Arroyo Grande City Council
October 8, 2024

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, October 8, 2024, 6:00 p.m.

In person at:

Arroyo Grande City Council Chambers
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://arroyogrande-org.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA Please click the link above to register to join the Zoom Meeting This City Council meeting is being conducted in a hybrid in-person/virtual format. Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time. Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by registering and joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected] by 2:00 p.m. the day of the meeting. Meetings will be broadcast live on Channel 20 and streamed on the City's YouTube Channel.

CLOSED SESSION:

None.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only
None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring October 2024 as "Dating and Domestic Violence Awareness Month"

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 registering and joining the Zoom meeting utilizing the link provided below. Once in the meeting, please use the “raise hand” feature to indicate your desire to provide public comment.

Click the link below to register to join the webinar: https://arroyograndeorg.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA •
After registering, you will receive a confirmation email containing information about joining the webinar.
•
Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time.

Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Please attend in person or submit your comment via email to the City Clerk by 2:00 p.m. the day of the meeting to have it included as part of the record.

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 1 minute 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 Cash Disbursement Ratification
(VALENTINE)
Recommended Action:

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

9.b Statement of Investment Deposits for August 2024
(VALENTINE)
Recommended Action:

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

9.c Fiscal Year 2023-24 Year-End Financial Status Report (VALENTINE)
Recommended Action:

Receive and file the Fiscal Year 2023-24 Year-End Financial Status Report.

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

Approve the minutes of the City Council Meeting of September 24, 2024, as submitted.

9.e Cancellation of the December 24, 2024, City Council Meeting (DOWNING)
Recommended Action:

Cancel the second regular City Council meeting in December due to its proximity to the Christmas and New Year holidays.

9.f Temporary Use Permit 24-007 Authorizing Use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Temporary Use Permit 24-007 authorizing the use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival; and 2) Determine that this project is categorically exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

10. PUBLIC HEARINGS

10.a Approval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street (ROBESON)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a six-month lease

agreement, in substantially final form, between the City of Arroyo Grande and RE/MAX Success for the City-owned property at 214 East Branch Street, also known as Old City Hall, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Determine that the approval of a short-term lease agreement for 214 East Branch Street 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).

The lease of the property, where no development or demolition is proposed, constitute an administrative activity of the City. Alternatively, the adoption of resolution to enter a lease agreement is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment.

11. BUSINESS ITEMS
None.

12. 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.

13. 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. Page 5 of 99
Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager
SUBJECT: Cash Disbursement Ratification
DATE: October 8, 2024
RECOMMENDATION:

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

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,323,001.91 fiscal impact for the period of September 1 through September 15, 2024, that includes the following items:
 Accounts Payable Checks $858,113.47
 Payroll & Benefit Checks $464,888.44
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 review 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 and FY 2024-25 budgets.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

Item 9.a.

City Council
Cash Disbursement Ratification
October 8, 2024

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

2. September 6, 2024 – Payroll & Benefit Check Register

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090424SV TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 101730 PERS - ACTIVE MED
09/04/24 302319 M 09/04/24 HEALTH INSURANCE 145,911.49
INVOICE: 1-17646840 110.00.0000.2109.
09/04/24 302319 M 09/04/24 HEALTH INSURANCE 248.39
INVOICE: 1-17646840 100.10.4145.5131.
09/04/24 302319 M 09/04/24 ACCOUNTS RECEIVABLE - FCF 101.78 INVOICE: 1-17646840 100.00.0000.1111.
09/04/24 302319 M 09/04/24 RETIREES HEALTH INSURANCE 8,287.04 INVOICE: 1-17646840 100.10.4099.5136.
09/04/24 302319 M 09/04/24 ACCOUNTS RECEIVABLE - FCF 796.60 INVOICE: 1-17646840 100.00.0000.1111.
09/04/24 302319 M 09/04/24 RETIREES HEALTH INSURANCE 633.43 INVOICE: 1-17646840 220.60.4303.5136.
09/04/24 302320 M 09/04/24 HEALTH INSURANCE 2,178.49
INVOICE: 1-17646843 110.00.0000.2109.
09/04/24 302320 M 09/04/24 HEALTH INSURANCE 5.23
INVOICE: 1-17646843 100.10.4145.5131.

REPORT TOTALS 158,162.45

COUNT AMOUNT
TOTAL MANUAL CHECKS 2 158,162.45
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115009 ADEPT EVENTS LLC
07/02/24 302321 P 09/05/24 PUBLIC RELATIONS 1,095.00
INVOICE: 202675 100.40.4421.5504.

116296 ADVANCE AUTO PARTS
07/23/24 302322 P 09/05/24 MAINTENANCE-MACH & EQUIP 27.35 INVOICE: 3051420511446 640.50.4712.5603.

114672 AMAZON CAPITAL SERVICES
08/01/24 302323 P 09/05/24 SUPPLIES-OFFICE 42.01
INVOICE: 14FR-47QJ-779F 100.20.4130.5201.

106607 AT&T
08/25/24 302324 P 09/05/24 TELECOMMUNICATIONS 29.78
INVOICE: 000022195761 100.10.4145.5403.

101917 BOB'S EXPRESS WASH
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 13.00
INVOICE: 24 1503 100.30.4201.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 146.00
INVOICE: 24 1503 100.30.4203.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 63.00
INVOICE: 24 1503 100.30.4204.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 13.00
INVOICE: 24 1503 640.50.4712.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 16.00
INVOICE: 24 1503 220.60.4303.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 22.00
INVOICE: 24 1503 100.20.4160.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 13.00
INVOICE: 24 1503 100.50.4301.5601.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 20.00
INVOICE: 24 1503 640.50.4712.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 20.00
INVOICE: 24 1503 612.50.4610.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 20.00
INVOICE: 24 1503 100.50.4320.5601.
07/31/24 302325 P 09/05/24 MAINTENANCE-VEHICLES 40.00
INVOICE: 24 1503 220.60.4303.5601.

105726 BRENNTAG PACIFIC INC
08/27/24 302326 P 09/05/24 CHEMICAL SUPPLIES 2,751.50
INVOICE: BPI456054 640.50.4712.5274.
08/20/24 302326 P 09/05/24 CHEMICAL SUPPLIES 1,862.44
INVOICE: BPI454238 640.50.4712.5274.
08/29/24 302326 P 09/05/24 CHEMICAL SUPPLIES -140.00
INVOICE: BPI456438 640.50.4712.5274.

100090 BRISCO MILL & LUMBER YARD
07/10/24 302327 P 09/05/24 MAINTENANCE-BUILDINGS 61.11
INVOICE: 188733 640.50.4712.5604.
07/18/24 302327 P 09/05/24 SMALL TOOLS 60.82
INVOICE: 188782 640.50.4712.5273.
07/18/24 302327 P 09/05/24 MAINTENANCE-BUILDINGS 32.57
INVOICE: 188789 640.50.4712.5604.
07/18/24 302327 P 09/05/24 SPECIAL DEPARTMENT SUPPLI 3.21 INVOICE: 188790 640.50.4712.5255.
07/19/24 302327 P 09/05/24 MAINTENANCE-BUILDINGS 20.01
INVOICE: 188796 640.50.4712.5604.
07/22/24 302327 P 09/05/24 SMALL TOOLS 37.70
INVOICE: 188810 640.50.4712.5273.
07/23/24 302327 P 09/05/24 SMALL TOOLS 26.93
INVOICE: 188816 640.50.4712.5273.
07/24/24 302327 P 09/05/24 MAINTENANCE-BUILDINGS 71.21
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 188823 640.50.4712.5604.
07/24/24 302327 P 09/05/24 MAINTENANCE-BUILDINGS 287.24 INVOICE: 188828 640.50.4712.5604.

112669 BURT INDUSTRIAL SUPPLY INC
07/12/24 302328 P 09/05/24 MAINTENANCE-LINES & PUMPS 156.78 INVOICE: 145415 640.50.4712.5610.
07/19/24 302328 P 09/05/24 MAINTENANCE-LINES & PUMPS 419.56 INVOICE: 145809 640.50.4712.5610.

109756 CIVICPLUS LLC
08/28/24 302329 P 09/05/24 CONTRACTUAL SERVICES 2,888.79 INVOICE: 314705 100.10.4140.5303.

115466 CONSOR NORTH AMERICA INC
08/15/24 20250018 302330 P 09/05/24 DESIGN & SURVEY 51,883.45 INVOICE: N192663CA.00-57 350.50.5679.7501.

100722 DELTA DENTAL
09/01/24 302331 P 09/05/24 DENTAL INSURANCE 7,792.29
INVOICE: BE006226081 110.00.0000.2110.
09/01/24 302331 P 09/05/24 DENTAL INSURANCE 2,203.88
INVOICE: BE006226081 100.10.4099.5132.

114291 ESCRIBE SOFTWARE LTD
08/30/24 302332 P 09/05/24 CONTRACTUAL SERVICES 12,247.67 INVOICE: 9707 100.10.4140.5303.
08/30/24 302332 P 09/05/24 CONTRACTUAL SERVICES 10,458.00 INVOICE: 9707 100.10.4140.5303.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 105531 EXECUTIVE INFORMATION SERV INC
08/01/24 302333 P 09/05/24 MAINTENANCE-COMPUTER SOFT 22,080.00 INVOICE: EISMN0000455 100.30.4204.5607.

107743 FAMCON PIPE AND SUPPLY INC
08/28/24 302334 P 09/05/24 MAINTENANCE-LINES & PUMPS 351.78 INVOICE: S100135836.001 640.50.4712.5610.

109525 FIGUEROA'S TIRES
06/24/24 302335 P 09/05/24 MAINTENANCE-VEHICLES 30.00
INVOICE: 106163 640.50.4712.5601.
07/11/24 302335 P 09/05/24 MAINTENANCE-VEHICLES 470.76
INVOICE: 106390 640.50.4712.5601.
08/16/24 302335 P 09/05/24 MAINTENANCE-VEHICLES 580.54
INVOICE: 106929 640.50.4712.5601.

115803 GERBER, MICHAEL H
08/30/24 302336 P 09/05/24 SERVICES-EVENTS 600.00
INVOICE: 090824 100.40.4424.5353.

112624 GROVER TOOL AND RENTALS
08/29/24 302337 P 09/05/24 MAINTENANCE-GROUNDS 195.00
INVOICE: 1-549932 100.50.4320.5605.

108351 HARVEY'S HONEY HUTS
08/19/24 302338 P 09/05/24 CONTRACTUAL SERVICES 106.08
INVOICE: 51601 220.60.4303.5303.

114171 HEALTH AND HUMAN RESOURCE CTR
08/06/24 302339 P 09/05/24 EMPLOYEE ASSISTANCE PROGR 197.64 ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: E0325965 100.10.4145.5147.
08/06/24 302339 P 09/05/24 ACCOUNTS RECEIVABLE - FCF 49.41 INVOICE: E0325965 100.00.0000.1111.

110108 LEVEL 3 COMMUNICATIONS LLC
08/17/24 302340 P 09/05/24 TELECOMMUNICATIONS 5,593.12
INVOICE: 700719418 100.30.4201.5403.
08/17/24 302340 P 09/05/24 TELECOMMUNICATIONS 2,411.35
INVOICE: 700719418 100.10.4145.5403.

100429 MINER'S ACE HARDWARE, INC
08/28/24 302341 P 09/05/24 SPECIAL DEPARTMENT SUPPLI 72.15 INVOICE: 613524 100.50.4320.5255.
08/29/24 302341 P 09/05/24 MAINTENANCE-STREETS & BRI 35.54 INVOICE: 613594 220.60.4303.5613.

114729 PIERCE, GREGORY
08/01/24 302342 P 09/05/24 TUITION & REIMBURSEMENT 2,000.00 INVOICE: 061924-SPRING 2024 100.30.4201.5502.

111308 SITEONE LANDSCAPE SUPPLY LLC
08/23/24 302343 P 09/05/24 MAINTENANCE-GROUNDS 54.05
INVOICE: 145327772-001 100.50.4320.5605.

100550 SLO COUNTY AIR POLLUTION
07/01/24 302344 P 09/05/24 CONTRACTUAL SERVICES 1,082.07 INVOICE: 23758 100.50.4305.5303.

100605 SOCALGAS
08/23/24 302345 P 09/05/24 UTILITIES 14.07
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 19351491006 8/23 100.10.4145.5401.
08/23/24 302345 P 09/05/24 UTILITIES 16.35
INVOICE: 14501439005 08/23 100.10.4145.5401.
08/21/24 302345 P 09/05/24 UTILITIES 15.78
INVOICE: 07611524005 08/21 100.10.4145.5401.
08/26/24 302345 P 09/05/24 UTILITIES 14.79
INVOICE: 05281491315 08/26 100.10.4145.5401.

114978 SOUSA, GARRETT
08/01/24 302346 P 09/05/24 TUITION & REIMBURSEMENT 2,000.00 INVOICE: 061924-FALL/WINTER 100.30.4201.5502.

116045 STACCATO 2011 LLC
08/09/24 20250019 302347 P 09/05/24 MACHINERY & EQUIPMENT 35,987.85 INVOICE: 288120 271.30.4202.6201.

100733 STANDARD INSURANCE CO
09/01/24 302348 P 09/05/24 LIFE INSURANCE 2,702.87
INVOICE: 643870-SEPT 110.00.0000.2113.

116183 THE SHERWIN-WILLIAMS CO INC
08/28/24 302349 P 09/05/24 SPECIAL DEPARTMENT SUPPLI 415.97 INVOICE: 2246-1 100.50.4330.5255.

106551 UNITED STAFFING ASSOC.
08/28/24 302350 P 09/05/24 CONTRACTUAL SERVICES 464.14
INVOICE: 241574 100.50.4320.5303.

100660 USA BLUE BOOK
07/15/24 302351 P 09/05/24 SMALL TOOLS 69.87
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090524 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: INV00422705 640.50.4712.5273.

100737 VISION SERVICE PLAN
08/19/24 302352 P 09/05/24 VISION INSURANCE 2,101.90
INVOICE: 821111269 110.00.0000.2119.
08/19/24 302352 P 09/05/24 VISION INSURANCE 661.45
INVOICE: 821111269 100.10.4099.5133.

107049 VORTEX INDUSTRIES LLC
05/22/24 302353 P 09/05/24 CONTRACTUAL SERVICES 1,731.37 INVOICE: 01-1753219 100.50.4308.5303.

REPORT TOTALS 176,811.20

COUNT AMOUNT
TOTAL PRINTED CHECKS 33 176,811.20
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090624PY TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100723 CA ST EMPLOYMENT DEVEL DEPT
09/06/24 302354 M 09/06/24 STATE WITHHOLDING 27,507.17
INVOICE: PPE082924 110.00.0000.2108.
09/06/24 302354 M 09/06/24 STATE DISABILITY INSURANC 5,407.11 INVOICE: PPE082924 110.00.0000.2111.
105981 CA STATE DISBURSEMENT UNIT
09/06/24 302356 M 09/06/24 GARNISHMENTS 230.76
INVOICE: PAYDAY090624 110.00.0000.2114.
09/06/24 302356 M 09/06/24 GARNISHMENTS 154.15
INVOICE: PAYDAY090624 110.00.0000.2114.
09/06/24 302356 M 09/06/24 GARNISHMENTS 16.15
INVOICE: PAYDAY090624 110.00.0000.2114.
100039 CITY OF ARROYO GRANDE
09/06/24 302355 M 09/06/24 SOCIAL SECURITY 64,571.02
INVOICE: PPE082924 110.00.0000.2105.
09/06/24 302355 M 09/06/24 SOCIAL SECURITY 16,215.27
INVOICE: PPE082924 110.00.0000.2105.
09/06/24 302355 M 09/06/24 FEDERAL WITHHOLDING 67,341.64 INVOICE: PPE082924 110.00.0000.2104.
100729 PERS - RETIREMENT
09/06/24 302357 M 09/06/24 PERS RETIREMENT 26,288.95
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 18,084.20
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 17,515.75
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 12,177.44
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 11,563.19
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:090624PY TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 8,724.31
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 7,627.81
INVOICE: PPE 08.29.27 110.00.0000.2106.
09/06/24 302357 M 09/06/24 PERS RETIREMENT 7,412.62
INVOICE: PPE 08.29.27 110.00.0000.2106.
115959 STERLING ADMINISTRATION
09/10/24 302358 M 09/11/24 HEALTH INSURANCE 50.00
INVOICE: 803614 100.10.4145.5131.
09/11/24 302359 M 09/11/24 FLEXIBLE SPENDING ACCOUNT 1,714.98 INVOICE: 806168 110.00.0000.2127.

REPORT TOTALS 292,602.52

COUNT AMOUNT
TOTAL MANUAL CHECKS 6 292,602.52
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115009 ADEPT EVENTS LLC
07/02/24 302360 P 09/13/24 PUBLIC RELATIONS 1,095.00
INVOICE: 202676 100.40.4421.5504.
07/02/24 302361 P 09/13/24 PUBLIC RELATIONS 1,095.00
INVOICE: 202677 100.40.4421.5504.
116296 ADVANCE AUTO PARTS
08/20/24 302362 P 09/13/24 MAINTENANCE-VEHICLES 7.87
INVOICE: 3051423342938 100.50.4320.5601.
08/29/24 302362 P 09/13/24 MAINTENANCE-VEHICLES 26.10
INVOICE: 3051424243292 100.50.4320.5601.
08/15/24 302362 P 09/13/24 MAINTENANCE-BUILDINGS 81.85
INVOICE: 3051422842781 640.50.4712.5604.
115356 ALPINE REFRIGERATION
08/29/24 302363 P 09/13/24 CONTRACTUAL SERVICES 175.00
INVOICE: 31034 100.50.4308.5303.
08/23/24 302363 P 09/13/24 CONTRACTUAL SERVICES 1,054.91 INVOICE: 31211 100.50.4308.5303.
114672 AMAZON CAPITAL SERVICES
08/01/24 302364 P 09/13/24 ACCOUNTS RECEIVABLE - FCF 1,562.65 INVOICE: 1XHP-KWX1-79HH 100.00.0000.1111.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 64.54 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
08/01/24 302364 P 09/13/24 MAINTENANCE-OFFICE EQUIPM 158.37 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5602.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 117.45 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 75.41 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 1,001.65 ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 278.29 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
08/01/24 302364 P 09/13/24 DATA PROCESSING EQUIPMENT 892.96 INVOICE: 1XHP-KWX1-79HH 100.10.4140.5702.
106083 ARROYO GRANDE IN BLOOM INC
08/31/24 302365 P 09/13/24 CONTRACTUAL SERVICES 700.00
INVOICE: 090124 100.50.4308.5303.
09/02/24 302365 P 09/13/24 MAINTENANCE-GROUNDS 230.05
INVOICE: 090224 100.50.4320.5605.
113248 BEATTY, IRINA
09/05/24 302366 P 09/13/24 SERVICES-CLASSES 352.00
INVOICE: 090524 100.40.4424.5351.
101917 BOB'S EXPRESS WASH
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 39.00
INVOICE: 24-1515 100.30.4201.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 442.00
INVOICE: 24-1515 100.30.4203.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 104.00
INVOICE: 24-1515 100.30.4204.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 26.00
INVOICE: 24-1515 100.50.4301.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 13.00
INVOICE: 24-1515 100.20.4160.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 13.00
INVOICE: 24-1515 100.50.4307.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 39.00
INVOICE: 24-1515 640.50.4712.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 20.00
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 24-1515 640.50.4712.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 20.00
INVOICE: 24-1515 612.50.4610.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 20.00
INVOICE: 24-1515 100.50.4320.5601.
08/31/24 302367 P 09/13/24 MAINTENANCE-VEHICLES 40.00
INVOICE: 24-1515 220.60.4303.5601.
112709 BRAND CREATIVE
08/26/24 302368 P 09/13/24 SUPPLIES-OFFICE 65.18
INVOICE: 7561 100.40.4421.5201.
08/07/24 302368 P 09/13/24 PUBLIC RELATIONS 63.77
INVOICE: 7468 350.50.5620.5504.
111497 BRENDLER JANITORIAL SERVICE
09/02/24 302369 P 09/13/24 SUPPLIES-RECREATION CLASS 200.00 INVOICE: 4806 100.40.4424.5251.
09/02/24 302369 P 09/13/24 JANITORIAL SERVICES 1,135.00 INVOICE: 4804 100.50.4308.5615.
09/02/24 302369 P 09/13/24 JANITORIAL SERVICES 500.00
INVOICE: 4804 100.30.4201.5615.
100087 BREZDEN PEST CONTROL, INC
07/09/24 302370 P 09/13/24 MAINTENANCE-BUILDINGS 135.00 INVOICE: 520920 100.50.4308.5604.
09/09/24 302370 P 09/13/24 CONTRACTUAL SERVICES 174.00
INVOICE: 529073 100.50.4308.5303.
100090 BRISCO MILL & LUMBER YARD
08/01/24 302371 P 09/13/24 MAINTENANCE-GROUNDS 64.63
INVOICE: 188888 100.50.4320.5605.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/02/24 302371 P 09/13/24 MAINTENANCE-BUILDINGS 145.81 INVOICE: 188896 100.50.4308.5604.
08/26/24 302371 P 09/13/24 MAINTENANCE-STREETS & BRI 23.47 INVOICE: 189026 220.60.4303.5613.
08/26/24 302371 P 09/13/24 SMALL TOOLS 25.85
INVOICE: 189027 220.60.4303.5273.
08/27/24 302371 P 09/13/24 MAINTENANCE-GROUNDS 9.67
INVOICE: 189034 100.50.4320.5605.
07/30/24 302371 P 09/13/24 MAINTENANCE-BUILDINGS 71.80
INVOICE: 188870 640.50.4712.5604.
07/31/24 302371 P 09/13/24 MAINTENANCE-LINES & PUMPS 588.00 INVOICE: 188886 612.50.4610.5610.
08/05/24 302371 P 09/13/24 MAINTENANCE-MACH & EQUIP 68.38 INVOICE: 188906 640.50.4711.5603.
107697 BURNS, JEREMY
09/11/24 302372 P 09/13/24 TRAVEL/CONFERENCE/TRAININ 150.00 INVOICE: 09/24-09/25 100.30.4203.5501.
115944 CALIFORNIA TURF EQUIPMENT &
09/04/24 302373 P 09/13/24 MAINTENANCE-MACH & EQUIP 1,017.60 INVOICE: 647574 100.50.4320.5603.
100994 CALVARY CHAPEL
01/16/24 302374 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 150.00 INVOICE: 01-38546 100.00.0000.2206.
113082 CARTRIDGE WORKS INC
09/06/24 302375 P 09/13/24 SUPPLIES-OFFICE 297.26
INVOICE: 12267 100.10.4120.5201.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100171 CLINICAL LABORATORY OF
09/09/24 302376 P 09/13/24 WATER TREATMENT SERVICES 1,035.00 INVOICE: 1007977 640.50.4710.5310.
109431 CUDDY, GAYLE
09/05/24 302377 P 09/13/24 SERVICES-CLASSES 350.00
INVOICE: 090524 100.40.4424.5351.
115535 DASCALOS, ZOE
09/05/24 302378 P 09/13/24 SERVICES-CLASSES 69.30
INVOICE: 090524 100.40.4424.5351.
116295 ELAN CITY INC
08/20/24 20250014 302379 P 09/13/24 MAINTENANCE-STREETS & BRI 29,000.00 INVOICE: 20-4135 220.60.4303.5613.
107743 FAMCON PIPE AND SUPPLY INC
09/04/24 302380 P 09/13/24 SMALL TOOLS 92.24
INVOICE: S100136417.001 640.50.4712.5273.
100240 FARM SUPPLY CO
09/06/24 302381 P 09/13/24 SPECIAL DEPARTMENT SUPPLI 43.10 INVOICE: 110472 640.50.4712.5255.
101884 FASTENAL COMPANY
08/30/24 302382 P 09/13/24 MAINTENANCE-GROUNDS 1,550.69 INVOICE: CABAR131856 100.50.4320.5605.
113533 FIVE CITIES DUPLICATE BRIDGE
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 09/05/24 302383 P 09/13/24 SERVICES-CLASSES 1,620.50
INVOICE: 090524 100.40.4424.5351.
115397 FLOW N CONTROL INC
08/10/24 302384 P 09/13/24 MAINTENANCE-LINES & PUMPS 1,070.56 INVOICE: 206093 612.50.4610.5610.
109851 FRYER, ELIZABETH
09/05/24 302385 P 09/13/24 SERVICES-CLASSES 756.00
INVOICE: 090524 100.40.4424.5351.
100272 GIBBS INTERNATIONAL TRUCKS INC
07/26/24 302386 P 09/13/24 MAINTENANCE-VEHICLES 136.33
INVOICE: 209312N 640.50.4712.5601.
07/26/24 302386 P 09/13/24 MAINTENANCE-VEHICLES 566.05
INVOICE: 209310N 220.60.4303.5601.
100301 HEACOCK TRAILERS & TRUCK
08/09/24 302387 P 09/13/24 SMALL TOOLS 1,401.87
INVOICE: 21440 220.60.4303.5273.
100311 HINDERLITER, DE LLAMAS & ASSOC
08/16/24 302388 P 09/13/24 CONTRACTUAL SERVICES 874.97
INVOICE: SIN041936 100.10.4120.5303.
08/16/24 302388 P 09/13/24 CONTRACTUAL SERVICES 430.96
INVOICE: SIN041936 120.10.4118.5303.
08/16/24 302388 P 09/13/24 CONTRACTUAL SERVICES 97.51
INVOICE: SIN041936 100.10.4120.5303.
08/16/24 302388 P 09/13/24 CONTRACTUAL SERVICES 138.10
INVOICE: SIN041952 120.10.4118.5303.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100726 ICMA RETIREMENT CORP, PLAN ID 302419
09/06/24 302460 T 09/13/24 DEFERRED COMPENSATION 6,100.46 INVOICE: 6460680 110.00.0000.2117.
09/06/24 302460 T 09/13/24 DEFERRED COMPENSATION 13,303.72 INVOICE: 6460680 110.00.0000.2117.
09/06/24 302460 T 09/13/24 DEFERRED COMPENSATION 916.66 INVOICE: 6460680 110.00.0000.2117.
09/06/24 302460 T 09/13/24 DEFERRED COMPENSATION 135.00 INVOICE: 6460680 110.00.0000.2117.
09/06/24 302460 T 09/13/24 DEFERRED COMPENSATION 375.55 INVOICE: 6460680 110.00.0000.2117.
115899 JOHNSTON, TROY E
09/05/24 302389 P 09/13/24 SERVICES-CLASSES 1,192.52
INVOICE: 1877 100.40.4424.5351.
110210 JUAREZ, SR, LARRY
08/30/24 302390 P 09/13/24 SERVICES-LEAGUES 300.00
INVOICE: 083024 100.40.4424.5352.
115534 KELLER, KAYLYN
09/05/24 302391 P 09/13/24 SERVICES-CLASSES 69.30
INVOICE: 090524 100.40.4424.5351.
107299 KETTING OLIVIER, GASTON
08/30/24 302392 P 09/13/24 SERVICES-LEAGUES 450.00
INVOICE: 083024 100.40.4424.5352.
105057 KIMBALL MIDWEST
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/22/24 302393 P 09/13/24 SPECIAL DEPARTMENT SUPPLI 249.55 INVOICE: 102535570 100.50.4305.5255.
114838 LA PAZ, JHADE
09/06/24 302394 P 09/13/24 SERVICES-LEAGUES 80.00
INVOICE: 090624 100.40.4424.5352.
114764 LEONG, PRINCESS
09/05/24 302395 P 09/13/24 SERVICES-CLASSES 400.00
INVOICE: 090524 100.40.4424.5351.
112806 LEWIS, MAUREEN
08/13/24 302396 P 09/13/24 SERVICES-CLASSES 50.00
INVOICE: 1214 100.40.4424.5351.
09/05/24 302396 P 09/13/24 SERVICES-CLASSES 200.00
INVOICE: 090524 100.40.4424.5351.
09/06/24 302396 P 09/13/24 SERVICES-CLASSES 50.00
INVOICE: 090624 100.40.4424.5351.
0 112522 LEXIPOL LLC
06/01/24 302397 P 09/13/24 CONTRACTUAL SERVICES 4,749.05 INVOICE: INVCOR11235360 100.30.4201.5303.
116276 LORENCZ, LARISSA
09/09/24 302398 P 09/13/24 SERVICES-LEAGUES 48.00
INVOICE: 090924 100.40.4424.5352.
106701 MAINLINE UTILITY COMPANY
07/11/24 302399 P 09/13/24 DESIGN & SURVEY 3,200.00
INVOICE: 5743 350.50.5794.7501.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 102635 MANGIARDI, HEIDY
09/05/24 302400 P 09/13/24 SERVICES-CLASSES 1,821.40
INVOICE: 090524 100.40.4424.5351.
100426 MIER BROS LANDSCAPE PRODUCTS
08/13/24 302401 P 09/13/24 MAINTENANCE-GROUNDS 63.57
INVOICE: 380414 100.50.4320.5605.
08/22/24 302401 P 09/13/24 MAINTENANCE-STREETS & BRI 296.31 INVOICE: 380735 220.60.4303.5613.
100429 MINER'S ACE HARDWARE, INC
08/27/24 302402 P 09/13/24 MAINTENANCE-LINES & PUMPS 19.38 INVOICE: 613475 640.50.4712.5610.
08/07/24 302402 P 09/13/24 SMALL TOOLS 28.00
INVOICE: 612167 640.50.4712.5273.
08/06/24 302402 P 09/13/24 MAINTENANCE-LINES & PUMPS 16.15 INVOICE: 612090 640.50.4712.5610.
08/02/24 302402 P 09/13/24 MAINTENANCE-LINES & PUMPS 8.37 INVOICE: 611811 640.50.4712.5610.
07/18/24 302402 P 09/13/24 MAINTENANCE-LINES & PUMPS 35.55 INVOICE: 610879 640.50.4712.5610.
07/17/24 302402 P 09/13/24 MAINTENANCE-BUILDINGS 38.77
INVOICE: 610777 640.50.4712.5604.
08/30/24 302402 P 09/13/24 MAINTENANCE-GROUNDS 24.20
INVOICE: 613651 100.50.4330.5605.
09/03/24 302402 P 09/13/24 MAINTENANCE-BUILDINGS 34.44
INVOICE: 613828 100.50.4308.5604.
09/03/24 302402 P 09/13/24 SMALL TOOLS 59.33
INVOICE: 613839 100.50.4308.5273.
09/04/24 302402 P 09/13/24 MAINTENANCE-BUILDINGS 111.24 INVOICE: 613876 100.50.4308.5604.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 09/04/24 302402 P 09/13/24 MAINTENANCE-STREETS & BRI 91.53 INVOICE: 613918 220.60.4303.5613.
09/04/24 302402 P 09/13/24 MAINTENANCE-GROUNDS 76.41
INVOICE: 613924 100.50.4320.5605.
09/05/24 302402 P 09/13/24 MAINTENANCE-BUILDINGS 25.39
INVOICE: 613954 100.50.4308.5604.
09/06/24 302402 P 09/13/24 MAINTENANCE-STREETS & BRI 32.28 INVOICE: 614014 220.60.4303.5613.
114042 NELSON, NICCOLA
09/05/24 302403 P 09/13/24 SERVICES-CLASSES 496.00
INVOICE: 090524 100.40.4424.5351.
101265 NEW TIMES
06/28/24 302404 P 09/13/24 PUBLIC RELATIONS 515.00
INVOICE: 368997 100.40.4421.5504.
100466 NOBLE SAW, INC
08/19/24 302405 P 09/13/24 MAINTENANCE-VEHICLES 48.84
INVOICE: 625770 220.60.4303.5601.
115082 NVIRO
07/19/24 302406 P 09/13/24 MAINTENANCE-LINES & PUMPS 4,376.71 INVOICE: 3992 612.50.4610.5610.
999999 ONE TIME PAY
07/25/24 302415 P 09/13/24 SPEC.INT.CLASSES 105.00
INVOICE: 01-42516 100.00.4000.4605.
03/04/24 302416 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-39694(1) 100.00.0000.2206.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 04/12/24 302425 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-40515 100.00.0000.2206.
04/17/24 302409 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-40612 100.00.0000.2206.
04/24/24 302407 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-40710 100.00.0000.2206.
05/16/24 302414 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-41207 100.00.0000.2206.
09/05/24 302423 P 09/13/24 SUPPLIES-RECREATION CLASS 139.48 INVOICE: 090524 100.40.4424.5251.
07/25/24 302410 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42511(1) 100.00.0000.2206.
07/09/24 302408 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42199(1) 100.00.0000.2206.
07/09/24 302408 P 09/13/24 PARK USER FEES 106.00
INVOICE: 01-42199(1) 100.00.4000.4354.
07/09/24 302426 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42199(2) 100.00.0000.2206.
07/17/24 302413 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42345(1) 100.00.0000.2206.
08/09/24 302411 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42823 100.00.0000.2206.
08/09/24 302412 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42821 100.00.0000.2206.
08/09/24 302412 P 09/13/24 PARK USER FEES 16.00
INVOICE: 01-42821 100.00.4000.4354.
08/09/24 302424 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42822(1) 100.00.0000.2206.
08/09/24 302417 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42705(1) 100.00.0000.2206.
07/25/24 302427 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42511(2) 100.00.0000.2206.
07/16/24 302422 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 03-02062 100.00.0000.2206.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/09/24 302420 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 150.00 INVOICE: 01-42821(1) 100.00.0000.2206.
08/09/24 302418 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42818 100.00.0000.2206.
08/05/24 302421 P 09/13/24 PARK USER FEES 50.00
INVOICE: 03-02119 100.00.4000.4354.
07/25/24 302419 P 09/13/24 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-42514(1) 100.00.0000.2206.
999997 ONE TIME PAY REFUND
09/06/24 302438 P 09/13/24 DEPOSIT RENTERS 293.07
INVOICE: 00029471 640.00.0000.2301.
09/06/24 302430 P 09/13/24 DEPOSIT RENTERS 35.67
INVOICE: 00022200 640.00.0000.2301.
09/06/24 302434 P 09/13/24 DEPOSIT RENTERS 52.56
INVOICE: 00002794 640.00.0000.2301.
09/06/24 302431 P 09/13/24 DEPOSIT RENTERS 298.48
INVOICE: 0023036 640.00.0000.2301.
09/06/24 302428 P 09/13/24 DEPOSIT RENTERS 35.69
INVOICE: 00028769 640.00.0000.2301.
09/06/24 302432 P 09/13/24 DEPOSIT RENTERS 27.22
INVOICE: 00028884 640.00.0000.2301.
09/06/24 302429 P 09/13/24 DEPOSIT RENTERS 111.45
INVOICE: 00028889 640.00.0000.2301.
09/06/24 302433 P 09/13/24 DEPOSIT RENTERS 145.49
INVOICE: 00028897 640.00.0000.2301.
09/06/24 302435 P 09/13/24 DEPOSIT RENTERS 60.00
INVOICE: 00028946 640.00.0000.2301.
09/06/24 302437 P 09/13/24 DEPOSIT RENTERS 60.48
INVOICE: 00028974 640.00.0000.2301.
09/06/24 302436 P 09/13/24 DEPOSIT RENTERS 143.76
INVOICE: 00029143 640.00.0000.2301.
09/06/24 302439 P 09/13/24 DEPOSIT RENTERS 79.78
INVOICE: 00029201 640.00.0000.2301.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115057 ORTEGA, LOUIE
09/05/24 302440 P 09/13/24 SERVICES-EVENTS 1,500.00
INVOICE: 091524 100.40.4424.5353.
100481 PACIFIC GAS & ELECTRIC CO
08/19/24 302441 P 09/13/24 POWER 2,006.74
INVOICE: 8532998718-5 08/19 100.50.4307.5402.
08/19/24 302441 P 09/13/24 POWER 12,729.40
INVOICE: 8532998718-5 08/19 640.50.4712.5402.
08/19/24 302441 P 09/13/24 POWER 3,224.33
INVOICE: 8532998718-5 08/19 640.50.4711.5402.
08/19/24 302441 P 09/13/24 POWER 3,509.44
INVOICE: 8532998718-5 08/19 612.50.4610.5402.
08/19/24 302441 P 09/13/24 UTILITIES 11,955.40
INVOICE: 8532998718-5 08/19 100.10.4145.5401.
08/19/24 302441 P 09/13/24 PARKWAY MAINTENANCE-TR 17 13.77 INVOICE: 8532998718-5 08/19 217.50.4560.5355.
08/14/24 302441 P 09/13/24 POWER 19,674.36
INVOICE: 1940974818-3 08/14 100.50.4307.5402.
116305 PEARSON JR, PATRICK C
09/05/24 302442 P 09/13/24 SERVICES-EVENTS 1,000.00
INVOICE: 092224 100.40.4424.5353.
100492 PETTY CASH
09/06/24 302443 P 09/13/24 CHANGE CASH-SPECIAL RECRE 400.00 INVOICE: 1935 100.00.0000.1033.
115459 PRUDENTIAL OVERALL SUPPLY
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/08/24 302444 P 09/13/24 CONTRACTUAL SERVICES 25.03
INVOICE: 80956695 100.50.4308.5303.
08/08/24 302444 P 09/13/24 CONTRACTUAL SERVICES 48.02
INVOICE: 80956696 100.50.4308.5303.
08/08/24 302444 P 09/13/24 CONTRACTUAL SERVICES 27.63
INVOICE: 80956697 100.50.4308.5303.
08/08/24 302444 P 09/13/24 CONTRACTUAL SERVICES 31.17
INVOICE: 80956699 100.50.4308.5303.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 57.31
INVOICE: 80956702 100.50.4320.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 43.31
INVOICE: 80956698 640.50.4712.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 37.10
INVOICE: 80956700 100.50.4305.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 23.08
INVOICE: 80956701 100.50.4330.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 31.33
INVOICE: 80956703 220.60.4303.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 24.49
INVOICE: 80956704 100.50.4308.5143.
08/08/24 302444 P 09/13/24 UNIFORM ALLOWANCE 23.77
INVOICE: 80956705 612.50.4610.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 43.31
INVOICE: 80957882 640.50.4712.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 16.80
INVOICE: 80957883 100.50.4305.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 23.08
INVOICE: 80957884 100.50.4330.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 36.47
INVOICE: 80957885 100.50.4320.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 31.33
INVOICE: 80957886 220.60.4303.5143.
08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 24.49
INVOICE: 80957887 100.50.4308.5143.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/15/24 302444 P 09/13/24 UNIFORM ALLOWANCE 23.77
INVOICE: 80957888 612.50.4610.5143.
08/29/24 302444 P 09/13/24 UNIFORM ALLOWANCE 43.31
INVOICE: 80960376 640.50.4712.5143.
08/29/24 302444 P 09/13/24 UNIFORM ALLOWANCE 16.80
INVOICE: 80960377 100.50.4305.5143.
08/29/24 302444 P 09/13/24 UNIFORM ALLOWANCE 23.08
INVOICE: 80960378 100.50.4330.5143.
113127 ROBERT HALF
08/13/24 302445 P 09/13/24 CONTRACTUAL SERVICES 1,092.00 INVOICE: 63944109 100.10.4120.5303.
08/19/24 302445 P 09/13/24 CONTRACTUAL SERVICES 1,092.00 INVOICE: 63962389 100.10.4120.5303.
08/29/24 302445 P 09/13/24 CONTRACTUAL SERVICES 1,092.00 INVOICE: 64013133 100.10.4120.5303.
09/05/24 302445 P 09/13/24 CONTRACTUAL SERVICES 254.35
INVOICE: 64037963 100.10.4120.5303.
116304 SANTA MARIA SUN
05/23/24 302446 P 09/13/24 PUBLIC RELATIONS 632.00
INVOICE: 367659 100.40.4421.5504.
100605 SOCALGAS
09/06/24 302447 P 09/13/24 UTILITIES 16.27
INVOICE: 01121606006 9/6 100.10.4145.5401.
09/06/24 302447 P 09/13/24 UTILITIES 114.84
INVOICE: 12041607008 9/6 100.10.4145.5401.
09/09/24 302447 P 09/13/24 UTILITIES 27.31
INVOICE: 09301508454 9/9 100.10.4145.5401.
115665 SORIANO, ZACHARY
ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 08/30/24 302448 P 09/13/24 SERVICES-LEAGUES 176.00
INVOICE: 083024 100.40.4424.5352.
105339 ST JOHN'S LUTHERAN CHURCH
09/03/24 302449 P 09/13/24 SUPPLIES-RECREATION CLASS 500.00 INVOICE: 090324 100.40.4424.5251.
113174 TCA TOOLS INC
09/12/24 302450 P 09/13/24 MAINTENANCE-MACH & EQUIP 544.41 INVOICE: 091224132289 100.50.4305.5603.
105134 UK INT'L SOCCER CAMPS INC
09/05/24 302451 P 09/13/24 SERVICES-CLASSES 14,060.20
INVOICE: 090524 100.40.4424.5351.
109403 US BANK OF CALIFORNIA
09/06/24 302461 T 09/13/24 PARS RETIREMENT 754.22
INVOICE: PPE 08.29.24 110.00.0000.2107.
09/06/24 302461 T 09/13/24 PARS RETIREMENT 188.57
INVOICE: PPE 08.29.24 110.00.0000.2107.
108239 VERDIN MARKETING INK
08/31/24 302452 P 09/13/24 ADVERTISING 13,561.64
INVOICE: 12005 240.10.4150.5301.
102137 VERIZON WIRELESS
09/04/24 302453 P 09/13/24 TELECOMMUNICATIONS 304.08
INVOICE: 9973045084 100.10.4145.5403.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 109908 VISIT SLO CAL
07/31/24 302454 P 09/13/24 DUE TO COUNTY OF SLO 28,421.58 INVOICE: 073124 761.00.0000.2007.
07/31/24 302454 P 09/13/24 COUNTY TMD ASSESSMNT ADMI -568.43 INVOICE: 073124 100.00.4000.4771.
102609 WATERBOYS PLUMBING
08/07/24 302455 P 09/13/24 CONTRACTUAL SERVICES 1,009.00 INVOICE: 31369 226.50.4306.5303.
100699 WILSON ELECTRIC COMPANY INC, LEE
08/02/24 302456 P 09/13/24 CONTRACTUAL SERVICES 1,635.00 INVOICE: 2407 220.60.4303.5303.
08/29/24 302456 P 09/13/24 CONTRACTUAL SERVICES 145.00
INVOICE: 3766 220.60.4303.5303.
08/29/24 302456 P 09/13/24 CONTRACTUAL SERVICES 751.63
INVOICE: 3769 220.60.4303.5303.
113459 YOUTH EVOLUTION BASKETBALL
09/03/24 302457 P 09/13/24 SERVICES-CLASSES 539.00
INVOICE: 090324 B CAMP 100.40.4424.5351.
09/03/24 302457 P 09/13/24 SERVICES-CLASSES 441.00
INVOICE: 090324- S CAMP 100.40.4424.5351.
09/05/24 302457 P 09/13/24 SERVICES-CLASSES 4,630.50
INVOICE: 090524 100.40.4424.5351.
115052 YOUTH TECH INC.
06/19/24 302458 P 09/13/24 SERVICES-CLASSES 1,865.50
INVOICE: 7761 100.40.4424.5351.
06/26/24 302458 P 09/13/24 SERVICES-CLASSES 1,827.00
INVOICE: 7794 100.40.4424.5351.

ATTACHMENT 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 09/26/2024 08:49
User: lhorejsi
Program ID: appdwarr

INV GROUP:091324 TO FISCAL 2024/03 07/01/2024 TO 06/30/2025

VENDOR NAME

INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 07/18/24 302458 P 09/13/24 SERVICES-CLASSES 2,002.00
INVOICE: 7865 100.40.4424.5351.
115850 ZEPEDA, MISTY
09/09/24 302459 P 09/13/24 SERVICES-LEAGUES 48.00
INVOICE: 090924 100.40.4424.5352.

REPORT TOTALS 230,537.30

COUNT AMOUNT
TOTAL PRINTED CHECKS 100 208,763.12
TOTAL EFT TRANSFERS 2 21,774.18
** END OF REPORT - Generated by Lynda Horejsi **
ATTACHMENT 1

.

General Fund 407,161.82 5101 Salaries Full time 251,695.82 Streets Fund 16,675.73 5101 Volunteer Employee Retirement - Sewer Fund 15,821.13 5102 Salaries Part-Time - PPT 4,649.25 Water Fund 25,229.76 5103 Salaries Part-Time - TPT 5,925.88 464,888.44 5105 Salaries OverTime 17,211.45
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,116.20
5108 Holiday Pay 23,555.35
5109 Sick Pay 6,994.23
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 15,988.75 5113 Vacation Pay 8,350.32
Public Works - Maintenance 397.52 5114 Comp Pay 5,399.17 Public Works - Enterprise 825.18 5115 Annual Leave Pay 11,740.44 Recreation - Administration - 5116 Salaries - Police FTO 190.56 Recreation - Special Events - 5121 PERS Retirement 39,093.08 17,211.45 5122 Social Security 24,499.02
5123 PARS Retirement 151.61
5126 State Disability Ins. 3,511.44
5127 Deferred Compensation 766.66
5131 Health Insurance 52,116.49
5132 Dental Insurance 2,873.28
5133 Vision Insurance 749.18
5134 Life Insurance 384.60
5135 Long Term Disability 481.54
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 162.87
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 1,207.50
464,888.44
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
08/30/24 - 09/12/2024
9/20/2024

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: Statement of Investment Deposits for August 2024 DATE: October 8, 2024
RECOMMENDATION:

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

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no funding impact on 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 August 31, 2024, and includes all investments managed by the City. As of August 31, 2024, the investment portfolio complied with all State laws and the City’s investment policy.

Item 9.b.

City Council
Statement of Investment Deposits for August 2024
October 8, 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, diversification 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: August 31, 2024

ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
August 31, 2024
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Local Agency Investment Fund $ 5,278,114.43 5,278,114.43 $ 4.579% 18.388% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 4.880% February 21, 2024 12 mos February 21, 2025 0.868% Mountain America Federal Credit Union 249,000.00 249,000.00 4.750% October 14, 2022 24 mos October 15, 2024 0.868% Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 0.861% Wells Fargo Bank 249,000.00 249,000.00 4.600% October 28, 2022 24 mos October 28, 2024 0.868% Beal Bk Plano TX 247,000.00 247,000.00 1.350% March 26, 2022 36 mos March 26, 2025 0.861% Beal Bk Las Vegas NV 247,000.00 247,000.00 1.250% March 26, 2022 36 mos March 26, 2025 0.861% First Technology Federal 248,000.00 248,000.00 5.000% April 14, 2023 24 mos April 14, 2025 0.864% Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 0.854% American Express National Bank 246,000.00 246,000.00 3.100% May 25, 2022 36 mos May 25, 2025 0.857% New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.868% Chief Financial Federal Credit Union 249,000.00 249,000.00 4.600% October 12, 2022 36 mos October 14, 2025 0.868% Live Oak Bank 249,000.00 249,000.00 3.150% May 25, 2022 48 mos May 26, 2026 0.868% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.868% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.864% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 0.864% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.847% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 0.864% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.868% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.864% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.857% United Teletech Financial Credit Union 248,000.00 248,000.00 3.500% November 8, 2023 53 mos April 1, 2028 0.864% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.850% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.868% Bank Hapoalim BM New York 244,000.00 244,000.00 4.600% May 21, 2024 60 mos May 21, 2029 0.850% Morgan Stanley Private Bank 244,000.00 244,000.00 4.650% May 22, 2024 60 mos May 22, 2029 0.850% Total Certificates of Deposit 6,182,000.00 6,182,000.00 21.544% Agency Bonds
Federal Home Loan Bank 499,252.43 518,409.32 1.000% July 19, 2022 29 mos December 20, 2024 1.739% Federal Farm Credit Bank 998,431.00 979,441.26 0.430% March 17, 2021 48 mos March 3, 2025 3.479% Federal Natl Mortgage Assn 1,000,000.00 957,180.21 0.500% October 20, 2020 60 mos October 20, 2025 3.484% Federal Home Loan Bank 999,500.00 950,385.98 0.800% March 17, 2021 60 mos March 10, 2026 3.482% Federal Home Loan Bank 994,396.00 961,131.47 2.400% March 17, 2021 72 mos March 29, 2027 3.464% Federal Home Loan Bank 500,000.00 490,903.56 3.375% May 17, 2022 60 mos May 17, 2027 1.742% Federal Agriculture Mortgage Corp 2,029,036.00 2,072,171.70 4.320% May 17, 2024 60 mos April 26, 2029 7.068% Total Agency Bonds 6,929,623.50 7,020,615.43 24.458%

ATTACHMENT 1
300 E. Branch St.

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

CITY OF ARROYO GRANDE
Portfolio Summary
August 31, 2024
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio Municipal Bonds
California State GO Various Purp Bond 491,810.00 $ 487,880.00 $ 3.100% May 12, 2022 47 mos April 1, 2026 1.713% California State Taxable GO Unlimited 1,256,116.00 1,318,988.80 3.500% November 1, 2023 53 mos April 1, 2028 4.376% Total Municipal Bonds 1,806,868.80 1,747,926.00 6.089%
Treasury Obligations
U.S. Treasury 365 -Day Bill 4,999,380.89 5,006,098.26 5.000% August 22, 2024 3 mos November 29, 2024 17.416% U.S. Treasury BL-2024 Series 2,489,952.50 2,496,718.75 4.500% March 4, 2024 9 mos November 30, 2024 8.674% U.S. Treasury Z-2026 Series 984,728.00 945,468.75 1.100% December 6, 2021 53 mos May 31, 2026 3.431% Total Treasury Obligations 8,448,285.76 8,474,061.39 29.521% TOTAL INVESTMENTS $ 28,644,892.49 28,702,717.25 $ 100.000%

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services SUBJECT: Fiscal Year 2023-24 Year-End Financial Status Report DATE: October 8, 2024
RECOMMENDATION:

Receive and file the Fiscal Year 2023-24 Year-End Financial Status Report.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Preparation of the Fiscal Year (FY) 2023-24 Year-End Financial Status Report (the “YearEnd Report”) requires staff time within the existing work plan and budget for the Administrative Services Department. At year-end, FY 2023-24 revenues for the Consolidated General Fund were $25.7 million, or three percent (3%), higher than the Adjusted Budget. Actual Expenditures were $29.2 million, and below the Adjusted Budget by approximately $3.4 million, or ten percent (10%).

BACKGROUND:

Each fiscal year the City Council adopts a budget, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The Year-End Report is the fourth and final financial performance report that staff will present to the City Council during the 2023-24 fiscal year. The purpose of the FY 2023-24 Year-End Report is to:
 Compare year-end revenues received and expenditures incurred to the end of the prior year and to Adjusted Budget to determine the City’s financial performance;  Provide explanations for key account variances and identify any potential trends that might impact financial planning; and
 Provide other key year-end information including headcount statistics, status of Capital Improvement Projects, and completed Budget Adjustment Requests.

ANALYSIS OF ISSUES:

Year-End Revenue and Expenditures Compared to Prior Year

Item 9.c.

City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024

Table 1. Current Year-End Actuals Compared to Prior Year-End Actuals The Consolidated General Fund shown in Table 1 is the primary operating fund of the City and accounts for resources and services traditionally associated with government.

The Consolidated General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The Consolidated General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. The City has historically reported on the Consolidated General Fund separately from the Measure O 2006 Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report.

The Measure O 2006 Sales Tax Fund accounts for the revenues derived from Measure O 2006, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O 2006 included advisory measures when passed, providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account.

This report presents information for the Consolidated General Fund that includes Measure O 2006 Tax Fund revenues and expenditures. Consolidated General Fund revenues at the end of FY 2023-24 were approximately $234,636 higher than at the end of FY 2022-23. Expenditures were approximately $6.1 million higher through the end of this year compared to the prior year. A more thorough explanation of year-end variances is set forth in the attached financial report (Attachment 1). The following is a summary of the year-end variances between the two fiscal years.

Year-End Revenue and Expenditures Compared to Adjusted Budget Table 2. Year-End Actuals Compared to Adjusted Budget
Year-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue 25,734,266 25,499,631 234,635
Expenditures 29,196,236 23,065,400 6,130,836
FY 2023-24
Adjusted Budget
FY 2023-24
Year-End Actuals Variance
Revenue 24,894,617 25,734,266 839,649
Expenditures 32,554,477 29,196,236 (3,358,241)

Item 9.c.

City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024

Table 2 above compares year-end actual results to the Adjusted Budget. FY 2023-24 Year-End actual revenue was above the Adjusted Budget by $839,650. Year-End actual expenditures were lower than the Adjusted Budget by approximately $3.4 million. The following is a summary of the year-end revenue and expenditure variances compared to the Adjusted Budget. A more thorough explanation of year-end variances is set forth in the attached financial report.

Revenue ($839,650 higher)
General Fund revenue for FY 2023-24 is more than the Adjusted Budget by $839,650.

The majority of the variance is related to increased Property Tax, Measure O-2006 Sales Tax, User Fees, and Franchise Fees revenues that exceeded the Adjusted Budget. The Year-End Report includes greater detail regarding the causes for the revenue variances.

Expenditures (approximately $3.4 million lower)
Actual expenditures were $3,358,241 lower than the Budget by 10%. All of the City’s departments are under their spending targets. Some of the more significant savings occurred in the Measure O 2006 Sales CIP Allocation, Administrative Services, Public Works, Community Development, and Police Departments. The Year-End Report includes greater detail regarding the causes for the expenditure variances in these departments.

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

ALTERNATIVES:

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

1. Receive and file the Fiscal Year 2023-24 Year-End Financial Status; or

2. Provide other direction to staff.

ADVANTAGES:

The financial report presents an updated review of the City’s financial performance in FY 2023-24.

DISADVANTAGES:

No disadvantages have been identified at this time.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

Item 9.c.

City Council
Fiscal Year 2023-24 Year-End Financial Status Report
October 8, 2024

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Fiscal Year 2023-24 Year-End Financial Status Report

ATTACHMENT 1

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

INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of the Fiscal Year (FY) 2023-24.

The purpose of this report is to update the public and the City Council on the City’s financial position at year-end and compare actual results to the prior year and the Adjusted Budget to determine the City’s performance. The timeframe of this report is July 1, 2023 through June 30, 2024.

The financial report is organized in the following sections:

Section 1 – an overview of City’s financial position after the end of FY 2023-24. As part of the analysis, brief
explanations of significant revenue and expenditure
variances are included.

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

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

Section 4 – a listing of Budget Amendment Requests
previously approved by Council and completed in the
fourth quarter of the fiscal year.

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

ENSURING FISCAL
STABILITY:

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

ATTACHMENT 1

SECTION 1: OVERVIEW OF FINANCIAL POSITION

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

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

This report will present information for the Consolidated General Fund that includes Measure O 2006 Sales Tax Fund revenues and expenditures.

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

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

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

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

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

ATTACHMENT 1

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

CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns of FY 2023-24 and compares results against the FY 2022-23 results for all Governmental Funds as well as the City’s Consolidated General Fund. The totals in the table reflect the year-end actuals for both revenue and expenditures.

Table 1
The following discussion focuses on both the City’s Governmental Funds and the Consolidated General Fund and provides a comparison between FY 2023-24 and FY 2022-23 results for both revenue and expenditures. Governmental Funds and Consolidated General Fund revenue and expenditures for FY 2023-24 are generally higher than the prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service Funds, as well as the Consolidated General Fund.

Governmental Funds – At the end of FY 2023-24, Governmental Fund revenue was – 3.5%, or $1 million higher than prior year, and expenditures were higher by 20.4% or $5.6 million.

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

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

ALL FUNDS
PROPRIETORY FUNDS General Fund Debt Service Funds Enterprise Funds Private Purpose Fund Year-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue $ 30,352,133 $ 29,333,353 $ 1,018,780
Expenditures $ 33,047,468 $ 27,439,298 $ 5,608,170
Year-End
FY 2023-24
Year-End
FY 2022-23 Variance
Revenue $ 25,734,267 $ 25,499,631 $ 234,636
Expenditures $ 29,196,236 $ 23,065,400 $ 6,130,836
Governmental Funds
Consolidated General Fund Page 47 of 99
ATTACHMENT 1

which is separate from the Consolidated General Fund and not otherwise addressed in this report.

The Governmental Funds category includes the Consolidated General Fund as well as other Special Revenue Funds. The Consolidated General Fund and ARPA Fund variances are explained as follows:

Consolidated General Fund - The Consolidated General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. Consolidated General Fund revenues through the end of FY 2023-24 were 1%, or $234,636 higher than the prior year. Expenditures increased by 26.6%, or $6.1 million higher through the end of this year compared to the prior year. The majority of the variance between the two fiscal years is related to increased costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation.

ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the American Rescue Plan Act. This Act is intended to provide financial aid to families, governments, businesses, schools, non-profits, and others impacted by the COVID-19 public health crisis. To date, the City has received the full amount allocated, totaling $4,300,241. In FY 2021-22, expenditures incurred totaled $604,246. In FY 2022-23, expenditures incurred totaled $745,837. In FY 2023-24, expenditures incurred totaled $1,121,731. The remaining $1,828,427 is currently recognized as revenue in FY 2024-25.

CONSOLIDATED GENERAL FUND IMPACTS
The following discussion focuses on the City’s Consolidated General Fund performance. Chart 1 starts off with a simple overview of Consolidated General Fund performance compared to the Adjusted Budget.

Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2023-24 actual expenditures compared to the Adjusted Budget (Table 3). Lastly, a discussion of Consolidated General Fund revenue is included, which compares actual results to the Adjusted Budget (Table 4).

Chart 1
Chart 1 shows a simple comparison
of actual revenue and
expenditures to the Adjusted
Budget. Consolidated General
Fund revenue exceeded the
Adjusted Budget by $839,649.

Property Tax, Measure O-2006
Sales Tax, User Fees, and Franchise
Fees revenues exceeded the
Adjusted Budget. The actual
expenditures totaled $29.2 million,
or 90% of the full year’s Budget,
and are under the budget by $3.4
million. A more detailed discussion on Consolidated General Fund revenue and expenditure variances is included later in this report.

ATTACHMENT 1

Table 2
Table 2 reflects major expenditure cost
categories within the Consolidated
General Fund. This chart is intended to
explain where the City’s resources were
spent during the fiscal year. Within the
total expenditures of $29.2 million, 43.8%
of the City’s costs are associated with
personnel, 34.2% with operating and
maintenance, 1.1% for the City’s debt
service, 0.5% for Capital Outlay, and 20.4% with transfers to other funds.

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

Table 3 – Consolidated General Fund Expenditures by Department Overall, the City was under the Adjusted Budget by 10%, or $3.4 million. The majority of City departments were under spent, except for Administrative Services and Recreation Services. Some of the more significant savings occurred in the Measure O 2006 Sales CIP Allocation, Administrative Services, Public Works, Community Development, and Police Departments. A more detailed explanation of key expenditure variances by individual department/division is provided below.

City Administration $ 1,751,100 $ 1,731,651 $ 19,449 1% Legislative & Information Services 449,460 422,012 27,448 6% Measure O 2006 Sales Tax Fund 1,269,800 1,234,861 34,939 3% Measure O 2006 CIP Allocation 7,715,691 4,917,827 2,797,864 36% Administration Services 5,297,212 5,810,091 (512,879) -10% Non-Departmental Annual Payments 2,836,525 2,756,790 79,735 3% Community Development 1,996,822 1,680,784 316,038 16%
Police Department 6,905,599 6,702,366 203,233 3%
Recreation Services 901,370 916,482 (15,112) -2%
Public Works 3,430,898 3,023,372 407,526 12%
TOTAL EXPEDITURES 32,554,477 29,196,236 3,358,241 10%
%
Fav/(Unfav)
Consolidated General Fund Department Variances - Year-End Consolidated General Fund Department FY 2023-24
Adjusted Budget
FY 2023-24
Actuals
Dollar
Fav/(Unfav)
FY 2023-24 % of
Year-End Actuals Actuals
Personnel Costs $ 12,790,046 43.8%
Operating Costs 9,997,641 34.2%
Debt Service 310,018 1.1%
Capital Outlay 135,275 0.5%
Transfers Out 5,963,255 20.4%
Total $ 29,196,235
Expenditure Category

ATTACHMENT 1

KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2023-24
This fund accounts for the revenues derived from
Measure O-06, a local 1/2% sales tax approved by the
City's voters in November 2006. This budget included
$7.7 million allocated to ongoing CIP projects. A large amount of progress was made but with timing of project
completion there is a significant amount of savings that will be carried over in FY 2024-25.

The Administrative Services Department includes the
City’s Fiscal and Information Technology functions, as
well as Non-Departmental expenditures. This budget
included a line item reflecting budgeted salary savings for the entire Consolidated General Fund instead of
budgeting these savings within each specific
department. This creates an overage at year-end due to
the salary savings actually happening in specific departments and discussed there due to the fluctuation of salary savings moving between different departments because of vacancies.

The Public Works Department includes the functions of
Government Buildings, Engineering, Auto Shop,
Administration, Park Maintenance, and Soto Sports
Complex Divisions within the Consolidated General
Fund. The majority of the favorable variance in this
department can be attributed to salary savings. For
simplicity. Some of the more significant variances
include:
 The Public Works Administration Division had a vacant Public Works Director/Assistant City Manager position and had a vacant Assistant Capital Projects Manager the first half of the fiscal year. Additionally, one employee was on medical leave resulting in labor savings of approximately $229,600.
 The Parks Division has savings of approximately $160,000 related to the replacement of a bucket truck that has not yet been purchased.

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

The majority of the favorable variance in this
department can be attributed to salary savings and
lower spending in contractual services. Some of the
more significant variances include:
 The vacancy of the Building Permit Technician position during the first half of the fiscal year resulted in a portion of the Division’s overall labor savings totaling approximately $82,400.

Department: Measure O-06 Sales & Use Tax
Fund CIP Allocations
Division: Fund 218
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$2,762,925 savings
Department: Administrative Services
Division: Various (4120, 4140, 4145)
Issue: Overall savings in Transfers Out to
CIP Projects and debt service
Impact to Consolidated General Fund:
$512,879 overage
Department: Public Works
Division: Various (4213, 4301, 4305, 4307,
4420, 4430)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$407,526 savings
Department: Community Development
Division: Various (4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to Consolidated General Fund:
$316,038 savings

ATTACHMENT 1

 Contractual services for the Planning Division had savings of approximately $227,600 related to the Comprehensive General Plan Update, this is an ongoing update that is anticipated to be carried over in FY 2024-25.

Police Services includes the functions of Administration, Patrol Services, Support Services, and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed in total rather than by individual divisions. Some of the more significant variances include:
 The Police Department has had vacancies throughout the fiscal year and one medical leave, resulting in labor savings of approximately $107,700.
 The Police Department administers the ABC Grant and OTS Traffic Enforcement program that operate on the federal fiscal year from October 1, 2023, to September 30, 2024, these programs had savings totaling $72,300 that is anticipated to be carried over in FY 2024-25.

KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – Consolidated General Fund Revenue
As reflected in Table 4, actual revenue exceeded the Adjusted Budget by $839,649. Property Tax, Measure O-2006 Sales Tax, User Fees, and Franchise Fees revenues are all showing positive results while Transfers in and Other Revenue reflect an unfavorable variance. A more detailed discussion is included below to help explain actual revenue variances.

Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes.

Property tax revenues ended the year in a favorable position by $495,434, or 8% above the Adjusted Budget. Property tax collected grew 4.8% over the previous fiscal year, as the housing market continues to rise. Property tax represents 26.5% of the City’s annual revenue.

Property Tax $ 6,327,486 $ 6,822,920 $ 495,434 8%
Sales Tax 5,268,158 5,158,345 (109,813) -2%
Measure O-06 Sales & Use Tax 2,962,000 3,283,349 321,349 11% Transient Occ. Tax 1,545,000 1,407,882 (137,118) -9%
Property Tax in Lieu of VLF 2,001,300 2,129,113 127,813 6% Franchise Fees 795,600 960,744 165,144 21%
License & Permit Fees 579,500 549,661 (29,839) -5%
User Fees 521,500 916,310 394,810 76%
Planning Fees 371,500 485,561 114,061 31%
Recreation Fees 415,867 574,162 158,295 38%
Transfers In 3,114,066 2,755,008 (359,058) -12%
Other Revenue 992,640 691,211 (301,429) -30%
TOTAL 24,894,617 25,734,266 839,649 3%
% Fav/(Unfav)
Consolidated General Fund Revenue Variances - Year-End
REVENUE BY CATEGORY FY 2023-24
Adjusted Budget
FY 2023-24
Actuals
Dollar
(Unfav)/Fav
Department: Police Services
Division: Various (4201, 4203, 4204, 4209)
Issue: Overall savings in salaries and
benefits and contractual services
Impact to Consolidated General Fund:
$203,233 savings

ATTACHMENT 1

Sales Tax and Measure O 2006 Sales Tax Fund – Actual Sales tax is lower than anticipated, while Measure O 2006 Sales Tax exceeded the Adjusted Budget by $321,349, or 11%. Certain business categories like building and construction, online shopping, general consumer goods, fuel and service stations, and food and drugs continued to show strong sales tax receipts and exceeded expectations.

Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $137,118 unfavorable variance to the Adjusted Budget. TOT revenues appear to have hit a steady rate of increase compared to the large increase experienced in FY 2022-23.

Property Tax in Lieu of Vehicle License Fees (VLF) – Actual Property tax in lieu of VLF revenue exceeded the Adjusted Budget by $127,813, or 6% above the Adjusted Budget.

Franchise Fees – The City received Franchise Fees from Charter Communication, Waste Connections, College Towning, Southern California Gas, PG& E, and Phillips 66. Franchise Fee revenues ended the year in a favorable position by $165,144, or 6% above the Adjusted Budget.

License & Permit Fees, User Fees, and Planning Fees – License and permit revenue is below the Adjusted Budget by $29,839. Planning revenue exceeded the Adjusted Budget by $114,061. Revenue in this category is customer driven and fluctuates over the course of a year as well as year over year based on demand.

Recreation Fees – Recreation revenue is above the Adjusted Budget by $158,295.

Other Revenues – This revenue category includes business license tax, fines, revenue from other government agencies, charges for services and any other revenues accounts received in the consolidated general fund. The largest variance in this category is related to three revenue accounts The expense recovery for police vehicles revenue related to the sale of surplus Police Patrol vehicles has not taken place since the new leased vehicles have not yet been received. This results in a revenue shortfall of approximately $301,429. The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the general plan update totaling $227,600 and Retraining Scholarship Program totaling $21,500. Once these funds are spent for these projects, the revenue will be recognized at that time. The remainder of the variance is related to the Expense Recovery budget for the sale of the Police Fleet vehicles. The City has not yet sold these vehicles due to the long lead time of receiving the new fleet vehicles.

ATTACHMENT 1

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

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

EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of the FY 2023-24 was 5.1%. This equates to four (4) vacant positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks employees that separated during the period, the vacancy rate only looks at vacancies at the end of the period. The costs associated with turnover include the cost of advertising new positions, training, overtime, lowered productivity, and workload balance.

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

ATTACHMENT 1

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

Project Fund
Budget FY
2023-24
Current
Status
Project Budget
Expended
191 Tally Ho Sales Tax $ 110,000 Complete $ 86,826
Lift Station 3
FEMA/CalOES/Sales
Tax $ 850,000 Complete $ 67,475
Financial Management Software Sewer/Water/Sales Tax $ 413,000 In Progress $ 89,238 Women's Club Lighting Project Donations $ 821 In Progress $ - Public Safety Video Cameras COPS/Sales Tax $ 1,125,000 In Progress $ 162,076 Replacement Generator at Fire
Station 1
Other Gov
Agencies/General/Sales
Tax $ 610,714 Complete $ 474,788
Arroyo Grande Creek
Remediation
Sales Tax, FEMA,
CalOES $ 400,000 In Progress $ 188,638
Active Transportation Plan ATP/Sales Tax $ 250,000 In Progress $ 105,783 Bridge Street Bridge Habitat HBP $ 100,290 In Progress $ 102,799 Swinging Bridge Rehabilitation Sales Tax $ 1,100,292 Complete $ 727,213 Arroyo Grande Creek Sales Tax $ 6,300 In Progress $ 21,299 Pavement Management
Program
USHA/General/SB1/Sale
s Tax/General Fund $ 6,825,153 In Progress $ 5,264,820
Sidewalk Repairs and Sales Tax/CDBG $ 586,644 In Progress $ 486,776 Traffic Way Bridge Replacement HBP/Sales Tax $ 1,165,593 In Progress $ 560,802 Trenchless Sewer Rehabilitation -
El Camino Real to West Branch ARPA $ 282,000 Complete $ 188,378 Phased Mains Replacement -
South Halcyon Road, Cornwall
Street to Fair Oaks Avenue Water Facility/ARPA $ 785,892 In Progress $ 705,531 Phased Main Replacement -
Highway
101 Crossing Upgrade, El ARPA/Water Fund $ 335,000 In Progress $ - Fire Station 1 Apparatus Bay
Doors Sales Tax $ 115,000 In Progress $ -
Galvanized Service Water $ 63,655 In Progress $ -
Fair Oaks Ave Active
Transportation Improvements,
Valley Road to Traffic Way
Developer/Other Gov
Agencies/Sales Tax $ 125,000 Not started $ -
Virginia Drive and S. Halcyon
Road Curb Ramp and Sidewalk CDBG $ 56,749 Not Started $ - Public Works Office Space Sales Tax $ 100,000 In Progress $ 1,006 City Hall Front Door ADA CDBG $ 53,341 Not Started $ -
Recreation Services /
Community Center Building Sales Tax $ 44,745 In Progress $ - Halcyon Road Complete Streets
HSIP/RSHA/USHA/Safe
Routes to
School/General/Sales
Tax/ATP $ 1,304,000 In progress $ 2,764
Water Well #11 Facilities Water Availability $ 42,771 Not Started $ -

ATTACHMENT 1

SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS Administrative and Previously-Approved Year-End Budget Adjustments The following year-end budget adjustments were previously approved by the City Council or are classified as administrative and not requiring City Council approval.

Administrative Services Department: Appropriated funds for two budget adjustments reviewed in the Third Quarter Financial Status Report. Reallocating funds for two CIP Projects:
 $10,000 from the 2022 Pavement Management Program to the Corrugated Metal Pipe (CMP) project this fiscal year will enable the City to capitalize on the presence of a contractor with video equipment completing work on the sewer trenchless repair project to gather information necessary for FY 2024-25 CMP lining scheduled for next fiscal year.  $291,200 from the Phased Main Replacement under Highway 101 to Crossing Upgrade project that has not yet started to the other two Phased Main Replacement projects that are near completion or expected to be completed in the ARPA deadline timeframe.

Approved at the May 14, 2024, City Council meeting, Item 9.c.

Administrative Services Department: Approved a budget adjustment request in the amount of $58,800 to amend the Agreement with A-Town AV to upgrade the Audio/Video system in the Council Chamber.

Approved on April 9, 2024, Council meeting, Item 9.d.

Capital Improvement Program: Approved a budget adjustment request in the amount $130,000 of ARPA Funds to fully fund the FCFA Apparatus Bay Doors Replacement Project that was originally budgeted with Measure O-2006 Local Sales Tax Fund. Approved on April 9, 2024, Council meeting, Item 9.g.

Water Fund: Approved budget adjustment totaling $514,200 from the Water Enterprise Fund Balance is needed to fund the City’s share of the CCB project preconstruction costs for FY 2023-24. Approved on April 9, 2024, Council meeting, Item 11.a.

ATTACHMENT 1

SECTION 5: UPDATE ON MAJOR CITY GOALS AND CAPITAL IMPROVEMENT PLAN This information is provided to keep the City Council apprised of the status of the Goal Status Reports to Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. The four major goals are:

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

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

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

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

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

CMO City Manager's Office
AS Administrative Services
LIS Legislative and Information Services
PD Police Department
PW Public Works
Rec Recreation Services
Fire Five Cities Fire Authority
CD Community Development
Key

ATTACHMENT 1

Goal Strategy Task/Action Carryover Action or New Responsible Department
Anticipated to
Start Completion Target Update
Funding 1. 1 Economic Development 1.1a Evaluate Economic Development Management Services New CMO 1Q FY2023-24 3Q FY 2024-25 In Progress

1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

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

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

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

1.1d 400 W. Branch Disposition and Development Agreement New CMO/CA/CD In Progress 2Q FY 2024-25 In Progress

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

1.1f Develop 1-3 Special Events that drive visitation during shoulder and winter months and build destination awareness New Rec In Progress 2Q FY 2024-25 In Progress

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

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

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

1.2d Bring Revenue ballot measure to Council for consideration Carryover
CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 In Progress

1.3 Evaluate Potential to Enable
Cannabis Businesses within City

1.3a Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

1.3b Prepare and adopt cannabis ordinance, if directed by the City Council New CD/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 Not started

1.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 4Q FY 2024-25 In Progress Fire Services 2.1 Work with Regional Partners on
Fire Services in 5 Cities 2.1a Pursue potential contract with the County to serve Oceano New Fire/CMO 3Q FY 2023-24 4Q FY 2023-24 In Progress

2.2 Funding for Fire Services 2.2a Consider including Public Safety in proposed Revenue measure New CMO/AS/LIS 3Q FY 2023-24 4Q FY 2023-24 Completed

ATTACHMENT 1

Infrastructure 3.1 Pursue Alternative Funding
Sources for Infrastructure Needs

3.1a Consider Community partnership for Mark M. Millis Community Center construction Carryover CMO/Rec/PW In progress 4Q FY 2024-25 In Progress

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

3.1c Collect FEMA reimbursement for January - March 2023 storm damage New AS In progress 3Q FY 2024-25 In Progress

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

3.2 Work with Regional Partners on
Infrastructure Projects

3.2a Support ongoing development and financing of Central Coast Blue project Carryover CMO/AS/PW In Progress 2Q FY 2024-25 In Progress

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

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

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

3.3a.ii. Traffic Way Bridge ROW Carryover CD/PW Completed 1Q FY 2024-25 Completed

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

3.3b Swinging Bridge Rehabilitation Carryover CD/PW Completed 2Q FY 2024-25 Completed

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

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

3.3b.iii. Swinging Bridge Construction New CD/PW Completed 2Q FY 2024-25 Completed

ATTACHMENT 1

3.3c Halcyon Complete Streets New CD/PW In Progress

3.3c.i. Halcyon Complete Streets Design New CD/PW 1Q FY 2024-25 1Q FY 2024-25 In Progress

3.3c.ii. Halcyon Complete Streets ROW acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-25 Not started

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

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

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

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

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

3.3f 2024 Pavement Management Program Design New CD/PW 2Q FY 2023-24 1Q FY 2024-25 In Progress

3.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 3Q FY 2024-25 Not started

3.3h Community Safety Camera Network Carryover Police/CD In Progress 4Q FY 2023-24 In Progress

3.3i Replacement Generator at Station 1 New CD/PW/Fire Completed 4Q FY 2023-24 Completed

3.3j Lift Station 3 New CD/PW Completed 1Q FY 2024-25 Completed

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

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

3.3m Concept plan/design for new Mark M. Millis Community Center Building New CD/PW/Rec 1Q FY 2023-24 3Q FY 2024-25 In Progress

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

ATTACHMENT 1

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

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

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

4.4 Baseline Analysis of Existing
and Future Business Needs 4.4a Survey Local Businesses Carryover Action CD 1Q FY 2023-24 4Q FY 2023-24 In Progress

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

4.5 Climate Action Plan New CD 2Q FY 2023-24 3Q FY 2025-26 In Progress

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

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

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

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

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

1 Item 9.d.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
September 24, 2024, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Ray Russom, Mayor Pro Tem Guthrie, Council Member Barneich, Council Member
George
Council Members Absent: Council Member Secrest
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, Assistant City Manager/Public Works
Director Bill Robeson, Fire Chief Scott Hallett,
Police Chief Michael Martinez, 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 took roll call.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only

2 Item 9.d.

None.

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring October 6-12, 2024 as "Fire Prevention Week" Mayor Ray Russom read the Honorary Proclamation Declaring October 6-12, 2024 as "Fire Prevention Week". Five Cities Fire Authority (FCFA) Chief Hallett and members of the FCFA accepted the Proclamation and acknowledged Captain Leathers who has been coordinating the Burn Relay for years. The next Burn Relay will be on October 10th and there will be an Open House at the FCFA on October 12th at 10 a.m.

No action was taken on this item.

6.b Introduction of New Police Officers - Bradley Pullen and Vincent Spencer Chief Martinez introduced new Police Officers, Bradley Pullen and Vincent Spencer and highlighted their educational and professional background. City Clerk Matson administered the Oath of Office.

6.c City Manager Communications
Assistant City Manager/Public Works Director Robeson provided information regarding upcoming Virtual Town Hall Meetings on October 8th and 10th regarding Measure E-24; City booth at the Harvest Festival; Movie Night at Harvest Festival on Friday, September 27th; Diaper Derby at Harvest Festival on Saturday, September 28th; Active Transportation Plan Workshop on September 26th; and the Wireless Telecommunications Ordinance item continued by Planning Commission.

Assistant City Manager Robeson and City Clerk Matson responded to questions from Council.

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. Five Cities Fire Authority

3. San Luis Obispo County Mayor's Meeting

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

5. Other

7.b MAYOR PRO TEM GUTHRIE:

1. County Water Resources Advisory Committee (WRAC)

3 Item 9.d.

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

3. Integrated Waste Management Authority Board (IWMA)

4. REACH Economic Development Roundtable

5. Other

7.c COUNCIL MEMBER BARNEICH:

1. Audit Committee

2. Homeless Services Oversight Council (HSOC)

3. Zone 3 Water Advisory Board

4. Other

7.d COUNCIL MEMBER GEORGE:

1. Five Cities Fire Authority

2. Visit SLO CAL Advisory Board

3. Other

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public were Aileen Loe, Alexandria Davis, Victor, Gaea Powell. Mayor Ray Russom gave three warnings to commenter Powell at the conclusion of the one minute comment period. Following non-compliance, Mayor Ray Russom called a recess in accordance with Government Code Section 54957.95 regarding disruptions.

City Council went on a recess at 6:35 p.m. and returned at 6:40 p.m.

Public comment continued. Speaking from the public were Michael Punsalon, Colleen Martin, and Randy. No further public comments were received.

Assistant City Manager Robeson 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. Mayor Pro Tem Guthrie made comments on Item 9.c. thanking former Committee Member CJ Horstman for his service and welcoming Fernando Garcia to the Committee.

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

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

4 Item 9.d.

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

9.a Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of August 16 through August 31, 2024.

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

9.c Consideration of Appointment to the Architectural Review Committee Approved the recommendation of Mayor Pro Tem Guthrie to appoint Fernando Garcia III to the Architectural Review Committee.

9.d Consideration of Appointment to the Community Service Grant Program Committee Appointed Alexandria Davis to the Community Service Grant Program Committee to fill a vacancy.

9.e Conflict of Interest Code Biennial Review and Resolution Amending the City of Arroyo Grande Conflict of Interest Code
Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING AN AMENDED CONFLICT OF INTEREST CODE FOR DESIGNATED POSITIONS".

9.f Contract Amendment No. 4 for Consulting Services with Consor Engineers, for Cost Increase and Time Extension Associated with Design, Environmental, and Construction Support Services for the Traffic Way Bridge Replacement Project Authorized the City Manager to approve Amendment No. 4 to the contract for consultant services with Consor Engineers for the following: 1) to extend the contract end date from October 31, 2024 to October 31, 2026; and 2) adjusted the not-to-exceed compensation to incorporate the additional services needed to address lengthened project schedule, design changes, right-of way and utility issues, and to include construction support services.

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

9.h Temporary Use Permit 24-006 Authorizing Temporary Closure of Branch Street for Halloween in the Village from 3:00 PM to 7:00 PM Tuesday, October 31, 2024; Applicant - Cheers! Arroyo Grande
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TEMPORARY USE PERMIT CASE NO. 24-006

5 Item 9.d.

AUTHORIZING “HALLOWEEN IN THE VILLAGE” ON THURSDAY, OCTOBER 31, 2024 AND

DIRECTING STAFF TO IMPLEMENT RELATED SAFETY MEASURES INCLUDING NO

PARKING ZONES AND STREET CLOSURES AND FINDING THE ACTION EXEMPT FROM CEQA"; and
2) Determined that this project is categorically exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

9.i General Plan Update Progress Report – September 2024 Received an update on the status of the Comprehensive General Plan Update project.

10. PUBLIC HEARINGS
None.

11. BUSINESS ITEMS
None.

12. COUNCIL COMMUNICATIONS
Council Member Barneich shared her excitement about the Harvest Festival on Friday and Saturday, September 27th-28th.

Council Member George expressed her appreciation for the Fire Department and their service to the community.

Mayor Pro Tem Guthrie reminded the community of the Harvest Festival and Parade starting at 4 p.m. on Friday, September 27th.

Mayor Ray Russom thanked the Harvest Festival Committee.

13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 6:52 p.m.
_________________________
Caren Ray Russom, Mayor
_________________________
Jessica Matson, City Clerk

Item 9.e.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Cancellation of the December 24, 2024, City Council Meeting DATE: October 8, 2024
RECOMMENDATION:

Cancel the second regular City Council meeting in December due to its proximity to the Christmas and New Year holidays.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There are minimal cost savings due to reduced staff time associated with agenda and meeting preparation.

BACKGROUND:

Traditionally, and in accordance with the City Council Handbook, the City Council has canceled the second regularly scheduled December meeting due to scheduling conflicts surrounding the holidays.

ANALYSIS OF ISSUES:

The City Council meets twice a month on the second and fourth Tuesdays. This year, the second regular meeting in December is scheduled for Tuesday, December 24, 2024. Due to the proximity to the Christmas and New Year holidays, there exists the potential for scheduling conflicts for the City Council, City staff, as well as members of the public due to vacation plans and scheduled City Hall holiday closures. Cancellation of the December 24, 2024, City Council meeting will avoid these conflicts.

ALTERNATIVES:

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

1. Cancel the December 24, 2024 meeting;

2. Do not cancel the December 24, 2024 meeting and take no further action;

3. Reschedule the December 24, 2024 meeting to a different date; or

4. Provide other direction to staff.

Item 9.e.

City Council
Cancellation of the December 24, 2024, City Council Meeting October 8, 2024

ADVANTAGES:

Canceling the December 24, 2024, meeting provides the City Council, staff, and the public an opportunity to plan a vacation and enjoy the holidays without being absent from a meeting or concerned about missing an important item for their vote or input.

DISADVANTAGES:

Cancellation of a regular meeting may result in heavier agendas at the prior and following meetings.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

Item 9.f.

B

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Community Development Director
BY: Shayna Gropen, Assistant Planner
SUBJECT: Temporary Use Permit 24-007 Authorizing Use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival
DATE: October 8, 2024
RECOMMENDATION:
1) Adopt a Resolution approving Temporary Use Permit 24-007 authorizing the use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival; and 2) Determine that this project is categorically exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No direct impact is anticipated as a result of this event. The applicant will cover the application fees. Additionally, the project stipulates that the applicant must provide sufficient restrooms and trash facilities for the event. The applicant will reimburse Cityrelated expenses incurred, which are expected to be minimal, if any.

BACKGROUND:

Cheers Arroyo Grande submitted an application for a Temporary Use Permit to utilize Heritage Square Park for a beer and wine festival to be held on Saturday, November 9, 2024. The proposed event is called the Arroyo Grande Beer and Wine Festival (Attachment 2). The net proceeds will go towards costs for Halloween in the Village, which is also organized by the applicant. Any remaining proceeds will be donated to support the installation of Christmas lights on buildings in the Village. The proposed event is expected to attract a substantial number of participants to Heritage Square Park in the Village.

A proposal for an event on City property, along with the request to reserve street parking adjacent to the event site, requires the approval of a Temporary Use Permit. Furthermore, the service and consumption of alcohol at Heritage Square Park may be permitted solely by City Council Resolution and is contingent upon the issuance of a public safety and welfare permit by the Chief of Police. The purpose of the Temporary Use Permit is to ensure that the event is conducted in a manner that is compatible with the surrounding

Item 9.f.

City Council
Temporary Use Permit 24-007 Authorizing Use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival
October 8, 2024

area and provides a successful experience for the applicant, attendees, neighbors, and the City. This event, which was successfully held in 2023, replaced the "Beer Feast," previously hosted at Heritage Square Park from 2016 to 2019.

Staff Advisory Committee
The Staff Advisory Committee (SAC) reviewed the proposed project on September 7, 2024. Members of the SAC, which includes staff from Police, Fire, and Public Works, reviewed various aspects of the project and determined that there would be no anticipated problems with parking, neighbors, or security. The SAC supported the project, provided it meets the conditions of approval outlined in the prepared Resolution.

ANALYSIS OF ISSUES:

Event Description
The applicant proposes to utilize Heritage Square Park between the hours of 6:00 am and 8:00 pm, with the event occurring between the hours of 12:00 pm and 4:00 pm. The hours outside of the event will be used for set-up and tear-down of the event. The applicant indicates this event will include approximately thirty (30) breweries, fifteen (15) wineries, three food vendors, and live music. The number of tickets available for the event will be limited to 700. As required by the Department of Alcoholic Beverage Control, waisthigh fencing will be installed at the back of the adjacent sidewalks to close the event, and only persons 21 years of age and older will be admitted. Live music is proposed at the Rotary Bandstand during the event. The applicant will provide security as approved by the Police Department.

Parking
The applicant is not requesting to reserve parking in City-owned lots, as is usually done for other Village events. Instead, they are requesting to reserve street parking immediately adjacent to the park for loading and unloading equipment, beverages for breweries and wineries, and attendees' pickup and drop-off by designated drivers, rideshare services, or other transportation arrangements.

Attendee Identification
The event will be accessible only to ticket holders. Presale tickets will be available, with additional tickets sold at the event. Attendees who have paid for beer and wine tastings will receive wristbands indicating their participation status. Designated drivers, who are allowed to attend and enjoy food, will receive a different wristband and will not receive a tasting glass. Individuals under 21 years old and those without wristbands will not be permitted to enter the event area. Private security will be on hand to remove anyone found in the event without the proper wristbands.

Restrooms
The applicant must ensure there are sufficient restrooms in addition to those available at Heritage Square Park. Previous events at the park have included extra portable

Item 9.f.

City Council
Temporary Use Permit 24-007 Authorizing Use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival
October 8, 2024

restrooms on Short Street next to the venue. The event map (Attachment 3) indicates three (3) restrooms outside the fenced area to meet this requirement.

ALTERNATIVES:

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

1. Adopt the Resolution approving TUP 24-007;

2. Modify and adopt the Resolution approving TUP 24-007;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

This event will offer a platform for local breweries and wineries to present their products, enhancing the City's visibility and stimulating economic activity within the community.

Additionally, net proceeds from the event will be allocated to Halloween in the Village, and the applicant will donate any remaining balance to support the installation of Christmas lights on buildings in the Village.

DISADVANTAGES:

The event is expected to attract a substantial crowd where alcohol consumption will occur, potentially leading to noise disturbances for nearby residents and an increased risk of impaired driving. To address these concerns, conditions of approval will include notifying residents and providing incentives for designated drivers. These measures are intended to mitigate potential negative impacts and ensure the event's success. Staff feedback indicated that no specific negative issues were reported from last year’s event.

ENVIRONMENTAL REVIEW:

The festival is categorically exempt from the California Environmental Quality Act (“CEQA”) under Section 15304(e) of the CEQA Guidelines, the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. Specifically, subsection (e) exempts temporary uses in land having negligible or no permanent effects on the environment.

The event is proposed at Heritage Square Park which is an established park that regularly accommodates events of this size, scale, and duration.

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. Additionally, the applicant shall mail or hand deliver notification of the event to all properties between Bridge Street and Whitely Street from Branch Street to Allen Street at least one week before the event.

Item 9.f.

City Council
Temporary Use Permit 24-007 Authorizing Use of Heritage Square Park for the 2024 Arroyo Grande Beer and Wine Festival
October 8, 2024

ATTACHMENTS:

1. Proposed Resolution

2. Applicant Letter

3. Event Map

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE APPROVING TEMPORARY USE PERMIT
NO. 24-007; AUTHORIZATION TO USE CITY PROPERTY FOR
A BEER AND WINE FESTIVAL ON NOVEMBER 9, 2024;
LOCATED AT HERITAGE SQUARE PARK; APPLIED FOR BY

CHEERS ARROYO GRANDE
WHEREAS, the organizers of the Arroyo Grande Beer and Wine Festival have requested the use of Heritage Square Park for a beer and wine festival; 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, the applicant will be responsible for costs associated with security, cleanup, and payment of all related fees and costs for use of City property and City employee time related to the event; and
WHEREAS, the project is in compliance with the California Environmental Quality Act (CEQA), it has been determined that this project is Categorically Exempt per Section 15304(e) of the CEQA Guidelines regarding minor temporary uses of land and that none of the exceptions to the Class 4 exemption set forth in State CEQA Guidelines section 15300.2 apply; and
WHEREAS, the City Council finds, after due study and deliberation that the following circumstances exist, in accordance with Arroyo Grande Municipal Code section

16.16.090.

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 period specified will not jeopardize, endanger or constitute a menace because the site will be contained via fencing, security will be provided, the attendees will be identified with wristbands, and restrooms will be provided 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.

RESOLUTION NO.

PAGE 2
The proposed site is adequate in size and shape to accommodate the temporary use without detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the site because the event will be contained by fences and the applicant will provide security, the proposed site functions as a permanent park, and is accustomed to a higher flow of visitors on the site.

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 Square Park is located in a commercial district that has ample public parking for visitors.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande hereby approves Temporary Use Permit 24-007, authorizing the use of City property as presented to the City Council on October 8, 2024, with the above findings and subject to the conditions as set forth in Exhibit "A", attached hereto and incorporated herein by this reference.

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

AYES:

NOES:

ABSENT:

The foregoing Resolution was passed and adopted this 8
th day of October, 2024.

RESOLUTION NO.

PAGE 3
_________________________________________

CAREN 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"

CONDITIONS OF APPROVAL FOR
TEMPORARY USE PERMIT NO. 24-007
This approval authorizes the use of Heritage Square Park and on street parking on the north side of Nelson Street, and east side of Short Street adjacent to the park for a beer and wine festival between 6:00 am and 8:00 pm on Saturday, November 9, 2024, with the event occurring from 12:00 pm to 4:00 pm.

General Conditions

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

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

3. The applicant shall comply with all the conditions of the City Council Resolution adopted on October 8, 2024.

4. Comply with all California Department of Alcoholic Beverage Control requirements applicable to the project.

5. The applicant shall agree to defend, indemnify and hold harmless the City, its agents, officers, and employees harmless, at its sole expense from any action brought against the City, its agents, officers, or employees because of said approval, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney’s fees which the City, its agents, officers, or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve the applicant of their obligations under this condition.

Public Works Department Conditions

6. The applicant is responsible for providing dumpster, trash bags and enough restroom facilities to serve the event. Any supplies the Public Works Department may need to provide must be reimbursed by the applicant.

7. The applicant 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.

8. The applicant 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.

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

10. Applicant is responsible for notifying the City of Arroyo Grande Public Works Department (805-473-5485), at least two weeks prior to the event date so that sprinkler heads can be marked for avoidance from damage during the event.

RESOLUTION NO.

PAGE 5
The applicant shall reimburse the City for any damage to the irrigation system at the park.

Engineering Division Conditions

11. The applicant shall provide restroom facilities, barricades, and signage as required.

12. The applicant shall provide a $1,000,000 comprehensive general liability insurance policy naming the City as additional insured by October 26, 2024.

13. The applicant 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

14. 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.

15. 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 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.

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

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

Police Department Conditions

18. All temporary "No Parking" signs shall be posted by the applicant a minimum of 48 hours prior to the event, stating the dates and times of restriction.

19. Private security personnel will be provided by the applicant, to the satisfaction of the Chief of Police.

20. Failure to provide private licensed security will result in AGPD Officers being assigned with expenses billed to the applicant.

Special Conditions

21. The applicant shall mail or hand deliver notification of the event to all properties between Bridge Street and Whitely Street from Branch Street to Allen Street at least one week before the event.

August 26, 2024
City of Arroyo Grande
300 East Branch Street Arroyo Grande, Ca 93420
To Whom it May Concern,
We are submitting the items below for departmental review.

Arroyo Grande Beer & Wine Festival - Saturday, November 9, 2024 We request the use of the lawns and bandstand at Heritage Square Park from 6:00a.m. -8:00p.m. on Saturday, November 9. The event hours will be from 12:00p.m.-4:00p.m.

The net proceeds will be going towards Trick or Treating in the Village and we will be donating the remaining balance to help pay for Christmas lights on buildings in the village.

Cheers Arroyo Grande will provide the necessary insurance policy to the city at least 2 weeks prior to the event. We will also obtain the necessary “Daily License Application/Authorization” from the Sate of California Department of Alcohol Beverage Control.

We will compensate the City for any extra expenses incurred as agreed upon. We will abide by all rules and regulations that will be discussed and agreed upon. Cheers Arroyo Grande will provide and place all barricades and signs as necessary. The ABC requires that the Heritage Square area be fenced off with waist high fencing. This will be done by Cheers Arroyo Grande. Entry areas will be monitored and only persons over 21 years old will be granted admission. Cheers Arroyo Grande will provide security as approved by the City of Arroyo Grande Police Department. We will provide Swinging Bridge security as needed.

This is a community event which will be limited to 30 breweries and 15 wineries and distilleries, plus 3 food vendors. Attendance will be limited to 700 attendees. Cheers Arroyo Grande will provide music at the Rotary Bandstand for the event. Tickets for the event are $70 for general admission and $30 for designated drivers. There will be two different colored wristbands to differentiate between designated drivers and general admission tickets.

Thank you for your consideration.

Sincerely,
Laura Beth Amy and Mindy Calmenson
Cheers Arroyo Grande
ATTACHMENT 2

Attachment 3

Item 10.a.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director SUBJECT: Approval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street
DATE: October 8, 2024
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a six-month lease agreement, in substantially final form, between the City of Arroyo Grande and RE/MAX Success for the City-owned property at 214 East Branch Street, also known as Old City Hall, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Determine that the approval of a short-term lease agreement for 214 East Branch Street 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). The lease of the property, where no development or demolition is proposed, constitute an administrative activity of the City. Alternatively, the adoption of resolution to enter a lease agreement is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The subject six-month lease will keep an active lease term at the site, and the monthly rental cost is unchanged from the City’s prior lease on the site, so minimal financial impact is projected at this phase. The temporary lease is intended to allow for further specialized evaluations of specific aspects of the building, which will provide accurate cost estimates regarding possible future building repairs and a longer-term disposition.

Item 10.a.

City Council
Approval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street October 8, 2024

BACKGROUND:

Soon after the City Council's February 23, 2010, decision to purchase the property at 300 East Branch Street (the former Farm Credit building) to establish a new City Hall, staff was relocated from the Old City Hall building at 214 East Branch Street.

On October 12, 2010, the City Council approved a lease agreement with RE/MAX Del Oro Property Inc. for the entire 3,200-square-foot Old City Hall building. RE/MAX Del Oro, the tenant for 14 years, is in the process of terminating its lease, which expires on October 8, 2024.

ANALYSIS OF ISSUES:

RE/MAX Success is the new tenant that would utilize the Old City Hall space during a sixmonth lease period. The former owner of RE/MAX Del Oro has retired, and a new lease needs to be executed with RE/MAX Success.

The new six-month lease rental cost is proposed to remain at $4,202.84 the ending rental cost for RE/MAX Del Oro. The proposal not to change the rent amount is based on the need for the City to evaluate the building further, the inconvenience of inspectors entering all parts of the building over several weeks, and to evaluate City’s options with respect to a longer-term disposition of the City owned site. The City has evaluated the site and the need to conduct further inspections, and find this short-term lease at the negotiated rental rate is not less that the fair market value of the site at its highest and best use in the shortterm.

Most of the existing terms of the original lease (except for the lease period and a Repair and Maintenance clause) will be applied to the new lease. Key terms of the proposed lease are as follows:
 A six-month term.
 The tenant will pay possessory interest taxes.
 The tenant will be provided half of the basement at no additional cost, and the City has reserved the right to continue using the other half for storage.  The tenant will pay operating expenses, including electric, gas, cable, telephone, water, sewer, and garbage.
 RE/MAX Success to carry a $1,000,000 liability insurance policy naming the City as an additional insured.

As described above, a previous lease provision that has been removed for this temporary six-month lease period is a “Repair and Maintenance” clause, stating, “Tenant shall repair and maintain the roof, structural foundations, exterior walls, Common Areas, the heating, air conditioning, electrical, plumbing and water systems, if any.” This term is not applicable during this phase of additional building condition evaluations. This term may be reinstated if a long-term lease or other disposition is pursued.

Item 10.a.

City Council
Approval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street October 8, 2024

The next step is to conduct more detailed inspections of certain facets of the building, such as the electrical system, foundation, heating, ventilation, and air conditioning (HVAC), and compliance with the Americans with Disabilities Act (ADA). After these inspections are completed and accurate costs are formulated, staff can better provide more in-depth information on which the City Council can base future decisions regarding this City-owned property.

The City substantially complied with the notice requirements associated with the “economic opportunity” statutes (Government Code section 55200, et seq.). As articulated in the City’s published notice, the proposed six-month lease allows the City to convert office space into income-producing space over a short-term period while it investigates options for a longer-term property disposition of the real property and represents the highest and best use of the property in the short-term.

The proposed six-month lease does not constitute a “disposition” under the Surplus Land Act. Specifically, the proposed six-month lease is: (A) for a term of 15 years or less; and (B) there will be no development or demolition on the site over the six-month term. (Government Code section 54221(d)(2).).

ALTERNATIVES:

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

1. Authorize the City Manager to execute a six-month lease agreement between the City of Arroyo Grande and RE/MAX Success for the City-owned property at 214 East Branch Street subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney;

2. Do not approve a six-month lease agreement with RE/MAX Success, which may result in the building's vacancy due to upcoming inspections and possible future repairs; or

3. Provide other direction to staff.

ADVANTAGES:

A six-month lease will allow for further specialized evaluations of specific aspects of the building while allowing the City to consider longer-term options, including a possible disposition under the Surplus Land Act. These evaluations will provide accurate cost estimates regarding possible repairs and potentially aid in developing long-term lease conditions and/or other options for the property.

DISADVANTAGES:

The six-month lease provides only a short-term solution for the City-owned site.

ENVIRONMENTAL REVIEW:

The approval of a short-term lease agreement for 214 East Branch Street, is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential

Item 10.a.

City Council
Approval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street October 8, 2024

to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378). The lease of the property, where no development or demolition is proposed, constitute an administrative activity of the City. Alternatively, the adoption of resolution to enter a lease agreement is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment.

PUBLIC NOTIFICATION AND COMMENTS:

A Public Hearing Notice and Summary of Lease Agreement were published in the newspaper on September 26, 2024, and October 3, 2024, and published on the City’s website, in substantial compliance with the “Economic Opportunities” statutes under State law. 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. Lease Agreement in Substantially Final Form

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER

TO EXECUTE A SIX-MONTH LEASE BETWEEN THE CITY

OF ARROYO GRANDE AND RE/MAX SUCCESS FOR THE
CITY-OWNED PROPERTY AT 214 EAST BRANCH

STREET, ALSO KNOWN AS OLD CITY HALL
WHEREAS, the City of Arroyo Grande (“City”) owns the commercial property located at 214 E. Branch St., Arroyo Grande, California, 93420 (the “Property”). The Property is improved with a commercial office building and other improvements; and WHEREAS, RE/MAX Success is seeking to enter into a six-month lease agreement (“Lease”) with the City for a portion of the Property consisting of approximately 3,200 square foot building; and
WHEREAS, the City, on July 23, 2024 conducted a commercial building inspection and inspection report through Professional Inspection Services, a third-party inspection company; and
WHEREAS, the City, after review of the inspection report, found that building conditions such as the foundation, electrical, heating, ventilation and air-conditioning systems would need additional inspection; and
WHEREAS, the City and RE/MAX Success have agreed to a six-month lease to allow additional inspections of the building to occur before the City considers a longer-term disposition; and
WHEREAS, after the applicable building inspections have occurred and at the end of the six-month lease term, the Council will consider the resulting inspection information and direct staff on how to proceed with a longer-term disposition; and WHEREAS, the City substantially complied with the notice requirements associated with the “economic opportunity” statutes (Government Code section 55200, et seq.), and the proposed six-month lease allows the City to convert office space into income-producing space over a short-term period while City investigates options for a longer-term property disposition, and represents the highest and best use of the property in the short-term; and WHEREAS, the proposed six-month lease does not constitute a “disposition” under the Surplus Land Act, as the proposed six-month lease is: (A) for a term of 15 years or less; and (B) there will be no development or demolition on the site over the six-month term. (Government Code section 54221(d)(2)).

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

ATTACHMENT 1

RESOLUTION NO.

PAGE 2

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

2. The term of this Lease (“Initial Term”) shall be for a period of six (6) months, unless terminated earlier.

3. Tenant shall pay to Landlord as rent for the Premises the sum of Four Thousand Two Hundred Two and 84/100 Dollars ($4,202.84) per month (“Rent”).

4. The City Council authorizes the City Manager to execute a six-month lease agreement (attached in substantially final form) between the City of Arroyo Grande and RE/MAX Success for the City-owned property at 214 East Branch Street, also known as Old City Hall, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney.

5. Adoption of this Resolution for a short-term lease agreement for 214 East Branch Street, 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). The lease of the property, where no development or demolition is proposed, constitute an administrative activity of the City.

Alternatively, the adoption of the resolution to enter a lease agreement is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment.

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 8th day of October, 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

LEASE AGREEMENT

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1 LEASE AGREEMENT

1. PARTIES: This Lease (“Lease”) is made and entered into as of this _____ day of __________, 2024 (“Effective Date”) by and between CITY OF ARROYO GRANDE, a California municipal corporation (“Landlord”), and p16:3, a California C corporation DBA RE/MAX SUCCESS (“Tenant”). The Landlord and Tenant are sometimes referred to individually as a “Party” and collectively as the “Parties.”

2. PROPERTY. Landlord owns the commercial property located at 214 E. Branch St., Arroyo Grande, California, 93420 (the “Property”). The Property is improved with an industrial office building and other improvements.

3. PREMISES: Landlord hereby leases to Tenant and Tenant hereby leases from Landlord a portion of the Property consisting of approximately 3,200 square feet, referred to herein as the "Premises" and shown on Exhibit A. The Property also contains common areas which Tenant may use on a non-exclusive basis in common with other tenants of the Property, consisting of parking area, sidewalks, driveways, entrances and public walkways necessary for access of the Property (the “Common Areas”). Tenant’s non-exclusive right to use the Common Area shall be considered part of the Premises. Tenant’s proportionate share of the Property is agreed to be % (“Proportionate Share”), which represents the rentable square footage of the Premises to the total rentable area of the Property. Tenant shall be entitled to use approximately % of basement space, in the western portion of the Premises. Landlord reserves the right to use the approximately 50% of basement space, in the eastern portion of the Premises.

4. TERM: The term of this Lease (“Initial Term”) shall be for a period of six (6) months from and after the Effective Date of this Lease, terminating on __________________, 202_____, unless terminated earlier. Upon expiration of the initial term of this Lease, if no new lease agreement is executed and the Tenant remains in possession of the property with the consent of the Landlord, this Lease shall continue on a month-to-month basis under the same terms and conditions.

Either party may terminate this Lease by giving the other party written notice at least ninety (90) days in advance.

5. OCCUPANCY. Tenant acknowledges it has been in occupancy of the Premises since on or about , under a sublease from DEL ORO PROPERTIES, INC., a California corporation d/b/a RE/MAX Del Oro, which entered into that certain Lease Agreement dated April 27, 2021 with Landlord (“Prior Lease”). Accordingly, the Prior Lease is hereby terminated by the execution of this Lease (except for such provisions which expressly survive). Tenant shall retain possession of the Premises on the Initial Term subject to all terms and conditions of this Lease, and provided Tenant delivers an insurance certificate to Landlord upon execution. The effectiveness of this Lease is conditional upon Tenant’s delivery of the insurance certificate and first month's rent and security deposit.

6. RENT:Tenant shall pay to Landlord as rent for the Premises the sum of Four Thousand Two Hundred Two and 84/100 Dollars ($4,202.84 ) per month (“Rent”).

EXHIBIT A

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2 (a) Late Charge. Tenant acknowledges that late payment by Tenant to Landlord of rent will cause Landlord to incur costs not contemplated by this Lease. If any installment of rent due from Tenant is not received by Landlord within five (5) days after it becomes due, Tenant shall pay to Landlord an additional sum of 5% of the overdue rent as a late charge. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant. Acceptance of any late charge shall not constitute a waiver of Tenant's default with respect to the overdue amount or prevent Landlord from exercising any of the other rights and remedies available to Landlord.
(b) Interest on Unpaid Rent. Rent or other charges under this Lease not paid within five (5) days of the date due shall, in addition to any late charges under Section 6(a) above, bear interest at the lesser of the maximum legal rate or 10% per annum from the date due until paid. (c) Annual Adjustment. Beginning on the first anniversary of the Commencement Date, Base Rent shall increase annually at the end of each 12-month period by the greater of (i) four percent (4%) or (ii) increase in the Consumer Price Index (“CPI”) as determined by the U.S. Bureau of Labor Statistics for all Urban Consumers for the San Francisco/Oakland/San Jose Metropolitan Area over the previous year. Should the CPI be discontinued, the index used for comparison shall be a comparable index as designated by the Bureau. It is recognized by both parties that the Index for any month is not published for approximately two months. Tenant shall, therefore, continue to pay the current rental paid by Tenant until such time as the new rental is calculated and, at that time, Tenant shall pay within ten (10) days of notice of the new Base Rent the new amount plus arrearages. In no event shall Base Rent ever decrease below the prior year’s Base Rent even if the CPI is negative. In such event, the Base Rent shall remain the same (d) Place of Payment of Rent. Rent, and all other sums which shall become due under this Lease, including but not limited to late charges and any additional charges owed by Tenant shall be payable by hand delivery or mail at 300 E. Branch St., Arroyo Grande, CA 93420, or at such other place as Landlord may designate from time to time in writing. Mailed payments must be received (not postmarked) by Landlord by the date due.

7. CONDITION OF, AND IMPROVEMENTS TO, PREMISES.
(a) Improvements. Under this Lease, Landlord shall have no obligation or responsibility, actual or implied, to install, construct, accommodate, or make any improvements to the Premises prior to, or as a condition of, Tenant's occupation of the Premises. (b) As-Is Condition. Tenant warrants and agrees that Tenant is currently in possession of the Premises. Tenant agrees to take possession of the Premises under this Lease in its AS-IS condition (which exists on the date this Lease is signed). Landlord makes no representations regarding the condition, status, compliance with laws or suitability for a particular purpose for Tenant's use.
(c) Condition Upon Surrender. Upon termination of this Lease, Tenant shall surrender the Premises to Landlord in as good condition as when originally received, ordinary wear and tear and damage by fire, earthquake, flood or act of God excepted, and including any repairs or improvements made by Tenant. If Tenant fails to maintain the Premises in good order and repair, after

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3 thirty (30) days' prior written notice, Landlord may, at its option, make such repairs, and Tenant shall pay the reasonable cost thereof as additional rent hereunder within ten (10) days after receipt of a written statement therefor. In the event the giving of thirty (30) days' prior notice may result in additional damage to the Premises, Landlord may make such repairs, at Tenant's expense, without thirty days' prior written notice.
(d) Inspection by Certified Access Specialist. Landlord discloses that the Premises have not undergone inspection by a Certified Access Specialist as referenced in California Civil Code Section 1938 subsection (e) which provides: "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." Pursuant to the foregoing Section 1938(e), Tenant acknowledges and agrees that, if Tenant wishes to have the Premises inspected by a CASp: (i) Tenant must notify Landlord on or before the date when Tenant executes this Lease pursuant to the election below; (ii) the inspection will be at Tenant's sole cost and expense; (iii) the inspection must be scheduled through Landlord and in coordination with the Building’s property manager; (iv) any repairs or modifications necessary to correct any violation of construction-related accessibility standards that is noted in the CASp report shall be Tenant’s responsibility; and (v) Tenant must provide a copy of the CASp report to Landlord on completion. By initialing below, Tenant represents that:

Tenant wishes to have a CASp inspection of the Premises Initials: ______________ Tenant hereby waives its right to have a CASp inspection of the Premises Initials: ____________

8. USE: Tenant shall use and occupy the Premises only for general office use (the “Agreed Use”), or any other legal use which is reasonably comparable thereto, and for no other purpose.

Tenant shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage to neighboring properties.

9. USES PROHIBITED. In addition to uses prohibited pursuant to Paragraph 7, Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which is not within the permitted use of the Premises which will in any way increase the existing rate of or affect any fire or other insurance upon the Property or any of its contents, or cause a cancellation of any insurance policy covering the Property or any part thereof or any of its contents.

Tenant shall not use the Premises for any cannabis related uses, dispensary, manufacture, assembly, the sale of cannabis or accessories related to cannabis products. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Property or injure or annoy them or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed

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4 any waste in or upon the Premises. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to sell or solicit in any manner or store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Landlord or Landlord's designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shall occur then Landlord shall have the right, without notice, in addition to any other rights and remedies that it may have, to remove the property and charge the cost to Tenant, which cost shall be payable as additional rent immediately upon demand by Landlord.

10. COMPLIANCE WITH LAWS/HAZARDOUS MATERIALS.
(a) Tenant, at Tenant's expense, shall comply with and cause all of Tenant's agents to comply with all applicable laws, ordinances, rules and regulations of governmental authorities applicable to the Premises or the use or occupancy thereof, including, without limitation, the law commonly known as the Americans With Disabilities Act and California Code of Regulations Title 8, Sections 3281 through 3299 (collectively, "Laws").
(b) Tenant shall not cause or permit any Hazardous Materials, as defined below, to be brought upon, kept, used, discharged, deposited or leaked in or about the Premises or the Property by Tenant or any of Tenant's agents or by anyone in the Premises (other than Landlord or its agents, employees or contractors), except to the extent such Hazardous Materials are cleaning or office supplies customarily kept or used by typical tenants similar to Tenant and are kept and used in accordance with all applicable laws. If Tenant breaches the obligations stated in the preceding sentence, or if the presence of any Hazardous Material on the Premises or the Property caused or suffered or permitted by Tenant or any of Tenant's agents or by anyone in the Premises (other than Landlord or its agents, employees or contractors) results in contamination of the Premises or the Property, or if contamination of the Premises or the Property by any Hazardous Material otherwise occurs for which Tenant is legally liable, then Tenant shall indemnify, defend and hold Landlord harmless from any and all claims, damages, costs, liabilities and expenses (including, without limitation, diminution in value or use of the Property, attorneys' fees, consultant fees and expert fees) which arise during or after the Term as a result of such contamination. This indemnification shall include, without limitation, costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work on or under the Premises. "Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local, state or federal governmental authority or by common law decisions, including without limitation (i) all chlorinated solvents, (ii) petroleum products or by-products, (iii) asbestos and (iv) polychlorinated biphenyls.

11. WASTE; NUISANCE; QUIET ENJOYMENT. Tenant shall not suffer or commit any waste or nuisance on the Premises, nor shall Tenant interfere with or obstruct the rights of or disturb the quiet enjoyment of any other tenant or occupant of the building or injure or annoy them.

Tenant shall not use or allow the Premises to be used for any improper, immoral, or objectionable purposes, to be determined Landlord's sole and absolute judgment. (a) Tenant shall, at Tenant's sole cost and expense, maintain the Premises above, in good condition and repair. Said maintenance shall include but not be limited to, the interior of the Premises, exterior doors, walls and windows, all fixtures and equipment, including without limitation, heating and ventilation systems, plate glass, electrical wiring, plumbing fixtures, plumbing

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5 drains (from the interior of the Premises to the point of connection of Tenant's drainage system with the sanitary sewer system owned, managed, and/or maintained by the local municipality). Tenant hereby waives California Civil Code Sections 1932(1), 1941 and 1942 and any other applicable existing or future law, ordinance or governmental regulation permitting Tenant to make repairs at Landlord's expense.

12. SIGNS. All signs and graphics of every kind visible in or from public view or corridors, or the exterior of the Premises, whether inside or outside the Premises, shall be subject to Landlord’s prior written approval and shall be subject to compliance with any applicable Laws, including local sign ordinances and Historic Preservation laws.

13. TRADE FIXTURES AND EQUIPMENT. Tenant at its own expense shall provide and maintain all trade fixtures and equipment reasonably required to enable it to conduct its business in the Premises in a business-like manner. Tenant shall keep all trade fixtures and equipment clean and in good repair. Kitchens or other food preparation facilities shall be steam cleaned annually.

Landlord may inspect the Premises in its sole discretion to ensure good maintenance practices and review the current condition of the Premises. Such fixtures and equipment shall remain the property of Tenant, and Tenant may remove or if required to do so by Landlord, shall remove the same or any part thereof upon the termination of this Lease. Prior to lease expiration or earlier termination, Tenant shall repair at its own expense any damage to the Premises caused by its removal of said fixtures or equipment. All trade fixtures and equipment installed by Tenant pursuant thereto shall not be subject to, and shall be free of any lien for payment of rent by Tenant or for the performance of any other obligation of Tenant. Tenant shall keep Tenant's fixtures and equipment insured for full replacement value.

14. TAXES: Tenant will be and remain responsible for all property taxes and assessments, if any, which may be due or levied against the real property. Tenant recognizes and understands that this Lease may create a possessory interest subject to property taxes and that, if a possessory interest is created, Tenant shall be responsible for payment of property taxes levied against such possessory interest, and shall pay such possessory interest taxes directly to the taxing authority prior to delinquency.

15. UTILITIES: Tenant shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon.

16. DEFAULT AND LANDLORD'S REMEDIES.
(a) Default. The occurrence of any of the following shall constitute a default by Tenant:
(i) Tenant shall fail to pay when due any rent or any other monetary sum payable under this Lease.
(ii) Tenant shall fail to observe, keep or perform any of the other terms, covenants, agreements or conditions contained in this Lease if such default continues for a period of ten (10) days after written notice by Landlord specifying the nature of the default with reasonable particularity, unless the nature of the default is such that more than ten (10) days is required to cure it

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6 and Tenant commences to cure it within such ten (10) -day period and thereafter diligently pursues it to completion.
(iii) Tenant shall become bankrupt or insolvent or make a transfer in fraud of creditors, or make an assignment for the benefit of creditors, or take or have taken against Tenant any proceedings of any kind under any provision of the Federal Bankruptcy Act or under any other insolvency, bankruptcy or reorganization act and, in the event any such proceedings are involuntary, Tenant is not discharged from the same within thirty (30) days thereafter. (iv) A receiver is appointed for a substantial part of the assets of Tenant, and such receivership is not released within thirty (30) days. (v) The abandonment of the Premises by Tenant, or the vacation (hereby defined to be thirty (30) or more consecutive days of continual absence from the Premises) of the Premises by Tenant.
(vi) This Lease or any estate of Tenant hereunder shall be levied upon by any attachment or execution and such levy is not released within thirty (30) days.

Notices given under this Section shall specify the alleged default and the applicable Lease provisions, and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. (b) Landlord's Remedies. If any default by Tenant shall occur, and following notice of default as required by this Lease (for the period applicable to the default under the applicable provision of this Lease), Landlord shall have the following remedies in addition to all other rights and remedies provided by law or equity, to which Landlord may resort cumulatively or in the alternative. (i) Landlord shall have the immediate option to terminate this Lease and all rights of Tenant hereunder by giving written notice of such intention to terminate. In the event that Landlord shall so elect to terminate this Lease, then Landlord may recover from Tenant:
(1) The worth at the time of award of any unpaid rent which had been earned at the time of such termination; plus
(2) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus (3) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus (4) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and

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7 (5) At Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.

As used in Subparagraphs (a) and (b) above of this Section, the "worth at the time of award" is computed by allowing interest at the maximum rate an individual is permitted by law to charge. As used in subparagraph (c) above, the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).
(ii) In the event of the vacation or abandonment of the Premises by Tenant, or in the event that Landlord shall elect to reenter as provided herein or shall take possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, then Landlord shall have the remedy specified by Civil Code Section 1951.4, in which Landlord may from time to time recover all rental as it becomes due or relet the Premises or any part thereof for the account of Tenant on such term or terms and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable, with the right to make alterations and repairs to the Premises. In the event that Landlord shall elect so to relet, then rentals received by Landlord from such reletting shall be applied first, to the payment of any indebtedness, other than rent due hereunder, owed by Tenant to Landlord; second, to the payment of any cost (including commissions) of such reletting; third, to the payment of the cost of any alterations and repairs to the Premises; fourth, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. Should that portion of such rentals received from such reletting during any month, which is applied to the payment of rent hereunder, be less than the rent payable during that month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord upon demand. Tenant shall also pay to Landlord, as soon as ascertained, any and all costs and expenses incurred by Landlord in such reletting or in making such alterations and repairs not covered by the rentals received from such reletting.

No reentry or taking possession of the Premises by Landlord pursuant to this Section shall be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant or unless the termination thereof be decreed by a court of competent jurisdiction.

17. ASSIGNMENT AND SUBLETTING. Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the said Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the said Premises, or any portion thereof, without first obtaining the written consent of Landlord which may be withheld in Landlord’s sole discretion. If an assignment or subletting involves a use other than that permitted in this Lease, Tenant must comply with said use. Consent to one assignment, subletting, occupation or use by another person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under the terms of this Lease. No sublease or assignment shall release Tenant from continuing liability hereunder. In the event that Landlord shall consent to a sublease or assignment hereunder, Tenant shall pay Landlord reasonable attorney fees and costs incurred in connection with the processing of documents necessary to giving of such consent. Any excess consideration above the

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8 rental rate provided in this Lease Tenant is entitled to as a result of any assignment or sublease shall be divided and paid 50% to Tenant and 50% to Landlord; provided, however, that if Tenant is in default under this Lease, Landlord shall be entitled to all such excess consideration. (a) Procedures. Should Tenant desire to assign, transfer, sublet, mortgage, pledge, hypothecate or encumber this Lease or any interest therein (a “Transfer”), Tenant shall request, in writing, Landlord's consent to the proposed Transfer at least 60 days before the intended effective date of the proposed Transfer (which request shall be accompanied by a payment of Five Hundred Dollars ($500.00) to reimburse Landlord for costs incurred in connection with reviewing such proposed Assignment), which request shall include any information reasonably requested by Landlord to evaluate the proposed Transfer. Within 30 days after receipt of Tenant's request for consent to the proposed Transfer together with all of the above-required information, Landlord shall respond and shall have the right to: (a) consent to the proposed Transfer; (b) refuse to consent to the proposed Transfer; or (c) terminate this Lease, such termination to be effective 30 days after Tenant's receipt of Landlord's notice electing to so terminate. If Landlord shall exercise its termination right hereunder, Landlord shall have the right to enter into a lease or other occupancy agreement directly with the proposed transferee, and Tenant shall have no right to any of the rents or other consideration payable by such proposed transferee under such other lease or occupancy agreement. A consent to one Transfer by Landlord shall not be deemed to be a consent to any subsequent Transfer to any other party. (b) Standard for Consent. Tenant agrees that Landlord may refuse its consent to the proposed transfer on any reasonable grounds, and (by way of example and without limitation) Tenant agrees that it shall be reasonable for Landlord to withhold its consent if any of the following situations exist or may exist: (a) the proposed assignee, subtenant or transferee (each a "Transferee") proposes to change the use of the Premises from the permitted use pursuant to Section 8, and the new proposed use of the Premises (i) is a non-retail use; or (ii) is a use which would breach any exclusive use rights granted in writing to another tenant in the Property; or (iii) is a use which would duplicate the primary use of any other tenant or occupant in the Property; or (iv) in Landlord's reasonable opinion, is inconsistent with the tenant mix in the Property at the time of the request for Landlord's consent (excepting the use specified in Section 8 above); (b) the proposed Transferee's financial condition, net worth or liquidity is inadequate, based upon Landlord's reasonable business judgment consistent with generally accepted industry standards necessary to support all of the financial and other obligations of Tenant under this Lease; (c) the business reputation or character of the proposed Transferee is not reasonably acceptable to Landlord; (d) the proposed Transferee is not likely to conduct on the Premises a business of a quality substantially equal to that conducted by Tenant, including Landlord's ability to obtain Percentage Rent; or (e) the business of the proposed Transferee is not, in Landlord's reasonable judgment, a business that is likely to attract patrons to the Property, based on the demographics and clientele of the Property, or the business or reputation of the proposed Transferee is inconsistent with the image of the Property; (f) the proposed Transferee would, in Landlord's reasonable judgment, be unlikely to generate revenues in sufficient amounts to sustain the level of percentage rent obligations then being incurred by Tenant; (g) the proposed Transferee will create a vacancy elsewhere in the Property; (h) the proposed Transferee is a person with whom Landlord is, or recently has been, within the past three (3) months, negotiating to lease space in property owned by Landlord, including the Property; (i) Tenant is in default under the Lease, or has defaulted hereunder on more than three (3) occasions during the twelve (12) months preceding the request by Tenant; (j) the proposed business plan (or past business history) of the proposed Transferee indicates a possible likelihood of detriment to any portion of the Property or to the Rent to be received by Landlord hereunder; (k) the proposed

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9 Transferee will operate under a trade name other than that stated in this Lease; and/or (l) the proposed Transferee does not, in Landlord's reasonable judgment, have sufficient business experience (including substantial experience in comparable retail centers) to successfully operate a retail establishment in the Premises in the manner contemplated in the Lease.

18. DESTRUCTION OF PREMISES.
(a) Destruction Due to Risk Covered by Insurance. If, during the term of this Lease and any renewal term, the Premises or the Property and other improvements in which the Premises are located are totally or partially destroyed from a risk covered by insurance carried by either Tenant or Landlord for the Property, rendering the Premises totally or partially inaccessible or unusable, Landlord shall restore the Premises or the Property, and other improvements in which the Premises are located, to substantially the same condition as they were immediately before destruction if they can be repaired within 270 days from date of destruction. Such destruction shall not terminate this Lease. If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party. Provided, however, if the cost of the restoration exceeds the amount of proceeds received from the insurance, or the estimate of time to fully restore the Premises exceeds the lesser of 270 days or the remaining Term of the Lease, Landlord can elect to terminate this Lease by giving notice to Tenant within fifteen (15) days after determining that the restoration cost will exceed the insurance proceeds.
(b) Destruction Due to Risk Not Covered by Insurance. If, during the term of this Lease and any renewal term, the Premises or the Property and other improvements in which the Premises are located are totally or partially destroyed by a risk not covered by the insurance, rendering the Premises totally or partially inaccessible or unusable, Landlord can elect to terminate this Lease by giving notice to Tenant within fifteen (15) days after determining the restoration cost and replacement value.
(c) Abatement or Reduction of Rent. In case of destruction, there shall be an abatement or reduction of rent between the date of destruction and the date of substantial completion of restoration based on the extent to which the destruction interferes with Tenant's use of the Premises. (d) Waiver of Civil Code Sections. Tenant waives the provisions of California Civil Code Section 1932(2) and California Civil Code Section 1933(4) with respect to any destruction of the Premises.

19. INDEMNITY.
(a) Waiver of Claims. To the extent permitted by law, Tenant waives all claims against Landlord for damage to person or property arising for any reason. Tenant assumes all such risks for Tenant and any employees, licensees, invitees, agents, or contractors. (b) General Indemnity. Tenant shall indemnify, protect, defend (at Tenant's sole cost and with legal counsel acceptable to Landlord) and hold harmless, Landlord and Landlord’s affiliated entities, and each of their respective members, managers, partners, officers, employees,

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10 volunteers, council members, board members, lenders, agents, contractors, successors and assigns from and against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, and expenses, including all court costs and attorney fees, arising at any time during or after the Term, as a result (directly or indirectly) of or in connection with (i) default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or (ii) Tenant’s use of the Premises, the conduct of Tenant’s business or any activity, work or things done, permitted or suffered by Tenant or Tenant’s employees, agents, customers, visitors, invitees, licensees, contractors, assignees or subtenants (individually, a “Tenant Party” and collectively “Tenant Parties”) in or about the Premises, the Property, the Common Area or other portions of the Premises except as provided by law or for claims caused solely by Landlord’s gross negligence or willful misconduct. Tenant’s indemnity is not intended to nor shall it relieve any insurance carrier of its obligations under policies required to be carried by Tenant pursuant to the provisions of this Lease to the extent such policies cover the results of negligent acts or omissions of Landlord, its employees, agents, volunteers, contractors, council members, board members and officers or the failure of Landlord to perform any of its obligations under this Lease. The obligations of Tenant under this Section 20(b) shall survive the termination or earlier expiration of this Lease.
(c) Exemption of Landlord from Liability. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to the Premises and its property including, but not limited to, Tenant's fixtures, equipment, furniture and alterations, or illness or injury to persons in, upon or about the Premises, arising from any cause, and Tenant hereby expressly releases Landlord and waives all claims in respect thereof against Landlord, except only such claims as are caused solely by Landlord's gross negligence or willful misconduct. Tenant hereby agrees that Landlord shall not be liable for injury to Tenant's business or any loss of income therefrom or for damage to the property of Tenant, or injury to or illness or death of Tenant or any Tenant Party or any other person in or about the Premises, whether such damage, illness or injury is caused by fire, steam, electricity, gas, water or rain, or from the breakage, leakage or other defects of sprinklers, wires, appliances, ventilation, plumbing, air conditioning or lighting fixtures, or from any other cause, and whether said damage, illness or injury results from conditions arising upon the Premises, upon other portions of the Property or from other sources or places, and regardless of whether the cause of such damage, illness or injury or the means of repairing the same is inaccessible to Tenant, except only damage, illness or injury caused solely by Landlord's gross negligence or willful misconduct.

20. ENTRY BY LANDLORD. Except for emergencies such as fire, water intrusion and the like which may be at any time, Landlord and its agents shall have the right to enter the Premises at reasonable times to inspect and examine the same and to make such repairs to the Premises as the Landlord shall deem advisable, and to show the Premises to prospective tenants, buyers or lenders.

21. ATTORNEY’S FEES AND COURT COSTS: In the event of any legal action arising out of or concerning this Lease or any performance or nonperformance hereunder, the prevailing party shall be entitled to recover reasonable attorney’s fees and all other costs incurred in connection therewith or as a result thereof.

22. WAIVER; ACCORD AND SATISFACTION. No delay or omission in the exercise of any right or remedy of Landlord on any default by Tenant shall impair such right or be construed as a waiver. The receipt and acceptance by Landlord of delinquent rent shall not constitute a waiver of any other default; it shall constitute only a waiver of timely payment for the particular rent

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11 payment involved. No payment by Tenant or receipt by Landlord of a lesser amount than the rent payment herein stipulated shall be deemed to be other than on account of the rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue any other remedy provided in this Lease.

23. BINDING ON SUCCESSORS AND ASSIGNS: The terms and conditions of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns.

24. TIME OF ESSENCE: Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

25. NOTICE: All notices, statements, demands, requests, consents, approvals, authorizations, appointments or designations hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party, if sent by United States registered mail, return receipt requested, postage prepaid and addressed as follows:

TO TENANT: RE/MAX Success
Attn:
____________________________
________________, CA ________
TO LANDLORD: City of Arroyo Grande
Attn: City Manager
300 E. Branch St.,
Arroyo Grande, CA 93420
Any Party may change its address by giving notice to the other Party in the manner provided for in this Section.

26. WAIVERS: No waiver by Landlord or Tenant of any breach hereof or of any provisions hereof shall be deemed a waiver of any subsequent breach or provision (even if the subsequent breach is the same as said previous breach or provision).

27. DELIVERY OF RELATED DOCUMENTS: Tenant will execute or provide, as requested by Landlord, such other documents and information as may be reasonably necessary to carry out the purpose of this Lease.

28. NO RIGHT TO HOLDOVER: Tenant has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the event that Tenant holds over, then the Rent shall be increased to one hundred fifty percent (150%) of the Rent in effect during the last month of the Term. Nothing contained herein shall be construed as consent by Landlord to any holding over by Tenant. The foregoing provisions of this Section are in addition to and do not affect Landlord's right of re-entry or any rights of Landlord hereunder or as otherwise

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12 provided by law. If Tenant fails to surrender the Premises upon the expiration of this Lease, Tenant shall indemnify, protect, defend and hold Landlord harmless from all loss or liability, including without limitation, any claim made by any succeeding tenant founded on or resulting from such failure to surrender. Such indemnity shall survive the expiration of this Lease.

29. COVENANTS AND CONDITIONS; CONSTRUCTION OF AGREEMENT:

All provisions of this Lease to be observed or performed by Tenant are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the parties, but rather according to its fair meaning as a whole, as if both parties had prepared it.

30. ESTOPPEL CERTIFICATE. Tenant shall execute and deliver to Landlord within ten (10) days of request a commercially reasonable estoppel statement. Landlord and Tenant intend that any estoppel statement delivered pursuant to this Section may be relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the building or any interest therein and failure to execute and return such estoppel shall be a material breach of the Lease.

31. BINDING EFFECT; CHOICE OF LAW: This Lease shall be binding upon the parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located.

32. SEVERABILITY. If, for any reason whatsoever, any of the provisions hereof shall be unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect.

33. AUTHORITY/CONSENTS & APPROVALS. Each of the persons executing this Lease on behalf of Tenant warrants and represents that Tenant is a duly organized and validly existing entity, that Tenant has full right and authority to enter into this Lease and that the persons signing on behalf of Tenant are authorized to do so and have the power to bind Tenant to this Lease.

Tenant shall provide Landlord upon request with evidence reasonably satisfactory to Landlord confirming the foregoing representations. The approval of Landlord, wherever required in this Lease, shall mean the approval of the City Council.

34. ENTIRE AGREEMENT; AMENDMENT: This Lease constitutes the entire agreement between the Parties with respect to the lease of the Premises, and this Lease shall not be modified, amended, altered, or changed except with the written consent of Landlord and Tenant. Any provision of this Lease found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of this Lease. [SIGNATURES ON FOLLOWING PAGE]

13 IN WITNESS WHEREOF, the Parties hereto have caused this Lease to be executed and attested to by their proper officers hereunto duly authorized and their official seals to be hereto affixed, on the day and year first set forth above.

TENANT:

RE/MAX Success
By:

Name:

Its:

Date:_______________________________
LANDLORD:

CITY OF ARROYO GRANDE,
a California municipal corporation
By:

Name:

Its:

Date:_______________________________
APPROVED AS TO LEGAL FORM:

BEST, BEST & KRIEGER LLP
By:

Name: