Grover Beach City Council
March 14, 2022

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, MARCH 14, 2022, 6:00 PM
Next Resolution No .22-07
Next Ordinance No. 22-01
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

CALL TO ORDER

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

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.

CEREMONIAL CALENDAR
None

PRESENTATIONS

1. Introduction of New Employees Hired Since March 2020

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 Meetings can be viewed on Channel 20 and are live streamed on the City’s website via www.slospan.org. Members of the public who cannot attend the meeting in person 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. 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.

Amended to correct Item 8 page 2
and Resolution for Item 11
Agenda: Grover Beach City Council Meeting Page 2
Monday, March 14, 2022
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.

2. Minutes of the City Council Meeting on Monday, February 28, 2022. (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

3. Introduction and First Reading of an Ordinance to Add a New Chapter 3.2 to Article II (Administration) of the Grover Beach Municipal Code to Define Boundaries for District-Based Elections – Deputy City Manager Eriksson (Recommended Action: 1. Conduct the first reading, by title only, and introduce the Ordinance to Add Chapter 3.2 to Article II (Administration) of the Grover Beach Municipal Code to define boundaries for District-Based City Council Elections; and 2. Schedule a hearing for March 28, 2022 to provide a second reading and adopt the Ordinance.)

ROLL CALL VOTE

4. Authorization for the Police Department to Purchase Axon Body Worn Cameras and Software – Police Chief Peters
(Recommended Action: Adopt the Resolution authorizing the Chief of Police to enter into a five-year contract to purchase new Axon Body Worn Cameras and Software for the Police Department to replace existing cameras.)

ROLL CALL VOTE

5. Acquisition of Replacement Mobile Command Vehicle for the Police Department – Police Chief Peters
(Recommended Action: Adopt the Resolution authorizing the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of a new Mobile Command Vehicle for the Police Department.)

ROLL CALL VOTE

6. FY 2021-22 Mid-Year Budget Appropriation Requests – Administrative Services Director Purcell
(Recommended Action: Approve FY 2021-22 Mid-Year Budget Appropriation Requests.)

ROLL CALL VOTE

7. 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

8. Updated Council Goals for FY 2022-23 – Deputy City Manager Eriksson (Recommended Action: Approve Updates to Council Goals for FY 2022-23 as directed by the City Council at the March 7, 2022 Council Goals Workshop.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, March 14, 2022

PUBLIC HEARING

9. Urgency Ordinance Adopting a Military Equipment Use Policy in Accordance with Assembly Bill No. 481 – Police Chief Peters
(Recommended Action: Adopt an Urgency Ordinance establishing a Military Equipment Use Policy in accordance with California Assembly Bill No. 481 and in compliance with California Government Code Section 7071.)

ROLL CALL VOTE

REGULAR BUSINESS

10. North Oak Park Boulevard Improvements Review and West Grand Avenue Parkways – Public Works Director/City Engineer Ray, Police Chief Peters, and CIP Manager Wiggin
(Recommended Action: Receive an update on recent traffic safety improvements on North Oak Park Boulevard near the intersection with West Grand Avenue and provide direction on the continued implementation of these and other traffic safety improvements near the intersection including parkways on West Grande Avenue.)

11. Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use and Approval of an Assignment of Purchase Agreement, Escrow Documents, Purchase Contract, Agency Use Plan, Resolution Adopting the Plan, and a Categorical Exemption under CEQA Guidelines, Section 15303 – City Manager Bronson, City Attorney Hale and Community Development Director Buckingham (Recommended Action: Approve acquisition of property at 955 South 4th Street (APN No. 060-542-014), including approval of an assignment of purchase agreement, escrow documents, purchase contract, agency use plan, resolution adopting the plan, and approval of a Categorical Exemption under California Environmental Quality Act (CEQA) Section 15303 for $425,000 in the City’s allocation of American Rescue Plan Act funding with the intent to enter into a long-term ground lease with the 5Cities Homeless Coalition to develop and operate a homeless housing facility use and authorize the City Manager to execute the acquisition.)

ROLL CALL VOTE

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) Agenda: Grover Beach City Council Meeting Page 4
Monday, March 14, 2022
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.

CITY MANAGER’S REPORTS AND COMMENTS
CITY ATTORNEY’S REPORTS AND COMMENTS

CLOSED SESSION
None

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.

U2.1(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.

U2.1(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 AAddressing 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 AAddressing 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
Introduction of New Employees Hired Since March
2020
(CC Mtg 3/14/2022)
No Documentation for this Agenda Item –
Introduction of New Employees Hired
Since March 2020
,MINUTES

CITY COUNCIL MEETING
MONDAY, FEBRUARY 28, 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 Monday, February 28, at 6:00 p.m., with all Council Members teleconferencing.

MOMENT OF SILENCE
FLAG SALUTE The flag salute was led by Community Development Director Bruce Buckingham.

ROLL CALL
City Council: Council Members Anna Miller, Robert Robert, Daniel Rushing, Mayor Pro Tem Karen Bright and Mayor Jeff Lee were present via video conference.

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/Engineer Greg Ray, Administrative Services Director Deanne Purcell, Parks & Recreation Program Kathy Petker, Senior Planner Rafael Castillo, Associate Planner Janet Reese and Deputy City Clerk Nicole Retana were also present.

CLOSED SESSION ANNOUNCEMENTS
On Tuesday, February 15, 2022, 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.

City Attorney Hale announced that there no reportable actions taken during Closed Session.

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

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. • Katherine Riser
Agenda Item No. 2
Minutes: City Council Meeting Page 2
Monday, February 28, 2022
With no further comments Mayor Lee closed public comment.

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 on one 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, 3, and 4 as recommended. The motion carried on the following roll call vote:

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

1. Treasurer’s Report for the Period January 1, through January 31, 2022.

Action: Approved the Treasurer’s Report as submitted.

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.

Action: Approved the Treasurer’s Report as submitted.

3. Minutes of the City Council Meeting on Tuesday, February 15, 2022.

Action: Approved minutes as submitted.

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

PUBLIC HEARINGS

5. Fourth Public Hearing on the Creation of a District-Based City Council Election System and Selection of a Final District Map
Mayor Lee read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.

Deputy City Manager Eriksson and Dr. Daniel Phillips, Consultant with NDC presented a presentation via PowerPoint and reviewed the final four maps.

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

Minutes: City Council Meeting Page 3
Monday, February 28, 2022
Action: It was motioned by Council Member Miller seconded by Council Member Robert to conduct a public hearing to consider focus draft maps selected by the Council at the January 24, 2022, public hearing and the selection of Map 901 as the final district map.

The motion carried on the following roll call vote:

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

6. Master Fee Schedule Amendment to Update Building Permit Fees Mayor Lee read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.

Community Development Director Buckingham discussed the background of City Building fees and introduced Terry Madsen and David Schroeder Consultants with Clear Source who presented a staff report via 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 Council Member Rushing to adopt Resolution No. 22-06 amending the City’s Master Fee Schedule for Building Related Services. The motion carried on the following roll call vote:

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

Resolution No. 21-06: A Resolution of the City Council of the City of Grover Beach, California, Amending the City’s Master Fee Schedule for Building Related Services.

REGULAR BUSINESS

7. FY 2021-22 Year Budget Review and General Fund Forecast Mayor Lee read the title to the foregoing item and deferred to staff for a report.

Administrative Services Director Purcell presented a staff report via PowerPoint Presentation with updated information on the Mid-year Budget review.

Mayor Lee invited public comment on this matter. No public comments were received at this time and the Mayor closed the Public Hearing.

Minutes: City Council Meeting Page 4
Monday, February 28, 2022
Action: It was motioned by Mayor Pro Tem Bright seconded by Council Member Rushing to receive and approve the information of the FY 2021-22 Mid-Year Budget Review including the City’s American Rescue Plan Act (ARPA) and the updated General Fund Forecast Allocations.

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – 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 was on the line for public comment.

COUNCIL COMMITTEE REPORTS
Mayor Pro Tem reported on the Air Pollution Control District (APCD) meeting and the SLO Council of Governments/SLO Regional Transit Authority (SLOCOG/SLORTA) meeting.

Council Member Miller discussed the REACH SLO Advisory Commission meeting.

Council Member Robert discussed the Integrated Waste Management Authority (IWMA) meeting.

Council Member Rushing reported on the South County Chambers of Commerce meeting.

Mayor Lee discussed the Five Cities Fire Joint Powers Authority meeting and the South SLO County Sanitation District (SSLOCSD).

LEAGUE OF CALIFORNIA CITES – POLICY COMMITTEE REPORTS AND OTHER LEAGUE

MATTERS
None.

COUNCIL COMMUNICATIONS
Mayor Pro Tem Bright stated that Clean Up Week is scheduled for March 14 – 18, 2022.

Council Member Miller shared that there is a County Vaccine Clinic on March 2, 2022 from 3:00 pm – 7:00 pm at Grover Beach Elementary School.

Council Member Rushing thanked the people of Grover Beach for conserving water.

Council Member Robert thanked the Community and the Exploration Discovery Center for all they do.

Mayor Lee reported that it is Read Across America week and on March 2, 2022, he will be reading to some classes at Grover Heights Elementary School. Five Cities Homeless Coalition Golf Tournament on April 2, at Pismo Golf Course. Also, discussed the comments received regarding the Ramona Park clean up.

Minutes: City Council Meeting Page 5
Monday, February 28, 2022

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson added to comments from Mayor Lee regarding Homelessness and discussed the City’s cleanup of Ramona Park. He stated that next Monday, March 7, 2022, at 6:00 pm with be the Council Goals Workshop held at Ramona Center, the first in person meeting.

And on March 14th there on out the City Council will be in person in our Council Chambers. He mentioned two new businesses that opened in Grover Beach, Empower Yoga Studio and Community Boutique and Cox’s Analytics. And lastly, thanked Council and City Staff for their diligence on the items on tonight’s agenda.

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 8:37 p.m., the Council met in Closed Session regarding the following items:

A. CONFERENCE WITH REAL PROPERTY NEGOTIATIORS
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: Instructions to Negotiators will concern both price and terms of payment.

Closed Session Announcements: At 8:55 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.

Minutes: City Council Meeting Page 6
Monday, February 28, 2022

ADJOURNMENT
There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 8:56 p.m.
_____________________________

JEFF LEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 3

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Introduction and First Reading of an Ordinance to Add a New Chapter

3.2 to Article II (Administration) of the Grover Beach Municipal Code to Define Boundaries for District-Based Elections

RECOMMENDATION
1) Conduct the first reading, by title only, and introduce the Ordinance to add Chapter 3.2 to Article II (Administration) of the Grover Beach Municipal Code to define boundaries for district-based City Council elections; and
2) Schedule a hearing for March 28, 2022 to provide a second reading and adopt the Ordinance.

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 four 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 then worked with demographic consultant National Demographics Corporation (NDC) to create four draft maps for the Council’s consideration with district boundaries defined by Census blocks 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.

On January 24, 2022, the 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 deliberation, the Council selected four focus maps to bring forward to the fourth and final public hearing on February 28, 2022. At that hearing, the Council unanimously voted to select a final map (Plan 901, shown in Attachment 2).

The attached Ordinance (shown as Attachment 3) will codify the district boundaries depicted in the approved final map to be used in future district-based City Council elections. The Ordinance also defines the rotation of district elections. A public hearing will be held on March 28, 2022 for a second reading and adoption of the Ordinance.

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

Staff Report: Introduction and First Reading of District-Based Elections Ordinance Page 2 March 14, 2022

ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct the first reading, by title only, and introduce the Ordinance to add Chapter 3.2 to Article II – Administration of the Grover Beach Municipal Code to define boundaries for district-based City Council elections and schedule a hearing for March 28, 2022 to provide a second reading and adopt the Ordinance; or
2) Provide alterative direction to staff.

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

Attachments

1. Resolution No. 19-37

2. Final Map 901

3. Ordinance No. 22-__
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)
ORDINANCE NO. 22-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA ADDING A NEW CHAPTER 3.2 (DISTRICTBASED ELECTIONS) OF ARTICLE II (ADMINISTRATION) WHEREAS, members of City Council of the City of Grover Beach (“City”) are currently elected in “at-large” 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 was 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
Attachment 3
Ordinance No. 22-__ Page 2
WHEREAS, the City Council has concluded that the public interest would be best served by transitioning to a district-based election system for City Council members due to the inherent uncertainties and costs associated with defending the City's at-large election system again a CVRA lawsuit; and
WHEREAS, the City conducted four public hearings and engaged in extensive public outreach to consider city districts and proposed district maps, as required by California Elections Code Section 10010; and
WHEREAS, the City Council voted unanimously in favor of adopting the selected district Plan 901, attached hereto;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Grover Beach as follows:

PART 1: The above recitals and findings are true and correct and incorporated herein by this reference.

PART 2: CEQA. The City Council finds that the proposed amendments to the Grover Beach Municipal Code are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

PART 3: A New Chapter 3.2, (District-Based Elections), of Article II, (Administration), is hereby added to the Grover Beach Municipal Code as follows:

CHAPTER 3.2 –DISTRICT-BASED ELECTIONS
Section 2360. By-district electoral system for four Councilmembers. (A) Pursuant to California Government Code Sections 34886 and 34871(c), Councilmembers shall be elected by-districts in four (4) single-member districts. (B) Except as provided in subdivision (c) hereof, the Councilmember elected to represent a district must live in that district and be a registered voter in that district, and any candidate for City Council must live in, and be a registered voter in, the district in which he or she seeks election at the time nomination papers are issued, pursuant to California Government Code Section 34882 and Elections Code Section 10227. (C) A Councilmember in office at the time this Article takes effect shall continue in office until the expiration of the full term to which he or she was elected or appointed and until his or her successor is qualified. If vacancies in Councilmember offices elected at-large occur before expiration of the full term thereof, such vacancies may be filled according to law from the District for which the vacancy occurs.

Ordinance No. 22-__ Page 3
(D) Upon expiration of the full term of each Councilmember elected at-large, that Councilmember’s successor shall be elected on a by-district basis in the districts established in Section 2362. A vacancy in a Councilmember office elected by-district shall be filled according to law by a person qualified to hold the office, who lives in the district.

Section 2361 Establishment of Boundaries. This City of Grover Beach is divided into four City Council districts, the boundaries of which are designated, numbered and described as set forth in Section 2362.

Section 2362. Districts.
(A) Elections shall take place, and Councilmembers shall be elected, “by-districts” as that term is defined in California Government Code Section 34871, meaning one member of the City Council shall be elected from each district, by the voters of that district alone.
(B) The districts are as follows:

First City Council district. City Council District One shall be all that territory in the city comprised of the following U.S. Census blocks:
060790121024011
060790121024019
060790121024008
060790121024002
060790121024015
060790121021035
060790121022047
060790121024016
060790121024001
060790121022048
060790121024021
060790121024018
060790121024017
060790121024000
060790121022049
060790121021034
060790121022046
060790121021033
060790121022035
060790121022045
060790121022036
060790121021030
060790121021029
060790121022026
060790121022027
060790121022025
060790121022024
060790121022044
060790121022037
060790121022028
060790121022023
060790121021023
060790121021027
060790121021024
060790121021026
060790121021025
060790121022019
060790121022007
060790121022011
060790121021000
060790121022010
060790121022018
060790121022012
060790121022006
060790121022009
060790121022008
060790121022021
060790121022013
060790121022017
060790121022005
060790121022016
060790121022033
060790121022004
060790121022003
060790121022034
060790121022014
060790121022001
060790121022015
060790121022002
060790121022000
060790121022066
060790121022067
060790121021003
060790121021007
060790121021006
060790121021001
060790121021022
060790122012000
060790122012003
Ordinance No. 22-__ Page 4
060790121021015
060790121021014
060790121021010
060790122012001
060790121021002
060790121024003
060790121021017
060790121021013
060790121021009
060790121021005
060790121021008
060790121021004
060790121021019
060790121021018
060790121021032
060790121021020
060790121021021
060790121021031
060790121021028
060790121024004
060790121024013
060790121024012
060790121024010
060790121024024
060790121024023
060790121024027
060790121024026
060790121024025
060790121024022
060790121024006
060790121024020
Second City Council district. City Council District 2 shall be all that territory in the city comprised of the following U.S. Census blocks:
060790121022050
060790121022051
060790121022057
060790121022056
060790121022055
060790121022054
060790121022038
060790121022052
060790121022039
060790121022029
060790121022022
060790121022030
060790121022020
060790121022053
060790121022040
060790121022041
060790121022031
060790121022032
060790121022042
060790121022043
060790120021002
060790120021003
060790120021005
060790120021001
060790120021000
060790120021007
060790120022012
060790120022019
060790120022013
060790120022018
060790120022017
060790120022014
060790120022011
060790120022004
060790120022003
060790120022010
060790120022009
060790120022005
060790120022002
060790120022006
060790120022001
060790120022016
060790120022015
060790120021019
060790120021018
060790120021015
060790120021016
060790120022008
060790120022007
060790120022000
060790120021012
060790120021011
060790120021004
060790120021017
060790120021014
060790120021021
060790120021013
060790120021010
060790120021006
060790120021009
060790120021020
060790120021008
060790120022020
Third City Council district. City Council District 3 shall be all that territory in the city comprised of the following U.S. Census blocks:
060790121023003
060790121022060
060790121022059
060790121023002
060790121022061
060790121022058
060790121023001
060790121022062
060790121023000
060790121022065
060790121022063
060790121022064
Ordinance No. 22-__ Page 5
060790120023006
060790120023010
060790120023011
060790120023004
060790120023005
060790120023012
060790120023014
060790120023013
060790120023003
060790120023002
060790120023027
060790120023022
060790120023023
060790120023001
060790120023000
060790121023020
060790121023019
060790121023012
060790121023011
060790121023004
060790121023026
060790121023021
060790121023027
060790121023025
060790121023022
060790121023024
060790121023023
060790121023018
060790121023013
060790121023017
060790121023014
060790121023010
060790121023005
060790121023009
060790121023016
060790121023015
060790121023006
060790121023008
060790121023007
060790120023034
060790120023018
060790120023025
060790120023024
060790120023026
060790120023017
060790120023020
060790120023028
060790120023016
060790120023021
060790120023015
060790120023019
060790120023008
060790120023009
060790120023007
Fourth City Council district. City Council District Four shall be all that territory in the city comprised of the following U.S. Census blocks:
060790121023029
060790120011021
060790120011016
060790120011026
060790120011015
060790120011001
060790120011000
060790120023035
060790120023036
060790121024009
060790121024014
060790121024007
060790121024005
060790121024028
060790121024029
060790121023028
060790120011046
060790120011045
060790120011039
060790120011038
060790120011037
060790120011047
060790120011048
060790120011040
060790120011029
060790120011041
060790120011042
060790120011025
060790120011043
060790120011044
060790120011035
060790120011032
060790120011033
060790120011034
060790120011036
060790120011019
060790120011020
060790120011009
060790120011008
060790120011007
060790120011018
060790120011031
060790120011017
060790120011024
060790120011010
060790120011006
060790120011011
060790120011012
060790120011005
060790120011004
060790120023033
060790120023032
060790120023031
060790120023030
060790120011030
060790120011028
060790120011027
060790120011023
060790120011013
060790120011003
060790120011022
060790120011014
060790120011002
060790120023029
(C) The districts specified in subdivision (B) shall continue in effect until they are amended or repealed in accordance with law.

Section 2363. Election schedule.
(A) Councilmembers from Districts One and Two shall be elected beginning at the General Municipal Election in November 2022, and every four years thereafter. (B) Councilmembers from Districts Three and Four shall be elected beginning at the General Municipal Election in November 2024, and every four years thereafter.

Section 2364. At-large Mayor. Consistent with Government Code Section 34900, the Mayor shall be elected at-large by the entire City for a term of two years. The Mayor shall be entitled to serve only two consecutive terms. The Mayor may run again for any future term for Mayor commencing no later than 24 months after the last of two consecutive terms.

PART 4: A map showing the districts described in this Ordinance, Final Plan 901, is attached hereto as Attachment 1 and incorporated by this reference. To the extent there is a conflict between the descriptions contained in the Ordinance codified in this Chapter and the map incorporated herein, the census block descriptions shall prevail. If necessary to facilitate the implementation of this Ordinance, the City Manager or his or her designee is authorized to make technical adjustments to the district boundaries that do not substantively affect the populations in the districts or the eligibility of candidates.

The City Manager shall consult with the City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts.

PART 5: Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this chapter, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the determination of any court of competent jurisdiction, such determination shall not affect the validity of the remaining portions of this chapter or its application to other persons. The City Council hereby declares that it would have adopted this chapter and each section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

PART 6: Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty first day after its final passage. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.

Ordinance No. 22-__ Page 7
INTRODUCED at a regular meeting of the City Council held March 14, 2022 and PASSED, APPROVED, and ADOPTED by the City Council on __________, on the following roll call vote, to wit:

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
APPROVED:
__________________________

JEFF LEE, MAYOR
ATTEST:
____________________________________

WENDI SIMS, CITY CLERK
APPROVED AS TO FORM:
_____________________________________
DAVID P. HALE, CITY ATTORNEY
**DRAFT**
Agenda Item No. 4

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: John Peters, Chief of Police
Jim Munro, Commander
SUBJECT: Authorization for the Police Department to Purchase Axon Body Worn Cameras and Software

RECOMMENDATION
Adopt the Resolution authorizing the Chief of Police to enter into a five-year contract to purchase Axon Body Worn Cameras and Software for the Police Department to replace existing cameras.

BACKGROUND
Since 2011, the Police Department has been a proponent and early adopter of body worn camera (BWC) technology. BWC video has become essential to the successful prosecution of criminal cases, auditing police officer performance, protecting the City from civil liability and helping build trust with our community. All sworn officers and the department’s civilian community service technician are assigned BWCs for use in the field. However, the existing BWCs are frequently failing given the age of this equipment and the replacement inventory for the same technology is low. In addition, the current cameras do not offer some of the basic functions that new BWC technology allows.

In addition, the current software used to support the storage and management of the City’s BWC video is also deficient in several areas. With new State legislative requirements regarding public video release, redaction capability technology is necessary which our current software does not support. The software is difficult to search and locate video evidence and lacks basic features of a modern digital evidence management system.

Through research of multiple BWC vendors and recommendations, staff has identified Axon Enterprises, Inc. as the City’s preferred vendor. Axon is the largest and most advanced BWC provider in the nation and is used by thousands of law enforcement agencies around the world.

The Axon suite of products will allow Police Department staff to work more efficiently. As an example, video evidence will be “auto-tagged” with a case number and synced with the computer aided dispatch system saving staff valuable time. Once the camera is docked at the end of the shift, the video evidence will automatically upload into the secure system, unlike the current manual process which keeps officers in the station for long periods of time. Staff looked into other vendors but they could not provide the software that will store all videos, allow for redaction capabilities, and provide sufficient digital evidence storage and management.

Staff Report: Purchase of Replacement Body Worn Cameras Page 2 March 14, 2022
In addition to the essential features listed above, several important timesaving and officer safety features are also included with this package:
• Axon Citizen: allows community members to submit digital evidence via a secure link • Signal Sidearm: allows for auto-activation of the BWC when a firearm is unholstered • Axon Performance: allows supervisors to randomly view video and audit officer video • Respond Plus: allows video live streaming and GPS from the officer’s BWC • Unlimited Data Storage

FISCAL IMPACT
The initially proposed annual cost of this purchase was $69,135 which was included in the list of mid-year budget appropriations that the Council concurred with on February 28, 2022. Staff was subsequently able to negotiate a lower annual cost for the project of $60,761. The Axon contract is a five-year contract (Attachment 1, Exhibit A) to provide hardware and software to the Police Department. The fiscal impact for FY 2021-22 will be $30,381 from General Fund and $30,380 from the Supplemental Law Enforcement Services Fund (COPS Grant). The remaining years of the contract will be included into the operating budget for the Police Department with this cost share between the General Fund and the COPS Grant Fund.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the Resolution authorizing the Chief of Police to enter into a contract to purchase Axon Body Worn Cameras and software for the Police Department.

2. Do not adopt the Resolution.

3. Provide Staff with further direction.

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

Attachments

1. ResolutionNo. 22-XX
Attachment 1
RESOLUTION NO. 22-

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

CALIFORNIA AUTHORIZING THE CHIEF OF POLICE TO ENTER A FIVE-YEAR

CONTRACT TO PURCHASE AXON BODY WORN CAMERAS AND

SOFTWARE
WHEREAS, the Grover Beach Police Department has been a proponent and early adopter of modern technology that enhances efficiency and public safety; and WHEREAS, the Grover Beach Police Department was the first Law Enforcement agency in San Luis Obispo Country for fully implement Body Worn Cameras (BWCs) for all officers in 2011; and
WHEREAS, the current Police Department BWCs have exceeded their lifespan, are frequently failing, lack modern technological advances readily available in other BWCs and the inventory is low; and
WHEREAS, an upgrade to the current Police Department BWCs and software is required in order to be in compliance with recent California legislation regarding the release of police videos; and
WHEREAS, the Chief of Police for the City of Grover Beach is authorized to execute on behalf of the City of Grover Beach the attached contract, (Exhibit A).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby authorize the Chief of Police to execute the contract with Axon Enterprise, Inc. for new BWCs and software to be used by the Police Department.

On motion by ________, seconded by _________, and on the following roll call vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 14th day of March, 2022. ___________________________________

JEFF LEE, MAYOR
ATTEST:
______________________________

WENDI SIMS, CITY CLERK
** D R A F T **
1 Q-367997-44615.622MA
Q-367997-44615.622MA
Issued: 02/23/2022
Quote Expiration: 03/31/2022
EST Contract Start Date: 04/15/2022
Account Number: 228826
Payment Terms: N30
Delivery Method: Fedex - Ground

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
Business;Delivery;Invoice-711
Rockaway Ave
Grover Beach Police Dept. - CA Matt Appelbaum Jim Munro 711 Rockaway Ave 711 Rockaway Ave Phone: Phone: (805) 473-4511 Grover Beach, CA 93433-2007 Grover Beach, CA 93433-2007 Email: [email protected] Email: [email protected] USA USA Fax: Fax:

Email:

Program Length 60 Months Bundle Savings $41,021.19
TOTAL COST $303,805.61 Additional Savings $939.00
ESTIMATED TOTAL W/ TAX $314,373.29 TOTAL SAVINGS $41,960.19

PAYMENT PLAN

PLAN NAME INVOICE DATE AMOUNT DUE
Year 1 Mar, 2022 $60,761.12
Year 2 Mar, 2023 $60,761.12
Year 3 Mar, 2024 $60,761.12
Year 4 Mar, 2025 $60,761.12
Year 5 Mar, 2026 $60,761.12
Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
Exhibit A
2 Q-367997-44615.622MA
Quote Details
Bundle Summary
Item Description QTY
BWCUwTAP BWC Unlimited with TAP 30
AB3C AB3 Camera Bundle 30
AB3MBD AB3 Multi Bay Dock Bundle 4
DynamicBundle Dynamic Bundle 1
DynamicBundle Dynamic Bundle 1
DynamicBundle Dynamic Bundle 1
Bundle: BWC Unlimited with TAP Quantity: 30 Start: 4/15/2022 End: 4/14/2027 Total: 160200.01 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) E.com License 73746 PROFESSIONAL EVIDENCE.COM LICENSE 30 $39.00 20.39% $0.00 $31.05 $55,888.94 Warranty 80465 EXT WARRANTY, MULTI-BAY DOCK (TAP) 4 $21.00 20.39% $351.10 $16.72 $4,012.54 Camera Warranty 80464 EXT WARRANTY, CAMERA (TAP) 30 $11.67 20.39% $1,463.3 3 $9.29 $16,723.69
Multi-bay Dock Refresh
1 73689 MULTI-BAY BWC DOCK 1ST REFRESH 4 $1,610.00 20.39% $448.63 $1,281.78 $5,127.13 Camera Refresh 1 with
Spares 73309 AXON CAMERA REFRESH ONE 31 $755.00 20.39% $1,630.4 4 $601.08 $18,633.63
Device Storage 73686 EVIDENCE.COM UNLIMITED AXON DEVICE STORAGE 30 $24.00 20.39% $0.00 $19.11 $34,393.20
Camera Refresh 2 with
Spares 73310 AXON CAMERA REFRESH TWO 31 $790.00 20.39% $1,706.0 3 $628.95 $19,497.44
Multi-bay Dock Refresh
2 73688 MULTI-BAY BWC DOCK 2ND REFRESH 4 $1,685.00 20.39% $469.52 $1,341.49 $5,365.98 Spare Camera Warranty 80464 EXT WARRANTY, CAMERA (TAP) 1 $11.67 20.39% $48.78 $9.29 $557.46 Bundle: AB3 Camera Bundle Quantity: 30 Start: 4/15/2022 End: 4/14/2027 Total: 20970 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) Camera 73202 AXON BODY 3 - NA10 - US - BLK -
RAPIDLOCK 30 $699.00 0.00% $1,834.8
7 $699.00 $20,970.00
3 Q-367997-44615.622MA
Spare Camera 73202 AXON BODY 3 - NA10 - US - BLK -
RAPIDLOCK 1 $0.00 0.00% $0.00 $0.00 $0.00
Camera Mount 74020 MAGNET MOUNT, FLEXIBLE, AXON
RAPIDLOCK 33 $0.00 0.00% $0.00 $0.00 $0.00
USB 11534 USB-C to USB-A CABLE FOR AB3 OR FLEX 2 33 $0.00 0.00% $0.00 $0.00 $0.00 Bundle: AB3 Multi Bay Dock Bundle Quantity: 4 Start: 4/15/2022 End: 4/14/2027 Total: 6155.6 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) Dock 74210 AXON BODY 3 - 8 BAY DOCK 4 $1,495.00 0.00% $523.25 $1,495.00 $5,980.00 Power Cord 71019 NORTH AMER POWER CORD FOR AB3 8-
BAY, AB2 1-BAY / 6-BAY DOCK 4 $0.00 0.00% $0.00 $0.00 $0.00 Wall Mount 70033 WALL MOUNT BRACKET, ASSY,
EVIDENCE.COM DOCK 4 $43.90 0.00% $15.36 $43.90 $175.60
Bundle: Dynamic Bundle Quantity: 1 Start: 4/15/2022 End: 4/14/2027 Total: 106200 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) Other 73682 AUTO TAGGING LICENSE 30 $9.00 0.00% $0.00 $9.00 $16,200.00 Other 73739 PERFORMANCE LICENSE 30 $9.00 0.00% $0.00 $9.00 $16,200.00 Other 73618 CITIZEN FOR COMMUNITIES USER
LICENSE 30 $9.00 0.00% $0.00 $9.00 $16,200.00
Other 73478 REDACTION ASSISTANT USER LICENSE 30 $9.00 0.00% $0.00 $9.00 $16,200.00 Other 11642 THIRD-PARTY VIDEO SUPPORT LICENSE 30 $9.00 0.00% $1,417.5 0 $9.00 $16,200.00
Other 79999 AUTO TAGGING / PERFORMANCE
IMPLEMENTATION SERVICE 1 $0.00 0.00% $0.00 $0.00 $0.00
Other 80322 LIVE STREAMING ADD-ON ACCESS 30 $9.00 0.00% $0.00 $9.00 $16,200.00 Other 73449 RESPOND DEVICE LICENSE 30 $5.00 0.00% $0.00 $5.00 $9,000.00 Bundle: Dynamic Bundle Quantity: 1 Start: 4/15/2022 End: 4/14/2027 Total: 7530 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) Other 11507 MOLLE MOUNT, SINGLE, AXON RAPIDLOCK 30 $31.30 100.00% $0.00 $0.00 $0.00 Other 71044 BATTERY, SIGNAL SIDEARM, CR2430
SINGLE PACK 60 $1.00 0.00% $5.25 $1.00 $60.00
Other 75015 SIGNAL SIDEARM KIT 30 $249.00 0.00% $653.62 $249.00 $7,470.00 4 Q-367997-44615.622MA
Bundle: Dynamic Bundle Quantity: 1 Start: 4/15/2022 End: 4/14/2027 Total: 2750 USD Category Item Description QTY List Price Discount Tax Net Price Total(USD) Other 85144 AXON STARTER 1 $2,750.00 0.00% $0.00 $2,750.00 $2,750.00

INDIVIDUAL ITEMS
Category Item Description QTY List Price Discount Tax Net Price Total(USD) Total: 0
Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.
5 Q-367997-44615.622MA
Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at www.axon.com/legal/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. 6 Q-367997-44615.622MA
\s1\ \d1\
Signature Date Signed
2/23/2022
Agenda Item No. 5

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: John Peters, Chief of Police
SUBJECT: Acquisition of Replacement Mobile Command Vehicle for the Police Department

RECOMMENDATION
Adopt the Resolution authorizing the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of a new Mobile Command Vehicle for the Police Department.

BACKGROUND
In preparation for the FY 2021-23 budget, staff determined the Mobile Command Vehicle currently in use by the Police Department needs replacement. The current vehicle, a 1994 Chevy Panel Box Truck, was originally obtained by the Police Department in 2012 as a donation from the Ventura Police Department. The Police Department has used this vehicle in responses to critical incidents, planned events, dispatch assistance and SLO County Regional Negotiations Team assistance. The FY 2021-23 budget adopted by the City Council approved funding for this vehicle replacement through a lease agreement that would finance the vehicle over a six-year period for a total cost of $371,147.

Staff has identified Government Capital Corporation (GCC), a municipal leasing corporation, as the financier capable of providing a competitive financing plan for the Mobile Command Vehicle.

The City recently used the financing services from GCC to finance the communications radio equipment upgrade and the replacement of three patrol vehicles in the Police Department fleet.

The financing plan is a municipal lease-purchase agreement that will cost $68,729 annually for six years with the first payment due within the first year of receiving the vehicle. Since the first payment is already budgeted, the City will make the first payment upon receipt of the vehicle in late March 2022. By making the payment sooner, it is anticipated that the city will save about $5,000 in interest over the six-year period.

Staff is recommending the City Council adopt the Resolution authorizing the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of the replacement Mobile Command Vehicle for the Police Department.

FISCAL IMPACT
The cost of this action is included in the City’s FY 2021-22 operating budget.

Staff Report: Police Mobile Command Vehicle Page 2
March 14, 2022

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the Resolution authorizing the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of a replacement Mobile Command Vehicle for the Police Department; or

2. Provide staff with further direction.

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

Attachments

1. Resolution No. 22-XX

2. Government Capital Corporation Finance Agreement
Attachment 1
RESOLUTION NO. 22-XX

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

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE

PURCHASE AGREEMENT WITH GOVERNMENT CAPITAL CORPORATION
WHEREAS, the Police Department’s Mobile Command Vehicle is in need of replacement to meet existing and future needs of the City; and
WHEREAS, the City desires to enter into a Lease-Purchase Agreement by and between the City of Grover Beach and Government Capital Corporation, for the purpose of financing the Mobile Command Vehicle; and
WHEREAS, the City desires to designate this Agreement as a "qualified tax exempt obligation" of the City of Grover Beach for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended; and
WHEREAS, that should the need arise, if applicable, the City of Grover Beach will use loan proceeds for reimbursement of expenditures related to the Property, within the meaning of Treasury Regulation section 1.150-2, as promulgated under Internal Revenue Code of 1986, as amended; and
WHEREAS, the City desires to designate Matthew Bronson, City Manager, as the authorized signer of the Lease Purchase Agreement Number 9871 dated as of March 21, 2022, by and between the City of Grover Beach and Government Capital Corporation as well as any other ancillary exhibit, certificate, or documentation needed for the Agreement.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby authorize the City Manager of the City of Grover Beach to execute the LeasePurchase on behalf of the City.

On motion by ______________, second by ____________, and on the following roll call vote, to wit:

AYES: Council Member –
NOES: Council Member –
ABSENT: Council Member –
ABSTAIN: Council Member –
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 14th day of March, 2022. ** D R A F T **
___________________________________

JEFF LEE, MAYOR
ATTEST:
______________________________

WENDI SIMS, CITY CLERK
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 1

CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
THIS CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No.9871 (hereafter referred to as "Agreement") dated as of March 21, 2022 by and between Government Capital Corporation, a Texas corporation (herein referred to as "Lessor"), and City of Grover Beach, a political subdivision or agency of the State of California (hereinafter referred to as "Lessee").

WITNESSETH: In consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto agree as follows:

1. Term and Payments. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the property described in Exhibit A hereto (hereinafter, with all replacement parts, substitutions, proceeds, increases, additions, accessions, repairs and accessories incorporated therein or affixed thereto, referred to as the "Property") for the amounts to be paid in the sums (the "Lease Payments") and on the dates (the "Lease Payment Dates") set forth in Exhibit B hereto. Except as specifically provided in Section 2 hereof, the obligation of the Lessee to make the Lease Payments called for in Exhibit B hereto shall be absolute and unconditional in all events and shall not be subject to any set-off, defense, counterclaim or recoupment for any reason. The term of the lease hereunder shall commence upon the dated date of the lease and shall continue until the end of the Lessee's current fiscal period and thereafter for such additional fiscal periods as are necessary to complete the anticipated total lease term as set forth in Exhibit B, unless earlier terminated as provided herein.

2. Renewal and Non-Appropriation. Lessee agrees that it will take all necessary steps and make timely requests for the appropriation of funds to make all Lease Payments called for under Exhibit B, and use its best efforts and take all steps to cause such appropriations to be made. In the event that (i) funds for the succeeding fiscal period cannot be obtained, (ii)Lessee has exhausted all legally available means for making payment called for under this Agreement, (iii) Lessee has invoked and diligently pursued all legal procedures by which payment called for under this agreement may be made, (iv) such failure to obtain funds has not resulted from any act or failure to act of Lessee, (v) Lessee has not acquired, and has no intent to acquire during the subsequent fiscal period, items of property having functions similar to those the Property or which provide similar benefits to Lessee, and (vi) no funds have been appropriated for the acquisition of such property, Lessee may terminate this Agreement at the end of any fiscal period during the payment schedule set forth in Exhibit B by giving notice to Lessor or its successors at least sixty (60) days prior to the first day of such fiscal period for which appropriations cannot be made. Such failure to obtain proper appropriation and approval of the full amount of funds necessary to make required payments hereunder during any fiscal period subsequent to the current fiscal period shall terminate all Lessee's right, title and interest in and obligations under this Agreement and to all the Property, effective on the last day of the last fiscal period for which appropriation or approval was properly obtained.

3. Taxes. In addition to the Lease Payments to be made pursuant to Section 1 hereof, Lessee agrees to indemnify and hold Lessor harmless from and against and to pay Lessor, as additional rent, on demand, an amount equal to all licenses, assessments, sales, use, real or personal property, gross receipts or other taxes, levies, imposts, duties or charges, if any, together with any penalties, fines, or interest thereon imposed against or on Lessor, Lessee or the Property by any governmental authority upon or with respect to the Property or the purchase, ownership, rental, possession, operation, return or sale of, or receipt of payments for, the Property, except any Federal or state income taxes, if any, payable by Lessor. Lessee may contest any such taxes prior to payment provided such contest does not involve any risk of sale, forfeiture or loss of the Property or any interest therein.

4. Lessee's Covenants and Representations. Lessee covenants and represents as follows:
(a) Lessee represents, and will provide an opinion of its counsel to the effect that, it has full power and authority to enter into this Agreement which has been duly authorized, executed, and delivered by Lessee and is a valid and binding obligation of Lessee enforceable in accordance with its terms, and all requirements for execution, delivery and performance of this Agreement have been, or will be, complied with in a timely manner;
(b) All Payments hereunder have been, and will be, duly authorized and paid when due out of funds then on hand and legally available for such purposes; Lessee will, to the extent permitted by State law and other terms and conditions of this Agreement, include in its budget for each successive fiscal period during the term of this Agreement a sufficient amount to permit Lessee to discharge all of its obligations hereunder, and Lessee has budgeted and available for the current fiscal period sufficient funds to comply with its obligations hereunder;
(c) There are no pending or threatened lawsuits or administrative or other proceedings contesting the authority for, authorization of performance of, or expenditure of funds pursuant to, this Agreement; (d) Information supplied and statements made by Lessee in any financial statement or current budget prior to or contemporaneously with the Agreement are true and correct; (e) Lessee has an immediate need for, and expects to make immediate use of, substantially all the Property, which need is not temporary or expected to diminish in the foreseeable future; specifically Lessee will not give priority or parity in the appropriation of funds for the acquisition or use of any additional property for purposes or functions similar to those of the Property. (f) There are no circumstances presently affecting the Lessee that could reasonably be expected to alter its foreseeable need for the Property or adversely affect its ability or willingness to budget funds for the payment of sums due hereunder; and
(g) Lessee's right to terminate this Agreement as specified in Section 2 hereof was not an independently bargained for consideration, but was included solely for the purpose of complying with the requirements of the laws of the State in which Lessee is located.
(h) No lease, rental agreement, lease-purchase agreement, payment agreement or contract for purchase to which Lessee has been a party at any time during the past ten (10) years has been terminated by Lessee as a result of insufficient funds being appropriated in any Fiscal Year. No event has occurred which would constitute an event of default under any debt, revenue bond or obligation which Lessee has issued during the past ten (10) years. (i) Lessee will pay the Lease Payment Due by check, wire transfer, or ACH only.

Attachment 2
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 2

5. Use and Licenses. Lessee shall pay and discharge all operating expenses and shall cause the Property to be operated by competent persons only. Lessee shall use the Property only for its proper purposes and will not install, use, operate or maintain the Property improperly, carelessly, or in violation of any applicable law, ordinance, rule or regulation of any governmental authority, or in a manner contrary to the nature of the Property or the use contemplated by its manufacturer. Lessee shall keep the property at the location stated on the Certificate of Acceptance executed by Lessee upon delivery of the Property until Lessor, in writing, permits its removal, and the Property shall be used solely in the conduct of the Lessee's operations. Lessee shall obtain, at its expense, all registrations, permits and licenses, if any, required by law for the installation and operation of the Property. Any license plates used on the Property shall be issued in the name of the Lessee. If a certificate of title is issuable with respect to the Property, it shall be delivered to the Lessor showing the interest of the Lessor.

6. Maintenance. Lessor shall not be obligated to make any repairs or replacements. At its own expense, Lessee shall service, repair and maintain the Property in as good condition, repair, appearance and working order as when delivered to Lessee hereunder, ordinary wear and tear from proper use alone excepted, and shall replace any and all parts thereof which may from time to time become worn out, lost, stolen, destroyed, or damaged beyond repair or rendered unfit for intended use, for any reason whatsoever, all of which replacements shall be free and clear of all liens, encumbrances and claims of others and shall become part of the Property and subject to this Agreement. Lessor may, at its option, discharge such costs, expenses and insurance premiums necessary for the repair, maintenance and preservation of the Property, and all sums so expended shall be due from Lessee in addition to rental payments hereunder.

7. Alterations.
(a) Lessee may, at its own expense, install or place in or on, or attach or affix to, the Property such equipment or accessories as may be necessary or convenient to use the Property for its intended purposes provided that such equipment or accessories do not impair the value or utility of the Property. All such equipment and accessories shall be removed by Lessee upon termination of this Agreement, provided that any resulting damage shall be repaired at Lessee's expense. Any such equipment or accessories not removed shall become the property of Lessor. (b) Without the written consent of Lessor, Lessee shall not make any other alterations, modifications or improvements to the Property except as required or permitted hereunder. Any other alterations, modifications or improvements to the Property shall immediately become part of the Property, subject to the provisions hereof. Without the prior written consent of Lessor, Lessee shall not affix or attach any of the Property to any real property. The Property shall remain personal property regardless of whether it becomes affixed or attached to real property or permanently rests upon any real property or any improvement thereon.

8. Liens. Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, security interest, pledge, lien, charge, encumbrance or claim on or with respect to the Property, title thereto or any interest therein, except the respective rights of Lessor and Lessee hereunder.

9. Damage to or Destruction of Property. Lessee shall bear the entire risk of loss, damage, theft or destruction of the Property from any and every cause whatsoever, and no loss, damage, destruction or other event shall release Lessee from the obligation to pay the full amount of the rental payments or from any other obligation under this Agreement. In the event of damage to any item of the Property, Lessee will immediately place the same in good repair, with the proceeds of any insurance recovery applied to the cost of such repair. If Lessor determines that any item of Property is lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessee, will either (a) replace the same with like property in good repair or (b) on the next Lease Payment Date, pay Lessor (i) all amounts then owed by Lessee to Lessor under this Agreement, including the Lease Payment due on such date, and (ii) an amount equal to the applicable Option to Purchase Value set forth in Exhibit B.

10. Insurance. Lessee shall either be self-insured with regard to the Property or shall purchase and maintain insurance with regard to the Property. Lessee shall indicate on each Certificate of Acceptance executed in relation to this Agreement its election to be self-insured or company insured with regard to the Property listed on that Certificate of Acceptance. Whether Lessee is selfinsured or company insured, Lessee shall, for the term of this Agreement, at its own expense, provide comprehensive liability insurance with respect to the Property, insuring against such risks, and such amounts as are customary for lessees of property of a character similar to the Property. In addition, Lessee shall, for the term of this Agreement, at its own expense, provide casualty insurance with respect to the Property, insuring against customary risks, coverage at all times not less than the amount of the unpaid principal portion of the Lease Payments required to be made pursuant to Section 1 as of the last preceding Payment Date specified in Exhibit B on which a Lease Payment was made. If insurance policies are provided with respect to the Property, all insurance policies shall be with insurers authorized to do business in the State where the Property is located and shall name both Lessor and Lessee as insureds as their respective interest may appear. Insurance proceeds from casualty losses shall be payable solely to the Lessor, subject to the provisions of Section 9. Lessee shall, upon request, deliver to Lessor evidence of the required coverages together with premium receipts, and each insurer shall agree to give Lessor written notice of non-payment of any premium due and ten (10) days notice prior to cancellation or alteration of any such policy. Lessee shall also carry and require any other person or entity working on, in or about the Property to carry workmen's compensation insurance covering employees on, in or about the Property. In the event Lessee fails, for any reason, to comply with the requirements of this Section, Lessee shall indemnify, save harmless and, at Lessee's sole expense, defend Lessor and its agents, employees, officers and directors and the Property against all risk of loss not covered by insurance.

11. Lessee Gross Negligence. Lessee assumes all risks and liabilities, whether or not covered by insurance, for loss or damage to the Property and for injury to or death of any person or damage to any property, whether such injury or death be with respect to agents or employees of Lessee or of third parties, and whether such property damage be to Lessee’s property or the property of others, which is proximately caused by the negligent conduct of Lessee, its officers, employees and agents. Lessee hereby assumes responsibility for and agrees to reimburse Lessor for all liabilities, obligations, losses, damages, penalties, claims, actions, costs and expenses (including reasonable attorney’s fees) of whatsoever kind and nature, imposed on, incurred by or asserted against Lessor that in any way relate to or arise out of a claim, suit or proceeding based in whole or in part upon the negligent conduct of Lessee, its officers, employees and agents, to the maximum extent permitted by law.

12. No Warranty. ALL WARRANTIES, PROMISES AND SERVICE AGREEMENTS, IF ANY, RELATING TO THE PROPERTY THAT THE MANUFACTURERS OR THE PARTY WHO SUPPLIED THE PROPERTY TO LESSOR (THE “VENDOR”) HAVE MADE TO LESSOR IN CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE PROPERTY ARE HEREBY ASSIGNED TO LESSEE.

Lessee may communicate with Vendor and receive an accurate and complete statement of all such warranties, promises and service agreements, if any. All claims or actions on any warranty so assigned shall be made or prosecuted by Lessee, at its sole expense, upon prior written notice to Lessor. Lessor may, but shall have no obligation whatsoever to participate in such claim or action on such warranty, at Lessor’s expense. Any recovery under such a warranty shall be made payable jointly to Lessee and Lessor. Lessee CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 3
acknowledges that Lessee has selected the Vendor and that Lessee has directed Lessor to acquire the Property from Vendor in connection with this Agreement. Lessee further acknowledges that this Agreement is a “Finance Lease” within the meaning of the Uniform Commercial Code and that Lessee is entitled to the Vendor’s warranties and promises described above, if any. LESSOR HAS

MADE AND MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AND ASSUMES NO OBLIGATION WITH RESPECT TO

THE TITLE, MERCHANTABILITY, CONDITION, QUALITY OR FITNESS OF THE PROPERTY DESCRIBED IN EXHIBIT A FOR ANY PARTICULAR PURPOSE OR THE CONFORMITY OF THE PROPERTY TO ANY SPECIFICATION OR PURCHASE ORDER, OR AS TO THE PROPERTY’S DESIGN, DELIVERY, INSTALLATION OR OPERATION. All such risks shall be borne by Lessee without in any way excusing Lessee from its obligations under this Agreement, and Lessor shall not be liable to Lessee for any damages on account of such risks.

13. Option to Purchase. Provided Lessee has complied with the terms and conditions of this Agreement, Lessee shall have the option to purchase not less than all of the Property which is then subject to this Agreement, "as is" at the payment date, for the Option to Purchase Values set forth in Exhibit B by giving written notice to Lessor not less than sixty (60) days prior to the date specified in Exhibit B for the exercise of such option; provided that upon Lessee's timely payment of all Lease Payments specified in Exhibit B, Lessee shall be deemed to have properly exercised its option to purchase the Property and shall be deemed to have acquired all of Lessor's right, title and interest in and to the Property, free of any lien, encumbrance or security interest except such liens, encumbrances or security interest as may be created, or permitted and not discharged, by Lessee but without other warranties.

Payment of the applicable Option to Purchase Value shall occur on the applicable Lease Payment Date specified in Exhibit B hereto, at which time Lessor shall, unless not required hereunder, deliver to Lessee a quitclaim bill of sale transferring Lessor's interest in the Property to Lessee free from any lien, encumbrance or security interest except such as may be created, or permitted and not discharged, by Lessee but without other warranties. Upon Lessee's actual or constructive payment of the Option to Purchase Value and Lessor's actual or constructive delivery of a quitclaim bill of sale covering the Property, this Agreement shall terminate except as to obligations or liabilities accruing hereunder prior to such termination.

14. Default and Lessor's Remedies.
(a) The occurrence of one or more of the following events shall constitute an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency:
(1) Lessee fails to make any payment hereunder when due or within ten (10) days thereafter; (2) Lessee fails to comply with any other covenant, condition or agreement of Lessee hereunder for a period of the ten (10) days after notice thereof;
(3) Any representation or warranty made by Lessee hereunder shall be untrue in any material respect as of the date made;
(4) Lessee makes, permits or suffers any unauthorized assignment, transfer or other disposition of this Agreement or any interest herein, or any part of the Property or any interest therein; or (5) Lessee becomes insolvent; or admits in writing its inability to pay its debts as they mature; or applies for, consents to or acquiesces in the appointment of a trustee, receiver or custodian for the Lessee or a substantial part of its property; or, in the absence of such application, consent or acquiescence, a trustee, receiver or custodian is appointed for Lessee or a substantial part of its property and is not discharged within sixty (60) days; or any bankruptcy, reorganization, debt arrangement, moratorium, or any proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding is instituted by or against Lessee and, if instituted against Lessee, is consented to or acquiesced in by Lessee or is not dismissed within sixty (60) days. (b) Upon the occurrence of any Event of Default specified herein, Lessor may, at its sole discretion, subject to Section 2 hereof, exercise any or all of the following remedies:
(1) Enforce this Agreement by appropriate action to collect those amounts due hereunder as lease payments for the fiscal year in which the default occurs or, in the event of a default continuing from one fiscal year into a subsequent fiscal year(s), to immediately collect as due the lease payments for each year(s) of the continuing default. Under no circumstance shall Lessor, upon default by Lessee, accelerate or collect as due any future annual lease payments for future years remaining, if any, under this Agreement. Require Lessee to perform its other obligations hereunder in which event Lessee shall be liable for those costs and expenses reasonably incurred by Lessor in securing Lessee’s performance of this Agreement. (2) Take possession of the Property, without demand or notice and without court order or any process of law, and remove and relet the same for Lessee's account, in which event Lessee waives any and all damages resulting therefrom and shall be liable for all costs and expenses incurred by Lessor in connection therewith and the difference, if any, between the amounts to be paid pursuant to Section 1 hereof and the amounts received and to be received by Lessor in connection with any such reletting; (3) Terminate this Agreement and repossess the Property, in which event Lessee shall be liable for any amounts payable hereunder through the date of such termination and all costs and expenses incurred by Lessor in connection therewith;
(4) Sell the Property or any portion thereof for Lessor's account at public or private sale, for cash or credit, without demand or notice to Lessee of Lessor's intention to do so, or relet the Property for a term and a rental which may be equal to, greater than or less than the rental and term provided herein. If the proceeds from any such sale or rental payments received under a new agreement made for the periods prior to the expiration of this Agreement are less than the sum of (i) the costs of such repossession, sale, relocation, storage, reconditioning, reletting and reinstallation (including but not limited to reasonable attorneys' fees), (ii) the unpaid principal balance derived from Exhibit B as of the last preceding Lease Payment Date specified in Exhibit B, and (iii) any past due amounts hereunder (plus interest on such unpaid principal balance at the rate specified in Section 19 hereof, prorated to the date of such sale), all of which shall be paid to Lessor, Lessor shall retain all such proceeds and Lessee shall remain liable for any deficiency; or
(5) Pursue and exercise any other remedy available at law or in equity, in which event Lessee shall be liable for any and all costs and expenses incurred by Lessor in connection therewith. "Costs and expenses," as that term is used in this Section 14, shall mean, to the extent allowed by law: (i) reasonable attorneys' fees if this Agreement is referred for collection to an attorney not a salaried employee of Lessor or the holder of this Agreement; (ii) court costs and disbursements including such costs in the event of any action necessary to secure possession of the Property; and (iii) actual and reasonable out-of-pocket expenses incurred in connection with any repossession or foreclosure, including costs of storing, reconditioning and reselling the Property, subject to the standards of good faith and commercial reasonableness set by the applicable Uniform Commercial Code. Lessee waives all rights under all exemption laws.

CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 4
(6) Under no circumstances shall Lessee be liable under this subsection 14 (b) for any amount in excess of the sum appropriated pursuant to Section 1 hereof for the previous and current fiscal years, less all amounts previously due and paid during such previous and current fiscal years from amounts so appropriated.

15. Termination. Unless Lessee has properly exercised its option to purchase pursuant to Section 13 hereof, lessee shall, upon the expiration of the term of this Agreement or any earlier termination hereof pursuant to the terms of this Agreement, deliver the Property to Lessor unencumbered and in at least as good condition and repair as when delivered to Lessee, ordinary wear and tear resulting from proper use alone excepted, by loading the Property, at Lessee's sole expense, on such carrier, or delivering the Property to such location, as Lessor shall provide or designate at or within a reasonable distance from the general location of the Property. If Lessee fails to deliver the Property to Lessor, as provided in this Section 15, on or before the date of termination of this Agreement, Lessee shall pay to Lessor upon demand, for the hold-over period, a portion of the total payment for the applicable period as set forth in Exhibit B prorated from the date of termination of this Agreement to the date Lessee either redelivers the Property to Lessor or Lessor repossesses the Property. Lessee hereby waives any right which it now has or which might be acquired or conferred upon it by any law or order of any court or other governmental authority to terminate this Agreement or its obligations hereunder, except in accordance with the express provisions hereof.

16. Assignment. Without Lessor's prior written consent, Lessee will not either (i) assign, transfer, pledge, hypothecate, grant any security interest in or otherwise dispose of this Agreement or the Property or any interest in this Agreement or the Property; or (ii) sublet or lend the Property or permit it to be used by anyone other than Lessee or Lessee's employees. Lessor may assign its rights, title and interest in and to this Agreement, the Property and any other documents executed with respect to this Agreement and/or grant or assign a security interest in this Agreement and the Property, in whole or in part. Any such assignees shall have all of the rights of Lessor under this Agreement. Subject to the foregoing, this Agreement inures to the benefit of and is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. No assignment or reassignment of any of Lessor's rights, title or interest in this Agreement or the Property shall be effective with regard to Lessee unless and until Lessee shall have received a copy of the document by which the assignment or reassignment is made, disclosing the name and address of such assignee.

No further action will be required by Lessor or by Lessee to evidence the assignment. During the term of this Agreement, Lessee shall keep a complete and accurate record of all such assignments in form necessary to comply with the United States Internal Revenue Code of 1986, Section 149 (a), and the regulations, proposed or existing, from time to time promulgated thereunder.

17. Personal Property. The Property is and shall at all times be and remain personal property.

18. Title. Upon acceptance of the Property by Lessee hereunder, Lessee shall have title to the Property during the term of this Agreement; however, in the event of (i) an Event of Default hereunder and for so long as such Event of Default is continuing, or (ii) termination of this Agreement pursuant to the provisions of Section 2 hereof, title shall be reverted immediately in and shall revert to Lessor free of any right, title or interest of Lessee unless Lessor elects otherwise.

19. Lessor's Right to Perform for Lessee. If Lessee fails to make any payment or perform or comply with any of its covenants or obligations hereunder, Lessor may, but shall not be required to, make such payment or perform or comply with such covenants and obligations on behalf of Lessee, and the amount of any such payment and the expenses (including but not limited to reasonable attorneys' fees) incurred by Lessor in performing or complying with such covenants and obligations, as the case may be, together with interest thereon at the highest lawful rate, shall be payable by Lessee upon demand.

20. Interest on Default. If Lessee fails to pay any Lease Payment specified in Section 1 hereof within ten (10) days after the due date thereof, Lessee shall pay to Lessor interest on such delinquent payment from the due date until paid at the highest lawful rate.

21. Notices. Any notices to be given or to be served upon any party hereto in connection with this Agreement must be in writing and may be given by certified or registered mail, and shall be deemed to have been given and received forty-eight (48) hours after a registered or certified letter containing such notice, postage prepaid, is deposited in the United States mail, and if given otherwise shall be deemed to have been given when delivered to and received by the party to whom it is addressed. Such notice shall be given to the parties at their respective addresses designated on the signature page of this Agreement or at such other address as either party may hereafter designate.

22. Security Interest. As security for Lessee's covenants and obligations hereunder, Lessee hereby grants to Lessor, and its successors, a security interest in the Property, all accessions thereto and proceeds there from, and, in addition to Lessor's rights hereunder, all of the rights and benefits of a secured party under the Uniform Commercial Code as in effect from time to time hereafter in the State in which the Property is located or any other State which may have jurisdiction over the Property. Lessee agrees to execute, acknowledge and deliver to Lessor in recordable form upon request financing statements or any other instruments with respect to the Property or this Agreement considered necessary or desirable by Lessor to perfect and continue the security interest granted herein in accordance with the laws of the applicable jurisdiction. Lessee hereby authorizes Lessor or its agent or assigns to sign and execute on its behalf any and all necessary UCC-1 forms to perfect the Purchase Money Security Interest herein above granted to Lessor.

23. Tax Exemption. Lessee certifies that it does reasonably anticipate that not more than $10,000,000 of "qualified tax-exempt obligations", as that term is defined in Section 265 (b) 3 (D) of the Internal Revenue Code of 1986 ("the Code"), will be issued by it and any subordinate entities during 2022. Further, Lessee designates this issue as comprising a portion of the $10 million in aggregate issues to be designated as "qualified tax exempt obligations" eligible for the exception contained in Section 265 (b) 3 (D) of the Code allowing for an exception to the general rule of the Code which provides for a total disallowance of a deduction for interest expense allocable to the carrying of tax exempt obligations.

24. Continuing Disclosure. Specifically and without limitation, Lessee agrees to provide audited financial statements, prepared by a certified public accountant not later than six (6) months after and as of the end of each fiscal year. Periodic financial statements shall include a combined balance sheet as of the end of each such period, and a combined statement of revenues, expenditures and changes in fund balances, from the beginning of the then fiscal year to the end of such period. These reports must be certified as correct by one of Lessee's authorized agents. If Lessee has subsidiaries, the financial statements required will be provided on a consolidated and consolidation basis.

25. Miscellaneous.
(a) Lessee shall, whenever requested, advise Lessor of the exact location and condition of the Property and shall give the Lessor immediate notice of any attachment or other judicial process affecting the Property, and indemnify and save Lessor harmless from any loss or damage caused thereby. Lessor may, for the purpose of inspection, at all reasonable times enter upon any job, building or place where the Property and the books and records of the Lessee with respect thereto are located.

CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 5
(b) Lessee agrees to equitably adjust the payments payable under this Agreement if there is a determination for any reason that the interest payable pursuant to this Agreement (as incorporated within the schedule of payments) is not excludable from income in accordance with the Internal Revenue Code of 1986, as amended, such as to make Lessor and its assigns whole. (c) Time is of the essence. No covenant or obligations hereunder to be performed by Lessee may be waived except by the written consent of Lessor, and a waiver of any such covenant or obligation or a forbearance to invoke any remedy on any occasion shall not constitute or be treated as a waiver of such covenant or obligation as to any other occasion and shall not preclude Lessor from invoking such remedy at any later time prior to Lessee's cure of the condition giving rise to such remedy. Lessor's rights hereunder are cumulative and not alternative.
(d) This Agreement shall be construed in accordance with, and governed by, the laws of the State in which the Property is located.
(e) This Agreement constitutes the entire agreement between the parties and shall not be modified, waived, discharged, terminated, amended, altered or changed in any respect except by a written document signed by both Lessor and Lessee. (f) Any term or provision of this Agreement found to be prohibited by law or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without, to the extent reasonably possible, invalidating the remainder of this Agreement.
(g) The Lessor hereunder shall have the right at any time or times, by notice to Lessee, to designate or appoint any person or entity to act as agent or trustee for Lessor for any purposes hereunder. (h) All transportation charges shall be borne by Lessee. Lessee will immediately notify Lessor of any change occurring in or to the Property, of a change in Lessee's address, or in any fact or circumstance warranted or represented by Lessee to Lessor, or if any Event of Default occurs.
(i) Use of the neuter gender herein is for purposes of convenience only and shall be deemed to mean and include the masculine or feminine gender whenever and wherever appropriate. (j) The captions set forth herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.
(k) Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, where permitted by this Agreement.
[Signature page follows]
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the _____ day of ___________________in the year 2022.

Lessor: Government Capital Corporation
________________________________
Authorized Signature
345 Miron Dr.

Southlake, TX 76092
Witness Signature:__________________________
Print Name: _______________________________
Print Title: ________________________________
Lessee: City of Grover Beach
________________________________
Matthew Bronson, City Manager
154 E Eighth Street
Grover Beach, CA 93433
Witness Signature:__________________________
Print Name: _______________________________
Print Title: ________________________________
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 7

EXHIBIT A

DESCRIPTION OF PROPERTY
CALIFORNIA MUNICIPAL LEASE AGREEMENT No.9871 (THE "AGREEMENT")

BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of March 21, 2022

QTY DESCRIPTION
POLICE COMMAND UNIT as follows:

One (1) Mobile Command Unit on a 2021 Ford F59 22’ Walk-in Van Chassis includes below:

VIN# 1F66F5KNXM0A14172
DRIVER/PASSENGER CAB AREA:

One (1) Walk-in van custom cab area finishing area.
 Cover can doors with aluminum panels powder coated Charcoal.  Heavy-duty rubber grab handle on each door.
 Panels covered with vinyl above driver and passenger doors.  Vehicle height sign on dash.
 Insulated black rubber mat on driver and passenger toe plate area.  Insulate walls in kick plate area and install black carpeted panels.  Vehicle shall have a Final State Vehicle Certification and Altered Vehicle Certification as required by Federal Motor Vehicle Safety Standards (FMVSS) 49 CFR Part 567.5 and 567.7  Payload sticker in cab area with vehicle axle load ratings and available axle payload as built.

One (1) Work area on passenger side covered with laminate to match rear countertops and trimmed with vinyl T- molding.

One (1) Custom fabricated console to house electrical distribution components and control panels shall be located in the overhead console above the windshield. The entire console shall be constructed of 3/4" plywood.

The face shall be finished with laminate; the bottom shall be covered with vinyl.

One (1) Red/Clear LED dome light with 3-position switch, red/off/white One (1) Color back up camera system with 7” LCD monitor and day/night camera. Camera includes a microphone for audio commands from a spotter to the driver during backing operations.

One (1) AM/FM stereo with Bluetooth and one (1) pair of 6” x 9” speakers One (1) Blackout curtains with magnetic securement for all cab area windows.

HVAC System
One (1) Fan-tastic Vent model 1450 3-speed reversible 12” power roof ventilator Two (2) Ducted Coleman Mach 8 series low profile air conditioner with wall mounted thermostat.

Includes:
 High Capacity Air Duct manufactured from polystyrene foam laminated with 99% pure polished aluminum inside and out, internally mounted in ceiling
 15,000 nominal Btu/hr air conditioner with condensate pump  Ceiling assembly with 5,600 Btu/hr heat strip
 Wall mounted thermostat
AC Electric System
One (1) Wrico 12-kW 120/240 Vac liquid-cooled gasoline generator, installed in a custom fabricated compartment. Generator features:
 Prime Power (100% output 24/7 at up to 70˚F and 500ft elevation)  USTC Certified Manufacturer
 Sound reduction enclosure
 Four point mounting system
 Four-cycle water cooled gasoline engine
 Radiator cooled, direct mounted and protected enclosure  High-coolant temp and low oil pressure shutdown sensors  Spin-on oil filter and in-line fuel filter
 Single side and bottom service
Compartment shall be constructed to the following specifications:
 Compartment shall be constructed from 0.187” aluminum with all welded seams.  Compartment shall have 0.125” aluminum 2’ box pan doors and 0.125” aluminum frames.  Door frames shall be riveted to the body and welded to the compartments  Doors shall have stainless steel hinges attached to the doors and door frames with stainless machine screws.  Doors shall have slam latches and flush mounted handles.  Doors shall have 0.100” aluminum treadplate panels on interior surfaces.  Doors shall be held open in a 90˚ position with gas charged lift/support cylinders.  Doors shall be sealed with industrial grade neoprone gasket.

CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 8

EXHIBIT A

DESCRIPTION OF PROPERTY
CALIFORNIA MUNICIPAL LEASE AGREEMENT No.9871 (THE "AGREEMENT")

BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of March 21, 2022

QTY DESCRIPTION
One (1) Automatic transfer switch for switching between auto eject and shore power One (1) ACData surge suppressor for protection of entire AC power system  UL listed: UL 1449 3rd Edition
 LED visual verification of status
One (1) 60A-120/240Vac and 12Vdc combined electrical control panel with the following features:
 Generator and shore power main breakers
 Six (6) AC UL listed magnetic/hydraulic branch circuit breakers with LED indicators  Six (6) DC UL listed magnetic/hydraulic circuit breakers with LED indicators  Digital AC meters; voltage, amperage
 Digital DC voltmeter
 Generator stop/start switch, generator hour meter
 120Vac auxiliary control panels as required with UL listed magnetic/hydraulic circuit breakers and LED indicators.

One (1) Kussmaul Auto Eject 20, 20A-120Vac shore power inlet with 25-ft. 20A-120Vac shore power cord. #091- 20WP-120RD.

One (1) Marinco 50A-125/250Vac shore power package including:
 Waterproof shore power inlet with cap
 50ft. 50A-125/250Vac shore power cord
 6-ft. 50A-125/250Vac pigtail
Seven (7) 20A-125Vac duplex receptacle with dual USB charging ports. Receptacle is not dedicated to any installed equipment.
 Two (2) at Rear curb side workstation
 Two (2) conference table base
 Two (2) Curb side out, flip down bench seat base
 One (1) passenger front workstation
Two (2) 20A-125Vac GFCI duplex receptacle. These receptacles are not dedicated to an installed equipment.  One (1) galley (1) Exterior TV compartment
Two (2) 20A-125Vac exterior GFCI duplex receptacle.
 Locate (1) at curb side rear corner, (1) at street side rear corner. Receptacle will be installed with a weatherproof cover.

Three (3) Prewire and make installation provisions for customer provided flash lights. Location: In street side closet, outlets spaced evenly in-between shelves. Closet outles to be used for radio and battery chargers.
Wire chase wire management raceway system located as shown on drawing Two (2) Whelen telescoping tripod LED light pole includes:
 Pioneer PFP1AP (or current model) light fixture. LED, 120 VAC, 1.25 amps  Aluminum tripod with brite dip anodized finish.
 Light fixture shall have a locking swivel joint with a 3/4" diameter NPT threaded base to allow the light to be manually tilted up/down and locked in position by the operator.  Quick-release truck mount brackets.
 Integrated power switch.
 NEMA 5-15 Plug on end of cord to plug light into any exterior outlet Two (2) 50’ 12/3, 15a, yellow extension cord to extend the tripod light away from the truck.

AC WIRING REQUIREMENTS:
 All AC main wiring shall be stranded THHN wire and run in non-metallic Carlton Carflex liquid tight conduit.
 All AC branch circuit wiring shall be stranded THHN wire (AWG 12 minimum) and run in nonmetallic Carlon Carflex liquid tight and Carlon Flex-Plus blue ENT conduit.  All electrical circuits and appliances shall conform to applicable national electric codes.

DC ELECTRICAL SYSTEM:
 Four (4) Lead acid deep-cycle 6Vdc batteries. Batteries shall be installed underbody in slide out weather resistant aluminum compartment. Compartment shall have box pan door with slam latch, flush mount handle, key lock and Kwikee heavy-duty slide assembly. Two (2) batteries will be separated for auxiliary equipment (2.2 hours of capacity @ 75-amp discharge rate) and two (2) batteries will be for communications equipment (2.2 hours of capacity @5-amp discharge rate).

Battery data assumes a usable voltage range of 13.6 to 10.5 volts.  Two (2) electronic converter/chargers, 80-amp minimum output each installed underbody in temperature controlled weather resistant aluminum compartment. Compartment to have thermostatically controlled exhaust fan and draws conditioned from the interior of vehicle.

Converter/charger features:
 Chargers three banks of batteries at the same time.

CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 9

EXHIBIT A

DESCRIPTION OF PROPERTY
CALIFORNIA MUNICIPAL LEASE AGREEMENT No.9871 (THE "AGREEMENT")

BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of March 21, 2022

QTY DESCRIPTION
 UL listed for safety
 Manual reset circuit breaker
 Reverse batter protection
 Electronic current limiting
 High voltage protection
 One (1) master disconnect switch to control the auxiliary battery systems.  12Vdc control panel with seven (7) UL listed magnetic/hydraulic circuit breakers with red LED indicators and 12Vdc digital voltmeter.
 12Vdc auxiliary panels with UL listed magnetic/hydraulic circuit breakers as required.  12Vdc auxiliary digital voltmeter to monitor the communications battery system.  Thirteen (13) Light, Orion 6” LED, neutral white with polished bezel  Seven (7) Light, Orion 6” LED neutral white/red with polished bezel  Five (5) Whelen C9 Series Surface Max LED Scene Light. 12VDC with chrome flange, model number C9SL.
 Five (5) Whelen PELCC LED light with chrome housing.

EMERGENCY LIGHTING/SIRENS
One (1) Whelen 295SLSA6 siren with 9 low current lighting control switches. California title compliant.

Slide Bar Positions Control:

1. Rear (Upper and Lower)

2. Rear (Upper and Lower(, All Uppers, (Two Red M6’s above windshield will be set to steady burn)

3. All
One (1) Whelen SA315P high performance, multi-port 100 watt speaker with Whelen SAK1 mount.

One (1) Whelen TLIR ION-T Series Linear Super-LED Red with clear outler lens & IONFC chrome flange.

One (1) Whelen TLIB ION-T Series Linear Super-LED Blue with clear outer lens & TIONFC chrome flange.

Eight (8) Whelen M6 series, M6RC. Linear Super-LED lighthead with internal flasher, RED LED’s with CLEAR outer lens. Includes M6FC chrome flange.

Eight (8) Whelen M6 series, M6BC. Linear Super-LED lighthead with iternal flasher. BLUE LED’s with CLEAR outer lens. Includes M6FC chrome flange.

One (1) Custom fabricated bracket to mount emergency lights above windshield.

One (1) Soundoff Signal headlight flasher model ETH-FSS-ISO

AUDIO/VIDEO
One (1) Samsung 32” Black LED 1080P HDR Smart HDTV – UN32N5300AFXZA with wall mount bracket.

Two (2) LG 28” B;ack 720P LED HGTBV – 28LM430B-PU with wall mount bracket.

One (1) Samsung TU7000 50” LED TV with wall mount bracket.

One (1) Weatherproof single door exterior work station and TV/monitor compartment.

One (1) SunBrite TV 49” Pro Series Direct-Sun Outdoor 1080p HJDTV SB-4917HD and includes all-weather detachable 20W speaker bar.

One (1) Kramer VS-44H2 4x4 HDMI Matrix Switcher. 4K HDR HDCP 2.2 Four (4) HDMI input jack, wall plate and cable
One (1) JACK model OA8500 Digital HDTV Antenna + Mount with SureLock DTV Signal Meter.

RADIOS
Six (6) Prewire and make installation provisions for communications radio.

Two (2) Single 3”H X 3W X 18’L square aluminum tube antenna raceway on the roof of the apparatus.

COMPUTER NETWORK AND EQUIPMENT
Six (6) RJ-45 Cat6 computer network jack with Cat6 cable routed through Carlon Flex-Plus ENT conduit or raceway.

One (1) Leviton 69270-U24 24-port Cat6 patch cord as required.

One (1) NETGEAR 8-PortGigabit Ethernet Plus Switch
One (1) HP Color Laser Pro Multi-Function Printer
One (1) Cradlepoint E300-C4D cellular router with single modem with roof mounted antenna PROPERTY LOCATION:

Grover Beach Police Department
711 Rockaway Ave.

Grover Beach, CA 93433
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 10

EXHIBIT B
>> SCHEDULE OF PAYMENTS & OPTION TO PURCHASE PRICE <<
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No. 9871
(THE "AGREEMENT")

BY AND BETWEEN
Lessor: Government Capital Corporation and Lessee: City of Grover Beach Schedule dated as of March 21, 2022

PMT PMT DATE TOTAL INTEREST PRINCIPAL OPTION TO PURCHASE NO. MO. DAY YR PAYMENT PAID PAID after pmt on this line 1 3/21/2023 $68,728.69 $11,487.00 $57,241.69 N/A
2 3/21/2024 $68,728.69 $9,715.37 $59,013.32 N/A
3 3/21/2025 $68,728.69 $7,888.91 $60,839.78 $197,052.93 4 3/21/2026 $68,728.69 $6,005.92 $62,722.77 $132,856.46 5 3/21/2027 $68,728.69 $4,064.65 $64,664.04 $67,183.47
6 3/21/2028 $68,728.69 $2,063.29 $66,665.40 $1.00
Grand Totals $412,372.14 $41,225.14 $371,147.00
Interest Rate: 3.095%
Accepted By Lessee: _______________________________________ Matthew Bronson, City Manager
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT Page - 11

INCUMBENCY, INSURANCE, AND ESSENTIAL USE CERTIFICATES
CALIFORNIA MUNICIPAL LEASE AGREEMENT No.9871 (THE "AGREEMENT")

BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of March 21, 2022
I, Wendi Sims , do hereby certify that I am the duly elected or appointed and acting City Clerk (Keeper of the Records), of City of Grover Beach, a political subdivision or agency duly organized and existing under the laws of the State of California that I have custody of the records of such entity, and that, as of the date hereof, the individual(s) named below are the duly elected or appointed officer(s) of such entity holding the office(s) set forth opposite their respective name(s). I further certify that (i) the signature(s) set opposite their respective name(s) and title(s) are their true and authentic signature(s), and (ii) such officers have the authority on behalf of such entity to enter into that certain California Municipal Lease-Purchase Agreement dated as of, March 21, 2022 between such entity and Government Capital Corporation.

Name Title Signature
Matthew Bronson City Manager
IN WITNESS WHEREOF, I have duly executed this certificate hereto this _______day of ____________________, 2022.

By: ____________________________
Wendi Sims, City Clerk
Lessee certifies that property and liability insurance, if applicable, have been secured in accordance with the Agreement and such coverage will be maintained in full force for the term of the Agreement. "Lessor or its Assigns" should be designated as loss payee until Lessee is notified, in writing, to substitute a new loss payee. The following information is provided about insurance:

INSURANCE COMPANY/AGENT'S:

Name: __________________________________________________________________________________________________ Address: ________________________________________________________________________________________________ Email Address: ___________________________________________________________________________________________ Phone Number: ___________________________________________________________________________________________ Policy Number: ___________________________________________________________________________________________ I, Matthew Bronson, City Manager, of City of Grover Beach ("Lessee"), hereby certify that the Equipment, to be leased to the undersigned under the certain Lease Agreement, dated as of March 21, 2022, between such entity and Government Capital Corporation ("Lessor"), will be used by the undersigned Lessee for the following purpose: (PLEASE FILL OUT PRIMARY USE BELOW) PRIMARY USE ____________________________________________________________________________________________ The undersigned hereby represents that the use of the Equipment is essential to its proper, efficient and economic operation.

IN WITNESS WHEREOF, I have set my hand this ________ day of _____________________, 2022.

By Lessee:
_____________________________
Matthew Bronson, City Manager
For Lessee: City of Grover Beach
Agenda Item No. 6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: FY 2021-22 Mid-Year Budget Appropriation Requests

RECOMMENDATION
Approve FY 2021-22 mid-year budget appropriation requests.

BACKGROUND
On February 28, 2022, the Council received a report on the City’s current financial condition and financial projections for revenues and expenditures over the next five years. Overall, the City is in a solid financial condition to address key community needs both for this current fiscal year and the next several years. As part of the February 28th report, staff identified a set of mid-year budget appropriation requests to the General Fund for the Council’s consideration. The Council concurred with these requested items and provided direction for staff to return for formal approval.

In reviewing the mid-year budget status, departments had the opportunity to address any unforeseen needs. Staff is requesting the Council’s approval of mid-year budget appropriation changes for the General Fund totaling $144,938. The appropriations requested for other funds total $104,550 from the Water Fund, $15,000 from the Wastewater Fund, $39,932 from the Citizen Option for Public Safety (COPS) Fund, and $660,500 from the Street Rehab & Repair (Measure K-14) Fund. Attachment 1 provides further detail on these requested appropriation changes.

Pending this approval, the updated projected General Fund year-end estimate for FY 2021-22 is shown below:

FY 2021-22
GF Summary Projected
Beginning Reserves $ 5,074,557 *
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
Ending Reserves $ 5,520,221
% of Operating Expenditures 36%
*Beginning reserve includes $270,188 carryover from FY 2020-21 for authorized appropriations
Staff Report: FY 2021-22 Mid-Year Budget Appropriation Requests Page 2 March 14, 2022

FISCAL IMPACT
The General Fund mid-year appropriations requested for the current FY 2021-22 budget total $144,938 while the Water, Wastewater, COPS and Measure K-14 Fund appropriations requested total $104,550, $15,000, $39,932, and $660,500 respectively.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Approve FY 2021-22 mid-year appropriation requests; or

2. Do not approve appropriation requests; or

3. Provide staff with alternate direction.

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

Attachments

1. List of 2021-22 Mid-Year Budget Appropriation Requests

2. Budget Adjustment Request Form
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
Budget JE #

AGENDA DATE
3/14/2022
AMOUNT
$144,938
$144,938
$2,620
$82,750
$34,568
$25,000
$144,938
JUSTIFICATION: (attach letter if required) - see March 14, 2022 staff report (agenda item #____) REQUESTED BY:

Date Date
APPROVED by the City Council of the City of Grover Beach, State of California, this day of 20____. Agenda Item No.

ATTEST:

APPROVED BY:

Date
DESCRIPTION #

REVENUE SOURCES
#
Approvals/workflow 1.

Dept Head 2.

Admin Svcs

3. City Council

4. City Manager
City of Grover Beach

BUDGET ADJUSTMENT REQUEST
Mid-year Appropriation Request-General Fund
Account PROJECT/GRANT
General Fund 01-000-30000-000
City Pool Vehicles-addt'l 01-166-57000-000

TOTAL REVENUES

EXPENDITURE USES
Community Video Cameras 01-192-52135-000
Self-insurance negative fund
balance
Body Worn Cameras (50%) 01-192-52135-000
01-000-52150-000

TOTAL EXPENDITURES
REVIEWED & APPROVED BY:

City Manager
Department Head Administrative Services
Deputy City Clerk
Attachment 2
Budget JE #

AGENDA DATE
3/14/2022
AMOUNT
$104,550
$10,000
$15,000
$39,932
$169,482
$91,050
$10,000
$10,000
$3,500
$15,000
$5,365
$34,567
$169,482
JUSTIFICATION: (attach letter if required) - see March 14, 2022 staff report (agenda item #____) REQUESTED BY:

Date Date
APPROVED by the City Council of the City of Grover Beach, State of California, this day of 20____. Agenda Item No.

ATTEST:

APPROVED BY:

Date
DESCRIPTION # #
Approvals/workflow 1.

Dept Head 2.

Admin Svcs

3. City Council

4. City Manager
City of Grover Beach

BUDGET ADJUSTMENT REQUEST
Mid-year Appropriation Request-Other Funds page 1
Account PROJECT/GRANT

REVENUE SOURCES
Wastewater Fund Reserves 80-000-30000-000
Water Fund Reserves 81-000-30000-000
Transfer In - Fund 11 11-000-40000-000 2284
COPS Fund Reserves 35-000-30000-000
Increase construction cost
for waterline upgrade 81-900-58030-000 1004

TOTAL REVENUES

EXPENDITURE USES
S. Oak Park rehab change
order for water service
upgrade 11-900-58030-000 2284
Additional funding due to
annual water permit fee
increase 81-162-52160-000
Transfer Out - Fund 81 81-000-50000-000 2284
City Sewer Inspection 80-161-54110-000
Over budget 2 plastic
storage sheds 35-192-57000-000
Body Worn Cameras (50%) 35-192-52135-000

TOTAL EXPENDITURES
REVIEWED & APPROVED BY:

City Manager
Department Head Administrative Services
City Clerk
Budget JE #

AGENDA DATE
3/14/2022
AMOUNT
$660,500
$660,500
$18,000
$382,000
$40,500
$150,000
70,000
$660,500
JUSTIFICATION: (attach letter if required) - see March 14, 2022 staff report (agenda item #____) REQUESTED BY:

Date Date
APPROVED by the City Council of the City of Grover Beach, State of California, this day of 20____. Agenda Item No.

ATTEST:

APPROVED BY:

Date City Manager
Department Head Administrative Services
Deputy City Clerk

TOTAL EXPENDITURES
REVIEWED & APPROVED BY:

Move from FY 2022-23
approved - Design 20-900-58010-000 2295-14
Additional design costs for
Nacimiento area streets
added to scope 20-900-58010-000 2295-14
Additional funding to finish
project-construction 20-900-58030-000 2295-10
Funding for unexpected
change orders-construction 20-900-58030-000 2295-11

TOTAL REVENUES

EXPENDITURE USES
Additional funding to finish
project-mgmt 20-900-58070-000 2295-10

REVENUE SOURCES
Measure K-14 Funding 20-000-30000-000
DESCRIPTION # #
Approvals/workflow 1.

Dept Head 2.

Admin Svcs

3. City Council

4. City Manager
City of Grover Beach

BUDGET ADJUSTMENT REQUEST
Mid-year Appropriation Request-Other Funds page 2
Account PROJECT/GRANT
Agenda Item No. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 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 28.

As of March 8, San Luis Obispo County has had a total of 52,739 confirmed COVID-19 cases with 13 current hospitalizations including one in the ICU and 368 active cases at home. This is only a 1.4% increase in total cases over the past two weeks with a 50% decrease in active cases and a 35% decrease in hospitalizations. In South County, there has been a total of 14,317 confirmed cases (approximately 27% of countywide cases) with 4,733 in Arroyo Grande, 4,298 in Nipomo, 2,542 in Grover Beach, 1,635 in Oceano, and 1,109 in Pismo Beach. Current case numbers in Grover Beach per 1,000 residents (195) continue to be lower than Oceano (234), Arroyo Grande (263), and Nipomo (269), though higher than Pismo Beach (139). There has been approximately a 1.6% increase in cases in Grover Beach over the past two weeks which is consistent with countywide trends in case numbers.

Conditions in the past couple of weeks have continued to improve as seen in the decrease in active cases and hospitalizations from the peak in January. This downward trend 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 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 vaccinated and 26% 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.

Staff Report: COVID-19 Response Update Page 2
March 14, 2022
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. Beginning with a special meeting for the Council held on March 7, Council and Commission meetings are returning this month to in-person meetings with a call-in function available for the public to make comments without having to attend 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. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Updated Council Goals for FY 2022-23

RECOMMENDATION
Approve updates to Council Goals for FY 2022-23 as directed by the City Council at the March 7, 2022 Council Goals Workshop.
____________________________________________________________________________

BACKGROUND
On March 8, 2021, the Council adopted a set of Council Goals for FY 2021-23 following a goalsetting workshop conducted by the Council on February 26, 2021. After reviewing, rating and ranking the candidate goals, the Council adopted a set of collective goals organized into three priority categories:
• Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to begin achieving them should be included in the FY 2021-23 budget.
o Economic Development
o Housing and Homelessness
o Public Safety
o Street Improvements
• Other Important Goals. Goals in this category are important for the City to accomplish, and resources to begin achieving them should be made available in the FY 2021-23 budget where feasible.
o Building and Facility Improvements
o City Beautification and Public Art
o Community Engagement
o Pedestrian, Bicycle and Traffic Safety
• Address as Resources Permit. While it is desirable to achieve these goals over the next two years, doing so is subject to current resource availability. o Environmental Sustainability
o Code Compliance
o Recreation and Community Programs
Attachment 1 shows these three categories of goals, as initially adopted, along with a descriptive statement for each goal. Following approval of these goals, staff developed FY 2021-22 work programs for each Major City Goal to identify and scope the goal so that appropriate resources are allocated, and progress can be measured in achieving the goal over Amended to correct second
page
Staff Report: Updated Council Goals for FY 2022-23 Page 2 March 14, 2022
the fiscal year. The draft Major City Goal work programs were presented to the Council on April 26, 2021 and finalized with the Council’s adoption of the FY 2021-23 budget on June 14, 2021.

Mid-Year Council Goals Implementation Update and Workshop On March 7, 2022, staff presented a mid-year implementation report showing the status to date of achieving these goals in FY 2021-22. The report demonstrated significant progress in carrying out the Major City Goals and Other Important Goals. Overall, 90% of the tasks identified for FY 2021-22 for the Major City Goals have been completed or are currently in progress as shown in the chart below categorized by each goal:

Goal Completed In Progress Pending* Deferred* Total
Economic Development 2 11 - 1 14
Housing &
Homelessness 4 3 - 1 8
Public Safety 1 3 - - 4
Street Improvements 4 2 1 - 7
TOTAL 11 19 1 2 33
*Tasks shown as pending are anticipated to be implemented by the end of the fiscal year while tasks shown as deferred will be implemented in the future.

At the workshop, the staff lead(s) for each Major City Goal presented an overview of the accomplishments within the respective goal area as well as items that have not yet been achieved or deferred due to staff resource, workload constraints, or other factors. Staff then sought Council input and direction in the following areas:

1. Are there any changes that the Council would like to make to the current goals?

2. Are there any key items to particularly focus on in FY 2022-23 in implementing the Council Goals?
After consideration of public comment and deliberation the Council directed staff to make the following updates to the Council Goals for FY 2022-23:

1. Add Water Resiliency as an “Other Important Goal” with an emphasis on the Central Coast Blue recycled water project; and

2. Revise the wording of the existing Environmental Sustainability Goal in the “Address as Resources Permit” category to remove the Central Coast Blue project; and

3. Move the Pedestrian, Bicycle and Traffic Safety Goal from the “Other Important Goals” category and into the “Address as Resources Permit” category.

Attachment 2 shows the updated Council Goals, pursuant to this direction.

FISCAL IMPACT
There is no direct fiscal impact from this agenda item as the cost of implementing specific Council Goals and the Central Coast Blue project are included in the FY 2021-23 budget.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Approve updates to Council Goals for FY 2022-23 as directed by the City Council at the March 7, 2022 Council Goals Workshop; or
Staff Report: Updated Council Goals for FY 2022-23 Page 3 March 14, 2022

2. Provide alternative direction to staff.

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

Attachments

1. FY 2021-23 Council Goals, as adopted on June 14, 2021

2. Updated FY 2022-23 Council Goals
City of Grover Beach
FY 2021-23 City Council Goals

MAJOR CITY GOALS
ECONOMIC DEVELOPMENT. Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.

HOUSING AND HOMELESSNESS. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.

PUBLIC SAFETY. Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.

STREET IMPROVEMENTS. Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulb-outs, street trees and other related improvements.

OTHER IMPORTANT GOALS
BUILDING AND FACILITY IMPROVEMENTS. Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.

CITY BEAUTIFICATION AND PUBLIC ART. Enhance the appearance of the city by improving major entryways, ensuring high signage standards, preserving “legacy trees,” and partnering with the community to pursue new public art projects, such as murals.

COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in City government through programs, initiatives and events to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.

PEDESTRIAN, BICYCLE AND TRAFFIC SAFETY. Continue efforts to make Grover Beach more pedestrian and bicycle friendly by adding and/or enhancing bicycle lanes, sidewalks, street lights, street and crosswalk striping, and other traffic calming and safety measures.

ADDRESS AS RESOURCES PERMIT
ENVIRONMENTAL SUSTAINABILITY. Integrate environmentally sustainable principles, practices and projects into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Blue, Central Coast Community Energy and other technology opportunities to address and off-set climate impacts.

CODE COMPLIANCE. Continue to strengthen the code compliance program and related code sections to be more proactive in inspecting and addressing such issues as, short term rental violations, illegal advertising/business signage, overgrown landscaping and conflicting right-of-way encroachments; continue monitoring the cannabis industry.

RECREATION AND COMMUNITY PROGRAMS. Provide viable recreation, youth, childcare and special event programs designed to meet current and emerging needs, both directly and in partnership with other providers.

Attachment 1
City of Grover Beach
FY 2022-23 City Council Goals

MAJOR CITY GOALS
ECONOMIC DEVELOPMENT. Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.

HOUSING AND HOMELESSNESS. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.

PUBLIC SAFETY. Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.

STREET IMPROVEMENTS. Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulb-outs, street trees and other related improvements.

OTHER IMPORTANT GOALS
BUILDING AND FACILITY IMPROVEMENTS. Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.

CITY BEAUTIFICATION AND PUBLIC ART. Enhance the appearance of the city by improving major entryways, ensuring high signage standards, preserving “legacy trees,” and partnering with the community to pursue new public art projects, such as murals.

COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in City government through programs, initiatives and events to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.

WATER RESILIENCY. Partner with communities throughout the South County to achieve sustainable water resources through initiatives such as the Central Coast Blue recycled water project as well as through water conservation efforts.

ADDRESS AS RESOURCES PERMIT
CODE COMPLIANCE. Continue to strengthen the code compliance program and related code sections to be more proactive in inspecting and addressing such issues as, short term rental violations, illegal advertising/business signage, overgrown landscaping and conflicting right-of-way encroachments; continue monitoring the cannabis industry.

ENVIRONMENTAL SUSTAINABILITY. Integrate environmentally sustainable principles, practices and projects into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Community Energy and other technology opportunities to address and off-set climate impacts.

PEDESTRIAN, BICYCLE AND TRAFFIC SAFETY. Continue efforts to make Grover Beach more pedestrian and bicycle friendly by adding and/or enhancing bicycle lanes, sidewalks, streetlights, street and crosswalk striping, and other traffic calming and safety measures.

RECREATION AND COMMUNITY PROGRAMS. Provide viable recreation, youth, childcare and special event programs designed to meet current and emerging needs, both directly and in partnership with other providers.

Attachment 2
Agenda Item No. 9

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Jim Munro, Commander
John Peters, Chief of Police
SUBJECT: Urgency Ordinance Adopting a Military Equipment Use Policy in Accordance with Assembly Bill No. 481

RECOMMENDATION
Adopt an Urgency Ordinance establishing a Military Equipment Use Policy in accordance with California Assembly Bill No. 481 and in compliance with California Government Code Section 7071.

BACKGROUND
On September 30, 2021, Governor Gavin Newsom signed Assembly Bill 481 into law adding Chapter 12.8, Sections 7070 through 7075 to Division 7 of Title 1 of the Government Code. This new legislation requires that by May 1, 2022, all law enforcement agencies "shall obtain approval from their governing body, via adoption of a military equipment use policy by ordinance prior to the law enforcement agency funding, acquiring, or using equipment identified as military equipment. Staff would emphasize that the term “military equipment”, as used in AB 481, does not necessarily indicate equipment that has been used by the military.

Pursuant to AB 481, equipment deemed to be “military equipment” includes, but is not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, long range acoustic devices, and flashbang distraction devices. The Police Department is committed to using the most up-todate equipment to safeguard the community. Many of the items deemed “military equipment” by AB 481 are in fact already deployed by the Police Department and many other law enforcement agencies across the country in order to specifically reduce the risk to the community and officers.

This equipment helps officers to safely resolve volatile incidents which otherwise might result in a lethal force encounter.

Staff has prepared a draft Military Equipment Use Policy with a list of the current equipment used by the Police Department (Attachment 1, Exhibit A) and prepared an Urgency Ordinance (Attachment 1) for Council’s consideration. Staff is bringing this to the Council as an Urgency Ordinance with an immediate effective date as the City is planning to take ownership of a new mobile command vehicle in late March 2022 with a separate agenda item during this meeting for the lease payment of this vehicle. Such a vehicle is defined as “military equipment” which requires the immediate implementation of this Ordinance.

Staff conducted a community engagement meeting on January 26, 2022, to discuss AB 481 and the equipment used by the Police Department. Staff also posted the draft documents on the Police Department’s website for community review. Staff has not received any public comments in Staff Report: Urgency Ordinance for AB 481 Military Equipment Use Policy Page 2 March 14, 2022
opposition to the equipment used by the Police Department or the policy and ordinance being proposed.

FISCAL IMPACT
There is no fiscal impact from adopting this ordinance.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt an Urgency Ordinance establishing a Military Equipment Use Policy in accordance with California Assembly Bill 481 and in compliance with California Government Code Section 7071; or

2. Provide alternative direction to staff.

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

Attachments

1. Urgency Ordinance with Exhibit A (Military Equipment Use Policy).

Attachment 1
ORDINANCE NO. 22-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA ADOPTING A MILITARY EQUIPMENT USE POLICY AND

DECLARING THE ORDINANCE TO BE AN URGENCY ORDINANCE TO TAKE

EFFECT IMMEDIATELY UPON ADOPTION
WHEREAS, On September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and WHEREAS, Assembly Bill 481 codified in California Government Code Sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy, at a regular meeting held pursuant to open meeting laws, prior to taking certain actions relating to the funding, acquisition, or continued use of military equipment. The term “military equipment” is defined in California Government Code Section 7070; and
WHEREAS, Assembly Bill 481 allows the governing body of a city to approve the funding, acquisition, or continued use of military equipment within its jurisdiction only if it makes specified determinations; and
WHEREAS, the proposed military equipment use policy is found within the attached Exhibit “A” to this ordinance and is incorporated by reference as if set out in full; and WHEREAS, this ordinance and the Grover Beach Police Department’s Military Equipment Use Policy attached as Exhibit “A” which is hereby incorporated by reference as if set out in full, meets the requirements of California Government Code sections 7070, subdivision (d) and 7071 subdivision (a) (1).

NOW THEREFORE, BE IT HEREBY ORDAINED BY THE CITY COUNCIL OF THE CITY OF GROVER BEACH AS FOLLOWS:

PART 1. WHEREAS INCORPORATION. The above WHEREAS provisions are hereby incorporated into this ordinance as if set out in full.

PART 2. DETERMINATIONS
In accordance with Government Code Section 7071, and in addition to information provided to the City Council at the meeting of March 14, 2022, the City Council determines as follows:

1. The military equipment identified in the Grover Beach Military Equipment Use Policy is necessary, because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

2. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

Ordinance No. 22- Page 2
Military Equipment Use Ordinance

3. The military equipment identified in Exhibit “A” is identified as currently owned or to be purchased and is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. The City did not previously have a prior military equipment use policy but as to any prior uses that do not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

5. The City Council, therefore, hereby approves and adopts the attached Exhibit “A” as the City’s Military Equipment Use Policy.

PART 3. URGENCY DECLARATION
The City Council declares this ordinance to be an urgency measure, to take effect immediately upon its adoption pursuant to California Government Code Section 36937 (b). The facts constituting the urgency are as follows:

On September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of “military equipment” by law enforcement agencies. Assembly Bill 481 requires a law enforcement agency to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to the agency funding, acquiring, or using military equipment.

The Grover Beach Police Department has been diligently preparing the Military Equipment Use Policy since AB 481 was signed. Nevertheless, given the extensive requirements and notice provisions in the law, which includes mandatory publication of the proposed policy 30-days prior to public hearing consistent with Government Code Section 7071 (b), and requirements and need to purchase additional equipment as enumerated in Exhibit “A”, the policy and ordinance could not be made ready for hearing in time to accommodate the 30-day delay in effectiveness of the ordinance.

If this ordinance does not become effective immediately upon adoption of the City Council, the City may be prohibited from using “military equipment”, as the term is defined in California Government Code Section 7070, until the ordinance becomes effective. Such a delay would curtail the Grover Beach Police Department’s ability to acquire and use less lethal tools and hinder the effectiveness of the Grover Beach Police Department in preventing and addressing crime in the City, which in turn would put the health, safety, and welfare of citizens at increased risk.

PART 4. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid.

PART 5. All ordinances and parts of ordinances in conflict with those sections amended or added herein are hereby repealed.

Ordinance No. 22- Page 3
Military Equipment Use Ordinance
PART 6. EFFECTIVE DATE. This ordinance will become effective immediately as an urgency ordinance upon approval by the City Council consistent with Government Code Section 36937 (b) and substantiated by the declaration contained with Part 3.

INTRODUCED, APPROVED, and ADOPTED at a regular meeting of the City Council held on March 14, 2022, as an urgency ordinance consistent with Government Code Section 36934, on the following roll call vote, to wit:

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
APPROVED:
__________________________

JEFF LEE, MAYOR
ATTEST:
____________________________________

WENDI SIMS, CITY CLERK
APPROVED AS TO FORM:
_____________________________________
DAVID P. HALE, CITY ATTORNEY
**DRAFT**
Grover Beach Police Department Military Equipment Use Policy (AB 481)

PURPOSE
This policy establishes guidelines for the acquisition, funding, use and reporting of “military equipment”, as the term is defined in Government Code section 7070. This policy is provided to fulfill the obligations set forth in Assembly Bill No. 481. These obligations include but are not limited to seeking approval on specific items deemed to be military equipment and requirements related to compliance, annual reporting, cataloging, and complaints regarding these items.

POLICY
It is the policy of the Grover Beach Police Department that there are legally enforceable safeguards, including transparency, oversight, and accountability measures in place to protect the public’s welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.

PHILOSOPHY
The acquisition of military equipment and its deployment in our communities may impact the public’s safety and welfare. The public has a right to know about any funding, acquisition, or use of military equipment by local government officials, as well as a right to participate in any government agency’s decision to fund, acquire, or use such equipment. Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input.

PROCEDURE
A. DEFINITIONS

1. Governing Body – The elected or appointed entity that oversees the Grover Beach Police Department

2. Military Equipment – Any of a wide variety of items as defined by California Government Code section 7070, subsections (c)(1) through (c)(16).

B. GENERAL

1. The Department shall obtain approval of the governing body annually prior to engaging in any of the following activities:

DRAFT
Exhibit A
a. Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
b. Seeking funds for military equipment including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. c. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
d. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. e. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to general order. f. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment.

2. In seeking the approval of the governing body, the Department shall submit a proposed military equipment use policy, or subsequent amendments, to the City Council and the public via the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.

C. MILITARY EQUIPMENT USE CONSIDERATIONS

1. The military equipment acquired and authorized by the Department is:
a. Necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
b. Reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

2. Military equipment shall only be used by a Department employee only after applicable training, including any course required by the Commission on Peace Officer Standards and Training, has been completed, unless exigent circumstances arise.

D. MILITARY EQUIPMENT REPORTING CONSIDERATIONS

1. The Department shall submit an annual military equipment report to City Council that addresses each type of military equipment possessed by the Department.

2. The Department shall also make each annual military equipment report publicly available on its internet website for as long as the military equipment is available for use.

3. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
a. A summary of how the military equipment was used and the purpose of its use. b. A summary of any complaints or concerns received concerning the military equipment.

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c. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.
d. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
e. The quantity possessed for each type of military equipment. f. If GBPD intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.
i. Within 30 days of submitting and publicly releasing an annual military equipment report, GBPD shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and GBPD’s funding, acquisition, or use of military equipment. This shall occur as a part of GBPD’s presentation to the governing body.

E. CATALOGING OF MILITARY USE EQUIPMENT
All military use equipment kept and maintained by the Grover Beach Police Department shall be cataloged in a way which addresses each of the following requirements:

1. The manufacturers description of the equipment.

2. The capabilities of the equipment.

3. The purposes and authorized uses for which the Department proposes to use the equipment.

4. The expected lifespan of the equipment.

5. The fiscal impact of the equipment, both initially and for on-going maintenance.

6. The quantity of the equipment, whether maintained or sought.

F. COMPLIANCE

1. The Operations Commander will ensure that all Department members comply with this policy.

The Operations Commander will conduct an annual audit with the assistance of the Support Services Commander. The Chief of Police or designee will be notified of any policy violations and, if needed, the violation(s) will be referred to the Internal Affairs Division and handled in accordance with Policy 1014.

All instances of non-compliance will be reported to City Council via the annual military equipment report.

2. Any member of the public can register a questions or concern regarding military use equipment by contacting the Grover Beach Police Department’s Operations Commander via email at [email protected]. A response to the question or concern shall be completed by the Department in a timely manner.

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3. Any member of the public can submit a complaint to any member of the Department and in any form (i.e. in person, telephone, email, etc.). Once the complaint is received, it should be routed to the Internal Affairs Division in accordance with Policy 1014 (Personnel Complaints).

G. COORDINATION WITH OTHER JURISDICTIONS
The Grover Beach Police Department participates in the San Luis Obispo County Regional Special Weapons and Tactics (SWAT) team and works closely with other local, county, state, and federal law enforcement partners. In planned or exigent circumstances, and with the approval of the Chief of Police or their designee, military equipment may be deployed by these law enforcement partners to promote the safety and security of Grover Beach community members. The Chief of Police or their designee will provide information during the annual report on the use of military equipment within the city limits of Grover Beach by other law enforcement partners during Grover Beach Police Department operational incidents.

H. FUNDING
The Department shall seek council approval for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

1. The Department has authority to apply for funding prior to obtaining council approval in the case of exigent circumstances. The Department shall obtain council approval as soon as practicable.

LIST OF MILITARY USE EQUIPMENT

1. Unmanned Aerial Systems (UAS)
a. Description, quantity, capabilities, and purchase cost of current UAS i. DJI Mavic Mini

1. Cost: $500 each

2. Quantity: 2

3. Description: Miniature UAS that can record video with approximately 25 minutes of flight time
ii. DJI Dual Enterprise Advanced

1. Cost: $5,500

2. Quantity: 2

3. Description: UAS that has color and infrared recording camera in addition to a detachable speaker and light. Approximately 30 minutes of flight time.
b. Purpose: To be used for aerial views of major crimes scenes, accident scenes, missing person searches, natural disaster management, SWAT or tactical missions, interior and exterior searches
c. Authorized Use: Only assigned and trained UAS Pilots are authorized to operate GBPD UAS systems. All GBPD Pilots are certified by the FAA.
d. Expected Life Span: 3-5 years
e. Fiscal Impact: Annual maintenance and battery replacement is approximately $2500 DRAFT
f. Training: All GBPD UAS operators are licensed by the Federal Aviation Administration for UAS operations. Additionally, each operator must complete the GBPD training course.

2. Armored Vehicles
a. Description, quantity, capabilities, and purchase cost i. 2008 Lenco Bearcat

1. Cost: $180,000

2. Quantity: 1

3. Description: Armored vehicle that seats 6-8 personnel with an open floor plan that allows rescue of injured personnel or community members. The armor can stop various projectiles providing great safety to the officers and community.
b. Purpose: To be used in response to critical incidents to enhance safety of the community, officers, and to improve scene containment and assist in resolving critical incidents. c. Authorized Use: The use of the armored vehicle is limited to GBPD staff members that have received training in the use and operation of the vehicle. Deployments of the vehicle are to be authorized by a Commander or the Chief of Police. d. Lifespan: Estimated at 20 years
e. Fiscal Impact: Annual Maintenance of approximately $2500 f. Training: All drivers/operators shall attend training in vehicle operations and practical driving instruction.

3. 40mm Launchers and Rounds, Bean Bags
a. Description, quantity, capabilities, and purchase cost i. Penn arms, 40mm single shot launcher

1. Cost: $850

2. Quantity: 6

3. Description: Single shot launcher that fires standard 40mm less lethal ammunition
ii. Penn arms, 40mm multi launcher

1. Cost: $2720

2. Quantity: 1

3. Description: Multiple shot launcher that fires standard 40mm less lethal ammunition
iii. 40mm rounds, CTS 4504

1. Cost: $1,057

2. Quantity: 120

3. Description: Foam projectile shot from a 40mm launcher iv. Bean Bag Rounds, Accusox Brand

1. Cost: $1,200

2. Quantity: 400

3. Description: Kevlar/Cotton sock type material filled with lead pellets DRAFT
b. Purpose: To limit escalation of conflict where employment of lethal force is prohibited or undesirable
c. Authorized Use: Situations for which the launchers/bean bags may be used may include, but are not limited to:
i. Self-destructive, dangerous, and/or combative behavior ii. Riot/crowd control and civil unrest
iii. Circumstances where a tactical advantage can be obtained iv. Potentially vicious animals
v. Training exercised or approved demonstrations
d. Training: Sworn members using 40mm less lethal munitions are trained in their use by POST Certified instructors
e. Lifespan: 15 years
f. Fiscal Impact: Annual maintenance is estimated to be $100 annually

4. Rifles
a. Description, quantity, capabilities, and purchase cost i. Colt M-4 5.56 Cal.

1. Cost: $1300

2. Quantity: 9

3. Description: Gun that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance
ii. Colt M-16 A2 .223 Cal.

1. Cost: $1000

2. Quantity: 2

3. Description: Gun that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance
iii. Accuracy International .308 sniper rifle

1. Cost: $4,600

2. Quantity: 1

3. Description: Gun that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance
b. Purpose: To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun
c. Authorized Use: Use is limited to GBPD officers that are POST certified and trained in rifle use
d. Lifespan: 10-15 years
e. Fiscal Impact: Annual maintenance for the rifle is approximately $100 f. Training: Prior to using a rifle, officers must be trained by POST instructors and must pass an annual qualification.

5. Distraction Devices
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a. Description, quantity, capabilities, and purchase cost i. Defense Tech 15 GM Low Roll

1. Cost: $50/each

2. Quantity: 6

3. Description: Distraction device that delivers a loud “bang” and flashing light
b. Purpose: A distraction device is commonly used when trying to distract dangerous suspects during emergency situations such as hostage calls, search warrants, and violent crimes.

These devices use atmospheric over-pressure and brilliant white light to temporarily distract for a tactical advantage.
c. Authorized Use: Distraction devices are only to be used by trained operators. Use is covered by GBPD policy. These devices are commonly used in high-risk situations commonly handled by a SWAT team.
d. Training: Prior to use, officers must attend and pass training provided by a POST certified instructor.
e. Lifespan: Until used.
f. Fiscal Impact: No annual maintenance.

6. Tear Gas
a. Description, quantity, capabilities, and purchase cost i. Defense Tech Riot Control Discharge Grenade, OC

1. Cost: $35/each

2. Quantity: 6

3. Description: Delivers large plumes of smoke and OC agent ii. Defense Tech Riot Control Discharge Grenade, CS Smoke

1. Cost: $25/each

2. Quantity: 4

3. Description: Delivers large plumes of smoke and CS agent iii. Defense Tech Triple Chaser Riot Control Discharge Grenade, CS

1. Cost: $44/each

2. Quantity: 2

3. Description: Delivers large plumes of CS agent
b. Purpose: To limit the escalation of conflict where employment of lethal force of prohibited or undesirable.
c. Authorized Use: Only officers trained in the use of chemical agents by a POST certified trainer are authorized to deploy chemical agents.
d. Training: Sworn members using chemical agents are to attend a POST certified training prior to use.
e. Lifespan: 5 years from manufacturing date.
f. Fiscal Impact: No annual maintenance.

7. Mobile Command Vehicles
a. Description, quantity, capabilities, and purchase cost i. 1994 Chevrolet Command Vehicle
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1. Cost: Donated, no cost

2. Quantity: 1
ii. 2021 LDV Command Vehicle (To be acquired in 2022)

1. Cost: $372,000

2. Quantity: 1
b. Purpose: To be used as a mobile command post for large incidents, crime scenes, community events, emergencies, and tactical situations
c. Authorized Use: Only officers trained the operation of the mobile command vehicle may drive/operate the vehicle.
d. Lifespan:
i. 1994 Chevrolet: 1 year
ii. 2021 LDV MCV: 20 years
e. Fiscal Impact: Annual Maintenance of $1000
f. Training: Drivers/Operators of the MCV shall have approved GBPD training and appropriate State of California drivers license.

8. Military Surplus Generator
a. Description, quantity, capabilities, and purchase cost i. 2010 IPTHR Utility Trailer with Generator

1. Cost: No cost

2. Quantity: 1

3. Description: Portable generator used to create electric power b. Purpose: To be used during situations requiring electric power. c. Authorized Use: Users are limited to those that have been provided department training on the use and setup of the equipment.
d. Training: Training on the use and operation is provided by staff of the GBPD who are trained in the operation of the equipment.
e. Lifespan: 10 years
f. Fiscal Impact: None

9. Military Surplus Mobile Kitchen
a. Description, quantity, capabilities and purchase cost i. Unknown year Utility Trailer with Mobile Kitchen

1. Cost: No Cost

2. Quantity: 1

3. Description: Mobile kitchen and food preparation when needed in certain emergency situations.
b. Purpose: To be used during situations requiring food preparation on a large scale. c. Authorized Use: Users are limited to those that have been provided department training on the use and setup of the equipment.
e. Lifespan: 10 years
f. Fiscal Impact: None

10. Riot Helmets
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a. Description, quantity, capabilities and purchase cost i. Protech Helmets

1. Cost: $575 each

2. Quantity: 25

3. Description: Black strap closure helmets with ballistic protection b. Purpose: To be used during situations requiring proper head protection against objects or gunfire.
c. Authorized Use: Users are limited to those that have been provided department training on the use and setup of the equipment.
e. Lifespan: 10 years
f. Fiscal Impact: None

11. Riot Shields
a. Description, quantity, capabilities and purchase cost i. Plastic Shields

1. Cost: $275 each

2. Quantity: 8

3. Description: black shield with arm and shoulder mounting straps b. Purpose: To be used during situations requiring protection of officers from objects. c. Authorized Use: Users are limited to those that have been provided department training on the use and setup of the equipment.
e. Lifespan: 10 years
f. Fiscal Impact: None

12. Riot Batons
a. Description, quantity, capabilities and purchase cost i. Batons

1. Cost: $25 each

2. Quantity: 8

3. Description: Black riot baton
b. Purpose: To be used during situations requiring protection of officers from hostile crowds.
c. Authorized Use: Users are limited to those that have been provided department training on the use and setup of the equipment.
e. Lifespan: 10 years
f. Fiscal Impact: None
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Agenda Item No. 10

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer John Peters, Police Chief
Erin Wiggin, CIP Manager
SUBJECT: North Oak Park Boulevard Improvements Review and West Grand Avenue Parkways

RECOMMENDATION
Receive an update on recent traffic safety improvements on North Oak Park Boulevard near the intersection with West Grand Avenue and provide direction on the continued implementation of these and other traffic safety improvements near the intersection including parkways on West Grand Avenue.

BACKGROUND
The Council identified Street Improvements as a Major City Goal for FY 2021-23 along with Pedestrian, Bicycle and Traffic Safety as an Other Important Council Goal. At the July 1, 2019 Council meeting, the Council provided comments and initial direction regarding improvement options on North Oak Park Boulevard including various changes at the intersection with West Grand Avenue intended to improve traffic, bicycle and pedestrian safety. These improvements at the intersection were based on previous studies to identify ways of improving traffic safety at this major intersection in the city. Staff shared proposed improvements to the Council on April 20, 2020 and January 25, 2021 and based on direction received from the Council implemented a number of improvements including:

1. “No right turn on red” signs at the intersection coupled with signal timing adjustments to provide additional gap time between vehicle and pedestrian crossing movements.

2. Re-striping South Oak Park Boulevard from West Grand Avenue to Long Branch Avenue to relocate the existing transition from two lanes to one lane from just north of Long Branch Avenue nearer to the main Vons driveway where there is better visibility. This also provided room for the southbound bike lane to extend to West Grand Avenue and eliminated the second southbound travel lane until Manhattan Avenue where the current roadway configuration allowed for two southbound lanes again until the recent completion of the South Oak Park Boulevard improvement project which reduced the vehicle lanes to one in each direction to Mentone Avenue.

3. Re-striping North Oak Park Boulevard from Ramona Avenue to the intersection with West Grand Avenue to reconfigure the turn lanes and lane transition and adding flexible poles to reduce vehicle conflicts and illegal left turns crossing the striped center median.

The improvements identified above have been in place since July 2021 and since that time there have been no accidents between Ramona Avenue and West Grand Avenue involving vehicles, bicycles or pedestrians. In contrast, in the five-year period prior to the improvements there were Staff Report: North Oak Park Boulevard Improvements and West Grand Avenue Parkways Page 2 March 14, 2022
13 vehicle accidents in this block related to illegal left-hand turns with no pedestrian or bicycle accidents. Based on this information, it appears that the improvements have resulted in the desired safety enhancements at this busy intersection and staff would recommend the continued use of the restriping and lane configuration along with the flexible poles to reduce vehicle conflicts and illegal left turns across the striped center median.

However, there have been impacts on traffic on North Oak Park Boulevard from the “no right turn on red” prohibition which has resulted in excessive queuing of vehicles that can block the intersection of North Oak Park Boulevard and Ramona Avenue at peak times. Given the relatively low volume of pedestrian traffic crossing the intersection, staff is recommending the Council consider removal of this prohibition and instead consider alternate signal timing modifications that would result in adequate pedestrian safety while reducing the extent of vehicle queuing. As an example, the pedestrian crossing lights could be illuminated a few seconds earlier than the traffic lights to provide more time for pedestrians to cross the street. Staff is also seeking direction on whether to keep the flexible poles in place to reduce illegal left turns or to consider making this change more permanent by installing a raised center median in the same location.

West Grand Avenue Parkways
The current Capital Improvement Program includes a $2.1 million project for a pavement rehabilitation project on West Grand Avenue between 11th Street and Oak Park Boulevard. On October 12, 2021, staff presented the project design to the Council with construction currently scheduled in FY 2024-25 given the timing of other major street projects before then. The current configuration west of the intersection with Oak Park Boulevard includes raised parkways with palm trees that create a landscaped gateway to the city (refer to Attachment 3). These parkways also provide narrow protected bike lanes between the parkways and sidewalks. On the north side of West Grand Avenue, the location of the parkway significantly limits available driveway access to the parking lot of the business at the intersection (Burger King) such that the driveway can only be used to exit onto West Grand Avenue westbound. Coupled with the recent improvements to North Oak Park Boulevard, safe and legal access to Burger King is now limited to southbound traffic on North Oak Park Boulevard.

At that October 12th Council meeting, Council provided direction to staff to explore options to provide two-way access to this business from West Grand Avenue which are shown in the table below. Attachments 1-3 show full removal of the parkways, partial removal, and the intersection as existing.

Option Advantages Disadvantages
1 – Full Removal of
Parkways, relocate palm
trees and landscaping to
areas behind the corner
ramps
-Allows for wider driveway
and ingress/egress from
westbound traffic
-Gateway landscaping
potentially maintained
-Highest cost ($800,000)
-Ingress/egress to Burger
King eastbound on West
Grand Avenue not possible
due to westbound left turn
queuing length
-Relocation of palm trees
could block existing Burger
King sign
-Work required on private
property
Staff Report: North Oak Park Boulevard Improvements and West Grand Avenue Parkways Page 3 March 14, 2022
Option Advantages Disadvantages
2 – Full Removal of
Parkways, do not relocate
palm trees, widen sidewalk to
create bulb-outs and
restricted ingress/egress
-Allows for wider driveway
and ingress/egress from
westbound traffic
-Widened sidewalk and bulbouts improves pedestrian and traffic safety
-No work on private property
or trees blocking sign
-Significant cost ($600,000)
-Ingress/egress to Burger
King eastbound on West
Grand Avenue not possible
due to westbound left turn
queuing length
-Eliminates bike lane at
intersections
3 – Partial Removal of
Parkways to allow space for
eastbound ingress driveway
-Allows for wider driveway
and ingress/egress from
westbound traffic
-Gateway landscaping
partially maintained
-Lower cost
-$300,000
-Additional westbound
bike/vehicle conflicts and
visibility concerns
-Ingress/egress to Burger
King eastbound on West
Grand Avenue not possible
due to westbound left turn
queuing length
-Visibility issues with
eastbound bike lane
4 – No change -Lowest cost
-Gateway improvements
remain in place
-Access to Burger King
limited to southbound Oak
Park Boulevard
-No improvements to
bicycle/vehicle conflicts
The Council is asked to provide direction on the preferred option(s) for staff to return to the Council with further information and refined cost estimates. The timing of this work is proposed to remain in FY 2024-25 as part of the related West Grand Avenue improvement project. As an alternative, parkway modifications could be completed prior to the street project but would delay other projects anticipated to occur prior to FY 2024-25. Pending Council direction, staff can discuss potential impacts to future projects from carrying out parkway modifications sooner as part of the draft FY 2023-2027 Capital Improvement Program that will be reviewed by the Council on March 28.

FISCAL IMPACT
The cost for West Grand Avenue parkway changes will depend on the option that is selected.

The most likely funding source for this work would be the General Fund with Gas Tax funds serving as a potential allocation to reduce the General Fund burden if this work was carried out in future years given additional Gas Tax availability.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Review recently constructed improvements on North Oak Park Boulevard and provide direction; and review options for improving access to the Burger King property and provide direction for further design development; or

2. Provide staff with additional direction.

Staff Report: North Oak Park Boulevard Improvements and West Grand Avenue Parkways Page 4 March 14, 2022

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

Attachments

1. Diagram – Intersection View – Median Elimination

2. Diagram – Intersection View – Partial Removal

3. Diagram – Intersection View - Before

Agenda Item No. 11

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 14, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
Bruce Buckingham, Community Development Director
David Hale, City Attorney
SUBJECT: Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use and Approval of an Assignment of Purchase Agreement, Escrow Documents, Purchase Contract, Agency Use Plan, Resolution Adopting the Plan, and a Categorical Exemption under CEQA Guidelines, Section 15303

RECOMMENDATION
Approve acquisition of property at 955 South 4th Street (APN No. 060-542-014), including approval of an assignment of purchase agreement, escrow documents, purchase contract, agency use plan, resolution adopting the plan, and approval of a Categorical Exemption under California Environmental Quality Act (CEQA) Section 15303 for $425,000 in the City’s allocation of American Rescue Plan Act funding with the intent to enter into a long-term ground lease with the 5Cities Homeless Coalition to develop and operate a homeless housing facility use and authorize the City Manager to execute the acquisition.

BACKGROUND
Homelessness is a significant challenge not only in Grover Beach but throughout San Luis Obispo County and California. The Council has recognized the importance of addressing this challenge with the selection of Housing and Homelessness as a Major City Goal for FY 2021-23 which states:

Housing and Homelessness. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and related sheltering issues in the city and region.

This issue has strong resonance with the community as evident by the City’s recent community survey conducted in fall 2021. Homelessness was identified by respondents as the most important issue facing the city (cited by 35% of respondents) exceeding the next most cited issues of road and infrastructure improvements (27%), affordable housing (11%), and crime and safety (11%).

When asked if the City should do more to address homelessness, 70% of respondents indicated yes with the most supported activity to address homelessness being temporary or permanent shelter space for homeless individuals (46%) followed by outreach to homeless on accessing services and housing (39%) and clearing encampments and enforcing camping ordinances (28%).

Staff Report: Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use Page 2 March 14, 2022
The City has a long-standing record of working with partner agencies and organizations on addressing homelessness including securing over $1,000,000 in past years in Community Development Block Grant (CDBG) funding for eviction prevention and security deposits administered by the 5Cities Homeless Coalition (5CHC) to prevent homelessness among Grover Beach residents. The City also received over $450,000 in additional CDBG funding in 2021 from the federal CARES Act to support the South County winter warming center, provide assistance to homeless individuals including mental health services, and expand child care opportunities which supports employment. The City also declared a homeless shelter crisis in October 2018 along with other jurisdictions in San Luis Obispo County given the increased number of unsheltered individuals in our communities. San Luis Obispo County has one of the highest percentages of unsheltered homeless individuals in the nation with limited shelter space available in the county and none in South County. The updated Point-In-Time Count which occurred on February 23, 2022 will provide further information on the current number of homeless individuals in the County.

However, the City continues to face increased challenges with homelessness in our community.

The City’s overarching goals with addressing homelessness are to demonstrate compassion with enabling unhoused individuals to obtain needed housing and services while ensuring order with maintenance and cleanliness of public spaces including public parks. Homelessness is an issue much larger than the traditional role of cities and while cities did not create homelessness, we are having to address it and the impacts it creates in our communities. This is truly a regional issue with substantial engagement by the County in establishing safe parking areas, coordinating trash removal efforts, providing social and human services, and facilitating grant funding opportunities.

The City’s efforts and those of other public agencies are complicated by the legal ramifications of the Martin vs. Boise case. This case law from the 9th Circuit Court of Appeals significantly limits enforcement of camping prohibitions in public spaces if there is no designated shelter space or public space for unhoused individuals to go. This law governs communities throughout the western United States and has a profound impact on the ability of local government to legally address homelessness particularly in areas like South County that do not currently have available shelter space.

Efforts to Provide Shelter Space
Providing shelter space is critical to enable homeless individuals to secure stable housing and services while enabling the City to enforce camping prohibitions in public spaces. The City has worked diligently with other cities along with the County and 5CHC on potential sites in the South County area for additional shelter spaces both temporary and permanent. 5CHC has looked at potential sites for shelter space over the past 10 years throughout the South County area but has not been able to secure suitable and available property.

A potential site for transitional housing, a winter warming center, and case management services and administrative offices was identified by 5CHC and People’s Self-Help Housing (PSHH) in 2019 at the former Hillside Church in Grover Beach using approximately $2 million in Homeless Emergency Aid Program grant funding from the State. However, this site did not move forward given a property ownership dispute and the funds were reallocated to other homeless-related facilities including transitional housing for PSHH in Pismo Beach and case management and administrative offices for 5CHC in Grover Beach.

More recently, 5CHC is working with the County on a temporary emergency shelter on County property at 286 South16th Street in Grover Beach. The shelter concept involves installation of up to 20 “cabins” roughly 100 square feet in size that would have 24/7 case management and support to clients. 5CHC will also install bathing and bathroom facilities, administrative offices, communal Staff Report: Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use Page 3 March 14, 2022
spaces, shaded eating and resting area, and a storage area. The facility will be managed and monitored 24/7 with 5CHC staff with security cameras and privacy fencing installed. This temporary emergency shelter is anticipated to be operational this spring through at least December 2022 and will serve as the first shelter space in South County. Despite the significance of this initial shelter space, it is just a temporary location and only provides 20 housing units towards meeting the need for shelter space in South County.

Proposed Property Acquisition for Homeless Housing Facility Use As referenced earlier, 5CHC has been working diligently to locate suitable and available property in South County for homeless facilities which could include an emergency shelter, youth and family shelter, adult transitional housing, winter warming center, day use shelter, and/or safe houses that are more residential in nature. The City has allocated up to $800,000 in the City’s American Rescue Plan Act (ARPA) $1.6 million funding this year towards homeless facilities and services in Grover Beach in a flexible manner based on the needs with acquisition of any property for this purpose requiring Council approval.
5CHC recently identified vacant property for sale at 955 South 4th Street that could be developed as a homeless facility. This property is 0.44 acres and potential uses include another emergency shelter in conjunction with the Long Branch cabins, youth and family shelter, or adult transitional housing. Attachment 2 shows the location of this property. 5CHC’s preference for this site is to create non-congregate temporary housing that could serve as bridge housing or an emergency shelter. Development of the site as an emergency shelter will give the City additional options in the enforcement and relocation of homeless encampments though clients at the site would also come from other South County communities. The property is zoned Coastal Industrial but located in the City’s “Emergency Shelter Overlay Zone”. The property is adjacent to the future Central Coast Blue treatment facility on Barca Street with a 30-foot easement needed through the property for future project utility lines. 5CHC would be expected to provide a similar level of management and monitoring as they will for the Long Branch cabins with the Police Department also serving as the lead in responding to safety issues. 5CHC is in escrow for the property with a sales price of $420,000 with the escrow expiring on March 22. Given the City’s allocation of ARPA funding and the adjacency of the Central Coast Blue project, staff is recommending that the Council approve an acquisition of the property using the City’s ARPA allocation of $425,000 which includes anticipated closing costs. The purchase agreement and request for assignment is shown in Attachment 1 Exhibit B. Pending such approval, staff would finalize a long-term ground lease with 5CHC for the development and operation of a homeless housing facility as the City is not in a position to carry this out. A draft version of the ground lease is included as Attachment 1 Exhibit C and staff would anticipate bringing a final version of the ground lease for Council approval in April. Staff would also anticipate bringing a letter of support for a Project Homekey grant application for State funding to the Council in conjunction with this ground lease given an upcoming grant application deadline. The timeframe for opening a facility on this property would be based on obtaining grant funding, but could occur as early as 2023.

It is important to note that City’s proposed funding for this action would just cover property acquisition and 5CHC would seek funding for this development and operation from a variety of sources most notably the Project Homekey funds from the State and potentially the County and other agencies in the South County. This would be one of many homeless facilities needed in our area to increase shelter space and the City will continue to work with other agencies in South County in locating facilities throughout our region as a mix of emergency shelters, safe parking areas, transitional housing, group homes, and other facilities is key to making progress on this Staff Report: Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use Page 4 March 14, 2022
critical issue. The proposed project is Categorically Exempt pursuant to CEQA Guidelines Section 15303, because it meets the criteria established for new construction of facilities not greater than 10,000 square feet as documented in the attached resolution.

Surplus Land Act
Lastly, staff would acknowledge some uncertainty related to this property acquisition pertaining to the State Department of Housing and Community Development (HCD). A recent state law (Surplus Land Act) is codified within Government Code section 54221 et seq. and defines extensive procedures wherein local agencies are required to submit written notices of availability to public entities or developers interested in developing housing projects if the governmental agency has surplus property they no longer need for further development or use. Government Code Section 54221 outlines those procedures wherein an agency can define a use for their property that would allow them to sell or lease the property without compliance with the Surplus Land Act (SLA). Section 54221 (C) (1) requires the City to adopt an “Agency Use Plan” that would identify a specific property along with the use for the property by the City if it desires to be exempt from the SLA. If an agency adopts such a plan, then HCD should permit the lease of the subject property without the necessity to comply with the Act. Approval of an agency use plan takes the property out of the definition of surplus property.

The City Attorney has been working with HCD to seek concurrence that the City has the authority to enter into the subject agreements to purchase and ground lease the property without complying with the SLA. The City of Grover Beach Siting Plan to Address Homelessness shown in Attachment 1 Exhibit A is the City’s proposed planning document that defines the use of the property and the need for the City to not only retain ownership of the property but to ground lease the property to 5CHC for the construction and operation of the subject homeless housing facility.

While the City has not yet received a formal response from HCD, this business structure was already approved by HCD when the City of Sacramento submitted a similar project for a ground lease to construct a homeless shelter for terminally ill individuals in December 2021. Staff and the City Attorney believe this project is very similar to the Sacramento development and do not see any distinctions between them that would inhibit HCD from permitting the City to ground lease the property to 5CHC after it is acquired. The Council is required to approve the attached Agency Use Plan before HCD will grant permission to ground lease the property. Upon approval of this plan by the Council, the City Attorney will submit a request for a written determination from HCD which will be required prior to finalizing a ground lease with 5CHC.

FISCAL IMPACT
The cost of this property acquisition is $425,000 which would be funded through the City’s ARPA funding allocation with no General Fund operating budget impact. A budget adjustment shown in Attachment 3 is needed to move the already approved budget appropriation from the economic development account to the capital purchase account.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Approve acquisition of property at 955 South 4th Street (APN No. 060-542-014) for $425,000 in the City’s allocation of American Rescue Plan Act with the intent to enter into a long-term ground lease with the 5Cities Homeless Coalition to develop and operate a homeless housing facility use and authorize the City Manager to execute the acquisition; or
Staff Report: Property Acquisition for 955 South 4th Street for Homeless Housing Facility Use Page 5 March 14, 2022
2) Do not approve acquisition; or
3) Provide alterative direction to staff.

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

Attachments

1. Resolution
Exhibit A Agency Use Plan
Exhibit B Purchase Agreement, Escrow Documents and Assignment Request Exhibit C Draft Ground Lease

2. Site Location

3. Budget Adjustment
Attachment 1
RESOLUTION NO. 22-__

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

CALIFORNIA APPROVING AN AGENCY USE PLAN FOR A

NONCONGREGATE TEMPORARY HOUSING SHELTER, AN ASSIGNMENT

OF ESCROW DOCUMENTS AND PURCHASE AGREEMENT, AND

ACQUISITION OF PROPERTY
WHEREAS, there have been a proliferation of homeless encampments within the City of Grover Beach; and

WHEREAS, these encampments have been located in areas that are environmentally sensitive or wherein said encampments have created tension with other adjacent land uses; and WHEREAS, the City has been working with local nonprofit organizations in attempting to afford sleeping and camping accommodations and other related services for the homeless, and WHEREAS, due to legal requirements for the establishment of homeless shelters created by the case of Martin v. City of Boise, 920 F.3rd. 584 (9th Cir. Court of Appeals, 2019) the city is restricted in its ability to further any reasonable enforcement of its sleeping and camping ordinances; and
WHEREAS, by the City acquiring the subject property, APN No. 060-542-014 and working with local non-profit organizations for the development of these emergency and homeless shelters, the city can implement one of its long-term goals; and WHEREAS, the acquisition of the subject property is necessary for the city to be able to maintain municipal uses for the subject property for numerous public works utility lines required for the Central Coast Blue water reclamation project without litigation related to eminent domain; and
WHEREAS, the development of the referenced acquisition and entering into a ground lease is critical since the current escrow would need to be assigned to the city to construct this facility and entering into the ground lease would allow the transfer of title to the city for implementation of the Plan and the ability to partner with private nonprofit organizations for construction and operation of this facility.

WHEREAS, surplus land is land owned by a local agency that is determined to be no longer necessary for the agency's use; and
WHEREAS, AB 1486 requires local agencies to adopt a resolution declaring property as either “surplus” or “exempt surplus” at a regular public meeting of the agency’s governing body; and
WHEREAS, the requirements of the Surplus Land Act (Government Code Section 54221 et seq.) are not applicable to property that is necessary for an “agency’s use,” which definition includes land that is planned to be used pursuant to a written plan adopted by the local agency’s governing board; and
WHEREAS, because the subject property is to be developed and used pursuant to the City’s Siting Plan to Address Homelessness, the subject property is necessary for the City’s use and is therefore not subject to the Surplus Land Act.

NOW, THEREFORE, BE IT RESOLVED:

1. That the above stated WHEREAS provisions are hereby incorporated by reference herein as if set out in full and carry the same weight and authority as all other provision of this resolution.

2. The City Council, with this action, approves the Agency Use Plan for the subject property otherwise referred to as the Site Plan to Address Homelessness, attached hereto, as a binding document designating the subject site, APN No. 060-542-014, 955 4th Street, Grover Beach, CA. as the location for the development of a noncongregate housing shelter otherwise referred to as a low barrier navigation center, to add further city capacity for homeless housing and emergency shelters along with other services to the homeless while establishing greater flexibility for the City to implement and maintain land uses that are compatible with each other along with the city’s general plan and zoning.

3. The City Council directs the City Manager to implement the programmatic strategies contained within the Site Plan to Address Homelessness to add further capacity for noncongregate homeless shelters or low barrier navigation centers.

4. The City Council further directs the City Manager to begin implementation of the Site Plan to Address Homelessness immediately. The City Manager or City Manager’s designee is authorized to establish the Site Plan to Address Homelessness with initial resources to be transferred from the City’s General Fund using American Rescue Plan (ARP) funding.

The City Manager is authorized to implement any and all financial transactions needed to properly manage and account for the City’s efforts necessary to implement and administer the Site Plan to Address Homelessness including the following activities:
a) Adjust revenue and expenditure budgets in General Fund related to all federal, state, county and ARP funding received by the City in support of this program. b) Adjust interdepartmental transfers related to the Site Plan to Address Homelessness and efforts to reduce homelessness as needed for the duration of that program. c) Adjust the project budget based on available resources from Council approved use of ARP funding.

5. That the City Council directs the City Manager to work with the 5 Cities Homeless Coalition (5CHC) to acquire the subject property defined with the Site Plan to Address Homelessness, including entering into the Assignment of the Purchase Agreement and Escrow Documents, entering into the purchase agreement, and negotiating a ground lease with 5CHC for a 55 year lease to accommodate a low barrier navigation center, attached hereto and incorporated by reference.

6. The City Council hereby finds entering into a ground lease with 5CHC is necessary and required to assure the implementation of the Site Plan to Address Homelessness and to assure development and construction of the facility and further directs the City Manager to negotiate a ground lease with 5CHC for the use of the property as a noncongregate housing shelter or low barrier navigation center in substantially the form as attached hereto. The City Manager shall bring the ground lease back to the City Council for final approval.

7. Based on the oral and documentary evidence received at the hearing and contained in the staff report on the Site Plan to Address Homelessness, along with the escrow documents, purchase agreement and ground lease, the City Council finds the Site Plan to Address Homelessness is Categorically Exempt (Class 3) from the provisions of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because the project use is allowed in the CI zone, would not exceed 10,000 square feet of new building, will not involve the use of hazardous substances, and has the necessary public services and facilities available to serve the site, Further the project is not located in an environmentally sensitive area and will not impact an environmental resource; will not have a cumulative effect of successive projects of the same type, in the same place, over a period of time because the project impacts are the same or less than those allowed in the same zone and area; the project will not have a significant effect on the environment due to unusual circumstances; the project is not located on a designated scenic highway or scenic resource; the project is not located within an official state scenic highway; the project is not located on any hazardous list pursuant to Section 65962.5 of the Government Code; and the project site is not a historical resource and will not cause a substantial adverse change to the significance of a historic resource. Additionally, the plan is exempt under Government Code section 65660(b) to the extent the plan covers low barrier navigation centers as defined by the Government Code.

On motion by ______ seconded by _______, and on the following roll-call vote, to wit:

AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular meeting of the City Council of the City of Grover Beach, California this 14th day of March, 2022. __________________________________

JEFF LEE, MAYOR
ATTEST:
_______________________________

WENDI SIMS, CITY CLERK
Attachments: Exhibit A, Siting Plan To Address Homelessness Exhibit B, Assignment of Escrow Agreement, Escrow Documents, Purchase Agreement
Exhibit C, Draft Ground Lease
Attachment 1 Exhibit A

CITY OF GROVER BEACH

SITING PLAN TO ADDRESS HOMELESSNESS
March 14. 2022
PROPERTY LOCATION (“SUBJECT PROPERTY”)
APN 060-542-014
955 4TH Street
Grover Beach, CA

PLAN OBJECTIVE
This Siting Plan to Address Homelessness (“the Plan”) is a proposal to identify a site within the city for a non-congregate temporary housing facility. One of the initial and foremost challenges to the city related to this Plan is the lack of available undeveloped land that can be used for temporary housing. The Subject Property is one of only a few sites that could accommodate a temporary housing facility of this size. Council’s approval of this Plan will provide binding authority for use of the above referenced site to provide a non-congregate temporary housing development with capacity to accommodate up to 30 unsheltered individuals. No other use will be authorized for this Subject Property. With approval of this plan by the City Council, the City Manager will be granted authority to implement homeless housing solutions related to the Subject Property with only acquisition, leasing and financing approvals returning for future City Council approval.

The Plan is the result of City Council and staff’s implementation of defined City Goals related to housing and homelessness. An important effort of the City Council in establishing goals is to address and develop opportunities wherein it can meet the needs of the homeless while working with other local and regional agencies and organizations (both private and public) as defined in the following city goal:

HOUSING AND HOMELESSNESS. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and nonprofits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and related sheltering issues in the city and region. 2 The Plan is intended to develop a non-congregate temporary housing project through funding from federal, state, and local resources. This Plan will be funded from one-time and ongoing sources that will include but not be limited to funds coming from the American Rescue Plan Act (ARPA) and any other legally available revenues.

CITY USE OF THE PROPERTY
The city for a number of years has been working with other adjacent municipal agencies to meet a regional need for the construction of a water reclamation facility identified as the Central Coast Blue Project. This project is going to be located on an adjacent lot to the Subject Property. There are a multitude of utility easements that will be required for this project that will need to be located across the Subject Property. The city will therefore need control of the subject property for the placement and support of many of the public works needs of this future regional project.

Although this Site Plan is being developed for many compelling reasons including the sheltering of homeless individuals and placement of public utility lines for a major regional water reclamation project, an additional legal purpose for the acquisition of this property by the city deals with the question of meaningful alternatives to sleeping or camping on public property.

The city has been working with a number of local agency and private organizations for the development of temporary housing and emergency shelters for the homeless that addresses the proliferation of camping and sleeping on public property throughout the city. Many of these areas are in environmentally sensitive areas that are not suited or compatible for this type of occupancy. Further, in September 2018, the Ninth Circuit Court of Appeals decided the Martin v.

City of Boise case, and ruled that, except under specific circumstances, enforcement of ordinances that prohibit sleeping or camping on public property by individuals experiencing homelessness is unconstitutional when meaningful alternatives, such as a shelter space or legal places to camp, do not exist. Currently in the City of Grover Beach, there are no non-congregate temporary shelters available. This Plan and the Subject Project will allow for the creation of a non-congregate temporary housing facility, and to further the city’s ability to address the prolific homelessness within its community while creating a compatible solution to the environmental concerns and land use consistency needs throughout the city. 3 IMPLEMENTATION OF THE PLAN
The Subject Property is currently under contract with a local non-profit organization, (501c-3). The terms of the existing escrow and close of escrow was conditioned upon the nonprofit obtaining necessary funding. To establish that funding source, the non-profit organization is willing to assign any right, title, and interest they have in the current escrow to the City subject to the city agreeing to ground lease the property back to the non-profit for the purposes stated herein. The ground lease is a funding mechanism for the non-profit to construct the subject facility.

The City Council will approve the assignment and the acquisition of the Subject Property through the identified funding sources enumerated herein. The city would then enter into an assignment of the escrow, and an acquisition or purchase agreement wherein, upon the close of escrow and transfer of title of the Subject property to the city, the city would enter into a ground lease with the non-profit organization, for the construction, development, operation, and maintenance of the housing facility. The Ground Lease would be for a period of 55 years and would define the requirements of the non-profit related to the construction, development, operation, and maintenance of the housing facility. The requirements of the ground lease would impose an obligation for continued operation of the housing facility for the entire term of the ground lease. Any material breach of the agreement would allow termination of the ground lease and unencumbered title to revert to the city including land improvements. This ground lease would be a vital component of the Plan that would function as a financing agreement for the non-profit and would be necessary for fulfillment of the city goals, the construction of this non-congregate temporary housing facility and enable the city to enhance its abilities to afford housing to individuals that need it the most.

X Joseph A. Wolosz, Trustee
McCarty Davis, Inc.

Steve Davis 01843738
McCarty Davis, Inc., 641 Higuera St, Suite #201 San Luis Obispo CA 93401 8055431801 8055431857 Vacant Parcel - Steve Davis
Attachment 1 Exhibit B
Vacant Parcel -
Joseph A. Wolosz, Trustee
McCarty Davis, Inc., 641 Higuera St, Suite #201 San Luis Obispo CA 93401 8055431801 8055431857 Vacant Parcel - Steve Davis
1 12/17/2021
12/13/2021 955 4th Street (APN: 060-542-014), Grover Beach, CA 5 Cities Homeless Coalition
Joseph A. Wolosz, Trustee
Purchase Price: $420,000
X
5:00 X 12/22/2021
Joseph A. Wolosz, Trustee
McCarty Davis, Inc., 641 Higuera St, Suite #201 San Luis Obispo CA 93401 8055431801 8055431857 Vacant Parcel - Steve Davis
5 Cities Homeless Coalition
Vacant Parcel -
X Seller Multiple Counter Offer
12/17/2021 955 4th Street (APN: 060-542-014), Grover Beach, CA 5 Cities Homeless Coalition
Joseph A. Wolosz, Trustee
X
Joseph A. Wolosz
5 Cities Homeless Coalition
955 4th Street (APN: 060-542-014), Grover Beach, CA
5 Cities Homeless Coalition
McCarty Davis, Inc., 641 Higuera St, Suite #201 San Luis Obispo CA 93401 8055431801 8055431857 Vacant Parcel - Steve Davis
Vacant Parcel -
Seller Multiple Counter Offer 12/17/2021
955 4th Street (APN: 060-542-014), Grover Beach, CA
5 Cities Homeless Coalition
Joseph A. Wolosz, Trustee
X
Joseph A. Wolosz, Trustee
5 Cities Homeless Coalition
McCarty Davis, Inc., 641 Higuera St, Suite #201 San Luis Obispo CA 93401 8055431801 8055431857 Vacant Parcel - Steve Davis
X
5Cities Homeless Coalition
JONES Commercial 01892221
01128892
Kevin Jones
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
5CHC - 955 4th -
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
5Cities Homeless Coalition
Joseph A. Wolosz
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
Joseph A. Wolosz
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
12/13/2021
5Cities Homeless Coalition
X
955 S 4th Street
Grover Beach San Luis Obispo 93433 060542014
Four Hundred Thousand
400,000.00
X 45
X
McCarty Davis, Inc. 01240829
X
Stephen McCarty 00977930
X
JONES Commercial 01892221
X
Kevin Jones 01128892
X
X
10,000.00
X
390,000.00
400,000.00
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 X
Contingent upon funds to be received by 5Cities Homeless Coalition in the form of grants from the municipalities.

X X
Sellers Choice
X Physical Inspection
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 X X 50-50
First American - Stacy Axan
X
First American - Stacy Axan
X
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 X 30
X
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 30 3
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 Kevin Jones
X 400 X
December 17, 2021
X
5Cities Homeless Coalition
Joseph A. Wolosz
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433 December 13, 2021 JONES Commercial 01892221
Kevin Jones 01128892
791 Price Street Pismo Beach CA 93449
(805)473-0300 [email protected]
McCarty Davis, Inc. 01240829
Stephen McCarty 00977930
641 Higuera St, Suite #201 San Luis Obispo CA 93401
(805)543-1801 (805)543-1857 [email protected]
5CHC - 955 4th -
955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
Joseph A. Wolosz
5Cities Homeless Coalition
JONES Commercial 01892221
01128892
Kevin Jones
McCarty Davis, Inc. 01240829
00977930
Stephen McCarty
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
5Cities Homeless Coalition
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
5Cities Homeless Coalition
X X
Ken Dalebout Chairperson
Joseph A. Wolosz
12/13/2021
Joseph A. Wolosz
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
Joseph A. Wolosz
Joseph A. Wolosz
5CHC - 955 4th -
X Commercial Purchase Agreement
December 13, 2021
955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
Joseph A. Wolosz
X
X
X
5Cities Homeless Coalition
Joseph A. Wolosz
McCarty Davis, Inc. 01240829
00977930
Stephen McCarty
JONES Commercial 01892221
01128892
Kevin Jones
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
October 18, 2021
X Commercial Purchase Agreement
955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
Joseph A. Wolosz
X November 30, 2021
X
December 13, 2021 130 X
5Cities Homeless Coalition
Joseph A, Wolosz
X
5Cities Homeless Coalition
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
12/13/2021
955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
Joseph A. Wolosz, Trustee
X
City of Grover Beach
X
X
X
See Text Overflow Addendum (C.A.R. Form TOA) paragraph 1 REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
5Cities Homeless Coalition
X
City of Grover Beach
Joseph A. Wolosz, Trustee
5CHC - 955 4th -
1 955 S 4th Street , Grover Beach, CA 93433
5Cities Homeless Coalition
Joseph A. Wolosz, Trustee
1) AOAA, paragraph 7, Other Terms:

City of Grover Beach to replace deposit of 5Cities Homeless Coalition and intial deposit to be returned. 5Cities Homeless Coalition
Joseph A. Wolosz, Trustee
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
X
December 13, 2021 955 S 4th Street , Grover Beach, CA 93433 5Cities Homeless Coalition
Joseph A. Wolosz, Trustee
March 22, 2022
5Cities Homeless Coalition
Joseph A. Wolosz, Trustee
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
X
12/13/2021 955 S 4th Street , Grover Beach, CA 93433
Joseph A. Wolosz, Trustee, X
City of Grover beach
X X City Municipality
12/13/2021 955 S 4th Street , Grover Beach, CA 93433
REALTY PROFESSIONALS, 791 Price Street Pismo Beach CA 93449 8054730300 5CHC - 955 4th - Kevin Jones
JONES Commercial
JONES Commercial
Kevin Jones
5Cities Homeless Coalition
Joseph A. Wolosz, Trustee,
5Cities Homeless Coalition
Ken Dalebout
Joseph A. Wolosz, Trustee,
5CHC - 955 4th -
Attachment 1 Exhibit C

DRAFT GROUND LEASE
This Ground Lease (“Lease”) is dated as of [Month, Date] 2022 (the “Effective Date”), by and among the CITY OF GROVER BEACH, a municipal corporation (the “Landlord”), and 5Cities Homeless Coalition (the “Tenant”). The Landlord and Tenant may be referred to individually as a “Party” or together as the “Parties.” This LEASE, dated as of the above date, by and between Landlord and Tenant, is made with reference to the following facts:

A. Landlord is the owner of certain real property, situated in the County of San Luis Obispo, State of California, more particularly described on attached Exhibit “A” (the “Premises”), but excepting all buildings, structures and improvements hereafter located on the Premises (the “Improvements”), the ownership of which will be acquired and will be retained by Tenant, subject to the provisions of this Lease. (The Improvements and the Premises are sometimes referred to as the “Property.”) It is the intention of Landlord and Tenant that the separation of title to the Premises and the Improvements is not to change the character of the Improvements as real property and that the same shall be and remain real property; and B. Tenant desires to lease the Premises from Landlord, and Landlord desires to lease the Premises to Tenant upon the terms and conditions set forth below.

NOW, THEREFORE, for and in consideration of the rent, covenants and agreements contained in this Lease, Landlord hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord, and Landlord and Tenant hereby covenant and agree as follows:

CERTAIN DEFINITIONS
For all purposes of this Lease, unless the context otherwise requires, the following words and phrases shall have the following meanings:
(a) “Improvements” shall mean any structures or improvements now or hereafter erected or situated on the Premises, including without limitation, the foundations and footings thereof, title and ownership of which shall be in Tenant, any and all fixtures, equipment and machinery of every kind and nature whatsoever now or hereafter affixed or attached thereto, or now or hereafter used or procured for use in connection with the operation, use or occupancy thereof, and the appurtenances thereto, but excluding from the foregoing all fixtures and articles of personal property, title of which, pursuant to any lease of space in the Improvements shall be vested in the tenant under such lease;
(b) “Premises” shall mean the real property particularly described on Exhibit “A”; (c) “Termination of this Lease” shall mean the expiration of the term of this Lease or any sooner termination of the term of this Lease pursuant to any of the provisions of this Lease; (d) “Leasehold Mortgage” shall mean any mortgage or deed of trust constituting a lien upon this Lease and the leasehold estate hereby created and Tenant's title to the Improvements; (e) “Institution” shall mean a savings bank, a savings or building and loan association, a commercial bank or trust company (whether acting individually or in any fiduciary capacity), an insurance company, an educational institution or a state, municipal or similar public employees' welfare, pension or retirement fund or system, a charitable or other eleemosynary institution, a real estate investment trust or any other person or entity with assets (capital and surplus) in excess of Fifty Million Dollars ($50,000,000), whose principal businesses include interim or permanent financing secured by real estate;
(f) “Institutional Leasehold Mortgage” and “Institutional Leasehold Mortgagee” shall mean respectively, a Leasehold Mortgage held by an Institution and the holder of an Institutional Leasehold Mortgage;
(g) “Fee Mortgage” shall mean any mortgage or deed of trust constituting a lien upon the Premises subject to the encumbrance of this Lease and to any new lease made pursuant to Section 14.04 below and to the rights of Tenant hereunder and thereunder; (h) “Event of Default” shall have the meaning set forth in Article 15; (i) “Unavoidable Delays” shall mean the delays due to strikes, lockouts, acts of God, inability to obtain labor or materials, governmental restrictions, enemy action, civil commotion, fire, unavoidable casualties or similar causes beyond the control of Tenant; (j) “Mortgage” shall include an indenture of mortgage and deed of trust and Institutional Leasehold Mortgagee shall include a bank or trust company acting as trustee under such indenture of mortgage or deed of trust; and
(k) “Initial Improvements” shall mean the first Improvements to be constructed by Tenant on the Premises and shall include a 30 bed non-congregate temporary housing project such as bridge housing or an emergency shelter type building of not less than _____ stories containing not less than (____) net square feet, together with on-site parking facilities for not less than the number of cars required by Landlord consistent with the Grover Beach Municipal Code, and such other reasonable facilities, improvements and appurtenances necessary or desirable in connection with such a development as required by Landlord.

ARTICLE 1
TERM
The term of this Lease shall commence, on the Effective Date of this Lease (the “Effective Date”) and unless sooner terminated under any subsequent provision of this Lease, shall expire and terminate at 12:00 midnight, ______________, 2077, a period of fifty five (55) years.

ARTICLE 2
RENT
Section 2.01. Tenant shall pay to Landlord as basic annual rent, without deduction, set-off, prior notice or demand, the sum of______________ and no/100 Dollars ($) per annum, which sum is subject to possible upward adjustment as provided in Section 2.02 below, in advance in equal monthly installments on the first day of each calendar month, commencing on the Effective Date and continuing during the Lease term. Basic rent for the first month or portion of it shall be paid on the Effective Date. Basic rent for any partial month shall be prorated on the basis of 1/360th of the basic annual rent, per day. All rent shall be paid to Landlord at the address to which notices to Landlord are given, or to such other person or such other place as directed from time to time by written notice to Tenant from Landlord.

Section 2.02. The basic annual rent provided for in Section 2.01 above shall be subject to adjustment at the commencement of the third year of the lease term and every third year thereafter (the “adjustment date”) as follows:
(a) The base for computing the adjustment is the Consumer Price Index for Los AngelesLong Beach-Anaheim, published by the United States Department of Labor, Bureau of Labor Statistics (the “Index”), which is published for the month nearest the Effective Date (the “Beginning Index”). If the Index published nearest the adjustment date (the “Extension Index”) has increased over the Beginning Index, the basic annual rent until the next rent adjustment shall be set by multiplying the basic annual rent set forth in Section 2.02 above by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning Index.

In no case shall the basic annual rent be less than the basic annual rent set forth in Section 2.01 above. Upon adjustment of the basic annual rent as set forth in this Lease, the parties shall immediately execute an amendment to the Lease stating the new basic annual rent. (b) If the Index is changed so that the base year differs from that used as of the month immediately preceding the month in which the Effective Date occurs, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the Lease term, such other government index or computation with which it is replaced shall be used to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised.

Section 2.03. It is the purpose and intent of Landlord and Tenant that the rent payable under this Article 2 shall be absolutely net to Landlord and this Lease shall yield, absolutely net to Landlord, the rent specified and provided in this Article 2, and that Tenant shall pay all costs, charges and expenses of every kind and nature whatsoever against the Property which may arise or become due during the term and which, except for the execution and delivery of this Lease, would or could have been payable by Landlord. However, nothing in this Lease shall require, or be construed to require, Tenant to pay any interest or principal payments or other payments on or required under any mortgage or trust deed on the fee of the Premises should there be any.

ARTICLE 3
PAYMENT OF TAXES, ASSESSMENTS, ETC.

Section 3.01. Tenant covenants and agrees to pay, before any fine, penalty, interest or cost may be added thereto for the non-payment thereof, all property taxes, possessory interest taxes, assessments, water and sewer rates and charges, and other governmental charges, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of any kind and nature whatsoever (all of which taxes, assessments, water and sewer rates or charges, and other governmental charges are hereinafter referred to as “imposition”), which are legally assessed, levied, imposed or become a lien upon the Premises and/or the Improvements and the sidewalks or streets in front of or adjoining the Premises and the Improvements, or become payable, during the term of this Lease; provided, however, that if, by law, any such imposition may at the option of the taxpayer be paid in installments (whether or not interest shall accrue on the unpaid balance of such imposition), Tenant may exercise the option to pay the same (and any accrued interest on the unpaid balance of such imposition) in installments and shall pay only such installments as may become due during the term of this Lease as the same respectively become due and before any fine, penalty, interest or cost may be added thereto, for the non-payment of any such installment and interest; and provided, further, that any imposition relating to a fiscal period of the taxing authority, a part of which period is included within the term of this Lease and a part of which is included in a period of time after the termination of this Lease, other than a termination of this Lease pursuant to Article 15 below, shall (whether or not such imposition shall be assessed, levied, imposed or become a lien upon the Premises and/or the Improvements, or shall become payable, during the term of this Lease) be adjusted between Landlord and Tenant as of the expiration of the term of this Lease, so that Landlord shall pay that portion of such imposition which relates to that part of the fiscal period after the termination of this Lease, if any, and Tenant shall pay that portion of which relates to the period prior to the termination of the Lease, if any.

Section 3.02. NOTIFICATION TO TENANT PURSUANT TO CALIFORNIA REVENUE AND TAXATION CODE SECTION 107.6: A POSSESSORY INTEREST SUBJECT TO PROPERTY

TAXATION MAY BE CREATED BY ENTERING INTO THIS AGREEMENT AND TENANT MAY BE SUBJECT TO THE PAYMENT OF PROPERTY TAX LEVIED ON SUCH INTEREST.

Section 3.03. Tenant covenants, upon request of Landlord, to furnish to Landlord for inspection by it within sixty (60) days after the date when any imposition is payable, official receipts of the appropriate taxing authority, or other evidence satisfactory to Landlord, evidencing the payment of such imposition.

Section 3.04. Tenant shall have the right to contest the amount or validity, or to seek a refund, in whole or in part, of any imposition by appropriate proceedings, and notwithstanding the provisions of Section 3.01 above, this shall not be deemed or construed in any way as relieving, modifying or extending Tenant's covenants to pay any such imposition at the time and in the manner as provided in this Article 3 unless Tenant shall have deposited with Landlord or a bank or trust company designated by Landlord, as security for the payment of such imposition, money or a corporate surety bond or other security acceptable to Landlord in the amount so contested and unpaid together with the estimated amount of all interest and penalties in connection therewith and all charges that may or might be assessed against or become a charge on the Premises and/or Improvements or any part thereof in said proceedings, whereupon Tenant may postpone or defer payment of such imposition. Upon the termination of such proceedings, Tenant shall pay the amount of such imposition or part thereof as finally determined in such proceedings, the payment of which may have been deferred during the prosecution of such proceedings, together with any costs, fees, interest, penalties or other liabilities in connection therewith, and upon such payment Landlord shall return, or cause such bank or trust company to return, the amount above referred to without interest. If, at any time during the continuance of such proceedings, Landlord shall deem the amount deposited with it insufficient, Tenant shall, upon demand, deposit with Landlord or such bank or trust company such additional sum as Landlord may reasonably request, and upon failure of Tenant to do so, the amount theretofore deposited may be applied by Landlord or such bank or trust company to the payment, removal and discharge of such imposition and the interest and penalties in connection therewith any costs, fees or other liability accruing in any such proceedings, and the balance, if any, shall be returned to Tenant. Notwithstanding the foregoing provisions of this Section, if an Institutional Leasehold Mortgagee shall be the tenant under this Lease, such Institutional Leasehold Mortgagee shall not be required to make the deposit required under this Section. Landlord agrees not to unreasonably withhold its consent to joining in any such proceedings or permitting the same to be brought in its name. Landlord shall not ultimately be subjected to any liability for the payment of any costs or expenses in connection with any such proceeding, and Tenant covenants to indemnify, save and hold harmless Landlord from any such costs or expenses. Tenant shall be entitled promptly to any refund of any such imposition and penalties or interest thereon, which have been paid by Tenant, or which have been paid by Landlord and for which Landlord has been fully reimbursed.

Section 3.05. The certificate, advice or bill of the appropriate official designated by law to make or issue the same or to receive payment of any imposition, of non-payment thereof, shall be prima facie evidence that such imposition is due and unpaid at the time of the making or issuance of such certificate, advice or bill.

ARTICLE 4

INSURANCE
Section 4.01. At all times Tenant shall keep the Improvements insured for the mutual benefit of Landlord and Tenant against
(a) loss or damage by fire, and such other risks as may be included in the standard form of extended coverage insurance from time to time available, in an amount not less than one hundred percent (100%) of the then full insurable value of the Improvements; and (b) claims for personal injury or property damage, under a policy of general public liability insurance, with such limits to be not less than One Million Dollars ($1,000,000.00) for any one (1) person and One Million Dollars ($1,000,000.00) for any one (1) occurrence in respect of bodily injury or death, and One Million Dollars ($1,000,000.00) for property damage.

The term “full insurable value” shall mean the actual replacement cost of the Improvements (excluding foundation and excavation costs) and said “full insurable value” shall be determined by an architect, appraiser, appraisal company or one of the insurers, reasonably acceptable to Landlord, selected by Tenant, which determination shall be made no less frequently than once every three (3) years.

Section 4.02. All insurance provided for under this Lease shall be affected under valid enforceable policies issued by insurers of recognized responsibility and licensed to do business in the State of California. The original policies shall be delivered to the holder of the first Leasehold Mortgage and certificates of such insurance shall be delivered to Landlord and to the holder of the Fee Mortgage, if any. If there is no Leasehold Mortgage, the original policies shall be delivered to the holder of the Fee Mortgage, or if there is none, to Landlord. At least ten (10) days prior to the expiration date of any policy, the original renewal policy for such insurance shall be delivered by Tenant to the holder of the expiring original policy, and certificates thereof shall be delivered as aforesaid, together with satisfactory evidence of payment of the premium on such policy. All such policies shall contain a non-cancellation clause except upon thirty (30) days prior written notice to each named insured and loss payee.

Section 4.03. All policies of insurance required under this Lease shall name Landlord and Tenant as the insureds as their respective interests may appear. Subject to the provisions and limitations hereinafter set forth in this Section 4.03 and Sections 4.04 and 4.05 below, all policies of the character referred to in Section 4.01 above shall also provide, if required by either Landlord or Tenant, for any loss thereunder to be payable to the holder of any Fee Mortgage and the holder of any Leasehold Mortgage, as the respective interests of such holders may appear, pursuant to a standard mortgagee clause or endorsement. The loss, if any, under the policies referred to in Section 4.01 above, shall be adjusted with the insurance companies by Tenant, except that in case of any particular casualty resulting in damage or destruction exceeding Five Hundred Thousand Dollars ($500,000.00) in the aggregate, no adjustment shall be made with the insurance companies without the prior approval of Landlord, unless an Institutional Leasehold Mortgagee shall have approved the amount of the adjustment, in which event Landlord's prior approval shall not be required.

Section 4.04. The loss, if any, under all policies of the character referred to in Section 4.01 above shall be payable (a) in the case of any particular casualty resulting in a loss payment not exceeding______________ Dollars ($) to Tenant, or (b) in case of any particular casualty resulting in a loss payment in excess of_______________ Dollars ($) to the Institutional Leasehold Mortgagee holding the first Leasehold Mortgage, or if there is none, to a bank or trust company, as insurance trustee, to be designated by Tenant in a notice given to the insurance companies and to Landlord promptly following the occurrence of the casualty, which bank or trust company shall have its principal office in _____________ , California, and have a capital and surplus account according to its last published statement in excess of Fifty Million Dollars ($50,000,000). All policies of the character referred to in Section 4.01 above shall expressly provide that loss thereunder shall be adjusted and paid as provided in Section 4.03 and this Section 4.04.

Section 4.05. Any loss paid under any insurance policy to Tenant shall be held by Tenant in trust for application to the cost of restoring, repairing, replacing, or rebuilding the Improvements.

Any loss so paid to the Institutional Leasehold Mortgagee, or the insurance trustee shall be disbursed by it in accordance with the provisions of Article 11 below.

ARTICLE 5

LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS ADDITIONAL RENT Tenant covenants and agrees that if it shall at any time fail, within the time limit in Section

15.01(b), below, after any notice of any default has been given thereunder, (except in the case of maintaining the insurance policies provided in Article 4 above for which such time limitation shall not apply for purposes of this Article 5), to pay any imposition in accordance with the provisions of Article 3, or to take out, pay for, maintain or deliver any of the insurance policies provided for in Article 4, or fail to cause any lien of the character referred to in Article 12 to be discharged as provided therein, or shall fail to perform any other act on its part to be performed, then Landlord may (but shall not be obligated to) and without further notice or demand upon Tenant and without waiving or releasing Tenant from any obligations of Tenant contained in this Lease contained, (a) pay any imposition payable by Tenant pursuant to the provisions of Article 3, or (b) take out, pay for and maintain any of its insurance policies provided for in Article 4, or (c) discharge any lien of the character referred to in Article 12 as provided therein, or (d) perform any other act on Tenant's part to be performed as provided in this Lease; provided, however, that so long as a Leasehold Mortgage shall be outstanding, (i) Landlord shall not take any action of the character specified in the foregoing clauses (a), (b), (c), or (d) (except in the case of an emergency) until after the expiration of the time limited in Section 14.04 after the notice specified therein has been given to the Leasehold Mortgagee, and (ii) with respect to any action of the character specified in the foregoing clause (d), Landlord shall not take any such action (except in the case of an emergency) if the holder of the Leasehold Mortgage, prior to the expiration of the time limited in Section 14.04 below, shall have given the notice provided for in clause (d) of Section 14.04. All sums so paid by Landlord and all necessary incidental costs and expenses paid or incurred by Landlord in connection with the performance of any such act by Landlord, together with interest thereon at the rate of ten percent (10%) per annum from the date of making of such expenditure by Landlord, shall be payable to Landlord on demand or, at the option of Landlord, may be added to any basic rent then due or thereafter becoming due under this Lease, and Tenant covenants to pay any such sum or sums payable by Tenant for impositions pursuant to Article 3, insurance premiums pursuant to Article 4 and all other charges and expenses of whatsoever nature which Tenant assumes or agrees to pay pursuant to this Lease, shall be deemed additional rent under this Lease and payable as provided in this Lease, and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of the non-payment of any such sums by Tenant as in the case of default by Tenant in the payment of basic rent.

ARTICLE 6

COVENANTS TO MAINTAIN THE PREMISES AND THE IMPROVEMENTS Tenant, at its sole expense, shall keep the Improvements, the Premises and the adjoining sidewalks and curbs clean and in good condition free of accumulations of dirt and rubbish, and shall make all repairs (including structural repairs) and replacements necessary to maintain the Premises and the Improvements in a condition appropriate for buildings of similar construction, use or class in San Luis Obispo County, California; provided, that in any event Tenant shall make all repairs necessary to avoid any structural damage or injury to the Improvements.

Landlord shall not be required to furnish any services or facilities or to make any repairs or alterations to the Premises or the Improvements and Tenant hereby assumes the full and sole responsibility for the condition, operation, repair, replacement, maintenance and management of the Premises and the Improvements.

ARTICLE 7
COMPLIANCE WITH ORDERS, ORDINANCES, ETC.

Section 7.01. Tenant covenants throughout the term of this Lease, at Tenant's sole cost and expense, promptly to comply with all laws and ordinances and the orders, rules, regulations and requirements of all federal, state and municipal governments and appropriate departments, commissions, boards and officers thereof, and the orders, rules, and regulations of the California Board of Fire Underwriters, or any other body hereafter constituted exercising similar functions, which may be applicable to the Premises and the Improvements. Tenant shall likewise observe and comply with the requirements of all policies of public liability, fire, and all other policies of insurance at any time in force with respect to the Improvements.

Section 7.02. Tenant shall have the right to contest by appropriate legal proceedings, in the name of Tenant or Landlord or both, without costs or expense to Landlord, the validity or application of any law, ordinance, order, rule, regulation or requirement of the nature referred to in Section 7.01 above, and if by the terms of any such law, ordinance, order, rule, regulation or requirement, compliance therewith pending the prosecution of any such proceeding may legally be held in abeyance without the incurrence of a lien, charge or liability of any kind against the Premises or the Improvements or Tenant's leasehold interest therein and without subjecting Tenant or Landlord to any criminal liability of whatsoever nature for failure so to comply therewith, Tenant may postpone compliance therewith until the final determination of any proceedings, provided that all such proceedings shall be prosecuted with all due diligence and dispatch, and if any lien, charge or civil liability is incurred by reason of non-compliance, Tenant may nevertheless make such contest and delay compliance as provided above, provided that Tenant furnishes to Landlord security, reasonably satisfactory to Landlord, against any loss or injury by reason of such non-compliance or delay therein and prosecutes the contest aforesaid with due diligence. Notwithstanding the foregoing provisions of this Section, if an Institutional Leasehold Mortgagee shall be the tenant under this Lease, such Institutional Leasehold Mortgagee shall not be required to furnish the security required under this Section. Landlord agrees to execute and deliver any papers which may be necessary or proper to permit Tenant to contest the validity or application of any such law, ordinance, order, rule, regulation or requirement.

ARTICLE 8

DAMAGE TO OR DESTRUCTION OF THE IMPROVEMENTS
Section 8.01. Tenant covenants that in case of damage to or destruction of the Improvements by fire or any other cause, similar or dissimilar, insured or uninsured, it will promptly, at its sole cost and expense, but subject to reimbursement to the extent provided in Article 11 below, restore, repair, replace or rebuild the Improvements as nearly as possible to the condition, quality and class it was in immediately prior to such damage or destruction, or with such changes or alterations as Tenant shall elect to make in conformity with Article 10 below. Such restoration, repairs, replacement, or rebuilding shall be commenced promptly and prosecuted with reasonable diligence.

Section 8.02. If insurance proceeds, if any, recovered in respect of any insured damage or destruction, less any cost of recovery, shall be insufficient to pay the entire cost of such restoration, repairs, replacement or rebuilding, Tenant covenants to pay the deficiency.

Section 8.03. Tenant's obligation to make payment of the basic rent and all other charges on the part of Tenant to be paid and to perform all other covenants and agreements on the part of Tenant to be performed shall not be affected by any such damage to or destruction of the Improvements and Tenant hereby waives the provisions of Sections 1932(2) and 1933(4) of the California Civil Code and of any other statute or law now or hereafter in effect contrary to such obligations of the Tenant as set forth in this Lease, or which relieves Tenant from such obligation.

ARTICLE 9

CONDEMNATION
Section 9.01. If, at any time during the term of this Lease, there shall be a total taking or a constructive total taking of the fee title to the Premises and Improvements in condemnation proceedings or by any right of eminent domain, this Lease shall terminate on the date of such taking and the basic rent and other charges payable by Tenant under this Lease shall be apportioned and paid to the date of such taking. For the purposes of this Article, the term “a constructive total taking” shall mean a taking of such scope that the untaken portion of the Premises and Improvements is insufficient to permit the restoration of the existing Improvements so as to constitute a complete, economical project. In the event of a dispute between Landlord and Tenant as to whether or not there has been “a constructive total taking” within the meaning above set forth, such dispute shall be determined by arbitration in the manner provided in Article 21 below, except that Tenant may elect, at Tenant's sole option and notwithstanding the foregoing, that the same does not constitute “a constructive total taking”, in which event the provisions of this Article 9 subsequent to Section 9.02 hereof shall apply.

Section 9.02. In the event of any such total taking or constructive total taking and the termination of this Lease, the award, or awards for such taking, less the costs of the determination and collection of the amount of the award or awards (“Condemnation Proceeds”), shall be distributed as follows:
(a) Landlord shall first be entitled to receive and retain as its own property, and Tenant hereby assigns to Landlord, such portion of the Condemnation Proceeds as shall equal the fair market value of the Premises as encumbered by this Lease including any untaken portion of the Premises, exclusive of the Improvements; however, to the extent Condemnation Proceeds on account of such total taking are available therefor, in no event shall Landlord receive less than:
(i) the sum of ------------------Dollars ($) if such total taking or constructive total taking occurs prior to the last day of the tenth (10th) year of the Lease term; (ii) the sum of ___________Dollars ($) if such total taking or constructive total taking occurs on or subsequent to the last day of the tenth (10th) year of the Lease term but prior to the last day of the twentieth (20th) year of the Lease term; (iii) the sum of _______________ Dollars ($) if such total taking or constructive total taking occurs on or subsequent to the last day of the twentieth (20th) year of the Lease term but prior to the last day of the Lease term.
(b) Tenant shall then be entitled to receive, and Landlord hereby assigns to Tenant, the balance of the Condemnation Proceeds, if any.

Section 9.03. In the event of a taking which is less than a total taking or constructive total taking (a “partial taking”), this Lease shall not terminate or be affected in any way, except as provided in Section 9.04, below, and Landlord shall first be entitled to receive and retain as its own property, that portion of the Condemnation Proceeds applicable to the Premises as encumbered by this Lease, equal to the fair market value of the portion of the Premises as encumbered by this Lease so taken exclusive of the Improvements (“Landlord's Proceeds”). Tenant shall then be entitled to receive the balance of the Condemnation proceeds (“Tenant's Proceeds”).

Section 9.04. In the event of a partial taking, Tenant, at its sole cost and expense, but subject to reimbursement as provided in Article 11 below, and whether or not Tenant's Proceeds shall be sufficient for the purpose, shall proceed with due diligence to restore, repair, replace or rebuild the remaining part of the Improvements to substantially its former condition or with such changes or alterations as Tenant may elect to make in conformity with Article 10 below so as to constitute a complete, rentable project.

Section 9.05. In the event of a partial taking, this Lease shall terminate as to the portion of the Premises so taken and the basic rent payable for the balance of the term of this Lease shall be reduced by a sum equivalent to the portion of the Premises taken, such reduction to be effective as of the date of Landlord's receipt of such Condemnation Proceeds. Until the amount of the reduction of the basic rent shall have been determined, Tenant shall continue to pay to Landlord the basic rent provided for in Article 2 above.

Section 9.06. If, at any time during the Lease term, the whole or any part of the Premises, or of Tenant's leasehold estate under this Lease, or of the Improvements shall be taken in condemnation proceedings or by any right of eminent domain for temporary use or occupancy (a “temporary taking”) the foregoing provisions of this Article shall not apply and Tenant shall continue to pay, in the manner at the times specified in this Lease, the full amounts of the basic rent and all additional rent and other charges payable by Tenant under this Lease, and, except only to the extent that Tenant may be prevented from so doing pursuant to the terms of the order of the condemning authority, Tenant shall perform and observe all of the other terms, covenants, conditions and obligations of this Lease upon the part of Tenant to be performed and observed, as though such taking had not occurred. In the event of any such temporary taking, Tenant shall be entitled to receive the entire amount of the Condemnation Proceeds made for such taking, whether paid by way of damages, rent or otherwise unless such period of temporary use or occupancy shall extend beyond the termination of this Lease, in which case the Condemnation Proceeds shall be apportioned between Landlord and Tenant as of the date of termination of this Lease. Tenant covenants that, upon the expiration of any such period of temporary use or occupancy during the Lease term, it will, at its sole cost and expense, restore the Improvements, as nearly as may be reasonably possible, to the condition in which the same was immediately prior to such taking, wear and tear during such temporary use or occupancy excepted. To the extent that Landlord receives any portion of the Condemnation Proceeds as compensation for the cost of restoration or repair of the Improvements, Landlord shall, upon restoration of the Improvements by Tenant as provided above, pay such sum to Tenant. Any portion of the Condemnation Proceeds received by Tenant as compensation for the cost of restoration of the Improvements shall, if such period of temporary use or occupancy shall extend beyond the term of this Lease, be paid to Landlord on the date of termination of this Lease.

Section 9.07. If the order or decree in any condemnation or similar proceeding shall fail separately to state the amount to be awarded to Landlord and the amount to be awarded to Tenant under the provisions of Section 9.02 or 9.03, above, or the amount of the compensation for the restoration of the Improvements under Section 9.05, above, and if Landlord and Tenant cannot agree thereon within sixty (60) days after the final award or awards shall have been fixed and determined, any such dispute shall be determined by arbitration in the manner provided in Article 21 below.

Section 9.08. If Tenant shall assign to any Leasehold Mortgagee any Condemnation Proceeds to which it shall be entitled under the provisions of Section 9.02(b), above, Landlord shall recognize such assignment and shall consent to the payment of the Condemnation Proceeds to such assignee as its interest may appear.

Section 9.09. Tenant and the holder of any Leasehold Mortgage shall have the right to participate in any condemnation proceeding for the purpose of protecting their rights under this Lease, and in this connection, specifically and without limitation to introduce evidence independently of Landlord to establish the value of or damage to the Improvements.

ARTICLE 10
CONSTRUCTION OF INITIAL IMPROVEMENTS;

CHANGES AND ALTERATIONS BY TENANT
Section 10.01. Tenant shall have the right, at any time and from time to time during the Lease term, to construct the Initial Improvements, to make such changes and alterations, structural or otherwise, to the Initial Improvements and/or other Improvements as Tenant shall deem necessary or desirable, including, without limiting the foregoing, the right to increase or reduce the height of any of the Improvements, or to demolish any of the Improvements or any part thereof. Such changes, alterations, demolition, new construction, or construction of the Initial Improvements (collectively referred to as “Changes or Alterations” or “Changes and Alterations”) shall be made in all cases subject to the following conditions which Tenant covenants to observe and perform:
(a) No Change or Alteration shall be undertaken until Tenant shall have procured and paid for, so far as the same may be required, from time to time, all City of Grover Beach and other governmental permits and authorizations of the various municipal departments and governmental subdivisions having jurisdiction;
(b) Any structural Change or Alteration shall be conducted under the supervision of an architect or engineer licensed as such in the State of California (who may be an employee of Tenant) selected by Tenant and plans therefore shall be submitted to Landlord, in order to give Landlord an opportunity to determine that such Changes or Alterations will comply with the provisions of this Article;
(c) All work done in connection with any Change or Alteration shall be done in a good and workmanlike manner and in compliance with all applicable laws, ordinances, orders and requirements of all federal, state and municipal governments and their appropriate departments, commissions, boards and officers. The cost of any such Change or Alteration shall be paid in cash or its equivalent, so that the Premises and the Improvements shall at all times be free of liens for labor and materials supplied or claimed to have been supplied. The work of any Change or Alteration shall be prosecuted with reasonable dispatch, Unavoidable Delays excepted. Worker's compensation insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against Landlord, Tenant or the Premises or the Improvements, and general liability and property damage insurance (which may be effected by indorsement, if obtainable, on the insurance required to be carried pursuant to Section 4.01 above) for the mutual benefit of Tenant and Landlord with limits of not less than those required to be carried pursuant to Section 4.01, above, shall be maintained by Tenant at Tenant's sole cost and expense at all times when any work is in process in connection with any Change or Alteration.

Section 10.02. Tenant covenants that in performing any work or repairs to, or restoration, replacement or rebuilding of, any of the Improvements required to be performed by Tenant pursuant to the provisions of Article 6, Article 7, Article 8, or Article 9, it will observe and perform, insofar as the nature of such repairs, restoration, replacement or rebuilding make such observation and performance appropriate, the conditions relating to Changes and Alterations set forth in Section 10.01, above.

Section 10.03. [Describe any unique requirements regarding reconstruction.] Section 10.04. Tenant covenants and agrees to construct the Initial Improvements, as approved by Landlord in accordance with the provisions of Section 10.01, above, and in accordance with all of the provisions of this Lease, with the demolition of any existing Improvements and construction of the Initial Improvements to be commenced no later than__________ months following the date of this Lease, and to complete the same (as evidenced by a duly executed and recorded notice of completion for all such Improvements) subject to Unavoidable Delays, not later than ___________months following the date of this Lease, or such later date as diligent prosecution and pursuance of such construction, subject to Unavoidable Delays, would permit such completion. In the event demolition of the existing Improvements and construction of the Initial Improvements stops or is terminated for a continuous period of more than ninety (90) days after the commencement of such work, except for Unavoidable Delays, the same shall, at the option of Landlord, constitute an Event of Default as provided in Article 15, below.

ARTICLE 11

DISBURSEMENT OF DEPOSITED MONEYS
Section 11.01. All sums of the character referred to in Section 4.04 or 9.03, above, (collectively referred to as “Deposited Sums”) paid to or deposited with a bank or trust company or paid to the Institutional Leasehold Mortgagee holding the first Leasehold Mortgage (the “Depositary”), shall be disbursed in the manner provided in this Article 11.

Section 11.02. From time to time as any Change or Alteration progresses, or as the restoration, repair, replacement or rebuilding of any Improvement or any portion thereof damaged or destroyed by fire or any other cause, or not taken in a proceeding of the character described in Section 9.03 progresses (collectively referred to as the “Work”), disbursement of any Deposited Sums shall be made upon receipt by the Depositary of the following:
(a) A certificate signed by an architect or engineer licensed as such in the State of California (who may be an employee of Tenant) selected by Tenant who shall be reasonably satisfactory to Landlord and also signed by Tenant, dated not more than thirty (30) days prior to the application for such disbursement, setting forth in substance the following:
(i) That the sum then requested to be disbursed either has been paid by Tenant and/or is justly due to contractors, subcontractors, materialmen, engineers, architects or other persons (whose names and addresses shall be stated) who have rendered and furnished certain labor and materials for the Work and giving a brief description of such services and materials and the principal subdivisions or categories of such Work, and the several amounts so paid or due to each of such persons in respect of such Work, and stating the progress of the Work up to the date of such certificate;
(ii) That the sum then requested to be disbursed, plus all sums previously disbursed, does not exceed the cost of the Work insofar as actually accomplished up to the date of such certificate, and that the balance of the Deposited Sums will be sufficient to pay in full for the completion of the Work, or Landlord shall have received other assurances reasonably satisfactory to it of payment in full for completion of such Work; (iii) That except for the amounts, if any, stated in such certificate pursuant to Subsection 11.02(a)(i), above, to be due for services or materials, there is no outstanding indebtedness known to the person signing the certificate, after due inquiry, which is then due and payable for work, labor, services and materials in connection with the Work, which, if unpaid, might become the basis of a vendor's, mechanic's, laborer's or materialmen's statutory or similar lien upon Tenant's leasehold estate or Tenant's interest in the Improvements or Landlord's interest in the Premises or future interest in the Improvements or any part thereof. (b) A certificate signed by an officer or other duly authorized representative of Tenant dated not more than thirty (30) days prior to the application for such disbursement, setting forth in substance that, to the best knowledge of the signer, after due inquiry:
(i) All materials and all property described in the certificate furnished pursuant to Subsection 11.02(a)(i), above, are free and clear of all mortgages, liens, charges or encumbrances, except (A) encumbrances, if any, securing indebtedness due to persons (whose names and addresses and the several amounts due then shall be stated) specified in such certificate, which encumbrances will be discharged upon payment of such indebtedness, (B) the leasehold estate created by this Lease, (C) any Mortgage on Tenant's interest under this Lease or the Improvements, (D) encumbrances created by Landlord, (E) impositions not due and delinquent, and (F) encumbrances to which this Lease is subject; and (ii) That no Event of Default has occurred which has not been remedied.

Upon compliance with the foregoing provisions of this Section 11.02, the Depositary shall, out of the Deposited Sums, disburse to the persons named in the certificate pursuant to the foregoing Subsection 11.02(a)(i) the respective amounts stated in the certificate to be due to them and/or shall disburse to Tenant the amount stated in the certificate to have been paid by Tenant.

Section 11.03. At any time after the completion in full of the Work, the whole balance of the Deposited Sums not theretofore disbursed pursuant to the provisions of Section 11.02, above, shall be disbursed to Tenant upon receipt by the Depositary of:
(a) a certificate signed by an officer of Tenant, dated not more than thirty (30) days prior to the application for such disbursement, setting forth in substance the following: (i) that the Work has been completed in full; (ii) that all amounts which Tenant is or may be entitled to have disbursed under the foregoing provisions of this Section 11.02 on account of services rendered or materials furnished in connection with the Work have been disbursed under such provisions; (iii) that all amounts for whose payment Tenant is or may become liable in respect of the Work have been paid in full; and (iv) that no Event of Default has occurred which has not been remedied, and
(b) an official search or a certificate of a title company reasonably satisfactory to Landlord showing that there has not been filed with respect to Tenant's leasehold estate or Tenant's interest in the Improvements or Landlord's interest in the Premises or any part thereof, any vendor's, mechanic's, laborer's, or materialmen's statutory or similar lien which has not been discharged of record, or if the same has not been discharged, Tenant has given Landlord security therefor in an amount equal to one and one-half (1-1/2) times the amount of the lien or claim of lien.

Section 11.04. If an Event of Default shall have occurred and be continuing prior to the disbursement of the Deposited Sums or any part thereof, Landlord may notify the Depositary and thereupon the Depositary shall have no further right or obligation to disburse any of the Deposited Sums to Tenant as provided in this Article 11, but shall disburse the same to or for the account of the Leasehold Mortgagee who shall have given the notice as provided in Section

14.04(d) below, or, in the event of the termination of this Lease, who shall have obtained a new lease pursuant to Section 14.04(f) below, or, if any such Leasehold Mortgagee shall not have elected within the period specified in Section 14.04 to obtain a new lease, to Landlord upon Landlord's direction to do so.

Section 11.05. Landlord and Tenant agree that the Depositary shall have the right to deduct from the Deposited Sums prior to any disbursement pursuant to Sections 11.02 or 11.03, above, its reasonable charges for acting as Depositary under this Lease. An executed copy of this Lease shall be deposited by Tenant with the Depositary and shall constitute authority to the Depositary to act as such in accordance with the provisions of this Article 11 without further direction from Landlord or Tenant.

ARTICLE 12

MECHANIC'S LIENS
Tenant shall not suffer or permit any mechanic's, vendor's, laborer's, or materialman's statutory or similar liens (collectively “mechanic's liens”) to be filed against the Premises or the Improvements, nor against Tenant's leasehold interest in the Premises, by reason of work, labor, services or materials supplied or claimed to have been supplied to Tenant or anyone holding any interest in the Premises and/or the Improvements or any part thereof through or under Tenant. If any such mechanic's lien shall be filed, Tenant shall, within thirty (30) days after notice of the filing thereof, cause the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise; provided, however, that Tenant shall have the right to contest, with due diligence, the validity or amount of any such lien or claimed lien, if Tenant shall give to Landlord security in an amount equal to one and one-half (1- 1/2) times the amount of such lien or claimed lien. Subject to the foregoing provisions, if Tenant shall fail to cause such lien to be discharged within such 30-day period, then, in addition to any other right or remedy of Landlord, Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or by bonding proceedings. Nothing in this Lease contained shall be deemed or construed in any way as constituting the consent or request of Landlord, express or implied by inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any specific improvements, alteration to or repair of the Premises or the Improvements or any part thereof, nor as giving Tenant a right, power or authority to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any mechanic's liens against the Premises.

ARTICLE 13
LAWFUL USE; SURRENDER OF IMPROVEMENTS AND THE PREMISES; INSPECTION OF

IMPROVEMENTS AND THE PREMISES
Section 13.01. Tenant shall not use or allow the Improvements or any part thereof, or the Premises, to be used or occupied for any unlawful purpose or for any dangerous or noxious trade or business. This restriction shall not apply during any period of governmental occupancy.

Section 13.02. Upon termination of this Lease, Tenant shall surrender to Landlord the Premises and the Improvements, in good order and repair, reasonable wear and tear excepted and also except as Tenant may have been prevented from maintaining the Improvements in good order and repair by occupation of the Improvements by any sovereign who shall have taken the temporary use of the Improvements and shall then be in possession of the Improvements. Upon such termination, Tenant shall also deliver to Landlord all leases, lease files, plans, records, registers and all other papers and documents which may be necessary or appropriate for the proper operation and management of the Premises and the Improvements.

Section 13.03. Tenant agrees to permit Landlord and the authorized representatives of Landlord and of the holder of any Fee Mortgage to enter the Premises or the Improvements at all reasonable times during usual business hours for the purpose of inspecting the same or exhibiting the same to prospective purchasers of the Premises.

ARTICLE 14

ASSIGNMENT, SUBLETTING AND MORTGAGING
Section 14.01. Prior to the lien-free completion of construction of the Initial Improvements, this Lease and the interest of Tenant under this Lease may not be assigned without the prior written consent of Landlord in each instance. Subsequent to completion of such construction, and without the prior consent of Landlord, this Lease and the interest of Tenant under this Lease may be assigned on one or more occasions to any person, firm or corporation, provided that (a) no such assignment shall be effective for any purpose unless and until (i) the assignor's interest in the Improvements shall be transferred to the assignee of this Lease and (ii) there shall be delivered to Landlord (A) a duplicate original of the instrument or instruments of transfer of this Lease and of the assignor's interest in the Improvements in recordable form, containing the name and address of the transferee and (B) an instrument of assumption by the transferee of all of Tenant's obligations under this Lease; and (b) no such assignment and assumption shall operate or be deemed to operate as a release of the within-named Tenant and/or the duties, obligations and liabilities of Tenant (and/or any guarantor or guarantors of the duties, obligations and liabilities of the within-named Tenant) under this Lease.

Section 14.02. Without the prior consent of Landlord, Tenant shall have the right at any time during the term of this Lease to sublet the Premises or the Improvements or any portion thereof, provided that the term of any such sublease (including any options to extend the same as therein provided) shall not have a term extending beyond the then remaining term of this Lease and the sublease use shall be for an emergency or homeless shelter.

Section 14.03. Reserved.

Section 14.04. Without the prior consent of Landlord, Tenant shall have the right to mortgage this Lease and the leasehold estate hereby created and Tenant's interest in the Improvements; provided, however, that no such mortgage shall be valid for any purpose unless it shall constitute both a lien on the leasehold estate created by this Lease and on Tenant's interest in the Improvements. The execution and delivery of any Leasehold Mortgage shall not be deemed to constitute an assignment or transfer of this Lease nor shall the holder of any Leasehold Mortgage, as such, be deemed an assignee or transferee of this Lease so as to require such holder to assume the performance of any of the terms, covenants or conditions on the part of Tenant to be performed under this Lease. Landlord and Tenant agree that so long as any Leasehold Mortgage is a lien on the Improvements and the leasehold estate created by this Lease as follows:
(a) If Tenant or any Leasehold Mortgagee shall have delivered to Landlord prior written notice of the address of any Leasehold Mortgagee, Landlord will mail to such Leasehold Mortgagee a copy of any notice or other communication from Landlord to Tenant under this Lease at the time of giving such notice or communication to Tenant, and will give to such Leasehold Mortgagee notice of any rejection of the Lease by the trustee in bankruptcy of the Tenant or by Tenant as debtor in possession, and no termination of this lease or termination of Tenant's right of possession of the Premises or reletting of the Premises by Landlord predicated on the giving of any notice shall be effective unless Landlord gives to such Leasehold Mortgagee written notice or a copy of its notice to Tenant of such default or termination, as the case may be.
(b) In the event of any default by Tenant under the provisions of this Lease, any Leasehold Mortgagee will have the same periods as are given Tenant for remedying such default or causing it to be remedied, plus, in each case, an additional period of thirty (30) days after the expiration of the initial period or after Landlord has served a notice or a copy of a notice of such default upon the Leasehold Mortgagee, whichever is later. (c) In the event that Tenant shall default under any of the provisions of this Lease, any Leasehold Mortgagee, without prejudice to its rights against Tenant, shall have the right to cure such default within the applicable grace periods provided for in the preceding Subsection

14.04(b), above, whether the same consists of the failure to pay rent or the failure to perform any other matter or thing which Tenant is hereby required to do or perform, and Landlord shall accept such performance on the part of such Leasehold Mortgagee as though the same had been done or performed by Tenant. For such purpose, Landlord and Tenant hereby authorize such Leasehold Mortgagee to enter upon the Premises and to exercise any of its rights and powers under this Lease and subject to the provisions of this Lease. (d) In the event of any default by Tenant, and if prior to the expiration of the applicable grace period specified in Subsection 14.04(b), above, a Leasehold Mortgagee shall give Landlord written notice that it intends to undertake the curing of such default, or to cause the same to be cured, or to exercise its rights to acquire the leasehold interest of Tenant by foreclosure or otherwise, and shall immediately commence and then proceed with all due diligence to do so, whether by performance on behalf of Tenant of its obligations under this Lease, or by entry on the Premises and/or the Improvements by foreclosure or otherwise, then Landlord will not terminate or take any action to effect a termination of the Lease or re-renter, take possession of or relet the Premises or the Improvements or similarly enforce performance of this Lease in a mode provided by law so long as such Leasehold Mortgagee is with all due diligence and in good faith engaged in the curing of such default, or effecting such foreclosure; provided, however, that the Leasehold Mortgagee shall not be required to continue such possession or continue such foreclosure proceedings if such default shall be cured. (e) In the event that Tenant's interest under this Lease shall be terminated by a sale, assignment or transfer pursuant to the exercise of any remedy of a Leasehold Mortgagee, or pursuant to judicial proceedings, and if (i) no rent or other charges shall then be due and payable by Tenant under this Lease, or (ii) the Leasehold Mortgagee shall have arranged to the reasonable satisfaction of Landlord for the payment of all rent and other charges (less a credit for any income received by Landlord during such period) due and payable by Tenant under this Lease as of the date of such termination, together with the rent and other charges which but for such termination would have become so due and payable from the date of such termination through the sixtieth (60th) day thereafter, and upon payment of all expenses, including attorneys' fees, incident thereto, Landlord will execute and deliver to such Leasehold Mortgagee or its nominee a new lease of the Premises. Such new lease shall be for a term equal to the remainder of the term of this Lease before giving effect to such termination and shall contain the same covenants, agreements, terms, provisions and limitations as this Lease, and shall be subject only to the encumbrances and other matters recited in this Lease and acts done or suffered by Tenant. Upon the execution and delivery of such new lease, the new tenant, in its own name or in the name of Landlord, may take all appropriate steps as shall be necessary to remove Tenant from the Premises and the Improvements, but Landlord shall not be subject to any liability for the payments of fees, including reasonable attorneys' fees, costs or expenses in connection with such removal; and such new tenant shall pay all such fees, including attorneys' fees costs and expenses or, on demand make reimbursements therefor to Landlord. (f) In the event a default under a Leasehold Mortgage shall have occurred, such Leasehold Mortgagee may exercise with respect to the premises and the Improvements any right, power or remedy under the Leasehold Mortgage which is not in conflict with the provisions of this Lease.
(g) This Lease may be assigned, without the consent of Landlord, to or by any Leasehold Mortgagee or its nominee, or pursuant to foreclosure or similar proceedings, or the sale, assignment or other transfer of this Lease in lieu thereof, or the exercise of any other right, power or remedy of the Leasehold Mortgagee, and any Leasehold Mortgagee shall be liable to perform the obligations imposed on Tenant in this Lease only for and during the period it is in possession or ownership of the leasehold estate created by this Lease. (h) There shall be no merger of this Lease or any interest in this Lease nor of the leasehold estate created by this Lease with the fee estate in the Premises, by reason of the fact that this Lease or such interest in this Lease or such leasehold estate may be directly or indirectly held by or for the account of any person who shall hold the fee estate in the Premises, or any interest in such fee estate, nor shall there be such a merger by reason of the fact that all or any part of the leasehold estate created by this Lease may be conveyed or mortgaged in a Leasehold Mortgage to a Leasehold Mortgagee who shall hold the fee estate in the Premises or any interest of the Landlord under this Lease.
(i) No surrender (except a surrender upon the expiration of the term of this Lease or upon termination by Landlord pursuant and subject to the provisions of this Lease) by Tenant to Landlord of this Lease, or of the Premises, or any part thereof, or of any interest therein, and no termination of this Lease by Tenant shall be valid or effective, and neither this Lease nor any of the terms of this Lease may be amended, modified, changed or cancelled and no consents of Tenant under this Lease shall be valid or effective without the prior written consent of any Leasehold Mortgagee who shall have previously given Landlord written notice of the existence of its Leasehold Mortgage.
(j) Landlord consents to a provision in Leasehold Mortgages or otherwise for an assignment of rents from subleases of the Property to the holder of any such Leasehold Mortgage, effective upon any default under such Leasehold Mortgage. (k) If at any time there shall be more than one Leasehold Mortgage constituting a lien on this Lease and the leasehold estate created by this Lease and Tenant's interest in the Improvements, and the holder of the Leasehold Mortgage prior in lien to any other Leasehold Mortgage shall fail or refuse to exercise the rights set forth in this Article 14, each holder of a Leasehold Mortgage in the order of the priority of their respective liens shall have the right to exercise such rights and provided further, however, that with respect to the right of the holder of a Leasehold Mortgage under Section 14.04(e), above, to request a new lease, such right may, notwithstanding the limitation of time set forth in Section 14.04(e), be exercised by the holder of any junior Leasehold Mortgage, in the event the holder of prior Leasehold Mortgage shall not have exercised such right, more than sixty (60) days but not more than seventy-five (75) days after the giving of notice by Landlord of termination of this Lease as provided in said Section.

ARTICLE 15
DEFAULT; BANKRUPTCY
Section 15.01. Tenant agrees that in the event all or substantially all of Tenant's assets are placed in the hands of a receiver or trustee, and such receivership or trusteeship continues for a period of thirty (30) days, or should Tenant make an assignment for the benefit of creditors or be finally adjudicated a bankrupt, or should Tenant institute any proceeding under the Federal Bankruptcy Code as the same now exists or under any amendment thereof which may hereafter be enacted, or under any other act relating to the subject of bankruptcy, or to be discharged of its debts, or to effect a plan of liquidation, composition or reorganization, or should any involuntary proceeding be filed against Tenant under any such bankruptcy laws and such proceeding is not dismissed within ninety (90) days thereafter, then this Lease or any interest of Tenant in and to the Property shall not become an asset in any of such proceedings and, in any such events and in addition to any and all rights or remedies of Landlord under this Lease or as otherwise provided by law, it shall be lawful for Landlord to declare the Lease term ended and to reenter the Property and take possession thereof and remove all persons therefrom, and Tenant shall have no further claim thereon or hereunder. The provisions of this Section 15.01 shall also apply to any guarantor of this Lease.

Section 15.02. (i) Should Tenant at any time be in default with respect to any rental payments or other charges payable by Tenant under this Lease, and should such default continue for a period of ten (10) days after written notice from Landlord to Tenant; or (ii) should Tenant default in the timely payment of rent or other charges payable by Tenant under this Lease so as to necessitate the issuance by Landlord of written notice of default, on two or more occasions within any consecutive six (6) month period (whether or not any such default is subsequently cured by Tenant within ten (10) days after any such notice; or (iii) should Tenant be in default in the prompt and full performance of any other of its promises, covenants or agreements contained in this Lease and should such default or breach of performance continue for more than a reasonable time (not to exceed thirty (30) days except as otherwise expressly provided in Section 15.08, below) after written notice thereof from Landlord to Tenant specifying the particulars of such default or breach of performance; or (iv) should Tenant abandon the premises; then Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this Lease (an “Event of Default”), and in addition to any or all other rights or remedies of Landlord under this Lease or as otherwise permitted by law, it shall be, at the option of Landlord, without further notice or demand of any kind to Tenant or any other person, except as otherwise expressly provided in Article 14, above:
(a) The right of Landlord to declare the Lease term ended and to reenter the Property and take possession thereof and remove all persons therefrom, and Tenant shall have no further claim thereon or thereunder; or
(b) The right of Landlord without declaring this Lease ended to reenter the Property and occupy the whole or any part thereof for and on account of Tenant and to collect the rent and any other charges that may thereafter become payable.
(c) The right of Landlord, even though it may have reentered the Property, to thereafter elect to terminate this Lease and all of the rights of Tenant in or to the Property.

Section 15.03. Should Landlord have reentered the Property under the provisions of Subsection

15.02(b), above, Landlord shall not be deemed to have terminated this Lease, or the liability of Tenant to pay rent thereafter to accrue, or its liability for damages under any of the provisions of this Lease, by any such reenter or by any action in unlawful detainer, or otherwise, to obtain possession of the Property, unless Landlord shall have notified Tenant in writing that it has so elected to terminate this Lease. Tenant further covenants that the service by Landlord of any notice pursuant to the unlawful detainer statutes of the State of California and the surrender of possession pursuant to such notice shall not (unless Landlord elects to the contrary at the time of or at any time subsequent to the serving of such notices and such election is evidenced by a written notice to Tenant) be deemed to be a termination of this Lease. In the event of any entry or taking possession of the Property as provided above, Landlord shall have the right, but not the obligation, to remove from the Property all or any part of the personal property located therein and may place the same in storage at a public warehouse at the expense and risk of the owner or owners thereof.

Section 15.04. Should Landlord elect to terminate this Lease under the provisions of Subsections 15.02(a) or (c), above, Landlord may recover from Tenant as damages:
(a) the worth at the time of award of any unpaid rent which had been earned at the time of such termination; plus
(b) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus
(d) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, any costs or expenses incurred by Landlord in maintaining or preserving the Property after such default, preparing the Improvements for reletting to a new tenant, any repairs or alterations to the Improvements for such reletting, leasing commissions, or any other costs necessary or appropriate to relet the Property;
(e) at Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by the laws of the State of California.

Section 15.05. As used in Subsections 15.04(a) and (b) above, the “worth at the time of award” is computed by allowing interest at the rate of ten percent (10%) per annum. As used in Subsection 15.04(c), above, the “worth at the time of award” is computed by discounting such amount at the discount rate of the San Francisco Federal Reserve Bank, at the time of award, plus one percent (1%).

Section 15.06. For all purposes of this Lease, “rent” shall be deemed to be the basic annual rent and all other sums required to be paid by Tenant pursuant to the terms of this Lease.

Section 15.07. In the event of default, all of Tenant's fixtures, furniture, equipment, improvements, additions, alterations, and other personal property shall remain on the Premises and in that event, and continuing during the length of such default, Landlord shall have the right to take the exclusive possession of same and to use same, rent or charge free, until all defaults are cured or, at its option, at any time during the Lease term, to require Tenant to forthwith remove same.

Section 15.08. Notwithstanding any other provisions of this Article 15, Landlord agrees that if the default complained of, other than for the payment of monies, is of such a nature that the same cannot be rectified or cured within the thirty (30) day period requiring such rectification or curing as specified in the written notice relating thereto, then such default shall be deemed to be rectified or cured if Tenant within such period of thirty (30) days shall have commenced the rectification and curing thereof and shall continue thereafter with all due diligence to cause such rectification and curing and does so diligently complete the same.

Section 15.09. Upon the expiration of the term of this Lease pursuant to any of the provisions of this Article, it shall be lawful for Landlord, without formal demand or notice of any kind, to reenter the Premises and the Improvements by summary dispossess proceedings or any other action or proceeding authorized by law, or by force or otherwise and to remove Tenant therefrom without being liable for any damages therefor.

Section 15.10. Landlord shall not be deemed to be in default in the performance of any obligation required to be performed by it under this Lease until it has failed to perform such obligation within thirty (30) days after written notice by Tenant to Landlord specifying the nature of Landlord's default; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for its performance, then Landlord shall not be deemed to be in default if it shall commence such performance within such thirty (30) day period and thereafter diligently prosecute the same to completion.

ARTICLE 16

INDEMNIFICATION OF LANDLORD
Tenant agrees to indemnify and save harmless Landlord against and from any and all claims by or on behalf of any person arising from the conduct or management of or from any work or thing whatsoever done in and on the Premises and/or Improvements and will further indemnify and save Landlord harmless against and from any and all claims arising during the term of this Lease from any condition of the Improvements or any street, curb, or sidewalk adjoining the Premises and/or Improvements, or passageways or space therein or appurtenant thereto, or arising from any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of Tenant to be performed pursuant to this Lease, or arising from any act or negligence of Tenant or any subtenant or occupant of the Improvements or any part thereof, or of its or their agents, contractors, servants, employees or licensees, or arising from any accident, injury or damage whatsoever caused to any person or property occurring during the term of this Lease in or about the Premises and/or Improvements, or upon or under the sidewalks and the land adjacent thereto, and from and against all judgments, costs, expenses and liabilities incurred in or about any such claim or action or proceeding brought therein; and in case any action or proceeding is brought against Landlord by reason of any such claims, Tenant upon notice from Landlord covenants to resist or defend such action or proceeding by counsel reasonably satisfactory to Landlord.

ARTICLE 17

LIMITATION OF LANDLORD'S LIABILITY
The term “Landlord” as used in this Lease so far as covenants or obligations on the part of Landlord are concerned shall be limited to mean and include only the owner or owners at the time in question of the fee of the Premises and in the event of any transfer or transfers of the title to such fee Landlord herein named (and in case of any subsequent transfers or conveyances the then grantor) shall be automatically freed and relieved from and after the date of such transfer or conveyance from all obligations on the part of Landlord contained in this Lease to be performed thereafter, provided that any prepaid rent or trust funds in the hands of such Landlord or the then grantor at the time of such transfer, shall be transferred to the grantee or transferee, who shall expressly assume, subject to the limitations of this Article, all of the terms, covenants and conditions in this Lease contained on the part of Landlord thereafter to be performed, it being intended by this Article that the covenants and obligations contained in this Lease on the part of Landlord shall, subject to the provisions of this Article 17, be binding on Landlord, its successors and assigns, only during and in respect of their respective successive periods of ownership.

ARTICLE 18

INVALIDITY OF PARTICULAR PROVISIONS
If any term or provision of this Lease or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

ARTICLE 19

CERTIFICATES OF LANDLORD AND TENANT
Section 19.01. Tenant agrees at any time and from time to time upon not less than twenty (20) days prior notice by Landlord to execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications that the Lease is in full force and effect as modified and stating the modifications), and the dates to which the basic rent has been paid, and stating whether or not to the best knowledge of the signer of such statement Tenant is then in default or may be in default with notice or the passage of time, or both, in keeping, observing or performing any term, covenant, agreement, provision, condition or limitation contained in this Lease, and, if in default, specifying each such default, it being intended that any such statement delivered pursuant to this Section may be relied upon by Landlord or any prospective purchaser of the fee or any Fee Mortgage thereof or any assignee of any Fee Mortgage but reliance on such statement may not extend to any default as to which the signer shall have had no actual knowledge.

Section 19.02. Landlord agrees at any time and from time to time upon not less than twenty (20) days prior notice by Tenant or any Leasehold Mortgagee to execute, acknowledge and deliver to Tenant a statement in writing certifying that this lease is unmodified and in full force and effect (or if there shall have been modifications that the Lease is in full force and effect as modified and stating the modifications) and the dates to which the basic rent has been paid, and stating whether or not to the best knowledge of the signer of such statement Tenant is then in default or may be with notice or the passage of time, or both, in keeping, observing or performing any term, covenant, agreement, provision, condition or limitation contained in this Lease and, if Tenant shall be in default, specifying each such default of which the signer may have knowledge, it being intended that such statement delivered pursuant to this Section may be relied upon by any prospective transferee of Tenant's interest in this Lease and the Improvements or any Leasehold Mortgagee or any assignee of any Leasehold Mortgage, but reliance on such certificate may not extend to any default as to which the signer shall have had no actual knowledge.

ARTICLE 20

NOTICES
All written notices or demands of any kind which either party may be required or may desire to serve on the other in connection with this Lease must be served (as an alternative to personal service) by registered or certified mail, shall be deposited in the United States mail with postage thereon fully prepaid and addressed to the party to be served as follows:

If the party so to be served is Landlord, address Landlord at:
with a copy thereof
to
If the party so to be served is Tenant, address Tenant at:
with a copy thereof
to
Service of any such notice or demand so made by mail shall be deemed completed on the day of actual delivery as shown by the addressee's registry or certification receipt or at the expiration of the second day after the date of mailing, whichever is earlier in time. If requested in writing by the holder of any Leasehold Mortgage (which request shall be made in the manner provided above as between the parties hereto and shall specify an address to which notices or demands shall be given or made) any such notice or demand shall also be given or made in the manner specified in this Article and contemporaneously to such holder. Either party, and the holder of any Leasehold Mortgage who shall have made the request referred to above, may designate by notice in writing given in the manner specified above a new or other address to which such notice or demand shall thereafter be so given or made. No Event of Default predicated on the giving of any notice to Tenant shall be complete unless like notice shall have been given contemporaneously therewith to each holder of a Leasehold Mortgage who shall have made a request for notices and demands as provided above.

ARTICLE 21

ARBITRATION
Section 21.01. If at any time, or from time to time during the Lease term, any dispute shall occur between Landlord and Tenant or any assignee of Tenant pursuant to any provision of this Lease with respect to a matter which this Lease provides shall be settled by arbitration, such dispute shall be settled by arbitration in accordance with the Rules then obtaining of the American Arbitration Association and the law of the State of California, and judgment upon the award rendered in such arbitration may be entered in any court having jurisdiction thereof; provided, however, that in any arbitration proceeding conducted pursuant to this Section, at least one arbitrator shall be an attorney at law, admitted to practice in the State of California.

Section 21.02. In the event Tenant shall fail to proceed diligently with any matter which is the subject of arbitration under this Lease, Landlord agrees that the holder of any Leasehold Mortgage shall have the right in the place and stead of Tenant to arbitrate such dispute as provided in this Article and any award made in such arbitration proceeding shall be binding upon Tenant with the same force and effect as if Tenant had proceeded with such arbitration. The arbitrator or arbitrators may not change any of the terms of this Lease or deprive any party to this Lease of any right of remedy expressly or impliedly reserved under this Lease.

ARTICLE 22
CUMULATIVE REMEDIES—NO WAIVER—NO ORAL CHANGE
Section 22.01. The specified remedies to which Landlord may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which Landlord may be lawfully entitled in case of any breach or threatened breach by Tenant of any provision of this Lease. The failure of Landlord to insist in any one or more cases upon the strict performance of any of the covenants of this Lease or to exercise any option contained in this Lease shall not be construed as a waiver or a relinquishment for the future of such covenant or option. A receipt by Landlord of rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressly in writing and signed by Landlord. In addition to the other remedies provided in this Lease, Landlord shall be entitled to the restraint by injunction of the violation, or attempted or threatened violation, of any of the covenants, conditions or provisions of this Lease.

Section 22.02. This Lease cannot be changed orally, but only by an agreement in writing signed and acknowledged by Landlord and Tenant.

ARTICLE 23

QUIET ENJOYMENT
Landlord covenants and agrees that Tenant, upon paying the rent provided for in this Lease and upon observing and keeping all of the covenants, agreements and provisions of this Lease on its part to be observed and kept, shall lawfully and quietly hold, occupy and enjoy the Premises during the term of this Lease, without hindrance by or from anyone claiming by, through or under Landlord.

ARTICLE 24

REAL ESTATE BROKERS
Tenant hereby represents and warrants that it has dealt with no real estate broker, agent or party who may be entitled to a commission or fee on account of this Lease. Tenant hereby indemnifies and agrees to hold Landlord harmless from and against any loss, cost, liability and expense, including reasonable attorneys' fees, which may be incurred in the event the foregoing representation and warranty proves incorrect.

ARTICLE 25

REPRESENTATIONS
Landlord hereby disclaims any warranty, guaranty or representation of the nature and condition of the Premises, including (but not by way of limitation) the soil and geology and suitability thereof for any and all activities and uses which Tenant may elect to conduct thereon at any time during the Lease term, the manner of construction and the conditions and state of repair or lack of repair of all improvements located thereon, and the nature and extent of the rights of others with respect to the Premises, whether by way of easement, right of way, lease, possession, lien, encumbrance, license, reservation, condition or otherwise.

ARTICLE 26

MISCELLANEOUS
Section 26.01. All rent and other sums which may from time to time become due and payable by Tenant to Landlord under any of the provisions of this Lease shall bear interest from and after the due date thereof at the rate of ten percent (10%) per annum.

Section 26.02. In all cases the language in all parts of this Lease shall be construed simply, according to its fair meaning and not strictly for or against Landlord or Tenant.

Section 26.03. The word titles underlying the article designations contained in this Lease are inserted solely for convenience and under no circumstances are they or any of them to be treated or construed as any part of this instrument.

Section 26.04. Subject to the other provisions of this Lease, this Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their respective successors and assigns, and wherever a reference in this Lease is made to either Landlord or Tenant, such reference shall be deemed to include, wherever applicable, also a reference to the successors and assigns of such party, as if in every case so expressed.

Section 26.05. At the request of either Landlord or Tenant, a Memorandum of Lease (in the form attached hereto as Exhibit “B”) shall be executed by Landlord and Tenant and recorded in the Office of the County Recorder of County, California. In no event shall this Lease be recorded.

Section 26.06. This Lease shall be governed by and construed in accordance with the laws of the State of California.

Section 26.07. This Lease, together with any written modifications or amendments hereafter entered into shall constitute the entire agreement between the parties relative to the subject matter of this Lease, and shall supersede any prior agreement or understanding, if any, whether written or oral, which Tenant may have had with Landlord relating to the subject matter of this Lease.

Section 26.08. This instrument may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

Section 26.09. In the event of any litigation or arbitration between Landlord and Tenant with respect to the subject matter of this Lease, the unsuccessful party to such litigation or arbitration shall pay to the prevailing party all costs and expenses, including reasonably attorneys' fees, incurred therein by the successful party, all of which shall be included in and as a part of the judgment rendered in such litigation or arbitration.

ARTICLE 27
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above written.

LANDLORD: TENANT:

By: By:

Title: Title:

By: By:

Title: Title:

Exhibit “A”
[DESCRIPTION OF PREMISES]
EXHIBIT “B”

MEMORANDUM OF GROUND LEASE

RECORDING REQUESTED BY AND WHEN RECORDED, MAIL TO

MEMORANDUM OF GROUND LEASE
THIS MEMORANDUM OF GROUND LEASE (this “Memorandum”) is made and entered into this day of , , by and between , whose present address is , California (“Landlord”) and , whose present address is , California (“Tenant”), with reference to the following facts:

A. Landlord is the owner of that certain real property located in the City of , County of , State of California, commonly known as and more particularly described in Exhibit “A” attached hereto (the “Property”).

B. Landlord desires to lease the Property to Tenant, and Tenant desires to lease the Property from Landlord, all subject to the terms and provisions of this Memorandum.

NOW, THEREFORE, the parties hereto hereby agree as follows:

Lease of the Property. Landlord hereby leases the Property to Tenant, and Tenant hereby leases the Property from Landlord for a term of () years commencing on and terminating on , , all subject to and on terms and conditions more fully set forth in that certain Ground Lease executed by and between Landlord and Tenant and dated , (the “Lease”). The said Ground Lease is incorporated herein by this reference. Should any party require any information concerning the said Ground Lease, they should contact the Landlord and Tenant at the abovereferenced addresses.

IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the day and year first above written.

TENANT LANDLORD
[Add Notary Acknowledgement] [Add Notary Acknowledgement] Site Location
955 South 4th
Street
Legal Description
Lot 21 and 22 of Block 3, of
re-subdivision No.3 of part of
Lot 1 of Pismo Beach
Gardens (3 RM 77).

Land Use Data
LUD: Industrial
Zoning: Coastal Industrial (CI)
APN: 060-542-014
Lot Size: 20,625 s.f.

Attachment 2
Budget JE #

AGENDA DATE
3/14/2022
AMOUNT
$425,000
$425,000
$425,000
$425,000
JUSTIFICATION: (attach letter if required) - CM requestREQUESTED BY:

Date Date
APPROVED by the City Council of the City of Grover Beach, State of California, this day of 20____. Agenda Item No.

ATTEST:

APPROVED BY:

Date City Manager
Department Head Administrative Services
City Clerk

TOTAL EXPENDITURES
Move appropriation for ARPA funding from Economic Development to Capital Purchase REVIEWED & APPROVED BY:

TOTAL REVENUES

EXPENDITURE USES
Capital Purchase 01-000-57000-000 ARPA

REVENUE SOURCES
Economic Development 01-000-54120-000 ARPA
DESCRIPTION # #
Approvals/workflow 1.

Dept Head 2.

Admin Svcs

3. City Council

4. City Manager
City of Grover Beach

BUDGET ADJUSTMENT REQUEST
4th Street Property Acquisition of $425,000 using ARPA
Account PROJECT/GRANT
Attachment 3