Agenda packet — Arroyo Grande City Council, July 25, 2023 (part 2 of 8)

APPENDICES
milestones established in or pursuant to the Project Schedule. If the City accepts work or makes any payment under this Agreement after a default by reason of delays, the acceptance of such work and/or payment(s) shall in no respect constitute a waiver or modification of any provisions regarding Contract Time, a completion schedule, the Project Schedule or the accrual of liquidated damages. In the event the same is not paid, the Contractor further agrees that the City may deduct the amount thereof from any money due or that may become due the Contractor under the Agreement. This paragraph does not exclude recovery of damages under provisions of the Contract Documents, and is expressly in addition to the City’s ability to seek other damages.

Contractor is to refer to the Project Construction Schedule for duration of individual activities. Liquidated damages may be assessed if any individual activity duration exceeds the time indicated for that activity on the Project Construction Schedule.

ARTICLE VIII. Insurance and Indemnity.

GENERAL
You must obtain and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work by you, your agents, representatives, employees or subcontractors.

Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

Contractor obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.

However, without affecting the rights of City under any provision of this agreement, Contractor shall not be required to indemnify and hold harmless City for liability

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attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.

CITY CONTRACT
Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.

MINIMUM SCOPE OF INSURANCE
Coverage must be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage ("Occurrence,” Form CG-0001).

2. Insurance Services Office Commercial General Liability Endorsement Form (ISO CG 20 10 85 OR CG 20 10 (ongoing operations) & CG 2037 (completed operations).

3. Insurance Services Office Form Number CA-0001 (ED. 1/78), covering Automobile Liability, Code 1, "Any Auto,” and endorsement CA-0025.

4. Workers' Compensation Insurance as required by the State of California and Employer's Liability Insurance;

5. Course of Construction insurance covering for all risks of loss.

MINIMUM LIMITS OF INSURANCE
Minimum limits of insurance must be no less than:

1. General Liability: Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

2. Automobile Liability: Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

3. Umbrella or excess liability insurance: Contractor shall obtain and maintain an umbrella or excess liability insurance policy that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:

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• A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Policies shall “follow form” to the underlying primary policies. • Insureds under primary policies shall also be insureds under the umbrella or excess policies. As required by the State of California;

4. Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.

If required by projects Special Provisions provide:

1. Builder’s risk insurance. Upon commencement of construction and with approval of City, Contractor shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the City has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below.

The named insureds shall be Contractor and City, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to City.

The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the City. The City will act as a fiduciary for all other interests in the Project.

Policy shall be provided for replacement value on an "all risk" basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sublimits sufficient to insure the full replacement value of any key equipment item; (6)

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Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to City to ensure adequacy of terms and sublimits and shall be submitted to the City prior to commencement of construction.

OTHER INSURANCE PROVISIONS
Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, his agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. City and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements 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 Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

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Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Enforcement of contract provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass Through Clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such

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coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.

City’s right to revise requirements. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor a ninety (90)-day advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.

Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a Best Rating of no less than A: V, and who are admitted to write policies in the State of California and contribute to the state guaranty fund.

VERIFICATION OF COVERAGE
Contractors shall furnish the City with certificates of insurance and with original endorsements affecting coverage required by this Section (actual policy). The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by the City and are to be received and approved in writing by the City before work commences. The City reserves the right to require complete, certified copies of all insurance policies, including endorsements affecting the coverage required by these Special Provisions at any time.

SUBCONTRACTORS
The Contractor shall include all Subcontractors as named insured under his policies, or shall furnish separate certificates and endorsements for each Subcontractor. All coverage for Subcontractors shall be subject to all of the requirements stated herein.

PRIVATE CONTRACT

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A certificate of liability insurance with at least $1 million in general liability coverage and a CG 2012 additional insured endorsement attached to it.

ARTICLE IX. Governing Documents. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal therefore, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid or proposal conflicting herewith.

ARTICLE XII. Compliance with Statutes and Regulations. Contractor will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders.

ARTICLE XIII. Notice. All notices or other official correspondence relating to contractual matters between the parties hereto shall be made by personal service or by first class mail, postage prepaid, addressed to the parties as follows:

City: City Clerk
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, California 93420
Contractor: _______________________
_______________________
_______________________
_______________________
ARTICLE XIV. Severability. If any part of this Contract is held invalid by a court of competent jurisdiction, the balance shall retain its full force and effect.

ARTICLE XV. Governing Law; Jurisdiction. This Contract will be administered and interpreted under the laws of the State of California. Jurisdiction of any litigation arising from the Contract will be in San Luis Obispo County, California.

ARTICLE XVI. Authorization. All officers and individuals executing this and other documents on behalf of the respective parties hereby certify and warrant that they have the capacity and have been duly authorized to execute said documents on behalf of the entities indicated.

ARTICLE XVII. Provisions Required by Law. Each and every provision of law and clause required by law to be inserted in this Contract, including but not limited to the following statutorily required provisions, shall be deemed to be inserted herein and the Contract shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either party the Contract shall forthwith be physically amended to make such insertion or correction.

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ARTICLE XVIII. Familiarity With Work. By executing this Agreement, Contractor represents that Contractor has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

ARTICLE XIX. Key Personnel. Contractor’s key person assigned to perform work under this Agreement is Jacob P. Treder. Contractor shall not assign another person to be in charge of the work contemplated by this Agreement without the prior written authorization of the City which shall not be unreasonably withheld.

ARTICLE XX. Changes. City may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by Contractor and City. The cost or credit to City resulting from changes in the services will be determined in accordance with written agreement between the parties.

ARTICLE XXI. Termination. Except as otherwise provided, City may terminate this Contract at any time with or without cause. Notice of termination shall be provided in writing.

In the event of such termination, the Contractor shall cease services as of the date of termination, all finished or unfinished documents, data, drawings, maps, and other materials prepared by Contractor shall, at City’s option, become City’s property, and Contractor will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination. Any reuse of any document for other than their intended use shall be at the sole risk and liability of the City.

Should the Agreement be terminated pursuant to this Section, City may procure on its own terms services similar to those terminated.

ARTICLE XXII. Assignability. This Agreement is for Contractor’s professional services. Contractor’s attempts to assign the benefits or burdens of this Agreement without City’s written approval are prohibited and will be null and void.

ARTICLE XXIII. Permits and Licenses. Contractor will obtain and maintain during the term of this Agreement all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

ARTICLE XXIV. Independent Contractor. City and Contractor agree that Contractor will act as an independent contractor and will have control of all work and the manner in which is it performed. Contractor will be free to contract for similar service to be performed for other employers while under contract with City. Contractor is not an agent or employee of City and is not entitled to participate in any pension plan, insurance, bonus or similar

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benefits City provides for its employees. Any provision in this Agreement that may appear to give City the right to direct Contractor as to the details of doing the work or to exercise a measure of control over the work means that Contractor will follow the direction of the City as to end results of the work only.

ARTICLE XXV. Audit of Records. Contractor agrees that City, or designee, has the right to review, obtain, and copy all records pertaining to the performance of this Agreement. Contractor agrees to provide City, or designee, with any relevant information requested and will permit City, or designee, access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement. Contractor further agrees to maintain such records for a period of three (3) years following final payment under this Agreement.

Contractor will keep all books, records, accounts and documents pertaining to this Agreement separate from other activities unrelated to this Agreement ARTICLE XXVI. Corrective Measures. Contractor will promptly implement any corrective measures required by City regarding the requirements and obligations of this Agreement. Contractor will be given a reasonable amount of time as determined by the City to implement said corrective measures. Failure of Contractor to implement required corrective measures shall result in immediate termination of this Agreement.

ARTICLE XXVII. Final Payment Acceptance Constitutes Release. The acceptance by the Contractor of the final payment made under this Agreement shall operate as and be a release of the City from all claims and liabilities for compensation to the Contractor for anything done, furnished or relating to the Contractor’s work or services. However, approval or payment by the City shall not constitute, nor be deemed, a release of the responsibility and liability of the Contractor, its employees, sub-Contractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by the City for any defect or error in the work prepared by the Contractor, its employees, sub-Contractors and agents.

ARTICLE XXVIII. Rules of Construction. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.

ARTICLE XXIX. Authority/Modification. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. City Manager, or designee, may execute any such amendment on behalf of City.

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ARTICLE XXX. Force Majeure. Should performance of this Agreement be impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other.

ARTICLE XXXI. Time is of the Essence. Time is of the essence to comply with dates and schedules to be provided.

ARTICLE XXXII. Record Audit. In accordance with Government Code section 8546.7, records of both the City and the Contractor shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

ARTICLE XXXIII. Retention of Securities. Public Contract Code Section 22300 permits the substitution of securities for any monies withheld by a public agency to ensure performance under a contract, at the request and expense of the Contractor.

ARTICLE XXXIV. Claims. In accordance with the requirements of Public Contract Code Section 9204(e), a copy of Public Contract Code Section 9204 is attached hereto and incorporated into this Agreement herein.

ARTICLE XXXV. Prevailing Wages and DIR Registration. In accordance with California Labor Code Section 1725.5, Contractors and Subcontractors (as defined by California Labor Code Section 1722.1) bidding on or engaging in the performance of any Public Works contracts in California shall be registered with the Department of Industrial Relation.

In accordance with California Labor Code Section 1770 and 1773, the City has determined that prevailing wage rates apply to this project. Copies of the prevailing rates of per diem wages applicable to this Contract are available from the California Division of Labor Statistics and Research at www.dir.ca.gov/dslr/PWP/index.htm or 455 Golden Gate Ave. 9th Floor, San Francisco, CA 94102. Any employee whose type of work is not covered by any of the classified wage rates shall be paid not less than the rate of wage listed for the classification which most nearly corresponds to the type of work performed.

Pursuant to California Labor Code Section 1775, the Contractor shall forfeit no more than $200 per calendar day, or portion of a day, for each worker paid less than the prevailing rates for such work or craft, and the penalty shall be imposed and distributed pursuant to Section 1775.

The following Labor Code sections are hereby referenced and incorporated into this Agreement herein:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

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5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1776 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

The City will not recognize any claims for additional compensation because of the payment of the wages set forth in the Contract.

In accordance with the requirements of Labor Code Section 1771.4(a)(1), this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

In accordance with the provisions of the California Labor Code, contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Section 1777.1 or Section 1777.17 of the California Labor Code. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid or may have been paid to a debarred subcontractor by a contractor on the Project shall be returned to the Agency.

The Contractor shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

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IN WITNESS WHEREOF: The parties hereto have caused this Contract to be executed the day and year first above written.

CITY OF ARROYO GRANDE CONTRACTOR
By: By:

City Manager
Title
ATTEST:

Director of Legislative & Information
Services / City Clerk
APPROVED AS TO FORM:

City Attorney
-- END OF CONTRACT --

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ATTACHMENTS TO CONTRACT FOR THE CONSTRUCTION OF:
2022 CONCRETE REPAIRS PROJECT
SPECIFICATION NO. PW 2022-07
ATTACHMENT 1 – PROJECT SCHEDULE
ATTACHMENT 2 – BOND FOR MATERIALS AND LABORERS
ATTACHMENT 3 – BOND FOR FAITHFUL PERFORMANCE
ATTACHMENT 4 – NOTICE TO BIDDERS, BID BOOK, SPECIAL PROVISIONS,

TECHNICAL PROVISIONS
ATTACHMENT 5 – PLANS
ATTACHMENT 6 – PUBLIC CONTRACT CODE SECTION 9204

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ATTACHMENT 1 – PROJECT SCHEDULE

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ATTACHMENT 2 – BOND FOR MATERIALS AND LABORERS

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PAYMENT BOND (FOR LABOR AND MATERIAL)
KNOW ALL MEN BY THESE PRESENTS:

The condition of the above obligation is such that whereas said Principal has been awarded and is about to enter into a written contract with the City of Arroyo Grande for the work described in CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF, “2022 CONCRETE PROJECT - PW 2022-07" which is attached hereto, made a part hereof, and to which reference is hereby made for all particulars, and is required by said City to give this bond in connection with the execution of said contract; NOW THEREFORE, if said Principal, as Contractor in said contract, or Principal's Subcontractor, fail to pay any of the persons referred to in Section 3181 of the Civil Code of the State of California for labor performed, skills or other necessary services bestowed, site improvement made, equipment leased, or appliances, equipment implements, machinery, materials, power, provender, provisions, teams, or trucks furnished or used in, upon, for, or about the performance of the work contracted to be done, or for amounts due under the employment Insurance Act with respect to work or labor performed by any such claimant, said Surety shall pay for the same. In an amount not exceeding the sum specified above; and if suit is brought upon this bond, a reasonable attorney's fee to be fixed by the court. This bond is pursuant to the provisions of Ch 7 Div 3, Pt 4, Tit 15, of the Civil Code of the State of California, and shall insure to the benefit of any of the persons referred to in said Civil Code Section 3181, as it now exists or may hereafter be amended, so as to give a fight of action to such persons or their assigns in any suit brought upon this bond. No premature payment by said City to said Principal shall exonerate any Surety unless the City Council of said City shall have actual notice that such payment is premature at the time and it is ordered by said Council, and then only to the extent that such payment shall result in loss to such Surety, but in no event more than the amount of such premature payment.

It is agreed, that any alterations in the work to be done, or increase or decrease of the material to be furnished, which may be made pursuant to the terms of said contract shall not in any way release either the Principal or Surety hereunder, nor shall any extension of time granted under the provisions of said contract release either the Principal or Surety, and notice of such alterations or extensions of the contract is hereby waived by the surety.

WITNESS our hands this day of , 2023.

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Surety Principal
ALL SIGNATURES MUST BE WITNESSED BY NOTARY (Attach appropriate jurats) -- END OF PAYMENT BOND --

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ATTACHMENT 3 – BOND FOR FAITHFUL PERFORMANCE

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FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

That we, , as Principal, and
as Surety, are held and firmly bound unto the City of Arroyo Grande, in the sum of Dollars
($ ) lawful money of the United States, for the payment of which sum, well and truly to be made, has been awarded and is about to enter into a written contract with the City of Arroyo Grande for the work described in the CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE “2022 CONCRETE PROJECT - PW 2022-07” which is attached hereto, made a part hereof, and to which reference is hereby made for all particulars, and is required by said City to give this bond in connection with the execution of said contract;
NOW, THEREFORE, if said Principal shall well and truly do and perform all of the covenants and obligations of said contract on Principal's part to be done and performed at the times and in the manner specified therein, then this obligation shall be null and void, otherwise it shall be and remain in full force and effect. No premature payment by said City to said Principal shall exonerate any Surety unless the City Council of said City shall have actual notice that such payment is premature at the time it is ordered by said Council, and then only to the extent that such payment shall result in loss to such Surety, but in no event more than the amount of such premature payment.

It is agreed, that any alterations in the work to be done, or increase or decrease of the material to be furnished, which may be made pursuant to the terms of said contract shall not in any way release either the Principal or Surety hereunder, nor shall any extensions of time granted under the provisions of said contract release either the principal or surety, and notice of such alterations or extensions of the contract is hereby waived by the Surety.

WITNESS our hands this day of , 2023.

Surety Principal
ALL SIGNATURES MUST BE WITNESSED BY NOTARY (Attach appropriate jurats) -- END OF FAITHFUL PERFORMANCE BOND –

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ATTACHMENT 4 - NOTICE TO BIDDERS, SPECIAL PROVISIONS, TECHNICAL

PROVISIONS, BID BOOK
Attachment to be added prior to contract execution.

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ATTACHMENT 5 – BID ADDENDA

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ATTACHMENT 6 – PLANS

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A32
ATTACHMENT 7 – PUBLIC CONTRACT CODE SECTION 9204
9204.
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner. (b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project.
(B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3) (A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:

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(i) The Department of Water Resources as to any project under the jurisdiction of that department.
(ii) The Department of Transportation as to any project under the jurisdiction of that department.
(iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department.
(iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.
(v) The Military Department as to any project under the jurisdiction of that department.
(vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.
(5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim.
(C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified

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APPENDICES
A34
mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
(D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2) (A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.
(B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.
(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

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(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant.
(4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.
(e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section.
(f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe

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A36
reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.
(g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date.

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APPENDICES
17 This page intentionally blank

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4'
5'
20 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
18 1360 EAST GRAND AVENUE

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6.5'
4'
26 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
19 135 SOUTH HALCYON ROAD

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8 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110 2'
4'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
20 239 ELM STREET (1)

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68 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

7.5'
9'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
21 239 ELM STREET (2)

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14 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110 3'

4.5'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
22 239 ELM STREET (3)

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90 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

7.5'
12'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
23 239 ELM STREET (4)

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4.5'

6.5'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
24 1200 EAST GRAND AVE (1)
29 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

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252 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

4.5'
56'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
25 1200 EAST GRAND AVE (2)

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4.5'

3.5'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
26 1200 EAST GRAND AVE (3)
16 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

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4.5'

3.5'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
27 1200 EAST GRAND AVE (4)
16 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

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12 LF OF SIDEWALK UNDERDRAIN REPLACEMENT PER CITY STANDARD 3420 5'
8'
12'
40 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
28 RANCHO PARKWAY AT PALOS
SECOS

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7'
5'
23'
13'
5'

5.5'
12 LF OF SIDEWALK UNDERDRAIN REPLACEMENT PER CITY STANDARD 3420 40 SF OF SIDEWALK PANEL REPLACEMENT PER CITY STANDARD 4110 13 LF OF CURB AND GUTTER REPLACEMENT PER CITY STANDARD 4030

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
29 JAMES WAY JUST EAST OF
RODEO

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6'
3'

REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
30 388 AVENIDA DE DIAMONTE
6 LF OF SIDEWALK UNDERDRAIN REPLACEMENT PER CITY STANDARD 3420 3 LF OF CURB AND GUTTER REPLACEMENT PER CITY STANDARD 4030

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REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
31 785 VIA BANDELERO
6 LF OF SIDEWALK UNDERDRAIN REPLACEMENT PER CITY STANDARD 3420

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REMOVE AND REPLACE

EXISTING CONCRETE

APPENDICES
32 724 ASILO
6 LF OF SIDEWALK UNDERDRAIN REPLACEMENT PER CITY STANDARD 3420

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ATTACHMENT 5 – BID ADDENDA

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2022 Concrete Repairs Project, PW 2022-07 Addendum No. 1 1 of 2
ADDENDUM NO. 1
Date: July 7, 2023
To: All Plan Holders
From: Paul Henderson
Capital Improvement Project Manager (Interim)
Subject: 2022 Concrete Repairs Project, PW 2022-07
Receipt of this Addendum must be acknowledged by writing “Addendum No. 1” on the outside of the bid envelope.

This addendum forms a part of the Contract Documents and modifies the original plans and/or Special Provisions dated June 13, 2023, as noted herein. This addendum contains the following information:

Add. Item Clarifications / Questions / Answers

1.01 Clarification 01: Basis of Award
a. The Notice to Bidders, Page IV, AWARD section is hereby changed as follows:
i. Change from: The lowest bidder will be determined using the BASE BID. The City may, at its discretion, add one, all, or none of the Add Alternates. ii. Change to: The lowest bidder will be determined using the sum of the BASE BID, ADD ALTERNATE NO. 1 and ADD ALTERNATE NO. 2. The City may, at its discretion, add one, all, or none of the Add Alternates.

1.02 Clarification 02: Timing of Contract Award & Construction of Ramps Near School a. It is the City’s intention to award the contract to the lowest responsible bidder at the 07/25/2023 City Council meeting, to provide the Contractor with the opportunity to complete ramps before school returns on 08/17/2023 (Harloe Elementary)

1.03 Clarification 03: Traffic Control on East Grand
a. The City requires a minimum of 1-way through traffic on East Branch Street throughout construction
b. Parking lanes will be available to the contractor to use for traffic movement, including the outdoor dining parklets, which will be removed by others prior to the Contractor commencing onsite work
c. Prior to commencing onsite work, the Contractor shall submit a plan for construction and traffic management, including sequencing, for the crosswalks. The Contractor shall allow 1 week for the City to review this plan and provide comments. d. The crosswalk work shall be as short of a duration as possible, the City desires a 2-week maximum window for start to completion of the crosswalk work e. When crosswalks are closed for construction the Contractor shall provide a temporary crossings, including ramps that meet ADA requirements

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2022 Concrete Repairs Project, PW 2022-07 Addendum No. 1 2 of 2

1.04 Clarification 04: Surface Mounted Flashing Beacons a. The existing surface mounted flashing beacons (in-roadway lights) shall be salvaged by the Contractor and delivered to the City Corporation Yard.

1.05 Clarification 05: Material for Tree Surrounds
a. Tree wells to be finished with 100% black plastic tree grate, meeting ADA requirements, cut to size, finished flush with adjacent bricks and secured in place. b. Tree grate mounting shall be per the manufacturer specification. c. Example product is the Poly-Grate II manufactured by Structural Plastics Corp, or approved equivalent.
d. Contractor shall submit tree grate manufacturer specification for approval. e. Tree grates payment included in Bid Item 6.

1.06 Clarification 06: Changes to Special Provisions
a. SPECIAL PROVISIONS, DIVISION III EARTHWORK AND LANDSCAPE is hereby changed as provided in Addendum 1, Attachment 1.

1.07 Clarification 07: Tree Removal Clarification
a. No trees are to be removed as part of this project.
b. If the Contractor requires tree trimming for Traffic Control, or other purposes, 10 working days notification shall be provided to the City Project Manager who will coordinate with the City Arborist. The Contractor is not responsible for tree trimming costs.

1.04 Clarification 08: Pre-Bid Meeting Sign In Sheet
a. The Pre-Bid meeting sign in sheet is included as Addendum 1, Attachment 2.

Please contact Paul Henderson at (805) 468-9927, [email protected], if you have any questions.

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2022 Concrete Repairs Project, PW 2022-07 Addendum No. 1 Attachment 1 – Special Provisions Changes

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SPECIAL PROVISIONS
4 Add to Section 15-1.04 Payment
Protection and Replacement of existing city and private facilities shall be included in the price paid for various items of work.

DIVISION III EARTHWORK AND LANDSCAPE
17-2 CLEARING AND GRUBBING
Add to Section 17-2.01 General
Comply with City of Arroyo Grande Municipal Code Chapter 12.16- Community Tree Program.

All tree removal work is to be overseen by an International Society of Arboriculture Certified Arborist following best management practices as established by the International Society of Arboriculture (ISA) and Tree Care Industry Association ANSI A300 standards.

Add to Section 17-2.03A General
Mark all trees to be removed with a dot of red paint on the trunk side facing the street.

City Staff must verify all trees for removal before work.

Submit a Traffic Control Plan for approval by the City Engineer in advance of any work that impacts a travel way.

Notify and coordinate with the utility company for the removal of branches extending through power and/or telephone lines, so removal operations will not be delayed.

Protect sidewalks, curbs, streets, other public and private facilities, housing property, and automobiles from damage.

The Contractor shall locate, protect and preserve all existing landscape irrigation adjacent to the project areas and is responsible for repairing or replacing any existing landscape irrigation damaged during construction activities.

Add to Section 17-2.03B Clearing
Clear trees indicated for removal on the plans.

Replace Section 17-2.03C Grubbing with the following:

Grub all construction areas around trees to be removed to a minimum depth of 12-inches in a 3-foot radius around the existing tree or as necessary to remove all trees, existing stumps, roots, buried logs, root barriers, and other objectionable material. All such items visible on the surface will be removed. Grubbing and tree root grinding is required to a minimum depth of 24-inches within 1.5 feet of the existing tree or as necessary to allow for a new tree to be planted in the exact location as the existing tree. Do not leave any “hump” or mounds in the parkway area adjacent to the tree removal area.

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SPECIAL PROVISIONS
5 Backfill all parkway areas with native topsoil to provide a level surface that is flush with the new and existing facilities.

Replace Section 17-2.03D Disposal of Materials with the following:

Dispose of all objectionable materials resulting from clearing and grubbing activities.

Replace Section 17-2.04 Payment with the following:

Payment for tree removal is paid on a unit cost basis as identified in the Bid Schedule. 19 EARTHWORK
Replace Section 19-2.04 Payment with the following:

Payment for “Grading of Hillside and Removal of Excess Material” is on a lump sum basis.

It includes excavating, grading, and removing all excess materials within the defined project limits. The Contractor is responsible for verifying and adjusting estimated quantities as necessary.
20 LANDSCAPE
Add the following to Section 20-3.01B(2)(b)(ii) Carpobrotus and Delosperma Cuttings
When removing ice plant, use the following to make ice plant plugs to be replanted in jute netting after construction:

Carpobrotus Cuttings - Take tip cuttings from healthy, vigorous Carpobrotus and Delosperma plants that are free of pests and disease.

Carpobrotus cuttings must be 10 inches or more in length and not have roots. Plant ground cover plants 1 foot on center.

DIVISION IV SUBBASES AND BASES
26 AGGREGATE BASES
Replace Section 26-1.04 Aggregate Bases with the following:

Unless specifically called out in the Bid Schedule, measurement and payment for aggregate base shall be made as a part of the types of work in which they are utilized.

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2022 Concrete Repairs Project, PW 2022-07 Addendum No. 1 Attachment 2 – Pre Bid Meeting Sign In Sheet

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2022 Concrete Repairs Project, PW 2022-07 Addendum No. 2 1 of 1
ADDENDUM NO. 2
Date: July 13, 2023
To: All Plan Holders
From: Paul Henderson
Capital Improvement Project Manager (Interim)
Subject: 2022 Concrete Repairs Project, PW 2022-07
Receipt of this Addendum must be acknowledged by writing “Addendum No. 2” on the outside of the bid envelope.

This addendum forms a part of the Contract Documents and modifies the original plans and/or Special Provisions dated June 13, 2023, as noted herein. This addendum contains the following information:

Add. Item Clarifications / Questions / Answers

2.01 Clarification 01: Engineer’s Estimate
a. The Engineer’s Estimate for the Project is $395,000

2.02 Clarification 02: Project Layout
a. Surveying and/or layout is not provided by the City
b. The Contractor is responsible for layout, which will be reviewed by the City Inspector

2.03 Clarification 03: Bid Question Period
a. The City will not respond to Bidder questions received after 5pm 07/13/2023.

Please contact Paul Henderson at (805) 468-9927, [email protected], if you have any questions.

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ATTACHMENT 6 – PLANS

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ATTACHMENT 8

CDBG PROVISIONS

1. Violate or Breach Contract Terms. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final payment, termination of the contract, suspension/debarment or any other action determined to be appropriate by the County.

2. Termination of Agreement for Cause. If Subrecipient (1) fails to perform Subrecipient's duties to the satisfaction of the County, or (2) fails to fulfill in a timely and professional manner Subrecipient's obligations under this Agreement, or (3) violates any of the terms or provisions of this Agreement, then County shall have the right to terminate this Agreement effective immediately upon the County giving written notice to the Subrecipient. Termination shall have no effect upon the rights and obligations of the parties arising out of any transaction occurring prior to the effective date of such termination.

Subrecipient shall be paid for all work satisfactorily completed and accepted by the County prior to the effective date of such termination. If County's termination of Subrecipient for cause is defective for any reason, including but not limited to County's reliance on erroneous facts concerning Subrecipient's performance, or any defect in notice thereof, County's maximum liability, if any, shall not exceed the amount payable to Subrecipient under this Agreement.

3. Termination of Agreement for Convenience. The County may terminate this Agreement at any time by giving the Subrecipient thirty (30) days prior written notice of such termination. Termination shall have no effect upon the rights and obligations of the parties arising out of any transaction occurring prior to the effective date of such termination. Subrecipient shall be paid for all accepted goods and work satisfactorily completed and accepted by County prior to the effective date of the termination.

Termination of this Agreement may be effectuated by the Director of Social Services or his or her designee, without the need for action, approval, or ratification of the Board of Supervisors.

4. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement.

During the performance of this agreement, the Subrecipient agrees as follows:
a. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following:

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b. Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
c. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. d. The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. e. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
f. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. g. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. h. In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated,

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or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. i. The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, that if the applicant so participating is a state or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract,

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loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.

5. Davis—Bacon Act. The Labor Standards Regulations set forth in Section 570.603 of 24 CFR Part 570; and HUD Handbook 1344.1. If this Agreement involves construction or facility improvements exceeding two thousand dollars ($2,000) awarded by the Recipient, the Subrecipient agrees to comply with:
a. Minimum wages.

All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less oteen than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less oteen than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein:

Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

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The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination, and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
i. The work to be performed by the classification requested is not performed by a classification in the wage determination; and
ii. The classification is utilized in the area by the construction industry; and iii. The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. iv. The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. v. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either

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pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
vi. If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. b. Withholding. The Subrecipient shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, the (Agency) may, ateer written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
c. Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereateer for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the DavisBacon Act), daily and weekly number of hours worked, deductions made and actual wages paid.

Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee

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programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs.
i. The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead, the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the (write in name of appropriate federal agency) if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit them to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency), the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, sponsor, or owner). ii. Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
iii. That the payroll for the payroll period contains the information required to be provided under §

5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; iv. That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;

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v. That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.

The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section.

The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the (write the name of the agency) or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, ateer written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
d. Apprentices and trainees.
i. Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any crate classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed.

Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's

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level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

II. Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S.

Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman’s hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

III. Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
e. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract.

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f. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the (write in the name of the Federal agency) may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. g. Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
h. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract.
i. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.
j. Certification of eligibility.
i. By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). ii. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). iii. The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.

6. Prevailing Wages. Subrecipient shall comply with the prevailing wage requirements of the Secretary of Labor in accordance with the Davis-Bacon Act (40 USC 276a to 276 a-7) as supplemented in the Department of Labor regulations (29 CFR Part 5). The Federal minimum wage rates for this project as predetermined by the United States Secretary of Labor are set forth in the Special Provisions. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the prevailing

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wage rates determined to be applicable to this contract by the Director of the California Department of Industrial Relations for similar classifications of labor, the Contractor and subcontractors shall pay not less than the higher wage rate. Pursuant to the provisions of Section 1773 of the California Labor Code, the Board of Supervisors of the County of San Luis Obispo has obtained from the Director of the California Department of Industrial Relations the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work for the locality in which the work is to be performed for each needed crate, classification, or type of workman. Copies of said prevailing rate of per diem wages are on file in the Office of the Clerk of the Board of Supervisors and available at the California Department of Industrial Relations’ web site address at: www.dir.ca.gov/DLSR/PWD. Bidders are advised that any contractor who is awarded a public works project and intends to use a crate or classification not shown on the general prevailing wage determination may be required to pay the wage rate of that crate or classification most closely related to it as shown in the general determinations effective at the time of the call for bids.

These requirements shall apply to all contracts, financed in whole or in part with assistance provided under this Agreement, that exceed two thousand dollars ($2,000) and involve construction, renovation, or repair of any building or work. These requirements shall not apply to contracts the exceed two thousand dollars ($2,000) that involve the rehabilitation of residential property containing less than eight (8) households, or as allowed by the Housing and Community Development Act of 1974, as amended.

Contractors shall also comply with regulations under 29 CFR, Parts 3, 1, 5 and 7 governing the payment of wages for apprentices and trainees to journeymen. However, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph, for such contracts in excess of ten thousand dollars ($10,000).

7. Copeland Anti-Kickback Act. During the performance of this Agreement, the Subrecipient and its contractors and subcontractors agree to comply with the Copeland Anti-Kickback Act 18 U.S.C. § 874,40 U.S.C. § 3145, and the requirements of 29 C.F.R. Part 3 as may be applicable, which are incorporated by reference into this Agreement. This act provides that the Subrecipient, its contractor and subcontractors shall be prohibited from inducing any person employed in the construction, completion, or repair of public facilities to give up any part of the compensation which they are otherwise entitled.

Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses.

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The Subrecipient, its contractor and subcontractors shall maintain documentation that demonstrates compliance with hour and wages requirements of this part. The Subrecipient, its contractor and subcontractors shall include payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Such documentation shall be made available to the Recipient for review upon request. The Subrecipient, its contractor and subcontractors will permit such representatives to interview employees during working hours on the job. The Subrecipient’s contractor and subcontractors agree to include a provision requiring such compliance in its lower tier covered contracts and transactions.

Breach. A breach of the contract clauses above may be grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12.

8. Contract Work Hours and Safety Standards Act. Where applicable, during the performance of this Agreement all contracts awarded by the Subrecipient, the prime contractor and subcontractors in excess of two thousand dollars ($2,000) for construction contracts and in excess of one hundred thousand dollars ($100,000) for contracts that involve the employment of mechanics or laborers, pursuant to the Contract Work Hours and Safety Standards Act, to apply the four clauses below. These clauses shall be inserted in addition to the clauses required by 29 CFR Part 5.5(a) or 29 CFR Part 4.6. As used in this section, the terms laborers and mechanics include watchmen and guards. i. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty (40) hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times (1.5) the basic rate of pay for all hours worked in excess of forty (40) hours in such workweek.
ii. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a.) of this section, the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a.) of this section, in the sum of twenty-nine ($29) dollars for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty (40) hours without payment of the overtime wages required by the clause set forth in paragraph 8(i.) of this section.

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iii. Withholding for unpaid wages and liquidated damages. The Recipient shall upon its own action or upon written request of an authorized representative of the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Labor (DOL) withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (ii.) of this section.
iv. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (i.) through (iv.) of this section and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (i.) through (iv.) of this section.

9. Rights to Inventions. If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2(a) and the County wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement”, the non-Federal entity must comply with the requirements of 37 CFR Part 401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements). The regulation at 37 CFR § 401.2(a) currently defines “funding agreement” as any contract, grant, or cooperative agreement entered into between any Federal agency, other than the Tennessee Valley Authority, and any contractor for the performance of experimental, developmental, or research work funded in whole or in part by the Federal government. This term also includes any assignment, substitution of parties, or subcontract of any type entered into for the performance of experimental, developmental, or research work under a funding agreement as defined in the first sentence of this paragraph.

10. Clean Air Act, Federal Water Pollution Control Act and Environmental Conditions a. Clean Air Act.

The subrecipient, contractor and subcontractors agree to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act, as amended. 42 U.S.C., § 7401, et seq.

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The subrecipient agrees to report each violation to the County and understands and agrees that the County will, in turn, report each violation as required to assure notification to the Federal Emergency Management Agency (FEMA), and the appropriate Environmental Protection Agency Regional Office. b. Federal Water Pollution Control Act
The subrecipient, contractor and all subcontractors agree to comply with all applicable standards, orders, or regulations issued pursuant to the federal Water Pollution Control Act, as amended, 33 U.S.C., § 1251, et seq.

The subrecipient, contractor and subcontractors agree to report each violation to the County and understands and agrees that the County will, in turn, report each violation as required to assure notification to the any pass-through entity, if applicable, Federal Emergency Management Agency (FEMA), and the appropriate Environmental Protection Agency Regional Office. The subrecipient agrees to include these requirements in each subcontract exceeding one hundred fitey thousand dollars ($150,000) financed in whole or in part with federal assistance provided by FEMA. c. Flood Disaster Protection.

In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation).
d. Lead-Based Paint.

The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of leadbased paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under seven (7) years old. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted.
e. Historic Preservation.

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The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fitey (50) years old or older or that are included on a Federal, state, or local historic property list.

11. Debarment and Suspension. -This contract is a covered transaction for the purposes of 2 C.F.R.

Part 180 and 2 C.F.R. Part 3000. As such, the contractor is required to verify that none of the contractor’s principals (defined at 2 C.F.R. § 180.995) or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935).

The contractor must comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, and must include a requirement to comply with these regulations in any lower-tier transaction it enters into.

This certification is a material representation of fact relied upon by the recipient. If it is later determined that the contractor did not comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, in addition to remedies available to the recipient, the federal government may pursue available remedies, including but not limited to suspension and/or debarment.

The bidder or proposer agrees to comply with the requirements of 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

Contracts exceeding $10,000 must include 13-14

12. Mandatory Disclosures. The Subrecipient must disclose, in a timely manner, in writing to the County all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award described in 2 C.F.R. § 200.113. Failure to make required disclosures can result in any of the remedies described in 2 C.F.R. § 200.339 Remedies for noncompliance, including suspension or debarment.

13. Byrd Anti-Lobbying Amendment. Subrecipients, Contractors or Subcontractors who apply or bid for an award of more than $100,000 shall file the required certification. Each tier certifies to the tier above that it will not and has not used federally appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, officer or employee of Congress, or an employee of a Member of Congress in connection with obtaining

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any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award.

Such disclosures are forwarded from tier to tier up to the recipient who in turn will forward the certification(s) to the federal awarding agency.

If applicable, subrecipients, contractors and subcontractors must sign and submit the following certification to the County with each bid or offer exceeding $100,000:

14. Procurement of Recovered Materials. Where the purchase price of the item is greater than $10,000, or the value of the amount of items purchased in the preceding fiscal year was greater than $10,000:

In the performance of this contract, the Contractor shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired— Competitively within a timeframe providing for compliance with the contract performance schedule; Meeting contract performance requirements; or
At a reasonable price. Information about this requirement, along with the list of EPA-designated items, is available at EPA’s Comprehensive Procurement Guidelines webpage:
https://www.epa.gov/smm/comprehensive- procurement-guideline-cpg-program.

The Contractor also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.

15. Prohibition on Contracting for Covered Telecommunications Equipment or Services. a. Definitions. As used in this clause, the terms backhaul; covered foreign country; covered telecommunications equipment or services; interconnection arrangements; roaming; substantial or essential component; and telecommunications equipment or services have the meaning as defined in FEMA Policy 405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services (Interim), as used in this clause—

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b. Prohibitions.
i. Section 889(b) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232, and 2 C.F.R. § 200.216 prohibit the head of an executive agency on or ateer Aug.13, 2020, from obligating or expending grant, cooperative agreement, loan, or loan guarantee funds on certain telecommunications products or from certain entities for national security reasons. ii. Unless an exception in paragraph (c) of this clause applies, the contractor and its subcontractors may not use grant, cooperative agreement, loan, or loan guarantee funds from the Federal Emergency Management Agency to:

1. Procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system;

2. Enter into, extend, or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system;

3. Enter into, extend, or renew contracts with entities that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or

4. Provide, as part of its performance of this contract, subcontract, or other contractual instrument, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.
c. Exceptions.
i. This clause does not prohibit contractors from providing— (i) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

1. Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.

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ii. By necessary implication and regulation, the prohibitions also do not apply to:

1. Covered telecommunications equipment or services that: i. Are not used as a substantial or essential component of any system; and ii. Are not used as critical technology of any system.

2. Other telecommunications equipment or services that are not considered covered telecommunications equipment or services.
d. Reporting requirement.
i. In the event the contractor identifies covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system, during contract performance, or the contractor is notified of such by a subcontractor at any tier or by any other source, the contractor shall report the information in paragraph (d)(2) of this clause to the recipient or subrecipient, unless elsewhere in this contract are established procedures for reporting the information.
ii. The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause:

1. Within one business day from the date of such identification or notification: The contract number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler number); item description; and any readily available information about mitigation actions undertaken or recommended.

2. Within 10 business days of submitting the information in paragraph (d)(2)(i) of this clause: Any further available information about mitigation actions undertaken or recommended. In addition, the contractor shall describe the efforts it undertook to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be incorporated to prevent future use or submission of covered telecommunications equipment or services. d. Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts and other contractual instruments.

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16. Domestic Preference for Procurements. As appropriate, and to the extent consistent with law, the contractor should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. This includes, but is not limited to iron, aluminum, steel, cement, and other manufactured products.

For purposes of this clause: Produced in the United States means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States. Manufactured products mean items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.

17. Executive Order N-6-22 – Russia Sanctions. On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. Should the State or County determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The County shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the County.

18. Access to Records. The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Recipient, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.

19. Women and Minority Owned Businesses. The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women’s business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms “small business” means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women’s business enterprise” means a business at least fitey-one percent (51%) owned and controlled by minority group members or women.

The Subrecipient must take all necessary affirmative steps to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible.

Affirmative steps must include:

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a. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
b. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
c. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; d. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; e. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and f. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in this paragraph (a) through (f) of this section.

20. Inflation Adjustment of Acquisition – related dollar threshold. Appendix II to Part 200-Contract Provisions for Non-Federal Entity Contracts Under Federal Awards:
a Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

21. Bonding Requirements. For construction or facility improvements contracts or subcontracts exceeding the Simplified Acquisition Threshold of two hundred fitey thousand dollars ($250,000) the Recipient may accept the bonding policy and requirements of the Subrecipient provided that the Recipient has made a determination that the CDBG funds are adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
a. Bid Guarantee. At the submission of a bid to the Subrecipient, the contractor shall furnish a “bid” guarantee equivalent to five percent (5%) of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

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b. Performance Bond. At the time of execution of a contract between the Subrecipient and the contractor, the contractor shall furnish a “faithful performance” bond in the sum of one hundred percent (100%) of the contract price to guarantee the performance of the contract. c. Payment Bond. At the time of execution of the contract, the contractor shall furnish a “payment” bond in the sum of one hundred percent (100%) of the contract price to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

22. Section 3. Economic Opportunities for Low- and Very Low-Income Persons (24 CFR Part 75). A project receiving HUD assistance of at least two hundred thousand dollars ($200,000) involving construction, demolition, or rehabilitation is required to comply with Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3 Final Rule). hereinateer referred to as “Section 3”.

The purpose of the Section 3 is to ensure that employment and other economic opportunities generated by the U.S. Department of Housing and Urban Development (HUD) assistance shall, to the greatest extent feasible, be directed to low and very low-income persons within the project area or to Business Concerns located in or owned in substantial part by persons residing within the area of the project (Section 3 Workers and/or Section 3 Business Concerns). Income limits are defined by Section 3(b)(2) of the Housing Act of 1937.
a. Recordkeeping. HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed.

Subrecipients must maintain documentation to ensure that workers meet the definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period. b. The Subrecipient shall insure that all contracts subject to Section 3 include the following:
i. The Parties to this contract agree to comply with the Section 3 provisions set forth in 24 CFR Part

75. The parties to this contract certify that they are under no contractual or other impediments that would prevent them from complying with the Part 75 regulations.

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ii. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
iii. The contractor agrees to include this Section 3 language in every subcontract subject to compliance with regulation in 24 CFR Part 75, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 language, upon a finding that the subcontractor is in violation of the regulation in 24 CFR Part 75 and the associated policies and guidelines. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulation in 24 CFR Part 75. iv. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) ateer the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR Part 135. v. Noncompliance with 24 CFR Part 75 and the associated policies and guidelines may result in sanctions specified by 24 CFR 75, termination of this contract for default, or debarment or suspension from future HUD-assisted contracts.
c. Subcontracts. The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.

23. Employment Restrictions. The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities.

24. Conduct.

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a. Assignability. The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Recipient thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Recipient under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Recipient.
b. Subcontracts
i. Approvals
The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Recipient prior to the execution of such agreement. ii. Monitoring
The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. iii. Content
The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. iv. Selection Process
The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Recipient along with documentation concerning the selection process.

25. Hatch Act. The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.

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Item 9.j.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: June 2023 Monthly Water Supply and Demand Update DATE: July 25, 2023
SUMMARY OF ACTION:

The update reports the City’s total water supply and demand for June 2023. Current Lopez Reservoir level and projected levels are provided in the attachments.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

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

RECOMMENDATION:

Receive and file the Monthly Water Supply and Demand Update.

BACKGROUND:

On March 28, 2023, the City Council adopted a Resolution rescinding the declaration of a Stage 1 Water Shortage Emergency and related water shortage restrictions and penalties.

The City of Arroyo Grande’s water entitlements are calculated on a water year that begins April 1st. The current water supply for water year 2023/2024 includes 2,290 Acre Feet from Lopez Reservoir, 1,323 Acre Feet of groundwater entitlement from the Santa Maria River Groundwater Basin, and 160 Acre Feet from the City’s wells that draw from the Pismo formation.

The predicted water use for 2023/2024 water year is 2,200 Acre Feet.

In June 2023, the City’s water use was 168.1 Acre Feet with a per capita use of 102 gallons per day/per person. The residential per capita use was 78 gallons per day/per person. There was a total of 0.38 inches of rainfall in the City in June 2023.

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Item 9.j.

City Council
June 2023 Monthly Water Supply and Demand Update
July 25, 2023

Page 2 ends

The rainfall total at the City Corporation Yard gauge for the season of 2022/2023 is 30.63 inches.

ANALYSIS OF ISSUES:

The United States Drought Monitor, as of July 12, 2023, shows San Luis Obispo County is not in a drought. Rainfall for the period of July 1, 2022, through June 30, 2023, is 30.63 inches at the Corporation Yard rain gauge. Lopez Lake is at 99.3% as of July 12, 2023.

The 2022/2023 water year ended on March 31, 2023. Lopez Lake began a continuous spill on March 23, 2023, and stopped spilling as of June 21, 2023. As of June 20, 2023, 14,457 Acre Feet had spilled from Lopez Lake.

During a spill, all deliveries are waived and not charged towards contract entitlement.

The deep well index for the third quarter of 2023 was completed on July 6, 2023, and is

11.57 feet above sea level, which is 4.7 feet above the threshold value. The current deep well index is 0.66 feet lower than April 2023, and 6.23 feet higher than July 2022.

ALTERNATIVES:

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

1. Receive and file the report, or

2. Provide other directions to staff.

ADVANTAGES:

The report provides the City Council and the public with the current and projected conditions of our water supply and demand.

DISADVANTAGES:

No disadvantages noted at this time.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Lopez Monthly Operations Report for June 2023

2. Lopez Reservoir Storage Projection

3. Monthly Water Use Comparison

4. Monthly Monitoring Report for June 2023

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Attachment 3
177.3
168.1
107
102
0 20
40 60
80 100
120
140
160
180
200
Jun-22 Jun-23
Monthly Water Use Comparison
Acre Feet Usage (gpcd)

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Thank you for your Monitoring Report. Below is the information you have submitted for the month of June 2023. If this information is incorrect, you can edit the report for the month with the corrected information. We use your most recently submitted monthly report in our calculations.

Reporter Shane Taylor
Report Type Full
Urban Water Supplier(Number) Arroyo Grande City of (608) Public Water System ID(s) CA4010001
Reporting Month 0623
County/Counties San Luis Obispo
County Under Drought Declaration No
Water Shortage Contingency Plan 0
Water Shortage Level 0
Population 17963
Total Potable Water Production 168.1 AF
Commercial Agricultural Water 0 AF
Residential Use Percentage 77 %
CII Water 23.5 AF
Recycled Water 0 AF
Non-revenue Water AF
Estimated R-GPCD 78.27
Qualification
Emergency Response Section Revealed? No
To edit your report click HERE (After logging in, select the report to edit, click on “Edit”, make your corrections, and click on “Submit Report” when finished) State Water Resources Control Board Office of Research, Planning & Performance Attachment 4

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Item 9.k.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Emergency Shelters; Development Code Amendment 23-004
DATE: July 25, 2023
SUMMARY OF ACTION:

Adopting the Ordinance will amend the regulations applicable to emergency shelters.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No financial impact is projected.

RECOMMENDATION:

Adopt the Ordinance amending Sections 16.36.030 and 16.52.091 of the Arroyo Grande Municipal Code regarding Emergency Shelters and find that the Ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines sections 15060, subd. (c)(2), (3); 15061(b)(3)).

BACKGROUND:

The Arroyo Grande Municipal Code (AGMC) currently allows emergency shelters in the Industrial Mixed Use (IMU) and Highway Mixed Use (HMU) zoning districts. Consistent with state law, the AGMC defines an emergency shelter as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.”
Senate Bill 2 (SB 2), which became effective on January 1, 2008, requires the Housing Element of all cities and counties in California to identify a zone or zones where emergency shelters are allowed without a conditional use permit or other discretionary approval. The City’s Housing Element identifies the IMU and HMU zones as districts where emergency shelters are allowed without a discretionary permit. However, AGMC

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Item 9.k.

City Council
Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Emergency Shelters; Development Code Amendment 23-004
July 25, 2023

Page 2 ends

section 16.36.030 currently conflicts with the Housing Element as it provides that emergency shelters are allowed in these areas with a minor use permit (MUP), which is a discretionary permit. This ordinance amendment rectifies this inconsistency.

The ordinance amendment also proposes to allow emergency shelters in the Fair Oaks Mixed Use (FOMU) district without a discretionary permit to provide additional options for the establishment of an emergency shelter in response to the shelter crisis declared by Council in 2018.

The Planning Commission reviewed the draft ordinance at its meeting on June 6, 2023 (Attachment 2). The Commission was supportive of the ordinance as proposed and recommended that Council adopt the ordinance as drafted. The City Council then introduced the ordinance amendments at its meeting on June 27, 2023 (Attachment 3).

ANALYSIS OF ISSUES:

The ordinance amendments are now ready for adoption. The ordinance amendments will become effective thirty (30) days after adoption.

ALTERNATIVES:

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

1. Adopt the ordinance amendments as proposed; or

2. Modify the ordinance amendments and direct staff to return at a future public hearing to introduce the modified amendments; or

3. Provide other direction to staff.

ADVANTAGES:

The ordinance will make the AGMC consistent with its Housing Element, and therefore, in compliance with State law. Allowing emergency shelters in the FOMU zone provides additional opportunities for the establishment of a shelter and improve the shelter crisis.

DISADVANTAGES:

Allowing shelters in the FOMU zone potentially eliminates parcels that could otherwise be developed with permanent housing and commercial uses in a mixed-use district.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the ordinance does not qualify as a “project” under CEQA and because the ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA Guidelines defines a project as the whole of an action, which could potentially result in either a direct physical change, or reasonably foreseeable indirect physical change, in the environment. Here, the

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Item 9.k.

City Council
Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Emergency Shelters; Development Code Amendment 23-004
July 25, 2023

Page 3 ends

ordinance will not result in any construction or development, and it will not have any other effect that would physically change the environment. The ordinance therefore does not qualify as a project subject to CEQA.

In the alternative, even if the ordinance did qualify as a “project” under CEQA, it would be exempt from CEQA under State CEQA Guidelines section 15061(b)(3), which exempts projects from CEQA “[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Thus, even if the ordinance could result in some physical change in the environment, the ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment.

PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Proposed Ordinance

2. Staff Report and Minutes from the June 6, 2023, Planning Commission Meeting

3. Staff Report from the June 27, 2023, City Council Meeting

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65501.00002\41296594.1
ATTACHMENT 1
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING SECTIONS 16.36.030 AND

16.52.091 OF THE ARROYO GRANDE MUNICIPAL CODE

REGARDING EMERGENCY SHELTERS AND FINDING

THE ORDINANCE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, on May 5, 2021, the California Department of Housing and Community Development certified the City’s sixth cycle (2020-2028) housing element; and WHEREAS, the housing element profiles the City’s compliance with various state housing laws, including Senate Bill 2; and
WHEREAS, among other things, SB 2 requires cities’ housing elements to identify a zone or zones where emergency shelters are permitted without discretionary review; and WHEREAS, the City’s housing element states that emergency shelters are permitted without discretionary review in the Industrial Mixed Use (“IMU”) and Highway Mixed Use (“HMU”) zoning districts; and
WHEREAS, with respect to emergency shelters, portions of the City’s zoning code are internally inconsistent and conflict with the housing element; and WHEREAS, AGMC section 16.52.091 states that emergency shelters are permitted without discretionary review in the IMU and HMU zones; section 16.36.030 provides that emergency shelters in these zones require a minor use permit (a discretionary approval); and
WHEREAS, this ordinance amends section 16.36.030 to specify that emergency shelters are permitted in the IMU and HMU zones without discretionary review. So amending this section will ensure it no longer conflicts with the housing element and section 16.52.091; and
WHEREAS, the City Council recognizes that emergency shelters provide critical shelter and support to unhoused individuals. For these reasons, this ordinance also amends sections 16.36.030 and 16.52.091 to specify that emergency shelters are permitted without discretionary review in the Fair Oaks Mixed Use (“FOMU”) zone; and WHEREAS, on June 6, 2023, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the ordinance. Following the public hearing, the Planning Commission voted to forward the ordinance to the City Council with a recommendation in favor of its adoption; and

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ORDINANCE NO.

PAGE 2
-2-
WHEREAS, on June 27, 2023, the City Council conducted a duly noticed public hearing to consider the ordinance, including: (1) the public testimony and agenda reports prepared in connection with the ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on June 27, 2023 introduced this Ordinance to amend Sections 16.36.030 and

16.52.091 of Title 16 of the Arroyo Grande Municipal Code; and WHEREAS, all legal prerequisites to the adoption of the ordinance have occurred.

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

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

SECTION 2. Environmental. The City Council finds that this ordinance is exempt from the California Environmental Quality Act ("CEQA") because the ordinance does not qualify as a “project” under CEQA and because the ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA Guidelines defines a project as the whole of an action, which could potentially result in either a direct physical change, or reasonably foreseeable indirect physical change, in the environment.

Here, the ordinance will not result in any construction or development, and it will not have any other effect that would physically change the environment. The ordinance therefore does not qualify as a project subject to CEQA.

In the alternative, even if the Ordinance did qualify as a “project” under CEQA, it would be exempt from CEQA under State CEQA Guidelines section 15061(b)(3), which exempts projects from CEQA “[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Thus, even if the ordinance could result in some physical change in the environment, the ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.

SECTION 3. Required Findings. In accordance with section 16.16.040(E) of the Arroyo Grande Municipal Code, the City Council hereby makes the following findings:

1. General Plan. The ordinance’s amendments to the AGMC are consistent with the general plan and necessary and desirable to implement the provisions thereof.

Specifically, housing element policy J.2 provides that the City shall allow emergency shelters in appropriate zoning districts in accordance with state law. This ordinance effectuates and implements policy J.2 by: (1) aligning the AGMC with the requirements of SB 2; and (2) expanding the areas where emergency shelters are permitted by allowing

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ORDINANCE NO.

PAGE 3
-3-
this use in the FOMU zone. The ordinance is also consistent with, and implements, the general plan because it ensures that the AGMC does not conflict with the housing element’s provisions regarding emergency shelters in the IMU and HMU zones. For these reasons, the ordinance’s amendments to the AGMC are consistent with the general plan and necessary and desirable to implement the provisions thereof.

2. Health, Safety, and Welfare; Illogical Land Use Pattern. Adoption of the ordinance will not adversely affect the public health, safety, and welfare as it simply updates the AGMC to remove an internal inconsistency, comply with state law (i.e., SB 2), and ensure that the AGMC is consistent with the City’s housing element. Furthermore, given that emergency shelters provide a safe alternative to sleeping outdoors, permitting emergency shelters in the FOMU zone will augment the public health, safety, and welfare by providing additional opportunities in the City for this use. Finally, this ordinance will not result in an illogical land use pattern as it is not amending the City’s zoning map.

3. Consistency with Title 16. This ordinance is consistent with the purpose and intent of AGMC Title 16 because it removes an internal inconsistency therein and ensures that the provisions thereof are consistent with the City’s housing element.

4. Environmental. See Section 2 above.

SECTION 4. Code Amendment. The entry for “emergency shelters” in Table

16.36.030(A) of section 16.36.030 of the Arroyo Grande Municipal Code is hereby amended to read as follows (additions shown in underline and deletions shown in strikethrough):

Allowed Land
Uses and Permit
Requirements—

LAND USE

IMU TMU
D-2.11
VCD
HCO
D-2.4
VMU
D-2.11
HCO
D-2.4
GMU FOMU HMU OMU 1
D-2.20
RC 2 Specific Use
Standards
and other
references
…
Emergency
Shelters

MUP P NP NP NP NP NP P MUP
P
NP NP 16.52.091
…
SECTION 5. Code Amendment. Subsection (A) of section 16.52.091 of the Arroyo Grande Municipal Code is hereby amended to read as follows (additions shown in underline and deletions shown in strikethrough):

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ORDINANCE NO.

PAGE 4
-4-
“16.52.091 – Emergency Shelters”
A. Purpose and Intent. It is the purpose of this section to facilitate and encourage the provision of emergency shelters for homeless persons and households by allowing permanent year-round emergency shelters without a conditional use permit or other discretionary action in the industrial mixed use (IMU), and highway mixed use (HMU), and the fair oaks mixed use (FOMU) zoning districts, subject only to the same development standards that apply to other permitted uses in these zones, except for the following requirements unique to emergency shelters, as authorized by Government Code Section 65583(a)(4).

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

SECTION 7. Effective Date. This ordinance shall become effective 30 days after adoption.

SECTION 8. Severability. Should any provision of this ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this ordinance or the application of this ordinance to any other person or circumstance, and, to that end, the provisions hereof are severable.

The City Council declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this ordinance are declared invalid.

SECTION 9. Records. The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at 300 E. Branch Street, Arroyo Grande, CA 93420. The City Clerk is the custodian of the record of proceedings.

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

AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this ____ day of _______, 2023.

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ORDINANCE NO.

PAGE 5
-5-
___________________________________

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

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ATTACHMENT 2
Staff Report and Minutes from the June 6, 2023, Planning Commission meeting are available as links:

Staff Report: Emergency Shelter Ordinance Amendments Recommendation Hearing Minutes: Minutes from the June 6, 2023 PC Meeting

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ATTACHMENT 3
Staff Report from the June 27, 2023, City Council meeting is available as a link:

Staff Report: Emergency Shelter Ordinance Amendments Introduction Hearing

Page 273 of 1114 ends

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information
Agenda Item 9.k. – July 25, 2023 City Council Meeting
Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Emergency Shelters; Development Code Amendment 23-004
DATE: July 25, 2023
Attached is correspondence received for the above reference item. cc: City Manager
Assistant City Manager
Community Development Director
City Attorney
City Clerk
City Website and Public Review Binder
Enc

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From: Patti O'Keefe < >
Sent: Monday, July 24, 2023 2:39:22 PM
To: Caren Ray Russom <[email protected]>; Kristen Barneich <[email protected]>; Lan George <[email protected]>; Jim Guthrie <[email protected]>; Kate Secrest <[email protected]> Subject: Emergency Shelters Re-Zoning 10.c June 27, 2023

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Item 9.l.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Consideration of Lease Renewal for Portion of Car Corral Public Parking Lot Located Between 103 and 109 E. Branch Street for an Additional Five-Year Term from August 1, 2023 to July 31, 2028 DATE: July 25, 2023
SUMMARY OF ACTION:

Approval of the Lease Agreement ("Lease") will allow for access and use of the Car Corral parking lot for public parking.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The lease provides that the City pay rent for the full lease term of $60 ($1 per month for 60 months) upon acceptance, pay all applicable property taxes, and hold the owners harmless from any claims during the 5-year term. The City will be responsible for parking lot repairs and maintenance during this time. Eventual asphalt repairs and restriping will cost an estimated $65,000 to $75,000 and the in-house staff annual cleanup of parking area, tree trimming, and storm water drain cleaning is approximately 8 to 16 hours annually.

RECOMMENDATION:

Approve and authorize the Mayor to execute the Agreement of Lease ("lease") with Kevin Delaney on behalf of the City; and authorize the City Manager to make any such minor changes necessary to further the intent of the parties, subject to the approval of the City Attorney.

BACKGROUND:

The City owns most of the public parking lot to the northeast of the East Branch Street and Nevada Street intersection, known as the Car Corral. However, a portion of the parking lot containing nine (9) parking spaces adjoining 101 and 103 East Branch Street, the Village Grill and the adjacent commercial suite, is privately owned and is leased to the City for $1 per month for use as public parking. The previous owners of the property,

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Item 9.l.

City Council
Consideration of Lease Renewal for Portion of Car Corral Public Parking Lot Located Between 103 and 109 E. Branch Street for an Additional Five-Year Term from August 1, 2023 to July 31, 2028
July 25, 2023

Page 2 ends

the Pfarr Family Trust, sold the property to Kevin Delaney in 2022. The current five-year term expires on July 31, 2023. The City Council approved a lease renewal for another five-year term at its June 12, 2018 City Council meeting.

ANALYSIS OF ISSUES:

The Village Downtown core and a portion of the Village Mixed Use Districts between Traffic Way, Le Point Street, Crown Hill and Arroyo Grande Creek are served by a combination of on-street parking and public off-street parking lots, both owned and leased by the City. The City owns most of Olohan Alley, the Car Corral and the Le Point Street lot behind the Council Chambers and leases the private properties that make up the remainder of the Car Corral.

The current and proposed lease have five-year terms with no cancellation unless agreed to by both parties. Under the terms of the lease, the City is responsible for maintenance and operation of the lots and payment of property taxes, liability insurance, and holds harmless the owners from all claims during that five-year period.

ALTERNATIVES:

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

1. Approve the lease and authorize the Mayor to execute it on behalf of the City and authorizing the City Manager to make any such minor changes necessary to further the intent of the parties, subject to the approval of the City Attorney;

2. Direct staff to modify the lease;

3. Reject the lease, which would result in the nine (9) parking spaces located on private property being unavailable for public parking; or

4. Provide other direction to staff.

ADVANTAGES:

The lease enables the City to continue to provide these parking spaces for public use.

DISADVANTAGES:

The City is responsible for maintenance costs incurred over the next five years.

ENVIRONMENTAL REVIEW:

Approval of the lease 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.

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Item 9.l.

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Attachments:

1. Proposed 5-Year Lease

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ATTACHMENT 1

AGREEMENT OF
LEASE
THIS AGREEMENT OF LEASE, made and entered into this ___ day of July 2023, by and between Kevin Delaney (“Owner”), and the City of Arroyo Grande (“Tenant”), that certain real property in the City of Arroyo Grande, San Luis Obispo County, California, more particularly described in Exhibit "A", a copy of which is attached hereto and incorporated by reference.

Lease: Owner hereby leases to Tenant that certain real property in the City of Arroyo Grande, San Luis Obispo County, California, more particularly described in Exhibit "A" a copy of which is attached hereto and made a part hereof by reference.

Term: The term of this lease shall be for a period of five (5) years, beginning on the first day of August 2023 and ending on the last day of July 2028.

Rent: Rent for the term of the lease is Sixty Dollars ($60.00) over five years, being the sum of One Dollar ($1.00) per month, for each and every month of the term hereof, to be paid in advance upon the signing of this lease by the parties hereto.

Taxes: Not less than thirty (30) days before delinquency, Tenant shall pay all City and County real property taxes assessed on the leased premises during the term of this lease, or any extension thereof. The taxes shall be prorated as applicable for the taxing fiscal year for any portion of the term. The leased premises are presently assessed on the county tax records as a separate parcel and taxed as a separate parcel. All parties to this agreement mutually agree to use their best efforts to have the County continue to tax the property in the same manner. -
Owners shall cooperate with Tenant in promptly delivering to Tenant all tax bills received covering the leased property.

Termination Prior to July 31, 2028: If both Owner and Tenant agree in writing, this lease may be terminated prior to July 31, 2028. Tenant may terminate this lease at any time with 30 days prior notice.

Hold Harmless and Insurance: Owner and Tenant each hereby agree to indemnify, defend, save, and hold the other and their respective officers, agents, and employees, free and harmless from and against any claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries arising out of, pertaining to, or in any manner connected with the indemnifying party’s performance of this Agreement, or any act or omission of such indemnifying party, performed in connection with this Agreement.

Tenant shall keep said leased property insured for liability under its municipal blanket insurance policy, which policy shall specifically name the parties hereto.

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ATTACHMENT 1
Notices: All notices to be given to Owner or to Tenant shall be given by personal delivery, or registered mail (return receipt requested) deposited in the United States post office in the City of Arroyo Grande, postage prepaid. The addresses to be used for the parties to this agreement are:

Tenant: City Of Arroyo Grande
300 East Branch Street
Arroyo Grande CA 93420
Owner: Kevin Delaney
101 E. Branch Street
Arroyo Grande, CA 93420
Personal delivery to Owner may be made by personal delivery to Kevin Delaney.

Personal delivery to Tenant may be made by personal delivery to the City Manager, or the Director of Legislative and Information Services /City Clerk.

Change of address may be made in writing, delivered to Owner or to Tenant as herein provided.

Sublease: Tenant may not assign, transfer in whole or in part, or sublet any portion of the leased premises without the prior written consent of Owner.

Parking Meters: No parking meters shall be permitted on the leased premises without the prior written consent of Owner.

Waste, Alterations, Additions: Tenant shall not commit or suffer to be committed any waste of the said premises or permit any public or private nuisance. Tenant shall not make or suffer to be made any alterations to the leased premises without the prior written consent of Owner. Any additions or alterations, which may be permitted on the leased premises, shall become a part of said premises. Tenant shall keep all trees, bushes and shrubs on the property trimmed to allow water in adjacent gutters and drains to flow freely as well as to prevent impacts to the building foundation. Tenant shall place the under-sidewalk drain at the southwesterly corner of the leased premises on a regular annual maintenance schedule to be cleaned out not less than three (3) times a year. Tenant shall modify the drain line in the planter area at the southwesterly corner of the leased premises to drain to the center of the planter and shall trim the bottle brush tree located inside the planter so that it does not overhang the drainage facility adjacent to the building. Additionally, Tenant shall keep all trees, bushes and shrubs on the property trimmed to a height not to exceed one (1) foot below the top of the parapet of the portion of the building situated at 101-103 East Branch Street.

Use of Premises: The premises are being leased for the sole purpose of use for off street public parking, and Tenant shall not permit the premises to be used for any other purpose without the prior written consent of Owner.

Repairs and Maintenance: Tenant shall, at Tenant's sole cost and expense, keep the premises in good condition and repair at all times during the term of this lease.

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ATTACHMENT 1
OWNER:
_______________________________

KEVIN DELANEY
TENANT:
_______________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
_______________________________

JESSICA MATSON, CITY CLERK
AS TO CONTENT:
_______________________________

ISAAC ROSEN, CITY ATTORNEY

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ATTACHMENT 1
EXHIBIT "A"
That certain real property in the City of Arroyo Grande, County of San Luis Obispo, State of California, described as follows:

That certain portion of the "Hotel Lot" of the Buena Vista Tract in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to map filed for record October 2, 1885. In Book A, Page 58 of Maps in the Office of the County Recorder of said County beginning at the most southerly corner of said Hotel Lot and running thence north 57º 15' east, 97.90 feet along the southeasterly line of said lot to the true point of beginning; thence north 32° 43' 37" west, 75 feet; thence south 57° 15' west and parallel with the southeasterly line of said lot, 97. 90 feet to the southwesterly line of said Hotel Lot; thence south 32° 43' 37" east (record south 32° 45' east) along the southwesterly line of said lot, a distance of 20 feet; thence north 57° 15' east along the line parallel with the southeasterly line of said lot, a distance of 55.90 feet to a point; thence south 32° 43' 37" east along a line parallel with a southwesterly line of said lot 55 feet to the southeasterly line of said lot; thence north 57° 15' east 42 feet along the southeasterly line of said lot to the true point of beginning.

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Item 9.m.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Consider Approval of Allocation from the Affordable Housing Trust Fund to Support the Affordable Housing Project at 700 Oak Park Blvd DATE: July 25, 2023
SUMMARY OF ACTION:

City Council’s authorization of Affordable Housing Trust Funds in a not-too-exceed amount of $448,370.37 will allow the City Manager, in consultation with the City Attorney and Community Development Director, to execute a regulatory agreement with grant conditions between the City and the Housing Authority of San Luis Obispo (HASLO) establishing the terms of the contribution from the City’s Affordable Housing Trust Fund to support the development of HASLO’s affordable housing project consisting of 63 affordable multi-family units located at 700 Oak Park Blvd.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The proposed action will authorize a contribution in a not-too-exceed amount of $448,370.37 from the City’s Affordable Housing Trust Fund to cover costs associated with the building permit, including plan review and inspections, development impact fees, utility connections, and State mandated fees for the project.

The current balance of the City’s Affordable Housing Trust Fund is approximately $1.1 million. The proposed action includes a budget adjustment request that will allocate $448,370.37 from the Affordable Housing Trust Fund and apply it to the accounts for building permit plan review, inspections, development impact fees, and utilities.

RECOMMENDATION:

Adopt a Resolution: 1) authorizing a budget adjustment request in a not-to-exceed amount of $448,370.37 from the Affordable Housing Trust Fund; 2) authorize the City Manager, in consultation with the City Attorney and Community Development Director, to execute a regulatory agreement with grant conditions between the City and the Housing Authority of San Luis Obispo (HASLO) establishing the terms of the contribution from the

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Item 9.m.

City Council
Consider Approval of Allocation from the Affordable Housing Trust Fund to Support the Affordable Housing Project at 700 Oak Park Blvd July 25, 2023

Page 2 ends

City’s Affordable Housing Trust Fund to HASLO’s affordable housing project located at 700 Oak Park Blvd in that not-to-exceed amount of $448,370.37.

BACKGROUND:

On May 18, 2021, the Planning Commission approved an application from the Housing Authority of San Luis Obispo (HASLO) for a Conditional Use Permit 21-001 for a mixeduse development consisting of 63 multi-family residential units, a 1,342 square-foot community room, and 1,178 square feet of commercial space (Attachment 1). All of the units would be managed by HASLO and reserved for lower income households in perpetuity. The project also includes outdoor recreational space with a barbeque area and children’s playground near the remaining grove of oak trees near the eastern portion of the project site for the residents of the development. The 63 dwelling units are proposed in three (3) separate, three-story buildings. Two (2) of the buildings would be located along the El Camino Real frontage and one (1) along the Chilton Street frontage.

Construction documents have been submitted and are currently in the review process.

During the plan review process, HASLO submitted a request for a contribution from the City’s Affordable Housing Trust Fund to assist with construction costs.

Arroyo Grande Municipal Code (AGMC) Section 16.80 implements the City’s Inclusionary Housing Ordinance and establishes the regulations and administration of the Affordable Housing Trust Fund. Affordable housing requirements apply to residential projects proposing two or more housing units, not including the projects consisting of a singlefamily residence and an accessory dwelling unit. Projects subject to the inclusionary housing ordinance have the option of reserving a percentage of the proposed units for lower income households or paying the affordable housing in-lieu fee. The in-lieu fee is equal to five percent (5%) of the construction valuation. All affordable housing in-lieu fees are deposited into the Affordable Housing Trust Fund – Fund 232 for Budgetary purposes.

The Municipal Code states the purpose of the Affordable Housing Fund is “solely to increase the supply of affordable housing units. Funds in the affordable housing trust fund may be used to better facilitate the improvement of the city's affordable housing stock as well as the provision of new affordable units.”
ANALYSIS OF ISSUES:

Permit Fees
Following approval of the CUP for this Project, remaining permit fees cover the cost of plan reviews, inspections, utility connections, development impact fees, and State mandated fees. A breakdown of these fees for this project is provided in Table 1.

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Item 9.m.

City Council
Consider Approval of Allocation from the Affordable Housing Trust Fund to Support the Affordable Housing Project at 700 Oak Park Blvd July 25, 2023

Page 3 ends

Table 1: Breakdown of Permit Costs
Plan Review $33,620.92
Inspection $39,744.22
Utilities $261,070
Development Impact Fees $110,927.23
State Mandated Fees $3,008
Total $448,370.37
Due to rising interest rates and inflationary increases that have occurred since the project was approved in 2021, HASLO is facing a funding gap of approximately $1 million to construct this project. The request from the Affordable Housing Trust Fund would cover the cost of the permit fees identified in Table 1 to allow construction of the project. These fees are applicable to all mixed-use projects. Plan reviews fee cover the costs associated with staff review of the construction documents to ensure compliance with the Building Code. Similarly, the inspection fees cover the costs for the periodic inspections during construction to verify the structures are being built according to the approved plans. Utility fees pay for the infrastructure and the physical connection to City water and sewer utilities.

Development impact fees are collected to mitigate the impacts of the project on public safety, transportation facilities, parks, and community facilities. Each building permit also includes fees that contribute to State programs for sustainability and seismic research.

HASLO will also be applying for Low Income Housing Tax Credit funding from the State for this project. The tax credit funding is highly competitive and projects that are able to secure and leverage the most local funding tend to be awarded State funding.

Process
HASLO submitted a letter formally requesting a contribution from the Affordable Housing Trust Fund to cover fees imposed by the City and State to begin construction on this project (Attachment 2). These include the plan review and inspection costs, development impact fees, utilities, and State mandated fees. A contribution from the Affordable Housing Trust Fund will not only directly benefit the project by reducing the financial burden to construct the project, it may also prove to be critical to secure additional State funding.

The Community Development Director is responsible for the general administration of the Affordable Housing Fund, and pursuant to the regulations adopted by City Council.

Formal procedures and policies for the disbursement of funds from the Affordable Housing Trust Fund have not been established, so for the purposes of this project, staff is requesting that Council approve a contribution of $448,370.37 from the Affordable Housing Trust Fund to HASLO to construct the project approved for 700 Oak Park Blvd.

If authorized by the City Council, a regulatory agreement establishing the terms and conditions of the contribution will be executed to ensure the funding is used to increase the supply of affordable housing units, that the housing units remain affordable and to

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Item 9.m.

City Council
Consider Approval of Allocation from the Affordable Housing Trust Fund to Support the Affordable Housing Project at 700 Oak Park Blvd July 25, 2023

Page 4 ends

ensure the City has sufficient grant conditions to ensure consistency with any applicable authorities.

ALTERNATIVES:

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

1. Adopt a Resolution authorizing a budget adjustment request in a not-too-exceed amount of $448,370.37 from the Affordable Housing Trust Fund AND authorize the City Manager, in consultation with the City Attorney and Community Development Director, to execute a regulatory agreement with grant conditions between the City and the Housing Authority of San Luis Obispo (HASLO) establishing the terms of the contribution from the City’s Affordable Housing Trust Fund to HASLO’s affordable housing project located at 700 Oak Park Blvd in that not-too-exceed amount of $448,370.37;

2. Modify and adopt the Resolution authorizing the disbursement; or

3. Provide other direction to staff.

ADVANTAGES:

An allocation from the Affordable Housing Trust Fund will support the construction of a 63-unit housing development for lower income households.

DISADVANTAGES:

The allocation of funding to this project will reduce of the balance of the Affordable Housing Trust Fund, making those funds unavailable to other projects. However, the City has only received one other request from this fund, and staff is unaware of any other projects that are eligible to receive an allocation from this fund.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), the disbursement of funds from the Affordable Housing Fund does not qualify as a “project” under CEQA because the action will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA Guidelines defines a project as the whole of an action, which could potentially result in either a direct physical change, or reasonably foreseeable indirect physical change, in the environment. Here, the action of disbursing the funding will not result in any construction or development, and it will not have any other effect that would physically change the environment. The action therefore does not qualify as a project subject to CEQA. The project itself was granted a categorical exemption when it was approved in 2021. This disbursement of funds will not affect this prior determination.

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.

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Item 9.m.

City Council
Consider Approval of Allocation from the Affordable Housing Trust Fund to Support the Affordable Housing Project at 700 Oak Park Blvd July 25, 2023

Page 5 ends

Attachments:

1. Proposed Resolution

2. HASLO Letter

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING A BUDGET

ADJUSTMENT FROM THE AFFORDABLE HOUSING

TRUST FUND AND AUTHORIZING THE CITY MANAGER

TO EXECUTE A REGULATORY AGREEMENT WITH THE

HOUSING AUTHORITY OF SAN LUIS OBISPO
WHEREAS, the Planning Commission of the City of Arroyo Grande approved application Lot Merger 21-001 and Conditional Use Permit 21-001 to merge four parcels and construct sixty-three (63) multi-family residential units that will be affordable for low income households;
WHEREAS, Planning Commission Resolution 21-2345 contains a condition of approval requiring the developer to record a regulatory agreement against the property ensuring that the units will remain affordable for at least 55 years from the date of occupancy; and WHEREAS, the Affordable Housing Trust Fund is administered under the general supervision of the Community Development Director and pursuant to the regulations established by City Council, as established by Arroyo Grande Municipal Code Section

16.80.080; and
WHEREAS, on July 18, 2023, the developer submitted a letter requesting a contribution from the City’s Affordable Housing Trust Fund to aid in the costs in constructing the project; and
NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes a budget adjustment in a not-to-exceed amount of $448,370.37 from the Affordable Housing Trust Fund and authorizing the City Manager, in consultation with the City Attorney and Community Development Director, to execute a regulatory agreement with grant conditions between the City and the Housing Authority of San Luis Obispo (HASLO) establishing the terms of the contribution from the City’s Affordable Housing Trust Fund to HASLO’s affordable housing project located at 700 Oak Park Blvd in that not-to-exceed amount of $448,370.37.

On motion by 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 25th day of July, 2023.

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RESOLUTION NO.

PAGE 2
___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________

ISAAC ROSEN, CITY ATTORNEY

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ATTACHMENT 2

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Item 9.n.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Shayna Gropen, Assistant Planner
SUBJECT: Consideration of Temporary Use Permit 23-006; Authorizing Closure of City Streets and Use of City Property for the 84th Annual Arroyo Grande Valley Harvest Festival, Friday and Saturday, September 29- 30, 2023; Applicant – Jim Guthrie
DATE: July 25, 2023
SUMMARY OF ACTION:

Approval of the permit will authorize the use of City property and closure of City streets for the annual Arroyo Grande Valley Harvest Festival (Harvest Festival or Festival) on September 29 and 30, 2023.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Application fees for this event are recommended to be waived pursuant to Resolution 3760 (Attachment 4), which established policies to waive permit application fees for certain annual temporary events meeting the following criteria:
 The applicant is a local non-profit organization;
 The group/organization donates at least 50% of its budget to support programs/activities within the City of Arroyo Grande or the Five Cities Area;  Proceeds from the event or activity will be used for a specific City of Arroyo Grande or Five Cities area public project, program, or cause;
 The event or activity is organized and operated by non-paid volunteers; and  The event or activity is open to the public.

The temporary use permit fee being waived is $302. Historically, fees and costs for this event have been waived because the City has served as co-sponsor of the event. The staff hours needed for the event are as follows:

1. 94 Police Department overtime hours;

2. 72 Public Works overtime hours;

3. 7 Community Development regular hours; and

4. 35 Recreation Department regular hours

5. 4 Five Cities Fire Authority overtime hours;

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Item 9.n.

City Council
Consideration of Temporary Use Permit 23-006; Authorizing Closure of City Streets and Use of City Property for the 84th Annual Arroyo Grande Valley Harvest Festival, Friday and Saturday, September 29-30, 2023; Applicant – Jim Guthrie July 25, 2023

Page 2 ends

The cost for this staff time is estimated to total approximately $8,000 and is included in the City’s operating budget.

RECOMMENDATION:

Adopt a Resolution approving Temporary Use Permit 23-006, authorizing closure of City streets and use of City property for the 84
th annual Arroyo Grande Valley Harvest Festival
and authorizing a fee waiver of $302.

BACKGROUND:

Arroyo Grande’s first Harvest Festival took place in 1937 as a two-day celebration organized by the Woman’s Club. The Festival was hosted by a local elementary school and featured food, craft booths, and entertainment for the community. The event was held in the classrooms and a children’s pet parade also took place on Saturday. The Woman’s Club ran the Festival for a number of years, until community supporters were asked to take over organization efforts in 1946. The event has operated annually ever since, with the exception of 2020 and 2021 when the Festival was cancelled due to COVID-19 pandemic. Event coordinators request similar accommodations for the event this year.

ANALYSIS OF ISSUES:

The 84
th Annual Arroyo Grande Valley Harvest Festival is scheduled for Friday, September 29, 2023, from 4:00 pm until 8:00 pm, and Saturday September 30, 2023, from 10:00 am until 4:00 pm. Setup will begin on Thursday, September 28, 2023, at 5:00 pm and cleanup will end early Sunday morning, October 1, 2023. Activities at the Festival will include entertainment, food, games and craft booths, contests, and a parade. The Harvest Festival proposes to include alcohol sales in a contained section of Olohan Alley on Friday and Saturday, September 29 and 30, 2023. A form of identification to be determined by the Police Department, such as wristbands, will be used to identify participants that are 21+ years of age, and no alcohol will be permitted beyond this demarcated section of Olohan Alley.

Festival Areas
 Heritage Square Park;
 Short Street from Nelson Street to the Swinging Bridge and from East Branch Street to Centennial Park;
 Nelson Street from Mason Street to Bridge Street;
 Bridge Street from the Lucia Mar Unified School District parking lot to Branch Street;
 Olohan Alley from Bridge Street to Mason Street; and
 City Hall parking lot at 300 East Branch Street.

The area devoted to the Festival remains unchanged from previous years, with the exception of Kiwanis Park. Kiwanis Park is not to be considered a part of the festival area

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Item 9.n.

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due to damage the park sustained during recent storm events. Kiwanis Park has previously only been utilized as additional seating and has not been included as a staging or booth area in previous years. A map depicting the areas of the City utilized for the festival is included as Attachment 2.

Parade
The parade route will run from the intersection of West Branch Street and Traffic Way, travel east through the Village center, turn south on South Mason Street, and end at Poole Street, with parade dispersal to occur on South Mason Street between Poole and Allen Streets.

The parade staging areas will include:
 West Branch Street from the Shell Station to Rodeo Drive;  Old Ranch Road from West Branch Street to the east end of the five-acre Cityowned dirt lot at the northeast corner of the intersection of Old Ranch Road and West Branch Street, including use of the lot; and
 West Branch Street between Old Ranch Road and the South County Regional Center
Road closures needed for the parade route, staging areas and detour routes include:
 West Branch Street from Rodeo Drive to East Branch Street;  Wesley Street between Larchmont and West Branch Street;  East Branch Street from Traffic Way to Mason Street;
 South Mason Street from East Branch Street to Poole Street;  Old Ranch Road from West Branch Street to the end of the City owned property;  North Mason from Le Point Street to East Branch Street;  Bridge Street from Branch Street to Traffic Way; and
 Nelson Street from Mason to Traffic Way.

The road closures are requested from 8:00 am until noon on Saturday, September 30, 2023, with no-parking enforcement beginning at 8:00 am, with the exception of the staging area. The staging area is requested to close at 8:00 am, with no-parking enforcement beginning at 7:00 am. The detour route around the City via East Cherry Avenue, West Branch Street and Huasna Road remains unchanged from previous years. The City will begin arranging road closures at 6:00 am on Saturday, September 30, beginning with the lower volume roadways and intersections.

Attachment 3 depicts the location of proposed road closures and detour routes associated with the parade. This map will be widely distributed in advance of the event, including direct mailings to Village businesses and surrounding neighborhoods along the parade route.

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Item 9.n.

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The 2011 Harvest Festival Parade introduced an additional detour route by opening the gate at the top of Miller Way, between Miller Way and Emerald Bay Drive. This detour was established for use by affected residents of the Miller Way, Miller Court, Le Point Street, and West Le Point Street areas only. Residents of these neighborhoods will be notified of the additional detour. No issues have been identified as a result of this additional detour route, and it has been included as part of this year’s event.

ALTERNATIVES:

1. Adopt a Resolution of the City Council of the City of Arroyo Grande approving Temporary Use Permit 23-006, authorizing closure of City streets and use of City property for the 84
th Annual Arroyo Grande Valley Harvest Festival, Friday and Saturday, September 29-30, 2023;

2. Modify and adopt a Resolution of the City Council of the City of Arroyo Grande approving Temporary Use Permit 23-006, authorizing closure of City streets and use of City property for the 84
th Annual Arroyo Grande Valley Harvest Festival,
Friday and Saturday, September 29-30, 2023;

3. Do not adopt the attached Resolution; or

4. Provide other direction to staff
ADVANTAGES:

The Festival, now in its 84
th year, is a tradition in the community. The Festival celebrates the City’s heritage, fosters a sense of community, brings families and friends together, provides fundraising opportunities for local organizations, and provides quality familyoriented entertainment.

DISADVANTAGES:

The closure of streets will have an impact on parking and traffic conditions and requires the expenditure of City resources in order to ensure safety.

ENVIRONMENTAL REVIEW:

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

PUBLIC NOTIFICATION AND COMMENTS:

The event organizers are required to place an advertisement in the September 11, 2023 edition of The Tribune advising residents of street closures. The event organizers are required to mail or hand deliver the map depicting street closures and detours to every property located within the area where street closures will occur. The event organizers are also required to mail or hand deliver a notification of the opening of the gate between Emerald Bay Drive and Miller Way to every property accessed from Miller Way, Miller

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Item 9.n.

Page 5 ends

Court, the 200 and 100 blocks of Le Point Street, and W. Le Point Street. All information regarding traffic impacts will be posted prominently on the City website and social media pages. Additionally, staff will utilize the City’s message boards to inform members of the public of the road closures and detours. The Agenda was posted at City Hall and on the City’s website in accordance with Government Code 54954.2.

Attachments:

1. Proposed Resolution

2. Road Closure and Detour Map

3. Festival Areas

4. Resolution 3760

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE
PERMIT 23-006, AUTHORIZING CLOSURE OF CITY
STREETS AND USE OF CITY PROPERTY FOR THE 85
th

ANNUAL ARROYO GRANDE VALLEY HARVEST
FESTIVAL, FRIDAY AND SATURDAY, SEPTEMBER 29-30,
2023
WHEREAS, organizers of the annual Arroyo Grande Valley Harvest Festival have requested closure of City streets and use of City property; and WHEREAS, the Arroyo Grande City Code (AGMC) provides for the issuance of Temporary Use Permits for events such as the Arroyo Grande Harvest Festival and AGMC Section 10.16.050 authorizes the City Council to restrict parking on any street, and California Vehicle Code Section 21101(e) authorize the closure of streets for parades and local special events; and
WHEREAS, organizers of the annual Arroyo Grande Valley Harvest Festival will be responsible for the removal of all garbage and debris generated by the event.

WHEREAS the project is in compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land and that none of the exceptions to the Class 4 exemption set forth in State CEQA Guidelines section 15300.2 apply.

WHEREAS, the City Council finds, after due study and deliberation, that the following circumstances exist and hereby waives the $302.00 temporary use permit fee pursuant to Resolution 3760:

Temporary Use Permit Findings:

1. The operation of the requested use at the location proposed and within the time period specified will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare.

The operation of the Harvest Festival will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety or general welfare. The Festival is a family friendly event that will be held during daytime hours on Friday and Saturday September 29
th and 30th, 2023. Adherence to conditions of approval ensure that the Festival is operated in a safe and orderly manner.

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RESOLUTION NO.

PAGE 2

2. The proposed site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site.

The proposed site is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site because the proposed site is approximately ten (10) acres in size, which is large enough to prevent spill over from the event onto surrounding properties.

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

The proposed site is adequately served by East Branch Street, North and South Mason Street, and Traffic Way, which are of significant width and improvements to accommodate the kind and quantity of traffic that the temporary use will generate.

4. Adequate temporary parking to accommodate vehicular traffic to be generated by the use will be available either on-site or at alternate locations acceptable to the City Council.

Adequate parking to accommodate traffic to be generated by the Harvest Festival will be provided by use of City parking lots in the vicinity. Permitted street parking in areas not affected by road closures and parking restrictions will suffice.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby approve Temporary Use Permit 23-006 authorizing the following actions and use of the following described City property for the Harvest Festival:

Harvest Festival – Friday & Saturday, September 29
th & 30th
, 2023

1. That the City Council authorizes “no-parking/tow away” restrictions and use of the City parking area behind the former City Hall from the entrance of Mason Street and extending to the area of the Gazebo and Short Street for use between the hours of 5:00 p.m. on Thursday, September 28, 2023, until 8:00 a.m. Sunday, October 1, 2023.

2. The use of the Heritage Square Park for various displays, activities, and contests from 4:00 p.m. to 9:00 p.m. on Friday, September 29, 2023, and 8:00 a.m. to 6:00 p.m. on Saturday, September 30, 2023.

3. That the City Council authorizes “no-parking/tow away” restrictions and the use and closure of Short Street from Nelson to the Swinging Bridge from 8:00 a.m. to 6:00 p.m. on Saturday, September 30, 2023.

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RESOLUTION NO.

PAGE 3

4. That the City Council authorizes “no-parking/tow away” restrictions and the use and closure of Nelson Street from Mason Street to Bridge Street from 8:00 a.m. to 6:00 p.m. on Saturday, September 30, 2023.

5. That the City Council authorizes “no-parking/tow away” restrictions and the use and closure of Mason Street from Le Point Street to Poole Street from 8:00 a.m. to 12:00 p.m. on Saturday, September 30, 2023.

6. That the City Council authorizes “no-parking/tow away” restrictions of Poole Street from Mason Street to Traffic Way from 8:00 a.m. to 12:00 p.m. on Saturday, September 30, 2023.

7. That the City Council authorizes “no-parking/tow away” restrictions and the use and closure of Bridge Street from Traffic Way to Branch Street from 8:00 a.m. to 6:00 p.m. on Saturday, September 30, 2023.

8. That the City Council authorizes “no-parking/tow away” restrictions and use and closure of Kiwanis Park, Olohan Alley from Bridge Street to Short Street, and the City Hall parking lot of 300 East Branch Street from 8:00 a.m. to 9:00 p.m. on Friday, September 29, 2023, and from 8:00 a.m.to 6:00 p.m. on Saturday, September 30, 2023.

9. The use of the City’s electrical service as needed for the lighting of booths, sound system, and contests.

10. That the City Council authorizes “no-parking/tow away” restrictions and closure of a portion of West Branch Street from U.S. Highway 101 to Stanley Avenue on Saturday, September 30, 2023, from 10:00 a.m. to 12:00 p.m.

11. That the Arroyo Grande Police Department will control traffic around the parade route, and police officers will be stationed to give instructions to motorists on detouring the parade route.

12. That the gate between Emerald Bay Drive and Miller Way will be opened at 8 a.m. until 12:00 p.m. on Saturday, September 30, 2023, for increased resident access.

13. That the parking lot of the I.O.O.F. building located at 128 Bridge Street, be reserved for live animals and activities associated with petting zoo activities.

14. That the City Council authorizes alcohol sales to be permitted by approved vendors and only within a limited section of Olohan Alley on Saturday, September 30, 2023.

BE IT FURTHER RESOLVED that the following streets shall be closed for the Harvest Festival Parade on Saturday, September 30, 2023, from 8:00 a.m. to noon, with “noparking/tow away” restrictions starting at 7:00 am:

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RESOLUTION NO.

PAGE 4
 West and East Branch Street from Rodeo Drive to Mason Street;  West and East Branch Street from Old Ranch Road to Branch Street;  Old Ranch Road from West Branch Street to the end of the City owned property;  Wesley Street between Larchmont and West Branch Street;  Traffic Way from Fair Oaks Avenue to Station Way;
 North Mason Street from East Branch Street to Tally Ho Road; and  South Mason Street from East Branch Street to Poole Street.

In addition, E. Branch will be closed from Mason to Highway 227 (Bus Barn) from 8 a.m. to 12 noon, however, parking will be allowed.

BE IT FURTHER RESOLVED, that the Harvest Festival Committee will adhere to certain requirements and conditions imposed by the City regarding cleanup and traffic control and all other applicable conditions of the Temporary Use Permit with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

On motion by 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 25 th day of July, 2023.

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RESOLUTION NO.

PAGE 5
______________________________________

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

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RESOLUTION NO.

PAGE 6
EXHIBIT “A”

CONDITIONS OF APPROVAL
TEMPORARY USE PERMIT 23-006
85 th ANNUAL HARVEST FESTIVAL
FRIDAY AND SATURDAY, SEPTEMBER 29
th AND 30th, 2023
GENERAL CONDITIONS:

1. The Harvest Festival Committee shall ascertain and comply with all State, County and City requirements as are applicable to this project.

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

3. The Harvest Festival Committee shall comply with all of the Conditions of Approval for Temporary Use Permit 23-006.

4. To the full extent permitted by law, the Harvest Festival Committee shall indemnify, defend and hold harmless the City, its agents, officers, and employees from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, this Temporary Use Permit except liability arising out of the proven sole negligence of the City.

PUBLIC WORKS DEPARTMENT CONDITIONS:

5. The Harvest Festival Committee is to contact the Public Works Department no later than September 9, 2023, regarding the number and location of trash receptacles to be placed in the downtown area.

6. The Harvest Festival Committee is responsible for disposal of its garbage into large trash containers. The Harvest Festival Committee is responsible for providing adequate dumpsters to accommodate all garbage and recycling in addition to required trash containers.

7. The Harvest Festival Committee is responsible for providing trash can liners for all trash containers.

8. The Harvest Festival Committee is responsible for providing additional restroom supplies for the festival. The Harvest Festival Committee is also responsible for monitoring and maintenance of restroom facilities. Should the City provide these

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RESOLUTION NO.

PAGE 7
supplies, the Harvest Festival Committee will reimburse the City for the cost of these supplies and related staff time.

9. Supplemental restroom facilities shall be provided by the Harvest Festival Committee.

10. The Public Works Department will provide and place all delineators, signs and barricades for road closures, “no-parking/tow away” and detour routes. The Harvest Festival Committee shall pay for all water barricades.

11. The Harvest Festival Committee shall place an advertisement in the September 2023 edition of The Tribune advising residents of street closures and “noparking/tow away” restrictions.

12. At least two (2) weeks in advance of the event, the Harvest Festival Committee shall mail or hand deliver a notification of street closures to every property located within the area where street closures will occur.

13. At least two (2) weeks in advance of the event, the Harvest Festival Committee shall mail or hand deliver a notification of the opening of the Emerald Bay Drive gate to every property accessed from Miller Way, Miller Court, the 200 and 100 block of Le Point Street, and W. Le Point Street.

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

BUILDING AND LIFE SAFETY DIVISION CONDITIONS:

15. A handicapped accessible toilet shall be included where other portable toilets are located.

16. All electrical must be inspected by the Building and Life Safety Division prior to the event opening.

17. All tape used for marking the booth locations shall be removed by the Harvest Festival Committee immediately following the event.

18. The project shall comply with the most recent edition of the Codes as adopted by the City of Arroyo Grande. Specifically, all temporary-wiring provisions of the California Electrical Code must be met.

19. A member of the Harvest Festival Committee shall be assigned to the Swinging Bridge to enforce the five (5) person limit for the duration of the event.

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RESOLUTION NO.

PAGE 8
FIVE CITIES FIRE AUTHORITY CONDITIONS:

20. Emergency access must be maintained to the satisfaction of the Fire Chief.

21. All food booths (cooking) must comply with the Five Cities Fire Authority guidelines, must have County Health Department approval, and must ensure total compliance of booth operators. The Five Cities Fire Authority will not allow non-compliant booths to operate.

22. The use of generators must be reviewed and approved by the Fire Chief.

23. A detailed chart or map will be provided to the Fire Chief for approval prior to the event, showing placement of all booths, to include actual dimensions of access pathways for fire apparatus and emergency vehicles.

24. Per the approval of the Fire Chief, there will be medical service dedicated to the event.

25. All fire lanes must be posted and enforced in accordance with Police Department and Five Cities Fire Authority guidelines. Fire lanes and access must be approved by the Fire Chief.

26. The Harvest Festival Committee shall identify an individual to act as liaison with the Five Cities Fire Authority for the purpose of maintaining life and safety.

27. Prior to opening the event, the fire access road shall be posted. The Harvest Festival Committee shall provide continuous enforcement of the fire access road during the event.

28. The Harvest Festival Committee will coordinate and be responsible for costs associated with San Luis Ambulance to provide standby personnel and equipment for Bike Medic and golf cart transport for the entire duration of the Festival.

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NO PARKING 09/23 1500 HRS TO 09/24 1800 HRS
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ATTACHMENT 2
ATTACHMENT 3

Page 306 of 1114 ends

RESOLUTION NO. 3760

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE ESTABLISHING POLICIES TO WAIVE PERMIT

APPLICATION FEES FOR C'ERTAIN ANNUAL TEMPORARY USE

PERMIT EVENTS
WHEREAS, Temporary Use Permits for certain annual events are granted application fee refunds; and
WHEREAS, these Temporary Use Permit events meet the criteria established by the City Council on September 25, 2001 for application fee waivers; and WHEREAS, staff expends a substantial amount of City time and resources submitting application fee refund requests to Administration, the City Council, and Finance; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:

1. That a list of annual Temporary Use Permit events meeting the application fee waiver criteria be established to streamline the process of refunding permit application fees; and

2. That the initial list of Temporary Use Permit events eligible for fee waivers include the following events that have been granted a refund of permit application fees in the past: the Arroyo Valley Car Show, Christmas Caroling in the Village, Harvest Festival, March of Dimes Walk America, Nelson Green Book Fair, Strawberry Festival, Summer Concerts in the Village, and Watershed Education Fair; and

3. That Temporary Use Permit events will be added or removed from the fee waiver list only by action of the City Council.

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

AYES: Council Members Runels, Dickens, Lubin and Mayor Ferrara NOES: None
ABSENT: Council Member Costello
the foregoing Resolution was passed aRd adopted this 13th day of July 2004. w_________
Attachment 4

Page 307 of 1114 ends

RESOLUTION NO. 3760
PAGE 2
ATTEST:
lLbJkUM.JLORE, DIRECTOR OF ADMINISTRATIVE SERVICES/

DEPUTY CITY CLERK
APPROVED AS TO CONTENT:

STEV ADAMS,
Z~

CITY MANAGER
APPROVED AS TO FORM:

Page 308 of 1114 ends

RESOLUTION NO. 3760

OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of pe~ury, that Resolution No. 3760 is a true, full, and correct copy of said Resolution passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13th day of July, 2004.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of July, 2004.

KELLY Eli ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI

DEPUTY CITY CLERK

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Item 9.a.

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Patrick Holub, Associate Planner
SUBJECT: Consideration of Conditional Use Permit 23-001 and Request for Fee Waiver; Corbett Creek Floodplain and Stream Restoration ProjectCorbett Creek Between E Branch St and 379 Corbett Canyon Rd; Applicant - Coastal San Luis Resource Conservation District DATE: July 25, 2023
Phase 1 (Headcut)—
Est. Construction
Sept. ‘23
Limits of Project
“Tally Ho Project”
Maintenance by
Property Owners
“Clark Property”
Maintenance by
City and County

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Item 10.a.

City Council
Consideration of Conditional Use Permit 23-001 and Request for Fee Waiver; Corbett Creek Floodplain and Stream Restoration Project- Corbett Creek Between E Branch St and 379 Corbett Canyon Rd; Applicant - Coastal San Luis Resource Conservation District
July 25, 2023

Page 2 ends

PROJECT OBJECTIVES:

The primary objectives of the Corbett Creek Floodplain and Stream Restoration project are: improve water quality; restore the riparian habitat to a more natural state; improve flood capacity within Corbett Creek; and reduce downstream flooding impacts within and south of the City.

SUMMARY OF ACTION:

Conduct a public hearing, discuss and consider a Resolution adopting the Planning Commission’s recommendation to approve a Conditional Use Permit for the Corbett Creek Floodplain and Stream Restoration project, and find the Addendum to the project’s 2013 IS/MND adequately addresses all environmental impacts and approve a fee waiver of the associated CUP application fees in the amount of $6,388.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Future funding for the operation and maintenance of the Clark Property sediment basin component of the project will be required. The City is in discussion with the County of San Luis Obispo and the San Luis Obispo Flood Control and Water Conservation District (“District”) to determine a long-term funding source. No staff time or staff costs are anticipated in conjunction with the construction project. Preliminary cost analyses are in development, with the County sharing half of the costs involved.

The applicant, the Coastal San Luis Resource Conservation District (RCD), is also requesting a fee waiver in the amount of $6,388, which is the amount of the application fee for the Conditional Use Permit (CUP).

Funding for construction of the project is being provided by the RCD through grant funding received from the Department of Water Resources (DWR). In total, the RCD received a grant in the amount of $831,420 to complete the project.

RECOMMENDATION:

Adopt a Resolution adopting the Planning Commission’s recommendation to approve Conditional Use Permit 23-001 for the Corbett Creek Floodplain and Stream Restoration Project and find the Addendum to the project’s 2013 IS/MND adequately all addresses environmental impacts and approve a fee waiver of the associated CUP application fees in the amount of $6,388.

BACKGROUND:

Corbett Creek, a tributary to Arroyo Grande Creek, runs north and south along the west side of Corbett Canyon Road before passing under the Printz Road Bridge. From there, Corbett Creek continues south along the east side of Tally Ho Road before reaching its confluence with the Arroyo Grande Creek near East Branch Street.

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Item 10.a.

Page 3 ends

In 2007, the City received a Civil Liability Complaint Notice from the California Regional Water Quality Control Board that a violation in the form of a sewage spill had occurred in Arroyo Grande Creek, and the City was required to make restitution by expending $60,000 on supplemental environmental projects (SEP) within the City’s jurisdiction.

In partial response to the requirement, the City partnered with the RCD by providing $19,000 in initial funds toward an SEP, and later $42,000 to perform preliminary studies of the Clark Property and studies of Corbett Creek. Because Corbett Creek is a tributary to Arroyo Grande Creek, water quality improvements along Corbett Creek have impacts on the water quality in Arroyo Grande Creek, although they are separate water bodies.

Subsequently, the City also participated with the RCD in a grant application to the Department of Water Resources (DWR) for the Urban Streams Restoration Program that would provide funds for implementation of the Clark floodplain project and provide funds for design of a headcut project within Corbett Creek. A “headcut” is defined as an erosional feature that resemble a cliff or waterfall within the stream channel. As the water from the creek passes over the headcut, it erodes the creek bottom, contributing to streambed erosion and reduced flood capacity within the creek. Other partners in the grant application included Central Coast Salmon Enhancement (now known as Creeklands Conservation), California Coastal Conservancy, and landowner Mr. Michael Clark. The grant for $831,420 was awarded to RCD by the DWR, and part of the grant agreement is the City’s delivery of funds and staff time. The RCD continues to provide the administrative services for the project which includes contracting the services of subconsultants to provide design plans and reports. Full design plans have been completed, while plans for the Clark property sediment basins are at 50% design.

Between 2007 and 2012, the City provided $84,000 in funding to RCD for subconsultant services, including: appraisal of the Clark property easement; conceptual level project designs; biological surveys; development of the previously approved MND; and other environmental compliance components. By providing the $84,000 in funding, the City’s has met their obligations for the grant application and no further funds are being requested for the construction phase of the project.

The City Council approved a Memorandum of Understanding between the City and the RCD in November 2012 (see Attachment 2) for design and implementation of the project.

The Planning Commission reviewed the same project and adopted the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program. A lack of funding for maintenance of the sediment basin caused the RCD to lose grant funding for the project, which was not reviewed by the City Council at that time. Because the CUP was not reviewed or approved by the Council and due to a lack of long-term maintenance funding, the project was not able to be completed, thus the existence of a time gap in progress on the project until today.

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Item 10.a.

Page 4 ends

ANALYSIS OF ISSUES:

Project Description
The project involves watershed-scale improvements along Corbett Creek the “Tally Ho Project”, (Figure 1) and also includes a proposed sedimentation basin just north of Printz Road on Corbett Canyon Road (“The Clark property”). The Clark Property (see Figure 2) is about 16-acres in size and located adjacent to Corbett Creek, a tributary to Arroyo Grande Creek. Although the “Tally Ho Project” includes improvements on several reaches of the creek, only reach 3 has long-term maintenance agreements with property owners.

Phasing of the project is described later in this report under “Phasing”.

The project site was identified in the 2006 “Arroyo Grande Creek Erosion, Sedimentation and Flooding Alternatives Study” as a priority site for potential floodplain restoration and sediment retention to remedy existing and predicted problems concerning flood control and environmental degradation within the Arroyo Grande Creek Watershed, particularly within and downstream of the City.

The Initial Study/Mitigated Negative Declaration (IS/MND) prepared for the Corbett Creek Floodplain and Stream Restoration Project (Exhibit “C” of the attached Resolution) identifies several reaches of Corbett Creek (reaches 1-6). The Clark Property is shown as reach 6, while reaches 1-5 encompass the numerous residential properties beginning at the East Branch Street culvert where Corbett Creek joins Arroyo Grande Creek and extends upstream approximately one mile to the Clark Property. Improvements along reaches 1-5 are identified as the “Tally Ho project”.

The Tally Ho project consists of arresting a large headcut (approximately 4-6+ feet high) that is progressively moving upstream, exacerbating bank erosion, and contributing to fine sediment deposition in the main stem of Arroyo Grande Creek. A “headcut” is defined as an erosional feature of intermittent and perennial streams. In periods of low flow, headcuts can resemble a very short cliff or bluff and can result in waterfalls or the creation of riffle zones. Without restoring the channel to its natural state, the headcut will contribute to increased erosivity over time and increased incision of the channel, exacerbating the issue.

The project scope includes regrading of the headcut, an installation of a series of grade controls, and revegetation of the site to stabilize the headcut and prevent further movement upstream and consequent release of sediment. The expected reduction in sediment delivery downstream due to remediation is expected to be approximately 2,500 cubic yards of material over a ten-year period.

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Item 10.a.

Page 5 ends

Figure 1- The Tally Ho Project

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Item 10.a.

Page 6 ends

Figure 2 – Reach 6 – The Clark Property Sediment Basins Figure 2 shows the location of the project and delineates each of the project reaches.

The RCD has worked with the Clark property owner to obtain a 12.5-acre conservation easement on a portion of the project site to reduce peak flows and chronic fine sediment loading at the confluence of Corbett Canyon and Carpenter Canyon Creeks, which will be designed to achieve multiple objectives:
 Flood protection: floodplain restoration would allow this site to detain peak flows and fine sediment before they reach the mainstem of Arroyo Grande Creek, thereby reducing stress on lower Arroyo Grande Creek where inadequate levees threaten valuable farmland and adjacent urban areas with flooding.

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Item 10.a.

Page 7 ends

 Restoration of riparian and floodplain habitat: the proposed project would also have the benefit of restoring riparian and floodplain habitat within the Arroyo Grande Creek watershed, a resource that has been impacted by channelization and encroachment over the last 150 years.
 Water quality protection: this project would improve and protect Arroyo Grande Creek water quality through sediment detention, and by increasing flood protection for the South San Luis Obispo County Sanitation District plant. The South SLO Sanitation Plant is located immediately adjacent to the AG Creek flood control channel, and a levee breach (such as in 2001) or overtopping event could compromise operations at the Sanitation Plant. This project would help reduce peak flows in the AG Creek flood control channel by restoring Corbett Creek’s access to the historic floodplain.

Additionally, restoring the impaired stretch of Corbett Creek will reduce future sediment loads to mainstem Arroyo Grande Creek, thereby protecting Central Coast steelhead spawning habitat, as well as improving flood protection to residents adjacent to Corbett Creek and to landowners in the Zone 1/1A Flood Control District at the downstream end of Arroyo Grande Creek.

Per Arroyo Grande Municipal Code Section 16.44.050.C.6, “Creeks shall remain in their natural state and shall not be altered unless approved by the city council in conjunction with an application for a conditional use permit and permitted by other responsible agencies.” The applicant will be responsible for obtaining any permits required by other responsible agencies such as the California Department of Fish and Wildlife (CDFW) and the Central Coast Regional Water Quality Control Board (CCRWQCB) prior to commencing construction.

Phasing
At this time, the RCD has maintenance guarantees from property owners in reach 3; therefore, this is the only portion of the overall project that has an imminent schedule of construction. The RCD is actively working with the property owners in reaches 4-5 to secure maintenance guarantees. If maintenance of the work is guaranteed, additional grant funds may be released from the granting agency and the RCD will be able to accomplish further restoration work upstream of James Way. Approval of the proposed CUP would provide the RCD with the flexibility to accomplish the phases of restoration work as grant funding is made available without the need for separate applications and environmental documents from each property owner.

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Figure 3 – Reach 3
Previous Consideration
On April 16, 2013, the Planning Commission (PC) reviewed the same project and adopted a Resolution adopting a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP). A lack of funding for maintenance of the sediment basin caused the RCD to lose grant funding for the project, which was not reviewed by the City Council at that time. The staff report and resolution as well as the minutes from the meeting are included as Attachment 4. Because the CUP was not reviewed or approved by the Council and due to a lack of long-term maintenance funding, the project was not able to be completed.

The PC again reviewed the proposed project at its regular meeting on June 6, 2023. The Commission spoke about their desire to have restoration work occur throughout the entire creek channel an expressed support for the project in general. The PC recommended approval of the project, adopting Planning Commission Resolution 23-2383. The staff report and resolution for this project as well as the minutes from the meeting are included as Attachment 5.

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Staff Advisory Committee (SAC)
The SAC reviewed the proposed project on September 8, 2022, and February 2, 2023, and made comments regarding the scope of work, access easements, debris removal, ongoing maintenance costs and future impacts on flooding capacity of the creek. The Committee was extremely supportive of the project and recommended approval to the City Council with no additional conditions added.

Outreach and Access
The RCD will be coordinating landowner access for all portions of the project. To date, the RCD has preliminary agreements from several of the landowners involved along the project area. Additionally, the RCD has approval for access from two of the three property owners that own property within the creek channel. It has been determined that these agreements will provide sufficient access to complete the work related to the headcut. As maintenance of the remaining portions of the Tally Ho Project is secured, access agreements will be executed with each of the effected properties along Tally Ho, of which there are thirty-three properties. Agreements and easements for use of the Clark property are fully secured. It is estimated that construction could occur in approximately three years as the designs are completed and maintenance of the basins is guaranteed.

The RCD has coordinated multiple outreach meetings with residents in the project area that aimed to inform residents of the upcoming work, provide resources to the homeowners for maintenance of their property within the floodplain and answer any questions from members of the public regarding the project and the health of the riparian ecosystem. The first community meeting was held at 262 Tally Ho on January 20th, primarily to discuss flood damage and provide the residents with resources to assist with the flooding impacts. A second meeting occurred at the City’s Council Chambers on April 19, 2023. The RCD provided information regarding the restoration project plans and, along with staff, answered a number of questions related to the project and the creek. A third outreach meeting was held at the Council Chambers on July 19, 2023. The meeting again focused on describing construction and maintenance activities to the residents.

Environmental Review
The IS/MND was originally prepared by the City of Arroyo Grande and circulated and certified by the Planning Commission on April 16, 2013. When the project was re-initiated by RCD, staff determined and RCD agreed that as the applicant, they would be the lead agency on the project with the City of Arroyo Grande as a responsible agency. The applicant prepared an addendum to the IS/MND, which is a document that is prepared if only minor technical changes or additions are necessary, or no conditions exist calling for the preparation of a subsequent negative declaration. That addendum was reviewed by the Planning Commission on June 6, 2023. Environmental factors that are potentially affected by the project and analyzed in the IS/MND include biological resources, cultural

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resources, air quality, hydrology/water quality, and noise. The sixteen (16) mitigation measures contained in the environmental document will be incorporated into the project plans as conditions. The MMRP (Exhibit “D” of the attached Resolution) ensures compliance with the adopted mitigation measures during the pre-construction, construction, and post-construction phases of the project.

As part of the project’s grant funding, monitoring of the site is required for a period of two (2) years after completion of the project. Monitoring will be completed by RCD staff and is included in their budget for the project. Monitoring activities will ensure that the project’s impacts on the riparian habitat will be minimized and that the new vegetation is established to prevent the proliferation of invasive species in the project area.

Cultural Resources
California Assembly Bill 52, which became effective on July 1, 2015, revised several potions of California’s Public Resources Code to broaden the requirements for tribal consultation and to provide a more formal structure for California’s tribes to provide meaningful input to protect their cultural heritage during the CEQA process. California Public Resources Code section 21084.2 now establishes that “a project with an effect that may cause a substantial adverse change in the significance of a tribal cultural resource is a project that may have a significant effect on the environment.” Lead agencies are required to avoid damaging effects to any tribal cultural resource when feasible. This requires lead agencies to begin consultation with California Native American tribes that are traditionally and culturally affiliated with the geographic area of the proposed project prior to the release of a negative declaration (ND), mitigated negative declaration (MND), or environmental impact report (EIR) for a project.

Because AB52 was not in effect at the time when the project’s MND was originally adopted in 2013, that MND would not have been sufficient to support approval of the CUP at this time . Recognizing this, City staff partnered with the RCD to contact the Native American Heritage Commission (NAHC) to determine which Native American tribes have requested consultation on projects within our geographical area. In response, the NAHC provided a list of nine (9) tribes that have previously requested to be notified of projects within our area. Each of these tribes were provided with a project description and a map depicting the areas of activity. Of the nine (9) tribes, two (2) contacted the City with questions about the project with one (1) of those discussions resulting in a request for formal consultation with the tribe. A formal consultation meeting was held on April 14, 2023. During that meeting the RCD and the tribal representative were able to come to an agreement regarding monitoring of the site during construction activities. Cultural resource mitigation measures in the MND include: requirements that construction activities be suspended if any cultural resources are unearthed and that the Coroner be contacted in any human remains are located. In addition, archeological and cultural

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resource monitors will be onsite during all grading and excavation activities. Those mitigation measures were previously incorporated in the 2013 MND and, therefore, no new mitigation measures were necessary. Funding for the presence of a cultural monitor will be provided by the RCD and the cultural monitor will be selected by the tribal representative.

No Rise Certification
As a requirement of receiving approval to work within the extents of the creek, the applicant is required to certify that the construction activity and associated vegetation management will not result in increased flooding downstream of the project site. The RCD’s District Engineer has completed an analysis of the post-construction flooding potential and has concluded that the project will not result in additional flooding compared to pre-project flow rates and channel capacity. City Engineering staff have peer-reviewed the analysis and have concluded that the report was completed by a qualified individual using a methodology that is appropriate for this type of analysis. That analysis is included as Attachment 6.

Fee Waiver
The applicant is also requesting a fee waiver in the amount of $6,388, which is the amount of the application fee for the CUP. Staff is supportive of the fee waiver request because the project serves a public purpose of promoting the public health, safety, and welfare through as reduction in expenditures for flood control, reduction in the need for rescue and relief efforts, and reduction in damage to public facilities and utilities. Further, the project serves a public purpose by safeguarding important environmental and sensitive biological resources contributing to a healthy functioning ecosystem. As the applicant, RCD is a special district established by California law that does not receive annual local tax base but relies on grants, service contracts, and private donations to protect and enhance natural resources through education, restoration, conservation, and collaboration with local stakeholders.

ALTERNATIVES:

1. Conduct the public hearing and adopt a Resolution approving Conditional Use Permit 23-001, finding the Addendum to the project’s 2013 IS/MND adequately addresses all environmental impacts and approving a fee waiver in the amount of $6,388;

2. Do not approve the Resolution approving Conditional Use Permit 23-001, finding the Addendum to the project’s 2013 IS/MND adequately addresses all environmental impacts and approving a fee waiver in the amount of $6,388 and direct staff to return with a Resolution denying the project; or

3. Provide other direction to staff.

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ADVANTAGES:

Completion of the project will have long-term benefits for all properties along this section of the creek and will increase flood capacity within the creek as well as remove invasive species and other debris that is having negative impacts on the heath of the ecosystem.

This project also aims to reduce risks to life safety and property damage by reducing flooding potential along this stretch of the creek.

DISADVANTAGES:

On-going maintenance costs will be necessary to ensure the proper function of the sediment basin.

ENVIRONMENTAL REVIEW:

In accordance with the California Environmental Quality Act (CEQA) Guidelines, staff conducted an Initial Study (IS) and prepared a draft Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP). The IS/MND was certified by the Planning Commission on April 16, 2013. Due to the age of the environmental document, the applicant prepared an addendum to the IS/MND. That addendum was reviewed by the Planning Commission on June 6, 2023. The plans, IS/MND, MMRP and Addendum are included as Exhibits “B,” “C,” “D,” and “E,” respectively, in the attached Resolution.

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. Notices were sent to property owners located within 500 feet of the project site. No public comments were received. A sign notifying the public of the public hearing was posted at the project site, notifying the public of the public hearings at Planning Commission and City Council.

Attachments:

1. Proposed Resolution

2. Memorandum of Understanding (MOU)

3. Planning Commission Resolution 23-2383

4. April 16, 2013, Planning Commission staff report, resolution and minutes

5. June 6, 2023 Planning Commission staff report, resolution and minutes

6. No Rise Certification

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ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING CONDITIONAL USE
PERMIT 23-001 AND GRANTING A FEE WAIVER FOR THE
ASSOCIATED APPLICATION FEES; LOCATION – AN

APPROXIMATELY ONE-MILE STRETCH OF CORBETT
CREEK BETWEEN EAST BRANCH STREET AND 379
CORBETT CANYON ROAD; APPLICANT – COASTAL SAN

LUIS RESOURCE CONSERVATION DISTRICT
WHEREAS, the project site is an approximately one-mile stretch of Corbett Creek located between East Branch Street and 379 Corbett Canyon Road, and WHEREAS, the applicant has filed Conditional Use Permit 23-001 to complete a comprehensive restoration project; and
WHEREAS, the Staff Advisory Committee considered the project on September 8, 2022 and February 2, 2023 and recommended approval of the project; and WHEREAS, in accordance with the California Environmental Quality Act (CEQA) Guidelines, staff conducted an Initial Study (IS) and prepared a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP). The IS/MND was reviewed by the Planning Commission on April 16, 2013. Due to the age of the environmental document, the applicant prepared an addendum to the IS/MND. The previously certified IS/MND, the MMRP and the addendum are included as Exhibits “B” and “C” and “D,” respectively, in this attached Resolution; and WHEREAS, the City has limited approval and implementing authority over the project, and thus is a “responsible agency” for the project pursuant to the requirements of CEQA and the terms of the Addendum to the IS/MND; and
WHEREAS, all the procedures of CEQA have been met, and the MND prepared in connection with the project is sufficiently detailed so that all the potential effects of the project on the environment and measures necessary to avoid or substantially lessen such effects have been evaluated in accordance with CEQA; and
WHEREAS, the Planning Commission of the City of Arroyo Grande has reviewed the project at a duly noticed public hearing on June 6, 2023; and
WHEREAS, the City Council of the City of Arroyo Grande has reviewed the project at a duly noticed public hearing on July 25, 2023; and
WHEREAS, the City Council finds, after due study, deliberation, public hearing and finding all legal other prerequisites to the adoption of this Resolution have occurred, the following circumstances exist, and the Recitals herein incorporated by reference:

1. Environmental Determination. As responsible agency, the City Council of Arroyo Grande has determined the addendum to the previously certified IS/MND, the MMRP and the addendum,

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RESOLUTION NO.

PAGE 2
included as Exhibits “B” and “C” and “D,” respectively in this attached Resolution, is adequate for use by the City, consistent with Cal. Code Regs. tit. 14 § 15096.

2. Conditional Use Permit Findings:

1. The proposed use is permitted within the subject district pursuant to the provisions of this section and complies with all the applicable provisions of this title, the goals, and objectives of the Arroyo Grande General Plan, and the development policies and standards of the City.

The proposed use of the site for a restoration project is permitted with approval of a conditional use permit by the City Council after receiving a recommendation from the Planning Commission and the project complies with all applicable provisions of the Arroyo Grande General Plan and Municipal Code.

2. The proposed use would not impair the integrity and character of the district in which it is to be established or located.

The proposed use of the site for a creek restoration project will not impair the integrity of the project site due to the intent of the project to return the site to its natural condition.

3. The site is suitable for the type and intensity of use or development that is proposed.

The site is an approximately one-mile stretch of Corbett Creek, which is suitable for a creek restoration project and meets the development standards of the Arroyo Grande Municipal Code.

4. There are adequate provisions for water, sanitation, and public utilities and services to ensure public health and safety.

The project involves restoring a one-mile section of creek to a natural state.

Based on the project description, no utilities will be required at the site. No aspect of the proposed project is anticipated to be overly impactful to the existing services. Conditions of approval developed for the project will additionally ensure public services are minimally impacted.

5. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to properties and improvements in the vicinity.

The proposed use will not be detrimental to the public health, safety or welfare, nor materially injurious to properties or improvements in the vicinity, as it will comply conditions of approval specifically developed for the project.

3. Fee Waiver.

1. The proposed fee waiver request may be granted by the City Council because

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RESOLUTION NO.

PAGE 3
the project:
a. Serves a public purpose of promoting the public health, safety, and general welfare by;
i. Reducing the expenditure of public money for costly flood control projects;
ii. Reducing the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public;
iii. Reducing damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines; and streets and bridges located in areas of special flood hazard;
b. Serves a public purpose by safeguarding important environmental and sensitive biological resources contributing to a healthy, functioning ecosystem; and
c. Is proposed by the San Luis Coastal Resource Conservation District, a special district established by California law that does not receive annual local tax base but relies on grants, service contracts, and private donations to protect and enhance natural resources through education, restoration, conservation, and collaboration with local stakeholders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby approves Conditional Use Permit 23-001 as set forth in Exhibits “B,” “C,” and “D”, attached hereto and incorporated herein by this reference, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

On motion by Commissioner , seconded by Commissioner , and by the following roll call vote, to wit:

AYES:

NOES:

ABSTAIN
ABSENT:
the foregoing Resolution was adopted this 25th day of July, 2023

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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

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RESOLUTION NO.

PAGE 5
EXHIBIT ‘A’

CONDITIONS OF APPROVAL
CONDITIONAL USE PERMIT 23-001

CORBETT CREEK RESTORATION PROJECT

COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION

GENERAL CONDITIONS

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

2. The applicant shall comply with all conditions of approval for Conditional Use Permit 23-001.

3. This application shall automatically expire on July 25, 2025 unless a Lake and Streambed Alteration permit is issued by the California Department of Fish and Wildlife (CDFW). Thirty (30) days prior to the expiration of the approval, the applicant may apply for an extension of one (1) year from the original date of expiration.

4. Development shall occur in substantial conformance with the plans presented to the City Council at the meeting of July 25, 2022 and marked Exhibit B.

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

6. A copy of these conditions shall be incorporated into all construction documents.

7. At the time of application for construction permits, plans submitted shall show all development consistent with the approved site plan, floor plan, architectural elevations and landscape plan.

8. All conditions of this approval run with the land and shall be strictly adhered to, within the time frames specified, and in an on-going manner for the life of the project. Failure to comply with these conditions of approval may result in an immediate enforcement action. If it is determined that violation(s) of these conditions of approval have occurred, or are occurring, this approval may be revoked pursuant to Development

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RESOLUTION NO.

PAGE 6
Code Section 16.08.100.

GENERAL CONDITIONS

9. All project improvements shall be designed and constructed in accordance with the most recent version of the City of Arroyo Grande Standard Specifications and Engineering Standards.

10. Preserve existing survey monuments and vertical control benchmarks in compliance with Standard Specifications Section 5-1.26A.

11. The applicant shall be responsible for obtaining an encroachment permit for all work within a public right-of-way (City, County and/or Caltrans).

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EXHIBIT B

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INITIAL STUDY / MITIGATED NEGATIVE DECLARATION March 2013 Corbett Creek Floodplain and Stream Restoration Project

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INITIAL STUDY/

MITIGATED NEGATIVE

DECLARATION
Map of Clark Property (APN 007-791-032)
Staff Project No. 13-001
Corbett Creek Floodplain and Stream Restoration Project March 2013

EXHIBIT C

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Table of Contents:

Introduction .................................................................................................................................................. 5 Introduction and Regulatory Guidance..................................................................................................... 5 Lead Agency .............................................................................................................................................. 5 Purpose and Document Organization ....................................................................................................... 6 Summary of Findings................................................................................................................................. 6 Project Description........................................................................................................................................ 7 Introduction .............................................................................................................................................. 7 Background and Need for Project ............................................................................................................. 9 Other Required Public Agency Approvals ...............................................................................................10 Related Projects ......................................................................................................................................10 Environmental Checklist .............................................................................................................................11 Project Information ................................................................................................................................. 11 Environmental Factors Potentially Affected ...........................................................................................13 Determination .........................................................................................................................................13 Evaluation of Environmental Impacts .....................................................................................................14 Environmental Issues ..................................................................................................................................15

1. Aesthetics ............................................................................................................................................15

2. Agriculture and Forestry Resources ....................................................................................................16

3. Air Quality ...........................................................................................................................................16

4. Biological Resources ............................................................................................................................18

5. Cultural Resources ..............................................................................................................................21

6. Geology and Soils ................................................................................................................................23

7. Greenhouse Gas Emissions .................................................................................................................25

8. Hazards and Hazardous Materials ......................................................................................................25

9. Hydrology and Water Quality .............................................................................................................26

10. Land Use and Planning ......................................................................................................................29

11. Mineral Resources ............................................................................................................................30

12. Noise .................................................................................................................................................30

13. Population and Housing ....................................................................................................................32

14. Public Services ...................................................................................................................................33

15. Recreation .........................................................................................................................................33

16. Transportation/Traffic.......................................................................................................................34

17. Utilities and Service Systems ............................................................................................................34

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Mandatory Findings of Significance ............................................................................................................36 Summary of Mitigation Measures ..............................................................................................................37 References ..................................................................................................................................................43

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Introduction
Introduction and Regulatory Guidance
The Initial Study/Mitigated Negative Declaration (IS/MND) has been prepared by the City of Arroyo Grande (the City) to evaluate the potential environmental effects of the proposed project. This document has been prepared in accordance with the California Environmental Quality Act (CEQA), Public Resources Code §21000 et seq., and the State CEQA Guidelines, California Code of Regulations (CCR) §15000 et seq.

An Initial Study is conducted by a lead agency to determine if a project may have a significant effect on the environment [CEQA Guidelines §15063(a)]. If there is substantial evidence that a project may have a significant effect on the environment, an Environmental Impact Report (EIR) must be prepared, in accordance with CEQA Guidelines §15064(a). However, if the lead agency determines that revisions in the project plans or proposals made by or agreed to by the applicant avoid, reduce or mitigate the potentially significant effects to a less-than-significant level, a Mitigated Negative Declaration may be prepared instead of an EIR [CEQA Guidelines §15070(b)]. The lead agency prepares a written statement describing the reasons a proposed project would not have a significant effect on the environment and, therefore, why an EIR need not be prepared. This IS/MND conforms to the content requirements under CEQA Guidelines §15071.

Trustee and Responsible Agencies
The following public agencies have legal responsibilities for carrying out or approving portions of the project. A responsible agency must actively participate in the lead agency’s CEQA process, review the lead agency’s CEQA document, and use that document when making a decision on the project. The responsible agency must rely on the lead agency’s environmental document to prepare and issue its own findings regarding the project.

California Department of Fish and Wildlife (CDFW) – Regulatory agency Regional Water Quality Control Board (RWQCB) – Regulatory agency US Fish and Wildlife Service (FWS) – Regulatory agency
US Army Corps of Engineers (USACE) – Regulatory agency
California Coastal Conservancy (CCC) – Funder, grant contractor California Department of Water Resources (DWR) – Funder, grant contractor Coastal San Luis Resource Conservation District (RCD) – Project Manager Lead Agency
The lead agency is the public agency with primary approval authority over the proposed project. In accordance with CEQA Guidelines §15051(b)(1), "the lead agency will normally be an agency with general governmental powers, such as a city or county, rather than an agency with a single or limited purpose." The lead agency for the proposed project is the City of Arroyo Grande. The contact person for the lead agency is:

Kelly Heffernon, AICP
Associate Planner
City of Arroyo Grande
Arroyo Grande, CA 93420
(805) 473-5420

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Purpose and Document Organization
The purpose of this document is to evaluate the potential environmental effects of the proposed project. Mitigation measures have been identified and incorporated into the project to eliminate any potentially significant impacts or reduce them to a less-than-significant level.

This document is organized as follows:

Introduction
This chapter provides an introduction to the project and describes the purpose and organization of this document.

Project Description
This chapter describes the reasons for the project, scope of the project, and project objectives.

Environmental Setting, Potential Impacts and Mitigation Measures This chapter identifies the significance of potential environmental impacts, explains the environmental setting for each environmental issue, and evaluates the potential impacts identified in the CEQA Environmental (Initial Study) Checklist. Mitigation measures are incorporated, where appropriate, to reduce potentially significant impacts to a less-thansignificant level.

Mandatory Findings of Significance
This chapter identifies and summarizes the overall significance of any potential impacts to natural and cultural resources, cumulative impacts, and impact to humans, as identified in the Initial Study.

Summary of Mitigation Measures
This chapter summarizes the mitigation measures incorporated into the project as a result of the Initial Study.

References
This chapter identifies the references and sources used in the preparation of this IS/MND. It also provides a list of those involved in the preparation of this document.

Summary of Findings
Section 3 of this document contains the Environmental (Initial Study) Checklist that identifies the potential environmental impacts (by environmental issue) and a brief discussion of each impact resulting from implementation of the proposed project.

In accordance with §15064(f) of the CEQA Guidelines, a Mitigated Negative Declaration shall be prepared if the proposed project will not have a significant effect on the environment after the inclusion of mitigation measures in the project. Based on the available project information and the environmental analysis presented in this document, there is no substantial evidence that, after the incorporation of mitigation measures, the proposed project would have a significant effect on the environment. It is proposed that a Mitigated Negative Declaration be adopted in accordance with the CEQA Guidelines.

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Project Description
Introduction
The City of Arroyo Grande (the City) has prepared this Initial Study/Mitigated Negative Declaration (IS/MND) to evaluate the potential environmental effects of the Corbett Creek Floodplain and Stream Restoration Project (the “Project”). The Project specifically involves RCD’s acquisition of a 12.5 acre conservation easement, and the design and construction of a sedimentation and flood reduction basin on the easement property. This Initial Study also includes an analysis of a proposed sediment removal and creek restoration project downstream along Corbett Creek intended to reduce flooding in that area.

Project Scope and Location
The project reach begins at the East Branch Street culvert and extends upstream approximately one (1) mile to the north end of the Clark Property (APN 007-791-032). As indicated in Exhibit A below, the focus of the Project area is identified as Reach 6. Additional environmental review will be performed for Reaches 1 through 5 once a scope of work is better defined. This IS/MND addresses impacts for Reaches 1 through 5 where they are foreseeable.

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Exhibit A

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Background and Need for Project
A conservation easement and sedimentation reduction project is being sought on the subject property as a strategic location to carry out inter-related goals of the California Department of Water Resources Flood Protection Corridor Program and the City of Arroyo Grande’s goals stated in the Conservation/Open Space and Agricultural Element of the 2001 General Plan and 2007 Creek Resources Protection Study (see Exhibit B below for delineation of easement area).

Exhibit B
(yellow line)

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The project consists of two components as follows:

1. The acquisition by RCD of a conservation easement in perpetuity over 12.50 acres of the 15.79- acre Clark Property at the confluence of Carpenter Creek and Corbett Creek to act as a floodplain and thereby attenuate peak flows. The conservation easement area will be used to construct a sediment basin, a floodwater detention area and a riparian habitat enhancement area. These easement acquisition and construction components of the project are identified in a technical study (Swanson Hydrology and Geomorphology, 2006) as critical to alleviating flooding on Corbett Creek and reducing stress on lower Arroyo Grande Creek through the reduction of peak flows and fine sediment. These project components have also been identified as providing an important location upon which to restore riparian and floodplain habitat within an urban wildlife corridor. Most of the engineering design, permitting, implementation and monitoring will be completed using grant funds obtained from the Department of Water Resources (DWR) through the Urban Streams Restoration Program. The estimated sediment delivery reduction provided by the site is approximately nine hundred (900) tons per year.

Specific elements of the project include the following:

Conservation easement acquisition.

Sedimentation reduction through construction of active and passive sedimentation basins.

Restoration of floodplain and riparian habitat.

2. Design and permitting for a channel restoration project to re-establish the channel geometry of approximately nine hundred feet (900’) of Corbett Creek (Reach 4) and thereby increasing flow volumes. Issues that will be considered in the design process include a four-foot (4’) high head cut that is migrating upstream, sediment from uplands and developments that are clogging stormwater ditches and Corbett Creek, the increase in wetlands and marsh plants in the creek resulting in reduced creek flow volumes, and individual landowner’s activities in the floodplain that cause or encourage erosion. Currently there are no identified implementation funds for this component of the project.

Other Required Public Agency Approvals
California Department of Fish and Wildlife
Regional Water Quality Control Board
US Fish and Wildlife Service
US Army Corps of Engineers
Related Projects
None.

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Environmental Checklist
Project Information
Project Title: Corbett Creek Floodplain and Stream Restoration Project (Staff Project No. 13-001)
Lead Agency Name & Address: City of Arroyo Grande
300 East Brach Street
Arroyo Grande, CA 93420
Contact Person & Telephone
Number:

Kelly Heffernon, Associate Planner
(805) 473-5420
Project Location: 1. APN 007-791-032 (Clark Property)

2. Corbett Creek reach (multiple properties)
Project Sponsor Name & Address: City of Arroyo Grande
300 East Brach Street
Arroyo Grande, CA 93420
General Plan Designation: 1. Low Density Residential (LD); Conservation Open Space (C/OS)

2. Low-Medium Density Residential (LM); Conservation
Open Space (C/OS)
Zoning: 1. Residential Hillside (RH); Public Facility (PF) (combining designation for the portion of the property containing the creek channel)

2. Residential Suburban (RS); Single Family (SF); Village Mixed Use (VMU); Village Core Downtown (VCD); Public Facility (PF) (combining designations for portions of properties containing the creek channel)
Description of Project: Acquisition of a conservation easement and design and implementation of a sediment reduction project for the purpose of floodplain restoration, sediment capture and peak flow attenuation along specific reaches of Corbett Creek.

Surrounding Land Uses: The Clark Property contains a barn, equestrian trails, corals and vacant open space. Properties located downstream along the creek channel are primarily developed with single family residences with some commercially developed properties existing closer to the Village Core area. Several of the properties along this stretch are vacant.

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Project Setting: The City of Arroyo Grande is located in the southwestern portion of San Luis Obispo County, and the project site is located within the northeast section of the City of Arroyo Grande. The City is 5.45 square miles in size and is bounded by the Cities of Grover Beach and Pismo Beach to the southwest and west, and to the unincorporated County to the north, east and south. U.S. 101 extents northwest and southeast through the middle of the City, and Highway 227 runs east from U.S. 101 through the Village Area. Residential Rural and Suburban development characterize unincorporated areas to the north and southeast, and Agricultural uses dominate the Arroyo Grande Valley that extends northeast and south of the City. The project area is the reach of Corbett Creek from the northern City border to the village Commercial area in the center of the City at the confluence of Arroyo Grande Creek. The project area includes residential development adjacent to Corbett Creek except at the Village Core where there are four parcels zoned Village Core/Village Mixed Use upon which there is an existing unoccupied structure.

Plans have been approved to develop a grocery store.

The topography of the City ranges from moderate and steep hillsides to the north of U.S. 101 to relatively flat parcels toward the center of town, to moderate slopes further south. The project area has varying topographical gradients with an approximate 2-5% slope northeast.

Corbett Creek runs north/south to Arroyo Grande Creek. The Wilmar Avenue fault is a potentially active fault adjacent to the City, and the Pismo fault underlies portions of Arroyo Grande but is inactive and poses very low potential fault rupture hazard to the City. No known active faults underlie the project area.

The Corbett Creek reach is one of three (3) main tributaries within the City limits. The creek flows are generally perennial in the project reach with higher flows in the winter and very low flow in the summer. The area enjoys a Mediterranean climate with most precipitation occurring from November to March. Corbett Creek stream flows remain elevated in the spring as groundwater and subsurface flows contribute to the stream. The subwatershed is dominated by agriculture and rural residential land uses. At the project reach the channel is not formally channelized; however, encroachment activities by residents over the years have effectively channelized portions of the creek. Vegetation within the project area includes native and exotic grasses, native and exotic brush including blackberry and Willow trees, and ornamental landscaping on the residential properties.

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Environmental Factors Potentially Affected
The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact", as indicated by the checklist on the following pages:

Aesthetics Agricultural Resources Air Quality
Biological Resources Cultural Resources Geology/Soils
Greenhouse Gas Emissions Hazards & Hazardous Materials Hydrology/Water Quality Land Use/Planning Mineral Resources Noise
Population/Housing Public Services Recreation
Transportation/Traffic Utilities/Service Systems Mandatory Findings of Significance Determination
On the basis of this initial evaluation:

I find that the proposed project COULD NOT have a significant effect on the environment and a NEGATIVE DECLARATION will be prepared.

I find that, although the original scope of the proposed project COULD have had a significant effect on the environment, there WILL NOT be a significant effect because revisions/mitigations to the project have been made by or agreed to by the applicant. A MITIGATED NEGATIVE DECLARATION will be prepared.

I find that the proposed project MAY have a significant effect on the environment and an ENVIRONMENTAL IMPACT REPORT or its functional equivalent will be prepared.

I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated impact" on the environment. However, at least one impact has been adequately analyzed in an earlier document, pursuant to applicable legal standards, and has been addressed by mitigation measures based on the earlier analysis, as described in the report's attachments. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the impacts not sufficiently addressed in previous documents.

I find that, although the proposed project could have had a significant effect on the environment, because all potentially significant effects have been adequately analyzed in an earlier EIR or Negative Declaration, pursuant to applicable standards, and have been avoided or mitigated, pursuant to an earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project, all impacts have been avoided or mitigated to a less-thansignificant level and no further action is required. _________________________________ ________________________________ Kelly Heffernon, AICP Date
Associate Planner

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Evaluation of Environmental Impacts

1. A brief explanation is required for all answers, except "No Impact", that are adequately supported by the information sources cited. A "No Impact" answer is adequately supported if the referenced information sources show that the impact does not apply to the project being evaluated (e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on general or project-specific factors (e.g., the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis).

2. All answers must consider the whole of the project-related effects, both direct and indirect, including off-site, cumulative, construction, and operational impacts.

3. Once the lead agency has determined that a particular physical impact may occur, the checklist answers must indicate whether that impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate when there is sufficient evidence that a substantial or potentially substantial adverse change may occur in any of the physical conditions within the area affected by the project that cannot be mitigated below a level of significance. If there are one or more "Potentially Significant Impact" entries, an Environmental Impact Report (EIR) is required.

4. A "Mitigated Negative Declaration" (Negative Declaration: Less Than Significant with Mitigation Incorporated) applies where the incorporation of mitigation measures, prior to declaration of project approval, has reduced an effect from "Potentially Significant Impact" to a "Less Than Significant Impact with Mitigation." The lead agency must describe the mitigation measures and briefly explain how they reduce the effect to a less than significant level.

5. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR (including a General Plan) or Negative Declaration [CCR, Guidelines for the Implementation of CEQA, § 15063(c)(3)(D)].

References to an earlier analysis should:
a) Identify the earlier analysis and state where it is available for review. b) Indicate which effects from the environmental checklist were adequately analyzed in the earlier document, pursuant to applicable legal standards, and whether these effects were adequately addressed by mitigation measures included in that analysis. c) Describe the mitigation measures in this document that were incorporated or refined from the earlier document and indicate to what extent they address site-specific conditions for this project.

6. Lead agencies are encouraged to incorporate references to information sources for potential impacts into the checklist or appendix (e.g., general plans, zoning ordinances, biological assessments). Reference to a previously prepared or outside document should include an indication of the page or pages where the statement is substantiated.

7. A source list should be appended to this document. Sources used or individuals contacted should be listed in the source list and cited in the discussion.

8. Explanation(s) of each issue should identify:
a) the criteria or threshold, if any, used to evaluate the significance of the impact addressed by each question and
b) the mitigation measures, if any, prescribed to reduce the impact below the level of significance.

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Environmental Issues

1. Aesthetics
Environmental Setting
The Clark Property is about 16 acres in size and is located adjacent to Corbett Creek, a tributary to Arroyo Grande Creek near the confluence of Carpenter and Corbett Creeks. The portion of the property to be encumbered with the proposed conservation easement consists primarily of open space, the creek and riparian corridor, and several small isolated wetlands. An outbuilding and a series of fenced pastures currently occupy most of the property, with approximately six (6) acres of land in seasonal pasture. The conservation easement will encompass a portion of the fenced pasture area, but does not include any structures. The project would utilize approximately 12.5 acres for a conservation easement for the purpose of restoring a historic floodplain. The project would create a sedimentation basin, expand a wetland area, construct an earthen berm around the detention area to impound additional runoff, and install control structures. These improvements would help to attenuate peak storm flows, thereby increasing flood protection to urban and agricultural areas downstream. The proposed project would enhance the rural setting by placing existing open space in a perpetual conservation easement and by adding riparian vegetation. There are no visual impacts anticipated.

Project improvements downstream along the Corbett Creek reach include channel restoration at strategic locations. Improvements include removing a four foot (4’) high head-cut that is migrating upstream, removal of sediment, and strategic removal of vegetation to increase conveyance capacity.

These improvements have not yet been designed, but there are no expected visual impacts associated with this component of the project.

Would the project:

Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Less Than
Significant
Impact
No Impact
a) Have a substantial adverse affect on a scenic vista? b) Substantially damage scenic resources, including,
but not limited to, trees, rock outcroppings, and
historic buildings within a state scenic highway?
c) Substantially degrade the existing visual character or quality of the site and its surroundings?
d) Create a new source of substantial light or glare
which would adversely affect day or nighttime views in
the area?
Discussion
a-d: No impacts.

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2. Agriculture and Forestry Resources
Environmental Setting
The project area is not “Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency”, nor is it located near any Farmland.

Would the project:

Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Less Than
Significant
Impact
No Impact
a) Convert Prime Farmland, Unique Farmland, or
Farmland of Statewide Importance (Farmland), as
shown on the maps prepared pursuant to the
Farmland Mapping and Monitoring Program of the
California Resources Agency, to non-agricultural use?
b) Conflict with existing zoning for agricultural use or a Williamson Act contract?
c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code
section 12220)g)), timberland (as defined by Public
Resources Code section 4526), or timberland zoned
Timberland Production (as defined by Government
Code section 51104(g))?
d) Result in the loss of forest land or conversion of
forest land to non-forest use?
e) Involve other changes in the existing environment
which, due to their location or nature, could result in conversion of Farmland to non-agricultural use?
* In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997), prepared by the California Department of Conservation as an optional model for use in assessing impacts on agricultural and farmland.

Discussion
a-e: No impacts.

3. Air Quality
Environmental Setting
San Luis Obispo County is in non-attainment status for ozone (O3), respireable particulate matter (PM10) and vinyl chloride under the California Air Resource Board (CARB) standards. The County is in attainment status for all other applicable CARB standards.

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Arroyo Grande City CouncilJuly 25, 2023

Arroyo Grande City Council
July 25, 2023