received from the Planning Commission and City Council. During that meeting, the City Council provided feedback on each recommended amendment to the Ordinance and directed staff to make additional changes to the proposed Ordinance. The hearing to introduce the proposed Ordinance was continued to September 27, 2022.

ANALYSIS OF ISSUES
At its September 13, 2022 hearing, the City Council provided the following direction to staff regarding the proposed STR Ordinance:

1. Cap the total number of vacation rental approvals at ninety (90);

2. Concur with Planning Commission’s recommendations to increase the buffer distance to five-hundred feet (500’) between STRs of all types and to create a buffer distance of five-hundred feet (500’) from any school;

3. Clarify that an emergency contact shall be deemed unresponsive if no answer is received to a complaint call and that if the emergency contact is unresponsive three times in a rolling twelve (12) month period, in which case revocation proceedings shall be initiated. Furthermore, if two arrests are made or citations issued to STR guests within a rolling twelve (12) month period, revocation proceedings shall be initiated;

4. Clarify the language in the draft Ordinance to indicate that violations of the performance standards will allow staff to initiate revocation proceedings;

5. Clarify that revocation proceedings will include a public hearing;

6. Include information in the City’s host compliance consultant’s forthcoming outreach letters informing STR permit holders of their option to voluntarily relinquish their approval;

7. Require that all STR hosts remit TOT every six months, otherwise revocation proceedings can be initiated;

8. Remove the Planning Commission’s recommended parking requirement for homestays; and

9. Concur with staff’s recommended changes to the definitions of homestays and vacation rentals.

Each of the City Council’s recommended changes to the draft Ordinance have been incorporated and are included in the attachments to this staff report.

Following the September 13, 2022 hearing, staff considered whether a minimum amount of TOT should be required of STRs during each 6-month period of TOT payment. Should Council wish to incorporate such a requirement, the Ordinance may be modified prior to reintroduction during the hearing. Following introduction, the Ordinance will be presented for adoption at the next regular City Council meeting.

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Item 9.a.

Page 4 ends

ALTERNATIVES:

1. Introduce the proposed Ordinance amending the Short-Term Rental regulations within the City;

2. Revise and introduce an Ordinance amending the Short-Term Rental regulations within the City; or

3. Provide other direction to staff.

ADVANTAGES:

Introduction of the proposed Ordinance will allow the City to further regulate Short Term Rentals in a manner that is harmonious with the existing character of the neighborhoods in which the rentals exist.

DISADVANTAGES:

If the proposed Ordinance is ultimately adopted, it will establish a cap on Short Term Rentals that will reduce potential TOT revenue from new STRs. Furthermore, adoption of the Ordinance will render all existing STRs legally nonconforming.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the adoption of an ordinance to implement amendments to the short-term rental regulations is categorically exempt from CEQA pursuant to Section 15305 – Minor Alterations in Land Use Limitations.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. Proposed Ordinance

2. Proposed Ordinance with redlines showing changes from September 13, 2022 introduction

3. Minutes from the September 3, 2019 Planning Commission meeting

4. Minutes from the October 12, 2021 City Council meeting

5. Staff Report and Minutes from the March 22, 2022 City Council meeting

6. Staff Report and Minutes from the August 2, 2022 Planning Commission meeting

7. Staff report and attachments from the September 13, 2022 City Council meeting

8. Draft Minutes from the September 13, 2022 City Council meeting

Page 405 of 514 ends

ATTACHMENT 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE

MUNICIPAL CODE REGARDING VACATION RENTALS AND

HOMESTAYS
WHEREAS, the City of Arroyo Grande (“City”) currently regulates vacation rentals and homestays as established by Ordinance No. 663; and
WHEREAS, due to the increasing popularity of vacation rentals and homestays, the City Council held a study session on March 22, 2022 to discuss impacts and complaints associated with short term rentals; and
WHEREAS, Council directed staff to amend existing regulations to ensure that impacts are addressed and mitigated and that the character of existing neighborhoods is maintained, while providing an expanded type of lodging facility available within the City; and
WHEREAS, it is the purpose of this Ordinance to protect the public health, safety, and welfare within the City by establishing rules and requirements for vacation rentals and homestays; and
WHEREAS, the City of Arroyo Grande has duly initiated amendments to the Arroyo Grande Municipal Code (“AGMC”); and
WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on August 2, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the matter as presented; and
WHEREAS, on August 2, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council amending Sections 16.52.230 and 16.52.240 of the Arroyo Grande Municipal Code; and
WHEREAS, the City Council has, after giving notice thereof as required by law, held a public hearing on September 13, 2022, concerning the proposed amendments to AGMC Sections 16.52.230 and 16.52.240; and
WHEREAS, the City Council has carefully considered all pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows:

SECTION 1: The above recitals and findings are true and correct and incorporated herein by this reference.

Page 406 of 514 ends

ORDINANCE NO.

PAGE 2
SECTION 2: Arroyo Grande Municipal Code Section 16.52.230 is hereby amended as follows:

SECTION 16.52.230 – VACATION RENTALS
A. Purpose and intent. The purpose of these regulations is to ensure that vacation rentals located in the city conform to the existing character of the neighborhood in which they are located and do not create an adverse impact on adjacent properties.

B. Applicability. Vacation rentals may be permitted only with approval of a minor use permit. Vacation rentals shall comply with the property development standards of the underlying district and the performance standards and special conditions listed in Section 16.52.230.C. Any revocation proceedings for a vacation rental will include a public hearing.

C. Performance standards and conditions for vacation rentals.

1. Operators of vacation rentals are required to obtain a minor use permit-plot plan review (Section 16.16.080) and a business license.

2. Any proposed vacation rental shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood

3. All Building Code and Fire Code requirements for the level of occupancy of the vacation rental shall be met.

4. All environmental health regulations shall be met.

5. The operator of the vacation rental shall, at all times while the property is being used as a vacation rental, maintain a contact person/entity within a fifteen (15) minute drive of the property. The contact person or entity must be available via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person or entity shall respond, either in person or by return telephone call, with a proposed resolution to the complaint within three (3) hours between 7:00 am and 9:00 pm, and within thirty (30) minutes between 9:00 pm and 7:00 am. Vacation rental applicants shall be required to pay the City’s fee at the time of application to generate mailing labels for all property owners within 300 feet. An emergency contact shall be deemed unresponsive if no response is provided to a call for assistance. Three instances of unresponsiveness within a twelve (12) month period shall be grounds to initiate revocation proceedings.

6. The operator of the vacation rental shall annually, at the time of renewal of the business license, notify the Community Development Department of the name, address and telephone number of the contact person required in subsection

16.52.230.C.5.

7. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person

Page 407 of 514 ends

ORDINANCE NO.

PAGE 3
required in subsection 16.52.230.C.5. The notice shall also set forth the address of the vacation rental, the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked onsite, and the day(s) established for garbage collection. The notice shall also provide the non-emergency number of the Arroyo Grande Police Department.

8. On-site advertising of the vacation rental is prohibited.

9. The number of overnight occupants shall be limited to two persons per bedroom and two additional persons. A bedroom shall meet the minimum size requirements as defined in the Building Code.

10.All refuse shall be stored in appropriate containers and timely placed at the curb for collection every week.

11.The operator of the vacation rental shall pay Transient Occupancy Tax (“TOT”) as required by Arroyo Grande Municipal Code Section 3.24.030.

12.Establishment of a vacation rental within five-hundred feet (500’) of an existing short term rental or school shall not be permitted.

13.Violations – violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220.

14.Vacation rentals shall not be approved within Planned Unit Developments (PUDs).

15.The total number of approved vacation rentals within the City shall not exceed ninety (90). Once the cap is reached, complete applications will be added to a waiting list that will be processed on a first-come-first-serve basis if new approvals become available.

16.Vacation rentals must remit TOT to the City at least once every six (6) months, otherwise revocation proceedings shall be initiated.

17.The listed emergency contact for a vacation rental shall not be un-responsive to neighborhood complaints three (3) times within a twelve (12) month period, otherwise revocation proceedings shall be initiated. An emergency contact shall be deemed unresponsive if no response is provided to a call for assistance.

18.Revocation proceedings shall be initiated if two (2) citations are issued by a City official or two (2) arrests are made within a twelve (12) month period due to rental guest behavior.

19.Vacation rentals shall be required to provide two (2) off-street parking spaces for use by rental guests. These spaces shall be kept free and clear and the rental guest shall be made aware of their location for preferred use during the duration of the stay.

SECTION 3: Arroyo Grande Municipal Code Section 16.52.240 is hereby amended as follows:

SECTION 16.52.240 – HOMESTAYS
A. Purpose and Intent. The purpose of these regulations is to ensure that homestays located in the city conform to the existing character of the neighborhood in which they are located and do not create an adverse impact on adjacent properties.

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B. Applicability. Homestays may be permitted only with approval of a minor use permit. Homestays shall comply with the property development standards of the underlying district and the performance standards and special conditions listed in subsection C. Any revocation proceedings for a homestay will include a public hearing.

C. Performance Standards and Conditions for Homestays.

1. Operators of homestays are required to obtain a minor use permit-plot plan review (Section 16.16.080) and a business license.

2. Any proposed homestay shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood.

3. All Building Code and Fire Code requirements for the level of occupancy of the homestay shall be met.

4. All environmental health regulations shall be met.

5. The operator shall reside on the premises during the entire duration of the rental stay.

6. Individual guest stays shall be limited to fourteen (14) days, with a seven-day period between stays.

7. On-site advertising of the homestay is prohibited.

8. A bedroom shall meet the minimum size requirements as defined in the Building Code.

9. The operator of the homestay shall pay Transient Occupancy Tax (“TOT”) as required by Arroyo Grande Municipal Code Section 3.24.030.

10.Establishment of a homestay within five-hundred (500) feet of an existing short term rental or school shall not be permitted.

11.Violations. Violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220.

12.Homestays must remit TOT to the City at least once every six (6) months, otherwise revocation proceedings shall be initiated.

13.Revocation proceedings shall be initiated if two (2) citations are issued by a City official or two (2) arrests are made within a twelve (12) month period due to rental guest behavior.

SECTION 4: Arroyo Grande Municipal Code Section 16.04.070 is hereby amended as follows:

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“Vacation rental” means a structure or structures on a property being rented for less than thirty (30) days without concurrently being occupied by the owner/operator where the short-term lodging is provided for compensation.

SECTION 5: Upon adoption of this Ordinance, the City Clerk shall file a Notice of Exemption pursuant to 14 CCR § 15062.

SECTION 6: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance.

SECTION 7: If any provision of this Ordinance or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 8: This Ordinance shall take effect thirty (30) days from the date of adoption.

On motion of Council Member , seconded by Council Member , and on the following roll call vote to wit:

AYES:

NOES:

ABSENT:

The foregoing Ordinance was adopted this ___ day of _________, 2022.

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___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY

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ATTACHMENT 2
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE

MUNICIPAL CODE REGARDING VACATION RENTALS AND

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows:

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SECTION 1: The above recitals and findings are true and correct and incorporated herein by this reference.

SECTION 2: Arroyo Grande Municipal Code Section 16.52.230 is hereby amended as follows:

C. Performance standards and conditions for vacation rentals.

1. Operators of vacation rentals are required to obtain a minor use permit-plot plan review (Section 16.16.080) and a business license.

3. All Building Code and Fire Code requirements for the level of occupancy of the vacation rental shall be met.

4. All environmental health regulations shall be met.

16.52.230.C.5.

7. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person required in subsection 16.52.230.C.5. The notice shall also set forth the address

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of the vacation rental, the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked onsite, and the day(s) established for garbage collection. The notice shall also provide the non-emergency number of the Arroyo Grande Police Department.