Agenda packet — Arroyo Grande City Council, June 9, 2026 (part 1 of 3)

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, June 9, 2026, 5:00 p.m.

In person at:

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

CLOSED SESSION: 5:00 P.M.:

1. CALL TO ORDER

2. ROLL CALL

3. FLAG SALUTE

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS

5. CLOSED SESSION
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

Meet with City-designated negotiators described below. Negotiation will include salary, compensation and benefits:

1. Employee Organization: Service Employees International Union (SEIU), Local 620 City-designated negotiators: Che Johnson, Special Labor Counsel; Ashley Garcia, Human Resources Officer; Nicole Valentine, Director of Administrative Services

2. Employee Organization: Unrepresented Management Employees City-designated negotiators: Che Johnson, Special Labor Counsel

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

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
City Attorney Rosen will announce any reportable action from the following meeting June 9, 2026
a) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

Meet with City-designated negotiators described below. Negotiation will include salary, compensation and benefits:

2. Employee Organization: Unrepresented Management Employees City-designated negotiators: Che Johnson, Special Labor Counsel

5.b Ordinances read in title only
Recommended Action:

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Recognizing the Third Friday in June 2026 as "Juneteenth Day" in Arroyo Grande

6.b Introduction of New Employee - Hailie Hix, Utilities Manager (DOWNING)

6.c Police Department Promotions and Oaths of Office - Sergeant Timothy Ramirez and Senior Police Officer Eli Esparza
(CULVER)

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

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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 May 26, 2026, as submitted.

9.b Cash Disbursement Ratification

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(VALENTINE)
Recommended Action:

Review and ratify the attached listing of cash disbursements for the period of May 1 through May 15, 2026.

9.c Statement of Investment Deposits for April 2026
(VALENTINE)
Recommended Action:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of April 30, 2026, as required by Government Code Section 53646(b).

9.d Communications Facility License Agreement with T-Mobile West, LLC (VALENTINE)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a Communications Facility License Agreement (“Agreement”) with T-Mobile West, LLC (“T-Mobile”) for use of approximately 375 square feet of City property located at 200 Hillcrest Drive for the continued operation and maintenance of a wireless communications facility; and 2) Find that adopting a Resolution authorizing the City Manager to execute a license agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it merely formalizes existing use and has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)

9.e Resolutions for the 2026 General Municipal Election for the Election of Certain Officers of the City
(MATSON)
Recommended Action:
1) Adopt a Resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 3, 2026, for the election of certain officers as required by the provisions of the laws of the State of California relating to General Law cities; 2) Adopt a Resolution requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 3, 2026, with the Statewide General Election to be held on the same date pursuant to Section 10403 of the Elections Code; and
3) Adopt a Resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 3, 2026.

9.f Agreement for Consultant Services with Townsend Public Affairs, Inc. for Legislative Advocacy and Grant Writing Services
(DOWNING)
Recommended Action:
1) Adopt a Resolution authorizing the City Manager to execute a three-year Professional

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Services Agreement with Townsend Public Affairs, Inc. (TPA) for Legislative Advocacy and Grant Writing Services, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Determine that approving the Agreement 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.g Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services (CULVER)
Recommended Action:
1) Approve a Memorandum of Understanding between the City of Arroyo Grande and the Lucia Mar Unified School District (LMUSD) to share the cost of salary and benefits for one School Resource Officer (SRO) position in Fiscal Year (FY) 2026-27; and 2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

9.h Award of Roof Repairs and City Hall Exterior Rehabilitation (SWEENEY)
Recommended Action:
1) Adopt a resolution authorizing the City Manager to execute a construction contract for the Rebid Roof Repairs on City Structures Project to KRGS Roofing, Inc. (KRGS) and a construction contract for the City Hall Balcony and Exterior Rehabilitation Project to BC Construction and Electric (BC), 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.i Notice of Acceptance, Water Main and Services Project, PW 2025-04 (SWEENEY)
Recommended Action:
1) Adopt the Resolution accepting the Water Main and Services Project (PW 2025-04) and associated actions; and
2) Determine that adopting the Resolution ordering the acceptance is exempt from the California Environmental Quality Act ("CEQA") because the activity is not a “project” subject to CEQA and 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.)

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10. PUBLIC HEARINGS
None.

11. BUSINESS ITEMS

11.a Critical Need Justification for Appointment of CalPERS Retired Annuitant (GARCIA)
Recommended Action:

Adopt a Resolution approving the temporary appointment of Shane Taylor as a CalPERS retired annuitant prior to the expiration of the 180-day waiting period pursuant to Government Code section 7522.56(f) and 21224.

11.b FY 2026-27 Mid-Cycle Budget
(VALENTINE)
Recommended Action:
1) Adopt a Resolution adopting the Fiscal Year 2026-27 Mid-Cycle Budget and making appropriations for the amount budgeted; and
2) Determine that adoption of the Budget is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) Individual projects within the Budget may be subject to CEQA and environmental review will be conducted at the appropriate time during implementation of those projects.

11.c Consider Placing a Local Cannabis Tax Measure on the November 3, 2026 General Municipal Election Ballot
(DOWNING)
Recommended Action:
1) Adopt a Resolution calling for the placement of a General Tax Measure on the November 3, 2026, General Municipal Election Ballot for the submission to the qualified voters of a proposed ordinance adding Chapter 3.26 to Title 3 (Revenue and Finance) of the Arroyo Grande Municipal Code establishing a tax on cannabis businesses operating within the City of Arroyo Grande;
2) Adopt an Ordinance adding Chapter 3.26 (Cannabis Business Tax) to Title 3 (Revenue and Finance) of the Arroyo Grande Municipal Code establishing a tax on cannabis businesses operating within the City of Arroyo Grande (to ultimately be considered for approval by the voters);
3) Adopt a Resolution providing for the filing of direct and rebuttal arguments and setting rules for the filing of written arguments regarding a City Measure to be submitted at the November 3, 2026, General Municipal Election;
4) Adopt a Resolution requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 3, 2026, with the Statewide General Election to be held on that date pursuant to Section 10403 of the Elections Code;

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5) Pursuant to Elections Code Section 9282, authorize and designate two members of the City Council to prepare and submit an argument in favor of the measure to the City Clerk within the time prescribed by law for inclusion in the voter information materials for the General Election to be held on November 3, 2026; and
6) Determine that adopting the Resolutions and Ordinance regarding a cannabis business tax relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).

11.d Consider Placing a Measure for Participation in the California State Water Project on the November 3, 2026, General Municipal Election Ballot
(SWEENEY)
Recommended Action:
1) Adopt a Resolution:

Ordering the submission to the qualified electors of the City at the General Election to be held on Tuesday, November 3, 2026, as called by Resolution, a measure to repeal 1990 Measure “A” and 2016 Measure E-16 and replacing both by amending Section 2.08.070 of Chapter 2.08 of Title 2 of the Municipal Code to authorize the City of Arroyo Grande to participate in the California State Water Project;
a.

Setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis of the measure; and
b.

Requesting consolidation with the County of San Luis Obispo General Municipal Election to be held on Tuesday, November 3, 2026; c.
2) Adopt an Ordinance to repeal 1990 Measure “A” and 2016 Measure E-16 and replace both by amending Section 2.08.070 of Chapter 2.08 of Title 2 of the Arroyo Grande Municipal Code to authorize the City to participate in the California State Water Project (subject to approval by the voters;
3) Pursuant to Elections Code Section 9282, authorize and designate two members of the City Council to prepare and submit an argument in favor of the measure to the City Clerk within the time prescribed by law for inclusion in the voter information materials for the General Election to be held on November 3, 2026; and
4) Determine that adopting the Resolution and Ordinance regarding participation in the California State Water Project relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).

11.e Study Session on Efforts to Redevelop East Grand Avenue (PEREZ)
Recommended Action:

Receive public comment and provide direction to staff regarding next steps for the project.

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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.

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Item 6.a.

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Item 9.a.

ACTION MINUTES

REGULAR MEETING OF THE CITY COUNCIL
May 26, 2026, 5:00 p.m.

Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
Council Members Present: Mayor Pro Tem Jamie Maraviglia, Council Member Jim Guthrie, Council Member Kate
Secrest, Council Member Aileen Loe
Council Members Absent: Mayor Caren Ray Russom
Staff Present: City Clerk Jessica Matson, City Attorney Isaac Rosen, City Manager Matthew Downing, Fire
Chief Scott Hallett, Administrative Services
Director Nicole Valentine, Interim Community
Development Director Andrew Perez, Utilities
Manager Shane Taylor, Human Resources
Officer Ashley Garcia, Chief of Police David
Culver, City Engineer Shannon Sweeney
This meeting was conducted in a hybrid in-person/virtual format.

CLOSED SESSION: 5:00 P.M.:

1. CALL TO ORDER
Mayor Pro Tem Maraviglia called the meeting to order at 5:00 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. FLAG SALUTE
Mayor Pro Tem Maraviglia led the flag salute.

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Mayor Pro Tem Maraviglia invited public comment. No comments were received.

5. CLOSED SESSION
City Attorney Rosen announced that the City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 2
2 Item 9.a.

Meet with City-designated negotiators described below. Negotiation will include salary, compensation and benefits:

2. Employee Organization: Unrepresented Management Employees City-designated negotiators: Che Johnson, Special Labor Counsel City Council adjourned to Closed Session at 5:02 p.m.

6. ADJOURNMENT
City Council adjourned Closed Session at 6:11 p.m.

REGULAR MEETING 6:00 P.M.
_____________________________________________________________________

1. CALL TO ORDER
Mayor Pro Tem Maraviglia called the Regular City Council Meeting to order at 6:12 p.m.

2. ROLL CALL
City Clerk Matson took roll call.

3. MOMENT OF REFLECTION

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

5. AGENDA REVIEW

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

May 26, 2026
a) LABOR NEGOTIATION PURSUANT TO GOVERNMENT CODE SECTION 54957.6:

Meet with City-designated negotiators described below. Negotiation will include salary, compensation and benefits:

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 3
3 Item 9.a.

2. Employee Organization: Unrepresented Management Employees City-designated negotiators: Che Johnson, Special Labor Counsel

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

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

6. SPECIAL PRESENTATIONS

6.a Honorary Proclamation Declaring May 2026 as "National Foster Care Month" Council Member Secrest presented the Proclamation declaring May 2026 as "National Foster Care Month". Felipe Gonzalez, San Luis Obispo County Foster Care, accepted the Proclamation.

No action was taken on this item.

6.b Honorary Proclamation Recognizing Shane Taylor Upon His Retirement from City Service Mayor Pro Tem Maraviglia read the Honorary Proclamation Recognizing Shane Taylor Upon His Retirement from City Service. Shane Taylor accepted the proclamation.

Mayor Pro Tem Maraviglia invited public comment. Speaking from the public was Geoff English.

No further public comments were received.

No action was taken on this item.

6.c City Manager Communications
City Manager Downing provided updates regarding FCFA’s prescribed burn taking place on The Pike on Sunday, May 31st; PD partnering with the San Luis Obispo County Department of Behavioral Health for placement of a clinician with an officer one day a week in order to respond to individuals in a mental crisis and those experiencing homelessness in our community; and expressed gratitude for the City’s retiring Utilities Manager, Shane Taylor.

No action was taken on this item.

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 4
4 Item 9.a.

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.b MAYOR PRO TEM MARAVIGLIA:

1. Five Cities Fire Authority JPA Board

2. Visit SLO CAL Advisory Board

3. Mayor's Meeting

7.c COUNCIL MEMBER GUTHRIE:

1. Integrated Waste Management Authority Board (IWMA)

2. REACH Economic Development Roundtable

3. Other

7.d COUNCIL MEMBER SECREST:

1. Air Pollution Control District (APCD)

2. Homeless Services Oversight Council (HSOC)

3. South County Chambers of Commerce Governmental Affairs Committee

4. Other

7.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 Pro Tem Maraviglia invited public comment. Speaking from the public was Patty Welsh. No further public comments were received.

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

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

Moved by Council Member Guthrie
Seconded by Council Member Secrest

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 5
5 Item 9.a.

Approve Consent Agenda Items 9.a. through 9.j., with the recommended courses of action.

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

9.a Approval of Minutes
Approved the minutes of the Regular City Council Meeting of May 12, 2026, as submitted.

9.b Cash Disbursement Ratification
Reviewed and ratified the listing of cash disbursements for the period of April 16 through April 30, 2026.

9.c Acceptance of the Annual Comprehensive Financial Report 1) Received and filed the Annual Comprehensive Financial Report (ACFR); and 2) Determined that receiving and filing the ACFR is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

9.d Fiscal Year 2025-26 Third Quarter Financial Status Report 1) Received and filed the Fiscal Year 2025-26 Third Quarter Financial Status Report; 2) Approved one Budget Adjustment Request; and
3) Received an update from the Citizens’ Sales Tax Oversight Committee Meeting.

9.e Award Contract for Tourism Marketing Services for Fiscal Year 2026-29 1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE-YEAR

PROFESSIONAL SERVICES AGREEMENT WITH COMMUNE COMMUNICATION FOR

MARKETING SERVICES FOR THE ARROYO GRANDE TOURISM AND BUSINESS IMPROVEMENT DISTRICT"; and
2) Found that approval of the Marketing Services Professional Services Agreement is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)

9.f Engineer's Reports for Assessment Districts

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 6
6 Item 9.a.
1) Adopted Resolutions entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED TO THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR FISCAL YEAR 2026-2027"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL

ASSESSMENTS RELATED TO THE GRACE LANE ASSESSMENT DISTRICT FOR FISCAL YEAR 2026-27"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS

RELATED TO THE ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL YEAR 2026-2027"; and 2) Approved the Engineer's Reports for FY 2026-27 for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 Tract 1769;
3) Set a public hearing for June 23, 2026, at 6:00 p.m. for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769, to consider levying the property assessments; and 4) Found the proposed action is exempt from CEQA under State CEQA Guidelines § 15302 and State CEQA Guidelines § 15378(b)(5).

9.g Adopt Ordinance Amending the Municipal Code Regarding Cross-Connections 1) Adopted an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 13.16 OF TITLE 13 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING CROSS-CONNECTIONS"; and 2) Found that adopting the Ordinance is not subject to the California Environmental Quality Act (“CEQA”) because these efforts have no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §15060 (c)(2) and (3), 15378). Alternatively, the organizational or administrative activities of a government will not result in direct physical changes in the environment. (State CEQA Guidelines §15378(b)(5).)

9.h Purchase of Replacement Service Truck
Authorized the City Manager to sign the purchase agreement with Downtown Ford of Sacramento for the purchase of a 2.5-ton Service Truck; and to sign the purchase agreement with Master Tech Automotives in Arroyo Grande to upfit the Service Truck.

9.i Quarterly Water Supply and Demand Update
Received and filed the Quarterly Water Supply and Demand Update.

9.j Grant of License Agreement with San Luis Obispo County Flood Control and Water Conservation District

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 7
7 Item 9.a.
1) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT OF

LICENSE AGREEMENT WITH THE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND

WATER CONSERVATION DISTRICT FOR THE STREAM GAUGE IN ARROYO GRANDE CREEK"; and
2) Found that adopting a Resolution authorizing the City Manager to execute a license agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it merely formalizes existing use and 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.)

10. PUBLIC HEARINGS
None.

11. BUSINESS ITEMS

11.a Five Cities Fire Authority Community Risk Assessment / Standards of Cover Presentation Fire Chief Hallett presented the staff report and responded to questions from Council.

Administrative Services Director Valentine and City Manager Downing responded to questions from Council.

Mayor Pro Tem Maraviglia invited public comment. Speaking from the public was Patty Welsh.

No further public comments were received. Chief Hallett responded to questions from the public.

Council discussion ensued regarding the report, call volumes, and finding efficiencies, and community risk education.

The report was received and filed.

11.b Review Preliminary FY 2026-27 Mid-Cycle Budget Update Report Administrative Services Director Valentine presented the report and responded to questions from Council.

Mayor Pro Tem Maraviglia invited public comment. Speaking from the public was Mike Harris.

No further public comments were received.

The report was received and filed.

11.c General Plan Update Study Session
Interim Community Development Director Perez presented the report and responded to questions from Council.

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

Council discussion ensued regarding the progress of the Update and implementation procedures, upcoming Housing Element process, and various City needs.

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CITY COUNCIL REGULAR MEETING MINUTES
MAY 26, 2026
PAGE 8
8 Item 9.a.

No action was taken on this Item.

12. COUNCIL COMMUNICATIONS
Council Member Secrest commented on Shane Taylor’s experience in utilities.

Council Member Loe commented on the adoption of the South County Transit Authority Budget for the next year.

13. ADJOURNMENT
There being no further business to come before the City Council, Mayor Pro Tem Maraviglia adjourned the meeting at 8:16 p.m.
_________________________
Jamie Maraviglia, Mayor Pro Tem
ATTEST:
_________________________
Jessica Matson, City Clerk

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Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Cash Disbursement Ratification
DATE: June 9, 2026
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of May 1 through May 15, 2026.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $1,475,260.70 fiscal impact for the period of May 1 through May 15, 2026, that includes the following items:
 Accounts Payable Checks $401,126.43
 Payroll & Benefit Checks $1,074,134.27
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 for 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.

Page 18 of 430 ends

Item 9.b.

City Council
Cash Disbursement Ratification
June 9, 2026

Page 2 ends

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

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

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

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

ATTACHMENTS:

1. May 1 through May 15, 2026 – Accounts Payable Check Register

2. May 1 & May 15, 2026 – Payroll & Benefit Check Registers

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Attachment 1

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Attachment 1

Page 21 of 430 ends

Attachment 1

Page 22 of 430 ends

Attachment 1

Page 23 of 430 ends

Attachment 1

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Attachment 1

Page 25 of 430 ends

General Fund 459,763.93 5101 Salaries Full time 302,384.07 Streets Fund 18,250.26 5101 Volunteer Employee Retirement - Sewer Fund 12,553.67 5102 Salaries Part-Time - PPT 6,215.20 Water Fund 26,448.97 5103 Salaries Part-Time - TPT 9,155.30 517,016.83 5105 Salaries OverTime 18,710.02
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,226.22
5108 Holiday Pay 9,266.16
5109 Sick Pay 3,817.13
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 17,649.25 5113 Vacation Pay 7,765.77
Public Works - Maintenance 464.30 5114 Comp Pay 1,950.36 Public Works - Enterprise 596.47 5115 Annual Leave Pay 11,775.37 Recreation - Administration - 5116 Salaries - Police FTO 862.92 Recreation - Special Events - 5121 PERS Retirement 42,582.61 18,710.02 5122 Social Security 27,728.89
5123 PARS Retirement 225.42
5126 State Disability Ins. 4,771.18
5127 Deferred Compensation 1,937.48
5131 Health Insurance 58,546.73
5132 Dental Insurance 3,030.72
5133 Vision Insurance 748.24
5134 Life Insurance 387.39
5135 Long Term Disability 463.50
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 900.00
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 26.59
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 1,230.00
517,016.83
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
04/10/2026-04/23/2026
5/1/2026

BY FUND BY ACCOUNT
Attachment 2

Page 26 of 430 ends

General Fund 492,463.46 5101 Salaries Full time 302,941.52 Streets Fund 19,373.32 5101 Volunteer Employee Retirement - Sewer Fund 17,227.99 5102 Salaries Part-Time - PPT 2,992.38 Water Fund 28,052.67 5103 Salaries Part-Time - TPT 9,180.28 557,117.44 5105 Salaries OverTime 20,059.43
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,194.72
5108 Holiday Pay 77.68
5109 Sick Pay 8,284.50
Administrative Services - 5110 Annual Leave Buyback -
Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback -
Police 17,755.94 5113 Vacation Pay 9,771.88
Public Works - Maintenance 1,356.51 5114 Comp Pay 2,042.81 Public Works - Enterprise 946.98 5115 Annual Leave Pay 11,178.88 Recreation - Administration - 5116 Salaries - Police FTO 482.88 Recreation - Special Events - 5121 PERS Retirement 41,682.27 20,059.43 5122 Social Security 30,963.73
5123 PARS Retirement 176.94
5126 State Disability Ins. 5,279.46
5127 Deferred Compensation 1,999.98
5131 Health Insurance 59,770.61
5132 Dental Insurance 3,148.80
5133 Vision Insurance 763.14
5134 Life Insurance 385.23
5135 Long Term Disability 547.78
5137 Leave Payouts 40,646.80
5142 Unemployment Insurance -
5143 Uniform Allowance 134.56
5144 Car Allowance 918.00
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 53.18
5150 Bi-Lingual Pay 175.00
5151 Cell Phone Allowance 1,265.00
557,117.44
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
04/24/2026-05/7/2026
5/15/2026

BY FUND BY ACCOUNT
Attachment 2

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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 April 2026 DATE: June 9, 2026
RECOMMENDATION:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of April 30, 2026, 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 April 30, 2026, and includes all investments managed by the City. As of April 30, 2026, the investment portfolio complied with all State laws and the City’s investment policy.

Page 28 of 430 ends

Item 9.c.

City Council
Statement of Investment Deposits for April 2026
June 9, 2026

Page 2 ends

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: April 30, 2026

Page 29 of 430 ends

CITY OF ARROYO GRANDE
Portfolio Summary
April 30, 2026
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Local Agency Investment Fund $ 10,779,931.23 $ 10,779,931.23 3.811% 40.376% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 3.680% February 21, 2026 12 mos February 21, 2027 0.932% Live Oak Banking Company Inc 249,000.00 249,000.00 3.150% May 26, 2022 48 mos May 26, 2026 0.932% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.932% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.928% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 0.928% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.910% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 0.928% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.928% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.932% Paragon Bank TN 245,000.00 245,000.00 4.050% March 19, 2025 24 mos March 19, 2027 0.917% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.921% United Teletech Financial Credit Union 248,000.00 248,000.00 5.100% November 8, 2023 48 mos November 8, 2027 0.928% Medallion Bank UT 249,000.00 249,000.00 4.000% March 14, 2025 36 mos March 14, 2028 0.932% Amerant Bank NA 245,000.00 245,000.00 4.050% March 28, 2025 36 mos March 28, 2028 0.917% Freedom Northwest Credit Union 249,000.00 249,000.00 4.000% March 28, 2025 36 mos March 28, 2028 0.932% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.913% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.932% SkyOneFederal Credit Union 249,000.00 249,000.00 3.900% October 25, 2024 48 mos October 25, 2028 0.932% Merrick Bank UT 249,000.00 249,000.00 4.000% March 19, 2025 48 mos March 19, 2029 0.932% Bank Hapoalim BM New York 244,000.00 244,000.00 4.500% May 21, 2024 60 mos May 21, 2029 0.913% 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 0.917% Texas Exchange Bank Crowley 249,000.00 249,000.00 4.000% May 23, 2025 48 mos May 23, 2029 0.932% Security First Bk Lincoln Neb 245,000.00 245,000.00 3.950% July 3, 2025 48 mos July 3, 2030 0.917% Synchrony Bank 245,000.00 245,000.00 3.600% October 24, 2025 60 mos October 24, 2030 0.917% Institution for Svgs Newbury 249,000.00 249,000.00 3.650% October 28, 2025 60 mos October 28, 2030 0.932% State Bank India New York 245,000.00 245,000.00 3.900% April 7, 2026 60 mos April 7, 2031 0.917% ATTACHMENT 1

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CITY OF ARROYO GRANDE
Portfolio Summary
April 30, 2026
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Celtic Bank Salt Lake City 249,000.00 249,000.00 3.900% April 17, 2026 60 mos April 17, 2031 0.932% Total Certificates of Deposit 7,164,000.00 7,164,000.00 26.789% Agency Bonds
Federal Home Loan Bank 994,396.00 987,670.00 2.400% March 17, 2021 72 mos March 29, 2027 3.722% Federal Home Loan Bank 500,000.00 497,070.00 3.375% May 17, 2022 60 mos May 17, 2027 1.872% Federal Agriculture Mortgage Corp 495,174.00 497,940.00 3.580% October 28, 2024 36 mos October 7, 2027 1.853% Federal Agriculture Mortgage Corp 2,029,036.00 2,041,280.00 4.650% May 17, 2024 60 mos April 26, 2029 7.595% Total Agency Bonds 4,018,606.00 4,023,960.00 15.042%
Municipal Bonds
California State Taxable GO Unlimited 1,256,116.00 1,328,087.40 3.500% November 1, 2023 53 mos April 1, 2028 4.702% California State Taxable GO Unlimited 501,880.50 496,820.50 1.750% April 1, 2026 57 mos April 1, 2028 1.879% California State Taxable GO Unlimited 525,935.25 546,416.75 2.500% December 19, 2024 57 mos October 1, 2029 1.969% Total Municipal Bonds 2,283,931.75 2,371,324.65 8.550%
Treasury Obligations
U.S. Treasury Z-2026 Series 984,728.00 997,380.00 1.100% December 6, 2021 53 mos May 31, 2026 3.686% U.S. Treasury Note 1,484,520.00 1,468,365.00 3.625% March 16, 2026 52 mos November 30, 2030 5.557% Total Treasury Obligations 2,469,248.00 2,465,745.00 9.243% TOTAL INVESTMENTS $ 26,715,716.98 $ 26,804,960.88 100.000% ATTACHMENT 1

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Item 9.d.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services Andrew Perez, Interim Director of Community Development SUBJECT: Communications Facility License Agreement with T-Mobile West, LLC DATE: June 9, 2026
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a Communications Facility License Agreement (“Agreement”) with T-Mobile West, LLC (“T-Mobile”) for use of approximately 375 square feet of City property located at 200 Hillcrest Drive for the continued operation and maintenance of a wireless communications facility; and 2) Find that adopting a Resolution authorizing the City Manager to execute a license agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it merely formalizes existing use and 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:

T-Mobile will pay the City $3,100 per month, which will increase annually by an amount equal to three percent (3%) over the amount of the monthly fee in effect immediately prior to the rate increase.

BACKGROUND:

The City owns property located at 200 Hillcrest Drive and maintains Reservoir No. 2 at that location. T-Mobile , including its predecessor companies, has occupied portions of this property since 2001 to operate a wireless communications facility. The wireless communications facility was entitled by Planning Commission Resolution 02-1851 and has operated continuously since that time in accordance with the associated conditions of approval. One of the conditions of approval required the carrier to enter into a lease agreement with the City, which was executed on May 23, 2001. This lease agreement expired on its own terms on March 15, 2024. T-Mobile has continued to occupy the lease area on a month-to-month basis since its expiration, but the City and T-Mobile desire to execute this new long-term Agreement.

Page 32 of 430 ends

Item 9.d.

City Council
Communications Facility License Agreement with T-Mobile West, LLC June 9, 2026

Page 2 ends

ANALYSIS OF ISSUES:

The Agreement will allow T-Mobile to continue to use and occupy a 375-square foot portion of the property for the operation and maintenance of its wireless communications facility. The initial term of this Agreement is five (5) years and will automatically extend for up to three (3) five (5) year terms, provided that T-Mobile is not in default under the Agreement at the time of the applicable extension. Notwithstanding this, the Agreement may be terminated by either party by sending a written notice of its intention not to extend the Agreement to the other party at least six (6) months prior to the end of either the initial term or any renewal term, as applicable. In addition, the City may terminate and revoke this Agreement prior to its expiration if T-Mobile fails to perform or observe any of its terms or conditions and fails to timely cure any such breach.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Modify and adopt the Resolution;

3. Do not adopt the Resolution; or

4. Provide other direction to staff.

ADVANTAGES:

The recommended action will result in annual General Fund revenue of $37,200 for the first year of the term and would escalate annually by 3% of the revenue collected in the preceding year.

DISADVANTAGES:

The Agreement authorizes the continued use of City owned property which may require coordination with the licensee for general maintenance of the property and City facilities located there.

ENVIRONMENTAL REVIEW:

Authorizing the City Manager to execute this Communications Facility License Agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it merely formalizes existing use and has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment pursuant to CEQA Guidelines Sections 15060, subd. (b)(2)-(3), and 15378.

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution
Exhibit A – Communications Facility License Agreement

Page 33 of 430 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A
COMMUNICATIONS FACILITY LICENSE AGREEMENT WITH TMOBILE WEST, LLC FOR USE OF APPROXIMATELY 375 SQUARE FEET OF CITY PROPERTY LOCATED AT 200 HILLCREST DRIVE FOR

THE CONTINUED OPERATION AND MAINTENANCE OF A WIRELESS

COMMUNICATIONS FACILITY
WHEREAS, the City of Arroyo Grande (“City”) owns APN 077-061-016, which is improved with Reservoir No. 2; and
WHEREAS, Planning Commission Resolution 02-1851 authorized T-Mobile and its predecessor companies (“Licensee”) to occupy a portion of the site for the operation and maintenance of a wireless communications facility; and
WHEREAS, on May 23, 2001, the Licensee entered into a lease agreement with the City to establish the terms and conditions for use of City property; and WHEREAS, on March 15, 2024, the lease agreement expired on its own terms and the Licensee has occupied the lease area on a month-to-month basis since expiration; and WHEREAS, the City and Licensee desire to execute a new Communications Facility License Agreement (“Agreement”) attached hereto as Exhibit “A” for the continued operation and maintenance of Licensee’s existing wireless communications facility.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby resolve as follows:

1. Recitals. The above recitals are true and correct and are incorporated herein by reference.

2. License Agreement. The City Manager is authorized to execute the Agreement attached hereto as Exhibit “A”, with T-Mobile West, LLC on behalf of the City.

3. CEQA. The City Council finds that authorizing the City Manager to execute this Communications Facility License Agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it merely formalizes existing use and has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment pursuant to CEQA Guidelines Sections 15060, subd. (b)(2)- (3), and 15378.

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RESOLUTION NO.

PAGE 2
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 June, 2026.

Page 35 of 430 ends

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

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65501.00104\44191568.6

Page 1 of 25 ends

Arroyo Grande Site Name: RESERVOIR 2
Licensee Site Name:

Licensee Site No.: JN45XGO98E

CITY OF ARROYO GRANDE

COMMUNICATIONS FACILITY LICENSE AGREEMENT
(T-Mobile West LLC – 200 Hillcrest Drive)
THIS COMMUNICATIONS FACILITY LICENSE AGREEMENT (“License”) is made and entered into as of the latter of the signature dates below, (“Effective Date”) by and between the City of Arroyo Grande, a municipal corporation with its principal offices located at 300 E Branch Street, Arroyo Grande, CA 93420 (“City”), and T-Mobile West LLC, a Delaware limited liability company ,with its principal offices located at 12920 SE 38th Street Bellevue, WA 98006, Attn: Lease Compliance/SV80566A (“Licensee”). City and Licensee are sometimes referred to in this License Agreement individually as a “party” or jointly as “parties.” The term “License” used in herein means this License Agreement and any amendments to this License Agreement as may be executed between the parties in accordance with the terms herein.

RECITALS
WHEREAS, the City is the owner of that certain parcel of real property located at the approximate address of 200 Hillcrest Drive, in the City of Arroyo Grande, California, commonly known as the City’s Reservoir 2 Site, and assigned San Luis Obispo County Assessor’s Parcel Number 077-061-016 (the “Property”).

WHEREAS, City and Cox PCS Assets, LLC, a Delaware limited liability company (“Original Lessee”), entered into that certain Communications Site Lease Agreement (Ground) (“Lease Agreement”) dated as of May 23, 2001 authorizing Original Lessee to use and occupy a 288 square foot portion of the Property for the operation and maintenance of the wireless communications facility; and
WHEREAS, Cox PCS Assets, LLC filed an Amended Certificate of Registration with the Secretary of State of the State of California, changing its registered name to Sprint PCS Assets, LLC; and
WHEREAS, City and Sprint PCS Assets, LLC entered into that certain First Amendment to Communications Site Lease Agreement (Ground) dated April 27, 2004, which inter alia expanded the leased premises to 375 square feet (“Original Premises”); and WHEREAS, the Original Lease has expired on its own terms with no further extensions on March 15, 2024; and
WHEREAS, Licensee is the ultimate successor-in-interest to Original Lessee, and Licensee continues to occupy the Original Premises on a month-to-month holdover basis; and WHEREAS, City desires to enter into a new license agreement to allow Licensee to continue to occupy the Original Premises, and Licensee desires to license from City such Original Premises, upon the terms and conditions outlined herein.

NOW THEREFORE, in consideration of the mutual covenants contained herein and intending to be legally bound hereby, the parties hereto agree as follows:

TMO Signatory Level:L04/L05
NLG-104693

EXHIBIT A

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65501.00104\44191568.6
Arroyo Grande Site Name: RESERVOIR 2
Licensee Site Name:

Licensee Site No.: JN45XGO98E

Page 2 of 25 ends

LICENSE
Section 1. Non-exclusive License. Subject to the terms and conditions hereinafter set forth, City grants to Licensee a non-exclusive license to install, operate and maintain its Communications Facility, as particularly described in Exhibit B hereto, on a portion or portions of that certain real property owned by the City located at 200 Hillcrest Drive, Arroyo Grande, CA 93420,commonly known as the Reservoir 2, as legally described in Exhibit A attached hereto (“Property”) as designated and approved by City. The site plan attached as Exhibit B depicts the specific dimensions, appearance, equipment and approved location of the Communications Facility on the Property to be used by Licensee under this License (“Licensed Area”). The Licensed Area includes (i) designated space on City’s existing surface infrastructure; (ii) approximately 375 square feet of designated surface ground space; (iii) space for cabling to connect the equipment located on the City’s existing surface infrastructure with the equipment located within the ground space; (iv) the Access Route (as defined below); and (v) utility routes all as depicted in Exhibit B. Notwithstanding City’s approval of Licensee’s use of the Licensed Area or the Property, nothing in this License may be deemed to grant, convey, create, or vest in Licensee a real property interest in land, including any fee, leasehold interest, or easement. The term “Communications Facility” as used in this License shall include all antennas, facilities, structures, foundations, pads, cables, conduits and equipment and utilities that Licensee erects, installs and/or uses on or under the Property, as authorized and depicted in Exhibit B, as may be modified from time to time in accordance with this License.

Section 1.1 All Parties acknowledge that City, in executing this License, is acting only in its proprietary capacity as the owner of the Property and Licensed Area, and not in any regulatory fashion. Licensee shall not consider this License as approval of any applicable permits, licenses or other governmental approvals required for the construction or operation needed for the use described herein.

Section 2. Access License. Licensee shall have the right of non-exclusive ingress and egress to the Licensed Area, seven (7) days a week, twenty-four (24) hours a day, via foot or motor vehicle (but not including vehicles with more than two (2) axles/more than twenty (20) feet in length, and 19,500lbs gross vehicle weight) upon the access area delineated as such in Exhibit B (“Access Route”), in order to install, operate, and maintain the Communications Facility, subject to the limitations set forth below.

Section 2.1 Prior to accessing the Property in each instance, Licensee shall provide written notice to City during City’s normal business hours at least two (2) business days in advance of the date of its requested access date. Access requests submitted outside of normal City business hours and on weekends and national holidays, shall not be deemed submitted until 9 a.m. PST the next City business day, at which time the two (2) business days advance notice period shall commence. All access shall require a City escort, unless waived in writing by the City. Access shall be limited to normal City business hours only.

Section 2.2 Access Outside Normal City Business Hours. City may in its sole and absolute discretion, grant access to the Licensed Area outside of its normal business hours.

Requests to access the Licensed Area outside of the City’s normal business hours shall be submitted in writing to City during City’s normal business hours at least two (2) business days in TMO Signatory Level:L04/L05
NLG-104693

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65501.00104\44191568.6
Arroyo Grande Site Name: RESERVOIR 2
Licensee Site Name:

Licensee Site No.: JN45XGO98E

Page 3 of 25 ends

advance of the date of its requested access date. Access requests submitted outside of normal City business hours and on weekends and national holidays, shall not be deemed submitted until 9 a.m.

PST the next City business day, at which time the two (2) business days advance notice period shall commence. In the event, City permits such access outside it normal business hours, Licensee shall reimburse City for all costs and expenses incurred by City in order to provide such access, including, but not limited to overtime or other City costs. Following such access, City shall provide to Licensee an invoice outlining such costs, and Licensee shall have thirty (30) days to make sure reimbursement as outlined in the City’s invoice.

Section 2.3 Emergency Access. In the event Licensee or its contractors, subtenants, sublicensees, or invitees require emergency access to the Licensed Area in order to correct a bone fide imminent threat of harm or damage to its property, Licensee’s designated site manager shall contact the City by phone at [805-472-5420] (during normal City business hours) or [805-709- 1001] (outside of normal City business hours) to arrange such access. The City shall in good faith attempt to expeditiously provide emergency access as requested provided City personnel is available to provide access. Licensee shall reimburse City for all costs and expenses incurred by City in order to provide access occurring outside of the City’s normal business hours. The parties shall utilize the timeline and invoice procedure outlined in 2.2 for reimbursement of City costs and expenses.

Section 2.4 Access Control Devices. Access to the Licensed Area is restricted and/or locked by City personnel to ensure the security of City’s critical water infrastructure and improvements. Therefore, in order to utilize the Access Route, Licensee and its contractors, subtenants, sublicensees, or invitees must use the City’s gates and other access control devices as may be updated from time to time in the City’s sole discretion.

Section 2.5 All access to the Licensed Area by Licensee shall be subject in each instance to all applicable permits and ordinances, as well as any local, state, and federal laws (“Laws”) in addition to this License. Further, when City’s access to a site is established through an access easement over third party property to the Property (“Access Easement”), nothing herein shall be deemed to be a representation or warranty by City that its interest or other rights to use the Access Easement is sufficient to permit its use for Licensee’s purposes, and Licensee shall be deemed to gain only those rights to use as are properly in City and as City may have the undisputed right and power to give Licensee. Licensee assumes the risk of any challenge, claim, litigation or damage, asserted in connection with Licensee’s use of the Access Easement for ingress and egress to the Property and releases City from any and all responsibility, claim, damage, related to or in connection with Licensee’s use of the Access Easement. If City’s continued use of the Access Easement is challenged or threatened in any way by Licensee’s use of the Access Easement, upon notice from City, Licensee shall cease ingress and egress to the Property until such time as the challenge or threat to City’s continued use of the Access Easement is resolved which may require Licensee to obtain any necessary approvals, licenses or easements from the third-party property owner at its sole cost and expense.

Section 2.6 City Work; Closures of Access Route. Licensee acknowledges and accepts that City, in its sole and absolute discretion, may from time to time perform work, repairs, modifications or otherwise improve the Access Route (“Access Route Work”), which may require temporary closure of the Access Route. In the event that City plans to perform Access Route Work TMO Signatory Level:L04/L05
NLG-104693

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65501.00104\44191568.6
Arroyo Grande Site Name: RESERVOIR 2
Licensee Site Name:

Licensee Site No.: JN45XGO98E

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that requires temporary closure of the Access Route, City shall provide Licensee with fifteen (15) calendar days’ advance written notice of such planned Access Route Work. In the event of emergency Access Route Work that requires immediate temporary closure of the Access Route, City shall provide Licensee with written notice as soon as reasonably practicable. City shall bear no liability or responsibility towards Licensee for such closure of the Access Route and the License Fee shall not abate for any Access Route closures due to any Access Route Work, except to the extent such closure is directly caused by the gross negligence or willful misconduct of City, in which case the License Fee shall abate proportionately for the period during which Licensee is unable to access the Licensed Area.

Section 2.7 City assumes no responsibility for maintaining, repairing and inspecting the Access Route. Licensee shall, at their sole cost and expense, repair any damage to the Property and Access Route to the extent caused by Licensee or its tenants, subtenants, licensees or sublicensees, and shall be liable to City for any such damage. Upon City’s written request, Licensee shall repair any such damage at its sole expense within sixty (60) days of receipt of such notice. If Licensee fails to comply with this Section 2 within the applicable sixty (60) period, City may complete or cause to be completed the work (among other permitted remedies), and Licensee shall reimburse the City for such invoiced costs within thirty (30) days of receipt. City shall have the right under this Section 2 to require Licensee to make repairs to the Access Route to the extent necessary to remedy conditions caused by Licensee or its tenants, subtenants, licensees, or sublicensees. In no event shall Licensee be required to repair any damage to the Property or the Access Route beyond the condition of the Property or the Access Route as it existed immediately prior to the occurrence of such damage.

Section 3. Permitted Use. Licensee may transmit and receive communication signals and install, operate and maintain the Communications Facility in the Licensed Area in accordance with the site plan and dimension sketch of the Communications Facility in Exhibit B hereto.

Licensee may not install any other facilities or equipment of any kind that is not otherwise described and depicted in Exhibit B or otherwise intensify, expand, or alter its use of the site or the Communications Facility without City’s prior written consent which may be granted or denied in City’s sole discretion,
Section 3.1 Licensee acknowledges that the primary purpose of the Property is to serve as a valuable asset to the community of Arroyo Grande and the City itself, and Licensee’s use of the Property shall be subject to City’s paramount rights (“Paramount Rights”) to use the Property for any and all current and future uses necessary for City’s municipal needs. If City determines that Licensee is inhibiting or interfering with such use, City shall notify Licensee by telephone to 888-218-6664 with written confirmation notice to follow within twenty-four (24) hours, and Licensee shall cease such interference within forty-eight (48) hours. In case of an emergency, City may take steps to eliminate such interference without prior notice to Licensee and Licensee shall reimburse City for any and all reasonable costs incurred to eliminate such interference.

Section 3.2 Any required permits or approvals for the Communication Facility shall be obtained by Licensee at Licensee’s sole expense. Furthermore, it is understood and agreed that Licensee’s ability to install the Communication Facility is contingent upon its obtaining, prior to construction of Communication Facility, all of the certificates, permits, authorizations, and other approvals that may be required by any federal, state, or local authorities, including but not limited TMO Signatory Level:L04/L05
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to any permits, authorizations, and approvals required by the San Luis Obispo County Air Pollution Control District (collectively, the “Governmental Approvals”; individually, a “Governmental Approval”). City shall bear no responsibility or liability under this License for Licensee’s inability to make use of the Licensed Area for the Communication Facility due to a failure to obtain any required permit, authorization, or approval. If Licensee fails to receive such permits, authorizations, or approvals within one (1) year of the Effective Date of this License, this License shall automatically terminate.

Section 4. License Term; Renewal Term. The initial term of this License shall be five (5) years (“Initial Term”), commencing on the Effective Date. The Initial Term of this License shall expire at 11:59pm local time on the day before the fifth (5th) anniversary of the Effective Date. Unless either party gives written notice of its intention not to extend the License to the other party at least six (6) months prior to the end of the Initial Term or any Renewal Term, as applicable and then in effect, and provided Licensee is not in default under this License beyond applicable notice and cure periods, this License shall automatically be extended upon the expiration of the Initial Term, or Renewal Term, as applicable, for three (3) additional terms of five (5) years each (“Renewal Term”), subject to all terms and conditions of this License. The Initial Term and Renewal Term shall be collectively known as the “Term”.

Section 5. License Fee; Increases; Late Payments. Commencing on the first day of the month immediately following the Effective Date, Licensee shall pay City on or before the fifth (5th) day of each calendar month in advance, Three Thousand One Hundred Dollars and 0/100 ($3,100.00) (“License Fee”), at the address set forth above. In any partial month occurring after the Effective Date, the License Fee will be prorated. Each year on the anniversary of the Effective Date, the License Fee shall increase annually by an amount equal to three percent (3%) over the amount of the License Fee in effect immediately prior to such increase. The License Fee shall be payable without offset or deduction by check sent to City's address specified below or to any other person or firm as City may, from time to time, designate in writing at least sixty (60) days in advance of any License Fee due date.

Section 5.1 If, at any time, Licensee fails to make timely payment, interest shall accrue on the past due amount at the rate of ten percent (10%) per month or the maximum allowable by law, whichever is greater, until the License Fee any all accumulated interest is paid in full. This right to collect interest is in addition to all rights of City to terminate this License for non-payment pursuant to Section 8 of this License.

Section 6. Holdover. If the Communications Facility or any part thereof is still on the Property, or Licensee is still conducting any activities or operations on the Property, or is otherwise using the Property without a written agreement with City after expiration of the Term, such possession or use shall be deemed a holdover use under the same terms and conditions of this License, except that the License Fee shall be one hundred fifty percent (150%) of the License Fee in effect at the expiration of the Term, and shall be payable in advance in equal monthly installments. Nothing contained herein shall grant Licensee the right to holdover after the expiration of the License Term or, if applicable, the Renewal Term and notwithstanding the payment of license fees during the holdover period, City shall have the right to require Licensee to vacate the Property at any time upon thirty (30) days written notice.

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Section 7. Relocation of Communication Facility. Licensee understands and agrees that from time to time during the Term, City may require Licensee to remove and/or relocate all or portions of the Communications Facility from the Licensed Area temporarily or permanently at Licensee’s expense in order for City to exercise its Paramount Rights at the Property, provided, however, that if such relocation is required solely for City’s convenience and not due to a bonafide municipal need, emergency, legal compliance, or Licensee’s default, City shall reimburse Licensee’s reasonable, documented relocation costs.

Section 7.1 Temporary Relocations. City shall endeavor to give Licensee at least ninety (90) days prior written notice of the necessity to relocate the Communications Facility for a temporary period, and will use good faith efforts to provide temporary space at the Property, or another mutually acceptable City-owned location for such temporary relocation; provided Licensee is not in default under this License. Licensee shall be solely responsible at its cost for obtaining any necessary permits and otherwise complying with all laws, permits, and other rules and regulations of any public entity applicable in connection with the temporary relocation of its Communications Facility. Licensee acknowledges that in case of emergency (as determined by City in its sole discretion), the notice period for temporary relocation may be shortened.

Notwithstanding any relocation or any shortened notice period, the License shall continue without abatement of the License Fee unless City is unable to provide space for temporary relocation and as a result Licensee is required to cease to operate its Communications Facility for a period of more than fourteen (14) days in which event Licensee shall be entitled to an abatement of the License Fee equivalent to the number of full days in excess of fourteen (14) days during which Licensee was unable to operate its Communications Facility multiplied by 1/365 of the License Fee applicable during such period. City will calculate and refund such abatement amount without interest within sixty (60) days after the end of the temporary relocation period Section 7.2 At the end of the temporary relocation period, Licensee shall at its cost return the relocated Communications Facility to the Licensed Area, unless the parties mutually agree that the Communications Facility may remain at the temporary location in which case the parties shall memorialize such agreement by an amendment to this License. Licensee shall have a right to terminate this License upon thirty (30) days prior written notice to City if any temporary relocation exceeds ninety (90) days, or if City requires Licensee to relocate the Communications Facility more than one (1) time during the Initial Term, or more than one (1) time during any one of the Renewal Terms. If this License is terminated for such reason, City shall refund pre-paid and unused months of the License Fee on a proportionate basis, but Licensee shall not be entitled to reimbursement or payment by City of any further expenses or costs it may incur by reason of its election to terminate this License hereunder.

Section 7.3 Permanent Relocations. City may require Licensee to relocate the Communications Facility from time to time, not to exceed once per any Renewal Term. City shall endeavor to give Licensee at least one hundred eighty (180) days prior written notice of the necessity to relocate the Communications Facility or a portion thereof to a new location upon the Property, and will use good faith efforts to provide another mutually acceptable City location on the Property for such relocation; provided Licensee is not in default under this License. Licensee shall be solely responsible at its cost for relocating the Communications Facility and obtaining any TMO Signatory Level:L04/L05
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necessary permits and otherwise complying with all laws, permits, and other rules and regulations of any public entity applicable in connection with the relocation of its Communications Facility at City’s request. Licensee shall have a right to terminate this License upon ninety (90) days prior written notice to City if Licensee’s relocation of the Communications Facility to the mutually agreeable alternative location on the Property is technically infeasible. If the License is terminated for such reason, City shall refund pre-paid and unused months of the License Fee on a proportionate basis, but Licensee shall not be entitled to reimbursement or payment by City of any further expenses or costs it may incur by reason of its election to terminate this License hereunder.

Section 8. City’s Termination. In addition to other rights of termination and revocation City has under this License, City may terminate and revoke this License prior to expiration of the Term in any of the following circumstances: By giving Licensee twelve (12) months prior written notice, for any reason, in City’s sole and absolute discretion.

Section 8.2 By giving Licensee thirty (30) days prior written notice, if Licensee fails to maintain and repair the Communications Facility according to the requirements of the License and fails to cure such non-compliance in response to any City request for such repairs within thirty (30) days or within such shorter time specified by City in such written request. Further, if City in its sole discretion determines that the Communications Facility is in a state of disrepair which imminently endangers the health and safety of City employees and other users of the Property, City may terminate the License and take steps to address the situation immediately without prior notice to Licensee, provided that City shall thereafter notify Licensee of the situation, and Licensee shall reimburse City for its actual costs incurred to take such action.

Section 8.3 If Licensee fails to pay the License Fee when due, City may, after giving ten (10) days prior written notice to Licensee, terminate and revoke this License and seek other remedies, as appropriate, under the laws of the State of California, unless Licensee cures such default by payment of the License Fee and accrued interest charges within such notice period.

Section 8.4 If Licensee fails to perform or observe any of terms or conditions of this License, City may, after giving sixty (60) days prior written notice to Licensee terminate and revoke this License and seek other remedies, as appropriate, under the laws of the State, unless Licensee cures such default within such notice period.

Section 9. Licensee’s Limited Termination Right. It is understood and agreed that Licensee’s ability to use the Property is contingent upon Licensee continually maintaining in full force and effect, after the Effective Date, all the certificates, permits, and other approvals that are required by any federal, state, or local authorities. In the event that any certificate, permit, license, or approval issued to Licensee is canceled, expires, lapses, or is otherwise withdrawn or terminated by any governmental authority so that Licensee is unable to use the Property for its intended purposes, Licensee may terminate this License upon ninety (90) days written notice to City, except that those terms that by their nature survive termination such as Licensee’s obligations to remove the Communications Facility and restore the Property , and the indemnity obligation shall survive in accordance with the terms of this License.

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Section 10. Licensee’s Installation, Ownership, Operation and Maintenance; FCC Regulations, Emissions Testing; Compliance with Law.

Section 10.1 Licensee shall install, construct and maintain the Communications Facility in accordance with this License.

Section 10.2 It is expressly understood and agreed that any and all fixtures and equipment of whatsoever nature at any time constructed or placed on the Property by Licensee shall be and remain the personal property of Licensee. Licensee shall have the right at any time during the License Term, and the Renewal Term, if applicable, to remove any and all fixtures and equipment owned or placed by Licensee in, under, or upon the Licensed Area.

Section 10.3 Licensee is not authorized to contract for or on behalf of City for work on, or the furnishing of materials to the Licensed Area or any other part of the Property, and Licensee shall discharge of record by payment, bond or otherwise, within ten (10) days subsequent to the date of its receipt of notice thereof from City, any mechanic's, laborer's or similar lien filed against the Licensed Area or the Property for work or materials claimed to have been furnished at the instance of Licensee.

Section 10.4 In the event that Licensee seeks to modify the Communications Facility, expand the Licensed Premises, or install new, additional, replacement or upgraded equipment and other supporting appurtenances that are not specifically described and depicted in Exhibit B, Licensee shall submit a written proposal and a detailed site plan depiction to the City for its review and approval in the City’s sole and absolute discretion (each a “Modification Proposal”). Any Modification Proposal that involves an increase in overall height, weight, cubic volume, or bulk of the Communications Facility shall require an increase in the License Fee. City’s review of a Modification Proposal shall include a review of the appearance of the Communications Facility and the City may reject a Modification Proposal on aesthetic grounds among other City grounds in its sole and absolute discretion. The Communications Facility to be installed must be in compliance with all federal, state, and local laws, including but not limited to local zoning requirements. City’s approval of any Modification Proposal is not a representation that such installation of the Communications Facility, as modified is in compliance with all applicable governmental laws, ordinances, rules and regulations or that such facilities will not cause interference with other communications systems, if any, then in operation on the Property.

Licensee hereby confirms and agrees that its Communications Facility shall be installed and operated solely within the Premises. Notwithstanding the foregoing, Licensee may, without City’s consent, (i) replace or upgrade equipment within the Licensed Area with like-kind or technologically equivalent equipment, provided such replacement or upgrade does not increase the overall height, weight, cubic volume, or bulk of the Communications Facility and does not materially alter its appearance as depicted in Exhibit B; and (ii) make changes, replacements, or upgrades within the ground space portion of the Licensed Area, provided such changes remain entirely within the boundaries of the Licensed Area and do not increase the overall footprint depicted in Exhibit B.

Section 10.5 Licensee, at Licensee’s sole cost and expense shall keep and maintain, or cause to be kept and maintained, the Communications Facility in a state of good appearance and repair, reasonable wear and tear excepted. Upon City’s written request, Licensee shall complete TMO Signatory Level:L04/L05
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all such work at its sole expense within thirty (30) days of receipt of such notice. If the Licensee fails to comply with this Section 10, the City may complete or cause to be completed the work, and Licensee shall reimburse the City for such invoiced costs within thirty (30) days of receipt.

Licensee shall install and maintain a sign or placard upon Licensee’s primary access gate within the Licensed Area with up-to-date contact information for Licensee’s key personnel, including but not limited to a phone number for Licensee’s operations team that is staffed twenty-four (24) hours a day seven (7) days a week. Such sign or placard shall be limited in size and shall be no larger than 2 square feet in total surface area. Licensee shall not install any other signage for marketing or other promotional purposes upon the Licensed Area or Property.

Section 10.6 Prior to performing any hot work on the Property that may generate sparks, flame, or other reasonably foreseeable combustion, Licensee shall obtain all required hot work permits, including but not limited to all approvals required by the applicable fire department and/or fire authority hot work permits, and shall comply with all fire prevention requirements and conditions. City, upon fifteen (15) calendar days’ advance written notice to Licensee, may enter upon the Licensed Area to conduct an annual safety inspection to evaluate compliance with applicable building codes, fire prevention and other health and safety requirements applicable to the Licensed Area. Licensee may escort City personnel during any such annual safety inspection.

Licensee shall correct all violations of applicable building codes, fire prevention and other health and safety requirements applicable to the Licensed Area, within thirty (30) calendar days following City’s notifications of such violation(s) following an annual safety inspection.

Section 10.7 Licensee shall be a member of the regional notification center for subsurface installations (Underground Services Alert) and shall field mark, at its sole expense, the locations of its underground utilities, fiber, conduits, and other subsurface installations and comply with the requirements of Section 4216 of the Government Code, as it now reads or may herein after be amended. Repeal or amendment of Government Code Section 4216.1 shall not negate Licensee’s obligation to maintain such membership, unless such repeal or amendment disbands or eliminates Underground Service Alert of Northern California and Nevada, and shall not negate any notice requirement to City. Wherever possible, Licensee shall utilize the servicing utility and fiber owner complete or supervise the installation of underground utilities, fiber, conduits, and other subsurface installations.

Section 10.8 Licensee shall, at its sole cost and expense, protect, replace and provide any landscaping required in its Governmental Approvals and shall promptly replace any City landscaping damaged by Licensee’s activities. Upon City’s written request, Licensee shall complete all such work at its sole expense within thirty (30) days of receipt of such notice. If the Licensee fails to comply with this Section 10, the City may complete or cause to be completed the work, and Licensee shall reimburse the City for such invoiced costs within thirty (30) days of receipt.

Section 10.9 Licensee shall, at its sole cost and expense, repair any damage it may cause to the Licensed Area, access areas, means of ingress or egress, or any Access Easement. Upon City’s written request, Licensee shall repair any such damage at its sole expense within thirty (30) days of receipt of such notice. If the Licensee fails to comply with this Section 10, the City may TMO Signatory Level:L04/L05
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complete or cause to be completed the work, and Licensee shall reimburse the City for such invoiced costs within thirty (30) days of receipt.

Section 10.10 Licensee shall have a separate meter installed for Licensee's electrical power consumption, whereupon Licensee shall be solely responsible for payment of all of its electrical utilities costs. No other connection is authorized by this License, and no other fuels of any type shall be used or stored by Licensee within the Licensed Area without the advance written consent of City.

Section 10.11 In addition to compliance with specific laws otherwise described in this License, Licensee shall comply, and will ensure that its contractors and representatives will comply, with all regulations and requirements of the FCC and the California Public Utilities Commission, and all other federal, state and local laws, ordinances, rules and regulations, including health and safety requirements, pertaining to the construction, installation, operation and maintenance of the Communications Facility and work on the Property during the License Term and Renewal Term, and in conjunction with any activities undertaken on the Property by Licensee either prior to the Effective Date, or after expiration of this License. Requirements of the federal Occupational Safety and Health Administration (OSHA) and the California Division of Occupational Safety and Health (CAL-OSHA), whichever is stricter, shall be adhered to at all times during any activities on the Property by Licensee and its contractors or other representatives.

Licensee shall have a safety and injury prevention program in place for the construction, installation, operation and maintenance of the Communications Facility and work on the Property, if required by laws or regulations. If required by law or regulation, a copy of any such program shall be on the Property at all times.

Section 11. Removal & Restoration. Within thirty (30) days of the expiration or earlier termination of the License, Licensee shall (1) remove all of the Communications Facility at its sole expense and (2) repair any damage to the Licensed Area caused by such removal and shall return the Licensed Area to the condition which existed before the Effective Date, reasonable wear and tear and casualty loss not caused by Licensee excepted. Notwithstanding the above, prior to the expiration or earlier termination of the License, City may retain any structures, conduits, or other improvements at the Property installed or placed by Licensee or at Licensee’s direction by mutual agreement with Licensee. If the Licensee fails to remove its Communications Facility and restore the Licensed Area as required by this Section 11 within such thirty (30) day period, Licensee shall be obligated to pay to City holdover rent for its continued occupancy from the termination date or expiration of this License until Licensee completes its removal and restoration obligations of this Section 11; and the City may complete or cause to be completed the work, and Licensee shall reimburse the City for such invoiced costs, plus a ten-percent (10%) surcharge for reimbursement of City staff time and/or outside contractor costs, within thirty (30) days of receipt.

Section 12. Prior Communications Facilities on Property, City Communications Systems; Non-interference.

Section 12.1 Licensee acknowledges and understands that there may be communications facilities on Property belonging to one or more third parties (referred to as the “Prior User(s)”) that has entered into an agreement(s) (the “Prior Use Agreement(s)”) with City, pursuant to which the Prior User(s) has(ve) been permitted to install and operate communications equipment on the TMO Signatory Level:L04/L05
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Property. Where applicable, Licensee represents and warrants that prior to the execution of this License, Licensee has determined that the Prior Users present no material interference with Licensee’s intended use within the Licensed Area.

Section 12.2 Licensee shall operate the Communications Facility in a manner that will not cause harmful interference to (i) the City’s use of the Property, or (ii) any communications equipment operated and/or owned by the Prior User(s) as of the Effective Date, provided that the Prior User(s) operates its communications equipment in accordance with the terms of the Prior Use Agreement(s). If Licensee’s Communications Facility causes such harmful interference, Licensee will immediately take all steps necessary to correct and eliminate the interference, including but not limited to, at Licensee’s option, powering down such equipment and later powering up such equipment for intermittent testing. If such interference cannot be corrected or powered down within two (2) days after Licensee is advised of such interference, City may require that Licensee cease (or cause the cessation of) operation of the interfering equipment (subject to intermittent testing to confirm the interference has been corrected) until such interference can be so corrected at which time the operation of such equipment may resume.

Section 12.3 Licensee further acknowledges that City assumes no risk or liability for any interference with Licensee’s use of the Property which results from the operation of communications equipment on the Property by the Prior User(s) under the Prior Use Agreement(s) and agrees that City shall be held harmless from claims due to any such interference, pursuant to the indemnification terms set forth in Section 16 herein.

Section 12.4 City reserves the right to license other portions of the Property to third parties during the License Term and Renewal Term, if applicable. If, subsequent to the installation of the Communications Facility, the new third party equipment on the Property causes harmful interference with the Communications Facility, Licensee shall use its best efforts to resolve the interference issues in cooperation with the owner and operator of the new equipment without involving City personnel. If any such subsequent users cannot correct such harmful interference within ten (10) business days of Licensee’s written notification thereof to City, Licensee may terminate this License upon sixty (60) days written notice to City and obtain a refund of prepaid unused amounts of the License Fee, or seek injunctive or other legal relief against/from such subsequent third party users. The refund shall be Licensee’s sole and exclusive remedy and recovery as against City for any interference, and Licensee hereby waives any other rights or remedies it may have at law or in equity against City related thereto. The parties recognize and agree that it is the intention of this Section 12 that City not become embroiled in any disputes or proceedings between Licensee and any other users of the Property, and/or expend funds as a result thereof; therefore, Licensee agrees to indemnify, defend, and hold harmless the City against any claim related to or arising from any disputes or proceedings between Licensee and any other users of the Property.

Section 12.5 Should Licensee be notified by any government agency of any violation relating to Licensee’s use of the Licensed Area or the Communications Facility, it must share said notice with City within five business days of notice and Licensee shall provide City documentation from the government agency that Licensee has cured the default. Licensee shall indemnify City and hold it harmless from all expenses, costs, damages, loss, claims or other expenses and liabilities arising from any interference caused by Licensee's failure to comply with FCC or FAA TMO Signatory Level:L04/L05
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rules and regulations that is not curtailed within thirty (30) days after Licensee receives written notice of such interference from City. Licensee shall be responsible for all costs associated with any tests deemed necessary to resolve any and all interference as set forth in this License. If such interference caused by Licensee's failure to comply with FCC or FAA rules and regulations has not been corrected within thirty (30) days after Licensee receives notice thereof from City, City may require Licensee to remove the specific items from the Facilities causing such interference.

Section 12.6 Nothing contained in this Section 12 or elsewhere in this License is intended to confer any rights or remedies under, or by reason of this License on, or waive any claims against, or adversely affect any rights of, any person or entity other than the parties hereto.

Section 13. Performance Bond. On or before the Effective Date, Licensee shall obtain a faithful performance bond, in the amount of One-Hundred Fifty Thousand Dollars and 00/100 Dollars ($150,000.00), from a bond company duly licensed to do business in California in favor of City (the "Bond"). The Bond shall secure (1) Licensee's removal of its equipment from the Licensed Area following the expiration or earlier termination of the License and restoration of the Licensed Area to the condition it existed prior to the Effective Date, reasonable wear and tear excepted, and (2) the recovery of any unpaid sums duly owed to the City under this License. The Bond shall be maintained in force by Licensee throughout the License Term and Renewal Term, if applicable. Licensee agrees to deliver to City a copy of the Bond prior to commencement of construction activities on the Licensed Area (or if the License is a renewal for a previously constructed facility, prior to full execution of the License). Prior to the commencement of any Renewal Term, City and Licensee shall review the amount of the Bond to assess whether the amount of the Bond is reasonably sufficient to cover then current removal and restoration costs.

If it is reasonably determined to be insufficient, Licensee shall obtain and maintain in force a Bond for such additional amount that City reasonably determines to be sufficient.

Section 14. Environmental.

Section 14.1 For purposes of this License, the term “Hazardous Substances” means: (a) any substance, products, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 United States Code Section 9601 et seq.; the Resources Conservation and Recovery Act, 42 United States Code Section 6901 et seq.; the Hazardous Materials Transportation Conservation and Recovery Act, 42 United States Code Section 1801 et seq.; the Clean Water Act, 33 United States Code Section 1251 et seq.; the Toxic Substances Control Act, 15 United States Code Section 2601 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the Hazardous Substance Account Act, Health and Safety Code Section 25330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249.5 et seq.; California Health and Safety Code Section 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code Section 25170.1 et seq.; California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory); or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000 et seq., all as amended, ; or any other federal, state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance, now or at any time hereinafter in TMO Signatory Level:L04/L05
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effect; (b) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court ; (c) petroleum or crude oil, other than petroleum and petroleum products which are contained within regularly operated motor vehicles; and (d) asbestos.

Section 14.2 Except as otherwise specifically permitted under the terms of this License, Licensee shall not use, create, generate, store, deposit, dispose of or allow any Hazardous Substances on, under, about or within the Property or Licensed Area in violation of any federal, state, or local law, rule, regulation, order, decree or other requirement listed in this Section 14. For any such Hazardous Substances, Licensee shall submit a hazardous materials business plan to the California Environmental Reporting System (CERS) and shall be subject to permitting/inspections by the local Certified Unified Program Agency (CUPA). Batteries for emergency power and fuel for temporary generators during power outages may only be used or stored on-site with the prior written approval of City. On site use, but not storage, of ordinary paints, solvents and similar substances commonly used in small quantities and necessary for maintenance of Licensee’s Communications Facility are excepted from the preceding prohibition of use by Licensee of Hazardous Substances on the Licensed Area and the Property, so long as Licensee complies with all applicable federal, state and local laws rules and regulations governing the use of such items.

Section 14.3 Unless depicted in Exhibit B, no underground or above ground storage tanks shall be installed on Licensed Area. If depicted in Exhibit B and duly authorized by City, all underground or above ground storage tanks shall utilize secondary containment at all times.

Section 14.4 City or its officers, employees, contractors, or agents shall at all times have the right to go upon and visually inspect the Licensed Area and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may also include taking samples for chemical analysis of substances and materials present and/or testing soils on the Licensed Area and taking photographs. Except in case of emergency, City will not take samples or test soils on the Licensed Area without providing Licensee with reasonable advance notice and the opportunity to have a representative present.

Section 14.5 Licensee shall, within forty-eight (48) hours of the discovery by Licensee of the presence of, or believed presence of, a Hazardous Substance as defined herein, give written notice to City in the event that Licensee knows or has reasonable cause to believe that any release of Hazardous Substance has come or will come to be located on, under, about or within the Licensed Area. The failure to disclose in a timely manner the release of a Hazardous Substance by Licensee, including but not limited to, an amount which is required to be reported to a state or local agency pursuant to law (e.g., California’s Hazardous Materials Storage and Emergency Response Act, Health and Safety Code Section 25550 et seq.) shall be grounds for termination of this License by City in addition to actual damages and other remedies provided by law. Licensee shall immediately clean up and completely remove all Hazardous Substances released by Licensee on, under, about or within the Licensed Area or the Property, in a manner that is in all respects safe and in accordance with all applicable laws, rules and regulations.

Section 14.6 In the event a Hazardous Substance release is discovered by Licensee, Licensee shall disclose to City the specific information regarding Licensee’s discovery of any TMO Signatory Level:L04/L05
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Hazardous Substances placed on, under, about or within the Licensed Area or the Property by Licensee, and provide written documentation of its safe and legal disposal.

Section 14.7 Breach of any of these covenants, terms, and conditions, and Licensee’s failure to cure within thirty (30) days of Licensee’s receipt of written notice from City, shall give City the authority to either immediately terminate this License or to shut down Licensee’s operations thereon, at the sole discretion of City, provided, that in the event such cure reasonably requires more than thirty (30) days to complete, then City shall have no such authority if Licensee promptly commences the cure of such default and diligently pursues such cure to completion. In either case, Licensee will continue to be liable under this License to remove and mitigate all Hazardous Substances placed by Licensee on, under, about or within the Licensed Area or the Property. Licensee shall be responsible for, and bear the entire cost of removal and disposal of, all Hazardous Substances introduced to the Licensed Area or the Property by Licensee during Licensee’s period of use and possession of the Licensed Area. Upon termination of this License, Licensee shall, in accordance with all laws, remove from the Licensed Area any equipment or improvements placed on the Licensed Area by Licensee that may be contaminated by Hazardous Substances.

Section 14.8 Licensee shall defend, indemnify and hold City and its officials, officers, employees, contractors and agents free and harmless from any and all claims, liability, injury, damage, costs, fines, or expenses (including, without limitation, the reasonable cost of attorney’s fees) arising as a result of the presence of use of any Hazardous Substances placed or caused to be placed by Licensee or its partners, affiliates, agents, officials, officers, contractors or employees on the Licensed Area or the Property. City shall defend, indemnify and hold Licensee and its officials, officers, employees, contractors and agents free and harmless from any and all claims, liability, injury, damage, costs, fines, or expenses (including, without limitation, the reasonable cost of attorney’s fees) arising as a result of the presence of use of any Hazardous Substances placed or caused to be placed by City or its partners, affiliates, agents, officials, officers, contractors or employees on the Property. The foregoing indemnity is intended to operate as an agreement pursuant to, among other requirements, Section 107, subdivision (e) of CERCLA, 42 United States Code Section 9607, subdivision (e), and California Health and Safety Code Section 25364, to insure, protect, hold harmless and indemnify each party from any liability created by the other party pursuant to such sections. Notwithstanding anything herein to the contrary, Licensee shall have no liability or obligation hereunder for any Hazardous Substances in, on, at or under the Licensed Area or Property due to the acts or omissions of any person or entity other than Licensee or its partners, affiliates, agents, officials, officers, contractors or employees.

Section 15. Insurance. During the life of this License, Licensee shall procure and maintain insurance against claims for injuries or death to persons or damages to property which may arise from or in connection with the Licensee’s operations and use of the facilities and the activities of the Licensee, guests, agents, representatives, employees or sub-contractors. The Licensee shall provide and maintain the following commercial general liability, workers’ compensation and property coverage that is at least as broad as follows:

Section 15.1 General Liability: Insurance Services Office (ISO) Commercial General Liability Coverage (Occurrence Form CG 00 01) including property damage, bodily injury and TMO Signatory Level:L04/L05
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personal & advertising injury with limits of at least two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) aggregate.

Section 15A Workers' Compensation Insurance: The Licensee shall provide workers’ compensation coverage as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease..

Section 15B Property insurance against all risks of loss to any Licensee’s real and personal property including Licensee improvements or betterments, at full replacement cost with no coinsurance penalty provision.

Section 15.2 Required Provisions. The Commercial General Liability policy is to contain, or be endorsed to contain, the following provisions:

Section 15A Additional Insured Status: City, its directors, officers, employees, and authorized volunteers are to be included as additional insureds on the commercial general liability policy (at least as broad as ISO Form CG 20 10 10 01 or CG 20 11) as respects: liability arising out of the use of the facilities, work or activities performed by or on behalf of the Licensee . The coverage shall contain no special limitations on the scope of protection afforded to City, its directors, officers, employees, and authorized volunteers.

Section 15B Primary Coverage: For any claims related to Licensee’s operations, negligent acts or willful misconduct, the Licensee’s insurance coverage shall be primary at least as broad as ISO CG 20 01 04 13 (or carrier equivalent) as respects to City, its directors, officers, employees, and authorized volunteers. Any insurance or self-insurance maintained by City, its directors, officers, employees, and authorized volunteers shall be excess of the Licensee’s insurance and shall not contribute with it.

Section 15.3 Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, except with advance notice to City.

Section 15.4 Acceptability of Insurers. Insurance is to be placed with insurers having a current A.M. Best rating of no less than A-:VII or as otherwise approved by City. Licensee agrees that it will comply with such provisions upon the Effective Date. All of the insurance shall be provided on policy forms and through companies reasonably satisfactory to City. In the event a claim giving rise to a coverage dispute City reserves the right to obtain complete, certified copies of all required insurance policies involved in such dispute. Failure to continually satisfy the Insurance requirements is a material breach of contract.

Section 15.5 Verification of Coverage. Grantee shall furnish City with certificates and amendatory endorsements effecting coverage required by the above provisions. All certificates and endorsements are to be received and approved by City at least five days before the Grantee use of facilities commences activities..

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Section 15.6 Any contractor or subcontractor hired by the Licensee for construction, installation, operation, maintenance, and removal of the Communications Facility shall maintain insurance coverage equal to that required of the Licensee under this Section 15 of this License and shall include City as an additional insured with respect to liability insurance coverage. It is the responsibility of the Licensee to ensure compliance with this provision. City accepts no responsibility arising from the acts or omissions of Licensee’s contractor or subcontractor.

Licensee hereby agrees to pay any fines and fees related to the Communications Facility and agrees to indemnify and hold City harmless for any fines or fees that may be imposed on City as a result of the installation, operation, maintenance, and removal of the Communications Facility.

Section 16. Indemnification. To the furthest extent allowed by law, Licensee shall indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage, including damage by fire or other casualty) incurred by City, Licensee, or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of Licensee’s: (i) occupancy, maintenance and/or use of the Licensed Area and/or Communications Facility; or (ii) performance of, or failure to perform, this License. Licensee’s obligations under the preceding sentence shall apply to any negligence of City, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or by the willful misconduct, of City or its officers, officials, employees, agents or volunteers.

Section 16.1 Licensee’s occupancy, maintenance and use of the Licensed Area and Communications Facility shall be at Licensee’s sole risk and expense subject to the terms set forth below. Licensee accepts all risk relating to Licensee’s: (i) occupancy, maintenance and/or use of the Licensed Area and/or Communications Facility; and (ii) performance of, or failure to perform, this License. City shall not be liable to Licensee or Licensee’s insurer(s) for, and Licensee and its insurer(s) hereby waives and releases City from, any and all loss, liability, fines, penalties, forfeitures, costs or damages to the extent resulting from or attributable to an occurrence on or about the Licensed Area in any way related to the Licensee’s operations and activities, except to the extent caused by the gross negligence or willful misconduct of City or its officers, officials, employees, agents or volunteers. Licensee shall immediately notify City of any occurrence on the Premises resulting in injury or death to any person or damage to property of any person.

Section 16.2 If it is necessary for Licensee to contract for the design, construction and/or maintenance of the Communication Facility, Licensee shall require each consultant and contractor to indemnify, hold harmless, defend and release City and its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraphs. The Section shall survive termination or expiration of this License.

Section 17. Casualty and Condemnation
Section 17.1 If at any time during the term of this License all or "substantially all" (meaning the remaining portion thereof shall not be of sufficient size or condition to permit the continuation of Licensee's use of the Communications Facility in a commercially reasonable TMO Signatory Level:L04/L05
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manner) of the Communications Facility upon the Licensed Area, or City’s facilities and improvements upon the Property are damaged and/or destroyed by fire or other casualty, then the party whose facilities and improvements were damaged and/or destroyed by fire or other casualty may terminate this License by providing written notice to the other party, which termination shall be effective as of the date of such damage and/or destruction, and whereupon the party whose facilities and improvements were damaged and/or destroyed by fire or other casualty shall be entitled to collect all insurance proceeds payable on account thereof and to the reimbursement of any prepaid License Fee, if any, to be apportioned as of the termination date.

Section 17.2 If at any time during the term of this License all or "substantially all" (as described in the preceding subsection 17.1) of the Licensed Area or the improvements located on the Property shall be taken in the exercise of the power of eminent domain by any governmental or other authority, or by deed in lieu of condemnation, then Licensee or Licensor may terminate this License by providing written notice to the other party, which termination shall be effective as of the date of the vesting of title in such taking and any prepaid License Fee, if any, shall be apportioned as of said date and reimbursed to Licensee. City and Licensee shall each be entitled to pursue their own separate awards with respect to such taking, but in any event, Licensee's award shall be limited to lost improvements investment, relocation, and loss of business. In the event of any taking of less than all or substantially all of the Premises, this License shall continue and each of City and Licensee shall be entitled to pursue their own separate awards with respect to such taking.

Section 18. Jurisdiction and Venue. This License shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this License, or which in any way arises out of the Parties’ activities undertaken pursuant to this License, shall be filed and prosecuted in the appropriate California State Court in the County of San Luis Obispo, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Permittee expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.

Section 19. Entire Agreement; Amendment. This License constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions and agreements made prior to the date hereof. In the event there is an existing lease or license between Licensee (or its predecessor-in-interest) and City covering the Licensed Area, it is agreed and understood that this License shall cancel, supersede and terminate said prior lease or license as of the Effective Date of this License. This License may not be modified except in a writing executed by both parties.

Section 20. Paragraph Heading and Construction. The section headings contained in this License shall not be considered to be a part hereof for purposes of interpreting or applying this License, but are for convenience only.

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Section 21. Binding on Successors; No Third-Party Beneficiaries. This License, and all of the provisions hereof, shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns. No customer, other person or entity other than the parties shall be deemed to be a third-party beneficiary hereof, and nothing in this License, either express or implied, is intended to confer upon any customer or other person or entity, other than the parties and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this License.

Section 22. Independent Contractors. Licensee’s contractors, agents and representatives are independent contractors of Licensee, and are not employees or independent contractors of City while on the Property, or while engaged in any work on the Property, including the construction, installation, maintenance or operation of the Communications Facility.

Section 23. Limited Assignment/ Sub-licensing.

Section 23.1 This License, or the license interest of Licensee in the Property, shall not be assigned by Licensee except with the prior written consent of City which consent may be withheld in the City’s sole discretion.

Section 23.2 Notwithstanding the foregoing, Licensee may, without City’s consent but upon at least sixty (60) days prior written notice to City, from time to time assign this License in its entirety (i) to any entity which has, directly or indirectly, a fifty-one percent (51%) or greater interest in Licensee (a “Parent”), or to any entity in which Licensee or a Parent has a fifty-one percent (51%) or greater interest, or (ii) any entity that acquires substantially all of Licensee’s assets, or that results from the merger or consolidation of Licensee with another entity. Any such assignment shall not be effective unless and until the assignee executes and delivers to City a written assumption of all Licensee’s obligations under this License. . In no event shall any assignment release Licensee from its obligations under this License without the City’s prior written consent.

Section 23.3 Licensee shall not sublicense the Licensed Area without the advance written consent of City, which consent may be withheld in the City’s reasonable discretion. Prior to doing so, Licensee shall submit to City detailed plans and specifications for the proposed sublicense for the City’s review. Upon execution of each City-approved sublicense, Licensee shall pay City as additional rent fifty percent (50%) of all gross revenue received from such sublicensee (“Collocation Fee”). The Collocation Fee shall be paid in the same manner and subject to the same requirements and conditions as the License Fee. However, in no event shall the Collocation Fee be less than Fourteen Thousand Five Hundred Dollars ($14,500) per annum. This minimum amount shall be adjusted through the term of this License in the same manner as the License Fee.

Moreover, in the event that such sublicensee requires additional ground space outside of the Premises, it shall enter into a separate license with City to do so or this License may be amended to provide for such additional space. City may grant or deny such expansion requests in its sole discretion, including conditioning execution of such new or amended agreements on the payment of additional rent.

Section 23.4 Any attempted or unauthorized assignment or sublicense shall be void and shall be cause for immediate termination of this License by City. The acceptance of License Fees TMO Signatory Level:L04/L05
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by City from any person other than Licensee or an authorized assignee shall not be deemed to be a waiver by City of any provision hereof. Consent to one assignment shall not be deemed consent to any subsequent assignment.

Section 23.5 Requests for consent to assignments and sublicenses shall be submitted to City to the address set forth in Section 25 (“Notice”).

Section 23.6 In connection with the Collocation Fee, Licensee shall accurately maintain, for a period not less than five (5) years following the close of a fiscal year, all records relating to the annual gross revenue from all sublicensees for the rental, license or other occupancy agreement for the use of space and facilities on at the Licensed Area. Licensee shall maintain complete accounting records in accordance with generally accepted accounting principles. City shall have the right, upon ten (10) days advance notice, to inspect all such records and other like materials of Licensee that reasonably relate to Licensee’s Collocation Fee obligations under this Section 23.

Such records shall be made available to City for inspection at Licensee’s regular place of business or such other mutually agreed location, but in no event outside the County of San Louis Obispo, California. If such audit discloses an underpayment of the Collocation Fee, Licensee shall pay to City, within thirty (30) days of written notice from City, the amount of such underpayment, together with interest at the rate of twelve percent (12%) per year computed from the date Licensee should have made the payment. If the underpayment exceeds ten percent (10%) of the amount that should have been paid for any given calendar year, Licensee shall further reimburse the City for the entirety of its audit costs, including, without limitation, auditor’s cost and expenses, internal costs and expenses, and legal and other third party expenses. If an audit discloses an overpayment by Licensee, City shall promptly refund the overpayment without interest, or advise Licensee in writing that it may credit it without interest against future Collocation Fee payments owed by Licensee. For purposes of this Section 23, an “underpayment” or “overpayment” shall consist of the difference between the sum of the payments made by Licensee and the amounts that should have been paid by Licensee in a calendar year, as determined by the audit.

Section 24. Attorneys’ Fees. Should either party institute arbitration or legal or other proceedings against the other for or on account of its failure or refusal to perform or fulfill any of the covenants or conditions of this License on its part to be performed or fulfilled, then the prevailing party in such action or proceeding shall receive from the other party attorney’s fees and costs as adjudged reasonable by the arbitrator, or court.

Section 25. Notice. All notices, requests, and demands hereunder will be given in writing by first class, certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid, to be effective when properly sent and received, refused or returned undelivered. Notices, requests and demands will be addressed to the parties as follows:

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If to Licensee:

T-Mobile USA, Inc.
12920 SE 38th ST
Bellevue, WA 98006
Attn: Lease Compliance/Site ID: SV80566A

If to City:

City of Arroyo Grande
Attn: City Manager
300 E Branch Street
Arroyo Grande, CA 93420
[805-472-5420]
[ [email protected] ]
Either party may change the address or persons to which notices are to be sent to it by giving thirty (30) days’ prior written notice of such change to the other party in the manner provided herein.

Section 26. Counterparts. This License may be executed in counterparts, each of which shall be deemed to be an original.

Section 27. Representations and Warranties. Each party represents and warrants that this License constitutes a legal, valid and binding obligation of such party, and is enforceable against such party in accordance with the terms set forth in the License. Licensee acknowledges and agrees that Licensee is not entitled to relocation assistance, or any other benefits under the Uniform Relocation Assistance Act, or any other applicable provision of law upon termination of this License.

Section 28. NO WARRANTY
LICENSEE’S RIGHT TO USE THE LICENSED AREA AND THE PROPERTY IS STRICTLY ON AN “AS IS” BASIS WITH ALL FAULTS. CITY MAKES NO REPRESENTATION OR

WARRANTY OF ANY KIND AS TO THE PRESENT OR FUTURE CONDITION OF OR SUITABILITY OF THE PROPERTY OR THE LICENSED AREA FOR LICENSEE’S USE

AND DISCLAIMS ANY AND ALL WARRANTIES EXPRESS OR IMPLIED WITH RESPECT

TO THE PHYSICAL, STRUCTURAL, OR ENVIRONMENTAL CONDITION OF THE

PROPERTY, AND LICENSED AREA AND THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. LICENSEE IS SOLELY RESPONSIBLE FOR INVESTIGATION

AND DETERMINATION OF THE CONDITION AND SUITABILITY OF THE PROPERTY, AND LICENSED AREA FOR LICENSEE’S INTENDED USE.

Section 29. Taxes. City hereby provides notice pursuant to California Revenue and Taxation Code Section 107.6, and Licensee acknowledges that this License may create a possessory interest and Licensee may be subject to property taxes levied on such interest, as TMO Signatory Level:L04/L05
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described in California Revenue and Taxation Code Section 107. Licensee shall pay, when due, all real and personal property taxes, fees and assessments, assessed against the Licensed Area and the Communications Facility and shall reimburse City for any increase in real property or possessory interest taxes levied against the Property as a result of the improvements constructed by Licensee on the Licensed Area only for so long as this License has not expired of its own terms or is not terminated by either party. City shall provide prompt and timely notice of any tax or assessment for which Licensee is liable within forty-five (45) days of City’s receipt. Licensee shall have the right to challenge any tax or assessment and City shall cooperate with Licensee regarding such challenge.

Section 30. Estoppel Certificates. Each party agrees to furnish to the other, within ten (10) business days after request, such truthful, customary and reasonable estoppel information as the other may reasonably request.

Section 31. Representatives. Either party hereto that is represented in this transaction by a broker, agent or commission salesperson (a "Representative") shall be fully and exclusively responsible for the payment of any fee, commission or other compensation owing to such Representative, and shall indemnify and hold the other party harmless from and against any claim to a fee, commission or other compensation asserted by such Representative, including reasonable attorneys' fees and costs incurred in defending such claim.

Section 32. Further Assurances; Cooperation. Each party agrees to reasonable and professional cooperation with the other in executing and delivering any documents (including a Memorandum or short form of License and/or easement agreement) any and all additional papers, documents and other assurances and do any and all acts and things reasonably necessary in connection with the performance of their respective obligations under this Agreement and to carry out the intent of the parties herein. Unless the laws of the state in which the Property is located prohibit the recordation of a memorandum or short form of License, neither party shall record this License, but may record, in lieu thereof, the aforementioned Memorandum or short form of License. In the event of a recordation prohibition described above, either party may record this License.

Section 33. Time. Time is of the essence of this License.

Section 34. Incorporation of Recitals. All of the recitals hereof are incorporated by this reference and are made a part hereof as though set forth at length herein.

Section 35. Survival of Terms. All terms that by their nature should survive termination of this License shall survive, including but not limited to payment of amounts owed and indemnification obligations.

Section 36. The following exhibits are incorporated in this License:

Exhibit A Property- Legal Description
Exhibit B Description and Depiction of Licensed Area and Communications Facility
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Arroyo Grande Site Name: RESERVOIR 2
Licensee Site Name:

Licensee Site No.: JN45XGO98E
Section 37. Binding Authority/Authorized Representatives. Each of the parties represents and warrants that it has the full right, power, legal capacity, and authority to enter into and perform its obligations hereunder and that those obligations will be binding upon that party without the approval or consent of any other person or entity. Each person executing this License represents and warrants he/she has been duly authorized to execute the same.

Section 38. Termination of Original Lease. City and Licensee acknowledge and agree that the Original Lease shall terminate effective as of 11:59 pm local time on the day immediately prior to the Effective Date of this License ("Original Lease Termination Date") as if such date were originally stated to be the termination date of the Original Lease and shall thereafter be replaced in its entirety by this Lease. The termination of the Original Lease shall be effective without further documentation. Any rental payments received by City pursuant to the Original Lease for periods following the Original Lease Termination Date will be applied as a credit against the License Fee due and owing pursuant to this Lease during the Term on a prorated basis.

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IN WITNESS WHEREOF, the parties hereto have executed this License as of latter of the signatures below.
“City”:

CITY OF ARROYO GRANDE
By: _____________________________
Title: City Manager
Date: _____________________________
“Licensee”:

T-Mobile West LLC
By: _____________________________
Title: _____________________________
Date: _____________________________
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Exhibit A Property- Legal Description
[Attached]
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Exhibit B Description and Depiction of Licensed Area and Communications Facility • [Attached]
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T-1

TITLE SHEET

VICINITY MAP

PROJECT AREA
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
SV80566A
SN45XC098-NORTH ARROYO GRANDE
0 ZONING
(LEASE EXHIBIT)
Stick Together
T-1
SITE NUMBER: SITE NAME: SITE TYPE:

CITY:COUNTY:JURISDICTION:

GENERAL LOCATION MAP
SV80566ASN45XC098-NORTH ARROYO GRANDEMONOPINE

ARROYO GRANDESAN LUIS OBISPO

PROJECT TEAM DRAWING INDEX
T-1A-1

TITLE SHEETEXISTING OVERALL SITE PLAN
A-2 EXISTING EQUIPMENT AND ANTENNA LAYOUT PLANS A-3 EXISTING ELEVATIONS I

CODE COMPLIANCE

ACCESSIBILITY REQUIREMENTS

LEASE EXHIBIT

CITY OF ARROYO GRANDE

DRIVING DIRECTION
A-4 EXISTING ELEVATIONS II
SAC/ZONING/PERMITTING:

PROJECT SUMMARY
SITE ADDRESS:PROPERTY OWNER CONTACT:

APPLICANT:

BUILDING SUMMARY

LEGAL DESCRIPTION

PROJECT DESCRIPTION

PRINT NAME SIGNATURE DATE

APPROVAL

UTILITY PURVEYOR

LATITUDE / LONGITUDE

PROJECT AREA
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1 A-1

EXISTING OVERALL

SITE PLAN

EXISTING OVERALL SITE PLAN
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
SV80566A
SN45XC098-NORTH ARROYO GRANDE
0 ZONING
(LEASE EXHIBIT)
Stick Together
A-1
N
APN: 077-061-016

H I L L C R E S T D R

M O N T E G O S T R E E T

H I L L C R E S T D R

S I E R R A D R

P R I V A T E R D
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A-2

EXISTING EQUIPMENT AND

ANTENNA LAYOUT PLANS
EXISTING ANTENNA LAYOUT PLAN 2
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
SV80566A
SN45XC098-NORTH ARROYO GRANDE
0 ZONING
(LEASE EXHIBIT)
Stick Together
A-2
N
EXISTING EQUIPMENT LAYOUT PLAN 1
N
TMO Signatory Level:L04/L05
NLG-104693

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A-3

EXISTING ELEVATIONS I
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
SV80566A
SN45XC098-NORTH ARROYO GRANDE
0 ZONING
(LEASE EXHIBIT)
Stick Together
EXISTING EAST ELEVATION 2
A-3
EXISTING NORTH ELEVATION 1
TMO Signatory Level:L04/L05
NLG-104693

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A-4

EXISTING ELEVATIONS II
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
655 N. CENTRAL AVE., #1520
GLENDALE, CA 91203
OFFICE: (818) 840-0808 FAX: (818) 840-0708
SV80566A
SN45XC098-NORTH ARROYO GRANDE
0 ZONING
(LEASE EXHIBIT)
Stick Together
EXISTING WEST ELEVATION 2
A-4
EXISTING SOUTH ELEVATION 1
TMO Signatory Level:L04/L05
NLG-104693

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Item 9.e.

MEMORANDUM
TO: City Council
FROM: Jessica Matson, Director of Legislative & Information Services/ City Clerk
SUBJECT: Resolutions for the 2026 General Municipal Election for the Election of Certain Officers of the City
DATE: June 9, 2026
RECOMMENDATION:
1) Adopt a Resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 3, 2026, for the election of certain officers as required by the provisions of the laws of the State of California relating to General Law cities; 2) Adopt a Resolution requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 3, 2026, with the Statewide General Election to be held on the same date pursuant to Section 10403 of the Elections Code; and
3) Adopt a Resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 3, 2026.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

Funding for the November 2026 General Municipal Election has been included in the Fiscal Year 2026-27 Mid-Cycle Budget Update in the amount of $80,000, based on the estimate received from the San Luis Obispo County Clerk’s office.

BACKGROUND:

On October 2019, the City Council adopted Resolution No. 4949 declaring its intent to transition from at-large to district-based elections by November 2022. In 2022, after a series of public hearings and workshops, the City Council adopted Ordinance 713 (Attachment 4) establishing a by-district election system and created district boundaries.

In November 2022, electors in Districts 1 and 4 voted for a City Councilmember from their district. In November 2024, electors in Districts 2 and 3 voted for a City Councilmember from their district. The Mayor continues to be elected by registered voters of the entire City (at-large).

Page 69 of 430 ends

Item 9.e.

City Council
Resolutions for the 2026 General Municipal Election for the Election of Certain Officers of the City
June 9, 2026

Page 2 ends

State law establishes the dates when general law cities conduct municipal elections for the purpose of electing members of the City Council. The office of Council Member is a four-year term, with terms expiring at staggered intervals (i.e., terms of office for two members of the City Council are scheduled to expire every two years). The office of Mayor is a two-year term pursuant to a voter-approved measure adopted in 1982. The California Elections Code establishes procedures and requirements for conducting a General Municipal Election. As the first step in the election process, certain Resolutions must be adopted by the City Council.

ANALYSIS OF ISSUES:

Pursuant to Arroyo Grande Municipal Code Section 1.08.0101, the City will conduct a General Municipal Election on the same day as, and consolidated with, the Statewide General Election. The Statewide General Election is held on the first Tuesday after the first Monday in November in even numbered years. This year, the date of the Statewide General Election is Tuesday, November 3, 2026. The request for consolidation must be submitted to the County Board of Supervisors no later than June 16, 2026.

By consolidating the election with other jurisdictions in the County, costs to the City to conduct the election are substantially reduced. Following the election, the County invoices the City for its proportional share of the costs. The estimated cost of $80,000 for the 2026 General Election has been included in the FY 2026-27 Budget.

The printing of candidate statements in the sample ballot booklet is also included in the City’s election costs. Since 2008, the City has sought full cost recovery from the candidate for the publication of a candidate statement pursuant to State law, since the publication of a candidate statement is optional and not a requirement. This is a consistent practice among most California cities. It is recommended that the word count limit be set at 200 words per statement, consistent with previous elections. The City requires an initial deposit at the time a candidate files his/her nomination papers. Candidates are then either invoiced or sent a refund after the County calculates the share of costs for printing/mailing of the sample ballot booklet for each agency and candidate.

In 2026, the terms of District 1 Council Member Kate Secrest, District 4 Council Member Jim Guthrie, and Mayor Caren Ray Russom are expiring.

The nomination period for candidates running for a seat on the City Council for the District 1 City Council Member position, the District 4 City Council Member position, and for Mayor is Monday, July 13, 2026, through Friday, August 7, 2026. If an incumbent does not file nomination papers and qualify by the close of the nomination period, the filing period is extended for non-incumbents for five (5) days pursuant to State law. All candidates for

1https://library.municode.com/ca/arroyo_grande/codes/code_of_ordinances?nodeId=COOR_TIT1GEPR_ CH1.08MUEL_1.08.010DAGEMUEL

Page 70 of 430 ends

Item 9.e.

City Council
Resolutions for the 2026 General Municipal Election for the Election of Certain Officers of the City
June 9, 2026

Page 3 ends

Mayor must live and be registered to vote in the city of Arroyo Grande. Candidates for the District 1 City Council Member and District 4 City Council Member seats must live and be registered to vote in the districts for which they are nominated. For candidates who own or lease property both inside and outside the City/District, candidates are advised to consult State law to determine whether they have residency to run for the particular City office they seek.

ALTERNATIVES:

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

1. Adopt the Resolutions pertaining to the 2026 Municipal Election; or

2. Provide other direction to staff.

ADVANTAGES:

Adoption of the proposed Resolutions will meet the provisions required by the California Elections Code for calling and giving notice of a General Municipal Election, requesting the services of the County to conduct a consolidated election, and setting forth regulations for candidates pertaining to the filing of candidate statements.

DISADVANTAGES:

There are no identified disadvantages related to adoption of the proposed Resolutions, as they are required by State law in order to conduct a Consolidated General Municipal Election in the City.

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. A Notice of Election will be published in the newspaper pursuant to the timeline prescribed by the Elections Code.

ATTACHMENTS:

1. Resolution – Calling and Giving Notice of the November 3, 2026 Election

2. Resolution – Consolidation with the County

3. Resolution – Regulations for Candidate Statements

4. Ordinance 713

Page 71 of 430 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE, CALIFORNIA, CALLING FOR THE HOLDING OF A

GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS

AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE

OF CALIFORNIA RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to General Law Cities in the State of California, a General Municipal Election shall be held on November 3, 2026, for the election of Municipal Officers.

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

1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Arroyo Grande, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing an at-large Mayor for the full term of two years, one Member of the City Council for District 1 for the full term of four years, and one Member of the City Council for District 4 for the full term of four years.

2. That the ballots to be used at the election shall be in form and content as required by law.

3. That the City Clerk is authorized, instructed, and directed to coordinate with the County of San Luis Obispo County Clerk-Recorder to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

4. The vote center locations and hours of operations, ballot drop box locations and hours of operations, vote-by-mail procedures and timing, and election officers, and all other persons and procedures for the General Municipal Election shall be the same as those utilized by the County of San Luis Obispo and in compliance with the Elections Code of the State of California.

5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in the time, form, and manner as required by law.

Page 72 of 430 ends

RESOLUTION NO.

PAGE 2

7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of San Luis Obispo County Clerk-Recorder, the City Council, in accordance with Election Code Section 15651(a), shall set a date, time, and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.

8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

9. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

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 June, 2026.

Page 73 of 430 ends

RESOLUTION NO.

PAGE 3
____________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
____________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
____________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
____________________________________

ISAAC ROSEN, CITY ATTORNEY

Page 74 of 430 ends

ATTACHMENT 2
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO

GRANDE, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 3, 2026, WITH THE STATEWIDE GENERAL ELECTION
TO BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403

OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Arroyo Grande called a General Municipal Election to be held on Tuesday, November 3, 2026, for the purpose of the election of an at-large Mayor, one (1) Member of the City Council for District 1, and one (1) Member of the City Council for District 4; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the County Elections Division of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

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

1. That pursuant to the requirements of Section 10403 of the Election Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of the election of an at-large Mayor, one (1) Member of the City Council for District 1, and one (1) Member of the City Council for District 4.

2. That the Elections Division of the County Clerk-Recorder’s Office is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the Statewide election.

3. That the Board of Supervisors is requested to issue instructions to the Elections Division of the County Clerk-Recorder’s Office to take any and all steps necessary for the holding of the consolidated election.

4. That the City of Arroyo Grande recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such additional costs.

Page 75 of 430 ends

RESOLUTION NO.

PAGE 2

5. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the Elections Division of the San Luis Obispo County Clerk-Recorder’s Office.

6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

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 June, 2026.

Page 76 of 430 ends

RESOLUTION NO.

PAGE 3
__________________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
__________________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
__________________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
__________________________________________

ISAAC ROSEN, CITY ATTORNEY

Page 77 of 430 ends

ATTACHMENT 3
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE, CALIFORNIA, ADOPTING

REGULATIONS FOR CANDIDATES FOR ELECTIVE

OFFICE PERTAINING TO CANDIDATE STATEMENTS

SUBMITTED TO THE VOTERS AT AN ELECTION TO BE
HELD ON TUESDAY, NOVEMBER 3, 2026
WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidates statement.

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

1. That the following regulations are hereby adopted regarding candidate statements for candidates for elective office in the City of Arroyo Grande:

A. GENERAL PROVISIONS. That pursuant to Sections 13307 and 13308 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Arroyo Grande on November 3, 2026, may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. In addition, the statement shall be limited to a recitation of the candidate’s own personal background and qualifications and shall not in any way make reference to other candidates for that office or to another candidate’s qualifications, character, or activities. The statement shall be filed in typewritten form in the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

B. PAYMENT.
i) The candidate shall be required to pay for the cost of printing the candidates statement in English in the voter’s pamphlet.
ii) The candidate shall be required to pay for the cost of translating and printing the candidate’s statement in a foreign language requested by the candidate in the voter’s pamphlet.

Page 78 of 430 ends

RESOLUTION NO.

PAGE 2
iii) The San Luis Obispo County Clerk-Recorder’s Office shall estimate the total cost of printing, handling, translating, and mailing the candidates statements filed pursuant to this Section, and the City Clerk shall require each candidate filing a statement to pay in advance to the City his or her estimated pro rata share as a condition of having his or her statement included in the voter’s pamphlet. The estimate is just an approximation of the actual costs that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements.

Accordingly, the City Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid, depending on the final actual cost. In the event of underpayment, the Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within thirty (30) days of the receipt of the final invoice from the County.

C. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the sample ballot package.

D. All translations shall be provided by professionally-certified translators.

E. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

2. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued.

3. That this Resolution shall apply only to the election to be held on November 3, 2026, and shall then be repealed.

4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

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 on this 9 th day of June, 2026.

Page 79 of 430 ends

RESOLUTION NO.

PAGE 3
_____________________________________

CAREN RAY RUSSOM, MAYOR
ATTEST:
_____________________________________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
_____________________________________

ISAAC ROSEN, CITY ATTORNEY

Page 80 of 430 ends

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Page 85 of 430 ends

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Page 87 of 430 ends

Item 9.f.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: Agreement for Consultant Services with Townsend Public Affairs, Inc. for Legislative Advocacy and Grant Writing Services
DATE: June 9, 2026
RECOMMENDATION:
1) Adopt a Resolution authorizing the City Manager to execute a three-year Professional Services Agreement with Townsend Public Affairs, Inc. (TPA) for Legislative Advocacy and Grant Writing Services, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Determine that approving the Agreement is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The cost proposal from TPA included an annual budget of $64,800. In FY 2026-27, there is $65,000 allocated in the City Manager Contractual Services budget line item for Legislative Advocacy and Grant Writing. The intent is that the firm will help the City apply for and receive grant funding that would offset the annual cost of the legislative advocacy and grant writing services.

BACKGROUND:

As part of the Fiscal Year 2025-27 budget, the City Council allocated funding for the procurement of consultant services to assist the City with legislative advocacy and grant writing services, a first for the City. On April 1, 2026, the City issued a request for proposals (RFP) for legislative advocacy and grant writing services. In response to that RFP, the City received 2 proposals. The proposal from TPA was ranked first by an internal group of staff raters due to consistency with the RFP, budget, and prior customer examples.

Page 88 of 430 ends

Item 9.f.

City Council
Agreement for Consultant Services with Townsend Public Affairs, Inc. for Legislative Advocacy and Grant Writing Services
June 9, 2026

Page 2 ends

TPA has secured more than $3.3 billion in competitive grants and appropriations and has successfully advanced more than 165 pieces of legislation on behalf of its clients.

ANALYSIS OF ISSUES:

Legislation
TPA will work in collaboration with the City Manager’s Office, the City Council, and department leadership to establish a clear annual Legislative Platform and work plan identifying priority initiatives, policy positions, funding targets, and measurable milestones.

TPA’s advocacy methodology emphasizes continuous policy monitoring paired with targeted engagement. The team will track and analyze administrative actions, legislation, appropriations developments, and regulatory activity affecting municipal operations, providing strategic guidance on recommended City positions, including support, opposition, or proposed amendments when appropriate. TPA will advocate directly with Members of Congress, the State Legislature, the Governor’s Office, and federal and state agencies to advance the City’s interests and elevate priority projects. TPA will also develop advocacy materials such as briefing papers, talking points, and background memoranda, and will coordinate structured advocacy opportunities in Sacramento and Washington, DC, designed to strengthen relationships with stakeholders and advance funding opportunities for the City’s key initiatives.

Grants and Community Project Funding Requests
Consistent with the City’s emphasis on funding identification and grant support, TPA will integrate funding strategies into all advocacy efforts. TPA will continuously identify relevant grant programs, State Budget priorities, Federal Community Project Funding, and emerging funding initiatives aligned with the City’s infrastructure, public safety, and community development priorities. TPA will provide technical assistance throughout the grant lifecycle, including strategic positioning, application development support, and coordination with agency staff to improve competitiveness.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Modify as appropriate and approve the Agreement;

3. Do not approve the Agreement; or

4. Provide other direction to staff.

ADVANTAGES:

Legislative advocacy and grant writing services help cities secure external funding, monitor legislation that may impact municipal operations, and advance local priorities at the state and federal level. These services provide additional staff capacity and specialized expertise in identifying grant opportunities, preparing competitive

Page 89 of 430 ends

Item 9.f.

City Council
Agreement for Consultant Services with Townsend Public Affairs, Inc. for Legislative Advocacy and Grant Writing Services
June 9, 2026

Page 3 ends

applications, and representing the City before agencies and legislators, which can improve funding success and support strategic city initiatives.

DISADVANTAGES:

There are no disadvantages identified.

ENVIRONMENTAL REVIEW:

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

PUBLIC NOTIFICATION AND COMMENTS:

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

ATTACHMENTS:

1. Resolution
Exhibit A - Professional Services Agreement with Townsend Public Affairs, Inc.

Page 90 of 430 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ARROYO GRANDE AUTHORIZING THE CITY MANAGER

TO EXECUTE A THREE-YEAR PROFESSIONAL

SERVICES AGREEMENT WITH TOWNSEND PUBLIC

AFFAIRS, INC FOR LEGISLATIVE ADVOCACY AND

GRANT WRITING SERVICES
WHEREAS, staff issued a formal Request for Proposals for Legislative Advocacy and Grant Writing Services on April 1, 2026, which closed on April 22, 2026, and received two (2) responses; and
WHEREAS, Townsend Public Affairs was ranked highest by an internal group of staff; and
WHEREAS, the agreement includes an annual amount not-to-exceed $64,800 per fiscal year, subject to annual budget appropriation by the City Council; and WHEREAS, approval of the three-year agreement 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); and
WHEREAS, the three-year agreement term for FY 2026-29 will be incorporated into future budget development and remains subject to annual budget appropriation by the City Council.

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

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

2. The City Manager is authorized to execute the Professional Services Agreement (Exhibit A) with Townsend Public Affairs, Inc. to provide legislative advocacy and grant writing services for a three-year term, subject to annual budget appropriation as to form, in substantially final form, subject to any minor, technical, or nonsubstantive changes as approved by the City Manager in consultation with the City Attorney.

Page 91 of 430 ends

RESOLUTION NO.

PAGE 2
On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 9
th day of June, 2026.

Page 92 of 430 ends

RESOLUTION NO.

PAGE 3

CAREN RAY RUSSOM, MAYOR
ATTEST:

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:

ISAAC ROSEN, CITY ATTORNEY

Page 93 of 430 ends

RESOLUTION NO.

PAGE 4

EXHIBIT A

PROFESSIONAL SERVICES AGREEMENT

Page 94 of 430 ends

65501.00001\44397179.1
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 9
th day of June, 2026, 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 Townsend Public Affairs, Inc., a California corporation, with its principal place of business at 925 L Street, Suite 1404, Sacramento, CA 95814 ("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 legislative advocacy and grant writing 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 legislative and grant writing services ("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 June 9th, 2026 meeting.

TERMS.

2.4 Scope of Services and Term.

2.4.1 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 legislative advocacy and grant writing consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

2.4.2 Term. The term of this Agreement shall be from July 1, 2026, to June 30, 2029, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to extend this Agreement for no more than two (2) additional one-year terms, and the City Manager is authorized to approve and execute such amendment to the term of this Agreement, provided that the total compensation for each fiscal year shall not exceed sixty-four

Page 95 of 430 ends

65501.00001\44397179.1
BB&K (2023) -2- PROFESSIONAL SERVICES AGREEMENT
thousand eight hundred dollars ($64,800). Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

2.5 Compensation.

2.5.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed sixty-four thousand eight hundred dollars ($64,800) each fiscal year, and shall not exceed one hundred and ninety-four thousand four hundred dollars ($194,400) over the Term, 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.

2.5.2 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.

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

2.5.4 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.

2.6 Responsibilities of Consultant.

2.6.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

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

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding,

Page 96 of 430 ends

65501.00001\44397179.1
BB&K (2023) -3- PROFESSIONAL SERVICES AGREEMENT
unemployment insurance, disability insurance, and workers' compensation insurance.

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

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

2.6.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Alex Gibbs, Director, and Ryan McCarthy, Associate.

2.6.5 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.

2.6.6 Consultant's Representative. Consultant hereby designates Alex Gibbs, Director, and Ryan McCarthy, Associate 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.

2.6.7 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.

2.6.8 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

Page 97 of 430 ends

65501.00001\44397179.1
BB&K (2023) -4- PROFESSIONAL SERVICES AGREEMENT
approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

2.6.9 Period of Performance.

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

2.6.9.2 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.

2.6.9.3 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.

2.6.10 Laws and Regulations; Employee/Labor Certification.

2.6.10.1 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

Page 98 of 430 ends

65501.00001\44397179.1
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.

2.6.10.2 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.

2.6.10.3 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.

2.6.10.4 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.

2.6.10.5 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.

2.6.10.6 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.

2.6.11 Insurance.

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2.6.11.1 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.

2.6.11.2 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.

2.6.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude

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"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.

2.6.11.4 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.

2.6.11.5 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.

2.6.11.6 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.

2.6.11.7 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

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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.

2.6.11.8 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.

2.6.11.9 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.

2.6.11.10 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.

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

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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.

2.6.11.12 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.

2.7 Labor Code Requirements.

2.7.1 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.

2.7.2 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.

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2.7.3 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.

2.7.4 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.

2.8 Termination of Agreement.

2.8.1.1 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.

2.8.1.2 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.

2.8.1.3 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.

2.9 Indemnification.

2.9.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any negligent 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

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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.

2.9.2 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.

2.10 General Provisions.

2.10.1 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.

2.10.2 Independent Contractors and Subcontracting.

2.10.2.1 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.

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

2.10.3 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: Townsend Public Affairs, Inc.
1401 Dove Street, Suite 430

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Newport Beach, CA 9660
President: Christopher Townsend
[email protected]
Secretary: Christopher Townsend
[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.

2.10.4 Ownership of Materials and Confidentiality.

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

2.10.4.2 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.

2.10.4.3 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

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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.

2.10.4.4 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.

2.10.4.5 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.

2.10.5 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.

2.10.6 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.

2.10.7 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.

2.10.8 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

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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.

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

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

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

2.10.12 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.

2.10.13 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.

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

2.10.15 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.

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

2.10.17 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.

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2.10.18 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.

2.10.19 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.

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

2.10.21 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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BB&K (2023) -16- PROFESSIONAL SERVICES AGREEMENT

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ARROYO GRANDE AND
Townsend Public Affairs, 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 Townsend Public Affairs, Inc.

By:

Its: President and Secretary
Printed Name: Christopher Townsend
Approved By:

Matthew Downing, City Manager
Approved as to Form:

Best Best & Krieger LLP
Isaac Rosen, City Attorney
_____________________________________
Scott Shapses, Assistant City Attorney
Attested By:

Jessica Matson, City Clerk

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BB&K (2020) Exhibit “A”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "A"

SCOPE OF SERVICES

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BB&K (2020) Exhibit “A”
-2 PROFESSIONAL SERVICES AGREEMENT

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BB&K (2020) Exhibit “A”
-3 PROFESSIONAL SERVICES AGREEMENT

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BB&K (2020) Exhibit “A-I1” PROFESSIONAL SERVICES AGREEMENT

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BB&K (2020) Exhibit “A-I2” PROFESSIONAL SERVICES AGREEMENT

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BB&K (2020) Exhibit “A-I3” PROFESSIONAL SERVICES AGREEMENT

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BB&K (2020) Exhibit “B”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "B"

SCHEDULE OF SERVICES

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65501.00001\44397179.1 BB&K (2020) Exhibit “C”-1 PROFESSIONAL SERVICES AGREEMENT EXHIBIT "C"

COMPENSATION

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Item 9.g.

MEMORANDUM
TO: City Council
FROM: David Culver, Chief of Police
BY: Jeremy Burns, Sergeant
SUBJECT: Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services
DATE: June 9, 2026
RECOMMENDATION:
1) Approve a Memorandum of Understanding between the City of Arroyo Grande and the Lucia Mar Unified School District (LMUSD) to share the cost of salary and benefits for one School Resource Officer (SRO) position in Fiscal Year (FY) 2026-27; and 2) Find that approving the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The cost of the School Resource Officer position is approximately $197,300 for Fiscal Year (FY) 2026-27. This agreement shares the cost of the salary and benefits associated with the officer between the City and Lucia Mar Unified School District (LMUSD). The City will receive fifty percent (50%) of the cost from LMUSD; totaling $98,650. These funds were included as estimated revenues in the City’s proposed FY 2026-27 Budget.

BACKGROUND:

The Arroyo Grande Police Department (AGPD) has been providing School Resource Officer (SRO) services to the Lucia Mar Unified School District (LMUSD) since the early 1990s. The SRO Program is a collaborative effort between the AGPD and the LMUSD with the goal of reducing crime, drug abuse, violence, and providing a safe school environment. The SRO is a full-time police officer whose primary function is to address law enforcement concerns at their respective schools. The AGPD and LMUSD work closely in selecting the SRO by identifying specific traits that are essential to working in a school environment. The SRO program utilizes the SRO Triad concept as set forth by the National Association of School Resource Officers (NASRO) (Attachment 2). The SRO

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Item 9.g.

City Council
Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services June 9, 2026

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Triad concept generally means that the officers assigned to the SRO program are law enforcement officers, counselors, and teachers. The SRO works closely with school administrators and officials to develop positive relationships with the community, students, and parents. While the position is housed at and primarily assigned to Arroyo Grande High School, the SRO is responsible for responding to requests from Paulding Middle School and Ocean View and Harloe Elementary schools. The SRO interacts with students of various ages and backgrounds, often serving in a mentorship role.

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

ANALYSIS OF ISSUES:

The LMUSD has requested that SRO services be provided for the 2026-2027 school year.

The term of the agreement begins July 1, 2026, and ends June 30, 2027. This agreement is reviewed annually.

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

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

The MOU has been drafted so that AGPD and LMUSD share the costs of the SRO, and LMUSD pays the additional overtime costs at the rates set forth in Exhibit A. The cost of the MOU to LMUSD will be $98,650, except that LMUSD will pay for overtime work at rates which are included in Exhibit A attached to the MOU (Attachment 1). AGPD, specifically the Chief of Police, is responsible for hiring the SRO, but may solicit input from LMUSD to assist in their selection. Further, AGPD will collaborate with LMUSD in the implementation of the SRO program. For example, the SRO will coordinate with the school administration in order to provide lessons regarding police services and general citizenship. The SRO will primarily respond to incidents or conduct investigations regarding calls for service.

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Item 9.g.

City Council
Memorandum of Understanding Between the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services June 9, 2026

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In the LMUSD 2025-2026 school year (specifically July 1, 2025, to May 22, 2026), the SRO responded to (322) calls for service and completed (273) police reports. AGPD has developed guidelines for the SRO with a multifaceted approach to providing services, given the many health and safety requirements set forth by the State. The LMUSD has agreed to partner with AGPD for another year of this program, supporting the need to provide this valuable resource to the students, staff, and the community.

ALTERNATIVES:

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

1. Staff’s recommendation;

2. Do not adopt the Agreement; or

3. Provide other direction to staff.

ADVANTAGES:

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

DISADVANTAGES:

Non-approval will result in the Police Department not dedicating an officer to schools within the city on a full-time basis.

ENVIRONMENTAL REVIEW:

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

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

ATTACHMENTS:

1. Proposed School Resource Officer Memorandum of Understanding

2. NASRO Best Practices

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SCHOOL RESOURCE OFFICER

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

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

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

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

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

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

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

ATTACHMENT 1

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

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

C. Description of General Duties

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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5. Access to and encouragement of classroom participation.

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

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

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

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

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

F. Desired Outcome

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

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

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

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

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

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

This shall be limited to information that directly relates to and· contributes to the safety of the school environment. The SRO shall not make any official document, police report, or record

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available to the school administration or its staff that is not legally permissible nor shall the school administration or its staff make any official document, report or record available to the SRO that is not likewise legally permissible.

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

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

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

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

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

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

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

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

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

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

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

The SRO may accrue overtime when present at certain school events, including, but not limited to, home football games, Winter Formal Dance, and Prom. If the presence of the SRO at a school-related special event outside normal school hours is reasonably appropriate, the

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SRO should make reasonable efforts to adjust his/her work schedule to eliminate any potential overtime expense associated with the special event. The Arroyo Grande Police Department cannot guarantee that a schedule modification will eliminate a need for the SRO to accrue overtime hours, and the Arroyo Grande Police Department will prioritize safety at school functions in all cases.

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

N. Indemnity

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

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

O. Term
The term of this Memorandum of Understanding shall be for one year from the effective date, which shall be July 1, 2026. The Agreement may be extended for up to four additional one-year terms, upon mutual written consent of both parties.

P. Cost
The total cost of this Agreement shall be 98,650, except that the Lucia Mar Unified School District shall incur additional costs for overtime work of the SRO at the rates set forth in the attached Exhibit “A.”

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Q. Miscellaneous

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

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

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

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

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

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EXHIBIT A
Total cost of Arroyo Grande Police Department and Lucia Mar Unified School District SRO: $197,300 – this amount split 50/50 means that each party shall be responsible for $98,650.

Overtime will be calculated as follows:

Position Annual Rate Hourly Rate Overtime Rate
School Resource Officer 197,300 94.86 142.28

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The Standards and Best
Practices presented here are
separated into two
classifications: Mandatory (M)
and Recommended (R) to
identify the importance of
each Standard and Best
Practice.

DOCUMENT MAY NOT BE REPRODUCED OR

DISTRIBUTED IN ANY FORM OR BY ANY

MEANS WITHOUT THE EXPRESSED WRITTEN
PERMISSION OF NASRO.

ATTACHMENT 2

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1.0 PURPOSE OF THE STANDARDS

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

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

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

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

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

1. Safety first in all aspects of the operation.

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

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

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

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

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

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

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

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01.01.00 Definition 5

01.01.02 Purpose 5

01.01.03 Knowledge and Support 5

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

02.01.00 Selection Process 9

02.01.02 Experience 9

02.01.03 Number of SROs Selected 9

02.01.04 School Climate 10

02.01.05 Willingness in Developing Youth 10

02.01.06 Communication Skills 10

02.01.07 Probationary Period 10
Section 3 Training 11-13

03.01.00 Training Standards 11

03.01.01 Importance 11

03.02.01 Basic SRO Course 12

03.02.02 The TRIAD Approach 12

03.02.03 School Administration Policies & Procedures 12

03.03.00 Advanced SRO Course 13

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

04.01.01 Definition 14

04.01.02 Defining Role of School Admin. and the SRO 14

04.01.03 The Administration’s Role in SRO Selection 15

04.01.04 The Administration’s Role in SRO Evaluation 15

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

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

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01.01.00 Administrative Standards Compliance

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

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

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

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

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

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

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

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Arroyo Grande City CouncilJune 9, 2026

Arroyo Grande City Council
June 9, 2026