Agenda packet — Arroyo Grande City Council, July 22, 2025 (part 2 of 3)

EXHIBIT A
BB&K (2023) -13- PROFESSIONAL SERVICES AGREEMENT

3.7.4.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.7.4.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.7.4.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.7.4.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.7.5 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.7.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

Page 181 of 467 ends

EXHIBIT A
BB&K (2023) -14- PROFESSIONAL SERVICES AGREEMENT

3.7.7 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all costs of such action.

3.7.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Luis Obispo County. 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, Consultant 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 Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

3.7.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.7.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.7.12 Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination.

Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.7.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.7.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.7.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit,

Page 182 of 467 ends

EXHIBIT A
BB&K (2023) -15- PROFESSIONAL SERVICES AGREEMENT
privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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

3.7.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.7.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant 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 Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.7.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.7.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.7.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE]

Page 183 of 467 ends

EXHIBIT A
BB&K (2023) -16- PROFESSIONAL SERVICES AGREEMENT

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND
PAVEMENT ENGINEERING, INC.

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

CITY OF ARROYO GRANDE PAVEMENT ENGINEERING, INC.

By:

Its:

Printed Name:

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

Page 184 of 467 ends

EXHIBIT A
BB&K (2020) PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "A"

PREDESIGN PROPOSAL

Page 185 of 467 ends

BB&K (2020) PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "B"

COMPENSATION

Page 186 of 467 ends

EXHIBIT A-A

Page 187 of 467 ends

Page 188 of 467 ends

Page 189 of 467 ends

Page 190 of 467 ends

Page 191 of 467 ends

Page 192 of 467 ends

Page 193 of 467 ends

Page 194 of 467 ends

Page 195 of 467 ends

Page 196 of 467 ends

Page 197 of 467 ends

Page 198 of 467 ends

Page 199 of 467 ends

Page 200 of 467 ends

Page 201 of 467 ends

"Exhibit B"
Compensation

Page 202 of 467 ends

Page 203 of 467 ends

REQUEST FOR PROPOSAL
2025 STREET REPAIRS PROJECT

PREDESIGN
DEADLINE FOR PROPOSALS: JULY 1, 2025
ATTACHMENT 2

Page 204 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 2 | Page
Contents
I. INTRODUCTION .............................................................................................. 2 II. SCOPE OF SERVICES .................................................................................... 2 III. SCHEDULE OF EVENTS ................................................................................. 3 IV. PROPOSAL REQUIREMENTS AND PROCESS ............................................. 4 V. FINAL COMMENTS.......................................................................................... 5 I. INTRODUCTION
The City of Arroyo Grande, California (the “City”) was incorporated as a general law City in 1911 in San Luis Obispo County along the Arroyo Grande Creek. The City covers a

5.45 square mile service area and serves a population of approximately 18,200.

The City maintains over 68 miles of pavement with a current average pavement condition index (PCI) of 57. The City uses Streetsaver® to manage its street inventory and maintenance.

Last year, the City passed measure E – 24, a 1% sales tax measure that will be focused on street and sidewalk maintenance. Following measure passage, City staff developed a pavement program with the goal of maintaining all City streets within the next 13 years and achieving its goal of an average PCI of 70. Information regarding the City’s Pavement Management Program can be found at:
https://www.arroyogrande.org/874/Pavement-Management-Program.

II. SCOPE OF SERVICES
The City is seeking a qualified firm to provide preliminary design services for identified street locations. These preliminary design services include the following:
• Coring and deflection testing for pavement evaluation. • Analyzing evaluation results to identify optimum rehabilitation. • Providing estimated costs based on evaluation.

Task 1 – Project Management/Administration
This work includes a kickoff meeting with City staff and progress meetings at critical stages. The City anticipates 3 meetings total, preferably in-person.

Task 2 – Pavement Evaluation
This work includes deflection testing in general accordance with California Test Method 356 (CTM 356) at 100-foot maximum intervals in each lane with a minimum of 10 tests per lane. Coring is to be performed at 500-foot maximum intervals over the street segment with a minimum of two cores per street segment. The list and maps of streets to

Page 205 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 3 | Page
be evaluated are attached. All are two-lane roads. The approximate length of all streets to be evaluated is 7.2 miles.

Traffic control is required, using a vehicle with mounted warning lights conforming to MUTCD Mobile Operations on a Two – Lane Road.

Task 3 – Cost Estimates
After the pavement evaluation is complete, the consultant is to develop preliminary cost information for each viable option for each street segment and to perform lifecycle cost analysis to assist the City in selecting the most cost-effective and constructable options for the project streets. The City has already evaluated curb ramps and will provide the consultant with locations where curb ramp replacements are required.

City staff is envisioning that all evaluated streets will fall into two categories, one category requiring overlay and the other category requiring full depth reclamation. The two categories of streets will be treated as two separate construction projects, with one project immediately following the other.

Some streets (approximately 2.2 miles) to be considered for inclusion in these construction projects were evaluated in late 2023. Data from those evaluations will be provided to the consultant.

Task 4 – Reports (Deliverables)
The consultant shall deliver the following;

1. Draft report for comment and review.

2. Final report.

All written and electronic documents, including but not limited to data compilations, studies, and reports which are prepared in the performance of this Project, shall remain the property of City of Arroyo Grande and will be delivered before final payment to the consultant.

III. SCHEDULE OF EVENTS
The following are the anticipated schedule of events for this project:
 Issue RFP .......................................................................... Friday, June 13, 2025  Questions Due ................................................................... Friday, June 20, 2025  Proposals due to the City by 4:00 p.m. .............................. Tuesday, July 1, 2025  Consultant Ranking and Selection ................................... Thursday, July 3, 2025  Finalize Contract Negotiations ..................................... Wednesday, July 9, 2025  City Council Awards Contract .......................................... Tuesday, July 22, 2025

Page 206 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 4 | Page
IV. PROPOSAL REQUIREMENTS AND PROCESS
A. FORM AND CONTENT OF TECHNICAL PROPOSAL
The Proposal shall be limited to 8 pages, with the exception of resumes and project lists, and include as a minimum the following:

1. Scope of Services
• Present your understanding and Scope of Services for the project.

2. Schedule
• Include a performance schedule for each stage of the project detailing the length of time for completion of each task as defined in the Scope of Services.
• Include milestone dates and processing time for review by the City.

3. Personnel
• Identify and define the experience of the Project Manager and provide their individual resume. The designated Project Manager shall be the primary contact with the City during the contract period and shall function in that capacity while employed by the firm.
• Identify the individual(s) responsible for each service, or subconsultant, and provide their individual resume(s).

4. References
• Provide three municipal references for projects of similar scope and nature performed within the last five years.
• List the client’s name, address, and a description of the tasks performed. Include the name and telephone number of the client’s key contact on the project.

5. Cost Summary
• Identify the proposed basis for fees and charges as appropriate with hourly rates of individuals that could be assigned. The fee will be submitted in a format to include a separate cost of each of the tasks and sub-tasks listed above. The actual fee will be negotiated after selection of the successful applicant. The City also reserves the right to eliminate individual tasks or sub-tasks due to budgetary constraints.

6. Signature
• The proposal shall be signed by an official authorized to bind the firm and shall contain a statement to the effect that the proposal is valid for ninety (90) days.

Page 207 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 5 | Page

7. Submittal Requirements
Three copies of the complete proposal shall be submitted in a sealed envelope with the firm’s name printed on the outside clearly marked with the words “Proposal for 2025 Street Repair Project Predesign”. Proposals received after the deadline will not be considered. Hand deliver or mail the proposal to ensure receipt on or before 4:00 PM, Tuesday, July 1, 2025, to:

City of Arroyo Grande, Attn: Shannon Sweeney, City Engineer 1375 Ash Street
Arroyo Grande, CA 93420
B. REQUESTS FOR INFORMATION
The selected consultant shall formally submit clarifications or requests for additional documentation via email to [email protected] by June 20, 2025. Requests for information submitted after June 20, 2025, will not be answered. The City shall provide a written response to all known potential consultants within five (5) working days.

C. SELECTION PROCESS AND EVALUATION CRITERIA
Each proposal will be reviewed by a Selection Committee to determine if the minimum proposal requirements are met. The City of Arroyo Grande may reject any proposal that fails to meet the requirements set forth in this RFP. Proposals meeting the RFP requirements will be evaluated and ranked by the Selection Committee utilizing the following criteria:
• Understanding of the work to be performed
• Experience with similar assignments
• Assigned Project Manager/team
• Ability to complete the project on schedule
• Overall value to the City
V. FINAL COMMENTS
The City reserves the right to reject any and all proposals, cancel all or part of this RFP, waive any minor irregularities and to request additional information from proposing consultants. By requesting proposals, the City is in no way obligated to award a contract or pay expenses of the proposing consultants in connection with the preparation or submission of a proposal.

The decision to award a contract will be based many factors including but not limited to service, cost, experience, and innovation. No single factor, such as cost, will determine the final decision to award.

We appreciate the efforts all the consultants and their respective staffs have put forth in responding to the Request for Proposal.

Page 208 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 6 | Page
ATTACHMENT A – STREETS TO BE EVALUATED
Deflection testing to determine treatment needed: Length, feet
Huasna Road, Corbett Canyon to Pearwood
4,190
Corral Place, Corbett Canyon (Cul de Sac)
660
Vard Loomis Lane, Huasna Road (Cul-de-Sac)
800
Ikeda Way, Huasna Road to Vard Loomis Lane
470
Vard Loomis Court, Vard Loomis Lane (Cul-de-Sac)
145
Callie Court, Huasna Road (Cul-de-Sac)
235
Branch Mill Road, E Cherry to first culvert
620
Via Berros, Valley Road to City Limit
455
Tiger Tail Drive, Valley Rd (Cul-De-Sac)
915
Mesa Drive, Tiger Tail Drive (Cul-De-Sac)
1,020
Bambi Court, Tiger Tail Drive (Cul-de-Sac)
400
Corbett Canyon, Huasna to 227
3,930
Linda Drive, Oceanview School to N. Elm St
180
Newport Avenue Frontage, Courtland St South of Newport
1,030
Newport Avenue, Courtland St to Montego Street
1,080
Courtland, Newport to Brighton
550
Chilton Avenue, Oak Park Boulevard to Robles Road
1,500
Hillcrest Drive,Montego to ECR
1,244
Sierra Drive, Oak Park Boulevard to Hillcrest Drive
2,187
Linda Drive, Brisco Road to Montego Street
950
Rodeo Drive, West Branch to James Way
5,560

Page 209 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 7 | Page
Rena, Dodson Way to E Grand Avenue
1,280
Trinity Avenue, Traffic Way to end of street
850
PC Railway Place, Allen Street to end
335
Cross Street, Ide Street to Allen Street
660
Short Street, Poole Street to Nelson Street
470
Hawkins Court, Cross Street (Cul-De-Sac)
133
Vernon Street, W Branch to end
470
Wesley Street, E Branch to end
350
Sandalwood Ave, Alder Street to Halcyon Road (South)
580
Cameron Ct, Alder Street to Halcyon Road (South)
562
Alder St, Farroll Avenue to Cameron Court
690
Wood Place, Dodson
650
Eman Ct, Alpine St

480
Newman Dr, Alpine St

560
Cerro Vista Ln, Alpine St to Cerro Vista Cir

550
Taylor Pl, Alpine St

657
Cerro Vista Cir, Cerro Vista Lane to Gate

715
Total feet

38,113
Total miles

7.22

Page 210 of 467 ends

Page 211 of 467 ends

Page 212 of 467 ends

Page 213 of 467 ends

Page 214 of 467 ends

Page 215 of 467 ends

Page 216 of 467 ends

Page 217 of 467 ends

Page 218 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 16 | Page

ATTACHMENT B - SAMPLE CITY CONTRACT

CITY OF ARROYO GRANDE

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 20___, by and between the City of Arroyo Grande, a municipal corporation organized under the laws of the State of California with its principal place of business at 300 E. Branch Street, Arroyo Grande, California 93420, County of San Luis Obispo, State of California ("City") and [***INSERT NAME OF COMPANY], a [INSERT TYPE OF BUSINESS; I.E.,

CORPORATION (INCLUDE STATE OF INCORPORATION), LIMITED LIABILITY COMPANY, SOLE PROPRIETORSHIP, ETC.***], with its principal place of business at [***INSERT ADDRESS***] ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing [***INSERT TYPE***] services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional services for the [***INSERT NAME OF PROJECT, AND CONTRACT NUMBER, IF APPLICABLE***] project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional [***INSERT TYPE***] consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from [***INSERT DATE***] to [***INSERT DATE***], unless earlier terminated as provided herein. [***INSERT THE

FOLLOWING SENTENCE FOR MULTI-YEAR, AUTOMATIC RENEWAL NOT TO EXCEED THREE CONSECUTIVE YEARS; OTHERWISE, ALWAYS DELETE: The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than

Page 219 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 17 | Page
[INSERT NUMBER] additional one-year terms.***] Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Compensation.

3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed [***INSERT AMOUNT WRITTEN OUT] ($[***INSERT NUMBER]) without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.2.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant.

The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

3.2.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3 Responsibilities of Consultant.

3.3.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control.

Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding,

Page 220 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 18 | Page
unemployment insurance, disability insurance, and workers' compensation insurance.

3.3.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.3.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.3.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: [***INSERT NAME AND TITLE***].

3.3.5 City's Representative. The City hereby designates [***INSERT NAME AND TITLE***], or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.3.6 Consultant's Representative. Consultant hereby designates [***INSERT NAME AND TITLE***], or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement.

The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.3.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

Page 221 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 19 | Page
them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.3.9 Period of Performance.

3.3.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.3.9.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

3.3.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.3.10 Laws and Regulations; Employee/Labor Certification.

Page 222 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 20 | Page

3.3.10.1 Compliance with Laws. Consultant 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 Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

3.3.10.2 Employment Eligibility; Consultant. Consultant certifies 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 subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.3.10.3 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 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. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.3.10.4 Air Quality. To the extent applicable, Consultant 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 South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.

3.3.10.5 Water Quality Management and Compliance. Consultant 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 Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.

City may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.

Page 223 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 21 | Page

3.3.10.6 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant 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.

3.3.11 Insurance.

3.3.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant 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 Agreement for cause.

3.3.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General
Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence.
(C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): [***INCLUDE ONLY IF APPLICABLE; DELETE OTHERWISE***]Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing,

Page 224 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 22 | Page
underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

3.3.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement. Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for nonpayment of premium. (B) Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for nonpayment of premium. (C) Professional Liability (Errors & Omissions): [***INCLUDE ONLY IF APPLICABLE; DELETE OTHERWISE***](1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for nonpayment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. (D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.3.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.3.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of

Page 225 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 23 | Page
subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.3.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.3.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.3.11.9 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.3.11.10 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

Page 226 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 24 | Page
(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(C) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(F) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.3.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

3.4 Labor Code Requirements.

Page 227 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 25 | Page
effect at the commencement of this Agreement. Consultant 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 the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.

3.4.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant 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 DIR against Consultant or any subconsultant.

3.4.4 Labor Certification. By its signature hereunder, Consultant certifies that it 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 selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

Page 228 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 26 | Page
performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.6 Indemnification.

3.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.7 General Provisions.

3.7.1 Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.7.2 Independent Contractors and Subcontracting.

Page 229 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 27 | Page
approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.

3.7.2.2 Prior Approval Required. Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor’s use of further independent contractors, subcontractors or subconsultants without the City’s prior written consent.

3.7.3 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: [***INSERT BUSINESS NAME***]
[***INSERT STREET ADDRESS***]
[***INSERT CITY STATE ZIP***]
ATTN: [***INSERT NAME AND TITLE***]
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
ATTN: Shane Taylor, Utilities Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.7.4 Ownership of Materials and Confidentiality.

Page 230 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 28 | Page
this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or

Page 231 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 29 | Page
the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.7.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

3.7.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.7.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and

Page 232 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 30 | Page
subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.7.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.7.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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

3.7.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

Page 233 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 31 | Page

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND
[***INSERT NAME***]
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF ARROYO GRANDE [INSERT NAME OF CONSULTANT]
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:

Approved By:

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

Jessica Matson
City Clerk

Page 234 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 BB&K (2020) Exhibit “A”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "A"

SCOPE OF SERVICES
[***INSERT SCOPE***]

Page 235 of 467 ends

Request for Proposal – 2025 Street Repair Project Predesign June 2025 BB&K (2020) Exhibit “B”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "B"

SCHEDULE OF SERVICES
[***INSERT SCHEDULE***]

Page 236 of 467 ends

EXHIBIT "C"

COMPENSATION
[***INSERT RATES & AUTHORIZED REIMBURSABLE EXPENSES***]

Page 237 of 467 ends

RFP 2025 Street Repairs Pre-Design – PW 2025-01 Addendum No. 1 ADDENDUM NO. 1
Date: June 25, 2025
To: All Plan Holders
From: Theresa Wren, Capital Improvement Projects Manager Subject: 2025 Street Repairs Pre-Design – Addendum 1
Receipt of this Addendum must be acknowledged by signing and submitting Addendum No. 1 with your proposal.

This addendum forms a part of the Contract Documents and modifies the original plans and/or Special Provisions dated June 13, 2025, as noted herein. This addendum contains the following information:

Add. Item Clarifications / Questions / Answers

1.01 Can we receive the full pavement management plan report that was referenced? Yes. Here’s the link: https://arroyogrande.org/DocumentCenter/View/13645/2022-04-22---2022- PMP-Update---FINAL

1.02 Will the consultant who prepared the pavement management plan report be eligible to submit on this design level RFP?
Yes. Please note, however, that this is more of a study level RFP than a design level RFP.

1.03 The RFP provides a map and a list summarizing the street segments to be evaluated for the project. There are a couple of discrepancies between the map and street list. For example, the map shows the following streets but they are not on the list of streets:
• Montego Street – Linda Drive to Hillcrest Drive
• Hillcrest Drive – Montego Street to Sierra Drive
• Robels Road – Chilton Street to El Camino Real
• S. Traffic Way – Traffic Way to Trinity Avenue
• Village Court – Trinity Avenue to End
• Woodland Drive – Fair Oaks Avenue to Gate
Additionally, the map shows PC Railway Place from Cherry Avenue to Allen Street but the list shows PC Railway Place from Allen Street to the End.

Our question is, when there are discrepancies, does the map or list govern? The list has been updated in “Revised Attachment A - Streets to be Evaluated” so that both contain all relevant locations. If any additional discrepancies exist, the list will govern.

1.04 Will the City entertain increasing the page limit, say to 12? Yes.

Page 238 of 467 ends

RFP 2025 Street Repairs Pre-Design – PW 2025-01 Addendum No. 1

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

Addendum 1 Attachments:

1. Revised Attachment A

2. Plan Holders List
Please contact Theresa Wren at (805) 473-5441, [email protected], if you have any questions.

Contractor shall sign this Addendum No. 1 to acknowledge receipt of the Addendum and enclose the signed copy of this Addendum with the bid. Proposals submitted without the signed Addendum may be rejected. ______________ ___________________ Contractor’s Signature Date

Page 239 of 467 ends

RFP 2025 Street Repairs Pre-Design – PW 2025-01 Addendum No. 1 Revised Attachment A – Streets to be Evaluated
Deflection testing to determine treatment needed: Length (LF) Huasna Road, Corbett Canyon to Pearwood
4,190
Corral Place, Corbett Canyon (Cul de Sac)
660
Vard Loomis Lane, Huasna Road (Cul-de-Sac)
800
Ikeda Way, Huasna Road to Vard Loomis Lane
470
Vard Loomis Court Vard Loomis Lane (Cul-de-Sac)
145
Callie Court, Huasna Road (Cul-de-Sac)
235
Branch Mill Road, E Cherry to first culvert
620
Via Berros, Valley Road to City Limit
455
Tiger Tail Drive, Valley Rd
915
Mesa Drive, Tiger Tail Drive (Cul-De-Sac)
1,020
Bambi Court, Tiger Tail Drive (Cul-de-Sac)
400
Corbett Canyon, Huasna to 227
3,930
Linda Drive, Oceanview School to N. Elm St
180
Newport Avenue Frontage, Courtland St South of Newport
1,030
Newport Avenue, Courtland St to Montego Street
1,080
Courtland, Newport to Brighton
550
Chilton Avenue, Oak Park Boulevard to Robles Road
1,500
Hillcrest Drive,Montego to ECR
1,244
Sierra Drive, Oak Park Boulevard to Hillcrest Drive
2,187
Linda Drive, Brisco Road to Montego Street
950
Rodeo Drive, West Branch to James Way
5,560
Rena, Dodson Way to E Grand Avenue
1,280
Trinity Avenue, Traffic Way to end of street
850

Page 240 of 467 ends

RFP 2025 Street Repairs Pre-Design – PW 2025-01 Addendum No. 1 PC Railway Place, Allen Street to Cherry
340 LEGEND
Cross Street, Ide Street to Allen Street
660 Revised per Addendum No. 1
Short Street, Poole Street to Nelson Street
470
Hawkins Court, Cross Street (Cul-De-Sac)
133
Vernon Street, W Branch to end
470
Wesley Street, E Branch to end
350
Sandalwood Ave, Alder Street to Halcyon Road (South)
580
Cameron Ct, Alder Street to Halcyon Road (South)
562
Alder St, Farroll Avenue to Cameron Court
690
Wood Place, Dodson
650
Eman Ct, Alpine St

480
Newman Dr, Alpine St

560
Cerro Vista Ln, Alpine St to Cerro Vista Cir

550
Taylor Pl, Alpine St

657
Cerro Vista Cir, Cerro Vista Lane to Gate

715
Montego St., Linda Dr to Hillcrest Dr

1,080
Hillcrest Dr., Montego to Sierra Dr.

1,930
Robles Rd., Chilton to ECR

325
S. Traffic Way - Traffic Way to Trinity Ave.

750
Village Ct - Trinity to End

215
Woodland Dr. - Fair Oaks to Gate

336

TOTAL (LF)

42,754

TOTAL (MILES)

8.10

Page 241 of 467 ends

RFP 2025 Street Repairs Pre-Design – PW 2025-01 Addendum No. 1 Attachment 2 – Planholders List

Page 242 of 467 ends

City of Arroyo Grande
Bid Document Distribution List
Project Title: Project Manager: Theresa Wren
Project No.: PW 2025-01 Bid Date: July 1, 2025
Account No.350-5638-7701 4:00 pm
No. Phone Website e-mail Date Add. 1 date
E (800) 479-5314 www.bidnet.com
[email protected]
[email protected]
[email protected]
06/13/25 06/25/25
E (877) 784-9556 www.construction.com [email protected] 06/13/25 06/25/25E (831) 758-1624 www.ccbabuilds.org/ [email protected] 06/13/25 06/25/25E (559) 237-1831 http://cencalbx.com [email protected] 06/13/25 06/25/25E (805) 543-7330 www.slocbe.com [email protected] 06/13/25 06/25/25E (805) 925-1191 www.smvca.org [email protected] 06/13/25 06/25/25E (805) 481-1655 www.blueprintexp.com [email protected] 06/13/25 06/25/25 E (800) 424-3996 www.cmdgroup.com [email protected] 06/13/25 06/25/25 H (805) 473-5444 www.arroyogrande.org [email protected] 06/13/25 06/25/25 E (805) 781-2265 www.pavementengineering. com [email protected]; [email protected] 06/13/25 06/25/25E (714) 546-3468 [email protected] [email protected] 06/13/25 06/25/25E (657) 275-3018 www.ncenet.com [email protected]; [email protected] 06/13/25 06/25/25E (949) 300-2158 www.GMUgeo.com
[email protected];
[email protected] 06/13/25 06/25/25
E (866) 692-8335 www.g3quality.com [email protected] 06/13/25 06/25/25 BluePrint Express
1375 Ash StreetArroyo Grande, CA 93420 ------City Copy (CIP Manager)------ CMD (Construction Market Data)Trade Journal #1
2700 S. Grand Avenue Santa Ana, CA 927053485 Sacramento Drive, Ste A San Luis Obispo, C A 934012003 Preisker Lane, Suite ASanta Maria CA 9345413850 Cerritos Corporate Dr. Ste E Cerritos, CA 9070330 Technology Parkway South, Suite 100, Norcross, GA 30092618 East Grand AvenueArroyo Grande, CA 934202300 E. Katella Avenue, Ste. 125 Anaheim, CA 9280630336 Esperance the Rancho Santa Margarita, CA 92688 2025 Street Repair Predesign
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 #22G3 QualityCentral Coast Builders AssociationTrade Journal #18Santa Maria Valley Contractors AssociationGMU EngineersRoger SchlierkampNCEGabrielle TrinhLaBelle MarvinJohn WarrickPEIJoe Ririe

Page 243 of 467 ends

Item PEI DPSI Labelle Marvin Earth
Mechanics
Task 1 - Project Management /
Administration $ 5,760.00 $ 4,340.00
Task 2 - Pavement Evaluation $ 115,090.00 $ 238,109.00
Task 3 - Cost Estimates $ 9,960.00 $ 7,040.00
Task 4 - Reports (Deliverables) $ 7,740.00 $ 23,280.00
Total $ 138,550.00 $ 272,769.00 $ 211,615.00 $ 276,474.00 Committee Review PEI DPSI Labelle Marvin Earth
Mechanics
Reviewer 1 Ranking: 1423
Reviewer 2 Ranking: 1324
Predesign of 2025 Streets Repair Project - Proposal Review Did not break
down bid per
Tasks as
directed in RFP
Did not break
down bid per
Tasks as
directed in RFP
ATTACHMENT 3

Page 244 of 467 ends

Item 9.j.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Fourth Revision to the Sewer System Management Plan DATE: July 22, 2025
RECOMMENDATION:
1) Adopt a Resolution approving Revision 4 of the Sewer System Management Plan (SSMP);
2) Authorize the Director of Public Works to certify the completion of the SSMP to the State Water Resource Control Board (SWRCB); and
3) Make findings that approving the Sewer System Management Plan revision is not a project subject to the California Environmental Quality Act (“CEQA”) in accordance with Sections 15301, 15302, 15308 and 15378(b)(5) of the (CEQA) Guidelines.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

A total of $50,000 was budgeted in the Sewer Fund within Fiscal Year 2024-25 budget to formulate and implement the Sewer System Management Plan (SSMP) Revision 4.

Approximately 80 staff hours will be required this Fiscal Year to administer the plan.

BACKGROUND:

The City, also known as an “Enrollee” prepared an initial wastewater system plan titled the “Collection System Management Plan” in 2006 to comply with requirements of the Central Coast Regional Water Quality Control Board (RWQCB) pursuant to Section 13267 of the California Water Code.

The current SSMP is the third revision to the initial Collection System Management Plan.

The State Water Resources Control Board renamed these plans as Sewer System Management Plans in 2013, the City’s SSMP was approved by the City Council on October 14, 2014, and the plan was audited in 2016 and 2018. The plan was updated in 2019 and 2023. The proposed SSMP Rev. 4 meets the requirements of the 2022 General Order. Through the 2022 Order, the State Water Board requires an Enrollee to:

Page 245 of 467 ends

Item 9.j.

City Council
Fourth Revision to the Sewer System Management Plan
July 22, 2025

Page 2 ends

 Comply with federal and state prohibitions of discharge of sewage to waters of the State, including federal waters of the United States.
 Comply with specifications, notification, monitoring, reporting, and recordkeeping requirements in the 2022 Order that implement the federal Clean Water Act, the California Water Code, water quality control plans (including Regional Water Board Basin Plans), and policies.
 Proactively operate and maintain resilient sanitary sewer systems to prevent spills.  Eliminate discharges of sewage to waters of the State through effective implementation of a Sewer System Management Plan.
 Monitor, track, and analyze spills for ongoing system-specific performance improvements; and,
 Report noncompliance with this General Order per reporting requirements.

ANALYSIS OF ISSUES:

In coordination with City staff, Wallace Group, the City’s consultant, successfully achieved compliance with the 2022 Order.

The SSMP Rev. 4 documents the City’s Sanitary Sewer System, defines the City’s goals for improving its sewer system infrastructure, and establishes an implementation plan and schedule for achieving these goals.

The main goals of the SSMP Rev. 4 are:
 Be available and responsive to the needs of the public, and work cooperatively with local, state, and federal agencies to reduce, mitigate, properly report, and respond to Spills.
 Properly manage and maintain the City of Arroyo Grande public sewer system lines to minimize Spills.
 Identify, prioritize, and continuously renew and replace sewer system lines to maintain reliability.
 Implement regular, proactive maintenance of the sewer system to remove roots, debris, sand, and Fats, Oils, and Grease (FOG) in areas prone to blockages that may cause Spills or sewer backups.

There are eleven (11) elements of the SSMP Rev. 4:

1. Goals, Regulatory Context, Asset Overview and Schedule

2. Organization

3. Legal Authority

4. Sewer System Management Plan Operations and Maintenance Program

5. Design and Performance Provisions

6. Spill Emergency Response Plan

7. Sewer Pipe Blockage Control Program

Page 246 of 467 ends

Item 9.j.

City Council
Fourth Revision to the Sewer System Management Plan
July 22, 2025

Page 3 ends

8. System Evaluation, Capacity Assurance and Capital Improvement Plan

9. Monitoring, Measurement, and Program Modification

10.Sewer System Management Plan Program Audits

11.Communication Program
To continue compliance with the discharge order, a revised SSMP Rev. 4 was prepared to meet the new requirements, which is mainly the development of Element 6, a new Sanitary Sewer Spill Emergency Response Plan (SERP). The SERP addresses issues such as spill response, detection, mitigation, clean-up, investigation, documentation, and reporting. To achieve full compliance, the City also developed contingency data for each sewer lift station that provides location and pipeline location information in the event of an emergency.

SSMP Rev. 4, after approval by the City Council, is required to be submitted to the SWRCB. The SWRCB does not review the document for compliance, but can audit and perform inspections if a sewage spill emergency occurs.

The City has been operating the Sanitary Sewer System within the guidelines of the current SSMP. The revised SSMP Rev. 4 meets the current discharge 2022 Order.

ALTERNATIVES:

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

1. Adopt the Resolution approving the Fourth Revision to the SSMP;

2. Modify the Fourth Revision to the SSMP and adopt the Resolution;

3. Do not adopt the Resolution approving the Fourth Revision to the SSMP, which may result in non-compliance with the 2022 Order; or

4. Provide other direction to staff.

ADVANTAGES:

Approval of the SSMP Rev.4 ensures compliance with the State certification as determined by the 2022 Order.

DISADVANTAGES:

None have been identified.

ENVIRONMENTAL REVIEW:

Sewer System Management Plans are primarily plans for the operations and maintenance of existing sewer systems. The action to adopt this SSMP Rev. 4 is exempt from the California Environmental Quality Act (“CEQA”, Public Resources Code §2100 at seq.) because it is an action taken by a regulatory agency to assure the protection of the environment and the regulatory process involves procedures for the protection of the environment. (CEQA Guidelines §15308; §15378(b)(5)). In addition, the action to adopt this SSMP Rev. 4 is exempt pursuant to CEQA §15301 and 15302 to the extent that it

Page 247 of 467 ends

Item 9.j.

City Council
Fourth Revision to the Sewer System Management Plan
July 22, 2025

Page 4 ends

applies to existing sanitary sewer collection systems for their operation and maintenance with negligible or no expansion of use, and to the extent that it results in the repair or replacement of existing systems involving negligible or no expansion of capacity.

None of the exceptions to the categorical exemptions set forth in State CEQA Guidelines section 15300.2 have any applicability here. The SSMP Rev. 4 will not impact any environmental resource of hazardous or critical concern, will not result in significant cumulative impacts, is not subject to any unusual circumstances that could result in a significant environmental impact, would not damage any scenic resources within a scenic highway, is not located on a hazardous waste site identified on any list compiled pursuant to Government Code section 65962.5 and would not impact any historical resource.

For all of the foregoing reasons, the entirety of the SSMP Rev. 4 is categorically exempt from CEQA.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution including Exhibit A - Sewer System Management Plan Revision 4

Page 248 of 467 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADOPTING REVISION 4 OF THE

SEWER SYSTEM MANAGEMENT PLAN
WHEREAS, the City of Arroyo Grande maintains a municipal sewer system for furnishing sewer service to sewer users in the City of Arroyo Grande; and WHEREAS, the State Water Resources Control Board adopted Statewide General Waste Discharge Requirements for publicly owned sanitary sewer systems, Order No. 2006-0003-DWQ, requiring the development and implementation of a system-specific local Collection System Management Plan that documents a comprehensive program for sewer system operation, maintenance and repair; and WHEREAS, the State Water Resources Control Board revised the name of the Collection System Management Plans to Sewer System Management Plans (SSMP) in 2013; and
WHEREAS, the City Council approved the City’s first SSMP on August 11, 2009 which was updated in 2014, 2019 and 2023; and
WHEREAS, the State Water Resources Control Board issued an updated general order under General Order 2022-0103-DWQ in December 6, 2022 (Order); and WHEREAS, the Order requires owners of sanitary sewer systems to develop and implement a system-specific SSMP; and
WHEREAS, the SSMP must include provisions to provide proper and efficient management, operation, and maintenance of sanitary sewer systems, and must contain a spill emergency response plan that establishes standard procedures for immediate response to an sanitary sewer overflow in a manner designed to minimize water quality impacts and potential nuisance conditions; and
WHEREAS, the SSMP shall be updated every six years and internally audited every 3 years; and
WHEREAS, the City currently owns, operates, and maintains a sewer collection system and is subject to the Order; and
WHEREAS, the City did prepare an updated SSMP compliant with the Order; and WHEREAS, the 2025 SSMP includes significant updates and therefore must be approved by the City Council for re-certification with the State Water Resources Control Board.

Page 249 of 467 ends

RESOLUTION NO.

PAGE 2
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande, finds as follows:
a) The City Council finds the facts, findings and conclusions set forth above are true and correct.
b) That the Sewer System Management Plan (Exhibit A) complies with General Order 2022-0103-DWQ and the updated SSMP is hereby approved and adopted.
c) The adoption of the Sewer System Management Plan is catergorically except from CEQA under sections 15301, 15302, 15308 and 15378(b)(5) of the CEQA Guidlines.
d) The City Council authorizes the Director of Public Works to certify the completion of the SSMP to the State Water Resources Control Board and submit this certification to the State Water Resources Control Board. e) The City Clerk shall certify as to the adoption of this Resolution.

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 22 nd day of July, 2025.

Page 250 of 467 ends

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

Page 251 of 467 ends

Exhibit A

Page 252 of 467 ends

Page 253 of 467 ends

Page 254 of 467 ends

Page 255 of 467 ends

Page 256 of 467 ends

Page 257 of 467 ends

Page 258 of 467 ends

Page 259 of 467 ends

Page 260 of 467 ends

Page 261 of 467 ends

Page 262 of 467 ends

Page 263 of 467 ends

Page 264 of 467 ends

Page 265 of 467 ends

Page 266 of 467 ends

Page 267 of 467 ends

Page 268 of 467 ends

Page 269 of 467 ends

Page 270 of 467 ends

Page 271 of 467 ends

Page 272 of 467 ends

Page 273 of 467 ends

Page 274 of 467 ends

Page 275 of 467 ends

Page 276 of 467 ends

Page 277 of 467 ends

Page 278 of 467 ends

Page 279 of 467 ends

Page 280 of 467 ends

Page 281 of 467 ends

Page 282 of 467 ends

Page 283 of 467 ends

Page 284 of 467 ends

Page 285 of 467 ends

Page 286 of 467 ends

Page 287 of 467 ends

Page 288 of 467 ends

Page 289 of 467 ends

Page 290 of 467 ends

Page 291 of 467 ends

Page 292 of 467 ends

Page 293 of 467 ends

Page 294 of 467 ends

Page 295 of 467 ends

Page 296 of 467 ends

Page 297 of 467 ends

Page 298 of 467 ends

Page 299 of 467 ends

Page 300 of 467 ends

Page 301 of 467 ends

Page 302 of 467 ends

Page 303 of 467 ends

Page 304 of 467 ends

Page 305 of 467 ends

Page 306 of 467 ends

Page 307 of 467 ends

Page 308 of 467 ends

Page 309 of 467 ends

Page 310 of 467 ends

Page 311 of 467 ends

Page 312 of 467 ends

Page 313 of 467 ends

Page 314 of 467 ends

Page 315 of 467 ends

Page 316 of 467 ends

Page 317 of 467 ends

Page 318 of 467 ends

Page 319 of 467 ends

Page 320 of 467 ends

Page 321 of 467 ends

Page 322 of 467 ends

Page 323 of 467 ends

Page 324 of 467 ends

Page 325 of 467 ends

Page 326 of 467 ends

Page 327 of 467 ends

Page 328 of 467 ends

Page 329 of 467 ends

Page 330 of 467 ends

Page 331 of 467 ends

Page 332 of 467 ends

Page 333 of 467 ends

Page 334 of 467 ends

Page 335 of 467 ends

Page 336 of 467 ends

Page 337 of 467 ends

Page 338 of 467 ends

Page 339 of 467 ends

Page 340 of 467 ends

Page 341 of 467 ends

Page 342 of 467 ends

Page 343 of 467 ends

Page 344 of 467 ends

Page 345 of 467 ends

Page 346 of 467 ends

Page 347 of 467 ends

Page 348 of 467 ends

Item 9.k.

MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Monthly Water Supply and Demand Update
DATE: July 22, 2025
RECOMMENDATION:

Receive and file the Monthly Water Supply and Demand Update.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Approximately two (2) hours of staff time are required to prepare the report.

BACKGROUND:

The City of Arroyo Grande’s water entitlements are calculated on a water year that began April 1, 2025. The current water supply for water 2025/2026 includes.  2,290 Acre Feet (AF) from Lopez Lake Reservoir/Lopez contract entitlement.  The current modeled, safe yield is 357 AF of groundwater from the Santa Maria River Groundwater Basin, with an entitlement of 1,323 AF.  An additional 160 AF of groundwater is available from the Pismo formation from the existing City well system.

In addition to the annual Lopez Lake Reservoir contract entitlement, the City will have 689.69 AF of stored Lopez water, which is unused entitlement from water year 2024/2025.

The City also accepted an offer to purchase 470.33 AF of surplus Lopez water. The surplus water cost is $55,146.74 or $117.14 per Acre Feet (AF).

The total supply from Lopez Lake Reservoir for this water year is 3,450 AF. The predicted water use for the 2025/2026 water year is 2,200 AF. The monthly water use for the City in June was 190.7 AF.

The supply of the additional 1,160.02 AF of Lopez water will be used first to prevent losing it due to a potential 100% capacity Lopez Lake Reservoir spill over that occurred in 2023

Page 349 of 467 ends

Item 9.k.

City Council
Monthly Water Supply and Demand Update
July 22, 2025

Page 2 ends

and 2024. This allows for maximum banking of unused entitlement for this water year.

Attachment 6 details the stored and surplus water for water year 2024/2025.

ANALYSIS OF ISSUES:

The United States Drought Monitor, as of July 11, 2025, shows San Luis Obispo County is abnormally dry. Rainfall for the Fiscal Year period of July 1, 2024, through June 30, 2025, is 9.35 inches at the Corporate Yard rain gauge. Lopez Lake is 88.0% as of July 11, 2025.

The deep well index for the 2nd quarter of 2025 was completed on April 14, 2025, and is

12.07 feet above sea level, which is 4.57 feet above the threshold valve. The current deep well index is 0.17 feet lower than January 2025, and 1.74 feet lower than April 2024.

On January 15, 2025, in response to a preliminary injunction issued by the United States District Court to the County of San Luis Obispo, Lopez Lake downstream releases were increased from 2.0 million gallons per day to 5.1 million gallons per day, or 5,800 AF per year (AFY). These releases are required until the lake is drawn down to 20,000 AF, after which the releases will drop to 4,300 AFY, even though the “safe yield” is 4,200 AFY. The County has prepared an updated projection that reflects the increased release rate. The impact on Lopez Lake storage with this release level is shown in Attachment 2.

The increased release rate does not impact the City’s contract entitlement (how much water the City receives) from Lopez Lake. The month-to-month comparisons at this time show a negligible reduction due to Lopez Lake’s high volume during the dry season. The City will continue working with the County to develop a multi-year projection showing how increased downstream releases will likely impact Lopez Lake storage levels.

Attachment 5, titled 2011 to 2024 Actual Storage vs. Predicted Storage model, provides past annual water storage information from 2011 to 2024. The blue “Actual Storage (AF)” line on the graph shows the water storage levels in Lake Lopez over 13 years. The dark orange line shows what water storage levels would have been if the current court-ordered release rates were in effect during the period. The dashed lines denote specific water storage levels, such as spillway or maximum capacity (49,476 AF) and minimum pool (1,690 AF), or essentially no potable water.

The model shows:
 Out of the 13 years, 9 of those years would activate the Low Reservoir Response Plan (LRRP) – below 20,000 AF, which limits water consumption.  Approximately 3 years of significant water quality issues.  Approximately 2 years of no potable water.

The County appealed the preliminary injunction. The City and all other Zone 3 contractors will continue to work with the County to assess and report the impact on our water supply

Page 350 of 467 ends

Item 9.k.

City Council
Monthly Water Supply and Demand Update
July 22, 2025

Page 3 ends

from Lopez Lake until litigation is resolved. However, the costs of this litigation will be shared by the City and Zone 3 member agencies.

ALTERNATIVES:

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

1. Receive and file the report, or

2. Provide other directions for staff.

ADVANTAGES:

The report provides the City Council and the public with the current and projected water supply and demand conditions.

ENVIRONMENTAL REVIEW:

No environmental review is required for this item.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Monthly Operations Report for June

2. Lopez Lake Reservoir Storage Projection

3. Previous Year Water Use Comparison

4. Deep Well Index Levels for 2
nd Quarter

5. 2011 to 2024 Actual Storage vs. Predicted Storage

6. 2024-2025 End of Water Year Stored Project Water and Surplus Water Generated (April 2024 – March 2025)

Page 351 of 467 ends

Page 352 of 467 ends

Page 353 of 467 ends

Page 354 of 467 ends

Page 355 of 467 ends

Page 356 of 467 ends

Attachment 6

Page 357 of 467 ends

Item 9.l.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development SUBJECT: Professional Services Agreement for Building Division Staff, Plan Review, and Inspection Services
DATE: July 22, 2025
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a Professional Services Agreement for Consultant Services for Building Division staff, plan review, and inspection services with JAS Pacific, 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 the approval of a Professional Services Agreement for the contemplated services is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

No costs are associated with contract awards. Costs will be incurred for specific projects and services in compliance with the approved budget. Fiscal Year 2025-26 and Fiscal Year 2026-27 budgets each contain $560,000 for the Building Division Contractual Services account. Funds for additional/extension years will be allocated for in future budgets.

BACKGROUND:

The use of consultants has proven to be an effective tool in the timely evaluation and delivery of City projects and services. In this case, the Community Development Department began utilizing the services of on-call contract building inspectors in 2006 when budget constraints eliminated the full-time building inspector position. Contract building plan review services have been used on an as-needed basis for many years during concentrated/peak permit submittal time frames, and for larger, more complex projects. In 2021, the utilization of a full contract building plan review and inspection services consultant began and again proved to improve customer service to City building permit applicants and decrease wait times for plan reviews and inspections. The most recent building plan review and inspection services consultant agreement was approved

Page 358 of 467 ends

Item 9.l.

City Council
Professional Services Agreement for Building Division Staff, Plan Review, and Inspection Services
July 22, 2025

Page 2 ends

with CSG in September 2023, including the Chief Building Official (CBO), plan review, and inspection services. In August 2022, the City hired an in-house Building Permit Technician to provide permit administrative services and act as a City Hall front counter presence for the Building Division. The existing building services contract with CSG expires in September 2025. In anticipation of this expiration, staff made the decision to explore other service provider opportunities through the Request for Proposals (RFP) process, while utilizing a short-term interim Professional Services Agreement with JAS Pacific for Building Official services to ensure no gaps in service before the Council could consider a longer-term solution and move through the more formal RFP process. That interim Professional Services Agreement was approved with a not-too-exceed amount within the City Manager’s existing contract authority. Staff’s recommendation for JAS Pacific was based on a full review of all submitted proposals in accordance with the City’s RFP process.

Qualifications Received and Evaluation Process
On June 20, 2025, the City issued an RFP for Building Division Staff and Plan Review Services. Prior to the close of the RFP deadline on July 2, 2025, the City received RFPs from eight (8) separate companies. Each of the proposals were ranked by City staff based on the following publicly advertised criteria:

1. Responsiveness to RFP;

2. Quantity, quality and relevance of the firm’s experience and resources; and

3. References
Based on staff’s review, JAS Pacific was identified as the top firm because of their ability to provide a greater degree of local inspectors, excellent qualifications and customer service, and competitive costs of service fees. Staff entered into contract negotiations with JAS Pacific, which has agreed to a draft contract, based on the City’s template Professional Services Agreement (Attachment 1 Exhibit A).

ANALYSIS OF ISSUES:

The current proposal for consideration by the City Council is for Building Division services that will provide the following:
 Building Plan Review Services - remote and/or on-site Plan Review staff;  All levels of on-site Building Inspection, as well as remote/virtual inspections;  As-needed Certified Building Official position services; and  Excellent and timely customer service, work well with residents, business owners, contractors, building industry professionals, and City staff.

Staff continues to have a budget-conscious and applicant-centric Building Division services model that has worked through refinement over the past couple of years.

Significant improvements have been made in permit processing time, predictability of inspections, and Building Code and life and safety compliance communications. The City

Page 359 of 467 ends

Item 9.l.

City Council
Professional Services Agreement for Building Division Staff, Plan Review, and Inspection Services
July 22, 2025

Page 3 ends

has received positive feedback from staff, residential applicants, and industry professionals (contractors, Architects, and Engineers) while staff and the City’s contract service providers continuously review processes for improvement.

The customized set of services in the proposed agreement includes:
 A Part Time CBO will conduct inspections, address issues out in the field and over the phone, and provide appropriate options if possible, to code compliance difficulties. The CBO also manages the plan review and inspection staff and reports to the Community Development Director and City Management staff.  Part Time Building Inspector will conduct both standard residential and more complicated commercial inspections.
 Full Building Plan Review services (remote). All Building Plans are submitted electronically and reviewed by the contracted service.

The term length of the proposed agreement with JAS Pacific is two (2) years, with an option to extend the agreement for an additional two (2) years.

ALTERNATIVES:

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

1. Approve staff's recommendations;

2. Do not approve staff's recommendations. This option will require on-call interim service to continue but will not provide the predictability and certainty to applicants, contractors, and developers with the availability of continuous service delivery; or

3. Provide other direction to staff.

ADVANTAGES:

Approving the agreement with JAS Pacific will continue to allow the City to provide high quality plan review and inspection within a reasonable time-period, particularly through a consultant that can provide more local inspections.

Over time, the consulting firm will develop a better understanding of the City's procedures, practices, and expectations, continuing to enhance efficiency and product delivery. This will in turn help the customer experience as they develop a relationship with applicants, contractors, and developers.

Establishment of this service agreement does not preclude the City from obtaining consultant services through the formal Request for Proposals (RFP) process for more specific project needs, specialty work, or grant requirements.

DISADVANTAGES:

None known at this time.

Page 360 of 467 ends

Item 9.l.

City Council
Professional Services Agreement for Building Division Staff, Plan Review, and Inspection Services
July 22, 2025

Page 4 ends

ENVIRONMENTAL REVIEW:

The contract agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because the approval of a Professional Services Agreement for the contemplated services has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378
PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution with Exhibit A Proposed Professional Services Agreement

Page 361 of 467 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ARROYO GRANDE AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT FOR CONSULTANT SERVICES FOR

BUILDING DIVISION STAFF, PLAN REVIEW, AND

INSPECTION SERVICES WITH JAS PACIFIC
WHEREAS, the City began utilizing full contract building official, building plan review, and building inspection consultant services in 2021 which improved customer service and decreased wait times for plan reviews and inspections; and WHEREAS, the City Council approved a contract for services between the City and CSG Consultants, Inc. on September 26, 2023 and that contract expires on September 26, 2025; and
WHEREAS, under the new proposed agreement, included as the first attachment to the Staff Report titled “Consideration of a Professional Services Agreement for Building Division Staff, Plan Review, and Inspection Services” and dated July 22, 2025, JAS Pacific will provide building division staff, plan review and inspection services to the City for a two year term, with an option to extend the agreement for an additional (2) years (the “Contract”); and
WHEREAS, contracted services will include, but are not limited to: plan review services, building inspection, building official services, and other services such as building code adoption and ordinance development; and
WHEREAS, approving the Contract is not a project subject to the California Environmental Quality Act (“CEQA”) because the approval of a Professional Services Agreement for the contemplated services 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; and
WHEREAS, all prerequisites to the adoption of this Resolution have occurred.

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. Approves the Contract (Exhibit A), and authorizes the City Manager to execute the Contract with JAS Pacific to provide building division services, for a period of two years, with an option to extend the agreement for an additional (2) years, in an amount not to exceed One Million One Hundred and Twenty Thousand Dollars ($1,120,000), in substantially final form, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney.

Page 362 of 467 ends

RESOLUTION NO.

PAGE 2
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 22nd day of July, 2025.

Page 363 of 467 ends

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

Page 364 of 467 ends

EXHIBIT A

CITY OF ARROYO GRANDE

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 20___, by and between the City of Arroyo Grande, a municipal corporation organized under the laws of the State of California with its principal place of business at 300 E. Branch Street, Arroyo Grande, California 93420, County of San Luis Obispo, State of California ("City") and JAS Pacific, with its principal place of business at 843 7th Street, Suite E, Paso Robles, CA ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing Building Division services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render professional services for the provision of Building Division consulting services (the “Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Building Division consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. Unless earlier terminated as provided herein, the term of this Agreement shall be from July 28, 2025 to July 28, 2027. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

This Agreement may be extended for one (1) additional two (2) year period after the Initial Term upon written agreement by the City and Consultant. All terms and conditions of this Agreement shall apply to the additional two (2) year term.

3.2 Compensation.

3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Five Hundred and Sixty Thousand Dollars ($560,000) for FY 2025-26 and Five Hundred and Sixty Thousand Dollars ($560,000) for FY 2026-27 for a total not to exceed of One Million One Hundred and Twenty Thousand Dollars ($1,120,000) without written approval of the City Council. Extra Work may be authorized, as described below, and if authorized, will be

Page 365 of 467 ends

-2-
compensated at the rates and manner set forth in this Agreement.

3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3 Responsibilities of Consultant.

Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law.

Consultant 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, disability insurance, and workers' compensation insurance.

3.3.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.3.4 Substitution of Key Personnel. Consultant has represented to City that

Page 366 of 467 ends

-3-
certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Bryan Spain, Regional Operations Manager and Mark Sadowski, Principal Plans Examiner/Building Inspector.

3.3.5 City's Representative. The City hereby designates the Community Development Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.3.6 Consultant's Representative. Consultant hereby designates Bryan Spain, Regional Operations Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

Page 367 of 467 ends

-4-

3.3.9 Period of Performance.

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.3.10 Laws and Regulations; Employee/Labor Certification.

Page 368 of 467 ends

-5-
a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.3.11 Insurance.

Page 369 of 467 ends

-6-

3.3.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage

Page 370 of 467 ends

-7-
reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(C) Professional Liability (Errors & Omissions):(1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. (D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.3.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

Page 371 of 467 ends

-8-
such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.3.11.9 Enforcement of Agreement Provisions (non estoppel).

3.3.11.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(C) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.

Page 372 of 467 ends

-9-
(F) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.4 Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant 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. If 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 $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant 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 the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

Page 373 of 467 ends

-10-
records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant 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 DIR against Consultant or any subconsultant.

3.4.4 Labor Certification. By its signature hereunder, Consultant certifies that it 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 Services.

3.5 Termination of Agreement.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.6 Indemnification.

3.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees,

Page 374 of 467 ends

-11-
agents, or volunteers.

3.7 General Provisions.

3.7.2 Independent Contractors and Subcontracting.

3.7.2.1 Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (“Subcontractor(s)”) unless approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.

Consultant: JAS Pacific
843 7th Street, Suite E
Paso Robles, CA 93446

Page 375 of 467 ends

-12-
ATTN: Ian Livingston
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
ATTN: Brian Pedrotti, Community Development Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.7.4 Ownership of Materials and Confidentiality.

3.7.4.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

Page 376 of 467 ends

-13-
it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.7.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

Page 377 of 467 ends

-14-
procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

3.7.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.7.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.7.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

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

3.7.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely

Page 378 of 467 ends

-15-
for Consultant, to solicit or secure this Agreement. Consultant 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 Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.7.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

Page 379 of 467 ends

-16-

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND

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

CITY OF ARROYO GRANDE JAS Pacific,
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:

Approved By:

Matthew J. Downing
City Manager
Approved as to Form:
_____________________________________
Best Best & Krieger LLP
City Attorney
Attested By:

City Clerk

Page 380 of 467 ends

EXHIBIT "A"

SCOPE OF SERVICES

Page 381 of 467 ends

Page 382 of 467 ends

Page 383 of 467 ends

Page 384 of 467 ends

Page 385 of 467 ends

EXHIBIT "B"

SCHEDULE OF SERVICES

Page 386 of 467 ends

EXHIBIT A
EXHIBIT "C"

COMPENSATION

Page 387 of 467 ends

Item 9.m.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Andrew Perez, Planning Manager
SUBJECT: General Plan Update Progress Report – July 2025 DATE: July 22, 2025
RECOMMENDATION:

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

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The financial and personnel impacts associated with this progress report are included in the budget for the Comprehensive General Plan Update.

BACKGROUND:

Last month’s progress report was provided for the City Council on June 24, 20251. The report described the initial efforts to update the Safety Element, including the preparation of a Climate Change Vulnerability Assessment (CCVA) and Emergency Evacuation Analysis, and data collection to establish the baseline greenhouse gas (GHG) inventory for the Climate Action Plan (CAP).

ANALYSIS OF ISSUES:

The CCVA and Emergency Evacuation Analysis documents were finalized and will be utilized to update Safety Element goals and policies. Understanding the city’s vulnerabilities to climate change will allow for the development of Safety Element goals, policies, and implementation programs to increase the City’s resilience to climate change.

Likewise, the analysis of the City’s evacuation capacity will result in policies in both the Safety Element and Circulation Element to improve evacuation capacity and emergency preparedness.

Staff also contemplated updates to Circulation Element maps, factoring in the adoption of the preferred land use scenarios that identify the North Fair Oaks and Frederick’s Specific Plan areas and infrastructure improvements identified in the Active

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=15029

Page 388 of 467 ends

Item 9.m.

City Council
General Plan Update Progress Report – July 2025
July 22, 2025

Page 2 ends

Transportation Plan. Given the fact that General Plans are intended to be holistic and general in nature, the Circulation Element map will acknowledge that infrastructure improvements will be required to accommodate development within the specific plan areas without identifying the specific improvements. The respective specific plans will focus on precise improvements and alterations to enable each of these developments.

Additionally, the staff and consultants are moving forward with policy development for the other elements based on previous direction from Council and the advisory bodies, community feedback, and State law mandates.

The City’s consultant is using the GHG data to establish the baseline inventory for the CAP, a process that is expected to conclude in October. The baseline inventory will be used to forecast future GHG emissions based on projected growth and land use patterns.

This step is important because it identifies the source of emissions, how they are expected to change, and sets measurable goals that are aligned with State mandates. Following the establishment of the baseline inventory and future forecast, the team will engage with the community and decision makers to develop implementation measures. Specific information about community engagement opportunities for the CAP will be provided in future progress reports.

Schedule and Timeline Progress
Staff review of the draft elements is anticipated to begin in mid-August and last through November. A public hearing with the Planning Commission is tentatively scheduled for December 3, 2025. The Council’s review will occur in January 2026; however, that timing is dependent on the direction from the Planning Commission. A short-term project schedule that shows tasks through the end of the calendar year is provided as Attachment

1. The overall project remains on schedule with the timeline2 provided to the City Council as an attachment to the February 2025 progress report. As shown in the simplified schedule table below, the project is on schedule, with Phase 6: General Plan, Phase 10:

Economic Development Tools , and Phase 11: Climate Action Plan Update currently in process. Phases 1 through 5 have been completed.

Phase Status Completion Expected
1: Project Initiation Complete N/A
2: Public Outreach Strategy Complete N/A
3: Gather and Analyze Data Complete N/A
4: Visioning and Guiding Principles Complete N/A
5: Land Use Scenarios Complete N/A
6: General Plan In Process December 2025
7: Program EIR Not started August 2026
8: Public Review and Adoption Not started November 2026 9: Comprehensive Dev Code Not started March 2027
10:Economic Development Tasks In Process – draft analysis November 2025 11:Climate Action Plan Update In Process – draft analysis January 2027

2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=13849

Page 389 of 467 ends

Item 9.m.

City Council
General Plan Update Progress Report – July 2025
July 22, 2025

Page 3 ends

ALTERNATIVES:

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

1. Receive and file this progress report on the Comprehensive General Plan Update; or

2. Provide other direction to staff.

ADVANTAGES:

Regular updates to the City Council will inform decision-makers and the community on the status of the project.

DISADVANTAGES:

None identified.

ENVIRONMENTAL REVIEW:

No environmental review is required to receive and file this progress report on the General Plan Update because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, Cal.

Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.).

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. General Plan Update Short Term Schedule

Page 390 of 467 ends

ATTACHMENT 1

Page 391 of 467 ends

65501.00002\43948303.9
Item 10.a.

MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Patrick Holub, Associate Planner
SUBJECT: Appeal Case 24-002; Appeal of Planning Commission Denial of Tentative Parcel Map 23-001; Location – 444 Lierly Lane; Appellant – Bruce Vanderveen and Jeanne Helphenstine; Representative – MBS Land Surveys
DATE: July 22, 2025
RECOMMENDATION:
1) Adopt a Resolution denying Appeal Case No. 24-002 and denying with prejudice Tentative Parcel Map 23-001; and
2) Determine that denial of the Project is exempt from environmental review under the California Environmental Quality Act (CEQA) because CEQA does not apply to the disapproval or rejection of projects by a public agency. (Pub Resources Code, § 21080, subd. (b)(5); State CEQA Guidelines, § 15270, subd. (a).). There will be no subdivision or construction as a result of the denial of this application for a subdivision, and therefore the denial 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:

No financial impact is projected.

EXECUTIVE SUMMARY:

This summary provides the Council with a briefing of the issues relating to this appeal and then provides the timeline of events.

Brief of the Issues
Tentative Parcel Map Application 23-001 seeks to subdivide a 1.31-acre parcel on Lierly Lane into four lots, with one remainder parcel (the “Project”). The Planning Commission (the “Commission”) denied the Project, and the applicant has appealed.

Page 392 of 467 ends

Item 10.a.

City Council
Appeal Case 24-002; Appeal of Planning Commission Denial of Tentative Parcel Map 23-001; Location – 444 Lierly Lane; Appellant – Bruce Vanderveen and Jeanne Helphenstine; Representative – MBS Land Surveys
July 22, 2025

Page 2 ends

At issue with the Project is the proposed eight-foot easement for private road access from Lierly Lane to East Cherry Avenue. Such access is inconsistent with Section CT1-1 of the General Plan Circulation Element, Section 16.20.050(E) of the Arroyo Grande Municipal Code (AGMC), and the City Standard Specifications and Engineering Standards, which, collectively, require a 24-foot access easement for private roads. Complying with the 24- foot minimum requirement for private roads is necessary to ensure adequate vehicular traffic and to allow sufficient access for emergency response vehicles. The proposed eight-foot easement itself contains multiple impediments to access, including utility poles, a fire hydrant, and privately owned fences and hedges. While one can observe an existing eighteen-foot (18’) gravel roadway on Lierly Lane at its intersection with East Cherry Avenue, that built roadway does not align with the access easement on record with the County of San Luis Obispo (the “County”), meaning the majority of that gravel roadway is private property outside the applicant’s control.

On October 29, 2024, the Commission held a duly noticed public hearing and adopted a resolution denying the Project due to the insufficient width of the access road. The Commission’s resolution made negative findings as to: (A) the Project’s consistency with the General Plan, (B) the site’s suitability for the type of development proposed, (C) the site’s suitability for the proposed density of development, (D) the likelihood that the design of the Project would not cause serious public health problems, and (E) that adequate public facilities and services exist or will be provided as a result of the Project.

The applicant has appealed to the City Council, arguing that staff had previously indicated, in an email sent in 2023, that the existing primary access was sufficient. The appeal argues that applicant would not have moved forward “if not for the . . . determination of staff.” However, staff’s determination was non-binding, was based on preliminary information, and staff lacks authority to approve subdivisions of land, let alone approve subdivisions with substandard access. The City Council instead has, by the express terms of the municipal code, delegated authority to approve tentative parcel maps to the Commission. The applicant did not provide additional basis for appeal of the Commission’s decision.

Brief Timeline:
 The Commission held its first public hearing on the project at its March 19, 2024 meeting. During this hearing, a number of residents raised concerns regarding vehicular access to the proposed lots. The hearing was continued to May 7, 2024.  The Commission continued the public hearing to October 15, 2024, to allow the applicant time to address the access concerns. Shortly before the October 15, 2024 hearing, the applicant raised new legal arguments, causing the Commission to continue the Project to allow sufficient time to consider the new issues raised.  On October 29, 2024, the Commission adopted a resolution denying the Project.

Page 393 of 467 ends

Item 10.a.

Page 3 ends

 On November 8, 2024, the applicant filed an appeal of the Commission decision.

The City Council was prepared to hear the appeal at its January 14, 2025 City Council meeting. The applicant subsequently enlisted legal counsel and requested a continuance of the appeal hearing. The applicant agreed to waive, to the extent applicable, any required timeline for the appeal under the Subdivision Map Act. (Attachment 2)
 On January 14, 2025, the City Council approved the applicant’s request for a continuance of the appeal hearing. Over the intervening months, the applicant has continued to ask for additional time to negotiate with the adjacent property owner to increase the width of the private roadway. The applicant has represented to the City that they have sought to engage with the adjacent property owner, but have not been able to contact that property owner or reach any agreement to widen the access road.
 After months of providing the applicant additional time in good faith to secure additional width of the access road, the City informed the applicant team that the appeal would occur as early as late June of 2025, or as an alternative, the applicant could choose to withdraw the appeal and reapply when the access issues were resolved.
 On July 3, 2025, the City informed the applicant via email that the City Council would hear the appeal on July 22, 2025.

BACKGROUND:

The 1.31 acre project site (the “Property”) is located on 444 Lierly Lane at the end of a private roadway. (Attachment 3) It is surrounded by residential development on all sides, and is bordered by Arroyo Grande Creek to the north. The parcel is currently developed with a 3,108 square foot single-family residence, and is located within the Single Family Residential District. The most recently recorded map applicable to the Property is shown in Attachment 4.

Parcel Map Project Description
The applicant proposes a parcel map to create four (4) new parcels with one (1) remainder parcel to contain the existing residence. Dimensions for the proposed parcels range in size from 9,680 square feet to 9,689 square feet with dimensions of just less than one hundred forty feet (140’) deep by approximately seventy feet (70’) wide. The proposed parcel sizes are shown in Table 1.

Table 1: Proposed Lot Sizes
Parcel 1 Parcel 2 Parcel 3 Parcel 4 Remainder
9,680 sf 9,688 sf 9,689 sf 9,683 sf 18,324 sf

Page 394 of 467 ends

Item 10.a.

Page 4 ends

Staff Advisory Committee (SAC)
The SAC discussed the Project on August 3, 2023. The SAC discussed items such as emergency access, private access, and fire suppression. The SAC expressed concerns about the width of Lierly Lane, which is the sole non-emergency access point to the parcel. The SAC requested that the Project maintain the existing emergency access point as gated access for all emergency services.

Public Hearings of the Commission
On March 19, 2024,
1 the Commission conducted a public hearing for this Project. During the hearing, a significant number of nearby residents testified to the narrowness of the existing private access on Lierly Lane and also about their opposition to the use of the identified emergency access points. After hearing concerns from members of the public, the Commission continued2the public hearing to a date certain of May 7, 2024, in order to allow time for the applicant to address concerns related to primary and emergency access, reimbursement for any damages to private property adjacent to the Property during construction as well as to address maintenance, irrigation, and fencing concerns.

That meeting was also continued due to the inability of the applicant to resolve the aforementioned issues in time for the hearing. In the subsequent months, staff and the applicant met numerous times with neighbors and property owners, and the applicant was unable to resolve the issues related to primary access through either the acquisition of property or agreements for access easements.

On October 15, 2024, the Commission reconvened for the continued public hearing on the proposed Project. Shortly before the hearing was to occur, the applicant submitted a letter to the Commission raising new legal arguments about timelines associated with the Subdivision Map Act. The Commission continued the Project to October 29, 2024, to allow staff time to review the late letter and address the new arguments raised.

On October 29, 2024, the continued public hearing was held by the Commission, which voted unanimously to deny the Project based upon the findings identified in the City’s staff report.
3 In the intervening months, staff met with the applicant team several times and even offered to provide a neutral site for a meeting with the adjacent property owner. However, attempts by the applicant team to coordinate with the adjacent property owner have not been successful, and action on the appeal is necessary.

1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=9c5b19b0-ec48-4f0c-a688- c42deb398f34&lang=English&Agenda=Agenda&Item=17&Tab=attachments 2 https://pub-arroyogrande.escribemeetings.com/FileStream.ashx?DocumentId=10543 3 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=12892

Page 395 of 467 ends

Item 10.a.

Page 5 ends

ANALYSIS OF ISSUES:

As relevant to this appeal, subdivision proposals must meet all applicable requirements described below:

Land Division Standards
AGMC Section 16.20.0504 contains all of the applicable standards associated with land divisions such a minimums for lot width and depth, improvement standards, and required access. Subsection C of this chapter states that any subdivision shall conform to the minimum lot area and width requirements of the zoning for the property. Table 1 shows how the proposed Project complies with development standards for the SF zone.

Table 1: Single Family District Development Standards
Development Standard SF Requirement Proposed Notes
Lot Size 7,200 sf 9,680sf - 9,689 sf Code Met
Lot Width 70’ 70.00’ - 70.15’ Code Met
Lot Depth 100’ 137.85’ - 138.27’ Code Met
Access and Exception Request
The applicant proposed to provide access to the four lots via Lierly Lane, a private road that currently serves the Property and the other lots on this private road. At its intersection with East Cherry Avenue, Lierly Lane is a gravel roadway eighteen feet (18’) in width.

However, the existing roadway does not align with the easement on record, which is an eight-foot access easement that runs from East Cherry Avenue. The roadway configuration is shown in Figure 1 below. When comparing the location of the recorded easement to the observable roadway, half or more of the roadway is on private property.

Because the access at the intersection of East Cherry Avenue and Lierly Lane is private property and out of the control of the applicant, the applicant is unable to create a private access roadway consistent with City Engineering Standard5 7010, which requires two twelve-foot travel lanes.

4 https://library.municode.com/ca/arroyo_grande/codes/code_of_ordinances?nodeId=CD_ORD_TIT16DEC O_CH16.20LADI_16.20.050STLADI
5 https://www.arroyogrande.org/DocumentCenter/View/3151/2016-Standard-Specifications-andEngineering-Standards-PDF

Page 396 of 467 ends

Item 10.a.

Page 6 ends

Figure 1: The yellow line depicts the 8’ wide road easement and the conflict with existing utilities and the deviation of the gravel roadway.

On August 7, 2024, the applicant’s representative submitted an exception request consistent with the requirements of AGMC Section 16.20.050(E)(2)6for a waiver from the access standards. Exceptions to the requirements for public access may be waived, if certain circumstances exist:
a. If a parcel map creates four or less parcels and public access over intervening lands cannot be offered for dedication, and appurtenant private easements for ingress, egress, roadway, and public utility purposes may be approved, provided:
i. The land to be divided is not zoned for commercial, industrial or multiplefamily residential uses; ii. If no improvements are required, the private easement is no less than twenty (20) feet in width, and is duly recorded, is perpetual in duration, and is not subject to liens and encumbrances which might impair or defeat its purpose. If improvements are required, a minimum of forty (40) feet is required; and
iii. The access easement owned by the land divider is not an exclusive easement or specifically written to prohibit further subdivision of the land.

6 https://library.municode.com/ca/arroyo_grande/codes/code_of_ordinances?nodeId=CD_ORD_TIT16DEC O_CH16.20LADI_16.20.050STLADI

Page 397 of 467 ends

Item 10.a.

Page 7 ends

b. If a subdivision map has been previously recorded that permitted private streets without the requirement of offering the streets for dedication, a private road easement may be approved provided said easement grants the new lots unrestricted access rights to the existing private streets.

The applicant’s exception request, provided as Attachment 5, states that the applicant has no right, title, or interest beyond the existing eight-foot easement. It further states that after due diligence, the applicant has been unable to acquire any additional property or easements to widen the access road.

The applicant has requested that the City Council consider this exception request. Staff does not support the requested waiver because the Project does not meet the circumstances established by the AGMC for the granting of an access waiver. The private easement would remain less than the required 20’ width, and utility poles, a fire hydrant, and privately owned fences and hedges are built over the easement of record. Those features built on the land currently prevent travel over the proposed access area.

Due to the substandard roadway width and paving material of Lierly Lane, a separate emergency access point is required for this Project. To provide adequate emergency access, the applicant proposes to connect the emergency access roadway shown on the proposed parcel map to the existing emergency access road between 307, 311 and 313 Myrtle Drive.

The recorded tract map established public emergency access and public utility easements that encumber 307, 311, and 313 Myrtle Drive (Lots 26-28 on the final map).

The applicant has not resolved the impediments to access created by these encumbrances. Accordingly, staff recommends against granting the waiver.

Required Findings
In order to approve a tentative parcel map, the Planning Commission must make all of the findings in Section 16.20.070.C of the AGMC. At the October 29, 2024, meeting, the Planning Commission resolved to deny the Project for failure to satisfy findings #1, 2, 3, 5, 6, and 8 of AGMC Subsection 16.20.070(C). Those findings, and the rationale of the Commission, is provided below.

Finding #1. The proposed tentative parcel map is consistent with goals, objectives, policies, plans, programs, intent and requirements of the Arroyo Grande General Plan, as well as any applicable Specific Plan, and the requirements of this title.

Page 398 of 467 ends

Item 10.a.

Page 8 ends

Staff Response: The Project is not consistent with the adopted Circulation Element7, the Arroyo Grande Municipal Code, and the City’s Engineering Standards, Plans, and Policies, which state the following:
“Circulation Element. CT1-1 Standards: Streets shall be constructed in conformance with the City and State’s adopted Engineering Standards, Plans, and Policies that apply to each classification. Variations and modifications in Standards and planned alignments may be permitted with City Council approval or City Engineer/Public Works Director approval where delegated.

Arroyo Grande Municipal Code. Section 16.20.050.E – Required Access. No land division final map shall be recorded unless public access is provided from each parcel of the land division to a city, county, county service area, community service district, state or federal road that is maintained for public use. Public access to a road maintained by a property owner's association may be allowed if the city council determines that there is no other feasible means of guaranteeing maintenance of the road for public use, and if the association has the unqualified right to maintain the road pursuant to recorded conditions, covenants and restrictions which require the association to maintain the road and such requirement cannot be amended or terminated with the consent of the city.

City Standard Specifications and Engineering Standards8 Standards for Private Road – 24 feet”
The existing private road easement is 8 feet in width and does not meet the adopted constructed private road standard of 24 feet in width. The existing 8-foot wide easement would not only prevent most emergency responder vehicles from accessing the site, but would prevent several types of passenger vehicles as well. The applicant will be creating four additional parcels that will generate additional vehicle trips on an existing deficient private road. The constructed roadway does not align with the location of the easement, and utility poles and a hydrant are located within the easement that further restrict vehicle access. Thus, the deficient private road will not accommodate traffic from the proposed Project in a safe manner for residents as the limited easement width compromises resident access.

7 https://www.arroyogrande.org/DocumentCenter/View/472/Circulation-Element 8 https://www.arroyogrande.org/DocumentCenter/View/3151/2016-Standard-Specifications-andEngineering-Standards-PDF

Page 399 of 467 ends

Item 10.a.

Page 9 ends

Finding #2 and #3. The site is physically suitable for the type of development proposed and the site is physically suitable for the proposed density of development.

Staff Response: The site is not suitable for the type of development or the proposed density of development because the Project does not utilize a design that is compatible with the surrounding neighborhood due to providing substandard access which will affect property owners adjacent to the proposed site.

Finding #5. The design of the subdivision or type of improvements is not likely to cause serious public health problems.

Staff Response: The Project proposes substandard access, therefore, the Project is likely to cause serious public health problems. The existing road width would be an impediment to access for emergency vehicles. The existing private road easement is 8 feet in width and does not meet the adopted constructed private road standard of 24 feet in width for a two-lane private road. The applicant will be creating four additional parcels that will generate additional vehicle trips on an existing deficient private road. Further, the physical driveway does not match the location of the easement, and utility poles are located within the easement that further restrict vehicle access.

Finding #6. The design of the tentative parcel map or the type of improvements will not conflict with easements acquired by the public-at-large for access through, or use of, property within the proposed tentative parcel map or that alternate easements for access or for use will be provided, and that these alternative easements will be substantially equivalent to ones previously acquired by the public.

Staff Response: The tentative parcel map will not interfere with existing access easements owned by the public at large. However, the proposed Project does not provide alternate easements for access that are substantially equivalent to the ones previously acquired by the public. The existing private road easement is 8 feet in width and does not meet the adopted constructed private road standard of 24 feet in width for a two-lane private road.

Finding #8. Adequate public services and facilities exist or will be provided as the result of the proposed tentative parcel map to support project development.

Staff Response: The Project site has substandard access to the parcel. The substandard access affects the ability of public service vehicles and emergency responder vehicles to access the parcel. The proposal does not provide additional access facilities that would resolve the substandard access.

Page 400 of 467 ends

Item 10.a.

Page 10 ends

Applicant’s Letter Prior to Commission Denial and Staff’s Response On October 14th, the applicant’s representative sent City staff a letter asserting several items related to the Subdivision Map Act and housing law. That letter was sent to the Commission as a supplemental memo9 prior to the start of the October 14th meeting.

The applicant’s primary support of their argument alleged that City staff determined the Project was exempt from CEQA on, or before, March 19, 2024. This misunderstands the role of staff in approving CEQA projects. In actuality, City staff may only recommend that the Commission find that the project is exempt from CEQA. The Commission meeting was duly noticed and a hearing was held on March 19, 2024. But, the Commission ultimately did not act on staff’s recommendation, and instead opted to continue the hearing. The Commission instead determined the Project was exempt on October 29, 2025, the date it adopted its resolution denying the Project.

Further, a tentative map is not deemed approved when it violates local law or the Subdivision Map Act itself. The applicant’s other arguments that pertained to the City’s Regional Housing Needs Allocation (“RHNA”) were deemed irrelevant to approving the tentative map, as there is no proposed housing project at this time.

Staff notes that, when the applicant requested that the hearing on the appeal be continued in January of this year, the applicant agreed to waive all the above asserted timelines under the Subdivision Map Act to allow them additional time to widen the existing access road.

Basis of the Appeal
The appeal filed on November 8, 2024, states that the justification for filing an appeal is that the “applicants would not have pursued the project if not for the Aug 3, 2023, determination by staff.” (Attachment 6) The email referenced in the appeal was from staff to the applicant’s representative, and was part of the pre-application process—not a “determination.” The staff email indicated that, based on review by the SAC, the existing primary access would be sufficient to move the project forward with the preliminary evaluation of the project —it did not act as an approval. The SAC’s role is advisory, and it was only authorized to make a recommendation to the Commission. (See AGMC Section 16.20.040) Changes in factual circumstances occurred and the information provided to the City by applicant in the year between that 2023 email and the present.

9 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=12773

Page 401 of 467 ends

Item 10.a.

Page 11 ends

The SAC recommendation in 2023 was based on the best available information at the time, and following review of the application, new information was made available to staff that ultimately resulted in staff’s recommendation for denial:
 During the original March 19, 2024, Commission hearing, several members of the public provided comments that the location of the primary private access (Lierly Lane) depicted on the plans reviewed during the preapplication review was incorrect with respect to the location of the roadway.
 The owner of 811 Lierly Lane subsequently performed a survey of the easement location, which determined that the eight-foot access easement did not match the existing physical private road (Lierly Lane). The applicant also confirmed the accuracy of this survey. Further, the location of the eightfoot easement contains infrastructure such as utility poles, a fire hydrant, and privately owned fences and hedges that obstruct access.  Based on the survey, staff determined that the existing primary access point proposed for the project would not be sufficient for the type of development and density proposed and subsequently formed the basis for staff’s analysis and recommendation for denial.

The applicant’s basis appeal fails because staff is not authorized to make a binding determination as to divisions of land. Commission approval is required under the AGMC in order to authorize divisions of land. The Commission’s approval is required because it is the “advisory agency” for tentative parcel map approvals. (AGMC Section 16.20.040) Staff’s authority is limited to making recommendations to the Commission regarding applications. (Id.) Thus, the Commission properly denied the application under AGMC Section 16.20.070 pursuant to its authority. The October 29, 2024 determination of the Commission to deny the application for Tentative Parcel Map 23-001 should be upheld, and Appeal Case No. 24-02 should be denied.

ALTERNATIVES:

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

1. Adopt the proposed Resolution denying Appeal Case No. 24-002 and denying Tentative Parcel Map 23-001;

2. Modify and adopt the proposed Resolution denying Appeal Case No. 24-002 and denying Tentative Parcel Map 23-001;

3. Do not adopt the proposed Resolution, take tentative action to uphold Appeal Case No. 24-002, and provide direction for staff to return with an appropriate supporting resolution including findings for approval of Tentative Parcel Map 23-001;

4. Provide other direction to staff.

Page 402 of 467 ends

Item 10.a.

Page 12 ends

ADVANTAGES:

Denial of the appeal and denial of the project will prevent the subdivision of a parcel with substandard private access that would cause potential health and safety issues for the existing and future residents.

DISADVANTAGES:

Based upon the proposal, insufficient access to the subject parcel represents a potential health and safety concern for the existing and future residents that has not been addressed through this application. The increase of trips on a roadway, that already represents a safety concern, will increase the possibility of conflict and the possibility of health and safety impacts for residents.

ENVIRONMENTAL REVIEW:

Denial of the Project is exempt from environmental review under the California Environmental Quality Act (CEQA) because CEQA does not apply to the disapproval or rejection of projects by a public agency. (Pub Resources Code, § 21080, subd. (b)(5); State CEQA Guidelines, § 15270, subd. (a).). There will be no subdivision or construction as a result of the denial of this application for a subdivision, and therefore the denial 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. A public hearing notice was mailed to all property owners within 300 feet of the subject property ten days prior to the meeting and a public hearing notice was posted at the site on November 14, 2024, and July 10, 2025.

ATTACHMENTS:

1. Resolution

2. Request for Appeal Extension

3. Project Location

4. Tract 2653 Map Recorded with County Recorder

5. Exception Request

6. Appeal Form

Page 403 of 467 ends

65501.00002\43955572.5
ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DENYING APPEAL CASE NO. 24-002

AND DENYING WITH PREJUDICE TENTATIVE PARCEL
MAP 23-001; SUBDIVISION OF ONE (1) EXISTING PARCEL
INTO FOUR (4) NEW PARCELS WITH ONE (1) REMAINDER
PARCEL; LOCATION – 444 LIERLY LANE; APPLICANT –
BRUCE VANDERVEEN AND JEANNE HELPHENSTINE;
REPRESENTATIVE – KERRY MARGASON, MBS LAND

SURVEYS
WHEREAS, the applicant has filed Tentative Parcel Map 23-001 to a subdivide the existing parcel into four (4) new parcels with one (1) remainder parcel (the “Project); and WHEREAS, the existing Project site is a 1.31-acre parcel located at 444 Lierly Lane; and WHEREAS, Municipal Code Section 16.20.040 authorizes the Planning Commission to approve Tentative Parcel Map applications, with recommendations from the City Engineer, Planning Director and Staff Advisory Committee; and
WHEREAS, the Planning Commission reviewed the Project at a duly noticed public hearing on March 19, 2024. During that meeting, the public hearing was continued to May 7, 2024.

The Planning Commission further reviewed the Project at the duly noticed public hearing on May 7, 2024, at which time concerns were raised by residents of inadequate access of 444 Lierly Lane to East Cherry Lane, particularly for emergency vehicles, if the Project were to occur. During that meeting, the public hearing was continued to a date uncertain to allow the applicant time to resolve issues relating to inadequate access. The Planning Commission again reviewed the Project at a duly noticed public hearing on October 15, 2024, shortly prior to which the applicant raised new legal issues, at which time the Planning Commission continued the hearing to October 29, 2024 at which time the Planning Commission voted unanimously to deny the Project; and
WHEREAS, on November 8, 2024, the applicant filed an appeal of the Planning Commission decision; and
WHEREAS, the City Council was prepared to hear the appeal of the Project on January 14, 2025, but the applicant requested that the appeal date be extended; and WHEREAS, the City Council approved the extension of the date of appeal from January 14, 2025, as requested by the applicant; and
WHEREAS, in good faith, the City has allowed the applicant substantial time to resolve the concerns regarding inadequate access from Lierly Lane; and WHEREAS, City Staff has conducted a thorough review of the Project and the City Council incorporates the analysis of the Staff Report dated July 22, 2025, prepared by the

Page 404 of 467 ends

RESOLUTION NO.

PAGE 2
Community Development Director as part of the passage of this Resolution and relating to the same Project; and
WHEREAS, the City Council finds, after due study, deliberation, and public hearing, the following circumstances exist:

Tentative Parcel Map Findings Under Arroyo Grande Municipal Code Section 16.20.060.C:

1. The proposed tentative parcel map is consistent with goals, objectives, policies, plans, programs, intent and requirements of the Arroyo Grande General Plan, as well as any applicable Specific Plan, and the requirements of this title.

The Project is not consistent with the adopted Circulation Element , the Arroyo Grande Municipal Code, and the City’s Engineering Standards, Plans, and Policies, which state the following:
“Circulation Element. CT1-1 Standards: Streets shall be constructed in conformance with the City and State’s adopted Engineering Standards, Plans, and Policies that apply to each classification. Variations and modifications in Standards and planned alignments may be permitted with City Council approval or City Engineer / Public Works Director approval where delegated.

City Standard Specifications and Engineering Standards
Standards for Private Road – 24 feet”
The existing private road easement is 8 feet in width and does not meet the adopted constructed private road standard of 24 feet in width. The existing 8- foot wide easement would not only prevent most emergency responder vehicles from accessing the site, but would prevent several types of passenger vehicles as well. The applicant will be creating four additional parcels that will generate additional vehicle trips on an existing deficient private road. The constructed roadway does not align with the location of the easement, and utility poles, a hydrant and fences are located within the easement that further restrict vehicle access. Thus, the deficient private road will not accommodate traffic from the proposed Project in a safe manner for residents as the limited easement width compromises resident access.

Page 405 of 467 ends

RESOLUTION NO.

PAGE 3

2. The site is physically suitable for the type of development proposed.

The site is not suitable for the type and intensity of development proposed.

The proposed subdivision does not utilize a design that is compatible with the surrounding neighborhood due to providing substandard access which will affect property owners adjacent to the proposed site.

3. The site is physically suitable for the proposed density of development.

The site is not physically suitable for the proposed density of development due to providing substandard private and emergency access.

4. The design of the tentative parcel map or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

The design of the tentative parcel map was designed to minimize potential environmental impacts and is not anticipated to cause substantial environmental damage if approved.

5. The design of the subdivision or type of improvements is not likely to cause serious public health problems.

The Project proposes substandard access, therefore, the Project is likely to cause serious public health problems. The existing private road easement is 8 feet in width and does not meet the adopted constructed private road standard of 24 feet in width for a two-lane private road. The applicant will be creating four additional parcels that will generate additional vehicle trips on an existing deficient private road. Further, the physical driveway does not match the location of the easement, and utility poles are located within the easement that further restrict vehicle access.

6. The design of the tentative parcel map or the type of improvements will not conflict with easements acquired by the public-at-large for access through, or use of, property within the proposed tentative parcel map or that alternate easements for access or for use will be provided, and that these alternative easements will be substantially equivalent to ones previously acquired by the public.

The tentative parcel map will not interfere with any existing easements owned by the public at large.

7. The discharge of waste from the proposed subdivision into an existing community sewer system will not result in violation of existing requirements as prescribed in Division 7 (commencing with Section 13000) of the California Water Code.

The Project site currently has access to all necessary utilities and will continue to have access after completion of the Project.

Page 406 of 467 ends

RESOLUTION NO.

PAGE 4

8. Adequate public services and facilities exist or will be provided as the result of the proposed tentative parcel map to support project development.

The Project site has substandard access to the parcel. The substandard access affects the ability of public service vehicles and emergency responder vehicles to access the parcel. The proposal does not provide additional access facilities that would resolve the substandard access.

9. For a proposed subdivision that includes, or is adjacent to an agriculture district; the design of the tentative map or proposed improvements shall provide an adequate buffer, according to Section 16.12.170(F) and as further determined through environmental review under CEQA, to minimize potential conflicts between agricultural and non-agricultural land uses and to protect the public health, safety and welfare.

The proposed Project is not adjacent to any agricultural lands and, therefore, no agricultural buffer is proposed or required.

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

1. Finds that all recitals above are true, correct, and incorporated herein.

2. Denies Appeal Case 24-002, with the above findings, attached hereto and incorporated herein by this reference.

3. Determines that denial of the Project is exempt from environmental review under the California Environmental Quality Act (CEQA) because CEQA does not apply to the disapproval or rejection of projects by a public agency. (Pub Resources Code, § 21080, subd. (b)(5); State CEQA Guidelines, § 15270, subd. (a).). There will be no subdivision or construction as a result of the denial of this application for a subdivision, and therefore the denial 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.).

4. This Resolution shall take effect immediately upon adoption.

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

AYES:

NOES:

ABSENT:
the foregoing Resolution was adopted this 22nd day of July, 2025.

Page 407 of 467 ends

RESOLUTION 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

Page 408 of 467 ends

From: Kerry Margason
To: Patrick Holub; Brian Pedrotti
Cc: Jeanne Helphenstine ( ); bruce vanderveen
Subject: 444 Lierly Lane (MBS 22-284)
Date: Tuesday, December 24, 2024 10:11:10 AM
Hi Brian and Patrick – We are requesting an extension of 30-60 days for the Appeal hearing on this project. The applicants have retained Ty Green to help us through this process. Mr. Green would like some time to try to reach an agreement with the City that will allow the project to be approved.

As you know, some City staff are on vacation until after the first of the year and there will not be enough time to explore all the options before the January 14th hearing date.

Please let me know if you have any questions or concerns and the possibility of extending the hearing date.

Thank you,
Kerry Margason
MBS Land Surveys
(805) 594-1960
ATTACHMENT 2

Page 409 of 467 ends

ATTACHMENT 3

Page 410 of 467 ends

ATTACHMENT 4

Page 411 of 467 ends

Page 412 of 467 ends

Page 413 of 467 ends

Page 414 of 467 ends

Page 415 of 467 ends

Page 416 of 467 ends

Michael B Stanton, PLS 5702 Ofc: 805.594.1960
3559 S. Higuera Street Cell: 805.440.4215
San Luis Obispo, Ca 93401 Fax: 805.594.1966
August 7, 2024
Brian Pedrotti, Patrick Holub
City of Arroyo Grande, Community Development
300 East Branch Street
Arroyo Grande, California 93420
RE: MBS 22-284, 444 Liery Lane, Parcel Map AG 23-001
Dear Mr. Pedrotti and Mr. Holub:

Pursuant to section 16.20.050 – Standards of land divisions, subsection A.2 we are requesting an exception to the widening of Lierly Lane based on the existing road alignment and width for approximately 200 feet. Currently, Lierly Lane is a private, 8 foot wide easement, with private landowners on both sides.

The applicants have no right, title or interest in the land, other than the granted easement over the first approximately 200 feet of the existing 8 foot width and have been unable to secure additional land within that 200 feet to accommodate widening of Lierly Lane, despite several attempts to work with neighboring property owners over the past 2.5 years.

Prior to the application completeness determination, the applicants held 3 meetings with City staff, including a preapplication meeting. Lierly Lane was discussed at all 3 meetings because the applicants were having difficulty securing additional area to increase the width of Lierly and they were concerned the City would not approve the project if Lierly could not be widened. Staff agreed with the approach of taking emergency access off Myrtle, developing the interior of the project with approved standard improvements, and leaving Lierly at it’s 8 foot width. While leaving Lierly at 8 feet wide is not ideal, the project has emergency access through the adjacent Tract 2653 on the west side of the project area and the proposed development would provide additional emergency access to the existing development at the northwestern end of Lierly.

The preapplication meeting consisted of developing conditions of approval, with input from all City departments, for the parcel map. The widening of Lierly Lane was not a condition of approval.

It is understood that some neighbors have an issue with the project where it will take emergency access directly from the established emergency access easements created by Tract 2653, however these easements were required during the approval process of Tract 2653 with the intent that the area to the east of the Tract would develop.

As proposed, this project satisfies the required findings for a parcel map, as outlined in section

16.20.070 C. Findings in the City of Arroyo Grande’s (City) municipal code, and is consistent with the City Council’s resolution 4040 approving the Neighborhood Plan (Plan), including 20 foot wide roads (where applicants have control over the design of the roads), and use of the emergency access points developed in Subarea 1 of the Neighborhood Plan, specifically to provide emergency access to Subarea 2 (Looney and other properties).

ATTACHMENT 5

Page 417 of 467 ends

Brian Perdotti; Patrick Holub
August 7, 2024

Page 2 of 2 ends

The project is consistent with the City’s General Plan Land Use and Housing Elements. In fact, the adopted Housing Element identifies this property on the Housing Opportunity Sites Inventory Map, Figure 4-1, as an underutilized parcel that could realistically provide an additional 4 dwelling units, to be counted towards City’s Regional Housing Needs Allocation (RHNA). Based on the General Plan Annual Report of 2022, the City still needs approximately 200 of the State’s allocation of 291 above-moderate dwelling units.

While the applicants continue to speak with neighboring property owners, it is unlikely that additional property will be available for the widening of Lierly Lane and we respectfully request an exception to the requirement.

Thank you,
/s/Kerry Margason
Kerry Margason
Planner
Cc: Jeanne Helphenstine
Bruce Vanderveen
File

Page 418 of 467 ends

ATTACHMENT 6

Page 419 of 467 ends

APPEAL TO THE CITY COUNCIL OF THE

CITY OF ARROYO GRANDE
Date
Name and Address of Appellant
Appeal of
Case No.

Approved/Denied by on
Date
Reason for Appeal
Receipt No.

Signature
Mailing Address
Telephone
Fee - $1,163
Date
___
Director of Legislative and Information Services/City Clerk November 8, 2024
Bruce Vanderveen; Jeanne Helphenstine;
P.O. Box 502, Arroyo Grande, CA 93421
Planning Commission's denial with prejudice of TPM AG23-001 Planning Commission (PC) October 29, 2024
PC denied the project with prejudice based on access constraints. When the project applicants discussed the project with staff, prior to filing the application, Staff sent an email dated August 3rd, 2023 stating Lierly would not have to be widened. It was determined that with the use of the public emergency access easements off Myrtle, the project could move forward without widening Lierly at this time. The project as designed is consistent with the General Plan and the Housing Element. Applicants would not have pursued the project if not for the Aug 3rd 2023 determination by staff. /s/Kerry Margason, MBS Land Surveys
3559 S. Higuera Street, SLO, 93401
(805) 594-1960

Page 420 of 467 ends

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 10.a. – July 22, 2025 City Council Meeting
Continued Public Hearing to Consider a Resolution Denying Appeal Case 24-002; Location – 444 Lierly Lane; Appellant – Bruce Vanderveen
DATE: July 22, 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
Director of Community Development
City Attorney
City Website and Public Review Binder
Enc

Page 421 of 467 ends

Page 422 of 467 ends

From: Susan Evard
To: public comment
Subject: 7/22 Agenda item 10a, 444 Lierly Lane
Date: Tuesday, July 22, 2025 9:55:45 AM
Dear City Council Members,
I live around the corner from the proposed development at 444 Lierly Lane. I am writing to express to support for the staff recommendation to deny the project for the following reasons, among others:

1. There is no existing public road access to the proposed development.

2. The proposed Emergency Access is on a private driveway on Myrtle Dr. This is a narrow, private driveway, not a road.

3. “Dirt Cherry” is in dire need of paving and improvements to accommodate the current number of cars driving to the existing housing, much less handling a significant increase in traffic.

I am fully supportive of adding much needed housing to our community. However, I feel strongly that any new development should follow City codes regarding road width, circulation, paved streets, as well as, installing curbs and gutters. It is essential for public safety and long term development. The current proposal does not meet those standards and so I urge you to deny the application.

Sincerely,
Susan Evard

Page 423 of 467 ends

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Supplemental Information
Agenda Item 10.a. – July 22, 2025 City Council Meeting
Continued Public Hearing to Consider a Resolution Denying Appeal Case 24-002; Location – 444 Lierly Lane; Appellant – Bruce Vanderveen
DATE: July 22, 2025
Attached is additional public comment received prior to 2 p.m. for the above referenced item.
cc: City Manager
Assistant City Manager/Public Works Director
Director of Community Development
City Attorney
City Website and Public Review Binder
Enc

Page 424 of 467 ends

From: Raciel Catacutan <[email protected]>
Sent: Monday, July 21, 2025 12:43 PM
To: Caren Ray Russom <[email protected]>
Cc: Ty Green <[email protected]>; Isaac Rosen <[email protected]>; Brian Pedrotti <[email protected]>; Jim Guthrie <[email protected]>; Jamie Maraviglia <[email protected]>; Aileen Loe <[email protected]>; Kate Secrest <[email protected]>
Subject: July 22 Agenda Number 10 a./Tentative Parcel Map 23-001 IRONSCALES couldn't recognize this email as this is the first time you received an email from this sender [email protected]
Good Afternoon Mayor Russom:

On behalf of Thomas "Ty" Green, please see attached correspondence dated today's date regarding the above-entitled matter.

Thank you,
Raciel Catacutan
Legal Assistant to Thomas D. Green & Natalie Frye Laacke Adamski Moroski Madden Cumberland & Green LLP
All Mail: PO Box 3835, San Luis Obispo, CA 93403-3835
Location/Deliveries: 6633 Bay Laurel Place, Avila Beach, CA 93424 Main: (805) 543-0990
Fax: (805) 543-0980
Email: [email protected]
www.ammcglaw.com
This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information.

Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by the reply email and destroy all copies and the original message. If you are the intended recipient, please be advised that the content of this message is subject to access, review and disclosure by the sender's Email System Administrator.

Page 425 of 467 ends

ADAMSKI MOROSKI MADDEN

CUMBERLAND & GREEN LLP

ATTORNEYS AT LAW
Post Office Box 3835  San Luis Obispo, California 93403-3835 T 805-543-0990  F 805-543-0980  www.ammcglaw.com
July 21, 2025

VIA ELECTRONIC MAIL
The Honorable Caren Ray Russom
Mayor, City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Email: [email protected]
Re: Tentative Parcel Map 23-001
July 22 Agenda Number 10 a.

Dear Mayor Russom and members of the City Council:

This firm represents Jeanne Helphenstine and Bruce Vanderveen, owners of the property located at 444 Lierly Lane. Ms. Helphenstine and Mr. Vanderveen are the applicants for Tentative Parcel Map 23-001 in which they seek to create a four-lot subdivision with a remainder parcel over a 1.31-acre site. There are three points of access to the subject property. The first is from Cherry Avenue along the unpaved road which has traditionally been referenced as Lierly Lane. Lierly Lane would serve as primary access. There are two other access points that would provide emergency access by way of two 20-foot access roads from Myrtle Street to the boundary of the subject property. These emergency roads were dedicated to the City as a condition of approval for Tract 2653. Both are shown on the Tract Map and both were obviously intended to provide emergency access for the subject property and, ultimately, for the five other residences who also use Lierly Lane for access. Attached as Exhibit A is an aerial photograph depicting the subject property, the three access points and the five residences whose sole access is over Lierly Lane.

Processing of this application has been delayed because of issues relating to access. These issues have been extremely frustrating for the property owners because, prior to purchasing the property, they met with City Staff in a pre-application meeting to make sure that the existing access was adequate to support the proposed subdivision. The result of that meeting is set out in an August 3, 2023 email from Patrick Holub a copy of which is attached as Exhibit B. The relevant portion of that email reads as follows:
“I was able to meet with our Staff Advisory Committee today and we came to the conclusion that proposed access will be sufficient with the access point from Myrtle being used only for emergency access… Private access will continue to be from East Cherry. The portion of the street

Page 426 of 467 ends

Page 2 ends

July 21, 2025
(“Lierly Lane”) out of your client’s control may stay at the existing width, however the road will need to be widened to 16’ along the project frontage.” (Emphasis added)
In reliance on the August 3 email from Mr. Holub, Ms. Helphenstine and Mr.

Vanderveen closed escrow on the subject property. When their application first came to the City Planning Commission, the Staff Report accurately reflected the position in Mr.

Holub’s August 3 email regarding access and recommended approval. At that point, however, residents of Tract 2653 objected to the use of the emergency access roads despite those emergency access roads having been a condition of approval for their development and were clearly shown on their tract map. Nevertheless, those objections seemed to have some effect on both the Planning Commission and ultimately, Planning Staff. The result is that, although there was absolutely nothing changed from the pre-application meeting, City Staff suddenly raised objections regarding access that are directly contrary to the August 3 email on which the applicants relied. In short, access that had been acceptable on August 3, 2023, suddenly became inadequate. There seems to be no justification whatsoever for this change of position except in response to the neighboring property owners who did not want to honor their obligation to provide emergency access. Suddenly, without any legitimate explanation, Lierly Lane became too narrow, and, for some unstated reason, use of the dedicated emergency access roads was taken off the table.

Obviously, the property owners are concerned about the damage they will incur because of the City’s arbitrary about-face and refusal to exercise rights over the existing emergency access roads in Tract 2653. Nevertheless, rather than argue about the legal merits and the potential for this matter to eventually enter the legal arena, Ms. Helphenstine and Mr. Vanderveen, for now, have chosen to take a broader look at the Lierly Lane, Cherry Avenue and Tract 2653 situation and attempt to come up with a solution that will benefit everyone. With the City’s cooperation, which will come at no cost to the City, we have come up with just such a solution.

In considering the solution, we consider the four specific issues existing in the immediate area that should be of significant concern to the City:

1. Lierly Lane. Lierly Lane, at least ostensibly, provides primary and legal access for five existing residences and the proposed subdivision. Lierly Lane was created in 1892 by a handwritten deed which contains a legal description of the road. (Exhibit C) Lierly Lane, which is eight feet in width, seems to have been created with horse and buggy travel in mind. There is no record that Lierly Lane has been enlarged or that its original location has been moved.

Page 427 of 467 ends

Page 3 ends

July 21, 2025
The problem is that Lierly Lane, as described in the deed, is not the actual road providing access to the existing properties. In fact, the eastern boundary of Lierly Lane is actually the western boundary of the existing access road. Lierly Lane itself is unusable without significant expense because the City has constructed a fire hydrant directly in the middle of Lierly Lane at the Cherry Avenue junction. The postal service and PGE have also constructed their own improvements with the deeded roadway, making Lierly Lane, as deeded, impassable. In short, there is no usable deeded access for the five homes that have been constructed along Lierly Lane and for which the City has issued building permits. (Exhibit A)
With Lierly Lane completely unusable, somehow over the years, the City and the property owners have simply created an alternative access road alongside the deeded portion of Lierly Lane. That road is located almost entirely on the Estes property located to the east of Lierly Lane. (Exhibit A). To our knowledge, there is no recorded or dedicated right allowing either the City or the Lierly Lane property owners to use the existing road.

The problem this presents is obvious. Both the City and the existing property owners have no perfected legal access. Therefore, it would be possible tomorrow for the owner of the Estes parcel to construct a fence across or on a part of the existing road and render it unusable and creating a safety hazard for City residents and potential liability for the City. Certainly, this could be remedied in the short run if the City files a quiet title action and seeks an injunction to restore use of the road. But this approach has two drawbacks. The first is cost. Prosecuting a quiet title action is costly and time consuming.

The second problem is the ultimate scope of use of the existing road after the quiet title action. It is certainly possible that a court would find a public dedication but only to the extent of historical use. In short, while there is a partial solution to this problem which, after significant time and court costs, will likely result in deeded access. However, that access does not address the fire safety issues which exist even with the use of the current access road.

2. Fire Safety. Even assuming a legal right is acquired to use the existing access road, the situation will still be inadequate to address current fire safety issues. We retained Rob Lewin, former Fire Chief for CalFire, to conduct a site visit and evaluate the current situation. (See Exhibit D) Mr. Lewin’s opinion is that the current width and configuration of the existing access road presents a significant risk to life and property and must be corrected in the interest of public safety.1
The responsibility to make this
1 We refer to the road which is actually in use and not the unusable Lierly Lane. Obviously, the deeded portion of Lierly Lane meets no fire safety standards.

Page 428 of 467 ends

Page 4 ends

July 21, 2025
correction lies with the City which has issued building permits for five residences that have inadequate fire safety access.2

3. Tract 2653 Objections. We want to be clear that the residents of Tract 2653 have no grounds to complain about the use of the two emergency access roads through their development. Those access roads were part of the conditions of approval for the Tract and are clearly shown on the map. Further, given that emergency access, by definition, is rarely used, one would question whether the residents’ concerns are, at heart, a veiled attempt to simply stop development on the neighboring property. However, taken at their word, it is obvious that they misapprehend that emergency access roads are seldom used.

Nevertheless, even though the residents’ objections are unfounded, if the City accepts our suggestion as set out below, the residents will have nothing to complain about. If Lierly Lane access is adequate, chances of emergency access ever being used are virtually nil. It is difficult to imagine a condition under which there is a need to take emergency access through Tract 2653. In fact, with adequate access through Lierly Lane, would City Fire even require Tract 2653 emergency access as a condition of approval of the proposed subdivision?

4. Fairness to Applicants. We understand that mistakes are made and believe that the August 3, 2023 email was sent by the City in good faith. We have no intent to throw City Staff under the proverbial bus. That said, however, if the situation is not adequately addressed, the parties who stand to suffer because of the City’s mistake are the property owners who relied on the City’s representation. Place yourselves in the applicants’ shoes and ask if you would have done anything different than they did. In considering purchasing and developing the property, the applicants recognized that access could be an issue. Acting in a prudent manner, they met with the City Planning Staff to determine whether there would be sufficient access for their proposed development. City Staff, also acting prudently, took the proposed access to the Staff Advisory Committee and the City Fire Department to review the access issues in more detail. The result was the August 3, 2023 email in which City Staff concluded that there was no issue with project access. Only after undertaking this process, one that the City itself encourages through pre-application meetings, did the applicants decide to invest in purchasing the subject 2 We recognize that at least some building permits were issued when Fire Code requirements were less stringent. This fact, however, does not absolve the City of responsibility to make that correct particularly when, as will be discussed below, there will be no cost to the City.

Page 429 of 467 ends

Page 5 ends

July 21, 2025
property. Now, they are being told “oops”, that City Staff was simply wrong and that their investment, prudently made after consulting with the City, is worth only a small fraction of what they paid. There is no question that, left unresolved, Ms. Helphestine and Mr.

Vanderveen are the victims here.

Moreover, in some respects, City Staff was actually correct. Based on the conditions existing on August 3, 2023 and today, we believe that the access is adequate.

This is because, as Planning Staff and City Fire believed when reviewing the preapplication, there is adequate access to the project site considering the existing access road and the two 20-foot dedicated emergency through Tract 2653. The problem is that, despite having full knowledge of the emergency access roads, the residents of Tract 2563 don’t like it. It seems that, because of the objections of the residents of Tract 2653, it seems that the City is unwilling to allow the use of the very emergency access roads they required as a condition of approving Tract 2653 to address the very problem we now face. Such is the nature of politics, but it is patently unfair that the burden of pleasing the Tract 2653 residents, who again purchased their properties with full knowledge of the emergency access roads, falls on the shoulders of the applicants.

Because we have a very simple solution, set out below, to all four of these problems, we will refrain from making an argument as to the potential liability of the City if the present project is denied. Instead, we focus on a solution that solves all four problems without illegally impacting the rights of property owners.

Solution. It is clear that the solution to the problems presented is for the City to take action to (i) “replace” the unusable Lierly Lane with a dedicated road to serve the existing residents and proposed subdivision; (ii) create an access road that meets fire safety requirements, protects existing and future residents and protects the City from liability for past approvals; (iii) render the need to use the emergency access roads through Tract 2653 thereby addressing the stated objectives of those residents; and (iv) allow Ms. Helphenstine and Mr. Vanderveen to complete the proposed subdivision in a manner consistent with both the representations made by the City and the City Municipal Code and to honor the legitimate, realistic and reasonable investment backed expectations of the property owners when they purchased the property.

In practical terms, this solution requires the acquisition of a small area along the boundary of the Estes property. The vast majority of the area to be acquired is almost

Page 430 of 467 ends

Page 6 ends

July 21, 2025
certainly already encumbered by the existing road either through public dedication or prescriptive rights. That portion of the acquisition will have no physical impact on the Estes property; the road is already there. The remainder of the property to be acquired is a 4-6 foot strip to widen the existing road, which as set forth below, will have an insignificant impact on the Estes property.

There are two ways that the necessary property could be acquired in the near future. First, the applicants could privately acquire the property and dedicate it to the City.

The applicants are perfectly happy to do so but have not been able to gain the cooperation of the property owner, Ms. Estes. It’s not that Ms. Estes, an elderly absentee landlord, necessarily says no. (In fact, as we note below, the acquisition would benefit her property).

Rather, it seems more in the realm of “please don’t bother me”.

The second path to acquisition is for the City to acquire the property either in lieu of eminent domain or, if necessary, through the exercise of eminent domain. We fully understand and respect the City’s long-time reluctance to exercise the power of eminent domain for the benefit of another property owner. However, that is not the case here.

While certainly the acquisition of the small strip would benefit applicants, it would also provide a series of public benefits by establishing a road that everyone, including the City, thought already existed and, more important, creating a safe ingress and egress point for existing and future residents and the first responders serving those residents. Moreover, it would alleviate the concerns of Tract 2563 residents regarding use of the dedicated emergency access roads. This is precisely how eminent domain should be used. In fact, much of the traffic circulation throughout the County and State was acquired through the exercise of eminent domain. In fact, everyone reading this letter has traveled, in the last 24 hours, over a road, likely many roads, acquired through eminent domain.

We also want to emphasize that the owner of the Estes property would be compensated for the acquisition of her property as required by the US and State Constitutions and the statutory eminent domain law. We note that, on top of the compensation to be paid to Ms. Estes, the acquisition would actually benefit her property in a number of ways. First, in its current form the Estes property has a cloud on its title because of the undocumented access road. Until that situation is rectified, neither Ms.

Estes, her successors nor the City knows the exact status of the access road. Completing the acquisition and establishing the road with proper legal documentation solves that problem for her and the public. Second, Ms. Estes’ property is recognized in the

Page 431 of 467 ends

Page 7 ends

July 21, 2025
neighborhood plan as supporting future division and development. It is almost certain that somewhere in the future there will be an application to subdivide and develop the Estes’ property. If that happens, the City will undoubtedly condition any such approvals on the dedication of the very portion of her property which we urge the City to now acquire. If that portion of the property is acquired by eminent domain now, Ms. Estes will receive some compensation whereas, in the future she will receive none.

It would be unwise of the City to prolong solving the current series of problems by waiting for a development application on the Estes property. It seems apparent that Ms.

Estes is not interested in becoming a developer now and, wishing her many more years, it might be many years before there is any application. In the interim, the listed problems persist and place the City in a vulnerable legal position.

Moreover, the acquisition would have virtually no impact on the use or enjoyment of the Estes property. Right now, there is a single residence located on the property which is well removed from the existing access road. Adding 4-6 feet of width on this lightly traveled road will have no significant impact on the Estes’ property. The status quo of the property will be virtually unchanged. (Exhibit E) Finally, the solution to these problems will be at no cost to the City. The applicants are willing to pick up the costs of acquiring the area required to make Lierly Lane safe and viable.

Request. We request that the City approve the proposed subdivision with the condition that the offsite area (Lierly Lane) be acquired and dedicated to public use. Under the Subdivision Map Act, if the applicant cannot acquire the property, the City would be in a position to either waive the offsite improvements or exercise the power of eminent domain to acquire those improvements. (Government Code Section 66462.5). We would certainly not expect a waiver of the conditions, so eminent domain, at the applicant’s expense, would follow. Our real hope would be that, once this process is in place, Ms.

Estes will focus her attention on the matter and we will be able to reach an amicable solution.
[SIGNATURE ON FOLLOWING PAGE]

Page 432 of 467 ends

Page 8 ends

July 21,2025
Respectfully Subm itted,ADAMSKI MOROSKI MADDENCUMBERLAND & GREEN LLP THOMAS D. GREEN
Attachments as referenced
Cc: Kate Secrest, Mayor Pro Tem
Aileen Loe, CouncilpersonJamie Maraviglia, CouncilpersonJim Guthrie, Councilman Brian Pedrotti, Community Development DirectorIssac Rosen, City Attorney

Page 433 of 467 ends

EXHIBIT A

Page 434 of 467 ends

E.-.
nderveen Application

Page 435 of 467 ends

EXHIBIT B

Page 436 of 467 ends

From:
lo:

Cc:

Subject:

Date:

Attachments:

Patrick HolubKerrv Maroasonbruce vanderveenRE: Lierly Access Thursday, August 3, 2023 2:08:54 PM
imaoe002.onoemaillooo 190eb98f-3dbf-4ac8-a0d6-5fl78edoba4d1111111111111111111111111111111111111.on9 Importance: High
Kerry, I wanted to provide an updated regarding access and utilities for 444 Lierly LaneI was able to meet with our Staff Advisory Committee today and we came to the conclusion that the proposed access will be sufficient with the access point from Myrtle bein3 used only for emergenry access with gated access and FCFA being provided a key to the gate. Private access will continue to be from East Cherry. The portion of the street out of your client's control may stay at the existing width, however, the road will need to be widened to l-6' along the project frontage.

Regarding sewer, our Utilities Manager confirmed that no sewer mains will need to be extended.

Connecting laterals at the manholes in the emergency access roads will be sufficient. We will neec to verify that there are easements from each of the properties to the connection points. We would a so like to obtain a public sewer easement through the portion of the fire department road to benefit future development on the east side of Lierly. lf future development proposals come in, they would be able to use the easements to extend the main at that time. We will also want to see the existing home connected to the sewer, with any necessary easements dedicated rn the map.

Give me a call if you would like to discuss any of this. lf not, l'll start putting the draft conditions ofapproval together and should be able to send that your way next week. Thank you, CITY OF Potrick Holub
Associate Planner
Community Development, City of Arroyo Grande
Tel: 805-473-5426 | www.orroyogronde.org
300 E. Branch St I Arroyo Grande I CA | 93420
City Hall Business Hours: M-Th B;00 am - 5:00 pm; Fridays g:00 am - 12:00 pm The information contained in this emait pertains to City busrness and is inten,Jed sotely forthe use of th= irtdividual or entity to whom f ls addresse d. If the reader of thrs messa ge is not an intended recipient, o; the employee or agent responsible for delivering the message to the intended recipient and you havereceived fhis message in error, p/ease advise the sender by repty email or phone and detete the /nessage. Please note that email correspondence with the City of Arroyo Grande, atong with attachmer.ts,may be subiect to the California Public Records Act, and therefore may be subject to disclosure unlessothenuise exempt by law.

Page 437 of 467 ends

EXHIBIT C

Page 438 of 467 ends

|}
ll
i,. I
ii
' ^': :lt\ :\"
ri
lI
llrt ,'t . {t ,,rl ilx I -11 , l;i
lL
t.,
i
,ll
' . ,[ ' ll: r:lli ilf
t .._.@ ll
'l " l:." ' '[,' l]
n -u |
o il
il U,t I
''.,
r 'l
':|l t\ " tll
r ''Jl
.r,l
Ilr
'll:l
x
dI "
t
""lv$s
vryvrvfu F *v@ n'7'r-n7""'o a: -
'4
ryLry"
..r'au?-712e .V'24)

Page 439 of 467 ends

DEEDS BOOK
17 PAGE
C
ii
.1
_)l
)jji- 'I
i
,i
11iI'
t;
o.
'i
!
'i
it. tt
l:i
:
!ill ,tiltii
D
il
i!'ir
i!
1 't
it:!
'l
:i.
i;-
.li
.il
'Ii!
"t
t
.t
,it
I
i
!
n.
,!:
ull'
il
lt
I
,{
1 ti
I
-4/-L, -l-zu
.iA,u'4t
l:
il'
itl
It' Page 440 of 467
(i €
SEAL. a-/*'u
4Le./.rd, art *L rc4.a.?.
14,
G.
t.,e
,/
[,il
:,1
il.'
!il
t'
li
1 lt I
,,iil "ti .il
I "rt
il'
rt' Page 441 of 467

EXHIBIT D

Page 442 of 467 ends

R Resolute Associates LLC FROM VISION TO ACTION
July 16, 2025
Ty Green, Attorney at LawAMMCG Law
6633 Bay Laurel Place
Avila Beach, CA93424
Subject: Steele Subdivision, Parcel #007-571-011, Fire Access Road, Leirly Lane, Arroyo Grande, CA
Dear Mr. Green,
As the Fire Safety Specialist and Principal at
Resolute Associates I have done an analysis of
Leirly Lane to determine what improvements
would be needed to meet fire regulation
requirements for the current and future
development accessed by Leirly Lane.

Backgroundln conducting the analysis, I made a site visit and reviewed parcel data and easement maps
for the six parcels that are accessed by Leirly
Lane off E Cherry Road. I observed that there
are eight homes on the six parcels thatcurrently utilize the existing approximate 14- to 18-foot-wide gravel road. This road is not
located on the existing antiquated 8-foot road
easement that runs parallel to the gravel Leirly
Lane which does not have an easement or aroad agreement, nor is the road a City publicroad. ,r,
a2
Visibly located above ground in the center of the 8-foot road easement are a PG&E distribution powerline that runs the length of Lerily Lane, a single City fire hydrant near the intersection of Leirly Lane and E Cherry Road, and a USPS community delivery mailbox also at theintersection.

There are currently eight homes located on the six parcel and the Steel Property is proposing a subdivision with four additional lots. As stated, the current access road is on private property with no known road maintenance agreements or easements. The road does not appear to have any discernable grade and would be considered flat. The road length from E. Cherry Rd. to the last driveways is under approximately 450 feet. The existing gravel road appears to have good compaction and could possibly be considered an all-weather road. The road has been utilizedas the primary access since at least March 1, 1959, according to the status date on the County parcel assessment information. 1
https:i/propertvinquirvportal.slocountv.ca.qov/#/propertv-inquirv?q=00757101 1 i",
.t^
'14^
((\
o
,(4
.-t-"
1332 Pismo Street, San Luis Obispo, CA 93401

Page 443 of 467 ends

I am unaware of the circumstances that created a private road outside of the recorded easement and why the road easement contains utilities that would preclude the use of theeasement as the primary road location.

Fire Code Requirements
fhe2022 California Fire Code has been adopted with amendments by the City of Arroyo Grande under Municipal Code Chapter 8.04.

The homes on Leirly Lane rely on this non-conforming road as their only fire apparatus access road and the City had issued several building permits since the establishment of the road, allowing the construction of most of the existing homes.

The parcels accessed off Leirly Lane are not in a Fire Hazard Severity Zone and therefore do not need to comply with the Wildland Urban lnterface fire regulations.Despite the actual fire apparatus access road being located on private property without any road agreements or easements, the fire code prohibits the obstruction of a fire apparatus access roads in any manner. Therefore, the road must remain at a minimum in its current condition until an improved road is installed that meets the current fire code requirements.

Fire Apparatus Access Road
Leirly Lane with approximate location of legal road easement and the non-conforming fire apparatus access road.

To meet the California Fire Code minimum requirements the road must have thefollowin g req u irements:

1. Required access roads from every building to a public street shall be all-weather hardsurfaced (suitable for use by fire apparatus) rightof-way not less than 20 feet in width.

Such right-of-way shall be unobstructed and maintained only as access to the publicstreet.2 2 CFC 503.2 Specifications

Page 2 of 3 ends

1332 Pismo Street, San Luis Obispo, CA 93401
' :-l 'i
R Resolute Associates LLC BRINOINO ACTION TO VISION

Page 444 of 467 ends

2. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather drivingcapabilities.3

3. No parking will be permitted on the road unless an additional I feet is provided for each side of the road that permits parking.

4. A fire apparatus turnaround is required if the dead-end road exceeds 150 feet.

5. Fire hydrants must be located on a dead-end road so that the maximum distance from any point on the road in 150 feet.

Recommendation
For the safety of both the existing homes and the proposed subdivision, it is my recommendation that the City of Arroyo Grande bring the existing non-conforming road intocompliance with the California Fire Code. This requires that all or part of the area where the non-conforming road is located be purchased through negotiation or eminent domain in theinterest of correcting the currently unsafe conditions as well as providing access to the proposed subdivision in compliance with the Fire Code. No parking signs be posted on the road. That at least one additionalfire hydrant be installed to ensure a fire hydrant is located within 150 feet at any point on Leirly Lane.

Respectfully Sub
/*
Robert LewinPrincipalResolute Associates, LLCRobertLewi n@ Resol uteAssoc. com(805) 801-35693 503.2.3 SurfaceResolute Associates LLC

Page 3 of 3 ends

1332 Pismo Street, San Luis Obispo, CA 93401 R BRINGING ACTION TO VISION

Page 445 of 467 ends

EXHIBIT E

Page 446 of 467 ends

Page 447 of 467 ends

Item 11.a.

MEMORANDUM
TO: City Council
FROM: Isaac Rosen, City Attorney
SUBJECT: First Amendment to City Manager Employment Agreement DATE: July 22, 2025
RECOMMENDATION:

Approve the First Amendment to the Employment Agreement between the City of Arroyo Grande and Matthew Downing following an oral report by the City Attorney summarizing any changes in the salaries, salary schedules or compensation paid in the form of fringe benefits consistent with the Brown Act.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The First Amendment would result in a change to the City Manager’s existing salary, but is within the range of the City’s existing salary schedule. There is sufficient funding available in the current fiscal year’s budget to absorb this increase; therefore, no additional budget appropriation is required. Future fiscal year budgets will be adjusted as needed to account for the ongoing cost of this adjustment.

BACKGROUND:

Matthew Downing (“Mr. Downing”) has served as the City Manager since January 8, 2024, in accordance with the negotiated Employment Agreement approved by the City Council on December 12, 2023 (“Employment Agreement”). The Employment Agreement provides the City Council with discretion to consider changes to City Manager compensation, among other existing terms.

Following a satisfactory performance evaluation and annual review held during a properly noticed closed session, the City Council provided direction to bring forward a First Amendment to Mr. Downing’s Employment Agreement (“First Amendment”). The First Amendment includes a merit increase to Mr. Downing’s base salary, an initial term extension by one year, and changes to when Mr. Downing’s annual performance evaluation will be held.

Page 448 of 467 ends

Item 11.a.

City Council
First Amendment to City Manager Employment Agreement
July 22, 2025

Page 2 ends

ANALYSIS OF ISSUES:

The First Amendment increases Mr. Downing’s base salary by 5% and extends his initial term as City Manager from January 2027 to January 2028. Additionally, it amends the date of Mr. Downing’s performance evaluation to on or around March of each year.

The First Amendment (Attachment 1) is to be considered by the City Council in open session and approved by formal action, following an oral report by the City Attorney pursuant to the Brown Act, Government Code Section 54953.

All other provisions from the existing Employment Agreement remain in effect, including existing fringe benefits. If approved, the effective date of the First Amendment would be July 22, 2025.

ALTERNATIVES:

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

1. Approve the First Amendment;

2. Do not approve the First Amendment and keep the existing January 8, 2024 Employment Agreement for the City Manager in effect; or

3. Provide other direction to staff.

ADVANTAGES:

The merit increase to City Manager compensation is consistent with other agencies that provide incentives for high performance, encouraging the City Manager to exceed expectations, innovate, and deliver measurable results.

Offering a competitive salary helps preserve institutional knowledge by retaining skilled staff who has valuable experience with and knowledge of local government operations.

Retention also prevents disruption and reduces costs associated with frequent turnover.

DISADVANTAGES:

No disadvantages have been identified.

ENVIRONMENTAL REVIEW:

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

PUBLIC NOTIFICATION AND COMMENTS:

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

Page 449 of 467 ends

Item 11.a.

City Council
First Amendment to City Manager Employment Agreement
July 22, 2025

Page 3 ends

ATTACHMENTS:

1. Proposed First Amendment to Employment Agreement between the City of Arroyo Grande and Matthew J. Downing

2. Employment Agreement between the City of Arroyo Grande and Matthew J.

Downing approved on December 12, 2023, effective as of January 8, 2024

Page 450 of 467 ends

65501.00200\43931020.2
ATTACHMENT 1

FIRST AMENDMENT
EMPLOYMENT AGREEMENT – CITY MANAGER
This First Amendment to Employment Agreement (“First Amendment”) between the City of Arroyo Grande (hereinafter “City”) and Matthew J. Downing (hereinafter “Employee”) (collectively, the “Parties”) is entered into this ___ day of July 2025. Except as modified in this First Amendment, the Employment Agreement, effective as of January 8, 2024, between the City and Employee shall remain in full force and effect. The parties to this First Amendment agree to the following changes:

1. SECTION 4 relating to “Term” is hereby amended to read as follows:
“4. Term. The initial term of this at-will Agreement shall be for four years from the Effective Date, through January 8, 2028 (“Initial Term”), unless terminated earlier by either party in accordance with the provisions set forth in paragraph 6. Unless either party provides notice of non-renewal to the other party on or before one-hundred twenty (120) days prior to expiration of the Initial Term as set forth in paragraph 6(d), the Agreement shall continue in effect until terminated by either party in accordance with the provisions set forth in paragraph 6.”

2. SECTION 5(a) relating to “Compensation - Salary” is hereby amended to read as follows:
“(a) Salary. Employee shall receive the base annual salary of Two Hundred Sixty-Five Thousand Six Hundred Sixty-One Dollars and Seventy-Six Cents ($265,661.76) payable on a pro-rata basis in the same manner as all full time City employees, and subject to all applicable payroll taxes and withholdings.”

3. Section 7 relating to “Performance Evaluation” is hereby amended to read as follows:
“7. Performance Evaluation. The Council will conduct regular periodic performance reviews. In or about March of each year, as close as practicable based on Council’s availability to a regularly noticed City Council meeting, the Council shall conduct an evaluation of Employee’s performance and provide guidance and direction regarding the City’s goals and objectives which Employee shall be tasked with implementing. The Council, at more frequent intervals and at times selected by the Council, can also conduct both informal and formal performance reviews and/or provide other input to Employee regarding Employee’s job performance in a format chosen by the Council. The Council can also arrange for a 360 review, in a format and at intervals selected by the Council, in order to obtain performance feedback from City staff and at the Employee’s direct reports.” (SIGNATURE PAGE TO FOLLOW)

Page 451 of 467 ends

65501.00200\43931020.2
ATTACHMENT 1
The City and Employee have duly executed this First Amendment as of the date first written above. This Amendment is effective as of the date first written above.

CITY OF ARROYO GRANDE EMPLOYEE
___________________________ __________________________
Caren Ray Russom, Mayor Matthew J. Downing
Attest:
___________________________
Jessica Matson, City Clerk
Approved as to Form:
___________________________
Isaac Rosen, City Attorney

Page 452 of 467 ends

EMPLOYMENT AGREEMENT
This City Manager Employment Agreement (" Agreement") is between Arroyo Grande City") and Matthew J. Downing (" Employee"). It is effective as of January 8, 2024.

This Agreement is entered into on the basis ofthe following facts, among others:

A. The City has a vacancy in the position of City Manager; B. The City, through its City Council (" Council"), desires to appoint Employee as the City Manager of City, and Employee desires to accept this appointment; and C. The City and Employee desire to establish specific terms and conditions relating to compensation and benefits, performance evaluations, and related matters.

BASED UPON THE FOREGOING, THE CITY AND EMPLOYEE AGREE AS FOLLOWS:

1. Employee Appointed. The City appoints and employs Employee as City Manager, and Employee accepts the appointment and employment effective January 8, 2024.

2. Duties of Employee. Employee shall perform the duties established for the City Manager by applicable State, local law, the City' s Municipal Code, the City Manager job description as it may be periodically amended, a current copy of which is attached hereto as Exhibit A, the directions ofthe Council, or as otherwise provided by law, ordinance, or regulation.
a) Full Energy and Skill. Employee shall faithfully, diligently, and to the best of Employee's abilities, perform all duties that may be required under this Agreement.

Employee agrees that Employee has a duty of loyalty and a general fiduciary duty to the City.

Employee shall devote the whole of Employee's working time, skill, experience, knowledge, ability, labor, energy, attention, and best effort exclusively to the City' s business and affairs. b) No Conflict. Employee shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or potentially in conflict with, inimical to, or which interferes with the performance of Employee' s duties.
c) Outside Activities. Employee shall not spend more than 8 hours per month in teaching, consulting, expert witness testimony, speaking, or other non- City connected business for which compensation is paid without express prior consent of the Council. Employee will take personal leave ( i.e. annual leave or management leave) for all outside activities of this nature.

3. Hours of Work. Employee is an exempt employee and is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager position. Employee does not have set hours of work, as the City Manager is expected to be available at all times during the City' s customary office hours. It is recognized that the City 65501. 00200\ 41821339. 13
ATTACHMENT 2

Page 453 of 467 ends

Manager must devote a great deal oftime to the business ofthe City outside ofthe City' s customary office hours, and to that end the City Manager' s schedule of work each day and week shall vary in accordance with the work required to be performed and in accordance with any specific direction provided by the Council.

4. Term. The initial term of this at- will Agreement shall be for three years from the Effective Date through January 8, 2027 (" Initial Term"), unless terminated earlier by either party in accordance with the provisions set forth in paragraph 6. Unless either party provides notice ofnon-renewal to the other party on or before one-hundred twenty( 120) days prior to expiration of the Initial Term as set forth in paragraph 6( d), the Agreement shall continue in effect until terminated by either party in accordance with the provisions set forth in paragraph

6. 5. Compensation.
a) Salary. Employee shall receive the base annual salary of Two Hundred Thirty Five Thousand Nine Hundred Dollars ($ 235, 900. 00) payable on a pro- rata basis in the same manner as all full time City employees, and subject to all applicable payroll taxes and withholdings.
b) Salary Adjustments. In connection with Employee' s annual performance evaluations, the Council can decide, in its sole discretion, whether to award Employee any increase in compensation. In addition, the Council has discretion to award Employee increases in compensation at other times deemed appropriate by the Council.

Employee shall be eligible to receive the same percentage of cost of living adjustment ( COLA) salary increase, if any, awarded to Management Employees. Employee shall receive any such COLA increase on the same date it is provided to Management Employees. Other than a COLA increase, Employee is not eligible to automatically receive any general salary increases or equity compensation adjustments provided to Management Employees or other City bargaining groups.

Other than as provided in this paragraph, Employee is not guaranteed any compensation increase, even with a positive evaluation or even if other City employees are provided an increase.

6. Termination and Severance Pay— At-Will Employment/ No Property Interest. Employee understands and agrees that Employee has no constitutionally-protected property or other interest in Employee' s employment as City Manager. Employee understands and agrees that Employee works at the will and pleasure ofthe Council, and that Employee may be terminated, or asked to resign, at any time, with or without cause, by a majority vote of three or more of its members.
a) Termination without Cause
1) Employee serves at the will and pleasure of the Council and may be terminated with or without cause, with or without advance notice, at any time. Nothing in this Agreement shall in any way affect the Council' s right to terminate the employment of Employee with or without cause, with or without advance notice, at any time. 2 65501. 00200\ 41821339. 13

Page 454 of 467 ends

2) In the event Employee is terminated by the City without cause during the term of this Agreement, at which time Employee is willing and able to perform Employee' s duties under the Agreement, the City shall provide Employee with: ( 1) six( 6) months' salary; and( 2) continuation of all existing health benefits currently offered to Employee, for the lesser of six ( 6) months, until Employee finds other employment, or the remaining months in the term of the Agreement, whichever occurs first. ( The salary and benefits shall be referred to collectively as " Severance Pay.") In no event shall the amount of Severance Pay exceed the value of six (6) months' salary plus benefits. The intention is for this section to be interpreted and applied in a manner that is consistent with California Government Code sections 53260 and 53261. Employee' s eligibility for Severance Pay is expressly conditioned upon Employee' s execution of( i) a waiver and release of any and all of Employee' s claims against City and related parties; and( ii) a covenant not to sue, in a form prepared by the City. All normal payroll taxes and withholdings as required by law shall be made with respect to any amounts paid under this paragraph. Employee expressly agrees to provide notice to the City within two 2) business days of accepting employment elsewhere, and the City' s obligation to pay for the continuation of any health benefits to Employee shall terminate upon Employee' s acceptance of such alternative employment.
3) Notwithstanding any provisions in this Agreement to the contrary, the City shall not terminate Employee without cause for a period of one hundred twenty 120) calendar days immediately following a general election unless ( 1) the City has cause to terminate under paragraph 6( b)( 1) or( 2) Employee is convicted for abuse of office or position as defined in Government Code section 53243. 4.
b) Termination for Cause
1) In the event that it is determined that the Employee has been terminated for cause, the Employee shall not be entitled to any Severance Pay. Termination shall be " for cause" if Employee: ( a) willfully breaches this Agreement; (b) habitually neglects their duties as required to be performed under this Agreement; ( c) is convicted, or pleads guilty or nolo contendere, to any felony or a misdemeanor involving dishonesty or moral turpitude; ( d) refuses or fails to act in accordance with any legal directive or order of the Council; or( e) acts in bad faith and to the detriment of the City.
2) In the event Employee and this Agreement are terminated for cause, Employee' s sole remedy shall be a judicial action in declaratory relief to determine whether there was substantial evidence of cause. If the court determines there was not substantial evidence, Employee shall receive the severance pay provided in this Section, but no other damages.
c) Resignation
1) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from the City Manager position, subject only to the provisions set forth in this Agreement. 3 65501. 00200\ 41821339. 13

Page 455 of 467 ends

2) In the event Employee resigns from their position with the City, then Employee shall provide the Council sixty (60) days' advance notice, unless the Parties agree otherwise. In the event that Employee resigns, Employee shall not be entitled to any Severance Pay, but shall be compensated for accrued wages under the same terms and conditions generally applicable to City employees.
d) Non-Renewal. In the event either party provides notice of nonrenewal in accordance with paragraph 4, Employee shall not be entitled to any Severance Pay, but shall be compensated for accrued wages under the same terms and conditions generally applicable to City employees.

7. Performance Evaluation. The Council will conduct regular periodic performance reviews. On or about the end of the first six months of Employee' s employment based on Council' s availability), the Council shall conduct an evaluation of Employee' s performance and provide guidance and direction regarding the Council' s goals and objectives which Employee shall be tasked with implementing. Thereafter, in or about May of each year with the first annual review to be conducted in or about May 2025), the Council shall conduct an evaluation of Employee' s performance and provide guidance and direction regarding the City' s goals and objectives which Employee shall be tasked with implementing. The Council, at more frequent intervals and at times selected by the Council, can also conduct both informal and formal performance reviews and/ or provide other input to Employee regarding Employee' s job performance in a format chosen by the Council. The Council can also arrange for a 360 review, in a format and at intervals selected by the Council, in order to obtain performance feedback from City staff and the Employee' s direct reports.

8. Benefits.
a) Health and Welfare Benefits. Employee will be eligible for all regular health and welfare benefits provided by the City in accordance with the City as further described in the City' s Personnel Policies and Procedures (" Personnel Policies"). b) Ca1PERS Retirement Benefits. Employee will participate in Ca1PERS, with employee and employer contributions in compliance with applicable law, the City' s contract with Ca1PERS, and the City' s Personnel Policies. c) Deferred Compensation. As part of Employee' s annual compensation, City agrees to contribute to a Section 457 deferred compensation plan the amount of Two Thousand, Two Hundred dollars ($ 2, 200. 00) annually, payments to be equally divided in each pay period.
d) Life Insurance. The City agrees to pay for a term life insurance policy in the face amount of One Hundred and Fifty Thousand Dollars ($ 150, 000. 00) on Employee' s life with a carrier selected by the City. Employee shall designate the beneficiaries of the policy. Employee shall also be entitled to participate in any group life or disability insurance programs provided by the City for management employees. 4 65501. 00200\ 41821339. 13

Page 456 of 467 ends

e) Equipment and Allowance. The City agrees to provide Employee with a portable computer for City business. The City will provide Employee with a monthly cellular telephone allowance in accordance with City policy. f) Automobile Allowance. The City shall provide Employee with an automobile allowance of Five Hundred Dollars ($ 500. 00) per month, added to Employee' s wages on a monthly basis as taxable income. This allowance is intended to compensate Employee for all automobile expenses and mileage incurred in connection with the performance of City duties.

9. Leave and Other Benefits. In addition to the benefits specified in paragraph 8, Employee shall receive the following benefits. a) Annual Leave; Holidays. Employee shall accrue annual leave in accordance with the policy applicable to Management Employees. At the commencement of employment, Employee is credited with 13 years of service credit and will earn 33 days ( 264 hours) per year( accrued pro rata on a per pay period basis). Subject to any policy change applicable to Management Employees, once Employee completes two years of service with the City, Employee will be credited with a total of fifteen( 15) years of service and shall earn annual leave at the rate of 34 days ( 272 hours) per year( on a pro rata basis each pay period). Upon the Effective Date of this Agreement, Employee is provided a one-time grant of fifty-six( 56) hours of Annual Leave. Use and maximum accrual of Annual Leave are governed by the terms applicable to City Management Employees. Employee is also eligible for paid holidays under the same terms and conditions applicable to Management Employees. b) Management Leave. Employee will be provided with forty( 40) hours of management leave each calendar year. Hours do not accumulate from year to year. At the beginning of each calendar year, Employee' s management leave bank will be replenished to a total of forty ( 40) hours. At the commencement oftheir employment, Employee will be provided with a pro rata amount of management leave to use during the remainder of 2024. Any management leave remaining upon separation of employment will not be cashed out.

10. Payment of Expenses of Employment. The City shall pay the following usual and customary employment expenses.
a) The cost of any fidelity or other bonds required by law for the City. b) The cost to defend and indemnify Employee in accordance with the California Government Claims Act( Government Code § 810 et seq.). c) The City will provide a reasonable budget for dues for Employee' s full membership in professional organizations associated with the office of City Manager. The City will allow Employee reasonable time away from the City to participate in the annual conferences of these organizations.
d) Reimbursement for expenses related to travel to and attendance at conferences or other events ( i.e. out- of-town meetings, professional seminars, etc.), reasonably 5 65501. 00200\ 41821339. 13

Page 457 of 467 ends

necessary for Employee' s professional development and the proper discharge of City Manager duties, is governed by the City' s expense reimbursement policy. e) The City will not reimburse Employee for any expenses related to membership in service clubs.

11. Miscellaneous.
a) Notices. Notices given under this Agreement shall be in writing and shall be:
i) served personally; or
ii) delivered by first- class United States mail, certified, with postage prepaid and a return receipt requested; or
iii) Sent by Federal Express, or some equivalent private overnight delivery service.

Notices shall be deemed received at the earlier of actual receipt or three ( 3) days following deposit in the United States mail, postage prepaid. Notices shall be directed to the addresses shown below, provided that a party may change such party' s address for notice by giving written notice to the other party in accordance with this subsection.

CITY:

City ofArroyo Grande
Attn: Mayor
300 E. Branch Street
Arroyo Grande, CA 93420
Phone: 805- 473- 5400
EMPLOYEE:

Matthew Downing
300 E. Branch Street
Arroyo Grande, CA 93420
b) Compliance with Government Code §§ 53243, 53243. 1, & 53243. 2.

If Employee is convicted of a crime involving an abuse of her office or position, all of the following shall apply:
i) if Employee is provided with administrative leave pay pending an investigation, Employee shall be required to fully reimburse the City for such amounts paid;
6 65501. 00200\ 41821339. 13

Page 458 of 467 ends

ii) ifthe City pays for the criminal legal defense of Employee which would be in its sole discretion, as it is not generally required to pay for a criminal defense), Employee shall be required to fully reimburse the City such amounts paid; and iii) ifthis Agreement is terminated, any cash settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City or void if not yet paid to Employee.

For this subsection, " abuse of office or position" means either( 1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority, or( 2) a crime against public justice, including but not limited to a crime described in Title 7 commencing with Section 92) of Part 1 of the Penal Code. c) Entire Agreement/ Amendment. This Agreement constitutes the entire understanding and agreement between the parties as to those matters contained in it, and supersedes any and all prior or contemporaneous agreements, representations and understandings of the parties. This Agreement may be amended at any time by mutual agreement ofthe parties, but any such amendment must be in writing, dated, and signed by the parties and attached hereto. d) Attorney's Fees. If any legal action or proceeding is brought to enforce or interpret this Agreement, each party shall bear their own attorney' s fees, including any such fees and costs as may be incurred in enforcing any judgment or order entered in any such action.

Nothing in this subsection shall be read to prevent the parties from agreeing to some alternative method of dispute resolution. If such a method is agreed to, the parties shall bear their own attorney' s fees in pursuing such relief and resolution. e) Severability. In the event any portion ofthis Agreement is declared void, such portion shall be severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated.
0 Waiver. Any failure of a party to insist upon strict compliance with any term, undertaking, or condition ofthis Agreement shall not be deemed to be a waiver of such term, undertaking, or condition. To be effective, a waiver must be in writing, signed and dated by the parties.
g) Representation by Counsel. The parties acknowledge and agree that they were, or had the opportunity to be, represented individually by legal counsel with respect to the matters that are the subject of this Agreement and that they are fully advised with respect to their respective rights and obligations resulting from signing this Agreement. h) Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws ofthe State of California. Employee and the City agree that venue for any dispute shall be in San Luis Obispo County, California. 7 65501. 00200\ 41821339. 13

Page 459 of 467 ends

Arroyo Grande City CouncilJuly 22, 2025

Arroyo Grande City Council
July 22, 2025