Grover Beach City Council
June 12, 2023

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, JUNE 12, 2023, 6:00 PM
Next Resolution No .23-17
Next Ordinance No. 23-02

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

CALL TO ORDER

CALL TO ORDER

MOMENT OF SILENCE

FLAG SALUTE
ROLL CALL Council Members Daniel Rushing, Clint Weirick, Zach Zimmerman, Mayor Pro Tem Robert Robert, and Mayor Karen Bright

CLOSED SESSION ANNOUNCEMENTS
None

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 June Pride Month

PRESENTATIONS
None
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 12, 2023

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.

2. Minutes of the Regular City Council Meeting on Monday, May 22, 2023. (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

3. Resolution Confirming a List of Street Projects Funded by SB 1: The Road Repair and Accountability Act – Public Works Director/City Engineer Ray and Capital Improvement Project Manager Wiggin
(Recommended Action: Adopt a Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2023-24 budget.)

ROLL CALL VOTE

4. West Grand Avenue Streetscape Project 4th-8th Street (CIP 2287) Design Amendment – Public Works Director/City Engineer Ray and Capital Improvement Project Manager Wiggin
(Recommended Action: Authorize the City Manager to approve change orders for design changes up to $130,000 for the West Grand Avenue Streetscape 4th-8th Street Project.)

ROLL CALL VOTE

5. Resolution Authorizing the Display of Specified Commemorative Flags – Deputy City Manager Eriksson
(Recommended Action: Adopt a resolution authorizing the display of commemorative flags honoring the United States Army, Prisoners of War or Missing in Action servicepeople and the United States Marine Corps on specified dates in 2023.)

ROLL CALL VOTE

6. City Purpose and Principles – Deputy City Manager Eriksson (Recommended Action: Receive and file a report on the City Purpose and Principles developed by staff to define a citywide vision for the City organization.)

VOICE VOTE

PUBLIC HEARING

7. FY 2023-25 Proposed Budget and FY 2023-28 Capital Improvement Program – Administrative Services Director Purcell
(Recommended Action: Review the FY 2023-25 Proposed Budget and FY 2023-28 Capital Improvement Program and provide direction to staff to finalize the two-year budget for adoption on June 26, 2023.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, June 12, 2023

REGULAR BUSINESS

8. Five Cities Fire Authority (FCFA) Joint Powers Authority Agreement, Appointment of Council Representatives to FCFA Board, and Policy Direction on Agreements with Oceano Community Services District – City Manager Bronson (Recommended Actions: Approve the Joint Powers Authority agreement for an Amended and Restated Five Cities Fire Authority (FCFA); appoint Council representatives to the reconstituted FCFA Board; and provide policy direction on agreements with Oceano Community Services District on temporary fire and emergency medical services and ongoing obligations for CalPERS pension liabilities.)

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.

Air Pollution Control District (APCD) Karen Bright (Alt: Robert Robert) Central Coast Blue Regional Recycled Water Authority Karen Bright (Alt: Daniel Rushing) (CCBRRWA)
South SLO County Sanitation District (SSLOCSD) Karen Bright (Alt: Clint Weirick) Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Daniel Rushing) Five Cities Fire Joint Powers Authority Daniel Rushing (Alt: Clint Weirick) SLO Council of Governments / SLO Regional Transit Authority Daniel Rushing (Alt: Karen Bright) (SLOCOG / SLORTA)
South County Transit Committee Daniel Rushing (Alt: Karen Bright) Zone Three Advisory Committee Daniel Rushing (Alt: Karen Bright) Homeless Services Oversight Council (HSOC) Clint Weirick (Alt: Zach Zimmerman) SLO County Water Resources Advisory Committee (WRAC) Clint Weirick (Alt: Robert Robert) REACH Zach Zimmerman (Alt: Robert Robert)
South County Chambers of Commerce Zach Zimmerman (Alt: Daniel Rushing) Visit SLO CAL Advisory Committee Zach Zimmerman (Alt: Robert Robert)

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 4
Monday, June 12, 2023

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

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

CITY OF GROVER BEACH

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

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

1.0 DECORUM AND ORDER – IN GENERAL

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

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

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

2.0 DECORUM AND ORDER – COUNCIL MEMBERS

2.1 Manner of Speaking.

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

2.1(a) Questioning Staff.

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

2.1(b) Interruptions.

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

3.0 DECORUM AND ORDER – STAFF

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

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

4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC

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

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

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

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

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

5.0 ENFORCEMENT OF DECORUM

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

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

PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH Declaring June 2023
“Lesbian, Gay, Bisexual, Transgender, And Queer Pride Month” WHEREAS, the City of Grover Beach is honored to recognize Pride Month and celebrate members of the Lesbian, Gay, Bisexual, Transgender, and Queer community who live and work here; and
WHEREAS, the City aligns with countywide and statewide initiatives and policies that advance the LGBTQ community’s journey toward equality, and strives to create a safe, inclusive society in which all community members are treated fairly, with dignity and respect in all settings; and
WHEREAS, this is the fourth year of flying the Pride flag at Grover Beach City Hall as a symbol of support for the LGBTQ community; and
WHEREAS, the City of Grover Beach takes pride in the fact that we are a vibrant, diverse community and proudly joins other communities in striving to build a stronger, better state and nation for all residents; and
WHEREAS, as June 2023 marks the 54th anniversary of the Stonewall Uprising in New York City, the City of Grover Beach is dedicated to continuing efforts to ensure equality and respect for all; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby designates June 2023 as Lesbian, Gay, Bisexual, Transgender, and Queer Pride Month.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 12th day of June 2023.
__________________________
Karen Bright, Mayor
Attest:
_________________________
Wendi Sims, City Clerk
Agenda Item No. 1

MINUTES

CITY COUNCIL MEETING
MONDAY, MAY 22, 2023
CALL TO ORDER Mayor Bright called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.

MOMENT OF SILENCE
FLAG SALUTE The flag salute was led by Jameson Malatamban, 9 years old and a 3rd grade student at Grover Heights Elementary School.

ROLL CALL
City Council: Council Members Daniel Rushing, Clint Weirick, Zach Zimmerman, Mayor Pro Tem Robert Robert, and Mayor Karen Bright were present.

City Staff: City Manager Matthew Bronson, Deputy City Manager Kristin Eriksson, City Clerk Wendi Sims, Police Chief John Peters, Administrative Services Director Deanne Purcell, Community Development Director Megan Martin, Public Works Director/City Engineer Greg Ray, Parks and Recreation Director Kathy Petker, Senior Engineer Gabriel Munoz-Morris and City Manager’s Office Inter Tiffany Jespersen was also present. City Attorney David Hale was present virtually via teleconference.

CLOSED SESSION ANNOUNCEMENTS:

None.

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

CEREMONIAL CALENDAR

1. Proclamation for Hunger Awareness Day was read by Council Member Zimmerman and accepted by the SLO Food Bank Chief Executive Officer Garret Olson.

2. Proclamation for Public Works Week was read by Council Member Weirick and accepted by Public Works Director/City Engineer Greg Ray.

PRESENTATIONS
None.

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.
• Cathryn Sells
Agenda Item No. 2
Minutes: City Council Meeting Page 2
Monday, May 22, 2023

No further comments were received and the Mayor closed the Public Communications segment for this portion of the meeting.

CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Bright invited public comment on the items under the Consent Agenda. At this time Mayor Bright asked if there was anyone who would like to make any public comments. No comments were received and the Mayor closed public comment.

It was motioned by Council Member Rushing and seconded by Mayor Pro Tem Robert to approve Consent Agenda Item Nos 3, 4, 5, 6, and 7 as recommended. The motion carried on the following voice vote:

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

3. Treasurer’s Report for the Period April 1, through April 30, 2023.

Action: Approved the Treasurer’s Report as submitted.

4. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period April 1, through April 30, 2023.

Action: Approved the Treasurer’s Report as submitted.

5. Minutes of the City Council Meeting on Monday, May 8, 2023.

Action: Approved the minutes as submitted.

6. Amendments to the Police Officer Trainee Compensation Plan and the Police Officer Hiring Incentive Program
Action: Adopt Resolution No. 23-13 Amending the Compensation Plan for the Police Officer Trainee Position and Amending the Police Officer Hiring Program.

Resolution No. 23-13: A Resolution of the City Council of the City of Grover Beach, California, Amending Resolution No. 02-73 Amending the Classification and Compensation Plan for Police Officer Trainee and Amending Resolution No. 19-43 Amending the Police Officer Hiring Incentive Program

7. Resolution to Approve the Agreement for Contract Administrative Services with the Central Coast Blue Regional Recycled Water Authority
Action: Adopt Resolution No. 23-14 approving the agreement for contract administrative services between the Central Coast Blue Regional Recycled Water Authority and the City of Grover Beach to provide certain accounting, financial and information technology services.

Minutes: City Council Meeting Page 3
Monday, May 22, 2023

Resolution No. 23-14: A Resolution of the City Council of the City of Grover Beach, California, Approving an Agreement for Appointment of a Treasurer/Controller and Contract Administrative Services with the Central Coast Blue Regional Recycled Water Authority.

PUBLIC HEARING

8. Second Reading, and Adoption of an Ordinance Repealing and Replacing Chapter 1 (Sanitary Sewer System) of Article VII (Public Works) of the Grover Beach Municipal Code
Mayor Bright read the title to the foregoing item and deferred to staff for a report.

Public Works Director/City Engineer Ray and Senior Engineer Munoz-Morris gave a PowerPoint presentation reviewing the Sewer System Ordinance.

Mayor Bright invited public comment on this matter.
• Stefan Podell
• Aaron Wolfram
• Ben Gilden
• Ann McDowell
• Cathy Gilden
• John Byrne
• Jonathan Femster
• Lori Homan
• John Gannon
• Don Hitko
• Randall Myrick
• Spencer McDermott
• James Alford
No additional public comments were received at this time and the Mayor closed public comments.

Action: City Council gave direction to staff to continue this item to a date uncertain.

RECESS: Mayor Bright requested a 5-minute break, upon consensus of the City Council the meeting recessed at 7:54 p.m.

RECONVENE: At 8:00 p.m. the meeting was reconvened with all members of Council present.

Minutes: City Council Meeting Page 4
Monday, May 22, 2023

9. Development Application 23-14 - Request for a Two-year Time Extension for Development Application 10-03 for the Grover Beach Lodge Project Located at 55 West Grand Avenue
Mayor Bright read the title to the foregoing item and deferred to staff for a report.

Community Development Director Martin gave a PowerPoint presentation reviewing the proposed project requesting a two-year time extension.

Mayor Bright invited public comment on this matter.
• Brian Rogers – Pacifica Companies
• Tom Bell – Pacifica Companies
No additional public comments were received at this time and the Mayor closed public comments.

Action: It was motioned by Council Member Weirick and seconded by Mayor Pro Tem Robert to approve Resolution No. 23-15 for Development Application 23-14 granting a two-year time extension for Development Application 10-03 with previously adopted Final Environmental Impact Report (SCH# 201051002).

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

Resolution No. 23-15: A Resolution of the City Council of the City of Grover Beach, California Approving Development Application 23-14 for a Two-Year Time Extension to Development Application 10-03 for the Grover Beach Lodge Project.

REGULAR BUSINESS
At 8:12 p.m. Council Members Rushing recused himself from the dais due to a conflict of interest for item 10. Award of FY 2023-24 Community Grants.

10. Award of FY 2023-24 Community Grants
Mayor Bright read the title to the foregoing item and deferred to staff for a report.

Deputy City Manager Eriksson and City Manager’s Office Inter Jespersen gave a PowerPoint presentation of the Awards of FY 2023-24 Community Grants.

Minutes: City Council Meeting Page 5
Monday, May 22, 2023

Mayor Bright invited public comment on this matter.
• Mary Ciesinski
• Rebecca Britton
• Kirsten Rambo
• Sarah Otis
No additional public comments were received at this time and the Mayor closed public comments.

Action: It was motioned by Mayor Pro Tem Robert and seconded by Council Member Zimmerman to approve the recommended FY 2023-24 Community Grants to provide $50,000 in American Rescue Plan Act (ARPA) funding to community-based organizations to provide services or programs for Grover Beach residents.

AYES: Council Members – Weirick, Zimmerman, Mayor Pro Tem Robert and Mayor Bright
NOES: Council Members – None.

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

RECUSED: Council Members – Rushing.

At 8:28 p.m. Council Member Rushing returned to the dais.

11. Resolution Authorizing the Display of Pride Flag at City Hall Flagpole Mayor Bright read the title to the foregoing item and deferred to staff for a report.

Deputy City Manager Eriksson gave a brief description of the resolution authorizing the display of the Pride Flag at City Hall.

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

Action: It was motioned by Council Member Rushing and seconded by Council Member Weirick to adopt Resolution No. 23-16 authorizing the display of a Commemorative flag to celebrate Pride month at City Hall during the month of June 2023. The motion was carried on the following roll call vote:

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

ABSENT: Council Members – None.

ABSTAIN: Council Members – None.

Minutes: City Council Meeting Page 6
Monday, May 22, 2023

Resolution No. 23-16: A Resolution of the City Council of the City of Grover Beach, California Authorizing the Display of a Commemorative Flag in Support of Pride Month During the Month of June.

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. No comments were received and the Mayor closed public comment.

COUNCIL COMMITTEE REPORTS
Mayor Pro Tem Robert reported on the Integrated Waste Management Authority (IWMA) meeting.

Council Member Weirick stated since he is an alternate for the Five Cities Fire Joint Powers Authority toured Station 2. He also reported on the Homeless Services Oversight Committee (HSOC) meeting.

Mayor Bright reported on the Air Pollution Control District (APCD) meeting and discussed the South SLO County Sanitation District (SSLOCDSD) meeting.

COUNCIL COMMUNICATIONS
Council Member Zimmerman highlighted everyone’s participation in the “Strawberries through Grover Beach”.

Council Member Rushing requested to add to the next agenda an item to fly the United States Army Flag for a single day, on the day of their founding, June 14th, which is also, Flag Day. He stated a resident has also agreed to provide the flag to fly, so this will be no cost to the city.

Received unanimous consensus from the Council to add this item to the next agenda.

Mayor Pro Tem Robert suggested also, flying the United States Marine Corp flag on their birthday.

He also questioned if the Council needs consensus to fly a Military flag, with City Manager Bronson responding yes.

Council Member Weirick requested to add the POW flag to fly on September 8th, to the request on the next agenda item. He requested concurrence from the Council to have the Grover Heights Prep Proposal be forwarded to the Parks, Recreation and Beautification Commission and received unanimous concurrence. He also requested concurrence to have National Recovery Month in September be put on the ceremonial calendar for a proclamation, he received unanimous concurrence. He reported that the San Luis Obispo Integrated Waste Management Authority had their Council Wide Solid Waste Orientation on Tuesday, May 16th and it was recorded and he will send the link when it is available for viewing. Council Member Weirick thanked the participates involved with the “Strawberries through Grover Beach”, reported on the Filipino Community Center delicious BBQ on May 21st, the Asian American-Pacific Islander (API) of San Luis Obispo County Festival on March 13th, Judkins Middle School had 8th grade Interviews.

Minutes: City Council Meeting Page 7
Monday, May 22, 2023

Mayor Bright thanked all who had a hand in the “Strawberries through Grover Beach” event and reported on the Grover Beach Garden Tour on May 21st. She also reported on her and Mayor Pro Tem Roberts attendance to the California Joint Powers Insurance Agency (CJPIA) Conference in Paso Robles.

Mayor Pro Tem Robert reported that Sister Kitchen has a new location on Grand Avenue next to the Moon & Co Plant Nursery.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson reiterated how wonderful the “Strawberries through Grover Beach” event was and thanked the Community Organizers for bringing this forward to our community and is looking forward to seeing many more iterations of this event.

CITY ATTORNEY’S REPORTS AND COMMENTS
City Attorney Hale stated that he negotiated the remainder of the Fire Service Agreement between Oceano and Five Cities Fire Authority.

CLOSED SESSION
None.

ADJOURNMENT
There being no further business to come before the City Council, Mayor Bright adjourned the meeting at 8:54 p.m.
_____________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

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

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, Capital Improvement Project Manager
SUBJECT: Resolution Confirming a List of Street Projects Funded by SB 1: The Road Repair and Accountability Act

RECOMMENDATION
Adopt a Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2023-24 budget.

BACKGROUND
On April 28, 2017, the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. The Act intends to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system. SB 1 increased per gallon fuel excise taxes; diesel fuel sales taxes and vehicle registration fees; and provided for inflationary adjustments to tax rates in future years.

As part of the Act, the bill created the Road Maintenance and Rehabilitation Account (RMRA) to fund road maintenance and other projects. The City has received approximately $1,250,000 in RMRA funding to date. To receive RMRA funding each year, cities and counties must submit a list of projects to the California Transportation Commission (CTC). All projects proposed must be adopted by resolution by the City Council at a regular public meeting which the Council adopted affirming the list of SB 1 projects.

Council previously awarded contracts for design of repair projects on several major streets including North 4th Street (West Grand Avenue to Ocean View Avenue), South Oak Park Boulevard (West Grand Avenue to Mentone Avenue), West Grand Avenue (4th Street to 8th Street) and West Grand Avenue (11th Street to Oak Park Boulevard). The design work was funded with SB 1 funds along with the construction of the South Oak Park Boulevard project (CIP 2284). For FY 2023-23, staff is recommending allocation of SB 1 funds to the West Grand Avenue Streetscape project (CIP 2287) and to the North 4th Street Major Street Rehabilitation Project (CIP 2285). Pending Council action to confirm the use SB 1 funds, staff will send a copy of the adopted resolution to the CTC pursuant to direction from CTC staff.

FISCAL IMPACT
Adoption of this Resolution will allow the City to receive SB 1 funding estimated to be $309,074 for FY 2023-24. Depending on additional revenue estimates by the CTC and State Controller, additional funding may be available for programming in the future.

Staff Report: Resolution Confirming SB-1 Projects Page 2 June 12, 2023

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2023-24 budget; or

2. Do not adopt the Resolution and do not fund the above capital projects or fund them using other funding sources; or

3. Provide staff with alternative direction.

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

Attachments

1. Resolution

RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Grover Beach must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Grover Beach will receive an estimated $309,074 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City of Grover Beach is receiving SB 1 funding and will enable the City of Grover Beach to continue essential road maintenance and rehabilitation projects; and
WHEREAS, the City of Grover Beach used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that are not eligible for the City’s Measure K-14 bond funds and that also meet the community’s priorities for transportation investment; and WHEREAS, the City of Grover Beach has undergone a public process to gather public input for the project list; and
WHERAS, the funding from SB 1 will help the City of Grover Beach maintain and rehabilitate its Major Streets including West Grand Avenue and North 4th Street; and WHEREAS, the current Pavement Condition Index value is 43 for the City’s Major Streets and this revenue will help us increase the overall quality of our road system and over the next decade it will help bring our streets and roads to a PCI of 65; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits city and countywide.

Attachment 1
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, does hereby adopt that Capital Improvement Projects (CIP) #2287 West Grand Avenue Streetscape and CIP # 2285 Major Street Rehabilitation North 4th Street are to incorporate SB 1 Funds into the Fiscal Year 2023-24 Budget for the identified projects.

Project Title: CIP 2287 West Grand Avenue Streetscape
Project Description: Construction of medians and pavement rehabilitation (full depth reclamation) to provide a pedestrian friendly corridor.

Project Location: West Grand Avenue from 4th Street to 8th Street Estimated Project Schedule: Design (07/2022-8/2023), Construction (9/2023- 04/2024) based on the component being funded with RMRA funds Estimated Project Useful Life: 20 years
Project Title: CIP 2285 Major Street Rehabilitation North 4th Street Project Description: Pavement Rehabilitation (Grind and Overlay) Project Location: North 4th Street from West Grand Avenue to Ocean View Avenue
Estimated Project Schedule: Design (10/2021-12/2023), Construction (01/2024- 7/2024) based on the component being funded with RMRA funds Estimated Project Useful Life: 15 years
On motion by Council Member, seconded by Council Member, and on the following rollcall vote, to wit:

AYES: Council Member –
NOES: Council Member –
ABSENT: Council Member –
ABSTAIN: Council Member –
RECUSED: Council Member –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 12th day of June 2023. ___________________________________

KAREN BRIGHT, MAYOR
Attest:
_______________________________

WENDI SIMS, CITY CLERK
Agenda Item No. 4

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, Capital Improvement Project Manager
SUBJECT: West Grand Avenue Streetscape Project 4th-8th Street (CIP 2287) Design Amendment

RECOMMENDATION
Authorize the City Manager to approve change orders for design changes up to $130,000 for the West Grand Avenue Streetscape 4th-8th Street project.

BACKGROUND
The City has placed a strong emphasis on improving the West Grand Avenue corridor in alignment with Council Goals. Previous projects to enhance West Grand Avenue include work from Highway 1 west to State Parks property, 2nd Street to 4th Street, and 8th Street 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 reaffirmed previous direction to proceed with the West Grand Avenue Streetscape Project (CIP 2287) in FY 2022-23, given the significant redevelopment opportunities along this section of West Grand Avenue from 4th Street to 8th Street.

On June 27, 2022, Council entered into an agreement with BKF Engineers for Design Services in the amount of $236,284 and authorized the City Manager to approve change orders up to $40,000.

In August 2022, the City was awarded a $1.5M Community Betterments Grant from the San Luis Obispo Council of Governments (SLOCOG) in recognition of the development opportunities related to this project particularly with housing. This grant helped provide funding for the project and allowed for expansion of the scope to include the design and construction of storm drains and evaluation of other elements on this section of West Grand Avenue. However, this additional scope for design of storm drains plus locating services for existing utilities and design of a water main extension onto N. 5th Street to support future development will increase design costs beyond the current $40,000 limit for change orders. In order to expedite completion of the design, staff is recommending authorization for the City Manager to approve change orders up to $130,000 for the West Grand Avenue Streetscape Project (CIP 2287) to complete the expanded design scope.

A near-final design of the project will be brought to the Council for review on June 26 prior to finalizing the design this summer and preparing construction bidding documents.

FISCAL IMPACT
The cost for the original scope of design was estimated to be $236,284 with authorization to approve change orders up to $40,000. The authorization for approval of change orders will now be up to $130,000. Funding for this design work is included in the City’s General Fund.

Staff Report: West Grand Avenue Streetscape Project Design Amendment (CIP 2287) Page 2 June 12, 2023

ALTERNATIVES
The Council has the following alternatives to consider:

1. Authorize the City Manager to approve change orders for design changes up to $130,000 for the West Grand Avenue Streetscape 4th-8th Street project; or

2. Do not authorize the City Manager to approve such change orders; or

3. Provide staff with additional direction.

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

Agenda Item No. 5

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Resolution Authorizing Display of Specified Commemorative Flags

RECOMMENDATION
Adopt a resolution authorizing the display of commemorative flags honoring the United States Army, Prisoners of War or Missing in Action servicepeople and the United States Marine Corps on specified dates in 2023.
____________________________________________________________________________

BACKGROUND
Historically, the City has displayed the United States Flag, the State of California Flag, and the City of Grover Beach Flag at City Hall and other City facilities in accordance with Federal and State law. On May 8, 2023, the City Council adopted a resolution to establish a formal policy for the approval and display of commemorative flags which clarified that City flagpoles are not intended to serve as a forum for free expression or speech by the public. The policy established a process by which commemorative flags may be flown on City flagpoles, upon Council approval, to express the official sentiments of the City.

At the May 22, 2023 City Council meeting, the Council adopted a resolution to authorize flying the Pride Flag as a symbol of support for the LGBTQ community during the month of June. The Council also provided direction to staff to return with a resolution to authorize the display of three other commemorative flags on specified dates in 2023, including:
1) Official flag of the United States Army on June 14, 2023; 2) National League of Families’ Prisoner of War/Missing in Action flag on September 15, 2023; and
3) Official flag of the United States Marine Corps on November 10, 2023.

FISCAL IMPACT
There is no direct fiscal impact to this action.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt a resolution to authorize the display commemorative flags honoring the United States Army, Prisoners of War or Mission in Action servicepeople and the United States Marine Corps on specified dates in 2023; or

2. Provide staff with alternative direction.

Staff Report: Resolution Authorizing Display of Specified Commemorative Flags Page 2 June 12, 2023

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

Attachments

1. Resolution

2. City’s Flag Policy
RESOLUTION NO. 23-__

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

CALIFORNIA AUTHORIZING THE DISPLAY OF SPECIFIED COMMEMORATIVE FLAGS
WHEREAS, the City of Grover Beach currently displays the United States Flag and the State of California Flag at the Grover Beach City Hall; and WHEREAS, the City of Grover Beach has adopted a flag policy that allows the display of commemorative flags upon resolution of the City Council; and WHEREAS, in adopting this Policy, the City Council desires to reflect the dignity of the flags flown at City-owned or City-maintained facilities, as well as the role the Grover Beach City Hall as an inclusive gathering location and local symbol of government and democracy; NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Grover Beach authorizes the display of the following commemorative flags on the dates specified below:
1) The official flag of the United States Army on June 14, 2023 2) The National League of Families Prisoner of War/Missing in Action flag on September 15, 2023
3) The official flag of the United States Marine Corps on November 10, 2023 BE IT FURTHER RESOLVED that the foregoing recitations are true and correct and are included herein by reference as findings.

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

AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular meeting of the City Council of the City of Grover Beach, California this 12th day of June, 2023. __________________________________

KAREN BRIGHT, MAYOR
ATTEST:
_______________________________

WENDI SIMS, CITY CLERK

D R A F T
Attachment 1
1 CITY OF GROVER BEACH POLICY ON

DISPLAY OF FLAGS
Attachment 2
I. Purpose
A. The Grover Beach City Council desires to establish clear guidelines regarding:

1. The outdoor display of the United States Flag, the California State Flag, and the City of Grover Beach Flag at City facilities or City-owned or City-maintained flagpoles; and
B. In adopting this Policy, the City Council desires to reflect the dignity of the flags flown on flagpoles or displayed at City-owned or City-maintained facilities, as well as the role of the Grover Beach City Hall as an inclusive gathering location and local symbol of government and democracy.

C. In adopting this Policy, the City Council declares that flagpoles owned or maintained by the City of Grover Beach are not intended to serve as a forum for free expression by the public, but rather as a non-public forum for the display of the United States, State of California, City of Grover Beach, and any commemorative flag authorized by the City Council as an expression of the City Council's official sentiments (government speech).

II. Policy
A. Conformance with Federal and State Regulations. Flags shall be displayed in accordance with Federal and State statutes and regulations, including, but not limited to, United States Code, Title 4, Chapter 1 and California Government Code section 430 et seq., and this Policy.

1. Per California Government Code section 431(a), the Flag of the United States and the Flag of the State of California shall be prominently displayed upon or in front of public buildings of the City.

2. Per California Government Code section 434.7, any Flag of the United States or Flag of California that the City purchases must be made in the United States.

3. The United States Flag may only be flown at half-staff in accordance with the guidelines set forth at https://www.usa.gov/flag. The State of California Flag shall be flown at half-staff if the United States Flag is flown at half-staff or on order of the Governor.

B. City Facilities other than the Grover Beach City Hall. At facilities that the City owns or maintains (other than facilities maintained by other governmental entities), there may be one flagpole where the United States Flag shall be flown, and the State of California flag may be flown as described in this Section II, entitled Policy. 2 C. Grover Beach City Hall.

1. There shall be flagpoles at the Grover Beach City Hall to fly the following flags in the manner described below: Flag of the United States, Flag of the State of California, Flag of the City of Grover Beach, and any approved commemorative flag.

2. The City of Grover Beach Flag shall fly at half-staff if either the United States or California Flag is at half-staff. The Mayor may order the City of Grover BeachFlag to fly at half-staff at the death of a current or former City Council Member or current City staff member or a historically significant member of the community.

3. Commemorative Flag.
a. As expression of the City’s official government speech, the City Council may authorize the display of a commemorative flag to fly only at the Grover Beach City Hall flagpole.
b. The City Council shall only consider a request to display a commemorative flag if the request is made by a member of the Grover Beach City Council and another City Council member agrees to place the discussion to authorize such display on the agenda for a regular or special City Council meeting. Requests to fly a commemorative flag by members of the public will not be considered.
c. At a noticed and agendized City Council meeting, a majority of Council Members must agree to display the commemorative flag.
d. Commemorative flags shall be displayed for a period of time that is reasonable or customary for the subject that is to be commemorated, but no longer than thirty (30) consecutive days.
e. Commemorative flags must be either purchased by the City or temporarily donated for the City’s use and must be clean, without holes and tears, and be made of an all-weather fabric. Commemorative flags must be the same size or smaller than the United States and California flags that are flown.

The City will not be responsible for the condition of the commemorative flag once flown.
f. If any other flag is flown at half-staff, the commemorative flag will also be flown at half-staff.
g. A “commemorative flag” as defined in this Policy shall mean a flag that identifies with a specific historical event, cause, nation or group of people that the City Council chooses to honor or commemorate consistent with the City’s mission and priorities. The following are not allowed as Commemorative Flags and will not be considered by the City Council:
3 i. Flags of a particular religious movement or creed to avoid the appearance of City government endorsing religion or a particular religious movement or creed;
ii. Flags of a political party to avoid the appearance of City government endorsing a political party; and
iii. Flags advocating a certain outcome in an election.

III. Procedures
A. No other flag shall be placed above the United States Flag and no other flag shall be larger than the United States Flag. Other flags may be flown at the same heightand in the same size, in accordance with this Policy. Where both the United State Flag and the California State Flags are flown, they shall be of the same size.

B. Flags should be hoisted briskly and lowered ceremoniously. The United States Flagshould be hoisted first and lowered last.

C. Flags shall be displayed during operating hours on all days on which the City is open for business, and on national and State holidays. Flags may be displayed twenty-four (24) hours a day as long as they are illuminated during darkness.

D. Flags shall not be displayed during inclement weather unless all-weather flags areused and are illuminated during darkness.

E. When flags are displayed on a single pole, the order from top to bottom shall be: the United States Flag, the California State Flag, and, if displayed, the City of Grover Beach Flag.

F. When the flags are flown from adjacent flag poles, the United States Flag shall beflown at the highest point of honor, which is the furthest point to the left from the standpoint of the observer ("the flag's right").

G. When a flag is displayed at half-staff, it shall first be hoisted to the peak for a moment and then lowered to half-staff position. Before being lowered at the end ofthe day or when taken down, the flags shall again be hoisted to the peak for a moment and then fully lowered.

Agenda Item No. 6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: City Purpose and Principles

RECOMMENDATION
Receive and file a report on the City Purpose and Principles developed by staff to define a citywide vision for the City organization.

BACKGROUND
In 2019, City staff began working on a citywide Mission, Values and Principles, modeled after similar efforts by other local government agencies to define staff’s purpose, goals and common vision for the City organization. That effort was put on hold due to the COVID-19 pandemic, however, in early 2023, staff formed a working group to resume and finish this effort. The working group included representatives from multiple departments including the City Manager’s Office, Administrative Services, Community Development, Police, and Public Works. The working group developed a draft Mission and set of Principles, which was presented at an Executive Team/MidManagement meeting in March 2023. After receiving feedback from that group, the working group revised and updated the draft and presented it to employees at a monthly all-staff meeting in April.

The draft was updated to incorporate employee feedback and was presented to the Executive Team in May, with the team expressing support along with a final suggestion to change “Mission” to “Purpose” to better convey the intent of that statement.

The final version of the City Purpose and Principles is shown in Attachment 1. This document is intended to define the purpose and values of our City organization, setting a foundation for our actions, strategies and interactions with the community in the implementation of the goals set by Council. The Purpose statement reflects City staff’s commitment to making a positive impact on our community by providing services that improve the well-being and satisfaction of those who reside, work or recreate in Grover Beach. The Principles reflect City staff’s commitments to:
• Provide quality and efficient services
• Embrace change and continuously seek opportunities for improvement in all areas of our operations
• Create a welcoming and inclusive environment to better understand and address the needs of our diverse community
• Involve residents, business owners and other stakeholders in decision-making processes and to maintain the highest ethical standards
• Actively seek opportunities to collaborate with other cities, organizations and agencies to achieve common regional goals.

Staff will use the City Purpose and Principles to convey our organizational vision and provide a framework to recruit and retain talented employees who are aligned with these principles; Staff Report: City Purpose and Principles Page 2
June 12, 2023

enhance and improve City services, systems, and processes; and work with our community and others in our region to create an even stronger Grover Beach.

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

ALTERNATIVES
The Council has the following alternatives to consider:
1) Receive and file a report on the City Purpose and Principles developed by staff to define a citywide vision for the City organization; or
2) Provide alternative direction to staff.

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

Attachments

1. City Purpose and Principles

OUR PURPOSE
Enhance the quality of life for those who live, work
and play in Grover Beach

OUR PRINCIPLES
Provide exemplary City services and experiences
Encourage innovation and a culture of constant
improvement
Foster a diverse and inclusive workforce that reflects the community we serve
Strengthen community connections to promote an ethical
and transparent City government
Advance policies that support regional cooperation
through teamwork and action-driven leadership
Attachment 1
Agenda Item No. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: FY 2023-25 Proposed Budget and FY 2023-28 Capital Improvement Program

RECOMMENDATION
Review the FY 2023-25 Proposed Budget and FY 2023-28 Capital Improvement Program and provide direction to staff to finalize the two-year budget for adoption on June 26, 2023.

BACKGROUND
The FY 2023-25 Proposed Budget and FY 2023-28 Five-Year Capital Improvement Program (CIP) has been released to the Council and posted on the City’s website along with attached to this staff report as Attachment 1. A public hearing will be held on June 12, 2023, to take public comment on the proposed budget and receive Council direction prior to the adoption of the FY 2023-25 budget scheduled for June 26, 2023.

The total proposed citywide budget for FY 2023-24 is $36.2 million, including $18.9 million in the City’s General Fund, $5.6 million in Enterprise Funds including Water and Wastewater Funds, and $1.5 million in Special Revenue Funds, not including the CIP. The five-year CIP includes $10.2 million in funding in FY 2023-24 for key capital projects or 28% of the total proposed citywide budget. The total proposed citywide budget for FY 2024-25 is $31.7 million, including $18.8 million in the City’s General Fund, $5.5 million in Enterprise Funds including Water and Wastewater Funds, and $1.3 million in Special Revenue Funds, not including the CIP. The five-year CIP includes $6.0 million in funding in FY 2024-25 for key capital projects or 19% of the total proposed citywide budget. Highlights and major changes to the budget are identified in the City Manager’s Letter of Transmittal which is included in the first section of the Proposed Budget document and information on the City’s revenues and expenditures is incorporated throughout the document.

The City continues to build a strong financial foundation that allows for significant investments to address community needs as reflected in the Council Goals for FY 2023-25. General Fund tax revenues make up close to 80% of total revenue and are on track with the five-year forecast. This includes the following five significant revenue sources:
• Sales Tax– projections assume that sales tax revenues will plateau in FY 2023-24 with a minor increase of 0.6% from the current FY 2022-23 and then return to a more consistent growth level of 3% in FY 2024-25. Estimates include $2.6 million in both FY 2023-24 and FY 2024-25 from Measure F-20 approved by voters in November 2020. • Property Tax - projected growth of 4% in FY 2023-24 and 3% in FY 2024-25. • Cannabis Tax – projection assumes $1.3 million in FY 2022-23 as a base with a 2% annual inflationary increase in both FY 2023-24 and FY 2024-25.

Staff Report: FY 2023-25 Proposed Budget and FY 2023-28 Five Year CIP Page 2 June 12, 2023

• Transient Occupancy Tax (TOT) – projections assume a 3% increase in both FY 2023-24 and FY 2024-25 based on short-term rentals and increased travel activity. TOT does not include future hotel projects until construction begins though construction is anticipated to begin on the 950 El Camino Real hotel project in FY 2023-24. • Franchise Fees – Franchise fees for FY 2023-24 of $735,000 include the new transoceanic fiber optic cable revenue of $100,000 that was delayed for the last two fiscal years but is expected to be collected next year. For FY 2024-25, the proposed franchise fees of $948,000 include a total fiber optic cable revenue of $300,000.

In terms of expenditures, the Proposed Budget includes a General Fund contribution of $1.5 million in both FY 2023-24 and FY 2024-25 for the City’s CIP. This is well above the $300,000 contribution for CIP in FY 2020-21 and prior years. The Proposed Budget for the General Fund also includes operating budget recommendations of $290,000 in additional net expenses for FY 2023-24 and $458,000 in additional net expenses for FY 2024-25. Examples of General Fund budget recommendations reflected in the Proposed Budget are included below:
• 1.0 FTE in Public Works for Maintenance Superintendent position (40% funded by the General Fund with the rest by Enterprise Funds)
• 0.5 FTE in Parks and Recreation to increase part-time Administrative Assistant I position to full-time (funding this year previously approved as a mid-year budget adjustment) • Six new Police patrol vehicles to replace existing vehicles at the end of their useful life • Three new Public Works fleet trucks to replace outdated existing vehicles • Vehicle storage rental costs for Police and Public Works vehicles (87% funded by the General Fund with the rest of Police COPS grant funds)
• Technology equipment for Police including additional body cameras and drones • Health and wellness program expenditures in Police
• Fire Authority station alerting system
• Additional organizational development and training costs The General Fund operating budget also includes a significant increase to the Five Cities Fire Authority (FCFA) of $755,000 in FY 2023-24 and $836,000 in FY 2024-25 from the City’s current cost of $2 million. A fire services report was prepared for the City from consultant Baker Tilly outlining the FCFA forecast through FY 2028-29 using various scenarios. The proposed budget includes Staffing Plan A-4 with a City contribution of $2.77 million for FY 2023-24 and $2.85 million for FY 2024-25 pursuant to Council direction. The proposed budget also assumes revenue from the Oceano Community Services District and the County in each fiscal year for the continued provision of services to Oceano through a contract with the new Joint Powers Authority while the Local Area Formation Commission divestiture process is ongoing.

The recommended budget for FY 2023-25 represents a significant investment in City resources to implement Council Goals and address community needs while maintaining sufficient reserves.

The proposed General Fund budget for FY 2023-24 is balanced with a surplus of approximately $400,000 and ending reserves of approximately 42% while the projected General Fund budget for FY 2024-25 will show a budget deficit of approximately $600,000 that will need to be closed using reserves to balance the budget. This will bring the ending reserves down to 37%, which is still well above the Council’s reserve goal of 25% to provide sufficient reserves for emergencies or unforeseen events or needs. This level of reserves reflects the City’s cautious fiscal management. However, long-term forecasts illustrate the need to reduce General Fund operating and/or capital expenditures to close a funding gap while maintaining sufficient reserves unless additional revenues are generated to support community needs. Staff will bring further information to the Council this next fiscal year about addressing this long-term funding need.

Staff Report: FY 2023-25 Proposed Budget and FY 2023-28 Five Year CIP Page 3 June 12, 2023

FISCAL IMPACT
There is no direct fiscal impact from this agenda item as the budget will be approved at a subsequent meeting. The FY 2023-25 Proposed Budget contains comprehensive financial information at the fund level (Fund Information section) and departmental and program information (Department Budgets).

ALTERNATIVES
The Council has the following alternatives to consider:

1. Review the FY 2023-25 Proposed Budget and FY 2023-28 Capital Improvement Program and provide direction to staff to finalize the budget for adoption on June 26, 2023; or

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A public hearing notice was published in New Times and posted accordingly in the locations for public notices.

Attachments

1. FY 2023-25 Proposed Budget (Printed copies provided to City Council under separate cover). An electronic copy is available on the City website.

Proposed Budget
FY 2023-24 & 2024-25

GROVER BEACH

CALIFORNIA

CITY OF
Attachment 1

Table of Contents

CITY OVERVIEW
City Manager’s Letter of Transmittal 1
City Council Goals 11
Major City Goals Work Programs 13
City Government 19
Profile of Grover Beach 21

FINANCIAL TRENDS
Financial Trends 25
Employer Pension Contribution Rates 32

BUDGET OVERVIEW
City Operating Budget 35
CIP Project Budget 46
Schedule of Interfund Transfers 47
Full Time Equivalents Personnel 49

DEPARTMENT BUDGETS
Administrative Services 51
City Manager’s Office 55
Community Development 60
Parks & Recreation 66
Police 69
Public Works 74
Non-Departmental 82

FUND INFORMATION
General Fund 83
Capital Projects Fund 86
Special Revenue Funds 87
Enterprise Funds 100

CAPITAL PROJECTS
Executive Summary 104
Revenue Funds 105
Projected Revenue Summary 107
Expenditure Summary by Project Category 108
Completed Capital Projects 110
Current Projects 112
Unfunded Needs 145

APPENDIX
Financial Policies 149
Gann Appropriation Limit 155

CITY

OVERVIEW
City Overview
1 CITY MANAGER’S LETTER OF TRANSMITTAL
Honorable Mayor and Council Members:

I am pleased to present the total budget of $36.2 million for the City of Grover Beach for the upcoming fiscal year 2023-24 including a General Fund budget of $18.9 million along with a total budget of $31.7 million for the subsequent fiscal year 2024-25 with a General Fund budget of $18.8 million. As we close our current fiscal year 2022-23, I would like to take a moment to recognize our substantial progress and accomplishments in addressing community needs and implementing the Council’s policy direction, while acknowledging future challenges we face.

Over the past two fiscal years, pandemic conditions changed dramatically with the availability of a vaccine along with compliance with public health guidance which enabled our community to continue return to more normal activities. However, economic impacts of the pandemic, labor shortages, high inflation and national economic uncertainty continues to be difficult for the local business community. Over the past year, the City has continued to be a leader in supporting local businesses during difficult times in partnership with the South County Chambers of Commerce completing a third “Buy Local” program in February and March 2023 to encourage spending at local restaurants, breweries, and wineries, which have had a particularly hard time with these economic headwinds. This program generated $28,000 in funding for local businesses with just over $2 in customer spending for every $1 in public funds invested. The City also implemented a Small Business Façade Improvement grant program in 2022, which provided at total of $75,000 in grants of up to $10,000 per business to improve building exteriors, signage, and outdoor seating areas, benefitting local businesses and improving the aesthetic appeal of the City’s commercial areas.

The City of Grover Beach has also made significant strides in building an even stronger and better community in alignment with Council Goals. Over 93% of the tasks identified for FY 2022-23 Major City Goals at mid-year were completed or in progress. Streets continue to be repaired throughout the City as we have improved nearly 2/3 of local streets (259 blocks) through Measure K-14 bond funding approved by voters in 2014 and are excited to begin construction on the West Grand Avenue Streetscape project between 4th and 8th Streets in Summer 2023. We have continued to install new water and sewer lines, sidewalks, bike lanes and ADA accessible corner ramps to continue improving infrastructure in our community. Economic development continues to be one of the City’s top goals and in addition to the business support mentioned earlier, the City continued its partnership with the South County Chambers City Overview
2 of Commerce on economic development services, focusing on expanding the City’s tourism marketing through the Visit Grover Beach brand, which was nominated for a Visit California Poppy Award for Best Overall Destination Brand Identity (under $1 million) in 2022. The hotel project located at 950 El Camino Real is in building plan review with groundbreaking slated to occur in late 2023. The developer of the Grover Beach Lodge also continues their work with State Parks on construction plans and the developer of the hotel project at 1598 El Camino Real is working on their construction plans for submission to the City.

With regards to housing, the City has worked diligently this year to implement our Development Code and Land Use Element updates the Council approved in 2022. Additionally, the City implemented Accessory Dwelling Unit template plans to streamline the permitting process for those units. In continued efforts to make housing more affordable and accessible, the City approved development applications for a mixeduse property on 4th Street and West Grand Avenue, which will provide 35 housing units and new commercial space to revitalize this core intersection in the City commercial corridor, as well as other developments which will provide additional housing units. The City also continues to work with People’s Self-Help Housing to build a 53-unit affordable housing project on vacant City-owned and private property near the corner of South 13th Street and West Grand Avenue. Addressing homelessness is also a top priority for the City with substantial progress this year on creating additional shelter space for unhoused individuals with the opening of the Cabins for Change project on 16th Street and Longbranch, in partnership with the County of San Luis Obispo and the 5Cities Homeless Coalition (5CHC), which is providing temporary housing and wraparound services for 20 unhoused individuals in the South County area. In addition, the City utilized American Rescue Plan Act funds to purchase property at 4th Street and Barca to serve as a future site for additional shelter housing and entered a long-term lease with 5CHC to operate a facility there. Along with these efforts, the City adopted a camping ordinance in March 2023 to regulate camping in public and private spaces in the City, within legal limits, and continues cleaning encampment areas and removing trash and debris.

Lastly, public safety is a core responsibility of local government and we have made significant strides this past year in filling vacant positions for Police Officers and Community Services Technicians, and upgrading and expanding our police technology. We are also working toward a plan to continue a well-maintained and equipped fire and emergency medical service, after the divestiture of the Oceano Community Services District (OCSD) from the Five Cities Fire Authority (FCFA) including reconstituting the FCFA as a two-city agency with Arroyo Grande.

City Overview
3 In addition to these achievements, the City has continued its prudent fiscal stewardship maintaining a strong financial foundation over this past year. The City’s revenues continue to be strong overall particularly with sales tax, property tax, and transient occupancy tax. Sales tax is now the City’s highest revenue source due in large part to passage of the Measure F-20 1% sales tax increase in November 2020.

Sales tax revenues are projected to plateau in FY 2023-24 and then return to a more consistent growth in FY 2024-25 and the next couple of years. Cannabis revenues continue to decline given continued uncertainty in the cannabis industry from State regulation and taxation and extent of illegal cannabis businesses and are projected to be approximately $330,000 lower than expected. However, this tax will still produce $1.3 million in general revenue to support City projects and services and is generated through 13 current commercial cannabis businesses operating in a safe and responsible way. The City’s revenues coupled with the strong fiscal management of City departments are projected to produce a year-end General Fund surplus of approximately $438,000 with ending reserves totaling $6.9 million or 42% of operating expenditures. This level of reserves is higher than the Council’s policy goal of 25% of operating expenditures and provides sufficient reserves for emergencies or unforeseen needs given continued uncertainty in the economy. As we complete this fiscal year, revenues continue to be strong given the strength of the local economy and level of local and visitor spending at local businesses including cannabis businesses and position the City to make significant investments in this upcoming budget.

City Council Goals
Since 2017, the City Council has conducted an annual goal-setting process to determine the highest priorities for the City organization to implement in the upcoming fiscal year. On March 13, 2023, the Council adopted a set of Council Goals for FY 2023-25, following a goal-setting workshop on March 6, 2023. The Council considered the long-term financial forecast, implementation of FY 2021-23 Council Goals, and input on potential goals from Advisory bodies and the community through an online survey and in-person forum.

The Council was asked to submit up to seven goal suggestions responding to the following question: Of all the many things that we would like to do for Grover Beach, which are the most important things for the coming two fiscal years? After carefully reviewing, rating, and ranking the candidate goals, the Council adopted a highly focused set of collective goals organized into three priority categories:
 Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to achieve them should be included in the FY 2023-25 budget.
o Economic Development and Community Promotion
o Housing and Homelessness
City Overview
4 o Public Safety
o Street Maintenance and Complete Streets
 Other Important Goals. These goals are important for the City to accomplish and resources to achieve them should be made available in the FY 2023-25 budget where feasible. o Building and Facility Improvements
o Community Engagement
o Water Supply and Resiliency
 Address as Resources Permit. While it is desirable to achieve these goals, doing so over the next two years is subject to resource availability.
o City and School Partnership
o Code Compliance
o Environmental Sustainability
The Council is to be commended for its continued strategic focus on key priority areas to drive City resources and investments to best address community needs. Building on the Council’s goals for FY 2023- 25, staff has developed work programs for each of the four Major City Goals to specify what will be done over the next year in carrying out those goals. Adoption of the revised FY 2023-25 budget will serve as the approval of these work programs which staff will begin implementing in the new fiscal year and providing progress reports to Council throughout the year.

FY 2023-25 Budget Overview
The budget for the fiscal year 2023-25 reflects a balanced budget and healthy reserves, but with future financial challenges. The City continues to make significant community investments made possible by projected General Fund revenues as highlighted below:
 Sales Tax - Projections were determined using the most recent report from the City’s sales tax consultant which estimates that sales tax revenues will plateau in FY 2023-24 with a minor increase of 0.6% from the current FY 2022-23 and then return to a more consistent growth level of 3% in FY 2024-25.
 Property Tax - The most recent estimates provided in January 2023 by San Luis Obispo County Tax Assessor’s Office project a 4% increase next FY 2023-24 from the current FY 2022-23 and a 3% increase in FY 2024-25. Property tax has been a consistent revenue source for the City and average annual increases have been 4.6% over the past five years.  Cannabis Tax - Projections for FY 2023-24 of $1,326,000 is calculated off a 2% increase from the current FY 2022-23 based on revenues received through the third quarter. It is projected that the City will receive $1.3 million, which is $332,000 lower than the $1,632,000 originally budgeted. Staff City Overview
5 continues to recommend caution with cannabis tax revenues and continues to recommend onetime uses for this revenue source.  Transient Occupancy Tax (TOT) - TOT is projected to increase 3% each year based on the added short-term rentals (STRs) and increased travel activity that has picked up over the last two years that were impacted by the pandemic. The projections assume $900,000 for FY 2023-24 and $927,000 for FY 2024-25. TOT does not include future hotel projects until construction begins but it should be noted that construction is expected to begin on the 950 El Camino Real hotel project in FY 2023-24 based on information from the developer.
 Franchise Tax – Franchise fees for FY 2023-24 of $735,000 include the new transoceanic fiber optic cable revenue of $100,000 that was delayed for the last two fiscal years but is expected to be collected. For FY 2024-25, the proposed franchise fees of $948,000 include a total fiber optic cable revenue of $300,000.

In terms of expenditures, the budget for FY 2023-25 continues to make significant investments in addressing community needs in alignment with the Council Goals. The budget includes a General Fund contribution of almost $1.5 million in FY 2023-24 and $1.5 million in FY 2024-25 for the City’s Capital Improvement Program (CIP) as presented to the Council on March 27, 2023. The Council provided direction to incorporate these amounts into the final CIP included with the adopted budget which will enable the City to carry out additional capital projects along with funding from Measure K-14 street bonds, Water and Wastewater Enterprise Funds, and other funds. The CIP also includes funding from the Water Fund for the City’s share of costs for the Central Coast Blue regional recycled water project to provide sustainable water supplies for years to come. The budget includes General Fund operating budget recommendations of $290,000 in net expenses after revenue offsets for FY 2023-24 compared with the budget in FY 2022-23 including one new position and $458,000 in net expenses after revenue offsets in FY 2024-25. These funds are proposed to be allocated with a continued focus on City Council goals.

Below is a summary of notable items included in the adopted budgets over the next fiscal year listed by each of the four Major City Goals:

Economic Development and Community Promotion
 Tourism development. The budget for FY 2023-25 includes $50,000 in contract funding with the South County Chambers of Commerce to provide tourism marketing services for the Visit Grover Beach tourism brand, website, and social media. While not a specific budget item, staff will begin oversight and construction management for a permitted hotel project at 950 El Camino Real, which is expected to begin construction in late 2023, and will continue to invest time to support the City Overview
6 permitting process related to an approved hotel project at 1598 El Camino Real as well as the Grover Beach Lodge project, for which the developer has submitted plans to State Parks given its location at Pismo State Beach. These projects will add approximately four hundred new rooms to the City.

The Council previously approved limited funding support for the 1598 El Camino Real project consistent with the City’s policy on providing financial assistance for catalyst economic development projects. The City does not include the projected revenues from hotel developments in financial forecasts until construction begins.
 Commercial cannabis regulatory costs. Approximately $300,000 in ongoing costs in the Community Development, Police, and other departments is recommended in FY 2023-24 and FY 2024-25 to provide staff capacity and resources to effectively regulate the growing commercial cannabis industry in Grover Beach as part of our economic development work. With 13 businesses currently operating, the City will continue to carry out needed activities to help ensure a safe and regulated commercial cannabis industry with these regulatory costs covered by commercial cannabis permit revenue.

Housing and Homelessness
 Housing development. The City will continue to process development applications for two West Grand Avenue mixed-use projects, which are currently in process and will provide additional housing options in the City. Additionally, the City will continue to coordinate permitting with People’s SelfHelp Housing (PSHH) and Housing Authority of San Luis Obispo County (HASLO) as the developers of an approved affordable housing development on South 13th Street near West Grand Avenue, which will provide for low and very low-income units. Staff will also continue to promote the City’s Pre-Designed Accessory Dwelling Unit (ADU) program for further housing options.  Homelessness support. The City will continue its efforts to partner with the 5Cities Homeless Coalition (5CHC), the County of San Luis Obispo, and other agencies and stakeholders on addressing homelessness in our community. In FY 2021-22, the Council approved the purchase of property on South 4th Street using funds from the City’s ARPA allocation and approved a land lease with 5CHC to develop a homeless housing facility on that site. The City will continue to partner with 5CHC and other local agencies on efforts to address homelessness in South County including exploring temporary or permanent shelter spaces to help unhoused individuals find housing and connect to services. In addition to creating shelter space, the City approved a camping ordinance which became effective in April 2023 to regulate camping on public and private property in the City and will continue to pursue encampment cleaning and trash removal work along with outreach at affected locations such as the El Camino Real area.

City Overview
7 Public Safety
 Fire and emergency medical services. The work program for fiscal year 2023-24 includes implementing a new Five Cities Fire Authority (FCFA) Joint Powers Authority with the City of Arroyo Grande, including the formation of a new governance and executive management structure and a temporary service contract with the Oceano Community Services District (OCSD). The City will also work with Arroyo Grande and the Local Area Formation Commission to review the OCSD divestiture request and potential service impacts to the FCFA.
 Police improvements and needs. The FY 2023-24 budget includes funding for a Health and Wellness Program for Police Department employees and enhanced technologies to improve patrol vehicle cameras, license plate readers, community cameras and police radios.

Street Maintenance and Complete Streets
 Measure K-14 street projects. The FY 2023-24 budget includes nearly $2.3 million in Measure K-14 funding for construction and design. The first project (CIP 2295-16) is a 17-block section of streets that includes portions of Ramona, Front Street, Saratoga, Beckett, and N. 2nd Street The design for the second project (CIP 2295-17) is included in FY 2023-24 and is a 15-block project that includes portions of 9th Street, Brighton, N. 11th Street, N. 12 Street, Ramona, Alma Court, and Moss Beach Court. The first project is due to begin construction in October 2023 with the second project scheduled to complete design in January 2024.
 Improvements to major streets. The budget for FY 2023-24 includes $1.5 million for construction of the West Grand Avenue Streetscape project from 4th Street to 8th Street and $1.8 million to start construction of the North 4th Street repair project from West Grand Avenue to Oceanview Avenue.

Staff will continue to advance major streets projects as funding and workload allows in addition to Measure K-14 street projects and other infrastructure improvements. The five-year Capital Improvement Program identifies the annual investment the City is making in improving these major streets traveled upon by residents, businesses, and visitors.  Sidewalk improvements. Sidewalk repairs and infill are also funded in this adopted budget to improve pedestrian accessibility in our community. The budget also includes $100,000 in new funding in FY 2023-24 for constructing infill sidewalks through private-public partnerships in conjunction with the Measure K-14 street projects CIP 2295-16 and 2295-17.

Overall, the General Fund budget for FY 2023-24 will be balanced with revenues of $19.4 million and expenditures of $18.9 million for a surplus of approximately $438,000. The projected budget for FY 2024- 25 is balanced using reserves to cover the revenue shortfall of $600,000 (revenues of $18.2 million less City Overview
8 expenditures of $18.8 million). The two-year budget is anticipated to produce ending reserves of approximately 42% of operating expenditures in FY 2023-24 and 37% in FY 2024-25 compared with the Council’s reserve goal of 25%. This level of reserves reflects the City’s cautious fiscal management and provides sufficient reserves for emergencies or unforeseen needs given economic uncertainties. However, beginning in FY 2024-25 the General Fund budget will annually produce a deficit that would need to be closed using reserves. Long-term projections illustrate the need to reduce General Fund operating and/or capital expenditures in order to close this funding gap while maintaining sufficient reserves unless additional revenues are generated to support community needs.

Table 1 -- Updated General Fund Projections
As expressed throughout this letter, the budget for FY 2023-25 represents a significant investment in City resources to implement Council Goals and address community needs while maintaining sufficient reserves.

The community’s investment as expressed through passage of Measure F-20 in November 2020 and the Council’s leadership in establishing the commercial cannabis industry to create jobs and generate tax revenue have positioned the City to carry out an extensive list of improvements that support and enhance the quality of life in our community. However, several factors, including the increased cost of fire and emergency medical services and other increases in the cost of doing business represent a challenge for the City in future fiscal years. There continue to be uncertainties and challenges facing the City described

FY 2021-22
Actual
FY 2022-23
Original
FY 2022-23
Estimated
FY 2023-24
Budget
FY 2024-25
Budget
Beginning Reserves $ 5,344,700 $ 6,937,300 $ 6,937,300 $ 6,650,342 $ 6,946,154 REVENUES:

Revenues/Transfers In 17,832,000 18,728,000 17,964,300 19,365,517 18,214,967 EXPENDITURES:

Operating Expenditures 15,373,900 16,205,900 15,535,258 17,234,158 16,932,139 CIP/Debt Service 134,200 168,000 109,825 102,547 296,619 Transfers Out/Other 589,300 2,090,000 1,089,175 1,591,000 1,600,000 TOTAL EXPENDITURES 16,097,400 18,463,900 16,734,258 18,927,705 18,828,758 ANNUAL SURPLUS (GF Reserves
used to cover GAP) $1,734,600 $264,100 $1,230,042 $437,812 ($613,791) Wastewater Fund Repayment (142,000) (142,000) (142,000) Estimated CIP Carryover (1,375,000)
Ending Reserves $ 7,079,300 $ 7,201,400 $ 6,650,342 $ 6,946,154 $ 6,190,363 Percent of Operating Expenditures 51% 49% 48% 42% 37%
City Overview
9 below including the overall economic environment, continued uncertainties with cannabis revenue, and fostering a continued sense of community in a time of change and uncertainty.

Overall Economic Environment
The City’s budget has recovered well from the economic impacts of the COVID-19 pandemic and the City did not experience a significant degree of revenue loss during the pandemic given our residential property tax base and the diversification of the City’s revenue sources. The City also experienced a sizeable influx of tourists to Grover Beach along with other coastal communities which led to the City’s highest level of transient occupancy tax revenue received in FY 2021-22. The positive economic conditions and the degree of fiscal stimulus in the economy such as ARPA funds will position the City and other communities to use public funding to make significant improvements to quality of life. However, there are significant regional economic changes on the horizon that we must plan for including the pending closure of the Diablo Canyon Power Plant and Phillips 66 refinery, and potential elimination of off-highway vehicle usage at the Oceano Dunes State Vehicular Recreation Area. There are also numerous economic uncertainties to navigate such as global economic impacts from the war in Ukraine and the continued high rate of inflation that affects the cost of living along with supplies and equipment. We also need to be mindful that some members of our community are still struggling given the depth of specific economic impacts in certain industries and may need financial assistance for housing, utilities, transportation, childcare, and other needs. The City has demonstrated a high degree of empathy and support for community members and this effort is important to continue in our recovery from the pandemic and economic impacts.

Continued Uncertainties with Commercial Cannabis Revenue This is a continued area of uncertainty for the City given the nature of the commercial cannabis industry as it continues to transition to a fully legal and stable industry statewide. The City’s stable financial outlook has been due in part to the revenues from the commercial cannabis industry along with inherent stability in one of the City’s largest revenue sources (property tax revenues). The commercial cannabis tax is expected to generate $1.3 million in revenues in FY 2022-23 and cannabis-related sales tax revenues also contribute to the City’s financial position. Grover Beach is a leader in establishing a successful commercial cannabis industry and the annual tax revenues continue to outperform initial estimates prior to establishing the industry. However, there are numerous uncertainties with these revenues given the tenuous nature of the legal cannabis industry and market implications with nearby cities establishing cannabis businesses which point to the need to consider opportunities such as onsite consumption lounges. The City continues to take a cautious approach with the use of additional general revenues City Overview
10 generated from cannabis taxes with these funds primarily used for one-time needs such as capital projects rather than ongoing programs or services.

Conclusion
Grover Beach is a vibrant, resilient, and caring community. The COVID-19 pandemic was a once-in-ageneration crisis that we all experienced and through these challenging times, our community has supported one another while demonstrating the “can do” spirit that exemplifies the city. Grover Beach also does not shy away from bold ideas and uncharted waters but rather embraces opportunities that can lead to a better community and improved quality of life despite our challenges. The FY 2023-25 budget embodies this sense of opportunity and investment to help our community continue to flourish and prosper as a beautiful community on the Central Coast to live, work, and play. I would like to recognize the outstanding work of our City staff in putting the FY 2023-25 budget together particularly our Administrative Services Director Deanne Purcell and Deputy City Manager Kristin Eriksson. We will continue to address challenges and pursue opportunities with the City Council’s leadership and City staff’s execution and work with our community to create an even stronger Grover Beach for years to come.

Respectfully submitted,
Matthew Bronson
City Manager

City Overview
11 CITY COUNCIL GOALS

MAJOR CITY GOALS
Economic Development and Community Promotion
Strengthen and maintain a business-friendly environment, implement strategies that build upon existing efforts in business retention with a focus on vulnerable sectors and populations, pursue business attraction and commercial development especially on West Grand Avenue, expedite permit processing, and promote tourism and hotel development.

Housing and Homelessness
Work with developers and non-profits in efforts to increase housing availability with a focus on affordable housing; continue partnerships with regional agencies and organizations to address homelessness and related sheltering issues in the City and region, including supporting completion and operation of temporary shelter facilities in the City.

Public Safety
Ensure quality police, fire, and emergency medical services by providing proper support, including implementation of a new fire services structure and funding, training and leadership development resources to meet service demands and growing challenges in such areas as homelessness, behavioral health, and social justice; and continue to engage with regional agencies, local businesses and the community in these efforts.

Street Maintenance and Complete Streets
Continue to complete Measure K-14 street improvements on arterials and local streets; create a maintenance plan and related funding for improved streets; pursue opportunities to design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, streetlights, crosswalks, trees/landscaping and other traffic calming design strategies.

OTHER IMPORTANT GOALS
Building and Facility Improvements
Support City programs, operations, and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved, and expanded to meet community needs into the future; strategically develop priorities and funding plans by evaluating deferred maintenance, safety, health, accessibility, energy, and long-term needs.

City Overview
12 Community Engagement
Continue a strong commitment to transparency and public participation in our City government through existing and new programs, initiatives, and events designed to encourage community members, including youth, engagement in key community decisions; formalize our practices by adopting and implementing a public participation plan and policies.

Water Supply and Resiliency
Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long-term water resiliency.

ADDRESS AS RESOURCES PERMIT
City and School Partnership
Establish a framework for communication between City officials and local public TK-12 education partners that operate within the City supporting a Community Schools model that provide benefits for our youth, families, and the community 24/7 through more intentional alignment. Maximize each jurisdiction’s existing facilities and programs in partnership that benefits all and discuss potential parallel policy options for shared adoption.

Code Compliance
Prioritize the City’s code compliance program to quickly and effectively enforce our existing ordinances, including tree related issues like maintenance and removal permits.

Environmental Sustainability
Pursue carbon neutral solutions to develop a greener Grover Beach through plans, policies, and City operations

City Overview
13 MAJOR CITY GOALS WORK PROGRAMS

ECONOMIC DEVELOPMENT AND COMMUNITY PROMOTION
Goal Statement
Strengthen and maintain a business-friendly environment, implement strategies that build upon existing efforts in business retention with a focus on vulnerable sectors and populations, pursue business attraction and commercial development especially on West Grand Avenue, expedite permit processing, and promote tourism and hotel development.

STAFF LEAD(S): Matthew Bronson, City Manager; Kristin Eriksson, Deputy City Manager; Megan Martin, Community Development Director

TASK DATE

1. Continue to work with the Chamber to enhance the Visit Grover Beach tourism brand, website and social media outreach
July 2023

2. Continue to collaborate with regional partner agencies to identify economic development strategies to support the regional economy
July 2023

3. Work with Chamber to conduct outreach with local businesses on key issues particularly along West Grand Avenue corridor July 2023

4. Facilitate development opportunities to help recruit and retain businesses July 2023

5. Begin oversight of construction for hotel project at 950 El Camino Real upon initiation of construction July 2023

6. Process building permits for the 1598 El Camino Real hotel project upon submittal by the developer July 2024

7. Continue involvement in Grover Beach Lodge hotel project with lead permitting agency State Parks and issue City permits for initial offsite construction upon plan submittal and approval July 2023

8. Continue to conduct outreach and regulatory oversight of commercial cannabis industry and process development
applications including onsite consumption areas upon submittal July 2023

City Overview
14 KEY POLICY/OPERATIONAL ISSUES
 Revising the economic development services contract with the South County Chambers for Commerce to focus on tourism marketing
 Continued focus on hotel development projects and the commercial cannabis industry give economic activity and development opportunities along with additional tax revenues  Continued City’s involvement with regional economic development strategies to ensure community economic vitality in the future
 Improvements to the West Grand Avenue to revitalize and enhance the City’s main commercial corridor

HOUSING AND HOMELESSNESS
Goal Statement
Work with developers and non-profits in efforts to increase housing availability with a focus on affordable housing; continue partnerships with regional agencies and organizations to address homelessness and related sheltering issues in the city and region, including supporting completion and operation of temporary shelter facilities in the City.

STAFF LEAD(S): Megan Martin, Community Development Director; Matthew Bronson, City Manager; John Peters, Chief of Police

TASK DATE

1. Process development applications for West Grand Avenue housing and mixed-use projects upon submittal by property owners
July 2023

2. Coordinate with People’s Self-Help Housing and Housing Authority of San Luis Obispo on permitting of Cleaver & Clark Commons affordable housing project
July 2023

3. Educate developers on options for density bonuses to increase housing availability and provide for affordable housing
July 2023

4. Continue to publicize the City’s Pre-Designed Accessory Dwelling Unit (ADU) program using social media, local
newspapers, and community events
July 2023

5. Monitor and evaluate the effectiveness of the ADU program and make adjustments as needed July 2023

6. Seek Prohousing Designation from the California
Department of Housing and Community Development July 2023 City Overview
15 7. Coordinate with 5Cities Homeless Coalition on development and permitting of a new homeless housing facility on Barca Street.

July 2023

8. Work with 5Cities Homeless Coalition, County, and other agencies on securing one-time and ongoing funding for
homeless facilities and services
July 2023

9. Provide enforcement for updated homeless camping
ordinance and present review of initial results to Council by late 2023
July 2023

10. Conduct cleanings and implement access limitations related to homeless encampments on public property July 2023

KEY POLICY/OPERATIONAL ISSUES
 Continue to follow State and regional housing and homelessness related policies to ensure the General Plan and Development Code supports development of affordable housing in the community.
 Complete improvements to West Grand Avenue to enable additional housing and mixed-use opportunities along the City’s main commercial corridor.  Strengthen relationships with developers, 5Cities Homeless Coalition, and other non-profits to address regional affordable housing and homelessness initiatives.

City Overview
16 PUBLIC SAFETY
Goal Statement
Ensure quality police, fire and emergency medical services by providing proper support, including implementation of a new fire services structure and funding, training and leadership development resources to meet service demands and growing challenges in such areas as homelessness, behavioral health, and social justice; and continue to engage with regional agencies, local businesses and the community in these efforts.

STAFF LEAD(S): John Peters, Chief of Police; Stephen Lieberman, Five Cities Fire Chief

TASK DATE

1. Start a dynamic Health and Wellness Program for Police employees by developing a peer support team and critical incident stress response model
June 2024

2. Create a regional Major Accident Investigation Team (MAIT) with the Police Departments of Arroyo Grande and Pismo Beach July 2023

3. Conduct recruitment of new Police Officers to fill current vacancies July 2023

4. Explore regional partnership opportunities to create a dedicated Mental Health profession position within the South County January 202

5. Add enhanced technologies (hardware and software) to improve patrol vehicle cameras, license plate readers, community cameras and police radios
June 2024

6. Implement new Five Cities Fire Authority (FCFA) Joint Powers Authority Agreement including formation of new governance and executive management structure along with temporary service contract with Oceano Community Services District July 2023

7. Implement FCFA service level changes including recruitment of new positions and contract fire prevention services by
Community Development Department
July 2023

8. Work with Arroyo Grande and County on Local Area Formation Commission review of Oceano fire services divestiture request and potential service impacts to FCFA
July 2023

9. Work with Arroyo Grande to update FCFA service level and budget for FY 2024-25 following completion of LAFCO
divestiture review process.

January 2024

City Overview
17 KEY POLICY/OPERATIONAL ISSUES
 Fill vacant Police Officer positions to ensure sufficient staffing levels.  Work toward accomplishing FY 2023-24 metrics of Police Department Strategic Plan.  Significant time and resources needed in implementing Five Cities Fire Authority changes related to service level and governance.
 Need to continue resolving long-term service and funding issues with fire services including potential County funding for Oceano service.

City Overview
18 STREET MAINTENANCE AND COMPLETE STREETS
Goal Statement
Continue to complete Measure K-14 street improvements on arterials and local streets; create a maintenance plan and related funding for improved streets; pursue opportunities to design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, streetlights, crosswalks, trees/landscaping and other traffic calming design strategies.

STAFF LEAD(S): Greg Ray, Public Works Director; Erin Wiggin, Capital Projects Manager; Gabriel Munoz-Morris, Senior Engineer

TASK DATE

1. Continue to work with PG&E to implement the Street
Lighting Project (CIP 2003) with the first phase on North Oak Park Boulevard
November 2023

2. Complete design and start construction of the sidewalk infill cost sharing program (CIP 2274) for two Measure K-14
projects (CIPs 2295-17 and 2295-17)
February 2023

3. Complete design and start construction of the West Grand Avenue Streetscape Project (CIP 2287) September 2023

4. Start construction of N. 4th Street repair project (CIP 2285) April 2024

5. Complete design and start construction of Measure K-14 project on portions of Ramona, Front, Saratoga, Beckett, and N. 2nd (2295-16)
October 2023

6. Complete design of Measure K-14 project on portions of N. 9 th, N. 11th, N. 12th, Brighton, Ramona, Alma Ct, Moss Ct (CIP 2296-17)
January 2024

KEY POLICY/OPERATIONAL ISSUES
 Need to continue to achieve accelerated pace of projects within the City’s relatively small footprint of approximately two square miles without significant inconvenience to residents and with limited field staff available to provide project utility support.  Need to continue planning for street maintenance work in future Capital Improvement Programs to maintain the City’s streets rehabilitated in recent years.  Incorporating sidewalk infill, traffic calming, and other safety enhancements desired with street improvement work.

City Overview
19 CITY COUNCIL

Karen
Bright
Mayor
Robert
Robert
Mayor Pro
Tem
Daniel
Rushing
Council
Member
Clint
Weirick
Council
Member
Zach
Zimmerman
Council
Member
City Overview
20 EXECUTIVE MANAGEMENT
Matthew
Bronson
City Manager
David
Hale
City Attorney
John
Peters
Chief of
Police
Deanne
Purcell
Administrative
Services
Director
Megan
Martin
Community
Development
Director
Kathy
Petker
Parks and
Recreation
Director
Greg
Ray
Public Works
Director/City
Engineer
City Overview
21 PROFILE OF GROVER BEACH

Location
The City of Grover Beach is in the southern part of San Luis Obispo County on California’s Central Coast.

Grover Beach is bordered by Pismo Beach to the north, Arroyo Grande to the east, unincorporated Oceano to the south, and the Pacific Ocean to the west. The city is adjacent to Pismo State Beach and serves as the northern entry point to the Oceano Dunes State Vehicular Recreation Area. The city covers an area of

2.31 square miles and is midway between San Francisco and Los Angeles approximately ninety miles north of Santa Barbara and 150 miles south of Monterey. The city’s coastal location provides a temperate climate with mild and dry summers and wet winters.

Early History of Grover Beach
Long before the settlement of European explorers, the land now considered the City of Grover Beach was inhabited by the Chumash. The Chumash were skilled fisherman, herbalists, and hunters. Their lands stretched from Paso Robles all the way to the modern city of Malibu. Spanish explorer Juan Rodriguez Cabrillo was the first European to come to Grover Beach, during his voyage in 1542. However, the area was not officially settled by Europeans until 1772, during the Mission San Luis Obispo de Tolosa. The Mission was founded by Father Junipero Serra and is still standing today.

In 1840, Governor Juan B. Alvarado issued an 8,838-acre land grant known as “El Pizmo Rancho” to Jose Ortega. Ortega was a veteran in the Mexican War of Independence and petitioned the Mexican government for the land grant. In 1846, Ortega sold El Pizmo Rancho to Isaac J. Sparks. Local folklore claims that the land was won from Ortega in a game of Monte. Through the years, the area changed ownership many times, and records reflect that John M. Price (founder of Pismo Beach) purchased the land for 477 head of cattle from Jose Ortega in 1850.

City Overview
22 (Original Drawing of “El Pizmo Rancho”)

Founding and Naming the Town
In 1877, 35-year-old D.W Grover purchased a parcel of the original land grant with over $22,000 worth of gold, worth roughly $580,000 today. In August of 1887, Grover filed his plan for the self-named city at the San Luis Obispo Courthouse. The Town of Grover was established the same day. The name of the town officially became the ‘City of Grover City’ in 1959, when the city was incorporated. A public vote in 1992 changed the name to its current ‘The City of Grover Beach’ to emphasize its seaside location.

Commercial Development
D.W Grover hoped to create a booming city of vacationers and tourism. In the 1890’s Grover petitioned Southern Pacific to build a train station in his city to attract investors, but Oceano was chosen as the site for the desired railway. Grover and his partner George Gates promoted Grover City as the ‘grandest summer and winter seaside resort on the Pacific Coast.’ While the city did not become a bustling vacation destination during its founder’s ownership, the City flourished in 1934 under Horace V. Bagwell. Bagwell purchased 1,100 acres of land and advertised the city as ‘the home of the average man.’ Bagwell made the city affordable to the working class, and development began to speed up. In the 1940’s the first store opened, followed by the post office. By 1949, the Fairgrove Fire District and the Grover City Water district were established, paving the way for the 1950’s building boom.

City Overview
23 Officially Incorporating the City
An incorporation election on December 21, 1959, showed overwhelming support for the incorporation of the town. Mayor Fay Keen was the first mayor of the new city, and the City Council met for the first time just 7 days after the incorporation election. As the city boundaries were laid out, more opportunities for development arose. The city rapidly filled with restaurants, stores, and homes, becoming the beloved city it is today.

Government
Grover Beach has a Council-Manager form of government with four Council Members serving by district for four-year terms and a directly elected Mayor serving two-year terms. The Mayor and City Council serve as the legislative and policy making body of the City. The City Manager, appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney. There are three active Advisory Boards and Commissions that are appointed by the City Council: Planning Commission; Parks, Recreation, and Beautification Commission; and Citizen Oversight Committee for City Revenue Measures.

Services
The City provides a full range of municipal services. These include police protection, planning, building, water, sewer, street maintenance, and general administrative services. Wastewater treatment is provided to residents by the South San Luis Obispo County Sanitation District, a special district which also includes Arroyo Grande and the Oceano Community Services District. Fire protection services are provided by the City Overview
24 Fire Cities Fire Authority, a joint powers authority comprised of Grover Beach and Arroyo Grande. In addition, the City maintains five parks and two community recreation centers.

Community Demographics
Based on 2020 Census data, the city’s population is 12,701 which is a reduction from the population of 13,156 in the 2010 Census. The median household income for Grover Beach residents is $77,637 compared with San Luis Obispo County median of $82,514 and California median of $84,097. 9.4% of residents live below the poverty line compared with 13.1% in San Luis Obispo County and 12.3% in California. The owneroccupied housing unit rate for the City is 54%. The median housing value of owner-occupied housing units is $577,300 and median gross rent is $1,682.

Local Economy
Grover Beach is located on the Central Coast midway between the Bay Area and Southern California and has direct access to a major north-south highway, rail lines with freight trains and inter-city Amtrak service, and public transit routes, and is near the San Luis Obispo County Regional Airport. Grover Beach has the only train station in the South County area with daily Amtrak Pacific Surfliner train service north to San Luis Obispo and south to Santa Barbara, Los Angeles, and San Diego along with connecting bus service. The community is comprised of residential housing stock of all types and at a range of costs, commercial retail businesses along West Grand Avenue serving both residents and tourists, and ninety acres of industrial areas currently comprised of light manufacturing and service businesses. The City is working with private developers to construct three hotels including the beachfront Grover Beach Lodge and partnering with a local Internet provider on a municipal fiber broadband network initially serving industrial and commercial areas. In addition, the City has adopted ordinances allowing commercial cannabis businesses and has entitled approximately thirty retail, manufacturing, testing laboratory, and distribution businesses to date with 13 businesses currently operating. Cannabis businesses have added over two hundred jobs in the past three years and generate approximately $1.3 million in annual cannabis tax revenue for the City.

Financial Trends
25 FINANCIAL TRENDS
SALES TAX REVENUE: LAST TEN YEARS

Sales Tax
Sales tax is now the General Fund’s largest revenue
source at 34% of General Fund revenue. Sales tax
revenue has grown significantly in the last couple of
years due the passing of Measure F-20, 1% transaction
and use tax, approved by voters in November 2020.

Measure F-20 1% transaction and use tax is estimated
to be $2.5 million in FY 2022-23. In addition, inflationary rates and an increase in online sales have also
contributed to the increase in sales tax revenue.

As shown in the chart and table, sales tax revenue
increased in 2023 by 6%. Sales tax revenue has
continued to increase with an average annual increase
over the last five years of 24%.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EST

SALES TAX
Fiscal Year Ending Amount % Change
2014 $ 1,513,647 8.2%
2015 $ 1,630,889 7.7%
2016 $ 1,962,043 20.3%
2017 $ 2,136,375 8.9%
2018 $ 2,116,064 -1.0%
2019 $ 2,565,665 21.2%
2020 $ 2,819,912 9.9%
2021 $ 3,846,967 36.4%
2022 $ 5,649,554 46.9%
2023 EST $ 5,986,000 6.0%
Average Annual % Change
Last 2 Years 26.4%
Last 5 Years 24.1%
Last 10 Years 16.5%
Financial Trends
26 PROPERTY TAX ASSESSED VALUATION: LAST TEN YEARS

Property Tax
Property tax has historically been one of the
General Fund’s most stable revenue sources and
comprises over 31% of General Fund revenues.

Property tax revenue is driven by changes in
assessed value as determined by the San Luis
Obispo County Assessor’s Office. As shown in the
chart and table, assessed valuation has
increased with an average annual increase of

4.6% over the past five years. The FY 2023-24
budget assumes that the City’s property tax
revenues will increase by 4% and by 3% in FY
2024-25.

$-
$500,000
$1,000,000
$1,500,000
$2,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EST

ASSESSED VALUATION TRENDS
Fiscal Year Ending Amount % Change
2014 $ 1,309,746 5.0%
2015 $ 1,392,728 6.3%
2016 $ 1,465,324 5.2%
2017 $ 1,548,746 5.7%
2018 $ 1,627,338 5.1%
2019 $ 1,730,926 6.4%
2020 $ 1,816,655 5.0%
2021 $ 1,901,543 4.7%
2022 $ 1,962,367 3.2%
2023 EST $ 2,040,862 4.0%
Average Annual % Change
Last 2 Years 3.6%
Last 5 Years 4.6%
Last 10 Years 5.1%
Financial Trends
27 CANNABIS TAX REVENUE: LAST FOUR YEARS

Cannabis Tax
Cannabis tax is the City’s third largest tax
revenue generator in the General Fund at 7% in
FY 2022-23. Cannabis revenue increased
significantly from inception FY 2017-18 through FY
2020-21 increasing from $16,000 in the first year
of collection to $2.4 million in FY 2020-21. FY 2021-
22 showed a downturn in revenue as cannabis
businesses begin operating in nearby cities and
the industry in general continues to face
significant pressure from an illegal market that is
not taxed or regulated. The FY 2022-23 revenue
amount represents a decrease of 14.2% as
cannabis sales continue to be sluggish due to the
continued challenges.

$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2018 2019 2020 2021 2022 2023 EST

CANNABIS TAX
Fiscal Year Ending Amount % Change
2018 $ 16,359
2019 $ 953,342 5727.6%
2020 $ 1,936,729 103.2%
2021 $ 2,424,900 25.2%
2022 $ 1,515,600 -37.5%
2023 EST $ 1,300,000 -14.2%
Average Annual % Change
Last 2 Years -25.9%
Last 5 Years 1160.9%
Financial Trends
28 TRANSIENT OCCUPANCY TAX REVENUE: LAST TEN YEARS

Transient Occupancy Tax
Due to the passage of Measure L-18 in November
2018 along with steady growth in TOT, revenue for
FY 2018-19 increased by 16.7%. Due to COVID-19
and the related impact on the tourism industry,
TOT did not see any big increases in FY 2019-20
but has seen significant increases in FY’s 2020-21
and 2021-22 as tourism has picked up with the
waning of the COVID-19 pandemic and additional
TOT revenue has picked up for short-term rentals
(STR). TOT revenue for FY 2021-22 was higher
than what is estimated for FY 2022-23 due to a
one-time collection effort of $95,000 from prior
year where some permitted STRs were not paying
in a timely manner, which has been resolved.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EST

TRANSIENT OCCUPANCY TAX
Fiscal Year Ending Amount % Change
2014 $ 278,500 1.9%
2015 $ 314,300 12.9%
2016 $ 363,400 15.6%
2017 $ 368,700 1.5%
2018 $ 371,200 0.7%
2019 $ 433,249 16.7%
2020 $ 433,500 0.1%
2021 $ 580,400 33.9%
2022 $ 952,200 64.1%
2023 EST $ 874,000 -8.2%
Average Annual % Change
Last 2 Years 27.9%
Last 5 Years 21.3%
Last 10 Years 13.9%
Financial Trends
29 FRANCHISE FEE REVENUE: LAST TEN YEARS

Franchise Fees
This revenue source is comprised of franchises
paid to the City from utilities and private
companies such as Comcast, AT&T, etc.

Franchise fees are stable and have averaged a

3.3% annual increase over the past five years. The
installation of a new trans-oceanic fiber optic
cable was anticipated to add $100,000 in
franchise fees in FY 2022-23 but was delayed.

The increase is expected to be collected in FY
2023-24. An additional $300,000 is expected in
FY 2024-25 after installation of 3 more fiber optic
cables.
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EST

FRANCHISE FEE
Fiscal Year Ending Amount % Change
2014 $ 506,200 8.6%
2015 $ 509,600 0.7%
2016 $ 523,300 2.7%
2017 $ 542,900 3.7%
2018 $ 529,200 -2.5%
2019 $ 555,460 5.0%
2020 $ 585,000 5.3%
2021 $ 600,200 2.6%
2022 $ 619,400 3.2%
2023 EST $ 623,000 0.6%
Average Annual % Change
Last 2 Years 1.9%
Last 5 Years 3.3%
Last 10 Years 3.0%
Financial Trends
30 GENERAL FUND OPERATING COSTS: LAST TEN YEARS

General Fund Operating Costs
The average annual increase in operating costs
has been 8.5% over the last five years due to
increased revenue capacity for City projects and
services. The FY 2023-25 budget includes a
General Fund contribution of $1.5 million in FY
2023-24 and $1.5 in FY 2024-25 to fund capital
projects. FY 2023-24 and 2024-25 budgets also
include an increase in the fire services contract
with Five Cities Fire Authority (FCFA) of $755,000
and $836,000 respectively. The current FCFA
budget of $2 million had not changed since FY
2019-20 due to an agreement that expired in June
2023.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EST
General Fund Operating Expenditures
Fiscal Year Ending Amount % Change
2014 $ 7,170,300 3.5%
2015 $ 7,670,500 7.0%
2016 $ 8,270,000 7.8%
2017 $ 9,129,900 10.4%
2018 $ 10,368,565 13.6%
2019 $ 10,977,200 5.9%
2020 $ 12,131,200 10.5%
2021 $ 13,507,556 11.3%
2022 $ 14,962,253 10.8%
2023 EST $ 15,535,258 3.8%
Average Annual % Change
Last 2 Years 7.3%
Last 5 Years 8.5%
Last 10 Years 8.5%
Financial Trends
31 GENERAL FUND RESERVES: LAST FIVE YEARS
ACTUAL COMPARED WITH 25% POLICY GOAL
General Fund Reserves
The graph depicts the ending reserves for the General Fund over the past four years and the estimate for the current year along with the goal amount based on the Council’s 25% current reserve policy goal. Ending reserves have remained higher than the policy level in recent years given the strong economy and prudent fiscal management focused on cost containment. This scope of reserves adheres to Council’s policy goal to ensure adequate reserves for emergencies or unforeseen circumstances or one-time needs. $0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2019 2020 2021 2022 2023 Estimate
Actual Policy
Financial Trends
32 EMPLOYER PENSION CONTRIBUTION RATES

Pension Cost Increases
A significant cost driver for the City and other cities in the state is pension cost increases. CalPERS has adopted a new amortization policy that shifts from a 30-year to a 20-year amortization period, which means after 20 years the increase in the unfunded liability will be fully paid off, but the increase in normal cost will continue. The chart below shows the ending of the 5-year ramp up in FY 2024-25 which will result in more level payments from year to year with a gradual decline in payments.

CALPERS EMPLOYER CONTRIBUTION RATES:

CLASSIC SWORN EMPLOYEES

0%
10%
20%
30%
40%
50%
60%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Fiscal Year Ending
Financial Trends
33 CALPERS EMPLOYER CONTRIBUTION RATES:

CLASSIC MISCELLANEOUS EMPLOYEES
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Fiscal Year Ending
Financial Trends
34 BUDGET

OVERVIEW
Budget Overview
35 General Fund
$18,927,705
52%
Special Revenue
Fund
$1,457,107
4%
Enterprise Funds
$5,576,742
16%
Capital Improvement
Program
$10,201,500
28%
FY 2023-25 ALL FUNDS

CITY BUDGET

Overview

The City’s budget is a spending plan that is the legal authority to commit financial resources to provide services within Grover Beach. In FY 2021-22, the City shifted from an annual budget to a biennial budget.

The FY 2022-23 total budget is $36,163,054 and includes $18,927,705 in the General Fund, $5,576,742 in Enterprise Funds, and $1,457,107 in Special Revenue Funds. The budget includes $10,201,500 in the Capital Improvement Program (CIP) consisting of funding of $1,491,000 from the General Fund, $4,395,000 from Enterprise Funds, $2,815,500 from Special Revenue Funds and $1,500,000 from the Regional Early Action Planning (REAP) grant. The City’s General Fund budget is approximately 52% of the total budget in FY 2023-24 and provides most of the services commonly associated with city government such as Public Safety, Recreation, Planning, and Public Works. The FY 2023-24 General Fund budget includes $925,000 in American Rescue Plan Act (ARPA) federal stimulus funds to support community needs in recovering from COVID-19.

FY 2023-24

TOTAL EXPENDITURES
$36,163,054

Budget Overview
36 Use of Money and
Property
$467,600
Tax Revenues 1%
$15,014,700
Licenses,Fines 42%
433,700
1%
Other Agencies
$4,654,874
13%
Charges for
Current Services
$6,565,626
18%
Transfers In
2,901,417
8%
*Use of Reserves
$6,125,137
17%
FY 2023-24

TOTAL REVENUE
$36,163,054

*Includes Measure K-14 bonds
issued in prior years are used to
fund current street projects.

Budget Overview
37 The FY 2024-25 total budget is $31,685,292 and includes $18,828,758 in the General Fund, $5,506,057 in Enterprise Funds, and $1,316,477 in Special Revenue Funds. The budget includes $6,034,000 in the Capital Improvement Program (CIP) consisting of funding of $1,500,000 from the General Fund, $2,340,000 from Enterprise Funds and $2,194,000 from Special Revenue Funds.

FY 2024-25

TOTAL EXPENDITURES
$31,685,292

General Fund
$18,828,758
60%
Special Revenue
Fund
$1,316,477
4%
Enterprise Funds
$5,506,057
17%
Capital Improvement
Program
$6,034,000
19%
Budget Overview
38 Use of Money and
Property
$454,700
2%
Tax Revenues
$15,608,200
49%
Licenses,Fines
$443,100
2%
Other Agencies
$1,382,749
4%
Charges for
Current Services
$6,774,431
21%
Transfers In
$2,814,305
9%
*Use of Reserves
$4,207,807
13%
FY 2024-25

TOTAL REVENUE
$31,685,292

*Includes Measure K-14 bonds
issued in prior years are used to
fund current street projects.

Budget Overview
39 GENERAL FUND REVENUE BY SOURCE
FY 2023-24 $18,927,705

GENERAL FUND EXPENDITURES BY DEPARTMENT
FY 2023-24 $18,927,705

Budget Overview
40 Property Tax
31%
Cannabis Tax
7%
Transient
Occupancy
Tax
5%
Other
1%
Charges for
Current
Services
5%
Franchise Fees
5%
Sales Tax
33%
Other Taxes
2%
Licenses &
Permits
2%
Use of Money
and Property
2%
Transfers In
4%
Use of
Reserves
3%
City
Manager's
Office
8%
Administrative
Services
3%
Community
Development
6%
Police
37%
Public Works
9%
Parks and
Recreation
3%
Capital
Improvement
Plan
8%
NonDepartmental
25%
Transfers Out
1%

GENERAL FUND REVENUE BY SOURCE
FY 2024-25 $18,828,758

GENERAL FUND EXPENDITURES BY DEPARTMENT
FY 2024-25 $18,828,758

Budget Overview
41 DEPARTMENT BUDGET COMPARISON
FY 2023-24 - $36,163,054 AND FY 2024-25 - $31,685,292

SUMMARY BY DEPARTMENT
FY 2021-22
Actuals
FY 2022-23
Estimated
FY 2023-24
Budget
FY 2024-25
Budget
Administrative Services $ 1,224,225 $ 1,390,179 $ 1,573,605 $ 1,533,403 City Manager's Office $ 1,322,799 $ 1,299,987 $ 1,448,687 $ 1,500,536 Community Development $ 1,411,187 $ 1,145,152 $ 1,238,496 $ 1,275,685 Parks and Recreation $ 550,091 $ 553,132 $ 570,238 $ 590,831 Police $ 6,170,835 $ 6,127,000 $ 7,378,410 $ 7,031,646
Public Works $ 5,575,954 $ 5,652,381 $ 5,847,190 $ 5,857,476 Non-Departmental $ 4,601,740 $ 4,827,126 $ 5,003,511 $ 5,047,410 Capital Improvement $ 1,349,359 $ 6,495,950 $ 10,201,500 $ 6,034,000 Transfers $ 4,905,057 $ 2,490,837 $ 2,901,417 $ 2,814,305 TOTAL CITY OPERATING BUDGET 27,111,247 $ $ 29,981,744 $ 36,163,054 $ 31,685,292 Budget Overview
42 CITY BUDGET BY FUND

SUMMARY BY FUND
FY 2023-24
BUDGET
FY 2024-25
BUDGET
Fund # General Fund
01 General Fund $ 17,950,977 $ 18,495,279
71 General Fund - Capital Replacement Fund $ 976,728 $ 333,479 TOTAL GENERAL FUND $ 18,927,705 $ 18,828,758
Capital Projects Fund
11 Capital Projects $ 3,515,000 $ 1,974,000
TOTAL CAPITAL PROJECTS FUND $ 3,515,000 $ 1,974,000
Special Revenue Funds:
17 Gas Tax $ 363,000 $ 366,000
18 Local Transportation $ 234,500 $ 184,500
19 Road Maintenance and Rehabilitation $ 299,000 $ 299,000 20 Street Rehabilitation and Repair $ 2,505,312 $ 3,035,377 35 COPS Grant $ 164,000 $ 146,500
43 State Mandated ADA $ 6,000 $ 6,000
53 Fire Protection Development Impact Fee $ 8,000 $ - 55 Wastewater Development Impact Fee $ 85,000 $ - 58 Water Development Impact Fee $ 25,000 $ 25,000 82 Water Conservation $ 13,795 $ 14,100
TOTAL SPECIAL REVENUE FUNDS $ 3,703,607 $ 4,076,477
Enterprise Funds:
80 Wastewater $ 3,667,368 $ 1,720,969
81 Water $ 6,349,374 $ 5,085,088
TOTAL ENTERPRISE FUNDS $ 10,016,742 $ 6,806,057
TOTAL CITY BUDGET $ 36,163,054 $ 31,685,292

Budget Overview
43 GENERAL
FUND
14%
OTHER

SPECIAL

REVENUE
FUNDS
6%
STREET

REHAB AND

REPAIR FUND
22%

WASTEWATER
FUND
19%

WATER FUND
24%

REGIONAL

EARLY ACTION

PLANNING
GRANT
15%
CAPITAL IMPROVEMENT PROJECTS BUDGET FY 2023-24

CIP BUDGET
FY 2023-24
BUDGET
01 General Fund $ 1,491,000
Other Special Revenue Funds (OTHER SRF) 609,000
20 Street Rehabilitation and Repair Fund 2,206,500
80 Wastewater Fund 1,950,000
81 Water Fund 2,445,000
Regional Early Action Planning Grant 1,500,000
TOTAL CIP BUDGET $ 10,201,500
PERCENTAGE OF CIP BUDGET BY FUND – FY 2023-24

Budget Overview
44 CAPITAL IMPROVEMENT PROJECTS BUDGET FY 2024-25

CIP BUDGET
FY 2024-25
BUDGET
01 General Fund $ 1,500,000
Other Special Revenue Funds (OTHER SRF) 374,000
18 Local Transportation Fund (LTF) 100,000
20 Street Rehabilitation and Repair Fund 2,720,000
80 Wastewater Fund 240,000
81 Water Fund 1,100,000
TOTAL CIP BUDGET $ 6,034,000

PERCENTAGE OF CIP BUDGET BY FUND – FY 2024-25

GENERAL
FUND
25%
OTHER

SPECIAL

REVENUE
FUNDS
LOCAL TRANSPORTATION 6%
FUND
2%
STREET

REHAB AND

REPAIR FUND
45%

WASTEWATER
FUND
4%

WATER FUND
18%
Budget Overview
45 CITYWIDE SOURCES OF FUNDING

SOURCES OF FUNDING
FY 2023-24
BUDGET
% OF
BUDGET
FY 2024-25
BUDGET
% OF
BUDGET
Property Tax $ 5,720,200 16% $ 5,876,100 19%
Sales Tax $ 6,144,000 17% $ 6,311,100 20%
Franchise Fees $ 735,000 2% $ 948,000 3%
Transient Occupancy Tax $ 900,000 2% $ 927,000 3%
Cannabis Tax $ 1,326,000 4% $ 1,353,000 4%
Utility Users Tax $ 189,500 1% $ 193,000 1%
Licenses & Permits $ 386,300 1% $ 394,700 1%
Fines $ 47,400 0% $ 48,400 0%
Use of Money and Property $ 467,600 1% $ 454,700 1%
Other Agencies $ 4,654,874 13% $ 1,382,749 4%
Charges for Current Services $ 6,565,626 18% $ 6,774,431 21% Transfers In $ 2,901,417 8% $ 2,814,305 9%
Use of Reserves $ 6,125,137 17% $ 4,207,807 13%
Citywide Sources of Funding $ 36,163,054 100% $ 31,685,292 100%

Budget Overview
46 CIP PROJECT BUDGET

PROJECTED REVENUE SUMMARY
Fund #
FY 2023-24
BUDGET
FY 2024-25
BUDGET
01 General Fund $ 1,491,000 $ 1,500,000
17 Gas Tax Fund 75,000 75,000
18 Local Transportation Fund 150,000 100,000
19 Gas Tax Fund (RMRA) 299,000 299,000
20 Street Rehabilitation and Repair Bond Fund 2,206,500 2,720,000 55 Wastewater Development Impact Fee 85,000 - 80 Wastewater Fund 1,950,000 240,000 81 Water Fund 2,445,000 1,100,000
XX Regional Early Action Planning Grant 1,500,000 - Total: $ 10,201,500 $ 6,034,000

Budget Overview
47 FY 2023-24 INTERFUND TRANSFERS IN

FUNDS OPERATING
COST

ALLOCATION

CAPITAL

TRANSFERS TOTAL
General Fund
General Fund $ 67,750 $ 532,000 $ - $ 599,750
General Fund - Capital Replacement Fund $ 136,667 $ 136,667 TOTAL GENERAL FUND $ 204,417 $ 532,000 $ - $ 736,417
Capital Projects Funds
Capital Projects Fund $ 2,015,000 $ 2,015,000
TOTAL CAPITAL PROJECTS FUNDS $ - $ - $ 2,015,000 $ 2,015,000 Special Revenue Funds
Road Maintenance and Rehabilitation $ 40,000 $ 40,000
TOTAL SPECIAL REVENUE FUNDS $ - $ - $ 40,000 $ 40,000
Enterprise Funds:

Wastewater $ 85,000 $ 85,000
Water $ 25,000 $ 25,000
TOTAL ENTERPRISE FUNDS $ 25,000 $ - $ 85,000 $ 110,000
TOTAL INTERFUND TRANSFERS IN $ 229,417 $ 532,000 $ 2,140,000 $ 2,901,417

INTERFUND TRANSFERS
FISCAL YEAR 2023-24

TRANSFERS IN
FY 2023-24 INTERFUND TRANSFERS OUT

FUNDS OPERATING
COST

ALLOCATION

CAPITAL

TRANSFERS TOTAL
General Fund
General Fund $ 100,000 $ 1,491,000 $ 1,591,000
TOTAL GENERAL FUND $ 100,000 $ - $ 1,491,000 $ 1,591,000 Special Revenue Funds
Gas Tax $ 3,000 $ 75,000 $ 78,000
Local Transportation $ 150,000 $ 150,000
Road Maintenance and Rehabilitation $ 299,000 $ 299,000 State Mandated ADA $ 6,000 $ 6,000
Fire Protection Development Impact Fee $ 8,000 $ 8,000
Wastewater Development Impact Fee $ 85,000 $ 85,000
Water Development Impact Fee $ 25,000 $ 25,000
TOTAL SPECIAL REVENUE FUNDS $ 42,000 $ - $ 609,000 $ 651,000 Enterprise Funds:

Wastewater $ 31,208 $ 171,000 $ 202,208
Water $ 56,209 $ 361,000 $ 40,000 $ 457,209
TOTAL ENTERPRISE FUNDS $ 87,417 $ 532,000 $ 40,000 $ 659,417 TOTAL INTERFUND TRANSFERS OUT $ 229,417 $ 532,000 $ 2,140,000 $ 2,901,417

INTERFUND TRANSFERS
FISCAL YEAR 2023-24

TRANSFERS OUT

Budget Overview
48 FY 2024-25 INTERFUND TRANSFERS IN

FUNDS OPERATING
COST

ALLOCATION

CAPITAL

TRANSFERS TOTAL
General Fund
General Fund $ 56,000 $ 549,000 $ - $ 605,000
General Fund - Capital Replacement Fund $ 170,305 $ 170,305 TOTAL GENERAL FUND $ 226,305 $ 549,000 $ - $ 775,305
Capital Projects Funds
Capital Projects Fund 1,974,000 $ 1,974,000
TOTAL CAPITAL PROJECTS FUNDS $ - $ - $ 1,974,000 $ 1,974,000 Special Revenue Funds
Road Maintenance and Rehabilitation $ 40,000 $ 40,000
TOTAL SPECIAL REVENUE FUNDS $ - $ - $ 40,000 $ 40,000
Enterprise Funds:

Water $ 25,000 $ 25,000
TOTAL ENTERPRISE FUNDS $ 25,000 $ - $ - $ 25,000
TOTAL INTERFUND TRANSFERS IN $ 251,305 $ 549,000 $ 2,014,000 $ 2,814,305

INTERFUND TRANSFERS
FISCAL YEAR 2024-25

TRANSFERS IN
FY 2024-25 INTERFUND TRANSFERS OUT

FUNDS OPERATING
COST

ALLOCATION

CAPITAL

TRANSFERS TOTAL
General Fund
General Fund $ 100,000 $ 1,500,000 $ 1,600,000
TOTAL GENERAL FUND $ 100,000 $ - $ 1,500,000 $ 1,600,000 Special Revenue Funds
Gas Tax $ 3,000 $ 75,000 $ 78,000
Local Transportation $ 100,000 $ 100,000
Road Maintenance and Rehabilitation $ 299,000 $ 299,000 State Mandated ADA $ 6,000 $ 6,000
Water Development Impact Fee $ 25,000 $ 25,000
TOTAL SPECIAL REVENUE FUNDS $ 34,000 $ - $ 474,000 $ 508,000 Enterprise Funds:

Wastewater $ 71,152 $ 177,000 $ 248,152
Water $ 46,153 $ 372,000 $ 40,000 $ 458,153
TOTAL ENTERPRISE FUNDS $ 117,305 $ 549,000 $ 40,000 $ 706,305 TOTAL INTERFUND TRANSFERS OUT $ 251,305 $ 549,000 $ 2,014,000 $ 2,814,305

INTERFUND TRANSFERS
FISCAL YEAR 2024-25

TRANSFERS OUT
Budget Overview
49 FULL TIME EQUIVALENTS PERSONNEL

Budget Overview
50 FY 2023-24 GENERAL FUND OPERATING INCREASES ABOVE $25,000

FY 2024-25 GENERAL FUND OPERATING INCREASES ABOVE $25,000

Department/Description
Non-Departmental GF Expense
Station Alerting (transfer in $8K from Fire DIF Fund) $ One-Time 50,000 Total $ 50,000
Public Works
1 FTE Superintendent ($153K-39% GF, 61% from other funds-hire date estimated to be November 2023) One-Time 40,000
Total $ 40,000
Police
Storage Facility Lease $ 70,000 Ongoing
Various Equipment 50,000 Ongoing
Health and Wellness Program ($20K grant funded) One-Time 30,000 Total $ 150,000
Grand Total $ 240,000
FY 2023-24
Department/Description
Public Works GF Expense
1 FTE Superintendent (39% GF) $ 62,000 Ongoing
Total $ 62,000
Police
6 Patrol Vehicles - 5 Year Lease (Year 1) $ 145,000 One-Time Storage Facility Lease 70,000 Ongoing
Various Equipment 88,000 Ongoing
Total $ 303,000
Grand Total $ 365,000
FY 2024-25

DEPARTMENT

BUDGETS
Department Budgets
51 ADMINISTRATIVE SERVICES DEPARTMENT

MISSION STATEMENT
Provide clear, accurate and timely financial information to City officials and financial management services which enhance the financial health of the City and improve the economic well-being of the community now and in the future.

SERVICES AND STRUCTURE
Operationally, the Administrative Services Department provides the following services:

Accounting and Financial Reporting
Performing the accounting for all the City's financial transactions and coordinating the assisting in the preparation of the annual Audit and Comprehensive Annual Financial Report. The department also prepares State of California and County of San Luis Obispo required annual reports.

Budget
Coordinating the annual operating and capital budget process, including the development of the fee schedule, assisting departments with reports and analysis to ensure expenditures are maintained within budgeted appropriations.

Treasury and Revenue Management
Managing the City's cash and investment to ensure requirements are met and return on invested funds is aligned with the City's investment policy. Administering the Business Tax Certificate and Cannabis Tax programs and monitoring and enforcing collections of other revenue sources.

Accounts Payable
Administering the Accounts Payable process and ensuring vendors are paid timely and accurately. Filing all required regulatory and tax-related documentation in a timely manner.

Payroll
Process bi-weekly payroll for all City's employees, reporting and paying tax obligations, and completing all regulatory reporting requirements.

Department Budgets
52 Information Technology
Work collaboratively with all City departments to deliver the highest quality IT services, infrastructure, and technology consulting possible. Manage the operation, maintenance and support of City technology infrastructure and technology assets.

Utility Billing
Provides customer account services to over 4,800 accounts for water, wastewater and stormwater services provided by the City. Utility bills are mailed every two months to all customers of the city, with one half of the city billed each month.

Debt Service
Manage the City's debt portfolio to ensure adequate funds are available to make principal, interest, and other debt-related payments in a timely manner, as well as ensuring all continuing disclosure requirements.

Risk Management
Identify, evaluate, control, and reduce risks inherent to City operations and services.

FY 2022-23 HIGHLIGHTS
 Prepared FY 2021-22 Annual Comprehensive Financial Report with no findings and an unqualified opinion from the independent auditors
 Worked with investment advisors to continue to diversify the City’s investment portfolio and ensure invested funds are aligned with City’s investment policy  Prepared updated five-year General Fund Financial Forecast  Hired an Accounting Technician III to provide needed assistance, support, and succession planning for the Administrative Services Department
 Received, tracked, and administered the $3.2 million American Rescue Plan Act funds to support community needs
 Started the Enterprise Resource Planning system implementation, including financials, payroll, utility billing, permitting, and planning to be completed in phases through FY 2023-24  Successfully migrated dispatch services to City of Pismo Beach  Started the conversion of records management system for the Police Department, expected to be completed by the end of the year 2023
 Set up portable audio solution for meetings at the offsite facilities, such as Ramona Garden Park and the Community Center
 Implemented various IT projects including replacing core firewall as part of the Pismo Beach dispatch project
 Completed Cyber Security training for IT staff that will safeguard the City and its data networks from malicious actors
Department Budgets
53 FY 2023-24 KEY DEPARTMENT INITIATIVES
 Work on succession planning as part of organizational assessment  Work on desk training manuals as part of the organizational assessment  Stay up to date with current technology through training and education of IT staff to deliver the highest quality IT services, infrastructure, and technology consulting possible  Continue to provide staff education and training for City technology systems and any other areas of needed continuing education
 Complete full implementation of new Enterprise Resource Planning system  Assist the Central Coast Blue JPA with IT and Treasurer needs  Attend conferences and training through financial organizations, such as Government Finance Offers Association and California Society of Municipal Finance Officers FY 2024-25 KEY DEPARTMENT INITIATIVES
 Continue to build strong relationships with neighboring cities on projects such as Central Coast Blue Project and computer-aided dispatch/record management systems  Continue to provide staff education and training for City technology systems and any other areas of needed continuing education
 Attend conferences and training through financial organizations, such as Government Finance Offers Association and California Society of Municipal Finance Officers FY 2021-22 FY 2022-23 FY 2023-24
Goal 170 170 170
Actual 166 169
FY 2021-22 FY 2022-23 FY 2023-24
Goal 2.25
Actual 1.71
Notes: The department began tracking this measure in FY 2022-23.

Nationial Cyber Security Review Score: Continiously increase the city's cybersecurity rating by following industry standard scale maturity between 1-7 with a recommended level of 5.

PERFORMANCE MEASURES
The goal is to meet or exceed the Government Financial Officers Association (GFOA) recommended standard of submitting the ACFR by December 31, or 184 after the fiscal year end to enable and enhance transparency, accountability and integrity.

Notes: No additional notes.

Performance Measure 2: City Cybersecurity Rating
Performance Measure 1: Number of calendar days following year-end until the Annual Comprehensive Financial Report (ACFR) is issued

Department Budgets
54 ADMINISTRATIVE SERVICES DEPARTMENT

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 794,734 $ 911,181 $ 1,002,840 $ 1,033,821 $ 1,058,055 $ 1,105,753 Supplies and Services 337,431 313,044 352,550 324,650 515,550 427,650 Minor Capital 5,985 10,000 31,708
TOTAL EXPENDITURES $ 1,138,150 $ 1,224,225 $ 1,365,390 $ 1,390,179 $ 1,573,605 $ 1,533,403

EXPENDITURES BY PROGRAM
Accounting (131) $ 260,914 $ 301,523 $ 328,539 $ 336,980 $ 307,549 $ 321,959 Utility Billing (132) 669,241 727,150 757,841 784,702 864,023 868,323 Information Technology (134) 207,995 195,552 279,010 268,497 402,033 343,121 TOTAL EXPENDITURES BY PROGRAM 1,138,150 $ $ 1,224,225 $ 1,365,390 $ 1,390,179 $ 1,573,605 $ 1,533,403

FUNDING SOURCES
General Fund $ 468,909 $ 492,576 $ 603,049 $ 600,976 $ 705,082 $ 660,581 Wastewater Fund 324,699 362,251 377,293 391,717 432,038 434,228 Water Fund 344,542 364,898 380,548 392,986 431,985 434,094 Local Transportation Fund 4,500 4,500 4,500 4,500 4,500 TOTAL FUNDING SOURCES $ 1,138,150 $ 1,224,225 $ 1,365,390 $ 1,390,179 $ 1,573,605 $ 1,533,403 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 Administrative Services Director 1.00 1.00 1.00
Finance Manager 1.00 1.00 1.00
Accounting Specialist 1.00 1.00 1.00
Accounting Technician II 2.00 2.00 2.00
Accounting Technician III 1.00 1.00 1.00
Administrative Assistant I 1.00 1.00 1.00
IT Specialist 1.00 1.00 1.00
Assistant IT Specialist 1.00 1.00 1.00
TOTAL POSITIONS 9.00 9.00 9.00
FY 2022-23

Department Budgets
55 CITY MANAGER’S OFFICE

MISSION STATEMENT
The City Manager's Office provides leadership, support, and coordination for City departments; provides policy recommendations to the City Council and implements Council policies and priorities; represents City interests in local and regional issues; and oversees key program areas of citywide nature.

SERVICES AND STRUCTURE
The City Manager's Office consists of the following programs:

City Management
Provide citywide leadership and coordination to the City organization; provide policy development support for the City Council; implement economic development initiatives; and represent the City's interests in local and regional issues.

City Clerk
Ensure transparency of city government to the public in an ethical, professional, and impartial manner regarding legislative and advisory body proceedings; maintain a complete and accurate record of City Council proceedings; preserve official legislative records; manage municipal elections; serve as compliance officer for state and local statutes; and process general liability claims.

Human Resources
Develop, implement, and support programs and processes that add value to the City and its employees; ensure organizational compliance with employment laws and regulations; coordinate employee training and development; and develop policies and procedures to ensure a safe and welcome workplace.

Department Budgets
56 FY 2022-23 HIGHLIGHTS
 Oversaw citywide implementation of FY 2021-23 Council Goals and facilitated the Council’s selection of FY 2023-25 Council Goals
 Coordinated economic development, business assistance services and tourism marketing for the City’s Visit Grover Beach platforms in partnership with the Chamber to support economic vitality in the City
 Provided staff leadership for continued implementation of commercial cannabis ordinances including ordinance revisions allowing onsite consumption lounges  Coordinated citywide response to homelessness issues including support for the Cabins for Change shelter housing project and a future shelter housing project on City-owned property, encampment cleaning and open space access limitations, and development and implementation of a camping ordinance to regulate camping on both public and private property within the city  Formed a Joint Powers Authority with the cities of Arroyo Grande and Pismo Beach for the Central Coast Blue recycled groundwater project and subsequently hired a General Manager and created office space in a vacant building near City Hall
 Led citywide communication and engagement efforts with assistance of outside communications firm
 Coordinated an organizational assessment with an outside consulting firm to assess the City’s structure, resources, and future service needs
 Provided citywide leadership in coordination with Administrative Services in selecting a vendor for the City’s new Enterprise Resource Planning system for implementation beginning this fiscal year  Coordinated recruitment, selection, and orientation for new Commissioners and Council Members as needed
 Developed and implemented Neogov Perform Module to improve the performance evaluation process
 Promoted employee training and development opportunities including all-employee leadership workshop
 Worked with the Administrative Services Department to update citywide policies and procedures  Worked with the City of Arroyo Grande to determine how to restructure fire and emergency medical services given the pending departure of the Oceano Community Services District from the Five Cities Fire Authority

Department Budgets
57 FY 2023-24 KEY DEPARTMENT INITIATIVES
 Oversee citywide implementation of FY 2023-25 Council Goals and development of updated Goals for FY 2024-25
 Provide citywide leadership and project management for implementation of a new Enterprise Resource Planning system
 Coordinate economic development, business outreach and tourism marketing for the City’s Visit Grover Beach platforms in partnership with the Chamber to support economic vitality in the City  Provide staff leadership for continued implementation of commercial cannabis ordinances  Coordinate citywide response to homelessness issues such as development of homeless housing facilities, implementation of the camping ordinance and working with the County and community organizations on homeless services
 Coordinate citywide communication and engagement efforts with assistance of outside communications firm
 Conduct 2023 biennial community survey to gauge resident perceptions on quality of life, City services, communications, and key policy issues facing the city  Conduct an annual employee satisfaction survey
 Provide citywide leadership in enhancing organizational performance through implementation of the recommendations from the organizational assessment by improving systems, processes, structures, and tools
 Promote employee training and development and implement citywide training plan  Implement citywide telecommuting policy to enable flexible schedules while maintaining productivity
 Implement plans for fire and emergency medical services for the Five Cities Fire Authority along with governance changes after the departure of the Oceano Community Services District as an Authority member
FY 2024-25 KEY DEPARTMENT INITIATIVES
 Continue to coordinate economic development, business outreach and tourism marketing for the City’s Visit Grover Beach platforms to support economic development in the City  Continue to coordinate the citywide response to homelessness issues  Continue to coordinate citywide communication and engagement efforts  Conduct an annual employee satisfaction survey
 Coordinate November 2024 municipal election
 Promote employee training and development

Department Budgets
58 Performance Measure 1: Increase in followers to "Visit Grover Beach" social media platforms.

FY 2021-22 FY 2022-23 FY 2023-24
Goal 50%
Actual 161%
FY 2021-22 FY 2022-23 FY 2023-24
Goal 95%
Actual 92%
FY 2021-22 FY 2022-23 FY 2023-24
Goal 10%
Actual 13%
FY 2021-22 FY 2022-23 FY 2023-24
Goal 100%
Actual 87%
Percentage of employees who respond in the annual employee survey that they agree or strongly agree that they are able to raise concerns about work-related issues without fear of retaliation

PERFORMANCE MEASURES
The percentage of increase in followers on the "Visit Grover Beach" social media platforms over the prior calendar year.

Notes: The department began tracking this measure in FY 2022-23.

Performance Measure 2: Employees who feel they are able to raise issues with management.

Performance Measure 4: Timely City Council Meeting Minutes Percentage of City Council Meeting Minutes prepared within 45 business days of the meeting in the prior calendar year.

Notes: The department began tracking this measure in FY 2022-23.

Notes: The department began tracking this measure in FY 2022-23.

Performance Measure 3: Employee Turnover Rate
Percentage of employee turnover per fiscal year. Turnover includes retirements, however, seasonal and volunteer staff are excluded.

Notes: The department began tracking this measure in FY 2022-23.

Department Budgets
59 CITY MANAGER’S OFFICE

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 790,480 $ 784,003 $ 850,320 $ 927,168 $ 952,832 $ 991,836 Supplies and Services 347,453 513,176 435,315 347,200 470,235 483,080 Minor Capital
Debt Service 25,620 25,620 25,619 25,619 25,620 25,620
TOTAL EXPENDITURES $ 1,163,553 $ 1,322,799 $ 1,311,254 $ 1,299,987 $ 1,448,687 $ 1,500,536

EXPENDITURES BY PROGRAM
Legislative (121) $ 246,361 $ 342,463 $ 300,946 $ 318,015 $ 347,700 $ 347,664 City Management (122) 368,444 495,160 534,873 515,229 551,754 621,978 Human Resources (123) 165,656 187,261 201,685 203,710 264,063 240,047 Cannabis Regulatory (124) 383,092 297,915 273,750 263,033 285,170 290,847 TOTAL EXPENDITURES BY PROGRAM 1,163,553 $ $ 1,322,799 $ 1,311,254 $ 1,299,987 $ 1,448,687 $ 1,500,536

FUNDING SOURCES
General Fund $ 1,163,553 $ 1,322,799 $ 1,303,754 $ 1,293,687 $ 1,448,687 $ 1,500,536 Administrative DIF 7,500 6,300
TOTAL FUNDING SOURCES $ 1,163,553 $ 1,322,799 $ 1,311,254 $ 1,299,987 $ 1,448,687 $ 1,500,536 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 City Manager 1.00 1.00 1.00
Deputy City Manager 1.00 1.00 1.00
City Clerk/Executive Assistant 1.00 1.00 1.00
Management Analyst 1.00 1.00 1.00
Deputy City Clerk/Administrative Analyst 1.00 1.00 1.00 TOTAL POSITIONS 5.00 5.00 5.00
FY 2022-23

Department Budgets
60 COMMUNITY DEVELOPMENT

MISSION STATEMENT
Continue to maintain a high level of customer service with responsible and accountable services for residents of the community.

SERVICES AND STRUCTURE
The Community Development Department is responsible for the physical development of the city and administers the city’s land use and building regulations through the implementation of the General Plan, Development Code, and building codes. The role of the Department is to foster public involvement and creativity to assist the public and decision makers in formulating and implementing policies which balance economic, environmental, and social needs to protect the health, safety, and welfare of all people who live, work, and play in the City of Grover Beach. The Department is comprised of five divisions: Building, Code Compliance, Economic Development, Housing and Grant Administration, and Planning. They process development permits, ensure new construction is an asset to its surroundings, verify the safety and maintenance of buildings, property, and neighborhoods through compliance, education, and cooperation with other City Departments and public agencies. Its staff is committed to providing quality services that are responsive, innovative, and helpful.

Building Division
The Building Division provides construction and inspection services through a contract with a building services consultant. The division reviews project plans, issues permits, and provides inspection services of building and structures in compliance with California’s building, fire, mechanical, electrical, plumbing, energy, and disabled access codes, as well as city ordinances to ensure a safe and livable community. The Building Division responds to citizen concerns regarding illegal construction and substandard conditions (living or dwelling) through enforcement of the established building codes and standards.

Code Compliance
The Code Compliance Division enforces the City's municipal codes related to property maintenance, zoning, and building code violations to promote, preserve, and maintain an attractive community. Duties of the division include addressing quality of life issues and problems involving property maintenance by abating hazardous conditions which threaten the life, health, safety, and welfare of the public; administering a fair and unbiased enforcement program to correct violations of municipal and other codes; issuing administrative citations and pursuing other legal remedies as necessary and authorized by local or Department Budgets
61 state law; and working in partnership with businesses and property owners to obtain voluntary code compliance.

Housing
The Housing Division recognizes its role in promoting a variety of housing types to meet the changing needs, resources, and conditions in the community. This division collaborates with community non-profit organizations which provide specialized programs and projects benefiting its citizens. It manages the federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program which provides first time homebuyer assistance, owner occupied rehabilitation loans and other programs that benefit low-income households. The division also monitors the existing affordable housing inventory to ensure eligibility requirements are met. Management of these grants and implementation of the grant programs is supported through a contract with a consultant.

Planning
The Planning Division is responsible for implementing the General Plan by ensuring that development projects are consistent with the goals, policies, and programs outlined in the General Plan and by ensuring that development projects are consistent with the Grover Beach Development Code and applicable state laws. The Planning Division reviews all development permits, including Use Permits, Subdivision applications, and projects requiring environmental review. The Planning Division provides technical analysis of development permit applications and makes recommendations for consideration by the Planning Commission and City Council regarding all land use issues. The Planning Division also serves the public by responding to public inquiries regarding zoning and development.

FY 2022-2023 HIGHLIGHTS
 Completed a Land Use Element and Development Code update to implement Housing Element programs
 Completed implementation of the sign ordinance update  Completed update to the Safety Element
 Completed Code updates to improve implementation of the code compliance program  Completed development of Accessory Dwelling Unit pre-designed building plans  Expedited permit processing for significant economic development projects including commercial cannabis and hotel projects
 Updated the Subdivision Ordinance
Department Budgets
62 FY 2023-2024 KEY DEPARTMENT INITIATIVES
 Implement Land Use Element and Development Code updates including development of checklists, website update, staff training, and developer outreach
 Conduct annual review of Development Code
 Apply for “Pro-Housing Designation” from State Department of Housing and Community Development
 Oversee the building permit process for the affordable housing project on South 13th Street (Cleaver property)
 Coordinate with 5Cities Homeless Coalition on the permitting and construction of a homeless housing facility on City-owned property on South 4th Street  Continue to support California State Parks with the Grover Beach Lodge project  Initiate an update to the Circulation Element to comply with SB 743  Initiate update to the Noise Element
 Initiate Local Coastal Plan Update
 Assist and support the City Manager’s Office with the new Enterprise Resource Planning system  Conduct an audit of the City’s Short-Term Rental Ordinance to inform any necessary updates  Support the Central Coast Blue Joint Power’s Authority in the consolidated permitting and local permitting process for the project
 Continued support of the city’s economic development policies to assist existing businesses and attract new businesses
FY 2024-2025 KEY DEPARTMENT INITIATIVES
 Support California State Parks with the Grover Beach Lodge project  Complete an update to the Circulation Element
 Complete an update to the Noise Element
 Complete an update to the City’s Local Coastal Plan
 Conduct annual review of Development Code

Department Budgets
63 FY 2021-22 FY 2022-23 FY 2023-24
Goal 10
Actual 33 12
FY 2021-22 FY 2022-23 FY 2023-24
Goal 132
Actual 139 120
FY 2021-22 FY 2022-23 FY 2023-24
Goal 205
Actual 200 185
FY 2021-22 FY 2022-23 FY 2023-24
Goal 1000 1087
Actual 1167 988

PERFORMANCE MEASURES
Performance Measure 1: Number of Entitlements Approved
Entitlements (discretionary projects) approved/issued.

Notes: Significant decrease in issued entitlements based on Development Code Update. For example, six Planning Commission meetings cancelled due to lack of discretionary items.

FY 2022-23 is projection based on recent approvals and upcoming PC dates.

Performance Measure 2: Number of Over the Counter Permits Issued Over the counter permits issued: demo interior walls, demo residential units, demo for unpermitted work, re-roof, electrical, mechanical, plumbing permits.

Notes: Goals not available for FY 2021-22 or FY 2022-23.

Performance Measure 3: Number of Non-Over the Counter Permits Issued Non-OTC permits issued: electrical PV system or car chargers, fire alarm, suppression, grading/stockpile, residential addition, alteration, new SFR, new ADU, residential conversion to ADU, commercial conversion to residential, commercial addition, commercial tenant improvement, sign permits
Notes: Goals not available for FY 2021-22 or FY 2022-23.

Performance Measure 4: Inspections Performed
Number of Inspections Performed
Notes: Goals not available for FY 2021-22.

Department Budgets
64 FY 2021-22 FY 2022-23 FY 2023-24
Goal 15
Actual 10
FY 2021-22 FY 2022-23 FY 2023-24
Goal 175
Actual 231 200
FY 2021-22 FY 2022-23 FY 2023-24
Goal 210
Actual 202 200
FY 2021-22 FY 2022-23 FY 2023-24
Goal 90%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal 75%
Actual
Notes: PM not measured FY 2021-22 or FY 2022-23.

Performance Measure 9: Email and Telephone Response Time Percent of email and telephone calls returned within 24 hours.

Notes: PM not measured FY 2021-22 or FY 2022-23.

Notes: Goals not available for FY 2021-22. Actual not available for FY 2021-22.

Performance Measure 6: Number of Code Compliance Cases Opened Number of new cases.

Notes: Goals not available for FY 2021-22 or FY 2022-23. FY 2022-23 'Actual' is projected. Goal reflects lower value to demonstrate overall citywide improvement in compliance.

Performance Measure 7: Number of Code Compliance Cases Closed Number of cases closed. Includes cases that may have been opened in previous fiscal year.

Notes: Goals not available for FY 2021-22 or FY 2022-23. FY 2022-23 'Actual' is projected. FY 2023-24 reflects 10% increase.

Performance Measure 8: Inspection Request Turnaround Times Percent of inspection requests comleted within 48 hours.

Performance Measure 5: Average length of plan review
Average number of days for plan check review by Building, Planning, and Public Works

Department Budgets
65 COMMUNITY DEVELOPMENT

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 712,659 $ 742,500 $ 732,017 $ 891,752 $ 773,696 $ 810,885 Supplies and Services 304,003 668,687 422,800 253,400 464,800 464,800 TOTAL EXPENDITURES $ 1,016,662 $ 1,411,187 $ 1,154,817 $ 1,145,152 $ 1,238,496 $ 1,275,685

EXPENDITURES BY PROGRAM
Planning (141) $ 547,071 $ 843,958 $ 773,301 $ 691,522 $ 776,398 $ 801,399 CDBG (142) 159,662 157,459 22,243
Building (144) 223,671 313,804 289,575 314,273 350,765 355,269 Code (145) 86,258 95,966 91,941 117,114 111,333 119,017 TOTAL EXPENDITURES BY PROGRAM 1,016,662 $ $ 1,411,187 $ 1,154,817 $ 1,145,152 $ 1,238,496 $ 1,275,685

FUNDING SOURCES
General Fund $ 857,000 $ 1,253,728 $ 1,154,817 $ 1,122,909 $ 1,238,496 $ 1,275,685 Non-Entitlement CDBG Fund 159,662 157,459 22,243
TOTAL FUNDING SOURCES $ 1,016,662 $ 1,411,187 $ 1,154,817 $ 1,145,152 $ 1,238,496 $ 1,275,685 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 Community Development Director 1.00 1.00 1.00
Senior Planner 1.00 1.00 1.00
Associate Planner 1.00 1.00 1.00
Assistant Planner 1.00 1.00 1.00
Code Compliance Officer 1.00 1.00 1.00
Administrative Assistant II 0.25 0.25 0.25
TOTAL POSITIONS 5.25 5.25 5.25
FY 2022-23

Department Budgets
66 PARKS AND RECREATION

MISSION STATEMENT
The Grover Beach Parks and Recreation Department is committed to providing or facilitating quality recreational services, including programs, classes, special events, and facilities to all members of the community in a courteous and efficient manner.

SERVICES AND STRUCTURE
Operationally, the Parks and Recreation Department provides the following services:

Recreation Administration Services
Coordinates the department’s administrative services that support the operations of areas such as Parks, Recreation, and Beautification Commission, park improvement planning, customer service, park and facilities reservations, marketing, and budget.

Recreation/Community Center Facilities Services
Facilitate reservations in an efficient manner with utmost respect with the public for use of community centers and parks. Provides recommendations for park and facility improvements.

Recreation and Community Services
Provides programs of recreational, instructional, and special event activities for the public utilizing community centers and parks.

FY 2022-23 HIGHLIGHTS
 Worked closely with the Parks, Recreation and Beautification Commission to provide input regarding Parks Capital Improvement Projects and recreation programs to the City Council  Worked with community partners including regional, private, and nonprofit entities to enhance and develop new programs and special events
 Sponsored and implemented numerous community events including holiday events and the summer concert series
FY 2023-24 KEY DEPARTMENT INITIATIVES
 Build on existing relationships, partnerships, and volunteers to develop trending recreation programs, park improvements and the benefits of public parks Department Budgets
67  Continue investing in park infrastructure and maintenance  Promote the benefits of recreation programs and public parks in our community while providing innovative recreation programs, facilities, playgrounds, classes, and park amenities  Work with community partners including regional, private, and nonprofit entities to enhance and develop new programs
 Develop process for evaluating parks programs, activities, and events to evaluate cost recovery and attendance
FY 2024-25 KEY DEPARTMENT INITIATIVES
 Build a robust volunteer recruitment, training and recognition program and partnerships with other agencies to increase recreations programs and enhance special events  Develop a Parks department strategic plan
 Update the City parks master plan to address needed improvements and enhancements and create a plan to implement the master plan
FY 2021-22 FY 2022-23 FY 2023-24
Goal 327
Actual 132 298
FY 2021-22 FY 2022-23 FY 2023-24
Goal 885
Actual 412 843
Increase in the total number of registrations for classes each calendar year.

Notes: No additional notes.

PERFORMANCE MEASURES
Performance Measure 1: Percentage of increase of Parks facility rentals Increase in total facility rental agreements signed each calendar year.

Notes: The large increase in actuals between FY 2021-22 and FY 2022-23 is due to the lifting of pandemic restrictions.

Performance Measure 2: Percentage of increase in the number of participants in

Department Budgets
68 PARKS AND RECREATION

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 247,058 $ 295,234 $ 288,287 $ 335,301 $ 358,488 $ 373,881 Supplies and Services 88,863 254,857 213,000 217,831 211,750 216,950 TOTAL EXPENDITURES $ 335,921 $ 550,091 $ 501,287 $ 553,132 $ 570,238 $ 590,831

EXPENDITURES BY PROGRAM
Recreation (171) $ 127,759 $ 210,441 $ 222,744 $ 253,438 $ 266,130 $ 276,726 Parks Facilities (172) 78,562 80,716 92,848 93,607 89,016 91,767 Community Services (173) 129,600 258,934 185,695 206,087 215,092 222,338 TOTAL EXPENDITURES BY PROGRAM 335,921 $ $ 550,091 $ 501,287 $ 553,132 $ 570,238 $ 590,831

FUNDING SOURCES
General Fund $ 327,461 $ 545,861 $ 477,287 $ 540,532 $ 570,238 $ 590,831 Parks Construction Fund 8,460 4,230 9,000
Parks Facilities DIF 7,500 6,300
Recreation Facilities DIF 7,500 6,300
TOTAL FUNDING SOURCES $ 335,921 $ 550,091 $ 501,287 $ 553,132 $ 570,238 $ 590,831 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 Parks and Recreation Director 1.00 1.00 1.00
Recreation Coordinator 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00
TOTAL POSITIONS 3.00 3.00 3.00
FY 2022-23

Department Budgets
69 POLICE

MISSION STATEMENT
At the Grover Beach Police Department, we serve to contribute to a wholesome community environment in which individuals may work, play, prosper, raise families, and otherwise pursue their legitimate goals without fear of criminal or civil disorder.

VISION STATEMENT
We, as members of the Grover Beach Police Department, are dedicated to providing the best public safety service which reflects our community's superior quality of life. We are focused on cooperative efforts involving the individual citizen, their neighborhood, and the Department members. This is a reflection of our community's endeavor to sustain a sense of safety and security.

VALUES STATEMENT
As we focus on our vision and pursue our mission, we pledge the following values as of utmost importance for public service while not excluding other principles.

Service
To provide each individual of Grover Beach with responsive and humane law enforcement which promotes security, peace of mind, and tranquility in our Community.

Ethics
We occupy a position of public trust and base our decisions upon moral as well as practical concerns while always accepting responsibility for our actions.

Respect
For the uniqueness of each individual, holding sacred the principle of human dignity; this being a truth for each citizen of the community and each member of the Department. By nurturing a sense of family within the Department, recognizing our people are our greatest and most important asset. For diverse cultural values while fostering open communication necessary to share ideas.

Department Budgets
70 Vision
That the community maintains its satisfying quality of life including a sense of being secure while enjoying the amenities of Grover Beach, however, always anticipating the changing needs of the City and Successfully meeting those needs.

Integrity
Being the benchmark of an ethical individual and Department, in thought and deed, we adhere to sincerity and honesty, while avoiding deception, expediency, artificiality, or shallowness which encompasses the courage to perform our duties.

Courtesy
To all we come in contact within both the spoken and unspoken word, realizing conflict resolution begins with cooperation and mutual understanding.

Experience
Experience is the journey in search of excellence through training, developing the confidence to innovate, explore non-traditional methods of community service and law enforcement; and efficiently manage public resources anchored in the philosophy of community-oriented policing and problem solving.

Department Motto
"Committed to Our Community"

The Grover Beach Police Department is a 24/7 comprehensive community policing department divided into two service units: Field Operations and Support Services.

The Patrol Bureau is staffed with 17.5 officers and 2.5 Community Service Technicians. The officers work 12-hour patrol shifts staffed with a minimum of two officers with most shifts having between three and four officers on duty at one time. Shift staffing is based on the day of the week, the time of the day and the call volume history. In 2022, Patrol completed 24,703 calls for service, a 12.6% increase over 2021, and took 2,160 reports from community members.

The Support Services unit is managed by one (1) Police Commander who oversees the Detective Bureau, Records Bureau, and Administration tasks. The Commander supervises six personnel, consisting of one (1) Detective Sergeant, two (2) Detectives, two (2) Records/Property Technicians and one (1) Police Management Analyst.

Department Budgets
71 The Grover Beach Police Department Detective Bureau consists of one full-time Detective Sergeant, two full-time Detectives and one Police Management Analyst that investigate crimes ranging from petty thefts to homicides. For 2022, the Detective Bureau investigated 159 cases. The Detective Bureau has one fulltime Detective assigned solely to the Cannabis Regulatory Program for the city.

The Records Bureau is staffed by two Full-Time Records/Property Technicians who processed over 3,842 reports for 2022. The Records Bureau is responsible for reporting all crime statistics to various State and Federal law enforcement agencies, filing police reports with the District Attorney for prosecution and processing front counter requests for assistance from our community members.

FY 2022-23 HIGHLIGHTS
 Created the most technologically advanced Unmanned Aerial System (Drone) response team in San Luis Obispo County.
 Purchased a Mobile Command Vehicle to respond to major incidents and emergencies.  Enhanced the Community Services Technician program by adding 1.5 positions that increased neighborhood responses to minor calls for service and code compliance matters  Responded to 24,703 calls for service, a 12.6% increase over 2021  Reduced violent crimes by 21% and reduced Property Crimes by 17% over 2021.  Reduced Traffic Collisions by 8% over 2021
 Customer Service Surveys of over seven hundred people that interacted with our officers showed a 90% satisfaction rate.
 Worked with other City staff and cannabis industry representatives to continue safe operations of the commercial cannabis industry in the city
 Coordinated homeless outreach and assistance with multiple non-profit and governmental agencies to reduce the vagrancy behavior in the city
 Engaged the community on the Police Department social media platforms that consist of Facebook, Instagram, Twitter, Nextdoor and Ring Neighbors allowing the department to communicate with over 15,500 followers
 Carried out a Tobacco Control grant program to deter tobacco use and sales to minors

Department Budgets
72 FY 2023-25 KEY DEPARTMENT INITIATIVES
In line with the City Council's goals, the Police Department will champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
 Start a dynamic Health and Wellness Program for Police Department employees.  Expand our Community Engagement by increasing our youth outreach, creating a District Officer Program, and participating in more community events. Work with the Police Departments of Arroyo Grande and Pismo Beach to create a new Major Accident Investigation Team for the Five Cities area.
 Recruit new Police Officers to fill the current four vacant officer positions.

FY 2021-22 FY 2022-23 FY 2023-24
Goal 95% 95% 95%
Actual 95.40% 90%
FY 2021-22 FY 2022-23 FY 2023-24
Goal 100% 100% 100%
Actual 95% 87%
FY 2021-22 FY 2022-23 FY 2023-24
Goal 33% 66% 90%
Actual 33% 75%
Performance Measure 2:Maintain 23 Sworn Staff positions Filled and Deployed on Duty.

PERFORMANCE MEASURES
Performance Measure 1: Achieve a Police Department Customer Satisfaction rating of 95% or higher each year.

Customer satisfaction rating on responses to surveys conducted through SPIDRTech Software on response to calls for service.

Notes: None.

Notes: None.

Percentage of days of the year the department is able to recruit and retain 23 sworn staff members and who are available for service.

Notes: Goal Completed.

Performance Measure 3: Percentage of officers who have received updated training in Crisis Intervention, De-escalation, Implicit Bias and Principled Policing Concepts Percentage of officers assigned to complete the training as department resources can provide.

Department Budgets
73 POLICE

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 4,577,141 $ 4,390,762 $ 4,576,136 $ 4,211,688 $ 4,840,627 $ 5,158,243 Supplies and Services 622,133 1,088,685 1,282,450 1,468,998 1,614,055 1,644,674 Minor Capital 215,743 618,007 55,000 372,933 855,000 15,000 Debt Service 107,192 73,381 144,981 73,381 68,728 213,729 TOTAL EXPENDITURES $ 5,522,209 $ 6,170,835 $ 6,058,567 $ 6,127,000 $ 7,378,410 $ 7,031,646

EXPENDITURES BY PROGRAM
Support Services (191) $ 500,132 $ 600,773 $ 546,746 $ 789,004 $ 818,668 $ 842,863 Operations (192) 3,813,216 3,975,927 3,903,771 3,803,415 4,902,472 4,469,923 Investigations (193) 274,921 518,118 393,210 433,890 605,047 635,455 Communications & Records (194) 933,940 1,076,017 1,214,840 1,100,691 1,052,223 1,083,405 TOTAL EXPENDITURES BY PROGRAM $ 5,522,209 $ 6,170,835 $ 6,058,567 $ 6,127,000 $ 7,378,410 $ 7,031,646

FUNDING SOURCES
General Fund $ 5,186,710 $ 5,550,583 $ 5,826,086 $ 5,760,801 $ 6,305,682 $ 6,671,417 Equipment Replacement Fund 73,381 444,528 144,981 273,381 908,728 213,729 COPS Grant Fund 262,118 175,724 80,000 86,518 164,000 146,500 Police DIF 7,500 6,300
TOTAL FUNDING SOURCES $ 5,522,209 $ 6,170,835 $ 6,058,567 $ 6,127,000 $ 7,378,410 $ 7,031,646 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 Police Chief 1.00 1.00 1.00
Commander 2.00 2.00 2.00
Sergeant 5.00 5.00 5.00
Senior Police Officer 4.00 4.00 4.00
Police Officer 10.00 10.00 10.00
Community Services Technician I 1.00 1.00 1.00
Communications Supervisor 1.00 1.00 1.00
Lead Comm. & Records Technician 1.00 1.00 1.00
Communications & Records Technician 5.00 5.00 5.00
Records/Property Technician 2.00 2.00 2.00
Administrative Secretary 1.00 1.00 1.00
Detective 3.00 3.00 3.00
Reserve Level 1 0.60 0.60 0.60
TOTAL POSITIONS 36.60 36.60 36.60
FY 2022-23

Department Budgets
74 PUBLIC WORKS

MISSION STATEMENT
To provide reliable, cost-effective and responsive water, wastewater and storm water services; to maintain and improve city facilities, streets, parks, vehicles and equipment in order to assure their beneficial use for the community; and to provide development review services with a goal to implement City Municipal and Development Codes in a manner that encourages investment in the community while assuring adherence to adopted standards.

OVERVIEW
The Public Works Department is separated into two divisions: Maintenance and Operations, and Engineering Services. Maintenance and Operations oversees the water, wastewater, and stormwater systems as well as all public infrastructure and facilities. Engineering services provide review of development applications, review and approval of all capital improvements, management of regional resources and regulatory compliance.

SERVICES AND STRUCTURE
The two divisions are responsible for various programs. The Maintenance and Operations Division operates, maintains, constructs, and improves the City's streets, water, sanitary sewer and storm water systems, facilities, parks, and City vehicles and equipment. The Engineering Services Division provides for regulatory compliance, traffic engineering, design, and construction management services to maintain and improve the City's sewer and storm drain systems, streets, parks, and facilities as well as development review services for private developments. This division also provides coordination with regulatory agencies and management of local and regional resources.

Maintenance Operations
The Maintenance and Operations Division is responsible for the water distribution and treatment system, the wastewater collection system, the stormwater collection system and maintenance and repairs to all City infrastructure which includes streets, sidewalks, bike paths, signs and markings, parks, playgrounds, street landscaping, street trees, street sweeping contract services and contract traffic signal and street light maintenance services. The Division is also responsible for maintenance of all City vehicles and equipment.

Department Budgets
75 Engineering Services
The Engineering Services Division includes four functions: Engineering Design, Development Review, Resource management and Regulatory Compliance.

1. Engineering Design provides design and construction management services for capital improvement projects to improve the City's infrastructure including parks and facilities, streets, water, sewer, and storm drain systems.

2. Development Review provides for engineering review and inspection of all privately funded public improvements within the City's right-of-way as well as regulatory compliance for private grading and drainage.

3. Resource Management involves participation in and coordination with regional resource management groups and agencies for resources such as surface water, groundwater, and reclaimed wastewater.

4. Regulatory Compliance implements programs to meet regulatory requirements for wastewater collection and pretreatment, water quality, and air quality and solid waste collection and recycling.

5. Regulatory Compliance implements programs to meet regulatory requirements for wastewater collection and pretreatment, water quality, and air quality and solid waste collection and recycling.

FY 2022-23 HIGHLIGHTS
 Completed design of Phase 1 of the Ramona Garden Park Rehabilitation project  Continued to advance the Corporate Yard Master Plan process  Began work to relocate the City vehicle shop into a more suitable space  Continued work on the citywide accessibility improvements  Completed the Facilities Conditions and Needs Assessment  Successfully implemented projects using the sidewalk infill cost-sharing program  Completed Sidewalk Infill project for FY 2022-23
 Finalized West Grand Avenue Streetscape from 4th to 8th streets project  Began construction of Measure K-14 Phase 15 project
 Began design of Measure K-14 Phase 16 and 17 projects  Continued development of the Central Coast Blue recycled water project and created office space for JPA staff
 Improved water system operation by installing upgraded mains, additional valves and replacing water meters
 Began water reservoir roof repair project
 Completed Police Department vehicle storage project and parking lot paving  Completed FCFA Station improvements including flooring, cabinets, and restrooms  Completed design of Sewer System Upgrades project
Department Budgets
76  Began work on Ramona Garden Park Utility Undergrounding project  Completed review on major development projects (1598 El Camino Real, 402 West Grand Avenue, Grover Beach Lodge)
 Secured vendor and began implementation of electronic filing system and GIS system for City asset management
 Completed citywide sewer video inspection and completed repairs on identified deficiencies  Completed modifications to the City Sewer Management Plan and successfully enrolled for continued permit coverage
 Completed cleanups, fencing and access modifications to ECR encampment areas  Recruited new Maintenance Workers
 Initiated training program for Maintenance and Utility operations and successfully trained new water operations employees
 Implemented additional recommendations from the 2017 Development Review study (Standard Plan Updates, Development Review staffing, Updated service contracts, development of standard checklists, updated stormwater management guidelines)
 Implemented water conservation measures during Stage 3 drought declaration (mandatory conservation and penalties, cash for grass, fixture retrofits) before reverting back to Stage 1 voluntary compliance

FY 2023-24 KEY DEPARTMENT INITIATIVES
 Continue to scan record plans and implement electronic filing system and GIS system for City asset management
 Continue focus on planting trees in parks and on major corridors  Continue to improve the condition of streets and striping with a focus on bike lanes  Complete design of second and remaining phases of Ramona Park upgrades  Continue commitment and actions to removing accessibility barriers city-wide  Complete PG&E design of street light infill project on Oak Park Boulevard  Complete FY 2023-24 sidewalk infill work and implementation of public/private partnerships  Begin Construction of N. 4th Street Rehabilitation project  Complete construction of West Grand Avenue Enhancement project, 4th to 8th Streets  Complete construction of Measure K-14 Phases 16 project (Ramona, Front, Saratoga, Beckett, North 2nd)
 Complete design of Measure K-14 Phases 17 project (N. 9th, N. 11th, N. 12th, Brighton, Ramona, Alma, Moss)
Department Budgets
77  Continue development of Central Coast Blue recycled water project  Install additional water main zone valves to improve operations and reduce shutdowns  Complete FY 2023-24 Water Meter Replacement program and begin development of automated meter reading system
 Complete water reservoir roof repairs
 Complete construction on sewer main upgrades to accommodate existing and new development  Complete remaining sewer lift station upgrades
 Complete sewer system repairs to existing mains
 Pursue grant funding for Ramona Park Rehabilitation project  Continue to implement recommendations from Organizational Assessment  Continue to develop and implement department training programs  Continue development review improvements including ongoing upgrades to City Standards and Specifications
 Further implementation of Asset Management program and additional asset inputs

FY 2024-25 KEY DEPARTMENT INITIATIVES
 Continue to scan record plans and implement electronic filing system and GIS system for City asset management
 Continue focus on planting trees in parks and on major corridors  Continue to improve the condition of streets and striping with a focus on bike lanes  Continue commitment and actions to removing accessibility barriers city-wide  Complete sidewalk FY 2024-25 sidewalk infill and implementation of public/private partnerships  Begin construction of N. 4th Street Rehabilitation project  Complete construction of West Grand Avenue street repair improvements from 11th Street to Oak Park Boulevard
 Complete construction of Measure K-14 Phase 16 project (Ramona, Front, Saratoga, Beckett, North 2nd)
 Complete construction of Measure K-14 Phase 17 project (N. 9th, N. 11th, N. 12th, Brighton, Ramona, Alma, Moss)
 Complete design and construction of Measure K-14 Phase 18 project (light maintenance streets citywide)
 Continue development of Central Coast Blue recycled water project  Complete design of 16th Street water booster station upgrades Department Budgets
78  Complete FY 2024-25 Water Meter Replacement program and begin development of automated meter reading system
 Complete construction of sewer main upgrades for existing flows  Pursue grant funding for Ramona Park Rehabilitation project  Continue to implement recommendations from Organizational Assessment  Continue to develop and implement department training programs  Continue development review improvements including ongoing upgrades to City Standards and Specifications
 Further implementation of Asset Management program and additional asset inputs

FY 2021-22 FY 2022-23 FY 2023-24
Goal 90%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal 90%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal 90%
Actual
Notes: Department began tracking this measure in FY 2022-23. Weather, unknown conditions and project modifications may result in schedule and/or cost changes to a project.

PERFORMANCE MEASURES
Performance Measure 1: Percentage of Development Applications returned on schedule Pecentage of development applications returned to the applicant within the City-identified 10-day review standard.

Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 2: Timely responses to inquiries
Percent of customer calls returned within one day.

Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 3: Capital Improvement Program projects completed on time and within budget
Percent of projects completed within the estimated timeframe and within the original budget estimate.

Department Budgets
79 FY 2021-22 FY 2022-23 FY 2023-24
Goal 90%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal 83%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal 85%
Actual
FY 2021-22 FY 2022-23 FY 2023-24
Goal <5
Actual 2 1
FY 2021-22 FY 2022-23 FY 2023-24
Goal <2
Actual 0 0
Number of sewer system backups resulting in overflows in the prior fiscal year Notes: N/A
Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 7: Number of unplanned water service interruptions Number of unplanned water service interruptions in the prior fiscal year.

Notes: N/A
Performance Measure 8: Number of sewer system failiures Performance Measure 4: Percentage of maintenance requests responded to within one week Percentage of maintenance service requests that receive a response and the work order is processed within one week of receipt.

Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 5: Percentage of monthly park and landscape surveys with an acceptable rating Percentage of monthly park and landscape surveys that are rated "good" or better based on the following scale: Poor (greater than 10 deficiencies: missing or dead landscape, visible weeds, damaged irrigation, damaged facilities); Good (five to ten visible deficiencies) Excellent (less than 5 deficiencies).

Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 6: Timely repair of reported potholes or sidewalk damage Percentage of pothole or sidewalk damage complaints repaired within one week of receipt of the complaint.

Department Budgets
80 PUBLIC WORKS

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 1,651,097 $ 1,734,176 $ 1,812,279 $ 1,864,454 $ 1,985,917 $ 2,135,359 Supplies and Services 2,900,041 3,533,887 3,184,625 3,428,184 3,317,850 3,334,075 Minor Capital 76,696 185,418 144,300 78,300 262,500 55,000 Debt Service 128,854 122,473 281,443 281,443 280,922 333,043 TOTAL EXPENDITURES $ 4,756,688 $ 5,575,954 $ 5,422,647 $ 5,652,381 $ 5,847,189 $ 5,857,477

EXPENDITURES BY PROGRAM
Wastewater (161) $ 353,395 $ 402,483 $ 313,970 $ 619,039 $ 532,957 $ 348,218 Water (162) 2,408,233 2,427,988 2,732,297 2,675,853 2,865,576 2,916,172 Storm Water (163) 258,798 266,655 330,884 274,538 282,761 292,060 Facility Maintenance (164) 914,572 1,238,036 1,051,935 1,119,874 1,256,619 1,358,357 Streets (165) 765,623 1,149,524 939,983 911,630 854,580 886,016 Corporation Yard (166) 46,802 79,977 40,951 36,193 40,901 42,554 Water Conservation (167) 9,265 11,291 12,627 15,254 13,795 14,100 TOTAL EXPENDITURES BY PROGRAM 4,756,688 $ $ 5,575,954 $ 5,422,647 $ 5,652,381 $ 5,847,189 $ 5,857,477

FUNDING SOURCES
General Fund $ 1,233,232 $ 1,598,736 $ 1,290,761 $ 1,417,861 $ 1,493,287 $ 1,556,801 Equipment Replacement 21,808 53,339 60,000 30,000 55,000 106,750 Waste Water Fund 612,193 669,139 629,854 880,977 815,717 640,278 Water Fund 2,408,232 2,427,986 2,724,797 2,669,552 2,865,578 2,916,171 Gas Tax Fund 199,834 250,123 309,450 340,000 285,000 288,000 Local Transportation Fund 18,199 78,890 80,000 50,000 80,000 80,000 Water Conservation Fund 9,265 11,291 12,627 15,254 13,795 14,100 Subsidized Senior Transportation Fund 1,088 1,000
Street Rehabilitation and Repair Fund 252,837 485,450 284,158 223,537 238,812 255,377 Transportation DIF 7,500 6,300
Storm Water DIF 7,500 6,300
Wastewater DIF 7,500 6,300
Water DIF 7,500 6,300
TOTAL FUNDING SOURCES $ 4,756,688 $ 5,574,954 $ 5,422,647 $ 5,652,381 $ 5,847,189 $ 5,857,477 FY 2022-23

Department Budgets
81 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2022-23 FY 2023-24 FY 2024-25 Public Works Director 1.00 1.00 1.00
Administrative Analyst - Confidential 1.00 1.00 1.00
Capital Improvement Project Manager 1.00 1.00 1.00
Associate Engineer (underfilled - Assistant Engineer) 1.00 1.00 1.00 Senior Engineer 1.00 1.00
Engineering Tech. 1.00 0.00 0.00
Public Works Supervisor 1.00 1.00 1.00
Public Works Superintendant 1.00 1.00
Maintenance Worker III 1.00 1.00 1.00
Maintenance Worker III (underfilled - Maintenance Worker I) 1.00 1.00 1.00 Maintenance Worker II 2.00 1.00 1.00
Maintenance Worker II (underfilled - Maintenance Worker I) 1.00 1.00 Maintenance Specialist 1.00 1.00 1.00
Maintenance Worker I 3.00 3.00 3.00
Fleet Maintenance Coordinator 1.00 1.00 1.00
Administrative Assistant II 0.75 0.75 0.75
Janitor 0.63 0.00 0.00
TOTAL POSITIONS 16.38 16.75 16.75

Department Budgets
82 NON-DEPARTMENTAL
Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to a particular department. The largest of the nondepartmental expenditures is related to the City’s contract with the Five Cities Fire Authority (FCFA) for fire protection and suppression services. The operating budget includes a significant increase to the FCFA agreement of $755,000 in FY 2023-24 and $836,000 in FY 2024-25 from the City’s previous cost of $2 million. Other non-departmental expenditures for FY 2023-24 and FY 2024-25 include unfunded pension liability cost ($925,800 and $912,500 ), insurance ($447,000 and 458,000), and contract City Attorney legal services ($226,000 and 232,000).

FINANCIALS
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET

EXPENDITURES BY CATEGORY
Salaries and Benefits $ 1,331,626 $ 1,148,973 $ 1,214,142 $ 1,181,625 $ 1,119,709 $ 1,105,000 Supplies and Services 3,882,656 3,018,655 4,608,610 3,634,676 3,875,603 3,936,890 Minor Capital 420,712
Debt Service 13,400 10,825 10,825 8,199 5,520
TOTAL EXPENDITURES $ 5,214,282 $ 4,601,740 $ 5,833,577 $ 4,827,126 $ 5,003,511 $ 5,047,410

EXPENDITURES BY PROGRAM
Non-Departmental (000& 182) $ 5,214,282 $ 4,601,740 $ 5,833,577 $ 4,827,126 $ 5,003,511 $ 5,047,410 TOTAL EXPENDITURES BY PROGRAM 5,214,282 $ $ 4,601,740 $ 5,833,577 $ 4,827,126 $ 5,003,511 $ 5,047,410

FUNDING SOURCES
General Fund $ 4,362,804 $ 4,246,230 $ 5,513,214 $ 4,597,936 $ 4,611,503 $ 4,652,430 Wastewater Fund 210,615 202,649 107,019 90,408 157,405 158,311 Water Fund 418,673 149,988 155,844 129,982 214,603 216,669 Street Rehab and Repair Fund 222,190 2,873 50,000 2,500 20,000 20,000 Fire DIF 7,500 6,300
TOTAL FUNDING SOURCES $ 5,214,282 $ 4,601,740 $ 5,833,577 $ 4,827,126 $ 5,003,511 $ 5,047,410 FY 2022-23

FUND

INFORMATION
Fund Information
83 GENERAL FUND (INCLUDES EQUIPMENT REPLACEMENT FUND)

GENERAL FUND SUMMARY

SOURCES OF FUNDING
FY 2023-24
BUDGET
FY 2024-25
BUDGET

REVENUES
Sales Tax $ 6,144,000 $ 6,311,100
Property Tax $ 5,614,200 $ 5,768,100
Cannabis Tax $ 1,326,000 $ 1,353,000
Transient Occupancy Tax $ 900,000 $ 927,000
Franchise Fees $ 735,000 $ 948,000
Other Taxes $ 295,500 $ 301,000
Licenses & Permits $ 386,300 $ 394,700
Fines $ 47,400 $ 48,400
Use of Money and Property $ 341,300 $ 344,400
Other Agencies $ 1,854,600 $ 70,000
Charges for Current Services $ 984,800 $ 1,007,600
Transfers In $ 736,417 $ 741,667
TOTAL REVENUES $ 19,365,517 $ 18,214,967

EXPENDITURES
Administrative Services $ 705,082 $ 660,581
City Manager's Office $ 1,448,687 $ 1,500,536
Community Development $ 1,238,496 $ 1,275,685
Parks and Recreation $ 570,238 $ 590,831
Police $ 7,214,410 $ 6,885,146
Public Works $ 1,548,289 $ 1,663,549
Non-Departmental $ 4,611,503 $ 4,652,430
Capital Improvement Plan $ 1,491,000 $ 1,500,000
Transfers Out $ 100,000 $ 100,000
TOTAL EXPENDITURES $ 18,927,705 $ 18,828,758
REVENUES OVER / (UNDER) EXPENDITURES $ 437,812 $ (613,791)

Fund Information
84 GENERAL FUND OPERATIONS BY DEPARTMENT
FY 2023-24 BUDGET $18,927,705 & FY 2024-25 BUDGET $18,828,758

Fund Information
85 CAPITAL PROJECTS, SPECIAL REVENUE AND ENTERPRISE FUND

RESOURCES
Below is a summary table of all other funds:
10 Parks Construction Fund Special Revenue
11 Capital Projects Fund Capital Projects
15 Underground Utilities Fund Capital Projects
16 Senior Transportation Fund Special Revenue
17 Gas Tax Fund Special Revenue
18 Local Transportation Fund Special Revenue
19 Road Maintenance and Rehabilitation Special Revenue
20 Street Rehabilitation and Repair Fund Special Revenue 31 CDBG Non-Entitlement Fund Special Revenue
32 HOME Fund Special Revenue
35 COPS Grant Fund Special Revenue
43 State Mandated ADA Fund Special Revenue
50 Transportation Development Impact Fee Fund Special Revenue 51 Law Enforcement Development Impact Fee Fund Special Revenue 52 Administrative Development Impact Fee Fund Special Revenue 53 Fire Protection Development Impact Fee Fund Special Revenue 54 Stormwater Development Impact Fee Fund Special Revenue 55 Wastewater Development Impact Fee Fund Special Revenue 56 Parks Facility Development Impact Fee Fund Special Revenue 57 Recreation Development Impact Fee Fund Special Revenue 58 Water Development Impact Fee Fund Special Revenue
80 Wastewater Fund Enterprise
81 Water Fund Enterprise
82 Water Conservation Fund Special Revenue
Fund # FUND NAME FUND TYPE

Fund Information
86 CAPITAL PROJECTS
CAPITAL PROJECTS FUND (11)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves -$ $ - -$ -$ $ - $ - Revenues:

Interest -$ $ - $ - $ - $ - $ - Revenue from Other Agencies 299,540 620,305 1,500,000 Transfers In 515,595 1,441,871 3,335,744 1,587,273 2,015,000 1,974,000 Total Revenues $ 815,135 $ 2,062,176 $ 1,166,000 $ 1,587,273 $ 3,515,000 $ 1,974,000 Expenditures:

Capital Projects $ 815,135 $ 2,062,176 $ 3,335,744 $ 1,587,273 $ 3,515,000 $ 1,974,000 Total Expenditures $ 815,135 $ 2,062,176 $ 1,166,000 $ 1,587,273 $ 3,515,000 $ 1,974,000 Ending Reserves -$ $ - -$ -$ $ - $ -
FISCAL YEAR 2022-23

The Capital Projects Fund is used for all capital improvement projects, except for Fund 20 Street Rehabilitation and Repair and the Enterprise Fund capital improvement projects that are included in those respective funds. Capital transfers are made to the Capital Projects Fund to finance capital improvement projects.

UNDERGROUND UTILITIES
UNDERGROUND UTILITIES FUND (15)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 226,449 $ 227,521 $ 228,264 $ 228,264 $ 231,764 $ 235,764 Revenues:

Interest $ 1,072 $ 743 $ 4,000 $ 3,500 $ 4,000 $ 4,000
Total Revenues $ 1,072 $ 743 $ 4,000 $ 3,500 $ 4,000 $ 4,000 Expenditures:

Total Expenditures -$ -$ -$ -$ -$ -$
Ending Reserves $ 227,521 $ 228,264 $ 232,264 $ 231,764 $ 235,764 $ 239,764 FISCAL YEAR 2022-23

The Underground Utilities Fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution.

Fund Information
87 PARKS CONSTRUCTION
PARKS CONSTRUCTION FUND (10)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 33,820 $ 36,531 $ 37,916 $ 37,916 $ 49,616 $ 61,416 Revenues:

Interest $ 167 $ 113 $ 500 $ 700 $ 800 $ 800
Park In-Lieu Fee 11,004 5,502 10,500 11,000 11,000 11,000 Total Revenues $ 11,171 $ 5,615 $ 14,255 $ 11,700 $ 11,800 $ 11,800 Expenditures:

Supplies and Services $ 8,460 $ 4,230 $ 9,000 $ - -$ -$ Total Expenditures $ 8,460 $ 4,230 $ 9,000 -$ -$ -$
Ending Reserves $ 36,531 $ 37,916 $ 43,171 $ 49,616 $ 61,416 $ 73,216 FISCAL YEAR 2022-23

This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.

SUBSIDIZED SENIOR TRANSPORTATION
SUBSIDIZED SENIOR TRANSPORTATION (16)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 18,459 $ 22,467 $ 22,540 $ 22,540 $ 22,840 $ 23,140 Revenues:

Interest $ 96 $ 73 -$ $ 300 $ 300 $ 300
LTF - Subsidized Senior Transportation 5,000 5,000
Total Revenues $ 5,096 $ 73 $ 5,000 $ 300 $ 300 $ 300
Expenditures:

Supplies and Services $ 1,088 -$ $ 1,000 $ - -$ -$
Total Expenditures $ 1,088 -$ $ 1,000 -$ -$ -$
Ending Reserves $ 22,467 $ 22,540 $ 26,540 $ 22,840 $ 23,140 $ 23,440 FISCAL YEAR 2022-23

The Subsidized Senior Transportation Fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.

Fund Information
88 GAS TAX
GAS TAX (17)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 399,252 $ 450,629 $ 169,503 $ 169,503 $ 86,197 $ 102,971 Revenues:

Interest $ 2,220 $ 1,136 $ 5,000 $ 2,500 $ 3,000 $ 3,000 Gas Tax 303,424 326,163 352,430 340,015 376,774 384,249 Total Revenues $ 305,644 $ 327,299 $ 357,430 $ 342,515 $ 379,774 $ 387,249 Expenditures:

Supplies and Services $ 199,835 $ 250,123 $ 305,150 $ 338,000 $ 285,000 $ 288,000 Minor Capital 4,300 2,000
Transfers Out 54,432 358,302 153,000 85,821 78,000 78,000 Total Expenditures $ 254,267 $ 608,425 $ 250,950 $ 425,821 $ 363,000 $ 366,000 Ending Reserves $ 450,629 $ 169,503 $ 275,983 $ 86,197 $ 102,971 $ 124,220 FISCAL YEAR 2022-23

The Gas Tax funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Street and Highway Code Section 2103- 2108.

Fund Information
89 LOCAL TRANSPORTATION FUND
LOCAL TRANSPORTATION FUND (18)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 867,116 $ 1,004,625 $ 1,357,425 $ 1,357,425 $ 1,704,526 $ 1,935,526 Revenues:

Interest $ 4,027 $ 4,090 $ 2,000 $ 20,000 $ 22,000 $ 22,000 Local transportation Fund 344,120 515,633 468,200 441,601 443,500 443,500 Total Revenues $ 348,147 $ 519,723 $ 470,200 $ 461,601 $ 465,500 $ 465,500 Expenditures:

Supplies and Services $ 18,198 $ 84,390 $ 84,500 $ 54,500 $ 84,500 $ 84,500 Transfers Out 192,440 82,533 160,000 60,000 150,000 100,000 Total Expenditures $ 210,638 $ 166,923 $ 244,500 $ 114,500 $ 234,500 $ 184,500 Ending Reserves $ 1,004,625 $ 1,357,425 $ 1,583,125 $ 1,704,526 $ 1,935,526 $ 2,216,526 FISCAL YEAR 2022-23

The Local Transportation Fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) Funds.

Fund Information
90 ROAD MAINTENANCE AND REHABILITATION FUND
ROAD MAINTENANCE AND REHABILITATION (19)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 260,180 $ 316,641 $ 340,331 $ 340,331 $ 577,331 $ 580,831 Revenues:

Interest $ 1,317 $ 1,146 $ 5,000 $ 2,000 $ 2,500 $ 2,500 Road Maintenance and Rehabilitation 244,968 263,544 328,788 285,000 300,000 300,000 Total Revenues $ 246,285 $ 264,690 $ 333,788 $ 287,000 $ 302,500 $ 302,500 Expenditures:

Transfers Out $ 189,824 $ 241,000 $ 299,000 $ 50,000 $ 299,000 $ 299,000 Total Expenditures $ 189,824 $ 241,000 $ 299,000 $ 50,000 $ 299,000 $ 299,000 Ending Reserves $ 316,641 $ 340,331 $ 375,119 $ 577,331 $ 580,831 $ 584,331 FISCAL YEAR 2022-23

The Road Maintenance and Rehabilitation Fund includes funding from the recently passed SB 1 gas tax by the State of California. The fund is mandated to separately track the expenditures of the new fees.

Fund Information
91 STREET REHABILITATION AND REPAIR
STREET REHABILITATION AND REPAIR (20)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 7,047,850 $ 4,137,642 $ 9,434,417 $ 9,434,417 $ 5,989,304 $ 3,593,992 Revenues:

Interest $ 3,928 $ 2,668 $ 15,000 $ 40,000 $ 20,000 $ 10,000 Miscellaneous 28,500 65,166 20,000 50,000 50,000 50,000 Proceeds of Long Term Debt 11,457,191
Transfers In 248,810 88,237 80,000 93,864 40,000 40,000 Total Revenues $ 281,238 $ 11,613,262 $ 115,000 $ 183,864 $ 110,000 $ 100,000 Expenditures:

Salaries and Benefits $ 178,583 $ 196,976 $ 204,408 $ 218,787 $ 234,062 $ 250,627 Supplies and Services 296,444 291,346 129,750 7,250 24,750 24,750 Capital Projects 2,716,419 4,657,474 3,380,000 3,402,940 2,246,500 2,760,000 Transfers Out 1,170,691
Total Expenditures $ 3,191,446 $ 6,316,487 $ 3,714,158 $ 3,628,977 $ 2,505,312 $ 3,035,377 Ending Reserves $ 4,137,642 $ 9,434,417 $ 5,835,259 $ 5,989,304 $ 3,593,992 $ 658,615 FISCAL YEAR 2022-23

The Street Rehabilitation and Repair Fund is generated by voter approved Measure K-14 bond sales and is used for the rehabilitation and repair of local streets.

Fund Information
92 COMMUNITY DEVELOPMENT BLOCK GRANT
COMMUNITY DEVELOPMENT BLOCK GRANT (31)
Non-Entitlement FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ (48,641) $ (22,230) $ 28,212 $ 28,212 $ 28,212 $ 28,212 Revenues:

CDBG - Non-Entitlement $ 350,655 $ 1,814,529 -$ $ 30,000 -$ -$ Total Revenues $ 350,655 $ 1,814,529 -$ $ 30,000 -$ -$
Expenditures:

Supplies and Services $ 159,662 $ 157,459 -$ $ 30,000 -$ -$ Transfers Out 164,582 1,606,628
Total Expenditures $ 324,244 $ 1,764,087 -$ $ 30,000 -$ -$ Ending Reserves $ (22,230) $ 28,212 $ 28,212 $ 28,212 $ 28,212 $ 28,212 FISCAL YEAR 2022-23

The Community Development Block Grant (CDBG) Non-Entitlement funds may be used for economic development, housing or public service projects which primarily benefit low- and moderate-income residents.

HOME GRANT
HOME GRANT (32)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ (300,466) $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 122,500 Revenues:

HOME Loan Repayments $ 122,500 -$ -$ $ - -$ $ - Transfers In 300,466 - - - - - Total Revenues $ 422,966 -$ -$ -$ -$ -$ Expenditures:

Total Expenditures -$ -$ -$ -$ -$ -$
Reductions/Additions to Reserves -$ -$ -$ -$ -$ -$
Ending Reserves $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 122,500 FISCAL YEAR 2022-23

The Home Investment Partnership Program (HOME) funds can be used for First Time Homebuyer Program, First Time Homebuyer Project, Owner Occupied Rehabilitation Program, Rental Rehabilitation, Rental New Construction Project, and Tenant-Based Rental Assistance Programs.

Fund Information
93 POLICE GRANT
POLICE GRANTS (35)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 339,885 $ 235,662 $ 222,031 $ 222,031 $ 314,513 $ 335,513 Revenues:

State Grants $ 156,727 $ 161,285 $ 165,000 $ 175,000 $ 180,000 $ 185,000 Interest Income 1,168 809 5,000 4,000 5,000 5,000
Total Revenues $ 157,895 $ 162,094 $ 170,000 $ 179,000 $ 185,000 $ 190,000 Expenditures:

Supplies and Services $ 69,687 $ 90,051 $ 60,000 $ 26,518 $ 149,000 $ 131,500 Minor Capital 192,431 85,674 20,000 60,000 15,000 15,000 Total Expenditures $ 262,118 $ 175,725 $ 80,000 $ 86,518 $ 164,000 $ 146,500 Ending Reserves $ 235,662 $ 222,031 $ 312,031 $ 314,513 $ 335,513 $ 379,013 FISCAL YEAR 2022-23

The purpose of the Police Grants Fund is to receive and track all Police Department State grant revenue and expenditures in accordance with prescribed regulations. Revenue for this fund is comprised of grants from the COPS/SLESF Grant. The Citizens Option for Public Safety Program's Supplemental Law Enforcement Services Fund (COPS/SLESF) grant was established in 1996.

Compliant cities are allocated a proportionate share of COPS funds by the State exclusively for the purpose of funding supplemental front-line law enforcement services. Under the standard grant program allocation, the City of Grover Beach is eligible to receive a minimum grant amount of $100,000 each year, with an additional proportionate share based on population estimates determined by the California Department of Finance. Funds for this program cannot supplant existing funding and are to be used for personnel and/or equipment. While the COPS programs intended to be on-going and permanent, there is no guarantee that continued funding will be available.

Fund Information
94 STATE MANDATED ADA FUND
STATE MANDATED ADA FUND (43)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 11,565 $ 10,954 $ 10,513 $ 10,513 $ 10,513 $ 10,513 Revenues:

State Mandated ADA Fee $ 5,389 $ 5,559 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Total Revenues $ 5,389 $ 5,559 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Expenditures:

Transfers Out $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Total Expenditures $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Ending Reserves $ 10,954 $ 10,513 $ 10,513 $ 10,513 $ 10,513 $ 10,513 FISCAL YEAR 2022-23

The State Mandated ADA Fund accounts for the State Mandated Disability and Education Fee (SB 1186 Steinberg). Cities are required to collect four dollars from every business license or equivalent instrument. Cities are required to transmit thirty percent of every dollar to the State. Cities keep seventy percent of every dollar to be used for ADA Certified Access Specialists Program.

Fund Information
95 TRANSPORTATION DIF
TRANSPORTATION DIF (50)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 110,498 $ 131,468 $ 22,354 $ 22,354 $ 31,454 $ 47,954 Revenues:

Interest $ 592 $ 276 $ 1,300 $ 400 $ 500 $ 500
Transportation DIF 20,378 15,110 30,000 15,000 16,000 16,000 Total Revenues $ 20,970 $ 15,386 $ 31,000 $ 15,400 $ 16,500 $ 16,500 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Transfers Out 124,500 - Total Expenditures -$ $ 124,500 $ 7,500 $ 6,300 -$ -$ Ending Reserves $ 131,468 $ 22,354 $ 45,854 $ 31,454 $ 47,954 $ 64,454 FISCAL YEAR 2022-23

The Transportation Development Impact Fee Fund accounts for fees generated by development for the construction of transportation improvements.

LAW ENFORCEMENT DIF
LAW ENFORCEMENT DIF (51)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 9,401 $ 10,364 $ 11,549 $ 11,549 $ 6,499 $ 7,899 Revenues:

Interest $ 47 $ 37 $ 150 $ 150 $ 200 $ 200
Law Enforcement DIF 916 1,148 3,000 1,100 1,200 1,200
Total Revenues $ 963 $ 1,185 $ 3,150 $ 1,250 $ 1,400 $ 1,400 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Total Expenditures -$ -$ $ 7,500 $ 6,300 -$ -$
Ending Reserves $ 10,364 $ 11,549 $ 7,199 $ 6,499 $ 7,899 $ 9,299 FISCAL YEAR 2022-23

The Law Enforcement Development Impact Fee Fund accounts for fees generated by development.

These funds may be used for law enforcement improvements related to expansion.

Fund Information
96 ADMINISTRATIVE DIF
ADMINISTRATIVE DIF (52)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 20,727 $ 22,305 $ 23,564 $ 23,564 $ 18,964 $ 20,864 Revenues:

Interest $ 103 $ 76 $ 300 $ 300 $ 400 $ 400
Law Enforcement DIF 1,475 1,183 3,200 1,400 1,500 1,500 Total Revenues $ 1,578 $ 1,259 $ 3,500 $ 1,700 $ 1,900 $ 1,900 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Total Expenditures -$ -$ $ 7,500 $ 6,300 -$ -$
Ending Reserves $ 22,305 $ 23,564 $ 19,564 $ 18,964 $ 20,864 $ 22,764 FISCAL YEAR 2022-23

The Administrative Development Impact Fee Fund accounts for fees generated by development.

These funds may be used for Administrative improvements related to expansion.

FIRE DIF
FIRE DIF (53)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 9,145 $ 11,054 $ 12,931 $ 12,931 $ 8,581 $ 2,681 Revenues:

Interest $ 48 $ 41 $ 150 $ 150 $ 200 $ 200
Fire DIF 1,861 1,836 5,000 1,800 1,900 1,900
Total Revenues $ 1,909 $ 1,877 $ 5,150 $ 1,950 $ 2,100 $ 2,100 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ $ - Transfers Out 8,000 Total Expenditures -$ -$ $ 7,500 $ 6,300 $ 8,000 -$
Ending Reserves $ 11,054 $ 12,931 $ 10,581 $ 8,581 $ 2,681 $ 4,781 FISCAL YEAR 2022-23

The Fire Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Fire improvements related to expansion.

Fund Information
97 STORMWATER DIF
STORMWATER DIF (54)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 114,311 $ 120,651 $ 125,427 $ 125,427 $ 127,627 $ 136,727 Revenues:

Interest Income $ 557 $ 405 $ 2,000 $ 2,000 $ 2,100 $ 2,100 Stormwater DIF 5,783 4,371 10,000 6,500 7,000 7,000
Total Revenues $ 6,340 $ 4,776 $ 12,000 $ 8,500 $ 9,100 $ 9,100 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Total Expenditures -$ -$ $ 7,500 $ 6,300 -$ -$
Ending Reserves $ 120,651 $ 125,427 $ 129,927 $ 127,627 $ 136,727 $ 145,827 FISCAL YEAR 2022-23

The Stormwater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Stormwater related expansion.

WASTEWATER DIF
WASTEWATER DIF (55)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 651,773 $ 281,484 $ 276,726 $ 276,726 $ 294,426 $ 235,626 Revenues:

Interest Income $ 2,810 $ 810 $ 5,000 $ 4,000 $ 4,200 $ 4,200 Wastewater DIF 18,779 21,999 50,000 20,000 22,000 22,000 Total Revenues $ 21,589 $ 22,809 $ 55,000 $ 24,000 $ 26,200 $ 26,200 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Transfers Out 391,878 27,567 85,000 - 85,000
Total Expenditures $ 391,878 $ 27,567 $ 92,500 $ 6,300 $ 85,000 -$ Ending Reserves $ 281,484 $ 276,726 $ 239,226 $ 294,426 $ 235,626 $ 261,826 FISCAL YEAR 2022-23

The Wastewater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for wastewater related expansion.

Fund Information
98 PARKS FACILITIES DIF
PARKS FACILITIES DIF (56)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 478,075 $ 475,128 $ 311,195 $ 311,195 $ 44,618 $ 77,118 Revenues:

Interest Income $ 2,264 $ 1,332 $ 8,000 $ 5,000 $ 5,500 $ 5,500 Parks Facilities DIF 27,729 28,305 71,000 20,000 27,000 27,000 Total Revenues $ 29,993 $ 29,637 $ 79,000 $ 25,000 $ 32,500 $ 32,500 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Transfers Out 32,940 193,570 175,000 285,277 - Total Expenditures $ 32,940 $ 193,570 $ 182,500 $ 291,577 -$ -$ Ending Reserves $ 475,128 $ 311,195 $ 207,695 $ 44,618 $ 77,118 $ 109,618 FISCAL YEAR 2022-23

The Parks Facilities Development Impact Fee Fund accounts for fees generated by development.

These funds may be used for Parks Facilities related expansion.

RECREATION FACILITIES DIF
RECREATION FACILITIES (57)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 86,650 $ 92,030 $ 97,403 $ 97,403 $ 45,103 $ 51,703 Revenues:

Interest Income $ 423 $ 313 $ 1,500 $ 1,500 $ 1,600 $ 1,600 Recreation DIF 4,957 5,060 12,000 3,500 5,000 5,000
Total Revenues $ 5,380 $ 5,373 $ 13,500 $ 5,000 $ 6,600 $ 6,600 Expenditures:

Supplies and Services $ 7,500 $ 6,300 -$
Capital Projects 51,000 51,000
Total Expenditures -$ -$ $ 58,500 $ 57,300 -$ -$
Ending Reserves $ 92,030 $ 97,403 $ 52,403 $ 45,103 $ 51,703 $ 58,303 FISCAL YEAR 2022-23

The Recreation Facilities Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Recreation related expansion.

Fund Information
99 WATER DIF
WATER DIF (58)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves -$ $ 17,376 -$ -$ -$ -$
Revenues:

Water DIF $ 17,376 $ 20,273 $ 32,000 $ 24,000 $ 25,000 $ 25,000 Total Revenues $ 17,376 $ 20,273 $ 32,000 $ 24,000 $ 25,000 $ 25,000 Expenditures:

Supplies and Services -$ -$ $ 7,500 $ 6,300 -$ -$
Transfers Out 37,649 32,000 17,700 25,000 25,000
Total Expenditures -$ $ 37,649 $ 39,500 $ 24,000 $ 25,000 $ 25,000 Ending Reserves $ 17,376 -$ $ (7,500) -$ -$ -$
FISCAL YEAR 2022-23

The Water Development Impact Fee Fund accounts for fees generated by development. These funds may be used for water related expansion.

WATER CONSERVATION FUND
WATER CONSERVATION (82)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 386,654 $ 379,202 $ 369,125 $ 369,125 $ 357,371 $ 346,576 Revenues:

Interest Income $ 1,813 $ 1,214 $ 3,000 $ 2,500 $ 3,000 $ 3,000 Water Conservation Penalty 1,000
Total Revenues $ 1,813 $ 1,214 $ 3,000 $ 3,500 $ 3,000 $ 3,000 Expenditures:

Salaries and Benefits $ 6,465 $ 6,817 $ 6,752 $ 7,437 $ 7,920 $ 8,225 Supplies and Services 2,800 4,474 5,875 7,817 5,875 5,875 Total Expenditures $ 9,265 $ 11,291 $ 12,627 $ 15,254 $ 13,795 $ 14,100 Ending Reserves $ 379,202 $ 369,125 $ 359,498 $ 357,371 $ 346,576 $ 335,476 FISCAL YEAR 2022-23

The Water Conservation Fund provides water conservation rebates to water customers for turf removal, smart irrigation, low flow toilet installations, and energy efficient washing machines.

Fund Information
100

ENTERPRISE FUNDS

WASTEWATER
WASTEWATER (80)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 3,174,664 $ 3,487,528 $ 3,693,046 $ 3,693,046 $ 3,022,508 $ 805,366 Revenues:

Interest Income $ 14,975 $ 24,003 $ 16,000 $ 16,000 $ 16,000 $ 10,000 Wastewater Fees 1,272,571 1,306,389 1,326,800 1,323,300 1,349,226 1,375,671 Other 61,859
Transfer In 391,878 227,363 85,000 85,000
Total Revenues $ 1,741,283 $ 1,557,755 $ 1,427,800 $ 1,339,300 $ 1,450,226 $ 1,385,671 Expenditures:

Salaries and Benefits $ 722,503 $ 756,599 $ 697,366 $ 705,927 $ 789,935 $ 827,992 Supplies and Services 423,813 477,268 416,800 657,174 415,225 404,825 Minor Capital 200,000
Debt Service 1,192 171
Capital Projects 58,928 85,167 1,845,000 350,737 2,035,000 240,000 Transfers Out 209,600 179,528 286,000 296,000 227,208 248,152 Total Expenditures $ 1,416,036 $ 1,498,733 $ 3,245,166 $ 2,009,838 $ 3,667,368 $ 1,720,969 Reductions/Additions to Reserves $ (12,383) $ 146,496 $ - $ - $ - $ - Ending Reserves $ 3,487,528 $ 3,693,046 $ 1,875,680 $ 3,022,508 $ 805,366 $ 470,068 FISCAL YEAR 2022-23

The Wastewater Fund consists of the City's Wastewater collection system and the South San Luis Obispo County Sanitation District billing. The Wastewater Enterprise Fund serves approximately 5,000 customers. The South San Luis Obispo County Sanitation District (District) sets their fees for the processing of wastewater. The City provides billing services for the District and forwards the collection of fees billed to the district monthly.

In May 2021, the City adopted a 2% increase in fees to cover the costs associated with the wastewater collection system, effective July 1, 2021. This increase will fund needed improvements and upgrades to wastewater system infrastructure. Subsequent 2% increases will be scheduled to go into effect on July 1 of the following four years. FY 2023-24 and FY 2024-25 include 2% increases each year.

The City is proposing the following Wastewater Capital Projects in the FY 2023-25 Budget: FY 2023-24 FY 2024-25 Sewer Upgrade for Exisitng Flows (5002) $ 1,585,000 $ - South Oak Park Lift Station Upgrades (5005) 150,000 Sewer Upgrade for Exisitng Flows (5010) 200,000
Replace Portion of Damaged Storm Drain at Railroad (5020) 140,000 Citywide Sewer Lining Project (5269) 100,000 100,000
Total $ 2,035,000 $ 240,000
Fund Information
101
WATER
WATER (81)
FY 2020-21 FY 2021-22 ORIGINAL ESTIMATED FY 2023-24 FY 2024-25

ACTUALS ACTUALS BUDGET ACTUAL BUDGET BUDGET
Beginning Reserves $ 7,266,106 $ 8,193,835 $ 7,640,016 $ 7,640,016 $ 6,730,832 $ 4,499,458 Revenues:

Interest Income $ 32,759 $ 23,319 $ 33,300 $ 33,300 $ 35,000 $ 35,000 Water Fees 4,311,419 3,906,986 4,265,400 3,937,200 4,058,000 4,217,560 Other 72,410 51,619
Transfers In 164,582 1,644,277 32,000 17,700 25,000 25,000 Total Revenues $ 4,581,170 $ 5,626,201 $ 4,330,700 $ 3,988,200 $ 4,118,000 $ 4,277,560 Expenditures:

Salaries and Benefits $ 1,024,022 $ 788,847 $ 817,841 $ 816,878 $ 954,218 $ 1,013,517 Supplies and Services 1,842,830 2,012,583 2,081,905 2,047,899 2,277,025 2,272,125 Minor Capital 51,838 40,950 80,000 46,300
Debt Service 105,854 100,493 281,443 281,443 280,922 281,293 Capital Projects 312,721 2,553,441 955,000 1,155,000 2,405,000 1,060,000 Transfers Out 388,210 486,176 476,000 549,864 432,209 458,153 Total Expenditures $ 3,725,475 $ 5,982,490 $ 4,692,189 $ 4,897,384 $ 6,349,374 $ 5,085,088 Reductions/Additions to Reserves $ 72,034 $ (197,530) $ - $ - $ - $ - Ending Reserves $ 8,193,835 $ 7,640,016 $ 7,278,527 $ 6,730,832 $ 4,499,458 $ 3,691,930 FISCAL YEAR 2022-23

The Water Fund consists of the City's water system, including water mains, storage reservoirs and water sampling. The Water Enterprise Fund serves approximately 5,000 customers.

In May 2021, the City adopted a 2% increase in fees to cover the costs associated with the water system, effective July 1, 2021. The FY 2023-24 and FY 2024-25 Budgets include a 4% increase each year. The increase in rates will fund needed improvements to water system infrastructure along with the Central Coast Blue recycled groundwater project.

The City is proposing the Following Water Capital Projects in the FY 2023-25 Budget: FY 2023-24 FY 2024-25 Central Coast Blue (4001) $ 730,000 $ 730,000
Water Main Zone Valves (4007) 25,000
16th Street Booster Station (4015) 180,000
Water Meter Replacement Program (4270) 150,000 150,000
Reservoir Maintenance (4391) 1,500,000
Total $ 2,405,000 $ 1,060,000

Fund Information
102

CAPITAL

PROJECTS

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 103

CAPITAL IMPROVEMENT PROGRAM
Contents
Executive Summary...................................................................................................................................................................... 104 Revenue Fund Reference Numbers and Descriptions............................................................................................................ 105 Project Revenue Summary.......................................................................................................................................................... 107 Expenditure Summary by Project Category.............................................................................................................................. 108 Completed Projects...................................................................................................................................................................... 110 Current Projects ............................................................................................................................................................................ 112 Parks / Community Services.................................................................................................................................................. 113 Public Buildings / Facilities .................................................................................................................................................... 115 Streets / Storm Drains............................................................................................................................................................ 117 Water........................................................................................................................................................................................ 132 Wastewater.............................................................................................................................................................................. 139 Unfunded Projects........................................................................................................................................................................ 145

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 104

CAPITAL IMPROVEMENT PROGRAM
2024-2028
Executive Summary
The City’s Capital Improvement Program (CIP)
outlines a schedule of expenditures over the
ensuing five-year period (2024-2028). The CIP
does not address all of the capital expenditures
for the City, but provides for larger scale
infrastructure improvements, that are
permanent in nature, including transportation
systems, and municipal facilities.

Projects in this document must be in excess of
$50,000 with a useful life of at least ten years;
or a study of at least $50,000 that will lead to
such projects; or add to the value or capacity of
the infrastructure of the City. Projects that are
considered operational or routine maintenance
are excluded from this program.

The Capital Improvement Program proposes
project funding relative to the anticipated
availability of fiscal resources and the choice of
specific improvements to be achieved
throughout the five-year plan. The Projected
Revenue Summary on page 5 identifies
fourteen (14) revenue sources and their use by
year for FY 2024-2028.

The Expenditure Summary on pages 6 and 7
identifies project expenditures in the following
five categories:

Parks / Community Services
Street / Storm Drain
Public Buildings / Facilities
Water
Wastewater
The Expenditure Summary for FY 2024
indicates a total of $12,840,395 in spending
within the five project categories. Detailed
information regarding each identified project
can be found on pages 12-47. The information
provided includes a project description, the
current status of the project, identified funding
sources and the total projected project cost.

As is often the case, funding needs identified in
the CIP exceeds the available funding. Page 49
shows a list of 15 capital needs identified at a
cost of approximately $53 million dollars that do
not have an established, secure source of
funding at this time. These identified needs will
be considered as potential funding sources are
identified.

Maximizing the City’s funding and addressing
rising costs incurred in maintaining and
rehabilitating infrastructure make the process of
selecting capital projects to fund challenging.

There are several types of capital needs such
as construction of new, first-time improvements,
replacement of aged infrastructure that is at or
beyond its service life or large-scale capital
maintenance. In addition, studies related to the
City’s various infrastructure asset categories
are included in the CIP if the study will result in
future capital improvement projects.

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 105

CAPITAL IMPROVEMENT PROGRAM

REVENUE FUNDS
Revenue Fund Reference Numbers and Descriptions
01 - General Fund
This fund is the primary fund for the City. In addition to Capital Improvements, most of the City's general operations and services are supported by this fund. Income generally consists of property, sales, and other tax revenues.
04 - Traffic Congestion Relief Fund
These funds must be used for street and road maintenance, rehabilitation, or reconstruction. Income is derived from fuel sales tax, State General Fund and tribal gaming. Requires continual expenditure of general funds at historic levels to be eligible for these funds. 10 - Parks Construction Fund
This (Quimby Act) fund accounts for parks construction developer fees. Per GBMC Chapter 11, fund use is restricted to developing new park improvements or rehabilitating existing parks or facilities within the City.
15- Underground Utilities Fund
This fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution. 17- Gas Tax Fund
These funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Streets and Highway Code Section 2103-2108. 18- Local Transportation Fund
This fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) funds.
19- Gas Tax Fund RMRA (SB1)
SB 1 enables cities and counties to address significant maintenance, rehabilitation and safety needs on the local street and road system. The intent of the funding is to maintain roads and address small problems immediately, so they don’t get worse and cost more to fix later. 20- Street Rehabilitation and Repair K-14 Bond Fund
This fund is generated by voter approved Measure K-14 bond sales and is used for the rehabilitation and repair of local streets.

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 106

CAPITAL IMPROVEMENT PROGRAM
30/31- Community Development Block Grant
This fund accounts for all revenues and expenditures associated with the federal CDBG program. Funds may be used for economic development, housing or public service projects which primarily benefit low- and moderate-income residents.
50- Transportation Development Impact Fee Fund
This fund accounts for fees generated by development for the construction of transportation facilities. 55- Wastewater Development Impact Fee Fund
This fund accounts for fees generated by development for the construction of sanitary sewer facilities. 56- Parks Facility Development Impact Fee Fund
This fund accounts for fees generated by development for the construction of parks facilities. 57- Recreation Facility Development Impact Fee Fund
This fund accounts for fees generated by development for the construction of recreation facilities. 80- Wastewater Fund
This fund is used for maintenance, operation and construction of wastewater and storm water infrastructure improvements. Income is derived from sewer user fees.
81- Water Fund
This fund is used for maintenance, operation and construction of water infrastructure improvements.

Income is derived from water user fees.
82- Water Conservation Fund
This fund receives water conservation fees from developers and is restricted to water conservation projects and programs within the City.
91- Trust and Agency Account
This fund accounts for private donations made to the City for specific uses/projects.

Regional Early Access Planning (REAP) Grant
California is committed to a future where we all have the option to live closer to our jobs, services, and daily destinations. We can achieve this future through more housing options and affordability in nearby neighborhoods, which includes transportation options so we can walk our kids to school, ride our bikes to work, or take transit. REAP 2 is a key part of the state’s strategic investments toward this more sustainable, resilient, and inclusive future for people in all areas of the state. 2024 - 2028
Projected Revenue Summary
Fund # FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
General Fund $129,252 $362,000 $1,375,000 $1,491,000 $1,500,000 $2,111,000 $2,426,000 $2,300,000 Parks Construction Fund $0 $0 $0 $0 $0 $0 $0 $0
Underground Utilities Fund
Gas Tax Fund $50,000 $0 $100,000 $75,000 $75,000 $96,000 $75,000 $0 Local Transportation Fund $0 $60,000 $100,000 $150,000 $100,000 $100,000 $100,000 $0 Gas Tax Fund (RMRA) $0 $0 $299,000 $299,000 $299,000 $299,000 $299,000 $0 Street Rehabilitation and Repair Bond Fund $2,384,076 $915,000 $0 $2,206,500 $2,720,000 $2,800,000 $1,130,000 $2,310,000 Transportation Development Impact Fee
Wastewater Development Impact Fee $0 $0 $85,000 $85,000 $0 $0 $0 $0 Parks Facility Development Impact Fee $85,277 $200,000 $161,852 Recreation Facility Development Impact Fee
Wastewater Fund $38,737 $387,000 $1,275,000 $1,950,000 $240,000 $1,840,000 $1,178,500 $630,000 Water Fund $1,073,864 $250,000 $150,000 $2,445,000 $1,100,000 $950,000 $1,339,811 $1,126,623 REAP Grant $0 $0 $0 $1,500,000 $0 $0 $0 $0
Other Agency / District
TOTAL $3,761,206 $2,174,000 $3,545,852 $10,201,500 $6,034,000 $8,196,000 $6,548,311 $6,366,623

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 108

CAPITAL IMPROVEMENT PROGRAM
2024 - 2028 Expenditure Summary by Project Category

PARKS / COMMUNITY SERVICES
CIP #
FY 2023
Estimated
Actual
FY 2023
Estimated
Spending
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
1002 $0 $0 $0 $0 $0 $0 $0 $250,000
1259 $85,277 $200,000 $161,852 $0 $0 $500,000 $500,000 $2,000,000 SUBTOTAL $85,277 $200,000 $161,852 $0 $0 $500,000 $500,000 $2,250,000

PUBLIC BUILDINGS / FACILITIES
CIP #
FY 2023
Estimated
Actual
FY 2023
Estimated
Balance
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
3002 $1,170 $250,000 $0 $0 $0 $0 $2,600,000 $0
3003 $0 $30,000 $0 $0 $0 $100,000 $0 $0
SUBTOTAL $1,170 $280,000 $0 $0 $0 $100,000 $2,600,000 $0

STREETS / STORM DRAINS
CIP #
FY 2023
Estimated
Actual
FY 2023
Estimated
Balance
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
2003 $0 $0 $0 $100,000 $0 $0 $100,000 $0
2004 $0 $90,000 $0 $0 $0 $0 $0 $0
2274 $66,821 $16,000 $0 $100,000 $50,000 $100,000 $100,000 $50,000 2285 $0 $0 $0 $1,815,000 $0 $0 $0 $0
2286 $0 $0 $0 $0 $1,924,000 $176,000 $0 $0
2287 $111,261 $186,000 $1,874,000 $1,500,000 $0 $0 $0 $0 2288 $0 $0 $0 $0 $0 $1,730,000 $700,000 $0
2295-14 $2,381,767 $5,000 $0 $0 $0 $0 $0 $0
2295-15 $96,173 $910,000 $0 $0 $0 $0 $0 $0
2295-16 $0 $0 $0 $2,020,000 $0 $0 $0 $0
2295-17 $0 $0 $0 $226,500 $2,000,000 $0 $0 $0
2295-18 $0 $0 $0 $0 $760,000 $0 $0 $0
2295-19 $0 $0 $0 $0 $0 $2,820,000 $0 $0
2295-20 $0 $0 $0 $0 $0 $0 $1,150,000 $0
2295-21 $0 $0 $0 $0 $0 $0 $0 $1,200,000
2295-22 $0 $0 $0 $0 $0 $0 $0 $1,150,000
SUBTOTAL $2,656,022 $1,207,000 $1,874,000 $5,761,500 $4,734,000 $4,826,000 $2,050,000 $2,400,000

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 109

CAPITAL IMPROVEMENT PROGRAM
2024 - 2028
Expenditure Summary by Project Category Continued
WATER
CIP #
FY 2023
Estimated
Actual
FY 2023
Estimated
Spending
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
4001 $980,000 $0 $0 $730,000 $730,000 $0 $318,311 $636,623 4007 $0 $50,000 $0 $25,000 $0 $0 $0 $0
4008 $0 $75,000 $0 $0 $0 $0 $0 $0
4015 $0 $0 $0 $0 $180,000 $780,000 $0 $0
4270 $0 $0 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 4280 $0 $0 $0 $0 $0 $0 $0 $300,000
4391 $0 $50,000 $0 $1,500,000 $0 $0 $0 $0
SUBTOTAL $980,000 $175,000 $150,000 $2,405,000 $1,060,000 $930,000 $468,311 $1,086,623

WASTEWATER
CIP #
FY 2023
Estimated
Actual
FY 2023
Estimated
Balance
FY 2023
Estimated
Carryover
FY 2024
Budget
FY 2025
Budget FY 2026 FY 2027 FY 2028
5002 $38,311 $52,000 $1,360,000 $1,585,000 $0 $0 $0 $0
5003 $426 $60,000 $0 $0 $0 $0 $0 $0
5005 $0 $0 $0 $150,000 $0 $0 $0 $0
5010 $0 $200,000 $0 $200,000 $1,000,000 $740,000 $830,000 $530,000 5020 $0 $0 $0 $0 $140,000 $0 $0 $0
5269 $0 $0 $0 $100,000 $100,000 $100,000 $100,000 $100,000 SUBTOTAL $38,737 $312,000 $1,360,000 $2,035,000 $1,240,000 $840,000 $930,000 $630,000 TOTAL $3,761,206 $2,174,000 $3,545,852 $10,201,500 $7,210,000 $7,020,000 $6,548,311 $6,366,623

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 110

CAPITAL IMPROVEMENT PROGRAM
Completed Projects
Completed Projects

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 111

CAPITAL IMPROVEMENT PROGRAM

PARKS / COMMUNITY SERVICES
Project Description Cost
1259 Ramona Design in progress $200,000

PUBLIC BUILDINGS / FACILITIES
Project Description Cost
3002 Corp Yard - Relocate mechanic shop $250,000
3003 ADA Transition plan curb ramps $30,000
3004 Facility Condition and Needs Assessment $160,000
3005 Fire Station Improvements $100,000

STREETS/STORM DRAIN
Project Description Cost
2004 Storm water alternative treatment for the train
station project $90,000
2274 Sidewalk Infill with Measure K-14 projects $67,000 2287 West Grand Avenue Streetscape design $300,000
2295-14 Measure K-14 $2,400,000
2295-15 Measure K-14 $1,000,000
2287 West Grand Avenue Streetscape design $300,000
WATER
Project Description Cost
4001 Central Coast Blue $900,000
4007 Water Main Zone Valves $50,000
4391 Reservoir Repairs and Cleaning $50,000

WASTEWATER
Project Description Cost
5002 Design for Sewer Upgrades $100,000
TOTAL $6,000,000

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 112

CAPITAL IMPROVEMENT PROGRAM
Current Projects
Current Projects

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 113

CAPITAL IMPROVEMENT PROGRAM
Parks / Community Services
CIP1002: Mentone Basin Park Improvements
Project Type: Parks / Community Services
Location: Mentone Basin Park
Project Manager: Greg Ray
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2028
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $250,000
Description or Justification: This includes adult fitness equipment at the corner or along the perimeter of the park and replacing the lights at the courts.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS Ensure that our public facilities, including parks and buildings, are maintained, improved and expanded.

CIP 1002
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $30,000
Construction $220,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $0 $0 $250,000
Funding Source(s)
General Fund (01) $250,000
Parks Construction (10)
Parks Facility (DIF)
Funding Totals $0 $0 $0 $0 $0 $0 $0 $0 $250,000

CIP 1002
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 114

CAPITAL IMPROVEMENT PROGRAM
CIP 1259: Ramona Garden Park Rehabilitation
Project Type: Parks / Community Services
Location: Ramona Garden Park
Project Manager: Erin Wiggin
Project Phase: Design
Estimated Completion
Date: Fiscal Year 2030
Project Started in
Previous Fiscal Year: Yes
Total Project Cost: $5,250,000
Description or Justification: Implement the master plan that was completed in FY21. Construction elements include a playground, an amphitheater, a plaza, new park restrooms, a new park entrance, pickleball courts, a walking path and an adult fitness area. FY23 includes construction documents for the phased project; Phase 1 is the playground for FY24 and FY25.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Ensure that our public facilities, including parks and buildings, are maintained, improved and expanded.

CIP 1259
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $14,526 $85,277 $200,000 $161,852 $0
Construction $0 $500,000 $500,000 $2,000,000
Management
Contingency
Expenditure Totals $14,526 $85,277 $200,000 $161,852 $0 $0 $500,000 $500,000 $2,000,000 Funding Source(s)
General Fund (01) $0 $0 $500,000 $500,000 $2,000,000
Parks Construction
(10) $9,000
Parks Facility DIF (56) $85,277 $200,000 $161,852
Recreation DIF (57)
Donation?
Funding Totals $9,000 $85,277 $200,000 $161,852 $0 $0 $500,000 $500,000 $2,000,000 CIP 1259
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:  Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible: 
Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 115

CAPITAL IMPROVEMENT PROGRAM
Public Buildings / Facilities
CIP 3002: City Corporation Yard Improvements
Project Type: Public Buildings / Facilities
Location: 1150 Farroll Road
Project Manager: Erin Wiggin
Project Phase: Design / Acquisition
Estimated Completion
Date: Fiscal Year 2022
Project Started in
Previous Fiscal Year: Yes
Total Project Cost: $2,850,000
Description or Justification: Mechanic garage relocation completed in FY23. Acquisition of one or two neighboring properties is ongoing. Construction of improvements will start in FY27. Refer to unfunded needs section for remaining construction funds.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Ensure that our public facilities, including parks and buildings, are maintained, improved and expanded.

CIP 3002
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design/Acquisition $108 $1,170
Construction $250,000 $2,600,000
Management
Contingency
Expenditure Totals $108 $1,170 $250,000 $0 $0 $0 $0 $2,600,000 $0 Funding Source(s)
General Fund (01) $1,170 $100,000 $1,500,000
Wastewater Fund (80) $75,000 $248,500
Water Fund (81) $75,000 $851,500
Funding Totals $0 $1,170 $250,000 $0 $0 $0 $0 $2,600,000 $0 CIP 3002
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 116

CAPITAL IMPROVEMENT PROGRAM
CIP 3003: City Disability Access Improvements
Project Type: Public Buildings / Facilities
Location: Citywide
Project Manager: Erin Wiggin
Project Phase: On-Going
Estimated Completion Date: On-Going
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $220,000
Description or Justification: The City has an ADA Transition Plan and funding will be allocated to address items in this plan. Improvements are identified in public rights of way, facilities and program improvements. FY23 includes curb ramps in conjunction with street projects. FY26 will be determined at a later date. See unfunded needs for all recommended improvements; approximate cost is $19 million.

Description or Justification: BUILDING AND FACILITY IMPROVEMENTS. Ensure that our public facilities, including parks and buildings, are maintained, improved and expanded.

CIP 3003
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $79,543 $30,000 $100,000
Management $2,990
Contingency
Expenditure Totals $82,533 $0 $30,000 $0 $0 $0 $100,000 $0 $0 Funding Source(s)
General Fund (01) $82,533 $30,000 $100,000
Local Transportation
(18)
Water Fund (81)
Funding Totals $82,533 $0 $30,000 $0 $0 $0 $100,000 $0 $0 CIP 3003
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need:  Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 117

CAPITAL IMPROVEMENT PROGRAM
Streets / Storm Drains
CIP 2003: Street Lighting Project
Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Greg Ray
Project Phase: Preliminary
Estimated Completion
Date: On-Going
Project Started in
Previous Fiscal Year: No
Total Project Cost: $200,000
Description or Justification: Ongoing project to improve street lighting throughout the City. The first phase includes major streets (North 4th Street and North Oak Park Boulevard).

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, etc.

CIP 2003
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project
Expenditures
Design
Construction $100,000 $100,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $100,000 $0 $0 $100,000 $0 Funding Source(s)
General Fund (01) $100,000 $0 $100,000
Gas Tax (17)
Funding Totals $0 $0 $0 $0 $100,000 $0 $0 $100,000 $0
CIP 2003
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:

Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 118

CAPITAL IMPROVEMENT PROGRAM
CIP 2004: Train Station Stormwater Alternative Compliance Project Type: Streets / Storm Drains
Location: 3rd Street & Manhattan Ave
Project Manager: Greg Ray
Project Phase: Construction
Estimated Completion
Date:

Project Started in
Previous Fiscal Year:

Total Project Cost: $90,000
Description or Justification: The project will reduce the volume of runoff that enters Meadow Creek. This is a requirement of the original Train Station Expansion project (CIP 3312), but since the requirements could not be achieved on that site an alternate location was selected. Given the location and timing it is a separate project.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Ensure that our public facilities, including parks and buildings, are maintained, improved and expanded.

CIP 2004
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $90,000
Management
Contingency
Expenditure Totals $0 $0 $90,000 $0 $0 $0 $0 $0 $0
Funding Source(s)
General Fund (01) $30,000
Local Transportation (18) $60,000
Funding Totals $0 $0 $90,000 $0 $0 $0 $0 $0 $0
*SLOCOG reinstating $60,000 from 3312, so this is an additional allocation.

CIP 2004
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:

Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 119

CAPITAL IMPROVEMENT PROGRAM
CIP 2274: Citywide Sidewalk Infill
Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: On-Going
Estimated Completion Date: N/A
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $700,000
Description or Justification: The project includes an allocation each year to construct infill sidewalks and corner ramps, through private-public partnerships, and in partnership with current street rehabilitation projects to enhance pedestrian access.

Description or Justification: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporation where feasible bicycle lands, sidewalks, streetlights, crosswalks, etc.

CIP 2274
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $33,088
Construction $196,685 $66,821 $16,000 $100,000 $50,000 $100,000 $100,000 $50,000 Management
Contingency
Expenditure Totals $229,773 $66,821 $16,000 $0 $100,000 $50,000 $100,000 $100,000 $50,000 Funding Source(s)
General Fund (01) $200,000 $16,821 $16,000 $100,000 $50,000 $100,000 $100,000 $50,000 Gas Tax Fund (17) $29,773 $50,000
SRTS Grant (18)
Funding Totals $229,773 $66,821 $16,000 $0 $100,000 $50,000 $100,000 $100,000 $50,000 CIP 2274
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:

Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible: 
Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 120

CAPITAL IMPROVEMENT PROGRAM
CIP 2285: Major Street Rehabilitation North 4th Street Project Type: Streets / Storm Drains Location: North 4th Street
Project Manager: Erin Wiggin
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2024
Project Started in Previous Fiscal Year:

Total Project Cost: $1,815,000
Description or Justification: Rehabilitation of local major streets according to the priorities set by City Council. This was originally part of a larger CIP Project (CIP 2283) and the design is complete. The project has been split into smaller projects. This project is North 4th Street from West Grand Avenue to Ocean View.

Based on current PCI, the recommended treatment is a grind and overlay, however the PCI will continue to decline until the street is repaired. The useful life of the project is about 10 years.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, etc.

CIP 2285
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $1,815,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $1,815,000 $0 $0 $0 $0
Funding Source(s)
General Fund (01) $1,291,000
Gas Tax Fund (17) $75,000
Local Transportation
(18) $150,000
SB1 Funding (19) $299,000
Transportation DIF (50)
Funding Totals $0 $0 $0 $0 $1,815,000 $0 $0 $0 $0
CIP 2285
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 121

CAPITAL IMPROVEMENT PROGRAM
CIP 2286: Major Street Rehabilitation West Grand Avenue 11th Street to Oak Park Blvd
Project Type: Streets / Storm Drains
Location: West Grand Avenue
(11th Street to Oak Park Blvd)
Project Manager: Erin Wiggin
Project Phase: Design
Estimated Completion Date: Fiscal Year 2025
Project Started in Previous Fiscal Year:

Total Project Cost: $2,100,000
Description or Justification: Rehabilitation of local major streets according to the priorities set by City Council. This was originally part of a larger CIP Project (CIP 2283) and the design is complete. The project has been split into smaller projects. This project is for pavement rehabilitation at West Grand Avenue from 11th-Oak Park Boulevard. The recommended treatment is a full depth rehabilitation. The useful life of the project is about 20 years.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, etc..

CIP 2286
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $1,924,000 $176,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $1,924,000 $176,000 $0 $0 Funding Source(s)
General Fund (01) $1,450,000 $176,000
Gas Tax Fund (17) $75,000
Local Transportation (18) $100,000
SB1 Funding (19) $299,000
Transportation DIF (50)
Funding Totals $0 $0 $0 $0 $0 $1,924,000 $176,000 $0 $0 CIP 2286
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 122

CAPITAL IMPROVEMENT PROGRAM
CIP 2287: Major Street Rehabilitation West Grand Avenue 4th Street to 8th Street Project Type: Streets / Storm Drains
Location: West Grand Avenue (4th Street to 8th Street)
Project Manager: Erin Wiggin
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2024
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $4,200,000
Description or Justification: The project involves implementation of some elements from the West Grand Avenue Master Plan. Improvements include median enhancements, lighting, tree planting and landscaping, irrigation and pavement rehabilitation from 4th to west of 8th. The project scope does not include concrete crosswalks at the intersection at 8th.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, etc..

CIP 2287
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $0 $111,261
Construction $186,000 $1,874,000 $1,500,000
Management
Contingency
Expenditure Totals $0 $111,261 $186,000 $1,874,000 $1,500,000 $0 $0 $0 $0 Funding Source(s)
General Fund (01) $600,000 $111,261 $186,000 $1,375,000 Gas Tax Fund (17) $100,000
Local Transportation (18) $100,000
SBI Funding (19) $299,000
Transportation DIF (50)
REAP GRANT $1,500,000
Funding Totals $600,000 $111,261 $186,000 $1,874,000 $1,500,000 $0 $0 $0 $0 $600k carryover from FY 2021
CIP 2287
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:  Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible: 
Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 123

CAPITAL IMPROVEMENT PROGRAM
CIP 2288: Major Street Rehabilitation South Oak Park Blvd Mentone Avenue to The Pike
Project Type: Streets / Storm Drains
Location: South Oak Park Blvd (Mentone Ave to The Pike) Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2027
Project Started in Previous Fiscal Year:

Total Project Cost: $2,430,000
Description or Justification: Rehabilitation of local major streets according to the priorities set by City Council. This project is South Oak Park from Mentone Avenue to the Pike. The design includes reducing to a single travel lane and providing a buffered bike lane. The recommended treatment is a full depth rehabilitation. The useful life of the project is about 20 years.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, etc..

CIP 2288
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $230,000
Construction $1,500,000 $700,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $1,730,000 $700,000 $0 Funding Source(s)
General Fund (01) $1,235,000 $226,000
Gas Tax Fund (17) $96,000 $75,000
Local Transportation (18) $100,000 $100,000
SBI Funding (19) $299,000 $299,000
Transportation DIF (50)
Funding Totals $0 $0 $0 $0 $0 $0 $1,730,000 $700,000 $0 CIP 2288
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services:  Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 124

CAPITAL IMPROVEMENT PROGRAM

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 125

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-16 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Design
Estimated Completion
Date: Fiscal Year 2024
Project Started in
Previous Fiscal Year:

Total Project Cost: $2,020,000
Description or Justification: Ramona from North 10th to North 14th Street, Front Street from Newport to Parkview Avenue, Saratoga from North 8th to Front Street, and Beckett from Brighton to Newport, North 2nd from Newport to Saratoga. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets.

CIP 2295-16
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2
Proje
Project Expenditures
Design $220,000
Construction $1,800,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $2,020,000 $0 $0 $0
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $1,980,000
Water Fund (81) $40,000
Funding Totals $0 $0 $0 $0 $2,020,000 $0 $0 $0
CIP 2295-16
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 126

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-17 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Design
Estimated Completion Date: Fiscal Year 2025
Project Started in Previous Fiscal Year:

Total Project Cost: $2,300,000
Description or Justification: North 9th from West Grand to Atlantic City, North 11th from West Grand to Ramona, North 12th from West Grand to Newport, Brighton from North 10th to North 13th, Ramona from 16th to Oak Park, Alma Ct, and Moss Ct. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLET STREETS. Continue to complete Measure K-14 street improvement on local streets.

CIP 2295-17
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $226,500 $0
Construction $2,000,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $226,500 $2,000,000 $0 $0 $0 Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $226,500 $1,960,000
Water Fund (81) $40,000
Funding Totals $0 $0 $0 $0 $226,500 $2,000,000 $0 $0 $0 CIP 2295-17
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 127

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-18 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2025
Project Started in Previous Fiscal Year:

Total Project Cost: $760,000
Description or Justification: Maintenance work for previously paved Measure K-14 streets. Staff will utilize the Pavement Management software to determine the streets and treatment methods.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets.

CIP 2295-18
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $60,000
Construction $700,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $760,000 $0 $0 $0
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $760,000
Water Fund (81)
Funding Totals $0 $0 $0 $0 $0 $760,000 $0 $0 $0
CIP 2295-18
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 128

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-19 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Planning
Estimated Completion
Date: Fiscal Year 2026
Project Started in
Previous Fiscal Year:

Total Project Cost: $2,820,000
Description or Justification: Ramona from North 8th to North 4th, Brighton from North 8th to North 4th, North 7th from Brighton to Atlantic City, North 6th from West Grand to Atlantic City and Park View to Ocean View, and North 5th from West Grand to Saratoga. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets
CIP 2295-19
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $220,000
Construction $2,600,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $2,820,000 $0 $0
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $2,800,000
Water Fund (81) $20,000
Funding Totals $0 $0 $0 $0 $0 $0 $2,820,000 $0 $0
CIP 2295-19
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 129

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-20 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2027
Project Started in Previous Fiscal Year:

Total Project Cost: $1,150,000
Description or Justification: Ramona 3rd to Front, Brighton 4th to Front, 2nd Park View to Ocean View and West Grand to Ramona. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets.

CIP 2295-20
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $100,000
Construction $1,050,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $0 $1,150,000 $0
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $1,130,000
Water Fund (81) $20,000
Funding Totals $0 $0 $0 $0 $0 $0 $0 $1,150,000 $0
CIP 2295-20
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 130

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-21 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2028
Project Started in Previous Fiscal Year:

Total Project Cost: $1,200,000
Description or Justification: North 1st from Atlantic to Newport, Front from Newport to Ramona, Ramona from 14th to 16th, Grand View, Nice from South 12th to South 10th, Rose Court. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets
CIP 2295-21
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $160,000
Construction $1,040,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $0 $0 $1,200,000
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $1,160,000
Water Fund (81) $40,000
Funding Totals $0 $0 $0 $0 $0 $0 $0 $0 $1,200,000
CIP 2295-21
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 131

CAPITAL IMPROVEMENT PROGRAM
Measure K-14 Local Street Rehabilitation and Repair Project CIP 2295-22 Project Type: Streets / Storm Drains
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2028
Project Started in Previous Fiscal Year:

Total Project Cost: $1,150,000
Description or Justification: Rockaway from 2nd to 8th Street, South 5th from West Grand Avenue to Seabright, South 5th Trouville to Farroll, South 6th West Grand Avenue to Rockaway, South 6th Longbranch to Seabright. See CIP 2274 for sidewalk infill cost sharing.

City Council Goals: STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on local streets
CIP 2295-22
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $100,000
Construction $1,050,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $0 $0 $1,150,000
Funding Source(s)
General Fund (01)
K-14 Bond Fund (20) $1,150,000
Water Fund (81)
Funding Totals $0 $0 $0 $0 $0 $0 $0 $0 $1,150,000
CIP 2295-22
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 132

CAPITAL IMPROVEMENT PROGRAM
Water
CIP 4001: Central Coast Blue
Project Type: Water
Location:

Project Manager: Greg Ray
Project Phase: Design
Estimated Completion Date: Fiscal Year 2027
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $8,000,000
Description or Justification: City's participation in the Environmental Impact Report and Final Design for the Regional Groundwater Sustainability Project (Central Coast Blue). This project is a partnership between the cities of Pismo Beach, Grover Beach, Arroyo Grande, and the South San Luis Obispo County Sanitation District. See unfunded needs for the construction costs.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long-term water resiliency.

CIP 4001
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $50,935 $980,000 $730,000 $730,000 $318,311 $636,623 Construction $272,734
Management
Contingency
Expenditure Totals $323,669 $980,000 $0 $0 $730,000 $730,000 $0 $318,311 $636,623 Funding Source(s)
Water Fund (81) $323,669 $980,000 $730,000 $730,000 $318,311 $636,623 Funding Totals $323,669 $980,000 $0 $0 $730,000 $730,000 $0 $318,311 $636,623 CIP 4001
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:  Improves Quality of Existing Services:  Responds to Federal or State Requirement:  Addresses Public Health/Safety Need:  Grant Eligible:  Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 133

CAPITAL IMPROVEMENT PROGRAM
CIP 4007: Water Main Zone Valves
Project Type: Water
Location: Various
Project Manager: Greg Ray
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2024
Project Started in Previous Fiscal Year:

Total Project Cost: $75,000
Description or Justification: Infill and replace zone valves. Reduces area impacted by water line shutdowns.

Various locations including 16th and Brighton.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long- term water resiliency.

CIP 4007
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $0 $0 $50,000 $25,000
Management
Contingency
Expenditure Totals $0 $0 $50,000 $0 $25,000 $0 $0 $0 $0 Funding Source(s)
Water Fund (81) $50,000 $25,000
Funding Totals $0 $0 $50,000 $0 $25,000 $0 $0 $0 $0
CIP 4007
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Eligible for Water Bond: 

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 134

CAPITAL IMPROVEMENT PROGRAM
CIP 4008: Well Capacity Analysis and Improvements
Project Type: Water
Location: Wells
Project Manager: Greg Ray
Project Phase: Design
Estimated Completion Date: Fiscal Year 2023
Project Started in Previous Fiscal Year:

Total Project Cost: $75,000
Description or Justification: Well field capacity analysis and Well Improvements.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long- term water resiliency.

CIP 4008
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $75,000
Construction
Management
Contingency
Expenditure Totals $0 $0 $75,000 $0 $0 $0 $0 $0 $0
Funding Source(s)
Water Fund (81) $75,000
Funding Totals $0 $0 $75,000 $0 $0 $0 $0 $0 $0
CIP 4008
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Eligible for Water Bond: 

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 135

CAPITAL IMPROVEMENT PROGRAM
CIP 4015: 16th Street Booster Station
Project Type: Water
Location: 16th Street
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2026
Project Started in Previous Fiscal Year:

Total Project Cost: $960,000
Description or Justification: Upgrade the Booster station at 16th Street.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long- term water resiliency.

CIP 4015
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $180,000
Construction $780,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $180,000 $780,000 $0 $0 Funding Source(s)
Water Fund (81) $180,000 $780,000
Funding Totals $0 $0 $0 $0 $0 $180,000 $780,000 $0 $0
CIP 4015
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Eligible for Water Bond: 

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 136

CAPITAL IMPROVEMENT PROGRAM
CIP 4270: Water Meter Replacement Program
Project Type: Water
Location: Citywide
Project Manager: Greg Ray
Project Phase: On-Going
Estimated Completion Date: Fiscal Year 2030
Project Started in Previous Fiscal Year:

Total Project Cost: $750,000
Description or Justification: Replace water meters over five years old.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled groundwater project and other regional efforts by continuing water conservation; identify other feasible strategies to ensure long-term water resiliency.

CIP 4270
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Management
Contingency
Expenditure Totals $0 $0 $0 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Funding Source(s)
Water Fund (81) $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Funding Totals $0 $0 $0 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 *estimated balance will carryover to FY 2023.

CIP 4270
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 137

CAPITAL IMPROVEMENT PROGRAM
CIP 4280: Automated Meter Reading
Project Type: Water
Location: Citywide
Project Manager: Greg Ray
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2032
Project Started in Previous Fiscal Year:

Total Project Cost: $750,000
Description or Justification: Automated Meter Reading
City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long- term water resiliency.

CIP 4280
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $300,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $0 $0 $0 $300,000
Funding Source(s)
Water Fund (81) $300,000
Funding Totals $0 $0 $0 $0 $0 $0 $0 $0 $300,000
CIP 4280
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 138

CAPITAL IMPROVEMENT PROGRAM
CIP 4391: Reservoir Maintenance
Project Type: Water
Location: Reservoirs
Project Manager: Greg Ray
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2025
Project Started in Previous Fiscal Year:

Total Project Cost: $1,550,000
Description or Justification: Routine cleaning and maintenance, overflow analysis, and minor repairs as identified during routine inspections; roof replacement and tank recoating on Tank 3 in Fiscal Year 2024.

City Council Goals: WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through the Central Coast Blue recycled ground water project and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long- term water resiliency.

CIP 4391
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $50,000 $1,500,000
Management
Contingency
Expenditure Totals $0 $0 $50,000 $0 $1,500,000 $0 $0 $0 $0 Funding Source(s)
Water Fund (81) $50,000 $1,500,000
Funding Totals $0 $0 $50,000 $0 $1,500,000 $0 $0 $0 $0
CIP 4391
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Eligible for Water Bond: 

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 139

CAPITAL IMPROVEMENT PROGRAM
Wastewater
CIP 5002: Sewer Upgrade for Existing and Future Flows
Project Type: Wastewater
Location: Various Locations
Project Manager: Gabriel Munoz-Morris
Project Phase: Design
Estimated Completion Date: Fiscal Year 2025
Project Started in Previous Fiscal Year:

Total Project Cost: $3,100,000
Description or Justification: Sewer system upgrades to support current needs and development needs (El Camino Real) from Manhattan Avenue and South 3rd Street to North 9th Street and Atlantic City Avenue.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5002
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $81,550 $38,311 $52,000
Construction $1,360,000 $1,335,000
Management $250,000
Contingency
Expenditure Totals $81,550 $38,311 $52,000 $1,360,000 $1,585,000 $0 $0 $0 $0 Funding Source(s)
Wastewater Fund (80) $81,550 $38,311 $52,000 $1,275,000 $1,500,000 Wastewater DIF (55) $85,000 $85,000
Funding Totals $81,550 $38,311 $52,000 $1,360,000 $1,585,000 $0 $0 $0 $0 CIP 5002
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: ARPA Funding: 

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 140

CAPITAL IMPROVEMENT PROGRAM
CIP 5003: Front Street Lift Station Upgrades
Project Type: Wastewater
Location: Front Street
Project Manager: Gabriel Munoz-Morris
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2024
Project Started in Previous Fiscal Year: Yes
Total Project Cost: $150,000
Description or Justification: Replace/re-coat the existing valves and pipe fittings within the wet well and the valve vault.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5003
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $28,405 $426
Construction $60,000
Management
Contingency
Expenditure Totals $28,405 $426 $60,000 $0 $0 $0 $0 $0 $0 Funding Source(s)
Wastewater Fund (80) $29,879 $426 $60,000
Funding Totals $29,879 $426 $60,000 $0 $0 $0 $0 $0 $0
*estimated balance will carryover from FY 2023.

CIP 5003
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 141

CAPITAL IMPROVEMENT PROGRAM
CIP 5005: South Oak Park Lift Station Upgrades
Project Type: Wastewater
Location: South Oak Park Blvd
Project Manager: Gabriel Munoz-Morris
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2024
Project Started in Previous Fiscal Year:

Total Project Cost: $150,000
Description or Justification: Replace/re-coat the existing valves and pipe fittings within the wet well and the valve vault. Replace/re-coat the pipe fittings within the wet well, retrofit the fiberglass enclosure to allow for user access, and install a bypass connection.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5005
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $50,000
Construction $100,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $150,000 $0 $0 $0 $0
Funding Source(s)
Wastewater Fund (80) $150,000
Funding Totals $0 $0 $0 $0 $150,000 $0 $0 $0 $0
CIP 5005
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 142

CAPITAL IMPROVEMENT PROGRAM
CIP 5010: Sewer Upgrade for Existing Flows
Project Type: Wastewater
Location: Various Locations
Project Manager: Gabriel Munoz-Morris
Project Phase: Design
Estimated Completion Date: Fiscal Year 2028
Project Started in Previous Fiscal Year:

Total Project Cost: $3,500,000
Description or Justification: Sewer system upgrades. Fiscal Year 2025 includes North 9th Street and Atlantic City to Ritchie Road and North 12th Street.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5010
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $200,000 $200,000 $80,000 $100,000 $40,000
Construction $0 $1,660,000 $730,000 $490,000
Management
Contingency
Expenditure Totals $0 $0 $200,000 $0 $200,000 $0 $1,740,000 $830,000 $530,000 Funding Source(s)
Wastewater Fund (80) $200,000 $200,000 $0 $1,740,000 $830,000 $530,000 Wastewater DIF (55)
Funding Totals $0 $0 $200,000 $0 $200,000 $0 $1,740,000 $830,000 $530,000 CIP 5010
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 143

CAPITAL IMPROVEMENT PROGRAM
CIP 5020: Replace Portion of Damaged Storm Drain at Railroad Project Type: Wastewater
Location: Various Locations
Project Manager: Erin Wiggin
Project Phase: Preliminary
Estimated Completion Date: Fiscal Year 2026
Project Started in Previous Fiscal Year:

Total Project Cost: $140,000
Description or Justification: Replace a portion of the damaged storm drain.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5020
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design $20,000
Construction $120,000
Management
Contingency
Expenditure Totals $0 $0 $0 $0 $0 $140,000 $0 $0 $0
Funding Source(s)
Wastewater Fund (80) $140,000
Wastewater DIF (55)
Funding Totals $0 $0 $0 $0 $0 $140,000 $0 $0 $0
CIP 5020
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study:  Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 144

CAPITAL IMPROVEMENT PROGRAM
CIP 5269: Citywide Sewer Lining Project
Project Type: Wastewater
Location: Various Locations
Project Manager: Gabriel Munoz-Morris
Project Phase: Construction
Estimated Completion Date: Fiscal Year 2029
Project Started in Previous Fiscal Year:

Total Project Cost: $500,000
Description or Justification: Lining and/or repair of damaged sewer mains identified as "hot spots." Currently these identified sewer mains require regular maintenance via sewer jetting.

City Council Goals: BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future.

CIP 5269
Project Financing
FY 2022
Actual
FY 2023
Actual
FY 2023
Estimated
Spending
FY 2023
Carryover
FY 2024
Budget
FY 2025
Budget
FY 2026
Projected
FY 2027
Projected
FY 2028
Projected
Project Expenditures
Design
Construction $100,000 $100,000 $100,000 $100,000 $100,000 Management
Contingency
Expenditure Totals $0 $0 $0 $0 $100,000 $100,000 $100,000 $100,000 $100,000 Funding Source(s)
Wastewater Fund (80) $100,000 $100,000 $100,000 $100,000 $100,000 Funding Totals $0 $0 $0 $0 $100,000 $100,000 $100,000 $100,000 $100,000 CIP 5269
Evaluation Criteria SATISFY SATISFY
City Council Goal:  Alleviates Substandard Conditions or Deficiencies:  Identified in Planning Document/Study: Provides Incentive to Economic Development:

Improves Quality of Existing Services: Responds to Federal or State Requirement:

Addresses Public Health/Safety Need: Grant Eligible:

Reduces Long-Term Operating Costs: Other:

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 145

CAPITAL IMPROVEMENT PROGRAM
Unfunded Projects
Unfunded Projects

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 146

CAPITAL IMPROVEMENT PROGRAM

PARKS / COMMUNITY SERVICES
Project Description Estimated
Cost
Potential Funding
Sources
Ramona Garden Park Construction for the new park $5,200,000 General Fund, Grants T-Ball Field Construct a permanent T-Ball Field at the
southeast side of 16th Street Park $75,000 General Fund Dog Park Create an official Dog Park at Costa Bella Park $100,000 General Fund Trail Master Plan
Building on the Beach Cities Feasibility Study,
develop a Master Plan and implementation
schedule for trails within the City limits. The
first phase would be a Meadow Creek trail and
the scope includes public outreach and
CEQA/EIR.
$350,000 General Fund
Potential Grant
Multi-Generational Community Center
Building on results of Senior Center Feasibility
Study, develop facility construction plans and
construct.
$3,500,000 General Fund

PUBLIC BUILDINGS / FACILITIES
Project Description Estimated
Cost
Potential Funding
Sources
City Records Storage
Develop onsite or offsite solution for storage of
records from City Hall, Police Department, and
Corporation Yard.
$300,000 General Fund
Gateway Signs Overhead gateway sign on Grand Avenue $800,000 General Fund City Hall Civic Center New City Hall and PD facilities (depending on the FCNA recommendation) $9,500,000 General Fund
Citywide Disability Access Improvements Improvements based on the ADA Transition Plan $19,000,000 General Fund
12th Street Bridge Structural Analysis and reconstruction $75,000 General Fund Major Street Rehabilitation
Repair and Rehabilitation of remaining major
streets, including: El Camino Real, Farroll Road,
The Pike and S. 4th Street
$9,000,000
General Fund
LTF
Gas Tax

CITY OF GROVER BEACH PROPOSED CAPITAL PROJECTS FY 2024-2028 CAPITAL PROJECTS - 147

CAPITAL IMPROVEMENT PROGRAM
WATER
Project Description Estimated
Cost
Potential Funding
Sources
Water Deliver Upgrades Construct a pump station on the Grover Beach turn-out of the Lopez waterline $1,600,000 Water Fund
Water Scada System
Add remote sensing to key components of the
water system to improve response and system
reliability
$300,000 Water Fund
Well Facility Improvements
Upgrades include modifying the existing
electrical systems including installing
generators to improve facility reliability and
operation for future demands and
improvements to chemical storage and
treatment facilities. Perform well capacity
evaluation.
$1,300,000 Water Fund

WASTEWATER
Project Description Estimated
Cost
Potential Funding
Sources
SCADA Systems
Add remote sensing to key components of the
water system to improve response and system
reliability
$300,000 Wastewater Fund
Wastewater DIF

Appendix
149

FINANCIAL POLICIES
ADOPTED BY THE CITY COUNCIL – RESOLUTION NO. 20-17
The cornerstone of municipal financial management is a sound policy that sets forth guidelines in the areas of revenues, operating expenditures, investments, reserves, financial reporting, capital improvements, and budgeting. Elected officials and appointed staff are accountable for public funds and responsible for the wise management of municipal finances. The community is entitled to reports that clearly communicate the financial health of the City. The following policies will guide and influence the financial management practices of the City of Grover Beach.

BUDGET POLICIES
The City Manager will provide a proposed Annual Budget to the City Council no later than June 1st of each year, and the City Council will review and adopt an Annual Budget no later than June 30th every year.

The City's budgetary system will be integrated and compatible with the accounting system, and the City Budget will be prepared on a basis in conformance with Generally Accepted Accounting Principles (GAAP).

The Mid-Year Budget Review will be presented no later than the first regular City Council meeting in March of each year. The Mid-Year Budget Review will include the current status of revenue collections and budget expenditures, economic trends, and state budget deliberations, as well as any proposed amendments necessary to bring the budget back into balance.

Annually, the City may seek the California Society of Municipal Finance Officers (CSMFO) award of Excellence for Municipal Budgeting.

Annually, the City may seek the Government Finance Officers Association (GFOA) Certificate of Achievement for Distinguished Budget Presentation award.

Annually, the City's Comprehensive Annual Financial Report (CAFR) will be prepared by an independent auditor in accordance with Government Auditing Standards issued by the Comptroller General of the United States.

Annually, the City may seek the GFOA Certificate of Achievement for Excellence in Financial Reporting.

Appendix
150

RESOURCES
Resources are defined as revenues collected during one fiscal year, as well as resources carried over from prior years. Revenues may be ongoing or one-time in nature, but resources from prior years are always one-time in nature. The following policies shall apply to resources:
 One-time resources will be used for one-time expenditures or enhancement of reserves rather than funding ongoing services.
 All revenue forecasts will reflect realistic assessments of future conditions.  Regular reports comparing actual to budgeted revenues will be prepared by City staff for the City Council.
 All potential grants shall be carefully reviewed for matching and/or maintenance-of-effort requirements.
 Intergovernmental grants, which are grants will be evaluated to determine the long-term operating and maintenance costs associated with the grant.

EXPENDITURES
Expenditures are payments made to employees, vendors, or contractors supplying goods or services to the City, except as provided in GBMC Section 2107.1; all expenditures must be made consistent with appropriations approved by the City Council in the Annual Appropriation Resolution.  Regular reports comparing budget expenditures to actual expenditures will be prepared by City staff for the City Council's information.
 When new operating programs or capital projects are proposed, staff will provide the City Council with an analysis of the one-time and ongoing costs associated with the program or project.  With the exception of initial expenditures for the creation of new programs or during periods of economic distress which result in reductions in local revenues or state funding for municipal activities, all ongoing costs for operating programs shall be paid from the ongoing revenues.

RESERVES
It shall be the City's policy to draw down reserves consistent with the following priorities:
 The use of reserves for one-time expenditures that generates ongoing cost savings or cost avoidance.
 The use of reserves for one-time expenditures that generates ongoing revenue enhancements.  The use of reserves for a one-time expenditure that leverages the expenditure of significant public or private investment in the City by other entities.
 The use of reserves to offset shortfalls in the collection of revenues.  The use of reserves to offset unanticipated increases in expenditures for current programs or projects.

Appendix
151

GENERAL FUND RESERVES
The General Fund Reserves for the City is established as a minimum of 15% of operating expenditures with a goal of at least 25%. The minimum reserves of 15% is comprised of a General Reserve and Emergency Reserve as described below:

GENERAL FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of 10% of the current fiscal year's General Fund operating budget. The General Fund reserve should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of General Fund revenues or major unanticipated increases in expenditures.

Any transfer of funds from the General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

GENERAL FUND-EMERGENCY RESERVE
The City hereby establishes an Emergency Reserve of not less than 5% of the General Fund operating budget. This reserve is established for the purpose of providing emergency funding as a result of a declared emergency or to fund an unanticipated urgent event affecting or threatening the public health, safety, and welfare of the City of Grover Beach.

Any transfer of funds from the Emergency Reserve may only be made upon City Council's approval of an amendment to the Annual Appropriation Resolution, subsequent to the City Council's finding that the guidelines established in the Resolution have been met.

WATER ENTERPRISE FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Water Fund operating budget. The Water Fund's General Reserve should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of Water Fund revenues or unanticipated increases in expenditures.

Any transfer of funds from the Water Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

WASTEWATER ENTERPRISE FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Wastewater Fund operating budget. The Wastewater Fund Reserves should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding Appendix
152
to meet operation appropriation requirements in the event the City experiences shortfalls in the collection of Wastewater Fund revenues or unanticipated increases in expenditures.

Any transfer of funds from the Wastewater Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

APPROPRIATION TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.
 Transfers between line items in the same program may be made by department heads.  Transfers between programs in the same fund may be made by department heads with City Manager approval.
 Transfer between department budgets within the same fund may only be made by the City Council.  Transfers between different funds may only be made by the City Council.  Transfers to or from employee services line items may be made by the City Manager.

CAPITAL IMPROVEMENT PROGRAM
Annually, City staff will propose a Capital Improvement Program covering the subsequent five fiscal years.

The plan will recommend specific funding of projects for the next three years and identify projects for further consideration.

The Capital Improvement Program will include a listing of projects for further consideration by the City Council. Such projects will be those which are determined to merit further study, but lacking funding sources.

Capital improvements will include Facilities and Infrastructure improvements which are valued over $50,000.

Capital Improvement Program projects will be reviewed to determine the best method of financing the project. City Council will determine whether the project is funded on a "pay as you go" basis or a debt instrument.

The City will continue imposing development impact fees which ensure that a new development pays its fair share of the increased service capacity.

CARRY OVER TO NEXT FISCAL YEAR
To the extent funds are available, any unused appropriations at the end of the fiscal year 2022-23 in active capital improvement projects and multi-year programs are hereby re-appropriated for continued use in fiscal year 2023-24 and any unused appropriations at the end of the fiscal year 2023-24 active capital improvement projects and multi-year programs are hereby re-appropriated for continued use in fiscal year 2024-25.

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Any remaining balances in approved grant programs and capital improvement projects at the end of fiscal year 2022-23 are hereby re-appropriated for continuing use in fiscal year 2023-24 and all estimated revenues from such approved grants and capital improvement projects for fiscal year 2022-23 that are not realized by fiscal year-end are authorized to be continued until the grant period ends.

Any remaining balances in approved grant programs and capital improvement projects at the end of fiscal year 2023-24 are hereby re-appropriated for continuing use in fiscal year 2024-25 and all estimated revenues from such approved grants and capital improvement projects for fiscal year 2023-24 that are not realized by fiscal year-end are authorized to be continued until the grant period ends.

To the extent funds are available, General Fund encumbrances whereby contracts remained active at the close of fiscal year 2022-23 are carried forward and any corresponding remaining balance of special one-time authorized appropriations are also carried forward with the approval of the City Manager and Administrative Services Director.

To the extent funds are available, General Fund encumbrances whereby contracts remained active at the close of fiscal year 2023-24 are carried forward and any corresponding remaining balance of special one-time authorized appropriations are also carried forward with the approval of the City Manager and Administrative Services Director.

FISCAL MANAGEMENT
It is the City's policy to minimize the subsidization by the general taxpayer of the costs of services provided to the public which are of specific benefit, rather than general benefit. The City Council shall annually consider establishing specific cost-recovery policies related to such costs to be reflected in the Master Fee Schedule.

Consistent with the State Constitution, charges for services will not exceed the cost reasonably borne to deliver those services. Costs reasonably borne may include direct and in-direct costs, as well as reasonable reserves or amortization of equipment associated with the provision of the services.

The City will annually review the Master Fee Schedule to ensure that each user fee is reflective of its intended cost-recovery percentage and will revise the fees as needed or revise the cost-recovery percentage.

The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the cost of operation, infrastructure maintenance and replacement, indirect cost recovery, and debt service.

Whenever required by bond indentures, the City will determine whether debt service coverage ratios are being met. Whenever coverage ratios are not being met, staff will recommend rate increases or expenditure reductions or some combination of the two, in order to meet coverage ratios.

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An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) which will be incorporated into the Comprehensive Annual Financial Report.

INVESTMENTS
The City will continue to have a written investment policy approved by City Council resolution annually.

The policy for investments in priority order are safety, liquidity and yield.

The City Council will receive reports on the cash position and performance of City investments at a minimum of a quarterly basis.

CAPITAL ASSETS
Future maintenance needs for all new capital facilities will be fully costed out.

All equipment and facility maintenance needs for the next five years will be projected and updated annually.

All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.

Appendix
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GANN APPROPRIATION LIMIT
City of Grover Beach Gann Appropriations Limit as defined in Article XIII-B of the California State Constitution
The voters of California, during a special election in 1979, approved Article XIII-B of the California State Constitution. Informally known as the "Gann Initiative," Article XIII-B provides limits regarding the total amount of appropriation in any fiscal year from "the proceeds of taxes." The State Legislature, in 1980, added Section 9710 to the Government Code, providing that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year.

The appropriation limit for any fiscal year was equal to the previous year's limit, adjusted for population changes and the changes in the US Consumer Price Index (or California per capita personal income, if smaller). The necessary statistical information is provided by the California Department of Finance.

However, the original Article XIII-B (Proposition 4) and its implementing legislation were modified by Proposition 111 and SB 88 by the voters in June 1980. The changes were incorporated in the FY 1990-91 appropriations limits. Beginning with the fiscal year 1990-91 appropriations limit, a city may choose annual adjustment factors. The adjustment factors include the growth in the California per capita income or the growth in the non-residential assessed valuation due to construction within the City and the population growth within the county or the City.

The table on the next page provides the calculation for the appropriations limit for fiscal year 2023-24, as well as the total appropriations subject to the limit. The adjustment factors utilized for the fiscal year 2023- 24 calculation include the growth in California per capita income and the population growth within the County of San Luis Obispo. These two factors yielded the most favorable appropriations limit for the City.

The City's appropriations subject to the limit ($12.98 million) are below the appropriation limit itself ($13.06 million) as shown in the calculation below.

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CITY OF GROVER BEACH APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2023-24
A. Last Years Limit $ 12,569,911 FY 2022-23 Limit
B. Adjustment Factors

1. Population 0.99495 CA Dept of Finance

2. Inflation 1.04440 CA Dept of Finance

1.03913 B1 * B2
TOTAL ADJUSTMENT % 0.03913 B1 * B2 - 1
C. Annual Adjustment $ 491,860 A * B
D. THIS YEARS LIMIT $ 13,061,773 A + C
E. Tax Proceeds $ 14,546,600 FY 2023-24 Budget
F. Exclusions $ 1,562,620 FY 2023-24 Budget
G. 2023-24 Appropriations Subject to Limit $ 12,983,980 E - F AMOUNT UNDER/(OVER) LIMIT $ 77,793 D - G

AMOUNT SOURCE

Agenda Item No. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 12, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Five Cities Fire Authority (FCFA) Joint Powers Authority Agreement, Appointment of Council Representatives to FCFA Board, and Policy Direction on Agreements with Oceano Community Services District

RECOMMENDATION
Approve the Joint Powers Authority agreement for an Amended and Restated Five Cities Fire Authority (FCFA); appoint Council representatives to the reconstituted FCFA Board; and provide policy direction on agreements with the Oceano Community Services District on temporary fire and emergency medical services and ongoing obligations for CalPERS pension liabilities.

DISCUSSION
On April 24, 2023 the Council received an update on fire and emergency medical services following a February 27th presentation by outside consulting firm Baker Tilly of their review into fire and emergency medical services needs in Grover Beach and Arroyo Grande provided by the Five Cities Fire Authority (FCFA) Joint Powers Authority (JPA). This review was commissioned in October 2022 to provide an outside, third-party review of this important policy issue. The need for the review stemmed from the pending withdrawal of the Oceano Community Services District (OCSD) from FCFA on July 1, 2023 given the failure of Measure A-22 which would have generated additional funding for fire and emergency medical services in Oceano. As part of the prescribed “wind down” process in the existing Third Amendment to the Joint Powers Authority Agreement, OCSD filed a request with the Local Area Formation Commission (LAFCO) to divest the District from the responsibility of providing fire and emergency medical services within Oceano.

Baker Tilly’s scope included a service level analysis, staffing deployment options, fiscal analysis, and review of alternative service models and governance structure. This work included reviewing the financial impacts of OCSD’s departure from FCFA including their current funding contribution and whether it would be beneficial for FCFA to provide fire service to Oceano under a contractual fee-for-service arrangement. Following the February 27th presentation, Baker Tilly finished its review and submitted a final report to the cities which was provided to the Council on April 24. In addition to this report, the April 24th update outlined proposed fire service level and staffing recommendations in FY 2023-24 including temporary contractual service delivery to Oceano and presented a draft JPA agreement for an Amended and Restated FCFA based on a two-city structure with Arroyo Grande and Grover Beach. The Council provided policy direction to support the service level and staffing recommendations as well as the draft JPA agreement.

This staff report covers the following items subsequent to the April 24th update:
• Final JPA agreement for an Amended and Restated FCFA
• Appointment of Council representatives to reconstituted FCFA Board Staff Report: FCFA JPA Agreement, Board Representatives, and Oceano Agreements Page 2 June 12, 2023

• Proposed agreements with OCSD regarding temporary fire and emergency medical services and ongoing obligations for CalPERS pension liabilities • FCFA service levels and budget for FY 2023-25
A similar agenda item is scheduled in Arroyo Grande on June 13 so that the two City Councils can receive information and take related actions on successive meeting nights in preparation for the upcoming fiscal year.

JPA Agreement for an Amended and Restated Five Cities Fire Authority Attachment 1 includes the final version of the Five Cities Fire Authority JPA Agreement for Council approval. Key provisions of the agreement include:
• Authority governance. There will be a four-member Board of Directors to provide policy oversight of the Authority. The Board will have a Chair and Vice Chair, meet at least quarterly, and consist of two representatives of each city with the Chair and Vice Chair appointed from each respective city.
• Executive management. The agreement calls for the executive management of the Authority to be vested in a two-person Management Committee made up of the current City Manager for both Member Agencies. The Management Committee shall hire, terminate, and provide executive management of the Fire Chief who in turn will be responsible for operational management of the Authority. While both City Managers will be part of the Management Committee, one of the City Managers will serve as the Chief Executive Officer (CEO) to carry out decisions of the Management Committee and act on urgent matters as needed. The CEO role will rotate between the City Managers at the same annual frequency as the Board Chair and Vice Chair roles so the Chair and CEO would be from the same city.
• Other Authority positions. The agreement continues the current assignment of the Director of Administrative Services for Arroyo Grande serving as the Authority Treasurer. The Board and Management Committee, in consultation with the Fire Chief, shall appoint or designate a Secretary who shall serve at the pleasure of the Board and be the official custodian of records for the Authority. The Board would also appoint an attorney to serve as legal counsel for the Authority. Employees of the Authority would officially be employees of Arroyo Grande, as they are under the current agreement, but will be assigned to the Authority through an agreement between Arroyo Grande and the Authority.

The Authority will use Arroyo Grande’s CalPERS contract for Authority employees. • Fire stations, other real property, and equipment. Similar to the current arrangement, buildings and structures owned by Member Agencies may be utilized for the Authority’s use but shall remain the property of the respective Member Agency. Each Member Agency shall be responsible for maintenance and insurance of Member Agency buildings.

Similarly, all equipment owned by Member Agencies shall remain the property of each Member Agency but may be utilized by the Authority. The Authority may acquire any equipment or other personal property for the Authority’s use. The Authority’s principal business and governance office will remain at the Authority’s Station 1 in Arroyo Grande. • Cost-sharing and budget. The agreement retains the Member Agency funding formula which is currently based on population, service calls, and number of stations and personnel. Based on this formula, Arroyo Grande would pay 58% of FCFA costs and Grover Beach would pay 42%. The formula would be re-evaluated by the Member Agencies at least every two years prior to the Agencies’ respective biennial budget Staff Report: FCFA JPA Agreement, Board Representatives, and Oceano Agreements Page 3 June 12, 2023

adoption. The agreement also states that the Board initially adopt a budget within 30 days of execution of this Amended and Restated JPA and annually adopt a budget prior to April 30 in order for Member Agencies to review and incorporate contract costs into their respective fiscal year budgets.
• New members and membership withdrawal. The agreement provides the ability to admit new Member Agencies to the Authority. New members may only be admitted with unanimous approval from the Board and governing bodies of each Member Agency. There is also language allowing withdrawal of membership with continued payment of its share of liabilities incurred by the Authority.

The final JPA agreement is largely identical to the draft version presented to the Council on April 24 and includes minor editing modifications and a provision in Section 4.4 to bolster the enforceability of the separate liabilities agreement between OCSD and FCFA shown in Attachment 3 for the Council’s inform. Pending Council adoption and adoption by the Arroyo Grande City Council, the agreement would go into effect on June 22, 2023 to tie into the scheduled date for the initial meeting of the reconstituted FCFA Board where a temporary service agreement with OCSD will be considered.

Appointment of Council Representatives to Reconstituted FCFA Board of Directors Pending adoption of the JPA Agreement by the respective Councils, the initial action for the Council is to appoint representatives to the reconstituted FCFA Board. The Board will provide policy oversight of the Authority and consist of two representatives of each city with a Chair and Vice Chair appointed from each respective city. The Board will meet at least quarterly with the initial regular meeting held on June 22 as mentioned above to carry out actions tied to the new fiscal year including adoption of a budget for FY 2023-24 and approval of a temporary service agreement to provide fire and emergency medical services to Oceano. The Council is asked to select its two representatives to the FCFA Board effective for this initial meeting with subsequent appointment on an annual basis as part of the Council’s appointments to outside committees or organizations. If desired, Council may also appoint an alternate to serve if one or more appointed City representatives to the FCFA Board are unavailable to attend a meeting.

Proposed Agreements with the Oceano Community Services District Staff is bringing two agreements with OCSD for Council review that will be considered by the FCFA Board. The first is an agreement to provide temporary fire and emergency medical services to Oceano. This draft agreement is shown in Attachment 2. Under this agreement, FCFA would contract with OCSD to provide fire and emergency medical service to Oceano for a 12-month period from July 1, 2023 to June 30, 2024 while the LAFCO divestiture process is underway (the agreement would officially go into effect upon approval by both the OCSD and FCFA Boards).

This divestiture process was initiated in January and is expected to take 9-12 months to complete through early 2024. Below are the terms in this draft agreement:
• Term: 12 months to provide time for completion of the LAFCO divestiture process. • Cost: $1,150,000 which is the maximum amount OCSD can pay for fire and medical service in FY 2023-23 with OCSD’s current share of property tax revenue. • Scope of Service: Fire and emergency response services, including the minimal fire prevention services currently provided by the FCFA.
• Location: Service will be provided from companies stationed at Station 1 in Arroyo Grande or Station 2 in Grover Beach. There are identified deficiencies at Station 3 in Oceano that make continued use of this station by FCFA unadvisable beyond use as a storage area.

Staff Report: FCFA JPA Agreement, Board Representatives, and Oceano Agreements Page 4 June 12, 2023

Staff would note that this payment amount reflects a 13% effective share of FCFA costs for the next fiscal year which is a lower percentage than the percentage in the current fiscal year (16%).

A cost based on this 16% percentage would be approximately $1.4 million while a cost based on the percentage specified in the current Third Amendment to the JPA Agreement (20%) would be $1.7 million. OCSD is unable to fund any additional costs beyond their $1.15 million share of property tax revenue given the failure of their tax measures and the County is not in a position to make up this difference for next fiscal year for a service they are not currently responsible for.

However, if the County requests ongoing contract service to Oceano at the conclusion of the LAFCO process, staff would recommend that the FCFA charge the County a higher annual amount based on the proportional allocation of FCFA costs to the cities. Staff from Grover Beach and Arroyo Grande have provided the County an initial cost estimate of $2.1 million which includes an increase in staffing to provide three 3-person companies as recommended by Baker Tilly for the FCFA service area with ongoing contract service delivery to Oceano. The County Board of Supervisors will discuss this issue at their June 20th meeting which staff will attend to represent the City. Further deliberation of this potential service contract will continue into FY 2023-24 and will be brought to the FCFA Board and Council at the appropriate time.

The second agreement addresses the OCSD’s ongoing obligations for its share of the FCFA’s post-retirement (CalPERS) liabilities. This agreement is shown in Attachment 3. Under the terms of the Third Amendment, OCSD is subject to ongoing obligations to pay its share of CalPERS liabilities incurred by FCFA since the formation of the Authority on June 7, 2010. Staff for the two cities and the OCSD have prepared an agreement that will address these ongoing liabilities following the OCSD’s exit from the FCFA. Key terms of the agreement include:
• FCFA will prepare an actuarial analysis each year identifying the estimated liabilities of FCFA, from which OCSD’s obligation will be calculated until the obligations are fully paid.

A draft actuarial report is attached to the agreement as an example. • OCSD may pay its share of FCFA’s CalPERS obligations on a yearly basis, based on the yearly actuarial analysis, or as a lump sum.
• OCSD’s share of FCFA’s CalPERS obligations will be offset by its share of FCFA’s assets as of June 30, 2023. The assets include:
o OCSD’s proportionate share of the FCFA fund balance as of June 30, 2023, as determined by the FCFA Treasurer based on the audited financial report for FY 2022-23, and
o The OCSD’s proportionate ownership share of FCFA’s physical assets as of June 30, 2023, which equals $278,109.
• Based on the actuarial analysis of the FCFA’s 2021 CalPERS liabilities, it is estimated that OCSD’s annual payments may be approximately $20,000 per year. OCSD’s cumulative share of FCFA’s assets are anticipated to be approximately $500,000, which may cover OCSD’s yearly payment for its share of CalPERS liabilities for 20-25 years depending on the actuarial results each year.

The Council is asked to review these draft agreements with OCSD for fire and emergency medical service for FY 2023-24 and ongoing CalPERS liabilities and provide policy direction to the Council’s representatives on the FCFA Board which will ultimately approve the agreements. Staff would note that the Arroyo Grande City Council has previously provided direction in support of the service agreement and the OCSD Board will consider approval of the agreement on June 14 followed by consideration by the FCFA Board at its initial meeting on June 22.

Staff Report: FCFA JPA Agreement, Board Representatives, and Oceano Agreements Page 5 June 12, 2023

FCFA Service Levels and Budget for FY 2023-24
Lastly, staff wished to review with the Council the proposed FCFA service levels and budget for FY 2023-25. OCSD’s payment for service in FY 2023-24 is reflected in the FCFA budget shown in Attachment 4 which will be considered by the FCFA Board at its initial meeting. As part of the City’s FY 2023-25 Proposed Budget, the City is increasing its contribution to FCFA from $2.02 million in FY 2022-23 to $2.77 million in FY 2023-24 or a total increase of approximately $750,000.

The City’s estimated contribution in FY 2024-25 will be $2.86 million. These increases will fund an additional 3.5 full-time equivalent (FTE) positions including 2.0 FTE Firefighter Engineers, 1.0 FTE Battalion Chief, and 0.5 FTE administrative staff. This staffing level will enable a 24x7 2- person third company to better serve the FCFA service area along with the existing two 3-person companies.

Pending adoption of budgets by the two cities, FCFA plans to fill these positions on a temporary basis through overtime and acting assignments until these positions are filled permanently. Staff would note that both Grover Beach and Arroyo Grande plan to perform fire inspection services not currently performed by FCFA though the use of the cities’ respective building services contractors. The costs and revenues for these inspections are included in the City’s proposed budget and these services will be reviewed in the upcoming fiscal year to determine long-term viability of this approach.

FISCAL IMPACT
The cost to the City of the recommended service levels and staffing for fire services for FY 2023- 24 is $2.77 million with an FY 2024-25 projected cost of $2.86 million. These costs are approximately $750,000-850,000 higher than the City’s current cost of approximately $2 million.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Approve the Joint Powers Authority agreement for an Amended and Restated Five Cities Fire Authority (FCFA); appoint Council representatives to the reconstituted FCFA Board; and provide policy direction on agreements with the Oceano Community Services District on temporary fire and emergency medical services and ongoing obligations for CalPERS pension liabilities; or
2) Do not approve the Joint Powers Authority agreement; or 3) Approve a modified version of the agreement which would need to be approved by Arroyo Grande; or
4) Provide alternative direction to staff.

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

Staff Report: FCFA JPA Agreement, Board Representatives, and Oceano Agreements Page 6 June 12, 2023

Attachments

1. Agreement for an Amended and Restated Joint Powers Authority

2. Draft Service Agreement with OCSD

3. Draft Liabilities Agreement with OCSD

4. FCFA Budget for FY 2023-24
65501.00001\41161259.18

AMENDED AND RESTATED

JOINT EXERCISE OF POWERS AGREEMENT
OF

THE FIVE CITIES FIRE AUTHORITY
This JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement” or “JPA”) is dated this __ day of ____, 2023, for reference purposes only, and is entered into by and between the undersigned Member Agencies. The undersigned Member Agencies, the Cities of Arroyo Grande and Grover Beach, may be referred to herein individually as “Member Agency” and collectively as “Member Agencies” or “Members.”

RECITALS
A. The City of Arroyo Grande (“Arroyo Grande”) and the City of Grover Beach (“Grover Beach”), (collectively, “Member Agencies”) have the authority under California law to provide fire protection, emergency medical and related services within their respective jurisdictions.

B. Each Member Agency is a public agency authorized and empowered to contract with the other Member Agency for the joint exercise of powers under the Joint Exercise of Powers Act, Sections 6500, et seq., of the California Government Code (the “Act”).

C. Each Member Agency is a local public entity, and are municipalities in contiguous geographical proximity, having similar fire protection needs, and a history of coordination and cooperation between each other.

D. By jointly exercising fire protection, emergency medical and related services, each Member Agency is able to achieve cost savings and operational efficiencies for the benefit of the persons residing in the Member Agencies’ respective service areas.

E. On June 7, 2010, the Member Agencies, desirous of improving the quality and level of fire suppression and emergency medical service delivery within their communities through the sharing of resources and expertise, entered into a Joint Powers Authority Agreement (the “JPA”) and have operated as Five Cities Fire Authority pursuant to the terms and conditions in that agreement since that time. Under that agreement, the Member Agencies have shared fire services, allowing for cost savings and operational efficiencies in providing fire services to the public.

Consolidation of such fire services into a single public entity has allowed for an efficient fire protection organization significant command and administrative benefits, and a net-decrease in operational costs with a concurrent increase in operational efficiency.

F. The Oceano Community Services District was previously a member of the JPA, but voluntarily exited the JPA in June 2023 due to an inability to meet its contribution obligations under the JPA.

G. The Member Agencies have now determined the specific terms of the 2010 agreement should be amended so that this Amended and Restated Joint Powers Agreement accurately reflects the Authority's current structure and operations.

Attachment 1 - 1
65501.00001\41161259.18
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated the Member Agencies agree as follows:

1. Recitals. The recitals above are true and correct, and are hereby incorporated into the terms of this Agreement as though fully set forth herein.

2. Term. The term of this Agreement shall commence as of the date the Member Agencies have fully executed this Agreement and continue until terminated pursuant to the terms of this Agreement.

3. Definitions. Except where the context otherwise clearly requires, the following words and phrases shall have the meanings specified below:
“Act” shall mean the Joint Exercise of Powers Act of the State of California, commencing with California Government Code Section 6500, as now existing or as may hereinafter be amended or supplemented.
“Agreement” shall mean this Joint Exercise of Powers Agreement by and between the Member Agencies, as supplemented, amended and/or restated from time to time. “Authority” shall mean the Five Cities Fire Authority, a joint powers authority created by this Agreement in accordance with the Act, made up of the Member Agencies, the Cities of Arroyo Grande and Grover Beach.
“Authority Area” means that geographic area encompassing the total combined jurisdictional boundaries of the Member Agencies, as lawfully changed from time to time. “Board” or “Board of Directors” means the governing body of the Authority as established by this Agreement.
“Board member” or “Director” means a member of the governing body of the Authority. “Fiscal Year” means July 1 of one year through June 30 of the following year. “Formation Date” means the date when the Authority was originally created, June 7, 2010.

4. Creation of Authority.

4.1 Authority Created. The Authority was created as a public entity on June 7, 2010 as the “Five Cities Fire Authority” by operation of the prior Joint Powers Authority agreements.

The Authority was and is formed pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code of the State of California, which authorizes two or more public agencies, by a joint powers agreement entered into respectively by them and authorized by their legislative or governing bodies, to exercise jointly any power or powers common to the member agencies. The Authority shall be a public entity separate from the Member Agencies and is responsible for the administration of this agreement. 65501.00001\41161259.18
The debts, liabilities and obligations of the Authority shall be the debts, liabilities and obligations of the Authority alone and not of one or more of the Member Agencies. (a) Confirmation of Authority Name. The Authority is known as the “Five Cities Fire Authority.”

4.2 Notices. Within thirty (30) days after execution of this Amended and Restated Agreement, the Authority shall cause a notice of such amendment to be prepared and filed with the office of the California Secretary of State containing the information required by California Government Code § 6503.5. Within ten (10) days after execution of this Amended and Restated Agreement, the Authority shall cause an amended statement of information concerning the Authority, as required by California Government Code § 53051, to be filed with the office of the California Secretary of State and with the County Clerk, of any change in facts as required by Government Code § 53051(a).

4.3 Authority Area. The geographic boundaries of the Authority (“Authority Area”) shall be coextensive with those of the Member Agencies, as lawfully changed from time to time.

4.4 Other Joint Powers Agreements Superseded. As of the Effective Date of this Agreement, any prior JPA agreements and/or amendments of the Five Cities Fire Authority shall have no further force and effect. Notwithstanding the foregoing, nothing in this Agreement supersedes the obligations, or otherwise absolves the former member agency of the Authority, Oceano Community Services District, of its ongoing share of unfunded CalPERS liabilities, including but not limited pension/CalPERS, accrued fringe benefits, and other liabilities incurred from Oceano’s participation in the Five Cities Fire Authority, prior to June 30, 2023 (“Liabilities”). The Authority shall enter into a standalone agreement with Oceano Community Services District with respect to those ongoing Liabilities.

4.5 Bylaws. The Board may adopt bylaws and any other regulations, policies, or procedures for the operation of the Authority not inconsistent with State constitutional, statutory, or decisional case law or the California Code of Regulations.

4.6 Purpose. The purpose of this Agreement is to jointly exercise fire protection, emergency medical, and related services. The purpose shall be accomplished, in the manner set forth in this Agreement. The Member Agencies each possess the powers necessary or convenient for the accomplishment of such purposes.
(a) Through the Authority and its governing body, the Member Agencies shall collaborate, cooperate and seek to determine ways in which the Member Agencies and the citizens residing within the Authority Area can benefit from joint services. (b) The Authority shall provide fire protection, emergency medical, and related services within the Member Agencies.
(c) The Member Agencies shall jointly benefit through the sharing of resources, which may include but is not limited to the sharing of executive and/or administrative staff. Among other public benefits, the Member Agencies shall receive reduced costs and more efficient services through the sharing of such resources. 65501.00001\41161259.18
(d) The purposes of this Agreement shall not be construed as limiting, and the Authority, and the Board shall be authorized to further define the means by which the joint exercise of services may be accomplished.
(e) The Authority may, if approved by the Member Agencies, accept new Parties to this Agreement, and the purposes of this Agreement shall include the provision of fire protection, emergency medical, and related services within the territorial jurisdiction of any new Parties. The purposes of this Agreement shall apply to any new Parties.

5. Powers of Authority.

5.1 The Authority shall exercise the powers common to the Member Agencies, powers otherwise permitted under the Act, and powers necessary to accomplish the purposes of this Agreement.

5.2 The Authority is hereby authorized, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement and to do any or all of the following:
(a) Setting and adopting policies, including the scope of the Management Committee’s authority under Section 7.1.
(b) Adopting an annual budget.
(c) Employing personnel, consultants, advisors and independent contractors, setting parameters for labor negotiations, and ratifying labor agreements. (d) Entering into contracts, leases and other agreements, which may include, but are not limited to, a contract for administrative and fiscal services and a contract with a Certified Public Accountant for annual audit services or mutual aid or automatic response agreements or contracts for service to other jurisdictions. (e) Applying for; receiving and disbursing grants, loans or other aids from any private or public agency.
(f) Setting fees for service where permitted by law.
(g) Receiving, disbursing and investing funds.
(h) Purchasing and holding title to property, and obtaining leaseholds, licenses, and other interests in property, including the authority to acquire, dispose of, construct, manage, maintain or operate any building, works or improvements. (i) Issuing revenue bonds pursuant to California Government Code Section 6540, et seq.
(j) Obtaining in its own name all necessary permits, licenses, opinions and rulings.
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(k) Expending funds of the Authority only for the purpose of carrying out the provisions of this Agreement as they now exist or may hereafter be amended. Such powers shall be exercised in the manner provided in the Act subject only to such restrictions as set forth in this Agreement or other applicable law.
(l) Suing and being sued in its own name.
(m) Carrying out and enforcing all of the provisions of this Agreement. (n) To incur debts, liabilities or obligations, which do not constitute a debt, liability or obligation of any Member Agency.
(o) To receive gifts, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions and donations. (p) To fix the compensation, if any, paid to the Board of Directors, Secretary, Treasurer, Controller and Attorney, in compliance with all applicable laws. (q) To prescribe the duties, compensation and other terms and conditions of employment of other agents, officers and employees.
(r) To adopt reasonable rules and regulations for the conduct of the day-today operations of the Authority. (s) To apply for, accept, receive and disburse grants, loans and other aid. (t) To invest money in the treasury, pursuant to Government Code section 6505.5, that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, pursuant to Section 53601 of the Government Code.
(u) To exercise any and all powers which are provided for in the Act and in Government Code section 6584 et. seq. including, without limitation Government Code section 6588, as they exist on the Effective Date of this Agreement or may hereafter be amended. (v) Other powers and duties incidental to those enumerated herein.

5.3 Manner of Exercise of Powers. The powers of the Authority shall be limited only by the terms of this Agreement, the Act, and applicable law, as amended from time to time. The laws of the State of California applicable and common to general law cities shall govern the Authority in the manner of exercising its powers common between the cities, subject to such restrictions as are applicable to the City of Arroyo Grande in the manner of exercising such powers, as required by Government Code section 6509.

6. Governance.
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6.1 Board of Directors. The Authority shall be governed by a four-member Board of Directors (collectively “Board,” individually “Board member” or “Director”). Each Member Agency may appoint Board members, as follows: two (2) elected city councilmembers, which may but is not required to include the Mayor from each Member Agency. Each of the four (4) Authority Board members, and any alternates, shall be appointed as determined by the respective Member Agencies’ City Councils and any applicable local policies. All the power and rights of the Authority shall be exercised by the Board, subject to the rights reserved by the Member Agencies as set forth in this Agreement; provided, however, that the Board may delegate such powers and authority to committees, sub-committees, the Management Committee, and others as the Board deems appropriate.

6.2 Compensation. Directors may receive such compensation from the Authority for services as may from time to time be established by the Board, subject to the limits of applicable law. Directors shall be reimbursed for necessary and actual expenses incurred in the conduct of the Authority’s official business as permitted by law and by policies adopted by the Board.

6.3 Board Officers, Alternating Member Agency Term. In the interest of full representation between the two Member Agencies, the role of Board Chair and Vice Chair shall alternate between the two Member Agencies as follows:
(a) A Board member from one of the two Member Agencies shall serve as Board Chair over a one-year term (“Chair Term”). During each Chair Term, the Vice Chair shall be selected from a different Member Agency than that of the Board Chair, ensuring the Vice Chair serves a city council that is not part of the City organization on which the Board Chair serves.
(b) Following each one-year Chair Term, the Chair and Vice Chair shall alternate between the two Member Agencies, so at all times the Board Chair and Vice Chair shall be from the separate Member Agencies.
(c) The Chair, or in the Chair’s absence the Vice Chair, shall preside at and conduct all meetings of the Board and execute agreements and other official instruments on behalf of the Authority. In the absence or inability of the Chair to act, the Vice Chair shall act as Chair. In the absence of the Chair and the Vice Chair, the absent members may appoint a different member of the Board to serve as an alternate. (d) The procedure for selecting the Board Chair and Vice Chair shall be set forth within the Authority’s adopted by-laws or other adopted Authority policy as soon as practical.

6.4 Meetings of the Board.
(a) Annual Meeting. The Board shall hold an annual meeting to review the services provided by the Authority and to consider approval of a budget, which shall be a regular meeting conducted in accordance with the provisions of the Ralph M. Brown Act, Sections 54950 et seq. of the California Government Code. The Board shall also hold regular meetings at least quarterly, on a schedule adopted pursuant to subsection 6.4(d) below. The Board may hold additional regular meetings as determined by the Board and may adopt such procedures and 65501.00001\41161259.18
12609-0001 \1234376v1.doc -3-
resolutions for conducting such meetings and other business as the Board deems appropriate.

Alternatively the Board may establish an executive or other committee to hold regular meetings. (b) Conduct of Meetings. All meetings of the Board including, without limitation, regular, adjourned regular, and special meetings shall be called, noticed and conducted in accordance with the provisions of the Ralph M. Brown Act, Sections 54950 et seq. of the California Government Code.
(c) Quorum. A simple majority of the Board shall constitute a quorum for the purpose of transacting business. The affirmative vote of a majority of the quorum shall be required for the Authority to take any action and must include at least one affirmative vote from one Board member from each Member Agency, except: (i) where different voting requirements are provided for by applicable law or local Authority policies; and (ii) approval of budgets, issuance of any bonds, exercise of eminent domain, and incurrence of any debts, liabilities, obligations, certificates of participation or other evidence of indebtedness shall require an affirmative vote of the majority of the membership of the Board subject to any specific, adopted or applicable Authority purchasing policy. This section shall not prohibit the Board from delegating the authority to purchase goods and services, including goods and services consistent with any adopted or applicable Authority purchasing policy, specified herein. (i) In the absence of a quorum at any meeting of the Board, a majority of the directors present, or the Chair in the absence of all directors, or the secretary may adjourn the meeting from time to time without further notice, but no other business may be transacted. (d) Location and Date. The Board shall meet at the Principal Governance and Business Office as set forth in Section 9 of this Agreement, or at such other place as may be designated by the Board for its regular, adjourned regular, and special meetings consistent with this Agreement. The dates upon which, and the hour and place at which, any regular meeting shall be held shall be fixed by resolution of the Board and a copy of such resolution shall be provided to each Member Agency.
(e) Agendas and Minutes. The Board may select, appoint, or employ a secretary to keep or cause to be kept, at the principal business office, the principal governance office, or such other place as the Board may order, a book or electronic copy of minutes of all meetings of the Board and its committees as required by law, with the time and place of holding, whether regular or special, the notice thereof given, the names of those present at the meetings, and the proceedings thereof. As soon as practicable after each meeting, the secretary shall cause a copy of the minutes to be forwarded to each director of the Board, and to the Member Agencies. The secretary need not be a director and shall serve at the pleasure of the Board.

6.5 Board Committees
(a) Committees. The Board may create any standing or ad hoc committees as it sees fit. The Board may delegate to any committee the authority to approve any action or transact any business of the Board, except for business that is required by this Agreement to be approved by the full Board.
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(b) Actions of Full Board. Approval of budgets, issuance of any bonds, exercise of eminent domain, and incurrence of any debts, liabilities, obligations, certificates of participation or other evidence of indebtedness as may be set forth in the Authority’s effective purchasing policy and any legislative actions as defined by State law shall require an action of the full Board and shall not be delegated to any Board committees. (c) Procedures. Except for exempt ad hoc committees, all meetings of committees including, without limitation, regular, adjourned regular, and special meetings shall be called, noticed and conducted in accordance with the provisions of the Ralph M. Brown Act, Sections 54950 et seq. of the California Government Code. Committees shall maintain minutes of their proceedings.

6.6 Bylaws. The Board may adopt bylaws and any other regulations, policies, or procedures for the operation of the Authority.

7. Executive Officers and Personnel

7.1 Management Committee. The management of the Authority shall vest in a Management Committee made up of the current City Manager for both Member Agencies or the City Managers of any Member Agencies added to this Agreement. The Management Committee shall be participants in, and oversee all non-Management Committee Executive Officers, and any Executive Officers’ responsibilities as set forth in this Agreement. The Management Committee shall have the power, subject to any Board direction or Board-adopted policies:
(a) To execute any contract up to an amount consistent with any ordinance or rules adopted by the Board establishing the Authority’s purchasing policies and procedures, and/or policies for capital costs of special services, equipment, materials, supplies, maintenance, or repair that involves an expenditure by the Authority within budgetary limits approved by the Board (“Board purchasing policies”);
(b) To hire, terminate, and oversee the performance of the Fire Chief; (c) To expend funds of the Authority subject to any Board purchasing policies and enter into contracts, whenever required for the immediate preservation of the public protection, health, or safety;
(d) To sell any personal property of the Authority up to a value consistent with the Board’s purchasing policies;
(e) To support the Board as determined by the Board in labor negotiations and management;
(f) To administer the priorities and policies established by the Board for fire services of the Authority;
(g) To perform such other duties as may be assigned by the Board, and to report at such times and concerning such matters as the Board may require. 65501.00001\41161259.18

7.2 Executive Officers. The executive officers of the Authority shall include the Management Committee, the Chief Executive Officer, the Fire Chief, the Treasurer, the Auditor/Controller, and such other executive offices as created by the Board. All executive officers shall report to the Management Committee, and the acting Chief Executive Officer. (a) Chief Executive Officer. The Chief Executive Officer will be the City Manager from the Management Committee that is employed by the same Member Agency from which the current Board Chair serves as a city councilmember or Mayor. The Chief Executive Officer shall alternate automatically, serving during the same Chair Term that the Board Chair serves on the Chief Executive Officer’s Member Agency city council. The Chief Executive Officer shall carry out the decisions of the Management Committee and act as the signatory for the Authority on all actions requiring approval of the Management Committee. (b) Fire Chief. The Fire Chief shall be responsible for the proper and efficient operation of the Authority as is or hereafter may be placed in his or her charge, or under his or her jurisdiction or control, pursuant to the provisions of this Agreement, or of any ordinance, resolution, bylaw or minute order of the Board. The Management Committee shall appoint and oversee the performance of the Fire Chief. The Fire Chief, as an at will employee of the Authority, shall report to the Management Committee and Chief Executive Officer, and by extension the Board, on all of the following, in a manner prescribed by the Board in consultation with the Management Committee:
(i) Plan, coordinate, supervise, and evaluate the Authority’s operations, and conduct day-to-day operations of the Authority; (ii) Supervise and manage Authority fire personnel;
(iii) Coordinate and supervise training of fire personnel; (iv) Make recommendations to the Management Committee and Board on Authority operations;
(v) Establish policies and procedures of the Authority to implement directives from the Board and the Management Committee; (vi) In conjunction with the Treasurer, prepare an annual budget for submission to the Management Committee and the Board;
(c) Treasurer. The Director of Administrative Services of Arroyo Grande shall be the Authority Treasurer. The Authority Treasurer shall perform such duties as are set forth in this Agreement and any other duties specified by the Board or as required by the Act, and shall perform the duties specified in Government Code sections 6505 and 6505.5, as amended from time to time. The Authority Treasurer shall be the depositary of funds and shall have custody of all money of the Authority, from whatever source. (i) The Board may at any time select, employ, or appoint a new or different Authority Treasurer who shall be: (1) the Treasurer or Finance Director of one of the Member Agencies; (2) a certified public accountant; or (3) such other officer or employee of one 65501.00001\41161259.18
of the Member Agencies as the Board shall deem qualified to act as the Authority Treasurer, so long as permitted by law.
(d) Auditor/Controller. The Authority Auditor or Authority Controller shall be the same officer or employee of the City serving as the Authority Treasurer. The Authority Auditor or Authority Controller shall perform such duties as are set forth in this Agreement and any other duties specified by the Board or as required by the Act. (i) The Board may at any time select, employ, or appoint a new or different Authority Auditor or Authority Controller who shall be: (1) the auditor or controller of one of the Member Agencies; or (2) such other officer or employee of one of the Member Agencies as the Authority shall deem qualified to act as Authority Auditor or Authority Controller, so long as permitted by law.
(e) Secretary. The Board shall appoint, or designate to the Management Committee in consultation with the Fire Chief to appoint a Secretary who shall serve at the pleasure of the Board. The Secretary shall be the official custodian of records for the Authority, make all filings requested by the Board and legally required, and be responsible for agendas and meeting minutes as provided in Section 6.4(f) of this Agreement.

7.3 Official Bond. Pursuant to Government Code section 6505.1, the public officer, officers or persons who have charge of, handle or have access to any property of the Authority shall file an official bond in an amount of $25,000, unless fixed by the Parties to this Agreement in a different amount by unanimous decision of the Board.

7.4 Other Officers and Staff
(a) Attorney for Authority. The Attorney for the Authority shall be appointed by the Board of Directors. The Attorney for the Authority or a designated deputy shall attend all meetings of the Board of Directors; provided, however, that the absence of the Authority Attorney shall not affect the validity of any meeting. The Attorney shall perform such other duties the Board of Directors specifies.
(b) Officers and Professional Services. The Board may select, appoint, or employ any other officers, or professional and expert services as may be necessary or appropriate to accomplish the purposes of this Agreement, including but not limited to, legal counsel, financial consultants, accountants, engineers, architects, contractors, appraisers and any other consultants and advisors, which may be a corporation, partnership, firm or individual. The Board may delegate to the Fire Chief or to a committee the authority to hire officers and professional services.
(c) Employees of Authority. Employees of the Authority are (i) those individuals employed by Arroyo Grande, but assigned to the Authority between the Authority and Arroyo Grande referenced in Exhibit A of this Agreement; and (ii) those individuals employed directly by the Authority. The Parties’ governing bodies may meet in closed sessions for the purpose of providing input to the Board regarding the terms of compensation for Authority employees.
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(d) Shared Resources. The Board may contract with a Member Agency, or its officers, to provide necessary administrative services to the Authority as appropriate. All personnel employed by the individual Member Agencies shall remain employees of their respective Member Agency unless and until the Authority affirmatively employs such personnel pursuant to its powers. No express or implied employment contract between any Member Agency employee and the Authority exists as a result of this Agreement.

7.5 Interference Prohibited. The Board and the Member Agencies shall deal with the administrative services of the Authority (which includes the Authority’s Treasurer, Auditor/Controller and Secretary) only through the Management Committee who may delegate to the Fire Chief and their responsibility set forth herein, except for the purpose of inquiry.

Neither the Board, the governing body of any Member Agency, nor any individual members of either shall give orders to any subordinate of the Fire Chief.

7.6 Rules and Regulations. The Board shall forthwith adopt rules and regulations and perform all other acts necessary so that the Authority may hire personnel. Existing personnel operations remain in effect and control at the time this Agreement takes effect, until such time that the Board adopts rules and regulations that augment those existing personnel operations.

8. Equipment and Facilities.

8.1 Fire Stations and Other Real Property
(a) Member Agency Buildings and Structures. Buildings and structures owned by Member Agencies may be utilized for the Authority’s use, but shall remain the property of the respective Member Agency. Each Member Agency shall be responsible for the maintenance and insurance of Member Agency buildings. The Authority shall not directly own, maintain, or insure any existing building or structure, unless the Authority and a Member Agency expressly agree in writing that the Authority accepts ownership, responsibility for maintenance, or responsibility to insure a particular building or structure. Any building constructed or owned by the Authority after the Formation Date shall be the property of the Authority, and in the event of dissolution of the Authority, shall be disposed of as provided in this Agreement. (i) Maintenance By Members. The respective Members owning a fire station shall be responsible for the maintenance, repair, replacement, and improvements to the building structure, mechanical systems, electrical, plumbing, and exterior infrastructure (i.e., roof coverings, driveway, etc.). The Members are not responsible for (i) the maintenance or repair of any systems that have been installed by the Authority and are unique to fire service operations (e.g., dispatch/radio systems, computer networks, etc.), and (ii) the cost of performing any such maintenance or repairs caused by the negligence of the Authority or its employees, agents, servants, licensees, contractors, or invitees.
(ii) Maintenance By Authority. The Authority shall be responsible for routine maintenance of fire stations, interior decorating, landscaping, and fire alarm systems. The Authority is also responsible for the maintenance, repair, replacement, and improvements of the dispatch telecommunication systems and all systems that have been installed by the Authority 65501.00001\41161259.18
which are unique to fire service operations (e.g., dispatch/radio systems, computer networks, etc.).
(b) Contributions of Real Property. Either Member Agency may contribute real property to the Authority for the Authority’s use. The Member Agency owning the interest in the real property shall continue to own said interest, unless the Member Agencies and Authority agree otherwise. The Board and the Member Agency owning the interest shall agree on the terms of the contribution.
(c) Lease or Purchase of Additional Stations. The Authority shall be authorized to lease, purchase, or obtain any other interest in real property for the Authority’s uses.

8.2 Equipment and Other Personal Property
(a) Equipment Provided by Member Agencies. As soon as reasonably practicable, the Authority shall inventory all equipment owned by the Member Agencies that is available for the Authority’s use. All Member Agency equipment shall remain the property of that Member Agency, unless the Member Agencies otherwise agree. The Member Agency may contribute additional equipment for the Authority’s use upon terms agreed between the Member Agencies and the Authority. The Authority may rent or borrow equipment from the Member Agencies for temporary use. All equipment owned by the Authority or subject to an equipment lease for financing purposes, shall remain the property of the Authority. (b) Acquisition of Equipment. The Authority may acquire any equipment or other personal property for the Authority’s use.

8.3 Separate Property of the Parties. Exhibit C, attached and incorporated by reference, establishes the property which is owned by a Member Agency and not the Authority, notwithstanding that the Authority may use that property.

9. Principal Offices.

9.1 Principal Governance and Business Office. The principal business office and governance office of the Authority at the date this Agreement is effective shall be Authority’s Station 1, at 140 Traffic Way, Arroyo Grande, California, 93420, (“Principal Governance and Business Office” or “Principal Office”) or as otherwise determined by the Board. The Board may change the Principal Office, from time to time, and from one location to another, within the Authority Area. Any change shall be noted by the Authority Secretary and reflected in Authority document, but shall not be considered an amendment to this Agreement.

10. Financial Provisions.

10.1 Administrative services shall be provided by, and allocated between the Member Agencies as shown on Exhibit A, attached and incorporated by reference to this Agreement.

10.2 Operation and capital improvements costs shall be allocated among the jurisdictions in accordance with the cost-sharing formula in Exhibit B, adopted by the Board and 65501.00001\41161259.18
the governing bodies of the Member Agencies, and attached and incorporated by reference into this Agreement.

10.3 Member Agencies will be billed quarterly by the Authority Treasurer, in accordance with the provisions of Exhibit A and B. Member Agencies agree to pay the invoices on a quarterly basis.

10.4 Capital Purchases. Capital purchases that solely benefit a Member Agency shall be funded by that Member Agency. All other capital purchases shall be funded on terms established by the Board. The funding of capital purchases that are not budgeted shall be separately approved by each Local Sub-Committee.

10.5 Budget.
(a) The Board shall initially adopt a budget within 30 days of execution of this Amended and Restated JPA. The Board shall adopt a budget for maintenance and operation costs, and costs of special services in time to allow review by the Member Agencies prior to April 30th of each fiscal year. The Authority’s fiscal year shall be July 1 to June 30. Each Member Agency shall prepare its own annual budget for capital costs related to Authority services. Subject to the exception provided below in Section 10.5(b), no expenditures may be made by or on behalf of the Authority unless authorized by a budget or budget amendment approved by the Board.

10.6 Invoicing. Upon completion of the initial budget, and thereafter at such other intervals as determined appropriate by the Board, the Authority shall determine the amount of the budget expenses payable during the ensuing period pursuant to each Member Agency’s share of expenses required by this Agreement, and the budget approved by the Board. The Authority shall submit to each Member Agency an invoice showing the Member Agency’s share for the applicable period together with a calculation of the Member Agency’s share. Each Member Agency shall pay to the Authority the amount invoiced within 30 days after the date of the invoice. Any amount not paid within 60 days of the date of an invoice shall be delinquent.

10.7 Default and Delinquency. Any Member Agency which defaults in its obligation to pay or advance any amounts due pursuant to this Agreement after such amounts have become delinquent shall be deemed to have waived and relinquished any rights and benefits it may have under this Agreement. Any defaulting Member Agency shall be liable to the Authority for interest on the unpaid amount at the rate of 10% per annum, or the maximum rate allowed by law if it is less than 10% per annum, until the overdue invoice amount is paid in full. If the Agreement is terminated, then the defaulting Member Agency shall remain liable for payment of its share of debts, liabilities and obligations under this Agreement incurred prior to the date of termination, plus interest.

10.8 Accounting. The Authority shall maintain strict accountability of all funds, receipts and expenses, and shall keep and maintain appropriate records and accounts of all funds, receipts and expenses under this Agreement in accordance with generally accepted accounting practices for California public agencies and the requirements of the Act. The Authority shall 65501.00001\41161259.18
allow any Member Agency, or any of its employees, accountants, attorneys or agents to review, inspect, copy and audit any such records and accounts.

10.9 Record of Contributions. The Authority shall maintain records of all fire prevention and suppression equipment, medical equipment, and associated property and assets contributed by each Member Agency and by the Authority, including any staff resources contributed to the Authority.

10.10 Audit. The records and accounts of the Authority shall be audited annually by an independent certified public accountant and copies of such audit reports shall be filed with the State and each Member Agency pursuant to the requirements of Section 6505 through 6505.6 of the Government Code. The audit shall conform to generally accepted auditing standards. Such report shall be filed within 12 months after the end of the fiscal year or years under examination, and no later than fifteen (15) days after receipt of such audit reports by the Authority.

10.11 Expenditures. The Board shall establish and comply with a system and procedure for the review and approval of Authority expenditures and claims and the drawing and signing of Authority warrants or checks. All expenditures shall be consistent with the approved budget, except as otherwise determined by the Board.

11. Debts, Liabilities, Obligations. Subject to all applicable laws, including but not limited to Government Code section 6508.1, all debts, liabilities, and obligations of the Authority shall be those of the Authority, and do not constitute debts, liabilities, or obligations of any one or more of the Member Agencies. The responsibilities and obligations of each Member Agency to this Agreement shall be solely as provided in this Agreement, or as provided in supplemental agreements or amendments as shall be executed by the Member Agencies. As required by law, the Member Agencies are liable for CalPERS liability of the Authority as follows:

11.1 The Authority shall use the City of Arroyo Grande’s CalPERS contract for Employees of the Authority.

11.2 If a Member Agency withdraws from the Authority, the withdrawing Member Agency shall be liable for, and upon demand shall promptly pay, its share of the existing and/or contingent liabilities of the Agency as of the effective date of the withdrawal. The withdrawing Member Agency’s share of liabilities shall bear the same relationship to the whole as its annual contribution for the operation of the Authority bears to the whole of all annual contributions.

11.3 If a Member Agency withdraws from the Authority, but the Authority does not dissolve or terminate, and the Authority has established a plan of periodically paying down part of its unfunded accrued pension liability (“UAPL”) debt to CalPERS, the withdrawing Member Agency shall continue to be liable, and to promptly pay thereafter to Authority upon being billed, its share of the Authority’s UAPL based upon its prior years of membership. The withdrawn Member Agency’s share of such UAPL expense shall be the determined according to the same formula used by the Authority to allocate such costs during the final year of the withdrawing Member Agency’s membership.

11.4 The withdrawing Member Agency shall also be liable for any additional Authority expenses as of the effective date of the withdrawal that exclusively benefit the 65501.00001\41161259.18
withdrawing Member Agency as well as 100% of any early termination fees that accrue due to the withdrawal of the Member Agency.

11.5 Until such time that the Authority utilizes a different contract approved by its Board, if the City of Arroyo Grande dissolves, terminates, or ends its contractual relationship with CalPERS(“the triggering events”), Government Code sections 6508.1 and 6508.2 will require all existing Member Agencies, and certain past Member Agencies, to each assume individual financial responsibility for its proportionate share of the UAPL then in effect. By joining Authority, each Member Agency promises and represents that upon occurrence of a triggering event: (i) it will undertake this obligation when requested by either CalPERS or the Authority; and (ii) that unless the Board determines differently, the proportionate share each Member Agency will assume shall be based upon the same formula used to determine each Member Agency’s share of the Authority’s last periodic UAPL payment to CalPERS in the year prior to the triggering event.

11.6 Prior to Execution. The debts, liabilities and obligations of each Member Agency in existence or accrued as of the full execution of this Agreement shall remain the debts, liabilities and obligations of that Member Agency and shall not be assumed by or transferred to the Authority. After the execution of this Agreement by both Member Agencies, however, any existing debt, liability or obligation of the Member Agencies may be expressly approved or accepted by the Authority by a formal written action of the Board.

11.7 Fire Engines 2 and 3, Equipment Lease Payments. Notwithstanding any other provisions of this Agreement to the contrary, the Parties mutually agree and understand that as a result of any dissociation, withdrawal or termination of this Agreement by a withdrawing member agency, that withdrawing member agency will not be obligated for future payment lease obligations for Engines 2 and 3 that remain in the custody, control, and possession of the Authority.

12. Indemnity and Hold Harmless; Insurance.

12.1 Indemnification of Member Agencies. The Authority shall indemnify, defend and hold harmless the Board of Directors, the individual Member Agencies, and their members, officers, directors, employees and agents from and against any and all liability, loss, damages, expenses, costs (including, without limitations, costs and fees of litigation or arbitration) of every nature, arising out of any act or omission related to this Agreement, any individual Member Agency, or their members, officers, directors, employees and agents.

12.2 Indemnification for Prior/Separate Acts. Each Member Agency (Indemnifying Member Agency) shall defend, indemnify and hold harmless the Authority, each Director, the other Member Agency, and the Authority and each Member Agency’s respective Council or governing board members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries and liabilities of every kind, including attorney’s fees and expert’s fees, arising directly or indirectly from the Indemnifying Member Agency’s acts or omissions occurring prior to the effective date of the Authority’s initial Effective Date of June 7, 2010, or that otherwise occur outside the scope of this Agreement. 65501.00001\41161259.18

12.3 Insurance. The Authority shall acquire insurance protection as is necessary to protect the interests of the Authority and the Member Agencies. The premiums for insurance acquired by the Authority, as well as any anticipated funds necessary to pay for self-insured retentions and deductibles for insurance, shall be determined based upon actuarial studies and included in the budget. Any adjustments to the budget to pay for insurance premiums, selfinsured retentions, and deductibles shall be prepared by the Management Committee for presentation to the Board of Directors for consideration and approval.

12.4 Survival. These defense, indemnification, and hold harmless obligations shall survive and continue in full force and effect after withdrawal of any Member Agency from this Agreement or termination of this Agreement for any reason with respect to any negligent acts, errors or omissions that occurred before the date of such withdrawal or termination.

13. Termination.

13.1 Termination.
(a) When there are only two Member Agencies in the Authority, either Member Agency may unilaterally terminate the Agreement with an effective termination date of June 30 of any Fiscal Year, provided that written notice is provided to, and received by, the Authority and the other Member Agency by the terminating Member Agency no later than June 30 of the prior Fiscal Year, as expressed by vote of the governing body of the terminating Member Agency. Any terminating Member Agency shall be obligated to pay that Member Agency’s contributions for the Fiscal Year ending on the effective date of termination. (b) The Member Agencies may all jointly agree by written consent to terminate the Agreement, as expressed by resolution of the governing boards of all Member Agencies (passed by vote of the membership of the governing body of each Member Agency).

Such termination shall provide for adequate time to wind-up the affairs of the Authority and distribute any assets pursuant to this Agreement. The Member Agencies shall be obligated to pay their contributions until the effective date of termination.

13.2 Disposition of Member Agencies’ Property Upon Termination. Any property that was acquired by either Member Agency prior to entering this Agreement, and that is required either by this Agreement or by any subsequent act or Agreement to remain the property of the Member Agency, shall be returned to the Member Agency upon termination of this Agreement.

Exhibit C lists the separate property of the Member Agencies, but a Member Agency may prove that it, and not the Authority, owns certain property by providing documentation establishing such ownership. If property is not listed in Exhibit C, and no documentation establishes ownership of that property, the property will be presumed to be owned by the Authority.

13.3 Disposition of Authority Property Upon Termination. Upon termination of this Agreement, the assets and property of the Authority shall be distributed as follows:
(a) First, if either Member Agency is in default of its obligation to pay or advance any amounts due to Authority pursuant to this Agreement, then any funds or assets of 65501.00001\41161259.18
the defaulting Member Agency shall be applied to the Authority in satisfaction of any such delinquency.
(b) Second, any other funds on hand shall be used to liquidate and wind-up the affairs of the Authority.
(c) Third, any surplus funds on hand remaining after satisfaction of subsections (a) and (b) above shall then be returned to the Member Agencies in proportion to their proportional financial contributions made to the Authority. (d) Fourth, any property acquired by either Member Agency prior to entering this Agreement shall be returned to the Member Agency which owned the property at the Formation Date; provided, however, that if any such property has been substantially improved, repaired or modified by Authority funds, it shall be distributed pursuant to subsection (e) below. (e) Fifth, any remaining property and assets shall be divided and distributed amongst the Member Agencies pursuant to separate agreement of the Member Agencies entered into at that time. If such subsequent agreement is not successfully negotiated and agreed to within a reasonable period of time, then the remaining property and assets shall be sold and the net proceeds from any sale shall be distributed among the Member Agencies in proportion to their financial and equipment contributions made to the Authority during the operation of this Agreement and any ancillary agreements.

14. Conflict Resolution. The Member Agencies agree that any and all disputes, claims or controversies between the Member Agencies arising out of or relating to performance of this Agreement, shall be resolved pursuant to the conflict resolution provisions as follows:

14.1 The Member Agencies shall first meet and attempt in good faith to negotiate and resolve any dispute arising out of or relating to this Agreement, subject to subsequent approval of any such resolution by the respective governing boards. The Member Agencies may, in each Member Agency’s respective discretion, appoint either an alternative representative of the governing body or an ad hoc committee constituting less than a quorum of the governing body to meet and attempt in good faith to negotiate and resolve any dispute arising out of or relating to this Agreement, subject to subsequent approval of any such resolution by the respective governing boards.

14.2 If the matter is not resolved by negotiation pursuant to Section 14.1 above, then the Member Agencies agree that the matter shall be submitted to mediation within a reasonable period of time after receipt of a written request from one Member Agency to the other Member Agency requesting such mediation. The Member Agencies shall cooperate with one another in selecting a mediator and in scheduling the mediation proceedings. Should the Member Agencies be unable to agree upon a mediator, they shall agree upon a mediation service and shall have that service select a mediator for them. The Member Agencies agree that they shall participate in the mediation in good faith and that they will share equally in the costs of mediation. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the Member Agencies, their agents, employees, experts and attorneys, and by the mediator or any employees of the mediator, are confidential, privileged and inadmissible for any 65501.00001\41161259.18
purpose, including impeachment, in any litigation or other proceeding involving the Member Agencies, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

14.3 If the matter is not resolved by negotiation pursuant to Section 14.1 above, or by subsequent mediation pursuant to Section 14.2 above, then the Member Agencies may submit the matter to binding or non-binding arbitration, but only if both Member Agencies agree to submit the particular controversy to arbitration. Neither Member Agency shall have a right to submit any controversy to arbitration without the other Member Agency’s consent.

15. New Members.

15.1 Addition of New Members. The Authority may set the terms and conditions for admitting new members (a “New Member Agency”) that it deems appropriate either by amendment to this Agreement or the Bylaws. New members may only be admitted with unanimous approval of the Board and the governing bodies of each Member Agency. Approved new Members shall execute a copy of this Agreement, as amended, and shall thereafter be subject to all terms and conditions contained herein.

15.2 Construction. The terms of this Agreement shall be construed so as to apply to new Members the same as to the initial Member Agencies to the Agreement. New Members shall have the rights and obligations accorded to “Members” or “Member Agencies (whether singular or plural) under this Agreement.

15.3 Cost Share. Prior to the acceptance of any New Member Agency, the proposed New Member Agency shall pay an amount, as determined by the Board, for the proposed New Member Agency’s fair share of any start-up costs or other initial investments incurred by the Authority to admit the New Member Agency.

15.4 Funding of Services. The Authority shall not provide any fire protection or related services within a New Member Agency’s geographic area unless and until the New Member Agency deposits sufficient funds to cover the estimated costs of services for a period of time as determined by the Board, to be not less than six (6) months.

16. Withdrawal. Notwithstanding any other provision of this Agreement, any Member Agency may withdraw from the Authority by providing the Authority with written notice of its intent to withdraw consistent with Section 13.1 of this Agreement, Termination. This includes providing written notice no later than June 30 of any Fiscal Year, a continuing obligation to pay that Member Agency’s contributions for the Fiscal Year ending on the effective date of termination, and following Section 13.1.b. for the procedure where the Members Agency may jointly agree by written consent on the withdrawal of a Member Agency. A withdrawal from the Authority constitutes a withdrawal of that Member Agency’s representatives from the Board of Directors.

17. Effect of Withdrawal. The withdrawal of a Member Agency shall not terminate its responsibility to contribute its share of any obligation incurred by the Authority, including amounts determined by the Board for (1) liabilities and claims accrued during the time the agency was a Member Agency or (2) budgeted expenses for the Fiscal Year in which notice of 65501.00001\41161259.18
intent to withdraw is given. Except as the withdrawing Member Agency may agree, in writing, with the Board, the withdrawing Member Agency shall automatically relinquish all rights as a Member Agency under this Agreement, on the effective date of the withdrawal. Upon termination of this Agreement, a Member Agency that has withdrawn will be treated like all other Member Agencies for purposes of disbursement of Authority assets, unless otherwise agreed in writing and the remaining Member Agencies of the Authority can maintain the name “Five Cities Fire Authority.”

18. Conflict of Interest Code. The Authority adopts as it Conflict of Interest Code the Fair Political Practices Commission Model Conflict of Interest Code with appropriate substitution regarding references to the Board and Authority officers.

19. General Provisions.

19.1 Integration. This Agreement constitutes the sole, final, complete, exclusive and integrated expression and statement of the terms of this contract among the Member Agencies concerning the subject matter addressed herein, and supersedes all prior negotiations, representations or agreements, either oral or written, that may be related to the subject matter of this Agreement, except those other documents that are expressly referenced in this Agreement.

19.2 Headings. The section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

19.3 Consents. Whenever any consent and/or approval is required under this Agreement from any Member Agency, said consent and/or approval shall not be unreasonably withheld.

19.4 Construction and Interpretation. It is agreed and acknowledged by the Member Agencies that this Agreement has been arrived at through negotiation, and that each Member Agency has had a full and fair opportunity to revise the terms of this Agreement. Consequently, the normal rule of construction that any ambiguities are to be resolved against the drafting Member Agency shall not apply in construing or interpreting this Agreement.

19.5 Waiver. The waiver at any time by any Member Agency of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or matter.

19.6 Remedies Not Exclusive. The remedies provided in this Agreement are cumulative and not exclusive, and are in addition to any other remedies that may be provided by law or equity. The exercise by either Member Agency of any remedy under this Agreement shall be without prejudice to the enforcement of any other remedy.

19.7 Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

19.8 Successors and Assigns. Except as otherwise provided by law, the rights and duties of the Member Agencies under this Agreement shall not be assigned or delegated without 65501.00001\41161259.18
the prior written consent of the other Member Agency. Any attempt to assign or delegate such rights or duties in contravention of this Agreement shall be null and void. Any approved assignment or delegation shall be consistent with the terms of any contracts, resolutions, indemnities and other obligations of the Authority then in effect, and may be subject to such additional reasonable conditions of approval imposed by the Member Agency approving the assignment or delegation.

19.9 No Third Member Agency Beneficiaries. This Agreement shall not be construed to create any third party beneficiaries. This Agreement is for the sole benefit of the Member Agencies, and their permitted successors, transferees and assignees, and no other person or entity shall be entitled to rely upon or receive any benefit from this Agreement or any of its terms.

19.10 Amendment. This Agreement may be modified or amended only by a subsequent written agreement approved by the governing board of each Member Agency and executed by both Member Agencies pursuant to the terms and conditions of this Agreement.

19.11 Governing Law and Venue. Except as otherwise required by law, this Agreement shall be interpreted, governed by, and construed under the laws of the State of California. The County of San Luis Obispo shall be the venue for any litigation concerning the enforcement or construction of this Agreement.

19.12 Attorney Fees. In the event any legal action is brought to enforce or construe this Agreement, the prevailing party shall be entitled to an award of reasonable attorney fees, expert witness and consulting fees, litigation costs and costs of suit.

19.13 Notice. Any notice, demand, invoice or other communication required or permitted to be given under this Agreement shall be in writing and either served personally or sent by prepaid, first class U.S. mail to the City Clerk and City Attorney of each Member Agency.

Any notice or other communication served by personal delivery shall be deemed received when actually delivered. Any notice or other communication shall be deemed as received three days after deposit in United States mail, postage prepaid, return receipt requested.

19.14 Counterparts. This Agreement may be executed by the Member Agencies in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. [signature page follows]
65501.00001\41161259.18
IN WITNESS WHEREOF, the Member Agencies hereto have executed this Joint Exercise of Powers Agreement as of the date last executed as set forth below.

CITY OF GROVER BEACH
By
Mayor,
Dated
ATTEST:

By
City Clerk
APPROVED AS TO FORM:

City Attorney

CITY OF ARROYO GRANDE
By
Mayor
Dated
ATTEST:

By
City Clerk
APPROVED AS TO FORM:

City Attorney
65501.00001\41215817.1

EXHIBIT A

ADMINISTRATIVE SERVICES
Administrative services shall be provided to the Authority by the Members as follows:

1. Personnel. All personnel working for the Authority will be employed by the City of Arroyo Grande. Personnel, benefits, payroll, and workers compensation matters shall be administered by Arroyo Grande subject to a written agreement between the Authority and the City of Arroyo Grande. The City of Arroyo Grande shall assign all fire service employees on a full-time basis to carry out the functions of this Agreement.

Furthermore, under such written agreement, the City of Arroyo Grande will assign all of its responsibilities of the appointment, promotion, management, training, supervision, evaluation, discipline, and termination of employees as well as labor negotiations with represented employees to the Authority under the Authority’s chain of command and decision making process.

2. Finance. The City of Arroyo Grande shall provide financial services. Financial services shall include the provision of payroll, accounts payable, and accounts receivable services, as well as, any financial reporting and auditing services that may be required.

3. Information Technology. The City of Arroyo Grande shall provide information technology services. Information Technology shall include monitoring and maintaining the company computer systems, installation and configuration of hardware and software, and solving technical issues as they arise.

4. Indirect Contribution. Payment for the services as described in Exhibit A shall be the responsibility of the Member providing the services as referenced in Exhibit A. The payment for such services by said agencies shall be recognized as an indirect contribution made by the respective agency. All indirect contributions shall be recognized in the Authority's budget as a contribution from the respective agency and shall be deducted from the contributing agency's proportional allocation of costs for the operation of the Authority.

Attachment 1 - 2
65501.00001\41215817.1

EXHIBIT B

FUNDING FORMULA
Effective July 1, 2023, each Member Agency shall pay for the ongoing costs of the Five Cities Fire Authority according to the following formula to be calculated annually when the budget is prepared:

1. 58% of the total costs shall be paid by the City of Arroyo Grande;

2. 42% of the total costs shall be paid by the City of Grover Beach.

Any revenue received by the Authority, such as through a contract for service, reimbursements received for strike team deployment or automatic aid, grant funding, or fees for service, shall reduce the total costs that are then allocated to the Member Agencies according to the above formula.

The funding formula contained herein shall be reevaluated by the Member Agencies at least every two years, prior to the Member Agencies’ biennial budget adoption. 65501.00001\41215817.1

EXHIBIT C

INVENTORY OF SEPARATE PROPERTY OF THE

MEMBER AGENCIES
The following inventory of each Member Agency will become the property and responsibility of the Authority, including but not limited to maintenance, insurance, and replacement:

Arroyo Grande Grover Beach
Engine 6691 – 2007 Pierce Type I Engine Bauer Air-Fill Compressor – GB Station Rescue 6652 – 1996 E-One Rescue
Utility 6632 – 1995 Ford F-250 Pick-Up
65501.00001\41215817.1

EXHIBIT D
The following map identifies the service areas of the Member Agencies for the JPA.

Contractual services provided to areas outside of these Member Agencies are not depicted on this map.
65501.00100\41328557.11
1 AGREEMENT TO PROVIDE FIRE SERVICES

BETWEEN THE FIVE CITIES FIRE AUTHORITY AND

OCEANO COMMUNITY SERVICES DISTRICT
THIS AGREEMENT is made and entered into this ____ day of June 2023, (“Effective Date”) by and between the Five Cities Fire Authority ("FCFA"), a California Joint Powers Authority as authorized under Government Code Sections 6500 et. seq., and Oceano Community Services District ("Oceano"), a County of San Luis Obispo Community Services District (collectively referred to as "the Parties").

RECITALS
WHEREAS, the Parties are public entities organized and operating under the laws of the State of California; and
WHEREAS, the Parties have the authority to perform fire protection activities, certain emergency medical services and other related activities for their respective agencies, including those described within Exhibit “B” (collectively, “FCFA Services”); and
WHEREAS, since June 7, 2010, Oceano has been a member agency of the Five Cities Fire Authority along with the Cities of Grover Beach and Arroyo Grande; and
WHEREAS, FCFA’s Joint Exercise of Powers Agreement was amended by the Parties to terminate Oceano’s participation as a member agency in FCFA commencing July 1, 2023; and
WHEREAS, the Parties desire for FCFA to continue supplying fire and emergency medical services to Oceano for a temporary period of time consistent with the terms and conditions of this Agreement; and
WHEREAS, Oceano remains subject to all “Wind Down Period” obligations set forth within the Five Cities Fire Authority Amended and Restated Joint Powers Authority Agreement, and specifically Section 5 of the Third Amendment to the FCFA Joint Powers Agreement incorporated herein as Exhibit “C”, Oceano’s withdrawal from the FCFA shall not absolve Oceano from any Liabilities, defined to include but not limited to pension/CalPERS, accrued fringe benefits, and other liabilities incurred arising out of Oceano’s participation in the FCFA since the time the FCFA was created on June 7, 2010 through the date of Oceano’s withdrawal from the FCFA on June 30, 2023; and
WHEREAS, this agreement is entered into pursuant to Government Code § 54981 and § 55632.

Attachment 2 - 1
65501.00100\41328557.11
2 AGREEMENT
NOW, THEREFORE, the above “WHEREAS” provisions are incorporated herein with the same force and effect as any other term and condition of this Agreement and for and in consideration of the mutual advantages to be derived therefrom, and in consideration of the mutual covenants herein contained, it is agreed by and between the Parties hereto as follows:

ARTICLE I

PROVISION OF SERVICES

1.1 Scope of Services. FCFA shall provide Fire and Emergency Medical Services within the jurisdictional area of Oceano. See jurisdictional map entitled Exhibit “A” incorporated by reference herein as if set out in full. "Fire and Emergency Medical Services" shall mean those services identified in Exhibit “B”.

1.2 Fire Chief. FCFA's Fire Chief or his/her designee shall be immediately available for response and management of emergency incidents as necessary to provide incident command and coordination functions within the jurisdictional boundaries of Oceano over the term of this Agreement.

1.3 Staffing. FCFA shall provide, in its sole discretion, sufficient staffing personnel, meeting minimum federal and state-mandated training requirements for their respective classifications and responsibilities, to provide Fire Services, pursuant to this Agreement, to Oceano for the term of this Agreement. The staff shall consist of personnel assigned at the sole discretion of FCFA but at least one member of every shift shall be qualified as an Emergency Medical Technician.

ARTICLE II

PAYMENT FOR SERVICES

2.1 Compensation for Services. Oceano shall compensate FCFA for all Fire and Emergency Medical Services performed under this Agreement in a fixed amount of One Million One Hundred Fifty Thousand Dollars ($1,150,000.00). Oceano shall pay, on a quarterly basis (every three months from the effective date of this Agreement) the sum of Two Hundred Eighty-Seven Thousand Five Hundred Dollars and Zero Cents ($287,500) for the Fire, Emergency Medical Services and any related FCFA Activities provided by FCFA. In the event the Fire, Emergency Medical Services and any related FCFA Activities are extended in accordance with Section 5.2, the compensation that FCFA will be willing to accept will be no less than the actual cost of service, in the amount or formula determined by FCFA that is presented to the County of San Luis Obispo for purposes of evidencing Oceano’s proportionate 65501.00100\41328557.11
3 share of the actual cost of service, which will be incorporated in this Agreement as a new Exhibit “D” during the sixty (60) day meet and confer period described in Section 5.2 below. FCFA shall submit quarterly invoices to Oceano for the quarterly payment amount. Payments are to be made within thirty (30) days of FCFA mailed invoice to Oceano, and any non-payment in excess of sixty (60) days from the date of FCFA’s mailed invoice shall be considered a default under this Agreement and shall accrue an additional ten (10) percent charge as described herein.

ARTICLE Ill

PROPERTY USED FOR FIRE SERVICES

3.1 Fire Station. FCFA will utilize the Fire Stations number 1 and 2 located respectively at 140 Traffic Way, Arroyo Grande and 701 Rockaway Ave. Grover Beach, California, as its primary locations for the provision of Fire, Emergency Medical Services and FCFA Activities contemplated by this Agreement. Oceano retains fee title to the Fire Station number 3, but hereby grants FCFA an unrestricted license for full use of the apparatus bay at Station number 3, located at 1655 Front Street, Oceano for general storage purposes in furtherance of this Agreement. Oceano shall also make available for FCFA training and storage, the well site no. 8 property located on South 13th Street. FCFA’s use of Station number 3 and well site no. 8 shall not be subject to any rental or other cost and shall be part of the consideration paid by Oceano for Fire, Emergency Medical Services and FCFA Activities rendered by FCFA to Oceano. Oceano agrees to maintain the Fire Station number 3 and well site no. 8, in a safe, habitable, and serviceable condition at all times.
(a) Nothing herein shall in any way limit Oceano's right to grant concurrent use of the Fire Station number 3 to any other party, that does not unreasonably interfere with FCFA’s use of the apparatus bay for storage. FCFA shall not unreasonably interfere with the use of the Fire Station for any other purposes by Oceano.
(b) If Oceano grants rights to a third party for concurrent use of the Fire Station number 3, Oceano shall take all reasonable steps to ensure that the third party does not interfere with the use of the Fire Station for FCFA storage purposes and shall provide FCFA at least ten (10) days advanced notice of the use granted to a third party.
(c) In addition to the license granted in Section 3.1 above and subsections (a) and (b), Oceano shall further grant full operational use of Fire Station No. 3 for emergency medical services and fire suppression including all fire suppression equipment, fire engines, housing and administrative services necessary to operate the fire station from the Effective Date of this Agreement to June 30, 2023.
65501.00100\41328557.11
4 3.2 Maintenance and Replacement. FCFA, consistent with the Amended and Restated Joint Exercise of Powers Agreement, dated ______, 2023, shall bear all costs to maintain, repair and replace all facilities, vehicles, equipment and apparatus owned by FCFA and designated for use in the Fire, Emergency Medical Services and FCFA Activities.

ARTICLE IV

RELATIONS OF PARTIES

4.1 Special Relationship. The Parties will agree this Agreement does not create a “special relationship” as the term is defined by Federal or California law, between Oceano or any other agency, or between the Parties’ officials, officers, employees, or successors or with any third party as a result of this Agreement.

Oceano does not participate nor is a member of FCFA and retains no rights or title in the FCFA Joint Powers Authority after June 30, 2023. Notwithstanding the foregoing, nothing within this Agreement absolves Oceano from obligations and/or CalPERS pension liabilities incurred and owed to FCFA, under the Five Cities Fire Authority Joint Exercise of Powers Agreement, over the time period Oceano was a member agency.

ARTICLE V

TERM OF AGREEMENT

5.1 Term. The term of this Agreement shall commence on the earlier of July 1, 2023 or the date on which both Parties have fully executed this Agreement, through June 30, 2024 (‘’Initial term”).

5.2 Renewal or Extension of Agreement. The Term of this Agreement may be extended upon mutual agreement of both Parties. Upon written notice of either Party, at ninety (90) days before the end of the Initial Term, the Parties shall meet and confer for a period of up to sixty (60) days regarding extending the term of the Agreement and the terms and conditions of the extension. If agreement cannot be reached regarding extension or renewal, the Agreement shall terminate with no further obligations of either Party at the end of the Initial Term. If the Agreement is extended by the Parties (the “Extended Term”), notwithstanding any other provisions of this Agreement, the Parties anticipate that the term for the Extended Term will be on a month-to-month basis commencing upon the end of the Initial Term.

5.3 Termination. During the initial term, if either Party seeks to terminate this Agreement, the notice to terminate shall be in writing and shall be at least one hundred twenty (120) days before the planned termination date. If Oceano is not current on all payments owed and is in default under this Agreement FCFA may terminate this 65501.00100\41328557.11
5 Agreement immediately. If during the initial term, LAFCO makes a final determination as to Oceano's application for divestiture of fire services, and the decision of LAFCO would by operation of law or by lawful conditions imposed by LAFCO as part of their decision, preclude Oceano from participating as a Party to this Agreement or restrict their ability to enforce this Agreement, this Agreement shall terminate. Nothing within this section shall absolve Oceano of the obligation to pay for any and all FCFA services rendered under this Agreement prior to termination resulting from LAFCO'S decision causing termination or a Party initiated termination.

ARTICLE VI

INDEMNIFICATION AND INSURANCE

6.1 Mutual Indemnification.
(a) To the fullest extent permitted by law, each Party (the “Indemnifying Party”) shall indemnify, defend and hold harmless the other party, in proportion to fault, against any and all liability for claims, demands, fines, penalties, expenses, losses, causes of action, costs or judgments·(direct, indirect, incidental or consequential damages) involving bodily injury, personal injury, death, property damage or other costs and expenses (including reasonable attorneys' fees, court costs and expenses) arising or resulting from: 1) the acts or omissions of the Indemnifying Party’s own officers, agents, employees or representatives carried out pursuant to the obligations of this Agreement; (b) any negligent, reckless or intentionally wrongful act or omission to act by the Indemnifying Party; and (c) violations of law by the Indemnifying Party.
(b) Notwithstanding the foregoing Sections 6.l (a) Oceano shall remain liable for its own real and personal property damage (including, without limitation, autos, equipment, and apparatus), since it is retaining ownership of, insurable interests therein, and insurance on its real and personal property. (c) Except for any duties either Party owes to the other pursuant to the provisions of this Agreement, nothing in this Agreement shall be construed to waive any legal protections or immunities available to the Parties under state or federal law.
(d) Accordingly, the Parties hereby expressly agree to waive the pro rata risk allocation contained in California Government Code Section 895.6.

6.2 Mutual Indemnification Obligations Survive Termination. As to activities· occurring or being carried out in performance of this Agreement and during the term of this Agreement, the obligations created by Section 6.1 shall survive termination of this Agreement.

6.3 Immunity Preservation. Nothing in this Agreement shall be read as 65501.00100\41328557.11
6 waiving or limiting any defense to claims of liability otherwise available to fire personnel, and/or public employees, such as the defense of qualified immunity. Nothing in this Agreement shall be read as intending to create or creating a higher duty of care on the part of either Oceano or FCFA, or their officers, than would otherwise exist under existing law and the involved Party's own policies, practices, and procedures.

6.4 Public Liability and Property Insurance.
(a) Each Party shall maintain in effect, at its own cost and expense, the following insurance coverage provided either through a bona fide program of self-insurance, commercial insurance policies, or any combination thereof:
i. Commercial general liability or public liability with minimum limits of $1,000,000.00 per occurrence.
ii. Auto liability including owned, leased, non-owned,
and hired automobiles, with a combined single limit of not less than $1,000,000.00 per occurrence.
iii. If a Party employs others in the performance of this Agreement, that Party shall maintain Workers' Compensation in accordance with California Labor Code section 3700 with a minimum of $1,000,000 per occurrence for employer's liability, for the duration of time that such workers are employed.
(b) All insurance required by this Agreement shall:
i. Be placed (1) with companies admitted to transact
insurance business in the State of California and with a current A.M. Best rating of no less than A:VI or with carriers with a current A.M. Best rating of no less than A:VII; or (2) disclosed self­ insurance with limits acceptable to the other Party. ii. Provide that each Party's insurance is primary and
non-contributing insurance to any insurance or self-insurance maintained by the other Party and that the insurance of the other Party shall not be called upon to contribute to a loss covered by a Party's insurance.
(c) Each Party shall file certificates of insurance with the other Party evidencing that the required insurance is in effect within thirty (30) days after the effective date of this Agreement.

6.5 Workers Compensation.
65501.00100\41328557.11
7 (a) FCFA shall provide Oceano an endorsement that its Workers Compensation insurer waives the right of subrogation against Oceano, its officers, officials, employees, and volunteers for all claims on or after the effective start date of this Agreement during the tenure of said Agreement.

ARTICLE VII

MISCELLANEOUS

7.1 Amendments to Agreement. No part of this Agreement shall be altered or amended except by written amendment and mutual consent of both Parties.

7.2 Assignment. The rights and obligations of the Parties under this Agreement are not assignable and shall not be delegated without the prior written approval of the other Party.

7.3 Dispute Resolution. The Parties recognize that this Agreement cannot represent a complete expression of all issues which may arise during the performance of the Agreement. Accordingly, FCFA and Oceano agree to meet and confer in good faith over any issue not expressly described herein. (a) It is the Parties' intention to avoid the cost of litigation and to resolve any issues that may arise amicably if possible. To that end, the Parties agree through the City Managers of Arroyo Grande and Grover Beach and the Oceano General Manager to meet within ten (10) business days of a request made by the other party in writing to discuss any issues and attempt to resolve the dispute. If the dispute is not resolved after that meeting, the Parties agree to participate in a mediation to resolve the dispute within 30 calendar days of the meeting or as soon thereafter as possible. The mediator will be chosen by mutual agreement of the Parties. The costs of mediation will be borne by the Parties equally. Any agreement reached during the mediation will be binding on the Parties during the remaining term of the Agreement. No party may initiate litigation prior to the conclusion of mediation. In any action brought under this Agreement, the prevailing Party shall be entitled to recover its actual costs and reasonable attorney fees in an amount not to exceed ten thousand dollars ($10,000.00).

7.4 Exhibits. The following Exhibits are attached hereto and incorporated as if fully set forth herein:

Exhibit “A”: Oceano Jurisdiction Map
Exhibit “B”: Scope of Fire and Emergency Medical Services 65501.00100\41328557.11
8 Exhibit “C”: Third Amended Joint Powers Agreement of the FCFA

7.5 Notices. All notices required or permitted hereunder shall be deemed sufficiently given if delivered by hand, electronic mail, or by United States mail, postage prepaid, addressed to the Parties at the addresses set forth below or to such other address as may, from time to time, be designated in writing.

To Oceano:

General Manager
1655 Front St.

Oceano, CA. 93445
To FCFA:

Fire Chief
140 Traffic Way
Arroyo Grande, CA 93420

7.6 Governing Law. Agreement shall be governed by the laws of the state of California with venue being the Superior Court of the County of San Luis Obispo.

7.7 Third Party Beneficiary. The Agreement is only for the benefit of the Parties to the Agreement and shall not be construed or deemed to operate as an agreement for the benefit of any third party or parties and no third parties shall have any right of action or obtain any right of benefits or position of any kind for any reason whatsoever.

7.8 Default and Delinquency. If Oceano defaults in its obligation to pay or advance any amounts due pursuant to this Agreement after such amounts have become delinquent, Oceano shall be liable to the FCFA for interest on any unpaid amount at the rate of 10%, or the maximum rate allowed by law if it is less than 10%, until the overdue invoice amount is paid in full.

7.9 Waiver. The waiver at any time by any Party of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or matter.

7.10 Remedies Not Exclusive. The remedies provided in this Agreement are cumulative and not exclusive, and are in addition to any other remedies that may be provided by law or equity. The exercise by any Party of any remedy under this Agreement shall be without prejudice to the enforcement of any other remedy.

7.11 Severability. The invalidity, illegality or unenforceability of any 65501.00100\41328557.11
9 provision of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

7.12 Counterparts. This Agreement may be executed by the Member Agencies in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

IN WITNESS WHEREOF, the Parties execute this agreement hereto on the day and the year first written above.
65501.00100\41328557.11
10 FIRE CITIES FIRE AUTHORITY
By
Authority Chair
Dated
ATTEST:

By
Authority Clerk
APPROVED AS TO FORM:

Authority Attorney

OCEANO COMMUNITY SERVICES DISTRICT
By
President
Dated
ATTEST:

By
District Clerk
APPROVED AS TO FORM:

District Counsel
65501.00100\41328557.11
11 EXHIBIT “A”

OCEANO JURISDICTION MAP
65501.00100
\41328557.11
12 65501.00100\41328557.11
13 EXHIBIT “B”

SCOPE OF SERVICE
Scope of Services
FCFA shall provide the following services while this Agreement is in effect:

1. Administration. Provide administrative responsibility and support for all fire, emergency and non-emergency services in the Oceano Community Services District (“Oceano”).

Administration of fire services shall include the following:
a. Adequate supervision and staffing,
b. Program planning;
c. Delivery and documentation of all federal and state-mandated firefighter training;
d. Coordination of procurement of all operational supplies, services, and equipment;
e. Representation at Oceano Board meetings as deemed necessary by the Oceano General Manager and agreed to by the FCFA Fire Chief; f. Transparency with Oceano in management decisions affecting fire service delivery.

2. Incident Response. Delivery of all fire protection and emergency services within the jurisdictional limits of Oceano Community Services District, including responding to calls for fire suppression, emergency medical response (Basic Life Support services), rescue services, hazardous materials, and all other emergency and non-emergency calls for service as received and dispatched to the FCFA. A Chief Officer, or acting Chief Fire Officer, shall respond to all major incidents as determined by the Fire Chief.

3. Fire Safety Inspections/Enforcement. Enforce code provisions related to fire services, including but not limited to weed abatement and fireworks, and hazardous material releases. Review of all development and building plans to ensure compliance with applicable fire and life safety codes and regulations, as well as inspection of fire protection and fire alarm systems for compliance with applicable codes and standards.

To the maximum extent feasible, inspection shall be performed during standard duty hours.

4. Investigations. Investigate all fires to establish origin and cause and coordinate with the Oceano Community Services District on criminal investigations and prosecutions resulting therefrom. Provide fire investigation reports. 65501.00100\41328557.11
14 5. Training. Maintain a continuous training program that corresponds to federal, state and local mandates, as well as evolving industry best practices and developments in emerging fire suppression and fire prevention techniques. 6, Emergency Management. FCFA, through its Fire Chief, or his/her designee, shall be responsible for the coordination and communication with the County of San Luis Obispo Office of Emergency Services . Pursuant to existing agreements, FCFA will coordinate with other agencies regarding mutual aid services to Oceano Community Services District. FCFA will also respond to requests for mutual aid or assistance-by-hire by other agencies pursuant to the California Statewide Mutual Aid Agreement or the California Fire Assistance Agreement.
65501.00100\41328557.11
15 EXHIBIT “C”

THIRD AMENDED JOINT POWERS AGREEMENT OF THE FCFA
Attachment 2 - 2

65501.00100\41300388.5
OCEANO COMMUNITY SERVICE DISTRICT’S ONGOING CAL PERS

LIABILITIES AND RESPONSIBILITIES FOLLOWING WITHDRAWAL FROM THE

FIVE CITIES FIRE AUTHORITY JOINT EXERCISE OF POWERS AGREEMENT This AGREEMENT (“Agreement”) is dated this __ day of ____, 2023, for reference purposes only, and is entered into by and between the Five Cities Fire Authority (“FCFA”), and the Oceano Community Services District (“Oceano”), which are hereinafter referred to as “Party” or collectively as “Parties.” This Agreement memorializes Oceano’s ongoing share of unfunded CalPERS liabilities, including but not limited pension/CalPERS, accrued fringe benefits, and other liabilities incurred from Oceano’s participation in the Five Cities Fire Authority, prior to June 30, 2023 (“Liabilities”).

RECITALS
A. On June 7, 2010, the cities of Arroyo Grande and Grover Beach, and Oceano, desirous of improving the quality and level of fire suppression and emergency medical service delivery within their communities through the sharing of resources and expertise, entered into a Joint Powers Authority Agreement (the “JPA”) and have operated as Five Cities Fire Authority pursuant to the terms and conditions in that agreement since that time as JPA member agencies.

That JPA, and its First, Second and Third Amendments, are incorporated herein and attached as Exhibit “A” (collectively, “JPA and its Amendments”).

B. The obligations contained within Exhibit “A” remain binding on each of the Parties, including Oceano’s Liabilities, incurred over the time period during which each Party serves or has served as a JPA member agency.

C. Under that JPA and its Amendments, the Parties have shared fire services, allowing for cost savings and operational efficiencies in providing fire services to the public.

D. Oceano has served as a member agency of the JPA since the inception of the FCFA on June 7, 2010, but is exiting the JPA on June 30, 2023 due to mutually adopted provisions by each Party under the JPA.

E. Specifically, and pursuant to Section 4 of the Third Amendment to the JPA, Oceano was required to place a special sales tax measure on the 2022 primary ballot, that would enable Oceano to be able to fund its proportionate share of costs owed to the FCFA.

F. As that 2022 Oceano ballot measure failed, and Oceano is unable to fund its proportionate share of its costs owed to the FCFA, by the terms of the Third Amendment to the JPA, incorporated herein as Exhibit “A,” the JPA subsequently entered into a “Wind Down Period,” with certain ongoing obligations and Liabilities owed by Oceano before an automatic withdrawal from the FCFA on June 30, 2023.

G. The Parties have now determined this Agreement is necessary to set out the continued FCFA obligations owed by Oceano under the “Wind Down Period” incorporated by Exhibit “A,” and to set forth a process by which those Oceano Liabilities will be paid in full.

Attachment 3 - 1
65501.00100\41300388.5
H. The Parties agree that all proportionate Oceano Liabilities, as well as all debts and obligations owed by Oceano to the FCFA, shall remain in effect until paid in full.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated the Parties agree as follows:

1. Recitals. The recitals above are true and correct and are hereby incorporated into the terms of this Agreement as though fully set forth herein.

2. Term. The term of this Agreement shall commence as of the date the governing boards of all Parties have fully executed this Agreement and shall continue until terminated automatically upon the date Oceano has paid all proportionate Liabilities, as well as all debts and obligations owed by Oceano to the FCFA, as set herein.

3. Oceano’s Financial Obligations.

3.1 Nothing within this Agreement modifies Oceano’s obligations under the Five Cities Fire Authority Joint Powers Authority Agreement, as amended, in particular the Third Amendment included as Exhibit “A.”

3.2 Oceano remains subject to all “Wind Down Period” obligations set forth within the JPA and its Amendments, incorporated as Exhibit “A.” Specifically, under Section 5 of the Third Amendment to the JPA, Oceano’s withdrawal from the FCFA shall not absolve Oceano from any Liabilities arising out of Oceano’s participation in the JPA since the time the FCFA was created on June 7, 2010 through the date of Oceano’s withdrawal from the JPA on June 30, 2023 (“Effective Date Range for Liabilities”).

3.3 Oceano warrants and agrees to pay any and all Liabilities arising out of its participation in the JPA over the Effective Date Range for Liabilities. Oceano warrants and agrees to the FCFA’s use of the City of Arroyo Grande’s CalPERS contract for employees of the FCFA, effective since the inception of the JPA.

3.4 Oceano’s share of Liabilities shall bear the same proportionate relationship to the whole as its annual contribution for the operation of the FCFA as set forth in Exhibit “A” over the Effective Date Range for Liabilities. Oceano’s share of such Unfunded Accrued Pension Liability (“UAPL”) expenses shall be determined according to the same formula used by the FCFA to allocate such costs during the final year of the withdrawing Oceano’s membership. (a) Oceano’s share of Liabilities shall be reduced by (i) Oceano’s proportionate share of the FCFA fund balance as of June 30, 2023, and (ii) Oceano’s proportionate ownership share of FCFA physical assets as of June 30, 2023, which equals Two Hundred Seventy-Eight Thousand One Hundred Nine Dollars ($278,109). The amount of Oceano’s proportionate share of the FCFA fund balance as of June 30, 2023, will be determined by the FCFA Treasurer based on the audited financial report for Fiscal Year 2022-23.

3.5 Actuary Report. The Parties shall agree and rely on an Actuary Report utilized by the FCFA to determine Oceano’s share of Liabilities. Specifically, the Parties agree to rely on any Actuary Report commissioned by the FCFA that methodically determines all CalPERS- 65501.00100\41300388.5
designated liabilities, commissioned in response to Arroyo Grande’s CalPERS contract, to determine the Liabilities owed by Oceano to FCFA. Attached as Exhibit “B” is Foster & Foster’s Five Cities Fire Authority CalPERS Miscellaneous and Safety Plans Unfunded Liability Analysis (“Preliminary Actuary Report”) reflecting the Parties share of Liabilities for FCFA through June 30, 2021. That Preliminary Actuary Report is presented as an example. At that time FCFA completes an Actuary Report that reflects Oceano’s proportionate share of Liabilities over the Effective Date Range for Liabilities, through June 30, 2023 (“Final Actuary Report”), that Final Actuary Report will be attached, replacing the Preliminary Actuary Report, and incorporated herein as a revised Exhibit “B.” Any Final Actuary Report shall be used to determine Oceano’s owed amount over the Effective Date Range for Liabilities and shall be binding on the Parties for purposes of Oceano’s required payment of Liabilities under Section

3.6. The Final Actuary Report may be revised from time to time based on any updated transmittal of FCFA’s CalPERS liabilities over the Effective Date Range for Liabilities. At the time a Final Actuary Report is revised as commissioned by FCFA, those revisions shall automatically be incorporated by reference as Exhibit “B.” (a) The Parties consent and agree with the formula, calculations used and Oceano’s agreed upon shares attributed to services rendered over the Effective Date Range for Liabilities, as set forth in the Actuary Report that shall be attached and incorporated herein as Exhibit “B,” and will be similar in analysis to the Preliminary Actuary Report. (b) The Parties consent and agree that Oceano’s Liabilities shall be calculated using the same assumptions used by CalPERS to calculate UAPL for contracting agencies with active contracts unless Oceano elects to pay its share of liabilities on a lump sum basis, in which case, the assumption used shall be the assumptions used by CalPERS to calculate UAPL for contracting agencies on a terminated basis.

3.6 Payment Options. Oceano’s Liabilities are due and payable to the FCFA based on one of the following two payment options, which ensures full recovery for any and all proportionate Oceano Liabilities incurred prior to June 30, 2023. Failure to meet the obligations set forth in this Section 3.5 herein constitutes a default by Oceano. (a) Lump Sum. Upon execution by the Parties of this Agreement, Oceano may issue a lump sum invoice payment for the Total Cost of Liabilities owed to the FCFA, as set forth under Section 3.3 above and subject to any Final Actuary Report incorporated as Exhibit “B,” within 180 days of Parties’ receipt of the Actuary Report that will be accepted by the Parties by the terms described herein.
(b) Annual Payment. Upon execution by the Parties of this Agreement, Oceano may initiate an annual payment for the Total Cost of Liabilities, due and payable via invoice within sixty (60) days of receipt of a FCFA invoice evidencing applicable CalPERS liabilities for any portion of the Effective Date Range of Liabilities, based on the applicable Final Actuary Report incorporated as Exhibit “B. Should Oceano initiate annual payments, Oceano reserves the right to make a future lump sum payment for the remaining Total Cost of Liabilities owed to the FCFA based on an Actuary Report agreeable to all Parties, due and payable via invoice within sixty (60) days of receipt of a FCFA invoice. 65501.00100\41300388.5

3.7 Default and Delinquency. If Oceano defaults in its obligation to pay or advance any amounts due pursuant to this Agreement after such amounts have become delinquent, Oceano shall be liable to the FCFA for interest on any unpaid amount at the rate of 10% per annum, or the maximum rate allowed by law if it is less than 10% per annum, until the overdue invoice amount is paid in full.

4. Indemnification. The Parties shall indemnify, defend and hold harmless the other Parties’ members, officers, directors, employees and agents from and against any and all liability, loss, damages, expenses, costs (including, without limitations, costs and fees of litigation or arbitration) of every nature, arising out of any act or omission related to this Agreement.

5. Conflict Resolution. The Parties agree that any and all disputes, claims or controversies between the Parties arising out of or relating to performance of this Agreement, shall be resolved pursuant to the conflict resolution provisions as follows:

5.1 The Parties shall first meet and attempt in good faith to negotiate and resolve any dispute arising out of or relating to this Agreement, subject to subsequent approval of any such resolution by the respective governing boards of the Parties.

5.2 If the matter cannot be resolved, then the Parties agree that the matter shall be submitted to mediation within a reasonable period of time after receipt of a written request from one Party requesting such mediation. The Parties shall cooperate with one another in selecting a mediator and in scheduling the mediation proceedings. Should the Parties be unable to agree upon a mediator, they shall agree upon a mediation service and shall have that service select a mediator for them. The Parties agree that they shall participate in the mediation in good faith and that they will share equally in the costs of mediation. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the Parties, their agents, employees, experts and attorneys, and by the mediator or any employees of the mediator, are confidential, privileged and inadmissible for any purpose, including impeachment, in any litigation or other proceeding involving the Parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

5.3 If the matter is not resolved by negotiation, then the Parties may submit the matter to binding or non-binding arbitration, but only if the Parties agree to submit the particular controversy to arbitration. No Party shall have a right to submit any controversy to arbitration without the other Parties’ consent.

6. General Provisions.

6.1 Construction and Interpretation. It is agreed and acknowledged by the Parties that this Agreement has been arrived at through negotiation, and that each Party has had a full and fair opportunity to revise the terms of this Agreement. Consequently, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in construing or interpreting this Agreement.
65501.00100\41300388.5

6.2 Waiver. The waiver at any time by any Party of its rights with respect to a default or other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or matter.

6.3 Remedies Not Exclusive. The remedies provided in this Agreement are cumulative and not exclusive, and are in addition to any other remedies that may be provided by law or equity. The exercise by any Party of any remedy under this Agreement shall be without prejudice to the enforcement of any other remedy.

6.4 Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

6.5 Successors and Assigns. Except as otherwise provided by law, the rights and duties of the Parties under this Agreement shall not be assigned or delegated without the prior written consent of the other Parties. Any attempt to assign or delegate such rights or duties in contravention of this Agreement shall be null and void.

6.6 No Third Member Agency Beneficiaries. This Agreement shall not be construed to create any third party beneficiaries. This Agreement is for the sole benefit of the Parties, and their permitted successors, transferees and assignees, and no other person or entity shall be entitled to rely upon or receive any benefit from this Agreement or any of its terms.

6.7 Amendment. This Agreement may be modified or amended only by a subsequent written agreement approved by the governing board of each Party, and executed by each Party pursuant to the terms and conditions of this Agreement.

6.8 Governing Law and Venue. Except as otherwise required by law, this Agreement shall be interpreted, governed by, and construed under the laws of the State of California. The County of San Luis Obispo shall be the venue for any litigation concerning the enforcement or construction of this Agreement.

6.9 Attorney Fees. In the event any legal action is brought to enforce or construe this Agreement, the prevailing party shall be entitled to an award of reasonable attorney fees, expert witness and consulting fees, litigation costs and costs of suit.

6.10 Notice. Any notice, demand, invoice or other communication required or permitted to be given under this Agreement shall be in writing and either served personally or sent by prepaid, first class U.S. mail to the Agency Clerk and Agency Attorney of each Party.

Any notice or other communication served by personal delivery shall be deemed received when actually delivered. Any notice or other communication shall be deemed as received three days after deposit in United States mail, postage prepaid, return receipt requested.

6.11 Counterparts. This Agreement may be executed by the Member Agencies in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 65501.00100\41300388.5
Exhibits:

1. Exhibit “A” – Five Cities Fire Authorities Joint Powers Authority Agreement and Amendments

2. Exhibit “B” – Actuary Report of Five Cities Fire Authority Unfunded Accrued Pension Liability
[signature page follows]
65501.00100\41300388.5
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date last executed as set forth below.

FIRE CITIES FIRE AUTHORITY
By
Authority Chair
Dated
ATTEST:

By
Authority Clerk
APPROVED AS TO FORM:

Authority Attorney
City Attorney
65501.00100\41300388.5

OCEANO COMMUNITY SERVICES DISTRICT
By
President
Dated
ATTEST:

By
District Clerk
APPROVED AS TO FORM:

District Counsel
65501.00100\41300388.5
Exhibit “A” – Five Cities Fire Authorities Joint Powers Authority Agreement and Amendments
65501.00100\41300388.5
Exhibit “B” – Actuary Report of Five Cities Fire Authority Unfunded Accrued Pension Liability
Attachment 3 - 2

Five Cities Fire Authority
CalPERS Miscellaneous and Safety Plans
Unfunded Liability Analysis
Fiscal Years 2021/22 and 2022/23
Draft for Discussion
Foster & Foster, Inc.

January 5, 2023
Attachment 3 - 3

411 Borel Avenue, Suite 620 San Mateo, CA 94402 ꞏ (650) 377-1600 ꞏ www.foster-foster.com

ACTUARIAL CERTIFICATION
This report presents our analysis of the actuarial liability for benefits provided to employees of Five Cities Fire Authority’s (“FCFA”) under CalPERS Miscellaneous and Safety Plans (“Plans”) maintained by the City of Arroyo Grande (“City”).

The purpose of this analysis is to determine the Unfunded Actuarial Accrued Liability as of June 30, 2021 that is attributable to FCFA, and the portion attributable to the City. This report contains actuarial calculations for the purpose of assisting the Five Cities Fire Authority management.

The calculations are not appropriate for any other purposes.

Future calculations may differ significantly if the Plans’ experience differs from our assumptions or if there are changes in plan design, actuarial methods or actuarial assumptions. The project scope did not include an analysis of this potential variation.

The calculations are based on census data and plan provisions provided by the City of Arroyo Grande and CalPERS June 30, 2013 through 2021 actuarial valuation reports and on our understanding of the benefit provisions, actuarial reports and benefit summaries prepared by CalPERS, and on the methodology detailed in this report. Alternative methods could produce different results. The project scope did not include alternate analyses.

As a member of the American Academy of Actuaries meeting the Academy Qualification Standards, I certify the actuarial results and opinions herein.

Respectfully submitted,
Mary Elizabeth Redding, FSA, MAAA, EA
Senior Consulting Actuary
Foster & Foster, Inc.

January 5, 2023

TABLE OF CONTENTS

SECTION PAGE

1. Summary of Results 3

2. Purpose and Methodology 4

3. Fire Safety Classic Tier UAAL Analysis 7

4. Miscellaneous Classic Tier 1 UAAL Analysis 8

5. Safety Fire PEPRA UAAL Analysis 9

6. Plan Termination Analysis 10

7. Employer Contribution Analysis 12

8. Data Summary 15

9. Actuarial Assumptions 16

10. Summary of CalPERS Benefit 17

11. Detail of Fire Safety Tier 1 UAAL Allocation 18

12. Definitions 21
SECTION 1

SUMMARY OF RESULTS
CalPERS Unfunded Liability Analysis Page 3
Summary
Our calculations have determined that the CalPERS Unfunded Actuarial Liability attributable to FCFA employees is $176,223 at June 30, 2021 on the ongoing basis used by CalPERS to calculate required contributions.

If the Plans had been terminated June 30, 2021 or if FCFA had withdrawn from the CalPERS system on that date, the estimated unfunded termination liability owed to CalPERS for FCFA members would have been approximately $8.0 million.

Our calculations also determined that since FCFA’s inception through June 30, 2022, without adjustment for interest, FCFA has paid $982,169, to CalPERS for benefits attributable to the City of Arroyo Grande, and the City has paid $94,768 for benefits attributable to FCFA service. The net of these two amounts, without considering interest, is $887,401.

FCFA Unfunded CalPERS Liability at June 30, 2021
The report details the calculation of FCFA’s CalPERS unfunded actuarial accrued liability as of June 30, 2021 and presents the calculation methodologies used. Following is a summary of our calculation results.

FCFA - CalPERS Unfunded Actuarial Liability
June 30, 2021
Ongoing Basis, 6.8% Discount Rate
Fire Safety
Classic Tier
Fire Safety
PEPRA
Miscellaneous
Classic Tier 1 Total
 Actuarial Accrued
Liability (AAL) $7,305,908 $ 602,691 $ 310,095 $ 8,218,694  Allocated Assets 7,161,156 645,706 235,609 8,042,471
 Unfunded AAL
(UAAL) $ 144,752 $ (43,015) $ 74,486 $ 176,223
Sample Plan Termination Basis, 2.25% Discount Rate
 Unfunded AAL
(UAAL) $ 7,268,114 $ 397,800 $ 323,414 $ 7,989,328
.

SECTION 2

PURPOSE AND METHODOLOGY
CalPERS Unfunded Liability Analysis Page 4
The purpose of this study is to (1) determine the unfunded actuarial accrued liability (“UAAL”) for the CalPERS pension benefits for current and past employees and retirees of the Five Cities Fire Authority (“FCFA”) and (2) determine the amount of any CalPERS contributions paid by the City or FCFA that should have been paid by the other party.

Since the CalPERS Fire Safety Classic and the Miscellaneous Classic tiers have members with service for the City of Arroyo Grande (“City”) and FCFA, this study involves allocating the UAAL of those tiers between the City and FCFA Background
FCFA was formed in July 2010 as a Joint Powers Authority between the Cities of Arroyo Grande and Grover Beach, and the Oceano Community Services District (“Oceano CSD”). FCFA became the employer for fire safety personnel previously employed by its member agencies. The City of Grover Beach and Oceano CSD retained the CalPERS liabilities for past service of their employees. No new CalPERS plan was created for FCFA and instead all FCFA employees have been covered under the City of Arroyo Grande’s CalPERS pension plans. As a result, the City’s CalPERS plans include liabilities for employees and retirees of the City and of FCFA. We understand that since it was formed, FCFA has paid the full costs of the City’s Fire Safety CalPERS plans and the City has paid the full costs of the Miscellaneous plans.

Actuarial Accrued Liability (AAL)
The City’s Fire Safety Classic tier (3.0%@55) has members with both City and FCFA service. Members of the PEPRA Fire Safety tier (2.7%@57) have entirely FCFA service.

We calculated the actuarial accrued liability (AAL) for each person in the Fire Safety Classic tier, mirroring CalPERS actuarial valuation methods and assumptions. Our valuation came within 2% of CalPERS’ published results. We allocated the difference for each status group among members of that status group based on our calculated AAL.

Because CalPERS pension benefits are earned for each year of service, we next allocated each member’s AAL between the City and FCFA based on each member’s past service.

The AAL was then totaled for the City and FCFA.

Since inception of FCFA, there has been one non-Safety FCFA position filled by employees who are members of the City’s Classic Miscellaneous plan. We estimated the AAL for the current employee based on an actuarial valuation of their benefits following CalPERS actuarial methods and assumptions. We did not replicate the CalPERS valuation for the entire tier, as we did for the Safety group.

SECTION 2

PURPOSE AND METHODOLOGY
CalPERS Unfunded Liability Analysis Page 5
Unfunded Actuarial Accrued Liability (UAAL) and Assets
Because the plans are in CalPERS risk pool, the plans’ normal cost is not equal to the sum of the individually calculated normal costs; instead, it is calculated by CalPERS on a pooled basis and is the same for all plans in the risk pool with the same benefit formula.

The UAAL is not calculated directly for plans in the CalPERS risk pool, and plan assets are also not recorded and maintained separately for each risk pool plan. Instead, beginning with the June 30, 2013 actuarial valuations, CalPERS has allocated actuarial and investment gains and losses to each plan to determine the each plans’ UAAL, and then assigned assets to each plan as the difference between the AAL and the UAAL. We followed CalPERS procedures, detailed in Section 11 of this report, to allocate the Fire Safety Classic UAAL between the City and FCFA.

AAL Allocation Methodology – Fire Safety Classic Tier
To determine the AAL for the City and FCFA at each year, we began with CalPERS 6/30/2011 actuarial valuations. We projected the AAL forward as follows:
 The 6/30/2011 AAL was allocated entirely to the City. It was projected forward taking into account interest, benefits paid and the impact of actuarial assumption changes.
 FCFA had no initial AAL. Its AAL was projected forward from 6/30/2011 taking into account interest, benefits paid, the impact of actuarial assumption changes plus the entire plan normal cost
 Benefit payments in each year were determined by beginning with retirees as of June 30, 2019 and projecting their benefits backward and forward, taking into account retirement dates and actual cost of living adjustments, and then pro-rating the benefits between the City and FCFA based on service at retirement.  Differences between the projected total AAL of City and FCFA and CalPERS published AAL in each year were allocated between City and FCFA using our professional judgement, in general, reflecting the reduction in the number of initial retirees in the first few years, and the inherent difference between normal costs calculated on a pooled basis and the plan members’ actual AAL.

Based on census data as of June 30, 2019, 2020, and 2021 and CalPERS actuarial methods and assumptions, we performed actuarial valuations as of June 30, 2019, 2020, and 2021 and allocated the resulting AAL between City and FCFA based on each members’ service to each valuation date.

SECTION 2

PURPOSE AND METHODOLOGY
CalPERS Unfunded Liability Analysis Page 6
UAAL Allocation Methodology – Fire Safety Classic Tier
Beginning from June 30, 2013, the Fire Safety Classic Tier UAAL at each valuation date was allocated between the City and FCFA following CalPERS methodology detailed in Section 11, based on the AAL for each group at each valuation date and on the outstanding amounts of previously allocated UAAL. In our opinion, this produces the same results as would have occurred if the plan had been split between groups at inception.

UAAL Allocation Methodology – Fire Safety PEPRA Tier
Since all members of this plan are FCFA employees, no allocation is needed.

UAAL Allocation Methodology – Miscellaneous Classic Tier 1 Because our calculated AAL for the current FCFA employee in the Miscellaneous Classic Tier 1 plan is less than 1% of the total plan AAL, we believe that projection of historical AALs and then following CalPERS risk pool UAAL allocation methodology would likely not produce accurate results. Instead, we assumed FCFA’s portion of the plan was the same percentage funded as the total plan.

Estimated Plan Termination UAAL
The actuarial liabilities and contributions calculated in CalPERS funding valuations are on an ongoing plan basis. This means that employees will continue earning benefits in the future, new agency employees will become CalPERS members, and CalPERS can adjust required future contributions as needed to fund those benefits.

When a public agency leaves CalPERS (“terminates”), CalPERS agrees to pay all accrued benefits for all plan members, whether currently active, terminated, or retired.

CalPERS also agrees that following termination, the agency will not be obligated to make any future payments to CalPERS. Therefore, CalPERS changes the basis used to calculate the actuarial liabilities to ensure that it has sufficient funds to pay benefits under any circumstances. In particular, liabilities are increased to allow for future mortality improvement and are calculated using a discount rate estimated as the yield on 20-year Treasury bonds.

To illustrate the UAAL on a plan termination basis, we have estimated the liability using the higher of the two termination discount rates in CalPERS June 30, 2021 actuarial valuation report, 2.25%, as well as a recent 20 year Treasury bond yield, 4.38% as of October 28, 2022.1
1 https://home.treasury.gov/resource-center/data-chart-center/interestrates/TextView?type=daily_treasury_long_term_rate&field_tdr_date_value_month=202210 SECTION 3

FIRE SAFETY CLASSIC TIER UAAL ANALYSIS
CalPERS Unfunded Liability Analysis Page 7
As described above, we performed an actuarial valuation as of June 30, 2021 to determine the actuarial accrued liability (AAL) attributable to the City and to FCFA. The AAL was allocated to the City or FCFA based on the member’s period of service for each entity.

The allocated assets at June 30, 2021 were determined by following CalPERS current risk pool methodology beginning with its inception as of June 30, 2013. Details of the calculation are in section 11.

A breakdown of our actuarial valuation results for the Fire Safety Classic tier by status as of June 30, 2021 is as follows:

Fire Safety Classic Tier UAAL
June 30, 2021
City FCFA Total
AAL:
 Active employees $ 679,691 10% $ 6,097,006 90% $ 6,776,697  Inactives 583,427 51% 550,477 49% 1,133,904
 Retirees 2,305,272 78% 658,425 22% 2,963,698
 Total 3,568,391 33% 7,305,908 67% 10,874,299
 Allocated assets 2,720,564 7,161,156 9,881,720
 UAAL 847,827 144,752 992,579
We note that the FCFA portion of the plan has a higher funded ratio (98%) than the City’s portion (76%). This result is expected. The FCFA portion of the plan began with all employees treated as new hires on July 1, 2010, and all past service and retiree benefit liabilities, as well as the unfunded liability remaining from asset losses incurred during the 2008-2009 Great Recession, remaining with the City. Given this “clean slate” beginning, the FCFA plan was able to maintain a funded status at close to 100% by paying each year’s normal costs. This result is similar to most CalPERS PEPRA plans, which cover only new employees hired in 2013 or later.

SECTION 4
MISCELLANEOUS CLASSIC TIER 1 UAAL ANALYSIS
CalPERS Unfunded Liability Analysis Page 8
The following table shows the allocation of the UAAL for Miscellaneous Classic Tier 1 at June 30, 2021. The actuarial accrued liability for the current Miscellaneous FCFA employee was calculated from our actuarial valuation as of June 30, 2021. We have ignored any possible AAL for previous Miscellaneous employees who worked only a short time for FCFA.

Miscellaneous Classic Tier 1 UAAL
June 30, 2021
FCFA
Employee City Total
 Actuarial Accrued Liability $ 310,095* $ 43,948,774 $ 44,258,869  Percent of total 0.70% 99.30% 100.00%
 Assets allocated in proportion to AAL 235,609 33,392,126 33,627,735  UAAL allocated in proportion to AAL 74,486 10,556,648 10,631,134  Funded status 76.0% 76.0% 76.0%
* Calculated by Foster & Foster
SECTION 5

FIRE SAFETY PEPRA UAAL ANALYSIS
CalPERS Unfunded Liability Analysis Page 9
Since all members of the Fire Safety PEPRA plan are and have always been FCFA employees, no allocation is required and the entire actuarial liability is allocated to FCFA.

Fire Safety PEPRA UAAL
June 30, 2021
Total
 Actuarial Accrued Liability $ 602,691
 Assets 645,706
 UAAL/(Overfunded AAL) (43,015)
 Funded status 107.1%
SECTION 6

PLAN TERMINATION ANALYSIS
CalPERS Unfunded Liability Analysis Page 10
The following tables present details of our estimation of FCFA’s liability on a plan termination basis. This represents the actuarial liability on the basis CalPERS would use if an agency were leaving CalPERS. In that situation, CalPERS would retain the obligation to make all future payments of benefits accrued to date, and CalPERS would invest the plan assets very conservatively as the terminating agency would have no obligation to make any future payments to CalPERS.

The June 30, 2021 termination basis shown below is the lower of the two liability options (based on the higher of the two discount rates) presented as an estimate in CalPERS valuation report. It includes a 5% liability load for contingencies.

We understand that interest rates in general have risen since June 30, 2021. 4.38% is a recent 20 year Treasury bond rate: it is an estimate of the rate that could actually be used for termination. However, the AAL is as of June 30, 2021 and has not been increased for benefit accruals or other changes since then.

To estimate FCFA’s termination liability for each plan, we allocated the published termination liability for the entire plan on the Ongoing Plan Basis AALs, allocated between FCFA and the City as described earlier in this report. This is a reasonable estimate for illustrative purposes. However, an actual calculation would likely show a higher percentage increase between the ongoing and termination basis for the FCFA portion of the plan than would the City’s portion of the plan. This is because much of the liabilities in the City’s portion of the plan are for retirees, and, due to their shorter life expectancies, their liabilities are less impacted by a change in the discount rate.

Fire Safety Classic Tier
Ongoing Plan
Basis at
June 30, 2021
Termination
Basis at
June 30, 2021
Estimated June 30, 2021
Termination Liability at
Recent Treasury Rate
 Discount Rate 6.8% 2.25% 4.38%
 Total AAL $10,874,299 $21,476,892 $16,513,480
 FCFA AAL 7,305,908 14,429,270 11,094,597
 FCFA Assets 7,161,156 7,161,156
 FCFA UAAL 144,752 7,268,114

SECTION 6

PLAN TERMINATION ANALYSIS
CalPERS Unfunded Liability Analysis Page 11
Miscellaneous Classic Tier 1
Ongoing Plan
Basis at June
30, 2021
Termination
Basis at
June 30, 2021
Estimated June 30, 2021
Termination Liability at
Recent Treasury Rate
 Discount Rate 6.8% 2.25% 4.38%
 Total AAL $44,258,869 $79,787,584 $64,191,410
 FCFA AAL 310,095 559,023 449,340
 FCFA Assets 235,609 235,609
 FCFA UAAL 74,486 323,414
Fire Safety PEPRA
Ongoing Plan
Basis at
June 30, 2021
Termination
Basis at
June 30, 2021
Estimated June 30, 2021
Termination Liability at
Recent Treasury Rate
 Discount Rate 6.8% 2.25% 4.38%
 FCFA AAL $ 602,691 $ 1,043,506 $ 837,146
 FCFA Assets 645,706 645,706
 FCFA UAAL (43,015) 397,800
Total FCFA Termination Basis Estimated Unfunded Liability Ongoing Plan
Basis at
June 30, 2021
Termination
Basis at
June 30, 2021
 Discount Rate 6.8% 2.25%
 Fire Safety Classic $ 144,752 $ 7,268,114
 Miscellaneous Classic 74,486 323,414
 Fire Safety PEPRA (43,015) 397,800
 Total Estimated UAAL 176,223 7,989,328
SECTION 7

EMPLOYER CONTRIBUTION ANALYSIS
CalPERS Unfunded Liability Analysis Page 12
Fire Safety Classic Tier Since FCFA’s inception, all of the active employees in this tier have been FCFA employees. Therefore, the normal cost should have been, and was, paid by FCFA. However, the City retained the liability for benefits earned for service with the City before FCFA’s inception and so both the City and FCFA should pay a portion of the UAAL payment. Below, we have allocated the UAAL payment for each payment year beginning with FY 2015-16 in accordance with the allocation of the outstanding UAAL bases for the year, as described previously and detailed in Section 11. The required UAAL payment in fiscal years 2010-11, 2011-12, and 2012-13 were based on the actuarial valuations as of June 30, 2008, 2009, and 2010 respectively. Since FCFA did not exist at those dates, the entire UAAL payment related to service for the City. We calculated the UAAL payment as the total CalPERS payment reported in FCFA’s financial statements minus the employer and employer-paid member normal costs for each year. The UAAL payment for FY 2013-14 was based on the June 30, 2011 actuarial valuation. Any FCFA UAAL would have been minimal and we have estimated it as $0. No amortization base schedule is available for fiscal year 2014-15, which is based on the June 30, 2012 actuarial valuation. That information was not provided by CalPERS prior to its methodology change at June 30, 2013. We have allocated the UAAL payment for FY 2014-15 in proportion to the allocated AAL on the associated June 30, 2012 valuation date. Schedule of Allocated Fire Safety Classic Tier UAAL Payments Valuation Date 6/30/08 6/30/09 6/30/10 6/30/11 6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18 6/30/19 Payment Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total City $57,451 $89,161 $145,532 $101,196 $113,017 $40,827 $46,730 $54,803 $65,912 $78,412 $88,209 $100,919 $982,169 FCFA 0 0 0 0 13,745 11,037 12,470 15,550 22,122 29,352 38,701 52,016 194,993 Total 57,451 89,161 145,532 101,196 126,762 51,864 59,200 70,353 88,034 107,764 126,910 152,935 1,177,162 In total, we calculate, without considering timing or interest, that between July 1, 2010 and June 30, 2022, FCFA has paid $982,169 in CalPERS Fire Safety Classic costs that should have been paid by the City.

SECTION 7

EMPLOYER CONTRIBUTION ANALYSIS
CalPERS Unfunded Liability Analysis Page 13
Miscellaneous Classic Tier 1 Since FCFA’s inception, FCFA has had one position filled sequentially by employees who are members of the City’s Miscellaneous Classic (Tier 1 and Tier 2) plans. The current employee has filled that position since FY2013-14. The normal cost for these employees should have been paid by FCFA. However, the City retained the liability for benefits earned for service with the City, so both the City and FCFA should pay a portion of the UAAL payment. Normal cost for each year is calculated as covered FCFA earnings multiplied by the Tier 1 or Tier 2 employer normal cost rate for the year. We have included the required employer normal cost only. If the City also pays the required member contribution for these Classic Miscellaneous employees, the normal cost shown below would approximately double. Rather than replicating CalPERS actuarial valuation for all Miscellaneous Classic members, we calculated the AAL for the current employee. For simplicity, since the current Miscellaneous employee has 0.70% of the Miscellaneous Classic Tier 1 AAL as of June 30, 2021, we allocated 0.70% of the 2023-242 fiscal year’s $1,072,588 UAAL payment to FCFA, or $7,508. For past years, we believe no significant Miscellaneous UAAL would have been present until the June 30, 2015 actuarial valuation, and no UAAL payment would have been due until the 2017-18 fiscal year. The payment would have been very small in the first year and grown over the 7 years to the $7,508 for FY 2023-24. Because these amounts are small, we have used a straight-line interpolation to estimate the UAAL payments for fiscal years 2017-18 through 2021-22. In total, we calculate, without considering timing or interest, that between July 1, 2010 and June 30, 2022, the City has paid $94,768 in CalPERS Miscellaneous costs that should have been paid by FCFA. 2 CalPERS’ June 30, 2021 actuarial valuation calculated the UAAL payments due in fiscal year 2023-24.

SECTION 7

EMPLOYER CONTRIBUTION ANALYSIS
CalPERS Unfunded Liability Analysis Page 14
Schedule of Allocated Miscellaneous Classic Tier 1 CalPERS Payments Valuation Date 6/30/08 6/30/09 6/30/10 6/30/11 6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18 6/30/19 Payment Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 TotalTier 1 Employer Normal Cost Rate 9.061% 9.319% 9.387% 9.665% 9.462% 9.671% 10.069% 10.110% 10.609% 11.432% 12.361% 12.200% Tier 2 Employer Normal Cost Rate N/A N/A 7.720% 8.052% N/A N/A N/A N/A N/A N/A N/A N/A FCFA Normal Cost $5,398 $5,982 $4,083 $2,829 $5,727 $6,396 $6,479 $6,724 $7,702 $8,317 $8,993 $10,042 $78,673 Allocated portion of UAAL payment - - - - 1,073 2,146 3,219 4,292 5,365 16,095 Total FCFA Miscellaneous Classic Tier 1 Cost 5,398 5,982 4,083 2,829 5,727 6,396 6,479 7,797 9,848 11,536 13,285 15,407 94,768 Summary – Net Difference In total for both the Miscellaneous and Safety plans, we calculate, without considering timing or interest, that between July 1, 2010 and June 30, 2022, FCFA has paid $887,401 in CalPERS Miscellaneous and Safety costs that should have been paid by the City.

SECTION 8

DATA SUMMARY
CalPERS Unfunded Liability Analysis Page 15
CalPERS Fire Safety Classic Tier Participants - June 30, 2021 All Service
with
City
Both City
and FCFA
Service
All Service
with
FCFA
Total
 Actives
 Count n/a 3 13 16
 Average Age n/a 51.3 46.4 49.3
 Average Service n/a 14.6 7.4 10.8
 Inactives
(Transferred or
separated)

 Count 4 2 6 12
 Average Age 49.1 41.1 45.2 45.8
 Retirees
 Counts 4 3 1 8
 Average Age 80.7 68.4 57.3 71.2
SECTION 9

ACTUARIAL ASSUMPTIONS
CalPERS Unfunded Liability Analysis Page 16
June 30, 2021 Actuarial Valuation for Fire Safety Classic Tier  Valuation Date  June 30, 2021
 Discount Rate  6.8%, same as CalPERS 6/30/21 valuation  Pay Increases  Aggregate: 2.80% annually
 Merit: CalPERS 1997-2019 Experience Study
 Retirement, Mortality,
Termination, Disability
 Rates from CalPERS 1997-2019 Experience Study
 All Other  Same as in 6/30/2021 CalPERS actuarial valuation  Census Data  Provided by City of Arroyo Grande
 Pension reports downloaded by City from MyCalPERS
 CalPERS OPEB database downloaded by City from MyCalPERS  Census files contain earnings and employment history for FCFA Fire Safety employees and current information for Fire Safety retirees.
 Cost Method and
Actuarial Liability
 Entry Age Normal cost method
 Pension Actuarial Accrued Liability (AAL) calculated on all City + FCFA service for active employees and on the pension benefit retirees are receiving for service
 Future Employees  None considered in study - closed group SECTION 10

SUMMARY OF CALPERS BENEFITS
CalPERS Unfunded Liability Analysis Page 17
Summary of CalPERS Benefits
 Eligibility  Service or Disability retirement under CalPERS  Service Retirement
Benefit
 Fire Safety Classic Tier:
 3% @55
 1-year FAC (Final Average Compensation)
 Miscellaneous Classic Tier 1:
 2.5% @55
 1-year FAC
 Miscellaneous Classic Tier 2:
 2.0% @55
 3-year FAC
 Fire Safety PEPRA Tier:
 2.7% @57
 3-year FAC
 Normal Benefit
Form
 Single life annuity
 Statutory Member
Contributions
 Fire Safety Classic: 9% of pay
 Miscellaneous Classic Tier 1: 8%
 Miscellaneous Classic Tier 2: 7%
 Fire Safety PEPRA: 13% for FY 2022-23, 13.75% for
FY 2023-24
 Employer Paid
Member
Contributions,
Employee
Cost Sharing
 None
 COLA  Up to 2% per year
SECTION 11

DETAIL OF FIRE SAFETY CLASSIC TIER UAAL ALLOCATION
CalPERS Unfunded Liability Analysis Page 18
The UAAL is not calculated directly for plans in the CalPERS risk pool, and plan assets are also not recorded and maintained separately for each risk pool plan. Instead, CalPERS uses the following procedure, which we followed in this study for purposes of splitting the Fire Safety Classic tier. CalPERS began the above methodology beginning with the June 30, 2013 actuarial valuations.

1. The plan’s AAL is calculated at the valuation date

2. The plan’s projected UAAL balance is calculated as of the valuation date equal to the balance of the previous year’s amortization bases remaining at the valuation date.

3. The AAL is calculated for the risk pool

4. The projected UAAL balance for all plans in the risk pool is totaled

5. The investment (gain) or loss for the risk pool for the year ending on the valuation date is calculated, reduced by any amounts needed to offset risk mitigation

6. The non-investment (gain) or loss for the risk pool for the year ending on the valuation date is calculated

7. The plan is allocated a share of the risk pool’s investment (gain) or loss in proportion to the difference between the plan’s AAL and its projected UAAL (item (2) above): [(1) - (2)] ÷ [(3) - (4)] × (5)

8. The plan is allocated a share of the risk pool’s non- investment (gain) or loss in proportion to the AAL: [(1) ÷ (3)] × (6)

9. Any increase in the risk pool’s AAL due to actuarial assumption or method changes, risk mitigation, and risk mitigation offsets are calculated

10. The plan is allocated a share of the risk pool’s change in assumptions or method, risk mitigation, and risk mitigation offset UAAL in proportion to the AAL:
[(1) ÷ (3)] × (9)

11. The plan’s UAAL at the valuation date is the sum of the projected UAAL plus additional allocated UAL amounts: (2) + (7) + (8) + (10)

12. The plans share of the risk pool assets at the valuation date is the plan’s AAL less its allocated UAAL: (1) – (11)
SECTION 11

DETAIL OF FIRE SAFETY CLASSIC TIER UAAL ALLOCATION
CalPERS Unfunded Liability Analysis Page 19
Valuation date 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Discount rate 7.50% 7.50% 7.50% 7.50% 7.50% 7.375% 7.25% 7.00% 7.00% 7.00% 6.80% Counts (Total Plan) (CalPERS reports)Active employees 16 17 21 21 17 17 15 15 16 16 16 Transferred 4 4 6 6 8 7 9 8 9 9 9 Separated 1 1 2 2 5 6 5 5 3 3 3 Retired 6 5 4 4 4 4 6 7 8 8 8 Actuarial Accrued Liability Allocated City AAL 2,942,938 2,933,663 2,891,099 3,019,230 2,785,225 2,943,477 3,088,902 3,246,904 3,418,715 3,449,310 3,568,391 Allocated FCFA AAL - 356,794 781,626 1,432,538 2,002,429 2,786,799 3,616,082 4,680,862 5,488,356 6,225,397 7,305,908 Total AAL (CalPERS reports) 2,942,938 3,290,457 3,672,725 4,451,768 4,787,654 5,730,276 6,704,984 7,927,766 8,907,071 9,674,707 10,874,299 New UAAL Amounts at each valuation date from CalPERS reports: Plan's unamortized balance of previous UAAL bases 886,322 716,195 959,726 1,364,859 1,366,426 1,661,053 1,765,570 1,983,320 Plan's share of investment (gain) -323,343 211,293 316,121 -182,517 -64,840 35,276 181,875 -962,770 Plan's share of other (gain) 3,954 -743 -48,572 4,232 27,859 37,569 28,813 -40,832 Plan's share of assumption (gain) 210,805 0 87,694 123,856 217,538 57,539 Plan's share of method/risk mitigation (gain) 51,149 262,638 Plan's risk mitigation offset -307,316 SECTION 11

DETAIL OF FIRE SAFETY CLASSIC TIER UAAL ALLOCATION
CalPERS Unfunded Liability Analysis Page 20
Valuation date 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021Determination of UAAL and Assets at each valuation date City AAL% 78.718% 67.821% 58.175% 51.367% 46.069% 40.956% 38.382% 35.653% 32.815% FCFA AAL% 21.282% 32.179% 41.825% 48.633% 53.931% 59.044% 61.618% 64.347% 67.185% City basis for investment gain allocation3 2,321,534 2,201,139 2,223,881 2,177,252 2,326,490 2,378,377 2,380,522 2,446,467 FCFA basis for investment gain allocation 1,243,912 1,870,321 2,546,668 3,162,873 4,234,851 4,867,641 5,528,615 6,444,512 City Investment Gain% 0.000% 65.112% 54.063% 46.617% 40.772% 35.458% 32.823% 30.098% 27.516% FCFA Investment Gain% 0.000% 34.888% 45.937% 53.383% 59.228% 64.542% 67.177% 69.902% 72.484% City share of previous UAAL bases - 697,696 584,085 719,596 911,650 920,414 1,040,338 1,068,788 1,121,924 FCFA share of previous UAAL bases - 188,626 132,109 240,131 453,209 446,011 620,715 696,782 861,396 City share of new UAAL bases 734,453 (64,884) 113,798 167,462 (15,406) 98,463 25,998 65,014 (274,097) FCFA share of new UAAL bases 198,564 (43,700) 96,752 187,781 (39,023) 133,243 46,847 145,674 (716,644) Total UAAL (CalPERS reports) 933,017 777,738 926,744 1,314,970 1,310,430 1,598,131 1,733,898 1,976,258 992,579 SummaryCity AAL 2,891,099 3,019,230 2,785,225 2,943,477 3,088,902 3,246,904 3,418,715 3,449,310 3,568,391 City Assets 2,156,646 2,386,418 2,087,341 2,056,419 2,192,659 2,228,027 2,352,378 2,315,508 2,720,564 City UAAL 734,453 632,812 697,884 887,058 896,243 1,018,877 1,066,337 1,133,802 847,827 FCFA AAL 781,626 1,432,538 2,002,429 2,786,799 3,616,082 4,680,862 5,488,356 6,225,397 7,305,908 FCFA Assets 583,062 1,287,612 1,773,569 2,358,887 3,201,895 4,101,608 4,820,795 5,382,941 7,161,156 FCFA UAAL 198,564 144,926 228,860 427,912 414,187 579,254 667,561 842,456 144,752 3 Plan’s AAL minus Plan's unamortized balance of previous UAAL bases SECTION 12

DEFINITIONS
CalPERS Unfunded Liability Analysis Page 21
 Present Value of Benefits (PVB): An actuarial valuation begins with participant data (including active employees, former employees not in payment status, participants and beneficiaries in payment status) at the valuation date. Using this data and actuarial assumptions, the actuary projects future benefit payments. The assumptions model, among other things, when people will retire, terminate, die or become disabled, as well as what future benefits might be, depending on such things as future salary increases and cost of living. Those future benefit payments are discounted, using expected future investment return and the likelihood of receiving a benefit, back to the valuation date. This discounted present value is the plan's present value of benefits. It represents the amount the plan needs as of the valuation date to pay all future benefits – if all assumptions are met and no future contributions (employee or employer) are made.
 Normal Cost (NC): The Present Value of Benefits is not funded immediately upon an employee’s hire. Instead it is treated as deferred compensation and funded over an employee’s working career. The Normal Cost represents the portion of the present value of benefits allocated to, or expected to be earned (on an actuarial, not actual, basis) in the coming year. The Normal Cost is paid by employees and the employer each year as a percentage of PERSable payroll.
 Actuarial Accrued Liability (AAL): This represents the portion of the present value of benefits that participants have earned (on an actuarial, not actual, basis) through the valuation date, or allocated are considered to be allocated to periods of past service. This includes the full PVB for retirees and inactive participants, and a portion of the PVB for current active employees.
 Plan Assets: This includes funds that have been accumulated in CalPERS’ trust fund so they can pay plan benefits and expenses. Amounts are attributable to contributions made by employees and the employer, and to past investment earnings.  Unfunded Actuarial Accrued Liability (UAAL): If all actuarial assumptions had always been exactly met, the accumulated plan assets would equal the actuarial accrued liability. The difference between the actuarial accrued liability and plan assets is the UAAL. It represents the amount of the actuarial accrued liability that must still be funded.

Every year, during the actuarial valuation, the plan actuary calculates the increase or decrease in the UAAL from several sources including investment return and experience different than expected, and plan changes. Each of these is a new UAAL layer which is amortized – paid off over time by additional employer contributions.

The total UAAL amortization payment is paid monthly as a separate portion of the employer contribution.

Approved
Budget
Adjusted
Budget
Baker Tilly A-4
Estimate
Proposed
Budget
2020-21 2021-22 2022-23 2022-23 2023-24 2023-24
Beginning Fund Balance $ 1,005,267 $ 1,387,744 $ 1,324,318 $ 1,324,318 $ 1,143,000 $ 1,124,939 $ (18,061) Revenues 6,789,777 6,572,902 5,849,718 7,010,580 8,475,000 8,413,610 (61,390) Expenditures:

Salaries & Benefits 5,254,729 5,546,681 5,522,800 5,645,100 6,801,000 6,801,000 - Services & Supplies 905,228 975,437 1,089,075 1,183,775 1,272,000 1,527,143 255,143 Equipment Replacement 146,147 13,013 100,000 227,187 204,000 264,000 60,000 Debt Service 101,197 101,197 153,897 153,897 464,000 153,893 (310,107) Total Expenditures 6,407,300 6,636,328 6,865,772 7,209,959 8,741,000 8,746,036 5,036 Change in Fund Balance 382,477 (63,426) (1,016,054) (199,379) (266,000) (332,426) Ending Fund Balance $ 1,387,744 $ 1,324,318 $ 308,264 $ 1,124,939 $ 877,000 $ 792,513

10.03% 9.06%
Variance Baker
Tilly vs Proposed
Better/(Worse)

ACTUALS

FIVE CITIES FIRE AUTHORITY
For the Fiscal Year Ending June 30, 2024
Attachment 4