Arroyo Grande City Council
June 24, 2025

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, June 24, 2025, 5:00 p.m.

In person at:

Arroyo Grande City Council Chamber
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 joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s Website.

CLOSED SESSION MEETING 5:00 P.M.:

1. CALL TO ORDER

2. ROLL CALL

3. FLAG SALUTE

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS

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

Pursuant to Government Code Section 54957 (b)(1)
Title: City Manager
b) CONFERENCE WITH LABOR NEGOTIATORS:

Pursuant to Government Code Section 54957.6
Agency Negotiator: City Attorney Isaac Rosen
Title: City Manager

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

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

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

June 24, 2025
a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Pursuant to Government Code Section 54957 (b)(1)
Title: City Manager
b) CONFERENCE WITH LABOR NEGOTIATORS:

Pursuant to Government Code Section 54957.6
Agency Negotiator: City Attorney Isaac Rosen
Title: City Manager

5.b Ordinances read in title only
Recommended Action:

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring July 2025 as "Parks Make Lives Better 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

7.a MAYOR RAY RUSSOM:

1. Audit Committee

2. California Joint Powers Insurance Authority (CJPIA)

3. Five Cities Fire Authority JPA Board

4. San Luis Obispo County Mayor's Meeting

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

6. Other

7.b MAYOR PRO TEM SECREST:

1. Air Pollution Control District (APCD)

2. Homeless Services Oversight Council (HSOC)

3. South County Chambers of Commerce Governmental Affairs Committee

4. Other

7.c COUNCIL MEMBER GUTHRIE:

1. Central Coast Community Energy (CCCE) Policy Board

2. Integrated Waste Management Authority Board (IWMA)

3. REACH Economic Development Roundtable

4. Other

7.d COUNCIL MEMBER MARAVIGLIA:

1. Five Cities Fire Authority JPA Board

2. Visit SLO CAL Advisory Board

3. Other

7.e COUNCIL MEMBER LOE:

1. Council of Governments/Regional Transit Authority (SLOCOG/SLORTA)

2. County Water Resources Advisory Committee (WRAC)

3. Zone 3 Water Advisory Board

4. Other

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 May 16 through May 31, 2025.

9.b Resolution Accepting the Fiscal Year 2025-26 Appropriation Limit (Gann Limit) (VALENTINE)
Recommended Action:
1) Adopt a Resolution adopting a tax proceeds expenditure appropriation limit for Fiscal Year 2025-26; and
2) Determine that establishing the appropriation limit for FY 2025-26 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

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

Approve the minutes of the Regular City Council Meeting of June 10, 2025, as submitted.

9.d Amendment to Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services (CULVER)
Recommended Action:

1) Approve the amended School Resource Officer Memorandum of Understanding authorizing the City Manager or designee to execute the amendment, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

9.e Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products (CULVER)
Recommended Action:
1) Adopt an Ordinance amending Section 8.36.020 and Section 8.36.050 of Title 8 of the Arroyo Grande Municipal Code relating to the sale of electronic tobacco products in Arroyo Grande; and
2) Find that the proposed ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable, indirect, physical change in the environment (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

9.f Contract with the County of San Luis Obispo for Animal Care and Control Services (CULVER)
Recommended Action:
1) Adopt a Resolution approving and authorizing the City Manager to execute a contract for Animal Care and Services (“Contract”), subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Find that adopting the Resolution and Contract approval are exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).

9.g Public Works Surplus Vehicles
(ROBESON)
Recommended Action:

Adopt a Resolution declaring specified equipment to be surplus and authorizing the sale or disposal thereof.

9.h Award Contract for Parkside Park Play Structure, PW 2024-09 (ROBESON)
Recommended Action:
1) Adopt a Resolution awarding a design-build construction contract for the Parkside Park Play Structure Project to Landscape Structures, Inc. for $223,980.25, and authorizing the City Manager to execute the design-build construction contract subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and

2) Authorize the City Manager to approve change orders of 10% of the contract amount, up to $22,398.02, for unanticipated costs during the construction phase of the Parkside Park Play Structure Project; and
3) Find the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15302 as replacement or reconstruction of existing structures or facilities.

9.i Monthly Water Supply and Demand Update
(ROBESON)
Recommended Action:

Receive and file the Monthly Water Supply and Demand Update.

9.j General Plan Update Progress Report – June 2025
(PEDROTTI)
Recommended Action:

Receive and file a progress report on the Comprehensive General Plan Update.

10. PUBLIC HEARINGS

10.a Directing the Levy of Annual Assessments for Fiscal Year 2025-26 (ROBESON)
Recommended Action:
1) Conduct a public hearing for the levy and collection of assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769; 2) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessment related to the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-26;
3) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessments related to the Grace Lane Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-26; and
4) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessments related to the Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769, pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-26.

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 two other Council Members.

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 Website and recorded for replay on Arroyo Grande’s Government Access Channel 20.

Item 6.a.

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Accounting Manager
SUBJECT: Cash Disbursement Ratification
DATE: June 24, 2025
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of May 16 through May 31, 2025.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,365,906.68 fiscal impact for the period of May 16 through May 31, 2025, that includes the following items:
 Accounts Payable Checks $460,147.80
 Payroll & Benefit Checks $905,758.88
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 2024-25 budget.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

Item 9.a.

City Council
Cash Disbursement Ratification
June 24, 2025

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

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

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

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

ATTACHMENTS:

1. May 16 through May 31, 2025 – Accounts Payable Check Register

2. May 16, 2025 and May 30, 2025 – Payroll & Benefit Check Register

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 06/ 0/2025 20:26
User: mschotborgh
Program ID: appdwarr

INV GROUP:052225PY TO FISCAL 2025/01 07/01/2024 TO 06/30/2025

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100723 CA ST EMPLOYMENT DEVEL DEPT
304802 M 05/29/25 110 2108 STATE WITHHOLDING 25,085.08
304802 M 05/29/25 110 2111 STATE DISABILITY INSURANCE 5,720.06 105981 CA STATE DISBURSEMENT UNIT
304804 M 05/29/25 110 2114 GARNISHMENTS 401.06
100039 CITY OF ARROYO GRANDE
304803 M 05/29/25 110 2104 FEDERAL WITHHOLDING 59,463.04 304803 M 05/29/25 110 2105 SOCIAL SECURITY 78,937.32
101730 PERS - ACTIVE MED
304902 M 06/03/25 100 1111 ACCOUNTS RECEIVABLE - FCFA 914.85 304902 M 06/03/25 10014099 5136 RETIREES HEALTH INSURANCE 6,416.98 304902 M 06/03/25 10014145 5131 HEALTH INSURANCE 300.37 304902 M 06/03/25 110 2109 HEALTH INSURANCE 171,558.02
304902 M 06/03/25 22064303 5136 RETIREES HEALTH INSURANCE 639.05 100729 PERS - RETIREMENT
304805 M 05/29/25 110 2106 PERS RETIREMENT 110,711.97
REPORT TOTALS 460,147.80

COUNT AMOUNT
TOTAL MANUAL CHECKS 5 460,147.80
** END OF REPORT - Generated by Megan Schotborgh **
Attachment 1

General Fund 426,133.17 5101 Salaries Full time 281,434.15 Streets Fund 18,267.70 5101 Volunteer Employee Retirement - Sewer Fund 14,308.22 5102 Salaries Part-Time - PPT 4,729.69 Water Fund 25,244.55 5103 Salaries Part-Time - TPT 4,554.14 483,953.64 5105 Salaries OverTime 17,789.58
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,043.80
5108 Holiday Pay -
5109 Sick Pay 8,951.26
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 15,946.39 5113 Vacation Pay 11,489.60
Public Works - Maintenance 636.75 5114 Comp Pay 3,162.42 Public Works - Enterprise 1,206.44 5115 Annual Leave Pay 14,405.07 Recreation - Administration 5116 Salaries - Police FTO 136.80 Recreation - Special Events - 5121 PERS Retirement 40,459.26 17,789.58 5122 Social Security 26,590.63
5123 PARS Retirement 137.68
5126 State Disability Ins. 4,165.45
5127 Deferred Compensation 791.66
5131 Health Insurance 55,915.81
5132 Dental Insurance 3,030.72
5133 Vision Insurance 695.53
5134 Life Insurance 416.48
5135 Long Term Disability 540.72
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 143.19
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,332.50
483,953.64
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
04/25/2025 - 05/08/2025
5/16/2025

BY FUND BY ACCOUNT
Attachment 2

General Fund 373,845.78 5101 Salaries Full time 289,828.55 Streets Fund 14,607.76 5101 Volunteer Employee Retirement - Sewer Fund 11,891.21 5102 Salaries Part-Time - PPT 3,606.84 Water Fund 21,460.49 5103 Salaries Part-Time - TPT 4,934.35 421,805.24 5105 Salaries OverTime 22,922.57
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,130.80
5108 Holiday Pay 1,326.52
5109 Sick Pay 6,140.77
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 21,021.62 5113 Vacation Pay 8,269.77
Public Works - Maintenance 511.77 5114 Comp Pay 5,053.26 Public Works - Enterprise 1,389.18 5115 Annual Leave Pay 6,603.51 Recreation - Administration - 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 40,344.06 22,922.57 5122 Social Security 26,262.25
5123 PARS Retirement 136.98
5126 State Disability Ins. 4,097.30
5127 Deferred Compensation -
5131 Health Insurance -
5132 Dental Insurance -
5133 Vision Insurance -
5134 Life Insurance -
5135 Long Term Disability -
5137 Leave Payouts
5142 Unemployment Insurance -
5143 Uniform Allowance -
5144 Car Allowance -
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 147.71
5150 Bi-Lingual Pay -
5151 Cell Phone Allowance -
421,805.24
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
05/09/2025 - 05/22/2025
5/30/2025

BY FUND BY ACCOUNT
Attachment 2

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services SUBJECT: Resolution Accepting the Fiscal Year 2025-26 Appropriation Limit (Gann Limit)
DATE: June 24, 2025
RECOMMENDATION:
1) Adopt a Resolution adopting a tax proceeds expenditure appropriation limit for Fiscal Year 2025-26; and
2) Determine that establishing the appropriation limit for FY 2025-26 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

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

BACKGROUND:

Proposition 4, known as the Gann Initiative, was approved by California voters in 1979, adding Article 13B to the California Constitution. This Article established an annual limit on the appropriations of tax proceeds for government agencies, also known as the Gann Limit. In 1990, the article was modified by Proposition 111 and SB 88, which included new adjustment formulas that allow cities a choice in methodologies for determining both the annual growth and inflation factors. The annual population growth factor can be calculated by using the greater of the City or the County population growth. Agencies have a choice of using the growth in California per capita personal income or the growth in non-residential assessed valuation due to new construction within their city. The City’s calculation uses the changes in California per capita personal income and the County of San Luis Obispo’s population as adjustment factors.

In May 2025, the California Department of Finance released population and per capita personal income information. The population between January 2024 and January 2025 for the City decreased by six-tenths of one percent (-0.6%) and the County population decreased by zero point one percent (-0.1%). For FY 2024-25, the change in per capita

Item 9.b.

City Council
Resolution Accepting the Fiscal Year 2025-26 Appropriation Limit (Gann Limit) June 24, 2025

personal income from the prior year increased by six and forty-four hundredths percent (6.44%).

In accordance with Proposition 111, the City’s annual spending limit must be approved by the City Council at the beginning of each fiscal year. The limit is calculated using the previous year’s appropriation limit ($28,875,036), multiplied by the per capita personal income percentage increase (6.44%), and multiplied again by the greater available population growth factor, which for FY 2024-25 is the County’s -0.1%.

ANALYSIS OF ISSUES:

The City is responsible for separating citywide revenues between tax and non-tax revenue and applying the formula to the cumulative appropriation limit. For FY 2025-26, the appropriation limit has been calculated to be $30,708,601. This calculation means the City cannot appropriate more than $30,708,601 of tax-based revenues in FY 2025-26.

The estimated proceeds of taxes subject to the appropriation limit for the proposed FY 2025- 26 budget is estimated to be $27,233,700, which is approximately $3.5 million less than the appropriation limit. Therefore, the City is in compliance with Article XIIIB of the California Constitution.

ALTERNATIVES:

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

1. Adopt a Resolution establishing the appropriation limit for FY 2025-26;

2. Revise and adopt a Resolution establishing the appropriation limit for FY 2025-26; or

3. Provide other direction to staff.

ADVANTAGES:

Adoption of the Resolution establishing the appropriation limit for FY 2025-26 will ensure that the City is in compliance with Article 13B of the California Constitution.

DISADVANTAGES:

There are no disadvantages identified with the recommended action.

ENVIRONMENTAL REVIEW:

Establishing the appropriation limit for FY 2025-26 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. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ADOPTING A TAX PROCEEDS

EXPENDITURE APPROPRIATION LIMIT FOR FISCAL
YEAR 2025-26
WHEREAS, Government Code sections 7900 et seq. provide for the effective and efficient implementation of Article XIIIB of the California Constitution; and WHEREAS, Government Code sections 7901 through 7914 provide that each year, the governing body of each local jurisdiction shall, by resolution adopted at a regularly scheduled meeting, establish the annual adjustment factors to be used and the tax proceeds expenditure appropriation limit; and
WHEREAS, establishing the appropriation limit for Fiscal Year 2025-26 is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Arroyo Grande as follows:

1. The recitals above are true and correct and are incorporated herein by reference, and adopted as findings by the City Council.

2. The California per capita income and the population for the County of San Luis Obispo, California are recognized as the annual adjustment factors for Fiscal Year 2025-26.

3. The appropriation limit for Fiscal Year 2025-26 is hereby set at thirty million, seven hundred eight thousand, six hundred and one dollars ($30,708,601).

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

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

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 24th day of June, 2025.

ATTACHMENT 1
RESOLUTION NO.

PAGE 2
______________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
______

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

ATTACHMENT 1

EXHIBIT A
Appropriation limit for 2024-25 28,875,036 (A)
Multiplied by the appropriation limit change factors:

Per Capita Personal Income Change: 6.44%
=
100
Population Factor - San Luis Obispo County
2024 279,568
2025 279,337 -0.1%
(231)
= =
279,337 100
Appropriation limit factor: (B x C) 1.0635 (D)
APPROPRIATION LIMIT FOR FISCAL YEAR 2025-26 (A x D) $ 30,708,601 $ 27,233,700
Amount under (over) limit 3,474,901
ESTIMATED 2025-26 PROCEEDS OF TAXES SUBJECT

TO APPROPRIATION LIMIT

1.0644
Conversion to ratio:
(231) -0.1% +100 0.99917
(C)

0.99917

CITY OF ARROYO GRANDE

CALCULATION OF APPROPRIATION LIMIT FROM TAX PROCEEDS
FOR FISCAL YEAR 2025-26
Conversion to ratio: 6.44% +100

1.0644
(B)

1 Item 9.c.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
June 10, 2025, 6:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Pro Tem Kate Secrest, Council Member Jim Guthrie, Council Member Jamie
Maraviglia, Council Member Aileen Loe
Council Members Absent: Mayor Caren Ray Russom
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Matthew Downing,
Assistant City Manager/Public Works Director
Bill Robeson, Administrative Services Director
Nicole Valentine, Interim Police Chief David
Culver, Human Resources Officer Ashley
Garcia, Community Development Director
Brian Pedrotti, FCFA Chief Scott Hallett,
Recreation Supervisor Carrie Vanbeveren,
City Engineer Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________

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

2. ROLL CALL
City Clerk Matson took roll call. Mayor Ray Russom was absent.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW

5.a Closed Session Announcements
None.

5.b Ordinances read in title only

2 Item 9.c.

Moved by Council Member Guthrie
Seconded by Council Member Maraviglia
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Recognizing June 19, 2025 as "Juneteenth" in Arroyo Grande Mayor Pro Tem Secrest presented the Honorary Proclamation recognizing June 19, 2025 as "Juneteenth" in Arroyo Grande. Juanetta Perkins, Juneteenth Paso Robles, accepted the Proclamation.

No action was taken on this item.

6.b City Manager Communications
City Manager Downing provided information regarding the Police Department Radio Encryption Project; Chief of Police recruitment through June 30, 2025; Traffic Way Bridge Replacement Project; the Buy Local Program; and the FlashVote community engagement tool.

No action was taken on this item.

7. CITY COUNCIL REPORTS
None.

Reports are made during the Second Council Meeting each month.

8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Pro Tem Secrest invited public comment. Speaking from the public was Judy Ceccetti. No further public comments were received.

City Manager Downing responded to questions from the public.

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

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

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

3 Item 9.c.

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

9.a Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of May 1 through May 15, 2025.

9.b Statement of Investment Deposits for April 2025
Received and filed the report listing investment deposits of the City of Arroyo Grande as of April 30, 2025, as required by Government Code Section 53646(b).

9.c Approval of Minutes
Approved the minutes of the Regular City Council Meeting of May 27, 2025, as submitted.

9.d Resolutions Establishing Salaries and Benefits for Management and Part-Time Employees, Approval of the Updated Citywide Combined Salary Schedule, and Job Descriptions for Newly Budgeted Positions
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE UPDATING COMPENSATION FOR DESIGNATED NON-REPRESENTED

MANAGEMENT AND EXECUTIVE EMPLOYEE CLASSIFICATIONS FOR FISCAL YEARS 2025-26 AND 2026-27";
2) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE ADOPTING COMPENSATION ADJUSTMENTS FOR PART-TIME EMPLOYEES";
3) Approved the updated Citywide Combined Salary Schedule; 4) Approved job descriptions for newly budgeted positions; and 5) Found that approval of the Resolutions are not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378).

9.e License Agreement with Papich Construction
1) Authorized the City Manager to execute a license agreement for the use of City property at 400 W. Branch for construction staging with Papich Construction Company, Inc. (“Papich”), subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Found the action exempt from CEQA under the Class 4 exemption which applies to minor public or private alterations in the condition of land.

4 Item 9.c.

9.f Amendments to Title 15 of the Arroyo Grande Municipal Code Regarding the Updated State Fire Hazard Severity Zone Maps
1) Adopted an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 15.15 TO TITLE 15 OF THE ARROYO GRANDE

MUNICIPAL CODE DESIGNATING CITY OF ARROYO GRANDE LOCAL RESPONSIBILITY AREA REFINED FIRE HAZARD SEVERITY ZONES"; and
2) Found that the Ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2); 15061(b)(3)).

10. PUBLIC HEARINGS

10.a Fiscal Year 2025-27 Biennial Budget
City Manager Downing introduced the Item and Administrative Services Director Valentine presented the Item.

Mayor Pro Tem Secrest opened the public hearing. Upon hearing no public comments, Mayor Pro Tem Secrest closed the public hearing.

Council discussion ensued regarding the amount of budget allocated to Capital Improvement Projects, looking strategically at the operating budget in future budget cycles as it relates to the City's organizational aspirations, securing Measure E-24 sales tax funds, and the City's extensive budget process and public hearings.

Moved by Council Member Guthrie
Seconded by Mayor Pro Tem Secrest
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2025-27 BUDGET AND MAKING APPROPRIATIONS FOR THE AMOUNT BUDGETED"; and
2) Determine that adopting of the Budget 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.) Individual projects within the Budget may be subject to CEQA and environmental review will be conducted at the appropriate time during implementation of those projects.

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

11. BUSINESS ITEMS

5 Item 9.c.

11.a Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products Interim Police Chief Culver presented the Item and responded to questions from Council.

Mayor Pro Tem Secrest invited public comment. Speaking from the public were Alexandria Davis, Amy Gilman, and Julia Alber. No further public comments were received.

City Manager Downing and Interim Police Chief Culver responded to questions from the public.

City Manager Downing and City Attorney Rosen responded to questions from Council.

Council discussion ensued regarding future further amendments and support of staff's recommendation. Interim Police Chief Culver responded to questions from Council.

Moved by Council Member Guthrie
Seconded by Council Member Loe
1) Introduce an Ordinance amending Section 8.36.020 and Section 8.36.050 of Title 8 of the Arroyo Grande Municipal Code relating to the sale of electronic tobacco products in Arroyo Grande; and
2) Find that the proposed ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable, indirect, physical change in the environment (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

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

12. COUNCIL COMMUNICATIONS
Mayor Pro Tem Secrest commented on the Festival Mosaic music festival event.

13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Pro Tem Secrest adjourned the meeting at 6:55 p.m.
_________________________
Caren Ray Russom, Mayor
_________________________
Jessica Matson, City Clerk

Item 9.d.

MEMORANDUM
TO: City Council
FROM: David Culver, Interim Chief of Police
BY: Jason Castillo, Administrative Sergeant
SUBJECT: Amendment to Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services
DATE: June 24, 2025
RECOMMENDATION:
1) Approve the amended School Resource Officer Memorandum of Understanding authorizing the City Manager or designee to execute the amendment, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The cost of the School Resource Officer (SRO) position is approximately $163,800 for Fiscal Year (FY) 2025-26. This Memorandum of Understanding (MOU) shares the cost of the salary and benefits associated with the officer between the City and Lucia Mar Unified School District (LMUSD). The City will receive fifty percent (50%) of the cost from LMUSD; totaling $81,900. These funds were included as estimated revenues in the City’s FY 2025- 26 Budget.

BACKGROUND:

The City and the LMUSD have maintained a long-standing partnership to provide an SRO assigned to the city's local schools, supporting school safety and law enforcement services. At the request of LMUSD and in alignment with best practices for accountability and adaptability, both parties believe that revising the contract term with an option for annual review and renewal will enhance operational flexibility and allow for any necessary adjustments to policy or financial expenditure.

Item 9.d.

City Council
Amendment to Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services
June 24, 2025

ANALYSIS OF ISSUES:

The Revised MOU retains all terms and obligations regarding the SRO’s duties, funding allocation, supervision, and reporting requirements. The primary change involves the duration of the contract, clarifying a 1-year term, effective July 1, 2025, through June 30, 2026.

The LMUSD has requested that SRO services be provided for the 2025-2026 school year.

The term of the agreement begins July 1, 2025, and ends June 30, 2026. This agreement may be renewed annually, for four additional 1-year terms, upon mutual written consent of both parties. The amended MOU also makes minor tweaks to how invoicing for SRO services will be paid by the LMUSD to the City.

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

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

The MOU has been drafted so that AGPD and LMUSD share the costs of the SRO, including overtime pay. The cost of the MOU to LMUSD will be $81,900, except that LMUSD will pay for overtime work at rates which are included in Exhibit A attached to the MOU (Attachment 1). AGPD, specifically the Chief of Police, is responsible for hiring the SRO, but may solicit input from LMUSD to assist in their selection. Further, AGPD will collaborate with LMUSD in the implementation of the SRO program. For example, the SRO will coordinate with the school administration in order to provide lessons regarding police services and general citizenship. The SRO will primarily, however, respond to incidents or conduct investigations regarding calls to service.

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

Item 9.d.

City Council
Amendment to Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services
June 24, 2025

ALTERNATIVES:

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

1. Approve the amended MOU to adopt a 1-year contract, and share 50% of the cost SRO services for FY 2025-2026 subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney;

2. Do not adopt the amended SRO MOU; or

3. Provide other direction to staff.

ADVANTAGES:

The 1-year contract amendment for the MOU will facilitate the yearly budget planning and operational planning review for both the AGPD and LMUSD.

DISADVANTAGES:

Non-approval will result in the AGPD being unable to dedicate an officer in the City school on a full-time basis.

ENVIRONMENTAL REVIEW:

Approving the agreement is not a project subject to CEQA because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (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. Amendment to School Resource Officer MOU

2. Current School Resource Officer MOU

ATTACHMENT 1

AMENDMENT TO MEMORANDUM OF UNDERSTANDING

BETWEEN THE ARROYO GRANDE POLICE DEPARTMENT AND

THE LUCIA MAR UNIFIED SCHOOL DISTRICT FOR

SCHOOL RESOURCE OFFICER SERVICES

1. PARTIES AND DATE.

This First Amendment to the Memorandum of Understanding for School Resource Officer Services is made and entered into this 10th day of June, 2025, by and between the City of Arroyo Grande (“City”), on behalf of the Arroyo Grande Police Department ("AGPD"), and the Lucia Mar Unified School District ("School District"). The City and School District are sometimes individually referred to herein as “Party” and collectively as “Parties.” The City and AGPD are sometimes collectively referred to as “City” in this Agreement.

2. RECITALS.

2.1 Agreement. The Parties entered into a memorandum of understanding for the City to provide School Resource Officer Services to the School District ( the “Agreement”) effective on July 1, 2024.

2.2. Term. The Parties desire to clarify that the term of the Agreement is intended to run for one year, with one year extensions if approved by each Party.

2.2 First Amendment. The Parties now desire to amend the Agreement pursuant to Section Q.1 of the Agreement by modifying the term of the Agreement and the times when the City will invoice the School District for the School District’s share of the program costs.

3. TERMS.

Now therefore, City and School District agree as follows that the Agreement be, and hereby is, amended as follows:

3.1 Term. The term, as provided in Section O of the Agreement, is hereby amended to extend the term for one year and to read as follows:

The term of this Memorandum of Understanding shall continue until July 1, 2026.The Agreement may be extended for four additional one year terms, upon mutual written consent of both parties.

3.2 Invoicing. The third paragraph of Section L is hereby amended such that invoicing occurs on the months of December and May and to read as follows:

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

3.3 Remaining Provisions of the Agreement. Except as otherwise specifically set forth in this First Amendment, all of the remaining provisions of the Agreement shall remain in full

65501.00012\43820729.1
force and effect.

IN WITNESS WHEREOF, each of the Parties has caused this First Amendment to be executed on the day and year first above written.

CITY OF ARROYO GRANDE LUCIA MAR UNIFIED SCHOOL DISTRICT By:

Its:

Printed Name:

Approved By:

Matthew Downing
City Manager
Approved as to Form:
_____________________________________
Best Best & Krieger LLP
Isaac Rosen, City Attorney
Attested By:

Jessica Matson, City Clerk

SCHOOL RESOURCE OFFICER

MEMORANDUM OF UNDERSTANDING
A. Mission Statement
The community of Arroyo Grande, the Lucia Mar Unified School District, and the Arroyo Grande Police Department are significantly impacted by demands to address incidents and situations directly or indirectly related to juveniles and the schools. The problems of juvenile delinquency, alcoholic beverage and illegal substance abuse, gang involvement, and other youth- related problems that negatively affect the community and the schools can be best addressed in a pro- active, interactive, and preventive manner. Effective education requires a safe and orderly environment in which learning can occur. Consequently, the Arroyo Grande Police Department and the Lucia Mar Unified School District jointly propose to implement the School Resource Officer( SRO) program within the Lucia Mar Unified School District for schools located within the City of Arroyo Grande. The mission of the SRO program shall be to provide appropriate law enforcement resources and a school- based approach to the development of a positive relationship among students, staff and the police, the maintenance of a safe learning environment and the prevention of juvenile delinquency, alcoholic beverage and illegal substance abuse, and gang involvement by our community' s youth.

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

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

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

Under the terms of this Memorandum of Understanding, the Lucia Mar Unified School District and the Arroyo Grande Police Department agree that the duties, responsibilities and physical presence of the SRO are not limited to the Arroyo Grande High School but include all schools in the Lucia Mar Unified School District within the City of Arroyo Grande.
65501. 00012\ 41327612. 1
ATTACHMENT 2

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

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

C. Description of General Duties

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

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

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

4. The SRO will be considered an active member of the administrative team in his/ her assigned school( s).
65501. 00012\ 41327612. 1

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

6. The school buildings, grounds, and the adjacent neighborhoods and streets will be the equivalent of the SRO' s patrol area and he/she will assume primary responsibility for handling calls for police service and coordinating the response of other police or emergency resources to the school. All criminal activity that comes to the attention of the school staff shall be reported immediately to the Police Department. In an emergency situation, the school shall call 911 and should also notify the SRO as soon as reasonably possible. In a non- emergency situation, the school should notify the SRO or call the pen- emergency police Department number if the SRO is not available.

The SRO may delay his/ her Immediate response to incidents that are not of an emergency nature for action upon his/ her return to duty.

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

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

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

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

11. The SRO will assist with training for the school administration in law enforcement- related matters. Information about crime trends and changes in criminal law relevant to schools shall be disseminated to the school administration to assist in effectively establishing and maintaining safe school environments. 65501. 00012\ 41327612. 1

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

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

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

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

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

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

18. The SRO shall utilize the appropriate Police Department mechanism, e. g. the CADS or crime and incident reports, to record his/ her activities in a timely manner. That record shall be made available to school administration upon request. 65501. 00012\ 41327612. 1

19. Other duties and responsibilities of the SRO include:
a) Proper disposal of illegal substances recovered by the school and not needed for criminal prosecution.
b) Maintaining familiarity with the Lucia Mar Unified School District Student Rules and Regulations.
c) Attending and providing testimony at school disciplinary hearings upon request. d) Participation in other youth-related community activities as assigned by the Chief of Police or his/ her designee.

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

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

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

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

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

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

5. Access to and encouragement of classroom participation.

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

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

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

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

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

F. Desired Outcome
65501. 00012\ 41327612. 1

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

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

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

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

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

G. Information Sharing
Consistent with the basic tenants of the relationship between the school administration and the SRO described in this Memorandum of Understanding, open communication is essential to ensure program effectiveness. The SRO should exchange information with the school administration regarding students' involvement in criminal activity in and around the school. This shall be limited to information that directly relates to and• contributes to the safety of the school environment. The SRO shall not make any official document, police report, or record available to the school administration or its staff that is not legally permissible nor shall the school administration or its staff make any official document, report or record available to the SRO that is not likewise legally permissible.

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

Evaluation of the SRO shall be conducted as a function of supervision consistent with• the Arroyo Grande Police Department' s policies and procedures. The Superintendent of the 65501 00012\ 41327612. 1

Lucia Mar Unified School District, or his/ her designee, shall have the opportunity to submit supplemental evaluations of the SRO related to the fulfillment of position responsibilities to the SRO supervisor. The SRO supervisor, as a part of the SRO' s evaluation, shall consider any such supplemental evaluation.

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

The SRO as a sworn police officer shall retain decision- making authority related to law enforcement issues, including, but not limited to, the use of body worn camera.

Decision- making authority related to school policy, procedures, and practices shall be retained by the school administration and staff. Inconsistencies and/ or conflicts between Police Department policy and Lucia Mar Unified School District policy shall be resolved through mutual cooperation and alterations or amendments to this Memorandum of Understanding.

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

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

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

L. Funding Plan
65501. 00012\ 41327612. 1

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

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

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

The Arroyo Grande Police Department shall be responsible for the remaining fifty percent 50%) of those same costs.

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

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

M. Termination
This Memorandum of Understanding may be terminated without cause either by the Arroyo Grande Police Department or the Lucia Mar Unified School District upon ninety 90) days written notice. Upon termination, any funds provided the Lucia Mar Unified School District shall be pro- rated and returned as appropriate to the Lucia Mar Unified School District.
65501. 00012\ 41327612. 1

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

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

Arroyo Grande Police Department Lucia Mar Unified School District Representative Representative
Name: i{c-' l fUld MatirliLneE, Name: OJC-4 Etta" e`er U Title lQ O PO l. Q• Title: e. S 4,, uc1N-e,SS
Date: 202 Date: ( 0/ n-j
Signature: A Signature: '
LMUSD Board Approved:
v
I4
lo/ l / an 4
65501. 00012\ 41327612. 1

N. Indemnity

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

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

O. Term
The term of this Memorandum of Understanding shall be for five years from the effective date, which shall be July 1, 2024. The Agreement may be extended for up to four additional two-year terms, upon mutual written consent of both parties.

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

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

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

3. Waiver. Any waiver by the Arroyo Grande Police Department of any breach of any one or more of the terms of this Memorandum of Understanding shall not 65501. 00012\ 41327612. 1

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

Overtime will be calculated as follows:

Position Annual Rate Hourly Rate Overtime Rate
School Resource Officer 163, 800 78. 75 118. 13

Item 9.e.

MEMORANDUM
TO: City Council
FROM: David Culver, Interim Chief of Police
BY: Jason Castillo, Administrative Sergeant
SUBJECT: Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and

8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products
DATE: June 24, 2025
RECOMMENDATION:
1) Adopt an Ordinance amending Section 8.36.020 and Section 8.36.050 of Title 8 of the Arroyo Grande Municipal Code relating to the sale of electronic tobacco products in Arroyo Grande; and
2) Find that the proposed ordinance is exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable, indirect, physical change in the environment (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No financial impact is projected.

BACKGROUND:

On November 26, 20191, the City Council adopted Ordinance No. 702, prohibiting all retail sales of electronic cigarette products and paraphernalia, known as “vape” products, that have not received premarket review by the Federal Drug Administration ("FDA"). The Council also adopted Ordinance No. 701 on August 27, 20192, prohibiting businesses from selling tobacco products and paraphernalia to persons under twenty-one. The Ordinances became effective thirty (30) days following adoption.

Pursuant to Government Code sections 36934 and 36937, ordinances are “introduced” by first reading at a City Council meeting, “passed” (i.e., approved) at a later City Council meeting by conducting a second reading, and then take effect 30 days after passage. At

1 https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9180?fileID=15539 2 https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/8889?fileID=15432

Item 9.e.

City Council
Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products
June 24, 2025

a public hearing on June 10, 20253, the City Council introduced the Ordinance as proposed. The Ordinance amendments are now ready for adoption. The Ordinance amendments will become effective thirty (30) days after adoption.

ANALYSIS OF ISSUES:

Sale of FDA Approved Products Only
The FDA requires all new tobacco products, including vapes, to undergo a process called Premarket Tobacco Product Application (PMTA) before they can be legally sold in the United States. This process is intended to determine whether a product is appropriate for the protection of public health. However, a PMTA is not an approval or endorsement of the product’s safety. Instead, it is a regulatory hurdle that allows the FDA to evaluate whether a product should be allowed on the market under the current federal standards, which are often more lenient than what many local communities consider appropriate for the public health. Many vape products that appear on store shelves today are either still under review, have not received marketing authorization, or are being sold in violation of federal law. The PMTA process is backlogged, and enforcement is inconsistent. This creates a loophole where unapproved and potentially harmful vape products continue to be widely accessible, including to minors. Local regulation is a critical enforcement tool, because the long-term safety of these products remains unclear.

Arroyo Grande Municipal Code (AGMC) Subsection 8.36.050(b) currently allows vape products to be sold if the following criteria are met:
 it is a new tobacco product;
 it requires a premarket review order under 21 U.S.C. 387j, as may be amended from time to time; and
 it does not have a premarket review order under 21 U.S.C. 387j(c)(1)(A)(i), as may be amended from time to time.

The removal of the above language will prevent any sale of vape or other electronic tobacco products or paraphernalia within the City limits. Staff believes completely prohibiting the sale is necessary because of the inconsistent enforcement of safety standards for these devices and products. By adopting the proposed ordinance, Arroyo Grande can take proactive steps where federal regulations have not been able to regulate effectively, and better protect our residents' health and safety, especially minors. The City’s proposed ordinance retains an existing carve-out for FDA-endorsed tobacco cessation products, or when used for other medical purposes.

Sales to Minors
California Senate Bill 1230 (SB 1230), enacted in 2024, repealed the exemption that previously allowed active-duty military personnel aged 18 to 20 to purchase tobacco

3 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14873

Item 9.e.

City Council
Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products
June 24, 2025

products. This change aligns California law with the federal Tobacco 21 law, which has set the minimum legal age to buy tobacco at 21, without exception for military members.

Prior to SB 1230, California law permitted active-duty military members aged 18–20 to purchase tobacco. The federal Tobacco 21 law, effective since 2019, applies to all individuals regardless of military status. SB 1230 ensures consistency between state and federal laws, eliminating confusion for retailers and enforcement agencies.

AGMC Section 8.36.020 currently allows active duty military personnel aged 18-20 to purchase tobacco products. To comply with state law and protect the health of our community's youth, it is recommended that the Ordinance be amended to remove the exemption allowing military personnel aged 18–20 to purchase tobacco products. This change will simplify enforcement within the City.

ALTERNATIVES:

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

1. Adopt the Ordinance as proposed;

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

3. Provide other direction to staff.

ADVANTAGES:

Revisions to the AGMC will align the City with State and federal law, protect the public health, including the health of minors, and provide clarity for law enforcement.

DISADVANTAGES:

A prohibition on the retail sale of electronic cigarettes and vaping products could lead to a referendum to overturn some of the City’s local regulations. However, the City would join a number of other agencies that have taken similar action. Additionally, the Arroyo Grande Police Department has been in touch with the California Department of Justice regarding its plan to update its existing ordinance.

ENVIRONMENTAL REVIEW:

The California Environmental Quality Act (“CEQA”) does not apply to the recommended action in this report. This proposed Ordinance is not a “project” subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in a direct or indirect physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.) The sole effect of the proposed Ordinance is to amend the Arroyo Grande Municipal Code to limit distribution of electronic cigarettes and vaping products and protect the public health.

Item 9.e.

City Council
Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products
June 24, 2025

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. The public hearing on this item was noticed in accordance with Government Code Section 50022.3.

ATTACHMENTS:

1. Ordinance

ATTACHMENT 1
-1-
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, AMENDING SECTIONS 8.36.020 AND 8.36.050 OF TITLE 8

OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO THE SALE OF

TOBACCO PRODUCTS
WHEREAS, based upon its concerns about the health impacts caused by the use of tobacco products, the City Council of the City of Arroyo Grande has previously adopted Arroyo Grande Municipal Code Chapter 8.36 – Tobacco Products of Title 8; and WHEREAS, the City of Arroyo Grande is committed to protecting and promoting the public health, safety, and welfare of its residents, particularly its youth; and WHEREAS, the use of tobacco products, including electronic cigarettes and vaping products, presents significant and well-documented health risks, including addiction, respiratory diseases, and other adverse health outcomes; and WHEREAS, there has been a dramatic increase in the use of electronic cigarettes and vaping products among youth, both nationally and locally, posing a serious public health concern; and
WHEREAS, the availability of flavored electronic cigarettes and vaping products has been identified as a primary factor in attracting minors to initiate and continue the use of these harmful products; and
WHEREAS, the City Council finds that prohibiting the retail sale and distribution of electronic cigarettes and vaping products, and strengthening age verification requirements for all tobacco product sales, is a necessary and appropriate measure to curb youth access to and consumption of these products; and WHEREAS, the minimum legal age for the sale of tobacco products, including electronic smoking devices, is twenty-one (21) years of age, and the City Council deems it essential to align its local laws to reflect and reinforce this state standard; and WHEREAS, the City Council finds that these amendments are consistent with the City's community needs and serves a compelling public interest by reducing the prevalence of tobacco and vaping product use among young people and preventing the associated health consequences; and
WHEREAS, the City of Arroyo Grande has the authority under its police powers to enact ordinances that protect the health, safety, and welfare of its residents; WHEREAS, on June 10, 2025, the City Council held a duly noticed public hearing and introduced the Ordinance;
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

ORDINANCE NO.

PAGE 2

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

SECTION 1. Recitals. The recitals above are true and correct and are incorporated herein by reference and adopted as findings by the City Council.

SECTION 2. CEQA. The California Environmental Quality Act (“CEQA”) does not apply to the recommended action. This proposed Ordinance is not a “project” subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in a direct or indirect physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.) The sole effect of the proposed Ordinance is to amend the Arroyo Grande Municipal Code to limit distribution of electronic cigarettes and vaping products and protect the public health.

SECTION 3. Amendment. Chapter 8.36.020, Title 8 of the Arroyo Grande Municipal Code is hereby amended to read in its entirety as follows:

8.36.020 Sales to minors.

No person, business, tobacco retailer, or owner, manager or operator of any establishment subject to this chapter shall sell, offer to sell or permit to be sold any tobacco product as defined by Business and Professions Code Section 22950.5 as such section may be amended from time to time, to an individual without requesting and examining identification establishing the purchaser's age as twenty-one (21) years of age or older.

SECTION 4. Amendment. Chapter 8.36.050, Title 8 of the Arroyo Grande Municipal Code is hereby amended to read in its entirety as follows:

8.36.050 Sale and distribution of electronic cigarettes and vaping products.

A. Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:
"Distribute" or "distribution" means the transfer, by any person other than a common carrier, of an electronic cigarette or vaping project at any point from the place of manufacture or thereafter to the person who sells the electronic cigarette or vaping product to an individual for personal consumption, including, but not limited to, such transfers by licensed tobacco retailers, excluding online transactions. "Electronic cigarette" and "vaping product" shall mean: 1) any product intended for human consumption by inhalation regardless of nicotine content, whether for onetime use or reusable, that relies on vaporization or aerosolization, including, but not limited to, electronic cigarettes, electronic cigars, electronic cigarillos, electronic pipes, electronic vaping product delivery pens, hookah pens, and any other similar devices that rely on vaporization or aerosolization; and 2) any component, part, or accessory of a product or device defined in 1 above, including flavored vape juices and liquids used in such devices, even if sold separately. "Electronic cigarette" and

ORDINANCE NO.

PAGE 3
"vaping product" does not include any product that has been approved by the federal Food and Drug Administration either as a tobacco use cessation product or for other medical purposes and which is being marketed and sold or prescribed solely for the approved purpose.
"New tobacco product" shall have the meaning set forth in 21 U.S.C. § 387j(a)(1), as may be amended from time to time.
"Sell," "sale," and "to sell" mean any transaction where, for any consideration, ownership of an electronic cigarette or vaping product is transferred from one person to another, including, but not limited to, any transfer of title or possession for consideration, exchange, or barter, in any manner or by any means, including, but not limited to, such transactions by licensed tobacco retailers, excluding online transactions.

In addition, "person" and "tobacco retailer" shall have the meanings defined in Arroyo Grande Municipal Code Section 8.38.020.

B. Sale of electronic cigarettes and vaping products prohibited. No person shall sell or distribute an electronic cigarette or vaping product in retail establishments, excluding online, including all non-flavored and flavored vaping products, including mint and menthol, to a person in the City of Arroyo Grande.

C. Violations. Persons violating any provisions of this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not to exceed one thousand ($1,000) dollars or by imprisonment in the county jail for a period not to exceed six months or by both such fine and imprisonment. Any violations of these provisions shall constitute a separate offense for each and every day during which such violation is committed or continued. In addition to any other penalty authorized by law, violations by licensed tobacco retailers shall also be subject to suspension or revocation of their license in accordance with the provisions of AGMC Section 8.38.110.

SECTION 5. Savings Clause. Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 6. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 7. Effective Date. This Ordinance shall take effect and be in full force

ORDINANCE NO.

PAGE 4
and operation thirty (30) days after its final passage and adoption.

SECTION 8. City Clerk’s Certification. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen (15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and post a certified copy of the text of this Ordinance in the Office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and, within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.

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

AYES:

NOES:

ABSENT:
the foregoing Ordinance was adopted this day of , 2025

ORDINANCE NO.

PAGE 5
_________________________________________

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

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 9.e. – June 24, 2025 City Council Meeting
Amendments to Arroyo Grande Municipal Code Sections 8.36.020 and 8.36.050 Regarding Sales to Minors and Sales and Distribution of Electronic Tobacco Products
DATE: June 24, 2025
Attached is public comment received prior to 2 p.m. for the above referenced item. cc: City Manager
Assistant City Manager/Public Works Director
Interim Police Chief
City Attorney
City Website and Public Review Binder
Enc

From: Amir Hassan
To: City Council; Matt Downing; Jessica Matson; Bill Robeson Subject: Opposition Letter Vape Ban
Date: Monday, June 23, 2025 3:17:40 PM
Attachments: image002[22].png
Arroyo Grande, CA Oppo Letter.pdf
IRONSCALES couldn't recognize this email as this is the first time you received an email from this sender [email protected]
Hello Arroyo Grande City Council,
I hope this email and attached letter finds you well. I am writing to you on behalf of my company, H&S Energy, and on behalf of CFCA, NATO, and 7-Eleven expressing our opposition to the action the city is taking on banning previously approved vape products.

Please see attached letter and if there is room for collaboration on this, please do not hesitate to reach out.

Thank you,
Amir Hassan
President of Operations and Retail
+1 714 390 0330 | +1 714 761 5426 ext.280
[email protected] | www.hnsenergygroup.com
2860 N. Santiago Blvd. Orange, CA 92867
This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act [18 USC 2510] and is intended to be received and read only by certain individuals. It may contain information that is attorney-client privileged or protected from disclosure by law. Receipt by anyone other than the intended recipient does not constitute a loss of the confidential or privileged nature of the communication. Any review or distribution by others is strictly prohibited. If it has been misdirected, or if you suspect you have received this in error, please notify me by replying and then delete both the message and reply. Thank you. Consider the environment before printing.

Dear Arroyo Grande City Councilors,
We are writing to you today to express our concerns and opposition to your proposed total vapor product ban.

In 2019, the city council adopted an ordinance that prohibited the sale of all non-FDA authorized ecigarette (vaping) products in an eHort to curb the then height of the national youth vaping epidemic.

In 2024, the State of California passed a law enhancing the enforcement of the 2022 flavored product ban. In that enhancement bill, AB 3218, the state is tasked with creating a list of allowable “un-flavored” products (UTL – “Unflavored Tobacco List”) that can be sold across the state. To better avoid enforcement confusion, we ask that the city postpone consideration of the total vapor product ban until the state publishes the UTL. That list will clarify what products local law enforcement should target instead of relying on a blanket ban.

Without such clarity, continued enforcement issues may rise, leading to prohibitionist policy discussions such as this. We know bans do not fully work as intended – some businesses will refuse to comply, consumers will travel elsewhere to purchase products, and unfortunately youth will use their social sources to obtain tobacco. The city is better served continuing its education eHorts around the harms of tobacco and penalizing irresponsible businesses who actively flout federal, state, and local laws regarding underage sales and more.

In terms of underage sales, according to the FDA’s compliance website, in Arroyo Grande, none of the detailed inspections in the last 10 years cited a single retailer for selling tobacco to youth. As local retailers who were designated as essential businesses during the COVID-19 pandemic, we encourage focusing enforcement eHorts on non-compliant operators rather than applying broad restrictions to retailers with proven compliance records. The continued focus on responsible retailers overlooks the broader factors contributing to youth access - namely, the illicit market.

Arroyo Grande’s existing law allows for the products that have met the FDA’s standard of “appropriate for the protection of public health” to be sold (except menthol). In short, that means those authorized products are helpful tools that not only wean cigarette smokers oH combustible tobacco but also have minimal youth appeal. The FDA does have an active list of authorized vapor products, which should allay concerns about a “guessing game” on what products can be sold in the city. That list is linked and attached on the following page.

If the city removes this commonsense regulation, then Arroyo Grande is taking a step back public health. As mentioned in 2019 during the initial discussions on banning vapes, the city council should consider the “rest of the residents” and a potential disservice to them if you force them to keep smoking cigarettes.

Please consider postponing a full ban and maintain the city’s current law allowing the sale of federally authorized products.

Sincerely,

Amir Hassan, President of Operations and Retail
H&S Energy Products, LLC
Alessandra Magnasco, Director Governmental AHairs and Regulatory California Fuels and Convenience Alliance
Sukhi Sandhu, Chairman
National Coalition of Associations of 7-Eleven Franchisees David Spross, Executive Director
National Association of Tobacco Outlets
Steve’s Grocery Distributing
FDA Authorized E-Cigarette Products

Item 9.f.

MEMORANDUM
TO: City Council
FROM: David Culver, Interim Chief of Police
BY: Zak Ayala, Police Commander
SUBJECT: Contract with the County of San Luis Obispo for Animal Care and Control Services
DATE: June 24, 2025
RECOMMENDATION:
1) Adopt a Resolution approving and authorizing the City Manager to execute a contract for Animal Care and Services (“Contract”), subject to any minor, technical, or nonsubstantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Find that adopting the Resolution and Contract approval are exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The new Contract will provide for contract animal services effective July 1, 2025, or fifteen (15) days following the county's signature, whichever is later, through June 30, 2030. The proposed first-year cost for FY 2025-26 is $178,541. Annual costs will be adjusted each year based on the service fee methodology identified in Exhibit B of the attached proposed Contract.

BACKGROUND:

The San Luis Obispo County Division of Animal Services has provided the City of Arroyo Grande with animal care and control functions, including enforcement of ordinances and State codes, for over thirty years. The City Council approved the most recent contract for services between the City and County on November 22, 2022, which expires on June 30, 2025.

The County of San Luis Obispo's animal management regulations are covered in San Luis Obispo County Title 9. The City adopted Title 9 by reference to provide a

Item 9.f.

City Council
Contract with the County of San Luis Obispo for Animal Care and Control Services June 24, 2025

standardized set of county-wide animal control regulations that can be enforced more easily and create continuity throughout the county.

In 2009, in response to concerns from several municipalities over rising costs for animal services, the County Health Agency and Administrative staff, working with representatives of cities, conducted an animal services study. The study identified specific animal services provided to the cities, data collection of elements, and an allocation and fee-setting methodology to better understand the rate-setting process. This study resulted in improved services and a reduction in costs for the City.

ANALYSIS OF ISSUES:

The Service-Based Methodology model adopted in 2010 allocates the cost and revenues to the cities (and to the County for unincorporated areas) based on each city’s actual use of services and revenue generated. Usage is measured by allocating costs from four key facets of Animal Services operations: Field Service, Licensing, Shelter Operations, and Education Services.

This method provides a more direct and measurable relationship between the actual amount of service being provided to a city, combined with the actual revenue generated by a municipality through animal licenses and other fees, and the costs charged to the city for that service. Cities with a lower service rate and/or that generate more off-setting revenue pay lower contract fees than cities with high usage rates and/or create less offsetting revenue. The City benefits under this methodology by having a service population that is highly responsible for pet ownership and licensing.

The proposed Contract provides the provision of Animal Care and Control Services to the City for the next five years, through June 30, 2030. Services include, but are not limited to:
 Sheltering and medical care of stray, owner-surrendered, confiscated, and quarantined household animals;
 Reunification of sheltered animals with owners or adoption into new homes;  Receipt and publication of lost and found animal reports;  Responses to calls for service from the Police Department or residents for stray or loose animals, dangerous or vicious animals, bite and neglect/abuse investigations, potential rabies exposure investigations and quarantines, pick up of deceased animals;
 Regulation of breeders and sales of domestic animals;  Animal-related nuisance investigations;
 Enforcement of State and local animal-related laws.

ALTERNATIVES:

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

1. Approve staff’s recommendation to approve the Contract with the County of San Luis Obispo;

Item 9.f.

City Council
Contract with the County of San Luis Obispo for Animal Care and Control Services June 24, 2025

2. Do not approve staff’s recommendation and direct staff to seek alternatives; or

3. Provide other direction to staff.

ADVANTAGES:

Approval of the Contract will enable the County to continue providing animal care and control services within the City of Arroyo Grande at a cost that reflects the City’s proportionate calls for service, sheltering, licensing, and education needs.

DISADVANTAGES:

No disadvantages have been identified.

ENVIRONMENTAL REVIEW:

Adopting the Resolution and Contract approval are exempt from the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (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. Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE APPROVING AND AUTHORIZING

THE CITY MANAGER TO EXECUTE THE CONTRACT

FOR ANIMAL CARE AND SERVICES IN

SUBSTANTIALLY FINAL FORM
WHEREAS, the San Luis Obispo County Division of Animal Services has provided the City with animal care and control functions, including enforcement of ordinances and State codes, for over thirty years; and
WHEREAS, the City Council approved a contract for services between the City and County of San Luis Obispo on November 22, 2022 and that contract expires on June 30, 2025; and
WHEREAS, the new Contract provides the provision of Animal Care and Control Services to the City for the next five years, through June 30, 2030; and WHEREAS, contracted services will include, but are not limited to: sheltering and medical care of stray, owner-surrendered, confiscated, and quarantined household animals; reunification of sheltered animals with owners or adoption into new homes; receipt and publication of lost and found animal reports; responses to calls for service from the Police Department or residents for stray or loose animals, dangerous or vicious animals, bite and neglect/abuse investigations, potential rabies exposure investigations and quarantines, pick up of deceased animals; regulation of breeders and sales of domestic animals; animal-related nuisance investigations; enforcement of State and local animal-related laws; and
WHEREAS, approving the Contract with the County of San Luis Obispo County relates to organizational or administrative activities that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5); and
WHEREAS, the City will continue to incorporate the funding for Animal Care and Services in the operating budget, Exhibit “A” provides a review of the compensation by fiscal year.

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

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

2. The City Manager is authorized to execute the accompanying Contract (Exhibit A) with the County of San Luis Obispo to provide animal care and services, for a period of five years, in substantially final form, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with

RESOLUTION NO.

PAGE 2
the City Attorney.

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 24th day of June, 2025.

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

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
THIS CONTRACT, entered into by and between the County of San Luis Obispo, a public entity in the State of California, (“County”) and, the City of Arroyo Grande, an incorporated city in the State of California, (“City”).

RECITALS
WHEREAS, County has established the Division of Animal Services to provide animal care and control functions including the enforcement of the ordinances of San Luis Obispo County Code Title 9 and of California state codes pertaining to the care, keeping, and management of animals; and
WHEREAS, County through Animal Services, maintains and operates an animal shelter and a humane education program; and
WHEREAS, City is desirous of contracting with County for the provision of such services;
NOW THEREFORE, in consideration of the covenants, conditions agreements and stipulations set fourth herein, the parties hereby agree that to the following terms and conditions.

TERMS AND CONDITIONS

1. Exhibits. The contract consists of the terms and conditions as set forth in the following exhibits:
a. Exhibit A – Scope of Services
b. Exhibit B – Compensation
c. Exhibit C – Duration of Contract
d. Exhibit D – General Conditions

2. Notices. Notices required in this contract shall be provided to:

COUNTY: CITY:

Eric Anderson, DVM Matthew Downing
Animal Services Manager Arroyo Grande CIty Manager
865 Oklahoma Ave. 300 E. Branch Street
San Luis Obispo, CA 93405 Arroyo Grande, CA 93420
Exhibit A

IN WITNESS WHEREOF, County and Contractor have executed this Contract on the day and year set forth below.

COUNTY OF SAN LUIS OBISPO CITY OF ARROYO GRANDE
By: By:

Chairperson of the Board of
Supervisors
Matthew Downing
Arroyo Grande City Manager
Date: Date:

ATTEST:

MATT PONTES
Ex-Officio Clerk of the Board of
Supervisors
By: ________________________________________
Deputy Clerk

APPROVED AS TO FORM AND LEGAL
EFFECT:

JON ANSOLABEHERE
County Counsel
Deputy County Counsel
Dated: June 18, 2025

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT A – SCOPTE OF SERVICES
1) County Obligations. The County shall perform the following duties:
a) Shelter Services
i) Maintain, or cause to be maintained, an animal shelter whereat stray, owner surrendered, confiscated, quarantined and custodially impounded household pets are received and provided with appropriate care, housing, and shelter services in accordance with state regulations, local ordinances, and policies governing the humane treatment of such animals.
ii) Provide services allowing sheltered animals to be returned to their owners, adopted into new homes, or to be humanely euthanized.
iii) Provide for the receipt and publication of lost and found animal reports. iv) Provide services for the humane euthanasia of household pets and for the disposal of their remains.
b) Field Services
i) Receive and respond to public calls for service related to alleged violations of local or state codes pertaining to the care, keeping, treatment, and management of animals.
ii) Provide for the response to any of the following circumstances 24 hours a day, seven days a week:
(1) Domestic animals posing an active and present threat to public safety (2) Domestic animals which are severely injured, sick, or in eminent risk and whose owner is unknown or unavailable.
(3) Domestic or wild animals demonstrating signs of possible rabies infection. (4) Calls for assistance from law enforcement or emergency response personnel.
(5) Reported animal bites where the animal remains in the area unconfined and whose owner is unknown or unavailable.
(6) Loose livestock roaming on roadways or other public areas. iii) Provide for the response to any of the following during Animal Services' normal business hours:

(1) Pick-up and impoundment of unlimited numbers of stray confined domestic animals.
(2) Pick-up and disposal of unlimited numbers of dead domestic animals from roadways, parks, and other public areas.
(3) Pick up and transfer to shelter of owned animals for surrender or euthanasia.
(4) Pick up of dead owned animals for disposal.
iv) Provide for the necessary medical treatment and emergency care for domestic animals picked up by Animal Services personnel and for those domestic animals presented directly to veterinarians by private citizens and emergency response personnel.
v) Provide for the receipt, processing and investigation of animal bite reports as well as the subsequent quarantine of animals in accordance with state codes pertaining to rabies control.
vi) In the event that an animal responsible for causing serious bodily injury (as defined by Penal Code 243(f)(4)) or death to a person dies in the custody of, or is euthanized by, Animal Services, County shall preserve the bodily remains of that animal until such time as City has been consulted and approves of their disposal.

Nothing in this requirement shall be interpreted to prevent Animal Services from collecting and processing any tissue or body samples required to comply with legally mandated rabies testing requirements or other public health needs. vii) Request assistance from the San Luis Obispo County District Attorney's Office Bureau of Investigations when an animal bite results in significant injury causing death or likely to cause death or in any case Animal Services believes may require significant criminal investigation beyond the experience of Animal Services Officers.
viii)Receive and respond to reports of animals, domestic or wild, which are suspected to be rabid or to have been exposed to rabies infection and attempt to affect their capture. Captured animals will be processed in accordance with state codes pertaining to rabies control.
ix) Receive and process all applications related to the keeping and sale of household pets; inspect and regulate permitted operations in accordance with local and state codes.
x) Provide for the recording, investigation, administrative hearings, and issuance of findings and orders related to animal nuisances, animal seizures or confiscations, and dangerous or vicious animals. Nuisances which remain

unresolved following the issuance of an abatement order will be processed to court through the District Attorney’s office.
xi) Assist in the preparation and filing of court documents related to the civil and/or criminal prosecution of cases involving violation of municipal codes pertaining to the care, treatment, and keeping of domestic animals.
xii) Provide for the preparation, filing and civil or criminal prosecution of cases involving violations of California state codes pertaining to the care, treatment, and keeping of domestic animals.
c) Reporting: Provide to the City bi-annual service activity and financial reports reflecting field services, licensing, and shelter operations, programs. Reports will detail this information for both the individual quarter and year-to-date. d) Collaboration: Participate collaboratively with the City regarding matters impacting the provision of animal care and control services. County shall not append or modify the provisions of Title 9 of the San Luis Obispo County Code without having first consulted with the City.
2) City Obligations. The City shall perform the following duties:
a) Ordinance Conformity: City shall adopt by reference Title 9 of the San Luis Obispo County Code.
i) In the event that City does not desire to incorporate specific provisions of Title 9, those provisions may be individually exempted from adoption. ii) In the event that City desires to incorporate additional provisions related to the care and keeping of animals which are not established by Title 9, those provisions may be added and individually specified within City’s municipal code.

Animal Services will not be responsible for enforcing any added provisions which are substantially outside of the Animal Service Division’s normal scope of operations.
b) City shall immediately notify the County upon determining that any animal in the custody of Animal Services is believed to have caused serious bodily injury (as defined by Penal Code 243(f)(4)) or death to a person and request that the body of that animal be preserved in the event that it dies or is euthanized while in custody. c) Assistance: Provide such assistance and support to Animal Services personnel as may be reasonably necessary to safely and effectively execute the operations required by this contract within the City limits.
d) Collaboration: Participate collaboratively with the County regarding matters impacting the provision of animal care and control services. City shall not append or

modify the provisions of its municipal code related to animal care and control without having first consulted with County.
3) Animal Care and Control Coordination Group: The County and City agree that Animal Services is a shared interest of all parties and that all participating jurisdictions will share in the cost and revenue generated based on actual costs and fees generated in each jurisdiction. Further, policy-setting, procedural changes and ordinance development will happen in a collaborative manner, with all participating jurisdictions having input into the best way to conduct these services in San Luis Obispo County. a) To coordinate efforts, the participating jurisdictions, including the City and County agree to meet and confer periodically to discuss current issues as they relate to the fiscal and practical application of this contract, along with other potential items identified by the group. Such meetings shall be coordinated by the County Animal Services Manager from time to time as necessary, but no less than twice yearly. 4) As part of this commitment, the County agrees to develop performance benchmarks and communicate them quarterly to the group on the following:
a) Cost of Services/per Capita (by City) overtime.
b) Cost of services/per City over time.
c) Number of Full-Time Equivalent (FTE) positions within Animal Control over time. d) Number of field FTE within Animal Control over time. e) Geographical Information Service (GIS) heat maps of calls for service over time by City (requested development from County IT Department, maps to be provided when available).
f) Average response times for priority calls over time by City. g) Percentage of animals licensed by the City over time. h) Other data points charted out over time that were used to spread out the Animal Shelter costs.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT B – COMPENSATION
1) First Year Service Fee: The City agrees to pay to the County the amount of $178,541 for services provided under this Contract during the first year of service. 2) Subsequent Years’ Service Fee: The County shall compute on an annual basis a service fee assessed to the City for services provided under this Contract. 3) Timing of Service Fee: The County shall calculate annual service fees and provide them to the City prior to April 15th of each year, with service fees becoming effective on July 1st of that year. No further action by either party is necessary to implement new fees in subsequent years.
4) Service Fee Methodology: The County shall use a service-based methodology for determining city service fees. The service-based methodology shall be based on three key facets of Animal Services' operations:
• Field Service
• Licensing
a) Determination of Cost of Service - The cost of providing services to the City will be calculated by determining the average percentage of service allocated to the City over the preceding three years for each of the four facets of operations and multiplying this percentage against Animal Services operational budgeted expense for each facet. Combined, this then represents the City's total service cost in proportion to the County and all other contracting parties. b) Credit for Fees - The average annual revenue generated from fees or fines assessed directly to residents of the City by Animal Services over the preceding three years will be applied against the City's total service cost.
c) Determination of Service Fee - The fee assessed to the City for provision of services outlined in this contract shall be determined by subtracting the average revenue as determined by item 4b of this exhibit from the average cost of service as determined by item 4a of this exhibit.
5) Billing: County shall bill City for contracted services in quarterly increments. City shall remit payment to the County within thirty (30) days of receipt of billing. 6) Year End Variance – In the event that Animal Services’ net operational costs for any fiscal year are less than projected in the calculation of the service fee methodology (Item 4 of this exhibit), the City’s proportionate share of that savings shall be applied as a credit against the calculated service fee for the subsequent fiscal year.

In the event that Animal Services net operational costs for any fiscal year exceed projections in the calculation of the service fee methodology (Item 4 of this exhibit), the City’s proportionate share of the overage shall be added to the calculated service fee for the subsequent fiscal year.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT C – DURATION
1) Effective Date: This contract shall be effective July 1, 2025, or fifteen (15) days following of the date of the signature of the County, whichever is later. The County shall be the last to sign this contract.
2) Service Date: City and County acknowledge that the services provided under this contract are a continuation of those established during the preceding contract term and that these services may have been provided continually and without interruption between July 1, 2025, and the date of execution by the County in order to ensure the interest of public service.
a) Both City and County expressly and retroactively authorize the provision of these services.
b) For the purposes of billing and determination of the First Year Service Fee as provided in Exhibit B, the first year of service will be presumed to have begun on July 1, 2025.
3) Duration: The term of this Contract shall expire June 30, 2030, unless terminated sooner as provided in Exhibit D.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT D – GENERAL CONDITIONS
1) Termination: Either party may terminate this contract at any time by giving the other party thirty (30) days written notice of termination. Termination for convenience shall have no effect upon the rights and obligations of the parties arising out of any services provided occurring prior to the effective date of such termination. County shall be paid for all work satisfactorily completed prior to the effective date of termination. In the event that the contract is terminated prior to the conclusion of a quarterly billing cycle, the City shall remit to the County a prorated amount based upon the number of days of service relative to the total number of days in the billing cycle. 2) Indemnification: Nothing in the provisions of this Contract is intended to create duties or obligations to, or rights in third parties not party to this contract or affect the legal liability of either party to contract, by imposing any standard of care respecting the regulation and enforcement of laws regarding animals different from the standard of care imposed by law.
a) It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County under or in connection with any work, authority or jurisdiction delegated to the County under this Contract. It is also understood and agreed that pursuant to Government Code 895.4, County shall defend, indemnify and save harmless the City, all officers, and employees from all claims, suits or actions of every name, kind, and description brought forth or on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by the County under this Contract except as otherwise provided by Statute.
b) It is understood and agreed that neither County nor any officer or employee thereof, is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Contract. It is also understood and agreed that pursuant to Government Code Section 895.4, the City shall defend, indemnify and save harmless the County, all officers and employees from all claims, suits or actions of every name, kind and description brought forth on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by City under connection with any work, authority or jurisdiction delegated to the City under this Agreement except as otherwise provided by Statute.

3) Notices: Any notice, payment, statement, or demand required or permitted to be given hereunder by either party to the other shall be affected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the parties at the addresses appearing below, but each party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three days after mailing.

COUNTY CITY
Eric Anderson, DVM Matthew Downing
Animal Services Manager Arroyo Grande City Manager
865 Oklahoma Ave. 300 E. Branch Street
San Luis Obispo, CA 93405 Arroyo Grande, CA 93420
4) Status of the Parties' Officers/Employees/Agents: Neither party’s officers, employees, agents, partners, other contractors or subcontractors shall be deemed to be employees of the other party at any time. Nothing in this contract shall be construed as creating a civil service employer - employee relationship or a joint venture relationship. No officer, employee, agent, partner, other contractor or subcontractor of the other party shall be eligible for membership in or receive benefits from any plan for hospital, surgical, or medical insurance, or be eligible for membership in any retirement program, paid vacation, paid sick leave, other leave, with or without pay, collective bargaining rights, grievance procedures, appeals to the Civil Service Commission or any other benefits which inures to or accrues to an employee of the other party. The only performance and rights due the other party are those specifically stated in this contract. 5) Governing Law and Venue: This Contract shall be governed by and construed in accordance with the laws of the State of California. Additionally, this contract has been formed and shall be performed in San Luis Obispo County; the venue for any legal action on the contract shall be in San Luis Obispo County. 6) Entire Agreement: This Contract embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties relating to matters herein; and except as otherwise provided herein, cannot be modified without the prior written agreement of the parties. 7) Severability: In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract.
8) Successors and Assigns: This Contract shall be binding upon and insure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and, except as otherwise provided in this Contract, their assigns.

9) Captions: The captions to the various clauses of this Contract are for information purposes only and shall not alter the substance of the terms and conditions of this Contract.
10) Authorization: Each of the parties represents and warrants to the other that this Contract has been duly authorized by all necessary corporate or governmental action on the part of the representing party and that this Contract is fully binding on such party.

Item 9.g.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/ Director of Public Works BY: Shannon Sweeney, City Engineer
SUBJECT: Public Works Surplus Vehicles
DATE: June 24, 2025
RECOMMENDATION:

Adopt a Resolution declaring specified equipment to be surplus and authorizing the sale or disposal thereof.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Surplus vehicles will be sent to auction and proceeds from the sale of these vehicles will be returned to the City’s General Fund.

BACKGROUND:

The Public Works Department operates 40 vehicles and other equipment. This vehicle pool is assessed annually. As vehicles age, they become less reliable, and some become non-compliant with California State emissions requirements.

A new bucket truck and crew cab pickup were recently purchased with Council authorization as replacements for a bucket truck (PW-5) and utility vehicle (PW-8). Those replacement vehicles have arrived and are in service.

ANALYSIS OF ISSUES:

The vehicle slated for surplus have outlived their useful lives and have begun accruing significant maintenance costs. Replacement vehicles have already been purchased and are in service.

ALTERNATIVES:

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

1. Surplus two vehicles and authorize their sale or disposal by approving the attached Resolution; or

2. Do not surplus two vehicles and authorize their sale or disposal; or

3. Provide other direction to staff.

Item 9.g.

City Council
Public Works Surplus Vehicles
June 24, 2025

ADVANTAGES:

Authorizing surplus vehicles for sale through auction provides the best opportunity to recoup any remaining value from the sale of these vehicles.

DISADVANTAGES:

No disadvantages identified.

ENVIRONMENTAL REVIEW:

Declaring vehicles as surplus and authorizing their sale is not a project subject to the California Environmental Quality Act (“CEQA”) because these actions have no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (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. Resolution

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING SPECIFIED EQUIPMENT

TO BE SURPLUS AND AUTHORIZING THE SALE OR

DISPOSAL THEREOF
WHEREAS, Government Code Section 37350 authorizes the City Council to control and dispose of property for the common benefit; and
WHEREAS, the City Council wishes to declare certain equipment to be surplus and has determined that sale or disposal, as indicated below, is appropriate and will benefit the City:

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARES, FINDS AND RESOLVES AS FOLLOWS:

Section 1. The City Council hereby declares the following equipment to no longer be useful or necessary to the City’s services and programs and therefore surplus property, to be disposed of as indicated below:

Section 2. Staff is authorized to dispose of the listed equipment in accordance with the foregoing provisions and those of Arroyo Grande Municipal Code Section 3.08.120.

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 24th day of June, 2025.

Year / Make / Model Dept. Serial#
1999 Ford (PW-15) Public Works 1FDWF36F1XED22936
2006 Ford Explorer (PW-8) Public Works 1FMEU62E96UA09766

RESOLUTION NO.

PAGE 2

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

Item 9.h.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Award Contract for Parkside Park Play Structure, PW 2024-09 DATE: June 24, 2025
RECOMMENDATION:
1) Adopt a Resolution awarding a design-build construction contract for the Parkside Park Play Structure Project to Landscape Structures, Inc. for $223,980.25, and authorizing the City Manager to execute the design-build construction contract subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Authorize the City Manager to approve change orders of 10% of the contract amount, up to $22,398.02, for unanticipated costs during the construction phase of the Parkside Park Play Structure Project; and
3) Find the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15302 as replacement or reconstruction of existing structures or facilities.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The FY 2024-25 budget includes $250,000 for the Parkside Park Play Structure Project (the “Project”) from the Parkside Village Assessment District. Construction, contingency, and estimated playground inspector costs total $249,878.27, which is within the budget.

BACKGROUND:

Residents in the Parkside Village Assessment District (Parkside) requested the replacement of the existing playground equipment in the park area of that district. The annual engineer's evaluation and report for the Parkside for Fiscal Year 2024-25 analyzed this replacement project for the existing playground area. The Engineer's Report found the cost estimate of $250,000 to replace the playground and surfacing reasonable and within the Assessment District’s total budget; and therefore, would not increase assessment charges. Staff agreed that the condition of the playground necessitates

Item 9.h.

City Council
Award Contract for Parkside Park Play Structure, PW 2024-09 June 24, 2025

replacement. On June 25, 20241, the City Council adopted a Resolution directing the levy of the annual assessment for the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2024-25, which included $250,000 for playground replacement.

ANALYSIS OF ISSUES:

City staff met several times with Parkside residents to develop design elements that they wanted in the new playground and prepared a Request for Proposals (RFP) that reflected these elements. A Notice Inviting Bids was issued on April 7, 2025, was published in the local paper, posted on the City’s website, and distributed to plan rooms. Each proposer was invited to submit up to two designs for the playground area.

Five bids were received by the bid opening date and time of April 29, 2025, 2:00 PM (Attachment 3). One bid was disqualified because it was missing the elements from Addendum #1. One bid was disqualified and not shown on the Proposal Opening Log because it had only been submitted electronically and was missing elements from Addendum #1.

The second part of selecting the playground design was to obtain input from the Parkside residents. The three qualified firms each had submitted two unique design options, so a total of six playground designs were assembled. A letter requesting input on the proposed designs was sent to the residents who own and/or reside in Parkside (Attachment 2). Of the 72 letters sent, staff received 34 responses. Two were disqualified because they were received from the same address, which was against the guidelines.

Landscape Structures, Inc – Option 2 Nature Climbing 2 Swings 16 votes Great Western Installations – Option 2 Vista Tree Top Spinner 9 votes Zoom Recreation, Inc. – Option 2 Rio Web Whirl 5 votes
Landscape Structures, Inc – Option 1 Hot Air Balloon 1 vote Write In “Make the park more teen and adult friendly.” 1 vote Great Western Installations Option 1 Oceanscapes Tree Swing 0 votes Zoom Recreation, Inc. Option 1 Monarch Team Swing 0 votes The playground design that received the most votes was Option 2 submitted by Landscape Structures, Inc. for a cost of $223,980.25. A collage of images of that design is in Attachment 3.

The project does not meet the statutory threshold for formal design-build procurement under Public Contract Code section 22162 (which generally applies to projects over $1 million). Staff recommends proceeding under a modified design-build approach and finding that a traditional project delivery method is not in the public interest. Playground

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=e4fec941-ba9c-4535-932afa7d8ff7d8ad&lang=English&Agenda=Merged&Item=50&Tab=attachments

Item 9.h.

City Council
Award Contract for Parkside Park Play Structure, PW 2024-09 June 24, 2025

projects are industry-specific and typically require integration of design, fabrication, and installation, which is often impractical under traditional design-bid-build methods. Designbid-build can result in inefficiencies, incompatible specifications, and unnecessary costs.

Awarding the contract directly to Landscape Structures, Inc. through a design-build contract is justified based on public welfare considerations, statutory discretion, and the City’s goal of delivering a safe, timely, and cost-effective improvement that reflects community input. Staff has made findings to support this approach and recommends that the Council adopt those findings and authorize the City Manager to execute the contract, subject to any final adjustments necessary to protect the City's interests.

ALTERNATIVES:

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

1. Staff’s recommendation:
1) Adopt the Resolution awarding a design-build construction contract for the Parkside Park Play Structure Project to Landscape Structures, Inc. for $223,980.25, and authorizing the City Manager to execute the design-build construction contract, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Authorize the City Manager to approve change orders of 10% of the contract amount, up to $22,398.02, for unanticipated costs during the construction phase of the Parkside Park Play Structure Project.
3) Find the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15302 as replacement or reconstruction of existing structures or facilities.

2. Modify staff’s recommendation and adopt; or

3. Reject all proposals and rebid the project; or

4. Provide other direction to staff.

ADVANTAGES:

The current playground and rubber surface at Parkside Park need replacement. The residents of Parkside were engaged to create the RFP, and their input determined the final design for the playground. Completing the replacement of the playground equipment and the pour-in-place rubber surface is within the scope and budget of the Parkside Village assessment district.

DISADVANTAGES:

Parkside Park will be closed for 2-3 weeks during construction. There will be some noise and construction vehicles in the neighborhood during this time. The neighborhood residents will be notified in advance of the construction and access to driveways and homes will not be affected.

Item 9.h.

City Council
Award Contract for Parkside Park Play Structure, PW 2024-09 June 24, 2025

ENVIRONMENTAL REVIEW:

The Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15302 as replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The proposed Project is intended to replace the existing playground facility, and will be used for the same playground purposes. The capacity of each structure is substantially similar and intended for playground use.

Further, none of the exceptions to the use of categorical exemptions stated in State CEQA Guidelines section 15300.2 apply: The Project is not located in a particularly sensitive environment because it is proposed in an area already developed with a play structure.

No cumulative impact would occur from the Project as only one play structure is proposed, there will be no significant effect on the environment because the Project involves no unusual circumstances and only the ordinary construction of a playground, and involves no damage to scenic resources. The Project is not located on a hazardous waste site, and the project does not involve substantial impacts to a historical resource.

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. Resolution

2. Construction Contract

3. Proposal Opening Log

4. Letter to Residents Inviting Input

5. Top Vote Winner Playground Collage

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AWARDING A CONSTRUCTION

CONTRACT FOR THE PARKSIDE PARK PLAY

STRUCTURE PROJECT TO LANDSCAPE STRUCTURES,
INC. (PW 2024-09)
WHEREAS, residents in the City of Arroyo Grande Parkside Village Assessment District previously requested the replacement of the existing playground equipment in the park area of that district; and
WHEREAS, on June 25, 2024, the City Council adopted a Resolution directing the levy of the annual assessment for the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2024-25 which included $250,000 for playground replacement; and WHEREAS, City staff met with Parkside residents to develop design elements for the new playground and prepared a Request for Proposals (“RFP”) that reflected these elements; and
WHEREAS, an RFP was issued on April 7, 2025, for the design and construction of the Parkside Park Play Structure (the “Project”) which is further described in the RFP set forth in Exhibit “A” attached hereto and incorporated herein by reference; and WHEREAS, the City solicited input from the Parkside Village residents regarding the responsive proposals. The playground design that received the most votes was submitted by Landscape Structures, Inc. (the “Current Proposal”) for a cost of $223,980.25; and
WHEREAS, pursuant to Public Contract Code section 22160 and section 22162, the City is authorized to procure design-build contracts public works projects in excess of one million dollars ($1,000,000), awarding the contract either the low bid or the best value; and
WHEREAS, the estimated cost of this project is approximately $223,980.25, less than one million dollars, which would otherwise prevent the City from utilizing the design-build procurement method; and
WHEREAS, playground projects are typically designed and supplied by specialized vendors who also install the equipment, and the traditional design-bid-build model— requiring separate architectural plans and specifications—can result in misaligned or unusable designs; and
WHEREAS, utilizing the Design-Build delivery method for such projects is expected to be more cost-effective, reduce the risk of incompatibilities between design and equipment,

RESOLUTION NO.

PAGE 2
and streamline the project schedule by consolidating design, supply, and installation responsibilities under a single contract. This approach better aligns with industry practice, reduces administrative burdens, and ensures that the final product meets both technical and community needs, thereby serving the City’s best interests; and WHEREAS, “[a] public entity's award of a contract, and all of the acts leading up to the award, are legislative in character. [T]he letting of contracts by a governmental entity necessarily requires an exercise of discretion guided by consideration of the public welfare[]”. (Mike Moore's 24-Hour Towing v. City of San Diego (1996) 45 Cal.App.4th 1294, 1303); and
WHEREAS, “where competitive proposals work an incongruity and are unavailing as affecting the final result, or where competitive proposals do not produce any advantage, or where it is practically impossible to obtain what is required and to observe such form, competitive bidding is not applicable.” (Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App. 3d 631, 636); and
WHEREAS, “[t]he law neither does nor requires idle acts.” (Civil Code, § 3532); and WHEREAS, City staff has determined on the basis of the RFP and Landscape Structures, Inc.’s Proposals that awarding a design-build contract for the Project to Landscape Structure Inc. without further competitive solicitation is in the best interest of the City as guided by consideration of the public welfare for the foregoing reasons (“Staff Findings”).

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

1. The above recitals are true and correct and are incorporated herein in their entirety.

2. The City Council adopts the Staff Findings as its own (“Council Findings”).

3. The City Manager or designee is hereby authorized and directed to enter into a design-build contract with Landscape Structure Inc. to design and construct the Project, in substantially the same form as shown as attached in Exhibit B (the “Proposed Contract”), consistent with the Current Proposal and RFP, subject to minor revisions, if any, approved by the City Manager and City Attorney to comply with applicable law or otherwise ensure that the City contracts for the Project on clear, unambiguous terms that are in the best interest of the City.

4. The Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15302 as replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The proposed Project is intended to replace the existing playground facility, and will be used for the same

ATTACHMENT 1
playground purposes. The capacity of each structure is substantially similar and intended for playground use.

Further, none of the exceptions to the use of categorical exemptions stated in State CEQA Guidelines section 15300.2 apply: The Project is not located in a particularly sensitive environment because it is proposed in an area already developed with a play structure. No cumulative impact would occur from the Project as only one play structure is proposed, there will be no significant effect on the environment because the Project involves no unusual circumstances and only the ordinary construction of a playground, and involves no damage to scenic resources. The Project is not located on a hazardous waste site, and the project does not involve substantial impacts to a historical resource.

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 24th day of June, 2025.

RESOLUTION NO.

PAGE 4

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

REQUEST FOR PROPOSAL
FOR

PARKSIDE PARK PLAY STRUCTURE
PW 2024-09
Date Released: April 7, 2025
Mail/Deliver to:

City of Arroyo Grande
Attention: Theresa Wren, CIP Manager
1375 Ash Street
Arroyo Grande, CA 93420
Proposals Due:
2:00 P.M.

Tuesday, April 29, 2025

EXHIBIT A

REQUEST FOR PROPOSAL

PARKSIDE PARK PLAY STRUCTURE
PW 2024-09
The City of Arroyo Grande is inviting qualified firms to submit proposals for project scope including demolition and removal of existing playground equipment, remove and replace existing rubber surface in existing play area, design of new playground equipment with requested elements, purchase and installation of new playground equipment at Parkside Park (484 Bakeman Lane) in Arroyo Grande.

This Request for Proposals is posted on the City’s website at http://www.arroyogrande.org/Bids.aspx
Any changes, additions, or deletions to this Request for Proposal will be in the form of written addenda issued by the City. Any addenda will be posted on the website. Prospective proposers must check the website for addenda or other relevant new information during the response period. The City is not responsible for the failure of any prospective proposer to receive such addenda. All addenda so issued shall become a part of this Request for Proposal.

A nonmandatory pre-bid conference will be held on April 15, 2025, at 10:00 AM on-site. Any questions related to this RFP shall be submitted in writing to the attention of Theresa Wren, Capital Improvement Project Manager, via email at [email protected]. Questions shall be submitted before 2:00 pm on April 18, 2025. No oral questions or inquiries about this RFP shall be accepted.

If your firm is interested and qualified, please submit three (3) hard copies of your proposed package, one (1) Adobe Acrobat Portable Document Format (PDF) file of the proposal on flash drive. Proposals must be clearly marked and delivered no later than 2:00 pm, Tuesday, April 29, 2025. Late submissions after the deadline or proposals delivered via fax will not be accepted.

Submit and label as follows:

PROPOSAL for
PARKSIDE PARK PLAY STRUCTURE PW 2024-09
City of Arroyo Grande
Attention: Theresa Wren, CIP Manager
1375 Ash Street
Arroyo Grande, CA 93420

City of Arroyo Grande
RFP: Parkside Park Play Structure
Contents
GENERAL INFORMATION AND BACKGROUND..................................................................................... 1 OUTLINE OF SERVICES TO BE PROVIDED ........................................................................................... 1 DESIGN ELEMENTS ................................................................................................................................. 2 IMPORTANT NOTES................................................................................................................................. 2 DISCRETION AND LIABILITY WAIVER .................................................................................................... 3 VICINITY MAP AND PROJECT AREA ...................................................................................................... 4 PROJECT SITE PHOTOS.......................................................................................................................... 6 FORMAT OF PROPOSAL.......................................................................................................................... 8 EVALUATION OF PROPOSALS..............................................................................................................10 SCHEDULE OF PROPOSAL ACTIVITIES (Pacific Standard Time)........................................................10 PAYMENT AND PERFORMANCE BOND ...............................................................................................10 FINAL COMMENTS..................................................................................................................................10 ATTACHMENT A – SAMPLE CITY AGREEMENT..................................................................................11

City of Arroyo Grande
RFP: Parkside Park Play Structure
1 GENERAL INFORMATION AND BACKGROUND
The City of Arroyo Grande (City) is located on California’s central coast approximately halfway between Los Angeles and San Francisco and has a population of approximately 17,555. The City is currently a General Law city, operating under the City Council/City Manager form of government. Arroyo Grande is a full-service city, with police, streets, engineering, parks, recreation, water and sewer services. Additionally, residents in the neighboring cities of Pismo Beach, Grover Beach, and Oceano use many of Arroyo Grande’s recreational services. Fire services are provided through the Five Cities Fire Authority, a joint powers authority established between the City of Arroyo Grande, the City of Grover Beach, and the Oceano Community Services District.

BACKGROUND:

Approximately twenty years ago, the current playground at Parkside Park in Arroyo Grande was constructed during development of the adjacent residential neighborhood. That residential neighborhood is part of an assessment district that pays for Parkside Park and this playground.

The rubber surfacing within the concrete border around the play structure is beyond repair and needs to be removed and replaced. The existing playground equipment needs to be removed and replaced with playground equipment that meets the requirements outlined below. The City also wants new surfacing, and a playhouse installed in an adjacent area as indicated below. The City will evaluate all the proposals received. The designs of the qualified proposers will be presented to the neighborhood residents within the assessment district to vote on their preferred design. Equipment design must meet the requirements of the Americans with Disabilities Act (ADA) and utilize International Playground Equipment Manufacturers Association (IPEMA) certified equipment that meets or exceeds all federal and state guidelines and conforms to the playground-related technical standards set by the American Society of Testing Materials International (ASTM) and the U.S. Consumer Products Safety Commission.

OUTLINE OF SERVICES TO BE PROVIDED

1. Demolish and remove existing play structure.

2. Demolish and remove the existing rubber surface.

3. All materials demolished or removed are the property and responsibility of the Contractor.

4. Provide and install new playground equipment, including equipment within the existing play area and the playhouse requested for the adjacent trapezoidal area.

5. Install new rubber surface within the existing play area and the trapezoidal area.

6. Provide warranty and maintenance information for the installed equipment.

City of Arroyo Grande
RFP: Parkside Park Play Structure
2 DESIGN ELEMENTS
• ADA compliant
• All ages playground
• Utilize the space efficiently. Residents feel there is a lot of wasted space, especially between the existing play structure and existing swings. • Elements preferred include a slide and swings.
• A small playhouse in the trapezoidal area as noted on the vicinity map. • Budget Limit: $225,000
• Must meet all national playground safety code requirements • All equipment shall be installed by a factory trained and certified installer.

IMPORTANT NOTES
• Contractor(s) must be prepared to comply with all state, federal and local requirements for play structure equipment. Contractors are responsible for verifying site conditions. No allowances will be made if a Contractor fails to adequately examine a location before submitting a Proposal. • Following installation, a thorough audit of all newly installed play equipment will be performed by an independent Certified Playground Safety Inspector (CPSI) hired by the City. Contractor(s) will be required to address and resolve any identified deficiencies within five (5) days of notification of the deficiencies by the General Contractor or City Representative.
• All materials demolished or removed are the property and responsibility of the Contractor.

The City has made every effort to include sufficient information within this Request for Proposal for a Contractor to prepare a responsive, comprehensive proposal. To achieve an equitable dissemination of information, a nonmandatory pre-bid onsite meeting will be held to allow all interested firms to ask questions for the mutual benefit of all involved. The timing of the proposal process is subject to change, depending on the needs of the City, but is anticipated as follows:
a) Distribution of Request for Proposals: April 7, 2025 b) Questions: If you have questions, please submit your questions no later than April 18, 2025, to Theresa Wren, Capital Improvement Project Manager at (805) 473- 5441 or [email protected].
c) Proposal Submission: Proposals must be clearly marked and delivered as noted below no later than 2:00 pm, April 29, 2025. Late submissions after the deadline or proposals delivered via fax will not be accepted. A total of three (3) identical proposals and one (1) Adobe Acrobat Portable Document Format (PDF) file of the proposal on flash drive must be submitted and labeled as follows:

City of Arroyo Grande
RFP: Parkside Park Play Structure
3 PROPOSAL for
PARKSIDE PARK PLAY STRUCTURE PW 2024-09
City of Arroyo Grande
Attention: Theresa Wren, CIP Manager
1375 Ash Street
Arroyo Grande, CA 93420
d) Proposal Review: Our review committee will evaluate each proposal submitted.

It is anticipated that the review process will be completed by May 20, 2025. e) Notification to all proposers: We anticipate sending written notification to all Contractors regarding the outcome of the review and contract award process by June 11, 2025.

DISCRETION AND LIABILITY WAIVER
The City reserves the right to exercise discretion and apply its judgment with respect to all proposals submitted.

The City reserves the right to reject all proposals, either in part or in its entirety, or to request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals.

The Contractor, by submitting a response to this RFP, waives all rights to protest or seek any legal remedies whatsoever regarding any aspect of this RFP.

The City reserves the right to cancel this RFP, in part or in its entirety, including, but not limited to selection procedures, submittal date, and submittal requirements. The City reserves the right to waive any minor irregularities and to request additional information from proposing firms. If the City cancels or revises the RFP, all interested firms will be notified using email.

By requesting proposals, the City is in no way obligated to award a contract or pay expenses of the proposing Contractor in connection with the preparation or submission of a proposal.

All proposals submitted in response to this RFP become the property of the City and public records and, as such, may be subject to public review.

City of Arroyo Grande
RFP: Parkside Park Play Structure
4 Approx. 65’
NTS
Approx. 24’
Approx. 1785 SF of
rubber surface to be
removed and
replaced. New play
equipment to be
installed.

VICINITY MAP AND PROJECT AREA
Approx. 75 SF of
existing dirt. New
rubber surface and
playhouse to be
installed.

City of Arroyo Grande
RFP: Parkside Park Play Structure
5

City of Arroyo Grande
RFP: Parkside Park Play Structure
6 PROJECT SITE PHOTOS
Existing playground and surface, facing west.

Existing playground and surface, facing east.

City of Arroyo Grande
RFP: Parkside Park Play Structure
7 Existing swings and surface, facing east.

Trapezoid area for new rubber surface and small playhouse, facing northwest.

City of Arroyo Grande
RFP: Parkside Park Play Structure
8 FORMAT OF PROPOSAL
To adequately compare and evaluate proposals objectively, all proposals must be twenty-five (25) pages or less.

One (1) original, two (2) copies, and one (1) Adobe Acrobat Portable Document Format (PDF) file of the proposal on flash drive shall be submitted in sealed packages. The Proposer’s name and address should be marked on the outside of the envelope.

Facsimile, e-mail transmittals or offers communicated by telephone will not be accepted or considered. Proposal information that is not submitted in sealed packages will not be considered. The Proposal should contain the following information:

I. INTRODUCTION
A cover letter containing the following information:
a. A description of the capability and history of the contractor. b. A summary of the contractor’s understanding of the project, including a brief description of how the project would be organized and built. c. Signed by a signatory who is authorized to bind the company to this proposal.

II. RELEVANT EXPERIENCE
History of similar projects completed within the last three years, including cost and client contact information.

III. LICENSES AND CERTIFICATIONS
a. California State Contractors License Board contractor license number and type of licenses held.
b. Proof of installer factory certification
IV. REFERENCES
A list of three (3) references including product or service provided, name of agency, contact person, phone number and/or e-mail.

V. DESIGN NO. 1
The following items shall be provided in a section labeled DESIGN NO. 1. If any required items listed below are missing from the proposal, DESIGN NO. 1 will not be considered:

A. EQUIPMENT

1. A scaled site plan showing the proposed equipment and relationship to existing boundaries.

2. Drawings and manufacturer’s printed literature and specifications for each component of the modular equipment being proposed.

3. Information regarding the rubber surface proposed.

B. SCHEDULE
Anticipated lead time for equipment procurement, delivery and installation.

City of Arroyo Grande
RFP: Parkside Park Play Structure
9 B. COST
Breakdown of cost including, but not limited to:

1. Equipment (including structures, components, signage, hardware, equipment manuals and operations manuals)

2. Demolition and removal of existing structures and surface. All materials demolished or removed are the property and responsibility of the Contractor.

3. Installation of equipment

4. Installation of rubber surface.

D. WARRANTIES
Submit equipment warranty for review, including availability of replacement components, and proof of Manufacturer's Product Liability Insurance VI. DESIGN NO. 2
The Contractor may choose to submit a second design. NO MORE THAN TWO DESIGNS WILL BE CONSIDERED. If the Contractor chooses to submit a second design, the following items shall be provided in a section labeled DESIGN NO. 2. If any required items listed below are missing from the proposal, the design will not be considered:

A. EQUIPMENT

1. A scaled site plan showing the proposed equipment and relationship to existing boundaries.

2. Drawings and manufacturer’s printed literature and specifications for each component of the modular equipment being proposed.

3. Information regarding the rubber surface proposed.

B. SCHEDULE
Anticipated lead time for equipment procurement, delivery and installation.

C. COST
Breakdown of cost including, but not limited to:

1. Equipment (including structures, components, signage, hardware, equipment manuals and operations manuals)

2. Demolition and removal of existing structures and surface. All materials demolished or removed are the property and responsibility of the Contractor.

3. Installation of equipment

4. Installation of rubber surface.

D. WARRANTIES
Submit equipment warranty for review, including availability of replacement components, and proof of Manufacturer's Product Liability Insurance

City of Arroyo Grande
RFP: Parkside Park Play Structure
10 EVALUATION OF PROPOSALS
The Proposals received will be evaluated in a two-step process.

Step 1: City staff evaluate for responsiveness based on the following criteria:
• Inclusion of the requested Design Elements
• Thoroughness and understanding of the tasks to be completed • Cost within the established budget
• Relevant experience
• Installation within 90 days of Notice to Proceed
Proposals that are unresponsive based on the criteria in Step 1 will not move onto Step 2.

Step 2: Final Selection by the Parkside Park Assessment District Residents The City will present the designs of the responsive proposers from Step 1 to the residents within the Parkside Park Assessment District. The residents of the Parkside Park Assessment District will be able to cast one vote for their preferred design. The City will tabulate the results to determine the Contractor to be awarded the Contract.

SCHEDULE OF PROPOSAL ACTIVITIES (Pacific Standard Time) Estimated and subject to change
Schedule
Distribution of RFP April 7, 2025
Pre-Bid Conference April 15, 2025 @10:00AM
Questions due April 18, 2025
Proposal submission April 29, 2025 @ 2:00 PM
Proposal review May 1, 2025
Assessment District Voting May 2 – 16, 2025
Contract approval by City Council June 10, 2025
Project to commence July 14, 2025

PAYMENT AND PERFORMANCE BOND
Pursuant to California Civil Code Section 9550 et seq, any successful bidder for cumulative work more than $25,000 shall be furnished to the City at the time of contract execution a payment bond approved by the City in an amount equal to one hundred percent (100%) of the contract price. The successful bidder for cumulative work in excess of $25,000 shall also furnish to the City at the time of execution of the contract a faithful performance bond approved by the City in an amount equal to one hundred percent (100%) of the contract price.

FINAL COMMENTS
The City of Arroyo Grande appreciates the efforts all the Contractors have put forth in responding to the Request for Proposal.

ATTACHMENT A – SAMPLE CITY AGREEMENT

ARROYO GRANDE

CONSTRUCTION CONTRACT
PARKSIDE PARK PLAY STRUCTURE - PW 2024-09

1. PARTIES AND DATE.

This contract ("Contract" or "Contract Documents") is made and entered into this _____ day of _________, 20__ by and between the Arroyo Grande, a public agency of the State of California ("City") and [NAME OF COMPANY], a [TYPE OF BUSINESS; I.E., CORPORATION (INCLUDE STATE OF INCORPORATION), LIMITED LIABILITY COMPANY, SOLE PROPRIETORSHIP, ETC.] with its principal place of business at [ADDRESS] ("Contractor'').

City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this Contract.

2. RECITALS.

2.1 City. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the City on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced in providing [***INSERT TYPE***] services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. The following license classifications are required for this Project: A

2.3 Project. City desires to engage Contractor to render such services for the PARKSIDE PARK PLAY STRUCTURE - PW 2024-09 ("Project") as set forth in this Contract.

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, a performance bond, a payment bond, and all insurance documentation, as required by the Contract.

3. TERMS

3.1 Incorporation of Documents. This Contract and the Contract Documents hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto:
• Plans and Specifications
• Bid and Addenda
• Payment and Performance Bonds
• Bid (Exhibit "B"). Unit prices as corrected by contractor will be used as basis for payment.

3.2 Contractor's Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, for the agreed price. All Work shall be subject to, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference.

3.2.1 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the

performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in writing by a valid change order executed by the City. Should Contractor request a change order due to unforeseen circumstances affecting the performance of the Work, such request shall be made within five (5) business days of the date such circumstances are discovered or shall waive its right to request a change order due to such circumstances. If the Parties cannot agree on any change in price required by such change in the Work, the City may direct the Contractor to proceed with the performance of the change on a time and materials basis.

3.2.2 Substitutions/"Or Equal". Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words "or equal."
Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract. However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any "or equal" material, process or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of "or equal" requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed "or equal" substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article.

The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The City has the complete and sole discretion to determine if a material, process or article is an "or equal" material, process or article that may be substituted. Data required to substantiate requests for substitutions of an "or equal" material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted "or equal" material, process or article is equivalent to that specified in every way except as listed on the affidavit. Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted "or equal" material, process or article, and substantiates that it is an "or equal" to the material, process or article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted "or equal" material, process or article. Failure to submit all the required substantiating data, including the signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the City's costs associated with the review of substitution requests. Contractor shall be responsible for all costs related to a substituted "or equal" material, process or article. Contractor is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City. Such schedules or milestones may be included, or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of Six Hundred Dollars ($600) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.

3.4 Standard of Performance: Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, including any required business license, and that such licenses and approvals shall be maintained throughout the term of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.

3.5 Control and Payment of Subordinates; Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City. Any additional personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor's exclusive direction and control.

Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers' compensation insurance.

3.6 City's Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the belowreferenced compensation in accordance with compensation provisions set forth in the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contractor for services performed provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written change orders approved and signed in advance by the City.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein.

On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested

has been done and that the materials listed are stored where indicated. Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments.

3.7.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. However, no progress payments will be made for Work not completed in accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.

3.7.4 Reserved.

3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor's obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (11) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.7.6 Substitutions for Contract Retentions. In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies withheld by the City to ensure performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in California as the escrow agent, and thereafter the City shall then pay such monies to Contractor as they come due. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mean the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the City.

3.7.7 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract. Such transferred title shall in each case be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply

acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract and shall not relieve Contractor of responsibility for any loss of or damage to items.

3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.

3.7.9 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Since the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $25,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at Contractor's principal place of business and at the project site.

Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

3.7.10 Apprenticeable Crafts. If the Total Contract Price exceeds $35,000 and if Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.7.11 Hours of Work. If the Total Contract Price exceeds $25,000, Contractor is advised that eight (8) hours labor constitutes a legal day's work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3.7.12 Payroll Records. If the Total Contract Price exceeds $25,000, Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10

days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated.

The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.7.13 Contractor and Subcontractor Registration. If the Total Contract Price exceeds $25,000, then pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No bid will be accepted nor any contract entered into without proof of the contractor's and subcontractors' current registration with the Department of Industrial Relations to perform public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

3.7.14 Labor Compliance: Stop Orders. If the Total Contract Price exceeds $25,000, Contractor acknowledges that it is aware that this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor's sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor's performance of Work, including any delay, shall be Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City.

Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.8 Performance of Work; Jobsite Obligations.

3.8.1 Water Quality Management and Compliance.

3.8.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code§§ 13000-14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.

3.8.1.2 Compliance with the Statewide Construction General Permit. Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board ("Permit"). It shall be Contractor's sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbance of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a "living document" that changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor's sole responsibility to update the SWPPP as necessary to address conditions at the project site.

3.8.1.3 Other Water Quality Rules Regulations and Policies.

Contractor shall comply with the lawful requirements of any applicable municipality, drainage City, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of The Work. Therefore, the Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.

3.8.1.5 Liability for Non-Compliance. Failure to comply with the Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its officials, officers, employees, volunteers and agents for any alleged violations. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor's failure to comply with the Permit.

3.8.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor's failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for the costs (including the City's attorney's fees) associated with, any settlement reached between the City and the relevant enforcement entity.

3.8.1.7 Training. In addition to the standard of performance requirements set forth in paragraph 3.4, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them without impacting water quality in violation of the laws, regulations and policies described in paragraph 3.8.1. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in paragraph 3.8.1 as they may relate to the Work provided under this

Agreement. Upon request, City will provide the Contractor with a list of training programs that meet the requirements of this paragraph.

3.8.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

3.8.3 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Work. If Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Contract to the same extent as though set forth herein and will be complied with. Contractor shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.8.4 Permits and Licenses. Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, any required business license. While Contractor will not be charged a fee for any City permits, Contractor shall pay the City's business license fee, if any. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.

3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City's review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or

trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.

3.8.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class Ill disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate.

In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.

3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Although CARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by CARS to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARS, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.

3.9 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain.

Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.

3.10 Claims; Government Code Claim Compliance.

3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

3.10.2 Claims. For purposes of this Section, "Claim" means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. Claims governed by this Section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor's request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the City and shall include on its first page the following in 16-point capital font: "THIS IS A CLAIM." Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.

3.10.3 Supporting Documentation. The Contractor shall submit all claims in the following format:

3.10.3.1 Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made

3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other

3.10.3.3 Chronology of events and correspondence

3.10.3.4 Analysis of claim merit

3.10.3.5 Analysis of claim cost

3.10.3.6 Time impact analysis in CPM format

3.10.3.7 If Contractor's claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.

3.10.3.8 Cover letter and certification of validity of the claim, including any claims from subcontractors of any tier, in accordance with Government Code section 12650 et seq.

3.10.4 City's Response. Upon receipt of a claim pursuant to this Section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement.

3.10.4.1 If City needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, City shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

3.10.4.2 Within 30 days of receipt of a claim, City may request in writing additional documentation supporting the claim or relating to defenses or claims City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.

3.10.4.3 City's written response to the claim, as further documented, shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.

3.10.5 Meet and Confer. If the Contractor disputes City's written response, or City fails to respond within the time prescribed, the Contractor may so notify City, in writing, either within 15 days of receipt of City's response or within 15 days of City's failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet and confer conference within 30 days for settlement of the dispute.

3.10.6 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after City issues its written statement. Any disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with City and the Contractor sharing the associated costs equally. City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time.

3.10.6.1 If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.

3.10.6.2 For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

3.10.6.3 Unless otherwise agreed to by City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

3.10.6.4 The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed.

3.10.7 Procedures After Mediation. If following the mediation, the claim or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation.

3.10.8 Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this Section:

3.10.8.1 Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

3.10.8.2 If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.

3.10.8.3 In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does

not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney's fees on appeal of the other party.

3.10.9 Government Code Claims. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. A Government Code claim must be filed no earlier than the date the work is completed or the date the Contractor last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted.

3.10.10 Non-Waiver. City's failure to respond to a claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution of disputed claims.

3.11 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City.

3.12 Indemnification.

3.12.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, "Claims") in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor's services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys' fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City or the City's agents, servants, or independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.

3.12.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City's choosing and at Contractor's own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents

and authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.

3.13 Insurance.

3.13.1 Time for Compliance. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause.

3.13.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Contract. Such insurance shall meet at least the following minimum levels of coverage:

3.13.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 00 01} OR Insurance Services Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Policies shall not contain exclusions contrary to this Contract.

3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence and $4,000,000 aggregate for bodily injury, personal injury and property damage; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation and Employer's Liability: Workers' compensation limits as required by the Labor Code of the State of California.

Employer's Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and each employee bodily injury or disease. Defense costs shall be available in addition to the limits.

Notwithstanding the minimum limits specified herein, any available coverage shall be provided to the parties required to be named as additional insureds pursuant to this Contract.

3.13.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or approved by the City to add the following provisions to the insurance policies:

3.13.3.1 General Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status using ISO endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same coverage, with respect to the Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such work; (2) all policies

shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and {3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor's scheduled underlying coverage.

Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor's insurance and shall not be called upon to contribute with it.

3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor's insurance and shall not be called upon to contribute with it in any way.

3.13.3.3 Workers' Compensation and Employer's Liability Coverage.

The insurer shall agree to waive all rights of subrogation against the City, its officials, employees, agents and authorized volunteers for losses paid under the terms of the insurance policy which arise from work performed by Contractor.

3.13.3.4 All Coverages. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, employees, agents and authorized volunteers.

3.13.4 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its officials, employees, agents and authorized volunteers.

3.13.5 Deductibles and Self-Insurance Retentions. Any deductibles or selfinsured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or selfinsured retentions as respects the City, its officials, employees, agents and authorized volunteers; or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VII, licensed to do business in California, and satisfactory to the City. Exception may be made for the State Compensation Insurance Fund when not specifically rated.

3.13.7 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.13.8 Subcontractors. All subcontractors shall meet the requirements of this Section before commencing Work. Contractor shall furnish separate certificates and endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall name the City, its officials, employees, agents and authorized volunteers as additional insureds using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages for subcontractors shall be subject to all of the requirements stated herein except as otherwise agreed to by the City in writing.

3.13.9 Reporting of Claims. Contractor shall report to the City, in addition to Contractor's insurer, any and all insurance claims submitted by Contractor in connection with the Work under this Contract.

3.14 Bond Requirements.

3.14.1 Payment Bond. If required by law or otherwise specifically requested by City and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.2 Performance Bond. If specifically requested by City and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.3 Bond Provisions. Should, in City's sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.

3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is- later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Work (or work of other contractors) damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective Work. For any Work so corrected, Contractor's obligation hereunder to correct defective Work shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.16 Employee/Labor Certifications.

3.16.1 Contractor's Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose and incorporated herein by reference, shall be executed simultaneously with this Contract.

3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

3.16.3 Verification of Employment Eligibility. By executing this Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and sub-subcontractors to comply with the same.

3.17 General Provisions.

3.17.1 City's Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this

Contract ("City's Representative"). City's Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.

3.17.2 Contractor's Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City ("'Contractor's Representative"). Following approval by the City, Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor's Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor's Representative shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be present at the Work site at all times that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site. Arrangements for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor's Representative, Contractor shall provide the information specified above and obtain the City's written approval.

3.17.3 Termination. This Contract may be terminated by City at any time, either with our without cause, by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may terminate the Contract immediately without notice, may reduce payment to Contractor in the amount necessary to offset City's resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract.

3.17.4 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City, the matter shall be referred to City's Representative, whose decision shall be binding upon Contractor.

3.17.5 Anti-Trust Claims. This provIs1on shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tender final payment to Contractor, without further acknowledgment by the Parties.

3.17.6 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

CONTRACTOR:

Contractor Name
Contractor Address
Contractor Address

Attn: Contact Person
CITY:

Arroyo Grande
300 E. Branch St.,
Arroyo Grande, CA 93420
Attn: Matthew Downing, City Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.17.7 Time of Essence. Time is of the essence in the performance of this Contract.

3.17.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

3.17.9 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

3.17.10 Laws, Venue, and Attorneys' Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Luis Obispo, State of California.

3.17.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.

3.17.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

3.17.13 [Reserved]

3.17.14 Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability

3.17.15 Conflict of Interest. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Contract, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Contract, or obtain any present or anticipated material

benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with the City's Filing Officer as required under state law in the performance of the Work.

3.17.16 Certification of License.

3.17.16.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor's license of the classification indicated below under Contractor's signature.

3.17.16.2 Contractors are required by law to be licensed and regulated by the Contractors' State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O.

Box 26000, Sacramento, California 95826.

3.17.17 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.

3.17.18 Entire Contract: Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.

3.17.19 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.17.20 City's Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project or other projects.

3.17.21 Federal Requirements. Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") will be used to fund all or a portion of this Contract. The Contractor shall comply with all federal requirements including, but not limited to, the following:
• Sections 602 and 603 of the Social Security Act as added by Section 9901 of the American Rescue Plan Act of 2021, U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Fund Award Terms and Conditions, Treasury's Final Rule, and SLFRF reporting requirements, as applicable (collectively, the "SLFRF Compliance Requirements"). The SLFRF Compliance Requirements are expressly incorporated herein by reference.
• 2 C.F.R. Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which is expressly incorporated herein by reference. • Federal Contract Provisions attached hereto as Exhibit "A" and incorporated herein by reference.

Subcontracts, if any, shall contain a provision making them subject to all of the provisions stipulated in the Contract, including but not limited to, SLFRF Compliance Requirements, 2 C.F.R.

Part 200, and the Federal Contract Provisions. With respect to any conflict between such federal requirements and the terms herein and/or the provisions of state law and except as otherwise required under federal law or regulation, the more stringent requirement shall control.

Contractor agrees to accept any additional conditions governing the use of funds from the SLFRF or other funding source as may be required by executive order, federal, state or local statute, ordinance, rule or regulation or by policy announced by the City.

Contractor shall cooperate with City, including providing any necessary documentation and records, in order for City to comply with the federal requirements in Exhibit A.

Contractor will maintain all records pertaining to this Project for a period of five (5) years following completion of the Project
[SIGNATURES ON NEXT PAGE]

SIGNATURE PAGE FOR CONSTRUCTION CONTRACT

BETWEEN THE ARROYO GRANDE
AND [CONTRACTOR]
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the ___ day of ___________, 20___.

ARROYO GRANDE [CONTRACTOR]
By:

Matthew Downing
City Manager
By:

Its:

Printed Name: _
ATTEST:

By:

City Clerk
APPROVED AS TO FORM:

By:

City Attorney

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1
ADDENDUM NO. 1
Date: April 19, 2025
To: All Plan Holders
From: Theresa Wren, Capital Improvement Projects Manager

Subject: RFP Parkside Park Play Structure – Addendum 1
Receipt of this Addendum must be acknowledged by writing “Addendum No. 1” on the outside of the bid envelope.

This addendum forms a part of the Contract Documents and modifies the original plans and/or Special Provisions dated April 7, 2025, as noted herein. This addendum contains the following information:

Add. Item Clarifications / Questions / Answers

1.01 Are there any preferences on play set that will be installed: type, make, model, size, colors? The required Design Elements are discussed in the RFP. There is no type, make, model, or color specified by the City or Parkside development. The primary focus is on the play structures and layout. If multiple color schemes are available for the play structure selected by the Parkside residents, City staff will discuss those options with the selected Contractor.

1.02 Is there a total square footage area for pour in place surfaces, color preferences and thickness requirements?
a. The approximate square footage for the pour in place shown in the RFP was estimated from Google Earth and wheel roller. Contractor is responsible for verifying site conditions. No allowance will be made if Contractor fails to adequately examine a location before submitting a Proposal.
b. There is no color or thickness specified.

1.03 Does the City use CMAS or BuyBoard for purchasing playground equipment? The City belongs to cooperative purchasing entities; however, the Contractor will procure all equipment, components, signage, hardware, manuals, etc., required to complete the project.

1.04 Is there a preference for the pour and play underlayment? There is no preference specified. The current surface under the pour in play surface is compacted aggregate base.

1.05 Are shade structures required?
Shade structures were not specified in the required Design Elements. The Proposer is welcome to include shade structures in their design.

1.06 Are spinners accepted?
Spinners were not specified in the required Design Elements. The Proposer is welcome to include spinners in their design.

1.07 Clarification on Project Area Page 4 of the RFP
The concrete curb between the existing pour in place surface and the dirt trapezoid area is to be sawcut and demolished. Updated Page 4 is attached as Attachment 1.

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1

1.08 Clarification on “swings” in Design Elements, page 2 of RFP. a. In the Design Elements, the “swings” requirement is clarified as a minimum of one swing for older children and one toddler swing.
b. In light of the Design Element to utilize the space more efficiently, a T-swing or other creative configuration could be considered.
c. Tire swings were not specified in the required Design Elements. The Proposer is welcome to include tire swings or other type of swing in their design.

1.09 Clarification on “small playhouse” in Design Elements, page 2 of RFP.

For the small playhouse, the desire is for a playhouse structure used for pretend play that will not trigger the fall zone. No or minimal step up into said playhouse is needed.

1.10 What is the criteria to award the project?
Refer to the RFP Section Evaluation of Proposals on page 10 of the RFP, as well as the clarifications provided in this Addendum No. 1

1.11 Clarification on Evaluation of Proposals, Step 1, page 10 of RFP.

The criteria in Step 1 which read, “Installation within 90 days of Notice to Proceed” is revised to “Contractor’s proposed schedule demonstrates ability to meet the following Milestones:

Milestone 1: Order equipment within 10 working days of Notice to Proceed.

Milestone 2: Equipment delivered within 12 weeks (maximum) of ordering.

Milestone 3: Complete installation within 20 working days.

1.12 Will the City provide a utility site plan?
a. The City does not have utility records for this site. b. Underground Service Alert will be needed to determine location of existing utilities.

1.13 Can Parkside Park be closed during construction/installation? a. Yes, the Contractor shall provide adequate safety measures to close the park to the public for the duration of construction, including the entrance at Bakeman Lane and the pedestrian access on the west side.
b. The Contractor to provide all equipment, components, signage, etc., required to close and secure the park during construction.

1.14 Can the basketball court be used for staging?
a. The Contractor cannot stage or drive heavy equipment on the basketball court. b. The Contractor can make its needs known regarding access to the site and the City will discuss with the Contractor prior to start of construction. Any surfaces, including the basketball court, that equipment must traverse to access the site must be protected and the Contractor will be responsible for any damages.

1.15 Can storage containers be parked on the basketball court or Bakeman Lane? a. The Contractor may choose to stage equipment and/or park a storage container on Bakeman Lane and must apply for a City encroachment permit at no additional cost. b. Storage container or heavy equipment is not permitted on the basketball court. c. Any damages or problems caused by the staging or storage containers will be the Contractor’s responsibility.
d. The City will not provide any storage containers.

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1

1.16 Update to RFP Attachment A, Sample City Agreement, Liquidated Damages.

Section 3.3 which read “Reserved.” is revised as follows:
“Section 3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City. Such schedules or milestones may be included, or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of Six Hundred Dollars ($600) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.”

1.17 Plan Holder List
a. The current plan holder list is attached to this Addendum in Attachment 2.

1.18 Pre-Bid Meeting Sign In Sheet
a. The scanned sign-in sheet for the Non-Mandatory Pre-Bid Meeting (4/15/2025) is attached. See Attachment 3.

1.19 Pre-Bid Meeting Agenda Handout
a. Non-Mandatory Pre-Bid Meeting (4/15/2025) agenda is attached. See Attachment 4.

Addendum 1 Attachments:

1. Updated Project Area, Page 4 of RFP

2. Plan Holders List

3. Pre-Bid Meeting Sign-in Sheet

4. Pre-Bid Meeting Agenda Handout
Please contact Theresa Wren at (805) 473-5441, [email protected], if you have any questions.

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1
Attachment 1 – Updated Project Area

City of Arroyo Grande
RFP: Parkside Park Play Structure
4 Approx. 65’
NTS
Approx. 24’
Approx. 1785 SF of rubber surface to be removed and replaced. New play equipment to be installed.

Sawcut & Demo Concrete Curb between the trapezoid and existing PIP

VICINITY MAP AND PROJECT AREA
Approx. 75 SF of existing dirt. New rubber surface and playhouse to be installed.

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1
Attachment 2 – Planholders List

City of Arroyo Grande
Bid Document Distribution List
Project Title: Project Manager: Project No.: PW 2024-09 Bid Date: April 29, 2025 2:00 pm Account No.350-5567-XXXX
No. Phone Website E-mail Date Add. 1 date
E (800) 479-5314 www.bidnet.com
[email protected]
[email protected]
[email protected]
04/09/25 04/19/25
E (877) 784-9556 www.construction.com [email protected] 04/09/25 04/19/25E (831) 758-1624 www.ccbabuilds.org/ [email protected] 04/09/25 04/19/25E (559) 237-1831 http://cencalbx.com [email protected] 04/09/25 04/19/25E (805) 543-7330 www.slocbe.com [email protected] 04/09/25 04/19/25E (805) 925-1191 www.smvca.org [email protected] 04/09/25 04/19/25E (805) 481-1655 www.blueprintexp.com [email protected] 04/09/25 04/19/25E (877) 761-4347 www.constructconnect.com [email protected] 04/09/25 04/19/25E (949) 336-2729 (820) 667-9440 www.zoomrecreation.com [email protected] [email protected] 04/09/25 04/19/25E (805) 375-1111 www.jaynesbrothers.com [email protected] [email protected] 04/09/25 04/19/25E (805) 846-8122 [email protected] [email protected] 04/09/25 04/19/25E (805) 934-1814 [email protected] 04/09/25 04/19/25E 661-964-7626 www.playandpark.com [email protected] 04/09/25 04/19/25E 435-760-4103 www.gwpark.com [email protected] 04/09/25 04/19/25E 818-661-9181 www.recwest.com [email protected] 04/09/25 04/19/25E 661-249-6642 www.mtzbuildingsolutions.co m [email protected] 04/09/25 04/19/25 H (805) 473-5444 www.arroyogrande.org [email protected] 04/09/25 04/19/25 RFP Parkside Park Playground
1244 North Mariposa StreetFresno CA 93703153 Cross Street, Suite 130San Luis Obispo CA 93401830 Third Avenue, 6th FloorNew York, NY 10022242 East Romie LaneSalinas, CA 9390711622 El Camino Real, Suite 100San Diego, CA 92130 Name/Company Address
Dodge Data & AnalyticsRequired Trade Journal #3Construction Bidboard (BidNet)Required Trade Journal #2Central California Builders ExchangeTrade Journal #19SLO County Builders Exchange (SLO)Trade Journal #22Central Coast Builders AssociationTrade Journal #18Santa Maria Valley Contractors Association 2003 Preisker Lane, Suite ASanta Maria CA 93454618 East Grand AvenueArroyo Grande, CA 93420 BluePrint Express1375 Ash StreetArroyo Grande, CA 93420 ------City Copy (CIP Manager)------ Play and Park (Kathy Wiggins)CMD (now Construct Connect)Trade Journal #1 3825 Edwards Rd., Suite 800 Cincinatti, OH 45209
MTZ Building Solution, Inc. (Scott Baxter)Zoom Recreation (Norma Rojas, Central CA)Jaynes Brothers Construction (Chase Jaynes)Co-Creators, Inc. (David Christensen) jonathanmartinez@mtzbuildingso
lution.com
Central Coast Playgrounds, Inc. (Matt Norris)Great Western Recreation (Tyler KyriopoulosLandscape Structures / Recwest (Nate Stutz) Theresa Wren
300 E. Esplanade Dr. 9th Floor Oxnard, CA 93036

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1
Attachment 3 – Pre-Bid Meeting Sign In Sheet

RFP Parkside Park Play Structure – PW 2024-09
Addendum No. 1
Attachment 4 – Pre-Bid Meeting Agenda Handout

City of Arroyo Grande
Arroyo Grande Public Works
Parkside Park Playground Project (PW 2024-09)
Non-Mandatory Pre-Bid Meeting
Tuesday, April 15, 2025 - 10:00 a.m.

Parkside Park, 484 Bakeman Lane, Arroyo Grande, CA 93420 AGENDA

1. SIGN-INS AND INTRODUCTIONS

2. PROPOSALS DUE
a. Date: Tuesday, April 29, 2025
b. Time: 2:00 p.m.
c. Location: Public Works Administration Building
1375 Ash Street
Arroyo Grande, CA

3. GENERAL WORK DESCRIPTION
a. General
The rubber surfacing within the concrete border around the play structure is beyond repair and needs to be removed and replaced. The existing playground equipment needs to be removed and replaced with playground equipment that meets the requirements outlined below. The City also wants new surfacing, and a playhouse installed in an adjacent area as indicated b. Design Elements
 ADA compliant
 All ages playground
 Utilize the space efficiently. Residents feel there is a lot of wasted space, especially between the existing play structure and existing swings.  Elements preferred include a slide and swings.
 A small playhouse in the trapezoidal area as noted on the vicinity map.  Must meet all national playground safety code requirements  All equipment shall be installed by a factory trained and certified installer. c. Budget $225,000

4. INSTRUCTION TO BIDDERS
a. Basis of Award
Step 1 Evaluation for Responsiveness:
 Inclusion of the requested Design Elements
 Thoroughness and understanding of the tasks to be completed

 Cost within the established budget
 Relevant experience
 Installation within 90 days of Notice to Proceed
Proposals that are deemed unresponsive in Step 1 will not move onto Step 2.

Step 2 Selection by Assessment District Residents:

Designs of the responsive proposals from Step 1 will be presented to the residents of the Parkside Park Assessment District who will be able to cast one vote for their preferred design.
b. Prevailing Wage
Required, see Notice to Bidders
Prime and all subcontractors must be registered with DIR prior to bidding c. Qualifications
Current Licensing
All equipment shall be installed by a factory trained and certified installer.

Relevant Experience
References

5. CONTRACT TIME
a. Time for Completion
Installation with 90 days of Notice to Proceed
Assumed construction start date of July 14, 2025

6. BOND REQUIREMENTS, FORMS, INSURANCE AND GUARANTEES
a. Bonding
Payment Bond (for Labor and Material) – 100 percent of Contract Price Faithful Performance Bond – 100 percent of Contract Price b. Insurance Requirements
Section 7-1.06 of the City’s Standard Specifications and Engineering Standards and is included in the Sample Contract in the RFP.

7. CONSTRUCTION HOURS / ACCESS
a. On-Site Work Hours
Typical: 7:00 am to 5:00 pm (Monday - Friday) excluding City holidays b. Access
Access to the project site is from Bakeman Lane.

8. PUBLIC AWARENESS
a. City will post on City website and social media project information, including contractor contact information, prior to start of construction

b. No parking signs shall be posted (depicting dates and times) and maintained by the Contractor for a minimum period of 72 hours prior to the restrictions becoming effective.

9. CONSTRUCTION STAGING
a. Contractor is to provide a proposed staging area for use during construction prior to commencing mobilization.

10. PROJECT ADMINISTRATION
a. Project Documentation
Submittals, RFIs, meeting agendas and minutes, permits, schedules, and daily logs will be submitted and responded to via email to CIP Manager b. Payment Estimates and Change Orders
Applications for payment and change order can be submitted via email to CIP Manager
c. Certified Payroll
Certified payroll to be submitted to DIR and to CIP Manager (only SSN redacted)
d. Inspection
Inspections to be provided by Cit Engineering Inspector and Playground Inspection contract services

11. QUESTIONS
a. All questions to be submitted in writing by April 18, 2025.

EXHIBIT B

ARROYO GRANDE

CONSTRUCTION CONTRACT
PARKSIDE PARK PLAY STRUCTURE - PW 2024-09

1. PARTIES AND DATE.

This contract ("Contract" or "Contract Documents") is made and entered into this _____ day of _________, 20__ by and between the Arroyo Grande, a public agency of the State of California ("City") and Landscape Structures, Inc., a California Corporation with its principal place of business at P.O. Box 86, Minneapolis, MN 55486 ("Contractor''). City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this Contract.

2. RECITALS.

2.1 City. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction, site work and equipment procurement services required by the City on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced in providing playground installation services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. The following license classifications are required for this Project: A

2.3 Project. City desires to engage Contractor to render such services for the PARKSIDE PARK PLAY STRUCTURE - PW 2024-09, as detailed in the Request for Proposal, Addendum #1 and proposal/quote included herein by reference ("Project") as set forth in this Contract.

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, a performance bond, a payment bond, and all insurance documentation, as required by the Contract.

3. TERMS

3.1 Incorporation of Documents. This Contract and the Contract Documents hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto:
• Plans and Specifications
• Bid and Addenda
• Payment and Performance Bonds
• Bid (Exhibit "B"). Unit prices as corrected by contractor will be used as basis for payment.

3.2 Contractor's Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, for the agreed price. All Work shall be subject to, and performed in accordance with the

above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference.

3.2.1 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in writing by a valid change order executed by the City. Should Contractor request a change order due to unforeseen circumstances affecting the performance of the Work, such request shall be made within five (5) business days of the date such circumstances are discovered or shall waive its right to request a change order due to such circumstances. If the Parties cannot agree on any change in price required by such change in the Work, the City may direct the Contractor to proceed with the performance of the change on a time and materials basis.

3.2.2 Substitutions/"Or Equal". Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words "or equal." Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract.

However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any "or equal" material, process or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of "or equal" requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed "or equal" substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article. The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The City has the complete and sole discretion to determine if a material, process or article is an "or equal" material, process or article that may be substituted. Data required to substantiate requests for substitutions of an "or equal" material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted "or equal" material, process or article is equivalent to that specified in every way except as listed on the affidavit. Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted "or equal" material, process or article, and substantiates that it is an "or equal" to the material, process or article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted "or equal" material, process or article. Failure to submit all the required substantiating data, including the signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the City's costs associated with the review of substitution requests.

Contractor shall be responsible for all costs related to a substituted "or equal" material, process or article. Contractor is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones mutually agreed upon by the City and Contractor. Such schedules or milestones shall be separately documented in writing. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract and if such delay is caused by Contractor’s acts or omissions, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of Two Hundred Dollars ($200) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.

3.4 Standard of Performance: Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, including any required business license, and that such licenses and approvals shall be maintained throughout the term of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.

3.5 Control and Payment of Subordinates; Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City.

Any additional personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers' compensation insurance.

3.6 City's Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the belowreferenced compensation in accordance with compensation provisions set forth in the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contractor for services performed provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written change orders approved and signed in advance by the City.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where indicated. Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments.

3.7.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. However, no progress payments will be made for Work not completed in accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.

3.7.4 Reserved.

3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor's obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (11) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.7.6 Substitutions for Contract Retentions. In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies withheld by the City to ensure performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in California as the escrow agent, and thereafter the City shall then pay such monies to Contractor as they come due. Upon satisfactory completion of the

Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mean the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the City.

3.7.7 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract. Such transferred title shall in each case be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract and shall not relieve Contractor of responsibility for any loss of or damage to items.

3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.

3.7.9 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects.

Since the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $25,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

3.7.10 Apprenticeable Crafts. If the Total Contract Price exceeds $35,000 and if Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.7.11 Hours of Work. If the Total Contract Price exceeds $25,000, Contractor is advised that eight (8) hours labor constitutes a legal day's work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40)

hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3.7.12 Payroll Records. If the Total Contract Price exceeds $25,000, Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section.

Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.7.13 Contractor and Subcontractor Registration. If the Total Contract Price exceeds $25,000, then pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No bid will be accepted nor any contract entered into without proof of the contractor's and subcontractors' current registration with the Department of Industrial Relations to perform public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

3.7.14 Labor Compliance: Stop Orders. If the Total Contract Price exceeds $25,000, Contractor acknowledges that it is aware that this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor's sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor's performance of Work, including any delay, shall be Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City.

Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.8 Performance of Work; Jobsite Obligations.

3.8.1 Water Quality Management and Compliance.

3.8.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code§§ 13000-14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.

3.8.1.2 Compliance with the Statewide Construction General Permit. Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board ("Permit"). It shall be Contractor's sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbance of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a "living document" that changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor's sole responsibility to update the SWPPP as necessary to address conditions at the project site.

3.8.1.3 Other Water Quality Rules Regulations and Policies.

Contractor shall comply with the lawful requirements of any applicable municipality, drainage City, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of The Work. Therefore, the Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.

3.8.1.5 Liability for Non-Compliance. Failure to comply with the Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its officials, officers, employees, volunteers and agents for any alleged violations. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor's failure to comply with the Permit.

3.8.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor's failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for the costs (including the City's attorney's fees) associated with, any settlement reached between the City and the relevant enforcement entity.

3.8.1.7 Training. In addition to the standard of performance requirements set forth in paragraph

3.4, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them without impacting water quality in violation of the laws, regulations and policies described in paragraph 3.8.1.

3.8.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

3.8.3 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law.

Contractor shall be liable for all violations of such laws and regulations in connection with Work. If Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Contract to the same extent as though set forth herein and will be complied with. Contractor shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.8.4 Permits and Licenses. Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, any required business license. While Contractor will not be charged a fee for any City permits, Contractor shall pay the City's business license fee, if any. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.