AgendaPackage_6-27-2022 — Grover Beach City Council, June 27, 2022

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, JUNE 27, 2022, 6:00 PM
Next Resolution No .22-26
Next Ordinance No. 22-08
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

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

1. Proclamation for National Parks and Recreation Month

2. Certificates of Appreciation - Spring Garden Tour Participants 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.

Agenda: Grover Beach City Council Meeting Page 2
Monday, June 27, 2022

PRESENTATIONS
NONE

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

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 Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.

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

VOICE VOTE

4. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period May 1, through May 31, 2022.
(Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE

5. Minutes of the City Council Meeting on Monday, June 13, 2022. (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

6. Adoption of Revised FY 2022-23 Budget – City Manager Bronson and Administrative Services Director Purcell
(Recommended Action: Adopt Resolutions to adopt and appropriate funds for the Revised FY 2022-23 budget, set the FY 2022-23 Appropriations Limit from Tax Proceeds, and establish authorized positions in departments for FY 2022-23.)

ROLL CALL VOTE

7. Approval of the City of Grover Beach Lease Policy – Administrative Services Director Purcell
(Recommended Action: Review and Approve the City of Grover Beach Lease Policy.)

ROLL CALL VOTE

8. Approval of Second Amended and Restated Joint Powers Agreement for the San Luis Obispo County Integrated Waste Management Authority– City Manager Bronson (Recommended Action: Adopt a Resolution approving the Second Amended and Restated Joint Powers Agreement for the San Luis Obispo County Integrated Waste Management Authority and authorize the Mayor to execute the agreement on behalf of the City.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, June 27, 2022

9. Quitclaim of Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, to the California Department of Transportation – Public Works Director/City Engineer Ray and Senior Engineer Munoz-Morris
(Recommended Action: Approve a quitclaim deed of Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, and authorize the Mayor to execute the quitclaim deed on behalf of the City.)

ROLL CALL VOTE

10. Award of Construction Contract for Measure K-14 Street Improvements (CIP 2295- 14 and 2274 - Nacimiento Avenue, Owens Court, Mono Court, Angello Terrace, Ocean View Avenue, South 7th Street and Trouville Avenue) and Sidewalk Infill Project – Public Works Director/City Engineer Ray and CIP Manager Wiggin (Recommended Action: Award the contract for construction of CIP 2295-14 and CIP 2274 as part of the Measure K-14 Street Rehabilitation Program to Granite Construction Company in the amount of $2,327,327 for the Base Bid; authorize the City Manager to sign and affirm construction and construction management change orders up to an aggregate of $230,000; and authorize the Mayor to execute the contract on behalf of the City.)

ROLL CALL VOTE

11. West Grand Avenue Streetscape 4th-8th Street (CIP 2287): Award of Professional Design Engineering Services – Public Works Director/City Engineer Ray and CIP Manager Wiggin
(Recommended Action: Approve a Consulting Services Agreement with BKF Engineers for design phase services, bidding phase services, and post-design services during construction associated with the West Grand Avenue Streetscape Design Project (CIP 2287); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $40,000.)

ROLL CALL VOTE

PUBLIC HEARING

12. Second Reading and Adoption of an Ordinance Amending Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code to Add Insurance Benefits – Deputy City Manager Eriksson (Recommended Action: Conduct a public hearing for the second reading and adoption of an Ordinance to amend Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council health benefits.)

ROLL CALL VOTE

REGULAR BUSINESS

13. Approval of Ground Lease with 5Cities Homeless Coalition for Homeless Housing Facility Use at City-Owned Property at 955 South 4th Street – City Manager Bronson, Community Development Director Buckingham, Public Works Director/City Engineer Ray and City Attorney Hale
(Recommended Action: Approve a ground lease agreement with 5Cities Homeless Coalition (5CHC) at 955 South 4th Street (APN No. 060-542-014) to develop and operate a homeless housing facility use and authorize the City Manager to finalize and execute the agreement in substantial conformance to the terms in the approved agreement.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 4
Monday, June 27, 2022

14. Resolution Establishing a Citywide Governance Policy – Deputy City Manager Eriksson
(Recommended Action: Adopt the Resolution establishing a Citywide Governance Policy prior to the implementation of City Council district elections in November 2022.)

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) 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 (Alt: 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 (Alt: Karen Bright)

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
Agenda: Grover Beach City Council Meeting Page 5
Monday, June 27, 2022

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

A. Conference with Real Property Negotiators
Property: APN 060-54-011
Agency Negotiators: Matthew Bronson, City Manager; Greg Ray, Public Works Director/City Engineer, ; David Hale, City Attorney
Negotiating Parties: Mr. Piero Curzi, Property Owner
Under Negotiation: Instruction to negotiators shall include price, terms and conditions related to terms of payment, project specific information related to project affecting price.

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.

PROCLAMATION OF THE GROVER BEACH CITY COUNCIL

OF THE CITY OF GROVER BEACH DESIGNATING JULY AS
“NATIONAL PARK AND RECREATION MONTH”
WHEREAS, parks and recreation programs are an integral part of communities throughout this county, including Grover Beach, and
WHEREAS, our parks and recreation are vitally important to establishing and maintaining the quality of life in our communities, ensuring the health of all citizens, and contributing to the economic and environmental well-being of a community and region; and WHEREAS, parks and recreation programs build healthy, active communities that aid in the prevention of chronic disease, provide therapeutic recreation services for those who are mentally or physically disabled, and improve the mental and emotional health of all citizens; and WHEREAS, parks and recreation programs increase a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS, parks and recreation areas are fundamental to the environmental well-being of our community; and
WHEREAS, our parks and natural recreation areas improve water quality, protect groundwater, prevent flooding, improve the quality of the air we breathe, provide vegetative buffers to development, and produce habitat for wildlife; and WHEREAS, the U.S. House of Representatives has designated July as Parks and Recreation Month; and
WHEREAS, the City of Grover Beach recognizes the benefits derived from parks and recreation resources.

NOW, THEREFORE, BE IT RESOLVED that the Grover Beach City Council herby officially recognizes the month of July as “National Park and Recreation Month” in the City of Grover Beach.

IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 27th day of June, 2022.

Jeff Lee, Mayor
Attest:

Wendi Sims, City Clerk
Agenda Item No. 1
Grover Beach City Council &
Parks, Recreation and Beautification Commission
Presented to
John and Valerie McGill
In honor of you hosting your garden at 351 North 9th Street as part of the Spring Garden Tour on June 4, 2022.

In witness thereof, I hereunto set my hand and cause the seal of the City of Grover Beach to be affixed this Monday of June 27, 2022. ________________________________
Jeff Lee, Mayor
Attest: ________________________________
Wendi B. Sims, City Clerk
Agenda Item No. 2
Grover Beach City Council &
Parks, Recreation and Beautification Commission
Presented to
Jeanne McManners
In honor of you hosting your garden at 186 N. 12th Street as part of the Spring Garden Tour on June 4, 2022.

Grover Beach City Council &
Parks, Recreation and Beautification Commission
Presented to
Dorothy Shanahan
In honor of you hosting your garden at 1770 Baden Street as part of the Spring Garden Tour on June 4, 2022.

Grover Beach City Council &
Parks, Recreation and Beautification Commission
Presented to
Mary Ann Stafford
In honor of you hosting your garden at 603 South 6th Street as part of the Spring Garden Tour on June 4, 2022.

Grover Beach City Council &
Parks, Recreation and Beautification Commission
Presented to
Darrell and Linda Voth
In honor of you hosting your garden at 920 Brighton Avenue as part of the Spring Garden Tour on June 4, 2022.

CITY OF GROVER BEACH
Treasurer's Report for June 27, 2022 City Council Meeting I May 1, 2022 to May 31, 2022
I

RESOURCES DESCRIPTION
Balance from April 30, 2022
Deposits
Voided Checks
From Street Bond Acct
Total Resources

EXPENSES

DESCRIPTION
WR
PR Direct Deposit
Manual PR
WR
WR
WR
PR Direct Deposit
WR
Electronic Transfers
Check Number
70426
70526
PERIOD ENDING i CK DATE CHECK NUMBER
' 05/05/22 70410-70465
05/01 /22 05/06/22 5359156-5359224
05/15/22 05/06/22 5367 40
05/06/22 70466-67
05/12/22 70468-70424
05/19/22 70525-70572
05/15/22 05/20/22 5359225-5359288
05127122 70573-70629
J1!1!
5/5/2022
5/19/2022
Returned Checks, Stop Pmts, Chargeback Cre~it Card and ACH Returned to the City ! Credit Card Payments Service Charge
Deposit Correction
Bank Fees
Transferred to L.A.l.F.

Total Expenditures
Cash Balance as of May 31, 2022
Local Agency Investment Fund (L.A.l.F.) Bala~ce: May 31, 2022 Annette
Finance Manager
$
$
$
$
$
978,086.25
2,915,756.36
463.85
740.00
741,013.14
4,636,059.60
AMOUNT
710,035.97
150,754.66
3,358.81
463.85
123,631.09
215,904.56
145,291.28
339,093.78
382,321.91
6,365.37
3,167.63
151.49
546.64
700,000.00
2,781 ,087.04
1,854,972.56
16,890,671.62

ACCOUNTS PAYABLE
CHECK DATE 05/05/2022
Check Name Check Amount Check Date Invoice Desc
OST Security Deposits 1/1/2022 to 3/31/2022 17-CDBG
70410 SCities Homeless Coalition 63,018.50 05/05/2022 12027 CDBG-2017 Heterotrophic Plate Count, Coliform P/A, Quanti Tray DW, 70411 ABALONE COAST ANALYTICAL INC 2,896.00 05/05/2022 General Physical, ELAP Fee, ELAP Fee General Admin - Warming Center. Service period October
70412 ADAMS ASHBY GROUP LLC 33,750.00 05/05/2022 2021Project20-CDBG-CVl 70413 ALEMAN-ODGERS, AIDA 104.00 05/05/2022 2542 refund rental because of broken BBQ pit 70414 Banana LLC 17,325.22 05/05/2022 Refund for over payment of City taxes California Joint Powers Insurance
70415 Authority 25,000.00 05/05/2022 2021-22 WC Tail Claims Funding Requirements

CALIFORNIA POLICE CHIEFS
70416 ASSOCIATION 440.00 05/05/2022 Membership Renewal - Chief Peters through June 30, 2023 70417 CATALYST SALON, LLC 249.00 05/05/2022 UB Refund on Tenant Deposit Acct# 21188 70418 Central Coast Party Factory, LLC 330.00 05/05/2022 Bounce house for picnic in the park 70419 CITY OF GROVER BEACH WATER DEPT. 10,566.95 05/05/2022 City Water Accounts CLIFFORD H. CLARK ATIORNEY AT
70420 LAW 705.00 05/05/2022 Rent @ 255 N 10th St - May 2022 70421 COASTLAND COAST LANDSCAPE 5,100.00 05/05/2022 May Grounds Maintenance 70422 COLLINGS & ASSOCIATES, LLC 190.00 05/05/2022 Collings review of 923 Huber St.

CONFLUENCE ENGINEERING Chief Water Operator Services 3/1/22-3/31/22. February 70423 SOLUTIONS, INC 950.00 05/05/2022 2022 DDW Reports Lease for Canon/Image Formula DR-G2110 for 4/15/22
70424 DE LAGE LANDEN 108.74 05/05/2022 through 5/14/22
70425 DJ'S PLUMBING INC 241.00 05/05/2022 Ramona Park - replace cartridge @ men's lavatory faucet 70426 FRANCHISE TAX BOARD 463.85 05/05/2022 State Franchise Tax Board Garnishment for employee 70427 GARING TAYLOR & ASSOCIATES INC. 513.00 05/05/2022 Coord on Gentlemen's Agreement-City Wide GROVER BEACH POLICE OFFICERS Grover Beach Police Officers Association Dues payment 70428 ASSOC. 1,100.00 05/05/2022 check date 5-6-22
NCMA 2021 Annual Report. Professional services from
70429 GSI Water Solutions, Inc 6,033.52 05/05/2022 March 1, 2022 through March 31, 2022 70430 Hacienda Gardening 975.00 05/05/2022 Gopher treatment for April 2022 Hale, David P - Law Offices of David P.
70431 Hale 14,300.50 05/05/2022 April 2022 Attorney Fees 70432 J.B. DEWAR INC. 5,845.11 05/05/2022 PD Gas Statement 4-15-22 through 4-30-22 70433 JAY SWIFT 500.00 05/05/2022 Medical reimbursement per retiree contract - May 2022 70434 JJ Fisher Construction, Inc 287,721.86 05/05/2022 Measure K-14 Rehab & Repair Project CIP 2295-10 70435 KJB Screen Printing & Embroidery 145.41 05/05/2022 New Code Compliance Shirts - Adam LEWIS BRISBOIS BISGAARD & SMITH Water Issues File #36066-2. Current fees and disbursements 70436 LLP LAWYERS 416.04 05/05/2022 through 3/31/2022
70437 Med-Stops Medical Clinic, Inc 883.00 05/05/2022 MedStop km Inv 22598 ADeHart - GJohnson_ 4-21-2022 Cleaver Park Water & Sewer Analysis. Billing through Mar 70438 Michael K. Nunley & Associates, Inc. 873.96 05/05/2022 29,2022 70439 MISSION LINEN SUPPLY SAP #110035 197.95 05/05/2022 Mat and mop service for GBCC Per diem for Cmdr. Munro while attending AXON
70440 MUNRO, JIM 275.00 05/05/2022 Conference in Phoenix, AZ. - 5-23-22 PW City of GB CIP 4004 2021 Water Main Project CM.
70441 Omni-Means C/O GHD, Inc. 20,721.40 05/05/2022 Professional services rendered through 4/30/2022 70442 Otto Electrical 337.50 05/05/2022 PD Engineering Support - Generator Connections 70443 Peak WiFi.com 24,210.00 05/05/2022 Network Services - Cannibas Video Wall Check Name Check Amount Check Date Invoice Desc

PHOENIX GROUP INFORMATION
70444 SYSTEMS 2,614.38 05/05/2022 Billing for March 2022 70445 PORTABLE JOHNS INC. 108.12 05/05/2022 Single Unit Rental - Mar 13 2022 - Apr 9, 2022 70446 PROCARE JANITORIAL SUPPLY 686.06 05/05/2022 City Hall Supplies Emergency 6" waterline repair on S 14th between Grand & 70447 R. BAKER INC. 108,437.35 05/05/2022 Rockaway
City of GB Major Street Maintenance Ramona & 9th St70448 S CHAVES CONSTRUCTION 49,020.15 05/05/2022 Release of Retention

SAN LUIS OBISPO CO SHERIFF'S
70449 OFFICE 79.00 05/05/2022 Lab Statement for February 2022 70450 SANTA MARIA ELECTRIC, INC. 2,850.00 05/05/2022 April 2022 Progress Billing - AIA G702 G703 Attached SCOTT CLEERE Oba CREATIVE
70451 ATHLETICS 500.00 05/05/2022 Assemble nets and templating lines pickleball 70452 Siteone Landscape Supply, LLC 61.26 05/05/2022 Supplies for Mentone Park 70453 SOUTHERN CALIF GAS CO 409.99 05/05/2022 Gas charges for City Facilities - 3/13/22 - 4/12/22 70454 SpeakWrite Billing Department 319.04 05/05/2022 Billing Invoice for April 2022

STACY JOHNSON OBA ARROYO
70455 GRANDE GLASS 343.11 05/05/2022 Train Station Window Replacement 70456 STATE DISBURSEMENT UNIT 250.00 05/05/2022 Child Support Garnishment for employee 70457 STATE DISBURSEMENT UNIT 154.50 05/05/2022 Child Support Garnishment for employee 70458 STATE WTR RESRCES CNTRL BOARD 7,044.49 05/05/2022 Arrearages Program Refund of unused funds 70459 STEPHENSON, ADRIANA 80.00 05/05/2022 Refund security deposit #2529 GHLow 4/9/22 70460 Sweeton, Christopher 500.00 05/05/2022 Reimbursement for COBRA - May 2022 70461 TEMPLETON UNIFORMS 1,197.63 05/05/2022 Uniforms for Employees 70462 TURNER, NICOLE 80.00 05/05/2022 2556 refund security deposit 4/23/22 16th St Contract base rate and usage charge for 3/21/22 to 4/20/22 70463 ULTREX 93.48 05/05/2022 for Sharp/SHA-MX-C304W
70464 UNIVAR USA INC 5,201.50 05/05/2022 Caustic Soda
NCMA Staff Extension Srvs FY21-22. For services rendered 70465 Water Systems Consulting Inc. 3,518.40 05/05/2022 from 3/1/2022-3/31/2022 TOTAL $ 710,035.97

ACCOUNTS PAYABLE
CH ECK DATE 05/06/2022
Name

FRANCHISE TAX
70466 BOARD

FRANCHISE TAX
70467 BOARD
TOTAL
Special Check Run
Check Amount Check Date Invoice Desc
388.85 05/06/2022 State Franchise Tax Board Garnishment for employee

75.00 05/06/2022 State Franchise Tax Board Garnishment for employee $ 463.85

ACCOUNTS PAYABLE
------
- ---- - -~- -- ---- ----~----- ----------~-- ------ ------ ---------------- ----- -· ---------~- ~ ---~~-~ -- - -1
Check Name Check Amount Check Date Invoice Desc
70468 ADAMS ASHBY GROUP LLC 6,000.00 05/12/2022 General Administration 20-CDBG-CV2/3 April 2022 70469 AIRGAS USA LLC 144.78 05/12/2022 Large Acetylene, Large Argon, Large Oxygen 70470 ALLYSON FISCHLIN 135.64 05/12/2022 UB Refund due to Ovrpmt on Closing Acct# 19692 70471 AMANDA CERDA 173.03 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20870 70472 AT&T 1,984.41 05/12/2022 City Hall Telephones 3/25/22 - 4/24/22 70473 AUTO ZONE INC 300.90 05/12/2022 Parts for Truck
Per Diem for Cmdr. Millard while attending POST Command College 70474 Bryan Millard 335.00 05/12/2022 in San Diego, CA 6/5/22 through 5/10/22

CENTER FOR EDUCATION &
70475 EMPLOYMENT LAW 159.00 05/12/2022 Subscription Renewal for Public Employment Law Report 70476 CHARTER COMMUNICATIONS 736.69 05/12/2022 City Facilities - Internet Charges 4/16/22 - 5/15/22 70477 Colleen Petetit 58.73 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20273 70478 DATAPROSE LLC 2,144.75 05/12/2022 Northside Utility Billing - April 2022 70479 DE LAGE LANDEN 227.29 05/12/2022 Lease payment for Sharp/MX-5071 - May 2022 70480 DE LAGE LANDEN 67.43 05/12/2022 Services for Sharp MX-C304W 70481 DE LAGE LANDEN 312.11 05/12/2022 Services for Sharp MX-5071

DEPT OF JUSTICE

ACCOUNTING
70482 OFFICE/CASHIERING UNIT 873.00 05/12/2022 Live Scan Statement April 2022 70483 DNB INDUSTRIAL SUPPLY 400.14 05/12/2022 Tools and supplies for shop 70484 Express Printing 748.17 05/12/2022 Notices
70485 FORREST, ANNA 80.00 05/12/2022 2552 16th St Park security deposit refund 5/1/22 70486 Gabrielle Ruggerone 30.95 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20292 70487 GRAINGER 121.24 05/12/2022 Supplies for the Shop/Yard 70488 GURROLA, ROBERT 80.00 05/12/2022 2497 16th Street 4/17 /22 security deposit refund 70489 Henry Randy Mercado 227.46 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20401 Per Diem while attending Leadership & Accountability training 70490 Joshua Ruiz 155.00 05/12/2022 Mountain View, CA - 5/16 and 17 /2022 70491 Juliana Conaway 322.10 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20131 LexisNexis Risk Data
70492 Management, Inc. 808.50 05/12/2022 Annual Subscription 70493 LOPEZ, MARY 80.00 05/12/2022 2530 Grover Heights Lower security deposit refund 4/30/22 Michael K. Nunley & Sewer System Upgrades PM & Meetings CIP 5001 & 5002. Billing 70494 Associates, Inc. 10,513.22 05/12/2022 through Apr 30, 2022 70495 MICHAEL YORKY 45.39 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 21098

MIER BROS LANDSCAPE
70496 PRODUCTS 381.44 05/12/2022 Gorilla Hair @ City Hall 70497 MINERS HARDWARE 1,270.27 05/12/2022 Irrigation supplies for Grover Heights Park CM for Measure K-14 Street Repair & Rehab, Seabright CIP 2295-13. 70498 MNS Engineers, Inc. 39,748.90 05/12/2022 Professional services for the period April 1, 2022 to April 30, 2022 70499 NARTATEZ, NORALIZA 80.00 05/12/2022 2567 Grover Heights 5/1/22 security deposit refund 70500 New Times 318.00 05/12/2022 New Times_lnv 338835_Newspaper Ad_ 4-14-2022 70501 NICHOLAS W LARASH 32.20 05/12/2022 UB Refund due to Ovrpmt on Closing Acct# 19298 70502 O'REILLY'S AUTOMOTIVE INC 622.78 05/12/2022 Tools for Shop Major Street Maintenance Project CIP 2283. Professional services 70503 Omni-Means C/O GHD, Inc. 4,243.00 05/12/2022 rendered through 4/2/2022 70504 PAM HORTON 128.45 05/12/2022 UB Refund due to double pmt on Acct# 3664

PETTY CASH-BRUCE
70505 BUCKINGHAM COMM DEV 28.92 05/12/2022 Petty Cash Reimbursement 2021/2022 70506 POINT EMBLEMS, LLC 1,664.31 05/12/2022 500Patches 70507 POWELL, CHANTELLE 80.00 05/12/2022 2517 16th St Park security deposit refund 4/10/22 Principal Life Insurance
70508 Company 4,886.07 05/12/2022 Employee insurance premiums - April 2022 I -
r· -------- ----, Check Name Check Amount Check Date Invoice Desc Principal Life Insurance
70509 Company 4,752.61 05/12/2022 Employee insurance premiums - May 2022 70510 Pro Force Law Enforcement 753.07 05/12/2022 Saker 556K asr, specwar 556 Flash Hider Change order request for additional LF and Tons on Pay App 1 thru 70511 R. BAKER INC. 4,650.25 05/12/2022 2/28/2022. Water Main PR Owens Ct. CIP 4004 Per Diem while attending Code Enforcement Course Module Two in 70512 Randy Gonzalez 335.00 05/12/2022 Los Banos, CA 5/9/22 through 5/13/22 70513 Ready Refresh by Nestle 325.46 05/12/2022 Bottled water for City Hall - April 2022 70514 Ronald L Gardner , 110.30 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20411 70515 ROSE M BREWER 150.00 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 7161 Safa Darwish LLC Dba Darwish
70516 Cuisine 65.00 05/12/2022 Refund of overpayment on 2021 BTC 70517 SANDY MERSHON 149.38 05/12/2022 Reimburse Sandy for Tiny Tots purchases. 70518 SHAH, KEVAL 80.00 05/12/2022 2543 16th St Park security deposit refund 4/30/22 South County Chambers of
70519 Commerce 30,000.00 05/12/2022 SCCC Inv 13197 GB Cowork Program 5-6-2022 . 70520 STEVEN HENSLEY 234.46 05/12/2022 UB Refund due to ovrpmt on Closing Acct# 20887 70521 TCA Tools Inc 340.82 05/12/2022 Tools for shop and Public Works 70522 TEMPLETON UNIFORMS 138.48 05/12/2022 White Gloves and Duty Belt Tripepi, Smith & Associates,
70523 Inc. 693.75 05/12/2022 Tripepi Smith Inv 7944 AprilServices 4-30-2022 70524 VERIZON WIRELESS 103.24 05/12/2022 Monthly charges Comm Dev & Parks(4/4/22 - 5/26/22) TOTAL $ 123,631.09

ACCOUNTS PAYABLE
CHECK DATE 05/19/2022
____ , -- -
Check Name Check Amount Check Date Invoice Desc
70525 Alexander's Contract Services 3,329.46 05/19/2022 South Side meter reads May I 2873 meters APWA (American Public Works Membership Renewal - period 8/1/2022 through 7/31/2023 70526 Association) 740.00 05/19/2022 for 4 PW Employees 70527 AT&T 135.88 05/19/2022 Monthly Water Alarm Circuits 5/7 /22 - 6/6/22 70528 AT&T 611.76 05/19/2022 City Hall & PD Fax & Modem 3/22/22 - 4/21/22 70529 AUTOSYS LLC 742.50 05/19/2022 Front St lift station - Design/PM 70530 Boone Printing & Graphics 212.81 05/19/2022 Boone Graphics_lnv85314_CityLetterhead_5-17-2022 70531 Burdine Printing & Graphics 334.95 05/19/2022 Burdine_lnv 45718_NamePlates_5-3-2022 City of GB CIP 4267-2 Water Main Upgrade Project 201240 I 70532 CANNON ASSOCIATES 7,611.00 05/19/2022 April services

CONFLUENCE ENGINEERING SOLUTIONS,
70533 INC 1,100.00 05/19/2022 March 2022 DDW Reports. Invoice Period 4/1/22-4/30/22 70534 CORRAL, MICHELLE 44.00 05/19/2022 Mother son dance refund less admin fees COUNTY OF SAN LUIS OBISPO March-April 2022 Billing for Cross-Connection Control 70535 ENVIRONMENTAL HEALTH SER 1,385.30 05/19/2022 Services 70536 Deltina Coffee Roasters 62.50 05/19/2022 Deltina Coffee_lnv 1416_0fficeCoffee_5-22 70537 DIZON, NOELLIE 80.00 05/19/2022 2557 GH Upper/Lower security deposit refund 5/7 /22 70538 Erik Ruelas 70.00 05/19/2022 Reimburse to PW employee for Grade Dl certificate. 70539 FAMCON Pipe & Supply, Inc. 3,224.66 05/19/2022 Operating Supplies 70540 FRANCHISE TAX BOARD 288.71 05/19/2022 Franchise Tax Board Garnishment for employee 70541 G.T. COX ELECTRIC 696.50 05/19/2022 purchase and install lighting in Kathy's office 70542 GALINDO, PERFECTO 80.00 05/19/2022 2580 GH Lower 5/8/22 security deposit refund Grover Beach Police Officers Association Dues paycheck date 70543 GROVER BEACH POLICE OFFICERS ASSOC. 1,100.00 05/19/2022 5-20-22 70544 Harmony Slover 158.34 05/19/2022 UB Refund due to ovrpmt on Closing Acct# 20342 70545 Henderson, Lance 95.00 05/19/2022 PW Event Reimburse Lance Henderson 70546 Hinderliter DeLlamas & Associates 6,000.00 05/19/2022 Cannabis Management Services for April 2022 70547 J.B. DEWAR INC. 5,850.70 05/19/2022 Gas Cards Statement 70548 Johns, Tamie 57.75 05/19/2022 Tic Tac Toe Mother Son 70549 Kasey Joseph 10.56 05/19/2022 UB Refund due to ovrpmt on Closing Acct# 20313 70550 LEWIS, JAYCEE 30.00 05/19/2022 Tiny Tot overpayment

METROPOLITAN TRANSPORTATION
70551 COMMISSION ATTN: DEVME 2,000.00 05/19/2022 Street Saver Annual Subscription 7 /1/2022-6/30/2023 70552 National Business Furniture 2,334.49 05/19/2022 Big and Tall High Back Chair - Qty 1 70553 NATIONAL DEMOGRAPHICS, INC 15,000.00 05/19/2022 National Demographics_lnv 1456_Consulting_7-24-22 70554 New Times 212.00 05/19/2022 New Times_lnv 340029_NewspaperPublication_5-12-22 70555 Office Depot 347.37 05/19/2022 Office Depot_lnv 239276506001_Supplies_ 4-25-2022 70556 PACIFIC GAS AND ELECTRIC 216.01 05/19/2022 Public Works Electric Charges 4/8/22 - 5/5/22 70557 PAOLINA, DANIEL 80.00 05/19/2022 2455 16th St 5/7 /22 security deposit refund 70558 PLUMLEE, SARAH 44.00 05/19/2022 Refund Mother Son Dance 5/13/22 less admin fee 70559 Pope Management 200.00 05/19/2022 Toilet Rebate @ 1690 Brighton - 1

SAN LUIS OBISPO AIR POLLUTION
70560 CONTROL DISTRICT 1,809.40 05/19/2022 Renewal of Equipment 70561 SMITH, DONALD 750.00 05/19/2022 Cash for Grass rebate @ 348 Brighton 1018.13 sq ft 70562 South County Chambers of Commerce 22,588.33 05/19/2022 SCCC_lnv 13274_GBBuyLocal-EcoDev-Apri1_5-9-2022 SOUTH SAN LUIS OBISPO CO. SANITATION
70563 DISTRICT 124,022.81 05/19/2022 So San Luis Obispo Monthly Pmt for April 2022 70564 STATE DISBURSEMENT UNIT 154.50 05/19/2022 Child Support Garnishment withholding order for employee 70565 STATE DISBURSEMENT UNIT 250.00 05/19/2022 Child Support Garnishment withholding order for employee Reimbursement for BBQ Supplies for PW Appreciation
70566 STEELE-PEARSON LYNN 1,003.50 05/19/2022 (80ppl) Smart & Final 70567 Tripepi, Smith & Associates, Inc. 7,145.00 05/19/2022 Tripe pi Smith_ Inv 8021_Retainer _5-15-2022 70568 VARI SALES CORPORATION 1,194.38 05/19/2022 Vari Desk Cube Corner Qty 2 Check Name Check Amount Check Date Invoice Desc
70569 VERIZON WIRELESS 1,493.26 05/19/2022 Cell Phone Service 3/F /22 to 4/26/22 70570 Vital Records Holdings, LLC 69.05 05/19/2022 Document storage - April 2022 70571 Vital Records Holdings, LLC 783.35 05/19/2022 Document storage and destruction - May 2022 70572 William Starr 154.73 05/19/2022 UB Refund due to ovrpmt on closing Acct# 20492 TOTAL $ 215,904.56

ACCOUNTS PAYABLE
t:hedt ftlmt dleclcAmount Check Date ~~
AFLAC INC. AITN: REMIITANCE
70573 PROCESSING SERVICES 397.94 05/27/2022 Employee AFLAC Premiums - May 2022 70574 AGPVideo 1,810.00 05/27/2022 City Council/Planning Commission Meetings for March ANGELICA ZARCO OBA HOLISTIC SYS INT Consulting Services Rendered for Implementation of Newly 70575 SOLUTIONS 7,500.00 05/27/2022 Adopted Fee Schedule 70576 Angello's Floor Coverings 3,000.00 05/27/2022 Deposit for Briefing Room Flooring 70577 Anna Lanier 111.60 05/27/2022 Reimburse Anna for Tiny Tots supplies 70578 Anna Lanier 2,220.40 05/27/2022 CFS Tiny Tots May 2022 70579 AT&T 127.86 05/27/2022 CALNET Connect 4/15/22 thru 5/14/22 70580 AUTO ZONE INC 60.59 05/27/2022 oil for unit 204
70581 Avenu Insights & Analytics 900.00 05/27/2022 Clearview/STARS Service for 3rd Qtr 2021 Data

BLUE SHIELD OF CA LIFE & HEALTH
70582 MEDICAL EYE SERVIC 622.50 05/27/2022 Employee Insurance Premiums - June 2022 Project 211107 Street & Roadway Design Measure K-14 CIP 70583 CANNON ASSOCIATES 32,417.32 05/27/2022 2295-14
70584 CARQUEST AUTO PARTS 266.75 05/27/2022 Brake Pad and Rotors for Unit 202

CITY OF ARROYO GRANDE RECREATION
70585 SERVICES DEPT 3,323.61 05/27/2022 Summer 2022 Activity Guide printing and postage 70586 CITY OF PISMO BEACH 56,000.00 05/27/2022 Dispatch Services for April 2022 & May 202 70587 Connie Olivo 80.00 05/27/2022 2579 Grover Heights Lower 5/14/22 security deposit refund

COUNTY OF SAN LUIS OBISPO COUNTY
70588 CLERK 2,598.00 05/27/2022 Fee Schedule January 1, 2022 -June 30, 2022

DEPARTMENT OF TRANSPORTATION
70589 AITN: CASHIERING OFFI 487.09 05/27/2022 Signals & Lighting - January 2022 through March 2022 RFP Front Street Sewer Lift Station. For professional services 70590 Diversified Project Svcs lntn'l Inc. 1,665.00 05/27/2022 through May 08,2022 70591 DJ'S PLUMBING INC 922.00 05/27/2022 New Faucet - Fire Dept 70592 Erik Ruelas 152.87 05/27/2022 ERuelas Educational Reimbursement 5-19-2022 Cleaning for Ramona & GBCC. Building attendant services 70593 EXECUTIVE JANITORIAL INC. 3,960.00 05/27/2022 May2022 70594 FERGUSON ENTERPRISES INC. #1350 97.86 05/27/2022 Antibacterial Wipes for the Shop 70595 GATOR CRUSHING & RECYCLING 48.71 05/27/2022 Concrete Dump

GLADWELL GOVERNMENTAL SERVICES,
70596 INC. 700.00 05/27/2022 Gladwell Services for Retention Schedule NCMA 2021 Annual Report. Professional services from April 70597 GSI Water Solutions, Inc 7,844.80 05/27/2022 1, 2022 through April 30, 2022 70598 HARRIGAN, KIMBERLY 919.00 05/27/2022 2564 Ramona security deposit refund 4/30/22 70599 Henderson, Lance 154.44 05/27/2022 Reimbursement for supplies for PW Appreciation Barbecue 70600 Hodges, Caressa 80.00 05/27/2022 2502 16th St park 5/15/22 security deposit refund 70601 JAS PACIFIC 8,096.02 05/27/2022 JAS April2022 PlanChecks 70602 Jennifer Ann Anderson 140.00 05/27/2022 CFS Yoga May 2022 Kawagoe, Kent M. PH.D., Licensed
70603 Psychologist 300.00 05/27/2022 Kent Kawagoe PreEmploymentEval Walker,M. 4-30-22 70604 Kristopher Doe 370.76 05/27/2022 Third payment for 3/11 - 5/27 /22 Paint class Traffic signal maintenance 2022 - March 2022 Oak Park & 70605 LEE WILSON ELECTRIC CO. INC 1,020.00 05/27/2022 ECR 70606 Michael K. Nunley & Associates, Inc. 5,403.64 05/27/2022 Asset Management PM I Billing through Apr 30, 2022 GB Development Code Update. Professional services from
70607 MOORE IACOFANO GOLTSMAN, INC 22,027.50 05/27/2022 April 1, 2022 to April 30, 2022 70608 NOAH, HANNAH 80.00 05/27/2022 2555 Grover Heights Upper security deposit refund 5/14/22 70609 PHELAN KATHRYN 263.90 05/27/2022 CFS Tai Chi for May 2022 70610 POINT EMBLEMS, LLC 3,980.94 05/27/2022 500 patches 70611 Principal Life Insurance Company 5,014.99 05/27/2022 Employee Insurance Premiums - June 2022 Check Name Check Amount Check Date Invoice Desc
70612 Pro Force Law Enforcement 2,057.08 05/27/2022 Panel Set, Conceal Carrier, Soft Trma Pit 70613 R & T EMBROIDERY INC. 1,061.49 05/27/2022 Hat & Beanies for the PW Crew 70614 RLH Construction 12,000.00 05/27/2022 GBFD Shower Stalls 70615 ROMERO, JORGE 259.00 05/27/2022 JRomero Educational Reimbursement 5-19-2022 2558 Grover Heights Upper and Lower 4/23/22 security
70616 SALTO, CLAUDIA 80.00 05/27/2022 deposit refund
70617 SANDY MERSHON 3,004.40 05/27/2022 CFS Tiny Tots May 2022 70618 Siteone Landscape Supply, LLC 678.43 05/27/2022 Irrigation repairs @ the Train Station 70619 South County Chambers of Commerce 443.78 05/27/2022 SCCC - Tourism: website renewal/sticker project

STANLEY CONVERGENT SECURITY
70620 SOLUTIONS INC. 74.23 05/27/2022 Maintenance charges 6/1/22-6/30/22 16th & Mentone 70621 STREATOR PIPE & SUPPLY 441.14 05/27/2022 Ramona Garden Park -Faucet 70622 SUN RIDGE SYSTEMS, INC. 75,516.94 05/27/2022 25% Deposit on CAD/RMS System 70623 ULTREX 42.81 05/27/2022 Copier Sharp SHA-MX-5071
Registration for Homeless Liaison Officer for Gonzalez to 70624 US BANK CORPORATE PAYMENT SYSTEMS 16,254.65 05/27/2022 attend in Anaheim, Ca 4/8/22 70625 Venco Power Sweeping, Inc. 6,152.72 05/27/2022 Street Sweeping Service April 2022 70626 Video Inspection Specialists 39,923.49 05/27/2022 April 2022 services City of GB Sewer Video Inspection North Half CM.
70627 WALLACE GROUP 5,601.67 05/27/2022 Professional services rendered through March 31, 2022 Rebate for Water Efficient Washing Machine @ 739
70628 WESTPHAL, LOREN 150.00 05/27/2022 Newport Ave.
70629 ZEE MEDICAL SERVICE COMPANY #34 185.86 05/27/2022 Medical supplies- Yard TOTAL $ 339,093.78

MINUTES

CITY COUNCIL MEETING
MONDAY, June 13, 2022
CALL TO ORDER Mayor Lee called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.

RECESS: At 6:00 p.m. Mayor Lee requested a 5-minute break due to technical difficulties.

RECONVENE: At 6:06 p.m. Mayor Lee called the meeting back to order and resumed with the agenda as posted.

MOMENT OF SILENCE
FLAG SALUTE The flag salute was led by Grover Beach Police Commander Munro.

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

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

CLOSED SESSION ANNOUNCEMENTS
None.

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

CEREMONIAL CALENDAR
None.

PRESENTATIONS

1. Police Department Annual Report was presented by Grover Beach Police Chief Peters PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda.
• Jeff Lane
With no further comments Mayor Lee closed public comment.

Agenda Item No. 5
Minutes: City Council Meeting Page 2
Monday, June 13, 2022

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 who would like to make any public comments there was no one so Mayor Lee closed public comment.

2. Minutes of the City Council Meeting held on Monday, May 23, 2022 Action: Approved the minutes as submitted.

3. Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City
Action: 1) Adopted the Resolution No. 22-17 calling and giving notice of a General Municipal Election to be held on November 8, 2022, for the election of certain officers of the City; 2) Adopted the Resolution No. 22-18 requesting the County Board of Supervisors to consolidate the City’s General Municipal Election with the Statewide General Election; and 3) Adopted the Resolution No. 22-19 adopting regulations for candidates governing submittal of a Candidate’s Statement.)
Resolution No. 22-17: A Resolution of the City Council of the City of Grover Beach, California, calling for the Holding of a General Municipal Election to be Held on Tuesday, November 8, 2022, for the Election of Certain Officers as Required by the Provisions of the Laws of the State of California Relating to General Law Cities.

Resolution No. 22-18: A Resolution of the City Council of the City of Grover Beach, California, Requesting the Board of Supervisors of the County of San Luis Obispo to Consolidate a General Municipal Election to be Held on Tuesday, November 8, 2022, with the Statewide General Election to be Held on the Date Pursuant to §10403 of the Elections Code.

Resolution No. 22-19: A Resolution of the City Council of the City Of Grover Beach, California, Adopting Regulations for Candidates for Elective Office Pertaining to Candidates' Statements Submitted to the Voters at an Election to be Held On Tuesday, November 8, 2022.

4. Second Reading and Adoption of an Ordinance Amending the Development Code to Implement Housing Element Programs; Zoning Map Amendment; Other Development Code Updates; and Authorizing Submission of a Local Coastal Program Amendment to the California Coastal Commission
Action: Conducted second reading, by title only, and adopted Ordinance No. 22-06 amending Municipal Code Article IX (Development Code) Chapters 2-6 and 8-9; and adopted Resolution No. 22-20 authorizing the submission of a Local Coastal Program Amendment to the California Coastal Commission.

Ordinance No. 22-06: An Ordinance of the City Council of the City of Grover Beach, California Amending Grover Beach Municipal Code Article IX Development Code Chapters 2-6 And 8-9 Including A Zoning Map Amendment.

Resolution No. 22-20: A Resolution of the City Council of the City of Grover Beach, California, Authorizing and Directing the Community Development Director to Submit the Local Coastal Minutes: City Council Meeting Page 3
Monday, June 13, 2022
Program (LCP) Amendment Associated with Ordinance No. 22-06 to the California Coastal Commission for Final Certification.

5. Resolution Confirming a List of Street Projects Funded by SB 1: The Road Repair and Accountability Act
Action: Adopted Resolution No. 22-21 to Incorporate the List of Street Projects funded by SB1: The Road Repair and Accountability Act into the FY 2022-23 budget.

Resolution No. 22-21: A Resolution of the City Council of the City of Grover Beach, California, Adopting a List of Projects for Fiscal Year 2022-23 Funded by SB 1: The Road Repair and Accountability Act of 2017.

6. Introduction and First Reading of an Ordinance to Amend Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code to Add Health Insurance Benefits
Action: Introduced and conduct the first reading, by title only, the Ordinance to amend Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council health benefits and schedule a hearing for June 27, 2022 to provide a second reading and adopt the Ordinance.

7. Appointment to the Planning Commission
Action: Confirmed and approved Mayor Lee’s recommendation and adopted Resolution No. 22-22 to Appoint Anne Holden to a four-year term of office, scheduled to expire on May 31, 2026.

Resolution No. 22-22: A Resolution of the City Council of the City of Grover Beach, California Authorizing the Appointment of Anne Holden to the Grover Beach Planning Commission.

8. Annual Approval of the City of Grover Beach Investment Policy Action: Reviewed and Approved the City of Grover Beach Investment Policy.

It was motioned by Council Member Miller and seconded by Council Member Robert to approve Consent Agenda Item Nos. 2, 3, 4, 5, 6, 7, and 8 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.

Minutes: City Council Meeting Page 4
Monday, June 13, 2022

PUBLIC HEARINGS

9. Proposed South County Sanitary Service Rate Increases Mayor Lee read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.

Administrative Services Director Purcell gave a brief introduction of Bill Staler and Jeff Clarion, District Manager of the South County Sanitary Services who presented a PowerPoint Presentation discussing the rate increase.

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 Rushing and seconded by Mayor Pro Tem Bright to 1) Conducted the Proposition 218 public hearing and determined the official numbers of written protests received on the proposed rate increase and 2) the number of protests received was eleven, below 50% of the number of property owners or customers authorized to vote and adopted the Resolution No. 22-23 approving the request by South County Sanitary Services for rate increases for solid waste collection and disposal services pursuant to the City’s Franchise Agreement effective June 15, 2022, January 1, 2023 and January 1, 2024. 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. 20-23: A Resolution of the City Council of the City of Grover Beach, California, Adopting Integrated Solid Waste Rates for June 15, 2022, January 1, 2023, and January 1, 2024.

10. FY 2022-23 Proposed Revised Budget
Mayor Lee read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.

Administrative Services Director Purcell presented a PowerPoint Presentation discussing the FY 2022-23 proposed revised budget.

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 5
Monday, June 13, 2022
Action: Received an update on the FY 2022-23 proposed revised budget with the final adoption on June 27, 2022.

11. 2022 State Community Development Block Grant Application (CDBG) Mayor Lee read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.

Associate Planner Reese presented PowerPoint Presentation discussing the submission of the 2022 CDBG application also, stated Paul Ashby from Adams Ashby Group was available for questions if needed.

Mayor Lee invited public comment on this matter.
• Janna Nichols
There being no further public comments received, the Mayor closed the Public Hearing.

Action: It was motioned by Council Member Robert and seconded by Mayor Pro Tem Bright to conduct a Public Hearing and adopted Resolution No. 22-24 authorizing the submission of a 2022 Community Development Block Grant (CDBG) Public Service application for a Non-Congregate Emergency Shelter Operations Program. 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. 22-24: A Resolution Approving an Application for Funding and the Execution of a Grant Agreement and any Amendments thereto from the 2021-2022 Funding Year of the State CDBG Program.

RECESS: Mayor Lee requested a 5-minute break, upon consensus of the City Council, the meeting recessed at 8:03 p.m.

RECONVENE: At 8:11 p.m. the meeting reconvened with all members of Council present.

REGULAR BUSINESS

12. Resolution Authorizing the Purchase of Additional Unmanned Aerial Systems (Drones), Accepting a Donation of a Remote-Controlled Robot, and Updating the Police Department’s Military Equipment Policy as Required by AB 481 Mayor Lee read the title to the foregoing item and deferred to staff for a report.

Minutes: City Council Meeting Page 6
Monday, June 13, 2022
Police Commander Munro presented a PowerPoint Presentation discussing the purchase of Unmanned Aerial Systems and updating the Police Department’s Military Equipment Policy.

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

Action: It was motioned by Mayor Pro Tem Bright and seconded by Council Member Rushing to adopt Resolution No. 22-25 authorizing the purchase of Additional Unmanned Aerial Systems (Drones), Accepting a Donation of a Remote-Controlled Robot, and Updating the Police Department’s Military Equipment Policy as Required by AB 48 with the modification to the language in Paragraph I. 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. 22-25: A Resolution of The City Council of the City of Grover Beach, California, Authorizing the Purchase of Additional Unmanned Aerial Systems (Drones), Accepting a Donation of a Remote-Controlled Robot, and Updating the Police Department's Military Equipment Policy as Required by Ab 481.

PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on any items of interest which were within the jurisdiction of the City Council but were not listed on the agenda. With no one coming forward and no one on the line, the mayor stated no need to open the second round of public comment.

COUNCIL COMMITTEE REPORTS
Council Member Robert reported on the Integrated Waste Management Authority (IWMA) meeting.

Mayor Pro Tem Bright discussed SLO Council of Government/SLO Regional Transit Authority (SLOCOG/SLORTA) meeting.

Council Member Miller reported on the Visit SLO CAL Advisory Committee and the Homeless Services Oversight Council (HSOC).

Council Member Rushing stated as a liaison of the South County Chambers of Commerce, on Friday, June 17th, the Annual State of the South County 2022 will be held at the Vespera Resort in the Courtyard at 11:30 a.m. to 1:00 p.m.

Mayor Lee stated he provided an update on the Five Cities Fire Authority earlier in the meeting Minutes: City Council Meeting Page 7
Monday, June 13, 2022
and was unable to attend the South SLO County Sanitation District (SSLOCSD) meeting.

COUNCIL COMMUNICATIONS
Council Member Rushing mentioned the Sizzling Summer Concert series and this Sunday, June 19th, Unfinished Business will be preforming.

Mayor Pro Tem Bright stated she appreciated the voting your district flyer that was sent out, mentioned a letter and response from the City Manager regarding Front Steet and birds, and a letter that was received regarding an RV parked on State Parks land.

Council stated they are open to a conversation on a future agenda regarding the item of the birds on Front Street.

Mayor Lee mentioned Father’s Day is this weekend and to any father’s out there, Happy Father’s Day.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson thanked the Parks and Recreation Department for putting on the Sizzling Summer Concert Series a 12-week series each and every Sunday afternoon. He discussed the success of the Summer Garden tour and noted the vandalism that took place at the temporary pickleball court at Mentone Park, the temporary taping had been removed twice and we are looking at the video to determine who is responsible for this. He also, mentioned we have removed the no right turn on red signs located at Grand and Oak Park in place we have installed countdown signals.

CITY ATTORNEY’S REPORTS AND COMMENTS
None.

CLOSED SESSION
None.

Minutes: City Council Meeting Page 8
Monday, June 13, 2022

ADJOURNMENT
There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 8:49 p.m.
_____________________________

JEFF LEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
Deanne Purcell, Administrative Services Director
SUBJECT: Adoption of Revised FY 2022-23 Budget

RECOMMENDATION
Adopt Resolutions to adopt and appropriate funds for the Revised FY 2022-23 budget, set the FY 2022-23 Appropriations Limit from Tax Proceeds, and establish authorized positions in departments for FY 2022-23.

BACKGROUND
On June 13, 2022, staff presented the Revised Budget for FY 2022-23 to the City Council for review and public comment. The City shifted from an annual budget to a biennial cycle or twoyear budget for FY 2021-22 and FY 2022-23. The budget for the second year (FY 2022-23) was a projection and staff reviewed the projections in light of changing circumstances and requests to determine adjustments that are needed for this revised budget.

The total revised citywide budget for FY 2022-23 is $34.8 million, including $18.7 million in the City’s General Fund, $3.0 million in the Capital Projects Fund, $7.9 million in Enterprise Funds including Water and Wastewater Funds, and $5.2 million in Special Revenue Funds, not including the Capital Improvement Program (CIP). The Revised FY 2022-23 Budget includes $9.2 million in CIP funding for key capital projects or 26% of the total revised citywide budget. The FY 2022- 23 Revised Budget is a balanced budget that maintains current service levels with a 2% average increase in ongoing operating costs and ending reserves higher than the Council policy goal of 25% to provide sufficient reserves for emergencies or unforeseen events or needs.

Items included in the Revised Budget for FY 2022-23 are identified in the City Manager’s Letter of Transmittal in the revised budget document previously provided to the Council and posted on the City’s website for review. The Revised Budget maintains existing services with targeted investments to address Council Goals with a focus on the four Major City Goals: Economic Development, Housing and Homelessness, Public Safety, and Street Improvements. These investments include $3.3 million in Measure K-14 funds for street improvements along with $2.8 million from Water and Sewer Enterprise Funds, $2.1 million from the General Fund, and $920,000 in Special Revenue Funds for various capital projects.

The revised budget assumes a 4% increase in FY 2022-23 for sales tax revenue, or an increase from the original budget of $354,000, and includes $2.5 million in FY 2022-23 from Measure F-20 approved by voters in November 2020. The revised budget also assumes a 4% increase in FY 2022-23 for property tax revenues along with $1.6 million in commercial cannabis tax revenues Staff Report: Adoption of FY 2022-23 Revised Budget Page 2 June 27, 2022
in addition to application and regulatory fees. Cannabis tax revenues were lower than anticipated in FY 2021-22, so the revised budget reduces the FY 2022-23 revenue by $800,000. This decrease is partially offset by an increase of $250,000 for Transient Occupancy Tax (TOT), based on the actual revenues received through the third quarter of FY 2021-22, which are higher than anticipated due to increased short-term rentals and travel activity as public health restrictions in response to the COVID-19 pandemic have been lifted.

After reviewing the Revised Budget at the June 13th meeting, the Council indicated its overall support for the budget as presented including proposed allocations for American Rescue Plan Act (ARPA) funding for the $2.1 million in unexpended and additional disbursement to the City. Below are the proposed allocations by ARPA category with additional details about specific projects and expenditures to be provided to the Council during the next fiscal year:
• Homelessness Services and Programs $1.3 million
• Enhancing Government Services $432,000
• Aid to Local Businesses/Support for Tourism $215,000
• Assistance to Households $158,000
• Assistance to Nonprofits $50,000
The City’s overall fiscal outlook is positive which underscores the Council’s leadership in seeking revenue opportunities and staff’s diligence in managing costs while implementing Council policy direction. The Revised Budget for FY 2022-23 continues to reflect a strong local economy coming out of the pandemic and is a budget that addresses community needs in alignment with Council Goals with reserves of 40% that exceed the Council’s goal of at least 25% of operating expenditures. The budget maintains this level of reserves in the General Fund to continue protecting the City’s finances in light of economy uncertainties and enabling the City to address future needs such as improvements needed for parks and City facilities and infrastructure. Staff believes keeping the reserves at the proposed level is a prudent action for the City at this time and staff will continue to monitor the budget status and regularly report back to the Council.

Staff recommends the Council adopt the related Resolutions to approve a final budget and personnel allocation for FY 2022-23. Pending Council’s adoption, staff will incorporate any additional changes with the final budget to begin on July 1, 2022 and post it on the City’s website in July. Staff will return to the Council with quarterly financial reports over the next fiscal year.

FISCAL IMPACT
Adoption of the Revised Budget for FY 2022-23 appropriates $34.8 million in total citywide expenditures based on the estimated funding sources for FY 2022-23 of $34.8 million.

ALTERNATIVES
The City Council has the following alternatives to consider:

1. Adopt Resolutions to adopt and appropriate funds for the FY 2022-23 budget, set the FY 2022-23 Appropriations Limit from Tax Proceeds, and establish authorized positions in departments for FY 2022-23; or

2. Provide alternate direction to staff.

Staff Report: Adoption of FY 2022-23 Revised Budget Page 3 June 27, 2022

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

Attachments

1. Annual Appropriation Resolution

2. Gann Limit Resolution

3. Position Allocation Resolution
RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA APPROPRIATING THE REVISED FY 2022-23 BUDGET
WHEREAS, all requisite public hearings relating to the budget have been duly held, and all necessary findings have been made.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL:

PART I
THAT the amounts set forth for the purposes named herein shall, upon the adoption of this Resolution, become the Budget for the City of Grover Beach for FY 2022-23; and

PART II
THAT the general provisions governing this Resolution shall be as follows:

SECTION 1. APPROPRIATION OF THE REVISED FY 2022-23 BUDGET. Monies are hereby appropriated from each of the several funds of the City to each department of the City in the amounts set forth herein for employee services, supplies & services, minor capital, special activities, and capital improvements.

SECTION 2. TRANSFERS BETWEEN APPROPRIATIONS AND INCREASE IN APPROPRIATIONS.
a. Consistent with the Financial Policies of the City that are contained in Resolution No. 20-17 of the City Council, any adjustments in the amounts appropriated for the purposes indicated herein at the department/fund level shall be made only upon the motion to amend this Resolution adopted by the affirmative votes of a majority of a quorum of the City Council. Administrative changes within the department/fund level may be made without the approval of the City Council pursuant to Subsection (d) of this Section.
b. For accounting and auditing convenience, accounts may be established to receive transfers of appropriations from department appropriations for capital improvements & special activities in two or more different funds for the same project.
c. Department appropriations in Intra-governmental Service Funds (ISF) may be administratively adjusted, provided no amendment to this Resolution would be required to adjust the appropriation in the department receiving the service from the ISF.
d. Any adjustments made pursuant to Subsections (a), (b) or (c) of this Section shall be made consistent with written guidelines established by the City Manager.

Attachment 1
Resolution No. 22-XX Page 2
Revised FY 2022-23 AAR
SECTION 3. TRANSFER WITHIN AN APPROPRIATION. The funds allocated to the respective accounting object classes comprising the total appropriation for each program or department are for purposes of budgeting consideration and convenience only and are not intended to constitute separate appropriations; provided, however, that funds allocated to an object class may be expected for the purposes of any other object class if such expenditures are within the written guidelines established by the City Manager.

SECTION 4. CONTRADICTORY PROVISIONS OF PREVIOUS RESOLUTIONS. Any other prior Resolution or provision thereof of the City Council respecting the appropriation and administration of the Revised FY 2022-23 Budget which is in contradiction with this Resolution is hereby superseded.

Notwithstanding any other provisions of this Resolution, no funds appropriated into the Reserves of the City shall be expended, transferred, obligated, used, encumbered or otherwise disposed of except as specifically authorized by previously approved bonded indebtedness or until the City Council reallocates such appropriations by amending this Resolution as provided in Subsection 2(a) of this Part.

SECTION 5. ADMINISTRATION. The City Manager or his/her designee shall maintain all changes to this Resolution and shall cause to be filed with the City Clerk and the Administrative Services Director a copy of, and subsequent amendments to, this Resolution following its adoption by the City Council.

SECTION 6. CLERICAL CORRECTIONS. The adoption of this Resolution implements the motions and actions of the City Council with respect to the proposed Budget, as amended by those motions and actions, if any, for the direction in drafting this Resolution. By adoption of this Resolution, the City Council hereby directs responsible City staff members to make necessary technical and clerical corrections to this Resolution to implement the intent of the City Council. Such corrections shall not alter, in any manner, the substance or intent of the City Council’s adoption of this Resolution.

PART III
THAT the following amounts are appropriated to the various departments for the purpose or purposes indicated:

REVISED
FUND 01 - GENERAL FUND FY 2022-23
TO: ADMINISTRATIVE SERVICES DEPARTMENT $ 587,549
General Accounting, Information Technology
TO: CITY MANAGEMENT DEPARTMENT 1,303,754
Legislative, General Management, Human Resources,
Cannabis Regulatory
TO: COMMUNITY DEVELOPMENT DEPARTMENT 1,154,817
Planning, Building Inspection
TO: PARKS AND RECREATION DEPARTMENT 477,287
Recreation, Parks Facilities, Community Services
TO: POLICE DEPARTMENT 5,826,086
Police Support Services, Police Operations,
Investigations, Communications & Records
Resolution No. 22-XX Page 3
Revised FY 2022-23 AAR

REVISED
FUND 01 - GENERAL FUND -continued FY 2022-23
TO: PUBLIC WORKS AND UTILITIES DEPARTMENT 1,290,761
Facility Maintenance, Street Construction and
Repair, City Shop/Corp Yard, Code Enforcement
TO: NON DEPARTMENTAL 5,513,214
Operating Expenditures
TO: NON DEPARTMENTAL 2,310,600
Transfers Out
SUBTOTAL OPERATING & CAPITAL $18,464,068
TO: NON-DEPARTMENTAL 5,084,076
General Reserve
TO: NON-DEPARTMENTAL 729,884
Emergency Reserve
SUBTOTAL RESERVES $ 5,813,960
TOTAL GENERAL FUND $24,278,028
FUND 10 - PARKS CONSTRUCTION FUND
TO: PARKS AND RECREATION DEPARTMENT $ 9,000
Parks Facilities
TOTAL PARKS CONSTRUCTION FUND $ 9,000
FUND 11 – CAPITAL PROJECTS FUND
TO: CAPITAL IMPROVEMENT PLAN $ 3,045,000
TOTAL CAPITAL PROJECTS FUND $ 3,045,000
FUND 16 - SUBSIDIZED SENIOR TRANSPORTATION FUND
TO: PUBLIC WORKS AND UTILITIES DEPARTMENT $ 1,000
Senior Taxi Program
TOTAL SUBSIDIZED SENIOR TRANSP. FUND $ 1,000
Resolution No. 22-XX Page 4
Revised FY 2022-23 AAR

REVISED
FY 2022-23
FUND 17 - GAS TAX FUND
TO: PUBLIC WORKS AND UTILITIES DEPARTMENT $ 309,450
Street Construction and Repair
TO: NON DEPARTMENTAL 153,000
Transfers Out
TOTAL GAS TAX FUND $ 462,450
FUND 18 - LOCAL TRANSPORTATION FUND
TO: ADMINISTRATIVE SERVICES DEPARTMENT $ 4,500
General Accounting
TO: PUBLIC WORKS AND UTILITIES DEPARTMENT 80,000
Street Construction and Repair
TO: NON DEPARTMENTAL 160,000
Transfers Out
TOTAL LOCAL TRANSPORTATION FUND $ 244,500
FUND 19 – ROAD MAINTENANCE AND REHABILITATION FUND
TO: NON DEPARTMENTAL $ 299,000
Transfers Out
TOTAL ROAD MAINTENANCE AND REHAB FUND $ 299,000
FUND 20 – STREET REHABILITATION AND REPAIR FUND
TO: STREET CONSTRUCTION AND REPAIR $ 284,158
Street Construction and Repair
TO: CAPITAL IMPROVEMENT PLAN 3,380,000
TO: NON DEPARTMENTAL 50,000
TOTAL STREET REHABILITATION & REPAIR FUND $ 3,714,158
Resolution No. 22-XX Page 5
Revised FY 2022-23 AAR

REVISED
FY 2022-23
FUND 35 - PUBLIC SAFETY GRANTS FUND
TO: POLICE DEPARTMENT $ 80,000
Police Operations, Investigations;
Communications & Records
TOTAL PUBLIC SAFETY GRANTS FUND $ 80,000
FUND 43 – STATE MANDATED ADA FUND
TO: NON-DEPARTMENTAL $ 6,000
Transfers Out
TOTAL STATE MANDATED ADA FUND $ 6,000
FUND 55 – WASTEWATER DEVELOPMENT IMPACT FEE
FUND
TO: NON-DEPARTMENTAL 85,000
Transfers Out
TOTAL WASTEWATER DEVELOPMENT IMPACT FEE FUND $ 85,000
FUND 56 – PARKS FACILITIES DEVELOPMENT IMPACT

FEE FUND
TO: NON-DEPARTMENTAL 175,000
Transfers Out
TOTAL PARKS FACILITIES DEVELOPMENT IMPACT FEE FUND $ 175,000 FUND 57 – RECREATION FACILITIES DEVELOPMENT IMPACT

FEE FUND
TO: NON-DEPARTMENTAL $ 51,000
Transfers Out

TOTAL RECREATION FACILITIES DEVELOPMENT IMPACT FEE
FUND $ 51,000
Resolution No. 22-XX Page 6
Revised FY 2022-23 AAR

REVISED
FY 2022-23
FUND 58 – WATER DEVELOPMENT IMPACT FEE FUND
TO: NON-DEPRTMENTAL 32,000
Transfers Out
TOTAL WATER DEVELOPMENT IMPACT FEE FUND $ 32,000
FUND 71 – EQUIPMENT REPLACEMENT FUND
TO: ADMINISTRATIVE SERVICES DEPARTMENT $ 30,500
Minor Capital & Debt Service
TO: PUBLIC WORKS AND UTILITIES 60,000
Minor Capital & Debt Service
TO: POLICE
Minor Capital & Debt Service 144,981
TOTAL EQUIPMENT REPLACEMENT FUND $ 235,481
FUND 80 - WASTEWATER ENTERPRISE FUND
TO: NON-DEPARTMENTAL $ 107,019
TO: PUBLIC WORKS UTILITIES DEPARTMENT 629,854
Wastewater System, Storm Water System
TO: ADMINISTRATIVE SERVICES DEPARTMENT 377,293
Utility Billing
TO: CAPITAL IMPROVEMENT PLAN 1,845,000
TO: NON-DEPARTMENTAL 286,000
Transfers Out
TOTAL WASTEWATER ENTERPRISE FUND $ 3,245,166
FUND 81 - WATER ENTERPRISE FUND
TO: NON-DEPARTMENTAL $ 155,844
TO: PUBLIC WORKS AND UTILITIES DEPARTMENT 2,724,797
Water System
Resolution No. 22-XX Page 7
Revised FY 2022-23 AAR

REVISED
FY 2022-23
FUND 81 - WATER ENTERPRISE FUND -continued
TO: ADMINISTRATIVE SERVICES DEPARTMENT 380,548
Utility Billing
TO: CAPITAL IMPROVEMENT PLAN 880,000
TO: NON-DEPARTMENTAL 476,000
Transfers Out
TOTAL WATER ENTERPRISE FUND $ 4,617,189
FUND 82 - WATER CONSERVATION FUND
TO: WATER CONSERVATION $ 12,627
Water Conservation
TOTAL WATER CONSERVATION FUND $ 12,627
On motion by ______, seconded by _______, and on the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 27th day of June, 2022. _______________________________

JEFF LEE, MAYOR
ATTEST:
______________________________

WENDI SIMS, CITY CLERK
**DRAFT**
RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, SETTING THE FY 2022-23 APPROPRIATIONS LIMIT FROM TAX

PROCEEDS
WHEREAS, in accordance with Article XIIIB of the State Constitution, local governments are required to establish certain spending levels that cannot be exceeded; and WHEREAS, the City of Grover Beach has established in accordance with these requirements its FY 2022-23 appropriations as its base year; and WHEREAS, in accordance with these requirements, cities may annually increase their previous base year appropriations by the per capita income change of their City’s or County’s population increase; and
WHEREAS, the per capita income change from FY 2021-22 to FY 2022-23 has been set at 7.55%, and the City of Grover Beach certified population change has been set -1.34%; and WHEREAS, the FY 2021-22 appropriation (spending) limit for Grover Beach was $11,845,705 and, when multiplied by the allowed per capita income change increase and the certified population change increase, sets the FY 2022-23 appropriation limit from tax proceeds at $12,569,911.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby establish $12,569,911 as its FY 2022-23 appropriation limit from tax proceeds.

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

AYES:

NOES:

ABSENT:

ABSTAIN:
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California this 27th day of June, 2022. ___________________________________

JEFF LEE, MAYOR
Attest:
_______________________________

WENDI SIMS, CITY CLERK
Attachment 2
**DRAFT**
RESOLUTION NO. 22-__

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

CALIFORNIA ESTABLISHING THE NUMBER OF AUTHORIZED POSITIONS IN VARIOUS DEPARTMENTS OF THE CITY FOR THE FY 2022-23 BUDGET AND ESTABLISH THE 2022-23 SALARY SCHEDULE
WHEREAS, all requisite public hearings relating to the budget have been duly held, and all necessary findings have been made.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL:

PART I
THAT the number of permanent full-time positions in which persons may be employed by the City during FY 2022-23 is hereby establish as set forth in Part IV of this Resolution; and

PART II
THAT a change in the total number of permanent full-time positions authorized in a department in any Section of Part IV or part-time positions authorized in a department in any Section of
Part V shall only be accomplished by Resolution of the City Council; and THAT except as provided in Part III Section 3, the number of persons employed in permanent full-time positions shall not exceed the total number of authorized positions in a department in any Section of Part IV; and

PART III
THAT the number of permanent positions allocated by class to department is for budgeting consideration and convenience only, and is not intended to constitute separate authorization of permanent positions by class except as provided below:

SECTION 1. The number of permanent full-time positions allocated to any department may be adjusted, provided that the number of permanent full-time positions authorized in any Section of Part IV is not exceeded and that there are sufficient unspent appropriations available to fund the adjustment.

SECTION 2. The City Manager or his/her designee may, upon the recommendation of the Administrative Services Director, adjust the number of permanent full-time positions allocated by class within any Section of Part IV, provided that the total number of permanent positions authorized in any Section of Part IV does not change and that there are sufficient unspent appropriations as verified by the Administrative Services Department available to fund the adjustment.

SECTION 3. The number of part-time positions allocated to any department may be adjusted, provided that the number of part-time positions or their full-time equivalents (hereinafter “FTE”) authorized in any Section of Part V is not exceeded and that there are sufficient unspent appropriations available to fund the adjustment.

Attachment 3
Resolution No. 22-XX Page 2
FY 2022-23 PAR
SECTION 4. The City Manager or his/her designee may, upon the recommendation of the Administrative Services Director, adjust the number of part-time positions allocated by class within any Section of Part V, provided that the total number of part-time positions or their FTE authorized in any Section of Part V does not change and that there are sufficient unspent appropriations as verified by the Administrative Services Department available to fund the adjustment.

SECTION 5. The City Manager may, at his/her discretion, extend for a period of up to two months positions scheduled to be eliminated so as to ensure a smooth transition due to bumping, demotions, and other personnel adjustments required by attempting to accommodate employees affected by layoffs, provided that funds have been budgeted for the transition period.

SECTION 6. Any adjustment made pursuant to Sections 1 through 5 of Part III shall only be made within the guidelines established by the City Manager.

SECTION 7. By adoption of this Resolution, the City Council hereby directs responsible City staff to make necessary technical and clerical corrections to this Resolution to implement the intent of the City Council. Such corrections shall not alter, in any manner, the substance or intent of the City Council in adopting the Budget Resolution.

PART IV
THAT permanent full-time positions are authorized in the various departments as listed by Section as follows:

Number of
Months Positions
Authorized Authorized
SECTION 1. CITY MANAGEMENT DEPARTMENT Full Year 5
Legislative, General Management,
Human Resources
SECTION 2. ADMINISTRATIVE SERVICES Full Year 9

DEPARTMENT
General Accounting, Utility Billing, Risk Management
SECTION 3. COMMUNITY DEVELOPMENT Full Year 5.25

DEPARTMENT
Planning, Building Inspection
SECTION 4. PUBLIC WORKS AND UTILITIES Full Year 15.75
Facility Maintenance, Street Repair, City Shop/
Corp Yard, Wastewater, Water, Storm Water
SECTION 5. PARKS AND RECREATION DEPARTMENT Full Year 2
Recreation, Parks Facilities, Community Services
Resolution No. 22-XX Page 3
FY 2022-23 PAR
SECTION 6. POLICE DEPARTMENT Full Year 36
Police Support Services, Police Operations
Investigations, Communications & Records
TOTAL PERMANENT FULL-TIME POSITIONS 73
PART V
THAT part-time positions are authorized in the various departments as listed by Section as follows:

Number of
Months FTEs
Authorized Authorized
SECTION 1. CITY MANAGEMENT DEPARTMENT Full Year 0.00
Legislative, General Management,
Human Resources,
SECTION 2. ADMINISTRATIVE SERVICES Full Year 0.00

DEPARTMENT
General Accounting, Utility Billing
SECTION 3. COMMUNITY DEVELOPMENT Full Year 0.00

DEPARTMENT
Planning, Building Inspection
SECTION 4. PUBLIC WORKS AND UTILITIES Full Year 0.63
Facility Maintenance, Street Repair, City Shop/
Corp Yard, Wastewater, Water, Storm Water
SECTION 5. PARKS AND RECREATION DEPARTMENT Full Year 0.60 Recreation, Parks Facilities, Community Services
SECTION 6. POLICE DEPARTMENT Full Year 0.60
Police Support Services, Police Operations
Investigations, Communications & Records
TOTAL PART-TIME POSITIONS 1.83
Resolution No. 22-XX Page 4
FY 2022-23 PAR
Part VI
THAT the attached salary schedule (Exhibit A) is hereby adopted beginning July 1, 2022.

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

AYES:

NOES:

ABSENT:

ABSTAIN:
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting by the City Council of the City of Grover Beach, California this 27th day of June, 2022. _________________________________

JEFF LEE, MAYOR
ATTEST:
_______________________________

WENDI SIMS, CITY CLERK
**DRAFT**
STAFFING DETAIL & SALARY SCHEDULE 7/1/22
Section 1 - Executive Management MIN MAX
City Manager * 18,218
Police Chief * 12,486 13,110 13,766 14,454 15,177 15,936 Administrative Services Director * 11,257 11,820 12,411 13,031 13,683 14,367 Community Development Director * 11,203 11,763 12,351 12,969 13,617 14,298 Public Works Director/City Engineer * 11,203 11,763 12,351 12,969 13,617 14,298 Deputy City Manager * 10,088 10,592 11,122 11,678 12,262 12,875 Parks & Recreation Program Director * 8,072 8,476 8,899 9,344 9,812 10,302 Section 2 - Management & Confidential A B C D E F
Senior Engineer * 7,950 8,348 8,765 9,203 9,663 10,146
Capital Improvement Project Manager * 7,729 8,115 8,521 8,947 9,395 9,864 Senior Planner * 7,457 7,830 8,221 8,632 9,064 9,517
City Clerk/Executive Assistant * 7,307 7,672 8,056 8,459 8,882 9,326 Finance Manager * 6,698 7,033 7,385 7,754 8,141 8,549
Associate Engineer * 6,698 7,033 7,385 7,754 8,141 8,549 IT Specialist * 6,802 7,142 7,499 7,874 8,268 8,681
Public Works Supervisor * 5,889 6,183 6,493 6,817 7,158 7,516 Management Analyst * 5,614 5,895 6,189 6,499 6,824 7,165 Accounting Specialist 4,965 5,213 5,474 5,748 6,035 6,337 Administrative Analyst (Confidential) 4,821 5,062 5,315 5,581 5,860 6,153 Deputy City Clerk/Administrative Specialist (Conf) 4,464 4,687 4,922 5,168 5,426 5,697 Section 3 – Police Management & Confidential
Police Commander * 10,890 11,435 12,006 12,607 13,237
Police Services Analyst 5,794 6,084 6,388 6,707 7,043
Management Analyst/Police Department * 5,614 5,895 6,189 6,499 6,824 7,165 Administrative Assistant/Public Safety (Confidential) 4,649 4,881 5,126 5,382 5,651 \\Grover-City-Hall.int\Users\kmattocks\Desktop\Salary Schedules\Salary Schedule 7.1.22 6/16/2022
Exhibit A
Section 4 - Competitive Service
Police Sergeant 7,963 8,361 8,779 9,218 9,679 10,163
Associate Planner 5,842 6,134 6,441 6,763 7,101
Assistant Engineer 5,619 5,900 6,195 6,504 6,830
Assistant Planner 5,356 5,624 5,905 6,200 6,510
Police Officer 6,161 6,470 6,793 7,133 7,489 7,864
Communications Supervisor 5,127 5,384 5,653 5,936 6,232 6,544 City Mechanic 4,881 5,125 5,381 5,651 5,933
Code Compliance Officer 4,777 5,016 5,267 5,530 5,807
Community Services Technician II 4,777 5,016 5,267 5,530 5,807 Maintenance Worker III 4,772 5,011 5,261 5,524 5,800
Fleet Maintenance Coordinator 4,660 4,893 5,137 5,394 5,664 Building/Planning Technician 4,552 4,779 5,018 5,269 5,532 Equipment Mechanic II 4,568 4,796 5,036 5,288 5,552
Recreation Coordinator 4,546 4,774 5,012 5,263 5,526
Lead Communications/Records Technician 4,604 4,834 5,076 5,330 5,596 5,876 Records/Property Technician 4,604 4,834 5,076 5,330 5,596 5,876 Maintenance Worker II 4,332 4,549 4,776 5,015 5,266
Accounting Technician II 4,322 4,538 4,765 5,003 5,253
Communication/Records Technician 4,381 4,600 4,830 5,071 5,325 5,591 Accounting Technician I 4,116 4,322 4,538 4,765 5,003
Administrative Secretary 4,102 4,308 4,523 4,749 4,987
Community Services Technician I 4,042 4,244 4,456 4,679 4,913 Administrative Assistant III 3,884 4,078 4,282 4,496 4,721 It Assistant 3,823 4,015 4,215 4,426 4,647
Engineering Technician 4,284 4,498 4,723 4,959 5,207
Maintenance Specialist 3,657 3,839 4,031 4,233 4,444
Administrative Assistant II 3,495 3,670 3,853 4,046 4,248 Maintenance Worker I 3,483 3,658 3,841 4,033 4,234
Equipment Mechanic I 3,483 3,658 3,841 4,033 4,234
Administrative Assistant I 3,161 3,319 3,485 3,659 3,842 \\Grover-City-Hall.int\Users\kmattocks\Desktop\Salary Schedules\Salary Schedule 7.1.22 6/16/2022
Section 5 – Hourly/Part-Time/Miscellaneous Classes
Administrative Assistant I $18.24 $19.15 $20.11 $21.12 $22.17 Administrative Assistant II $20.17 $21.18 $22.23 $23.35 $24.51 Administrative Assistant III $22.41 $23.53 $24.71 $25.95 $27.24 Janitor (P/T) $15.45 $15.50 $16.00 $16.50 $17.00
Police Detective (P/T) $37.33 $39.19 $41.15 $43.21 $45.37 $47.64 Reserve Police Officer: $35.55 $37.32 $39.19 $41.15 $43.21 $45.37 Communications/Records Technician (P/T) $25.28 $26.54 $27.87 $29.26 $30.72 $32.26 Property/Records Technician (P/T) $24.69 $25.92 $27.22 $28.58 $30.01 $31.51 Police Officer Trainee (F/T) (monthly) $4,750.00
Executive Management Employee Group: Resolution No. 15-50; Resolution No. 16-34; and Resolution No. 16-36, Resolution No. 18- 50, Resolution 21-22
Management & Confidential Employee Group: Resolution No. 15-70; Resolution No. 16-23; Resolution No. 16-31; Resolution No. 17-10; Resolution No. 17-40; Resolution No. 18-03; and Resolution No. 18- 26, Resolution No. 18-51, Resolution No. 18-91, Resolution 20-12, Resolution 21-22, Resolution 21-32
Police Management & Confidential Employee Group: Resolution No. 15-44; Resolution No. 15-45; Resolution No. 16-32, Resolution No. 17-18, Resolution 18-54, Reso 19-62, Resolution 21-21
Police Officers Association: Resolution No. 15-75, Resolution 18 - 76, Resolution 20-04, Resolution 20-39, Resolution 21-08, Resolution 21-19
SEIU, Local 620: Resolution No. 15-63; Resolution No. 16-07; Resolution No. 17-37; and Resolution 18-02; Resolution 20-12, Resolution 21-19
\\Grover-City-Hall.int\Users\kmattocks\Desktop\Salary Schedules\Salary Schedule 7.1.22 6/16/2022
Agenda Item No. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: Approval of the City of Grover Beach Lease Policy

RECOMMENDATION
Review and approve the City of Grover Beach Lease Policy.

BACKGROUND
The Governmental Accounting Standards Board (GASB) issued Statement No. 87 (Leases) with the objective of being able to better meet the needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The requirements of GASB Statement 87 becomes effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter.

Attachment 1 contains the City’s Lease Policy which is presented to the Council for approval. The main purpose of this policy is to develop a dollar threshold of $50,000 for leases that is considered significant for reporting purposes. The City has three such leases for Public Works and Police vehicles including the mobile command center. This threshold removes the burden of applying the provisions of this Statement to small dollar items, such as leases for copy machines and small computer equipment, that are often leased in high volume but at low per-asset cost. This policy was reviewed by the City’s outside auditors to determine if the threshold was reasonable and they were in agreement. Upon approval, this policy will be effective at the beginning of the current fiscal year, or July 1, 2021, to be in line with the implementation of GASB No. 87 for reporting purposes in the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022.

FISCAL IMPACT
There is no fiscal impact with approving the Lease Policy.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Review and approve the City of Grover Beach Lease Policy; or

2. Do not approve the City of Grover Beach Lease Policy; or Staff Report: Approval of City of Grover Beach Lease Policy Page 2 June 27, 2022

3. Provide alternative direction to staff

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

Attachments

1. Lease Policy
7/1/2021
Lease Policy
Purpose
The purpose of the Lease Policy is to establish the dollar threshold at which the City of Grover Beach (the City) accounts for leases for external financial reporting purposes.

Adoption and Review
This policy shall be reviewed periodically for recommended revisions to maintain the policy in a manner that reflects the ongoing financial goals of the City and compliance with Generally Accepted Accounting Principles. The Administrative Services Department management shall adopt and revise the policy as necessary.

Policy
In accordance with Governmental Accounting Standard Board (GASB) Statement No. 87, Leases, a lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period in an exchange or exchange-like transactions (i.e., buildings, land, vehicles, and equipment). Any contract that meets this definition should be accounted for under lease guidance as identified in GASB Statement No. 87. Subject to certain provisions and exceptions noted in the guidance, leases are generally reported as follows in a government’s external financial statements:

Lessee: A lessee should recognize a lease liability and a lease asset at commencement of the lease term. A lessee should reduce the lease liability as payments are made and recognize an outflow of resources (i.e., expense) for interest on the liability. The lessee should amortize the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

Lessor: A lessor should recognize a lease receivable and a deferred inflow of resources at commencement of the lease term. A lessor should recognize interest revenue on the lease receivable and an inflow of resources in a systematic and rational manner over the term of the lease.

Effective July 1, 2021, the City has established a materiality dollar threshold for determining the inclusion or exclusion of leases in the external financial statements, both as lessee and lessor. At the commencement of the lease term, the City will analyze the terms and provisions of the lease agreement (contract) to calculate the value of the underlying asset.

Attachment 1
7/1/2021
An individual lease agreement (contract) that generates a right-to-use underlying asset value calculated at greater than or equal to $50,000 will be included in the external financial statements.

A lease agreement (contract) with an underlying asset value less than $50,000 may be included in the external financial statements at the discretion of the City Administrative Services Department management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.

Agenda Item No. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Approval of Second Amended and Restated Joint Powers Agreement for the San Luis Obispo County Integrated Waste Management Authority

RECOMMENDATION
Adopt a Resolution approving the Second Amended and Restated Joint Powers Agreement for the San Luis Obispo County Integrated Waste Management Authority and authorize the Mayor to execute the agreement on behalf of the City.

BACKGROUND
The Integrated Waste Management Authority (IWMA or Authority) is a Joint Powers Authority that previously was comprised of the County of San Luis Obispo (County), the seven cities (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo) and numerous special districts. The IWMA has been a key partner in assisting the City in meeting compliance with State mandates, including SB 1383 relating to organic food waste. Regional partnership in solid waste traditionally provides an economy of scale, ensures consistent education and outreach among member jurisdictions, and locally has been a successful means of meeting waste diversion and regulatory compliance since formation of the IWMA in 1994. The role of the IWMA has provided its member agencies with educational outreach on landfill diversion, source reduction, and emissions reduction efforts implemented in local communities.

The IWMA had been governed by a First Amended Joint Powers Agreement (JPA) entered into by the County and the seven cities. A Memorandum of Agreement (MOA) between the IWMA’s member jurisdictions and the special districts in the County with activated solid waste powers has governed the identified special districts’ participation in the IWMA. The IWMA was previously governed by a thirteen-member Board of Directors consisting of all five County Supervisors, one elected representative from each of the seven cities, and one elected representative from the participating special districts. However, in September 2021 the County provided notice of its intent to leave the IWMA effective November 15, 2021. Following this action, the remaining member agencies had to evaluate the future of the agency and its membership in continuing to provide cost-effective solid waste management services to comply with State regulations.

On October 25, 2021, the Council adopted Resolution 21-30 declaring its intention for the City of Grover Beach to remain a member of the IWMA subject to certain conditions:
• Removal of the five County supervisors as voting board members of the IWMA, • Removal of the eight-member [supermajority] voting provision, • Addition of a provision which limits the IWMA’s authority and ability to adopt, impose, or implement any rule, regulation, policy, or ordinance in excess of State requirements.

Staff Report: Approval of Second Amended and Restated JPA for the IWMA Page 2 June 27, 2022
The Council took subsequent action on November 22, 2021 to adopt a Resolution approving an amended version of the existing IWMA Joint Powers Agreement (JPA) with immediate changes required by the County’s withdrawal including the designation of the City of San Luis Obispo as the “designated agency” for the IWMA in place of the County. Following this action by the City and other cities in the county, a committee of staff from the IWMA and the remaining member agencies was formed to develop additional amendments to the JPA Agreement. The IWMA is a regional government entity representing its members in solid waste diversion and reduction efforts and as such remaining member agencies needed to agree on terms for the organization without the County’s involvement.

These additional amendments are reflected in the Second Amended and Restated JPA presented to the Council for approval following approval by the IWMA Board on April 13, 2022. Below are revisions included in this document shown in Attachment 1:
• A new Section 7 has been added, titled Expressed Limitation of Powers. This Section explicitly limits the Authority’s regulatory and ordinance power to state mandated legislation only by stating “The Authority’s power to adopt, impose, implement, and/or comply with regulations and ordinances is expressly limited to state-mandated legislation and exercising such powers as are imposed by law in the exercise of regulations related to solid waste, recycling, organic waste, and waste diversion. The Authority shall establish a budget policy requiring Board consideration of the minimum work required to comply with state mandates and regulations in the most demonstrably cost-effective way possible...”
• Section 15 (Withdrawal and Dissolution) was amended to provide for a six (6) month notice to withdraw as opposed to the 30 days that had been in the original JPA. • New updated recitals to include historical context and key pieces of legislation adopted after the original JPA. References to the County’s withdrawal is also provided for context, and AB 431, AB 1826, and SB 1383 are identified as these bills codified in State law expand the IWMA’s scope of service.
• Section 9.5 (Quorum and Voting) previously included a supermajority provision wherein any Board member could demand eight (8) affirmative votes on any item. This provision has been deleted and this section re-numbered as Section 10.6. • As previously noted, there was a separate MOA between the IWMA’s member jurisdictions and the special districts (referred to in the Agreement as “Authorized Districts”) that governed the special districts participation in the IWMA. Provisions have now been included in the Second Amended JPA addressing the special districts as Participating Agencies as signatories to the Agreement, to avoid confusion created by the existence of two documents (the JPA and the MOA). As permitted by the Public Resources Code Section 40977, the Second Amended JPA includes one Authorized District to be included as a member in the IWMA regional agency for the purpose of representation on the IWMA Board of Directors.

Staff recommends that the Council adopt a Resolution (Attachment 1) approving the Second Amended and Restated JPA to enable the City to continue its membership in the IWMA which significantly assists the City in meeting its solid waste management obligations under State law.

Staff Report: Approval of Second Amended and Restated JPA for the IWMA Page 3 June 27, 2022

FISCAL IMPACT
There is no fiscal impact to this action. IWMA fees are collected from solid waste ratepayers by South County Sanitary Service on behalf of the IWMA.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt a Resolution approving the Second Amended and Restated Joint Powers Agreement for the San Luis Obispo County Integrated Waste Management Authority and authorize the Mayor to execute the agreement on behalf of the City; or

2. Do not adopt Resolution; or

3. Provide alternative direction to staff.

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

Attachments

1. Resolution

2. Second Amended and Restated Joint Powers Agreement
RESOLUTION NO. 22-

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

CALIFORNIA, APPROVING THE SECOND AMENDED AND RESTATED JOINT

POWERS AGREEMENT TO ESTABLISH AN INTEGRATED WASTE

MANAGEMENT AUTHORITY AND AUTHORIZING THE MAYOR TO EXECUTE

THE AGREEMENT
WHEREAS, the Integrated Waste Management Authority (“IWMA”) is a JPA comprised of the County of San Luis Obispo, (“County”) seven local agencies (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo) and a representative of the Community Services District. The IWMA manages, on behalf of its members, hazardous waste, universal waste, solid waste, recycling, and food/green waste; and WHEREAS, the IWMA is a way for JPA members to pool resources and cost-effectively comply with various solid waste and other regulations including, but not limited to, Senate Bill (SB) 1383, the recently enacted Short Lived Climate Pollutants regulations. The IWMA staff is responsible for administration of over 40 different solid waste programs including household hazardous waste collection, electronics waste collection, and sharps disposal, and many of which require public education and outreach, monitoring, and reporting to the State; and WHEREAS, the City supports the IWMA through payment of solid waste management fees imposed on all solid waste ratepayers; and
WHEREAS, in or around 2001, a Memorandum of Agreement (“MOA”) was executed by and between the Cities, the County of San Luis Obispo, and certain special districts within San Luis Obispo County that possessed solid waste authority (“Authorized Districts”), amending the JPA Agreement to include the Authorized Districts for representation on the IWMA Board (also known as the First Amendment to the JPA Agreement); and WHEREAS, or April 13, 2022, the IWMA Board considered and approved amendments to the JPA Agreement (“Second Amended and Restated JPA”), including those reflecting the withdrawal of San Luis Obispo County from the IWMA, and directed IWMA staff to circulate it to Participating Agencies for approval (a true and correct copy of the Second Amended and Restated JPA is attached hereto as Exhibit A); and
WHEREAS, the Second Amended and Restated JPA shall amend the JPA Agreement and shall be considered a Memorandum of Understanding between the Cities and the Authorized Districts to enable and allow one (1) representative of the Authorized Districts to participate in the governance of the IWMA as a member agency pursuant to Section 40977 of the Public Resource Code to represent the interests of all Authorized Districts; and WHEREAS, all Authorized Districts are encouraged to execute the Second Amended and Restated JPA prior to October 15, 2022, or otherwise pursue means by which to achieve their waste diversion goals and to comply with the Integrated Waste Management Act, Assembly Bill 341, Assembly Bill 1826, Senate Bill 1383, and all current and future state mandated laws, rules and regulations; and
Attachment 1
Resolution No. 22- Page 2
WHEREAS, the City Council of the City of Grover Beach desires to acknowledge, accept, and agree to be bound by the terms and conditions of the Second Amended and Restated JPA.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby approves the Second Amended and Restated Joint Power Agreement for the San Luis Obispo County Integrated Waste Management Authority and authorizes the Mayor to execute the agreement on behalf of the City.

On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:

AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: 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 27th day of June 2022.

JEFF LEE, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
**DRAFT**

JOINT POWERS AGREEMENT

TO ESTABLISH AN

INTEGRATED WASTE MANAGEMENT AUTHORITY

FOR THE CITIES OF

SAN LUIS OBISPO COUNTY, CALIFORNIA
Attachment 2
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SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT

TO ESTABLISH AN

INTEGRATED WASTE MANAGEMENT AUTHORITY

FOR THE CITIES OF SAN LUIS OBISPO COUNTY, CALIFORNIA
THIS SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT is made and entered into this ___ day of _________, 2022, by and between the incorporated cities of Arroyo Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and San Luis Obispo, all being municipal corporations of the State of California and located within the boundaries of the County of San Luis Obispo California, hereinafter called “Cities.” WHEREAS, on May 10, 1994, an agreement was executed by and between the Cities and the County of San Luis Obispo (“County”) forming a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Government Code section 6500 et seq., for the purpose of facilitating the development of waste diversion programs and projects that provide economies of scale without interfering with individual agencies’ exercise of power within their own jurisdiction (hereinafter referred to as the “Original JPA Agreement”); and WHEREAS, pursuant to the Original JPA Agreement, the member agencies created and established a public entity identified as the San Luis Obispo County Integrated Waste Management Authority (“IWMA”); and
WHEREAS, in or around 2001, a Memorandum of Agreement (“MOA”) was executed by and between the Cities, the County, and certain special districts within the County (“Authorized Districts”) amending the Original JPA Agreement to include the Authorized Districts for representation on the IWMA Board; and WHEREAS, on or about November 15, 2021, the County withdrew from the IWMA; and the Cities and Authorized Districts determined that a single regional agency remained advantageous to advise, plan for, and implement solutions to common solid waste and a waste diversion efforts; and
WHEREAS, the IWMA was originally formed to meet the requirements of the California Integrated Waste Management Act (California Public Resources - 2 -
Code section 40000 et seq.) and all regulations adopted under that legislation require, among other things, that certain public agencies in California make adequate provision for solid waste management within their jurisdictions; and WHEREAS, since the IWMA’s formation, Assembly Bill 341 (Chesbro, 2011) (Recycling of Commercial Solid Waste (“MCR”)) was signed into law and established requirements for jurisdictions to implement a commercial solid waste recycling program designed to divert commercial solid waste; and WHEREAS,since the IWMA’s formation, Assembly Bill 1826 (Chesbro, 2014) (Recycling of Commercial Organic Waste (“MORe”)) was signed into law and established the requirement for jurisdictions to implement an organic waste recycling program to divert organic waste generated by businesses; and WHEREAS, since the IWMA’s formation, Senate Bill 1383 (Lara, 2016) was signed into law requiring jurisdictions to implement organic waste diversion programs that include providing organic waste collection services to businesses and residences, edible food recovery goals, public education and outreach, contamination monitoring and sampling activities, recordkeeping and reporting, organic materials and edible food recovery, infrastructure capacity planning, procurement of recovered organic waste products, and enforcement; and WHEREAS, the Cities and Authorized Districts continue to believe that by combining their separate powers they can achieve their waste diversion goals and satisfy the requirements of the Integrated Waste Management Act and other legislation more effectively than if they exercise those powers separately; and WHEREAS, the Cities affirm, that pursuant to this Second Amended and Restated Joint Powers Agreement, the IWMA remains a regional agency in accordance with Public Resources Code section 40970 et seq.; and WHEREAS, pursuant to Section 40977, the Cities shall include one (1) Authorized District to be included as a member in the IWMA regional agency for the purpose of representation on the IWMA Board of Directors; and WHERAS, the Authorized District “member” may change from time to time; the current elected or appointed Authorized District representative shall represent the collective interests of all Authorized Districts; and WHEREAS, this Second Amended and Restated Joint Powers Agreement shall be considered a Memorandum of Understanding between the Cities and the - 3 -
Authorized Districts to enable and allow one (1) representative of the Authorized Districts to participate in the governance of the IWMA as a member agency pursuant to Section 40977 of the Public Resource Code to represent the interests of all Authorized Districts; and
WHEREAS, the Cities and the Authorized Districts (together “Participating Agencies”) desire to establish and confer upon a separate legal entity the powers necessary to enable them to achieve their waste diversion goals and to comply with the Integrated Waste Management Act, Assembly Bill 341, Assembly Bill 1826, Senate Bill 1383, and all current and future state-mandated laws, rules and regulations to the extent allowed by law and by the terms and conditions of this Second Amendment; and
WHEREAS, the Participating Agencies desire to avoid a series of amendments to the Agreement over time due to future state-mandated legislation and programs, and as such, the parties desire to authorize the IWMA Board to enact policies, resolutions, and ordinances as are necessary to ensure and oversee compliance with any and all future state-mandated programs related to solid waste, recycling, waste diversion, and any other purpose of the Authority as provided in this Agreement.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

SECTION 1. Definitions.

To the extent that any of the following definitions conflict with any definition set forth in the California Integrated Waste Management Act, (Pub. Resources Code, § 40000 et seq.), and the Regulations promulgated thereunder, said Act and/or Regulations shall take priority. The terms defined in this Section that begin in this Agreement with quotation marks have the following meanings:

1.1 “Act” means the California Integrated Waste Management Act of 1989 (Pub. Resources Code, § 40000 et seq.) and all regulations adopted under - 4 -
that legislation, as that legislation and those regulations may be amended from time to time.

1.2 “Agreement” means this Second Amended and Restated Joint Exercise of Powers Agreement, as it may be amended from time to time.

1.3 “Authority” means the San Luis Obispo County Integrated Waste Management Authority, a joint exercise of powers agency created by the Members pursuant to this Agreement.

1.4 “Authorized Districts” means certain special districts with solid waste authority participating in the IWMA through this Second Amended and Restated Joint Powers Agreement, including but not limited to the Avila Beach Community Services District, California Valley Community Services District, Cambria Community Services District, Cayucos Sanitary District, Ground Squirrel Hollow Community Services District, Heritage Ranch Community Services District, Los Osos Community Services District, Nipomo Community Services District, Oceano Community Services District, San Miguel Community Services District, San Simeon Community Services District, and Templeton Community Services District, or other qualified agencies that may later determine to become a Participating Agency by execution of this Agreement.

1.5 “Authorized District Representative” means the
representative, or alternate, elected or appointed by the Authorized Districts to represent the Authorized Districts’ interests as a member of the IWMA regional agency pursuant to Section 40977 of the Public Resources Code.

1.6 “Board” means the Board of Directors of the Authority

1.7 “CalRecycle” means the California Department of Resources Recycling and Recovery.
- 5 -

1.8 “City” means any Participating Agency that is a city, and “Cities” means all of the Participating Agencies that are Cities.

1.9 “Composting Facility” means a facility at which composting is conducted and which produces a product meeting the definition of compost in Public Resources Code (PRC) section 40116. (“Compost” means the product resulting from the controlled biological decomposition of organic wastes that are source separated from the municipal solid waste stream, or which are separated at a centralized facility. “Compost” includes vegetable, yard and wood wastes which are not hazardous waste, and biosolids where combined with other organic materials in a mixture that consists largely of decayed organic matter, and is used for fertilizing and conditioning land.)

1.10 “Executive Director” means the person hired and appointed by the Board as the Authority's chief administrative officer to administer the affairs of the Authority and to implement the policies of the Board.

1.11 “Fiscal Year” means the period commencing on each July 1 and ending on the following June 30.

1.12 “HHW” means household hazardous waste as described in the household hazardous waste element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time.

1.13 “HHWE” means the Household Hazardous Waste Element as required by the Act (Pub. Resources Code, § 40000 et seq.) as that element may be amended from time to time.

1.14 “IWMA” means the Authority as defined herein.

1.15 “IWMA Region” means the jurisdictional territory and boundaries of all Participating Agencies.
- 6 -

1.16 “Joint Facilities” means a materials recovery facility, composting or HHW Facility, or other facility developed for the purpose of complying with requirements established by state legislation or the regulations of CalRecycle, or combination thereof, which is owned by some or all of the Participating Agencies directly, or by the Authority, or by a private entity, or a public agency, for the benefit of some or all of the Participating Agencies.

1.17 “Members” means the Cities who are members of thisregional agency, formed pursuant to Public Resources Code section 40970 et seq, and the one (1) Authorized District Representative pursuant to Public Resources Code section 40977.“MRF” means a “materials recovery facility” which means a permitted solid waste facility where solid wastes or recyclable materials are sorted or separated, by hand or by use of machinery, for the purposes of recycling or composting. (Title 14, Ch. 9, Art. 3, Section 18720, “Definitions.”) "MRF" also means a transfer station which is designed to, and, as a condition of its permit, shall recover for reuse or recycling at least 15 percent of the total volume of material received by the facility. (Pub. Resources Code, § 50000(a)(4).)

1.18 “Participating Agency” or “Participating Agencies” means and shall include the Cities and the Authorized Districts who are signatories to this Agreement, delegating powers to the Authority pursuant to this Agreement, and participating in the governance of the IWMA.

1.19 “NDFE” means a Nondisposal Facility Element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time.

1.20 “Revenue Bonds” means revenue bonds, notes, certificates of participation and any other instruments and evidences of indebtedness issued by - 7 -
the Authority from time to time pursuant to the law or any other applicable law in order to finance the MRF, any Joint Facilities or any Sole Use Facilities.

1.21 “Sole Use Facilities” means an integrated resource recovery facility, performing one or more of the functions of a MRF, composting or HHW Facility which is located within the boundary of the Authority and is owned by one Participating Agency or a private entity, but in all events is operated for the benefit of the residents and/or constituents of the IWMA Region.

1.22 “Solid Waste Landfill” shall have the meaning set forth in Section 40195.1 of the Public Resources Code, as that section may be amended from time to time.

1.23 “SRRE” means a Source Reduction And Recycling Element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time.

SECTION 2. Purpose.

Government Code section 6500 et seq. provides that two or more public agencies by agreement may jointly exercise any power common to the contracting parties.

Public Resources Code section 40977 authorizes a district to be included as a member of a regional agency. Public Resources Code section 40976 authorizes a city or county to enter into a memorandum of understanding with another city, county, or district for the purpose of preparing and implementing source reduction and recycling elements or a countywide integrated waste management plan. It is the intent of the Participating Agencies to utilize these statutory authorizations in this Agreement.
- 8 -
The Participating Agencies enter this Agreement with the intent to operate the Authority in compliance with the requirements of the Act and other state legislation, with a minimum level of staff, addressing those operations and programs that can be most cost-effectively handled at the regional level by maximizing local resources, private sector participation, and contract services provision. The duties and responsibilities of each Participating Agency are described in the applicable adopted plans. The Authority is formed with the purpose and intent of facilitating the development of programs and projects related to waste diversion for the benefits of the residents and/or constituents of the IWMA Region that provide economies of scale without interfering with individual agencies' exercise of power within their own jurisdiction.

SECTION 3. Creation of Authority.

3.1 The Cities hereby re-create and re-establish an authority and public entity to continue to be known as the “San Luis Obispo County Integrated Waste Management Authority,” (hereinafter referred to as the “Authority” or “IWMA”) it being understood that the Board shall be entitled to change the Authority's name from time to time. The Authority shall be a public entity separate from each of the Cities and the Authorized Districts.

3.2 The Authority shall constitute and remain as a regional agency pursuant to Public Resources Code section 40970 et seq. The regional agency shall include one (1) Authorized District Representative as a member pursuant to Public Resources Code section 40977. Said regional agency, and not the Participating Agencies of the regional agency, shall be responsible for compliance with the waste diversion requirements set forth in Public Resources Code, Article 1 of - 9 -
Chapter 6 (commencing with Section 41780). In the event that the regional agency fails to comply with said waste diversion requirements, it is expressly understood and agreed that Section 14 of this Agreement shall provide for indemnification for the benefit of the regional agency and its Participating Agencies as specifically set forth therein.

3.3 The assets, rights, debts, liabilities, and obligations of the Authority shall not constitute assets, rights, debts, liabilities, or obligations of any of the Participating Agencies. However, nothing in this Agreement shall prevent any Participating Agency from separately contracting for, or assuming responsibility for, specific debts, liabilities, or obligations of the Authority, provided that both the Board and that Participating Agency approve such contract or assumption in writing.

3.4 This Second Amended and Restated Joint Powers Agreement shall take effect upon its adoption by each of the Cities. The Authorized Districts, and each of them, may elect to participate in the IWMA by execution of this agreement wherein they shall be bound by its terms and conditions. All prior agreements, including the MOA, shall be extinguished upon the execution of this Agreement by the Cities.

SECTION 4. Inclusion of the Authorized Districts.

4.1 This Second Amended and Restated Joint Powers Agreement shall be considered a Memorandum of Understanding between the Cities and the Authorized Districts to allow one (1) representatives of the Authorized Districts to participate in the governance of the IWMA pursuant to Section 40977 of the Public Resources Code. Participation of the Authorized Districts is limited to special - 10 -
districts within San Luis Obispo County that possess solid waste authority. The Authorized District Representative shall have all the governing rights and powers granted to an IWMA City Member. This Second Amended and Restated Joint Powers Agreement shall supersede, replace, and supplant the Memorandum of Agreement executed by and between the Cities, the County, and the Authorized Districts in or around 2001.

4.2 Authorized Districts, collectively, shall appoint or elect one representative and one alternate to represent the Authorized Districts on the IWMA Board of Directors. Authorized District Representative shall be limited to elected or appointed officials of an Authorized District. Said representatives shall represent the collective interests of all Authorized Districts. The selected Authorized District Representative shall serve a defined term, if so determined by the Authorized Districts, orso long as they hold an elected or appointed office with their Participating Agency, or until they resign or are removed prior to the end of their term. The Authorized District Representative alternate shall be entitled to vote on IWMA matters only in the absence of the Authorized District Representative.

4.3 The Authorized Districts, as Participating Agencies, shall have no individual powers and/or authority other than through the Authorized District Representative.

SECTION 5. Term.

The Authority is and remains effective as of the date of this Agreement. It shall continue until dissolved in accordance with Section 15 of this Agreement.

However, in no event shall the Authority be dissolved if its dissolution would - 11 -
conflict with or violate the terms or conditions of any Revenue Bonds or related documentation including, without limitation, indentures, resolutions, and letter of credit agreements.

SECTION 6. Powers.

6.1 The Authority is empowered to acquire, construct, finance, refinance, operate, regulate and maintain a Solid Waste Landfill, transfer station, MRF, composting, HHW, or Joint Facilities and Sole Use Facilities subject, however, to the conditions and restrictions contained in this Agreement. The Authority shall also have the power to plan, study and recommend proper solid waste management consistent with the Act and other legislation and, to the extent permitted by the Act and this Agreement, implement plans approved by the IWMA and the programs specified in the state approved and locally adopted SRREs, the HHWE, the NDFE, and the Countywide or Regional Siting Element for all or any portion of the area included within the IWMA Region. Notwithstanding any other provisions of this Agreement, the Authority shall not acquire, regulate, set fees for, or operate any solid waste landfills, recycling, or composting facilities owned or operated by Participating Agencies without the express written consent of such Participating Agency.

6.2 To the full extent permitted by applicable law, the Authority is authorized, in its own name, to do all acts necessary or convenient for the exercise of such powers that each Member could exercise separately including, without limitation, any and all of the following:
(a) to make and enter into contracts;
(b) to apply for and accept grants, advances and contributions; - 12 -
(c) to contract for the services of engineers, attorneys, accountants, planners, consultants, fiscal agents and other persons and entities;
(d) to make plans and conduct studies;
(e) to acquire, improve, hold, lease and dispose of real and personal property of all types;
(f) to sue and be sued in its own name;
(g) to incur and discharge debts, liabilities and obligations; (h) to establish rates, tolls, tipping fees, other fees, rentals and other charges in connection with the Authority’s facilities identified in Paragraph 6.1 herein, as well as any and all services and programs provided and/or implemented by
the Authority;
(i) to hire agents and employees;
(j) to exercise the power of eminent domain for the acquisition of real and personal property;
(k) to issue Revenue Bonds, grant or bond anticipation notes, or other governmental financing instruments, in
accordance with all applicable laws for the purpose of
raising funds to finance or refinance the acquisition,
construction, improvement, renovation, repair, operation, regulation or maintenance of the facilities identified in Paragraph 6.1 herein or as otherwise deemed necessary or beneficial to the Authority;
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(l) to sell or lease the facilities identified in Paragraph 6.1 herein;
(m) to loan the proceeds of Revenue Bonds to any person or entity to finance or refinance the acquisition, construction, improvement, renovation or repair of the facilities
identified in Paragraph 6.1 herein;
(n) to provide that the holders of Revenue Bonds, whether directly or through a representative such as an indenture trustee, be third party beneficiaries of any of the obligations of any Member to the Authority and to covenant with the holders of any Revenue Bonds on behalf of any such
Member to perform such obligations and comply with any
agreements that Member may have with the Authority;
(o) to prepare and implement plans and programs as deemed necessary and/or beneficial to the Authority in carrying out the purposes of this Agreement;
(p) to provide public education, outreach, and marketing activities in support of diversion and edible food recovery programs;
(q) to enter into memorandums of understanding with other regional agencies, cities, counties, and special districts; (r) to adopt, as authorized by California law, ordinances as are necessary to ensure and oversee compliance with any and all current and future state-mandated legislation and
- 14 -
programs related to solid waste, recycling, and waste
diversion;
(s) to act as the delegate, on behalf of the Participating Agencies, for the responsibilities of compliance, monitoring, reporting, and education of all state-mandated legislation, including, but not limited to the Integrated Waste
Management Act, Assembly Bill 341, Assembly Bill 1826,
and Senate Bill 1383.

6.3 Such powers shall be exercised subject only to the limitations set forth in this Agreement, applicable law, and such restrictions upon the manner of exercising such powers as are imposed by law in the exercise ofsimilar powers.

The Authority hereby designates the City of San Luis Obispo as the Member required to be designated by Section 6509 of the California Government Code.

Should the Participating Agencies desire to designate an alternative agency for the purposes of Section 6509, such new designation may be changed by resolution of the Participating Agencies without need for an amendment to this Agreement.

6.4 This Agreement shall not limit the ability of the Participating Agencies to plan, administer, implement, and otherwise conduct waste management and other related local programs as deemed appropriate by the agency and consistent with the purpose and intent of this Agreement.

SECTION 7. Expressed Limitation of Powers.

The Authority’s power to adopt, impose, implement, and/or comply with regulations and ordinances is expressly limited to state-mandated legislation and - 15 -
regulations related to solid waste, recycling, organic waste, and waste diversion.

The Authority shall establish a budget policy requiring Board consideration of the minimum work required to comply with state mandates and regulations in the most demonstrably cost-effective way possible. Said policy shall not preclude other requirements such as Board consideration of the equitable distribution of services throughout the IWMA Region and program enhancements that are funded by grant revenues and/or reimbursements from Participating Agencies.

Additionally, the IWMA shall establish a purchasing policy with a similar provision when preparing scopes of work for consultants and independent contractors who are engaged in implementing the Authority’s projects and programs.

Notwithstanding the foregoing, all existing IWMA ordinances, rules, and regulations, whether or not mandated by the state, shall remain in full force and effect and not subject to this limitation of power unless otherwise determined by the Board.

SECTION 8. Boundaries.

The boundaries of the Authority shall be the boundaries of the Cities and the Authorized Districts identified herein as the IWMA Region. In the event a Participating Agency withdraws from the Authority, the boundaries shall be modified to exclude the area of the withdrawing agency. In the event a qualified city or district joins the Authority, the boundaries shall be modified to include the area of the joining Participating Agency. Section 8 shall not prevent the Authority’s use and/or operation of facilities outside of its boundaries within the County of San Luis Obispo.
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SECTION 9. Organization.

9.1 The Board. The Authority shall be governed by the Board, which shall exercise or oversee the exercise of all powers and authority on behalf of the Authority.

9.2 Participating Agencies.
a) Cities. City membership in the Authority shall be
voluntary, but only the cities incorporated in the
County of San Luis Obispo presently or in the future,
are declared eligible for membership in the Authority
as a regional agency. City representatives to the
Authority shall consist of one (1) member from the
governing body of each incorporated City within the
boundaries of the County of San Luis Obispo which is
a party to this Agreement. The Cities may elect to
have an alternate member(s) in addition to any
official member, but said alternate shall be an elected or appointed official and shall be able to vote only in the absence of the official representative.
b) Authorized Districts. The Authorized Districts shall be collectively represented on the Board by one (1)
representative and one (1) alternate elected or
appointed by and among themselves. The Authorized
District Representative shall have all rights, power,
and authority granted to a City representative. The
Authorized District alternate shall be elected or
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appointed officials and entitled to vote only in the
absence of the official Authorized District
Representative.
c) Representatives of the shall be appointed to serve on the Board in accordance with procedures established
by each of the governing bodies of their respective
agencies, except that the Authorized District
Representative and alternate shall be elected or
appointed pursuant to Section 4. Representatives
shall serve so long as they hold office with their
member agency, until they shall resign or are
removed by a majority vote of their member agency,
or pursuant to a set term established by their
member agency. Vacancies among representatives or
alternates shall be filled in the same manner as the
first appointment.
d) Designation of the official representative or
alternate(s), or changes thereto, shall be transmitted
in writing to the Executive Director of the Authority
by the appointing agency.
e) In addition to the incorporated Cities and Authorized Districts presently a party to this Agreement, any
other city or qualified special district which may
desire to participate in the activities of the Authority may do so by executing this Agreement without prior
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approval or ratification of the named parties to this
Agreement and shall thereafter be governed by all
the terms and provisions of this Agreement as of the
date of execution.
f) Membership and/or participation of any Participating Agency shall be contingent upon the execution of this
Second Amended and Restated Joint Powers
Agreement, as same may be further amended from
time to time, with no requirement to execute the
Original JPA or any prior amendments thereto.

9.3 Principal Office. The principal office of the Authority shall be located at 870 Osos Street, San Luis Obispo, CA 93401. The Board may change that principal office upon giving at least 15 days' notice to each Participating Agency and to CalRecycle.

9.4 Officers.
a) The officers of the Board shall consist of a President and Vice President elected for a term of one year by
a majority vote of the Board
b) Both the President and Vice President of the Board
shall be elected at the last meeting preceding July of
each year.
c) The officers shall serve until their successors are
elected.
d) The duties of the officers shall be as follows:

1. President
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a) Shall preside over all meetings of the
Board.
b) Shall appoint all ad hoc committees
subject to ratification by the Board.
c) Shall be an ex-officio member of all
committees.
d) Shall execute all contracts and legal
documents on behalf of the
Authority except those that have
been delegated to the Executive
Director through purchasing policies
or other actions of the Board of
Directors.

2. Vice President
a) Shall serve as President pro-tem in
the absence of the President.
b) Shall give whatever aid necessary to
the President.
c) Shall be an ex-officio member of all
committees.
d) In the event of a vacancy occurring
in the office of either the President
or Vice President upon said officer's
death, resignation, removal or
his/her ceasing to be an official
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representative of a member agency,
such vacancy will be filled by
majority vote of the Board, the
officer elected to serve for the
balance of the unexpired term.

9.5 Executive Director. The Board shall employ or contract for the services of a general manager (the “Executive Director”) who shall be the chief administrative officer of the Authority. The Authority shall select a qualified Executive Director using professional personnel standards and an open competitive process. The Executive Director shall plan, organize and direct the administration and operations of the Authority, either directly or by means of delegation to IWMA staff, shall advise the Board on policy matters, shall recommend an administrative structure to the Board, shall hire and discharge administrative staff, shall develop and recommend budgets, shall reply to communications on behalf of the Authority, shall approve payments of amounts duly authorized by the Board, shall implement Board policy, shall carry out such other duties that may be assigned to the Executive Director by the Board from time to time, and shall attend meetings of the Board and committees as directed.

9.6 Committees.
a) Committees, subcommittees, and advisory
committees may be established as the Board may
deem appropriate.
b) Membership on “ad-hoc” policy committees shall be
at the discretion of the President, subject to
ratification by the Board, and consisting of less than
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a quorum of the Board. Nothing herein shall be
construed to limit membership on these aforesaid
committees to officials of the member agencies. The
President may appoint any individual deemed
qualified to serve on a committee.
c) Standing Committees shall include an Executive
Committee and other committees as established by
the Board. The composition and bylaws of the
standing committees shall be established by the
Board by resolution. All Standing Committee
meetings shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the
California Government Code) and other applicable
laws of the State of California.

SECTION 10. Meetings of the Board.Notice of Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California.

10.2 Regular Meetings. The Board shall hold at least four regular meetings each year. The date upon which, and the hour and place at which, each regular meeting shall be fixed by
resolution of the Board.
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10.3 Special Meetings. Special meetings of the Board may be called in accordance with the provisions of the California
Government Code.

10.4 Notice of Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California.

10.5 Minutes. The Executive Director shall cause minutes of all meetings of the Board and any standing committees of the Board to be kept and shall, after each meeting and approval of the Board, cause a copy of the minutes to be forwarded to each Participating Agency.

10.6 Quorum and Voting. For purposes of conducting business, there shall be present a quorum consisting of a majority of the Board. Each director shall have one vote. No action shall be effective without the affirmative votes of a majority of those present. The Board shall adopt such procedures as are consistent with this Agreement and applicable law and are necessary or helpful in conducting the business of the Authority in an orderly manner.

10.7 Budget. The Cities and the County have entered into a Memorandum of Agreement among the County of San Luis Obispo and the Cities of Arroyo Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and San Luis Obispo for the Establishment and Payment of Landfill Tipping Fee Surcharges To Support The San Luis Obispo Integrated Waste Management Authority (the “MOA”). Pursuant to the MOA, those members of the Authority having jurisdiction over such matters have agreed to establish tipping fee surcharges (the “Tipping Fee Surcharges”) which shall be paid into a Solid Waste Authority—Trust Fund (as defined in the MOA) for the purposes therein. - 23 -
(a) A line item and program budget for the Authority's
operations shall be adopted by the Board for the
ensuing Fiscal Year prior to June 30 of each year. All
costs incurred by the Authority shall be set forth in
the budget and shall be paid out of the solid waste
fund derived from tipping fee surcharges and other
sources as approved by the Board.

The line item and program budget shall be submitted
in draft form to all Participating Agencies for review
and comment prior to adoption.

The line item and program budget shall include
sufficient detail to constitute an operating guideline, the anticipated sources of funds, and the anticipated
expenditures to be made for the operations of the
Authority and the administration, maintenance and
operating costs of the facilities identified in
Paragraph 6.1 herein. Any budget for Sole Use
Facilities shall be maintained separately. Approval of
the line item and program budget by the Board shall
constitute authority for the Executive Director to
expend funds for the purposes outlined in the
approved budget, subject to the availability of funds.
(b) A budget for the acquisition, construction, or
operation of facilities, or for contracting for the
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acquisition, construction, or operation of facilities,
identified in Paragraph 6.1 herein shall be adopted
by the Board before the Authority commits any
acquisition or construction funds or contracts. It
may be amended if and when determined by the
Board. Approval of the budget(s) for the facilities
identified in Paragraph 6.1 herein shall constitute
authority for the Executive Director (or any trustee
or other fiduciary appointed by the Authority) to
receive state or federal grant funds and proceeds of
Revenue Bonds and to expend funds for the
acquisition, construction, or operation of the
facilities identified in Paragraph 6.1 herein.
(c) A budget(s) governing the acquisition, construction, or operation of Sole Use Facilities may be adopted
by the affected Participating Agency or Agencies.

When such budgets are adopted by affected parties,
appropriate accounts shall be established by the
Authority and designated as such participant or
participant’s fund. Disbursement of such funds by
the Authority shall be made only upon receipt of
written authorization from the designated finance
officer of the affected Participating Agency or
Agencies. Receipts and disbursements for the
acquisition or construction of Sole Use Facilities may
- 25 -
also be made directly by the affected Participating
Agency or Agencies, in which case such budgets
shall not be a part of the budget of the Authority.

10.8 Rules of Procedure. The Board shall from time to time, establish written rules and procedures for the conduct of their meetings.

SECTION 11. Joint Operating Fund and Contributions.

The Authority shall have the power to establish a joint operating fund. The fund shall be used to pay all administrative, operating, and other expenses incurred by the Authority. Funding shall be on an enterprise basis or as determined by the Board. All monies in the joint operating fund shall be paid out by the AuditorController / Treasurer for the purposes for which the fund was created upon authorization by the President of the Board and approval by the Executive Director of demands for payment, or as otherwise authorized by resolution of the Board filed with the Auditor-Controller / Treasurer. No Participating Agency shall be obligated to make any contributions of funds to the Authority for facilities to be established in accordance with Section 6.1 or pay any other amounts on behalf of the Authority, other than as required by this Section 11, without that Participating Agency’s consent evidenced by a written instrument signed by a duly authorized representative of that Participating Agency. The Authority shall contract with an independent certified professional accountant to conduct annual fiscal audits as required by applicable statute or legislation and report the results of such audit to the Board.

11.1 Auditor-Controller / Treasurer. The Auditor-Controller / Treasurer of San Luis Obispo County shall be the Auditor- - 26 -
Controller / Treasurer of the Authority. The Auditor-Controller / Treasurer shall preform all responsibilities and obligations as provided in Government Code section 6505.5. To the extent a conflict exists between this Section 11 and the Government Code, the Government Code shall control.

11.2 Notwithstanding Sections 11.1 above, designation of the Auditor-Controller / Treasurer may be changed from time to time by resolution of the Board without necessitating
amendment to this Agreement.

SECTION 12. Records and Accounts.

This Section and Section 11 are intended to ensure strict accountability of all funds of the Authority and to provide accurate reporting of receipts and disbursements of such funds. The Authority shall maintain accurate and correct books of account, showing in detail the costs and expenses of any service or acquisition and construction and the maintenance, operation, regulation and administration of any service or Joint Facilities or Sole Use Facilities, and all financial transactions of the Participating Agencies relating to any service or Joint Facilities or Sole Use Facilities. Books and records shall be established and maintained in accordance with generally accepted accounting principles promulgated by the California State Controller's Office and the Governmental Accounting Standards Board. The books of account shall correctly show any receipts and any costs, expenses, or charges to be paid by all or any of the Participating Agencies. The books of account shall be open to inspection at all times by a representative or agent of any of the Participating Agencies. In addition, if required by any resolution authorizing the - 27 -
issuance of Revenue Bonds, the Authority shall maintain appropriate books, records, accounts and files relating to each project as required by such resolution which shall be open to inspection by holders of Revenue Bonds if and to the extent, and in the manner, provided in the resolution.

SECTION 13. Rates and Fees.

The Authority shall be funded by a combination of rates, fees, and other funding mechanisms as allowed by applicable authority. Use of revenue from rates and fees shall not be restricted based upon the funding mechanism. The Authority shall establish and regulate rates and/or tipping fees at facilities within the County of San Luis Obispo, such as landfills or other collection sites, for (1) the operation, acquisition, construction, repair, and maintenance of new and existing facilities; (2) the implementation of state legislation and regulations; (3) the operation of programs, education, outreach, monitoring and enforcement efforts; and (4) the preparation, adoption, and implementation a regional management plan.

The Authority may impose fees in amounts sufficient for (1) the implementation of state legislation and supporting programs; (2) education outreach, monitoring, reporting and compliance efforts; (3) the preparation, adoption, and implementation of a regional management plan; and (4) any other purposes as provided for by this Agreement. Revenue generation may include fees imposed on “Haulers” (defined as companies with an agreement with a governmental entity for the collection of solid waste, recyclables, or green waste in San Luis - 28 -
Obispo County), assessments, or any other funding mechanism as allowed by applicable authority. Rates and fees shall be set or modified by resolution only.

Prior to the Authority increasing rates or fees, or imposing new rates or fees, the Authority shall provide the Participating Agencies with all necessary facts, data, information and analyses related to justification and/or explanation of the proposed rates and fees that meet all applicable legal requirements to support their adoption. The Authority shall coordinate with the Participating Agency managers in this regard to ensure the facts, data, information and analyses provided by the Authority is adequate to enable the Participating Agencies to implement the Authority’s proposed rates and fees through the Proposition 218 process, if deemed applicable to a Participating Agency by that Agency; however, determinations regarding the application of Proposition 218 to any proposed increased rate or fee shall be made solely by each Participating Agency with no Authority representations of any kind.

The Authority shall establish a rate and/or fee setting policy which shall govern the obligations of the Authority to its Participating Agencies in the implementation of any new or increased rates or fees.

SECTION 14. Failure to Meet Waste Stream Requirements.

The Authority shall be entitled to cause the waste streams of each Participating Agency to be monitored, pursuant to procedures approved by the Board, in order to determine whether state waste diversion requirements are being met. If the waste stream diversion of any Participating Agency fails to meet any such requirements, including but not limited to taking all actions necessary to comply - 29 -
with state mandates, that Participating Agency shall be solely responsible for any and all resulting liabilities, damages, fines, criminal and civil sanctions, and costs and expenses. That Participating Agency shall also indemnify and hold the Authority and the other Participating Agencies harmless from and against any and all liabilities, damages, fines, sanctions, costs and expenses that are incurred as a result of the violation or a claimed violation including, without limitation, all fees and costs of legal counsel. If two or more Participating Agencies are responsible for a failure to meet any such requirements or are claimed to have violated any such requirements, the Participating Agencies responsible for the violations or which are the subject of such claims shall be responsible to, and shall indemnify, the Authority and the other Participating Agencies in proportion to their relative responsibility for the violations or claimed violations. Upon notification of any such violation or claim, the Participating Agency or Agencies shall take such prompt, corrective action as is necessary to meet the requirements. Nothing in this Section shall preclude one or more Participating Agencies or the Authority from imposing or establishing additional incentives to meet waste diversion requirements.

SECTION 15. Withdrawal and Dissolution.

15.1 The parties to this Agreement pledge full cooperation and agree to assign representatives to serve as official appointed representatives of the Authority or any committee or
subcommittee thereof who shall act for and on behalf of their Participating Agency in any or all matters which shall come - 30 -
before the Authority, subject to any necessary approval of their acts by the governing bodies of the Participating Agencies.

15.2 Any party to this Agreement may withdraw from the Authority, upon providing six (6) months’ prior written notice, and terminate its participation in this Agreement by resolution of its governing body. The withdrawal of the Participating Agency shall have no effect on the continuance of this Agreement among the remaining Participating Agencies, and the
Agreement shall remain in full force and effect with respect to the remaining Participating Agencies. No withdrawal shall become effective until six (6) months after receipt of the written notice by the Authority.

15.3 A Participating Agency which has withdrawn from the Authority shall not be liable for the payment of further contributions falling due beyond the date of withdrawal and shall have no right to reimbursement of any monies previously paid to the Authority. The Authority may authorize a reimbursement if in its judgment such reimbursement is fair and equitable and can be done without jeopardy to the operation of the Authority. If any Participating Agency fails to pay a required contribution, as determined by the Board, that Participating Agency shall be provided with a sixty (60) day written notice and an opportunity to cure. If the Board determines that the Participating Agency has failed to cure or negotiate a cure within sixty (60) days following delivery of the written notice shall be deemed a voluntary withdrawal from the Authority.
- 31 -

15.4 The Authority may be dissolved at any time and this Agreement terminated by a joint agreement duly-approved and executed by a majority of the Members which are parties hereto. Said termination agreement shall provide for the orderly payment of all outstanding debts and obligations and for the return of any surplus funds of the Authority in proportion to the contributions made by the Participating Agencies. In the event the Authority is dissolved, the individual Participating Agencies shall be responsible for complying with the requirements of the Act as included in the approved SRREs, HHWE, NDFE, Countywide or Regional Siting Element and Integrated Waste Management Plan in addition to compliance with all waste management related legislation.

SECTION 16. Amendments Including Termination.

This Agreement may only be amended or terminated by a written instrument executed by a majority of the Members and meeting the requirements imposed by the terms or conditions of all Revenue Bonds and related documentation including, without limitation, indentures, resolutions, and letter of credit agreements. Notwithstanding the foregoing, no amendment or termination shall require any Participating Agency to contribute any funds to the Authority or become directly or contingently liable for any debts, liabilities or obligations of the Authority without the consent of that agency evidenced in a written instrument signed by a duly authorized representative of that Participating Agency.
- 32 -
SECTION 17. Filing with the Secretary of State.

The Secretary shall file all required notices with the Secretary of State in accordance with California Government Code sections 6503.5 and 53051 SECTION 18. Notices.

All notices which any Participating Agency of the Authority may wish to give in connection with this Agreement shall be in writing and shall be served by personal delivery, by electronic mail, or by US mail addressed to the Participating Agency, or Participating Agencies, or the Authority at its principal office, or to such other address as the Authority or Participating Agency or Participating Agencies may designate from time to time by written notice given in the manner specified in this Section. Service of notice pursuant to this Section shall be deemed complete on the day of service by personal delivery (but 24 hours after such delivery in the case of notices of special meetings of the Board), two days after mailing if deposited in the United States mail, or in 24 hours if provided by electronic mail.

SECTION 19. Successors and Assigns.

This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the Participating Agencies. However, no Participating Agency shall assign any of its rights under this Agreement except to a duly formed public entity organized and existing under the laws of the State of California approved by a majority of the voting Directors who do not represent the assigning Participating Agency. No assignment shall be effective unless and until the Authority, the Participating Agencies, and the proposed assignee comply with all then applicable requirements of law relating to changes in the composition of - 33 -
entities such as the Authority if and when they have Revenue Bonds outstanding and with the terms and conditions of all Revenue Bonds and related documentation including, without limitation, indentures, resolutions and letter of credit agreements.

SECTION 20. Severability
Should any part, term, sentence, or provision of this Agreement be decided by a final judgment of a court or arbitrator to be illegal or in conflict with any law of the State of California or otherwise be unenforceable or ineffectual, the validity of its remaining parts, terms, sentences, and provisions shall not be affected and the Participating Agencies represent that they would have adopted this Agreement even without the ineffectual or non-valid provision(s).

SECTION 21. Section Headings.

All section headings contained in this Agreement are for convenience and reference. They are not intended to define or limit the scope of any provision of this Agreement.

SECTION 22. Effective Date.

This Agreement shall take effect upon its execution by all Members, pursuant to resolutions of such governing bodies authorizing such execution and shall remain in full force and effect until dissolved pursuant to the provisions herein. This Agreement may be executed in counterparts which together shall constitute a single agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first hereinabove written.
- 1 -

PARTICIPATING AGENCIES
CITIES
Arroyo Grande
Atascadero
El Paso de Robles
Grover Beach
Morro Bay
Pismo Beach
San Luis Obispo

AUTHORIZED DISTRICTS
Avila Beach CSD
California Valley CSD
Cambria CSD
Cayucos Sanitary District
Ground Squirrel Hollow CSD
Heritage Ranch CSD
Los Osos CSD
Nipomo CSD
Oceano CSD
San Miguel CSD
San Simeon CSD
Templeton CSD
Agenda Item No. 9

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Gabriel Munoz-Morris, Senior Engineer
SUBJECT: Quitclaim of Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, to the California Department of Transportation

RECOMMENDATION
Approve a quitclaim deed of Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, and authorize the Mayor to execute the quitclaim deed on behalf of the City.

BACKGROUND
The California Department of Transportation District 5 (Caltrans) has requested that the City of Grover Beach execute a quitclaim deed for Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, as filed on October 14, 2021 as File No. 2021069898, per the requirements of Section 83 of California Streets and Highway Code. Section 83 of the California Streets and Highway Code states that any public street or highway or portion thereof which is within the boundaries of a state highway shall constitute a part of the right of way of such state highway without compensation being paid therefor, and Caltrans shall have jurisdiction thereover and responsibility for the maintenance thereof.

Staff has determined that the parcel in question is within the boundaries of State Highway 101 on the north side of El Camino Real approximately halfway between the intersections of North Oak Park Boulevard and North 12th Street and thus within the boundaries of a state highway. The City has no interest in the subject parcel and does not currently have, or anticipate the need for, City facilities on the parcel. As a result, staff recommends Council approval of the quitclaim deed.

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

ALTERNATIVES
The Council has the following alternatives to consider:

1. Approve a quitclaim deed of Parcel 12434-1 of State Highway Map Book 6, Pages 99 to 102, to the California Department of Transportation and authorize the Mayor to execute the quitclaim deed on behalf of the City; or

2. Provide staff with alternate direction.

Staff Report: Quitclaim of Parcel 12434-1 to Caltrans Page 2 June 27, 2022

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

Attachments

1. Quitclaim Deed for Parcel 12434-1

2. State Highway Map Book 6 Pages
After Recording Return To:

Department of Transportation – R/W
50 Higuera Street
San Luis Obispo, CA 93401-5415
STATE BUSINESS – FREE
This document presented for recording
pursuant to Govt. Code Section 27383.

Documentary Transfer Tax: No Tax Due (Gov. Code
27383)

CALIFORNIA DEPARTMENT OF TRANSPORTATION
BY:

Signature of Declarant
Space above this line for Recorder’s Use
Attachment 1 - 12434-1_Quitclaim_Deed_Grover_Beach.docx 03/2020
QUITCLAIM DEED District County Route Postmile Number
5 SLO 101 14.85 12434-1
The City of Grover Beach, a body corporate and politic, hereinafter called GRANTOR, hereby releases and quitclaims to the State of California, Department of Transportation, hereinafter called STATE, all right, title and interest in and to all that real property in the City of Grover Beach, County of San Luis Obispo, State of California, described as follows:

Parcel 12434-1, as shown on the Right of Way map filed October 14, 2021 as File No. 2021069898, in State Highway Map Book 6, pages 99 through 102, inclusive This quitclaim deed is made for the purpose of a freeway and the undersigned hereby releases and relinquishes to the STATE any and all abutter’s rights of access, appurtenant to the remaining property in which the undersigned has some right, title or interest, in and to the freeway.

Attachment 1
Number
12434-1
Attachment 1 - 12434-1_Quitclaim_Deed_Grover_Beach.docx 03/2020
The GRANTOR further understands that the present intention of the STATE is to construct and maintain a public highway on the lands hereby conveyed and the GRANTOR, for itself and its successors and assigns, hereby waives any damages to GRANTOR’s contiguous remaining property arising from the conveyance herein and as set forth in California Code of Civil Procedure section 1263.420 (“Damage to the remainder”). The manner and use of the subject property deeded by GRANTOR as defined by the STATE is a state highway to be constructed, operated, and maintained consistent with the state Department of Transportation’s standards and policies.

Dated: City of Grover Beach
Jeff Lee
Mayor
This is to certify that the State of California, acting by and through the Department of Transportation (according to Section 27281 of the Government Code), accepts for public purposes the real property described in this deed and consents to its recordation.

Dated By
Director of Transportation
By
Attorney in Fact
Attachment 2

STATE OF CALIFORNIA

CALIFORNIA STATE TRANSPORTATION AGENCY

DEPARTMENT OF TRANSPORTATION

RELINQUISHMENT MAP
Relinquishment Nos. 11788 & 11789

STATE OF CALIFORNIA

CALIFORNIA STATE TRANSPORTATION AGENCY

DEPARTMENT OF TRANSPORTATION

RELINQUISHMENT MAP
Relinquishment Nos. 11788 & 11789

STATE OF CALIFORNIA

CALIFORNIA STATE TRANSPORTATION AGENCY

DEPARTMENT OF TRANSPORTATION

RELINQUISHMENT MAP
Relinquishment Nos. 11788 & 11789
Agenda Item No. 10

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, CIP Manager
SUBJECT: Award of Construction Contract for Measure K-14 Street Improvements (CIP 2295-14 and 2274 - Nacimiento Avenue, Owens Court, Mono Court, Angello Terrace, Ocean View Avenue, South 7th Street and Trouville Avenue) and Sidewalk Infill Project

RECOMMENDATION
Award the contract for construction of CIP 2295-14 and CIP 2274 as part of the Measure K-14 Street Rehabilitation Program to Granite Construction Company in the amount of $2,327,327 for the Base Bid; authorize the City Manager to sign and affirm construction and construction management change orders up to an aggregate of $230,000; and authorize the Mayor to execute the contract on behalf of the City.

BACKGROUND
The Council identified Street Improvements as one of the Major City Goals for FY 2021-23. Voters approved Measure K-14 in November 2014 which authorizes the sale of up to $48 million in bond funds for repair of residential streets. The Council issued the first $13 million in bond funding in 2015 and 2016 and the Council approved another $15 million in bond funding in 2017. The first 13 projects funded by Measure K-14 are complete and have provided comprehensive maintenance and repair of nearly 240 city blocks which represents over 60% of all local city streets.

The next Measure K-14 street project is CIP 2295-14 which includes a total of 24 blocks of street rehabilitation including Nacimiento Avenue, Mono Court, Owens Court, Angello Terrace, Ocean View Avenue (4th Street to Charles), Trouville Avenue (4th Street to 10th Street), South 7th Street (Long Branch Avenue to Seabright) and South 7th Street (Trouville Avenue to Mentone Avenue).

The City hired design consultant Cannon Corporation earlier this year to develop the project bid documents which depict the street improvements and mandated accessibility upgrades.

Bids for CIP 2295-14 and 2274 were opened on June 15, 2022 and the City received four bids ranging from $2,327,327 to $3,045,999 compared with the Engineer’s Estimate of approximately $2,400,000. The lowest responsive and responsible bidder is Granite Construction Company from Santa Barbara with a bid of $2,327,327. Staff has completed a review of Granite Construction’s qualifications and capability to complete the project and is recommending the Council award the construction contract to the firm. Pending the Council’s award of construction contract, preliminary construction on this project is expected to begin in August 2022. The actual project schedule will be determined following award of the construction contract.

Staff Report: Award of Construction Contract Measure K-14 (CIP 2295-14 and CIP 2274) Page 2 June 27, 2022

FISCAL IMPACT
This project is funded primarily with Measure K-14 funds. The sidewalk infill work is funded with $50,000 from Gas Tax funds as part of the new sidewalk incentive program where affected residents could contact the City and fund 50% of the cost of sidewalk infill in front of their home with the City funding the other 50% with Gas Tax funds. Eight properties are participating in this program as part of this project. $40,000 from the Water Fund is included for targeted water improvements including hydrant improvements. The total project cost includes the lowest bid plus contingency as identified above for a total of $2,557,327. Staff is recommending the Council award to Granite Construction Company in the amount of $2,327,327 and authorize the City Manager to approve the construction contract and contract change orders, if necessary, up to an additional $230,000.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Award the contract for construction of CIP 2295-14 and CIP 2274 as part of the Measure K-14 Street Rehabilitation Program to Granite Construction Company in the amount of $2,327,327 for the Base Bid; authorize the City Manager to sign and affirm construction and construction management change orders up to an aggregate of $230,000 and authorize the Mayor to execute the contract on behalf of the City; or

2. Delay award of the project and provide additional direction to staff; or

3. Reject all bids, modify the project, and re-advertise for bids as soon as possible.

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

Attachments

1. Bid results

2. Map of streets included in CIP 2295-14
Bid Opening Date: Wednesday, June 15, 2022 @ 2:00 p.m.

Bids for: Measure K‐14 Street Rehabiliation and Repair Project, CIP 2295‐14 Sealed Bids Received from:

No. Company Name & Address Total Base Bid
(Page 7)
1 SOUZA CONSTRUCTION P.O. Box 3810 San Luis Obispo, CA 93403 $2,337,585.00 2 S. CHAVES 11545 Los Osos Valley Rd. Ste. C‐3 San Luis Obispo, CA 93405 $2,667,482.00 3 GRANITE CONSTRUCTION CO. P.O. Box 6744 Santa Barbara, CA 93160 $2,327,327.00 4 PAPICH CONSTRUCTION INC. 398 Sunrise Terrace Arroyo Grande, CA 93420 $3,045,999.00
5 6
7 *Bid results are subject to verification by engineering.

City of Grover Beach Bid Opening Results
6/15/2022 1 of 1
Attachment 1
Project #2295-14
Project identified by City Council 7/20/2020
& 4-12-21
Design and Construction schedule TBD
STREET LIST:

1. Trouville Avenue, South 4th Street—South
10th Street

2. South 7th Street, Longbranch Avenue—
Seabright Avenue

3. South 7th Street, Trouville Avenue—
Mentone Avenue

4. Ocean View Avenue—4th to Charles

5. Nacimiento Avenue

6. Mono Court

7. Owens Court

8. Margarita

9. Angello Terrace
Attachment 2
Agenda Item No. 11

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, CIP Manager
SUBJECT: West Grand Avenue Streetscape 4th-8th Street (CIP 2287): Award of Professional Design Engineering Services

RECOMMENDATION
Approve a Consulting Services Agreement with BKF Engineers for design phase services, bidding phase services, and post-design services during construction associated with the West Grand Avenue Streetscape Design Project (CIP 2287); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $40,000.

BACKGROUND
A priority for the City is improving the West Grand Avenue corridor which is the primary commercial corridor in Grover Beach. West Grand Avenue enhancements carried out previously have included work from Highway 1 west to the beachfront area at the City limits and from 2nd to 4th Street and 8th to 11th Street. These improvements have included landscaped medians, street trees, corner ramps and streetlights consistent with the West Grand Avenue Master Plan.

On October 12, 2021, Council affirmed the direction to proceed with the Capital Improvement Program Project 2287 (CIP 2287), West Grand Avenue Streetscape Project, in FY 2022-23 given the significant redevelopment opportunities along this section of the street from 4th to 8th Streets.

In addition to pavement rehabilitation, this project will involve streetscape design elements using the same concepts developed in previous phases which include landscaped medians, street trees, updated accessible corner ramps, street furniture and pedestrian level lighting with additional focus on bike lanes and safety enhancements.

In April 2022, staff reached out to firms on the City’s established short list of on-call consulting firms for Street and Roadway Design consultants. The firms that provided proposals for this design work are BKF Engineers, RICK Engineering and Cannon Corporation. A proposal review committee thoroughly evaluated and ranked the proposals based on the City’s reviewing and scoring process. Staff followed up with meetings with the selected design team to discuss items in the proposal. Based on the firm’s qualifications presented within their proposal, their experience with similar scope projects, and the quality of the proposal, the proposal review committee selected BKF Engineers as the most qualified and responsive firm for this project.

FISCAL IMPACT
The costs for the design consulting services for this project are estimated to be $236,284. This work is funded in the adopted CIP and budget for FY 2022-23 which allocates $315,000 for design work and a total of $3,015,000 for design and construction. $2,035,000 of this funding is allocated Staff Report: West Grand Avenue Streetscape (CIP 2287) Page 2 June 27, 2022
from the General Fund, however the City subsequently applied for regional grant funds that could offset the General Fund contribution if the City is awarded the grant. San Luis Obispo Council of Governments is administering the grant funds and expects to notify the City in late summer regarding approval and receipt of these potential funds.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Approve a Consulting Services Agreement with BKF Engineers for design phase services, bidding phase services, and post-design services during construction associated with the West Grand Avenue Streetscape Design Project (CIP 2287); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $40,000; or

2. Provide staff with additional direction

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

Attachments

1. BFK Engineers Scope and Cost Proposal
April 20, 2022 (rev. 5/23/22)

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PROJECT TEAM AND RELEVANT EXPERIENCE
We recognize this opportunity comes to BKF based on our prequalification from the on-call process and our statement of qualifications. We would like to highlight experience that specifically relates to this project and supports the particular team we assembled.

Our team includes:

Firma Consultants – Firma is a local design and planning firm that is also on the City’s on-call list. Firma was chosen to be a part of the BKF team because of their downtown streetscape experience such as Garden Street in downtown San Luis Obispo, downtown renovations such as the Agrarian Hotel in Arroyo Grande, and history with Grover Beach including the Dune Boardwalk Restoration, Grover Beach Lodge, Mentone Park landscape improvements, and the design of the City of Grover Beach gateway/entrance signage.

Earth Systems Pacific – Earth Systems Pacific has worked on numerous projects with BKF. With this longstanding relationship, and as a preferred local consultant for many, Earth Systems was an easy choice. We know they will work with us to provide the necessary geotechnical information, with the basis of local knowledge.

Bess Test Labs – Bess Test Labs has worked on numerous projects with BKF. We appreciate their ability to work on challenging projects in highly trafficked areas. They are able to make decisions in the field to be able to provide us with the information needed. This flexibility is valuable especially when traffic lanes are closed and there is limited time for this field exploration.

Aerotech Mapping – Aerotech Mapping is our aerial company for this project.

BKF Engineers’ experience with downtown, urban, streetscape design: With much of our experience in the San Francisco Bay Area, most of our projects are in a downtown or urban setting. Streetscape designs often include the same elements that will be part of the West Grand Avenue project. See attached for a few project highlights for:

East Side Connect – Included bulb-outs, revitalizing an old street with new street furniture, decorative street lights, decorative pavement (stamped thermoplastic on asphalt), and pavement maintenance. We identified areas with older overlays that could be ground down and resurfaced to improve roadway cross slopes.

Microsurfacing was used to limit the cost and still provide a very durable pavement surface.

Bay Meadows Development – Included bulb-outs, decorative pavement (stamped colored concrete), decorative street lighting, and street furniture. While this created a new neighborhood, there were also interfaces with adjacent neighborhoods and improvements to high trafficked roadways. Adding decorative concrete through a very busy intersection required multiple stages and temporary plating.

Laurel Street Improvements – Included bulb-outs, decorative pavement (pavers on concrete), decorative street lighting, and street furniture. While this is an older project, it is the quintessential catalyst project as it transformed a non-descript quiet downtown into a bustling jewel of a downtown.

PROJECT UNDERSTANDING
The project limits are within and immediately adjacent to the City right of way on West Grand Avenue between 4th and 8th Street. The project limits include the intersection of 4th and Grand but does not include the intersection of 8th and Grand. See attached Concept Plan for project limits and anticipated elements.

The Concept Plan is extracted from the West Grand Avenue Master Plan. The intent is to be consistent with April 20, 2022 (rev. 5/23/22)

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the design elements from 8th – 11th and 2nd – 4th, however the City does not want to construct the dyed/colored concrete that is on 8th-11th. Lithocrete (which exists on 2nd – 4th) at the intersections would be the City’s preferred option, however this could be cost prohibitive. The City is looking for engineer’s recommendations for a material that will hold up well.

PROJECT SCOPE:
· The intent of the design is to closely match the design from 2nd-4th and 8th-11th. · The project includes pavement rehabilitation.
· Generally, the improvements involve the pavement surface and structure, center medians, landscape, irrigation, decorative street lighting, street trees and site furnishings such as benches or trash receptacles.
· The traffic light pole on the Northeast corner of 4th and Grand was hit by a vehicle and it has been leaning for quite some time. The City would like to include an evaluation of this pole and determine if it needs to be replaced.
· Timing will be critical for this project. The City would like to have project documents ready to bid the project in November.
· Generally consistent with the West Grand Avenue Master Plan.

PROJECT APPROACH
Consistent with industry standard approach to deliver the work plan tasks listed below and our quality assurance and quality control practices, a few technical examples demonstrate BKF’s approach to meeting the City’s goals of:
- Beautification of the corridor
- Improving safety
- Increasing accessibility
- Maintaining pavement life

BULB-OUT GRADING
Grading of bulb-outs have many critical nuances:
- Maintaining drainage: extending the sidewalk slope which is adverse to the roadway cross slope usually makes drainage along the gutter flowline impossible. Adding curb inlets or drainage through the bulb-out in a trench drain are often pricey and undesirable solutions. Choosing which corners and which streets receive the bulb-outs to locate them at high points avoids this compromise.
- Curb ramp slopes: depending on roadway cross slopes, curb ramps may actually slope back toward the sidewalk, or be too flat to convey surface runoff. Accurately identifying conforms in the street and at the back of walk can better identify conditions that may need creative solutions.

East Side Connect (Old County Road, San Carlos)
Bulb-out with nominal ramp slope and adjacent planter
April 20, 2022 (rev. 5/23/22)

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CURB RAMP GRADING
Using the detailed topographic survey as a base, we will advance the design of the curb ramps, including spot grades and slopes. This will better identify dimensions which helps provide a better bid and reduces risk for change orders. It will also confirm drainage and accessibility.

Generalized: Detailed (example from another project):

DECORATIVE CONCRETE PAVEMENT
We understand the priorities for the decorative pavement at the intersections include:
- Don’t show tire marks
- Does not fade
- No obvious cracking
- Affordable
- Ability for patch repairs
The Lithocrete treatment meets the performance criteria, however it may not be an affordable option.

Also, because of the proprietary nature, patching repairs or trenching may be challenging. In fact, we attempted to contact the “owners” of Lithocrete twice during the preparation of this proposal and did not receive any response. We would expect a single consistent aggregate and mix would be much less expensive than the creative “wave” design further west of the current project. However, the lack of responsiveness is still concerning. Further research of options may be required to achieve similar performance.

Based on information from the Lithocrete website, and the Caltrans Concrete Technology Manual, it is likely the admixture providing the resistance to the alkali-aggregate reaction is also providing the abrasion resistance and does not show tire marks. This may be a lithium mixture, a silica fume, rice hull ash, or a combination. Discussing these potential admixtures and experiences with local concrete suppliers may provide good options that would also allow for the ability to patch repairs and trenching.

April 20, 2022 (rev. 5/23/22)

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TASKS
A strength of BKF Engineers’ approach is flexibility. The following tasks are anticipated as part of delivering a successful project for the City of Grover Beach. We recognize that during project development, slight changes to priorities or tasks are needed. We will continually evaluate and communicate needed changes to the tasks. The following tasks provide a basis for setting expectations for fees and schedule. We are happy to discuss changes to these tasks, particularly considering optional additional services. We have also included an exhibit showing the project limits and general summary of the project scope. Changes to these assumptions may also affect fees and schedule, which we anticipate discussing to ensure the City’s objectives are met within the funding and schedule constraints.

A. PROJECT MANAGEMENT AND COORDINATION
• Record keeping and file management.
• Project accounting and monitoring the budget.
• Meet with City staff to review and refine the work program and schedule, identify critical milestones, and determine appropriate paths of communication prior to beginning work.
• Prepare a baseline schedule. An updated schedule will be prepared as needed. • Conduct periodic project meeting (virtual and/or in-person coordination meetings) with the City to discuss progress. Meeting agenda and minutes will be prepared, as needed. • Quality assurance and quality control will be managed throughout the project.

B. PRELIMINARY INVESTIGATION
• Meet with City staff to review project requirements, existing information needed, and any utility improvement plans.
• Prepare a topographic survey. The topographic survey will serve as the basemap for design and will start with an aerial survey to provide overall context.

Conventional field work will supplement the aerial to provide detailed ground elevations for conforms at intersection corners and one large driveway replacement.

Surface utilities, trees, tree wells, and other roadway elements will be captured and field checked with aerial topography. Storm drain inlet inverts will be captured during the field check.

A record boundary based on recorded maps will be drafted as part of the basemap.

The basemap will be drawn at 1”=20’ scale. Vertical datum will be NAVD88 or City Datum, if available. Horizontal control will be NAD83 or local control.

Utilities will be drafted in based on as-built and record information provided by the utility companies, along with any historic USA markings and surface features captured during the topographic survey and site walk.

Pothole locations with GPS and ties to aerial topography will allow for this existing utility information to be located on the basemap.
• Visit project site and investigate existing site conditions to identify opportunities, April 20, 2022 (rev. 5/23/22)

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constraints, verify the presence of existing utilities and other conditions, and confirm items shown on topographic survey.
• Review and research data/reference material pertinent to the project, including, but not limited to, record drawings, right-of-way documents, City Pavement Management Report, Standard Provisions, Standard Details, Design Criteria, and codes, ordinances, and policies pertaining to the proposed project design. • Geotechnical exploration will include drilling in ten locations to a maximum depth of 5 feet, measure asphalt and base sections at each location, identify subgrade material, and take subgrade samples in 4 locations for R-value testing. Traffic control in the form of lane closures will also be provided. It is expected that the subgrade soils in Grover Beach are fairly consistent. Therefore, two of the four subgrade samples will be tested for R-values. Laboratory data will then be analyzed, and a report will be prepared with pavement and minor grading recommendations.

A site walk will be performed to identify dig-outs due to likely base failures, and other observations for overall pavement maintenance.

C. UTILITY COORDINATION
Detailed coordination, research, and presentation on the construction documents of all utilities (including City-owned water, wastewater, electrical street lights, and traffic control signals) with all utility companies (above and below ground), including:
· Potholing as necessary (assume budget for 10 potholes). Pothole exhibits will be provided to the potholing contractor to provide clear direction. · Field investigation of each valve box to measure the distance from street grade to the top of the operating nut, and then computing an estimate for the crown of the pipe below existing street grade (recently the City has discovered AC pipe at shallow depths, i.e., depths significantly less than 36-inches).
· Utility relocation coordination conducted in advance of the construction to accommodate the construction.
· Full and complete coordination with utility companies to have them relocate their utilities that are interfering with the features of the design before construction bids are opened.

Coordination would also new meter(s) for the proposed irrigation point(s) of connection.

D. DESIGN DEVELOPMENT AND CONSTRUCTION DOCUMENTS
· Through an engineer’s alternatives analysis, prepare concept design plans to establish basis of design. This will identify roadway improvements including pavement structural design, limits and type of improvements, quantity of street furniture, and street lighting.

The concept design plan will be used to estimate construction cost within the project budget.
· Prepare design development/construction documents that shall include:
— Title Sheet, Legend, and Abbreviation
— Civil Notes and Construction Details
April 20, 2022 (rev. 5/23/22)

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— Demolition Plans
— Street Improvement Plans
— Curb Ramp Detail Plans
— Signing & Striping Plans
— Street Lighting Plans
— Planting Plans
— Irrigation Plans
— Landscape Detail Plans
— Landscape Documentation in compliance with Title 23 Chapter 2.7 — Erosion and Sediment Control Plans and Details
— Engineer’s Opinion of Probable Construction Cost, including strategies for base bid and bid alternatives, if necessary
— Project Technical Specifications
— Documentation of design exceptions
— Documentation of post construction stormwater mitigation measures — Miscellaneous administrative support of City staff (e.g. production of exhibits to support Council agenda items)
• Submit PDF versions of the PS&E at 50% and 100% design stages. • Meet with City staff to review comments on the submittals, as needed. Revise plans, specifications, and cost estimates as necessary to reflect stakeholders’ and City comments and directions, with responses to comments.

Design exceptions shall be submitted to the City by the Engineer for curb ramps that cannot accommodate ADA requirements,
Water and/or sewer utility improvements as provided to the Engineer (these improvements will be developed by the Public Works Department and made available to the Engineer after award of this work),
Implementation of the City’s Post Construction process into the design evaluation, including submittal of the Post Construction supporting documentation to the City for their compliance with Regional Board requirements.

Implementation into the design any Post Construction stormwater mitigation measures to comply with City and/or Regional Board requirements.

Technical specifications that incorporate the City Standards and the 2010 Caltrans Standard Specifications and that are incorporated into the City’s standard front-end construction document (front-end documents will be provided to the Engineer in Microsoft Word format); Plans that incorporate the City Standards and the 2010 Caltrans Standards.

E. BID PHASE SERVICES
• Assist the City, as necessary, in responding to bidder’s inquiries, requests for clarification, and addenda.

F. CONSTRUCTION PHASE SERVICES
April 20, 2022 (rev. 5/23/22)

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• Attend a preconstruction meeting conducted by the City. • Review submittals and respond to Requests for Information (RFI), as necessary, in a timely manner.
• Assist the City to resolve issues during construction, as necessary. • Site visits to resolve issues during construction.

G. POSTCONSTRUCTION
· Prepare record drawings based on contractor markups.

H. ADDITIONAL SERVICES
We can provide additional services, if required. We can modify the base scope and fee to include these services or provide as an amendment at a later date. • Modified Traffic Signal Plans: We assume the replaced detector loops can be located and identified in the signing and striping plans. If more significant changes are needed such as adding pedestrian push button posts, relocating traffic signal poles, changing signal phasing or adding bicycle detection that require a modified traffic signal plan, we can provide this additional service.
• Storm Water Pollution Prevention Plan: We assume a SWPPP, if needed, will be prepared by the contractor. This can be provided as an additional service. • Landscaped Median, Corridor, and Intersection Improvements: Prepare color rendered concept plans. Concepts may illustrate different design themes and/or mixture of planting and pavements. Concepts to be accompanied by image boards with photos of proposed plant material and examples of similar treatments. Additionally, visual simulations can be superimposed over a photo to accompany each plan. • Changes to the construction documents beyond our control, whether during design or during construction.
• Resolved boundary, including review of title reports, surveying existing monuments, setting new monuments, and preparing a record of survey.

West Grand Ave, Grover Beach
BKF Engineers 4/20/2022 (rev. 5/23/2022)
@ $272 @ $237 @ $231 @ $174 @ $325
Task Description hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s 1 Project Management and Coordination
Kick-off Site Meeting, Agenda, Minutes $0 6 $1,422 $0 $0 $0 6 $1,422 Project Schedule, Records, Management $0 24 $5,688 $0 8 $1,392 $0 32 $7,080 Project Meetings $0 32 $7,584 $0 8 $1,392 $0 40 $8,976
Subtotal 0 $0 62 $14,694 0 $0 16 $2,784 0 $0 78 $17,478 2 Preliminary Investigation and Design
Request Existing Documentation $0 2 $474 $0 8 $1,392 $0 10 $1,866 Review Reference Documents $0 2 $474 $0 8 $1,392 $0 10 $1,866 Topographic Survey and Base Map $0 16 $3,792 12 $2,772 48 $8,352 32 $10,400 108 $25,316 Site Review $0 8 $1,896 $0 $0 $0 8 $1,896
Subtotal 0 $0 28 $6,636 12 $2,772 64 $11,136 32 $10,400 136 $30,944 3 Utility Coordination
Potholing Coordination (assume 20 potholes) $0 2 $474 $0 8 $1,392 $0 10 $1,866 Measure Water Valves $0 2 $474 $0 8 $1,392 $0 10 $1,866 Utility Coordination $0 16 $3,792 $0 16 $2,784 $0 32 $6,576 Subtotal 0 $0 20 $4,740 0 $0 32 $5,568 0 $0 52 $10,308
4 Design Development & PS&E
Concept Plan 2 $544 16 $3,792 $0 24 $4,176 $0 42 $8,512 50% PS&E 2 $544 48 $11,376 8 $1,848 160 $27,840 $0 218 $41,608 100% PS&E 2 $474 40 $9,480 12 $2,844 180 $31,320 $0 234 $44,118 Subtotal 6 $1,562 104 $24,648 20 $4,692 364 $63,336 0 $0 494 $94,238 5 Post-Design Services
Bid Phase Services $0 4 $948 2 $462 8 $1,392 $0 14 $2,802 Construction Phase Services $0 24 $5,688 4 $924 32 $5,568 $0 60 $12,180 Record Drawings $0 2 $474 $0 16 $2,784 $0 18 $3,258
Subtotal 0 $0 30 $7,110 6 $1,386 56 $9,744 0 $0 92 $18,240 Reimbursable Expenses $2,200
SUBTOTALS 6 $1,562 244 $57,828 38 $8,850 532 $92,568 32 $10,400 852 $173,408 Subconsultants (including 10% markup)
Firma Consultants (Landscape) $14,520
Earth Systems Pacific (Geotechnical) $12,925
Aerotech Mapping (Aerial Topography) $3,696
Bess Test Labs (Potholing) $29,535
GRAND TOTAL $236,284
Notes: Titles and hours are estimates. We expect to provide resources as needed while the project develops. Office survey staff hours may be interchangeable with engineering staff hours.

BKF Engineers' Personnel and Rates
Project Engineer
BKF Fees
Principal Associate Project Manager Survey Crew
Agenda Item No. 12

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Second Reading and Adoption of an Ordinance Amending Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code to Add Insurance Benefits

RECOMMENDATION
Conduct a public hearing for the second reading and adoption of an Ordinance to amend Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council health benefits.

BACKGROUND:

At the April 11, 2022 Council meeting, Council Member Miller requested scheduling an agenda item to consider increasing the compensation received by the Council given increases in cost of living. The Council concurred with this request and provided direction to staff to schedule this item for an upcoming meeting. The current compensation of $600 per month for Council Members and $750 per month for the directly-elected Mayor was approved on December 4, 2017 and became effective in December 2018 following the November 2018 election. Previously, Council compensation had not been adjusted since 1986 and was the lowest level among the seven cities in San Luis Obispo County.

At the April 25, 2022 Council meeting, the Council received a report on Council compensation which provided the relevant legal requirements, as shown in Attachment 1, and compared stipends, insurance benefits and equipment allowances for other City Councils in the county. The report indicated that the City’s Council stipends are on the low end as compared to other cities in the county and that the City is the only city in the county that does not offer health insurance benefits to Council Members. The Council directed staff to draft an ordinance to increase Council stipends by the maximum allowable amount of 20% (5% for each of four years since the last increase became effective) and to bring back an agenda item for further deliberation of providing health insurance benefits to the Council
At the May 23, 2022 meeting, the Council adopted an Ordinance raising Council Member salaries to $720 per month and the Mayor’s salary to $900 per month. The Council also received a report on health benefits provided to Council Members in other cities in the county and provided staff direction to add health benefits to the Council’s compensation to match the contribution provided to Management and Confidential employees of the City as shown in Attachment 2. At the June 13, 2022 meeting, the Council conducted the first reading, by title only, of the attached Ordinance (Attachment 3) which will codify Council’s direction to provide health benefits coverage to Council Members and their dependents, effective in January 2023 in conjunction with the City’s open enrollment process for health insurance.

Staff Report: Second Reading of an Ordinance Adding Council Health Benefits Page 2 June 27, 2022

FISCAL IMPACT
Adoption of the Ordinance amending the Municipal Code to add health benefits to Council compensation will result in an annual cost increase of $98,400 and a prorated increase of $49,200 for FY 2022-23 assuming all five members of the Council and dependents received such benefits.

This amount would be absorbed in the City’s operating budget.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Conduct a public hearing for the second reading and adopt the Ordinance to amend Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) regarding Council health benefits.; or

2. Provide alternative direction to staff.

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

Attachments

1. Legal References

2. Management & Confidential Employee Group Coverage Contribution Rates

3. Ordinance Amending Chapter 2 (Compensation) of Article II (Administration) of the Grover Beach Municipal Code Include Health Benefits
Compensation for Council Members
Grover Beach Municipal Code Sec. 2201. Compensation of Council Members. Each member of the Council shall receive, as salary, the sum of six hundred dollars ($600) per month and, pursuant to Government Code section 36516.1, as may be amended from time to time, the directly elected Mayor shall receive, as salary, seven hundred and fifty dollars ($750) per month. (Ord. No. 22; Am. Ord. 75-11; Ord. 86-2; Am. Ord. 17-08) Government Code Sec. 36516.
(a) (1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and including three hundred dollars ($300) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including four hundred dollars ($400) per month.
(C) In cities over 50,000 up to and including 75,000 in population, up to and including five hundred dollars ($500) per month.
(D) In cities over 75,000 up to and including 150,000 in population, up to and including six hundred dollars ($600) per month.
(E) In cities over 150,000 up to and including 250,000 in population, up to and including eight hundred dollars ($800) per month.
(F) In cities over 250,000 population, up to and including one thousand dollars ($1,000) per month.
(3) For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.
(c) Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, Attachment 1
committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section.
(f) A city council member may waive any or all of the compensation permitted by this section. (Amended by Stats. 2009, Ch. 332, Sec. 68. Effective January 1, 2010.) Government Code Sec. 36516.1.

A mayor elected pursuant to Sections 34900 to 34904, inclusive, may be provided with compensation in addition to that which he or she receives as a council member. That additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election.

Government Code Sec. 36516.5.

A change in compensation does not apply to a councilman during his term of office; however, the prohibition herein expressed shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of such council becomes eligible for a salary increase by virtue of his beginning a new term of office. (Added by Stats. 1966, 1st Ex. Sess., Ch. 12.)
Attachment 2
ORDINANCE NO. 22-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA, AMENDING CHAPTER 2 (COMPENSATION) OF

ARTICLE II (ADMINISTRATION) BY ADDING SUBSECTION B TO
SECTION 2201
WHEREAS, Grover Beach Municipal Code Article II, Chapter 2 provides for compensation for City Council members; and
WHEREAS, the City of Grover Beach is the only city in the County of San Luis Obispo that does not provide any health insurance benefits for council members; and WHERAS, on May 23, 2022, the City Council approved adding health insurance benefits at the same level of management and confidential employees for City Council members to the City Council’s compensation; and
WHEREAS, California Government Code section 36516(d) provides that any amount paid to council members for health benefits is not included in the determination of salary, provided that city employees have the same benefits available NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Grover Beach as follows:

PART 1: Chapter 2 (Compensation), Section 2201 of Article II (Administration) of the Grover Beach Municipal Code is hereby amended by adding subsection B which reads as follows:

Sec. 2201. Compensation of Council Members. [(A)] Each member of the Council shall receive, as a salary, the sum of seven hundred twenty dollars ($720) per month and, pursuant to Government Code section 36516.1, as may be amended from time to time, the directly elected Mayor shall receive, as a salary, nine hundred dollars ($900) per month.
[(B) Each member of the Council is entitled to participate in the City employee medical insurance policy. The City will pay for the elected official’s participation up to the amount contributed by the City for Management and Confidential employees, except the elected officials shall not receive an opt out amount or cash payment in lieu of coverage.]
PART 2: Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be in violation of the law, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, Attachment 3
Ordinance No. 22-__ Page 2
subdivisions, paragraphs, sentences, clauses or phrases be declared in violation of the law.

PART 3: 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, subsection (A) was adopted by Council on May 23, 2022 and shall become effective consistent with Ordinance 22-04 and the added health insurance benefits for Council members pursuant to this Ordinance shall become effective on January 1, 2023, and 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.

INTRODUCED at a regular meeting of the City Council held ________ 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. 13

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
Bruce Buckingham, Community Development Director
Greg Ray, Public Works Director/City Engineer
David Hale, City Attorney
SUBJECT: Approval of Ground Lease with 5Cities Homeless Coalition for Homeless Housing Facility Use at City-Owned Property at 955 South 4th Street

RECOMMENDATION
Approve a ground lease agreement with 5Cities Homeless Coalition (5CHC) at 955 South 4th Street (APN No. 060-542-014) to develop and operate a homeless housing facility use and authorize the City Manager to finalize and execute the agreement in substantial conformance to the terms in the approved agreement.

BACKGROUND
On March 14, 2022, the Council approved a property acquisition for vacant land at 955 South 4th Street for homeless housing facility use. The Council approved numerous documents including an assignment of Purchase Agreement, Escrow Documents and Instructions, a Purchase Contract, an Agency Use Plan, a Resolution Adopting the Plan, and a Categorical Exemption under the California Environmental Quality Act, (CEQA) Guidelines, Section 15303. Staff consummated and entered into the purchase agreement and the City acquired the subject property. The City used $425,000 in American Rescue Plan Act funds for this purchase which is consistent with the City’s Major City Goal of Housing and Homelessness.

The purpose and intent of the property acquisition was to enter a long-term ground lease with 5CHC to use the property to create a non-congregate temporary housing project 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 and located in the city’s “Emergency Shelter Overlay Zone.” The property is adjacent to the future Central Coast Blue Treatment Facility on Barca Street and the ground lease will include an easement of 28 feet through the property for project utility lines.

During the March 14, 2022, the Council was advised the purchase of the property by the City and entering a long-term ground lease with 5CHC could involve the procedures contained within the Surplus Land Act (“the Act”), Government Code Section 54221. The City Attorney worked with the California Housing and Community Development Department (HCD) to get approval for entering this ground lease with 5CHC without having to comply with the procedural requirements of the Act.

HCD gave the City an approval to enter into this agreement without having to comply with the Act and therefore the City is authorized to enter into this agreement under State law.

Staff Report: Approval of Ground Lease with 5CHC for 955 South 4th Street Page 2 June 27, 2022
Listed below are key provisions of the agreement:
• The ground lease will be entered into for a period of 55-years which is the maximum length for this use allowed under State law. The term of the ground lease cannot be extended beyond the initial 55 years without competitively bidding the tenant which is not possible under the current lease structure.
• 5CHC is still working on the project description and an exact description of the number of units is unavailable currently.
• 5CHC can terminate the agreement within 12 months should it not be able to obtain the necessary governmental permits to construct the project or is unable to obtain the necessary financing for the project.
• Annual rent for the lease shall be $1.00 per year given the community service use provided by 5CHC.
• The project will be built consistent with prevailing wage laws unless an exemption is available to 5CHC
• All taxes, assessments, utility bills and other related costs shall be borne by 5CHC. • 5CHC shall be required to obtain insurance on all improvements constructed on the property.
• 5CHC shall be responsible for all maintenance to the structures, property and adjacent sidewalks and similar public improvements.
• Commencement of construction of the improvements, subject to defined delays, is required within 12 months from the Effective Date of the agreement and all improvements shall be completed within 24 months of the Commencement of Construction. • An easement of 28 feet is reserved as part of the agreement to allow for Central Coast Blue utility lines across the southern boundary of the property with the final width determined through the final design for the Central Coast Blue project and related State requirements.
• 5CHC shall have the option to purchase the property for $1.00 after one year of continuous operation of the facility and before 6 months prior to the end of the ground lease term.

With Council approval of the attached ground lease, City staff and the City Attorney will have completed all necessary steps to allow 5CHC to proceed with the applications for development of the site and necessary building permits. This ground lease will also provide a utility easement sufficient to accommodate the utility line needs of the CCB project related to this parcel. Pending Council approval, staff would return to the Council this fall with consideration of a State Project Homekey grant application to help fund construction of this homeless housing facility.

FISCAL IMPACT
The City has already expended the acquisition cost of $425,000.00 for the subject property and entering this ground lease with 5CHC will have no fiscal impacts to the City.

ALTERNATIVES
The City Council has the following alternatives to consider:

1. Approve entering the attached ground lease for 55-years with 5CHC to develop and operate a homeless housing facility and authorize the City Manager to negotiate and execute all revisions to the attached agreement necessary to finalize in substantial conformance to Attachment 1; or
Staff Report: Approval of Ground Lease with 5CHC for 955 South 4th Street Page 3 June 27, 2022

2. Provide alternative direction to staff.

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

Attachments

1. Ground Lease Agreement
1 GROUND LEASE
This Ground Lease (“Lease”) is dated as of ________, 2022 (the “Effective Date”), by and between the CITY OF GROVER BEACH, a municipal corporation (the “Landlord”), and 5CITIES HOMELESS COALITION, a California nonprofit public benefit corporation (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, located at 955 South 4th Street, in the City of Grover Beach, County of San Luis Obispo, State of California, identified as Assessor Parcel Number 060-542-014, and more particularly described on attached Exhibit “A” (the “Premises”), but excepting the Improvements (defined below) the ownership of which will be retained by Tenant following Tenant’s development of the Improvements, 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 have the meaning set forth in Recital A above; Attachment 1
2 (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, delay of any contractor, sub-contractor, or supplier, delayed receipt of governmental funding for the construction or operation of the Improvements, Tenant’s failure to obtain funding or financing despite good faith efforts to identify and apply for funding or financing sources (which may include, without limitation, loans, grants, donations, and other sources) that include terms that are commercially reasonable and acceptable to Tenant, governmental restrictions, epidemics, quarantine restrictions, litigation that enjoins or otherwise delays construction of the Improvements, the inability to obtain governmental approvals for the development of the Improvements, 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 temporary, transitional, or emergency housing project, 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 3 facilities, improvements, appurtenances, and safety measures necessary or desirable in connection with such a development in the reasonably prudent judgment of the Tenant or as required by Landlord in connection with obtaining entitlements to develop the Improvements.

ARTICLE 1
TERM
Section 1.01. 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 11:59 pm, May 31, 2077, a period of fifty five (55) years (the “Term”).

Section 1.02. Tenant shall have the right to terminate this Lease, without penalty, within twelve (12) months of the Effective Date (the “Due Diligence Period”) if Tenant determines, in its sole and absolute discretion, that Tenant cannot (a) obtain the permits or entitlements for the Initial Improvements required by the City of Grover Beach and any other governmental agency having jurisdiction over the Property or (b) obtain sufficient funding for construction, maintenance, and operation of the Initial Improvements. Tenant shall provide written notice of termination to Landlord pursuant to this Section 1.02 (“Due Diligence Termination Notice”) no later than the expiration of the Due Diligence Period; otherwise, Tenant shall be deemed to have waived its early termination rights related to the Due Diligence Period.

ARTICLE 2
RENT
Section 2.01. Tenant shall pay to Landlord as basic annual rent, without deduction, setoff, prior notice or demand, the sum of One and no/100 Dollars ($1.00) per annum, in advance of the first business day of each year, commencing on the Effective Date and continuing during the Term. Basic rent for the first year or portion of it shall be paid on the Effective Date. Basic rent for any partial year 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. 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 4 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, utility rates and charges including 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.

Landlord shall request that the appropriate governmental authority or utility provider send any and all bills for impositions directly to Tenant at the address Tenant designates.

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 5 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. 6 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 7 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. When Landlord’s prior approval is required pursuant to this Section 4.03, Tenant and Landlord shall cooperate in connection with the adjustment and collection of any insurance recoveries that may be due in the event of loss, and Tenant shall furnish Landlord with such proofs of loss and other instruments as Landlord may reasonably require to recover any proceeds from the applicable insurance policies.

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 twenty percent (20%) of the replacement cost of the Improvements to Tenant, or (b) in case of any particular casualty resulting in a loss payment in excess of twenty percent (20%) of the replacement cost of the Improvements to the Institutional Leasehold Mortgagee holding the first Leasehold Mortgage. 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 8 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; ordinary wear and tear excepted, 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 during the Term.

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 9 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.

Section 7.03. Prevailing Wage. Developer and City acknowledge that the California Prevailing Wage law normally applies to projects where the established rent of public property used for development is less than fair market value. In this case, Landlord and Tenant agree the amount of rent defined within Article 2 for annual payment of one (1) dollar a year is considered less than fair market value and the project would be subject to prevailing wages unless an exemption can be applied.. To the extent that the Project does not qualify for an exemption from California Prevailing Wage Law or is otherwise ruled to be a public work by a determination issued by the Department of Industrial Relations, Tenant acknowledges and agrees that the construction and constructionrelated activities for the Project would be subject to the California Prevailing Wage Law and Tenant would be required to and shall pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. The Parties agree, Tenant may seek an opinion from the Department of Industrial Relations as to whether the project is exempt from prevailing wages or structure the project in such a way to qualify for an exemption.

ARTICLE 8

DAMAGE TO OR DESTRUCTION OF THE IMPROVEMENTS
10 Section 8.01. Except as provided in Section 8.04, 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.

Section 8.04. Notwithstanding anything contained in this Article 8 to the contrary, in the event that the Improvements located on the Premises shall be substantially damaged or destroyed by fire or any other cause, and such damage or destruction occurs during the last five (5) years of the Term, Tenant may, at any time within six (6) months from the date of such damage or destruction, on sixty (60) days' written notice to Landlord of its intention to do so, terminate this Lease. Such option may be exercised by serving such notice on Landlord, without any liability on the part of either party except for the payment of the Rent and all additional sums required to be paid by Tenant under the terms of this Lease up to the date of such termination and full performance by Tenant, at its sole cost and expense, of the work of demolition and removal of the remaining portions of the Improvements located on the Premises so damaged or destroyed and removal of all debris from the Premises; provided, however, that any available insurance proceeds shall be applied, to the extent such insurance proceeds are available for demolition and removal, to payment of the cost of such demolition and removal. For the purposes of this Section 8.04, the Improvements shall be deemed substantially damaged or destroyed if the estimated cost of restoring same as nearly as possible to their value, condition, and character immediately before such damage or destruction is fifty percent (50%) or more of the estimated total replacement cost of the Improvements located on the Premises.

ARTICLE 9

CONDEMNATION
11 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, whether temporary or permanent, 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) Unless the total taking or constructive total taking is sought or committed by Landlord, in which event Landlord shall not receive any of the Condemnation Proceeds, 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.
(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”), provided that if Landlord seeks or commits the taking, Landlord shall not be entitled to any of the Condemnation 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, economically feasible project.
12 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 Term, 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 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, 13 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 Term, to construct the Initial Improvements, to arrange for all utilities to be provided to the Premises (subject to Section 10.05) that are required by 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 (each individually, a “Change” or “Alteration” and 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 prior to submitting any applications for permits, in order to give Landlord an opportunity to determine that such Changes or Alterations will comply with the provisions of this Article, provided that Landlord’s approval shall not be unreasonably withheld and Landlord must approve or reject the plans in writing within thirty (30) days of receipt or such plans shall be deemed approved;
(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 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 14 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. Reserved.

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 construction of the Initial Improvements to be commenced (“Commencement of Construction”) no later than the expiration of the Due Diligence Period 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 twenty-four (24) months following the Commencement of Construction, or such later date as diligent prosecution and pursuance of such construction, subject to Unavoidable Delays, would permit such completion. The Landlord may in its sole discretion extend the Commencement of Construction and/or Completion of Construction date if timely requested by Tenant prior to any pertinent expiration dates related to either event. In the event construction of the Initial Improvements stops or is terminated for a continuous period of more than one hundred eighty (180) 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.

Section 10.05. Landlord shall at Tenant's request grant, convey, or dedicate easements, rights, and rights-of-way on and over the Property to utilities, governmental or quasigovernmental authorities, and other entities that service the Property, including, without limitation, easements for public access, landscape maintenance, adjacent sidewalk maintenance, electricity, gas, telecommunications, and sewer, water, and storm drain purposes to service or use the Property or other property located nearby or adjacent thereto, or to implement required infrastructure improvements (“Easements”).

Section 10.06. The Lease shall be entered into with Tenant subject to an easement that Landlord shall grant to the Central Coast Blue Regional Recycled Water Authority (“the 15 Authority”) and/or other governmental or quasigovernmental entities for a twenty-eight (28) foot easement that will be used by the Authority and/or other public entities approved by Landlord for public utility purposes (“Authority Easement”). The Authority Easement shall be located along the southern border of the subject property and shall be for both underground utility lines or other public utility purposes of the Authority and/or other public entities. The Authority Easement shall provide the Authority and the Landlord with surface and subsurface access for maintenance and repair of underground utility lines, subject to the limitations included in this section. Temporary structures without foundations (such as sheds or modular living areas) may be placed upon the Authority Easement subject to the requirement to temporarily relocate the structures at Landlord’s written request. Said request shall only be for maintenance, refurbishing, relocating, or adding additional utilities. All structures placed within the Authority Easement shall be constructed with the ability to disconnect utilities and remove the structures in the event Landlord were in need of accessing the underground utilities. Any costs associated with the temporary relocation of the structures would be borne by Landlord. Except as provided in this Section, Landlord shall give Tenant no less than sixty (60) days written notice before entering the Authority Easement to conduct maintenance or repairs or requiring the temporary removal of any structures within the Authority Easement.

Notwithstanding the generally-applicable sixty (60) day notice period, if Landlord provides written notice to Tenant of an event or circumstance that creates an emergency or in Landlord’s reasonable opinion creates a material risk of damage or injury to life or property, then Landlord shall provide as much notice to Tenant as is reasonable under the circumstances, and the Authority and the Landlord may enter the Easement Area after such notice for the purpose of conducting emergency repairs. In any event, Landlord and the Authority shall enter the minimum amount of the Easement Area as is necessary and shall take all measures necessary to avoid unreasonable disruptions to Tenant’s operations. The Authority or any other public entity wherein Landlord has granted an easement as defined here shall be required to file a Notice of Vacation in the event the Authority or any other public entity were no longer in need of the Authority Easement for public purposes.

ARTICLE 11

DISBURSEMENT OF DEPOSITED MONEYS
Section 11.01. All sums of the character referred to in Section 4.04 or 9.04, 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 9.04 progresses (collectively referred to as the “Work”), 16 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
17 (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. 18 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 19 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. Upon reasonable prior written notice, which shall be provided no less than two (2) business days in advance except in case of an emergency, 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, which consent shall not be unreasonably delayed, conditioned, or withheld. 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 or legal entity, 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 20 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 21 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 22 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; TENANT’S RIGHT TO TERMINATE
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 Term ended and to reenter 23 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 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 Term ended and to reenter the Property and take possession thereof and remove all persons therefrom by any lawful means, and Tenant shall have no further claim thereon or thereunder; or (b) The right of Landlord to continue the Lease in effect and 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. 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
24 (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 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.
25 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 re-enter 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.

Section 15.11. In addition to Tenant’s right to terminate set forth in Section 1.02, Tenant shall have the right to terminate this Lease without fault by providing written notice to landlord (“Termination Notice”) if: (a) the Improvements are utilized at less than twenty percent (20%) capacity for at least four (4) consecutive months or Tenant otherwise demonstrates that there is insufficient need for housing for homeless persons in the City of Grover Beach; (b) Tenant determines, in its sole and absolute discretion, that there is insufficient funding for the operation and maintenance of the Improvements. Within thirty (30) days of Landlord’s receipt of a Termination Notice, Landlord may provide Tenant written notice that it desires to provide financial assistance or other meaningful assistance to Tenant (“Meet and Confer Notice”). If Landlord timely provides a Meet and Confer Notice, Landlord and Tenant will meet and confer for a period of at least sixty (60) days following Tenant’s receipt of the Meet and Confer Notice. If Landlord fails to timely provide a Meet and Confer Notice, or if the parties are unable to remedy the issues raised by Tenant in the Termination Notice within sixty (60) days following Tenant’s receipt of the Meet and Confer Notice, the Lease will terminate. Tenant shall submit to Landlord a biannual report describing the utilization of the Improvements.

ARTICLE 16

INDEMNIFICATION
Tenant agrees to indemnify, defend, and save harmless Landlord against and from any and all claims by or on behalf of any person that may be suffered by, imposed upon, or asserted against the Landlord by reason of any of the following occurring during the Term, except to the extent that the same shall have been caused in whole or in part by the Landlord’s negligence, willful misconduct, fraud, or intentional act:
(a) any accident, injury (including death at any time resulting therefrom) or damage to any person or property occurring in or on or about the Premises or any part thereof during the Term and after the Term for so long as Tenant remains in possession of the Premises; 26 (b) any claims arising 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
(c) 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, including but not limited to failure to pay prevailing wage and non-compliance with the requirements of Labor Code section 1720 et seq., unless an exemption applies.

Such indemnification from Tenant shall apply from and against all judgments, costs, expenses and liabilities incurred in or about any such claim or action or proceeding brought against Landlord for events occurring during the Term or while Tenant was in possession of the Premises; 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.

Landlord shall indemnify, defend, and save harmless Tenant from any and all claims arising from or in connection with the intentional acts or gross negligence of Landlord, and any breach or default by Landlord of this Lease.

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.
27 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
28 NOTICES
All written notices or demands of any kind, including without limitation the Due Diligence Termination Notice, Termination Notice, Meet and Confer Notice, or Purchase Option Notice, 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:
5Cities Homeless Coalition
100 South 4th Street
Grover Beach, CA 93433
with a copy
thereof to
Burke, Williams & Sorensen, LLP
1 California Street, Suite 3050
San Francisco, CA 94111
Attn: Eric S. Phillips
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 29 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 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.
30 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 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
TENANT’S OPTION TO PURCHASE
Section 26.01. Provided that there is no Event of Default that has not been remedied at the time of the Purchase Option Notice (defined in this Section 26.02), after one (1) year of continuous operations is complete and at least six (6) months prior to the expiration of the Term, Tenant shall have the option to purchase the Property (“Purchase Option”) at 31 a purchase price of One and no/100 Dollars ($1.00) (the “Purchase Price”). Tenant must exercise the Purchase Option by providing written notice (“Purchase Option Notice”) of its exercise to Landlord. Landlord and Tenant will make a reasonable effort to enter into a purchase and sale agreement for Tenant’s purchase of the Property (“Purchase Agreement”) and open an escrow (“Escrow”) by delivering a fully executed Purchase Agreement to Escrow within sixty (60) days of Landlord’s receipt of the Purchase Option Notice.

Section 26.02. The Purchase Agreement shall contain at least the following terms:
(a) The closing of the Escrow (“Closing”) shall take place upon recordation of a grant deed conveying title to the Property to Tenant in the Official Records of the County of San Luis Obispo, subject only to such title exceptions as Tenant shall reasonably approve, provided that Fee Mortgages will not be approved by Tenant. The title company shall provide a preliminary commitment for a standard coverage owner’s form policy of title insurance for the Property within five (5) days after the opening of Escrow. Tenant shall provide written notice of its disapproval of any title exceptions (“Title Objection Notice”) to Landlord, no later than ten (10) days after its receipt of a preliminary commitment for a standard coverage owner’s form policy of title insurance for the Property from the title company. Landlord shall then have ten (10) days after receipt of Tenant’s Title Objection Notice to provide written notice that it has elected to remove the disapproved title exceptions. If Landlord fails to so notify Tenant, Landlord shall be deemed to have elected not to remove the disapproved title exceptions. If any of the disapproved title exceptions remain at Closing, Tenant may terminate the Purchase Agreement by written notice to Landlord or elect to purchase the Property subject to the disapproved title exceptions.
(b) Tenant shall have thirty (30) days from the opening of Escrow to satisfy itself with regard to the physical aspects, environmental aspects, and the condition of the soils of the Property. If Tenant disapproves of the condition of the soils, the physical aspects, or environmental aspects of the Property, Tenant may terminate the Purchase Agreement by written notice to Landlord.
(c) The Closing shall take place within ninety (90) days from the opening of Escrow, unless extended in writing by the parties. The Closing shall in no event take place after the expiration of the Term.

Section 26.04. If the Closing does not occur, the Purchase Option shall terminate and be of no further force and effect and the Lease shall continue until the expiration of the Term.

ARTICLE 27

MISCELLANEOUS
32 Section 27.01. 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 27.02. 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 27.03. 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 27.04. 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 27.05. 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 27.06. This Lease shall be governed by and construed in accordance with the laws of the State of California.

Section 27.07. 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 27.08. 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 27.09. 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.

Section 27.10. Time is of the essence.

Section 27.11. The recitals are incorporated into this Lease as if fully set forth herein. [Signature page follows]
33 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: ________________________ 34 Exhibit “A”
[DESCRIPTION OF PREMISES]
Real property in the City of Grover Beach, County of San Luis Obispo, State of California, described as follows:

LOTS 21 AND 22, BLOCK 3, OF MAP OF RESUBDIVISION NO 3 OF PART OF LOT 1

OF PISMO BEACH GARDENS, IN THE CITY OF GROVER BEACH, COUNTY OF

SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED JULY 15, 1926 IN VOL. 3 OF MAP AT PAGE 77, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 060-542-014
35 EXHIBIT “B”

MEMORANDUM OF GROUND LEASE AND NOTICE OF OPTION

MEMORANDUM OF GROUND LEASE
THIS MEMORANDUM OF GROUND LEASE (this “Memorandum”) is made and entered into this_______ day of _________, 2022 , by and between CITY OF GROVER BEACH, a municipal corporation, whose present address is 154 S. Eighth St., Grover Beach, California (“Landlord”) and 5CITIES HOMELESS COALITION, a California nonprofit public benefit corporation, whose present address is 100 South 4th Street, Grover Beach, CA 93433 California (“Tenant”), with reference to the following facts:

A. Landlord is the owner of that certain real property located in the City of Grover Beach, County of San Luis Obispo, State of California, commonly known as 955 South 4th Street, 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 fifty-five (55) years commencing on__________ , 2022 and terminating on _________, 2077 (the “Term”) 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 __________, 2022 (the “Lease”). The Lease is incorporated herein by this reference. Should any party require any information concerning the Lease, they should contact the Landlord and Tenant at the abovereferenced addresses.

Option to Purchase. Tenant has the right to purchase the Property at any time after one year continuous operation of the property and at least six (6) months prior to the expiration of the Term by providing written notice to Landlord.
[Signature Page Follows]

RECORDING REQUESTED BY

AND WHEN RECORDED,

MAIL TO CITY OF GROVER BEACH
36 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the day and year first above written.

LANDLORD
BY:__________________________
TENANT
BY:______________________________
[Add Notary Acknowledgement][Add Notary Acknowledgement] Agenda Item No. 14

RECOMMENDATION
Adopt the Resolution establishing a Citywide Governance Policy prior to the implementation of City Council district elections in November 2022.

BACKGROUND:

On March 28, 2022, the City Council adopted Ordinance No. 22-02 implementing district elections of the four Council Member seats from the previous at-large election system. November 2022 will be the first district election of Council Members for Districts 1 and 2 (see Attachment 2 – City of Grover Beach City Council District Map) with elections for Council Members in Districts 3 and 4 held in November 2024. The Mayor will continue to be elected on a citywide basis every two years.

It is a best practice for cities with district elections to continue to govern with a citywide approach on priorities, service delivery, and community accessibility. The City of Santa Maria recently implemented district elections and adopted a resolution to establish such an approach as a Council-approved policy. The City of Rohnert Park adopted a similar resolution with its transition to district elections. Staff believes that this is a useful model for Grover Beach that documents and communicates citywide governance expectations for the Council with this change in the method of Council Member election. As such, staff recommends the Council adopt the Resolution shown in Attachment 1 establishing a Citywide Governance Policy to ensure that the Council continues to serve the entire community as a governing body and that City funding is allocated to address community needs on a citywide basis.

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

ALTERNATIVES
The Council has the following alternatives to consider:
1) Adopt the Resolution establishing a Citywide Governance Policy; or 2) Provide alternative direction to staff

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

Staff Report: Resolution Establishing a Citywide Governance Policy Page 2 June 27, 2022

Attachments

1. Resolution

2. City of Grover Beach City Council District Map
RESOLUTION NO. 22-

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

CALIFORNIA, APPROVING AND ESTABLISHING A CITYWIDE

GOVERNANCE POLICY WITH THE IMPLEMENTATION OF CITY COUNCIL

DISTRICT ELECTIONS
WHEREAS, on March 28, 2022, the City Council adopted Ordinance No. 22-02 implementing by-District election of the four Council Member seats; and WHEREAS, November 2022 will be the first election of City Council Members by district for Districts 1 and 2 with elections for Council Members for Districts 3 and 4 in November 2024; and
WHEREAS, The City Council affirms the value of at-large governance regardless of the method from which Council Members are elected; and
WHEREAS, citywide governing allows for the continuation of accessible customer service, the most effective use of taxpayer resources and consistency of City services; and WHEREAS, the City Council agrees it will continue to serve all of the people of the City of Grover Beach.

NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES DELARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The City Council wishes to remain united in its service to the community and will govern on an at-large basis, considering the needs and interests of the entire community.

SECTION 2. As customer service is a priority, any Council Member will help any member of the community who contacts them.

SECTION 3. Professional management of the City will continue to be a Council-Manager form of government under the policy leadership of the City Council as a governing body.

SECTION 4. City resources will be allocated to address priorities and needs on a citywide basis with a budget adopted by the City Council as a governing body.

SECTION 5. Current practices regarding invitations to City Council Members to events and activities and appointments to committees and various bodies will remain in effect.

Attachment 1
Resolution No. 22- Page 2
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:

JEFF LEE, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
**DRAFT**
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)

Grover Beach City CouncilJune 27, 2022

Grover Beach City Council
June 27, 2022