Arroyo Grande City Council
May 14, 2024

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, May 14, 2024, 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 and streamed on the City's YouTube Channel.

CLOSED SESSION:

None.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
Recommended Action:

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 Honorary Proclamation Declaring May 2024 as "National Foster Care Awareness Month"

6.b Honorary Proclamation Declaring May 2024 as "ALS Awareness Month"

6.c Honorary Proclamation Declaring May 19-25, 2024 as "National Travel and Tourism Week"

6.d City Manager Communications
(DOWNING)
Recommended Action:

Receive correspondence/comments as presented by the 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:

Review and ratify the attached listing of cash disbursements for the period of April 1 through

April 15, 2024.

9.b Consideration of Statement of Investment Deposits
(VALENTINE)
Recommended Action:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of March 31, 2024, as required by Government Code Section 53646(b).

9.c Fiscal Year 2023-24 Third Quarter Status Report and Budget Adjustment Requests (VALENTINE)
Recommended Action:

Consider, receive, and file the Fiscal Year (FY) 2023-24 Third Quarter Financial Status Report (the “Third Quarter Report”) and approve Two Budget Adjustment Requests.

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

Approve the minutes of the Regular City Council Meeting of April 23, 2024, as submitted.

9.e Consider Adoption of Resolutions Ordering the Preparation and Filing of Annual Engineer’s Reports for the Parkside Village & Grace Lane Assessment Districts, & the Landscaping & Lighting District No. 1, Within Tract 1769, for FY 2024-25 Recommended Action:
1) Adopt Resolutions ordering the preparation and filing of Annual Engineer’s Reports for the Parkside Village Assessment District (“Parkside Village”), Grace Lane Assessment District (“Grace Lane”), and Landscaping and Lighting Assessment District No. 1, within Tract 1769 (“Tract 1769”), for FY 2024-25; and
2) Determine that adopting the Resolutions ordering the Engineer’s reports 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.)

9.f Consider Traffic Way Bridge Temporary Construction Easement Execution (ROBESON)
Recommended Action:

Authorize the City Manager to fully execute temporary construction easements (TCEs) for certain real property, more particularly described as Assessor Parcel Numbers 006-311- 056, 007-482-026, 007-481-007, 007-481-008, 007-481-009, 007-482-020, and 007-482- 018, that are necessary for the Traffic Way Bridge Replacement Project.

10. PUBLIC HEARINGS

10.a Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
(PEDROTTI)
Recommended Action:
1) Introduce an Ordinance amending Section 16.16.200 of the Arroyo Grande Municipal

Code regarding public art, including but not limited to, murals; 2) Adopt a Resolution amending the Public Art Guidelines and Public Art Donation Program; and
3) Determine that the amendments to the Public Art Guidelines and Public Art Donation Program are not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3).

11. OLD BUSINESS

11.a Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
(ROBESON)
Recommended Action:

Provide direction to staff regarding implementation of City Council input regarding City water supply and Central Coast Blue Member Agency Status. As a follow up to the April 9, 2024 City Council discussion, staff recommends that the City withdraw from the Central Coast Blue Regional Recycled Water Authority Joint Powers Agreement, proceed with Water Master Plan and Water Utility Plan updates once these items are approved in the FY 2024-25 budget, and defer a State Water ballot measure until at least 2026.

12. NEW BUSINESS

12.a Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure (VALENTINE)
Recommended Action:

Review and provide direction on financing options related to the top three priorities from the Community Priorities Survey Results and consider directing staff to prepare a resolution and ordinance for City Council consideration at the May 28, 2024 meeting, to place a 1% Transaction and Use (“sales tax”) measure on the November 5, 2024 ballot.

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 streamed live on the City's YouTube Channel and recorded for replay on Arroyo Grande’s Government Access Channel 20.

Item 6.a.

Item 6.b.

Item 6.c.

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Cash Disbursement Ratification DATE: May 14, 2024
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of April 1 through April 15, 2024.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,312,718.63 fiscal impact for the period of April 1 through April 15, 2024, that includes the following items:
 Accounts Payable Checks $ 832,832.81
 Payroll & Benefit Checks $ 479,885.82
BACKGROUND:

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

ANALYSIS OF ISSUES:

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

ALTERNATIVES:

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

Item 9.a.

City Council
Consideration of Cash Disbursement Ratification
May 14, 2024

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. April 1 through April 15, 2024 – Accounts Payable Check Register

2. April 5, 2024 – Payroll & Benefit Check Register

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name1 04/02/2024 300670 $ 5,515.63 POSTAGE FOR SPRING ACTIVITY GUIDE 010.4421.5504 US POSTMASTER2 04/05/2024 300671 72.00 BAC TEST-FIRE LINE 211 E BRANCH 640.4710.5310 ABALONE COAST ANALYTICAL INC3 04/05/2024 300673 80.72 TRASH BAGS 010.4420.5605 AMAZON CAPITAL SERVICES4 04/05/2024 300673 58.17 SUBMERSIBLE WATER PUMP 010.4420.5605 AMAZON CAPITAL SERVICES5 04/05/2024 300673 22.35 HOSE 010.4420.5605 AMAZON CAPITAL SERVICES6 04/05/2024 300673 137.24 PW ADMIN OFFICE SUPPLIES 010.4307.5201 AMAZON CAPITAL SERVICES7 04/05/2024 300673 139.61 TRASH BAGS 010.4213.5604 AMAZON CAPITAL SERVICES8 04/05/2024 300673 263.68 BREAKROOM FIRST AID KIT, CPR MASK 010.4213.5604 AMAZON CAPITAL SERVICES 9 04/05/2024 300673 21.32 TOILET SEAT COVERS 010.4213.5604 AMAZON CAPITAL SERVICES 10 04/05/2024 300673 73.24 SOTO-CARBINER CLIPS 010.4430.5605 AMAZON CAPITAL SERVICES11 04/05/2024 300673 245.89 PW-WATER OFFICE SUPPLIES 640.4710.5201 AMAZON CAPITAL SERVICES12 04/05/2024 300673 47.68 ENGINEERING-OFFICE SUPPLIES 010.4301.5201 AMAZON CAPITAL SERVICES13 04/05/2024 300673 33.33 STREETS OFFICE SUPPLIES 220.4303.5201 AMAZON CAPITAL SERVICES14 04/05/2024 300673 39.46 CORRECTION TAPE, LAMINATING POUCHES 220.4303.5201 AMAZON CAPITAL SERVICES15 04/05/2024 300673 159.35 DEWALT FILTERS & CHARGER 220.4303.5603 AMAZON CAPITAL SERVICES16 04/05/2024 300673 245.40 WYPALLS CLEANING CLOTHS 220.4303.5613 AMAZON CAPITAL SERVICES17 04/05/2024 300675 24.77 BAN#9391033180 CITY HALL 010.4145.5403 AT&T18 04/05/2024 300675 27.79 BAN#9391033186 CREDIT CARD MACHINE 010.4145.5403 AT&T19 04/05/2024 300676 27.00 REFUND BOUNCE HOUSE FEE 010.0000.4354 KATIE AUSTIN20 04/05/2024 300676 96.00 REFUND PARK RENTAL-LESS ADMIN FEE 010.0000.4354 KATIE AUSTIN21 04/05/2024 300677 300.00 MONTHLY D.O. INSPECTION CITY FUEL PUMPS 010.4305.5303 B & T SVC STN CONTRACTORS, INC 22 04/05/2024 300678 50.00 REFUND SECURITY DEPOSIT / STROTHER PARK 010.0000.2206 HECTOR BARRAGAN23 04/05/2024 300679 190.00 REFUND - BERNARD, R. SPRING BREAK 010.0000.4605 GARRETT BERNARD24 04/05/2024 300679 190.00 REFUND - BERNARD, D. SPRING BREAK 010.0000.4605 GARRETT BERNARD25 04/05/2024 300680 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 LINDY BIRKHOLZ26 04/05/2024 300680 106.00 PARK RENTAL REFUND-ELM ST 010.0000.4354 LINDY BIRKHOLZ27 04/05/2024 300681 13.00 CAR WASH PD ADMIN 010.4201.5601 BOB'S EXPRESS WASH 28 04/05/2024 300681 13.00 CAR WASH-PD ADMIN 010.4201.5601 BOB'S EXPRESS WASH 29 04/05/2024 300681 52.00 CAR WASH-PD PATROL 010.4203.5601 BOB'S EXPRESS WASH 30 04/05/2024 300681 104.00 CAR WASH PD PATROL 010.4203.5601 BOB'S EXPRESS WASH 31 04/05/2024 300681 16.00 CAR WASH PW-70 220.4303.5601 BOB'S EXPRESS WASH 32 04/05/2024 300681 50.00 CAR WASH TOKENS (100) 612.4610.5601 BOB'S EXPRESS WASH 33 04/05/2024 300681 16.00 CAR WASH PW-44 612.4610.5601 BOB'S EXPRESS WASH 34 04/05/2024 300681 16.00 CAR WASH PW-10 640.4712.5601 BOB'S EXPRESS WASH 35 04/05/2024 300681 16.00 CAR WASH-PW-71 640.4712.5601 BOB'S EXPRESS WASH36 04/05/2024 300681 50.00 CAR WASH TOKENS (100) 640.4712.5601 BOB'S EXPRESS WASH 37 04/05/2024 300681 13.00 CAR WASH-PD SUPPORT SVCS 010.4204.5601 BOB'S EXPRESS WASH38 04/05/2024 300682 252.00 PRORATED ARTS AND CRAFT CLUB 010.4424.5351 KENDRA BOWLING

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name39 04/05/2024 300682 $ 392.00 ARTS CRAFT CLUB - WINTER SESSION 010.4424.5351 KENDRA BOWLING 40 04/05/2024 300683 211.19 REPRINT BANNER PRINT AG LOGO / CITY COUNCIL 010.4001.5201 BRAND CREATIVE41 04/05/2024 300683 188.56 (1) STREET SIGN FOR RON SIMPSON 010.4307.5201 BRAND CREATIVE42 04/05/2024 300684 11.31 RES #2 ROOFING MATERIALS 640.4712.5604 BRISCO MILL & LUMBER YARD43 04/05/2024 300684 34.45 RES #2 ROOFING MATERIALS 640.4712.5604 BRISCO MILL & LUMBER YARD44 04/05/2024 300684 (29.61) CREDIT RETURN-CAULKING GUN, ADHESIVE 640.4712.5604 BRISCO MILL & LUMBER YARD45 04/05/2024 300684 33.37 BUCKET, BROOMS 640.4712.5610 BRISCO MILL & LUMBER YARD46 04/05/2024 300684 313.44 SHOVELS (10) 640.4712.5610 BRISCO MILL & LUMBER YARD47 04/05/2024 300685 43.26 (4) 50# BAGS FAST SET CONCRETE 220.4303.5613 BURKE AND PACE OF AG, INC48 04/05/2024 300686 3,694.00 1 YR SUPPORT SVC 010.4140.5303 CIO SOLUTIONS LP49 04/05/2024 300687 440.00 FEB WATER SAMPLES 640.4710.5310 CLINICAL LABORATORY OF50 04/05/2024 300688 735.00 WRITING FOR LIFE WINTER SESSION 010.4424.5351 GAYLE CUDDY 51 04/05/2024 300689 534.00 DSA FEES FROM BUS LIC JAN-MAR 2024 010.0000.4050 DIVIS. OF THE STATE ARCHITECT52 04/05/2024 300689 (373.80) MINUS 70% THAT CITY RETAINS 010.0000.2231 DIVIS. OF THE STATE ARCHITECT53 04/05/2024 300690 2,731.66 2" x 1 1/2" BALL VALVES 4(ea) 640.4712.5610 FAMCON PIPE AND SUPPLY INC54 04/05/2024 300690 970.83 (10) 1" PVC PARK ADPT (10) 1" X 3/4" 640.4712.5610 FAMCON PIPE AND SUPPLY INC55 04/05/2024 300690 7,806.73 FIBERLYTE METER BOXES P LIDS (29 EA) 640.4712.5610 FAMCON PIPE AND SUPPLY INC56 04/05/2024 300690 325.16 REPAIR CLAMP 640.4712.5610 FAMCON PIPE AND SUPPLY INC 57 04/05/2024 300691 7.00 TOLL FEE 010.4204.5501 FASTRAK58 04/05/2024 300692 70.00 REFUND-QUILTING WITH BOBBI 010.0000.4605 ELIZABETH GARVIN59 04/05/2024 300693 140.57 SEWER REIMB. DUE 612.0000.4751 CITY OF GROVER BEACH 60 04/05/2024 300694 113.08 CORP. YARD SEWER BILL 1/15/24 612.0000.4751 CITY OF GROVER BEACH61 04/05/2024 300695 10.24 WELD ON HOOK FOR PW-11 BACKHOE 640.4712.5603 HEACOCK TRAILERS & TRUCK62 04/05/2024 300696 75.00 REFUND-SERGER SEWING 010.0000.4605 CLAUDIA HILLEGASS63 04/05/2024 300697 654.44 WELL LUBRICATING OIL 640.4711.5603 JB DEWAR, INC64 04/05/2024 300698 64.00 SCOREKEEPER MON. 3/25 4 GAMES 010.4424.5352 JHADE LA PAZ65 04/05/2024 300698 48.00 SCOREKEEPER TUES. 3/26 3 GAMES 010.4424.5352 JHADE LA PAZ 66 04/05/2024 300699 50.00 REFUND PARK DEPOSIT-STROTHER 010.0000.2206 AMELIA LEE67 04/05/2024 300699 50.00 REFUND PARK DEPOSIT-STROTHER 010.0000.2206 AMELIA LEE68 04/05/2024 300699 66.00 REFUND PARK RENTAL-STROTHER 010.0000.4354 AMELIA LEE69 04/05/2024 300699 60.00 REFUND PARK RENTAL-STROTHER 010.0000.4354 AMELIA LEE70 04/05/2024 300699 (10.00) LESS ADMIN FEE 010.0000.4354 AMELIA LEE 71 04/05/2024 300700 74.00 REFUND ROW24-000048 010.0000.4141 PETER LEHRACK72 04/05/2024 300701 1,926.99 SHORETEL PHONE CHRGS-PD 010.4201.5403 LEVEL 3 COMMUNICATIONS LLC73 04/05/2024 300701 2,407.52 SHORETEL PHONE CHRGS-CITY HALL 010.4145.5403 LEVEL 3 COMMUNICATIONS LLC74 04/05/2024 300702 1,068.52 SOTO-WELL MOTOR REPLACEMENT 640.4711.5603 MELLO & SON'S PUMPS & MOTORS75 04/05/2024 300703 56.01 TIE DOWN 220.4303.5613 MINER'S ACE HARDWARE, INC76 04/05/2024 300704 805.93 PROF. SERV. 2/1/24 to 2/29/24 010.4301.5303 MNS ENGINEERS INC

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name77 04/05/2024 300704 $ 215.00 PROF. SERV. 2/1/24 to 2/29/24 010.4301.5303 MNS ENGINEERS INC78 04/05/2024 300705 36.00 REFUND DUPLICATE PAYMENT BL23-000341 010.0000.4050 STEWART MORSE79 04/05/2024 300706 28.04 OFFICE SUPPLIES 010.4120.5201 ODP BUSINESS SOLUTIONS LLC80 04/05/2024 300706 171.72 COPY PAPER 010.4102.5201 ODP BUSINESS SOLUTIONS LLC 81 04/05/2024 300707 49.46 SPECIAL EVENTS EGG HUNT REIMB 010.4424.5252 KELLY REYNOLDS82 04/05/2024 300708 14.00 REF FOR FACILITY RENTAL TABLES 010.0000.2032 SLO COUNTY OFFICE OF EDUCATION83 04/05/2024 300709 50.00 REFUND SECURITY DEPOSIT ELM ST 010.0000.2206 HANNAH SMITH84 04/05/2024 300710 30.98 GAS SERVICES-111 S MASON 010.4145.5401 SOCALGAS85 04/05/2024 300710 16.06 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS86 04/05/2024 300710 60.62 GAS SERVICES-215 E BRANCH 010.4145.5401 SOCALGAS87 04/05/2024 300710 49.27 GAS SERVICES-211 VERNON ST 010.4145.5401 SOCALGAS88 04/05/2024 300711 32.00 SCOREKEEPER 3/28, 2 GAMES 010.4424.5352 ZACHARY SORIANO 89 04/05/2024 300712 97.39 NO PARKING SIGNS (100) 640.4712.5610 STATEWIDE SAFETY & SIGNS INC90 04/05/2024 300713 315.26 LODGING REIMB-FCFA CHIEF INTERVIEW 010.0000.1111 GREG TARASCOU91 04/05/2024 300714 107.00 PC PH-TPM 444 LIERLY LANE 010.4130.5301 THE MCCLATCHY COMPANY LLC92 04/05/2024 300714 91.80 PC PH-CAR WASH 010.4130.5301 THE MCCLATCHY COMPANY LLC93 04/05/2024 300714 45.90 ORD SUMMARY 728 010.4002.5301 THE MCCLATCHY COMPANY LLC94 04/05/2024 300714 29.75 ORD SUMMARY ADU 010.4002.5301 THE MCCLATCHY COMPANY LLC95 04/05/2024 300714 96.90 CC PH-FORMULA BUSINESS 010.4002.5301 THE MCCLATCHY COMPANY LLC96 04/05/2024 300714 48.45 PUBLIC NOTICE-ANNUAL FINANCIALS 010.4002.5301 THE MCCLATCHY COMPANY LLC97 04/05/2024 300714 108.80 CC PH-DOMESTIC WELL NOYES RD 010.4002.5301 THE MCCLATCHY COMPANY LLC98 04/05/2024 300714 42.50 ORD SUMMARY-DEVELOPMENTAL IMPACT FEES 010.4002.5301 THE MCCLATCHY COMPANY LLC99 04/05/2024 300714 42.50 ORD SUMMARY-FORMULA BUSINESS 010.4002.5301 THE MCCLATCHY COMPANY LLC100 04/05/2024 300714 81.60 CC PH-ADU 010.4002.5301 THE MCCLATCHY COMPANY LLC101 04/05/2024 300714 44.20 ORD SUMMARY 727 010.4002.5301 THE MCCLATCHY COMPANY LLC102 04/05/2024 300715 137.94 COPY MACHINE METER READ 3/01/2 010.4102.5602 ULTREX BUSINESS PRODUCTS (DBA)103 04/05/2024 300716 1,160.35 PAYROLL FOR: W/E 3/10 TEMP PW MAINT WORKER 010.4420.5303 UNITED STAFFING ASSOC.104 04/05/2024 300717 1,764.00 SOCCER-WINTER SESSION 2 010.4424.5351 YOUTH EVOLUTION BASKETBALL105 04/05/2024 300717 882.00 BASKETBALL WINTER SESSION #2 010.4424.5351 YOUTH EVOLUTION BASKETBALL 106 04/05/2024 300718 122.06 UB Refund Cst #00029228 640.0000.2301 MARK & NANCY BLEDSOE107 04/05/2024 300719 1.94 UB Refund Cst #00029153 640.0000.2301 FUND 2016 LLC BRECKENRIDGE PROPERTY108 04/05/2024 300720 30.13 UB Refund Cst #00023877 640.0000.2301 HEATHER EMERSON109 04/05/2024 300721 272.24 UB Refund Cst #00029008 640.0000.2301 THOMAS IRVINE110 04/05/2024 300722 61.20 UB Refund Cst #00026926 640.0000.2301 CASSIDIE REEDER 111 04/05/2024 300723 83.48 UB Refund Cst #00029036 640.0000.2301 ROBIN C WEBER112 04/05/2024 300724 59,322.00 SOCIAL SECURITY 011.0000.2105 CITY OF ARROYO GRANDE113 04/05/2024 300724 14,491.14 MEDICARE 011.0000.2105 CITY OF ARROYO GRANDE114 04/05/2024 300724 53,403.90 FEDERAL WITHHOLDING 011.0000.2104 CITY OF ARROYO GRANDE

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name115 04/05/2024 300725 $ 22,069.71 STATE WITHHOLDING 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT116 04/05/2024 300725 4,968.21 CASDI 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT117 04/05/2024 300726 401.06 DEPT OF CHILD SUPPORT SERVICES 011.0000.2114 CA STATE DISBURSEMENT UNIT118 04/05/2024 300727 7,793.28 DENTAL INSURANCE 011.0000.2110 DELTA DENTAL119 04/05/2024 300727 157.42 DENTAL INSURANCE 011.0000.2110 DELTA DENTAL120 04/05/2024 300727 (0.99) MISC ADJ 011.0000.2110 DELTA DENTAL121 04/05/2024 300727 2,518.72 04/24 DENTAL PREMIUM-RETIREES 010.4099.5132 DELTA DENTAL122 04/05/2024 300728 5,846.22 DEFERRED COMPENSATION - EE % 011.0000.2117 ICMA RETIREMENT CORP123 04/05/2024 300728 11,448.72 DEFERRED COMPENSATION - EE 011.0000.2117 ICMA RETIREMENT CORP124 04/05/2024 300728 916.66 DEFERRED COMPENSATION - ER 011.0000.2117 ICMA RETIREMENT CORP125 04/05/2024 300728 135.00 ROTH - AFTER TAX 011.0000.2117 ICMA RETIREMENT CORP126 04/05/2024 300728 196.89 ROTH % - AFTER TAX 011.0000.2117 ICMA RETIREMENT CORP127 04/05/2024 300729 4,742.00 PORAC MED INSURANCE 011.0000.2109 PERS - ACTIVE MED128 04/05/2024 300729 1,738.28 HMO BLUESHIELD - SEIU 011.0000.2109 PERS - ACTIVE MED129 04/05/2024 300729 13,110.80 PPO PERS GOLD - MANAGEMENT 011.0000.2109 PERS - ACTIVE MED130 04/05/2024 300729 11,192.14 PPO PERS GOLD - POLICE 011.0000.2109 PERS - ACTIVE MED131 04/05/2024 300729 18,387.10 PPO PERS GOLD - SEIU 011.0000.2109 PERS - ACTIVE MED132 04/05/2024 300729 3,727.10 BLUE SHIELD TRIO HMO - MGMT 011.0000.2109 PERS - ACTIVE MED133 04/05/2024 300729 103.44 04/24 FCFA ACTIVE HEALTH ADMIN 010.0000.1111 PERS - ACTIVE MED134 04/05/2024 300729 800.48 04/24 RETIREE HEALTH INS-FCFA 010.0000.1111 PERS - ACTIVE MED135 04/05/2024 300729 383.55 04/24 ACTIVE HEALTH ADMIN FEE 010.4145.5131 PERS - ACTIVE MED136 04/05/2024 300729 9,560.82 BLUE SHIELD TRIO HMO - POLICE 011.0000.2109 PERS - ACTIVE MED137 04/05/2024 300729 4,213.24 BLUE SHIELD TRIO HMO - SEIU 011.0000.2109 PERS - ACTIVE MED138 04/05/2024 300729 21,617.40 HMO-UNITED HEALTHCARE-MGMT 011.0000.2109 PERS - ACTIVE MED139 04/05/2024 300729 9,384.28 HMO UNITED HEALTHCARE-POLICE 011.0000.2109 PERS - ACTIVE MED140 04/05/2024 300729 18,936.16 HMO UNITED HEALTHCARE-SEIU 011.0000.2109 PERS - ACTIVE MED141 04/05/2024 300729 2,078.54 PERS GOLD - FIRE MANAGEMENT 011.0000.2109 PERS - ACTIVE MED142 04/05/2024 300729 2,303.00 PPO PERS PLATINUM - FIRE 011.0000.2109 PERS - ACTIVE MED143 04/05/2024 300729 16,468.44 PPO PERS GOLD - FIRE 011.0000.2109 PERS - ACTIVE MED144 04/05/2024 300729 810.24 BLUE SHIELD TRIO HMO - FIRE 011.0000.2109 PERS - ACTIVE MED145 04/05/2024 300729 8,211.26 HMO UNITED HEALTHCARE-FIRE 011.0000.2109 PERS - ACTIVE MED146 04/05/2024 300729 4,357.00 HMO-UNITED HEALTH FIRE-MGMT 011.0000.2109 PERS - ACTIVE MED147 04/05/2024 300729 1,340.40 MISC ADJ 011.0000.2109 PERS - ACTIVE MED148 04/05/2024 300729 6,861.92 04/24 RETIREE HEALTH INS 010.4099.5136 PERS - ACTIVE MED149 04/05/2024 300729 635.24 04/24 RETIREE HEALTH INS 220.4303.5136 PERS - ACTIVE MED150 04/05/2024 300730 6.97 04/24 ACTIVE HEALTH ADMIN FEE- 010.4145.5131 PERS - ACTIVE MED151 04/05/2024 300730 2,178.49 04/24 ACTIVE HEALTH INS PT NON 011.0000.2109 PERS - ACTIVE MED152 04/05/2024 300731 43,810.10 PERS RETIREMENT 011.0000.2106 PERS - RETIREMENT

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name153 04/05/2024 300731 $ 59,249.64 PERS RETIREMENT 011.0000.2106 PERS - RETIREMENT154 04/05/2024 300731 1,576.51 PERS Employer Pick Up 011.0000.2106 PERS - RETIREMENT155 04/05/2024 300731 497.46 PERS BUYBACK - PRE TAX 011.0000.2106 PERS - RETIREMENT156 04/05/2024 300731 (0.05) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT157 04/05/2024 300732 995.50 STANDARD INSURANCE COMPANY 011.0000.2113 STANDARD INSURANCE CO158 04/05/2024 300732 565.04 STANDARD INSURANCE COMPANY 011.0000.2113 STANDARD INSURANCE CO159 04/05/2024 300732 23.50 STANDARD LIFE TAXABLE DEDUCT 011.0000.2113 STANDARD INSURANCE CO160 04/05/2024 300732 996.55 STANDARD LTD/STD INSURANCE 011.0000.2113 STANDARD INSURANCE CO161 04/05/2024 300732 (3.08) MISC ADJ 011.0000.2113 STANDARD INSURANCE CO162 04/05/2024 300733 966.84 PARS 011.0000.2107 US BANK OF CALIFORNIA163 04/05/2024 300734 2,126.90 VISION CARE INSURANCE 011.0000.2119 VISION SERVICE PLAN164 04/05/2024 300734 (0.78) MISC ADJ 011.0000.2119 VISION SERVICE PLAN165 04/05/2024 300734 677.34 04/24 RETIREE VISION INSURANCE 010.4099.5133 VISION SERVICE PLAN166 04/12/2024 300735 82.00 WELL #8 SAMPLES / WELL #1 640.4710.5310 ABALONE COAST ANALYTICAL INC167 04/12/2024 300736 300.00 2 HOURS LABOR. REPAIRS IN SERVER ROOM 010.4213.5303 ALPINE REFRIGERATION 168 04/12/2024 300737 99.13 OFFICE SUPPLIES - LEG & INFO SERVICES 010.4002.5201 AMAZON CAPITAL SERVICES169 04/12/2024 300737 1,547.25 MONITOR & DESK MOUNT, PRINTER 010.4130.5201 AMAZON CAPITAL SERVICES170 04/12/2024 300737 25.58 (2) PLANNER NOTEBOOKS 010.4130.5201 AMAZON CAPITAL SERVICES171 04/12/2024 300737 1,184.06 HP LASERJET M610DN PRINTER 010.4140.5702 AMAZON CAPITAL SERVICES172 04/12/2024 300738 400.00 VILLAGE WATERING MARCH 2024 010.4420.5605 ARROYO GRANDE IN BLOOM INC173 04/12/2024 300739 4,200.00 MARCH 2024 OPERATOR SERVICES 010.4002.5330 A-TOWN AUDIO VIDEO174 04/12/2024 300739 1,050.00 FEB 2024 OPERATOR SERVICES 010.4002.5330 A-TOWN AUDIO VIDEO175 04/12/2024 300740 175.00 REIMBURSE FOR DRONE CERT CLASS 010.4203.5501 JACOB BLACK176 04/12/2024 300741 103.00 WOMENS CLUB PEST CONTROL 010.4213.5303 BREZDEN PEST CONTROL, INC177 04/12/2024 300742 12.92 BROOM FOR PW-41 220.4303.5273 BRISCO MILL & LUMBER YARD178 04/12/2024 300742 48.48 8" TAMPER 220.4303.5613 BRISCO MILL & LUMBER YARD179 04/12/2024 300743 14.72 2 x 30" FLAT METAL STAKES 220.4303.5613 BURKE AND PACE OF AG, INC 180 04/12/2024 300744 2,172.80 SMIP 01/24-03/24 010.0000.2208 CA ST DEPT OF CONSERVATION181 04/12/2024 300744 (108.64) ADMIN FEE-SMIP 010.0000.4801 CA ST DEPT OF CONSERVATION182 04/12/2024 300745 2,187.19 1/24 CMC WORK CREW-HEDGE TRIMMER 220.4303.5303 CA ST DEPT OF CORRECTIONS183 04/12/2024 300745 1,484.08 02/24 CMC WORK CREW-PARK WOOD 220.4303.5303 CA ST DEPT OF CORRECTIONS184 04/12/2024 300745 2,206.43 03/24 CMC WORK CREW-WEED ABATEMENT 220.4303.5303 CA ST DEPT OF CORRECTIONS185 04/12/2024 300746 379.00 STATE GREEN BLDG STD FEE JAN -MAR 2024 010.0000.2223 CALIFORNIA BUILDING STANDARDS186 04/12/2024 300746 (37.90) ADMIN/CODE ENF EDUCATION FEE 010.0000.2223 CALIFORNIA BUILDING STANDARDS187 04/12/2024 300747 639.92 6 TON 1/2" ASPHALT 640.4712.5610 CALPORTLAND CONSTRUCTION 188 04/12/2024 300748 19.38 PW-77 RATCHET TIE DOWN W/HOOKS 220.4303.5603 CARQUEST AUTO PARTS189 04/12/2024 300749 131.00 REFUND BUS LIC BL15-000142-OVER PAYMENT 010.0000.4050 CENTRAL COAST STAR190 04/12/2024 300750 199.98 ACCT#170562001 PD INTERNET 010.4201.5403 CHARTER COMMUNICATIONS

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name191 04/12/2024 300750 $ 199.98 ACCT#170562001 PD INTERNET 010.4201.5403 CHARTER COMMUNICATIONS192 04/12/2024 300750 1,349.00 ACCT#170563401 CITY HALL INTERNET 010.4140.5303 CHARTER COMMUNICATIONS193 04/12/2024 300750 1,349.00 ACCT#170563301 COUNCIL CHAMBER 211.4101.5330 CHARTER COMMUNICATIONS194 04/12/2024 300750 147.03 ACCT#170563101 COUNCIL CHAMBER 010.4145.5401 CHARTER COMMUNICATIONS195 04/12/2024 300750 66.72 ACCT#090058901 CITY HALL TV 010.4145.5401 CHARTER COMMUNICATIONS196 04/12/2024 300750 987.20 ACCT#170562201 PD DARK FIBER 010.4145.5401 CHARTER COMMUNICATIONS197 04/12/2024 300750 228.72 ACCT#170562101 PD TV 010.4145.5401 CHARTER COMMUNICATIONS198 04/12/2024 300750 736.80 ACCT#170564001 PW DARK FIBER 010.4145.5401 CHARTER COMMUNICATIONS199 04/12/2024 300750 768.54 ACCT#170563801 REC TV & DARK FIBER 010.4145.5401 CHARTER COMMUNICATIONS200 04/12/2024 300750 327.16 ACCT#170562601 WOMENS CLUB DARK FIBER 010.4145.5401 CHARTER COMMUNICATIONS201 04/12/2024 300751 280.00 03/24 STAFF AUGMENTATION-BEADLE 010.4140.5303 CIO SOLUTIONS LP202 04/12/2024 300751 1,278.75 03/24 STAFF AUGMENTATION-BEADLE 010.4140.5303 CIO SOLUTIONS LP203 04/12/2024 300751 84.00 OAISYS CALL RECORDING RENEWAL 010.4140.5303 CIO SOLUTIONS LP204 04/12/2024 300751 22,855.00 MICROSOFT OPEN VALUE CONTRACT 010.4140.5607 CIO SOLUTIONS LP205 04/12/2024 300751 3,463.16 JUNIPER LICENSING RENEWALS 010.4140.5303 CIO SOLUTIONS LP206 04/12/2024 300753 7,500.00 MARCH PROFESSIONAL SERVICES 010.4101.5303 CLIFFORD MOSS LLC207 04/12/2024 300753 249.55 DATA FOR MAILER #1 010.4101.5303 CLIFFORD MOSS LLC208 04/12/2024 300754 45.00 GARBAGE 220.4303.5307 COLD CANYON LANDFILL, INC209 04/12/2024 300755 300.00 BOV -214 E BRANCH 010.4307.5303 COLLIERS TINGEY INTL INC210 04/12/2024 300756 39.80 GB SOLVENT, PUMP CONDITIONER AIRLESS FIELD 010.4430.5605 CONTRACTORS MAINT.SERVICE211 04/12/2024 300757 267.00 SCANNER SERVICE 010.4140.5602 CRISP IMAGING212 04/12/2024 300758 479.08 03/24 NETBILL CC TRANS 640.4710.5555 DATAPROSE LLC213 04/12/2024 300758 1,500.30 03/24 UTILITY BILL MAILING 640.4710.5208 DATAPROSE LLC214 04/12/2024 300758 400.00 03/24 NETBILL MONTHLY MAINT 640.4710.5303 DATAPROSE LLC215 04/12/2024 300758 119.77 03/24 NETBILL CC TRANS 612.4610.5555 DATAPROSE LLC216 04/12/2024 300759 401.79 KYOCERA COPIER LEASE 010.4421.5602 DE LAGE LANDEN FINANCIAL SVCS217 04/12/2024 300760 54.00 POLARIS TAG FEE 010.4430.5601 DEPT OF MOTOR VEHICLES218 04/12/2024 300761 1,372.80 20 ea. 3/4" BELL VALVE 640.4712.5610 FAMCON PIPE AND SUPPLY INC219 04/12/2024 300762 11.34 1.5 SLIP FIX 010.4430.5605 FARM SUPPLY CO220 04/12/2024 300762 354.89 (3) HUNTER I-40 (3) PGP, 2 BALL VALVE SLIP, CEMENT 1.5 010.4430.5605 FARM SUPPLY CO221 04/12/2024 300763 27.88 SHIPPING FINAL PARCEL MAP TO MNS 010.4130.5201 FEDEX222 04/12/2024 300764 204.73 P18 KEYS 010.4213.5604 FRANK'S LOCK & KEY223 04/12/2024 300765 500.00 AG SLOPE STABILIZATION - BRIDGE TO MASON STREETS 350.5621.7701 GARING TAYLOR & ASSOCIATES INC224 04/12/2024 300766 106.08 PORTABLE TOILET RENTAL 03/24 220.4303.5552 HARVEY'S HONEY HUTS225 04/12/2024 300767 351.00 ELEV MO. MAINT 1ST QTR 2024 / STATE COMPLIANCE 010.4213.5303 HEACOCK ELEVATOR CO.226 04/12/2024 300768 49.41 APR 2024 AETNA RESOURCES - FCFA 010.0000.1111 HEALTH AND HUMAN RESOURCE CTR227 04/12/2024 300768 197.64 APR 2024 AETNA RESOURCES 010.4145.5147 HEALTH AND HUMAN RESOURCE CTR228 04/12/2024 300769 219.26 PIPE FITTINGS 3/4" FEMALE ADAPTOR 640.4712.5610 ICONIX WATERWORKS (US) INC

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name229 04/12/2024 300770 $ 514.99 PW 50 REPLACE INNER SEAL FRONT DRIVER 220.4303.5601 L. DIESEL MOBILE SERVICE(DBA)230 04/12/2024 300771 71.00 REFUND BUS LIC BL22-000071-OVERPAYMENT 010.0000.4050 KIMMY LA231 04/12/2024 300772 1,530.84 2023 TRENCHLESS SEWER REHABILITATION PROJECT 612.5817.7001 MICHAEL K NUNLEY & ASSOC. 232 04/12/2024 300773 207.96 (2) BROWN CHIPS PLANTERS MIX 010.4420.5605 MIER BROS LANDSCAPE PRODUCTS 233 04/12/2024 300773 148.70 (2) CY YDS BROWN CHIPS 010.4420.5605 MIER BROS LANDSCAPE PRODUCTS 234 04/12/2024 300774 38.76 (2) T8 BULB, CAULK GUN 010.4213.5604 MINER'S ACE HARDWARE, INC235 04/12/2024 300774 39.39 TUBE STRAP/HANGER PIPE/SEALANT 010.4213.5604 MINER'S ACE HARDWARE, INC236 04/12/2024 300774 20.45 PENT GREASE / GOOF OFF SPRAY 220.4303.5613 MINER'S ACE HARDWARE, INC 237 04/12/2024 300774 323.20 (5) AQUAPHALT 220.4303.5613 MINER'S ACE HARDWARE, INC238 04/12/2024 300775 83.25 PW 69 THE WORKS 220.4303.5613 MULLAHEY FORD239 04/12/2024 300776 383.82 254CC STRAIGHT WEED WHIP LINE 220.4303.5273 NOBLE SAW, INC240 04/12/2024 300777 281.62 PRE EMPLOYMENT MEDICAL TESTING 010.4201.5315 PACIFIC CENTRAL COAST HEALTH241 04/12/2024 300778 35.31 ELECTRIC - WELL #11 352 LA CANADA 640.4711.5402 PACIFIC GAS & ELECTRIC CO242 04/12/2024 300779 920.00 GOPHER/MOLE CONTROL JAN & FEB 010.4420.5303 PACIFIC GOPHER CONTROL243 04/12/2024 300780 1,300.00 PET PICK-UP BAGS 010.4420.5605 PET PICK-UPS244 04/12/2024 300780 233.39 Freight 010.4420.5605 PET PICK-UPS245 04/12/2024 300781 25.03 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY246 04/12/2024 300781 48.02 WOMENS CLUB MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY247 04/12/2024 300781 27.63 PD MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY248 04/12/2024 300781 31.17 REC DEPT MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY249 04/12/2024 300781 25.03 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY250 04/12/2024 300781 48.02 WOMENS CLUB MATS & MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY251 04/12/2024 300781 27.63 PD MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY252 04/12/2024 300781 31.17 REC DEPT MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY253 04/12/2024 300781 25.03 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY254 04/12/2024 300781 48.02 WOMEN'S CLUB MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY255 04/12/2024 300781 16.38 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY256 04/12/2024 300781 36.68 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY257 04/12/2024 300781 36.68 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY258 04/12/2024 300781 57.31 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY259 04/12/2024 300781 36.47 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY260 04/12/2024 300781 57.31 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY261 04/12/2024 300781 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY262 04/12/2024 300781 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY263 04/12/2024 300781 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY264 04/12/2024 300781 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY265 04/12/2024 300781 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY266 04/12/2024 300781 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY

CITY OF ARROYO GRANDE

CHECK LISTING
APRIL 1 - APRIL 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name267 04/12/2024 300781 $ 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY268 04/12/2024 300781 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY269 04/12/2024 300781 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY270 04/12/2024 300781 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY271 04/12/2024 300781 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY272 04/12/2024 300781 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY273 04/12/2024 300781 23.63 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY274 04/12/2024 300781 23.63 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY275 04/12/2024 300781 23.63 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY276 04/12/2024 300782 484.37 04/24 GRACE LN LANDSCAPE MAINT 216.4460.5304 RAINSCAPE 277 04/12/2024 300782 1,201.41 04/24 PARKSIDE LANDSCAPE MAINT 219.4460.5304 RAINSCAPE278 04/12/2024 300783 1,092.00 W/E 3/15/24 ACCOUNTING/HR SUPPORT 010.4120.5303 ROBERT HALF279 04/12/2024 300783 1,092.00 W/E 3/22/24 ACCOUNTING/HR SUPPORT 010.4120.5303 ROBERT HALF280 04/12/2024 300783 1,092.00 W/E 3/29/24 ACCOUNTING/HR SUPPORT 010.4120.5303 ROBERT HALF281 04/12/2024 300783 1,092.00 W/E 04/05/24 ACCOUNTING/HR SUPPORT 010.4120.5303 ROBERT HALF282 04/12/2024 300784 2,071.14 HYSTER FORK LIFT TIRES / WHEEL 220.4303.5603 SANTA MARIA TIRE, INC283 04/12/2024 300786 19,180.00 03/24 SEWER SVC HOOKUPS (9) 760.0000.2305 SOUTH SLO COUNTY SANIT DIST284 04/12/2024 300786 202,028.02 03/24 SEWER SVCS COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST285 04/12/2024 300786 105.72 12 CITY ACCOUNTS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST286 04/12/2024 300787 7,342.50 STREET SWEEPING: CITY WIDE 220.4303.5303 SP MAINTENANCE SERVICES, INC287 04/12/2024 300787 7,342.50 STREET SWEEPING: CITY WIDE 010.4307.5303 SP MAINTENANCE SERVICES, INC288 04/12/2024 300788 1,000.00 FACILITY USAGE-SPRING SESSION 010.4424.5251 ST JOHN'S LUTHERAN CHURCH 289 04/12/2024 300788 350.00 FACILITY USAGE-FALL SESSION 010.4424.5251 ST JOHN'S LUTHERAN CHURCH 290 04/12/2024 300789 109.26 (4) BARRICADE LIGHTS & BATTERIES 640.4712.5610 STATEWIDE SAFETY & SIGNS INC291 04/12/2024 300790 187.69 BLACK VINYL LETTERING 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTS292 04/12/2024 300791 5,600.00 ENTERPRISE ERP FINANCIAL MGMT 350.5453.7301 TYLER TECHNOLOGIES INC293 04/12/2024 300792 1,044.32 PAYROLL FOR W/E 03/10/2024 PW PT WORKER 010.4420.5303 UNITED STAFFING ASSOC.294 04/12/2024 300793 930.78 NORTHERN CITIES STAFF EXTENSION 640.4710.5303 WATER SYSTEMS CONSULTING INC 295 04/12/2024 300794 482.63 (3) #15 OLEA E. ARIZONA TREES 010.4420.5605 WEST COVINA NURSERIES296 04/12/2024 300795 1,689.41 WO#3702 2/26/24 HALCYON & ECR 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC297 04/12/2024 300795 1,440.00 SIGNAL MAINT. FEB 24 (12 INTERSECTIONS 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC298 04/12/2024 300795 60.00 OAK PARK & JAMES WAY 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC299 04/12/2024 300795 60.00 OAK PARK & EL CAMINO REAL 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC300 04/12/2024 300795 75.00 OAK PARK & WEST BRANCH 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC301 04/12/2024 300795 14.87 POLICE KEYS 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC302 04/12/2024 300796 624.99 DEPENDENT CARE ACCOUNT 011.0000.2127 STERLING ADMINISTRATION303 04/12/2024 300796 1,144.16 FLEXIBLE SPENDING ACCOUNT 011.0000.2127 STERLING ADMINISTRATION $ 832,832.81

.

General Fund 422,088.02 5101 Salaries Full time 275,901.88 Streets Fund 21,414.21 5101 Volunteer Employee Retirement - Sewer Fund 11,603.08 5102 Salaries Part-Time - PPT 6,156.98 Water Fund 24,780.51 5103 Salaries Part-Time - TPT 5,670.78 479,885.82 5105 Salaries OverTime 17,609.17
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,135.90
5108 Holiday Pay 8,933.88
5109 Sick Pay 6,839.91
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 16,469.46 5113 Vacation Pay 7,320.20
Public Works - Maintenance 282.55 5114 Comp Pay 3,492.85 Public Works - Enterprise 857.16 5115 Annual Leave Pay 10,767.35 Recreation - Administration - 5116 Salaries - Police FTO 269.36 Recreation - Special Events - 5121 PERS Retirement 41,032.68 Children In Motion - 5122 Social Security 25,089.89
17,609.17 5123 PARS Retirement 193.37
5126 State Disability Ins. 3,617.44
5127 Deferred Compensation 816.66
5131 Health Insurance 56,788.91
5132 Dental Insurance 3,109.42
5133 Vision Insurance 829.56
5134 Life Insurance 405.77
5135 Long Term Disability 472.61
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance 887.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 113.75
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 1,255.00
479,885.82
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
03/15/24 - 03/28/2024
4/5/2024

BY FUND BY ACCOUNT
ATTACHMENT 2

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: May 14, 2024
RECOMMENDATION:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of March 31, 2024, as required by Government Code Section 53646(b).

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.

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.

ANALYSIS OF ISSUES:

This report represents the City’s investments as of March 31, 2024, and includes all investments managed by the City. As of March 31, 2024, the investment portfolio was in compliance with all State laws and the City’s investment policy.

Item 9.b.

City Council
Consideration of Statement of Investment Deposits
May 14, 2024

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. (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. Portfolio Summary: March 31, 2024

ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
March 31, 2024
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Local Agency Investment Fund $ 8,786,767.31 8,786,767.31 $ 4.012% 27.583% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 4.880% February 21, 2024 12 mos February 21, 2025 0.782% BMW Bank North America 249,000.00 249,000.00 0.500% July 16, 2021 36 mos July 16, 2024 0.782% Mountain America Federal Credit Union 249,000.00 249,000.00 4.750% October 14, 2022 24 mos October 15, 2024 0.782% Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 0.774% Wells Fargo Bank 249,000.00 249,000.00 4.600% October 28, 2022 24 mos October 28, 2024 0.782% Beal Bk Plano TX 247,000.00 247,000.00 1.350% March 26, 2022 36 mos March 26, 2025 0.774% Beal Bk Las Vegas NV 247,000.00 247,000.00 1.250% March 26, 2022 36 mos March 26, 2025 0.774% First Technology Federal 248,000.00 248,000.00 5.000% April 14, 2023 24 mos April 14, 2025 0.779% Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 0.769% American Express National Bank 246,000.00 246,000.00 3.100% May 25, 2022 36 mos May 25, 2025 0.772% New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.782% Chief Financial Federal Credit Union 249,000.00 249,000.00 4.600% October 12, 2022 36 mos October 14, 2025 0.782% Live Oak Bank 249,000.00 249,000.00 3.150% May 25, 2022 48 mos May 26, 2026 0.782% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.782% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.779% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 0.779% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.762% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 0.779% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.782% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.779% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.772% United Teletech Financial Credit Union 248,000.00 248,000.00 3.500% November 8, 2023 53 mos April 1, 2028 0.779% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.765% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.782% Total Certificates of Deposit 5,943,000.00 5,943,000.00 18.656% Agency Bonds
Federal Farm Credit Bank 1,999,314.00 1,986,835.90 0.350% December 4, 2020 42 mos May 16, 2024 6.276% Federal Home Loan Bank 499,252.43 509,477.71 1.000% July 19, 2022 29 mos December 20, 2024 1.567% Federal Farm Credit Bank 998,431.00 959,121.58 0.430% March 17, 2021 48 mos March 3, 2025 3.134% Federal Natl Mortgage Assn 1,000,000.00 932,833.84 0.500% October 20, 2020 60 mos October 20, 2025 3.139% Federal Home Loan Bank 999,500.00 925,389.41 0.800% March 17, 2021 60 mos March 10, 2026 3.138% Federal Home Loan Bank 994,396.00 940,099.95 2.400% March 17, 2021 72 mos March 29, 2027 3.122% Federal Home Loan Bank 500,000.00 481,899.53 3.375% May 17, 2022 60 mos May 17, 2027 1.570% Total Agency Bonds 6,735,657.92 6,990,893.43 21.946%
Municipal Bonds Page 22 of 236
ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
March 31, 2024
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio California State GO Various Purp Bond 491,810.00 $ 480,825.00 $ 3.100% May 12, 2022 47 mos April 1, 2026 1.544% California State Taxable GO Unlimited 1,256,116.00 1,296,302.60 3.500% November 1, 2023 53 mos April 1, 2028 3.943% Total Municipal Bonds 1,777,127.60 1,747,926.00 5.487%
Treasury Obligations
U.S. Treasury 42-Day Bill 2,471,635.00 2,481,045.28 5.250% March 4, 2024 53 mos May 23, 2024 7.759% U.S. Treasury 182 -Day Bill 2,440,702.50 2,449,041.35 5.200% March 4, 2024 53 mos August 22, 2024 7.662% U.S. Treasury BL-2024 Series 2,489,952.50 2,487,988.28 4.500% March 4, 2024 53 mos November 30, 2024 7.816% U.S. Treasury Z-2026 Series 984,728.00 921,523.44 1.100% December 6, 2021 53 mos May 31, 2026 3.091% Total Treasury Obligations 8,339,598.35 8,387,018.00 26.328% TOTAL INVESTMENTS $ 31,582,151.18 31,855,604.74 $ 100.000%

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director SUBJECT: Fiscal Year 2023-24 Third Quarter Status Report and Budget Adjustment Requests
DATE: May 14, 2024
RECOMMENDATION:

Consider, receive, and file the Fiscal Year (FY) 2023-24 Third Quarter Financial Status Report (the “Third Quarter Report”) and approve Two Budget Adjustment Requests.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Preparation of the Third Quarter Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the third quarter, FY 2023-24 revenues for the Consolidated General Fund were $15.8 million, or one percent (1%), below than the Budget Target (“Target”). Actual Expenditures were $18.5 million, and below the Budget Target by approximately $815,047, or three percent (3%).

The City Council is being asked to approve two budget adjustments. The budget adjustments are reappropriating funds between Capital Improvement Program (CIP) projects and does not request additional funding.

BACKGROUND:

Each fiscal year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The Third Quarter Report is the third of four financial performance reports that staff will present to the City Council during the 2023-24 fiscal year. The purpose of the FY 2023-24 Third Quarter Report is to:
 Compare third quarter revenues received and expenditures incurred to the third quarter of the prior year and to the budgeted Target to determine the City’s financial performance;
 Provide explanations for key account variances and identify any potential trends that might impact financial planning; and

Item 9.c.

City Council
Fiscal Year 2023-24 Third Quarter Status Report and Budget Adjustment Requests May 14, 2024

 Provide other key third 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 Third Quarter Report also includes a section regarding Budget Adjustments Requests. This section summarizes individual budget adjustments approved by the City Council during the third quarter, as well as administrative adjustments completed by staff.

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

ANALYSIS OF ISSUES:

Third Quarter (Q3) Revenue and Expenditures Compared to Prior Year Table 1 - Current Year Q3 Actuals Compared to Prior Year Q3 Actuals The Consolidated General Fund shown in Table 1 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 Measure O 2006 Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report.

The Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure O 2006, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O 2006 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 presents information for the Consolidated General Fund that includes Measure O 2006 Tax Fund revenues and expenditures. Consolidated General Fund revenues at the third quarter of this year were approximately $151,956 lower than the Third Quarter
FY 2023-24
Third Quarter
FY 2022-23 Variance
Revenue 15,803,762 15,955,718 (151,956)
Expenditures 18,523,174 16,596,946 1,926,228

Item 9.c.

City Council
Fiscal Year 2023-24 Third Quarter Status Report and Budget Adjustment Requests May 14, 2024

third quarter of the prior year. Expenditures were approximately $1.9 million higher at the end of the third quarter of the current fiscal year versus the third quarter of the prior year.

A more thorough explanation of third quarter variances is set forth in the attached financial report. The following is a summary of the third quarter variances between the two fiscal years.

Third Quarter (Q3) Revenue and Expenditures Compared to Target Table 2 - Current Year Q3 Actuals Compared to Target
Table 2 above compares third quarter actual results to the budgeted Target. Third Quarter actual revenue was short of the Target by $272,842. Third Quarter actual expenditures were short of the Target by approximately $815,047. A more thorough explanation of third quarter variances is set forth in the attached financial report.

Expenditures (approximately $815,047)
Actual third quarter expenditures were $815,047 under the Target. Some of the more significant savings occurred in Police, Public Works, Community Development, and City Administration Departments. The Third Quarter Report includes greater detail regarding the causes for the expenditure variances in these departments.

Section 5 of the Third Quarter Report includes a new update on the Goal Status Reports to Council, that includes the City’s progress towards completing Major City Goals and Capital Improvement Plan. This information is provided to keep the City Council apprised of the status of the Goal Status Reports and includes progress towards completing Major City Goals and Capital Improvement Plan.

Budget Adjustments
Staff identified two budget adjustments that are requested as described in more detail below:
 Capital Improvement Program: Reallocate $10,000 from the 2022 Pavement Management Program to the Corrugated Metal Pipe (CMP) project this fiscal year will enable the City to capitalize on the presence of a contractor with video equipment completing work on the sewer trenchless repair project to gather information necessary for FY 2024-25 CMP lining scheduled for next fiscal year.

Using this contractor will save mobilization costs for both evaluation and construction and enables staff to create a larger lining construction project that includes lining both sewer and storm drain lines. A larger project will attract more contractors to the bidding process and will result in a more cost-efficient result.

FY 2023-24 Third
Quarter Target
FY 2023-24 Third
Quarter Actuals Variance
Revenue 16,076,604 15,803,762 (272,842)
Expenditures 19,338,223 18,523,176 (815,047)

Item 9.c.

City Council
Fiscal Year 2023-24 Third Quarter Status Report and Budget Adjustment Requests May 14, 2024

 Capital Improvement Program: Reallocate $291,200 from the Phased Main Replacement under Highway 101 to Crossing Upgrade project that has not yet started to the other two Phased Main Replacement projects that are near completion or expected to be completed in the ARPA deadline timeframe. This shift of project funding would ensure that the ARPA funds allocated to water infrastructure would be spent as anticipated. The table below shows the current allocation and proposed allocation:

ALTERNATIVES:

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

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

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

3. Provide other direction to staff regarding the FY 2023-24 Third Quarter Financial Status Report and the Two Budget Adjustment Requests; or

4. Provide other direction to staff.

ADVANTAGES:

The financial report presents an updated review of the City’s financial performance in the third quarter of FY 2023-24. Approval of the requested budget adjustment 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 Third Quarter Financial Status Report Water Infrastructure Projects Current Proposed
Phased Main Replacement
Fair Oaks - Elm to Alder 480,250 705,500
Cornwall St - S. Halcyon to El Camino Real 578,700 644,650 Highway 101 Crossing Upgrade - El Camino Real to W. Branch 291,200 1,350,150 1,350,150

ATTACHMENT 1

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.

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

INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the third quarter 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 third quarter of the fiscal year and compare actual results to the prior year and the budgeted Target, to determine the City’s performance. The third quarter timeframe is July 1 through March 31, 2024.

The financial report is organized in the following sections:

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

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

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

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

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

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 Measure O 2006 Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR). The Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure O 2006, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O 2006 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 Measure O 2006 Sales Tax Fund 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 long-term 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

ATTACHMENT 1

(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.

CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns through the end of the third 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 third quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget.

Table 1
The following discussion focuses on both the City’s Governmental Funds and the Consolidated General Fund and provides a comparison between third quarter results for the current and prior year for both revenue and expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for the third 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.

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 Third Quarter
FY 2023-24
Third Quarter
FY 2022-23 Variance
Revenue $ 21,192,964 $ 21,647,913 $ (454,949)
Expenditures $ 20,015,280 $ 18,123,752 $ 1,891,528
Third Quarter
FY 2023-24
Third Quarter
FY 2022-23 Variance
Revenue $ 15,803,762 $ 15,955,718 $ (151,956)
Expenditures $ 18,523,174 $ 16,596,946 $ 1,926,228
Governmental Funds
Consolidated General Fund Page 30 of 236
ATTACHMENT 1

Governmental Funds – At the end of the third quarter of FY 2023-24, Governmental Fund revenue was - 2%, or $454,949 lower than prior year, and expenditures were higher by 5% or $1.9 million.

The majority of the revenue and expenditure variances in Governmental Funds were attributed to variances within the Consolidated General Fund and the American Rescue Plan Act (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 third quarter was 4%, or $151,956 lower than the third quarter of the prior year. Expenditures increased by 14%, or $1.9 million higher than the third quarter of the prior year. The majority of the variance between the two fiscal years is related to increased costs of onetime 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 third quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares third quarter actual results to the Target (Table 4).

Using the Target as a comparator against actual results provides a simplified method to evaluate performance for each quarter. The Target for revenues does not use the 75% Target but a Target of

64.6% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Revenue realization is typically low at the end of the third quarter of the fiscal year due to the timing of receipt of major tax revenues, the time lag involved in billing cycles, and the receipt of reimbursements. The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted Target. The Target for expenditures is calculated as three-fourths (75%) of the FY 2023-24 Budget and represents the 9-month period from July 2023 through March 2024, except for the Non-Departmental Annual Payments line that has a Target of the full budget and the Measure O 2006 Sales Tax Fund CIP allocation line that has a Target of zero as the allocation is completed in the fourth quarter. This approach decreased the Target from 75% to 59.4% for the third quarter.

ATTACHMENT 1

FY 2023-24 % of
Q3 Actuals Actuals
Personnel Costs $ 9,567,045 51.7%
Operating Costs 8,269,250 44.6%
Debt Service 301,365 1.6%
Capital Outlay 128,044 0.7%
Transfers Out 257,472 1.4%
Total $ 18,523,176
Expenditure Category
Chart 1
Chart 1 shows a simple
comparison of actual third quarter
revenue and expenditures to the
Target. The actual third quarter
Consolidated General Fund
revenue is more less the budgeted
Target by $272,842, which is not
unusual since revenue realization
is typically lower than the Target
through the third quarter due to
the time lag involved in billing
cycles and the receipt of
reimbursements. Likewise, actual
expenditures through third quarter totaled $18.5 million, or 57% of the full year’s Budget, and are under the Target by $815,047. 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 third quarter. Within
the total expenditures of $9.5 million,

51.7% of the City’s costs are associated
with personnel, 44.6% with operating
and maintenance, 1.6% for the City’s
debt service, 0.7% for Capital Outlay, and

1.4% with transfers to other funds.

Table 3 reflects the third 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.

ATTACHMENT 1

Table 3 – Consolidated General Fund Expenditures by Department Overall, third quarter expenditures were $815,047 under the Target. The majority of City departments were under their spending Targets, except for Administrative Services and Measure O 2006 Sales Tax Fund. Some of the more significant savings occurred in the Police, Public Works, Community Development, and City Administration 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 had vacancies throughout the fiscal year and one medical leave, resulting in labor savings of approximately $346,000.  The contract with the County Sheriff Department for dispatch services is paid semiannually in the months of January and June. Payments for these services will not be made until the third and fourth quarters, resulting in a third quarter favorable variance to the Target of $124,250.

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. Some of the more significant variances
City Administration $ 1,751,100 $ 1,313,325 $ 1,124,129 $ 189,196 11% Legislative & Information Services 449,460 337,095 295,701 41,394 9% Measure O 2006 Sales Tax Fund 1,269,800 952,350 1,163,271 (210,921) -17% Measure O 2006 CIP Allocation 7,715,691 - - - 0%
Administration Services 5,297,212 3,972,909 4,570,537 (597,628) -11% Non-Departmental Annual Payments 2,836,525 2,836,525 2,756,790 79,735 3% Community Development 1,996,822 1,497,617 1,100,787 396,830 20% Police Department 6,905,599 5,179,200 4,691,440 487,760 7% Recreation Services 901,370 676,028 657,026 19,002 2%
Public Works 3,430,898 2,573,174 2,163,495 409,679 12%
TOTAL EXPEDITURES 32,554,477 19,338,223 18,523,176 815,047 3% %
Fav/(Unfav)
Consolidated General Fund Department Variances - Third Quarter Consolidated General Fund
Department
2023-24
Adjusted
2023-24 Q3
Actuals
Dollar
Fav/(Unfav)
2023-24 Q3
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:
$487,760 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:
$409,679 savings

ATTACHMENT 1

include:
 The Public Works Administration Division had a vacant Public Works Director/Assistant City Manager position and had a vacant Assistant Capital Projects Manager the first half of the fiscal year additionally one employee is on medical leave resulting in labor savings of approximately $181,200.
 The Parks Division has $50,000 for Tree removal support at $50,000 for Open Space Fuel Management that will be completed in the fourth quarter of this fiscal year.  The Parks Division has savings of approximately $160,000 related to the replacement of a bucket truck that has not yet been purchased.

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 during the first half of the fiscal year resulted in a portion of the Division’s overall labor savings totaling approximately $65,000.  The Building Division contractual services has a variance of $121,300 related to the timing of invoices from CSG Consultants, the City’s building services contractor. The February and March invoices were not received until April resulting in a favorable variance.  Minimal contractual services for the Planning Division were incurred through third quarter resulting in $180,984 of favorability to the Target. The following table will summarize where these savings occurred:

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:
 The Legislative & Information Services Division had a vacant Deputy City Clerk/Communications Coordinator position for the first half of the fiscal year resulting in labor savings of approximately $24,000.
 Minimal contractual services for the City Manager Division were incurred through third quarter resulting in $18,750 of favorability to the Target related to the Economic Development Consultant budgeted to begin in the second half of the fiscal year.

Budget Target Expenditures Variance
418,182 313,637 155,011 158,626
25,000 18,750 - 18,750
15,000 11,250 7,642 3,608
458,182 343,637 162,653 180,984
On-Call Planning Services and Misc. Planning Studies
On-Call Environmental Review Services
Comprehensive General Plan Update
Planning Contractual Services
Department: Community Development
Division: Various (4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$396,830 savings
Department: City Administration
Division: Various (4001, 4002, 4003, 4099,
4101, 4110)
Issue: Overall savings in contractual services
Impact to Consolidated General Fund:
$189,196 savings

ATTACHMENT 1

 The City Council Division has a variance of $56,250 related to the timing of the Community Services Grant program and $16,125 related to the Retraining Scholarship Program being completed in the fourth quarter of the fiscal year.

The Administrative Services Department includes the
City’s Fiscal as well as Information Technology functions.

This budget included 75% of the funding for quarterly
payments to the Five Cities Fire Authority (FCFA) for the City’s share of Fire Service. The fourth quarter payment was paid at the end of March, inadvertently creating an unfavorable variance.

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 This budget included 25% of
the funding for quarterly payments to the Five Cities
Fire Authority (FCFA) for the City’s share of Fire Service.

The fourth quarter payment was paid at the end of
March, inadvertently creating an unfavorable variance.

KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – Consolidated General Fund Revenue
As reflected in Table 4, third quarter actual revenue was short of the Target by $272,842. This table uses a Target of 64.6% that more accurately reflects the anticipated revenues to be received in the third quarter of the fiscal year. Revenue realization is typically low at the end of the third quarter of the fiscal year due to the 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 third quarter compared to the Target.

Property Tax $ 6,327,486 $ 4,218,324 $ 4,528,923 $ 310,599 5% Sales Tax 5,268,158 3,073,092 2,621,045 (452,047) -9%
Measure O-06 Sales & Use Tax 2,962,000 1,727,833 1,707,910 (19,923) -1% Transient Occ. Tax 1,545,000 1,030,000 908,866 (121,134) -8% Property Tax in Lieu of VLF 2,001,300 1,000,650 1,064,557 63,907 3% Franchise Fees 795,600 530,400 454,814 (75,586) -10%
License & Permit Fees 579,500 434,625 470,699 36,074 6% User Fees 521,500 391,125 638,148 247,023 47%
Planning Fees 371,500 278,625 377,663 99,038 27%
Recreation Fees 415,867 311,900 402,453 90,553 22%
Transfers In 3,114,066 2,335,550 2,066,256 (269,294) -9% Other Revenue 992,640 744,480 562,428 (182,052) -18%
TOTAL 24,894,617 $ 16,076,604 15,803,762 (272,842) -1%
%
Fav/(Unfav)
Consolidated General Fund Revenue Variances - Third Quarter REVENUE BY CATEGORY FY 2023-24
Budget
FY 2023-24
Q3 Actuals
Dollar
(Unfav)/Fav
FY 2023-24
Q3 Target
Department: Administrative Services
Division: Various (4120, 4140)
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$597,628 overage
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:
$210,921 overage

ATTACHMENT 1

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 date of November 1st. The majority of property tax related to the first installment was 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 eight months of Property Tax revenue. Actual revenue received in this category was higher than the Target.

Sales Tax and Measure O 2006 Sales Tax Fund – Sales tax is lower than anticipated, while Measure O 2006 Sales Tax realization through third quarter is on track. Actual sales tax revenue received through third quarter was $2.6 million and Measure O 2006 Sales Tax revenue received through third quarter was $1.7 million which represents seven months of payments (July-January). The Target is also based on seven months of revenue, taking into account the timing of anticipated payments.

Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $121,134 unfavorable variance to the Target. The Target and actual TOT revenue represents only eight months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments.

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

Franchise Fees – Only eight months of Waste Water Connection franchise fees were received through third quarter. In addition, Charter Communications franchise fees earned in the third quarter will not be paid and received until the fourth quarter. In light of the timing of payments, the Target is based on eight months of revenue. Without the Charter communications franchise fee receipts, the actual revenue at the end of the third quarter is lower than the Target by $75,586.

License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is above the Target by $36,074. User fee revenue is above the Target by $247,023. Planning revenue exceeded the Target by $99,038. The Target is based on 75% or nine 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 $90,553. The Target is based on nine 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

ATTACHMENT 1

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 $280,000.

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

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

EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the third quarter of FY 2023-24 was 5.1%. This equates to two vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of period. The costs associated with turnover includes the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.

Department
Adopted Budget
Headcount (FTE’s)
Vacancies
(3rd Qtr)
% of
Total Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 - 9%
Community Development 10 - 13%
Legislative & Info Services 2 - 3%
Police Services 29 3 37% Police Officer (3)
Public Works 24 1 31% Engineering Inspector
Recreation Services 3 - 4%
Total 78 4 100%

ATTACHMENT 1

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

Project Fund
Budget FY
2023-24
Current
Status
Project Budget
Expended
191 Tally Ho Sales Tax $ 110,000 Complete $ 82,615
Lift Station 3
FEMA/CalOES/Sales
Tax $ 850,000 Complete $ 67,475
Financial Management Software Sewer/Water/Sales Tax $ 413,000 In Progress $ 66,038 Women's Club Lighting Project Donations $ 821 In Progress $ - Public Safety Video Cameras COPS/Sales Tax $ 1,125,000 In Progress $ 126,458 Replacement Generator at Fire Station 1
Other Gov
Agencies/General/Sales
Tax $ 610,714 In Progress $ 325,674
Arroyo Grande Creek Remediation
Sales Tax, FEMA,
CalOES $ 400,000 In Progress $ 188,638
Active Transportation Plan ATP/Sales Tax $ 250,000 In Progress $ 48,414 Bridge Street Bridge Habitat Mitigation HBP $ 100,290 In Progress $ 102,799 Swinging Bridge Rehabilitation Sales Tax $ 1,100,292 In Progress $ 30,614 Arroyo Grande Creek Stabilization Sales Tax $ 6,300 In Progress $ 20,826 Pavement Management Program
USHA/General/SB1/Sale
s Tax/General Fund $ 6,825,153 In Progress $ 4,221,131
Sidewalk Repairs and Improvements Sales Tax/CDBG $ 586,644 In Progress $ 462,523 Traffic Way Bridge Replacement HBP/Sales Tax $ 1,165,593 In Progress $ 219,971 Trenchless Sewer Rehabilitation -El
Camino Real to West Branch St. ARPA $ 282,000 In Progress $ 13,096 Phased Mains Replacement - South
Halcyon Road, Cornwall Street to Fair
Oaks Avenue Water Facility/ARPA $ 785,892 In Progress $ 705,531 Phased Main Replacement - Highway
101 Crossing Upgrade, El Camino
Real to West Branch Street ARPA/Water Fund $ 335,000 In Progress $ - Fire Station 1 Apparatus Bay Doors Sales Tax $ 115,000 In Progress $ - Galvanized Service Replacements Water $ 63,655 In Progress $ - Fair Oaks Ave Active Transportation
Improvements, Valley Road to Traffic
Way
Developer/Other Gov
Agencies/Sales Tax $ 125,000 Not started $ -
Virginia Drive and S. Halcyon Road Curb
Ramp and Sidewalk Improvement CDBG $ 56,749 Not Started $ - Public Works Office Space Remodel Sales Tax $ 100,000 Not Started $ - City Hall Front Door ADA (CDBG) CDBG $ 53,341 Not Started $ - Recreation Services / Community
Center Building Sales Tax $ 44,745 Not Started $ -
Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe
Routes to
School/General/Sales
Tax/ATP $ 1,304,000 Not Started $ 2,764
Water Well #11 Facilities Water Availability $ 42,771 Not Started $ -

ATTACHMENT 1

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

Administrative Services Department: Appropriated funds for 6 budget adjustments reviewed in the Second Quarter Financial Status Report. The overall impact to the budget increased the Consolidated General Fund expenditures by $185,310, COPS Fund expenditures of $25,000, Water Fund expenditures of $13,975, and Sewer Fund expenditures of $20,000, as reflected in the following table:

Approved at the February 27, 2024, City Council meeting, Item 9.b.

Additional Requested Third Quarter Budget Adjustments
In addition to the administrative budget adjustments previously-approved by the City Council during the third quarter, two budget adjustment is proposed for approval along with the review and receipt of this report.
 Capital Improvement Program: Reallocate $10,000 from the 2022 Pavement Management Program to the Corrugated Metal Pipe (CMP) project this fiscal year will enable the City to capitalize on the presence of a contractor with video equipment completing work on the sewer trenchless repair project to gather information necessary for FY 2024-25 CMP lining scheduled for next fiscal year. Using this contractor will save mobilization costs for both evaluation and construction and enables us to create a larger lining construction project that includes lining both sewer and storm drain lines. A larger project will attract more contractors to the bidding process and will result in a more cost-efficient result.  Capital Improvement Program: Reallocate $291,200 from the Phased Main Replacement under Highway 101 to Crossing Upgrade project that has not yet started to the other two Phased Main Replacement projects that are near completion or expected to be completed in the ARPA deadline timeframe. This shift of project funding would ensure that the ARPA funds allocated to water infrastructure would be spent as anticipated. The table below shows the Current allocation and proposed allocation:

Request Revenue Expenditure
General
Fund Impact
COPS
Fund
Water
Fund
Sewer Fund
Impact
Building Contractual Services 123,700 185,000 23,000 - - - City Attorney Contract Costs - 150,000 150,000 - - -
Escribe Webcasting Module - 12,310 12,310 - - -
Police Equipment - 25,000 - 25,000 - -
Central Coast Blue (CCB) Operating Costs - 13,975 - - 13,975 - Lift Station #1 Pump Repair - 20,000 - - - 20,000
Totals 123,700 406,285 185,310 25,000 13,975 20,000
Water Infrastructure Projects Current Proposed
Phased Main Replacement
Fair Oaks - Elm to Alder 480,250 705,500
Cornwall St - S. Halcyon to El Camino Real 578,700 644,650 Highway 101 Crossing Upgrade - El Camino Real to W. Branch 291,200 1,350,150 1,350,150

ATTACHMENT 1

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.

CMO City Manager's Office
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

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start
Original
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/Rec/LIS In Progress 2Q FY 2023-24 Completed

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

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

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 Completed

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 In Progress

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 In Progress 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 3Q FY 2023-24 4Q FY 2023-24 Completed

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start
Original
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 Completed

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 Completed

3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover CD/PW 3Q FY 2023-24 3Q FY 2023-24 Completed

3.3b.iii. Swinging Bridge Construction New CD/PW 4Q FY 2023-24 2Q FY 2024-25 In Progress

ATTACHMENT 1

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

3.3c Halcyon Complete Streets New CD/PW In Progress

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 Not started

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 Completed

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 In Progress

3.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 1Q FY 2024-25 Not started

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 Completed

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 In Progress

3.3n CMP Lining New CD/PW 1Q FY 2024-25 Ongoing Not started Infrastructure (continued)

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start
Original
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 Completed

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 In Progress

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

1 Item 9.d.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
April 23, 2024, 6:00 p.m.

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

1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:05 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW
Council concurred to hear Item 10a after Item 12.b.; and to hear Item 13 before Item 8.

5.a Closed Session Announcements
None.

2 Item 9.d.

5.b Ordinances read in title only
None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring May 2024 as "Asian American and Native Hawaiian/Pacific Islander Heritage Month"
Mayor Ray Russom read the Honorary Proclamation Declaring May 2024 as "Asian American and Native Hawaiian/Pacific Islander Heritage Month". Kathy Mink, Diversity Coalition, accepted the proclamation.

No action was taken on this item.

6.b Honorary Proclamation Declaring May 2024 as "Mental Health Awareness Month" Mayor Ray Russom read the Honorary Proclamation Declaring May 2024 as "Mental Health Awareness Month". Jeannine Simon, accepted the proclamation.

No action was taken on this item.

6.c Honorary Proclamation Declaring May 5-11, 2024 as "Public Service Appreciation Week" Mayor Ray Russom read the Honorary Proclamation Declaring May 5-11, 2024 as "Public Service Appreciation Week". City Manager Downing, accepted the proclamation.

No action was taken on this item.

6.d City Manager Communications
City Manager Downing provided department updates including the pavement protective slurry seal project, Traffic Way Bridge Replacement Project community meetings, construction for Swinging Bridge Rehabilitation Project timeline; workshops for ADUs, and stated that the newly appointed FCFA Chief Scott Hallett will begin his employment on April 29th.

Mayor Ray Russom 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.

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)

3 Item 9.d.

6. Other

7.b MAYOR PRO TEM GUTHRIE:

1. County Water Resources Advisory Committee (WRAC)

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

3. Integrated Waste Management Authority Board (IWMA)

4. REACH Economic Development Roundtable

5. Other

7.c COUNCIL MEMBER BARNEICH:

1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

7.d COUNCIL MEMBER GEORGE:

1. Five Cities Fire Authority

2. Visit SLO CAL Advisory Board

3. 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 Ray Russom invited public comment. Speaking from the public were Gaea Powell, Michael Punzelon, No Name Provided, Ashley, No Name Provided, Alexandria, Glenn Miller, and Brenton Tarrant. City Attorney Rosen made a statement to virtual public commenters that public comment needs to be within the purview of City business and if a speaker engages in irrelevant speech, meaning speech not on the topic of the specific item or speech that doesn't fall within City business, including hate speech, the speaker will be given one warning. If the irrelevant speech continues, the speaker's permission to speak will be removed.

Public comment continued with Brenton Tarrant.

Mayor Ray Russom suspended public comment until the end of the meeting.

4 Item 9.d.

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

Mayor Ray Russom pulled Item 9.d. for separate consideration.

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

Moved by Council Member Barneich
Seconded by Council Member Secrest
Approve Consent Agenda Items 9.a. through 9.f., with the exception of Item 9.d., with the recommended courses of action.

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

9.a Consideration of Cash Disbursement Ratification
Ratified the listing of cash disbursements for the period of March 16 through March 31, 2024.

9.b Approval of Minutes
Approved the minutes of the Regular City Council Meeting of April 9, 2024, as submitted.

9.c Consideration of Cancellation of July 9, 2024 City Council Meeting Cancelled the regularly scheduled City Council meeting of July 9, 2024.

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

9.f Consideration of Acceptance of the 2022 Concrete Repair Project, PW 2022-07 1) Accepted the project improvements as constructed by JJ Fisher Construction, Inc. in accordance with the plans and specifications for the 2022 Concrete Repair Project, PW 2022- 07;
2) Directed staff to file a Notice of Completion; and
3) Authorized release of retention, thirty-five (35) days after the Notice of Completion has been recorded if no liens have been filed.

9.d Review and Adoption of a Resolution Authorizing the Recurring Annual Display of Specified Commemorative Flags at City Hall and Heritage Square Park Mayor Ray Russom invited public comment. City Attorney Rosen reminded speakers about keeping public comment within the purview of City business. Speaking from the public were Jules, Yvonne Kendall, Milo, No Name Provided, Steve, Gene Quail, Kara Woodruff, Adam Passion, Gina Whitaker, Jeanine Santos, Ashley, Chris Bersbach, No Name Provided, Kimberly,

5 Item 9.d.

Shannon, Dave Pomeroy, Patty Welsh, Julia Vogue, Patrick, Alexandria, Ren Leonard, Heather Bonner, Bob Miller, Karen Miller, Eli Osborne, Nate McDonald, Vita Miller, Dave, Lilly Norcross, No Name Provided, Jamie, J-Bird, Jason, Anthony Page, Ace Scorcilia, Dusty Collier-Worth, Arlen, Gaea Powell, and Scott Thompson.

Mayor Ray Russom called for a brief break at 8:04 p.m. The Council reconvened at 8:11 p.m.

Public comment continued after the break. Speaking from the public were Greg Dutson, Gabe Stutman, Danika Cornejo, Sadie Envird, Roman Chadwell, Judy Stroyer. City Attorney Rosen made a statement to virtual public commenters that public comment needs to be within the purview of City business and if a speaker engages in irrelevant speech, meaning speech not on the topic of the specific item or speech that doesn't fall within City business, including hate speech, the speaker will be given one warning. If the irrelevant speech continues, the speaker's permission to speak will be removed.

Mayor Ray Russom commented on hate speech and read a statement into the record.

Public comment continued. Speaking from the public was Levi, Fred Leuchter, Lisa Jouette, Liz Worthen, No Name Provided, No Name Provided, and Brenton Tarrant. City Attorney Rosen gave warnings regarding public comment speech. No further public comments were received.

Council discussion ensued.

Moved by Council Member Barneich
Seconded by Council Member Secrest
Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE, CALIFORNIA AUTHORIZING THE RECURRING ANNUAL DISPLAY OF SPECIFIED COMMEMORATIVE FLAGS AT CITY HALL AND HERITAGE SQUARE PARK" AYES (5): Council Member Barneich, Council Member Secrest, Council Member George, Mayor Pro Tem Guthrie, and Mayor Ray Russom
Passed (5 to 0)

10. PUBLIC HEARINGS

10.a Public Hearing to Consider Adoption of Resolutions Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) and Approving the AGTBID Budget for FY 2024-25
This item was heard after Item 12.b.

Council Member Barneich recused herself due to ownership of a short-term rental and left the meeting.

Mayor Ray Russom recused herself due to ownership of a short-term rental and left the meeting.

Mayor Pro Tem Guthrie presided over the meeting.

6 Item 9.d.

Recreation Services Director Bohlken presented the report and responded to questions from Council.

Mayor Pro Tem Guthrie opened the public hearing. Speaking from the public were Jared Worthen, and Sean Dasmann. Upon hearing no further public comments, Mayor Pro Tem Guthrie closed the public hearing. City Clerk Matson announced that one protest was received, but that it did not constitute 50% of the assessment and therefore a valid protest did not exist.

Council discussion ensued regarding the budget amount proposed for event sponsorships.

Moved by Council Member George
Seconded by Mayor Pro Tem Guthrie
Adopt a Resolution: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE 2024-25 FISCAL YEAR;" adopt a Resolution: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2024-25 BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT" with the modification to reduce the event sponsorships to $50,000; and Determine that conducting a public hearing to adopt a Resolution to levy and collect assessments and adopting a Resolution to approve the AGTBID operating budget is not subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15061, subd. (b)(2)-(3), 15378.).

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

10.b Public Hearing to Consider a Resolution of Necessity for Acquisition by Eminent Domain of Temporary Construction Easement Interests in Certain Real Property for the Traffic Way Bridge Replacement Project
This item was heard after the Consent Agenda.

City Engineer Sweeney presented the staff report.

City Clerk Matson announced that notices were sent to all five property owners and an affidavit of mailing was completed; and announced that no protests were received.

Lillian Jewell, Right-of-Way Consultant, responded to questions from Council.

Mayor Ray Russom opened the public hearing. Speaking from the public were Alexandria and Mary Phagan. City Attorney Rosen made a statement to the virtual public commenter that public comment needs to be within the purview of City business and if a speaker engages in irrelevant speech, meaning speech not on the topic of the specific item or speech that doesn't fall within City business, including hate speech, the speaker will be given one warning. If the irrelevant speech continues, the speaker's permission to speak will be removed. Public comment

7 Item 9.d.
continued with Mary Phagan. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing.

Moved by Council Member Barneich
Seconded by Council Member George
Adopt a Resolution entitled: "RESOLUTION OF NECESSITY OF THE CITY OF ARROYO

GRANDE FOR THE ACQUISITION BY EMINENT DOMAIN, IF NECESSARY, OF

TEMPORARY CONSTRUCTION EASEMENT INTERESTS IN PORTIONS OF CERTAIN REAL PROPERTY, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NO’S. 007-482- 006, 007-481-011, 007-482-026, 006-311-056 AND 006-311-067, FOR THE TRAFFIC WAY BRIDGE PROJECT, IN ARROYO GRANDE, CALIFORNIA; AND FINDING THAT NO

FURTHER ENVIRONMENTAL REVIEW IS REQUIRED PURSUANT TO PUBLIC RESOURCES CODE SECTION 21166 AND STATE CEQA GUIDELINES SECTION 15162".

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

11. OLD BUSINESS
None.

12. NEW BUSINESS

12.a Consideration of the 5-Year Capital Improvement Program Budget and 5-Year Measure O 2006 Sales Tax Fund Expenditure Program
Administrative Services Director Valentine and Assistant City Manager/Public Works Director Robeson presented the report and responded to questions from Council.

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

Moved by Mayor Pro Tem Guthrie
Seconded by Council Member Barneich
Direct staff to proceed with the 5-Year CIP Budget and the expenditures funded by the 5-Year Measure O 2006 Sales Tax Fund Expenditure Program.

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

12.b Consider Results of Community Survey for a Potential Future Revenue Measure City Manager Downing presented the report and responded to questions from Council.

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

8 Item 9.d.

No action was taken. This item was received and filed.

13. COUNCIL COMMUNICATIONS
This item was heard after Item 7.

None.

14. ADJOURNMENT
Mayor Pro Tem Guthrie returned to Item 8 Community Comments and Suggestions and asked if there were any further public comments. Upon hearing none, Mayor Pro Tem Guthrie closed public comment.

There being no further business to come before the City Council, Mayor Pro Tem Guthrie adjourned the meeting at 10:27 p.m.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director SUBJECT: Consider Adoption of Resolutions Ordering the Preparation and Filing of Annual Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting District No. 1, Within Tract 1769, for Fiscal Year DATE: May 14, 2024
RECOMMENDATION:
1) Adopt Resolutions ordering the preparation and filing of Annual Engineer’s Reports for the Parkside Village Assessment District (“Parkside Village”), Grace Lane Assessment District (“Grace Lane”), and Landscaping and Lighting Assessment District No. 1, within Tract 1769 (“Tract 1769”), for FY 2024-25; and
2) Determine that adopting the Resolutions ordering the Engineer’s reports 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.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

For Fiscal Year (FY) 2024-25 the total budgets for the three subject Assessment Districts are proposed to be:
 Parkside Village Assessment District $ 284,680
 Grace Lane Assessment District $ 16,135
 Landscaping and Lighting Assessment District No. 1 (Tract 1769) $ 7,100 BACKGROUND:

The California Landscape and Lighting Act of 1972 (California Streets and Highways Code section 22500 et seq., the “Act”) allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas. Accordingly, the City formed the following three separate assessment districts in compliance with the Act:

Item 9.e.

City Council
Consider Adoption of Resolutions Ordering the Preparation and Filing of Annual Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting District No. 1, Within Tract 1769, for Fiscal Year
May 14, 2024

Tract Number Assessment District Name Date formed
Tract 2310 Parkside Village Assessment District November 8, 2005 Tract 2236 Grace Lane Assessment District November 28, 2006 Tract 1769 LLD No. 1 (Tract 1769) May 12, 1992
The Act requires that the City complete the following process each fiscal year in order to levy and collect assessments:

1. Adopt a Resolution describing any proposed new improvements or any substantial changes in existing improvements and ordering preparation and filing of an Engineer’s Report.

2. Approve the Engineer’s Report and adopt a Resolution of Intention. The Resolution of Intention declares the City Council’s intention to levy and collect assessments under the subject assessment districts for the upcoming fiscal year. It also states whether the assessment is proposed to change from the previous year and sets a date, hour, and place for a public hearing.

3. Conduct the public hearing affording all interested parties the opportunity to hear and be heard.

4. Adopt a Resolution confirming the assessment, which constitutes the levy of the assessments for FY 2024-25.

Upon fulfillment of these requirements, the City must submit the Resolution confirming the assessments to the County of San Luis Obispo for inclusion on the FY 2024-25 property tax roll.

ANALYSIS OF ISSUES:

The first step in the statutorily prescribed process contained in the Act requires that the City adopt a Resolution describing any proposed new improvements or any substantial changes in existing improvements and ordering the preparation and filing of an Engineer’s Report. The subject assessment districts are largely responsible for covering expenses related to maintaining the public landscaping within the defined boundaries of the separate districts.

No new improvements or substantial changes in existing improvements are proposed for the Grace Lane or Tract 1769 Assessment Districts for FY 2024-25. However, the Parkside Village Assessment District’s playground structures and surfacing need replacement. This smaller pocket park playground, which is on Parkside Village property, is not considered a new improvement since it is replacing an older playground and is not considered a substantial change to existing improvements since the size of the park will remain the same and will not be expanded. Parkside has a fund balance of $489,296 as of June 30, 2023 to accommodate a project of this size. Staff has communicated with a

Item 9.e.

City Council
Consider Adoption of Resolutions Ordering the Preparation and Filing of Annual Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting District No. 1, Within Tract 1769, for Fiscal Year
May 14, 2024

representative of the Parkside neighborhood to begin developing expectations of the playground project. Further neighborhood consensus building will begin in the next few months. Staff will work with the consulting engineer to develop an estimated cost.

ALTERNATIVES:

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

1. Adopt Resolutions ordering the preparation and filing of Annual Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District and Landscaping and Lighting Assessment District No. 1, within Tract 1769, for FY 2024-25;

2. Modify and adopt the Resolutions;

3. Do not adopt the Resolutions; or

4. Provide other directions to staff.

ADVANTAGES:

Adoption of the Resolutions describing the existing improvements and ordering the preparation and filing of an Engineer’s Report will comply with California Streets and Highways Code, Section 22622 and is the first step required in the levy of assessments.

DISADVANTAGES:

No disadvantages for this proposed action have been identified.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item. Adopting the resolutions 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 – Grace Lane

2. Proposed Resolution – Parkside Village

3. Proposed Resolution – Landscaping and Lighting District No. 1 – Tract 1769

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE ORDERING THE PREPARATION
AND FILING OF THE ANNUAL ENGINEER’S REPORT

FOR THE GRACE LANE ASSESSMENT DISTRICT FOR
FISCAL YEAR 2024-2025
WHEREAS, the owner (Vista Roble, LLC) of Lots 1 through 19, Tract 2236, petitioned the City to form a maintenance assessment district, commonly referred to as the Grace Lane Assessment District to provide a means to finance the costs of maintenance, operation, and service of certain specified improvements; and WHEREAS, on November 28, 2006, the City Council of the City of Arroyo Grande adopted Resolution No. 3976 ordering the formation of the Grace Lane Assessment District under Part 2 of Division 15 of the California Streets and Highways Code section 22500 et seq. (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the said improvements in the Grace Lane Assessment District include, but are not limited to: 1) a pedestrian trail across the open space property (Lot B) including, but not limited to, the existing informal hiking trail currently passing through Lot B, signage, fencing; 2) common areas and facilities, including but not limited to the open space parcels and drainage facilities; 3) open space and maintenance thereof in accordance with fuel modification specifications as described in Mitigation Measure No. 15 in Resolution No. 3732 of the City Council of the City of Arroyo Grande; and 4) a private drive and associated improvements for Lots 16 through 19; and WHEREAS, in order to levy and collect an annual assessment for the Grace Lane Assessment District, it is necessary for the City to comply with Streets and Highways Code, Section 22620 et seq.; and
WHEREAS, Streets and Highways Code Section 22622 requires the City to adopt a Resolution that generally describes any proposed new improvements or any substantial changes in existing improvements and order the preparation and filing of an engineer’s report; and
WHEREAS, the City Council, at its meeting of May 14 2024, received a report from the Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for the Grace Lane Assessment District; and
WHEREAS, 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

RESOLUTION NO.

PAGE 2
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, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

2. Pursuant to Streets and Highways Code Section 22622, the City Council determines that no new improvements or any substantial changes in existing improvements are proposed within the boundaries of the Grace Lane Assessment District in Fiscal Year 2024-25.

3. The City Council orders the preparation and filing of an Engineer’s Report for the Grace Lane Assessment District in accordance with Streets and Highways Code Section 22565 et seq.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 14 th day of May, 2024.

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE ORDERING THE PREPARATION
AND FILING OF THE ANNUAL ENGINEER’S REPORT

FOR THE PARKSIDE VILLAGE ASSESSMENT DISTRICT
FOR FISCAL YEAR 2024-2025
WHEREAS, the owner (Parkside Village, LLC) of Lots 1 through 67, Tract 2310, requested the City form an assessment district, commonly referred to as the Parkside Village Assessment District to provide a means to finance the costs of maintenance, operation, and service of certain specified improvements; and WHEREAS, on November 8, 2005, the City Council of the City of Arroyo Grande adopted Resolution No. 3888 ordering the formation of the Parkside Village Assessment District under Part 2 of Division 15 of the California Streets and Highways Code section 22500 et seq. (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the said improvements in the Parkside Village Assessment District include but are not limited to: landscaping bordering Farroll Road, Bakeman Road Entrances, behind and along Bakeman Lots 10, 11, 12 and 13 of Phase 1, mini park pedestrian pathway easement and drainage basin; fencing, gates and walls bordering Farrol Road, Bakeman Road Entrances, behind and along Bakeman Lots 10, 11, 12 and 13, park and drainage basin; the pathway easement, lighting and all improvements between lots 1, 2, and 3 between Dixson Street and the mini park, the mini park and all improvements to include walkways, play area, benches and basketball court on Lot 24; the drainage retention basin and all improvements including the water separator on Lot 25 and French drains along the East boundary of Tract 2310-2; and WHEREAS, in order to levy and collect an annual assessment for the Parkside Village Assessment District, it is necessary for the City to comply with Streets and Highways Code, Section 22620 et seq.; and
WHEREAS, Streets and Highways Code Section 22622 requires the City to adopt a Resolution that generally describes any proposed new improvements or any substantial changes in existing improvements and order the preparation and filing of an engineer’s report; and
WHEREAS, the City Council, at its meeting of May 14, 2024, received a report from the Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for the Parkside Village Assessment District; and

RESOLUTION NO.

PAGE 2
WHEREAS, 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, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

2. Pursuant to Streets and Highways Code Section 22622, the City Council determines that no new improvements or any substantial changes in existing improvements are proposed within the boundaries of the Parkside Village Assessment District in Fiscal Year 2024-25.

3. The City Council orders the preparation and filing of an Engineer’s Report for the Parkside Village Assessment District in accordance with Streets and Highways Code Section 22565 et seq.

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 14 th day of May 2024.

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 3
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE ORDERING THE PREPARATION

AND FILING OF THE ANNUAL ENGINEERS REPORT

FOR THE ARROYO GRANDE LANDSCAPING AND
LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN
TRACT 1769, FOR FISCAL YEAR 2024-2025
WHEREAS, the property owners of Arroyo Grande, Tract 1769, petitioned the City to form a landscaping and lighting assessment district, commonly referred to as Landscaping and Lighting Assessment District No. 1, within Tract 1769, to provide means to finance the costs of maintenance, operation, and service of certain specified improvements; and
WHEREAS, on May 12, 1992, the City Council of the City of Arroyo Grande adopted Resolution No. 2932 ordering the formation of Arroyo Grande Landscaping and Lighting Assessment District No. 1, within Tract 1769, under Part 2 of Division 15 of the California Streets and Highways Code section 22500 et seq. (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, said improvements in the Landscaping and Lighting Assessment District No. 1 include but are not limited to: landscaping and ornamental vegetation in the public rights of way; and
WHEREAS, in order to levy and collect an annual assessment for Landscaping and Lighting Assessment District No. 1, it is necessary for the City to comply with Streets and Highways Code, Section 22620 et seq.; and
WHEREAS, Streets and Highways Code Section 22622 requires the City to adopt a Resolution that generally describes any proposed new improvements or any substantial changes in existing improvements and order the preparation and filing of an engineer’s report; and
WHEREAS, the City Council, at its meeting of May 14, 2024, received a report from the Public Works Director advising the City Council that no new improvements or substantial changes in existing improvements are proposed for Landscaping and Lighting Assessment District No. 1, within Tract 1769; and WHEREAS, 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.)

RESOLUTION NO.

PAGE 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:

1. The foregoing recitals are true and correct and are incorporated herein.

2. Pursuant to Streets and Highways Code Section 22622, the City Council determines that no new improvements or any substantial changes in existing improvements are proposed within the boundaries of Landscaping and Lighting Assessment District No. 1, within Tract 1769 in Fiscal Year 2024-25.

3. The City Council orders the preparation and filing of an engineer’s report for Landscaping and Lighting Assessment District No. 1, within Tract 1769, in accordance with Streets and Highways Code Section 22565 et seq.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 14 th day of May 2024.

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shannon Sweeney, City Engineer
SUBJECT: Consider Traffic Way Bridge Temporary Construction Easement Execution
DATE: May 14, 2024
RECOMMENDATION:

Authorize the City Manager to fully execute temporary construction easements (TCEs) for certain real property, more particularly described as Assessor Parcel Numbers 006- 311-056, 007-482-026, 007-481-007, 007-481-008, 007-481-009, 007-482-020, and 007- 482-018, that are necessary for the Traffic Way Bridge Replacement Project.

On September 26, 2023, the City Council adopted an MND for the Traffic Way Bridge Replacement Project (SCH No. 2022060452). The MND analyzed the environmental impacts of the Project in compliance with the California Environmental Quality Act (CEQA). Securing these TCEs, which is part of an important and necessary step towards construction of the Project, will have no direct or indirect physical impacts and does not constitute a substantial change to the Project such that revisions to the previously adopted MND are required. In fact, this action is taken pursuant to, and in conformity with, the analysis contained within the previously adopted MND. Thus, none of the conditions requiring subsequent environmental review called out in State CEQA Guidelines section 15162 or Public Resources Code section 21166 are present, and no further environmental review is required.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Adequate funding for right-of-way acquisition costs was appropriated in the FY 2023-25 CIP Budget. Costs associated with these TCEs are listed in Table 1.

Item 9.f.

City Council
Consider Traffic Way Bridge Temporary Construction Easement Execution May 14, 2024

Table 1: TCE Costs
Name Assessor’s Parcel number(s) Amount
Dohi 006-311-056 $20,000
Hansen 007-452-026 $20,000
Cole 007-481-007 $2,268
Frietas 007-481-008 $2,500
Fernandez 007-481-009 $9,936
Lemos 007-482-018, -020 $4,356

88.53% of cost for securing these TCEs is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing these TCEs at this time helps to maintain the current funding and construction schedule.

BACKGROUND:

Traffic Way Bridge was first constructed over Arroyo Grande Creek in 1932. The Bridge is programmed for replacement in calendar year 2025.

On July 24, 2018, the City Council approved agreements to allow the City to seek reimbursement from the Local Highway Bridge Program for the Project. This funding will cover 88.53% of the bridge replacement cost, with the balance coming from local funds.

Bridge replacement design and plans and specifications development is underway and approaching the 95% completion level. These design plans confirm that TCEs across nine properties are needed to complete Project construction.

On January 25, 2023, staff received notice from Caltrans that the Federal Highway administration authorized right-of-way funding for the Project, which allowed the City to begin reimbursable work for the right-of-way phase of the Project.

On September 26, 2023, the City entered into an agreement with Hamner, Jewell, and Associates. Since then, the right-of-way consultant has been working diligently to procure preliminary title reports and third-party appraisals. In March 2024, the consultant presented offers based on appraisals to all nine property owners with TCE offer letters.

As of May 9, 2024, six of the property owners have signed TCE agreements.

Negotiations continue with the three remaining property owners and staff anticipates that TCE agreements will be signed by the three remaining properties. At such time, the TCEs will be brought forward to City Council for authorization to execute.

ANALYSIS OF ISSUES:

The attached six TCEs have already been signed by their respective property owners.

Authorizing staff to execute these TCEs allows for access to and staging for the Traffic Way Bridge Replacement Project.

Item 9.f.

City Council
Consider Traffic Way Bridge Temporary Construction Easement Execution May 14, 2024

ALTERNATIVES:

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

1. Authorize the City Manager to fully execute the attached TCEs;

2. Do not authorize the City Manager to fully execute the attached TCEs; or

3. Provide other direction to staff.

ADVANTAGES:

Securing these TCEs allows for access to and staging for the Traffic Way Bridge Replacement Project. 88.53% of cost for securing these TCEs is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing these TCEs at this time helps to maintain the current funding and construction schedule.

DISADVANTAGES:

No disadvantages have been identified.

ENVIRONMENTAL REVIEW:

On September 26, 2023, the City Council adopted an MND for the Traffic Way Bridge Replacement Project (SCH No. 2022060452). The MND analyzed the environmental impacts of the Project in compliance with the California Environmental Quality Act (CEQA). Securing these TCEs, which is part of an important and necessary step towards construction of the Project, will have no direct or indirect physical impacts and does not constitute a substantial change to the Project such that revisions to the previously adopted MND are required. In fact, this action is taken pursuant to, and in conformity with, the analysis contained within the previously adopted MND. Thus, none of the conditions requiring subsequent environmental review called out in State CEQA Guidelines section 15162 or Public Resources Code section 21166 are present, and no further environmental review is required.

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. Temporary Deed and Easement Documents for APN 006-311-056

2. Temporary Deed and Easement Documents for APN 007-482-026

3. Temporary Deed and Easement Documents for APN 007-481-007

4. Temporary Deed and Easement Documents for APN 007-481-008

5. Temporary Deed and Easement Documents for APN 007-481-009

6. Temporary Deed and Easement Documents for APNs 007-482-018, -020

ATTACHMENT 1

ATTACHMENT 2

ATTACHMENT 3

ATTACHMENT 4

ATTACHMENT 5

ATTACHMENT 6

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
SUBJECT: Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
DATE: May 14, 2024
RECOMMENDATION:
1) Introduce an Ordinance amending Section 16.16.200 of the Arroyo Grande Municipal Code regarding public art, including but not limited to, murals; 2) Adopt a Resolution amending the Public Art Guidelines and Public Art Donation Program; and
3) Determine that the amendments to the Public Art Guidelines and Public Art Donation Program are not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No financial impact is projected other than staff time to review the amendments, prepare staff reports, and present the changed regulations to Planning Commission and City Council.

BACKGROUND:

In 2002, the City Council approved an Art in Public Places Program and process. The Program and process were prepared with the assistance of the San Luis Obispo County Arts Council and an Art Donation Program was approved by the City Council in 2006. In 2011, the Art in Public Places Program was renamed to the Public Art Guidelines and was amended to apply to public art projects on private property. During this update, public art on private property was defined as art that is displayed in an open area that is freely available to the general public or where public accessibility is provided based upon the characteristics of the artwork or its placement on the site. For the purposes of discussion, the “Guidelines” refers to both the Public Art Guidelines and the Public Art Donation Program.

On October 12, 2021, the Guidelines were amended to apply to public art proposals on non-residentially zoned property. Public art on privately-owned residential property was removed from the Guidelines to clarify that residential property was excluded. In addition,

Item 10.a.

City Council
Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
May 14, 2024

changes were made to the City’s advisory bodies and those that provide consultation to the Council on public art projects. Following the update, Arroyo Grande Public Art (“AGPA”) was charged with making advisory recommendations to the City Council. Lastly, the Guidelines established a seven (7) member Public Art Panel for the purpose of approving proposed art projects.

Arroyo Grande Municipal Code (AGMC) Section 16.16.200 establishes a process for the review and approval of murals. Under the current process, the Community Development Director (Director) approves mural applications, with a recommendation from the Architectural Review Committee (ARC). By contrast, the Guidelines require City Council to approve public art with a recommendation from AGPA. Additionally, the review criteria in AGMC 16.16.200 differs from the criteria contained in the Guidelines. This code amendment aims to consolidate these two approval processes to improve the process of applying to create public art.

City Council Study Session
Staff presented revised Guidelines to City Council at a study session on March 12, 2024, to discuss amending the AGMC and Guidelines so they operate through a single approval process. After the study session, staff updated the Guidelines to align with the direction from the City Council and scheduled the project for Planning Commission.

Planning Commission
On April 16, 2024, the Planning Commission held a public hearing on the proposed amendment to Section 16.16.200. Although approval of amendments to the Guidelines were not technically within the purview of the Planning Commission, the proposed Guidelines amendments were provided to the Commission to add context to the revisions to the Municipal Code. The Planning Commission recommended that the City Council adopt the amendments to Section 16.16.200 of the AGMC with no changes to staff’s proposal.

ANALYSIS OF ISSUES:

AGMC Section 16.16.040 requires amendments to Title 16 of the Municipal Code to be approved by City Council, after a recommendation from the Planning Commission is obtained. AGMC Section 16.16.200 has been amended in accordance with the City Council’s direction so that it applies more generally to all forms of public art, rather than murals specifically. This Code section also now refers to the Guidelines for information about application requirements and overall review and approval process. Attachment 1 contains the proposed amendments to this Code section in strikethrough and underline to highlight the changes to the text.

The Guidelines are intended to facilitate and encourage outdoor public art on City property, in the public right of way, or on private property with non-residential uses that is visible from the public right-of-way. The purpose of proposing amendments to the

Item 10.a.

City Council
Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
May 14, 2024

Guidelines is to 1) provide a single process for approval of public art; and 2) update design criteria to guide those applying for a permit and reviewing bodies when evaluating applications for public art.

Proposed Selection Criteria
The existing criteria are recommended to be replaced with additional, more robust reviewing criteria shown below. The proposed criteria will provide additional guidance to those responsible for reviewing applications. The criteria are as follows:

1. Evaluation of artistic excellence, examining:
a. The artist’s qualifications, including education, training, experience, body of work, recognition of the artist, and the consistency of the artist’s qualifications with the stated goals of the project;
b. The artist’s record of previous collaboration with other agencies, organizations, artists, fabricators, installers to achieve a successful result in implementing the proposed project;
c. The artist’s experience working in the public realm; d. To the extent applicable, the artist’s previous proven successful experience in creating producing or otherwise implementing projects similar to the one proposed;
e. The original nature of the proposed concept;
f. The inherent artistic quality and aesthetic merit of the work.

2. Appropriateness of scale, form, material, content and design relative to the immediate neighborhood and environment; no mural shall be approved if the mural, as proposed, would create an objective risk to public health, safety, or welfare (e.g. a mural near a roadway would be rejected for the use of reflective materials, like mirrors, which could cause a distraction to drivers);

3. Appropriateness of proposed materials as regards to structural and surface integrity, considering the ability of the materials and design to protect against vandalism, withstand weathering, and maintain the intended design;

4. Ease of maintenance and longevity of the proposed materials;

5. Appropriateness of proposed method of installation and artwork and safety and structural factors involved in installation;

6. Location, considering the intended audience for the proposal, whether the public will be a captive audience or whether a person would need to take affirmative steps to view the project, consideration of whether the mural would be in an area typically accessed or viewable by minors;

7. A mural shall not be approved if it includes:
a. Copyrighted work without permission of the holder of the copyright. b. Obscene materials.
c. Defamatory content.
d. Fighting words or advocates imminent lawless action. e. Content, including but not limited to, words, symbols, signs, trademarks, or references to products or services provided on the premises, which makes

Item 10.a.

City Council
Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
May 14, 2024

it a sign, as defined in AGMC Section 16.04.070, and regulated under AGMC Chapter 16.60.

The proposed criteria are designed to give additional clarity as to requirements for application approval. At the City Council study session, AGPA provided comments regarding the criteria for artistic quality, citing concerns about how they apply to certain public projects such as the recent utility box paintings.

Village-Specific Standards
The above proposed selection criteria are intended to be used for public art citywide. The City Council directed staff to provide some Village-specific public art standards, where the concerns for maintaining the historic character of the area are more pronounced.

Based on this direction, staff has included, and the Planning Commission recommended, the following additional criteria in the Guidelines to apply to properties within the Village:
a. An identified relationship to the social, cultural and historical identity of the area; b. An identified relationship to the site’s existing architectural features; c. The nature of the site’s surrounding neighborhood and potential impact of the public art project on residents, businesses, existing works of art or design elements within the site’s vicinity.

Applicability of the Guidelines
The Guidelines currently apply to public art proposed on City property, in the public right of way, and on private property with a nonresidential land use that faces a public right-ofway or public property. The proposed updates clarify this applicability by stating that the Guidelines will apply to public art on private property with a nonresidential land use that is visible from a public right-of-way or public property.

Applications – Public vs. Private
The City Council, as well as AGPA, expressed interest in having separate application forms for public art on private property vs. public art on public property to ensure clarity to applicants based on the type of public art proposed. Upon final approval of the guidelines and public art donation program, staff will have two separate applications available to the public for private property vs. public property.

Next Steps
Introduction of the Ordinance will allow the City Council to schedule adoption at a subsequent meeting, and then become effective 30 days after adoption. Amendments to the Public Art Guidelines and Public Art Donation Program will take effect upon City Council approval.

Item 10.a.

City Council
Amendments to the Arroyo Grande Public Art Regulations, Guidelines, and Donation Program
May 14, 2024

ALTERNATIVES:

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

1. Introduce the Ordinance and adopt a Resolution approving amendments to the Public Art Guidelines and Public Art Donation Program; or

2. Modify as appropriate and introduce the modified Ordinance and Resolution approving the Public Art Guidelines and Public Art Donation Program; or

3. Do not introduce the Ordinance and do not adopt a Resolution approving amendments to the Public Art Guidelines and Public Art Donation Program, and provide direction to staff on specific revisions; or

4. Provide other direction to staff.

ADVANTAGES:

Amendments to the Arroyo Grande Municipal Code regarding public art, including but not limited to, murals, provides an opportunity to improve consistency with the Guidelines and spur additional public art in the city by improving the permitting process.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

The amendment to Section 16.16.200 of the AGMC and amendments to the Public Art Guidelines and Public Art Donation Program are not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Here, the City Council is only approving an update to the Arroyo Grande Municipal Code, Public Art Guidelines, and Public Art Donation Program. None of these amendments, on their own, authorize any placement or creation of public art. Thus, it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed Ordinance Amendment to AGMC 16.16.200

2. Proposed Resolution to Amend Public Art Guidelines and Public Art Donation Program

65501.00002\42190255.1
ATTACHMENT 1
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING SECTION 16.16.200 OF

THE ARROYO GRANDE MUNICIPAL CODE REGARDING

PUBLIC ART AND FINDING THE ORDINANCE EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
WHEREAS, in 2002 the City Council approved measures to promote art in the community, establish a uniform process for the review and selection of public art on public and private property that would be reflective of the community but limit City involvement, and identify general guidelines and selection criteria to promote creativity and freedom of expression, but also compatibility with the character design and environment of the surrounding area; and
WHEREAS, in 2004 the City Council adopted a resolution approving Public Art Guidelines and an ordinance incorporating them by reference into the Municipal Code as part of the Design Guidelines and Standards for Mixed Use Districts; and WHEREAS, in 2011 the City Council amended the Design Guidelines and Standards for Mixed Use Districts to establish standalone Public Art Guidelines and a Public Art Donation Program; and
WHEREAS, the City Council amended the Public Art Guidelines and Public Art Donation Program again in 2021; and
WHEREAS, at a study session on March 12, 2024, City Council directed staff to amend the Public Art Guidelines, Public Art Donation Program, and Arroyo Grande Municipal Code (AGMC) Section 16.16.200 to provide an updated process for reviewing public art applications; and
WHEREAS, this ordinance amends section 16.16.200 to apply to public art and authorize City Council as the approving body for public art projects; and WHEREAS, on April 16, 2024, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the ordinance amendments. Following the public hearing, the Planning Commission voted to forward the ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on May 14, 2024, the City Council conducted a duly noticed public hearing to consider the ordinance, including: (1) the public testimony and agenda reports

ORDINANCE NO.

PAGE 2
prepared in connection with the ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on May 14, 2024 introduced this Ordinance to amend Section 16.16.200 of Title 16 of the Arroyo Grande Municipal Code; and
WHEREAS, all legal prerequisites to the adoption of the ordinance have occurred.

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

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

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

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

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

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

Making the proposed updates to AGMC 16.16.200 will promote the creation of public art in the City, which serves the goals of the City’s General Plan. The General Plan speaks to the desire to conserve the City’s natural beauty, improve the overall aesthetics of the City, and to attract outside visitors and improve the experience of residents. Facilitating the process by which art may exist in public places is consistent with those important aesthetic and economic development goals of the General Plan.

2. Health, Safety, and Welfare; Illogical Land Use Pattern. Adoption of the ordinance will not adversely affect the public health, safety, and welfare as the proposed amendments are intended to harmonize existing processes as to public art approval and ensure a consistent, predictable review process for public art projects. Standards to protect public safety in the creation of public art have been put into place within the Public Art Guidelines to ensure that public art does not interfere with existing rights of way and guided is by standards intended to preserve or augment the health, safety, and welfare of the community.

ORDINANCE NO.

PAGE 3

3. Consistency with Title 16. This ordinance is consistent with the purpose and intent of AGMC Title 16 because it updates the process relating to approval of public art on non-residentially zoned property and ensures that the provisions thereof are consistent with the City’s general plan.

4. Environmental. As above in Section 2, the proposed revision to this title will have an insignificant effect on the environment by itself because specific public art projects will need to undergo individualized review. Further, the updates to the municipal code merely update the approval process and review criteria for approval of public art without authorizing any action that could impact the environment.

SECTION 4. Code Amendment. Section 16.16.200 of the Arroyo Grande Municipal Code is hereby amended to read as follows (additions shown in underline and deletions shown in strikethrough):

16.16.200 Mural permit Public Art.

A. Purpose and Intent. To facilitate and encourage property owners to provide outdoor public art, including but not limited to, murals. ensure a mural enhances the architecture or aesthetics of a building or wall and to ensure a mural does not detract from the character of the district within which it is located and to ensure a mural is not detrimental to the public health, safety or welfare. a mural permit shall be required for all murals. A mural permit is in addition to signs.

B. Authority. The community development director is authorized to approve mural permits subject to the appeal provisions of Section 16.12.150. The architectural review committee shall provide recommendations to the community development director regarding mural permit requests. A public hearing is not required.

C. Submittal and Review Procedures.

1. Public Art applications shall be processed and reviewed as authorized in the most recent version of the city’s Public Art Guidelines and Public Art Donation Program. A copy of the Public Art Guidelines and Public Art Donation Program are available with the Community Development Department and the City Clerk’s office.

Mural permit applications shall contain the following:
a. Completed planning application form and required fee and attachments (see also Section 16.12.030);
b. Five copies of a plot plan, drawn to standard engineers scale (approval necessary for use of scale smaller than 1:30, i.e., 1:40 or 1:50) and with a north arrow, showing:

ORDINANCE NO.

PAGE 4
i. Location, exterior boundaries and dimensions of the
entire property that is the subject of the application, ii. Public and/or private adjacent streets, rights-of-way, and easements,
iii. Site access, circulation and off-street parking facilities, iv. Existing and proposed buildings and structures,
v. Wall, fences, exterior lighting structures and planted areas,
c. Five copies of a mural plan showing:
i. Dimensions and area (in square feet) of the mural,
ii. Dimensions and areas of building walls on which the mural is to be located,
iii. Height of the mural above the average ground surface, iv. Means of lighting, if any,
v. Description of materials and colors,
vi. Scaled drawing of the mural showing design details; d. One colored rendering depicting the mural on the side of the building or wall, at a scale sufficient to clearly show all elements of the proposed design;
e. Color photographs of the subject wall or building and surrounding sites;
f. Other information that the community development director may reasonably require to secure compliance with this title.

2. After receipt of a completed application, the community development director shall schedule a mural permit application for review by the architectural review committee.

3. Upon recommendation by the architectural review committee and when the proposed mural satisfies all applicable provisions of this title, the community development director shall approve a mural permit.

4. If the community development director approves the mural permit, the building department shall be notified. A building permit and payment of applicable fees may be required.

5. If the community development director determines the proposed mural to be unacceptable, the director shall inform the applicant of identifiable issues and suggest alternatives to resolve such issues.

The applicant shall then be directed to return with revisions and/or work with staff to resolve issues. If issues cannot be resolved, the

ORDINANCE NO.

PAGE 5
community development director shall deny the mural permit application.

D. Required Findings. The community development director may approve a mural permit only if all of the following findings of fact can be made in an affirmative manner:

1. The proposed mural is consistent with the goals, objectives, policies and programs of the Arroyo Grande general plan, specific plan, and any applicable design guidelines or approvals;

2. The proposed mural will not be detrimental to the public health, safety and welfare;

3. The proposed mural, including the physical location or placement, size and design, is consistent with the character of the district and the neighborhood within which it is located;

4. The proposed mural, including the physical location or placement, size and design, is consistent with the character of the building or wall upon which it is placed and will complement the architecture or aesthetics of the building or wall;

5. The proposed mural does not contain any advertising material (murals containing advertising materials may be reviewed as signs SECTION 6. Publication. A summary of this ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five days prior to the City Council meeting at which the proposed ordinance is to be adopted. A certified copy of the full text of the proposed ordinance shall be posted in the office of the City Clerk. Within 15 days after adoption of the ordinance, the summary with the names of those City Council members voting for and against the ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted ordinance.

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

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

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

SECTION 9. Records. The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council’s findings

ORDINANCE NO.

PAGE 6
and determinations are based are located at 300 E. Branch Street, Arroyo Grande, CA 93420. The City Clerk is the custodian of the record of proceedings.

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

AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this ____ day of _______, 2024.

ORDINANCE NO.

PAGE 7
___________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
___________________________________

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE APPROVING AMENDMENTS TO

THE PUBLIC ART GUIDELINES AND PUBLIC ART

DONATION PROGRAM AND FINDING THE ACTION NOT

SUBJECT TO CEQA
WHEREAS, in 2002 the City Council approved measures to promote art in the community, establish a uniform process for the review and selection of public art on public and private property that would be reflective of the community but limit City Government involvement, and identify general guidelines and selection criteria to promote creativity and freedom of expression, but also compatibility with the character design and environment of the surrounding area; and
WHEREAS, in 2004 the City Council adopted a Resolution approving Public Art Guidelines and an Ordinance incorporating them by reference into the Municipal Code as part of the Design Guidelines and Standards for Mixed Use Districts; and WHEREAS, in 2011 the City Council amended the Design Guidelines and Standards for Mixed Use Districts to establish standalone Public Art Guidelines and a Public Art Donation Program; and
WHEREAS, the City Council amended the Public Art Guidelines and Public Art Donation Program again in 2021; and
WHEREAS, at a study session on March 12, 2024, City Council directed staff to amend the Public Art Guidelines and Public Art Donation Program to resolve inconsistencies and improve the review process; and
WHEREAS, the City Council now desires to amend the Public Art Guidelines and Public Art Donation Program as part of a proposed amendment to Arroyo Grande Municipal Code Section 16.16.200;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that:

SECTION 1. That all recitals above are true, correct, and incorporated herein.

SECTION 2. That the City Council of the City of Arroyo Grande hereby adopts the Public Art Guidelines and Public Art Donation Program as set forth in Exhibit “A” attached hereto and incorporated herein by this reference as though set forth in full.

RESOLUTION NO.

PAGE 2
SECTION 3. This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

SECTION 4. This Resolution shall take effect upon approval by the City Council.

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 14th day of May, 2024.

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

RESOLUTION NO.

PAGE 4
Exhibit A
Public Art Guidelines and Public Art Donation Program

1 Public Art Guidelines
&
Public Art Donation
Program
ADOPTED _________________
RESOLUTION NO. __________

CITY OF ARROYO
GRANDE

PUBLIC ART
Mural photo courtesy of Vivian Krug

EXHIBIT A

2

3 PUBLIC ART GUIDELINES
Purpose
The purpose of the Guidelines is to establish a framework to facilitate and encourage property owners to provide outdoor public art. For the purposes of these Guidelines, "Public Art" shall mean art located either:
(1) On private property with a non-residential land use that is visible from a public right-of-way or public property; or
(2) In the adjacent public right of way; or
(3) On property owned or managed by the City of Arroyo Grande (City), that is openly displayed to the public without charge.

Artwork may include free-standing pieces (e.g., a sculpture or water fountain) or may be integrated into its surroundings as an architectural element (e.g., relief sculpture embedded in pavement or a wall, a mosaic or mural on a wall.) These Guidelines establish the City's goals regarding art that is publicly displayed and accessible to the public. The City recognizes that art and artistic expression is a protected activity and these Guidelines are not intended to unduly restrict creative expression or limit the types of public art possible. Rather, they are intended to facilitate and encourage the best possible combination of sites and artwork and help to guide what is essentially a form of communication between the artist and the community.
“The City recognizes that art and artistic expression is a protected activity and these Guidelines are not intended to unduly restrict creative expression or limit the types of public art possible.”

4 Applicability
These Guidelines are applicable to public art projects proposed:
(1) on private property with a non-residential land use that is visible from a public right-of-way or public property; or
(2) in the adjacent public right of way; or
(3) on City property or City maintained property.

Public art proposed to be located on City property or City maintained property is also subject to the Public Art Donation Program.

Proposal and Application
Public art proposals will require:

An application submitted to the Community
Development Department. Applications will be
made available on the Arroyo Grande website, and
a completed application is required for eligibility
and approval of proposed public art.

A recommendation of approval from the
Architectural Review Committee in accordance with
the Selection Criteria.

A decision by the City Council in accordance with
the Selection Criteria.

5 Figure 1: Butterfly and the Hand (courtesy Nan Bowman)

6 Application Review and Approval
Following an initial determination on the completeness of the application by the Community Development Department, the Architectural Review Committee (“ARC”) reviews all public art applications and makes a recommendation to the City Council. The Selection Criteria, which both ARC and the City Council will use to review applications, is discussed below.

ARC will convene to make a recommendation to the City Council regarding the public art application based on the Selection Criteria. ARC may:
(1)Recommend approval of the project to the City Council: or (2) Request the applicant make further clarification, modify, or redesign the proposal before advancing the proposal to the City Council in order to meet the Selection Criteria; or
(3) Request the applicant present a new concept or design for the project; or
(4) Recommend rejection of the application due to inconsistencies with the Selection Criteria.

At the conclusion of the ARC’s review of the proposal, the applicant may:
(1) Modify the proposal and return to ARC at a later date; or (2) Advance the proposal to the City Council for review

7 The City Council will schedule a public hearing to review the application within 90 days of receiving ARC’s recommendation. At the hearing, the City Council shall review any material submitted by the applicant, city staff, the administrative record of the decision on the application, and evidence presented at the hearing.

The applicant shall be given a reasonable time to present their case. The City Council shall use the Selection Criteria as the basis for its decision. The City Council may:
(1) Request the applicant to clarify its proposal or redesign and resubmit its proposal to ARC or City Council. If the City Council requests that the applicant resubmit the proposal to ARC, the resubmitted proposal shall be reviewed as if a new application; or
(2) Approve the proposal, providing a written explanation of the basis for approval through the Selection Criteria; or
(3) Deny the proposal, providing a written explanation of the basis for denial through the Selection Criteria
All decisions of the City Council are final and conclusive.

8 Figure 2: Diversity Sculpture (courtesy Vivian Krug)

9 Selection Criteria
(1) Evaluation of artistic excellence, examining:
a. The artist’s qualifications, including: education, training, experience, body of work, recognition of the artist, and the consistency of the artist’s qualifications with the stated goals of the project;. b. The artist’s record of previous collaboration with other agencies, organizations, artists, fabricators, or installers to achieve a successful result in implementing the proposed project;
c. The artist’s experience working in the public realm; d. To the extent applicable, the artist’s previous proven successful experience in creating, producing or otherwise implementing projects similar to the one proposed;
e. The original nature of the proposed concept;
f. The inherent artistic quality and aesthetic merit of the work (2) Appropriateness of scale, form, material, content and design relative to the immediate neighborhood and environment; no mural shall be approved if the mural, as proposed, would create an objective risk to public health, safety, or welfare (e.g. a mural near a roadway would be rejected for the use of reflective materials, like mirrors, which could cause a distraction to drivers). Scale is defined as the relative size of a building element in relation to other forms and the human body. Form is the shape or configuration of the artwork;
(3) Appropriateness of proposed materials in regards to structural and surface integrity. Materials should be considered in the context of ability to deter against vandalism, withstand weathering, and maintain the intended design; (4) Ease of maintenance and longevity of the proposed materials;

10 (5) Appropriateness of the proposed method of installation of the artwork with consideration given to the safety and structural factors involved in installation;
(6) Location, considering the intended audience for the proposal, whether the public will be a captive audience or whether a person would need to take affirmative steps to view the project. Consideration shall be given to whether the mural would be in an area typically accessed or viewable by minors. (7) A mural shall not be approved if it includes:
a. Copyrighted work without permission of the holder of the copyright. b. Obscene materials.
c. Defamatory content.
d. Fighting words or advocates imminent lawless action. e. Content, including but not limited to, words, symbols, signs, trademarks, or references to products or services provided on the premises. Such content meets the Arroyo Grande Municipal Code (AGMC) definition for signage, as regulated by AGMC Chapter 16.60. (8) Public Art proposed in the D-2.4 Historic Character Overlay District is also subject to the following criteria:
a. An identified relationship to the social, cultural and historical identity of the area;
b. An identified relationship to the site's existing architectural features; c. The nature of the site's surrounding neighborhood and potential impact of the public art project on residents, businesses, and existing works of art or design elements within the site's vicinity.

Location

11 Public art is allowed in all zoning districts and is strongly encouraged in the Village Core Downtown, Village Mixed Use, Gateway Mixed Use, Fair Oaks Mixed Use and Public/Quasi-Public Districts. Promotion of public art visible from intersections within these districts as well as proximate to public gathering areas, plazas and public parking areas is highly recommended.

Figure 3: Title (courtesy Vivian Krug)

PUBLIC ART DONATION PROGRAM
Figure 3: Japanese Lantern

12 Purpose
Public art can provide aesthetic, cultural and economic benefits to the community.

The City of Arroyo Grande Public Art Donation Program is a means by which an artist, or an individual or group commissioning an artist, may donate, gift or bequeath public art to the City of Arroyo Grande for location in a City-owned or maintained public spaces. A Resolution of the City Council accepting public art must include provisions for the funding and ongoing maintenance of the donated public art. In authorizing public art on City-owned or maintained public spaces, the City is providing a forum for artistic expression aligned with the City’s history, culture, and built and natural environment. As a nonpublic forum, the City will only accept art which is consistent with the City’s values of cultural and social inclusiveness, environmental sustainability, and accessibility.

Process
The following steps will result in the review and decision regarding a proposal:
(1) The proposal shall be submitted to the Community Development Department for review, and to determine the following:
a. General Plan consistency
b. Risk and safety considerations
c. Maintenance requirements
d. Durability
(2) The proposal will be reviewed by the Recreation Services Department Director if placement is proposed on a park property.
(3) Recommendations will be considered by the City Council at a public hearing concurrently with the consideration of the public art piece(s). The City Council will have final approval of the donation and may reject a donation for any reason.

13 Proposal
Proposals of public art donations should include:
(1) A completed application submitted to the Community Development Department. Applications will be made available on the Arroyo Grande website;
(2) The donor’s name;
(3) The materials and dimensions of the art piece(s);
(4) A statement from the donor that the art is free of encumbrances. (5) Estimated value of donated work;
(6) Recommended manner of installation;
(7) Estimated costs to provide ongoing maintenance for the art; and (8) A statement from the artist that the art is free of encumbrances and waiving rights under the California Arts Preservation Act, section 987 of the California Civil Code ("CAPA"), and the Visual Artist Rights Act, section 106(a) of the United States Code ("VARA").

Display of Public Art
(1) The Resolution accepting the donation shall establish the terms of the proposed installation.
(2) Artwork shall be displayed to include the artwork title, artist's name, patron's name, if applicable, and date of completion. The materials used and a short explanation of the work could be included as an option.

Plaques will not be used for advertising purposes.
(3) Prior to installation of the project, the Community Development Department shall receive from the artist or donor a set of plans, specifications, and a copy of a maintenance record, which identifies maintenance, installation, and removal instructions. The transportation,

14 installation, and associated costs (such as engineering, a base for the artwork or other installation elements) related to artwork are the responsibility of the donor. In some instances, the artist or donor may be required to obtain a building permit to ensure the safety and stability of the piece(s). The permit may be issued at no cost to the artist or donor.
(4) Once the art piece is installed (by the donor under the supervision of City staff with the artist's installation direction and donor installation funding), it will require inspection and sign off by a City Building Inspector.
(5) Following inspection, a publicized dedication ceremony may be held to present the art piece to the community.

Item 11.a.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director
Shannon Sweeney, City Engineer
Shane Taylor, Utilities Manager
SUBJECT: Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
DATE: May 14, 2024
RECOMMENDATION:

Provide direction to staff regarding implementation of City Council input regarding City water supply and Central Coast Blue Member Agency Status. As a follow up to the April 9, 2024 City Council discussion, staff recommends that the City withdraw from the Central Coast Blue Regional Recycled Water Authority Joint Powers Agreement, proceed with Water Master Plan and Water Utility Plan updates once these items are approved in the FY 2024-25 budget, and defer a State Water ballot measure until at least 2026.

The requested direction from the City Council is not a project subject to the California Environmental Quality Act (“CEQA”) because any provided direction has no potential in itself to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

In FY 2024-25 $100,000 is recommended to be allocated for the preparation of the Water Master Plan, in which an updated water supply analysis will be included and $50,000 is recommended to be allocated for the preparation of a Utility Rate Study update.

Actual progress on these two tasks is contingent on City Council approving funding for the Water Master Plan and Utility Rate Study updates in the FY 2024-25 Budget.

BACKGROUND:

Since 2021, the City of Arroyo Grande has been committed to augmenting the regional water supply, most recently by participating in a Joint Powers Authority (JPA) with the

Item 11.a.

City Council
Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
May 14, 2024

Cities of Grover Beach and Pismo Beach to recycle wastewater through the Central Coast Blue Project (CCB).

On January 25, 2022, the City Council authorized entering into a Cost Sharing Agreement (CSA) with the other JPA participants and applying for financial assistance from the State’s Clean Water State Revolving Fund. The CSA obligates the City to pay for 25% of the total costs of CCB. The City of Pismo Beach and the City of Grover Beach will pay 39% and 36% of the costs, respectively. Total costs for CCB at that time were estimated to be $56,681,853.

On April 9, 2024, the City Council received an update on the City’s water supply and the current status of CCB. At that meeting, the City Council gave direction to investigate several actions, including initiating the process to withdraw from the CCB CSA while intending to maintain the City’s partnership in the JPA, undertake a new water supply alternative study, investigate updating the City’s utility rate study, and consider proceeding with a ballot initiative to allow the future purchase of water from the State Water Project outside of local water emergencies declared by the City Council.

The City of Grover Beach considered a similar item on April 22, 2024. At that time, the Grover Beach City Council directed staff to initiate withdrawal from CCB and associated JPA, consider a variety of approaches, including recycled water, to secure additional supply for water resiliency that incorporates public engagement, and modify the City’s rate structure to eliminate funding for CCB while still maintaining funding for water resiliency efforts.

On April 18, 2024, the City received a letter from the County of San Luis Obispo, included as Attachment 1. This letter supports continued regional partnerships, indicates that State policy precludes jurisdictions from pursuing desalination until they fully exhaust opportunities to use recycled wastewater as water supply, and cautions that State Water should not be considered an additional primary water supply source for the Five Cities area due to changing hydrologic patterns and declining State Water allocations.

ANALYSIS OF ISSUES:

As stated previously, on April 9, 2024, the City Council provided direction to investigate the following items:
 Initiate the process to withdraw from the CCB CSA while maintaining the City’s partnership in the JPA;
 Undertake a new water supply alternative study;
 Investigate updating the City’s utility rate study; and  Consider proceeding with a ballot initiative to allow the future purchase of water from the State Water Project outside of local water emergencies declared by the City Council.

Item 11.a.

City Council
Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
May 14, 2024

In response to City Council direction, staff have been working toward implementing these matters, as reported below.

Letter to Initiate Departure from the CSA; Follow-Up Re: CCB JPA Membership As directed, staff has prepared a letter to initiate departure from the CCB CSA (Attachment 2) pursuant to Article V, Section 9 of the CSA (Attachment 3). Per the terms of the CSA, the City may opt out of the CSA prior to the award of the first Phase 1 construction contract by providing written notice to each party to the CSA personally, by registered or certified mail, return receipt requested, or by overnight delivery. Upon opting out of the CSA, the City will still be responsible for its pro rata share – 25% - of any PreConstruction Costs incurred up to the opt-out date.

In addition to opting out of the CSA, staff is seeking City Council input and possible direction on whether to withdraw from the CCB JPA Agreement as well (Attachment 4).

The CSA and the CCB JPA agreements are closely intertwined. The parties to the CSA executed that agreement for the purpose of allotting the costs of Phase 1 of the Central Coast Blue Project. Pursuant to Article III, Section 3 of the CSA, the CSA also contemplated the creation of the CCB JPA to own and operate the project, finance the construction costs for Phase 1, and acquire and own the future facility site for the project.

Similarly, the JPA Agreement states that the parties created the CCB JPA to “oversee and manage the planning and implementation, including but not limited to construction, operation and administration of, the CCB Project.” The CCB JPA also uses the CSA as the basis for several key JPA functions, including budgeting and the allocation of Phase 1 Pre-Construction and Construction Costs. Member agencies also have obligations to contribute to JPA costs beyond the scope of the CSA, pursuant to section 6.3.2 of the JPA Agreement. Accordingly, given the purpose of the JPA, and the City Council’s direction to cease its current financial participation in the CSA for the CCB project at this time, staff recommends that the City Council withdraw from the JPA Agreement and direct staff to effectuate such withdrawal pursuant to the terms of the JPA Agreement.

If the City Council wishes to withdraw from the JPA Agreement, the City must provide the JPA with 180 days’ written notice of its intent to withdraw under Article 8. Upon withdrawal, the City’s representatives on the Board of Directors would also be withdrawn, and, unless otherwise agreed by the City and JPA Board, the City would relinquish all rights as a member agency. The City would still be responsible to contribute its share of any obligation incurred by the JPA during the time the City was a member agency, including amounts for liabilities and claims accrued during the time the City was a member agency, and budgeted expenses for the fiscal year in which the notice of intent to withdraw is given, unless the JPA Board allows the early exit from the JPA. Per Article 6 of the JPA Agreement, the fiscal year commences on July 1 of each year, so if the City Council decides to withdraw from the JPA Agreement, notice of its intent to do so should be provided by June 30, 2024, at the latest, to avoid being obligated to pay the City’s share of JPA expenses budgeted for the fiscal year beginning July 1, 2024.

Item 11.a.

City Council
Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
May 14, 2024

The JPA’s obligation to indemnify the City pursuant to Section 9.3 of the JPA Agreement will survive the City’s withdrawal. Upon termination of the JPA Agreement, the City would be treated like all other member agencies for the purposes of disbursement of JPA assets unless otherwise agreed in writing.

Water Supply Analysis Update
Recent staff evaluation of current and future water supply and demand indicate that with changes to the rules for storing water in Lopez Lake made in October 2022 and conservation efforts over the past decade, the City’s water supply portfolio is adequate to meet current and build-out demands through a minimum five-year drought scenario. This information will be peer-reviewed by a third-party consultant as part of a water supply analysis in the City’s Water Master Plan, which was including in the 5-Year CIP Budget in FY 2024-25. The City’s existing Water Master Plan was prepared in 2012 and is due to be updated. Analyzing current and future water supply is a common task performed as part of Water Master Planning. Staff will initiate the process for securing a consultant to perform the Water Master Plan update through a Request for Proposal process as soon as funding is secured for this task.

Rate Study Update
The Current Water and Wastewater Rate Study covers FY 2021-22 through FY 2025-26, with the third increase on January 1, 2024. The current rate structure includes two additional increases on January 1, 2025, and January 1, 2026. Based on Council direction to withdraw from the CCB CSA staff recommend evaluating the impacts this change has on the Water and Wastewater Rate structure once the Water Master Plan is updated. The Water Master Plan update will identify capital improvement projects needed for the City to meet its buildout water supply, treatment, storage, and distribution needs. Information in the Water Master Plan is critical to develop an accurate water rate structure. By performing the Water and Wastewater Rate Study update after the Water Master Plan, water rates will properly reflect the City’s current and future needs for supply, operation, and infrastructure.

Ballot Measure to Secure Water from the State Water Project Outside of Water Emergencies
Due to the 2024 Presidential Election in November, the City is positioned to be able to move forward with placing a measure on the ballot to allow the City to purchase water from the State Water Project should the opportunity present itself. In 2016, Arroyo Grande voters passed Measure E-16 to allow the City to purchase water from the State Water Project during local water emergencies declared by the City Council. A measure on the 2024 General Municipal Election, if directed by the City Council, would request the ability for the City to purchase water from the State Water Project outside of local water emergencies. This could enable the City to purchase water from the State Water Project should supply become available in the future, including from current State Water Project

Item 11.a.

City Council
Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
May 14, 2024

recipients such as the Oceano Community Services District or the County of San Luis Obispo.

While there technically remains enough time to place this matter on the 2024 General Election ballot, six months may not provide adequate time necessary to properly educate the voters on the scope of that potential measure, or the needs for additional water supplies that the City Council has discussed. Additionally, due to the ample precipitation received in the previous two water years, adequate water supplies exist for the City to continue working toward regional water supply solutions outside of CCB, developing an appropriate public education campaign, and could place the measure on the 2026 ballot.

For these reasons, staff recommends the City Council defer this effort to be undertaken for the 2026 General Election.

ALTERNATIVES:

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

1. Direct staff to withdraw from the JPA, proceed with Water Master Plan and Water Utility Plan updates once these items are approved in the FY 2024-25 budget, and defer a State Water ballot measure until at least 2026; or

2. Provide other direction to staff.

ADVANTAGES:

Performing the Water Master Plan and Utility Rate Study updates as directed by City Council allows City to perform the analysis necessary to ensure that water supplies will meet future needs and that a rate structure will be in place to meet those needs.

CCB costs have grown from an estimated $56 million in 2022 to a minimum of $134 million at most recent estimate. The CSA obligates the City of Arroyo Grande for 25% of CCB costs. Departing the CSA relieves the City from an obligation to pay increasingly higher costs associated with construction of CCB.

Staff does not believe that it is necessary to pursue a ballot measure to secure the ability to purchase State Water within the six months before the November elections. Holding off on this task does not preclude the City from pursuing such a measure at a later date.

Current water conditions indicate that the City has sufficient water supply to meet demand for at least five years, providing adequate time to pursue the ballot initiative if needed.

DISADVANTAGES:

State policy appears to preclude jurisdictions from pursuing desalination until they fully exhaust opportunities to use recycled wastewater as water supply. By initiating the process to depart the CSA, City is divesting itself from the only current opportunity for using recycled wastewater as water supply. Not pursuing a project that recycles wastewater eliminates the City’s option to include desalinated water as part of its future water supply portfolio.

Item 11.a.

City Council
Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
May 14, 2024

ENVIRONMENTAL REVIEW:

The requested direction from the City Council is not a project subject to the California Environmental Quality Act (“CEQA”) because any provided direction has no potential in itself 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. April 18, 2024, Letter from the County of San Luis Obispo

2. Draft Cost Sharing Agreement Departure Letters

3. Cost Sharing Agreement

4. Joint Powers Agreement

CITY OF

ARROYO GRANDE

CALIFORNIA
CITY OF ARROYO GRANDE  300 E. Branch Street  Arroyo Grande, California 93420 Phone: (805) 473-5400  Fax: (805) 473-0386  E-mail: [email protected]  Website: www.arroyogrande.org ATTACHMENT 2
May __, 2024

VIA CERTIFIED MAIL
Jorge Garcia
City Manager for City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449
Re: Notice of Opt-Out of Cost Sharing Agreement For Parties’ Participation In The Central Coast Blue Project
Dear Mr. Garcia:

This letter provides notice that the City of Arroyo Grande (“City”), pursuant to the approval of its City Council at its May 14, 2024 regular meeting, hereby opts-out of the Cost Sharing Agreement For Parties’ Participation In The Central Coast Blue Project (“Agreement”), between the Cities of Arroyo Grande, Pismo Beach, and Grover Beach, dated March 14, 2022, as of May 14, 2024 pursuant to Section 9, Article V of the Agreement.

Please contact Matthew Downing, City Manager at (805) 473-5418 or [email protected] if you have any questions.

Sincerely,
Matthew Downing
City Manager
cc: Richards, Watson & Gershon
Attn: Dave Fleishman, Esq.
847 Monterey Street, Suite 206
San Luis Obispo, CA 93401

CITY OF

ARROYO GRANDE

CALIFORNIA
CITY OF ARROYO GRANDE  300 E. Branch Street  Arroyo Grande, California 93420 Phone: (805) 473-5400  Fax: (805) 473-0386  E-mail: [email protected]  Website: www.arroyogrande.org ATTACHMENT 2
May __, 2024

VIA CERTIFIED MAIL
Matthew Bronson
City Manager for City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
Re: Notice of Opt-Out of Cost Sharing Agreement For Parties’ Participation In The Central Coast Blue Project
Dear Mr. Bronson:

This letter provides notice that the City of Arroyo Grande (“City”), pursuant to the approval of its City Council at its May 14, 2024 regular meeting, hereby opts-out of the Cost Sharing Agreement For Parties’ Participation In The Central Coast Blue Project (“Agreement”), between the Cities of Arroyo Grande, Pismo Beach, and Grover Beach, dated March 14, 2022, as of May 14, 2024 pursuant to Section 9, Article V of the Agreement.

Please contact Matthew Downing, City Manager at (805) 473-5418 or [email protected] if you have any questions.

Sincerely,
Matthew Downing
City Manager
cc: David Hale
City Attorney
1233 W. Shaw Ave. Ste. 106
Fresno, CA 93711

ATTACHMENT 3

ATTACHMENT 4

Item 12.a.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director
Shannon Sweeney, City Engineer
SUBJECT: Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
DATE: May 14, 2024
RECOMMENDATION:

Review and provide direction on financing options related to the top three priorities from the Community Priorities Survey Results and consider directing staff to prepare a resolution and ordinance for City Council consideration at the May 28, 2024 meeting, to place a 1% Transaction and Use (“sales tax”) measure on the November 5, 2024 ballot.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Historically, the City has been able to allocate on average $6.1 million to the Police Department and approximately $1.25 million annually towards the Pavement Management Program (PMP) that addresses streets and sidewalks. The recently Amended and Restated Joint Exercise of Powers Agreement for the Five Cities Fire Authority (FCFA) the City resulted in an anticipated average payment over the next five years of $4.2 million annually. A new 1% local sales tax measure increase would generate approximately $6 million annually.

BACKGROUND:

At the March 2, 2023, Special City Council Meeting, the City Council established four (4) major City goals for staff to prioritize for the FY 2023-25 Biennial Budget. The goals were established considering the results of a community survey and input from the public and staff. The four major goals are:

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

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.

On June 13, 2023, the City Council authorized the publishing of a Request for Proposals (RFP) for Voter Opinion Polling and Public Education and Outreach Services. On August 22, 2023, the City Council approved a professional services agreement with Clifford Moss and True North Research for these services. Voter Opinion Polling was conducted in November and December 2023. On January 9, 2024, the City Council reviewed the polling results summary report from True North Research and directed staff to continue working with the consultant on a potential future revenue measure.

As part of the City’s efforts to listen to the community regarding their priorities for Arroyo Grande, a Community Priorities Survey was mailed to all Arroyo Grande households on February 22, 2024. The mailer included a tear-off response option as well as an online option for completing the survey. To encourage residents’ participation, video and still ads were developed and placed on various online platforms driving viewers to the online version of the survey.

On April 23, 2024, the City Council reviewed the Community Priorities Survey Results.

As of April 23, 2024 the City received 1,444 responses to the Community Survey – 477 written and 967 online. Over 400 personal comments were also provided with the responses.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

On average, the top three priorities, as ranked by Arroyo Grande residents responding to the
survey, were as follows:

1. Maintain fire protection services;

2. Maintain 911 response and emergency police services; and

3. Repair, pave and Maintain Arroyo Grande’s 73 miles of roads; fix potholes and damaged sidewalks.

The top three priorities were calculated by taking the sum of each selection and dividing it by the number of responses received for that category. Categories with the lowest averages reflect the more important issues to the community members who responded.

The top three “1st place” priorities, by a significant margin, were as follows:

1. Repair, pave, and maintain Arroyo Grande’s 73 miles of roads; fix potholes and damaged sidewalks;

2. Maintain 911 response and emergency police services; and

3. Maintain fire protection and paramedic services.

The top priorities were calculated by adding up how many rankings of “1” each category received.

Maintain Fire Protection Services
The FCFA was formed on July 9, 2010, through a Joint Exercise of Powers Agreement (JPA) entered into by the City of Arroyo Grande (City), the City of Grover Beach, and the Oceano Community Services District (OCSD) to provide integrated and efficient fire and emergency medical services to the three communities. On June 13, 2023, the City Council approved an Amended and Restated Joint Exercise of Powers Agreement for the FCFA with a formal execution date of June 22, 2023, by the FCFA Board, and an agreement between the FCFA and the OCSD regarding short-term fire and emergency response services for FY 2023-24 while OCSD completes the San Luis Obispo Local Agency Formation Commission (LAFCO) process following their departure from the FCFA.

Over the last ten years, the City has allocated the following funds towards the FCFA to maintain lifesaving fire protection service:

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Chart 1: Fire Service Funding
Table 1: Fire Service Funding
As indicated in Chart 1 and Table 1 above, FY 2019-20 through FY 2022-23 does not show a change in funding. The large increase in FY 2023-24 was due to the change in JPA member structure and continued investment needed in FCFA.

Fiscal Year General Fund
Measure O
2006 Sales Tax Total
2014-15 1,457,448 125,000 1,582,448
2015-16 1,708,434 137,700 1,846,134
2016-17 1,840,717 140,500 1,981,217
2017-18 1,893,047 169,300 2,062,347
2018-19 2,523,661 - 2,523,661
2019-20 2,052,061 528,894 2,580,955
2020-21 2,052,061 528,894 2,580,955
2021-22 2,052,061 528,894 2,580,955
2022-23 2,052,061 528,894 2,580,955
2023-24 2,847,000 949,000 3,796,000

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Over the last ten years, FCFA calls for service continue to increase as shown in Table 2 below:

Table 2: FCFA Calls for Service
This data is not available specifically for Arroyo Grande calls for service, although each service area has seen a steady increase.

Maintain 911 Response and Emergency Police Services
The purpose of the Arroyo Grande Police Department is to maintain public peace, safeguard lives and property, and provide for a quality of life whereby those persons within the City of Arroyo Grande have a sense of security and freedom in their daily activities.

To achieve these ends, the Arroyo Grande Police Department maintains the capability to provide a superior level of law enforcement and related services that are appropriate and timely. Specifically, the Arroyo Grande Police Department maintains a viable proactive organization that recognizes and effectively responds to current and future community needs and maximizes the available resources, personnel, and technology.

Over the last ten years, the City has allocated the following funds to maintain 911 response and emergency police services:

Calendar
Year
Calls for
Service
Percentage
Change
2013 3,366 1.63%
2014 3,575 6.21%
2015 3,762 5.23%
2016 3,714 -1.28%
2017 3,943 6.17%
2018 3,694 -6.31%
2019 3,413 -7.61%
2020 4,000 17.20%
2021 4,154 3.85%
2022 4,492 8.14%
2023 4,261 -5.14%

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Chart 2: Police Department Funding
Table 3: Police Department Funding
As indicated in Chart 2 and Table 3 above, the funding for the Police Department has been at a steady rate of growth for the last four years.

Fiscal Year General Fund
Measure O
2006 Sales Tax Total
2014-15 5,498,126 193,000 5,691,126
2015-16 6,140,688 261,600 6,402,288
2016-17 5,950,291 71,300 6,021,591
2017-18 6,409,150 343,896 6,753,046
2018-19 6,303,739 216,804 6,520,543
2019-20 5,831,906 222,600 6,054,506
2020-21 5,089,736 292,008 5,381,744
2021-22 5,598,698 205,604 5,804,302
2022-23 5,797,299 263,100 6,060,399
2023-24 6,903,199 268,300 7,171,499

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Over the last eight years, the Police Department calls for service continue to increase as shown in Table 4 below:

Table 4: Police Department Calls for Service
As shown below, Fire and Police Services make up 41% of the FY 2023-24 budgeted Consolidated General Fund Expenditures, Police with 26% and Fire with 15%:

Pie Chart 1: FY 2023-24 Consolidated General Fund Expenditures Repair, Pave, and Maintain Arroyo Grande’s 73 Miles of Roads; Fix Potholes and Damaged Sidewalks
On February 14, 2017, the City Council adopted the 2016 Update to the Pavement Management Plan (Plan) and endorsed the “Critical Point Management” methodology for the City’s Pavement Management Program (PMP). The Critical Point Strategy approach selects the road segments for repair or resurfacing that are at a “critical point” of Calendar
Year
Calls for
Service
Incident
Reports Citations
Parking
Citations Total
Percentage
Change
2015 15,986 1,858 901 134 18,879
2016 17,137 1,844 776 214 19,971 7.20%
2017 17,295 2,024 654 298 20,271 0.92%
2018 17,507 1,903 655 771 20,836 1.23%
2019 19,292 1,850 583 152 21,877 10.20%
2020 17,997 1,660 1,022 194 20,873 -6.71%
2021 18,582 2,012 1,645 404 22,643 3.25%
2022 17,960 1,834 431 171 20,396 -3.35%
2023 17,957 1,417 2,681 36 22,091 -0.02%

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

deterioration. The critical point is a point located on the pavement deterioration graph which indicates the Pavement Condition Index (PCI) value is about to drop to a level which would trigger a more expensive maintenance or rehabilitation approach. The Critical Point Strategy is a long-range methodology that maintains and improves roadways before they slip into a PCI range that reflects costlier repairs. The PMP will annually evaluate and provide recommendations for repair and resurfacing based on this critical point approach, using the Plan as a starting point. This method, along with field evaluations is currently being used each fiscal year when considering the Street Repairs Projects.

Over the last ten years, the City has allocated the following funds towards the PMP:

Chart 3: Pavement Management Program Funding

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Table 5: PMP Funding
Urban SHA refers to the City’s annual allocation through San Luis Obispo County of Government’s (SLOCOG). General Fund refers to the general revenue, including Reserve Fund Balance. Streets Fund refers to the SB 1 funds. Construction and Transportation Fund refers to Local Transportation Fund (LTF) provided by the SLOCOG.

Local Sales Tax refers to Measure O 2006 revenue.

Sales Tax
California has a State-mandated minimum sales tax of 7.25 percent. The Local Government Guide to California Sales, Use and Transaction Tax from the City’s sales tax consultant provides a detailed overview of the allocation of sales tax and how use tax is imposed in California. Counties, municipalities, and districts are allowed to increase the sales tax in their jurisdictions up to a total of 2 percent.

Not all sales tax revenue goes to the City. California’s base sales tax is 6%. The additional sales tax of 1.25% is called the Bradley-Burns tax, of which 1% is allocated to counties or incorporated cities to use at their discretion and the remainder 0.25% is distributed to county local transportation funds (LTFs) to support transportation programs. The following graphic provides a general breakdown of the standard 7.25% sales tax charged throughout the State and its general distribution:

Fiscal
Year Urban SHA
Expense
Recovery
General
Fund Streets Fund
Construction &
Transportation
Fund
Measure O 2006
Sales Tax Total
2014-15 68,829 60 - - 200,507 476,532 745,928
2015-16 68,828 - 17,159 - 203,267 785,164 1,074,418
2016-17 69,172 - 12,620 - 100,000 649,341 831,134
2017-18 70,000 - 14,665 - 100,000 672,920 857,584
2018-19 70,000 - 4,313 328,474 - 298,305 701,092
2019-20 70,000 - - 309,610 - 625,089 1,004,699
2020-21 - - - 146,328 - - 146,328
2021-22 131,000 - 982,315 540,280 - 361,165 2,014,760
2022-23 - - 192,263 409,192 - 192,263 793,718
2023-24 413,400 - 610,872 432,848 - 5,368,033 6,825,153

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

In most areas of California, local jurisdictions have added local taxes that increase the tax owed by a seller. Sellers are required to report and pay the applicable local taxes for their taxable sales and purchases. Arroyo Grande currently has a ½ cent (0.5%) sales tax measure, Measure O-06, that was approved by the voters in 2006.This brings the total tax charged to customers purchasing items in the City of Arroyo Grande to 7.75%.

Measure O-06 passed by 50.11%, which met the majority voter approval required for establishing a local transactions and use tax. The operative date of the transactions and use tax commenced on April 1, 2007. The City publishes and distributes an annual report to each household showing the revenues and expenditures from the Measure O-06 sales tax proceeds. Additionally, the City Council is required to conduct a public hearing every five years to determine whether it is necessary for the sales tax to remain in effect.

Table 6 displays the current Sales & Use Tax Rates for the Region:

Table 6: Regional Sales & Use Tax Rates
City Sales Tax Rate
Atascadero 8.75%
Grover Beach 8.75%
Morro Bay 8.75%
Paso Robles 8.75%
San Luis Obispo 8.75%
Santa Maria 8.75%
Pismo Beach 7.75%
Arroyo Grande 7.75%

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

ANALYSIS OF ISSUES:

Maintain Fire Protection Services
Today’s fire service must have the personnel, training, and tools to respond to a variety of situations including medical emergencies, traffic collisions, technical rescues, structure and vegetation fires, and hazardous materials.

The projected 5-Year funding for Fire Service through FCFA for FY 2024-25 through FY 2028-29 is shown below:

Chart 4: Future Fire Service Funding
Table 7: Future Fire Service Funding
Measure O 2006 Sales Tax pays for only 25% of the total Fire Service costs the City provides.

Maintain 911 Response and Emergency Police Services
When an Arroyo Grande resident dials 9-1-1, they have likely found themselves in a situation that they can no longer manage on their own. Today’s Police Department must -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
2024-25 2025-26 2026-27 2027-28 2028-29
Fire Service Funding
General Fund Measure O 2006 Sales Tax Fund Total
Fiscal Year General Fund
Measure O
2006 Sales Tax Total
2024-25 2,983,500 994,500 3,978,000
2025-26 3,073,005 1,024,335 4,097,340
2026-27 3,165,195 1,055,065 4,220,260
2027-28 3,260,151 1,086,717 4,346,868
2028-29 3,357,956 1,119,319 4,477,275

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

have the personnel, training and tools to respond to a variety of situations including traffic collisions, calls related to crime such as homicide, larceny, rape, assault, arson, robbery, burglary, and vehicle theft, and calls related to homelessness.

The projected 5-Year funding for the Police Department for FY 2024-25 through FY 2028- 29 is shown below:

Chart 5: Future Police Department Funding
Table 8: Future Police Department Funding
Measure O 2006 Sales Tax pays for approximately 4% to provide support to the Police Department including the cost of one Senior Police Officer position, the Narcotics Task Force, and the Animal Services Building Debt Services payment.

Repair, Pave, and Maintain Arroyo Grande’s 73 miles of Roads; Fix Potholes and Damaged Sidewalks
The City currently maintains approximately 73 centerline miles of roads representing 13,501,540 square feet of pavement with a replacement value of approximately $408,088,527 as calculated by the City’s pavement assessment software. Despite past Fiscal Year General Fund
Measure O
2006 Sales Tax Total
2024-25 7,398,347 284,900 7,683,247
2025-26 7,620,297 291,900 7,912,197
2026-27 7,848,906 299,200 8,148,106
2027-28 8,084,374 306,700 8,391,074
2028-29 8,326,905 314,500 8,641,405

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

efforts, the condition of the City’s streets has declined. On a pavement condition scale of 0 to 100, streets now rank an average of 56, down from an average of 69 in 2016. The chart below shows the City’s pavement assessment, broken down into 10-point PCI ranges:

Chart 6: Total System by Functional Class by 10-pt PCI Range The City’s pavement consultant generated five (5) scenario projections of future pavement conditions in the City and the costs to obtain and maintain those conditions over the course of ten years, which are represented graphically below in Chart 7.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Chart 7: 10-Year Projections
A summary of each of the scenario projections are as follows:
 Scenario 1: Unconstrained Budget/Funds Needed to obtain Optimum PCI of 85 ($91M for Year 1, $4.8M/Yr Avg. for Years 2-10.)
 Scenario 2: Amount of funding to increase PCI by 5 (Avg. $8.9M/Yr.)  Scenario 3: Amount of funding to maintain PCI of 56 (Avg. $7.2M/Yr.)  Scenario 4: Impact of the current funding amount ($1.25M/Yr.), showing that the current PCI would decline from 56 to 36, a 20 point overall drop in 10 years.  Scenario 5: Represents the impact to the PCI if Zero dollars are spent.

Optimum PCI refers to the highest PCI level that the overall network can achieve within the given “Budget Needs” time frame. The charts that follow illustrate the consequences to the City’s overall weighted PCI and Deferred Maintenance Amount (costs for street repairs that get delayed or rescheduled into the future due to budget limitations), based on the scenario projections.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

At the current funding level of $1.25 million per year, it is predicted the PCI of the entire system will continue to deteriorate from 56 to 36 (Fair condition to Poor), a 20 PCI point drop over the next 10 years. Additionally, the backlog of deferred maintenance will grow from $89.7 million to $204 million, an increase of 127%. A PCI of 36 falls within the Poor Condition category. An example of a 36 PCI is Linda Drive, between Brisco Road and Oceanview School. Streets that have fallen into the Poor Condition Category require more expensive repair treatments such as light to heavy rehabilitation as opposed to lower cost light to heavy maintenance treatments. In addition, when repairs are deferred, they fall into a deferred maintenance backlog that creates a vicious cycle. As necessary repairs are postponed, streets start to deteriorate requiring more expensive repair treatments.

Chart 8: PCI Scenario 4
Based on the identified needs and current funding sources available to the City for its pavement maintenance, staff believes there are no long-term options available that can overcome the condition and replacement cost of the City's streets without a new and significant source of income for street repair.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Financing Options - Types of Municipal Debt
General Obligation Bonds
General Obligation Bonds (GO Bonds) are municipal bonds that provide a way for local governments to raise money for projects (e.g. streets and roads) that may not generate a revenue stream directly. GO Bonds require voter approval of a new revenue source (property taxes) to pay debt service. These bonds are secured by the full faith, credit, and taxing power of the municipality, which typically results in the lowest possible interest rates for financing a capital project, which is the primary advantage of borrowing money by issuing GO bonds. These types of bonds are approved by a 2/3rd voter approval and paid from an additional property tax levied on property owners.

Another advantage of using GO Bonds to finance capital projects is the generally lower cost of issuance, when compared to most other methods of financing capital projects.

This is because the legal structure for the issuance of GO Bonds is less complex than most other financing methods. Cities borrow funds to pay for infrastructure with a long useful life, rather than using current cash. In the case of public assets like a street, paying for it over time provides “intergenerational equity.”
Pros/Cons of GO’s Bonds
 Pros:
o Lowest Cost
o Does not rely on existing General Fund resources
 Cons:
o Long lead time, usually 9-12 months
o High voter hurdle, requires 2/3 voter approval
o Limited flexibility of use of proceeds
o Property owners are paying for the use of the City instead of users paying Lease Revenue Bonds
Lease revenue bonds (LRBs) are another form of debt financing public agencies often use to fund capital projects, including street and road upgrades. To utilize LRBs the City would establish a separate public financing entity that would issue the bonds and collect lease payments from the City in an amount sufficient to cover the debt service payments.

LRBs usually finance the construction of facilities, including office buildings, correction facilities, courthouses, and streets and are secured through an encumbrance on a City building or facility. However, unlike revenue bonds that use money generated by the project itself (e.g. a bridge toll or water system project) to make the debt service payments, facilities funded by LRBs often do not have a dedicated funding source. For this reason, the issuance of LRBs are often paired with a new funding source (e.g. new sales tax measure) sufficient to cover the debt service.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Pros/Cons of LRBs
 Pros:
o City Council approval of bond issuance, although voter approval could be necessary based on the funding source (Sales Tax Measure) o Quick implementation
o Very flexible/widely available
 Cons:
o General Fund obligation
o Encumbrance of facility
o Requires a new funding source, such as a voter approved sales tax measure
After reviewing the two Bond options available, the LRBs appear as the logical choice with a new form of revenue like a sales tax measure to fund the payment of this obligation.

City staff worked with an independent municipal advisor to provide potential terms and bonding amounts. Below is table 9 comparing a 30-year and 20-year term LRB:

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Table 9: 2025 Lease Revenue Bond
To move forward with this option, the City could place a 1% local sales tax measure on the November 2024 ballot; staff estimates that the proposed sales tax measure would generate an estimated $6 million annually in additional revenue. The estimated 1% local sales tax of $6 million is based on doubling the current Measure O-06 0.5% sales tax totals of approximately $3 million annually.

Use of LRBs for Streets Repair
Based on the information in Table 8 above, staff worked with the City’s pavement consultant to review scenarios that used the 30-year term LRBs of approximately $49 million, with a debt service payment of approximately $3 million, leaving a remaining $3

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

million for annual ongoing infrastructure maintenance. Scenarios A through D below depict costs and PCI projections for the next 15 years.

To create Scenario A, the following funds were included in the first 5 years of projections:
 $49 million received from the issuance of LRBs +
 $3 million in revenue per year for 5 years from the new 1% local sales tax +  $1.25 million from Measure O 2006 Sales Tax Funds revenue This would bring the total spent in the first 5 years of streets repairs to $70.25 million ($49 million in LRBs funding + $3 million/year in new 1% local sales tax for 5 years + $1.25 million in Measure O 2006 Sales Tax Funds for 5 years). In the years after the initial 5- year spending plan, the City would be able to allocate a total of $4.25 million annually to pavement maintenance ($3 million in new 1% local sales tax + $1.25 million in Measure O 2006 Sales Tax Funds). This scenario is depicted as Scenario A in Chart 9 below.

Scenario B depicted in Chart 9 below uses the same first 5-year projections as Scenario A, but includes an estimated $5 million in annual maintenance after the first five years.

This scenario is provided for information purposes to depict the anticipated PCI level with an additional $1.25 million for annual maintenance. The City does not currently have an anticipated revenue source for a full $5 million in annual maintenance.

Scenario C depicted in Chart 9 below used the 30-year term LRBs of approximately $49 million spent on street repairs over the course of 10 years rather than 5, along with debt service payments of approximately $3 million per year, leaving a remaining $3 million for annual ongoing infrastructure maintenance for the last 5 years of the projection. Under this scenario, the total spent in the first 10 years of streets repairs would be $91.5 million ($49 million in LRBs funding + $3 million/year in new 1% local sales tax for 10 years + $1.25 million in Measure O 2006 Sales Tax Funds for 10 years). In the years after the initial 10-year spending plan, the City would be able to allocate a total of $4.25 million annually to pavement maintenance ($3 million in new 1% local sales tax plus $1.25 million in Measure O 2006 Sales Tax Funds).

Scenario D depicted in Chart 9 below projects PCI levels that would result from the use of $6 million from a new 1% sales tax measure plus $1.25 million in revenue from Measure O 2006 Sales Tax Funds. This scenario would not include revenue from LRBs or any other long term debt solution.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

Chart 9: 15 Year PCI Projections
A summary of each of the scenario projections are as follows:
 Scenario A: $70.25 million ramp up over 5 years, with $4.25 million annual maintenance after that – overall cost over the 15-year period of $153,750,000  Scenario B: $70.25 million ramp up over 5 years, with $6.25 million annual maintenance after that – overall cost over the 15-year period $173,750,000  Scenario C: $91.5 million ramp up over 10 years, with $4.25 million annual maintenance after that – overall cost over the 15-year period $111,250,000  Scenario D: $7.25 million over 15 years – overall cost over the 15-year period $108,750,000
Based on this analysis, it does not appear to staff that LRBs are the best option for the City. While the influx of revenue from LRBs would allow the City to increase the average PCI from 56 to 66 by FY 2028-29, it is estimated that the City would need to invest significantly more money than would be available even with a new 1% sales tax measure.

As a result, the City’s average PCI would yet again degrade in the out years of the 15- 64 63
65 69
60 62
56 61
50 55
60 65
70PCI Range
Year
Funding Scenarios - 15 Year Projections (Parking Lots
Excluded)
Scenario A:
$70.25M/5Yrs
($14.05M/Yr)
then $4.25M for
10 Years
Scenario B:
$70.25M/5Yrs
($14.05M/Yr)
then $6.25M for
10 Years
Scenario C:
$91.5M/10Yrs
($9.15M/Yr)
then $4.25M for
5 Years
Scenario D:
$7.25M/Yr

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

year projection while at the same time requiring the City to make ongoing debt service payments for at least an additional 15 years. At this time, staff would recommend the City Council move forward with placing a 1% local sales tax measure on the November 2024 ballot for voter consideration. if approved by the voters, the City Council would then have the opportunity to consider using a significant portion of the increased annual revenue of approximately $6 million dollars directly towards Fire Service, the Police Department, and Streets Infrastructure Maintenance consistent with State law. This could enable the City to maintain road conditions using the Critical Point Strategy approach.

Sales Tax Measure
The City has the authority to raise revenues by the adoption and imposition of taxes. (Gov. Code §§ 50075.) To make a change to any general tax rate, the change must be approved by the voters. Proposition 218, approved in 1996, requires that all City tax election measures be placed on the same election when City Council Members are selected unless a financial emergency is declared. The next City Council election is scheduled for November 5, 2024. Subsequent City Council elections are held every two years. To place a tax measure on the November 5, 2024, ballot, 2/3 of the City Council (at least four members) must approve a Resolution ordering the submission to the qualified electors of the City a measure relating to the establishment of a local transactions and use tax and an Ordinance adding Chapter 3.23 to Title 3 of the AGMC regarding a transactions and use tax. Additional Resolutions are also required regarding the filing of written arguments. Once placed on the ballot, the measure must be approved by 50% +1 votes of voting residents of the City. If passed by the City Council and the electorate, the tax would be effective no sooner than the first day of the first calendar quarter, commencing more than 110 days after the adoption of the ordinance. Therefore, the tax would be effective no sooner than April 1, 2025.

Advantages and Disadvantages of Sales Tax Measure
As with most policy actions, enacting an increase to the sales tax has advantages and disadvantages.

Some arguments in favor include:
 Unlike property taxes, sales taxes are paid by a greater distribution of the population, including travelers, tourists, homeowners, renters, employees, and businesses in the City;
 Sales taxes are not paid on many basic necessities such as rent, groceries, sales of items paid for with food stamps, prescription medicine and certain medical devices, and services;
 Sales taxes are paid based on consumption (those who can afford to spend more pay more), and they are paid incrementally instead of in a lump sum;  Because the tax is established by a vote of the local electorate, it cannot be taken by the State;

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

 The sales tax would generate additional revenue to maintain the City’s Police Services, Fire Services, and Roads Infrastructure, which staff believes are a critical component of a functioning community;
 All other jurisdictions in the Region, excluding Pismo Beach and the unincorporated County, have an additional 1% sales tax in their City; therefore staff believes:
o There is no competitive advantage shown for having a lower sales tax rate; o Arroyo Grande citizens make many purchases outside of the City and may be paying a higher rate already, while none of that tax supports services in Arroyo Grande.

Some arguments against include:
 Additional taxes reduce the discretionary income of those shopping in Arroyo Grande;
 Tax increases are not generally perceived positively by the citizenry and may erode trust in local government;
 This is a general tax and there is no guarantee on how the additional revenue will be spent.

Potential Impact on Local Sales
The actual amount of proposed increase in the sales tax appears minimal when compared to the actual cost of a product sold. For example, for every $100 spent on taxable goods, the increase would result in an additional $1.00 paid by the consumer. Sales tax data trends show that an increase in the sales tax rate of one cent has no noticeable effect on the amount of taxable goods consumers buy. In other words, in other jurisdictions where the sales tax has been increased, the businesses did not see a decline in sales because the sales tax rate had been increased. The City’s sales tax consultant does not believe that an increase of one cent in the sales tax rate in Arroyo Grande will affect local business sales volumes.

It is estimated that a 1% sales tax would generate approximately $6 million annually for Arroyo Grande that cannot be taken by the State.

Sales Tax Options
If the City Council decides to move forward with a sales tax measure, it will require decisions on the following key issues in order to draft the measure:
 Amount of Increase – Staff recommends that 1% be proposed as the local sales tax amount as the City could utilize that 1% to address deteriorating infrastructure needs. The City has statutory authority to impose a sales tax at a rate of 0.125 or a multiple thereof. (Rev. & Tax. Code § 7285.9.)
 Local Sales Tax Allocation Report – It is important that the public be able to see where the funds are being spent to give assurance that they are being spent

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

properly. To ensure accountability, Measure O 2006 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. Staff recommends providing a Local Sales Tax Allocation Report.
 Sunset Clause – Sunset clauses state that a tax measure ends or “sunsets” after a certain period of time. Sunset clauses can be perceived as beneficial because the tax is temporary and voters retain control over the tax. They are particularly popular when the tax will be used for a project of limited duration or to fund onetime expenditures. In this case, while the need to repair and maintain the City’s roads and infrastructure in ongoing, staff recommends that a sunset clause be added to the measure. A sunset clause was included in the polling and as part of the public outreach that staff has done in support of the City Council’s direction, it has become clear that a sunset clause would help build public trust. The City would collect the sales tax for a period of time, spending the funds as directed and then would need to place it back on the ballot in order to continue collection of the funds.

Next steps
In order to place the local sales tax measure on the November 5, 2024, ballot, the City Council will need to adopt a Resolution placing a measure on the ballot prior to the Registrar of Voters (ROV) deadline of June 18, 2024. In order to provide staff enough time to submit the proper paperwork and related resolutions and ordinances to the ROV, a decision should be made by the May 28, 2024, City Council meeting. Below is a timeline of events associated with a potential sales tax measure.

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

ALTERNATIVES:

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

1. Receive a presentation regarding Financing Options related to the top three priorities from the Community Survey Results and direct staff to prepare a ballot measure for the November 5, 2024, consolidated election seeking a 1% Local Transaction and Use Tax (“Sales Tax”) increase, to be provided at the May 28, 2024, City Council meeting;

2. Receive a presentation regarding Financing Options related to the top three priorities from the Community Survey Results and do not direct staff to prepare a ballot measure for the November 5, 2024, consolidated election seeking a 1% Local Transaction and Use Tax (“Sales Tax”) increase; or

3. Provide other direction to staff.

ADVANTAGES:

Seeking an additional 1% sales tax will enable the City to significantly increase its investment in existing programs and infrastructure needs. A new 1% sales tax will bring the City on par with the other cities in the County and allow the City to reinvest the 1) Adopt Resolution Calling and giving notice of the November 5, 2024 General Municipal Election
2)
Adopt Resolution Requesting that the SLO County Board of Supervisors consolidate the City’s General Municipal Election with the Statewide General Election (EC 10403);
3) Adopt a Resolution adopting regulations for candidates pertaining to candidate statements
4)
Adopt Resolution ordering the submission to the qualified electors of the city of a certain measure relating to Transaction and Use Tax at the General Municipal Election to be held on Tuesday, November 5, 2024, as called by Resolution No. ___
5) Introduce Ordinance – Transaction and Use Tax
6)
Adopt Resolution setting priorities for filing written arguments regarding measure and directing the City Attorney to prepare an impartial analysis
7) Adopt Resolution providing for the filing of rebuttal arguments June 25, 2024
July 20 – July 29, 2024
July 30, 2024
July 31 – August 9, 2024
By August 9, 2024 Last day to file final ballot measure documents (Arguments, Impartial Analysis, with County Clerk/ROV for inclusion voter information guide 10-day Public Examination Period for Rebuttal Arguments Last Day to File Rebuttal Arguments
10-day Public Examination Period for Arguments and Impartial Analysis May 28, 2024
July 19, 2024
Adopt Ordinance – Transaction and Use Tax (Required by State Dept of Tax & Administration, but subject to voter approval)
Last Day for Filing Arguments
Impartial Analysis for measure due from City Attorney

Item 12.a.

City Council
Discussion of Financing Options Related to the Top Three Priorities from the Community Priorities Survey Results and City Council Direction on a Potential Sales Tax Measure
May 14, 2024

increased revenue in existing programs and critical infrastructure necessary to safely move goods and services throughout the City. Sales taxes are paid by visitors to the City and not just residents, ensuring that costs are distributed to those who use the City’s facilities and services. Increased sales taxes paid by customers within the City will be retained and reinvested within the City, providing a greater benefit to residents and businesses.

DISADVANTAGES:

If the voters approve a new 1% sales tax measure, costs for certain goods will increase within the City. Even with the revenue from a new 1% sales tax measure, the City’s average PCI is anticipated to remain at current levels or increase only slightly over the course of 15 years. Additional funding sources are still needed to address the City’s deferred and ongoing maintenance of existing streets infrastructure.

ENVIRONMENTAL REVIEW:

The discussion and direction sought by the City Council as part of this item 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.