Arroyo Grande City Council
December 12, 2023

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, December 12, 2023, 6:00 p.m.

In person at:

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

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

CLOSED SESSION:

None.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

ARROYO GRANDE LIONS CLUB

5. AGENDA REVIEW

5.a Closed Session Announcements
City Attorney Rosen will announce any reportable action from the following:

City Council Closed Session Meeting of November 28, 2023 a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT
Position: City Manager

5.b Ordinances read in title only
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

6. SPECIAL PRESENTATIONS

6.a Introduction of New Employee, Julie Hawkins, Deputy City Clerk/Communications Coordinator
(MATSON)

6.b Interim City Manager Communications
(ROBESON)
Recommended Action:

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

7. CITY COUNCIL REPORTS
None.

Reports are made during the Second Council Meeting each month.

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

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

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

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

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

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

9.c Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
(VALENTINE)
Recommended Action:

Consider, receive, and file the FY 2023-24 First Quarter Financial Status Report; and approve fifteen Budget Adjustment Requests.

9.d Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges
(VALENTINE)
Recommended Action:
1) Receive and file the annual report of the receipt and use of water and sewer capacity and connection fees and charges, in compliance with Government Code Section 66013; 2) Determine that ratifying the annual report is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.e Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request
(ROBESON/VALENTINE)
Recommended Action:

Adopt a Resolution amending the Citywide Combined Salary Schedule and appropriate $4,000 from the General Fund for the balance of FY 2023-24, and direct Staff to take any steps necessary to otherwise ratify the salary change for the impacted employees

9.f Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)

(VALENTINE)
Recommended Action:
1) Adopt a Resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) during the fiscal year ending June 30, 2023 and 2) Determine that adopting a resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.)

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

Approve the minutes of the Regular City Council Meeting of November 28, 2023, as submitted.

9.h Consideration of Selection of Council Member Guthrie as Mayor Pro Tem for Calendar Year 2024
(MATSON)
Recommended Action:

Appoint Council Member Guthrie as the Mayor Pro Tem for the next one-year period, pursuant to Council policy.

9.i Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services
(SWEENEY)
Recommended Action:
1) Award a contract for street sweeping services to SP Maintenance, Inc. for the next 2 years in the amount of $442,440 ($221,220/year); 2) Authorize the City Manager to approve extensions for year 3, at $227,776, and year 4, at $234,332, upon favorable performance in the City Manager’s discretion; 3) Approve a budget amendment of $51,010 to address the anticipated budget deficit from the increase in contrast costs through the end of FY 2023- 24; and 4) Find that these services are exempt from the California Environmental Quality Act (CEQA) under the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.)

10. PUBLIC HEARINGS

10.a Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant–Steph Wald, Creek Lands Conservation
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving the proposed Conditional Use Permit and corresponding fee waiver; and 2) Determine that this project is categorically exempt per Section 15301,

15302 and 15304 of the CEQA Guidelines.

10.b Public Hearing to Consider Introduction of an Ordinance Amending Title 13 of the Arroyo Grande Municipal Code Regarding the Water Shortage Contingency Plan and Finding this Action Exempt from CEQA
(SWEENEY)
Recommended Action:
1) Introduce the Ordinance amending Section 13.07.030 (C)(2) of the Arroyo Grande Municipal Code regarding the WSCP; and 2) 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)).

11. OLD BUSINESS
None.

12. NEW BUSINESS

12.a Consideration of Appointment of City Manager and Approval of Employment Agreement (ROSEN)
Recommended Action:
1) Approve the negotiated Employment Agreement with Matthew J. Downing , to serve as Arroyo Grande’s City Manager, following the required oral report under the Brown Act and subject to any minor, non-substantive changes necessary for finalization; and 2) Find the action 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. (c)(2)-(3), 15378)

12.b Consideration of Preliminary Approval of Community Development Block Grant Projects for Year 2024 And Finding That This Action Is Exempt Under The California Environmental Quality Act, State Guidelines Section 15061
(PEDROTTI)
Recommended Action:

Conduct a public hearing and provide preliminary approval of proposed projects to be funded with the City’s allocation of Community Development Block Grant (CDBG) funds for the Year 2024, as shown in Table 1 below, and find that the preliminary approval of projects is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).

Final City approval of the CDBG allocation and projects will tentatively occur in March 2024.

12.c Discussion to Consider Waiving or Reimbursing Certain Building Permit Fees Related to Repair or Reconstruction of Homes Damaged by Flooding in 2023 Declared Local Emergencies
(PEDROTTI)
Recommended Action:
1) Authorize the City Manager to take all actions necessary to approve waivers for 50% of the total amount of demolition, building permit, and inspection fees, for homes that were red or yellow tagged and thus damaged due to flooding occurring in 2023 during the City’s

locally declared emergencies; 2) Find the public purpose contained within this Staff Report supports the contemplated waivers; and 3) Determine that the discussion item is not a project subject to the California Environmental Quality Act (“CEQA”) because it has not 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.)

12.d Review and Approve Council Appointments to Regional and Local Boards and Committees
(MATSON)
Recommended Action:

Review the current list of appointments to those regional and local boards, commissions, and committees with Council representation, and: 1) Update the list of appointments and meeting information, maintain current Council assignments for the remaining boards, commissions, and committees, and reappoint Council members for the next one-year period, or 2) Update the list of appointments and meeting information for the remaining boards, commissions, and committees, reassign and approve new Council appointments to any of the regional and local boards and committees as desired; 3) Direct the City Clerk to update Fair Political Practices Commission (FPPC) Form 806 (Agency Report of Public Official Appointments) for posting on the City website; and 4) Direct staff to work with CCCE on a revised MOU, if necessary.

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

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

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

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

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Cash Disbursement Ratification DATE: December 12, 2023
SUMMARY OF ACTION:

Review and ratify cash disbursements for the period of November 1 through November 15, 2023.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $ 1,449,093.28 fiscal impact for the period of November 1 through November 15, 2023, that includes the following items:
 Accounts Payable Checks $ 982,334.49
 Payroll & Benefit Checks $ 466,758.79
RECOMMENDATION:
1) Ratify the attached listing of cash disbursements for the period of November 1 through November 15, 2023; 2) Determine that ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) BACKGROUND:

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

Item 9.a.

City Council
Consideration of Cash Disbursement Ratification
December 12, 2023

ANALYSIS OF ISSUES:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2023-24 budget.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

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

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

Ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. November 1 through November 15, 2023 – Accounts Payable Check Register

2. November 3, 2023 – Payroll & Benefit Check Register

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name1 11/03/2023 299250 $ 36.00 WATER SAMPLES-MAIN SHUTDOWN 640.4710.5310 ABALONE COAST ANALYTICAL INC2 11/03/2023 299251 35,190.36 FY23/24 INSTALLMENT#1-ANIMAL SHELTER 218.4101.5321 ANIMAL SERVICES3 11/03/2023 299252 61.31 PURCHASE WATER METERS & REPLACEMENT PARTS 640.4712.5611 AQUA-METRIC SALES CO(DBA)4 11/03/2023 299253 38.77 BATTERIES 640.4712.5255 ARROYO GRANDE HOME & GARDEN5 11/03/2023 299253 19.47 WD-40, ELECTRIC BOX COVER 010.4430.5605 ARROYO GRANDE HOME & GARDEN6 11/03/2023 299254 87.58 12' 2 7/8" PIPE 220.4303.5613 BACKYARD IMPROVEMENT CTR7 11/03/2023 299255 102.00 SOFTBALL SCOREKEEPER- 6 GAMES 010.4424.5352 KILI BOYD SR8 11/03/2023 299255 51.00 SOFTBALL SCOREKEEPER- 3 GAMES 010.4424.5352 KILI BOYD SR9 11/03/2023 299256 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 WILLIAM BRUCE10 11/03/2023 299257 150.00 TRAFFIC SAFETY SUMMIT- 11/7-11/8 PER DIEM 010.4209.5501 JEREMY BURNS11 11/03/2023 299258 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 GRISELDA CARDENAS12 11/03/2023 299259 110.39 PD-4621 BATTERY 010.4204.5601 CARQUEST AUTO PARTS13 11/03/2023 299259 160.97 BATTERY FOR PW ADMIN TRUCK 010.4307.5601 CARQUEST AUTO PARTS14 11/03/2023 299260 59.73 ACCT#170564101 PW TV 010.4307.5303 CHARTER COMMUNICATIONS15 11/03/2023 299261 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 SARAH CONLEY16 11/03/2023 299262 11,507.80 FEDERALIZATION OF SWINGING BRIDGE PROJECT 350.5679.7501 CONSOR NORTH AMERICA INC17 11/03/2023 299262 17,122.79 DESIGN & ENVIRONMENTAL FOR TRAFFIC WY BRIDGE 350.5679.7501 CONSOR NORTH AMERICA INC18 11/03/2023 299263 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 ZABRINA COX19 11/03/2023 299264 2,730.25 UNIFORMS-MODIFIED DUTY BUCKLES 010.4203.5272 CREATIVE CASTING20 11/03/2023 299265 3,426.41 (1) EACH GAMMA XL PUMP 640.4711.5603 D AND H WATER SYSTEMS INC21 11/03/2023 299266 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MIGUEL DELGADO22 11/03/2023 299267 225.00 CITY HALL ELEVATOR STATE INSPECTION 010.4213.5303 DEPT OF INDUSTRIAL RELATIONS23 11/03/2023 299268 50.00 PARK DEPOSIT REFUND-RANCHO GRA 010.0000.2206 LAUREN EDWARDS24 11/03/2023 299269 150.00 TRAFFIC SAFETY SUMMIT- 11/7-11/8 PER DIEM 010.4209.5501 ALEJANDRO ESTRADA25 11/03/2023 299270 394.68 SEWER PLUG 612.4610.5610 FAMCON PIPE AND SUPPLY INC26 11/03/2023 299270 113.69 METER WASHERS 640.4712.5610 FAMCON PIPE AND SUPPLY INC27 11/03/2023 299270 3,736.59 FIRE HYDRANT 640.4712.5610 FAMCON PIPE AND SUPPLY INC28 11/03/2023 299271 70.00 PD-4609 TIRE MOUNTING & BALANCING 010.4203.5601 FIGUEROA'S TIRES29 11/03/2023 299271 285.98 PW-71 TIRE 612.4610.5601 FIGUEROA'S TIRES30 11/03/2023 299272 41.86 DEADBOLT, 3 KEYS 010.4213.5604 FRANK'S LOCK & KEY31 11/03/2023 299272 9.16 KEYS 010.4213.5604 FRANK'S LOCK & KEY32 11/03/2023 299273 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 JAMES GIN33 11/03/2023 299274 106.08 PORTABLE TOILET RENTAL- 9/21-10/18 220.4303.5552 HARVEY'S HONEY HUTS34 11/03/2023 299275 70.69 (20) WATER METER GASKETS 640.4712.5610 ICONIX WATERWORKS (US) INC35 11/03/2023 299275 317.55 (50) GASKETS 640.4712.5610 ICONIX WATERWORKS (US) INC36 11/03/2023 299275 (317.55) CREDIT RETURN-(50) GASKETS 640.4712.5610 ICONIX WATERWORKS (US) INC37 11/03/2023 299276 212.03 (3) 5 GALL FIELD PAINT 010.4430.5274 KELLY-MOORE PAINTS

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name38 11/03/2023 299277 $ 62.00 BASKETBALL SCORER- 4 GAMES X $15.50 010.4424.5352 JHADE LA PAZ39 11/03/2023 299277 186.00 BASKETBALL SCOREKEEPER-12 GAMES X $15.50 010.4424.5352 JHADE LA PAZ40 11/03/2023 299278 39.11 (4) DRAWER LOCKS 010.4213.5604 MINER'S ACE HARDWARE, INC41 11/03/2023 299278 26.06 (4) LIGHT BULBS 010.4213.5604 MINER'S ACE HARDWARE, INC42 11/03/2023 299278 41.31 GOPHER & MOLE TRAP SET 010.4420.5605 MINER'S ACE HARDWARE, INC43 11/03/2023 299278 258.56 (4) AQUAPHALT ASPHALT PATCH 220.4303.5613 MINER'S ACE HARDWARE, INC44 11/03/2023 299278 1.27 FASTENERS 010.4420.5605 MINER'S ACE HARDWARE, INC45 11/03/2023 299278 8.60 (2) KEYS 010.4420.5605 MINER'S ACE HARDWARE, INC46 11/03/2023 299278 45.22 BUCKET & LID, GOPHER REPELLENT 010.4420.5605 MINER'S ACE HARDWARE, INC47 11/03/2023 299278 258.56 (4) AQUAPHALT ASPHALT PATCH 220.4303.5613 MINER'S ACE HARDWARE, INC48 11/03/2023 299278 92.38 CLEANER, SCREWDRIVER SET, OUTLET 010.4430.5605 MINER'S ACE HARDWARE, INC49 11/03/2023 299278 59.12 PAINT FOR SAMPLE STATIONS 640.4712.5610 MINER'S ACE HARDWARE, INC50 11/03/2023 299278 33.59 PW10-SCALE & CONTAINER FOR WELLS 640.4711.5603 MINER'S ACE HARDWARE, INC51 11/03/2023 299278 32.58 (2) LIGHT BULBS, OUTLET COVER 010.4430.5605 MINER'S ACE HARDWARE, INC52 11/03/2023 299278 75.37 PLIERS, WRENCH, STOP VALVES, SUPPLY LINE 010.4213.5604 MINER'S ACE HARDWARE, INC53 11/03/2023 299278 7.53 METAL CUTTING WHEEL 220.4303.5613 MINER'S ACE HARDWARE, INC54 11/03/2023 299278 113.08 FAUCET, LIGHT BULBS 010.4213.5604 MINER'S ACE HARDWARE, INC55 11/03/2023 299278 40.91 PRUNING BLADE, RECIPROCATING SAW BLADE 220.4303.5613 MINER'S ACE HARDWARE, INC56 11/03/2023 299278 47.39 DRILL BITS 010.4305.5603 MINER'S ACE HARDWARE, INC57 11/03/2023 299279 16,985.96 COMPREHENSIVE GENERAL PLAN UPDATE 010.4130.5303 MINTIER HARNISH LP58 11/03/2023 299280 297.34 PD-4605 REPAIR 010.4203.5601 MULLAHEY FORD59 11/03/2023 299281 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 ROBERT NAVARRO60 11/03/2023 299282 124.23 MISC OFFICE SUPPLIES 010.4120.5201 ODP BUSINESS SOLUTIONS LLC61 11/03/2023 299282 8.30 COPY PAPER 010.4102.5201 ODP BUSINESS SOLUTIONS LLC62 11/03/2023 299282 10.55 MISC OFFICE SUPPLIES 010.4120.5201 ODP BUSINESS SOLUTIONS LLC63 11/03/2023 299283 1,652.00 CASH FOR GRASS- 1652 SQ FT 226.4306.5554 RICK PHILLIPS64 11/03/2023 299284 200.00 09/23 PARKING CITATION PROCESS 010.4204.5303 PHOENIX GROUP65 11/03/2023 299285 34.00 REFUND BUSINESS LICENSE 010.0000.4050 PLANTIE ROX FLORAL66 11/03/2023 299286 24.13 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY67 11/03/2023 299286 45.63 WOMENS CLUB MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY68 11/03/2023 299286 27.63 PD MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY69 11/03/2023 299286 29.88 REC DEPT MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY70 11/03/2023 299286 15.95 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY71 11/03/2023 299286 23.54 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY72 11/03/2023 299286 34.76 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY73 11/03/2023 299286 22.22 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY74 11/03/2023 299286 22.22 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name75 11/03/2023 299286 $ 31.68 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY76 11/03/2023 299286 44.35 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY77 11/03/2023 299286 34.95 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY78 11/03/2023 299286 23.54 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY79 11/03/2023 299286 54.26 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY80 11/03/2023 299286 22.22 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY81 11/03/2023 299286 22.22 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY82 11/03/2023 299286 31.68 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY83 11/03/2023 299286 44.35 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY84 11/03/2023 299287 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 GENE REBOLLAR85 11/03/2023 299287 133.00 REFUND PARK RENTAL & BOUNCE HOUSE 010.0000.4354 GENE REBOLLAR86 11/03/2023 299288 2,615.75 SPEER LAWMAN 9MM 115GR TMJ 010.4204.5255 SAN DIEGO POLICE EQUIPMENT CO87 11/03/2023 299289 1,124.00 PW71 FORKLIFT TIRES 220.4303.5603 SANTA MARIA TIRE, INC88 11/03/2023 299290 34.00 SOFTBALL SCORER- 2 GAMES X $17 010.4424.5352 MARTINA SARMIENTO89 11/03/2023 299290 85.00 SOFTBALL SCORER-5 GAMES X $17 010.4424.5352 MARTINA SARMIENTO90 11/03/2023 299291 477.07 RESTOCK-RISER EXT, REDUCING TEE, ELBOW 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC91 11/03/2023 299291 74.06 VILLAGE IRRIG PARTS-DRIP ZONE KIT 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC92 11/03/2023 299291 157.93 VILLAGE IRRIG PARTS-PIPE CUTTER, VALVE 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC93 11/03/2023 299291 59.78 VILLAGE IRRIG PARTS-ADAPTERS, COUPLING 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC94 11/03/2023 299291 107.65 VALVE BOX, DRIP CONTROL KIT 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC95 11/03/2023 299291 97.28 COUPLING, ADAPTER, THREAD SEAL 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC96 11/03/2023 299291 22.57 STROTHER IRRIG PARTS-ANTI-SIPHON 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC97 11/03/2023 299292 132.00 09/23 PARKING CITATION REV DIST 010.0000.4203 SLO COUNTY AUDITOR-CONTROLLER98 11/03/2023 299293 16.42 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS99 11/03/2023 299293 20.15 GAS SERVICES-211 VERNON 010.4145.5401 SOCALGAS100 11/03/2023 299293 14.58 GAS SERVICES-215 E BRANCH 010.4145.5401 SOCALGAS101 11/03/2023 299293 30.68 GAS SERVICES-111 S MASON 010.4145.5401 SOCALGAS102 11/03/2023 299294 195,202.69 09/23 SEWER SVCS COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST103 11/03/2023 299294 17,325.00 09/23 (7) SEWER SVC HOOKUPS 760.0000.2305 SOUTH SLO COUNTY SANIT DIST104 11/03/2023 299294 8.81 CITY ACCT-215 E BRANCH 010.4145.5401 SOUTH SLO COUNTY SANIT DIST105 11/03/2023 299294 8.81 CITY ACCT-300 E BRANCH 010.4145.5401 SOUTH SLO COUNTY SANIT DIST106 11/03/2023 299294 8.81 CITY ACCT-211 VERNON ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST 107 11/03/2023 299294 8.81 CITY ACCT-RANCHO GRANDE PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST108 11/03/2023 299294 8.81 CITY ACCT-STROTHER PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST109 11/03/2023 299294 8.81 CITY ACCT-SHORT ST RESTROOMS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST 110 11/03/2023 299294 8.81 CITY ACCT-ELM ST PARK 010.4145.5401 SOUTH SLO COUNTY SANIT DIST111 11/03/2023 299294 8.81 CITY ACCT-203 N RENA 010.4145.5401 SOUTH SLO COUNTY SANIT DIST

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name112 11/03/2023 299294 $ 8.81 CITY ACCT-1221 ASH ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST113 11/03/2023 299294 8.81 CITY ACCT-SOTO SPORTS COMPLEX 010.4145.5401 SOUTH SLO COUNTY SANIT DIST114 11/03/2023 299294 8.81 CITY ACCT-127 SHORT ST 010.4145.5401 SOUTH SLO COUNTY SANIT DIST115 11/03/2023 299294 8.81 CITY ACCT-211 N HALCYON RD 010.4145.5401 SOUTH SLO COUNTY SANIT DIST116 11/03/2023 299295 104.49 PW-56 OIL CHG 010.4420.5601 TOM'S AUTO SERVICE117 11/03/2023 299295 188.02 PD-4605 REPAIR 010.4203.5601 TOM'S AUTO SERVICE118 11/03/2023 299296 1,600.00 ENTERPRISE ERP FINANCIAL MGMT 350.5453.7301 TYLER TECHNOLOGIES INC119 11/03/2023 299297 1,073.33 PAYROLL FOR:W/E 10/22 PW HELP 010.4420.5303 UNITED STAFFING ASSOC.120 11/03/2023 299298 19,902.48 09/23 TBID SOCIAL MEDIA MARKET 240.4150.5301 VERDIN MARKETING INK121 11/03/2023 299299 28,421.58 07/23 TMD ASSESSMENT REMITTANCE 761.0000.2007 VISIT SLO CAL122 11/03/2023 299299 (568.43) 07/23 CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL123 11/03/2023 299299 19,023.27 08/23 TMD ASSESSMENT REMITTANCE 761.0000.2007 VISIT SLO CAL124 11/03/2023 299299 (380.47) 08/23 CITY ADMIN FEE 010.0000.4771 VISIT SLO CAL125 11/03/2023 299300 4,195.04 FOG PROGRAM ADMINISTRATION & INSPECTION 612.4610.5303 WALLACE GROUP A CALIF CORP126 11/03/2023 299301 614.05 RICOH COPIER LEASE PYMT 010.4201.5803 WELLS FARGO VENDOR FINANCIAL127 11/03/2023 299302 292.09 HALCYON & GRAND-REPLACE RED BALL 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC128 11/03/2023 299302 145.00 TRAFFIC WAY & FAIR OAKS-ADJUST CAMERA 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC129 11/03/2023 299302 229.74 GRAND & ELM-REPLACE 200 CARD 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC130 11/03/2023 299303 337.77 UB Refund Cst #00029147 640.0000.2301 CAL WEST131 11/03/2023 299304 58.99 UB Refund Cst #00029200 640.0000.2301 CAL WEST132 11/03/2023 299305 95.89 UB Refund Cst #00025807 640.0000.2301 CALVIN HARRIS133 11/03/2023 299306 126.06 UB Refund Cst #00029090 640.0000.2301 REAL PROPERTY MGMT134 11/03/2023 299307 93.72 UB Refund Cst #00027483 640.0000.2301 JOSHUA SIMPSON135 11/03/2023 299308 47.47 UB Refund Cst #00005574 640.0000.2301 MR. & MRS. CURT SMARIO136 11/03/2023 299309 184.62 UB Refund Cst #00028874 640.0000.2301 ASHLEY SMITH137 11/08/2023 299310 60,251.27 FEDERAL WITHHOLDING: Payment 011.0000.2104 CITY OF ARROYO GRANDE138 11/08/2023 299310 49,702.56 SOCIAL SECURITY: Payment 011.0000.2105 CITY OF ARROYO GRANDE139 11/08/2023 299310 16,071.36 MEDICARE: Payment 011.0000.2105 CITY OF ARROYO GRANDE140 11/08/2023 299311 3,638.35 CASDI: Payment 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT141 11/08/2023 299311 23,679.63 STATE WITHHOLDING: Payment 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT142 11/08/2023 299312 458.76 DEPT OF CHILD SUPPORT SERVICES: Payment 011.0000.2114 CA STATE DISBURSEMENT UNIT143 11/08/2023 299313 7,778.96 DENTAL INSURANCE: Payment 011.0000.2110 DELTA DENTAL144 11/08/2023 299313 153.28 DENTAL INSURANCE: Payment 011.0000.2110 DELTA DENTAL145 11/08/2023 299313 114.96 MISC ADJUSTMENTS 011.0000.2110 DELTA DENTAL146 11/08/2023 299313 2,222.56 11/23 DENTAL PREMIUM-RETIREES 010.4099.5132 DELTA DENTAL147 11/08/2023 299314 4,083.91 DEFERRED COMPENSATION - EE %: Payment 011.0000.2117 ICMA RETIREMENT CORP148 11/08/2023 299314 30,562.63 DEFERRED COMPENSATION - EE: Payment 011.0000.2117 ICMA RETIREMENT CORP

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name149 11/08/2023 299314 $ 875.00 DEFERRED COMPENSATION - ER: Payment 011.0000.2117 ICMA RETIREMENT CORP150 11/08/2023 299314 310.00 ROTH - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP151 11/08/2023 299314 187.64 ROTH % - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP152 11/08/2023 299315 2,431.32 HMO ANTHEM TRADITIONAL - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED153 11/08/2023 299315 4,200.00 PORAC MED INSURANCE: Payment 011.0000.2109 PERS - ACTIVE MED154 11/08/2023 299315 13,918.64 PPO PERS GOLD - MANAGEMENT: Payment 011.0000.2109 PERS - ACTIVE MED155 11/08/2023 299315 18,372.58 PPO PERS GOLD - POLICE: Payment 011.0000.2109 PERS - ACTIVE MED156 11/08/2023 299315 16,006.45 PPO PERS GOLD - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED157 11/08/2023 299315 1,977.86 BLUE SHIELD TRIO HMO - MGMT: Payment 011.0000.2109 PERS - ACTIVE MED158 11/08/2023 299315 1,977.86 BLUE SHIELD TRIO HMO - POLICE: Payment 011.0000.2109 PERS - ACTIVE MED159 11/08/2023 299315 18,412.24 HMO-UNITED HEALTHCARE-MGMT: Payment 011.0000.2109 PERS - ACTIVE MED160 11/08/2023 299315 8,095.06 HMO UNITED HEALTHCARE-POLICE: Payment 011.0000.2109 PERS - ACTIVE MED161 11/08/2023 299315 18,827.17 HMO UNITED HEALTHCARE-SEIU: Payment 011.0000.2109 PERS - ACTIVE MED162 11/08/2023 299315 1,977.86 BLUE SHIELD TRIO HMO - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED163 11/08/2023 299315 1,809.42 PERS GOLD - FIRE MANAGEMENT: Payment 011.0000.2109 PERS - ACTIVE MED164 11/08/2023 299315 4,668.08 PPO PERS PLATINUM - FIRE: Payment 011.0000.2109 PERS - ACTIVE MED165 11/08/2023 299315 11,830.84 PPO PERS GOLD - FIRE: Payment 011.0000.2109 PERS - ACTIVE MED166 11/08/2023 299315 1,521.44 BLUE SHIELD TRIO HMO - FIRE: Payment 011.0000.2109 PERS - ACTIVE MED167 11/08/2023 299315 7,777.58 HMO UNITED HEALTHCARE-FIRE: Payment 011.0000.2109 PERS - ACTIVE MED168 11/08/2023 299315 6,190.32 HMO-UNITED HEALTH FIRE-MGMT: Payment 011.0000.2109 PERS - ACTIVE MED169 11/08/2023 299315 337.71 ACTIVE HEALTH ADMIN FEE 010.4145.5131 PERS - ACTIVE MED170 11/08/2023 299315 106.52 ACTIVE FIRE HEALTH ADMIN FEE 010.0000.1111 PERS - ACTIVE MED171 11/08/2023 299315 6,594.13 RETIREE HEALTH INSURANCE 010.4099.5136 PERS - ACTIVE MED172 11/08/2023 299315 769.74 RETIREE HEALTH INSURANCE 010.0000.1111 PERS - ACTIVE MED173 11/08/2023 299315 610.73 RETIREE HEALTH INSURANCE 220.4303.5136 PERS - ACTIVE MED174 11/08/2023 299315 (0.01) ROUNDING DIFFERENCE 010.0000.4818 PERS - ACTIVE MED175 11/08/2023 299316 2,063.44 ACTIVE HEALTH INS-PT NONPERS 011.0000.2109 PERS - ACTIVE MED176 11/08/2023 299316 6.60 ACTIVE HEALTH INS ADMIN FEE 010.4145.5131 PERS - ACTIVE MED177 11/08/2023 299317 42,196.97 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT178 11/08/2023 299317 59,838.27 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT179 11/08/2023 299317 1,492.60 PERS Employer Pick Up: Payment 011.0000.2106 PERS - RETIREMENT180 11/08/2023 299317 (0.04) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT181 11/08/2023 299318 1,017.82 STANDARD INSURANCE COMPANY: Payment 011.0000.2113 STANDARD INSURANCE CO182 11/08/2023 299318 484.34 STANDARD INSURANCE COMPANY: Payment 011.0000.2113 STANDARD INSURANCE CO183 11/08/2023 299318 1,710.99 STANDARD LTD/STD INSURANCE: Payment 011.0000.2113 STANDARD INSURANCE CO184 11/08/2023 299319 814.26 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA185 11/08/2023 299320 2,203.65 VISION CARE INSURANCE: Payment 011.0000.2119 VISION SERVICE PLAN

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name186 11/08/2023 299320 $ 588.71 11/23 VISION PREMIUM-RETIREES 010.4099.5133 VISION SERVICE PLAN187 11/09/2023 299321 51.33 NOTEBOOKS, DRY ERASE BOARD 010.4130.5201 AMAZON CAPITAL SERVICES188 11/09/2023 299321 38.98 WIRELESS MOUSE & MOUSEPAD 010.4307.5201 AMAZON CAPITAL SERVICES189 11/09/2023 299321 107.70 SOLAR FLAGPOLE LIGHTS 010.4213.5604 AMAZON CAPITAL SERVICES190 11/09/2023 299321 13.46 WALL CHARGER FOR OFFICE 010.4420.5255 AMAZON CAPITAL SERVICES191 11/09/2023 299321 1,071.30 TOILET PAPER 010.4213.5604 AMAZON CAPITAL SERVICES192 11/09/2023 299321 140.06 VACUUM CLEANER-CITY HALL 010.4213.5604 AMAZON CAPITAL SERVICES193 11/09/2023 299321 271.15 WYPALLS CLEANING CLOTHS 220.4303.5255 AMAZON CAPITAL SERVICES194 11/09/2023 299321 32.13 FIRST AID KIT & IBUPROFEN 220.4303.5255 AMAZON CAPITAL SERVICES195 11/09/2023 299321 43.08 (16) 9 VOLT BATTERIES 010.4420.5255 AMAZON CAPITAL SERVICES196 11/09/2023 299321 (7.53) CREDIT-RETURN CALCULATOR 220.4303.5201 AMAZON CAPITAL SERVICES197 11/09/2023 299322 167.92 11/23 COMMUNICATIONS MAINT 010.4204.5606 APPLIED TECHNOLOGY GROUP INC198 11/09/2023 299323 560.00 10/23 VILLAGE WATERING 010.4420.5605 ARROYO GRANDE IN BLOOM INC199 11/09/2023 299324 453.31 2024 LICENSE FEE 010.4003.5319 ASCAP200 11/09/2023 299325 316.00 ASCE MEMBERSHIP RENEWAL JILL MCPEEK 010.4307.5503 ASCE MEMBERSHIP201 11/09/2023 299326 26.98 BAN#9391033180 010.4145.5403 AT&T202 11/09/2023 299326 177.71 BAN#9391033184 010.4201.5403 AT&T203 11/09/2023 299326 80.94 BAN#9391033187 010.4201.5403 AT&T204 11/09/2023 299326 34.16 BAN#9391033183 010.4201.5403 AT&T205 11/09/2023 299326 26.98 BAN#9391033186 010.4145.5403 AT&T206 11/09/2023 299327 4,225.68 REIMBURSE FOR PROP TAXES 07-192-067 FY 23/24 751.4555.5551 B & M INVESTMENTS207 11/09/2023 299327 205.02 REIMBURSE FOR PROP TAXES 07-192-051 FY 23/24 751.4555.5551 B & M INVESTMENTS208 11/09/2023 299328 200.00 MONTHLY DO INSPECTION-PW FUEL ISLAND 010.4305.5303 B & T SVC STN CONTRACTORS, INC209 11/09/2023 299329 60.00 BUSINESS CLASS-COLLECTIONS INTO CASH 010.4424.5351 JAMIE BECK 210 11/09/2023 299330 72.86 GASKET FOR KABOTA TILLER 010.4420.5603 BERCHTOLD EQUIPMENT CO211 11/09/2023 299331 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 MEGAN BEST212 11/09/2023 299332 83.02 BUSINESS CARDS 010.4201.5201 BOONE PRINTING & GRAPHICS INC213 11/09/2023 299332 758.51 ADMIN SVCS ENVELOPES 010.4102.5255 BOONE PRINTING & GRAPHICS INC 214 11/09/2023 299333 1,526.00 ARTS & CRAFTS CLUB WINTER SESSION 010.4424.5351 KENDRA BOWLING215 11/09/2023 299334 47.14 STREET SIGN-HEATH RETIREMENT 010.4301.5255 BRAND CREATIVE216 11/09/2023 299334 47.14 STREET SIGN-HEATH RETIREMENT 010.4307.5201 BRAND CREATIVE217 11/09/2023 299334 47.14 STREET SIGN-HEATH RETIREMENT 220.4303.5255 BRAND CREATIVE218 11/09/2023 299334 47.14 STREET SIGN-HEATH RETIREMENT 640.4712.5255 BRAND CREATIVE219 11/09/2023 299335 500.00 10/23 VARIOUS CITY GOVERNMENT BUILDINGS 010.4201.5615 BRENDLER JANITORIAL SERVICE220 11/09/2023 299335 125.00 10/23 PD JANITORIAL SVC 010.4213.5615 BRENDLER JANITORIAL SERVICE221 11/09/2023 299335 725.00 10/23 REC JANITORIAL SVC 010.4213.5615 BRENDLER JANITORIAL SERVICE222 11/09/2023 299335 285.00 10/23 WOMENS CLUB JANITORIAL S 010.4213.5615 BRENDLER JANITORIAL SERVICE

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name223 11/09/2023 299335 $ 450.00 WOMENS CLUB EXTRA CLEANING 010.4213.5615 BRENDLER JANITORIAL SERVICE224 11/09/2023 299336 5.37 PAINT BRUSHES 640.4712.5610 BRISCO MILL & LUMBER YARD225 11/09/2023 299336 39.86 PHONE DASH KIT 612.4610.5601 BRISCO MILL & LUMBER YARD226 11/09/2023 299336 26.92 CLEANER 612.4610.5610 BRISCO MILL & LUMBER YARD227 11/09/2023 299337 372.00 LIVESCAN/FINGERPRINT- IN/OUT 010.4204.5329 CA ST DEPT OF JUSTICE228 11/09/2023 299338 (10.78) CORE RETURN 220.4303.5601 CARQUEST AUTO PARTS229 11/09/2023 299338 3.12 GOPHER MACHINE-FUEL LINE, HOSE CLAMP 010.4420.5603 CARQUEST AUTO PARTS230 11/09/2023 299338 21.54 PW17 -27FT RATCHET TIEDOWN 220.4303.5601 CARQUEST AUTO PARTS231 11/09/2023 299338 158.60 PW-17 ALTERNATOR 010.4420.5601 CARQUEST AUTO PARTS232 11/09/2023 299339 65.00 10/23 REIMBURSE JIUJITSU 010.4203.5501 JASON CASTILLO233 11/09/2023 299340 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 ELISA CECCHI234 11/09/2023 299341 199.98 ACCT#170562001 PD INTERNET 010.4201.5403 CHARTER COMMUNICATIONS235 11/09/2023 299342 615.00 TRANSPORT EXCAVATOR FROM EQUESTRIAN TO ASH 220.4303.5552 CITY MOTORS TOWING, INC 236 11/09/2023 299343 284.25 GREEN WASTE DUMP 220.4303.5307 COLD CANYON LANDFILL, INC237 11/09/2023 299344 704.00 TAI CHI FALL SESSION 1 010.4424.5351 SHIRLEY J CROSS238 11/09/2023 299345 420.00 10/23 SR FITNESS 010.4424.5351 GAYLE CUDDY239 11/09/2023 299346 235.90 10/23 LINE DANCING CLASS 010.4424.5351 ZOE DASCALOS240 11/09/2023 299347 65.00 10/23 REIMBURSE JIUJITSU 010.4203.5501 ANTHONY ESTRADA241 11/09/2023 299348 68.00 4607 - TIRE MOUNTING AND BALANCING 010.4203.5601 FIGUEROA'S TIRES242 11/09/2023 299348 68.00 4608 - TIRE MOUNTING AND BALANCING 010.4203.5601 FIGUEROA'S TIRES243 11/09/2023 299349 200.00 REFUND-WOMENS CLUB DEPOSIT 010.0000.2206 FILIPINO WOMEN'S CLUB OF SLO244 11/09/2023 299349 800.00 REFUND WOMENS CLUB DEPOSIT 010.0000.2206 FILIPINO WOMEN'S CLUB OF SLO245 11/09/2023 299350 1,568.00 10/23 BRIDGE GAMES & CLASSES 010.4424.5351 FIVE CITIES DUPLICATE BRIDGE246 11/09/2023 299351 200.00 WASHING MACHINE REBATE 226.4306.5554 JACK GABRIEL247 11/09/2023 299352 3,045.43 GIS SERVICES 010.4301.5303 GHD INC248 11/09/2023 299353 165.24 11/23 AETNA RESOURCES EAP 010.4145.5147 HEALTH AND HUMAN RESOURCE CTR249 11/09/2023 299353 41.31 11/23 AETNA RESOURCES EAP-FCFA 010.0000.1111 HEALTH AND HUMAN RESOURCE CTR250 11/09/2023 299354 1,055.09 3/4" CUSTOMER VALVES 640.4712.5610 ICONIX WATERWORKS (US) INC251 11/09/2023 299355 106.55 FUEL 010.4203.5608 JB DEWAR, INC252 11/09/2023 299355 5,247.53 1050 GALL DYED DIESEL 010.0000.1202 JB DEWAR, INC253 11/09/2023 299356 4,100.00 FIREMANS PARK TREE WORK 010.4420.5303 JTS INC254 11/09/2023 299357 235.90 10/23 LINE DANCING CLASS 010.4424.5351 KAYLYN KELLER255 11/09/2023 299358 755.81 (10) 5 GALL PAINT 010.4430.5605 KELLY-MOORE PAINTS256 11/09/2023 299359 57.02 (6) WORK GLOVES MECHANIC STYLE 612.4610.5255 KIMBALL MIDWEST(DBA)257 11/09/2023 299359 114.05 (6) WORK GLOVES MECHANIC STYLE 640.4712.5255 KIMBALL MIDWEST(DBA)258 11/09/2023 299360 50.00 10/29 PICKLEBALL HALLOWEEN EVENT PRIZES 010.4424.5351 MAUREEN LEWIS259 11/09/2023 299361 1,281.70 10/23 ZUMBA & BARRE 010.4424.5351 HEIDY MANGIARDI

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name260 11/09/2023 299362 $ 31.79 1/2 CU YD DG 220.4303.5613 MIER BROS LANDSCAPE PRODUCTS261 11/09/2023 299362 63.57 1 CU YD DG 220.4303.5613 MIER BROS LANDSCAPE PRODUCTS262 11/09/2023 299362 148.70 2 CU YDS BROWN BARK 010.4420.5605 MIER BROS LANDSCAPE PRODUCTS263 11/09/2023 299362 140.08 1/4 CU/YD SACK CONCRETE 640.4712.5610 MIER BROS LANDSCAPE PRODUCTS264 11/09/2023 299362 258.60 3/4 CU/YD - SACK CONCRETE 640.4712.5610 MIER BROS LANDSCAPE PRODUCTS265 11/09/2023 299363 47.57 SUPPLIES FOR PD HARVEST FESTIVAL 010.4203.5255 MINER'S ACE HARDWARE, INC266 11/09/2023 299363 226.22 SAW BLADE, LEVEL, (3) AQUAPHAL 220.4303.5613 MINER'S ACE HARDWARE, INC267 11/09/2023 299363 13.99 NITRILE GLOVES, WORK GLOVES 220.4303.5255 MINER'S ACE HARDWARE, INC268 11/09/2023 299363 91.52 MOP, BROOM, MOP REFILL 010.4430.5604 MINER'S ACE HARDWARE, INC269 11/09/2023 299363 77.22 CONNECTOR WIRE, STAPLER, PLUG WIRE 010.4430.5604 MINER'S ACE HARDWARE, INC270 11/09/2023 299363 93.48 EAR MUFF, LOPPER, SCREW HOOK, SLIP HOOK 010.4420.5605 MINER'S ACE HARDWARE, INC271 11/09/2023 299364 726.42 MOTION PICTURE LICENSING 3/23-3/24 010.4003.5319 MPLC272 11/09/2023 299365 184.80 10/23 YOGA IN THE PARK 010.4424.5351 NICCOLA NELSON273 11/09/2023 299366 72,957.21 CONCRETE BARRIER PARKLETS 220.4303.5255 PETERSEN MANUFACTURING CO.274 11/09/2023 299367 400.00 START CHANGE FOR TURKEY TROT 010.0000.1033 PETTY CASH275 11/09/2023 299368 1,409.25 PATROL FLEET - MOTOR COMMUNICATION EQUIPMENT 010.4203.5272 PVP COMMUNICATIONS, INC276 11/09/2023 299369 484.37 11/23 GRACE LANE LANDSCAPE MAINTENANCE 216.4460.5304 RAINSCAPE277 11/09/2023 299369 1,201.41 11/23 PARKSIDE LANDSCAPE MAINTENANCE 219.4460.5304 RAINSCAPE278 11/09/2023 299370 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 KRISTIN RANK279 11/09/2023 299370 50.00 PARK RENTAL REFUND-STROTHER 010.0000.4354 KRISTIN RANK280 11/09/2023 299371 65.34 COUNCIL CHAMBERS WATER 010.4213.5303 READYREFRESH BY NESTLE281 11/09/2023 299372 957.00 DEPT PHOTO & ID CARD PHOTOS 010.4201.5201 REFLECTIONS PHOTOGRAPHY282 11/09/2023 299373 49.91 REIMBURSE FOR VOLUNTEER 010.4424.5351 KELLY REYNOLDS283 11/09/2023 299374 736.00 CASH FOR GRASS- 736 SQFT 226.4306.5554 DAVID SHROCK284 11/09/2023 299375 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 CECILIO SINICO285 11/09/2023 299376 171.97 (2) STEEL SHOVELS 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC286 11/09/2023 299376 (22.57) CREDIT - HUNTER VALVE, TEFLON, MALE 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC287 11/09/2023 299377 202.38 DUMPSTERS -STROTHER 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC288 11/09/2023 299377 159.08 DUMPSTERS -PD 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC289 11/09/2023 299377 101.19 DUMPSTERS -PW RECYCLE 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC290 11/09/2023 299377 5.07 DUMPSTERS -COMM GARDEN GREEN WASTE 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC291 11/09/2023 299377 87.62 CITY HALL TRASH/RECYLING SVC 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC292 11/09/2023 299377 202.38 DUMPSTERS -RANCHO GRANDE PARK 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC 293 11/09/2023 299377 310.86 DUMPSTERS -FCFA 010.4213.5303 SOUTH COUNTY SANITARY SVC, INC294 11/09/2023 299378 689.22 OFFICE TONER FOR COLOR PRINTER 010.4421.5201 STAPLES295 11/09/2023 299379 107.00 CC PH PUBLIC ART 010.4002.5301 THE MCCLATCHY COMPANY LLC296 11/09/2023 299379 107.00 PC PH 316-330 S HALCYON RD 010.4130.5301 THE MCCLATCHY COMPANY LLC

CITY OF ARROYO GRANDE

CHECK LISTING
NOVEMBER 1 - NOVEMBER 15, 2023
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name297 11/09/2023 299379 $ 107.00 PC PH DCA IRRIGATED TURF 010.4130.5301 THE MCCLATCHY COMPANY LLC298 11/09/2023 299379 213.00 PC PH AG CREEK STREAM GAUGE MOD PROJECT 010.4130.5301 THE MCCLATCHY COMPANY LLC299 11/09/2023 299379 213.00 PC PH VETERINARY CLINIC 010.4130.5301 THE MCCLATCHY COMPANY LLC300 11/09/2023 299379 41.65 ORD SUMMARY- PURCHASING 010.4002.5301 THE MCCLATCHY COMPANY LLC301 11/09/2023 299379 36.55 ORD TALLY HO SPEED LIMIT 010.4002.5301 THE MCCLATCHY COMPANY LLC302 11/09/2023 299379 88.40 CC PH NOTICE NOYES WELL 010.4002.5301 THE MCCLATCHY COMPANY LLC303 11/09/2023 299379 28.90 ORD 723 SUMMARY- PURCHASING 010.4002.5301 THE MCCLATCHY COMPANY LLC304 11/09/2023 299379 29.75 ORD 724 SUMMARY TALLY HO SPEED LIMIT 010.4002.5301 THE MCCLATCHY COMPANY LLC305 11/09/2023 299380 286.15 4608 - REPAIR 010.4203.5601 TOM'S AUTO SERVICE306 11/09/2023 299381 75.00 10/23 INVESTIGATION SVCS 010.4204.5303 TRANSUNION RISK307 11/09/2023 299382 324.83 PW-79 WHEEL ASSMBLY, SCREW, NUTLOCK 010.4420.5603 TURF STAR, INC308 11/09/2023 299383 105.66 KONICA COPIER METER READ 10/23 010.4102.5602 ULTREX BUSINESS PRODUCTS (DBA)309 11/09/2023 299384 5,844.42 EXCAVATOR RENTAL-TALLY HO FEMA WORK 220.4303.5552 UNITED RENTALS INC310 11/09/2023 299385 928.28 PAYROLL FOR: WE 10/29- PW HELP 010.4420.5303 UNITED STAFFING ASSOC.311 11/09/2023 299386 166.40 10/23 ART CLASSES: PUNCH CARDS 010.4424.5351 PEGGY VALKO312 11/09/2023 299387 951.33 ACCT#208620661-00002 PD CELL PHONES 010.4201.5403 VERIZON WIRELESS313 11/09/2023 299388 1,635.00 SIGNAL MAINTENANCE SEPT 2023 (12 INTERSECTIONS) 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC314 11/09/2023 299389 294.47 SAFETY SUPPLIES-GLOVES, GLASSES 612.4610.5255 WINEMA INDUSTRIAL &315 11/09/2023 299389 294.47 SAFETY SUPPLIES-GLOVES, GLASSES 640.4712.5255 WINEMA INDUSTRIAL & $ 982,334.49

ATTACHMENT 2
.

General Fund 410,384.76 5101 Salaries Full time 274,954.34 Streets Fund 21,098.74 5101 Volunteer Employee Retirement - Sewer Fund 11,386.06 5102 Salaries Part-Time - PPT 7,276.27 Water Fund 23,889.23 5103 Salaries Part-Time - TPT 4,470.53 466,758.79 5105 Salaries OverTime 18,645.36
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,056.40
5108 Holiday Pay 7,923.68
5109 Sick Pay 6,654.01
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development 1,164.16 5112 Sick Leave Buyback - Police 15,037.04 5113 Vacation Pay 4,528.66
Public Works - Maintenance 1,006.10 5114 Comp Pay 756.87 Public Works - Enterprise 1,438.06 5115 Annual Leave Pay 9,958.34 Recreation - Administration - 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 40,461.78 Children In Motion - 5122 Social Security 24,014.63
5123 PARS Retirement 162.86 18,645.36
5126 State Disability Ins. 2,983.00
5127 Deferred Compensation 725.00
5131 Health Insurance 53,407.96
5132 Dental Insurance 3,103.92
5133 Vision Insurance 892.32
5134 Life Insurance 388.64
5135 Long Term Disability 1,172.97
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance 637.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 223.75
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,210.00
466,758.79
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
10/13/2023 - 10/26/2023
11/3/2023

BY FUND BY ACCOUNT

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Statement of Investment Deposits DATE: December 12, 2023
SUMMARY OF ACTION:

Presentation of the City’s investment deposits as of October 31, 2023.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no funding impact to the City related to these reports. However, the City does receive interest revenue based on the interest rate of the investments. Little to no future staff time is projected.

RECOMMENDATION:
1) Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of October 31, 2023, as required by Government Code Section 53646(b); 2) Determine that receiving the report of investment deposits is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) BACKGROUND:

The Administrative Services department has historically submitted to the City Council a monthly report, providing the following information:

1. Type of investment.

2. Financial institution (bank, savings and loan, broker, etc).

3. Date of maturity.

4. Principal amount.

5. Rate of interest.

6. Current market value for all securities having a maturity of more than 12 months.

7. Relationship of the monthly report to the annual statement of investment policy.

City Council
Consideration of Statement of Investment Deposits
December 12, 2023

Item 9.b.

ANALYSIS OF ISSUES:

This report represents the City’s investments as of October 31, 2023. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of October 31, 2023, the investment portfolio was in compliance with all State laws and the City’s investment policy.

ALTERNATIVES:

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

1. Approve staff’s recommendation to receive and file the attached report listing the investment deposits;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

ADVANTAGES:

Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

DISADVANTAGES:

Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversifications of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent.

ENVIRONMENTAL REVIEW:

The Statement of Investment Deposits is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)”
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. Portfolio Summary: October 31, 2023

ATTACHMENT 1
300 E. Branch St.

Arroyo Grande, CA 93420
Phone: (805) 473-5400

CITY OF ARROYO GRANDE
Portfolio Summary
October 31, 2023
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Local Agency Investment Fund $ 15,629,748.45 15,629,748.45 $ 3.670% 48.775% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 0.100% February 21, 2023 12 mos February 21, 2024 0.777% BMW Bank North America 249,000.00 249,000.00 0.500% July 16, 2021 36 mos July 16, 2024 0.777% Mountain America Federal Credit Union 249,000.00 249,000.00 4.750% October 14, 2022 24 mos October 15, 2024 0.777% Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 0.771% Wells Fargo Bank 249,000.00 249,000.00 4.600% October 28, 2022 24 mos October 28, 2024 0.777% Beal Bk Plano TX 247,000.00 247,000.00 1.350% March 26, 2022 36 mos March 26, 2025 0.771% Beal Bk Las Vegas NV 247,000.00 247,000.00 1.250% March 26, 2022 36 mos March 26, 2025 0.771% First Technology Federal 248,000.00 248,000.00 5.000% April 14, 2023 24 mos April 14, 2025 0.774% Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 0.765% American Express National Bank 246,000.00 246,000.00 3.100% May 25, 2022 36 mos May 25, 2025 0.768% New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.777% Chief Financial Federal Credit Union 249,000.00 249,000.00 4.600% October 12, 2022 36 mos October 14, 2025 0.777% Live Oak Bank 249,000.00 249,000.00 3.150% May 25, 2022 48 mos May 26, 2026 0.777% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.777% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.774% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.758% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.777% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.774% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.768% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.761% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.777% Morgan Stanley Bank 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2028 0.774% Total Certificates of Deposit 5,447,000.00 5,447,000.00 16.999% Agency Bonds
Federal Farm Credit Bank 2,500,000.00 2,499,622.25 1.600% November 1, 2019 48 mos November 1, 2023 7.802% Federal Farm Credit Bank 1,999,314.00 1,945,159.72 0.350% December 4, 2020 42 mos May 16, 2024 6.239% Federal Home Loan Bank 499,252.43 499,456.68 1.000% July 19, 2022 29 mos December 20, 2024 1.558% Federal Farm Credit Bank 998,431.00 935,981.95 0.430% March 17, 2021 48 mos March 3, 2025 3.116% Federal Natl Mortgage Assn 1,000,000.00 911,180.48 0.500% October 20, 2020 60 mos October 20, 2025 3.121% Federal Home Loan Bank 999,500.00 901,192.87 0.800% March 17, 2021 60 mos March 10, 2026 3.119% Federal Home Loan Bank 994,396.00 910,926.67 2.400% March 17, 2021 72 mos March 29, 2027 3.103% Federal Home Loan Bank 500,000.00 468,194.87 3.375% May 17, 2022 60 mos May 17, 2027 1.560% Total Agency Bonds 9,071,715.49 9,490,893.43 29.618%

ATTACHMENT 1
300 E. Branch St.

Arroyo Grande, CA 93420
Phone: (805) 473-5400

CITY OF ARROYO GRANDE
Portfolio Summary
October 31, 2023
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Municipal Bonds
California State GO Various Purp Bond 491,810.00 $ 469,770.00 $ 3.100% May 12, 2022 47 mos April 1, 2026 1.535% Total Municipal Bonds 469,770.00 491,810.00 1.535%
Treasury Obligations
U.S. Treasury Z-2026 Series 984,728.00 899,687.50 1.100% December 6, 2021 53 mos May 31, 2026 3.073% Total Treasury Obligations 899,687.50 984,728.00 3.073% TOTAL INVESTMENTS $ 31,517,921.44 32,044,179.88 $ 100.000%

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
DATE: December 12, 2023
SUMMARY OF ACTION:

Consider, receive, and file the Fiscal Year (FY) 2023-24 First Quarter Financial Status Report and approve fifteen (15) Budget Adjustment Requests.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Preparation of the First Quarter Financial Status Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the first quarter, FY 2023-24 revenues for the Consolidated General Fund were $2.6 million, or two percent (2%), below than the Budget Target (“Target”). Actual Expenditures were $7 million, and below the Budget Target by approximately $1.5 million, or six percent (6%).

The City Council is being asked to approve fifteen budget adjustments. The overall impact to the budget is an increase in Consolidated General Fund expenditures of $180,633, in Water Fund expenditures of $200,271, and in Water Availability Fund expenditures of $24,900, as reflected in the following table 1:

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

Table 1 – First Quarter Budget Adjustment Request
RECOMMENDATION:

Consider, receive, and file the FY 2023-24 First Quarter Financial Status Report; and approve fifteen Budget Adjustment Requests.

BACKGROUND:

Each fiscal year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The First Quarter Financial Status Report is the first of four financial performance reports that staff will present to Council during the 2023-24 fiscal year. The purpose of the FY 2023-24 First Quarter Financial Status Report is to:
 Compare first quarter revenues received and expenditures incurred to the first quarter of the prior year and to the budgeted Target to determine the City’s financial performance;
 Provide explanations for key account variances and identify any potential trends that might impact financial planning; and
Request Revenue Expenditure
General
Fund
Water Fund
Impact
Water Availability
Fund Impact
Carryover OTS Grant for Traffic/DUI
Enforcement 22,824 22,824 - - -
Carryover Retraining Scholarship
Program 21,500 21,500 - - -
Carryover F250 Replacement Public
Works Truck - 78,433 78,433 - -
Carryover User Fees & DIF
Contractual Services - 27,200 27,200 - -
Carryover Cash for Grass Program - 24,900 - - 24,900
CDBG Grant increase 7,958 7,958 - - -
Reallocate Vehicle Replacement
Funding towards Mower - 50,000 - - -
Reallocate Salary Savings to
Contractual Services for CIP - 60,000 - - -
Tree Removal Support - 50,000 50,000 - -
Increased need to fill Potholes - 10,000 10,000 - -
Village Sign at Traffic Way & Branch - 15,000 15,000 - - Community Development Intern - 10,000 - - -
Central Coast Blue (CCB)
Operating Costs - 28,971 - 28,971 -
Phased Main Replacement at
Cornwall Avenue, from Rena to El
Camino Real (ECR) - 171,300 - 171,300 -
Totals 52,282 578,086 180,633 200,271 24,900

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

 Provide other key first quarter information including headcount statistics, status of Capital Improvement Projects, and requests for City Council’s approval of Budget Adjustment Requests that have not previously been approved.

The City’s actual first quarter financial results will be compared to both the prior year’s first quarter and the budgeted Target. The Target for expenditures is calculated as one fourth (25%) of the FY 2023-24 Budget and represents the 3-month period from July 2023 through September 2023, except for the Non-Departmental Annual Payments line that has a Target of the full budget. This approach increases the expenditure Target from 25% to 33% for the first quarter. The Target for revenues does not use the 25% Target but a Target of 12.4% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter.

The First Quarter Report also includes a section regarding Budget Adjustments Requests.

This section summarizes individual budget adjustments approved by the City Council during the first quarter, as well as administrative adjustments completed by City staff.

Additionally, this section of the report includes new Budget Adjustment Requests not otherwise addressed in past, individual City Council agenda items. Approval will enable the City to complete important work items and meet the needs of the community.

ANALYSIS OF ISSUES:

First Quarter (Q1) Revenue and Expenditures Compared to Prior Year Table 2 - Current Year Q1 Actuals Compared to Prior Year Q1 Actuals The Consolidated General Fund shown in Table 2 is the primary operating fund of the City and accounts for resources and services traditionally associated with government.

The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Local Sales Tax Fund accounts for the revenues derived from Measure O06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O06 included advisory measures when passed, providing direction on the uses to which First Quarter
FY 2023-24
First Quarter
FY 2022-23 Variance
Revenue $ 2,554,661 $ 2,264,418 $ 290,243
Expenditures $ 7,024,105 $ 6,557,687 $ 466,418
Consolidated General Fund

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account. This report will present information for the Consolidated General Fund that includes Local Sales Tax Fund Measure O-06 revenues and expenditures. Consolidated General Fund revenues at the first quarter of this year were approximately $290,243 higher than the first quarter of the prior year. Expenditures were approximately $466,418 higher at the end of the first quarter of the current fiscal year versus the first quarter of the prior year. A more thorough explanation of first quarter variances is set forth in the attached financial report. The following is a summary of the first quarter variances between the two fiscal years.

Revenue (approximately $290,243 higher)
The majority of the $290,243 variance between the first quarter of this year and the prior first quarter is related to the increase in User Fees received in the first quarter of FY 2023- 24 when compared to the first quarter of FY 2022-23.

Expenditures (approximately $466,418 higher)
As mentioned, first quarter expenditures compared to the prior year were higher by $466,418. The majority of the variance between the two fiscal quarters is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation.

First Quarter (Q1) Revenue and Expenditures Compared to Target Table 3 - Current Year Q1 Actuals Compared to Target
Table 3 above compares first quarter actual results to the budgeted Target. First Quarter actual revenue was short of the Target by $505,338. First Quarter actual expenditures were short of the Target by approximately $1.5 million. The following is a summary of the first quarter revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of first quarter variances is set forth in the attached financial report.

Revenue ($505,338 lower)
The actual first quarter Consolidated General Fund revenue shortfall compared to the Target is not unusual. Revenue realization is typically low in the first quarter of the fiscal FY 2023-24
First Quarter Target
FY 2023-24
First Quarter Actuals Variance
Revenue $ 3,059,999 $ 2,554,661 $ (505,338)
Expenditures $ 8,512,078 $ 7,024,105 $ (1,487,973)
Consolidated General Fund

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

year due to the time lag involved in billing cycles and the receipt of reimbursements. Some of the larger revenue variances are explained below.
 The largest single source of City revenue is Secured Property Tax. Secured Property Tax is billed by the County to property owners and payable in two (2) installments. Property owners typically receive their second property tax bill at the end of September or early October, with a due date of November 1st. Most of the property tax related to the first installment was received in December, 2022. The second installment is due on April 1st and will be reflected in the fourth quarter report. The revenue Target includes the equivalent of one month of property tax revenue, but actuals were still lower than this conservative revenue assumption by $490,477.
 Transient Occupancy Tax (TOT) revenue reflects a $37,349 favorable variance to the Target. The Target and actual TOT revenue represents only two months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments.
 Other revenue is made up of Business License Tax, Fines, Intergovernmental Income, Other Charges for Service, and Other Revenues. The actual revenue in this category is lower than the Target by $129,853. The largest variance in this category is related to three revenue accounts. The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the general plan update. Once these funds are spent for this project, the revenue will be recognized at that time.

Expenditures (approximately $1.5 million lower)
Actual first quarter expenditures were $1,487,973 under the Target, though all City departments were under their spending Targets, except for Recreation Services and Administrative Services. Some of the more significant savings occurred in the Measure O-06 Sales & Use Tax Fund, City Administration, Police, Public Works, and Community Development Departments. The first quarter report provided in Attachment 1 includes greater detail regarding the causes for the expenditure variances in these departments.

The first quarter report provided in Attachment 1, Section 5, includes a new update on the Goal Status Reports to Council, that includes City’s progress towards completing Major City Goals and City’s Capital Improvement Plan. This information is provided to keep the Council apprised of the status of the Goal Status Reports and includes progress towards completing Major City Goals and Capital Improvement Plan.

Budget Adjustments
One of the purposes of the First Quarter Financial Status report is to recommend the reappropriation (carryovers) of prior year budgets for services/products that were begun, but not completed, as of June 30, 2023. These requested carryovers do not include capital improvement projects. Each year, the City Council adopts a budget which commits

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

resources to the Capital Improvement Program (CIP) that addresses infrastructure maintenance and improvements throughout the City. The CIP is funded through a variety of sources including significant grants and transfers from other funds. CIP funds do not have annual appropriated budgets. Control over capital projects is maintained by a project-length CIP budget. This project-length budget authorizes total expenditures over the duration of a construction project, rather than year by year. A detailed accounting by Project is included in Attachment 1 for information purposes.

Staff identified five projects that were budgeted in FY 2022-23 and were not completed in that fiscal year but are expected to be completed in the current fiscal year. It is requested that the following carryover budget adjustments be approved:
 Police Department: Carryover $22,824 related to the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. This Grant program operates from October 1, 2022 through September 30, 2023. This carryover is due to the misalignment of the program year ending in September, but budgeted in FY 2022-

23. The invoice for July 1 through September 30, 2023, was submitted totaling $22,824, and is anticipated to be received within the next few weeks.  City Council: Carryover $21,500 for the retraining scholarship program, funded using SB 1090 funds. This program was approved at the March 9, 2021 City Council meeting, Item 10.a. The original approval was for $40,000. In FY 2021-22, $15,000 was spent and in FY 2022-23, $3,500 was spent. This program is administered by the South County Chamber of Commerce in partnership with SLO Partners. The Chamber is continuing to process scholarships throughout this Fiscal Year as needs arise.
 Public Works Department: Carryover $78,433 for the purchase of an F250 Replacement Truck. This replacement vehicle purchase was placed in November of 2022, but was not received until July of 2023.
 Administrative Services Department: Carryover $27,000 for the User Fee and Development Impact Fee studies. The User Fee study was completed in the second quarter of FY 2023-24 and it is anticipated that the Development Impact Fee study will be completed in the third quarter of FY 2023-24.  Public Works Department: Carryover $24,971 for the Cash for Grass program from the Water Availability Special Revenue Fund that has been allocated to residents participating in the program but has not been processed for payment related to completion of work in FY 2022-23.

Nine additional budget adjustments are requested as described in more detail below:

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

 CDBG: The CDBG allocation from the County was presented to Council totaling $56,749. The final allocation provided totals $64,707, an increase of $7,958 to the City. This budget adjustment request will increase both revenues and expenditures and will not have an impact on the general fund.
 Public Works Department: The proposed includes an increase in the Public Works Department’s budget for minor adjustments to 5 line items, reflecting a total increase of $75,000. This increase would include:
o Reallocate $50,000 of budgeted expenditures within the Public Works budget for the Engineering small truck to be used for a replacement riding mower. The mower was originally budgeted for replacement in FY 2024-25 but has become a higher priority replacement, when compared to the requested Engineering small truck. The Engineering small truck will be requested for replacement in FY 2024-25. No funds are being requested from general fund balance.
o Reallocate $60,000 of budgeted expenditures within the Public Works Administration Division salary savings, related to staff medical leave, to continue to fund a consultant to provide CIP project management services from October through December of 2023.
o Appropriate $50,000 from the general fund to provide additional capacity in the maintenance of City owned trees. Specifically, the emergency removal or trimming of 40 to 60 foot tall City trees. Such maintenance is dangerous for City employees without the specialized equipment needed, such as cranes, tall bucket trucks and a large crew.
o Appropriate $10,000 from the general fund to support the Streets team in purchasing a high quality and longer lasting asphalt pothole filler product to support the increased number of potholes each year.
o Appropriate $15,000 from the general fund to update the “Welcome to Arroyo Grande” sign and medians at Traffic Way & Branch. This work would include a larger brick pedestal, new Village sign and rock installed at the larger and smaller medians at this location.
 Community Development Department: Reallocate $10,000 of budgeted expenditures within the Building Division salary savings to fund an intern position within Community Development to assist with research, project renderings, scanning, and organizing project files.
 Water Fund: Appropriate $28,971 from the Water Enterprise Fund Balance to fund the City’s share of the Central Coast Blue (CCB)

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

o Appropriate $3,501 of FY 2022-23 true up costs related to the operating budget. This was reviewed and approved by the CCB Board on September 18, 2023, item 7.a.
o Appropriate $25,470 associated with the work completed by Urban Futures, Inc. to provide financial support in the application to the Environmental Protection Agency (EPA) for a Water Infrastructure Finance and Innovation Act (WIFIA) loan and S&P Application. The agreement with Urban Futures was reviewed and approved by the CCB Board on June 19, 2023, item 6.b.  Water Fund: Appropriate $171,300 to fund the Phased Main Replacement at Cornwall Avenue, from Rena to El Camino Real (ECR). The total project cost is $750,000, the remaining portion of the project is funded with ARPA funds and discussed in additional detail below.

Finally, the reallocation of ARPA funds is included as a budget request. Previous reallocations of the City’s ARPA funds were approved at the February 8, 2022; May 24, 2022; September 27, 2022; and May 9, 2023 City Council meetings. As projects are completed and project estimates are confirmed, allocation funding numbers in Table 4 provide the City Council approved allocations spent through the end of FY 2022-23. The third column of Table 4 shows expected spending of funds through the allotted ARPA deadline of December 31, 2024. ARPA funds must be committed by way of a contract or purchase order and spend these monies no later than December 31, 2026. The final column shows funds that need to be reallocated as a result of budgeted project savings.

Table 4 – ARPA Allocation
Staff reviewed the 5-year Capital Improvement Project Plan, accessed any other outstanding projects that were prioritized due to public health and safety related issues, and reviewed the most recent US Treasury Final Rule governing eligible expenditures of the ARPA funds. During this review the Swinging Bridge Reinforcement project was identified because the timeframe for completion of this project makes it eligible for ARPA ARPA Funding Allocation
CC Approved
Allocation
Spent through
06/30/2023
Expected
to Spend
Amount to
Reallocate
COVID related City expenditures 42,375 69,624 - (27,249) Water Infrastructure Projects 1,350,150 51,400 1,298,750 - Sewer Infrastructure Projects 549,200 165,534 383,666 - Stormwater Infrastructure Projects 900,842 881,502 - 19,340 Public Safety Video Cameras 880,700 - 516,493 364,207
Streets Infrastructure Projects 24,958 24,958 - -
Homeless Shelter Support 300,000 - 300,000 -
Non-Profit Assistance/Community Service Grants 114,129 114,129 - - Childcare Assistance - First 5, 5% request 100,000 100,000 - - Smart Share ADU SLO Proposal 37,887 - 37,887 -
Grand Total 4,300,241 1,407,148 2,536,796 356,297

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

funding. The budget request of ARPA funds is to reallocate the $356,297 to the Swinging Bridge Reinforcement project. This project is currently out to bid and is anticipated to be completed by December 31, 2024.

Through the review process is was noted that the Phased Main Replacement at Cornwall Avenue project, from Rena to El Camino Real (ECR), is funded with the Water Infrastructure Project funds but was inadvertently budgeted in FY 2026-27 with an estimated total project cost of $1 million. The Council previously approved this project to be funded with an ARPA allocation of $578,700. The phased main replacement in Cornwall Avenue, from Rena to ECR, is not anticipated to cost $1 million. The main replacement on Fair Oaks, from Elm to Alder, was 2,000 feet with more services and had a total cost of $741,841.17. The main to be replaced in Cornwall Avenue is only 1,400 feet with fewer services and considerably less traffic. The anticipated project budget is now being set at $750,000, for these reasons.

Table 5 below shows the resulting total allocations of ARPA funding if approved as recommended by the Council, after which City staff would confirm eligibility and ensure the appropriate ARPA funding conditions are attached to each project:

Table 5 – Updated ARPA Allocation
ALTERNATIVES:

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

1. Receive and file the Fiscal Year 2023-24 First Quarter Financial Status Report and approve fifteen Budget Adjustment Requests;

2. Provide other direction to staff regarding the FY 2023-24 First Quarter Financial Status Report and the fifteen Budget Adjustment Requests; ARPA Funding Allocation
CC Approved
Allocation
COVID related City expenditures 69,624
Water Infrastructure Projects 1,350,150
Sewer Infrastructure Projects 549,200
Stormwater Infrastructure Projects 881,502
Public Safety Video Cameras 516,493
Streets Infrastructure Projects 24,958
Homeless Shelter Support 300,000
Non-Profit Assistance/Community Service Grants 114,129
Childcare Assistance - First 5, 5% request 100,000
Smart Share ADU SLO Proposal 37,887
Swinging Bridge Reinforcement 356,297
Grand Total 4,300,241

Item 9.c.

City Council
Consideration of Fiscal Year 2023-24 First Quarter Status Report and Request to Approve Fifteen Budget Adjustment Requests
December 12, 2023

3. Receive and file the FY 2023-24 First Quarter Financial Status Report and do not approve the Budget Adjustment Requests and provide further direction to staff; or

4. Provide other direction to staff.

ADVANTAGES:

The financial report presents an updated review of the City’s financial performance in the first quarter of FY 2023-24. Approval of the requested budget adjustments will enable staff to continue providing high quality services to the organization and to the public.

DISADVANTAGES:

No disadvantages have been identified at this time.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Fiscal Year 2023-24 First Quarter Financial Status Report

ATTACHMENT 1

City of Arroyo Grande
Fiscal Year 2023-24
First Quarter Financial Status Report

INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the first quarter for Fiscal Year (FY) 2023-24. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the first quarter of the fiscal year and compare actual results to the prior year and the budgeted Target, to determine the City’s performance. The first quarter timeframe is July 1 through September 30, 2023.

The financial report is organized in the following sections:

Section 1 – an overview of City’s financial position at the end of the first quarter of FY 2023-24. This includes a comparison of first quarter results between the current and prior year. In addition, first quarter results will be compared to the budgeted Target. As part of the analysis, brief explanations of significant revenue and expenditure variances are included.

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

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

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

Section 5 – an update on the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan.

ENSURING FISCAL
STABILITY:

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

ATTACHMENT 1

SECTION 1: OVERVIEW OF FINANCIAL POSITION

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

Consolidated General Fund – The Consolidated General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Local Sales Tax Fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O-06 included advisory measures when passed providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account. This report will present information for the Consolidated General Fund that includes Local Sales Tax Fund Measure O-06 revenues and expenditures.

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

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

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

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

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

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

ATTACHMENT 1

CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the first quarter of FY 2023- 24 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals in the table reflect the first quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget.

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

Governmental Funds – At the end of the first quarter of FY 2023-24, Governmental Fund revenue was -6.4%, or $416,692 lower than prior year, and expenditures were higher by 3.6% or $260,467.

The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the Consolidated General Fund and the newly created American Rescue Plan Act Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking Administrative Services Public Access Television Sewer Facility Sanitation Distribution Community Development Police Protection Impact Water San Luis Obispo Tourism Police Department Park Development Water Facility Marketing District Recreation Services Park Improvement Lopez Water (SLOTMD) Public Works Recreation Community Center
Local Sales Tax Fund Grace Lane Assessment District
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.

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

ALL FUNDS
PROPRIETORY FUNDS General Fund Debt Service Funds Enterprise Funds Private Purpose Fund First Quarter
FY 2023-24
First Quarter
FY 2022-23 Variance
Revenue $ 6,101,535 $ 6,518,227 $ (416,692)
Expenditures $ 7,465,739 $ 7,205,272 $ 260,467
First Quarter
FY 2023-24
First Quarter
FY 2022-23 Variance
Revenue $ 2,554,661 $ 2,264,418 $ 290,243
Expenditures $ 7,024,105 $ 6,557,687 $ 466,418
Governmental Funds
Consolidated General Fund Page 35 of 301
ATTACHMENT 1

(ARPA) Fund, which is separate from the Consolidated General Fund and not otherwise addressed in this report. The Governmental Funds category includes the Consolidated General Fund as well as other Special Revenue Funds. The Consolidated General Fund and ARPA Fund variances are explained as follows:

Consolidated General Fund - The Consolidated General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. Consolidated General Fund revenue in the first quarter was 12.8%, or $290,243 higher than the first quarter of the prior year. Expenditures increased by 7.1%, or $466,418 higher than the first quarter of the prior year.

The majority of the variance between the two fiscal years is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation.

ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures incurred totaled $604,246. In FY 2022-23 expenditures incurred totaled $745,837 the remaining $2,950,158 is currently recognized as revenue in FY 2023-24.

CONSOLIDATED GENERAL FUND IMPACTS
The following discussion focuses on the City’s Consolidated General Fund performance. Chart 1 starts off with a simple overview of Consolidated General Fund performance compared to the Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2023-24 first quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares first quarter actual results to the Target (Table 4).

Using the Target as a comparator against actual results provides a simplified method to evaluate performance for each quarter. The Target for revenues does not use the 25% Target but a Target of 12.4% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year.

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

The City’s actual first quarter financial results will be compared to both the prior year’s first quarter and the budgeted Target. The Target for expenditures is calculated as one-fourths (25%) of the FY 2023-24 Budget and represents the 3-month period from July 2023 through September 2023, except for the NonDepartmental Annual Payments line that has a Target of the full budget. This approach increased the Target from 25% to 33% for the first quarter.

ATTACHMENT 1

Chart 1
Chart 1 shows a simple comparison
of actual first quarter revenue and
expenditures to the Target. The
actual first quarter Consolidated
General Fund revenue is less than
the budgeted Target by $500,000,
which is not unusual since revenue
realization is typically lower than
the Target through the first quarter
due to the time lag involved in
billing cycles and the receipt of
reimbursements. Likewise, actual
expenditures through first quarter totaled $7 million, or 28% of the full year’s Budget, and are under the Target by $1.5 million. A more detailed discussion on Consolidated General Fund revenue and expenditure variances is included later in this report.

Table 2
Table 2 reflects major expenditure cost
categories within the Consolidated General
Fund. This chart is intended to explain
where the City’s resources were spent
during the first quarter. Within the total
expenditures of $7 million, 59% of the
City’s costs are associated with personnel,

37.4% with operating and maintenance,

1.3% for the City’s debt service, 1.1% for
Capital Outlay, and 1.2% with transfers to other funds.

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

FY 2023-24 % of
Q1 Actuals Actuals
Personnel Costs $ 4,142,302 59.0%
Operating Costs 2,626,489 37.4%
Debt Service 90,912 1.3%
Capital Outlay 78,578 1.1%
Transfers Out 85,824 1.2%
Total $ 7,024,105
Expenditure Category

ATTACHMENT 1

Table 3 – Consolidated General Fund Expenditures by Department Overall, first quarter expenditures were $1.5 million under the Target. Though all City departments were under their spending Targets, except for Recreation Services and Administrative Services. Some of the more significant savings occurred in the Measure O-06 Sales & Use Tax Fund, City Administration, Police, Public Works, and Community Development Departments. A more detailed explanation of key expenditure variances by individual department/division is provided below.

KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2023-24
Police Services includes the functions of Administration, Patrol Services, Support Services and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
 The Police Department currently has two vacancies and one medical leave, resulting in labor savings of approximately $322,000.
 The contract with the County Sheriff Department for dispatch services is paid semiannually in the months of December and June. Payments for these services will not be made until the second and fourth quarters, resulting in a first quarter favorable variance to the Target of $124,300.  The variance for Police Administration through the end of the first quarter results from City’s contract with the County for Animal Control Services; the July through September payment was made in the second quarter, resulting in a first quarter favorable variance to the Target of $25,100.

This fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. The majority of the favorable variance in this department can be attributed to transfers and lower spending in debtservice. Some of the more significant variances include:

City Administration $ 1,579,600 $ 394,900 $ 294,452 $ 100,448 6% Legislative & Information Services 449,460 112,365 85,106 27,259 6% Measure O-06 Sales & Use Tax 3,154,001 788,500 294,741 493,759 16% Administration Services 4,646,830 1,161,708 1,259,434 (97,726) -2% Non-Departmental Annual Payments 2,836,525 2,836,525 2,755,499 81,026 3% Community Development 2,578,122 644,531 390,647 253,884 10% Police Department 6,882,775 1,720,694 1,193,335 527,359 8% Recreation Services 901,370 225,343 233,700 (8,357) -1% Public Works 2,510,055 627,514 517,191 110,323 4%
TOTAL EXPEDITURES 25,538,738 8,512,080 7,024,105 1,487,975 6% %
Fav/(Unfav)
Consolidated General Fund Department Variances - First Quarter Consolidated General Fund
Department
2023-24
Adjusted
2023-24 Q1
Actuals
Dollar
Fav/(Unfav)
2023-24 Q1
Target
Department: Police Services
Division: Various (4201, 4203, 4204, 4209)
Issue: Overall savings in salaries and
benefits and contractual services
Impact to Consolidated General Fund:
$527,359 savings

ATTACHMENT 1

 The variance for Measure O-06 Sales & Use Tax
Fund through the end of the first quarter results from
Transfers Out to Capital Improvement Program (CIP)
Projects; the July through September allocation
towards projects is completed once a project is finished or at the end of the fiscal year. This is resulting in a first quarter favorable variance to the Target of $471,100.
 The Debt Service for the new Animal Services Shelter is paid semiannually in the months of November and May. Payments for these services will not be made until the second and fourth quarters, resulting in a first quarter favorable variance to the Target of $15,000.

The Community Development Department includes the
functions of Planning and Building & Safety Divisions.

The majority of the favorable variance in this
department can be attributed to salary savings and
lower spending in contractual services. Some of the
more significant variances include:
 The vacancy of the Building Permit Technician position resulting in labor savings of approximately $85,300.
 Minimal contractual services for the Planning Division were incurred through first quarter resulting in $101,828 of favorability to the Target. The following table will summarize where these savings occurred:
 The Building Division contractual services has a variance of $36,000 related to the timing of invoices from CSG Consultants, the billing is based on services provided in each month. The September invoice has was not received until October.

The Public Works Department includes the functions of
Government Buildings, Engineering, Auto Shop,
Administration, Park Maintenance, and Soto Sports
Complex Divisions within the Consolidated General
Fund. The majority of the favorable variance in this
department can be attributed to salary savings. For
simplicity, Public Works will be analyzed in total rather than by individual divisions. The Public Works Administration Division currently has a vacant Public Works Director/Assistant City Manager position and had a vacant Assistant Capital Projects Manager the majority of the first quarter resulting in labor savings of approximately $107,200.

Budget Target Expenditures Variance
418,182 104,546 8,343 96,203
25,000 6,250 - 6,250
15,000 3,750 4,375 (625)
458,182 114,546 12,718 101,828
On-Call Planning Services and Misc. Planning Studies
On-Call Environmental Review Services
Comprehensive General Plan Update
Planning Contractual Services
Department: Measure O-06 Sales & Use Tax
Fund
Division: Fund 218
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$493,759 savings
Department: Community Development
Division: Various (4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$253,884 savings
Department: Public Works
Division: Various (4213, 4301, 4305, 4307,
4420, 4430)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$110,323 savings

ATTACHMENT 1

The City Administration Department includes the
functions of City Council, City Attorney, Retirees, City Manager, and Human Resources Divisions within the
Consolidated General Fund. The majority of the
favorable variance in this department can be attributed to lower spending in contractual services. Some of the
more significant variances include:
 Minimal contractual services for the City Manager Division were incurred through first quarter resulting in $37,900 of favorability to the Target related to the Ballot Measure and Polling Consultants beginning work in the second quarter and the Economic Development Consultant budgeted to begin in the third quarter.
 The City Attorney Division has a variance of $42,300 related to the timing of invoices from BBK, the billing is based on services provided in each month. The September invoice was not received until October.
 The City Council Division has a variance of $18,750 related to the timing of the Community Services Grant program being approved in the third quarter of the fiscal year.

KEY REVENUE VARIANCES BY ACCOUNT FOR THE FIRST QUARTER
Table 4 – Consolidated General Fund Revenue
As reflected in Table 4, first quarter actual revenue was short of the Target by $505,338. This table uses a Target of 12.4% that more accurately reflects the anticipated revenues to be received in the first quarter of the fiscal year. Revenue realization is typically low at the end of the first quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is included below to help explain actual revenue variances through the first quarter compared to the Target.

Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due Property Tax $ 6,327,486 $ 527,291 $ 36,814 $ (490,477) -8% Sales Tax 5,268,158 439,013 417,648 (21,365) 0%
Measure O-06 Sales & Use Tax 2,962,000 246,833 269,036 22,203 1% Transient Occ. Tax 1,545,000 257,500 294,849 37,349 2%
Property Tax in Lieu of VLF 2,001,300 - - - 0%
Franchise Fees 795,600 132,600 44,095 (88,505) -11%
License & Permit Fees 455,800 113,950 127,490 13,540 3% User Fees 521,500 130,375 220,417 90,042 17%
Planning Fees 371,500 92,875 145,083 52,208 14%
Recreation Fees 415,867 103,967 203,252 99,285 24%
Transfers In 3,114,066 778,517 688,752 (89,765) -3%
Other Revenue 948,316 237,079 107,226 (129,853) -14%
TOTAL 24,726,593 $ 3,060,000 2,554,662 (505,338) -2%
Consolidated General Fund Revenue Variances - First Quarter REVENUE BY CATEGORY 2023-24
Budget
FY 2023-24
Q1 Actuals
Dollar
(Unfav)/Fav
FY 2023-24
Q1 Target
%
Fav/(Unfav)
Department: City Administration
Division: Various (4001, 4002, 4003, 4099,
4101, 4110)
Issue: Overall savings in contractual services
Impact to Consolidated General Fund:
$100,448 savings

ATTACHMENT 1

date of November 1st. The majority of property tax related to the first installment will be received in December 2023. The second property tax bill installment is received in April 2024 and will be included in the fourth quarter report. Property tax typically represents around 26% of the City’s annual revenue. The Target is based on one month of Property Tax revenue. Actual revenue received in this category was lower than this conservative Target.

Sales Tax and Measure O-06 Sales & Use Tax – Sales tax and Measure O-06 Sales & Use Tax realization through first quarter is on track. Actual sales tax revenue received through first quarter was $417,648 and Measure O-06 Sales & Use Tax revenue received through first quarter was $269,036 which represents one month of payments (July). The Target is also based on one month of revenue, taking into account the timing of anticipated payments.

Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $37,349 favorable variance to the Target.

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

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

Franchise Fees – Only two months of Waste Water Connection franchise fees were received through first quarter. In addition, Charter Communications franchise fees earned in the first quarter will not be paid and received until the second quarter. In light of the timing of payments, the Target is based on 2 months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the first quarter is lower than the Target by $88,505.

License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is above the Target by $13,540. User fee revenue is above the Target by $90,042. Planning revenue exceeded the Target by $52,208. The Target is based on 25% or 3 months of the fiscal year’s total budget. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand.

Recreation Fees – Recreation revenue is above the Target by $99,285. The Target is based on 3 months of the fiscal year’s total budget.

Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the consolidated general fund. The largest variance in this category is related to three revenue accounts. The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the general plan update.

Once these funds are spent for this project, the revenue will be recognized at that time, resulting in a revenue shortfall to the Target of approximately $90,900. The majority of the revenue from Business Licenses is received in December and January of each year, resulting in a revenue shortfall to the Target of approximately $20,900.

ATTACHMENT 1

SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (1st Quarter) None made during this quarter.

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

EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the first quarter of FY 2023-24 was 6.4%. This equates to five (5) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.

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

Legislative & Info Services 2 - 3%
Police Services 29 3 37% Police Officer (3)
Public Works 24 - 31%
Recreation Services 3 - 4%
Total 78 5 100%

ATTACHMENT 1

SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement Projects (CIP).
*This does not include the Carryover CIP projects listed below. The Carryover CIP projects will be incorporated into the Second Quarter Financial Status report.

Project
Number Project Fund
Budget FY
2023-24*
Current
Status
Project Budget
Expended
350-5614 Bridge Street Bridge Habitat Mitigation HBP $ 48,628 In Progress $ 49,971 350-5679 Traffic Way Bridge Replacement HBP/Sales Tax $ 718,000 In Progress $ 7,190 350-5638 Pavement Management Program
USHA/General/SB1/Sale
s Tax/General Fund $ 1,663,380 In Progress $ 232,167
350-5453 Financial Management Software Sewer/Water/Sales Tax $ 188,000 In Progress $ 14,038 350-5468 Public Safety Video Cameras COPS/Sales Tax $ 1,000,000 In Progress $ - 350-5695 Active Transportation Plan ATP/Sales Tax $ 125,000 In Progress $ 6,878 350-5601
Fair Oaks Ave Active Transportation
Improvements, Valley Road to Traffic Way
Developer/Other Gov
Agencies/Sales Tax $ 75,000 In Progress $ -
350-5478 Arroyo Grande Creek Remediation
Sales Tax, FEMA,
CalOES $ 400,000 In Progress $ -
350-5610 191 Tally Ho Sales Tax $ 110,000 In Progress $ 850 350-5616
Virginia Drive and S. Halcyon Road Curb
Ramp and Sidewalk Improvement CDBG $ 56,749 In Progress $ - 612-5853 Lift Station 3 FEMA/CalOES/Sales Tax $ 850,000 Not Started $ - 640-5973
Phased Main Replacement - Highway
101 Crossing Upgrade, El Camino
Real to West Branch Street ARPA/Water Fund $ 43,800 Not Started $ 548,350 350-5479 Fire Station 1 Apparatus Bay Doors Sales Tax $ 115,000 Not Started $ - 350-5606 Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe
Routes to
School/General/Sales
Tax/ATP $ 1,304,000 Not Started $ -
350-5477 Public Works Office Space Remodel Sales Tax $ 100,000 In Progress 612-5817
Trenchless Sewer Rehabilitation -El
Camino Real to West Branch St. ARPA $ 282,000 Not Started $ -

ATTACHMENT 1

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

Capital Improvement: Administrative Carryover of $9,307,342 for the Capital Projects listed in the table below. Capital Project funds do not have annual appropriated budgets. Control over capital projects is maintained by a project-length capital improvement budget. This project-length budget authorizes total expenditures over the duration of a construction project, rather than year by year.

Affordable Housing Trust Fund: Appropriate $448,370.37 from the Affordable Housing Trust Fund Balance to support the development of Housing Authority of San Luis Obispo (HASLO)’s affordable housing project consisting of 63 affordable multi-family units located at 700 Oak Park Blvd. Approved on 07/25/2023 Council meeting, item 9.m.

Water Fund: Appropriate $55,000 from the Water Enterprise Fund Balance to fund the City’s share of the Central Coast Blue (CCB) project costs to submit an application to the Environmental Protection Agency (EPA) for a Water Infrastructure Finance and Innovation Act (WIFIA) loan. The initial WIFIA application fee is $25,000 and the S&P RES fee is $30,000. Approved on 08/08/2023 Council meeting, item 9.c.

Public Works Department: Appropriate $90,000 from the General Fund reserve for the purchase of decorative concrete barriers and planters associated with the long-term parklets program, along with wayfaring street signs to guide vehicles to the Olohan and Le Point parking areas. Approved on 08/08/2023 Council meeting, item 9.h.

Fund Project # Project Title Project Budget Adjustment
350 5453 Financial Management Software 225,000
350 5463 Women's Club Lighting Project 821
350 5468 Public Safety Camera System 125,000
350 5473 Replacement Generator at FCFA Station 1 610,714 350 5476 City Hall Front Door Accessibility Improvements 53,341 350 5556 Recreation Services / Community Center Building 44,745 350 5601 Fair Oaks Ave Active Transportation Improvements 50,000 350 5620 Swinging Bridge Reinforcement 1,100,292
350 5621 Arroyo Grande Creek Stabilization 6,300
350 5638 Pavement Management Program 4,882,779
350 5658 Concrete Improvements 452,238
350 5679 Traffic Way Bridge Replacement Project 447,593 350 5695 Active Transportation Plan (ATP) 125,000
640 5911 Phased Mains Replacement 785,892
640 5944 Water Well #11 Facilities 42,771
640 5946 Galvanized Service Replacements 63,655
640 5973 Phased Main Replacement - Highway 101 Crossing Upgrade 291,200 9,307,342

ATTACHMENT 1

City Manager’s Office: Reallocate $26,500 of budgeted expenditures within the City Manager salary savings to fund the executive recruitment services for a new City Manager. Approved on 08/22/2023 Council meeting, item 9.b.

Capital Improvement: Appropriate $413,400 from Urban State Highway Account funds (USHA) to increase the 2022 Pavement Management Program (PMP) budget and to reallocate $134,406 of Local Sales Tax Funds from PMP to the 2022 Concrete Repairs Project to include the two add alternate elements from the initial bid. Approved on 08/22/2023 Council meeting, item 9.j.

Administrative Services Department: Reallocate the funding to incorporate the approval of the MOU’s with AGPOA and SEIU, as well as establishing the salary and benefits for the Management Group. The total cost of these agreements was $787,725. The FY 2023-24 budget had built in funds anticipation of these agreements. Approved on 09/12/2023 Council meeting, item 9.e.

Police Department: Receive $65,000 of Office of Traffic Safety Grant funds and appropriated the funding to implement driving under the influence enforcement services. Approved on 09/12/2023 Council meeting, item 9.h.

Police Department: Receive $41,500 of Department of Alcoholic Beverage Control (ABC) Grant funds and appropriated the funding to implement public awareness, minor decoy operations, shoulder tap operations, Informed Merchants preventing Alcohol-Related Crime Tendencies (IMPACT), and generally, implementation of ABC Alcohol Policing Partnership program. Approved on 09/12/2023 Council meeting, item 9.i.

Capital Improvement: Appropriate $3,228.88 of Local Sales Tax Funds for the City’s portion of the Federal Emergency Management Agency (FEMA) replacement of plant and materials for the Habitat Mitigation Phase of the Bridge Street Bridge Rehabilitation Project related to the 2023 storm event damages. Council approved a budget adjustment totaling $51,662. FEMA assistance will be provided at a 75% federal cost share totaling $38,746.50. California Governor's Office of Emergency Services (Cal OES) assistance will be provided at an 18.75% state cost share totaling $9,686.62. The City is responsible for the remaining 6.25% totaling $3,228.88. This request is to use Local Sales Tax Fund balance for the City’s $3,228.88 portion.

Approved on 09/26/2023 Council meeting, item 9.d.

Additional Requested First Quarter Budget Adjustments
In addition to the administrative budget adjustments for the CIP and the adjustments previously-approved by the City Council during the first quarter, fifteen new budget adjustments are proposed for approval along with the review and receipt of this report.

Five of the adjustments request to carryover funds for non-CIP projects that were budgeted in FY 2022- 23 and were not completed in that fiscal year but are expected to be completed in the current year. These five requested carryover adjustments include:
 Police Department: Carryover $22,824 related to the Office of Traffic Safety (OTS) Grant for Traffic/DUI Enforcement Program. This Grant program operates from October 1, 2022 through September 30, 2023. This carryover is due to the misalignment of the program year ending in September but budgeted in FY 2022-23. The invoice for July 1 through September 30, 2023, was submitted totaling $22,824 and it is anticipated to be received within the next few weeks.

ATTACHMENT 1

 City Council: Carryover $21,500 for the retraining scholarship program funded using SB 1090 funds. This program was approved at the March 9, 2021, City Council meeting, item 10.a., The original approval was for $40,000. In FY 2021-22, $15,000 was spent and in FY 2022-23, $3,500 was spent. This program is administered by the South County Chamber of Commerce in partnership with SLO Partners. The Chamber is continuing to process scholarships throughout this fiscal year as needs arise.
 Public Works Department: Carryover $78,433 for the purchase of an F250 Replacement Truck.

This replacement vehicle purchased was placed in November of 2022, but was not received until July of 2023.
 Administrative Services Department: Carryover $27,000 for the User Fee and Development Impact Fee studies. The User Fee study was completed in the second quarter of FY 2023-24 and it is anticipated that the Development Impact Fee study will be completed in the third quarter of FY 2023-24.
 Public Works Department: Carryover $24,971 for the Cash for Grass program from the Water Availability Special Revenue Fund that has been allocated to residents participating in the program but has not been processed for payment related to completion of work in FY 2022-23.

Nine additional budget adjustments are requested as described in more detail below:
 CDBG: The CDBG allocation from the County was presented to Council totaling $56,749. The final allocation provided totals $64,707, an increase of $7,958 to the City. This budget adjustment request will increase both revenues and expenditures and will not have an impact on the general fund.
 Public Works Department: The proposed includes an increase in the Public Works Department’s budget for minor adjustments to 5 line items, reflecting a total increase of $75,000. This increase would include:
o Reallocate $50,000 of budgeted expenditures within the Public Works budget for the Engineering small truck to be used for a replacement riding mower. The mower was originally budgeted for replacement in FY 2024-25 but has become a higher priority replacement, when compared to the requested Engineering small truck. The Engineering small truck will be requested for replacement in FY 2024-25. No funds are being requested from general fund balance.
o Reallocate $60,000 of budgeted expenditures within the Public Works Administration Division salary savings, related to staff medical leave, to continue to fund a consultant to provide CIP project management services from October through December of 2023. o Appropriate $50,000 from the general fund to provide additional capacity in the maintenance of City owned trees. Specifically, the emergency removal or trimming of 40 to 60 foot tall City trees. Such maintenance is dangerous for City employees without the specialized equipment needed, such as cranes, tall bucket trucks and a large crew. o Appropriate $10,000 from the general fund to support the Streets team in purchasing a high quality and longer lasting asphalt pothole filler product to support the increased number of potholes each year.

ATTACHMENT 1

o Appropriate $15,000 from the general fund to update the “Welcome to Arroyo Grande” sign and medians at Traffic Way & Branch. This work would include a larger brick pedestal, new Village sign and rock installed at the larger and smaller medians at this location.  Community Development Department: Reallocate $10,000 of budgeted expenditures within the Building Division salary savings to fund an intern position within Community Development to assist with research, project renderings, scanning, and organizing project files.  Water Fund: Appropriate $28,971 from the Water Enterprise Fund Balance to fund the City’s share of the Central Coast Blue (CCB).
o Appropriate $3,501 of FY 2022-23 true up costs related to the operating budget. This was reviewed and approved by the CCB Board on September 18, 2023, item 7.a. o Appropriate $25,470 associated with the work completed by Urban Futures, Inc. to provide financial support in the application to the Environmental Protection Agency (EPA) for a Water Infrastructure Finance and Innovation Act (WIFIA) loan and S&P Application.

The agreement with Urban Futures was reviewed and approved by the CCB Board on June 19, 2023, item 6.b.
 Water Fund: Appropriate $171,300 to fund the Phased Main Replacement at Cornwall Avenue, from Rena to El Camino Real (ECR). The total project cost is $750,000, the remaining portion of the project is funded with ARPA funds and discussed in additional detail below.

Finally, the reallocation of ARPA funds is included as a budget request. Previous reallocations of the City’s ARPA funds were approved at the February 8, 2022; May 24, 2022; September 27, 2022; and May 9, 2023 City Council meetings. As projects are completed and project estimates are confirmed, allocation funding numbers in Table 4 provide the City Council approved allocations spent through the end of FY 2022-23.

The third column of Table 4 shows expected spending of funds through the allotted ARPA deadline of December 31, 2024. ARPA funds must be committed by way of a contract or purchase order and spend these monies no later than December 31, 2026. The final column shows funds that need to be reallocated as a result of budgeted project savings.

Table 1 – ARPA Allocation
Staff reviewed the 5-year Capital Improvement Project Plan, accessed any other outstanding projects that were prioritized due to public health and safety related issues, and reviewed the most recent US Treasury

ATTACHMENT 1

Final Rule governing eligible expenditures of the ARPA funds. During this review the Swinging Bridge Reinforcement project was identified because the timeframe for completion of this project makes it eligible for ARPA funding. The budget request of ARPA funds is to reallocate the $356,297 to the Swinging Bridge Reinforcement project. This project is currently out to bid and is anticipated to be completed by December 31, 2024.

Through the review process is was noted that the Phased Main Replacement at Cornwall Avenue project, from Rena to El Camino Real (ECR), is funded with the Water Infrastructure Project funds but was inadvertently budgeted in FY 2026-27 with an estimated total project cost of $1 million. The Council previously approved this project to be funded with an ARPA allocation of $578,700. The phased main replacement in Cornwall Avenue, from Rena to ECR, is not anticipated to cost $1 million. The main replacement on Fair Oaks, from Elm to Alder, was 2,000 feet with more services and had a total cost of $741,841.17. The main to be replaced in Cornwall Avenue is only 1,400 feet with fewer services and considerably less traffic. The anticipated project budget is now being set at $750,000, for these reasons.

Table 5 below shows the resulting total allocations of ARPA funding if approved as recommended by the Council, after which City staff would confirm eligibility and ensure the appropriate ARPA funding conditions are attached to each project:

Table 5 – Updated ARPA Allocation

ATTACHMENT 1

AS Administrative Services
LIS Legislative and Information Services
PD Police Department
PW Public Works
Rec Recreation Services
Fire Five Cities Fire Authority
CD Community Development
Key
SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN This information is provided to keep the Council apprised of the status of the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. The four major goals are:

The following tables provide a breakdown of the Council Goal’s Work Plan by goal. Here is a key for purposes of defining each department.

Funding
Support a thriving community through fiscal responsibility, economic development efforts, and additional and alternative revenue streams.

Fire Services
Implement operational and fire and emergency service delivery improvements through the Five Cities Fire Authority, and complete the transition of services to Oceano due to its exit from the Authority.

Infrastructure
Invest in and complete critical infrastructure projects throughout the City through the strategic prioritization of projects based on available resources.

General Plan Update
Prioritize and complete major work efforts for the comprehensive General Plan update to provide a vision and framework for future development within the City.

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update
Funding 1. 1 Economic Development 1.1a Evaluate Economic Development Management Services New CMO 1Q FY2023-24 2Q FY 2023-24 In Progress

1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 3Q FY 2023-24 Not started

1.1c Support Modifications to the AGTBID New CMO/CA/RS/LIS In Progress 2Q FY 2023-24 In Progress

1.1c.i. Transition Administration to City staff New CMO/RS In Progress 1Q FY 2023-24 Complete

1.1c.ii. Complete Modifications to AGTBID Bylaws and Advisory Board Structure New CMO/CA/LIS In Progress 2Q FY 2023-24 In Progress

1.1d 400 W. Branch Disposition and Development Agreement New CMO/CA/CD In Progress 4Q FY 2023-24 In Progress

1.1e Complete Transition of Temporary Parklets to Permanent Parklets Carryover CD/PW In Progress 1Q FY2023-24 In Progress

1.1f Develop 1-3 Special Events that drive visitation during shoulder and winter months and build destination awareness New Rec In Progress 4Q FY 2023-24 In Progress

1.2 Pursue Revenue Measure 1.2a Issue an RFP for a consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed

1.2b Award contract with consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24 Completed

1.2c Conduct public outreach to the community to communicate need for additional revenue, including facilitation of a Citizen Committee Carryover CMO/LIS 1Q FY2023-24 1Q FY 2024-25 In Progress

1.2d Bring Revenue ballot measure to Council for consideration Carryover
CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 Not started

1.3 Evaluate Potential to Enable
Cannabis Businesses within City

1.3a Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO 3Q FY 2023-24 3Q FY 2023-24 Not started

1.3b Prepare and adopt cannabis ordinance, if directed by the City Council New CD/CA/CMO 3Q FY 2023-24 1Q FY 2024-25 Not started

1.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 1Q FY 2024-25 Not started Fire Services 2.1 Work with Regional Partners on
Fire Services in 5 Cities 2.1a Pursue potential contract with the County to serve Oceano New Fire/CMO 3Q FY 2023-24 4Q FY 2023-24 In Progress

2.2 Funding for Fire Services 2.2a Consider including Public Safety in proposed Revenue measure New CMO/AS/LIS 4Q FY 2024-25 4Q FY 2024-25 In Progress

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update
Infrastructure 3.1 Pursue Alternative Funding
Sources for Infrastructure Needs

3.1a Consider Community partnership for Mark M. Millis Community Center construction Carryover CMO/Rec/PW In progress 4Q FY 2023-24 In Progress

3.1b Include infrastructure in new Revenue Measure plans and outreach Carryover AS/CMO/LIS/ PW/CD 1Q FY 2023-24 4Q FY 2024-25 In Progress

3.1c Collect FEMA reimbursement for January - March 2023 storm damage New AS In progress 3Q FY2024-25 In Progress

3.1d Pursue Grant applications and administration for infrastructure projects Carryover PW/CD/AS In progress Ongoing In Progress

3.2 Work with Regional Partners on
Infrastructure Projects

3.2a Support ongoing development and financing of Central Coast Blue project Carryover CMO/AS/PW In Progress Ongoing In Progress

3.2b NCMA Management Agreement Amendments New PW 3Q FY 2023-24 Ongoing In Progress

3.3 Prioritize Key Infrastructure
Projects 3.3a Traffic Way Bridge Carryover CD/PW In progress 2Q FY 2025-26 In Progress

3.3a.i. Traffic Way Bridge Design Carryover CD/PW In progress 4 Q FY 2023-24 In Progress

3.3a.ii. Traffic Way Bridge ROW Carryover CD/PW 1Q FY 2023-24 3Q FY 2023-24 In Progress

3.3a.iii. Traffic Way Bridge Construction Carryover CD/PW 3Q FY 2024-25 2Q FY 2025-26 Not started

3.3b Swinging Bridge Rehabilitation Carryover CD/PW In progress 2Q FY 2024-25 In Progress

3.3b.i. Swinging Bridge Rehabilitation NEPA Carryover CD/PW In progress 3Q FY 2023-24 Complete

3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover CD/PW 3Q FY 2023-24 3Q FY 2023-24 Not started

3.3b.iii. Swinging Bridge Construction New CD/PW 4Q FY 2023-24 2Q FY 2024-25 Not started

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update

3.3c Halcyon Complete Streets New CD/PW Not started

3.3c.i. Halcyon Complete Streets Design acquisition New CD/PW 1Q FY 2024-25 1Q FY 2024-25 Not started

3.3c.ii. Halcyon Complete Streets ROW acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-25 In Progress

3.3c.iii. Halcyon Complete Streets Construction New CD/PW 1Q FY 2024-25 2Q FY 2025-26 Not started

3.3d ATP Development New CD/PW In Progress 3Q FY 2024-25 In Progress

3.3d.i. Award ATP Contract to Consultant New CD/PW 4Q FY 2022-23 4Q FY 2022-23 In Progress

3.3d.ii. Final Approval of ATP by Council New CD/PW 3Q FY 2024-25 3Q FY 2024-25 Not started

3.3e 2022 Pavement Management Program Construction New CD/PW 1Q FY 2023-24 2Q FY 2023-24 In Progress

3.3f 2024 Pavement Management Program Design New CD/PW 2Q FY 2023-24 3Q FY 2023-24 Completed

3.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 1Q FY 2024-25 In Progress

3.3h Community Safety Camera Network Carryover Police/CD In Progress 4Q FY 2024-25 In Progress

3.3i Replacement Generator at Station 1 New CD/PW/Fire 4Q FY 2022-23 4Q FY 2023-24 In Progress

3.3j Lift Station 3 New CD/PW 1Q FY 2023-24 1Q FY 2024-25 In Progress

3.3k AG Creek Remediation (Debris removal and bank stabilization) New CD/PW 4Q FY 2022-23 4Q FY 2023-24 In Progress

3.3l Concrete Repair Program New CD/PW 1Q FY 2024-25 4Q FY 2024-25 In Progress

3.3m Concept plan/design for new Mark M. Millis Community Center Building New CD/PW/Rec 1Q FY 2023-24 4Q FY 2023-24 Not started

3.3n CMP Lining New CD/PW 1Q FY 2024-25 Ongoing In Progress Infrastructure (continued)

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update

4.1 Public Outreach 4.1a Plan and Host a Kick-Off Meeting with Community New CD/LIS 1Q FY 2023-24 1Q FY 2023-24 In Progress

4.2 Diversity Equity Iinclusivity
Justice Lens 4.2a Management of DEIJ consultant New CD In Progress Ongoing In Progress

4.3 General Plan Elements New CD 2Q FY 2023-24 3Q FY 2024-25 Not started

4.4 Baseline Analysis of Existing
and Future Business Needs 4.4a Survey Local Businesses Carryover Action CD 1Q FY 2023-24 4Q FY 2023-24 Not started

4.4b Conduct a Retail Market Analysis New CD 1Q FY 2023-24 4Q FY 2023-24 Not started

4.5 Climate Action Plan New CD 2Q FY 2023-24 3Q FY 2025-26 Not started

4.6 Code Update 4.6a Bring code changes to Planning Commission for approval New CD 3Q FY 2025-26 3Q FY 2025-26 Not started

4.6b Bring draft Ordinance of code revision update to Council New CD 4Q FY 2025-26 4Q FY 2025-26 Not started

4.7 EIR 4.7a Complete draft EIR New CD 1Q FY 2024-25 3Q FY 2024-25 Not started

4.7b Complete final EIR New CD 3Q FY 2024-25 4Q FY 2024-25 Not started

4.8 Objective Design Standards Carryover CD/CA 1Q FY 2023-24 1Q FY 2023-24 In Progress General Plan Update

Item 9.d.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges
DATE: December 12, 2023
SUMMARY OF ACTION:

The attached report provides an accounting of fees derived from water and sewer capacity and connection fees as required by State law.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no direct financial impact from the status report other than the staff time required to prepare it, which is estimated at 2 hours. During FY 2022-23, the Water Facility Fund balance increased by $26,579. The Sewer Facility Fund balance increased by $17,614.

The Water Availability Fund decreased by $1,250,424.

RECOMMENDATION:
1) Receive and file the annual report of the receipt and use of water and sewer capacity and connection fees and charges, in compliance with Government Code Section 66013; 2) Determine that ratifying the annual report is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.).

BACKGROUND:

Government Code Section 66013 requires an annual financial accounting of the transactions dealing with water and sewer capacity and connection fees and charges.

The basic accounting and reporting responsibilities under Government Code Section 66013 require the following:

1. A description of the charges/fees deposited in the fund;

2. The beginning and ending balance of the fund and any interest earned from investment of monies in the fund;

3. The amount of charges/fees collected in the fiscal year;

Item 9.d.

City Council
Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges
December 12, 2023

4. An identification of all of the following:
a. Public improvement charges expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvements that were funded by these charges/fees if more than one source of funding was used;
b. The public improvements on which charges/fees were expended that was completed during the fiscal year;
c. Each public improvement that is anticipated to be undertaken the following fiscal year.

5. A description of each interfund transfer or loan made from the capital facilities fund.

In the case of an interfund transfer, identify the public improvements the transferred moneys are, or will be, expended. In the case of an interfund loan, the date the loan will be repaid and the rate of interest the fund will receive on the loan.

Attached to this staff report is the financial information (Attachments 1-3) required by Government Code Section 66013 and, which is current as of June 30, 2023. The information consists of beginning and ending fund balances for each fee charged by the City, including interest earned and details of all expenditures made from these sources.

Information within this report and Attachments 1-3 meet the requirements of Government Code section 66013.

ANALYSIS OF ISSUES:

The City utilizes fund accounting to segregate development related fees from other City revenues. Although the City pools its cash for investment purposes, interest income is allocated to the funds based on their respective cash balances.

The City accounts for water and sewer connection and capacity fees or charges can be found in three separate funds - the Water Facility Fund, the Sewer Facility Fund, and the Water Availability Fund. The information in Attachments 1-3 compares the revenues, expenditures, and changes in fund balances for each fund from July 1, 2013, to June 30, 2023.

The following is a description of the City funds used to track water and sewer connection and capacity fees and charges:

Water Facility (Fund 642)
Water Main Charges, enacted pursuant to the provision of Sections 13.04.050 of the City Municipal Code, are accounted for in the Water Facility Fund. These revenues are to be collected and accumulated for future water infrastructure improvements. The Water Facility Fund has accumulated $1,040,290 in unspent connection fees. There are no projects budgeted in FY 2023-24 at this time.

Sewer Facility (Fund 634)

Item 9.d.

City Council
Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges
December 12, 2023

Sewer Connection fees, enacted pursuant to the provision of Section 13.12.190 et seq. of the City Municipal Code, are collected and accumulated to help pay for improvements and future sewer system capacity as necessary to meet the needs of the City resulting from growth and expansion. The Sewer Facility Fund ended the year with a fund balance of $346,404, and the FY 2023-24 budget did not identify any projects at this time.

Water Availability Fund (Fund 241)
This fund is used to account for the accumulation of water availability charge revenues.

The Water Availability charge was enacted pursuant to the provision of Section 38743 of the Government Code, and Section 13.04.040 of the City Municipal Code. Water availability charges are imposed upon each parcel of property not served with city water.

During FY 2022-23, the City supported the preconstruction work related to the Central Coast Blue (CCB) Project. The project is ongoing. The Water Availability Fund has a fund balance of $40,851, with no projects budgeted for FY 2023-24 at this time.

ALTERNATIVES:

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

1. Approve staff’s recommendation to receive and file the annual report;

2. Do not approve staff’s recommendation and request further information; or

3. Provide other direction to staff.

ADVANTAGES:

By accepting the Water and Sewer Capacity and Connection Fees and Charges-Annual Report, the City will be complying with Government Code Sections 66013 et seq., which requires a financial accounting of the transactions dealing with water and sewer capacity and connection fees and charges (development impact fees) to be made available to the public.

DISADVANTAGES:

There are no disadvantages in relation to the recommended action.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item. Ratifying the annual report 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.

Item 9.d.

City Council
Annual Financial Report for Fiscal Year 2022-23 – Receipt and Use of Water and Sewer Capacity and Connection Fees/Charges
December 12, 2023

Attachments:

1. Statement of Fund Balances for the Water Facility Fund

2. Statement of Fund Balances for the Sewer Facility Fund

3. Statement of Fund Balances for the Water Availability Fund

ATTACHMENT 1

CITY OF ARROYO GRANDE
Water Facility Fund
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Interest Income 4,240 $ 8,045 $ 11,944 $ 2,771 $ 4,718 $ 16,285 $ 13,958 $ 1,967 $ (14,638) $ 9,539 $ Water Main Charges - - 753 665 - 66,457 105,507 48,561 7,081 17,040Distribution Charges 37,849 58,104 35,534 126,135 29,584 - - - - - Total Revenues 42,089 66,149 48,231 129,571 34,302 82,742 119,465 50,528 (7,557) 26,579 Expenditures:

Operating Expenses - - - (2,794) - - - - - -Excess of Revenues Over Expenditures 42,089 66,149 48,231 126,777 34,302 82,742 119,465 50,528 (7,557) 26,579 Other Financing Uses:

Capital Projects - (114,570) (213,000) - - - - - - -Excess of Revenues Over (Under) Expenditures andOther Financing Uses 42,089 (48,421) (164,769) 126,777 34,302 82,742 119,465 50,528 (7,557) 26,579 Fund Balance, Beginning of Year 778,555 820,644 772,223 607,454 734,231 768,533 851,275 970,740 1,021,268 1,013,711 Fund Balance, End of Year 820,644 $ 772,223 $ 607,454 $ 734,231 $ 768,533 $ 851,275 $ 970,740 $ 1,021,268 $ 1,013,711 $ 1,040,290 $ Capital Project Detail
Reservoir No 6 Construction - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Old Ranch Rd Property Improvemen 30,000 - - - - - - - - - Leanna Dr Creek Crossing Upgrade 84,570 - - - - - - - - -LePoint Area Main Upgrade - - 38,000 - - - - - - - Alpine Street Overlay & Waterline - - 175,000 - - - - - - - Total Capital Projects - $ 114,570 $ 213,000 $ - $ - $ - $ - $ - $ - $ - $ There are no current Capital Improvement Projects budgeted for this Fund in this budget cycleThere was one refund made during FY 22-23

ATTACHMENT 2

CITY OF ARROYO GRANDE
Sewer Facility Fund
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Interest Income 2,092 $ 3,864 $ 6,328 $ 2,030 $ 3,170 $ 10,934 $ 9,579 $ (60) $ (4,717) $ 3,156 $ Sewer Facility Charges 22,676 36,860 24,434 74,156 19,011 57,602 71,251 31,209 9,441 14,458 Total Revenues 24,768 40,724 30,762 76,186 22,181 68,535 80,830 31,150 4,724 17,614 Expenditures:

Operating Expenses - - - - - - - - - -Excess of Revenues Over Expenditures 24,768 40,724 30,762 76,186 22,181 68,535 80,830 31,150 4,724 17,614 Other Financing Uses:

Capital Projects (33,000) (30,000) - - - - (372,249) - - -Excess of Revenues Over (Under) Expenditures andOther Financing Uses (8,232) 10,724 30,762 76,186 22,181 68,535 (291,419) 31,150 4,724 17,614 Fund Balance, Beginning of Year 384,178 375,946 386,670 417,432 493,618 515,799 584,334 292,916 324,065 328,790 Fund Balance, End of Year 375,946 $ 386,670 $ 417,432 $ 493,618 $ 515,799 $ 584,334 $ 292,916 $ 324,065 $ 328,790 $ 346,404 $ Capital Project Detail
Lift Station No 3 Replacement - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ N. Rena Sewer Relocation 33,000 - - - - - - - - -Old Ranch Rd Property Impr - 30,000 - - - - - - - -Lift Stn No 1 Force Main Replaceme - - - - - - 372,249 - - - Total Capital Projects 33,000 $ 30,000 $ - $ - $ - $ - $ 372,249 $ - $ - $ - $ There are no current Capital Improvement Projects budgeted for this Fund in this budget cycleNo refunds were made during FY 22-23

ATTACHMENT 3

CITY OF ARROYO GRANDE
Water Availability Fund
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Interest Income 9,394 $ 19,009 $ 26,303 $ 7,021 $ 10,518 $ 30,006 $ 22,571 $ 3,038 $ (22,947) $ 12,250 $ Water Availability Charges 44,900 99,600 21,450 144,312 32,450 85,363 126,325 48,050 9,900 28,601Expense Recovery - - - - - - - - - - Total Revenues 54,294 118,609 47,753 151,333 42,968 115,369 148,896 51,088 (13,047) 40,851 Expenditures:

Operating Expenses - - - (42,179) - (83,198) (41,166) - - -Excess of Revenues Over Expenditures 54,294 118,609 47,753 109,154 42,968 32,171 107,730 51,088 (13,047) 40,851 Other Financing Uses:

Capital Projects (15,187) (26,115) (352,550) - (232,499) (75,035) - (5,059) (297,578) (1,291,275)Excess of Revenues Over (Under) Expenditures andOther Financing Uses 39,107 92,494 (304,797) 109,154 (189,531) (42,864) 107,730 46,029 (310,626) (1,250,424) Fund Balance, Beginning of Year 1,744,578 1,783,685 1,876,179 1,571,382 1,680,536 1,491,005 1,448,141 1,555,871 1,601,901 1,291,275 Fund Balance, End of Year 1,783,685 $ 1,876,179 $ 1,571,382 $ 1,680,536 $ 1,491,005 $ 1,448,141 $ 1,555,871 $ 1,601,901 $ 1,291,275 $ 40,851 $ Capital Project Detail
Lopez Spillway Feasibility Study - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water Well No 11 Facilities 15,187 26,115 352,550 - 227,957 6,654 - - - -Well Siting Study - - - - 4,542 24,396 - - - -Well 7 Evaluation - - - - - 43,985 - - - -Central Coast Blue - - - - - - - 5,059 - 1,291,275Total Capital Projects 15,187 $ 26,115 $ 352,550 $ - $ 232,499 $ 75,035 $ - $ 5,059 $ - $ 1,291,275 $ There are no current Capital Improvement Projects budgeted for this Fund in this budget cycleNo refunds were made during FY 21-22

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Interim City Manager
BY: Tashina Ureno, Human Resources Officer
Nicole Valentine, Administrative Services Director
SUBJECT: Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request
DATE: December 12, 2023
SUMMARY OF ACTION:

Adoption of a Resolution amending the Citywide Combined Salary Schedule. This updated schedule is to: one, reflect recent equity adjustments for the Five Cities Fire Authority staff, and two, reflect salary adjustments with two existing City staff classifications: Public Works Manager (2.5% increase [change from range M-47 to M-48]) and Citywide Fleet Coordinator (5% increase [change from range 36 to 38]). Finally, the City Council is being asked to approve one budget adjustment request associated with the changes to the salary schedule.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

This proposed reclassification will result in additional General Fund expenditures of $8,000 per fiscal year for salary and benefits for these two City classifications, Public Works Manager and Citywide Fleet Coordinator.

RECOMMENDATION:

Adopt a Resolution amending the Citywide Combined Salary Schedule and appropriate $4,000 from the General Fund for the balance of FY 2023-24, and direct Staff to take any steps necessary to otherwise ratify the salary change for the impacted employees.

BACKGROUND:

The City has an established salary schedule structured with banded ranges and salary steps within each range. Each job classification is assigned to a salary range within the salary schedule. The most recently approved (current) salary schedule, assigning each job classification onto the salary schedule, was approved by the City Council on September 12, 2023, which incorporated equity salary adjustment increases for the Police

Item 9.e.

City Council
Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request December 12, 2023

Officer Association (POA), the Service Employees International Union (SEIU), Management and part-time unrepresented employees groups.

The pay rate modifications were based on the results of a compensation study completed by unCOMPlicate HR, a specialized human resources consulting firm, to gather and comparatively analyze comparable organizations including nine (9) cities’ and four (4) community services districts’ salary and benefit data. The compensation study and equity adjustments were completed to ensure the City maintains the ability to attract and retain well-qualified personnel, remain competitive with comparable agencies, and to ensure pay consistency and equity based on job duties and responsibilities.

The compensation study included all 16 Management positions in that group as benchmarks and showed 13 of those positions were below the Median compared to neighboring agencies. Some Management positions did not receive a pay modification.

For context, the other bargaining groups (POA and SEIU), all positions received pay modifications.

Most of these specific Management positions that did not receive pay modifications (including Management Analyst, Deputy City Clerk/Communications Coordinator, and City Engineer) had associated salary reviews due to recent recruitments and the compensation study found these salaries to be appropriately within market. The two remaining positions, which were the Capital Improvement Project Manager and Public Works Manager, received subsequent review after the compensation study was completed. It was found for the Public Works Manager classification, more appropriate comparative matches were identified and reviewed. Based on the comparative matches, this classification was found to be 2.5% below market. This change will allow for the City to remain competitive and provide for this closely matched position to receive similar pay to the Public Works Superintendent with Grover Beach (the closest matched position and agency).

The second City staff classification adjustment, for Citywide Fleet Coordinator, is requested because this position was previously reclassified as part of a pilot program presented to the Council on October 9, 2018 and intended to be reevaluated after one year but has not since been revisited. The recent compensation study brought to light that this position needed review and updates were made to the job description to reflect the duties and responsibilities of the classification more accurately, following the initial feasibility assessment of the pilot program. When the Citywide Fleet Coordinator position was initially implemented in 2018, the position combined the fleet maintenance functions within Public Works with the highly sensitive and restricted needs of the Police Department (eliminating a then vacated part-time Fleet and Equipment Technician in the Police Department, realizing an approximate annual savings of $12,500 in 2018 and again in 2019). With the ongoing success of the Citywide Fleet position and program and increased responsibility reflected in the updated job description, an equitable adjustment for this classification to bring the position closer to the market median is recommended.

Item 9.e.

City Council
Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request December 12, 2023

This classification has been found to be 5% below market when compared to other similar positions with the same degree of responsibility, including fleet maintenance service to Police.

On October 16, 2023, the Five Cities Fire Authority (FCFA) Board approved salary adjustments for Fiscal Year 2023-24. Pursuant to the terms of the Joint Exercise of Powers Agreement that created the FCFA, all FCFA employees are employees of the City of Arroyo Grande. As a result, the City’s Salary Schedule must be amended to incorporate the salary adjustments approved by the FCFA Board.

ANALYSIS OF ISSUES:

The Government Code and California Code of Regulations require the City to maintain a single, duly approved and adopted pay schedule that identifies the positions for every employee classification. The proposed Resolution (Attachment 1) adopts a revised salary schedule incorporating adjustments for FCFA classifications, one SEIU classification (Citywide Fleet Coordinator) and one Management classification (Public Works Manager).

The minimum wage in California is scheduled to increase to $16.00 per hour effective January 1, 2024, and the City is in compliance with this upcoming change. Staff anticipates bringing forward a future proposed Combined Salary Schedule, reflecting an additional 3.5% cost of living increase for part-time employees in June 2024 for FY 2024-

25. An additional review and analysis has been completed subsequent to the implementation of the recommended adjustments detailed in the compensation study, for two classifications: Public Works Manager and Citywide Fleet Coordinator.

The Public Works Manager position is out of market by approximately 2.5% and staff recommend for Council to approve the updated salary schedule moving the Public Works Manager from range M-47 to M-48.

The Citywide Fleet Coordinator position is out of market by approximately 5% and staff recommend for Council to approve the updated salary schedule moving the Citywide Fleet Coordinator from range 36 to 38.

The proposed Resolution adopts a revised salary schedule incorporating adjustments approved by the FCFA Board as follows:
 FCFA unrepresented Management employees: The pay schedule reflects the pay increase for all positions effective October 27, 2023, as approved by the FCFA Board on October 16, 2023, by Resolution 2023-06.

Item 9.e.

City Council
Consideration of Adoption of a Resolution Amending the Citywide Combined Salary Schedule and Approving One Budget Adjustment Request December 12, 2023

 FCFA unrepresented part-time employees: The pay schedule reflects the pay increase for all positions effective October 27, 2023, as approved by the FCFA Board on October 16, 2023, by Resolution 2023-07.
 International Association of Fire Fighters (IAFF) Local 4403: The pay schedule reflects the pay increase for all positions effective October 27, 2023, as approved by the FCFA Board on October 16, 2023, by Resolution 2023-08.

ALTERNATIVES:

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

1. Adopt the Resolution as proposed, appropriate $4,000 from the General Fund for the balance of FY 2023-24, and direct Staff to take any steps necessary to otherwise ratify the salary change for the impacted employees;

2. Amend and adopt the proposed Resolution;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

Adopting the proposed Resolution and budget adjustment will provide employee salaries and benefits that are compliant with current laws, provide for consistent and fair compensation, and reflect the job duties and assignments needed throughout the City.

Adjusting employee salaries and benefits to meet the median salary comparatives from similar cities will allow for employee retention, avoid the cost of training new employees, and ultimately allow for city services to be accomplished consistently.

DISADVANTAGES:

The recommendation will increase costs to current and future budgets.

ENVIRONMENTAL REVIEW:

Approval of the Resolution 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. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Proposed Resolution – Amending the Citywide Combined Salary Schedule

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING THE UPDATED CITYWIDE

COMBINED SALARY SCHEDULE AND AUTHORIZING THE
APPROPRIATION OF $4,000 FROM THE GENERAL FUND
FOR THE BALANCE OF THE FY 2023-2024
WHEREAS, the City Council of the City of Arroyo Grande (“City”) deems it in the best interest of the City and in order to ensure compliance with State law, that compensation for employees be adjusted as hereinafter provided; and
WHEREAS, the City Council is approving equity adjustments for the Five Cities Fire Authority staff, and to reflect salary adjustments for two existing City staff classifications:

Public Works Manager and Citywide Fleet Coordinator (collectively “Impacted Employees”); and
WHEREAS, the City Council finds the adoption of this this Resolution 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. (c)(2)-(3), 15378.) NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that:

1. All Recitals are incorporated herein by reference.

2. Salary ranges for employee classifications as described herein, shall be adjusted as designated in Exhibit “A,” attached hereto and incorporated herein by this reference, to be effective for the pay period beginning December 22, 2023.

3. All other employee salary and benefit terms and conditions remain in full force and effect.

4. The City Council directs staff to take any steps necessary to otherwise ratify the salary changes for Impacted Employees.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 12th day of December, 2023.

RESOLUTION NO.

PAGE 2

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

BILL ROBESON, INTERIM CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 3

EXHIBIT A

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023

GROUP: SEIU
Position A B C D E
Office Assistant I Biweekly 1,661.07 1,744.13 1,831.33 1,922.90 2,019.05 Monthly 3,598.99 3,778.94 3,967.89 4,166.29 4,374.60
Annual 43,187.94 45,347.33 47,614.70 49,995.44 52,495.21 Accounting Clerk I Biweekly 1,702.60 1,787.73 1,877.12 1,970.97 2,069.52 Monthly 3,688.97 3,873.42 4,067.09 4,270.44 4,483.97
Annual 44,267.64 46,481.02 48,805.07 51,245.32 53,807.59 Maintenance Worker I Biweekly 1,788.80 1,878.24 1,972.15 2,070.75 2,174.29 Monthly 3,875.72 4,069.51 4,272.99 4,486.63 4,710.97
Annual 46,508.68 48,834.12 51,275.82 53,839.62 56,531.60 Office Assistant II Biweekly 1,833.52 1,925.19 2,021.45 2,122.52 2,228.65 Monthly 3,972.62 4,171.25 4,379.81 4,598.80 4,828.74
Annual 47,671.40 50,054.97 52,557.72 55,185.61 57,944.89 Accounting Clerk II Biweekly 1,974.50 2,073.22 2,176.88 2,285.73 2,400.01 Maintenance Worker II Monthly 4,278.07 4,491.98 4,716.58 4,952.41 5,200.03 Neighborhood Services Tech. Annual 51,336.88 53,903.73 56,598.92 59,428.86 62,400.30 Administrative Secretary Biweekly 2,179.47 2,288.45 2,402.87 2,523.01 2,649.16 Monthly 4,722.19 4,958.30 5,206.22 5,466.53 5,739.86
Annual 56,666.32 59,499.63 62,474.61 65,598.34 68,878.26 Senior Accounting Clerk Biweekly 2,233.96 2,345.66 2,462.94 2,586.09 2,715.39 Building Permit Tech. Monthly 4,840.25 5,082.26 5,336.37 5,603.19 5,883.35 Plan/Engineer Permit Tech Annual 58,082.97 60,987.12 64,036.48 67,238.30 70,600.22 Sports Facility Coord.

Recreation Coordinator
Maintenance Worker III
Water Services Worker Biweekly 2,347.05 2,464.41 2,587.63 2,717.01 2,852.86 Monthly 5,085.29 5,339.55 5,606.53 5,886.85 6,181.20
Annual 61,023.42 64,074.59 67,278.32 70,642.24 74,174.35 Fleet Maint. Coordinator Biweekly 2,465.87 2,589.17 2,718.63 2,854.56 2,997.29 Community Services Specialist Monthly 5,342.73 5,609.86 5,890.36 6,184.88 6,494.12 Annual 64,112.73 67,318.37 70,684.29 74,218.50 77,929.43 Public Works Lead Worker Biweekly 2,527.52 2,653.90 2,786.59 2,925.92 3,072.22 Parks Lead Worker Monthly 5,476.30 5,750.11 6,037.62 6,339.50 6,656.47 Annual 65,715.55 69,001.33 72,451.40 76,073.97 79,877.67

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
Exhibit A

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: SEIU
Position A B C D E
GIS Technician Biweekly 2,721.86 2,857.96 3,000.86 3,150.90 3,308.44 Monthly 5,897.37 6,192.24 6,501.85 6,826.95 7,168.29
Annual 70,768.46 74,306.89 78,022.23 81,923.34 86,019.51 Recreation Supervisor Biweekly 2,789.91 2,929.41 3,075.88 3,229.67 3,391.15 Streets Maintenance Supervisor Monthly 6,044.81 6,347.05 6,664.40 6,997.62 7,347.50 Parks, Tree & Landscape Supervisor Annual 72,537.67 76,164.56 79,972.79 83,971.43 88,170.00 Utilities/Water & Sewer System Supervisor
Soto Sports Complex Maint. & Coord. Supervisor
IT Specialist Biweekly 3,004.43 3,154.65 3,312.38 3,478.00 3,651.90 Assistant Engineer Monthly 6,509.60 6,835.07 7,176.83 7,535.67 7,912.45 Engineering Inspector Annual 78,115.14 82,020.90 86,121.94 90,428.04 94,949.44 Program Analyst
Citywide Fleet Coordinator
Associate Engineer Biweekly 3,399.24 3,569.20 3,747.66 3,935.04 4,131.79 Monthly 7,365.01 7,733.26 8,119.92 8,525.92 8,952.21
Annual 88,380.11 92,799.12 97,439.07 102,311.03 107,426.58 Senior Engineer Biweekly 3,660.60 3,843.63 4,035.82 4,237.61 4,449.49 Monthly 7,931.31 8,327.88 8,744.27 9,181.48 9,640.56
Annual 95,175.71 99,934.50 104,931.23 110,177.79 115,686.68

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: POA
Position A B C D E
Police Officer Biweekly 3,287.34 3,451.71 3,624.30 3,805.51 3,995.79 Monthly 7,122.58 7,478.70 7,852.64 8,245.27 8,657.54
Annual 85,470.91 89,744.45 94,231.68 98,943.26 103,890.42 Sr. Police Officer Biweekly 3,630.07 3,811.57 4,002.15 4,202.26 4,412.37 Monthly 7,865.15 8,258.40 8,671.32 9,104.89 9,560.13
Annual 94,381.74 99,100.83 104,055.87 109,258.66 114,721.60 Police Sergeant Biweekly 4,312.46 4,528.08 4,754.49 4,992.21 5,241.82 Monthly 9,343.67 9,810.85 10,301.39 10,816.46 11,357.28 Annual 112,123.98 117,730.18 123,616.69 129,797.53 136,287.40 Records Clerk Biweekly 2,097.48 2,202.35 2,312.47 2,428.10 2,549.50 Monthly 4,544.54 4,771.77 5,010.36 5,260.87 5,523.92
Annual 54,534.50 57,261.22 60,124.28 63,130.50 66,287.02 Records/Property Evidence Tech. Biweekly 2,317.30 2,433.16 2,554.82 2,682.56 2,816.69 Monthly 5,020.81 5,271.85 5,535.44 5,812.21 6,102.83
Annual 60,249.71 63,262.20 66,425.31 69,746.57 73,233.90 Police Trainee Biweekly 2,621.57 2,752.65 2,890.28 3,034.80 3,186.54 Monthly 5,680.07 5,964.07 6,262.28 6,575.39 6,904.16
Annual 68,160.85 71,568.89 75,147.34 78,904.70 82,849.94

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: FCFA IAFF
Position A B C D E
Fire Fighter Biweekly 2,872 3,015 3,166 3,324 3,490
Monthly 6,222 6,533 6,859 7,202 7,562
Annual 74,664 78,397 82,305 86,420 90,741
Fire Engineer Biweekly 3,169 3,328 3,494 3,669 3,852
Monthly 6,867 7,211 7,571 7,950 8,347
Annual 82,404 86,536 90,851 95,406 100,164
Fire Captain Biweekly 3,586 3,765 3,954 4,151 4,359
Monthly 7,770 8,158 8,566 8,995 9,444
Annual 93,240 97,890 102,797 107,936 113,333
GROUP: FCFA MANAGEMENT
Position LOW MID HIGH
Administrative Operations Manager/ Biweekly 3,473 3,848 4,223 Clerk to the Board Monthly 7,525 8,338 9,151
Annual 90,300 100,054 109,809
Battalion Chief Biweekly 5,327 5,901 6,476
Monthly 11,541 12,786 14,030
Annual 138,495 153,429 168,364
Fire Chief Biweekly 6,273 6,950 7,629
Monthly 13,591 15,059 16,526
Annual 163,094 180,706 198,317

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: MANAGEMENT
Position LOW MID HIGH
Office Assistant I Biweekly 1,654.15 1,833.23 2,012.31
Monthly 3,584.00 3,972.00 4,360.00
Annual 43,008.00 47,664.00 52,320.00
Office Assistant II Biweekly 1,826.31 2,023.85 2,221.38 Monthly 3,957.00 4,385.00 4,813.00
Annual 47,484.00 52,620.00 57,756.00
Administrative Secretary Biweekly 2,118.46 2,347.62 2,576.77 Monthly 4,590.00 5,086.50 5,583.00
Annual 55,080.00 61,038.00 66,996.00
Executive Secretary Biweekly 2,397.23 2,656.15 2,915.08 Monthly 5,194.00 5,755.00 6,316.00
Annual 62,328.00 69,060.00 75,792.00
Assistant Planner Biweekly 2,645.54 2,931.92 3,218.31
Monthly 5,732.00 6,352.50 6,973.00
Annual 68,784.00 76,230.00 83,676.00
Deputy City Clerk/ Biweekly 2,849.54 3,157.38 3,465.23
Communications Coordinator Monthly 6,174.00 6,841.00 7,508.00 Assistant Projects Manager Annual 74,088.00 82,092.00 90,096.00 Associate Planner Biweekly 2,921.08 3,236.08 3,551.08
Monthly 6,329.00 7,011.50 7,694.00
Annual 75,948.00 84,138.00 92,328.00
Management Analyst Biweekly 3,387.23 3,753.23 4,119.23
Monthly 7,339.00 8,132.00 8,925.00
Annual 88,068.00 97,584.00 107,100.00
Public Works Manager Biweekly 3,738.46 4,141.85 4,545.23 Monthly 8,100.00 8,974.00 9,848.00
Annual 97,200.00 107,688.00 118,176.00
Capital Improvement Projects Biweekly 3,832.15 4,245.69 4,659.23 Manager Monthly 8,303.00 9,199.00 10,095.00
Annual 99,636.00 110,388.00 121,140.00
Planning Manager Biweekly 3,928.62 4,352.31 4,776.00
Utilities Manager Monthly 8,512.00 9,430.00 10,348.00
Annual 102,144.00 113,160.00 124,176.00

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: MANAGEMENT
Position LOW MID HIGH
Building Official Biweekly 4,026.00 4,461.23 4,896.46
Dir of Legis and Info Services Monthly 8,723.00 9,666.00 10,609.00 Dir of Recreation Services Annual 104,676.00 115,992.00 127,308.00 Information Technology Mgr
Accounting Manager Biweekly 4,230.00 4,686.46 5,142.92
Monthly 9,165.00 10,154.00 11,143.00
Annual 109,980.00 121,848.00 133,716.00
Human Resources Officer Biweekly 4,336.15 4,803.92 5,271.69 Monthly 9,395.00 10,408.50 11,422.00
Annual 112,740.00 124,902.00 137,064.00
City Engineer Biweekly 4,904.31 5,434.85 5,965.38
Monthly 10,626.00 11,775.50 12,925.00
Annual 127,512.00 141,306.00 155,100.00
Police Commander Biweekly 5,413.85 5,998.38 6,582.92
Monthly 11,730.00 12,996.50 14,263.00
Annual 140,760.00 155,958.00 171,156.00
Director of Public Works Biweekly 6,126.92 6,788.31 7,449.69 Dir of Administrative Services Monthly 13,275.00 14,708.00 16,141.00 Dir of Community Develop Annual 159,300.00 176,496.00 193,692.00 Police Chief Biweekly 6,762.46 7,492.62 8,222.77
Monthly 14,652.00 16,234.00 17,816.00
Annual 175,824.00 194,808.00 213,792.00
Assistant City Manager/Public Biweekly 7,105.38 7,872.23 8,639.08 Works Director Monthly 15,395.00 17,056.50 18,718.00
Annual 184,740.00 204,678.00 224,616.00
City Manager Biweekly 7,842.92 8,689.62 9,536.31
Monthly 16,993.00 18,827.50 20,662.00
Annual 203,916.00 225,930.00 247,944.00

CITY OF ARROYO GRANDE

COMBINED SALARY SCHEDULE
EFFECTIVE 12/22/2023
GROUP: PART-TIME POSITIONS
POLICE DEPARTMENT Step A Step B Step C Step D
Administrative Intern (Cadet) $17.38 $18.24 $19.16 $20.12 Records Clerk $22.29 $23.40 $24.57 $25.80
Fleet & Equipment Technician $26.92 $28.27 $29.68 $31.17 Neighborhood Services Technician $24.03 $25.23 $26.49 $27.82 Training Technician $26.92 $28.27 $29.68 $31.17
Police Reserve Officer Trainee $25.70 $26.98 $28.33 $29.75 Police Reserve Officer $29.51 $30.98 $32.53 $34.16
Designated Level I Reserve Officer $36.88 $38.73 $40.66 $42.70

RECREATION SERVICES DEPARTMENT
Facility Attendant $16.07 $16.88 $17.72 $18.61
Senior Facility Attendant $17.08 $17.93 $18.83 $19.77
Sports Facility Attendant $16.07 $16.88 $17.72 $18.61
Volunteer and Program Coordinator $26.37 $27.69 $29.07 $30.53

MISCELLANEOUS
Capital Improvement Projects Manager $47.90 $51.14 $54.59 $58.24 Administrative Intern $16.87 $17.71 $18.60 $19.53
Office Assistant I $18.02 $18.92 $19.87 $20.86
Office Assistant II $21.07 $22.13 $23.23 $24.40
Sr. Office Assistant $22.18 $23.29 $24.45 $25.68
Administrative Secretary $25.35 $26.62 $27.95 $29.34
Executive Secretary $29.96 $31.46 $33.03 $34.68
Building Permit Technician $27.92 $29.32 $30.78 $32.32
Assistant Engineer $37.56 $39.44 $41.41 $43.48
Associate Engineer $42.49 $44.61 $46.85 $49.19
Planning Technician $27.92 $29.32 $30.78 $32.32
Assistant Planner $33.07 $34.72 $36.46 $38.28
Associate Planner $36.51 $38.34 $40.25 $42.26
Custodian $18.85 $19.79 $20.78 $21.82
Maintenance Worker $22.36 $23.48 $24.65 $25.88
Student Intern (seasonal) $16.07

FIVE CITIES FIRE AUTHORITY
Office Assistant II $18.81 $19.75 $20.72 $21.77
Reserve Firefighter $16.00 $17.00 $18.00

HOURLY RATE

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)
DATE: December 12, 2023
SUMMARY OF ACTION:

Consideration and acceptance of an accounting of development impact fees collected from development projects during the fiscal year ending June 30, 2023.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no direct financial impact of the status report other than the staff time required to prepare it, which is estimated at 2 hours.

RECOMMENDATION:
1) Adopt a Resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) during the fiscal year ending June 30, 2023 and 2) Determine that adopting a resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.)
BACKGROUND:

Government Code Sections 66000 et seq. (enacted via AB 1600) requires local agencies to provide an accounting of impact fees imposed on development projects. These fees (typically titled AB 1600 fees) are intended to mitigate certain impacts of development projects on City facilities and infrastructure.

The accounting and reporting responsibilities of AB 1600 require the City to provide a detailed reporting of the use of development impact fees every year and every five years in accordance with Government Code section 66001 and 66006 (beginning with FY 1997- 98). Because several of the impact fees have different reporting periods, it has been the City’s practice to report the status of Development Impact Fees on a yearly basis so as

Item 9.f.

City Council
Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)
December 12, 2023

not to miss a reporting date in error in compliance with Government Code sections 66001 and 66006.

The City must comply with two basic impact fee reporting requirements.. First, the City must report findings on the amount collected for each fee, the use of the fees, and any unexpended fees at year-end. These findings must:

1. Identify the purpose for the fee;

2. Demonstrate a reasonable relationship between the fee and the purpose for which it was charged;

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements;

4. Designate the approximate dates these funding sources are expected to be deposited into the appropriate account or fund.

When sufficient funds have been collected to complete financing of public improvements in progress but not completed, the City has 180 days to identify an approximate date by which the construction of the public improvement will begin.

The second requirement provides that the City shall establish separate capital facility accounts for development impact fees collected to fund improvements. Interest shall be earned and recorded in each account. The City is required to make available to the public the following information each year:

1. A brief description of the type of fee in the account.

2. The amount of the fee.

3. The account’s beginning and ending balance.

4. The amount of fees collected and the interest earned.

5. A description of the improvements on which the funds were expended and the amount expended on each improvement, including the percentage of the improvement funded with development impact fees.

6. An approximate date by which the construction of a public improvement will begin if the City determines that sufficient funds have been collected to complete financing on the incomplete improvement.

7. A description of each inter-fund transfer or loan made from the account, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.

8. The amount of any refunds.

Attached to the Resolution is the required financial information as of June 30, 2023 (Exhibits A-H). The information consists of beginning and ending fund balances for each Development Impact Fee charged by the City, including interest earned, and details of all expenditures made from these sources.

Item 9.f.

City Council
Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)
December 12, 2023

ANALYSIS OF ISSUES:

There are eight active Development Impact Fees identified as subject to AB 1600 reporting requirements. Three of the eight fees were required to be reported in the January 1999. Those three fees are the Traffic Signalization Fee, the Transportation Facility Fee, and the Drainage Facility Fee. The Water Neutralization Fee was first reported in 2003. The remaining four Development Impact Fees (the Fire Protection Fee, the Police Facilities Fee, the Community Center Fee, and the Park Improvement Fee) were first required to be reported in 2005. The City also charges a Park Development Fee, which is a Quimby Act Fee (Government Code 66477) and does not fall under the AB 1600 reporting requirements, so it is not included in the attached report.

The City utilizes fund accounting to track and segregate Development Impact Fees from other City revenues. Although the City pools its cash for investment purposes, interest income is allocated to each of the funds based on their respective cash balances. Staff examined the accounts to determine if any Development Impact Fees collected between January 1989 and June 30, 2023, remained unexpended. No inter-fund transfers or loans have been made to any of the Development Impact Funds. The results of this examination are shown in the exhibits to the proposed Resolution and summarized below. The approved current fees for each Development Impact Fee can be found in Attachment 2.

Traffic Signalization Fund (Fund 222)
This fee is restricted for funding the construction of traffic signal systems, signing, and other traffic control devices. Ordinance 346 was adopted in May of 1986 as a mechanism for assessing fees for new development projects in proportion to the amount of anticipated traffic generated by a given development project. These fees are restricted and eligible to fund the construction of traffic signal systems, signage, and other traffic control devices.

This development impact fee came under Government Code Section 66000 et seq. in January 1989, when AB 1600 fees were recognized. The Traffic Signalization Fund has accumulated $1,158,505 in fund balance; the FY 2023-24 budget did not identify any projects, but staff is working to update the development impact fees and will work to incorporate this funding into existing eligible projects.

Transportation Facility Impact Fund (Fund 224)
This fee is paid to protect the public health, safety, and welfare by maintaining the existing level of public services for existing and future residents within the City. This fund was established in January 1994 to track fees paid by developers for the construction of improvements to streets throughout the City. When a project serves both new and existing development, only the portion related to new development is charged against this fund.

The Transportation Facility Impact Fund has accumulated $2,732,502 in unspent impact fees. The FY 2023-24 budget did not include any projects, but staff is working to update the development impact fees and will work to incorporate this funding into existing eligible projects.

Item 9.f.

City Council
Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)
December 12, 2023

Drainage Facility Fund (Fund 231)
This fund accounts for impact fees paid by development and are restricted to improving drainage within the City. This fund was established in January 1986 to track fees collected from developers to acquire and construct drainage (storm water) facilities with a designated drainage zone attributable to new development. This development impact fee came under Government Code Section 66000 et seq. in January 1989, when AB 1600 fees were recognized. As with the Transportation Facility Impact fees, when a project serves both new and existing development, only the portion related to new development is charged against this fund. The Drainage Facility Fund balance is $5,876 and the FY 2023-24 budget did not include any projects at this time.

Water Neutralization Impact Fund (Fund 226)
This fee is collected from developers to neutralize projected water demand of development projects above historical usage amounts. This fund was established in October 1998 to account for mitigation fees collected from developers to neutralize projected water demand of development projects above historical usage amounts. When a project serves both new and existing development, only the portion related to new development is charged against this fund. The Water Neutralization Fund ended the year with a fund balance of $224,366, of which $105,000 is allocated for water rebate programs including “Cash for Grass” and Washing Machine rebates in the FY 2023-24 budget.

Fire Protection Fund (Fund 210)
This fee is to be used for facilities to house fire fighting personnel and equipment serving future development. The Impact Fee Study of March 2000 instituted the Fire Protection Fee. This fee is to be used for facilities to house fire fighting personnel and equipment serving future development. This fee was established pursuant to AB 1600. Fire Protection Fund ended the year with $389,307 in fund balance; the FY 2023-24 budget did not identify any projects at this time.

Police Protection Fund (Fund 212)
This fee provides funding for the expansion of police facilities. The Police Protection Fund was established in March 2000 to account for monies that were collected from new development for the expansion of police facilities. This fee was established pursuant to AB 1600. The Police Protection Fund has a balance of $59,571; the FY 2023-24 budget did not identify any projects at this time.

Community Center Fund (Fund 215)
The fee was enacted to ensure community center facilities are maintained at 542 square feet per thousand residents. The Impact Fee Study of March 2000 instituted the Recreation Community Center Fee. The fee was enacted to ensure community center facilities are maintained at 542 square feet per thousand residents. This fund has a balance of $29,184. The FY 2023-24 budget did not identify any projects for use of this funding at this time

Item 9.f.

City Council
Consideration of a Resolution Accepting the Status Report on Development Impact Fees (AB 1600)
December 12, 2023

Park Improvement Fund (Fund 214)
This fee is to be used to improve parklands in order to maintain 4.0 acres of neighborhood and community parks per thousand residents. This impact fee resulted from the Impact Fee Study of March 2000. This fee is to be used to improve parklands in order to maintain

4.0 acres of neighborhood and community parks per thousand residents. This fee was established pursuant to AB 1600. FY 2000-01 was the first-year monies were collected for Park Improvement. The Park Improvement Fund has a balance of $502,417; the FY 2023-24 budget incorporated ongoing maintenance, fencing repairs, and updates to the central irrigation system items into this fund.

The complete Status Report of the City’s Development Impact Fees can be found in Attachment 2 of this staff report.

ALTERNATIVES:

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

1. Adopt the Resolution accepting and filing the report;

2. Do not adopt the Resolution and request further information; or

3. Provide other direction to staff.

ADVANTAGES:

By accepting the status report on Development Impact Fees, the City will be complying with Government Code Sections 66000 et seq. that require local agencies to provide an accounting of impact fees collected from development projects.

DISADVANTAGES:

There are no disadvantages in relation to the recommended action.

ENVIRONMENTAL REVIEW:

Adopting a resolution accepting the status report on the receipt and use of Development Impact Fees (AB 1600) 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Proposed Resolution – Status Report on Development Impact Fees

2. Current Development Impact Fees

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE ACCEPTING THE STATUS REPORT ON DEVELOPMENT
IMPACT FEES (AB 1600)
WHEREAS, Government Code Section 66001 (d) requires the City to make findings once every five fiscal years with respect to any portion of a development impact fee remaining unexpended in its account five or more years after deposit of the fee; and WHEREAS, Government Code Section 66001(d) requires the City to: (1) identify the purpose to which the fee is to be put, (2) demonstrate a reasonable relationship between the fee and the purpose for which it was charged; (3) identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and (4) designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund; and
WHEREAS, Government Code Section 66006 requires the City to annually provide the public with the following information: (1) a brief description of the type of fee in the account or fund; (2) the amount of the fee; (3) the beginning and ending balance of the account or fund; (4) the amount of the fees collected and the interest earned; (5) an identification of each public improvement on which fees were expended and the amount of the expenditures, including the total percentage of the cost of the public improvement that was funded with fees; (6) a description of each interfund transfer or loan made from the account or fund; and (7) the amount of refunds made.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby accepts and files the Staff Report and Status Report on development impact fees, as reflected in Exhibit A attached and incorporated herein, and finds that they include the information required by Government Code Section 66000 et seq.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 12nd day of December 2023.

RESOLUTION NO.

PAGE 2
_________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
_________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________

BILL ROBESON, INTERIM CITY MANAGER
APPROVED AS TO FORM:
_________________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 3
Exhibit A-H

EXHIBIT A
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Traffic Signal Assessments 26,976 $ 23,338 $ 117,309 $ 130,872 $ 47,232 $ 28,799 $ 90,770 $ 57,348 $ 7,888 $ 26,396 $ Interest Income 3,197 6,576 10,917 3,631 5,689 16,693 15,892 2,134 7,804 10,546 Total Revenues 30,173 $ 29,914 $ 128,226 $ 134,503 $ 52,922 $ 45,492 $ 106,662 $ 59,482 $ 15,691 $ 36,942 $ Expenditures:

Operating Expenses - - 1,948 - 96 - - - - 31,074
Excess of Revenues Over
Expenditures 30,173 29,914 126,278 134,503 52,826 45,492 106,662 59,482 15,691 5,868 Other Financing Uses:

Capital Projects - 12,718 28,180 1,723 - - - - - -
Excess of Revenues Over
(Under) Expenditures andOther Financing Uses 30,173 17,196 98,098 132,780 52,826 45,492 106,662 59,482 15,691 5,868 Fund Balance, Beginning of Year 594,236 624,409 641,605 739,703 872,483 925,309 970,801 1,077,463 1,136,945 1,152,637Fund Balance, End of Year 624,409 $ 641,605 $ 739,703 $ 872,483 $ 925,309 $ 970,801 $ 1,077,463 $ 1,136,945 $ 1,152,637 $ 1,158,505 $ Capital Project Detail
Fair Oaks/Halcyon Rd Traffic Signal - $ - $ - $ - $ - $ - $ - $ - $ - $ 31,074 $ Oak Park/West Branch Signal - $ 12,718 $ 28,180 $ 1,723 $ - $ - $ - $ - $ - $ - $ Total Capital Projects - $ 12,718 $ 28,180 $ 1,723 $ - $ - $ - $ - $ - $ 31,074 $ Capital Project Estimated % of project funded with fees:

Oak Park/West Branch Signal - 69% 91% 2% - - - - - -
There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Traffic Signalization Fund
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT B
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Transportation Impact Fees 76,857 $ 74,358 $ 188,488 $ 366,924 $ 133,226 $ 72,178 $ 248,720 $ 151,834 $ 23,657 $ 70,925 $ Interest income 11,109 20,107 14,545 10,196 13,230 38,029 35,914 4,880 17,845 24,161 Total Revenues 87,966 94,465 203,033 377,120 146,456 110,207 284,634 156,715 41,502 95,086 Expenditures:

Operating Expenses - 16,800 29,531 - 715 - - - - -
Excess of Revenues Over
Expenditures 87,966 77,665 173,502 377,120 145,741 110,207 284,634 156,715 41,502 95,086 Other Financing Uses:

Capital Projects 128,433 284,497 1,714,300 (1,335,025) 49,217 57,465 7,124 2,532 - - Excess of Revenues Over
(Under) Expenditures andOther Financing Uses (40,467) (206,832) (1,540,798) 1,712,145 96,525 52,742 277,510 154,183 41,502 95,086 Fund Balance, Beginning of Year 2,090,906 2,050,439 1,843,607 302,809 2,014,954 2,111,479 2,164,221 2,441,731 2,595,914 2,637,416 Fund Balance, End of Year 2,050,439 $ 1,843,607 $ 302,809 $ 2,014,954 $ 2,111,479 $ 2,164,221 $ 2,441,731 $ 2,595,914 $ 2,637,416 $ 2,732,502 $ Capital Project Detail:

Brisco Road/101 Interchange 128,433 $ 284,497 $ 1,714,300 $ (1,335,025) $ 49,217 $ 57,465 $ 7,124 $ 2,532 $ - $ - $ Le Point Parking Lot - - - - - - - - - -
El Camino Real Rehabilitation - - - - - - - - - -
Total Capital Projects 128,433 $ 284,497 $ 1,714,300 $ (1,335,025) $ 49,217 $ 57,465 $ 7,124 $ 2,532 $ - $ - $ Capital Project Estimated % of project funded with fees:

Brisco Road/101 Interchange 100% 100% 100% 100% 100% 100% 100% 100% 100% 0%Le Point Parking Lot - - - - - - - - - - El Camino Real Rehabilitation - - - - - - - - - -
There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Transportation Facility Impact Fee
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT C
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Drainage Fees - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Interest Income 113 217 130 - 90 105 (14) - - -
Total Revenues 113 217 130 - 90 105 (14) - - -
Expenditures:

Operating Expenses - - - - - - - - - -
Excess of Revenues Over
Expenditures 113 217 130 - 90 105 (14) - - -
Other Financing Uses:

Capital Projects - - 21,377 (16,462) 10,975 - - - - -
Excess of Revenues Over
(Under) Expenditures andOther Financing Uses 113 217 (21,247) 16,462 (10,885) 105 (14) - - - - -
Fund Balance, Beginning of Year 21,125 21,238 21,455 208 16,670 5,785 5,890 5,876 5,876 5,876 Fund Balance, End of Year 21,238 $ 21,455 $ 208 $ * 16,670 $ 5,785 $ 5,890 $ 5,876 $ 5,876 $ 5,876 $ 5,876 $ Capital Project Detail:

Creek Presevation/Drainage Imprv - - 21,377 (16,462) 10,975 - - - - - Total Capital Projects - $ - $ 21,377 $ (16,462) $ 10,975 $ - $ - $ - $ - $ - $ Capital Project Estimated % of project funded with fees:

Creek Presevation/Drainage Imprv - - 29% 24% 100% - - - - - There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Drainage Facility Fees
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT D
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Water Neutralization Fee 37,207 $ 85,497 $ 17,777 $ 185,779 $ 84,671 $ 91,014 $ 58,019 $ 21,214 $ 17,964 $ 43,783 $ Interest Income 1,856 2,631 1,697 709 1,554 4,741 5,060 756 2,163 1,768 Transfer In - Water Fund 200,000 200,000 50,000 - - - - - - Total Revenues 39,063 288,128 219,474 236,488 86,225 95,754 63,080 21,970 20,127 45,551 Expenditures:

Operating Expenses 80,838 327,531 469,443 54,456 73,889 13,181 13,077 12,649 112,420 98,002 Excess of Revenues Over/(Under)
Expenditures (41,775) (39,403) (249,969) 182,032 12,336 82,574 50,003 9,321 (92,293) (52,451) Other Financing Uses:

Capital Projects - - - - - - - - - -
Excess of Revenues Over
(Under) Expenditures andOther Financing Uses (41,775) (39,403) (249,969) 182,032 12,336 82,574 50,003 9,321 (92,293) (52,451) - -
Fund Balance, Beginning of Year 363,991 322,216 282,813 32,844 214,876 227,212 309,785 359,788 369,110 276,817 Fund Balance, End of Year 322,216 $ 282,813 $ 32,844 $ 214,876 $ 227,212 $ 309,785 $ 359,788 $ 369,110 $ 276,817 $ 224,366 $ Capital Project Detail:

Central Irrigation System - - - - - - - - - -
Total Capital Projects - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Capital Project Estimated % of project funded with fees:

Central Irrigation System - - - - - - - - - -
There is $105,000 budgeted in FY 2023-24 for the Cash for Grass and Washer Machine rebate programs.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Water Neutralization Fees
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT E
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Impact Fees 28,404 $ 31,542 $ 14,298 $ 121,797 $ 27,801 $ 50,550 $ 99,473 $ 21,430 $ 17,767 $ 24,340 $ Interest Income 636 1,600 2,783 1,207 1,036 3,813 4,513 789 2,427 3,482 Transfers in - operating
Total Revenues 29,040 33,142 17,081 123,004 28,837 54,362 103,986 22,219 20,194 27,822 Expenditures:

Operating Expenses - - 3,023 - 74,739 - - - - -
Excess of Revenues Over
Expenditures 29,040 33,142 14,058 123,004 (45,901) 54,362 103,986 22,219 20,194 27,822 Other Financing Uses:

Capital Transfers Out - - - 76,849 - - - 23,190 - -
Excess of Revenues Over
(Under) Expendiutres andOther Financing Uses 29,040 33,142 14,058 46,155 (45,901) 54,362 103,986 (971) 20,194 27,822 - -
Fund Balance, Beginning of Year 107,420 136,460 169,602 183,660 229,815 183,914 238,276 342,262 341,291 361,485 Fund Balance, End of Year 136,460 $ 169,602 $ 183,660 $ 229,815 $ 183,914 $ 238,276 $ 342,262 $ 341,291 $ 361,485 $ 389,307 $ Capital Project Detail:

Fire Station Security Fencing $ - - $ - $ - $ - $ - $ - $ 23,190 $ - $ - $ Bond Debt Repayment - - - 76,849 - - -
$ - - $ - $ 76,849 $ - $ - $ - $ 23,190 $ - $ - $
153,698
Capital Project Estimated % of project funded with fees:

Bond Debt Repayment - - - 100% - - - - - -
There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.

Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

CITY OF ARROYO GRANDE
Fire Protection Fee

EXHIBIT F
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Impact Fees 3,900 $ 7,448 $ 8,927 $ 10,280 $ 7,170 $ 4,729 $ 12,275 $ 7,249 $ 1,616 $ 3,731 $ Interest Income 476 461 383 152 270 826 908 135 387 516 Total Revenues 4,376 7,909 9,310 10,432 7,440 5,555 13,184 7,384 2,003 4,247 Expenditures:

Operating Expenses - - 2,268 - 112 - - - - -
Excess of Revenues Over
Expenditures 4,376 7,909 7,042 10,432 7,328 5,555 13,184 7,384 2,003 4,247 Other Financing Uses:

Capital Transfers Out - 81,400 1,400 (1,400) - - - 16,890 - - Excess of Revenues Over
(Under) Expendiutres andOther Financing Uses 4,376 (73,491) 5,642 11,832 7,328 5,555 13,184 (9,506) 2,003 4,247 - -
Fund Balance, Beginning of Year 88,402 92,778 19,287 24,929 36,761 44,089 49,644 62,827 53,321 55,324Fund Balance, End of Year 92,778 $ 19,287 $ 24,929 $ 36,761 $ 44,089 $ 49,644 $ 62,827 $ 53,321 $ 55,324 $ 59,571 $ Capital Project Detail:

Evidence Rm 2nd Access $ - - $ - $ - $ - $ - $ - $ 16,890 $ - $ - $ Police Station Remodeling - 81,400 - - - - - - - - Citywide Solar Project - - 1,400 (1,400) - - - - - -
$ 81,400 - $ 1,400 $ (1,400) $ - $ - $ - $ 16,890 $ - $ - $ 81,400 (2,800)
Capital Project Estimated % of project funded with fees:

Police Station Remodeling - 4% - - - - - - - -
Citywide Solar Project - - 10% 10% - - - - - -
There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Police Protection Fee
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT G
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Impact Fees 2,036 $ 4,858 $ 859 $ 8,686 $ 1,859 $ 4,488 $ 7,188 $ 1,364 $ 1,601 $ 1,741 $ Interest Income 269 572 364 352 383 766 260 54 180 260
Expense Recovery
Total Revenues 2,305 5,430 1,223 9,038 2,242 5,254 7,449 1,417 1,780 2,001 Expenditures:

Operating Expenses - - 262 - 13 - - - - -
Excess of Revenues Over
Expenditures 2,305 5,430 961 9,038 2,230 5,254 7,449 1,417 1,780 2,001 Other Financing Uses:

Capital Transfers Out - - 60,000 (54,956) 21,490 30,652 1,088 - - - Excess of Revenues Over
(Under) Expendiutres andOther Financing Uses 2,305 5,430 (59,039) 63,994 (19,260) (25,398) 6,361 1,417 1,780 2,001 - -
Fund Balance, Beginning of Year 49,593 51,898 57,328 (1,711) 62,283 43,023 17,625 23,985 25,403 27,183 Fund Balance, End of Year 51,898 $ 57,328 $ (1,711) $ * 62,283 $ * 43,023 $ * 17,625 $ * 23,985 $ * 25,403 $ * 27,183 $ * 29,184 $ Capital Project Detail:

Elm Street Roof Replacement - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Woman's Club Kitchen Remode - - 60,000 (54,956) 21,490 30,652 1,088 - - - $ - - $ 60,000 $ (54,956) $ 21,490 $ 30,652 $ 1,088 $ - $ - $ - $ Capital Project Estimated % of project funded with fees:

Elm Street Roof Replacement - - - - - - - - - -
Woman's Club Kitchen Remode - - 100% 104% 68% 85% 100% 0% 0% 0% There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

CITY OF ARROYO GRANDE
Community Center Fee
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balances
Fiscal Years Ending June 30, 2014-2023

EXHIBIT H
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Revenues:

Impact Fees 34,936 $ 83,790 $ 14,693 $ 148,754 $ 31,837 $ 77,076 $ 124,003 $ 23,557 $ 27,723 $ 30,294 $ Interest Income 570 1,582 2,416 1,226 1,909 4,304 4,340 753 2,251 2,253 Total Revenues 35,506 85,372 17,109 149,980 33,746 81,381 128,343 24,311 29,975 Expenditures:

Operating Expenses - - 3,808 - 187 24,592 16,576 - -
Excess of Revenues Over
Expenditures 35,506 85,372 13,301 149,980 33,559 56,788 111,767 24,311 29,975 - Other Financing Uses:

Capital Transfers Out 20,000 35,000 20,000 14,967 96,943 48,543 13,168 47,921 115,620 58,249 Excess of Revenues Over
(Under) Expenditures andOther Financing Uses 15,506 50,372 (6,699) 135,013 (63,385) 8,246 98,599 (23,611) (85,646) (58,249) - -
Fund Balance, Beginning of Year 432,270 447,776 498,148 491,449 626,462 563,077 571,323 669,922 646,312 560,666 Fund Balance, End of Year 447,776 $ 498,148 $ 491,449 $ 626,462 $ 563,077 $ 571,323 $ 669,922 $ 646,312 $ 560,666 $ 502,417 $ Capital Project Detail:

Park Improvements 20,000 $ 35,000 $ 20,000 $ 14,967 $ 24,381 $ - $ 5,652 $ 22,275 $ 24,307 $ 37,646 $ Soto Sports Complex ADA Bleachers - - - - - - - 5,388 - - Soto Sports Complex Resurface Courts - - - - - - - - 40,000 - Soto Sports Complex Fencing Repairs - - - - - - - - 12,790 11,250 Soto/Elm Master Plan - - - - - - - 14,258 - -
Citywide Trash/Recycle Receptacle Repl - - - - - - - 6,000 4,418 - Strother Park Play Structure - - - - 56,412 - - - - -
Strother Park Restroom Project - - - - 16,150 56,788 - - - - ADA Drinking Fountains - - - - - - 7,516 - - -
Elm St Park Playground Structure - - - - - - - - 34,106 - Various Open Space Fire/Fuel Managem - - - - - - - - - 4,100 Central Irrigation System - - - - - - - - - 5,253
$ 35,000 20,000 $ 20,000 $ 14,967 $ 96,943 $ 56,788 $ 13,168 $ 47,921 $ 115,620 $ 58,249 $ Fiscal Years Ending June 30, 2014-2023
and Changes in Fund Balances
Comparative Statement of Revenues, Expenditures
Park Improvement Fee

CITY OF ARROYO GRANDE

EXHIBIT H
Capital Project Estimated % of project funded with fees:

Park Improvements 100% 100% 44% 100% 100% - 100% 100% 100% 100%Soto Sports Complex ADA Bleachers - - - - - - - 100% - - Soto Sports Complex Resurface Courts - - - - - - - - 100% - Soto Sports Complex Fencing Repairs - - - - - - - - 100% 100% Soto/Elm Master Plan - - - - - - - 100% - -
Citywide Trash/Recycle Receptacle Repl - - - - - - - 100% 100% - Strother Park Play Structure - - - - 35% - - - - -
Strother Park Restroom Project - - - - 93% 98% - - - -
ADA Drinking Fountains - - - - - - 100% - - -
Elm St Park Playground Structure - - - - - - - - 46% -
Various Open Space Fire/Fuel Managem - - - - - - - - - - Central Irrigation System - - - - - - - - - -
There are no current Capital Improvement Projects budgeted for this Fund in FY 2023-24.No refunds were made during FY 2022-23

Definitions:

Development Types –Residential and commercial development divided into subcategories.

Units of Development – A standard measure of the cost to provide services. The acre is the fundamental unit measure, which is divided into a smaller component, the dwelling unit (DU).

Asset Cost Per Acre – The calculated cost to provide additional services/facilities to new development.

Calls Per Unit – The number of yearly additional police calls generated by new development.

Facility Cost Per Call – The cost per call to expand current police facilities to accommodate new development.

Persons Per Unit – The number of persons expected to reside in the unit of development.

Costs Per Capita – The cost of new or additions to the current community center, on a per person basis, to maintain the current level of service of recreation facilities.

Impact Fee Per Unit – The fee to be levied per unit of development in order to recover future cost of new or expanded facilities.

Fees:

A person seeking to construct a residential or non-residential development project shall pay Development Impact Fees for fire protection, police facilities, traffic signalization, transportation facilities, community centers, park improvements, and water facilities based upon the following schedule:

ATTACHMENT 2

Development Fee per Acres Fee
Type Units Acre Per Unit Per Unit
Residential - Estate Dwelling Unit $ 2,323.00 2.500 $ 5,808.00 Residential Rural Dwelling Unit $ 2,323.00 1.000 $ 2,323.00 Residential - Single-Family Dwelling Unit $ 2,323.00 1.000 $ 2,323.00 Low- income Dwelling Unit $ 581.00 1.000 $ 581.00
Very Low-income Dwelling Unit - 1.000
Residential - Multi-Family Dwelling Unit $ 2,323.00 0.090 $ 209.00 Low- income Dwelling Unit $ 581.00 0.090 $ 52.00
Very Low-income Dwelling Unit - 0.090
Residential Mobile Home Dwelling Unit $ 2,323.00 0.120 $ 279.00 Low- income Dwelling Unit $ 581.00 0.120 $ 70.00
Very Low-income Dwelling Unit - 0.120
Commercial - General Thousand Square Feet 2,323.00 $ 0.091 $ 211.00 Commercial - Service Thousand Square Feet 2,323.00 $ 0.091 $ 211.00 Hotel/Motel Thousand Square Feet 2,323.00 $ 0.050 $ 116.00 Professional Office Thousand Square Feet 2,323.00 $ 0.077 $ 179.00 Industrial Thousand Square Feet 2,323.00 $ 0.067 $ 156.00 Development Fee per Calls Fee
Type Units Call Per Unit Per Unit
Residential - Estate Dwelling Unit $ 194.00 0.250 $ 49.00 Residential Rural Dwelling Unit $ 194.00 0.250 $ 49.00
Residential - Single-Family Dwelling Unit $ 194.00 0.750 $ 146.00 Low- income Dwelling Unit $ 48.00 0.750 $ 36.00
Very Low-income Dwelling Unit - 0.750
Residential - Multi-Family Dwelling Unit $ 194.00 1.320 $ 256.00 Low- income Dwelling Unit $ 48.00 1.320 $ 63.00
Very Low-income Dwelling Unit - 1.320
Residential Mobile Home Dwelling Unit $ 194.00 0.750 $ 146.00 Low- income Dwelling Unit $ 48.00 0.750 $ 36.00
Very Low-income Dwelling Unit - 0.750
Commercial - General Thousand Square Feet $ 194.00 3.909 $ 758.00 Commercial - Service Thousand Square Feet $ 194.00 2.273 $ 441.00 Hotel/Motel Thousand Square Feet $ 194.00 1.195 $ 232.00 Professional Office Thousand Square Feet $ 194.00 0.095 $ 19.00 Industrial Thousand Square Feet $ 194.00 0.045 $ 9.00

CITY OF ARROYO GRANDE

DEVELOPMENT IMPACT FEES
EFFECTIVE 03/27/2023
Fire Protection
Police Facilities

CITY OF ARROYO GRANDE

DEVELOPMENT IMPACT FEES
EFFECTIVE 03/27/2023
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit $ 854.00 1.2 $ 1,025.00 Residential Rural Dwelling Unit $ 854.00 1.2 $ 1,025.00 Residential - Single-Family Dwelling Unit $ 854.00 1.0 $ 854.00 Low- income Dwelling Unit $ 214.00 1.0 $ 214.00
Very Low-income Dwelling Unit - 1.0
Residential - Multi-Family Dwelling Unit $ 854.00 0.7 $ 598.00 Low- income Dwelling Unit $ 214.00 0.7 $ 150.00
Very Low-income Dwelling Unit - 0.7
Residential Mobile Home Dwelling Unit $ 854.00 0.5 $ 427.00 Low- income Dwelling Unit $ 214.00 0.5 $ 107.00
Very Low-income Dwelling Unit - 0.5
Commercial - General Thousand Square Feet $ 854.00 7.0 $ 5,978.00 Commercial - Service Thousand Square Feet $ 854.00 4.0 $ 3,416.00 Hotel/Motel Thousand Square Feet $ 854.00 1.8 $ 1,537.00 Professional Office Thousand Square Feet $ 854.00 2.8 $ 2,391.00 Industrial Thousand Square Feet $ 854.00 0.8 $ 683.00
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit $ 2,332.00 1.2 $ 2,798.00 Residential Rural Dwelling Unit $ 2,332.00 1.2 $ 2,798.00 Residential - Single-Family Dwelling Unit $ 2,332.00 1.0 $ 2,332.00 Low- income Dwelling Unit $ 583.00 1.0 $ 583.00
Very Low-income Dwelling Unit - 1.0
Residential - Multi-Family Dwelling Unit $ 2,332.00 0.7 $ 1,632.00 Low- income Dwelling Unit $ 583.00 0.7 $ 408.00
Very Low-income Dwelling Unit - 0.7
Residential Mobile Home Dwelling Unit $ 2,332.00 0.5 $ 1,166.00 Low- income Dwelling Unit $ 583.00 0.5 $ 292.00
Very Low-income Dwelling Unit - 0.5
Commercial - General Thousand Square Feet 2,332.00 $ 7.0 $ 16,324.00 Commercial - Service Thousand Square Feet 2,332.00 $ 4.0 $ 9,328.00 Hotel/Motel Thousand Square Feet 2,332.00 $ 1.8 $ 4,198.00 Professional Office Thousand Square Feet 2,332.00 $ 2.8 $ 6,530.00 Industrial Thousand Square Feet 2,332.00 $ 0.8 $ 1,866.00 Traffic Signalization
Transportation Facilities

CITY OF ARROYO GRANDE

DEVELOPMENT IMPACT FEES
EFFECTIVE 03/27/2023
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit $ 64.00 2.7 $ 173.00 Residential Rural Dwelling Unit $ 64.00 2.7 $ 173.00
Residential - Single-Family Dwelling Unit $ 64.00 2.7 $ 173.00 Low- income Dwelling Unit $ 16.00 2.7 $ 43.00
Very Low-income Dwelling Unit - 2.7
Residential - Multi-Family Dwelling Unit $ 64.00 2.0 $ 128.00 Low- income Dwelling Unit $ 16.00 2.0 $ 32.00
Very Low-income Dwelling Unit - 2.0
Residential Mobile Home Dwelling Unit $ 64.00 1.5 $ 96.00 Low- income Dwelling Unit $ 16.00 1.5 $ 24.00
Very Low-income Dwelling Unit - 1.5 -
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit $ 1,099.00 2.7 $ 2,967.00 Residential Rural Dwelling Unit $ 1,099.00 2.7 $ 2,967.00 Residential - Single-Family Dwelling Unit $ 1,099.00 2.7 $ 2,967.00 Low- income Dwelling Unit $ 275.00 2.7 $ 743.00
Very Low-income Dwelling Unit - 2.7 -
Residential - Multi-Family Dwelling Unit $ 1,099.00 2.0 $ 2,198.00 Low- income Dwelling Unit $ 275.00 2.0 $ 550.00
Very Low-income Dwelling Unit - 2.0
Residential Mobile Home Dwelling Unit $ 1,099.00 1.5 $ 1,649.00 Low- income Dwelling Unit $ 275.00 1.5 $ 413.00
Very Low-income Dwelling Unit - 1.5 -
Meter Size Fee
5/8 inch - 3/4 inch $ 1,207.00
1 inch $ 2,013.00
1 1/2 inch $ 4,027.00
2 inch $ 6,440.00
3 inch $ 12,078.00
4 inch $ 20,129.00
6 inch $ 40,278.00
8 inch $ 80,555.00
Community Centers
Park Improvements
Water Facilities

1 Item 9.g.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
November 28, 2023, 5:00 p.m.

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

CLOSED SESSION MEETING 5:00 P.M.

1. CALL TO ORDER
Mayor Pro Tem Barneich called the meeting to order at 5:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call. At the time of roll call, Mayor Ray Russom was absent.

3. FLAG SALUTE
Mayor Pro Tem Barneich led the flag salute.

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Mayor Pro Tem Barneich invited public comment. No comments were received.

5. CLOSED SESSION
City Attorney Rosen announced the City Council will recess to a closed session for the following:
a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT
Position: City Manager

2 Item 9.g.
b) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: City Attorney
Unrepresented employee: City Manager
c) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION:

Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 1 potential case.

City Council adjourned to Closed Session at 5:02 p.m.

Mayor Ray Russom joined the meeting at 5:02 p.m.

6. ADJOURNMENT
Closed Session was adjourned at 6:00 p.m.

REGULAR MEETING 6:00 P.M.
_____________________________________________________________________

1. CALL TO ORDER
Mayor Pro Tem Barneich called the Regular City Council Meeting to order at 6:02 p.m.

2. ROLL CALL
City Clerk Matson took roll call. At the time of roll call, Mayor Ray Russom was absent.

3. MOMENT OF REFLECTION

4. FLAG SALUTE
Mayor Pro Tem Barneich led the flag salute.

5. AGENDA REVIEW
City Attorney Rosen announced that Item 12.a. regarding City Manager appointment would not be heard and would come to Council on a future agenda.

5.a Closed Session Announcements
City Attorney Rosen announced that there was no reportable action, but that the Council did not complete the closed session items and will be reconvening at the end of the open session meeting to complete closed session items.

City Council Closed Session Meeting of November 17, 2023 a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT
Position: City Manager

3 Item 9.g.

City Council Closed Session Meeting of November 18, 2023 a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT
Position: City Manager
City Council Closed Session Meeting of November 28, 2023 a) PUBLIC EMPLOYMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b):

PUBLIC EMPLOYEE APPOINTMENT
Position: City Manager
b) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: City Attorney
Unrepresented employee: City Manager
c) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION:

Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9:
1 potential case.

5.b Ordinances read in title only
Moved by Mayor Pro Tem Barneich
Seconded by Council Member George
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Designating December 2023 as Peace and Nonviolence Month Mayor Pro Tem Barneich read the Honorary Proclamation Designating December 2023 as Peace and Nonviolence Month. Kathy Mink, Diversity Coalition, accepted the proclamation.

Mayor Pro Tem Barneich invited public comment. No public comments were received.

No action was taken on this item.

6.b Interim City Manager Communications

4 Item 9.g.

Interim City Manager Robeson thanked the Diversity Coalition for coming and accepting the Proclamation and for the work being done by their organization; made comments regarding the 46th Annual Turkey Trot; provided information regarding the Jingle Bell Dash and Holiday Parade; Holiday Boutique and Art in the Park; Tree Lighting and Snow events.

Interim Public Works Director/City Engineer Sweeney provided an update regarding the Village construction projects.

Mayor Pro Tem Barneich invited public comment. No public comments were received.

No action was taken on this item.

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

Mayor Pro Tem Barneich invited public comment. Speaking from the public was Alexandria Davis. No further public comments were received.

7.a MAYOR RAY RUSSOM:

1. California Joint Powers Insurance Authority (CJPIA)

2. Central Coast Blue Regional Recycled Water Authority Board

3. Five Cities Fire Authority

4. San Luis Obispo County Mayor's Meeting

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

6. Other

7.b MAYOR PRO TEM BARNEICH:

1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

7.c COUNCIL MEMBER GEORGE:

1. Five Cities Fire Authority

2. Tourism Business Improvement District Advisory Board

3. Visit SLO CAL Advisory Board

4. Other

7.d COUNCIL MEMBER GUTHRIE:

1. County Water Resources Advisory Committee (WRAC)

5 Item 9.g.

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

3. Integrated Waste Management Authority Board (IWMA)

4. REACH Economic Development Roundtable

5. Other

7.e COUNCIL MEMBER SECREST:

1. Air Pollution Control District (APCD)

2. South County Chambers of Commerce Governmental Affairs Committee

3. Other

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Pro Tem Barneich invited public comment. No public comments were received.

9. CONSENT AGENDA
Mayor Pro Tem Barneich asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion. Council Member George asked questions of staff on Item

9.g.

In response to Council questions, Community Development Director Pedrotti provided an update regarding minor modifications made to the Ordinance in Item 9.g. City Attorney Rosen clarified that there were minor changes to the Ordinance beyond what was published.

Mayor Pro Tem Barneich invited public comment. No public comments were received.

Moved by Council Member George
Seconded by Council Member Guthrie
Approve Consent Agenda Items 9.a. through 9.g., with the recommended courses of action as amended with minor changes read into the record regarding Item 9.g.

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

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

9.b Approval of Minutes

6 Item 9.g.

Approved the minutes of the Regular City Council Meeting of November 14, 2023, and the Special City Council Meetings of November 17, 2023 and November 18, 2023, as submitted.

9.c Consider a Resolution Approving TUP 23-012; Authorize the Village Holiday Parade & Jingle Bell Dash on December 3, 2023; Approve Street Closures in the Village; and Find the Action Categorically Exempt from CEQA Pursuant to Section 15304(e) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TEMPORARY USE PERMIT CASE NO. 23-012

AUTHORIZING THE VILLAGE HOLIDAY PARADE AND JINGLE BELL DASH ON SUNDAY, DECEMER 3, 2023 AND DIRECTING STAFF TO IMPLEMENT RELATED SAFETY

MEASURES INCLUDING NO PARKING ZONES AND STREET CLOSURES AND FINDING THE ACTION EXEMPT FROM CEQA".

9.d Consideration of a Two-Year Extension of the Five-Year Radar Speed Surveys for Selected City Streets
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE EXTENDING THE CERTIFICATION OF THE 2018 FIVE-YEAR RADAR SPEED SURVEY FOR SELECTED CITY STREETS"; and 2) Determined that this extension is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.e Monthly Water Supply and Demand Update
Received and filed the Monthly Water Supply and Demand Update.

9.f Consideration of the Summary Vacation of a Public Utility Easement and Acceptance of a Grant of a Sanitary Sewer Easement and Located at 605 Eman Court Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ORDERING THE SUMMARY VACATION OF A PUBLIC UTILITY EASEMENT, ACCEPTING A GRANT OF A SANITARY SEWER EASEMENT AT 605 EMAN COURT, AND MAKING A CEQA DETERMINATION REGARDING THE SAME".

9.g Consideration of Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Restrictions on Irrigated Turf and Finding This Action Exempt from the California Environmental Quality Act
1) Adopted an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 16.84 OF THE ARROYO GRANDE

MUNICIPAL CODE REGARDING RESTRICTIONS ON IRRIGATED TURF AND FINDING THE ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT"; and 2) Found that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15060(c)(2), (3), 15378, and in the alternative, State CEQA Guidelines Section 15061(b)(3).

7 Item 9.g.

10. PUBLIC HEARINGS

10.a Consider a Resolution for the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
Mayor Pro Tem Barneich read staff's recommendation to continue the Item to January 9, 2024.

Moved by Council Member Guthrie
Seconded by Council Member George
On October 24, 2023, this public hearing item was opened and continued to a date certain of November 28, 2023. Staff requests that this item be considered on January 9, 2024, and will renotice a public hearing for that date. City staff has worked with applicant to find a mutually satisfactorily date for the hearing and determined January 9, 2024 works with applicant’s availability.

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

11. OLD BUSINESS

11.a Consideration of an Award of Contract to ADT Commercial, LLC for Construction of the Public Safety Camera System Project, PW 2023-10 and Find the Action Exempt From CEQA
Interim Public Works Director/City Engineer Sweeney presented the report and responded to questions from Council.

Mayor Pro Tem Barneich invited public comment. Speaking from the public was Judy Cecchetti, and Alexandria Davis. No further public comments were received.

Moved by Council Member George
Seconded by Council Member Secrest
1) Award a contract for the Public Safety Camera System Project to ADT Commercial, LLC in the amount of $430,411, in substantially final form subject to any minor, technical or nonsubstantive changes approved by the City Manager in consultation with the City Attorney; 2) Authorize the City Manager to approve change orders of 20% of the contract amount, $86,082.21, for unanticipated costs during the construction phase of the Project; 3) Determine that the Project is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 1 exemption, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing structures, facilities, mechanical equipment, or topographical features where the project involves negligible or no expansion of existing or former use. (State CEQA Guidelines, § 15301).

8 Item 9.g.

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

12. NEW BUSINESS

12.a Appointment of City Manager and Approval of Employment Agreement (contingent on status of recruitment and pending negotiation)
City Attorney Rosen announced during Agenda Review that this item would be heard at a future Council meeting.

12.b Consideration of an Agreement with A-Town AV for the Council Chamber Audio/Video System Project Upgrade and Request to Approve a Budget Adjustment Request and Find the Action Exempt from CEQA
IT Manager Waddy presented the item. IT Manager Waddy and Jason Allen, President of ATown AV, responded to questions from Council.

Mayor Pro Tem Barneich invited public comment. Speaking from the public was Alexandria Davis. No further public comments were received.

Moved by Council Member Guthrie
Seconded by Council Member George
Approve an Agreement with A-Town AV for design and installation services for the Audio/Video system project upgrade and approve a budget adjustment request.

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

13. COUNCIL COMMUNICATIONS
Council Member George announced Giving Tuesday and encouraged everyone to give to organizations who do good in our community.

Mayor Pro Tem Barneich encouraged Central Coast Community Energy (CCCE) solar customers to request a rate comparison CCCE and PG&E.

14. ADJOURNMENT
There being no further business to come before the City Council, Mayor Pro Tem Barneich adjourned the meeting at 7:29 p.m. to the continued closed session meeting. Any reportable action will be announced at the next regular City Council meeting.

City Council adjourned at 8:44 p.m.

9 Item 9.g.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk

Item 9.h.

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Consideration of Selection of Council Member Guthrie as Mayor Pro Tem for Calendar Year 2024
DATE: December 12, 2023
SUMMARY OF ACTION:

Annual appointment of a Mayor Pro Tem to serve for the next one-year period.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no financial or staffing impact from this action.

RECOMMENDATION:

Appoint Council Member Guthrie as the Mayor Pro Tem for the next one-year period, pursuant to Council policy.

BACKGROUND:

At its December 10, 2002 meeting, the City Council established a policy regarding the selection of the Mayor Pro Tem. At that time, the City Council agreed to appoint the Mayor Pro Tem on a one-year rotational basis by seniority of those members who have not yet served as Mayor Pro Tem. In 2005, the policy was modified to include additional language to address circumstances in which two members have the same tenure on the City Council. If this situation exists, the order of rotation is then based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council. In January 2014, the policy was again modified so that newly elected and/or appointed Council Members become eligible to serve as Mayor Pro Tem after serving on the City Council for a period of one year (Attachment 1 – Section 2.3 of the City Council Handbook).

ANALYSIS OF ISSUES:

Council Member Barneich has served as Mayor Pro Tem for the 2023 calendar year.

Council Member George served as Mayor Pro Tem for the 2022 calendar year. Based on Council policy regarding seniority of those members who have not yet served as Mayor Pro Tem and the eligibility of newly elected Council Members to serve after one year on

Item 9.h.

City Council
Consideration of Selection of Council Member Guthrie as Mayor Pro Tem for Calendar Year 2024
December 12, 2023

the City Council, Council Member Guthrie would be the next in line for the position of Mayor Pro Tem for the 2024 calendar year.

ALTERNATIVES:

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

1. Appoint Council Member Guthrie as the Mayor Pro Tem for the next one-year period;

2. Do not appoint Council Member Guthrie and provide staff with direction on modifications to the policy; or

3. Provide staff direction.

ADVANTAGES:

Appointment of Council Member Guthrie as Mayor Pro Tem is consistent with Council policy, which was developed to provide an orderly and fair procedure for alternating the position of Mayor Pro Tem. The proposed recommendation is consistent with the current policy.

DISADVANTAGES:

No disadvantages have been identified regarding this item.

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. Section 2.3 of City Council Handbook

CITY COUNCIL HANDBOOK
PAGE 8

1.5 Diversity, Equity, Inclusion, and Justice
It is the mission of the City to make Arroyo Grande the best place possible for everyone who lives, works and visits Arroyo Grande. The City Council adopted Resolution 5142 adopting a Diversity, Equity, Inclusion, and Justice Policy as a commitment to support diversity, equity, inclusion, and justice in all facets of society and to model and implement the objectives within the community and City organization (Exhibit G).

2. COUNCIL ORGANIZATION & DUTIES

2.1 City Council Districts
On April 12, 2022, the City Council adopted Ordinance 713 establishing a bydistrict election system and created four (4) district boundaries (Exhibit H).

By 2024, each Councilmember will be elected by voters within their district boundary for a four-year term. The Mayor continues to be elected at-large for a two-year term.

The City Council wishes to remain united in its service to the community and will govern on an at-large basis, considering the needs and interests of the entire community. Professional management of the City will continue to be a Council-Manager form of government under the policy leadership of the City Council as a governing body. City resources will be allocated to address priorities and needs on a citywide basis with a budget adopted by the City Council as a governing body.

As customer service is a priority, any Council Member will help any member of the community who contacts them. Current practices regarding invitations of City Council Members to events and activities and appointments to committees and various bodies will remain in effect.

2.2 Newly-Elected Members
Newly-elected Council Members are sworn into office generally at a regular meeting in December following a regular municipal election.

Immediately upon election (even before being sworn into office), newlyelected Council Members are subject to the provisions of the Brown Act.

A reception is traditionally held immediately following the reorganization meeting.

2.3 Appointment of Mayor Pro Tem
The City Council appoints a Council Member as Mayor Pro Tem to serve the duties of Mayor in his/her absence.

The Mayor Pro Tem shall serve a term of one year.

The appointment of the Mayor Pro Tem takes place at the first meeting in December of each year.

It is the City Council’s policy to rotate appointment of the Mayor Pro Tem based upon the seniority of City Council Members that have not yet served in the position of Mayor Pro Tem. City Council Members become eligible to serve ATTACHMENT 1

CITY COUNCIL HANDBOOK
PAGE 9
as Mayor Pro Tem after serving on the City Council for a period of one year.

If two Members of the City Council have the same seniority, the order of rotation will be based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council.

2.4 Meeting Duties of Mayor and Mayor Pro Tem
The Mayor shall preside at the meetings of the Council. If he/she is absent or unable to act, the Mayor Pro Tem shall serve until the Mayor returns or is able to act.

In the absence of the Mayor and Mayor Pro Tem, the City Clerk shall call the Council to order, whereupon a temporary Chairperson shall be elected by the members of the Council present.

2.5 Seating Order
Following the Council reorganization, the City Clerk shall designate the seating order for the Council dais. The Mayor Pro Tem shall sit to the Mayor’s left.

2.6 Signing of City Documents
The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts/agreements and other documents which have been adopted by the City Council and require an official signature, except when the City Manager has been authorized by Council action to sign such documents. In the event the Mayor is unavailable or has a conflict of interest, the Mayor Pro Tem’s signature may be used.

2.7 Representation at Ceremonial Functions
The Mayor shall represent the Council at ceremonial functions. The Mayor may, at his/her own discretion, ask the Mayor Pro Tem or another Council Member to represent the Council at the function. Voluntary attendance at ceremonial functions by Council Members is encouraged.

2.8 Issuance of Proclamations, Commendations, Special Recognition PROCLAMATIONS AND COMMENDATIONS: All requests for proclamations are subject to the review and approval of the City Manager or his/her designee, or Mayor. Proclamations and commendations are signed by the Mayor, and are prepared in response to the type of recognition requested (which may include recognition of individuals, groups, and events of significance to the Arroyo Grande community). Proclamations and commendations may be presented at a City Council meeting or at an outside event or meeting.

Typically, requests are honored for presentation at a Council meeting only if a local representative from the requesting party can appear to accept the proclamation or certificate.

IN MEMORY OF: A meeting may be adjourned in memory of an individual at the direction of the Mayor or a member of the City Council if the Council Member submits a request to the Mayor or to the City Clerk ahead of the meeting. The announcement will be made at adjournment of the meeting.

Item 9.i.

MEMORANDUM
TO: City Council
FROM: Shannon Sweeney, City Engineer/interim Public Works Director SUBJECT: Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services
DATE: December 12, 2023
SUMMARY OF ACTION:

Award a contract for street sweeping services in substantially final form throughout the City for two years in the amount of $221,220 per year, authorize the City Manager to award two one-year extensions upon favorable performance, at the City’s discretion, and approve a budget amendment of $51,010 to address the anticipated budget deficit from the increase in contract costs through the end of FY 2023-24.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The FY 2023-24 budget includes $119,000 ($90,000 from Streets, and $29,000 from Public Works Administration) for street sweeping services. The existing street sweeping contract ends on December 31, 2023. Through the end of the existing contract, approximately $59,400 ($9,900 per month for six months) will have been spent. Street sweeping will cost $110,610 for the months of January through June of this fiscal year, if this contract is approved. The new contract will result in a budget shortfall of approximately $51,010.

These services will cost $221,220 per year in years 1 and 2, and if the available extensions are exercised, $227,776 in year 3 and $234,332 in year 4.

City staff evaluated the option of bringing these services in-house at this time to reduce the financial impact but determined that the City does not have adequate staff or the necessary equipment to perform this task in-house.

RECOMMENDATION:
1) Award a contract for street sweeping services to SP Maintenance, Inc. for the next 2 years in the amount of $442,440 ($221,220/year); 2) Authorize the City Manager to approve extensions for year 3, at $227,776, and year 4, at $234,332, upon favorable performance in the City Manager’s discretion; 3) Approve a budget amendment of $51,010 to address the anticipated budget deficit from the increase in contrast costs

Item 9.i.

City Council
Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services
December 12, 2023

through the end of FY 2023-24; and 4) Find that these services are exempt from the California Environmental Quality Act (CEQA) under the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) BACKGROUND:

Sweeping of City streets and parking lots provides the following benefits:
 Contributes to the clean and aesthetically pleasing character of the City;  Helps keep trash and pollution out of waterways such as the creeks;  Reduces maintenance by removing trash and debris before they enter the storm drain system; and
 Is a requirement of the City’s stormwater permit.

The existing street sweeping contract expires on December 31, 2023. The City does not have the specialized equipment or staff to perform these services in-house.

An Invitation to Bid was developed and posted on the City’s website and sent to five perspective bidders. Two bids were received by the bid due date of November 21, 2023, 2:00 PM. Bid results ranged from $904,548 to $1,364,107 for four years of service (Attachment 2). The higher bid was received from the City’s current vendor. That vendor submitted a letter on April 12, 2022, indicating that we should anticipate a larger than normal increase in service in the future because they are experiencing “higher than normal costs.”
ANALYSIS OF ISSUES:

Significantly higher costs were expected, due to higher fuel costs, staff wage increases, recent regulatory equipment requirements, and inflation. Additional streets associated with new development have also been added since the previous contract was established. The street sweeping schedule will be updated with streets associated with new development prior to the start of the new contract.

The proposed monthly cost of the recommended contract, $18,435, is significantly greater than the existing monthly cost of $9,900. However, the proposed monthly cost is closer to staff estimated costs to bring the service in-house at $16,328 per month, which would include purchase of a new sweeper at $800,000, depreciated over the equipment’s anticipated life span of seven years, and 56 hours a month of staff time, using a fully burdened rate of $121.50, per the City’s User Fee Study.

When considering the difficult-to-quantify costs associated with performing these tasks in-house, such as unanticipated maintenance costs, increased liability, and administrative issues, the proposed contract is reasonable. Local agencies of similar size contract out this service, while some larger cities perform this service in-house.

Item 9.i.

City Council
Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services
December 12, 2023

Year 2 has no inflation factor over Year 1. Years 3 and 4 increase by less than 3% per year.

City staff reached out to the local agencies listed as references. The City of Pismo Beach responded favorably regarding service and responsiveness. Staff is awaiting responses from the other two references.

ALTERNATIVES:

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

1. Approve staff’s recommendations, which includes authorizing the City Manager to proceed with the year 3 and year 4 extensions as appropriate;

2. Approve the contract with Council-directed modifications, which could include approval for only the first two years (which would require staff to reevaluate street sweeping services options after that time;

3. Bring services in-house;

4. Reject all bids and restructure project; this is not recommended since existing services end December 31, 2023, and this alternative would leave the City with no street sweeping services for some period of time; or

5. Provide other direction to staff.

ADVANTAGES:

Proceeding with the staff’s recommendation will maintain continuity in street sweeping services, particularly during the rainy season when such services are most important.

Authorizing the City Manager to approve extensions for years 3 and 4 reduce staff time in rebidding the project or writing staff reports to bring the topic back to City Council. The cost increases year-over-year are reasonable. Attempting to perform the task in-house would result in owning an expensive piece of equipment that is used only part-time (approximately 720 hours or 35% of the year).

Quality control provisions included in the scope of work include re-sweeping streets within 24 hours at no cost to the City if contract standards are not met. This provision of the contract can be applied if a resident’s street is missed or if an inordinate amount of debris remains after this paper passes through.

DISADVANTAGES:

New contract prices are significantly higher than existing contract prices. This increase in cost was not initially budgeted for this year. General funds are needed to make up the difference in cost.

ENVIRONMENTAL REVIEW:

These services are exempt from the California Environmental Quality Act (CEQA) under the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy,

Item 9.i.

City Council
Consideration of an Award of Contract to SP Maintenance Services, Inc. for Street Sweeping Services
December 12, 2023

mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.)
PUBLIC NOTIFICATION AND COMMENTS:

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

Attachments:

1. Proposed Agreement

2. Bid Opening Log Sheet

ATTACHMENT 1

ATTACHMENT 2

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Patrick Holub, Associate Planner
SUBJECT: Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant–Steph Wald, Creek Lands Conservation
DATE: December 12, 2023
SUMMARY OF ACTION:

Adoption of a Resolution approving CUP23-002 will allow Creek Lands Conservation to demolish old stream gauge facilities and in the same location, complete a new stream gauge improvement project that will facilitate fish passage.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Staff time and resources are typically offset by Conditional Use Permit application fees paid by the applicant. However, the applicant is requesting a fee waiver in the amount of $6,388 and staff is recommending the fee waiver be approved by City Council because of the public benefits set forth within these materials. If the fee waiver is approved, staff time and resources will be funded by the General Fund.

RECOMMENDATION:
1) Adopt a Resolution approving the proposed Conditional Use Permit and corresponding fee waiver; and 2) Determine that this project is categorically exempt per Section 15301, 15302 and 15304 of the CEQA Guidelines.

BACKGROUND:

On January 15, 2008, the San Luis Obispo County Board of Supervisors approved a Memorandum of Understanding (MOU) between the San Luis Obispo County Flood Control and Water Conservation District, Zone 3 and Central Coast Salmon Enhancement (CCSE) to modify the Arroyo Grande stream gauge, which includes a tower structure, stream gauge equipment, stairs down to the creek from the top of the bank and a concrete platform across the creek channel. The gauge measures water surface level elevations and flow (Attachment 2). The existing stream gauge has developed into a migration

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

barrier for steelhead trout, which is listed as a threatened species by the federal government. After installation of the gauge by the US Geological Survey (USGS) in the 1940s, downcutting erosion of the streambed has made the fish passage barrier increasingly more severe over time. Given the numerous studies required to implement the stream gauge improvement project and limited funding opportunities, it took several years to assemble all of the project components. Funding to implement the project occurred through the National Fish and Wildlife Foundation (NFWF) and the California Department of Fish and Wildlife (CDFW).

Central Coast Salmon Enhancement (CCSE) is a local non-profit organization formed to help communities strengthen, protect, and understand their watersheds and fisheries through education and engagement. CCSE applied for and received funding through NFWF and CDFW to implement the project.

On May 12, 2015, the City Council adopted Resolution 4658 waiving application fees in the amount of $3,623 for the Conditional Use Permit application to make the repairs to the stream gauge. Council made findings at that time that the proposed scope of work will benefit the entire community and meets multiple objectives and policies of the General Plan (Attachment 3). On August 4, 2015, the Planning Commission (PC) adopted PC Resolution 15-2232 approving Conditional Use Permit 15-001, a project with the same scope as the current application (Attachment 4). In 2015, the project’s contract manager at CDFW cancelled funding for the project due to a shortfall of $8,000. The Planning Commission’s prior approval expired on August 4, 2017.

In 2018 CCSE rebranded, and their organization is now called Creek Lands Conservation (CLC).

Staff Advisory Committee (SAC)
The SAC reviewed the proposed project on October 26, 2023. The Committee discussed road closures. neighborhood impacts, notification and permit requirements. The SAC was supportive of the project and recommended approval to the Planning Commission with conditions to obtain all necessary permits from the City and responsible agencies.

Planning Commission
The Planning Commission reviewed the proposed project on November 7, 2023, and adopted PC Resolution 23-2391 (Attachment 5). The Planning Commission was supportive of the project and approved the project as submitted.

Permit Requirements
Arroyo Grande Municipal Code Section 16.44.050.C.6, states that “Creeks shall remain in their natural state and shall not be altered unless approved by the city council in

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

conjunction with an application for a conditional use permit and permitted by other responsible agencies.” The Municipal Code thus authorizes the City Council to approve Conditional Use Permit applications that propose alterations to creeks, in contrast to how other Conditional Use Permits are approved. Under Section 166.44.050.C.6, the Planning Commission is tasked with reviewing the application as an advisory body and making a recommendation to the City Council. The applicant will be responsible for obtaining any permits required by other responsible agencies such as the California Department of Fish and Wildlife (CDFW), the National Fish and Wildlife Foundation (NFWF) and the Central Coast Regional Water Quality Control Board (CCRWQCB) prior to commencing construction.

Fee Waiver Request
CLC submitted a letter requesting a waiver of the Conditional Use Permit application fee ($6,388) for the Stream Gauge Fish Passage Improvement Project in order assist with project costs. Justification for the fee waiver request can be found in Attachment 6.

Staff is supportive of the requested fee waiver because the project, through CLC, a local non-profit organization, provides a community benefit by implementing General Plan policies related to the enhancement of natural creek functions and values, and because the improved fish habitat will benefit a federally threatened species. Furthermore, staff has determined that the project will be beneficial to the public because the health of the City’s natural ecosystems and riparian network benefit the community at large and the project helps maintain a significant and unique natural feature (Arroyo Grande Creek) that is largely owned by the City.

ANALYSIS OF ISSUES:

Project Description
CLC proposes to modify the existing broad-crested concrete weir spanning the width of the main stem of Arroyo Grande Creek. A weir is a type of small dam or barrier that stretches across the width of a creek or river and alters the flow characteristics of the water. Weirs are commonly used to measure water discharge or flow. The weir, combined with a stream gauge, was once used by the United States Geological Survey (USGS) as a gauging station and is still currently in use by the County of San Luis Obispo. The gauge consists of a tower structure, stream gauge equipment, stairs down to the creek from the top of the bank and a concrete platform across the creek channel. The worksite is about thirty-five feet (35’) below the top of the bank.

The project will lower this weir to restore reliable access to 3.3 miles of critical steelhead habitat upstream of the barrier. The barrier modification will provide passage for both adult and juvenile steelhead trout at both low and high flows by notching the weir to lower the jump height and reduce velocity. Technical details of passage and flow conditions

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

resulting from the proposed project have been vetted by an experienced team of biologists, engineers, and other scientists from a range of public agencies, non-profits, and private firms.

The project will involve accessing the site from Myrtle Street. A crane will be utilized to lower heavy machinery into the creek and remove demolished concrete. The westbound lane of Myrtle Street will need to be closed at the time the crane is deployed and removed from the site. City staff will verify that the contractor has an approved traffic control plan consistent with the requirements of the Manual on Uniform Traffic Control Devices (MUTCD). The staging area for the heavy machinery is at the top of the bank immediately upstream of the gauge. An access path for manual movement of material into and out of the creek will be created adjacent to the staging area. The new weir will be poured using a quick set concrete that requires approximately 24 hours of cure time. Water will be diverted around the project site during construction and concrete cure time. Construction is tentatively scheduled to commence in August 2024.

Special care will need to be taken by the engineering and construction teams with the rock slope on the south bank, which may not be connected to the outfall structure in the channel bed. If the rock slope is not correctly connected, it could be affected when the stream channel naturally adjusts to the new weir elevation during winter flows. To prevent any impacts to the rip rapped slope, an exploration trench at the toe of the existing rip rapped slope is proposed to confirm the depth of the existing embedment. After inspection by the engineer, the contractor will either backfill and compact the trench or extend the trench along the entire base of the existing rip rapped slope and backfill with four (4) ton rock.

Specific construction activities of the project include:
 Establishing access and equipment staging areas;
 Installing Best Management Practices (BMPs) for stormwater management;  Installing and removing water diversion;
 Clearing and grubbing the site and removing debris;
 Demolishing weir concrete;
 Excavating bedrock and native soil;
 Building forms and pouring concrete to build concrete weir and grade control; and  Re-vegetating disturbed areas of the project site.

Because there is state grant funding, there will be consistent and thorough pre- and postconstruction monitoring and reporting of sensitive biological resources.

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

Conditions of Approval
The prepared Resolution includes conditions of approval that address concerns identified by staff. Specifically, these conditions include:
 The applicant is conditioned to obtain an encroachment permit and provide an acceptable traffic control plan for diverting pedestrian and vehicle traffic while the crane is being deployed and removed at the end of construction.  Noise impacts – Water from the creek will be re-routed around the work area by using a sump pump. To mitigate noise impacts related to the operation of the pump, the applicant has elected to install a temporary power pole near the construction site to eliminate the need for a generator and the accompanying noise impacts to nearby residents. The applicant is required to provide additional information concerning pumping requirements, pumping hours of operation, who to call with noise complaints, and the size of the pump.  Neighborhood notification – It was anticipated that work will commence in August 2024. The applicant will be required to notify all neighbors located within a 500- foot radius of the project area at least thirty (30) days prior to earthmoving activities.  Other agency permits – The project is conditioned to obtain permits from CDFW, NFWF and CCRWQCB prior to commencing earthmoving operations.  Impacts to biological resources – The project does not include any tree removal, although trimming of several willow trees will be necessary. The project will also involve grubbing, which will require removal of some riparian vegetation. A vegetation restoration plan has been submitted. Mitigation monitoring will occur throughout the project construction to protect any potential threatened or endangered plant or animal species.
 Stormwater Control Measures – The project is conditioned to prepare a Stormwater Pollution Prevention Plan/Erosion Control Plan prior to the commencement of any earthmoving activities.
 Fence – The fence located along Myrtle Street where access to the site will occur will be temporarily removed to allow a crane and heavy equipment into and out of the project site. The fence will be replaced when the work is complete.

General Plan Consistency
The Project is consistent with General Plan Objective C/OS2, which aims to: “Safeguard important environmental and sensitive biological resources contributing to healthy,

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

functioning ecosystems.” The Project is also consistent with General Plan Implementing Policy C/OS2-1.6: “Plan, design, and develop sites to: Protect scenic resources, water quality and natural creekside habitat, including opportunities for wildlife habitation, rest, and movement. Further the restoration of damaged or degraded habitat, especially where a continuous riparian habitat corridor can be established.” The project serves the public purpose of implementing general plan policies to enhance natural creek functions and values by providing erosion control, sedimentation prevention, enhancement of riparian habitat corridors, water quality protection and aesthetic and recreational opportunities.

ALTERNATIVES:

1. Adopt a Resolution recommending approval of the proposed project to the City Council and determine that this project is categorically exempt per Section 15301, 15302, and 15304 of the CEQA Guidelines;

2. Do not adopt a Resolution recommending approval of the proposed project; or

3. Provide other direction to staff.

ADVANTAGES:

Approving the Stream Gauge Fish Passage Improvement project will restore reliable access to 3.3 miles of critical habitat upstream of the stream gauge for steelhead trout, which is listed as an endangered species.

DISADVANTAGES:

Impacts related to this project include minor temporary impacts to traffic on Myrtle Street and construction related noise during construction.

ENVIRONMENTAL REVIEW:

This Project is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15301 (Existing Facilities). This exemption consists of the operation, repair, maintenance or minor alterations to existing public or private structures involving negligible or no expansion of existing or former use.

This includes maintenance of artificial wildlife waterway devices to protect fish and wildlife resources. Here, the Project involves the operation, repair, and minor alteration to the existing stream gauge that involves little to no expansion of the existing use. Further, the stream gauge will continue to be used for its original purpose of gathering water level data, while improving the critical steelhead trout habitat.

Alternatively, the Project is exempt from review under CEQA pursuant to State CEQA Guidelines Section 15302 (Replacement or Reconstruction). This exemption consists of the replacement or reconstruction of existing structures where the new structure will be

Item 10.a.

City Council
Consideration of CUP23-002; AG Creek Stream Gauge Fish Passage Improvement, Requested Fee Waiver and Finding Action Exempt from Review Under CEQA Pursuant to State Guidelines § 15301, 15302, & 15304; Applicant– Steph Wald, Creek Lands Conservation
December 12, 2023

located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The Project will involve the reconstruction of the stream gauge, located on the same site as the existing stream gauge, and will have the same purpose of gathering water level data on Arroyo Grande Creek. Once complete, the project will improve the steelhead trout habitat with the same capacity as the existing structure.

Lastly, the Project is exempt from review under CEQA pursuant to State CEQA Guidelines Section 15304 (Minor Alterations to Land). This exemption consists of minor alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees. This includes minor alterations in land and water to fish production facilities which result in improvement of habitat for fish and wildlife resources or greater fish production. Here, the Project involves reconstruction of the stream gauge that will lead to the improvement of habitat for the steelhead trout.

None of the exceptions to the categorical exemptions set forth in State CEQA Guidelines section 15300.2 have any applicability here. The Project will not impact any environmental resource of hazardous or critical concern, will not result in significant cumulative impacts, is not subject to any unusual circumstances that could result in a significant environmental impact, would not damage any scenic resources within a scenic highway, is not located on a hazardous waste site identified on any list compiled pursuant to Government Code section 65962.5, and would not impact an historical resource.

Staff is directed to file the corresponding Notice of Exemption within five working days from the approval of this Project.

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. A public hearing notice was posted at the project site, published in the Tribune and mailed to property owners within 300 feet of the project site.

Attachments:

1. Proposed Resolution

2. Memorandum of Understanding

3. City Council Resolution 4658

4. PC Resolution 15-2232

5. PC Resolution 23-2391

6. Fee Waiver Request

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING CONDITIONAL USE
PERMIT NO. 23-002 TO IMPLEMENT A STREAM GAUGE

FISH PASSAGE IMPROVEMENT PROJECT ON PROPERTY

LOCATED WITHIN ARROYO GRANDE CREEK IN

PROXIMITY TO CLARENCE AVENUE AND MYRTLE
STREET (APN 077-572-031), APPLIED FOR BY CREEK

LANDS CONSERVATION (CLC), APPROVING THE

REQUESTED FEE WAIVER, AND FINDING THE PROJECT

EXEMPT FROM CEQA
WHEREAS, the City Council of the City of Arroyo Grande has considered Conditional Use Permit No. 23-002, applied for by CLC to modify an existing broadcrested weir spanning the width of Arroyo Grande Creek (“Project”); and WHEREAS, the funding for the Project was received from the National Fish and Wildlife Foundation (NFWF) and the California Department of Fish and Wildlife (CDFW); and
WHEREAS, CLC applied for and received funding through NFWF and CDFW to implement the proposed Project which will lower the weir and restore reliable access to

3.3 miles of critical steelhead habitat upstream of the barrier; and WHEREAS, the City Council has reviewed the project in compliance with CEQA and has determined that the project is exempt based upon Sections 15301, 15302, and 15304 of the State CEQA Guidelines for the reasons articulated below; and WHEREAS, the Project is consistent with General Plan Objective C/OS2, which aims to “[s]afeguard important environmental and sensitive biological resources contributing to healthy, functioning ecosystems.” The Project is also consistent with General Plan Implementing Policy C/OS2-1.6: “[p];an, design, and develop sites to:

Protect scenic resources, water quality and natural creekside habitat, including opportunities for wildlife habitation, rest, and movement. Further the restoration of damaged or degraded habitat, especially where a continuous riparian habitat corridor can be established;” and
WHEREAS, on December 12, 2023, the City Council conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the proposed ordinance. Following the public hearing, the City Council to adopt the prepared Resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande finds, determines, resolves, and recommends:

RESOLUTION NO.

PAGE 2
-2-

1. Recitals. All recitals above are true and correct and hereby incorporated by reference.

2. CEQA. This Project is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15301 (Existing Facilities). This exemption consists of the operation, repair, maintenance or minor alterations to existing public or private structures involving negligible or no expansion of existing or former use. This includes maintenance of artificial wildlife waterway devices to protect fish and wildlife resources. Here, the Project involves the operation, repair, and minor alteration to the existing stream gauge that involves little to no expansion of the existing use. Further, the stream gauge will continue to be used for its original purpose of improving the critical steelhead trout habitat.

Alternatively, the Project is also exempt from review under CEQA pursuant to State CEQA Guidelines Section 15302 (Replacement or Reconstruction).

This exemption consists of the replacement or reconstruction of existing structures where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The Project will involve the reconstruction of the stream gauge, located on the same site as the existing stream gauge, and will have the same purpose of improving the steelhead trout habitat with the same capacity as the existing structure.

Lastly, the Project is exempt from review under CEQA pursuant to State CEQA Guidelines Section 15304 (Minor Alterations to Land). This exemption consists of minor alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees. This includes minor alterations in land and water to fish production facilities which result in improvement of habitat for fish and wildlife resources or greater fish production. Here, the Project involves reconstruction of the stream gauge that will lead to the improvement of habitat for the steelhead trout.

None of the exceptions to the categorical exemptions set forth in State CEQA Guidelines section 15300.2 have any applicability here. The Project will not impact any environmental resource of hazardous or critical concern, will not result in significant cumulative impacts, is not subject to any unusual circumstances that could result in a significant environmental impact, would not damage any scenic resources within a scenic highway, is not located on

RESOLUTION NO.

PAGE 3
-3-
a hazardous waste site identified on any list compiled pursuant to Government Code section 65962.5, and would not impact an historical resource.

Staff is directed to file the corresponding Notice of Exemption within five working days from the approval of this Project.

3. Conditional Use Permit Findings:
a) 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 stream gauge improvement 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.
b) 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 stream gauge improvement 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 after construction along with biological monitoring.
c) The site is suitable for the type and intensity of use or development that is proposed.

The site is an existing stream gauge that will be improved to remove a fish passage barrier. The type of development is suitable for the location near the creek and will be monitored by various responsible agencies. d) There are adequate provisions for water, sanitation, and public utilities and services to ensure public health and safety.

The project involves completing a stream gauge replacement in Arroyo Grande Creek. 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.
e) The proposed use will not be detrimental to the public health, safety or

RESOLUTION NO.

PAGE 4
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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 with City conditions of approval specifically developed for the project as well as monitoring conditions required of the project’s funding sources.

4. Fee Waiver.
a) The proposed fee waiver request of $6,388 otherwise required for project is granted by the City Council because the project:
i. Serves a public purpose of promoting the public health, safety, and general welfare by:
1) Implementing general plan policies to enhance natural creek functions and values by providing erosion control, sedimentation prevention, enhancement of riparian habitat corridors, water quality protection and aesthetic and recreational opportunities; and
2) Improving habitat for a federally threatened fish species. ii. Serves a public purpose by safeguarding important environmental and sensitive biological resources contributing to a healthy, functioning ecosystem.

5. Severability. If any section, division, sentence, clause, phrase or portion of this resolution or the document in the record in support of this resolution is determined by a court of competent jurisdiction to be invalid, unenforceable, unconstitutional or otherwise void, that determination shall not affect the validity of the remaining sections, divisions, sentences, clauses, phrases of this Resolution.

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 adopted this 12th day of December, 2023.

RESOLUTION NO.

PAGE 5
-5-
_______________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
_______________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
______________________________________

BILL ROBESON, INTERIM CITY MANAGER
APPROVED AS TO FORM:
_______________________________

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 6
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EXHIBIT A

CONDITIONS OF APPROVAL
CONDITIONAL USE PERMIT 23-002

AG CREEK STREAM GAUGE REPLACEMENT 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 December 12, 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 December 12, 2023, 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 City’s discretionary approvals associated with this project, 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 Code Section 16.08.100.

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.

RESOLUTION NO.

PAGE 7
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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). This shall include City approval of a traffic control plan for the partial closure of Myrtle Street.

12. At least thirty (30) days prior to commencement of any earthmoving activities, the applicant shall notify all neighbors located within a 500’ radius of the project area. The notification shall include information about the construction schedule and location of the staging area.

13. Prior to issuance of an Encroachment Permit, submit property owner authorization for staging and construction areas.

14. Construction activities shall be limited to 8:00 AM – 5:00 PM Monday through Friday (no construction on Saturdays or Sundays).

15. The applicant shall submit evidence of obtaining permits from all resource agencies that have regulatory authority over this project.

16. The applicant shall submit a Stormwater Pollution Prevention Plan/Erosion Control Plan prior to any earthmoving activities.

17. The applicant shall restore the site access area to pre-construction condition.

18. The applicant shall coordinate project work with the County Flood Control District.

19. The applicant shall submit a creek bypass plan, including any pumping requirements, pump hours of operation, pump storage, who to call with noise complaints, and the size of the pump. CDFW shall be responsible for approving the bypass plan.

20. The applicant shall adhere to all conditions of approval associated with permits issued by CDFW, NFWF and other responsible agencies.

21. The applicant shall be responsible for replacing in-kind any fencing that is removed as part of this project.

22. If it is determined that the rock slope on the southern creek bank is not connected to the outfall structure, the applicant shall obtain all necessary permits to complete the work.

RESOLUTION NO.

PAGE 8
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EXHIBIT B

PROJECT PLANS

Exhibit B

ATTACHMENT 2

RESOLUTION NO. 4658

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING A WAIVER OF THE

PLANNING APPLICATION FEE FOR CONDITIONAL USE
PERMIT 15-001; LOCATION — ARROYO GRANDE CREEK

IN PROXIMITY TO CLARENCE AVENUE AND MYRTLE
DRIVE (APN 007-572-029 AND 007-572-031); APPLICANT -
CENTRAL COAST SALMON ENHANCEMENT, INC. ( CCSE)
WHEREAS, CCSE has submitted Conditional Use Permit 15- 001 for the Stream Gauge Fish Passage Improvement Project (the "Project") that will lower an existing broad- crested concrete weir spanning the width of Arroyo Grande Creek to restore reliable access to 3. 3 miles of critical steelhead trout habitat upstream of the concrete barrier; and WHEREAS, the applicant has requested a waiver of the Conditional Use Permit application fee; and
WHEREAS, the City Council has considered the requested waiver of the planning application fee associated with Conditional Use Permit 15-001 at a meeting on May 12, 2015; and
WHEREAS, CCSE has partnered with the City at no cost over the past several years on many projects, including:

Provision of watershed education programming accomplished within the City limits for use in the City's stormwater permit annual reporting; Partnering on Creek Day clean- up events;
Ivy removal events;
Initiation of the Arroyo Grande Creek Memorandum of Understanding (MOU) group to coordinate/cooperate on projects that benefit the City ( e. g. the Tally Ho Restoration project);
Completion of the Arroyo Grande Creek Watershed Management Plan which helped to inform the City's Creek Resource Protection Study; Provision of language for use in developing signage for the bioswale behind the previous location of City Hall;
Developing funding and implementing plans for two - creek aligned trails to complement the City's larger creek trail system; and
WHEREAS, Objective C/OS2 of the Arroyo Grande General Plan specifies that the City is to safeguard important environmental and sensitive biological resources contributing to healthy, functioning ecosystems; and
WHEREAS, Implementing Policy C/OS2- 1. 6 of the Arroyo Grande General Plan states that the planning, design, and development of sites should include the protection of scenic resources, water quality and natural creekside habitat, including opportunities for wildlife habitation, rest, and movement, and that the restoration of damaged or degraded ATTACHMENT 3

RESOLUTION NO. 4658
PAGE 2
habitat should also be implemented, especially where a continuous riparian habitat corridor can be established; and
WHEREAS, the City Council finds, after due study and deliberation, that granting the requested waiver of the planning application fee associated with Conditional Use Permit 15- 001 will help CCSE to enhance native steelhead trout habitat by applying the $ 3,623 application fee towards removing a critical obstacle to upstream steelhead trout migration; and
WHEREAS, the Project serves the public purpose of furthering the preservation of the wild salmon, steelhead trout and other deteriorating fish habitat; and WHEREAS, CCSE is a non- profit entity and a waiver of the application fee will allow CCSE to implement the Stream Gauge Passage Improvement project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby grants a waiver of the planning application fee associated with Conditional Use Permit 15- 001 in the amount of$ 3,623.

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

AYES: Council Members Guthrie, Barneich, Brown, Harmon, and Mayor Hill NOES: None
ABSENT: None
the foregoing Resolution was adopted this
12th
day of May, 2015.

RESOLUTION NO.

PAGE 3

JIM ILL, MAYOR
ATTEST:

KELLY TM E, CITY CLERK
APPR z ( D • ` 9 CONTENT:
k- I* siiiilk,,,,,..

ROBE` cFAL , I ' TERIM ANAGER
APPROVED A 0 FORM:

HEATHER K. WHITHAM, CITY ATTORNEY

OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4658 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 12th day of May, 2015.

WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of May, 2015.
l

KELL WE ORE, CITY CLERK

RESOLUTION NO. 15 -2232

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF ARROYO GRANDE APPROVING CONDITIONAL USE
PERMIT NO. 15 -001 TO IMPLEMENT A STREAM GAUGE FISH

PASSAGE IMPROVEMENT PROJECT FOR PROPERTY

LOCATED WITHIN ARROYO GRANDE CREEK IN PROXIMITY
TO CLARENCE AVENUE AND MYRTLE DRIVE (APN 007 -572-
029 AND 007 - 572 -031), APPLIED FOR BY CENTRAL COAST
SALMON ENHANCEMENT, INC. ( CCSE)
WHEREAS, the Planning Commission of the City of Arroyo Grande has considered Conditional Use Permit No. 15 -001, applied for by CCSE to modify an existing broad - crested concrete weir spanning the width of Arroyo Grande Creek; and WHEREAS, funding for the project occurred through the 2014 Fisheries Restoration Grant Program ( FRGP), which is administered by the California Department of Fish and Wildlife CDFW); and
WHEREAS, FRGP was established in 1981 in response to rapidly declining populations of wild salmon and steelhead trout and deteriorating fish habitat in California; and WHEREAS, CCSE applied for and received funding through FRGP to implement the proposed project which will lower the weir and restore reliable access to 3. 3 miles of critical steelhead habitat upstream of the barrier; and WHEREAS, the Planning Commission held a public hearing on this application on August 4, 2015 in accordance with City Code and found that the project is consistent with the General Plan and the environmental document associated therewith; and WHEREAS, the State Water Resources Control Board ( State Water Board) is the lead agency for determining adequate environmental review under the California Environmental Quality Act ( CEQA) for the FRGP and adopted a Mitigated Negative Declaration ( MND); and
WHEREAS, the Planning Commission has reviewed this project in compliance with CEQA and has determined that the MND prepared for FRGP is adequate for addressing environmental concerns for the stream gauge fish passage improvement project; and WHEREAS, the Planning Commission finds after due study, deliberation and public hearing, the following circumstances exist:

Conditional Use Permit Findings:

1. The proposed use is permitted within the Public Facility zoning district pursuant to Development Code Section 16.44.040, and complies with all applicable provisions of the Development Code, the goals and objectives of the Arroyo Grande General Plan, and the development policies and standards of the City. Specifically, the ATTACHMENT 4

RESOLUTION NO. 15 -2232
PAGE 2
project is consistent with General Plan Objective C /OS2, which states: " Safeguard important environmental and sensitive biological resources contributing to healthy, functioning ecosystems." The Project is also consistent with General Plan Implementing Policy C/ OS2 - 1. 6: " Plan, design, and develop sites to: Protect scenic resources, water quality and natural creekside habitat, including opportunities for wildlife habitation, rest, and movement. Further the restoration of damaged or degraded habitat, especially where a continuous riparian habitat corridor can be established."

2. The proposed use will not impair the integrity and character of the district in which it is to be established or located due to the purpose and intent of the Public Facility district, which is to designate land for the conduct of public, quasi - public, and institutional activities, including the protection of areas needed for such future facilities. The project serves the public purpose of furthering the preservation of wild salmon, steelhead trout and other deteriorating fish habitat by removing a concrete barrier within Arroyo Grande Creek.

3. The site is suitable for the type and intensity of use that is proposed and will not result in any adverse impacts on adjacent land uses.

4. The use does not require the provision for water, sanitation, or public utilities and services and will not impact public health and safety.

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 project is consistent with the Municipal Code and is conditioned to minimize potential noise impacts to the surrounding neighborhood.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby approves Conditional Use Permit No. 15 -001, 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 of Commissioner Mack, seconded by Commissioner Fowler- Payne, and on the following roll call vote, to wit:

AYES: Mack, Fowler -Payne and Martin
NOES: None
ABSENT: Keen, George

RESOLUTION NO. 15 -2232
PAGE 3
the foregoing Resolution was passed and adopted this
4t"
day of August, 2015.

ATTEST:

DEBBIE WEICHINGER

SECRETARY TO THE COMMISSION
AS TO CONTENT:

TE EM CLISH

DIRECTOR OF COMMUNITY DEVELOPMENT

GLENN MARTIN

COMMISSIONER