Arroyo Grande City Council
May 23, 2023

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, May 23, 2023, 6:00 p.m.

In person at:

Arroyo Grande City Council Chambers
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://us02web.zoom.us/j/86752345420
Please click the link above to join the Zoom Meeting:

Webinar ID: 867 5234 5420
Or by Telephone: 1-669-900-6833; 1-346-248-7799
This City Council meeting is being conducted in a hybrid in-person/virtual format. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s website and www.slo-span.org.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring June 2023 as “Pride Month”

6.b Honorary Proclamation Declaring June 2, 2023 as “World Hunger Day”

6.c City Manager Communications
(McDONALD)
Recommended Action:

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

7. CITY COUNCIL REPORTS

7.a MAYOR RAY RUSSOM:

1. California Joint Powers Insurance Authority (CJPIA)

2. Central Cost Blue Regional Recycled Water Authority Board

3. San Luis Obispo County Mayor's Meeting

4. South San Luis Obispo County Sanitation District (SSLOCSD)

5. Other

7.b MAYOR PRO TEM BARNEICH:

1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

7.c COUNCIL MEMBER GEORGE:

1. Five Cities Fire Authority

2. Tourism Business Improvement District Advisory Board

3. Visit SLO CAL Advisory Board

4. Other

7.d COUNCIL MEMBER GUTHRIE:

1. County Water Resources Advisory Committee (WRAC)
Council of Governments/Regional Transit Authority/ South County Transit (SLOCOG/SLORTA/SCT)

2. 3. Integrated Waste Management Authority Board (IWMA)

4. REACH Economic Development Roundtable

5. Other

7.e COUNCIL MEMBER SECREST:

1. Air Pollution Control District (APCD)

2. South County Chambers of Commerce Arroyo Grande Business Meeting

3. South County Chambers of Commerce Governmental Affairs Committee

4. Other

8. COMMUNITY COMMENTS AND SUGGESTIONS
This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by joining the Zoom meeting utilizing one of the methods provided below. Please use the “raise hand” feature to indicate your desire to provide public comment.

Click the link below to join the webinar: https://us02web.zoom.us/j/86752345420; Webinar ID: 867 5234 5420
•
Or by Telephone: 1-669-900-6833; 1-346-248-7799
Press * 9 to “raise hand” for public comment
•
The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may:
• Direct City staff to assist or coordinate with you.
• A Council Member may state a desire to meet with you. • It may be the desire of the Council to place your issue or matter on a future Council agenda.

Please adhere to the following procedures when addressing the Council:
• Comments should be limited to 3 minutes or less.
• Your comments should be directed to the Council as a whole and not directed to individual Council members.
• Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted.

9. CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion.

9.a Consideration of Cash Disbursement Ratification
(VALENTINE)
Recommended Action:
1) Ratify the attached listing of cash disbursements for the period of April 15 through April 30, 2023; 2) Determine that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.b Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
(VALENTINE)
Recommended Action:

Receive, consider, and file the FY 2022-23 Third Quarter Financial Status Report; and approve four Budget Adjustment Requests.

9.c Approval of Minutes
(MATSON)
Recommended Action:

Approve the minutes of the Regular City Council Meetings of April 25, 2023, and May 9, 2023, as submitted.

9.d Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events

(McDONALD)
Recommended Action:
1) Adopt a Resolution declaring a continued local emergency related to the ongoing storm events, beginning in December 2022 and continuing through the present. 2) Make findings that adopting the Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because the continued declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.e Consideration of a Professional Services Agreement with Kosmont Real Estate Services dba Kosmont Realty
(McDONALD)
Recommended Action:
1) Authorize the City Manager to enter into the attached agreement with Kosmont Real Estate Services dba Kosmont Realty (“Kosmont”) for the continued provision of real estate advisory services associated with 400 W. Branch in the City of Arroyo Grande (“Property”), in substantially final form, subject to minor modifications approved by the City Manager in consultation with the City Attorney. 2) Make findings that approving an agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.f Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall
(McDONALD)
Recommended Action:

Authorize the display of the Pride Flag during the month of June 2023 at Heritage Square Park and at City Hall.

9.g Consideration of the Sidewalk Tile Bands, Tree Well Borders and Crosswalk Improvements in the Village as Components of the 2022 Concrete Repairs Project (ROBESON)
Recommended Action:
1) Approve the selection of Bear Path clay brick pavers in a red flash color, or equal, with a basketweave pattern in the sidewalk bands and tree well surrounds, and a 90-degree herringbone pattern in selected crosswalks in the Village of Arroyo Grande; 2) Find the action exempt from CEQA under a Class 1 Exemption, which applies to which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use (State CEQA Guidelines, § 15301), and where none of the exceptions to the Class 1 exemption set forth in State CEQA Guidelines Section 15300.2 apply.

9.h Consideration of an Award of Contract to Main Line Engineering Construction for Construction of the Fair Oaks Avenue Water Line Replacement Project, PW 2023-05 (ROBESON)
Recommended Action:
1) Allocate $71,998.05 from the Water Facility fund to the Fair Oaks Avenue Water Line Replacement Project; 2) Award a contract for the Fair Oaks Avenue Water Line Replacement Project to Main Line Engineering Construction in the amount of $669,435.50;

3) Authorize the City Manager to approve change orders of 10% of the contract amount, $66,943.55, for unanticipated costs during the construction phase of the Project; and 4) Determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Class 1 Section 15301 Existing Facilities, Class 2 Section 15302 Replacement or Reconstruction, and Class 4 Section 15304 Minor Alterations of Land.

9.i Consideration to Approve the Sewer System Management Plan Revision 2 (ROBESON)
Recommended Action:
1) Approve the Sewer System Management Plan - Revision 2; 2) Make findings that approving the Sewer System Management Plan revision is not a project subject to the California Environmental Quality Act (“CEQA”) in accordance with Sections 15301, 15302, 15308 of the (CEQA) Guidelines.

9.j April 2023 Monthly Water Supply and Demand Update
(ROBESON)
Recommended Action:

Receive and file the Monthly Water Supply and Demand Update.

10. PUBLIC HEARINGS

10.a Public Hearing to Consider Adoption of Resolutions Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID); Approving the AGTBID FY 2023-24 Budget; and Direction Regarding Amendments to the Board By-Laws (McDONALD)
Recommended Action:
1) Conduct a public hearing to receive public comment and protests regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for FY 2023- 24; 2) Determine whether a legally sufficient number of protests have been made; 3) If a legally sufficient protest is not made, adopt a Resolution levying an annual assessment for the AGTBID for FY 2023-24; 4) Adopt a Resolution approving the FY 2023-24 operating budget for the AGTBID; 5) Approve changes to the administration of the AGTBID; 6) Provide direction regarding proposed revisions to the AGTBID Advisory Board By-Laws; and 7) Determine that conducting a public hearing to adopt a resolution to levy and collect assessments, adopting a resolution to approve the AGTBID operating budget, and approving changes to the administration of the AGTBID Advisory Board is not subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15061, subd. (b)(2)-(3), 15378.).

11. OLD BUSINESS

11.a Discuss Terms for a Potential Contract for Fire and Emergency Response Services Between the Five Cities Fire Authority and the Oceano Community Services District (McDONALD)
Recommended Action:

Discuss and provide direction regarding the proposed terms for a future fire and emergency services contract between the FCFA and the OCSD.

12. NEW BUSINESS

12.a Review Preliminary FY 2023-25 Biennial Operating Budget (VALENTINE)
Recommended Action:

Review the preliminary budget and provide feedback to staff in preparation for the public hearing scheduled for June 13, 2023, to consider the Fiscal Years (FY) 2023-25 Biennial Budget.

13. COUNCIL COMMUNICATIONS
Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least one other Council Member.

14. ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date.

This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature.

City Council Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.org.

Item 6.a.

Item 6.b.

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Cash Disbursement Ratification DATE: May 23, 2023
SUMMARY OF ACTION:

Review and ratify cash disbursements.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $894,305.50 fiscal impact that includes the following items:
 Accounts Payable Checks $501,806.29
 Payroll & Benefit Checks $392,499.21
RECOMMENDATION:
1) Ratify the attached listing of cash disbursements for the period of April 15 through April 30, 2023; 2) Determine that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) BACKGROUND:

Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual.

ANALYSIS OF ISSUES:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2022-23 budget.

Item 9.a.

City Council
Consideration of Cash Disbursement Ratification
May 23, 2023

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

ADVANTAGES:
 The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.
 Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable.

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

Ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
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. April 16 – April 30, 2023 – Accounts Payable Check Register

2. April 21, 2023 – Payroll and Benefit Check Registers

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name1 04/18/2023 297210 $ 4,682.69 05/23 RETIREE MEDICAL 010.4099.5136 ICMA RETIREMENT CORP2 04/18/2023 297210 358.87 05/23 RETIREE MEDICAL 220.4303.5136 ICMA RETIREMENT CORP3 04/18/2023 297210 602.12 05/23 RETIREE MEDICAL FCFA 010.0000.1111 ICMA RETIREMENT CORP4 04/21/2023 297211 364.20 AMMUNITION 010.4204.5255 ADAMSON INDUSTRIES, INC5 04/21/2023 297212 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MARIA ALCANTAR6 04/21/2023 297213 19.92 OFFICE SUPPLIES 010.4120.5201 AMAZON CAPITAL SERVICES7 04/21/2023 297214 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES8 04/21/2023 297214 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES9 04/21/2023 297214 28.50 CORP YARD MATS 010.4213.5303 ARAMARK UNIFORM SERVICES10 04/21/2023 297214 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES11 04/21/2023 297214 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES12 04/21/2023 297214 10.45 AUTO SHOP TOWELS 010.4305.5303 ARAMARK UNIFORM SERVICES13 04/21/2023 297214 15.91 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES14 04/21/2023 297214 15.91 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES15 04/21/2023 297214 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES 16 04/21/2023 297214 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES 17 04/21/2023 297214 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES 18 04/21/2023 297214 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES 19 04/21/2023 297214 7.50 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES20 04/21/2023 297214 7.50 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES21 04/21/2023 297214 24.44 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES22 04/21/2023 297214 24.44 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES23 04/21/2023 297215 183.52 ACCT#238451-01839190 RADIO 010.4145.5403 AT & T24 04/21/2023 297215 31.43 ACCT#235841-39568063 ALARM 220.4303.5303 AT & T25 04/21/2023 297216 130.48 04/23 TOWER LEASE 010.4201.5303 ATC SEQUOIA LLC26 04/21/2023 297217 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 MARGARITA AYALA27 04/21/2023 297218 2,151.28 PD-4602 REPAIR WATER PUMP 010.4203.5601 BACK ON THE ROAD AUTOMOBILE 28 04/21/2023 297219 49.23 STREETS-BATTERY 220.4303.5603 BATTERY SYSTEMS29 04/21/2023 297219 942.79 FLEET STOCK BATTERIES 010.4203.5601 BATTERY SYSTEMS30 04/21/2023 297220 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 JAMES BERGMAN31 04/21/2023 297221 18,489.98 02/23 - PROF LEGAL SVCS 010.4003.5304 BEST BEST & KRIEGER LLP32 04/21/2023 297221 13,759.50 02/23 LITIGATION & RELATED MATTERS 010.4003.5327 BEST BEST & KRIEGER LLP33 04/21/2023 297222 25,293.42 BUILDING DEPARTMENT SERVICES 010.4212.5303 BPR CONSULTING GROUP LLC34 04/21/2023 297223 338.21 SOFTBALLS FOR LEAGUE 010.4424.5257 BSN SPORTS, LLC35 04/21/2023 297224 14,785.00 WOMENS CLUB-REMOVE 2 LARGE EUCALYPTUS 010.4420.5303 BUNYON BROS TREE SERVICE36 04/21/2023 297225 273.00 01/23-03/23 DIESEL FUEL TAX RETURN 010.0000.1202 CA DEPT OF TAX & FEE ADMIN37 04/21/2023 297226 443.46 24 TON FILL SAND 220.4303.5613 CALPORTLAND CONSTRUCTION

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name38 04/21/2023 297226 $ 310.00 TRUCK RENTAL 220.4303.5613 CALPORTLAND CONSTRUCTION39 04/21/2023 297226 614.38 5.83 TON HMA PAVEMENT MIX 220.4303.5613 CALPORTLAND CONSTRUCTION40 04/21/2023 297227 31.50 PW-5 CLEANING SUPPLIES 612.4610.5255 CARQUEST AUTO PARTS41 04/21/2023 297227 (162.92) PW-51-CREDIT FOR HYDRAULIC HOSE 612.4610.6201 CARQUEST AUTO PARTS 42 04/21/2023 297227 431.76 PW-51 HYDAULIC HOSE & FITTINGS 612.4610.6201 CARQUEST AUTO PARTS 43 04/21/2023 297228 13,291.00 SUMMER 2023 ACTIVITY GUIDE 010.4421.5504 CASEY PRINTING, INC44 04/21/2023 297229 987.20 ACCT#8245100960223598 PD DARK 010.4145.5401 CHARTER COMMUNICATIONS45 04/21/2023 297230 58.63 ACCT#090058901-CITY HALL BUSINESS TV 010.4145.5401 CHARTER COMMUNICATIONS46 04/21/2023 297231 3,724.00 HPE POINTNEXT TECH CARE-POST WARRANTY 1 YR. 010.4140.5303 CIO SOLUTIONS LP47 04/21/2023 297232 646.48 OFFICE SUPPLIES-TONERS 010.4102.5602 COAST TO COAST 48 04/21/2023 297233 1,625.00 PD LASERFICHE SUPPORT RENEWAL 010.4204.5607 COMPLETE PAPERLESS SOLUTIONS49 04/21/2023 297234 1,125.00 POST MGMT COURSE-5 DAYS, 3 MEETINGS, $75 X 5, X 3 010.4204.5501 DAVID CULVER50 04/21/2023 297235 488.50 REFUND SPRING COED SOFTBALL LEAGUE 010.0000.4608 RYAN DALLDORF51 04/21/2023 297236 400.00 03/23 NETBILL MONTHLY MAINT. 640.4710.5303 DATAPROSE LLC52 04/21/2023 297236 459.20 03/23 NETBILL CC TRANS 640.4710.5555 DATAPROSE LLC53 04/21/2023 297236 1,434.01 03/23 UTILITY BILL MAILING 640.4710.5208 DATAPROSE LLC54 04/21/2023 297236 114.80 03/23 NETBILL CC TRANS 612.4610.5555 DATAPROSE LLC55 04/21/2023 297237 2,500.00 TREEKEEPER 1 YR RENEWAL 010.4420.5303 DAVEY RESOURCE GROUP INC56 04/21/2023 297238 372.59 ACCT#2901-1271650-01 METRO INTERNET 010.4140.5303 DIGITAL WEST NETWORKS INC57 04/21/2023 297239 6,531.00 FCFA PORTABLE GENERATOR RENTAL 350.5473.7001 ELECTRICRAFT INC58 04/21/2023 297240 1,798.75 191 TALLY HO DESIGN WORK 010.4301.5303 GARING TAYLOR & ASSOCIATES INC59 04/21/2023 297240 356.25 ONGOING SURVEY WORK 010.4301.5303 GARING TAYLOR & ASSOCIATES INC60 04/21/2023 297241 2,870.01 GIS SERVICES 010.4301.5303 GHD INC61 04/21/2023 297242 2,198.00 CASH FOR GRASS-2198 SQFT 226.4306.5554 WAYNE GINTER62 04/21/2023 297243 100.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 BRENDA GONZALEZ63 04/21/2023 297244 177.57 WYPALLS CLEANING CLOTHS 612.4610.5255 GRAINGER, INC64 04/21/2023 297245 21,950.00 AG SHARE-FCFA ORG REVIEW BY BAKER TILLY 010.4120.5303 CITY OF GROVER BEACH65 04/21/2023 297246 150.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 STEVE HENRY HARVEST CHURCH66 04/21/2023 297247 106.08 03/23 PORTABLE TOILET RENTAL 220.4303.5552 HARVEY'S HONEY HUTS 67 04/21/2023 297248 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 TONI HINCKLEY68 04/21/2023 297249 845.39 CONTRACT SVCS-SALES TAX 010.4120.5303 HINDERLITER, DE LLAMAS & ASSOC 69 04/21/2023 297249 154.76 AUDIT SVCS-SALES TAX 010.4120.5303 HINDERLITER, DE LLAMAS & ASSOC70 04/21/2023 297249 416.38 CONTRACT SVCS-SALES TAX 218.4101.5303 HINDERLITER, DE LLAMAS & ASSOC 71 04/21/2023 297250 300.00 SOFTBALL UMPIRE COORDINATOR-SPRING 2023 SEASON 010.4424.5352 LARRY JUAREZ, SR72 04/21/2023 297251 300.00 BASKETBALL REFEREE COORDINATOR 010.4424.5352 GASTON KETTING OLIVIER73 04/21/2023 297252 471.41 RESOULUTIONS BOOK, RECORD PAPER 010.4002.5201 LAUTZENHISER'S STATIONERY INC74 04/21/2023 297253 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 TIERZA LITTLE

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name75 04/21/2023 297254 $ 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 BRANDY LOPEZ76 04/21/2023 297255 630.00 03/23 FACILITY USAGE-OCEANO COMM CTR-ZUMBA & 010.4424.5251 LUCIA MAR UNIFIED SCHOOL DIST77 04/21/2023 297255 480.00 02/23 FACILITY USAGE-OCEANO COMM CTR-ZUMBA & 010.4424.5251 LUCIA MAR UNIFIED SCHOOL DIST78 04/21/2023 297255 1,185.00 03/23 FACILITY USE-OCEANO COMM CTR-BASKETBALL 010.4424.5257 LUCIA MAR UNIFIED SCHOOL DIST79 04/21/2023 297256 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 VICTORIA MATTHEWS80 04/21/2023 297257 630.00 REFUND SOFTBALL-SPRING COED LEAGUE 010.0000.4608 LARA MCLURE81 04/21/2023 297258 78.59 PICKUP TOOL, BATTERIES, SCRAPER 010.4213.5604 MINER'S ACE HARDWARE, INC82 04/21/2023 297258 11.98 FASTENERS, GALV CAP & NIPPLE 010.4420.5605 MINER'S ACE HARDWARE, INC83 04/21/2023 297258 25.30 FAST SET CONCRETE, SAFETY GLAS 220.4303.5255 MINER'S ACE HARDWARE, INC84 04/21/2023 297258 224.10 IMPACT DRIVER, HAMMER 220.4303.5273 MINER'S ACE HARDWARE, INC85 04/21/2023 297258 0.96 PW-51 FASTENERS 612.4610.5601 MINER'S ACE HARDWARE, INC86 04/21/2023 297258 17.23 COBWEB BRUSH 640.4712.5273 MINER'S ACE HARDWARE, INC87 04/21/2023 297259 400.00 RES #5 BOOSTER-PROGRAM VFD 640.4712.5610 NVIRO88 04/21/2023 297260 24.32 ELECTRIC-WELL#11 352 LA CANADA 640.4711.5402 PACIFIC GAS & ELECTRIC CO89 04/21/2023 297261 26.50 UNIFORM CLEANING- PD ADMIN 010.4201.5303 PARAMOUNT CLEANERS90 04/21/2023 297261 399.00 UNIFORM CLEANING-PD PATROL 010.4203.5303 PARAMOUNT CLEANERS91 04/21/2023 297261 94.50 UNIFORM CLEANING-PD SUPPORT SV 010.4204.5303 PARAMOUNT CLEANERS 92 04/21/2023 297262 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MARK PRIEST93 04/21/2023 297263 89.07 REIMBURSE -FOOD FOR VOLUNTEERS 010.4424.5250 KELLY REYNOLDS94 04/21/2023 297264 1,000.00 REFUND SECURITY DEPOSIT-WOMEN'S CLUB 010.0000.2206 ALMA RIZO95 04/21/2023 297265 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 JONATHAN RODRIGUEZ 96 04/21/2023 297266 43.00 REFUND-BL23-105 010.0000.4050 SARAH SELZER97 04/21/2023 297267 50.00 PRE-EMPLOYMNT CREDIT CKS-ANNUAL FEE 010.4201.5315 SERVICE FIRST INFORMATION98 04/21/2023 297268 50.00 FILING FEE-NOTICE OF EXEMPTN-2022 ST REPAIRS 010.4002.5201 SLO COUNTY CLERK-RECORDER 99 04/21/2023 297269 230.06 GAS SERVICES-1375 ASH ST 010.4145.5401 SOCALGAS100 04/21/2023 297269 204.68 GAS SERVICES-200 N HALCYON 010.4145.5401 SOCALGAS101 04/21/2023 297269 14.30 GAS SERVICES-350 S ELM 010.4145.5401 SOCALGAS102 04/21/2023 297270 2,908.80 ADOBE PRO ENTERPRISE 010.4140.5607 SOFTWAREONE, INC103 04/21/2023 297270 1,558.88 CREATIVE CLOUD ALL APPS 010.4140.5607 SOFTWAREONE, INC104 04/21/2023 297270 342.30 INDESIGN 010.4140.5607 SOFTWAREONE, INC105 04/21/2023 297271 3,500.00 04/23 TBID ADMIN FEE 240.4150.5303 SOUTH COUNTY CHAMBERS106 04/21/2023 297272 750.00 FACILITY USAGE-WINTER SESSION 010.4424.5251 ST JOHN'S LUTHERAN CHURCH107 04/21/2023 297273 516.08 TONER, PRINTER CARTRIDGES 010.4421.5201 STAPLES108 04/21/2023 297274 105.00 REFUND BASKETBALL 010.0000.4605 BRITTANY SULLIVAN109 04/21/2023 297275 389.73 PW-23 SOCKET/FLEX RATCHET, PLIERS 010.4305.5273 TCA TOOLS INC110 04/21/2023 297276 367.78 RECYCLE CLASS II BASE 220.4303.5613 TROESH RECYCLING, INC111 04/21/2023 297277 48.79 MEETING SUPPLIES-COUNCIL 010.4001.5201 U.S. BANK

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name112 04/21/2023 297277 $ 358.61 MAYOR'S MEETING SUPPLIES-TJS 010.4001.5501 U.S. BANK113 04/21/2023 297277 41.00 MEETING SUPPLIES-GOAL SETTING 010.4002.5201 U.S. BANK114 04/21/2023 297277 875.00 CAPIO CONF REGISTRATION & MEMBERSHIP 010.4002.5501 U.S. BANK115 04/21/2023 297277 115.00 TRAINING-PUBLIC SECTOR EXCELLENCE 010.4002.5501 U.S. BANK116 04/21/2023 297277 800.00 TRAINING-CAPIO CONFERENCE REGISTRATION 010.4002.5501 U.S. BANK117 04/21/2023 297277 15.13 TRAINING-LUNCH 010.4002.5501 U.S. BANK118 04/21/2023 297277 13.00 TRAINING-PARKING 010.4002.5501 U.S. BANK119 04/21/2023 297277 141.81 MEETING SUPPLIES-WALMART, SMART & FINAL 010.4101.5201 U.S. BANK120 04/21/2023 297277 38.41 WALMART-OFFICE SUPPLIES 010.4120.5201 U.S. BANK121 04/21/2023 297277 675.00 CALCITIES REGISTRATION 010.4130.5501 U.S. BANK122 04/21/2023 297277 1,040.00 AEP CONFERENCE REGISTRATION 010.4130.5503 U.S. BANK123 04/21/2023 297277 586.47 ZOOM 010.4140.5303 U.S. BANK124 04/21/2023 297277 76.23 EOC SUPPLIES 010.4145.5201 U.S. BANK125 04/21/2023 297277 719.43 EOC SUPPLIES 010.4145.5201 U.S. BANK126 04/21/2023 297277 16.57 EOC SUPPLIES 010.4145.5201 U.S. BANK127 04/21/2023 297277 27.22 EOC SUPPLIES 010.4145.5201 U.S. BANK128 04/21/2023 297277 9.81 EOC SUPPLIES 010.4145.5201 U.S. BANK129 04/21/2023 297277 53.20 AUTHORIZE.NET CC FEE 010.4145.5555 U.S. BANK130 04/21/2023 297277 (116.22) CREDIT FOR ZOOM 010.4201.5201 U.S. BANK131 04/21/2023 297277 18.00 MEETING SUPPLIES-LEADERSHIP 010.4201.5501 U.S. BANK132 04/21/2023 297277 157.65 FLOWERS FOR EMPLOYEE 010.4201.5504 U.S. BANK133 04/21/2023 297277 72.58 SQUAD ROOM-MOUNTS FOR AV CAMERAS 010.4201.5604 U.S. BANK134 04/21/2023 297277 221.65 ISA STUDY GUIDE 010.4420.5501 U.S. BANK135 04/21/2023 297277 345.00 ISA EXAM, DUES 010.4420.5501 U.S. BANK136 04/21/2023 297277 57.65 FATTE'S PIZZA-STAFF MEETING 010.4421.5255 U.S. BANK137 04/21/2023 297277 180.00 NRPA MEMBERSHIP 010.4421.5503 U.S. BANK138 04/21/2023 297277 344.78 PICKLEBALL CENTRAL-PICKLEBALLS 010.4424.5251 U.S. BANK139 04/21/2023 297277 14.00 AG HOME & GARDEN-EVENT SUPPLIES 010.4424.5252 U.S. BANK140 04/21/2023 297277 928.34 SPECIAL EVENT SUPPLIES-SR DANCE 010.4424.5252 U.S. BANK141 04/21/2023 297277 1,259.44 FUN EXPRESS0EGG HUNT SUPPLIES 010.4424.5252 U.S. BANK142 04/21/2023 297277 250.00 PEACHJAR-EGG HUNT 010.4424.5252 U.S. BANK143 04/21/2023 297277 340.00 CENTRAL COAST PARTY FACTORY-EGG HUNT 010.4424.5252 U.S. BANK144 04/21/2023 297277 34.17 AMAZON-ADULT BASKETBALL LEAGUE 010.4424.5257 U.S. BANK145 04/21/2023 297277 619.20 EPIC ENTERTAINMENT-EGG HUNT 010.4424.5353 U.S. BANK146 04/21/2023 297277 134.68 CHILDCARE SUPPLIES 010.4425.5255 U.S. BANK147 04/21/2023 297277 21.47 SNACK SUPPLIES 010.4425.5259 U.S. BANK148 04/21/2023 297277 13.53 POSTAGE/SHIPPING 010.4201.5208 U.S. BANK

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name149 04/21/2023 297277 $ 409.45 TOUCHSCREEN MONITOR-REYES 010.4307.5201 U.S. BANK150 04/21/2023 297277 203.25 SUPPLIES-INTOXIMETERS MOUTH PIECES 010.4203.5255 U.S. BANK151 04/21/2023 297277 4.85 PATROL SUPPLIES-KEYS FOR SIGN BOARD 010.4203.5255 U.S. BANK 152 04/21/2023 297277 1,089.92 EQUIPMENT-BALLISTIC HELMETS 010.4203.5272 U.S. BANK153 04/21/2023 297277 135.68 EQUIPMENT-BWC DOCK 010.4203.5272 U.S. BANK154 04/21/2023 297277 178.97 TRAINING-LODGING 010.4203.5501 U.S. BANK155 04/21/2023 297277 6.89 TRAINING-TOLL RD FEE 010.4203.5501 U.S. BANK156 04/21/2023 297277 1,321.27 PD-4621 MAINTENANCE 010.4203.5601 U.S. BANK157 04/21/2023 297277 42.26 SAFETY EQUIPMENT-EJECTOR ASSEMBLY 010.4203.5603 U.S. BANK158 04/21/2023 297277 140.06 EQUIP MAINT-RIFLE PARTS 010.4203.5603 U.S. BANK159 04/21/2023 297277 109.72 FUEL 010.4203.5608 U.S. BANK160 04/21/2023 297277 2,474.05 EQUIPMENT-SUPPORT SVCS-MICROPHONE 010.4204.5272 U.S. BANK161 04/21/2023 297277 1,142.95 TRAINING-LODGING 010.4204.5501 U.S. BANK162 04/21/2023 297277 369.99 TRAINING-REGISTRATION, TUITION 010.4204.5501 U.S. BANK 163 04/21/2023 297277 1,360.31 TRAINING-LODGING 010.4204.5501 U.S. BANK164 04/21/2023 297277 650.00 TRAINING-TUITION 010.4204.5501 U.S. BANK165 04/21/2023 297277 71.55 FUEL 010.4204.5608 U.S. BANK166 04/21/2023 297277 148.90 FUEL 010.4204.5608 U.S. BANK167 04/21/2023 297277 38.75 GOLDEN DONUT-VOLUNTEER SUPPLIES 010.4424.5250 U.S. BANK168 04/21/2023 297277 164.83 PUBLIC RELATIONS-BOOSTED FACEBOOK ADS 010.4101.5504 U.S. BANK169 04/21/2023 297278 382.69 PAYROLL FOR:W/E 04/02 OFFICE ASSISTANT 612.4610.5303 UNITED STAFFING ASSOC. 170 04/21/2023 297278 382.70 PAYROLL FOR:W/E 04/02 OFFICE ASSISTANT 640.4710.5303 UNITED STAFFING ASSOC. 171 04/21/2023 297279 1,350.00 SUCCESSOR AGENCY-PROF SVCS 286.4103.5303 URBAN FUTURES, INC172 04/21/2023 297280 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 MICAELA VALDEZ173 04/21/2023 297281 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 ESME VASQUEZ 174 04/21/2023 297282 11,664.56 02/23 TMD ASSESSMENT REMITTANCE 761.0000.2007 VISIT SLO CAL175 04/21/2023 297282 7,419.17 01/23 TMD ASSESSMENT REMITTANCE 761.0000.2007 VISIT SLO CAL176 04/21/2023 297282 (233.29) 02/23 TMD CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL177 04/21/2023 297282 (148.38) 01/23 TMD CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL178 04/21/2023 297283 735.00 BASKETBALL SCORER- 3/6-4/18, 49 GAMES X $15 010.4424.5352 JHADE LA PAZ179 04/21/2023 297284 40,636.33 FEDERAL WITHHOLDING: Payment 011.0000.2104 CITY OF ARROYO GRANDE180 04/21/2023 297284 11,981.28 MEDICARE: Payment 011.0000.2105 CITY OF ARROYO GRANDE181 04/21/2023 297284 48,114.58 SOCIAL SECURITY: Payment 011.0000.2105 CITY OF ARROYO GRANDE182 04/21/2023 297285 15,797.38 STATE WITHHOLDING: Payment 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT183 04/21/2023 297285 1,781.97 CASDI: Payment 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT184 04/21/2023 297286 565.60 DEPT OF CHILD SUPPORT SERVICES 011.0000.2114 CA STATE DISBURSEMENT UNIT185 04/21/2023 297287 177.07 ROTH % - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name186 04/21/2023 297287 $ 350.00 ROTH - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP187 04/21/2023 297287 866.66 DEFERRED COMPENSATION - ER: Payment 011.0000.2117 ICMA RETIREMENT CORP188 04/21/2023 297287 10,767.20 DEFERRED COMPENSATION - EE: Payment 011.0000.2117 ICMA RETIREMENT CORP189 04/21/2023 297287 3,420.63 DEFERRED COMPENSATION - EE %: Payment 011.0000.2117 ICMA RETIREMENT CORP190 04/21/2023 297288 1,134.85 PERS Employer Pick Up: Payment 011.0000.2106 PERS - RETIREMENT191 04/21/2023 297288 117.11 PERS BUYBACK - AFTER TAX: Payment 011.0000.2106 PERS - RETIREMENT192 04/21/2023 297288 46,086.96 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT193 04/21/2023 297288 34,159.46 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT194 04/21/2023 297288 (0.05) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT195 04/21/2023 297289 1,269.36 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA196 04/24/2023 297290 10.00 POSTAGE FOR METER 010.4120.5208 PITNEY BOWES BANK INC197 04/28/2023 297291 900.00 STORMWATER SAMPLING 010.4301.5303 ABALONE COAST ANALYTICAL INC198 04/28/2023 297292 240.42 TRANSLATION SVCS FOR 2022 SALES TAX ANNUAL 218.4101.5201 ALBOUM & ASSOCIATES LLC199 04/28/2023 297293 26.00 CAR WASH-PD ADMIN 010.4201.5601 BOB'S EXPRESS WASH200 04/28/2023 297293 13.00 CAR WASH-PW4 010.4301.5601 BOB'S EXPRESS WASH201 04/28/2023 297293 11.00 CAR WASH-PW16 220.4303.5601 BOB'S EXPRESS WASH202 04/28/2023 297293 13.00 CAR WASH-PW44 612.4610.5601 BOB'S EXPRESS WASH203 04/28/2023 297293 82.00 CAR WASH-PD PATROL 010.4203.5601 BOB'S EXPRESS WASH204 04/28/2023 297293 52.00 CAR WASH-PF SUPPORT SVCS 010.4204.5601 BOB'S EXPRESS WASH205 04/28/2023 297294 57.09 BLDG OFFICIAL BUSINESS CARDS 010.4212.5201 BOONE PRINTING & GRAPHICS INC 206 04/28/2023 297294 83.02 PATROL SUPPLIES-BUSINESS CARDS 010.4203.5255 BOONE PRINTING & GRAPHICS INC 207 04/28/2023 297295 12.30 LUMBER-2X4, 1X4 220.4303.5613 BURKE AND PACE OF AG, INC208 04/28/2023 297296 631.20 5.995 TON, TYPE A PAVEMENT MIX 220.4303.5613 CALPORTLAND CONSTRUCTION209 04/28/2023 297297 7.81 PW-17 V BELT 010.4420.5601 CARQUEST AUTO PARTS210 04/28/2023 297297 32.73 SOTO-ANTIFREEZE 010.4430.5601 CARQUEST AUTO PARTS211 04/28/2023 297298 65.00 04/23 REIMBURSE FOR JUIJITSU 010.4203.5501 JASON CASTILLO212 04/28/2023 297299 300.00 2023 ANNUAL MEMBERSHIP -LOCC 010.4145.5503 CHANNEL COUNTIES DIVISION213 04/28/2023 297300 199.98 ACCT#8245100960104152 PD INTERNET 010.4201.5403 CHARTER COMMUNICATIONS214 04/28/2023 297301 65.00 PW-51 REPAIR TO HYDRAULIC RAM 612.4610.5603 CONTRACTORS MAINT.SERVICE215 04/28/2023 297302 10,261.00 ECS/LASERFICHE ANNUAL RENEWAL 010.4140.5303 ECS IMAGING, INC.216 04/28/2023 297303 2,420.00 ESRI ARCGIS ANNUAL RENEWAL 010.4140.5303 ESRI217 04/28/2023 297304 709.00 (40) 50# BAGS LIME DOLOMITE-SOTO 010.4430.5605 FARM SUPPLY CO218 04/28/2023 297305 950.00 FLEET DELIVERY- 2 FORD RANGERS 010.4203.5601 FOLSOM LAKE FORD INC219 04/28/2023 297306 189.00 STRIPING PLAN 010.4301.5303 GHD INC220 04/28/2023 297306 471.25 PEDESTRIAN CROSSING IMPROVEMENTS 350.5607.7301 GHD INC 221 04/28/2023 297307 104.04 FUEL-PD 010.4203.5608 JB DEWAR, INC222 04/28/2023 297307 78.36 FUEL-PD 010.4203.5608 JB DEWAR, INC

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name223 04/28/2023 297308 $ 242.75 04/14 FIELD TRIP TRANSPORTATION 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST224 04/28/2023 297309 116.35 BATTERIES, LED BULBS 010.4213.5604 MINER'S ACE HARDWARE, INC225 04/28/2023 297309 38.75 KEY STEM, LOOSE KEY HANDLE, SILLCOCK KEY 010.4213.5604 MINER'S ACE HARDWARE, INC226 04/28/2023 297309 30.42 SOTO-VALVE KEY, WD40, PIPE CUTTER 010.4430.5605 MINER'S ACE HARDWARE, INC227 04/28/2023 297309 10.97 ROLLER FRAME & COVER 220.4303.5603 MINER'S ACE HARDWARE, INC228 04/28/2023 297309 21.53 SCRAPER 220.4303.5613 MINER'S ACE HARDWARE, INC229 04/28/2023 297310 4,736.03 MAP CHECKING SERVICES 010.4301.5303 MNS ENGINEERS INC230 04/28/2023 297311 101.03 REPAIR CHAIN SAW-SPARKPLUG, HOSE, LABOR 010.4430.5603 NOBLE SAW, INC 231 04/28/2023 297312 85.00 PRE-EMPLYMT MEDICAL TESTING 010.4425.5315 PACIFIC CENTRAL COAST HEALTH232 04/28/2023 297313 39.50 UNIFORM CLEANING-PD ADMIN 010.4201.5303 PARAMOUNT CLEANERS233 04/28/2023 297313 395.50 UNIFORM CLEANING-PATROL SVCS 010.4203.5303 PARAMOUNT CLEANERS 234 04/28/2023 297313 62.50 UNIFORM CLEANING-PD SUPPORT SVCS 010.4204.5303 PARAMOUNT CLEANERS235 04/28/2023 297314 200.00 03/23 PARKING CITATION PROCESS 010.4204.5303 PHOENIX GROUP236 04/28/2023 297315 23.54 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY237 04/28/2023 297315 15.95 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY238 04/28/2023 297315 34.76 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY239 04/28/2023 297315 22.22 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY240 04/28/2023 297315 32.85 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY 241 04/28/2023 297315 22.22 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY242 04/28/2023 297315 44.22 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY243 04/28/2023 297316 5.38 WATER FOR COUNCIL CHAMBERS 010.4213.5303 READYREFRESH BY NESTLE244 04/28/2023 297317 15.00 03/23 REVERSE OSMOSIS RENTAL 010.4201.5303 RICHETTI COMPLETE WATER245 04/28/2023 297318 46.00 TRAINING TUITION 010.4203.5501 SAN DIEGO MIRAMAR COLLEGE246 04/28/2023 297319 7,200.00 STREET SWEEPING JAN-JUN 2023 220.4303.5303 SCA247 04/28/2023 297319 2,700.00 STREET SWEEPING JAN-JUN 2023 010.4307.5303 SCA248 04/28/2023 297320 38.40 HUNTER I-20 ROTOR W/CK VALVE 010.4420.5255 SITEONE LANDSCAPE SUPPLY LLC249 04/28/2023 297320 17.49 HUNTER PRO 12" POP UP 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC250 04/28/2023 297320 146.10 SOTO-REPAIR KIT, SOLENOID 010.4430.5605 SITEONE LANDSCAPE SUPPLY LLC251 04/28/2023 297320 297.65 (2) LATCHING SOLENOIDS, (2) HERBICIDE 220.4303.5255 SITEONE LANDSCAPE SUPPLY LLC252 04/28/2023 297321 269.00 03/23 PARKING CITATION REV DIS 010.0000.4203 SLO COUNTY AUDITOR-CONTROLLER253 04/28/2023 297322 3,019.21 TRITECH CAD BILLING 010.4204.5606 SLO COUNTY SHERIFF'S DEPT254 04/28/2023 297323 15.99 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS255 04/28/2023 297324 1,000.00 ANNUAL CHAMBER MEMBERSHIP-GOLD 010.4145.5503 SOUTH COUNTY CHAMBERS256 04/28/2023 297325 90.00 T-3 CERTIFICATION RENEWAL 640.4712.5501 SWRCB-DWOCP257 04/28/2023 297326 119.30 (2) RESHEET CITY SIGNS-RANCHO, STROTHER 010.4420.5605 TRAFFIC MANAGEMENT PRODUCTS 258 04/28/2023 297326 1,930.50 (120) 50# BAGS ASPHALT COLD PATCH 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTS 259 04/28/2023 297327 550.00 EDEN UB ALLOTMENT ADJUSTMENT REBILL 640.4710.5303 TYLER TECHNOLOGIES INC

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 16 - APRIL 30, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name260 04/28/2023 297328 $ 18,918.25 03/23 TBID SOCIAL MEDIA MARKET 240.4150.5301 VERDIN MARKETING INK261 04/28/2023 297329 304.08 ACCT#472480460-00002 CITY IPAD 010.4145.5403 VERIZON WIRELESS262 04/28/2023 297329 858.60 ACCT#208620661-00002 PD CELL PHONES 010.4201.5403 VERIZON WIRELESS263 04/28/2023 297330 3,269.60 FATS, OILS AND GREASE PROGRAM 612.4610.5303 WALLACE GROUP A CALIF CORP264 04/28/2023 297331 462.00 SOTO RESTROOM-REPLACED FLUSHOMETER 010.4213.5303 WATERBOYS PLUMBING265 04/28/2023 297332 564.59 COPY MACHINE LEASE PYMT 010.4201.5803 WELLS FARGO VENDOR FINANCIAL266 04/28/2023 297333 13.45 UB Refund Cst #00026393 640.0000.2301 NAWAR BISHARD267 04/28/2023 297334 90.49 UB Refund Cst #00028239 640.0000.2301 KAREN BROWN268 04/28/2023 297335 57.63 UB Refund Cst #00028491 640.0000.2301 MICHAEL R COYKENDAL269 04/28/2023 297336 134.31 UB Refund Cst #00027852 640.0000.2301 ANDREA DARNELL270 04/28/2023 297337 49.72 UB Refund Cst #00024090 640.0000.2301 FRANK & JOANN SOSA271 04/28/2023 297338 678.92 AFLAC PRE TAX: Payment 011.0000.2126 AFLAC INSURANCE272 04/28/2023 297339 3,078.55 POLICE DEPT DUES: Payment 011.0000.2116 ARROYO GRANDE POLICE ASSN273 04/28/2023 297340 3,740.00 AG CAREER FIREFIGHTERS ASSN: Payment 011.0000.2115 FIVE CITIES PROF. FIREFIGHTERS274 04/28/2023 297341 43.90 PRE-PAID LEGAL SERVICES: Payment 011.0000.2125 LEGALSHIELD275 04/28/2023 297342 1,262.12 SEIU DUES: Payment 011.0000.2118 S.E.I.U. LOCAL 620 $ 501,806.29

ATTACHMENT 2
.

General Fund 340,350.25 5101 Salaries Full time 222,363.87 Streets Fund 14,812.02 5101 Volunteer Employee Retirement - Sewer Fund 9,588.97 5102 Salaries Part-Time - PPT 3,455.65 Water Fund 27,747.97 5103 Salaries Part-Time - TPT 19,609.02 392,499.21 5105 Salaries OverTime 11,260.95
5106 Salaries Strike Team OT -
5107 Salaries Standby 1,692.60
5108 Holiday Pay 757.92
5109 Sick Pay 3,919.54
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 9,901.54 5113 Vacation Pay 6,899.78
Public Works - Maintenance 304.75 5114 Comp Pay 3,078.61 Public Works - Enterprise 1,054.66 5115 Annual Leave Pay 13,828.12 Recreation - Administration - 5116 Salaries - Police FTO 352.32 Recreation - Special Events - 5121 PERS Retirement 29,824.44 Children In Motion - 5122 Social Security 20,252.69
5123 PARS Retirement 242.08 11,260.95
5126 State Disability Ins. 824.20
5127 Deferred Compensation 741.66
5131 Health Insurance 46,674.51
5132 Dental Insurance 2,720.72
5133 Vision Insurance 734.86
5134 Life Insurance 382.93
5135 Long Term Disability 605.82
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance 837.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 194.42
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,095.00
392,499.21
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
03/31/2023 - 04/13/2023
4/21/2023

BY FUND BY ACCOUNT

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
DATE: May 23, 2023
SUMMARY OF ACTION:

Consider and file the Fiscal Year (FY) 2022-23 Third Quarter Financial Status Report and approve four Budget Adjustment Requests.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Preparation of the Third Quarter Financial Status Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the third quarter, FY 2022-23 revenues for the General Fund were $14.1 million, or one percent (1%), higher the Budget Target (“Target”). Actual Expenditures were $15.8 million, and below the Budget Target by approximately $2.6 million, or eleven percent (11%).

Council is being asked to approve four budget adjustments. The overall impact to the budget is an increase in General Fund expenditures of $378,734 and in Water Availability Fund expenditures of $20,000, as reflected in the following table:

RECOMMENDATION:

Receive, consider, and file the FY 2022-23 Third Quarter Financial Status Report; and approve four Budget Adjustment Requests.

Request
Original
Budget
Q3 BA
Requested
Updated
Budgeted Total
General
Fund Impact
Water Availability
Fund Impact
FCFA UAL Payment 550,000 337,401 887,401 337,401
Utility Bed increased Cost for PW Truck 61,000 18,433 79,433 18,433 - Cash for Grass Program 100,000 20,000 120,000 - 20,000
November 2022 Election Increased Cost 30,000 22,830 52,830 22,900 - Totals 741,000 398,664 1,139,664 378,734 20,000

Item 9.b.

City Council
Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
May 23, 2023

BACKGROUND:

Each fiscal year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The Third Quarter Financial Status Report is the third of four financial performance reports that staff will present to Council during the 2022-23 fiscal year. The purpose of the FY 2022-23 Third Quarter Financial Status Report is to:
 Compare third quarter revenues received and expenditures incurred to the third quarter of the prior year and to the budgeted Target to determine the City’s financial performance;
 Provide explanations for key account variances and identify any potential trends that might impact financial planning; and
 Provide other key third quarter information including headcount statistics, Capital Improvement Projects status, and requests for City Council approval of Budget Adjustment Requests that have not previously been approved.

The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted Target. The Target for expenditures is calculated as three fourths (75%) of the FY 2022-23 Budget and represents the 9-month period from July 2022 through March 2023, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increases the expenditure Target from 75% to 78% for the third quarter. The Target for revenues does not use the 75% Target but a Target of 65.8% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter.

The Third Quarter Report also includes a section regarding Budget Adjustments Requests. This section summarizes individual budget adjustments approved by the City Council during the third quarter, as well as administrative adjustments completed by City staff. Additionally, this section of the report includes new Budget Adjustment Requests not otherwise addressed in individual City Council agenda items that staff recommends Council approve to enable the City to complete important work items and meet the needs of the community.

ANALYSIS OF ISSUES:

Third Quarter (Q3) Revenue and Expenditures Compared to Prior Year

Item 9.b.

City Council
Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
May 23, 2023

Current Year Q3 Actuals Compared to Prior Year Q3 Actuals The General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. General Fund revenues at the third quarter of this year were approximately $540,826 higher than the third quarter of the prior year. Expenditures were approximately $2.6 million higher at the end of the third quarter of the current fiscal year versus the third quarter of the prior year. A more thorough explanation of third quarter variances is set forth in the attached financial report. The following is a summary of the third quarter variances between the two fiscal years.

Revenue (approximately $540,826 higher)
The majority of the $540,826 variance between the third quarter of this year and the prior third quarter is related to the increase in Sales Tax received in the third quarter of FY 2022-23 when compared to the third quarter of FY 2021-22.

Expenditures (approximately $2.6 million higher)
As mentioned, third quarter expenditures compared to the prior year were higher by $2.6 million. The majority of the variance between the two fiscal quarters is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation. Additionally, the Employee Retention Incentive Program increased expenditures in FY 2022-23 compared to the prior year.

Third Quarter (Q3) Revenue and Expenditures Compared to Target Current Year Q3 Actuals Compared to Target
The table above compares third quarter actual results to the budgeted Target. Third Quarter actual revenue was above the Target by $219,003. Third Quarter actual expenditures were short of the Target by approximately $2.6 million. The following is a summary of the third quarter revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of third quarter variances is set forth in the attached financial report.

Third Quarter
FY 2022-23
Third Quarter
FY 2021-22 Variance
Revenue $ 14,119,614 $ 13,578,788 $ 540,826
Expenditures $ 15,861,492 $ 13,178,274 $ 2,683,218
General Fund
FY 2022-23
Third Quarter Target
FY 2022-23
Third Quarter Actuals Variance
Revenue $ 13,900,611 $ 14,119,614 $ 219,003
Expenditures $ 18,475,701 $ 15,861,492 $(2,614,209)
General Fund

Item 9.b.

City Council
Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
May 23, 2023

Revenue ($219,003 higher)
The actual third quarter General Fund revenue is more than the budgeted Target by $219,000. Property Tax, Sales Tax and Transient Occupancy Tax are all trending to show positive results when compared to the Target through the third quarter. Some of the larger revenue variances are explained below.
 The largest single source of City revenue is Secured Property Tax. Secured Property Tax is billed by the County to property owners and payable in two (2) installments. Property owners typically receive their second property tax bill at the end of September or early October, with a due date of November 1st. Most of the property tax related to the first installment was received in December 2022. The second installment is due on April 1st and will be reflected in the fourth quarter report. The revenue Target includes the equivalent of eight months of property tax revenue, actuals were higher than this revenue assumption by $233,467.  Sales tax realization through third quarter is 6% higher than the target. Actual sales tax revenue above target through third quarter was $298,700 and represents seven months of payments (Jul – Feb).
 Transient Occupancy Tax (TOT) revenue reflects a $125,875 favorable variance to the Target. The Target and actual TOT revenue represents only eight months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments.
 Other revenue is made up of Business License Tax, Fines, Intergovernmental Income, Other Charges for Service, and Other Revenues. The actual revenue in this category is lower than the Target by $504,657. The largest variance in this grouping is related to the anticipated revenue from the sale of the police fleet that will be received in Q4 after the new Police Explorers are outfitted and ready for use.

Expenditures (approximately $2.6 million lower)
Actual third quarter expenditures were $2,614,209 under the Target. All of the City’s departments are under their spending Targets. Some of the more significant savings occurred in the Police, Administrative Services, Public Works, and Community Development Departments. The third quarter report provided in Attachment 1 includes greater detail regarding the causes for the expenditure variances in these departments.

Budget Adjustments
Staff identified four line items for consideration of reallocation through budget adjustment approval, as described in more detail below:
 $337,401 Administrative Services Department: The Non-Departmental Division budget includes $550,000 for funding as a true-up payment to the Five Cities Fire Authority (FCFA) for the City’s share of accrued actuarial liability for employees who worked for the City before the FCFA was formed. The FCFA was formed in July 2010 as a Joint Powers Authority. At that time, the FCFA became the

Item 9.b.

City Council
Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
May 23, 2023

employer for fire safety personnel previously employed by its member agencies.

The City of Grover Beach and the Oceano Community Services District retained the CalPERS liabilities for the past service of their employees. No new CalPERS plan was created for the FCFA and, instead, all FCFA employees have been covered under the City of Arroyo Grande’s CalPERS pension plans. As a result, the City’s CalPERS plans include liabilities for employees and retirees of the City and of FCFA. Since the JPA was formed, FCFA has paid the full costs of the City’s Fire Safety CalPERS plans. As a result, the FCFA has been paying the CalPERS liabilities of City of Arroyo Grande employees that were incurred before the FCFA was formed. The FCFA retained the actuarial firm Foster & Foster to calculate the actuarial accrued liability (AAL) for each person in the Fire Safety Classic tier, mirroring CalPERS actuarial valuation methods and assumptions.

The actual cost the City owes FCFA is $887,401, which is $337,401 more than is currently budgeted. It is requested that the City Council approve a budget adjustment in the amount of $337,401 from the General Fund balance to appropriate sufficient funds for the City to pay the total amount owed to the FCFA for its past CalPERS payments on behalf of Arroyo Grande fire personnel employed by the City prior to formation of the Authority.  $18,433 Public Works Department: The Public Works Governmental Building Division budgeted $61,000 for a 3/4 Ton Pickup with Utility Bed. Vehicle and Equipment costs continue to increase with supply chain issues continuing to play a factor when replacing equipment. The truck has been received; however, the cost for the utility bed has increased from the original estimate. Therefore, the Department is requesting an additional amount of $18,433 to outfit the Utility Bed of the Pickup Truck.
 $20,000 Public Works Department: The Public Utilities is requesting to increase its Water Availability Rebates budget by $20,000 to continue to offer the Cash for Grass program to residents. This increase is based on direction provided by Council at the March 28, 2023, meeting when the Stage 1 Water Shortage Emergency was rescinded to continue to encourage water conservation for the community.  $22,830 Legislative & Information Services Department: The Legislative & Information Services Department received the final invoice from the County ClerkRecorder related to the November 2022 election totaling $52,829.13. This is substantially more than the $30,000 originally budgeted. The County ClerkRecorder's Office stated the increase in cost for the election is due to additional mandated requirements, such as sending every voter a vote-by-mail ballot, City

Item 9.b.

City Council
Consideration of Fiscal Year 2022-23 Third Quarter Status Report and Request to Approve Four Budget Adjustment Requests
May 23, 2023

Council Districts, as well as general increases in the cost of supplies, postage, and labor.

ALTERNATIVES:

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

1. Receive and file the Fiscal Year 2022-23 Third Quarter Financial Status Report and approve four Budget Adjustment Requests;

2. Provide other direction to staff regarding the FY 2022-23 Third Quarter Financial Status Report and the four Budget Adjustment Requests;

3. Receive and file the FY 2022-23 Third Quarter Financial Status Report and do not approve the Budget Adjustment Requests and provide further direction to staff; or

4. Provide other direction to staff.

ADVANTAGES:

The financial report presents an updated review of the City’s financial performance in the third quarter of FY 2022-23. Approval of the requested budget adjustments will enable staff to continue providing high quality services to the organization and to the public.

DISADVANTAGES:

No disadvantages have been identified 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. Fiscal Year 2022-23 Third Quarter Financial Status Report

ATTACHMENT 1

City of Arroyo Grande
Fiscal Year 2022-23
Third Quarter Financial Status Report

INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the third quarter of Fiscal Year (FY) 2022-23. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the third quarter of the fiscal year and compare actual results to the prior year and the budgeted Target, to determine the City’s performance. The third quarter timeframe is July 1 through March 31, 2023.

The financial report is organized in the following sections:

Section 1 – an overview of City’s financial position at the end of the third quarter of the FY 2022-23. This includes a comparison of third quarter results between the current and prior year. In addition, third quarter results will be compared to the budgeted Target. As part of the analysis, brief explanations of significant revenue and expenditure variances are included.

Section 2 – a listing of any personnel changes occurring during the third quarter and a summary of headcount by
department. This section also includes the City’s calculated vacancy rate.

Section 3 – an update on the Capital Improvement Projects (CIP) managed by the Public Works and Community
Development Departments. This section includes CIP that were completed in the third quarter along with their final costs.

Section 4 – a listing of Budget Amendment Requests previously approved by Council and completed in the third quarter, as well as a list of additional budget adjustments that are being presented to Council along with the third quarter report for consideration and approval.

ENSURING FISCAL
STABILITY:

In Fall 2020, the City Council
established a goal to ensure
financial stability for the
organization throughout the
planning, budgeting, and
expenditure process, including
preparation and presentation
of year-end and quarterly
financial reports.

ATTACHMENT 1

SECTION 1: OVERVIEW OF FINANCIAL POSITION

CITY FUND STRUCTURE
The overall City budget is comprised of many individual funds, which are categorized below. This financial report will focus primarily on the General Fund but will also report on all Governmental Funds.

General Fund – The General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government.

Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Debt Service Funds – This fund is used to account for the accumulation of resources and payment of longterm debt principal interest. This includes the USDA loan issued by the City to finance the relocation of City Hall.

Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund with financial statements separate from all other governmental activities. These funds include Water and Sewer services provided to City residents.

Private Purpose Fund – The private-purpose fund was created to hold the assets of the former Redevelopment Agency of the City of Arroyo Grande until they are distributed.

Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there are three Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The second is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants within the boundaries of the Parking and Business Improvement Area for maintenance of the Village parking lots. The third is the San Luis Obispo Tourism Marketing District (SLOTMD) Fund, which accounts for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD.

The following chart below shows an overview of the City’s fund structure.

Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking Administrative Services Public Access Television Sewer Facility Sanitation Distribution Community Development Police Protection Impact Water San Luis Obispo Tourism Police Department Park Development Water Facility Marketing District Recreation Services Park Improvement Lopez Water (SLOTMD) Public Works Recreation Community Center
Grace Lane Assessment District
Local Sales Tax Fund
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.

Water Availability
CDBG Grant Fund
American Rescue Plan Act (ARPA)
State COPS Block Grant Agency Funds Special Revenue Funds

GOVERNMENTAL FUNDS FIDUCIARY FUNDS

ALL FUNDS
PROPRIETORY FUNDS General Fund Debt Service Funds Enterprise Funds Private Purpose Fund

ATTACHMENT 1

CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the third quarter of FY 2022- 23 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s General Fund. The totals in the table reflect the third quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget.

Table 1
The following discussion focuses on both the City’s Governmental Funds and the General Fund and provides a comparison between third quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and General Fund revenue and expenditures for the third quarter of this year are generally higher than the prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the General Fund.

Governmental Funds – At the end of the third quarter of FY 2022-23, Governmental Fund revenue was 12.2%, or $2.3 million higher than prior year, and expenditures were higher by 20.7% or $3.1 million.

The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the General Fund and the newly created American Rescue Plan Act (ARPA) Fund, which is separate from the General Fund and not otherwise addressed in this report. The Governmental Funds category includes the General Fund as well as other Special Revenue Funds. The General Fund and ARPA Fund variances are explained as follows:

General Fund - The General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. General Fund revenue in the third quarter was 4%, or $540,826 higher than the third quarter of the prior year. Expenditures increased by 20.4% or $2.7 million higher than the third quarter of the prior year. The majority of the variance between the two fiscal quarters is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation. Additionally, the Employee Retention Incentive Program increased expenditures in FY 2022-23 compared to the prior year.

Third Quarter
FY 2022-23
Third Quarter
FY 2021-22 Variance
Revenue $ 21,556,870 $ 19,216,446 $ 2,340,424
Expenditures $ 18,066,687 $ 14,970,655 $ 3,096,032
Third Quarter
FY 2022-23
Third Quarter
FY 2021-22 Variance
Revenue $ 14,119,614 $ 13,578,788 $ 540,826
Expenditures $ 15,861,492 $ 13,178,274 $ 2,683,218
Governmental Funds
General Fund Page 28 of 569
ATTACHMENT 1

ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures incurred totaled $604,246, the remaining $3,695,996.22 is currently recognized as revenue in FY 2022-23.

GENERAL FUND IMPACTS
The following discussion focuses on the City’s General Fund performance. Chart 1 starts off with a simple overview of General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2022-23 third quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of General Fund revenue is included, which compares third quarter actual results to the Target (Table 4).

Using the Target as a comparator against actual results provides a simplified method to evaluate performance for quarter. The Target for revenues does not use the 75% Target but a Target of 65.8% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year.

Revenue realization is typically low at the end of the third quarter of the fiscal year due to the timing of receipt of major tax revenues, the time lag involved in billing cycles, and the receipt of reimbursements.

The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted Target. The Target
for expenditures is calculated as
three-fourths (75%) of the FY
2022-23 Budget and represents
the 9-month period from July
2022 through March 2023, except
for the Non-Departmental Annual
Payments line that has a Target of
the full budget. This approach
increased the Target from 75% to
78% for the third quarter.

Chart 1
Chart 1 shows a simple
comparison of actual third quarter revenue and expenditures to the Target. The actual third quarter General Fund revenue is more than the budgeted Target by $219,000. Property Tax, Sales Tax and Transient Occupancy Tax are all trending to show positive results when compared to the Target through the third quarter. Actual expenditures through third quarter totaled $15.9 million, or 67% of the full year’s Budget, and are under the Target by $2.6 million. A more detailed discussion on General Fund revenue and expenditure variances is included later in this report.

ATTACHMENT 1

Table 2
Table 2 reflects major expenditure cost
categories within the General Fund. This chart is
intended to explain where the City’s resources
were spent during the third quarter. Within the
total expenditures of $15.9 million, 61.3% of the
City’s costs are associated with personnel, 34.1%
with operating and maintenance, 1.9% for the
City’s debt service, 1.8% for Capital Outlay, and

0.9% with transfers to other funds.

Table 3 reflects the third quarter status of all General Fund operating departments. Some departments include multiple divisions. The divisions are consolidated under their respective department, rather than reflected individually within the table.

Table 3 – General Fund Expenditures by Department
Overall, third quarter expenditures were $2,614,209 under the Target. Though all City departments were under their spending Targets, some of the more significant savings occurred in the Non-Departmental Annual Payments, Police, Public Works, and Community Development Departments. The third quarter Target is based on nine months or 75%, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This line includes the City’s Unfunded Accrued Liability (UAL) retirement payment and the General and Liability Insurance payment. A more detailed explanation of key expenditure variances by individual department/division is provided below.

KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2022-23
The Administrative Services Department includes the
City’s Fiscal as well as Information Technology
functions. The annual CalPERS UAL retirement payment
was budgeted at $1,856,772 but the actual expenditure
was $1,319,522. This budget also includes funding for a true-up payment to the Five Cities Fire Authority (FCFA) totaling an estimated $550,000 ($50,000 per year for 10 years + $50,000 for FY 2022-23) for the City’s City Administration $ 1,355,056 $ 1,016,292 $ 711,873 $ 304,419 22% Legislative & Information Services 496,875 372,656 268,483 104,173 21% Administration Services 6,239,729 4,679,797 4,650,485 29,312 0% Non-Departmental Annual Payments 3,218,631 3,218,631 2,685,301 533,330 17% Community Development 2,099,600 1,574,700 1,242,079 332,621 16% Police Department 6,543,934 4,907,951 4,156,148 751,803 11% Recreation Services 1,230,500 922,875 782,381 140,494 11% Public Works 2,377,065 1,782,799 1,364,741 418,058 18%
TOTAL EXPEDITURES 23,561,390 18,475,701 15,861,491 2,614,210 11% %
Fav/(Unfav)
General Fund Department Variances - Third Quarter
General Fund Department
2022-23 Budget
2022-23 Q3
Actuals
Dollar
Fav/(Unfav)
2022-23 Q3
Target
Department: Administrative Services
Division: 4120-Administrative Services and
4145-Non Departmental
Issue: Overall savings in Contractual Services
and CalPERS prepayment
Impact to General Fund: $562,642 savings
FY 2022-23 % of
Q3 Acutals Actuals
Personnel Costs $ 9,726,183 61.3%
Operating Costs 5,402,124 34.1%
Debt Service 300,390 1.9%
Capital Outlay 293,247 1.8%
Transfers Out 139,547 0.9%
Total $ 15,861,491
Expenditure Category

ATTACHMENT 1

share of accrued actuarial liability for employees who worked for the City before the FCFA was formed.

No new CalPERS plan was created for the FCFA and instead all FCFA employees have been covered under the City of Arroyo Grande’s CalPERS pension plans. As a result, the City’s CalPERS plans include liabilities for employees and retirees of the City and of FCFA. Since the JPA was formed, FCFA has paid the full costs of the City’s Fire Safety CalPERS plans. As a result, the FCFA has been paying the CalPERS liabilities of City of Arroyo Grande employees that were incurred before the FCFA was formed. The City will be required to pay back these amounts as part of the unwinding process contemplated in the Third Amendment to the JPA. The final results of the Actuarial Analysis has been completed and will be discussed in Section 4:

Budget Adjustment Requests for the Third Quarter.

Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
 The Police Department has $247,300 budgeted for vehicle replacement for a Ford Ranger Crew Cab, Ford F250, and Ford Transit Van. With vehicle order delays from the manufacture, none of these vehicles have arrived, creating a variance of approximately $90,400.  The Police Department currently has one vacancy, one medical leave, and has had filled position vacancies with successive promotions throughout the first half of the fiscal year, resulting in labor savings of approximately $496,000.
 The contract with the County Sheriff Department for dispatch services is paid semiannually in the months of February and June. Payments for these services will not be made until the third and fourth quarters, resulting in a third quarter favorable variance to the Target of $111,400.

The Public Works Department includes the functions of
Government Buildings, Auto Shop, Administration, Park
Maintenance, and Soto Sports Complex Divisions within
the General Fund. The majority of the favorable
variance in this department can be attributed to salary savings and lower spending in contractual services. For simplicity, Public Works will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
 The Government Buildings Division vehicle replacement payment for the 3/4 Ton Pickup with Utility Bed will not be paid until the City receives the equipment later this fiscal year, resulting in a favorable variance of $45,750.
 The Public Works Administration Division currently has a vacant Assistant Capital Projects Manager position in the third quarter resulting in labor savings of approximately $199,800.  The amount billed by PG&E for electricity charges through the third quarter was lower than anticipated resulting in a third quarter favorable variance of $18,100.  Minimal contractual services for the Public Works Administration Division were incurred through third quarter resulting in $44,522 of favorability to the Target. The following table will summarize where these savings occurred:

Department: Police Services
Division: Various (4201, 4203, 4204, 4209)
Issue: Overall savings in salaries and
benefits
Impact to General Fund: $751,803 savings
Department: Public Works
Division: Various (4213, 4305, 4307, 4420,
4430)
Issue: Overall savings in salaries and
contractual services
Impact to General Fund: $418,058 savings

ATTACHMENT 1

 The vacancy of the Maintenance Worker position in the Parks Maintenance division in the third quarter resulted in labor savings of approximately $62,900.  The Parks Maintenance Division equipment replacement payment for the Riding Lawn Mower that is being delayed until FY 2024-25 and a portion of the Wood Chipper will not be paid until the City receives the equipment later this fiscal year, resulting in a favorable variance of $50,250.

The Community Development Department includes the
functions of Planning, Engineering, and Building &
Safety Divisions. The majority of the favorable variance in this department can be attributed to salary savings
and lower spending in contractual services. Salary
savings within Community Development is attributed to several staffing variances that occurred through the third quarter of the fiscal year and include:
 The Planning Division filled position vacancies with successive promotions throughout the first half of the fiscal year, resulting in labor savings of approximately $106,500.  Minimal contractual services for the Planning Division were incurred through third quarter resulting in $118,713 of favorability to the Target. The following table will summarize where these savings occurred:
 The City Engineer and Engineering intern positions were vacant in the third quarter resulting in a favorable variance of $55,200.
 The Building Division contractual services has a variance of $45,300 related to the timing of invoices from BPR, the City’s building services contractor. The March invoice was not received until April resulting in a favorable variance.

PW Administration Services Budget Target Expenditures Variance Street sweeping services 28,800 21,600 18,900 2,700
Traffic signal services 43,000 32,250 11,445 20,805
Facility Dude Annual Fee 1,000 750 - 750
CIP Consultant Services 7,000 5,250 - 5,250
Charter Communication 600 450 433 17
Misc. consultant services 20,000 15,000 - 15,000
100,400 75,300 30,778 44,522
Budget Target Expenditures Variance
100,000 75,000 - 75,000
50,000 37,500 - 37,500
30,000 22,500 16,288 6,212
180,000 135,000 16,288 118,712
On-Call Planning Services and Misc. Planning Studies
On-Call Environmental Review Services
Comprehensive General Plan Update
Planning Contractual Services
Department: Community Development
Division: Various (4301, 4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to General Fund: $332,621 savings

ATTACHMENT 1

KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – General Fund Revenue
As reflected in Table 4, third quarter actual revenue was higher than the Target by $219,003. This table uses a Target of 65.8% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Property Tax, Sales Tax and Transient Occupancy Tax are all trending to show positive results when compared to the Target through the third quarter. A more detailed discussion is included below to help explain actual revenue variances through third quarter compared to the Target.

Property Tax –The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their second property tax bill at the end of September or early October, with a due date of November 1st. Most of the property tax related to the first installment was received in December 2022. The second property tax bill installment is received in April 2023 and will be included in the fourth quarter report. Property tax typically represents around 29% of the City’s annual revenue. The Target is based on eight months of Property Tax revenue. Actual revenue received in this category was higher than this Target in part because many taxpayers made the full payment in December.

Sales Tax – Salestax realization through third quarteris 6% higher than the target. Actual sales tax revenue received through third quarter was $3,058,085 and represents seven months of payments (Jul – Feb). The Target is also based on seven months of revenue, taking into account the timing of anticipated payments.

Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $125,875 favorable variance to the Target.

The Target and actual TOT revenue represents eight months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments.

Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). The Target for this revenue is 50% at the end of the third quarter of the fiscal year.

Property Tax $ 6,079,509 $ 4,053,006 4,286,473 $ 233,467 4% Sales Tax 4,730,375 $ 2,759,385 3,058,085 298,700 6%
Transient Occ. Tax 1,300,000 $ 866,667 992,542 125,874 10% Property Tax in Lieu of VLF 1,933,600 $ 966,800 1,007,376 40,576 2% Franchise Fees 703,900 $ 469,267 395,336 (73,931) -11%
License & Permit Fees 431,100 $ 323,325 394,110 70,785 16% User Fees 536,800 $ 402,600 502,203 99,603 19%
Planning Fees 353,700 $ 265,275 301,129 35,854 10%
Recreation Fees 822,610 $ 616,958 553,189 (63,769) -8%
Transfers In 3,012,700 $ 2,259,525 2,216,025 (43,500) -1% Other Revenue 1,223,738 $ 917,804 413,147 (504,657) -41% TOTAL 21,128,032 $ 13,900,612 14,119,615 219,003 1%
General Fund Revenue Variances - Third Quarter
REVENUE BY CATEGORY 2022-23
Budget
FY 2022-23
Q3 Actuals
Dollar
(Unfav)/Fav
FY 2022-23
Q3 Target % Fav/(Unfav)

ATTACHMENT 1

Franchise Fees – Only eight months of South County Sanitary (Waste Connection) franchise fees were received through the third quarter. In addition, Charter Communications franchise fees earned in the third quarter will not be paid and received until the third quarter. In light of the timing of payments, the Target is based on 8 months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the third quarter is lower than the Target by $73,931.

License & Permit Fees and Planning Fees– License and permit revenue is above the Target by $70,785.

Planning revenue exceeded the Target by $35,854. The Target is based on 75% or 9 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand.

Recreation Fees– Recreation revenue fell short of the Target by $63,769. The Target is based on 9 months of the fiscal year’s total budget.

Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the general fund.

The largest variance in this category is related to three revenue accounts. The expense recovery for police vehicles revenue related to the sale of surplus Police Patrol vehicles has not taken place since the new leased vehicles have not yet been received. This results in a revenue shortfall of approximately $290,250.

The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the general plan update. Once these funds are spent for this project, the revenue will be recognized at that time, resulting in a revenue shortfall to the Target of approximately $125,000. The revenue from Office of Traffic Safety Grant for Police is a reimbursable grant. A reimbursement for approximately $108,900 was submitted in April and is anticipated to be received before the end of the fiscal year and should correct the variance related to this specific grant.

ATTACHMENT 1

SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (2nd Quarter) None made during this quarter.

FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY The following table reflects FTE staffing by department. The table only includes permanent staff and does not include part-time or temporary staffing. While departments may hire part-time staff on a regular or seasonal basis, they are not included in the analysis below.

EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the third quarter of FY 2022-23 was 7.7%. This equates to six (6) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.

Department
Adopted Budget
Headcount (FTE’s)
Vacancies
(3rd Qtr)
% of
Total Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 1 9% IT Manager
Community Development 10 2 13% City Engineer and Permit Tech.

Legislative & Info Services 2 - 3%
Police Services 29 1 37% Police Officer
Public Works 24 2 31% Maintenance Worker and Assistant Capital Projects Manager
Recreation Services 3 - 4%
Total 78 6 100%

ATTACHMENT 1

SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP).

Project
Number Project Fund
Budget
FY 2022-23*
Current
Status
Project Budget
Expended
350-5564 Elm St. Park Playground Structure
State
Grant/Donations/Park
Improvement/Sales Tax $ 280,703 Completed $ 250,372
350-5607 Pedestrian Crossing Enhancements HSIP/RSHA $ 370,977 Completed $ 328,456 350-5795
Oak Park Boulevard / El Camino Real
Storm Drain System ARPA $ 384,570 Completed $ 218,382
612-5821
Trenchless Sewer Rehabilitation -
Wood, Sandalwood, Cameron,
Woodland Backyards ARPA $ 246,777 Completed $ 145,111
350-5797
Storm Drain System at 251 East Grand
Avenue ARPA $ 14,731 Completed $ 3,176
350-5515 Various Park Renovations Park Improvement $ 43,418 In Progress $ 31,761 350-5563
Citywide Trash/Recycle Receptacle
Replacement Park Improvement $ 1,582 In Progress $ -
350-5565 Soto Sports Complex Fencing Repairs Park Improvement $ 17,952 In Progress $ 11,250 350-5612
Systematic Safety Analysis Report
Program (SSARP) General $ 2,664 In Progress $ -
350-5614 Bridge Street Bridge Habitat Mitigation HBP $ 48,628 In Progress $ 49,971 350-5620 Swinging Bridge Rehabilitation Sales Tax $ 1,160,474 In Progress $ 24,387 350-5658 Sidewalk Repairs and Improvements Sales Tax/CDBG $ 205,924 In Progress $ 50,258 350-5679 Traffic Way Bridge Replacement HBP/Sales Tax $ 629,030 In Progress $ 85,369 350-5463 Woman's Club Improvements Sales Tax/Donations $ 4,367 In Progress $ 1,345 350-5473 Replacement Generator at Station 1
Other Gov
Agencies/General/Sales
Tax $ 660,911 In Progress $ 36,647
350-5474
Fuel Management System/Dispenser
Replacement
General/Sewer/Water/
Sales Tax $ 64,350 In Progress $ 33,333
350-5540 Central Irrigation Controls Park Improvement $ 15,000 In Progress $ 5,253 350-5559 ADA Drinking Fountains Park Improvement $ 12,484 In Progress $ - 350-5681
Fair Oaks/Halcyon Road Traffic Signal
Update Traffic Signalization $ 40,000 In Progress $ 14,137 640-5944 Water Well #11 Facilities Water Availability $ 42,771 In Progress $ - 640-5946 Galvanized Service Replacements Water $ 88,093 In Progress $ 20,183 640-5975 Central Coast Blue Water Availability $ 1,774,574 In Progress $ 1 350-5638 Pavement Management Program
USHA/General/SB1/Sale
s Tax $ 5,407,698 In Progress $ 717,961
612-5852 The Pike Sewer Line Replacement Sewer $ 24,977 In Progress $ - 350-5621 Arroyo Grande Creek Stabilization Sales Tax $ 40,000 In Progress $ 12,000 350-5453 Financial Management Software Sewer/Water/Sales Tax $ 225,000 In Progress $ - 350-5468 Public Safety Video Cameras COPS/Sales Tax $ 125,000 In Progress $ - 350-5472 Network Switch Replacement Sales Tax $ 24,000 In Progress 640-5953 SCADA Software/Electronics Upgrade Water $ 229,900 In Progress $ - 350-5450 Corporation Yard Renovations
General/Sewer/Water/
Sales Tax $ 80,502 In Progress $ -
350-5476 City Hall Front Door ADA (CDBG) CDBG $ 53,341 In Progress $ - 350-5422 Le Point Street Parking Lot Expansion Sales Tax $ 85,000 In Progress $ 2,699 350-5695 Active Transportation Plan ATP/Sales Tax $ 125,000 In Progress $ - 350-5794 Corrugated Metal Pipe (CMP) Lining Sales Tax/ARPA $ 500,000 In Progress $ -

ATTACHMENT 1

Project
Number Project Fund
Budget
FY 2022-23*
Current
Status
Project Budget
Expended
640-5911
Phased Mains Replacement - South
Halcyon Road, Cornwall Street to Fair
Oaks Avenue Water Facility/ARPA $ 719,474 In Progress $ - 350-5566
Various Open Space Fire / Fuel
Management Sales Tax $ 100,000 In Progress $ 4,100
350-5601
Fair Oaks/Orchard Avenue Intersection
Improvements Developer $ 50,000 In Progress $ -
350-5470
Report Management System (RMS)
Upgrade at PD COPS $ 150,000 In Progress $ -
350-5556
Recreation Services / Community
Center Building Sales Tax $ 46,195 In Progress $ -
350-5796
Storm Water Master Plan Update /
Watershed Management Plan ARPA $ 222,500 In Progress $ - 350-5642 Brisco Road / US 101 Interchange

RSHA/STIP/MPDG/
Traffic Signalization
/Transportation Facility $ 1,407,468
This Project
is No Longer
Happening $ -
612-5849 Maintenance Hole Rehabilitation Developer/Sewer $ 69,842 Not Started $ - 350-5629 Guardrail Replacement Sales Tax $ 55,000 Not Started $ - 350-5430 Short Street Plaza General $ 30,000 Not Started $ - 350-5554 Soto Sports Complex ADA Bleachers Park Improvement $ 15,000 Not Started $ - 640-5973
Phased Main Replacement - Highway
101 Crossing Upgrade, El Camino Real
to West Branch Street ARPA $ 291,200 Not Started $ -
612-5826
Trenchless Sewer Rehabilitation -
Woodland Drive and Ash Street Developer/Sewer $ 132,200 Not Started $ -

ATTACHMENT 1

SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Administrative and Previously-Approved Third Quarter Budget Adjustments The following third quarter budget adjustments were previously approved by Council or are classified as administrative and not requiring Council approval.

Water Fund: Reallocated $20,000 of budgeted expenditures within the Water Fund from the Maintenance: Machinery and Equipment line item to the newly created Central Coast Blue (CCB) Operating expenditures line item. The Central Coast Blue Regional Recycled Water Authority Board of Directors approved an operating Budget for the remainder of FY 2022-23 on March 22, 2023. The total budget is $78,580, and Arroyo Grande’s 25% share is $19,645.

Administrative Services Department: Appropriated funds for 2 budget adjustments reviewed in the Second Quarter Financial Status Report that have been completed and are listed below:
 $75,000 Administrative Services Department: The IT Division had two failed recruitments for IT Manager since the retirement of the City’s long-term employee in August 2022. Since that time, staff used an existing Consultant for staff augmentation support. This budget request reallocated $75,000 from salary savings to consultant services within the IT Division.  $100,000 Public Works Department: The Public Works Administrative Divisions has had an employee taking long-term leave. Contractual services have been required in order to continue providing CIP management services to City staff and the community. Additionally, this division had two vacancies, its Associate Engineer and Administrative Secretary positions, in the second quarter resulting in labor savings of approximately $100,000. This budget request reallocated $100,000 from salary savings to consultant services to provide CIP Support necessitated by employee leave in the Department.

Additional Requested Third Quarter Budget Adjustments
In addition to the adjustments described above, four new budget adjustments are proposed for approval along with the review and receipt of this report.
 $337,401 Administrative Services Department: The Non-Departmental Division budget includes $550,000 for funding as a true-up payment to the Five Cities Fire Authority (FCFA) for the City’s share of accrued actuarial liability for employees who worked for the City before the FCFA was formed. The FCFA was formed in July 2010 as a Joint Powers Authority. At that time, the FCFA became the employer for fire safety personnel previously employed by its member agencies. The City of Grover Beach and the Oceano Community Services District retained the CalPERS liabilities for the past service of their employees. No new CalPERS plan was created for the FCFA and, instead, all FCFA employees have been covered under the City of Arroyo Grande’s CalPERS pension plans. As a result, the City’s CalPERS plans include liabilities for employees and retirees of the City and of FCFA. Since the JPA was formed, FCFA has paid the full costs of the City’s Fire Safety CalPERS plans. As a result, the FCFA has been paying the CalPERS liabilities of City of Arroyo Grande employees that were incurred before the FCFA was formed. The FCFA retained the actuarial firm Foster & Foster to calculate the actuarial accrued liability (AAL) for each person in the Fire Safety Classic tier, mirroring CalPERS actuarial valuation methods and assumptions. The actual cost the City owes FCFA is $887,401, which is $337,401 more than is currently budgeted. It is requested that the City Council approve a budget adjustment in the amount of $337,401 from the General Fund balance to appropriate sufficient funds for the City to pay the total amount

ATTACHMENT 1

owed to the FCFA for its past CalPERS payments on behalf of Arroyo Grande fire personnel employed by the City prior to formation of the Authority.  $18,433 Public Works Department: The Public Works Governmental Building Division budgeted $61,000 for a 3/4 Ton Pickup with Utility Bed. Vehicle and Equipment costs continue to increase with supply chain issues continuing to play a factor on replacing equipment. The truck has been received but the cost for the utility bed has increased. Therefore, the Department is requesting and additional amount of $18,433 to outfit the Utility Bed of the Pickup Truck.  $20,000 Public Works Department: The Public Utilities Divisions is requesting to increase its Water Availability Rebates budget by $20,000 to continue to offer the Cash for Grass program to residents.

This increase is based on direction provided by Council at the March 28, 2023, meeting when the Stage 1 Water Shortage Emergency was rescinded to continue to encourage water conservation for the community.
 $22,830 Legislative & Information Services Department: The Legislative & Information Services Department received the final invoice from the County Clerk-Recorder for costs related to the November 2022 election totaling $52,829.13. This is substantially more than the $30,000 originally budgeted. The County Clerk-Recorder's Office stated the increase in cost for the election is due to additional mandated requirements, such as sending every voter a vote-by-mail ballot, city council districts, as well as general increases in the cost of supplies, postage, and labor.

1 Item 9.c.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
April 25, 2023, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Ray Russom, Council Member George, Council Member Guthrie, Council
Member Secrest
Council Members Absent: Mayor Pro Tem Barneich
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Whitney McDonald,
Assistant City Manager/Public Works Director
Bill Robeson, Recreation Services Director
Sheridan Bohlken, Administrative Services
Director Nicole Valentine, Five Cities Fire
Chief Steve Lieberman
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________

1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

4. FLAG SALUTE
Mayor Ray Russom led the flag salute.

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only

2 Item 9.c.

None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring May as National Foster Care Month Mayor Ray Russom read the Honorary Proclamation Declaring May as National Foster Care Month. Felipe Gonzalez, Program Review Specialist for Foster Care Support, accepted the proclamation.

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

No action was taken on this item.

6.b Honorary Proclamation Recognizing May 7-13, 2023 as National Travel and Tourism Week Mayor Ray Russom read the Honorary Proclamation Recognizing May 7-13 as National Travel and Tourism Week. Melissa Murray, Project Manager, Destination Management, Visit SLO CAL, and Kathy McCorry, South County Chambers of Commerce, accepted the proclamation.

Mayor Ray Russom invited public comment. Speaking from the public was Sean Dasmann, Agrarian Hotel. No further public comments were received.

No action was taken on this item.

6.c Honorary Proclamation Declaring May 7-13, 2023 as Public Service Recognition Week Mayor Ray Russom read the Honorary Proclamation Declaring May 7-13, 2023 as Public Service Recognition Week. Tashina Ureno, Human Resources Officer, accepted the proclamation.

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

No action was taken on this item.

6.d City Manager Communications
City Manager McDonald thanked the community for supporting the We Heart AG event; provided information regarding a public workshop regarding the Halcyon Complete Streets Plan; Recreation Department Mother's Day Tea Party; the new City newsletter; and discussed upcoming items for Council consideration.

Mayor Ray Russom invited public comment. Speaking from the public was Alexandria Davis.

No further public comments were received.

No action was taken on this item.

7. CITY COUNCIL REPORTS
The City Council provided brief reports from the following committee, commission, board, or other subcommittee meetings that they attended as the City’s appointed representative.

7.a MAYOR RAY RUSSOM:

1. California Joint Powers Insurance Authority (CJPIA)

3 Item 9.c.

2. Central Cost Blue Regional Recycled Water Authority Board

3. San Luis Obispo County Mayor's Meeting

4. South San Luis Obispo County Sanitation District (SSLOCSD)

5. Other

7.b MAYOR PRO TEM BARNEICH:

1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

7.c COUNCIL MEMBER GEORGE:

1. Five Cities Fire Authority

2. Tourism Business Improvement District Advisory Board

3. Visit SLO CAL Advisory Board

4. Other

7.d COUNCIL MEMBER GUTHRIE:

1. County Water Resources Advisory Committee (WRAC)

2. Council of Governments/Regional Transit Authority/ South County Transit (SLOCOG/SLORTA/SCT)

3. Integrated Waste Management Authority Board (IWMA)

4. REACH SLO Advisory Commission

5. Other

7.e COUNCIL MEMBER SECREST:

1. Air Pollution Control District (APCD)

2. South County Chambers of Commerce Arroyo Grande Business Meeting

3. South County Chambers of Commerce Governmental Affairs Committee

4. Other

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public were Robin Barnes, Dan Pittaway, Central Coast Veterans Museum. No further public comments were received.

9. CONSENT AGENDA

4 Item 9.c.

Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion.

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

Mayor Ray Russom called for a brief break at 6:40 p.m. The Council reconvened at 6:45 p.m.

Moved by Council Member Guthrie
Seconded by Council Member George
Approve Consent Agenda Items 9.a. through 9.g., with the recommended courses of action.

AYES (4): Council Member Guthrie, Council Member George, Council Member Secrest, and Mayor Ray Russom
ABSENT (1): Mayor Pro Tem Barneich
Passed (4 to 0)

9.a Consideration of Cash Disbursement Ratification
1) Ratify the attached listing of cash disbursements for the period of March 16 through March 31, 2023. 2) Determine that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.b Approval of Minutes
Approve the minutes of the Regular City Council Meetings of March 28, 2023 and April 11, 2023, as submitted.

9.c Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events
1) Adopt a Resolution declaring a continued local emergency related to the ongoing storm events, beginning in December 2022 and continuing through the present. 2) Make findings that adopting the Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because the continued declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.d Acceptance of Oak Park Boulevard Drainage Repairs Project PW 2020-04 1) Accept the project improvements as constructed by Raminha Construction, Inc. in accordance with the plans and specifications for the Oak Park Boulevard Drainage Repairs Project, PW 2020-04; 2) Direct staff to file a Notice of Completion; and 3) Authorize release of retention, thirty-five (35) days after the Notice of Completion has been recorded if no liens have been filed.

9.e Consideration of Approval of an Agreement for Traffic Signal Maintenance with Lee Wilson Electric Company

5 Item 9.c.
1) Approve a 2-year agreement with Lee Wilson Electric Company for traffic signal maintenance with the option of two (2) 2-year extensions; and 2) Determine that approving an agreement for traffic signal maintenance is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the repair, maintenance, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features, among others, where the project involves negligible or no expansion of existing or former use(State CEQA Guidelines, § 15301), and further finds that none of the exceptions set forth in State CEQA Guidelines section 15300.2 apply.

9.f Consideration of a Purchase Order for (1) New Air Compressor; and Declaration of PW243 - 1989 Air Compressor as Surplus 1) Approve a purchase order for the purchase of a new air compressor and find that the Purchase Order for the specific equipment is unique because of its quality, durability, availability and fitness for the contemplated use; 2) Declare PW-243 - 1989 Air Compressor as surplus; 3) Determine that approving a purchase order for a new air compressor is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.g Monthly Water Supply and Demand Update
Receive and file the Monthly Water Supply and Demand Update.

10. PUBLIC HEARINGS
None.

11. OLD BUSINESS

11.a Consider a Draft Amended and Restated JPA of the FCFA, Discuss Terms for a Potential Contract for Fire and Emergency Response Services with the OCSD, and Receive and File the FCFA Final Organizational Assessment Report completed by Baker Tilly City Manager McDonald provided a brief background of the report, recommendations for Council consideration, and responded to questions from Council. City Attorney Rosen provided clarification regarding negotiations of the JPA.

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

Council comments included support for staff's recommendations regarding the draft Amended and Restated Joint Powers Agreement for the Five Cities Fire Authority as well as contract terms for negotiation with Oceano Community Service District for future fire and emergency response service past June 30, 2023.

Moved by Council Member George
Seconded by Council Member Guthrie
1) Approve staff's recommendation regarding the draft Amended and Restated Joint Powers Agreement for the Five Cities Fire Authority; 2) Direct staff to look at a 9-month agreement with a month-to-month extension for service between the FCFA and the OCSD for future fire and

6 Item 9.c.
emergency response service past June 30, 2023; and 3) Receive and file the final report from Baker Tilly providing an organizational assessment of the FCFA.

AYES (4): Council Member George, Council Member Guthrie, Council Member Secrest, and Mayor Ray Russom
ABSENT (1): Mayor Pro Tem Barneich
Passed (4 to 0)

12. NEW BUSINESS

12.a Discussion of Preschool and Child Care Programs Offered through the Recreation Services Department and the Mark M. Millis Community Center Recreation Services Director Bohlken and City Manager McDonald presented the report and staff responded to questions from Council.

Mayor Ray Russom invited public comment. Speaking from the public were Stacy Hall, Bernadette Somo, Niccola Nelson, Michael Newsom, Karla Brown, Natalie Lackey, Nick, Chris Clark, Carrie Van Beveren, No Name Provided, Wendy Wendt, Shana Paulson, Jill Fitzgerald, Ashley Gray, Evelyn Brown, Claire Clark, Ashlee Akers, and No Name Provided. City Clerk Matson read into the record written comments received by Jack, Charlie, Maggie, Ashley Beene, Traci Walker, Amy Southcott, Ashley Gray, Rachel Naccarati, Mykel Rangel, and Julie Casey. No further public comments were received.

Council discussion ensued regarding childcare capacity, cost for preschool, and before and after school childcare. Council Member George provided a recommendation to continue the preschool program through June 2024. Council discussion ensued regarding facility conditions.

Moved by Mayor Ray Russom
Seconded by Council Member Guthrie
Provided direction to staff to phase out its existing child care programs by the fall of 2023 and to provide a list of childcare providers to current participants.

AYES (4): Mayor Ray Russom, Council Member Guthrie, Council Member Secrest, and Council Member George
ABSENT (1): Mayor Pro Tem Barneich
Passed (4 to 0)

12.b Consideration of Annual Report, Adoption of Resolution of Intention to Levy Annual Assessments for the AGTBID; Consideration of Alternatives for Future of AGTBID Mayor Ray Russom declared of conflict of interest due to being a vacation rental and homestay provider, called for a brief break at 10:10 p.m., and left the meeting. The Council reconvened at 10:15 p.m.

Council Member George presided over the meeting.

7 Item 9.c.

City Manager McDonald presented the report; Ashlee Akers and Natalie Bovee, Verdin Marketing, presented the Annual Report and responded to questions from Council.

At 10:50 p.m., Council Member George stated that pursuant to Council policy, the Council must vote unanimously to continue the meeting past 11:00 p.m. Council Member Guthrie moved to continue the meeting to 11:30 p.m. Council Member Secrest seconded the motion, and the motion passed unanimously by voice vote.

Council Member George invited public comment. No public comments were received. Council Member George left public comment open.

Discussion continued regarding the Resolution of Intention to levy and collect assessments within the Arroyo Grande Tourism Business Improvement District area for Fiscal Year 2023-24, including the possibility of the disestablishment of the AGTBID and winding up of its affairs in accordance with applicable State law. City Attorney Rosen and City Clerk Matson provided clarification regarding the the public hearing process and public noticing.

Council discussion ensued around using assessment funds towards host compliance, Destination Management Organizations (DMO) versus TBIDs, and the make-up of the TBID Advisory Board. City Attorney Rosen provided clarification regarding DMOs and TBIDs.

Council Member George invited public comment. Speaking from the public was Kathy Cartier, Kathy McCorry, Gaea Powell and Sean Dasmann. No further public comments were received and Council Member George closed public comment.

At 11:30 p.m., Council Member Guthrie moved to continue the meeting to 11:45 p.m. Council Member Secrest seconded the motion, and the motion passed unanimously by voice vote.

Council discussion included support for changing the make-up of the Advisory Board to a 5- member Board, appointed individually by City Council members, consistent with other City advisory bodies. City Manager McDonald commented that updated Board Bylaws and a discussion of administration of the AGTBID Board will be brought to Council for consideration on May 23, 2023.

Moved by Council Member George
Seconded by Council Member Secrest
Receive and Approve the Annual Report
AYES (3): Council Member George, Council Member Secrest, and Council Member Guthrie ABSENT (2): Mayor Ray Russom, and Mayor Pro Tem Barneich Passed (3 to 0)
Moved by Council Member Guthrie
Seconded by Council Member Secrest
Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO CONTINUE THE ARROYO GRANDE

TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO

8 Item 9.c.

LEVY THE ASSESSMENTS FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR THE 2023-24 FISCAL YEAR"; set a public hearing date of May 23, 2023; and direct staff to place proposed updated TBID Board Bylaws and consideration of transitioning the administration of the AGTBID to City staff on the May 23, 2023 City Council Agenda.

AYES (3): Council Member Guthrie, Council Member Secrest, and Council Member George ABSENT (2): Mayor Ray Russom, and Mayor Pro Tem Barneich Passed (3 to 0)

13. COUNCIL COMMUNICATIONS
Council Member Guthrie requested that the Council consider directing staff to agendize a discussion regarding IWMA direction. Council Member George concurred.

14. ADJOURNMENT
There being no further business to come before the City Council, Council Member George adjourned the meeting at 11:41 p.m.
_________________________
Caren Ray Russom, Mayor
_________________________
Jessica Matson, City Clerk

1 ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
May 9, 2023, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Ray Russom, Mayor Pro Tem Barneich, Council Member George, Council
Member Guthrie, Council Member Secrest
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Whitney McDonald,
Assistant City Manager/Public Works Director
Bill Robeson, Administrative Services Director
Nicole Valentine, Community Development
Director Brian Pedrotti, Associate Planner
Patrick Holub, IT Manager Kevin Waddy
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________

1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:01 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

4. FLAG SALUTE
Mayor Ray Russom led the flag salute.

5. AGENDA REVIEW
Council concurred to hear City Council Communications after Special Presentations.

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
None.

2 6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring May 2023 as Asian American & Native Hawaiian/Pacific Islander Heritage Month
Mayor Ray Russom read the Honorary Proclamation Declaring May 2023 as Asian American & Native Hawaiian/Pacific Islander Heritage Month. Mia Shin, AAPI SLO, accepted the proclamation.

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

No action was taken on this item.

6.b Honorary Proclamation Declaring May 2023 as Mental Health Awareness Month Mayor Ray Russom read the Honorary Proclamation Declaring May 2023 as Mental Health Awareness Month. Emmy Landers and Cole Kynsie Coleburn, Members of the Arroyo Grande High School AIM Club, accepted the proclamation.

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

No action was taken on this item.

6.c Introduction of New Employee Kevin Waddy, IT Manager Administrative Services Director Valentine introduced Kevin Waddy, the City's new IT Manager, and highlighted his educational and professional background.

6.d City Manager Communications
City Manager McDonald welcomed Kevin Waddy, discussed upcoming items for Council consideration, and highlighted upcoming workshops regarding ADUs.

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

No action was taken on this item.

7. CITY COUNCIL REPORTS
None.

Reports are made during the Second Council Meeting each month.

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. No public comments were received.

3 9. CONSENT AGENDA
Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion. There were none.

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

Moved by Mayor Pro Tem Barneich
Seconded by Council Member George
Approve Consent Agenda Items 9.a. through 9.e., with the recommended courses of action.

AYES (5): Mayor Ray Russom, Council Member George, Council Member Guthrie, Council Member Secrest, and Mayor Pro Tem Barneich
Passed (5 to 0)

9.a Consideration of Cash Disbursement Ratification
1) Ratified the listing of cash disbursements for the period of April 1 through April 15, 2023; 2) Determined that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.b Consideration of Statement of Investment Deposits
1) Received and filed the report listing investment deposits of the City of Arroyo Grande as of March 31, 2023, as required by Government Code Section 53646(b); 2) Determined that receiving the report of investment deposits is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.c Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY WITHIN THE CITY OF ARROYO GRANDE (MARCH 2023 AND ONGOING STORM EVENTS BEGINNING DECEMBER 27, 2022)", and 2) Made findings that adopting the Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because the continued declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.d Consideration of Change to Appointment of an Alternate Board Member to Serve on the Central Coast Community Energy Policy Board Through November 30, 2023 Appointed Mayor Pro Tem Barneich to serve as an alternate on the Central Coast Community Energy (CCCE) Policy Board for the term ending November 30, 2023.

4 9.e Consideration of a Communications Facility License Agreement with Dish Wireless, LLC, for the Operations of a Telecommunications Facility Located at Branch Mill Road (Reservoir 4)
1) Approved the License with Dish Wireless for the operation of a telecommunications facility located at Branch Mill Road, commonly known as the Reservoir 4 site, and authorize the City Manager to execute it on behalf of the City, and 2) Determined the application to establish the telecommunication facility is categorically exempt pursuant to Section 15301 of the CEQA Guidelines regarding existing facilities.

10. PUBLIC HEARINGS
None.

11. OLD BUSINESS
None.

12. NEW BUSINESS

12.a Consideration of the 5-Year Capital Improvement Program and 5-year Local Sales Tax Fund Expenditure Program
Assistant City Manager/Public Works Director Robeson provided a presentation on the 5-Year Capital Improvement Program, and Administrative Services Director Valentine provided information regarding project funding. Staff responded to questions from Council.

Discussion ensued regarding additional projects and staff capacity.

Mayor Ray Russom invited public comment. Speaking from the public was Alexandria Davis. No further public comments were received.

Council discussion included support of staff's recommendation. Council Member Guthrie suggested adding James Way pavement management to the 5-year CIP plan. Mayor Ray Russom suggested the James Way item come back to Council for consideration at a later time.

Council Member Guthrie moved to allocate $1.5 million from reserves to support the James Way pavement management project during FY 24-25 in addition to staff's recommendation. The motion failed due to a lack of a second.

The report was received and filed.

12.b Study Session Regarding Short Term Rentals (Vacation Rentals and Homestays) and Potential Revisions to the City’s Short Term Rental Ordinance Mayor Ray Russom, Mayor Pro Tern Barneich, declared conflicts of interest due to ownership of a vacation rental, and Council Member George declared a conflict of interest due to ownership of a permitted accessory dwelling unit.

5 City Attorney Rosen commented on the Fair Political Practices Commission's (FPPC) advice regarding the conflicts of interest and explained the process for randomly drawing straws to determine which of the conflicted Council members may continue to hear the item.

City Clerk Matson administered the drawing of straws with Mayor Ray Russom, Mayor Pro Tem Barneich, and Council Member George. City Clerk Matson announced that Mayor Ray Russom drew the short straw and would remain in the meeting to hear the item.

Mayor Pro Tem Barneich and Council Member George left the meeting.

Mayor Ray Russom called for a brief break at 7:45 p.m. The Council reconvened at 7:52 p.m.

Community Development Director Pedrotti introduced the item and Associate Planner Holub presented the staff report. Staff responded to questions from Council. City Attorney Rosen clarified language in the Ordinance regarding the collection of Transient Occupancy Taxes (TOT).

Mayor Ray Russom invited public comment. Speaking from the public was Glen, and Brenda.

No further public comments were received. Mayor Ray Russom directed staff to connect with the commenters.

Council discussion ensued regarding returning to the 300-foot buffer for both vacation rentals and homestays, and modifying language in the Ordinance to state the minimum TOT paid annually should be equal to the cost of the permit. Council also discussed providing amnesty to the few properties that were notified of non-compliance, giving them 60 days to become compliant.

City Attorney Rosen provided clarification regarding zone text amendments and commented Council could agendize a discussion for a future Council meeting.

Moved by Mayor Ray Russom
Seconded by Council Member Guthrie
Change the Ordinance language 1) to allow the homestays that were part of a series of 28 properties identified by the enforcement agency to have the ability within 60 days to become legally non-conforming if they met the requirements of the existing Ordinance at that time; 2) to state that the TOT remittance penalty be an annual amount equal to the cost of the permit; and 3) to state revocation would occur when there are municipal code violations, an arrest, or combination of the two.

AYES (3): Mayor Ray Russom, Council Member Guthrie, and Council Member Secrest ABSENT (2): Mayor Pro Tem Barneich, and Council Member George Passed (3 to 0)

13. COUNCIL COMMUNICATIONS
This item was heard before Item 8.

Mayor Pro Tem Barneich requested staff look into the solar company that is going door-to-door without a permit.

6 14. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 9:03 p.m.
_________________________
Caren Ray Russom, Mayor
_________________________
Jessica Matson, City Clerk

Item 9.d.

MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events
DATE: May 23, 2023
SUMMARY OF ACTION:

Adoption of the Resolution will continue the two declared and ratified local emergencies related to the ongoing storm events, beginning in December 2022.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no direct fiscal impacts related to the proposed action; however, adoption of the Resolution will facilitate the ability for the City to request resources including financial support and reimbursement from the State Office of Emergency Services and the Federal Emergency Management Agency for costs incurred in preparation and/or response to the storm events.

RECOMMENDATION:
1) Adopt a Resolution declaring a continued local emergency related to the ongoing storm events, beginning in December 2022 and continuing through the present. 2) Make findings that adopting the Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because the continued declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

BACKGROUND
As the City Council is aware, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the City Manager, in her capacity as the Director of Emergency Services, proclaimed a local emergency on January 18, 2023, regarding the severe January 2023 winter storms. The City Council ratified the emergency proclamation at its regular meeting on January 24, 2023.

Item 9.d.

City Council
Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events
May 23, 2023

Multiple additional atmospheric river systems again struck the Central Coast beginning on March 9, 2023, and the City Manager, again in her capacity as the Director of Emergency Services, proclaimed a local emergency on March 11, 2023, to account for the impacts and potential damage incurred subsequent to the declaration of the first local emergency. The City Council ratified the emergency proclamation at its regular meeting on March 14, 2023.

ANALYSIS OF ISSUES:

Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to “Review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated.” Accordingly, to date, the City Council has adopted the appropriate Resolutions declaring a continued local emergency related to both the January 2023 storm events and subsequent storm events within the required 21-day time period. Moving forward, provided there is adoption of this Resolution consistent with the prior ratification of the emergency proclamations at the City Council’s January 24, 2023, February 14, 2023, February 28, 2023, March 14, 2023, March 28, April 11, April 25, 2023, May 9, 2023 regular meetings, respectively; and the City with adoption of this resolution, the City will remain in compliance with its Municipal Code.

This item is being presented to the City Council to satisfy the requirements of Section

8.12.065(C). Given the current state of emergency proclaimed by the Governor, the Presidential Major Disaster Declaration declared on January 14, 2023, and the Presidential Emergency Declaration declared on March 10, 2023, it is recommended that the City Council adopt the attached Resolution declaring the need to continue the emergency declarations made to date in response to the storm events beginning December 27, 2022. The County of San Luis Obispo issued a similar emergency declaration, which remains in effect. Federal, State and County emergency declarations associated with the January 2023 storm events, and resulting damage, continue to remain in effect.

Since the initial emergency declarations, multiple additional atmospheric river systems continued to strike the Central Coast beginning on March 9, 2023. On March 10, 2023, the Emergency Services Director for the County of San Luis Obispo issued a Proclamation of a Local Emergency related to severe winter storms and a series of atmospheric rivers systems that struck California beginning on December 27, 2022, and have been ongoing since that date. On March 1, 2023, Governor Newsom issued an emergency proclamation related to the severe winter storms impacting San Luis Obispo and other counties throughout the State.

City staff continue to dedicate time towards responding to numerous storm recovery efforts and continue to require support from County, State, and Federal emergency

Item 9.d.

City Council
Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Ongoing Storm Events
May 23, 2023

response resources to support these efforts. Staff continue to work with State and Federal officials to request funding for the City’s response and recovery efforts. It is recommended that the local emergency declarations be continued until this funding is received.

ALTERNATIVES:

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

1. Adopt the Resolution declaring a continued local emergency related to the ongoing storm events, beginning in December 2022; or

2. Provide other direction to staff.

ADVANTAGES:

Adoption of the Resolution will satisfy the requirement of the Arroyo Grande Municipal Code regarding the periodic review of the declared local emergency related to the severe winter storms and support the City’s efforts to obtain assistance from County, State, and federal emergency response resources to recover from the disaster.

DISADVANTAGES:

No disadvantages have been identified to adopting the Resolution.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item. Adopting the Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because that declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
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

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE DECLARING A CONTINUED

LOCAL EMERGENCY WITHIN THE CITY OF ARROYO
GRANDE (MARCH 2023 AND ONGOING STORM EVENTS
BEGINNING DECEMBER 27, 2022)
WHEREAS, on January 18, 2023, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the City Manager, in her capacity as the Director of Emergency Services Director, proclaimed a local emergency within the City commencing on or about 8:00 am on January 4, 2023, due to the storm events that began on December 27, 2022; and
WHEREAS, the City Council ratified the emergency proclamation through adoption of Resolution No. 5259 at its regular meeting on January 24, 2023; and WHEREAS, Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated; and
WHEREAS, the City Council has adopted Resolutions declaring a continued local emergency related to the ongoing storm events on February 14, 2023, February 28, 2023, March 14, 2023, March 28, April 11, April 25, 2023, May 9, 2023; and WHEREAS, pursuant to the provisions of Government Code section 8558(b), on January 4, 2023, the Governor of the State of California issued a Proclamation of a State of Emergency (“Governor’s Proclamation”) related to severe winter storms and a series of atmospheric river systems that struck California, bringing high winds, substantial precipitation, and river, stream and urban flooding; and WHEREAS, on January 8, 2023, the President of the United States declared that an emergency exists in the State of California relating to severe winter storms, flooding, landslides, and mudslides, and enabling public agencies in impacted counties that suffered damage or losses from the storms eligible to apply for federal disaster assistance; and
WHEREAS, on January 9, 2023, the County Administrative Officer of San Luis Obispo issued a Proclamation of Local Emergency relating to severe winter storms and a series of atmospheric river systems that struck San Luis Obispo County, bringing high winds, substantial precipitation, and river, stream and urban flooding; and

RESOLUTION NO.

PAGE 2
WHEREAS, on January 17, 2023, the Department of Homeland Security amended the major disaster declaration issued in January 14, 2023 related to the January 2023 storm events to add San Luis Obispo County as an affected county, enabling Arroyo Grande residents who had damage or losses from the storms to apply for Federal Emergency Management Agency (FEMA) disaster assistance; and
WHEREAS, on March 11, 2023, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the City Manager, in her capacity as the Director of Emergency Services Director, proclaimed a local emergency within the City commencing on or about March 9, 2023, in response to the latest series of atmospheric river systems and the damage to the City due to the storm events that began on December 27, 2022; and WHEREAS, the City Council ratified the emergency proclamation through adoption of Resolution No. 5273 at its regular meeting on March 14, 2023; and WHEREAS, the City Manager’s March 11, 2023 proclamation followed a County of San Luis Obispo issued Proclamation of Local Emergency on March 10, 2023 for the entire County due to severe storms; and
WHEREAS, on March 10, 2023, President Biden approved a California Emergency Declaration beginning on March 9, 2023, ordering Federal assistance to supplement State, tribal and local response efforts; and
WHEREAS, the ongoing atmospheric rivers caused significant flooding of City infrastructure and streets, as well as homes in Arroyo Grande; and WHEREAS, adopting this Resolution continuing a local emergency is not a project subject to the California Environmental Quality Act (“CEQA”) because the continued declaration in itself has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).

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

1. The recitals set forth herein are true, correct and incorporated by reference.

2. A local emergency is declared to continues to exist throughout the City of Arroyo Grande (see Resolution No. 5259), and the City has been undertaking, and will continue through termination of this emergency to undertake necessary measures and incur necessary costs, which are directly related to the damage caused by the severe winter storms and are taken in furtherance of; the Governor’s Proclamation of a State of Emergency on January 4, 2023; the

RESOLUTION NO.

PAGE 3
President of the United States’ Declaration of a National Emergency on January 8, 2023; and related orders and directives.

3. A local emergency is declared to continue to exist throughout the City of Arroyo Grande (see Resolution Nos. 5269 and 5273) resulting from subsequent storm events, and the City has been undertaking, and will continue in effect through termination of this emergency, to undertake necessary measures and incur necessary costs, which are directly related to the damage caused by the severe winter storms and are taken in furtherance of the Governor’s Proclamation of a State of Emergency on January 4, 2023; the President of the United States’ approval of a California Emergency Declaration beginning January 8, 2023; the County of San Luis Obispo’s Proclamation of a Local Emergency on March 10, 2023; and related orders and directives.

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 23rd day of May, 2023.

RESOLUTION NO.

PAGE 4

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
BY: Isaac Rosen, City Attorney
SUBJECT: Consideration of a Professional Services Agreement with Kosmont Real Estate Services dba Kosmont Realty
DATE: May 23, 2023
SUMMARY OF ACTION:

The City is pursuing the sale of land it owns at 400 W. Branch (Property), which the City Council declared as surplus and for which a Notice of Availability was transmitted under the Surplus Land Act on December 2, 2022. Approval of the recommended actions would authorize the City Manager to approve a new agreement for Kosmont to continue to negotiate a land sale for the Property.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The proposed Agreement would require a payment of a not-too-exceed amount of $25,000, billed based on time spent from Kosmont on those items.

RECOMMENDATION:
1) Authorize the City Manager to enter into the attached agreement with Kosmont Real Estate Services dba Kosmont Realty (“Kosmont”) for the continued provision of real estate advisory services associated with 400 W. Branch in the City of Arroyo Grande (“Property”), in substantially final form, subject to minor modifications approved by the City Manager in consultation with the City Attorney. 2) Make findings that approving an agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
BACKGROUND:

The City of Arroyo Grande and Kosmont previously entered into an agreement in March of 2017 to provide real estate advisory services in connection with a 4.3-acre City-owned opportunity site located along W. Branch St. parallel to U.S. Highway 101, 400 West Branch Street (“Property”). In March 2018, the City directed Kosmont to prepare a

Item 9.e.

City Council
Consideration of a Professional Services Agreement with Kosmont Real Estate Services dba Kosmont Realty
May 23, 2023

Request for Qualifications/Proposals to solicit interest from developers/hotels for a hotel use on the Property. On May 10, 2019, the City entered into an agreement with Kosmont to provide continuing real estate advisory services relating to an approximately 1.6-acre opportunity site located along Halcyon Rd. and El Camino Real (the “Halcyon Site”). On August 13th, 2021, the City and Kosmont revived and amended the March 10, 2019 agreement, to be in effect until August 31, 2022, with an updated “Work Plan for Continued Real Estate Advisory Services,” dated July 23, 2021. The scope of Kosmont’s work was a hotel market analysis, business / developer attraction, and initial public-private partnership with a hotel developer under an exclusive negotiation agreement (“ENA”), and initial compliance activities pursuant to AB 1486 and the Surplus Land Act regarding the potential reuse and/or redevelopment of the property.

ANALYSIS OF ISSUES:

Approval of an agreement with Kosmont will result in the provision of ongoing services with respect to the Property. Kosmont will provide “ongoing pre-sale/disposition real estate advisory/technical services to continue to identify, evaluate, and negotiate a preferred commercially viable development transaction supported by necessary compliance activities under the Surplus Land Act.” Kosmont has previously provided the City with services in connection with the Property, and it is familiar with the City’s processes, State law, and the Property site.

Under the Agreement, Kosmont would provide (or continue to provide), in consultation with the City Attorney’s office, the following 4 tasks:
(1) coordination of the Notice of Availability (“NOA”) solicitation process; (2) good faith negotiation with respondents to those who submit a notice of interest and a presentation to Council seeking authorization to proceed; (3) review all project-based materials related to the transaction; and (4) assist the City/City Attorney in ensuring compliance and coordinate with the City/City Attorney processes/requirements/deadlines under a Disposition and Development Agreement and under the Surplus Land Act.

The costs of those services are discussed further in the “Financial Impacts” section of this report. Kosmont’s December 2022 proposal (Attachment 2) includes an additional task (Task 5) to provide real estate brokerage services in connection with the Property that has not been included in the proposed agreement. The City intends to negotiate separate with Kosmont related to this additional task. So while brokerage services is included in the Scope of Services, Section 3.3.1 of the Agreement makes clear the $25,000 contract extension for all work, including work incurred to date, is for Tasks 1-4 and excludes Task 5, which is listed in the Scope of Services as a “Future” task.

Item 9.e.

City Council
Consideration of a Professional Services Agreement with Kosmont Real Estate Services dba Kosmont Realty
May 23, 2023

ALTERNATIVES:

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

1. Approve an Agreement with Kosmont Real Estate Services for an amount not to exceed $25,000;

2. Do not approve an Agreement; or

3. Provide other direction to staff.

ADVANTAGES:

Approval of an agreement with Kosmont will result in the provision of ongoing services with respect to the Property.

DISADVANTAGES:

No disadvantages are identified.

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 Agreement

2. Kosmont’s December 22, 2022 Proposal

65501.00003\41242592.3
ATTACHMENT 1
-1-

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND KOSMONT & ASSOCIATES

1. PARTIES AND DATE.

This Agreement is made and entered into this __
th day of ____, 2023, by and between the
City of Arroyo Grande, a municipal corporation, organized under the laws of the State of California ("City") and Kosmont & Associates, Inc., a California Corporation, doing business as Kosmont Companies, with its principal place of business at 2301 Rosecrans Avenue, Suite 4140, El Segundo, CA 90245 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing real estate and economic development services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional services for the Economic Development Strategy and Opportunity Site Implementation project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional real estate and economic development consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall not expire until the sooner of the completion of the Services, or 365 days following execution of this Agreement, unless earlier terminated as provided herein. If the Services are not complete at the conclusion of 365 days following execution of this Agreement, the City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than three additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

65501.00003\41242592.3
ATTACHMENT 1
-2-

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Ken K. Hira, President.

3.2.5 City's Representative. The City hereby designates Whitney McDonald, City Manager, or her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Ken Hira, Project Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

65501.00003\41242592.3
ATTACHMENT 1
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3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”).

Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry,

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sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.

3.2.11 Insurance.

3.2.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause.

3.2.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
(C) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect

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the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

3.2.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(C) Professional Liability (Errors & Omissions (1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. (D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.2.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically

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allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.11.9 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.2.11.10 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

3.2.11.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.

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(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(C) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(F) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.2.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority.

Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may

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seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "B" attached hereto and incorporated herein by reference. The total compensation shall not exceed Twenty Five Thousand ($25,000) for any work, including work incurred to date at the time of the execution of this Agreement, without written approval of the City Council or City Manager as applicable for tasks 1 through 4 described in Exhibit “A.” Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. The City Manager will have authority to approve Extra Work within 10% of the total compensation.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice, no later than the fifteenth (15th) calendar day of each month, which indicates work completed and hours of Services rendered by Consultant during the prior month. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "B" of this Agreement.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “B” may be adjusted at the time of renewal as set forth in Exhibit “C.”

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

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3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Kosmont Companies
1601 N. Sepulveda Blvd., #382 Manhattan Beach, CA
90266
ATTN: Ken K. Hira
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, California 93420
ATTN: Whitney McDonald, City Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall

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be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

3.5.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.5.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.5.3.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.5.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Any

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material provided to the Consultant in connection with this Agreement is necessary to furthering the City’s legal interests and shall be deemed privileged. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Indemnification.

3.5.5.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents, or any violation of Government Code Section 1090, in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement for a period not to exceed four (4) years.

3.5.5.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful

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misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

3.5.7 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Luis Obispo County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

3.5.8 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this

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Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination for a period not to exceed four (4) years.
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65501.00003\41242592.3
ATTACHMENT 1
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ATTACHMENT 1
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SIGNATURE PAGE TO

PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN

THE CITY OF ARROYO GRANDE AND KOSMONT &

ASSOCIATES, INC
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF ARROYO GRANDE KOSMONT COMPANIES
By: ____________________________ By: ______________________________ Whitney McDonald Ken K. Hira
City Manager President
Attest:

Jessica Matson, City Clerk
Approved as to Form:
______________________________
Best Best & Krieger LLP
Isaac Rosen, City Attorney

65501.00003\41242592.3
ATTACHMENT 1
EXHIBIT "A"

SCOPE OF SERVICES
I. BACKGROUND AND OBJECTIVE
Kosmont Companies (“Kosmont”) or Consultant has assisted the City on a hotel market analysis, business / developer attraction, and initial public-private partnership with a hotel developer under an Exclusive Negotiation Agreement (“ENA”) and with initial compliance activities pursuant to AB 1486 (“Surplus Land Act” or “SLA”) regarding the potential reuse and/or redevelopment of the Property, which may include the development of hospitality and/or other potential uses (e.g., residential). Client is requesting ongoing pre-sale/disposition real estate advisory/technical services to continue to identify, evaluate, and ultimately to assist in negotiation of a preferred commercially viable development transaction supported by the necessary compliance activities pursuant to the Surplus Land Act for the subject Property.

II. SCOPE OF SERVICES
Approach to Scope of Services: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature.

Kosmont will be making recommendations only, which advise the Client, including its elected officials, appointed officials and staff, which they can accept or reject. None of Kosmont staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.

Task 1: Surplus Land Act (SLA) Process - N.O.A.
 Kosmont will coordinate the Notice of Availability (“NOA”) solicitation process required by the SLA for the Property, which requires a 60-day noticing period.

Task 2: SLA Respondent Due Diligence/Public-Private Negotiations  The SLA requires that the Client negotiate in good faith with respondents that submitted a notice of interest for a period of 90 days. Kosmont can assist / coordinate with City Attorney in reviewing notices of interest, evaluating proposals/offers submitted, and/or public-private transaction structuring/negotiations as may be required with the respondents for the sale/disposition of the Property.

Task 3: Project Due Diligence and Viability Activities
 Assist City in requesting and reviewing project-based materials as related to the transaction structure and documentation including market information and reports, sale comparables, pro forma schedules, entitlement requirements, site development and parking conditions, and/or similar information.

Task 4: ENA/Disposition and Development Agreement Negotiation Assistance  In coordination with City/City Attorney, work with the developer to ensure ongoing compliance with ENA terms and timing of deliverables, receipt of

65501.00003\41242592.3
ATTACHMENT 1
deposits, transaction timeframes and extensions as may be considered, and schedule of performance.
 Assist and coordinate with the City/City Attorney regarding processes/requirements/deadlines as pertaining to this transaction including the Disposition and Development Agreement and in accordance with the Surplus Land Act.
 As needed and as mutually agreed upon between Consultant and City, assist City/City Attorney with third party negotiation of relevant business terms.

Future Task 5: Real Estate Brokerage Services
Kosmont Real Estate Services dba Kosmont Realty (KR), is a full-service real estate brokerage firm licensed in the State of California (DRE License # 02058445). KR will be paid for this task by a real estate commission upon the close of any sales transaction for the Property in accordance with an Exclusive Authorization to Sell including:
 Execute on potential alternatives /approaches to achieve interest in the property/opportunity, including stakeholder/marketing outreach materials, as may be determined necessary, in connection with the sale and disposition of the entire site and/or portions of the subject Property, as appropriate.  Coordinate with the selected escrow and title company. Prepare required disclosures and coordinate activities related to the potential transaction to effectuate the sale of the Property on a basis that seeks to maximize the longterm economic impact to the City and achieve consistency with the City’s vision and any other overlapping planning documentation and efforts.

65501.00003\41242592.3
ATTACHMENT 1
Exhibit “B”-1

65501.00003\41242592.3
Exhibit “B”-1
EXHIBIT "B"
Kosmont Companies
2023 Fee Schedule
Professional Services
Chairman & CEO $445.00/hour
President $385.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $350.00/hour Vice President/Project Advisor $225.00/hour
Senior Project Analyst $195.00/hour
Project Analyst/Project Research $165.00/hour
Assistant Project Analyst/Assistant Project Manager $125.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 70.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
 Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.

Rates shall remain in effect until December 31, 2023.

Kosmont Realty
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1076 Physical Address: 2301 Rosecrans Ave., Ste. 4140 Manhattan Beach, CA 90266 www.kosmontrealty.com El Segundo, CA 90245 90245 December 23, 2022
Ms. Whitney McDonald
City Manager
City of Arroyo Grande
300 E. Branch St.

Arroyo Grande, CA 93420
Re: Proposal for Real Estate Advisory and Brokerage Services Dear Ms. McDonald,
Kosmont Real Estate Services dba Kosmont Realty, a licensed California brokerage firm (#02058445), (“KR” or “Broker”) is pleased to present this proposal to the City of Arroyo Grande (“City” or “Client”) for pre-disposition real estate advisory/due-diligence services and brokerage services in connection with the future sale and disposition of an approximately 4.26-acre property located at 400 West Branch Street in the City (“Property”).

This proposal serves as an agreement (“Agreement”) when executed and returned by Client to KR.

I. BACKGROUND AND OBJECTIVE
Kosmont Companies (KC) has assisted the City on a hotel market analysis, business / developer attraction, and initial public-private partnership with a hotel developer under an Exclusive Negotiation Agreement (“ENA”) and with initial compliance activities pursuant to AB 1486 (“Surplus Land Act” or “SLA”) regarding the potential reuse and/or redevelopment of the Property, which may include the development of hospitality and/or other potential uses (e.g., residential).

Client is requesting ongoing pre-sale/disposition real estate advisory/technical services by KR, to continue to identify, evaluate, and ultimately to negotiate a preferred commercially viable development transaction supported by the necessary compliance activities pursuant to the Surplus Land Act for the subject Property. In pursuit of these activities, upon execution, KR proposes to perform follow-on advisory services as identified in Tasks 1-4 below.

To the extent a preferred concept and the lead developer(s) can move forward with acquisition and development of the subject Property, then pursuant to Task 4, KR will provide real estate brokerage services in connection with the sale of the Property including: ongoing marketing and collaboration with developers for the entire Property; evaluation of developer(s) financial capacity to properly execute the project ; evaluation of track record and relevant prior performance and related due diligence; structuring ATTACHMENT 2

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 2 | P a g e
(424) 297-1076
www.kosmontrealty.com
and negotiation of Purchase and Sale documentation; coordination of escrow and site due diligence activities as necessary to close the transaction.

The advantages of working with KR is our multi-faceted expertise and hands-on knowledge of predevelopment market conditions and purchase and sale transactions, in conjunction with our extensive brokerage experience, a primary focus of which is the disposition of public agency assets. KR’s in-depth knowledge of real estate transactions between public agencies and private parties can deliver preferable outcomes for the City. KR has access to a broad base of real estate experts and market/financial transaction data as pertaining to municipal/former RDA property deals that other brokerage firms typically do not offer.

Accordingly, KR proposes the following Scope of Services.

II. SCOPE OF SERVICES
Approach to Scope of Services: The prospective assignment and consulting services that KR will provide will be of a relatively limited scope and duration, and advisory in nature. KR will be making recommendations only, which advise the Client, including its elected officials, appointed officials and staff, which they can accept or reject. None of KR or Kosmont Companies staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.

Task 1: Surplus Land Act (SLA) Process - N.O.A.
 KR will coordinate and manage the Notice of Availability (“NOA”) solicitation process required by the SLA for the Property, which requires a 60-day noticing period set to expire on January 31, 2023.

Task 2: SLA Respondent Due Diligence/Public-Private Negotiations  The SLA requires that the Client negotiate in good faith with respondents that submitted a notice of interest for a period of 90 days. KR can assist with reviewing notices of interest, evaluating proposals/offers submitted, and/or public-private transaction structuring/negotiations as may be required with the respondents for the sale/disposition of the Property.  If requested, KR can assist the Client with a presentation to the City Council that will seek authorization to proceed with any prospective transactions (as mutually agreed upon between Client and KR).

Task 3: Project Due Diligence and Viability Activities
 Assist City in requesting and reviewing project-based materials as related to the transaction structure and documentation including market information and reports, sale comparables, pro forma schedules, entitlement requirements, site development and parking conditions, and/or similar information.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 3 | P a g e
(424) 297-1076
www.kosmontrealty.com
Task 4: ENA/Disposition and Development Agreement Negotiations  In coordination with City/City Attorney, work with the developer to ensure ongoing compliance with ENA terms and timing of deliverables, receipt of deposits, transaction timeframes and extensions as may be considered, and schedule of performance.  Assist and coordinate with the City/City Attorney regarding processes/requirements/deadlines as pertaining to this transaction including the Disposition and Development Agreement and in accordance with the Surplus Land Act.
 As needed and as mutually agreed upon between KR and City, assist City/City Attorney with third party negotiation of relevant business terms.

Task 5: Real Estate Brokerage Services
KR is a full-service real estate brokerage firm licensed in the State of California (DRE License # 02058445). KR will be paid for this task by a real estate commission upon the close of any sales transaction for the Property in accordance with the Exclusive Authorization to Sell in Attachment B to this proposal:
 Execute on potential alternatives /approaches to achieve interest in the property/opportunity, including stakeholder/marketing outreach materials, as may be determined necessary, in connection with the sale and disposition of the entire site and/or portions of the subject Property, as appropriate.
 Coordinate with the selected escrow and title company. Prepare required disclosures and coordinate activities related to the potential transaction to effectuate the sale of the Property on a basis that seeks to maximize the long-term economic impact to the City and achieve consistency with the City’s vision and any other overlapping planning documentation and efforts.

III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 4 | P a g e
(424) 297-1076
www.kosmontrealty.com
IV. COMPENSATION
Compensation for Tasks 1 through 4 is estimated at $25,000 for professional services (hourly) fees at KR’s billing rates as shown on Attachment A. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time.

Compensation for Task 5 would consist of (1) the higher of a six (6) percent commission of the gross sales price or independently appraised value or (2) a minimum commission amount of $125,000, whichever is greater. Compensation for Task 5 shall require Client approval of Attachment B, which is an Exclusive Authorization to Sell Agreement by and between KR and the Client and includes Exhibit A:

Schedule of Commission, which in the aggregate comprise and are heretofore referred to as “Attachment B.”
KR anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.

KR’s attendance or participation at any publicly noticed meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation for Tasks 1 through 4 and will be billed at the professional services (hourly) fees as shown on Attachment A.

Services will be invoiced monthly at KR’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for out-of-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.

KR will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of KR’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.

For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:

1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or

2. Call Kosmont Companies’ accounting desk (Ms. Reny Sultan; (424) 297-1072) to make a credit card payment
KR is prepared to commence work upon receipt of executed Agreement.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 5 | P a g e
(424) 297-1076
www.kosmontrealty.com
DISCLOSURE: Compensation for possible future transaction-based services or consulting services.

The following is being provided solely as an advance disclosure of possible real estate consulting and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.

When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.

When assignments involve advisory services provided by Kosmont & Associates, Inc., dba Kosmont Companies (“KC”), a separate proposal and hourly rate sheet will be provided.

V. OTHER PROVISIONS

A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.

B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge. The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.

C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 6 | P a g e
(424) 297-1076
www.kosmontrealty.com
D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.

E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.

F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.

G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

H. Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.

I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.

J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.

K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.

L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.

M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 7 | P a g e
(424) 297-1076
www.kosmontrealty.com
N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.

O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.

Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant.

Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.

P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.

Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.

R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.

S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice. [ signature page follows]

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 8 | P a g e
(424) 297-1076
www.kosmontrealty.com
VI. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Realty. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.

Read, understood, and agreed to this
____ Day of _______________ 2023

City of Arroyo Grande Kosmont Real Estate Services
doing business as “Kosmont Realty”
By: _________________________ By: _________________________ (Signature) (Signature)

Name: Name: Larry J. Kosmont, CRE®
(Print Name)

Its: Its: President
(Title)

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 9 | P a g e
(424) 297-1076
www.kosmontrealty.com

ATTACHMENT A
Kosmont Realty
2023 Fee Schedule
Professional Services
Chairman & CEO / President $445.00/hour
Senior Managing Director/Senior Advisor $350.00/hour
Managing Director $225.00/hour
Senior Director / Senior Project Analyst $195.00/hour
Director / Project Analyst / Project Manager $165.00/hour Project Promotion/Graphics/GIS Mapping Services/Research $ 95.00/hour Clerical Support $ 70.00/hour

 Additional Expenses
In addition to professional services (labor) fees:
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Realty Corporation professional service fees incurred; plus 2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) For Third Party Vendor(s) retained on behalf of Client (with Client’s advance approval), fees and costs will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.  Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.

Rates shall remain in effect until December 31, 2023.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 10 | P a g e
(424) 297-1076
www.kosmontrealty.com

ATTACHMENT B

EXCLUSIVE AUTHORIZATION TO SELL AGREEMENT
The Exclusive Authorization to Sell incorporates, by reference, the following attached documents:

Exhibit A: Schedule of Commissions
The City of Arroyo Grande (“Owner” or “Seller”) hereby grants to Kosmont Real Estate Services, doing business as Kosmont Realty (“Broker”) the exclusive right to sell the subject properties known and shown/listed below:

1. 400 West Branch Street (APNs: 007-011-055, 007-011-056) (“Properties”) for a period commencing on _________________ and ending at midnight on ______________________.

The price and terms of the sale shall be as follows:

In consideration of this Authorization and Broker’s agreement to diligently pursue the procurement of a purchaser for the Properties, or a purchaser and lessees for the Properties, Owner agrees to pay Broker a commission as set forth in the attached Schedule of Commissions, which is made a part of this Agreement.

Owner shall pay said commission to Broker if: (a) the Properties or any interest therein is sold, transferred or conveyed by or through a Broker, Owner or any other party prior to the expiration of this Authorization or any extension hereof; or (b) a purchaser is procured by or through Broker, Owner or any other party who is ready, willing and able to purchase the Properties or any interest therein on terms reasonably acceptable to Owner prior to the expiration of this Authorization or any extension hereof; or (c) any contract for the sale, transfer or conveyance of the Properties or any interest therein is made directly by Owner prior to the expiration of this Authorization or any extension hereof; or (d) the Properties are withdrawn from sale without the written consent of Broker or made unmarketable by Owner’s voluntary act during the term of this Authorization or any extension hereof; or (e) within one hundred eighty (180) days after the expiration of this Authorization or any extension hereof, the Properties or any interest therein is sold, transferred, or conveyed to any person or entity with whom Broker has negotiated or to whom Broker has exposed or shown the Properties prior to such expiration in an effort to effect a transaction provided that such buyer, person or entity to whom Broker has negotiated with or has shown the Properties has been clearly and expressly identified in writing on such list which Broker shall have mailed to Owner at the address below stated within thirty (30) days following such expiration.

If during the terms of this authorization or any extension hereof an escrow is opened or negotiations involving the sale, transfer, or conveyance of the Properties has commenced and is continuing, then the term of this Authorization shall be extended for a period through the closing of such escrow, the termination of such negotiations or the consummation of such transaction, provided this authorization would otherwise have expired during such period.

Owner agrees that Broker shall be included as a party to any escrow opened for the sale of the Properties and the terms of said escrow shall provide that Broker shall have the right to request the escrow holder

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 11 | P a g e
(424) 297-1076
www.kosmontrealty.com
to make payment to Broker in the amount of Broker’s commission as set forth on the Schedule of Commissions attached hereto from any sale proceeds and/or deposits held in escrow.

Owner agrees to cooperate with Broker in effecting a sale of the Properties and immediately to refer to Broker all inquiries of any party interested in the Properties. All negotiations are to be through Broker.

Owner agrees to pay all customary escrow, title and revenue charges and to execute such documents as may be necessary to affect a sale of the Properties. Broker is authorized to accept a deposit from any prospective purchaser. Broker is further authorized to advertise the Properties and shall have the exclusive right to place a sign or signs on the Properties if, in Broker’s opinion, such would facilitate the sale or leasing thereof.

It is understood that it is illegal for either Owner or Broker to refuse to present, sell to any person because of race, color, religion, national origin, sex, marital status or physical disability.

Owner warrants that it is the owner of record of the Properties or has the legal authority to execute this Authorization. Owner agrees to hold Broker harmless from any liability or damages arising from any incorrect information supplied by Owner or any information which Owner fails to supply. Owner acknowledges receipt of a copy of this Authorization and the attached Schedule of Commissions, which Owner has read and understands.

DISPUTE RESOLUTION.

Broker and Owner agree to attempt to resolve any claim or controversy by submission to nonbinding mediation. Mediation shall be commenced by providing the opposing party with a written notice of the dispute or claim within 30 days of the event giving rise to the dispute or claim or within 30 days after discovery of the conditions giving rise to the dispute or claim, whichever is later. The written notice to the other party shall summarize the basis of the dispute or claim and describe the relief sought. Within 15 calendar days thereafter, if the parties have not reached a mutually satisfactory resolution, the disputing party shall have 15 additional calendar days to submit the dispute to non-binding mediation at the offices of Judicial Arbitration & Mediation Services, Inc. (JAMS) in the county where the Property is located. The parties may agree on a retired judge from the JAMS panel as a mediator. If the parties are unable to agree, JAMS will provide a list of three (3) available judges and each party may strike one. The remaining judge will serve as the mediator. Within 15 calendar days of commencement of mediation, each party agrees to produce any and all documents relied upon to prove or defend their claims. The assessment of the mediator shall be an appealable result, but only if the appealing party files a court action within 30 days after the mediator’s assessment is rendered. Each party shall bear its own costs of mediation including its own attorneys’ fees and related costs, and each party shall pay an equal share of the costs of the mediator’s fees and expenses.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 12 | P a g e
(424) 297-1076
www.kosmontrealty.com
By signing below, Seller and Buyer acknowledge that they have read, understand, accept and have received a copy of this Agreement.

Owner:

City of Arroyo Grande
Broker:

Kosmont Real Estate Services, a
California corporation
CA DRE #: 02058445
By:

___________________________
By:

___________________________
Date:
___________________________
Date:
___________________________
Address:
300 East Branch Street
Arroyo Grande, CA 93420
Address:
1601 N. Sepulveda Blvd., #382
Manhattan Beach, CA 90266
Telephone:
___________________________
Telephone:
(424) 297-1070___________

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 13 | P a g e
(424) 297-1076
www.kosmontrealty.com

EXCLUSIVE AUTHORIZATION TO SELL

EXHIBIT A
SCHEDULE OF COMMISSIONS (for Brokerage Services)
Kosmont Real Estate Services, doing business as Kosmont Realty (“Broker”) is hereby employed as the agent for the City of Arroyo Grande (“Owner” or “Seller”) in connection with the:

Sale Lease Sublease Other
of that certain Property owned by the Owner and referred to by Owner as:

1. 400 West Branch Street (APNs: 007-011-055, 007-011-056) (hereinafter referred to as “Properties”).

Owner agrees to pay Broker, in consideration for their brokerage services relative to the above referenced Properties, a commission computed as follows:

A. SALES, EXCHANGES, AND OTHER TRANSFERS

1. Vacant Real Property: 6% of the gross sales price or independently appraised value of the parcel or a minimum commission of $125,000, whichever is greater. For a ground lease, 4% of the total base rent for the first thirty (30) years of the term of the lease; or a minimum commission amount as mutually agreed upon between Client and KR, whichever is greater.

2. Improved Real Property: 6% of the gross sales price or independently appraised value of the parcel, whichever is greater. Additionally, for any lease negotiated, 6% of lease rate for initial term and 3% for subsequent lease periods and options.

3. Commissions shall be paid through escrow upon the closing of sales and exchange transactions; absent an escrow; commissions shall be paid upon recordation of a deed or upon delivery of such deed or other conveyance if recordation is deferred more than one month thereafter. In the event of a contract or agreement of sales, joint venture agreement, business opportunity or other transaction not involving the delivery of a deed, commissions shall be paid upon execution and delivery of the instrument of conveyance or establishment of the entitlement of ownership.

Miscellaneous:

The provisions hereof are subject, however, to the terms and provisions of any Exclusive Authorization to Sell to which this Schedule may be attached, and which is executed by the parties hereto.

The parties hereto intend for this Exclusive Authorization to Sell and Schedule of Commissions to satisfy the requirements of the Civil Code, Business and Professions Code, and regulatory requirements relative to verifying Broker’s authority to act on behalf of Owner and Owner’s obligation to pay Broker commissions therefore, in accordance herewith.

City of Arroyo Grande
Real Estate Advisory and Brokerage Services
December 23, 2022
Kosmont Realty 14 | P a g e
(424) 297-1076
www.kosmontrealty.com
In the event Owner fails to make payments within the time limits called for herein, then from the date due until paid the delinquent payment shall bear interest at the rate of 10% per annum.

By signing below, Owner and Broker acknowledge that they have read, understand, accept and have received a copy of this Agreement.

Owner:

City of Arroyo Grande
Broker:

Kosmont Real Estate Services, a
California corporation
CA DRE #: 02058445
By:

___________________________
By:

___________________________
Date:
___________________________
Date:
___________________________
Address:
300 East Branch Street
Arroyo Grande, CA 93420
Address:
1601 N. Sepulveda Blvd., #382
Manhattan Beach, CA 90266
Telephone:
___________________________
Telephone:
(424) 297-1070___________

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Whitney McDonald, City Manager
Bill Robeson, Assistant City Manager/Public Works Director BY: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall DATE: May 23, 2023
SUMMARY OF ACTION:

Authorize the display of the LGTBQ+ Pride Flag (“Pride Flag”) at Heritage Square Park and at City Hall during the month of June 2023 in recognition of LGTBQ+ Pride Month.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no financial impact and minimal impact on personnel resources related to authorizing the display of the Pride Flag.

RECOMMENDATION:

Authorize the display of the Pride Flag during the month of June 2023 at Heritage Square Park and at City Hall.

BACKGROUND:

On September 22, 2020, the City Council adopted a set of Top 10 Priorities for Fiscal Year 2020-21 identifying the Council’s major goals. One of the identified priorities was to “develop and implement a Council-adopted goal to promote diversity, equity, and inclusion.” A similar goal and priority was included in the Fiscal Year 2022-23 Council Goals and Priorities adopted with the Fiscal Years 2021-23 Biennial Budget, which stated a goal to “adopt and implement Diversity, Equity, and Inclusion initiatives.” In May 2021, the City Council considered and adopted a City Flag Display Policy relating to the display of flags (Attachment 1). The adopted Flag Display Policy (Attachment 2) outlines the procedures and standards for the display of flags at City facilities, including the display of commemorative flags at City Hall and Heritage Square Park. As set forth in the policy, commemorative flags may only be displayed after being authorized by 4/5 members of the City Council and as an expression of the City’s official sentiments. Upon

Item 9.f.

City Council
Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall May 23, 2022

City Council authorization of the display of a commemorative flag, the City will display it at City Hall and/or Heritage Square Park during the designated period.

Also during the May 25, 2021 City Council meeting, the City Council authorized the display of the commemorative Pride Flag during the month of June 2021, at Heritage Square Park, where the first Five Cities Pride Celebration occurred in 2019, and at City Hall.

At the January 11, 2022 City Council meeting, the City Council adopted Resolution 5142, which adopted a Diversity, Equity, Inclusion, and Justice Policy (Attachment 3), acknowledging the City’s commitment to the principles of diversity, equity, inclusion, and justice and to implement measures to support greater inclusivity for the community.

ANALYSIS OF ISSUES:

City Hall has two flag poles and the City of Arroyo Grande has historically displayed the United States Flag, the California State Flag, and the Arroyo Grande City Flag. The United States Flag is also displayed at other City facilities such as the Recreation Services Building at Elm Street Park and at the Corporate Yard. The Police Station also has three flag poles that can be used to display flags.

As stated in the adopted Flag Display Policy, the City’s flagpoles are not intended to serve as a forum for free expression by the public. Rather, the City's flagpoles are to be used exclusively by the City, where the City Council may display a commemorative flag as a form of government expression. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party. Instead, the policy states that such flag, as an expression of the City’s official sentiments, must be requested by a member of the City Council itself.

The Government Speech Doctrine, defined by the United States Supreme Court, establishes that a government organization, such as the City of Arroyo Grande, may advance its own expression without requiring viewpoint neutrality when the government itself is the speaker, so long as its expression does not show religious preference or encourage a certain vote in an election. Therefore, the City could act, based on the Policy, to display a commemorative flag as a form of government expression, so long as the commemorative flag does not show religious preference or encourage a certain vote in an election. Consequently, if the City Council authorizes display of a commemorative flag, the display of the commemorative flag would be an exercise of government expression, where the City is the speaker (i.e., government speech).

Council Members Barneich and Mayor Ray Russom have requested that the City Council consider authorizing the display of the commemorative Pride Flag. According to the Library of Congress, Lesbian, Gay, Bisexual and Transgender Pride Month (“LGBTQ+ Pride Month”) is currently celebrated each year in the month of June to honor the 1969

Item 9.f.

City Council
Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall May 23, 2023

Stonewall riots in New York City. The Stonewall riots were a tipping point for the Gay Liberation Movement in the United States. In the United States, the last Sunday in June was initially celebrated as “Gay Pride Day,” although the actual day was flexible.

Eventually, in major cities across the nation, “Gay Pride Day” grew to encompass a month-long series of events. Today, celebrations include pride parades, picnics, parties, workshops, symposia and concerts. Memorials are also held for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual, transgender, and queer individuals have had on history locally, nationally, and internationally. Display of the Pride Flag is consistent with the adopted Diversity, Equity, Inclusion, and Justice Policy and the Fiscal Year 2022-23 Council Goals and Priorities. If approved by at least four Council Members, this will be the third consecutive year that the City has displayed the Pride Flag during the month of June.

ALTERNATIVES:

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

1. Authorize the display of the Pride Flag at Heritage Square Park and at City Hall during the month of June, 2023.

2. Do not authorize display of the Pride Flag; or

3. Provide other direction to staff.

ADVANTAGES:

Authorizing display of the Pride Flag in recognition of LGTBQ+ Pride Month will commemorate an important social movement. The display of the Pride Flag also demonstrates the City’s commitment to diversity, equity, inclusion, and justice.

DISADVANTAGES:

No disadvantages have been identified.

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. May 25, 2021 Staff Report

2. Resolution 5083 – Adopting a Policy on Display of Flags

3. Resolution 5142 - Adopting a Diversity, Equity, Inclusion and Justice Policy

ATTACHMENT 1
Attachment 1 is available as a link:

May 25, 2021 Staff Report

ATTACHMENT 2

RESOLUTION NO. 5142

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ADOPTING A DIVERSITY, EQUITY,

INCLUSION, AND JUSTICE POLICY
WHEREAS, it is the mission of the City to make Arroyo Grande the best place possible for everyone who lives, works, and visits; and
WHEREAS, the City is committed to supporting diversity, equity, inclusion, and justice, in all facets of society; and
WHEREAS, the City of Arroyo Grande does not currently have a policy specifically stating its commitment to diversity, equity, inclusion, and justice; and WHEREAS, the City Council desires to establish a diversity, equity, inclusion, and justice DEIJ) policy that provides guidance and standards for the City to model and implement the aforementioned objectives within the community and the City organization; and WHEREAS, in adopting this policy, the City Council declares that it is vital to assume the responsibility to face the challenges and seize opportunities created by diversity, and to identify opportunities in policies, regulations, and guidance to address systemic inequities.

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

1. All recitals set forth and above, are true, correct and incorporated herein.

2. The Diversity, Equity, Inclusion, and Justice ( DEIJ) Policy, attached hereto as Exhibit A and incorporated herein, is hereby adopted.

3. This Resolution shall be effective immediately upon its adoption.

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

AYES: Council Members Storton, Paulding, Barneich, George, and Mayor Ray Russom NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 11th day of January, 2022.

ATTACHMENT 3

RESOLUTION NO. 5142
PAGE 2

CAREN R USSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
te •
WHITNEY MC,IDONALD, 11TY MANAGER
APPROVED AS TO FORM:

C
TIMOTHY J. CARMEL, CITY ATTORNEY

Exhibit A

CITY OF ARROYO GRANDE

DIVERSITY, EQUITY, INCLUSION, AND JUSTICE POLICY
POLICY:

The City is committed to supporting diversity, equity, inclusion, and justice ( DEIJ) in all facets of society, the principles of which include fairness of treatment, recognition of rights, acceptance of responsibilities, commitment to equity and justice, and dedication to expanding opportunities for all. The mission of the City is to make Arroyo Grande the best place possible for everyone who lives, works, and visits here. Valuing diversity is a core City principle that will be practiced and communicated at all levels of the organization.

PURPOSE:

Members of our community face challenges and opportunities related to their race, religion, gender, ethnicity, language, age, sexual orientation and gender identity, socioeconomic background, and diverse abilities. It is important for members of our community and the City as a whole to assume the responsibility of facing the challenges and seizing the opportunities created by diversity, and to identify opportunities in policies, regulations, and guidance to address systemic inequities.

Inclusion and equity do not seek to 'treat everyone the same,' but recognize that everyone is different, that there are strengths inherent in those differences, and that people' s needs are met in different ways. This can be as a resident, visitor, City Council Member, City Advisory Body Member, or employee. Diversity awareness recognizes that each individual is unique, engendering recognition, respect, and celebration of the added value that differences bring.

DEFINITIONS:

Diversity
Diversity refers to the variety of similarities and differences between people based on which they experience advantages or encounter barriers to opportunities, including but not limited to: gender, gender identity, ethnicity, race, native or indigenous origin, age, generation, sexual orientation, culture, religion/ belief system, marital status, parental status, socio- economic status, appearance, language and accent, physical and mental ability, mental health, education, geography, and nationality.

Equity
Equity refers to the consistent and systematic, fair, just, and impartial treatment of all individuals, seeking to ensure that all people have access to the same opportunities and resources while recognizing that people do not all start from the same place due to systemic and individual advantages and barriers.

POLICY #:

DIVERSITY, EQUITY, INCLUSION, AND JUSTICE
PAGE 2
Inclusion
Inclusion seeks to support people with different identities to feel valued and welcomed within a given setting, including fostering a sense of belonging by centering and amplifying the voices, perspectives, and styles of those who experience more barriers based on their identities.

Justice
Justice refers to the practice of directly dismantling barriers to resources and opportunities in society so that all individuals and communities can live a full and dignified life.

IMPLEMENTATION:

The City is committed to modeling and implementing diversity, equity, inclusion, and justice within the community and the City organization, and will do so through measures that include but are not limited to the following:

A. Provide informed, authentic leadership supporting diversity, equity, inclusion, and justice by:

1. Connecting diversity, equity, inclusion, and justice to the City' s mission as critical principles to ensure the well- being of the City' s employees and the community;

2. Acknowledging and dismantling inequities within the City' s policies, systems, programs, and services, including continual review and updates to support ongoing progress;

3. Embedding language in the City' s plans, policies, and goals consistent with the intent of this Policy to promote diversity, equity, inclusivity, and justice;

4. Exploring potential underlying, unquestioned assumptions that interfere with diversity, equity, inclusivity, and justice;

5. Advocating for and supporting executive team- level thinking about how systemic inequities impact the City' s work, and how best to address these inequities in a way that is consistent with the City' s mission and this Policy;

6. Challenging assumptions about what it takes to be a strong leader within the City organization and who is well- positioned to provide leadership;

7. Practicing and encouraging transparent and inclusive communication in all interactions, including focus on and commitment to reducing and preventing incidents of prejudice;

8. Committing time and resources to expand diverse leadership opportunities within the City Council, employees, committees, and advisory bodies, including outreach to diverse social and professional organizations and publications;

9. Championing diversity, equity, inclusivity, and justice by leading with respect, awareness, and acceptance;

10. Committing to keeping current on " best practices" that take place in other cities and government jurisdictions, and partnering with other cities in sharing information and efforts;

POLICY #:

DIVERSITY, EQUITY, INCLUSION, AND JUSTICE
PAGE 3

11. Expecting all employees to exemplify this Policy in all workplace interactions and through everyday practices.

B. Abide by the following to help promote diversity and inclusion in the workplace:

1. Pursue cultural competency throughout the organization by creating substantive learning opportunities and formal, transparent policies;

2. Pursue and evaluate quantitative and qualitative research related to justice, equity, diversity, and inclusion initiatives and barriers to guide the implementation of effective measures;

3. Make incremental, measurable progress toward the visibility of the City' s diversity, equity, inclusion, and justice efforts;

4. Improve the City' s cultural leadership pipeline by creating and supporting programs and policies fostering leadership that reflects the full diversity of American society;

5. Identify and incorporate DEIJ efforts and components in the City' s recruitment, retention, and training efforts;

6. Pool resources and expand offerings for underrepresented communities by connecting with other organizations committed to DEIJ efforts;

7. Develop and present sessions internally on DEIJ to provide education and resources and to support full implementation of this Policy;

8. Promote opportunities for organizations, businesses, and advocacy groups to share information with the City and with each other regarding the changing realties of the workforce and workplace;

9. Be intentional in bringing awareness and consciousness of bias during the hiring, promoting, and/ or evaluating process and institute practices to increase DEIJ in all aspects of recruitment and retention;

10. Advocate for public and private- sector policies that DEIJ and challenge systems and policies that create inequity, oppression, and disparity.

C. Promote inclusive outreach to diverse communities by:

1. Identifying traditionally underrepresented or marginalized communities within the City and developing and implementing strategies to increase effective communication and engagement;

2. Regularly conferring with representatives of diversity groups to better understand and support the community and to ensure ongoing application and review of this Policy;

3. Work with community partners to support opportunities for professional leadership and DEIJ training for small businesses within the City;

4. Intentionally incorporate DEIJ initiatives into the City' s economic development efforts, including support for small and diverse businesses;

5. Evaluating barriers to participation in decision- making processes by traditionally underrepresented or marginalized communities and developing mechanisms to reduce identified barriers;

6. Fostering an environment of inclusivity in internal and public- facing events, meetings, and processes through intentional application of this Policy.

OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5142 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 11th day of January, 2022.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 13th day of January, 2022.

JESSICA MATSON, CITY CLERK

MEMORANDUM
TO: CITY COUNCIL
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
DATE:

Agenda Item 9.f – Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall
May 23, 2023
Attached is correspondence received for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Clerk
City Website (or public review binder)

From: Hilary Norcross
To: public comment
Subject: Pride flag display in June
Date: Thursday, May 18, 2023 4:18:19 PM
Dear esteemed members of the AG City Council,
I write to you today as a proud resident of Arroyo Grande, eager to express my wholehearted support for the initiative to fly the Pride Flag in our city during the month of June. The significance of the pride flag for the LGBTQ+ community cannot be overstated, as it serves as a powerful symbol of unity, inclusivity, and acceptance. By displaying this flag, we would be sending a resounding message of compassion and understanding that resonates with every member of our diverse community.

I sincerely hope that you will join me in recognizing the importance of this action and consider making it a permanent tradition in our city's commemoration of Pride month.

Together, we can showcase Arroyo Grande's unwavering commitment to fostering a society that embraces and celebrates the inherent dignity and worth of every individual.

Thank you for your time and thoughtful consideration.

Sincerely, Hilary Norcross
--
Hilary Norcross
(texts are great and better than voice mail)

From: Catherine Talley
To: public comment
Subject: NO LGBTQ symbols in our village
Date: Saturday, May 20, 2023 10:46:47 PM
Hello,
My name is Catherine Talley and I am writing to you all on behalf to please not allow any sorts of LGBTQ symbols in our community. We have such a special and unique community and would hate to have these ungodly symbols shown. Please keep this community the way it is. It is so special to us. Thank you for your time and consideration.

Kindly,
Catherine Talley

From: Elliot Talley
To: public comment
Subject: Pride flag
Date: Saturday, May 20, 2023 11:37:50 PM
Hi,
I would like to share some of my thoughts in regards to the pride flag being flown in the town of Arroyo Grande.

I believe the only flags that should be flown is our city flag, state flag and the American flag. These flags are the only flags that represent us all who live in the community.

The pride flag supposedly symbolizes equity, diversity, inclusion, and justice. But In fact that’s what the American flag symbolizes and so much more.

The LGBT movement has followed down a path that simply cannot be ignored. Not all in the LGBT community are this way, but it seems like it’s been a trend lately. The trend of sexualizing kids at a young age by encouraging them to get brutal sex changes as a minor and performing drag shows around innocent little children. We must protect our children. Once they become adults they can do whatever it is they want to do.

Some would questions why mental health is such a huge issue in our country. The attack by the LGBT community in wanting to indoctrinate these little children certainly doesn’t help. We must protect our children especially in this amazing little town.

This flag represents so much more.

Please do not fly this flag. We should not be flying a flag that is controversial. Much like this one.

Thank you,
Elliot

From: Curtis Henry
To: public comment
Subject: Don’t fly the Pride Flag
Date: Sunday, May 21, 2023 6:44:56 AM
I am writing as an individual who has lived in Arroyo Grande my entire life, to let you know that I am disappointed that the city is even considering flying a pride flag in public places. This is completely inappropriate and unacceptable. We ask that you do not pass this.

Thank you for in advance for reading this and doing what’s best for our community.

Sent from my iPhone

From: Email Service
To: public comment
Subject: Pride month
Date: Sunday, May 21, 2023 3:32:56 PM
Board members: In your agenda you are making a declaration for celebrating June as pride month as it is one of the 17 recognized heritage celebrations on our current calendar. I would take great issue with the city council flying a pride flag at any government building or in the downtown village area. There are no flags flown for the other16 heritage celebrations, why should we fly one for this particular month? Regardless of our race, color, creed, or religion we are residents of Arroyo Grande, California, and the United States. This city is made up of Caucasians, Hispanics, Blacks, American Indians, Pacific Islanders, Germans, Italians, Irish, and other races, but what we have in common is that we are all Americans and that is what should be celebrated and recognized. A city government building should only fly the flags of the city, state, and country.

Thank you,
Jim Owen

From: Karen Miller
To: public comment
Subject: SUPPORT FLYING ONLY OUR USA, CALIFORNIA, AND CITY FLAGS IN ARROYO GRANDE CITY HALL & PARK Date: Sunday, May 21, 2023 10:54:37 PM
Dear City Council,
As citizens living in Arroyo Grande we have a concern along with many others over the proposed Pride Flag to be flown at the city hall and heritage park for the month of June. Doing this shows favoritism and support of this group by the City of Arroyo Grande over many other groups who have flags and beliefs whose flags are not flown.

We feel that we should only fly our national, state and city flags and no other which we as Americans should support.

Thank you for taking the time to listen to your citizens’ concerns.

Blessings,
Robert and Karen Miller
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From: Anne Harvey
To: public comment
Subject: Vote
Date: Monday, May 22, 2023 11:30:49 AM
Good morning,
I would like to express my disapproval for flying the pride flag at government buildings. I feel not everyone gets recognized equally and other flags aren’t flown for other groups using tax dollars.

I appreciate for your time and service serving our beautiful city of Arroyo Grande.

Thank you,
Anne Harvey
Sent from my iPhone

From: [email protected]
To: public comment
Subject: re Flying Flags
Date: Monday, May 22, 2023 11:31:57 AM
To Whom It May Concern,
As a resident of Arroyo Grande, I would like to express my disapproval with using taxpayer funds to fly flags for any group. This would include the pride flag. Should the City choose to fly the pride flag, I would like to express my support for flying flags of other groups for awareness, as well, such as flying flags for disability awareness.

Thank you for your consideration!
Sincerely,
Brett Harvey

From: Catherine Cage
To: public comment
Subject: Pride flag objection
Date: Monday, May 22, 2023 10:32:47 AM
Dear Ciity Council Members,
First of all, thank you for representing our local community.

This letter is to inform you that I am opposed to the flying of the pride flag.

The only two flags that I deem as necessary are the American flag and the California flag. We fly no other flags that are associated with representation of individuals for any other month of the year. This is not a statement of pro-pride or anti-pride. This is a statement from an American and a Californian that is one of your constituents.

I salute you with the upmost respect and honor for representing our beautiful community.

Thank you for your thoughtful consideration of this issue.

Sincerely,
Catherine Cage

From: Chris Cara Lacey
To: public comment
Subject: Pride Flag
Date: Monday, May 22, 2023 10:28:22 AM
To whom it may concern:

I would like to suggest NOT flying the PRIDE flag during the month of June as it seems it would be in the city’s best interest to stay neutral.

The American flag, state and city flag are enough. Does the city fly an Autism awareness flag during its month? Or is the city willing to fly the Christian flag during Christmas and Easter? My guess is no b/c it chooses to stay neutral as none of these actually have anything to do with the city of Arroyo Grande itself. Encourage the community to show their local support at their residences but the city itself doesn’t need to be involved-and this is not b/c YOU DON’T support it, it’s just not your role.

Thanks for considering,
Sincerely,
Cara Lacey
Sent from my iPhone

From: Camille Nordwall
To: public comment
Subject: Preferential outreach flag
Date: Monday, May 22, 2023 9:27:45 AM
Dear Arroyo Grande Council Representatives,
It has come to my attention that you are considering flying a “pride” flag on our City Hall building.

How can you show preferential treatment to a group concerning their sexual preferences? Would you fly a heterosexual flag for a month, celebrating another group of people’s sexual preference? As a long standing resident and voter, it offends me and my family to think that our government has anything to do with peoples’ private matters. What happens in private, should stay private.

My family and I attend a local church that loves and heavily invests in our amazing Arroyo Grande community. We are greatly offended by this proposal and ask that you do not even entertain flying a “pride” flag on our City Hall building.

Please stay with flags that represent our country, our government and our constitution - not particular lifestyles.

Thank you,
Jan Camille Nordwall

From: Connie Rice
To: public comment
Subject: Please refrain from flying Pride flag in June
Date: Monday, May 22, 2023 10:00:35 AM
Dear Arroyo Grande City Council members,
Please refrain from flying the Pride flag in June. The recent agenda of those who promote "pride" against the health and well-being of children through dangerous life-altering drugs and surgeries is quite controversial. Please do not promote this agenda. Arroyo Grande is a family community that seeks to protect children from ideologies that purposely confuse them when they are too young to understand the consequences. When I was young, all of society worked to protect the innocence of children - all aspects of the culture worked together to keep the seedy aspects of culture from them (TV, movies, schools, government, etc.). Not only is this no longer the case, but all of those things have lined up to do just the opposite and undermine parents in ways never before seen. The attacks on families have been relentless.

The results have been so devastating, with children suffering from so much anxiety, fear, confusion, drug use, promiscuity, and self-harm. Obviously, not all of this falls at the feet of the "pride" movement, but the ideology that it is promoting is puts inappropriate sexual discussions in front of children and makes it all but impossible for the innocence of children to be protected until they are old enough to comprehend the issues and consequences of lifealtering choices. This is no longer about everyone letting everyone else live as they like without discrimination - this recent ideology puts children at serious risk. Some children go through a stage of wanting to be a mermaid - should their legs be amputated and a prosthetic tail be attached to them in the name of affirming their desire? Male and female is not a social construct - it is a biological fact. People either have chromosomes that are XX or XY.

It is impossible for someone to change this, so the concept of changing one's gender is antiscience and defies reality. A number of young people have changed their minds (as they often do about many things) and want to "detransition", but are finding that some of the damage done to them is permanent. Please reconsider promoting this ideology as being representative of the community of Arroyo Grande. Please look into this issue carefully before making a decision.
https://link.edgepilot.com/s/924fbee3/PgZVBgc66kuM0hUN4B5WmA? u=https://www.thepublicdiscourse.com/2016/09/17753/
https://link.edgepilot.com/s/4fdd17aa/vecXc_evQE29cV9vB9LFKg? u=https://www.lifesitenews.com/news/at-worlds-first-gender-detransition-conference-womenexpress-regret-over-drugs-mutilation/ https://link.edgepilot.com/s/f198cb53/Ylk0Cx9-w0at4pWjBBuswg? u=https://sexchangeregret.com/
Thank you so much for your consideration in this important matter. I recognize that in our present cultural environment, only courageous people will have the fortitude to stand in defense of the innocence of children.

Best regards, Constance Rice
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From: Diego Peinado
To: public comment
Subject: Please don’t add the rainbow flag.

Date: Monday, May 22, 2023 9:37:42 AM
Hello, my name is Diego Peinado.

I am a current resident of Santa Maria who regularly interacts and intermingles with the citizens of Arroyo Grande. I have heard tell of the council putting up rainbow flags in place of the American flag. Though the sentiment is heard and is well intentioned, I can’t help but notice that it goes against the rights of other citizens. The American flag stands for freedom and justice for all individuals not just one singular group. The flag is already an icon of equality and integrity for rights of the people and I don’t think the entire city needs to have the symbol of our freedoms as American citizens be reduced to the colors of the rainbow. With all due respect to our brothers and sisters in the lgbtq + community, they can fly their own flags on their residences if they do choose to. To have our flag reduced to what it truly symbolizes is not doing our country nor our city any justice for those affected by the change of the flag.

I implore the council to reconsider the motion to putting the rainbow flag up.

Sent from my iPhone

From: Emmylou Skelly
To: public comment
Subject: Fwd: The Sin of Pride According to the Bible
Date: Monday, May 22, 2023 9:58:40 AM
We want gay trans LGBTQ+ to live their lives in peace and happiness. We love everyone and hope they find happiness but we don't want a pride flag because it is a waste of money.

There is also biblical context for why not have the flag which was brought to my attention.

Here it is. We are a peaceful loving community and have many churches that would consider the flag an impedement on peace and happiness for them. https://link.edgepilot.com/s/efb9b755/wtyj-XLFWk2j7IhweULHrw? u=https://www.learnreligions.com/the-sin-of-pride-according-to-the-bible-5080290 Links contained in this email have been replaced. If you click on a link in the email above, the link will be analyzed for known threats. If a known threat is found, you will not be able to proceed to the destination. If suspicious content is detected, you will see a warning.

From: James Folkrod
To: public comment
Subject: Concerns Regarding the Display of the Pride Flag in June Date: Monday, May 22, 2023 9:30:23 AM
Dear Arroyo Grande City Council,
I hope this letter finds you well. I am writing to express my concerns about the decision to fly the Pride flag during the month of June in our city. While I understand the intention behind showing support and inclusivity towards the LGBTQ+ community, I believe it is important to consider the broader implications and potential consequences of such actions.

Firstly, it is crucial to recognize that as a government entity, you represent and serve a diverse population with a wide range of beliefs, opinions, and values. Displaying the Pride flag exclusively may inadvertently alienate or marginalize certain individuals who hold different religious, cultural, or ideological perspectives. A government should strive to be neutral and treat all citizens impartially, irrespective of their sexual orientation or gender identity.

Furthermore, it is important to note that the flag represents a specific social and political movement. While it is true that Pride Month commemorates the struggle for LGBTQ+ rights, it is essential to consider that not all residents of our city may agree with or support every aspect of that movement. Government institutions should remain impartial and focus on serving the entire community, rather than promoting specific social or political agendas.

Moreover, the decision to fly the Pride flag could set a precedent for other interest groups or communities to request the display of their respective flags or symbols.

Granting one group the privilege of displaying their flag may lead to a situation where various organizations demand the same recognition, potentially creating divisions and competing interests within our community.

Instead of promoting a specific symbol, I would urge you to consider alternative approaches to foster inclusivity and demonstrate support for all residents. Initiatives such as educational campaigns, workshops, or community events that promote dialogue and understanding among diverse groups would be more inclusive and respectful of different perspectives.

I believe that it is important for our city government to maintain neutrality while serving all residents equally. By refraining from flying the Pride flag, you would ensure that the government remains focused on its primary duty of governance and service to the community as a whole, while still recognizing the importance of equality and respect for all individuals.

Thank you for taking the time to consider my perspective. I trust that you will give due consideration to the concerns raised herein. Should you wish to discuss this matter

further, I would be happy to engage in constructive dialogue.

Sincerely,
Jim Folkrod

From: Jolene Henry
To: public comment
Subject: pride flag
Date: Monday, May 22, 2023 7:32:51 AM
Dear Arroyo Grande City Officials,
I am so grateful for all of your hard work in our community.

I wanted to express concern regarding the issue of the City Council's consideration to fly the Pride flag for the month of June. It seems very imbalanced to choose just this ONE group over all of the many other groups that could or should have a flag flown to represent them (ie. Asian Americans, American Indians, African Americans, Hispanics, Military Vets, Disabilities, Religious groups and on and on). How can just one group be chosen to have a flag flown without consideration of the rest of the plethora of groups who would also want to see their flag represented? A vote to approve the Pride flag will open up a can of worms to the countless other groups that desire to be honored in this way. Where do you draw the line? Thank you for your time.

Sincerely,
Jolene Henry
Arroyo Grande, CA

From:

To: public comment
Subject: Flags
Date: Monday, May 22, 2023 10:53:44 AM
Dear City Council,
Please always only fly our national, state and city flags.

Thank you, Jack & Patti Mallory
Sent from the all new AOL app for iOS
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From: Jeremy Sutherland
To: public comment
Subject: Pride Flag for month of June
Date: Monday, May 22, 2023 3:08:34 PM
Dear Council Members and City Mayor,
In your May 23 memorandum the subject has the acronym LGTBQ+ instead of LGBTQ+ (T and B swapped). Was there a reason for this? Page two near the bottom, has the "correct" order although there are newer renditions, such as LGBTQIA2S+.

The reason for asking the above question is that "LGB" are sexual orientations. Why is there a need to display an individual's sexual orientation on a public flag in our small conservative city?
Secondly, the remaining letters are linked to gender dysphoria or mental disorders. These mental disorders cause huge harm to those who follow through with the "gender affirming care" whether it be through hormone treatments or surgeries. I have read too many heartbreaking stories of people who transitioned as children to only regret the decision later in life (Chloe Cole only being one of the voices). Flying this flag where children will walk by on a daily basis is not healthy for the children of our community. Will the flying of this flag not cause more gender confusion for our children?
I strongly urge you to vote no on flying the pride flag on any public building in Arroyo Grande.
--
Jeremy Sutherland
Associate Pastor of Youth and Families
Harvest Church
Office: 805.489.2037
agharvest.org
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From: JAYNE TURNER
To: public comment
Subject: Gay flag
Date: Monday, May 22, 2023 9:57:14 AM
My opinion is that only 2 flags should ever be flown, the American flag snd the CA flag.

Please stop dividing your constituents!!
Thank you
Sent from my iPhone

From: Ken Enns
To: public comment
Subject: Pride Flag
Date: Monday, May 22, 2023 11:03:29 AM
To Whom it may concern:

It is our understanding that the city is considering flying the LGBTQ+ Pride flag during June, honoring the LGBTQ+ community.

Obviously, this is a very divisive issue and declares the city’s position to be on one side of this political agenda.

We would just ask that the city remain neutral and not create a divisive atmosphere. We don’t believe the city should promote any religious or political agenda in favor of one group over another.

Please give this careful consideration before making such an important decision.

Thank you,
Ken and Jan Enns
Sent from my iPhone

From: Kurt S
To: public comment
Subject: Pride flag
Date: Monday, May 22, 2023 1:49:55 PM
AG City council,
I am writing you today to ask that you refrain from flying the pride flag on any city building. I think it’s the wrong move and I know for sure it doesn’t represent the majority of people living in AG and I know it sends the wrong signal to our youth.

Respectfully,
Kurt Saltzman.

Sent from my iPhone

From: Linda Chuises
To: public comment
Subject: Rainbow Flags
Date: Monday, May 22, 2023 2:06:13 PM
May 22, 2023
Arroyo Grande City Council:

I am writing this to show my objection to “rainbow” flags being hung & displayed in our Village for the month of June.

First of all, I’m NOT Homophobic! I have a gay nephew, that I love to death, & friends that are LGBTQ. I’m objecting on two accounts.

1. I don’t think one small group of people should be honored over other larger groups of people. I don’t believe any other individual groups are represented by flags flying in the village, and rightly so. We should not be flying flags or banners for individual groups. Where does it end? According to NBCNews.com on 2/17/22 only 7.1% of the USA population is LGBTQ. While Arroyo Grande is a very inclusive community, we do not need to single out groups to prove that.

2. While you are doing this to show “support” to the LGBTQ community other groups of people are being persecuted for their beliefs and there is no “flag support” for them.

Case in point: After a Pro-Life march in Washington DC, several students & their chaperones were ejected from the Smithsonian Museum for wearing Pro-Life hats & t-shirts. At the same time people wearing Pro-Abortion garb were not ejected. Dailycaller.com & Lifenews.com 2/7/23.

I think we all could come up with numerous other examples.

Please vote no on the “rainbow” flags & keep the flags totally community oriented! Sincerely,
Linda Chuises

From: Linda Ruberto
To: public comment
Subject: Pride Flag
Date: Monday, May 22, 2023 8:59:41 AM
Dear City Council Members,
I’m writing to express my opposition to flying the “pride flag” at City Hall. As an AG business owner and tax payer I find this proposition appalling.

I write as a Christian, and as we do not have City recognition as such, I don’t expect the City to cater to this agenda.

Our town has many people of faith who while sadly are not expecting our government to recognize God from it’s institutions as a “show of support”, certainly it shouldn’t support a perverse sexual orientation (or anything else of a sexual nature) to be paraded on our public property.

Thank you for your consideration.

Linda Ruberto

From: Maddie Honeycutt
To: public comment
Subject: Pride flag
Date: Monday, May 22, 2023 3:41:12 PM
Hello!
My name is Madison Honeycutt and I have lived in Arroyo Grande my whole life (22 years). When I heard about the pride flag being flown in our town I was distraught because although I do not harbor any hate for the LGBT community I see no place for the flag to be flown. Our town does not need to go out of its way to fly a flag of any organization except for our state and country because that is what truly brings us community. Many people like myself disagree with the beliefs and standards of the LGBT community and especially in the light of recent events such as companies and sporting events letting trans individuals dominate over women it is repulsing to think that our town would boldly support that oppression of women. As a woman I am threatened by this community in that way and as said before I have no hate towards them but it is not something I support and even if many members of Arroyo Grande do it is not something that represents our town as a whole especially as stated before in light of recent LGBT events.

Thank you for your time and understand a taking the concerns and comments of your town members it does not go unnoticed.

Best,
Maddie Honeycutt

From: Matt List
To: public comment
Subject: Pride flag
Date: Monday, May 22, 2023 8:56:57 AM
As a longtime member of the community, I'm opposed to the pride flag being given any priority. We have so much to be united about and this only causes division. It is not representative of how so many of us want to live and raise our children.

Thanks for your consideration on this matter.

Matt

From: Mike Rozo
To: public comment
Subject: Ride Flag
Date: Monday, May 22, 2023 12:17:37 PM
To whom it may concern,
I am Against running the Gay Pride Flag for the month of June. People’s personal feelings does not need to be publicly displayed for all to see. Please do not allow this.

Thank you
Mike Rozo

From: Maggie Summers
To: public comment
Subject: Pride flag vote
Date: Monday, May 22, 2023 2:09:58 PM
Dear AG City Council,
I am unable to attend tonight’s meeting, but I am writing to ask for you to vote AGAINST flying a pride flag at city hall. The only flags that belong flying on government buildings are the American flag and California star flag! The pride flag represents a lifestyle, NOT our state or federal government.

Thank you,
Maggie Summers
Arroyo Grande

From: Nancy Jordan
To: public comment
Subject: Re: regards flying pride flag month of June
Date: Monday, May 22, 2023 1:18:30 PM
I'm against flying the pride flag at any Government building for the month of June. I believe this is wrong. The only flags to be flown is our American Flag because we are all Americans and our California Flag because that is our state Flag.

On Mon, May 22, 2023, 1:05 PM Nancy Jordan < > wrote:

Praying City Council have wisdom and not fly the Pride Flag for the month of June. This is totally wrong . I feel proud to fly out American Flag and Flag of California.Our National flag because we are all Americans and California Flag because we live in a great state.

From: Nancy Jordan
To: public comment
Date: Monday, May 22, 2023 1:05:29 PM
Praying City Council have wisdom and not fly the Pride Flag for the month of June. This is totally wrong . I feel proud to fly out American Flag and Flag of California.Our National flag because we are all Americans and California Flag because we live in a great state.

From: Neal O"Hagan
To: public comment
Subject: Flying the pride flag (don’t)
Date: Monday, May 22, 2023 1:56:23 PM
Dear AG city council,
Under consideration this week is flying the Gay Pride flag next month. I urge the council to not fly the flag. As the politics of supporting the LGTQ+ community evolves we as citizens find ourselves on a slippery slope when we support flying of the flag.

What exactly are we celebrating, not the same things we supported just a few years ago.

Now the flag represents celebration of men in women’s sports, men in women’s bathrooms, men scantily clad in female attire reading to young children. When does it stop? When do we recognize that flying the flag does not remind us of the oppression of this community but now represents celebration of just plain immoral behavior? Stand your ground, don’t vote to display this flag and celebrate the moral decline of our community and the sexualization of our kids and grandkids.

Thank you
Neal O’Hagan
Arroyo Grande, CA 93420
Sent from my iPad

From: Nancy Puder
To: public comment
Subject: Flying pride flag - No
Date: Monday, May 22, 2023 9:09:28 AM
To Whom it may concern…
I would like to voice my concern about flying the pride flag as proposed.

Unless you are also planning to fly a heterosexual flag for a month also, I would consider this extremely discriminatory and equally offensive.

I do not judge what others do or how they live. I simply think this would be a bad decision to fly the pride flag.

Respectfully,
Nancy Puder

From: Pam Richerson
To: public comment
Subject: Flying the lgbtq flag
Date: Monday, May 22, 2023 1:53:07 PM
Dear City Council,
I have lived in Arroyo Grande since 1958. My husband and I were raised here as well as our sons and grandchildren. I am not in favor of flying the LGBTQ flag even for one day. We need to teach our children that natural genders and genes matter! As Humans we need to respect ALL People including those people that are believers in the human race. Our children are getting the wrong information about gender! I was born a women, this matters. Flying this flag is offensive. A.G. has never flown the Christian flag so why would this counsel even consider this flag. It is time to respect and honor male and females and all of the amazing attributes God has made.

My family votes NO on flying the LGBTQ flag!
Mr. and Mrs. Richerson
Arroyo Grande
Sent from Mail for Windows
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From: Patty Ricr
To: public comment
Subject: LGPQ flag
Date: Monday, May 22, 2023 3:42:23 PM
Attachments: SAMPLE LETTERS AGAINST FLYING LGBTQ FLAG.docx Sent from my iPhone

SAMPLE LETTERS AGAINST FLYING LGBTQ FLAG
Created by Bryon Talley
Updated 5-21-23
Dear City Council,
I wish to express my concern over the proposed flag to be flown at the city hall and heritage park.

I feel that we should only fly our national, state and city flags and no other.

Thank you for taking the time to listen to your citizens’ concerns.

Sincerely,
Dear City Council,
Flying the PRIDE flag has the appearance of the city government endorsing a political party. This goes against the city’s flag standards.

We should follow the DEIJ rules the city has and be inclusive. Only showing one group’s flag is not inclusive.

We should also be equitable. Either we fly everyone’s flag, or no flags.

I believe, we should only fly the national, state and city flags.

Thank you.

From: Ron Dee
To: public comment
Subject: Pride month
Date: Monday, May 22, 2023 2:44:32 PM
I would like to communicate my lack of support for promoting or recognizing “Pride Month” in the City of Arroyo Grande.

I do not support such things as flying the gay pride flag over city hall. It is however completely appropriate to fly our national flag as well as our state flag but that is it.

If the city chooses to recognize and fly the gay pride flag over city hall then it is opening up the door to fly flags of many other various groups or belief systems.

Sincerely,
Ron Dee

From: Sheri Honeycutt
To: public comment
Subject: LGBTQIA+ flag
Date: Monday, May 22, 2023 2:19:27 PM
Dear City Council,
I wish to express my concern over the proposed flag to be flown at the city hall and heritage park.

I feel that we should only fly our national, state and city flags and no other.

These 3 flags represent all members of our community. To do anything else would be causing the division you state you are trying to avoid as many people in our community do not feel the flag represents their beliefs.

Thank you for taking the time to listen to your citizens’ concerns.

Sincerely,
Sheri Honeycutt
Sent from my iPhone

From: Stephanie List
To: public comment
Cc: Vonie Chroman
Subject: Please do not hang the pride flag over Arroyo Grande Date: Monday, May 22, 2023 11:57:46 AM
Good afternoon,
Thank you for taking the time to read my public comment. In regard to item 9F on this weeks upcoming meeting.

I raise the question as to why we do raise a flag? Why do we lift up the American flag? Why do we raise the California flag? To answer these questions I would say that we are all Americans, so we are united under the American flag. Also, we are all Californians, so we are united under the California flag.

This upcoming month is pride month and I know that you are considering waving a pride flag. I would like to know why when it does not unite our entire city? I know the previous months and months to come are as such…Latino month, Native American month, Black History Month, special needs disabilities workers month and many more.

Also, there have been numerous other things that we have celebrated each month in our town and yet a flag has not been waived for any of these groups. Why was the flag not waived for the disability workers? My son has a disability and his service providers need to be honored! Why is not a flag waved for Black History Month? My question to you is why should there be special treatment for a certain people group? Why should we raise a pride flag when all of the others people groups listed throughout the entire year do not have a flag raised in their honor? Why is a pride flag going to be raised when it does not unite us all? I am not saying whether I agree with this group or not, but why should this group in particular have a flag raised over our city in two separate locations when it does not unite us all?
Please follow the city of Delano, California, where I grew up. They have looked into the definition of why we raise a flag and have removed the pride flag from their city Council building.

Lastly, if you are going to raise a pride flag, then I would expect a flag to be raised each month for each people group that is being being celebrated that month. I am also part Native American, why is a flag not being raised for my heritage during that particular month?
Please do not raise the pride flag over Arroyo Grande in any location.

Thank you,
Stephanie
Sent from my iPhone

From: SHARON MATHEWS
To: public comment
Subject: Represent all if any
Date: Monday, May 22, 2023 9:55:39 AM
Hello
It’s my understanding you will be meeting to decide if AG should fly the lgbtq etc. flag during the month of June. I would respectfully submit to you that the month we are currently in is Jewish American heritage month. I am proud of my Jewish American heritage but I see no flag flying above the city about it. Why would you support any group (other than possibly fire, police or military..ie public servants) over another? You should not be showing preferential favor or treatment to any group ever. Allowing this to happen would be doing just that. No matter what side of the issues we are on, our representatives should remain neutral. Please do not do this. It is only going to cause more division in our country.

Thankyou
Sharon Mathews
Sent from my iPad

From: William Honeycutt
To: public comment
Subject: LBDGT Flag
Date: Monday, May 22, 2023 12:48:10 PM
As a 20 year resident of the city, I respectfully request that you DENY the groups request the fly their flag. It does not represent the majority of the values of the people that live in the city.

Sincerely,
William Honeycutt

MEMORANDUM
TO: CITY COUNCIL
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
Agenda Item 9.f – Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2023 at Heritage Square Park and at City Hall
DATE: May 22, 2023
Attached is correspondence received prior to 4 PM for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Clerk
City Website (or public review binder)

From: Tanya Schoenheide
To: public comment
Subject: Pride flag
Date: Tuesday, May 23, 2023 1:46:33 PM
Arroyo Grande City Counsel,
I wanted to state my concern over the thought of flying the pride flag at City Hall. I do not think this is acceptable. This is showing favoritism to one group of people. At the same time excluding many others. The only flag that should be flying is the American flag!!! Because that is truly the only flag that is all inclusive!!! Please do not consider the pride flag as one that would be a beneficial to our community!!!

From: Becky Mosgofian
To: public comment
Subject: Public Comment: Support for flying Pride flag at City Hall Date: Tuesday, May 23, 2023 12:44:39 PM
My name is Becky Mosgofian and I am a resident of Arroyo Grande. I ask for your unanimous support of flying the rainbow flag at City Hall for Pride month.

With hate crimes and political agendas against queer and trans communities on the rise, nationally, Arroyo Grande needs to proudly fly the rainbow flag now more than ever - to visually announce we stand in solidarity with these marginalized groups and celebrate the beauty of Pride.

Queer and transgender people experience significantly higher rates of depression and suicide, among other concerns.

This is not because of their identity or who they love. It is about navigating an unsafe world where they consistently hear that they don’t belong.

Flying the rainbow flag, when used to celebrate Pride or the LGBTQ+ community, is not just a celebration of identity, it is a powerful beacon indicating allyship and symbolizing our community’s commitment to being a safe, welcoming space where all belong.

Thank you,
Becky Mosgofian
Arroyo Grande resident