Agenda packet — Grover Beach City Council, February 28, 2022

AGENDA

GROVER BEACH CITY COUNCIL
MONDAY, FEBRUARY 28, 2022, 6:00 PM
Next Resolution No .22-06
Next Ordinance No. 22-00
Given public health conditions and consistent with Assembly Bill 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, City Council meetings will be held by teleconference only until further notice.

CALL TO ORDER

MOMENT OF SILENCE

FLAG SALUTE
ROLL CALL Council Members Anna Miller, Robert Robert, Daniel Rushing, Mayor Pro Tem Karen Bright, and Mayor Jeff Lee

CLOSED SESSION ANNOUNCEMENTS
On Tuesday, February 15, 2022 at 10:08 p.m., the Council met in Closed Session regarding the following item:

A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
In accordance with subsection (d) of Section 54956.9 of the Government Code City of Grover Beach v. Albert Bruce et.all., 21CV0452
At 10:22 p.m. they reconvened in open session with all Council Members present and announced that there were no reportable actions taken.

AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should by motion adopt the agenda as presented or as revised.

Meetings can be viewed on Channel 20 and are live streamed on the City’s website via www.slospan.org. Members of the public may provide public comment during the meeting by calling (805) 321-6639 to provide public comment via phone (the phone line will open just prior to the start of the meeting at 6:00 PM) or written public comments can be submitted via email to [email protected] prior to the Council meeting no later than 3:00 PM. If submitting written comments in advance of the meeting, please note the agenda item. Written comments will be read out loud during the City Council meeting on the appropriate agenda item subject to the customary 3-minute time limit.

Agenda: Grover Beach City Council Meeting Page 2
Monday, February 28, 2022

CEREMONIAL CALENDAR
None

PRESENTATIONS
None

PUBLIC COMMUNICATIONS
During this time, the Council will allow up to 15 minutes for Public Communication with additional communication, if necessary, allowed after the Regular Business Items. Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda.

CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.

1. Treasurer’s Report for the Period January 1, through January 31, 2022. (Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE

2. Treasurer’s Report for the 2017 Streets Bond Account - $15,000,000 (Measure K14:

Grover Beach Street Rehabilitation; Safety Improvement Bond Measure) for the Period January 1, through January 31, 2022.
(Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE

3. Minutes of the City Council Meeting on Tuesday, February 15, 2022. (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

4. COVID-19 Response Update – City Manager Bronson
(Recommended Action: Receive an update on the countywide and City response to the COVID-19 pandemic.)

VOICE VOTE

PUBLIC HEARING

5. Fourth Public Hearing on the Creation of a District-Based City Council Election System and Selection of a Final District Map – Deputy City Manager Eriksson (Recommended Action: 1. Conduct a public hearing to consider focus draft maps selected by the Council at the January 24, 2022, public hearing; and Select a final district map.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, February 28, 2022

6. Master Fee Schedule Amendment to Update Building Permit Fees – Community Development Director Buckingham
(Recommended Action: Adopt the Resolution amending the Master Fee Schedule to update building permit fees.)

ROLL CALL VOTE

REGULAR BUSINESS

7. FY 2021-22 Mid-Year Budget Review and General Fund Forecast – Administrative Services Director Purcell
(Recommended Action: Receive information the FY 2021-22 Mid-Year Budget Review including the City’s American Rescue Plan Act and the updated General Fund Forecast and provide input and direction to staff.)

PUBLIC COMMUNICATIONS
Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda.

COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.

Five Cities Fire Joint Powers Authority Jeff Lee (Alt: Daniel Rushing) South SLO County Sanitation District (SSLOCSD) Jeff Lee (Alt: Karen Bright) Air Pollution Control District (APCD) Karen Bright (Alt: Anna Miller) SLO Council of Governments / SLO Regional Transit Authority Karen Bright (Alt: Anna Miller) (SLOCOG / SLORTA)
South County Transit Committee Karen Bright (Alt: Anna Miller) Homeless Services Oversight Council (HSOC) Anna Miller (Alt: Jeff Lee) REACH SLO Advisory Commission Anna Miller (Alt: Robert Robert) Integrated Waste Management Authority (IWMA) Robert Robert (Atl: Karen Bright) SLO County Water Resources Advisory Committee (WRAC) Robert Robert (Alt: Staff) South County Chambers of Commerce Daniel Rushing (Alt: Karen Bright) Visit SLO CAL Advisory Committee Daniel Rushing (Alt: Anna Miller) Zone Three Advisory Committee Daniel Rushing (Atl: Karen Bright) League of California Cities - Policy Committee Reports and Other League Matters Transportation, Communication & Public Works Policy Committee Jeff Lee

COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.

Agenda: Grover Beach City Council Meeting Page 4
Monday, February 28, 2022
CITY MANAGER’S REPORTS AND COMMENTS
CITY ATTORNEY’S REPORTS AND COMMENTS

CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:

A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: APN No. 060-542-014
Agency Negotiators: City negotiators will be City Manager, Matt Bronson, Community Development Director Bruce Buckingham,
Negotiating Parties: Unknown
Under Negotiation: Instruction to Negotiators will concern both price and terms of payment.

ADJOURNMENT
* * * * *
Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action. * * * * *
Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours.
* * * * *
Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.
* * * * *
The agenda and staff reports are also available on the City’s website: www.groverbeach.org

CITY OF GROVER BEACH

POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07, revised 02-18-2020) The City Council and staff welcomes and encourages civic participation and debate on issues. The Council values the public’s opinion and in every Council meeting invite and encourages the public to address the Council on any matter of interest. The Council adopted these policies and procedures for appropriate conduct and decorum at Council meetings and establish guidance for public participation during Council meetings.

These policies will foster and provide greater clarity to preserve the intent of open government and maintain a positive environment for public input and City Council decision-making.

1.0 DECORUM AND ORDER – IN GENERAL

1.1 The presiding officer is responsible for the maintenance of order and decorum at all times.

1.2 The presiding officer shall determine all points of order subject to the right of any Council member to appeal to the City Council by majority vote. If any appeal is taken, the question shall be “Shall the decision of the presiding officer be sustained” in which event a majority vote of the Council shall govern and conclusively determine such question of order.

1.3 All Council members, staff members and members of the public should speak respectfully and avoid the use of profanity, vulgarity and slanderous comments. Recognizing that the First Amendment precludes the City Council form prohibiting speakers from speaking based upon the content of their speech, the presiding officer shall use their best efforts, short of enforcement action, to remind and encourage all participating in the meeting to keep their speech respectful towards others and within bounds appropriate for children and persons of sensitivity toward course language as a courtesy to others present or otherwise viewing Council meetings.

2.0 DECORUM AND ORDER – COUNCIL MEMBERS

2.1 Manner of Speaking.

Any Council member desiring to speak shall first address the presiding officer. Upon recognition by the presiding officer, the Council member shall speak only to the question under debate.

2.1(a) Questioning Staff.

A Council member desiring to question the staff should address his question to the City Manager, or, in appropriate cases, the City Clerk or City Attorney, who shall be entitled either to answer the inquiry or to designate some staff member for that purpose. Such a designation may be made at the time of any staff presentation or on the agenda listing for the item.

2.1(b) Interruptions.

Once recognized, a Council member shall not be interrupted while speaking unless called to order by the presiding officer; unless a point of order is raised by another Council member, or unless the speaker chooses to yield to questions from another Council member.

3.0 DECORUM AND ORDER – STAFF

3.1 City Manager Responsibilities
The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.

3.2 Addressing the City Council
Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the presiding officer. All remarks shall be addressed to the presiding officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.

4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC

4.1 Addressing the City Council
Any member of the public desiring to address the City Council or members of the public shall first be recognized by the presiding officer at the appropriate place on the agenda. All remarks shall be addressed to the presiding officer and not to any individual Council Member, City Manager, City Attorney or member of the administrative staff or member of the public.

4.2 Time Limitation for Addressing the City Council
Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the presiding officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the presiding officer, when deemed necessary, for instance when a person is speaking on behalf of a group or has a graphic or slide presentation requiring more time.

4.3 Failure to Yield, Disruptions
Any person who refuses to relinquish the floor after their allotted time or while attending the City Council meeting engages in conduct or speech which disrupts the business of the meeting shall be brought to order and/or removed from the room if the sergeant-at-arms is so directed by the presiding officer.

Disruptive remarks from the audience, stamping of feet, clapping, whistles, yells and similar demonstrations shall not be permitted by the presiding officer who may direct the sergeant-at-arms to remove such offenders from the room.

4.4 Prosecution
Aggravated cases shall be prosecuted on appropriate complaint signed by the presiding officer.

5.0 ENFORCEMENT OF DECORUM

5.1 The Chief of Police or his designee shall be the ex-officio sergeant-at-arms of the City Council. The sergeant-at-arms shall carry out all legal and valid orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in the Council Chamber. Upon instructions from the presiding officer, it shall be the duty of the sergeant-at-arms to remove any disorderly person from the Council Chambers or place the disorderly person under arrest or both.

5.2 As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a person or group of persons so as to render the orderly conduct of such meeting unfeasible or impedes the ability of the Council to hold the meeting, and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.

Agenda Item No. 1
' '

ACCOUNTS PAYABLE
CHECK DATE 01/07/2022
i
Check Name Check Amount Check Date i Invoice Desi:
69594 ABALONE COAST ANALYTICAL INC 2,123.00 01/07/2022 : Coliform P/A, ELAP Fee '
69595 AHA Shoes Inc. DBA TAKKEN'S SHOES 176.17 01/07/2022 I Safety Boots - PW Employee 69596 ALTA Language Services, Inc. 198.00 01/07/2022 ! Alta Inv 15568754 LanguageTest 12-31-2021

ASCAP AMERICAN SOCIETY OF I
69597 COMPOSERS AUTHORS & PUB 390.00 01/07/2022 ! 2022 license renewal. 69598 AT&T 1,933.10 01/07/2022 I City Hall Telephones 10/25/21 - 11/24/21 69599 AT&T 1,957.58 01/07 /20221 City Hall Telephones 11/25/21-12/24/21 !
69600 AUTOSYS LLC 930.00 01/07/2022 16th St Booster Investigation/ Front Street Lift Station Issue 69601 CALPORTLAND COMPANY 1,318.56 01/07/2022, Hauling Fee for cold mix delivery 69602 CARQUEST AUTO PARTS 162.42 01/07/2022' battery change 69603 CHARTER COMMUNICATIONS 715.63 01/07/2022, City Facilities - Internet Charges 12/16/21-1/15/22 69604 City of Santa Maria 1,154.00 01/07/2022 Point Blank Vision AXBIIIA Hi-Lite Vest 69605 CLIFFORD H. CLARK ATTORNEY AT LAW 705.00 01/07/2022 Rent@ 255 N 10th St - Jan 2022 69606 COASTLAND COAST LANDSCAPE 5,100.00 01/07/2022 January Grounds Maintenance - #1365 Mentone Basin 69607 COLLINGS & ASSOCIATES, LLC 250.00 01/07/2022 Collings review of 923 Huber 69608 DATAPROSE LLC 2,050.36 01/07/2022 Northside Utility Billing - Dec 2021 69609 DE LAGE LANDEN 108.74 01/07/2022' Canon/lmageFORMULA DR-G2110 Environmental Systems Research
69610 Institute, Inc. 3,800.00 01/07/202i ArcGIS Online GIS Professional Term License 69611 EXECUTIVE JANITORIAL INC. 1,050.00 01/07/2022 August 2021 Facility services. 69612 FARM SUPPLY COMPANY 394.26 01/07/2022 Round up/ weed impede 69613 Fastenal Company 85.65 01/07/2022 Shovel & N95 Masks -Shop 69614 FERGUSON ENTERPRISES INC. #1350 148.99 01/07/2022. Hydrant Part 69615 FRANK'S LOCK & KEY 125.00 01/07/2022 Repair Exit Device @ PD Lobby Door 69616 Garcia, Cheyenne 80.00 01/07/2022 2430 refund security deposit for 11/27 /2116th St. 69617 GRAINGER 112.04 01/07/2022 Parts for the Shop
69618 Hacienda Gardening 3,350.00 01/07/2022 Power Washing of Gazebo @ Ramona Park Hale, David P - Law Offices of David P.
69619 Hale 14,733.00 01/07/2022 Dec 2021 Attorney Fees
69620 J.B. DEWAR INC. 4,828.94 01/07/2022 Gas bill PD & PW Vehicles 69621 JAY SWIFT 412.57 01/07/2022 Medical reimbursement per retiree contract 69622 MARIA GARCIA 80.00 01/07/2022 2444 Refund security deposit 12/11/21 for 16th St. 69623 Michael K. Nunley & Associates, Inc. 1,151.03 01/07/2022 Urban Water Management Plan. Billing through Jan 1, 2022 69624 MINERS HARDWARE 643.22 01/07/2022 Supplies for City Hall, PD & PW CM for Measure K-14 Street Repair & Rehab Seabright CIP 2295-13. 69625 MNS Engineers, Inc. 38,482.00 01/07/2022 Services for the period November 1, 2021 to November 30, 2021 69626 New Times 2,318.00 01/07/2022 New Times lnv333900 NewspaperPublication 12-2-21 69627 Office Depot 1,054.57 01/07/2022 Office supplies for City-All Departments 69628 -PACIFIC GAS AND ELECTRIC 20,785.48 01/07/2022 Public Works & Parks & Rec Electric 11/21/21-12/18/21 69629 Peak WiFi.com 1,685.00 01/07/2022 Grover to Pismo Link 69630 PORTABLE JOHNS INC. 108.12 01/07/2022 Single unit rental 10/24/21-11/20/21 69631 PROCARE JANITORIAL SUPPLY 877.08 01/07/2022 Supplies for City Hall & PD Project# 21-11571 / 1206 W Grand Affordable Housing Project. 69632 Rincon Consultants, Inc 2,607.50 01/07/2022 Period from 11/1/2021 through 11/30/2021 City of GB - Major Street Maintenance Oak Park Blvd. Progress 69633 S CHAVES CONSTRUCTION 82,347.81 01/07/2022. billiing#2 69634 SAFETY-KLEEN SYSTEMS INC. 185.97 01/07/2022 Parts Washer/ Shop 69635 Sarabia, Juan 80.00 01/07/202'?- 2442 refund security deposit 12/18/2116th St. 69636 Siteone Landscape Supply, LLC 62.34 01/07/2022 Parts for Mentone Park 69637 SpeakWrite Billing Department 215.70 01/07/2022 transcription services 69638 Sweeton, Christopher 1,000.00 01/07/2022 Reimbursement for COBRA-Dec 2021 69639 TCA Tools Inc 361.05 01/07/2022 Tools for Truck #502 69640 U.S. POSTAL SERVICE POSTMASTER 322.00 01/07/2022 Annual PO Box Fee for 468 69641 United Domestic Workers 246.00 01/07/2022 2438 11/29/21 Ramona security deposit refund. 69642 UNITED STAFFING ASSOCIATES, LLC 209.73 01/07/2022 Temp employment for Admin Svs W/E 1/2/22 Check_
69643 Venco Power Sweeping, Inc.
69644 VERIZON WIRELESS
69645 Vriend, Gina
69646 WALLACE GROUP
69647 Water Systems Consulting Inc.
69648 Weatherington, Phyllis
69649 Zero Waste USA/ZA USA, Inc
Total $
Check Amount
6,152.72
447.23

29.00 11,925.69
1,920.80

64.00 1,938.02
225,693.07
01/07/2022 i Street Sweeping - Month of December
01/07/2022 / Cellular Phones for PW
01/07/2022 / Refund Tai Chi 12/20212 class because of Covid.

I Project 0636-0021-00 City of GB Regulatory Compliance Assistance 01/07/20221 FY 2021-2022. Services rendered through November 30, 2021 01/07/2022'.

I
01/07/2022:
01/07/2022:

NCMA Staff Extension Services FY21-22. Services Rendered from 11/1/2021-11/30/2021
Refund for BTC paid twice (once in Dec 2020 & June 2021) STR0144 Mitt N Bag - Doggie Bags for Parks
ACCOUNTS :PAYABLE
CHECK DATE 01/13/2022
'
Services rendered for filing of CA Debt & Investment Advisory 69650 Albert M. Peche 400.00 01/13/2022 C~mmission
69651 Allegranza, Jared 391.00 01/13/2022 J~red Allegranza EducationReimbursement 1-11-2022

ARAMARK UNIFORM SERVICES AUS I
69652 WEST LOCKBOX 1,510.36 01/13/2022 U,NIFORMS
69653 AT&T TELECONFERENCE SERVICES 11.93 01/13/2022 At&T TeleConf.Svcs lnv201-008553 01-01-2022 69654 Big Brand Tire & Service 304.35 01/13/2022 Tjre change 69655 CT INTERNATIONAL 206:63 01/13/2022 nitrile gloves CALIFORNIA BUILDING STANDARDS i
69656 COMMISSION 72.00 01/13/2022 4th Qtr 2021 Green Bldg Fees 69657 CARQUEST AUTO PARTS 222.00 01/13/2022 S~pplies
69658 COLD CANYON LANDFILL INC. 564.75 01/13/2022 Waste Disposal - ECR Homeless Camp Trash Bags 69659 COLLINGS & ASSOCIATES, LLC 550.00 01/13/2022 Cpllings review of 773 Manhattan 69660 CyraCom, Inc 3.90 01/13/2022 ayer the phone interpretation 69661 DE LAGE LANDEN 227.29 01/13/2022 L~ase payment for Sharp/MX-5071 Copier 69662 DE LAGE LANDEN 312.11 01/13/2022 S~arp/MX-5071-Lease PD 69663 Deluxe 281.66 01/13/2022 B~nk Deposit Slips

DEPT OF CONSERVATION DIVISION OF
69664 ADMIN SERV ACCT 0 214.68 01/13/2022 4th Qtr 2021 SMIP Fees 69665 FRANCHISE TAX BOARD 75.00 01/13/2022 State of California Franchise Tax Board Garnishment for Employee 69666 GOODMAN MATTHEW 250.00 01/13/2022 l'Jjatthew Goodman EducationalReimbursement 1-11-22

GROVER BEACH POLICE OFFICERS
69667 ASSOC. 1,210.00 01/13/2022 G:rover Beach Police Officers Association Dues Paycheck Date 1-14-22 69668 Hamilton, Claire 143.00 01/13/2022 R~fund Tiny Tots class full December 2021. 69669 J.B. DEWAR INC. 3,358.32 01/13/2022 G~s bill 11-15-21 69670 KEYLOCK SECURITY SPECIALISTS 3.00 01/13/2022 K~ylock Inv 97845 KeyforDeputyCityMngr 1-10-2022 69671 LexisNexis Risk Data Management, Inc. 1,617.00 01/13/2022 A'I/CC subscription 69672 Martin, Kayla 80.00 01/13/2022 2~59 refund security deposit 1/2/2022 16th St Park. 69673 MIER BROS LANDSCAPE PRODUCTS 145.46 01/13/2022 F\11 Sand/ Storm Water -Yard 69674 MISSION LINEN SUPPLY SAP #110035 180.47 01/13/2022 Jv'.lat and mop service. 69675 Rodriguez, Sergio 80.00 01/13/2022 2~57 Refund security deposit 12/19/21 GH Upper.

SOUTH SAN LUIS OBISPO CO.
69676 SANITATION DISTRICT 13,612.00 01/13/2022 4th Qtr 2021 Sanitation Dist. Fees STACY JOHNSON DBA ARROYO i
69677 GRANDE GLASS 533.93 01/13/2022 Train Station Window Replacement 69678 STATE DISBURSEMENT UNIT 154.50 01/13/2022 C~ild Support Garnishment for employee 69679 STATE DISBURSEMENT UNIT 216.50 01/13/2022 C~ild Support Garnishment for employee 69680 Tripepi, Smith & Associates, Inc. 242.50 01/13/2022 Tripepi-Smith Inv 7360 SocialMedia 12-31-2021 69681 VERIZON WIRELESS 102.70 01/13/2022 ~onthly Charges -Comm Dev & Parks (ll/27/21-12/26/21) 69682 VERIZON WIRELESS 1,061.16 01/13/2022 Phone Bill- January-PD TOTAL $ 28,338.20

ACCOUNTS PAYABLE
CHECK DATE 01/20/2022
69683 AGP Video
69684 AIRGAS USA LLC
69685 Alexander's Contract Services
69686 APODACA PAVING INC.
69687 AQUA-METRIC SALES CO.
69688 AT&T
69689 AT&T
69690 Badge Frame, Inc
69691 Bryan Millard
69692 CANNON ASSOCIATES
69693 CITY OF GROVER BEACH WATER DEPT.
69694 CNA SURETY DIRECT BILL

CONFLUENCE ENGINEERING
69695 SOLUTIONS, INC
69696 Cook's Communication Corp
69697 DJ'S PLUMBING INC
69698 G.T. COX ELECTRIC
69699 GLENN BURDETTE, INC.
69700 HACH COMPANY
69701 Hernandez, Stephanie
69702 Hinderliter Dellamas & Associates
69703 INFORMATION TECHNOLOGY
69704 J.B. DEWAR INC.
69705 JAS PACIFIC
69706 JAY SWIFT
69707 Krafthefer, M Cynthia
69708 League of California Cities

LEWIS BRISBOIS BISGAARD & SMITH
69709 LLP LAWYERS
69710 Michael K. Nunley & Associates, Inc.
69711 MUNRO, JIM
69712 New Times
69713 Office Depot
69714 Otto Electrical
69715 PACIFIC GAS AND ELECTRIC
69716 PAVEMENT ENGINEERING INC.
69717 Peters, John
69718 Ready Refresh by Nestle
69719 Rincon Consultants, Inc
69720 SAN LUIS OBISPO COUNTY YMCA
69721 South County Chambers of Commerce
SOUTH SAN LUIS OBISPO CO.
69722 SANITATION DISTRICT
69723 SOUZA CONSTRUCTION INC.
3,195.00 01/20/2022 j
145.90 01/20/2022 I
3,330.48 01/20/2022 I
I
39,600.00 01/20/2022 I
2,247.48 01/20/2022 I
135.12 01/20/2022 !
592.85 01/20/2022,
364.52 01/20/2022'.
215.00 01/20/2022:
33,985.01 01/20/2022;
I
AGP Video_lnv 8658_1-12-2022
Large Acetylene, Large ArgonJ Large Oxygen
South Side Meter Reads - 28~4 Meters/January
N 4th St, W Frand (Front) to Ocean View/ Grind & Patchwork I Overlay :
2" water meters I
Monthly water alarm circuits [/7 /22-2/6/22
City Hall & PD Fax & Modem 11/22/21-12/21/21
Officer/Civilian Employee of the Year plaques
Meal Stipend for Training Course
Project 201240 City of GB CIP14267-2 Water Main Upgrade. 344.00 01/20/2022: 2295-12@ S 13th & Baden
100.00 01/20/2022: Bond Renewal-CNA.Surety Treasures Bond Chief Water Operator Services -Prepared November DDW
2,300.00 01/20/2022: Reports/ December 2021
333.50 01/20/2022; ROOF-FT-NITI-M Stico Flexi Whip Antenna 614.00 01/20/2022: Replace drain assembly men's bathroom - Ramona Park 550.35 01/20/202i Mentone Basin Basketball Court Lights/Sockets 32,500.00 01/20/2022: Audit to Date !
420.06 01/20/2022, Test Kit

64.00 01/20/2022: Refund for Overpayment of 2021 BTC-STR0142 12,000.00 01/20/2022: December services for cannabis mgmt program (NHC and CBD) 240.66 01/20/2022 · External User Access/Each I
3,864.48 01/20/2022 Gas 1/15 I
20,197.32 01/20/2022· JAS Dec2021 Bldg Plan Checks
Medical Reimbursement per retiree contract - Unpaid balance

87.43 01/20/2022. due to increase for Jan 2022 I
2,475.00 01/20/2022' Refund of SSLOCSD Impact Fee
200.00 01/20/2022' LeagueofCACities_2022MemberDues_lnv1757 _1-10-22 400.00 01/20/2022: Water Issues File #36066-2. Current fees through 12/31/2021 5,225.46 01/20/2022!
275.00 01/20/2022,
106.00 01/20/2022
1,162.63 01/20/2022
375.00 01/20/202i
159.17 01/20/2022
CDBG Capital Projects Engine'ering Services for Water CDBG 4267-

2. Billing through Jan 1, 2022:

Meal Stipend for training course
New Times_PublicNotice_lnv; 335247 _1-13-2022
Supplies I
PD Generator Connections Cabinet
Public Works Electric Charges 12/8/21-1/5/22
Project 190389-01 Pavement' Management Support Services for 1,377.50 01/20/2022: period 7/1/2021 through 7/3,1/2021 275.00 01/20/2022: Meal Stipend for CPCA Confe.rence
213.82 01/20/20221 Bottled Water/City Hall & PW
I
6,132.50 01/20/20221
12,500.00 01/20/20221
1206 W Grand - Affordable Housing Project. Period from
I
12/1/2021 through 12/31/2021
YMCA grant final payment I
I
9,833.00 01/20/2022: SCCC_EcoDev-December_ln"'.12734_1-18-2022 11,137.00 01/20/2022 4th Qtr 2021 Sanitation Dist. Fees 26,733.95 01/20/2022 GB Measure K-14 Ph2/ Period Ending date 12/31/2021

THE LINCOLN NATIONAL LIFE
69724 INSURANCE CO 2,095.67 01/20/20221 Employee insurance premiujs - Feb 2022 69725 Tripepi, Smith & Associates, Inc. 7,006.00 01/20/20221 Tripepi Smith_lnv 7384_1-15{2022 69726 ULTREX 396.50 01/20/20221 M5119 B/W and Color I
69727 UNITED STAFFING ASSOCIATES, LLC 1,250.92 01/20/20221 Temporary Employment for 1dmin Svs

US BANK CORPORATE PAYMENT
69728 SYSTEMS 9,739.85 01/20/20221 City Emplo;ee Credit Card Ch,lrges 69729 Walid Elsayed 60.00 01/20120221 Meal Stipend for Training Course I
I
TOTAL $ 256,557.13

ACCOUNTS PAYABLE
CHECK DATE 01/27/2022
I Check Name Check Amount Check Date Invoice Desc
Services rendered for filing CA Debt & Investment Advisory 69730 Albert M. Peche 800.00 01/27/2022 Commission - 2020 Water Project Placement Job #621-012 CIP 2295-12 Citywide Street Repair Light
69731 American Asphalt South, Inc. 13,049.46 01/27/2022 Maintenance Project. Work completed to June 18, 2021 69732 American Planning Association - APA 800.00 01/27/2022 APA Membership Period 4/1/2022-3/31/2023 69733 Anna Lanier 1,886.50 01/27/2022 CFS Tiny Tots for January 2022 two classes. 69734 Big Brand Tire & Service 338.83 01/27/2022 Tire change

BLUE SHIELD OF CA LIFE & HEALTH MEDICAL
69735 EYE SERVIC 720.40 01/27/2022 Employee insurance premiums - Feb 2022 69736 Boone Printing & Graphics 120.66 01/27/2022 Boone Graphics_lnv 82952_BusCards-Munoz_l-19-22 69737 CALIFORNIA POLICE CHIEFS ASSOCIATION 99.00 01/27/2022 Peters- Technology Summit Registration Fee 69738 COLLINGS & ASSOCIATES, LLC 250.00 01/27/2022 Collings Review of 1091 Highland 69739 Doe Kristopher 317.80 01/27/2022 Payment 2 for Paint Class 11/19/21 TO 3/4/22 Monthly service GBCC & Ramona. Bldg Attendant Ser Jan
69740 EXECUTIVE JANITORIAL INC. 3,820.00 01/27/2022 22. 69741 FERGUSON ENTERPRISES INC. #1350 444.62 01/27/2022 Supplies State of California Franchise Tax Board Garnishment for 69742 FRANCHISE TAX BOARD 75.00 01/27/2022 employee
69743 G.T. COX ELECTRIC 199.71 01/27/2022 Well #4 Repairs Grover Beach Police Officers Association Dues check date 1- 69744 GROVER BEACH POLICE OFFICERS ASSOC. 1,210.00 01/27/2022 27-22 NCMA 2021 Annual Report. Services from December 1, 2021 69745 GSI Water Solutions, Inc 2,047.54 01/27/2022 through December 31, 2021 69746 HACH COMPANY 85.40 01/27/2022 NITRIVER 3 PWD PK/100 69747 INTOXIMETERS INC 75.90 01/27/2022 Mouthpiece ASIV or ECIR 69748 JULIAN MORA Dba 2M WASTE SOLUTIONS 445.00 01/27/2022 ECR - Trailer Load of Trash / Homeless 69749 Marquez, Ruthan 4.0.00 01/27/2022 Refund Ukulele 2. 69750 McGarvey, Colleen 80.00 01/27/2022 2456 16th St 1/8/22 security deposit.

GB Development Code Update. Project 013898.00
Professional Services from December 1, 2021 to December 69751 MOORE IACOFANO GOLTSMAN, INC 11,316.24 01/27/2022 31,2021 69752 O'REILLY'S AUTOMOTIVE INC 302.29 01/27/2022 Parts for Truck #400 69753 PACIFIC GAS AND ELECTRIC 20,100.19 01/27/2022 Public Works & Parks & Rec Electric 12/21/21-1/19/22 69754 Principal Life Insurance Company 4,677.60 01/27/2022 Employee insurance premiums - Feb 2022 69755 Randy Gonzalez 97.44 01/27/2022 Randy Gonzalez_Education Reimbursement_l-25-2022 69756 SANDY MERSHON 2,670.50 01/27/2022 CFS Tiny Tots January 2022 69757 SOUTHERN CALIF GAS CO 1,340.31 01/27/2022 Gas charges for City facilities 12/13/21-1/12/22

STANLEY CONVERGENT SECURITY
69758 SOLUTIONS INC. 74.23 01/27/2022 Maintenance Charges 2/1/22 - 2/28/22 16th & Mentone 69759 STATE DISBURSEMENT UNIT 154.50 01/27/2022 Child Support Garnishment for employee 69760 STATE DISBURSEMENT UNIT 216.50 01/27/2022 Child Support Garnishment for employee SWRCB ACCOUNTING OFFICE ATTN: Water System Annual Fees. Billing Period 7 /1/2021- 69761 DRINKING WATER PROGR 27,493.71 01/27/2022 6/30/2022 69762 TCA Tools Inc 108.75 01/27/2022 Tools for Shop
69763 TERMINIX PROCESSING CENTER 146.00 01/27/2022 Exterior pest control Ramona Jan 2022 69764 UNITED STAFFING ASSOCIATES, LLC 994.07 01/27/2022 Temporary Employment for Ad min Services W /E 1/16/22 69765 USA BLUE BOOK 1,462.92 01/27/2022 Parts-PW
69766 VERIZON WIRELESS 424.49 01/27/2022 Cellular phones for PW crew 69767 Vital Records Holdings, LLC 66.95 01/27/2022 Document storage 1/1/22 - 1/31/22 69768 WALLACE GROUP
69769 Water Systems Consulting Inc.

TOTAL $
Project 0636-0009-00 Map Checking Srvs. Professional
services rendered through December 31, 2021. 275 N 4th
4,955.05 01/27/2022 $1653.00 / 931 Huston $304.50
NCMA Staff Extension Services FY21-22. Services rendered 1,412.00 01/27/2022 from 12/1/2021-12/31/21
104,919.56
Agenda Item No. 2

MINUTES

CITY COUNCIL MEETING
TUESDAY, FEBRUARY 15, 2022
Given public health conditions and consistent with Assembly Bill No. 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, City Council meetings will be held by teleconference only until further notice.

CALL TO ORDER Mayor Lee called the meeting to order on Tuesday, February 15, at 6:00 p.m., with all Council Members teleconferencing.

MOMENT OF SILENCE
FLAG SALUTE The flag salute was led by Public Works Director/City Engineer Greg Ray.

ROLL CALL
City Council: Council Members Robert Robert, Daniel Rushing, Mayor Pro Tem Karen Bright and Mayor Jeff Lee were present via video conference. Council Member Anna Miller was not present.

City Staff: City Manager Matthew Bronson, City Attorney David Hale, Deputy City Manager Kristin Eriksson City Clerk Wendi Sims, Police Chief John Peters, Community Development Director Bruce Buckingham, Public Works Director/City Engineer Greg Ray, Administrative Services Director Deanne Purcell, Parks & Recreation Program Kathy Petker, and Deputy City Clerk Nicole Retana were also present.

CLOSED SESSION ANNOUNCEMENTS
On Monday, January 24, 2022, at 8:40 p.m., the Council met in Closed Session regarding the following items:

A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: APN No. 060-542-014
Agency Negotiators: City negotiators will be City Manager, Matt Bronson, Community Development Director Bruce Buckingham
Negotiating Parties: Unknown
Under Negotiation: Instruction to Negotiators will concern both price and terms of payment.

B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Consideration of initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 (One potential case).

City Attorney Hale announced that item B was taken off the agenda and that there were no reportable actions taken during Closed Session.

AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda.

Agenda Item No. 3
Minutes: City Council Meeting Page 2
Monday, February 15, 2022

CEREMONIAL CALENDAR
None.

PRESENTATIONS
None.

PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public calling into the meeting on the teleconference line (805) 321-6639, for comment on items of interest which were within the jurisdiction of the City Council but were not listed on the agenda. No one made public comment and the Mayor closed the Public Communications segment for this portion of the meeting.

CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Lee invited public comment on the items under the Consent Agenda. At this time Mayor Lee asked if there was anyone on the teleconference line that wanted to make any public comments there was no one on the line so Mayor Lee closed public comment.

It was motioned by Mayor Pro Tem Bright and seconded by Council Member Robert to approve Consent Agenda Item Nos. 1, 2, and 3 as recommended. The motion carried on the following roll call vote:

AYES: Council Members – Robert, Rushing, Mayor Pro Tem Bright, and Mayor Lee
NOES: Council Members – None
ABSENT: Council Members – Miller
ABSTAIN: Council Members – None

1. Minutes of the City Council Meeting on Monday, January 24, 2022.

Action: Approved minutes as submitted.

2. Adoption of Findings Related to AB 361 Allowing Continued Teleconferencing Meetings
Action: Adopted required findings with respect to the City of Grover Beach’s continued utilization of teleconferencing meetings in conformance with AB 361 (Government Code Section 54953.)

3. COVID-19 Response Update
Action: Received an update on the countywide and City response to the COVID-19 pandemic.

PUBLIC HEARINGS
None.

Minutes: City Council Meeting Page 3
Monday, February 15, 2022

REGULAR BUSINESS

4. Pilot Program to Co-locate Four Pickleball Courts at the Mentone Basin Park Tennis Court
Mayor Lee read the title to the foregoing item and deferred to staff for a report.

Parks and Recreation Director Petker presented a staff report via PowerPoint Presentation discussing the Parks, Recreation and Beautification Commissions recommendation for the pilot program for Pickleball Courts at Mention Basin Park.

Mayor Lee invited public comment on this matter.
• Sean Lee
No further public comments were received at this time and the Mayor closed public comment.

Action: It was motioned by Council Member Rushing seconded by Mayor Pro Tem Bright to approve the recommendation of the Parks, Recreation and Beautification Commission to start a pilot program to co-locate four pickleball courts at the Mentone Basin Park tennis courts. The motion carried on the following roll call vote:

AYES: Council Members – Robert, Rushing, Mayor Pro Tem Bright, and Mayor Lee
NOES: Council Members – None
ABSENT: Council Members – Miller
ABSTAIN: Council Members – None

5. Central Coast Blue Cost Sharing Agreement and State Revolving Fund Loan Application
Mayor Lee read the title to the foregoing item and deferred to staff for a report.

Public Works Director/City Engineer Ray presented staff report via PowerPoint and introduced Consultant Justin Pickard with Water Systems Consulting (WSC).

Mayor Lee invited public comment on this matter.
• Sean Lee
No further public comments were received at this time and the Mayor closed public comment.

Minutes: City Council Meeting Page 4
Monday, February 15, 2022
Action: It was motioned by Council Member Robert seconded by Mayor Pro Tem Bright to approve the Central Coast Blue Cost Sharing Agreement and authorize the City Manager to sign on behalf of the City and adopt Resolution No. 22-04 authorizing the City Manager to file an application to the State Water Resources Control Board for the State Revolving Fund Loan for the project. Including the approval of the Statement of Overriding Consideration and the Findings that are contained in Resolution No. 21-05 relayed there too. The motion carried on the following roll call vote:

AYES: Council Members – Robert, Rushing, Mayor Pro Tem Bright, and Mayor Lee
NOES: Council Members – None.

ABSENT: Council Members – Miller
ABSTAIN: Council Members – None
Resolution No. 22-04: A Resolution of the City Council of the City of Grover Beach, California, Authorizing the City Manager to File a Financial Assistance Application for the Central Coast Blue Project.

6. Homelessness Response Update
Mayor Lee read the title to the foregoing item and deferred to staff for a report.

City Manager Bronson presented the staff report via a PowerPoint presentation.

Jana Nichols with the 5 Cities Homeless Coalition spoke on local homelessness issues.

Mayor Lee invited public comment on this matter.
• Lynn Austin
• Cindy Price
• Bruce Severance
• Patrick Rebstock
• Richard Neufeld
• Martin Deleon
• Sean Lee
• Annabelle Ioannides
• Maalaea Quirk
• Krista Jeffries
• Shannon Martin
• Debbie Aguirre
• David Swift
No further public comments were received at this time and the Mayor closed public comment.

Action: Received an update on the current status of the City’s response to homelessness in Grover Beach and actions the City is taking to address this issue and proved input and direction to staff.

Minutes: City Council Meeting Page 5
Monday, February 15, 2022
RECESS: Mayor Lee requested a 10-minute break, upon consensus of the City Council, the meeting recessed at 9:41 p.m.

RECONVENE: At 9:51 p.m. the meeting reconvened with all members of Council present with the exception of Council Member Miller who was absent.

7. Adoption of Community Grants Policy
Mayor Lee read the title to the foregoing item and deferred to staff for a report.

Deputy City Manager Eriksson presented the staff report via a PowerPoint Presentation Mayor Lee invited public comment on this matter. No public comments were received at this time and the Mayor closed the Public Hearing.

Action: It was motioned by Council Member Robert seconded by Mayor Pro Tem Bright to adopt Resolution No. 22-05 approving a Community Grants Policy for providing assistance to community-based organizations to provide services or programs for Grover Beach Residents. The motion carried on the following roll call vote:

AYES: Council Members – Robert, Rushing, Mayor Pro Tem Bright, and Mayor Lee
NOES: Council Members – None.

ABSENT: Council Members – Miller
ABSTAIN: Council Members – None
Resolution No. 22-05: A Resolution of the City Council of the City of Grover Beach, California, Adopting a Community Grants Program Policy.

REGULAR BUSINESS
None.

COUNCIL COMMITTEE REPORTS
None.

LEAGUE OF CALIFORNIA CITES – POLICY COMMITTEE REPORTS AND OTHER LEAGUE

MATTERS
None.

Minutes: City Council Meeting Page 6
Monday, February 15, 2022

COUNCIL COMMUNICATIONS
None.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson stated the City has a lot of construction going on, road work, water improvements, S. Oak Park Blvd paving, streets being torn up, again; “building a better City block by block”. He also, thanked the Community for their patience and flexibility while we do this.

CITY ATTORNEY’S REPORTS AND COMMENTS
None.

CLOSED SESSION
City Attorney Dave Hale announced closed session items.

The Mayor opened the floor to any member of the public calling into the meeting on the teleconference line (805) 321-6639, for comment on Closed Session. No one was on the line for public comment.

At 10:08 p.m., the Council met in Closed Session regarding the following items:

A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
In accordance with subsection (d) of Section 54956.9 of the Government Code City of Grover Beach v. Albert Bruce et all., 21CV0452
Closed Session Announcements: At 10:22 p.m., Mayor Lee reconvened the meeting in open session with all Council Members present and it was announced that there were no reportable actions taken during Closed Session.

ADJOURNMENT
There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 10:23 p.m.
_____________________________

JEFF LEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 4

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 28, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: COVID-19 Response Update

RECOMMENDATION
Receive an update on the countywide and City response to the COVID-19 pandemic.

BACKGROUND
The City continues its work in addressing the COVID-19 coronavirus pandemic following the direction of the County Public Health Department in coordination with other local agencies. The following is an update on the status of the COVID-19 pandemic in the county as well as the City’s continued response since the last regular Council meeting on February 15. \
As of February 22, San Luis Obispo County has had a total of 51,995 confirmed COVID-19 cases with 20 current hospitalizations including two in the ICU and 738 active cases at home. This is only a 5% increase in total cases over the past two weeks with a 53% decrease in active cases.

Hospitalizations have also decreased by 42% over the past two weeks and the 14-day average number of new daily cases is now 163 which is significantly below from the all-time high of 649 on January 28.

In South County, there has been a total of 14,125 confirmed cases (approximately 27% of countywide cases) with 4,657 in Arroyo Grande, 4,245 in Nipomo, 2,501 in Grover Beach, 1,624 in Oceano, and 1,098 in Pismo Beach. Current case numbers in Grover Beach per 1,000 residents (192) continue to be lower than Oceano (232), Arroyo Grande (259), and Nipomo (265), though higher than Pismo Beach (137). There has been approximately a 4% increase in cases in Grover Beach over the past two weeks which is consistent with countywide trends in case numbers.

COVID metrics in January including cases, hospitalizations, and deaths were at the highest level since the beginning of the pandemic as predicted due to the transmission of the omicron variant.

However, conditions in the past couple of weeks have continued to improve rapidly as seen in the decrease in hospitalizations from the peak experienced in January. This downward trend in hospitalization and cases was expected from the experience with the omicron variant in other parts of the country and in other countries. Given these improvements, the statewide mask order for indoor public places expired on February 16. This mandate remains in place for unvaccinated individuals as well as for all individuals in higher risk settings such as public transit, child care centers, homeless shelters, and schools. San Luis Obispo County announced a similar lifting of the County’s mask order for indoor public spaces in alignment with the State.

Vaccines are available for everyone ages 5 and up with boosters also available for ages 12 and up who received their vaccination five months ago. Approximately 67% of residents in San Luis Obispo County ages 5 and up have been fully vaccinated with 74% of residents at least partially Staff Report: COVID-19 Response Update Page 2
February 28, 2022
vaccinated and 27% unvaccinated. In addition, approximately 51% of fully vaccinated residents have received a booster. Approximately 64% of residents ages 5 and up in Grover Beach are fully vaccinated and 71% partially vaccinated for reference. The rate of vaccination in the county continues to increase slowly towards the desired goal of 70%-80% of residents fully vaccinated.

Vaccinations are available at the Public Health clinic at 286 South 16th Street and one of the County’s three testing sites is located at 1336 Ramona Avenue.

City Hall counter hours are 8:00 a.m. to 5:00 p.m. on Monday through Thursday to provide inperson public access during normal business hours in addition to access electronically though email or on the City’s website or over the phone. The counter is closed on Fridays to allow additional time for staff to process applications, issue permits, and carry out other administrative tasks. Employees are working primarily in the office however remote work is being carried out by some employees particularly with caregiving needs or who work in more open workspaces.

Beginning with a special meeting on March 7, Council meetings will return to in-person meetings in the month of March with a call-in function available for the public to make comments without attending the meeting in person.

FISCAL IMPACT
There is no fiscal impact associated with this item.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive an update on the response to the COVID-19 pandemic; or

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Agenda Item No. 5

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 28, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Fourth Public Hearing on the Creation of a District-Based City Election System and Selection of a Final District Map

RECOMMENDATION
Conduct a public hearing to consider focus draft maps selected by the Council at the January 24, 2022 public hearing and select a final district map.

BACKGROUND
On July 1, 2019, the City Council adopted Resolution No. 19-37 (shown as Attachment 1) declaring its intention to transition from at-large to district-based elections for the City Council commencing with the General Municipal Election in November 2022. Pursuant to Elections Code Section 10010, the City conducted two public hearings on June 28, 2021 and July 26, 2021 prior to drafting maps of proposed districts, at which time the public was invited to provide input regarding the composition of said districts. The City worked with demographic consultant National Demographics Corporation (NDC) to create four draft maps for the City Council’s consideration and to analyze publicly submitted maps. The City also worked with communications consultants Tripepi Smith on public outreach efforts to inform the public about district elections and to seek input in developing district maps, in compliance with State law, including extensive Spanish language outreach. A summary of outreach efforts is shown in Attachment 6.

On January 24, 2022, the City Council conducted the third districting hearing and considered the NDC draft maps, as well as 41 publicly submitted maps, which included maps depicting communities of interest, single district maps and four-district maps. After deliberations, the Council selected two of the NDC maps (Plans 901 and 904, shown in Attachments 2 and 3) and one map drawn by NDC in response to written public comment (Plan 905, shown in Attachment 4) as focus maps for further consideration. The Council also directed staff to make changes to Plan 901 to lower the total population deviation (Plan 901B, shown in Attachment 5).

This February 28th hearing is the fourth of four public hearings that the City must hold prior to adopting district boundary maps to transition to district-based elections. The purpose of this hearing is to consider those maps selected by the Council for further consideration at the January 24th hearing that reflect Council’s prior direction and public input and for the Council to select a final district map. Following this hearing, staff will bring an ordinance to the Council to adopt the final map with adoption scheduled for March 28, 2022.

Below is a summary of each of the Council-selected focus maps:
• Plan 901 presents a horizontal pattern and uses West Grand Avenue as a boundary between Districts 2 and 3, which also serves as the boundary for the elementary school Staff Report: Fourth Public Hearing on District-Based City Elections and Final Map Page 2 February 28, 2022
attendance areas. The coastal community of interest is kept whole in District 1 and a tenant community of interest is concentrated in Districts 2 and 3. Additionally, the overall Latino population and Latino citizen voting age population are concentrated in District 3, with 40% and 30%, respectively.
• Plan 901B is substantially the same as Plan 901; however, district boundaries do not follow the same streets as consistently to allow for a lower total population deviation. The Latino overall and citizen voting age populations remain concentrated in District 3, with 40% and 30%, respectively.
• Plan 904 presents a hybrid pattern and does not use West Grand Avenue as a boundary.

The commercial corridor along West Grand Avenue, including a concentration of multifamily housing, is contained within District 2. The coastal community of interest is kept whole in District 3. Additionally, the overall Latino population and Latino citizen voting age population are concentrated in District 2, with 39% and 29%, respectively. • Plan 905 presents a quadrant pattern and uses West Grand Avenue as a boundary between Districts 1 and 3, which also serves as the boundary for the elementary school attendance areas. The coastal community of interest is shared between Districts 1 and 3, and a tenant community of interest is concentrated in Districts 2 and 3. Additionally, the overall Latino population and Latino citizen voting age population are concentrated in District 3, with 41% and 29%, respectively.

FISCAL IMPACT
There is no fiscal impact associated with this public hearing.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct a public hearing to consider the Council-selected focus draft maps and select a final district map for adoption by ordinance on March 28, 2022; or 2) Do not select a final district map and provide direction on one or more additional maps for the Council to consider; or
3) Provide other direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Attachments

1. Council Resolution No. 19-37

2. Plan 901

3. Plan 901B

4. Plan 904

5. Plan 905

6. Public Outreach Summary
RESOLUTION N0.19-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA, DECLARING ITS INTENTION TO TRANSITION FROM AT-LARGE TO DISTRICT-BASED ELECTIONS BY NOVEMBER 2022
WHEREAS, members of the City Council of the City of Grover Beach are currently elected in "atlarge" elections in which each of the four Council Members along with the Mayor is elected by the registered voters of the entire city; and ·
WHEREAS, California Government Code section 34886 permits the legislative body of a city to change its method of election by ordinance from an "at-large" system to a "district-based" system in which each member of the legislative body is elected by the voters in the district in which the candidate resides; and
WHEREAS, on May 29, 2019, the City received a letter entitled Notice of Violation of California Voting Rights Act ("Notice") from Jeffrey Mayes, attorney, on behalf of Felipe Rueff ("Prospective Plaintiffs") asserting that the City's elections are characterized by racially polarized voting and demanding that the City transition to district-based elections pursuant to the California Voting Rights Act ("CVRA"); and
WHEREAS, a violation of the CVRA is established if it is shown that racially polarized voting occurs in elections (Elections Code 14028(a)). "Racially polarized voting" means voting in which there is a difference in the choice of candidates or other electoral choices that are preferred by voters in a protected class, and in the choice of candidates and electoral choices that are preferred by voters in the rest of the electorate {Elections Code section 14026(e)); and
WHEREAS, the CVRA allows for Prospective Plaintiffs to file a lawsuit against the City if the City does not allow a resolution of intent to institute district-based elections within 45 days of the Notice ("45- day period") (Elections Code section 1001 O); and
WHEREAS, the Notice states that if the City declines to adopt a resolution of intent to transition to district-based elections within the 45-day period, Prospective Plaintiffs will commence a lawsuit to compel district-based elections; and
WHEREAS, July 13, 2019 is the 45th day from the date the City received the Notice; and WHEREAS, the Prospective Plaintiffs offered to consider a settlement agreement whereby the City would not be required to institute district-based elections until the November 2022 regular election in order to allow 2020 U.S. Census data to be taken into account in drawing district boundaries; and WHEREAS, the City denies the assertion that it's at-large system violates the CVRA or any other provision of law and asserts that the City's election system is legal in all respects; and WHEREAS, the City Council has concluded that the public interest would be best served by transitioning to a district-based election system due to the inherent uncertainties and costs associated with defending the City's at-large election system again a CVRA lawsuit; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Grover Beach:

SECTION 1. The above recitals are true and correct.

SECTION 2. Before the November 2022 regular election, the City Council will consider adoption of an ordinance to institute a district-based election system as authorized by Government Code section 34886.

Attachment 1
SECTION 3. Prior to considering an ordinance to establish district boundaries for a districtbased election system, the City will follow the requirements pursuant to Elections Code section 10010 to solicit public input in the district map drawing process.

Upon motion by Mayor Pro Tern Shah, second by Council Member Lance, and on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Council Members - Bright, Lance, Nicolls, Mayor Pro Tern Shah, and Mayor Lee
Council Members - None
Council Members - None
Council Members - None
The foregoing Resolution No. 19-37 was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 1st day of July, 2019. 3 2
4 1
Pismo State
Beach
Pismo State
Beach Golf
Course
Mentone Basin
Park
16th Street Park
Grover Heights
Park
Costa Bella Park
Ramona Garden
Park
Cabril
o
Hwy
Margarita Ave
HHuston St
u
b
er St S 4th St
N 4th St
El Cam Real
Grand Ave
Front St
Oak Park Blvd
16th
St
Anita Ave
Newport Ave
N
1st
St
N 2nd St
Ocean View Ave
13th
St Ramona Ave
Beckett Pl
Highland Way
N
8th St
Nacimiento Ave
N
5th St
N
3rd
St
Baden Ave
Mira
Mar
Ct
Laguna Ct
Park Ln
S
an
S
or e
nto
Ct S
O
a
k
P
ark
Blvd
The Pike
N 13th
St
Park View Ave
S
1 6th
St
T
a
n
n
er Ln
Messina
Ct
B
arc
a
St
Mentone Ave Lyn
e
St
Calvin Ct
P
ark Dr
S
3rd
St Saratoga Ave S 5th St
Ritchie Rd
C
o
urtlan
d
St
Atlantic City Ave
N
6th
St Longbranch Ave
Rockaway Ave
N
7th
St S 10th
St N
9th
St S 14th
St Brighton Ave
B
alb
o
a
St Seabright Ave
N 10th
St S 11th
St Nice Ave
Trouville Ave
C
a
pitola
St Shanna Pl
Saint John Cir
Farroll AveDriftwood St
Stinso
n
Ct D
ove
r
Ct
S 6th
St Manhattan Ave S 8th St
S
7th
St S
9th
St Total Population Deviation: 9.5%
Most Latino District: 3 (30% CVAP)
City of Grover Beach
2021/22 Transition to
District Elections
National Demographics Corp., Jan. 14, 2022
Proposed Election Sequence:
2022: Districts 1 & 2
2024: Districts 3 & 4
Plan 901
©2021 CALIPER
Attachment 2
Category Field 1 2 3 4 Total
Total Population 3,271 3,348 3,075 3,045 12,739
Population Deviation 86 163 -110 -140 303
Pct. Deviation 2.70% 5.12% -3.45% -4.40% 9.51%
Hispanic/Latino 26% 28% 40% 31% 31%
NH White 62% 60% 48% 57% 57%
NH Black 1% 2% 2% 1% 1%
NH Asian/Pac.Isl. 6% 7% 7% 7% 7%
NH Native Amer. 2% 2% 2% 2% 2%
Total 2,233 3,028 2,398 2,301 9,960
Hisp 17% 17% 30% 18% 21%
NH White 73% 74% 55% 78% 70%
NH Black 3% 4% 1% 0% 2%
Asian/Pac.Isl. 7% 5% 13% 4% 7%
Native Amer. 0% 2% 2% 2% 1%
Total 2,203 2,215 1,758 1,998 8,174
Latino est. 18% 16% 25% 22% 20%
Spanish-Surnamed 17% 15% 23% 21% 19%
Asian-Surnamed 2% 2% 3% 2% 2%
Filipino-Surnamed 2% 2% 2% 2% 2%
NH White est. 79% 77% 71% 77% 76%
NH Black 2% 4% 2% 0% 2%
Total 1,829 1,867 1,420 1,694 6,810
Latino est. 15% 15% 22% 20% 18%
Spanish-Surnamed 15% 15% 21% 19% 17%
Asian-Surnamed 2% 2% 3% 2% 2%
Filipino-Surnamed 2% 2% 2% 2% 2%
NH White est. 79% 77% 71% 77% 76%
NH Black 2% 4% 2% 0% 2%
Total 1,312 1,328 940 1,187 4,767
Latino est. 11% 13% 18% 17% 15%
Spanish-Surnamed 11% 13% 18% 17% 14%
Asian-Surnamed 2% 2% 2% 1% 2%
Filipino-Surnamed 1% 1% 2% 2% 2%
NH White est. 83% 78% 75% 79% 79%
NH Black est. 1% 4% 1% 0% 2%
age0-19 18% 22% 33% 21% 24%
age20-60 53% 57% 52% 51% 53%
age60plus 29% 21% 15% 28% 22%
immigrants 14% 8% 7% 8% 9%
naturalized 59% 50% 53% 48% 53%
english 92% 86% 63% 84% 80%
spanish 5% 9% 29% 14% 15%
asian-lang 2% 1% 7% 2% 3%
other lang 1% 4% 0% 0% 1%
Language Fluency Speaks Eng. "Less than
Very Well" 3% 1% 16% 5% 7%
hs-grad 52% 51% 58% 47% 52%
bachelor 19% 21% 18% 26% 21%
graduatedegree 12% 13% 8% 10% 11%
Child in Household child-under18 20% 25% 42% 27% 29%
Pct of Pop. Age 16+ employed 62% 72% 60% 68% 66%
income 0-25k 12% 14% 13% 18% 14%
income 25-50k 19% 15% 25% 24% 20%
income 50-75k 21% 20% 30% 14% 21%
income 75-200k 46% 42% 31% 31% 37%
income 200k-plus 2% 8% 2% 13% 6%
single family 82% 66% 67% 73% 72%
multi-family 18% 34% 33% 27% 28%
rented 36% 54% 59% 43% 49%
owned 64% 46% 41% 57% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Grover Beach - Plan 901
2020 Census
Total Pop.

Citizen Voting Age Pop
Housing Stats
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).

Voter Turnout
(Nov 2018)
3 2
4 1
Pismo State
Beach
Pismo State
Beach Golf
Course
Mentone Basin
Park
16th Street Park
Grover Heights
Park
Costa Bella Park
Cabril
o
Hwy
Margarita Ave
HHuston St
u
b
er St S 4th St
N 4th St
El Cam Real
Grand Ave
Front St
Oak Park Blvd
16th
St
Anita Ave
Newport Ave
N
1st
St
N 2nd St
13th
St Ramona Ave
Beckett Pl
San
Sor
ento
Ct
Highland Way
N
8th St
Nacimiento Ave
N
5th St
N
3rd
St Charles St
Baden Ave Marb
el a
Ct Mira
Mar
Ct
Laguna Ct
Park Ln
S
O
a
k
P
ark
Blvd
The Pike
N 13th
St
Park View Ave
S
1 6th
St
T
a
n
n
er Ln
B
arc
a
St
S 14th
St Mentone Ave Lyn
e
St Ritchie Rd
Calvin Ct
P
ark Dr
S
3rd
St Saratoga Ave S 5th St
C
o
urtlan
d
St
Atlantic City Ave
N
6th
St Longbranch Ave
Rockaway Ave
N
7th
St S 10th
S
N
t 9th
St Brighton Ave
B
alb
o
a
St Seabright Ave
S 11th
St N 12th
St N 11th
St N 10th
St S
1 2th
St Nice Ave
Trouville Ave
Shanna Pl
Saint John Cir
Farroll AveDriftwood St
Stinso
n
Ct D
ove
r
Ct
S 6th
St Manhattan Ave S 8th St
S
7th
St S
9th
St
City of Grover Beach
2021/22 Transition to
District Elections
National Demographics Corp., Jan. 27, 2022
Plan 901B
Proposed Election Sequence:
2022: Districts 1 & 2
2024: Districts 3 & 4
Total Population Deviation: 7.8%
Most Latino District: 3 (30% CVAP)
©2021 CALIPER
Attachment 3
Category Field 1 2 3 4 Total
Total Population 3,209 3,292 3,193 3,045 12,739
Population Deviation 24 107 8 -140 247
Pct. Deviation 0.75% 3.36% 0.25% -4.40% 7.76%
Hispanic/Latino 26% 28% 40% 31% 31%
NH White 63% 60% 48% 57% 57%
NH Black 1% 2% 2% 1% 1%
NH Asian/Pac.Isl. 6% 7% 8% 7% 7%
NH Native Amer. 3% 2% 2% 2% 2%
Total 2,191 2,998 2,470 2,301 9,960
Hisp 17% 17% 30% 18% 21%
NH White 74% 74% 55% 78% 70%
NH Black 3% 4% 1% 0% 2%
Asian/Pac.Isl. 7% 5% 13% 4% 7%
Native Amer. 0% 2% 2% 2% 1%
Total 2,179 2,176 1,821 1,998 8,174
Latino est. 18% 16% 25% 22% 20%
Spanish-Surnamed 17% 15% 23% 21% 19%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 2% 2% 2% 2% 2%
NH White est. 79% 77% 72% 77% 76%
NH Black 2% 4% 2% 0% 2%
Total 1,809 1,835 1,472 1,694 6,810
Latino est. 14% 15% 22% 20% 18%
Spanish-Surnamed 14% 15% 21% 19% 17%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 2% 2% 2% 2% 2%
NH White est. 79% 77% 72% 77% 76%
NH Black 2% 4% 2% 0% 2%
Total 1,298 1,298 984 1,187 4,767
Latino est. 11% 13% 18% 17% 15%
Spanish-Surnamed 11% 13% 18% 17% 14%
Asian-Surnamed 2% 2% 2% 1% 2%
Filipino-Surnamed 1% 1% 2% 2% 2%
NH White est. 83% 78% 75% 79% 79%
NH Black est. 1% 4% 1% 0% 2%
age0-19 18% 22% 32% 21% 24%
age20-60 53% 57% 52% 51% 53%
age60plus 30% 21% 15% 28% 22%
immigrants 14% 8% 7% 8% 9%
naturalized 59% 50% 54% 48% 53%
english 92% 86% 64% 84% 80%
spanish 5% 9% 29% 14% 15%
asian-lang 2% 1% 7% 2% 3%
other lang 1% 4% 0% 0% 1%
Language Fluency Speaks Eng. "Less than
Very Well" 3% 1% 16% 5% 7%
hs-grad 52% 51% 58% 47% 52%
bachelor 19% 20% 18% 26% 21%
graduatedegree 12% 13% 8% 10% 11%
Child in Household child-under18 20% 25% 42% 27% 29%
Pct of Pop. Age 16+ employed 61% 72% 61% 68% 66%
income 0-25k 13% 15% 13% 18% 14%
income 25-50k 18% 15% 25% 24% 20%
income 50-75k 21% 20% 29% 14% 21%
income 75-200k 45% 42% 31% 31% 37%
income 200k-plus 3% 8% 2% 13% 6%
single family 82% 66% 67% 73% 72%
multi-family 18% 34% 33% 27% 28%
rented 36% 54% 58% 43% 49%
owned 64% 46% 42% 57% 51%
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Grover Beach - Plan 901B
2020 Census
Total Pop.

Voter Turnout
(Nov 2018)
2 4
1 3
Pismo State
Beach
Pismo State
Beach Golf
Course
Mentone Basin
Park
16th Street Park
Ramona Garden
Park
Cabril
o
Hwy
Margarita Ave
HHuston St
u
b
er St S 4th St
N 4th St
El Cam Real
Grand Ave
Front St
Oak Park Blvd
N
8th
St
16th
St
Anita Ave
Newport Ave
N
1st
St
N 2nd St
13th
St Farroll Rd
Ramona Ave
Beckett Pl
San
Sor
ento
Ct
Highland Way
Nacimiento Ave
N
5th St
N
3rd
St N 6th St
Baden Ave Marb
el a
Ct Mira
Mar
Ct
Laguna Ct
Park Ln
S
O
a
k
P
ark
Blvd
The Pike
Ocean View Ave Park View Ave
T
a
n
n
er Ln
Messina
Ct Farroll Ave
B
arc
a
St Ted
y
Bear
Ln
S 14th
St Mentone Ave Lyn
e
St
Calvin Ct
P
ark Dr
S
3rd
St Saratoga Ave S 5th St
C
o
urtlan
d
St
Atlantic City Ave
Longbranch Ave
Rockaway Ave
N
7th
St S 10th
St N
9th
St
S 16th
St Brighton Ave
B
alb
o
a
St Half Moon Bay Ct
Seabright Ave
N 11th
St N 12th
St S 11th
St S 12th
St Manhattan Ave
Shanna Pl
San Sebastian Ct Driftwood St
Nice Ave
D
ove
r
Ct
S 6th
St S
9th
St S
7th
St S
8th
St
Total Population Deviation: 7.2%
Most Latino District: 2 (29% CVAP)
City of Grover Beach
2021/22 Transition to
District Elections
National Demographics Corp., Jan. 14, 2022
Plan 904
Proposed Election Sequence:
2022: Districts 1 & 2
2024: Districts 3 & 4
©2021 CALIPER
Attachment 4
Category Field 1 2 3 4 Total
Total Population 3,255 3,251 3,207 3,026 12,739
Population Deviation 70 66 22 -159 229
Pct. Deviation 2.20% 2.07% 0.69% -4.99% 7.19%
Hispanic/Latino 23% 39% 32% 31% 31%
NH White 64% 50% 56% 58% 57%
NH Black 2% 1% 1% 1% 1%
NH Asian/Pac.Isl. 7% 6% 7% 7% 7%
NH Native Amer. 3% 2% 2% 2% 2%
Total 2,697 2,454 2,613 2,196 9,960
Hisp 12% 29% 24% 18% 21%
NH White 79% 62% 62% 79% 70%
NH Black 5% 2% 1% 0% 2%
Asian/Pac.Isl. 5% 7% 13% 2% 7%
Native Amer. 1% 2% 1% 2% 1%
Total 2,291 1,908 2,008 1,967 8,174
Latino est. 14% 24% 23% 20% 20%
Spanish-Surnamed 13% 23% 22% 19% 19%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 3% 2%
NH White est. 79% 73% 75% 77% 76%
NH Black 4% 2% 1% 1% 2%
Total 1,990 1,489 1,633 1,698 6,810
Latino est. 13% 22% 19% 18% 18%
Spanish-Surnamed 12% 21% 19% 17% 17%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 3% 2%
NH White est. 79% 73% 75% 77% 76%
NH Black 4% 2% 1% 1% 2%
Total 1,460 958 1,141 1,208 4,767
Latino est. 10% 19% 16% 15% 15%
Spanish-Surnamed 10% 19% 15% 15% 14%
Asian-Surnamed 2% 2% 1% 1% 2%
Filipino-Surnamed 1% 1% 2% 2% 2%
NH White est. 81% 76% 79% 80% 79%
NH Black est. 4% 1% 1% 1% 2%
age0-19 21% 28% 26% 22% 24%
age20-60 54% 54% 53% 51% 53%
age60plus 25% 18% 20% 27% 22%
immigrants 9% 8% 9% 8% 9%
naturalized 53% 53% 58% 47% 53%
english 87% 74% 78% 82% 80%
spanish 8% 20% 16% 16% 15%
asian-lang 1% 4% 6% 1% 3%
other lang 4% 2% 0% 0% 1%
Language Fluency Speaks Eng. "Less than
Very Well" 2% 10% 10% 6% 7%
hs-grad 50% 55% 54% 47% 52%
bachelor 22% 20% 16% 26% 21%
graduatedegree 12% 10% 12% 9% 11%
Child in Household child-under18 23% 33% 33% 27% 29%
Pct of Pop. Age 16+ employed 69% 66% 61% 67% 66%
income 0-25k 14% 13% 14% 18% 14%
income 25-50k 18% 22% 19% 24% 20%
income 50-75k 20% 23% 27% 15% 21%
income 75-200k 42% 38% 37% 31% 37%
income 200k-plus 7% 4% 4% 12% 6%
single family 72% 70% 72% 73% 72%
multi-family 28% 30% 28% 27% 28%
rented 48% 53% 50% 41% 49%
owned 52% 47% 50% 59% 51%
Housing Stats
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).

Voter Turnout
(Nov 2018)
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Grover Beach - Plan 904
2020 Census
Total Pop.

Citizen Voting Age Pop
4 2
3 1
Pismo State
Beach
Pismo State
Beach Golf
Course
Grover Heights
Park
Costa Bella Park
Ramona Garden
Park
Cabril
o
Hwy
Margarita Ave
HHuston St
u
b
er St S 4th St
N 4th St
El Cam Real
Grand Ave
Front St
Oak Park Blvd
16th
St
Anita Ave
N
1st
St
N 2nd St
Ocean View Ave
13th
St N
a
ples St Ramona Ave
Beckett Pl
Newport Ave
San
Sor
ento
Ct
Highland Way
N
8th St
Nacimiento Ave
N
5th St
N
3rd
St N 6th St Marb
el a
Ct Mira
Mar
Ct
Laguna Ct
Park Ln
S
O
a
k
P
ark
Blvd
The Pike
N 13th
St
Park View Ave
Baden Ave
S
1 6th
St
Messina
Ct Trouville Ave
B
arc
a
St Ritchie Rd Lyn
e
St
Calvin Ct
P
ark Dr
S
3rd
St Saratoga Ave S 5th St
Atlantic City Ave
Longbranch Ave
Rockaway Ave
N
7th
St S 10th
St N
9th
St S 14th
St Brighton Ave
N 14th
StB
alb
o
a
St Seabright Ave
Moss Beach Ct
N 11th
St N 10th
St N 12th
St S 11th
St Nice Ave
Mentone Ave
S 12th
St Shanna Pl
Saint John Cir
Farroll AveDriftwood St
Malibu
Ct Manhattan Ave
S 6th
St S 8th St
S
9th
St Total Population Deviation: 4.7%
Most Latino District: 3 (29% CVAP)
City of Grover Beach
2021/22 Transition to
District Elections
National Demographics Corp., Jan. 14, 2022
Plan 905
Proposed Election Sequence:
2022: Districts 1 & 2
2024: Districts 3 & 4
©2021 CALIPER
Attachment 5
Category Field 1 2 3 4 Total
Total Population 3,136 3,134 3,285 3,184 12,739
Population Deviation -49 -51 100 -1 151
Pct. Deviation -1.54% -1.60% 3.14% -0.03% 4.74%
Hispanic/Latino 23% 30% 41% 31% 31%
NH White 67% 57% 46% 58% 57%
NH Black 1% 2% 2% 1% 1%
NH Asian/Pac.Isl. 6% 8% 8% 6% 7%
NH Native Amer. 3% 2% 2% 2% 2%
Total 2,142 2,876 2,663 2,279 9,960
Hisp 12% 20% 29% 20% 21%
NH White 79% 73% 55% 77% 70%
NH Black 4% 3% 1% 1% 2%
Asian/Pac.Isl. 5% 5% 15% 2% 7%
Native Amer. 0% 2% 2% 2% 1%
Total 2,134 2,036 1,953 2,051 8,174
Latino est. 15% 17% 29% 20% 20%
Spanish-Surnamed 14% 16% 27% 19% 19%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 3% 2%
NH White est. 81% 77% 69% 77% 76%
NH Black 3% 3% 1% 1% 2%
Total 1,806 1,691 1,527 1,786 6,810
Latino est. 12% 16% 25% 18% 18%
Spanish-Surnamed 12% 15% 24% 17% 17%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 3% 2%
NH White est. 81% 77% 69% 77% 76%
NH Black 3% 3% 1% 1% 2%
Total 1,324 1,179 1,005 1,259 4,767
Latino est. 9% 14% 22% 16% 15%
Spanish-Surnamed 9% 13% 21% 15% 14%
Asian-Surnamed 2% 2% 2% 2% 2%
Filipino-Surnamed 1% 1% 2% 2% 2%
NH White est. 84% 79% 72% 80% 79%
NH Black est. 3% 3% 0% 1% 2%
age0-19 16% 24% 30% 23% 24%
age20-60 49% 58% 54% 51% 53%
age60plus 35% 18% 17% 25% 22%
immigrants 14% 7% 8% 8% 9%
naturalized 59% 47% 56% 47% 53%
english 92% 84% 69% 80% 80%
spanish 5% 12% 22% 19% 15%
asian-lang 1% 1% 8% 2% 3%
other lang 2% 3% 0% 0% 1%
Language Fluency Speaks Eng. "Less than
Very Well" 2% 3% 14% 7% 7%
hs-grad 49% 52% 56% 49% 52%
bachelor 20% 20% 18% 26% 21%
graduatedegree 12% 13% 10% 9% 11%
Child in Household child-under18 19% 28% 39% 28% 29%
Pct of Pop. Age 16+ employed 57% 71% 66% 65% 66%
income 0-25k 13% 15% 12% 17% 14%
income 25-50k 18% 15% 25% 25% 20%
income 50-75k 24% 22% 23% 17% 21%
income 75-200k 42% 40% 36% 31% 37%
income 200k-plus 3% 8% 4% 10% 6%
single family 85% 63% 67% 73% 72%
multi-family 15% 37% 33% 27% 28%
rented 32% 56% 60% 42% 49%
owned 68% 44% 40% 58% 51%
Housing Stats
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. Turnout and Registration data from California Statewide Database ("Latino" figures calculated by NDC using Census Bureau's Latino undercount by surname estimate).

Voter Turnout
(Nov 2018)
Household Income
Education (among those
age 25+)
Immigration
Age
Language spoken at
home
City of Grover Beach - Plan 905
2020 Census
Total Pop.

Citizen Voting Age Pop
Public Outreach Summary
To help encourage and facilitate resident involvement in expressing their district preferences, the City has carried out the following outreach activities since May 2021:
• Created a dedicated webpage for the districting process: groverbeach.org/districting. • Published four press releases promoting the public hearings, workshops, mapping tools and deadline to submit maps.
• Sent a citywide mailer to all Grover Beach residents that included information on the districting process, how to get involved, a paper map on the back that could be drawn on and sent back to the City, and workshop and hearing information. • Distributed three flyers promoting various upcoming hearings were virtually distributed and made available online, as well as printed and made available at various city counters and events.
• Hosted a bilingual virtual community workshop for residents to share their input on communities of interest and learn how to use the mapping tools. This was recorded and also made available on the website.
• Conducted direct phone and email outreach to community organizations, including local HOAs, to inform them of upcoming events and deadlines to submit maps. • Partnered with the South County Chambers of Commerce to leverage their connection with local businesses and community by resharing social media content and press releases.
• Created two paid Facebook advertisements promoting the community workshop and map submissions. An additional advertisement will be utilized to draw attention to the final deadline to submit maps and the final public hearing.
• Provided regular updates on the districting process and tips for getting involved have also been included in five Grover Gazette editions to date, which reaches around 2,000 people each month via email, in addition to those who access the newsletter via social media and the website.
• Published weekly social media posts about the districting process on Facebook, Instagram, Nextdoor and Twitter. To date, the cumulative reach on all platforms is 48,049 people. The cumulative post engagement is 1,211.

All materials developed for this districting process including print material and social media/online materials were produced in both English and Spanish.

Attachment 6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 28, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Bruce Buckingham, Community Development Director Janet Reese, Associate Planner
SUBJECT: Master Fee Schedule Amendment to Update Building Permit Fees

RECOMMENDATION
Adopt the Resolution amending the Master Fee Schedule to update building permit fees.

BACKGROUND
Given the relatively limited volume of building permits issued annually, the City uses contract building services rather than in-house staff to provide all building related services including the review of building plans, building inspection services and technical expertise of a Building Official. The services provided by staff are limited to administrative functions such as routing of plans to consultants and other City departments for review, entering and issuing permits, fee calculations and managing inspections.

As part of the previous Master Fee Schedule update in 2021, staff informed the Council that the City’s building permit fees for plan review and inspection services had not been updated in 20 years and are not adequate to fully cover the cost of providing building services. The City pays the current building contract provider $65 per hour for inspection services but the market rate for these services is $100 per hour. As a result, the City’s contract provider has struggled to provide experienced building inspectors and has indicated they cannot continue to provide services indefinitely without adjusting fees to reflect current service costs. Further, the below-market rates based on current fees hinder the City’s ability to hire building consultants in the future.

In fall 2021, staff contracted with ClearSource Financial Consulting (ClearSource) to provide an analysis of the City’s current costs of providing building permit related services and proposed updated fee structure known as a User and Regulatory Fee Study (reference Attachment 2).

The proposed fee updates as part of this analysis are limited to building-related services with additional updates to the City’s Master Fee Schedule brought to the Council later this spring. It should be noted that this building fee update does not include revisions to development impact fees which are the most significant building related fees for construction of new buildings and will be updated separately in early 2023.

Staff is requesting the Council conduct a public hearing and adopt the Master Fee Schedule amendment to update building related processing fees based on the findings and recommendations contained in the Fee Study. A representative from ClearSource will present the findings of the Fee Study and recommended updates. If adopted, the new fees would take effect on May 1, 2022 to allow staff to begin a Request for Proposals process immediately for a contract building services provider with a new fee structure in place.

Agenda Item No. 6
Staff Report: Building Permit Fees Update Page 2
February 28, 2022
Overview of Building Fee Study
Processing and regulatory fees are set at the direction of the City Council and the Fee Study provides information for the Council on the establishment of fees and the cost of providing the fee updates to be considered. Historically the City has based building fees for new construction on the valuation of the proposed project as provided by the International Code Council (ICC) which is the global source of model codes and standards. However, the building valuation methodology does not necessarily reflect the current local market construction costs and can vary based on the type of construction and construction materials. As a result, the Fee Study calculated fees based on the actual time it takes for building plan review and building inspection for all potential types of projects. Staff believes this approach is more accurate in providing the actual reasonable cost of providing the services to the user and for the City to receive the commensurate cost recovery.

The Fee Study assessed the current revenues collected by the City and the current costs of providing those services. In summary, the City collects approximately $285,000 annually in fee revenues with fee-related expenditures of approximately $371,000. This results in an aggregate cost recovery level of 77% and a General Fund subsidy of approximately $86,000 (reference Attachment 2 Appendix A). This cost recovery level is below the City’s goal of ensuring full cost recovery for regulatory services and the subsidy represents funding that could be used for other City services and projects but instead pay for the cost of providing building permit services.

The Fee Study provides the reasonable estimate of hours spent for plan review and inspection based on the ICC occupancy classifications that are used in the California Building Codes which are adopted by all agencies throughout the State (reference Attachment 2 Appendix A). For example, R3 is the occupancy classification used by the ICC for single family residences despite the use of this term by the City for multi-family zoning. It should be noted that the “proposed fee” column in the Fee Study does not include staff administrative costs and other required costs standard in other jurisdictions such as:
• Permit processing fee of $77 for staff costs related to permit issuance, fee calculations, and inspection scheduling.
• General Plan maintenance fee of 5% to cover costs associated with periodically updating the City’s General Plan.
• Technology and records retention fee of 5% to cover costs associated with periodically updating the City’s building software program and scanning and retaining project plans as required by State law.
• Strong motion instrumentation (seismic related) and building standards fee (green building standards) as required by State law.
• Staff review of building plans by the Community Development and Public Works Departments, and the Five Cities Fire Authority based on the size and type of project.

As previously mentioned, the City has not conducted a fee study for building related services in 20 years which has resulted in the City not fully recovering costs for these services. Given this timeframe, the proposed fee updates would result in an increase to most fees though some fees would decrease. A fee comparison indicating the existing and proposed fees for simple permits and a few common permits for a remodel, addition, and new residence are shown in Attachment

3. For example, most of the relatively simple permits (e.g., reroof, water heater replacement) would increase between $40 and $60 primarily because the City had not charged an administrative fee associated with issuing the permit and related tasks. Other examples of permit fees shown in Attachment 3 include the following:

Staff Report: Building Permit Fees Update Page 3
February 28, 2022
• Bathroom remodel would decrease approximately 19% or about $200. • Bathroom and kitchen remodel would decrease approximately 7% or about $150. • New 2,000 square foot single family residences would increase approximately 7% or about $500.
• 500 square foot residential addition would increase 22% or about $600. • 400 square foot residential remodel/alteration would increase approximately 65% or about $1,200.

As illustrated in the above examples, the fee changes vary significantly ranging from a 19% decrease to a 65% increase although the dollar amount of most increases are significantly less than $1,200. Many of the fee changes are also due to using the cost of review time as the fee methodology rather than property valuation as previously done. Most permits issued annually are for simple residential and commercial permits with an average of about 30 permits for new residences and additions in the last two years. The Fee Study provides a few examples of fee comparisons with other local cities and the proposed fees would continue to be in the mid-range in comparison to other local cities (reference Attachment 2, pages 6-8).

Fee Calculation Background
The services for which a city imposes a processing or regulatory fee typically derive from an individual person or entity’s action, request, or behavior. Therefore, except in cases where there is an overriding public benefit generated by a city’s involvement in the individual action, a fee for service ensures that the individual bears most if not all of the cost incurred by the City to provide that service. When a fee targets “100% or full cost recovery,” the individual is bearing the entirety of the cost. When a fee targets less than full cost recovery, another City revenue source – in most cases, the General Fund – ends up subsidizing the individual activity.

Industry best practices and State law are consistent in that processing and regulatory fees should be set according to the estimated reasonable cost of service. These fees should also bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and/or services provided by the city. Additionally, ongoing review and adjustment of fees provides multiple benefits, including:
• Meeting fee-payer service level expectations by collecting fees to fund the existing level of services provided.
• Avoiding fee spikes that are more likely to occur when municipalities leave fees unchanged for a multi-year period.
• Keeping fee revenue to pay for the cost of services in pace with inflation. • Increasing the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public safety services. • Providing fee payers, staff, and the Council with a pattern of consistency that provides information for forecasting and decision-making purposes.

The proposed fees are intended to comply with applicable federal, state, and local laws. This compliance includes confirmation that the proposed fees and charges are not a tax as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to the cover the reasonable costs of the City’s activities and services addressed in the fees.

Additionally, the manner in which the costs are allocated to a payor bear a fair and reasonable relationship to the payor’s burdens on, or benefits received from the activities and services provided by the City. Nearly every service for which a fee is imposed can be illustrated in the chart on the following page contrasting the components of the full cost of service, which is the maximum fee amount justified, against the local agency’s goals for cost recovery:

Staff Report: Building Permit Fees Update Page 4
February 28, 2022
Based on the consultant’s experience working with cities throughout California, it is reasonable for cities to enact full cost recovery targets (defined as 100% of the full cost of service) for development-related fees if the following conditions are met:
• Elements of the cost of service and assumptions are clearly communicated • City clearly communicates that only eligible costs are included in fees Both conditions would be met with these updated building-related fees. Lastly, the City’s Land Use Element contains a policy to incentivize energy efficiency and in 2013 the Council reduced residential permit fees by 30% for energy efficiency upgrades such as new heating systems and electric vehicle charging systems. The proposed fee updates would continue to include this incentive.

FISCAL IMPACT
Assuming historical use patterns, staff anticipates approximately $86,000 in additional General Fund revenues resulting from the proposed changes. Although the changes are anticipated to provide additional revenue, this revenue is not intended to be used to fund new services as rather it is intended to offset the costs of providing existing services that are recoverable from fees. In essence, this increase in revenues serves as a cost avoidance as these commensurate funds from the General Fund would not be needed to offset the cost of building permit services.

Annual Cost of
Service
Est. Annual
Fee Revenue
General Fund
Subsidy
Overall
Current Cost
Recovery
Annual Fee
Revenue
New Revenue
to General
Fund *
General Fund
Subsidy
Targeted Cost
Recovery *
Building (1) $371,425 $285,464 $85,961 77% $371,425 $85,961 $0 ~ 100%

DIRECT FEE-RELATED

SERVICES

PREVAILING FEES PROPOSED FEES
* Amounts shown are estimates. Actual amounts will vary based on applicant volume and project types. Most individual fees will target full cost recovery (100%), however, several minor fee categories target less than full cost recovery. Revenue impact is intended to represent a conservative estimate to allow for development and refinement of deposit tracking and billing systems.
(1) Estimated building revenues are estimated based on average annual revenues from fiscal year 2017-2018 through fiscal year 2019-20. City should monitor actual volumes and revenues to verify cost recovery levels.

Staff Report: Building Permit Fees Update Page 5
February 28, 2022

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the resolution amending the Master Fee Schedule to update building permit fees; or

2. Do not adopt the resolution amending the Master Fee Schedule; or

3. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A legal ad was published in New Times and the User and Regulatory Fee Study was made available for public review on the City’s website 10 days in advance of the hearing in accordance with State law. A copy of the agenda was sent to the Home Builders Association of the Central Coast.

Attachments

1. Resolution
Exhibit A: Building Fees

2. User and Regulatory Fee Study

3. Sample Fee Comparison - Before and After
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA AMENDING THE CITY’S MASTER FEE SCHEDULE FOR

BUILDING RELATED SERVICES
WHEREAS, Processing and Regulatory Fees are established by the City Council; and WHEREAS, the City recently completed a study to identify the cost of providing building related services; and
WHEREAS, the Processing and Regulatory Fee Study examined fee-related services provided by the City, the costs reasonably borne by the City in providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for special services; and
WHEREAS, the City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought or require the City's services by revising its schedule of fees; and
WHEREAS, the City Council hereby finds that the study provides adequate evidence to conclude that the revised fees do not exceed the cost to provide the services for which the fees are charged; and
WHEREAS, the fees and charges being increased in accordance with this resolution have been noticed in accordance with Government Code Sections 65104 and 66016; and WHEREAS, in adopting this Resolution, the City Council is taking action only on those fees for the services set forth in Exhibit “A”. The remaining fees that have not been modified from prior resolutions shall remain in full force and effect.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grover Beach as follows:

SECTION 1. INCORPORATION OF RECITALS
The City Council hereby finds the recitals set forth above are true and correct.

SECTION 2. ESTABLISHMENT AND UPDATE OF FEES, CHARGES, AND RATES The City Council hereby adopts the fees, charges, and rates as set forth in attached Exhibit "A" and incorporated by this reference.

Attachment 1
SECTION 3. EFFECTIVE DATE
Any new or adjusted fees adopted by this Resolution shall go into effect on May 1, 2022.

SECTION 4. CERTIFICATION
The City Clerk shall attest to and certify the vote adopting this resolution.

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

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN Council Members –
The foregoing RESOLUTION NO. 22-__ was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 28th day of February 2022.
**DRAFT**
______________________________

JEFF LEE, MAYOR
Attest:
________________________________
WENDI B. SIMS, CITY CLERK
City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Charge Basis Note
1 HVAC - (per unit)
a) Change-Out $81 per permit [a]
b) New $175 per permit [a]
2 Electric Car Charging $141 per permit [a]
3 Graywater System
a) No Plan Check Required $81 per permit [a]
b) Plan Check Required $175 per permit [a]
4 Insulation/Energy Upgrade $81 per permit [a]
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less $175 per permit [a]
b) Above 15kW – per kW $15 per permit
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less $1,000 per permit
b) 50kW – 250kW – Base $1,000 per permit
c) 50kW – 250kW – per kW above 50kW $7 per permit
d) Above 250kW – base $2,400 per permit
e) Above 250kW – per kW $5 per permit
7 Service Panel Upgrade $77 per permit
8 Water Heater Change-Out (same location) $54 per permit [a] 9 Water Heater Change-Out (new location) $81 per permit 10 Line Repair - Sewer / Water / Gas $77 per permit
11 Line Repair / Re-pipe $115 per permit
12 Re-Roof
a) Up to 2,000 SF (roof area) $154 per permit
b) Each Add'l 1,000 SF or fraction thereof $77 per permit 13 Demolition $77 per permit
14 Temporary Power Pole $38 per permit [b]
A. Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Sections F and G.

Activity Description
Exhibit A
City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Charge Basis Note
A. Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Sections F and G.

Activity Description
15 Swimming Pool/Spa
a) Swimming Pool / Spa $865 per permit
b) Detached Spa / Water Feature $250 per permit
c) Gunite Alteration $308 per permit
d) Equipment Change-out Only (e.g., pump) $154 per permit 16 Patio
a) Patio without M,E,P
i) Up to 200 SF $212 per permit
ii) Greater than 200 SF $298 per permit
b) Patio with M,E,P
i) Up to 200 SF $423 per permit
ii) Greater than 200 SF $500 per permit
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 $260 per permit [c]
b) Each additional $63 per permit [c]
18 Signs
a) Wall Sign $87 per permit
b) Wall Sign Illuminated $115 per permit
c) Monument Sign $173 per permit
d) Monument Sign Illuminated $231 per permit
19 Storage Racks
a) Storage Racks - First 100 LF $346 per permit
b) Storage Racks - Each Additional 100 LF $16 per permit [a] Fees have been reduced by 30% for single family residential to encourage energy savings improvements. [b] Fee applies if temporary power pole permit is requested separate from main building permit. [c] Permits required for new or alteration of windows and sliding glass doors. No permit required for retrofit windows and sliding glass doors.

Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

Residential New Construction and Room Additions
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
Residential Remodels with Structural Improvements
B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
Garage/Room Conversions and Residential Remodels without Structural Improvements B. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Occupancy Classification
Threshold
SqFt
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
1 500 $2,304 $34.13 $2,772 $75.29 $5,076 $109.42
1,000 $2,688 $21.33 $3,080 $61.60 $5,768 $82.93
5,000 $3,840 $15.36 $6,160 $49.28 $10,000 $64.64
10,000 $4,608 $7.68 $8,624 $24.64 $13,232 $32.32
20,000 $5,376 $5.76 $11,088 $18.48 $16,464 $24.24
2 500 $1,152 $172.80 $2,079 $46.20 $3,231 $219.00
1,000 $2,016 $21.60 $2,310 $57.75 $4,326 $79.35
5,000 $2,880 $11.52 $4,620 $36.96 $7,500 $48.48
10,000 $3,456 $5.76 $6,468 $18.48 $9,924 $24.24
20,000 $4,032 $4.32 $8,316 $13.86 $12,348 $18.18
3 500 $1,536 $8.53 $3,080 $13.69 $4,616 $22.22
1,000 $1,728 $6.40 $3,388 $10.27 $5,116 $16.67
5,000 $1,920 $7.68 $3,696 $12.32 $5,616 $20.00
10,000 $2,304 $3.84 $4,312 $12.32 $6,616 $16.16
20,000 $2,688 $2.88 $5,544 $9.24 $8,232 $12.12
4 Electrical Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
5 Mechanical Plan Review
and Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
6 Plumbing Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
C. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell C. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Occupancy Classification # of Units
Plan
Review
Base Fee
Fee Per
Add'l Unit
Permit
Inspection
Base Fee
Fee Per
Add'l Unit
Total
Base Fee
Fee Per
Add'l Unit Note
1 1 - 10 $2,304 $512 $7,392 $1,164 $9,696 $1,676
11 - 25 $6,912 $576 $17,864 $1,276 $24,776 $1,852
26 - 50 $14,976 $304 $35,728 $744 $50,704 $1,048
51+ Units
(each addl'l
unit)
$22,272 $228 $53,592 $558 $75,864 $786
2 Electrical Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
3 Mechanical Plan Review
and Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
4 Plumbing Plan Review and
Permittting, if Required
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
6 Tenant Improvement or
Shell
See Commerical / NonResidential Fees See Commerical / NonResidential Fees See Commerical / NonResidential Fees * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R1, R2 Occupancy
Hotel/Motel/Apartment/O
ther
New Construction / SF
Addition
D. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time.

New Construction - R1 and R2 Occupancies
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

Balcony / Carport / Patio /
Deck / Garage / Utility
Garage / Carport / Patio / Deck / Utility / Balcony
E. Building New Construction, Improvement and Alteration Fees. Fees shown in this section include permit inspection and plan review fees for new construction, improvements and alterations. Additional fees apply for permit processing, and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Additional fees are shown in Section F and Section G.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Fee Note
1 Permit Processing Fee $77
2 General Plan Maintenance Fee (percent of permit fee) 5% [a] 3 Technology Fee / Records Retention Fee (percent of permit fee) 5% 4 Strong Motion Instrumentation (SMI) Fee Calculation
a) Residential $0.50 or valuation x .00013
b) Commercial $0.50 or valuation x .00028
5 Building Standards (SB 1473) Fee Calculation (Valuation) a) $1 - $25,000 $1
b) $25,001 - $50,000 $2
c) $50,001 - $75,000 $3
d) $75,001 - $100,000 $4
e) Each Add'l $25,000 or fraction thereof Add $1
6 Temporary Certificate of Occupancy $231
Copies, Re-Print, Change Of Contractor
7 Printing Scanned / Archived Drawings $10
8 Job Card / Permit Re-Print $38
Violation Fees
9 Work Done Without Permits 2x Permit Fee
Other Fees
10 Partial Inspection / Extra Inspection Fee (per inspection) $77 11 Re-inspection Fee (3rd Time or More) (each) $77 [b]
12 Missed inspection Fee $77
13 Fees for Services Not Listed in this Fee Schedule (per 1/2 hour) $77 [a] Fee only applies to permits for new construction and additions, including signs and swimming pools. [b] Reinspection fee applies after second re-inspection.

F. Other Fees
Activity Description
Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

City of Grover Beach

MASTER FEE SCHEDULE - BUILDING FEES
Proposed Fee Charge Basis Note
1 Public Works Building Plan Review
a) No Public Works Permit Issued $82
b) Minor Projects (1-4 lots or units) $326
c) Major Projects (4 or more lots or units) $489
d) Deposit Cases $1,000 Deposit
2 Planning Building Plan Review
a) Alterations $48
b) Additions - Residential $144
c) New Residential Unit / Detached ADU $288
i) Each Additional Unit $96
d) Commercial / Industrial $1,000 Deposit
3 Plan Check Fees
a) Alternate Materials and Materials Review (per hour) $192 b) Excess Plan Review Fee (4th and subsequent) (per hour) $192 G. Building Plan Review Fees - For Services Not Identified Elsewhere In This Schedule Activity Description
When applicable, plan check fees shall be paid at the time of application for a building permit.

The plan checking fee is in addition to the building permit fee Note: Each fee listed in this schedule is based on the typical estimated time required to perform a standard service request. For service requests that are anticipated to require time and materials costs, in excess of those typically required, the Department reserves the right to bill, in advance, for Department costs anticipated to be incurred in excess of the fee shown in this schedule. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule. Fee amounts shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

User and Regulatory Fee Study
(Development Services Fees)

CITY OF GROVER BEACH
FEBRUARY 2022
TERRY MADSEN | PRINCIPAL CONSULTANT
[email protected] | 831.288.0608
7960 B Soquel Drive, Suite 363 | Aptos, California 95003 www.clearsourcefinancial.com
Attachment 2

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH

CONTENTS

REPORTING
1 TRANSMITTAL
2 EXECUTIVE SUMMARY | Overall Findings
6 REGIONAL FEE COMPARISON
9 PROJECT ORIENTATION | Scope, Guidance, Methods

APPENDICES

A COST OF SERVICE ANALYSIS

B ILLUSTRATION OF PROPOSED FEE SCHEDULE
7960 B SOQUEL DRIVE, SUITE 363 | APTOS, CALIFORNIA 95003 831.288.0608 | WWW.CLEARSOURCEFINANCIAL.COM
February 2022

CITY OF GROVER BEACH
Attn: Bruce Buckingham, Community Development Director
154 South 8th Street
Grover Beach, California 93433
User and Regulatory Fee Study
Dear Bruce:

ClearSource Financial Consulting submits the following report describing the findings of our preparation of a User and Regulatory Fee Study for the City of Grover Beach.

Please refer to the Executive Summary for the key findings of the analysis and estimated impacts to City funds. The balance of the report and its appendices provide the necessary documentation to support those outcomes.

Thank you for the opportunity to serve the City on this topic. We are happy to continue discussion on this study as the need arises or consult with you on additional topics.

Sincerely,
TERRY MADSEN, PRESIDENT | CLEARSOURCE FINANCIAL CONSULTING PHONE NUMBER: 831.288.0608
EMAIL ADDRESS: [email protected]
CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 2

EXECUTIVE SUMMARY

STUDY OVERVIEW
The City of Grover Beach has completed a User and Regulatory Fee Study. California cities regularly conduct these studies to justify fee amounts imposed and to optimize the overall portfolio of revenues available to the municipality to fund its services.

Industry practice and fiscal conditions in the state have led most cities to link cost recovery for services of individual action, cause, or benefit to that same individual through user fee revenue, relieving the agency’s general revenues as much as possible for use toward services of broader community benefit.

USER AND REGULATORY FEES
Cities derive annual revenue from a number of sources. These include, but are not limited to, property taxes, sales taxes, license fees, franchise fees, fines, rents, and user and regulatory fees. User and regulatory fees are intended to cover all, or a portion of, the costs incurred by the City for providing fee-related services and activities that are not otherwise provided to those not paying the fee.

California law provides guidance regarding the amounts the City may charge for fee-related services and activities. Specifically, in order to avoid being considered taxes, the fees charged shall not exceed the estimated reasonable cost of providing the services, activities, or materials for which fees are charged.

At its conclusion, this study proposes for City Council review and consideration at public hearing a new Schedule of User Fees and Charges for application in Fiscal Year 2021-2022 and continued update in subsequent years.

COST RECOVERY POLICY AND PRACTICE
Recovering the costs of providing fee-related services directly influences the City’s fiscal health and increases the City’s ability to meet the service level expectations of fee payers.

The services for which the City imposes a user or regulatory fee typically derive from an individual person or entity’s action, request, or behavior. Therefore, except in cases where there is an overwhelming public benefit generated by the City’s involvement in the individual action, a fee for service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that service. When a fee targets “100% or full cost recovery,” the individual is bearing the entirety of the cost. When a fee targets less than full cost recovery, another City revenue source – in most cases, the General Fund – subsidizes the individualized activity.

Generally, fees for service are targeted to full cost recovery, inclusive of operating, direct, indirect, and capital costs, except in cases where the City Council cites a public interest in lower fees. The City may also be influenced by market conditions, comparing to municipalities of similar size and service profile.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 3

EXECUTIVE SUMMARY

ILLUSTRATION OF COST RECOVERY SCENARIOS
EXHIBIT 1 | ILLUSTRATION OF COST RECOVERY SCENARIOS

COST RECOVERY

THRESHOLD

CHARACTERISTIC OF THE SERVICE / ACTION
“NONE”
No Recovery of
the Costs of
Service
• Acute interest in protecting:
- Public safety
- Integrity of City infrastructure, assets, and operations - Vulnerable populations
• Collection of fees is not feasible or cost-effective
“LOW”
Up to 50% of the
Full Cost of
Service
• The broader public benefits greatly from the individual service provided • Larger fee amounts may discourage compliance with City requirements • Market sensitivities may negatively impact demand for services deemed important to the character of the community
• City policy directs an influence on fee amounts for:
- Concern for low-income participation
- Concern for specific sectors, such as owner-occupied residences or small business
- Priority for resident participation, versus non-resident “MODERATE”
Greater than
50% of the Full
Cost of Service
• While the individual benefits greatly from service provided, public benefit or public interest in compliance/participation is present
• Factors described in lower thresholds retain some influence • Though service benefits the individual to a high degree, fee levels should be sensitive to the encouragement of current City initiatives “FULL”
100% of the Full
Cost of Service
• Service benefits the individual to a great degree
• Service is highly regulatory
• Fee amounts do not materially impact compliance or demand • Fee amounts for comparable service are in line with other regional communities
“PENALTY”
Greater than Full
Cost
• Must be a fine/penalty for non-compliance with City code CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 4

EXECUTIVE SUMMARY

FINDINGS AND PROPOSED ACTION
During the course of study, information and analysis was generated and is discussed substantively throughout this report and its technical appendices. However, summarized in the following table by broad fee category and highlighted in the subsequent findings statements, are outcomes and proposals of particular interest to City leaders and policymakers.

Primary Outcomes
Building Fees
 Current fees recover less than the City’s full cost of providing fee-related services. o The Division collects approximately $285,000 annually in fee revenues. Fee-related expenditures are approximately $371,000. This results in an aggregate cost recovery level of 77% and a General Fund subsidy of approximately $86,000.  Full cost recovery is targeted for most fees with the following exceptions:
o General Plan Maintenance Fee: Target 20% cost recovery o Technology Fee / Records Retention Fee (percent of permit fee): Target 56% of cost recovery
o Energy Saving / Conservation Upgrades: Target 70% cost recovery  The building fee schedule is proposed to be simplified to facilitate application of fees to projects and assist customers in estimating permit fees.
 Establish fixed fees for the City’s most common minor permits. This will allow applicants to estimate permit fees more easily and allow staff to administer the fee calculation and collection process more efficiently.
 Use fee methodology that results in lower fees for less complex projects and higher fees for more complex projects (i.e., establish a nexus between fees and typical service requirements).

Similar fees are collected by communities throughout the region and the State. The proposed fee amounts do not exceed the City’s cost of service and are in-range of amounts charged by other jurisdictions.

Annual Adjustment to Fees
In order to generally maintain pace with regional cost inflation, the City should adjust its fees on an annual basis. A commonly used, reasonable inflation index is the annual change in the all-urban Consumer Price Index (CPI) representative of the region.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 5

EXECUTIVE SUMMARY

IMPACT TO COST RECOVERY AND CITY FUNDS
The anticipated revenue impact of the proposed changes included in the fee schedule update is $86,000.

EXHIBIT 2| COST RECOVERY IMPACT OF PROPOSED FEE CHANGES Additional revenues expected from proposed changes to fees and charges are intended to offset the cost of providing existing services associated with those fee-related regulatory functions. Additional fee revenue is not intended to fund new services.

Fairly allocating costs to the services provided and recovering some, or all, of these costs from service recipients creates value and predictability for City customers and reimburses the City for services provided to a single party, as compared to the public at large. Collecting fees for services:
 Increases the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public safety and public works services.  Helps meet fee-payer service level expectations by collecting fees to fund the existing level of services provided.

Annual Cost of
Service
Est. Annual Fee Revenue General Fund
Subsidy
Overall
Current Cost
Recovery
Annual Fee Revenue New Revenue to General
Fund *
General Fund
Subsidy
Targeted Cost
Recovery *
Building (1) $371,425 $285,464 $85,961 77% $371,425 $85,961 $0 ~ 100%

DIRECT FEE-RELATED

SERVICES

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 6

FEE COMPARISON
The adopted and proposed fees for several common services were compared to those imposed by other agencies. The comparison showed that, depending on the service examined, Grover Beach’s fees may fall within the lower, middle, or upper range of amounts collected. This is a common finding due to the many factors that influence fees for specific services (e.g., service delivery methods, community values, organizational structure, and cost recovery goals). Comparison agencies included the cities of Arroyo Grande, Atascadero, Lompoc, Morro Bay, Pismo Beach, and San Luis Obispo. The proposed fee amounts do not exceed the City’s cost of service and are in-range of amounts charged by other jurisdictions.

Comparison charts are provided on the following pages.
* Amounts shown include permit fee and permit issuance fee.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 7

FEE COMPARISON
* Amounts shown include permit fee and permit issuance fee. * Amounts shown include permit fee and permit issuance fee.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 8

FEE COMPARISON
* Amounts shown include plan check and inspection permit fee only.

SCOPE OF STUDY
The City of Grover Beach has completed a User and Regulatory Fee Study, which represents an external review of prevailing practices and development of a new Schedule of User Fees and Charges. ClearSource Financial Consulting has prepared this analysis during Fiscal Year 2021-2022 and will be available to answer questions as the City proceeds in implementing findings as it chooses.

Key tasks expected by the City from this study included the following:
 Review eligible fee-related services for the City’s Building Department to establish the reasonable relationship between current fees for service and the underlying costs of service.  Calculate the full cost of service, including estimated citywide overhead costs.  Recommend fees to be charged for each service.
 Recommend cost recovery strategies and best practices in setting fees, while considering the complexities and demands of responsible programs or departments.  Identify new fees and/or revenue sources for eligible services, where discovered and applicable.  Identify underlying billable rates for cost recovery opportunities and as the basis for user fees.  Maintain a thoroughly documented analysis to ensure compliance with Proposition 26, and other statutes, as applicable.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 9

PROJECT ORIENTATION

DIRECT SERVICES UNDER REVIEW
Fee Categories
City fees under review in this project focused on direct services eligible for user fee methodology, as listed in the City’s published fee schedules. Additionally, the project was tasked with identifying any relevant additions for services performed without a fee or for under-quantified or ineffectively structured fees.

Current services shown in the City’s various prevailing fee schedules and addressed in this study are summarized as follows:
 Building – Services include building permits for construction and sub-trades.

REASON FOR STUDY
Cities derive annual revenue from a number of sources. These include, but are not limited to, property taxes, sales taxes, franchise fees, fines, rents, and user and regulatory fees. User and regulatory fees are intended to cover all, or a portion of, the costs incurred by a city for providing fee-related services and activities that are not otherwise provided to those not paying the fee.

California cities regularly conduct fee studies to justify fee amounts imposed and to optimize the overall body of revenues available to the municipality to fund its services. Widespread industry practice and fiscal conditions in the state have led most cities to link cost recovery for services of individual action, cause, or benefit to that individual through user fee revenue, relieving the agency’s general revenues for services of broader community benefit.

PREVAILING GUIDANCE
The objectives of this study, the methodology used to complete the study, and the formulation of outcomes and recommendations for future consideration were significantly influenced by Article 13C of the California Constitution and Section 66014 of the California Government Code.

Article 13C states that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the payer’s burdens on, or benefits received from, the governmental activity. Additionally, Article 13C identifies the following as items that are not defined as taxes:
 A charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.  A charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 10

PROJECT ORIENTATION
 A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.  A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
 A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law.
 A charge imposed as a condition of property development.  Assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Section 66014(a) of the California Government Code includes the following, “Notwithstanding any other provision of law, when a local agency charges fees for zoning variances; zoning changes; use permits; building inspections; building permits; …the processing of maps under the provisions of the Subdivision Map Act…; or planning services…; those fees may not exceed the estimated reasonable cost of providing the service for which the fee is charged, unless a question regarding the amount of the fee charged in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.

The outcomes and recommendations of the study are intended to comply with applicable federal, state, and local laws including providing confirmation that the proposed fees (“charges”) recommended as a result of this study are not taxes as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to the cover the reasonable costs of the City’s activities and services addressed in the fees. Additionally, this report is intended to show that the manner in which the costs are allocated to a payer bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and services provided by the City.

METHODOLOGY AND DATA SOURCES
This study calculated the estimated reasonable cost of providing various fee-related services across the City organization. Generally, the estimated reasonable cost of providing the fee-related services and activities examined in this study can be calculated as the product of the composite fully-burdened hourly labor rate of the division responsible for providing services and the estimated labor time required to process a typical request for service.

The composite fully-burdened hourly rates calculated in this study are based on the estimated annual hours spent providing fee related services, and estimated labor, services and supplies, and citywide overhead expenditures, sourced as follows:
 Estimated annual hours spent providing fee related services were developed based on interviews with City staff and are in-line with typical direct service ratios experienced by the consultant via studies of similar municipalities throughout California.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 11

PROJECT ORIENTATION
 Labor expenditures for in-house personnel were based on the City’s most recently adopted salary schedules.
 Contract service costs are based on historical spending for City contract service providers and current market rates for similar services provided within the region.  All other services and supplies expenditures were based on budgeted expenditures.  For purposes of estimating the full cost of service, a reasonable, conservative, allocation of central service costs to direct service departments was developed that yields Citywide indirect rates to inform this analysis.
 Estimated labor times were developed based on responses from the staff primarily responsible for the provision of services examined in the study. Commonly used industry data also aided in the development of time estimates and proposed fee structures.

Once cost of service levels are identified, the City may use this information to inform targeted cost recovery from fees. Fees set at the cost of service target full cost recovery. Fees set at any amount less than the cost of service target less than full cost recovery.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 12

PROJECT ORIENTATION
An illustration of the methods used in this analysis is shown below.

EXHIBIT 3 | STEPS IN ANALYZING COSTS OF SERVICE AND USER FEES CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 13

PROJECT ORIENTATION

CONSIDERATIONS FOR IMPLEMENTATION
If the City decides to adopt or otherwise utilize outcomes generated through this study, it should:
 Update Systems for Fee Outcomes – Ensure that City staff begin using updated fees and associated outcomes once the updated schedule of fees becomes effective. Values should be included in all official fee schedules used throughout the City (e.g., departmental pamphlets, counter schedules, and online information). Additionally, ensure collections processes are updated, which may include coding in billing systems and training for personnel who handle fees directly with the public.  Actively Monitor the Use of Fees – In order to recover accurate and eligible amounts expected, the City should be diligent about tracking time to projects and ensuring fees are applied in the correct amount and using the correct and intended basis.
 Monitor Feedback and Permit Statistics – Monitor permit and application volume and applicant feedback to determine if fee modifications are resulting in any unanticipated changes in project frequency and to increase the level of detail available for revenue forecasting.  Annually Review and Adjust Fee Values – In order to generally maintain pace with regional cost inflation and/or the City’s salary cost inflation, the City should adjust its fees on an annual basis. A commonly used, reasonable inflation index is the annual change in the all-urban Consumer Price Index (CPI) representative of the region.
 Periodically Perform Comprehensive Analysis – A comprehensive fee study should be conducted periodically (e.g., every three to five years) to ensure fee levels remain at or below legal limits and are consistent with evolving service practices and local conditions.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 14

APPENDIX A

COST OF SERVICE ANALYSIS
Cost of Service Analysis
Building and Construction Review Fees
City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Building
Labor Expenditures
Description Total Notes
Salaries, Wages, and Benefits $ 118,990
Contract Services (Building Inspection and Plan Check) $ 175,000 Total $ 293,990
Recurring Non-Labor Expenditures
Description Total Adjustments Subtotal Notes
01-144-Building
Supplies - Operating $ 300 $ - $ 300
Dues and Subscriptions $ 200 $ - $ 200
Account 52010 $ - $ -
Copying - Allocated $ 200 $ - $ 200
Printing and Copying $ 1,200 $ - $ 1,200
Account 52101 $ - $ -
Telephone $ 500 $ - $ 500
Postage and Shipping $ 650 $ - $ 650
Small Tools and Equipment $ 100 $ - $ 100
Services - Building $ 175,000 $ (175,000) $ -
Services - Engineering $ 10,000 $ (10,000) $ -
Services - Development Applications $ - $ -
City Engineer - Cost Recovery $ - $ -
Services - Fire $ 10,000 $ (10,000) $ -
Contractual Obligations $ 30,000 $ (30,000) $ -
Subtotal $ 228,150 $ (225,000) $ 3,150
Allocation of Central Services
Description
Est C'wide
Indirect Rate
Mod.

Expenses
Allocated
Citywide
Overhead Notes
Allocation of Citywide Overhead 25% $ 297,140 $ 74,285 [a] City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Building
Total Initial Allocation
Description Total Share
Labor Expenditures & Contract Svc Support $ 293,990 79% Recurring Non-Labor $ 3,150 1%
Allocation of Citywide Overhead $ 74,285 20%
Total $ 371,425 100%
Calculation of Fully-Burdened Hourly Rate
Description Allocation Labor Non-Labor
C'wide
Overhead Total
Targeted
Recovery from
Fees
Amount
Recoverable
from Fees
Indirect
General Administration and Management 15% $ 44,099 $ 473 $ 11,143 $ 55,714 100% $ 55,714 Certification and Training 1% $ 2,940 $ 32 $ 743 $ 3,714 100% $ 3,714 Code, Policies, and Procedures Update 2% $ 5,880 $ 63 $ 1,486 $ 7,429 100% $ 7,429 Public Info - Dev Related w/out active app 17% $ 49,978 $ 536 $ 12,628 $ 63,142 100% $ 63,142 Direct Hours
Building Prmt, Plan Rvw, Inspection 65% $ 191,094 $ 2,048 $ 48,285 $ 241,426 100% $ 241,426 Total 100% $ 293,990 $ 3,150 $ 74,285 $ 371,425 100% $ 371,425 Cost Recovery Analysis
Description
2017-18
ACTUAL
2018-19
ACTUAL
2019-20
ACTUAL
Multi-Year
Average Notes
Construction Permits $185,736 $260,317 $220,808 $222,287 Plan Check Fees - Building $36,627 $48,791 $104,115 $63,178 Building $222,363 $309,108 $324,923 $285,464
Description Total
Revenues $285,464
Expenses $371,425
Cost Recovery 77%
[a] Amount intended to represent a reasonable conservative estimate of Citywide overhead allocation.

City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Labor Expenditures
Description Total Notes
Salaries, Wages, and Benefits $ 118,990
Contract Services (Building Inspection and Plan Check) $ 175,000 Total $ 293,990
Recurring Non-Labor Expenditures
Description Total Adjustments Subtotal Notes
01-144-Building
Supplies - Operating $ 300 $ - $ 300
Dues and Subscriptions $ 200 $ - $ 200
Account 52010 $ - $ -
Copying - Allocated $ 200 $ - $ 200
Printing and Copying $ 1,200 $ - $ 1,200
Account 52101 $ - $ -
Telephone $ 500 $ - $ 500
Postage and Shipping $ 650 $ - $ 650
Small Tools and Equipment $ 100 $ - $ 100
Services - Building $ 175,000 $ (175,000) $ -
Services - Engineering $ 10,000 $ (10,000) $ -
Services - Development Applications $ - $ -
City Engineer - Cost Recovery $ - $ -
Services - Fire $ 10,000 $ (10,000) $ -
Contractual Obligations $ 30,000 $ (30,000) $ -
Subtotal $ 228,150 $ (225,000) $ 3,150
Allocation of Central Services
Description
Est C'wide
Indirect Rate
Mod.

Expenses
Allocated
Citywide
Overhead Notes
Allocation of Citywide Overhead 25% $ 297,140 $ 74,285 [a] City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Total Initial Allocation
Description Total
Allocation
Share
Labor Expenditures & Contract Svc Support $ 293,990 79% Recurring Non-Labor $ 3,150 1%
Citywide Overhead $ 74,285 20%
Total $ 371,425 100%
Calculation of Fully-Burdened Hourly Rate
Description Allocation Labor Non-Labor
C'wide
Overhead Total
Targeted
Recovery from
Fees
Amount
Recoverable
from Fees
Targeted
Hourly Rate
Indirect
General Administration and Management 15% $ 44,099 $ 473 $ 11,143 $ 55,714 100% $ 55,714 $ 25 Certification and Training 1% $ 2,940 $ 32 $ 743 $ 3,714 100% $ 3,714 $ 2 Code, Policies, and Procedures Update 2% $ 5,880 $ 63 $ 1,486 $ 7,429 100% $ 7,429 $ 3 Public Info - Dev Related w/out active app 17% $ 49,978 $ 536 $ 12,628 $ 63,142 100% $ 63,142 $ 28 Direct Hours
Building Prmt, Plan Rvw, Inspection 65% $ 191,094 $ 2,048 $ 48,285 $ 241,426 100% $ 241,426 $ 108 Total 100% $ 293,990 $ 3,150 $ 74,285 $ 371,425 100% $ 371,425 $ 167 Direct Hours 2,230
Estimate for Ongoing Contract Service Rates
Description Contract Rate
Contract Rate
as % of Total
Fee
FullyBurdened
Hourly Rate Notes
Permit and Inspection $100 65% $154 [b]
Plan Check $125 65% $192 [b]
Total Hours Estimate
Description FTE Total Hours
Less: Adjust
for Leave
Productive
Hours Notes
FTE 1.00 2,080 (240) 1,840
Contract Services (Equivalent FTE) 1,591 - 1,591
Total 1.00 3,431
Indirect 1,201
Direct 2,230
Total 3,431
City of Grover Beach
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Building
Allocation of Direct Hours
Description Share Total Hours Recovery Notes
Permit and Inspection 70% 1,561 $240,170
Plan Check 30% 669 $128,663
Total 100% 2,230 $368,833
[a] Amount intended to represent a reasonable conservative estimate of Citywide overhead allocation. [b] Contract rate based on consultant estimate of current typical service rates for contractual service agreements. Amount is consistent with 2021 agreement recently signed by City of Paso Robles.

City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - Technology Enhancement Fee
Estimated Expenditures
# Description Total
Amortization /
Update Frequency Annual Cost Notes
1 Initial Outlay for Enhanced Permit/Project Tracking $100,000 10 $ 10,000 [a] 2 Initial Upgrades to Hardware (e.g. monitor, computers) $25,000 5 $ 5,000 [a] 3 On-going Licensing & Consulting Support $5,000 1 $ 5,000 [a] 4 Total $130,000 $ 20,000
Estimated Base for Revenue
# Acct Desc Total
5 Building Permits $222,287
6 $ 222,287
Calculation of Fee at Full Cost Recovery
# Description Total
7 Annual Revenue Requirement $ 20,000
8 Estimated Annual Permit Fees $ 222,287
9 Technology Fee as a Percent of Permit Fee 9%
Cost Recovery Analysis
# Description Current Fee
Fee at Full Cost
Recovery Proposed Fee Notes
10 Technology Enhancement Fee 5% 9% 5%
Revenue Analysis
# Description Current Revenue
Revenue at Full
Cost Recovery
Revenue at
Targeted Fee
GF Subsidy at
Current Fee
GF Subsidy at
Proposed Fee
11 Technology Enhancement Fee $5,232 $20,000 $11,114 $14,768 $8,886 12 Cost Recovery % 56%
[a] Useful life and ongoing licensing costs, and annual revenues estimated by ClearSource. Amounts are intended to represent reasonable estimates.

City of Grover Beach
User and Regulatory Fee Study
Cost Recovery Analysis - General Plan Maintenance Fee
Estimated Expenditures
# Description Total
Amortization /
Update Frequency Annual Cost Notes
1 General Plan Update - Consulting Costs $750,000 20 $ 37,500 [a] 1 General Plan Update - City Staff Costs $187,500 20 $ 9,375 [a] 2 Housing Element $20,000 4 $ 5,000 [a]
3 Zoning Code $5,000 1 $ 5,000 [a]
4 Total $962,500 $ 56,875
Estimated Base for Revenue
# Account Total
5 Building Permits $222,287
6 Total $ 222,287
Calculation of Fee at Full Cost Recovery
# Description Total
7 Annual Revenue Requirement $ 56,875
8 Estimated Annual Permit Fees $ 222,287
9 General Plan Maintenance Fee as a % of Permit Fee 26% Cost Recovery Analysis
# Description Current Fee
Fee at Full Cost
Recovery Proposed Fee
10 General Plan Maintenance Fee 5% 26% 5%
Revenue Analysis
# Description Current Revenue
Revenue at Full
Cost Recovery
Revenue at
Targeted Fee
GF Subsidy at
Current Fee
GF Subsidy at
Proposed Fee
11 General Plan Maintenance Fee $8,248 $56,875 $11,114 $48,627 $45,761 12 Cost Recovery % 20%
[a] Costs and useful life estimated by ClearSource. Amounts are intended to represent conservative, reasonable, estimates.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate $154 $154 $154 $192 $192 $192
Fee Description
City Permit
Inspection
Contract
Permit
Inspection
Total Permit
Inspection
City Plan
Review
Contract Plan
Review
Total Plan
Review Total
1 HVAC - (per unit)
a) Change-Out 0.75 0.75 0.00 0.75
b) New 1.00 1.00 0.50 0.50 1.50
2 Electric Car Charging 1.00 1.00 0.25 0.25 1.25
3 Graywater System
a) No Plan Check Required 0.75 0.75 0.00 0.75
b) Plan Check Required 1.00 1.00 0.50 0.50 1.50
4 Insulation/Energy Upgrade 0.75 0.75 0.00 0.75
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less 1.00 1.00 0.50 0.50 1.50
b) Above 15kW – per kW
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less
b) 50kW – 250kW – Base
c) 50kW – 250kW – per kW above 50kW
d) Above 250kW – base
e) Above 250kW – per kW
7 Service Panel Upgrade 0.50 0.50 0.00 0.50
8 Water Heater Change-Out (same location) 0.50 0.50 0.00 0.50 9 Water Heater Change-Out (new location) 0.75 0.75 0.00 0.75 10 Line Repair - Sewer / Water / Gas 0.50 0.50 0.00 0.50 11 Line Repair / Re-pipe 0.75 0.75 0.00 0.75
12 Re-Roof
a) Up to 2,000 SF (roof area) 1.00 1.00 0.00 1.00
b) Each Add'l 1,000 SF or fraction thereof 0.50 0.50 0.00 0.50 13 Demolition 0.50 0.50 0.00 0.50
14 Temporary Power Pole 0.25 0.25 0.00 0.25
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
1 HVAC - (per unit)
a) Change-Out
b) New
2 Electric Car Charging
3 Graywater System
a) No Plan Check Required
b) Plan Check Required
4 Insulation/Energy Upgrade
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less
b) Above 15kW – per kW
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less
b) 50kW – 250kW – Base
c) 50kW – 250kW – per kW above 50kW
d) Above 250kW – base
e) Above 250kW – per kW
7 Service Panel Upgrade
8 Water Heater Change-Out (same location)
9 Water Heater Change-Out (new location)
10 Line Repair - Sewer / Water / Gas
11 Line Repair / Re-pipe
12 Re-Roof
a) Up to 2,000 SF (roof area)
b) Each Add'l 1,000 SF or fraction thereof
13 Demolition
14 Temporary Power Pole
Cost of Svc Current Fee*
Current Cost
Recovery
Proposed
Cost Recovery
Proposed
Fee* Note
$115 $92 80% 70% $81 [a]
$250 0% 70% $175 [a]
$202 $159 79% 70% $141 [a]
$115 $92 80% 70% $81 [a]
$250 $204 82% 70% $175 [a]
$115 $92 80% 70% $81 [a]
$250 $204 82% 70% $175 [a]
$15
$500 deposit $1,000
$500 deposit $1,000
$7
$500 deposit $2,400
$5
$77 $118 153% 100% $77
$77 $90 117% 70% $54 [a]
$115 $118 102% 70% $81 [a]
$77 $118 153% 100% $77
$115 varies 100% $115
$154 $189 82% 100% $154
$77 100% $77
$77 $157 204% 100% $77
$38 $118 307% 100% $38 [b]
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate $154 $154 $154 $192 $192 $192
Fee Description
City Permit
Inspection
Contract
Permit
Inspection
Total Permit
Inspection
City Plan
Review
Contract Plan
Review
Total Plan
Review Total
15 Swimming Pool/Spa
a) Swimming Pool / Spa 2.50 2.50 2.50 2.50 5.00
b) Detached Spa / Water Feature 1.00 1.00 0.50 0.50 1.50 c) Gunite Alteration 2.00 2.00 0.00 2.00
d) Equipment Change-out Only (e.g., pump) 1.00 1.00 0.00 1.00 16 Patio
a) Patio without M,E,P
i) Up to 200 SF 0.75 0.75 0.50 0.50 1.25
ii) Greater than 200 SF 1.00 1.00 0.75 0.75 1.75
b) Patio with M,E,P
i) Up to 200 SF 1.50 1.50 1.00 1.00 2.50
ii) Greater than 200 SF 2.00 2.00 1.00 1.00 3.00
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 0.75 0.75 0.75 0.75 1.50
b) Each additional 0.25 0.25 0.13 0.13 0.38
18 Signs
a) Wall Sign 0.25 0.25 0.25 0.25 0.50
b) Wall Sign Illuminated 0.33 0.33 0.33 0.33 0.67
c) Monument Sign 0.50 0.50 0.50 0.50 1.00
d) Monument Sign Illuminated 0.67 0.67 0.67 0.67 1.34
19 Storage Racks
a) Storage Racks - First 100 LF 1.00 1.00 1.00 1.00 2.00 b) Storage Racks - Each Additional 100 LF 0.00 0.08 0.08 0.08 [a] Fees have been reduced by 30% for single family residential to encourage energy savings improvements. [b] Fee applies if temporary power pole permit is requested separate from main building permit. [c] Permits required for new or alteration of windows and sliding glass doors. No permit required for retrofit windows and sliding glass doors. * Fees for Commonly Requested Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees). Additional fees apply for permit processing and services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies (e.g. State of California). Examples of additional fees are shown in Sections G and H of the fee schedule.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
15 Swimming Pool/Spa
a) Swimming Pool / Spa
b) Detached Spa / Water Feature
c) Gunite Alteration
d) Equipment Change-out Only (e.g., pump)
16 Patio
a) Patio without M,E,P
i) Up to 200 SF
ii) Greater than 200 SF
b) Patio with M,E,P
i) Up to 200 SF
ii) Greater than 200 SF
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5
b) Each additional
18 Signs
a) Wall Sign
b) Wall Sign Illuminated
c) Monument Sign
d) Monument Sign Illuminated
19 Storage Racks
a) Storage Racks - First 100 LF
b) Storage Racks - Each Additional 100 LF
Cost of Svc Current Fee*
Current Cost
Recovery
Proposed
Cost Recovery
Proposed
Fee* Note
$865 100% $865
$250 100% $250
$308 100% $308
$154 100% $154
$212 varies 100% $212
$298 varies 100% $298
$423 varies 100% $423
$500 varies 100% $500
$260 100% $260 [c]
$63 100% $63 [c]
$87 $102 100% $87
$115 $122 106% 100% $115
$173 varies 100% $173
$231 varies 100% $231
$346 100% $346
$16 100% $16
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential New Construction and Room Additions
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 3.00 7.00 $192 $154 $576 $1,078 varies varies varies varies 200 3.00 8.00 $192 $154 $576 $1,232 varies varies varies varies 300 3.00 8.50 $192 $154 $576 $1,309 varies varies varies varies 400 3.50 9.00 $192 $154 $672 $1,386 varies varies varies varies 500 4.00 9.50 $192 $154 $768 $1,463 varies varies varies varies 1,000 5.00 12.00 $192 $154 $960 $1,848 varies varies varies varies 1,500 6.00 14.00 $192 $154 $1,152 $2,156 varies varies varies varies 2,000 8.00 16.00 $192 $154 $1,536 $2,464 varies varies varies varies 2,500 10.00 20.00 $192 $154 $1,920 $3,080 varies varies varies varies 3,000 12.00 24.00 $192 $154 $2,304 $3,696 varies varies varies varies 4,000 14.00 28.00 $192 $154 $2,688 $4,312 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential New Construction and Room Additions
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
1,500
2,000
2,500
3,000
4,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
R3 - Single-Family, Duplex,
Additional Dwelling Units
New Construction and
Room Additions
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$576 $1,078 $1,654 $0
$576 $1,232 $1,808 $0
$576 $1,309 $1,885 $0
$672 $1,386 $2,058 $0
$768 $38 $1,463 $77 $2,231 $115
$960 $38 $1,848 $62 $2,808 $100
$1,152 $77 $2,156 $62 $3,308 $138
$1,536 $77 $2,464 $123 $4,000 $200
$1,920 $77 $3,080 $123 $5,000 $200
$2,304 $38 $3,696 $62 $6,000 $100
$2,688 $29 $4,312 $46 $7,000 $75
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential Remodels with Structural Improvements
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 2.00 4.50 $192 $154 $384 $693 varies varies varies varies 200 2.25 5.75 $192 $154 $432 $886 varies varies varies varies 300 2.50 6.75 $192 $154 $480 $1,040 varies varies varies varies 400 2.75 7.50 $192 $154 $528 $1,155 varies varies varies varies 500 3.25 8.25 $192 $154 $624 $1,271 varies varies varies varies 1,000 3.75 10.00 $192 $154 $720 $1,540 varies varies varies varies 1,500 4.50 10.50 $192 $154 $864 $1,617 varies varies varies varies 2,000 6.00 12.00 $192 $154 $1,152 $1,848 varies varies varies varies 2,500 7.50 15.00 $192 $154 $1,440 $2,310 varies varies varies varies 3,000 9.00 18.00 $192 $154 $1,728 $2,772 varies varies varies varies 4,000 10.50 21.00 $192 $154 $2,016 $3,234 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Residential Remodels with Structural Improvements
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
1,500
2,000
2,500
3,000
4,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
R3 - Single-Family, Duplex,
Additional Dwelling Units
Residential Remodels with
Structural Improvements
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$384 $693 $1,077 $0
$432 $886 $1,318 $0
$480 $1,040 $1,520 $0
$528 $1,155 $1,683 $0
$624 $19 $1,271 $54 $1,895 $73
$720 $29 $1,540 $15 $2,260 $44
$864 $58 $1,617 $46 $2,481 $104
$1,152 $58 $1,848 $92 $3,000 $150
$1,440 $58 $2,310 $92 $3,750 $150
$1,728 $29 $2,772 $46 $4,500 $75
$2,016 $22 $3,234 $35 $5,250 $56
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage/Room Conversions and Residential Remodels without Structural Improvements Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 1.00 2.00 $192 $154 $192 $308 varies varies varies varies 200 1.50 3.50 $192 $154 $288 $539 varies varies varies varies 300 1.75 5.00 $192 $154 $336 $770 varies varies varies varies 400 2.00 6.00 $192 $154 $384 $924 varies varies varies varies 500 2.25 7.00 $192 $154 $432 $1,078 varies varies varies varies 1,000 2.50 8.00 $192 $154 $480 $1,232 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
3 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
4 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
* Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage/Room Conversions and Residential Remodels without Structural Improvements Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
R3 - Single-Family, Duplex,
Additional Dwelling Units
Garage/Room Conversions
and Residential Remodels
without Structural
Improvements
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$192 $308 $500 $0
$288 $539 $827 $0
$336 $770 $1,106 $0
$384 $924 $1,308 $0
$432 $10 $1,078 $31 $1,510 $40
$480 $7 $1,232 $23 $1,712 $30
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 500 12.00 18.00 $192 $154 $2,304 $2,772 varies varies varies varies 1,000 14.00 20.00 $192 $154 $2,688 $3,080 varies varies varies varies 5,000 20.00 40.00 $192 $154 $3,840 $6,160 varies varies varies varies 10,000 24.00 56.00 $192 $154 $4,608 $8,624 varies varies varies varies 20,000 28.00 72.00 $192 $154 $5,376 $11,088 varies varies varies varies 2 500 6.00 13.50 $192 $154 $1,152 $2,079 varies varies varies varies 1,000 10.50 15.00 $192 $154 $2,016 $2,310 varies varies varies varies 5,000 15.00 30.00 $192 $154 $2,880 $4,620 varies varies varies varies 10,000 18.00 42.00 $192 $154 $3,456 $6,468 varies varies varies varies 20,000 21.00 54.00 $192 $154 $4,032 $8,316 varies varies varies varies 3 500 8.00 20.00 $192 $154 $1,536 $3,080 varies varies varies varies 1,000 9.00 22.00 $192 $154 $1,728 $3,388 varies varies varies varies 5,000 10.00 24.00 $192 $154 $1,920 $3,696 varies varies varies varies 10,000 12.00 28.00 $192 $154 $2,304 $4,312 varies varies varies varies 20,000 14.00 36.00 $192 $154 $2,688 $5,544 varies varies varies varies 4 Electrical Plan Review and
Permittting, if Required
varies varies varies varies
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate
Occupancy Classification
Threshold
SqFt
1 500
1,000
5,000
10,000
20,000
2 500
1,000
5,000
10,000
20,000
3 500
1,000
5,000
10,000
20,000
4 Electrical Plan Review and
Permittting, if Required
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Storage
New Construction / SF
Addition
A, B, E, F, H, I, M, R1, R2,
R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Tenant Improvement
A, B, E, F, H, I, M, R4, S -
Assembly; Business; Care /
Assisted Living;
Educational;
Factory; Hazard;
Institutional; Mercantile;
Hotel/Motel; Apartment;
Storage
Shell
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$2,304 $34.13 $2,772 $75.29 $5,076 $109.42
$2,688 $21.33 $3,080 $61.60 $5,768 $82.93
$3,840 $15.36 $6,160 $49.28 $10,000 $64.64
$4,608 $7.68 $8,624 $24.64 $13,232 $32.32
$5,376 $5.76 $11,088 $18.48 $16,464 $24.24
$1,152 $172.80 $2,079 $46.20 $3,231 $219.00
$2,016 $21.60 $2,310 $57.75 $4,326 $79.35
$2,880 $11.52 $4,620 $36.96 $7,500 $48.48
$3,456 $5.76 $6,468 $18.48 $9,924 $24.24
$4,032 $4.32 $8,316 $13.86 $12,348 $18.18
$1,536 $8.53 $3,080 $13.69 $4,616 $22.22
$1,728 $6.40 $3,388 $10.27 $5,116 $16.67
$1,920 $7.68 $3,696 $12.32 $5,616 $20.00
$2,304 $3.84 $4,312 $12.32 $6,616 $16.16
$2,688 $2.88 $5,544 $9.24 $8,232 $12.12
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
5 Mechanical Plan Review
and Permittting, if Required
varies varies varies varies
6 Plumbing Plan Review and
Permittting, if Required
varies varies varies varies
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
varies varies varies varies
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees. 11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Commercial / Non-Residential - New Construction, Tenant Improvement, and Shell Time Estimate
Occupancy Classification
Threshold
SqFt
5 Mechanical Plan Review
and Permittting, if Required
6 Plumbing Plan Review and
Permittting, if Required
7 Production Phase Units /
Identical Buildings /
Duplicate Stock
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
New Construction - R1 and R2 Occupancies
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification # of Units
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 1 - 10 12.00 48.00 $192 $154 $2,304 $7,392 varies varies varies varies 11 - 25 36.00 116.00 $192 $154 $6,912 $17,864 varies varies varies varies 26 - 50 78.00 232.00 $192 $154 $14,976 $35,728 varies varies varies varies 51+ Units
(each addl'l
unit)
116.00 348.00 $192 $154 $22,272 $53,592 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
6 Tenant Improvement or
Shell
[a] For identical buildings built by the same builder on the same lot or in the same tract and for which building permits are issued at the same time. * Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

R1, R2 Occupancy
Hotel/Motel/Apartment/
Other
New Construction / SF
Addition
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
New Construction - R1 and R2 Occupancies
Time Estimate
Occupancy Classification # of Units
1 1 - 10
11 - 25
26 - 50
51+ Units
(each addl'l
unit)
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
5 Production Phase Units /
Identical Buildings /
Duplicate Stock
6 Tenant Improvement or
Shell
R1, R2 Occupancy
Hotel/Motel/Apartment/
Other
New Construction / SF
Addition
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l Unit
Permit
Inspection
Base Fee
Fee Per
Add'l Unit
Total
Base Fee
Fee Per
Add'l Unit Note
$2,304 $512 $7,392 $1,164 $9,696 $1,676
$6,912 $576 $17,864 $1,276 $24,776 $1,852
$14,976 $304 $35,728 $744 $50,704 $1,048
$22,272 $228 $53,592 $558 $75,864 $786
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
10% of Base Plan Review
Fee for Master Unit
Same as Above 10% of Base Plan Review
Fee;
100% of Base Permit
Inspection Fee
[a]
See Commerical / NonResidential Fees See Commerical / NonResidential Fees See Commerical / NonResidential Fees City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage / Carport / Patio / Deck / Utility / Balcony
Time Estimate Hrly Rate Hrly Rate Cost of Service Current Fee Current Cost Recovery Proposed Fee Occupancy Classification
Threshold
SqFt
Total Plan
Review
Total
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
Plan
Review
Permit
Inspection
1 100 1.00 1.50 $192 $154 $192 $231 varies varies varies varies 200 1.25 1.75 $192 $154 $240 $270 varies varies varies varies 300 1.50 2.00 $192 $154 $288 $308 varies varies varies varies 400 1.75 2.50 $192 $154 $336 $385 varies varies varies varies 500 2.00 3.00 $192 $154 $384 $462 varies varies varies varies 1,000 2.25 5.50 $192 $154 $432 $847 varies varies varies varies 2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
* Plan review fees include up to three plan checks. The City will bill hourly for additional plan review required. ** Amounts exclude City of Grover Beach standard permitting fees and State of California fees.

Garage / Carport / Patio /
Deck / Utility / Balcony
11%
11%
11%
City of Grover Beach
User and Regulatory Fee Study
Cost of Service Calculation - Building
Garage / Carport / Patio / Deck / Utility / Balcony
Time Estimate
Occupancy Classification
Threshold
SqFt
1 100
200
300
400
500
1,000
2 Electrical Plan Review and
Permittting, if Required
3 Mechanical Plan Review
and Permittting, if Required
4 Plumbing Plan Review and
Permittting, if Required
Garage / Carport / Patio /
Deck / Utility / Balcony
Proposed Fee Proposed Fee Proposed Fee
Plan
Review
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Permit
Inspection
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof
Total
Base Fee
Fee Per
Add'l 100 SF
or Fraction
Thereof Note
$192 $231 $423 $0
$240 $270 $510 $0
$288 $308 $596 $0
$336 $385 $721 $0
$384 $10 $462 $77 $846 $87
$432 $2 $847 $19 $1,279 $22
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
11% of Base Plan Review
Fee
11% of Base Permit
Inspection Fee
11% of Plan Review and
Permit Inspection Fee
City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
Est. City
Staff Labor
Hrs
FullyBurdened
Hourly
Est. Cost
of Service Proposed Fee
Proposed
Cost
Recovery Notes
1 Permit Processing Fee 0.50 x $154 = $77 $77 100%
2 General Plan Maintenance Fee (percent of permit fee) 26% 5% 20% [a] 3 Technology Fee / Records Retention Fee (percent of permit fee) 9% 5% 56% 4 Strong Motion Instrumentation (SMI) Fee Calculation
a) Residential $0.50 or valuation
x .00013
b) Commercial $0.50 or valuation
x .00028
5 Building Standards (SB 1473) Fee Calculation (Valuation) a) $1 - $25,000 $1
b) $25,001 - $50,000 $2
c) $50,001 - $75,000 $3
d) $75,001 - $100,000 $4
e) Each Add'l $25,000 or fraction thereof Add $1
6 Temporary Certificate of Occupancy 1.50 x $154 = $231 $231 100% Copies, Re-Print, Change Of Contractor
7 Printing Scanned / Archived Drawings 0.07 x $154 = $10 $10 100% 8 Job Card / Permit Re-Print 0.25 x $154 = $38 $38 100% Violation Fees
9 Work Done Without Permits 2x Permit Fee
Other Fees
10 Partial Inspection / Extra Inspection Fee (per inspection) 0.50 x $154 = $77 $77 100% 11 Re-inspection Fee (3rd Time or More) (each) 0.50 x $154 = $77 $77 100% [b] 12 Missed inspection Fee 0.50 x $154 = $77 $77 100%
13 Fees for Services Not Listed in this Fee Schedule (per 1/2 hour) 0.50 x $154 = $77 $77 100% [a] Fee only applies to permits for new construction and additions, including signs and swimming pools. [b] Reinspection fee applies after second re-inspection.

City of Grover Beach
User and Regulatory Fee Study
Building Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
Est. City Staff
Labor Hrs
FullyBurdened
Hourly
Est. Cost
of Service Proposed Fee
Proposed
Cost
Recovery Notes
1 Public Works Building Plan Review
a) No Public Works Permit Issued 0.50 x $163 $82 $82 100% b) Minor Projects (1-4 lots or units) 2.00 x $163 $326 $326 100% c) Major Projects (4 or more lots or units) 3.00 x $163 $489 $489 100% d) Deposit Cases varies x $163 = varies $1,000 Deposit 100% 2 Planning Building Plan Review
a) Alterations 0.25 x $192 $48 $48 100%
b) Additions - Residential 0.75 x $192 $144 $144 100%
c) New Residential Unit / Detached ADU 1.50 x $192 $288 $288 100% i) Each Additional Unit 0.50 x $192 $96 $96 100%
d) Commercial / Industrial varies x $192 = varies $1,000 Deposit 100% 3 Plan Check Fees
a) Alternate Materials and Materials Review (per hour) 1.00 x $192 = $192 $192 100% b) Excess Plan Review Fee (4th and subsequent) (per hour) 1.00 x $192 = $192 $192 100% [a] Includes up to three plan checks. The City will bill hourly for additional plan review required.

CLEARSOURCE REPORT TO THE CITY OF GROVER BEACH 15

APPENDIX B

ILLUSTRATION OF PROPOSED FEE SCHEDULE
City of Grover Beach

Activity Description
City of Grover Beach

City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project Comparison of Fees in Section A of Fee Schedule
1 HVAC - (per unit)
a) Change-Out $92 $158 $66 72%
b) New varies $252 n/a
2 Electric Car Charging $159 $218 $59 37%
3 Graywater System
a) No Plan Check Required $92 $158 $66 72%
b) Plan Check Required $204 $252 $48 24%
4 Insulation/Energy Upgrade $92 $158 $66 72%
5 Residential Solar Photovoltaic System - Solar Permit
a) 15kW or less $204 $252 $48 24%
c) Above 15kW – per kW $15 n/a
6 Commercial Solar Photovoltaic System - Solar Permit
a) 50kW or less $500 deposit $1,000 n/a
b) 50kW – 250kW – Base $500 deposit $1,000 n/a
c) 50kW – 250kW – per kW above 50kW $7 n/a
d) Above 250kW – base $500 deposit $2,400 n/a
e) Above 250kW – per kW $5 n/a
7 Service Panel Upgrade $118 $154 $36 30%
8 Water Heater Change-Out (same location) $90 $131 $41 46% 9 Water Heater Change-Out (new location) $118 $158 $40 34% 10 Line Repair - Sewer / Water / Gas $118 $154 $36 31%
11 Line Repair / Re-pipe varies $192 n/a
Activity Description
Attachment 3
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project 12 Re-Roof
a) Up to 2,000 SF (roof area) $189 $231 $42 22%
b) Each Add'l 1,000 SF or fraction thereof $77 n/a
13 Demolition $157 $154 ($3) -2%
14 Temporary Power Pole $118 $115 ($3) -3%
15 Swimming Pool/Spa
a) Swimming Pool / Spa $942 n/a
b) Detached Spa / Water Feature $327 n/a
c) Gunite Alteration $385 n/a
d) Equipment Change-out Only (e.g., pump) $231 n/a
16 Patio
a) Patio without M,E,P
i) Up to 200 SF varies $289 n/a
ii) Greater than 200 SF varies $375 n/a
b) Patio with M,E,P
i) Up to 200 SF varies $500 n/a
ii) Greater than 200 SF varies $577 n/a
17 Window / Sliding Glass Door (New or Alteration)
a) Up to 5 $337 n/a
b) Each additional $63 n/a
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project 18 Signs
a) Wall Sign $102 $164 $62 61%
b) Wall Sign Illuminated $122 $192 $70 57%
c) Monument Sign varies $250 n/a
d) Monument Sign Illuminated varies $308 n/a
19 Storage Racks
a) Storage Racks - First 100 LF $423 n/a
b) Storage Racks - Each Additional 100 LF $16 n/a
City of Grover Beach

BEFORE AND AFTER ILLUSTRATION - BUILDING FEES
Activity Description Current Fee Proposed Fee Fee Change $ Fee Change % Sample Project Comparison to Previously Issued Sample Permits
1 Bathroom Remodel - Minor $966 $785 ($180) -19% $10,000 Construction Valuation 2 Kitchen and Bathroom Remodel $2,097 $1,948 ($150) -7% $46,000 Construction Valuation 3 New Multi-Family Residential $31,988 $59,244 $27,256 85% $2,190,000 Construction Valuation, 19 Units 4 New Single-Family Residential $7,451 $7,987 $537 7% $332,588 Construction Valuation, 2,000 sq ft SFR with 500 sq ft garage and 200 sq ft patio
4 400 sq ft Residential Alteration $1,825 $3,005 $1,180 65% 5 500 sq ft Residential Addition $2,663 $3,251 $589 22% $74,165 Construction Valuation * Current fees vary based on project valuation.

Agenda Item No. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 28, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: FY 2021-22 Mid-Year Budget Review and General Fund Forecast

RECOMMENDATION
Receive information on the FY 2021-22 Mid-Year Budget Review including the City’s American Rescue Plan Act allocation and the updated General Fund Financial Forecast and provide input and direction to staff.

BACKGROUND
Consistent with the Council’s adopted financial policies, this report provides an update on the City’s current financial condition this fiscal year and financial projections for revenues and expenditures over the next five years. The report begins with the City’s mid-year financial status for the General Fund and two Enterprise Funds (Water and Wastewater) and requested consideration of mid-year budget appropriation changes. This report will also update the Council on the City’s American Rescue Plan Act (ARPA) funding allocation and recommended changes from staff. Following the mid-year information, staff will provide the results of an updated five-year General Fund financial forecast that builds on previous forecasts. As an overall summary, the City continues to be in a favorable position despite economic uncertainty with revenue projections that continue to allow the City to make substantial progress on addressing community needs.

FY 2021-22 Mid-Year Financial Report
The General Fund is the City’s primary fund with taxes and major user fees funding basic public services such as Police, Fire, Public Works, Community Development, Administration, and Parks and Recreation. The Council adopted a FY 2021-22 General Fund budget of $19.18 million and included below is a summary of the projected year-end totals based on mid-year actuals that shows an estimated $590,600 General Fund surplus or $547,200 more than budgeted:

Table 1
GF Summary Budget Projected
Beginning Reserves $ 5,344,745 $ 5,344,745
Revenues/Transfers In 19,228,267 18,998,030
Expenditures/Transfers Out 19,184,872 18,407,428
Annual Surplus 43,395 590,602
Ending Reserves $ 5,388,140 $ 5,935,347
% of Operating Expenditures 36% 39%
FY 2021-22
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 2 February 28, 2022
General Fund Revenues
For FY 2021-22, the City’s top five revenues (sales tax, property tax, cannabis tax, franchise fees, and transient occupancy tax) comprise 86% of total revenue, excluding transfers in and one-time grant funds. Total General Fund revenues are projected to end the fiscal year at approximately $19.0 million compared to $19.2 million budgeted. Projections are determined by various factors that include historical trends, revenue received, anticipated business growth, or consulting with tax revenue experts and could change based on the remainder of the fiscal year.

Due to the diversity of the City’s revenue make-up, the City was not impacted as much as other agencies during the COVID pandemic in FY 2019-20 and FY 2020-21. In FY 2019-20, cannabis tax revenues reported a 25% increase from the prior year and sales tax reported a 16% increase from the prior year, mainly due to the significant increase in cannabis sales activity along with an increase in online shopping. As further explained below, in FY 2021-22 cannabis tax revenues are projected to compare more closely to pre-pandemic levels given a number of factors.

Table 2 below highlights the General Fund revenue for the FY 2021-22 budget compared to projected revenue at year-end. As shown in the table below, total revenues are anticipated to be lower than budget by approximately $230,000 with additional information about these five main revenue sources:

Table 2
Top 5 GF Revenue Budget Projected
Over/
(Under)
% of
Budget

1. Sales Tax $ 5,364,000 $ 5,364,000 $ - 100.0%

2. Property Tax 5,176,000 5,248,000 72,000 101.4%

3. Cannabis Tax 2,448,000 1,800,000 (648,000) 73.5%

4. Franchise Fees 709,000 609,000 (100,000) 85.9%

5. TOT 480,000 800,000 320,000 166.7%
Total Top 5 $ 14,177,000 $ 13,821,000 $ (356,000) 97.5% All Other & Transfers In 5,051,267 5,177,600 126,333 102.5% Total GF Revenues $ 19,228,267 $ 18,998,600 $ (229,667) 98.8% • Sales Tax is estimated to be received as budgeted and is now the City’s largest revenue source. The new 1% sales tax measure (Measure F-20) that passed in November 2020 is projected to bring an additional $2,230,000 in revenue in the current year. The latest sales tax report shows business activity is up in the transportation area by 25% from the same period last year mainly due to an increase in fuel prices and travel. In addition, more people are eating out and sales tax reported by restaurants is up by 6% and food markets are in line with pre-COVID sales with only a 2.5% increase from the same period in the previous year. Sales tax revenue in the cannabis industry is down from the same period in the prior year by approximately 7% which is related to the decrease in cannabis tax revenue highlighted below. • Property Tax is estimated to be on track with budget, showing a small variance of $72,000.

The County of San Luis Obispo has estimated a 4% increase in property tax revenue from the prior year, which falls in line with the City’s budgeted numbers and continues to reflect the strong housing market in the county.

Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 3 February 28, 2022
• Cannabis Tax is estimated to be $648,000 lower than budgeted. This number is based on revenues received through the second quarter ending December 31, 2021, along with expectations for activity in the second half of the fiscal year. There are continued challenges facing the industry including the strength of the illicit market, degree of State taxation and regulations, and competition from businesses in other cities. The City is hopeful that sales will increase over the remainder of the year, but economic reports have shown that the increase in cannabis demand during the initial period of the pandemic has plateaued or decreased recently. However, the fourth retailer business is expected to open in April along with a testing laboratory business which could increase tax revenue this year. • Franchise Fees are projected to be $100,000 lower than budget due to a delay in the operation of the trans-oceanic fiber optic cable given international boundary disputes affecting the cable.

These revenues are now projected to start in FY 2022-23. • Transient Occupancy Tax (TOT) is estimated to be $320,000 higher than budget. The increase is due to revenue from permitted short-term rentals coming in higher than anticipated along with an increase in travel/tourism to the Central Coast over the course of the pandemic. • Other Revenue includes other taxes, utility users’ tax, licenses and permits, service charges and other miscellaneous revenues. The estimated increase of $126,000 in these other revenues is mainly due to a budget adjustment for a grant award and a projected increase in construction permits and plan check fees that were impacted during the pandemic but showing positive increases in activity during FY 2021-22. City services including special events, recreation classes and recreation rentals that had little to no activity during the pandemic are coming in as projected as activity has picked up again to pre-pandemic levels.

General Fund Expenditures
Table 3 below shows that overall General Fund expenditures are projected to end the year under the revised budget by $864,000. The revised budget includes budget adjustments that were previously approved by Council and include an additional appropriation of $15,000 for the Deputy City Manager position and $71,000 for a portable generator connection. The projected budget is based on best estimates using the most current data and historical trends and could change with six months remaining in the fiscal year:

Table 3
GF Expenditures Budget Revised Projected Variance
% of
Budget
Salaries and Benefits $ 8,418,643 $ 8,433,643 $ 8,433,643 $ - 100.00% Supplies and Services 8,258,651 8,330,357 8,330,357 - 100.00% Debt Service 205,828 205,828 205,828 - 100.00%
CIP/Transfers Out 2,301,750 2,301,750 1,437,600 (864,150) 62.46% Total GF Expenditures $ 19,184,872 $ 19,271,578 $ 18,407,428 $ (864,150) 95.95% The $864,150 in Capital Improvement Program (CIP) savings is due to $634,000 in lower costs for several capital projects including South Oak Park Boulevard street repair and Skate Park renovations along with $230,000 in savings for capital projects that will be delayed this year including property acquisition for the Corporation Yard renovation project and installation of new Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 4 February 28, 2022
streetlights given PG&E processing time. Staff will provide further information on the current status of the CIP and proposed upcoming projects at the March 28th Council meeting.

Water Fund
Water Fund revenues in charges for service are down $207,000 from this time last year which staff believes is due to a decrease in water consumption with customers trying to conserve water along with the tiered rate structure where customers are charged more for using higher amounts of water. Since water consumption is down, customers save by having a lower rate when using less water. The Water Fund revenues will be monitored closely over the remainder of this fiscal year to see if that trend continues and identify potential funding impacts. Transfers in of $1.3 million come from the Community Development Block Grant (CDBG) Fund for the 2” and 4” water main project that was funded by the CDBG grant.

Table 4
Water Fund
Revenue
Q2
Actual
Actual
7/1-6/30
Q2
Actual
Budget
7/1-6/30
Use of Money and Property $ - $ 32,759 $ 5,027 $ 35,500 Revenue from Other Agencies 72,410 26,269
Charges for Services 1,717,897 4,311,419 1,511,042 4,162,000 Transfers In 391,878 1,326,304 74,493
Grand Total $ 1,717,897 $ 4,808,466 $2,868,642 $ 4,271,993 FY 2020-21 FY 2021-22
With Water Fund expenditures, supplies and services are 81% expended to date due to the annual payment at the beginning of the fiscal year for liability insurance and the semi-annual payment made to the County in July and December for the Lopez Water Contract for debt service and routine operations and maintenance. Overall, Water Fund expenditures are above budget for the second quarter with 72% expended to date. This is mainly due to the above mentioned in addition to the capital projects that are near completion including the upgrade of 2” and 4” water mains funded by CDBG grant funding. Below in Table 5 is further information on Water Fund expenditures:

Table 5
Expenditures
Q2
Actual
Actual
7/1-6/30
Q2
Actual
Budget
7/1-6/30
Salaries and Benefits $ 352,327 1,024,022$ $ 417,671 $ 799,633 Supplies and Services 1,616,244 2,051,494 1,656,453 2,047,819 Major Capital 312,721 1,212,267 1,297,443
Debt Service 240,548 105,854 242,930 292,780
Transfers Out 388,210 494,000
Grand Total $ 2,209,119 $ 3,882,301 $3,529,321 $ 4,931,675 Water Fund FY 2020-21 FY 2021-22
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 5 February 28, 2022
Wastewater Fund
Wastewater Fund revenues are up 4% from this time last year which is mainly due to the rate increase implemented on July 1, 2021, with the adopted budget for FY 2021-22. The City is on track to meet the budgeted revenue amounts for this year as shown in Table 6 on the next page which compares to actual amounts from last year:

Table 6
In terms of expenditures, Wastewater Fund expenditures are below budget for the second quarter with 26% expended to date. The main reason is due to anticipated capital projects that have not yet started and transfers-out that are reconciled and accounted for annually as a year-end adjustment as shown below in Table 7:

Table 7
Carry-Over of Capital Project Funding and Authorized Appropriations Per Council’s adopted financial policies, any unused appropriations at the end of fiscal year 2020- 21 in active capital improvement projects and multi-year programs are re-appropriated for continued use in fiscal year 2021-22. These carry-overs include $1,148,504 in the Capital Projects Fund, $1,152,947 in the Street Rehabilitation and Repair Fund, $3,511,915 in the Water Fund, and $983,001 in the Wastewater Fund. A detailed listing is included in Attachment 1.

The financial policies also authorize any remaining balance of one-time authorized appropriations to be carried forward with the approval of the City Manager and Administrative Services Director.

Council previously approved FY 2020-21 appropriations for costs that were not expended until FY 2021-22. The list of authorized one-time appropriations that will be carried over to FY 2021- 22 for implementation this fiscal year using General Fund reserves include new street signs ($90,000), tree planting at parks, Oak Park median and West Grand Ave ($19,347), two City pool Wastewater Fund
Revenue
Q2
Actual
Actual
7/1-6/30
Q2
Actual
Budget
7/1-6/30
Use of Money and Property $ - $ 14,975 $ 15,579 $ 16,000 Revenue from Other Agencies 61,859
Charges for Services 336,610 1,272,571 351,522 1,301,400 Transfers In 391,878 85,000
Grand Total $ 336,610 $ 1,741,283 $ 367,101 $ 1,402,400 FY 2020-21 FY 2021-22
Wastewater Fund
Expenditures
Q2
Actual
Actual
7/1-6/30
Q2
Actual
Budget
7/1-6/30
Salaries and Benefits $ 276,346 $ 722,503 $ 349,034 $ 672,253 Supplies and Services 200,603 550,748 209,462 559,538
Major Capital 224 444,416 26,757 776,000
Debt Service 21,808 1,192 21,808 21,828
Transfers Out 209,600 284,000
Grand Total $ 498,981 $ 1,928,459 $ 607,060 $ 2,313,619 FY 2020-21 FY 2021-22
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 6 February 28, 2022
vehicle replacements ($40,000), replacement of 2 storage sheds ($16,688), phone system update ($7,000), building fee study ($9,000) and emergency back-up power ($15,227).

Requested Mid-Year Budget Appropriations and General Fund Impact With the current fiscal year half-way completed, departments have had the opportunity to reevaluate their current operations and identify any unforeseen needs that have become known.

Staff is requesting the Council’s consideration of mid-year budget appropriation changes for the General Fund totaling $144,938 along with appropriations requested for other funds including Water ($104,550), Wastewater ($15,000), COPs ($39,932), and K-14 ($660,500) are shown in the detail in Attachment 2 and in Table 8 below:

Table 8
Department Funding Source
FY 22
Mid-Year
Appropriation
Request Description
Public Works General Fund $ 2,620
City pool vehicles replacement-additional appropriation needed to cover balance
Police General Fund 82,750
Replacement Community Video Cameras and
upgraded software
Police General Fund 34,568
50% Replacement Body Worn Cameras and softwareongoing
Non-Department General Fund 25,000
To cover California Central Coast Cities Self-Insurance Fund negative balance
Total General Fund $ 144,938
Public Works Water Fund $ 91,050
Project 4004 - Increase construction cost for waterline upgrades
Public Works Water Fund 10,000
Project 2284 - S. Oak Park rehab change order for
water service upgrade
Public Works Water Fund 3,500
Additional funding due to annual water permit fee
increase
Total Water Fund $ 104,550
Public works Wastewater Fund $ 15,000
City sewer inspection - Allocation to fund change order contingency account
Police COPs $ 5,365 Over budget for 2 plastic storage sheds Police COPs 34,567
50% Replacement Body Worn Cameras and softwareongoing
Total COPs Fund $ 39,932
Public works Measure K-14 $ 400,000 2295-10 - Additional funding to finish project Public works Measure K-14 40,500 2295-11 - Funding for unexpected change orders Public works Measure K-14 150,000
2295-14 - Move $150,000 from FY 23 approved due to
expedited schedule
Public works Measure K-14 70,000
2295-14 - Additional design costs for Nacimiento area
streets added to scope
Total Measure K-14 Fund $ 660,500
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 7 February 28, 2022
Table 9 below shows the General Fund impact of these recommended mid-year budget appropriations for the current FY 2021-22 along with the related changes in General Fund reserves from the carry-over of authorized appropriations. There is projected to be a net surplus of $445,664 for this fiscal year with ending reserves of $5.5 million or 36% of operating expenditures.

Table 9
American Rescue Plan Act Allocation
On September 13, 2021, Council provided direction on the allocation of one-time American Rescue Plan Act (ARPA) funds in which the City was allocated $3.2 million over a two-year period.

The first disbursement of $1.6 million was received in July 2021 to be spent primarily in FY 2021- 22 and the second disbursement of $1.6 million will be disbursed one year later in FY 2022-23.

As part of the FY 2021-23 budget hearing on June 14, Council provided direction to use ARPA funding for programs and activities in the following general categories:
• Homeless services and facilities
• Nonprofit assistance
• Rental and utility assistance
• Business assistance/economic development
• Unfunded water or sewer projects
The ARPA funding is reflected in the FY 2021-23 budget adopted by Council as non-department funding in both FY 2021-22 and FY 2022-23. Total ARPA funding spent through the second quarter (December 31, 2021) totals $174,510 with $1,435,330 remaining from the first allocation received in July. Table 10 on the next page shows the funding allocation, year to date expenditures, and projected year-end funding along with notes about these expenditures including additional items to implement based on funding within each category as described on the following page. The City is on track at this point for full expenditure of the initial $1.6 million allocation with an additional update on these expenditures provided to the Council as part of the FY 2022-23 budget development process.

GF Summary
FY 2021-22
Projected
Revenues/Transfers In $ 18,998,030
Expenditures/Transfers Out 18,407,428
Annual Surplus $ 590,602
Less: Mid-Year Requests 144,938
Revised Annual Surplus $ 445,664
Beginning Reserves 5,344,745
Less: Carryover Authorized Appropriations 200,637
Less: FY 21 CIP Carryover 69,551
Ending Reserves $ 5,520,221
% of Operating Expenditures 36%
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 8 February 28, 2022
Table 10
• Homeless Services and Facilities. The City has currently expended $75,000 of the proposed $800,000 in this category for FY 2021-22 on homeless encampment cleanups and outreach services to connect unhoused individuals with available services. The remaining funding is planned for additional cleaning and outreach, housing assistance, potential property acquisition for a homeless facility, or other support to the Five Cities Homeless Coalition or City departments to provide shelter, services, or outreach for unhoused individuals. • Nonprofit Assistance and Child Care. The City has committed $100,000 in nonprofit assistance grants for providers who serve residents in Grover Beach. The Council approved a nonprofit grant policy on February 15 and this grant program will begin in March. The City also committed $50,000 to provide assistance for operating school-age childcare programs at the Boys and Girls Club (BGC) and San Luis Obispo YMCA (YMCA). Each organization received an allocation of $25,000 in two installments of $12,500 in FY 2021-22. Staff is also intending to use $50,000 in funding for a childcare grant program for at-home providers and families in need of assistance. These direct grants would be distributed based on need in partnership with the South County Chambers of Commerce which recently coordinated a similar grant program in Pismo Beach.
• Rent & Utility Assistance. The City provides discounts to low-income customers that qualify for the PG&E CAREs program and are enrolled in the City’s utility assistance program. This program has provided a total of $13,026 for thus far in FY 2021-22 and is projected to have lower usage than anticipated.
• Business Assistance. The City has expended $9,819 thus far in this category towards a second iteration of the Buy Local program which began in February. Approximately $50,000 will be spent on this program in partnership with the South County Chambers of Commerce.

Staff also intends to allocate $75,000 for additional business assistance that is proposed to Category Allocated YTD Actual Projected Notes
Homeless Services and Facilities
Temporary or permanent shelter spaces $500,000 $0 $500,000 Funding for potential homeless facility Homeless outreach and services $300,000 $75,000 $300,000 Encampment cleaning and outreach and related services and equipment Subtotal $800,000 $75,000 $800,000
Nonprofit Assistance
Nonprofit assistance grants $100,000 $0 $100,000 Nonprofit grant process to begin in March Child care assistance $50,000 $25,000 $100,000 Child care grants ($50K) along with BGC and YMCA funding subsidies ($50K) Subtotal $150,000 $25,000 $200,000
Rent/Utility Assistance
Low-income utility payment subsidy $50,000 $13,026 $25,000 Lower usage than anticipated Subtotal $50,000 $13,026 $25,000
Business Assistance/Economic Development
Business assistance $200,000 $9,819 $125,000 $50K for Buy Local program and $75K for additional business assistance Chamber Econ Dev contract $100,000 $51,665 $150,000 Additional $30K for cowork space and $20K for Visit Grover Beach marketing Subtotal $300,000 $61,484 $275,000
Water and Sewer Projects
Front Street Lift Station sewer upgrades $100,000 $0 $100,000 Anticipated spending by end of fiscal year Upgrading sewer capacity $200,000 $0 $200,000 Funding for sewer video analysis to determine future needs Subtotal $300,000 $0 $300,000
Totals $1,600,000 $174,510 $1,600,000
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 9 February 28, 2022
be focused on exterior improvements such as façade and signage enhancements along with $30,000 to match a contribution from the County to help fund a cowork space on Front Street to support local businesses in partnership with the South County Chambers of Commerce and the Cal Poly Center for Innovation and Entrepreneurship (CIE). Staff also plans to increase the funding for the Visit Grover Beach program by $20,000 from the current level of $20,000 to expand tourism marketing with this program recently recognized as a finalist for the 2022 Best Overall Destination Brand Poppy Award by Visit California. The remainder of the funding in this category ($100,000) provides funding for the City’s economic development services agreement with the Chamber.
• Water and Sewer Projects. This funding will fund a portion of the Front Street lift station sewer upgrade project ($100,000) and the next phase of the sewer system video evaluation ($200,000) used to determine future sewer infrastructure needs.

General Fund Financial Forecast
Economic Trends
The General Fund financial forecast is intended to be a valuable tool to help the Council and staff make prudent financial decisions and provide information for future budgets to come. Staff annually updates a five-year General Fund financial forecast to evaluate the City’s financial condition and help develop the City’s budget.

According to the UCLA Anderson’s latest forecast in December 2021, the big story was what will happen with the continued spread of COVID-19 particularly with the omicron variant. Cases surged in January 2022 though the surge is waning and California’s indoor mask mandate expired on February 15, 2022, and the County’s local order lifted on February 16, 2022. The December 2021 forecast predicted that the growth in first quarter of 2022 would be slower because of continued effects of the omicron variant. Growth has also been slower due to labor shortages and supply constraints for certain goods. The good news is that there is still plenty of room for the economy to grow with labor supply and supply constraints issues projected to ease up throughout 2022 and corresponding GDP growth back to normal by the end of 2023. Overall, confidence is higher with long-term trends and the economic forecast assumes that successive waves of the pandemic are going to have less and less effect on the economy as time goes on.

The forecast anticipates high but slowing inflation, especially as oil prices come down, which is one of the big drivers of inflation. Inflation hit a 40-year high as it rose to 7.5% in January 2022 as price hikes continue to persist, but the UCLA Anderson’s latest forecast expects inflation will come down to 3.4 % by the end of 2022 and 2.8% by the end of 2023. One factor that is encouraging for inflation is that consumers are delaying purchases of cars and furniture due to low supply and higher prices. This delay in spending will help drive the inflation rate down as the supply constraints are lifted and the higher prices of these goods, due to shortages, come down.

Statewide, tourism is picking up again, but it is mainly domestic tourism where people are taking shorter trips and closer to home versus international tourism. Imports are up but supply issues remain. In the last half of 2021, some of the ports in Southern California were backlogged due to record-breaking imports which made it extremely difficult to move the containers fast enough to the retailers. Industrial space has become a hot sector due to the need for more warehouses to store these goods, which also contributes to the source of demand for construction workers. The surge in imports combined with labor shortages has put a big strain on moving the goods and driving prices up, although the backlog has been shrinking in recent months. The lack of supply Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 10 February 28, 2022
is also driving housing prices to record highs, but new laws are being passed to help with the housing shortage. Statewide, the unemployment rate was 7.7% in December 2021, compared to 9% in December 2020. Economists expect the state’s unemployment rate to be 5.6% in 2022 and

4.4% in 2023.

Lastly, based on the latest sales tax forecast ending September 30, 2021, statewide revenues are up 18% overall compared with the previous year with the Central Coast up 17% overall. Three major industry groups showing a rebound include 1) Autos & Transportation (+16%), where new car prices are up 10% and used car prices are up 26%; 2) Fuel & Service Stations (+54%) where the average price per gallon of gas is $4.75 and more people are on the road going to work, school, shopping and traveling; and 3) Restaurants & Hotels (+48%) where people are eating out more and traveling. The Food & Drug group has flattened (+.8%) and includes cannabis and grocery stores. Cannabis businesses did well during the initial period of the pandemic with robust growth but after years of substantial growth, sales in this sector are starting to plateau. Grocery stores are also seeing flat sales mainly due to people wanting to get out of their houses and eat out more since being restricted to stay at home during the pandemic. Consequently, the projection in the Food and Drug sector is continued modest growth at a rate of 2%.

City’s Five-Year Forecast
Fortunately, the City went through the pandemic with little impact to City finances in large part to the diversified economy in Grover Beach. In the current FY 2021-22, the City is seeing more sluggish activity in the cannabis area although this is being offset by the TOT increases that is showing more activity than projected. The City is also facing additional short-term impacts from the uncertainty of the pandemic, higher than normal fuel costs, low supply, both in labor and goods, which is driving up the inflation rate and creating higher prices. Recent geopolitical and military actions in Europe could further increase prices in the short term. However, the long-term forecast is that these trends will be temporary and the inflation rate will come down by the end of 2022 and normalize by the end of 2023. Table 11 below shows a summary of this updated fiveyear forecast with a more detailed version shown in Attachment 3:

Table 11
Overall, the forecast indicates the General Fund is in a positive position over the five-year period given projected revenue increases described below while acknowledging the degree of forecast uncertainty particularly in the later years of the forecast:
• Sales Tax. Using the estimates provided by the City’s sales tax consultant, this year’s forecast assumes that sales tax revenues will also increase by 4% from the current FY 2021-22. The City saw a significant increase of 15.9% in sales tax in FY 2020-21 due to the strong sales in General Fund
FY 2022-23
REVISED FY 2023-24 FY 2024-25 FY 2025-26 FY 2025-26
Revenues $ 18,924,600 $ 17,805,000 $ 18,390,000 $ 18,980,000 $ 19,577,000 Expenditures 18,831,759 17,280,000 17,672,700 18,005,500 18,541,100 Annual Surplus 92,841 525,000 717,300 974,500 1,035,900 *Beginning Reserves 5,519,700 5,470,541 5,853,541 6,428,841 7,261,341 Less: Wastewater Fund Repay (142,000) (142,000) (142,000) (142,000) (178,000) Ending Reserves $ 5,470,541 $ 5,853,541 $ 6,428,841 $ 7,261,341 $ 8,119,241 Percent of Operating
Expenditures 38% 40% 43% 47% 52%
Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 11 February 28, 2022
the cannabis industry and an increase in online sales, although the decrease in cannabis sales in FY 2021-22 as conveyed previously is projected to have some impact on future sales tax revenues in the forecast. The forecast includes an additional $2.3 million from Measure F20 approved in November 2020. • Property Tax. Using the County’s revenue estimates, this year’s forecast assumes that the City’s property tax revenues will increase by 4% next year from the current fiscal year FY 2021-22 given the continued strong real estate market. Low inventory and steady demand from home buyers have boosted home values across California and in the County as home prices rose sharply in 2021.
• Cannabis Tax. The forecast assumes that the City will receive $1.9 million for FY 2022-23, or a 5% increase over what was estimated for FY 2021-22. For FY 2021-22, cannabis sales have been sluggish when compared to the prior year and are estimated to be almost $650,000 lower than what was budgeted to establish a new baseline revenue amount given the industry challenges conveyed previously. This forecast assumes that sales will stay steady with new businesses coming online and possible cannabis lounges, but the forecast takes a conservative approach of not estimating additional revenues as the City has seen in the last three years. Staff continues to recommend caution with these relatively new general revenues and continues to recommend additional general revenues in general for one-time uses such as capital projects.
• Transient Occupancy Tax (TOT). TOT revenues were the most impacted tax revenue during the pandemic, due to a significant decrease in travel for business or pleasure. However current year projections are estimating that TOT will be around $800,000 or $320,000 over the budgeted $480,000. This is partly due to the rebound from the pandemic but also due to the collection of TOT revenue for permitted short-term rentals (STRs). A portion of the TOT collected from the STRs was the result of a collection attempt made for prior years where some STRs were not paying required revenues in a timely manner. Staff has worked with these individuals to make sure they are staying current. TOT is estimated to be $750,000 for FY 2022-23, or $250,000 than originally budgeted. The forecast does not include TOT for future hotel projects until construction begins.

FISCAL IMPACT
The General Fund appropriations requested for the current FY 2020-21 budget total $144,938 while the Water, Wastewater and COPs and Measure K-14 Fund appropriations requested total $104,550, $15,000, $39,932, and $660,500 respectively. These appropriations will be brought to the Council for approval on March 14 pending Council direction. Total FY 2020-21 carryover of special one-time authorized General Fund appropriations total $200,637 and will come out of General Fund reserves.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive information on the FY 2021-22 Mid-Year Budget Review including the City’s American Rescue Plan Act allocation and the updated General Fund Financial Forecast and provide input and direction to staff; or

2. Provide staff with alternate direction.

Staff Report: FY 2021-22 Mid-Year Budget Review and General Fund Forecast Page 12 February 28, 2022

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Attachments

1. FY 2020-21 CIP Carryover to FY 2021-22

2. Mid-Year Appropriation Requests

3. General Fund Five Year Financial Forecast
City of Grover Beach
FY 2020-21 CIP Budget Carried Forward to FY 2021-22
CAPITAL PROJECTS FUND (11) Expenditure
Revenue/
Transfers
from Other
Funds
1004-16th St Park Rehab $ 286,050 $ 286,050
2283-Local Street Rehabilitation Program 147,071 147,071 2284-Local Street Rehabilitation Program 476,299 476,299 3002-Citi Corp Yard Improvements 75,000 75,000
3003-Citywide Disability Access Improvements 82,533 82,533 3263-Facility Improvements 31,552 31,552
3393-Ramona Square Lot 50,000 50,000
Total Capital Projects Fund $ 1,148,504 $ 1,148,504 See recon below STREET REHABILITATION and REPAIR FUND (20)
2295-10-Street Rehabilitation and Repair $ 785,411
2295-11-Street Rehabilitation and Repair 367,536
Total Street Rehabilitation and Repair Fund $ 1,152,947 WATER FUND (81)
4001 - Regional Groundwater Sustainability Project $ 1,067,361 4004 - Water Main Upgrades 162,951
4265 - Water Delivery Upgrades 74,826
4267-2 - Upgrade of 2" and 4" Water Mains 2,206,777 2,206,777 CDBG Total Water Fund $ 3,511,915 $ 2,206,777
WASTEWATER FUND (80)
5001 - Sewer System Upgrades $ 901,380 $ 511,122 Fund 55 5003 - Front Street Lift Station Upgrades 81,621
Total Wastewater Fund $ 983,001 $ 511,122
Attachment 1
Department Funding Source
FY 22
Mid-Year
Appropriation
Request Description
Public Works General Fund $ 2,620
City pool vehicles replacement-additional appropriation needed to cover balance
Police General Fund 82,750
Replacement Community Video Cameras and upgraded
software
Police General Fund 34,568
50% Replacement Body Worn Cameras and softwareongoing
Non-Department General Fund 25,000
To cover California Central Coast Cities Self-Insurance Fund negative balance
Total General Fund $ 144,938
Public Works Water Fund $ 91,050
Project 4004 - Increase construction cost for waterline upgrades
Public Works Water Fund 10,000
Project 2284 - S. Oak Park rehab change order for water service upgrade
Public Works Water Fund 3,500 Additional funding due to annual water permit fee increase Total Water Fund $ 104,550
Public works Wastewater Fund $ 15,000
City sewer inspection - Allocation to fund change order contingency account
Police COPs $ 5,365 Over budget for 2 plastic storage sheds Police COPs 34,567
50% Replacement Body Worn Cameras and softwareongoing
Total COPs Fund $ 39,932
Public works Measure K-14 $ 400,000 2295-10 - Additional funding to finish project Public works Measure K-14 40,500 2295-11 - Funding for unexpected change orders Public works Measure K-14 150,000
2295-14 - Move $150,000 from FY 23 approved due to
expedited schedule
Public works Measure K-14 70,000
2295-14 - Additional design costs for Nacimiento area
streets added to scope
Total Measure K-14 Fund $ 660,500
Attachment 2
Attachment 3
GENERAL FUND FIVE YEAR FISCAL FORECAST: 2022-2027
2019-20 2020-21
Actual Actual Budget Revised
2022-23
Budget
2022-23
Revised 2023-24 2024-25 2025-26 2026-27

REVENUES
Taxes and Franchise Fees
Property Tax 4,725,500 4,881,500 5,176,000 5,248,000 5,331,000 5,458,000 5,676,000 5,846,000 6,021,000 6,202,000 Sales Tax
General: 1% 1,802,100 2,089,100 2,019,000 2,019,000 2,109,000 2,109,000 2,210,000 2,309,000 2,406,000 2,502,000 Measure X: 1/2% 1,017,800 1,185,100 1,115,000 1,115,000 1,151,000 1,151,000 1,206,000 1,260,000 1,313,000 1,366,000 Measure F-20: 1% 572,800 2,230,000 2,230,000 2,302,000 2,302,000 2,412,000 2,521,000 2,627,000 2,732,000 Franchise Fees 585,000 600,200 609,000 609,000 623,000 623,000 635,000 648,000 661,000 674,000 Fiber Optic Cable (4 @ $100K) 100,000 - 100,000 100,000 102,000 104,000 106,000 108,000 Transient Occupancy Tax 433,500 580,400 480,000 800,000 500,000 750,000 773,000 796,000 820,000 845,000 Utility Users Tax 172,600 184,900 183,000 189,000 186,000 193,000 197,000 201,000 205,000 209,000 Cannabis Tax 1,936,700 2,424,900 2,448,000 1,800,000 2,448,000 1,900,000 1,938,000 1,977,000 2,017,000 2,057,000 Business Tax 165,500 154,600 172,000 172,000 175,000 175,000 179,000 183,000 187,000 191,000 Other Taxes 146,300 189,600 165,000 193,000 168,000 200,000 206,000 212,000 218,000 225,000 Total Taxes and Franchises 10,985,000 12,863,100 14,697,000 14,375,000 15,093,000 14,961,000 15,534,000 16,057,000 16,581,000 17,111,000 From Other Governments 616,800 340,400 2,053,000 2,114,000 1,795,000 1,795,000 31,000 32,000 33,000 34,000 Licenses and Permits 241,000 181,100 175,000 235,000 225,000 240,000 245,000 250,000 258,000 266,000 Service Charges 719,200 624,200 879,000 879,000 937,000 937,000 965,000 994,000 1,024,000 1,055,000 Use of Money and Property 207,800 72,400 216,000 186,000 227,000 186,000 192,000 198,000 204,000 210,000 Other Revenues 57,200 40,800 53,000 53,000 54,000 54,000 64,000 69,000 74,000 79,000 Total Revenues 12,827,000 14,122,000 18,073,000 17,842,000 18,331,000 18,173,000 17,031,000 17,600,000 18,174,000 18,755,000

EXPENDITURES
Operating Programs 12,131,200 13,534,500 16,679,000 16,764,000 15,958,000 16,195,159 14,695,000 15,057,000 15,386,000 15,717,700 Debt Service 155,400 154,600 206,000 206,000 181,000 181,000 99,000 26,000 26,000 26,000 CIP (Tr Out Fund 11 start in FY 21) 54,700 229,000 2,071,000 1,207,000 2,275,000 2,275,000 2,300,000 2,400,000 2,400,000 2,600,000 Total Expenditures 12,341,300 13,918,100 18,956,000 18,177,000 18,414,000 18,651,159 17,094,000 17,483,000 17,812,000 18,343,700

OTHER SOURCES (USES)
Transfers In
Cost Allocation Transfers 470,000 486,000 500,000 500,000 515,000 515,000 530,000 541,000 552,000 563,000 Other Transfers In 101,600 92,000 326,600 326,600 236,600 236,600 244,000 249,000 254,000 259,000 Transfers Out (230,600) (230,600) (180,600) (180,600) (186,000) (189,700) (193,500) (197,400) Long-Term Debt Issued 330,000 330,000 - - - - -
Total Other Sources (Uses) 571,600 578,000 926,000 926,000 571,000 571,000 588,000 600,300 612,500 624,600 Sources Over (Under) Uses 1,057,300 781,900 43,000 591,000 488,000 92,841 525,000 717,300 974,500 1,035,900 Less: Mid-Yr Requests (See Attachment 2) (145,000)
Revised Sources Over Uses 446,000
Reserves, Start of Year * 3,647,500 4,704,800 5,486,700 5,486,700 5,519,700 5,519,700 5,470,541 5,853,541 6,428,841 7,261,341 Wastewater Fund Repayment (142,000) (142,000) (142,000) (142,000) (142,000) (142,000) (142,000) (178,000) (201,000)
(70,000)
Reserves, End of Year 4,704,800 5,486,700 5,387,700 5,519,700 5,865,700 5,470,541 5,853,541 6,428,841 7,261,341 8,119,241 Reserve % Operating Costs 39% 41% 36% 36% 41% 38% 40% 43% 47% 52% Minimum reserve policy is 15% of operating costs, with a goal of 25%. 2021-22 FIVE YEAR-FORECAST
* 2019-20 reserves at start of the year is net of the advance payable to Wastewater Fund of $1,435,700, each year starting with FY 22 reflects deduction for WW fund repayment with end of yr reserves.
excludes ARPA for reserve calculation

Grover Beach City CouncilFebruary 28, 2022

Grover Beach City Council
February 28, 2022