Arroyo Grande City Council
June 11, 2024

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, June 11, 2024, 5:00 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 MEETING 5:00 P.M.:

1. CALL TO ORDER

2. ROLL CALL

3. FLAG SALUTE

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS

5. CLOSED SESSION
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
(1) Case: City of Arroyo Grande v. Adam Hideo Saruwatari, Trustee, etc., et al., Case No. 24CV-0368

6. ADJOURNMENT
REGULAR MEETING 6:00 P.M.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

ARROYO GRANDE VALLEY KIWANIS CLUB

5. AGENDA REVIEW

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

June 11, 2024
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
(1) Case: City of Arroyo Grande v. Adam Hideo Saruwatari, Trustee, etc., et al., Case No. 24CV-0368

5.b Ordinances read in title only
None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring June 19, 2024 as "Juneteenth Day"

6.b 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 May 1 through May 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 April 30, 2024, as required by Government Code Section 53646(b).

9.c Consider Approval of Fiscal Year 2024-25 Appropriation Limit (VALENTINE)
Recommended Action:
1) Adopt a Resolution adopting a tax proceeds expenditure appropriation limit for Fiscal Year 2024-2025; and
2) Determine that establishing the appropriation limit for FY 2024-25 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.d Adoption of a Resolution Updating the Fund Balance and Reserve Policy (VALENTINE)
Recommended Action:
1) Adopt a Resolution Updating the Fund Balance and Reserve Policy; and 2) Determine that adopting a resolution updating the Fund Balance and Reserve Policy 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)- (3), 15378.)

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

Approve the minutes of the Regular City Council Meetings of May 14, 2024, and May 28, 2024, as submitted.

9.f Amendments to the Central Coast Blue Regional Recycled Water Authority Joint Exercise of Powers Agreement
(DOWNING)
Recommended Action:
1) Adopt a Resolution approving Amendment Number 1 to the Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority; and 2) Determine that adopting the Resolution is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378)

9.g Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services (MARTINEZ)
Recommended Action:
1) Approve a Memorandum of Understanding between the City of Arroyo Grande and the Lucia Mar Unified School District (LMUSD) to share the cost of salary and benefits for one School Resource Officer (SRO) position in Fiscal Year (FY) 2024-25; and 2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.h Temporary Use Permit 24-004; Authorization for Sale of Beer and Wine at the 2024 Summer Concert Series, an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Temporary Use Permit No. 24-004 to allow the sale of beer and wine at the 2024 Heritage Square Park Summer Concert Series and approving a waiver of fees; and
2) Find the action exempt from the California Environmental Quality Act pursuant to Section 15304 of the CEQA Guidelines.

9.i Consideration of Acceptance of the Five Cities Fire Authority Station #1 Emergency Generator Replacement Project, PW 2021-09

(ROBESON)
Recommended Action:
1) Accept the project improvements as constructed by Electricraft, Inc. in accordance with the plans and specifications for the Five Cities Fire Authority (FCFA) Station #1 Emergency Generator Replacement Project, PW 2021-09;
2) Direct staff to file a Notice of Completion; and
3) Authorize release of retention thirty-five (35) days after the Notice of Completion has been recorded if no liens have been filed.

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

Authorize the City Manager to fully execute a temporary construction easement (TCE) for certain real property, more particularly described as Assessor Parcel Number 007-481-011, that is necessary for the Traffic Way Bridge Replacement Project.

10. PUBLIC HEARINGS
None.

11. OLD BUSINESS

11.a Adopt Resolutions of Approval for the Fiscal Year (FY) 2024-25 Mid-Cycle Budget Update Report and the 5-Year Capital Improvement Program Budget FY 2024-29 Recommended Action:
1)Adopt a Resolution approving the Fiscal Year 2024-25 Budget and Making Appropriations for the Amount Budgeted; and
2) Adopt a Resolution approving the Fiscal Year 2024-29 Capital Improvement Program Budget and Making Appropriations for the Amount Budgeted.

12. NEW BUSINESS
None.

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 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Cash Disbursement Ratification DATE: June 11, 2024
RECOMMENDATION:

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

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,409,567.10 fiscal impact for the period of May 1 through May 15, 2024, that includes the following items:
 Accounts Payable Checks $923,434.76
 Payroll & Benefit Checks $486,132.34
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:

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

Item 9.a.

City Council
Consideration of Cash Disbursement Ratification
June 11, 2024

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

2. May 3, 2024 – Payroll & Benefit Check Register

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name1 05/03/2024 300995 $ 276.00 TRAINING-TUITION REGISTRATION 010.4203.5501 ALLAN HANCOCK COLLEGE JCCD2 05/03/2024 300996 233.35 PERFORATED PAPER, CHECK STOCK, ENVELOPES 010.4120.5201 AMAZON CAPITAL SERVICES3 05/03/2024 300997 27.48 BAN#9391033186 CC MACHINE 010.4145.5403 AT&T4 05/03/2024 300998 134.39 04/24 TOWER LEASE 010.4201.5303 ATC SEQUOIA LLC 5 05/03/2024 300999 243.25 OFFICE SUPPLIES-WINDOW ENVELOPES 010.4201.5201 BOONE PRINTING & GRAPHICS INC6 05/03/2024 300999 322.19 OFFICE SUPPLIES-ALARM PERMIT RETURN ENVELOPES 010.4201.5201 BOONE PRINTING & GRAPHICS INC7 05/03/2024 301000 1,130.50 ARTS & CRAFTS CLUB WINTER SESSION 010.4424.5351 KENDRA BOWLING 8 05/03/2024 301001 970.00 REPAIR TO TRASH PUMP ENGINE 612.4610.5603 BOYER'S DIESEL 9 05/03/2024 301002 726.00 200LBS CALCIUM HYPOCHLORATE 640.4712.5274 BRENNTAG PACIFIC INC10 05/03/2024 301003 31.70 PW-383 TRASH PUMP FUEL INJECTION CLEANER 612.4610.5603 CARQUEST AUTO PARTS11 05/03/2024 301003 57.31 PD-4613 OIL & FILTER 010.4203.5601 CARQUEST AUTO PARTS12 05/03/2024 301004 130.00 TOWING SERVICE-PD4609 010.4203.5601 COLLEGE TOWING SOUTH13 05/03/2024 301005 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 DYLAN COX14 05/03/2024 301006 480.00 04/24 ROLLER SKATING CLASS 010.4424.5351 DOOMSDAY SKATE LLC15 05/03/2024 301007 40.00 REFUND-DOGGIE AGILITY 010.0000.4605 LYNN DORLAND16 05/03/2024 301008 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 AMBER ESCOBEDO17 05/03/2024 301009 1,818.96 JOINT ADAPTERS 640.4712.5610 FAMCON PIPE AND SUPPLY INC18 05/03/2024 301010 150.00 REFUND-ENRICHMENT CAMP 7/1-7/3 010.0000.4605 CATHYANN FISHER19 05/03/2024 301011 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 JAIME FLORES20 05/03/2024 301012 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 JUANA GALINDO-NINCHE21 05/03/2024 301013 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 TAYLOR HAENEL22 05/03/2024 301014 197.64 05/24 AETNA RESOURCES EAP 010.4145.5147 HEALTH AND HUMAN RESOURCE CTR23 05/03/2024 301014 49.41 05/24 AETNA RESOURCES EAP 010.0000.1111 HEALTH AND HUMAN RESOURCE CTR24 05/03/2024 301015 23.53 PD-FUEL 010.4203.5608 JB DEWAR, INC25 05/03/2024 301016 40.93 GROUNDS MAINT-DRILL BIT 010.4201.5605 MINER'S ACE HARDWARE, INC26 05/03/2024 301017 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 JESSICA MURAKI27 05/03/2024 301018 117.00 PH NOTICE AGTBID 010.4002.5301 NEW TIMES28 05/03/2024 301019 1,035.00 SEWER EASEMENT CORRECTION DOCUMENTS 010.4301.5303 NORTH COAST ENGINEERING INC 29 05/03/2024 301020 143.67 COPIER METER READ 3/28-4/27 010.4204.5602 OFFICE130 05/03/2024 301021 885.49 REIMBURSE LODGING AEP CONFERENCE 010.4130.5501 ANDREW PEREZ31 05/03/2024 301022 200.00 03/24 PARKING CITATION PROCESS 010.4204.5303 PHOENIX GROUP32 05/03/2024 301023 532.11 POSTAGE METER LEASE FEE 010.4102.5602 PITNEY BOWES, INC 33 05/03/2024 301024 2,835.00 QUILTING-WINTER SESSION 2 010.4424.5351 BARBARA ANN PORTER34 05/03/2024 301025 50.00 PARK DEPOSIT REFUND- HERITAGE SQUARE 010.0000.2206 JENN PRENTICE35 05/03/2024 301025 59.00 REFUND PSWP-FEE WAIVED 010.0000.4125 JENN PRENTICE36 05/03/2024 301026 1,092.00 W/E 4/12/24 ACCTG HR SUPPORT 010.4120.5303 ROBERT HALF37 05/03/2024 301026 1,092.00 W/E 04/19 ACCTG HR SUPPORT 010.4120.5303 ROBERT HALF38 05/03/2024 301027 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 DENISE RUIZ

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name39 05/03/2024 301028 $ 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 LIBNY SALGADO40 05/03/2024 301029 69.50 03/24 PARKING CITATION REVENUE 010.0000.4203 SLO COUNTY AUDITOR-CONTROLLER41 05/03/2024 301030 2,807.90 2024 CLETS INVOICING 13 MNE 010.4204.5606 SLO COUNTY SHERIFF'S DEPT42 05/03/2024 301031 141.00 REFUND INSPECTION FEE BLD23-000503 010.0000.4183 SLO CRAFT INC 43 05/03/2024 301032 15.91 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS44 05/03/2024 301032 33.21 GAS SERVICES-111 S MASON 010.4145.5401 SOCALGAS45 05/03/2024 301032 32.49 GAS SERVICES-215 E BRANCH 010.4145.5401 SOCALGAS46 05/03/2024 301032 50.32 GAS SERVICES-211 VERNON ST 010.4145.5401 SOCALGAS47 05/03/2024 301033 32.00 BASKETBALL SCORER-2 GAMES X $16 010.4424.5352 ZACHARY SORIANO48 05/03/2024 301034 1,000.00 CHAMBER MEMBERSHIP-GOLD LEVEL 010.4145.5503 SOUTH COUNTY CHAMBERS49 05/03/2024 301035 19.24 BACKGROUND INVESTIGATION SVCS 010.4201.5315 TRANS UNION LLC50 05/03/2024 301036 113.11 KONICA COPIER METER READ 04/24 010.4102.5602 ULTREX BUSINESS PRODUCTS (DBA) 51 05/03/2024 301037 1,314.08 ACCT#20862661-00002 PD CELL PHONES 010.4201.5403 VERIZON WIRELESS52 05/03/2024 301038 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 VILLAGE CREATIVE53 05/03/2024 301039 5,000.00 SOJERN CO-OP MARKETING 240.4150.5301 VISIT SLO CAL54 05/03/2024 301040 1,092.78 COPY MACHINE LEASE PYMT 07/20 010.4201.5803 WELLS FARGO VENDOR FINANCIAL 55 05/03/2024 301041 2,793.00 SOCCER-WINTER SESSION 3 010.4424.5351 YOUTH EVOLUTION BASKETBALL56 05/03/2024 301042 15,228.50 MEDICARE 011.0000.2105 CITY OF ARROYO GRANDE57 05/03/2024 301042 62,616.34 SOCIAL SECURITY 011.0000.2105 CITY OF ARROYO GRANDE58 05/03/2024 301042 61,429.36 FEDERAL WITHHOLDING 011.0000.2104 CITY OF ARROYO GRANDE59 05/03/2024 301043 25,158.53 STATE WITHHOLDING 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT60 05/03/2024 301043 5,177.02 CASDI 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT61 05/03/2024 301044 401.06 DEPT OF CHILD SUPPORT SERVICES 011.0000.2114 CA STATE DISBURSEMENT UNIT62 05/03/2024 301045 7,871.00 DENTAL INSURANCE 011.0000.2110 DELTA DENTAL63 05/03/2024 301045 2,518.72 05/23 DELTA DENTAL RETIREE PREMIUM 010.4099.5132 DELTA DENTAL64 05/03/2024 301046 350.78 ROTH % - AFTER TAX 011.0000.2117 ICMA RETIREMENT CORP65 05/03/2024 301046 6,370.99 DEFERRED COMPENSATION - EE % 011.0000.2117 ICMA RETIREMENT CORP66 05/03/2024 301046 10,483.72 DEFERRED COMPENSATION - EE 011.0000.2117 ICMA RETIREMENT CORP67 05/03/2024 301046 891.66 DEFERRED COMPENSATION - ER 011.0000.2117 ICMA RETIREMENT CORP68 05/03/2024 301046 135.00 ROTH - AFTER TAX 011.0000.2117 ICMA RETIREMENT CORP69 05/03/2024 301047 2,078.54 PERS GOLD - FIRE MANAGEMENT 011.0000.2109 PERS - ACTIVE MED70 05/03/2024 301047 2,303.00 PPO PERS PLATINUM - FIRE 011.0000.2109 PERS - ACTIVE MED71 05/03/2024 301047 16,468.44 PPO PERS GOLD - FIRE 011.0000.2109 PERS - ACTIVE MED72 05/03/2024 301047 810.24 BLUE SHIELD TRIO HMO - FIRE 011.0000.2109 PERS - ACTIVE MED73 05/03/2024 301047 8,211.26 HMO UNITED HEALTHCARE-FIRE 011.0000.2109 PERS - ACTIVE MED74 05/03/2024 301047 4,357.00 HMO-UNITED HEALTH FIRE-MGMT 011.0000.2109 PERS - ACTIVE MED75 05/03/2024 301047 4,742.00 PORAC MED INSURANCE 011.0000.2109 PERS - ACTIVE MED76 05/03/2024 301047 1,738.28 HMO BLUESHIELD - SEIU 011.0000.2109 PERS - ACTIVE MED

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name77 05/03/2024 301047 $ 11,032.26 PPO PERS GOLD - MANAGEMENT 011.0000.2109 PERS - ACTIVE MED78 05/03/2024 301047 11,192.14 PPO PERS GOLD - POLICE 011.0000.2109 PERS - ACTIVE MED79 05/03/2024 301047 18,387.10 PPO PERS GOLD - SEIU 011.0000.2109 PERS - ACTIVE MED80 05/03/2024 301047 3,727.10 BLUE SHIELD TRIO HMO - MGMT 011.0000.2109 PERS - ACTIVE MED81 05/03/2024 301047 9,560.82 BLUE SHIELD TRIO HMO - POLICE 011.0000.2109 PERS - ACTIVE MED82 05/03/2024 301047 4,213.24 BLUE SHIELD TRIO HMO - SEIU 011.0000.2109 PERS - ACTIVE MED83 05/03/2024 301047 18,704.54 HMO-UNITED HEALTHCARE-MGMT 011.0000.2109 PERS - ACTIVE MED84 05/03/2024 301047 9,384.28 HMO UNITED HEALTHCARE-POLICE 011.0000.2109 PERS - ACTIVE MED85 05/03/2024 301047 18,936.16 HMO UNITED HEALTHCARE-SEIU 011.0000.2109 PERS - ACTIVE MED86 05/03/2024 301047 363.29 05/24 ACTIVE HEALTH ADMIN FEE 010.4145.5131 PERS - ACTIVE MED87 05/03/2024 301047 7,494.92 05/24 RETIREE HEALTH INSURANCE 010.4099.5136 PERS - ACTIVE MED88 05/03/2024 301047 635.24 05/24 RETIREE HEALTH INSURANCE 220.4303.5136 PERS - ACTIVE MED89 05/03/2024 301047 0.01 ROUNDING DIFFERENCE 010.0000.4818 PERS - ACTIVE MED90 05/03/2024 301047 103.44 05/24 FCFA ACTIVE HEALTH ADMIN 010.0000.1111 PERS - ACTIVE MED91 05/03/2024 301047 800.48 05/24 FCFA RETIREE HEALTH INSU 010.0000.1111 PERS - ACTIVE MED92 05/03/2024 301048 2,178.49 05/24 ACTIVE HEALTH INS PT NONPERS 011.0000.2109 PERS - ACTIVE MED93 05/03/2024 301048 6.97 05/24 ACTIVE HEALTH INS ADMIN FEE-PT NONPERS 010.4145.5131 PERS - ACTIVE MED94 05/03/2024 301049 43,887.31 PERS RETIREMENT 011.0000.2106 PERS - RETIREMENT95 05/03/2024 301049 58,658.64 PERS RETIREMENT 011.0000.2106 PERS - RETIREMENT96 05/03/2024 301049 1,580.68 PERS Employer Pick Up 011.0000.2106 PERS - RETIREMENT97 05/03/2024 301049 497.46 PERS BUYBACK - PRE TAX 011.0000.2106 PERS - RETIREMENT98 05/03/2024 301049 (0.05) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT99 05/03/2024 301050 2,624.51 STANDARD INSURANCE COMPANY 011.0000.2113 STANDARD INSURANCE CO100 05/03/2024 301051 885.95 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA101 05/03/2024 301052 677.34 05/24 VISION PREMIUM RETIREES 010.4099.5133 VISION SERVICE PLAN102 05/03/2024 301052 2,200.80 VISION CARE INSURANCE 011.0000.2119 VISION SERVICE PLAN103 05/10/2024 301053 33,746.40 AG WARMING CENTER 23-24 260.4565.5303 5 CITIES HOMELESS COALITION104 05/10/2024 301054 925.00 02/24 CODE ENFORCEMENT SVCS 010.4101.5303 ADAMSKI MOROSKI MADDEN105 05/10/2024 301055 1,350.00 ELECTRONICS RECYCLING, DATA DESTRUCTION 010.4140.5303 ALL GREEN ELECTRONICS106 05/10/2024 301056 12.81 USB-C CABLE 010.4140.5602 AMAZON CAPITAL SERVICES107 05/10/2024 301057 550.00 LEAK DETECTION OF LANDSCAPE SYSTEM @ ELM ST. PARK226.4306.5303 AMERICAN LEAK DETECTION-SLO 108 05/10/2024 301058 20.46 REPLACE MAILBOX-FAIRVIEW PROJECT 640.4712.5255 ARROYO GRANDE HOME & GARDEN109 05/10/2024 301059 1,778.52 REPAIRS TO PW-10 SERVICE TRUCK 640.4712.5601 BACK ON THE ROAD AUTOMOBILE 110 05/10/2024 301059 504.43 4605 - REPAIR 010.4204.5601 BACK ON THE ROAD AUTOMOBILE111 05/10/2024 301060 818.00 CASH FOR GRASS-818 SQFT 226.4306.5554 NATHAN BARBER112 05/10/2024 301061 41.23 CORP YARD-HOSE BIBB, COUPLER, TEE 010.4213.5604 BRISCO MILL & LUMBER YARD113 05/10/2024 301061 144.37 HEADLAMP, TOOLSET 220.4303.5273 BRISCO MILL & LUMBER YARD114 05/10/2024 301061 128.75 WORK GOLVES, RATCHET SET 220.4303.5273 BRISCO MILL & LUMBER YARD

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name115 05/10/2024 301061 $ 144.21 POSTMASTER FENCE POSTS, BIT HOLDER, STRAP MARKER010.4420.5605 BRISCO MILL & LUMBER YARD 116 05/10/2024 301062 192.00 04/24 CLOGGING CLASS 010.4424.5351 KATHLEEN J CINOWALT117 05/10/2024 301063 1,314.47 TONER CARTRIDGES (8) CDD PRINT 010.4130.5201 COAST TO COAST118 05/10/2024 301064 3,096.01 SWINGING BRIDGE EVALUATION & REHAB PROJECT 350.5620.7501 CONSOR NORTH AMERICA INC119 05/10/2024 301064 34,044.24 TRAFFIC WAY BRIDGE DESIGN & ENVIRONMENTAL SERVICE350.5679.7501 CONSOR NORTH AMERICA INC120 05/10/2024 301065 644.13 SCANNER HOLD UP ROLLER UNIT 010.4130.5201 CRISP IMAGING121 05/10/2024 301066 515.20 04/24 SENIOR FITNESS 010.4424.5351 GAYLE CUDDY122 05/10/2024 301067 78.75 04/24 LINE DANCING 010.4424.5351 ZOE DASCALOS123 05/10/2024 301068 5,000.00 FY23/24 REV MEASURE PROJECT DIGITAL MEDIA BUY 010.4101.5303 DATA GENOMIX LLC124 05/10/2024 301069 2,177.00 FCFA GENERATOR REPLACEMENT PROJECT 350.5473.7001 ELECTRICRAFT INC125 05/10/2024 301070 994.00 04/24 BRIDGE GAMES & CLASSES 010.4424.5351 FIVE CITIES DUPLICATE BRIDGE126 05/10/2024 301071 19,131.63 AG TRAFFIC WAY BRIDGE REPLACEMENT 350.5679.7303 HAMNER-JEWELL ASSOCIATES 127 05/10/2024 301072 4,563.39 1100 GALL RED DIESEL 010.0000.1202 JB DEWAR, INC128 05/10/2024 301073 78.75 04/24 LINE DANCING 010.4424.5351 KAYLYN KELLER 129 05/10/2024 301074 1,456.00 03/24 PROF FEES-400 W BRANCH 010.0000.2563 KOSMONT & ASSOCIATES INC130 05/10/2024 301075 127.00 GRINDING WHEELS, TWIST ON PADS, AIR GUN 010.4305.5255 LAWSON PRODUCTS, INC131 05/10/2024 301076 300.00 SPANISH INTERPRETATION-GENERAL 010.4130.5303 DAVID GASPAR MARTINEZ 132 05/10/2024 301077 470.51 LOCKER ROOM REPLACEMENT LOCKS 010.4201.5604 MCMURRAY STERN133 05/10/2024 301078 49.84 BATTERIES, HANDLE 010.4213.5604 MINER'S ACE HARDWARE, INC134 05/10/2024 301078 27.73 ROLLERS, FRAME, PAINT TRAY 010.4213.5604 MINER'S ACE HARDWARE, INC135 05/10/2024 301078 48.48 SURGE PROTECTOR 010.4213.5604 MINER'S ACE HARDWARE, INC136 05/10/2024 301078 47.36 FLAPPER, FLUSH LEVERS 010.4213.5604 MINER'S ACE HARDWARE, INC137 05/10/2024 301078 32.27 (5) DISINFECTANT SPRAY 010.4213.5604 MINER'S ACE HARDWARE, INC138 05/10/2024 301078 53.84 FLUSH LEVERS 010.4213.5604 MINER'S ACE HARDWARE, INC 139 05/10/2024 301078 6.45 DISINFECTANT SPRAY 010.4213.5604 MINER'S ACE HARDWARE, INC140 05/10/2024 301078 225.20 STREET-20 VOLT BATTERY 2 PACK 220.4303.5255 MINER'S ACE HARDWARE, INC141 05/10/2024 301078 129.28 (2) AQUAPHALT ASPHALT PATCH 220.4303.5613 MINER'S ACE HARDWARE, INC 142 05/10/2024 301078 24.96 SOTO-CLEANERS, SCOURING PAD 010.4430.5604 MINER'S ACE HARDWARE, INC143 05/10/2024 301079 5,372.50 COMPREHENSIVE GENERAL PLAN UPDATE 010.4130.5303 MINTIER HARNISH LP144 05/10/2024 301080 460.80 04/24 YOGA IN THE PARK 010.4424.5351 NICCOLA NELSON145 05/10/2024 301081 100.00 PRE-EMPLYMNT MEDICAL TESTING-A 010.4201.5315 PACIFIC CENTRAL COAST HEALTH146 05/10/2024 301082 18,465.00 2022 SLURRY SEAL PROJECT CONSTRUCTION INSPECTION 350.5638.7401 PAVEMENT ENGINEERING INC 147 05/10/2024 301083 25.03 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY148 05/10/2024 301083 48.02 WOMEN'S CLUB MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY149 05/10/2024 301083 27.63 PD MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY150 05/10/2024 301083 31.17 REC DEPT MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY151 05/10/2024 301083 25.03 CITY HALL MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY152 05/10/2024 301083 48.02 WOMEN'S CLUB MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name153 05/10/2024 301083 $ 27.63 PD MATS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY154 05/10/2024 301083 31.17 REC DEPT MATS, MOPS 010.4213.5303 PRUDENTIAL OVERALL SUPPLY155 05/10/2024 301083 16.38 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY156 05/10/2024 301083 37.10 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY157 05/10/2024 301083 36.68 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY158 05/10/2024 301083 16.38 AUTO SHOP UNIFORMS 010.4305.5143 PRUDENTIAL OVERALL SUPPLY159 05/10/2024 301083 36.47 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY160 05/10/2024 301083 57.31 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY161 05/10/2024 301083 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY162 05/10/2024 301083 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY163 05/10/2024 301083 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY164 05/10/2024 301083 46.72 WATER DEPT UNIFORMS 640.4712.5143 PRUDENTIAL OVERALL SUPPLY165 05/10/2024 301083 36.47 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY166 05/10/2024 301083 57.31 PARKS DEPT UNIFORMS 010.4420.5143 PRUDENTIAL OVERALL SUPPLY167 05/10/2024 301083 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY168 05/10/2024 301083 19.44 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY169 05/10/2024 301083 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY170 05/10/2024 301083 23.08 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 PRUDENTIAL OVERALL SUPPLY171 05/10/2024 301083 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY172 05/10/2024 301083 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY173 05/10/2024 301083 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY174 05/10/2024 301083 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY175 05/10/2024 301083 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY176 05/10/2024 301083 33.18 STREETS DEPT UNIFORMS 220.4303.5143 PRUDENTIAL OVERALL SUPPLY177 05/10/2024 301083 23.63 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY178 05/10/2024 301083 23.63 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY179 05/10/2024 301083 23.77 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY180 05/10/2024 301083 23.77 SEWER DEPT UNIFORMS 612.4610.5143 PRUDENTIAL OVERALL SUPPLY181 05/10/2024 301083 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY182 05/10/2024 301083 24.49 BLDG MAINT UNIFORMS 010.4213.5143 PRUDENTIAL OVERALL SUPPLY183 05/10/2024 301084 20,000.00 FURNISH & INSTRALL 3-RAIL RANCH STYLE VINYL FENCE 010.4420.5303 TYLER JAMES SCHEIDT184 05/10/2024 301085 14.42 PVC CHECK VALVES 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC 185 05/10/2024 301085 146.98 RAINBIRD CONTROL ZONE KIT, CHECK VALVE, TEFLON TAP 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC 186 05/10/2024 301085 126.27 (2) 2.5 GALL HERBICIDE 010.4420.5605 SITEONE LANDSCAPE SUPPLY LLC187 05/10/2024 301085 252.56 (4) 2.5 GALL HERBICIDE 640.4712.5609 SITEONE LANDSCAPE SUPPLY LLC188 05/10/2024 301086 253,683.23 04/30 SEWER SVCS COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST189 05/10/2024 301086 105.72 12 CITY ACCTS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST190 05/10/2024 301087 264.38 (10) ALUMINUM SIGNS 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTS

CITY OF ARROYO GRANDE

CHECK LISTING
MAY 1 - MAY 15, 2024
ATTACHMENT 1
Line Check Date Check # Amount Description Acct # Vendor Name191 05/10/2024 301088 $ 648.02 SPRING BREAK SOCCER CAMP 4/1-4/5 010.4424.5351 UK INT'L SOCCER CAMPS INC192 05/10/2024 301089 928.28 W/E 04/21 PT PARKS WORKER 010.4420.5303 UNITED STAFFING ASSOC. 193 05/10/2024 301090 382.88 ARBOR DAY-(1) #15 OAK, (10) PITTOSPORUM 010.4420.5605 WEST COVINA NURSERIES194 05/10/2024 301091 170.29 UB Refund Cst #00026754 640.0000.2301 AARON BAILEY195 05/10/2024 301092 99.38 UB Refund Cst #00028500 640.0000.2301 SHANNON CARTER196 05/10/2024 301093 24.07 UB Refund Cst #00028346 640.0000.2301 JENNIFER CERA197 05/10/2024 301094 88.98 UB Refund Cst #00022749 640.0000.2301 BRIAN CONAWAY198 05/10/2024 301095 84.44 UB Refund Cst #00027266 640.0000.2301 MICHELLE DI FORTI199 05/10/2024 301096 80.96 UB Refund Cst #00027734 640.0000.2301 MAYRA GUZMAN200 05/10/2024 301097 84.55 UB Refund Cst #00003361 640.0000.2301 JOHN KEEN 201 05/10/2024 301098 231.85 UB Refund Cst #00026182 640.0000.2301 MELISSA LAYSHOTT202 05/10/2024 301099 85.36 UB Refund Cst #00027352 640.0000.2301 JEFF MCIIVEEN203 05/10/2024 301100 225.67 UB Refund Cst #00028342 640.0000.2301 MASON JAMES STRICKLIN ELAN204 05/10/2024 301101 886.00 UNEMPLOYMENT-LEGISLATIVE & INFO SERVICES 010.4002.5142 CA ST EMPLOYMENT DEVEL DEPT205 05/10/2024 301101 5,269.00 UMEMPLOYMENT-RECREATION 010.4421.5142 CA ST EMPLOYMENT DEVEL DEPT206 05/10/2024 301102 69.50 DCA/FSA MAINT FEE 03/24 010.4145.5131 STERLING ADMINISTRATION207 05/10/2024 301103 624.99 DEPENDENT CARE ACCOUNT 011.0000.2127 STERLING ADMINISTRATION208 05/10/2024 301103 1,144.16 FLEXIBLE SPENDING ACCOUNT 011.0000.2127 STERLING ADMINISTRATION $ 923,434.76

.

General Fund 431,599.83 5101 Salaries Full time 276,881.24 Streets Fund 18,354.47 5101 Volunteer Employee Retirement - Sewer Fund 11,468.90 5102 Salaries Part-Time - PPT 7,317.06 Water Fund 24,709.14 5103 Salaries Part-Time - TPT 4,927.10 486,132.34 5105 Salaries OverTime 23,512.00
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,117.90
5108 Holiday Pay 8,143.28
5109 Sick Pay 5,363.45
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 21,904.01 5113 Vacation Pay 5,619.51
Public Works - Maintenance 539.91 5114 Comp Pay 3,955.18 Public Works - Enterprise 1,068.08 5115 Annual Leave Pay 9,561.46 Recreation - Administration - 5116 Salaries - Police FTO 178.84 Recreation - Special Events - 5121 PERS Retirement 40,692.73 Children In Motion - 5122 Social Security 25,878.88
23,512.00 5123 PARS Retirement 177.19
5126 State Disability Ins. 3,710.64
5127 Deferred Compensation 791.66
5131 Health Insurance 58,647.41
5132 Dental Insurance 3,070.06
5133 Vision Insurance 839.38
5134 Life Insurance 412.31
5135 Long Term Disability 426.78
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 118.28
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 2,727.50
486,132.34
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
04/12/24 - 04/25/2024
5/3/2024

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: June 11, 2024
RECOMMENDATION:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of April 30, 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 April 30, 2024, and includes all investments managed by the City. As of April 30, 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
June 11, 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: April 30, 2024

ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
April 30, 2024
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Local Agency Investment Fund $ 8,927,466.63 8,927,466.63 $ 4.272% 27.903% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 4.880% February 21, 2024 12 mos February 21, 2025 0.778% BMW Bank North America 249,000.00 249,000.00 0.500% July 16, 2021 36 mos July 16, 2024 0.778% Mountain America Federal Credit Union 249,000.00 249,000.00 4.750% October 14, 2022 24 mos October 15, 2024 0.778% Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 0.772% Wells Fargo Bank 249,000.00 249,000.00 4.600% October 28, 2022 24 mos October 28, 2024 0.778% Beal Bk Plano TX 247,000.00 247,000.00 1.350% March 26, 2022 36 mos March 26, 2025 0.772% Beal Bk Las Vegas NV 247,000.00 247,000.00 1.250% March 26, 2022 36 mos March 26, 2025 0.772% First Technology Federal 248,000.00 248,000.00 5.000% April 14, 2023 24 mos April 14, 2025 0.775% Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 0.766% American Express National Bank 246,000.00 246,000.00 3.100% May 25, 2022 36 mos May 25, 2025 0.769% New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.778% Chief Financial Federal Credit Union 249,000.00 249,000.00 4.600% October 12, 2022 36 mos October 14, 2025 0.778% Live Oak Bank 249,000.00 249,000.00 3.150% May 25, 2022 48 mos May 26, 2026 0.778% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.778% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.775% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 0.775% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.759% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 0.775% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.778% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.775% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.769% United Teletech Financial Credit Union 248,000.00 248,000.00 3.500% November 8, 2023 53 mos April 1, 2028 0.775% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.763% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.778% Total Certificates of Deposit 5,943,000.00 5,943,000.00 18.572% Agency Bonds
Federal Farm Credit Bank 1,999,314.00 1,995,361.18 0.350% December 4, 2020 42 mos May 16, 2024 6.249% Federal Home Loan Bank 499,252.43 510,887.44 1.000% July 19, 2022 29 mos December 20, 2024 1.560% Federal Farm Credit Bank 998,431.00 960,728.49 0.430% March 17, 2021 48 mos March 3, 2025 3.120% Federal Natl Mortgage Assn 1,000,000.00 932,370.52 0.500% October 20, 2020 60 mos October 20, 2025 3.125% Federal Home Loan Bank 999,500.00 923,985.32 0.800% March 17, 2021 60 mos March 10, 2026 3.124% Federal Home Loan Bank 994,396.00 931,160.32 2.400% March 17, 2021 72 mos March 29, 2027 3.108% Federal Home Loan Bank 500,000.00 477,421.44 3.375% May 17, 2022 60 mos May 17, 2027 1.563% Total Agency Bonds 6,731,914.71 6,990,893.43 21.849%
Municipal Bonds Page 19 of 185
ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
April 30, 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 $ 477,850.00 $ 3.100% May 12, 2022 47 mos April 1, 2026 1.537% California State Taxable GO Unlimited 1,256,116.00 1,273,804.00 3.500% November 1, 2023 53 mos April 1, 2028 3.926% Total Municipal Bonds 1,751,654.00 1,747,926.00 5.463%
Treasury Obligations
U.S. Treasury 42-Day Bill 2,471,635.00 2,491,564.00 5.250% March 4, 2024 53 mos May 23, 2024 7.725% U.S. Treasury 182 -Day Bill 2,440,702.50 2,458,606.73 5.200% March 4, 2024 53 mos August 22, 2024 7.628% U.S. Treasury BL-2024 Series 2,489,952.50 2,487,768.55 4.500% March 4, 2024 53 mos November 30, 2024 7.782% U.S. Treasury Z-2026 Series 984,728.00 917,304.69 1.100% December 6, 2021 53 mos May 31, 2026 3.078% Total Treasury Obligations 8,355,243.97 8,387,018.00 26.213% TOTAL INVESTMENTS $ 31,709,279.31 31,996,304.06 $ 100.000%

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consider Approval of Fiscal Year 2024-25 Appropriation Limit DATE: June 11, 2024
RECOMMENDATION:
1) Adopt a Resolution adopting a tax proceeds expenditure appropriation limit for Fiscal Year 2024-2025; and
2) Determine that establishing the appropriation limit for FY 2024-25 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are no significant fiscal or personnel impacts associated with approval of the appropriation limit.

BACKGROUND:

Proposition 4, known as the Gann Initiative, was approved by California voters in 1979, adding Article XIIIB to the California Constitution. This Article established an annual limit (Gann Limit) on the appropriations of tax proceeds for government agencies. In 1990, the article was modified by Proposition 111 and SB 88, which included new adjustment formulas that allow cities a choice in methodologies for determining both the annual growth and inflation factors. The annual population growth factor can be calculated by using the greater of the City of Arroyo Grande or County population growth. Agencies have a choice of using the growth in California per capita personal income, or the growth in non-residential assessed valuation due to new construction within their city. In May 2024, the California Department of Finance released population and per capita personal income information. The population between January 2023 and January 2024 for the City decreased by a half-percent (-0.5%) and the County population decreased by an eightthousandths of a percent (-0.08%). For FY 2024-25, the change in per capita personal income from the prior year increased by three point sixty-two percent (3.62%).

Item 9.c.

City Council
Consider Approval of Fiscal Year 2024-25 Appropriation Limit June 11, 2024

In accordance with Proposition 111, the City’s annual spending limit must be approved by the City Council at the beginning of each fiscal year. The limit is calculated using the previous year’s appropriation limit ($27,890,501), multiplied by the per capita personal income percentage increase (3.62%), and multiplied again by the greater available population growth factor, which for FY 2024-25 is the City’s -0.5%.

ANALYSIS OF ISSUES:

The City is responsible for separating citywide revenues between tax and non-tax revenue and applying the formula to the cumulative appropriation limit. For FY 2024-25, the appropriation limit has been calculated to be $28,875,036. This calculation means the City cannot appropriate more than $28,875,036 of tax-based revenues in FY 2024-25.

The estimated proceeds of taxes subject to appropriation limit for the proposed FY 2024- 25 budget is estimated to be $20,577,352, which is approximately $8.3 million less than the appropriation limit. Therefore, the City is in compliance with Article XIIIB of the California Constitution.

ALTERNATIVES:

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

1. Adopt a Resolution establishing the appropriation limit for FY 2024-25; or

2. Revise and adopt a Resolution establishing the appropriation limit for FY 2024-25; or

3. Provide other direction to staff.

ADVANTAGES:

Adoption of the Resolution establishing the appropriation limit for FY 2024-25 will ensure that the City is in compliance with Article XIIIB of the California Constitution.

DISADVANTAGES:

There are no disadvantages identified with the recommended action.

ENVIRONMENTAL REVIEW:

Establishing the appropriation limit for FY 2024-25 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ADOPTING A TAX PROCEEDS

EXPENDITURE APPROPRIATION LIMIT FOR FISCAL
YEAR 2024-2025
WHEREAS, sections 7900 et seq. of the Government Code provide for the effective and efficient implementation of Article XIIIB of the California Constitution; and WHEREAS, Government Code sections 7901 through 7914 provide that each year, the governing body of each local jurisdiction shall, by resolution adopted at a regularly scheduled meeting, establish the annual adjustment factors to be used and the tax proceeds expenditure appropriation limit.

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

1. The California per capita income and the population for the County of San Luis Obispo, California are recognized as the annual adjustment factors for Fiscal Year 2024-2025.

2. The appropriation limit for Fiscal Year 2024-2025 is hereby set at twenty-eight million, eight hundred seventy-five thousand, thirty-six dollars ($28,875,036).

3. Documentation used in the determination of the tax proceeds expenditure appropriation limit is attached hereto as Exhibit A and incorporated herein by this reference.

4. This Resolution is effective on its date of adoption.

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 11th day of June, 2024.

ATTACHMENT 1
RESOLUTION NO.

PAGE 2
______

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 1

EXHIBIT A

Item 9.d.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Nicole Valentine, Administrative Services Director
SUBJECT: Adoption of a Resolution Updating the Fund Balance and Reserve Policy
DATE: June 11, 2024
RECOMMENDATION:
1) Adopt a Resolution Updating the Fund Balance and Reserve Policy; and 2) Determine that adopting a resolution updating the Fund Balance and Reserve Policy 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)- (3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no fiscal impact resulting from updating the Fund Balance and Reserve Policy.

The total fund balance amounts reported in any given fund will not be altered. Only the consideration of reporting of the individual components that make up the total fund balance are being discussed.

BACKGROUND:

The City Council first adopted the Fiscal Policy on September 5, 1995, and has revised the policy several times, most recently on June 28, 2011. Many of these updates were included with a review of the budget adoption. The current Fiscal Policy states the City will:
 Establish and maintain a Fund Balance reserve goal of 20% of expenditures with a minimum of 15% in the General Fund.
 Maintain a minimum of 5% of the General Fund budget as a Contingency Reserve.

Item 9.d.

City Council
Adoption of a Resolution Updating the Fund Balance and Reserve Policy June 11, 2024

 Contribute 10% of annual appropriations to the improvement of Infrastructure.

Over many years, the City has established a comprehensive and extensive budget and financial policy framework. This framework is reviewed with each Biennial Budget and periodically amended based on the need of the organization as well as changes in mandates and best practices.

In 2009, the Governmental Accounting Standard Board (GASB) introduced GASB Statement No. 54 – Fund Balance Reporting and Governmental Fund Type Definitions.

The statement’s objective is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be applied consistently. The classifications comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in its governmental funds.

In order to apply GASB 54, staff amended the established policies and combined them into a stand-alone comprehensive policy document for easy access and reference. The City’s Biennial Budget will continue to incorporate this information in the financial policy section and reference the adopting resolution. Additionally, the Fund Balance and Reserve Policy will be posted on the City website. The City’s independent auditor will use the definitions of fund balance when providing the City’s annual audit and annual financial statements.

On June 27, 2023, the City Council adopted the FY 2023-25 Biennial Budget, which included an overview of the Consolidated General Fund to provide the City Council and the community the full picture of City revenues, expenditures, ending fund balances, and the updated Consolidated General Fund as shown in Table 1.

Item 9.d.

City Council
Adoption of a Resolution Updating the Fund Balance and Reserve Policy June 11, 2024

Table 1: FY 2023-25 Consolidated General Fund Budget & Available Fund Balance in Thousands
The City’s Annual Comprehensive Financial Report (ACFR) was presented on January 23, 2024, and a request to review the reserve policy was discussed. The Beginning Fund Balances for the funds have been updated upon completion of the ACFR and are shown in Table 2.

General General
Fund Fund
Beginning Fund Balance $8,993 $3,093 $12,086 $8,462 $2,904 $11,366 Revenues:

Revenues 18,544 2,962 21,506 19,000 3,033 22,033
Transfers In 3,114 - 3,114 3,185 - 3,185
Total Revenues 21,658 2,962 24,620 22,185 3,033 25,218
Expenditures:

Salaries and Benefits 12,089 - 12,089 12,437 - 12,437
Services and Supplies 9,435 1,042 10,477 9,775 1,087 10,862 Debt Service 310 - 310 294 - 294
Capital Outlay 240 - 240 150 - 150
Transfers Out 115 2,109 2,224 2,475 3,858 6,333
Total Expenditures 22,189 3,151 25,340 25,131 4,945 30,076 Total Operating Incr/(Decr) (531) (189) (720) (2,946) (1,912) (4,858) Available Fund Balance $8,462 $2,904 $11,366 $5,516 $992 $6,508 Reserve % 38.1% 92.2% 44.9% 22.0% 20.1% 21.6%
$ Above Reserve Policy 4,025 2,274 6,299 491 3 494
Funds Available to Allocate 3,500 1,695 5,195 400 - 400 FY 2023-24 FY 2024-25
Local
Sales
Consolidat
ed Total
Local
Sales
Consolidat
ed Total

Item 9.d.

City Council
Adoption of a Resolution Updating the Fund Balance and Reserve Policy June 11, 2024

Table 2: Updated Fund Balances FY 2023-25 Consolidated General Fund Budget & Available Fund Balance in Thousands
The estimated Consolidated General Fund available fund balance at the end of FY 2024- 25 is $13,909,000.

Staff brought forward a Fund Balance and Reserve Policy during the April 9, 2024, City Council meeting to update the existing policy and consider updating the policy to incorporate a Budget Stabilization Reserve, as well as, three replacement/repairs reserves. This item was continued and staff incorporated this discussion in the preliminary budget item presented to the City Council on May 28, 2024.

The City Council reviewed the preliminary budget and provided direction to appropriate $560,000 of Excess Available Consolidated General Fund Balance to the three replacement/repairs reserves:
 Information Technology Reserve
 Fleet Replacement Reserve
 Facility Repairs Reserve
The Fund Balance and Reserve Policy has been updated to incorporate this direction.

ANALYSIS OF ISSUES:

Healthy reserves are a mark of fiscal stability and a cornerstone of financial flexibility. The Government Finance Officers Association best practice recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund

Item 9.d.

City Council
Adoption of a Resolution Updating the Fund Balance and Reserve Policy June 11, 2024

balance in their General Fund of no less than two months (16.67%) of regular general fund operating revenues or operating expenditures.

The updated Fund Balance and Reserve Policy included as Exhibit A to Attachment 1 does not change the current Operating Reserve policy that is equal to 15%, with a goal of 20% of the City’s annual operating expenditures.

The updated Fund Balance and Reserve Policy also maintains a Pension and Other PostEmployment Benefits Reserve. Funds set aside under this reserve shall be used to further mitigate costs associated with pensions and other post-employment benefits. These funds will be used as a funding source for potential additional discretionary payments to pay down unfunded liability, held in the reserve account, or placed in a City Council approved trust instrument. Funds may be used for such purposes as a supplemental funding source for unanticipated increases to the annual pension and/or other postemployment benefit costs resulting from future actuarial assumptions and investment market volatility, or to make the City’s annual payments during times of economic uncertainty as brought on by such circumstances as a recession resulting in funding gaps.

Additionally, the updated Fund Balance and Reserve Policy establishes three replacement/repairs reserves:
 Information Technology Reserve – Funds set aside under this reserve shall be used for information system and technology projects including communications systems, hardware, and software, which are capital in nature. Technology can change rapidly within the information systems sphere and often comes at a large cost. This reserve helps the City keep pace with changes in information technology and take advantage of improvement/efficiency opportunities in this area. While this will not eliminate the need to utilize the General Fund to support technology, it will help defray costs associated with unforeseen impacts to the City’s Information Technology system.
 Fleet Replacement Reserve – Funds set aside under this reserve shall be used to maintain a Fleet Replacement Reserve in the Consolidated General Fund to provide for the timely replacement of existing vehicles should they come to the end of their useful life or become inoperable. The intent of this fund is to help selffinance the City’s fleet needs into the future.  Facility Repairs Reserve – Funds set aside under this reserve shall be to address any unforeseen maintenance and repairs or planned replacements within City

Item 9.d.

City Council
Adoption of a Resolution Updating the Fund Balance and Reserve Policy June 11, 2024

owned facilities. This fund is not intended to support planned facility maintenance and repairs.

The three replacement/repairs reserves would have a maximum fund balance of 1% each, bringing the full Reserve Policy to a total of 23% of the City’s annual operating expenditures. Any Excess Available General Fund Balance above 23% would be brought back to the City Council each year for consideration and options of how to appropriate funds.

ALTERNATIVES:

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

1. Adopt a Resolution updating the Fund Balance and Reserve Policy;

2. Modify as appropriate the Fund Balance and Reserve Policy; or

3. Provide other direction to staff.

ADVANTAGES:

The last update to the Fund Balance and Reserve Policy was more than thirteen years ago. The proposed changes align the GFOA best practices and continue to improve the City’s ongoing commitment to responsible stewardship and transparency of public funds.

DISADVANTAGES:

There are no disadvantages in relation to the recommended action.

ENVIRONMENTAL REVIEW:

Adopting a resolution updating the Fund Balance and Reserve Policy 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)- (3), 15378.) PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE UPDATING THE FUND BALANCE

AND RESERVE POLICY
WHEREAS, the Governmental Accounting Standards Board (“GASB”) released Statement No. 54 - “Fund Balance Reporting and Governmental Fund Type Definitions” on March 11, 2009. The objective of the Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications and by clarifying governmental fund type definitions; and
WHEREAS, the City Council has expressed a desire to update the established Fund Balance and Reserve Policy for the General Fund that promotes responsible financial management by adhering to best budget practices and Generally Accepted Accounting Principles (GAAP); and
WHEREAS, by maintaining sufficient fund balances and reserves, the City will be well positioned to provide financial security and continued delivery of services, withstand economic downturns and other financial stressors such as a natural disaster or emergency, promote stable tax rates and fees, protect the city’s credit worthiness and bond rating, respond to opportunities, and consider long-term financial needs; and WHEREAS, adopting a resolution updating the Fund Balance and Reserve Policy 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, Cal. Code Regs., tit. 14, §§ 15060, subd. (c)(2)- (3), 15378.); and
WHEREAS, the policy will establish a target threshold for the unassigned General Fund balance, provide requirements to replenish the depleted reserves, and guidelines by which surpluses may be spent; and
WHEREAS, the City Council desires to update the Fund Balance and Reserve Policy at this time.

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

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

2. The Fund Balance and Reserve Policy attached to this Resolution and marked as Exhibit A, is hereby incorporated herein by this reference. The Fund Balance and Reserve Policy shall become effective concurrently with the adoption of this

RESOLUTION NO.

PAGE 2
Resolution.

3. The City Council finds that the Fund Balance and Reserve Policy is reasonable and necessary to ensure the City is prepared in times of financial difficulties to continue to provide vital services to its residents.

4. The City Council further finds the types of reserve funds and the amounts to be funded within each fund described in the Fund Balance and Reserve Policy are reasonable and necessary to meet the City’s financial planning needs.

5. The City Council may amend the Fund Balance and Reserve Policy from time to time as may be necessary.

6. This Resolution shall become effective immediately upon its adoption.

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 11th day of June, 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
Fund Balance and Reserve Policy

INTRODUCTION
The purpose of this document is to state the policy goals of the City of Arroyo Grandes’ General Fund reserves, and the budgeting practices that maintain such reserves. Although there is no formula that defines a completely adequate Fund Balance, a conservative approach should enable the City to finance its operations and meet unplanned expenditures without having to incur short-term debt or raise new revenues.

These policies are intended to provide guidelines for budget decisions as to the appropriate use of General Fund resources and the maintenance of adequate reserves for contingencies, emergencies, capital improvements, and other such uses as determined by the City Council. After amounts projected to be available from the year-end fund balance of the General Fund are allocated to Assigned categories, the remaining amount, referred to as the Unassigned Fund Balance, will be reserved for contingencies as further set forth below.

PURPOSE
The purpose of the Fund Balance and Reserve Policy is to ensure strong fiscal management to guide the City of Arroyo Grande’s financial planning, while continuing to provide services to the residents of the City. Additionally, the policy will: aide in reducing financial impacts of temporary revenue short falls and unpredicted one-time expenditures, such as disasters or catastrophic events; assist the City in responding to challenges of a changing economic environment; and preserve adequate reserve levels to improve or maintain the City’s credit worthiness. The Fund Balance and Reserve Policy establishes the appropriate level of reserves in the Consolidated General Fund. The policy sets conditions warranting the use of reserves and outlines the plan to replenish them if the balances fall below the levels established in this policy.

BACKGROUND
Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, was implemented in FY 2010-11 with the intent of improving financial reporting by providing fund balance categories that will be more easily understood. The categories are more clearly defined to make the nature and extent of the constraints placed on a government’s fund balance more transparent. This Fund Balance and Reserve Policy establishes the procedures for reporting unrestricted fund balance in the financial statements. The policy also authorizes and directs the Administrative Services Director to prepare financial reports which accurately categorize fund balance as per GASB Statement No. 54.

RESOLUTION NO.

PAGE 5
Fund Balance and Reserve Policy
POLICY
Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent.  Non-spendable fund balance: Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.  Restricted fund balance: To be used for specific purposes stipulated by external resource providers, constitution, or through enabling legislation.  Committed fund balance: To be used for specific purposes as established by City Council.  Assigned fund balance: Amounts intended for a specific purpose as authorized by the City Manager, but are neither restricted nor committed.
 Unassigned fund balance: The residual amount not contained in the other classifications. The first two components listed above, non-spendable and restricted fund balances, are not addressed in this policy due to the nature of the restrictions. Examples of non-spendable fund balance include prepaid expenses, loan receivables, and inventory. Restricted fund balance is either imposed by laws or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focused on financial reporting of unrestricted fund balance, which is the last three components listed above. These three components are further defined below.

These funds may be pooled for investment earning purposes only and interest earned shall be credited to each individual fund based upon the proportionate share of the revenues invested.

Committed Fund Balance
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Five types of committed reserves are set aside by the City including Operating Reserve, Pension and Other Post-Employment Benefits Reserve, Information Technology Reserve, Fleet Replacement Reserve, and Facility Repairs Reserve. The intended use of each reserve and the Fund(s) in which they are held is outlined below. To develop the appropriate amount of reserves, the City considered guidance from the Government Finance Officers Association (GFOA), as well as the current economic conditions and needs of the City. Reserve balances will be reviewed at the end of each fiscal year to ensure compliance with this Policy.

RESOLUTION NO.

PAGE 6
Fund Balance and Reserve Policy
 Operating Reserve – The GFOA recommends that general-purpose governments maintain reserves in the general fund of no less than two months (16.67%) of annual general fund operating revenues or annual general fund operating expenditures. The City has established an Operating Reserve in the Consolidated General Fund to mitigate financial and service delivery risk due to unexpected revenue shortfalls or unanticipated critical expenditures. The purpose of this reserve is to provide budgetary stabilization and not to serve as an alternative funding source for new programs and ongoing operating expenditures. It is for one-time needs and expenditures identified in the budget and not ongoing structural challenges. The City will aim to maintain a minimum balance in the Operating Reserves equal to approximately 15%, with a goal of 20% of the City’s annual operating expenditures.
 Pension and Other Post-Employment Benefits Reserve – Funds set aside under this reserve in the Consolidated General Fund to be used to further mitigate costs associated with pensions and other post-employment benefits. These funds will be used: as a funding source for potential additional discretionary payments to pay down unfunded liability; or held in the reserve account; or placed in a City Council approved trust instrument. Funds may be used for such purposes as a supplemental funding source for unanticipated increases to the annual pension and/or other post-employment benefit costs resulting from future actuarial assumptions and investment market volatility, or to make the City’s annual payments during times of economic uncertainty as brought on by such circumstances as a recession resulting in funding gaps.  Information Technology Reserve – This fund, established in the Consolidated General Fund, provides for information system and technology projects including communications systems, hardware, and software, which are capital in nature. Technology can change rapidly within the information systems sphere and often comes at a large cost. This reserve helps the City keep pace with changes in information technology and take advantage of improvement/efficiency opportunities in this area. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures.
 Fleet Replacement Reserve – The City will maintain a Fleet Replacement Reserve in the Consolidated General Fund to provide for the timely replacement of existing vehicles should they come to the end of their useful life or become inoperable. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures.  Facility Repairs Reserve – This reserve is set up in the Consolidated General Fund to address any unforeseen maintenance and repairs or planned replacements within City owned facilities. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures.

RESOLUTION NO.

PAGE 7
Fund Balance and Reserve Policy
Assigned Fund Balance
Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy herby delegates the authority to assign amounts to be used for specific purposes to the City Manager or designee for the purpose of reporting these amounts in the annual financial statements. Examples of assigned fund balance include:
 Encumbered Fund balance levels must be sufficient to meet funding requirements for materials or services ordered, but not received, before the end of the fiscal year.  Continuing Appropriations Fund balance levels must be sufficient to meet funding requirements for projects approved in prior years and which must be carried forward into the new fiscal year.  Other Designations Assigned fund balance can also include amounts designated for certain programs, additional reduction of debt, special events, or other non-recurring expenditure needs of the City.

Unassigned Fund Balance
Unassigned fund balance is the residual positive net resources in excess of what can properly be classified in one of the other four categories. The Consolidated General Fund is the only fund that may report a positive (surplus) unassigned balance. Conversely, any governmental fund in a negative (deficit) position could report a negative amount of unassigned fund balance.

Fund Balance Classification
The accounting policies of the City consider restricted fund balance to have been spent first when the expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available.

Similarly, when the expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and the unassigned amounts.

Surplus
Since a surplus of unassigned fund balance does not represent a recurring source of revenue, it shall not be used to fund a recurring expense; however, the surplus may be appropriated for use to fund a onetime expenditure or use not already funded through an appropriation. If it is determined there is an operating surplus, the City Council may appropriate funds for the following nonrecurring purposes, listed in order of priority:

RESOLUTION NO.

PAGE 8
Fund Balance and Reserve Policy
 Surplus funds may be used to meet the minimum Operating Reserve requirement;  Any surplus may be transferred to reduce the unfunded pension liability and/or any other unfunded postemployment benefit liabilities;
 If there is short-term debt within the General Fund, the surplus may be applied to reduce, or eliminate, the debt if determined to be advantageous for the City. If a borrowing is scheduled, the surplus may be used to reduce the principal amount the City needs to obtain if determined to be advantageous for the City; and
 Surplus funds may be used for capital improvements and equipment purchases that are not financed with borrowings or other contributions.

Replenishment of Reserves
If the Operating Reserve balance established in this policy falls below the minimum required level, the City shall strive to restore it to the minimum required balance by any feasible means, including, but not limited to, adopting a budgetary surplus; applying any cost savings, over-realized revenues, and/or surpluses realized within the applicable fund.

If the Information Technology Reserve, Fleet Replacement Reserve, or Facility Repairs Reserve fall below the 1.0% of annual Consolidated General Fund operating expenditures, the levels will be replenished when surplus funds become available.

These guidelines may be suspended, in whole or part, if financial or economic circumstances prevent meeting any or all of the timelines. These policy guidelines may also be amended by action of the City Council from time to time.

This policy is instituted to provide a measure of protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or procedure supersedes the authority and provisions of this policy.

Enterprise Fund Reserves
Reserves for Enterprise Funds – Water and Wastewater (Sewer): Revenues contained in these funds are restricted and may only be used for their described purposes below. In no event will these funds be used to fund general fund services.
 Operating Reserve – The purpose of the Enterprise Fund Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue

RESOLUTION NO.

PAGE 9
should there be significant events that impact cash flows. The target balance to be maintained is 90 days (25 percent) of the current annual operating expense budget.  Capital Reserve – The purpose of the Enterprise Fund Capital Reserve is to fund future replacement of assets and CIP projects. The Capital reserves are used to fund the construction of the projects as the projects progress and the funds are expended. The reserve target has been established at $500,000 each for the water and wastewater systems through prior cost of service studies.
 Lopez Fund Reserve – The Enterprise Fund Lopez Fund accounts for the revenue and expenditures of the surface water purchases from the County. Revenues are collected through the water rates in sufficient amounts to provide for a transfer of revenue to meet the expenses in the Lopez Fund. A reserve is maintained in the fund at least equal to annual Lopez debt service.

1 Item 9.e.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
May 14, 2024, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Ray Russom, Council Member Barneich, Council Member George, Council
Member Secrest, Mayor Pro Tem Guthrie
(virtually)
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, Community Development
Director Brian Pedrotti, City Engineer
Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________

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

2. ROLL CALL
City Clerk Matson stated that Mayor Pro Tem Guthrie is participating remotely in accordance with AB 2449 regulations.

Mayor Pro Tem Guthrie made a statement that he is attending virtually under AB 2449 "just cause" provision as he is traveling for official City business in Cincinnati, Ohio and that no other adults were in the room.

City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

2 Item 9.e.

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

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring May 2024 as "National Foster Care Awareness Month" Mayor Ray Russom read the Honorary Proclamation Declaring May 2024 as "National Foster Care Awareness Month". Julie Kadis, Department of Social Services and Lilly Green-Williams, accepted the proclamation.

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

No action was taken on this item.

6.b Honorary Proclamation Declaring May 2024 as "ALS Awareness Month" Mayor Ray Russom read the Honorary Proclamation Declaring May 2024 as "ALS Awareness Month".

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

No action was taken on this item.

6.c Honorary Proclamation Declaring May 19-25, 2024 as "National Travel and Tourism Week" Mayor Ray Russom read the Honorary Proclamation Declaring May 19-25, 2024 as "National Travel and Tourism Week". Matt Halvorson, Visit SLO Cal, accepted the proclamation.

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

No action was taken on this item.

6.d City Manager Communications
City Manager Downing announced that there was a major water line break at the intersection of Fair Oaks and Valley Road over the weekend and crews were able to repair the waterline and thanked staff; the Branch Street closure for digouts and slurry seal project; crews are mobilizing for the Swinging Bridge Project; the Peace Officer Memorial event will take place on Thursday and closure of City Hall 10-11 a.m.; and answered questions from Council.

No action was taken on this item.

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

3 Item 9.e.

7. CITY COUNCIL REPORTS
None.

Reports are made during the Second Council Meeting each month.

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public were Garry Schmidt, Brenda Auer, Gaea Powell, Michael Punsalon, Shannon Kessler, and Darcy Cole. No further comments were received.

City Attorney Rosen responded to questions from the public. Mayor Ray Russom asked that staff provide information to the speaker regarding the Verizon cell tower.

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

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

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

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

9.a Consideration of Cash Disbursement Ratification
Reviewed and ratify the listing of cash disbursements for the period of April 1 through April 15, 2024.

9.b Consideration of Statement of Investment Deposits
Received and filed 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 Considered, received, and filed 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
Approved 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

4 Item 9.e.
1) Adopted Resolutions entitled: "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"; "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"; and "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"; and 2) Determined 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 Authorized 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
Community Development Director Pedrotti presented the item. Director Pedrotti and City Attorney Rosen responded to questions from Council.

Mayor Ray Russom opened the public hearing. Speaking from the public were Cindy Blankenburg, and Shirley Horacek. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. City Attorney Rosen and Director Pedrotti responded to questions from the public.

Moved by Council Member George
Seconded by Council Member Secrest
1) Introduce an Ordinance entitled: "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";
2) Adopt a Resolution entitled: "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"; 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).

5 Item 9.e.

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

11. OLD BUSINESS

11.a Water Supply Evaluation, Central Coast Blue Member Agency Status Update, and Requested Direction
City Manager Downing introduced the item and commented on the Grover Beach City Council action on May 13, 2024. City Engineer Sweeney presented. City Engineer Sweeney, Administrative Services Director Valentine, and City Manager Downing responded to questions from Council.

Mayor Ray Russom opened public comment. Speaking from the public were Pamela Storton, Alexandria Davis, Brenda Auer. Upon hearing no further public comments, Mayor Ray Russom closed public comment. City Manager Downing responded to questions from the public.

Council discussion ensued regarding withdrawing from the Central Coast Blue (CCB) Project and the CCB Regional Recycled Water JPA; deferring a State water ballot measure; looking into other recycled water projects; and continuing to work with regional partners.

Moved by Council Member George
Seconded by Council Member Barneich
Approve staff's recommendation to 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.

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

12. NEW BUSINESS
Mayor Ray Russom called for a brief break at 7:35 p.m. The Council reconvened at 7:39 p.m.

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 City Manager Downing introduced the item, and Administrative Services Director Valentine presented. City Manager Downing commented on staff's recommendation and responded to questions from Council.

Mayor Ray Russom invited public comment. Speaking from the public were Jon Hoffman, and Alexandria Davis. No further public comments were received.

6 Item 9.e.

Council discussion ensued regarding financing options including placing a 1% sales tax measure on the November 5, 2024 ballot; the addition of a sunset clause in the ballot language; and a citizens oversight committee.

City Manager Downing commented on the California Business Roundtable initiative as it relates to sunset clauses.

Administrative Services Director Valentine provided information regarding financing options.

Moved by Council Member George
Seconded by Mayor Ray Russom
Direct 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 with a 10-year sunset clause on the November 5, 2024 ballot.

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

13. COUNCIL COMMUNICATIONS
Council Member George stated that a presentation regarding the State of Youth Mental Health will be held in Arroyo Grande on May 22nd.

Mayor Ray Russom thanked the Rotary Clubs of Arroyo Grande and Pismo Beach for funding the redwood tree lighting, which is lighted blue and gold in appreciation to the Rotary Clubs.

Council Member Secrest stated that she attended the We Heart AG event; Public Service Employee Recognition Lunch; Redwood Tree Lighting event, and GALA Evening of Action event where she presented a Proclamation for Pride Month on behalf of the City Council.

14. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 8:41 pm.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk

1 ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
May 28, 2024, 5:00 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, Community Development
Director Brian Pedrotti, City Engineer
Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format.

CLOSED SESSION MEETING 5:00 P.M.:

1. CALL TO ORDER
Mayor Ray Russom called the meeting to order at 5:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

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

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Mayor Ray Russom invited public comment. No comments were received.

5. CLOSED SESSION
City Attorney Rosen announced that the City Council will recess to a closed session for the following and

2 will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957:

Title: City Attorney
The City Council adjourned to Closed Session at 5:01 p.m.

6. ADJOURNMENT
The City Council adjourned Closed Session at 5:53 p.m.

REGULAR MEETING 6:00 P.M.
_____________________________________________________________________

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

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW
Council Member George requested Item 10.a. be moved after Item 12.b. and Item 13 after Item 8.

Council concurred.

5.a Closed Session Announcements
City Attorney Rosen announced that there was no reportable action from the following meeting:

May 28, 2024
a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957:

Title: City Attorney

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

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring June 2024 as "Pride Month" Mayor Ray Russom read the Honorary Proclamation Declaring June 2024 as "Pride Month". Val Jones, GALA Pride & Diversity Center, accepted the proclamation.

No action was taken on this item.

6.b Honorary Proclamation Declaring June 7, 2024 as "Hunger Awareness Day" Mayor Ray Russom read the Honorary Proclamation Declaring June 7, 2024 as "Hunger Awareness Day". Andrea Kisler, SLO Food Bank, accepted the proclamation.

No action was taken on this item.

6.c City Manager Communications
City Manager Downing provided information regarding the slurry seal and striping project in the Village; AGPD assistance in responding to the incident in Grover Beach; Spring issue of Arroyo Grande Gazette; and the Art in the Park event on June 8th.

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)

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 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 Patty Welsh, Jeff Chambers, Gaea Powell, Michael Punsalon, Shannon Kesler, Victor, Garry Schmidt. No further public comments were received.

Community Development Director Pedrotti and City Manager Downing responded to questions from the public.

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

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

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

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

5 9.a Consideration of Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of April 16 through April 30, 2024.

9.b Resolutions for the 2024 General Municipal Election for the Election of Certain Officers of the City
1) Adopted a entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE, CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE ELECTION OF

CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES"; 2) Adopted a entitled: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA,

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE"; and 3) Adopted a entitled: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA,

ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO

CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024".

9.c Consideration of Engineer’s Reports and Resolutions Declaring the City’s Intention to Levy and Collect Assessments
1) Approved the Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1, within Tract 1769, for FY 2024-25;
2) Adopted Resolutions entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED TO THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR FISCAL YEAR 2024-2025"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED TO THE GRACE LANE ASSESSMENT DISTRICT FOR FISCAL YEAR 2024-2025"; and "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED TO THE ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL YEAR 2024-2025". 3) Set a public hearing for June 25, 2024, at 6:00 p.m. for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1, within Tract 1769, to consider levying the property assessments; and 4) Made findings that the is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines, § 15302.)

6 9.d Consider Four-Year Agreement with the California Department of Corrections and Rehabilitation for Use of Inmate Work Crews
Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING THE EXECUTION OF AN AGREEMENT WITH THE

CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILITATION FOR INMATE COMMUNITY SERVICE WORK CREWS".

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

9.f Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Public Art
1) Adopted an Ordinance entitled: "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"; and
2) Found that the Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3).

10. PUBLIC HEARINGS

10.a Continued Public Hearing to Consider a Resolution Denying the Installation of One (1) Domestic Well on Property Zoned Planned Development (PD); Applicant – Michael Harris; Representative – Richard Burde, SLO Civil Design
This Item was heard after Item 12.b.

Council Member George recused herself due to the location of her residence being within 500 feet of the project and left the meeting.

Mayor Ray Russom read a statement recusing herself and left the meeting.

Mayor Ray Russom called for a brief break at 8:06 p.m. The Council reconvened at 8:12 p.m.

Mayor Pro Tem Guthrie presided.

Community Development Director Pedrotti presented the item. Director Pedrotti, Assistant City Manager/Public Works Director Robeson, and City Manager Downing responded to questions from Council.

Mayor Pro Tem Guthrie and Council Member Secrest disclosed ex parte communications with the applicant.

Michael Harris, applicant, presented and responded to questions from Council.

Mayor Pro Tem Guthrie opened the public hearing. Speaking from the public were No Name Provided, Shannon Kesler, Charlotte. Upon hearing no further public comments, Mayor Pro Tem Guthrie closed the public hearing. Mayor Pro Tem Guthrie and Council Member Secrest responded to questions from the public.

7 Director Pedrotti and City Manager Downing responded to questions from Council regarding the proposed alternative resolution approving the domestic well, with conditions.

City Attorney Rosen responded to comments from the applicant. Director Pedrotti responded to questions from Council.

Moved by Council Member Secrest
Seconded by Mayor Pro Tem Guthrie
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE INSTALLATION OF ONE (1) NEW DOMESTIC SUPPLY WELL ON PROPERTY ZONED PLANNED DEVELOPMENT; LOCATED NORTHEAST OF THE INTERSECTION OF NOYES ROAD AND EQUESTRIAN WAY (APN:
007-781-055); APPLIED FOR BY MICHAEL HARRIS, AND FINDING THAT THIS ACTION IS EXEMPT FROM CEQA"; and
2) Determined that the installation of a domestic water well is categorically exempt from CEQA under the Class 3 exemption, which applies to the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. (State CEQA Guidelines, § 15303.).

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

11. OLD BUSINESS
None.

12. NEW BUSINESS

12.a Consider Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 5, 2024 Ballot
This item was heard after Item 9.

City Manager Downing presented the item and responded to questions from Council.

Council Member George recommended Council Member Secrest and Mayor Pro Tem Guthrie for appointment to the ad-hoc committee.

Mayor Ray Russom invited public comment. Speaking from the public were Shannon Kesler, Keith Storton, and Gaea Powell. No further public comments were received.

City Council discussion ensued regarding appointments to the ad-hoc committee and support of staff's recommendations.

Moved by Council Member George
Seconded by Council Member Barneich

8 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE, CALIFORNIA CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE NOVEMBER 5, 2024 GENERAL MUNICIPAL

ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN ORDINANCE TO

ENACT A GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF ONE CENT (1¢)";
2) Adopted a proposed Ordinance entitled: "AN ORDINANCE OF THE PEOPLE OF THE CITY OF ARROYO GRANDE, CALIFORNIA, ADDING CHAPTER 3.26 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE TO ENACT A ONE PERCENT (1%) GENERAL

TRANSACTIONS AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION";
3) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE, CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND

REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION";
4) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF SAN LUIS OBISPO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO §10403 OF THE ELECTIONS CODE"; 5) Appointed Council Member Secrest and Mayor Pro Tem Guthrie to serve on an ad-hoc committee for creation of the argument to be submitted in favor of the measure; and 6) Determined that adopting the Resolutions and Ordinance relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).

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

12.b Discussion and Consideration of Approval of the Fiscal Year (FY) 2024-25 Mid-Cycle Budget Update Report
Administrative Services Director Valentine presented the item and responded to questions from Council.

Mayor Ray Russom invited public comment. Speaking from the public was Alexandria Davis. No further public comments were received. Assistant City Manager/Public Works Director Robeson responded to questions from the public.

9 City Council discussion ensued regarding spending down reserves and staff's budget requests.

Mayor Pro Tem Guthrie requested the Council consider the two items separately. Administrative Services Director Valentine and City Manager Downing responded to questions from Council.

Moved by Mayor Pro Tem Guthrie
Seconded by Council Member George
Directed staff to implement the recommendation of a policy that establishes three additional reserves: Information and Technology Reserve, Fleet Replacement Reserve and Facility Repairs Reserve; with the excess reserves, over 20%, that are expected to be available at the end of the Fiscal Year.

AYES (5): Mayor Pro Tem Guthrie, Council Member George, Council Member Barneich, Council Member Secrest, and Mayor Ray Russom
Passed (5 to 0)
Moved by Council Member Barneich
Seconded by Council Member George
Approve staff recommendations on the preliminary Fiscal Year 24-25 mid-cycle budget.

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

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

Council Member Secrest noted that she attended the Youth Mental Health Symposium and stated resources are available to youth and training for those who are 18+.

Council Member George commented on the Center for Child Adolescent Mental Health programming; the 2nd Annual State of Youth Mental Health Program; and commented that support is needed from the education system; and the student's report will be published in June.

Mayor Ray Russom commented on the Mills Act in place at the City and requested that the Council consider directing staff to agendize a discussion as part of the General Plan Update process. Council Member Barneich concurred.

Mayor Ray Russom also commented on the flag at Fireman's Park and requested staff check on all flags at City facilities to see if they need to be updated.

14. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 9:08 p.m.

10 _________________________
Caren Ray Russom, Mayor
_________________________
Jessica Matson, City Clerk

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
SUBJECT: Amendments to the Central Coast Blue Regional Recycled Water Authority Joint Exercise of Powers Agreement
DATE: June 11, 2024
RECOMMENDATION:
1) Adopt a Resolution approving Amendment Number 1 to the Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority; and 2) Determine that adopting the Resolution is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no direct fiscal impact associated with the recommended action. If the amendment is approved by all necessary parties, the City would be reimbursed its respective share of the purchase price of real property obtained for purposes of the Central Coast Blue Project (“Project”), calculated as the sum of $499,855.34.

BACKGROUND:

The Cities of Arroyo Grande, Grover Beach, and Pismo Beach (“Member Agencies”) entered into a Joint Exercise of Powers Agreement (“Agreement”) in October 2022, which included provisions to govern the development and management of the Project and the Central Coast Blue Regional Recycled Water Authority (“Authority”).

On April 9, 2024, the City Council directed staff to submit formal notices of intent to withdraw from the Agreement, as well as from the related Cost-Sharing Agreement.

Pursuant to Section 8.2 of the Agreement (Attachment 2), withdrawal is effective one hundred eighty (180) days after written notice is provided to the Authority. Under the Agreement, withdrawal from the Authority constitutes a withdrawal of that member agency’s representative from the Board of Directors.

On June 3, 2024, the Authority Board of Directors voted unanimously to provide a recommendation to the Member Agencies to amend the Agreement as outlined below. At

Item 9.f.

City Council
Amendments to the Central Coast Blue Regional Recycled Water Authority Joint Exercise of Powers Agreement
June 11, 2024

the same meeting, the Board of Directors acknowledged and accepted the City’s notice of intent to withdraw from the Agreement effective June 30, 2024, and waived the 180- day notice requirement, contingent upon the approval of the proposed amendments by all three Member Agencies. Amendments to the Agreement are specifically addressed in Article 8 – Termination / Withdrawal / Amendment of the Agreement as follows:

8.5 Amendment. This Agreement may be amended at any time by the written approval of the governing body of each Member Agency upon recommendation of a majority of the Board of Directors of the Authority.

ANALYSIS OF ISSUES:

The City of Pismo Beach has expressed its interest in continuing the existence of the Authority to preserve the previous investment in the Authority and the opportunity to develop the Project notwithstanding the withdrawal of the City and the City of Grover Beach from the Authority. To that end, Pismo Beach has requested an amendment to the Agreement that would accomplish a number of matters, generally outlined as follows:

1. The Agreement would be amended to remove the cities of Arroyo Grande and Grover Beach as Member Agencies, and to add the Pismo Beach Financing Agency as a Member Agency;

2. The Agreement would be amended to change the Water Purveyor Contributions to reflect the withdrawal of Arroyo Grande and Grover Beach, and setting the allocation of costs at 100% for Pismo Beach;

3. The Agreement would be amended to remove the restriction prohibiting the Authority’s attorney from being counsel to one of the Member Agencies;

4. The Agreement would be amended to remove the provision that Arroyo Grande and Grover Beach would participate in the division of remaining assets upon the dissolution of the Authority at some undetermined point in the future, and to authorize the reimbursement of Arroyo Grande and Grover Beach for their respective shares of the purchase price of real property acquired for the Project; and

5. Other conforming changes would be made to the Agreement to reflect the withdrawal of Arroyo Grande and Grover Beach and the addition of the Pismo Beach Public Financing Agency.

ALTERNATIVES:

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

1. Adopt a Resolution approving Amendment Number 1 to the Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recyceld Water Authority;

2. Modify and adopt the Resolution; or

3. Provide other direction to staff.

Item 9.f.

City Council
Amendments to the Central Coast Blue Regional Recycled Water Authority Joint Exercise of Powers Agreement
June 11, 2024

ADVANTAGES:

The proposed amendments remove the City from the Agreement and Authority prior to the 180-day notice requirement and minimizes Authority administration costs as the City departs. The amendments also preserve the Authority as a tool for current and future financing, as well as providing a structure for future regional water supply solutions as desired by the City Council.

DISADVANTAGES:

Due to the requirement for amendments to the Agreement to be approved by the governing body of each Member Agency, any Member Agency’s failure to approve the proposed amendments would preclude the City’s withdrawal from the Authority prior to the 180-day noticing period. This would require the City to remain in the Authority until November 13, 2024, and the City would be responsible for Project costs during this time period. Additionally, not allowing the Pismo Beach Financing Agency to join the Authority would effectively eliminate the joint powers agreement structure, triggering dissolution of the Agreement and associated actions, including property disposition under State law.

ENVIRONMENTAL REVIEW:

The action is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed Resolution

2. Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AMENDMENT NUMBER
1 TO THE JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CENTRAL COAST BLUE REGIONAL

RECYCLED WATER AUTHORITY
WHEREAS, the City of Arroyo Grande, along with the Cities of Grover Beach and Pismo Beach, is a “Member Agency” of the Central Coast Blue Regional Recycled Water Authority (“Authority”), created pursuant to the joint exercise of powers agreement (“Agreement”) between the Member Agencies to govern participation in the Central Coast Blue Project; and
WHEREAS, the City wishes to amend the Agreement to reflect the withdrawal of Arroyo Grande and Grover Beach from the Authority, effective June 30, 2024; and WHEREAS, the City wishes to amend the Agreement to reflect the addition of the Pismo Beach Public Financing Agency as a member agency under the Agreement, effective June 30, 2024; and
WHEREAS, the City wishes to amend the Agreement to make all necessary changes related to the withdrawal of Arroyo Grande and Grover Beach, as agreed upon by the Member Agencies, including, but not limited to, the provisions related to financing the Authority and reimbursing withdrawing Member Agencies for contributions to Authority property; and
WHEREAS, Section 8.5 of the Agreement requires that any amendment to the Agreement be approved by the governing body of each Member Agency upon recommendation of the Board of Directors of the Authority, which recommendation was given on June 3, 2024; and
WHEREAS, this action is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby approves Amendment Number 1, incorporated herein as Exhibit A, to the Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority.

RESOLUTION NO.

PAGE 2
On the 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 11th day of June 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

AMENDMENT NUMBER 1

TO JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CENTRAL COAST BLUE

REGIONAL RECYCLED WATER AUTHORITY
This Amendment Number 1 to Joint Exercise of Powers Agreement Creating the Central Coast Blue Regional Recycled Water Authority (“First Amendment”) is effective as of June 30, 2024 (the “Effective Date”).

WHEREAS, the Cities of Arroyo Grande, Grover Beach and Pismo Beach (each a “Member Agency” and collectively the “Member Agencies”) entered into a joint exercise of powers agreement (“Agreement”) for the Member Agencies’ participation in the Central Coast Blue Project, which established the Central Coast Blue Regional Recycled Water Authority (“Authority”); and
WHEREAS, the Parties wish to amend the Agreement to reflect the withdrawal of Arroyo Grande and Grover Beach effective June 30, 2024; and
WHEREAS, the Parties wish to amend the Agreement with this First Amendment to reflect the addition of the Pismo Beach Public Financing Agency as a member agency under the Agreement effective June 30, 2024; and
WHEREAS, Section 8.5 of the Agreement requires that any amendment to the Agreement be approved by the governing body of each Member Agency upon recommendation of the Board of Directors of the Authority, which recommendation was given on June 3, 2024.

NOW, THEREFORE, Arroyo Grande, Grover Beach and Pismo Beach hereto agree as follows:

1. Section 1.1.9 is revised to read as follows:
“Construction Costs shall mean the cost incurred as of the effective date of the first construction contract for Phase 1 of the Project through the determination by the Parties that construction of Phase 1 is complete, including the cost of the purchase of the Facility site for the Project. Construction Cost does not include legal expenses attributable to each Party’s City Attorney, retained counsel or their associates.”

2. Section 1.1.13 is revised to read as follows:

Facility Site is defined in Section 1.5.2 herein.

3. Section 1.1.16 is revised to read as follows:
“Member Agency(ies) means Pismo Beach, the Pismo Beach Public Financing Agency, and any other entity added to this Agreement by subsequent amendment.”

4. The first sentence of Section 1.2 is revised to read as follows:

EXHIBIT "A"

“This Agreement is made pursuant to the Act by Pismo Beach and the Pismo Beach Public Financing Agency, each of which is authorized to contract with the other pursuant hereto.”

5. Section 1.5.1 is revised to read as follows:

Phase 1 of Project. Pismo Beach will be Lead Agency and act as project developer through final completion of Phase 1 of the Project. As the Lead Agency, Pismo Beach will act as the construction manager for Phase 1 and will provide administration of construction and start-up of Phase 1 on behalf of the Member Agencies. The Parties shall pay their pro rata shares of PreConstruction costs for any professional service expenses incurred by Pismo Beach in connection with obtaining such Phase 1 approvals, in accordance with Section 6.3.2 below.

6. Section 1.5.2 is revised to read as follows:
“Pismo Beach has previously transferred to the Authority Facility Parcel #1, which is located in Grover Beach and identified as Assessor's Parcel Number 060-543-016. Prior to June 30, 2024, Grover Beach shall complete the transfer to the Authority of Facility Parcel #2, which is located in Grover Beach and identified as Assessor’s Parcel Number 060-543-007 (collectively Facility Parcels #1 and #2 are referred to as the "Facility Site").” The Authority shall own all Facilities located at the Facility Site, including, but not limited to, the real property, buildings, water and treatment facilities, and support infrastructure and assets, injection wells and related transmission lines.”

7. Section 1.5.4 is revised to read as follows:
“To finance Construction Costs, the Authority shall apply for and obtain financing for such costs through the issuance of Bonds, entering into loans or Financing Agreements or any other financing mechanisms not otherwise covered by grant funding awarded to the Project. Any loans entered into and secured for construction of the Project may consist of separate installment sale agreements based on the respective share of each Member Agency, and any prepayment may be paid either directly to the Authority by each Party consistent with the Water Purveyor Contribution percentages identified in Section 6.3.2 hereof or directly to the grant funding agency or bond trustee, depending on the funding mechanism.”

8. Section 1.6.2(ii) is revised to read as follows:
“To employ agents, attorneys, consultants and employees or to contract for personnel to fulfill its mission and purpose.”

9. Section 2.1 is revised to read as follows:
“Creation. Until such time as additional member agencies are added to this Agreement through amendment under Section 8.5, the Authority shall be governed by a board of two (2) members, which is hereby established and which shall be composed of one (1) representative appointed from each Member

Agency. The governing board shall be known as the "Board of Directors of the Central Coast Blue Regional Recycled Water Authority." All voting power shall reside in the Board.”

10. Section 2.2.1 is revised to add the following sentence at the end of the existing section:
“Any Member Agency which joins the Authority pursuant to an amendment to this Agreement shall designate and appoint a regular and alternate representative in the manner described in this section upon the effective date of such amendment.”

11. Section 4.3 is revised to read as follows:
“Authority Attorney. The Attorney for the Authority shall be engaged by the Board of Directors and may be the attorney for one of the Member Agencies. The Attorney for the Authority or a designated deputy shall attend or participate in meetings of the Board of Directors; provided, however, that the absence of the Authority Attorney shall not affect the validity of any meeting. The Attorney shall perform such other duties the Board of Directors specifies.”

12. The first sentence of Section 6.2.2 is revised to read as follows:
“Annually, in March of each year, the Board shall adopt a preliminary budget and an allocation of contributions from Member Agencies for presentation to each Member Agencies' governing body.”

13. Section 6.3.2 of is revised to read as follows:
“The Parties shall pay their pro rata share of all Pre-Construction and Construction Costs incurred by Pismo Beach in connection with Phase 1 of the Project.

The Parties agree to the following cost allocation of the total Pre-Construction and Construction costs for Phase 1 for each Party:
i. Pismo Beach shall contribute 100%.

As provided in Section 6.2.2, annual contributions by Member Agencies for ongoing operations shall be consistent with the above percentages.

14. The existing second paragraph of Section 7.3 shall be stricken entirely and revised to read as follows:
“The respective obligation of each Party to make payments herein with respect to the Pre- Construction and Construction Costs of Phase 1 or in furtherance of the objective and purpose of this Agreement, is a special, limited obligation payable solely from net revenues of each party’ s respective Enterprise fund(s), and does not constitute a debt or pledge of the faith and credit of each Party or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction. The payments made under this Agreement, if any, are payable from net revenues of each party’s respective

Enterprise fund(s) on such a basis as is dictated by each Party’s existing debt instruments. The respective obligation of each Party to make payments hereunder or in furtherance of the objective and purpose of this Agreement is further subject to the Parties establishing sufficient net revenues to fund the obligations of this Agreement, which includes, but is not limited to, approval by the Parties’ governing bodies for an increase in enterprise user fees sufficient to meet the above obligations of this Agreement, the successful implementation of a Proposition 218 protest hearing wherein the Parties are authorized to proceed with approval of a fee increase, and the attainment of Proposition 1 Groundwater Grant Program Grant Funding by the State Water Resources Control Board.”

15. Section 8.3 is revised to read as follows:
“The withdrawal of a Member Agency shall not terminate its responsibilityꞏ to contribute its share of any obligation incurred by the Authority, including amounts determined by the Board for (1) liabilities and claims accrued during the time the agency was a Member Agency or (2) budgeted expenses for the Fiscal Year in which notice of intent to withdraw is given.
“Except as the withdrawing Member Agency may agree, in writing, with the Board, the withdrawing Member Agency shall automatically relinquish all rights as a Member Agency under this Agreement, on the effective date of the withdrawal. Upon termination of this Agreement, only those Member Agencies who are parties to this Agreement at the time of termination shall be permitted to participate in disbursement of Authority assets. Notwithstanding the foregoing sentence, Arroyo Grande and Grover Beach shall be entitled to reimbursement for their respective shares of the purchase price of Facility Parcel #1 and Facility Parcel #2 as follows: not later than 30 days following full execution of this First Amendment by the Parties, Pismo Beach shall remit to Arroyo Grande the sum of $499,855.34, and to Grover Beach the sum of $719,791.71.

Notwithstanding anything to the contrary set forth in any other agreements among the Parties approving the amendment revising this Section 8.3, and notwithstanding the withdrawal from this Agreement of any Party, the Parties hereto acknowledge and agree that the recycled water injected into the ground pursuant to this Agreement, as well as all new developed water subsequently extracted, is New Developed Water as defined in the January 25, 2008 Judgment entered by the Santa Clara Superior Court in the Santa Maria Groundwater Adjudication litigation.”

16. Section 9.3 shall be revised to delete the last sentence in its entirety, which currently reads:
“This section shall not be deemed to supersede, extinguish, or modify the indemnification provisions in the Cost Sharing Agreement.”

17. Section 10.2 is revised to read as follows:
“Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to the respective Parties, as follows:

City of Pismo Beach
Attention: City Manager
760 Mattie Road Pismo Beach, CA 93449
Pismo Beach Public Financing Agency
Attention: Executive Director
760 Mattie Road Pismo Beach, CA 93449”

18. Section 10.3 is revised to read as follows:
“The responsibilities and obligations of each Party to this Agreement shall be, solely as provided in this Agreement, or as may be provided for in other agreements to be executed by the Parties.”
Except as set forth herein, all other terms and conditions of the Agreement, shall remain in full force and effect.

Dated:________________________ City of Arroyo Grande
_________________________________
Caren Ray Russom, Mayor
Dated:________________________
Attest:

Jessica Matson, City Clerk
City of Grover Beach
_________________________________
Karen Bright, Mayor
Attest:
_________________________________
Wendi Sims, City Clerk

Dated:________________________ City of Pismo Beach
_________________________________
Ed Waage, Mayor
Attest:
_________________________________
Erica Inderlied, City Clerk

A JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CENTRAL COAST BLUE REGIONAL

RECYCLED WATER AUTHORITY
THIS JOINT EXERCISE OF POWERS AGREEMENT ("Agreement") is made and entered into by and between the City of Arroyo Grande, a California municipal corporation ("Arroyo Grande"), the City of Grover Beach, a California municipal corporation ("Grover Beach"), and the City of Pismo Beach, a California municipal corporation ("Pismo Beach"). The cities may be individually referred to herein as a "Party" or collectively as the "Parties."

RECITALS
WHEREAS, each Party to this Agreement is a public agency authorized and empowered to contract for the joint exercise of powers under Articles 1 through 4, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code of the State of California; and WHEREAS, in 1983, the Parties hereto entered into a voluntary groundwater management plan to manage the safe yield of the Arroyo Grande Groundwater Basin, which agreement was updated by the Parties through approval of the 2002 Agreement Regarding Management of the Arroyo Grande Groundwater Basin (the "Management Agreement"); and
WHEREAS, on April 30, 2002, the Parties hereto, among others, entered into a settlement agreement (the "Settlement Agreement") related to a 1997 groundwater adjudication litigation filed by the Santa Maria Valley Water Conservation District, which reaffirmed the Management Agreement, established separate water management areas (the "Original Management Areas") to be independently managed by the Parties and others, and requiring the Parties and others to develop an equitable cost sharing agreement for any newly constructed water resource and water production facilities within the Original Management Areas; and
WHEREAS, on June 30, 2005, the Parties hereto entered into a stipulation imposing a physical solution for ensuring the Arroyo Grande Groundwater Basin's long-term stability (the "Stipulation"). The Stipulation adopted a local management approach, establishing three management areas (the "Current Management Areas") and requiring a monitoring program to be established in each of the Current Management Areas; and
WHEREAS, on January 25, 2008, the Santa Clara Superior Court entered Judgment in the Santa Maria Groundwater Adjudication litigation approving the Stipulation, without qualification (the "Adjudication Decree"); and
WHEREAS, the Parties are participating in the Central Coast Blue Project to construct a regional recycled water project that will enhance supply reliability by injecting advanced purified water into the Northern Cities Management Area of the Santa Maria Groundwater Basin ("Project"). The Project will reduce vulnerability to drought and seawater intrusion by creating a seawater intrusion barrier and supplementing the naturally occurring groundwater; and
WHEREAS, Phase 1 of the Project includes construction of an Advanced Treatment Facility ("ATF"), treatment of secondary treated flows from Pismo Beach's Wastewater Treatment Plant ("WWTP"), construction of approximately five injection wells and associated transmission lines, and injection of flows from the WWTP ("Phase 1 "). Phase 1 proposes to treat wastewater from Pismo Beach to an advanced purification level to create between nine hundred (900) and one thousand (1,000) acre-feet of additional water per year; and

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WHEREAS, Phase 2 of the Project will include upgrades to the ATF to increase capacity, construction of approximately two additional injection wells and associated transmission lines, and injection of flows from the South San Luis Obispo County Sanitation District Wastewater Treatment Plant ("Phase 2"); and WHEREAS, Arroyo Grande, Grover Beach and Pismo Beach believe that the best way to achieve their joint goals in a way that is mutually beneficial is to form a joint powers agency under Articles 1 through 4, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code of the State of California ("Joint Exercise of Powers Act"); and
WHEREAS, by forming a joint powers agency ("JPA'') under the Joint Exercise of Powers Act, the Parties believe they will be better able to, through a separate JP A, oversee and manage the planning and implementation, including but not limited to construction, operation and administration of, the Project.

NOW THEREFORE, in consideration of the above Recitals and of the mutual promises and agreements contained herein, the Parties agree as follows:

ARTICLE 1

GENERAL PROVISIONS

1.1 Definitions. Unless the context otherwise requires, the words and terms defined in this Section

1.1 shall, for the purposes of this Agreement, have the meanings herein specified.

1.1.1. Act means Articles 1 through 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6500) relating to the joint exercise of powers common to public agencies.

1.1.2. Agreement means this Joint Exercise of Powers Agreement.

1.1.3. Ancillary Facilities means injection wells, storage tanks, pump stations, associated piping, and any other equipment located on an Ancillary Facilities Site.

1.1 .4. Ancillary Facilities Sites means any real property or real property interest held by the Authority for purposes of the Project, excluding the Facility Site.

1.1.5. Annual Budget means the budget adopted pursuant to Section 6.2.2 of this Agreement.

1.1.6. Authority means the Central Coast Blue Regional Recycled Water Authority, which is created by this Agreement.

1.1. 7. Board or Board of Directors means the Board of Directors referred to in Article 2 of this Agreement, which is the governing body of the Authority.

1.1.8. Bonds means bonds, notes, commercial paper, and any other evidence of indebtedness of the Authority authorized and issued pursuant to the Act, any indebtedness issued or incurred by the Authority pursuant to any act supplementary to the Act, including, but not limited to, refunding bonds authorized and issued pursuant to Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

1.1. 9. Cost Sharing Agreement means the Cost Sharing Agreement for the Parties' Participation in the Central Coast Blue Project dated March 14, 2022, a copy of which is attached hereto as Exhibit A and incorporated herein.

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1.1.10. Director means a member of the Board appointed to the Board pursuant to Section 2.2 of this Agreement.

1.1.11. Effective Date means the last date on which all Parties to this Agreement have executed the Agreement.

1.1.12. Facility or Facilities means the advanced water treatment facility that will receive and further treat wastewater influent from Pismo Beach's WWTP, in Phase 1, which as of the date of this Agreement is proposed to be constructed on Assessor's Parcel Number 060- 543-016 in the City of Grover Beach, including the Facility's equalization basin, injection wells, storage tanks, pump station and associated piping and equipment from the Pismo Beach.WWTP, but excluding the joint outfall shared by the South San Luis Obispo County Sanitation District and the City of Pismo Beach which both agencies use to discharge their municipal waste.

1.1.13. Facility Site means Assessor's Parcel Number 060-543-016 in the City of Grover Beach, California.

1.1.14. Financing Agreement means any agreement between the Authority and a Member Agency securing the obligation of the Member Agency to make payments relating to Bonds or other obligations issued or incurred by the Authority in connection with the financing of the Facilities or the improvement, use or acquisition of real or personal property that is or will be owned or operated by the Authority, or to refinancing of such previously issued or incurred Bonds or other obligations.

1.1.15. Manager means the manager of the Authority.

1.1.16. Member Agency(ies) means Arroyo Grande, Grover Beach and Pismo Beach and any other entity added to this Agreement by a subsequent amendment.

1.1.17. Member of the Board or Board Member means and includes any duly appointed Director, Chair and/or Vice-Chair of the Board.

1.1.18. Party(ies) means those entities who have executed this Agreement or any Amendment to this Agreement and who have not withdrawn from the Authority.

1.2 Purpose. This Agreement is made pursuant to the Act by Arroyo Grande, Grover Beach and Pismo Beach, each of which is authorized to contract with the other pursuant hereto. The purposes of this Agreement are to create the Authority, provide for the administration of the Authority and to enable the Authority to: (1) take all actions necessary to operate, and maintain Phases 1 and 2 of the Project. Phase 1 includes construction of an ATF, treatment of all secondary treated flows from Pismo Beach's WWTP, construction of approximately five injection wells and associated transmission lines, and injection of flows from the WWTP; and (2) pursue grant funding and financing options for the Project and future projects; and (3) collectively interact with regulatory agencies with oversight over the Parties and the Project.

1.3 Creation of Authority. Pursuant to the Act, there is hereby created a public entity known as the "Central Coast Blue Regional Recycled Water Authority." The Authority shall be a public entity separate and apart from the Member Agencies and shall administer this Agreement.

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1.4 Term. The term of this Agreement shall commence on the Effective Date and shall continue until terminated by the Parties as provided in Article 7 of this Agreement.

1.5 Phase 1, Project Facility Site Ownership, Construction Financing, and Operation

1.5 .1. Phase 1 of Project. As set forth in Article III, Section 1 - Lead Agency Duties of the Cost Sharing Agreement, Pismo Beach will be Lead Agency and act as project developer through final completion of Phase 1 of the Project. As the Lead Agency, Pismo Beach will act as the construction manager for Phase 1 and will provide administration of construction and start-up of Phase 1 on behalf of the Member Agencies. The Parties shall pay their pro rata shares of Pre-Construction costs for any professional service expenses incurred by Pismo Beach in connection with obtaining such Phase 1 approvals, in accordance with Section 6.3.2 below.

1.5.2. Ownership of Facility Sites and Facilities. Pismo Beach has previously purchased the Facility Site, which is located in Grover Beach and identified as Assessor's Parcel Number 060-543-016 ("Facility Site"). Within sixty (60) days of the Effective Date of this Agreement, Pismo Beach shall transfer the Facility Site to the Authority. The Authority shall own all Facilities located at the Facility Sites, including, but not limited to, the real property, buildings, water and treatment facilities, and support infrastructure and assets, injection wells and related transmission lines.

1.5.3. Ownership of Ancillary Facilities Sites and Ancillary Facilities. The Authority shall own all Ancillary Facilities Sites and Ancillary Facilities located thereon.

1.5.4. Financing of Construction Costs. To finance Construction Costs, as defined in the Cost Sharing Agreement, the Authority shall apply for and obtain financing for such costs through the issuance of Bonds, entering into loans or Financing Agreements or any other financing mechanisms not otherwise covered by grant funding awarded to the Project.

Any loans entered into and secured for construction of the Project may consist of separate installment sale agreements based on the respective share of each Member Agency, and any prepayment may be paid either directly to the Authority by each Party consistent with the Water Purveyor Contribution percentages identified in Section 6.3.2 hereof or directly to the grant funding agency or bond trustee, depending on the funding mechanism. In the event that the Authority is not able to finance the Construction Costs as described in this Section 1.5.4, the Parties will seek financing consistent with the financing plan described in Article III, Section l .c of the Cost Sharing Agreement for its respective share of Construction Costs.

1.5.5. Operation and Maintenance of the Facilities. The Authority will have total responsibility for the operation and maintenance of the Facilities.

1.5.6. Procurement Methods. The Board may adopt such policies relating to procurement of services, equipment, supplies and other materials needed to accomplish the purposes of this Agreement.

1.6 Powers of Authority

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1.6.1. General Powers. The Authority shall exercise, in the manner herein provided, the powers which are common to each of the Member Agencies, powers otherwise permitted under the Act, and powers necessary to accomplish the purposes of this Agreement.

1.6.2. Specific Powers. Subject to the limitations set out in Section 1.6.1, the Authority is hereby authorized, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement and to do any or all of the following:

1. To make and enter contracts, including contracts with its Member Agencies; ii. To employ agents, attorneys, consultants and employees or to contract for personnel to fulfill its mission and purpose. The Authority shall not contact employees of the Member Agencies at their current places of employment about employment opportunities with the Authority;
111. To lease, acquire, construct, manage, maintain or operate any building, works or improvements;
1v. To lease, acquire, hold or dispose of real or personal property; v. To acquire and hold property, including funds, Project agreements and other obligations of any kind, and pledge, encumber or assign the same, or the revenues therefrom or any portion of such revenues, or other rights, whether then owned or possessed, or thereafter acquired, for the benefit of the bondholders, and as security or additional security for any bonds or the performance of obligations under an indenture;
v1. To provide for the advance of bond proceeds and other funds pursuant to Project agreements as necessary to pay or reimburse for Project costs; vu. To borrow money and issue Bonds and incur debts, liabilities or obligations for the purpose of paying all or any part of the costs of the Project or for any other authorized purpose, which do not constitute a debt, liability or obligation of any Member Agency;
vm. To receive gifts, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions and donations;
1x. To fix the compensation, if any, paid to the Board of Directors, Secretary, Treasurer, Controller and Attorney, in compliance with all applicable laws; x. To prescribe the duties, compensation and other terms and conditions of employment of other agents, officers and employees;
xi. To adopt reasonable rules and regulations for the conduct of the day-to-day operations of the Authority;

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xu. To apply for, accept, receive and disburse grants, loans and other aid from any agency of the United States of America or of the State of California; xiii. To sue and be sued in its own name;
xiv. To enter into Financing Agreements, state funding agreements and federal funding agreements relating to the Project, and assume rights and obligations pursuant to these agreements;
xv. To invest money in the treasury, pursuant to Government Code Section 6505.5, that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, pursuant to Section 53601 of the Government Code; xvi. To contract and pay compensation for professional, financial, and other services; xvu. To carry out and enforce all provisions of this Agreement;- xviii. To exercise any and all powers which are provided for in the Act and in Government Code section 6584 et seq., including, without limitation, Government Code section 6588, as they exist on the Effective Date of this Agreement or may hereafter be amended;
xix. To exercise any power necessary or incidental to the foregoing powers.

ARTICLE2

BOARD OF DIRECTORS

2.1. Creation. The Authority shall be governed by a board of three (3) members, which is hereby established and which shall be composed of one (1) representative appointed from each Member Agency.

The governing board shall be known as the "Board of Directors of the Central Coast Blue Regional Recycled Water Authority." All voting power shall reside in the Board.

2.2. Members of the Board of Directors.

2.2.1. Directors Appointed. Upon the Effective Date of this Agreement, each Member Agency which has not already done so shall designate and appoint, by resolution or minute order of its governing body, one (1) member of its governing body to act as its representative on the Board of Directors, and one individual to act as an alternate to each Director so appointed. The alternate appointed by each Member Agency shall have the authority to attend, participate in and vote at any meeting of the Board when the regular member is absent.

2.2.2. Membership. Each Director and alternate of the Board of Directors shall serve until a successor is appointed; provided, however, each Director and alternate serves at the pleasure of the appointing Member Agency's governing body and may be removed at any time, with or without cause, at the sole discretion of the appointing Member Agency governing body. If a Director or alternate's membership on the appointing Member Agency's governing body ceases, his or her membership on the Board shall also cease.

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2.2.3. Chair. The Board of Directors shall elect one of its members as Chair of the Board. The term of office for the Chair of the Board shall be one (1) year. The Chair of the Board shall preside at all meetings and shall perform such other duties as are specified by the Board of Directors.

2.2.4. Vice-Chair. The Board of Directors shall elect one of its members as Vice-Chair. The term of office for the Vice-Chair shall be one (1) year. The Vice-Chair shall perform all the duties of the Chair of the Board in the absence of the Chair of the Board or in the event the Chair of the Board is unable to perform such duties, and shall perform such other duties as are specified by the Board of Directors.

2.2.5. Board Compensation. Except for reimbursement for actual costs and expenses, the Board shall serve without compensation from the Authority. Compensation may be provided as approved by the Member Agencies appointing each Director and alternate, and any such compensation will be the responsibility of the Member Agency.

2.2.6. Reimbursement of Costs. Each Board Member is entitled to reimbursement for their travel, meals, lodging and other actual and necessary expenses incurred in the performance of the duties required or authorized by the Board pursuant to Government Code Section 53232.2.

2.3. Powers of the Board. All the power and authority of the Authority shall be exercised by the Board of Directors.

2.4. Provision for Bylaws. The Board may cause to be developed and may adopt, from time to time, such bylaws for the Authority to govern its day-to-day operations. Each Member Agency shall receive a copy of any bylaws developed and adopted under this Section.

ARTICLE3

MEETINGS OF THE BOARD

3.1 Meetings. The Board shall provide for its regular meetings by resolution; provided, however, that at least one regular meeting shall be held each fiscal quarter. The date, hour and place of the regular meetings shall be fixed by resolution of the Board and filed with the governing body of each of the Member Agencies. The Board may meet in joint session with other public agencies and advisory bodies in accordance with State law.

3.2 Ralph M. Brown Act. All meetings of the Board, including, without limitation, regular, adjourned regular, special, adjourned special, and emergency meetings, shall be called, noticed, held, and conducted in accordance with the provisions of the Ralph M. Brown Act, commencing with section 54950 of the Government Code.

3.3 Voting. Each Board Member shall have one vote. Except as otherwise provided by law or by this Agreement, all actions of the Board shall be approved on the affinnative vote of a majority of the Members of the Board.

3.4 Quorum. A majority of the Members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.

3.5 Minutes. The Secretary of the Authority shall cause minutes of regular, adjourned regular, special, adjourned special, and emergency meetings to be kept and shall, as soon as possible after each

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meeting, cause a copy of the minutes to be forwarded to each Member of the Board and to each Member Agency.

3.6 Rules. The Board may adopt from time to time such rules and regulations for the conduct of its affairs as may be required.

ARTICLE4

OFFICERS AND EMPLOYEES OF THE AUTHORITY

4.1 Secretary. The Board of Directors shall appoint a Secretary who shall serve at the pleasure of the Board. The Secretary may, but need not, be a member of the Board of Directors. The Secretary shall be responsible for the minutes and other records of the proceedings of the Board of Directors and shall perform such other duties as the Board of Directors specifies.

4.2 Treasurer and Auditor Controller. Pursuant to Government Code Sections 6505.5 and 6505.6, the Authority's Treasurer and Auditor/Controller shall be the Manager's senior financial officer (such as its chief financial officer, director of finance, or finance manager as designated by the Manager. The Treasurer shall be the depository and have custody of all money of the Authority, from whatever source, and shall have all of the duties and obligations set forth in Sections 6505 and 6505.5 of the Government Code. The offices of Treasurer and Auditor/Controller may be held by separate individuals, or combined and held by one individual as the Board may elect. The Treasurer and Auditor/Controller shall serve at the pleasure of the Manager and may be removed at any time, with or without cause, in the sole discretion of the Manager.

4.3 Authority Attorney. The Attorney for the Authority, who may not be counsel to one of the Member Agencies, shall be engaged by the Board of Directors. The Attorney for the Authority or a designated deputy shall attend or participate in meetings of the Board of Directors; provided, however, that the absence of the Authority Attorney shall not affect the validity of any meeting. The Attorney shall perform such other duties the Board of Directors specifies.

4.4 Official Bond. Pursuant to Government Code section 6505.1, the public officer, officers or persons who have charge of, handle or have access to any property of the Authority shall file an official bond in an amount to be fixed by the Parties to this Agreement.

4.5 Additional Officers and Employees. The Board shall have the power to appoint such additional officers and to employ such employees, assistants, contractors, consultants and others as may be appropriate. Such power shall include, but not be limited to, the power to appoint a Manager for the purposes of managing and administering the Authority, and an Operator for the purposes of providing operations, maintenance, and similar services to the Authority. A Member Agency may be appointed as the Authority's Manager and/or Operator pursuant to a written agreement with the Authority.

ARTICLES

COMMITTEES

5.1 Committees. The Board of Directors, by a majority vote, may form committees for any purpose.

Such vote shall designate the method for appointing committee members, the scope of the duties and responsibility of the committee, whether the committee is a standing or ad hoc committee, and such other matters as the Board may deem appropriate.

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ARTICLE6

FINANCES
Fiscal year. The Fiscal Year of the Authority shall be the period commencing on July 1 of each year and ending on and including the following June 30.

6.2 Annual Budget.

6.2.1 Interim Budget. The Board shall, within one hundred and twenty days (120) days of the Effective Date of this Agreement, approve an interim budget, which shall constitute the operating budget until the Annual Budget is adopted.

6.2.2 Annual Budget. Except for costs related to construction of Phase I, which shall be subject to the Cost Sharing Agreement, annually, in March of each year, the Board shall adopt a preliminary budget and an allocation of contributions from Member Agencies for presentation to each Member Agencies' governing body. The governing body of each Member Agency shall, no later than May 31 of each year, review and comment on the preliminary budget and allocation of contributions. Thereafter, annually, prior to July 1 of each year, the Board shall adopt a final budget for all expenses to be made by the Authority during the ensuing Fiscal Year and adopt an allocation of contributions from Member Agencies consistent with Section 6.3.2. Each annual budget shall be adopted and shall be effective on the affirmative unanimous vote of the Directors, except that the first Annual Budget may be adopted by an affirmative vote of a majority of the Directors.

Contributions for each Member Agency shall be due and payable to the Authority on a monthly basis with the first payment being made within thirty (30) days of approval of the budget.

6.2.3 Failure to Obtain Budget Approval. In the event the Board does not adopt a budget prior to the beginning of a fiscal year, the budgeted amounts of all expenses and allocation of contributions from Member Agencies shall remain the same as the amounts last approved by the Board in its most recently adopted budget; provided, however, that the amounts shall be increased by the Consumer Price Index ("CPI") with a minimum increase of no less than two percent (2%). The CPI shall mean the Consumer Price Index, Bureau of Labor Statistics, U.S. Department of Labor Consumer Price Index-All Urban Consumers, All Items, Los Angeles-Long Beach-Anaheim CA for the twelve (12) month period ending the February prior to the beginning of the fiscal year, or if this index no longer exists, an index approved by a majority of the Board. This factor shall be applied to the budget until such time as a new budget is adopted by the Board. Any shortfall in revenues shall be made up from available reserves dedicated by the Board for such purpose and, if insufficient to cover the shortfall, any available reserve funds which have not been designated by the Board for a particular purpose or otherwise legally restricted for other purposes. Reserves shall mean any available cash or investments.

6.3 Funds, Accounts and Reports. There shall be strict accountability of all funds and reporting of all receipts and disbursements.

6.3.1 Sources of Funds. The sources of funds available to the Authority may include, but are not limited to, the following:

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i. Grants, donations, and loans received by the Authority from local, State, or Federal agencies or from individuals or businesses.
ii. Funds collected as user charges or user fees by Member Agencies. 111. Funds collected from Members pursuant to this Agreement. iv. Funds received from State and Federal disaster relief agencies. v. Funds obtained by issuing Bonds.
vi. Funds collected pursuant to a Financing Agreement.
vn. "In kind" contributions from Member Agencies.
v111. Funds from any other source derived.

The Authority shall arrange for the receipt of such funds from the above sources as are available to the Authority and as are necessary for the conduct of the Authority's activities. Member Agencies may, in the appropriate circumstances: (a) make contributions from their treasuries for the purposes set forth in this Agreement; (b) make payments of public funds to defray the cost of such purposes; and ( c) make advances of public funds for such purposes. The provisions of Government Code section 6513 are incorporated into this Agreement.

6.3.2 Water Purveyor Contributions. The Parties shall pay their pro rata share of all PreConstruction and Construction Costs incurred by Pismo Beach in connection with Phase 1 of the Project.

The Parties agree to the following cost allocation of the total Pre-Construction and Construction costs for Phase 1 for each Party:

1. Arroyo Grande shall contribute 25%.
ii. Grover Beach shall contribute 36%.
111. Pismo Beach shall contribute 39%.

As provided in Section 6.2.2, annual contributions by Member Agencies for ongoing operations shall be consistent with the above percentages.

6.3.3 Accounts. Revenues or funds received or made available to the Authority from any source whatsoever, shall be deposited into accounts that may be established by the Authority and may be expended by the Authority in any legal manner, subject to such reservations as may be imposed by the Authority from time to time.

6.3 .4 Reports. The Treasurer shall, within one hundred and eighty days (180) days after the close of each Fiscal Year, give a complete written report of all financial activities for such fiscal year to the Board of Directors and to each Member Agency. The Authority's books and records shall be open to inspection at all reasonable times by representatives of each Member Agency.

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6.4 Payments and Advances. No expenditures in excess of those budgeted shall be made without approval of a revised or amended budget, which may from time to time be submitted to and approved by the Board of Directors.

6.5 Audit. The Treasurer and Auditor/Controller shall cause an annual audit of the accounts and records of the Authority to be made and reported in accordance with Sections 6505 through 6505.6 of the Government Code. The audit shall be conducted by an independent certified public accountant. The audit shall conform to generally accepted auditing standards. Such report shall be filed within twelve (12) months of the end of the Fiscal Year under examination.

ARTICLE7

COST ALLOCATION
7 .1 Operations and Maintenance Costs. Each Party shall pay its allocated share of all expenses incurred by the Authority for administration, operation, and maintenance of its Facilities and Ancillary Facilities based on the Water Purveyor Contribution percentages. 7 .2. Capital Improvement Costs. Capital improvement costs to acquire, construct, or improve Facilities and Ancillary Facilities shall be subject to allocation between the Parties based on the Water Purveyor Contribution percentages.

7.3 Debt Service. In connection with the issuance of Bonds or the incurrence of other obligations by the Authority to finance or refinance Construction Costs or capital improvement costs to acquire, construct or improve Facilities and Ancillary Facilities, each Party shall negotiate a Financing Agreement with the Authority that includes provisions by which each Party shall make payments with respect to such Party's share of debt service on the Bonds or other obligations incurred by the Authority, consistent with any pre-existing contractual obligations of each Party.

Each Financing Agreement will stipulate that the debt service payments made by a Party to the Authority will be subject to the payment limitations set forth in Article IV, Section 5 of the Cost Sharing Agreement. For purposes of this Section 7.3, the provisions of Article IV, Section 5 of the Cost Sharing Agreement shall continue in full force and effect in the event that the Cost Sharing Agreement shall terminate.

At the time of a Bond issuance or the entering into of any other obligation by the Authority, if a Party elects to pay its share of the capital improvement costs in full with cash, it will not be allocated any share of the debt service on such Bonds or other obligations incurred by the Authority, and will not be required to enter into a Financing Agreement with the Authority, for that Bond issuance or obligation.

ARTICLES

TERMINATION/WITHDRAW AL/AMENDMENT

8.1 Duration and Termination. This Agreement shall become effective as of the Effective Date and shall continue in full force and effect until terminated by the mutual written agreement of all Member Agencies, which agreement shall meet the requirements imposed by the terms and conditions of all outstanding bonds, notes, warrants, indentures and other evidences of indebtedness; provided, however, that this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the affairs of the Authority.

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8.2 Withdrawal. Notwithstanding any other provision of this Agreement, any Member Agency may withdraw from the Authority by providing the Authority with one hundred eighty (180) days written notice of its intent to withdraw. A withdrawal from the Authority constitutes a withdrawal of that Member Agency's representatives from the Board of Directors.

8.3 Effect of Withdrawal. The withdrawal of a Member Agency shall not terminate its responsibility to contribute its share of any obligation incurred by the Authority, including amounts determined by the Board for ( 1) liabilities and claims accrued during the time the agency was a Member Agency or (2) budgeted expenses for the Fiscal Year in which notice of intent to withdraw is given. Except as the withdrawing Member Agency may agree, in writing, with the Board, the withdrawing Member Agency shall automatically relinquish all rights as a Member Agency under this Agreement, on the effective date of the withdrawal. Upon termination of this Agreement, a Member Agency that has withdrawn will be treated like all other Member Agencies for purposes of disbursement of Authority assets, unless otherwise agreed in writing.

8.4 Disbursement. Upon termination of this Agreement and after payment of all liabilities, costs, expenses and charges validly incurred under this Agreement, all remaining assets of the Authority shall be disbursed among Member Agencies, including any Member Agencies which previously withdrew from the Authority. All assets shall be divided among the Member Agencies in accordance with and proportionate to the Water Purveyor Contribution amounts stated in Section 6.3.2, if it is feasible to do so.

8.5 Amendment. This Agreement may be amended at any time by the written approval of the governing body of each Member Agency upon recommendation of a majority of the Board of Directors of the Authority.

ARTICLE9

SPECIAL PROVISIONS
9 .1 Insurance. The Authority shall maintain types and levels of insurance coverage for the Authority as the Board of Directors determines to be reasonably adequate, provided, however, that each Member Agency shall be named as an additional insured on such policy of and/or agreement for insurance coverage.

9.2 Liability of Authority, Board, Officers, Employees. Pursuant to Government Code section 6508 .1, the debts, liabilities, and obligations of the Authority shall not be the debts, liabilities and obligations of any of the Member Agencies or any of their respective members, officers, directors, employees or agents. The Authority, its Directors, officers, employees, staff and agents shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No Member Agency, its officer, director or employee shall be responsible for any action taken or omitted by any other Member Agency, or its officers, or employees or the Authority, its officers, or employees.

9.3 Indemnity. The Authority shall indemnify, defend and hold harmless the Board of Directors, the individual Member Agencies, and their elected officials, members, officers, directors, employees and agents from and against any and all liability, loss, damages, expenses, costs (including, without limitations, costs and fees of litigation or arbitration) of every nature, arising out of any act or omission related to this Agreement, including, but not limited to those related to the use of any property and/or facility of any Member Agency, The Authority shall indemnify, defend and hold harmless the individual Member Agencies, and their elected officials, members, officers, directors, employees and agents from and against any and all liability, loss, damages, expenses, costs (including, without limitations, costs and

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fees of litigation or arbitration) of every nature, arising out of any willful misconduct of the Authority Board of Directors or its Board Members, officers or employees. Further, the duty of the Authority to indemnify, defend and hold harmless shall not extend to the activities of the individual Member Agencies, and their members, officers, directors, employees and agents that are outside the scope of this Agreement.

The Authority's duty to indemnify each Member Agency pursuant to this Agreement shall survive that Member Agency's withdrawal from the Agency. This section shall not be deemed to supersede, extinguish, or modify the indemnification provisions in the Cost Sharing Agreement. 9 .4 Conflict of Interest Code. The Authority shall, by resolution, adopt a conflict of interest code as required by law.

ARTICLE 10

MISCELLANEOUS PROVISIONS

10.l Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable, and the remainder of the Agreement or the application of such provisions to the other Party or to other persons or circumstances shall not be affected thereby. Each Party hereby declares that it would have entered into this Agreement, and each subsection, sentence, clause and phrase thereof, irrespective that one or more sections, subsections sentences, clauses or phrases or the -- application thereof might be held invalid.

10.2 Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to the respective Parties, as follows:

City of Arroyo Grande
Attention: City Manager
300 E Branch Street
Arroyo Grande, CA 93420
City of Grover Beach
Attention: City Manager
154 S. Eighth Street
Grover Beach, CA 93433
City of Pismo Beach
Attention: City Manager
7 60 Mattie Road
Pismo Beach, CA 93449

10.3 Other Obligations. The responsibilities and obligations of each Party to this Agreement shall be. solely as provided in this Agreement, or as may be provided for in other agreements to be executed by the Parties, including but not limited to the Cost Sharing Agreement. In the event there is any conflict between this Agreement and the Cost Sharing Agreement, the provisions of this Agreement shall be controlling.

10.4 Consent. Whenever in this Agreement or in any amendment thereto consent or approval is required, the same shall not be unreasonably withheld.

10.5 Other Agreements Not Prohibited. Other agreements by and between the Parties of this Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Agreement.

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10.6 Assignm~nt. The rights, titles and interests of any Party to this Agreement shall not be assignable or transferable without the consent of the governing body of each Party hereto and the Board of Directors.

Any assignment of a membership in the Authority made under this Section 10.6 by the governing body of any Party hereto will not result in the novation of the assignor Member Agency's obligations with respect to this Agreement, a Financing Agreement or any other agreement which may obligate the assignor Member Agency, unless such novation is agreed to in writing by such consenting Member Agency, the assignee and the assignor Member Agency.

10.7 Section Headings. The section headings herein are for convenience of the Parties only, and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.

10.8 Laws of California. This Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of such State.

10.9 Construction of Language. It is the intention of the Parties hereto that if any provision of this Agreement is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. 10 .10 Cooperation. The Parties recognize the necessity and hereby agree to cooperate with each other in carrying out the purposes of this Agreement.

10.11 Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

10.12 Enforcement. The Authority is hereby authorized to take any and all legal or equitable actions, including, but not limited to, an injunction and specific performance, necessary or permitted by law to enforce this Agreement.

10.13 Integration. This Agreement constitutes the full and complete Agreement of the Parties.

10.14 Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement. [ Signatures on following page.]

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IN WITNESS WHEREOF, the Parties have caused this Joint Exercise of Powers Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, making the same effective on the date signed by the last of all Parties hereto.

CITY OF ARROYO GRANDE:

By: -1----------'L''-------=---------- -
Care
Date: --1---"""'...L...J. ....... _ _
ATTEST:

By~ <-~'-"---
JessiaMatson, City Clerk
Date: t::i/z_c,/zz_
APPROVED AS TO FORM:

CITY OF GROVER BEACH:

By:---- --------- Jeff Lee, Mayor
Date: _ ____ _
ATTEST:

By:---- ----- ---- W endi Sims, City Clerk
Date: _ ____ _
APPROVED AS TO FORM:

By:---- --------- David P. Hale, City Attorney
Date: _____ _
CITY OF PISMO BEACH:

By: ~~
Ed Waage, Mayor
Date: I 6 }? /'2-,._
ATTEST:

By:
~ ~ - Date: I 't'ZAPPROVED AS TO FORM:

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15

IN WITNESS WHEREOF, the Parties have caused this Joint Exercise of Powers Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, making the same effective on the date signed by the last of all Parties hereto.

CITY OF ARROYO GRANDE:

By: ____________ _
Caren Ray Russom, Mayor
Date: _____ _
ATTEST:

By:--------------
Jessica Matson, City Clerk
Date: _____ _
APPROVED AS TO FORM:

By:-------------
Timothy J. Carmel, City Attorney
Date: _____ _
ATTEST:

By: Lu . ~ UYL() • 1
ORM:

I
I
By: .::.. ' -i,JL+--I+--f.r-'<...:.;,....JL----------
l_gavi _ . orney
Date: ,;;1
'A
I
CITY OF PISMO BEACH:

By: ____________ _
Ed Waage, Mayor
Date: _____ _
ATTEST:

By:-------------
Erica lnderlied, City Clerk
Date: _____ _
APPROVED AS TO FORM:

By: ____________ _
David M. Fleishman, City Attorney
Date: _____ _

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15 Page 84 of 185
Item 9.g.

MEMORANDUM
TO: City Council
FROM: Michael M. Martinez, Chief of Police
BY: David Culver, Police Commander
SUBJECT: Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services
DATE: June 11, 2024
RECOMMENDATION:
1) Approve a Memorandum of Understanding between the City of Arroyo Grande and the Lucia Mar Unified School District (LMUSD) to share the cost of salary and benefits for one School Resource Officer (SRO) position in Fiscal Year (FY) 2024-25; and 2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The cost of the School Resource Officer position is approximately $163,800 for Fiscal Year (FY) 2024-25. This agreement shares the cost of the salary and benefits associated with the officer between the City and Lucia Mar Unified School District (LMUSD). The City will receive fifty percent (50%) of the cost from LMUSD; totaling $81,900. These funds were included as estimated revenues in the City’s proposed FY 2024-25 Budget.

BACKGROUND:

The Arroyo Grande Police Department (AGPD) has been providing School Resource Officer (SRO) services to the Lucia Mar Unified School District (LMUSD) since the early 1990’s. The SRO Program is a collaborative effort between the AGPD and the LMUSD with the goal of reducing crime, drug abuse, violence, and providing a safe school environment. The SRO is a full-time police officer whose primary function is to address law enforcement concerns at their respective schools. The AGPD and LMUSD work closely in selecting the SRO by identifying specific traits that are essential to working in a

Item 9.g.

City Council
Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services June 11, 2024

school environment. The SRO program utilizes the SRO Triad concept as set forth by the National Association of School Resource Officers (NASRO) (Attachment 2). The SRO Triad concept generally means that the officers assigned to the SRO program are law enforcement officers, counselors and teachers. The SRO works closely with school officials and administrators to develop positive relationships with the community, students, parents and school officials. While the position is housed at, and primarily assigned to, Arroyo Grande High School, the SRO is responsible for responding to requests from Paulding Middle School and Ocean View and Harloe Elementary schools.

The SRO interacts with students from a variety of ages and backgrounds, often serving in a mentorship role.

One of the highlights of this program is the ability for the SRO to provide counseling to students on a formal and informal basis. The SRO regularly interacts with students and is often viewed as a role model. The SRO provides opportunities to forge beneficial relationships with staff and students, all the while being a visible deterrent to crime and other untoward behavior. The relationships that SRO’s establish with students are enduring beyond students’ graduation for personal and professional development. On site law enforcement provides familiarity with the layout of the campuses and administration, as well as provide quick assistance with student safety emergencies.

ANALYSIS OF ISSUES:

The LMUSD has requested SRO services be provided for the 2024-2025 school year.

The term of the agreement begins July 1, 2024, and ends June 30, 2025. This agreement is reviewed annually.

The SRO position has been in existence since the 1990’s and staff believes this program is extremely important to the City’s public safety services and should be maintained.

Given the City’s demographics, a substantial portion of public safety issues are youth related. If the position were not dedicated to schools, it would require other AGPD patrol personnel to respond to a large volume of school related calls for service. The SRO historically provides advantages and efficiency of personal networking relationships and collaboration from being teamed with school administration to address safety issues in a proactive role, rather than being responsive after the fact.

The MOU has been drafted so that AGPD and LMUSD share the costs of the SRO, including overtime pay. The cost of the MOU to LMUSD will be $81,900, except that LMUSD will pay for overtime work at rates which are included in Exhibit A attached to the MOU (Attachment 1). AGPD, specifically the Chief of Police, is responsible for hiring the SRO, but may solicit input from LMUSD to assist in their selection. Further, AGPD will collaborate with LMUSD in the implementation of the SRO program. For example, the

Item 9.g.

City Council
Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services June 11, 2024

SRO will coordinate with the school administration in order to provide lessons regarding police services and general citizenship. The SRO will primarily, however, respond to incidents or conduct investigations regarding calls to service.

In the LMUSD 2023-2024 school year (specifically July 1, 2023, to May 22, 2024), the SRO responded to (183) calls for service and completed (48) police reports. AGPD has developed guidelines for the SRO with a multifaceted approach to provide services given the many health and safety requirements set forth by the State. The LMUSD has agreed to partner with AGPD for another year of this program supporting the need to provide this valuable resource to the students, staff and the community.

ALTERNATIVES:

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

1. Approve the Agreement to share 50% of the cost for SRO services for FY 2024- 25 with any minor changes necessary to effectuate City Council’s intent;

2. Do not adopt the Agreement; or

3. Provide other direction to staff.

ADVANTAGES:

The LMUSD will help the City of Arroyo Grande continue enhanced school safety by sharing fifty percent (50%) of the cost of the salary and benefits associated with the actual officer assigned to the SRO position.

DISADVANTAGES:

Non-approval will result in the Police Department unable to dedicate an officer in the City schools on a full-time basis.

ENVIRONMENTAL REVIEW:

Approving the agreement is not a project subject to CEQA because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed School Resource Officer Memorandum of Understanding

2. National Association of School Resource Officers (NASRO) Best Practices

65501.00012\41327612.1
ATTACHMENT 1

SCHOOL RESOURCE OFFICER

MEMORANDUM OF UNDERSTANDING
A. Mission Statement
The community of Arroyo Grande, the Lucia Mar Unified School District, and the Arroyo Grande Police Department are significantly impacted by demands to address incidents and situations directly or indirectly related to juveniles and the schools. The problems of juvenile delinquency, alcoholic beverage and illegal substance abuse, gang involvement, and other youth-related problems that negatively affect the community and the schools can be best addressed in a pro-active, interactive, and preventive manner. Effective education requires a safe and orderly environment in which learning can occur.

Consequently, the Arroyo Grande Police Department and the Lucia Mar Unified School District jointly propose to implement the School Resource Officer (SRO) program within the Lucia Mar Unified School District for schools located within the City of Arroyo Grande.

The mission of the SRO program shall be to provide appropriate law enforcement resources and a school-based approach to the development of a positive relationship among students, staff and the police, the maintenance of a safe learning environment and the prevention of juvenile delinquency, alcoholic beverage and illegal substance abuse, and gang involvement by our community's youth.

In order to facilitate a proper working relationship between the school administration and the SRO, it is important to establish, maintain, and update specific guidelines and procedures to be followed by the SRO and school administrators.

This Memorandum of Understanding clarifies the roles of the SRO and school administrators, their scope of authority, and the respective responsibilities of the Lucia Mar Unified School District and the Arroyo Grande Police Department in this collaboration. The success of this program relies on effective communication among the SRO, school administrators, and other key staff members of each organization.

All references in this Memorandum of Understanding to responsibilities and obligations of the Lucia Mar Unified School District, the Arroyo Grande Police Department, and the City of Arroyo Grande are applicable only to schools located within the City of Arroyo Grande.

Under the terms of this Memorandum of Understanding, the Lucia Mar Unified School District and the Arroyo Grande Police Department agree that the duties, responsibilities and physical presence of the SRO are not limited to the Arroyo Grande High School but include all schools in the Lucia Mar Unified School District within the City of Arroyo Grande.

65501.00012\41327612.1
ATTACHMENT 1
B. Concept
The SRO program shall utilize the SRO Triad concept as set forth by the NASRO National Association of School Resource Officers (NASRO) that is attached hereto and incorporated herein by reference. The SRO Triad concept generally means that the officers assigned to the SRO program are law enforcement officers, counselors and teachers. The SRO is first and foremost a law enforcement officer for the City of Arroyo Grande. The SRO shall be responsible for carrying out all duties and responsibilities of a Police Officer and shall ultimately at all times remain under the control of the Arroyo Grande Police Department and its policies and procedures.

The SRO will comply with the policies and procedures of the Lucia Mar Unified School District to the extent that such policies and regulations do not conflict with those of the Arroyo Grande Police Department or the City of Arroyo Grande are not in conflict with other terms In this Memorandum of Understanding, and are not in conflict with federal, state, or local laws. The SRO Is an enforcement officer in CRIMINAL matters only. The SRO shall not enforce any school or classroom rules. The SRO is not a school disciplinarian and should not assume this role. The SRO shall not involve themselves in administrative matters of Lucia Mar Unified School District that do not relate to the duties and responsibilities of the SRO. The SRO is not a formal counselor and will not act as such; however, the SRO may be used as a resource to assist students, parents, school staff and all persons involved with the Lucia Mar Unified School District. The SRO may also be used as a teacher and can instruct in a variety of subjects ranging from alcoholic beverage and illegal substance abuse to citizenship and community responsibilities. The SRO may use teaching to build rapport between the students and the staff.

C. Description of General Duties

1. The SRO is a sworn Arroyo Grande Police Officer assigned to provide the law enforcement expertise and resources to assist school staff in maintaining safety and order within the assigned school(s) and in the prevention and control of crime, Juvenile delinquency, truancy and disorder on school campuses and in the immediate area of the school campuses if students may reasonably be involved through the enforcement of applicable state statutes and Municipal Codes as appropriate.

2. The SRO will conduct or assist in the investigation of incidents on school campuses.

3. The SRO may assist in the coordination of the efforts of other law enforcement agencies on the school campuses.

4. The SRO will be considered an active member of the administrative team in his/her assigned school(s).

5. Although the SRO's primary responsibility and location will be the Arroyo Grande High School, he/she shall. respond to SRO-related issues at other Lucia Mar Unified School District campuses within the City as reasonable and appropriate.

6. The school buildings, grounds, and the adjacent neighborhoods and streets will be the equivalent of the SRO's patrol area and he/she will assume primary responsibility for

65501.00012\41327612.1
ATTACHMENT 1
handling calls for police service and coordinating the response of other police or emergency resources to the school. All criminal activity that comes to the attention of the school staff shall be reported immediately to the Police Department. In an emergency situation, the school shall call 911 and should also notify the SRO as soon as reasonably possible. In a non-emergency situation, the school should notify the SRO or call the penemergency police Department number if the SRO is not available. The SRO may delay his/her Immediate response to incidents that are not of an emergency nature for action upon his/her return to duty.

7. The Arroyo Grande Police Department will provide the SRO with a vehicle for his/her use as appropriate.

8. The SRO will be required to appear in court and assist in prosecution and other judicial processes as reasonably necessary as a result of his/her position.

9. The SRO's duty schedule will be determined by the Chief of Police or his/her designee, in conjunction with the school administration and in compliance with the Fair Labor Standards Act, but will generally be arranged to provide coverage and visible presence throughout the school day including peak arrival and departure times before and after school. In addition, the SRO may be required to attend school-related functions during normal classroom hours and special after-school activities, e.g. school dances and sporting events. If the SRO is required to attend special after-school activities, he/she shall take reasonable measures to adjust his/her normal work schedule. This type of shift adjustment shall normally be reserved for Arroyo Grande High School events and shall not replace other security arrangements, e.g. off-duty police personnel or private security. The Arroyo Grande Police Department shall use its best efforts to provide services requested by the Lucia Mar Unified School District. The Arroyo Grande Police Department may assign another officer to act as a temporary SRO if: (a) the SRO is not available or (b) in order to avoid overtime charges to the Lucia Mar Unified School District.

10. The SRO will normally conduct their duties in full police uniform to enhance the visible presence of and interaction with a uniformed Police Officer; however, the SRO may be permitted to wear plainclothes according to any special needs and with the prior approval of the Chief of Police or his/her designee.

11. The SRO will assist with training for the school administration in law enforcement-related matters. Information about crime trends and changes in criminal law relevant to schools shall be disseminated to the school administration to assist in effectively establishing and maintaining safe school environments.

12. The SRO may become involved with the school's curriculum, via coordination with school administration, and provide instruction that will enhance the student's understanding of the police mission and the responsibilities of citizenship. However, responding to incidents or conducting investigations must, of necessity, take precedence over classroom instruction. Lesson plans for all formal, organized presentations shall be forwarded to the school administration and the Chief of Police or his/her designee prior to presentation.

65501.00012\41327612.1
ATTACHMENT 1

13. The SRO will be responsible for monitoring the social and cultural environment to identify emerging youth problems. All information concerning these emerging issues shall be provided to the Chief of Police or his/her designee and the school administration.

Prevention and early intervention strategies shall be coordinated with the Chief of Police or his/her designee in conjunction with the school administration.

14. When it is in the best interest of the Police Department and the school, the SRO may make formal presentations to, or participate in, meetings related to school-based community organizations, students, and parents such as parent-teacher organizations, School Advisory Council, and School Board meetings. The presentations provided or the educational resources made available may include, but are not limited to, alcoholic beverage and illegal substance abuse, criminal law-related education, criminal justice system orientation, juvenile delinquency prevention, gang involvement and. awareness and community responsibility. Participation in other activities such as panel discussions, mentoring programs, and community coalitions or task forces must be approved in advance by the Chief of Police or his/her designee.

15. Programs conducted in schools by other Police Department members shall be coordinated with the SRO to avoid redundant services and to ensure equitable distribution of such programs and services.

16. A critical element of the SRO program is an open relationship and strong communication between the school administration and the SRO. The SRO shall meet on a weekly basis, or more frequently if necessary, with school administration for the purpose of exchanging information about current crime trends, problem areas, or other areas of concern that have the potential for disruption in the school or within the community.

17. During times when schools are in session, the SRO will devote his/her complete shift to the school calendar day, except for required duties such as court appearances or unless required to respond to emergency situations including but not limited to Regional SWAT team call-outs. During times when schools are not in session, e.g. holiday breaks, spring break, and summer vacation, and the SRO is not involved in assigned school-related activities, the SRO will be assigned to duties at the discretion of the Police Department.

The SRO shall attend all in-service training required by the Police Department throughout the year, whether or not school is in session.

18. The SRO shall utilize the appropriate Police Department mechanism, e.g. the CADS or crime and incident reports, to record his/her activities in a timely manner. That record shall be made available to school administration upon request.

19. Other duties and responsibilities of the SRO include:
(a)Proper disposal of illegal substances recovered by the school and not needed for criminal prosecution.
(b)Maintaining familiarity with the Lucia Mar Unified School District Student Rules and Regulations.
(c)Attending and providing testimony at school disciplinary hearings upon request.

65501.00012\41327612.1
ATTACHMENT 1
(d)Participation in other youth-related community activities as assigned by the Chief of Police or his/her designee.

D. Selection
Selection of the SRO and supervisory personnel shall be at the sole discretion of the City’s Chief of Police. The Chief of Police may solicit input from the Lucia Mar Unified School District to assist in the selection of the SRO.

E. School District Responsibilities
The Lucia Mar Unified School District shall be responsible to provide to the SRO as follows:

1. Access to a climate controlled office with proper lighting and a landline telephone for general use.

2. A location for files and records that can be properly locked and secured.

3. A desk with drawers, chair, filing cabinet and basic office supplies.

4. Appropriate access to a Lucia Mar Unified School District computer and secretarial/administrative assistance when necessary.

5. Access to and encouragement of classroom participation.

6. The opportunity for the SRO to address school staff about the SRO program and its goals and objectives.

7. Seek input from the SRO regarding criminal justice issues related to the school environment.

8. Allow the SRO to wear and operate portable audio/video recording equipment (body worn camera) in accordance with Policy 451 of the Arroyo Grande PD CA Policy Manual.

9. Emergencies. In the event of emergencies, school officials or personnel shall first contact 911 before attempting to contact the SRO.

10. Lucia Mar Unified School District shall provide a district cell phone to the SRO assigned to Arroyo Grande High School.

F. Desired Outcome

1. To mutually provide for a safe and secure environment for all persons working, attending, or visiting the Lucia Mar Unified School District buildings and grounds within the City of Arroyo Grande.

2. To mutually develop· and maintain an active partnership between the Arroyo Grande Police Department and the Lucia Mar Unified School District to preserve a safe and secure educational environment.

65501.00012\41327612.1
ATTACHMENT 1

3. To communicate and cooperate regarding law enforcement-related issues occurring within the boundaries of the Lucia Mar Unified School District campuses In the City of Arroyo Grande.

4. When deemed reasonable· and appropriate, to mutually apply counseling, mentoring, and/or alternative resources to conflict resolution consistent with the policies and procedures of the Arroyo Grande Police Department and the Lucia Mar Unified. School District with the realization t􀋻at law enforcement processes are but one of the possible solutions available as an option for intervention.

5. To mutually participate in the educational process as a resource and as an advocate for the criminal justice system.

G. Information Sharing
Consistent with the basic tenants of the relationship between the school administration and the SRO described in this Memorandum of Understanding, open communication is essential to ensure program effectiveness. The SRO should exchange information with the school administration regarding students' involvement in criminal activity in and around the school.

This shall be limited to information that directly relates to and· contributes to the safety of the school environment. The SRO shall not make any official document, police report, or record available to the school administration or its staff that is not legally permissible nor shall the school administration or its staff make any official document, report or record available to the SRO that is not likewise legally permissible.

H. Supervision Responsibility & Chain of Command for the SRO As the employer of the SRO, the Arroyo Grande Police Department shall maintain primary supervision of the SRO and the SRO shall follow the chain of command set forth in the Arroyo Grande Police Department Manual. The SRO will work with the school administration to determine the most reasonable and effective use of the SRO's time and expertise, but shall not be subject to the supervision or direction by the Lucia Mar Unified School District, its officers, agents or employees. Scheduling needs outside of regularly scheduled school hours involving investigations, school-related activities and/or school-related functions shall be coordinated between the Lucia Mar Unified School District Superintendent or a designate chosen by the Superintendent, and the SRO's supervisor.

Evaluation of the SRO shall be conducted as a function of supervision consistent with· the Arroyo Grande Police Department's policies and procedures. The Superintendent of the Lucia Mar Unified School District, or his/her designee, shall have the opportunity to submit supplemental evaluations of the SRO related to the fulfillment of position responsibilities to the SRO supervisor. The SRO supervisor, as a part of the SRO's evaluation, shall consider any such supplemental evaluation.

65501.00012\41327612.1
ATTACHMENT 1
I. Decision-Making Authority Regarding Enforcement of Applicable Laws and Procedures by the SRO
The Arroyo Grande Police Department has policy and procedure in place managing chain of command, span of control, and resolution of conflicting orders. All chain of command issues involving the SRO shall be resolved through existing Police Department policy.

The SRO as a sworn police officer shall retain decision-making authority related to law enforcement issues, including, but not limited to, the use of body worn camera. Decisionmaking authority related to school policy, procedures, and practices shall be retained by the school administration and staff. Inconsistencies and/or conflicts between Police Department policy and Lucia Mar Unified School District policy shall be resolved through mutual cooperation and alterations or amendments to this Memorandum of Understanding.

J. Evaluation of the Program
Evaluation of the SRO program shall be conducted informally at the end of the first school semester. A formal annual program review/evaluation shall be conducted within 30 days of the end of each school year.

Evaluation of the SRO program shall be conducted as a cooperative effort between the Arroyo Grande Police Department and the Lucia Mar Unified School District.

K. Commitment to School Resource Officer Retention
Both the· Arroyo Grande Police Department and the Lucia Mar Unified School District are committed to the philosophy and interaction of a SRO within the school system. The SRO functions as a pro-active Community Policing and Problem-Solving resource for the Arroyo Grande Police Department as an integrated and intensively interactive police .resource with Lucia Mar Unified School District students, staff, and administration. Therefore, understanding 'that the SRO is mutually beneficial to the duties, responsibilities, and organizational goals of both parties to this agreement, a plan to retain this position will be considered on an annual basis by the Lucia Mar Unified School District, the School Board and the Arroyo Grande Police Department through cooperative funding arrangements proposed by the parties at that time.

L. Funding Plan
The Arroyo Grande Police Department and the Lucia Mar Unified School District will individually budget, through local municipal and district funding sources, for operational expenses necessary to comply with this agreement to fully fund the SRO position. The calendar year effected by this Memorandum of Understanding shall be immediately sequential to the school year end date to ensure that the SRO position will not be terminated within a school year.

65501.00012\41327612.1
ATTACHMENT 1
The Lucia Mar Unified School District shall be responsible for fifty percent (50%) of the cost of the salary and benefits associated with the actual officer assigned to the SRO position.

Such cost shall include salary; retirement; Social Security; medical, dental and vision insurance; Workers' Compensation; uniform allowance; life insurance, employee assistance plan, bilingual, and educational incentive pay, if applicable; and all additional costs that are or may become applicable for the assigned SRO due to the existing Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers Association, changes that may be negotiated in the Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers Association or a change in the assigned SRO during the term of this Memorandum of Understanding between the Lucia Mar Unified School District and the Arroyo Grande Police Department. The Arroyo Grande Police Department shall be responsible for the remaining fifty percent (50%) of those same costs.

The Lucia Mar Unified School District shall transmit one-half (1/2) of its share of the program costs in one payment to the City of Arroyo Grande invoiced in September of the annual term of the Memorandum of Understanding and the remaining one-half (1/2) of its share of the program costs in another payment to the City of Arroyo Grande invoiced in February of the annual term of the Memorandum of Understanding. Both payments shall be due in full no later than 30 days after invoice.

The SRO may accrue overtime when present at certain school events, including, but not limited to, home football games, Winter Formal Dance, and Prom. If the presence of the SRO at a school-related special event outside normal school hours is reasonably appropriate, the SRO should make reasonable efforts to adjust his/her work schedule to eliminate any potential overtime expense associated with the special event. The Arroyo Grande Police Department cannot guarantee that a schedule modification will eliminate a need for the SRO to accrue overtime hours, and the Arroyo Grande Police Department will prioritize safety at school functions in all cases.

M. Termination
This Memorandum of Understanding may be terminated without cause either by the Arroyo Grande Police Department or the Lucia Mar Unified School District upon ninety (90) days written notice. Upon termination, any funds provided the Lucia Mar Unified School District shall be pro-rated and returned as appropriate to the Lucia Mar Unified School District.

N. Indemnity

1. Arroyo Grande Police Department agrees to defend, indemnify and hold Lucia Mar Unified School District, its officers, employees, agents and volunteers harmless from and against any and all liability, loss, expense (including reasonable attorneys' fees) or claims for injury or damages arising out of the performance of this Memorandum of Understanding but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts, omissions or misconduct of Arroyo Grande Police Department, its officers, employees, agents or volunteers.

65501.00012\41327612.1
ATTACHMENT 1

2. Lucia Mar Unified School District agrees to defend, indemnify and hold Arroyo Grande Police Department, its officers, employees, agents and volunteers harmless from and against any and all liability, loss, expense (including reasonable attorneys' fees) or claims for injury or damages arising out of the performance of this Memorandum of Understanding but only in proportion to and to the extent such liability, loss, expense, attorney's fees, or claims for injury or damages are caused by or result from the negligent or intentional acts, omissions or misconduct of Lucia Mar Unified School District, its officers, employees, agents or volunteers.

O. Term
The term of this Memorandum of Understanding shall be for one year from the effective date, which shall be July 1, 2024.

P. Cost
The total cost of this Agreement shall be $81,900, except that the Lucia Mar Unified School District shall incur additional costs for overtime work of the SRO at the rates set forth in the attached exhibit “A.”
Q. Miscellaneous

1. Entire Agreement. This Memorandum of Understanding contains the entire agreement between the Arroyo Grande Police Department and the Lucia Mar Unified School District related to the SRO positions. Amendments to this Memorandum of Understanding may be made only in writing and signed by all parties to the Memorandum of Understanding.

2. Severability. If any provision of this Memorandum of Understanding is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

3. Waiver. Any waiver by the Arroyo Grande Police Department of any breach of any one or more of the terms of this Memorandum of Understanding shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term thereof. Failure on the part of Arroyo Grande Police Department to require exact, full, and complete compliance with any term of this Memorandum of Understanding shall not be construed in any manner as changing the terms hereof, or stopping the Arroyo Grande Police Department from enforcement hereof.

4. Authority. The Parties each warrant and represent to the other that they have the full legal authority to enter into this Memorandum of Understanding.

65501.00012\41327612.1
ATTACHMENT 1
Arroyo Grande Police Department Lucia Mar Unified School District Representative Representative
Name: _____________________ Name: _____________________ Title: _______________________ Title: _______________________ Date: _______________________ Date: _______________________ Signature: ___________________ Signature: _____________________ LMUSD Board Approved:___________

EXHIBIT A
Total cost of Arroyo Grande Police Department and Lucia Mar Unified School District SRO: $163,800 – this amount split 50/50 means that each party shall be responsible for $81,900.

Overtime will be calculated as follows:

Position Annual Rate Hourly Rate Overtime Rate
School Resource Officer 163,800 78.75 118.13 Page 98 of 185 The Standards and Best
Practices presented here are
separated into two
classifications: Mandatory (M)
and Recommended (R) to
identify the importance of
each Standard and Best
Practice.

Mo Canady
NASRO Executive Director
 : [email protected]
 : (205) 739-6060
© 2018 BY THE NATIONAL ASSOCIATION OF
SCHOOL RESOURCE OFFICERS, INC.,
(NASRO). ALL RIGHTS RESERVED. THIS

DOCUMENT MAY NOT BE REPRODUCED OR

DISTRIBUTED IN ANY FORM OR BY ANY

MEANS WITHOUT THE EXPRESSED WRITTEN
PERMISSION OF NASRO.

ATTACHMENT 2

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 2 Forward

1.0 PURPOSE OF THE STANDARDS

1.1 General
This publication represents a standard for domestic and international agencies and departments. This Standards and Best Practices for the School Resource Officer Programs was developed and is maintained by the National Association of School Resource Officers, Inc., (NASRO) a section 501(c)(3) IRC membership association established pursuant to Chapter 617 of the laws of the State of Florida.

1.2 Applicability
This document contains professional standards and recommended best practices for law enforcement agencies both within and outside of the United States, regardless of size or level of government (federal/national, state/provincial or local).

NASRO has adopted this Standards and Best Practices for the School Resource Officer Programs and supports the need for the standards to be used as a guide for new and existing SRO units and for the best practices to be reviewed and adopted by all law enforcement, school safety agencies and school boards, as recommended.

NASRO has adopted these standards and best practices as the bases for future law enforcement certification or accreditation and supports the need for the standards to be used as a guide for all SRO law enforcement administrations and operations.

1.3 Intent
These standards and best practices are intended to provide a foundation of safe operating practices in the performance of the unit’s mission and were formulated based on what has been identified as the two highest priorities of school-based law enforcement programs:

1. Safety first in all aspects of the operation.

2. Provide excellence in SRO services in support of the agency’s mission.

1.4 Scope
The scope of this document is intended to encompass all aspects of SRO law enforcement and has been divided in four (4) major sections: Administration, Selection, Training and Collaboration. The subsections are intended to encompass the primary aspects of SRO law enforcement unit administration and operations.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 3 2.0 THE MAJOR BENEFITS OF ADOPTING THESE STANDARDS
Agencies are strongly encouraged to adopt and implement the standards and best practices outlined in this publication. They have been designed as industry standards intended to foster a universal application of best practices throughout the SRO law enforcement community. Although adoption and implementation of these standards and best practices is strictly voluntary, agencies that choose to adhere to them set themselves apart from others, becoming exemplars of SRO safety and operational excellence.

2.1 Safe, Effective and Cost-Efficient SRO Law Enforcement Operations Compliance with these standards and best practices provides agencies with a foundation upon which a culture of safe operating practices may be formulated and establishes a mark of excellence to further develop and enhance the SRO unit’s professionalism, efficiency, and overall effectiveness.

2.2 Greater Accountability with the Agency
These standards and best practices provide the respective agency chief, sheriff, or department head sound training principles, personnel qualification requirements, clearly defined lines of authority, and examples of accepted industry standards that support informed decision-making and resource allocation.

2.3 Controlled Liability Insurance Costs
Compliance with these standards and best practices may allow for agencies to more easily purchase SRO law enforcement and liability insurance, increase the limit of their insurance coverage, and, in many cases, lower their insurance premiums and/or gain other financial incentives.

2.4 Stronger Support from Government Officials and the Community By complying with these standards and best practices, agencies establish credibility as professional operations, which provide safe, cost-effective, and essential SRO support to law enforcement operations in a variety of missions.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 4 TABLE OF CONTENTS
Section Page
Section 1 Administration 5-8

01.01.00 Definition 5

01.01.02 Purpose 5

01.01.03 Knowledge and Support 5

01.01.04 Memorandum of Understanding 6-8
Section 2 Selection 9-10

02.01.00 Selection Process 9

02.01.02 Experience 9

02.01.03 Number of SROs Selected 9

02.01.04 School Climate 10

02.01.05 Willingness in Developing Youth 10

02.01.06 Communication Skills 10

02.01.07 Probationary Period 10
Section 3 Training 11-13

03.01.00 Training Standards 11

03.01.01 Importance 11

03.02.01 Basic SRO Course 12

03.02.02 The TRIAD Approach 12

03.02.03 School Administration Policies & Procedures 12

03.03.00 Advanced SRO Course 13

03.04.00 Single Officer Rapid Deployment 13
Section 4 Collaboration 14-15

04.01.01 Definition 14

04.01.02 Defining Role of School Admin. and the SRO 14

04.01.03 The Administration’s Role in SRO Selection 15

04.01.04 The Administration’s Role in SRO Evaluation 15

04.01.05 The Administration’s Role during the SRO
Probationary Period
15 Limitation of Liability
The National Association of School Resources Officers, Inc., makes no warranty, expressed or implied, for the benefit of any person or entity with regard to any aspect of the standards and best practices contained herein. These standards were adopted for the sole purpose of developing best practices by law enforcement agencies, SRO units or division, school safety organizations, and school boards throughout the U.S., and various foreign countries to obtain and maintain certification, there being no intended third-party beneficiaries hereof, expressed or implied.

Nothing herein shall be construed so as to create any right, use, property interest, or entitlement on the part of any applicant agency or third party. These standards shall in no way be construed to be an individual act of any director, employee, agency, member, individual, or a legal entity associated with NASRO or otherwise be construed so as to create any liability in an individual or official capacity on the part of any NASRO, director, employee, agency, member, individual, or legal entity associated with NASRO.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 5 SECTION ONE | ADMINISTRATION

01.01.00 Administrative Standards Compliance

01.01.01 Definition
A school resource officer (SRO) is a full-time law
enforcement officer with sworn law enforcement authority, trained in school-based policing and crisis response,
assigned by the employing law enforcement agency to work with the school using community-oriented policing
concepts.
(M)

01.01.02 Purpose
The purpose of a successful SRO program is to “bridge
the gap” between law enforcement and youth. This purpose is best accomplished by using the TRIAD model: Law
Enforcement (LEO), Teacher (Guest Speaker), and
Informal Counselor (Mentor). Each element of the TRIAD
will be further explained throughout this document.
(R)

01.01.03 Knowledge and Support from Agency Administration For the SRO program to be successful, the law
enforcement agency head and the superintendent of the
school district must understand and fully support the SRO program, including an understanding of the standards and best practices put forth in this document.
(M)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 6 01.01.04 Memorandum of Understanding
A Memorandum of Understanding (MOU) or a similar
contractual document should be established between the operating law enforcement agency and the school district. This document will assist in developing program goals and evaluating the program to assess the success in meeting identified goals.

Example MOU topics include but are not limited to:
 Defining the roles and responsibilities of formal school discipline (M)
o SROs should not be administering formal school
discipline such as detentions, suspensions, or
expulsions. These decisions are the sole
responsibility of the school personnel.
 SROs act in accordance with the recommended TRIAD
roles (R)
o As a law enforcement officer, the SRO shall abide by
federal, state, and local laws.
o As an informal counselor/mentor, the SRO may
address school violations in an effort to positively
impact student behavior and character and may
refer students to school personnel as necessary.
o As a teacher/classroom presenter, the SRO may
address school-related education law to positively
impact student behavior and character to mitigate
more serious behaviors.
 Defining roles and expectations pertaining to decision to arrest (M)
o According to federal law, the responsibility and
decision to arrest lies solely with the SRO, respective to state law, local ordinances, and the SRO’s
departmental standard operating procedures or
standing order.
o The SRO’s continual collaboration with school
personnel and his or her understanding of each
student’s needs may impact the decision to arrest
but the responsibility is that of the SRO alone.
 Chain of Command (M)
o The SRO shall abide by the law enforcement
agency’s policies pertaining to the chain of
command.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 7  Uniform Use (M)
o SROs must be clearly identified as law enforcement.

The uniform apparel and law enforcement
equipment shall be defined by the agency policy. If a
“soft” uniform is agreed upon, the uniform should not
detract from clearly identifying the SRO as law
enforcement.
 Weapons Storage (M)
o Normal duty gear is to be defined by the SRO’s
agency policies.
o In the event additional weapons or gear is to be
utilized, the storage of these items shall be defined
by the law enforcement agency
 Use of Less Lethal Tools (R)
o The SRO should abide by agency policies pertaining
to the use of less lethal devices.
o If there is a desired deviation from the policies, the cost, storage, and use must be agreed upon.
 Sharing of Information (M)
o SROs and school personnel shall share
information in accordance with their respective
state laws.
o Access and use of school camera footage, bodyworn cameras, student database information, and any other information sharing practices should be
defined by the MOU.
 Documentation and Reporting Requirements (M)
o The SRO shall be under the immediate
supervision and direction of his or her law
enforcement agency.
o The agency policies shall identify the
documentation and reporting procedures to be
used.
o Any documentation requested by the school
personnel shall be addressed by the MOU or
similar contractual document.
 Expenses (M)
o The salary (including overtime), benefits, and
equipment costs should be established in the MOU
and/or in an agreed upon contract between the law
enforcement agency and the school district.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 8  Office Space and Office Supplies (R)
o A clearly defined location should be established for
the SRO to conduct school and law enforcement
business.
o Due to the nature of law enforcement related to
juveniles, a dedicated location with a closable door
should be available.
o Access to office supplies such as paper, a printer,
computer, etc. should be addressed in the MOU.
 Hours on Campus (M)
o Clearly defined expectations of the hours the SRO
shall spend on campus should be agreed upon by
the operating law enforcement agency and the
school district.
o Due to the nature of law enforcement, there may be
a need for the SRO to be out of the building(s) for a
period of time.
o This should be understood and agreed upon by all
parties involved.
 Day-to-Day Duties (M)
o As formerly described, the SRO shall utilize the
TRIAD model: Law Enforcement (LEO), Teacher
(Guest Speaker) and Informal Counselor (Mentor).
o Quality law enforcement practices should be
assumed and agreed upon.
o The SRO should not be assigned to specific
locations or duties on a daily basis, but rather be
available to assist teachers, administrators, and
students when requested and as consistent with
their roles as a law enforcement officer, informal
counselor/mentor, and teacher/classroom presenter.
o The expectations of the SRO’s daily duties must be
agreed upon by the law enforcement agency and the
school district.
 Extracurricular Activities (R)
o There is a demonstrated benefit to the SRO’s
involvement in extracurricular activities.
o Expectations of attendance and compensation
should be agreed upon by the law enforcement
agency and the school district.

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 9 SECTION TWO | SELECTION

02.01.00 The SRO Selection Process Compliance

02.01.01 The SRO Selection Process
 There shall be a clearly defined process of selection for the SRO to be employed.
 This selection process shall be agreed upon
between the agency and the school administration.
 The school administration shall be involved in the
selection process, including but not limited to, the
interviews of SRO candidates.
(M)

02.01.02 Experience
 It is recommended that the officer selected have at
least three (3) years of law enforcement experience.
 This level of experience will help the officer obtain credibility among the school faculty, students, and
parents.
 This level of experience will also allow the SRO to
have a greater understanding of the local agency’s
policies and procedures.
(R)

02.01.03 Number of SROs Selected
 It is recommended that each school have at least
one (1) SRO on campus.
 It is recommended that the determination of the
number of SROs needed for each school be based
on but not limited to:
o School enrollment
o Discipline history
o Number of campus buildings
o Campus acreage
o Calls for service
o Location in the community
o Number of non-sworn safety personnel in the
building
(R)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 10 02.01.04 School Climate
 Several factors pertaining to school climate should
be considered when considering the best SRO fit:
o Student enrollment
o School discipline history
o Cultural and minority representation
o Special Education programs
o English as a Second Language programs
(R)

02.01.05 Willingness in Developing Youth
 Effective SROs have a willingness to engage with
youth.
 This can be demonstrated in the candidate’s
previous participation in youth or community policing
programs.
(M)

02.01.06 Communication Skills
 Must have excellent verbal and written
communication skills.
(M)

02.01.07 Probationary Period
 The selected SRO should have a probationary
period agreed upon by the operating law
enforcement agency and the school district to allow
all parties to best determine if the selected officer is a proper fit for the school community.
(R)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 11 SECTION THREE | TRAINING

03.01.00 Training Standards Compliance

03.01.01 Importance
 The SRO must be specially trained in school-based
policing, as the duties and responsibilities of an SRO
are inherently different than that of other law
enforcement specialties.
 At a minimum, the SRO should attend annual
training related to school safety topics. These topics
may include, but are not limited to:
o Crisis Planning
o Active Threat Response
o Adolescent Mental Health
 Such trainings enhance and maintain the relevancy
of the SRO’s skill set.
 It is recommended that a school administrator also
attend with his or her SRO to support ongoing
collaboration.
 Some opportunities for these training programs
include SRO conferences such those offered by the
National Association of School Resource Officers
and its affiliated state associations.
(M)

03.02.00 The Basic SRO Training Course Compliance

03.02.01 Basic SRO Course
 The SRO should complete a foundational schoolbased policing course, such as the NASRO Basic SRO Course, prior to being assigned.
 If it is not practical for the new SRO to complete a
foundational school-based policing course prior to
the assignment, the new SRO shall complete a
foundational school-based policing course within one
(1) year of beginning the assignment.
(M)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 12 03.02.02 The TRIAD Approach
 SROs must be trained to utilize a TRIAD approach to
school-based policing.
 This concept includes understanding and applying
the principles of each TRIAD component: Law
Enforcement (LEO), Teacher (Guest Speaker) and
Informal Counselor (Mentor).
 The specifics of each component include but are not
limited to:
o To be an effective law enforcement officer
(LEO) in a school environment, the SRO
should have a working knowledge of:
 Constitutional and state law
 Armed response
 Crime prevention and mitigation
 Interview and interrogation
 Investigations
 Crime Prevention Through
Environmental School Design
 Patrol operations (high visibility)
 Advocacy within the juvenile justice
system
 Mandatory reporting
o To be an effective teacher/guest speaker, the
SRO should be capable of delivering lawrelated education lessons on topics such as:
 Crime prevention
 Social media
 School safety
 Victimization
 Laws pertaining to students
 Safe traffic stops
 Driver safety
 Decision making
 Other topics requested by staff/parents
o To be an effective informal counselor/mentor,
the SRO should be properly trained in:
 Mentoring
 Crime prevention
 Empowering youth
 Resiliency and overall wellness
 Adolescent brain development
 Social and emotional development
 Recognizing and supporting diversity
 Improving youth decision-making skills
 Trauma-informed practices
(M)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 13 03.02.03 School Administration Policies & Procedures  Additional school-related training topics in support of an effective SRO program should be ongoing.
 Examples of these include but are not limited to:
o Structure of the school’s discipline policy.
o Family Educational Rights and Privacy Act
(FERPA) and other school-related law issues.
o Working with special needs students and the
special education department within the
school.
o A school-utilized behavioral intervention
program.
(R)

03.03.00 The Advanced SRO Training Course Compliance

03.03.01 Advanced SRO Course
 It is recommended that the SRO successfully
complete an advanced level school-based policing
course approximately one (1) year after successful
completion of the basic foundational course.
 This course will build on and further expand the
SRO’s foundational knowledge and skills.
(R)

03.04.00 Single Officer Rapid Deployment Training Compliance

03.04.01 Single Officer Rapid Deployment Training
 The SRO should successfully complete bi-annual
training for single officer rapid deployment.
 This training should provide appropriate methods for
the SRO to be able to respond to active assailants or
threats in the school.
(R)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 14 SECTION FOUR | COLLABORATION

04.01.00 Collaboration Between Law Enforcement and
the School Community Compliance

04.01.01 Definition
 A successful SRO program must have a strong
collaboration between the law enforcement agency
and the school community.
 Although various elements of the job are defined by
each party, it is important that these elements are
clearly defined and communicated.
(M)

04.01.02 Defining Roles of the School Administrator and the SRO  It is recommended that each party establish the role
of the school administrator and the SRO in this
partnership to ensure that all district policies,
department policies, local laws, state laws, and
federal laws are followed.
 It is recommended that a school administrator who
will be partnering with the SRO also complete Basic
and other school-based policing courses with the
SRO.
o This strengthens the collaboration and the
understanding of this partnership in support
of an effective SRO program.
 Effective partnerships can be supported through but
are not limited to the following methods:
o The MOU and its annual review for program
improvements and updates.
o Shared trainings to best understand school
and law practices, policies and programs.
o Regular meetings to review existing and
potential school-related issues.
o Teachers correctly following the school’s
chain of command and the SRO correctly
following agency’s chain of command.
o Established sharing of information on policies
and procedures.
o Regular review of CPTED at the school.
o Crisis management planning and practice.
o Community education in school-related law
concerns of parents.
(R)

© 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 15 04.01.03 The Administration’s Role in SRO Selection
 The selection process of the SRO must include both
the law enforcement agency and the school
administration.
 Factors of selection should include, but are not
limited to:
o School enrollment
o Discipline history
o Number of campus buildings
o Campus acreage
o Calls for service
o Location in the community
o Number of non-sworn safety personnel in the
building

04.01.04 The Administration’s Role in SRO Evaluation
 The effectiveness of the individual SRO must be
based on the established performance goals agreed
upon by the law enforcement agency and the school
district.
 An evaluation tool specific to the position of the SRO must be developed and utilized.
o This will include evaluating the relationship
between the SRO and the school
administration and the effectiveness of the
SRO related to the training and expectations.
o This tool should include language specific to
the law enforcement agency’s expectations
as well as the school district’s expectations.
(M)

04.01.05 The Administration’s Role During the SRO
Probationary Period
 The school administration shall participate in the
probationary review of the selected SRO as agreed
upon by the agency and the school district to allow
all parties to best determine if the selected officer is a proper fit for the school community.
(M)

Item 9.h.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Andrew Perez, Planning Manager
SUBJECT: Temporary Use Permit 24-004; Authorization for Sale of Beer and Wine at the 2024 Summer Concert Series, an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary DATE: June 11, 2024
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit No. 24-004 to allow the sale of beer and wine at the 2024 Heritage Square Park Summer Concert Series and approving a waiver of fees; and
2) Find the action exempt from the California Environmental Quality Act pursuant to Section 15304 of the CEQA Guidelines.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The applicant, Arroyo Grande Rotary Club (AGRC), is requesting a waiver of application fees for the Temporary Use Permit, which totals $405.30. Due to the annual nature of the request, the staff time required to review the proposal and prepare the staff report is minimal compared to a one-time event; therefore, it is recommended that the fee waiver request be approved. Ten percent (10%) of gross revenue from beer and wine sales will be remitted to the Recreation Services Department.

BACKGROUND:

The Summer Concert Series are annual concert events in which visitors bring their own lawn chairs and blankets to congregate on the Nelson Green at Heritage Square Park, while musical performances are conducted on the Rotary Bandstand. The Summer Concert Series is a City program, which is being organized by the Recreation Services Department for a fourth year, rather than being organized by a local sponsor. While the concerts are organized by the City, the AGRC has submitted an application for a Temporary Use Permit to allow for the sale and consumption of beer and wine at the 2024 Heritage Square Park Summer Concert Series (the “Event”). The request for alcohol sales necessitates the approval of a Temporary Use Permit by the City Council. Council approved permits for beer and wine at five previous Summer Concerts Series and no

Item 9.h.

City Council
Temporary Use Permit 24-004; Authorization for Sale of Beer and Wine at the 2024 Summer Concert Series, an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary
June 11, 2024

issues associated with the alcohol sales were reported to the Police or Community Development Departments.

The AGRC is requesting that the City Council allow the sale of beer and wine for a sixth year at the Event as an additional amenity for Event patrons. The benefits identified by the applicant include increased revenue from alcohol sales beyond those realized through the sale of hot dogs, non-alcoholic drinks, and ice cream at the Event, as well as the establishment of additional promotional opportunities with new partners.

The City may approve a temporary use permit for the sale of beer and wine at the event by operation of AGMC § 16.16.090. The City may authorize a fee waiver through the authority found in City Council Resolution 3760, adopted and approved July 13, 2004.

Staff Advisory Committee
In accordance with conditions of approval for last year’s permit, the Staff Advisory Committee (SAC) held a debrief meeting during and at the conclusion of the Event to evaluate its success. No issues with public intoxication or public health, safety, or welfare were noted and the Event was considered a success.

The SAC reviewed this year’s proposal on June 6, 2024. The SAC was in support of the project with the same conditions of approval included for the 2023 Event to ensure a safe and successful experience.

ANALYSIS OF ISSUES:

The Summer Concert Series begins July 4, 2024, and continues each Sunday through the summer, concluding on September 22, 2024, for a total of thirteen (13) events. Beer and wine sales would occur during each of the concerts, which are scheduled to occur from 1:00 PM – 3:00 PM, except for the concerts on July 4, which are scheduled from 11:00 AM to 4:00 PM. Sales and identification checks would be conducted by AGRC volunteers in accordance with the conditions of the one-day license issued by the California Department of Alcoholic Beverage Control (ABC) for each occurrence of the event. Similar to last year’s Event, the applicant is proposing to not fence off the Nelson Green, opting to use the entire lawn area for alcohol consumption during the Event.

Fencing
The need for fencing was discussed during processing of permits for Events held in previous years and it was determined that safety and public welfare will be met without fencing around the Heritage Square Park lawn area to contain the consumption of alcohol.

In accordance with requirements of the ABC, the public sidewalks surrounding the lawn area act as the boundary for alcohol consumption and therefore fencing is not required.

This boundary will be enforced with appropriate signage and trained personnel provided by AGRC serving as security. Recreation Services staff will be on site during the events

Item 9.h.

City Council
Temporary Use Permit 24-004; Authorization for Sale of Beer and Wine at the 2024 Summer Concert Series, an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary
June 11, 2024

and will ensure the signage is posted and to help address any monitoring issues that arise.

Attendee Identification
The Event does not require the sale of entrance tickets like other events where alcohol is consumed. Therefore, the screening process to ensure lawful consumption is necessary.

This will be closely monitored by AGRC volunteers to ensure only persons of legal drinking age will be able to buy and consume beer and wine. The AGRC will provide volunteers that have completed the Responsible Beverage Service Training Program from the ABC to prevent service of alcohol to underage or intoxicated individuals and monitor for proper identification.

Trash and Recycling
If authorized for the sale of beer and wine, the potential for increased trash and recyclable material increases. Therefore, the applicant will be required to add at least 5 more temporary/cardboard trash and recycling receptacles, with a trash liner, and place them at appropriate locations around the park. At the end of each event, the bags of material will be placed near the sidewalk so that City Public Works staff can more easily load them onto a truck for disposal and recycling.

Fee Waiver
The applicant has requested the application fees associated with the Temporary Use Permit application be waived. If approved, this waiver would result in the loss of $405.30 in revenue. Revenue from application fees is used to offset the costs of processing the application. City Council approved fee waiver requests in 2019, and 2021-2023. Although the time necessary to process the application the first year was higher, subsequent years have resulted in less impact to personnel resources due to increased familiarity with the event. The Community Development Director has the authority to waive the fees for TUPs that do not require City Council approval when an event is operated solely by volunteers and one hundred percent of net revenues are donated to a charitable cause.

The Event will be staffed by AGRC volunteers and as a 501(c)3 organization, all proceeds will go towards philanthropic endeavors in the community. The Event also provides additional exposure of the City and its amenities to the public. It also brings attendees to the Village, which can have a direct economic benefit to businesses in the area, and the City through increased sales, and therefore, increased sales tax revenue. While this exposure cannot be directly quantified, it remains beneficial. Lastly, the City Council has previously established through adoption of Resolution No. 3760 (Attachment 2) the blanket waiver of application fees for similar annual events. Although this event is not identified on this list, the evolving annual nature of the event may be deemed consistent with the intent of the policy. The City Council has elected to waive the fees for this application for the previous four occurrences of the event.

Item 9.h.

City Council
Temporary Use Permit 24-004; Authorization for Sale of Beer and Wine at the 2024 Summer Concert Series, an Application Fee Waiver; Location Heritage Square Park; Applicant – Arroyo Grande Rotary
June 11, 2024

ALTERNATIVES:

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

1. Adopt the Resolution approving Temporary Use Permit 24-004, including an authorization to waive the application fee;

2. Modify and adopt the Resolution approving Temporary Use Permit 24-004, but do not authorize waiver of the application fee;

3. Modify as appropriate and adopt the Resolution, approving Temporary Use Permit 24-004;

4. Do not adopt the Resolution; or

5. Provide other direction to staff.

ADVANTAGES:

The Summer Concert Series is a well-attended event that holds a special place in the heart of many in the community. Beer and wine sales at the Event will generate revenue for the AGRC and the Recreation Services Department to continue their valuable contributions to the community. Additionally, the sale of beer and wine at the Event would provide attendees an additional beverage option during their time at the concerts.

DISADVANTAGES:

None identified due to the success of previous Events when beer and wine was sold.

ENVIRONMENTAL REVIEW:

In compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land. Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Proposed Resolution

2. City Council Resolution 3760

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 24-004 TO ALLOW THE SALE OF BEER AND WINE AT THE
2024 HERITAGE SQUARE PARK SUMMER CONCERT SERIES
AND APPROVING A WAIVER OF FEES; APPLIED FOR BY THE

ARROYO GRANDE ROTARY CLUB
WHEREAS, the 2024 Heritage Square Park Summer Concert Series (the “Event”) is a City program organized by the Recreation Services Department; and WHEREAS, the Arroyo Grande Rotary Club (AGRC) have requested permission for the sale of beer and wine at the Event; and
WHEREAS, beer and wine sales organized by the AGRC during the 2018, 2019, 2021-2023 Events were successfully implemented; and
WHEREAS, the AGRC submitted a request to waive the $405.30 application fee; and WHEREAS, the purpose of the Temporary Use Permit is to ensure the Event is conducted in a manner that is compatible with the surrounding area; and WHEREAS, members of the AGRC will be responsible for monitoring identification and consumption of alcoholic beverages during the Event; and WHEREAS, it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

Specifically, a Class 4 exemption, applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) Further, none of the exceptions to the Class 4 exemptions set forth in State CEQA Guidelines section 15300.2 apply; and WHEREAS, the City Council finds, after due study and deliberation, the following circumstances exist:

NOW, THEREFORE, BE IT RESOLVED THAT:

Section 1. Recitals. All recitals above are true, correct, and incorporated herein by reference.

Section 2. Findings. The City Council finds, in accordance with the requirements of Arroyo Grande Municipal Code section 16.16.090(E), after due study and

RESOLUTION NO.

PAGE 2
deliberation, the following circumstances exist:

Temporary Use Permit Findings:

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

The operation of the requested use at the location proposed and within the time periods specified will not jeopardize, endanger or constitute a menace because the AGRC will have trained personnel monitoring individuals purchasing and consuming alcohol to prevent disruptions to the public health, safety, or general welfare.

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

The proposed site is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site due to the Event being monitored by AGRC personnel.

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

The proposed site is adequately served by South Mason and Nelson Streets, which are of significant width and improvements to accommodate the kind and quantity of traffic that the temporary use will generate.

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

Adequate temporary parking to accommodate vehicular traffic to be generated is available because Heritage Park is located in a commercial district that has ample public parking for visitors.

Section 3. Temporary Permit Approval. The City Council of the City of Arroyo Grande hereby approves Temporary Use Permit 24-004, authorizing the sale of beer and wine at the 2024 Heritage Square Park Summer Concert Series as presented to the City Council on June 11, 2024, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

RESOLUTION NO.

PAGE 3
Section 4. Fee Waiver Approval. Based on the authority found in Resolution No. 3760, adopted July 13, 2004, the City Council of the City of Arroyo Grande hereby approves the fee waiver request for the Temporary Use Permit application processing fee.

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 11 th day of June 2024.

RESOLUTION NO.

PAGE 4
_________________________________________

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 5
E X H I B I T " A"

CONDITIONS OF APPROVAL FOR
TEMPORARY USE PERMIT NO. 24-004
This approval authorizes the sale of beer and wine from 11:00 AM – 4:00 PM on July 4, 2024, and from 1:00 – 3:00 PM for the remainder of the 2024 Heritage Square Park Summer Concert Series.

General Conditions

1. The Arroyo Grande Rotary Club (AGRC) shall ascertain and comply with all State, County and City requirements as are applicable to this project, specifically all Department of Alcoholic Beverage Control requirements.

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

3. The AGRC shall comply with all the conditions of the City Council Resolution adopted on June 11, 2024, approving temporary use permit no. 24-004.

4. To the extent permitted by law, Applicant shall defend, indemnify and hold harmless the City of Arroyo Grande, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside, or void any permit or approval for this project authorized by the City, including (without limitation) reimbursing the City its actual attorney’s fees and costs in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its choice. The Applicant shall reimburse the City for any court and attorney's fees which the City may be required to pay as a result of any claim or action brought against the City related to this permit or approval. Although the Applicant is the real party in interest in an action, the City may, at its sole discretion, participate at its own expense in the defense of the action, but such participation shall not relieve the Applicant of any obligation under this condition.

5. The AGRC shall monitor alcohol sales to ensure alcoholic beverages are served to responsibly behaving persons over the age of twenty-one (21).

Volunteers shall be trained to check identification of all persons buying alcohol for verification that the purchaser is over the age of twenty-one (21).

6. Consumption of alcoholic beverages shall be limited to the Heritage Square Park lawn area, and AGRC shall monitor the lawn area to ensure no alcohol consumption occurs beyond the bounds. The playground area shall be excluded from the consumption area. Appropriate signage provided by the AGRC shall be posted outlining these rules and restrictions.

7. Requests to continue alcoholic beverage sales in future years shall be made through the Temporary Use Permit process.

8. The AGRC shall utilize an easily identifiable (i.e. colored or similar) glass for the sale of alcohol to help ensure attendees are not bringing their own alcoholic beverages.

9. The Staff Advisory Committee shall conduct a debriefing following the conclusion of the first few events to evaluate the success of the event.

RESOLUTION NO.

PAGE 6

10. AGRC shall remit ten percent (10%) of gross revenue from beer and wine sales to the Recreation Services Department. AGRC shall remit the payment to the Recreation Services Department by December 31, 2024.

Public Works Department Conditions

11. The AGRC is responsible for providing trash bags, temporary cardboard trash receptacles, and enough restroom facilities to serve the event. Any supplies the Public Works Department may need to provide must be reimbursed by the AGRC. At the end of the event, AGRC shall place all trash bags near the sidewalk for City Public Walk disposal and recycling.

12. The AGRC shall have an individual designated to periodically inspect the restrooms and areas around food vendors and waste containers. That individual shall be responsible for maintaining the cleanliness of these areas and gathering and disposing of all debris.

13. The AGRC shall reimburse the City for electrical costs associated with the event.

14. The AGRC shall reimburse the City for the costs of any Public Works staff services required for this event, including, but not limited to, restroom maintenance, trash, etc.

15. The AGRC shall remove any tape placed on streets, parking areas, and grass after the event.

16. The ARGC shall flag all sprinkler heads on turf and lawn areas to prevent damage. The AGRC shall reimburse the City for any damage to the irrigation system at the park.

17. The AGRC shall abide by all terms and conditions of the Park Use Permit issued by the Recreation Services Department.

Engineering Division Conditions

18. Restroom facilities, barricades, and signing shall be provided by the AGRC as required.

19. The AGRC shall provide a $1,000,000 comprehensive general liability insurance policy naming the City as additional insured by June 30, 2024.

20. The AGRC shall reimburse the City for the costs of Engineering Division services and any other City services required for this event.

Building and Life Safety Division Conditions

21. All food booths must comply with the Fire Department guidelines and must have County Health Department approval. The AGRC will inform booth applicants of Fire Department guidelines and will ensure total compliance of booth operators. The AGRC will not allow non-compliant booths to operate.

22. The project shall comply with the most recent edition of the California State Fire and Building Codes and the Uniform Building and Fire Codes as adopted by the City of Arroyo Grande. Specifically, all temporary-wiring provisions of the N.E.C. must be met.

23. Emergency access must be maintained to the satisfaction of the Building Official and Fire Chief. A detailed chart or map will be provided to Building and

RESOLUTION NO.

PAGE 7
Life Safety Division and Fire Department for approval prior to the event, showing placement of all booths, to include actual dimensions of access pathways for fire apparatus and emergency vehicles.

24. The use of generators must be reviewed and approved by the Building Official.

25. The AGRC shall identify an individual to act as liaison with the Fire Department for the purpose of maintaining life and safety.

Police Department Conditions

26. All temporary "No Parking" signs shall be posted a minimum of 48 hours prior to event setup.

RESOLUTION NO. 3760

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE ESTABLISHING POLICIES TO WAIVE PERMIT

APPLICATION FEES FOR C'ERTAIN ANNUAL TEMPORARY USE

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

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

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

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

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

AYES: Council Members Runels, Dickens, Lubin and Mayor Ferrara NOES: None
ABSENT: Council Member Costello
the foregoing Resolution was passed aRd adopted this 13th day of July 2004. w_________
ATTACHMENT 2

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

DEPUTY CITY CLERK
APPROVED AS TO CONTENT:

STEV ADAMS,
Z~

CITY MANAGER
APPROVED AS TO FORM:

I

RESOLUTION NO. 3760

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

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

KELLY Eli ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI

DEPUTY CITY CLERK

Item 9.i.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager / Public Works Director BY: Shannon Sweeney, City Engineer
SUBJECT: Consideration of Acceptance of the Five Cities Fire Authority Station #1 Emergency Generator Replacement Project, PW 2021-09
DATE: June 11, 2024
RECOMMENDATION:
1) Accept the project improvements as constructed by Electricraft, Inc. in accordance with the plans and specifications for the Five Cities Fire Authority (FCFA) Station #1 Emergency Generator Replacement Project, PW 2021-09;
2) Direct staff to file a Notice of Completion; and
3) Authorize release of retention thirty-five (35) days after the Notice of Completion has been recorded if no liens have been filed.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The final contract and change orders resulted in a total project cost of $462,357. The total construction costs consist of $450,451 for the direct contract amount and $11,906 for field change orders (contingency costs).

BACKGROUND:

On October 12, 2021, the City Council approved an Agreement for Consultant Services with Salas O’Brien for design and construction phase services. This includes continuous construction inspection, the replacement of the permanent emergency generator and associated transfer switches, and installation of a properly sized connector for a portable generator as a backup to the emergency generator at Fire Station #1.

During the design phase of the project, the existing onsite emergency generator became completely non-functional, rendering the Fire Station #1 building with no back-up power.

On July 8, 2022, Fire Station #1 lost power. The power failure impacted the ability to provide emergency 9-1-1 services to the community. The power outage affected:
 Apparatus Bay Doors –Crews had to climb ladders in the dark to manually disable the bay door openers to gain access to emergency response vehicles.

Item 9.i.

City Council
Consideration of Acceptance of the Five Cities Fire Authority Station #1 Emergency Generator Replacement Project, PW 2021-09
June 11, 2024

 Station Alerting – All communications were shut down, which impacted the crew’s ability to receive emergency calls for service.
 Lighting – There was no lighting throughout the entire facility.  Communications/IT Server room – Without power, battery powered equipment (portable radios, thermal imaging cameras, etc.) could not be charged.

While power was restored to the station within minutes and no negative results occurred because of this specific incident, the lack of a working generator created a serious risk to the community. City staff immediately installed a portable generator to provide minimum power needs during a power outage.

On March 20, 2023, the City awarded a construction contract for the generator and other equipment to Electricraft, Inc. to complete the FCFA Emergency Generator Replacement Project, PW 2021-09 in the amount of $462,357.

On March 28, 2023, the City Council adopted a Resolution determining that award/execution of a contract for the FCFA Emergency Generator Replacement Project, PW 2021-09, has terminated the emergency action. Termination of the emergency action still allows Electricraft, Inc. to continue to operate pursuant to the terms of the executed contract.

The project was deemed substantially complete on May 1, 2024.

ANALYSIS OF ISSUES:

The FCFA Emergency Generator Replacement Project consisted of removing the existing non-working emergency generator and replacing it with a new emergency generator. The new emergency generator will start automatically after a power outage and supply power to the entire station including the server room and the station alerting system.

The FCFA Emergency Generator Replacement Project was completed to City staff’s satisfaction. The generator and transfer switches are fully operational. No deficiencies have been noted by City or FCFA staff.

ALTERNATIVES:

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

1. Accept the FCFA Emergency Generator Replacement Project;

2. Do not accept the project;

3. Accept the project but do not authorize the release of retention; or

4. Provide other direction to staff.

ADVANTAGES:

The project is complete and accepting the improvements allows staff to close out the project. The new generator at Fire Station #1 starts upon failure of utility power and

Item 9.i.

City Council
Consideration of Acceptance of the Five Cities Fire Authority Station #1 Emergency Generator Replacement Project, PW 2021-09
June 11, 2024

provides electricity to the entire station, including server room and station alerting system.

Continuous power at this critical first responder location helps to protect the community in the event of a power failure.

DISADVANTAGES:

No disadvantages have been identified in accepting this project.

ENVIRONMENTAL REVIEW:

The FCFA Emergency Generator Replacement Project was previously determined to be categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. (State CEQA Guidelines, § 15302.)
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. Notice of Completion - Emergency Generator Replacement Project

ATTACHMENT 1

Item 9.j.

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: June 11, 2024
RECOMMENDATION:

Authorize the City Manager to fully execute a temporary construction easement (TCE) for certain real property, more particularly described as Assessor Parcel Number 007-481- 011, that is necessary for the Traffic Way Bridge Replacement Project.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Adequate funding for right-of-way acquisition costs was appropriated in the FY 2023-25 CIP Budget. The cost associated with this TCE is $9,900. 88.53% of the cost for securing this TCE is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing this TCE now 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.

Item 9.j.

City Council
Consider Traffic Way Bridge Temporary Construction Easement Execution June 11, 2024

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.

On May 14, 2024, the City Council fully executed temporary construction easements with the six property owners that had signed agreements prior to that meeting. Negotiations continued with the remaining three property owners. As of June 5, 2024, one additional property owner has signed a TCE agreement.

Negotiations continue with the two remaining property owners.

The City Council authorized a Resolution of Necessity on April 23, 2024 to pursue eminent domain if negotiations are unsuccessful.

ANALYSIS OF ISSUES:

The attached TCE has already been signed by the property owner. Authorizing staff to execute this TCE allows for access to and staging for the Traffic Way Bridge Replacement Project.

ALTERNATIVES:

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

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

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

3. Provide other direction to staff.

ADVANTAGES:

Securing this TCE allows for access to and staging for the Traffic Way Bridge Replacement Project. 88.53% of cost for securing this TCE is provided through the Highway Bridge Program, which is funding a majority of this project. Fully executing this TCE 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 this TCE, 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,

Item 9.j.

City Council
Consider Traffic Way Bridge Temporary Construction Easement Execution June 11, 2024

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 007-481-011

APN: 007-481-011 City of Arroyo Grande/Traffic Way Bridge/Kaloosian/Agreement 2024-05-30

PARCEL NO.: 007-481-011
PROJECT: City of Arroyo Grande - Traffic Way Bridge
OWNER: Raffi and Minas Kaloosian
GRANTOR’S PROPERTY: 125/135 Traffic Way
Arroyo Grande, CA 93420

TEMPORARY CONSTRUCTION EASEMENT AGREEMENT
THIS AGREEMENT(“Agreement”) is made and entered into by and between Raffi M. Kaloosian, a married man as his sole and separate property; and Minas Kaloosian, a single man, as joint tenants (hereinafter collectively called “Seller”/“Grantor”), and the
City of Arroyo Grande, a California municipal corporation (hereinafter called “Buyer”/ “City”).

The Parties hereto have executed this Agreement on the dates set forth below next to their respective signatures. This Agreement shall be effective as of the date, following all legally required notices and hearings, this Agreement has been approved by Buyer’s governing body or its delegated representative and signed by all Parties (“Effective Date”).

Seller and Buyer may collectively be referred to as the parties, and agree as follows:

An instrument in the form of a Temporary Construction Easement Deed (“Easement Deed”) covering the property particularly described therein (“Easement Area”), has been executed concurrently with this Agreement and delivered to City representatives.

In consideration of which, and other considerations hereinafter set forth, it is mutually agreed as follows:

1. The parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for said document and shall relieve the City of all further obligation or claims on this account, or on account of the location, grade or construction of the proposed Traffic Way Bridge Replacement Project (“Project”).

2. The City shall:

A. PAYMENT - Pay to the order of the Grantor the sum of Nine Thousand Nine Hundred Dollars ($9,900) as consideration in full for the property interests described in the Easement Deed, for the loss, replacement and moving of any improvements, and for entering into this Agreement, which includes, without limitation, full payment of just compensation for any eminent domain related compensation claims, claims for inverse condemnation or unreasonable pre-condemnation conduct, attorneys’ fees, costs and interest in complete settlement of all claims (known and unknown), causes of action and demands of Seller against the Buyer because of Buyer’s purchase of the property rights conveyed by the Easement Deed, and for any and all claims (known and unknown) arising from or relating to the purchase and sale which is the subject of this Agreement.

Said sum shall be paid within thirty days of the date of City acceptance and execution of this Agreement.

DocuSign Envelope ID: 5AB5ECB8-AB99-43F8-8CF0-67D4E23AA451 ATTACHMENT 1

APN: 007-481-011 City of Arroyo Grande/Traffic Way Bridge/Kaloosian/Agreement 2024-05-30

B. RECORDATION OF INSTRUMENT - Accept the Easement Deed and may, at City’s sole discretion, cause the same to be recorded in the office of the San Luis Obispo County Recorder.

C. MISCELLANEOUS COSTS - Pay any and all transactional closing costs and recording fees incurred in this transaction.

D. CLEARANCE OF BONDS, ASSESSMENTS, OR DELINQUENT TAXES - Have the authority to deduct and pay from the amount shown in Clause 2.A. above any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which the deeds record, together with penalties and interest thereon, and/or delinquent and unpaid nondelinquent assessments which have become a lien as of the date of this Agreement.

E. PROPERTY CONSTRUCTION AND RESTORATION – City shall, upon completion of construction, generally restore the Easement Area to a comparable or better condition as that which existed prior to City’s project construction, to the extent reasonably practical, in accordance with the provisions of the Easement Deed and the construction plans for the Project, on file in City offices. Creek vegetation within the Easement Area will be restored with native vegetation in accordance with required Project permit conditions.

City authorizes the installation of two signs that may be erected by Grantor, at Grantor expense, on Grantor’s property, which is commonly referred to as 125-135 Traffic Way, Arroyo Grande, AP# 007-481-011 (“Grantor’s Property”). One sign shall be permitted for temporary installation at the Bridge Street driveway entrance of Grantor’s Property, showing Grantor’s business name. Said sign shall not exceed a size of 3’ X 5’ and shall be removed upon completion of Project construction. The second sign shall be permitted and affixed on the Bridge Street-facing side of Grantor’s building on Grantor’s Property, and shall not exceed a size of 4’ X 6’. Grantor shall submit sign specifications for each sign to City before creating and erecting said signs, for City approval, which shall not be unreasonably withheld and shall be issued within 60 days following sign design submittal to City. City sign permits shall be issued at no cost to Grantor.

Access to Grantor’s Property from Traffic Way shall be consistently maintained throughout the Project's duration. City agrees to provide Grantor with a minimum of 72 hours’ advance notice prior to commencing any construction on the sidewalk conform that would temporarily affect Grantor’s access to Grantor’s Property. Any temporary restrictions on access through Grantor’s Traffic Way driveway shall not exceed 72 hours and shall be restored at the earliest feasible opportunity.

With regard to Grantor’s Traffic Way frontage that will not be improved as part of the City’s Traffic Way Bridge Replacement Project, City hereby grants a waiver that shall exempt Grantor from ADA compliant modification requirements to the curb, gutter and driveway along the Traffic Way frontage of Grantor’s Property that could otherwise be mandated and triggered by future modifications to Grantor’s Property. This waiver will take effect upon execution of this Agreement and will remain in effect for the duration of the Grantor’s ownership of Grantor’s Property; provided however, that this waiver shall automatically terminate in the event 1) Grantor sells Grantor’s Property; or 2) after the City completes additional Traffic Way improvements along the frontage of Grantor’s Property. The waiver does not apply if Grantor makes improvements to Grantor's Property that expands buildings, adds new structures, or demolishes and reconstructs the existing structures on Grantor’s Property. .

DocuSign Envelope ID: 5AB5ECB8-AB99-43F8-8CF0-67D4E23AA451

APN: 007-481-011 City of Arroyo Grande/Traffic Way Bridge/Kaloosian/Agreement 2024-05-30

F. INDEMNIFICATION - Indemnify and hold harmless the Grantor from any and all claims, damages, costs, judgments or liability proximately caused by City or its officers, employees, contractors or agents specifically arising from City’s construction and restoration work within the Easement Area during the temporary easement period specified in the Easement Deed.

3. The Grantor:

A. LEASE INDEMNIFICATION - Warrants there are no oral or written leases on all or any portion of the Easement Area or if there are such leases, Grantor agrees to hold the City harmless and reimburse City for any and all of its losses and expenses occasioned by reason of any lease encumbering the Easement Area. Grantor shall provide City use of the Easement Area free of any leases that may conflict with City’s rights under the Easement Deed provisions.

B. TITLE INDEMNITY AND WARRANTY - In consideration of the City waiving requirements to clear any defects and imperfections in all matters of record title, Grantor indemnifies and holds the City harmless from any and all claims that other parties may make or assert on the title to the Easement Area. Grantor’s obligation to indemnify the City shall not exceed the amount paid to the Grantor under this Agreement. Grantor hereby represents and warrants that he/she/they are the sole vested owners of the Easement Area, holding all ownership and possessory rights, and are the authorized signatories to grant the easement rights referenced in this Agreement and the Easement Deed without conflict or claims from other parties.

C. SUPPLEMENTAL FORMS - Agrees to provide all required supplemental forms necessary to complete this transaction, including a W-9 Form required for payment processing.

D. GRANTOR’S KNOWLEDGE OF THE ENVIRONMENTAL CONDITIONS OF THE PROPERTY – Hereby represents and warrants that to the best of Grantor’s knowledge and belief, throughout the period of ownership by Grantor, there has been no spill, discharge, release, cleanup or contamination of or by any hazardous or toxic waste or substance used, generated, treated, stored, disposed of or handled by the Grantor, its employees, and/or agents on or around the Easement Area. Further, Grantor agrees to disclose to the City of Arroyo Grande, prior to the close of escrow, all studies, reports, and investigations, known to Grantor, concerning any pollution, toxic building materials or toxic hazardous substances or wastes located at, on, or under the Easement Area.

4. The Parties agree:

A. ARTICLE HEADINGS - Article headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants and conditions of this Agreement.

B. COMPLETE UNDERSTANDING - This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions, and preliminary agreements or understandings, written or oral.

This Agreement may not be amended except in writing by the parties hereto or their successors or assigns.

C. CITY COUNCIL APPROVAL - This Agreement is subject to and conditioned upon approval by the Arroyo Grande City Council. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity.

DocuSign Envelope ID: 5AB5ECB8-AB99-43F8-8CF0-67D4E23AA451

APN: 007-481-011 City of Arroyo Grande/Traffic Way Bridge/Kaloosian/Agreement 2024-05-30

D. TITLE VI CIVIL RIGHTS ACT COMPLIANCE - The parties to this contract shall, pursuant to Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT-Non-Discrimination Assurance requiring compliance with Title VI of the Civil Rights Act of 1964, 49 C.F.R. Part 21 and 28 C.F.R. Section 50.3.

No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is the subject of this contract.

E. COUNTERPARTS - This Agreement may be executed in counterparts, each of which so executed shall irrespective of the date of its execution and delivery be deemed an original, and all such counterparts together shall constitute one and the same document.

F. SUCCESSORS AND ASSIGNS - This Agreement shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto.

G. SETTLEMENT PROPOSAL - This Agreement represents Seller’s settlement proposal and is expressly subject to and contingent upon City approval. City shall not be bound to the terms and conditions herein unless and until this Agreement has been approved and executed by the appropriate City official(s) acting in their authorized capacity.

H. ELECTRONIC AND FACSIMILE SIGNATURES – In the event that the parties hereto utilize electronic or facsimile documents which include signatures, such documents shall be accepted and deemed binding to the same extent as if they bore original signatures. Documents for recordation by the County Clerk Recorder must contain original signatures.

No Obligation Other Than Those Set Forth Herein Will Be Recognized.

SELLER/GRANTOR:

Raffi M. Kaloosian, a married man as his sole and separate property; and Minas Kaloosian, a single man, as joint tenants
___________________________________ Date: ____________________________ Raffi M. Kaloosian,
___________________________________ Date: ____________________________ Minas Kaloosian
GRANTOR’S MAILING ADDRESS:

Raffi M. Kaloosian
Minas Kaloosian
135 Traffic Way
Arroyo Grande, CA 93420 Signatures continue on next page… DocuSign Envelope ID: 5AB5ECB8-AB99-43F8-8CF0-67D4E23AA451 5/31/2024 | 20:12 PDT
5/30/2024 | 15:28 PDT

APN: 007-481-011 City of Arroyo Grande/Traffic Way Bridge/Kaloosian/Agreement 2024-05-30

BUYER/CITY:

City of Arroyo Grande, a California municipal corporation By: ________________________________ Date: ____________________________ Matthew Downing
City Manager
MAILING ADDRESS OF CITY:

City of Arroyo Grande
1375 Ash Street
Arroyo Grande, CA 93420
DocuSign Envelope ID: 5AB5ECB8-AB99-43F8-8CF0-67D4E23AA451

Item 11.a.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Public Works Director BY: Nicole Valentine, Administrative Services Director
SUBJECT: Adopt Resolutions of Approval for the Fiscal Year (FY) 2024-25 MidCycle Budget Update Report and the 5-Year Capital Improvement Program Budget FY 2024-29
DATE: June 11, 2024
RECOMMENDATION:
1)Adopt a Resolution approving the Fiscal Year 2024-25 Budget and Making Appropriations for the Amount Budgeted; and
2) Adopt a Resolution approving the Fiscal Year 2024-29 Capital Improvement Program Budget and Making Appropriations for the Amount Budgeted.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The proposed Mid-Cycle Update for FY 2024-25 Budget recommends approximately $48 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items. The Consolidated General Fund budget includes approximately $30.4 million. The projected fund balance for the Consolidated General Fund at the end of FY 2024-25 is $6,762,402 or 22.2%. The 5- year Capital Improvement Program Budget allocates $46.7 million for projects, from various funding sources, over a 5-year period.

The budget as presented is balanced with the use of reserves, maintains adequate reserves at or above policy levels, and addresses several goals and priorities discussed previously with the City Council.

BACKGROUND:

Each year the City Council adopts a budget, which commits resources for the next fiscal year. The City Council adopted the FY 2023-24 and 2024-25 Biennial Budget on June 27, 2023. The biennial budget process includes updates each quarter of the first year, a MidCycle Update at the beginning of the second year that also includes appropriation of the second year budget and updates each quarter of the second year. Quarterly updates for

Item 11.a.

City Council
Adopt Resolutions of Approval for the Fiscal Year (FY) 2024-25 Mid-Cycle Budget Update Report and the 5-Year Capital Improvement Program Budget FY 2024-29 June 11, 2024

the FY 2023-24 were provided on December 12, 2023, February 27, 2024, and May 14, 2024.

On February 27, 2024, the City Council approved an update on City Council Goals and Priorities for FY 2024-25. Additionally, on April 23, 2024, the City Council provided direction on the 5-year Capital Improvement Program (CIP) budget and the 5-Year Local Sales Tax Fund Expenditures Program. On May 7, 2024, the CIP was provided to the Planning Commission for determination of consistency with the City’s General Plan. The prioritization and direction provided by the City Council at these previous meetings have been incorporated into the FY 2024-25 Mid-Cycle Budget Update.

On May 28, 2024, the City Council reviewed the preliminary FY 2024-25 Mid-Cycle Budget Update Report and provided direction to staff regarding proposed staffing requests, services and supplies requests, vehicle replacement requests, the appropriation of excess available consolidated General Fund balance, and changes related to Enterprise and Special Revenue funds. This direction was used in preparation for consideration and approval of the FY 2024-25 Mid-Cycle Budget Update Report (Attachment 1).

ANALYSIS OF ISSUES:

The proposed FY 2024-25 Mid-Cycle Budget Update Report presents a balanced budget, with excess revenues and fund balance sufficient to cover recommended work plan and capital project budget expenditures. The proposed budget includes a total of $25.1 million in revenues and $30.4 million in operating and capital budget for a net of $5.3 million more expenditures than revenues. The operating budget is balanced, with a $677,913 net operating surplus. The expenditures that exceed revenues are for one-time projects that the City has been anticipating. Fund balances accumulated over time offset the additional expenditures.

Consolidated General Fund Revenues
As shown in Chart 1, Sales and Property Taxes comprise the largest sources of revenue in the General Fund, together accounting for approximately 68% of revenue for that fund.

Given this dependence on just two revenue sources, fluctuations in the amount of taxes received can have profound impacts on the City’s ability to provide services. As long as the real estate market stays reasonably strong, property taxes are a relatively stable revenue source.