F. CONSULTANT shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of CONSULTANT and without its fault or negligence such as, acts of God or the public enemy, acts of CITY in its contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. CONSULTANT shall notify the Director or his/her designee in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Director or his/her designee of the cessation of such occurrence.
G. CONSULTANT agrees that, notwithstanding any contrary provision in this Agreement, any dispute arising from or relating to this Agreement (including, without limitation, disputes based on contract, tort, equity or statute) may, at CITY’S option, be joined and consolidated with any other dispute or disputes arising from or relating to the PROJECT so that all disputes arising from or relating to the PROJECT may be resolved in a single proceeding. CONSULTANT hereby specifically waives any objection it may otherwise have to such joinder and consolidation and specifically consents to mediation, arbitration or any other dispute resolution mechanism, forum or proceeding necessary to effectuate the joinder and consolidation contemplated by this provision.
ARTICLE IV. CONFIDENTIAL INFORMATION, OWNERSHIP OF DOCUMENTS AND COPYRIGHT LICENSE A. Any reports, information, or other data prepared or assembled by CONSULTANT pursuant to this Agreement shall not be made available to any individual or organization by CONSULTANT without the prior written approval of CITY. During the term of this Agreement, and thereafter, CONSULTANT shall not, without the prior written consent of CITY, disclose to anyone any Confidential Information. The term Confidential Information for the purposes of this Agreement shall include all proprietary and confidential information of CITY, including but not limited to business plans, marketing plans, financial information, designs, drawings, specifications, materials, compilations, documents, instruments, models, source or object codes and other information developed pursuant to this Agreement, disclosed or submitted, orally, in writing, or by any other medium or media, (otherwise referred to as “work”). All Confidential Information shall be and remain confidential and proprietary in CITY.
B. CONSULTANT shall not reproduce (such as photographs and prints), duplicate, distribute reproductions, or incorporate into any trademark or service mark, the work without the prior written consent of CITY.
Any rights of the CONSULTANT in the work terminate upon the death of such CONSULTANT and do not extend to such CONSULTANT’S heirs, successors or assigns.
C. Title to the work shall pass to CITY upon final acceptance by CITY. CITY reserves the right to donate, transfer or sell the work or any portion thereof. CITY shall have the exclusive right to publicly display the work and shall have a license to reproduce (such as photographs and prints) or create three-dimensional reproductions of the work for any noncommercial purpose (including, but not limited to, books, slides, postcards, film, Internet sites, reproductions for advertising, and other media). Prior to public display, the CITY shall consider the sensitive nature and potential security risk of releasing the information to the general public. Such reproductions shall contain if legally necessary a copyright notice. Reproductions for commercial purposes are only to be made with the mutual written consent of CONSULTANT and CITY.
All references and reproductions or adaptations of the work will credit the work to the CONSULTANT unless CONSULTANT requests to the contrary. CITY reserves the right to modify, remove and/or relocate the work at any time, and after consultation with CONSULTANT, shall have the right to determine when and if modifications, repairs and/or restorations are needed. If City makes modifications, repairs or DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
restoration not approved by the CONSULTANT, the CONSULTANT shall have the right to sever its association with the work. CONSULTANT agrees to give CITY written notice prior to asserting any claim pertaining to the work, and CITY shall have not less than 90 days from the date of receipt of claim to cure any such claim. CITY may incorporate the work into any trademark or service mark to be utilized by City to register the same in accordance with Federal, state or local law.
D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (IV).
This Article (IV) shall survive expiration or termination of this Agreement.
ARTICLE V. PROFESSIONAL SKILL
It is further mutually understood and agreed by and between the parties hereto that inasmuch as CONSULTANT represents to CITY that CONSULTANT and its subcontractors, if any, are skilled in the profession and shall perform in accordance with the standards ordinarily performed by members of said profession practicing under similar circumstances, as necessary to perform the services agreed to be done by it under this Agreement, CITY relies upon the skill of CONSULTANT and any subcontractors to do and perform such services in a skillful manner and CONSULTANT agrees to thus perform the services and require the same of any subcontractors. Therefore, any acceptance of such services by CITY shall not operate as a release of CONSULTANT or any subcontractors from said professional standards.
ARTICLE VI. INDEMNIFICATION AND DEFENSE
A. Indemnification and Defense for Professional Services: To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY and any and all of its officers, officials, employees, agents and volunteers (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’S duty to defend shall consist of reimbursement of defense costs incurred by CITY in direct proportion to the CONSULTANT’S proportionate percentage of fault.
CONSULTANT’S percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the CONSULTANT’S percentage of fault, the parties agree to mediation with a third party neutral to determine the CONSULTANT’S proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the CITY.
B. For All Other Liabilities: Notwithstanding the foregoing and without diminishing any rights of CITY under this Article (V), for any liability, claim, demand, allegation against CITY arising out of, related to, or pertaining to any act or omission of CONSULTANT, but which is not a design professional service, CONSULTANT shall defend, indemnify, and hold harmless CITY, its officials, employees, and agents (“Indemnified Parties”) from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the CITY, except for the sole or active negligence of, or willful misconduct of the CITY.
C. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This Article (VI) shall survive termination or expiration of this Agreement.
ARTICLE VII. INSURANCE
A. Throughout the life of this Agreement, CONSULTANT shall pay for and maintain in full force and effect all insurance as required in Exhibit B, which is incorporated into and part of this Agreement, with an insurance company(ies) either:
(i) Admitted by the California Insurance Commissioner to do business in the State of California and rated no less than “A-VII” in the Best’s Insurance Rating Guide; or (ii) As may be authorized in writing by CITY'S Administrative Services Director, or his/her successor, or his/her designee at any time and in his/her sole discretion. The required policies of insurance as stated in Exhibit B shall maintain limits of liability of not less than those amounts stated therein.
B. If at any time during the life of the Agreement or any extension, CONSULTANT or any of its subcontractors/sub-consultants fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued immediately, and all payments due or that become due to CONSULTANT shall be withheld until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this Article (VII) shall in any way relieve CONSULTANT of its responsibilities under this Agreement. The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent.
C. The fact that insurance is obtained by CONSULTANT shall not be deemed to release or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of CONSULTANT, its principals, officers, agents, employees, persons under the supervision of CONSULTANT, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.
D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor/sub-consultant to provide insurance protection, as an additional insured, to the CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of this section, except that any required certificates and applicable endorsements shall be on file with CONSULTANT and CITY prior to the commencement of any services by the subcontractor. CONSULTANT and any subcontractor/sub-consultant shall establish additional insured status for CITY, its officers, officials, employees, agents and volunteers.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
ARTICLE VIII. CONFLICT OF INTEREST AND NON-SOLICITATION A. Prior to CITY’S execution of this Agreement, CONSULTANT shall complete a City of Grover Beach Conflict of Interest Disclosure Statement in the form as set forth in Exhibit C. During the term of this Agreement, CONSULTANT shall have the obligation and duty to immediately notify CITY in writing of any change to the information provided by CONSULTANT in such statement.
B. CONSULTANT shall comply, and require its subcontractors to comply, with all applicable (i) Professional canons and requirements governing avoidance of impermissible client conflicts; and
(ii) Federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code Section 1090 et. seq., the California Political Reform Act (California Government Code Section 87100 et. seq.), and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations Section 18700 et. seq.).
At any time, upon written request of CITY, CONSULTANT shall provide a written opinion of its legal counsel and that of any subcontractor that, after a due diligent inquiry, CONSULTANT and the respective subcontractor(s) are in full compliance with all laws and regulations. CONSULTANT shall take, and require its subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest. Upon discovery of any facts giving rise to the appearance of a conflict of interest, CONSULTANT shall immediately notify CITY of these facts in writing.
C. In performing the work or services to be provided hereunder, CONSULTANT shall not employ or retain the services of any person while such person either is employed by CITY or is a member of any CITY council, commission, board, committee, or similar CITY body. This requirement may be waived in writing by the City Manager, if no actual or potential conflict is involved.
D. CONSULTANT represents and warrants that it has not paid or agreed to pay any compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or any rights/benefits hereunder.
E. Neither CONSULTANT, nor any of CONSULTANT’S subcontractors performing any services on this Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services pursuant to, any other contract in connection with this Project. CONSULTANT and any of its subcontractors shall have no interest, direct or indirect, in any other contract with a third party in connection with this Project unless such interest is in accordance with all applicable law and fully disclosed to and approved by the City Manager, in advance and in writing.
F. If CONSULTANT should subcontract all or any portion of the work to be performed or services to be provided under this Agreement, CONSULTANT shall include the provisions of this Article in each subcontract and require its subcontractors to comply therewith.
This Article (VIII) shall survive termination or expiration of this Agreement.
ARTICLE IX. GENERAL TERMS
A. Except as otherwise provided by law, all notices expressly required of CITY within the body of this Agreement, and not otherwise specifically provided for, shall be effective only if signed by the Director or his/her designee.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
B. Records of CONSULTANT’S expenses pertaining to the Project shall be kept on a generally recognized accounting basis and shall be available to CITY or its authorized representatives upon request during regular business hours throughout the life of this Agreement and for a period of three years after final payment or, if longer, for any period required by law. In addition, all books, documents, papers, and records of CONSULTANT pertaining to the Project shall be available for the purpose of making audits, examinations, excerpts, and transcriptions for the same period of time. If any litigation, claim, negotiations, audit or other action is commenced before the expiration of said time period, all records shall be retained and made available to CITY until such action is resolved, or until the end of said time period whichever shall later occur. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this paragraph. This Article 10(B) shall survive expiration or termination of this Agreement.
C. Prior to execution of this Agreement by CITY, CONSULTANT shall have provided evidence to CITY that CONSULTANT is licensed to perform the services called for by this Agreement (or that no license is required). CONSULTANT and any subcontractors shall agree to obtain any local licensing or certifications necessary to perform services within the City, including but not limited to City Business Tax Certificates. If CONSULTANT should subcontract all or any portion of the work or services to be performed under this Agreement, CONSULTANT shall require each subcontractor to provide evidence to CITY that subcontractor is licensed to perform the services called for by this Agreement (or that no license is required) before beginning work.
ARTICLE X. NONDISCRIMINATION
To the extent required by controlling federal, state and local law, CONSULTANT shall not employ discriminatory practices in the provision of services, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject to the foregoing and during the performance of this Agreement, CONSULTANT agrees as follows:
A. CONSULTANT will comply with all applicable laws and regulations providing that no person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement.
B. CONSULTANT will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. CONSULTANT shall ensure that applicants are employed, and the employees are treated during employment, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. Such requirement shall apply to CONSULTANT’S employment practices including, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONSULTANT agrees to post in DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this nondiscrimination clause.
C. CONSULTANT will, in all solicitations or advertisements for employees placed by or on behalf of CONSULTANT in pursuit hereof, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.
D. CONSULTANT will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising such labor union or workers' representatives of CONSULTANT’S commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
E. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (X).
ARTICLE XI. INDEPENDENT CONTRACTOR
A. In the furnishing of the services provided for herein, CONSULTANT is acting solely as an independent contractor. Neither CONSULTANT, nor any of its officers, agents or employees shall be deemed an officer, agent, employee, joint venture, partner or associate of CITY for any purpose. CITY shall have no right to control or supervise or direct the manner or method by which CONSULTANT shall perform its work and functions. However, CITY shall retain the right to administer this Agreement so as to verify that CONSULTANT is performing its obligations in accordance with the terms and conditions thereof.
B. This Agreement is not evidence of a partnership or joint venture between CONSULTANT and CITY.
CONSULTANT shall have no authority to bind CITY absent CITY’S express written consent. Except to the extent otherwise provided in this Agreement, CONSULTANT shall bear its own costs and expenses in pursuit thereof.
C. Because of its status as an independent contractor, CONSULTANT and its officers, agents and employees shall have absolutely no right to employment rights and benefits available to CITY employees. CONSULTANT shall be solely liable and responsible for all payroll and tax withholding and for providing to, or on behalf of, its employees all employee benefits including, without limitation, health, welfare and retirement benefits. In addition, together with its other obligations under this Agreement, CONSULTANT shall be solely responsible, indemnify, defend and save CITY harmless from all matters relating to employment and tax withholding for and payment of CONSULTANT'S employees, including, without limitation:
(i) Compliance with Social Security and unemployment insurance withholding, payment of workers’ compensation benefits, and all other laws and regulations governing matters of employee withholding, taxes and payment; and
(ii) Any claim of right or interest in CITY employment benefits, entitlements, programs and/or funds offered employees of CITY whether arising by reason of any common law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the term of this Agreement, CONSULTANT may be providing services to others unrelated to CITY or to this Agreement.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
ARTICLE XII. NOTICES
All notices, including notices of address changes, required to be sent hereunder shall be in writing and shall be deemed to have been given when mailed to the addresses listed below:
A. CITY: City of Grover Beach, Gregory A. Ray, Director of Public Works, 154 South Eighth Street, Grover Beach, CA 93433
B. CONSULTANT: Wallace Group, Kari Wagner, Principal, 612 Clarion Court, San Luis Obispo, CA 93401 ARTICLE XIII. BINDING
Subject to Article XII, below, once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each parties' respective heirs, successors, assigns, transferees, agents, servants, employees and representatives.
ARTICLE XIV. ASSIGNMENT
A. This Agreement is personal to CONSULTANT and there shall be no assignment by CONSULTANT of its rights or obligations under this Agreement without the prior written approval of the Grover Beach City Council. Any attempted assignment by CONSULTANT, its successors or assigns, shall be null and void unless approved by the Grover Beach City Council.
B. CONSULTANT hereby agrees not to assign the payment of any monies due CONSULTANT from CITY under the terms of this Agreement to any other individual(s), corporation(s) or entity(ies). CITY retains the right to pay any and all monies due CONSULTANT directly to CONSULTANT.
ARTICLE XV. COMPLIANCE THE LAW
In providing the services required under this Agreement, CONSULTANT shall at all times comply with all applicable laws of the United States, the State of California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
ARTICLE XVI. WAIVER
The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
ARTICLE XVII. GOVERNING LAW AND VENUE
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Luis Obispo County, California.
ARTICLE XVIII. HEADINGS
The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of the provisions of this Agreement.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
ARTICLE XIX. SEVERABILITY
The provisions of this Agreement are severable. The invalidity, or unenforceability of any one provision in this Agreement shall not affect the other provisions.
ARTICLE XX. INTERPRETATION
The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
ARTICLE XXI. ATTORNEY’S FEES
If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses.
ARTICLE XXII. EXHIBITS
Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement
ARTICLE XXIII. PRECEDENCE OF DOCUMENTS
In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or Attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void.
ARTICLE XXIV. CUMULATIVE REMEDIES
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
ARTICLE XXV. NO THIRD-PARTY BENEFICIARIES
The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
ARTICLE XXVI. EXTENT OF AGREEMENT
Each party acknowledges that they have read and fully understand the contents of this Agreement and any documents issued that resulted in selection of CONSULTANT for entry into this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersede all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both CITY and CONSULTANT.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
AGREEMENT SIGNATURES
CITY OF GROVER BEACH, CALIFORNIA
PROFESSIONAL CONSULTANT SERVICES
FOG Program Administration Services
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement effective as of the day and year first written above.
CITY OF GROVER BEACH
Karen Bright, Mayor Date
Attest:
Wendi Sims, City Clerk Date
Approved as to Form:
David P. Hale, City Attorney Date
Wallace Group
Kari Wagner, PE C66026, Principal Date
Attachments:
1. Exhibit A - Scope of Services and Fee Schedule
2. Exhibit B - Insurance Requirements
3. Exhibit C - Disclosure of Conflict of Interest
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E 7/18/2023
EXHIBIT A
PROFESSIONAL CONSULTANT SERVICES
CONSULTANT SCOPE OF WORK AND FEE SCHEDULE
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E Wallace Group
City of Grover Beach|FOG Program Administration Services 8 6. COST SCHEDULE
Wallace Group, A California Corporation
Standard Billing Rates
Public Works Administration Services:
Principal ........................................................... $260 Project Analyst I - IV ............................................. $115/$125/$135/$145 Senior Project Analyst I - III .................................... $150/$155/$160 Senior Environmental Compliance Specialist I - III .......... $165/$170/$175 Support Services:
Office Assistant ................................................... $100 Project Assistant I – III ........................................... $110/$115/$125 Right to Revisions:
The Cost Schedule submitted with proposal shall remain in effect throughout the first year of the agreement. For the second, third and optional fourth or fifth year of the agreement (if extended), Wallace Group reserves the right to revise our standard billing rates on an annual basis, personnel classifications may be added as necessary. Additionally, the billing rate for each position listed on the Cost Schedule shall be adjusted on the following January 1 of each year.
Additional Professional Services:
Fees for expert witness preparation, testimony, court appearances, or depositions will be billed at the rate of $400 an hour. If required to meet schedule requests, overtime on a project will be billed at 1.5 times the employee’s typical hourly rate.
Direct Expenses:
Direct expenses will be invoiced to the client and a handling charge of 15% may be added.
Sample direct expenses include, but are not limited to the following:
travel expenses sub-consultant services agency fees delivery/copy services mileage (per IRS rates) other direct expenses Invoicing and Interest Charges:
Invoices are submitted monthly on an accrued cost basis. A finance charge of 1.5% per month may be assessed on all balances that are thirty days past due.
WALLACE GROUP
2022 Standard Billing Rates
612 Clarion Court
San Luis Obispo
California 93401
T 805-544-4011
F 805-544-4294
www.wallacegroup.us
City of Grover Beach FOG & Stormwater Services RFP
Task Hours Rate: Project
Analyst II
Rate: Senior
Environemental
Compliance
Specialist III
Fees
1. Project Management & QA/QC 10 $125 $175 1,750.00
2. Meetings 8 $125 $175 1,400.00
3. Permitting 20 $125 $175 2,500.00
4. Inspections 130 $125 $175 16,250.00
5. Reinspections 48 $125 $175 6,000.00
6. Reporting 26 $125 $175 3,250.00
7. Ancillary/Miscellaneous Services 8 $125 $175 1,400.00 Reimbursables 500.00
TOTALS (Annual Fiscal Year Cost Estimate) 250 33,050.00 Proposed Cost Schedule Valid from June 29, 2023 – June 31, 2024.
Proposed Cost Schedule subject to change after the first year.
Wallace Group does not use multiplier rates.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E Wallace Group
City of Grover Beach|FOG Program Administration Services 9 7 . S U P P O R T I N G I N F O R M A T I O N
Litigation Statement
Wallace Group was the design engineer for a
partially buried, concrete tank in the City of Pismo
Beach. The new tank was constructed in between
an existing partially buried concrete tank and an
adjacent two-story residence.
The owner of the residence filed a claim against the
City and contractor, for the following reasons.
1. Excess vibration during construction caused
sloping, settling, cracked garage foundation and
stucco walls, and a cracked walkway.
2. The on-site generator caused loud noises and
excess fumes when running.
The City and contractor took pictures and video
prior to start of construction which showed cracks in
the concrete and stucco prior to tank construction.
The suit was settled through mediation. Wallace
Group’s settlement fees were $4,500.
Scope of Services
Project Management and QA/QC
Our successful approach revolves
around two key elements:
communication and quality
assurance/quality control (QA/
QC).
Communication
We strive to keep you, the client apprised of the current status of the project at all times. This is done through a multitude of sources, such as:
Project Management Plan – Our Project Manager
prepares a Project Management Plan (PMP) at the
beginning of each project. This internal “living”
document integrates into one location the goals, the
scope, schedule, budget, and any other important
component of the project. It allows all team members to understand the scope of the project and ensure that all team members are on the same page at the beginning
of the project. As a project progresses and schedules,
goals, scope, etc. change, this document is updated and shared with the team and the City.
Additional Communication – Our team members also
stay in constant communication through emails and
telephone calls, keeping the City apprised of any details that might impact the direction of the project. We
balance keeping the City knowledgeable about their
project, but not overburdened with the finite detail. We tailor the amount of information and decision-making
process to the desires of the City.
Keeping an open line of communication and dealing
with project constraints as they arise keeps our projects moving forward at the pace necessary to get the project completed on or before schedule.
Quality Assurance and Quality Control
Wallace Group’s Quality Assurance Program is based
upon one of our core values: a passion for quality
and excellence in our work, services and products.
Our internal review policy calls for a review at each
milestone of the project by senior environmental
compliance specialists with expertise in sewer system
management plans and FOG Control & Stormwater
Control Programs. We combine this with our project
management procedures and focus on responsiveness
and client communication for maintaining a highquality project.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E Wallace Group
City of Grover Beach|FOG Program Administration Services Meetings (Virtual Meetings)
• Two (2) Annual meetings to discuss goals for
FOG Program each Fiscal Year:
» One (1) one-hour FOG and Storm Water
Program meeting to review the status of the
existing FOG and Storm Water Programs at
the beginning of each Fiscal Year.
» One (1) Mid-Year Status Meeting to discuss
program status, any necessary program
modifications, compliance issues, and
any other matters that are pertinent to a
successful FOG and Stormwater Inspection
Program.
• Three (3) additional meetings will be budgeted,
to be conducted throughout each Fiscal Year on
an as needed basis when requested by the City
or when Wallace Group identifies any program
issues that require a formal meeting.
Wallace Group will provide a Project Record
summarizing each meeting conducted.
Permitting and Inspections (FOG & SW)
Wallace Group will perform FOG permitting,
inspections, and re-inspections for the City’s FSEs.
Stormwater inspections for compliance with the
City’s MS4 Program requirements are also included
in this scope as detailed below.
The FOG Program is an element of the City’s SSMP
which is a requirement of the Statewide General
Waste Discharge Requirement 2022-0103-DWQ
enacted by the State Water Resources Control
Board. The FOG program will include:
• Semi-annual inspection of approximately 70 FSEs
and two (2) additional car wash facilities.
• Performance of re-inspections when needed to assist
in FSE compliance.
• Re-permitting of all FSEs enrolled in the FOG
Program.
• Permitting of new FSEs that opened for business in
each fiscal year and removal from the FOG Program
of those FSEs that have closed.
• Stormwater inspections will be documented on
a separate stormwater inspection form. Monthly
reports will include copies of completed inspection
forms.
Deliverables:
• Electronic copies of all inspection reports (PDF
format).
• Electronic copies of FOG inspection procedure
updates as applicable.
• Electronic copies of all permit applications and
permits issued (PDF format).
• Monthly reporting of FOG and Storm Water
Inspection program status (PDF format).
• Electronic copies of photos for facility storm water
violations (illicit discharges) as appropriate.
Storm Water inspections will be conducted with FOG
Inspections as described above to assist the City in
complying with Provisions of the SWRCB MS4 Storm
Water Permit, specifically those items found in the City’s 2010 Storm Water Management Program - Section 3:
Storm Water.
Management Program Requirements and Best
Management Practices Implementation shown in the
Table below:
Table: City of Grover Beach Storm Water Plan FSE References Section Implementation Method BMP
3.1.1 Educating Restaurant
Owners.
PE1M: Distribute printed materials, in English and Spanish, to all restaurant owners about the proper disposal of restaurant wastes, including grease clogging, wash water, and mat, floor, and patio cleaning. The City will provide the above-mentioned materials for distribution.
3.1.3 Implementing and enforcing
new and existing measures.
Il1G: Inspect all restaurants annually through the FOG & Storm Water Inspection Program. FOG Control Inspectors will report all storm water violations to the Public Works Department for follow up.
3.1.3 Inform public and employees
of good storm water
management
practices.
IL4D: Train restaurant FOG Control Inspectors in illicit discharge detection and elimination.
Wallace Group inspectors will implement training completed in 2016 on the City IDDE Plan and conduct inspections based on this training. 10 Scope of Services Continued
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E Wallace Group
City of Grover Beach|FOG Program Administration Services Wallace Group will inspect the following areas of
each FSE that have the potential for Illicit Discharge:
• Recycled Waste Cooking Oil Area,
• Mat Wash Areas,
• Leaking Dumpsters,
• Residuals from Exhaust Hoods,
• Storm drain inlets in the immediate vicinity of
these areas described above.
Significant or active illicit discharges will be
reported to the City immediately upon discovery.
Routine violations will be reported for Code
Compliance follow up if specific storm water
violation has not been corrected by the scheduled
time of re-inspection (Ex; 14 days). Violations will
be documented using the current inspection format,
describing the illicit discharge location and source
of discharge.
Reporting
Wallace Group will maintain a database that includes
FSE contact information, inspection history, status of
FOG Inspections and Permits. A separate database
will be maintained for the same facilities to track
stormwater compliance.
Monthly Reports
Monthly summary reports will be submitted to the
City. These reports will include a summary sheet
documenting the number of inspections conducted,
regulatory status of noncompliant facilities,
corrective actions that have been completed and
other pertinent information. A separate section of
this summary report will include similar information
on the status of stormwater inspections. A PDF copy
of each database and inspections completed for the
month will be included with monthly reports.
Annual Reports
Annual Reports will summarize the information
discussed above and will provide a general synopsis
of inspections conducted for the Fiscal Year for
both FOG and Stormwater inspections. A PDF of
each database will be provided with this report.
Any recommendations for program modifications
from Wallace Group will be included in this Annual
Report.
Ancillary/Miscellaneous Services
Wallace Group has included an additional eight hours
in this scope of work to assist the City with other tasks as requested. Some of these tasks may include:
• Secondary layer of Plumbing Plan review for
FSEs to ensure adequate FOG control devices are
installed such as gravity grease interceptors or
hydromechanical grease interceptors.
• Assistance with staff reports.
• Attendance at meetings.
• FOG & Stormwater Educational and Outreach
efforts requested by the City.
11 DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
EXHIBIT B
PROFESSIONAL CONSULTANT SERVICES
INSURANCE REQUIREMENTS
Without limiting CONSULTANT’S indemnification of CITY, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
Note: Workers' compensation and employer's liability insurance requirements may be eliminated for certain sole proprietorships, partnerships, or corporations without employees.
Consultant shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or selfinsurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’S own insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’S rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’S Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any crossliability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.
CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and Consultant may renegotiate CONSULTANT’S compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’S performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E
EXHIBIT C
PROFESSIONAL CONSULTANT SERVICE
CITY OF GROVER BEACH
DISCLOSURE OF CONFLICT OF INTEREST
Explanation:
Signature
Date
Name
Company
Address
Additional page(s) attached.
City, State, Zip
YES* NO
1 Are you currently in litigation with the City of Grover Beach or any of its agents?
2 Do you represent any firm, organization or person who is in litigation with the City of Grover Beach?
3 Do you currently represent or perform work for any clients who do business with the City of Grover Beach?
4 Are you or any of your principals, managers or professionals, owners or investors in a business which does business with the City of Grover Beach, or in a business which is in litigation with the City of Grover Beach? 5 Are you or any of your principals, managers or professionals, related by blood or marriage to any City of Grover Beach employee who has any significant role in the subject matter of this service? 6 Do you or any of your subcontractors have, or expect to have, any interest, direct or indirect, in any other contract in connection with this Project? * If the answer to any question is yes, please explain in full below.
DocuSign Envelope ID: DB111350-7254-4EFC-A71D-C8086ADD8B0E X
X
X
Kari Wagner
X
Wallace Group
X
7/18/2023
612 Clarion Court, San Luis Obispo, Ca 93401
X
N/A
Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Gabriel Munoz-Morris, CIP Manager
SUBJECT: Construction Contract for Major Street Pavement Repair Project
RECOMMENDATION
Award a contract for construction for the Major Street Pavement Repair project to Apodaca Paving Inc. in the amount of $167,120 for the Base Bid; authorize the City Manager to sign and affirm construction change orders up to an aggregate of $16,880; and authorize the Mayor to execute the contract on behalf of the City.
BACKGROUND
The Council identified “Street Maintenance and Complete Streets” as one of the Major City Goals for FY 2023-25. Many major streets were impacted during the winter 2023 storm events and Public Works maintenance staff performed extensive pothole patching and minor repair work to ensure the continued usability of the City’s major streets. However, several areas are in need of more extensive repairs until the City’s programmed Capital Improvement Program projects allow for a full pavement rehabilitation. Specifically, sections of West Grand Avenue from 8th Street to Oak Park Boulevard, El Camino Real from North 12th Street to Oak Park Boulevard, South Oak Park Boulevard from Mentone to The Pike, and The Pike from South Oak Park Boulevard to South 13th Street have several areas in need of pavement repairs.
Following identification of these areas needing repair, staff solicited bids and received two bids in the amounts of $167,120 and $217,280. The lowest bidder was Apodaca Paving Inc. from Grover Beach with a bid of $167,120. Apodaca Paving Inc. has performed satisfactory pavement repair work for the City before, most recently on North 4th Street from West Grand Avenue to Ocean View Avenue. Staff is recommending the Council award the construction contract to Apodaca Paving for this project.
FISCAL IMPACT
This project is funded using Local Transportation Funds. The total project cost includes the lowest bid plus contingency as identified above for a total of $184,000. Staff is recommending the Council award to Apodaca Paving Inc. in the amount of $167,120 and authorize the City Manager to approve construction change orders, if necessary, up to an aggregate of $16,880.
Staff Report: Major Street Pavement Repair Project Page 2 July 24, 2023
ALTERNATIVES
The Council has the following alternatives to consider:
1. Award the contract for construction of the Major Streets Pavement Repair project to Apodaca Paving Inc. in the amount of $167,120 for the Base Bid; authorize the City Manager to sign and affirm construction change orders up to an aggregate of $16,880; and authorize the Mayor to execute the contract on behalf of the City; or
2. Delay award of the project and provide staff with additional direction; or
3. Reject all bids, modify the project, and re-advertise for bids as soon as possible.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Bid Results
2. Construction Contract with Apodaca Paving Inc.
City of Grover Beach Quote Results
Quote Due Date: Thursday, June 29, 2023 @ 2:00 p.m.
Quotes for: Major Street Pavement Repair Project
Quotes Received from:
No. Company Name & Address Total Base Bid
1 Apodaca Paving
P.O. Box 1
Grover Beach, CA 93483
2 Toste Grading & Paving
941 Griffin Street
Grover Beach, CA 93433
3 4
5 6
Attachment 1
AGREEMENT
CITY OF GROVER BEACH, CALIFORNIA
CONSTRUCTION SERVICES
MAJOR STREET PAVEMENT REPAIR PROJECT
THIS AGREEMENT is made and entered into effective the 24TH day of July 2023, by and between the CITY OF GROVER BEACH, a California municipal corporation (hereinafter referred to as "CITY"), and Apodaca Paving Inc. (hereinafter referred to as "CONTRACTOR").
RECITALS
WHEREAS, CITY desires to obtain construction services for the Major Street Pavement Repair Project more specifically identified in the Scope of Work, jointly attached as “Exhibit A” to this Agreement, herein referred to as the PROJECT; and
WHEREAS, CONTRACTOR is engaged in the business of asphalt paving services and hereby represents that it desires to and is professionally and legally capable of performing the services called for by this Agreement; and
WHEREAS, this Agreement sets forth the terms and conditions under which CONTRACTOR shall perform work required in connection with the construction of said PROJECT, to be paid by the City of Grover Beach; and
WHEREAS, this Agreement will be administered for CITY by the Director of Public Works hereinafter referred to as DIRECTOR or his/her designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions, and promises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed as follows:
ARTICLE I. SCOPE OF SERVICES
CONTRACTOR shall furnish all labor, materials, equipment, tools, utility services, and transportation to perform and complete all work required in connection with the construction of said PROJECT described herein and more fully described in Exhibit A, and in accordance with local, State and Federal laws. This shall include all work incidental to, or necessary to perform, such services even though not specifically described in Exhibit A.
By entering into this Agreement, CONTRACTOR acknowledges that there may be other contractors on the site whose work will be coordinated with that of its own. CONTRACTOR expressly warrants and agrees that it will cooperate with other contractors and will do nothing to delay, hinder, or interfere with the work of other separate contractors. CONTRACTOR also expressly agrees that, in the event its work is hindered, delayed, interfered with, or otherwise affected by a separate contractor, its sole remedy will be a direct action against the separate contractor. To the extent allowed by law, the CONTRACTOR will have no remedy, and hereby expressly waives any remedy against the CITY, on account of delay, hindrance, interference or other events caused by a separate contractor.
Attachment 2
ARTICLE II. BEGINNING OF WORK AND TIME OF COMPLETION
The Contractor shall begin work within ten (10) calendar days after the contract has been approved by the City of Grover Beach. This work shall be diligently prosecuted to completion before the expiration of 10 working days beginning on the tenth calendar day after contract has been approved.
The Contractor shall pay to the City of Grover Beach the sum of zero ($0.00) per day, for each and every calendar days’ delay in finishing the work in excess of the number of working days prescribed above.
Hours of work shall be 7:00 a.m. to 5:00 p.m. on week days unless weekend or night work is approved.
Weekend or night work may be allowed when approved in writing by the City Engineer. No additional compensation will be allowed for weekend or night work.
ARTICLE III. COMPENSATION AND PAYMENT
A. CONTRACTOR’S sole compensation for satisfactory performance of all services required or rendered pursuant to this Agreement shall be performed on a fixed price basis of $167,120.00 B. CONTRACTOR shall invoice CITY on a monthly basis, via detailed statement, which will be processed and payable in the normal course of CITY business, typically within 30 days of receipt of an invoice unless otherwise identified in this Agreement.
C. The parties may modify this Agreement to increase or decrease the scope of services or provide for the rendition of services not required by this Agreement, which modification shall include an adjustment to CONTRACTOR’S compensation. Any change in the scope of services must be made by written Change Order to the Agreement signed by an authorized representative for each party.
CONTRACTOR shall not be entitled to any additional compensation if services are performed prior to a signed written Change Order.
D. The CONTRACTOR shall notify the CITY when all work under the contract has been completed. The CITY will promptly conduct a final inspection of the work and will advise the CONTRACTOR in writing of any additional work required to complete the PROJECT and process final payment. Upon acceptance of the work by the CITY, the final payment will be processed and payable in the normal course of CITY business, typically within 30 days of receipt of the final invoice unless otherwise identified in this Agreement.
ARTICLE IV. TERMINATION, REMEDIES, FORCE MAJEURE AND CONSOLIDATION OF DISPUTES A. This Agreement shall terminate without any liability of CITY to CONTRACTOR upon the earlier of:
(i) CONTRACTOR’S filing for protection under the federal bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third party against CONTRACTOR; (ii) Seven (7) calendar days written notice, with or without cause, by either the CITY or CONTRACTOR;
(iii) Expiration of this Agreement.
B. Upon any termination or expiration of this Agreement, CONTRACTOR shall (i) Immediately stop all work hereunder;
(ii) Immediately cause any and all of its subcontractors to cease work; and (iii) Return to CITY any and all unearned payments and all properties and materials in the possession of CONTRACTOR that are owned by CITY. Subject to the terms of this Agreement,
CONTRACTOR shall be paid compensation for services satisfactorily performed prior to the effective date of termination. CONTRACTOR shall not be paid for any work or services performed or costs incurred which reasonably could have been avoided.
C. In the event of termination due to failure of CONTRACTOR to satisfactorily perform in accordance with the terms of this Agreement, CITY may withhold an amount that would otherwise be payable as an offset to, but not in excess of, CITY’S damages caused by such failure. In no event shall any payment by CITY pursuant to this Agreement constitute a waiver by CITY of any breach of this Agreement which may then exist on the part of CONTRACTOR, nor shall such payment impair or prejudice any remedy available to CITY with respect to the breach.
D. Upon any breach of this Agreement by CONTRACTOR, CITY may:
(i) Exercise any right, remedy (in contract, law or equity), or privilege which may be available to it under applicable laws of the State of California or any other applicable law; (ii) Proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii) Recover all direct, indirect, consequential, economic and incidental damages for the breach of the Agreement. If it is determined that CITY improperly terminated this Agreement for default, such termination shall be deemed a termination for convenience.
E. CONTRACTOR shall provide CITY with adequate written assurances of future performance, upon the request of the Director or his/her designee, in the event CONTRACTOR fails to comply with any terms or conditions of this Agreement.
F. CONTRACTOR shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of CONTRACTOR and without its fault or negligence such as, acts of God or the public enemy, acts of CITY in its contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. CONTRACTOR shall notify the Director or his/her designee in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Director or his/her designee of the cessation of such occurrence.
G. CONTRACTOR agrees that, notwithstanding any contrary provision in this Agreement, any dispute arising from or relating to this Agreement (including, without limitation, disputes based on contract, tort, equity or statute) may, at CITY’S option, be joined and consolidated with any other dispute or disputes arising from or relating to the PROJECT so that all disputes arising from or relating to the PROJECT may be resolved in a single proceeding. CONTRACTOR hereby specifically waives any objection it may otherwise have to such joinder and consolidation and specifically consents to mediation, arbitration or any other dispute resolution mechanism, forum or proceeding necessary to effectuate the joinder and consolidation contemplated by this provision.
ARTICLE IV. PREVAILING WAGE AND REGISTRATION REQUIREMENTS Pursuant to Section 1773 of the Labor Code, the general prevailing wage rates in the county in which the work is to be done have been determined by the Director of the California Department of Industrial Relations. These wages are set forth in the General Prevailing Wage Rates for this project available from the California Department of Industrial Relations’ Internet website at:
http://www.dir.ca.gov/OPRL/PWD/
This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Pursuant to Section 1771.1(a) of the Labor Code:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”
CONTRACTOR must be registered with the Department of Industrial Relations (DIR) of the State of California in order to be eligible to work on public works projects. CONTRACTOR must ensure registration with the DIR that is active and in good standing.
CONTRACTOR shall ensure that any subcontractor working on the PROJECT is registered and in good standing with the Department of Industrial Relations (DIR) of the State of California.
ARTICLE V. CONTRACTOR’S LICENSE
CONTRACTOR must possess at the time of commencing work and throughout the PROJECT duration, a Class A Contractor's License, issued by the State of California, which is current and in good standing.
CONTRACTOR shall ensure that any subcontractor working on the PROJECT possesses at the time of commencing work and throughout the Project duration, an appropriate Contractor's License for the work being performed, issued by the State of California, which is current and in good standing.
ARTICLE VI. INDEMNIFICATION AND DEFENSE
A. CONTRACTOR shall indemnify, defend with legal counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal
counsel fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
B. CONTRACTOR obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of the CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY’S active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of the CITY.
C. If CONTRACTOR should subcontract all or any portion of the services to be performed under this Agreement, CONTRACTOR shall require each subcontractor to indemnify, hold harmless and defend CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This Article (VI) shall survive termination or expiration of this Agreement.
ARTICLE VII. INSURANCE
A. Throughout the life of this Agreement, CONTRACTOR shall pay for and maintain in full force and effect all insurance as required in Exhibit B, which is incorporated into and part of this Agreement, with an insurance company(ies) either:
(i) Admitted by the California Insurance Commissioner to do business in the State of California and rated no less than “A-VII” in the Best’s Insurance Rating Guide; or (ii) As may be authorized in writing by CITY'S Administrative Services Director, or his/her successor, or his/her designee at any time and in his/her sole discretion. The required policies of insurance as stated in Exhibit B shall maintain limits of liability of not less than those amounts stated therein.
B. If at any time during the life of the Agreement or any extension, CONTRACTOR or any of its subcontractors/sub-consultants fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued immediately, and all payments due or that become due to CONTRACTOR shall be withheld until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this Article (VII) shall in any way relieve CONTRACTOR of its responsibilities under this Agreement. The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent.
C. The fact that insurance is obtained by CONTRACTOR shall not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of CONTRACTOR, its principals, officers, agents, employees, persons under the supervision of CONTRACTOR, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.
D. If CONTRACTOR should subcontract all or any portion of the services to be performed under this Agreement, CONTRACTOR shall require each subcontractor/sub-consultant to provide insurance protection, as an additional insured, to the CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of this section, except that any required certificates and applicable endorsements shall be on file with CONTRACTOR and CITY prior to the commencement of any services by the subcontractor. CONTRACTOR and any subcontractor/sub-consultant shall establish additional insured status for CITY, its officers, officials, employees, agents and volunteers.
ARTICLE VIII. BUSINESS TAX CERTIFICATE
CONTRACTOR and all subcontractors shall obtain a City of Grover Beach Business Tax Certificate and pay all related fees prior to the start of work.
ARTICLE IX. NONDISCRIMINATION
To the extent required by controlling federal, state and local law, CONTRACTOR shall not employ discriminatory practices in the provision of services, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject to the foregoing and during the performance of this Agreement, CONTRACTOR agrees as follows:
A. CONTRACTOR will comply with all applicable laws and regulations providing that no person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement.
B. CONTRACTOR will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. CONTRACTOR shall ensure that applicants are employed, and the employees are treated during employment, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. Such requirement shall apply to CONTRACTOR’S employment practices including, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this nondiscrimination clause.
C. CONTRACTOR will, in all solicitations or advertisements for employees placed by or on behalf of CONTRACTOR in pursuit hereof, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.
D. CONTRACTOR will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising such labor union or workers' representatives of CONTRACTOR’S commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
E. If CONTRACTOR should subcontract all or any portion of the services to be performed under this Agreement, CONTRACTOR shall cause each subcontractor to also comply with the requirements of this Article (IX).
ARTICLE X. INDEPENDENT CONTRACTOR
A. In the furnishing of the services provided for herein, CONTRACTOR is acting solely as an independent contractor. Neither CONTRACTOR, nor any of its officers, agents or employees shall be deemed an officer, agent, employee, joint venture, partner or associate of CITY for any purpose. CITY shall have no right to control or supervise or direct the manner or method by which CONTRACTOR shall perform its work and functions. However, CITY shall retain the right to administer this Agreement so as to verify that CONTRACTOR is performing its obligations in accordance with the terms and conditions thereof.
B. This Agreement is not evidence of a partnership or joint venture between CONTRACTOR and CITY.
CONTRACTOR shall have no authority to bind CITY absent CITY’S express written consent. Except to the extent otherwise provided in this Agreement, CONTRACTOR shall bear its own costs and expenses in pursuit thereof.
C. Because of its status as an independent contractor, CONTRACTOR and its officers, agents and employees shall have absolutely no right to employment rights and benefits available to CITY employees. CONTRACTOR shall be solely liable and responsible for all payroll and tax withholding and for providing to, or on behalf of, its employees all employee benefits including, without limitation, health, welfare and retirement benefits. In addition, together with its other obligations under this Agreement, CONTRACTOR shall be solely responsible, indemnify, defend and save CITY harmless from all matters relating to employment and tax withholding for and payment of CONTRACTOR'S employees, including, without limitation:
(i) Compliance with Social Security and unemployment insurance withholding, payment of workers’ compensation benefits, and all other laws and regulations governing matters of employee withholding, taxes and payment; and
(ii) Any claim of right or interest in CITY employment benefits, entitlements, programs and/or funds offered employees of CITY whether arising by reason of any common law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the term of this Agreement, CONTRACTOR may be providing services to others unrelated to CITY or to this
Agreement.
ARTICLE XI. NOTICES
All notices, including notices of address changes, required to be sent hereunder shall be in writing and shall be deemed to have been given when mailed to the addresses listed below:
A. CITY: City of Grover Beach, Gregory A. Ray, Director of Public Works 154 South Eighth Street, Grover Beach, CA 93433
B. CONTRACTOR: Apodaca Paving Inc., Mailing Address: P.O. Box 1 Grover Beach, CA 93433, Physical Address: 1021 Huston Street, Grover Beach, CA 93433
ARTICLE XII. BINDING
Subject to Article XIII, below, once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each parties' respective heirs, successors, assigns, transferees, agents, servants, employees and representatives.
ARTICLE XIII. ASSIGNMENT
A. This Agreement is personal to CONTRACTOR and there shall be no assignment by CONTRACTOR of its rights or obligations under this Agreement without the prior written approval of the Grover Beach City Council. Any attempted assignment by CONTRACTOR, its successors or assigns, shall be null and void unless approved by the Grover Beach City Council.
B. CONTRACTOR hereby agrees not to assign the payment of any monies due CONTRACTOR from CITY under the terms of this Agreement to any other individual(s), corporation(s) or entity(ies). CITY retains the right to pay any and all monies due CONTRACTOR directly to CONTRACTOR.
ARTICLE XIV. COMPLIANCE THE LAW
In providing the services required under this Agreement, CONTRACTOR shall at all times comply with all applicable laws of the United States, the State of California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
ARTICLE XV. WAIVER
The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
ARTICLE XVI. GOVERNING LAW AND VENUE
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Luis Obispo County, California.
ARTICLE XVII. HEADINGS
The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of the provisions of this Agreement.
ARTICLE XVIII. SEVERABILITY
The provisions of this Agreement are severable. The invalidity, or unenforceability of any one provision in this Agreement shall not affect the other provisions.
ARTICLE XIX. INTERPRETATION
The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
ARTICLE XX. ATTORNEY’S FEES
If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses.
ARTICLE XXI. EXHIBITS
Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement
ARTICLE XXII. PRECEDENCE OF DOCUMENTS
In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or Attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void.
ARTICLE XXIII. CUMULATIVE REMEDIES
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
ARTICLE XXIV. NO THIRD-PARTY BENEFICIARIES
The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
ARTICLE XXV. EXTENT OF AGREEMENT
Each party acknowledges that they have read and fully understand the contents of this Agreement and any documents issued that resulted in selection of CONTRACTOR for entry into this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersede all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both CITY and CONTRACTOR.
AGREEMENT SIGNATURES
CITY OF GROVER BEACH, CALIFORNIA
CONSTRUCTION SERVICES
MAJOR STREET PAVEMENT REPAIR PROJECT
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement effective as of the day and year first written above.
CITY OF GROVER BEACH
Karen Bright, Mayor Date
Attest:
Wendi Sims, City Clerk Date
Approved as to Form:
David P. Hale, City Attorney Date
APODACA PAVING INC.
Marc Apodaca, Vice President Date
CA Contractor’s License No.
CA DIR No.
Attachments:
1. Exhibit A - Scope of Services and Fee Schedule
2. Exhibit B - Insurance Requirements
EXHIBIT A
CONSTRUCTION SERVICES
CONTRACTOR SCOPE OF WORK
C i t y o f G r o v e r B e a c h
DEPARTMENT OF PUBLIC WORKS
154 S. 8th Street ❖Grover Beach, CA 93433 ❖805/473-4530 ❖[email protected] Visit our website at www.groverbeach.org
REQUEST FOR QUOTATION
DATE: June 15, 2023
SUBJECT: MAJOR STREET PAVEMENT REPAIRS
The City of Grover Beach is requesting quotes from qualified Contractors to perform pavement repairs on major City roadways. See Exhibit A for approximate locations of the repairs.
TIME AND PLACE FOR SUBMISSION
QUOTES WILL BE CONSIDERED IF RECEIVED VIA E-MAIL BY 2:00 P.M. ON THURSDAY, JUNE 29TH, 2023.
City of Grover Beach Attn: Gabriel Munoz-Morris
154 S. 8th Street, Phone: (805) 473-4536
Grover Beach, CA 93433 Email: [email protected]
• THE JOB IS PREVAILING WAGE.
• CONTRACTOR MUST POSSESS A CLASS CONTRACTOR’S LICENSE. • CONTRACTOR SHALL OBTAIN AND MAINTAIN DURING THE PERFORMANCE OF
CONSTRUCTION INSURANCE COVERAGE CERTIFICATE OF LIABILTIY INSURANCE WITH AT LEAST $2 MILLION IN GENERAL LIABILITY COVERAGE AND A GC 2012 ADDITIONAL INSURED ENDORESMENT
• CONTRACTOR MUST HAVE WORKERS’ COMPENSATION INSURANCE. • CONTRACTOR MUST POSSESS/OBTAIN A CITY OF GROVER BEACH BUSINESS TAX CERTIFICATE UPON AWARD OF CONTRACT.
• CONTRACTOR SHALL BE ISSUED A NO-FEE ENCROACHMENT PERMIT FROM THE PUBLIC WORKS DEPARTMENT PRIOR TO COMMENCEMENT OF WORK. • CONTRACTOR SHALL MAINTAIN ALL ROADWAYS OPEN DURING THE DURATION OF WORK. NO ROAD CLOSURES SHALL BE PERMITTED.
C i t y o f G r o v e r B e a c h
DEPARTMENT OF PUBLIC WORKS
154 S. 8th Street ❖Grover Beach, CA 93433 ❖805/473-4530 ❖[email protected] Visit our website at www.groverbeach.org
City of Grover Beach Major Roadway Pavement Repairs
SCOPE OF WORK:
The City of Grover Beach is looking to contract major roadway repairs along West Grand Avenue, South Oak Park Boulevard, and The Pike. Additional as-needed work is also included for El Camino Real. The work will require traffic control at all times for all roadways. Traffic striping shall be restored for all areas in which it is disturbed/removed. It is estimated that 10 traffic loops will be impacted by the pavement repair work and will require restoration. No roadway closures are permitted at any time. Please see Exhibit A for the approximate locations of the pavement repairs. The exhibit was prepared after a site walk by City staff but the limits of work shown are approximate.
Contractors are encouraged to perform their own site walk to confirm field conditions. A mandatory site walk will be conducted with the awarded contractor prior to work commencement. Exact pavement repair areas will be marked with paint by the contractor at that time once agreed to by the City and the contractor.
PRE-BID JOB SITE WALK
There will be no pre-bid site walk for this project.
WORK PERIOD:
The work shall be completed within TEN (10) working days. Work shall generally be performed between the hours of 8 a.m. and 5 p.m. on weekdays, excluding City observed Holidays. At the Contractor’s request, the City may allow work on evenings and weekends that fall within the 10 working day period in order to facilitate completion of the work within the allotted time and minimize disruption to residents and businesses. No evening, weekend, or holiday work will be allowed without prior written approval by the Public Works Director/City Engineer, or his designee.
COMPENSATION
For all services which the Contractor has agreed to perform, the City of Grover Beach shall pay to the Contractor in accordance with the Contractor’s submitted bid pricing and any negotiated changes or additional work agreed upon after award of the contract.
The City reserves the right to delete any portion of the work described prior to the beginning of the work and the Contractor shall not be compensated for that work.
METHOD AND CRITERIA FOR SELECTION
Quotes from a responsive and responsible contractor shall be received and evaluated. The contractor that submits the lowest priced quote shall be selected for the project.
West Grand Avenue at 4th Street
West Grand Avenue between 8th Street and 9th Street
West Grand Avenue between 9
th Street and 10th Street
West Grand Avenue between 10th Street and 11
th Street
West Grand Avenue between 11
th Street and 12th Street
West Grand Avenue between 12
th Street and 13th Street
West Grand Avenue between 13
th Street and 14th Street
West Grand Avenue between 14
th Street and McDonalds
West Grand Avenue between McDonalds and 16th Street
West Grand Avenue between 16th Street and Oak Park Boulevard South Oak Park Boulevard between Capistrano Ct. and The Pike The Pike between 18th Street and 19th Street – City of GB ROW – North side of street
EXHIBIT B
CONSTRUCTION SERVICES
INSURANCE REQUIREMENTS
Without limiting CONTRACTOR’S indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR’S employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a CONTRACTOR’S Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage
for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
Other provisions or requirements
Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by CONTRACTOR shall be primary and any insurance or selfinsurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’S own insurance or self-insurance shall be called upon to protect it as a named insured.
Products/completed operations coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The AGENCY, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.
CITY’S rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’S Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any crossliability exclusions.
Pass through clause. CONTRACTOR agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONTRACTOR, provide the same minimum insurance coverage and endorsements required of CONTRACTOR.
CONTRACTOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONTRACTOR agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.
CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONTRACTOR ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and Consultant may renegotiate CONTRACTOR’S compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’S performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Karla Mattocks, Management Analyst/Human Resources SUBJECT: Resolution to Establish the Job Classification and Salary Schedule of Community Services Supervisor and Remove Job Classification of Parks and Recreation Program Director
RECOMMENDATION
Adopt the Resolution to establish the job classification and set the salary schedule of Community Services Supervisor and remove classification of Parks and Recreation Program Director.
BACKGROUND
The City recently reviewed the structure and staffing of the Parks and Recreation Department as part of a citywide organizational assessment and upon the retirement of the previous department director. After assessing the department’s work program and needs, staff believes that the City’s needs would be better met by incorporating the three-person Parks and Recreation function as a program of the City Management Department. This program would also be retitled as “Community Services” given the heavy programmatic focus on community events and activities. Park facilities would continue to be maintained by the Public Works Department and the Parks, Recreation, and Beautification Commission would continue as an advisory body to the City Council with staff coordination by the City Management Department.
Related to this organizational change is a recommended reclassification of the vacant Parks and Recreation Program Director position to Community Services Supervisor, which will better align with the operational needs of the program. This position, which will report to the Deputy City Manager, will have greater capacity to develop a Parks Master Plan, develop a fee study to assess parks facility rental and recreational program fees, develop a robust and organized volunteer program, coordinate with neighboring cities on recreational program offerings and to provide higher-level special event planning and coordination. The position will oversee the existing Recreation Coordinator (which will be retitled as Community Services Coordinator) and Administrative Assistant positions.
The Community Services Supervisor will have the expertise and skills necessary to design and execute engaging activities, ensuring that our community programs remain relevant, enjoyable, and responsive to the evolving needs of the community. This role will assist the City in delivering high-quality programs and events for our residents and others to enjoy. Salary research has been conducted to establish the pay range based on similar positions within comparable cities and the following salary schedule has been established:
Section 2 - Management & Confidential A B C D E F
Community Services Supervisor * 6,065 6,368 6,687 7,021 7,372 7,741 Staff Report: Establish Job Classification of Community Services Supervisor Page 2 July 24, 2023
Pending Council approval of this new job classification, staff will begin recruiting for this vacant position in order to fill the position by the fall. In the interim, the Deputy City Manager is overseeing this program with a near-term focus on finishing the implementation of the Summer Concert Series and planning for upcoming holiday events.
FISCAL IMPACT
The recommended action will result in estimated General Fund cost savings of approximately $50,000 given the change in position level from Director to Supervisor. The budget for this program will be brought into the City Management Department later this fiscal year as part of the implementation of the new Enterprise Resource Planning system.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution to establish the job classification and set the salary schedule of Community Services Supervisor and remove classification of Parks and Recreation Program Director; or
2. Do not adopt the Resolution; or
3. Provide alternate direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution No. 23- Resolution adding the job classification and setting the salary schedule of Community Services Supervisor and removing the job classification of Parks and Recreation Program Director.
Exhibit A – Job Classification Community Services Supervisor Exhibit B – Salary Schedule Community Services Supervisor Attachment 1
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, TO ESTABLISH THE JOB CLASSIFICATION AND SALARY
SCHEDULE OF COMMUNITY SERVICES SUPERVISOR AND REMOVE JOB CLASSIFICATION OF PARKS AND RECREATION PROGRAM DIRECTOR.
WHEREAS, the representatives of the City propose to add the Job Classification of Community Services Supervisor (Exhibit A) and set the Salary Schedule (Exhibit B), and remove the Job Classification of Parks and Recreation Program Director:
NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES DELARE, DETERMINE, AND ORDER AS FOLLOWS:
That the City Council of the City of Grover Beach does hereby adopt this Resolution ratifying the above-referenced job classification.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 24TH day of July, 2023.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
**DRAFT**
FLSA:EXEMPT Exhibit A
CITY OF GROVER BEACH
COMMUNITY SERVICES SUPERVISOR
DEFINITION:
Under general supervision develops, organizes, plans, coordinates, implements and markets quality recreational and leisure programs, including recreation classes, early childhood enrichment programs, youth camps, adult and youth sports, senior programs, and special events; assists with the training and supervision of staff, volunteers, temporary, contract, and/or part-time personnel; performs other related duties as required.
DISTINGUISHING CHARACTERISTICS:
The Community Services Supervisor is the first line supervisory level classification which supervises and assigns the work of subordinate employees, contractors, and volunteers. The incumbent provides general guidance to one or more City recreation-related programs and activities involving children, teens, adults, and seniors.
SUPERVISION RECEIVED/EXERCISED:
Receives general supervision from the City Manager’s Office. Exercises functional or technical supervision over full time, volunteer, seasonal, temporary, contract, and/or part-time personnel.
ESSENTIAL FUNCTIONS: (include but are not limited to the following):
• Plan, coordinate and implement special events; develop and facilitate new community services and recreation programs; schedule activities and programs; recommend improvements and modifications. • Develop goals and objectives for assigned services and programs; develop and implement policies and procedures including standard operating procedures for assigned operations. • Plan, organize, direct, and coordinate the work of assigned personnel; delegate authority and responsibilities; supervise, train, and evaluate staff; monitor activities and identify opportunities for improving service delivery and procedures, provide recommendations concerning process changes. • Produce and develop catalog of events and activities; prepare news releases and marketing materials for events and programs.
• Participates in annual budget preparation and administration; identify resource needs; prepare detailed cost estimates with appropriate justifications for budget recommendations, monitor and control expenditures.
Class specifications are only intended to present a descriptive summary of the range of duties and responsibilities associated with specified positions. Therefore, specifications may not include all duties performed by individuals within a classification.
In addition, specifications are intended to outline the minimum qualifications necessary for entry into the class and do not necessarily convey the qualifications of incumbents within the position. • Participate in the development and implementation of master plans and cost recovery models. • Develop and implement a volunteer program to recruit, assign and manage volunteers for special events and recreation programs.
• Develop and implement a parks private donation program. • Prepare and present staff reports and other written materials; supervise the establishment and maintenance of reports, records and files to ensure the proper documentation of operations and activities; maintain files, databases, and records related to recreation programs, services and events; prepare a variety of written reports, memoranda, and correspondence. • Answer questions and provide information to the public, investigate and respond to complaints and inquiries from citizens, other departments, and outside agencies; recommend corrective actions to resolve issues.
• Maintain and facilitate public relations and cooperative working relationships with schools, local organizations, and the public; provide educational presentations to groups; serve on boards and committees.
• Represents the City in meetings with members of other public and private organizations, community groups, contractors, developers, and the public.
PHYSICAL, MENTAL AND ENVIRONMENTAL WORKING CONDITIONS:
Position requires prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting, and stooping in the performance of daily activities. The position also requires grasping, repetitive hand movement, and fine coordination in keeping records and preparing reports using a computer keyboard and/or calculator. Additionally, the position requires near and far vision in reading written reports and workrelated documents. Hearing sufficient to provide telephone and personal service is required. The nature of the work may require the incumbent to work outdoors and lift equipment and materials weighing up to 25 pounds.
QUALIFICATIONS: (The following are minimal qualifications necessary for entry into the classification.)
Education and/or Experience:
Any combination of education and experience that has provided the knowledge, skills, and abilities necessary for a Community Services Supervisor. Typically, a Community Services Supervisor would possess the equivalent of three years of experience implementing recreation programs or events, including one year of supervisory or lead experience.
Equivalent to a bachelor’s degree from an accredited college or university with major course work in public administration, business administration, recreation and leisure studies or a related field is preferred. Relevant work experience may be substituted for the required education on a year for year basis.
License/Certificate:
Possession of, or ability to obtain, a valid Class C California driver’s license prior to appointment.
Possession of American Red Cross CPR and First Aid certification within six months of appointment is required.
KNOWLEDGE/ABILITIES/SKILLS: (The following are a representative sample of the KAS’s necessary to perform essential duties of the position.) Knowledge of:
Principles, philosophies, and practices of recreation administration; marketing and promotional materials; equipment used and field preparation for team sports; recreation philosophy, planning, and administration; budget development and implementation; facilities, operations, and techniques used in a comprehensive community recreation programs; methods and techniques of supervising volunteer, seasonal, part-time, and/or contractual staff; basic principles of mathematics; applicable federal, state and local laws, codes, and regulations related to assigned recreation projects and programs; rules, regulations, and policies affecting and related to recreation projects and programs; methods and techniques of scheduling work assignments; standard office procedures, practices, and equipment; modern office equipment, including a computer and applicable software; methods and techniques for record keeping and report preparation and writing; proper English, spelling, and grammar; occupational hazards and standard safety practices.
Ability to:
Plan, organize, direct and coordinate activities of assigned personnel; supervise train and evaluate staff; develop, coordinate, and direct varied activities involved in a community recreation program; create marketing and promotional materials; oversee assigned program budgets; work flexible hours; analyze recreational program issues, and develop and recommend appropriate responses; learn more complex principles, practices, techniques, and regulations pertaining to assigned duties; implement, explain, and apply applicable laws, codes, and regulations related to recreational program assignments; plan and lead the work of temporary paid staff and volunteers; read, interpret, and record data accurately; organize, prioritize, and follow-up on work assignments; work independently and as part of a team; make sound decisions within established guidelines; analyze a complex issue, and develop and implement an appropriate response; follow written, and oral directions; observe safety principles and work in a safe manner; enforce safety rules relating to assigned recreational events; communicate clearly and concisely, both orally and in writing; establish and maintain effective working relationships.
Skill to:
Operate standard recreation tools and equipment; operate an office computer and a variety of word processing and software applications.
Approved & Adopted:
Signature:
Management Analyst/Human
Resources
Date:
Signature:
City
Manager
Date:
Exhibit B
City of Grover Beach
STAFFING DETAIL & SALARY SCHEDULE
Community Services Supervisor
Compensation Plan - Monthly Salary
Ranges
Proposed Salary Schedule
Section 2 - Management & Confidential A B C D E F
Community Services Supervisor * 6,065 6,368 6,687 7,021 7,372 7,741 Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: John Peters, Chief of Police
SUBJECT: 2024 Federal Equitable Sharing Agreement
RECOMMENDATION
Adopt the Resolution authorizing the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement that will allow the City to receive federally forfeited assets from adjudicated cases, pursuant to the Federal Equitable Sharing Program.
BACKGROUND
The City of Grover Beach is a participating agency in the San Luis Obispo County Special Operations Unit (SOU), a multi-agency narcotics task force coordinated by the Sheriff’s Office of San Luis Obispo County. As a result of our participation, the City has the opportunity to receive federally forfeited funds including equipment purchased with such funds from the SOU. However, in order to receive such assets, the City needs to have the Federal Equitable Sharing Agreement on file with the Department of Justice and the Department of the Treasury. Typically, any forfeited assets have been and will continue to be maintained and used by the County’s SOU as determined by the Sheriff’s Office.
In addition to being a participating agency with the SOU, the Police Department also conducts street-level narcotics investigations. Some of the investigations conducted by SOU and GBPD may result in the seizure of assets (cash and/or property) that could be determined to be the proceeds of illegal drug transactions or used in the furtherance of such transactions. These drug assets may be seized under state or federal law. If the assets are proved to be drug-related, they are subject to forfeiture by a court of law. Once deemed legally forfeited, the assets may be available to be shared with agencies that were involved in the original investigation.
There are strict guidelines under both state and federal law governing the use of forfeited assets by cities and counties. These assets must be used for law enforcement purposes to supplement the regular budget “above and beyond” those items that are normally or already budgeted for.
There are strict prohibitions against supplanting General Fund allocations with forfeited funds.
The use of forfeited assets is a very cost-effective way to further our public safety goals without impacting the General Fund.
If a drug asset is forfeited under federal law, the responsible federal agency is not able to transfer that asset to local law enforcement agencies involved in the case without a signed Federal Equitable Sharing Agreement on file with both the Department of Justice and the Department of the Treasury. This agreement states that the City will comply with the following conditions upon receipt of a federally forfeited asset:
Staff Report: Federal Equitable Sharing Agreement Page 2 July 24, 2023
1. The forfeited funds will not be commingled with funds from other sources and will be accounted for using a separate revenue account or accounting code.
2. Interest earned on federally forfeited assets must be accounted for in the same account as the forfeited assets.
3. The forfeited funds will be subject to all standard accounting requirements as well as to specific requirements for federally forfeited funds.
4. The City (via the Police Department) will submit annual Certification Reports to the Department of Justice and the Department of the Treasury accounting for the shared federal funds.
The Police Department will be responsible for ensuring the City’s compliance with the agreement, including the annual reporting. Staff will work with the Administrative Services Department regarding the accounting aspects of the agreement to ensure the forfeited funds and earned interest are tracked separately from other funds and utilized in accordance with federal law. The Federal Equitable Sharing Agreement each year requires the signatures of both the head of the Governing Body for the City and the Chief of Police.
FISCAL IMPACT
The City generally does not receive federally forfeited funds though approval of the recommended agreement is necessary if such funds are shared with the Police Department. If this occurs, the funds will benefit the City for one-time allocations such as equipment purchases or training. There will be a minimum amount of staff time needed within the Police Department to ensure proper accounting of the funds and compliance with the sharing agreement.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution authorizing the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement that will allow the City to receive federally forfeited assets from adjudicated narcotics cases, pursuant to the Federal Equitable Sharing Program.
2. Do not adopt the Resolution authorizing the Mayor and the Chief of Police to sign the sharing agreement and thus the City will not be eligible to receive federally forfeited assets from investigations Police Department personnel were involved in.
3. Provide direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution No. 23-
2. Draft Federal Equitable Sharing Agreement
Attachment 1
RESOLUTION NO. 23-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA AUTHORIZING THE MAYOR AND THE CHIEF OF POLICE TO
SIGN A FEDERAL EQUITABLE SHARING AGREEMENT
WHEREAS, each year the City of Grover Beach is required to submit a Federal Equitable Sharing Agreement in order to receive federally forfeited funds or assets; and WHEREAS, the Agreement sets forth the requirements for participation in the Federal Equitable Sharing Program; and
WHEREAS, the Agreement must be signed by the head of the Governing Body for the City and the Chief of Police; and
WHEREAS, any shared asset shall be used for law enforcement purposes in accordance with the statutes and guidelines that govern the Federal Equitable Sharing Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby authorize the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement.
On motion by ________________, second 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 24th day of July, 2023. ** D R A F T **
___________________________________
KAREN BRIGHT, MAYOR
ATTEST:
______________________________
WENDI SIMS, CITY CLERK
Equitable Sharing Agreement and Certification
OMB Number 1123-0011
Expires: December 31, 2024
Agency Name: Grover Beach Police Department
NCIC/ORI/Tracking Number: CA0400200
Mailing Address: 711 Rockaway Ave
Type: Police Department
FY End Date: 06/30/2023 Agency FY 2024 Budget: $7,378,410.00 Phone: 8054734507 Email:[email protected]
Name: Peters, John
ESAC Preparer
Phone: Email:
Name:
Jurisdiction Finance Contact
Agency Finance Contact
Phone:
Name: Peters, John
8054734507 Email:[email protected]
Purcell, Deanne
8054734550 [email protected]
Grover Beach, CA 93433
Beginning Equitable Sharing Fund Balance
Equitable Sharing Funds Received
Equitable Sharing Funds Received from Other Law Enforcement Agencies and Task Force
Other Income
Interest Income
Total Equitable Sharing Funds Received (total of lines 2-5) Equitable Sharing Funds Spent (total of lines a - n)
Ending Equitable Sharing Funds Balance
(difference between line 7 and the sum of lines 1 and 6) Summary of Equitable Sharing Activity Justice Funds Treasury Funds $0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
1 2
3 4
5 6
7 8
Summary of Shared Funds Spent
Law Enforcement Operations and Investigations
Law Enforcement, Public Safety, and Detention Facilities Training and Education
Law Enforcement Equipment
Joint Law Enforcement/Public Safety Equipment and Operations Contracts for Services
Law Enforcement Travel and Per Diem
Law Enforcement Awards and Memorials
Drug, Gang, and Other Education or Awareness Programs
Matching Grants
Transfers to Other Participating Law Enforcement Agencies Support of Community-Based Programs
Non-Categorized Expenditures
Salaries
Total
Justice Funds Treasury Funds
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
a
b
c
d
e
f
g
h
i
j
k
l
m
n
Department of Justice Asset Forfeiture Program Investigative Agency participants are: FBI, DEA, ATF, USPIS, USDA, DCIS, DSS, and FDA Department of the Treasury Asset Forfeiture Program participants are: IRS-CI, ICE, CBP and USSS. 1 2
1 2
Annual Certification Report
Date Printed: 07/03/2023 Page 1 of 5
Attachment 2
Equitable Sharing Funds Received From Other Agencies
Transferring Agency Name Justice Funds Treasury Funds
Other Income
Other Income Type Justice Funds Treasury Funds
Matching Grants
Matching Grant Name Justice Funds Treasury Funds
Transfers to Other Participating Law Enforcement Agencies Receiving Agency Name Justice Funds Treasury Funds
Support of Community-Based Programs
Recipient Justice Funds
Non-Categorized Expenditures
Description Justice Funds Treasury Funds
Salaries
Salary Type Justice Funds Treasury Funds
Paperwork Reduction Act Notice
Under the Paperwork Reduction Act, a person is not required to respond to a collection of information unless it displays a valid OMB control number. We try to create accurate and easily understood forms that impose the least possible burden on you to complete. The estimated average time to complete this form is 30 minutes. If you have comments regarding the accuracy of this estimate, or suggestions for making this form simpler, please write to the Money Laundering and Asset Recovery Section at 1400 New York Avenue, N.W., Washington, DC 20005.
The Department of Justice is collecting this information for the purpose of reviewing your equitable sharing expenditures.
Providing this information is voluntary; however, the information is necessary for your agency to maintain Program compliance.
Information collected is covered by Department of Justice System of Records Notice, 71 Fed. Reg. 29170 (May 19, 2006), JMD-022 Department of Justice Consolidated Asset Tracking System (CATS). This information may be disclosed to contractors when necessary to accomplish an agency function, to law enforcement when there is a violation or potential violation of law, or in accordance with other published routine uses. For a complete list of routine uses, see the System of Records Notice as amended by subsequent publications.
Privacy Act Notice
Single Audit Information
Company:
Name:
Independent Auditor
Erin Nagle
Phone:
Glenn Burdette
8055441441 Email: [email protected]
Date Printed: 07/03/2023 Page 2 of 5
Were equitable sharing expenditures included on the Schedule of Expenditures of Federal Awards (SEFA) for the jurisdiction's Single Audit for the prior fiscal year? If the jurisdiction did not meet the threshold to have a Single Audit performed, select Threshold Not Met.
NO
Prior Year Single Audit Number Assigned by Federal Audit Clearinghouse: NA
YES X THRESHOLD NOT MET
Date Printed: 07/03/2023 Page 3 of 5
Under penalty of perjury, the undersigned officials certify that they have read and understand their obligations under the Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies (Guide) and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations. The undersigned officials certify that the information submitted on the Equitable Sharing Agreement and Certification form (ESAC) is an accurate accounting of funds received and spent by the Agency.
The undersigned certify that the Agency is in compliance with the applicable nondiscrimination requirements of the following laws and their Department of Justice implementing regulations: Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and the Age Discrimination Act of 1975 (42 U.S.C. § 6101 et seq.), which prohibit discrimination on the basis of race, color, national origin, disability, or age in any federally assisted program or activity, or on the basis of sex in any federally assisted education program or activity. The Agency agrees that it will comply with all federal statutes and regulations permitting federal investigators access to records and any other sources of information as may be necessary to determine compliance with civil rights and other applicable statutes and regulations.
Affidavit
Equitable Sharing Agreement
This Federal Equitable Sharing Agreement, entered into among (1) the Federal Government, (2) the Agency, and (3) the Agency's governing body, sets forth the requirements for participation in the federal Equitable Sharing Program and the restrictions upon the use of federally forfeited funds, property, and any interest earned thereon, which are equitably shared with participating law enforcement agencies. By submitting this form, the Agency agrees that it will be bound by the Guide and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations.
Submission of the ESAC is a prerequisite to receiving any funds or property through the Equitable Sharing Program.
1. Submission. The ESAC must be signed and electronically submitted within two months of the end of the Agency’s fiscal year. Electronic submission constitutes submission to the Department of Justice and the Department of the Treasury.
2. Signatories. The ESAC must be signed by the head of the Agency and the head of the governing body. Examples of Agency heads include police chief, sheriff, director, commissioner, superintendent, administrator, county attorney, district attorney, prosecuting attorney, state attorney, commonwealth attorney, and attorney general. The governing body head is the head of the agency that appropriates funding to the Agency. Examples of governing body heads include city manager, mayor, city council chairperson, county executive, county council chairperson, administrator, commissioner, and governor. The governing body head cannot be an official or employee of the Agency and must be from a separate entity.
3. Uses. Shared assets must be used for law enforcement purposes in accordance with the Guide and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations.
4. Transfers. Before the Agency transfers funds to other state or local law enforcement agencies, it must obtain written approval from the Department of Justice or Department of the Treasury. Transfers of tangible property are not permitted.
Agencies that transfer or receive equitable sharing funds must perform sub-recipient monitoring in accordance with the Code of Federal Regulations.
5. Internal Controls. The Agency agrees to account separately for federal equitable sharing funds received from the Department of Justice and the Department of the Treasury, funds from state and local forfeitures, joint law enforcement operations funds, and any other sources must not be commingled with federal equitable sharing funds.
The Agency certifies that equitable sharing funds are maintained by its jurisdiction and the funds are administrated in the same manner as the jurisdictions's appropriated or general funds. The Agency further certifies that the funds are subject to the standard accounting requirements and practices employed by the Agency's jurisdiction in accordance with the requirements set forth in the Guide, any subsequent updates, and the Code of Federal Regulations, including the requirement to maintain relevant documents and records for five years.
The misuse or misapplication of equitably shared funds or assets or supplantation of existing resources with shared funds or assets is prohibited. The Agency must follow its jurisdiction's procurement policies when expending equitably shared funds.
Failure to comply with any provision of the Guide, any subsequent updates, and the Code of Federal Regulations may subject the Agency to sanctions.
6. Single Audit Report and Other Reviews. Audits shall be conducted as provided by the Single Audit Act Amendments of 1996 and OMB Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards. The Agency must report its equitable sharing expenditures on the jurisdiction's Schedule of Expenditures of Federal Awards (SEFA) under Assistance Listing Number 16.922 for Department of Justice and 21.016 for Department of the Treasury. The Date Printed: 07/03/2023 Page 4 of 5
Yes No
Agency Head
Name:
Title:
Email:
Governing Body Head
Name:
Title:
Email:
To the best of my knowledge and belief, the Agency's current fiscal year budget reported on this ESAC is true and accurate and the Governing Body Head whose name appears above certifies that the agency's budget has not been supplanted as a result of receiving equitable sharing funds. Entry of the Governing Body Head name above indicates his/her agreement to abide by the policies and procedures set forth in the Guide, any subsequent updates, and the Code of Federal Regulations.
I certify that I have obtained approval from and I am authorized to submit this form on behalf of the Agency Head and the Governing Body Head.
X
Peters, John
Chief of Police
[email protected]
Bright, Karen
Mayor
[email protected]
Date:
To the best of my knowledge and belief, the information provided on this ESAC is true and accurate and has been reviewed and authorized by the Law Enforcement Agency Head whose name appears above. Entry of the Agency Head name above indicates his/her agreement to abide by the Guide, any subsequent updates, and the Code of Federal Regulations, including ensuring permissibility of expenditures and following all required procurement policies and procedures.
Signature: ___________________________________________________________ Date:
Department of Justice and the Department of the Treasury reserve the right to conduct audits or reviews.
7. Freedom of Information Act (FOIA). Information provided in this Document is subject to the FOIA requirements of the Department of Justice and the Department of the Treasury. Agencies must follow local release of information policies.
8. Waste, Fraud, or Abuse. An Agency or governing body is required to immediately notify the Department of Justice's Money Laundering and Asset Recovery Section and the Department of the Treasury's Executive Office for Asset Forfeiture of any allegations or theft, fraud, waste, or abuse involving federal equitable sharing funds.
During the past fiscal year: (1) has any court or administrative agency issued any finding, judgment, or determination that the Agency discriminated against any person or group in violation of any of the federal civil rights statutes listed above; or (2) has the Agency entered into any settlement agreement with respect to any complaint filed with a court or administrative agency alleging that the Agency discriminated against any person or group in violation of any of the federal civil rights statutes listed above?
Signature: ___________________________________________________________ ________________________________
________________________________
Civil Rights Cases
Date Printed: 07/03/2023 Page 5 of 5
Agenda Item No. 11
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: FY 2022-23 Year-End Council Goals Implementation Report
RECOMMENDATION
Receive information on the year-end implementation status of the Council Goals in FY 2022-23.
BACKGROUND
On March 8, 2021 the Council adopted a set of Council Goals for FY 2021-23 following a goalsetting workshop conducted by the Council on February 26, 2021. Those goals were updated by the Council at a Midyear Council Goals Workshop on March 7, 2022 for FY 2022-23 (see Attachment 1 – FY 2022-23 Council Goals). The City implemented Council’s policy direction including Council Goals with the resources established in the two-year FY 2021-23 budget.
As we begin the new fiscal year with updated FY 2023-25 Council Goals adopted in March 2023, it is worthwhile to report the implementation and progress over the past FY 2022-23 in addressing community needs. There was substantial progress made in implementing Council Goals as shown in Attachment 2. Overall, approximately 90% of the tasks for last fiscal year for the Major City Goals were completed or are currently in progress as shown in the chart below listed by goal:
Goal Completed In Progress Deferred* Total
Economic Development 6 6 1 13
Housing & Homelessness 6 2 - 8
Public Safety 3 - 1 4
Street Improvements 3 1 1 5
TOTAL 18 9 3 30
*Tasks shown as deferred will be implemented in the future.
Below are highlights of this progress categorized by each of the Major City Goals:
Economic Development
• Worked with SLO Partners on digital marketing workforce training. • Worked with the South County Chambers of Commerce to conduct regular Business Retention interviews with businesses and to increase the social media presence and website for the Visit Grover Beach tourism brand.
• Continued work with regional partners on regional economic development strategies. • Continued to work with Digital West/Astound to promote citywide high speed broadband services.
• Continued to work with developers on permits for hotels at 950 and 1598 El Camino Real, and on State Parks property (Grover Beach Lodge project) Staff Report: FY 2022-23 Council Goals Implementation Report Page 2 July 24, 2023
• Permitted four additional cannabis businesses and adopted an ordinance allowing onsite cannabis consumption at the permitted retailers.
• Continued to process development applications for mixed-use projects on West Grand Avenue and provided $75,000 in Small Business Façade Improvement grants to assist businesses with improvements to their buildings, signage and outdoor seating areas. • Advanced design of the West Grand Avenue streetscape project between 4th and 8th streets.
Housing and Homelessness
• Approved a four-story mixed-use building at 402 West Grand Avenue with 37 residential units and 4,700 square feet of commercial/retail space with construction anticipated to begin Summer 2023.
• Worked with developers on an application for a 60-unit mixed-use project at 401 West Grand Avenue and reviewed other mixed-use housing opportunities. • Worked with Peoples’ Self-Help Housing and HASLO on an application for a building permit for a housing project on South 13th Street (Cleaver property) • Supported development and opening of Cabins for Change homeless housing facility on 16th Street and Long Branch Avenue which became operational in January 2023 • Worked with 5CHC on site plans for a second homeless housing facility on the property on 4th Street and Barca with a goal of opening by the end of 2023. • Approved updated camping ordinance to restrict the scope of camping on public and private property.
• Implemented Development Code and Land Use Element updates to accelerate housing production and completed checklists, applications and website updates. • Initiated effort to assess eligibility for the “Pro-Housing Designation” from the State Department of Housing and Development.
Public Safety
• Continued to work with regional agencies to coordinate a unified approach by law enforcement agencies and others to address mental health issues in the unhoused community.
• Restructured Police Department staffing to operate with 2.5 Community Service Technicians to enhance non-sworn personnel.
• Worked with the Five Cities Fire Authority and the City of Arroyo Grande on service levels and governance changes for fire and emergency medical services including outside consultant review and adoption of new Joint Powers Authority agreement.
Street and Other Capital Improvements
• Completed Measure K-14 Street Improvement projects on portions of S. 7th Street, S. 10th Street, Manhattan Avenue, Seabright Avenue, Charles Street, N. 2nd Street and N. 6th Street.
• Completed 13 sidewalk infill projects associated with the Measure K-14 projects. • Design for the West Grand Avenue Streetscape project between 4th and 8th Streets is scheduled for completion in July 2023 with construction to begin in fall 2023.
In addition to these results tied to Major City Goals, staff would highlight various other achievements over the past year shown in Attachment 2 including:
• Continued to prepare construction documents for Phases 1 (playground and restrooms) and 2 (bandstand and amphitheater) of the Ramona Park improvements • Initiated a facility condition assessment of City facilities to determine long-term needs.
Staff Report: FY 2022-23 Council Goals Implementation Report Page 3 July 24, 2023
• Continued installation of wayfinding signs and added an “I(Heart)GB” sign at the Highway 1/West Grand Avenue entrance to the City.
• Resumed “Coffee with a Cop” community engagement events and initiated a community survey and community forum to provide opportunities for public input into the Council’s FY 2023-25 goal setting process.
• Continued work toward the Central Coast Blue recycled water project, including holding a joint meeting of the City Councils, approval of a Joint Powers Authority (JPA) Agreement and convening of the initial JPA Board meeting.
• Rescinded the Stage 3 Water Shortage Declaration, given improved water levels after winter rainfall.
On behalf of the City staff team, we are proud of these accomplishments over the past year. The investments made by the public over many years reflect this “can do” spirit of the community. Our team looks forward to continuing to meet the opportunities and challenges over this next year in continuing to serve our community and create an even better Grover Beach.
FISCAL IMPACT
There is no fiscal impact to this item.
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Receive information on the year-end implementation status of the Council Goals in FY 2022-23; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. FY 2022-23 Council Goals
2. FY 2022-23 Major City Goals Work Program Year-End Results
3. FY 2022-23 Other Important Goals Year-End Results
City of Grover Beach
FY 2021-23 City Council Goals
MAJOR CITY GOALS
ECONOMIC DEVELOPMENT. Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
HOUSING AND HOMELESSNESS. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.
PUBLIC SAFETY. Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
STREET IMPROVEMENTS. Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulb-outs, street trees and other related improvements.
OTHER IMPORTANT GOALS
BUILDING AND FACILITY IMPROVEMENTS. Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.
CITY BEAUTIFICATION AND PUBLIC ART. Enhance the appearance of the city by improving major entryways, ensuring high signage standards, preserving “legacy trees,” and partnering with the community to pursue new public art projects, such as murals.
COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in City government through programs, initiatives and events to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.
PEDESTRIAN, BICYCLE AND TRAFFIC SAFETY. Continue efforts to make Grover Beach more pedestrian and bicycle friendly by adding and/or enhancing bicycle lanes, sidewalks, street lights, street and crosswalk striping, and other traffic calming and safety measures.
ADDRESS AS RESOURCES PERMIT
ENVIRONMENTAL SUSTAINABILITY. Integrate environmentally sustainable principles, practices and projects into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Blue, Central Coast Community Energy and other technology opportunities to address and off-set climate impacts.
CODE COMPLIANCE. Continue to strengthen the code compliance program and related code sections to be more proactive in inspecting and addressing such issues as, short term rental violations, illegal advertising/business signage, overgrown landscaping and conflicting right-of-way encroachments; continue monitoring the cannabis industry.
RECREATION AND COMMUNITY PROGRAMS. Provide viable recreation, youth, childcare and special event programs designed to meet current and emerging needs, both directly and in partnership with other providers.
Attachment 1
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
ECONOMIC DEVELOPMENT
GOAL STATEMENT
Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
STAFF LEAD: Matthew Bronson, City Manager; Kristin Eriksson, Deputy City Manager; Megan Martin, Community Development Director
TASK PLANNED STATUS YEAR-END COMMENTS
Business Retention and Attraction
1. Work with Chamber to enable businesses to improve
their marketing through digital marketing bootcamps in
partnership with SLO Partners
2. Work with Chamber to conduct outreach with local
businesses on key issues facing Grover Beach businesses including periodic meetings and surveys
3. Continue to collaborate with regional partner agencies to identify economic development strategies to support the regional economy.
4. Work with Digital West to promote citywide fiber
broadband expansion as part of the Digital West
implementation
June 2023
July 2023
July 2022
September 2022
Completed
In Progress
Completed
Deferred
The City worked with SLO Partners on digital marketing
workforce training including two digital marketing
scholarships, two precision manufacturing scholarships, and one software development scholarship.
Business attraction work resumed after the hiring of a new Chamber CEO in the fall of 2022. The Chamber convened
periodic meetings with Grover Beach businesses along with a targeted outreach meeting with cannabis businesses.
The City has continued to work with REACH, Visit SLO Cal, the Cal Poly Center for Innovation and Entrepreneurship, and other groups on regional economic development strategies.
Digital West/Astound is installing its citywide high-speed fiber optic broadband network. The City will work with
Astound and the Chamber to promote broadband use from an economic development standpoint upon completion of the
installation by the end of 2023.
Attachment 2
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
ECONOMIC DEVELOPMENT
TASK PLANNED STATUS YEAR-END COMMENTS
Tourism Development
1. Begin oversight and construction management for hotel site at 950 El Camino Real
2. Process building permits for 1598 El Camino Real hotel project upon submittal by developer
3. Continue involvement in Grover Beach Lodge project in partnership with lead agency State Parks and issue City permits for initial offsite construction upon plan submittal and approval
4. Work with Chamber to enhance Visit Grover Beach
tourism marketing efforts to promote Grover Beach as a
desirable coastal destination for a variety of beach uses Commercial Cannabis Activities
1. Process development and building applications for
commercial cannabis businesses upon submittal
January 2023
January 2023
July 2023
July 2023
July 2023
In Progress
In Progress
In Progress
Completed
Completed
Review of construction plans were approved in Summer 2022.
Developer was issued a building permit in June 2023 with site mobilization and construction to begin in July 2023.
Staff approved a substantial conformance request in March 2023. Developer anticipates financing will be secured for an Summer 2023 building permit submittal on the first phase.
Developer submitted building plans to State Parks for review in December 2022. State Parks facilitated review of the plans between State Parks and the City with minor corrections to be submitted to the developer in July 2023.
The City worked with the Chamber to redefine their economic development services with a post-pandemic focus on tourism marketing. The City is working with the Chamber to increase the social media presence and website of the Visit Grover Beach tourism brand and to update the Visit Grover Beach website. The Chamber also worked with Visit SLO CAL to
increase the number of Grover Beach businesses featured in the SLO Crafted campaign.
City staff issued two new building permits for development of 35,000 square feet of anticipated commercial cannabis
processing along Huston Street. City staff anticipates
continuing to work with commercial cannabis businesses
looking to expand either through relocation from other
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
ECONOMIC DEVELOPMENT
TASK PLANNED STATUS YEAR-END COMMENTS
2. Process onsite consumption area applications upon
submittal by retailers pending adoption of ordinance
allowing use
West Grand Avenue Improvements
1. Process development applications for West Grand
Avenue housing and mixed-use projects upon submittal
by property owners
2. Pursue streetscape and other infrastructure improvements to improve the appearance and functionality of the
commercial corridor
3. Work with Chamber and businesses along West Grand
Avenue on outreach and marketing to enhance economic
vitality of the corridor
July 2023
July 2023
July 2023
July 2023
In Progress
Completed
Completed
In Progress
jurisdictions, or expanding existing businesses located in the City.
Council adopted an Ordinance to allow on-site cannabis
consumption areas and special events, and to revise the regulatory permit renewal process in May 2022. At this time, no cannabis retailers have submitted an application for an onsite consumption area, however, City staff will work with the commercial cannabis industry to bring consumption areas and special events to Grover Beach.
Several West Grand Avenue housing and mixed-use project applications were submitted for City review with staff
working with developers on other potential sites. Additionally, the City provided $75,000 in façade improvement grants to local businesses to improve their aesthetics.
West Grand Avenue Streetscape final project design was
presented to Council in June 2023 with construction expected to begin in Fall 2023.
The City held a community meeting in October of 2022 for businesses along West Grand Avenue between 3rd and 9th
Streets to provide information about the upcoming West
Grand Avenue streetscape project between 4th and 8th Streets.
The City will continue to work with the Chamber to
coordinate marketing efforts with the businesses along West Grand Avenue.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
ECONOMIC DEVELOPMENT
KEY POLICY/OPERATIONAL ISSUES
• Need for review into scope of services with the South County Chambers of Commerce as part of the City’s business retention, recruitment and marketing efforts
• Continue City’s involvement in regional economic development strategies to ensure community economic vitality in the future • Continue working with Astound/Digital West to maximize the potential of citywide fiber broadband expansion for attraction of businesses and residents • Continued focus on commercial cannabis industry and hotel development projects given economic activity and development opportunities along with additional tax revenues
• Provide greater focus on West Grand Avenue improvements given the level of development interest in housing and mixed-use projects MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
HOUSING AND HOMELESSNESS
GOAL STATEMENT
Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.
STAFF LEAD: Megan Martin, Community Development Director; Matthew Bronson, City Manager
TASK PLANNED STATUS YEAR-END COMMENTS
1. Process development applications for West Grand
Avenue housing and mixed-use projects upon submittal
by property owners
2. Oversee the start of the building permit process for the development of affordable housing project on South 13th Street (Cleaver property)
3. Work with 5Cities Homeless Coalition (5CHC) on the
development of a homeless housing facility on Cityowned property on South 4th Street
4. Continue to work with 5CHC and surrounding cities to increase the supply of supportive and transitional housing and programs to assist the homeless
5. Continue periodic homeless encampment outreach and
cleaning activities at affected locations
July 2022
July 2022
July 2022
July 2022
July 2022
Completed
In Progress
Completed
Completed
Completed
City approved a four-story mixed-use building at 402 West Grand Avenue with 37 residential units and 4,700 square feet of commercial/retail space with construction anticipated to begin Summer 2023. Staff is working with developers on an application for a 60-unit project at 401 West Grand Avenue.
Other mixed-use housing opportunities are in concept review.
PSHH/HASLO submitted an application for a building permit in December 2022. Staff returned corrections in January 2023 and continues to work with the applicant’s design team. 5CHC is working on site plans and grant funding to establish a homeless housing facility on City-owned property on South 4th Street with goal of opening by end of 2023.
Supported 5CHC in opening of Cabins for Change homeless housing facility in Grover Beach and supported efforts by County and other agencies to develop additional facilities.
City conducted several encampment cleanings in the El
Camino Real open space area. Council adopted an updated camping ordinance in March 2023 to restrict extent and scope of camping on public property.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
HOUSING AND HOMELESSNESS
TASK PLANNED STATUS YEAR-END COMMENTS
6. Receive Coastal Commission approval of the Local
Coastal Program amendments related to the Land Use
Element and Development Code updates
7. Implement Land Use Element and Development Code
updates including development of checklists, website
update, staff training and developer outreach
8. Apply for “Pro-Housing Designation” from State
Department of Housing and Development to assist with
securing State grant assistance
October 2022
October 2022
June 2023
Completed
Completed
In Progress
Commission approval was received in December 2022 which allows use of updated Development Code within Coastal Zone.
Development Code and Land Use Element updates were
adopted by Council in June 2022 with Coastal Commission approved for Coastal Zone areas in December 2022.
Checklists, applications, and other website updates have been completed. A developer outreach session is planned for 2024, to coincide with the roll-out of the new Enterprise Permitting and Licensing Software.
Staff has begun review of the pro-housing designation criteria to assess eligibility. Subject to meeting the minimum score requirement, staff will proceed with an application to secure the designation to assist with securing State grant assistance.
KEY POLICY/OPERATIONAL ISSUES
• Implementation of the updated Development Code and Land Use Element will be a major area of focus for FY 2022-23 particularly in encouraging multifamily, infill development along West Grand Avenue corridor. • Housing availability is a significant challenge throughout the region and the City has limitations in responding to this need given staffing and funding, as well as the extent to which local government can address the housing market. Changes in housing will take time given the work involved in the private sector housing production along with development of the People’s Self-Help Housing/HASLO affordable housing project on South 13th Street. • Homelessness is one of the most difficult issues facing local government and is an issue that extends beyond the role of cities in addressing it. The City continues to take a balanced approach of “compassion with order” by supporting creation of additional housing units and services along with taking actions to better secure and maintain public spaces. The opening of the Cabins for Change facility, development of a future facility on South 4th Street, and drafting of a camping ordinance are examples of the City’s proactive work.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
PUBLIC SAFETY
GOAL STATEMENT
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.
STAFF LEAD: John Peters, Chief of Police; Stephen Lieberman, Five Cities Fire Chief
TASK PLANNED STATUS YEAR-END COMMENTS
1. Continue exploration of more unified approach between public safety departments, County agencies, and
homeless service providers on outreach for homeless
individuals with mental health issues
2. Work with Five Cities Fire Authority member agencies on future service delivery and governance structure for fire and emergency medical services to implement
beginning July 1, 2023
3. Expand Police Department Community Services
Technician program through vacant position
reclassification to enhance the use of non-sworn
personnel on certain tasks
4. Enhance the City’s emergency management efforts
through updating the City’s Emergency Operations
Plans, implementing staff and Council training and
collaborating with other agencies on emergency
preparedness and response
July 2022
July 2022
October 2022
December 2022
Completed
Completed
Completed
Deferred
Police Department worked with the 5Cities Homeless
Coalition (5CHC) and local agencies to coordinate a unified approach to address mental health issues within the unhoused community. Chief Peters was on the countywide committee that recently completed the update to the countywide
homelessness strategic plan.
Staff worked with FCFA and Arroyo Grande staff on service level and governance changes for fire services including an outside consultant review. New Joint Powers Authority
Agreement approved by Council along with increased service levels and temporary service delivery to Oceano.
Police Department is operating with 2.5 Community Service Technicians through restructuring. Program has been
successful in alleviating some calls that officers were handling so they can concentrate on crime prevention and response.
Due to budgetary constraints, this project was not funded and a request for proposal was not completed.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
PUBLIC SAFETY
KEY POLICY/OPERATIONAL ISSUES
• Implementation of new service level and governance changes related to the Five Cities Fire Authority and future service delivery options with the County for Oceano.
• Need for coordination with other agencies on outreach services to those individuals with mental health issues and homelessness. • Need to bolster citywide emergency management and preparedness work. • Finding opportunities to expand Police Department services within existing budget allocation.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
STREET IMPROVEMENTS
GOAL STATEMENT
Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulb-outs, street trees and other related improvements.
STAFF LEAD: Greg Ray, Public Works Director/City Engineer; Erin Wiggin, Capital Improvement Projects Manager; Gabriel Munoz-Morris, Senior Engineer
TASK PLANNED STATUS YEAR-END COMMENTS
1. Complete application package to PG&E for the Street
Lighting Project (CIP 2003). The first phase is for North Oak Park Boulevard.
2. Complete construction of the sidewalk infill with the cost sharing program with the two Measure K-14 projects
(CIP 2295-14 and 2295-15) listed below (CIP 2274).
3. Complete design and begin construction of the West
Grand Avenue Streetscape project from 4th to 8th Streets (CIP 2287)
4. Complete design and begin construction of CIP 2295-14 (portions of Trouville, S. 7th Street, Ocean View Avenue, Nacimiento Avenue, Mono Court, Owens Court,
Margarita Avenue and Angello Terrace)
5. Complete design and begin construction of CIP 2295-15 (portions of S. 7th Street, S. 10th Street, Manhattan
Avenue, Seabright Avenue, Charles Street, N. 2nd Street and N. 6th Street)
July 2022
June 2023
January 2023
August 2023
February 2023
Deferred
Complete
In Progress
Completed
Completed
Project funding removed from FY 2022-23 and delayed to FY 2023-24.
A total of 13 residents participated in the sidewalk cost sharing program.
Design effort increased as a result of Council input on design elements. Design will be completed July 2023 and construction will start in fall 2023.
Construction completed in December 2022.
Design was completed in December 2022 and construction was completed in June 2023.
MAJOR CITY GOAL FY 2022-23 YEAR-END IMPLEMENTATION REPORT
STREET IMPROVEMENTS
KEY POLICY/OPERATIONAL ISSUES
• Continuing 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. • Improved funding availability for improving arterials and major streets given higher General Fund contribution for capital projects and an increase in Local Transportation Funds derived from Gas Taxes though additional funding is still needed given the extent of arterials and major streets that need repair. • Incorporating sidewalk infill, traffic calming, and other safety enhancements desired with street improvement work. • Need to plan for street maintenance work in future Capital Improvement Programs to maintain the City’s streets rehabilitated in recent years.
FY 2022-23 OTHER IMPORTANT COUNCIL GOALS
YEAR-END IMPLEMENTATION REPORT
BUILDING AND FACILITY IMPROVEMENTS. Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.
Key Actions:
• Completed the fire station upgrade project which included a complete kitchen remodel, new flooring and other improvements.
• Continued to prepare the construction documents for Phase 1 and Phase 2 of the Ramona Park improvements.
• Initiated facility condition needs assessment to review the condition of City facilities and identify long-term needs and capital improvements.
• Moved into temporary storage facility for extended size Police vehicles to free up space at the Police Station
CITY BEAUTIFICATION AND PUBLIC ART. Enhance the appearance of the City by improving major entryways, ensuring high signage standards, preserving “legacy trees”, and partnering with the community to pursue new public art projects, such as murals.
Key Actions:
• Continued to install visitor wayfinding signs at major intersections throughout the City. • Converted #GB60 sign at Highway 1 and West Grand Avenue to “I(Heart)GB” sign.
COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in City government through programs, initiatives and events to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.
Key Actions:
• Resumed quarterly “Coffee with a Cop” community engagement events at various locations in the City.
• Issued a community survey related to the Council goal-setting process in December 2022 and hosted a community forum in January 2023 to provide opportunities for the public to provide input into the Council’s goal setting process for FY 2023-25. • Developed a “GB101” video series highlighting City services and officials.
WATER RESILIENCY. Partner with communities throughout the South County to achieve sustainable water resources through initiatives such as the Central Coast Blue recycled water project as well as through water conservation efforts.
Key Actions:
• Held an inaugural joint meeting of the City Councils of Grover Beach, Pismo Beach and Arroyo Grande in September 2022 to update the Councils on the progress of the Central Coast Blue recycled water project with a subsequent joint meeting held in June 2023 on local hiring options. • Approved a Joint Powers Authority Agreement to create the Central Coast Blue Regional Recycled Water Authority and convened the initial Authority Board meeting in December 2022. • Declared a Stage 3 Water Shortage Declaration in September 2022 given drought conditions which led to a 20% reduction requirement in water usage with associated penalties but subsequently lifted this declaration in March 2023 and returned to voluntary conservation given winter rainfall.
Attachment 3
Agenda Item No. 12
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: Authorization to Submit Water Infrastructure Finance and Innovation Act (WIFIA) Application for Central Coast Blue Project and Incur Related Loan Application and Issuance Costs
RECOMMENDATION
Authorize staff to submit an application to the Environmental Protection Agency (EPA) for a Water Infrastructure Finance and Innovation Act (WIFIA) loan to fund the City’s share of Central Coast Blue project costs and incur related costs related to the application.
BACKGROUND
The City is a member of the Central Coast Blue Regional Recycled Water Authority which is a Joint Powers Authority (JPA) tasked with building and operating the Central Coast Blue recycled water facility. The total construction costs are currently estimated at $93 million of which $49 million would be paid by grants, leaving $44 million to be financed by Grover Beach, Pismo Beach and Arroyo Grande. Grover Beach’s share of CCB is 36% and therefore, after adding Grover Beach preconstruction payments of $2.5 million, the City would need to finance $18.3 million.
According to JPA consultant WSC, the State Revolving Fund (SRF) does not have funds available to finance the Central Coast Blue project costs. It was therefore decided by the JPA to seek financing from the EPA through the WIFIA Loan Program. A Letter of Interest was submitted to the EPA for the WIFIA Loan and after EPA approval, the JPA was invited to submit a full application for funding of CCB.
The WIFIA Loan is similar to the SRF program in that draws are made to fund construction of an eligible project until the project is completed. Once the project is completed, the drawn amounts are aggregated into a loan amount and amortization begins on the loan. This is a more costeffective form of financing than a traditional tax-exempt bond issue where a project amount is funded and then interest on the principal balance begins at closing. The WIFIA Loan rate is the published State and Local Government Securities (“SLGs”) rate published daily by the US Treasury, plus 1 basis point (.01), based upon the average life of the Loan. The WIFIA Loan is a 30-year Loan that starts amortizing once the Project is completed and therefore, the average life of the Loan is estimated to be 20 years. As of June 17th, the current SLGs rate for 20 years is
4.09% and therefore the WIFIA Loan rate would be 4.10%, which is subject to change.
The JPA agencies are seeking separate financing arrangements for each agency’s estimated project costs given the unique financing needs across communities. Arroyo Grande and Pismo Beach are applying together using their common financial advisor whereas Grover Beach is applying separately as the City has a prior Series 2020 Water Bond that must be taken into account when issuing the WIFIA Loan along with a defined financing team which has extensive WIFIA loan experience. Grover Beach would be applying as a “Small Community” because our Staff Report: Direction to submit WIFIA Loan Application Page 2 July 24, 2023
population is less than 25,000 with an application fee of $25,000. Once the EPA begins working on the Loan and engaging their outside legal counsel, they estimate that the total costs for the EPA portion of issuance costs would be approximately $150,000 on which the initial fee of $25,000 is applied towards. These costs once incurred by the EPA, are payable from the initial draw upon closing, but are not contingent upon the Loan closing and will be due and payable should the City decide not to proceed with the Loan for whatever reason. Other Loan costs include the City’s own consultants but, these are contingent and payable from the Loan once it closes.
Therefore, if the Loan does not close, these consultants will not be paid.
These costs will be provided once the EPA approves the Loan and Council is requested to approve the loan documents. An additional upfront fee is the Standard & Poor’s cost for their Rating Evaluation Service (“RES”). The WIFIA application requires a rating evaluation that the Loan would be investment grade (BBB- or higher). The fee for the RES is $28,000 and is applied toward the S&P Rating Fee of $35,000 which is the fee for the full rating once there is a Loan Agreement and Term Sheet.
Staff have been preparing the WIFIA Loan application with the City’s consultants and are seeking Council approval to submit the application with the fee of $25,000 along with the fee for the S & P Rating Evaluation Services of $28,000. This is just the initial step in the Loan process in order to proceed in a timely manner that would enable the City and the other JPA member agencies to begin funding construction costs in early 2024. The Council will ultimately have the authority to consider a WIFIA Loan Agreement provided by the EPA’s legal firm at the end of 2023 following consideration of updated utility rates to fund future water and wastewater needs. Following the presentation of utility rate study results on September 5 and subsequent action by the Council to issue Proposition 218 notices, the rate study would then be sent to S&P to start the RES process with payment of related fees.
FISCAL IMPACT
The initial $25,000 WIFIA application fee and $28,000 S&P RES fee will be paid for from Water Enterprise Reserves. The additional estimated costs of $125,000 for the EPA legal team for WIFIA Loan will be paid for from the first draw of the Loan; however, if the Loan does not close the Water Enterprise Reserves will need to pay this amount. Additional WIFIA Loan costs are contingent upon the closing and will be paid for from the Loan.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Authorize staff to submit an application to the EPA for a WIFIA Loan and appropriate $53,000 from Water Fund Reserves to pay costs related to the application of $25,000 and S&P Rating Evaluation Service of $28,000; or
2. Provide staff with alternative direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Agenda Item No. 13
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Kristin Bennet, Management Analyst
SUBJECT: Budget Augmentation Requests for Public Works Valve Truck, Valve Turning Machine and Associated Equipment
RECOMMENDATION
Approve Budget Augmentation Requests of $82,804.25 for Public Works Valve Truck, Valve Turning Machine, and Associated Equipment.
BACKGROUND
The Public Works Department’s current valve truck and valve turning machine have exceeded their useful lives and are in need of replacement. The existing valve turning machine is no longer supported by the manufacturer and staff has had to find ways to repair damaged parts in the past.
The existing valve truck cannot support a new valve machine and is due for replacement as well.
The valve truck is a critical Public Works piece of equipment used by maintenance staff for responding to a variety of Public Works emergencies and the valve turning machine is a critical piece of equipment to ensure the continued safe operation of the City’s drinking water supply system.
The FY 2022-23 budget included purchase of a new boom-lift vehicle for $75,000, but staff later identified the need for a replacement valve truck and valve turning machine as a more immediate need. Staff estimated that a new valve truck outfitted with a new valve turning machine and associated equipment could be purchased within this $75,000 allocation. However, due to increased vehicle and equipment prices over the last three years the cost to purchase a new valve truck and equip it with a valve turning machine and associated equipment that meets the City’s specifications is now $157,804.25. Staff purchased the truck and body at the end of FY 2022-23 for $79,829.72 and now needs to purchase the valve turning machine and power take-off unit to have the truck equipped this fiscal year. Pending Council approval, staff will appropriate additional funding of $4,832.72 needed for the purchase of the truck in the FY 2022-23 budget and an additional $77,974.53 in the FY 2023-24 budget for a total of $84,804.25 to finalize the equipment purchase.
FISCAL IMPACT
The truck purchase in FY 2022-23 exceeded the budget allocation by $4,829.72 and consequently staff is requesting approval of a budget augmentation request as part of the final accounting for FY 2022-23 of $4,829.72 from the General Fund. Staff is also requesting approval of a budget augmentation request for FY 2023-24 of $77,974.53 with $41,658.12 from the Water Enterprise Fund, $18,158.18 from the Wastewater Enterprise Fund, and $18,158.12 from the General Fund.
The valve turning machine itself will be funded from the Water Enterprise Fund as it is solely used Staff Report: Budget Augmentation Requests - Valve Truck Page 2 July 24, 2023
when working on water infrastructure and the remaining costs will be evenly split for other needed equipment and installation costs. Funding is available in the Water Enterprise Fund, Wastewater Enterprise Fund, and General Fund but staff will look for ways to reduce spending in FY 2023-24 to offset this purchase within the operating budget of the respective funds.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve Budget Augmentation Requests of $82,804.25 for Public Works valve truck, valve turning machine, and associated equipment; or
2. Do not approve the Budget Augmentation Requests; or
3. Provide staff with additional direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Agenda Item No. 14
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director SUBJECT: Regional Housing & Infrastructure Plan
RECOMMENDATION
1. Convey policy support for the Regional Housing & Infrastructure Plan, as a recommitment to the 2020 San Luis Obispo Countywide Regional Compact.
2. Provide staff with direction on future discussions relating to implementation of the Regional Housing & Infrastructure Plan.
BACKGROUND
Meeting the housing needs of the San Luis Obispo region is a challenge shared by all eight local jurisdictions (the seven cities and the County of San Luis Obispo), San Luis Obispo Council of Governments (SLOCOG), public and private organizations who develop and build housing, as well as local community members. This challenge is larger than any one entity can solve alone and will require the collective actions of all local partners. With this great challenge also comes an opportunity for regional collaboration. Regional partners have recognized the need to work collaboratively to solve the critical shortage of infrastructure resources and housing attainability in the region. Therefore, in 2019, the County allocated resources to launch a new regional collaborative initiative and all regional partners adopted the San Luis Obispo Countywide Regional Compact in early 2020 (see Appendix D), as discussed below. Since its inception, the Regional Housing & Infrastructure Plan (HIP) has been part of a phased approach intended to address three major goals:
1. Foster regional collaboration (action taken in 2020);
2. Align land use planning documents (action taken in 2020); and
3. Create the HIP (draft under review via today’s item).
The City Council completed the first two goals through adoption of the Countywide Regional Compact on March 2, 2020, and through adoption of the City’s 2020-2028 (6th Cycle) Housing Element Update on November 16, 2020. The Regional Compact includes a series of regional goals, consistent with the other participating jurisdictions, that seek to unlock potential for an adequate supply of housing and infrastructure that supports economic prosperity of the region.
Today’s recommended action along with actions in other jurisdictions signifies a recommitment to the Regional Compact by taking the next step in its implementation, creation of the HIP. The HIP is a collaborative action plan between the seven cities, the County, and SLOCOG in response to the San Luis Obispo region’s housing and infrastructure shortage. The HIP is intended to help accelerate housing development while considering regional conditions and community readiness.
The HIP creates an inventory of infrastructure priorities, studies housing affordability, and Staff Report: Regional Housing & Infrastructure Plan Page 2 July 24, 2023
develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA) and other future regional programs.
The Draft HIP (shown in Attachment 1) includes seven major components. These components are interrelated and build upon one another:
• HIP Component 1–Housing Highlights
A communication tool designed to unify the region’s focus on the challenges and successes that local agencies, the building and development community and other stakeholders face related to the housing supply needs. This document will serve to reinforce the commitment to the Regional Compact and expand on opportunities each stakeholder has to address housing needs within their area of control and span of influence. The draft Housing Highlight document is included as Appendix E to this report.
The final document will be included with the final HIP in July 2023. • HIP Component 2–Data and Project Inventory
The HIP analyzes the transportation, water and wastewater infrastructure barriers to housing development using infrastructure and housing data from across the individual agencies including housing, transportation, water/wastewater, and additional contextual data.
• HIP Component 3–HIP Mapping Tool
The HIP Mapping Tool was created to display the GIS analysis and foster future collaboration. It is an interactive tool, compiling the complex data and inventoried projects from across the region. The mapping tool makes it easier to visualize connections between infrastructure and housing, see project priorities, and quickly access more information about each community’s priority projects and housing efficient areas, within a regional context. This component is completed and included in the draft HIP. • HIP Component 4–Housing Efficiency Analysis
The Housing Efficiency Analysis looks at three efficiency factors: (1) transportation access, (2) water capacity and (3) wastewater capacity. By analyzing these efficiency factors, housing efficient areas were identified as efficient, potential or limited. Any infrastructure projects located in an area deemed “efficient” or “potential” moved on to the Infrastructure Prioritization element. All projects located in areas deemed “limited” housing efficiency were removed from further analysis. There were 440 infrastructure projects collected as part of the data inventory. Of those, 18% (80 projects) were located within “Housing Efficient Areas” which are areas deemed “efficient” or “potential.” This component is completed and included in the draft HIP.
• HIP Component 5–Infrastructure Prioritization
The central premise of the HIP is to help accelerate new housing development, so the current prioritization factors relate solely to the amount of proposed housing that benefits from a community’s infrastructure project. The 80 infrastructure projects located within Housing Efficient Areas were ranked as high, medium or low priority based on three factors:
(1) if the project is needed for new housing, (2) benefit/cost (i.e. investment cost per additional potential housing units served), and (3) whether there are significant barriers to development. This list of projects and the prioritization process will continue to be refined as part of the work to finalize the HIP.
Staff Report: Regional Housing & Infrastructure Plan Page 3 July 24, 2023
• HIP Component 6–Funding Strategies Assessment
SLOCOG contracted with BKF Engineers to conduct a Funding Strategies Assessment.
The Funding Strategies Assessment is currently underway and seeks to identify funding sources that would prioritize projects. This component is underway, but not completed.
The HIP’s Appendix C includes preliminary information; however, the draft assessment is expected in July 2023 will include a project-by-project detailed breakdown covering funding requirements, potential funding sources, projected grant funding, and residual funding gap. Local agencies will be encouraged to review the assessment and pursue funding opportunities for priority infrastructure projects in order to voluntarily contribute to the regional housing effort in a manner that best fits within their agency’s goals. • HIP Component 7–Affordable-by-Design Study
SLOCOG contracted with ECONorthwest to conduct the Affordable-by-Design (ABD) Study. The ABD Study is currently underway and will evaluate housing affordability characteristics for the seven Cities as well as unincorporated areas. The intent is to identify whether housing units in this region can be built to meet low to moderate income RHNA categories (as rentals or for-purchase) without being income- or rent-restricted. Initial findings include:
o Design helps but does not guarantee affordability.
o Market rate rental housing is close to affordability targets in some areas, but regulatory changes are necessary for most areas of the county. o Only manufactured housing met target price points for new for-sale housing. o Factors that make for-sale housing more affordable in other areas may not translate to this region’s current market.
The ABD Study notes that there are generally four factors that come together in the housing market to produce lower-cost housing, including: (1) simple design with lowercost materials, (2) lower cost locations, (3) efficient production, and (4) smaller units with higher density. Due to the limited findings of housing affordability, the ABD Study includes development of a simple menu of policy options that could help to incentivize ABD units in the region. This component is underway, but not completed. The HIP’s Appendix B includes preliminary information; however, the draft study is expected in July 2023.
Recognizing that there is no single solution to the challenge of affordability, the forthcoming menu of policy options will be provided for each local agency to consider. Local agencies will be encouraged to adopt what fits their community’s needs in order to voluntarily contribute to the regional housing effort in a manner that best fits within their agency’s goals.
The draft HIP is in alignment with the Major City Goals of Economic Development and Community Promotion and Housing and Homelessness in that the HIP promotes and encourages new development that helps to improve the balance of jobs and housing and promotes accessibly connected housing production and expansion of housing options:
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.
Staff Report: Regional Housing & Infrastructure Plan Page 4 July 24, 2023
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.
Additionally, the City’s 6th Cycle General Plan Housing Element includes the San Luis Obispo Countywide Regional Compact adopted by each jurisdiction in 2020 (Chapter 2 – Regional Vision for Housing). With adoption of the Housing Element in 2020 and subsequent Development Code updates in 2022, the City has taken numerous actions to accelerate housing production in Grover Beach including adoption of the City’s Accessory Dwelling Unit Ordinance, Fractional Density and State Density Bonus Ordinances, adoption of the City’s Objective Design Standards for Residential Single Family, Residential Multi-Family, and Mixed-Use projects, and established transitional housing regulations consistent with State law.
It is worth emphasizing that the HIP recognizes that there is no “one size fits all” when it comes to this region’s planning and that while local agencies plan for housing, the agencies do not build or develop housing themselves. Therefore, nothing in the HIP mandates action by any of the cities or the County but rather offers voluntary opportunities for action that could accelerate the development of needed housing in the region. HIP implementation relies on each agency’s voluntary actions moving forward, such as:
• Pursuing funding opportunities identified for a priority infrastructure project to cover funding gaps.
• Considering implementation of affordable-by-design policies appropriate to each unique community and its needs.
• Considering programmatic changes to improve approval process timelines such as directing staff to identify ways to improve response time for housing project approval or coordinating with other agencies to align and streamline processes. • Updating the analysis of prioritizing the community’s needed infrastructure projects in order to most impactfully increase housing supply.
• Using the HIP to help justify the benefit of a community’s priority infrastructure project towards increasing the region’s future housing supply, making it more competitive in a number of State and Federal funding programs.
• Using the HIP as a foundation for negotiating where the region’s housing needs are best met (e.g. future RHNA cycle allocations).
As stated before, the housing, infrastructure and economic challenges that the region faces are larger than any one entity can solve alone and will require the collective actions of all local partners. Since 2019, the region’s stakeholders have taken incremental steps to build a strategic, unified regional collaboration to address housing and infrastructure needs. The HIP is the first of its kind, and it is intended to be a living document. The HIP’s future implementation and use are wholly dependent on the voluntary actions of many–the seven cities, County, SLOCOG, public and private organizations who develop and build housing, as well as local community members.
Next Steps and Recommended Action
Pending final adoption of the HIP by the SLOCOG Board, SLOCOG is committed to:
• Updating the data in the HIP Mapping Tool in sync with the Regional Transportation Plan/Sustainable Community Strategies development’s public processes; Staff Report: Regional Housing & Infrastructure Plan Page 5 July 24, 2023
• Using the HIP as a factor in future grant programming cycles; and, • Leveraging the HIP as a foundational tool during the next RHNA cycle.
The HIP offers tools and information related to strategic actions and priorities that can make the largest impact on accelerating housing supply. The City is encouraged to continue taking voluntary actions aligned with the HIP, considering what will best fit their unique community’s vision and this agency’s goals. Through these voluntary actions, this agency, along with other key stakeholders, can voluntarily contribute to fulfilling the Regional Compact goals and creating a more vibrant and livable region.
Pending Council deliberation, staff recommends that Council provide policy support for the Regional Housing and Infrastructure Plan and direct staff to return with a discussion on ways for the City to best utilize and implement the HIP to inform future policy decisions.
FISCAL IMPACT
There is no fiscal impact for supporting the HIP.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Convey policy support for the Regional Housing & Infrastructure Plan, as a recommitment to the 2020 San Luis Obispo Countywide Regional Compact and provide staff with direction on future discussions relating to implementation of the Regional Housing & Infrastructure Plan; and
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Draft Regional Housing & Infrastructure Plan
• Appendix A – Draft List of HIP Infrastructure Priorities • Appendix B – Affordable by Design Study
• Appendix C – Funding Strategies Assessment
• Appendix D – Regional Compact and Housing Element Regional Chapter • Appendix E – Housing Needs and Highlights
2. Stakeholder Process
Attachment 1
1 | HIP
The San Luis Obispo Council of Governments (SLOCOG) prepared the Regional Housing & Infrastructure Plan for the County of San Luis Obispo to fulfill the terms of the Senate Bill 2 grant program. SLOCOG would like to thank those who helped develop this strategic planning tool between 2022-2023.
SLOCOG Board HIP Steering Committee
• Debbie Arnold, County District 5 Supervisor
• Andy Pease, City of San Luis Obispo Council Member
• John Peschong, County District 1 Supervisor
• Bruce Gibson, County District 2 Supervisor
• Dawn Ortiz Legg, County District 3 Supervisor
• Jimmy Paulding, County District 4 Supervisor
• Jim Guthrie, Arroyo Grande Council Member
• Heather Moreno, Atascadero Mayor
• Daniel Rushing, Grover Beach Council Member
• Carla Wixom, Morro Bay Mayor
• Fred Strong, Paso Robles Council Member
• Ed Waage, Pismo Beach Mayor
• Scott Eades, Caltrans District 5 Director
• Matthew Bronson, Grover Beach City Manager
• Heather Moreno, Atascadero Mayor
• Andy Pease, City of San Luis Obispo Council
Member
• Trevor Keith, County of San Luis Obispo
• Aaryn Abbott, Abbott | Reed
• Jeff Eckles, San Luis Obispo County Housing
Trust Fund
• Courtney Howard, SLO Flood Control & Water
Conservation District
• Anthony Palazzo, Cal Poly
• Jorge Aguilar, Wallace Group
• Lenny Grant, RRM
Housing Advocacy Group Building, Design & Construction
• Ken Trigueiro, Peoples' Self-Help Housing
• Scott Collins, Housing Authority of SLO (HASLO)
• David Cooke, Paso Robles Housing Authority
• Jocelyn Brennan, California Association of Realtors
Region 31
• Steve DelMartini, Compass Real Estate
• Jeff Eckles, San Luis Obispo County Housing Trust
Fund
• Nick Rasmussen, Habitat for Humanity
• Lindy Hatcher, HBA of the Central Coast
• Krista Jeffries, YIMBY
• Jim Dantona, SLO Chamber of Commerce
• Kathy McCorry, South County Chamber of Commerce
• Erica Crawford, Morro Bay Chamber of Commerce
• Gina Fitzpatrick, Paso Robles Chamber of Commerce
• Glenn Silloway, League of Women Voters
• Rachel Kovesdi, Kovesdi Consulting
• Abbott | Reed Inc.
• Covelop
• Specialty Construction
• Wallace Group
• The HRM Corp.
• Ten Over Studio
• People's Self-Help Housing
• RRM Design Group
• Vivian Hanover Ventures Real Estate
• HBA of the Central Coast
• First American Title Company, San Luis Obispo
• Kovesdi Consulting
• Guaranteed Rate
• Omni Design Group
• RRM Design Group
• Midland Pacific Homes
• Z Villages Management and Development
• NKT Commercial
• Coastal Community Builders
• Cal Coastal Properties
• Shea Homes
2 | HIP
City & County Managers Housing Action Team
• John Nilon, County of SLO
• Rebecca Campbell, County of SLO
• Whitney McDonald, Arroyo Grande
• Matthew Bronson, Grover Beach
• Greg Carpenter, Morro Bay
• Sarah Johnson-Rios, Morro Bay
• Ty Lewis, Paso Robles
• Derek Johnson, City of San Luis Obispo
• Scott Collins, Morro Bay
• Wade Horton, County of SLO
• Rachelle Rickard, Atascadero
• James Lewis, Pismo Beach
• Andrew Perez, Arroyo Grande
• Ani Garibyan, County of SLO
• Cory Hanh, Pismo Beach
• Darcy Delgado, Paso Robles
• Katie Banister, Paso Robles
• Kelly Gleason, Atascadero
• Kyle Bell, City of SLO
• Megan Martin, Grover Beach
• Nancy Hubbard, Morro Bay
• Phil Dunsmore, Atascadero
• Rafael Castillo, Grover Beach
• Teresa McClish, City of SLO
• Scot Graham, Morro Bay
• Bruce Buckingham, Grover Beach
SLOCOG Staff
• Pete Rodgers, Executive Director
• James Worthley, Planning Division Chief
• Sara Sanders, HIP Project Manager
• Jayden Hermansen, HIP Mapping Tool Architect
• Ashley Edwards, Grant Administration
• Alan Cazares, Water Projects Data Collection
HIP Consultant Teams
Outreach ECONorthwest BFK Engineering
• Carolyn Berg, Koble Collaborative
• Michael Foote, REACH
• Russ Levanway, REACH
• Melissa James, REACH
• Becky Hewitt
• Emmanuel Lopez
• Rasik Hussain
• Jamil Ditter
• Chelsiah Scouras
• Marley Mueller
• Doug Fleming
The Signatories of the 2020 Regional Housing Compact
County Board of Supervisors, 7 City Councils, and the SLOCOG Board 3 | HIP
CONTENTS
HIP Summary.....................................................................................................................................................5 Data and Project Inventory ............................................................................................................................7 Housing.......................................................................................................................................................8 Water & Wastewater ...............................................................................................................................9 Transportation..........................................................................................................................................9 Bonus Layers.............................................................................................................................................9 Housing Efficiency Analysis.......................................................................................................................... 10 HIP Mapping Tool .......................................................................................................................................... 13 Affordable-By-Design Study ........................................................................................................................ 14 Funding Strategies Assessment................................................................................................................. 15 Housing Highlights ........................................................................................................................................ 15 Stakeholder Engagement Strategy............................................................................................................ 15 Prioritization Considerations ...................................................................................................................... 17 Infrastructure Prioritization..................................................................................................................... 17 Future Data Considerations.................................................................................................................... 18 Conclusion....................................................................................................................................................... 20 Appendix.......................................................................................................................................................... 20 Appendix A: Draft Affordable-by-Design Study .................................................................................. 20 Appendix B: Draft Funding Strategies Assessment........................................................................... 20 Appendix C: Draft Housing Highlights .................................................................................................. 20 Appendix D: 2023 HIP Projects.............................................................................................................. 20 Appendix E: Regional Compact & Housing Element Regional Chapter........................................ 20 4 | HIP
FIGURES
Figure 1: HIP Toolkit.........................................................................................................................................6 Figure 2: Data Inventory Sources..................................................................................................................8 Figure 3: HIP Mapping Process .................................................................................................................. 10 Figure 4: HIP Analysis Process.................................................................................................................... 11 Figure 5: Draft HIP List Summary............................................................................................................... 11 Figure 6: HIP Projects by Community ....................................................................................................... 12 Figure 7: HIP Projects by Subregion.......................................................................................................... 13 Figure 8: HIP Mapping Tool ......................................................................................................................... 14 Figure 9: HIP Stakeholder Engagement..................................................................................................... 16 Figure 10: City Council & County Board of Supervisor HIP Schedule................................................ 17 Figure 11: Prioritization Factors ................................................................................................................. 18 Figure 12: Results from Prioritization Exercise....................................................................................... 18 Figure 13: Future Data Considerations by Community ........................................................................ 19 Figure 14: Future Data Considerations by Subregion........................................................................... 20 5 | HIP
HIP SUMMARY
The Regional Housing & Infrastructure Plan (HIP) is a planning toolkit created collaboratively by the seven Cities, County of San Luis Obispo, and SLOCOG in response to the region’s growing housing and infrastructure shortage. The HIP inventories infrastructure barriers to housing, identifies available grant funding options to implement infrastructure needs, and develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA).
In 2018, the County of San Luis Obispo recognized the need to work regionally in solving the critical shortage of infrastructure resources and housing attainability in San Luis Obispo County. This challenge is larger than any one jurisdiction can solve alone. The HIP in no way removes land use authority from local jurisdictions; rather, it reflects each community’s relevant, long-term plans in one regional tool to inform our region’s future efforts in addressing the collective economic and social challenges associated with lack of housing supply.
In January 2019, the County Board of Supervisors approved the kickoff of this effort. Since inception, the HIP has been a phased approach with the goals of regional collaboration, strategic action planning, and aligning land use planning documents which were all agreed upon with the unanimous approval of the 2020 Regional Compact.
The Regional Compact (April 2020)
The County, seven cities, and San Luis Obispo Council of Governments (SLOCOG) approved the first major milestone of the phased regional strategy - the San Luis Obispo Countywide Regional Compact. The Regional Compact is an aspirational document that sets the tone and goals for future recommended plans and actions among the local agencies. It establishes a united regional framework to unlock the potential to develop an adequate supply of housing and resilient infrastructure that supports our economic prosperity. It recognizes that people, water, transportation, connectivity, and housing form the foundation of the San Luis Obispo Region’s healthy, livable communities and thriving economic opportunity. In signing the Compact, agencies agreed to develop their “first Regional Infrastructure and Housing Strategic Action Plan.” As stated in the 2020 Compact, the six “goals will underpin the future Regional Infrastructure and Housing Strategic Action Plan, create compatibility among the eight local agencies Housing Elements, and drive future recommendation for collaborative actions.” 6 | HIP
Housing Element Alignment (June 2020)
The County and the seven Cities were each required to update their jurisdiction's Housing Elements to reflect how local communities are planning for the State’s 6th Cycle Regional Housing Needs Allocations through 2028. The Housing Elements were submitted to the Housing and Community Development (HCD) in December 2020. As part of the Housing Element update process, the regional approach section was developed to showcase the ongoing commitment of each agency to the HIP collaboration. This section presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. It was the first time all eight jurisdictions included a regional approach chapter in their required housing elements.
Regional Housing and Infrastructure Plan (2023)
Put on hold during the Pandemic, the HIP was revived in June 2022 with the establishment of a Memorandum of Understanding between the County of San Luis Obispo and SLOCOG.
SLOCOG became the project manager of the effort. With Senate Bill 2 funding sunsetting in September 2023, the HIP began moving at an accelerated pace. The 2023 regional toolkit is comprised of seven components listed in Figure 1: HIP Toolkit. These components intertwine and build upon one another.
Figure 1: HIP Toolkit
HIP Components Informs
Data and Project Inventory Infrastructure barriers to housing Housing Efficiency Analysis Housing Efficient Areas in HIP HIP Mapping Living strategic analysis tool that show how housing and infrastructure interrelate
Affordable-by-Design Study Menu of possible policies to increase housing attainability Funding Strategies Assessment Funding the region could pursue for HIP projects Housing Highlights Communication tool: Understanding the need for housing, affordability, and opportunities
Prioritization Considerations Further refinement of the prioritization process and data Agencies that supply or operate local infrastructure facilities identified 440 water, wastewater, and transportation infrastructure projects in the HIP project inventory. Of those, 18% (80 projects) were located within Housing Efficient Areas and identified as barriers to housing.
About one quarter of the HIP projects are water related and the remaining are transportation improvements. The estimated total cost for all 80 HIP projects is over one billion dollars. This information can be seen via the interactive HIP Mapping Tool.
BKF Engineering’s HIP Funding Strategies Assessment evaluates the disparity between the cost estimate for each HIP identified project and the anticipated funding that could be obtained 7 | HIP
through various financial mechanisms. The Funding Analysis involved several steps: a funding requirement determination, an evaluation of potential funding sources, an estimation of potential grant funding, and a funding gap calculation. With current grant funding sources, our region can optimistically be awarded around $91 million dollars depending on a local jurisdiction’s interest in pursuing funding for that project. That leaves a funding gap of about $924 million dollars for infrastructure projects needed to support new housing development.
More detail is available in Appendix B: Draft Funding Strategies Assessment.
Our region also wanted to look at the concept of Affordable-by-Design (ABD) and evaluate housing affordability characteristics. The intention of ECONorthwest’s ABD study was to identify if certain units (without financial assistance or deed restrictions) could be considered affordable as either low- or moderate-income units and if so, how to incentivize ABD development. The ABD Study collected rental and for-sale housing data, interviewed local housing developers, created a unit feasibility analysis, collected case study examples, and identified polices that could incentivize ABD units. The ABD Study revealed that the rental market may be able to produce ABD housing in at least some parts of the County and is likely within a range where regulatory changes could make a difference. However, a longer approach is needed on the for-sale side since the gap between market sales prices and the target sales prices for moderate-income households is likely too large to overcome through design and regulatory measures alone. More detail is available in Appendix A: Draft Affordable-by-Design Study.
There have been bright spots of success: thoughtful projects developed with engagement from the community, progress in streamlining processes and allowing new types of housing. There has been increased collaboration between cities as well as between public and private partners. Through these efforts, projects are shifting to balance community character and ranges of affordability. Created by REACH and Koble Collaborative, the HIP Housing Highlights provides a quick look at what is driving the effort, some highlights of progress, and the opportunities ahead. More detail is available in Appendix C: Draft Housing Highlights.
DATA AND PROJECT INVENTORY
The HIP analyzes the transportation, water, and wastewater infrastructure barriers to housing development. Figure 2 provides the source details on the data used in the HIP analysis. 8 | HIP
Figure 2: Data Inventory Sources
Housing
Proposed residential developments within the seven cities and unincorporated county were collected from planning staff in 2021. This data includes specific plans, proposed residential Data Inputs
Transportation
Housing
Water &
Wastewater
Flood Risk
Sensitive Habitat
Open Space
Prime Farmland
Fire Risk
7 Cities & County Planning Staff (Land Use
Model, 2022 Transportation Efficiency Analysis
(TEA), 2020 Housing Elements, Developer
Updates
Data Sources
44 water & wastewater entities surveyed,
Community Improvement Plans reviewed
7 Cities & County Public Works Staff, 2023 RTP
Projects List, 2022 TEA
Federal Emergency Management Agency’s
“Flood Insurance Rate” map
California Department of Fish and Wildlife
“Biogeographic Information Observation
System (BIOS)”
California Protected Areas Database and the
California Conservation Easement Database,
2023
Farmland Mapping and Monitoring Program
(FMMP) 2018
CALFIRE High Fire Hazard Severity Zones
(2023), Local Jurisdictions GIS teams
9 | HIP
and mixed-use projects projected for to be built between now and 2045. Residential development that has been completed or near completion was removed from the HIP analysis.
Water & Wastewater
In early January 2023, SLOCOG staff contacted the 44 water and wastewater agencies found in the 2021 Regional Water Infrastructure Resiliency Plan. Five initial questions were asked to the agencies:
1. Is your agency fulfilling its water/wastewater service demand?
2. Do you have capacity to serve additional housing units?
3. Is your agency experiencing any infrastructure limitations or does it have any infrastructure needs?
4. Have they been planned for?
5. Is there a cost estimate for these improvements?
The data collected includes the findings of the 2021 Regional Water Infrastructure Resiliency Plan, agency responses, local capital improvement project lists, and information from the County of San Luis Obispo’s Water Team. Water and wastewater service districts were used as water boundaries. Detailed GIS based data from these agencies is limited and water capacity data will be informed by the County’s Master Water Report Update. However, infrastructure projects, estimated costs, and timing were all collected. In 2023, forty-five water and wastewater projects were collected from the agencies.
Transportation
Transportation infrastructure was studied in the Transportation Efficiency Analysis (TEA) which the SLOCOG Board approved in April 2022. The TEA identified transportation barriers to housing production which resulted in a list of transportation projects that were prioritized as either land use necessitated or land use beneficial. Land use necessitated projects were transportation projects required for new housing development. These projects are considered TEA priority projects because they are needed to accelerate housing development. Land use beneficial projects are transportation projects that are not required for housing development but improve the transportation efficiency of an area. Of the 350+ transportation investments contained within in the 2023 Regional Transportation Plan (RTP), 64 transportation investments were identified as TEA projects. The San Luis Obispo Regional Transit Authority (RTA) provided details on transit projects and additional improvements needed to best serve additional housing development. The transportation infrastructure list was further refined in the HIP analysis and prioritized differently.
Bonus Layers
The HIP analysis provides the data that connects infrastructure and housing on a regional scale for the first time. The 2023 effort is also the first phase of the analysis. When planning for housing, land conditions are carefully considered. To provide a fuller picture, flood hazard, 10 | HIP
sensitive habitat, open space, prime farmland, and fire hazard severity data were included as additional reference information. These were not used to remove infrastructure projects from the HIP list but are there to provide additional context.
HOUSING EFFICIENCY ANALYSIS
The Housing Infrastructure Analysis looks at three efficiency factors: transportation access, water capacity, and wastewater capacity. By combining the three efficiency factors, housing efficient areas were identified. This is graphically represented in Figure 3: HIP Mapping Process.
Any infrastructure projects located in the “efficient” or “potential” mapped areas moved on to the prioritization phase. All areas and projects that were considered “limited” were removed from further analysis. The HIP in no way removes land use authority from local jurisdictions or changes zoning of an area. The Communities of Shandon, Avila Beach, and Cambria were removed from HIP analysis since they did not meet the efficiency criteria.
Figure 3: HIP Mapping Process
There were 440 infrastructure projects collected as part of the data inventory. Of those, 18% (80 projects) were located within a Housing Efficient Area. The 80 projects moved on to the prioritization phase. The flow of the analysis can be seen in Figure 4: HIP Analysis Process. 11 | HIP
Figure 4: HIP Analysis Process
The draft HIP list contains 80 infrastructure projects with an estimated cost of more than one billion dollars in need. As seen in Figure 5: Draft HIP List Summary, one quarter of the needed infrastructure investments are water-related (supply & wastewater).
Figure 5: Draft HIP List Summary
Estimate
($ millions) Projects
Total Estimate $ 1,015 80
WATER $ 396 21
TRANSPORTATION $ 618 59
WATER
$396M
TRANSPORTATION
$618M
LIMITED
Missing 2 of the 3
efficiency factors –
limited capacity for
housing acceleration
Include any Infrastructure
Needs in HIP
Future Add-ins:
• Job clusters data
• Master Water Report data
• Transportation Access
Factors:
• 1 mile from interchange
• ½ mile from a bike way
• ½ mile from bus stop
• Has water capacity
• Has wastewater capacity
EFFICIENT POTENTIAL
Future Add-ins:
• Job clusters data
• Master Water Report
data
Missing 1 of the 3
efficiency factors
Housing Efficient Areas (HEA) Analysis
Considers 3 efficiency factors: (1) transportation access, (2) water capacity, (3) wastewater capacity HIP Projects
Include any
infrastructure needs
that would help make
area efficient
12 | HIP
Figure 5: HIP Projects by Community breaks down the total number of HIP projects and the total estimated investment needed by community. Among the 80 total projects, three are listed as multijurisdictional projects including Central Coast Blue, the Regional Transit Authority Cashless Fare System Conversion, and the North County Transit Charging Facility. In Figure 6, these are listed as a separate row and are not included individually in the "HIP Projects" column for each community. However, multijurisdictional project costs are included in the community's total investment needed.
Figure 6: HIP Projects by Community
Community HIP
Projects
Total Estimated
Investment
Needed ($
millions)
Multijurisdictional* 3 $ 95
Arroyo Grande 1 $ 136
Atascadero 4 $ 112
Grover Beach 4 $ 54
Morro Bay 1 $ 22
Paso Robles 17 $ 184
Pismo Beach $ 18
San Luis Obispo 26 $ 267
County 22 $ 172
Cayucos 2 $ 8
Los Osos 3 $ 15
Nipomo 6 $ 34
Oceano 1 $ 4
San Miguel 1 $ 41
Santa Margarita 1 $ 2
Templeton 7 $ 66
Cal Poly 2 $ 50
Total Projects 80 $ 1,015
Ninety-nine percent of the region’s population lives in four out of five subregions: North County, Central County, North Coast, and South County. The North and Central subregions have most of the HIP projects and combined make up an estimated 81% of the proposed new housing units in the entire region.
13 | HIP
• North Coast (Los Osos, Morro Bay, and Cayucos)
• North County (Santa Margarita, Atascadero, Templeton, Paso Robles, San Miguel) • South County (Pismo Beach, Grover Beach, Arroyo Grande, Oceano, Nipomo) • Central County (San Luis Obispo)
*The Communities of Shandon, Avila Beach, and Cambria were removed from HIP analysis since they did not meet the efficiency criteria.
Figure 7: HIP Projects by Subregion
Subregion Total Proposed
Dwelling Units
HIP
Projects
Total Estimated
Investment Needed ($
millions)
North County 6,540 31 $ 405
Central County 6,171 29 $ 319
North Coast 127 6 $ 45
South County 2,876 13 $ 246
$ 1,015
The complete HIP list can be viewed in Appendix D: HIP Project List.
HIP MAPPING TOOL
The HIP Mapping Tool is an interactive web app that supplements this plan. It was created to illustrate the HIP geographical analysis and support communication and collaboration. The web app includes three pages.
On the Explore page (shown below), users can pan/zoom around the Region to view and click on infrastructure projects. Transportation projects are symbolized with lines and open circles, and water/wastewater projects are symbolized with points. Bonus layers may be added to the map by clicking the map layers icon and opening the "bonus layers" group. Residential projects, symbolized by grey polygons, may also be selected to learn more information.
On the Project List page, users can sort infrastructure projects by water and transportation.
Both lists are collapsible. When a project is selected on the list, the map will zoom to the project. The user may also click on the project on the map to view a pop-up showing the name, description, and estimated cost.
On the "Story" page of the tool, users may scroll through the HIP Storymap. It includes a quick summary of the HIP, the four-step geographic analysis, a timeline, and a link to the draft plan. 14 | HIP
This tool was created using ArcGIS Experience Builder, ArcGIS Pro, ArcGIS Online, and ArcGIS Storymaps. It is in the draft stages and will continue to be developed along with the HIP.
Figure 8: HIP Mapping Tool
AFFORDABLE-BY-DESIGN STUDY
Our region also wanted to look at the concept of Affordable-by-Design (ABD) and evaluate housing affordability characteristics. The intention of ECONorthwest’s ABD study was to see if certain units (without financial assistance or deed restrictions) could be considered affordable as either low- or moderate-income units and if so, how to incentivize ABD development. The ABD Study collected rental and for-sale housing data, interviewed local housing developers, created a unit feasibility analysis, collected case study examples, and identified polices that could incentivize ABD units. The ABD Study revealed that the rental market may be able to produce ABD housing in at least some parts of the County and is likely within a range where regulatory changes could make a difference. However, a longer approach is needed on the forsale side since the gap between market sales prices and the target sales prices for moderateincome households is likely too large to overcome through design and regulatory measures alone. More detail is available in Appendix A: Draft Affordable-by-Design Study.
Map Layers
15 | HIP
FUNDING STRATEGIES ASSESSMENT
BKF Engineering’s HIP Funding Strategies Assessment evaluates the disparity between the cost estimate for each HIP identified project and the anticipated funding that could be obtained through various financial mechanisms. The Funding Analysis involved several steps: a funding requirement determination, an evaluation of potential funding sources, an estimation of potential grant funding, and a funding gap calculation. With current grant funding sources, our region can optimistically be awarded around $91 million dollars depending on a local jurisdiction’s interest in pursuing funding for that project. That leaves a funding gap of about $924 million dollars for infrastructure projects needed for housing development. More detail is available in Appendix B: Draft Funding Strategies Assessment.
HOUSING HIGHLIGHTS
There have been bright spots of success: thoughtful projects developed with engagement from the community, progress in streamlining processes and allowing new types of housing. There has been increased collaboration between cities as well as between public and private partners. Through these efforts, projects are shifting to balance community character and ranges of affordability. Created by REACH and Koble Collaborative, the HIP Housing Highlights provides a quick look at what is driving the effort, some highlights of progress, and the opportunities ahead. More detail is available in Appendix C: Draft Housing Highlights.
STAKEHOLDER ENGAGEMENT STRATEGY
The HIP engagement strategy established four outreach objectives:
• Foster ongoing collaboration and buy-in among private and public stakeholders. • Remind government/elected officials of the Regional Compact and the motives behind it to lay groundwork for their commitment to the 2023 regional HIP. • Build public sentiment in support of solutions and regional planning efforts related to HIP.
• Support effective coordination with and communication among SLOCOG, HIP consultants and the Comprehensive Economic Development Strategy (CEDS) teams.
The San Luis Obispo region has strategic goals for the future of housing and infrastructure, but they can only be achieved through the decisions and actions of organizations and stakeholders.
The stakeholder meetings are designed to have honest conversations about what each organization can and needs to do to realize those goals. Figure 9 depicts the timeline and amount of engagement that done during the 2023 HIP.
16 | HIP
Figure 9: HIP Stakeholder Engagement
The following list are the key stakeholder groups engaged – totaling approximately 150 individuals that participated during the HIP development process in January - July 2023:
Regional Managers/ Key Staff: A key driving force behind developing this plan has been regional leadership, including eight City Managers, County Administrative Officer, SLOCOG Executive Director (and key directors from their organizations).
Building & Development Cluster: Leaders in the building and development industry that convene quarterly with the goal of regional coordination focused on aligning housing and infrastructure needs to create a strong local economy.
Housing Advocacy Group: Organizations and individuals that have significant influence in the community, with representation from the non-profit builders, local chambers of commerce and various advocate organizations.
Housing Action Team: Existing work group made up of planning/ community development staff from Cities, County, and SLOCOG.
Community Stakeholders: The broader community was engaged through public updates to SLOCOG Board as well as through presentations to their Councils and Boards through JuneAugust 2023.
HIP Steering Committee: Formed to oversee the vision for the HIP Outreach Strategy and to bring leaders in each of these areas together, aligning and integrating the various interests that will lead to action on the region’s priorities.
17 | HIP
Elected Officials: Two City Council Members with knowledge of regional differences bring the various perspectives and concerns voiced by their respective constituents for this Steering Committee. The full 40 elected officials within the region will have an opportunity to hear about the plan through public updates to SLOCOG Board as well as through presentations of the recommended HIP to their Councils and Boards in Summer 2023.
Figure 10: City Council & County Board of Supervisor HIP Schedule June 27, 2023 City of Morro Bay Council
July 11, 2023 City of San Luis Obispo Council
July 11, 2023 City of Atascadero Council
July 18, 2023 City of Paso Robles Council
July 18, 2023 City of Pismo Beach Council
July 24, 2023 City of Grover Beach Council
July 25, 2023 City of Arroyo Grande Council
August 8, 2023 County Board of Supervisors
At the time of this release (July 14), staff presented the HIP to three City Councils. To-date, Councils have offered rich feedback related to the approach and overall regional strategy.
However, to not over accentuate a few Councils’ comments prior to the remaining Council presentations, key input themes will be presented during the August 2 SLOCOG Board Meeting.
PRIORITIZATION CONSIDERATIONS
Infrastructure Prioritization
Based on input from stakeholders in February & March 2023, the HIP infrastructure projects were prioritized to maximize ability to accelerate housing within housing efficient areas, considering three factors: (1) if project is needed for new housing; (2) benefit/cost (investment cost per additional potential housing units served); and (3) barriers to development. Barriers to development include instances such as a building moratorium. These barriers are outside the controls of the HIP and slow housing development. The prioritization process can be seen in Figure 11: Prioritization Factors.
Infrastructure projects were divided into two lists, water and transportation, and then prioritized. It was concluded that transportation projects, in general, could be built at various stages of housing development. Whereas housing cannot be built without adequate water distribution and collection infrastructure. Each list was sorted by highest benefit/cost and the total funding need for the list was divided by three. The premise of the 2023 HIP is to accelerate housing development, so the vetted prioritization factors relate solely to the total amount of proposed housing. In the future, other factors like jobs-housing balance and proposed housing unit type could be considered.
18 | HIP
Figure 11: Prioritization Factors
Figure 12 provides a summary of prioritization exercise using the 80 HIP projects. These factors were vetted multiple times but as a living document, there is room for continued refinement of the process and data. Currently, there is no funding specifically tied to the 2023 HIP so prioritizing further was unnecessary. However, the identification of the 80 HIP projects (from 440) is a critical first step in linking the region’s efficient housing areas to critical infrastructure projects.
Figure 12: Results from Prioritization Exercise
Estimate
($ Millions) Projects
Estimate for all HIP Projects $ 1,014 80
High $ 348 54
Medium $ 385 10
Low $ 281 16
Future Data Considerations
Creating balanced communities is one of the six 2020 Regional Housing Compact goals. The 2023 Sustainable Communities Strategy defines a jobs-housing balanced community as:
Located in Job Cluster
High Medium
Needed to support
new housing
Limited barriers to
development
Low
Outside barriers to
development that
would likely delay or
prohibit
development
Low Benefit/Cost
Needed to support
new housing
Limited barriers to
development
Located in Jobs Cluster
High Benefit/Cost Moderate Benefit/Cost
Needed to support
new housing
HIP Project Prioritization
Considers: (1) if project is needed for new housing, (2) Benefit/Cost (investment cost per additional potential housing units served), (3) barriers to development 19 | HIP
A community where residents can both live and work. With jobs and housing in close proximity, vehicle trips and commute times reduce and active transportation and transit use increase. These balanced communities also provide a broad mix of housing options to accommodate households with a range of incomes.
As a proactive measure, the jobs-housing balance of communities was analyzed using live/work percentages. A live/work percentage is the total number of employees living and working in the city or community boundaries divided by the total workers living in that boundary. In future iterations of the HIP, jobs-housing balance could be integrated through the live/work percentage and additional job cluster data as mentioned in Figure 4: HIP Analysis Process and Figure 13: Future Data Considerations by Community.
Figure 13: Future Data Considerations by Community
Community
Number of Total
Proposed
Dwelling Units
% of Multifamily units
proposed
Live Work
Percentage
Arroyo Grande 600 18% 14%
Atascadero 722 75% 21%
Grover Beach 624 81% 9%
Morro Bay 120 47% 21%
Paso Robles 4,959 42% 28%
Pismo Beach 297 30% 12%
San Luis Obispo 6,171 58% 41%
County 2,221 25%
Cayucos 7 0% 13%
Los Osos - 0% 11%
Nipomo 1,351 34% 9%
Oceano 4 100% 4%
San Miguel 152 0% 3%
Santa Margarita 514 10% 2%
Templeton 193 19% 12%
Total 15,714
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS 2021 Figure 13 and Figure 14 are for reference purposes only. This information is included since it relates to goals found in the 2020 Regional Housing Compact, HIP stakeholder interest, and or relates to the 2023 Affordable-by-Design Study. The 2023 Affordable-By-Design Study has 20 | HIP
shown that units within the multi-family category are more aligned units in the low- and moderately priced income categories.
Figure 14: Future Data Considerations by Subregion
Subregion
Number of Total
Proposed
Dwelling Units
% of Multi-family
units proposed
Live Work
Percentage
North County 6,540 42% 40%
Central County 6,171 58% 44%
North Coast 127 44% 27%
South County 2,876 41% 27%
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS
CONCLUSION
The 2023 HIP is the first planning tool of its kind, and it is intended to be a living document. For the last five years, collaboration has continued to build, and these incremental steps have allowed the region to make progress in addressing the monumental challenges of the housing and infrastructure shortage. Nothing in the HIP mandates any of the Cities, County, or SLOCOG to take certain actions, but rather offers analysis to inform decisions and tools to support our communities moving forward. It is understood that each community is unique and must consider what works for their community while considering how to be a good regional partner.
The 2023 HIP moves the region one step further in a larger and ongoing regional collaborative effort to develop an adequate supply of housing, create resilient infrastructure, and support our economic prosperity.
APPENDIX
Appendix A: Draft Affordable-by-Design Study
Appendix B: Draft Funding Strategies Assessment
Appendix C: Draft Housing Highlights
Appendix D: 2023 HIP Projects
Appendix E: Regional Compact & Housing Element Regional Chapter
Project Theme Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
Transportation Arroyo Grande US 101 Traffic Way/El Campo Interchange
Closure of SB Fair Oaks off-ramp & Traffic Way NB & SB ramps, and all at-grade access points between Traffic Way and Los Berros Road and construct new interchange in the vicinity of El Campo/Traffic Way.
$ 99,645,000 By 2045
Transportation Atascadero US 101 / Del Rio Rd. I/C
modifications
Construct interchange improvements in association with
developments $ 7,000,000 By 2028
Transportation Countywide Cashless Fare System Conversion (further study is required) $ 550,000
Transportation Grover Beach S. 4th St. bike lanes: Grand Ave. to city limits Restripe to provide Class II/Class IV bike lanes $ 45,000 Unconstrained Transportation Grover Beach The Pike Complete Street
Improvements striping, bike lanes $ 93,225 By 2035
Transportation Grover Beach Beach Cities Trail: Boardwalk Dune Trail Construct bike/ped trail $ 15,300,000 Unconstrained Transportation Grover Beach Grover Beach Service Addition South County Transit provide service to Urban Reserve (Strawberry Field)
*When working with
development early,
stop can be added with
minimal cost.
Transportation Nipomo Interchange Improvements at
Willow Rd US 101 NB & SB ramp signalization $ 2,734,600 By 2035 Transportation Nipomo Roadway Extension of Hetrick Rd Extend Hetrick Rd from Glenhaven Place to Pomeroy Rd to two travel lanes and 8' shoulder $ 3,832,500 After 2045
Transportation Nipomo Roadway Extension of North
Frontage Rd Extend North Frontage from Sandydale Dr to Willow Rd $ 9,944,000 By 2035 Transportation Nipomo
North Frontage Rd. extension:
Sandydale Rd. to Summit Station
Rd.
Extend North Frontage Rd. from Sandydale Rd. to Summit
Station Rd. $ 17,394,568 By 2045
Transportation Nipomo Nipomo Service Addition RTA provide service to Dana Reserve *working with developer *When working with
development early,
stop can be added with
minimal cost.
Transportation North County North County Charging Facility Charging facility at 1735 Paso Robles St., Paso Robles $ 1,000,000 Transportation Paso Robles N. River Rd. Class I trail multi-use paved trail from 13th St. to SR46 along river trail $ 3,214,500 By 2028
Transportation Paso Robles Creekside Bike Path: Phase 1 and 2 Construct path: Nicklaus to Old S. River Rd. $ 3,600,000 Unconstrained Transportation Paso Robles Huer Huero Creek Trail Construct Class II bike lanes $ 7,818,300 by 2045 Transportation Paso Robles Paso Robles Eastside Grand Loop Complete gaps in the Grand Loop Bikeway Route on the
eastside of town, not already completed by Olsen, Chandler, Beachwood, North River Rd., and Huer Huero Creek to
complete a connected orbital Class I network.
$ 11,187,000 By 2035
Transportation Paso Robles
Niblick Rd. Corridor enhancements,
operational improvements,
Complete Streets
Transportation demand management improvements $ 17,257,000 By 2035 Transportation Paso Robles SR 46E / Union Rd. improvements (Phase 2) Construct Phase 2 improvements: new interchange $ 15,330,000 by 2045 Transportation Paso Robles US 101 / SR 46W I/C construct two roundabouts
Operational improvements: modify interchange, EB and WB roundabouts (Phase 3) $ 21,752,500 By 2035
Transportation Paso Robles SR 46E / Union Rd. improvements (Phase 1)
Construct overcrossing; realignment, vertical sight distance improvements, channelization & bike lanes/sidewalks on Union Road from Ardmore Road to Barney Schwartz Park
$ 52,500,000 by 2028
Transportation Paso Robles South River Rd. / Charolais Rd. roundabout Construct roundabout $ 2,486,000 By 2035
Transportation Paso Robles Airport Road extension North Chandler Ranch
Extend Airport Road as 2-lane arterial from Linne Rd. to Union Rd. $ 3,066,000 by 2045
Transportation Paso Robles Creston Rd.: Niblick Rd. to
Meadowlark Dr. (Phase 3)
Install traffic-calming and intersection improvements- roadway diet and signals $ 4,313,210 By 2035
Transportation Paso Robles Creston Rd.: South River Rd. to Niblick Rd.
Streetscape enhancements and pedestrian crossing
improvements $ 10,000,000 By 2028
Transportation Paso Robles Paso Robles Service Addition Paso Express provide service to Beechwood development *When working with
development early,
stop can be added with
minimal cost.
F-1 Appendix D: 2023 HIP Projects 1
Project Theme Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
Transportation Paso Robles Paso Robles Service Addition Paso Express provide service to Olsen/South Chandler development
*When working with
development early,
stop can be added with
minimal cost.
Transportation Paso Robles Paso Robles New Route Paso Express provide service to North Chandler Ranch* $700,000 yearly operating $ 1,700,000
Transportation San Luis Obispo Froom Ranch Frontage &
Streetscape Improvements
Install sidewalks on west side and median between Irish Hill Plaza and Calle Joaquin. $ 932,250 By 2028
Transportation San Luis Obispo Tank Farm Road Complete Street Convert from 5-lane to 3-lane, add Class IV bikeways, landscaped medians, and pedestrian crossings $ 1,533,000 By 2045 Transportation San Luis Obispo Madonna Rd. - Class IV - Madonna Inn to Higuera Ave.
On Madonna Ave. install Class IV from Madonna Inn to Higuera Ave. $ 1,864,500 By 2035
Transportation San Luis Obispo Broad St. Median Improvements Install landscaped medians on Broad St. north of Tank Farm Rd. $ 3,169,650 By 2035 Transportation San Luis Obispo Railroad Safety Trail (Phase 7): Bike connection south of Tank Farm Rd. Construct Class I bike path and ped/bike bridge over Tank Farm $ 3,169,650 By 2035 Transportation San Luis Obispo Los Osos Valley Road Protected Bike Lanes
Install Class IV bike lanes along LOVR between Diablo and S.
Higuera $ 3,750,250 By 2028
Transportation San Luis Obispo Railroad Safety Trail: bike bridge crossing at Industrial Way
Construct bike bridge across UPRR tracks at Industrial Wy. to the RRST $ 3,909,150 By 2045
Transportation San Luis Obispo South of Broad St. and Santa Barbara Ave. Protected Bike Lanes
Install Class IV bikeway on Santa Barbara (Upham to Broad) and Broad from Santa Barbara to Farmhouse $ 4,599,000 By 2045 Transportation San Luis Obispo Higuera Protected Bike Lanes Install Class IV bikeways along Higuera from Marsh to southern City Limits $ 8,817,000 By 2045
Transportation San Luis Obispo US 101 / Prado Rd. I/C
Improvements (Phase 2)
Construct SB off ramp and on ramp; SB auxiliary lane btw Madonna Rd. to Prado Rd. $ 12,430,000 By 2035
Transportation San Luis Obispo US 101 / Prado Rd. I/C and NB auxiliary lane (Phase 1)
Construct Prado Rd. overcrossing; NB auxiliary lane. Extend Prado Rd. east to Froom Ranch Way; construct bike lanes, sidewalks.
$ 63,750,000 By 2028
Transportation San Luis Obispo Los Osos Valley Rd/Auto Park Wy Intersection Improvements
Install traffic signal, median refuges, hi-vis crosswalks and bicycle protected intersection element $ 1,000,000 By 2028 Transportation San Luis Obispo Buckley Rd. widening: Thread Ln. to Buttonwood Wy.
Widen Buckley Rd. to provide paved shoulders, center left turn lane and to flatten existing horizontal curve $ 1,988,800 By 2035 Transportation San Luis Obispo Broad St/Tank Farm Rd Intersection Improvements
Add NB right turn lane, WB right turn lane, and ped/bike crossing enhancements. $ 2,299,500 By 2045
Transportation San Luis Obispo Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1) Widen road to three lanes with Class II bike lanes and sidewalks $ 3,057,780 By 2035 Transportation San Luis Obispo Johnson Ave/Orcutt Rd Roundabout Install roundabout $ 3,066,000 After 2045 Transportation San Luis Obispo Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.
Extend Santa Fe Rd north w/ new bridge over creek and
roundabout intersection at Tank Farm/Santa Fe $ 3,822,225 By 2035 Transportation San Luis Obispo Horizon Lane Extension Extend Horizon Ln between Buckley and Tank Farm as commercial collector w/ roundabout at Tank Farm $ 7,665,000 by 2045 Transportation San Luis Obispo Buckley Rd. widening: Vachell Ln. to Broad St. Widen to three lanes between Hoover St. and Broad St. $ 9,964,500 By 2045 Transportation San Luis Obispo Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements
Replace SLO Creek bridge w/ 6-lane bridge (2 each direction + turn lanes), sidewalks, Class IV bike lanes & construct 2nd NB turn lane from S. Higuera to Prado and a bicycle protected intersection
$ 12,000,000 By 2028
Transportation San Luis Obispo Santa Fe Rd. extension: south of Tank Farm Rd.
Realign and extend Santa Fe Rd. from Hoover Ave. to Tank Farm $ 15,330,000 by 2045
Transportation San Luis Obispo Tank Farm Rd. widening: Higuera St. to Broad St.
Widen to five lanes with Class II bike lanes & Class I paths between Horizon and Santa Fe $ 28,283,850 After 2045
Transportation San Luis Obispo Prado Rd. extension: South Higuera St. to Broad St.
Construct extension as 4-lane road (plus median/LT lane), Class I shared-use paths, and new intersection at Broad St. & Prado Rd.
$ 51,948,771 By 2045
Transportation San Luis Obispo San Luis Obispo Service Addition SLO Transit provide an additional stop along Board or Tank Farm
*When working with
development early,
stop can be added with
minimal cost.
Transportation San Luis Obispo San Luis Obispo Service Addition SLO Transit provide access between Broad and South Higuera in the Margarita Area
*When working with
development early,
stop can be added with
minimal cost.
Transportation Templeton Las Tablas Rd. Class II bike lanes:
US 101 to Old County Rd. Construct Class II bike lanes $ 3,060,000 Unconstrained F-1 Appendix D: 2023 HIP Projects 2
Project Theme Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
Transportation Templeton Las Tablas Rd Interchange
Improvements
On Las Tablas Rd from Bennett Way to US 101, widen US 101 SB off-ramp and add westbound lane $ 3,107,500 By 2035
Transportation Templeton US 101 / Main St. I/C improvements Reconstruct interchange and widen Main St. from US 101 to Creekside Ranch Rd. $ 22,374,000 By 2035
Transportation Templeton Interchange Improvements at Las Tablas Rd
Phase 3 Widening to 5 lanes (Bridge Removal and replacement) or Roundabouts $ 22,995,000 By 2045
Transportation Templeton Las Tablas Rd. at Florence St.
Improvements
Traffic signal, ADA ramps, and left-turn lane at Las Tablas Rd. at Florence St. $ 807,950 By 2035
Transportation Templeton
Bennett Way connection/ frontage
road: Templeton Hills Rd. to
Vineyard Dr.
Connect Bennett Way between Templeton Hills Road and
Vineyard Drive $ 5,593,500 By 2035
Water
Arroyo Grande,
Grover Beach,
Pismo Beach
Central Coast Blue: GB, AG, PB
Water Supply & Sewer Main
Regional Recycled water project (PB, GB, AG); Phase 1-pipe treated wastewater from Pismo Beach’s Wastewater
Treatment Plant (WWTP) to a new advanced treatment facility located in Grover Beach. Phase 2 - expand to treat
wastewater from South San Luis Obispo County Sanitation District’s WWTP.
$ 93,000,000 next 5 years
Water Atascadero Wastewater Upgrade Wastewater upgrade to address some Regional Water Quality Control Board water quality permitting standards. $ 25,000,000 5-7 years Water Atascadero Wastewater Treatment Plant
Expansion Expand the capacity of our wastewater treatment plant. $ 70,000,000 Next 2-4 years Water Atascadero Atascadero Mutual Water Company treatment facility to remove PFAS (planning stages) $ 10,000,000 next 2 years Water Cayucos CSA 10/10A- Cayucos (Cayucos
Water Treatment Plant) water line loops and replacements $ 8,000,000 next 5 years Water Cayucos Cayucos Sanitary District
(wastewater) Capital Improvement Projects $ 300,000 1 year Water Los Osos S&T Mutual Water Company
pipeline to secure a secondary water source, which would run between their water system and the Los Osos CSD, Shared Bike path Easement
$ 2,900,000 next 5 years
Water Los Osos S&T Mutual Water Company North Water Tank $ 2,500,000 next 5 years Water Los Osos Los Osos CSD infrastructure to import supplemental water $ 10,000,000 next 5 years Water Morro Bay Morro Bay (City) Fire flow limitations; aging infrastructure $ 22,000,000 next 10 years Water Nipomo CSA 1 Nipomo Capital Improvement Projects $ 100,000 next 5 years Water Oceano Oceano CSD Water Resource Reliability Program (capital improvements), and upgrade of water mains $ 3,800,000 next 10 years
Water Paso Robles Paso Robles City wastewater
There are some areas of the City’s wastewater collection (sewer) system that must be upsized in conjunction with new development
$ 14,300,000 next 10 years
Water Paso Robles Paso Robles City water some portions of water system experiencing infrastructure constraints $ 14,300,000 next 10 years
Water San Luis Obispo Cal Poly Increase water storage capacity for campus domestic use and fire suppression $ 15,000,000 by 2026
Water San Luis Obispo San Luis Obispo (City) capacity constraints on sewer conveyance network, additional water storage tanks and water transmission main needed $ 18,000,000 n/a Water San Luis Obispo Cal Poly plans to build on-campus Water Reclamation Facility $ 35,000,000 by 2026 Water San Luis Obispo
County
CSA 18 Los Ranchos Sewer Rehabilitation $ 1,500,000 next 10 years Water San Miguel San Miguel CSD water pumping capacity, wastewater sewer treatment capacity, and water water treatment plant expansion $ 41,000,000 1 to 10 years Water Santa Margarita CSA 23- Santa Margarita undersized pipelines, pipeline loops $ 1,500,000 n/a Water Templeton Templeton Community Services
District
new sewer force main needed; water supply availability is a limitation and a Nacimiento Recharge and Retrieval Project is needed to add water to the District water system (will include a new pipeline turnout, recharge basin, water filtration and two new wells)
$ 8,000,000 2027 or later
F-1 Appendix D: 2023 HIP Projects 3
Working With the Market:
Understanding and Supporting
Affordable-by-Design Housing
in San Luis Obispo County
Prepared for
San Luis Obispo Council of Governments
July 12, 2023 | PUBLIC REVIEW DRAFT
Should include the ECO
logo and the client /
project logo (attached,
along with branding
guidelines)
Acknowledgements
ECONorthwest prepared this report for the San Luis Obispo Council of Governments (SLOCOG). ECONorthwest and SLOCOG thank those who helped develop the Affordable-byDesign Study.
Housing Action Team
• Andrew Perez, Arroyo Grande
• Ani Garibyan, County of SLO
• Cory Hanh, Pismo Beach
• Darcy Delgado, Paso Robles
• Katie Banister, Paso Robles
• Kelly Gleason, Atascadero
• Kyle Bell, City of SLO
• Megan Martin, Grover Beach
• Nancy Hubbard, Morro Bay
• Phil Dunsmore, Atascadero
• Rafael Castillo, Grover Beach
• Teresa McClish, City of SLO
Local Housing Industry Experts that provided input
• Abbott | Reed Inc.
• Z Villages Management and Development
• Coastal Community Builders
• Ambient Communities
• Midland Pacific Homes
• People’s Self-Help Housing
• Housing Authority of SLO (HASLO)
• Paso Robles Housing Authority
• North San Luis Obispo County Association of
Realtors
• California Association of Realtors Region 31
• Compass Real Estate
• San Luis Obispo County Housing Trust Fund
• Habitat for Humanity
• Home Builders Association
• YIMBY
• SLO Chamber of Commerce
• South County Chamber of Commerce
• Morro Bay Chamber of Commerce
• Paso Robles Chamber of Commerce
• League of Women Voters
• Kovesdi Consulting
• Covelop
• Specialty Construction
• Wallace Group
• The HRM Corp.
• Ten Over Studio
• People's Self-Help Housing
• RRM Design Group
• Vivian Hanover Ventures Real Estate
• California Polytechnic University
• First American Title Company, San Luis Obispo
• Omni Design Group
• Midland Pacific Homes
• NKT Commercial
• San Luis Obispo County Housing Trust Fund
SLOCOG
• Sara Sanders
Consulting Team (ECONorthwest)
• Becky Hewitt
• Emmanuel Lopez
• Rasik Hussain
• Jamil Ditter
Table of Contents
TABLE OF CONTENTS
Executive Summary ................................................................................................................i Introduction ..........................................................................................................................1 Part 1: Understanding ABD Housing in SLO County.................................................................2 Identifying Examples and Characteristics of ABD Housing ................................................................2 Market and Development Feasibility Analysis...............................................................................10 Conclusions on Market and Development Conditions for ABD Housing in SLO County ....................15 Part 2: Supporting ABD Housing in SLO County.....................................................................17 Barriers to ABD Housing ...............................................................................................................17 Potential Policy Measures to Support ABD Housing.......................................................................18 Conclusion...........................................................................................................................32 Regional Housing and Infrastructure Plan: Affordable-by-Design Study i
EXECUTIVE SUMMARY
Purpose
This study, prepared for the San Luis Obispo Council of Governments (SLOCOG) by ECONorthwest, considers what types of housing could be “affordable-by-design” (ABD) in San Luis Obispo County and how jurisdictions in the county could support this type of development. ABD housing is defined for this study as housing that is affordable to low- or moderate-income households (earning less than 120% of area median income [AMI]) without subsidies or price/rent restrictions. ABD housing is one potential component of an overall strategy to meet jurisdictions’ regional housing need allocation (RHNA) targets; this study does not address other strategies to meet housing needs for low- or moderate-income households or to meet housing needs for other income categories.
What housing is, or could be, affordable-by-design in San Luis Obispo County? Based on a review of housing market data from CoStar and Redfin, ECONorthwest identified recent developments within San Luis Obispo (SLO) County that appear to meet the ABD criteria for this study. Few recent market-rate developments (built within the last five years) in SLO County appear to have rents or sales prices that are affordable to households earning less than 120% of AMI.
▪ Rental housing examples: The available data suggests a few newer apartment buildings may meet the affordability criteria for some or all units.1 Among these example apartments, many of the unit types that met the affordability criteria were for smaller units (e.g., relatively small studios and one-bedroom units). In some cases, larger units within the same development did not meet affordability criteria even when smaller units did. The example developments all were three-story walk-up apartments, but other three-story apartment developments built around the same time did not meet the affordability criteria.
▪ For-sale housing examples: The only recently built for-sale housing identified as meeting ABD criteria in SLO County were newer manufactured homes in manufactured home parks.2 Although there have been some recent for-sale housing developments that were intended and marketed as “affordable by design,” their sales prices exceeded the limit set by SLO County for moderate income households. 1 Due to data limitations, some of the identified examples may reflect lower average rents due to rent-restricted units provided to meet inclusionary housing requirements. 2 After accounting for the space rent that these homes would pay in a manufactured home park, even these examples may not all meet affordability criteria for moderate-income households.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study ii ECONorthwest also interviewed several local housing developers. These interviews helped identify barriers to developing ABD housing in SLO County. Several interviewees, upon reviewing the target sales prices, noted that it would be difficult or impossible to meet the sales price targets with any type of new market-rate for-sale housing in SLO County.
ECONorthwest also looked to other regions in California and the United States for examples of market-rate housing developments that offered lower rents or sales prices than typical for that market. This search yielded several examples of developments with small units, simple design and construction, and/or lower-cost locations that allowed them to achieve lower prices or rents than most new construction in their area.
Based on the local and national market research and input from local developers, ECONorthwest selected three illustrative example developments most likely to meet ABD criteria in SLO County for further analysis of how affordability and development feasibility could vary in different parts of SLO County:
▪ A 3-story walk-up apartment with typical unit sizes (roughly 880 sq. ft. per unit on average) and typical site layout for the region
▪ A more compact 3-story walk-up apartment with smaller unit sizes (roughly 620 sq. ft. per unit on average), less parking, and less landscaping/setbacks ▪ A 4-story microunit development with very small units (roughly 300 sq. ft. per unit on average) and no parking
Given local market conditions and developer input, the for-sale examples from other regions were unlikely to be viable or affordable in SLO County and were not further analyzed.
This analysis suggested that microunits can help achieve affordability for moderate-income households in the most expensive parts of the county and could be viable to develop in dense, walkable areas where potential renters would be willing to forego owning a car or having convenient parking. Compact walk-up apartments appear to offer a balance that could be both affordable and potentially feasible in some parts of the county. In lower-cost parts of the county, market rents may be affordable to moderate-income households even for larger units but may not be high enough to cover the cost of new construction. Overall, the rental market may be able to produce ABD housing in at least some parts of the County and is likely within a range where regulatory changes could make a difference. However, on the for-sale side, the gap between market sales prices and the target sales prices for moderate-income households is likely too large to overcome through design and regulatory measures alone.
How can jurisdictions in San Luis Obispo County support affordable-by-design housing? For jurisdictions that identify ABD housing as a way to meet part of their RHNA obligations and local housing needs, there are a variety of ways to facilitate this type of development without providing direct financial subsidy or imposing rent/price limits. Based on stakeholder feedback, ECONorthwest and SLOCOG identified six policy areas for further evaluation:
Regional Housing and Infrastructure Plan: Affordable-by-Design Study iii
1. Objective Design Standards
2. Ministerial Approvals and Streamlined Approval Processes
3. Density Limits and Parking Requirements
4. Zoning Vacant Land for Multifamily Housing
5. Aligning Infrastructure Investments with Land for Multifamily Housing
6. Adjusting Impact Fee Policies or Rate Structures to Incentivize ABD Housing Based on current planning practices among the SLOCOG jurisdictions and research on how other jurisdictions outside SLOCOG have approached these policy areas, ECONorthwest developed recommendations for SLOCOG jurisdictions to consider in support of ABD housing within each of these six policy areas:
Objective Design Standards
▪ Adopt simple objective design standards (ODS): Avoid overly detailed requirements when adopting ODS, and provide flexibility where possible (e.g., through a menu-based approach).
▪ Simplify minor adjustments: Offer a process for minor deviations from the ODS that can still be reviewed by staff.
Ministerial Approvals and Streamlined Approval Processes ▪ Expand eligibility for Ministerial Approvals: For jurisdictions that currently limit availability of ministerial approvals based on the number of units, this threshold could be increased (e.g., to 150 units) or eliminated for multifamily developments in medium and high-density residential zones.
▪ Have staff review projects using ODS: Even if the review is not considered truly ministerial, avoiding having a body accustomed to doing discretionary reviews serve as the approval body for projects subject to ODS could help streamline the process and avoid raising concerns that cannot be addressed.
Density Limits and Parking Requirements
▪ Adjust density limits in high-density residential and mixed-use zones: This could take several different forms:
▪ For density limits expressed in dwelling units per acre, increase the maximum density allowed by-right. Allowing at least 35 units per acre will generally allow for three-story walk-up apartment development, which may meet ABD criteria. Higher densities may be appropriate for downtown areas and mixed-use development. ▪ Use floor area ratio (FAR) or other physical form limits (e.g., height) to regulate the amount of development. This can serve as an incentive for building smaller units. ▪ Use fractional density or a density bonus to encourage smaller units. ▪ Reduce or eliminate parking minimum requirements for smaller units: Require less than one space per unit for small units and/or exempt microunits in downtown or mixed-use areas from parking requirements.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study iv Zoning Vacant Land for Multifamily Housing
▪ Zone vacant buildable sites large enough to accommodate multifamily development:
Zone buildable sites to allow by-right at an appropriate density. Ideally, this would include sites over an acre with access to infrastructure.
Align Infrastructure Investments with Land for Multifamily Housing ▪ Use the ongoing HIP process to prioritize infrastructure investments: Use the HIP process and prioritize investments that can unlock multifamily development in appropriate areas.
Adjusting Impact Fee Policies or Rate Structures to Incentivize ABD Housing ▪ Scale by unit size: Wherever reasonable, adjust impact fees by unit size to reflect lower impacts from smaller units. This could also mean increasing fees for larger units so that the change is revenue neutral.
▪ Defer collection: Allow deferral of the impact fee until occupancy for multifamily development regardless of whether it includes affordable units. ▪ Adjust for infill locations: Set fee rates lower where infrastructure needs are lower due to proximity to existing facilities. This can offset some of the higher cost of building in close-in, more developed areas.
These recommendations should be considered alongside other housing strategies to meet local housing needs and RHNA targets based on each jurisdiction’s needs, market conditions, and existing policy context.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 1
INTRODUCTION
The intention of the Affordable-by-Design (ABD) Study is to determine whether certain types of market-rate housing units are likely to be affordable to low- or moderate-income households in San Luis Obispo County “by design” and what jurisdictions in San Luis Obispo County can do to support this type of housing. Identifying physical characteristics that are commonly associated with the targeted level(s) of affordability could allow the jurisdictions to count these developments toward RHNA requirements in annual reports to Housing and Community Development (HCD) and align local policies to support this type of housing production.
For the purposes of this study, “affordable by design” is defined as new housing that is not income or rent restricted, but where typical market rents or sales prices would be affordable to low or moderate-income households (earning 50-120% of San Luis Obispo County’s AMI). The study encompasses the seven incorporated Cities and unincorporated San Luis Obispo (SLO) County.
The study included the following components:
Part 1: Understanding ABD Housing in San Luis Obispo County ▪ Identify common physical characteristics for ABD housing based on a review of market data and development examples from SLO County as well as other regions. ▪ Market and financial feasibility analysis to determine whether housing built with the identified physical characteristics would meet ABD criteria and be financially feasible for a market-rate developer to build in the different parts of the county.
Part 2: Supporting ABD housing in San Luis Obispo County ▪ Identification of barriers to ABD development and a range of potential policy measures that could help support ABD housing based on interviews with local housing developers and ECONorthwest’s analysis.
▪ Stakeholder feedback on the study’s findings and on priorities for policy measures to explore further through this study, resulting in selection of six policy measures for further evaluation.
▪ Additional analysis of the selected policy measures, including a survey of current planning practices among the SLOCOG jurisdictions related to these policies and research on how other jurisdictions outside SLOCOG have implemented the selected policy measures.
▪ Draft recommendations for SLOCOG jurisdictions to consider in support of ABD housing.
The balance of this report summarizes the results of this analysis and the recommended policy measures for consideration.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 2 PART 1: UNDERSTANDING ABD HOUSING IN SLO COUNTY
Identifying Examples and Characteristics of ABD Housing Rent and Sales Price Limits for ABD Housing in SLO County San Luis Obispo County’s published rent and sale price limits by income level define the rent and price range affordable at this income level (see Figure 1).3 Figure 1: San Luis Obispo County’s Rent and Sale Price Limits (May 2022) Source: San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 20224
3 The City of San Luis Obispo has its own way of calculating maximum sale prices for its inclusionary housing program, which results in somewhat higher maximum sales prices. However, for consistency across the County, this analysis uses the County’s price limits.
4 “Affordable Housing Standards.” San Luis Obispo County Department of Planning and Building, June 1, 2022. https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-andDocuments/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 3 Examples of ABD Rental Housing
Rental Housing Examples from SLO County
ECONorthwest used data from CoStar, a proprietary market data service, to identify recently constructed (within the last five years) market-rate multifamily rental housing in SLO County where rents appear to meet the rent limits shown in Figure 1 by unit type (number of bedrooms). This search yielded five properties where at least some unit sizes appear to meet moderate-income rent limits.5 Properties were included as examples even if some unit sizes did not meet affordability criteria. These example properties are shown in Figure 2 below, and their characteristics are summarized in Figure 3.
Figure 2: Examples of Rental Housing in SLO County that May Meet or Partially Meet ABD Criteria
Source: CoStar
5 Note that CoStar reports rents on average by unit type and does not separate rents for affordable units from those for market-rate units within mixed-income buildings.
Connect SLO La Plaza
Ramona Gardens Laurel Lane
The Junction
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 4 Figure 3: Characteristics of Rental Housing Examples in SLO County that May Meet or Partially Meet ABD Criteria
Source: ECONorthwest analysis of CoStar data, February 2023.
Connect SLO La Plaza Laurel Lane Ramona
Gardens The Junction
Jurisdiction San Luis
Obispo Atascadero San Luis Obispo Grover Beach San Luis Obispo Land Area (AC) Not Available 1.83 Not Available 0.51 1.58 # Units 78 42 22 19 69
# Stories 3 3 3 3 3
Studio
Affordability
Above
Moderate Moderate N/A Moderate Above Moderate
Studio Unit
Count 45 1 0 1 43
Studio Unit Size 477 sf 534 sf N/A 400 sf 531 sf
1 BR
Affordability Moderate* Moderate Low/ Moderate* Moderate Moderate* 1 BR Unit Count 26 27 1 4 17
1 BR Unit Size 664 sf 721 sf 514 sf 800 sf 568 sf
2 BR
Affordability
Above
Moderate
Above
Moderate Moderate* Moderate Above Moderate
2 BR Unit Count 7 12 3 14 9
2 BR Unit Size 1,032 sf 1,537 sf 877 sf 800 sf 799 sf
3 BR
Affordability N/A Above Moderate
Above
Moderate N/A N/A
3 BR Unit Count 0 2 18 0 0
3 BR Unit Size N/A 2,808 sf 1,288 sf N/A N/A
*CoStar does not isolate market rents in mixed-income buildings. Reported average rents may be artificially low due to some units being below market rate, particularly where inclusionary housing regulations apply.
This analysis suggests that some new apartments offer units that are affordable at moderateincome rents in at least some parts of the County. In communities with inclusionary housing policies, this may be skewed by mixed-income buildings. Among these examples, one-bedroom units were most likely to be affordable and no three-bedroom units met affordability criteria.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 5 This suggests that even for developments that do include some units affordable to moderateincome households, the largest units are unlikely to meet affordability targets.
A review of the physical characteristics of these developments shows that design plays a role in making them affordable, but it does not guarantee affordability. Most of the examples are three-story buildings, and most have small average unit sizes; however, many other apartments built in the County are also three stories and not all small units are affordable to moderate-income households.
ABD Rental Housing from Other Regions
ECONorthwest looked at examples of other types of rental housing recently developed in other housing markets for housing types that could potentially meet ABD criteria if built in SLO County. The primary type of housing that consistently achieved moderate-income affordability (or below) in similar housing markets is microunits. These typically have:
▪ Unit sizes between 150 and 350 sq. ft. with individual kitchenettes and shared kitchens6 ▪ No vehicle parking but onsite bike storage
▪ Generally four or more stories, high density, with minimal setbacks/landscaping ▪ Highly walkable and desirable locations
Figure 4: Examples of Microunit Developments
Image credits: Alcove PDX (https://pdxalcove.com); Stenberg Hart (https://www.steinberghart.com/design/projects/mccadden-place-micro-units/) 6 Because of the shared kitchens, groups of four to eight microunits are often regulated as a single-dwelling unit under the zoning codes where these developments have been permitted.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 6 Examples of ABD For-Sale Housing
ABD For-Sale Housing Examples from SLO County
ECONorthwest used sales transaction data from Redfin to identify sales within the last year of recently constructed housing units that sold for less than the sales price threshold listed in Figure 1. Only manufactured housing in manufactured home parks met these target price points (see examples in Figure 5).
7 Figure 5: Examples of ABD For-Sale Housing in SLO County Source: Redfin
A few small detached homes (such as the examples shown in Figure 6) came close to meeting the County’s affordability standards and would meet the County’s workforce housing price limits, but they exceeded the County’s moderate-income sales price limits.
Figure 6: Examples of Small Detached Homes Close to ABD Sales Limits Source: Redfin
7 Because these manufactured homes must pay space rent for the manufactured home park, when this space rent is accounted for, even these units may not be affordable for moderate-income households.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 7 ABD For-Sale Housing from Other Regions
Looking at examples from other regions, ECONorthwest identified three types of for-sale housing that tended to offer the lowest price points in other relatively high-cost housing markets. These include the following:
▪ Very small detached units (roughly 350-800 sq. ft.) with shared yards and clustered parking. The smallest units may be affordable at close to 120% of AMI in that market, but the most comparable units in SLO County exceed the target price. It is possible that the smallest detached units (e.g., under 800 sq. ft.) could meet the affordability targets in some cases.
Figure 7: Examples of Very Small Detached Units from Other Markets Image credits: Redfin8; Connect Architecture9; South Park Cottages10 ▪ Small condo units (roughly 325-600 sq. ft.) with little or no onsite parking. These can be affordable for moderate-income households in portions of some high-cost regions, but may not be viable in SLO County’s market given the small size and lack of parking.
Figure 8: Examples of Small Condo Units from Other Markets Image Credits: Portland’s Best Real Estate11; Redfin12
8 https://www.redfin.com/OR/Bend/61301-Benham-Rd-97702/unit-1/home/167021238 9 https://www.connectarchitecture.us/posh-pockets
10 https://southparkcottages.com/
11 https://www.portlandsbestrealestate.com/division-43-studio-condo 12 https://www.redfin.com/OR/Portland/7360-N-Atlantic-Ave-97217/unit-3/home/185141446 Regional Housing and Infrastructure Plan: Affordable-by-Design Study 8 ▪ Simple condo development with simple design, medium-sized units (roughly 600-1000 sq. ft.), little or no onsite parking, and few shared amenities. These units can be affordable to moderate-income households in portions of some high-cost regions but may not be viable in SLO County’s market given high development costs.
Figure 9: Examples of Simple Condo Developments from Other Markets Image Credits: Redfin13
▪ Small town house units (roughly 1,000-1,600 sq. ft.). These can be affordable to moderate-income households in portions of some high-cost regions, but comparable units in SLO County exceed the target price.
Figure 10: Examples of Small Town House Units from Other Markets Image Credits: Redfin14
13 https://www.redfin.com/CO/Federal-Heights/1401-W-85th-Ave-80260/unit-B101/home/176995897; https://www.redfin.com/OR/Portland/1801-N-Rosa-Parks-Way-97217/unit-303/home/172577477; https://www.redfin.com/OR/Portland/5025-N-Minnesota-Ave-97217/unit-102/home/185246763 14 https://www.redfin.com/CO/Denver/2206-E-38th-Ave-80205/home/185222737; https://www.redfin.com/OR/Portland/7308-NE-11th-Ave-97211/home/185109359 Regional Housing and Infrastructure Plan: Affordable-by-Design Study 9 ▪ Smaller single-family detached homes (“starter homes”) that are typically threebedroom units roughly 1,200-1,500 sq. ft. These can be affordable to moderate-income households in moderate-cost areas (e.g., California’s Central Valley), but comparable units in SLO County exceed the target price.
Figure 11: Examples of Small Single-Family Detached Homes from Other Markets Image Credits: Redfin15
Based on developer interviews and review of market data from SLO County, none of the examples of ABD for-sale housing from other markets seemed likely to be viable as a way to deliver ABD for-sale housing in SLO County, and they were not further evaluated.
Overall, the data suggests that SLO County market conditions are unlikely to support new forsale housing at prices affordable to moderate-income households, with the possible exception of manufactured housing in parks. A few developments have attempted to produce ABD forsale housing, but even with very small homes, prices are still too high for the moderate-income target price range. In addition, even if jurisdictions were to change policies, factors that make for-sale housing more affordable in other areas may not translate to the SLO County market (e.g., lower land cost, no parking, few amenities, microunits). 15 https://www.redfin.com/CA/King-City/611-Cecily-St-93930/home/167240703; https://www.redfin.com/CA/Shafter/9710-Amberdale-Way-93263/home/178358767 Regional Housing and Infrastructure Plan: Affordable-by-Design Study 10 Market and Development Feasibility Analysis
Potential ABD Housing Types Selected for Analysis
Based on the review of ABD examples from SLO County and other market areas, ECONorthwest selected three development “prototypes” that typify the physical characteristics that showed potential viability and affordability to moderate-income households in the San Luis Obispo market:
▪ A 3-story walk-up apartment with typical unit sizes and site layout for the region ▪ A more compact 3-story walk-up apartment with smaller unit sizes, less parking, and less landscaping/setbacks
▪ A 4-story microunit development with very small units and no parking Additional characteristics and physical features assumed for these prototypes are listed in Figure 12.
Figure 12: ABD Prototype Assumptions
Source: ECONorthwest
Description 3-story walkup - standard
3-story walk-up -
compact
4-story
microunits
Site Size (sf) 65,340 65,340 8,000
# of Units 51 91 71
Density (DU/Ac) 34.0 60.7 386.6
Parking location surface surface none
Parking ratio 1.54 1.00 0.00
Unit Mix (% of units)
Studio 5% 30% 100%
1-bed 40% 40% 0%
2-bed 50% 30% 0%
3-bed 10% 0% 0%
Unit Size (net sf)
Studio 500 425 300
1-bed 675 575
2-bed 1,000 875
3-bed 1,350
Average Unit Size 880 620 300
Note: This analysis treats each microunit as its own unit, although under many codes they would not be considered stand-alone units because of their shared kitchens.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 11 Market Conditions
While the affordability targets and AMI are set countywide, the market conditions vary across the county. The analysis addresses this by dividing the county into different market areas for purposes of the analysis (see Figure 13). The analysis focuses on four market areas:
▪ North Coast (Los Osos, Morro Bay, Cayucos, Cambria, San Simeon) ▪ North County (Santa Margarita, Atascadero, Templeton, Paso Robles, San Miguel) ▪ South County (Pismo Beach, Grover Beach, Arroyo Grande, Oceano, Nipomo) ▪ Central County (San Luis Obispo, Avila Beach)
East County is not included in the analysis because there is little development or development opportunity in that area.
Figure 13: SLO County Market Areas
ECONorthwest estimated the market rents in each market area for each prototype based on the most comparable developments and adjusted to reflect differences between market areas and prototypes. The estimated market rents for each area are listed in Figure 14, along with the relevant moderate-income rent limit by unit type.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 12 Figure 14: Estimated Market Rents by Market Area and Prototype Source: ECONorthwest analysis based on CoStar data; San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 202216
Region -
Bedroom Size
3-story walkup - standard3-story walkup - compact4-story microunits
ModerateIncome Rent
Limit
Central County $2,750 $2,327 $1,470 $0
Studio $2,250 $2,083 $1,470 $2,047
1-bed $2,430 $2,156 - $2,329
2-bed $2,950 $2,800 - $2,597
3-bed $3,375 - - $2,877
North Coast $1,925 $1,513 $956 $0
Studio $1,575 $1,354 $956 $2,047
1-bed $1,701 $1,402 - $2,329
2-bed $2,065 $1,820 - $2,597
3-bed $2,363 - - $2,877
North County $2,465 $1,972 $1,176 $0
Studio $1,800 $1,594 $1,176 $2,047
1-bed $2,147 $1,898 - $2,329
2-bed $2,650 $2,450 - $2,597
3-bed $3,240 - - $2,877
South County $2,289 $1,747 $956 $0
Studio $1,450 $1,275 $956 $2,047
1-bed $1,856 $1,639 - $2,329
2-bed $2,600 $2,363 - $2,597
3-bed $3,038 - - $2,877
Note: market rents reflect 2023 market conditions with an estimated 3% annual escalation prior to opening.
These rents are shown graphically in comparison to the moderate-income threshold in Figure
15. 16
“Affordable Housing Standards.” San Luis Obispo County Department of Planning and Building, June 1, 2022. https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-andDocuments/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf Regional Housing and Infrastructure Plan: Affordable-by-Design Study 13 Figure 15: Estimated Market Rents by Market Area and Prototype Compared to Moderate-Income Rent Limit
Source: ECONorthwest analysis based on CoStar data; San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 202217
Figure 15 displays the expected rents for each potential ABD housing type against the rent limits for moderate housing. If a bar is above the blue line, that means the monthly rent is predicted to be above the moderate-income rent limit. This highlights that while many of the prototypes are estimated to offer market rents below the moderate-income threshold, this may not be the case for all prototypes/unit sizes in all market areas.
Development Feasibility Analysis
ECONorthwest’s financial feasibility analysis uses a metric called “return on cost” (ROC), which reflects the income potential of the completed development divided by the total cost of development.18 This ratio is often used as an initial indicator of development feasibility for rental developments, as it provides a preliminary indication of whether the completed property will provide competitive financial returns that could attract investors and meet loan underwriting requirements. Because both lenders and investors will expect higher returns for riskier investments, market areas that have stronger demand fundamentals will likely have a lower threshold for ROC to make development viable. Thus, the target ROC is assumed to be 17 “Affordable Housing Standards.” San Luis Obispo County Department of Planning and Building, June 1, 2022. https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-andDocuments/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf 18 Net operating income (NOI), the revenue after accounting for vacancy and operating expenses.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 14 higher in smaller markets (North County and South County) than in Central County (North County is estimated to fall between these bookends).
ECONorthwest used cost information calibrated based on interviews with local developers and research on average local fee amounts in SLO County to estimate development costs by prototype.
Figure 16: Estimated Return on Cost by Prototype and Market Area Source: ECONorthwest analysis
Because costs and market conditions can vary substantially between sites even within the same market area and for the same prototype, these results should be taken as a general indication of the relative feasibility of different prototypes, not as an absolute indication that a given prototype will consistently be feasible or infeasible in a given area. To account for the inherent uncertainties associated with this type of generalized analysis, ECONorthwest summarized the results based on how likely they indicate a given prototype is to meet affordability and feasibility criteria. The most feasible housing types and locations are 4-story microunits in Central County and compact 3-story walk-ups in North County, as shown in Figure 17.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 15 Figure 17: Summary of Affordability and Feasibility Results by Prototype and Market Area
Source: ECONorthwest analysis
Conclusions on Market and Development Conditions for ABD Housing in SLO County
The key takeaways from this analysis are summarized below by market area.
Central County
• Smaller units
help achieve
affordability
• Market likely to
support
feasibility
North Coast
• Market rents
provide
affordability
• Feasibility is
difficult
North County
• Market rents
likely affordable
except for
largest units
• Market likely to
support except
for the smallest
units
South County
• Market rents
likely affordable
except for
largest units
• Market support
is borderline
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 16 Overall, it appears that the rental market is close to being able to achieve ABD housing production in at least some parts of the County and is likely within a range where regulatory changes could make a difference. While ABD housing may not require subsidy, it may not be able to absorb inclusionary zoning requirements at the targeted moderate-income rents.
Affordability through smaller unit sizes may not meet needs of larger households, and market rents may not stay within target affordability range over time, but delivering more lower-cost units to the market can help maintain the affordability of market-rate housing over time, and smaller households may benefit from greater availability of small units.
In the for-sale housing market, prices are too far above the moderate-income affordability level for the market to deliver new ABD for-sale housing with regulatory changes alone. Increasing housing production overall can help bring supply and demand into balance and potentially make ABD achievable over the longer term.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 17 PART 2: SUPPORTING ABD HOUSING IN SLO COUNTY
Barriers to ABD Housing
To understand how to support ABD housing, it is essential to understand what makes it possible for the market to produce lower-cost housing and how the public sector can influence this. These factors are illustrated in Figure 18 and Figure 19.
Figure 18: Factors that Allow the Market to Produce Lower-Cost Housing Source: ECONorthwest
Figure 19: Public Sector Influence on Market's Ability to Produce Lower-Cost Housing Source: ECONorthwest
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 18 In sum, it takes a confluence of multiple factors for the market to produce lower-cost housing, and local regulations and fees can have an impact on the market’s ability to achieve those factors.
Looking specifically at SLO County, ECONorthwest’s interviews with local housing developers, market research, and development feasibility analysis suggested the following barriers to ABD housing:
Market Barriers
▪ Land cost
▪ Demand for high-end housing
▪ Construction costs
▪ Demand for parking
Regulatory Barriers
▪ Discretionary review
▪ Density caps
▪ Minimum unit sizes
▪ Parking requirements that exceed market demand
▪ Impact fees, inclusionary zoning
▪ Required infrastructure improvements
Potential Policy Measures to Support ABD Housing
Overview
ECONorthwest identified a range of potential policy measures jurisdictions could consider to support development of ABD housing. These generally fall under the following categories:
▪ Streamline development review and permitting.
▪ Align development standards to support ABD housing.
▪ Allow ABD housing in cost-effective locations.
▪ Adjust impact fee rates and policies to incentivize ABD housing.
Based on feedback from multiple different stakeholder groups, including home builders, market-rate housing developers, affordable housing providers, other housing advocates, and local planners, SLOCOG and ECONorthwest identified the following six measures for additional research and evaluation:
7. Objective Design Standards
8. Ministerial Approvals and Streamlined Approval Processes
9. Density Limits
10. Zoning Vacant Land for Multifamily Housing
11. Aligning Infrastructure Investments with Land for Multifamily Housing
12. Adjusting Impact Fee Policies or Rate Structures to Incentivize ABD Housing Regional Housing and Infrastructure Plan: Affordable-by-Design Study 19 Having identified these measures as priorities, ECONorthwest distributed a survey to the planning departments of the eight jurisdictions in SLOCOG—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, City of San Luis Obispo, and County of San Luis Obispo—to gather information on how they currently address these topics. The results of the survey are incorporated into the sections that follow.
Finally, to illustrate how other jurisdictions have approached some of the policy measures highlighted to support ABD housing, ECONorthwest collected information on practices by jurisdictions in California and other states that were recognized as “prohousing.” These examples are also integrated into the following sections.
State Housing Laws and ABD Housing
Many state housing laws aim to remove barriers to developing affordable housing; however, these do not necessarily apply to ABD housing. Figure 20 summarizes how key state laws and recent bills relate to ABD housing as defined for this study.
Figure 20: Summary of State Housing Law Applicability to ABD Housing Source: ECONorthwest research and state laws as noted below Legislation Relevant Eligibility Criteria
(ABD Eligible?)
Benefits for Qualifying
Housing Developments
SB 35 (2018)
ABD not eligible
• At least 10% or 50% of units must be affordable
depending on which income categories
jurisdictions have failed to produce.
• Affordable units must be for less than 80% AMI
only, requires lasting affordability restrictions.
• Jurisdictions that have not met RHNA targets
(applies to most SLOCOG jurisdictions)
• Ministerial approvals
• Objective design standards
(ODS)
SB 330
(2019) and
the Housing
Accountability
Act (HAA)
ABD potentially eligible
• Housing for very low, low-, or moderate-income
households qualifies for additional protections.
• One option is if 100% of units are affordable to
moderate-income (80-120% of AMI) or middleincome (<150% of AMI) households; units for moderate-income households must be affordable
at 100% of AMI.
• Lasting affordability requirements apply only to
units for very low or low-income households
• Locks in regulations and
fees when a preliminary
application is submitted.
• Burden of proof is on the
jurisdiction if denying the
application; limited basis
for denial if application
complies with objective
standards.
• Maximum review timelines
AB 2345
(2020) and
the Density
Bonus Law
ABD not eligible
• Multiple affordability criteria: for-sale housing can qualify if at least 10% of units are affordable to
moderate-income (80-120% of AMI) households.
• Requires lasting affordability restrictions (at least 45 years)
• Increased density, reduced
setbacks, other zoning
modifications
In sum, ABD housing may be eligible for increased protections from being denied or having density reduced under the HAA if it meets the requirements for moderate-income housing, but Regional Housing and Infrastructure Plan: Affordable-by-Design Study 20 it would not qualify for ministerial approvals, ODS, or zoning concessions under SB 35 or the density bonus law.
Objective Design Standards
Description
Objective design standards (ODS) are defined in California State Law as standards which “involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark.”
While basic development standards such as lot size requirements are typically objective, many jurisdictions apply design requirements to new housing development that introduce subjectivity, considering compatibility with surrounding structures or otherwise leaving room for interpretation of whether a development has met the requirements through ambiguous language. ODS are often related to building design elements, such as window size and location, roof lines, building articulation, etc. Having objective design standards can streamline the process of getting planning approvals by establishing a common set of expectations for developers and allowing development to avoid lengthy discretionary review processes.
While SB 35 does not apply to ABD housing, as noted above, jurisdictions could potentially offer ABD housing the option to use the same ODS applicable to SB 35–eligible development.
HCD published an objective design standards tool kit for California jurisdictions in 2021 with guidance and examples.
19 Current Practice for SLOCOG Jurisdictions
Only the City of San Luis Obispo and Grover Beach have adopted specific ODS. In the limited time since these standards were adopted, they have been used a few times in Grover Beach but have not yet been used successfully in the City of San Luis Obispo. Grover Beach allows "modification to standards" to respond to site conditions, which may make it easier for development to comply with most of the standards while seeking flexibility where needed. San Luis Obispo County uses only objective basic development and site design standards and does not have building design standards; therefore, all development uses objective development standards. Three additional jurisdictions—Atascadero, Paso Robles, and Morro Bay—are in the process of developing standards. A table of current ODS practices among SLOCOG members is included in Figure 21 below.
19 California HCD, “Approaches and Considerations for Objective Design Standards,” January 2021, https://hcdcagov.app.box.com/s/baznxdyweq6a8txcrb22li0gogqodzz6 Regional Housing and Infrastructure Plan: Affordable-by-Design Study 21 Figure 21: Summary of Responses from SLOCOG Jurisdictions regarding Objective Design Standards
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction ODS Status
Eligibility for
ODS
Topics Addressed Usage
of ODS
Atascadero In progress
All multifamily
and mixed-use
developments
TBD N/A
City of San
Luis Obispo
Adopted
(2021)
SB-35 projects
only
Specific building & site design
standards (materials, window
trim, building length, window
placement, roof design,
articulation, landscaping)
None to
date
County of San
Luis Obispo Adopted Not limited
Basic development & site design
standards (no building design
standards)
All
projects
Pismo Beach Not Available N/A N/A N/A
Paso Robles In progress TBD TBD N/A
Morro Bay In progress TBD TBD N/A
Arroyo Grande Not Available N/A N/A N/A
Grover Beach Adopted
(2022)
All singlefamily,
multifamily,
and mixed-use
developments
Site & structure design (façade
articulation, entrances, ground
floor height, transparency,
building orientation, blank walls,
building materials, upper-story
windows, parking and access,
pedestrian circulation, etc.)
Modifications to standards
allowed
A few
highdensity
projects
Other Examples
Sacramento, CA
Sacramento, CA, received the first Prohousing Designation from the California Department of Housing and Community Development in February 2022 for its housing reform efforts. These included establishing objective design standards for infill development of projects with two units or more, including additional dwelling units attached to single-unit housing.
Citrus Heights, CA
Citrus Heights was awarded a Prohousing designation from the State of CA for their use of objective design standards to spur development in their city. The designation was awarded for the city’s efforts to develop the Sunrise Tomorrow Specific Plan, a plan to convert a 100-acre Regional Housing and Infrastructure Plan: Affordable-by-Design Study 22 mall property to a mixed-use residential property.20 The plan zoned for new uses on the site, including multifamily residential, retail, and hotels, tripling the amount of development allowed on the site and providing the opportunity for 2,200 new units in a city that is 98% built out. The plan also introduced objective design standards for the Sunrise Tomorrow Specific Plan area, which will streamline future development.21 The city is currently experiencing challenges encouraging development on the site because it is owned by six different companies, but it is continuing to work with developers and the community to improve the site.
Oregon Model Development Codes
In Oregon, all “needed housing” (effectively all housing development that is designed to fulfill a housing need rather than a resort or short-term rental purpose) must have the option to be reviewed against only clear and objective standards. Oregon’s Department of Land Conservation and Development (DLCD) publishes a model development code for small cities to facilitate compliance with this and other state requirements and smart growth principles. The model code includes “Community Design Standards” that address building orientation and design as well as site design factors such as access and circulation, parking, and landscaping.
The residential building design standards provide clear and objective standards to address building orientation, articulation, inclusion of certain design features (using a menu approach), and an option to require house plan variety in new subdivisions. While the model code was last updated in 2012, it may provide a useful example for smaller cities considering ODS.22 Oregon’s middle housing model codes, published in 2020, also include clear and objective design standards applicable to middle housing.23
Eugene, OR
A study of multifamily development in Eugene, Oregon, evaluated whether public opposition expressed in a discretionary review process had an impact on development outcomes. It found that although the City allows most multifamily development by-right, 12% of multifamily development projects during the period analyzed (2010-2016) required a land use application.
The land use applications ranged from minor adjustments to site plan reviews to planned development applications. Applications most sought adjustments to building orientation and 20 Murillo, Alicia. “Six California Cities Earn State Prohousing Designation.” hcd.ca.gov. California Department of Housing and Community Development, December 15, 2022. https://www.hcd.ca.gov/about-hcd/newsroom/sixcalifornia-cities-earn-state-prohousing-designation. 21 citrusheights.net. “Sunrise Mall Specific Plan.” City of Citrus Heights, CA. Accessed June 20, 2023. https://www.citrusheights.net/1009/Sunrise-Mall-Specific-Plan. 22 Oregon Department of Land Conservation and Development, Oregon Model Development Code and User's Guide for Small Cities, 3
rd Edition (2012), https://www.oregon.gov/lcd/tgm/pages/model-code.aspx 23 Oregon Department of Land Conservation and Development, Large Cities Middle Housing Model Code, December 2020, https://www.oregon.gov/lcd/UP/Documents/OAR660046%20EXHIBIT%20B%20- %20Large%20Cities%20Middle%20Housing%20Model%20Code%2020201209.pdf Regional Housing and Infrastructure Plan: Affordable-by-Design Study 23 entrance standards, parking standards, building massing and façade standards, and access/circulation standards. While opponents of the projects raised concerns, including traffic increases, pedestrian safety, and neighborhood character, there was no evidence that these concerns resulted in changes to the development or design for the projects evaluated in the study. The study concluded that offering more flexibility on the standards that most caused challenges could reduce the need for land use applications.24 Preliminary Recommendations
▪ Adopt simple ODS: Avoid overly detailed requirements when adopting ODS and provide flexibility where possible (e.g., through a menu-based approach). ▪ Simplify minor adjustments: Offer a process for minor deviations from the ODS that can still be reviewed by staff.
Ministerial Approvals and Streamlined Approval Processes Description
Ministerial approvals refer to nondiscretionary staff-level approval of development projects.
Robust ministerial approval processes provide a faster process and lower fees for development review. California’s SB 35 requires cities and counties which have failed to meet their RHNA obligations to allow developments that include a certain percentage of affordable units and meet other criteria to proceed through a ministerial review process. 25 24 Seth Thompson, “Public Opposition to Increased Housing Density in Eugene, Oregon: How Opposition to Multifamily Housing Impacts the Built Environment,” University of Oregon Department of Planning, Public Policy, and Management, Masters of Community and Regional Planning, 2018 Professional Project, June 2018. https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/25087/SThompson_ExitProj_Final.pdf?sequence=1 &isAllowed=y
25 At least 50% of the proposed residential units should be affordable to households at 80% of AMI.
The project must net two or more new residential units.
The project must be zoned in the proper parcel and two-thirds of the project must be residential.
The location of the project may not be within a coastal zone, prime farmland, wetlands, a high fire hazard severity zone, hazardous waste site, a delineated earthquake fault zone, a floodplain, a floodway, a community conservation plan area, a habitat for protected species, or under a conservation easement.
The project does not demolish a historic building, a building where housing units have been occupied for the last 10 years, or a building subject to rent control.
The project must meet all objective design standards.
If the project is a private development project, it must pay prevailing wage, and if it is more than 50 units, it must use a skilled and trained workforce.
The project must not involve the subdivision of a parcel that is subject to the California Subdivision Map Act, unless the project pays prevailing wage and receives a low-income housing tax credit or uses a skilled and trained workforce.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 24 Current Practice for SLOCOG Jurisdictions
Most of the cities offered some form of ministerial approval for developers; two offered SB 35 ministerial approvals. The criteria or maximum number of units eligible for ministerial approvals in each jurisdiction are summarized in Figure 22 below.
Figure 22: Summary of Responses from SLOCOG Jurisdictions regarding Ministerial Approvals
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction What is the maximum number of units that can receive ministerial approvals outside of SB 35 provisions?
Atascadero 11 (unless on a designated site in the housing element) City of San Luis Obispo No max threshold
County of San Luis Obispo 38
Pismo Beach No Response
Paso Robles 1 outside of State intervention; 3 when including ADUs and JADUs; 4 utilizing SB9
Morro Bay 2 dwelling units and multifamily projects of 6000 sf or less, singlefamily homes under 2500 sf Arroyo Grande No Response
Grover Beach No cap per year, or within the jurisdiction. SB 35 unit limits are based on land use density controls.
The jurisdictions differ on processing times for ministerial approvals. The Cities of San Luis Obispo, Paso Robles, and Grover Beach gave the shortest timelines. All three gave initial review timelines of a maximum of 1 month while the County gave a minimum time period of 6 months. For nonministerial approvals the estimates differed widely, but they ranged from 3 months to 18 months.
Other Examples
Sacramento, CA
As noted previously, the City of Sacramento received recognition by the state for its housing reform efforts, which included several measures related to streamlining approvals, including allowing projects of up to 150 units to bypass the requirement for a public hearing and qualify Regional Housing and Infrastructure Plan: Affordable-by-Design Study 25 for ministerial approval. The city set a 90-day timeline for ministerial approval of these projects.26 It also allowed single-unit, duplex, and multiunit dwelling to be built by-right.27 Oakland, CA
The City of Oakland introduced a “one stop shop” for permits that coordinates between three permitting departments to streamline and simplify procedures for developers. The departments are Fire Prevention Services, Planning & Building, and Transportation. Oakland introduced the “one stop shop” in September 2021.28
Grand Rapids, MI
According to a study by the Terner Center, zoning reforms in Grand Rapids, MI, (which included upzoning, allowing a wider range of housing types by-right and other changes) found a balance between opportunities for community input and streamlined project approvals. “If projects conform to zoning and design guidelines, the project is approved within approximately six weeks. Moreover, it is nearly unheard of for the city to deny a project application, largely because complying with the city’s land use regulations has proven to be straightforward for developers. City officials noted that the predictability of their approval process has resulted in more interest in development in their community.”
Preliminary Recommendations
▪ Expand eligibility for ministerial approvals: For jurisdictions that currently limit availability of ministerial approvals based on the number of units, this threshold could be increased (e.g., to 150 units) or eliminated for multifamily developments in medium and high-density residential zones.
▪ Have staff review projects using ODS: Even if the review is not considered truly ministerial, avoiding having a body accustomed to doing discretionary reviews serve as the approval body for projects subject to ODS could help streamline the process and avoid raising concerns that cannot be addressed.
26 Herriges, Daniel. “Did Sacramento Just Approve the Best Local Housing Reform Yet?” Strong Towns, January 21, 2021. https://www.strongtowns.org/journal/2021/1/21/did-sacramento-just-approve-the-best-local-housing-reformyet. 27 “Sacramento Becomes First California Jurisdiction to Earn State Prohousing Designation.” California Department of Housing and Community Development, February 24, 2022. https://www.hcd.ca.gov/abouthcd/newsroom/sacramento-becomes-first-california-jurisdiction-to-earn-state-prohousing-designation. 28 “One-Stop Permit Center: In-Person & Expanded Digital Services,” City of Oakland, accessed June 26, 2023, https://www.oaklandca.gov/resources/one-stop-permit-center.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 26 Density Limits and Parking Requirements
Description
If an area is zoned to allow multifamily but the maximum density is too low, it can preclude efficient multifamily development. As noted above, while California jurisdictions are required to allow density bonuses and other regulatory concessions for qualifying affordable housing developments, this does not apply to ABD housing where units are market-rate but offer affordability for moderate-income households. Some jurisdictions use “fractional density,” in which small units are counted as a fraction of a unit for purposes of density calculations. This approach is more aligned with ABD housing. Other jurisdictions simply increase (or even remove) their maximum density standards for all housing to prioritize housing production.
Reducing or eliminating minimum parking requirements can also be a tool to encourage ABD development and can be an important complement to higher-density limits because achieving higher densities sometimes requires lower parking ratios (e.g., for the microunits and compact walk-up apartment prototypes analyzed in Part 1). Reducing parking requirements also eliminates a mandatory cost for developers and can lower rental costs for households in some cases. However, in areas where there is strong market demand for parking, developers may choose to build parking even if it is not required, or they may choose to build more than is required to meet market demand.
Current Practice for SLOCOG Jurisdictions
The survey asked the departments to list their jurisdictions highest-density zones and the maximum by-right density in those zones. Their answers are listed in Figure 23.
Figure 23: Summary of Responses from SLOCOG Jurisdictions regarding Multifamily Density
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction
Which zones in your jurisdiction allow the highest residential density? What is your maximum by-right density in these zones? Atascadero RMF-24 - 24 units per acre
City of San
Luis Obispo
C-D - 36DU/acre, C-C 36DU/acre
County of San
Luis Obispo
Residential Multifamily (density not specified)
Pismo Beach Our Residential Very High Density overlay zone. Once a property is rezoned with the overlay, it is 50 units per acre.
Paso Robles T4-N, T4-F, T4-NC, TC-1, TC-2, and RSC all allow up to 30 units/acre Morro Bay RH (Residential High Density). Currently 2 units by-right or Multifamily projects with total sf of 6,000 or less.
Arroyo Grande Multifamily Very High Density and mixed-use zones allow up to 25 du/acre Grover Beach No Response
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 27 The City of San Luis Obispo also utilizes fractional density for all zones outside the AG, C/OS, and R-1 zones. The City of Paso Robles also allows fractional density in some of its zones. The details are included in Figure 24 below.
Figure 24 Summary of Responses from SLOCOG Jurisdictions regarding Fractional Density
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction Housing Type Fractional Density
City of San Luis
Obispo
Studio and one-bedroom dwellings less than 600 sq. ft. .5 One-bedroom dwellings between 601–1,000 sq. ft. .66
Two-bedroom dwelling 1
Three-bedroom dwelling 1.5
Dwellings with four or more bedrooms 2
Paso Robles
Studio and one-bedroom dwellings less than 600 sq. ft. .5 One-bedroom dwellings 600–1,000 sq. ft. .66
Dwellings with two or more units 1
Other Examples
San Diego, CA
The City of San Diego introduced several changes to its density bonus program in 2018. The new program language included several provisions that offer bonuses for smaller units:29 ▪ A 10 percent density bonus for developments that do not go beyond the maximum permitted building footprint.
▪ A 100 percent density bonus for microunit production for developments that do not go beyond the permitted building footprint.
Cottage Grove, Oregon
The small city of Cottage Grove, Oregon, recently eliminated maximum density limits in its residential zones. Minimum lot size standards apply but do not scale with the number of units, meaning they are primarily a constraint on density for single-unit detached development.
Multifamily development is limited only by height and building coverage standards.30 29 “City of San Diego Density Bonus Regulations for Affordable Housing,” San Diego Housing Commission, accessed June 20, 2023, https://www.sdhc.org/doing-business-with-us/developers/density-bonus/. 30 City of Cottage Grove Municipal Code, Chapter 14.22 Residential Districts:
https://www.codepublishing.com/OR/CottageGrove/#!/CottageGrove14/CottageGrove1422.html#14.22.120 Regional Housing and Infrastructure Plan: Affordable-by-Design Study 28 San Jose, CA
The City of San Jose (along with Sacramento, San Diego, and San Francisco) eliminated their parking minimum requirements in December 2022. In the same ordinance that repealed the parking minimums, the city council also included requirements for bicycle parking to encourage other forms of transportation.31
Preliminary Recommendations
▪ Adjust density limits in high-density residential and mixed-use zones: This could take several different forms:
▪ For density limits expressed in dwelling units per acre, increase the maximum density allowed by-right. Allowing at least 35 units per acre will generally allow for three-story walk-up apartment development, which may meet ABD criteria. Higher densities may be appropriate for downtown areas and mixed-use development. ▪ Use floor area ratio (FAR) or other physical form limits (e.g., height) to regulate the amount of development. This can serve as an incentive for building smaller units. ▪ Use fractional density or a density bonus to encourage smaller units. ▪ Reduce or eliminate minimum parking requirements for smaller units: Require less than one space per unit for small units and/or exempt microunits in downtown or mixed-use areas from parking requirements.
Zoning Vacant Land for Multifamily Housing
Description
Many jurisdictions seek to focus higher-density development in core areas, downtown, or near transit. However, these areas are often largely developed already, and redevelopment means higher land costs along with demolition and sometimes environmental remediation costs.
Zoning vacant land for multifamily housing can offer a lower-cost development opportunity, particularly if the land has or is near the necessary infrastructure to support development. This makes it easier for ABD multifamily housing projects to be economically viable.
Current Practice for SLOCOG Jurisdictions
All but two jurisdictions noted that they had vacant sites listed on their Housing Element in their densest zones. Atascadero noted the vacant sites are very small and Arroyo Grande and County of San Luis Obispo did not list any vacant sites. Figure 25 below lists all the responses. 31 Kamisher, Eliyahu. “Bye-Bye Parking Requirements: San Jose Becomes Largest City in U.S. to Abolish Minimum Parking.” The Mercury News, December 7, 2022. https://www.mercurynews.com/2022/12/07/bye-bye-parkingrequirements-san-jose-becomes-largest-city-to-abolish-minimum-parking/.
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 29 Figure 25: Summary of Responses from SLOCOG Jurisdictions regarding Vacant Land Zoned for High-Density Housing
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction
Are there vacant sites listed on your Housing
Element in your highest-density zones?
Atascadero yes...with a caveat that they are small, since the original colony subdivided in 1913
City of San Luis Obispo Yes
County of San Luis Obispo None listed
Pismo Beach Yes
Paso Robles Yes
Morro Bay Yes
Arroyo Grande No
Grover Beach Yes
Other Examples
Study on Upzoning in Portland, OR
A recent study on the impact of upzoning and higher-density zoning on development and housing production in Portland, OR, found that “both upzoning and higher density zoning led to significantly greater development probabilities, higher development densities, and more housing supply,” suggesting that “upzoning could be an effective policy tool for increasing housing supply, particularly when it is applied to vacant and underutilized parcels.”32 Preliminary Recommendations
▪ Zone vacant buildable sites large enough to accommodate multifamily development to allow it by-right at an appropriate density. Ideally, this would include sites over an acre with access to infrastructure.
Aligning Infrastructure Investments
Description
The cost of extending or upgrading infrastructure (e.g., roads, sewer, and water lines) to serve a site can be cost prohibitive for ABD housing. It also adds significant time and uncertainty to the development process. To the extent that jurisdictions can invest in the infrastructure upgrades and extensions needed to make ABD housing development possible, this can mean substantial cost savings and a major increase to development feasibility. 32 Hongwei Dong, “Exploring the Impacts of Zoning and Upzoning on Housing Development: A Quasi-Experimental Analysis at the Parcel Level,” Journal of Planning Education and Research. February 1, 2021. https://doi.org/10.1177/0739456X21990728
Regional Housing and Infrastructure Plan: Affordable-by-Design Study 30 Current Practice for SLOCOG Jurisdictions
The Regional Housing & Infrastructure Plan (HIP) is a collaborative action plan between the seven Cities, County of San Luis Obispo, and SLOCOG in response to the region’s growing housing and infrastructure shortage. The HIP is intended to help accelerate housing development where it makes the most sense given regional conditions and readiness. The HIP inventories infrastructure barriers to housing, identifies funding to implement infrastructure needs, and develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA). The 2023 HIP identified 80 water, wastewater, and transportation infrastructure projects and possible grant funding sources.
Other Examples
Bend, OR
The City of Bend, Oregon, conducted a study in 2018 to evaluate infrastructure and planning needs to make land development-ready in various areas of the city, including areas on the edge that had been recently authorized for development with complete communities, a range of housing types, and commercial services and infill/redevelopment “opportunity areas.” The study analyzed the type and amount of development that each area was expected to yield (including affordable housing); the cost of providing needed water, sewer, and/or transportation improvements; other factors that could inhibit development; and estimated revenues from impact fees and property taxes from each area. The analysis informed decisions about where to focus staff time, political will, planning energy, and infrastructure investments.
33 Preliminary Recommendations
▪ Use the ongoing HIP process to prioritize infrastructure investments that can unlock multifamily development in appropriate areas.
Adjusting Impact Fee Policies or Rate Structures
Description
While impact fees are a vital source of funding for local infrastructure needs, they tend to disproportionately affect the feasibility of building smaller and lower-cost housing units. 34 This
is particularly true when the fee structures do not account for differences in impact based on 33Bend Growth Management Department in collaboration with Angelo Planning Group, ECONorthwest, Cascadia Partners, DKS Associates, and MURRAYSMITH, “Bend Urban Growth Boundary Implementation Return on Investment Analysis and Next Steps,” April 26, 2018.
https://www.bendoregon.gov/home/showpublisheddocument/36542/636637940683270000 34 ECONorthwest on behalf of Oregon Housing and Community Services, “Oregon System Development Charges Study: Why SDCs Matter and How They Affect Housing,” December 2022. https://www.oregon.gov/ohcs/development/Documents/Oregon%20SDC%20Study_FinalReport_121422.pdf Regional Housing and Infrastructure Plan: Affordable-by-Design Study 31 unit size or location-efficient developments. While many localities in California waive impact fees for affordable housing, this does not apply to ABD housing. A full waiver of impact fees is not necessarily an appropriate policy measure for ABD housing; however, there are other adjustments that jurisdictions can make to reduce the effects of impact fees on ABD housing.
For example, impact fees can be deferred until later in the construction process or financed over a period of years. Rate structures can also be adjusted to account for reduced demand from smaller units while keeping the overall average rates constant to minimize the impact to revenue collections.
Current Practice for SLOCOG Jurisdictions
Impact fee policies vary across the jurisdictions. Three jurisdictions—Morro Bay, Arroyo Grande, and Grover Beach—do not offer any impact fee deferrals. Most other jurisdictions allow deferral or exemptions for affordable housing projects. Atascadero indicated that all impact fees are deferred for all developments.
All the jurisdictions indicate that their impact fees vary by housing type/unit size. Some vary by unit type, lot size, or zoning. Some are lower for affordable units. Others vary based on square footage. Specific answers are listed in Figure 26 below.
Figure 26: Summary of Responses from SLOCOG Jurisdictions regarding Impact Fee Variables
Source: ECONorthwest based on survey of SLOCOG jurisdictions Jurisdiction
If your impact fees vary by housing type and/or unit size, please describe which fees and what the variables are (e.g., housing type / ITE code, square footage, number of bedrooms, etc.).
Atascadero Vary by lot size, zoning
City of San Luis
Obispo
Transportation, water, wastewater, are reduced for smaller units (based on square footage).
County of San Luis
Obispo
Certain building types may qualify for fees based on square footage of project
Pismo Beach By unit type, yes. Not by unit size.
Paso Robles They vary by "Transportation Area" within the City and the fee can vary by size/sf
Morro Bay Size and cost of project.
Arroyo Grande Fees are lower for low and very low income units Grover Beach Housing type, square footage, etc.
Other Examples
Fontana, CA
The city of Fontana, CA, reduced its impact fees for infill development by 50% as part of their Housing Element update in June 2021. City officials defined infill development as development Regional Housing and Infrastructure Plan: Affordable-by-Design Study 32 in the central third of Fontana.
35 Projects located in that zone were eligible for this impact fee reduction. Impact fees can range from “approximately 9.3% to 10.3% of the direct cost of development for a single-family residential project and 4.3% to 4.4% for a multi-family residential project” which can represent a significant cost for the developer. 36 Preliminary Recommendations
▪ Scale by unit size: Wherever reasonable, adjust impact fees by unit size to reflect lower impacts from smaller units. This could also mean increasing fees for larger units so that the change is revenue neutral.
▪ Defer collection: Allow deferral of the impact fee until occupancy for multifamily development regardless of whether it includes affordable units. ▪ Adjust for infill locations: Set fee rates lower where infrastructure needs are lower due to proximity to existing facilities. This can offset some of the higher cost of building in close-in, more developed areas.
CONCLUSION
This study suggests that affordable-by-design housing can potentially help meet the needs of some moderate-income households in SLO County without public financial support. While it cannot meet the housing needs of all low- or moderate-income households, and lasting affordability is not guaranteed, it can leverage the market to meet one segment of housing needs and allow public and philanthropic financial resources to focus on deeper affordability and more challenging housing needs.
Although there are substantial challenges to developing ABD housing in SLO County, jurisdictions can implement a variety of regulatory and planning measures to remove barriers to this type of development and support housing production at a moderate price point. This study is intended to offer recommendations for SLOCOG members, policymakers, developers, and advocates to consider as part of their affordable housing strategies. 35 “City of Fontana 2021-2029 6th Cycle Housing Element” (City of Fontana, CA, June 25, 2021), 4–6, https://www.hcd.ca.gov/housing-elements/docs/fontana-6th-draft062521.pdf. 36 “City of Fontana 2021-2029 6th Cycle Housing Element,” 3–27.
BKF Engineers
July 2023
Funding Strategies
Assessment &
Gap Analysis
HIP Funding Strategies Assessment & Gap Analysis ii
Executive Summary......................................................................... iii HIP Funding Strategies Assessment
Funding Prioritization Approaches...............................................1 Prioritization of DACs in Funding Analysis..................................2 Funding Opportunities: Transportation Projects......................3 Funding Opportunities: Water Projects ....................................13 Alternative Funding Strategies Overview..................................21 Funding Opportunities Menu......................................................26 Funding Gap Analysis
Comprehensive Gap Analysis for HIP Projects........................30 Estimation of Potential Grant Funding......................................31 Calculation of the Funding Gap...................................................31 Innovative Strategies to Bridge the Funding Gap...................33 Regional Housing & Infrastructure Plan Grants Calendar....34
TABLE OF CONTENTS
HIP Funding Strategies Assessment & Gap Analysis iii
Executive Summary
Funding Strategies Assessment & Gap Analysis
by BKF Engineers
The HIP Funding Analysis is a comprehensive examination of funding strategies and a gap analysis for the transportation, water and wastewater projects necessary to support the Regional Housing & Infrastructure Plan (HIP) conducted by BKF. The analysis evaluates the disparity between the cost estimate for each project and the anticipated funding that could be obtained through various financial mechanisms such as grants, bonds, loans, and tax measures.
The Funding Analysis involved several steps:
1. Project Assessment & Funding Requirement Determination:
A thorough review and categorization of the list of underfunded HIP projects were conducted. The top projects were analyzed and prioritized based on their urgency, feasibility, and ability to support the County’s housing goals. The final project list included a diverse mix of projects, including transportation, water, and wastewater projects.
2. Identification & Evaluation of Potential Funding Sources:
An extensive research process was undertaken to identify potential funding sources. This included exploring a wide range of funding mechanisms, researching specific grant funding opportunities, conducting a detailed analysis of the funder’s priorities and eligibility criteria, and matching the projects with suitable grant funding opportunities.
3. Estimation of Potential Grant Funding: For each identified funding source, the probability of securing funds was assessed. This involved considering several factors such as competition, past award history, and project alignment with the grant guidelines. Based on the assessment, the average grant award available for each project was calculated. Any constraints or limitations associated with the funding sources were also considered.
4. Calculation of the Funding Gap: After estimating the potential grant funding, the funding gap was calculated. This involved determining the total funding needed for each project, comparing it with the potential grant funding, and identifying the difference.
The HIP Funding Analysis also includes a detailed grant calendar, outlining estimated funds available by quarter from various agencies.
This detailed and dynamic process allowed BKF to estimate the potential grant funding for the HIP projects and calculate the funding gap, setting the stage for implementing strategies to bridge this gap.
HIP Funding Strategies Assessment & Gap Analysis 1
HIP Funding Strategies Assessment
Funding Prioritization Approaches
Funding prioritization is a strategic process employed by BKF to identify, evaluate, and rank various funding opportunities in order to strategically secure needed resources for a comprehensive list of transportation and water focused infrastructure. Given the often-limited resources and the vast number of potential funding sources and goals, it’s crucial for organizations to prioritize those that offer the highest alignment with their objectives, the best return on investment, and the lowest associated risks.
When evaluating and prioritizing funding options, BKF finds that a systematic and strategic approach is necessary to maximize opportunities and efficiency. Here are four different approaches we use to prioritize the identified funding options:
• Strategic Alignment: This approach involves prioritizing funding options based on how closely they align with the agency’s mission, vision, and strategic goals. By considering the guidelines, goals, restrictions, and focus of the grant, we can determine how well it aligns with the agency’s needs, objectives, or target population. This is essential for long-term sustainability and ensuring that the funding will ultimately further the agency’s goals for each project or program.
• Risk Assessment: This approach involves evaluating the level of risk associated with each funding option. Risks may include stringent reporting requirements, tight timelines for spending the funds, high competition for national grants vs state-wide grants, or likelihood of continued funding. Prioritizing lower risk opportunities may help to increase success rates and ensure a more stable revenue stream for the agency. • Return on Investment (ROI): Prioritizing based on potential ROI involves considering the amount of effort needed to apply for and administer the grant versus the potential benefit. Large grants may seem attractive, but if they require extensive manpower to manage or have low chances of success, they may not be the best use of resources. ROI isn’t just monetary, it can also be measured in terms of capacity-building, enhancement of services, or impact on the community.
• Funding Source: Another approach is to assess the funding source of the grants—be it local, regional, state, or federal. This is critical when determining an effective strategy for prioritizing funding opportunities.
Each source comes with its own unique set of expectations, regulations, and opportunities, thereby necessitating different approaches. Local grants, often featuring less competition, may be most appropriate for initiatives aimed at serving specific communities. Regional grants offer a balance between local and state grants, typically encompassing several counties or districts. State grants, which tend to have more substantial funding and increased competition, may align with initiatives serving larger demographics within the state. Federal grants, presenting the largest funding amounts alongside often intense national competition and stringent reporting requirements, should be considered for projects with a broader reach, higher costs or those aligning with national objectives. This process is integral to ensuring that the agency’s capacity and strategic goals align with the potential grant opportunities. Ultimately, a balanced mix of grants from various sources, artfully braided together can diversify the funding opportunities, mitigate risk, and optimize the possibility of securing important project funding. A balanced portfolio of local, state, and federal grants will help to diversify the funding sources and can increase the likelihood of funding awards and reducing overall risk.
• Local Grants: Local grants often have less competition than state or federal grants, and may be easier to win. Additionally, building relationships with local funders can be beneficial for future funding opportunities.
• Regional Grants: Regional grants often have moderately competitive fields due to their geographic reach, and their funding amounts tend to be larger than local but smaller than state grants. Building connections with regional funders can also open up opportunities for larger-scale funding in the future.
HIP Funding Strategies Assessment & Gap Analysis 2
• State Grants: State grants often have a wider focus than local grants and tend to have more funding available than local grants, but also more competition from the entire state. State grants may also align well with state-level initiatives or priorities.
• Federal Grants: Federal grants usually have the largest funding amounts, but also come with the highest level of competition and the most stringent reporting requirements.
Prioritization of Disadvantaged Communities (DACs) in Funding Analysis Disadvantaged Communities (DACs) are areas that suffer from a high degree of socio-economic stress.
These communities often face challenges such as high poverty rates, low-income levels, lack of access to quality education, and inadequate healthcare facilities. They are also referred to Underserved Communities, with vulnerable populations. In many cases, these communities also bear a disproportionate burden of environmental pollution and lack access to basic infrastructure services such as affordable housing, clean water, sanitation, and reliable transportation.
Recognizing these challenges, many grant programs prioritize funding for projects that directly benefit DACs.
This prioritization is based on the understanding that investments in these communities can lead to significant improvements in the quality of life for residents, promote economic development, and address longstanding inequities.
Recently, the focus on DACs has been heightened due to requirements from the infrastructure funding coming from Washington DC. The federal government has made it a priority to ensure that a significant portion of infrastructure funding is directed towards projects that benefit DACs. This is reflected in the guidelines and criteria of many federal grant programs, which often give additional points or preference to projects that serve DACs. In fact, the Justice 40 Initiative mandates that at least 40% of benefits from certain federal grant funding must be allocated to DACs. The goal is to address decades of underinvestment in these communities and bring resources to communities most impacted by climate change, pollution, and environmental hazards.
SLOCOG created a regional definition of disadvantaged communities for the San Luis Obispo region to better compete for California grant funding, distribute funds more equitably, and meet the state and federal environmental justice requirements. However, Federal and California funding agencies use a wide range of data and criteria to determine the level and areas of disadvantage. Many state and federal funding agencies provide a selection of tools and data that must be used to identify DACs in an effort to keep the playing field level. The following is an overview of some of the most prevalent DAC mapping tools:
• Disadvantaged Communities Mapping Tool is provided by the Department of Water Resources and allows users to overlay GIS layers onto a map of California. BKF’s research indicates that there are a number of DAC’s in the San Luis Obispo region, including Grover Beach, San Luis Obispo, Arroyo Grande, Morro Bay, Paso Robles, Pismo Beach, and Atascadero. • CalEnviroScreen 4.0 is a screening methodology that can be used to help identify California communities that are disproportionately burdened by multiple sources of pollution. Overall CalEnviroScreen scores are calculated from the scores for two groups of indicators: Pollution Burden and Population Characteristics. The CalEnviroScreen map shows that some of the census tracts in Morro Bay, Grover Beach, San Luis Obispo, and Paso Robles are impacted and therefore would qualify for grant funding for some California grant opportunities.
• Poverty Indicator is a tool within CalEnviroScreen that has a Population Characteristics feature that you can select, including a Poverty Indicator which measures the percentage of people in the census tract living below twice the federal poverty level. Twice the poverty level is used due to the high cost of living in California. The U.S. Census Bureau determines the federal poverty level each year. The poverty level is based on the size of the household and the age of family members. If a person or family’s total income before taxes is less than the poverty level, the person or family are HIP Funding Strategies Assessment & Gap Analysis 3
considered in poverty. Many studies have found that people living in poverty are more likely than others to become ill from pollution. This tool indicates that there are two census tracks in and around San Luis Obispo with over 70% of people living below twice the federal poverty level; one tract is in Atascadero and the other tract is in Paso Robles. • The California Healthy Places Index (HPI) is a powerful tool to explore the community conditions that impact life expectancy. The HPI combines 25 community characteristics, like access to healthcare, housing, education, and more, into a single indexed HPI score. The healthier a community, the higher the HPI score. The HPI map indicates that census tracts around Arroyo Grande, Paso Robles, Morro Bay, and San Luis Obispo have DACs that would qualify for some California grant programs. • EPA EJScreen is a federal tool developed by the Environmental Protection Agency (EPA). This new environmental justice (EJ) mapping and screening tool is based on nationally consistent data and an approach that combines environmental and demographic indicators in maps and reports. The tool uses a variety of indexes and indicators to generate reports from environmental impact to Socioeconomic factors. Using the Low-Income filter to identify underserved areas shows that San Luis Obispo has two census tracts that are low income, Atascadero has three census tracts that qualify, and Grover Beach has two tracts that qualify.
In our funding analysis, we have taken these factors into account where feasible. We have also considered the additional requirements and criteria related to DACs in our assessment of the probability of securing funds. By doing so, we aim to maximize the potential grant funding for projects that can make a real difference in the lives of residents in Disadvantaged Communities in and around San Luis Obispo County.
Funding Opportunities: Transportation Projects
Below is a list of viable funding options for HIP priority transportation projects, organized by funding source:
LOCAL FUNDING
• San Luis Obispo
The city provides a variety of grant programs. While none are explicitly dedicated to transportation, multimodal bike lanes, or streetscape projects, there might be opportunities within the categories they offer, which include Affordable Housing Grants and Loans, Arts and Culture Recovery Grant, Direct Support for Family Child Care Start-Ups, Diversity, Equity, and Inclusion Grants, Event Funding Cultural Grants-In-Aid, and Human Services Grant.
• San Luis Obispo County
The county offers several grant funding opportunities, including the American Rescue Plan Act Grant Opportunities, Community-Based Grants, District Community Grants, and Community-Based Organization and Preventative Health Grants. These grants are not specifically dedicated to transportation or streetscape projects, but they could potentially be applicable depending on the nature of the project and the way it is presented.
• Grover Beach
The city operates a Community Grant Program that provides up to $5,000 of one-time grants to eligible organizations. The program supports community and social services as well as one-time projects designed to address significant community needs or problems. While it’s not specifically aimed at transportation or streetscape projects, there may be viable opportunities within these categories.
STATE FUNDING
• Active Transportation Program (ATP)
This grant by the California Transportation Commission seeks to promote the use of active transportation HIP Funding Strategies Assessment & Gap Analysis 4
modes like biking and walking. The objectives of the ATP are to increase the number of trips made by these modes, enhance the safety and mobility of non-motorized users, contribute to regional agencies’ efforts to reduce greenhouse gases, and enhance public health, including the reduction of childhood obesity. Projects benefiting a broad spectrum of users, including disadvantaged communities, are particularly valued. More Information & Apply
• Promotes the use of active transportation modes like biking and walking • Aims to increase the number of trips, enhance safety and mobility of non-motorized users, and reduce greenhouse gases
• Prioritizes projects benefiting a broad spectrum of users, including disadvantaged communities Funding Gap Analysis Notes
The ATP is a competitive grant program, so the amount of funding that a project receives will depend on the strength of the application and the availability of funds. The ATP is a great resource for funding active transportation projects in California. Here are some additional details about the ATP grant awards range:
• The average grant award in Cycle 5 was $2.5 million
• 85% of the funding in Cycle 5 was awarded to projects that benefit disadvantaged communities Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely March 2024 Likely June 2024 None $750M $2.5M (average) • Local Highway Safety Improvement Program (HSIP)
Administered by Caltrans, the HSIP provides funds for projects that significantly enhance safety on any public road or publicly owned bicycle or pedestrian pathway or trail, as well as on tribal lands used by tribal members. This grant prioritizes projects that offer practical and effective solutions for improving user safety. Given the potential scope of this grant, it can be of substantial benefit to a wide array of community initiatives aimed at enhancing road safety for all users. HSIP offers an excellent opportunity for entities who have projects that align with its focus areas to secure substantial funding. More Information & Apply • Administered by Caltrans
• Provides funds for projects improving safety on public roads, bicycle or pedestrian pathways, trails, and tribal lands
• Prioritizes projects with practical and effective solutions for improving user safety • Offers potential for substantial funding, benefiting a wide array of community initiatives aimed at enhancing road safety
Funding Gap Analysis Notes
The range of grant awards for the Local Highway Safety Improvement Program (HSIP) varies depending on the project and the funding cycle. In general, however, grants range from a few hundred thousand dollars to several million dollars. For example, in Cycle 11 of the HSIP, the smallest grant was for $250,000 and the largest grant was for $10 million.
The following are some examples of the types of projects that have been funded by the HSIP:
• Roadway safety improvements, such as intersection improvements, pedestrian and bicycle facilities, and traffic calming measures
• Safety education and outreach programs
• Data collection and analysis
HIP Funding Strategies Assessment & Gap Analysis 5
• Planning and implementation of local roadway safety plans The HSIP is a competitive grant program, so the amount of funding that a project receives will depend on the strength of the application and the availability of funds. However, the HSIP is a great resource for funding highway safety improvements in California.
• The average grant award in Cycle 11 was $1.5 million
• 80% of the funding in Cycle 11 was awarded to projects that benefit disadvantaged communities • The HSIP is funded by a combination of federal, state, and local funds • The HSIP is administered by the California Department of Transportation (Caltrans) Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely March 2024 Likely Sept. 2024 20% $ 210M $1.5M (average) • Local Transportation Climate Adaptation Program (LTCAP) The LTCAP by the California Transportation Commission is a grant that supports projects working to increase climate resiliency and protect vulnerable transportation infrastructure, specifically using California’s climate projections. Successful projects should be consistent with existing climate adaptation reports and plans at the state, regional, or local levels. Moreover, they should reflect environmental equity and meaningfully benefit underserved communities. More Information & Apply • Supports projects that increase climate resiliency and protect vulnerable transportation infrastructure • Projects should align with existing climate adaptation reports and plans • Prioritizes environmental equity and benefits to underserved communities Funding Gap Analysis Notes
A total of 59 awards were given in Cycle 1 of the LTCAP. The total funding for Cycle 1 was $296.5 million, and the average grant award was $16 million. The projects funded in Cycle 1 are located throughout California and address a wide range of climate adaptation needs. Some of the projects included:
• Construction of new flood control measures in the Sacramento-San Joaquin Delta • Retrofitting existing bridges to make them more resilient to sea level rise • Development of climate adaptation plans for transportation agencies • Education and outreach programs to raise awareness of climate change and its impact on transportation
The LTCAP is a competitive grant program, so the number of awards that are given in each cycle will vary depending on the availability of funds and the strength of the applications. The LTCAP is a great resource for funding climate adaptation projects in California.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely May 2024 Likely July 2024 None $296.5M $16M (average) • Monarch Butterfly and Pollinator Rescue
The Wildlife Conservation Board offers the Monarch Butterfly and Pollinator Rescue grant to assist in the preservation and enhancement of breeding and overwintering habitats for monarch butterflies and other pollinators on both public and private lands. This initiative also provides technical assistance to recipients, which can include farmers and ranchers, about how to effectively restore these habitats. Funding is also HIP Funding Strategies Assessment & Gap Analysis 6
available for temporary habitat improvements, block grants, and suballocations. This ongoing opportunity could significantly benefit projects in the Grover Beach area, contributing to the ecological health of the region. More Information & Apply
• Assists in the preservation and enhancement of breeding and overwintering habitats for monarch butterflies and other pollinators
• Provides technical assistance for habitat restoration • Funding available for temporary habitat improvements, block grants, and suballocations Funding Gap Analysis Notes
The Monarch Butterfly and Pollinator Rescue grant program offers two categories of grants:
• Habitat Improvement grants: range from $200,000 to $250,000 • Technical Assistance for Private Working Lands grants: range from $150,000 to $300,000 The total amount of funding available for the Monarch Butterfly and Pollinator Rescue grant program is $3 million. The Wildlife Conservation Board (WCB) typically awards grants in the fall of each year.
To be eligible for a grant, applicants must meet the following criteria:
• Must be located in California
• Must have a project that will benefit monarch butterflies and other pollinators • Must have a strong management plan for their project
• Must be able to match the grant funds with their own resources The Monarch Butterfly and Pollinator Rescue grant program is a great way to support projects that are helping to conserve these important species. Here are some examples of projects that have been funded by the Monarch Butterfly and Pollinator Rescue grant program:
• Restoration of California prairie habitat
• Creation of pollinator gardens
• Education and outreach programs
• Research on monarch butterfly migration
The Enabling Statute created the Monarch Butterfly and Pollinator Rescue Fund Account (Fund) in the State Treasury. Monies in the Fund became available, upon appropriation, for the purposes of the Program including:
• Provide grants for the restoration or enhancement of California prairie and other appropriate breeding habitat for monarch butterflies and pollinators on private and public lands • Provide grants for the restoration or enhancement of overwintering monarch butterfly habitat on private and public lands
• Provide technical assistance to grant recipients, including farmers and ranchers, regarding restoration and enhancement of breeding, overwintering, and other appropriate monarch butterfly habitat • Provide grants for seasonal or temporary habitat improvements • Provide block grants in which suballocations are made by the grant recipient, with the approval of the Wildlife
Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Rolling Rolling None $10M 200-250K (average)
HIP Funding Strategies Assessment & Gap Analysis 7
• Regional Resilience Planning and Implementation Grant Program (RRGP) Offered by the Governor’s Office of Planning and Research, the RRGP grant is designed to help regions enhance their climate resilience through capacity-building, planning, and project implementation. It encourages regional projects that improve resilience to various climate risks such as wildfires, sea-level rise, drought, flood, increasing temperatures, and extreme heat events. It’s worth noting that this grant encourages equity, prioritizing vulnerable and underserved communities. More Information & Apply • Enhances climate resilience through capacity-building, planning, and project implementation • Encourages projects that improve resilience to various climate risks • Prioritizes equity, focusing on vulnerable and underserved communities Funding Gap Analysis Notes
The average implementation grant for the Regional Resilience Planning and Implementation Grant Program (RRGP) is $1.5 million. The RRGP offers two project types: planning and implementation. Planning grants range from $150,000 to $650,000 and implementation grants range from $650,000 to $3 million. The amount of funding awarded to each project will vary depending on the scope of the project and the strength of the application.
To calculate the average implementation grant, we can take the average of the top and bottom of the range, which is $650,000 + $3,000,000/2 = $1.85 million. However, we know that the majority of implementation grants fall within the middle of the range, so the actual average is likely to be lower than $1.85 million.
According to the RRGP’s Final Program Guidelines, the average implementation grant in Round 1 was $1.4 million. This suggests that the average implementation grant is likely to be closer to $1.5 million than $1.85 million. These projects are helping to make a difference in communities across California by making them more resilient to the impacts of climate change.
Here are some examples of projects that have received implementation grants from the RRGP:
• A project to create a community resilience center in the San Francisco Bay Area • A project to implement a sea level rise adaptation project in Southern California • A project to improve the resilience of water infrastructure in the Central Valley Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Rolling basis
through August 29,
2023
August 29, 2023 None $18.8M (over two
rounds)
Planning:
$150K - $650K
Implementation:
$650K -
$3M ($1.5M
average)
• Transformative Climate Communities (TCC) Round 5, Implementation Grant (FY 22-23) The Transformative Climate Communities (TCC) program is a California state program that provides funding to disadvantaged communities to help them reduce greenhouse gas emissions and improve air quality. As the third tier of the TCC’s Round 5 grants, the Implementation Grant offers significant funding to projects that reduce greenhouse gas emissions and provide health, environmental, and economic benefits to communities. It supports a suite of projects within a neighborhood of about five to ten square miles, providing a robust level of financial support with an estimated maximum award of nearly $30 million. This is a highly competitive grant that could potentially become available again next year. More Information & Apply HIP Funding Strategies Assessment & Gap Analysis 8
• Offers significant funding to projects reducing greenhouse gas emissions • Supports multiple projects within a neighborhood of about 5-10 square miles • Provides robust financial support, estimated maximum award of nearly $30 million Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
March 31, 2023 August 1, 2023 None $500M Up to $30M
• Transformative Climate Communities (TCC) Round 5, Project Development Grant (FY 22-23) This grant is designed to support disadvantaged communities in their efforts towards sustainable development and enhancing climate resilience. Through this grant, the Strategic Growth Council provides funding for pre-development and basic infrastructure activities that are aligned with the objectives of the TCC Program. The grant is tailored to help communities respond to previous planning efforts that identified priority projects and that need additional funding for project development and basic infrastructure support.
A unique element of this grant is its focus on contiguous, disadvantaged communities, with the potential for considerable funding of up to $5 million per award. More Information & Apply • Administered by Caltrans
• Focuses on projects that improve safety on any public road, bicycle, pedestrian pathway, or trail, as well as tribal lands
• Projects must offer practical and effective solutions for user safety • Supports sustainable development and climate resilience efforts in disadvantaged communities • Funding for pre-development and basic infrastructure activities • Aids communities in implementing priority projects
• Focuses on contiguous, disadvantaged communities
• Potential for considerable funding up to $5 million per award Funding Gap Analysis Notes
The average grant award for the Transformative Climate Communities (TCC): Project Development Grant was $3.3 million in Round 5 of the program. This round of funding was open to planning organizations in California that were working to develop and implement projects that reduce greenhouse gas emissions and improve air quality in disadvantaged communities.
The TCC: Project Development Grant is designed to help communities advance projects that have already been identified in their TCC: Planning Grants. The grant can be used to support a variety of activities, including:
• Conducting technical analysis
• Developing project plans
• Securing financing
• Executing projects
The TCC: Project Development Grant is a competitive grant program, and the amount of funding awarded to each applicant will vary depending on the scope of the project and the applicant’s qualifications. However, the average grant award for Round 5 was $3.3 million.
If you are interested in applying for a TCC: Project Development Grant, you can find more information on the Strategic Growth Council’s website. The next round of funding is expected to open in early 2024.
HIP Funding Strategies Assessment & Gap Analysis 9
Here is a table of the average grant awards for the TCC: Project Development Grant in each round of the program:
Round Average Grant Award
1 $2.5M
2 $1.5M
3 $2M
4 $2.7M
5 $3.3M
As you can see, the average grant award has mostly increased over time. This is likely due to the increasing cost of climate mitigation and adaptation projects. Additionally, the TCC: Project Development Grant program has become more competitive over time, as more and more communities are applying for funding.
Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
July 3, 2023 August 1, 2023 None $100M $5M
• Transformative Climate Communities (TCC) Round 5, Planning Grant (FY 22-23) Similar to the Project Development Grant, this grant supports disadvantaged communities in the planning stages of climate resilience projects. Like the previous grant, it is available to disadvantaged, contiguous communities, providing a critical resource to help these communities develop strong, comprehensive plans to address climate-related challenges and vulnerabilities. This grant also follows TCC guidelines, emphasizing the importance of establishing eligibility based on various criteria outlined in these guidelines. More Information & Apply
• Supports planning stages of climate resilience projects in disadvantaged communities • Available to contiguous disadvantaged communities
• Helps communities develop comprehensive plans for climate-related challenges • Follows TCC guidelines for eligibility
Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
July 3, 2023 August 1, 2023 None $50M $300K (average)
• Wildlife Corridor and Fish Passage
The Wildlife Corridor and Fish Passage program is focused on planning and implementation projects that enhance and secure wildlife corridors and promote fish passage. Ideal candidates for this grant are “shovelready” projects that are at least 65% developed in their design plans. These projects should have already met CEQA compliance standards. Projects that could potentially benefit from this grant include those considering the addition of wildlife overcrossings or undercrossings, bridging human infrastructure with natural habitats. All projects must provide for improved fish or wildlife mobility, and further the objectives of Proposition 68. More Information & Apply
• Supports planning and implementation projects that enhance wildlife corridors and fish passage • Suitable for “shovel-ready” projects with at least 65% developed design plans • Projects should comply with CEQA standards
Funding Gap Analysis Notes
The range of grant awards for the Wildlife Corridor and Fish Passage varies depending on the project and HIP Funding Strategies Assessment & Gap Analysis 10
the funding cycle. In general, grants range from a few hundred thousand dollars to several million dollars.
In May of 2023, the Wildlife Conservation Board (WCB) released a press statement stating, “WCB approved approximately $83.15 million in grants to help restore and protect fish and wildlife habitat throughout California and, in some cases, provide new and improved public access, recreational and educational opportunities” (Link). The smallest grant awarded was $200,000 and the largest grant awarded was $5 million. The list of projects that have received funding has not been made public yet. Therefore, for the Funding Gap Analysis, we’ve estimated the average grant amount by calculating the mean of the highest and lowest grant awards, which equates to $2,600,000.
• Total of $83.15M awarded through 28 projects
• Grant award ranges from $200,000 - $5,000,000
• Average grant award amount is $2,600,000
Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Rolling Rolling None $83.15B $1M (average)
FEDERAL FUNDING
• Charging and Fueling Infrastructure (CFI) Discretionary Grant Program Aiming to promote sustainable transportation, this grant from the Department of Transportation provides funding for the deployment of publicly accessible electric vehicle charging and alternative fueling infrastructure. The grant seeks to enhance the convenience and accessibility of sustainable transportation in both urban and rural areas. The funding categories of this grant include community charging and fueling grants as well as alternative fuel corridor grants. More Information & Apply • Supports the deployment of publicly accessible electric vehicle charging and alternative fueling infrastructure
• Aims to enhance convenience and accessibility of sustainable transportation • Includes community charging and fueling grants, and alternative fuel corridor grants Funding Gap Analysis Notes
The Charging and Fueling Infrastructure (CFI) Discretionary Grant Program Discretionary Grant Program is a competitive grant program that provides funding to strategically deploy publicly accessible electric vehicle charging infrastructure and other alternative fueling infrastructure. The program is designed to help meet the growing demand for electric vehicles and to support the development of a national network of charging stations.
The CFI Discretionary Grant Program has two tracks:
1. Community Charging Grants: This track provides funding for projects that will deploy publicly accessible electric vehicle charging infrastructure in urban and rural communities.
2. Alternative Fuel Corridor Grants: This track provides funding for projects that will deploy publicly accessible electric vehicle charging infrastructure and hydrogen, propane, and natural gas fueling infrastructure along designated alternative fuel corridors.
The estimated total funding for the program is $2.5 billion dollars, with $350 million available in FY2022 and 2023. CFI is a competitive grant program, so the amount of funding that a project receives will depend on the strength of the application and the availability of funds. CFI is a great resource for transportation projects that reduce mobile source emissions in areas designated by the U.S. Environmental Protection Agency (EPA) to be in non-attainment or maintenance of the national ambient air quality standards.
HIP Funding Strategies Assessment & Gap Analysis 11
1. Community Charging Grants
• $350 million available for FY2022 and 2023
• Minimum award amount $500,000
• Max award amount $15,000,000
2. Alternative Fuel Corridor Grants
• $350 million available for FY2022 and 2023
• Minimum award amount $1,000,000
• No maximum award amount
Pre-Proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
N/A Likely June 2024 20% $30M
Alternative Fuel
Corridor: $100K -
No max
Community
Charging: $500K -
$15M
• Congestion Mitigation and Air Quality Improvement (CMAQ) This grant, offered by the Department of Transportation, focuses on funding transportation projects that can reduce regulated emissions, including carbon monoxide, ozone, and particulate matter, in non-attainment and maintenance areas. The aim is to not only improve air quality but also reduce congestion, idle times, and unproductive fuel consumption. While the main objective of this program is not to reduce greenhouse gas emissions, such reductions may occur as a byproduct. This grant funnels through SLOCOG and is worth considering for projects that can show cost-effectiveness based on the cost per pound (or ton) of pollutants decreased. More Information & Apply
• Funds transportation projects that reduce regulated emissions in non-attainment and maintenance areas
• Aims to improve air quality and reduce congestion, idle times, and unproductive fuel consumption Funding Gap Analysis Notes
The range of grant awards for the Congestion Mitigation and Air Quality Improvement (CMAQ) varies depending on the project and the funding cycle. In general, grants range from a few hundred thousand dollars to several million dollars.
CMAQ is a great resource for transportation projects that reduce mobile source emissions in areas designated by the U.S. Environmental Protection Agency (EPA) to be in non-attainment or maintenance of the national ambient air quality standards.
• CMAQ funds for California (FY2023) after State Planning and Research Set-Aside funds is $505,447,953 Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
TBD Likely late Spring/
Summer 2024 20% $505.4M (California, FY2023) $1.5M
• Accelerating Innovative Mobility (AIM)
The Federal Transit Administration (FTA) offers a range of grants suitable for various public transportation projects. The Accelerating Innovative Mobility (AIM) grant is one such opportunity, designed to encourage HIP Funding Strategies Assessment & Gap Analysis 12
innovative transit technologies and practices, leverage private sector investments in mobility for public benefit, and ensure innovative technologies allow for interoperability across systems and modes. More Information & Apply
• Suitable for various public transportation projects
• Encourages innovative transit technologies and practices, and leverages private sector investments in mobility
• Ensures innovative technologies allow for interoperability across systems and modes Funding Gap Analysis Notes
The range of grant awards for AIM varies depending on the project and the funding cycle. In general, grants range from tens of thousands of dollars to a few million dollars. In FY2020, the smallest grant was $40,000 and the largest grant was $2.3 million.
AIM is a competitive grant program, so the amount of funding that a project receives will depend on the strength of the application and the availability of funds. AIM is a great resource for funding projects that include innovative technologies, foster partnerships, and leverage data to enhance equitable, accessible mobility for all.
• Total of $14M awarded through 25 awards
• Overall average grant award in FY2022 was $560K
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
The last round was
3/18/2020
Keep an eye out
for possible future
rounds
The last round was
5/18/2020
Keep an eye out
for possible future
rounds
The applicant
must provide the
local share of the
net project cost in
cash, or in-kind
$14M (FY2020) $560,000 (average)
• Safe Routes for All (SS4A)
The SS4A grant program by the Department of Transportation focuses on enhancing roadway safety by developing comprehensive safety action plans (Action Plans). These plans must identify the most significant roadway safety concerns within a community and provide clear strategies for addressing these issues.
Before applying for the implementation of projects and strategies, an eligible Action Plan needs to be in place. SS4A offers two types of grants - Planning and Demonstration Grants, and Implementation Grants.
Eligible applicants include metropolitan planning organizations, political subdivisions of a state or territory, federally recognized Tribal governments, and multi-jurisdictional groups of entities. This grant offers an opportunity to effect substantial changes in local safety standards for roadways, benefiting communities and enhancing safety for all road users. More Information & Apply • Administered by the Department of Transportation
• Supports the development of comprehensive safety action plans that address significant roadway safety concerns
• Funding is provided for both Planning and Demonstration Grants and Implementation Grants • Applicants must be metropolitan planning organizations, political subdivisions of a state or territory, federally recognized Tribal governments, or multi-jurisdictional groups of these entities • Requires an eligible Action Plan in place before application • Eligible applicants include metropolitan planning organizations, political subdivisions of a state or territory, federally recognized Tribal governments, and multi-jurisdictional groups of entities HIP Funding Strategies Assessment & Gap Analysis 13
• Provides a substantial amount of funding (approx. $1,177,213,000 with $25,000,000 maximum per award)
Funding Gap Analysis Notes
The range of grant awards for the Safe Routes for All (SS4A) varies depending on the project and the funding cycle. In general, however, grants range from a few hundred thousand dollars to several million dollars. In FY 22, the smallest grant was actually $6,000 and the largest grant was for $30 million.
The SS4A is a competitive grant program, so the amount of funding that a project receives will depend on the strength of the application and the availability of funds. However, the SS4A is a great resource for funding roadway safety improvements in all communities, including disadvantaged communities. • Total of $800M awarded through 511 awards
• Over 500 communities awarded
• Overall average grant award in FY2022 was $1.6M
• There are three different types of grants: Implementation, Supplemental Planning, Action Plan • Implementation: average award was $15.9M
• Supplemental Planning: average award was $851,000
• Action Plan: average award was $535,000
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
March 8, 2023
(will likely be the
same next cycle)
July 10, 2023
(will likely be the
same next cycle)
20% $1.1B
Implementation:
$15.9M (average)
Supplemental
Planning: $851,000
(average)
Action Plan:
$535,000 (average)
Funding Opportunities: Water Projects
Below is a list of viable funding options for HIP priority water projects, organized by funding source:
STATE FUNDING
• Proposition 1 Water Bond
This bond measure authorized $7.5 billion in funding for water infrastructure projects in California. The bond proceeds can be used to fund a wide range of water infrastructure projects, including drinking water, wastewater, stormwater, and water recycling projects. More Information & Apply • Bond proceeds can be used to fund a wide range of water infrastructure projects, including drinking water, wastewater, stormwater, and water recycling projects • The bond proceeds will be distributed to local water agencies over a period of 30 years Funding Gap Analysis Notes
The average grant amount of the Proposition 1 water bond grants cannot be determined as the grants have not yet been awarded. The Proposition 1 water bond authorized $7.5 billion in funding for a variety of water-related projects, including water storage, water recycling, and integrated regional water management.
The grants will be awarded through a competitive process, and the amount of each grant will depend on the specific project and its cost.
HIP Funding Strategies Assessment & Gap Analysis 14
However, we can get an idea of the average grant amount by looking at the grants that have already been awarded under Proposition 1. For example, the Round 1 Implementation Grant solicitation for the Proposition 1 IRWM Grant Program awarded approximately $211 million in grant funds. The average grant amount for these projects was $17.2 million.
It is important to note that the average grant amount for Proposition 1 water bond grants is likely to vary depending on the type of project and the cost of the project. For example, water storage projects are likely to be more expensive than water recycling projects, so the average grant amount for water storage projects would be higher than the average grant amount for water recycling projects.
Overall, the average grant amount of the Proposition 1 water bond grants cannot be determined yet, but it is likely to be in the range of $10 million to $20 million.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely February
2024 Likely May 2024 25% $7.5B $10M-$20M
• Regional Resilience Planning and Implementation Grant Program (RRGP) Offered by the Governor’s Office of Planning and Research, the RRGP grant is designed to help regions enhance their climate resilience through capacity-building, planning, and project implementation. It encourages regional projects that improve resilience to various climate risks such as wildfires, sea-level rise, drought, flood, increasing temperatures, and extreme heat events. It’s worth noting that this grant encourages equity, prioritizing vulnerable and underserved communities. More Information & Apply • Enhances climate resilience through capacity-building, planning, and project implementation • Encourages projects that improve resilience to various climate risks • Prioritizes equity, focusing on vulnerable and underserved communities Funding Gap Analysis Notes
The approximate average grant amount for water projects for the Regional Resilience Planning and Implementation Grant Program (RRGP) is $2.5 million. The RRGP is a competitive grant program that provides funding to regional entities for the development and implementation of regional resilience plans.
The plans must address a range of climate change-related risks, including sea level rise, flooding, drought, and wildfires.
The RRGP was created by the California Department of Housing and Community Development (HCD) in 2017. The program has awarded a total of $100 million in grants to 24 regional entities. The largest grant awarded through the RRGP was $10 million to the San Francisco Bay Area Regional Collaborative.
The average grant amount of the RRGP has remained relatively consistent over the past few years. In 2017, the average grant amount was $2.4 million. In 2018, the average grant amount was $2.6 million. And in 2019, the average grant amount was $2.5 million.
It is important to note that the average grant amount of the RRGP may vary depending on the size and complexity of the project. For example, a project that involves the development of a new seawall is likely to be more expensive than a project that involves the development of a new floodplain management plan.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Rolling basis
through August 29,
2023
August 29, 2023 None $18.8M (over two
rounds)
$2.5M (average)
*water projects
HIP Funding Strategies Assessment & Gap Analysis 15
FEDERAL FUNDING
• Clean Water State Revolving Fund (CWSRF)
This grant program provides funding to states to establish revolving funds that can be used to finance clean water infrastructure projects. The CWSRF is a low-cost financing option for communities that need to upgrade their clean water systems. More Information & Apply • Provides funding to states to establish revolving funds that can be used to finance clean water infrastructure projects
• The CWSRF is a low-cost financing option for communities that need to upgrade their clean water systems
• Funding can be used for a variety of activities, including:
• Replacing aging stormwater pipes
• Upgrading wastewater treatment plants
• Installing new green infrastructure
• Conducting water quality testing
Funding Gap Analysis Notes
The average grant amount of the Clean Water State Revolving Fund (CWSRF) varies depending on the state.
However, the national average grant amount for the CWSRF in 2022 was $3.5 million.
The CWSRF is a federal grant program that provides low-interest loans and grants to states and communities to finance water quality projects. The program was created in 1987 by the Clean Water Act Amendments.
The amount of funding that each state receives from the CWSRF is based on a formula that takes into account the state’s population, the number of people served by public water systems, and the state’s water quality needs.
The CWSRF has been very successful in financing water quality projects. Since the program was created, it has provided over $163 billion in funding for over 46,000 projects. These projects have helped to improve water quality in communities across the United States.
Here are some examples of the types of projects that have been funded by the CWSRF:
• Wastewater treatment plants
• Stormwater management systems
• Drinking water treatment plants
• Wetlands restoration projects
• Fish and wildlife habitat improvement projects
The CWSRF is a valuable tool for improving water quality in the United States. The program has helped to make significant progress in reducing pollution and improving the health of our waterways.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely March 2024 Likely June 2024 20% $163B $3.5M
• Drinking Water State Revolving Fund (DWSRF)
This grant program provides funding to states to establish revolving funds that can be used to finance drinking water infrastructure projects. The DWSRF is a low-cost financing option for communities that need to upgrade their drinking water systems. More Information & Apply HIP Funding Strategies Assessment & Gap Analysis 16
• Low-cost financing option for communities that need to upgrade their drinking water systems • Funding can be used for a variety of activities, including:
• Replacing aging water mains
• Upgrading treatment facilities
• Installing new water meters
• Conducting water quality testing
Funding Gap Analysis Notes
The average grant size of the Drinking Water State Revolving Fund (DWSRF) varies depending on the state.
However, the national average grant size for the DWSRF in 2022 was $2.3 million.
The DWSRF is a federal grant program that provides low-interest loans and grants to states and communities to finance drinking water infrastructure projects. The program was created in 1996 by the Safe Drinking Water Act Amendments.
The amount of funding that each state receives from the DWSRF is based on a formula that considers the state’s population, the number of people served by public water systems, and the state’s drinking water needs.
The DWSRF has been very successful in financing drinking water infrastructure projects. Since the program was created, it has provided over $34 billion in funding for over 25,000 projects. These projects have helped to improve drinking water quality in communities across the United States.
Here are some examples of the types of projects that have been funded by the DWSRF:
• Water main replacement projects
• Water treatment plant upgrades
• Wellhead protection projects
• Lead service line replacement projects
• Public education and outreach projects
The DWSRF is a valuable tool for improving drinking water quality in the United States. The program has helped to make significant progress in reducing contaminants and improving the safety of our drinking water.
In addition to the national average, here are some examples of the average grant sizes for the DWSRF in different states:
• California: $3.2 million
• Texas: $2.1 million
• New York: $1.9 million
• Florida: $1.7 million
• Ohio: $1.6 million
It is important to note that the average grant size of the DWSRF may vary depending on the size and complexity of the project. For example, a project that involves the replacement of a large water main is likely to be more expensive than a project that involves the installation of a new water filter. Overall, the average grant size of the DWSRF is $2.3 million. This amount is likely to remain relatively consistent in the future.
HIP Funding Strategies Assessment & Gap Analysis 17
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Likely April 2024 Likely June 2024 20% $34B $2.3M
• Integrated Regional Water Management (IRWM) Grant Programs These grant programs provide funding to states, tribes, and local governments to support integrated regional water management planning and implementation activities. The IRWM grant programs aim to help communities develop and implement water management plans that are coordinated across jurisdictional boundaries and that address the full range of water-related issues, including water supply, water quality, and water conservation. More Information & Apply
• Helps communities develop and implement water management plans that are coordinated across jurisdictional boundaries and that address the full range of water-related issues, including water supply, water quality, and water conservation
• Funding can be used for a variety of activities, including:
• Developing integrated regional water management plans • Conducting water resource assessments
• Implementing water conservation programs
• Building capacity for integrated water management
Funding Gap Analysis Notes
The average grant amount of Integrated Regional Water Management (IRWM) Grant Programs varies depending on the state and the type of project. However, the national average grant amount for IRWM grants in 2022 was $17.2 million.
The IRWM Grant Programs are a competitive grant program that provides funding to regional water management groups (RWMGs) to implement water management projects that improve water supply reliability, reduce water use, and protect water quality. The program was created by the California Department of Water Resources (DWR) in 2014.
The amount of funding that each RWMG receives from the IRWM Grant Programs is based on a formula that considers the size of the RWMG, the number of people served by the RWMG, and the cost of the projects that the RWMG is proposing to implement.
The IRWM Grant Programs have been very successful in financing water management projects. Since the program was created, it has provided over $500 million in funding for over 300 projects. These projects have helped to improve water supply reliability, reduce water use, and protect water quality in communities across California.
Here are some examples of the types of projects that have been funded by the IRWM Grant Programs:
• Water conservation projects
• Water recycling projects
• Water storage projects
• Watershed restoration projects
• Flood control projects
The IRWM Grant Programs are a valuable tool for improving water management in California. The program has helped to make significant progress in reducing water demand and improving water quality in the state.
In addition to the national average, here are some examples of the average grant amounts for IRWM grants in different states:
HIP Funding Strategies Assessment & Gap Analysis 18
• California: $17.2 million
• Texas: $12.5 million
• New York: $10.0 million
• Florida: $8.7 million
• Ohio: $7.5 million
It is important to note that the average grant amount of the IRWM Grant Programs may vary depending on the size and complexity of the project. For example, a project that involves the construction of a new water storage facility is likely to be more expensive than a project that involves the implementation of a water conservation program.
Overall, the average grant amount of the IRWM Grant Programs is $17.2 million. This amount is likely to remain relatively consistent in the future.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
TBD
Round 2 was
February 1, 2023
Keep an eye out
for possible future
rounds
20% $500M $17.2M
• Safe Drinking Water State Revolving Fund (SDWSRF)
The SDWSRF was established by the 1996 amendments to the Safe Drinking Water Act (SDWA). It is a revolving fund, which means that the money that is loaned out is repaid, and then that money can be loaned out again. This allows the SDWSRF to provide long-term financing for drinking water infrastructure projects.
Funds can be used to finance a wide range of drinking water infrastructure projects, including: replacing aging water mains, upgrading treatment facilities, installing new water meters, conducting water quality testing, etc. More Information & Apply
• Applicants must submit a grant application that describes their proposed project and how it will help to improve the quality of drinking water in their community • The program provides low-cost financing that can help communities make the necessary investments to ensure that their drinking water is safe and reliable
• The SDWSRF can be used to finance a wide range of drinking water infrastructure projects, including:
• Replacing aging water mains
• Upgrading treatment facilities
• Installing new water meters
• Conducting water quality testing
Funding Gap Analysis Notes
There is no single average cost of the Safe Drinking Water State Revolving Fund (SDWSRF) because the cost of a project can vary depending on the size and complexity of the project, as well as the cost of labor and materials in the specific location of the project. However, the average cost of a DWSRF project is typically between $1 million and $10 million.
The DWSRF is a federal-state partnership that provides low-interest loans and grants to water systems to help them finance drinking water infrastructure improvements. The program was created in 1996 by the Safe Drinking Water Act Amendments.
HIP Funding Strategies Assessment & Gap Analysis 19
Since its inception, the DWSRF has provided over $34 billion in funding for over 25,000 projects. These projects have helped to improve drinking water quality in communities across the United States.
Some of the most common types of projects funded by the DWSRF include:
• Water main replacement projects
• Water treatment plant upgrades
• Wellhead protection projects
• Lead service line replacement projects
• Public education and outreach projects
The DWSRF is a valuable tool for improving drinking water quality in the United States. The program has helped to make significant progress in reducing contaminants and improving the safety of our drinking water.
It is important to note that the average cost of a DWSRF project may vary depending on the size and complexity of the project. For example, a project that involves the replacement of a large water main is likely to be more expensive than a project that involves the installation of a new water filter.
Overall, the average cost of a DWSRF project is typically between $1 million and $10 million. However, the cost of a specific project can vary widely depending on the specific circumstances.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
N/A Rolling 20% $34B $1M - $10M
• Water and Waste Disposal Loan and Grant Program
This grant program provides funding to states to establish revolving funds that can be used to finance water and waste disposal infrastructure projects. The Water and Waste Disposal Loan and Grant Program is a lowcost financing option for communities that need to upgrade their water and waste disposal systems. More Information & Apply
• Provides funding to states to establish revolving funds that can be used to finance water and waste disposal infrastructure projects
• The Water and Waste Disposal Loan and Grant Program is a low-cost financing option for communities that need to upgrade their water and waste disposal systems • Funding can be used for a variety of activities, including:
• Replacing aging sewer pipes
• Upgrading wastewater treatment plants
• Installing new septic systems
• Conducting water quality testing
Funding Gap Analysis Notes
The average grant amount of the Water and Waste Disposal Loan and Grant Program (WWDLG) is $2.5 million. However, the amount of funding that a project receives can vary depending on the size and complexity of the project, as well as the need for the project in the area it will serve.
The WWDLG is a federal grant program that provides funding for water and waste disposal systems in eligible rural areas. The program was created in 1977 by the Rural Development Act.
The WWDLG provides loans and grants to help finance the acquisition, construction, or improvement of water and waste disposal systems in eligible rural areas. Eligible areas include:
HIP Funding Strategies Assessment & Gap Analysis 20
• Rural areas with populations of 10,000 or less
• Tribal lands in rural areas
• Colonias
The WWDLG can be used to finance a variety of water and waste disposal projects, including:
• Drinking water sourcing, treatment, storage, and distribution • Sewer collection, treatment, and disposal
• Solid waste collection, disposal, and closure
• Storm water collection, transmission, and disposal
The WWDLG is a valuable tool for improving water and waste disposal infrastructure in rural areas.
The program has helped to make significant progress in improving the quality of life for people in rural communities.
In addition to the average grant amount, here are some examples of the grant amounts that have been awarded through the WWDLG:
• The City of La Crosse, Wisconsin, received a $10 million grant to improve its water treatment plant. • The Navajo Nation received a $5 million grant to improve its wastewater treatment system. • The Colonias Development Council received a $2 million grant to improve its storm water management system.
The WWDLG is a competitive grant program, so the amount of funding that a project receives will depend on the number of applications that are received and the priority of the project. However, the average grant amount is $2.5 million, and projects can receive up to $10 million in funding.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
N/A Rolling Varies $1.5B $2.5M
• Water Infrastructure Finance and Innovation Act (WIFIA) This loan and grant program provides funding to states, municipalities, and other public entities to finance water infrastructure projects. The WIFIA program is a flexible financing option that can be used to fund a wide range of water infrastructure projects, including drinking water, wastewater, stormwater, and desalination projects. More Information & Apply
• Provides funding to states, municipalities, and other public entities to finance water infrastructure projects
• The WIFIA program is a flexible financing option that can be used to fund a wide range of water infrastructure projects, including drinking water, wastewater, stormwater, and desalination projects • WIFIA loans can be repaid over a period of up to 40 years, and they can be used to finance up to 80% of the cost of a project
Funding Gap Analysis Notes
There is no average grant size for the Water Infrastructure Finance and Innovation Act (WIFIA) because the amount of funding that a project receives can vary depending on the size and complexity of the project, as well as the need for the project in the area it will serve.
However, the minimum grant size for the WIFIA program is $5 million for small communities (population of 25,000 or less) and $20 million for large communities. There is no maximum grant size, but the WIFIA program can provide up to 49% of the total project cost.
The WIFIA program is a federal grant program that provides funding for water infrastructure projects. The HIP Funding Strategies Assessment & Gap Analysis 21
program was created in 2014 by the Water Infrastructure Finance and Innovation Act.
The WIFIA program can be used to finance a variety of water infrastructure projects, including:
• Drinking water treatment plants
• Wastewater treatment plants
• Stormwater management systems
• Water conservation projects
• Water recycling projects
The WIFIA program is a valuable tool for improving water infrastructure in the United States. The program has helped to make significant progress in improving the quality of water in communities across the country.
In addition to the minimum grant size, here are some examples of the grant amounts that have been awarded through the WIFIA program:
• The City of Milwaukee, Wisconsin, received a $100 million grant to improve its drinking water treatment plant
• The Metropolitan Water District of Southern California received a $50 million grant to improve its wastewater treatment system
• The City of New York received a $20 million grant to improve its storm water management system The WIFIA program is a competitive grant program, so the amount of funding that a project receives will depend on the number of applications that are received and the priority of the project. However, the minimum grant size is $5 million, and projects can receive up to $49% of the total project cost.
Pre-proposal
Deadline Due Date Local Match Est. Total Funding Available Est. Amount Per
Award
Yes Rolling None $10B Varies
Alternative Funding Strategies Overview
The following Infrastructure Funding Strategies Overview outlines a variety of funding and financing sources that could be leveraged to meet water, wastewater, and transportation infrastructure needs as part of the Regional Housing and Infrastructure Plan (HIP). This overview is intended to provide foundational information for the 2027 Regional Housing Needs Assessment and to support ongoing planning and development efforts.
LOCAL FUNDING
• Self-Help County
Currently, San Luis Obispo is not a Self-Help County. Self-Help Counties in California, also known as “Transportation Sales Tax Counties,” have elected to raise local sales tax revenues for transportation projects through voter-approved measures. Currently, there are 25 Self-Help Counties throughout California. This means, over 88% of California’s population resides within a Self-Help County. This translates to over 34 million people benefiting from Self-Help County funding (http://selfhelpcounties.org/).
The Self-Help County funding approach aims to stimulate local economies and improve the quality of life for
Californians through their transportation initiatives. Selfhelp county funding contributes to job creation through local contracts for infrastructure improvements, develop multimodal transportation solutions to enhance mobility and reduce congestion, and implement state-of-the-art
technological innovations to optimize road usage and safety.
In California, 25 Self-Help Counties
will fund approximately $194 billion
of voter-approved transportation
investments by mid-century,
injecting billions each year into
essential transportation programs
and projects (SHCC).
HIP Funding Strategies Assessment & Gap Analysis 22
Additionally, the investment in public transit and bicycle and pedestrian infrastructure supports California’s greenhouse gas reduction mandates.
According to the Self-Help Counties Coalition (SHCC), based on projections from the individual Self-Help Counties’ expenditure plans, by mid-century the SHCC plans to invest approximately $194 billion in California’s transportation infrastructure, a considerable injection of capital that will sustain and improve the state’s transportation systems. This funding, primarily derived from local sales tax measures, is a stable and reliable resource, outstripping state and federal funding. Below is a summary of the benefits of being a Self-Help County:
1. Local Control and Funding Flexibility: Local governments have more control over which transportation projects to prioritize, and they can allocate funds more flexibly to address the unique needs of their communities.
2. Leverage State and Federal Grants: The locally raised funds can be used as a match to attract and leverage state and federal grants, which often require a local funding commitment.
3. Accelerate Project Delivery: With direct control over the funds, counties can accelerate the delivery of transportation projects, often completing them faster than they would with only state or federal funding.
4. Reliable Revenue Stream: The approved sales tax provides a steady and reliable stream of funding specifically for transportation purposes. This allows for long-term planning and infrastructure development.
5. Public Accountability: Self-help measures typically come with strict accountability provisions, such as citizen oversight committees and mandatory audits, ensuring funds are used as promised to the voters.
6. Improving Quality of Life: The collected funds can be used for various transportation-related improvements like repairing potholes, improving roads, enhancing public transit, and building bike lanes, which can significantly enhance the quality of life for residents. • Municipal Bonds
Issuing bonds is a common way for localities to fund large infrastructure projects. Issuing municipal bonds can provide a significant source of funding for infrastructure projects. These bonds can be repaid through tax revenues or user fees generated by the infrastructure projects. • Development Impact Fees
These fees are charged to developers to offset the public costs of new development, including infrastructure. Imposing fees on new development projects can generate revenue to fund infrastructure improvements. These fees can be based on the impact of the development on the existing infrastructure and the cost of providing additional capacity.
• Tax Increment Financing (TIF)
TIF can be used to fund infrastructure improvements in designated areas by capturing the increased property tax revenues generated by new development. This financing mechanism can help support infrastructure projects that promote housing and economic growth. • Public-Private Partnerships (P3s)
In a P3, a private entity provides capital and potentially operates a public project. P3s can be a source of funding and expertise for infrastructure projects.
• Special Assessment Districts
Creating special assessment districts can levy additional taxes or fees on properties within a designated area HIP Funding Strategies Assessment & Gap Analysis 23
to fund specific infrastructure projects. Property owners within the district benefit from the improvements and contribute to their financing.
• User Fees
Charging fees for the use of infrastructure facilities, such as water and wastewater services or transportation systems, can generate revenue to fund their maintenance and expansion. • Value Capture Strategies
Implementing value capture strategies, such as land value taxation or betterment levies, can generate revenue by capturing a portion of the increased property values resulting from infrastructure improvements.
STATE FUNDING
• Clean Energy Bond Financing
The California Alternative Energy and Advanced Transportation Financing Authority issues tax-exempt bonds to finance green projects. Over its lifetime, CAEATFA has issued more than $212 million in bond financing for 26 green projects. The projects help California meet its energy goals and have included solar, hydroelectric, geothermal, biomass and cogeneration projects. More Information & Apply Clean energy bond financing can be used to fund a variety of projects that promote clean energy and environmental sustainability. Some of the most common types of projects that are funded through clean energy bond financing include:
• Energy efficiency projects: These projects can help to reduce energy consumption and save money on energy bills. Examples of energy efficiency projects include:
• Installing energy-efficient lighting
• Weatherizing homes and businesses
• Retrofitting buildings with energy-efficient HVAC systems • Renewable energy projects: These projects can help to reduce reliance on fossil fuels and generate clean, renewable energy. Examples of renewable energy projects include:
• Installing solar panels
• Building wind turbines
• Developing geothermal energy projects
• Clean transportation projects: These projects can help to reduce air pollution and promote cleaner transportation options. Examples of clean transportation projects include:
• Installing electric vehicle charging stations
• Building bicycle paths and trails
• Providing subsidies for public transportation
• Sustainable infrastructure projects: These projects can help to reduce environmental impacts and promote sustainable development. Examples of sustainable infrastructure projects include:
• Building green roofs
• Developing water conservation projects
• Restoring wetlands
Clean energy bond financing is a valuable tool for promoting clean energy and environmental sustainability.
The funds raised through clean energy bond financing can help to support a wide range of projects that are making a positive impact on the environment.
HIP Funding Strategies Assessment & Gap Analysis 24
Here are some additional benefits of clean energy bond financing:
• It can help to attract private investment in clean energy projects. • It can help to reduce the cost of clean energy projects. • It can help to create jobs in the clean energy sector. • It can help to improve air quality and reduce greenhouse gas emissions.
The average project amount that the Clean Energy Bond Financing would finance is $10 million to $100 million. However, the amount of funding that a project receives can vary depending on the size and complexity of the project, as well as the need for the project. • Bond Financing/Loan
GoGreen Multifamily targets affordable multifamily properties where at least 50% of the units are restricted to households of low to moderate income (80-120% Area Median Income) and features a credit enhancement to help financing entities mitigate risk. Products supported include loans, leases, equipment financing agreements, service agreements and savings-based payment agreements. More Information & Apply
• Transportation Bond
The Governor on October 11, 2009 signed AB 798, creating CTFA within the State Treasurer’s Office. The statute authorizes the CTFA to issue, or approve the issuance of, revenue bonds to finance transportation projects. The CTFA will review proposed projects to ensure they are financially sound, and has the ability to approve tolls as part of the financing plans to repay revenue bonds.
Paying for transportation projects has grown increasingly difficult. One of the largest funding sources historically has been gasoline taxes. Those revenues, however, have not kept pace with the state’s construction and improvement needs. Meanwhile, state and local government general fund budgets are under increasing strain. That makes it less feasible, and less prudent, to finance transportation projects through the issuance of general obligation bonds, which are repaid by general funds. More Information & Apply
• Water & Wastewater Rate Reduction Bond Program
The California Pollution Control Financing Authority (CPCFA) has responsibility to review the issuance of certain rate reduction bonds to finance and/or refinance water and wastewater utility projects that are approved by joint powers authorities (JPAs). These issuances allow California local agencies that own and operate water and wastewater utilities to access low-cost financing through rate reduction bonds. The rate reduction bonds issued by JPAs to local agencies to finance or refinance a water or wastewater utility project are to be secured by utility project property and repaid through a separate utility project charge imposed on the utility ratepayers’ bills. More Information & Apply • California Infrastructure and Economic Development Bank (IBank) IBank offers low-cost financing for infrastructure projects, including water, wastewater, and transportation. • California State Water Resources Control Board (SWRCB) Financing Programs These programs provide low-interest loans and grants for water and wastewater infrastructure projects. • California Department of Housing and Community Development (HCD) Housing Programs Various HCD programs support housing-related infrastructure.
FEDERAL FUNDING
• EPA’s Clean Water State Revolving Fund (CWSRF)
HIP Funding Strategies Assessment & Gap Analysis 25
This program provides low-interest loans for investments in wastewater treatment, including the construction of municipal sewage treatment facilities.
• EPA’s Drinking Water State Revolving Fund (DWSRF)
DWSRF offers financial support for water supply infrastructure projects, including loans and loan forgiveness. • Department of Transportation (DOT) Grants
Various DOT grants, such as BUILD and INFRA grants, can fund transportation projects. The DOT’s Federal Highway Administration also offers the Surface Transportation Block Grant Program for a wide array of transportation infrastructure projects.
• Housing and Urban Development (HUD) Community Development Block Grants (CDBG) These grants can fund a variety of infrastructure projects in support of affordable housing, including water and sewer infrastructure.
ADDITIONAL FINANCING MECHANISMS
• Green Bonds
These are similar to municipal bonds but specifically fund projects with environmental benefits, including water and wastewater projects.
• Infrastructure Banks
These institutions, either state-level or national, provide low-cost, long-term financing for infrastructure projects. Establishing a regional infrastructure bank can provide low-interest loans and credit enhancements to support infrastructure projects. This financial institution can pool resources from various sources, including federal, state, and local governments, as well as private investors. • Social Impact Bonds
These bonds fund projects with social benefits, such as affordable housing, with returns paid to investors based on achieving social outcomes.
HIP Funding & Gap Analysis 26
Funding Opportunities Menu
Each funding option below includes a list of the HIP priority projects most likely to be successful for the respective funding opportunity. Given the high competition for many of these grants, and considering that funding organizations often avoid granting more than one or two awards to a single applicant, the projects highlighted in bold are the ones BKF recommends for submission to their corresponding grant. These selected projects have been factored into the gap funding computation, which can be found at the conclusion of the matrix.
Grant Name Application
Due Date
Est. Award
Amount
Est. Total
Fund
Available
Funding
Agency
Funding
Source
Top Matched HIP Projects 2023 Cost
Estimate
Projected
Funds Awarded
Gap in Funding
*cost estimate -
funds awarded =
Gap in Funding
Transportation Projects
Active
Transportation
Program (ATP)
Likely June
2024 $2.5M (average) $750M
California
Transportation
Commission
State
1. Higuera Protected Bike Lanes
2. Madonna Rd. - Class IV - Madonna Inn to Higuera Ave.
3. South of Broad St. and Santa Barbara Ave. Protected Bike Lanes
4. Tank Farm Road Complete Street
1. $8,817,000
2. $1,864,500
3. $4,599,000
4. $1,533,000
1. $2,500,000
2. $1,864,500
3. $2,500,000
4. $1,533,000
1. $6,317,000
2. $0
3. $2,099,000
4. $0
Local Highway
Safety
Improvement
Program (HSIP)
Likely
September
2024
$1.5M (average) $210M
California
Department of
Transportation
State
1. Froom Ranch Frontage & Streetscape Improvements
2. Los Osos Valley Rd/Auto Park Wy Intersection Improvements
3. Roadway Extension of Hetrick Rd
4. Broad St/Tank Farm Rd Intersection Improvements
5. Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements
1. $932,250
2. $1,000,000
3. $3,832,500
4. $2,299,500
5. $12,000,000
1. $932,250
2. $1,000,000
3. $1,500,000
4. $1,500,000
5. $1,500,000
1. $0
2. $0
3. $2,332,500
4. $799,000
5. $10,500,00
Local
Transportation
Climate Adaptation
Program (LTCAP)
5/17/2023 $16M (average) $296.5M
(cycle 1)
California
Transportation
Commission
State
1. Tank Farm Road Complete Street
2. Interchange Improvements at Willow Rd
3. Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements
4. S. 4th St. bike lanes: Grand Ave. to city limits
1. $1,533,000
2. $2,734,600
3. $12,000,000
4. $45,000
1. $1,533,000
2. $2,734,600
3. $12,000,000
4. $45,000
1. $0
2. $0
3. $0
4. $0
Monarch Butterfly
and Pollinator
Rescue
Rolling $200-250K
(average) $3M
California
Department of
Fish and Wildlife
State
1. S. 4th St. bike lanes: Grand Ave. to city limits
2. The Pike Complete Street Improvements
3. Grover Beach Service Addition
4. Beach Cities Trail: Boardwalk Dune Trail
1. $45,000
2. $93,225
3. N/A
4. $15,300,000
1. $45,000
2. $93,225
3. N/A
4. $200,000
1. $0
2. $0
3. N/A
4. $15,100,000
Regional Resilience
Planning and
Implementation
Grant Program
(RRGP)
7/19/2023
$1.5M (average)
Planning grants:
$150 - $650K
Implementation
grants: $650K -
$3M
$18.8M
(over two
rounds)
State of
California,
Governor’s
Office of
Planning and
Research
State
1. North County Charging Facility
2. Niblick Rd. Corridor enhancements, operational improvements, Complete Streets
3. Paso Robles Eastside Grand Loop
4. Creston Rd.: South River Rd. to Niblick Rd.
5. Huer Huero Creek Trail
6. Creekside Bike Path: Phase 1 and 2
7. N. River Rd.
1. $1,000,000
2. $17,257,000
3. $11,187,000
4. $10,000,000
5. $7,818,300
6. $3,600,000
7. $3,214,500
1. $1,000,000
2. $1,500,000
3. $1,500,000
4. $1,500,00
5. $1,500,000
6. $1,500,000
7. $1,500,000
1. $0
2. $15,757,000
3. $9,687,000
4. $8,500,000
5. $6,318,300
6. $2,100,000
7. $1,714,500
HIP Funding & Gap Analysis 27
Grant Name Application
Due Date
Est. Award
Amount
Est. Total
Fund
Available
Funding
Agency
Funding
Source
Top Matched HIP Projects 2023 Cost
Estimate
Projected
Funds Awarded
Gap in Funding
*cost estimate -
funds awarded =
Gap in Funding
Transformative
Climate
Communities
(TCC) Round 5:
Implementation
Grant (FY 22-23)
8/1/2023 Up to $30M $500M
California
Strategic
Growth Council
State
1. Creston Rd.: Niblick Rd. to Meadowlark Dr. (Phase 3)
2. North County Charging Facility
3. Paso Robles Eastside Grand Loop
4. The Pike Complete Street Improvements
5. S. 4th St. bike lanes: Grand Ave. to city limits
6. Huer Huero Creek Trail
7. N. River Rd.
1. $10,000,000
2. $1,000,000
3. $11,187,000
4. $93,225
5. $45,000
6. $7,818,300
7. $3,214,500
1. $10,000,000
2. $1,000,000
3. $11,187,000
4. $93,225
5. $45,000
6. $7,818,300
7. $3,214,500
1. $0
2. $0
3. $0
4. $0
5. $0
6. $0
7. $0
Transformative
Climate
Communities (TCC)
Round 5: Project
Development
Grant (FY 22-23)
8/1/2023 Up to $5M $100M
California
Strategic
Growth Council
State
1. Creekside Bike Path: Phase 1 and 2
2. Huer Huero Creek Trail
3. Niblick Rd. Corridor enhancements, operational improvements, Complete Streets
4. Paso Robles Eastside Grand Loop
5. Las Tablas Rd. at Florence St. Improvements
6. South River Rd. / Charolais Rd. Roundabout
1. $3,600,000
2. $7,818,300
3. $17,257,000
4. $11,187,000
5. $807,950
6. $2,486,000
1. $3,300,000
2. $3,300,00
3. $3,300,000
4. $3,300,000
5. $807,950
6. $2,486,000
1. $300,000
2. $4,518,300
3. $13,957,000
4. $7,887,000
5. $0
6. $0
Transformative
Climate
Communities (TCC)
Round 5: Planning
Grant (FY 22-23)
8/1/2023 $300K (average)
Up to $1M
$50M
California
Strategic
Growth Council
State
1. Creekside Bike Path: Phase 1 and 2
2. Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1)
1. $3,600,000
2. $3,066,000
1. $300,000
2. $300,000
1. $3,300,000
2. $2,766,000
Wildlife Corridor
and Fish Passage Rolling $1M (average) $83.15B
California
Department of
Fish and Wildlife
State
1. Railroad Safety Trail (Phase 7): Bike connection south of Tank Farm Rd.
2. Railroad Safety Trail: bike bridge crossing at Industrial Way
3. Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements
4. Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.
5. Interchange Improvements at Las Tablas Rd
*Must add a wildlife overcrossing or undercrossing to the project(s) submitted for this grant
1. $3,169,650
2. $3,909,150
3. $12,000,000
4. $15,330,000
5. $3,060,000
1. $1,000,000
2. $1,000,000
3. $1,000,000
4. $1,000,000
5. $1,000,000
1. $2,169,650
2. $2,909,150
3. $11,000,000
4. $14,330,000
5. $2,060,000
Charging
and Fueling
Infrastructure
(CFI) Discretionary
Grant Program
5/30/2023
Alternative Fuel
Corridor: $100K -
No max
Community
Charging: $500K -
$15M
$30M
U.S.
Department of
Transportation
Federal 1. North County Charging Facility 1. $1,000,000 1. $1,000,000 1. $0 Congestion
Mitigation and
Air Quality
Improvement
(CMAQ)
Call for
projects
Summer
2023
$1.5M
$505.4M
(California,
FY2023)
U.S.
Department of
Transportation
Federal
1. Broad St/Tank Farm Rd Intersection Improvements
2. Creston Rd.: Niblick Rd. to Meadowlark Dr. (Phase 3)
3. US 101 / SR 46W I/C construct two roundabouts
4. Los Osos Valley Rd/Auto Park Wy Intersection Improvements
5. Las Tablas Rd. at Florence St. Improvements
1. $2,299,500
2. $4,313,210
3. $21,752,500
4. $1,000,000
5. $807,950
1. $1,500,000
2. $1,500,000
3. $1,500,000
4. $1,000,000
5. $807,950
1. $799,500
2. $2,813,210
3. $20,252,500
4. $0
5. $0
HIP Funding & Gap Analysis 28
Grant Name Application
Due Date
Est. Award
Amount
Est. Total
Fund
Available
Funding
Agency
Funding
Source
Top Matched HIP Projects 2023 Cost
Estimate
Projected
Funds Awarded
Gap in Funding
*cost estimate -
funds awarded =
Gap in Funding
Accelerating
Innovative Mobility
(AIM)
Varies $560,000
(average)
$14M
(FY2020)
Federal Transit
Administration Federal
1. Cashless Fare System Conversion
2. North County Charging Facility
3. Grover Beach Service Addition
4. Nipomo Service Addition
5. Paso Robles Service Addition (Beechwood)
6. Paso Robles Service Addition (Olsen/South Chandler)
7. San Luis Obispo Service Additional Stop Along Board or Tank Farm
8. San Luis Obispo Service Addition (Broad and South Higuera)
9. Paso Robles New Route
*Must include the purchase or lease of low or no emission vehicles or include an innovative element (like cashless fare system) to the project(s) submitted for this grant
1. $550,000
2. $1,000,000
3. N/A
4. N/A
5. N/A
6. N/A
7. N/A
8. N/A
9. $1,700,000
1. $550,000
2. $560,000
3. N/A
4. N/A
5. N/A
6. N/A
7. N/A
8. N/A
9. $560,000
1. $0
2. $440,000
3. N/A
4. N/A
5. N/A
6. N/A
7. N/A
8. N/A
9. $114,000
Safe Routes for All
(SS4A) 7/10/2023
Overall: $1.6M
(average)
Implementation:
$15.9M (average)
Supplemental
Planning:
$851,000
(average)
Action Plan:
$535,000
(average)
$1.1B
U.S.
Department of
Transportation
Federal
1. Niblick Rd. Corridor enhancements, operational improvements, Complete Streets
2. Paso Robles Eastside Grand Loop
3. Higuera Protected Bike Lanes
4. Huer Huero Creek Trail
5. South of Broad St. and Santa Barbara Ave. Protected Bike Lanes
6. Los Osos Valley Road Protected Bike Lanes
1. $17,257,000
2. $11,187,000
3. $8,817,000
4. $7,818,300
5. $4,599,000
6. $3,750,250
1. $15,900,000
2. $11,187,000
3. $8,817,000
4. $7,818,300
5. $4,599,000
6. $3,750,250
1. $1,357,000
2. $0
3. $0
4. $0
5. $0
6. $0
Water Projects
Proposition 1
Water Bond
The last
round was
3/31/2023
Keep an
eye out for
possible
future rounds
$10M-$20M $7.5B
California
Department
of Water
Resources
State
1. Paso Robles City wastewater
2. Templeton Community Services District
3. San Luis Obispo (City)
1. $14,300,000
2. $8,000,0000
3. $18,000,000
1. $10,000,000
2. $8,000,000
3. $10,000,000
1. $4,300,00
2. $0
3. $8,000,000
Regional Resilience
Planning and
Implementation
Grant Program
(RRGP)
*for water projects
7/19/2023 $2.5M $100M
State of
California,
Governor’s
Office of
Planning and
Research
State
1. Wastewater Upgrade (Atascadero)
2. Morro Bay (City)
3. Los Osos CSD
1. $25,000,000
2. $22,000,000
3. $10,000,000
1. $2,500,000
2. $2,500,000
3. $2,500,000
1. $22,500,000
2. $19,500,000
3. $7,500,000
Clean Water State
Revolving Fund
(CWSRF)
6/23/2023 $3.5M $163B
U.S.
Environmental
Protection
Agency
Federal
1. Paso Robles City wastewater
2. San Luis Obispo (City)
3. Cayucos Sanitary District (wastewater)
1. $14,300,000
2. $18,000,000
3. $300,000
1. $3,500,000
2. $3,500,000
3. $3,000,000
1. $10,800,000
2. $14,500,000
3. $0
HIP Funding & Gap Analysis 29
Grant Name Application
Due Date
Est. Award
Amount
Est. Total
Fund
Available
Funding
Agency
Funding
Source
Top Matched HIP Projects 2023 Cost
Estimate
Projected
Funds Awarded
Gap in Funding
*cost estimate -
funds awarded =
Gap in Funding
Drinking Water
State Revolving
Fund (DWSRF)
Rolling $2.3M $34B
U.S.
Environmental
Protection
Agency
Federal
1. Atascadero Mutual Water Company
2. Paso Robles City Wastewater
3. City water, Oceano CSD
1. $10,000,000
2. $14,300,000
3. $3,800,000
1. $3,200,000
2. $3,200,000
3. $3,200,000
1. $6,800,000
2. $11,100,000
3. $600,000
Integrated
Regional Water
Management
(IRWM) Grant
Programs
Round 2 was
2/1/2023
Keep an eye
out for the
next round
$17.2M $500M
U.S.
Environmental
Protection
Agency
Federal
1. CSA 23- Santa Margarita
2. Paso Robles City water
3. Atascadero Mutual Water Company
1. $1,500,000
2. $14,300,000
3. $10,000,000
1. $1,500,000
2. $14,300,000
3. $10,000,000
1. $0
2. $0
3. $0
Safe Drinking
Water State
Revolving Fund
(SDWSRF)
Rolling $1M-$10M $34 billion
U.S.
Environmental
Protection
Agency
Federal
1. CSA 1 Nipomo
2. Cal Poly (Increase Water Storage Capacity)
3. S&T Mutual Water Company
1. $100,000
2. $15,000,000
3. $2,900,000
1. $100,000
2. $10,000,000
3. $2,900,000
1. $0
2. $5,000,000
3. $0
Water and Waste
Disposal Loan and
Grant Program
Rolling $2.5M $15B
U.S.
Department of
Agriculture
Federal
1. Atascadero Mutual Water Company
2. Cal Poly (Increase Water Storage Capacity)
3. Paso Robles City Wastewater
1. $10,000,000
2. $15,000,000
3. $14,300,000
1. $2,500,000
2. $2,500,000
3. $2,500,000
1. $7,500,000
2. $12,500,000
3. $11,800,000
Water
Infrastructure
Finance and
Innovation Act
(WIFIA)
Rolling Varies $10B
U.S.
Environmental
Protection
Agency
Federal
1. Cal Poly (Water Recycling Strategy)
2. San Luis Obispo (City)
3. San Miguel CSD
1. $35,000,000
2. $18,000,000
3. $10,000,000
1. $5,000,000
2. $5,000,000
3. $5,000,000
1. $30,000,000
2. $13,000,000
3. $5,000,000
Alternative Funding (Bonds)
Clean Energy Bond
Financing Rolling Interest on bond TBD
California
Alternative
Energy and
Advanced
Transportation
Financing
Authority
State 1. Transportation and water projects
Bond that is issued to raise money for clean energy
projects.
Cost Estimate in 2023: $70,000,000
Issue Green Bond Measure and market to potential
investors who are interested in environmentally friendly investments.
Bond Financing/
Loan Rolling Interest on bond TBD
California Hub
for Energy
Efficiency
Financing
State 1. Transportation and water projects
Bond that is issued to raise money for clean energy
projects.
Cost Estimate in 2023: $70,000,000
Transportation
Bond Rolling Interest on bond TBD
California
Transportation
Financing
Authority
State 1. Transportation projects Issue Transportation Bond to interested local investors.
Water and
Wastewater Rate
Reduction Bond
Program
Rolling Interest on bond TBD
California
Pollution
Control
Financing
Authority
State 1. Water projects Issue Water Bonds to interested local investors.
Total Projected Funds Awarded (projects in bold) $90,583,425 HIP Funding Strategies Assessment & Gap Analysis 30
Funding Gap Analysis
Comprehensive Gap Analysis for HIP Projects:
A Strategic Approach by BKF
In our continuous commitment to uncover potential funding avenues for the HIP projects currently facing financial shortfalls, BKF undertook a meticulous funding gap analysis. This analysis was designed to evaluate the disparity between the cost estimate for each project and the anticipated funding that could be obtained through various financial mechanisms such as grants, bonds, loans, and tax measures. The following is a detailed overview of the process we undertook and the expected outcomes of the funding gap analysis.
Project Assessment & Funding Requirement Determination:
Our first step was to conduct a thorough review and categorization of the 80 underfunded HIP projects provided by SLOCOG. We analyzed and prioritized the top projects based on their urgency, impact, and feasibility. The final project list that the BKF team worked with included a diverse mix of projects, including transportation, water, and wastewater projects.
Identification & Evaluation of Potential Funding Sources:
In the next phase of our analysis, we embarked on an extensive research process to identify potential funding sources. This process was multi-faceted and involved several key steps:
1. Exploration of Various Funding Mechanisms: We began by exploring a wide range of funding mechanisms. This included not only traditional sources such as grants and government programs, but also other financial instruments such as loans, bonds, and tax measures. We also considered innovative funding mechanisms like public-private partnerships and impact investing.
2. Research Into Specific Funding Opportunities: Once we had a broad understanding of the types of funding mechanisms available, we delved deeper into specific funding opportunities. This involved researching grant programs, loan opportunities, and other funding sources at the local, regional, state, and federal levels.
3. Analysis of Funder Priorities & Eligibility Criteria: For each potential grant funding source, we conducted a detailed analysis of the funder’s priorities and eligibility criteria. This involved reviewing the funder’s mission and goals, past funding history, average grant awards, forecasted funding cycles and other specific requirements for funding, like including wildlife passages when targeting roadway rehabilitation projects. We also considered the application process and deadlines to ensure that requirements can be met in a timely manner.
4. Matching Projects with Suitable Funding Opportunities: With a comprehensive list of potential funding sources and a deep understanding of their priorities and criteria, we then matched the projects with suitable funding opportunities. This involved a careful review of each project’s goals, needs, and potential impact, and then aligning these with the priorities and criteria of the potential funders. We considered not only the financial fit but also the strategic fit, ensuring that the funding would support the project’s long-term success.
5. Continuous Monitoring & Updating: The funding landscape is dynamic, with new opportunities arising, and existing opportunities changing regularly. Therefore, we continuously monitored and updated our list of potential funding sources. This ensured that we were always working with the most current and relevant information.
Through this comprehensive and dynamic process, we were able to identify a wide range of potential funding sources for the HIP projects. This set the stage for the next steps in our gap analysis, which included estimating potential grant funding available for each project, and calculating the funding gap.
HIP Funding Strategies Assessment & Gap Analysis 31
Estimation of Potential Grant Funding
Following the identification of potential funding sources, we moved on to the critical task of estimating the potential grant funding that could be secured. This process was multi-layered and involved several key steps:
1. Assessing Probability of Securing Funds: For each identified funding source, we assessed the probability of securing funds. This involved considering several factors:
• Competition: We evaluated the level of competition for each funding source. This included looking at the number of applications typically received, the number of awards given out, whether local, state or federal grants and the average size of the awards.
• Past Award History: We reviewed the past award history of each funding source. This involved looking at the types of projects that have been funded in the past, the geographical distribution of awards, and the size of the awards. It should be noted that we based the gap analysis on the average award amount from previous grant cycles.
• Strength of Proposal: We also considered the potential strength of our proposal for each funding source. This included evaluating the alignment between the project’s goals and the funder’s priorities, the community need, and potential impact of the project.
2. Calculating Potential Grant Funding: Based on our assessment of the probability of securing funds, we then calculated the average grant award available for each project. This involved dividing the total funding available by the number of awards. This gave us a realistic estimate of the potential funding for each grant.
3. Considering Funding Constraints: In our calculations, we also considered any constraints or limitations associated with the funding sources. This included match requirements, funding caps, and restrictions on the use of funds. These constraints were factored into our estimates, where feasible, to ensure they were as accurate and realistic as possible.
4. Continuous Review & Adjustment: Given the dynamic nature of grant funding, we continuously reviewed and adjusted our estimates as new information became available. This included updates on funding availability, changes in competition levels, and new grant programs.
Through this detailed process, we were able to estimate the potential grant funding for the HIP projects. This set the stage for the next steps in our gap analysis, including calculating the funding gap and developing strategies to bridge this gap.
Calculation of the Funding Gap
After estimating the potential grant funding, we proceeded to calculate the funding gap. This is a critical step in the gap analysis process as it identifies the additional financial resources that need to be secured to fully finance the priority projects. Here’s a detailed breakdown of how we approached this:
1. Determining Total Funding Needed: The first step in calculating the funding gap was to determine the total funding needed for each project. This was based on the 2023 cost estimates from the 2023 HIP, established at the beginning of the gap analysis process.
2. Comparing with Potential Grant Funding: Next, we compared the total funding needed with the potential grant funding that we had estimated in the previous step. This involved subtracting the potential grant funding from the total funding needed for each project.
3. Identifying the Funding Gap: The difference between the total funding needed and the potential grant funding represented the funding gap. This gap is the additional funding that needs to be secured to fully finance the projects. It provides a clear indication of the financial resources needed to be secure through alternative strategies.
HIP Funding Strategies Assessment & Gap Analysis 32
4. Considering Funding Constraints: In calculating the funding gap, we also considered any constraints or limitations associated with the potential grant funding.
5. Continuous Monitoring and Adjustment: Given the dynamic nature of project costs and funding availability, we continuously monitored and adjusted our calculation of the funding gap. This ensured that we were always working with the most current and accurate information.
6. Calculating the Gap in Funding: As mentioned previously, in light of the intense competition associated with many grants, coupled with the fact that many funding bodies typically shy away from awarding more than one or two grants to the same applicant, we chose one to two projects per grant as suggested projects for application to the respective grant program. These projects are denoted in bold within the Funding Opportunities Menu, starting on page 26 of this assessment.
Top Matched HIP Projects most likely to Fund Projected Funds Awarded
Tank Farm Road Complete Street $1,533,000
Los Osos Valley Rd/Auto Park Wy Intersection Improvements $1,000,000 Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements $12,000,000 The Pike Complete Street Improvements $93,225
Creekside Bike Path: Phase 1 and 2 $1,500,000
Paso Robles Eastside Grand Loop $11,187,000
Las Tablas Rd. at Florence St. Improvements $807,950
South River Rd. / Charolais Rd. Roundabout $2,486,000
Orcutt Rd. Widening: Johnson Ave. to Tank Farm Rd. (Phase 1) $300,000 Railroad Safety Trail: bike bridge crossing at Industrial Way $1,000,000 North County Charging Facility $1,000,000
Traffic signal, ADA ramps, and left-turn lane at Las Tablas Rd. at Florence St. $807,950 Cashless Fare System Conversion $550,000
Huer Huero Creek Trail $7,818,300
Templeton Community Services District $8,000,000
Los Osos CSD $2,500,000
Cayucos Sanitary District (wastewater) $3,000,000
City water, Oceano CSD $3,200,000
Paso Robles City water $14,300,000
Cal Poly $10,000,000
Atascadero Mutual Water Company $2,500,000
San Miguel CSD $5,000,000
Total $90,583,425
HIP Funding Strategies Assessment & Gap Analysis 33
According to the 2023 HIP, the total estimate for all 80 HIP priority projects is $1,014,252,229. Considering the total projected funds awarded for the projects most likely to be successful for grant application (projects in bold on the Funding Opportunities Menu), the total gap in funding is:
Gap in Funding for HIP Priority Projects:
$1,014,252,229 - $90,583,425 = $923,668,804 (gap in funding) By calculating the funding gap, we were able to identify the financial resources that need to be secured to fully finance the HIP projects. This set the stage for the next steps in our gap analysis, including developing strategies to bridge the funding gap and preparing a comprehensive report for review.
Innovative Strategies to Bridge the Funding Gap
Understanding and addressing the funding gap was pivotal for the successful execution of the HIP. Upon identifying these funding shortfalls, BKF devised a series of tailored strategies to secure the remaining funds.
Our approach went beyond traditional methods and explored a variety of funding avenues to ensure the successful completion of each project.
1. Targeted Grant Opportunities: We continued to explore targeted grant opportunities that aligned with the specific needs and goals of each project. This included not only government grants but also grants from private foundations, corporations, and international organizations. We also considered grants that supported innovative solutions, sustainability, and community development.
2. Alternative Funding Avenues: In addition to grants, we explored other funding avenues such as loans, block grants, tax-based financing, and bonds. We also considered innovative financing mechanisms such as public-private partnerships, impact investing, and crowdfunding.
3. Leveraging Community Resources: Moving forward, we believe that the community can play a critical role in bridging the funding gap. This could involve community fundraising events, volunteer labor, and in-kind donations. By leveraging community resources, cities can not only bridge the funding gap but also build stronger community support for the projects.
4. Cost-Saving Measures: Jurisdictions should also explore cost-saving measures that can reduce the total funding needed. This could involve optimizing project designs, improving efficiency, and leveraging technology. Jurisdictions should also consider collaborative approaches among the SLOCOG cities that can share costs among multiple stakeholders and seek volume discounts and leverage the collective work needed for cost savings.
5. Policy Advocacy: Jurisdictions should engage in policy advocacy to secure more funding for the HIP projects. This could involve lobbying and advocating for increased government funding, working with elected official to secure funding through the legislative process, gain more favorable policy conditions, and greater recognition of the importance of the HIP infrastructure projects in the larger context of developing the needed housing mandated by the RHNA requirements.
Next, BKF will prepare a comprehensive presentation for the SLOCOG Board Meeting. The report will deliver a detailed breakdown on a project-by-project basis, covering funding requirements, corresponding funding sources, projected grant funding, and the residual funding gap, including shortfalls and match requirements.
Furthermore, the report will include a strategy for bridging the funding gap.
In conclusion, our approach to bridging the funding gap goes beyond traditional methods and explores a variety of innovative strategies. We believe that this forward-thinking approach will not only secure the necessary funds but also build stronger support for the HIP projects and ultimately the needed housing that these projects will support and make more viable.
HIP Funding & Gap Analysis 34
Regional Housing & Infrastructure Plan
Grants Calendar
Estimated Funds Available by Quarter $14,300,000 $17,283,000 $40,407,200 $18,593,225 Agency Estimated Funds Available by Quarter Jan Feb March April May June July Aug Sept Oct Nov Dec Transportation Grants
CTC Active Transportation Program (ATP) Pre-Proposal App Due DOT Local Highway Safety Improvement Program
(HSIP) Pre-Proposal App Due
CTC Local Transportation Climate Adaptation
Program (LTCAP) Pre-Proposal App Due
CDFW Monarch Butterfly & Pollinator Rescue Rolling
OPR Regional Resilience Planning and
Implementation Grant Program (RRGP) App Due
SGC Transformative Climate Communities (TCC)
Round 5: Implementation Grant (FY 22-23) Pre-Proposal App Due SGC
Transformative Climate Communities (TCC)
Round 5: Project Development Grant (FY 22-
23)
Pre-Proposal App Due
SGC Transformative Climate Communities (TCC)
Round 5: Planning Grant (FY 22-23) Pre-Proposal App Due CDFW Wildlife Corridor and Fish Passage Rolling
DOT Charging and Fueling Infrastructure (CFI)
Discretionary Grant Program App Due
DOT Congestion Mitigation and Air Quality
Improvement (CMAQ) App Due (TBD)
FTA Accelerating Innovative Mobility (AIM) Pre-Proposal App Due DOT Safe Routes for All (SS4A) Pre-Proposal App Due
Water Grants
DWR Proposition 1 Water Bond Pre-Proposal App Due
OPR Regional Resilience Planning and
Implementation Grant Program (RRGP) App Due
EPA Clean Water State Revolving Fund (CWSRF) Pre-Proposal App Due EPA Drinking Water State Revolving Fund (DWSRF) Pre-Proposal App Due EPA Integrated Regional Water Management
(IRWM) Grant Programs App Due
EPA Safe Drinking Water State Revolving Fund
(SDWSRF) Rolling
USDA Water and Waste Disposal Loan and Grant
Program Rolling
EPA Water Infrastructure Finance and Innovation
Act (WIFIA) Rolling