CITY COUNCIL MEETING
AGENDA SUMMARY
Tuesday, December 9, 2025, 6:00 p.m.
In person at:
Arroyo Grande City Council Chamber
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://arroyogrande-org.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA Please click the link above to register to join the Zoom Meeting This City Council meeting is being conducted in a hybrid in-person/virtual format. Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time. Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s Website.
CLOSED SESSION:
None.
1. CALL TO ORDER
2. ROLL CALL
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Arroyo Grande Rotary Club
5. AGENDA REVIEW
5.a Closed Session Announcements
None.
5.b Ordinances read in title only
Recommended Action:
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.
6. SPECIAL PRESENTATIONS
6.a Introduction and Oath of Office - Senior Officer Black
6.b Honorary Proclamation Recognizing Fire Captain Quinlan, Engineer LoPresti, and Firefighter Vassaur
6.c Honorary Proclamation Recognizing Fire Captain Paul Quinlan Upon His Retirement from Public Service
6.d City Manager Communications
(DOWNING)
Recommended Action:
Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.
7. CITY COUNCIL REPORTS
None.
Reports are made during the Second Council Meeting each month.
8. COMMUNITY COMMENTS AND SUGGESTIONS
This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by registering and joining the Zoom meeting utilizing the link provided below. Once in the meeting, please use the “raise hand” feature to indicate your desire to provide public comment.
Click the link below to register to join the webinar: https://arroyograndeorg.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA •
After registering, you will receive a confirmation email containing information about joining the webinar.
•
Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time.
Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Please attend in person or submit your comment via email to the City Clerk by 2:00 p.m. the day of the meeting to have it included as part of the record.
The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may:
• Direct City staff to assist or coordinate with you.
• A Council Member may state a desire to meet with you.
It may be the desire of the Council to place your issue or matter on a future Council agenda.
•
Please adhere to the following procedures when addressing the Council:
• Comments should be limited to 1 minute or less.
Your comments should be directed to the Council as a whole and not directed to individual Council members.
•
Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted.
•
9. CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion.
9.a Approval of Minutes
(MATSON)
Recommended Action:
Approve the minutes of the Regular City Council Meeting of November 25, 2025, as submitted.
9.b Cash Disbursement Ratification
(VALENTINE)
Recommended Action:
Review and ratify the attached listing of cash disbursements for the period of November 1 through November 15, 2025.
9.c Statement of Investment Deposits for October 2025
(VALENTINE)
Recommended Action:
Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of October 31, 2025, as required by Government Code Section 53646(b).
9.d 2026 City Council Regular Meeting Schedule
(DOWNING)
Recommended Action:
Adopt a Resolution establishing the 2026 City Council regular meeting schedule.
9.e Selection of Council Member Maraviglia as Mayor Pro Tem (MATSON)
Recommended Action:
Appoint Council Member Maraviglia as the Mayor Pro Tem for the next one-year period, pursuant to City Council policy.
9.f City Council Appointments to Regional and Local Boards and Committees (MATSON)
Recommended Action:
Review the list of Council appointments currently serving on the various regional and local boards and committees and approve appointments for calendar year 2026.
9.g Adoption of an Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
(ROBESON)
Recommended Action:
1) Adopt an Ordinance Granting to Phillips 66, LLC a Pipeline Franchise Agreement to Construct, Operate, and Maintain Pipeline for the Transport of Oil, and Other Specified Material, in the City of Arroyo Grande; and
2) Find that adoption of the Ordinance granting Phillips 66, a pipeline franchise is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.);
9.h Award Engineering Design Services for 2025 Streets Project (ROBESON)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a professional services contract for Engineering Design Services of the 2025 Streets Project (PW 2025-01) with Pavement Engineering, Inc. (PEI), 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 awarding the contract for Engineering Design Services of the 2025 Streets Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities.
9.i Award of Water Main and Service Project
(ROBESON)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a construction contract for the Water Main and Service Project (PW 2024-04) to R. Baker, Inc. and approve a Budget Adjustment, 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 project is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 2 exemption, which applies to the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced.
9.j Agreement Amendment for Consultant Services with Miniter Harnish for the Comprehensive General Plan Update
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution authorizing the Director of Community Development to execute an amendment extending the agreement for consultant services with Mintier Harnish for the Comprehensive General Plan Update; and
2) Find that adopting a Resolution to extend the agreement is not a project subject to the California Environmental Quality Act “(CEQA”) because the amendment has no potential to
result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
9.k Adoption of an Ordinance Amending Title 16 Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units
(PEDROTTI)
Recommended Action:
1) Adopt the Ordinance amending Section 16.52.150 to Title 16 of the Arroyo Grande Municipal Code (AGMC) regarding accessory dwelling units and junior accessory dwelling units; and
2) Find that the Ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code § 21080.17.
9.l Adoption of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code Regarding Urban Lot Splits and Two-Unit Development
(PEDROTTI)
Recommended Action:
1) Adopt the Ordinance amending Sections 16.20.180 and 16.32.060 of the Arroyo Grande Municipal Code (AGMC) relating to urban lot splits and two-unit development; and 2) Find that the Ordinance is exempt from review under the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (State Guidelines Section 15060(c)(2) and 15061(b)(3)).
10. PUBLIC HEARINGS
10.a Community Development Block Grant Recommendations for Year 2026 (PEDROTTI)
Recommended Action:
1) Approve funding recommendations for the City’s allocation of 2026 Community Development Block Grant (CDBG) funds as shown in Table 1; and 2) Find that this action is exempt from CEQA, pursuant to CEQA Guidelines Section 15061 subd. (b)(3).
11. BUSINESS ITEMS
11.a Study Session on Cannabis Regulation Policy Direction (DOWNING)
Recommended Action:
1) Conduct a study session and direct staff to:
Proceed with the preparation of a local cannabis tax ballot measure (and draft tax language) to be placed on a future municipal ballot, for consideration at a future City Council meeting; and
a.
Upon passing of a tax ballot measure, proceed with drafting regulations to allow commercial retail cannabis uses and return with zoning, permit process and a b.
draft ordinance; and
2) Find that providing direction to staff to proceed to draft regulations to allow specified commercial cannabis uses and preparing a local cannabis tax measure 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).
12. COUNCIL COMMUNICATIONS
Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least two other Council Members.
13. ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date.
This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature.
City Council Meetings are streamed live on the City’s Website and recorded for replay on Arroyo Grande’s Government Access Channel 20.
Item 6.b.
Item 6.c.
1 Item 9.a.
ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL
November 25, 2025, 6:00 p.m.
Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Caren Ray Russom, Mayor Pro Tem Kate Secrest, Council Member Jim Guthrie,
Council Member Jamie Maraviglia, Council
Member Aileen Loe
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Matthew Downing,
Assistant City Manager/Public Works Director
Bill Robeson, Administrative Services Director
Nicole Valentine, Community Development
Director Brian Pedrotti, Police Chief David
Culver, Fire Chief Scott Hallett, Planning
Manager Andrew Perez, City Engineer
Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________
1. CALL TO ORDER
Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m.
2. ROLL CALL
City Clerk Matson took roll call.
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Mayor Ray Russom led the flag salute.
5. AGENDA REVIEW
Mayor Ray Russom requested to move Item 10.a. and 10.b. to after Item 12. Council Communications.
Council concurred.
5.a Closed Session Announcements
None.
2 Item 9.a.
5.b Ordinances read in title only
Moved by Mayor Ray Russom
Seconded by Council Member Maraviglia
Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.
AYES (5): Mayor Ray Russom, Mayor Pro Tem Secrest, Council Member Guthrie, Council Member Maraviglia, and Council Member Loe
Passed (5 to 0)
6. SPECIAL PRESENTATIONS
6.a Introduction and Oath of Office - Officer Roberto Pulido Chief of Police Culver introduced Officer Robert Pulido and highlighted his educational and professional background. City Clerk Matson administered the Oath of Office. A badge pinning followed.
No action was taken on this item.
6.b City Manager Communications
City Manager Downing provided updates on Operation Holiday Cheer, a Tractor-Drawn Aerial Ladder Training for FCFA, the city receiving the Government Finance Officers Association Distinguished Budget Presentation Award, the launch of a refreshed website and ADA tools, and results from the first FlashVote survey.
No action was taken on this item.
7. CITY COUNCIL REPORTS
The City Council provided brief reports from the following committee, commission, board, or other subcommittee meetings that they attended as the City’s appointed representative.
7.a MAYOR RAY RUSSOM:
1. Audit Committee
2. California Joint Powers Insurance Authority (CJPIA)
3. Five Cities Fire Authority JPA Board
4. San Luis Obispo County Mayor's Meeting
5. South San Luis Obispo County Sanitation District (SSLOCSD)
6. Other
7.b MAYOR PRO TEM SECREST:
1. Air Pollution Control District (APCD)
3 Item 9.a.
2. Homeless Services Oversight Council (HSOC)
3. South County Chambers of Commerce Governmental Affairs Committee
4. Other
7.c COUNCIL MEMBER GUTHRIE:
1. Central Coast Community Energy (CCCE) Policy Board
2. Integrated Waste Management Authority Board (IWMA)
3. REACH Economic Development Roundtable
4. Other
7.d COUNCIL MEMBER MARAVIGLIA:
1. Five Cities Fire Authority JPA Board
2. Visit SLO CAL Advisory Board
3. SLO CAL Summit
4. REACH Economic Development Roundtable
7.e COUNCIL MEMBER LOE:
1. Council of Governments/Regional Transit Authority (SLOCOG/SLORTA)
2. County Water Resources Advisory Committee (WRAC)
3. Zone 3 Water Advisory Board
4. Other
8. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from the public were Donna Evenson, and Judy Ceccetti. No further public comments were received.
Assistant City Manager/Public Works Director responded to questions from the public and Council.
9. CONSENT AGENDA
Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion.
City Manager Downing responded to questions from Council regarding Item 9.d.
Mayor Ray Russom invited public comment. Speaking from the public was Garry Schmidt. No further public comments were received.
Moved by Council Member Loe
Seconded by Mayor Pro Tem Secrest
Approve Consent Agenda Items 9.a. through 9.h., with the recommended courses of action.
4 Item 9.a.
AYES (5): Council Member Loe, Mayor Pro Tem Secrest, Council Member Guthrie, Council Member Maraviglia, and Mayor Ray Russom
Passed (5 to 0)
9.a Approval of Minutes
Approved the minutes of the Regular City Council Meeting of October 28, 2025, as submitted.
9.b Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of October 1 through October 31, 2025.
9.c Statement of Investment Deposits for September 2025 Received and filed the report listing investment deposits of the City of Arroyo Grande as of September 30, 2025, as required by Government Code Section 53646(b).
9.d FlashVote Survey Results – City Communications
Received and filed a presentation on the first FlashVote Survey results regarding City Communications.
9.e Street Closures for Holiday Parade and Jingle Bell Dash on December 7, 2025 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING STREET CLOSURES FOR THE HOLIDAY PARADE AND JINGLE BELL DASH TO BE HELD ON DECEMBER 7, 2025, AND FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)"; and 2) Found the action exempt from CEQA pursuant to Section 15304(e) of the CEQA Guidelines.
The authorization of the Holiday Parade and Jingle Bell Dash and closure of City streets is categorically exempt from the California Environmental Quality Act (“CEQA”) under the Class 4 exemption, which applies to minor public or private alterations in the condition of land, water, and/or vegetation where the project does not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. (State CEQA Guidelines, § 15304.) The Class 4 exemption applies to this project because it involves a minor temporary use of land having negligible or no permanent effects on the environment. Specifically, the project involves an eight-hour closure of certain streets and parade involving negligible to no permanent effects on the environment. None of the exceptions found in State CEQA Guidelines 15300.2 apply.
9.f Monthly Water Supply and Demand Update
Received and filed the Monthly Water Supply and Demand Update.
9.g Resolution to Accept Verizon’s Withdrawal of an Appeal of Conditional Use Permit CUP 23-006 for a Telecommunications Facility at 789 Valley Road 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE TO ACCEPT THE WITHDRAWAL OF AN APPEAL OF CONDITIONAL
5 Item 9.a.
USE PERMIT CUP 23-006 FOR A TELECOMMUNICATIONS FACILITY AT 789 VALLEY ROAD"; and
2) Found that the action is not a project subject to the California Environmental Quality Act (“CEQA”) because acceptance of Verizon’s withdrawal request has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
9.h General Plan Update Progress Report – November 2025 Received and filed a progress report on the Comprehensive General Plan Update.
10. PUBLIC HEARINGS
10.a Amendments to Title 16 of the Arroyo Grande Municipal Code Regarding Urban Lot Splits and Two-Unit Developments
This item was heard out of order.
Mayor Pro Tem Secrest presided.
Planning Manager Perez presented the Item and responded to questions from Council.
Mayor Pro Tem Secrest opened the public hearing. Speaking from the public was No Name Provided. Upon hearing no further public comments, Mayor Pro Tem Secrest closed the public hearing. Planning Manager Perez responded to questions from the public.
Moved by Council Member Maraviglia
Seconded by Council Member Loe
1) Introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING SECTIONS 16.20.180 AND 16.32.060 OF THE ARROYO
GRANDE MUNICIPAL CODE REGARDING URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS"; and
2) Find that the Ordinance is exempt from review under the California Environmental Quality Act (CEQA) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (State Guidelines Section 15060(c)(2) and 15061(b)(3)).
AYES (4): Council Member Maraviglia, Council Member Loe, Council Member Guthrie, and Mayor Pro Tem Secrest
ABSENT (1): Mayor Ray Russom
Passed (4 to 0)
10.b Amendments to Title 16 Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units
Planning Manager Perez presented the Item and responded to questions from Council.
Mayor Pro Tem Secrest opened the public hearing. Upon hearing no public comments, Mayor Pro Tem Secrest closed the public hearing.
6 Item 9.a.
Moved by Council Member Guthrie
Seconded by Mayor Pro Tem Secrest
1) Introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING SECTION 16.52.150 OF THE ARROYO GRANDE
MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS AND JUNIOR
ACCESSORY DWELLING UNITS AND FINDING THE ACTION TO BE EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE SECTION 21080.17"; and
2) Find that the proposed ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA) under Public Resources Code § 21080.17.
AYES (4): Council Member Guthrie, Mayor Pro Tem Secrest, Council Member Maraviglia, and Council Member Loe
ABSENT (1): Mayor Ray Russom
Passed (4 to 0)
10.c Amendments to Title 8 and 15 of the Arroyo Grande Municipal Code and Adopting by Reference the 2025 California Building Standard Code and Uniform Code This Item was heard before Item 10 a.
Community Development Director Pedrotti presented the Item. Fire Chief Hallett responded to questions from Council.
Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing.
Moved by Council Member Guthrie
Seconded by Mayor Pro Tem Secrest
1) Adopt an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING PROVISIONS IN TITLES 8 AND 15 OF THE ARROYO GRANDE MUNICIPAL CODE AND ADOPTING BY REFERENCE THE 2025 CALIFORNIA BUILDING STANDARDS CODE (CALIFORNIA CODE OF REGULATIONS, TITLE 24), INCLUDING THE 2025 CALIFORNIA ADMINISTRATIVE CODE, 2025 CALIFORNIA BUILDING CODE, 2025 CALIFORNIA ELECTRICAL CODE, 2025 CALIFORNIA MECHANICAL CODE, 2025 CALIFORNIA PLUMBING CODE, 2025 CALIFORNIA FIRE CODE, 2025 CALIFORNIA RESIDENTIAL CODE, 2025 CALIFORNIA ENERGY CODE, 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2025 WILDLAND-URBAN INTERFACE CODE, AND THE 1997 UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS AND 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE"; and
2) Find that it can be seen with certainty that there is no possibility that the proposed action may have a significant adverse effect on the environment, since the Ordinance merely adopts updated building and safety standards. The adoption of this Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to Sections
7 Item 9.a.
15060(c)(2) and 15061(b)(3) of the CEQA Guidelines. The adoption of the Ordinance will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
AYES (5): Council Member Guthrie, Mayor Pro Tem Secrest, Council Member Maraviglia, Council Member Loe, and Mayor Ray Russom
Passed (5 to 0)
10.d Introduction of Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
Assistant City Manager/Public Works Director Robeson presented the Item and responded to questions from Council. City Attorney Rosen responded to questions from Council.
Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing.
Renee Flores, and David Aguero, Phillips 66 Operations Manager, responded to questions from Council.
Moved by Council Member Maraviglia
Seconded by Mayor Pro Tem Secrest
1) Introduce an Ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE GRANTING TO PHILLIPS 66, LLC A PIPELINE FRANCHISE
AGREEMENT TO CONSTRUCT, OPERATE, AND MAINTAIN PIPELINE FOR THE
TRANSPORT OF OIL, AND OTHER SPECIFIED MATERIAL, IN THE CITY OF ARROYO GRANDE” with an addition to the Franchise Agreement that the City be notified should the pipeline be activated for transportation purposes; and
2) Find that adoption of the proposed Ordinance granting Phillips 66, a pipeline franchise 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.) AYES (5): Council Member Maraviglia, Mayor Pro Tem Secrest, Council Member Guthrie, and Council Member Loe, Mayor Ray Russom
Passed (5 to 0)
11. BUSINESS ITEMS
11.a Appropriate Water Enterprise Funds and Authorize an Interfund Loan from the General Fund to the Water Enterprise Fund
City Manager Downing introduced the Item and provided information regarding the current Lopez Litigation. Administrative Services Director Valentine presented the Item. Director Valentine, City Manager Downing, and City Clerk Matson responded to questions from Council.
8 Item 9.a.
Mayor Ray Russom invited public comment. Speaking from the public were Judy Ceccetti, and Donna. No further public comments were received. City Manager Downing responded to questions from the public.
Council discussion ensued regarding concerns with using LAIF market rate and requested staff look at a different rate for the payback to the General Fund.
Moved by Council Member Loe
Seconded by Council Member Guthrie
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A LOAN IN AN AMOUNT NOT TO EXCEED $1,430,000 FROM THE GENERAL FUND TO THE WATER FUND";
2) Appropriate $1,430,000 from Water Enterprise Fund to pay the County of San Luis Obispo Flood Control Zone 3 Contract Water Billing for Fiscal Year (FY) 2024-25 Costs; and 3) Find that adoption of the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).
AYES (5): Council Member Loe, Council Member Guthrie, Council Member Maraviglia, Mayor Pro Tem Secrest, and Mayor Ray Russom
Passed (5 to 0)
12. COUNCIL COMMUNICATIONS
Council Member Loe highlighted the General Plan Update workshop in December and expressed gratitude for all City staff and to community members who get involved.
Mayor Pro Tem Secrest congratulated staff for the Budget Award and the launch of the refreshed City website.
Mayor Ray Russom declared a conflict of interest on Item 10.a. due to a historic resource designation on her residence; and declared a conflict of interest on Item 10.b. due to owning an ADU.
Mayor Ray Russom called for a brief break at 7:51 p.m. and left the meeting. The Council reconvened at 7:58 p.m.
13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Pro Tem Secrest adjourned the meeting at 8:30 pm.
9 Item 9.a.
_________________________
Caren Ray Russom, Mayor
ATTEST:
_________________________
Jessica Matson, City Clerk
Item 9.b.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Cash Disbursement Ratification
DATE: December 9, 2025
RECOMMENDATION:
Review and ratify the attached listing of cash disbursements for the period of November 1 through November 15, 2025.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is a $3,071,836.05 fiscal impact for the period of November 1 through November 15, 2025, that includes the following items:
Accounts Payable Checks $2,537,909.01
Payroll & Benefit Checks $533,927.04
BACKGROUND:
Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff review all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual.
ANALYSIS OF ISSUES:
The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2025-26 budget.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation;
2. Do not approve staff’s recommendation; or
3. Provide other direction to staff.
Item 9.b.
City Council
Cash Disbursement Ratification
December 9, 2025
ADVANTAGES:
The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.
Invoices are paid in a timely manner to establish goodwill with merchants. Discounts are taken where applicable.
DISADVANTAGES:
There are no disadvantages identified in this recommendation.
ENVIRONMENTAL REVIEW:
Ratifying the cash disbursements is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. November 1 through November 15, 2025 – Accounts Payable Check Register
2. November 14, 2025 – Payroll & Benefit Check Registers
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:110425UB TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 999997 ONE TIME PAY REFUND
10/30/25 306540 P 11/04/25 640 2301 DEPOSIT RENTERS 165.30 INVOICE: 00005848
10/30/25 306542 P 11/04/25 640 2301 DEPOSIT RENTERS 299.24 INVOICE: 00004102
10/30/25 306541 P 11/04/25 640 2301 DEPOSIT RENTERS 299.24 INVOICE: 00026727
10/30/25 306534 P 11/04/25 640 2301 DEPOSIT RENTERS 160.93 INVOICE: 00029841
10/30/25 306543 P 11/04/25 640 2301 DEPOSIT RENTERS 160.93 INVOICE: 00029114
10/30/25 306535 P 11/04/25 640 2301 DEPOSIT RENTERS 172.53 INVOICE: 00029294
10/30/25 306536 P 11/04/25 640 2301 DEPOSIT RENTERS 172.53 INVOICE: 00029883
10/30/25 306537 P 11/04/25 640 2301 DEPOSIT RENTERS 306.11 INVOICE: 00017929
10/30/25 306538 P 11/04/25 640 2301 DEPOSIT RENTERS 285.50 INVOICE: 00025680
10/30/25 306533 P 11/04/25 640 2301 DEPOSIT RENTERS 9.46 INVOICE: 00027770
10/30/25 306539 P 11/04/25 640 2301 DEPOSIT RENTERS 37.86 INVOICE: 00029530
REPORT TOTALS 2,069.63
COUNT AMOUNT
TOTAL PRINTED CHECKS 11 2,069.63
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 111452 A-TOWN AUDIO VIDEO
11/07/25 306545 P 11/12/25 10014140 5303 CONTRACTUAL SERVICES 647.06 INVOICE: 25726
108367 ABALONE COAST ANALYTICAL INC
10/29/25 306546 P 11/12/25 64054710 5310 WATER TREATMENT SERVICES 140.00 INVOICE: 25-4171
114672 AMAZON CAPITAL SERVICES
11/01/25 306547 P 11/12/25 10044421 5201 SUPPLIES-OFFICE 21.41 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044421 5201 SUPPLIES-OFFICE 5.70 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044421 5201 SUPPLIES-OFFICE 80.34 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044421 5701 OFFICE EQUIPMENT & FURN 23.48 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044421 5255 SPECIAL DEPARTMENT SUPPLI 36.87 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044421 5201 SUPPLIES-OFFICE 17.03 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 9.78 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 108.72 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 78.50 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 39.14 INVOICE: 1N3D-TMRJ-XRL3
11/01/25 306547 P 11/12/25 10014102 5201 SUPPLIES-OFFICE 187.45 INVOICE: 164V-QQ47-TNMX
11/01/25 306547 P 11/12/25 10014001 5201 SUPPLIES-OFFICE 84.37 INVOICE: 164V-QQ47-TNMX
11/01/25 306547 P 11/12/25 10014101 5201 SUPPLIES-OFFICE 32.20 INVOICE: 164V-QQ47-TNMX
11/01/25 306547 P 11/12/25 10034201 5201 SUPPLIES-OFFICE 88.08 INVOICE: 1FXQ-3NVP-XKR4
11/01/25 306547 P 11/12/25 10034201 5201 SUPPLIES-OFFICE -205.54 INVOICE: 1FXQ-3NVP-XKR4
11/01/25 306547 P 11/12/25 10034201 5255 SPECIAL DEPARTMENT SUPPLI 261.38 INVOICE: 1FXQ-3NVP-XKR4
11/01/25 306547 P 11/12/25 10034201 5604 MAINTENANCE-BUILDINGS 151.14 INVOICE: 1FXQ-3NVP-XKR4
107241 ANIMAL SERVICES
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 09/18/25 306548 P 11/12/25 12014118 5321 ANIMAL CONTROL SERVICES 31,944.16 INVOICE: 111525
106226 APPLIED TECHNOLOGY GROUP INC
11/01/25 306549 P 11/12/25 10034204 5606 MAINTENANCE-RADIO COMM. 168.55 INVOICE: REC0111950
103175 AQUA-METRIC SALES CO
10/21/25 2026012 306550 P 11/12/25 64054712 5207 SUPPLIES-WATER METERS 1,783.57 INVOICE: INV0110819
106607 AT&T
09/25/25 306551 P 11/12/25 10014145 5403 TELECOMMUNICATIONS 29.85 INVOICE: 000024116231
10/25/25 306551 P 11/12/25 10014145 5403 TELECOMMUNICATIONS 29.85 INVOICE: 000024264090
10/25/25 306551 P 11/12/25 10034201 5403 TELECOMMUNICATIONS 36.03 INVOICE: 000024264087
10/25/25 306551 P 11/12/25 10034201 5403 TELECOMMUNICATIONS 182.66 INVOICE: 000024264088
10/25/25 306551 P 11/12/25 10034201 5403 TELECOMMUNICATIONS 89.56 INVOICE: 000024264091
111190 ATC SEQUOIA LLC
11/01/25 306552 P 11/12/25 10034201 5303 CONTRACTUAL SERVICES 138.42 INVOICE: LEASE#VZ118829 11/25
114310 BACK ON THE ROAD AUTOMOBILE
10/27/25 306553 P 11/12/25 10044420 5601 MAINTENANCE-VEHICLES 145.26 INVOICE: 003630
113248 BEATTY, IRINA
11/04/25 306554 P 11/12/25 10044424 5351 SERVICES-CLASSES 960.00 INVOICE: 110425
104285 BILL GAINES AUDIO INC
11/03/25 306555 P 11/12/25 10044424 5353 SERVICES-EVENTS 1,248.70 Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: INV-05448
115811 BOOT BARN INC
10/27/25 306556 P 11/12/25 22064303 5148 BOOT ALLOWANCE 181.06 INVOICE: INV00535393
115888 BOWLING, KENDRA
11/03/25 306557 P 11/12/25 10044424 5351 SERVICES-CLASSES 994.00 INVOICE: 110325
112709 BRAND CREATIVE
10/29/25 306558 P 11/12/25 10034204 5272 PROTECTIVE/SAFETY CLOTHIN 161.65 INVOICE: 9739
111497 BRENDLER JANITORIAL SERVICE
11/03/25 306559 P 11/12/25 10054308 5615 JANITORIAL SERVICES 1,285.00 INVOICE: 5222
11/03/25 306559 P 11/12/25 10034201 5615 JANITORIAL SERVICES 500.00 INVOICE: 5222
105726 BRENNTAG PACIFIC INC
10/28/25 306560 P 11/12/25 64054712 5274 CHEMICAL SUPPLIES 1,558.63 INVOICE: BPI558869
100087 BREZDEN PEST CONTROL, INC
11/05/25 306561 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 142.00 INVOICE: 580373
11/05/25 306561 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 151.00 INVOICE: 580757
100090 BRISCO MILL & LUMBER YARD
10/07/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 38.36 INVOICE: 191737
10/07/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 44.01 INVOICE: 191749
10/08/25 306562 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 74.33 INVOICE: 191754
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 10/10/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 17.38 INVOICE: 191770
10/13/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 2.39 INVOICE: 191782
10/21/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 82.60 INVOICE: 191839
10/22/25 306562 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 28.26 INVOICE: 191852
10/23/25 306562 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 19.55 INVOICE: 191862
10/23/25 306562 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 82.63 INVOICE: 191863
109909 BSN SPORTS, LLC
10/21/25 306563 P 11/12/25 10054330 5605 MAINTENANCE-GROUNDS 535.02 INVOICE: 931726453
104149 BUNYON BROS TREE SERVICE
11/04/25 306564 P 11/12/25 10044420 5303 CONTRACTUAL SERVICES 1,475.00 INVOICE: 33223
112669 BURT INDUSTRIAL SUPPLY INC
10/29/25 306565 P 11/12/25 61254610 5255 SPECIAL DEPARTMENT SUPPLI 156.70 INVOICE: 171328
114914 CENTRAL COAST PARTY FACTORY
10/31/25 306566 P 11/12/25 10044424 5252 SUPPLIES-RECREATION EVENT 7,770.04 INVOICE: 103125
112059 CINOWALT, KATHLEEN J
11/03/25 306567 P 11/12/25 10044424 5351 SERVICES-CLASSES 144.00 INVOICE: 110325
116352 CITYDATA INC
10/30/25 306568 P 11/12/25 10044424 5353 SERVICES-EVENTS 265.00 INVOICE: CD-1203086
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 100174 COASTLINE EQUIPMENT
08/29/25 306569 P 11/12/25 64054712 5603 MAINTENANCE-MACH & EQUIP 808.96 INVOICE: 1274663
10/30/25 306569 P 11/12/25 61254610 5603 MAINTENANCE-MACH & EQUIP 557.47 INVOICE: 1293541
100178 COLD CANYON LANDFILL, INC
10/31/25 306570 P 11/12/25 22064303 5307 DISPOSAL FEES 342.00 INVOICE: 45564D100
116336 COMMUNE COMMUNICATIONS CORP
11/05/25 306571 P 11/12/25 24014150 5301 ADVERTISING 21,400.00 INVOICE: 2025135
11/05/25 306571 P 11/12/25 24014150 5301 ADVERTISING 10,600.00 INVOICE: 2025136
114515 CRISP IMAGING
11/10/25 306572 P 11/12/25 10014102 5306 PRINTING SERVICES 131.27 INVOICE: 661566
115324 CROSS, SHIRLEY J
11/03/25 306573 P 11/12/25 10044424 5351 SERVICES-CLASSES 1,176.00 INVOICE: 110325
112568 CSG CONSULTANTS INC
08/07/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 11,073.50 INVOICE: 62331
08/08/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 4,833.00 INVOICE: 62384
08/01/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 16,919.66 INVOICE: B250961
09/12/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 537.00 INVOICE: 62657
09/02/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 715.00 INVOICE: B251122
08/01/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 690.00 INVOICE: F250612
09/02/25 2026027 306574 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 276.00 INVOICE: F250760
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
109431 CUDDY, GAYLE
11/03/25 306575 P 11/12/25 10044424 5351 SERVICES-CLASSES 539.00 INVOICE: 110325 WFL
11/03/25 306575 P 11/12/25 10044424 5351 SERVICES-CLASSES 470.40 INVOICE: 110325 SF
102102 DE LAGE LANDEN FINANCIAL SVCS
10/07/25 306576 P 11/12/25 10044421 5602 MAINTENANCE-OFFICE EQUIPM 481.04 INVOICE: 592554015
100722 DELTA DENTAL
11/01/25 306648 T 11/12/25 110 2110 DENTAL INSURANCE 8,107.13 INVOICE: BE006795680
11/01/25 306648 T 11/12/25 10014099 5132 DENTAL INSURANCE 2,518.72 INVOICE: BE006795680
107703 DUKE'S ROOT CONTROL INC
10/31/25 306577 P 11/12/25 61254610 5610 MAINTENANCE-LINES & PUMPS 9,622.68 INVOICE: 37853
113833 FAIRWEATHER, JOHN
01/03/25 306578 P 11/12/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-46845
100240 FARM SUPPLY CO
10/23/25 306579 P 11/12/25 10054330 5605 MAINTENANCE-GROUNDS 93.83 INVOICE: 117422
10/23/25 306579 P 11/12/25 10054330 5605 MAINTENANCE-GROUNDS 97.77 INVOICE: 117423
10/29/25 306579 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 4.30 INVOICE: 117497
10/29/25 306579 P 11/12/25 21454550 5606 MAINTENANCE-RADIO COMM. 1,095.59 INVOICE: 117509
109950 FENCE FACTORY ATASCADERO
07/21/25 306580 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 170.10 Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 894301
113533 FIVE CITIES DUPLICATE BRIDGE
11/03/25 306581 P 11/12/25 10044424 5351 SERVICES-CLASSES 1,456.00 INVOICE: 110325
102270 FOREMOST PROMOTIONS
11/03/25 2026036 306582 P 11/12/25 10034201 5504 PUBLIC RELATIONS 519.25 INVOICE: 743293
109851 FRYER, ELIZABETH
11/03/25 306583 P 11/12/25 10044424 5351 SERVICES-CLASSES 704.66 INVOICE: 110325
109852 GABEL, MARY JO
11/03/25 306584 P 11/12/25 10044424 5351 SERVICES-CLASSES 1,274.00 INVOICE: 110325
105998 GRANITE CONSTRUCTION CO
09/30/25 2026016 306585 P 11/12/25 35055679 7001 CONSTRUCTION 1,962,225.60 INVOICE: 3071130
112515 HARRIS, ANNCHEN
09/02/25 306586 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 87.50 INVOICE: 01-52191
114171 HEALTH AND HUMAN RESOURCE CTR
10/03/25 306587 P 11/12/25 10014145 5147 EMPLOYEE ASSISTANCE PROGR 197.64 INVOICE: E0355640
10/03/25 306587 P 11/12/25 100 1111 ACCOUNTS RECEIVABLE - FCF 49.41 INVOICE: E0355640
116457 HONEYCUTT, MADISON
11/03/25 306588 P 11/12/25 10044424 5351 SERVICES-CLASSES 41.60 INVOICE: 110325
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
108947 ICONIX WATERWORKS (US) INC
10/21/25 306589 P 11/12/25 64054712 5273 SMALL TOOLS 429.56 INVOICE: U2516043892
10/21/25 306589 P 11/12/25 64054712 5610 MAINTENANCE-LINES & PUMPS 60.91 INVOICE: U2516043892
100340 INTOXIMETERS, INC
10/27/25 2026039 306590 P 11/12/25 10034209 5255 SPECIAL DEPARTMENT SUPPLI 1,587.49 INVOICE: 800091
105201 JAS PACIFIC
10/06/25 2026029 306591 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 10,675.22 INVOICE: PC7707
10/06/25 2026029 306591 P 11/12/25 10024160 5303 CONTRACTUAL SERVICES 11,021.25 INVOICE: BI15148
100208 JB DEWAR, INC
10/31/25 306592 P 11/12/25 10034201 5608 GAS & OIL 257.31 INVOICE: 432311
10/31/25 306592 P 11/12/25 10034203 5608 GAS & OIL 1,301.27 INVOICE: 432311
10/31/25 306592 P 11/12/25 10034204 5608 GAS & OIL 226.26 INVOICE: 432311
10/31/25 306592 P 11/12/25 22064303 5608 GAS & OIL 447.21 INVOICE: 432311
10/31/25 306592 P 11/12/25 64054712 5608 GAS & OIL 576.93 INVOICE: 432311
10/31/25 306592 P 11/12/25 61254610 5608 GAS & OIL 176.21 INVOICE: 432311
10/31/25 306592 P 11/12/25 10054330 5608 GAS & OIL 168.69 INVOICE: 432311
10/31/25 306592 P 11/12/25 10044420 5608 GAS & OIL 586.08 INVOICE: 432311
10/31/25 306592 P 11/12/25 10054308 5608 GAS & OIL 193.35 INVOICE: 432311
115070 JD ELECTRIC
11/04/25 306593 P 11/12/25 10044420 5303 CONTRACTUAL SERVICES 560.00 INVOICE: 110425
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
108599 L. DIESEL MOBILE SERVICE
10/26/25 306594 P 11/12/25 10044420 5601 MAINTENANCE-VEHICLES 280.00 INVOICE: 9054
10/26/25 306594 P 11/12/25 22064303 5601 MAINTENANCE-VEHICLES 440.00 INVOICE: 9054
10/26/25 306594 P 11/12/25 64054712 5601 MAINTENANCE-VEHICLES 150.00 INVOICE: 9054
10/26/25 306594 P 11/12/25 61254610 5601 MAINTENANCE-VEHICLES 150.00 INVOICE: 9054
116452 LANDSCAPE STRUCTURES INC
09/12/25 2026024 306595 P 11/12/25 35505150 7001 CONSTRUCTION 223,980.25 INVOICE: INV-169298
114764 LEONG, PRINCESS
11/03/25 306596 P 11/12/25 10044424 5351 SERVICES-CLASSES 416.00 INVOICE: 110325
115255 LOLA'S LETTERS CENTRAL COAST
11/03/25 306597 P 11/12/25 10044424 5252 SUPPLIES-RECREATION EVENT 290.00 INVOICE: 0357
100393 LUCIA MAR UNIFIED SCHOOL DIST
10/27/25 306598 P 11/12/25 10044424 5257 SUPPLIES-SPORTS LEAGUES 1,198.12 INVOICE: 260195
10/27/25 306598 P 11/12/25 10044424 5257 SUPPLIES-SPORTS LEAGUES 711.00 INVOICE: 260196
09/17/25 306598 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 37.50 INVOICE: 260096
102635 MANGIARDI, HEIDY
11/04/25 306599 P 11/12/25 10044424 5351 SERVICES-CLASSES 1,778.98 INVOICE: 110425
116323 MAULE, TAMMY L CROSS
11/03/25 306600 P 11/12/25 10044424 5351 SERVICES-CLASSES 142.80 Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 110325
116455 MENDOZA, JESSE DAVID
11/03/25 306601 P 11/12/25 10044424 5352 SERVICES-LEAGUES 99.00 INVOICE: 110325
116475 MERINO, JOCELYN DIAZ
10/29/25 306602 P 11/12/25 10044424 5352 SERVICES-LEAGUES 82.50 INVOICE: 102925
100426 MIER BROS LANDSCAPE PRODUCTS
10/09/25 306603 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 250.13 INVOICE: 394947
10/24/25 306603 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 250.13 INVOICE: 395404
116404 MILLER MENDEL INC
09/02/25 306604 P 11/12/25 10034201 5316 JOB RECRUITMENT EXPENSE 325.05 INVOICE: 10802
100429 MINER'S ACE HARDWARE, INC
11/03/25 306605 P 11/12/25 64054712 5610 MAINTENANCE-LINES & PUMPS 31.23 INVOICE: 637275
10/28/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 32.68 INVOICE: 636935
10/29/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 17.36 INVOICE: 637027
10/29/25 306605 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 6.51 INVOICE: 637029
10/30/25 306605 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 119.01 INVOICE: 637067
10/31/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 48.89 INVOICE: 637125
11/03/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 44.74 INVOICE: 637250
11/05/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 126.08 INVOICE: 637387
11/06/25 306605 P 11/12/25 22064303 5613 MAINTENANCE-STREETS & BRI 29.33 INVOICE: 637407
11/06/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 10.85 INVOICE: 637417
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 11/06/25 306605 P 11/12/25 10054308 5604 MAINTENANCE-BUILDINGS 8.69 INVOICE: 637418
100441 MULLAHEY FORD
09/12/25 306606 P 11/12/25 10034203 5601 MAINTENANCE-VEHICLES 161.80 INVOICE: 27079
114042 NELSON, NICCOLA
11/03/25 306607 P 11/12/25 10044424 5351 SERVICES-CLASSES 403.20 INVOICE: 110325
101265 NEW TIMES
09/25/25 306608 P 11/12/25 10014002 5301 ADVERTISING 177.00 INVOICE: 384916
100466 NOBLE SAW, INC
10/10/25 306609 P 11/12/25 10044420 5603 MAINTENANCE-MACH & EQUIP 96.92 INVOICE: 665267
10/21/25 306609 P 11/12/25 10044420 5603 MAINTENANCE-MACH & EQUIP 89.02 INVOICE: 666264
10/29/25 306609 P 11/12/25 10054330 5605 MAINTENANCE-GROUNDS 54.31 INVOICE: 666931
999999 ONE TIME PAY
09/24/25 306615 P 11/12/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 1,033.00 INVOICE: 03-03411
09/24/25 306615 P 11/12/25 10004000 4655 BUILDING SUPERVISION -105.00 INVOICE: 03-03411
11/03/25 306614 P 11/12/25 10004000 4607 SPECIAL EVENTS 25.00 INVOICE: 110325
08/29/25 306618 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 87.50 INVOICE: 01-52180
08/19/25 306610 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 40.00 INVOICE: 01-51961
09/08/25 306611 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 87.50 INVOICE: 01-52349(1)
07/07/25 306620 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 75.00 INVOICE: 01-50994
10/07/25 306613 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 75.00 INVOICE: 03-03468
10/08/25 306612 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 105.00 Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 03-03470
10/28/25 306616 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 125.00 INVOICE: 03-03549
11/05/25 306619 P 11/12/25 10044424 5251 SUPPLIES-RECREATION CLASS 27.25 INVOICE: 102725
04/14/25 306617 P 11/12/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 INVOICE: 01-49327(1)
04/14/25 306617 P 11/12/25 10004000 4125 POLICE PERMITS 143.00 INVOICE: 01-49327(1)
100481 PACIFIC GAS & ELECTRIC CO
10/21/25 306621 P 11/12/25 10054307 5402 POWER 1,775.27 INVOICE: 8532998718-5 102125
10/21/25 306621 P 11/12/25 64054712 5402 POWER 10,600.00 INVOICE: 8532998718-5 102125
10/21/25 306621 P 11/12/25 64054711 5402 POWER 3,514.48 INVOICE: 8532998718-5 102125
10/21/25 306621 P 11/12/25 61254610 5402 POWER 3,068.53 INVOICE: 8532998718-5 102125
10/21/25 306621 P 11/12/25 10014145 5401 UTILITIES 14,650.92 INVOICE: 8532998718-5 102125
10/21/25 306621 P 11/12/25 21754560 5355 PARKWAY MAINTENANCE-TR 17 -44.17 INVOICE: 8532998718-5 102125
116109 PARADISE TREE SERVICE
11/04/25 306622 P 11/12/25 21454550 5606 MAINTENANCE-RADIO COMM. 4,000.00 INVOICE: 2376
107108 PARAMOUNT CLEANERS
10/31/25 306623 P 11/12/25 10034201 5303 CONTRACTUAL SERVICES 97.50 INVOICE: 76928
10/31/25 306623 P 11/12/25 10034203 5303 CONTRACTUAL SERVICES 181.00 INVOICE: 76928
10/31/25 306623 P 11/12/25 10034204 5303 CONTRACTUAL SERVICES 120.00 INVOICE: 76928
100492 PETTY CASH
10/15/25 306624 P 11/12/25 100 1033 CHANGE CASH-SPECIAL RECRE 400.00 INVOICE: 111625 TURKEY TROT
115459 PRUDENTIAL OVERALL SUPPLY
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 10/30/25 306625 P 11/12/25 64054712 5143 UNIFORM ALLOWANCE 48.84 INVOICE: 82034042
10/30/25 306625 P 11/12/25 10054330 5143 UNIFORM ALLOWANCE 24.02 INVOICE: 82034045
10/30/25 306625 P 11/12/25 61254610 5143 UNIFORM ALLOWANCE 24.77 INVOICE: 82034049
10/30/25 306625 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 25.98 INVOICE: 82034039
10/30/25 306625 P 11/12/25 10054308 5143 UNIFORM ALLOWANCE 25.53 INVOICE: 82034048
10/30/25 306625 P 11/12/25 22064303 5143 UNIFORM ALLOWANCE 40.03 INVOICE: 82034047
10/30/25 306625 P 11/12/25 10044420 5143 UNIFORM ALLOWANCE 64.06 INVOICE: 82034046
10/30/25 306625 P 11/12/25 10054305 5143 UNIFORM ALLOWANCE 38.95 INVOICE: 82034044
10/30/25 306625 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 32.56 INVOICE: 82034043
10/30/25 306625 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 50.56 INVOICE: 82034040
10/30/25 306625 P 11/12/25 10054308 5303 CONTRACTUAL SERVICES 34.03 INVOICE: 82034041
10/09/25 306625 P 11/12/25 10054305 5143 UNIFORM ALLOWANCE 154.43 INVOICE: 11012045
11/06/25 306625 P 11/12/25 10044420 5143 UNIFORM ALLOWANCE 38.35 INVOICE: 82035228
11/06/25 306625 P 11/12/25 61254610 5143 UNIFORM ALLOWANCE 24.77 INVOICE: 82035231
11/06/25 306625 P 11/12/25 22064303 5143 UNIFORM ALLOWANCE 40.03 INVOICE: 82035229
11/06/25 306625 P 11/12/25 10054330 5143 UNIFORM ALLOWANCE 24.02 INVOICE: 82035227
11/06/25 306625 P 11/12/25 10054308 5143 UNIFORM ALLOWANCE 25.53 INVOICE: 82035230
11/06/25 306625 P 11/12/25 10054305 5143 UNIFORM ALLOWANCE 17.31 INVOICE: 82035226
11/06/25 306625 P 11/12/25 64054712 5143 UNIFORM ALLOWANCE 49.14 INVOICE: 82035225
113093 RAINSCAPE
11/01/25 306626 P 11/12/25 21654560 5304 PROFESSIONAL SERVICES 484.37 INVOICE: 077354
11/01/25 306626 P 11/12/25 21954560 5304 PROFESSIONAL SERVICES 1,201.41 INVOICE: 077355
10/29/25 306626 P 11/12/25 21954560 5304 PROFESSIONAL SERVICES 824.53 INVOICE: 124357
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 106930 REYNOLDS, KELLY
11/03/25 306627 P 11/12/25 10044424 5250 SUPPLIES-VOLUNTEER PROGRA 61.94 INVOICE: 110325
110392 SANCON TECHNOLOGIES INC
10/13/25 2026020 306628 P 11/12/25 35055794 7001 CONSTRUCTION 80,075.00 INVOICE: 28906
116003 SCHEIDT, TYLER JAMES
04/15/25 306629 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 600.00 INVOICE: 0000078
111308 SITEONE LANDSCAPE SUPPLY LLC
10/24/25 306630 P 11/12/25 10054330 5605 MAINTENANCE-GROUNDS 347.09 INVOICE: 159961541-001
10/29/25 306630 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 103.08 INVOICE: 160096190-001
10/29/25 306630 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 1.81 INVOICE: 160102890-001
10/30/25 306630 P 11/12/25 10044420 5605 MAINTENANCE-GROUNDS 23.32 INVOICE: 160140008-001
100605 SOCALGAS
10/23/25 306631 P 11/12/25 10014145 5401 UTILITIES 17.94 INVOICE: 07611524005 10/23/25
10/27/25 306631 P 11/12/25 10014145 5401 UTILITIES 19.48 INVOICE: 19351491006 102725
10/27/25 306631 P 11/12/25 10014145 5401 UTILITIES 23.44 INVOICE: 14501439005 102725
10/28/25 306631 P 11/12/25 10014145 5401 UTILITIES 14.79 INVOICE: 05281491315 102825
116479 SOUTHWEST LIFT & EQUIPMENT INC
09/10/25 306632 P 11/12/25 10054305 5303 CONTRACTUAL SERVICES 448.00 INVOICE: 15388
104393 SP MAINTENANCE SERVICES, INC
10/31/25 306633 P 11/12/25 22064303 5303 CONTRACTUAL SERVICES 7,342.50 INVOICE: 99487
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 10/31/25 306633 P 11/12/25 10054307 5303 CONTRACTUAL SERVICES 7,342.50 INVOICE: 99487
100733 STANDARD INSURANCE CO
11/01/25 306634 P 11/12/25 110 2113 LIFE INSURANCE 2,924.66 INVOICE: 643870-NOV 2025
115496 STEPHENS, KATHRYN
08/19/25 306635 P 11/12/25 10004000 4605 SPEC.INT.CLASSES 87.50 INVOICE: 01-51961
100620 STREATOR PIPE & SUPPLY
10/23/25 306636 P 11/12/25 64054712 5610 MAINTENANCE-LINES & PUMPS 50.28 INVOICE: S1839788.001
116183 THE SHERWIN-WILLIAMS CO INC
10/27/25 306637 P 11/12/25 10054330 5255 SPECIAL DEPARTMENT SUPPLI 523.63 INVOICE: 3043-1
114090 THE UPS STORE
09/30/25 306638 P 11/12/25 64054711 5603 MAINTENANCE-MACH & EQUIP 18.94 INVOICE: 109894
101030 TUCKFIELD & ASSOCIATES
10/31/25 306639 P 11/12/25 64054710 5303 CONTRACTUAL SERVICES 4,368.00 INVOICE: 0784
10/31/25 306639 P 11/12/25 61254610 5303 CONTRACTUAL SERVICES 1,872.00 INVOICE: 0784
105252 ULTREX BUSINESS PRODUCTS
10/28/25 306640 P 11/12/25 10034204 5303 CONTRACTUAL SERVICES 157.68 INVOICE: 4498674-CAL
106551 UNITED STAFFING ASSOC.
10/29/25 306641 P 11/12/25 10044420 5303 CONTRACTUAL SERVICES 1,160.35 Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 259634
10/29/25 306641 P 11/12/25 10044424 5351 SERVICES-CLASSES 166.80 INVOICE: 259634
11/05/25 306641 P 11/12/25 10044420 5303 CONTRACTUAL SERVICES 1,160.35 INVOICE: 259881
100737 VISION SERVICE PLAN
11/01/25 306642 P 11/12/25 110 2119 VISION INSURANCE 2,139.24 INVOICE: 823887676
11/01/25 306642 P 11/12/25 10014099 5133 VISION INSURANCE 604.54 INVOICE: 823887676
100685 WALLACE GROUP A CALIF CORP
11/03/25 306643 P 11/12/25 61254610 5303 CONTRACTUAL SERVICES 138.75 INVOICE: 66169
102609 WATERBOYS PLUMBING
10/28/25 306644 P 11/12/25 10044420 5303 CONTRACTUAL SERVICES 750.00 INVOICE: 32925
100699 WILSON ELECTRIC COMPANY INC, LEE
10/03/25 306645 P 11/12/25 10054307 5303 CONTRACTUAL SERVICES 1,635.00 INVOICE: 2509
10/31/25 306645 P 11/12/25 10054307 5303 CONTRACTUAL SERVICES 700.02 INVOICE: 3882
110816 WINEMA INDUSTRIAL &
11/05/25 306646 P 11/12/25 22064303 5255 SPECIAL DEPARTMENT SUPPLI 442.76 INVOICE: 6710
11/05/25 306646 P 11/12/25 61254610 5255 SPECIAL DEPARTMENT SUPPLI 316.38 INVOICE: 6710
11/05/25 306646 P 11/12/25 64054712 5255 SPECIAL DEPARTMENT SUPPLI 126.38 INVOICE: 6710
113459 YOUTH EVOLUTION BASKETBALL
11/03/25 306647 P 11/12/25 10044424 5351 SERVICES-CLASSES 1,911.00 INVOICE: 110325 SOCCER
11/03/25 306647 P 11/12/25 10044424 5351 SERVICES-CLASSES 294.00 INVOICE: 110325 BSKTBALL
Attachment 1
City of Arroyo Grande
PAID INVOICES REPORT
Report generated: 11/24/2025 11:06
User: mschotborgh
Program ID: appdwarr
INV GROUP:111225 TO FISCAL 2025/05 07/01/2025 TO 06/30/2026
VENDOR NAME
INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION
REPORT TOTALS 2,535,839.38
COUNT AMOUNT
TOTAL PRINTED CHECKS 103 2,525,213.53
TOTAL EFT TRANSFERS 1 10,625.85
** EN OF REPORT - Generated by Megan Schotborgh **
Attachment 1
General Fund 470,512.38 5101 Salaries Full time 299,250.66 Streets Fund 20,407.60 5101 Volunteer Employee Retirement - Sewer Fund 16,797.25 5102 Salaries Part-Time - PPT 11,127.23 Water Fund 26,209.81 5103 Salaries Part-Time - TPT 3,414.65 533,927.04 5105 Salaries OverTime 19,014.04
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,070.35
5108 Holiday Pay 5,863.08
5109 Sick Pay 8,507.66
Administrative Services 477.23 5110 Annual Leave Buyback - Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 15,269.37 5113 Vacation Pay 7,403.27
Public Works - Maintenance 1,459.25 5114 Comp Pay 2,473.76 Public Works - Enterprise 474.94 5115 Annual Leave Pay 10,707.07 Recreation - Administration 1,333.25 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 41,865.73 19,014.04 5122 Social Security 27,658.89
- 5123 PARS Retirement 213.41
5126 State Disability Ins. 4,635.75
5127 Deferred Compensation 1,891.65
5131 Health Insurance 56,941.80
5132 Dental Insurance 2,952.00
5133 Vision Insurance 757.11
5134 Life Insurance 373.54
5135 Long Term Disability 484.59
5137 Leave Payouts 23,688.74
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 1,037.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay -
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,310.00
533,927.04
OVERTIME BY DEPARTMENT:
CITY OF ARROYO GRANDE
DEPARTMENTAL LABOR DISTRIBUTION
PAY PERIOD
10/24/2025-11/6/2025
11/14/2025
BY FUND BY ACCOUNT
Attachment 2
Item 9.c.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Statement of Investment Deposits for October 2025 DATE: December 9, 2025
RECOMMENDATION:
Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of October 31, 2025, as required by Government Code Section 53646(b).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact on the City related to these reports. However, the City does receive interest revenue based on the interest rate of the investments. Little to no future staff time is projected.
BACKGROUND:
The Administrative Services department has historically submitted to the City Council a monthly report providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc.).
3. Date of maturity.
4. Principal amount.
5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
ANALYSIS OF ISSUES:
This report represents the City’s investments as of October 31, 2025, and includes all investments managed by the City. As of October 31, 2025, the investment portfolio complied with all State laws and the City’s investment policy.
Item 9.c.
City Council
Statement of Investment Deposits for October 2025
December 9, 2025
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation to receive and file the attached report listing the investment deposits;
2. Do not approve staff’s recommendation; or
3. Provide other direction to staff.
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversification of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
The Statement of Investment Deposits is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. Portfolio Summary: October 31, 2025
CITY OF ARROYO GRANDE
Portfolio Summary
October 31, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Local Agency Investment Fund $ 9,593,903.63 $ 9,593,903.63 4.150% 39.277% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 3.680% February 21, 2025 12 mos February 21, 2026 1.015% Live Oak Banking Company Inc 249,000.00 249,000.00 3.150% May 26, 2022 48 mos May 26, 2026 1.015% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 1.015% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 1.011% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 1.011% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.990% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 1.011% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 1.011% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 1.015% Paragon Bank TN 245,000.00 245,000.00 4.050% March 19, 2025 24 mos March 19, 2027 0.998% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 1.002% United Teletech Financial Credit Union 248,000.00 248,000.00 5.100% November 8, 2023 48 mos November 8, 2027 1.011% Medallion Bank UT 249,000.00 249,000.00 4.000% March 14, 2025 36 mos March 14, 2028 1.015% Amerant Bank NA 245,000.00 245,000.00 4.050% March 28, 2025 36 mos March 28, 2028 0.998% Freedom Northwest Credit Union 249,000.00 249,000.00 4.000% March 28, 2025 36 mos March 28, 2028 1.015% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.994% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 1.015% SkyOneFederal Credit Union 249,000.00 249,000.00 3.900% October 25, 2024 48 mos October 25, 2028 1.015% Merrick Bank UT 249,000.00 249,000.00 4.000% March 19, 2025 48 mos March 19, 2029 1.015% Bank Hapoalim BM New York 244,000.00 244,000.00 4.500% May 21, 2024 60 mos May 21, 2029 0.994% Morgan Stanley Private Bank 244,000.00 244,000.00 4.650% May 22, 2024 60 mos May 22, 2029 0.901% Goldman Sachs Bank USA 245,000.00 245,000.00 4.000% March 18, 2025 60 mos March 18, 2030 0.905% BMW Bank NA Salt Lake 245,000.00 245,000.00 4.000% May 16, 2025 48 mos May 16, 2029 0.998% Texas Exchange Bank Crowley 249,000.00 249,000.00 4.000% May 23, 2025 48 mos May 23, 2029 1.015% Security First Bk Lincoln Neb 245,000.00 245,000.00 3.950% July 3, 2025 48 mos July 3, 2030 0.998% Synchrony Bank 245,000.00 245,000.00 3.600% October 24, 2025 60 mos October 24, 2030 0.998% Institution for Svgs Newbury 249,000.00 249,000.00 3.650% October 28, 2025 60 mos October 28, 2030 1.015% Total Certificates of Deposit 6,670,000.00 6,670,000.00 26.996% ATTACHMENT 1
CITY OF ARROYO GRANDE
Portfolio Summary
October 31, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Agency Bonds
Federal Home Loan Bank 999,500.00 989,170.00 0.800% March 17, 2021 60 mos March 10, 2026 4.073% Federal Home Loan Bank 994,396.00 981,750.00 2.400% March 17, 2021 72 mos March 29, 2027 4.052% Federal Home Loan Bank 500,000.00 495,980.00 3.375% May 17, 2022 60 mos May 17, 2027 2.037% Federal Agriculture Mortgage Corp 495,174.00 499,145.00 3.580% October 28, 2024 36 mos October 7, 2027 2.018% Federal Agriculture Mortgage Corp 2,029,036.00 2,066,800.00 4.650% May 17, 2024 60 mos April 26, 2029 8.268% Total Agency Bonds 5,018,106.00 5,032,845.00 20.448%
Municipal Bonds
California State GO Various Purp Bond $ 491,810.00 $ 497,170.00 2.500% May 12, 2022 47 mos April 1, 2026 2.004% California State Taxable GO Unlimited 1,256,116.00 1,333,594.80 3.500% November 1, 2023 53 mos April 1, 2028 5.119% California State Taxable GO Unlimited 525,935.25 548,216.50 2.500% December 19, 2024 57 mos October 1, 2029 2.143% Total Municipal Bonds 2,273,861.25 2,378,981.30 9.266%
Treasury Obligations
U.S. Treasury Z-2026 Series 984,728.00 982,790.00 1.100% December 6, 2021 53 mos May 31, 2026 4.013% Total Treasury Obligations 984,728.00 982,790.00 4.013% TOTAL INVESTMENTS $ 24,540,598.88 $ 24,658,519.93 100.000% ATTACHMENT 1
Item 9.d.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: 2026 City Council Regular Meeting Schedule
DATE: December 9, 2025
RECOMMENDATION:
Adopt a Resolution establishing the 2026 City Council regular meeting schedule.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no financial impact projected. Staff time will be reduced since Cancellation Notices for regular meetings cancelled by the proposed resolution will not be needed.
BACKGROUND:
Arroyo Grande Municipal Code Section 2.04.010 provides that the City Council shall hold meetings as established by City Council resolution. City Council Resolution No. 4434 establishes that the Council shall hold its regular meetings on the second and fourth Tuesday of every month. The Council may enact further resolutions amending its meeting schedule. Typically the Council is dark the first regular meeting of July to allow for summer vacations and the second regular meeting in December due to the holiday.
ANALYSIS OF ISSUES:
For calendar year 2026, staff recommends adopting a regular meeting schedule, with the cancellation of the meetings of July 14, 2026, August 11, 2026, and December 22, 2026.
Staff recommends the cancellation of the July 14, 2026, meeting in keeping with the recent historical precedent of the first July meeting being cancelled to allow Council and staff to take vacation and to focus on other work. Additionally, staff recommends the cancellation of the August 11, 2026, meeting to further accommodate summer vacation schedules. Finally, staff recommends the cancellation of the December 22, 2026, meeting, due to its proximity to the Christmas and New Year holidays.
Item 9.d.
City Council
2026 City Council Regular Meeting Schedule
December 9, 2025
The Council may act now, or at a future meeting, to cancel additional meeting dates as it deems fit. Further, special meetings and closed sessions will continue to be scheduled as needed.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution setting the City Council’s 2026 regular meeting schedule, and cancelling the meeting dates of July 14, 2026, August 11, 2026, and December 22, 2026;
2. Modify and adopt a Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
Setting a schedule for regular City Council meetings in 2026 will allow Council and staff to plan around meetings and will reduce staff time in preparing Cancellation Notices.
DISADVANTAGES:
No disadvantages are identified.
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. Resolution
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE ESTABLISHING THE 2026 CITY COUNCIL REGULAR
MEETING SCHEDULE
WHEREAS, Arroyo Grande Municipal Code Section 2.04.010 provides that the City Council shall hold meetings as established by Resolution; and WHEREAS, City Council Resolution No. 4434 establishes that the City Council shall hold its regular meetings on the second and fourth Tuesday of every calendar month, and the Council may adopt further policy resolutions amending its regular meeting schedule; and
WHEREAS, staff recommends that certain regular meetings of the City Council be cancelled due to proximity to holidays and other factors; and WHEREAS, the Council may still act to cancel additional regular meetings, or schedule additional special meetings, at a future meeting if it deems it necessary or desirable.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby cancels its regular meetings of July 14, 2026, August 11, 2026, and December 22, 2026.
On a motion by Council Member _________, seconded by Council Member __________, and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 9
th day of December 2025.
RESOLUTION NO.
PAGE 2
_______________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
_______________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_______________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
_______________________________________
ISAAC ROSEN, CITY ATTORNEY
Item 9.e.
MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Selection of Council Member Maraviglia as Mayor Pro Tem DATE: December 9, 2025
RECOMMENDATION:
Appoint Council Member Maraviglia as the Mayor Pro Tem for the next one-year period, pursuant to City Council policy.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no financial and nominal staffing impact from this action.
BACKGROUND:
At its December 10, 2002, meeting, the City Council established a policy regarding the selection of the Mayor Pro Tem. At that time, the City Council agreed to appoint the Mayor Pro Tem on a one-year rotational basis by seniority of those members who have not yet served as Mayor Pro Tem. In 2005, the policy was modified to include additional language to address circumstances in which two members have the same tenure on the City Council. If this situation exists, the order of rotation is then based upon time served on a City Council-appointed Commission and/or Committee prior to being elected to the City Council. In January 2014, the policy was again modified so that newly elected and/or appointed Council Members become eligible to serve as Mayor Pro Tem after serving on the City Council for a period of one year (Section 2.3 of the City Council Handbook1).
ANALYSIS OF ISSUES:
Council Member Secrest has served as Mayor Pro Tem for the 2025 calendar year. Based on City Council policy regarding seniority of those members who have not yet served as Mayor Pro Tem, Council Member Maraviglia would be the next in line for the position of Mayor Pro Tem for the 2026 calendar year as a result of her previous service on the Planning Commission.
1 https://www.arroyogrande.org/DocumentCenter/View/4921/City-Council-Handbook
Item 9.e.
City Council
Selection of Council Member Maraviglia as Mayor Pro Tem December 9, 2025
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Appoint Council Member Maraviglia as the Mayor Pro Tem for the next one-year period;
2. Do not appoint Council Member Maraviglia and provide staff with direction on modifications to the policy; or
3. Provide staff direction.
ADVANTAGES:
Appointment of Council Member Maraviglia as Mayor Pro Tem is consistent with Council policy, which was developed to provide an orderly and fair procedure for alternating the position of Mayor Pro Tem. The proposed recommendation is consistent with the current policy.
DISADVANTAGES:
No disadvantages have been identified regarding this item.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
Item 9.f.
MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: City Council Appointments to Regional and Local Boards and Committees
DATE: December 9, 2025
RECOMMENDATION:
Review the list of Council appointments currently serving on the various regional and local boards and committees and approve appointments for calendar year 2026.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no fiscal impact associated with this action.
BACKGROUND:
Historically, after each election cycle, the Council makes appointments to the various regional and local boards and committees throughout the County that have Council representation. The Council also reviews the appointments annually. Options generally include filling vacancies, making reappointments, and/or selecting new assignments.
Once the appointments are approved by the Council, the names of the Council representatives are submitted to the respective agencies. The Council’s past practice has been to determine board and committee assignments (primary representatives and alternates) through a process of discussion, consensus, and approval. Council made appointments at their December 10, 20241, meeting following the November 5, 2024, general municipal election.
ANALYSIS OF ISSUES:
A current list of the regional and local boards and committees is provided for Council’s review, which sets forth the existing appointees (Attachment 1). Most of the regional agencies listed require the appointment of a primary representative and an alternate representative to their board or committee. There are a few exceptions in which the Mayor is required to serve as the primary representative on the board, and for which an alternate
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=d97188a8-cbd4-44a5-8b29- 561fdea7102b&lang=English&Agenda=Agenda&Item=47&Tab=attachments
Item 9.f.
City Council
City Council Appointments to Regional and Local Boards and Committees December 9, 2025
is not required. The appointments list identifies the specific board/committee, the frequency of meetings, the day, time, and location of the respective meetings, the staff representative (if applicable), and any requirements regarding the appointment. A description of each committee or board is included in Attachment 2.
Upcoming Change for Calendar Year 2026
Through a Memorandum of Understanding, service on the Central Coast Community Energy (CCCE) Policy Board rotates between the Cities of Arroyo Grande, Grover Beach, and Pismo Beach every two years, with one agency serving as primary representative and another agency serving as alternate. During the 2025 calendar year, the City served as primary and Council Member Guthrie was appointed to represent the City. The term is ends December 31st. The City of Grover Beach is next in line to serve as the primary representative, with the City of Pismo Beach as alternate. The list of appointments in Attachment 1 shows the removal of this Board for 2026.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Review current appointments and approve appointments to the regional and local boards and committees for the 2026 calendar year;
2. Make various reassignments to the regional and local boards and committees; or
3. Provide other direction to staff.
ADVANTAGES:
These appointments provide City representation on the various regional and local boards and committees that are currently on the appointments list.
DISADVANTAGES:
No disadvantages are identified.
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. Current Appointments List with Change for 2026
2. Council Committees and Boards Descriptions
CITY OF ARROYO GRANDE
CITY COUNCIL APPOINTMENTS
TO REGIONAL AND LOCAL BOARDS AND COMMITTEES
TO BE UPDATED DECEMBER 9, 2025
CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE
Air Pollution Control District (APCD)
Meetings held 4th Wednesday of every odd numbered month; 9:00 am; Board of Supervisors Chambers, County Government Center
Staff Representative: City Manager
Kate Secrest Jim Guthrie
Audit Committee
Meets twice a year before and after Audit; time varies; AG Council Chambers Conference Room;
Staff Representative: Administrative Services Director
Caren Ray Russom Aileen Loe
California Joint Powers Insurance Authority (CJPIA)
Meets in July for Annual Board Meeting in La Palma, CA
Staff Representatives: City Manager, Human Resources Officer Caren Ray Russom Jamie Maraviglia
Central Coast Community Energy (CCCE) Policy Board
1 st Wednesday of the month, 1:30 pm, February & June; Monterey Headquarters;
3 rd Wednesday & Thursday of the month, Time TBD, September; Location TBD;
2 nd Wednesday of the month, 9:00 am, December; SLO County teleconference option
The 2-year term runs odd years from January 1 – December 31 Staff Representative: N/A; City Manager sits on the Operations Board Jim Guthrie N/A (Grover Beach)
City Selection Committee (Mayors)
(Enabling legislation requires the Mayor to be the primary representative)
Meets as needed; time varies; Board of Supervisors Chambers, County Government Center
Staff Representative: Not applicable
Caren Ray Russom Kate Secrest
Council of Governments/Regional Transit Authority
(SLOCOG/SLORTA)
Meetings held 1st Wednesday of each month (SLOCOG and RTA meetings are scheduled in alternating months); 8:30 am; Board of Supervisors Chambers, County Government Center Staff Representative: Community Development Director
Aileen Loe Jim Guthrie
ATTACHMENT 1
CITY OF ARROYO GRANDE
CITY COUNCIL APPOINTMENTS
TO REGIONAL AND LOCAL BOARDS AND COMMITTEES
TO BE UPDATED DECEMBER 9, 2025
CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE
County Water Resources Advisory Committee (WRAC)
Meetings held 1st Wednesday of each month; 1:30 pm
City/County Library Community Room, San Luis Obispo
Staff Representative: Not applicable
Aileen Loe Jim Guthrie
Five Cities Fire Authority JPA Board
(Two members)
Meetings held 3rd Monday of each month; 5:00 pm
Grover Beach Council Chamber
154 S. 8th Street, Grover Beach
Staff Representative: City Manager
Caren Ray Russom
Jamie Maraviglia
Kate Secrest
Homeless Services Oversight Council (HSOC)
Meetings held 3rd Wednesday of odd-numbered months;
1:00 – 3:00 pm; SLO Veterans Hall, 801 Grand Avenue, SLO Staff Representative: City Manager
Kate Secrest Jamie Maraviglia
Integrated Waste Management Authority Board (IWMA)
Meetings held 2nd Wednesday of every month; 1:30 pm;
City of SLO Chamber
Staff Representative: Not applicable
Jim Guthrie Kate Secrest
REACH Economic Development Roundtable
1 meeting in Spring; 1 meeting in Fall; Time TBD; location varies Staff Representatives: City Manager, Community Development Director
Jim Guthrie Jamie Maraviglia
South County Chambers of Commerce
Governmental Affairs Committee
Meets as needed; time varies; location varies
Staff Representative: City Manager
Kate Secrest Jim Guthrie
South San Luis Obispo County Sanitation District Board
(Legislation requires the Mayor to be the primary representative) Meetings held the 1st (and 3rd Wednesday, if needed) of each month; 6:00 pm
Caren Ray Russom Jim Guthrie
CITY OF ARROYO GRANDE
CITY COUNCIL APPOINTMENTS
TO REGIONAL AND LOCAL BOARDS AND COMMITTEES
TO BE UPDATED DECEMBER 9, 2025
CITY COUNCIL REPRESENTATION TO: PRIMARY ALTERNATE
Visit SLO CAL Advisory Board
Meetings held semi-annually; time varies; location varies Staff Representative: Recreation Services Director
Jamie Maraviglia Caren Ray Russom
Zone 3 Water Advisory Board
Meetings held 3rd Thursday of odd-numbered months;
10:30 am; Rotates between South County agencies
Staff Representative: Public Works Director
Aileen Loe Kate Secrest
ATTACHMENT 2
CITY OF ARROYO GRANDE
COUNCIL COMMISSIONS & BOARDS
Air Pollution Control District Board (APCD)
The San Luis Obispo County Air Pollution Control District (APCD) is the local agency working to protect the health of county residents by preserving good air quality. By partnering with the local communities and businesses, the APCD Board implements regulations and programs to reduce air pollution and assist the county in reaching all outdoor air quality standards. The Board is comprised of all five County Supervisors and an elected official from each of the seven incorporated cities.
Audit Committee
In order to comply with the Statement of Auditing Standards (SAS) No. 114, the City of Arroyo Grande has established an Audit Committee.
California Joint Powers Insurance Authority (CJPIA)
The CJPIA is governed by a Board of Directors, consisting of one elected official appointed by each Member Agency. The Board elects a President, Vice President and seven Members of the Executive Committee, which meets monthly to supervise and conduct CJPIA affairs. The Executive Committee has an advisory City Managers Committee that meets monthly and a Finance Officers Committee, which meets quarterly.
The CJPIA Board of Directors meets annually at the CJPIA offices in La Palma or at the annual risk management seminar. The Board Director must be an elected official. The Alternate(s) may be either an elected official or staff and may serve as the Voting Delegate in the Director's absence. Staff recommends appointing the City Manage, and Human Resources Manager, along with one Council Member, as Alternates to ensure that a staff representative is available to attend the annual meeting if the Council representatives are unable to attend.
City Selection Committee (Mayors)
The City Selection Committee is comprised of the Mayor of each of the seven incorporated cities. The City Selection Committee makes appointments to the Airport Land Use Commission, California ID System Advisory Board, Local Agency Formation Commission (LAFCO), and Supplemental Law Enforcement Oversight Committee.
Council of Governments/Regional Transit Authority (SLOCOG/RTA) SLOCOG is a regional governing body organized through a joint powers agreement that has responsibility to regional transportation planning, preparing the Regional Housing Needs Allocation and the Sustainable Communities Strategy as part of the Regional Transportation Plan. The Board is comprised of all five County Supervisors and an elected official from each of the seven incorporated cities. RTA is operated through a joint powers agreement with SLOCOG responsible for regional rideshare programs and outreach activities offering alternative modes of transportation. SLOCOG and the RTA share the same board of directors and trade off meeting times every month. In South County, local fixed-route service levels (days, hours, routes, etc.), marketing efforts, and operating/capital budgets for local fixed-routes are controlled through the RTA South
ATTACHMENT 2
County Transit Committee (SCTC). The SCTC is comprised of the RTA Board members from the cities of Arroyo Grande, Grover Beach, and Pismo Beach, as well as one member from the Board of Supervisors. The SCTC meets at least annually to address public transit issues of interest to the SCTC members and to consider the following year's budget for local public transit services in the Five Cities Area.
County Water Resources Advisory Committee (WRAC)
This organization is involved with water supplies and availability of water on a Countywide basis. The purpose is to advise the County Board of Supervisors concerning all policy decisions relating to water resources of the SLO County Flood Control & Water Conservation District, to recommend specific water resource programs, and to recommend methods of financing water resource programs. (*Appointed representatives to the Committee need not be a Council Member, but do need to be individuals knowledgeable regarding water issues. According to WRAC staff, cities may appoint a Council Member as the lead representative who would be available when policy issues are discussed, with a staff member as the alternate for attending most of the meetings.) Note: Council appointed representatives require approval by the Board of Supervisors.
Five Cities Fire Authority JPA Board
Provision of fire protection services provided through a joint powers agreement with the Cities of Grover Beach and Arroyo Grande. The Authority JPA Board consists of two elected officials from member agencies, City of Arroyo Grande and City of Grover Beach.
The two City Managers serve as the Executive Officers of the JPA.
Homeless Services Oversight Council (HSOC)
The HSOC was created by the San Luis Obispo County Board of Supervisors and its purpose is to lead, facilitate, and provide oversight for implementation of the 10-Year Plan to End Homelessness. The HSOC is an advisory committee that discusses the Countywide approach to homelessness and services for the homeless, including both housing and supportive services. Membership is comprised of a broad spectrum of representatives from the County Board of Supervisors, each City, certain County government departments (health, planning, social services, veteran services, and probation), law enforcement, business organizations, academic institutions, faith community, as well as interested community members.
Integrated Waste Management Authority Board (IWMA)
The San Luis Obispo County Integrated Waste Management Authority (IWMA) combines the powers of the member agencies to achieve State-mandated waste diversion goals, satisfy the requirements of the Integrated Waste Management Act, and develop waste management facilities for the benefit of the County and all its cities and special districts.
The Board is comprised of an elected official from each of the seven incorporated cities, and one representative from all authorized Community Service Districts. (Note: Approval by the Board of Supervisors is not required Jot these assigned representatives.) REACH Economic Development Roundtable
ATTACHMENT 2
REACH is a nonprofit regional economic action coalition which strives to unite public private and civic leaders across the Central Coast. The Economic Development Roundtable is responsible for discussing regional issues and advising the Board. A representative of the Arroyo Grande area serves.
South County Chambers of Commerce
A Council Member is selected to attend the monthly South County Chambers of Commerce Governmental Affairs Committee Meeting to provide a brief update on upcoming business-related items or issues, as well as to provide general City updates and highlights of City programs, services, or special events. The Council Member is not a voting member.
South San Luis Obispo County Sanitation District (SSLOCSD) Board The City contracts with the Sanitation District for wastewater collection and treatment.
The District is governed by a Board of Directors composed of the presiding officer from the Cities of Grover Beach and Arroyo Grande and the Oceano Community Services District, or their respective alternates (per Memorandum of Understanding between the City and the Sanitation District, as well as Health and Safety Code sections 4730-4735).
Visit SLO CAl Advisory Committee
Visit SLO CAL promotes Countywide tourism opportunities and complements the efforts of local communities and organizations. It is a private, non-profit organization with membership comprised of local businesses, chambers of commerce, County government, and most incorporated cities in the County. The Visit SLO CAL Advisory Committee is comprised of elected officials and city managers, who participate in semiannual meetings and liaise back to the communities they represent with programming updates and overall metrics demonstrating the impacts of the Tourism Marketing District on the County and cities.
Zone 3 Water Advisory Board
This is a County organized committee to handle the operation of Lopez Lake for both recreation and water facilities. The Advisory Committee works closely with the Zone 3 Technical Advisory Committee. Note: Council appointed representatives require final approval by the Board of Supervisors.
Item 9.g.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works BY: Natalie Riddering, Planning/Engineering Permit Technician SUBJECT: Adoption of an Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
DATE: December 9, 2024
RECOMMENDATION:
1) Adopt an Ordinance Granting to Phillips 66, LLC a Pipeline Franchise Agreement to Construct, Operate, and Maintain Pipeline for the Transport of Oil, and Other Specified Material, in the City of Arroyo Grande; and
2) Find that adoption of the Ordinance granting Phillips 66, a pipeline franchise is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.); IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The annual franchise fee for the proposed franchise is set by state statute, pursuant to Public Utilities Code Section 6231.5, which establishes a rate per lineal foot based on the diameter of the pipeline, multiplied by the Consumer Price Index for the area. The most recent example of such payment received for the fiscal year 2024-2025 totaled $16,474.92. In addition, staff have negotiated a $15,000 granting fee to offset City costs related to administering, monitoring, and enforcing the franchise. A separate $5,000 transactional fee was also negotiated to reimburse the City for the costs of negotiating and drafting the proposed Pipeline Franchise Agreement (Exhibit A of Attachment 1, the Ordinance).
BACKGROUND:
California Public Utilities Code section 62011 et seq. authorizes the City Council to adopt an ordinance to grant a franchise to a utility company to transmit oil, gas, water, or electricity through the City by means of a pipeline, conduit, or other transmission method.
1https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=3.&title=&part= &chapter=2.&article=1
Item 9.g.
City Council
Adoption of an Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
December 9, 2025
Phillips 66 Pipeline, LLC (Phillips 66) currently possesses a franchise to transport oil and gas, and the history of this franchise is summarized in the staff report for Item 10.d of the November 25, 2025 meeting.2 The pipeline franchise involves the operation of a pipeline owned by Phillips 66 within City right of way as part of the larger Phillips 66 pipeline system depicted below in Figure 2 and Figure 3.
Figure 2 https://www.npms.phmsa.dot.gov/PIMMA/ Figure 3 City GIS ANALYSIS OF ISSUES:
Procedure of Adoption
The City has followed the process provided in Public Utilities Code Sections 6231 et. seq. for approval of a pipeline franchise agreement. On October 28, 2025, the City Council adopted Resolution 2025-0753 declaring the City Council’s intention to adopt an ordinance to grant Phillips 66 a pipeline franchise agreement. At a public hearing on November 25, 20254, the City Council introduced the Ordinance to grant to Phillips 66 Pipeline, LLC a pipeline franchise agreement. Should the City Council follow staff’s recommendation, adoption of the attached Ordinance is the final step in the process of granting the franchise.
2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=16443. 3 http://weblink.arroyogrande.org/WebLink/DocView.aspx?id=365712&dbid=0&repo=ArroyoGrande 4 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=16443
Item 9.g.
City Council
Adoption of an Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
December 9, 2025
Request Regarding Integrity and Materials of the Pipeline At the City Council meeting October 28, 2025, Council directed staff to provide recent pipeline inspection data to Council ahead of the November 25, 2025 public hearing including the integrity and materials of the pipeline, systems in place to detect leaks or rupture, coordination if there is a leak or rupture, occurrences or signs of leaks in the last 10 years, and if risk assessments have been conducted.
Staff conducted outreach with both the Office of the State Fire Marshall (OSFM) and Phillips 66 to collect information responsive to Council’s request, and this information was detailed in the November 25, 2025 staff report.
Protective Terms of the Franchise Agreement and Notice of Activation The Franchise Agreement contains various protective terms. These include the requirement to maintain a $2,000,000 bond to respond to leaks or ruptures, commercial general liability insurance up to $5,000,000 per incident, and other provisions to require Phillips 66 to provide certain information upon request, among others. At the City Council meeting on November 25, 2025, Council introduced the ordinance with an additional protective term.
Phillips 66 had told City staff that the pipeline has been inactive since at least 2023. City Council directed staff to add a term to the Franchise Agreement requiring that the City be notified should the pipeline be activated for transport purposes. Following that meeting, Phillips 66 has agreed to add the following language to Article 1, Section B, “Limitations Upon Grant,” of the Franchise Agreement:
“As of the effective date of this Agreement, the pipelines herein described are either in abandoned or active status, per the California Office of the State Fire Marshal; said active lines have been temporarily idled, meaning that no oil or gas, or any other material or substance authorized by this franchise, is currently being transported through the pipelines at this time.
Grantee must give notice to the City 60 days prior to resuming the transportation of such authorized substances through the pipelines. This is a material term of the franchise, and failure to provide such notice constitutes a default under this Agreement.”
This added term will provide the City with 60 days’ advance notice of Phillips 66 resuming pipeline operations.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Ordinance granting Phillips 66 Pipeline, LLC a pipeline franchise;
2. Do not adopt the Ordinance; or
Item 9.g.
City Council
Adoption of an Ordinance Granting to Phillips 66 Pipeline, LLC, a Pipeline Franchise Agreement
December 9, 2025
3. Provide other direction to staff.
ADVANTAGES:
Adoption of the proposed Ordinance granting the Pipeline Franchise Agreement, pursuant to the process set forth in the Public Utilities Code, as required by law. This agreement provides assurances that the subject pipeline system will meet State testing, inspection, and compliance requirements while providing the City with cost and liability protection in case of a safety incident.
DISADVANTAGES:
Should the City Council not adopt the Ordinance, the Phillips 66 pipeline franchise will terminate. Phillips 66 would be required to abandon the line in place or remove the line and possibly re-route it around city limits. If Phillips 66 did choose to re-route the line around the City, that new line could result in community impacts (particularly if the line were located near City limits) without the control offered by direct regulation through the franchise agreement. Phillips 66 is a regulated pipeline corporation and common carrier by the California Public Utilities Commission. Therefore, even if the franchise is not granted, Phillips 66 may be required by CPUC regulations to continue providing pipeline service until an alternative is approved by the CPUC. To the extent Phillips 66 continues service through the City, the company would be required to pay the franchise fee and abide by the franchise until such time as service can be discontinued.
ENVIRONMENTAL REVIEW:
Find that the adoption of an Ordinance granting to Phillips 66, a Pipeline Franchise 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.) No new development or intensification of development would result from the franchise, therefore there is no potential for significant effects on the environment.
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. Ordinance
2. Ordinance No. 613
3. Executed Letter of Understanding
4. OSFM, Pipeline Safety Division Response Letter
5. Preliminary Post Inspection Findings
ATTACHMENT 1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE GRANTING TO PHILLIPS 66, LLC A PIPELINE FRANCHISE
AGREEMENT TO CONSTUCT, OPERATE, AND MAINTAIN PIPELINE
FOR THE TRANSPORT OF OIL, AND OTHER SPECIFIED MATERIAL,
IN THE CITY OF ARROYO GRANDE
WHEREAS, Public Utilities Code section 6201 et seq. authorizes the City Council to grant a utility a franchise to use, or to lay and use, pipes and appurtenances for transmitting and distributing oil or products thereof in, along, across, upon, over, and under the public streets, ways, and alleys within a city; and WHEREAS, on November 9, 1999, the City Council granted a franchise to Unocal California Pipeline Company, a California corporation (“Unocal”), for a term of 10 years to construct, operate, and maintain pipelines for the transportation of oil and other specified products in the City of Arroyo Grande (“City”); and WHEREAS, on August 25, 2009, the City Council adopted Ordinance No. 613 reissuing the franchise to ConocoPhillips Pipeline Company, a Delaware corporation and successor-in-interest to Unocal (“ConocoPhillips”), for a term of 15 years; and WHEREAS, on July 18, 2024, Phillips 66 Pipeline, LLC, a Delaware limited liability company, California common carrier, and successor-in-interest to ConocoPhillips (“Phillips 66”), requested an extension and renewal of the franchise; and WHEREAS, Phillips 66 has indicated its interest in renewing its franchise, and if granted the franchise, will pay to the City during the life of such franchise, a sum equivalent to the compensation provided in Public Utilities Code section 6231.5, which provides for the applicable base rate, as defined therein, multiplied by the Consumer Price Index for the area; and further that in the event the California Legislature amends the Franchise Act of 1937 to permit a franchise payment greater than the percentage formula specified herein, the franchise fee paid by Phillips 66 shall be automatically changed to the level expressed by the Legislature; and WHEREAS, the City desires to extend and renew the franchise on the same or similar terms and conditions of the existing franchise; and WHEREAS, pursuant to Public Utilities Code section 6232, prior to considering approval of a pipeline franchise, on October 28, 2025, the City Council adopted Resolution 2025-075 declaring the City’s intention to grant a pipeline franchise to Phillips 66; and
WHEREAS, the City Clerk published a public hearing notice of the passage of the resolution of intention regarding the franchise agreement on November 6, 2025 in New Times; and
WHEREAS, the City Council of the City of Arroyo Grande conducted a public hearing regarding the City Council’s intention to grant a pipeline franchise agreement to
ORDINANCE NO.
PAGE 2
Phillips 66 on November 25, 2025, in accordance with Public Utilities Code section 6232; and
WHEREAS, the City Council took action on the franchise application in accordance with the City’s standard ordinance adoption procedure to introduce the Ordinance at the November 25, 2025, meeting; and
WHEREAS, all prerequisites to the adoption of this Ordinance have occurred.
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:
SECTION 1: The above recitals and findings are true and correct and are incorporated herein by this reference.
SECTION 2: Pursuant to Public Utilities Code section 6232, the City Council of the City of Arroyo Grande grants Phillips 66 a franchise of fifteen (15) years to construct, operate, and maintain pipelines for the transportation of oil, and other specified products, in the City of Arroyo Grande, California, a copy of which is attached hereto and incorporated herein by this reference as shown in Exhibit “A” (the “Franchise Agreement”). The City Manager is authorized to execute the Franchise Agreement, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney. Delivery by Phillips 66 of a signed copy of the Franchise Agreement to the City Clerk within the statutorily required time period will constitute a filed written acceptance of the franchise pursuant to Public Utilities Code section 6235.
SECTION 3: The City Council finds that adoption of this Ordinance 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.) No new development or intensification of development would result from the franchise, therefore there is no potential for significant effects on the environment.
SECTION 4: This Ordinance shall become effective 30 days after adoption.
SECTION 5: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance.
SECTION 6: This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage.
ORDINANCE NO.
PAGE 3
On motion of Council Member , seconded by Council Member , and on the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this day of December 2025.
ORDINANCE NO.
PAGE 4
CAREN RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
ORDINANCE NO.
EXHIBIT A
FRANCHISE AGREEMENT BETWEEN THE CITY OF ARROYO
GRANDE AND PHILLIPS 66 PIPELINE LLC, FOR A FRANCHISE TO
CONSTRUCT, OPERATE, AND MAINTAIN PIPELINES FOR THE
TRANSPORTATION OF OIL, AND OTHER SPECIFIED MATERIALS,
IN THE PUBLIC STREETS OF THE CITY OF ARROYO GRANDE,
STATE OF CALIFORNIA
EXHIBIT A
TABLE OF CONTENTS
Page
ARTICLE 1 NATURE OF FRANCHISE............................................................................ 3 ARTICLE 2 APPURTENANCES....................................................................................... 6 ARTICLE 3 LOCATION OF PIPELINES........................................................................... 6 ARTICLE 4 CONSTRUCTION OF NEW PIPELINES....................................................... 7 ARTICLE 5 COMMENCEMENT OF CONSTRUCTION ................................................... 7 ARTICLE 6 MAPS AND REPORTS TO BE FURNISHED................................................ 8 ARTICLE 7 COMPENSATION TO THE CITY.................................................................. 8 ARTICLE 8 EMERGENCY EQUIPMENT AND CREWS ................................................ 10 ARTICLE 9 REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE TO CITY STREETS........................................................................................................ 11 ARTICLE 10 REARRANGEMENT OF FACILITIES........................................................ 11 ARTICLE 11 GRANTEE’S REMOVAL OR ABANDONMENT OF FACILITIES............... 13 ARTICLE 12 COMPLETION OF WORK......................................................................... 16 ARTICLE 13 RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES.................... 16 ARTICLE 14 BOND.........................................................................................................17 ARTICLE 15 INSURANCE ............................................................................................. 18 ARTICLE 16 INDEMNIFICATION BY GRANTEE........................................................... 19 ARTICLE 17 CHANGES IN CONTROL OF FRANCHISE .............................................. 18 ARTICLE 18 WAIVER OF BREACH ...............................................................................22 ARTICLE 19 DEFAULT.................................................................................................. 23 ARTICLE 20 SCOPE OF RESERVATION ..................................................................... 23 ARTICLE 21 NOTICE......................................................................................................24 ARTICLE 22 SUCCESSORS ......................................................................................... 24 ARTICLE 23 ACCEPTANCE OF FRANCHISE .............................................................. 24 ARTICLE 24 FORCE MAJEURE.....................................................................................25 ARTICLE 25 LIQUIDATED DAMAGES.......................................................................... 25 ARTICLE 26 ATTORNEY’S FEES ................................................................................. 26 ARTICLE 27 FAILURE TO COMPLY............................................................................27 ARTICLE 28 COMPLIANCE WITH APPLICABLE LAW................................................ 27 ARTICLE 29 SEVERABILITY.........................................................................................27 ARTICLE 30 EFFECTIVE DATE....................................................................................27
EXHIBIT A
1 RECITALS
WHEREAS, the Franchise Act of 1937 (the “Act”) codified at California Public Utilities Code section 6201 et seq. authorizes cities to grant franchises to public utilities to use, or to construct or lay and use, under, along, across, or upon the public streets, ways and alleys and places within the city, facilities that are part of a pipeline system transmitting oil or products thereof;
WHEREAS, on December 1, 2009, the City Council of the City of Arroyo Grande (“City”) approved a franchise agreement with ConocoPhillips Pipe Line Company, a Delaware corporation and California public utility and common carrier, for a term of fifteen (15) years, granting the pipeline company a franchise to use, or to construct or lay and use, pipeline facilities and appurtenances under, along, across, or upon the City’s streets for the purposes of transmitting oil or products thereof;
WHEREAS, on July 10, 2012, the City adopted Resolution No. 4470 consenting to the transfer of the franchise from ConocoPhillips Pipe Line Company to Phillips 66 Pipeline LLC, a Delaware limited liability company (“Phillips 66”), pursuant to Article 17 of the franchise, which continues to operate oil pipelines within the City’s streets and otherwise controls and holds the franchise;
WHEREAS, the franchise with Phillips 66 expired on December 1, 2024 and Phillips 66 has applied to the City for the re-issuance of the franchise on similar terms and conditions; and
WHEREAS, Phillips 66 desires to continue to use City streets for the purposes of transmitting oil and products thereof and the City and Phillips 66 have agreed to enter into a new franchise for such purpose. The City and Phillips 66 may be referred to individually as Party, and collectively as the Parties.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
ARTICLE 1
NATURE OF FRANCHISE
A. Grant of Franchise and Terms.
1. The City hereby grants to Phillips 66 (“Grantee”), for the term which
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2 shall begin on the effective date of this franchise and which term shall be for fifteen (15) years ending at 5:00 p.m. Pacific Prevailing Time on January 8 , 2041, subject, however, to all the limitations and restrictions herein contained, the non-exclusive right, privilege and franchise to, within the City, construct, erect, maintain, operate, repair, renew, abandon, and change the size of and remove pipelines, not to exceed twelve (12) inches nominal internal diameter, for the transportation of oil, oil products, hydrocarbon gases and other gases necessary for the operation and maintenance of the pipelines, water and mixtures thereof, movable by pipeline, in, under, along, and across the public streets, ways, alleys and places (hereinafter, “streets”), more fully described and shown on the site maps in Exhibit A-1, attached hereto and made a part hereof (the “Franchise Agreement”).
2. Unless otherwise specifically stated, the following provisions shall govern the interpretation and construction of the franchise granted herein:
(a) This franchise shall supersede any and all prior franchise agreements between the parties and/or their predecessors in interest, including, but not limited to, that Franchise Agreement granted to Unocal California Pipeline Company, dated November 9, 1999, and that Franchise Agreement granted to ConocoPhillips Pipe Line Company, dated December 1, 2009, and shall include the right, for the period and subject to the conditions hereof, to construct, erect, maintain, operate, repair, renew, abandon and change the size and remove said pipelines, if any, of Grantee, as laid and constructed in said streets.
(b) The terms and conditions of this franchise shall also apply to any pipeline or other facilities of Grantee which are located within the right of way of any public road or street at the time such road or street becomes a City street, except in cases where Grantee maintains easement rights that are prior to or pre-date the establishment of such public road or street.
(c) Grantee shall not be relieved of its obligation to promptly comply with any provision of this franchise by failure of the City to enforce prompt compliance. (d) Any right or power conferred, or duly imposed upon any officer, employee, department, or other City entity, by the terms of this franchise, may be legally transferred to any other City officer, employee, department, or other City entity. (e) Grantee shall have no recourse whatsoever against the City for any loss, cost, expense, or damage suffered by Grantee and arising out of any provision or requirement of this franchise or its lawful enforcement by the City. (f) This franchise does not relieve Grantee of any applicable requirements of the Arroyo Grande Municipal Code or of any applicable federal, state, or county law, ordinance, rule, regulation, or specification, including, but not limited to, any requirement relating to street work, street excavation permits, or the use, removal or relocation of property in streets, or the payment of applicable permit fees, except as specifically prescribed herein. This franchise is non-exclusive. Neither the granting of this franchise nor any of the provisions contained herein shall be construed to prevent the City
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3 from granting any identical or similar franchise to any other person or entity. (g) The compensation provided for in this franchise is for (i) the rights and privileges granted by this franchise; and (ii) the right and privilege granted to the Grantee to construct, erect, maintain, operate, repair, renew, abandon and change the size of and remove said pipelines pursuant to this franchise within the City’s streets. The City expressly reserves the right to impose and collect from Grantee, on a non- discriminatory basis, processing and inspection fees from street cutting and excavation permits to the extent such fees are imposed generally on all nongovernmental applicants for such permits within the City and the amount of such fees does not exceed the reasonable costs to the City of processing such permits and inspecting the work done thereunder. (h) Any activities involving the use of a pipeline system for the transmitting of oil, products thereof, hydrocarbon gases and other gas necessary for the operation and maintenance of the pipelines, water and mixtures thereof, which are not specifically authorized under this franchise are prohibited under this franchise. Any telecommunication or other uses not authorized in this franchise must be approved by the City, in its sole discretion, under a separate franchise. (i) If any provision of this franchise, or the application of this franchise to any person or circumstance is held invalid by a court of competent jurisdiction or is not in compliance with any requirement of the California Public Utilities Commission, the City, or any other federal or state body or agency having jurisdiction over Grantee’s franchise activities, the remainder of this franchise, or the application of this franchise to persons or circumstances other than those to which it is held invalid or not in such compliance, shall not be affected thereby.
B. Limitations Upon Grant.
1. No privilege or exemption is granted or conferred by this franchise, except those specifically prescribed herein.
2. Any privilege claimed under this franchise by Grantee in any street shall be subordinate to any prior lawful occupancy of the street.
3. The rights and privileges of this franchise are granted solely to Grantee, except as provided within this franchise. This franchise is not be to sold, transferred, leased, assigned, or disposed of as a whole or in part either by forced sale, merger, consolidation, or otherwise, without the City’s prior written consent as described in Article 17, infra, or as otherwise expressly provided herein.
4. As of the effective date of this Franchise Agreement, the pipelines herein described are either in abandoned or active status, per the California Office of the State Fire Marshal; said active lines have been temporarily idled, meaning that no oil or gas, or any other material or substance authorized by this franchise, is currently being transported through the pipelines at this time. Grantee must give notice to the City 60 days prior to resuming the transportation of such authorized substances through the pipelines.
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4 This is a material term of the franchise, and failure to provide such notice constitutes a default under this Franchise Agreement.
C. Rights Reserved to the City.
1. The rights reserved to the City under this franchise are in addition to all other rights of the City, whether authorized by the Arroyo Grande Municipal Code, or any other federal, state, or county law, rule, or regulation. No action, proceeding or exercise of a right shall affect any other rights which may be held by the City. Grantee, by acceptance of this franchise, shall be bound thereby and to comply with any action or requirement of the City in its exercise of any such right power.
2. The City shall have the power and right at all times during the term of this franchise to require Grantee to conform to the laws, rules and regulations governing the operation of pipelines now or hereafter adopted by the City Council to the extent permitted by law.
3. The City may enforce, when not preempted by other state or federal authority and to the maximum extent permitted by law, the inspection and testing of pipelines, pursuant to state and federal standards. Failure to meet state and/or federal standards shall result in liquidated damages to the City for each day of noncompliance after the initial ten (10) days of non-compliance, unless the oil pipeline is shutdown.
ARTICLE 2
APPURTENANCES
The Grantee shall have the right, subject to the prior written approval of the City Engineer, to construct and maintain such traps, manholes, conduits, valves, appliances, attachments, and appurtenances (hereinafter, “appurtenances”), as may be necessary for the proper maintenance and operation of the pipelines under said franchise. Said appurtenances shall be so located as to conform to any order of the City Engineer in regard thereto and not to interfere with the use of the streets for travel. The Grantee shall have the right, subject to such ordinances, rules, or regulations as are now or may hereafter be in force, to make all necessary excavations in said streets for the construction and repair of said pipelines and appurtenances subject, to the prior written approval of the City Engineer. “Appurtenances” shall also include any adjunct communications lines and/or conduits as coaxial cable, optical fiber, wire, or other transmission lines or forms of transmission, and associated equipment and devices located in, upon, along, across, under or over the streets of the City, the sole function of which is to monitor or control the operation or safety of the pipeline system via the distribution of video, audio, voice, or data signals. An adjunct communications line shall not include any facility which distributes, through any means, to subscribers or persons other than Grantee, the signal of one or more broadcast television or radio stations or other sources of video, audio, voice, or data signals.
ARTICLE 3
LOCATION OF PIPELINES
Any pipeline hereinafter laid shall be located as directed in writing by the City
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5 Engineer. Repairs to the streets shall be pursuant to the City’s laws, regulations and policies then in effect.
ARTICLE 4
ARTICLE4 CONSTRUCTION OF NEW PIPELINES
A. Terms of Construction. The pipelines and appurtenances laid, constructed or maintained under the provisions of this franchise shall be installed, maintained, and inspected by the Grantee in a satisfactory, safe, and workmanlike manner, of good material, and in conformity with all applicable ordinances, rules, or regulations now or hereafter adopted or prescribed by the City Council, state, or federal authorities.
B. Restoration of Streets. The work of laying, constructing, maintaining, operating, renewing, repairing, changing and moving any of the pipeline system contemplated by this franchise and all other work in exercise of this franchise shall be conducted according to the provisions of the City’s encroachment ordinances and other rules from time to time prevailing, and otherwise in accordance with applicable federal and state law and City ordinances, and with the least possible hindrance or interference to the use of City streets by the public, and Grantee shall provide all necessary warning, safety and traffic control devices as are or may be required by City, state or federal regulations. All excavations shall be pursuant to the City’s laws, regulations and policies then in effect. The City streets shall be placed in as good and serviceable condition as existed at the beginning of this work, to the satisfaction of the City Engineer and pursuant to the City’s laws, regulations and policies then in effect.
ARTICLE 5
COMMENCEMENT OF CONSTRUCTION
The Grantee, in good faith, shall commence with the work of laying any new pipelines and appurtenances within four (4) months from the date of the written approval of the work by the City, and if any such pipelines be not so commenced within said time, this franchise shall be declared forfeited; provided, however, that if the Grantee is maintaining and operating an existing pipeline system consistent with this Franchise Agreement over the route referred to in Article 1 herein, it shall be deemed to be in compliance with the foregoing.
The Grantee shall not commence the construction of any new pipelines under the provision of this franchise or add to such existing pipeline system, if any there be, until it first shall have applied for and obtained a permit therefor from the City Engineer and the Director of Community Development, where appropriate.
The application of the Grantee for the construction of new pipelines shall show the following facts: the length, approximate depth and proposed location of the pipeline proposed to be laid or constructed, the size and description of the pipeline intended to be used, and such other facts as the City Engineer may require. The Grantee shall pay any and all processing and inspection fees of the City. Upon the completion of the construction of any pipelines constructed pursuant to said franchise, the Grantee shall render a statement to the City showing in detail the permit or permits issued and the total length of pipeline, the construction of which was authorized under such permit, or permits, and the total length of
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6 pipeline actually laid, and the Grantee shall accompany said report with payment to the City for the pipelines which have actually been constructed under said franchise at the rate of $100 per mile.
ARTICLE 6
MAPS AND REPORTS TO BE FURNISHED
A. Within six (6) months of the effective date of this Franchise Agreement for existing pipelines, and within ninety (90) days following the date in which any additional pipelines have been laid or constructed under this franchise, the Grantee shall file a map in such form as may be required by the City Engineer showing the approximate location and size of all its facilities then in place, and shall, upon installation of any additional facilities or upon removal, change or abandonment of all or any portion thereof, file a revised map or maps showing the location and size of all such additional and/or abandoned facilities as of said date. Cathodic protection is to be used for all facilities installed or maintained pursuant to this franchise. For facilities previously in liquid service and where the liquids have been removed and the facilities inerted, or for facilities previously in gas service that are not pressurized, cathodic protection shall be maintained consistent with City or other legal requirements. A description of all the protective devices shall be furnished to the City Engineer which shall show the location and types of anodes, including a description of methods to be used as a protection against corrosion and electrolytic leakage.
B. Grantee shall file with the City’s Director of Administrative Services, within sixty (60) days after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise and within sixty (60) days after the expiration of each calendar year thereafter, two copies of a report verified by the oath of Grantee or by the oath of a duly authorized representative of Grantee, showing, for the immediately preceding franchise period, the length of pipelines in streets, the nominal internal diameter of such pipelines, the rate per foot per year (when applicable) and the total amount due to the City. In this report, Grantee shall also show any change in franchise footage since the last franchise report, segregating such footage as to new pipelines and adjunct communications lines laid, old pipelines and adjunct communications lines removed, and old pipelines and adjunct communications lines abandoned in place.
C. Grantee shall file with the City Engineer within sixty (60) days after the end of the calendar year a report, in duplicate, showing the permit number of each permit obtained for the installation of new pipelines during the immediately preceding franchise report period, together with the length and size of said pipelines.
ARTICLE 7
COMPENSATION TO THE CITY
A. During the term of this franchise, Grantee shall pay to the City annual fees for this franchise, said fees to be those fees prescribed by the California Public Utilities Code section 6231.5, provided that the rate shall be increased each calendar year to the maximum rate established in subsequent amendments of the California Public Utilities Code or as
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7 allowed by law. Annual payments to be made pursuant to this franchise shall be due and payable in arrears April 1 of each year of this franchise. The first annual fees payment hereunder shall be prorated for the remainder of the current calendar year based on a 365- day year.
At the time of payment of fees by Grantee, Grantee shall file a verified statement with the Director of Administrative Services, with a copy to the City Engineer, showing in detail the number of lineal feet and the diameter thereof, expressed in inches, of pipelines covered by this franchise during the previous calendar year, or portion thereof.
The compensation provided for in this Article shall be increased after the first year of the franchise and each subsequent year during the term of this franchise, to the maximum rate established in subsequent amendments of the California Public Utilities Code or as allowed by law.
In addition to the increase in fees above described, the compensation provided for in this Article shall be increased annually as provided in Section 6231.5 which provides that the applicable base rate, as defined therein, shall be multiplied by the Consumer Price Index for the area, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 100.0. Under no circumstances shall the multiplying factor be less than one.
Nothing regarding the re-issuance of this franchise to Grantee shall re-set the current fees paid for by Grantee or otherwise modify the formula or base rate and applicable Consumer Price Index adjustments applicable to past or current franchises, and such fees and adjustments shall continue for the life of this franchise.
Notwithstanding the provisions as otherwise stated in this Article and franchise, the Grantee shall be liable to pay the City the annual fee for the period to and including the date of either actual removal of the facilities or the effective date of the abandonment “in place,” and until the Grantee shall have fully complied with all of the provisions of law relative to such abandonments.
In the event of partial abandonment of facilities as provided in this Franchise Agreement, or in the event of partial removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the streets by such facilities shall be reduced by the length and diameter of pipelines abandoned or the actual pipeline removed beginning with the first day of the next succeeding franchise year, and for each franchise year thereafter; provided, however, that the base rate shall be modified to reflect the adjustment (per this Article) applicable to such abandoned or removed pipeline at the beginning of the next succeeding franchise year following abandonment or removal.
Grantee shall pay to the City, upon demand, the cost of all repairs made by the City to public property arising out of the operations of the Grantee under this franchise.
Any fees charged or expenses charged to Grantee by City pursuant to this Article, or
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8 any other provision of this Franchise Agreement, unless disputed in good faith, shall be paid when due or shall be deemed delinquent. Any undisputed delinquent amounts shall be charged a ten percent (10%) penalty and, in addition, shall accrue interest commencing thirty (30) days after the due date, at a rate of one and one-half percent (1.5%) per month (based upon a 30-day calendar month) or any lesser amount if required by law. Any neglect, omission or refusal by said Grantee to pay any undisputed delinquent franchise fee with any late charges, within thirty (30) days of delinquency, at the times or in the manner herein provided, shall be grounds for a declaration of a forfeiture of this franchise and of all rights hereunder.
Payments are to be made to the City of Arroyo Grande, Director of Administrative Services, 300 E. Branch Street, Arroyo Grande, CA 93420, or at such place as the City shall, from time to time, designate in writing.
B. In addition to any other fee specified herein, Grantee shall pay the City a granting fee of Fifteen Thousand Dollars ($15,000.00) and an additional Five Thousand Dollars ($5,000.00) for City transactional costs associated with this franchise within thirty (30) days after the date the City approves this franchise.
C. Grantee shall pay the City, within sixty (60) days after the end of each calendar year, for each year during the life of this franchise, an initial construction charge calculated at the rate of One Hundred Dollars ($100.00) per mile or fraction thereof for all new pipelines laid pursuant to this Franchise Agreement during the preceding year.
D. The City shall have the right to inspect Grantee’s pipeline accounting and other records relating to its annual report and to audit and re-compute any and all accounts payable under this franchise. Costs of audit shall be borne by Grantee when an audit results in an increase of more than five percent of Grantee’s annual payments to the City.
Acceptance of any payment shall not be construed as a release, waiver, acquiescence, or accord and satisfaction of any claim the City may have for further or additional sums payable under this franchise or for the performance of any other obligation hereunder.
ARTICLE 8
EMERGENCY EQUIPMENT AND CREWS
At all times during the term of this franchise, the Grantee shall maintain or arrange for, on a 24-hour-a-day basis, adequate emergency equipment and a properly trained emergency crew within a reasonable distance so as to provide a response time of no more than ten (10) minutes from any pipelines, appurtenances and facilities installed or maintained pursuant hereto for the purpose of monitoring the leak detection system and the communications systems if applicable, and of shutting off the pressure and the flow of contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause or nature whatsoever. At all times during the term of this franchise, Grantee shall provide City Engineer with the name, address and telephone numbers of Grantee’s emergency crew supervisors.
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9 ARTICLE 9
REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE TO CITY STREETS If any portion of any street shall be damaged by any reason related to the Grantee’s operations pursuant to this franchise including defective facilities laid or constructed under this franchise, Grantee shall, at its own expense, repair any defect of its facilities and put such street in as good condition as it was before such damage was incurred, to the satisfaction of the City Engineer. Repairs to streets shall be pursuant to the City laws, regulations and policies then in effect shall require repairing the asphalt for at least one- half (1/2) the width of the street in order to assure uniformity of the street section. If Grantee, within ten (10) days after receipt of written notice from the City Engineer instructing it to repair such damage, fails to commence to comply with such instruction, or, thereafter, fails diligently to prosecute such work to completion, then the City Engineer immediately may take any actions which are, in the sole judgment and discretion of the City Engineer, necessary to repair said damage. Any and all costs and expenses so incurred shall be the sole responsibility of Grantee including the current rate of overhead being charged by the City for reimbursable work, which cost and expense, by the acceptance of this franchise, Grantee agrees to pay upon demand. If such damage constitutes an immediate danger to public health or safety requiring the immediate repair thereof, the City Engineer, without notice, may repair such damage and Grantee agrees to pay the cost thereof upon demand.
ARTICLE 10
REARRANGEMENT OF FACILITIES
A. Expense of Grantee.
1. If any of the Grantee’s facilities, in the opinion of the City Engineer, shall endanger the public or interfere with the use of any street by the public or, for public purposes, the City shall have the right to require the Grantee, and the Grantee shall repair, replace, move, alter or relocate the same (hereinafter, “rearrangement”) to avoid such danger, interference or obstruction, in conformity with the written notice of the City Engineer, at the Grantee’s sole expense.
2. The City reserves the rights for itself and for all other public entities which are now or may later be established, to change the grade, to change the width or to alter or change the location, of any street which is located within the service area for which this franchise is granted. If any of the facilities heretofore or hereafter constructed, installed or maintained by Grantee pursuant to this franchise on, along, under, over, in, upon or across any street are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvement, repair, construction, reconstruction, widening, alteration or relocation of the street, or any work or improvement upon the street, Grantee shall relocate permanently or temporarily, as directed at the sole discretion of the City Engineer, any such facility at no expense to the City or other public entity upon receipt of a written request from the City Engineer to do so, and shall commence such work, by beginning engineering, surveying, or other pre- construction activities, on or
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10 before the date specified in such written request, which date shall be not less than ninety (90) days from receipt of (a) final plans of the public works improvement project approved by the City, and (b) all requisite governmental permits and authorizations necessary to undertake the pipeline facility location. Grantee shall thereafter diligently prosecute such work to completion. Should Grantee neglect or fail to relocate its facilities in a timely manner after receipt of any such notice, Grantee shall be responsible for and shall reimburse the City for any and all additional and properly incurred costs or expenses incurred by City due to or resulting from such delay in the relocation of the facilities plus the current rate of overhead being charged by the City for reimbursable work. Grantee’s obligation for such damages and/or costs will not apply if its failure to relocate arises from the sole proven negligence of the City or a third party. If such street is subsequently constituted a state highway, while it remains a state highway the rights of the State of California shall be as provided in Streets and Highways Code section 680.
3. The City reserves the right, to lay, construct, repair, alter, relocate and maintain subsurface, surface or other improvements of any type or description in a governmental but not proprietary capacity within, over or under the streets over which this franchise is granted. If the City, or other public entity finds that the location or relocation of such subsurface, surface or other improvements conflicts with the facilities laid, constructed or maintained under this franchise, whether such facilities were laid before or after the improvements of the City, or such public entity, Grantee shall relocate permanently or temporarily, as directed at the sole discretion of the City Engineer, any such facility at no expense to the City, or other public entity, upon receipt of a written request from the City Engineer to do so and shall commence such work, by beginning engineering, surveying or other pre- construction activities, on or before the date specified in such written request, which date shall not be less than ninety (90) days from receipt of (a) final plans of the public works improvement project approved by the City, and (b) all requisite governmental permits and authorizations necessary to undertake the pipeline facility location. Repairs to the street shall be pursuant to the City’s laws, regulations and policies then in effect. The Grantee shall thereafter diligently prosecute such work to completion. Should Grantee neglect or fail to relocate its facilities in a timely manner after receipt of any such notice, in addition to the liquidated damages as set forth in Article 25, Grantee shall be responsible for and shall reimburse the City for any and all additional costs or expenses incurred by City due to or resulting from such delay in the relocation of the facilities plus the current rate of overhead being charged by the City for reimbursable work. Grantee’s obligation for such damages and/or costs will not apply if its failure to relocate arises from the sole proven negligence of the City or its agents or contractors. If such street is subsequently constituted a state highway, while it remains a state highway the rights of the State of California shall be as provided in Streets and Highways Code Section 680.
4. If Grantee, after the notice provided for herein from the City, or other public entity, fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, over, across, or above any street, or to pave, surface, grade, repave, resurface, or regrade as required pursuant to any provision of this Franchise Agreement, the City or public entity may cause the work to be done, and shall keep an itemized account of the entire costs thereof, and Grantee shall defend, indemnify and hold harmless the City,
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11 its officers and employees from any liability which may arise or be claimed to arise from the moving, cutting or alteration of any of Grantee’s facilities, or any necessary relocation of the facilities of other utilities.
5. Grantee agrees to, and shall, reimburse the City, or other public entity for such cost within thirty (30) days after presentation to Grantee of an itemized account documenting properly incurred costs arising out of the actions taken in this Section A of Article 10.
B. Expense of Others.
1. The City shall have the right to require the Grantee to rearrange any part of the Grantee’s facilities for the accommodation of any person, firm, or corporation.
When such rearrangement is done for the accommodation of any person, firm or corporation, other than one of said utility systems owned or operated by the City, the cost of such rearrangement shall be borne by the accommodated party. Such accommodated party, in advance of such rearrangement, shall deposit with the Grantee or the City Clerk cash or a corporate surety bond in an amount, as in the reasonable discretion of the City Engineer, shall be required to pay the costs of such rearrangement, and such accommodated party shall execute an instrument agreeing to defend, indemnify and hold harmless the Grantee and the City from any and all damages or claims caused by such rearrangement.
2. The rearrangement referred to in this Article 10, Section B.1 shall be accomplished in conformity with the written notice of the City Engineer.
C. Rearrangement of the Facilities of Others.
Nothing in this franchise shall be construed to require the City to move, alter or relocate any of its facilities upon said streets, at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation now or hereafter owning a public utility system of any type or nature, to move, alter or relocate any part of its system upon said streets for the convenience, accommodation or necessity of the Grantee.
D. Notice.
The Grantee shall be given not less than ninety (90) days written notice of any rearrangement of facilities which the Grantee is required to make hereunder. Such notice shall specify in reasonable detail the work to be done by the Grantee and shall specify the time that such work is to be accomplished. In the event that the City shall change the provisions of any such notice given to the Grantee, the Grantee shall be given an additional period of not less than thirty (30) days to initiate such work.
ARTICLE 11
GRANTEE’S REMOVAL OR ABANDONMENT OF FACILITIES
A. The City reserves the right to require Grantee to remove its facilities from the
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12 City streets in the event of the expiration, revocation or termination of this Franchise Agreement or at any time thereafter with respect to those facilities abandoned in place, or for the facilities affected by the permanent discontinuance of all or a portion of the facilities.
Further, so long as any facilities installed under the authority of this franchise remain in a City street, Grantee shall maintain a performance bond, security fund, or other form of collateral, acceptable to the City, sufficient to cover the cost of the removal of all such facilities from the City streets.
B. At the expiration, revocation or termination of this Franchise Agreement or of the permanent discontinuance of the use of all or a portion of its facilities, Grantee shall, within thirty (30) days thereafter, make written application to the City Engineer for authority either:
1. To abandon all or a portion of such facilities in place; or
2. To remove all or a portion of such facilities. Such an application shall describe the facilities desired to be abandoned, their location with reference to City streets, and shall describe with reasonable accuracy the physical condition of such facilities. As part of the application for removal or abandonment of these facilities, Grantee shall submit a soil test, taken within thirty (30) days of the submittal of the application, for those materials to be tested annually pursuant to federal, state and local laws. A soil test shall be taken along that portion of the pipeline to be removed or abandoned at such intervals as directed in writing by the City Engineer and reasonably consistent with established sampling protocols. The City Engineer shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and the conditions under which such proposed abandonment or removal may be effected. The City Engineer shall then notify Grantee of the City Engineer’s determinations. Grantee shall also obtain permits to abandon or remove the pipeline from the City for all pipelines prior to the removal, abandonment or discontinuation of use of all or a portion of Grantee’s facilities. The City also reserves the right to require removal of Grantee’s facilities abandoned in place at any time following the expiration, revocation or termination of this franchise. Grantee shall be required to meet the bonding, insurance, indemnification and annual franchise fee requirements of this franchise, for facilities abandoned in place.
C. Within thirty (30) days after receipt of Notification from the City Engineer pursuant to Article 11.B.2 above, Grantee shall apply for a permit from the City to abandon or remove the facility.
D. Grantee shall, within sixty (60) days after obtaining such a permit, commence and diligently prosecute to completion the work authorized by the City permit.
E. In the event Grantee applies to remove its facilities, and the City Engineer determines that any or all of the facilities cannot be removed due to a moratorium preventing work in the City streets, the payment of annual franchise fees may be deferred during any such moratorium period, provided that Grantee promptly removes its facilities after notice by the City of the cessation of the moratorium and direction to remove such facilities. In the event Grantee does not promptly remove such facilities as directed, any deferred annual franchise fees shall be due and payable within thirty (30) days of notice to pay.
F. Failure to Comply with City’s Orders Regarding the Removal or Abandonment
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13 of Facilities.
1. If any orders or prescribed conditions relating to the abandonment of any facilities are not complied with, the City may impose such additional orders and conditions as the City Engineer deems appropriate, including an order that the Grantee remove any or all of such facilities. Grantee shall comply with such additional orders.
2. In the event that Grantee fails to comply with the terms and conditions of abandonment or removal as may be required by this Franchise Agreement, and within such time as may be prescribed by the City Engineer, then the City may remove or cause such facilities to be removed at Grantee’s expense. Grantee shall pay to the City all of the costs of removing and disposing of these facilities, as well as returning the rights-of-way occupied pursuant to this franchise to a good and safe condition, including, but not limited to: (a) the cost of all environmental testing the City must conduct to determine the environmental condition of any rights-of-way occupied pursuant to this franchise; (b) all cleanup costs, disposal costs, and any other costs associated with returning these rightsof-way to a safe condition; (c) all costs of removing, storing, and disposing of the Grantee’s facilities; (d) all costs of returning all streets to a safe structural condition; (e) plus the current rate of overhead being charged by the City for reimbursable work.
3. If, at the expiration, revocation or termination of this franchise, or of the permanent discontinuance of the use of all or a portion of its facilities, Grantee, within thirty (30) days thereafter, fails or refuses to make written application for the above- mentioned authority to remove or abandon its facilities, the City Engineer shall make the determination as to whether the facilities shall be abandoned in place or removed. The City Engineer shall then notify Grantee of his determinations. Grantee shall thereafter comply with the applicable provisions of this Article 11.
G. For those facilities Grantee abandons in place, Grantee shall be required to maintain an acceptable performance bond, letter of credit or security fund, as determined by the City, to cover the costs for the removal of any such abandoned facilities from the City streets for any and all periods of time, including those periods following the expiration, revocation or termination of this franchise, that Grantee’s facilities remain in the City streets.
Grantee shall be required to maintain insurance and to indemnify the City pursuant to this Article during any periods the abandoned facilities remain within the City streets. Provided, however, that any pipelines which cannot be removed due to a moratorium preventing work in the City streets may be deferred from the payment of annual franchise fee. The payment of annual franchise fees may be deferred during any such moratorium period, provided that Grantee promptly removes its facilities after notice by the City of the cessation of the moratorium and direction to remove such facilities. In the event Grantee does not promptly remove such facilities as directed, any deferred annual franchise fees shall be due and payable within thirty (30) days of notice to pay.
H. Notwithstanding anything herein to the contrary, City shall have the right take possession of and use Grantees pipeline facilities that are abandoned in place. City shall provide Grantee with written notice of the specific pipeline facility it will take possession of and use. When City takes possession of a pipeline facility abandoned in place, Grantee shall be relieved of its obligation to bond, insure, indemnify and pay annual franchise fees for said facility.
EXHIBIT A
14 ARTICLE 12
COMPLETION OF WORK
In the event that the Grantee fails to commence any work or act and diligently proceed therewith or to complete any such act or work required of the Grantee by the terms of this franchise within the time limits required hereby (and except as is otherwise provided in Articles 1O and 11), the City may cause such act or work to be completed by the City or, at the election of the City, by a private contractor. The Grantee agrees to pay the City, within thirty (30) days after delivery of an itemized bill, the cost of performing such an act or work plus an amount equal to fifteen percent (15%) thereof for City administrative costs, including but not limited to, staff and overhead costs. If the Grantee is dissatisfied with any decision made by the City Engineer hereunder or the determination of the cost of any work performed by the City pursuant to this Franchise Agreement, it may petition the City Council to review the same within sixty (60) days after such decision or determination.
ARTICLE 13
RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES
If the Grantee has not paid the City for such fees and expenses and/or liquidated damages incurred by or payable to the City as hereinabove set forth, the City may institute the following collection procedures (which procedures are in addition to any other rights, in law or equity, which the City has to collect amounts due under this franchise and to enforce the terms of this franchise):
A. The City Engineer shall keep an itemized account of the expenses incurred by the City pursuant hereto, or the fees unpaid by the Grantee. Sixty (60) days after the presentation of the bill to the Grantee therefore, the City Engineer shall prepare and file with the City Clerk a report specifying the work done by the City, or the unpaid fees, the itemized and total cost of the work, a description of the work performed, and the name and address of the Grantee entitled to notice pursuant to this Article.
B. Upon receipt of said report, the City Clerk shall present it to the City Council for consideration. The City Council shall fix a time, date and place for hearing said report, and any protest or objections thereto. The City Clerk shall cause notice of said hearing to be posted in a newspaper of general circulation in the City, and served by certified mail, postage prepaid, addressed to the Grantee as set forth herein. Such notice shall be given at least ten (10) days prior to the date set for hearing and shall specify the day, hour, and place when the City Council will hear and pass upon the City Engineer’s report, together with any objections or protests which may be filed as hereinafter provided.
C. The Grantee may file written protests or objections with the City Clerk at any time prior to the time set for the hearing on the report of the City Engineer. Any such protest or objection must contain a description of the work or unpaid fee or liquidated damages in which the Grantee is interested and the grounds of such protest or objection and the date it was received by him. He or she shall present such a protest or objection to the City Council at the time set for the hearing, and no other protest or objection shall be considered.
D. Upon the day and hour fixed for the hearing, the City Council shall hear and pass upon the report of the City Engineer, together with any such objections or protests,
EXHIBIT A
15 make such revision, correction or modification to the charge as it may deem just; and when the City Council is satisfied with the correctness of the charge, the report (as revised, corrected or modified), together with the charge, shall be confirmed or rejected. The decision of the City Council on the report and the charge, and on all protests or objections, shall be the final and conclusive decision of the City.
E. The City Council may thereupon order that such charge shall be made a personal obligation of the Grantee or assess such charge against the property of the Grantee.
1. If the City Council orders that the charge shall be a personal obligation of the Grantee, it shall direct the City Attorney to collect the same on behalf of the City by use of all appropriate legal remedies.
2. If the City Council orders that the charge shall be assessed against the property of the Grantee, it shall confirm the assessment, cause the same to be recorded on the assessment roll, and thereafter, said assessment shall constitute a special assessment secured by a lien against the property.
F. The validity of any assessment made under the provisions of this franchise shall not be contested in any action or proceeding unless the same is commenced within ninety (90) days after the assessment is placed upon the assessment roll as provided herein.
ARTICLE 14
BOND
A. Grantee shall, concurrently with the filing of and acceptance of award of this franchise, file with the City Clerk, and yearly thereafter, maintain in full force and effect, a bond in favor of the City in the penal sum of Two Million and 00/100 Dollars ($2,000,000.00), with a surety to be approved by the City, conditioned that Grantee shall, well and truly observe, fulfill and perform each and every term and condition of this franchise, and in case of a breach of condition of said franchise, at the discretion of the City, a percentage of the amount of the bond shall be paid to the City according to the following schedule, which cumulative amount for any said breach not cured within the time specified below shall not exceed the full amount of the bond, in addition to any damages recoverable by the City and shall be recoverable from the principal and sureties of the bond:
Following receipt of notice by Certified
Mail sent by the City, failure to cure said
breach of condition, within:
10 business days
30 calendar days
60 calendar days
90 calendar days
Penal sum paid to City:
5% of the amount of the bond
30% cumulative amount of the bond
70% cumulative amount of the bond
100% cumulative amount of the bond
EXHIBIT A
16 B. The faithful performance bond shall continue to exist for one (1) year following the City’s approval of any sale, transfer, assignment or other change of ownership of this franchise, or of the expiration or termination of this franchise. The City may release said bond prior to the end of the one (1) year period upon satisfaction by Grantee of all the obligations under this franchise, as determined in City’s sole discretion.
ARTICLE 15
INSURANCE
A. The Grantee shall procure and shall keep in force for the term of the franchise, at the sole cost and expense of the Grantee, the following insurance. All insurance coverages are to be placed either with insurers which have A.M. Best’s rating of not less than B + VIIIW, or with financially sound stock or mutual insurers of recognized responsibility at the sole discretion and approval of the City. Grantee may satisfy the requirements of this Article 15 by showing proof of self-insurance satisfactory to City, in City’s sole discretion.
Commercial General Liability Insurance {CGL}: Grantee shall maintain in full force and effect Commercial General Liability Insurance with the following coverages:
1. Personal Injury and Bodily Injury, including death resulting therefrom.
2. Property Damage.
The amount of insurance shall be: Single limit on the coverage applying to bodily and personal injury, including death resulting therefrom, property damage, and automobile coverage in the total amount of $5,000,000.00.
The following endorsements must be provided in the CGL policy:
1. If the insurance policy covers on an “accident” basis, it must be changed to “occurrence.”
2. The policy must cover personal injury as well as bodily injury.
3. Blanket contractual liability must be afforded, and the policy must contain a cross-liability or severability of interest endorsement.
4. Broad Form Property Damage Liability must be afforded.
5. Products and Completed Operations coverage must be provided.
6. Sudden and Accidental Pollution Liability Insurance must be provided.
7. The City, its officers, employees and agents shall be named as additional insured under the policy to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Franchise Agreement. The policy shall provide that the insurance will operate as primary insurance to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Franchise Agreement. No other insurance affected by the City, whether commercial or self- insurance, will be called upon to contribute to a loss hereunder.
EXHIBIT A
17 Auto Liability Insurance: Grantee shall maintain in full force and effect Auto Liability Insurance with a combined bodily injury and property damage limit of US $5,000,000 per accident, or per statutory requirements, whichever amount is greater, covering all owned, non-owned, and/or leased vehicles.
The following requirements apply to all insurance to be provided by Grantee:
1. A certificate of insurance or letter of self-insurance shall be furnished to the City upon request.
2. Certificates shall state that the City shall be notified, as soon as is reasonably practicable, but no later than thirty (30) days thereafter, of any cancellation, reduction in coverage or change in any other material matter.
B. Failure on the part of Grantee to procure or maintain required insurance and bonding shall constitute a material breach of this franchise upon which the City may immediately terminate or suspend this franchise however only upon reasonable notice to the Grantee and ability of Grantee to remedy.
ARTICLE 16
INDEMNIFICATION BY GRANTEE
The Grantee, by the acceptance or use of the franchise hereby granted, shall defend and indemnify and shall keep and save free and harmless the City, its officers, agents and/or employees against any and all liability, claims, demands or causes of action which may be asserted, prosecuted or established against them, or any of them, for damage to persons, or property, of whatsoever nature, arising out of the use by it of the City streets hereunder or arising out of any of the operations or activities of the Grantee pursuant to this franchise, whether such damage shall be caused by its own sole negligence or negligence concurrent with the City. Grantee shall not be responsible for any liability, claim, demand, or cause of action which may be asserted, prosecuted or established against the City under the provision of the Worker’s Compensation Act for injury to or the death of any of City’s officers, agents or employees while acting within the scope of their employment.
ARTICLE 17
CHANGES IN CONTROL OF FRANCHISE
A. On and after the Grantee’s acceptance of this franchise as provided in Article 23 herein, Grantee, its partners, its shareholders, or any other person or persons holding an interest in Grantee shall not transfer any interest in the franchise - where such a transfer would lead to another person achieving a twenty-five percent (25%) or greater interest in this franchise - or change control of this franchise, unless the City approves such a transfer or change in control. The City shall approve a request for transfer or change in control only if doing so serves the public interest. As used in this Franchise Agreement, “control” includes actual working control in whatever manner exercised.
1. The City shall deny any such request for transfer or change in control if
EXHIBIT A
18 the transferor or transferee fails to comply with any applicable provision of this Article of this franchise or if the City determines the transferor is in non-compliance with the terms and conditions of this franchise or if a transferee is lacking in experience and/or financial ability to operate the pipelines authorized by this franchise, or if the proposed transfer will be detrimental to the public interest.
B. Both the Grantee and the proposed transferee shall inform the City of any pending change in control of this franchise or of any pending transfer of an interest in the franchise requiring the City’s consent pursuant to this Article, and each shall provide applications containing all documents on which the transfer or change in control is predicated and all documents which the City determines are necessary to evaluate the transfer or change of control. These applications shall be signed by duly authorized representatives of the Grantee and the proposed transferee, with signatures acknowledged by a notary. The appropriate transfer fee described in Article 17.C, infra, shall accompany these applications.
1. Grantee’s application shall include:
(a) Identification and ownership of the proposed transferee in the same detail as if the proposed transferee were an applicant for an initial grant; (b) Current financial statements showing the financial condition of the Grantee as of the date of the application. In this application, the Grantee shall also agree to submit financial statements showing the condition of the franchise as of the closing. Said financial statements shall have been audited and certified by an independent certified public accountant, and shall be submitted within ninety (90) days of the closing.
2. The proposed transferee’s application shall contain current financial statements of the proposed transferee and other such information and data, including but not limited to sources of capital, as will demonstrate conclusively that the proposed transferee has all the financial resources necessary to acquire the pipeline(s), carry out all of the terms and conditions of the franchise, remedy any and all defaults and violations of the provisions of this franchise in the Grantee’s past and present operations, make such other improvements and additions as may be required or proposed to maintain and conduct the services and facilities required under this franchise. The proposed transferee will be required to authorize the release of financial information to the City from financial institutions relating to information supplied by the proposed transferee in support of the application. The proposed transferee’s application shall also include:
(a) A construction schedule, describing type and placement of construction, detail phases of construction, and include map(s) correlated to the phases of construction. Map(s) shall include detail on the location, length, depth, and internal diameter of any planned pipelines.
(b) Copies of any agreements with utility companies for the use of any facilities including, but not limited to, poles, lines and conduit. (c) A description of plans for emergency equipment and personnel enabling the transferee to meet the emergency equipment personnel requirements in Article 8 herein.
EXHIBIT A
19 (d) Any information indicating as specifically as possible that any principal, manager, or associate of the proposed transferee or a parent entity of the proposed transferee has previously been or is currently:
i. A party to a criminal proceeding (involving felonies or misdemeanors) in which any of the following offenses have been charged: fraud, embezzlement, tax evasion, bribery, extortion, jury tampering, obstruction of justice (or other misconduct affecting public or judicial officers in the performance of their duties), false/misleading advertising, perjury, antitrust violations (state or federal), violation of environmental laws or regulations, or conspiracy to commit any of the foregoing; ii. A party to a civil proceeding concerning liability for any of the following: unfair or anticompetitive business practice, antitrust violations (state or federal) including instances in which consent decrees were entered, violations of security laws (state or federal), false/misleading advertising, racketeer influences and corrupt organizations, violation of environmental laws or regulations, or contraband forfeitures; iii. Subject to any penalty, criminal or civil, involving failure to comply with the requirements of a pipeline franchise;
iv. Involved in instituting legal action against its franchising authorities;
v. Involved in revocation/non-renewal of any other franchise; (e) Any other details, statements, information or references pertinent to the subject matter of such application which shall be required or requested by the City or by any provision of law.
(f) An express and unconditional written acceptance of the terms and conditions of this Franchise Agreement, in its most current form, as a condition to the transfer.
C. A fee shall be submitted with the application(s) for the City’s consent to transfer or change of control.
1. Where the City’s consent to a transfer or a change of control of this franchise does not result in the modification of this franchise the fee for each application shall be as set forth in the City’s fee schedule, or if not set forth in said schedule said fee shall be established by the City Council in its sole discretion.
2. Where the City’s consent to a transfer or a change of control of this franchise results in the modification of this franchise this fee shall be as set forth in the City’s fee schedule, or if not set forth in said schedule said fee shall be established by the City Council, in its sole discretion.
3. In the event the costs to process the applications exceed the fees detailed above, the applicants may be required to pay any additional costs incurred by the City in processing the applicants’ requests for the City’s consent to the transfer of change of control of this franchise. Such costs may include the cost incurred for hiring consultants to assist in evaluating the applications. Such costs shall be paid by the applicants prior to
EXHIBIT A
20 final consideration of the request by the City.
D. Within thirty (30) days of the effective date of the City’s approval of the transfer or change of control, or within thirty (30) days of the date of the close of the transfer or change of control, the Grantee shall file with the City (1) a certified copy of each duly executed instrument of such a transfer or change in control; and (2) the submittal of a final accounting and report of all fees due under this franchise. The proposed transferee shall be responsible for any underpayment, and shall be entitled to a credit for any overpayment.
Within ninety (90) days of the closing of the transfer or change of control, the Grantee shall submit financial statements, audited and certified by an independent certified public accountant, showing the condition of the franchise as of the closing. If such duly executed instruments are not filed with the City by the deadlines imposed in this Article, or if the final documents are different from the preliminary documents, the City may inform the proposed transferee that the transfer or change in control is not deemed to be in force and effect. The City may then administratively determine that this franchise is forfeited and the City Council may, without notice, repeal this franchise.
E. As a condition to the granting of consent to such a transfer or change in control, the City Council may impose such additional terms and conditions upon this franchise and upon the proposed transferee as are in the public interest. Such additional terms and conditions shall be imposed by ordinance. Nothing herein contained shall be construed to grant the Grantee the right to transfer or change control of this franchise or any part thereof, except in the manner aforesaid. This Article 17 applies to any transfer of this franchise, or of any change in control of this franchise, whether by operation of law, by voluntary act of Grantee, or otherwise.
ARTICLE 18
WAIVER OF BREACH
No waiver of the breach of any of the covenants, agreements, restrictions, or conditions of this franchise by the City shall be construed to be a waiver of any succeeding breach of the same or other covenant, agreements, restrictions or conditions of this franchise. No delay or omission of the City in exercising the right, power or remedy herein provided in the event of default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time other than is herein provided be construed as a waiver of or variation in any of the terms of this franchise.
ARTICLE 19
DEFAULT
A. In the event that the Grantee shall default in the performance of any of the terms, covenants and conditions herein, the City shall give written notice to the Grantee of such default by certified mail. In the event that the Grantee does not commence the work necessary to cure such default within fifteen (15) business days after such notice is received or prosecute such work diligently to completion, the City may declare this franchise forfeited by giving written notice thereof to the Grantee by certified mail, whereupon this franchise shall be void and the rights of the Grantee hereunder shall terminate and the Grantee shall execute an instrument of surrender and deliver the same to the City. If the City Council
EXHIBIT A
21 declares this franchise forfeited, it may thereupon and thereafter exclude the Grantee from further occupancy or use of all City roads authorized under this franchise. A forfeiture of said franchise shall not of itself operate to release any bond filed for said franchise. Upon declaring a franchise forfeited, the City Council may elect to draw against the bond as liquidated damages or pursue any other legal remedy for any damage, loss or injury suffered by the City as a result of such breach or both. After forfeiture, any bond shall remain in full force and effect for a period of one (1) year unless exonerated by the City Council. No bond shall be exonerated unless a release is obtained from the City Engineer and is filed with the City Clerk. The release shall state whether all excavations have been back filled, all obstructions removed, and whether the substratum or surface of City streets occupied or used have been placed in good and serviceable condition.
Release shall not constitute a waiver of any right or remedy which the City may have against the Grantee or any person, firm or corporation for any damage, loss or injury suffered by the City as a result of any work or activity performed by the Grantee in the exercise of this franchise.
B. No provision herein made for the purpose of securing the enforcement of the terms and conditions of this franchise shall be deemed an exclusive remedy, or to afford the exclusive procedure, for the enforcement of said terms and conditions, but the remedies and procedure herein provided, in addition to those provided by law shall be deemed to be cumulative.
ARTICLE 20
SCOPE OF RESERVATION
Nothing herein contained shall ever be construed so as to exempt the Grantee from compliance with all applicable ordinances of the City now in effect or which may be hereafter adopted which are not inconsistent with the terms of this franchise. The enumeration herein of specific rights reserved shall not be construed as exclusive; or as limiting the general reservation herein made or as limiting such rights as the City may now or hereafter have in law.
ARTICLE 21
NOTICE
Any notice required to be given under the terms of this franchise, the manner of service of which is not specifically provided for, may be served as follows:
Upon the City, by serving the City Clerk, personally or by addressing a written notice to the Director of Administrative Services of the City of Arroyo Grande, and depositing such notice in the United States mail, postage prepaid.
Upon the Grantee, by addressing a written notice to Grantee addressed to Phillips 66 Pipeline LLC, 2331 CityWest Blvd., Houston, TX 77042, Attn: Real Estate Manager, Real Estate Services, or such other address as may from time to time be furnished in writing by one party to the other and depositing said notice in the United States mail, postage prepaid.
When service of any such notice is made by mail, the time of such notice shall begin with and run from the date of the deposit of same in the United States mail.
EXHIBIT A
22 ARTICLE 22
SUCCESSORS
The terms herein shall inure to the benefit of and shall bind, as the case may be, the permitted successors and assigns of the parties hereto, subject, however, to the provisions of Article 17.
ARTICLE 23
ACCEPTANCE OF FRANCHISE
A. This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained.
1. Grantee shall, within thirty (30) days after the passage of this approval of this Franchise Agreement, file with the City Clerk an express and unconditional written letter of acceptance of, and consent to, the terms and conditions of this Franchise Agreement, in its current version, and as subsequently amended.
B. Grantee’s letter of acceptance shall be signed by one (1) duly authorized representative of Grantee, whose signature shall be acknowledged by a notary and shall be accompanied by the performance bond and evidence of insurance required by this Franchise Agreement.
ARTICLE 24
FORCE MAJEURE
The time within which Grantee is obligated hereunder to construct, erect, maintain, operate, repair, renew, change the size of and remove pipelines or other improvements shall be extended for a period of time equal in duration to, and performance in the meantime shall be excused on account of, and for, and during the period of any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or regulation of any governmental agency law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.
ARTICLE 25
LIQUIDATED DAMAGES
A. By acceptance of this franchise, Grantee understands and acknowledges that failure to timely comply with any performance requirements stipulated in this Franchise Agreement will result in damages to the City, and that it is and will be impractical to determine the actual amount of such damage in the event of delay or nonperformance. Each of the amounts set forth below has been set in recognition of the difficulty of affixing actual
EXHIBIT A
23 damages arising from breach of these times of performance requirements. Each of said amounts constitute a reasonable estimate of these damages. This section does not limit the rights and remedies available to the City for damages other than the timely compliance with performance requirements as described in this section. The liquidated damages set forth below shall be chargeable to the bond, letter of credit or security fund provided for herein, supra, should Grantee not make payment within thirty (30) days of written notice by certified mail by the City that the following amounts are due for the following concerns:
1. Failure to provide data, documents, or reports within ten (10) business days after written request by the City, by certified mail, or such longer time as may be specified in said request: Two Hundred Fifty Dollars ($250.00) per day for each day, or part thereof that each violation continues.
2. Failure to provide to the City within ten (10) business days after written request by the City, by certified mail, current evidence of insurance and bonding: Two Hundred Fifty Dollars ($250.00) per day for each day, or part thereof, that each noncompliance continues. Nothing in this Section shall preclude immediate termination or suspension of this franchise as provided for herein.
3. After ten (10) business days written request by the City, by certified mail, to do so, the failure by Grantee to timely restore public or private property after performance of work: Two Hundred Fifty Dollars ($250.00) per day or part thereof, that each non-compliance continues.
4. Failure to timely comply with any performance requirements stipulated in this Franchise Agreement within ten (10) business days after written request or notice by the City, by certified mail: Two Hundred Fifty Dollars ($250.00) per day or part thereof, that each non-compliance continues.
B. If the City Engineer determines that Grantee is liable for liquidated damages, the City Engineer shall issue to Grantee by certified mail written notice of intention to charge liquidated damages. Liquidated damages shall begin to accrue as of the date of the written notice and as set forth in said notice. The notice shall set forth the basis for the liquidated damages and give Grantee a reasonable time in which to remedy the violation.
C. Grantee shall have the right to appeal any notice to the City by certified mail within fifteen (15) days after issuance of the notice by the City Engineer. The City shall make a determination within sixty (60) days after receipt of an appeal. The City Council’s decision shall be the final decision of the City.
D. If Grantee does not appeal to the notice within said fifteen (15) day period, Grantee shall pay the amount(s) of liquidated damages as stated in the notice. If payment is not made as provided for in this Article, the City may withdraw against the bond provided for in Article 14 herein.
EXHIBIT A
24 ARTICLE 26
ATTORNEY’S FEES
In the event the City or Grantee brings legal action against the other, or against Grantee’s bonding companies or insurance carriers to compel performance of, or to recover for breach of any covenant, agreement or condition contained in this franchise, or for damages, the prevailing party shall be entitled to, in addition to any other relief obtained, such reasonable attorney’s fees as are fixed by the judge of the court in which such action is brought.
ARTICLE 27
FAILURE TO COMPLY
If Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions hereof, or of the Act, as amended, in accordance with the provisions of which this Franchise is granted, and shall not within fifteen (15) business days, or within such other time period provided herein otherwise, after the written demand for compliance, begin the work of compliance, or after such beginning, shall not prosecute the same with due diligence to completion, then the City may declare this franchise forfeited. The City may sue in its own name for the forfeiture of this franchise in the event of non-compliance by Grantee, its successors or assigns, with any of the condition hereof.
ARTICLE 28
COMPLIANCE WITH APPLICABLE LAW
Until such time as (a) this franchise terminates, (b) the Grantee removes all of its facilities, and (c) the Grantee completes any necessary remedial work, the Grantee will comply with all applicable law.
ARTICLE 29
SEVERABILITY
This Franchise Agreement and the various parts, sections and clauses thereof are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid, the remainder of this Franchise Agreement shall not be affected thereby. If any part, sentence, paragraph, section or clause of this Franchise Agreement, or its application to any person or entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall affect only such part, sentence, paragraph, section or clause of this Franchise Agreement, or person or entity; and shall not affect or impair any of the remaining provisions, parts, sentences, paragraphs, sections or clauses of this Franchise Agreement, or its application to other persons or entities. The City Council hereby declares that this Franchise Agreement would have been adopted had such unconstitutional or invalid part, sentence, paragraph, section or clause of this Franchise Agreement not been included herein; or had such person or entity been expressly exempted from the application of this Franchise Agreement.
EXHIBIT A
25 ARTICLE 30
EFFECTIVE DATE
This Franchise Agreement shall take effect January 8th , 2025.
EXHIBIT A
26 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the dates below.
CITY OF ARROYO GRANDE,
a municipal corporation
___________________________
Matthew Downing,
City Manager
Dated: __________________________
PHILLIPS 66 Pipeline, LLC,
a Delaware Limited Liability Company
Name: __________________________
Title: __________________________
Dated: __________________________
EXHIBIT A
EXHIBIT A-1
FRANCHISE MAPS OF ACTIVE PIPELINES AND OTHER APPURTENANCES AND
FACILITIES
P66_6000_cpConoco.mxt
290+00300+00
PIPESPECIFICA
ETXIOHINBSIT A
COATING DETAIL
BEGIN END COATING
277+66 280+43 OTHER
280+43 280+63 EPOXY
280+63 313+03 OTHER
313+03 313+18 EPOXY
313+18 324+46 OTHER
PIPE DETAIL
BEGIN END OD x WT SPEC SMYS LS INSTAL MANUF
277+66 324+46 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN ANC
277+66 NC-40-10 - Santa Maria Refinery to Miossi 324+46 PLS
Dower
T32S R13E Sec 028
Beech
Quan Alder
Wood
000
000 032S
013E
032S
012E
Las Casitas
Halcyon PRICE CANYON TO SUMMIT STATION LINE 400 SUMMIT TO AVILA 8 INCH IDLE Focus Pipe Line
Legend
1000' Station Increment
De Los Desca
San Luis Obispo, CA
Rena
Alpine
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable /
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM / AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap
Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC. 350
300
250
200
8.625" x 0.277"
35000
350
300
250
200
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
150
100
150
100
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
50 277+66 280+00 290+00 300+00 310+00 320+00
50 324+46
01/26/23 NC40_400 07 of 17
37 Gaynfair
Mulberry
PROFILE PIPE DETAIL PLAN VIEW PIPELINE STATIONING
Temple
1050 Series : Sta 277+66 Match Sheet NC40_400_006
277+66
The
279+73 CL CALLE DE LOS SUEI 280+00
280+52 2.2' SLEEVE
De Los Suei
282+54 CL CLL DE LOS SUEI
Virginia 284+90 CL VIRGINIA DRIVE
Sycamore
288+00 CL WILLOW LANE
Cameron 289+61 AGR | AGM 10
Creekside
Sandalwood 293+15 CL 12 IN LINE 300
293+35 CL 8 IN LINE 300
Farroll 294+91 CL FARROLLAVENUE
Farroll
Olive
300+16 CL TODD LANE Todd
Fair Oaks
302+85 CL FAIR OAKS AVENUE304+50 SANTA MARIA/MIOSSI308+55 AGR | AGM 11309+32 CL SERVICE A3
s
1 h0+00
Dodson 313+00 CL DODSON WAY 313+13 2' SLEEVE
Newman
Maple Eman
320+00
320+62 CL PARK WAY
324+46 1050 Series : Sta 324+46 Match Sheet NC40_400_008 297+66 CL OLIVE STREET298+27 CL 8 IN BURIED WATER LINE
P66_6000_cpConoco.mxt
PIPESPECIFICAETXIOH
INBSITA
COATING DETAIL
BEGIN END COATING
324+46 339+77 OTHER
339+77 340+08 EPOXY
340+08 342+84 OTHER
342+84 343+28 EPOXY
343+28 370+03 OTHER
370+03 370+75 EPOXY
370+75 376+86 OTHER
PIPE DETAIL
BEGIN END ODx WT SPEC SMYS LS INSTAL MANUF
324+46 376+86 8.625x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN ANC
324+46 NC
-40-10- Santa Maria Refinery to Miossi 376+86
PLS T32S R13E Sec 028 T32S R13E Sec 029 T32S R13E Sec 020 000 000 032S
013E
032S
012E
Focus Pipe Line
Legend
1000' Station Increment
San Luis Obispo, CA
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable/
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM/ AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap
Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC. 350
300
250
200
8.625"x 0.277"
35000
350
300
250
200
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
150
100
150
100
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
50 324+46 330+00 340+00 350+00 360+00 370+00
50 376+86
01/26/23 NC40_400 08 of 17
37 PROFILE PIPE DETAIL PLAN VIEW PIPELINE STATIONING
1050 Series : Sta 324+46 Match Sheet NC40_400_007 324+58 CL SOUTH HALCYON ROAD 324+67 CL EAST GRAND AVENUE325+05 SANTA MARIA/MIOSSI325+05 SANTA MARIA/MIOSSI325+06 SANTA MARIA/MIOSSI325+06 SANTA MARIA/MIOSSI325+06 SANTA MARIA/MIOSSI325+06 SANTA MARIA/MIOSSI325+26 CL 12 IN LINE 300325+38 CL 8 IN LINE 300329+35 CL SERVICE330+62 CL SERVICE 324+46
330+00
339+77 31' SLEEVE 340+00
342+67 AGR | AGM 12 342+84 44' SLEEVE349+45 CL BRISCO ROAD 350+00
352+48 CL NORTH ELM STREET
360+00 360+16 TEST LEAD
360+69 AGR | AGM 13361+98 CL FAIR VIEW DRIVE366+42 CL SERVICE368+27 CL SERVICE 370+00 370+03 72.2' SLEEVE
371+19 CL COURTLAND STREET373+27 CL SERVICE375+02 CL SERVICE 376+86 1050 Series : Sta 376+86 Match Sheet NC40_400_009
P66_6000_cpConoco.mxt
37 PIPESPECIFICAETXIOH
INBSITA
CASING DETAIL
BEGIN END NOM DIA CROSSING
411+64 414+25 12 ROAD
BEGIN END COATING
376+86 414+28 OTHER
414+28 417+65 LAYERED_FBE
417+65 417+66 EPOXY
417+66 422+72 LAYERED_FBE
422+72 430+06 OTHER
COATING DETAIL
PIPE DETAIL
BEGIN END ODx WT SPEC SMYS LS INSTAL MANUF
376+86 411+57 8.625x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN 411+57 414+28 8.625x 0.322 API-5L 42000 ERW 1/1/2000 UNKNOWN 414+28 422+72 8.625x 0.322 API-5L 42000 ERW 6/1/2015 UNKNOWN 422+72 430+06 8.625x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN ANC
376+86 NC
-40-10- Santa Maria Refinery to Miossi 430+06
PLS T32S R13E Sec 020
032S
013E
000
032S
012E
000
Focus Pipe Line
Legend
1000' Station Increment
San Luis Obispo, CA
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable/
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM/ AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap
Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC. 300
250
200
150
8.625"x 0.277"
35000
8.625"x 0.322"
42000
8.625"x 0.277"
35000
300
250
200
150
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
100
50 100
50 0
SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
00 01/26/23 NC40_400 09 of 17
376+86 390+00 400+00 410+00 420+00 430+06
PROFILE PIPE DETAIL PLAN VIEW PIPELINE STATIONING
1050 Series : Sta 376+86 Match Sheet NC40_400_008 378+55 CL OAK PARK BOULEVARD 379+25 CL 14.5' X 15' CONC VLV VAULT 376+86 379+22 CL 8" X 8" TEE 379+23 CL FLANGE
379+25 8" GATE SL55
MANUAL VALVE
380+00
380+55 CL SERVICE381+08 CL SERVICE 379+26
379+26379+32
CL FLANGECL 8" X 8" TEETEST LEAD 382+08 CL RAMONA AVENUE 386+87 CL 4 IN GENERIC POWER LINE386+91 CL BRIGHTON AVENUE 390+00
390+88 CL 2 IN GENERIC TELEVISION
CABLE
392+28 CL NEWPORT AVENUE392+79 CL 2 IN GENERIC TELEVISION CABLE
392+80 CL 6 IN GENERIC POWER LINE395+25 AGR | AGM 14395+86 CL SARATOGAAVENUE396+95 CL 3 IN GENERIC POWER LINE399+28 CL 6 IN GAS PIPELINE399+47 CLATLANTIC CITY AVENUE 400+00 404+36404+38
TEST LEADTEST LEAD 404+39 PL MARKER | TYPE:CARSONITE
405+39 SANTA MARIA/MIOSSI407+10 PL MARKER | TYPE:STEEL POST408+55 PL MARKER | TYPE:409+40 PL MARKER | TYPE:
410+00
410+83 PL MARKER | TYPE:
411+36 STREAM411+65 FENCE411+70 PL MARKER | TYPE:STEEL POST 411+64 BEGIN 12" CASING 411+57 414+25 END CASING
414+30 TEST LEAD
417+58 8" VALVE
417+65 SPLIT TEE
415+68 PL MARKER | TYPE:STEEL POST417+04 FENCE417+71 FENCE418+61 PL MARKER | TYPE:STEEL POST 420+00
422+72 STQ BK=42271.54 AH=42278.00422+72 CSS CHANGE STATION SERIES 422+72424+46 CL OAK PARK BOULEVARD Grieb
2900SJe ar i me s e: Ssta430+06 430+00 430+06 Match Sheet NC40_400_010
P66_6000_cpConoco.mxt
2900 Series : Sta 484+96
PIPESPECIFICAETXIOH
INBSITA
COATING DETAIL
BEGIN END COATING
430+06 463+50 OTHER
463+50 463+53 GEOTEX
463+53 484+96 OTHER
PIPE DETAIL
BEGIN END ODx WT SPEC SMYS LS INSTAL MANUF
430+06 484+96 8.625x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN ANC
430+06 NC
-40-10- Santa Maria Refinery to Miossi 484+96
PLS T32S R13E Sec 020
032S
013E 032S
012E
000 000
000 Focus Pipe Line
Legend
1000' Station Increment
000
000
031S
014E
031S
012E
030S
013E
000
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Station Equation
Test Lead
AGM/ AGR
Bypass Valve
Block Valve (MOV, Manual)
San Luis Obispo, CA
031S
013E
032S
013E
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable/
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap
Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC. 400
350
300
250
8.625"x 0.277"
35000
400
350
300
250
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
200
150
200
150
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
100
430+06 440+00 450+00 460+00 470+00 480+00
100
484+96
01/26/23 NC40_400 10 of 17
37 PROFILE PIPE DETAIL PLAN VIEW PIPELINE STATIONING
2900 Series : Sta 430+06 Match Sheet NC40_400_009
430+06
430+91 SANTA MARIA/MIOSSI432+27 CL JAMES WAY433+27 SANTA MARIA/MIOSSI433+28 SANTA MARIA/MIOSSI438+36 SANTA MARIA/MIOSSI439+37 CL OAK PARK BOULEVARD439+38 CL SERVICE 440+00441+30 CL OAK PARK BOULEVARD443+97 CL OAK PARK BOULEVARD 448+04 1' SLEEVE
449+52 STREAM450+60 CL MEADOWLARK DRIVE
450+00
451+94 CL OAK PARK BOULEVARD
457+88 TEST LEAD
460+00
462+85 PL MARKER | TYPE:STEEL POST463+33 FENCE463+40 PL MARKER | TYPE:STEEL POST 463+40 463+70 TEST LEAD 4' SLEEVE464+72 PL MARKER | TYPE:STEEL POST466+42 FENCE468+58 PL MARKER | TYPE:CARSONITE 470+00
470+69 PL MARKER | TYPE:PLASTIC (PVC)472+67 PL MARKER | TYPE:STEEL POST474+22 STREAM476+00 AM 10.00 477+11 TEST LEAD 477+30 FENCE
480+00 480+07 PL MARKER | TYPE:CARSONITE
482+13 PL MARKER | TYPE:CARSONITE
484+96 Match Sheet NC40_400_011
Dennis
ORDINANCE NO. 613
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE GRANTING TO
CONOCOPHILLIPS CALIFORNIA PIPELINE COMPANY A
FRANCHISE TO CONSTRUCT, OPERATE, AND
MAINTAIN PIPELINES FOR THE TRANSPORTATION OF
OIL, AND OTHER SPECIFIED MATERIALS, IN THE CITY
OF ARROYO GRANDE, STATE OF CALIFORNIA
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:
1. The City Council hereby approves and authorizes the Mayor to execute an Agreement Granting To ConocoPhillips California Pipeline Company, A California Corporation, A Franchise To Construct, Operate, And Maintain Pipelines For The Transportation Of Oil and Other Specified Materials, In The City Of Arroyo Grande, State Of California "Pipeline Franchise Agreement a true and correct copy of which is on file, and at all relevant times shall be kept on file, in the Office of the City Clerk. Said Pipeline Franchise Agreement expires on November 30, 2024, unless sooner terminated pursuant to the terms and conditions thereof.
On motion by Council Member Fellows, seconded by Council Member Arnold, and by the following roll call vote, to wit:
AYES: Council Members Fellows, Arnold, Guthrie, Costello, and Mayor Ferrara NOES: None
ABSENT: None
the foregoing Ordinance was adopted this 13 day of October 2009.
ATTACHMENT 2
ORDINANCE NO. (p 13
PAGE 2
TONY FER rr
MAYOR
ATTEST:
KELLY ETbRE, CITY CLERK
APPROVED AS TO CONTENT:
A A S, CITY MANAGER
APPROVED AS TO FORM:
TIn Y J. EL, CITY ATTORNEY
2 ATTACHMENT 2
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached is a true, full, and correct copy of Ordinance No. 613 which was introduced at a regular meeting of the City Council /Redevelopment Agency on September 22, 2009; was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13 day of October 2009; and was duly published in accordance with State law (G.C. 40806).
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14 day of October 2009.
KELLY W TM RE, CITY CLERK
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 3
ATTACHMENT 4
Phillips 66 Pipeline 0594A 0594B OSFM
Standard Ann Page 1 of 2
Post-Inspection Written Preliminary Findings
Generated on 2024.December.13 13:16
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
Date of Transmittal: 12/13/2024
Dates of Inspection: November 18-21, 2024
Operator: PHILLIPS 66 PIPELINE LLC
Operator ID: 31684 (primary)
Inspection Systems: 86455 and 86456
Assets (Unit IDs) with results in this report: OSFM Inspection Units 0594A and 0594B System Type: HL
Inspection Name: Phillips 66 Pipeline 0594A 0594B OSFM Standard Ann Lead Inspector: Mark McCaleb
Operator Representative: Val Flores
Unsatisfactory Results
No Preliminary Findings.
Concerns
No Preliminary Concerns.
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other ATTACHMENT 5
Phillips 66 Pipeline 0594A 0594B OSFM
Standard Ann Page 2 of 2
information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
ATTACHMENT 5
Phillips 66 IU 594A and 594B Standard
Main Page 1 of 1
Post-Inspection Written Preliminary Findings
Generated on 2022.September.27 11:52
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
Date of Transmittal: 09/27/2022
Dates of Inspection: 06/06/2022 to 06/10/2022
Operator: PHILLIPS 66 PIPELINE LLC
Operator ID: 31684 (primary)
Inspection Systems: N/A
Assets (Unit IDs) with results in this report: OSFM Inspection Units 0594A and 0594B System Type: HL
Inspection Name: Phillips 66 IU 594A and 594B Standard Main Inspection Lead Inspector: Ha Nguyen
Operator Representative: Allan Cuada
Unsatisfactory Results
No Preliminary Findings.
Concerns
No Preliminary Concerns.
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
ATTACHMENT 5
Phillips 66 Pipeline 0596A OSFM Standard
Annual Pi Page 1 of 2
Post-Inspection Written Preliminary Findings
Generated on 2024.September.25 11:08
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
Date of Transmittal: 09/25/2024
Dates of Inspection: August 26-30, 2024
Operator: PHILLIPS 66 PIPELINE LLC
Operator ID: 31684 (primary)
Inspection Systems: OSFM Inspection Unit 0596A
Assets (Unit IDs) with results in this report: 86457
System Type: HL
Inspection Name: Phillips 66 Pipeline 0596A OSFM Standard Annual Pipeline Lead Inspector: Mark McCaleb
Operator Representative: Allan Cuadra
Unsatisfactory Results
No Preliminary Findings.
Concerns
No Preliminary Concerns.
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other ATTACHMENT 5
Phillips 66 Pipeline 0596A OSFM Standard
Annual Pi Page 2 of 2
information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
ATTACHMENT 5
Phillips 66 Pipeline 596A Standard Main Page 1 of 1
Post-Inspection Written Preliminary Findings
Generated on 2023.March.26 14:00
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
Date of Transmittal: 03/26/2023
Dates of Inspection: 02/21/2023, 02/22/2023, 02/23/2023, and 02/24/2023 Operator: PHILLIPS 66 PIPELINE LLC
Operator ID: 31684 (primary)
Inspection Systems: N/A
Assets (Unit IDs) with results in this report: OSFM IU 0596A System Type: HL
Inspection Name: Phillips 66 Pipeline 596A Standard Main Inspection Lead Inspector: Sampson Tang
Operator Representative: Allan Cuadra, DOT Coordinator, Northwest Region Unsatisfactory Results
No Preliminary Findings.
Concerns
No Preliminary Concerns.
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.
ATTACHMENT 5
Item 9.h.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Award Engineering Design Services for 2025 Streets Project DATE: December 9, 2025
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a professional services contract for Engineering Design Services of the 2025 Streets Project (PW 2025-01) with Pavement Engineering, Inc. (PEI), 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 awarding the contract for Engineering Design Services of the 2025 Streets Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposal for engineering design services as submitted is $363,098. Staff recommends removing the Huasna Roundabout design (Task 4.4) from the project scope because this component of the overall project will cause delay in the development of the project plans. Removal of Task 4.4 changes the contract award to $319,928. This includes design for the streets that were identified as needing overlay treatment in Fiscal Year 2025-2026 in the Pavement Management Plan (PMP), curb ramps in need of upgrade per the Americans with Disabilities Act (ADA) Transition Plan, and drainage improvements.
The FY 2025-26 budget allocated $4,139,506 for the 2025 PMP for pavement treatment.
The funding is as follows:
SB1: $ 481,000
Measure E-24 Sales Tax: $3,577,640
CDBG: $ 80,866
Item 9.h.
City Council
Award Engineering Design Services for 2025 Streets Project December 9, 2025
BACKGROUND:
Completing the engineering design for the 2025 Streets Repair Project is consistent with the 13-year PMP reviewed and accepted by City Council at its meeting on April 22, 20251.
The indicated repairs will extend the service life of the treated street segments, reduce future costs, and provide a smoother, safer driving surface. New striping will be installed, which will provide safer driving facilities. Curb ramps will be upgraded as noted in the adopted ADA Transition Plan, adopted on October 14, 20252. City staff opened bids for a separate project Rebid Pavement Restriping PW 2025-11 for streets that are scheduled later in the 13-year plan for pavement treatment but are in need of restriping.
Predesign deflection testing of pavement was conducted on streets proposed for treatment in 2026 and 2027 in the PMP. It was determined through the predesign testing that several streets that were anticipated to require full-depth reclamation could be treated through overlay treatment instead (Newport Avenue, Newport Frontage, Hillcrest Drive, Chilton Avenue, Sierra Drive, Forest Glen Drive, Olive Street, Todd Lane, Woodland Court, Vernon Street, Wesley Street, Cross Street, Hawkins Street, and Trinity Avenue).
The overlay treatment provides cost savings over full-depth reclamation and results in a larger overlay project for the 2025 Street Repairs Project. The 2026 Street Repairs will have a smaller scope since there are fewer streets requiring more substantial treatment, such as full-depth reclamation.
The City issued a Request for Proposals directly to seven known engineering design consultants, six Bid Boards, and the City’s website on November 7, 2025. One proposal was received by the deadline. As noted in the Request for Proposals, the proposal received from PEI was evaluated by the Proposal Review Committee on Understanding of the Work, Work Plan, and Schedule, and determined to be responsive.
ANALYSIS OF ISSUES:
The proposal submitted by PEI adequately addresses the tasks required to complete the engineering design services for this 2025 Street Project, including administration, field measurements, plans, specifications, estimates, and specialty design items.
Specialty design items include:
Stagecoach Road / Huasna Road intersection sidewalk and ramp design Halcyon Road from Farroll Avenue to The Pike overlay treatment, curb and gutter, and retaining wall design
Del Sol Street / Tierra Street intersection patch
Robles Road drainage improvements and curb ramps
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=290d7d89-520f-4257-a4f2- d8f615e2f4d4&lang=English&Agenda=Agenda&Item=58&Tab=attachments 2https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=290d7d89-520f-4257-a4f2- d8f615e2f4d4&lang=English&Agenda=Agenda&Item=58&Tab=attachments
Item 9.h.
City Council
Award Engineering Design Services for 2025 Streets Project December 9, 2025
Staff recommends removing Task Phase 4.4,the design of the Huasna Roundabout at Huasna and Corbett Canyon Road, because it will significantly delay the completion of the Project Plans. Staff will pursue the survey and design of the Huasna Roundabout separately through On-Call Services or Informal Bidding in January 2026. Construction for the roundabout will be carefully scheduled due to the proximity to schools. The Proposal Selection Committee discussed the removal of this item with PEI, on November 25, 2025, and all were in favor of the scope revision. Table 1 provides a breakdown of the costs for PEI to provide engineering design services.
Table 1: PEI Engineering Design Services Cost Breakdown ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation as stated above;
2. Do not approve staff’s recommendation and request further information;
3. Provide other direction to staff.
ADVANTAGES:
Completing the engineering design for the 2025 Streets Repair Project is consistent with the PMP reviewed and accepted by City Council at its meeting on April 22, 20253. The indicated repairs will extend the service life of the treated street segments, reduce future costs, and provide a smoother, safer driving surface. New striping will be installed, which will provide safer driving facilities. Curb ramps will be upgraded as noted in the adopted ADA Transition Plan, adopted on October 14, 20254.
3https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=290d7d89-520f-4257-a4f2- d8f615e2f4d4&lang=English&Agenda=Agenda&Item=58&Tab=attachments 4https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=290d7d89-520f-4257-a4f2- d8f615e2f4d4&lang=English&Agenda=Agenda&Item=58&Tab=attachments Item PEI
Task 1 - Project Management / Administration $ 21,600.00 Task 2 - Field Measurements & Concept Level Budget $ 83,420.00 Task 3 - Plans, Specs & Estimates $ 152,925.00
Task 4 - Specialty Designs $ 105,153.00
Subtotal: $ 363,098.00
Remove from Scope:
Task 4, Phase 4.4 Roundabout at Huasna Road and
Corbett Canyon Road $ (43,170.00)
Award Total: $ 319,928.00
Item 9.h.
City Council
Award Engineering Design Services for 2025 Streets Project December 9, 2025
DISADVANTAGES:
There are no disadvantages or impacts to the public during the engineering design phase of the 2025 Streets Repair project.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from the CEQA pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
2. Proposed Contract
65501.00015\42788974.6
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 CONTRACT FOR
ENGINEERING DESIGN SERVICES OF THE 2025 STREETS
PROJECT (PW 2025-01) WITH PAVEMENT ENGINEERING,
INC.
WHEREAS, predesign deflection testing of pavement was conducted on streets proposed for treatment in 2026 and 2027 in the Pavement Management Plan (PMP); and
WHEREAS, curb ramps were identified in the Americans with Disabilities Act (ADA) Transition Plan to be upgraded or installed; and
WHEREAS, the City issued a Request for Proposals for Engineering Design Services for the 2025 Street Repairs Project to engineering design firms, Bid Boards and the City website; and
WHEREAS, one proposal was received by the proposal deadline of November 25, 2025, at 1:00 pm; and
WHEREAS, the proposal from Pavement Engineering, Inc. (PEI) was evaluated by the Proposal Review Committee on the criteria of Understanding of the Work, Work Plan and Schedule, and was determined to be responsive; and WHEREAS, staff recommends removing the specialty design item Task Phase 4.4 for the design of the Huasna Roundabout from the scope since it will significantly delay the completion of the project plans. Staff will pursue the design of the Huasna roundabout through On-Call Services or Informal Bidding; and WHEREAS, Staff recommends awarding the professional services contract to PEI with the revised scope (removal of Task Phase 4.4 Huasna Roundabout Design); and WHEREAS, the FY 2025-26 budget includes $4,139,506 for the Engineering Design Services of the 2025 Streets Project (PW 2025-01), which is sufficient for the PEI contract of $319,928.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, as follows:
1. RECITALS. The foregoing recitals are true and correct and are incorporated herein.
RESOLUTION NO.
PAGE 2
2. BID AWARD. The City Council authorizes the City Manager or designee to execute a professional services contract for Engineering Design Services of the 2025 Streets Project (PW 2025-01) with PEI. for $319,928 subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney. The City Council incorporates the analysis of the Staff Report dated December 9, 2025, accompanying this item, as part of the passage of this Resolution.
3. CEQA FINDINGS. The City Council finds that the proposed action is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities.
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 9
th day of December 2025.
RESOLUTION NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
ISAAC ROSEN, CITY ATTORNEY
ATTACHMENT 2
BB&K (2023) -1- PROFESSIONAL SERVICES AGREEMENT
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 PAVEMENT ENGINEERING, INC., a California Corporation, with its principal place of business at 3485 Sacramento Drive, Suite A, San Luis Obispo, CA 93401 ("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 engineering design 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 Engineering Design Services for 2025 Street Repairs Project (PW 2025-01) project ("Project") as set forth in this Agreement.
2.3 Authority
The City Council approved this Agreement and authorized the City Manager to execute this contract in its December 9, 2025 meeting.
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 engineering design consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference, except that Task 4, Phase 4.4 Roundabout at Huasna Road and Corbett Canyon Road is excluded from the Services. 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 December 9, 2025, to December 8, 2026, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and
ATTACHMENT 2
BB&K (2023) -2- PROFESSIONAL SERVICES AGREEMENT
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 "A" attached hereto and incorporated herein by reference. The total compensation shall not exceed THREE-HUNDRED NINETEEN THOUSAND NINE HUNDRED TWENTY-EIGHT ($319,928.00) 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 "A" 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, unemployment insurance, disability insurance, and workers' compensation insurance.
ATTACHMENT 2
BB&K (2023) -3- PROFESSIONAL SERVICES AGREEMENT
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 "A" 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 Joe Ririe, Steven Holm, Bill Long, Sam Ho, Eric Nejedlo, and Roberto Mendoza, as more particularly described in the Organizational Chart depicted in Exhibit “A”.
3.3.5 City's Representative. The City hereby designates Matthew Downing, City Manager, 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 Joseph Ririe, President, 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.
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
ATTACHMENT 2
BB&K (2023) -4- PROFESSIONAL SERVICES AGREEMENT
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 Exhibit “A” 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.
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
ATTACHMENT 2
BB&K (2023) -5- PROFESSIONAL SERVICES AGREEMENT
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.
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.
ATTACHMENT 2
BB&K (2023) -6- PROFESSIONAL SERVICES AGREEMENT
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): 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.
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:
ATTACHMENT 2
BB&K (2023) -7- PROFESSIONAL SERVICES AGREEMENT
(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 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.
3.3.11.4 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 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.
ATTACHMENT 2
BB&K (2023) -8- PROFESSIONAL SERVICES AGREEMENT
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.
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.
ATTACHMENT 2
BB&K (2023) -9- PROFESSIONAL SERVICES AGREEMENT
(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.
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.
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BB&K (2023) -10- PROFESSIONAL SERVICES AGREEMENT
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 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.
3.5.1.1 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.
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.
3.5.1.3 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
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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.
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.
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
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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: Pavement Engineering, Inc.
3485 Sacramento Drive, Suite A
San Luis Obispo, Ca 93401
ATTN: Joseph Ririe, President
[email protected]
Eric Wells, Corporate Secretary
[email protected]
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
ATTN: Matthew Downing, City 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.
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
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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.
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.
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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.
3.7.7 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
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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.
3.7.17 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]
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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: President
Printed Name: Joseph L. Ririe
By:
Its: Corporate Secretary
Printed Name: Eric Wells
Approved By:
Matthew Downing
City Manager
Approved as to Form:
_____________________________________
Best Best & Krieger LLP
Isaac Rosen, City Attorney
Attested By:
Jessica Matson, City Clerk
BB&K (2020) Exhibit “A” PROFESSIONAL SERVICES AGREEMENT EXHIBIT “A”
Proposal from Pavement Engineering, Inc. for 2025 Street Repairs Project PW 2025-01, dated 11/25/25
November 25, 2025 MP25-806
Theresa Wren
CIP Manager
City of Arroyo Grande
1375 Ash Street
Arroyo Grande, CA 93420
Subject: City of Arroyo Grande – Proposal for 2025 Street Repairs Project PW 2025-01 Dear Theresa,
Pavement Engineering Inc. (PEI) appreciates the opportunity to respond to the City’s proposal to provide design services for structural pavement repairs on various streets in the City of Arroyo Grande. As the premier pavement engineering company in California, we welcome the opportunity to exceed your goals by providing the highest quality of work. PEI will be utilizing the subconsultant North Coast Engineering (NCE) for the roundabout design and some of the other specialty design – and have collaborated with them on multiple similar projects.
Established in 1987, PEI is a Civil Engineering consultant firm specializing in everything pavement for 38+ years. Whether it is pavement management, evaluation, design, testing, inspection, QC/QA or construction management, it’s all we do. Based on our experience and expertise, highly trained staff, and hands-on knowledge, we are confident we can deliver superior pavement evaluation, analyzation and cost estimation services to the City of Arroyo Grande, on time and on budget.
Our highly skilled staff are all experts in pavement design services for pavement and roadway projects. We have highlighted our experience working with public agencies throughout the state, including in the nearby area and with the City of Arroyo Grande on the predesign for 2025 Street Repairs Project. We believe our experience and knowledgeable staff demonstrates the asset we would be to the City in successfully completing this project.
We value our relationship with the City of Arroyo Grande and will commit to provide our services with honesty, trust and professionalism. As our slogan says, “You can ride on our reputation.” All services for the design project for the City of Arroyo Grande will be managed out of our San Luis Obispo office, with any needed support coming from the rest of the company. PEI takes no exceptions to the City’s Professional Services Agreement. I, Joe Ririe, PE, am authorized to bind our firm, and acknowledge our proposal is valid for ninety (90) days.
Very truly yours,
Joseph L. Ririe, P.E.
President & Senior Principal Engineer
3485 Sacramento Drive, Suite A; San Luis Obispo, CA 93401 Pavement Engineering Inc.
[email protected] / 805.781.2265
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INTRODUCTION
The City of Arroyo Grande is responsible for managing and maintaining 67 centerline miles of roads. They have identified several streets that are at a critical point in their deterioration cycle and if treated with an overlay now will save future reconstruction costs. The streets have wisely been grouped geographically to help minimize construction mobilization costs.
The intent of this project will be to use existing deflection and coring data, gathered previously, to value engineer rehabilitation treatments that will restore these pavements into safe and serviceable condition. Our work includes refining treatment options and budgets, measuring field quantities, and preparing contract documents and estimates for the listed project streets as well as the needed curb ramps upgrades identified by the City. Our work will also include refreshing existing striping and pavement markings throughout the City as directed by the City.
The City has identified 34 street segments in the RFP dated November 7, 2025 that will be included in this project. In addition, the City has requested additional design services at several locations. These locations and the associated scope of work include: 1) An intersection bulb out and sidewalk gap infill at Huasna Road and Stagecoach Road, 2) Perform digouts and overlay Huasna Road from Farroll Avenue to The Pike including approximately 300 LF of curb, gutter, and sidewalk on the east side of The Pike, and 160 LF of retaining wall, 3) Perform digouts and overlay the intersection of Del Sol Street and Tierra Street, 4) Create construction plans from concept drawings of roundabout at Huasna Road and Corbett Canyon Road, 5) Design a crossgutter/swale on north edge of Robles Road from Chilton Street to El Camino Real, 6) Design new ADA curb ramps to replace non-compliant curb ramps as outlined in the RFP.
This is exactly the type of project PEI does day in and day out. We are familiar with Arroyo Grande pavement projects and specifically the project streets, having performed the preliminary design and pavement evaluation services. The City can count on PEI to apply our expertise and experience to get the most out of every paving dollar.
For this project, Pavement Engineering Inc (PEI) will be teaming with North Coast Engineering (NCE) to help expedite the project schedule.
Our approach for this project is outlined below.
SCOPE OF WORK
The scope of work is similar to work successfully provided to the City by PEI for previous street repair projects. The work is broken down into several tasks outlined below.
TASK 1 – PROJECT ADMINISTRATION
This work includes a kick-off meeting with City of Arroyo Grande staff to confirm the project’s scope of work, schedule, budget, and availability of project documents; review project goals; discuss format of deliverables; and clarify the responsibilities of each party for each project.
Progress meetings will be arranged to review the work at critical stages. For this project, we are Work Plan
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recommending that we meet after we complete the work associated with Task 2 to review and confirm the final treatments and conceptual level budget analysis, then again at the 60% stage, and finally at the 90% stage to review and confirm the final documents and collect comments.
We anticipate four (4) meetings, including the kick-off meeting, with City of Arroyo Grande staff.
TASK 2 – FIELD MEASUREMENTS & CONCEPT LEVEL BUDGET
All of the project streets have been deflection tested by PEI and rehabilitation options have been developed and previously discussed with the City. As part of the previous work, preliminary budgets were developed. The purpose of this task is to refine the preliminary budget by gathering all necessary information, either from field measurements or existing archives or reports to facilitate the design and development of the project’s contract documents. The end result of this task is to develop a concept level budget for the project that can be used to shape and organize the project to fit the City’s anticipated construction budget. We have separated the anticipated phases of this task below and provided a detailed explanation of the expected work for each phase.
Phase 2.1 – Measure Field Quantities
PEI will physically walk each of the project streets to measure and record all pertinent field quantities, including the location of existing striping, pavement markers and paint markings; location of underground utility covers; limits of paving transitions, digouts, and other pavement repairs; and the total area of pavement to be resurfaced. This information will be compiled into the bid schedule.
If we identify any concrete repairs or tree root damage during our field reviews, we will note it and bring it to your attention to determine if the repairs should be added to the contract.
Phase 2.2 – Concept Level Budget Analysis
After the work outlined in Phase 2.1 is complete, PEI will update the preliminary costs for each street and meet with the City to review the information. As part of the meeting, we will review the updated cost information and discuss and determine which treatments and any value engineering opportunities will be used for the project.
During the meeting, PEI will also discuss any drainage issues that are observed to determine if/ how to implement the needed improvements.
This meeting will be where critical decisions are made in regard to how far the budget can be stretched or project organized for bidding. At the conclusion of this meeting, PEI and the City will have a clear understanding about the specific design approach that will be implemented for the project. This meeting will be considered the 35% submittal.
In addition to the tasks listed above, PEI will coordinate with City staff to obtain the following information:
Facility maps from utility agencies.
Other available design data such as drainage facility maps, traffic data, City standards, front-end specifications, etc.
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Task 2 – Deliverables:
Updated and refined cost estimates for each roadway segment.
A design memo summarizing all of the selected treatments for the project by street segment.
TASK 3 – PLANS, SPECIFICATIONS AND ESTIMATES
Phase 3.1 – 60%, 90% and Final PS&E Submittals
PEI will develop project plans that will convey the design intent and treatments selected during the concept level budget meeting. We will use aerial images to develop base sheets and provide details for typical sections, transitions, conforms, digouts, and additional pavement work as necessary. PEI will submit any portion of the work that requires further clarification in the form of drafted plan views, details, elevations, or cross sections. We will also prepare technical specifications that will incorporate the latest asphalt industry guidelines and criteria. PEI will compile all field quantities collected from Task 2 into individual engineer’s estimates by street segment and will provide a summary spreadsheet for each project. This will be considered the 60% submittal.
After the City has reviewed the 60% submittal, PEI will meet to receive and review the comments.
We will use these comments from the City to refine the plans and technical specifications. This information will be submitted to the City as the 90% design review. The 90% design review documents will include the City-provided language and forms required for the grant funding.
After the City reviews the 90% submittal, we will meet with staff to resolve any final outstanding issues and will adjust the contract documents accordingly. A final 100% submittal will follow.
We understand that the City will provide the front-end conditions for this project. The striping and pavement marking patterns shown on the plans will match existing.
Phase 3.2 – Utility Research and Coordination
PEI will coordinate with local utility companies and incorporate any utility facilities impacted by the project into the contract documents. PEI will collect the location of all visible utility covers located within the project street limits. This information will be supplemented with information gathered from PEI’s outreach to utility companies. PEI will obtain a current listing of utility companies and contact information from the City for this task.
Task 3 – Deliverables:
The 60% and 90% plan submittals will be submitted in PDF format. Technical specifications will be submitted in Word format.
Final approved drawing submittals will include one PDF copy of all the drawing sheets, technical specifications in Word format and an engineer’s estimate in PDF format.